Life Insurance Claim Rejection: The Most Common Mistakes Made by Nominees

"We paid every premium. Why was our claim rejected?"

 "The insurer keeps delaying. My child’s school fees are pending"

 "That claim settlement means the food on our table and medicines for the elderly."

If these sound familiar, you’re not alone, and we are sorry if you had to search for this with shaking fingers. Across India, countless grieving families face the same nightmare. A life insurance claim rejection…

A life insurance claim is more often than not a heavy moment when financial responsibilities bear down on the already crushing grief of a loss. But too often, and unfortunately too late, nominees discover that a missing document, one overlooked detail, one small mistake, can turn into a devastating claim rejection.

Let’s walk through the 10 most common mistakes nominees make so you can avoid them. And if you’ve already made them, how you can handle them with Bima Seva Kendra.

1. The 10 Most Common Mistakes Nominees Make

1. Submitting Incomplete or Incorrect Documents

Even a missing hospital seal or mismatched date can freeze your claim indefinitely.

Documents are the base of your claim and the evidence on which the validity of your claim is investigated. Therefore, if a mismatch is found, even if unintentional, it can raise red flags for the insurance company.

2. Delay in Intimating the Insurer

A late claim intimation often raises red flags and leads to either delay in claim process or claim rejection. In every policy, a timeframe for intimation is mentioned, within which a policyholder or claimant must reach out to the insurer. Emergencies can definitely happen, but we encourage you to make the call or ensure someone can make it for you to avoid insurance claim-related issues.

3. Ignoring Policy Exclusions

As much as people love the thrill of adrenaline, death during high-risk activities, or undisclosed conditions can void coverage. And as unfortunate as it is, even suicide within the first policy year may be an exclusion. We know it feels personal and unjust, for we never know when we might lose a loved one to their mental health, but the exclusions often explicitly mention these clauses as scenarios that lead to an outright claim rejection.

4. Premium Lapses

When a policyholder misses the payment of premiums as well as the grace period mentioned in the policy, they face a lapsed insurance policy. This lapsed insurance policy—sometimes unknown to the nominee—becomes a frequent cause of claim rejection.

5. Believing the Insurer’s Word Alone

Relying solely on “it’s under process” calls with no written confirmation traps nominees in endless waiting.

6. Assuming Nominee Details Are Automatically Updated

Your nominee will always be the person YOU  put down in the latest renewal or in the initial policy, which then remains unchanged till YOU do so. If nominee information in the policy is outdated or incorrect, insurers may reject claims outright. 

7. Lack of Medical Evidence

If the insurer feels the medical history provided doesn’t justify the treatment or cause of death, the claim is stalled. Lost receipts, no hospital case history, or missing communication trails weaken your claim position.

8. Fighting Alone Against Complex Processes

The biggest mistake? Believing that persistence alone can beat insurance bureaucracy. Without claim rejection services, many nominees simply give up.

2. How Bima Seva Kendra Turns Problems into Solutions

At BSK, we live by the principle “Seva Parmo Dharm”—service is our highest duty. With over 100 years of combined experience, we’ve seen every possible tactic insurers use to delay or deny claims. More importantly, we know how to fight them.

Here’s a clear snapshot of your problems vs. our solutions:

Your Problem	Our Solution (BSK’s Expertise)
Incomplete or incorrect documents	We audit and correct every submission, ensuring your file meets insurer and legal requirements.
Delay in intimation due to emergencies	We draft strong representations explaining valid reasons for the delay and fight for your rightful payout.
Unfair/Vague Policy exclusions	We review the fine print, challenge unfair exclusions, and highlight precedents to support your claim.
Premium lapse	If the lapse was due to mis-selling or insurer fault, we help in reinstating lapsed insurance policy or recover benefits.
Documentation issues	Our legal experts provide conclusion calls to help align medical and claim records to close technical gaps and make sure to point out any inconsistencies before you make the claim request
“It’s under process” runaround	We demand written status updates, escalate to grievance officers, and push claims forward.
Lack of medical evidence	We help figure out the missing pieces and build a strong evidence base for claim settlement approval.
Fighting insurers alone	With BSK by your side, you don’t face insurers alone—we handle the technical and legal fight for you.

 

When it comes to claim rejection-related issues, expertise is everything. Insurers thrive on technical loopholes; families suffer in silence.

We believe silence is not an option. With Bima Seva Kendra’s claim rejection services, you gain:

• • A team that knows insurer tactics inside out.
• • Legal experts who can draft notices that insurers cannot ignore.
• • A legacy of service rooted in Seva Parmo Dharm. 

Your loved one paid for protection. You deserve to receive it.

Final Word

A rejected life insurance claim is a heavy burden, but one you need not carry alone. The mistakes nominees make are common—but with the right support, they’re also fixable.

If you’re facing a delay in claim process, a stalled payout, short settlement, or outright claim rejection, remember: you don’t have to carry the burden alone. Bima Seva Kendra exists to stand with policyholders, challenge insurers, and make sure justice is delivered.

Because in your hardest moments, service isn’t just our duty—it’s our promise.

 

---