You may feel safe when you have insurance for your valuable belongings like home, car, or business assets. But what if something bad happens to those insured objects and the insurance company do not pay for the claim you make ? or maybe they would only pay the amount that is far less than the amount you claimed ? That would be so detrimental, since you have spent money on the premiums.
Mostly, These things happen because of the mistakes made by the policy holder. That is why as a policy holder you should know what are the things that can get your claims rejected or not being paid like the amount you requested, besides that of course, you should also know how to make sure that you get a full payment for your claims.
Common reasons for claim rejection and not being paid as the amount requested
Exclusion Clauses
This is a very common mistake made by policy holders, they simply made a claim for the risks that are under the exclusion of the policy. this might happen because they do not read and fully understand their policy in the first place which is a very important thing to do.
Less Documentation
For any kind of insurance claims the insurance company will ask you to complete all the necessary documents to process your claim. If you do not have all or maybe just one of the necessary document, then the insurance company has the right to reject your claim. For example, if you do not have a police report for a claim that has something to do with criminal acts, then the insurance company will not process your claim.
Carelessness
You will not get paid if it is proven that the claim occurs because of your own fault. For example, if the theft occurs at your home you will not get the claim paid if it is proven that you left your house unlocked.
False or Inaccurate Information
If you give a false or inaccurate information when you book your claim, not only the insurance company will reject your claim when they find out about this, but there could also be a law suit against you for doing such thing. Your claims can also be rejected if you are proven to give false informations when you buy your insurance.
Different Value Estimation
You might get paid less than you claimed simply because the insurance company estimates that the value of the item is less than what you claimed. An insurance company usually makes estimations with market value, and you can also do a cross checking to see whether they give you the fair estimation or not by looking into the market value for the item by surfing the internet or any other way that you are able to do.
The above things of course do not represent all the things that might caused your claims for being rejected, but they are the most common things that you must be aware of before you make an insurance claim.
So in order to make sure that your claims paid by the insurance company you have to avoid the 5 things above and instead, here are the things that you must do:
- When you buy an insurance, read the fine print and try to understand all the terms and conditions stated in the policy, and if there is something you are not agree with, quickly negotiate it with the insurance company.
- Only give valid and accountable information when you buy insurance or when you make a claim, lying maybe can help sometimes, but it gives a lot bigger risks than what it can benefit you.
- Make a claim as soon as possible, call the insurer when you experience a loss, the sooner you make a report the quicker and easier your claim process goes.
- Keep all the necessary documents you might need someday when you make a claim, and quickly deal other necessary documents that you do not have already.
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