5 Dirty Little Tactics Insurers Use to Deny Legitimate Claims
Let us face the truth! The insurance companies earn tons of profits very easily. How? Just by denying or paying less of insurance premium. Not surprisingly, the companies even deny the legitimate insurance amount claimed by the policyholders. Insurance companies have layers of pretexts to deny the insurance claims made upon them under the insurance policies. Increasing profits is their aim and they do it very well. In fact, it is not false to say that insurance companies thrive or exist not by providing excellent customer service, but by denying tons of insurance claims every year.
Taking an insurance policy is a pure gamble for the insured. The insured bet against themselves. They bet that they will keep on paying lofty premiums every month or year as per the terms of the policy and will do everything that they can to protect their life and property against damage. The insurer too bet that none of the unfortunate situation arises in the life or to the property of the insured and in case anything happens, the insurance company will not pay the insurance claim, rather it will not even make an effort to settle the claim. Honestly, the insurance companies are expert in proving any of the claims to be invalid.
Here are the tactics that insurance companies use to deny the claims:
- Plain Denial
The first and foremost tactic is to deny any of the claims as and when it arises. Insurance companies know that only a handful of customers make a re-attempt to ask for claims. Those who make a serious attempt to recover the claim are paid their dues. The premiums paid by rest are a part of the company’s profits.
- Insufficient settlements
Stress on customers is the reason for acceptance of insufficient insurance amount as claims. An unfortunate event causes lots of stress and worry on the mind of the claimant and the situation makes him whole heartedly accept whatever money comes in. The insurance companies take benefit of the stressful situation and settle the claim by paying a much less amount in comparison to the actual estimated loss that falls due to the company.
- Use twist of words
Insurance companies use the customer’s words to their advantage. The companies always look for the words which can be used as an excuse to deny the claims. Most of the companies make sure to record each and every word, which the insured speak at the time of making a claim. The companies later minutely scrutinize the words and pick out phrases which work in their favor.
- Late settlement
Late or delayed settlement of claims is equivalent to no claims. Insurance is a sticky and complicated spider web. To get anything out of this web is certainly not an easy task.
- Complicated claim filing process by Insurance company
An insurance company can make the procedure of filing a claim complicated enough which leaves the customers angry and frustrated and out of frustration, customers leave the process in the middle. Leaving the process means leaving the claims.
If you do a research on insurance claims, you will come across numerous stories of policyholders who were unduly denied the payment. You should be cautious while looking forward to buy any of the insurance policies. Being cautious you will enter a healthy and promising insurance contract.