Having your car insurance canceled can be a big disappointment. To stop it from happening to you; here is a quick guide that can help you out.
As you already know, it is a legal requirement to have car insurance in India. To avoid cancellation it is important that there are no gaps left in your car insurance policy.
At the time of purchase, the benefits and limitations in a car insurance policy may seem all Greek and Latin to anyone. There are so many car insurance companies such as Bharti AXA Car Insurance, Bajaj Allianz, Tata AIG and it can be difficult to compare car insurance quotes from different car insurance providers.
Moreover, any loophole at the time of policy purchase can nullify your insurance at the time of claim. So make sure that you double check all the information, clauses, terms and conditions before the purchase.
Having car insurance means spending a few thousand rupees, which is a yearly financial commitment to the insurer from the policyholder. After spending so much money, it can be disheartening to know that your motor insurance policy has been rejected or nullified by the car insurance company.
Even a non-deliberate mistake can lead to rejection of your claim or cancellation of your policy. What does this imply?
It means that the insurance premium that you have been paying over the years will go down the drain, and you will have to bear the expenses on your own. Car insurance companies here hold the right to cancel the insurance request, if it is beyond the scope of the policy wordings. The policyholder is usually given a notice before nullifying the claim.
If you are lucky, the premium is also refunded after deducting the premium paid premium during the policy period on pro-rata basis.
There can be numerous reasons behind terminating a car insurance policy during the policy period. Here’s a quick rundown of the most common mistakes that lead to the invalidation of an insurance policy or claim –
Ignoring the Routine Maintenance
Check your car manual, you will find the routine maintenance schedule listed in it on the basis of the car mileage. It is your duty to keep your car in a good condition. It will improve the overall performance and you can enjoy a trouble-free drive on the road.
Regular inspection of the engine, brakes, oil, filter, transmission and suspension components should be carried out manually or at a workshop. We tend to forget this usually until we have to bear the loss.
2. Lying to the Car Insurance Provider
A lot of car insurance policies and claims get rejected due to false information being provided by the proposer. Here are some of the main reasons why insurance companies nullify the claim requests –
- Providing fraudulent information to the insurer about personal and car details.
- If the claim request is found to be untrue
- Deliberate attempt to go against the policy terms and conditions
To avoid this situation you can use a car insurance calculator online and then decide the policy you want to buy.
3. Breaking the Traffic Rules
If you are found to be defying with traffic rules and regulations, you will have to face the wrath of your insurer and transportation authority as well.
Make sure that you are not doing drink and drive and get your license renewed before it gets deferred. Do not give your insurer any significant reason to reject your insurance claim.
4. Hiding about the Car Modifications
Usually, a car modification certificate is given to the car owner at the time of modifying the car. This certificate is a pre-requisite to get insurance for modified cars.
The premium is also on a higher side for such cars as the performance, mileage, safety everything gets affected.
It is recommended that you inform your car insurance provider beforehand rather taking any deceptive measures or to avoid any ambiguity in future.
5. Lending the Insured Car To Someone Else
Car Insurance Companies are liable to reimburse the policyholder and the drivers who are authorized to drive the insured vehicle.
Suppose, the insured car is loaned out to a third-person, it can straightway invalidate your claim request. The damages won’t be recompensed by the insurer for deliberately giving your car to a third-party or a friend or colleague.
6. Using Your Car for Professional Use
Usually, car insurance companies put a condition on individual car insurance policies bought for personal and private use. It states that the car insurance company is not liable to bear the expense if the vehicle is used for commercial, business or professional purposes.
There are special policies for commercial vehicles, you can buy that if need be. This is clearly mentioned in the application and policy wordings if you check.
Avoid making any such mistakes if you want to stay fully insured and do not want any risk of being rejected by the insurer at the time of any accidental emergency.
In a nutshell
Hope the above-mentioned tips will put you off-the risk. Keep your reckless attitude at a bay and check with your car insurance provider in case of any doubts. After all, nobody wants their insurance to be rejected by their insurer.