How can you Prevent your Life Insurance Claims Rejections?

When do you Need to Raise the Claim?

Your life insurance products come in different shapes and size. You must select the one as per your need and raise the claim accordingly. You may be required to raise the claim in some common events as follows.

• The demise of the Policyholder
• Major Accidents
• Critical Illnesses
• Any other

What is the Process of Raising the Claim?

The process of raising the claim is quite simple. You just need to contact your insurance provider and submit the required documents. If you have purchased your policy online through web aggregators like PolicyX than the process is even simpler. Irrespective of the Insurance provider, you have selected such as HDFC Life, PNB Met Life, Max Life, the process remains somewhat similar. You just have to adhere to the defined procedure as communicated and documented in your policy.

5 Mistakes to Avoid Claim Rejections

• Declare all Mandatory Details at the Time of Policy Commencement
  You should never hide any details from your insurers. If you die because of any of the undisclosed reason that your claim will surely get rejected. This is applicable to the people who smoke on a daily basis. It is also true for the people who suffer from any pre-existing diseases.
• Avoid the Policy Lapse
  In order to get the benefits of the claims, you must renew your policy on time. Every Insurance policy gives you the flexibility to renew it as per your convenience. Most of the people prefer to renew it every year. You may start getting alerts one month before your policy alter. You must make the payment of the premium before the due date to continue the same. If you raise your claim against a lapsed policy than obviously there is no chance for you to get the benefits of the claims.
• Don’t Raise the Wrong Claim Amount
  Whenever you buy any policy there is an amount of the sum insured that is decided in advance. It is applicable to any kind of claim. You may have a different amount of sum insured fixed for your life as compared to the accident. Claim amount that you must raise must be directly related to the amount of your sum insured. If you raise your claim more than the sum insured than your claim may not be approved. Similarly, if the amount of the claim raised is less than the sum insured than you will deprive yourself of the benefit of the remaining amount.
• Submit all the Documents & Follow the Process
  For raising your claim you must submit certain documents as required by your life insurance policy. Some of the documents that you need to submit might be in the original. You must check the process and the requirement about how you need to submit your documents. If you don't submit these documents in original than also there are chances of your claims to get rejected. Along with submitting your document in original, you must also fill the claim form as issued by your insurance company. Submissions of all the mandatory documents are an essential part of raising the claims.
• Contact your Insurance Provider within the Defined Timeframe
  You must raise your claim according to the timelines as defined by Insurance regulatory and development authority of India (IRDAI). If you fail to raise your claim within that time period than your claim may be considered as null and void.
• Claim Should Not be Raised by Anyone Else Other Than you or your Beneficiary
  Only your beneficiary will be entitled to get the raised claim amount. If someone raises the claims besides you or your nominee than it surely is doomed to get rejected.
• Read the Policy Documents Thoroughly
  All the life insurance products and plans offered by different insurance companies got different rules and regulations. You must read the policy documents thoroughly for a better understanding of their terms and conditions. Thorough understanding of your policy terms and conditions can always help you in preventing any kind of claim rejections.

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Your life insurance is your investment, you must not let your claim get rejected because of your carelessness. By avoiding the mistakes above you can ensure to get the settlement of your claims as per policy term and conditions. Most of the insurance firms facilitate 98% claims settlement, remaining 2% gets rejected because of the mistakes committed by the policyholder. Most of these lapses or mistake are because of the reasons as cited above. You can stay updated about all the procedure so that you can avoid the claims to get rejected because of any aforesaid reasons.