Common Reasons for Rejection of Overseas Travel Insurance Claim
IFFCO Tokio usually does not reject claims citing unsubstantiated reasons. However, claims are rejected if it is not as per the terms and conditions or if you do not follow the process of claims as per the policy.
Most of these reasons can be eliminated by careful study and follow the process. Some of the things that one needs to check while filing a claim are:
Check the details, exclusions, and pre-existing disease clause before purchase.
Check trip cancellation policy before the journey.
Ensure safe conduct during the trip.
Post-journey, ensure that proofs of loss are all in order and file a claim on time.
Each of these points has been discussed in the following sections.
Check the Details, Exclusions, and Pre-Existing Disease Clause before Purchase
Before purchasing the best travel insurance to the USA or other countries, you must check the details, particularly the exclusions and pre-existing disease clauses. For instance, it is essential that you are aware of the exclusions in travel insurance and must cross-check all the details before purchasing. So if you are taking part in extreme sports, you need to check the exclusions before selecting the best overseas travel insurance. Similarly, if you are being under the influence of alcohol or drugs or there are pre-existing medical conditions which are generally under exclusions from a policy, your claim is certainly going to be rejected.
Also, while filling up the application form, some of the common errors committed include gender, spelling errors (policyholder’s name), and date of arrival and departure. Such mistakes will make you ineligible for being processed.
Check Trip Cancellation Policy before Journey
Another aspect that you should keep in mind before traveling is to check whether there is a provision for trip cancellation in the online international travel insurance they choose. In case it has not been listed, then you must cross-check with the insurer.
Also, for basic plans, if this option is not available, then you must consider investing in an add-on cover that will cover trip cancellation charges. However, in certain circumstances, like terrorist attacks, there may be other exceptions that you should be aware of.
Ensure Safe Conduct during Trip
You must make a note of the fact that if anything happens to you while under the influence of alcohol, it will not be covered by the insurer. For this reason, you must be very careful and refrain from the abusive use of alcohol or drugs.
Similarly, if you lose valuables due to your own irresponsibility, like for example you leave a bag unattended and it gets stolen, then the insurer can reject the claim filed. You should keep your belongings in the locker at the hotel or bank.
Post Journey, Ensure that Proofs of Loss are all in Order and File a Claim on Time.
Another reason why insurance claims are rejected is that the claimant has not provided substantial proof. The lack of proof is a valid reason for rejecting an insurance claim.
Also, claims must be filed within a certain time frame, or else the insurer is not obligated to clear the claim. As a thumb rule, you must file a claim within 2 weeks to avoid losing out on receiving reimbursement.
There are cases where false claims are filed, which is a form of fraud. These claims are not only rejected, but the policyholders are also blacklisted.