Motor insurance Reasons for Claim Rejections

Motor insurance- Reasons for Claim Rejections? | IVA insurance

What is Motor insurance? 

Motor insurance is a legal agreement signed between the policyholder and the insurance firm by which the firm covers the damage that arises due to any kind of man-made and natural disasters. According to the Motor Vehicles Act 1988, every vehicle running on Indian roads must have an active insurance policy in place. If not the rider has to pay a fine amount. 

The policy saves the policyholder from unwanted financial expenses during accidents or thefts. While Motor insurance policies have huge advantages, there are chances for the claim requests to be rejected by the insurance firm. 

Policy Renewal 

The basic reason for claim cancellation is the policy tenure expiry situations; hence the policyholder must be cautious about renewing the policy on time before expiry. People can use insurance aggregator sites like IVA insurance to renew the policy, or to buy a new one. It is possible even if the policyholder hasnt bought the concerned policy with IVA insurance.

Not just policy expiration, but there are several other scenarios where the request can be turned down by the insurance firm. Read below to know about the different scenarios, to stay safe with regard to insurance policies. 

Driver concerns

The drivers conduct at the time of the accident comes into consideration while processing the claim request. If the rider is found intoxicated or driving without the mandatory insurance documents the claim request is not honored. The reason for the decline is that these sort of actions are against the Indian Road Laws.  

Crossing the Geographic boundaries

The insurance firms in India provide coverage benefits for vehicles running with the Indian national countries. Hence if in any chance the accidents happen outside India, then the incident is not eligible for an insurance claim. 

Vehicle Modification 

People have the habit of adding accessories to the vehicle, i.e., some personalize their vehicles. In such cases, the policyholder must inform the insurance firm regarding the changes made in the vehicle. The policy by default provides coverage for the actual parts and accessories of the vehicle. Later the changes will be reflected in the benefits of the policy according to data submitted by the policyholder. 

Illegal purpose of use 

If it is found during claim investigation that the vehicle has been used for unlawful or illegal activities, such claims will be rejected. Also, that puts your position to acquire future insurance policies for your vehicles in jeopardy. Never utilize your vehicle to carry out any illegal activities. 

Delay in Report 

The report regarding the accident and the claim must be submitted to the insurance firm as soon as possible so that the insurance firm could carry out a proper investigation on the accident. The necessary procedures must happen with the required time period; else the claim request will be rejected. Some insurance firms expect their customers to inform before giving the vehicle for repair. 

Hope you have got a better idea on motor insurance claim requests. A rejected claim requests waste a lot of time you have put in. Hence make your claim requests knowing the limitations on the approval.

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