How to claim car insurance, and why do some claims get rejected?

Buying a car is a milestone for most individuals

This explains why they spend a lot of time choosing the car that perfectly fits all their requirements. Similarly, buying the right car insurance policy is also as important as buying the right car for you. It’s the beginning of a long and reliable relationship based on trust. Every insurance company aims to provide the best benefits to its policyholders. 

In times, when car owners have a need, it is important to know how to claim car insurance. The following steps are expected to be followed

1. Inform the insurance company of the damage caused as soon as possible and give detailed information about it to avoid problems later.
2. File an FIR with the police about the incident depending on the type/reason of damage.
3. Take pictures of the incident/accident so that the insurance company will be able to examine the extent of physical damages and settle the claim accordingly.
4. Submit relevant and required documents to the insurance company so that the claim can be processed. Ensure you submit these documents and work with your insurer for a hassle-free experience. Following are some of the required documents –
   1. Copy of your car insurance policy.
   2. The First Information Report (FIR) from the police.
   3. Copy of the driver’s driving licence.
   4. Duly filled and signed claim form.
   5. Original repair bill, cash receipts, etc.
   6. Copy of your car’s Registration Certificate (RC).
   7. Medical receipts in case of physical injuries.
5. Next is to get the car repaired. Now, you can either take the car to a garage for repairs, or you can ask the insurance company to get the car fixed. If the claim gets approved, you will either be reimbursed or compensated for the loss accordingly.
6. In case your car is stolen, follow the process of informing your insurance company and file an FIR at the local police station. Submit documents such as the RC, your DL, FIR, etc., to the insurance company. If the police are not able to trace the car within a reasonable time frame, they will issue a non-traceable certificate. The insurer will then settle the claim and pay the current market value of your car.

The following are some of the common reasons for claims getting rejected; if ever you need to file a claim, ensure that you follow this guide on how to claim car insurance and avoid common mistakes

If there is a delay in claim intimation

Every insurance company specifies certain time frames within which policyholders can claim damages to the car. If the claim is not raised within that time period, it is likely that it will be rejected. 

Fraud claims

The relationship between an insurance company and a policyholder is based on trust. A policyholder expects the insurance company to live up to the policy contract and promised benefits. Similarly, the insurance company expects the policyholder to abide by the policy terms and conditions and take good care of their car when travelling for work or when going on vacation. If a policyholder raises fraud claims against damages caused intentionally or due to negligence, their request is most likely to be rejected.

Drunken driving/Driving without a valid license

Driving without a valid driver’s license or driving under intoxication is one of the main reasons why car insurance claims can be rejected. Both of these actions are not only illegal but also harmful. Therefore any insurance company cannot approve the raised claim under these circumstances.

Lapsed car insurance policy

Every valid car insurance policy has an expiration date, which is why it needs to be renewed in time to continue enjoying the policy benefits. If you raise a claim while your policy has lapsed, your claim is likely to be rejected. 

Policy terms and conditions violated

Every car insurance policy comes with specific terms and conditions. Violation of the same is a high cause for rejected claims. 

Car damage is not included in the policy

In every car insurance policy, there are some exclusions. This means the insurance company does not provide coverage for those situations. So, any claim raised against exclusions will be rejected. 

Damage due to own negligence

All insurance companies expect car owners to take good care of their dream cars. Therefore, if a claim is raised against damage to car due to policy holder’s negligence, the claim is most likely to get rejected. 

Chola MS car insurance guarantees an instant, smooth, and hassle-free policy purchasing process that makes building a long-term relationship with the safety providers of your car very easy.