Insurance is an essential part of personal finance, as it provides financial protection against unforeseen events. However, the process of making an insurance claim can be complicated, and mistakes can lead to claim rejection or a lower payout.
Here are the mistakes to avoid when making insurance claims:
Delay In Claim Intimation: One of the most common mistakes people make is delaying the intimation of the claim to the insurer.
Says Naval Goel, founder and CEO, PolicyX.com, “If you fail to notify your insurer promptly about your claim, it could result in the rejection or delay of your claim’s settlement.”
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Thus, it is crucial that you inform the insurer as soon as possible after the incident to avoid complications.
Incomplete Documentation: Another mistake people make is submitting incomplete documentation.
Says AK Narayan, CEO, AK Narayan Associates, a financial planning firm: “Claims often get rejected due to inadequate or incomplete documentation.”
The insurance company needs specific documents, such as FIR or police reports, bills, and medical certificates, to process the claim. Failing to submit these documents can result in the rejection of the claim.
Lack Of Information About Policy Terms: Many people do not read the policy document carefully, thus resulting in confusion about the coverage and the claim process.
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Says Shweta Jain, founder, Investography: “Familiarising yourself with a policy’s terms and conditions, including any exclusions, is of utmost importance.”
Knowing the policy details can help you in avoiding claim rejection due to exclusions, while ensuring a quick settlement.
Incorrect Information: Providing incorrect or false information in the claim form can lead to claim rejection.
“The insurance company checks the details provided by the policyholder, and any inconsistencies found can lead to the denial of the claim,” says Raj Khosla, founder, MyMoneyMantra.
It is essential to provide accurate and honest information to avoid complications during the claim process.
Not Following The Claim Process: Each insurer has a specific claim process that policyholders need to follow. Not following the claim process can lead to delays in settlement or rejection of claims. Thus, it is crucial to follow the claim process, such as filing the claim within the stipulated time, submitting the necessary documents, and providing accurate information.
Making an insurance claim is an important process, and avoiding these common mistakes can help ensure a smooth claim settlement.
Also remember that an insurance claim is not a windfall gain but the fulfilment of the policyholder's right. So, be diligent and careful when making a claim to ensure the full benefits of your insurance policy.
