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When Do Car Insurance Claims Get Rejected?

By Finserv MARKETS - Jan 30,2019
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When Do Car Insurance Claims Get Rejected?

Have you come across a situation where your car insurance claim got rejected? This is not new in the motor industry. Most individuals tag the company as a fraudulent business for not accepting the claim. However, in reality, it is a normal practice for insurance companies to reject claims. When your claim is rejected, you do not get the insurance money and end up paying the expenses from your own pocket. It’s not necessary that every claim you file gets accepted. Many people are not aware of the legitimate reasons due to which an insurance company rejects their claims.

Factors that lead to the rejection of a Car Insurance Claim

Listed below are some factors that could lead to the rejection of your car insurance claim.

  • Theft of the vehicle

In case of a claim related to the theft of the vehicle, there are high chances that the insurance company may hold you responsible for it. This is because your insurance provider wants you to be cautious about your vehicle and take preventive measures to protect it.

  • Giving inadequate information

Your car insurance provider expects you to give correct and complete information. If you ignore this fact and provide inadequate information at the time of filing the application, your claim will be rejected. An insurance company can reject a claim if the necessary details in the application are missing or false

  • Wrong use of the car

If you have purchased a policy for a private car but you use the car for commercial purposes, there is a high possibility that your claim will be rejected. If you want to use the car for commercial purposes, you need to buy a relevant insurance policy for such commercial use.

  • Partial acceptance of the claim

In many cases, the car insurance company will partially accept your insurance claim. One of the main reasons for this is the partial damage recovery from the insurance company, during an accident, due to the depreciation of the vehicle.

  • Inadequate proof

If you make a claim without relevant documents or receipts, there are chances that your claim will be rejected by your insurance company.

  • An accident caused due to negligence

If your car meets with an accident because of your negligence like driving under the influence of alcohol/drugs or driving without a license, then you will not be eligible for an insurance claim, and you will have to bear the expenses/losses caused to the vehicle.

We, at Finserv MARKETS, some great car insurance plans for you. If you are looking to buy a fresh policy, you can compare insurance plans online and make a well-informed decision. A comprehensive car policy will keep you covered in case of accidents, damages, and third-party liabilities. Get the latest quote from us and secure your car today.

To know more on Car Insurance and related topics in depth, you can check out these blogs:

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522