Default in premium payment is a major reason for rejection of life insurance claims. Insurance companies often conduct medical tests to verify the medical information provided by an applicant.
You buy a life insurance policy for yourself and your loved ones. This is a good decision. This protects you from unexpected events and expenses. Of course, companies settle most claims in full. But sometimes it gets rejected due to some reasons. Be it on the basis of wrong information, misleading data or any other objection, an insurance company can reject life insurance claims as per the norms. Let us consider some important things for this.
Giving wrong information or not disclosing details
If you provide incorrect information or do not disclose required information, the insurance company may reject your claim. What happens is that people often provide wrong information including their age, profession, income etc., but this should not be done as these are important factors determining the premium and coverage of your policy. You should prudently provide correct information and also cross-verify the details filled by the insurance company to avoid any concerns in future.
Default in premium payment
Default in premium payment is a major reason for rejection of life insurance claims. If you fail to pay your insurance premium, you will not be able to benefit from the coverage of the policy. The insurance company will directly reject your claim citing this reason. Insurance companies often notify through messages, alerts, emails etc. to remind about payment. Therefore, you must definitely adhere to making timely payments to make the most of the coverage in times of crisis.
Nominee name not updated
If you have taken a life insurance policy, then it is necessary for you to add or update the details of the nominee in your insurance policy. This is important because naming the nominee makes it clear who will receive the policy benefits, if unfortunately the policyholder is no longer there. If you fail to add or update the nominee details, your insurance company will transfer the amount to your heir. According to Grow, if this is not settled then the claimant will have to go through several steps to prove his relationship with the policyholder.
Failure to take medical test
Insurance companies often conduct medical tests to verify the medical information provided by an applicant. This is especially done in high risk coverage. You should definitely go through all the tests as you can detect any pre-existing diseases, and the company can provide coverage for the same if needed in future. If you refuse the test, there is a high chance that your claim will be rejected. The company may say that you have some pre-existing disease.
Delaying claim
In some cases, there is sometimes delay in making insurance claim. However, most people make claims within time. However, insurance regulator IRDAI has asked insurance companies not to reject claims on the basis of delay, but you should always file the claim duly. If you file your claim late, there may be a delay in payment by the company.
