Causes of Insurance Claim Denied

Life Insurance Claim Denied by Insurance Company. Often we hear about this, so that not a few people who become antipathy to the insurance company, because they do not want the incident be experienced personally.

Hope someone buys an insurance policy is in order to receive the benefits of the insurance product purchased when needed, thus avoiding his or her family from economic difficulties. However, it is not uncommon life insurance company refuses to pay for insurance claims submitted.

Here is three most common reasons for refusing a claim the insurance company life insurance types:

1. Suicide, If the insured dies as a result of suicide, while still in kontestabel period (one or two years since the policy was published), then the insurance company has the right to refuse to pay the sum insured.

2. Injuring Yourself, At accidental death insurance, there is usually a clause that excludes accidents caused by the act of "self-mutilation". The insurance company can refusing claims accident deaths caused by illegal racing on the highway by reason that it was an act of "self-mutilation".

3. Material Misrepresentations, is an honest statement issued at the time of application submission process (underwriting), which the insurance company refusing application of coverage and no policy issue. Misrepresentations can be a lie statement regarding medical history, age, occupation, hobbies of the prospective insured. As with suicide, misrepresentation can only be used as a reason for rejection of the claim when it occurs during kontestabel and only in relation to the death. For example, if the insured does not claim to have a dangerous hobby at the time of application but it later died while doing hobbies associated with the dangerous hobby.