Don’t have your car insurance claim rejected over the silly season

WHETHER you are planning a cross-country road trip to visit loved ones over the festive season, or whether you are jetting around town locally, it is important to ensure that the minute you drive off your property you have the peace of mind that no matter what happens, your insurance will cover you. “You never know when you’re going to be involved in an accident, so to avoid having your insurance claim rejected, it’s important to make sure that your policy information is up to date and that your car is in good working condition and compliant with the rules of the road,” says Christelle Colman who has many year’s experiences in the car insurance industry.

The 2018 Ombudsman for Short-Term Insurance (OSTI) Annual Report revealed that the majority of considered complaints for motor vehicle claim disputes (74%) were for accidental damage. The primary cause for complaints was the amount offered for the settlement of claims and the secondary cause for complaints was rejections based on the insured’s alleged non-disclosure or misrepresentation of underwriting details at sales stage.

In the pursuit of avoiding futile claims Colman unpacks the 10 most common reasons for car insurance claims being rejected by South African insurers.

1 Driving recklessly or under the influence

Driving under the influence of alcohol or drugs is a criminal offence, as such motorists that are caught driving under the influence risk having their cover immediately nullified. However, an insurance claim can also be rejected if a driver is believed to have acted in a reckless manner and this behaviour is believed to be the cause of damage or destruction to a vehicle.

2 Premiums aren’t up to date

The simple rule of thumb here is when no premium is paid for a specific month, there will be no cover. So regular and timeous payment of premiums is very important to ensure you aren’t left without cover when you need it most.

3 Unlicensed or unspecified drivers

When a motor insurance policy stipulates that cover is only provided for a specific named driver, an insurance claim will only be successful if this driver was behind the wheel at the time of the incident. Should an accident occur while another person is driving the car, the claim may be rejected as the policy only covers the named driver. The claim will also be rejected if the driver of the vehicle was not in possession of a valid driver’s license at the time of the incident.