Top 6 Reasons for Claim Rejections
You might have dreamt for ages to buy your car and might have saved up a lot of money for the same. And, you obviously do not want anything to happen to it. Unfortunately, cars are not damage-proof. You never know what might happen on the road.
If you happen to get into an accident or your precious vehicle is stolen, you can end up incurring big expenses. And, if your vehicle causes damage to another person or their property, the costs for compensating the same might get very heavy.
Having a car insurance plan can be a boon for you and can help you in covering all these costs easily
But, did you know that your insurance claim can be rejected by the insurance company? What if it gets rejected when you’re in urgent need of the money? Such rejections can be frustrating and can bring you mental stress along with sudden out-of-pocket expenses.
Hence, it is very important to know why your car insurance claim can get rejected and avoid all the possible mistakes , so you don’t have to end up paying for repairs from your own wallet inspite of having an insurance policy..
In this article, we will discuss some major reasons that might lead to the rejection of a claim. Read on!
Reasons Why Your Claim Can Be Rejected
Here are a few reasons why your claim might get rejected -
👉 Missing out on your renewal:
In general, an insurance policy lasts for 13 months. In case you miss your renewal date and you make a claim during this period, your insurance company can reject your claim.
👉 Misrepresentation of facts
The coverage your policy provides you depends on the information you provide to the insurance company. If you provide incorrect details to your insurance company while purchasing a policy, it might lead to the rejection of your claim. In short, any misrepresentation found at the time of the claim will lead to the rejection of your claim.
For example, a GCC-specific car's premium will be lesser than that of a high-end sports model car because of its parts, structure, and specifications. So, if you have a modified car and mention it as a GG-specific car in your insurance application to reduce your premiums,
This may lead to a rejection of the claim as well as cancellation of your insurance policy.
Important: Do not enter any false details while buying the insurance plan just to save premium costs.
If in any circumstance, it is found that the accident was a deliberate action and done intentionally, the insurance company will reject your claim and not provide you coverage for the losses.
For instance,if you drive recklessly and collide with another vehicle or intentionally get into an accident just to claim from your insurance, your car insurance company can deny your claim
👉 Driving the vehicle under the influence of alcohol/drugs
It is always risky to drive a vehicle under the influence of substances like narcotics and alcohol. Any accident caused because you drove the vehicle under the influence of alcohol or drugs, will lead to the rejection of your claim and you will also be required to pay a hefty fine.
And you will have black points added to your driving licence.
👉 Driving Driving your car without a valid licence
If you get into an accident and don't possess a valid driving licence, this can lead to the rejection of any claim you make.
👉 Incomplete documents
To make a claim, you need to have some important documents on hand like your Emirates ID, car registration document, valid license, etc. If you fail to produce the requisite documents, your claim can be rejected by the insurer.
So, these were a few reasons why your claim might get rejected by the insurance company. There may be other reasons as well - depending on the T&Cs laid down by different insurance companies.
Make sure you read the policy wording well, understand the conditions, and then buy the policy.
We have reached the end! Having a car insurance policy helps you to cover up the losses which you would otherwise spend from your savings.
Be careful and do not commit any mistake that might lead to the rejection of your car insurance claim
We hope the reasons discussed above have made you aware of the probable reasons for claim rejections.