Reasons Why Insurance Claims May Get Rejected
Imagine going through the grief of losing a loved one or the sorrow of seeing your close people go through critical health conditions and at the same time juggling with financial liabilities. Isn’t it too much to handle at once? If you, too, worry about your insurance claim getting rejected when you need it the most, then you must take a look at the following few reasons. Avoid these mistakes to ensure that your nominees receive the claim when they need it the most,
Incorrect information in the application form
Your application forms are not a one-time procedure. They are evaluated even when you file for claims. Any misleading information will put you at risk of your claims getting rejected. False information can sometimes lead to insurance companies completely dropping your policy without returning your premium amounts. Hence, to avoid such troubles, make sure that you specify and enter all the information correctly.
Hiding medical history
It might seem very easy not to mention any pre-existing medical conditions and hide it to get better coverage. However, insurance companies have well-established networks with hospitals, and hence, they get a detailed report of your health conditions when you file for claims. It is foolish to believe that hiding medical history from your insurer is easy. Avoid any such insurance blunders and safeguard your family from financial liabilities.
Your circumstances are excluded in the policy guidelines
This is the most common mistake committed by policyholders. Most policy buyers do not take a look at exclusions and end up believing that all the health conditions will be taken care in the policy and their nominees will receive the sum assured regardless of the circumstances of the death. When buying an insurance policy it is important to ask your agent about the exclusions. For example, in life insurance policies death due to hazardous working conditions are often excluded or has limited coverage. For health insurance, some health conditions that are inherent or auto-immune are often excluded from the policy coverage. To avoid the risk of claim rejection, read all the policy guidelines and all the rules thoroughly.
A lapsed policy will not pay out any claims even if you have paid all or few premiums. If you have not paid all the premiums or not made the payments on time, check if your policy is still active and if you have to pay any penalties. Some policyholders don’t check if the policy is expired. Always keep in mind the duration for which you are covered under the policy. Check for
repayment terms after expiration, depending on the type of your insurance policy. You can also extend your policy duration after it is lapsed by informing your insurer and continuing your premium payments in some cases. It is better to read all the documents and take care of all the above factors before it’s too late. Apart from the above reasons, you must also check your insurers claim settlement ratio. Read the reviews and see under what circumstances your prospective insurance provider has rejected claims in the past. By thoroughly checking all the parameters and being aware of all the policy guidelines, you will not have to worry about claim rejection, and you can leave all worries about financial troubles for your loved ones.