Five Reasons Why Your Insurance Claims get rejected

As per the law, every owner in India who purchases a vehicle must purchase carinsurance as well. It is a mandate for every individual who owns an automobile in India. Having car insurance fulfills the legal liability and financial security of an individual.

When an insurance claim is rejected, it can get very difficult for people. Here are some reasons due to which your car insurance claim can be rejected.

Damages which are caused Not Because of a Disaster 

Many insurance companies offer damages caused by a natural disaster. Before purchasing car insurance policy, make sure you know the disasters which are offered in your policy.If your vehicle is damaged due to an event not covered by the insurer, your claim can be rejected. In most of the cases, the vehicle is insured against many natural disasters. The insurer also shares the covered natural events in the policy paper. The car insurance, many policies cover damages in case of an accident. If the damages caused to the automobile are not due to traffic, the company can reject your claim.

Non-disclosure 

At the time of car insurance, the insured and the insurance company have an agreement. In the agreement, the insured agrees to reveal all information at the time of purchasing the insurance or when he/she filesa claim. If the insurer finds out that the insured has provided any false information, the claim would be rejected immediately.

Exclusions

Every insurance policy comes with terms and conditions.There are many terms and conditions in which your claim can be rejected. For example, if your automobile is insured against theft and you leave your car unlocked, the insurance company can reject your claim because it was your negligence that caused your vehicle to be stolen. You should understand all the events included and excluded in the insurance policy thoroughly. Some of the exclusions in the insurance policy are as given below;

• Any damage caused by continued rain, sun or an arid land.
• Any damages or theft caused due to the negligence of the owner.
• Any damage caused by a natural disaster which is not common in the region and is not included in the insurance policy.

Fraudulence

If you behave to be fraudulent, or your actions appear to be as such, the insurance company can reject your claim. If you try to deceive or in any situation have deceived the insurer, the company can take strict actions against you and also reject your claim. It can also involve the police authority and the insurer may charge you with a criminal offence. Before the insurer processes the claim, the company makes sure that all the information provided by you fulfils the terms & conditions. Make sure you provide the correct information to the insurer and also cross-check it once before your apply for a claim.

Inactive Policy 

The insurance company provides the insurance plan. They have the right to make any changes to the policy as well. An insurance company include some subtexts in the insurance policy. This gives them privileges to modify, alter or even cancel the policy. In other cases, the insurer can cancel the policy if the insured has not paid the insurance premium even after many warnings. If the insured has not provided complete and accurate information, the insurer can cancel the policy.