Life Insurance Policy Claims

Life insurance policies
are taken with the idea of providing financial security to the family
which is dependent on them. Sometimes making claims becomes problematic
if some details are not given to the insurance company. This causes
problems to the nominees to claim the amount.

Generally people who take insurance
policies do not fill the applications form personally. Many times people
do not even read the insurance forms though these are very important
for the life. Many a people do not even know that there will be
questions in the application form about health and habits of the policy
holder. Insurance agents write ‘not applicable’ opposite to many such
questions. Thinks like this make a problem while making a claim in
unfortunate situations. There are many reasons for the insurance claim
to be rejected.

• Number of insurance policies has increased in the recent
  times. This has increased the number of claims. For 90% insurance claim
  rejections, keeping the health details secret is the main reason. If the
  policy claim is rejected for these reasons, there will not be any
  advantage even if the ombudsmen or consumer forums are approached. If
  the policy amount is more than Rs. 10 lakhs and the policy holder is
  dead within three years from taking the policy, insurance companies
  search for defects.


• Many people have a misconception that policy will not be given if
  the details of ill-health of bad habits are provided in the application
  form. But this is not true. Any insurance company will try to increase
  the business. They will only ask the applicants to undergo some more
  medical tests.

Expired Insurance Policies

Claims will be accepted only when the
life insurance policy is in implementation. If the premium is not paid
on time, the policy will get expired. Claim will be rejected if the
policy holder dies, disappears before renewing the policy. Expired
policies can be renewed up to five years if the policy holder is alive.
Late fee can be paid for renewal of the policy.

Some people do not even inform to even
their family members about the insurance policies. If the policy holder
dies, the family members may not even know to claim the money till the
insurance company sends some information. If the nominees have shifted
to another house or city, this chance also will not be there. Premium
paid till then will get wasted.

• Policy holders should inform the insurance company about the policies that are already taken.


• People are now-a-days taking term policies online. There will not be
  any documents in this electronic method. All the details of the
  policies will be sent to the policy holder’s e-mail address.


• Even if the policy is taken online it is important to take the printout of it.

Rejection of Insurance claim

If the insurance claim is rejected then
the nominees can request for revision of the application within 30 days
from the date of rejection. Every insurance company is setting up
service centers to solve the problem of policy holders. If the nominee
feels that the claim is rejected baselessly they can make a complaint to
the insurance ombudsmen.

Insurance Policy Precautions

When the head of the family who is the
earning member dies, it will be difficult for the family members to make
rounds to the insurance companies. Some precautions are to be taken to
avoid these problems.

• Insurance policy proposal form is to be studied completely and the applicant should personally fill the proposal form.


• Do not ever forget to write the name of the nominee. This is
  important to avoid conflicts between heirs. This will also avoid
  problems in claiming the amount.


• Insurance policy should be carefully kept. Inform the details to family members.


• If the policy papers are given to anybody. Take a Xerox copy of the policy and take acknowledgement.


• If the insurance policy is missing or damaged inform immediately to the insurance company.


• If there is any problem in paying the premium and the policy is expired, renew it as early as possible.


• Do not forget to inform the change of address to the insurance
  company. Phone number and e-mail address are to be given to the
  insurance companies.


• If medical tests are compulsory to take any policy personally go to
  the doctor. Take care that the agent enters the details like height and
  weight correctly.

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