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Tata Capital > Blog > Wealth Services > How to Avoid Rejection of Insurance Claim?

Wealth Services

How to Avoid Rejection of Insurance Claim?

How to Avoid Rejection of Insurance Claim?

Having the right insurance coverage is essential for financial well-being. It helps you minimize your financial liability in times of crisis. But even after selecting a comprehensive plan and paying your premiums diligently, your claim might be rejected, causing a financial setback.

In this blog, we’ll share some tips to help you avoid insurance claim rejections and secure coverage when you need it the most. 

Tips to avoid rejection of insurance claims 

1. Proper disclosure of pre-existing disease or other material information

It is important to disclose any pre-existing ailments and other material information to the insurer.

It is also important to disclose any new medical condition or ailment that one might have acquired during the year, at the time of insurance renewal. Any omission or no disclosure can lead to your claim being rejected by the insurance company

2. Read your policy documents carefully

You must understand the terms, conditions, and coverage of your policy. Pay attention to important details like exclusions, waiting periods, deductibles, special conditions, etc. This will help you set realistic expectations for what you can claim.

This prevents misunderstandings and reduces the chances of claim denial due to policy-related reasons. If you don’t understand something, reach out to your insurance provider for clarification.

3. Make timely premium payments

Another common reason for insurance claim rejections is not making timely premium payments. This is crucial to continue your coverage and maintain an active policy. If you delay or miss your premium payments, your policy can lapse, leading to a claim rejection.

To prevent this, make insurance premium payments a priority. Here are some steps you can take-

-Compare different plans and their premiums to select one that you can afford comfortably 

-Set up auto debit to ensure the premium gets deducted automatically on the due date 

-Set reminders a couple of days or weeks before the due date to avoid missing the payment 

4. Raise the claim timely

Most insurance providers have a fixed deadline for claims. For example, some policies may have a strict 7-day window, while others may go up to 60 - 90 days, depending on the type of insurance. If you claim the insurance past this deadline, your claim will be rejected.

It is also good practice to report a claim promptly when the details are still fresh in your mind. This helps preserve critical information or evidence, increasing the chances of your claim being approved.

5. Insufficient/improper documentation

Improper documentation is one of the reasons claims get rejected. Make sure you submit all original documents, tests , reports , bills and other necessary requisites while raising your claim.

6. Get your insurance claims sorted

Having your claim rejected at a critical time can be devastating. Therefore, when claiming your insurance, make sure you are thorough with the policy, have paid all premiums timely, and strictly follow the claim procedure. If the insurance provider still rejects the claim, ask them for the reason and determine if you can appeal the decision.

If you’re looking for comprehensive coverage and a hassle-free claim process, Tata Capital Wealth has you covered. Our experts will guide you to find the right plan for you and your family. Visit our website to know more! 

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