Reasons Why Motor Insurance Claims Get Rejected – Important Tips for Vehicle Owners
Many vehicle owners believe that once they purchase motor insurance, their claim will always be approved after an accident. However, in reality, failure to follow certain rules and procedures can lead to claim rejection.
Understanding these common mistakes can help you avoid financial loss and make the insurance claim process smooth and hassle-free.
1. Delay in Informing the Insurance Company
After an accident, informing the insurance company immediately is very important. Delayed intimation may lead to claim rejection.
What You Should Do:
- Report the accident as soon as possible
- Submit all required documents on time
- Keep accident photos and videos safely
2. Repairing the Vehicle Before Survey
Many customers repair their vehicles before the insurance survey is completed. This makes it difficult for the surveyor to assess the actual damage.
Important:
- Inform the insurance company first
- Wait for the surveyor’s inspection
- Start repairs only after approval
3. Keep All Documents Valid and Updated
The following documents must always be valid:
✅ RC Book✅ Insurance Policy✅ PUC Certificate✅ Driving License✅ Permit (For Commercial Vehicles)✅ Fitness Certificate
Expired or invalid documents may result in claim rejection.
4. Valid Driving License is Mandatory
If the driver does not have a valid driving license, the insurance company may reject the claim.
Examples:
- Expired license
- Wrong vehicle category license
- Commercial vehicle driven with private LMV license
5. Do Not Hide Previous Claims or Information
Providing false information or hiding previous claims can create serious problems during claim settlement.
Avoid:
- Wrong NCB declaration
- Fake bills
- Misleading information
- Fraudulent claims
6. Inform the Insurance Company About Vehicle Modifications
If you install accessories such as:
- CNG Kit
- Alloy Wheels
- Body Kit
- Music System
you must inform your insurance company.
Otherwise, claims related to those accessories may be rejected.
7. Improper Use of Vehicle
Using a private vehicle for commercial purposes or using a commercial vehicle improperly may lead to claim rejection.
Example:
- Using a private car for passenger transport
- Misuse of commercial vehicle
8. Driving Under the Influence of Alcohol or Drugs
If the driver is found driving under the influence of alcohol or drugs, the insurance company can completely reject the claim.
Safety Tip:
Always follow traffic rules and drive responsibly.
9. Transfer Insurance Policy After Buying a Used Vehicle
When purchasing a second-hand vehicle, transferring only the RC is not enough. The insurance policy must also be transferred to the new owner’s name.
Otherwise, the claim may be rejected.
10. Third-Party Insurance Does Not Cover Own Damage
Many people misunderstand third-party insurance coverage.
A Third-Party Policy only covers damage caused to another person or vehicle. It does not cover damage to your own vehicle.
Better Options:
✅ Comprehensive Policy✅ Zero Depreciation Policy
11. Zero Depreciation Policy Does Not Guarantee 100% Claim
Many customers believe that a Zero Dep policy guarantees full claim settlement. However, claim approval depends on:
- Policy terms and conditions
- Survey report
- Type of damage
- Supporting documents
12. Only Fresh Accident Damage is Covered
Insurance companies only cover damage caused by the current accident. Old dents, scratches, or previous damages are usually not covered.
13. Keep Photos and Videos as Proof
After an accident, always collect proper evidence:
📸 Vehicle photos📸 Close-up damage photos📍 Location photos🎥 Videos
These proofs help during claim processing.
14. FIR / NC May Be Required in Major Accidents
If:
- Third-party damage occurs
- Serious injuries happen
- Major vehicle damage is involved
then filing an FIR or NC can be helpful and sometimes necessary.
Conclusion
Motor insurance is not just a legal requirement; it is financial protection during emergencies. However, small mistakes can result in claim rejection and financial loss.
To Avoid Claim Rejection:
✅ Inform the insurer immediately✅ Keep all documents valid✅ Use the vehicle properly✅ Provide honest information✅ Maintain accident proof and records
Following these simple precautions can help ensure a smooth and successful motor insurance claim process.
SLS Insurance Services
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✔ Bike Insurance✔ Car Insurance✔ Commercial Vehicle Insurance✔ Claim Support✔ Policy Renewal Assistance
📞 Contact: 9819179553
