Honesty is the best policy when it comes to the information you provide your insurer
An insurance news report has been issued, which has shown that dishonesty on a policy in the attempt to keep premiums low can lead to significant problems and struggles if a claim needs to be made.
Failure to disclose important information can lead a claim to be denied when it would otherwise be covered.
According to the research from a Canadian company, TD Insurance, one in five people are not being fully honest when they complete their application for a policy. They either change the truth or they leave information out on purpose. This is an increase from 2011, when 13 percent were fudging their data with their insurer.
Unfortunately, this insurance news is causing claims to go unpaid when the truth is discovered.
The same survey that determined that 20 percent of the respondents were not entirely truthful on their applications in order to save a few dollars every month has also indicated that 21 percent of respondents had cancelled a policy to try to save their money.
_________________________Random Quotes to Remember ~ “The best investment is in the tools of one’s own trade.” – Benjamin Franklin
The TD Insurance vice president, Dave Minor, explained that the best way to make sure that all claims are covered is to be very honest and provide full disclosure. In Minor’s insurance news statement, he indicated that the untrue information that is not being provided to insurers is accomplished by “stretching things and failing to disclose.” He added that “A frequent one when it comes to life and health insurance is pre-existing conditions and medication, visits to the doctor, that sort of thing.”
Insurance news shows that even if an undisclosed detail has nothing to do with the specific circumstance of the claim, it could lead it to be unpaid. For instance, if a person is struck by a car and failed to indicate on his policy application that he has diabetes, even though it had nothing to do with the event leading to the claim, it may cause it to be denied. Though this may not seem to make sense, Minor explained that the fact is that if the missing information had been disclosed in the first place, coverage might not have been offered, and therefore there still would not have been a payout available.