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Vehicle insurance can indeed be an option to help ease the burden in the event of an accident. Unfortunately not everyone understands the important things related to insurance claims. This is why auto insurance claims are rejected. Having insurance for a vehicle can help reduce costs when things go wrong. But it’s a good idea for car owners to properly understand each insurance clause.
Using vehicle insurance can certainly protect your favorite car from accidental damage. This is because the insurance function can relieve when a risk occurs to him or the insured object.
Every policy owner must pay close attention to the circumstances that make his claim approved or not. Every definition and explanation in the clause must be understood correctly. It does take time to understand it, because the language used is legal language which is sometimes difficult for most people to understand. But learning this will mean a lot the next time you need to file a claim.
“In general, vehicle insurance owners do not want to read when they are given a clause at the first time of the agreement. This causes the insurance company to refuse when making a claim,” said Laurentius Iwan Pranoto, Communication and Event Manager of Asuransi Astra.
Some claim submissions were rejected by the insurer because it was not in accordance with several agreements at the first time. Therefore, you need to understand some of the reasons why claims were rejected and why.
Deadline
Insurance claims can be delayed or even rejected if the claim processing exceeds the time specified in the policy. Insurance always provides a certain time limit for processing claims. After that, the claim can be rejected. Car insurance claims must be taken care of immediately because the deadline is short, only 3 x 24 hours.
Driver’s Document is not complete
Documents must be complete, starting from a photocopy of the insurance policy, a photocopy of the driver’s license and vehicle registration, and of course the claim submission form. A certificate from the police is also required in case of serious damage. In addition, photos are also one of the evidence when you want to submit a claim to insurance.
The driver has violated the law
Another reason that makes an insurance claim is rejected is when the policyholder commits an unlawful act. For example, if he has a comprehensive type of insurance and his car is in an accident due to reckless driving or traffic violations, he cannot file a claim. The same is true if the policyholder does not have a driver’s license when driving, parks in any place, and is drunk.
The area of occurrence is not included in the contract
Insurance policies may include a clause regarding territory into the agreement. Claims are only served if the incident occurs in certain areas. If a person insures his vehicle in Indonesia and the policy states that a claim can only be submitted if he has an accident in Indonesia, it means that the claim will be rejected if he has an accident abroad.
Not reporting additional accessories
Each additional car accessory must be reported to the insurance company and attach the coverage value of the accessory, so that if a claim occurs, the accessory can be covered by the insurance company. For the addition of NSA (Non Standard Accessories) will be charged the same rate as that imposed on the vehicle and will be multiplied by the value of the NSA to get the premium value that needs to be added. The addition of premiums is limited to the remaining period that has not been served.
Damage occurs is the initial damage before the car is insured
In this case, the insurance company will indeed return the vehicle to its original state. Therefore, it is necessary to carry out surveys and photos as evidence. Here it explains if the car has been damaged before being insured, then it certainly cannot be claimed.
The police are not in waiting period
Waiting period in insurance is a certain period after the policy is issued, the cost of claiming the insured vehicle is not covered by the policy. This waiting period is 1 month after signing the clause.
Intentional damage
This means that the damage to the car that occurs as a result of intentional harm by the insured. For example, if the insured accidentally crashes his car into another car or he hits his vehicle so that it dents, then this cannot be claimed. Or deliberately crashing into a flood that can make the car break down due to the engine experiencing water hammer.
Policy is not active (lapse)
Insurance policies can be in an inactive state due to a number of circumstances. This inactive state is also known as lapse. Insurance companies are not willing to pay insurance claims if the policy is lapsed.
As a prospective policyholder, before choosing vehicle insurance for your car, make sure all the information you need has been asked and the coverage provided is clearly understood so that there will be no disappointments in the future.