Imagine this. You were driving home one rainy Saturday night. Upon reaching the intersection, you were trying to beat the red light. However, you were headed into a collision course with 2 more, one motorcycle and an SUV. And the rest is history.
The next day, you called up the insurance company to file for a claim. You submitted the required claims documents and the insurance company promised to revert to you after a thorough review.
To your surprise, your insurance claim for repair was denied. Reason: you failed to pay the premium of your car insurance policy.
Non-payment of the car insurance policy. is the most common reason why car claims are denied. In the same manner, filing a claim under an expired or unrenewed policy is also a valid ground to deny the claim.
As a general rule, when filing for a claim, the status of your policy should be updated, meaning, it is fully paid. There are many reasons why non-payment of premium occurs but any non-life insurance provider can deny claims when the most basic requirement for a policy to be valid has been neglected.
Another reason for the denial of claims is late reporting. The accident happened last December 2020 but you only had time to file it after six (6) months. Accidents, whether minor or major, should be reported to the insurance company immediately or up to 30 days only.
If the accident involves a third party but and both of you cannot wait for the insurance policy owner to claim, it is common occurrence when a repair is sought elsewhere prior to reporting. This is considered unauthorized repair which is another reason why a car claim can be denied. When you decide to have your car repaired before reporting the accident, it prejudices the Insurance Provider’s right to inspect the damaged unit. This is ground to deny the claim by resorting to repair first without securing the approval of the Insurance Provider.
Remember, when getting a car insurance policy, inquire with your Financial Advisor or from the company, the maximum time allowed by the insurance company to report an accident or damage, and seek advice from your Financial Advisor when filing a claim to ensure that your claim is still valid.
There are many people who don’t want to go through Financial Advisors but the truth is, they should be the go-to-guy esp. in times of claims.
In the Philippines, when you try to go direct to an Insurance Company for your insurance company, your life can be more convenient when you can count on a reliable and experienced Financial Advisor to guide you through the claims process.
Ronnie Reyes has been a Non-Life Financial Advisor since 2001. For your non-life insurance requirements (home, motor, travel insurance), you may reach out to him for a free quote at the following contact details:
Mobile: 0917 796 2530
or send him a DM at LinkedIn @iamronniereyes.