When you have insurance, you expect the insurance company to pay for the damages or the sudden expenses. But what do you do when your claim is denied or rejected by the insurance company? Find out what you can do when your claim is rejected.

Many Malaysian will make an insurance claim for a car accident.

When you claim, you expect the insurance company to pay

For example, when you are involved in a car accident, you would notify the insurance company about it. This is called making a claim with the insurance company. After the claim, you expect that the insurance company would pay for the repair cost so that you are not burdened with the sudden unexpected cost. But what do you do, when you have made a claim, and then the insurance company repudiates your claim? 

“Repudiate” is insurance language for denying your claim, which means that the insurance company will not pay for any cost. In other cases, the company might inform you that they will not pay the full price. For example, when your car is stolen, the insurance company is not paying the total value of the car, but a lower amount. Here are four things you can do when your claim is denied.

4 solutions to make your claim successful

1. Ask your insurance/takaful agent about the claim rejection

Talk to your agent and understand the reason why the insurance company has rejected your claim. May be some documents were missing or wrongly provided. It is vital to buy your insurance from a licensed and professional agent because the agent will have many years of experience in making a correct claim. 

Also, your agent will help you to make sure that all information is complete when filing a claim. An incomplete claim or wrong documents can delay the whole process, and you will have to wait longer until your claim is settled. 

An insurance agent can be the first person to consult.

2. Post your denied claim in online expert forum

Take your rejected claim and ask the online community. A trendy forum for all kinds of questions is Low Yat forum, where people post all sorts of issues. However, in Low Yat forum, you do not know who is answering and how good the expertise is.

A more specific webpage to search for information is Asklegal.my . You can find all sorts of information about Malaysian law. Unfortunately, you will not be able to get specific help for your rejected insurance claim. For this kind of service, you can use webpages like Kamibantu . The webpage focuses on insurance and takaful only, and the people that respond to questions are licensed, agents or insurance professionals. Kamibantu also offers premium questions that offer faster reponse from expert and privacy. Premium questions are not visible to the public, so that you can freely post and share your information online. 

At kamibantu.com.my you can ask free and premium questions.

3. Take your denied claim to a claims advisory company

Your best alternative to a costly lawyer is taking your denied claim to a claims advisory company. Claims advisory company employ ex-employee from big insurance companies who now help Malaysians get their claim approved. One such company is Par Biz Advisory (PAR Biz Advisory Sdn. Bhd). Par Biz Claims advisory companies offer their service as “No cure, no pay”. If they are not able to help you, you do not pay anything. 

If the company can help you, then the claims advisory will take 10% of the winnings. For example, if your claim was for RM 10,000 and the claims advisory company can help you. Then you get RM 9,000 paid out, and RM 1,000 is the success fee that advisory company get. This is pretty good, considering that you started off with RM0 because the insurance company denied your claim.

Through Kamibantu has a partnership with PAR Biz Advisory Sdn. Bhd. You can get a free premium question at Kamibantu.com.my + free review through Par Biz Advisoryon at the same time by using this form. 

Malaysian company Par Biz Advisory provides help under “No cure, no pay” condition. 

4. Talk to a specialized lawyer

Last but not least, you can get a legal review of your rejected case from a lawyer. When approaching a lawyer, make sure that you contact the right lawyer. For example, for a car accident talk to a lawyer that concentrates in traffic law. If you have a claim for a fire in your house, speak to a lawyer that specializes in property insurance claims. Many lawyers will take a small fee for an initial consultation. The cost can range between RM200-300. If they are willing to accept your case, then additional lawyer charges and court fees need to be paid. 

You can find a lawyer near you from the webpage of the Malaysian Bar.

Find a specialised lawyer in Malaysia on the Malaysian Bar webpage.

This summarizes our brief article on what you can do when your insurance claim is denied. In summary, you have the following options.

What can you do when your claim is rejected?

1. Ask your insurance/takaful agent about the claim rejection
2. Post your denied claim in online expert forum
3. Take your denied claim to a claims advisory company
4. Talk to a specialized lawyer

Do you have experience with denied insurance claims or other suggestions? Please share your thoughts and ideas with us below.

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