Reasons why your car insurance claim could be rejected in Dubai
Insurance is the second largest industry in the world. There is no question in the fact that the growth and profit of the business come from unclaimed policies and rejected claims. Every year insurance companies reject plenty of claims completely or partly on the grounds of several conditions which were not met or breached by the policyholders. In Dubai also, the case is not any different. These are the most common reasons why accident claim rejections in Dubai occur.
- Not Updated Premiums
This is the most common reason why car insurance claims in Dubai are rejected. When you own a car, it is necessary to have car insurance in Dubai in order to reduce the risk during the incidence of unforeseen events. But, many customers fail to update policy from time to time by paying the premium and renewing the car insurance in Dubai. But normally, insurers provide a grace period to pay the outstanding premium and to renew the policy. This might be limited to a certain number of days and only the clauses in your policy can decide the actual period. However, it is always recommended not to wait for the grace period to pay the premium in order to ensure protection to your vehicle.
- Faulty Information on the Policy
Stating incorrect information on the car insurance policy in Dubai to lower the premium and to retain the benefits is a common occurrence. A lot of times, people fail to realize that by doing so they are not helping themselves. In the event of a car accident in Dubai, your vehicle is in financial risk. Also, the premium will not cover the damages caused by the accident to your car or to the other vehicle if you have put on the wrong information in the paper. Please keep in mind that an insurer has the complete right to reject the claim and to refuse payments if the information entered is wrong and misleading in nature.
- If the driver does not have a license
A normal reason why car claims in Dubai are rejected is when the insurers detect that the driver doesn’t have a valid license in the country. It doesn’t matter if you have a license from the home country in case of expats. If you need to drive in Dubai, you need a valid UAE license. As long as you do not have one, you are not authorized to drive. Besides other police charges, there will also be a rejection of insurance claim.
- Poor maintenance of the vehicle
In Dubai, it is necessary to have and maintain certain standard regulations in order to use your vehicle on public roads. The set of regulations might look elaborate, but in practice, the system only asks for maintaining high quality for the vehicle. In order to become your car roadworthy, the Engine and VIN numbers should match as that of the registration document. No tampering is permitted. The doors should open easily and the car should not be rusted. All the technical aspects in the car such as the speedometer, odometer, all seatbelts, and all lights and indicators must be in working order. The tires should maintain the correct sizes and dimensions and there should not be any leaks. The wheel alignment should be proper and the engine should not have any damages or leaks. The steering should work correctly and the exhausts should be maintained without noises or smoke.
- Driving under the influence of alcohol or drugs
It is a very serious offense in Dubai. Driving under the influence is very dangerous as well. If you drive under the influence and you enter into an accident, the chances are absolutely nil for you to the claim insurance. Hence driving under the influence should be avoided in any circumstance.
- Exceeding limits of the claim
The insurance policies have certain limits in general. Normally, each policy covers certain types of risks. Hence the company will not pay for the full loss if a particular limit mentioned in the policy has been exceeded. So, there will be sometimes a huge difference between the claim and the limits.
- Reckless driving
If you drive recklessly without observing the speed limits carefully, your claim will be rejected by the insurer. Also be careful about leaving the scene of the accident. You need to be accountable for the accident and you have to contact the emergency number and report the accident. You will also need to stay within the premises until the arrival of the authorities. If you hit and run, your claim will be refused.
- Satellite tracking and devices
These days when it comes to advanced facilities in a car if your insurance is conditional upon the installation and proper working of satellite devices, if they do not work at the time of an accident, your claim will be rejected.
- Do not waste time
When a car accident occurs, time is the key to claim insurance. It is always recommended to act fast and to claim for damages without wasting much time. Some car insurance policies have clauses that will allow the insurer to decline a claim if it wasn’t reported in a timely manner. Also, damages caused by accidents can lead to further mechanical problems over time if the initial damage is not fixed quickly. Also, please remember that the claims are likely to reject if the damage isn’t directly caused by a reported accident.
Now that you know about the reasons because of which your claims could be rejected in Dubai, do not forget to renew the policy on time or to maintain your car well. While buying car insurance in Dubai, be responsible and learn the policy. You have to know the risks covered and the limits of your claim. If you go and signup for any policy, there could be surprises when you approach the company after an accident. Also, in the event of an accident, behave responsibly and cautiously. If you have further questions, call on …..