If you have got into an accident it’s your insurance companies duty to compensate you for the damages. However, in case of any suspicious activity the claim may get rejected which can be costly and frustrating. Insurance companies settle claims in case of natural perils, fire and theft, but the company also has the right to exempt a claim.
Here are few common reasons why motor insurance claims are denied:
- If the vehicle is overloaded with excess passengers or goods than the number of seats or vehicle’s capacity resulting in loss or damage to the vehicle.
- Damage to the tires of the insured vehicle except when the damaged is caused at the time an accident.
- Electrical or mechanical failure due to damage to the insured vehicle.
- An unlicensed person driving the car is responsible for the damages to the insured vehicle.
- If the motorist is using the vehicle for other purposes which are excluded from the insurance policy (for example teaching someone to drive).
- Any accident taking place outside the geographical area which is not listed in the policy.
- Driving the vehicle and caused an accident outside the public road i.e. road that is open for general public.
- Failure to obey traffic rules, have been involved in a felony or fleeing from the scene after an accident.
- Insurance companies do not accept insurance claims made 3 years after the accident.
- If the contract was made based on false or misleading information.
- Any damaged caused to the insured vehicle due to an accident when the driver was under the influence of alcohol or drugs which altered control of the vehicle.