Under what conditions, 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.