Insurance policies are documents filled with terms and conditions that define your coverage. But while these caveats may seem designed especially to stop you from claiming the full advantages of your policy, keep in mind that car insurance providers do not unnecessarily reject claims. As long as you are truthful about the details, you will be liable to receive full benefits of the policy as per the applicable terms and conditions.
The two major types of car insurance policies offered in UAE are namely comprehensive policies and third-party policies. Third-party insurance policies offer very basic insurance coverage. In the UAE, it is illegal to drive without car insurance, third-party insurance is also the most fundamental level of policy you can opt for. Much like the name suggests, third-party car insurance covers damage to the third-party – i.e. the person whose car or property has been damaged by the policy holder’s vehicle.
Comprehensive plans, on the other hand, cover the damages caused to your vehicle and that of the third-party as well. Depending on which features you have opted for, comprehensive car insurance may include theft, fire and even off-road coverage.
When it comes to claiming car insurance benefits, especially in the case of comprehensive policies, it often shocks people when their claim request is rejected. You expected the policy to cover you for such a situation but are left with heavy repair bills and diminishing faith in your car insurance provider. However, the blame doesn’t lie entirely with your provider.
Let us take a look at why your motor insurance claim may get rejected. Declined claims generally fall under two categories: range of policy and user error.
Range Of Policy
The range of a policy or the extent of your coverage can be thought of like the coverage you have opted for. When damage caused to your vehicle falls outside this defined range, it results in a rejected claim.
Consider the following example. During a bad sandstorm, a tree falls on your parked car and cracks the windshield. In such a situation, if you as a vehicle owner have not opted for coverage against natural calamities, you will have to pay for the entire damage repair expenses out of your pocket. Before filing a claim, be aware of how far the scope of your car insurance coverage stretches.
- Geographical Scope
Most insurance policies are valid only in the seven emirates of the UAE. If you find yourself traveling to neighboring countries such as Oman, it is advised to opt for an Oman extension add-on in your policy. If an accident occurs outside the geographic scope of your car insurance policy, your claim will be rejected.
- Set Limits
Sometimes a claim gets declined despite having coverage. Such scenarios occur when you have exhausted the sum assured. Limits may be imposed on the services in your insurance policy on the basis of various factors such as a number of times the service has been availed, total distance travelled, etc.
To err is human and in the case of car insurance claims, user error is the leading cause of rejection. Keep the following in mind to prevent any future inconvenience.
- Inaccurate Details
Any discrepancy in submitted details of your vehicle can cause issues during a claim. This could be the wrong model or make of the car, incorrect information on your registration card, etc.
Modification of a vehicle can render an insurance policy void and even convert your vehicle from a GCC type vehicle to a non-GCC one (which most insurance providers do not cover). According to a statement issued by the UAE cabinet, owners of modified cars need to request a modification certificate from the Emirates Authority for Standardization & Metrology (ESMA). It is also suggested to inform your car insurance provider of any modifications for the vehicle, to ensure you stay covered.
- Illegal Activity
Breaking rules and using your vehicle for illegal purposes will not only void your insurance policy but can also have severe legal ramifications. Examples of illegal use include driving under the influence, driving without a valid license, using a personal vehicle for commercial purposes and much more.
In case of theft of a car or of any personal belongings in the car, if it is found that the vehicle was left unlocked – the claim will not be entertained on grounds of personal negligence. Other common cases of negligence include not maintaining the car in a roadworthy condition.
- Fleeing the Scene
One of the most important things to remember after an accident has occurred is to remain on scene and contact the police for investigation purposes. The police report is an important document that adds credibility to the claim request. On the other hand, fleeing the scene invariably results in a rejected claim, fines from the police and impounding of your car for 7days-60 days depending on the severity of the accident. Note that the same is applicable even if you hit an inanimate object such as a divider or streetlight.
Over to you
Be sure to stay up to date with any changes in your car insurance policy and talk to a representative for further clarifications on policy limits. Make sure you fill in the claim form carefully that there is no room for any discrepancy. Don’t forget to attach the required documents.