Skip to main content

Why Do Insurance Companies Deny & Delay Claims

 

Reasons Of Claim Denial

It's a job of every insurance company to raise their year end profit (after all expenses), give bonuses to their employees, pey hefty salary packages to their CEO's and make more sale. They use every marketing tactics to lure customers by offering discounts, guarantee timely approval of claims and more. One of the most common strategy to achieve this is to deny insurance claims so that they can increase their revenue. Listed below are the most common reasons for claims getting denied although reasons may vary depending of the type of insurance claimed.

  1. Claims are filed too late: Amongst the many reasons of why insurance claims are rejected, the most common one is policy holders are too late to file a claim. Not acting quickly and filing after deadline; will delay the process of receiving the money in some cases and also creates doubt in the mind of insurer.
  2. Not disclosing all the important / relevant information: Many a times, especially health history; people don't report details of previous medical illnesses. Suppressing the facts while purchasing the cover is the major reason why insurance claims are denied.
  3. Loss of policy documents: Claims are rejected if person loses the policy. 
  4. Lying While Claiming: Many a times, people inflate their bills or claims are not reported dishonestly. For e.g. in case of car insurance; if you're the reason for the accident, be honest and disclose the facts to avoid rejection or facing the penalties. Claiming honestly can speed up your process and avoids complexity. So always accept your fault.
  5. Failure to provide sufficient evidences: Providing this adds value to your claim. If you don't submit as many proofs of the damage (for e.g. taking snapshots of the damage, surroundings, keeping receipts as a proof of ownership etc). as possible the process can get delayed resulting in rejection.
  6. Claims lost by insurer: With heap of claims lying at the company; there is a possibility that your claims is lost and hence is not reported in their database which leads to the denial. In such cases, the only solution left with the policy holder is to take speedy action before the deadline for filing passes.
  7. Not informing the company about the new changes: Claims often get invalidated when company is not notified in before any alterations are done by the policy holders. For e.g. damage to car is first repaired and then insurers are notified.
  8. Poor follow-ups: Once claim is made, people don't make a follow-up, keep a record of their communications which causes claims process slow down.
  9. Plan not applicable to other state: If the plan doesn't include applicable state then this causes claims rejection.
  10. Terms and conditions are not read before selecting any policy: People fail to realize that what they've claimed is practically not covered in the policy.
  11. Listening to agent, hiding the facts, filling incomplete details: Often, insurance agents force/ask people to incorrectly/partly enter information in the application. Motive of doing this can be anything – too lengthy form fill-up which is cumbersome since agent has to do this on his own, sales deadline, long list of customers to attend in a single day etc..
 
Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds

Top 10 Tax Saving Mutual Funds to invest in India for 2016 or Best 10 ELSS Mutual Funds in india for 2016

1. BNP Paribas Long Term Equity Fund

2. Axis Tax Saver Fund

3. Franklin India TaxShield

4. ICICI Prudential Long Term Equity Fund

5. IDFC Tax Advantage (ELSS) Fund

6. Birla Sun Life Tax Relief 96

7. DSP BlackRock Tax Saver Fund

8. Reliance Tax Saver (ELSS) Fund

9. Religare Tax Plan

10. Birla Sun Life Tax Plan

Invest in Best Performing 2016 Tax Saver Mutual Funds Online

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

OR

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

OR

Leave a missed Call on 94 8300 8300

Popular posts from this blog

Mutual Fund Review: Religare Tax Plan

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...

Mutual Fund Review: L&T MIP

        This fund won't deliver chart-topping returns. However, over the long run it will not disappoint and end up beating the category average The fund has seen numerous changes at the helm. When Katare took over in October 2007, he made dramatic alterations to the portfolio. On the equity side, he increased the number of stocks to 11 (November) from 2 (September). On the debt side, he added Certificates of Deposit (CDs), while earlier Treasury Bills (T-Bills) and cash accounted for 88 per cent (September 2007) of the portfolio. In November 2007 he exited T-Bills for good. The results impressed. In the last quarter of 2007, it delivered 12.83 per cent (category average: 6.12%). In 2008, the first quarter performance was nothing short of impressive, a return of 9.93 per cent (category average: -3.97%). While other players increased their portfolio maturity, Katare maintained a low maturity profile. While the average maturity of the category was 2.81 years that quarter, th...

PF e-Passbook

  Provident Fund e-Passbook   The Employees Provident Fund Organisation now runs an e-passbook service that enables members to log in and access their provident fund accounts . This facility enables tracking of the money and ensuring that the employer's contribution has been deposited into the account. This facility is available to those whose accounts are with the central provident fund commissioner for maintenance and can be availed at members.epfoservices.in . Registration A member can register at the portal easily by using PAN , Aadhar or passport number as the log in and the mobile numbers as the PIN . This combination enables easy retrieval of information. Accounts After logging in, the member has to choose the state where the employer is located, and enter the code number of the employer, account number and name. These details can be obtained from any existing PF document . PIN To download the passbook, the member will request...

Mutual Funds: Past Performance is not just everything

Many a times your agent / distributor / relationship manager tries to push you some mutual fund schemes by enticing you with a typical sales pitch…"Sir, this scheme has generated 20% returns in the past one year." And this sales pitch often gets louder when the market conditions have been favourable. Some of the agents / distributors / relationship managers have another unique way of luring you. They say, "Sir / madam this scheme has been awarded the best scheme award in the past by a leading business channel"... And hearing all these sales talks you investors very often get attracted and sign a cheque in favour of the respective scheme.   But please ask yourself do you hear these sales talks when the capital markets turn turbulent? Why is it so that your agent / distributor / relationship manager avoids talking to you during turbulent times of the capital markets and doesn't boast about returns generated by the respective funds or awards being conferred on t...

Reconfigure investments to reap benefits in DTC

    Investing for tax benefits under the new Direct Taxes Code ( DTC ) will be different in several ways from what taxpayers are familiar with right now. This will require some reconfiguration in the nature of investments for the investor and they need to be ready to tackle the changes that will come about once the new DTC is implemented from financial year 2012-13.One area of interest for most taxpayers is the manner in which they can extract the maximum tax benefit. Here is a look at the situation and also how it changes from the existing position. Basic deduction: At present, there is a deduction of Rs 1 lakh that is available for an individual when they make investments under specified areas such as provident fund, public provident fund, national savings certificates, equity linked savings scheme and insurance premium, among others. This benefit is available under Section 80C of the Income Tax Act. This has been replaced by a new Section 68 under the DTC where there is a deduct...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now