Can Insurers Reject Vehicle Claims for Late Reporting? Insights from a Recent Ombudsman Ruling

This article examines whether insurance companies can legitimately reject vehicle insurance claims due to delayed reporting, highlighting a recent case involving Debananda Prusty. Prusty’s claim was initially denied after he reported an accident 68 days late, citing his son’s exam schedule as the reason for the delay. The Insurance Ombudsman ruled in his favor, stating that the delay was reasonably explained and the damage was verifiable. Industry experts note that while policies often require immediate notification, typically interpreted as 24 to 72 hours, rejection usually depends on whether the delay hindered fraud detection or evidence verification rather than the time lapse alone. Insurers prioritize timely reporting to preserve evidence and prevent fraud, particularly in theft cases. However, genuine claims with valid explanations and intact evidence are often approved even if reported late. The piece advises policyholders to report accidents within 24 hours when possible and maintain documented reasons for any delays beyond 72 hours to avoid claim rejections.