Claims are most often disputed because the facts do not fit the cover purchased or a material condition was not met. The best time to find that mismatch is before a loss.
A rejection always turns on the schedule, wording and evidence. These are common patterns, not automatic outcomes.
Ten recurring problems
Review these points at renewal and whenever operations change.
- The activity or premises was never declared
- Vehicle values exceeded the total or any-one limit
- The driver was unauthorised, unlicensed or outside age rules
- A test drive was unaccompanied without the extension
- Alarm, tracking, key-control or security warranties were breached
- The loss was wear, breakdown or the defective work itself
- Poor work caused damage but no workmanship extension applied
- The trip fell outside the agreed purpose, radius or territory
- Pre-existing damage could not be separated from new damage
- Material information or prior claims were misstated
Why underinsurance reduces settlements
If a sum insured is materially lower than the value at risk, average may reduce a property or interruption settlement. Motor-trade vehicle sections may instead cap payment at the declared accumulation or any-one limit.
Build a defensible claim file
Preserve CCTV, job cards, photographs, licence copies, tracking data, invoices and witness details. Notify promptly and do not admit liability or authorise major repairs before the insurer agrees.
A dealer handed a vehicle to an unverified buyer for an unaccompanied drive. The vehicle never returned. The policy covered accompanied demonstrations only and excluded voluntary parting. The theft claim was rejected.
Questions an insurer will ask
- Have activities, addresses and vehicle values changed?
- Are policy warranties converted into written staff procedures?
- Can you prove who held each key and drove each vehicle?
- Are claims notified before repairs begin?
- Has each exclusion been explained in operational language?
General information only. RMI requirements, fees and processes can change; confirm current requirements directly with RMI. Insurance cover depends on the insurer’s schedule, wording, limits, excesses and conditions.