My Motor insurance claim got rejected – Reasons & Explanation

We have received over 100 emails, seeking advice on the motor insurance claims, mostly about rejected motor insurance claims and asking what they can do about it. The interesting part of it is most of the grievances are against the popular insurance companies, we clearly understood one thing, and that is, motor insurance claim issues have nothing to do with the insurance company; it’s all about the client and you are to be blamed for the rejection of your insurance claim.

As a vehicle user since 2006, I have encountered many accidents and all my insurance claims were paid on time or without any problem, I have compiled my experience and knowledge of industry experts to construct this short read, this short read will take you through the process to follow and possible reasons for the rejection of a motor insurance claim.

Related: Life Insurance – Should you have one or not?

What does insurance company expect you to do in the event of an accident or a loss to your vehicle

vehicle insurance

Intimate / Inform

Irrespective of the vehicle class or type, all insurance companies expect you to call and inform about the accident on the spot. Make sure to take some snaps before moving your vehicle to a side, then call the dedicated call centre and inform about the accident or damage.

Follow the instructions

You will get some instruction from the call centre officer, make sure to follow the instruction, possible instructions can be

  1. Wait for the accident accessor to come and inspect
  2. Lodge a police complaint and get a copy of the complaint
  3. Fill the claim form and submit your driving license copy
  4. Get a repair estimate from the agent/authorised repairer
  5. Start the repair after the estimate is approved etc.

Provide sufficient documents

Very simple, just provide the basic documentation requirement such as the copy of your driving license, insurance certificate, claim form and estimates/bills.

After repair inspection to pay your claim

Just show your vehicle to the nearest branch of your insurance company and that’s it, you will receive your claims within a shorter period.

Related: Vehicle Leasing – Key things to consider

Hold your anger, I can hear you scolding me saying “we followed all the steps mentioned above and still our claims got rejected”. True enough, still there are chances of your motor insurance claim getting rejected, to understand this, you might need to read your policy document very carefully, you never did that and 99% of the insured fall into the same category, they never read the policy document. Here are the possible reasons for a rejection.

Possible reasons for a motor insurance claim rejection

insurance claim

Vehicle usage

You can obtain an insurance based on the purpose, it can be a private usage, hiring or rent a car. If your policy obtained for private usage and at the time of the accident it was used for a hiring purpose, then the claim will get rejected.

Not covered under the policy

Let’s talk about the popular issue, side mirror theft is a popular issue to many vehicle owners, the insurance company will cover your loss only if your policy obtained under private car category (there can be exceptions, check before obtaining your policy), your claim will get rejected if the policy obtained under hiring or rent category.

Previous accident damages

The insurance company will not hold any liability for previous accident damages, there is a chance of part payment of the claim or full rejection. Eg: your vehicle’s front buffer already has damage on the right-hand side and the new damage is on the left-hand side, you will receive only a percentage of the repair cost.

Failing to take maximum precaution

The signing of an insurance proposal means you are in agreement to take maximum precaution to avoid an accident or potential damage, failing might result in rejection. Eg: Parking under an under construction site is asking for trouble and you are failed to take maximum precaution.


If there is a mismatch in the verbal intimation and the damage or if there is no way of such damage, this will result in the motor insurance claim rejection, make sure to give accurate information when intimating the accident. Eg: a motorbike collided with your vehicle’s rear bumper and you are claiming for the front head light damage.

Not possessing a valid driving license and Drunken Drive

No explanation needed and don’t call the insurance company when you don’t have a driving license or when you are drunk.

These are the few possible reasons for motor vehicle insurance rejection and it can vary depending on the case, remember the process and don’t expect the insurance company to pay your claim when you don’t follow the instruction laid by the insurer. Let us know your claim rejection story.

Got any questions or need any clarifications? Please feel free to contact us or write an email to,  We can assure you the best possible advice from industry experts.


Leave a Reply

Your email address will not be published. Required fields are marked *