5 Ways in Which Car Insurance Companies Can Deny Your Claim
Car insurance in UAE is mandatory for anyone who owns a car and it is an offense to drive without it. Basically, car insurance provides financial support to the policyholder in case of an accident. And the process of getting the insurance money in such a situation is called claiming the insurance.
Sometimes, when a person tries to claim the insurance, the insurance company may deny the claim, leaving the policyholder with the burden of paying for the damages out of their own pockets. The sad truth is that the policyholder will know that their claim will be denied only after filing for it, making their situation bad to worse.
So let’s see the ways in which insurance companies deny the claim of the policyholder when it comes to car insurance so that it does not happen to you.
Know What the Policy Covers
It is too common to see that people are more focused on the price of the policy rather than what the policy covers. There are two main types of motor insurance policies here in the U.A.E: Third Party Liability plans and Comprehensive Insurance plans. Comprehensive car insurance policies provide bumper to bumper insurance for the car of the policyholder and also covers the driver and passengers in case of an incident. Third Party Liability plans, as the name suggests, does not provide insurance coverage to one’s own car but protects the car and property of those affected by an accident in which your car is involved. So, if you have a third-party insurance policy, you will not be eligible to claim for damage to your own vehicle in case of a known fault accident. However, the plus side is that these third-party insurance policies cost less than comprehensive policies.
So, the best practice is to always inquire about what the policy covers and what it doesn’t before you put down your money on one. Otherwise, your claim can be rejected when you bring it up for compensation.
The Credibility of the Driver
Car insurance companies can deny the claim if the car was damaged when an unlicensed person was driving it. Driving without a license is considered a crime and can have serious fines and even imprisonment if caught. Hence, most of the insurance companies make it clear in their terms that the policy doesn’t apply when an unlicensed person is driving the vehicle.
So, in most cases, the policyholder might have to pay from their own pockets if the driver was not licensed. And this is an easy denial for the insurance company.
Do Not Take Too Long
After an accident has occurred, the police will be on scene and will hand you a report after studying the scene. This report must be filed with your insurance claim, but taking your own sweet time to do so might get you into trouble.
Insurance companies require that you raise the claim during the same policy period as that of your accident. If you fall out of that time frame and raise the claim after your policy has expired, then you might not be able to claim your insurance even though you had insurance at the time of the accident. So you need to make sure that you report the events to the insurance company without delay.
Break The Law and You Will Be Denied
If the damage on your vehicle happened as a result of you breaking the law, then the insurer will most likely deny your claim. For example, if you met with an accident while under the influence of drugs, then the insurer doesn’t have to take the liability since its already mentioned in their terms and conditions.
On top of that, causing damage to people or property as a result of breaking the law is a crime, and you may end up paying a hefty fine, or in the worst-case scenario, even imprisonment.
From what we have discussed, it’s clear that a claim will not be rejected by the Car insurance company without valid reasons. They are there to help you when you need money the most, and with the right approach, it is always a win-win scenario!