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Buying a car is a big dream of every middle class and working family. Before taking the car on the road, we spend thousands of rupees on comprehensive or bumper-to-bumper car insurance so that there is no additional financial burden on our pockets in case of any unexpected accident, natural disaster or accident. But the reality of Indian roads is that when vehicle owners apply for an insurance claim after an accident, in about 20 to 25 percent of the cases, the insurance companies directly reject the claim or reduce it drastically. From Lucknow’s Shaheed Path and Gomti Nagar to Delhi-NCR’s expressways and Mumbai’s roads, hundreds of such cases come to light every day where despite there being no direct fault of the driver, the insurance company flatly refuses to pay the claim citing the nuances of the rules. Despite the clear rules of Insurance Regulatory and Development Authority of India (IRDAI), small negligence of the policyholder becomes the biggest basis for claim rejection. If you also drive a four-wheeler, then it is very important to know those 10 fatal mistakes which can cost you lakhs of rupees in your pocket.
During the rainy season, waterlogging is common in Lucknow’s Charbagh, Alambagh or any low-lying urban area of the country. The first and most common mistake is ‘Hydrostatic Lock’. If your car suddenly stops after getting stuck in a waterlogged road, never make the mistake of hitting the self-start again. When a vehicle submerged in water is started, water directly enters the engine cylinder through the exhaust or air intake, causing the engine to seize. Insurance companies consider it not an accident but ‘Consequential Damage’ caused by the negligence of the driver and reject the entire claim. The only way to avoid this is to leave the vehicle there, call a tow crane and get an engine claim only if you have ‘Engine Protect Add-on’. The second big mistake is unnecessary delay in reporting the accident. As per insurance rules, it is mandatory to register a claim on the toll-free number of the insurance company within 24 to 48 hours of the accident or theft. If information is given after a week, the insurance company assumes that the real reasons for the loss are being hidden.
The third serious mistake is installing CNG kit or expensive aftermarket accessories in the vehicle and not informing the insurance company about it. People buy a petrol car and later get the CNG kit fitted from outside, but do not get it endorsed in the RC and insurance policy. If such a vehicle catches fire or meets with an accident, the insurance company immediately cancels the claim citing illegal modifications. The fourth biggest mistake is giving wrong information about ‘No Claim Bonus’ (NCB) in order to reduce the premium. If you had taken a claim in the previous policy, but took 20% or 50% NCB discount while taking the new policy, then the insurance company considers it as ‘Misrepresentation of Facts’. In such cases, when you make a major accident claim, the surveyor takes out the old history and makes the entire claim zero and the policy may even get cancelled.
The fifth mistake is using a private (private number plate) vehicle for commercial activities. If your white number plate vehicle is being used on a ride-hailing platform, delivery app or for renting rides and an accident occurs during that time, the insurance company will not pay a single rupee. Commercial use requires separate insurance and permits. The sixth mistake is driving without a valid driving license (DL) or handing over the vehicle to a person whose license has expired or who has only a learning license and does not have a person with a permanent license sitting next to him. In the absence of a valid license, insurance coverage automatically ceases as per law. The seventh and most unforgivable mistake is driving under the influence of alcohol or any intoxicant (Drunk Driving). If the medical examination or police report at the time of the accident confirms that the driver’s blood contains alcohol more than the prescribed limit, then no insurance company, no matter how expensive your policy is, does not pay a single penny of compensation.
The eighth major mistake is that as soon as an accident occurs, people panic and take their car straight to their nearest local garage and start the repair work. The rule is that until the authorized surveyor of the insurance company physically inspects the accident vehicle and takes its photo and video, not a single nut-bolt of the vehicle should be opened. If you get the bumper replaced or denting-painting done before the survey, the surveyor will refuse to consider that damage as part of the accident. The ninth mistake is to ignore evidence at the accident scene. Whenever an accident occurs, before removing the vehicle immediately, take photographs from all sides, the number of the other vehicle, road conditions and if possible, make a video. In modern times, dashcam footage becomes the strongest evidence, which proves that the fault was not yours and the claim gets approved without any dispute.
The tenth and most basic mistake is forgetting the policy renewal date. If your policy expires at 12 midnight and an accident occurs the next morning, there is no benefit of the grace period; No claim is acceptable on a lapsed policy. Apart from this, the normal comprehensive policy deducts huge depreciation on plastic, rubber, glass and fiber parts, leaving only Rs 20-25 thousand in hand against a loss of Rs 50 thousand. Therefore, one should always take necessary add-on riders like ‘Zero Depreciation’ (Zero Dep / Bumper to Bumper), ‘Engine Protection’, ‘Consumables Cover’ and ‘Roadside Assistance’ (RSA) so that one does not have to pay a penny from one’s pocket at the time of claim.
Remaining calm and following legal procedures during any untoward incident on the road makes your claim safe. In case of any major accident, immediately inform the local police and make an FIR or General Diary (GD) entry, especially when the case involves damage or bodily injury to a third party. After this, immediately get the car towed in the cashless garage of your insurance company’s network. While filling the claim form, enter the exact details of the date, time and events of the accident; Making up fabricated stories often leads to contradictions in the statements which raise doubts on the surveyor. Always keep your RC, Driving License, Policy Copy and Pollution Certificate (PUC) updated in DigiLocker or m-Parivahan app. When you follow the rules honestly, no insurance company can dare to reject your legitimate claim.