Insurance claim

11 reasons that can put a screeching halt in your insurance claim

3 min to readCost optimisation
Who wouldn't want their beloved car to stay in top condition, just like the day they brought them. But we all know that's not possible. Be it rash drivers or poor roads, there are infinite reasons out there for the unforeseeable to happen. Car insurance is a smart financial decision to take. If you ever need to make a claim because of a car accident, your car insurance will cover you and your family. However, insurance companies can deny a claim and ruin your day. That's why it is important to know the common reasons that can deny your claim.
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Delay in intimating the claim After any kind of accident, loss, or damage to your car there is a specific time frame in which you are supposed to intimate the insurance company about your losses. Failure to do this in time or even the slightest delay is enough for your insurance claim to get rejected. That's why claiming insurance is a meticulous and time-sensitive process that needs to be followed with diligence.

Trying to cover multiple damages in one single damage form This is one of the common reasons for insurance claims to get rejected. People often try to cover multiple or previous damages in one single damage form, which backfires upon them, resulting in rejection of the claim. If any of the information is declared falsely, incomplete or undisclosed, the insurance company may reject the claim and suspend policy benefits.

Expired driving license Always drive with a valid driving license. If you get in an accident with an expired driving license, you are considered equally responsible for the accident, even if the other party is at fault. The insurance company has the right to back out and not assist you in any way possible.

The reasons mentioned in the claim do not match the damages Being honest about the accident details works best for everyone. If it was your fault, there is no harm in accepting it. But hiding the facts with a made-up story can arouse the insurance agent's suspicion. If the insurance company finds out the truth, they can reject your insurance claim.

Incorrect fuel or additives If you fit in CNG or LPG to get better mileage, and not inform the insurance company while renewal can result in your claim being rejected. That's why it's important to always drive your car with the right fuel or additives.

Driven in waterlogged places It is never wise to neglect the company's car manual and drive the car in flooded places even after receiving a warning that your car can possibly stop functioning. In such cases, the insurance claim will not be acknowledged.

Driving the vehicle in spite of vehicle warning signals Always keep your eyes on the warning signals on your car's odometer. If you drive the car for too long, even after receiving an oil pressure warning light, your car will cause some problems due to a loss of oil pressure on the engine. In such cases, the insurance company will not help with any repairs.

Fitness expiry for commercial vehicles In the case of private vehicles, the fitness certificates are valid for 15 years and thereafter for every 5 years. In the case of commercial vehicles, the fitness certificate is issued for a new vehicle for 2 years and subsequently renewed for one year. If you crash a vehicle without renewing the fitness certificate, the insurance company has every right to deny your claim.

Pre-existing damages are not covered If you keep on driving a damaged car, it will only worsen the condition of your car and lead to a very expensive repair. In such cases, the insurance will not accept your car insurance claim since pre-existing damages are not covered.

Damages caused by rusting are not covered Rust is caused due to normal wear and tear of a car after day-to-day use. Car insurance is generally provided for unforeseen events, whereas rusting falls under expected outcome and is not considered under insurance policies.

General wear and tear/ hairline scratches not covered In general, scratches are common on cars. Almost all cars have scratches on them and thus car insurance policies do not cover them. Also, filing a claim can cost you more money and time than getting the scratches repaired.

Hence, there are a number of reasons for the insurance company to reject your claim, leaving you with the only option to begin the entire process again. That's why, when you lease a car with ALD, you get freedom from the hassles of insurance claim management. We manage everything for you to ensure your insurance claim gets processed seamlessly. All you have to do is raise the claim request on My ALD app by providing us with all the required information.

Published at 25 February 2024
25 February 2024
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