Insurance claims: Why they are rejected…?

Insurance claims: Why are they rejectedThere are “n” no. of insurance claims received by companies every single day and every single month.

But is every claim approved…?



I think this you need to ask yourself…!

Did you misinform them or hid something at the time of purchase…?

It’s a very common scenario where we usually come under the influence of insurance agents and hide facts. This for the time being keeps our insurance cost low but we pay heavily in future. The consequences we face generally come in the form of CLAIM REJECTIONS.


If unfortunately the claim for life cover is rejected then:

  • Not only the family loses the much needed financial support but,
  • They also bear the never ending trauma, the trauma that will haunt them for the rest of their lives.


If you think that by misinterpreting or hiding facts, you can keep your insurance costs low, then I will suggest thinking again.

The insurance you buy, directly serve your family. It’s an agreement between you and the company stating that if something happens to you then your family will be taken care of well.

This agreement binds the insurer to fulfill its promise.

Since, the agreement also binds you with the facts provided thus any misrepresented info. are dealt with rejections.

List of reasons why your Insurance claims are rejected…

Reasons why insurance claims are rejected

1. Careless approach:

We always remain in a hurry. We rush up too much for frivolous things that we forget to focus on stuff that really demand our attention. And the same we do with our insurance agreement.

Buying insurance is probably the most important decision in life. Thus the agreement needs to be well read as it demands lot of info. But instead of taking care of it ourselves, we leave everything on the agent.

And what he does is, hide all the facts that could increase the cost of premium. This he do to make his client happy and make his commission in the process.

I warn you...


If you also go by this approach then you should seriously need to re-practice. Though you are dealing with an agent but make one thing very clear, your agent won’t pass your claim. He is just an employee working for the company.

When you purchase the policy, you are not cross checked till the time you ask for the claim. And when the company refuses to pass the proceeds then thinking your insurance agent will come and rescue you will be a sheer waste of time.

Thus, change the way you practice and be more careful.

2. Hiding medical records:

Hiding medical records

If the company asks for your medical history then it is for purpose. It is generally on the basis of medical records that the risk to the company is assessed and the premium calculated.

If you hide or do not these records then you will breach the whole purpose of the agreement. As already said that you are not questioned when you purchase your policy but if something found fishy, then your claims may suffer on medical grounds.

3. Avoiding medical tests:

Medical Test

We generally pay heavily for our laziness. If you avoid taking medical tests then though you would be eligible to buy a policy but you can be rejected on the same ground.

Though medical tests are kept optional by insurer but by taking it you strengthen your facts. And if you are ever questioned on your health then you will have every evidence by your side.

4. Hiding old policies:

Hiding your old policies

Even if you play fair, you can be rejected on the ground of hiding old policies. Not many people know that if you already have an insurance policy of the same nature then you must disclose it to the company.

Anything missed and you will be held accountable… You will pay heavily for your ignorance.

Thus make sure to read the offer documents carefully before you decide to invest in new one, as you may end up losing both.

5. Filing Lapsed policy:

You may be carrying a lapsed policy

This is one of the most common mistakes that people do, “They unknowingly file for a claim for their lapsed policy”.

Though it is one of the most obvious things to understand, but people generally commit this mistake.

Filing for a claim is a time bound process. If you don’t do it under this specified slot then you may lose all rights to have your claim accepted.

One other mistake that people most often do is waiting for the claim to automatically get processed. Please bear in mind that insurance company won’t come to your house to enquire about the event. It is you who have to inform them. Unless you do it your insurance company won’t initiate the claim process.


Ask your insurance agent or the company themselves about the time within which you can file for the claim.

6. Giving wrong info…

Please avoid the wrong way...

No matter what, people who want to cheat will find their way anyhow. But one should know that insurance is a highly regulated industry. If you commit any mistake then it is generally dealt with zero tolerance where you will bear the brunt.

Thus any wrong info. passed when found (most probably it will) then you will only lose.

When buying insurance you are expected to maintain transparency. If you hide or try to manipulate the facts then though initially nothing would be said but you will lose big time when your claim will be rejected.

“Insurance is a great financial tool that will take care of your family in their hard times, thus try not to play with it.”