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6 Ways to Avoid Life Insurance Claim Rejection in the UAE

By PolicyBazaar
  | Published: 29 August 2020 | Last Updated On: 08 February 2021

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Life insurance is an absolute must for people looking forward to safeguarding their family and loved ones against the strokes the uncertainty on the trail of life. With the right life insurance plan in place, you can ensure that your family is financially secure and safe during the phases of financial turmoil.

Very often small mistakes made by the insured result in rejection of the life insurance claim which eventually can lead to a series of problems for the family members of the insured. Getting life insurance claims approved and disbursed from the insurer’s end is equivalent to a battle as there is a plethora of clauses and conditions that need to be fulfilled.

In case the policyholder is unable to fulfill even a single condition there is a high probability that the insurance claim will be rejected by the insurer. If you are wondering what are the common mistakes that lead to rejection of life insurance claims and how can one avoid them you have landed at the right place. In this thread, we will be discussing some of the major reasons that lead to the rejection of life insurance claims along with crucial tips and tricks to avoid them.

Common Reasons for Claim Rejection

Here’s a quick rundown on some of the most common reasons that lead to the rejection of life insurance claims in the UAE-

1. Incorrect Information in the Insurance Application

It is extremely vital for insurance seekers to provide the correct information in the life insurance application form as providing wrong information can later lead to rejection of the claim. By providing the right information one might end up paying higher premiums but it will ensure that their family members receive the death benefit when they need it the most.

2. Hiding Medical History from the Provider

Disclosure of medical history is mandatory in the application form to avoid any hassle later at the time of claim processing. Apart from medical histories such as details of surgery and ailments, it is vital to disclose lifestyle habits such as smoking and drinking as they impact the life expectancy of an individual thereby the premium of the policy. Providing an accurate medical history will ensure that the claim is not rejected.

3. Not Updating the Nominee Details

After the demise of the policyholder, the nominee of the insurance policy receives the death benefit. It is important for policyholders to update the information of the nominee in the application form to avoid rejection. The address, contact information, age, etc. of the nominee should be filled in the application form. Failure to update the information will increase the likelihood of claim rejection.

4. Not Disclosing Additional Insurance Policies

While purchasing any insurance plan the provider enquires about existing insurance policies. It is important for the policyholder to disclose and provide all correct information about existing life insurance policies to avoid any chances of claim rejection. Very often insurance seekers hide information about their existing policies as they find it a tedious task to find old documents, doing this can increase the probability of claim rejection which can land your loved ones into serious trouble.

Points to Ponder to Prevent Claim Rejection

Some of the important points to ponder to prevent life insurance claim rejection in the UAE are as follows-

1. Provide correct information in the Application form

The first and foremost thing one can do to prevent rejection of life insurance claims in the UAE is to provide the correct information in the application. If you hide any bit of information related to your health or occupation or anything that is related to the life insurance policy it can have a serious impact at the time of claim processing.

2. Pay Your Premiums Timely

The second most important point that is to be kept in consideration to avoid life insurance claim rejection is paying premiums on time. When a policyholder pays their premiums on the time it ensures that your policy is active and the claim will be paid by the provider at the time of demise or disability of the policyholder.

When a policyholder misses out on making his/her life insurance premium payment the policy lapses which means that the party is no longer covered under the plan and therefore no death benefit will be paid in case of the demise of the policyholder. Therefore, to ensure that your family members receive the death benefit it is vital to make the payment of life insurance premiums on time.

3. Updating Nominee Information

As mentioned earlier one of the most common reasons behind the rejection of life insurance claims in the UAE is not updating the nominee information. In order to make sure that your claim is not rejected it is important to update the nominee information in the policy papers. If you are single, you can make your parents the nominee of the policy however, if you are married you can make your spouse or children the nominee of the insurance policy which will prevent rejection of life insurance claim.

4. Timely File the Insurance Claim

Another important point to be kept in consideration which is vital for the prevention of claim rejection is filing the insurance claim on time. Usually in case of medical emergencies filing the life insurance claim is the last thing that strikes your mind. However, insurance companies have a time frame in which the claim should be submitted. The period varies from 30 days to 90 days for different providers. If the nominee is unable to file the claim on the time it will lead to claim rejection.

5. Medical Examinations

Most of the insurance companies carry out medical examinations to get an idea of the applicant’s medical history and conditions. These medical examinations include a series of different medical procedures that allow the provider to understand the medical condition of the applicant better. Undergoing medical examination will help in the early detection of ailments which will help you in treating them as soon as possible. Furthermore, since the provider will be aware of your medical condition it will reduce the chances of claim rejection.

In a Nutshell

It is crucial that the policyholder is aware of all the developments with the insurer. Staying updated about the clauses and conditions will make sure that the claim is accepted at the time of processing and your loved ones receive the money when they need it the most.