INCOME TAX10 Sept 2026
Motor insurance pitfalls: Why claims get rejected — 6 key points policyholders should keep in mind | Mint
Motor insurance claims often get rejected for small errors, not big accidents. This affects every vehicle owner who buys or renews a policy. An expired driving licence, wrong details about previous claims, undisclosed scratches, or missing add-ons like zero-depreciation and consumables cover can cost you the repair bill. So check your policy details carefully before you buy or renew.
Key Statutory Highlights
- Giving wrong or incomplete details about previous claims, no-claim bonus, ownership, usage or modifications can become a major issue when a claim is filed.
- A standard motor policy usually deducts depreciation on plastic, rubber, nylon and certain metal parts, while a zero-depreciation add-on reduces or removes that deduction for eligible accident damage.
- Consumables such as engine oil, coolant, brake oil, grease, nuts and bolts are excluded unless a consumables add-on is bought, and damage to a tyre alone needs tyre protection to be covered.
Actionable Advice for Taxpayers / Founders:Before buying or renewing your motor policy, share complete and correct details about past claims, no-claim bonus, ownership, usage and modifications, and ask your insurer whether add-ons such as zero-depreciation, consumables and tyre protection fit your needs.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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