Your shop involves a heavy investment, and therefore, it is a good move that you have decided to purchase a shopkeeper’s insurance policy. The policy would offer you coverage against all the possible perils, like fire, burglary, earthquake, etc.; which might arise. Overall, shopkeepers’ insurance policy plays a crucial role by offering protection to your property and safeguarding your interest.
While shopkeeper’s insurance policy plays an important role by offering you coverage, there are certain situations when the insurer can refuse to settle your claim.
To avoid the financial and emotional stress, which can arise due to rejection of your shopkeeper’s insurance claim, it is essential to know about those circumstances when your insurance claim can get rejected
- Incorrect Insurance proposal form
The most common mistake which most of the people make is to allow their agents to fill the insurance form on their behalf. While, corporate insurance advisors like SecureNow have experts who are adept in handling your insurance queries, the same expertise you can’t expect from agents who would not only ‘force’ you to buy a particular insurance policy but would also enter the wrong details in the form to meet their sales target.If the shopkeeper’s insurance company finds that you have not given complete information and withheld material details, it may reject your policy on the ground of non-disclosure of information. Hence, either you can take the help of SecureNow for filling the proposal form or do it on your own.
- Concealment of information
Information which you give at the time of filling the insurance proposal form is used by the insurance company to fix the premiums. It can include the information about your shop and equipments, etc. You should make sure that you do not conceal any of this crucial information as it might give reasons to the insurer to reject your claim.
- Policy lapses
In any case, insurers will settle only those claims in which policies are active. So, it is imperative that you pay the premium on time and keep it in active mode. In any case, insurers will not settle a claim when your shopkeeper’s insurance policy has lapsed due to non-payment of premium. Should you miss paying the premium, make sure to pay it during the grace period to avoid a policy lapse. A claim which is made even a day after the policy lapses would not be considered by the shopkeeper’s insurance company.
- Claim is for Pre-existing damages
Claims which are made on account of pre-existing damages are not covered by the shopkeeper’s insurance policy in most of the cases. Pre-existing damages are those damages which happened prior to the issuance of the insurance policy.
- Claim is lower than Excess
In the insurance sector, excess or deductible is the amount that a policyholder is required to pay at the time of claim before the insurer settles the remaining claim amount. In case, the total claim amount is less than the excess, the shopkeeper’s insurance company will reject the claim, and you would have to pay the amount from your pocket.
Further, shopkeeper’s insurance company can reject your claim, if it is related to=
- Manufacturing defects in mechanical, electrical or electronic items
- Shop which is of kutcha construction
- War and allied perils
- Nuclear radiation and related causes
In addition, it is important to note that if a policyholder makes unusual delay in filing the claim, then it can raise suspicion and delay the entire process of claim settlement. To ensure a smooth claim process, most insurance companies offer you the services of claim officer.
Moreover, insurance advisors like SecureNow can assist you in the claim process. At the time of loss, you would only need to inform SecureNow, who would contact the insurer and also submit necessary details and documents on your behalf to ensure the hassle-free claim settlement.
Remember, you are buying a shopkeeper’s insurance policy to get coverage in case any unfortunate event strikes, so it is essential to avoid all those mistakes which otherwise could lead to rejection of your claim.