Nothing Complicated! "APPLY FOR CAR INSURANCE": METHODS, CONDITIONS AND INFORMATION ON THE REASONS FOR REJECTION OF A CLAIM (part 1)
Car insurance is part of the insurance process. When you insure your car or vehicle, you can take out car insurance if something happens to your car or vehicle. But usually the question is how long does it take to apply for car insurance? The time it takes to apply for car insurance varies. Besides the fact that each insurance company has different regulations, it also depends on the procedures and documentation. As an insurance agent, it is important to know about car insurance. Of course, it is also important to know the procedures, required documents and tips so that insurance claims are not rejected.
Definition of car insurance claims and their types
Steps and Procedures for Applying for Car Insurance
Of course, each insurance company has a different claims process or procedure. However, in general, there are several ways to "trust" car insurance, namely how to apply for all perils car insurance and how to apply for total loss only (TLO). For a better understanding of the requirement procedure definition. So how does the auto insurance claims process work?
Let's take a driver's license and a more detailed explanation below.
- How to apply for all risk car insurance
The first step in the application process is risk. Literally, each risk in itself means all risks. This method of applying for car insurance requires the insurance company to cover each loss. From minor damage, severe damage to the loss of the car itself. The customer pays regular payments determined by the insurance company every month. In this way, customers get full protection for their favorite car.
All risk insurance is perfect for cars or vehicles that are very valuable. Since not insuring only minor damage such as scratches or dents are involved, the insurer will make repairs as compensation. This policy, including its own no-fault car insurance, covers all risks that arise as agreed in the contract letter after premiums have been decided by the insurance company.
You should know that the benefits of comprehensive risk insurance are as follows:
• Full coverage from minor damage to major damage.
• Can cover the loss of the insured car.
• Can protect the car or vehicle in case of an accident.
• Services available to increase the number of dependents
- Applying for Total Risk Only (TLO) car insurance
Another way to apply for insurance is total risk insurance or TLO. Translated into Asian languages, it means total loss. This car insurance can therefore only be done in case of loss of the insured car. But this does not mean that the car is lost because it was stolen or did not exist due to theft. In vehicle insurance, total risk means slightly more than 75% of the vehicle or damage caused by theft or theft.
If the damage caused is less than 75%, a claim for TLO insurance compensation cannot be submitted, but other types of insurance compensation can be made. Or simply when the vehicle is completely unusable. How could a vehicle with up to 75% damage still be usable?
At least that is the logic used. TLO auto insurance benefits typically include low monthly premiums and services to help extend your coverage. Apart from these advantages, TLO insurance itself also has disadvantages, namely:
In case of light or minor vehicle damage, a compensation claim cannot be submitted.
No compensation can be claimed in case of minor accidents.
It is not possible to receive 100% financial compensation for the loss of the vehicle.
Claims resulting from theft cannot be submitted.
Documents and information required as a prerequisite for vehicle compensation insurance claims
As explained above, applying for car insurance from BCA Finance is different from applying for car insurance from Sinarmas or Allianz. This is because each insurance company has different requirements.
This includes administrative requirements related to documents or information that must be prepared as a basic requirement for an insurance claim. Apart from the requirements, the price of car insurance compensation is also different. What data and documents are needed to submit an insurance claim? We take the driver's license and describe it below.
- General car insurance requirements
- Copy of the photocopies and originals of the insurance contract documents that prove the authenticity of the insurance contract itself.
- An official quote from the contract certificate about the event that caused damage to the car.
Copy of SIM card and Vehicle Number Copies.
- Completed and signed insurance claim form.
- Special car insurance benefits in case of vehicle loss or total loss
In addition, car insurance has an extensive claim procedure that should be completed in advance, namely documents such as claims. The following is a list of requirements that must be met, namely:
- Original forms and copies of insurance contracts.
- Copy of SIM card and Vehicle Number Copies.
- Official contract confirmation that the car was damaged in an accident.
- Official offer of contract certificate in case of car loss.
- Fully completed and signed insurance company indemnity form.
- A written chronology of events describing the condition of the car.
- Special requirements for liability auto insurance
Regarding the various documents that must be prepared for damage to a third vehicle, namely:
• Whether the third demand letter is completed and signed with the agreed stamp.
• Include copies of ID Card, SIM card and third party vehicle certificates.
• It has been reported that third parties do not have car insurance.
• Formal offer of contract documents stating that an accident occurred and a third party was involved.
Generally, each insurance company has different requirements regarding the costs of filing the insurance claim itself. As a representative, you have an important role in providing information about appeal costs.
Common Reasons for Auto Insurance Denial
The first common reason why insurance compensation can be denied is an expired contract. The condition is that the insurance contract is invalid and ineligible for compensation. This condition occurs if the customer does not pay the insurance every month and has exceeded the specified time.
- Damage previously done
The conditions that lead to the rejection of insurance compensation are the damages that are the subject of the compensation claim, which occur when the customer does not register his own insurance. Therefore, it is certain that the policy will be rejected and not accepted. Including traffic accident insurance indicates that the traffic accident occurred before the registration of the insurance.
- Violation of rules or laws
Another reason for auto insurance application rejection is a traffic violation. Like a drunk driver or an unlicensed driver.
- The contract cannot be cancelled
The reason for rejecting the contract document is the fact that the purchase document was not delayed. The waiting period is one month from the conclusion of the contract. The accident that damaged the car happened within a month of submitting the contract, so the claim cannot be submitted and will be rejected.
Intentional damage or manipulation
In addition, intentional damage or destruction is the reason for refusal of car insurance compensation. For example, intentionally crashing a car or damaging it with physical activity, such as running into a vehicle. In addition, no claims can be made against the vehicle's engine, especially if the vehicle has been damaged due to flooding. That is why it is important to avoid flooding in the insured car. Because no compensation is required in case of damage.
- The availability of accessories is not announced
Regarding motor insurance, it is also important that the customer informs the car about possible additional equipment. Inform the installed accessories so that the insurance company can calculate the insurance amount.
- Incomplete claim documents
Another reason is that the document file is not complete at the time of sending. Because if not, these requirements do not apply. Complete files still pass the inspection of the insurance company and guarantee compensation for the cars.
- The deadline for submitting a claim has passed
The rejection of the claim is affected by the fact that the deadline for presenting the claim for compensation has passed. If such a situation arises, the customer cannot do anything. Therefore, calculate the time required to prepare the necessary files for the advertisement.
- Events that happen to cars are not included in the risks covered by the insurance