Road accidents are sometimes inevitable, even when you observe safety measures. Fortunately, you have motor insurance that can help cover your vehicle damage.
But what if your insurance claim is rejected?
Yes, your insurer can deny your claim.
But do not panic. Having a denied claim does not have to be the end of your case. But what can you do in such a situation? Find out in this article what you can do when your claim is denied.
What is an insurance claims denial?
“Denial” in this context means insurance claim rejection. In this case, the insurance company notifies you that it will not cover the cost of your vehicle damage. In other cases, the company may inform you that they will not pay in full.
Along with the claim rejection, your insurance company shall give you an official letter or statement detailing why your claim is denied.
Why is your insurance claim rejected?
There are reasons or situations where your car insurance claim can get rejected. You may refer to our previous article for more information: Why Your Car Insurance Claim Might Get Rejected.
What can you do when your insurance claim is denied?
Here are some steps to consider in appealing the insurance claim decision.
Discuss with your insurance agent
An insurance agent plays an important role in facilitating your claim process. You may discuss with your agent to seek clarification on why your claim is denied. Identify the reasons and make sure you understand those reasons.
Sometimes, the errors might be from your end. The errors may include incomplete or missing documentation, which could delay your claim.
Seek clarification from the claims department
If you do not have an agent, you may reach out to the claims department to seek clarification on your insurance denial.
Your insurer may be able to provide you with a thorough explanation of the matter. Ask whether you can appeal or dispute the decision given by the insurer.
You may also file an official complaint to the complaint unit. You will have to provide the necessary supporting documents. On a side note, please make sure you keep a copy of the documents.
Get a lawyer
If there is still no answer despite your complaint to the insurer’s complaint unit, you can consult a lawyer to help you. You may get a legal review for your case that is dismissed by a lawyer. But please ensure that you consult the right lawyer; speak to a lawyer with expertise in the field. For example, get a particular lawyer that specialises in insurance-related matters.
Get help from relevant parties
You can also submit your complaint to the relevant parties with relevant information and documents for their consideration to conduct an investigation.
- PIAM Information Centre
Refer to the General Insurance Association of Malaysia or Persatuan Insurans Am Malaysia (PIAM) for general insurance or takaful-related claims.
- Ombudsman for Financial Services
Ombudsman for Financial Services (OFS) is an alternative dispute resolution channel to resolve complaints between the Financial Service Providers and their respective clients.
However, please note that there are several conditions that you must follow if you want to file complaints to either PIAM or OFS:
- Your insurance policy is with a company that is a member of the PIAM or the Ombudsman for Financial Services (OFS). All PIAM members are members of OFS.
- You and your insurer have failed to reach an agreement and it is within six months of the final decision of the senior management.
- You have not started legal proceedings.
Take the necessary steps to appeal your insurer’s decision
A claim denial can happen under certain circumstances. If you feel it is unfair, you can take steps to appeal the insurer’s decision. You may also seek an expert’s help or file your complaint as your last resort.
We hope this article is helpful to assist you when facing an insurance claim denial.
As a reminder, please also note that driving without valid car insurance is illegal and could land you in trouble. Without valid insurance, it is not even possible for you to apply for an insurance claim in the first place.
Therefore, always ensure your motor insurance is valid for use.
You may simply visit Bjak to renew your insurance. Start by getting free car insurance quotes in just 3 minutes.
Bjak is one of Malaysia’s biggest insurance comparison websites, offering policies from over 10 brands. Get your free insurance quote from Bjak today!
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