Why might your insurance claim be rejected?
There are several reasons why a claim could be rejected, fairly or otherwise. Some are highlighted below.
You might have given incomplete or inaccurate details during your claim, intentionally or by mistake. For example, how something happened or got damaged.
The insurer thinks you didn’t take ‘reasonable care'
Most policies include a ‘reasonable care’ or ‘duty of care’ clause that requires you to take steps to prevent a claim from arising. For example, if you left your valuables on display in your car or your mobile phone on the bus, your insurer might see this as a reason to contest your claim.
Omissions or inaccuracies in your insurance application
The insurer can reject your claim if they have reason to believe you didn’t take reasonable care to answer all the questions on the application truthfully and accurately. A common example is failure to disclose a pre-existing medical condition.
Technical ‘sticking points'
Insurers can sometimes find contentious ‘small print’ reasons to challenge your claim. For example, they might contest whether a lost or stolen item was used for personal or business purposes. If it’s the latter, it might not be covered by the policy.
The proper claims process wasn’t followed
Insurers often expect customers to go exactly by the letter and might use evidence of you not following their claims process closely enough as justification for turning it down.
The insurer insists it only has to pay part of your claim
This can happen, for example, if your policy doesn’t give you enough insurance to cover all your losses. You’ll have to pay an excess if the insurer believes you’ve overstated the value of your claim.
If you’re not happy with the reasons given by the insurance company for rejecting your claim, you have a right to complain.