Reasons Why Your Car Insurance Could Be Invalid
August 24, 2021
With the increasing sales of cars in India, the traffic on the road has also been steadily increasing. There are a lot of measures that are taken by the government to curb the increasing traffic and to ensure road safety. Despite all these measures, accidents do happen. Minor or major, these accidents take a toll on the mental and financial well-being of all the members of the family. This is where the insurance policy comes into play. Your insurance company and your car insurance policy shoulder the financial responsibility in such mishaps. They understand the turmoil the family is in and help share the burden with you.
The car insurance also pays for any liabilities that arise out of said mishap, in case damages or losses have occurred to a third party. This is why the government of India has made car insurance a mandatory legal requirement for any drivers on the road. This step has been taken in the interests of the safety of the drivers. You could easily get a car or other vehicle insurance from your car dealer at the time of the purchase of your car. The approval rate for car insurance policies is very high in India. However, there are certain reasons because of which the policies or your claims might get rejected. Let’s take a look at some of the reasons.
Why Your Car Insurance Policy Could Be Invalid?
- Breaking the Law: A driver on the road is expected to possess a valid driving license at all times. Not having one or driving with an invalid license are a punishable offense. Further, driving under the influence of alcohol or any substance is also illegal which can lead to policy and claim rejections.
- Keeping Your Insurer Uninformed: The key to any relationship is communication. The same goes for you and your insurer too. Once you have insured your vehicle, your insurer is your partner in protecting your investment (car). So, you have to keep your insurer informed at all times, even when you are planning to get it repaired. Your insurer will inspect the damage caused, estimate the repair and get it repaired for you.
- Being a Defaulter: When you are good at something, don’t do it for free. This policy applies to your insurer too. They offer you and your car the ultimate protection year-round and it is only fair that you pay your premiums on time. Failing to do so can get your policies or claims rejected.
- Don’t Commercialise it: When you are buying your car insurance, your insurer will want to know whether the car will be used for personal or commercial purposes. Once you have declared it as personal use and commercialize it, the likelihood of your claims or policies getting approved is very less as commercial use of vehicles poses a different risk to the vehicle and hence the insurer.
- Modifying Your Car: Your car is like your second home. You keep adding stuff to it and redecorating it as and when any need arises. At the time of policy renewal, you will be expected to declare all the modifications and additions made to the car. Failing to do so can lead to claims or policy rejections.
It is important to be very careful with respect to declaring any information to your insurance provider. Being honest and declaring all the right information at the right time can save you a lot of trouble.