Why Insurance Claims Are Denied After Car Accidents: Full Details

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Pune, 18th June 2024: In India, the daily occurrence of road accidents leads many to file insurance claims to cover repair costs. However, these claims are often rejected by insurance companies. Understanding the reasons behind these denials can help policyholders avoid common pitfalls. From issues related to used car insurance transfers to the necessity of a valid driving license, several factors can lead to claim rejection. This report delves into the specific reasons and provides tips to ensure claims are approved when needed.

Many people prefer buying used cars due to the high cost of new ones, but they often delay transferring the insurance. If an accident occurs during this period, the insurance company can deny the claim. Ensuring that the insurance is promptly transferred to the new owner is crucial.

Having a valid driving license is another critical requirement. If a person drives with an expired or invalid license and gets into an accident, the insurance claim will likely be rejected. “It’s essential to always have a valid license while driving to avoid any complications with insurance claims,” says insurance advisor Amit Sharma.

Additional reasons for claim denial include using a private car for commercial purposes, modifying the car without informing the insurance company, and delaying the notification of an accident to the insurer. These actions can all result in the rejection of the insurance claim.

To avoid having a claim denied, it’s important to follow certain practices. People should refrain from making claims for minor issues and avoid attempting to get fraudulent claims approved. If the insurance company discovers fraud, not only will they reject the claim, but they may also blacklist the policyholder.

By understanding and adhering to these guidelines, car owners can ensure their insurance claims are more likely to be approved, providing much-needed support in the event of an accident.