Home / Insurance / News /  This is when insurers may reject Covid health insurance claim

There is a great spurt in claims across the industry owing to the ensuing Covid-19 pandemic. Though insurers have expedited claims and most of these are settled as well. Due to coronavirus, various insurance policies covering COVID-19 have recently been launched.

Depending on the type of policy, policyholders can make insurance claims either through the cashless mode or the reimbursement. In the latter case, the policyholder needs to pay for the expenses and get the expenses reimbursed from the insurer by submitting the claim form.

Although there are multiple reasons related to the rejection of covid health insurance policy claims. Parag Raja, Managing Director and Chief Executive Officer, Bharti AXA Life Insurance lists out the main reasons why a COVID claim may be disapproved:

Inactive/Lapsed Policy

In order to keep a policy active, a policyholder needs to pay a timely premium. Failing to pay premiums on a timely basis leads to a policy lapse. If death happens in this case then the life insurance company may deny the claim

Non-disclosure of pre-existing diseases

If the policyholder has a serious pre-existing illness for e.g., the insured was suffering from cancer prior to policy issuance and the same was not disclosed while buying the policy, insurers may disapprove to honour the claim.

Many insurance firms have said they are primarily trying and settle all genuine claims. If an insurance firm has rejected a policy claim on unclear grounds, individuals can raise a complaint.

Meanwhile, India recorded the highest single-day Covid-19 fatalities with 6,148 new deaths in the last 24 hours. Although, the daily spike of coronavirus cases remained below the 1 lakh mark for the third consecutive day as only 94,052 new infections were recorded during a 24-hour period, according to the Union Health Ministry data updated today.

Sangeeta Ojha
A business media enthusiast. Writes on personal finance, banking and real estate.
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