Many people assume that once they buy insurance, the claim will always be paid. However, claims can get rejected due to avoidable mistakes. Knowing these reasons can help you secure your family’s future better.
Major Reasons for Claim Rejection
1. Incorrect Information in Proposal Form
Hiding medical history, smoking habits, or income details can lead to claim rejection later.
2. Policy Lapse Due to Missed Premiums
If premiums are not paid on time and the policy lapses, the insurer is not liable to pay.
3. Non-Disclosure of Existing Policies
Failing to mention other policies can create issues during claim verification.
4. Delay in Claim Intimation
Late reporting of claims can complicate the settlement process.
Conclusion
Being honest and keeping your policy active are the best ways to ensure smooth claim settlement. Regular policy reviews and guidance can prevent such problems.
