The Buyt Desk
The rejection of an insurance claim defeats the purpose of buying insurance. This leads to a trust deficit between the consumer and the insurance companies. The main reasons for insurance claim rejection is the difference in interpretation of terms used in the policy. With careful reading the terms and conditions and knowing in what conditions an insurance claim can get rejected, one can avert a situation like this. E.g., is the definition of burglary, an act involving the unauthorized entry or exit from your home or attempted threat by unexpected, forcible, visible and violent means, with the intent to commit an act of theft.”
If going by this definition, then theft does not happen by forceful entry, i.e. done by domestic help, or any other way is not entitled to the insurance claim. Therefore, it becomes important that you check the wording in the policy before taking the plan to avert the chances of your insurance claim getting rejected.
Let us check the other reasons for insurance claim rejection.
Pre-existing Illness – Hypertension is a common lifestyle disease, and many insurance companies do not accept the claim for the same. An insurance company might reject the claim citing the reason that the insured person did not declare this illness at the time of buying the policy. Thus, while buying a policy, make sure you fill in all the details correctly in the proposal form and cross-check all details that seem confusing. It is better to discuss all types of illnesses with the person concerned to avoid confusion.
Flight Cancelation Or Delay – If you have taken travel insurance or planning to have it, one point you must check with your insurance company. Many companies do not have terms and conditions for flight cancellation and delay insurance claims. E.g. some insurance companies pay only for trips that have been canceled by airlines because of natural disasters or any other reason. If the passenger misses the flight because of his mistake, the policy will not cover the claim.
Delay In Claim Filing – Insurers give a period to file a claim. It is usually between 7-30 days after the event, depending on the policy. It is therefore important to file the claim as soon as possible to avert the chances of rejection.
Many incidences of insurance claim rejection impart the lesson that one must not buy insurance in a hurry. Instead, cross-check every detail, read terms and conditions meticulously before signing the documents.
