When can a car insurance claim be denied and how to appeal?

A refusal to pay a claim under CTPCI may be an unexpected and unpleasant event for drivers, but it is not always a final decision. Find out what reasons insurers can give for refusing to pay out and whether you can appeal against this decision

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Taking out motor third-party liability insurance (MTPL) gives car owners confidence that their interests will be protected in the event of a traffic accident. However, situations where insurance companies refuse to pay out are not uncommon. Let's figure out what an insurance claim denial is, in what cases it is possible, and what to do if you are denied.

What is an insurance claim denial?

An insurance claim denial is an official decision by an insurance company that it will not compensate for the damage specified in your insurance case. Such a decision may be related to a breach of the terms of the contract, lack of necessary evidence, or other reasons provided for by law or insurance rules.

Read also: How much will car insurance cost in 2025?

The main reasons for refusal to pay under motor insurance

● Absence or expiration of the motor insurance policy at the time of the accident.

● Use of the vehicle for purposes not specified in the contract (for example, commercial transportation when the policy is issued for personal use).

● Driving a vehicle while under the influence of alcohol or drugs.

● Gross violations during the recording of information about the accident or false information. Distortion of information about the accident.

● Failure to comply with the deadline for submitting documents and applications to the insurance company.

● Errors made by the owner of the MTPL policy when completing it.

● The victim of the accident was found to be under the influence of alcohol or drugs during the examination.

● The owner of the MTPL policy, as the possible perpetrator, left the scene of the accident for various reasons (alcohol intoxication, nervous disorders).

The claim may also be denied due to suspicion of fraud. For example, if the insurance company believes that the accident was staged, or if there are signs of forgery in the documents provided, it may refuse to pay until the investigation is complete.

To avoid unpleasant surprises in the event of an accident, it is important to have a properly executed policy. At Visit Ukraine, you can choose car insurance from trusted insurance companies. All policies comply with the requirements of the law, which guarantees their validity and protection of your interests.

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What to do if your claim is denied?

According to the law, the insurance company is obliged to provide you with an official refusal stating the reasons. This is an important document that you will need to appeal. If you disagree with the insurer's decision, you need to take several steps.

First of all, you should check the legality of the refusal: compare the reasons stated in the refusal with the terms of your insurance contract; make sure that you have not violated the deadlines for submitting documents or other obligations.

If you were denied due to a lack of information or documents, supplement your case: provide photos from the accident site, dashcam recordings, and witness statements.

Submit a second application, stating why you consider the refusal to be unlawful. Include all additional evidence and copies of documents.

If the dispute cannot be resolved, file a complaint with the MTIBU (in Ukraine) or a similar organization in your country. They regulate the activities of insurance companies and can act as mediators in disputes.

You also have the right to go to court, but before doing so, consult with a lawyer and make sure you have sufficient evidence.

Read also: Compensation under motor insurance — how much did victims receive in the first half of 2025?

A few tips for insurance recipients

1. Read the terms of the contract before signing. Pay attention to the exceptions and obligations of the parties.

2. Follow the rules for submitting documents. After an accident, immediately notify the insurance company and provide all the necessary information.

3. Keep track of the policy's validity period. Do not allow any gaps in insurance coverage.

4. Record all the circumstances of the accident. Take photos and videos of the scene and request information from the police.

5. Use the services of reputable insurance companies. Companies with a reliable reputation are less likely to refuse payments without a valid reason.

Get your auto insurance online at Visit Ukraine — quickly, officially, and without unnecessary paperwork. Choose an insurance policy that suits your needs and get a guarantee of financial protection in any situation on the road.

We remind you! MTPL is a mandatory insurance policy for all vehicles in Ukraine, including electric cars. We previously wrote about how to purchase car insurance for an electric car online in just a few minutes and how much it costs.

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