Just because you have an insurance policy does not automatically mean that you will receive a payout in the event of an adverse occurrence. The insurance company where you file a claim at may deny your claim. If you know why your insurance policy will deny a claim, you will be in a good position to ensure you are within the bounds of their terms and conditions so that you receive a payout in the event you file an insurance claim. These are ordinarily found in the fine print of your policy and you should make a point of reading them. Top reasons why an insurer may deny your claim include:
False representation
Life Insurance
When you lie to your insurer in any way with regard to your policy, either when you were getting it or when an insurable event happens, that is adequate ground for them to deny your claim. Depending on the severity of your lie, your policy may be cancelled altogether. For example, if you get disability insurance based on a purported injury and it is later found out that you were not injured or the extent of the injury was not as severe as you initially claimed, your insurer is within legal bounds to stop production payments to you for the same. They may also rescind the policy. Some misrepresentations are punishable by law and you may face prosecution once discovered.
Exploring The Top Reasons Why insurance Claims Are Rejected
If the event is not insurable as per your policy
Every insurance policy has exclusions as to what it will not cover. For example, you may have life insurance taken out against a house member but the occasion they commit suicide, the policy will lapse. If you have health insurance and want to undergo a cosmetic procedure, if the health you are trying to fix is not determined life threatening or medically beneficial, your claim may be denied. So are procedures that are determined to be experimental in nature even if they may save your life.
Inability to prove liability
If for example you are complex in an auto accident, the police will decide who is at fault. The insurance branch will also check to make sure that the driver was fit to drive that vehicle. If you file a claim against an insurance company for damage to your vehicle by a man that they have insured, they may deny the claim if it is found that their party was not to blame for the accident or that you were not authorized to drive the vehicle.
If you have surpassed the statute of limitations
Statute of limitations is the timeframe with which unavoidable laws apply. Once the statute of limitation expires, you are unable to legally seek any recompense or retribution. Just like in the legal fraternity, insurance statutes vary from state to state and it is good to know this way in advance. It is best to file a claim as soon as inherent so that you are within the stipulated statute of limitations that has been set by the state in which you reside.
Exploring The Top Reasons Why insurance Claims Are Rejected
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