Car accidents is not a topic anyone’s fond of discussing, but statistics are not getting any positive. Maltese roads witness almost 15,000 car accidents annually. Together with keeping an eye of caution and driving carefully, knowing full well how your car insurance policy terms cover a claim will save you time, effort and worry. Less than 1% of claims are rejected yearly, but it’s good to watch out for some of the reasons why a claim can be denied.
NON-DISCLOSURE
Determining the cost of a motor insurance policy is based on various individualistic factors. This practice is undertaken to unearth meticulous information about the driver and past events. This allows the insurer to assess the risk of insurance, what premium to charge and any terms and conditions to include.
It is the owner’s responsibility to communicate any previous accidents, losses or other important information that might change the insurer’s decision on whether and how to offer insurance, even if a claim was not made at the time. Failure to do so will be interpreted as an omission or non-disclosure, irrespective of whether it was deliberate or unintentional. Discovery of information which was not disclosed at the time of policy inception will cause the claim to be rejected.
DRIVING UNDER THE INFLUENCE OF SUBSTANCES
Getting behind the wheel when inebriated is a recipe for disaster. On average, 15 people die every year in Malta following drunk driving collisions. The law currently states that a driver should not have more than 80mg of alcohol in every 100ml of blood. Plans to reduce the legal limit to 50mg are underway. Being intoxicated at the time of an accident will automatically cause an insurance claim to be turned down. At times, the driver is also charged with a fine or a prison sentence.
FRAUDULENT CLAIMS
Exaggerating damages or corroborating dishonest allegations with the intention of deceiving your insurer is classified as a criminal offence and can lead to legal consequences. If a claim is believed to be fraudulent, it will be denied.
NEGLECTED LOCAL DRIVING OBLIGATIONS
The vehicle owner carries full responsibility for making sure that any individual who uses a car with driving intentions has a valid driving licence, is not under driving age limit and is covered by an insurance policy.
The minimum driving age in Malta is set at 18 years of age and each driver should be in possession of a driving licence. Breaching the law might have serious future implications on someone’s official records. Insurers allow owners to extend their motor insurance policy to cover additional drivers – make sure your insurance provider is informed.
VEHICLES RENTED UNDER PRIVATE POLICY
Vehicle owners who deliberately or unintentionally allow their cars to be used for rental or commercial purposes should inform their insurer at once. Failure to do so will not offer optimal coverage of any costs in the eventuality of an accident.
When determining a car insurance policy, clarify any questions you have with your insurer to avoid suffering from unexpected damages. Let all the truth be known, irrespective of how ugly it may look. The facts will still get uncovered, so let your insurance agent help you in times of need.