4 Reasons You Will Not Receive Your Insurance Benefit

Every insurance claim is very well investigated by insurance companies before payment is made.

The investigation, as it is intended, is to find any reason not to pay policy holders their sum assured.

Companies therefore invest heavily in their investigation team or department probably because they save money for the company.

You may not receive any benefit or you will receive partial payment of your benefit after paying your insurance premiums over the years if you do not consciously observe the following before and during the lifetime of your policy.

Most insurance policies make provisions for refunds of all premium deductions to the policy holder provided the policy holder requests termination of the policy within thirty (30) days of signing the policy document.

Insurance policies are very good, especially when such policies are taken up in the right context of the policy holder. Everyone takes up insurance policies against any unfortunate incident like theft, fire, death, permanent disability, motor accidents etc. Insurance policies, therefore, are meant to provide peace of mind for the policy holder that can add to the quality of life of the policy holder. However, policy holders can become victims of their own insurance policies because such insurance policies can not help them in the event for which the policy was bought. Some of the reasons for which the sum assured in insurance policies would suffer redemption are as followed.

1. Lying or providing the wrong information: Certain information is very vital for any insurance policy document and when such information is provided inaccurately at the start of the policy, it will definitely have an impact on the sum assured in the contract. Providing a wrong date of birth which significantly has an effect on the amount of premium paid, especially for life policies, will be subjected to review when it is discovered, especially when the event has occurred. The reason is that older people must pay more than the younger ones because it is assumed some of the events captured could occur earlier for the aged people and so any older person paying less is a cheat to the other policy holders and/or could as well collapse the policy. Also, providing false documentation for vehicle insurance policies will also be subjected to review when the policy is triggered. Some policies also require any existing health condition to be listed at the start of the policy. Failure to list such existing health conditions could invalidate the policy when an event occurs, especially for life assurance policies.

2. Not reading the entire policy document: It is a fact that some people purchase insurance policies without reading the entire policy document. The policy document which is the basis for the policy contract contains all sensitive information or clauses that can motivate or discourage the policy holder to purchase the insurance. It is not news that a lot of policy holders get to know some of the clauses in their policy document only when the event took place. Clients make the mistake of assuming that insurance executives would inform them about every single clause in the contract. It behoves the customer to appreciate the fact that insurance executives would only speak well of the part of the contract that suits the company and it is the responsibility of the customer to read every single word in the policy document before signing the document. A typical example is that some insurance policies do not provide cover for an insured motor vehicle when it is parked in a mechanic’s shop or a garage.

3. War or riots: Individuals must think twice before participating in any riot as a person or with their insured assets. Insurance policies almost all the time, even as life assurance policies, do not cover losses arising out of wars or riots. The reasons for such decisions are because losses from such events can be uncontrollable and unpredictable. Insurance is based on forecasts and predictions. Therefore, any insurance policy covering such circumstances might just be setting itself for a total run down overnight because a riot or war situation occurred over a short duration.

4. Natural disasters: Also, based on the unpredictable and uncontrollable circumstances arising out of natural disasters, most insurance companies shy away from providing policy cover that takes care of natural disasters like flooding, windstorms, tsunamis etc. It is therefore advisable for individuals to follow early warning signs to evacuate or protect themselves against natural disasters.

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