Welcome to the topic “Reasons Why Your Car Insurance Claims Can Be Rejected“.
Insurance is an agreement built on trust and disclosure between the company and its clients. We, at Perla insurance, recognize that and are determined to keep our clients well informed at every stage. This is what makes us the best non-life insurance company in the Philippines.
Offering both TPL Insurance and Comprehensive Car Insurance, Perla insurance has built a reputation of reliability and trust. The company has 16 branches throughout the country.
We try our best to make insurance claims as easy as possible. But sometimes you may find yourself in a situation where your insurance claim is rejected. Here are a few reasons why that might happen.
The Accident Was Caused Due To The Policyholder Violating The Law
It is evident that when driving, traffic rules must never be violated. At Perla insurance, we value your safety and well-being and urge you to obey traffic laws at all times.
If for some reason, you choose to ignore these laws and are unfortunately involved in an accident, your insurance policy will not cover your damages.
Some of the most common offenses are:
- Driving under the influence of alcohol or other intoxicating substances.
- Using your cell phone while driving.
- Driving without a valid drivers’ license
The Policy is Unpaid
When you purchase an insurance policy but do not fully pay the costs of the policy, the insurance contract is not valid. So when you meet an accident and file for claim against any damages, your claim will be denied. Make sure that your insurance policy is fully paid when it is issued and your coverage period has started.
The Types Of Insurance Coverage
The extent of the type of coverage that you chose is another reason why your insurance claim may be denied. Before filing a claim, it is best that you go through your insurance policy. This is to check whether or not it covers the type of damage you sustained.
If your policy does not cover the damages, then your claim will inevitably be denied. Another thing to keep in mind is whether or not your claim exceeds your coverage limits. If this happens, then the excess amount of money would be your responsibility.
Here at Perla insurance, we offer six different types of comprehensive insurance policies. These are loss and damage, acts of nature, compulsory third-party liabilities, personal auto accident, excess bodily injuries, and third-party property damage.
If your insurance plan includes all six, then you don’t have to worry about your policy coverage.
The Claim Is Denied Due To The Policy Being Lapsed
Even the most proficient drivers can be involved in accidents. That is why it is vital to keep your insurance policy up to date at all times.
This is one of the chief reasons why your claim may be denied. So if at the time of the accident, your insurance policy is not renewed, then your claim will not be entertained as your car is considered uninsured.
Violating The Policy Conditions
When you opt to buy a car insurance policy, you are expected to use your vehicle in a particular manner. Violating these conditions can cause your claim to be rejected. A typical example is using your privately insured vehicle as a for hire vehicle and transporting people or goods.
In that case, an investigation will be carried out. If the insured is found violating the policy conditions, the claim would be rejected. It is best to carefully read your policy so that you are well informed and avoid these kinds of issues.
The Insurance Claim Is Not Filed On Time
For each claim, there is a deadline, and if that deadline is not met, the claim will stand invalid. If you take more than the designated time, your insurance claim may be disapproved.
No Treatment At The Time Of Injury
If you were involved in an accident, seeking immediate medical attention is very important. However if this is not done, it could be hard to prove that the injuries that you suffered were a result of the crash.
If you wait too long, then we would not be obliged to pay for your medical treatment as there would be no proof that your injuries are from the car crash.
Filing An Invalid Insurance Claim
When filing for an insurance claim, avoid making irrelevant claims and under no circumstances give false information. If the investigation team finds out that you have made invalid statements, then your case will be labeled as fraudulent.
Not only that, but you would also face legal consequences and would have to pay additional charges if legal proceedings are initiated. Your claim will also be rejected if you provide incomplete information or try to hide something from your insurance adjuster.
Our insurance policy does not cover intentional damages. If it is found that the damage done to your vehicle is intentional by the member of the assured’s household or employee of the assured’s company, then your claim will be rejected and you will be charged with insurance fraud.
The Policy Is Not In Your Name
When buying a second-hand car, always make sure that the car itself and its insurance policy is in your name and not in the previous owner’s name. If this is not the case and the insurance policy is still registered under the name of the car’s previous owner, then your insurance claim will be rejected.
To Sum It Up
When filing for a claim, always remember to provide the correct information and not exaggerate the events leading to the crash. Each policy has a deadline, and the claim must be filed before the deadline; otherwise it would be regarded as invalid.
Always remember to follow the traffic laws otherwise we won’t be able to help you. You must always renew and fully pay your insurance policy and make sure that the policy is in your name in case you have a second-hand car.
If in the unfortunate situation that you are injured during an accident – get immediate medical attention. So when filing for your claim, you should have concrete evidence that the injuries you suffer are a result of the accident. This is so you can easily claim your medical expenses.
In short, if you are careful and follow a few simple steps, the reasons for the denial of insurance claims are easily avoidable. Moreover, the process of your insurance claim will be hassle-free.
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Also Read: How is Your Car’s Premium Computed in Comprehensive Car Insurance?