Skip to main content

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.

 

Popular posts from this blog

Stocks with a high dividend yield

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India) Stocks with a high-dividend yield can provide investors additional cash flow. More importantly, it is tax-free   With April 2011 just over, the 'earnings season' is well and truly here. This is the time most companies pay out a portion of their profits as dividends to shareholders. Since dividends are tax-free, they are an attractive income source with a select class of investors, who depend on these for additional cash flow. SIGNIFICANCE A company doing well and generating profits will usually be in a position to declare dividends regularly. Hence, a key parameter one should look at whilst investing in a stock is whether the company has a good dividend record. Typically, dividend yield stocks are large-caps and generally not capital-intensive. This is suggestive of the fact that the downside risk on...

Systematic withdrawal plan

  Start Systematic withdrawal plan Online Although an SWP gives you regular income and saves on taxes in the long term, you cannot open an SWP on a scheme where you have an ongoing SIP   iStockPhoto If you are planning to take a sabbatical from work or are retiring soon, you may be looking at different investment options that give a regular income. Usually, a lump sum is invested to get regular fixed amounts later. Popular products include post office monthly income scheme, Senior Citizens' Savings Scheme and monthly income plans (MIPs). A lesser known option is the systematic withdrawal plan (SWP) in mutual funds. Recently, some funds have even removed the exit load on SWPs if you were to withdraw up to 15-20% in the first year, to encourage people who want to start investing in this instrument. Here is a look at what an SWP is. WHAT IS SWP? Many of us would be familiar with a systematic investment plan (SIP ), where a corpus ...

Mutual Fund Review: Religare Tax Plan

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...

Assured Nivesh Plan and Smart Suraksha Plan

  Canara HSBC Oriental Bank of Commerce Life Insurance Company has added two new products to its suite -   Assured Nivesh Plan Smart Suraksha Plan   both designed to protect and meet future financial needs.   Assured Nivesh Plan is a traditional endowment plan that caters to the need of savings along with life cover in a single plan. This plan offers limited premium payment options where an individual pays premiums for a limited number of years and yet enjoys the benefits for the complete policy term.   Smart Suraksha Plan is a cost effective pure protection plan that provides insurance coverage against untimely death, thereby, helping one secure their family's financial future. ----------------------------------------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in india for 2016 1. BNP Paribas Long Term Equi...

HSBC MIP Savings Fund dividend

Invest HSBC MIP Savings Fund Online   HSBC Mutual Fund   has announced dividend under the following schemes: Scheme Dividend ( R /unit) HSBC Income Investment-DQ 0.1733436 HSBC Flexi Debt Direct-DQ 0.18056625 HSBC Flexi Debt-DQ 0.18056625 HSBC MIP Regular-DQ 0.18056625 HSBC MIP Savings-DQ 0.2022342 HSBC MIP Savings Direct-DQ 0.2022342                     The record date has been fixed as June 27, 2016.     ----------------------------------------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saving Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in india for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Franklin India TaxShield 4. ICICI Prudential Long Term Equity Fund 5. IDFC Tax Advantage (ELSS) Fund 6. Birla Sun Life Tax Relief 96 7. DSP BlackRock Tax Saver Fund 8. Reliance Tax Saver (ELSS) Fund 9. Religare Tax Plan 10. Birla Sun Life Tax Plan I...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now