You’ve done the research, spoken to your broker or insurer, and finally bought the right insurance cover to protect your car and home. Insurance cover, like any other contract, has certain requirements that need to be upheld for it to stay valid. Not holding up your side of the deal could see your policy voided or a claim being rejected.
Shakeel Ebrahim, Head of Operations at Standard Bank Insurance, has compiled a list of reasons why insurance claims are rejected, here are the Top 8:
1. Unlicenced driver
It’s illegal for someone without a valid driver’s licence to be behind the wheel. Make sure that the person driving your car has a valid driver’s licence. If they only have a learner’s licence, they must be accompanied by a licenced driver.
Please also be mindful of any moratoria and timelines communicated by the department of transport relating to the ongoing delays in the issuing of drivers’ licences. If you find you are one of those affected, please take steps to understand how this may impact you and make sure you are on the right side of the law.
2. The driver may not be the regular driver
Some insurance policies require that the regular driver be specified. If someone else is going to be driving your car and your policy requires that the person is specified, make sure that they are. Adding additional specified drivers to your policy may affect your premium.
3. Driving under the influence
In South Africa, the legal limit is a breath alcohol content of 0.24mg per 1,000ml or a blood alcohol limit of 0.05g per 100ml (as at the time published). This means that just two beers could put you over the legal limit. A claim under these conditions will not only be rejected, but you could cause an accident, face a fine, or jail time if you are caught. It’s better to plan ahead if you are going out, i.e. by using a ride hailing service or having a designated driver.
4. Satellite tracker data
Some insurers may require you to fit a tracking device so they can track your car in the event of theft. If this was not done and your car is stolen, your claim will be rejected. If you’re driving recklessly and cause an accident, your claim will also be rejected.
5. Insufficient cover
There are different types of car insurance available, namely comprehensive cover; third party fire and theft cover; and third party cover. Some insurance policies only cover you under certain circumstances, so it’s important to understand the plan you choose.
6. Mechanical failure
Regular servicing helps keep your car running smoothly. Skipping services won’t just void the manufacturer’s warranty but can also result in serious mechanical issues, like causing your engine to seize. Be sure to follow the manufacturer’s recommendations for the care of your car to avoid a rejected claim in the future.
7. Inspection not carried out
Typically, an insurer would require that your car gets inspected as early as possible after your policy starts, this to ensure that the insured asset exists and is in the specified condition. Failing to do this in the required window period could result in a future claim being rejected.
8. Using your car for business
If you use your car for business purposes, you need to disclose this information to your insurer, and you may be required to insure your vehicle under a commercial policy. Please check with your broker or insurer.
Remember:
- Make sure that you read and understand the Terms and Conditions in your policy document.
- Be honest when answering questions asked by the insurer when taking up your policy.
- Always remember to adhere to the road rules and drive responsibly. It is also important to keep your car roadworthy.
- Make sure your car is well maintained and that you stick to the service intervals.
If your assets are protected by Standard Bank Insurance and you need to see what you are insured for click here and login.
If you would like to find out more about affordable insurance products Standard Bank offers click here.