Why ULIP mis-selling has become rampant ?
Why is there so much mis-selling of ULIP? How to avoid this mis-selling? Who should take ULIP?
Car insurance is a mandatory requirement of driving a car at any public place in India. In return for paying insurance premiums, it’s normal for you to expect your insurer to approve claims raised during the policy period. But rejection of car insurance policy claims is not new in our country. That’s why many people think that buying car insurance is nothing but a waste of money. But it is not true. In order to avoid rejection, you should know the reasons. Let’s take a look at the 9 major reasons of rejection of car insurance claims.
1) Driving without licence
Driving without a driver’s licence or with an invalid licence is one of the main reasons why your car insurance claim can be rejected. These actions are illegal in India. Naturally the insurance company cannot approve the claim in these circumstances.
2) Drunk at the wheel
Driving under intoxication is against the law. If found driving under the influence of alcohol, your accidental damage claim will not be entertained.
3) Private car for commercial use
If you are using your personal car for commercial purposes on a regular basis, your car insurance claim may be denied in the event of an accident. Commercial vehicles fall under a different set of coverage and laws for insurance.
4) Repaired without report
If you get the car repaired before informing the insurance company, your claim may be rejected by the insurer. You should always inform your insurance company before getting your car repaired.
5) Not paying premium on time
If the policyholder does not pay or forgets to pay the premium of the car insurance policy on time, then the insurance company can reject the claim. It is a good practice to pay the insurance premium on time to avoid any unnecessary rejection.
6) Hiding details
A large number of buyers hide vital details about their vehicle while buying car insurance. This may seem extremely convenient and save money. But when a claim is made, it may cost dearly.
7) Delay in reporting
All insurance companies provide a timeframe to report the incident and raise a claim. If you delay reporting the claim and do not provide all related documents, your claim may be denied.
8) Modification of car
If you have added new accessories or modified your car during the policy period, you need to inform your insurer before the insurance is renewed. If you do not declare these changes, there’s a good chance that your claim will be rejected.
9) Policyholder’s negligence
If your car is parked in a no-parking area and meets with an accident there, it is likely that the insurance claim will not be entertained.