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How to avoid rejection of your motor cover claims?

 

Any loss due to wear and tear is not part of the auto policy ANY modifications in the vehicle, which also increases risk, must be brought to notice of the insurer

SIMPLY buying a car insurance policy may not necessarily ensure claim settlement in case of need. A large number of claims are rejected by insurance companies due to common but avoidable mistakes on the part of the customer.

Don't forget to renew your policy on time. Despite being a customer of the insurance company for many years, even if you miss renewal by a single day, and unfortunately, a claim arises on that day, the company will reject your claim. Unlike life insurance policies, there is no grace period for motor insurance.


These insurance contracts are only for a 12-month period. Apart from claims, you may also lose out on a `no claim' bonus if the vehicle is not insured within 90 days of expiry of the policy.

Motor insurance cover risks against accidental damages to the vehicle. Any loss due to wear and tear is not part of the insurance policy. Wear and tear of parts, including tyres and tubes, are not covered. Any claims for such damages will be rejected.

In case you make any alterations in your vehicle, such as fitting of CNG/LPG kit, inform your insurer, failure to do so may lead to claim rejection in the future.

Any modifications done in the vehicle, which also increases risk, must be brought to the notice of the insurance company, or else, the company has a right to reject the claim.

The company can also reject your claim if you are found driving under the influence of alcohol at the time of the accident.

Another common mistake most people make while making a claim after the accident is delay in reporting it to the insurance company. All claims must be made within 10 days of accident. "Ideally, all complaints must be reported within seven days," said an official of a public sector insurer.

If you read the policy documents carefully, you will find that there are some restrictions on auto insurance coverage. The vehicle must be driven for personal use only. If you are found using your vehicle as a cab, using your private car as a goods carriage or for racing and speed testing, your claim will be rejected. A proper driving licence holder must drive the vehicle at all times or risk coverage may lapse. In case, you intend to use your car as a cab, inform your insurer.


The insurance cost for a commercial vehicle is different from that of private vehicles.

In case you are buying a second-hand car, make sure that the insurance policy document has been transferred in your name.


At the time of making a claim, name on insurance document and the registration certification (RC) must match or your insurance company can deny your claim.

In case you feel you have not been treated fairly by the insurance company, you can approach the insurance company and file a complaint. If your insurance company fails to address your problem, you can also approach the insurance ombudsman. Recently, the Insurance Regulatory and Development Authority (Irda) launched an online integrated grievance redressal mechanism for policyholders, where they can make complaints online.

 

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