When is an insurance company allowed to deny a claim based on late reporting?

An insurance company is permitted to deny a claim based on late reporting when the policyholder fails to notify the insurer within a reasonable time frame. This principle is rooted in the idea that timely reporting of claims is essential for the insurance company to conduct an adequate investigation and evaluate the claim accurately. If the policyholder delays reporting the incident, it may hinder the insurance company's ability to gather necessary evidence, witness statements, or other critical information relevant to the claim.

The requirement for reasonable notice is typically outlined in the policy's terms and conditions, emphasizing the importance of prompt communication in the claims process. By ensuring that claims are reported in a timely manner, both the insurer and the insured can work together effectively to resolve the matter fairly and efficiently. This helps to maintain the integrity of the insurance system and prevents potential fraud or misrepresentation that can arise from delayed reporting.