Categories
Insurance

Reasons Why Your Two Wheeler Insurance Claim Is Rejected

Two wheeler insurance offers excellent financial cover to protect your vehicle from unexpected events such as road accidents/collision, damages, third party liability, etc. but a denial from your insurer to settle the claim can be the big jolt. Therefore, it is imperative to be careful while buying a plan and you must also re-examine the details of the policy held by you.

Here are five common reasons why your claim can be rejected.

  1. Getting your vehicle repaired on your own after the accident: It is the most common mistake that many of you make. You tend to repair your bike on your own and then inform the insurance company about the settlement. As a result of this, the insurer cannot trace back the accident and the repairs and eventually reject your claim. To avoid such situation, always inform the insurance company before getting the car repaired. The company professional will inspect the damage from their end, evaluate the cost of damage and help you get the best deal for repairing the damage caused to your bike.
  2. Drunk driving: If a person is found drunk at the time of an accident, then an insurance company has all the right to reject the claim. Many times, people try to hide that they were drunk while riding a bike. This may work in some cases where the accident is minor and the driver does not get to see any police or hospital. But in the other case, hospitals exhibit this information to police and then you cannot expect insurance coverage. Rather a tough criminal action can be instigated against you if you hide such a thing.
  3. When you miss transferring your name in the policy copy: People keen on buying used bikes invest can face a claim rejection in future if they forget to transfer their name in the policy copy. In such cases where transfer formalities have not been done, the policy is considered invalid and will not help you to settle the claim.
  4. Forget to notify the claim within specified time: Always notify the claim within 48 hours to 72 hours of the damage. If you fail to do so, insurance companies can reject your claim. Also, if you damage your car in a crash and the engine gets damaged too, but you continue driving it, thus causing further damage to the car. The policy claim will automatically be rejected by the insurer.
  5. Driving License: Driving licenses are valid for a longer duration. After this period, you need to renew it. It is important because if your vehicle meets an accident during the time and your driving license is not valid, then two wheeler insurance will be rendered useless and it can be the prime reason behind the rejection of your claim too.

Though buying two wheeler insurance is an extremely smart step as it can save you from much unaccounted for and sudden costs, but they don’t make you or your bike bulletproof. Be honest and safe, instead of being careless and reckless. Insurance companies will love you for it and help you the most.

Categories
Mortgage

Were You Rejected For Refinancing? Learn How Mortgage Modification Can Help

Homeowners who are facing the precarious situation of a likely foreclosure are often in a stat of panic and are willing to take any measure to save their homes. Inevitably, most of these people turn to refinancing, unfortunately if foreclosure is imminent it is obvious that mortgage payments have been missed or the homeowner is at least 90 days late. In both these situations a person would be ineligible for refinancing because these will reflect badly in your credit score and you need an almost flawless credit rating to procure refinancing.

It can be a heart wrenching experience to find that you have been denied of refinancing and that you may not be able to save your home. However what most homeowners fail to realize is that there is another solution besides refinancing: home loan modification.

Mortgage modification is essentially the renegotiation of the existing terms of your loan. Home loan modification is designed to help homeowners by making the monthly mortgage payments more affordable. Since the lending institution is already aware of your financial condition when granting you a mortgage modification, your credit score does not play a role in the process of procuring a home loan modification.

The lender and the borrower may renegotiate several terms under mortgage modification these may include:
o Reducing the interest rate and keeping it fixed for a period of one to three years or more.
o Writing off some of the principle amount or certain penalties that have been levied
o Extending the tenure of the loan.
o Or a combination of all of the above.

For homeowners who are faced with dire financial adversities home loan modification is a good option to save their homes. Not only will be able to retain your house through mortgage modification but you will also be able to profit from an eventual boom in the real estate market.

You can apply for a home loan modification on your own or you could avail the services of an attorney or a company that can negotiate the mortgage modification with the lender on your behalf.

Categories
Insurance

7 Scenarios Wherein a Car Insurance Claim Might Get Rejected

Car insurance is a mandatory investment as the law. Therefore, a large number of car owners opt to pay a premium for a car insurance policy to safeguard their cars against a possible collision. However despite this, a majority of their claims are rejected by companies. This is because people are unaware or rather ignorant to the intricacies related to car insurance. Therefore, a major chunk of car insurance claims are rejected. To stop this from happening, let’s go through a list of reasons where a car insurance claim might get rejected:

1. Intimating your insurer late or not at all: Please be informed that your claim is destined to be rejected if you fail to inform your insurance provider in the stipulated timeframe. On an average, you should update your insurance company within 48 to 72 hours from the time of accident or collision.

2. Driving under the influence of alcohol or any other drug: This one is a no-brainer but still most people are negligent about it. If you are driving when you have consumed alcohol not only are you breaking the law, but even your insurance company will refuse to cover in case of an accident.

3. If your car is being used for commercial purposes: If you have a private car and it is being used for any commercial use such as being used to carry goods or passengers than your car insurance provider can reject your claim. This is because there are different policies for Private car and commercial vehicle policies.

4. If you drive without a valid license: In case you or anyone driving your car is driving valid license and face an accident then your coverage becomes null and void. Therefore, ensure you renew your license on time.

5. Starting the repairs before inspection by insurer: When you intimate your insurer about the collision or accident, a surveyor will visit you to inspect the condition of the car and authenticate your claim. Without this inspection, the insurance company will be unable to trace the degree of the repairs and estimate the cost involved. Therefore, your claim is bound to be rejected.

6. Failing to transfer the policy from the previous owner: There is going to be some verification during the claim process. In case, the car insurance policy is not in your name then your insurer has the right to refuse your claim.

7. An Electrical or Mechanical Breakdown: In case your car is damaged without any external collision due to some electrical or mechanical breakdown then you are not covered by your car insurance policy. In this case, you will have to shell out some money from your own pocket.

Next time be more careful of all these reasons and ensure you make maximum utilization of your car insurance policy.