Have you ever been in an accident and tried to claim, but been rejected? Well, this is not an uncommon occurrence in the insurance world. We, the consumers, often find ourselves having to spend ridiculous amounts of cash every month on car insurance premiums, however at the end of the day, what we thought was covered, sometimes turns out not to be!
This year the Ombud resolved 9,474 complaints out of 9,779 formal complaints lodged in the review period, recovering a total of R87.2 million for consumers! This is according to the 2019 annual ombudsman’s report.
Although many of the complaints were resolved and consumers left with their pockets filled, it doesn’t mean that every rejected claim will be resolved.
It really is important to read your contract with your insurer properly before signing on the dotted line in order to ensure that you are aware of potential instances that may result in a rejected claim.
We did a bit of research of our own and have compiled a list of reasons as to why many consumers’ claims are in fact rejected.
- Premium Payments Are Late
If you don’t pay your premium or you make a late payment, there is a strong possibility that, should you claim, your insurer will reject your claim. However, by law, insurance companies have to have a clause in their policy document that states that consumers have at least fifteen days in which to make outstanding payments. I guess that if you don’t pay for the service, you can’t expect the goods!
- Liar Liar!
This is the worst thing that you can do because if your insurance provider finds out you have lied about things such as a previous claims record, break-in insurance cover, prior rejected claims, credit record judgments, your insurance claim can reject your claim.
- Unlicenced or Unspecified Driver
It’s always nice to be driven around but if it is in your car, you need to ensure that whoever is driving is listed as a specified driver of the vehicle. If this is not specified and you are in an accident, your insurance is entitled to reject your claim. The same goes for an unlicensed driver. If your car is being driven by someone who is unlicensed, your car insurance claim will be rejected immediately.
- Reckless Driving or Driving Under the Influence:
We are all guilty of having a glass of wine at dinner and then potentially getting behind the wheel. If you are in an accident and you are found to have been driving under the influence, not only is this illegal, but your insurance will most likely reject your claim. There is a clause in every insurance policy entitled the “Failure to Take Care” clause. Essentially this means that if you are driving recklessly, your insurance provider could reject your claim just on that basis. This would be proven by witnesses and other people in the accident (if there was any).
If your car is not roadworthy and you find yourself in an accident, your vehicle will be sent for inspection. If your vehicle fails the inspection, the insurance company will not pay for your claim because your vehicle will NOT be roadworthy.
If you have passed these top five points, why not continue reading the full article to find out other potential reasons as to why your car insurance claim might have been rejected.
To read the other 4 reasons, click here.