WHY SOME MOTOR CLAIMS ARE REPUDIATED?
WHY SOME MOTOR CLAIMS ARE REPUDIATED?
It is said that ignorance of the law is not an excuse, so it is with being ignorant of the terms and conditions (Ts and Cs) of your Motor insurance policy. Many people who take out insurance do not bother to go through the Ts & Cs of the insurance policies, only to discover at the time of claiming that the policy would not respond to certain scenarios. Below are some of the reasons why your Motor Insurance may be repudiated.
- Unlicensed driver – If the accident happens when you or someone else was driving your car without a valid drivers` license your car insurance claim will be rejected. Therefore, ensure that you do not allow any person without a valid driving license to drive your car.
- Unroadworthy vehicle – If you have an accident and your insurer finds out for example that your wipers were not working or your tyres were smooth, your claim could be rejected on the basis that your car was unroadworthy.
- Recklessness – Watch out for the “Failure to take care” clause, also look out for a “Breach of road traffic regulations” clause. If you were exceeding the speed limit at the time of an accident, your claim could be rejected.
- Vehicle used for business – If you plan to use your vehicle for business, you need to disclose this to your insurer. It may result in repudiation if found that the vehicle was being used for business at the time of loss or accident when yet at the time of taking out insurance you mentioned that the vehicle would only be used for social, domestic and pleasure purposes.
- Not informing the insurer within the stipulated timeframe – Your car insurance claim will be rejected if you fail to advise your insurer about the accident, loss or theft within set timeframes.
- Damage from mechanical or electrical breakdown – Your claim will be rejected if the damage occurred due to some mechanical or electrical breakdown and not because of any external impact.
- Willful negligence – a willful act to cause damage or harm to your own property will result in your claim being turned down.