Top 15 Reason Your Insurance Claim May Get Rejected:-

Insurance is one such thing that acts as a protective cover in the time of need & getting money in the time of need is just like a blessing from god. But sometimes this insurance claim gets rejected and you are left completely heartbroken.

There can be many reasons that might result into insurance claim rejection and it is always advised that you should read all the terms and conditions before purchasing the insurance policy.

Here are 15 top reasons that might result into your insurance claim getting rejected by your insurance company.

1. Non-Disclosure of Important facts

• When at the time of purchasing the life insurance policy you need to tell company about your health condition. If in case later at any stage it is proved that you didn’t disclose about the exact health condition at the time of buying of policy the insurance claim might gets rejected.

• Hence it is always advised that you undergo a medical checkup so that your get a medical certificate from the medical authority about the exact condition of your health.

2. Not paying the life insurance premium on time

Always make sure that you renew your life insurance on time. Most of the life insurance companies rejects claim because the policy gets lapsed. In case you do not remember the date set a reminder so that the insurance policy gets renewed on time. You can also go for ECS option where a set amount is automatically deducted from your bank account for the insurance policy premium.

3. Not disclosing about the negative credit record

There are times when you do not disclose about your negative credit record at the start and if in case the insurance company finds this later then there are chances that the insurance claim might be rejected.

4. Do not trust your insurance agent blindly

There are many people who buy a life insurance policy in a hurry and they do not read all the terms and conditions properly. They just trust the insurance agent blindly and then regret later. There are some hidden points that are mentioned in the policy document and you must read all those terms, conditions and hidden points so that you don’t feel cheated during the time of the insurance claim.

5. Not disclosing about the nature of your job

Certain people work in a job that comes under high risk category and it is always advised that you mention the same during the initial stage of policy buying. Failing to do so may result into the rejection of the life insurance claim.

6. Not submitting the correct and valid documents

In case the supporting documents that you are giving with the policy are not valid or are found to be fake then also the life insurance claim may get rejected. Documents like date of birth certificate, PAN card number and other relevant documents needs to be true.

7. Not filling up the insurance form yourself

This happens many times as people who are buying insurance do not fill up the insurance form them and let the insurance agent do the job. Sometimes the insurance agent or the other person might fill the wrong information that might lead to the rejection in the insurance claim.

8. Not updating about the nomination

Whenever you fill a life insurance form make sure that you fill complete information about the nominee. In case god forbids you die and the nominee’s data is not filled in the insurance form then also there are chances that the insurance claim might get rejected.

9. Not verifying the policy document

There are times when people do not verify the policy document properly and repent later.

10. In case there is a fraud

There are times when there is some kind of fraud which involved in the death of the person.

11. Death Due to reckless driving

If during investigation it is proved that you have been driving in a reckless fashion then also the insurance claim stands rejected. Therefore it is always good to drive your vehicle within permissible speed limits and keep your life safe.

12. If it is a case of death due Drunken Driving

Never ever drive when you are drunk. It is always good to use some other mode of transport to reach home or you can call a friend or family member who can pick you up from the spot. Insurance companies are very strict about drunken driving cases and they straightforward deny life insurance claim to such drivers.

13. The life insurance policy does cover the cause of death

In case the policy holder dies because of some other reason that is not mentioned in the policy document.

14. In case it is a suicide case

Insurance companies reject claims that are made in case it is a suicide case. They treat it as deliberate attempt to have money and the claim stands rejected.

15. If the person dies during the contestability period

This period normally falls between the initial 2 to 3 years of buying the policy and some companies reject insurance claims made between this periods.

So these are some of the reasons your insurer can look upon when you make a claim so try to avoid any of the situation above.

Even if by mistake, you violate any of the terms and your claim is rejected, you can appeal in the consumer court. In most of the cases, consumer court favors the policy holder only.

Do you have any good or bitter experience with your insurance company. Share the same with others through the comment box below.