Rejection of the Death Claim

We mostly listening the line, that his death claim got rejected. It is not due to the insurance company is fraud, Have we ever thought? Why insurance company had decline to pay the claim?

If you go through the claim settlement ratio of Life Insurance Companies over the internet, you will see there is a Financial Year wise chart with Claim submission, Claim accepted and Claim Declined and percentage of Claim Rejection.

It will help you to decide which Life Insurance Company is right to go with for your family security, as whose claim settlement ratio is high, definitely that will be best, but there will be little tough to take Life Insurance Cover from that Company.

Let first see the reasons for which Life Insurance Company decline the Death Claim;

  1. Concealed the information – Don’t hide any information from your insurer, by intention or by mistaken.
  2. Avoided the Medical Test – Never refuse to go through any medical test conducting by insurer, it will surety for your claim acceptance, if there.
  3. Policy Lapsed – Never postpone the premium after due dates, policy is your child and it will definitely take your your family.
  4. Concealed the Medical History – Never conceal any medical history from your insurer, it may cause to decline the claim.
  5. Proposal Form incorrectly filled – Try to fill your proposal yourself with correct and true information.
  6. Nomination details not updated (in case of Nominee has passed away) – Time to time update the Nomination details with your insurer.
  7. Violation of Insurance Contract – never try it.
  8. Involvement in Hazard – Don’t do hazard with your life.
  9. Involvement in Riots or Anti-Nation activities – Insurance companies don’t accept claim in this category.
  10. Overdose of Drugs or Drunken driving – claim never accepted.

Be aware of mentioned points and transfer your tension of family security to Life Insurance Companies.


Amit Saxena

Financial & Insurance Consultant
MaxLife Insurance Co Ltd & MaxBupa Health Insurance

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