Why they reject the insurance claim!

Either it is personal vehicle or commercial vehicle it must have insurance policy then only it is officially eligible to travel on the roads. Insurance helps from the loss due to the accidents. So many ignore this key insurance policy. How many types of insurances are there? Why they reject the policies? What to do then? What are the frauds in this procedure…

In our country probably 4 lakh members are met with accidents for every month. These are increasing by 4 percent for every year. The reasons are roads which are unusual, storms and earthquakes etc. who damages the vehicles most of the times. To avoid the financial damage we must have insurance for the vehicle.

According to motor vehicle act for every vehicle third party insurance is must. Without this policy should not use any kind of vehicle. If the vehicle causes damage to some others property and life the benefit will be paid by insurance company. But in this the policy holder will not get any benefit.

There is a comprehensive policy available for those want to take complete vehicle insurance. This gives complete insurance for the vehicle. In this policy benefit will be paid for the owner of vehicle and also other passengers. But, when we are choosing this we have to confirm for which we don’t get benefits. There are some limitations depends on the insurance companies.

Why they reject,

It’ll be a big trouble for the owner of a vehicle if it met with an accident. It will be more trouble if insurance will be rejected for both person and vehicle. Sometimes there might not valid reason. But most of the times they show valid reasons to reject.

Some of the reasons,

After the accidents some persons repair the damage on their own expenses. At that time there is a chance of not getting insurance claim.

When we are claiming policy we should specify the fuel of vehicle. If we change the fuel after taking the policy we have to let the insurance company know about it. Otherwise there is a chance of rejecting the claim.

We should have valid driving license and if we don’t have it insurance company will reject the claim.

Some people use their personal vehicles for transport purpose. For those they may not get insurance.

Information should reach with 48 to 72 hours after accident. Otherwise insurance will not be received.

Insurance will not be given for…

Vehicle is at no parking zone or car is having more than specified passengers and it is met with an accident

The person who is driving vehicle has taken alcohol

If the accident have taken place outside the specified location in the policy

Don’t involve in fraud,

To claim insurance some people intentionally prefer to do some fraud activities. For example fixing a number plate which is having policy to the vehicle not having insurance. Submitting fault documents, applying for third party insurance claim, fraud driving license and etc.

Ombudsman,

If insurance company has rejected your claim without a valid reason you can consult ombudsman. There is no need of any documentation, no need of reference, you can speak on your own. You have to consult ombudsman within 30 days of rejection of your claim by insurance company.

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