How to avoid Car Insurance Claim Rejection

Having bought a new car, you proceed to duly purchase a car insurance policy – and then let your guard drop. You become careless, even reckless; you don’t pay your premiums on time, you drive without having your driving license handy, you think nothing of driving under the influence of alcohol, etc., all of which are reasons for your insurance company to reject your claims in case of an accident. 

Pay your car insurance premiums on time

If you do not pay your car insurance premium on time, your policy will lapse, and obviously you can’t expect your insurance company to honor a claim raised after an accident on a policy that has expired. On top of it, if you do not pay your premium even in the 90-day grace period, then you will also forfeit your right to a no-claims bonus. So do not procrastinate and ensure that you pay your car insurance premium on time. 

Do not drink and drive

This is something that many people blissfully neglect. They think that one small drink will pose no problem; buy they would be wrong. You do not have to be stone drunk for your insurance claim to be rejected, it can happen even if your surveyor finds you were driving under the influence when the accident happened, no matter how little you had. Moreover, drunk driving can even land you behind bars. So, avoid being so reckless if you want your insurance company to honor your claims.

Don’t forget to transfer the car ownership in the insurance policy

When you buy a used car, you may neglect to transfer the ownership of the car in the vehicle’s insurance policy; merely taking possession of the policy when you buy your car does not entitle you to the benefits of the car insurance policy in case of an accident – the car insurance policy should be in your name, or you will not get any compensation in case of an accident. So, remember that whether it is neglect or whether you really forgot, the loss is totally yours.

Don’t use your private car for commercial purposes

If you use your personal car for commercial purposes, such as letting it out to ride-hailing services like Uber or OLA, you are in for a rude shock in case of an accident. The insurance company will not even entertain your claims if you misuse your personal car. If your intention is to earn money from your car, then you can buy the appropriate car insurance policy to avoid claim rejection. There may be some other reasons such as fitting your car with an LPG or a CNG kit without informing your car insurance company, or if you carry out repairs to your car after an accident without first informing your insurance company.

Take the above precautions to ensure that your car insurance claim is not rejected. Buy insurance from Bharti AXA and take advantage of their massive network of cashless car repair workshops spread all over the country.

Leave a Reply