When you buy a car, you also safeguard it against damages and theft by buying a comprehensive cover that also provides for the mandatory third-party car insurance i.e. insurance against damage to third party and their assets due to your car. Herein it is important to note that the comprehensive car insurance policy covers only collision, accident, theft, damage as a result of natural calamities in addition to third-party liability.Nonetheless, it does not provide for damages as a result of general wear and tear, breakdown etc.
But there are cases when even after getting your car insured, your car insurer may reject the claim made for some of the reasons specified below:
1. When you intimate the car insurer of the accident after getting the car repaired on your own: It is a very common mistake that is committed by many. Ideally one should intimate the concerned insurer before getting the car repaired after it has met with an accident. In the event, the insurer deputes a personnel who comes over to verify, inspect and ascertain the degree and cost of damage and helps you in getting the best deal for repair of the damaged car.
This is as though because if the event is intimated after the repairs to the four-wheeler are made, insurer will not be able to trace back the damage caused due to accident in exactness. And hence your car insurance claim is most likely to get rejected.
2. Claim intimation has to be notified within a specified timeframe: In most of the cases, the claim intimation is to be made between 48 to 72 hours and if the deadline is crossed, it may lead to claim rejection by the insurer. Consequential losses are also not entertained by insurance companies, say you damage your car and despite that continue to drive it, which results in further damage, claims made against such damages are bound to be denied.
3. Installed CNG or LPG kit not covered while buying car insurance: Whether or not the damage relates to the CNG or LPG kit, you face the risk of claim rejection if the LPG or CNG kit installed in the car is not the part of the comprehensive car policy purchased.
4. When car insurance policy is not transferred in your name in case of a second hand or used car purchase: As and when you purchase a second hand or used car, make it a point to get the policy document transferred in your name as else when such transfer formalities are left undone, the policy remains null and void and will not help you get the claim in case of some unfortunate event.
The transfer of policy in your name or the new owner of the vehicle can be done by visiting the insurer and showing the new RC or registration certificate in your name.
5. Valid driving license is a must: The driver who was driving the insured car at the time of accident should have a valid Indian driving license plus should not be under the influence of drugs or alcohol. And if it all, the same is proved, you stand the chance of claim rejection by the insurer.
6. Claim rejection can also be made if a private car is being used for commercial reasons: In case, the vehicle booked by you as a private car is now being used commercially to either ferry passengers or goods, your claim can be rejected.
There can be other reckless or careless reasons on your part which can lead to claim rejection such as in a case when the car was found to be parked in a no-parking zone etc.