Getting your car insurance claim rejected when you were involved in a car accident could be the biggest nightmare for any drivers. Especially when you need the money to repair your car after the accident. Read on as we will be sharing in detail what could be the causes of your car insurance claim rejected. Aside from that, we will also be sharing on the solutions that you can take into consideration to ensure that you can avoid your car insurance claim rejected if you ever were to get involved in a car accident, hit-and-run, or even car theft.
Why is Your Car Insurance Claim Rejected?
There could be many reasons resulting in why your car insurance claim might get rejected. Learn about the reasons so that you can avoid it.
1. Unnamed driver
It is important for all car owners to understand that your car insurance policy only covers you, the car owner. Who was driving your car when the accident happened? Was it your family member, a relative, or even a friend? Anyone who was driving your car but was not listed in your policy is considered as an unnamed driver. If your car was damaged when it was being driven by an unnamed driver, there is a higher chance that your car insurance claim gets rejected.
However, this does not mean that there is no other solution regarding it. It is common that most insurance providers allow all policyholders to add two names as the named drivers per car for free. Any additional names in the policy will cost you extra charges.
2. No Police Report
It is crucial that a police report is filed within 24 hours from the time of the accident occurs. Do not take this lightly as if you failed to file a report within the period of 24 hours, your car insurance claim can be rejected as your insurance company has the right to reject the report as well as your claims. So the next time you were ever involved in an accident, make sure that you file a report to the nearest police station where the incident occurs as soon as possible and do not delay it. Never fake a police report if you do not want to get into trouble as it could cost you a maximum fine of RM2000 or even up to six months in prison.
3. Not Covered By the Policy
Never assume that your car insurance policy covers all the damages towards your car. Be smart, and always check the coverage on what types of damages that your car policy covers. For instance, some car policies cover only for accidents but do not accept any claims for fire or flood-related damages. If you own a Third Party cover, for example, do not even cover the cost of repair for your own car! So if you were involved in an accident and even if it was not your fault, you will not be covered.
4. Failure To Disclose Vital Information
Filing in all the correct details when renewing your car insurance especially when doing it on your own is very important. Year-by-year, more information is required by your insurance provider to help them determine the price you need to pay for your policy. Some insurance companies, for example, would request details like the type of your parking garage. As a protected private garage has a lower chance of burglary relatively to an unsecured and open garage. This means, if any information you provide them is wrong, you might have just given them a reason to reject your claim.
5. Not Enough Documentation
Any car insurance claim that was submitted without all the required supporting documents will be rejected as incomplete. Supporting documents needed depends on your insurance providers. It is necessary that all required documents are prepared fully before making any claim, such as a copy of your driving license and your car registration certificate. To be on the safe side, you may refer to the Motor Claims Guide that has been provided by Bank Negara Malaysia.
6. Driving Under the Influence
Driving under the influence of alcohol or any dangerous drugs is against Malaysia law. Not only that your car insurance claims will be rejected if you were involved in an accident while driving under the influence, but you will also be charged with a fine and maybe facing jail time.
Be a responsible driver and never drive under the influence, it will not only save your life and money but also will be saving the lives of other road users. As long as you are driving under the influence, and you might get into an accident but it was not your fault, your insurance company has the right to reject your claims.
What Happens If Your Insurance Denies a Claim and What Should You Do?
You have just gotten into a car accident on the road with another vehicle, fixing it will definitely cost you a couple of thousand ringgit due to the damage to your car. You followed on the important steps and was very sure that you will be receiving the insurance money to help you cover the cost of the repair as your car insurance policy does include coverage for collision. After some time, you receive a letter from your insurance company saying that your claim has been denied. Or, you received only a small amount of money for the damages of your car – far less than what your amount of coverage stated in your car insurance policy.
This scenario means that as car insurance claims denial or rejected. The rejection may be from your own insurance company. Or, if the accident was the fault of the other driver, it may be coming from their insurer. Either way, you end up being short on the money you need to pay for the repair of your car – or, possibly, to pay for your medical bills if you were injured.
Most of us have never made any claims against our insurance policies, thus we do not have any experience. However, for those who have experienced car insurance claim rejected, certainly understand how frustrating and disappointing the appeal process that they have to go through.
When your car insurance claim rejected by the insurance provider, you deserve to get an explanation from your provider. If you find any valid reason to appeal, you may be able to submit additional documents to support your case. Otherwise, you can take the following steps if you are not satisfied with the results:
1. Get a Clear Explanation
The insurance provider will issue an official letter regarding your car insurance claim being rejected. So, understand the reasons why your insurance claim was rejected. If you have an agent, get a complete explanation from your agent. Otherwise, another way is to obtain a direct explanation from your insurance provider.
2. Are You Able To Make an Appeal?
Can an appeal be made? Get answers directly from your agent or insurance providers. If your car insurance claim is rejected due to a lightweight reason such as a document or information provided is incomplete, get a better understanding of what actions can be taken. What are the documents and information that were incomplete? How can you submit the missing documents or information needed?
To avoid any rejection of a claim or appeal, make sure that you get assistance from your agent or triple check all your documents before submitting any claim or appeal.
3. Make a Complaint or Dispute To the Authorized Bodies
If you have already made an appeal but it remains rejected, or you feel that the rejection of your car insurance claim is on unacceptable grounds, you may write a dispute against LIAM, PIAM, Bank Negara Malaysia or the Financial Services Ombudsman.
- PIAM – Persatuan Insurans Am Malaysia if your claim is related to general insurance or takaful insurance, such as accident claims involving vehicles.
- Bank Negara Malaysia – Bank Negara Malaysia via BNMLINK and BNMTELELINK, provides services to the public in solving problems that are pertaining to any banking and insurance-related.
- Financial Services Ombudsman – an independent body that resolves disputes and complaints relating to banking and insurance as well as takaful claims.
Each body has its own conditions in receiving consumer complaints. As for an example, for PIAM, complaints must be made within 6 months after obtaining a final decision or rejection from the insurance company. So do ensure that you understand clearly the conditions before submitting your complaint to any of the bodies.
Now that you have learned everything about the causes of an insurance claim can be rejected as well as ways you can take into consideration to avoid it, Qoala hopes that you continue to make the right choice and stay safe on the road. If you are looking for the best and cheapest car insurance, Qoala is the place to go. Don’t pass up this opportunity!