Insurance is a tough industry. Every year billions of ringgit have been paid out for insurance claims. According to Persatuan Insurans Am Malaysia (PIAM) in first half of 2017 insurance companies paid total of
RM 2.6 billion for motor insurance claims.
No wonder insurance companies would be so delicate to filter everything out to minimize fraudulent claims.
Here are some reasons why a claim might get rejected
It is really important to disclose everything that happened during accident to avoid a misunderstanding that can be suspicious to the eye of the insurer.
An accident happened at a junction of Jalan A and Jalan B. Driver A reported that the accident happened at Jalan A and Driver B reported that the accident happened at Jalan B. Even though the story is correct but the irregularity regarding the name of the street might lead to the claim rejection.
All the parties involved should get the stories straight to avoid misunderstanding that can lead to claim rejection.
Validity of police report
The rule is you have 24 hours to make a police report after the accident happened. If failed to make a police report within the time frame, you report will not be accepted because it may lead to a fraudulent claim.
Acts of Negligence
If you allow a person without driving license to drive your car and resulted in an accident. High chance
your claim will be rejected. The act can be considered an act of negligence.
If you are using your vehicle to do illegal activities such as drug smuggling of robbing a bank, you claim will be surely be rejected by the insurance companies.
It is important for you to understand why your claim got rejected. The insurance companies always follow the clause in the policy. If you happened to be in that categories then there is nothing you can do except appealing to the insurance company.