Top reasons why car insurance claims are denied

We hear stories of sham insurance claims all the time in the news and they are increasing by the day. In most cases, career criminals are leaching to this kind of felony as a key source of illicit income. Over the decades there have been some really high profile occurrences of exposed scams including the infamous ‘Sukumara Kuruppu’ case in which he faked his own death by murdering his business partner in a ‘car accident’ for insurance money.

On the other hand, it can be overwhelming to be involved in a car accident, bear expenses of car repair, personal treatment, property damage or third party injury, if any, only to receive a denial from your insurance provider. Do not disregard the rejection or panic. Sometimes the reason could be as trivial as a miscalculation in coding or a factual error. With veracious paperwork and an in-depth understanding of your , you can even accelerate the procedure.

Listed below are top reasons why your car insurance claim can be rejected by insurance companies:

  1. Normal Wear & Tear:
  2. Natural deterioration due to regular use of a car is not avoidable and hence you cannot be indemnified against this. This wear and tear consists of weakening of engine, scuffing of brake, suspension, peeling of paint or slight abrasion of the interiors as well as minor dents or nicks to the exterior while use.

  3. Consequential Damage:
  4. Consequential Damage occurs when you use your car despite clear red flags. Driving along a flooded road when there is another option, knowing that it can lead to engine failure is one instance. Insurance companies show zero tolerance to claims of this nature.

  5. Personal Car Insurance Vs Commercial Car Insurance
  6. If you have bought a personal car insurance, but the accident has occurred when you were using your car for commercial purpose (like hiring it out as a cab or use for official trip), then your claim will be rejected without a second thought.

  7. Intoxicated Driver:
  8. Driving under the influence of alcohol or drugs is a crime. And insurance companies will only be happy to toss your claim to reject list if this allegation is proved.

Conclusion:

It would be unfair to curse and rave about your insurance company’s hardheartedness when there were many incidents in the past that made them extra vigilant. It would be a while before we all forget the notorious Lord Brocket case, in which Mr. Brocket dismantled his Ferrari and Maserati and sold the parts at black market before reporting the cars stolen to the insurance company.

We must remember that insurance companies’ bread and butter is mainly claim rejections. Delaying accident reporting, different names on RC and insurance policy, mishap occurring outside the policy’s geographical realm can all be causes for denial. So it is important to make our claim foolproof and honest so that there is no chance of rejection. Of course if you feel that your claim is unfairly overruled, you have an option to file an appeal.

GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

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Why Car Insurance Claims Are Denied Reviews

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  • National Insurance Car Insurance
    "Benefits should be increased"
    0.5 3.0/5 "Satisfactory"
    I feel National Insurance premium is higher, I paid the cost of Rs. 12,000 for per year policy. I took zero depreciate plan it has bumper to bumper. They need to improvement on the cash less network, they should tie up with local networks with brand recommend. I have ford figo car its just two years old for that they gave me only 60% of cover.
    Was this review helpful? 0
    , vadodara
    Reviewed on May 25, 2019
  • HDFC Ergo Car Insurance
    "I don't have any claim experience"
    0.5 3.0/5 "Satisfactory"
    When i purchase my new car, the dealer has suggested me to take the car insurance policy from HDFC Ergo. Its not zero depreciation policy which covers only for 60% and i never had any claim experience. I do not remember about the premium amount and the dealer has taken care of all the formalities.
    Was this review helpful? 0
    , hyderabad
    Reviewed on May 24, 2019
  • Reliance General Car Insurance
    "Good Policy"
    0.5 5.0/5 "Blown Away!"
    Once i claimed with the reliance car insurance and the experience was good. Actually my friend has recommended the car insurance policy from reliance since he is working as a agent and he made the payment and done all the procedure. I have paid the premium amount of Rs. 35000 and its a zero depreciation policy. They have processed the claim within 1.5 months.
    Was this review helpful? 0
    , hyderabad
    Reviewed on May 24, 2019
  • United India Car Insurance
    "Good service"
    0.5 4.0/5 "Great!"
    I had a claim with the car insurance policy with the UNITED INDIA INSURANCE, the experience was not up to the mark, the agent did not experience me properly about the policy coverage it there is accidental policy or damage policy covered or not, the premium amount i use to pay up to 18000-19000 an year i have taken this policy 15 days before of my expired car insurance date, on 23 January 2019 i took this loan.
    Was this review helpful? 0
    , pune
    Reviewed on May 23, 2019
  • ICICI Lombard Car Insurance
    "Average insurance"
    0.5 3.0/5 "Satisfactory"
    Recently i have purchased a four wheeler insurance from ICICI lombard for my tractor. That insurance amount which i have paid for three years. I have paid the premium amount of Rs. 40000. My showroom has taken care of the insurance procedures. I do not have any claim experience so far and I'm not sure about the coverage value. Actually this is a third party insurance.
    Was this review helpful? 1
    , bangalore
    Reviewed on May 21, 2019
  • New India Car Insurance
    "GOOD"
    0.5 5.0/5 "Blown Away!"
    I had 2 times claim with the NEW INDIA ASSURANCE where the customer support is good and i got the claim on time also the process was 1uick. The premium was nominal also the IDV value is good. The coverage is for zero depreciation with this insurance policy.
    Was this review helpful? 0
    , ghaziabad
    Reviewed on May 20, 2019
  • United India Car Insurance
    "EXCELLENT"
    0.5 5.0/5 "Blown Away!"
    I had a claim with the car insurance policy with the UNITED INDIA INSURANCE, the experience was good also i got 100 percentage claim, process was good and quick. It is a zero depreciation, premium and IDV was given was good also it is satisfactory with this policy.
    Was this review helpful? 0
    , new delhi
    Reviewed on May 20, 2019
  • Tata AIG Car Insurance
    "GOOD"
    0.5 3.0/5 "Satisfactory"
    I am using the car insurance policy with the TATA AIG GENERAL INSURANCE since from last 4-5 years the policy has the coverage of full also it has the no claim because i has no claim. The premium paid was 4K also the IDV value was nominal with this policy.
    Was this review helpful? 0
    , hyderabad
    Reviewed on May 19, 2019
  • HDFC Ergo Car Insurance
    "Amazing"
    0.5 5.0/5 "Blown Away!"
    I have a car insurance with HDFC ERGO because they have app where i can take a video of my car and there is no requirement for annual inspection which am satisfied. Its very techno survey and would say amazing feature. The premium is very reasonable and have taken a third party insurance which covers bumper to bumper. The claim process was satisfactory.
    Was this review helpful? 0
    , silvassa
    Reviewed on May 19, 2019
  • ICICI Lombard Car Insurance
    "EXCELLENT BANKING"
    0.5 5.0/5 "Blown Away!"
    The two wheeler insurance has been using with the ICICI LOMBARD GENERAL INSURANCE where i had no claim experience with this policy also the policy has the coverage for full along with that there is a no claim bonus in this insurance policy.
    Was this review helpful? 0
    , noida
    Reviewed on May 18, 2019
  • ICICI Lombard Car Insurance
    "EXCELLENT"
    0.5 5.0/5 "Blown Away!"
    I have purchased the car insurance policy with the ICICI LOMBARD GENERAL INSURANCE where the process was simple and i got the insurance without any hassle process. The premium paid was nominal also the IDV value is satisfactory with this insurance policy.
    Was this review helpful? 0
    , noida
    Reviewed on May 18, 2019
  • HDFC Ergo Car Insurance
    "Good Protection for Car"
    0.5 5.0/5 "Blown Away!"
    I have policy from same HDFC Ergo because I availed car loan from Hdfc bank. I paid the premium of Rs. 10,000 for one year. I took bumper to bumper protection for my santro car it got the insured value of 80%, they do have road side assistance and 24 hours service.
    Was this review helpful? 0
    , hyderabad
    Reviewed on May 17, 2019
  • HDFC Ergo Car Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I have taken the car insurance policy with the HDFC ERGO GENERAL INSURANCE and using it since from last few years and i had no claim with this policy. The premium was nominal and the IDV value is nominal with this insurance policy. The coverage is satisfactory.
    Was this review helpful? 0
    , pune
    Reviewed on May 17, 2019
  • SBI General Car Insurance
    "Good service"
    0.5 4.0/5 "Great!"
    I have taken Car insurance through SBI general Insurance ,the car model Ford Fiesca ,the premium is nominal ,it is a 1year ,need to renew ,premium Through the agent ,I have received the policy documents on time ,I am paying the premium on cash through agent .I have submitted the documents through the agent .The model of the vehicle is 2008 ,so far not gone for claim .The agent gave all the required information about the car policy .
    Was this review helpful? 0
    , bangalore
    Reviewed on May 16, 2019
  • HDFC Ergo Car Insurance
    "Good experience"
    0.5 5.0/5 "Blown Away!"
    HDFC Ergo is providing no claim bonus for Car insurance which is good. It is a first party insurance which includes bumper to bumper with RSA. I got the insurance paper and agent used to call me for renewal. I am making the premium through online to the agent account. IDV for the vehicle is good and am having ford Ecosport which is 2.5 years old.
    Was this review helpful? 0
    , chennai
    Reviewed on May 15, 2019
  • HDFC Ergo Car Insurance
    "Good in settlement"
    0.5 5.0/5 "Blown Away!"
    I have ELTO 800 car its around three years old hence I took car policy from HDFC Ergo by paying the cost of Rs. 8000 for one year. I availed zero depreciation plan, once I claimed with them when my car bumper got damaged. I got 95% of reimbursement amount from insurer.
    Was this review helpful? 0
    , mumbai
    Reviewed on May 14, 2019
  • Bajaj Allianz Car Insurance
    "Good Service"
    0.5 4.5/5 "Excellent!"
    I have taken card Insurance directly through agent ,it was 1year policy and each year need to renew ,The premium is paid online ,The premium was little high so far not gone for any claim.The model of the vehicle is 2012and the name of the vehicle is Skoda superb.I have received the policy documents on time .The service was good to me so far.
    Was this review helpful? 1
    , chennai
    Reviewed on May 13, 2019
  • United India Car Insurance
    "Trusted Insurance Company"
    0.5 5.0/5 "Blown Away!"
    I have fancy number yellow board car so the premium is higher around Rs.36,000 for per year. Its only 1.5 years old maruthi ciaz card, the insurer provides 24 hours road side assistance and no claim feature. They do have cash less garages, I got the insured value around Rs.8.5 lakhs, total value of the car was around 13 lakhs.
    Was this review helpful? 0
    , bangalore
    Reviewed on May 13, 2019
  • review Car Insurance
    "its okay"
    0.5 3.0/5 "Satisfactory"
    I had a car insurance with Kotak, after claiming for Maruti car said they can't provide bumper to bumper so had a problem on the renewal for my father car so we had changed to HDFC Ergo for both the cars. Its a one year policy. The premium was better when compared to others, the benefits are same . I have received the insurance paper on time. Claim was fairly good.
    Was this review helpful? 0
    , new delhi
    Reviewed on May 12, 2019
  • HDFC Ergo Car Insurance
    "Good"
    0.5 4.0/5 "Great!"
    I just go to the dealer where my car get service and taken a suggestion for choosing the insurance from the executive. The premium was in comparison. Its just an online procedure. I got zero dep comprehensive plan for one year policy. I have no claims for my car but I had claim for my father car and it was simple.
    Was this review helpful? 0
    , new delhi
    Reviewed on May 12, 2019
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