Car insurance is essential to protect your vehicle from unexpected accidents, theft, or damage. However, it’s not uncommon for claims to be rejected due to various reasons. Understanding the common mistakes that can lead to claim denial and knowing the proper process for filing an insurance claim is crucial for every vehicle owner. In this blog, we will discuss the top mistakes people make when filing insurance claims and how you can avoid them.
1. Failing to Report the Incident onTime
One of the most important steps when filing a claim is notifying your insurancecompany promptly. In case of theft, accidents, or any damage to your vehicle,you must inform your insurance provider within a specific time frame—typicallywithin 7 days. Delaying this process can lead to the rejection of your claim.
Ensure that you report the incident as soon as possible and submit allnecessary documents, including:
RC (Registration Certificate)
Insurance Policy
Pollution Certificate
Driving License (Valid and not expired)
These documents are crucial for your claim to be processed smoothly.
2. Providing Expired or IncorrectDocuments
Another common mistake is submitting expired or incorrect documents. Forexample, if your driving license has expired or your pollution certificate isoutdated, the insurance company may reject your claim. It’s essential to keepall necessary documents uptodate and submit them correctly at the time of theclaim.
Moreover, if you are driving someone else’s car or using an invalid license,the insurance company might not cover the claim. Therefore, always ensure thatyour documents are in order.
3. Not Transferring Insurance After Buying a Second Hand Car
When purchasing a secondhand vehicle, it’s vital to transfer both the ownershipof the car (RC) and the insurance policy to your name. Many people forget totransfer the insurance after buying a used car, which can result in a claimrejection if an incident occurs.
Additionally, if the vehicle has a No Claim Bonus (NCB) that you want totransfer, you’ll need to provide a request letter to the insurance companyconfirming the change of ownership. If the policy is not updated with the newowner’s details, the claim may not be processed.
4. Ignoring Pollution and Fitness Certificates
A common mistake is not having a valid Pollution Under Control (PUC)certificate or the vehicle fitness certificate. Many insurance companiesrequire these certificates to process claims. If your car lacks these necessarycertificates, especially after an accident or theft, your claim can berejected.
Always ensure that your vehicle is legally compliant with environmentalstandards, and keep these documents handy when submitting an insurance claim.
5. Failing to Update Changes in Vehicle Specifications (e.g., CNG Kits)
If you’ve installed additional equipment in your vehicle, like a CNG kit or anymodifications, make sure to update your insurance policy to reflect thesechanges. If your insurance company is not notified about such modifications,the claim could be rejected if the vehicle is involved in an accident.
For example, if you’ve converted your car from petrol to CNG but haven’tupdated the policy endorsement, the insurance provider might refuse to coverdamages resulting from the conversion. Always inform your insurer about anysignificant changes to your vehicle.
6. Misleading Claims (Exaggerating Damage or False Reporting)
Many individuals think they can claim for damages not caused by an incident orexaggerate the extent of damage in hopes of a larger payout. For instance, ifthe left side of your car is scratched, don’t expect to claim for damages onthe entire car if the accident only affected one part. Insurance companiesinvestigate claims thoroughly, and providing false or misleading informationcan result in a rejection.
Only claim for the actual damages that have occurred. If your car’s bumper isdamaged, for example, don’t try to claim for unrelated issues like windshieldcracks unless they are part of the same incident.
7. Not Filing an FIR for Stolen Car Keys or Lost Documents
If your vehicle is stolen or if you lose your car keys, you must file a FirstInformation Report (FIR) at the police station immediately. Without an FIR,your claim might not be processed, as the insurance company will see it as acase of negligence.
Furthermore, if your car keys are lost or stolen, many insurance policies offercoverage for the replacement of keys or locks. However, you need to have theFIR and proof of ownership in order to get reimbursed for such losses.
8. Not Following the Correct Claim Process
Each insurance company has its own set of procedures and requirements for filingclaims. Failing to follow these steps correctly can delay your claim or lead torejection. Some important points to remember include:
Inform the insurance company within thespecified time frame (usually 7 days).
Provide complete documentation (RC,driving license, insurance policy, FIR if applicable, etc.).
Submit the claim forms and additionalpaperwork as instructed.
Cooperate with the insurance company’sinvestigation process.
If you skip any of these steps or fail to provide necessary documents, yourclaim may not be honored.
9. Not Maintaining Proper Records of Past Claims
If you have previously made a claim, ensure that all information regarding thatclaim is accurately recorded. Failure to report past claims when renewing orswitching policies can cause problems later. Some companies may reject claimsif there’s a history of fraudulent or incomplete information regarding previousclaims.
Avoid These Mistakes to Ensure a Smooth Insurance Claim Process
When it comes to insurance claims, being diligent and wellprepared can make allthe difference. Make sure to follow the correct procedures, keep your documentsuptodate, and report incidents promptly to avoid the risk of having your claimrejected.
Additionally, always ensure that your insurance policy reflects any changes toyour vehicle, including modifications, and never exaggerate or mislead theinsurance company regarding damages.
If you have any questions about car insurance or the claims process, feel freeto leave a comment below. Stay informed, stay safe, and ensure your vehicle isproperly covered at all times.
Remember: A little preparation can save you a lot of trouble in the event of an accident or theft!