We all need insurance to prepare for the unexpected, however, we’ve all heard horror stories of insurers refusing to pay out when you need it most. 

So how can you ensure that your claims are not rejected? 

Joe Szemerei, Executive Director – Individual & Volume Business at Indwe Risk Services explains: “Sometimes claims are rejected for good reason, and it is up to the individual to ensure that they have supplied the insurer with all the relevant information and to make sure that they have taken out adequate insurance. Quite often people try to save on their monthly installment, and choose to underinsure which leaves them vulnerable when they need to claim.” 

Here are a few reasons why insurance claims are rejected by most insurance providers: 

Home and home contents insurance 

“Homeowners are particularly vulnerable to underinsurance,” Szemerei says. “Most people take out a home contents insurance policy and simply renew it every year, without taking the necessary steps to update their cover, despite updates and new purchases for their home,” he says. Make sure you insure the contents of your home for the updated replacement value. 

“Also, it is important to note that most homeowner insurance policies will only cover damage caused by unforeseen events and any claims determined as a result of poor maintenance, or neglect, are most likely to be rejected,” Szemerei emphasises. 

Similarly it is imperative that your home alarm system is in working order. If theft takes place as a result of a faulty alarm, then the claim is likely to be repudiated. Rather spend a few rand on a higher premium and on maintenance of your home and avoid nasty surprises in the long run. 

Motor insurance 

Most people know that driving under the influence of alcohol or without a valid driver’s licence, are criminal offences and your motor insurance cover would be invalidated immediately. But it is equally important to ensure that your vehicle is in a roadworthy condition. “This means checking things like the windscreen wipers and tyre tread,” Szemerei explains. Should a motorist be involved in an accident and further investigation reveals that any aspect of the vehicle was not in a fully working condition and contributed to the cause of accident, the insurance claim can be rejected on the basis of the vehicle not being in a roadworthy state. 

“It is essential that vehicle owners stick to the conditions as stipulated in their policies such as the method of security,” Szemerei says. “This means you have to park in a locked garage if you stated this in your policy.” Also, when a motor insurance policy stipulates that cover is only provided for a specific named driver, an insurance claim will only be successful if this driver was behind the wheel at the time of the incident. Should an accident occur while another person is driving the car, the claim may be rejected as the policy only covers the named driver. 

Parents often list themselves as the regular driver for their children’s cars because motorists under the age of 27 typically pay a higher premium because of their higher risk profile. “However, saving on lower premiums might mean that you lose out significantly when you need to claim, so this is not worth the risk,” Szemerei emphasises. 

It is imperative that consumers read through their policies and follow the stipulations carefully to avoid becoming an unpleasant statistics in the claim rejection list. 

Speak to your Indwe Risk Services advisors today to make sure that you are not caught off guard when you claim. Call us today on 0860 13 13 14.