Why Insurance claims getting Rejected?

 Understanding why an insurer denied an Insurance claim is the first step toward having it approved.

Insurance claims are frequently denied. The primary cause of this is that policy buyers frequently overlook important details. In this article we will discuss about the reasons for rejection of insurance claim.

When buying an insurance, it is crucial to read the fine print.

Insurance claims being denied is nothing new. Due to the insurance policy's conditions, submitting the claim is a time-consuming process. However, there are a few things to keep in mind and measures to take before purchasing insurance that will go a long way toward ensuring that your claims are not denied.

It's intriguing to learn why insurance claims involving fatalities from bicycle accidents have been denied. HDFC ERGO, in denying the claim, cited the fact that the individual was operating a motorcycle with a displacement of 346 cc as the reason the claim was denied. HDFC ERGO has said that any claim arising from an accident involving a motorcycle or scooter with an engine size greater than 150 cc is not valid, citing Exclusion Clause 8 of the Policy Terms and Conditions as the basis for this position.

Remember to carefully read the terms and conditions of insurance:-

In most cases, policyholders fail to carefully review the fine print before signing on the dotted line. Companies add many such stipulations, and you are not aware of them. It's crucial that you read and fully comprehend a policy's terms and conditions before committing to it. Don't put your faith in the broker. There are currently a plethora of online resources available to those seeking policy information. On these sites, you may also look up information on competing products.

 

The way in which the claims are defined also plays a role in their rejection.

The primary reason a claim is rejected is its definition. An issue is defined differently by the insurance company than it is by you. That is, assuming you have home insurance that covers theft. Your claim may be denied if you or any of your employees have been caught stealing. Only when there is conclusive proof that a thief entered your home with the specific intent to steal will an insurance company pay up on a theft claim.

You have of state clearly the pre-existing decease before signing agreement with insurance company:-

The majority of health insurance applications are denied due to pre-existing conditions. If you have a pre-existing condition and did not disclose it when you signed up for insurance, the firm has the right to deny your claim. If you're buying health insurance, it's crucial that you take the time to investigate any pre-existing conditions you may have.

 

For this reason, your trip insurance claim can be denied:-

If your flight delayed or cancelled, the insurance company will compensate you financially. Still, many caveats exist in this as well. It does not matter if the airline has to cancel or delay your flight because of an act of nature; your claim still be processed. The claim will be denied if you accidentally miss your flight.

Don't wait to file a claim after an accident:

Claims sometimes denied because of unreasonable waiting periods. Keep in mind that the longer you wait to submit your claim, the greater the likelihood that it will be denied. There is typically a grace period of seven days to thirty days before an insurance company will even consider your claim. To avoid unjustified claim denial, it's best to file a claim as soon as possible following an incident.