Most motor insurance companies have the right to deny a car insurance claim. If you have gotten into an accident, your insurance company should compensate you for all damages. But, if there has been any suspicious activity, your claim will get rejected. This can be costly and frustrating. Most insurance companies will settle claims in case of natural perils, theft, and fire, but at the same time it has the right to exempt a claim.
Common reasons why motor insurance claims are denied
Following are the common reasons why motor insurance claims are denied:
- If your vehicle was overloaded with excess passengers or goods than the vehicle’s capacity resulting in damage or loss to the vehicle.
- Damage to the tires except when damage was caused during the accident.
- If you were using your vehicle for purposes that are excluded from your insurance policy. For instance, teaching someone to drive.
- If the accident took place outside the geographical area which is not listed in your policy.
- Accident caused outside the public road.
- Failure to obey traffic rules.
- If you have been involved in a felony or have fled from the scene post the accident.
- Insurance claims made 3 years after the accident.
- Contract was based on misleading and false information.
- If the accident or damage was caused when you were under the influence of drugs or alcohol which could’ve altered the control of your vehicle.
Also Read: Car Insurance Claim process
Motor insurance in the UAE
There are several motor insurance providers in the UAE that offer comprehensive and third party liability. If you are taking a motor insurance, ensure that you get covered from a reputed provider and it includes GCC cover, roadside assistance, and car hire.
Following are the things that are usually included in a motor insurance:
- Loss of damage cover your car alone.
- Third party bodily injury cover the public in case you harm someone.
- Third party property damage cover the public in case you damage other cars.
- Ambulance services cover for any ambulance service required immediately after a car accident.
- Cash benefit will cover the daily cash amount when your vehicle is being repaired.
- Off-road coverage is applicable only when you are driving off-road. This feature is applicable for 4x4 vehicles only.
- Personal accident benefit pays a lump sum amount in case you or the passenger is harmed in a car accident.
- Medical expenses will cover for any emergency treatment required post a car accident.
- Claims single point of service will assign you an individual who will be the single point of contact to take care of your concerns.
- GCC cover is extended to other GCC countries.
- Natural disasters will cover your car if it is damaged by any natural disaster.
- If your car has been damaged during riots, civil commotion, etc., it will be covered.
- Personal belongings cover will cover for items that are left inside your car and is damaged by fire or stolen.
- Windscreen damage will cover windscreen, glass roof, and windows. You need not pay any excess and your insurance provider will not count it as a claim.
- Lock replacement will cover keys and locks of your car if it is damaged during an attempted break or a theft or if you have lost the key.
- You get cover if your car has been damaged while it was in custody of the valet.
- If agency repair cover is taken, your car will be taken to an authorised dealer for repairs.
- Car replacement will waive the depreciation for up to 1 year if your car has been declared as a total loss.
- If you opt for roadside assistance, you will get assistance if you have a flat tire, require towing or battery boost, or if you have an empty tank.
- Track day will cover your car if it is driven on a race track.
- If you have opted for a no claim discount, you get a discount on your premium for every year you drive without making any claims.
- No claim discount protection allows you to maintain the discount you gained even after a claim.
- RTA inspection service ensures that your car will be picked up registered with the Ministry of Transportation.
- When you opt for driving other vehicle cover, you get third party liability cover when you are driving other cars.
- Third party individuals or property is covered if there has been an accident while loading or unloading your vehicle. For instance, if the car mirror is broken while taking it out and the delivery man is injured, you get third party cover.
- Car hire cover will provide you with a car when your car is being repaired.
The above mentioned benefits are most common and are offered by most insurance providers. You need to know what are the covers you absolutely require and choose one that best suits your needs.
Also Read: Top 10 checklist for your Car Insurance