Top 20 reasons your insurance claims get rejected

Sunday 4th August, 2013 on Business Report

PF 3Aug Pg1 Update IOL Being ignorant of the terms and conditions (Ts and Cs) of your short-term insurance policy is more likely to trip you up than a loophole in the policy itself. And you usually only get to terms with the Ts and Cs when it’s too late – when your claim has been rejected. At a recent meeting of the Acsis/Personal Finance Financial Planning Club, Dennis Jooste, the Ombudsman for Short-term Insurance, revealed the most common reasons for short-term insurers rejecting claims for motor, contents and homeowner’s cover, which in many cases involve ignorance of the Ts and Cs.

Jooste says more than half of all complaints to his office involve motor claims. Here’s why most motor claims are repudiated.

If you have an accident and your insurer finds out your wipers didn’t work or your tyres were smooth, your claim could be rejected on the basis of your car being in an unroadworthy state. Watch out for the “Failure to take care” clause, Jooste says.

If you were exceeding the speed limit at the time of an accident, your claim could be rejected. Driver not the “regular driver”.

Some policies cover the regular driver only. Others cover a named driver or any licensed driver.

Jooste says misrepresentation by policyholders in this instance is common.

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