All insurance policies come with a buck load of asterisks (*). The personal accident insurance policy is not so different after all. Accident insurance policy document is a fine print of terms and conditions and not adhering to any could lead to claim rejection.
Ever considered what may happen if your claim for accident protection gets rejected? These could bring your world upside down. You surely would not prefer to experience such misfortune at an antagonistic time. As a buyer of accidental insurance policy, you must comprehend the reasons considered for claim rejection.
Here are the seven ways to lose your benefits:
1. Failure to Renew the Accident Insurance Policy
Your accident insurance policy is a yearly contract that needs an annual renewal by paying a necessary premium on or before the due date. If you fail badly to keep up your promise of paying your premium, be rest assured that your claim would get rejected.
If anything happens to you before renewal or during the post-expiry session, then the insurer may deny the claim, and you lose out on the benefits of the policy.
2. Not Specifying the Correct Nature of Your Job
Although there are jobs which are less risky, specific jobs carry high risk and are certainly life-threatening. For instance- jobs like working in a mine and firefighting. If you are not specifying the correct nature of the job before buying the accident insurance and if the insurance company finds the truth, your claim can be rejected.
3. Concealing Vital Information
Not disclosing information that can have an impact on your health or result in payment of death benefit is considered as “concealment of information”. So, disclose any pre-existing disease or smoking/drinking habits as it can be linked to being a cause of your hospitalisation or death.
Additionally, give accurate details about your age, height, weight, and income to the insurance company. If you haven’t told the company about it, benefits will not be given to you or your loved ones (dependents).
4. Not Disclosing Your Old Insurance Policies
A necessary policy declaration rule states that you must disclose your existing policies to the new company. Although, there are people who are unaware of this rule, some hide this information purposefully, thinking that they will be able to “escape” and fool the insurance company.
However, understand that insurers are very particular about policy-related rules and regulations. Hence, it is essential to declare your prior insurance policies regardless of how much your sum assured is. Not adhering to this rule would lead to claim rejection in the long run.
5. Death or Injury Caused Under the Influence Liquor or Drugs
Even if you renew your accident insurance policy on time, your claim can be rejected if the cause of the accident is liquor or drug abuse. Your insurance company is not obliged to pay for any damage if you were not in your proper state when the mishap occurred. Driving while being intoxicated is a crime that the insurers will notice.
6. Accident Due to War and Foreign Enemy Terror
The accidental disability or death caused due to any terroristic activity, mutiny, war, radiation, nuclear weapon, etc. will remain excluded from the personal accident insurance cover.
7. Intentional Accident
If any accident occurs consciously or intentionally (suicide), then the claim will not be entertained. Also, injury or death caused while engaged in an adventure sport or hazardous activity will also not be considered during claim settlement.
It is wise to be responsible and read all the terms and conditions mentioned while purchasing an accident insurance policy. Be very transparent while signing up for this insurance.
Not unveiling the important details could land you in an unfortunate situation. Try not to let your efforts and money go waste. Be extremely watchful while purchasing accident protection, be secured and guaranteed!