Insurance companies cannot reject a claim on delayed or late intimation of death or incident or loss as a reason.
Insurance Regulatory and development authority (IRDA), India through its circular dated 20.09.2011 to all life and non life insurers says that claim on delayed or late intimation of loss cannot be rejected purely on technical grounds in mechanical fashion will result in customer dissatisfaction and they might loose confidence in the industry.
If the reason on late intimation is genuine, then the claim should be accepted. It also advised the companies to take utmost care while processing the claim.
So the policy holder can complain about such rejections if there is no suspicious intention for delayed intimation.