Why car insurance claims get rejected in the UAE?

Car Insurance Claims Rejection can be biggest threat for any policymakers. This means all the damage expense is on your shoulders.

Why car insurance claims get rejected in the UAE?

The UAE law requires all the drivers to hold car insurance.  

Choosing the appropriate car insurance policy is a vital step to cover your liabilities, both legally and financially in any unfortunate event that might take place.

After investing in something like that, nobody wants to get notifications about their car insurance claims being rejected.

This could cost you a significant amount of Money you were not planning on paying.

Sometimes a minor mistake could invalidate your car insurance claims and result in a loss of Money for damage repair.

To save up on such costs, it is very important to know the main reasons that could make your insurer deny your car insurance claims during the tenure of your policy.

Major Reasons of Car Insurance Claims Rejection:

1. Not following the traffic laws

Your insurance claim will most probably be rejected if traffic rules and regulations were not being followed when the accident took place.

1. Driving under the influence of drugs or alcohol,
2. Not having a valid driving license
3. Driving on a road where traffic is not allowed

Not only it’s against the traffic violation will not only put the driver on jail but hefty fine is charged

Hence having a bad record can lead to the rejection of the claims in the future.

2. Not revealing complete details

At the time of buying a policy, some people might not reveal all the details or try to hide some of the truth to avoid higher premiums.

This might seem harmless at the time but it will have an effect later on.

This includes not

1. Not mentioning the actual model or type of your vehicle,
2. Mentioning it as GCC (manufactured for Gulf regions) whereas it could be an imported vehicle.
3. Or wrongfully stating that the driver was not involved in any accidents recently.

These false details could help you to get a lower premium policy but once you are going to make a claim after an accident, the truth will come out.

All insurance companies cross-match the details at the time of claim and reserve the right to cancel your car insurance claims in case of false information.

3. Making changes/modifications to the car

Suppose you plan to modify your car or consider making changes to improve the car’s performance, safety or value. In that case, it is best to inform your insurer beforehand.

This will help you know the extent of coverage your insurance policy provides and help you make a better decision.

Also, it is better to keep your insurer informed and be aware of what is not covered by your policy rather than having your claims denied at the time of need.

4. Lock your car

Leaving your car doors unlocked could be an innocent overlook.

But it not only leaves your car open to the risks of theft but could also get your car insurance claims denied.

If your car gets stolen or is wrecked/vandalized and somehow the insurance company finds out that the doors were not locked at the time of the incident, then they are free to deny paying for the loss, or in some cases, they might cancel your policy.

5. Using your car for business purposes

Usually, when buying a policy, it is mentioned that it only extends to the driver’s personal use of the vehicle, and any business-related activities are not covered.

While filling out the application for the policy, one might even check this box.

Hence, at the time of claiming, if it is found that the vehicle was being used to deliver goods, transportation of passengers, or any other activity that might be considered a business, your claim would be considered void.

6. Crossing the threshold

All the insurance providers set certain thresholds, and if you go above them, they can deny providing you the service regardless of what is covered by your policy and what’s not.

If you go over a certain limit, your insurer could deny your claim; for example, the coverage for key replacements and car rentals is only provided if the claim is made only one time during the term of the policy.

While buying a policy, make sure you are aware of the differences among different insurance providers, especially regarding limits of coverage for medical expenses in emergencies and damage to personal belongings in the vehicle.

7. Claim on time

If you are involved in an unfortunate event, try to file your claims as early as possible.

Some insurance companies have a time limit after which they do not provide insurance services against your claims.

Companies have set these limits so that the claims are only made for the damages caused by accidents.

To address this issue, the insurance provider could also demand significant evidence to prove that the claims being made are not for something that has been left unaddressed from a prior accident.

8. Lending your vehicle

Preferably only the owner of the car and the drivers named in the insurance policy should be driving the car.

If a third person is driving your car and an accident occurs, your car insurance claims can be denied.

Therefore, think twice before loaning your car to someone who is not named driver in your insurance policy.

9. Know your policy

For most people, the premium they pay for their insurance policy carries more significance than what it covers for.

This does not mean that the price of the policy determines if it’s better or worse but just focusing on price might cause problems later on.

1. If the car was damaged or an accident happens while the car was being driven off-roads or across the border to Qatar/Oman then your insurance company or policy might not provide coverage for it.
2. Similarly, if only the windscreen is damaged and the rest of the car is absolutely fine, your insurer could deny paying for it.
3. If the damages to the car are caused by natural disasters like storm or flood
4. Or your personal belongings were stolen from your car.

Your insurance policy might not cover for it even if you have a comprehensive one.

This varies from company to company and policy to policy.

Therefore, while looking at the price of the policy also be aware of the limits and coverages of policies.

FAQ’s

How do I claim car insurance for an accident not my fault?

If you have to claim a car insurance that is not your fault, you can claim the other driver’s car insurance company via third party car insurance.

Will my insurance pay if it wasn’t my fault?

You have to pay for the losses for the other driver, passengers and anyone else. 

What must you pay before the insurance company will pay a claim?

You would have to pay deductibles. This is the amount that before the insurance company will pay anything on claim.

Conclusion:

Trust your insurer and be aware of the rules and regulations regarding car insurance.

Knowing the reasons that could get your car insurance claims denied could help you to avoid them.

In the end, you can have a smooth relationship with your insurance company without having any inconveniences along the way.

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