Life insurance is one such essential part of one’s life where it fulfils various needs of a person who is eligible to take it. Getting a life insurance policy for yourself and your loved ones is the best investment as it secures you from unforeseen and unfortunate incidents and expenses that may follow. Insurance claims are often settled but at times they may be rejected too. Be it on the grounds of false information, misleading data, or any other objection, an insurance company can reject Life Insurance claim as per the norms laid down in the policy issued to you. An insured should be cautious enough to submit mistake free proposal form with all relevant information correctly mentioned and the claimant must ensure that all relevant information is provided at the time of lodging the claim. For your assistance here we have highlighted various Life Insurance claim rejection reasons that one must be aware of to avoid errors.

Concealment of material information or non-disclosure of details:

It may so happen that unknowingly the customers may not disclose some information related to their health or habits which they feel is not relevant. People often provide false information including their age profession income etc. but this should not be done as these are relevant for determining your policies’ premium and coverage hence you should provide correct information and even cross verify the details filled by the insurance intermediary to avoid any concerns in future. On spotting that if any material information was withheld then as per the terms and conditions of the policy that was taken the life insurance claim rejected. One should always make sure that while filling the proposal form all relevant information should be declared prudently.

Default in payment of premium

Not paying the premium in time results in lapsation of the policy and cessation of life insurance coverage and as per the terms and conditions of the policy the claims will be rejected which is very disheartening for the claimants. Insurance companies often notify through messages, alerts, emails etc. for reminding about the premium payment hence one should certainly make sure to adhere to the datelines for making payments of premium on time so that the Life Insurance coverage does not stop at any point of time.

Nominee details not updated

At the time of issue of policy, the details of nominees are filled up but whenever the change of nominee occurs it is not updated in the policy which at the time of claim results into the policy claim amount money being transferred to the heirs as per the prevailing rules and it becomes very cumbersome for the claimant to prove his relationship with the policy holder this can be a painful process. This is why it is important for the policyholder to update nominee details timely.

Not complying to the conditions of medical test under the policy by the proposed

At times understatement of age, concealment of treatment record, health conditions or non-disclosures of other policies taken from other insurers results in improper underwriting and avoidance of medical tests by the proposer. This when comes to light at the time of claim results in rejection of claim by the company.

Delay in filing Claims

Most people file insurance claims within time but in some instances, there might be delay in lodgement of the claim from your and may lead to a delayed payment from the insurer hence to avoid this one should file claims in time with all relevant details that are available there. All such measured can ensure seamless claim settlement without causing any hardships to the Claimant