When drafting a denial letter for an insurance claim, it's essential to maintain clarity and politeness while conveying the decision. Clearly state the reasons for denial based on the terms and conditions of the policy. Provide the necessary information such as the policy ID, the requested amount, and the purpose for which the claim was made. Offer assistance for any queries the recipient may have and express regret for the inconvenience caused.
Sample Letter of Denial for Demand of Insurance Claim
To,
_________ (Mention Name)
_________ (Mention Address)
Date: __/__/_____ (Mention Date)
Subject: Denial of Insurance Claim
Respected Sir/Madam,
This letter is in the name of ___________ (receiver’s name) holding insurance policy ______________ (mention policy ID number)
As per the recent request letter that we have received from your end, you are looking forward to reimbursing an amount of _________________ (mention amount) for ________________ (mention purpose). This is to inform your post viewing the invoice/ bill/ supporting documents that were deposited by you, we state that our company cannot reimburse the amount following the terms and conditions of the policy ____________ (details of the conditions).
We apologize for the same. In case, you have any queries, you may respond to this letter or contact our customer care.
Regards,
_________ (Your name),
_________ (Designation),
_________ (Contact details)
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Deepanshu Thakral 
Rahul Sharma