Being careless while traveling on the road can lead to accidents. In such cases, auto insurance compensates the vehicle and others for financial loss.
However, minor mistakes by motorists can lead to insurance companies rejecting the claim. What are they? What precautions should be taken to avoid those mistakes? Let’s find out through this article.
Insurance needs to be renewed! A vehicle should not be on the road without an insurance policy. In India, it is mandatory to have an insurance policy for it when buying a car.
However, many people are careless when it comes to restoration. Some forget to renew their insurance policies. The severity of any problem is understood only when it occurs.
The insurance company pays the claim only if the policy is in force at the time of the accident. So, it is better to renew the policy before it expires.
Insurance companies offer the opportunity to renew the policy through websites and apps. The app provided by the insurance company must be kept on the phone.
It is very useful to occasionally know the claim’s status and clear any doubts, including when filing the claim.
Only if you have full coverage!: An auto insurance policy has two sections. One is third-party insurance, which applies when our vehicle causes damage to other people or property.
This insurance policy is a must for the vehicle. This insurance does not cover any damage to your car. For this purpose, a comprehensive damage policy should be taken.
Some take third-party insurance and claim for damage to the vehicle. But if a comprehensive policy is taken out, one can get compensation for the damage to the car in case of accidents, floods, cyclones, earthquakes, landslides, etc.
Without proper documents: Some people drive without an appropriate driving license. If an accident happens during such a time, the insurance company will not compensate.
According to the Motor Vehicles Act, one cannot drive without a valid driving license. Some insurers say that the vehicle should also have an emission control certificate.
Under the influence of alcohol: It is a crime to drive under the influence of alcohol. Any accident in such a case will have dire consequences. Moreover, insurance companies refuse to compensate for damage to the vehicle.
If not informed immediately?: In an accident, the insurer should be notified immediately. Many people do the repairs themselves without paying attention to this matter.
Then, the claim is filed. In such cases, there is a chance that your claim will be rejected. Hence, the insurance company should be informed immediately after the accident.
The counseling center’s instructions should be strictly followed. Now, some insurance companies ask you to send accident details, pictures, and videos of the damaged vehicle within the app.
Some use it as their vehicle and rent it out. However, the car should only be used for the purposes specified in the policy.
Insurance companies decide the premium based on the type of vehicle used. Therefore, if a personal vehicle is used for commercial purposes, the insurer may deny compensation in case of an accident.
Auto insurance also has some exclusions. Be sure to know about these while taking the policy. In addition to the basic policy, additional policies or riders can be added, as per the requirement, and claimed.
For a hassle-free claim process, getting the vehicle repaired at a center in the insurance company’s network is best.
Otherwise, if you repair yourself elsewhere, complete the claim form and submit all the necessary bills. The insurance company will check the details and provide the compensation.