Tips to get hassle free claims settlement on your motor insurance policy

Owning your first car or any car for that matter is an exhilarating moment. People, unless they are uber-rich and have a lot of money to waste, do not usually buy a car without proper research. After days of research, they zero in on a vehicle that offers the best mileage and is fuel-efficient and who can forget that it has to be the right color. They want all of this in the budget that they have set aside for it. The same diligence should ideally be applied while buying motor insurance.

Why do you need car insurance?

We are generally designed to think positive and be optimistic, and in our inflated sense of optimism, we tend to overlook the fact that life is full of uncertainties.

What will you do if your car gets damaged by a biker speeding up to cut in from the other side of the road? Sounds scary, right? As much as we wish that nothing of this sort should ever happen to you or your car, well, it is always sensible to prepare yourself for adverse circumstances. It is stressful enough to see your beautiful car damaged in front of you; you would not want to add the stress of the additional expenses on its repair. So, save yourself from this by opting for suitable motor insurance.

So, now that we have established the reason why we should get motor insurance, everything should be fine, right? If you're involved in an accident where you end up damaging your car, your insurance company will take care of your expenses, so you don't need to worry, right? I wish it was as simple as it sounds. We can agree that getting a motor insurance does alleviate your worries to some extent, but did you know that there are chances your insurance company may not honor your car insurance claim? Shocking, right? Well, don’t fret, because your company will do that only under certain conditions, and they are avoidable. If you manage to avoid them, you will get hassle-free claim settlement on your motor insurance policy. So what are the circumstances under which your company may reject your claim?

• No knowledge about the policy: There is a reason why you are asked to read any document repeatedly, especially any document that requires your signature. The policy document tells you when and how to file a claim and what exactly would be covered under the insurance. All terms and conditions of the car insurance policy are mentioned in the document. Even then, many people choose to ignore this, and without giving the document a thorough read, sign away at the end of the page that says ‘I have read and agreed to the terms and conditions.’ Since policy documents are written in a way that relieves the car insurance companies from a financial and legal liability that may arise post signing a contract with you, it is crucial that you read the document thoroughly. Ignoring policy documents, missing certain points, could land you in major trouble. So how do you solve this? Just read your policy document carefully, and you will never have to worry about your claim getting rejected.

• Pay your premiums on time: Procrastinating does not help anyone, at least not in this case. Pay your car insurance premiums on time, and your claim will not get rejected.. Any insurance company will not entertain a car insurance claim when it comes to a lapsed insurance policy. Apart from this, you may also lose over the no claim bonus if you don't renew your motor insurance policy within 90 days from its expiry. And if your car meets an accident during the lapsed policy period, you might have to spend a lot of money. You don’t want that? Well, nobody does. The solution is easy- keep a keen eye on your car insurance policy expiry date, and renew it on time.

• Don’t drink and drive: It is a bit ridiculous to believe that the insurance company would pay for your damages if you put your life at risk on purpose by drinking and driving. Driving under the influence of alcohol or any narcotics would straightaway lead to the rejection of your claim because the law prohibits it. According to the law, if you drink and drive, and are caught, you will be liable to pay a fine and/or spend a sizeable amount of time in jail. You can’t expect your insurance company to reimburse  after you have wilfully committed a crime.

So, how do you deal with it?

Simple, don’t drink and drive. If you are drunk, get a cab. Your insurance company will not pay for you if you get into trouble while driving under the influence.

• Don’t invite trouble by violating laws: Did you forget to transfer the car ownership in the insurance policy? If you have forgotten to transfer the car’s ownership under your name in the insurance policy, there is a big chance that your claim would be rejected. It will be considered invalid in case any claim does arise. So, how do you solve it? By not acting lazy and informing your insurer on time. It is easy to get the documentation, so there is no reason why you should not do it.

• If you install an LPG/CNG kit, inform your insurer: It is a smart thing to install a LPG/CNG kit, but don’t forget to inform your insurer, else your claim will be rejected in case of an accident.

• If you are using your private car to make money: You bought a car for your personal use but now you are doubling it up as a cab, without informing the insurer. No, it is not the smart thing to do, because if your car meets with an accident, your insurance claim will be rejected right away. If you are using your car for commercial purposes, get a passenger-carrying car insurance or goods-carrying car insurance. The only solution to this problem is to get an appropriate car insurance policy if you wish to use your car for commercial purposes.

Take care of the points mentioned above, and you will reduce the chances of your car insurance claims getting rejected drastically.