Insurance is an integral part of risk management that provides you coverage for the various types of losses that occur in our daily lives. There multiple companies offering a vast range of insurance policies to protect your health, life, assets, vehicle, etc. You can choose from a wide variety of insurance policies according to your needs and requirements. The company or person offering you the insurance is known as the insurer or underwriter, and the person purchasing the policy is known as insured. You must ask all the queries and doubts such as can you have more than one life insurance policy and many more. Everyone has an insurance policy because of the claim it offers, but what if the insurance company rejects your claim and pays no compensation. Such a situation usually occurs when you don’t read the terms and conditions of the policy carefully, and the loss occurs due to any cause that is prohibited in the proposal from.
Some most common reason behind the rejection of your insurance claim
Hidden facts related to the medical condition and family background
The insurer makes you fill a form and sing a policy in which you have to reveal all the crucial facts and information related to your health, routine life, family background, etc. You must be brutally honest while getting life insurance. You must disclose all facts such as drinking and smoking habits and all other crucial information about your health. In case you die, then the insurer might reject your claim if he finds out that you hid any of the above information and facts. You must disclose every minor detail in the proposal form to avoid facing any issue later on. Having your policy get rejected is better than getting the claim rejected.
Hiding ailments and other health conditions
Diseases, ailments, and other medical conditions are an essential piece of information that you need to disclose in the proposal form. If you try to hide any of this information then chances of having your claim rejected are much higher. If you are willing to get a policy that will cover the risks related to your health, then you must disclose all the information beforehand to avoid getting your claim rejected. Most of the policies offer various claim benefits for different health risks, but to avail them, you must tell about all your diseases and medical conditions.
Filing the claim late
There is a certain period in which the nominee has to file the claim for the insurance policy. If any delay occurs, then the insurer might get it investigated, which may result in the rejection of your claim. Investigations and other activities take a handsome amount of time, which can turn out to be the cause for your claim rejection.
Every policy has some amount of premium that the policyholder has to pay regularly. You must pay the premiums without any lapse to enjoy the maximum benefits of the policy. In case you miss any payment of the premium, it might become a significant cause of your policy’s rejection. You get a grace period after you miss any payment of the premium, and if you pay the premium in the grace period, then there are chances that your claim will be approved, but once the grace period finishes, there is no chance that you claim will be accepted.