Introduction
Real-life scenarios that cause insurance claims to be rejected happen more often than many drivers realize. Many Malaysian motorists assume their policy covers all situations, but exclusions and minor mistakes can result in a full claim denial.
Common mistakes include using the car for purposes not covered by the policy, being in an accident without wearing a seatbelt, or failing to report incidents promptly.
Common Situations Leading to Rejected Claims
1. Using the Car Outside Policy Terms
Personal vehicles used for e-hailing or deliveries without additional endorsements can result in claim rejection since the original policy does not cover such activities.
2. Delayed Accident Reporting
Failing to report to the police or insurer immediately after an accident increases the risk of claim denial.
3. Mistakes During Insurance Renewal
Incorrect owner or vehicle details, or failing to manage No Claim Discount (NCD) properly, can cause insurers to reject claims.
4. Not Following Safety Regulations
Passengers not wearing seatbelts or driving under the influence may result in the policy not covering injuries or damages caused by negligence.
Tips to Avoid Claim Rejection
- Ensure your insurance policy matches the intended use of your vehicle
- Report accidents promptly and thoroughly
- Double-check policy information during renewal to avoid errors
- Follow all road safety regulations strictly
Conclusion
Real-life scenarios that cause insurance claims to be rejected highlight the importance of staying vigilant about your policy, vehicle usage, and post-accident procedures. With accurate reporting, compliance with insurance terms, and strict adherence to safety rules, the risk of claim denial can be significantly reduced.
Read More:
Important to Check Your Policy Before Renewal
Common Insurance Renewal Mistakes Drivers Make
Guide to Choosing the Right Insurance Coverage Based on Risk
