According to the Irda, of the 7.82 lakh life insurance claims filed in the year 2010, nearly 20000 families were denied the money that policyholders had thought would reach them if they died. Some of the new insurance companies are very strict with their rules and regulations thereby making many claims invalid. Let’s see some of the common reasons why your claim is rejected.
Why Claims Are Rejected?
Death Occurring Early : If the person insured dies within 2 years of buying the policy, the insurer will monitor the case closely. This might take even upto a year.
Concealing Health Condition : If the insurer believes cheating in case of deliberate hiding of health ailments he might turn down policy.
Family and close relatives medical condition : If close relatives suffer from a disease but it’s not mentioned in form, the claim may be turned down.
Detail Of Occupational Risk : Certain jobs carry a high risk. If the policy holder has not correctly stated his occupations the claim can be refused.
Over Valued Claim : Buyer must declare clearly his income and and other insurance plans taken by him. Taking a high cover and not mentioning other policies or plans raises doubt and suspicion in insurer’s mind.
What One Must Do?
Dont Just Trust Your Agent Alone: Check and fill the application form all by yourself. Dont forget to make a copy of it.
Dont Hide your Health condition : Do not withhold any information relating to your health and family medical history. Invalid or wrong details leads to rejection of policy claims.
Dont Avoid Medical Tests : A complete master health check-up test actually helps the buyer. Your policy cant be rejected on claims of pre-existing diseases.
Give correct information : Be correct and honest over your personal details. Give exact information about your age, work-nature, salary etc.,
And finally crosscheck and verify your policies and clarify your doubts if any with the insurer. Dont leave any doubts unchecked.