Does the claim stand if the variant of the car is wrongly entered in a motor insurance policy?4/16/2020 There is always a simple rule that people should go with, being transparent to the insurance company. Whenever you buy motor insurance policy online or offline by yourself or via an agent, always remember to share correct information. Incorrect details can let you face the unwanted consequences at the time of claim. There is a lot of efforts and analyzing go on while buying motor insurance to get a policy that protects completely. But, your ignorance or negligence for false information may occur reverse circumstances. According to the IRDAI statistics, about 10% of all vehicle claims are rejected and most of the claims rejected by the insurance companies are for a valid reason. This is highly important to know that misinterpretation of material facts may lead to repudiation of the claim. Therefore, it is important to proper information and avoid issues in future. Vehicles need to be insured before it can be driven on the road. Also it’s your responsibility to aware about the inclusions and exclusions of insurance policy. This helps in maintaining the discipline for policyholders during insurance tenure. However, the insurer's responsibility is to ensure non-genuine claims to be rejected as per the protocol. What is material fact? 'Utmost good faith', is the ultimate mantra for insurance services. This is based on legal principles in the insurance industry. This requires a person to disclose all kind of information related to the insurance policy requirement. The details given by the person who is willing to buy an insurance policy to the insurance company is known as a material fact. This information of insured is used for assessing the level of risk by the underwriters.Be genuine while sharing relevant information for buying insurance policy because that will only help at the time of filing claim. Why disclosing material fact is important? You seek motor insurance to be safe from uncertainty with various coverages that provide financial assistance when in need. It is important for you as well as for the insurer to have complete and genuine information about you and vehicle. Disclosure of material fact is a legal duty before inception of the insurance policy. This helps to analyses the level of risk, if any incorrect information found. It will be taken as serious disobedience instead of asking correct information. This can invalidate your cover as well. If in case, any wrong entry your responsibility is to recheck the policy copy and immediately inform the insurer. They will send your policy copy for correction known as an endorsement.But, if you found as guilty then the insurance company has the right to repudiate your claim. Your policy may also be cancelled; basically it depends on the insurance company how they are going to take actions. Consequences for not sharing correct material facts to the insurer Not sharing material fact may lead to distrust and disobedience of the utmost good faith principle. You should avoid such practices as it will only make you lose. Every insurance company has its own way of dealing with these situations. Terms and conditions also differ depending on the insurers. Also you must go through the given terms and conditions of the insurance company from which you are planning to buy motor insurance. Claim may be rejected on the basis of wrongly mentioned detail at the time of policy buying. Insurers have complete right to avoid or cancel the insurance contract with you. Insurance policy protects you against various uncertain events such as earthquake, lightning, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, burglary, theft, riot, strike, malicious act, terrorist activity and others. Just one motor insurance policy with so many coverages, you can lose all these because of giving wrong information to the insurer. Final Words, as life's nature, it is always uncertain where things never go as per the plans. Incidents like, road accidents, bursting, but people don't focus on these. Life can put you in any sort of situation and you have to deal with it. Well, it's all up to you how smartly you catch up with this. It is important to prevent yourself with precautionary measures and here financial assistance is safety for you. If you don't want to put all your money in medical treatment or health expenses, buy motor insurance to curb this. And, always follow the principle of ‘utmost good faith’.
0 Comments
Leave a Reply. |
manNBlogging is my Passion ArchivesCategories |