If you have a rejected or delayed claim, do not immediately give up hope and do not lose your composure. Your rejection could be for any number of reasons.
The insurance company could have made a mistake, or you may have made a misstep yourself while filling out the forms or completing the process. You could lack coverage for your loss or, in some cases, the insurance company could be attempting to confuse or intimidate you into abandoning or invalidating the benefits you deserve.
Insurance business practices
Many insurance companies are just that — companies. They are in the business of protecting people against unforeseen losses, but they are also in business to make money. When you make a claim, you cut into the profits they might earn.
Reputable insurance companies account for benefits payments. They would only sell you a policy that, when combined with all of the other policyholders’ contributions, provided three essential elements:
- Coverage of operating costs for the insurer
- A small profit margin
- Funding for payments if you or other policyholders experience a loss
If this is your situation, your rejection would probably stem from an honest error. An investigation would most likely uncover the source and rectify the issue.
Gray areas and bad-faith companies
Whether by incompetence or by intent, some companies do not make the correct calculations when selling you their policies. Some might oversell underpriced policies for high-risk situations. Others might deny claims by default, hoping that you give up before you get the money you deserve. They might ask for information to which they are not entitled, claim non-existent errors or pursue any number of borderline tactics.
Regardless of the validity of the rejection, the chances are that the format will seem official. Do not let the tone of your rejection dissuade you. Whether by internal company processes or other means, you may still have an option to pursue the benefits you have been paying for. Please continue on our main website for more information.