Each insurance company has certain policies and clauses that can be both beneficial and negative for the insured. For this reason, when contracting an insurance policy, it is of vital importance that the different clauses and specifications by which they can decline to pay compensation are reviewed very carefully.
At the time of wanting to contract an insurance policy, certain questions usually exist or come up about the doubts of it. Many people indicate that it is a waste of money to take out an insurance policy; this is because for many people they have not been able to collect their compensation, either due to an error or cancellation of the policy.
But, is it legal for an insurer to deny or decline the payment of insurance compensation to its beneficiary?
The insurance policies have broad and specific coverage according to the requirement of the insured; however, they also have a series of requirements and clauses that are unbreakable for the insured. In this way, if the insured fails to comply with one of them, his policy coverage may be affected.
Why can I be denied compensation from my insurance policy?
Well, the reasons for the insurance company to indicate a denial of compensation payment are many; and as indicated, it will depend on the different clauses that the insurance policy has. One of the main causes that can occur is:
- Death by suicide
- Error in the documentation delivered to the insurer
- Policy sold
- Play some unspecified risky sport
- Belonging to armed groups or being in an armed conflict (fights, wars)
These are some of the reasons why insurance companies deny payment of compensation to the beneficiary. That is why it is recommended to keep everything out of the way and up to date. A good insurance agent will allow you to be aware of everything that can or happens with your insurance policy.