Learn the most common car insurance claim rejection reasons in India and Assam, and how Anuja Solutions helps you avoid claim denial.
By Anuja Solutions – Motor Insurance & Claim Support Expert
Car insurance is bought for peace of mind.
But many vehicle owners face a shock when their insurance claim gets rejected.
In most cases, claim rejection happens not because of fraud, but due to lack of awareness.
This guide explains all major car insurance claim rejection reasons in India, with simple explanations and tips to avoid them.
🔹 Top Car Insurance Claim Rejection Reasons (Explained Simply)
1️⃣ Delay in Intimation to Insurance Company
❌ What happens:
- Accident happens
- Vehicle is repaired first
- Insurance company is informed late
🚫 Result:
Claim gets rejected due to late intimation
✔ How to avoid:
- Inform insurer immediately (within 24 hours)
- Call customer care or inform through app/agent
- Even if FIR is pending, inform first
2️⃣ Driving Without Valid Driving License
❌ What happens:
- Driver license expired
- Wrong vehicle category
- Learner license without supervision
🚫 Result:
Straight rejection
✔ How to avoid:
- Always check:
- Validity date
- Vehicle class
- Keep soft copy on phone
3️⃣ Drunk Driving or Intoxication
❌ What happens:
- Alcohol detected
- Medical report or police FIR confirms intoxication
🚫 Result:
Claim rejected immediately (no negotiation)
✔ Important:
Even third-party claims may face legal complications
4️⃣ Policy Expired or Lapsed Policy
❌ What happens:
- Policy expired before accident
- Grace period misunderstood
🚫 Result:
No claim possible
✔ How to avoid:
- Renew policy before expiry
- Avoid even 1-day gap
5️⃣ Non-Disclosure or Misrepresentation
❌ Examples:
- Previous accident hidden
- CNG kit installed but not endorsed
- Wrong NCB declaration
🚫 Result:
Claim partially or fully rejected
✔ Tip:
Always declare:
- Modifications
- Past claims
- Usage type (private / commercial)
6️⃣ Claiming Damages Not Related to Accident
❌ Examples:
- Old scratches included
- Wear & tear claimed
- Mechanical failure shown as accident
🚫 Result:
Claim reduced or rejected
✔ Truth:
Insurance covers sudden & accidental damages only
7️⃣ Using Vehicle for Commercial Purpose (Private Policy)
❌ Example:
- Private car used for taxi / business
- Goods carried illegally
🚫 Result:
Claim rejected due to policy violation
✔ Rule:
Usage must match policy type
8️⃣ FIR Not Filed (When Mandatory)
❌ FIR is mandatory when:
- Third-party injury/death
- Theft claim
- Major accident
- Fire or riot
🚫 Result:
Claim may get rejected or delayed
✔ Tip:
Ask insurer/claim advisor whether FIR is required
9️⃣ Repair Done at Non-Network Workshop (Cashless Claim)
❌ What happens:
- Vehicle repaired without approval
- No survey conducted
🚫 Result:
Cashless claim denied
(You may still get reimbursement, but reduced)
✔ Advice:
- Always wait for surveyor approval
- Use network workshop for cashless claims
🔟 Missing or Incorrect Documents
❌ Common missing documents:
- RC copy
- Driving license
- FIR
- Claim form
- Repair invoice
🚫 Result:
Claim delayed or rejected
✔ Solution:
Submit documents properly and follow up
🔹 Claim Rejected? Don’t Panic.
A claim rejection is not always final.
You can:
✔ Ask for written rejection reason
✔ Submit clarification or missing documents
✔ Escalate to insurer grievance cell
✔ Approach IRDAI if required
🔹 How Anuja Solutions Helps in Claim Rejection Cases
At Anuja Solutions, we help customers by:
✔ Explaining rejection reason clearly
✔ Coordinating with insurer & workshop
✔ Guiding on re-opening or escalation
✔ Preventing mistakes before they happen
We believe claim support is more important than policy
sale.
Frequently Asked Questions: Insurance Claim Rejection in
India
The most common reasons include non-disclosure of facts, expired policy, delay in claim intimation, incorrect or incomplete documents, policy exclusions, and violation of policy terms such as drunk driving or unauthorized vehicle use.
Yes. Insurance companies in India may reject claims if there is an unreasonable delay in informing them about the incident, as timely intimation is mandatory under policy conditions.
Non-disclosure means hiding or not declaring important information like previous claims, vehicle modifications, or medical history while buying the policy. This is a major reason for claim rejection in India.
Yes. If the driver does not hold a valid or appropriate driving licence at the time of the accident, the motor insurance claim can be rejected.
Yes. Claims are payable only during the active policy period. If the policy has expired before the date of loss, the claim will be rejected.
To avoid claim rejection, you should submit accurate and complete documents such as the policy copy, claim form, RC, driving licence, FIR (if applicable), repair bills, photographs, and any other documents requested by the insurer.
Yes. Claims related to exclusions such as wear and tear, consequential damage, drunk driving, illegal vehicle use, or unapproved modifications are commonly rejected.
If your claim is rejected, request a written explanation from the insurer, review your policy terms, submit additional documents if required, and escalate the issue to the insurer’s grievance cell or IRDAI if necessary.
Yes. In some cases, a rejected claim can be reopened if you provide valid explanations, missing documents, or new evidence within the insurer’s allowed time frame.
To avoid claim rejection, always disclose correct information, renew your policy on time, inform the insurer immediately after an incident, follow policy terms carefully, and maintain proper documentation.
📞 Need Help With
Insurance Claim or Rejection?
If your car insurance claim is:
- Rejected
- Delayed
- Partially approved
- Confusing
👉 Contact Anuja Solutions before visiting any workshop
📱 Call / WhatsApp: 9458316059
🌍 Serving customers across Assam & India