Under what condition, can a claim be rejected by an insurance company?

A claim may be rejected by an insurer under certain circumstances. Some of these circumstances are as mentioned below:

  • The policy has expired or has been cancelled.
  • The premium cheque has been dishonoured.
  • The date of accident is outside the policy period.
  • The person driving the vehicle at the time of accident didn’t possess a valid license.
  • The person driving the vehicle at the time of accident was under the influence of alcohol or drugs.
  • The vehicle has changed owners but the same has not been informed to the insurer within the stipulated 14 days..
  • The damages existed before the policy started.
  • The nature of damage doesn’t correlate with the cause of the accident.
  • The vehicle was used for some other purpose other than commercial business or what was mentioned in the proposal.