How to Avoid Rejection of Your Insurance Claim?
Life Insurance is a promise to serve your family in time when they most need that help. However, to make sure everything happens as you planned, you need to make sure your claim gets approved.
According to IRDA’s Claim Settlement Ratio report 2016-17, published on 4th January 2018, 5 of 24 life insurance companies rejected more than 10 percent life insurance claims. It’s an alarming percentage and can render sleepless nights to anybody who bought a life insurance thinking that it is one of the best ways to ensure that their family does not have to face any financial issues in case they weren’t around.
Also Read: Different Types of Life Insurance Policies
But before you get worried and start wondering whether or not you made the right life insurance policy choice, here’s a fact you must know.
A large percentage of the life insurance claims that get rejected are the ones that are rejected because of some mistake at the end of the life insured. Yes, you read that right. It’s the small mistakes that policyholders make that defeat the whole purpose of buying a life insurance.
Mistakes such as relying on a agent to fill their form, or not going through the policy documents before signing them are some of the common mistakes that policy buyers make at the time of buying a policy.
But don’t you worry because in this post, we list a few things that you must do to ensure that if your family has to file a claim, ever, it doesn’t get rejected.
Fill the form yourself
The process of filling the form may seem time consuming and cumbersome, but make sure you don’t leave the job to the insurance agent. It’s important that you fill up the form yourself to avoid any wrong information being fed in the forms. Even if your agent has entered correct information, there is a possibility of them not being aware of all your details, for example they may not know everything about your medical history.
Do not hide any information
One of the most common reasons for a claim rejection is that policy buyers hide information from the life insurance companies. In case the life insurance company finds out that you have concealed any information, it has the authority to reject your claim on the basis of non-disclosure of material facts. Such cases always lead to a rejection, as life insurance cases can easily sniff such issues. Here are some of the details that you should never hide when filling the form:
- Smoking Habits
- Pre-existing disease
- Alcohol Consumption
- Details of other policies you hold
Pay the premium on time
Insurance companies only settle active claims. If your policy has lapsed because of non-payment of premium, the insurer will reject the claim request. In case you missed paying the premium on due date, make the payment within the grace period. This way, you will avoid any unintentional policy lapse. To avoid disapproval, you can opt for one-time payment that has a lesser premium value, or else, you can set up auto debit from your account to avoid delays.
Ensure the nominee information is up to date
It is necessary that you keep updating the information regarding the nominee, as and when required. For example if you are single you may have updated the name of your parents as the nominee. But, after you get married, it’s advisable to get your spouse’s name updated in the policy, as nominee. That’s because your spouse would be the one who would need financial support to take care of your children and future of the family, in case you are not be around.
Do not avoid medical tests
The life insurer asks you to undergo medical tests, you shouldn’t say no, as these tests are for your own good. Medical examination gives the insurer an idea of your medical history, which could help in an easier settlement of the insurance claim. The medical check-ups are usually reimbursed.
Also Read: How to Write a Will: 7 Steps You Must Know
Scrutinize the policy document
A policy document protects the insurance company from any financial or legal liability that could come up after signing a document with you. It contains all the inclusions and exceptions in the policy in detail. Read the terms and conditions on the policy document carefully before signing, so that you are informed in advance and have the option to negotiate on the clauses and conditions mentioned in the document. Although most insurers don’t make amendments on the document, there’s always a room for minor changes in certain conditions
Got a question?
Worrying about your claim? Ask your new assistant, Alisha, our chatbot, for any assistance on claim settlement. Additionally, if you have a question or want to buy a life insurance plan, you can call us at 1800-103-7766. We will be happy to help!
AN Jul 35/18