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Insured! Beware, you may still not get all the benefits

Insurance companies say when they do, they reject claims on legitimate grounds. Now if such a thing happen when the breadwinner is no more, you may land up in a major soup. So it's high time you check and recheck your position and stay genuinely protected.

June 26, 2015 8:53 IST | India Infoline News Service
Buying insurance is not enough, maintaining it and doing everything to get the most out of it is a part and parcel of the entire process of staying insured. What use of spending high sums of money to buy an insurance policy if you cannot get the benefits when it comes to utilising it. It does happen. Primarily because of the policyholder's negligence, attention to details and also mainly due to lack of information.

Insurance companies usually try and settle all claims. Yet, the claim settlement ratio is never 100 per cent, that even when the regulatory vigil is so tight and there are all legal means and consumer protection mechanisms to fight against such denial of benefits. So why does it happen? Is there something that you have not done properly to fall in that category of claims rejection when the need arises tomorrow?

Insurance companies say when they do, they reject claims on legitimate grounds. Now if such a thing happen when the breadwinner is no more, you may land up in a major soup. So it's high time you check and recheck your position and stay genuinely protected.

One common reason why the claims get rejected is because of lack of information in the proposal form. Most common mistake which life insurance consumers make is to allow their insurance agents fill the form on their behalf. Ideally, you should do it yourself or make sure that you check and recheck every point in detail if someone else happens to fill up your form. Remember, the insurer will keep referring to these details when the time of a claim settlement comes.
 
o this the first step to take when it comes to insuring yourself genuinely. Remember, false disclosure, wrong disclosure of non-disclosure of material facts can be a strong ground for rejection of an insurance claim.

Another major issue is with concealment of information. It is critical to provide the right information about your age, occupation, smoking habits, alcohol consumption, pre-existing diseases, family history and details of any other policies you may hold. Hiding or giving wrong information on any of these counts can give your insurer a loophole to reject your claim.

Many insurers say customers often tend to hide pre-existing ailments while filling up forms for an insurance policy. But it may so happen that you may eventually have to raise a claim on account of such a pre-existing ailment, which is bound to get rejected. 

Often, customers buy a policy without understanding the details or without being informed about the exclusions and other conditions, which is recipe for disaster as in such an event you are bound to get rejected at some stage because you may fail to meet a certain condition. Problems may also arise if you have lapsed in premium payment or if you have not given the right details or updates about the nomination status.

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