Not a fan of reading the terms and conditions of your insurance policy? Don’t blame you, nobody does. They are one of those things we neglect until after we’ve found ourselves in hot soup. So here we’ll make it easier on you, our readers, and list down several common reasons why your car insurance claim may be rejected.


 5 Common Reasons Why Your Car Insurance Claim Might Get Rejected

1. Unnamed driver

Did a member of the family, a relative, a colleague or a friend drive your car when the accident happen? Guess what. Your insurance policy only covers you, the car owner. Now this does not mean that no one else can drive your car, it only means that for you to extend the same coverage to them, you will need to register them as the “named drivers” in your car insurance policy. But all is not lost. If there has been an accident involved an unnamed driver, you simply have to pay an ‘excess’ of RM400.

In Malaysia, you are allowed to include two drivers in your motor policy for free. Any additional driver will cost additional RM 10.


2. No police report

If you are unclear of the procedures that follow a car accident, you need to read this accident guide.

One of the most crucial things you need to do after an accident is filing a police report within 24 hours of the incident. This is something you do not want to take lightly! If you don’t file a report or file a report during the specified period, your insurance company has the right to reject the report as well as your claims.

So tarry not! Off you go to the police station as soon as an accident occurs. You really don’t want to have to fork out thousands of ringgit in repair cost just because you decided to postpone this task to the next day. Also, don’t just go to any police station, make sure you find the closest balai polis trafik!


3. Cause your policy doesn’t cover that

Many people assume a car insurance policy naturally covers every single aspect of the car as far as damages and lost go. Well not true. For instance, if you have a Third Party cover, your policy won’t even cover the cost of repair for YOUR OWN CAR! That’s right. Any accident involving your car, even if you’re not at fault, will not be covered by your insurance company. But no fret, if you’re not at fault and if the other party has a valid insurance cover, you can just claim against their policy.

Some other good examples that you need to know that is not covered by your policy, even if it’s a Comprehensive cover, are as below:

7 Dreadful Instances Your Motor Insurance Does Not Cover


4. Failure to disclose vital information

When renewing your car insurance, especially if you are doing it on your own, such as through the insurance company’s online portal, make absolutely certain you got all the information correct. With detariffication, more information is now needed for insurance companies to determine the price of your policy. For instance, some insurers require information about the type of your parking garage. A secured, private garage has a lower risk of theft compared to one that is unsecured and open. So if you got some of this information wrong, you may have just given a reason for your insurer to reject your claim.


5. Drunk driving or driving under the influence

Well you really shouldn’t be drinking and driving or driving under the influence of any dangerous drugs. If you are involved in an accident while being drunk, not only your claims will be rejected, you will be charged with a fine and may even face jail time.

So take heed, never drive while under the influence. You may think you’re a great and careful driver even when slightly drunk. But if you’re involved in an accident even if it was some nitwit who just got his license two days ago who hit you from behind, guess what? That’s right. No claims for you.


Other reasons you need to know about

  • Using private car for commercial purpose – if you met with an accident, your insurer has the right to reject your claims.
  • Under-insurance – this may not result in an out right rejection, however you will be subjected a much lower claimable amount.


So your claim got rejected. Now what?

If you think that your claim was unfairly rejected, find out if there is a chance to appeal. If not, or if you have appealed and still do not get a desired outcome, your option is to send your dispute to PIAM (Persatuan Insurans Am Malaysia), Bank Negara Malaysia or Ombudsman Financial Services. To read about how you can go about with the appeal read this article.


If you have any bad experiences with regards to an insurance claim, or have questions about it. Forward your queries here.