What happens if a claim is made after the limitations period specified in a policy?

When a claim is made after the limitations period specified in an insurance policy, the claim is generally considered invalid and cannot be pursued. Insurance policies include a specific time frame during which claims must be reported and filed to ensure eligibility for coverage. This period is established to encourage prompt reporting and to allow the insurer to investigate and manage claims effectively.

If a policyholder attempts to file a claim after this stipulated period, the insurer has the right to deny the claim based on the expiration of the limitations period. It helps protect the insurer from issues such as fading memories, lost evidence, or difficulties in verifying the validity of the claim due to the passage of time. This is a standard practice in insurance contracts, ensuring both parties have clarity and deadlines for claims and liabilities.