Millions of consumers pay their car insurance premiums, thinking that their vehicles are safely covered, only to find themselves frustrated when the time comes to claim. The truth is that insurance companies completely or partially reject thousands of claims every year. In some cases, the reasons for these rejected claims may be unfair and illegal, entitling consumers to fight the insurance companies. Sadly, however, the insurance companies will be entitled to refuse payment in some cases. Read on to learn about five of the most common reasons for rejected claims, and how to avoid them happening to you.
When can my claim be rejected and how can I avoid it?
Insurance companies can cite a wide variety of reasons for not granting a claim. Here are five of the most common:
- The customer’s premiums are not up to date: If you have missed even one payment, your cover is not up to date and the insurance company is entitled to reject your claim. This can be easily avoided by ensuring that your premiums are always up to date. If you have a debit order in place, check each month to make sure that the premium has been deducted.
- Non-disclosure or material misrepresentation: When you join an insurance plan, you must disclose all relevant information clearly and accurately to ensure that you are covered. If the time comes to claim, and you have omitted an important detail such as information about previous accidents or any medical conditions that could affect your driving, your insurance company can, and most likely will reject your claim.
- Unspecified drivers: Almost all car insurance policies require you to specify any other driver who regularly drives your car. If an accident occurs with someone other than you driving, whom you have not nominated as a secondary driver, they may be entitled to refuse to pay, depending on the wording of your insurance policy. Be sure to nominate your secondary driver/s and check your policy from time to time to ensure that it reflects this.
- Narcotics use or drunk driving: If it is proven that you were under the influence of alcohol or drugs at the time of the accident, your claim will be rejected. Whether you drive carefully or not, cause the accident or not, as long as you cannot be proved to be under the influence, your insurer must pay.
- No tracking and security device: If your policy requires you to have a tracking device, immobiliser or other device, and you either do not, or the device is not working because of some fault on your part, your claim will be rejected. Avoid this by installing and servicing the required devices.
Can I get the claim paid?
It is possible to appeal a rejected claim, as long as none of the reasons above apply to your case. If you feel that the rejection is unwarranted, and you have proof to that effect, you are well within your rights to seek legal advice and possibly even take the matter to court. Consult an insurance law attorney to see if you have a good case.
Blake Attorneys is a legal firm in Johannesburg. We have extensive experience with insurance law in South Africa and can help you with your rejected insurance claims. Contact us for more information.