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.

 

-----------------------------------------------------------------

 

Also, know how to buy mutual funds online:

 

Invest in DSP BlackRock Mutual Funds Online

 

Invest in Reliance Mutual Funds Online

 

Invest in HDFC Mutual Funds Online

 

Invest in Sundaram Mutual Funds Online

 

Invest in Birla Sunlife Mutual Funds Online

 

Invest in IDFC Mutual Funds Online

 

Invest in UTI Mutual Funds Online

  

Invest in SBI Mutual Funds Online

 

Invest in L&T Mutual Funds Online

 

Invest in Edelweiss Mutual Funds Online

 

 

 

Popular posts from this blog

TDS Rate and Personal Account Number(PAN)

    The TDS rate doubles to 20% from 10% if you fail to mention your Personal Account Number   IF you run a glance through your pay slip, you will come across something called TDS, which is tax deduction at source. In most cases, the employer deducts this amount at the time of payment of salary itself and pays the total tax amount to the government on behalf of all the employees. If you are a self- employed or practicing professional s, you have to pay this amount yourself.    Tax deducted at source is one of the modes of income tax collection by the government. Under the income-tax laws, income tax at specified rates is required to be deducted while making certain payments.    The rate of deduction of tax at source on interest and rent payment is 10%. For salary payments, the employers deduct income tax at source on a monthly basis after computing income tax liability on estimated annual taxable income of the employee. Tax benefits on housing loan, investments, etc are consid...
Read more

Equity investors should track market developments

The stock markets have been volatile over the last few days. They are in a sideways movement and trying to find the bottom after a fall of 20 percent a week ago. The market sentiments are not very positive at the moment and the recent developments are expected to dampen them further. Globally, governments and central banks are trying to cut rates and announce packages to improve business sentiments. These are some of the major developments in the markets last few month: A) Global On the global front, another large US bank went into a financial crisis. The US government took quick measures to avoid the spread negative sentiments in the markets. The US government announced a bail-out package and agreed to shoulder the losses on the bank's risky assets. China announced a large cut in interest rates and reserve ratio to boost the investor sentiments in the markets. Recently, the World Bank announced China's growth rate next year will come down to 7.5 percent. The European ...
Read more

Fortis Mutual Fund

Fortis Mutual Fund, a relatively new player, it is still to prove its case and define its position in the industry. In September 2004, it came onto the scene with a bang - three debt schemes, one MIP and one diversified equity scheme. And investors flocked to it. Going by the standards at that time, it had a great start in terms of garnering money. Mopping up over Rs 2,000 crore in five schemes was not bad at all. The fund house has not been too successful in the equity arena, in terms of assets. Though it has seven equity schemes, it is debt and cash funds that corner the major portion of the assets. Most of the schemes are pretty new, and the two that have been around for a while have a 3-star rating each. The last two were Fortis Sustainable Development (April 2007), which received a rather poor response, and Fortis China India (October 2007). Fortis Flexi Debt has been one of the better performing funds, after a dismal performance in 2005. It currently has a 5-star rating. None ...
Read more

Banks tweak ATM strategies

Unrestricted usage of third-party ATMs ends on Thursday The era of free ATM usage will come to an end on Thursday, October 15. Every transaction carried out on another bank’s ATM could cost an account holder as much as Rs 20 and withdrawals will face a limit of Rs 10,000, the Indian Bank’s Association has said in its guidelines. According to the guidelines, banks can offer savings-account holders five free thirdparty withdrawals every month —they can be charged from the sixth transaction onwards. Current account holders can be charged the fees, which ranges from Rs 18 to Rs 20, from the very first transaction. Most banks are convinced that charging current account and no-frill account customers from the word go is a good idea. It suggests that the usage of ATMs by current-account holders is price-insensitive. For others, banks have decided to frame their charges depending on the profile of the customer. For instance, HDFC Bank is allowing its salary account and premium customers an unl...
Read more

Women need to plan for Retirement

Plan for Retirement Online       Higher life expectancy, lower pay and fewer work years necessitate thorough planning.   Women have raced ahead of men in various fields but, when it comes to retirement planning, they tend to lag behind. Despite saving a higher proportion of their salary, compared to men, women generally do not take retirement planning seriously. Below are some of the reasons why they should: According to the United Nations Department of Economic and Social Affairs, in India, the life expectancy of women is 69 years and, of men, it's 66 years. Due to this, a woman will need an additional `55 lakh to manage her living expenses (see table).Besides, usually, women work fewer years compared to men to take care of children and family.Further, a recent study by Korn Ferry Hay Group shows that women in India earn 18.8% less than men. Not to mention, a higher life expectancy can also mean higher medical expenses as the likelihood of health ailments such as diabetes, high...
Read more
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