Travel insurance claims often get rejected and it is important for a policyholder to make sure to know all the circumstances that would lead to claim rejections if they file a claim on lost or damaged goods while traveling.
Traveling to exotic places is fun, but what if one inauspicious incident turns your much-awaited journey into a nightmare? On top of that, when you get back home, your travel insurance claim also gets rejected by your insurer. A mere thought of this situation terrifies people, but you must know this very fact that there are many individuals who have actually experienced this situation in real kudos to their lack of information and unwise moves.
To help you avoid getting into such difficulties, here's a list of five factors due to which your insurance company can reject your travel insurance claim:
#1 Drinking Can Cost You: Vacation seems like a perfect time to have a party and get high. However, this can be used against your claim too. For example, if any of your belonging, say the passport or perhaps the luggage goes missing while you are drunk or are under the influence of alcohol, your claim will be denied automatically. Insurance companies certain do not restrict you to booze on vacation, but they equally don’t believe in paying for the losses that have incurred due to your carelessness. So the best way to avoid such situation is to keep your belongings safely if you plan to drink excessively.
#2 Carrying Valuable Items with you on a trip: Your travel insurance claim can also be denied if the insurance company gets to know that proper care wasn't taken for your valuable belongings. Oftentimes, people hide expensive jewelry and gadgets in their hotel room while going out to explore the new country. But this is not a good idea to protect your belongings. Insurance companies can deny this claim saying you left them where they can be found easily. Not carrying expensive things on the trip is rather the smartest way to stay away from such claim rejection.
#3 Not getting a police statement on time: Most insurers want you to follow a certain procedure when something is stolen, and getting a police statement on time is one of those things. Many companies demand a policy statement that has been made within 24 hours of the robbery. So as soon as you find that your belongings are stolen, you should call the police and start the process. Always keep a copy of your policy while traveling as it contains all the important deadlines.
#4 Not knowing your policy well: In India, it is commonly seen that travel policies are bought through the reference of an agent, as a result of which many policyholders don’t even know what their policy covers for. This can further lead to claim rejections simply because your travel policy does not cover the items you have claimed for. The sure-shot way to save you from such situation is to know about your policy well- the loopholes, clauses, its coverage, and exclusions too.
#5 Exaggerating your losses: Dramatizing your losses and showing it as a major incident to your insurance company can also reject your claim. Also, if your insurers get to know about it, you are more likely to be charged in forgery and could end up paying huge fines instead.