When an insurance company repudiates your claim, they have rejected liability for the claim. This comes across as disappointing news to clients who had banked their hopes on their insurers to ‘fix the damage’.
Clients may resort to litigation when they are not in agreement. The result is often unfavourable. It is worthy to note that being ignorant of policy terms and conditions of your insurance policy does not absolve you of claim repudiation.
Motor claims tops the list of frequently repudiated claims. It is therefore imperative to take note of key conditions and terms generally included in almost every motor insurance to avert possibility of your claim being repudiated. Here are reasons your motor claim may be repudiated.
No Valid Driver’s License. If the person in charge of the vehicle at the time of the accident does not possess a valid license, the insurer will not honour the claim.
Driving whilst drunk or on any intoxicating drug. In a drunk or intoxicated state, you are not in the right state to drive and more importantly, it is illegal to drive.
No pre-loss inspection. Some insurers insist on inspecting your vehicle when you buy a policy. This is to ascertain if there are pre-existing damages to the vehicle. Failure to comply may lead to your claim being repudiated.
Driving an ‘un-roadworthy’ vehicle. If the relevant authorities have not certified and passed your vehicle as roadworthy, your motor claim may be repudiated in the case of an accident.
Reckless driving. If there is evidence of driving recklessly, say from the Police, the claim may not be honoured.
Wrong use of car. At the inception of a policy, insurers ascertain the use of car – whether for private or commercial purpose – to fairly calculate premium rates. In the event of an accident, if it is observed your car was used for a purpose other than what was stated, the claim will be repudiated.
When you load your vehicle above the approved maximum seating capacity, the claim will not be paid.
Non-disclosure of material fact. Material fact is any information that will be relevant to the insurer in computing your premium. It could be your claim history from other insurers, rejected applications for insurance and the reasons, etc. If you wilfully fail to disclose any of these information, your motor claim faces repudiation in the event of a damage.
Some motor policies may be tailor-made for clients as opposed to a general policy. Before the inception of the policy, it is recommended that you enquire from your insurer if there are more specific conditions in the policy you are buying.