What are the common reasons for life insurance claim denials?
One common reason for life insurance claim denials is misrepresentation or non-disclosure of material information during the application process. If the policyholder fails to disclose pre-existing medical conditions, risky hobbies, or other pertinent details, the insurance company may argue that the policy was obtained under misrepresentation and deny the claim.
Another frequent cause of claim denial is the lapse of the policy due to non-payment of premiums. If the policyholder misses premium payments and the policy lapses, the insurance company is no longer obligated to pay out the death benefit, even if the policyholder passes away shortly after the lapse.
Suicide within the contestability period is also a common reason for denial. Most life insurance policies include a clause that excludes coverage if the policyholder commits suicide within a specified period, typically the first two years of the policy. If this occurs, the insurer may deny the claim.
Claims may also be denied if the death occurs due to illegal activities or hazardous behaviour. If the policyholder dies while engaging in illegal acts or dangerous activities not disclosed in the application, the insurer may refuse to pay out the benefit.
How does Kotak Law assist clients in challenging denied life insurance claims?
Kotak Law represents clients whose life insurance claims have been denied. One of the primary ways they help is by conducting a thorough review of the denial letter and the insurance policy. This helps to identify any inconsistencies or errors in the denial reasoning provided by the insurance company. By understanding the specific grounds for denial, Kotak Law can formulate a targeted strategy to challenge it effectively.
Another crucial service provided by Kotak Law is gathering and organizing all necessary documentation and evidence to support the claim. This may include medical records, witness statements, and any other pertinent information that can strengthen the case. Their expertise ensures that all relevant documents are presented in a compelling manner, increasing the likelihood success.
Kotak Law also offers expert negotiation skills to deal directly with insurance companies. Their lawyers are experienced in negotiating settlements and can often resolve disputes without the need for lengthy litigation. This can save clients both time and money, while still achieving a favourable outcome.
In cases where negotiation does not lead to a satisfactory resolution, Kotak Law is prepared to take the matter to court. They provide robust legal representation, leveraging their extensive knowledge of insurance law to argue the case before a judge. Their litigation experience ensures that clients have the best possible chance of overturning a denied claim.
Finally, Kotak Law operates on a contingency fee basis, meaning clients do not have to pay any upfront legal fees. They only get paid if they successfully recover the denied claim. This approach makes legal assistance accessible to a broader range of clients, ensuring that everyone has the opportunity to challenge an unjust denial.
Call the lawyers at Kotak Law today if you or a loved one is a beneficiary of a life insurance policy and the insurer is refusing to pay.
