Car insurance is a regulatory norm as per the Motor Vehicles Act. Every vehicle is required to have at least third-party insurance cover. But most individuals consider insurance as a burden. This isn’t true. A motor insurance policy comes in handy in case of repairs, damages and accidents.
The coverage of your policy depends on the type of insurance cover that you opt. It can be either a third-party or comprehensive plan. Third-party plans cover the damages, either to the vehicle or person of a third party. It is relatively restricted in terms of the protection it offers. A comprehensive policy, on the hand, insures the policyholder along with any third-party liability. Along with it, theft, damages and even repairs are insured under your comprehensive insurance cover.
While you can buy either type of car insurance online, there may arise problems when filing a claim in certain situations. Let us look at a few cases when your insurance claims might get rejected –
Lapsed Policy
A lapsed insurance plan is equivalent to no insurance cover. In case the event of theft or loss or any damage occurs even a single day post your insured period, the insurance company will reject your claim. So it is always advisable to set a timely reminder to renew your insurance plan before its expiry. You can alternatively opt-in for reminders that are sent by your insurer via email or text messages.
Acts prohibited by the Motor Vehicle law
Any acts performed by the driver which are prohibited under the Motor Vehicles Act shall lead to the claim to be rejected. For example, an accident or damage caused by the driver under the influence of alcohol will lead to your claim being rejected. Also, when the driver does not possess a valid driving license is a violation of the law will have the same effect on your claim application.
Modification in your car
At the time of availing comprehensive or third party car insurance, the insurer checks the specifications of your car. It is done so that the insurer is aware of the risk that has to be covered. If any modifications are undertaken by you and not intimated to the insurer subsequently, the claim may be rejected. This rejection is due to the concealment of changes that were supposed to be intimated to your insurance company.
Violation of policy terms
In case you violate any of the terms as mentioned in your policy document, your claim can get rejected. This makes it essential to carefully read the terms and conditions of your policy when buying one.
Consequential Loss
Any damage to your vehicle arising out of an already damaged part which is primarily uninsured as per your policy will end up in rejection of your claim application. It is observed in the case of spares that are interdependent in case of your engine. Make sure you opt for an engine protection add-on to avoid damages due to such factors.
To sum it up, make sure you are familiar with the terms as stipulated in the general insurance policy wordings for your car. This will ensure a hassle-free claim process and get you the maximum amount of insurance cover in case of an accident or damage.
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