Reasons Your Car Insurance Claims May Be Denied

Divya Nair

02 Jan 2017

Auto insurance companies deny claims or reduce payment values in case of frauds or when insureds furnish any wrong information. A lot of people make such mistakes by being unaware of the grave consequences when the need arises. In such a situation, filing claims and receiving financial benefits could be a difficult task.

Some of the common reasons that may lead to rejection of your car insurance claims are:

Invalid License -

Either your license is fake, it has expired, or it is for a different vehicle category.

Wrong Usage Of Car -

You have a car insurance policy which states ‘for personal use’, but you use your car for commercial purposes. If you want to use the vehicle commercially, you should purchase a commercial car insurance policy.

Accident Under The Influence Of Alcohol -

An accident because of drink and drive offense (or any other intoxicant for that matter) may lead to rejection of insurance claims.

Failing To Intimate Insurer About A Theft/Accident Within Stipulated A Time -

In case of a theft or an accident, insureds are obliged to inform their insurance companies within 48-72 hours of the incident.

When Value Of Your Vehicle Depreciates -

Over time, the value of your vehicle depreciates. After few years, the value of your car tend to be lesser than the overall repair cost due to depreciation. In such a situation, your car insurance claim may be denied.

Policy Lapse -

Filing a claim for a lapsed policy would not help you in anyway and so it is necessary that you unfailingly pay your yearly premiums on or before the due date. Even if you are unbale to pay premiums on due dates, insurance companies provide a grace period to renew your insurance.

Conclusion -
Now that you know when your auto insurance claims may get rejected, why take the risk of getting less financial assistance or worst - not getting anything from your policy at all? Be honest and furnish every detail pertaining to the above factors to your insurer.

Buy a Car Insurance Cover Now!

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mutual-fund

Why to Choose Mutual Funds Instead of Directly Investing Into Equities?

Whether to invest in equities or mutual funds is a question that has plagued every investor. As someone who needs the best value for his/her investment should you invest in equity directly or via mutual funds?

Let’s start by first understanding what these two terms ‘equities’ and ‘mutual funds’ stand for-

Equities- Equities generally represent ownership of a company. If you own any equity in a company, you are a part owner of the said company (depending on how much equity you own).

Mutual Funds – It is an investment scheme which is professionally managed by an asset management company. It pools together the resources of a group of people and invests their money in equities, debentures, bonds and other securities.

Why choose mutual funds over equities?

For people who’ve never invested in either stocks or mutual funds, it is hard to know which is better and where to start. Broadly speaking, if you are a novice investor, mutual funds are not only less risky but also way easier to manage. Here are some ways in which investing in mutual funds is beneficial as opposed to investing in equities -

Diversification

Mutual funds provide more diversification as compared to an individual equity stock. When you invest in equity, you are investing in a single company which has its inherent risk. For example, if you invest Rs.20,000 in buying equities of one company, you could face a total loss if that particular company performs poorly in the market.  

If you invest the same amount in mutual funds, it will be invested in different kinds of stocks and financial instruments, high-risk and low-risk both, so you might not face total loss even if one company does poorly.

Scale of Investment and Lower Costs

For an individual investor buying and selling stocks is a difficult task due to its high price. Thus, any gains made from stock appreciation are nullified if the overall trading costs are considered. Comparatively with mutual funds, as the money is pooled from a large number of investors, the cost per individual is lowered.  

Another advantage of mutual funds is that you don’t need to invest large sums of money. Buying equities for a profitable venture needs huge amounts of money, a minimum of few lakhs. With mutual funds, you can start with Rs.1000 and earn profits on that as well.

Convenience

Keeping an eye on the markets everyday is a time-consuming business, especially if you are investing as a side gig. There are people who spend their lives studying the market and still end up sustaining heavy losses. Though investing in mutual funds does not guarantee high returns, it is stress-free and needs less work as compared to investing in equities.

To sum it up

It is important to remember that mutual funds have their own disadvantages as well. Thus, as with any financial decision, educating yourself and understanding the suitability of all the available options is the ideal way to invest. 


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Reasons Your Car Insurance Claims May Be Denied

Divya Nair

02 Jan 2017

Auto insurance companies deny claims or reduce payment values in case of frauds or when insureds furnish any wrong information. A lot of people make such mistakes by being unaware of the grave consequences when the need arises. In such a situation, filing claims and receiving financial benefits could be a difficult task.

Some of the common reasons that may lead to rejection of your car insurance claims are:

Invalid License -

Either your license is fake, it has expired, or it is for a different vehicle category.

Wrong Usage Of Car -

You have a car insurance policy which states ‘for personal use’, but you use your car for commercial purposes. If you want to use the vehicle commercially, you should purchase a commercial car insurance policy.

Accident Under The Influence Of Alcohol -

An accident because of drink and drive offense (or any other intoxicant for that matter) may lead to rejection of insurance claims.

Failing To Intimate Insurer About A Theft/Accident Within Stipulated A Time -

In case of a theft or an accident, insureds are obliged to inform their insurance companies within 48-72 hours of the incident.

When Value Of Your Vehicle Depreciates -

Over time, the value of your vehicle depreciates. After few years, the value of your car tend to be lesser than the overall repair cost due to depreciation. In such a situation, your car insurance claim may be denied.

Policy Lapse -

Filing a claim for a lapsed policy would not help you in anyway and so it is necessary that you unfailingly pay your yearly premiums on or before the due date. Even if you are unbale to pay premiums on due dates, insurance companies provide a grace period to renew your insurance.

Conclusion -
Now that you know when your auto insurance claims may get rejected, why take the risk of getting less financial assistance or worst - not getting anything from your policy at all? Be honest and furnish every detail pertaining to the above factors to your insurer.

Buy a Car Insurance Cover Now!