Why car insurance claims get rejected in the UAE?
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Car Insurance Claims Rejection can be biggest threat for any policymakers. This means all the damage expense is on your shoulders.
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 that you were not planning on to pay.
Sometimes a minor mistake could make your car insurance claims invalid and would result in loss of money for damage repair.
In order 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.
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.
- Driving under the influence of drugs or alcohol,
- Not having a valid driving license
- 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
- Not mentioning the actual model or type of your vehicle,
- Mentioning it as GCC (manufactured for Gulf regions) whereas it could be an imported vehicle.
- 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
If you are planning to modify your car or thinking about making changes to improve the car’s performance, safety or value then it is best to inform your insurer about it beforehand.
This will help you to know the extent of coverage that your insurance policy provides and will help you to make a better decision.
Also, it is better to keep your insurer informed and be aware of what is not being 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 being 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 you are buying a policy it is mentioned that the policy covers 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 business, your claim would be considered void.
6. Crossing the threshold
There are certain thresholds set by all the insurance providers 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 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
In case of being involved in an unfortunate event, try to file your claims as early as possible.
As 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 the accident.
To address this issue 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 that are 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 out 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.
- 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.
- Similarly, if only the windscreen is damaged and the rest of the car is absolutely fine, your insurer could deny paying for it.
- If the damages to the car are caused by natural disasters like storm or flood
- 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.
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.
Originally published Nov 04, 2019 12:07:03 PM, updated May 11, 2021