Guiding consumers since 2009

Could you have prevented your car insurance claim being rejected?

By Danielle van Wyk

It’s a rainy winter’s morning and you’re on the road against your better judgement when there is a loud crash. You’ve been in an accident. The next few moments are filled with questions as you try to collect yourself and get the necessary details from the other driver for insurance purposes.

But what if – after all that - your car insurance claim is rejected?

According to the 2017 report from the Ombudsman for Short-Term Insurance (OSTI), Deanne Wood, this is not uncommon. A recent press release from her office stated that it receives far too many complaints where policyholders withheld certain information or provided incorrect details on purpose. All to try and pay a lower premium.

This is bound to backfire since all claims are thoroughly investigated.

According to Natasha Kawulesar, head of client relations for Outsurance, the following are the biggest reasons why a claim will be rejected:

1. Damages that are being claimed for is not covered by your insurance option e.g. the mechanical breakdown of a car.

2. The damages are due to wear and tear, which is a general industry exclusion.

3. The cover is insufficient. For example, under limited vehicle cover there is no cover for accidental damage to the car.

4. People are often unaware that if you miss a certain number of payments, typically two, any insurance claim that you tender during this time could be denied on these grounds.

5. You drove under the influence of alcohol.

Wood also added that consumers should take note that another leading cause for a rejected claim is alleged misrepresentation of underwriting details.

In a recent press release issued by Indwe Risk Services the following are mentioned as misrepresentations:

If your claims history, previous insurance history and credit history are in bad standing.

-  If the person who caused the accident is not the regular driver of a vehicle.

- If there was a misrepresentation about what the purpose of a vehicle is (personal vs business).

- If you lie about having a tracking device in your vehicle or any other related security system.

Can I dispute a claim rejection?

You have an option to dispute your claim rejection. Most insurers have an internal dispute resolution process. After the matter is reviewed, the client will be provided with the outcome of the process.

Alternatively, if you’re not satisfied with the outcome you are encouraged to approach OSTI on 011 726-8900 or email info@osti.co.za.

Tip: To apply for car insurance today, click here.

Recent Articles

Featured What to do when you’ve been denied a home loan

After months of scanning property sites and attending showhouse after showhouse, you’ve finally found what you’ve been looking for. But your dream of owning a home comes crumbling down when you receive the news that you’ve been denied a home loan. So, what now?

Can your retirement annuity be used as collateral for a loan?

If you have a retirement annuity, you may have wondered whether you can use this as collateral when you take out a loan. We decided to do the leg work and find out whether this is possible or not.

Best travel cards offered by top South African banks

Planning a trip abroad involves a lot of administration. You need to consider travelling arrangements, reasonable accommodation, and a daily itinerary. But have you considered how you’re going to pay your bills once you arrive? Besides considering bank costs, you also need to consider exchange rates.

Best ways to save your money short-term

For many, it seems close to impossible to save when spending on holiday getaways, Christmas gifts, while also trying to ensure there’s money left to survive January. Justmoney takes a look at the best ways you can save during the short term.

Deals

Marble Gift Card Special

Price: From R1000
When: Until 25 December 2019
Where: Johannesburg

Trennerys Hotel and Camping Januworry Special

Price: R950
When: From 10 to 31 January 2020
Where: Centane (Eastern Cape)

Bakwena Standard Packages Special

Price: From R999
When: Until 31 December 2019
Where: Nationwide