An car insurance claim that is filed carelessly might easily result in denial or a reduced claim payment. However, if you know what you should and should not do, you can experience a seamless claim process and prevent delayed claim settlements and denials. Here are eleven errors to avoid when filing a claim for auto insurance.
Avoid these 9 errors when filing an auto insurance claim.
If you possess a car, you must purchase the required Third-Party Car Insurance policy. Accidents might result in significant damage to a third party or their property.
Also, only if you have Own Damage coverage is your car protected against loss. In order to limit the loss, you should register a claim as soon as feasible.
The procedure for filing a claim is straightforward, but you must verify that all the information and papers you provide are accurate and error-free.
All accusations will be investigated by the claims staff. They write a report for the insurer to approve or deny the claim based on the inquiry. Here are some of the most frequent errors to avoid when filing an auto insurance claim.
1. Filing a claim when it’s not warranted
If you acquired Own Damage coverage for your car and did minor damage to it, you should probably not file a claim. Here are two things to consider:
- Deductible amount: If the repair cost is less than your deductible (mandatory and/or optional), you will receive nothing. Your claim will be regarded as closed, and no settlement will be issued.
- NCB Discount: Assume that the repair cost is somewhat more than your deductible. In that situation, it is also likely not worthwhile. This is due to the fact that you will lose the No Claim Bonus (NCB) discount you receive for not filing claims throughout the policy period. Only file claims if the cost of repairs exceeds the accrued NCB discount.
2. failing to inform the police
The biggest error you can make in any situation is failing to notify the police. You may be attempting to avoid legal complications. However, there are two instances in which you must report the occurrence to the police.
- Accidents: If you want to file a claim for accident-related losses, you must notify the police and file a First Information Report (FIR). If the other party is at fault, they may attempt to resolve the dispute without using law enforcement. You cannot consent to such a deal. By notifying the police of the accident, you document its occurrence. In addition, the FIR is a crucial document that insurers need to commence the claim settlement procedure.
- Theft: If you want to file a claim for car theft-related losses, you must notify the local police and file a FIR.
3. Failing to transfer the coverage to your own name
If you purchased a pre-owned car and neglected to transfer the insurance to your name, you will be unable to file a claim. Because it is not under your name, the policy will be deemed invalid.
The seller is responsible for transferring the insurance coverage within 14 days of the sale. To avoid a denial of your claim, be careful to include the proper evidence about car ownership.
4. Driving the car
In car insurance claims, evidence plays a significant role. Moving your car from the scene of an accident is equivalent to tampering with evidence.
You must not only accept the denial of the claim, but also bear the expense of the damages. Wait for the police to arrive and investigate the accident in order for the correct information to be recorded in the FIR and the accident to be accurately documented.
5. Use of the car by an unlicensed driver
Is your car being driven by someone without a valid license? Then, your claim will be denied, as the car was driven by an unregistered driver.
Ensure that only registered drivers use your car to avoid unpleasant financial obligations, as you are responsible for the cost of repairs.
6. driving under the influence of alcohol or drugs
In addition to car damage, you could be wounded in an accident if you are intoxicated and driving an insured car.
Your claim will be considered denied because the insurance does not provide coverage for such liabilities.
7. Exceeding passenger limit
If your car is damaged while carrying more people than the insurance allows, you will not be able to file a claim.
To avoid having your insurance claim denied for exceeding the allowed number of passengers, it is crucial not to make the error of transporting more than the specified number of individuals.
8. Non-declaration of CNG/LPG equipment
If you have put a CNG or LPG kit in your car, you must notify ACKO. ACKO will update the CNG/LPG kit installation in your policy so that claims are settled based on the information you supply.
If you have not declared the installation of such kits, it is possible that your claim will be denied.
9. All Others
Damages and losses not specified in the insurance are not covered. Therefore, avoid filing claims for damages that exceed the policy’s coverage.
For instance, engine damage is not covered by the Own Damage cover. However, you can extend the coverage of the core plan by purchasing the Engine Protection Cover add-on.
Now that you have a good grasp of the errors to avoid when making a claim, ensure that you adhere to the protocol for a seamless and trouble-free process.
Also, familiarize yourself with the coverages and exclusions to avoid unpleasant claims experiences. Also, renew the policy before the expiration date to avoid claim rejection.