Wealth Guide: 5 ways to ensure that your claims are not rejected

The primary motive of any individual buying an insurance coverage is to ensure that they get financial protection during any mishap or unfortunate situation.

However, a minute mistake can lead to rejection of claims by the insurers to the nominees and this unpleasant situation could be frustrating and expensive at the same time.

There can be several terms & conditions mentioned in the policy document that the insured might miss out on while buying the insurance plan, but it is the policyholder's sole responsibility to go through the policy documents and procedures well in advance and not give the insurer any opportunity to reject your claims.

Rakesh Goyal, Director, Probus Insurance Broker Pvt Ltd highlights some of the five top reasons that can prevent you from claim rejection. Scroll down this article to know more about it:

Do not keep any information as a secret

While keeping secrets to your grave can be a good solution for many problems, but it is a big NO when it comes to buying insurance. Concealing, non-disclosure, misinformation/incorrect disclosure etc of any information can put you under unnecessary stress during the claim process as it falls under the category of “concealment of information” and can ultimately lead to deprival of any benefits that the insurer would otherwise offer.

As a policy seeker, you must ensure that you share complete detail of your past medical history, pre-existing diseases, or any other existing conditions to your insurer without any alteration to avoid any unpleasant surprises later. 

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Processing period

For certain insurance plans, the insured might have to wait for a specific span before making any claim. This waiting period varies based on the type of insurance, insurer, or plan one has opted. In case a claim is made during the waiting period, your claim would get rejected.

Do not delay on filing your claim

Insurers have set certain guidelines regarding the claiming period, which means that the insured/nominee/dependants can make the claim within a stipulated timeframe. Any occurrence of delay while making the claim request might result in the insurer rejecting your claim request.

Update your nominee details on time

You might require to update the nominee details at any point of time for e.g. if you get married you might want your spouse or child to be added as the nominee which wouldn’t be the case before marriage. Since your named nominee would receive any or all benefits, it’s advisable to update this information from time-to-time or whenever needed.

Pay your premiums on time

Finally, pay your premiums before the due date to avoid any expiry of your coverage. Insurance companies often offer certain grace period for paying the premiums in case the insured has missed on one, but it is still highly advisable to not count on this grace period and rather make the payments beforehand.

Such an extension is exclusive for the purpose of paying the payment under certain situations. Nevertheless, if the premium is not paid, the insured is deprived of the benefits/features/coverage of the plan and hence must make timely payments of premiums.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)