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Article - Car Insurance Claims: How To Crack Those Rejections And Denials!

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23 Feb 2016

Dreading the claim process? Heard of harrowing experiences from friends about how they had to toil for claims? Here is your chance to flaunt a different story altogether - a check list to ensure a rejuvenated and uncomplicated claim process!

No one ever likes talking about an exam they failed. But not knowing where and how you went wrong is the worst! There are good, bad and ugly claims. While most car insurance claims get processed, the ugly claims are the worst ones – the rejected ones.

And, in most cases, not knowing what caused that rejection or failing to understand it clearly can drive you nuts! Let’s face it – it’s money at the end of the day; money which you spent at a time of crisis hoping that your car insurance policy will help you get it back eventually. But when it doesn’t happen, it’s better to not get into the ‘why me’ and ‘I don’t deserve this’ and look at comprehending those reasons better, minimizing reasons to get your future car insurance claims rejected. For which you need to know what you are fighting, which brings us to this.

"Car Insurance Claims - The whys and hows of claim rejection."

Let’s get the basic right. To start with, insurance covers only accidents, theft and third party damages. Claims raised to cover anything else WILL be rejected! This means you can't possibly expect the insurance company to pay for the regular breakdown of your loving car as it gets older and goes through its cycle of normal wear and tear.

How insurance companies prefer to approach claims requests

It helps knowing that you cannot always expect complete support from the insurance company in terms of claims. There are just too many points mentioned in the policy wordings and the insurer can take help from any one or two in it to help advocate their case of claim rejection. (especially if you have been oblivious to the conditions in your policy wordings).

In such a scenario, it’s better to have an advisor in the loop (in the form of an agent or broker). For eg, as a broking agent helps decode the claim process from the insurance company’s end and yet stand to represent the customer thereby ensuring a better success rate than claim requests processed through agents or individual policy holders.

Few points that may prove good to know

Buying online

You may not have to produce any documentation that you may have to do when you buy the policy otherwise. But that NEVER means you can provide false information of any necessary or specific document. Because, in the event of a claim, if the information provided proves to be fake/false, it is highly likely to get your claim rejected.

Keep your gadget cover invoice Safe

If you have jazzed up your car with electrical gadgets and wised up right then to cover the gadgets with any add-ons, then make sure you keep your invoice/receipt with you for future references. You don’t want to lose a claim just because you did not safe-keep your gadget cover invoice.

48-72 hours to prompt any accidents or incidents

The specified time to report any accidents or incidents prompting a claim is 48 – 72 hours. Even though failing to do so wouldn’t necessarily mean that your claims will get rejected, if something were to happen to the car during this time window, you could stand to face rejection of the claim even for the original accident.

Give only the necessary details

As weird as it may sound, make sure you give only the necessary details. Like the Miranda laws, you never know when during a claim request, what you say can get used against you, leading to disappointment.

The Miranda Laws of Insurance Claims

1) You have the right to remain silent.

2) Anythings you can say and will be used against you in the court of Insurance Companies especially during claim rejection

3) You have the right to talk to an advisor and have him present with you not just while you have to make a claim but always!

4) If you cannot afford a broker, an agent willbe appointed to represent you by the insurance company before policy issuance if you wish.

5) You can decide at any time to exercise these right to have your questions answered or to maky any statements.

Do not forget to file an FIR however bad the situation gets

If you have run into the worst misfortune of facing a ‘stolen car’ situation, then there is nothing worse than that. Your lack of clarity in mind is highly justified at such a point but do not forget to file an FIR however bad the situation gets. Because the absence of an FIR may mess up or delay the whole claim procedure.

A few unintentional mistakes that will result in your claim rejection

You forgot to transfer it to your name in the policy copy

1. You have a new car (be it branded or a second hand) and you forgot to transfer it to your name in the policy copy – trouble. The policy is considered null and any claims made would be rejected.

If you got your Car fixed, repaired and mended without informing the insurance company

In case you your car ran into trouble and you got her fixed, repaired and mended without informing the insurance company. You thought, ‘Ah that’s okay. I’m anyway only gonna get it reimbursed. I can inform and claim once I get the car repaired and ready’ – uh huh. Nada. This becomes a difficult process to keep track of for the car insurance company ( to find out which part of the repair done was actually from the accident) and thus, they can only reject the claim. Especially consequential losses which do not occur from an accident but results after it – no can do.

Private car and have been using it for commercial purposes

If you have a private car and have been using it for commercial purposes, if your car was damaged while you had parked her in a no parking zone, if you stuffed your car with passengers more than the allowed seating capacity and something happened – all reasons enough for the insurer to deny your claims.

Installed a CNG/LPG kit in your car but did not declare it

You made the smart choice of installing an CNG/LPG kit in your car but did not declare it while buying your policy will not help your claims made.

Everything said and done, it’s not the end of the world. You do not have to accept a car insurance claim denial for the stated reasons as the final judgment. It can always be contensted through the right channel and with the help of the right advisor.

About Navnit Insurance Broking Private Limited

Navnit Insurance Broking relationship with our customers lies at the heart of our business philosophy. We believe in understanding their needs and becoming their valued partners and advisors, committed to meeting their requirements at every stage of their lives.

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