Owning a car insurance policy is mandatory to drive a car legally on public roads in India. The main benefit of having an insurance policy is that you can expect your Insurance company to reimburse you for the damages suffered by you during the insurance period.
However, in some cases, the company may reject your car insurance claims. Getting your precious car damaged is not a good feeling, but having your claim rejected and being forced to pay out of pocket is even worse.
So here are 9 common mistakes you should avoid while undertaking the Car Insurance Claim Process to ensure your Car Insurance Claims are processed successfully and quickly.
Avoid These Car Insurance Claim 9 Mistakes
1). Driving Without a Driving License
Start off with a very simple mistake - it is against the law in India to drive without a valid Driver’s license. This means that if your license is expired or not valid during the time of the accident, your insurance company will not be able to process your claims.
This also applies to learner’s licenses - a person with a valid driving license should be present in the front seat of the vehicle to successfully make a claim.
2). Forgetting or Failing to Transfer the Vehicle Insurance Policy
- When buying a second-hand vehicle, it is supremely important to ensure that the vehicle's existing insurance policy and registration are transferred to you. Failing to notify the insurance company within 14 days of purchase may lead to your claims being rejected.
3). Failing to renew PUC certificate
- A PUC (pollution under control) certificate is a document certifying that the vehicle is within the admissible emission limits of India. Using a vehicle with an expired or invalid PUC certificate is illegal. The IRDAI mandates that a valid PUC certificate must be present during the renewal of any motor insurance policy. So ensure that your PUC is up to date or else your car insurance claim may be rejected.
4). Breaking traffic laws and regulations
- Following traffic safety laws is a good idea both for your personal safety and for ensuring the success of your insurance claims.
- Actions such as driving under the influence of alcohol or skipping red lights can invalidate your insurance claims.
5). Mistakes in the vehicle’s Registration Certificate (RC)
- You must always ensure that your vehicle documents, especially PUC, RC, Tax Certificate, and fitness certificate are all valid and most importantly in the name of the vehicle owner. Having the incorrect name in any document is a surefire way to get your Car Insurance Claim dismissed.
5). Making mistakes while declaring No Claim Bonus (NCB)
- Under many policies, if you do not make an insurance claim for a particular year, you get rewarded with a no claim bonus (NCB). Essentially, the insurance pays you a bonus for not claiming any damages during a given year.
- However, wrongfully declaring an NCB on the previous policy may lead to any Car Insurance Claim you made under the new policy being rejected.
6). Delaying Late Claim Process & Communication
- If you are trying to file a claim for accident or theft, it is important to be prompt in altering the insurance company. Be sure to document the condition of the car before sending it for repairs.
- It is also a good idea to send all requested documents within the allotted timeframes.
7). Modifying the Car without notifying the Insurer
- Improving your car by adding parts like CNG or LPG kits is fine and dandy so long as you notify your insurance provider about the upgrades.
- Generally, the insurer will charge you a small premium for these additions. Pro tip you can buy these add-ons via a Car Insurance Claim Online portal. Once paid, these modifications will not have any impact on your future damage claims.
8). Misusing the insured vehicle
- Each policy defines the intended uses for the insured vehicle. For example, a bus can be covered by a commercial policy, while a family vehicle can be covered by non-commercial insurance. Be sure to carefully read the terms of the insurance and ensure that your use is covered under the policy. The Car Insurance Claim Process will thoroughly examine the case facts before deciding on the fate of your Car Insurance Claim.
9). Filling Incorrect information in the Claim Form
- Providing false or misleading information on your claims form can lead to the insurance company rejecting your claim. Whether you file your Car Insurance Claim Online or Offline - always be truthful about the person driving the car, the people present, and any other information requested by the car insurance company.
- Claims Inspectors will ensure that the answers written by you are an accurate retelling of the events that transpired.
Though slightly unrelated to the 9 mistakes listed above, following these two points will save you a lot of hassle in the future.
Always Renew your Policy on Time: Renewing your policy before it expires ensures that your vehicle is covered at all times. Any damages suffered are reimbursable by the insurance company.
File a First Information Report (FIR): Amidst the varied negative feelings involved with car accidents, theft, or any other incident, you need to be vigilant and file an FIR with the nearest police station. Doing so will only speed up your claim process.