The Motor Vehicles Act (section 145) directs everyone to buy motor vehicle insurance cover before one start driving a car on the roads. Policyholders must have at least ‘third party liability’ motor insurance cover even when opting for the basic insurance plans. Apart from the compulsions of legal compliance, motor insurance cover is necessary for any vehicle owner since it assures protection against financial impact resulting from accidents which might cause injuries to other people, damage to the vehicle of the policy purchaser.
Therefore, a third-party liability coverage is mandatory when driving a vehicle on public roads. However, one must know that there are occasions when a claim submitted to an insurance company that has sold you motor insurance can reject your claim. Some of these can easily be avoided if you are careful about handling your insurance policy as well as driving habits.
Driving without a valid license
If a car is involved in an accident and the driver at the wheel is not carrying the necessary driving license when the accident has taken place, or worse, does not have a driving license at all, the car insurance claim will be denied. This brings us to the specific point of the driving license needing to be valid and for the vehicle specified. Say a driver can have a license for a passenger vehicle but might be driving a commercial vehicle when the accident happened.
Fraudulent claim, driving for commercial purpose
If the insurance company is convinced that fraud is involved in the claim, it is sure to be rejected. Another possible reason can be the use of the vehicle for commercial purpose even if it was purchased for private and non-commercial use.
Driver found intoxicated
Drunken driving, a social menace that is rise in India, constitutes another common reason which results in the rejection of insurance claim. Driving a vehicle after consuming alcohol is illegal in India. If a police report states that the driver of the “offending” vehicle was under the influence of alcohol, no insurance cover will be extended.
Delay in filing insurance claim
It is necessary that a claim is submitted as quickly as possible after an accident. One must check about the deadline of claim filing while buying the policy. Claims must preferably be made within this time. Also, the car insurance policy must have been renewed in time. If the policy has lapsed, you will simply not get your claim, no matter otherwise how justified your claim is.
In India buying a motor insurance is one of the must-dos before you start driving a vehicle on the roads. However, your claims of insurance can be rejected if you are detected indulging in any of the following. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
