
As all insurance policies come with their own terms and conditions, coverage of the same insurance policies also varies depending on the insurance company.
Hence, there are certain things that you should refrain from doing if you want to avoid your insurance claims from getting rejected.
1. If you have a motor insurance policy, in case of regular wear and tear or breakdown you will not be covered. Insurers only provide cover for losses caused by the impact of natural calamities. For instance, the motor insurance policies generally cover for losses caused by natural calamities such as floods, lightning, landslide, cyclones, earthquakes, hurricanes, storms, inundation, and typhoons.
2. If your car engine stops due to waterlogging which is referred to as the hydrostatic lock of the engine, the basic motor insurance policy does not provide coverage for that. It is not covered under an insurance policy because insurers consider this as negligence on the part of the policyholder and hence, reject the claim. However, policyholders can also get this covered by opting for an engine-protect add-on cover. Generally, this type of add-on covers costs around 7-9 per cent of the base premium.
3. If you fail to provide both sets of keys of a vehicle, in case of vehicle theft, it will be taken as negligence on your part. Lack of evidence, incomplete or incorrect documentation also leads to claim rejection. Experts suggest policyholders should file an FIR in case their car is stolen or if any third party accident is involved.
4. Most property claims get rejected due to non-disclosure, misrepresentation, and fraudulent acts. Negligence on the part of the policyholder plays a big role in claims being rejected. Policyholders should familiarise themselves with their insurance policies and know the risk that is included and the excluded so that it doesn’t come as a surprise later.
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