There can be nothing more depressing than getting a claim rejected. According to the annual report of the Insurance Regulatory Development Authority (Irda), the number of claims rejected by life insurance companies for 2013-14 stood at 18,423. The amount involved was Rs 625 crore. The number of claims pending at the end of 2013-14 was close to 8,500 with a pending value of Rs 450 crore. Of these, 1,861 were pending for more than one year.
Moral of the story: Claims get rejected and premiums that you have been paying for so many years stand wasted.
If you too, like many others fear that your claims might get rejected and this fear becomes the sole reason stopping you from getting insured, then fear not as there is a way out of this problem.
Here are a few things you should remember to avoid getting your claim rejected:
Stay Away From Non- Disclosure
A lot of times agents misguide and ask you to not disclose certain required things because that might increase your premium amount. However, you should stay away from such malpractice. For example, if you are a smoker but don’t disclose it in your policy to avoid hiked premium it might cost you dear at a later stage. You might get a policy at low premium then, but this will increase your chances of claims rejection at a later stage. A good idea is to read the documents carefully and fill the form yourself. Or buy insurance policy online so that there is no discrepancy.
The thumb rule here is to claim as soon as the misfortune strikes. At least inform the insurance company almost immediately. For example, you or the policy holder meets with an accident then call up the insurance company and inform them. This way they will have it noted in their database and will guide you on the right process.
Submit Documents Properly
Claim disbursement depends majorly on documents. You should collect the required documents carefully and submit them as per the process. Most of the claim rejection is due to a missing document or because of inconsistency in the declarations mad e in the documents submitted.
Read the Policy Carefully
This point has already been stressed enough. Still, the fact is that most people underestimate its importance. People don’t read or understand the policy clauses properly and then claim for something for which they are not covered. Obvious result is rejection of claim. For example, you submit a medical claim and are told that this particular illness or surgery is not covered. Avoid such rejections. Know what you are buying.
An effective hack to this problem is to buy insurance policies online or by filling your form yourself when buying through an agent. This way there will be no mistakes or discrepancy.
Overcome the fear of claim rejection. Stay insured, stay safe!
You may like to read : A Checklist For Claiming Insurance: The Do’s And Don’ts