Remedies Available When Your Insurance Claim is Rejected
Have you been in a situation where having submitted your insurance claim to your insurer, you subsequently receive a letter from your insurer telling you that the claim is declined (for whatever grounds) or your insurer giving you a less than satisfactory compensation? Or perhaps you have heard of such experiences by someone you know?
Insurance claims rejection (also known as repudiation) is not uncommon. Far more common would be a less than satisfactory compensation offered for the insurance claim. Faced with those scenarios, what remedies are available to the insured / policyholder?
Demand full explanation from Insurance Agent or Broker / Claims Department
If you have an insurance agent or broker who is servicing your account, get their assistance on this matter. Ask them to explain to you why the claim was repudiated. Insurers in Malaysia are required to state their reason/s for a repudiation and if you are unsure of the insurance terms used, your insurance agent might be able to help you. Alternatively, you should write to the Insurer for further explanation on the repudiation or to justify their amount offered for the claim. If the amount offered is not satisfactory, you are at liberty to appeal for a higher amount provided you are able to give good reasons for the same. The Insurer is obliged to give you a written reply upon your written appeal to the Manager / Senior Manager of the Claims Department. Read more