The 2015 Protection Survey by Drewberry Insurance found that many consumers believe insurance policies pay out just 50% of the time. However, this is in stark contrast to the facts, which show insurers pay out 97.2% of the time on vital protection policies. The percentage on some policies is even higher; 99.9% of life insurance policies paid out last year. So why do consumers believe that insurers are predisposed to rejecting claims?<\/p>\n
Protection policy claims added up to \u00a33.6 billion in 2015 and helped more than 130,000 families. Over the last ten years, the percentage of successful claims has actually gone up, too, with the number of approved claims increased by 30% between 2013 and 2015. The majority of insurance companies now publish their pay-out rates too, so you can see the odds before you take out a policy.<\/p>\n
If it\u2019s mistrust of insurance companies that\u2019s prevented you from taking out a policy, it could be time to reassess.<\/p>\n
Non-disclosure
\nWhen it comes to insurers refusing to pay out, it\u2019s the usual suspects that are to blame: non-disclosure, not abiding by the T&Cs and negligence. Of these, non-disclosure is cited as the most common culprit.<\/p>\n
Non-disclosure is when a customer has failed to give an insurer all the information it needs. This can be when they take out the policy, or if something has changed over the duration of the policy that was relevant, but the policyholder chose not to declare. It has to be relatively significant \u2013 something that would have meant changes to the terms of your policy i.e. increased the premiums or meant that cover would be denied altogether. Despite this, it often happens when a customer isn\u2019t aware they need to provide the information, for example, if they are diagnosed with a health condition, but don\u2019t realise they need to declare it on an existing policy.<\/p>\n
How to up your chances
\nHow can you increase the chance that your claim will be approved?<\/p>\n
\u2013 Don\u2019t just opt for the cheapest policy, as it\u2019s important to ensure that you get adequate cover, too.<\/p>\n
\u2013 Always read the small print \u2013 read the documentation to check what\u2019s covered.<\/p>\n
\u2013 Keep receipts \u2013 these could help you when you come to claim. Photographs can also go a long way to help prove that you own an item if you\u2019re burgled, for example.<\/p>\n
<\/p>\n
With insurance companies, there\u2019s no such thing as a white lie, so make sure that you don\u2019t try to squeeze more from your policy than you deserve, as you could end up empty-handed. Dishonesty is cited by\u00a0Moneywise<\/em>\u00a0as the most common reason car insurance claims are rejected.<\/p>\n If your claim is rejected, then you can approach the Financial Ombudsman to help you handle your complaint and independently asses your query. If the Financial Ombudsman decides your claim was unfairly rejected then it has the power to get them to explain why,\u00a0apologise and even potentially pay compensation or take appropriate action.<\/p>\n Don\u2019t forget that insurers are the good guys. Although consumers have a negative opinion of insurers, often having your claim approved is as simple as reading through the paperwork and making sure you abide by the terms of your policy.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" The 2015 Protection Survey by Drewberry Insurance found that many consumers believe insurance policies pay out just 50% of the time. However, this is in stark contrast to the facts, which show insurers pay out 97.2% of the time on vital protection policies. The percentage…<\/p>\n","protected":false},"author":447,"featured_media":23667,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[],"class_list":["post-23610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial","category-personal"],"yoast_head":"\n\n
\nMake your claim quickly while the details are still fresh in your mind. In many contracts, you\u2019ll find there\u2019s a stipulated time window within which you must claim. In addition, if an item is stolen, then you need to report this to the police within 24 hours or your claim will likely be rejected.<\/li>\n
\nIf you\u2019re making a claim then it can help to put together information for your insurer that backs up your claim. This could include photographs of the damage, for example, or records you\u2019ve been keeping in relation to the claim.<\/li>\n
\nIt\u2019s likely that your insurer has a preferred way of doing things. With emergency home repairs, for example, it\u2019s likely that you will need to call the insurer before you call a tradesperson. Some insurers will even require that you use a specific tradesperson from an approved list.<\/li>\n
\nKeep track of all the paperwork and phone calls so that you can refer to them later if needs are. Ask the insurer for a timescale and follow up with them if they take longer.<\/li>\n<\/ol>\nWhat if your claim is rejected?<\/h2>\n