Radha lost her husband Mahipal and faced another blow when his life insurance claim was rejected. If you have taken life insurance policy don’t think that is sufficient for your family in your absence. Discover the shocking twist that uncovered hidden truths and learn how you can avoid such life insurance claim rejections with complete honesty and planning.
Why Life Insurance Claims Get Rejected and How to Avoid It
Life insurance serves as a financial safety net for families, but as Radha’s real-life story reveals, even the best life insurance plans can fall apart. Her husband Mahipal’s insurance claim was rejected after his unfortunate death, leaving her to uncover shocking truths. Here’s what happened, why claims get rejected, and how you can avoid such a nightmare in future.
Mrs. Radha’s Tragic Story – A Claim Denied
Radha’s heartbreak was added when her husband Mahipal’s life insurance claim was rejected just months after his expire.
Mahipal had purchased a life insurance policy with a sum assured of Rs 6 lakhs, doubling for accidental death, only five months before his death. Radha found the policy while sorting through his belongings and filed a claim, only to face a life insurance claim rejection.
The insurer stated:
- Mahipal had a visible growth on his head, indicating a pre-existing health issue that he failed to disclose.
- He had applied for multiple policies with other insurers, all rejected for the same reason.
- He did not disclose these rejections or his medical history in the proposal form.
The Ombudsman reviewed the case and found the insurer’s rejection is valid. This decision served as a harsh lesson in the importance of full disclosure.
Top Reasons Life Insurance Claims Are Rejected
- Non-Disclosure of Information
- Failing to disclose medical conditions, previous policy rejections, or ongoing treatments violates the trust insurers require to issue policies.
- Early Claims Trigger Investigations
- Claims made within a short time after buying a policy are flagged for detailed investigations. Inconsistencies can lead to rejection.
- Misrepresentation or Falsification
- Any false information provided in the proposal form—intentionally or unintentionally—can nullify your policy.
How to Avoid Insurance Claim Rejection
#1 – Be Transparent with Insurers
Always declare:
- All existing health conditions and ongoing treatments.
- Details of previously rejected policies.
- Other existing insurance policies.
#2 – Transparency ensures your policy is valid and trustworthy.
#3 – Keep Your Spouse Informed
Your partner should know:
- What policies you’ve purchased.
- How to claim them in your absence.
- Whom to approach for assistance in disputes.
#4 – Work with a Professional Advisor
A trusted advisor can:
- Help you choose the right policy.
- Ensure accuracy in your application.
- Provide support during claims or disputes.
#5 – Maintain a Comprehensive Document File
Organize all policy documents, medical records, and communication with insurers in one place. This simplifies the claims process for your loved ones.
Key Lessons from Mahipal’s Story
- Honesty is Non-Negotiable: Misrepresentation can lead to claim denial, as Mahipal’s case illustrates.
- Transparency Protects Your Family: Insurers share data across networks, so hiding details in one policy can impact others.
- Involve Your Loved Ones: Keeping your family informed ensures they can navigate claims confidently in your absence.
Conclusion: Life insurance is a powerful tool to protect your family, but only if managed with honesty and planning. Mahipal’s tragic story highlights the risks of hiding information while taking insurance policies. Learn from this case — be truthful, keep your family informed, and work with experts to avoid complications.
Secure your family’s future the right way, because their peace of mind depends on your diligence today.
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Sir, Do we have to inform to insurance company about our existing health issues every year? Or at the time of taking new insurance policy?
My suggestion is to document by emailing to them in case of any new health insurance that might come up after taking a health insurance plan and incorporate in new policies as and when you take.