Top Five Reasons Why Insurance Claims Get Rejected

Life Insurance: Crucial Investment

Getting a life insurance policy for yourself and your loved ones is a paramount investment, providing security against unforeseen incidents and associated expenses.

What If?

While insurance claims are typically settled seamlessly, occasional rejections can occur.

Avoid False Information/Non-Disclosure

A frequent cause of life insurance claim rejections is the provision of false information or the omission of crucial details. Precision is key; providing incorrect data about your age, profession, income, etc., can impact your policys premium and coverage. Verify the details submitted by the insurance company to preempt any issues in the future.

Premium Payment Punctuality

Failing to pay life insurance premiums is a common reason for claim rejection. Non-payment results in the forfeiture of policy coverage, and insurers promptly reject claims based on this. Timely reminders via messages, alerts, and emails are issued by insurance companies, underscoring the importance of adhering to payment schedules for uninterrupted coverage during crises.

Nominee Details As Per Govt

Government guidelines mandate adding/updating nominee details in your insurance policy. This step is crucial, clarifying who receives policy benefits if the policyholder is no longer present. Neglecting nominee details may lead to a complex process for claimants to establish their relationship with the policyholder, potentially resulting in claim rejection. Therefore, maintaining accurate nominee information is imperative.

Essential Medical Tests

Insurance companies often conduct medical tests, particularly in high-risk coverage scenarios, to verify applicant-provided medical information. Undergoing these tests is essential, helping identify pre-existing illnesses and ensuring coverage for them in the future. Denying these tests increases the risk of claim rejection, as insurers may assert non-disclosure of pre-existing conditions.

Timely Claim Filing

While IRDA discourages claim rejection solely on the grounds of delay, filing insurance claims promptly is advisable. Insurers conduct thorough investigations into causes, accidents, or deaths. Delays in filing may lead to corresponding delays in payment. To prevent complications, it is essential to file claims in a timely manner.