Car Insurance covers any expenses when your car is stolen or damaged due to an accident. Insurance companies are usually blamed for rejecting car insurance claims often. However, they have to check the validity of your claim before approving it. If your claim has been rejected, check what has gone wrong on your end rather than just blaming the insurer. Some reasons for claim rejection are explained below.
Top Reasons for Rejecting a Claim
- No Police Report
File a police complaint within 24 hours of the event. If you do not, your claim will be rejected. A police report is a mandatory document to apply for a claim.
- Unauthorised Driver
When you authorise someone to drive your car, name them on your policy. Insurance will cover only you and any named driver in the event of any accident. You can name two drivers for one vehicle for free. If you want to include additional drivers, you would be charged additional fees.
- Incomplete Information
Provide complete information about anything and everything to your insurer. This is applicable during the application process and claim submission process. Any ambiguous or unclear statement may lead to claim rejection.
It is important that all the parties involved in the accident must provide the same statement. If your statements don’t match with each other, your claim may be rejected.
Be careful while handing over your car keys at any parking facility. If your car goes missing at valet parking areas, insurers will not entertain your claim application. Insurers consider handing your car key over to someone as an act of negligence.
- Policy Terms
Read through the policy terms and conditions before submitting a claim application. Be sure of all the events a policy can cover. Do not just assume that you have protection for everything. Some events that are excluded are damages caused by civil riots, floods, any modifications and injury to the driver.
- Drunk Driving
Driving under the influence of alcohol or drugs is an offence. If an accident occurs in such a state, you are not eligible to make a claim. Instead, you have to pay a fine for driving under influence. Even if you drive safely and it’s the fault of a third party, you will not be spared because you were under the influence of alcohol or drugs.
- Wrong Purpose
Use your private car for personal purposes. If you use a passenger vehicle for commercial purposes, you cannot claim in the event of an accident. Do not use your car for any illegal purposes.
What’s Next After Claim Rejection
Visit Your Agent or the Claims Department:
Meet your insurance agent and figure out the reasons for the claim rejection. Insurers will inform the agents the reasons for rejection. Discuss the reasons to identify areas to improve or change.
If you are not satisfied with your discussion with the agent, directly visit the Claims Department of your insurance company to address your concerns. If the rejection is due to insufficient information or incomplete documentation, check whether you can apply for a claim again with the relevant information.
Seek the assistance of the Financial Mediation Bureau if you feel that your claim was valid. Persatuan Insurans Am Malaysia (PIAM) and Bank Negara Malaysia (BNM) also help to resolve such disputes.
Seek an Advocate:
Seek the help of an advocate if you strongly feel that your claim is valid. This should be a last option only if all the other options do not work. You can take this matter to court for a redressal with the help of an advocate.
Tips to Prevent Claim Rejections
- Read through all terms and conditions of your policy.
- Maintain your car in a good condition with regular servicing.
- Practice safe driving at all times.
- Keep all relevant documents organised and handy.
- Do not break any laws while driving.
Do not despair if a claim is rejected. Keep communicating with your insurer. Find out ways to improve to prevent claim rejections in the future. Use the tips mentioned above to enjoy a safe driving experience.