Insurance is mandatory for all motor vehicles in India. The policyholders need to be careful as the claim is subject to settlement terms and conditions. Otherwise, the claim could be rejected. Let's look into the reasons that usually lead to claim rejection:
* Most motor insurance policies are valid for one year. It needs to be renewed every year. People often forget to renew the policy. The insurance company is liable to pay the claim only if the policy is in force on the date of the accident. Nowadays, all major insurers have apps that will remind you about the date on which the policy has to be renewed. The claim can be raised through the app. Also, the status of the claim can be tracked through the app. There is also an option to raise your queries.
* A comprehensive vehicle insurance policy includes third-party and own damage (OD). Third-party cover is mandatory for vehicles to ply on the road. But this is beneficial only if a third party suffers financial loss due to your vehicle. This would not cover any damage to the vehicle. If you need cover for damage to the vehicle, OD coverage needs to be taken. The OD coverage would cover the damage to the vehicle caused due to various reasons such as floods, earthquakes, cyclone, and landslides. Coverage can also be availed for man-made calamities such as riots or acts of vandalism.
* Vehicle insurance claims will get rejected if there is no driving licence.
* If the accident is caused while driving under the influence of alcohol or drugs, you can't claim your insurance.
* The claim would be rejected if your vehicle, availing the policy for personal use, is used for commercial purposes, racing etc.
* It is also common for vehicles to be sent for repair works without informing the insurer about the losses, and claims filed later. Never do this as it would be difficult for the insurer to assess the damages and calculate the loss. You have to inform the insurer about the accident as soon as possible. The insurer would send the surveyor to the accident spot. The surveyor would check the damage and estimate the repair costs.
* The deductible is the amount that you would have to pay before the commencement of the formalities related to insurance coverage. This would be mentioned in the policy. For example, consider that your claim amount is Rs 5,000 and the mandatory deductible is Rs 1,500. So you would have to pay Rs 1,500 and the insurer will give the remaining Rs 3,500.
(The author is chief technical officer at Bajaj Allianz General Insurance)
