FOUR STEPS TO ACHIEVING “TIMELY SETTLEMENT”
(Dec. 6, 2018) — The main objective of purchasing a life insurance plan is to provide financial security to your loved ones. However, while zeroing in on a life insurance plan there are various important aspects that should be taken into consideration. One of the important aspects is to check the claim settlement ratio of the insurance company in order to ensure the timely settlement of the valid claim. Further, in this article, we will elaborately discuss the important things to consider about life insurance claim process.
Prior to informing the insurance company, the claimant/beneficiary should check some important facts:
- The life insurance policy should be enforced and all the premiums should be paid.
- Policy exclusion should be taken into consideration.
- It is important to check that the specific situation for which the beneficiary has filed the claim is covered under the policy or not.
Death Claim Settlement Process
Step one: Informing the Insurance Provider about the Claim
In order to start the claim settlement process as soon as possible, the beneficiary of the policy should notify the insurer in case of decease of the insured. The details which will be required to provide while informing the insurance company is policyholder’s name, policy number, date of demise, the cause of demise, place of demise, the name of the beneficiary, etc. The individual can obtain the claim form either online by downloading it from the company’s website or from the nearest branch office of the insurance company.
Step Two: Documents Required
The beneficiary of the policy will be asked to provide certain documents such as:
- Age of the insurance holder
- Death certificate
- Original copy of policy documents
- Other required documents according to the need of the particular insurance company or case related.
In case of early death claim i.e. if the claim has been made within the initial three years of the policy being active then an extra investigation will be done by the insurance company in order to ensure that it is a genuine claim. The investigation may include:
- The insurance company investigates with the hospital whether the demised policyholder was admitted to the hospital.
- In case of demise of the insured on an air crash, the insurance company confirms from the airline authorities whether the insurance holder was the passenger on the plane.
- In case of decease of the insured due to critical illness, the insurer will ask the hospital to provide treatment records, doctor’s certificate, etc.
Step Three: Submission of Essential Documents for Processing Claim
For hassle-free claim processing, it is very important that the beneficiary provide thorough documentation as soon as possible and any other required documents that the insurer will need to pass the claim.
Step Four: Claim Settlement
According to Regulation 8 of Insurance Regulatory and Development Authority of India (IRDAI), 2002, the insurance company is obliged to settle the claim within 30 days from the day the claim has been filed. In case the claim needs any further investigation then the insurance company is obligated to settle the claim within 6 months from the date of receiving the written information of claim.
Maturity & Survival Claims:
The maturity payment is known as the amount payable to the beneficiary of the policy by the insurance company in case of completion of the tenure of the policy. The sum assured amount is payable to the beneficiary of the policy along with incentives/bonus.
The insurer informs the insurance holder before sending the form of bank discharge filling details in it. In order to claim the maturity benefit the insured will have to fill the form thoroughly and submit it to the insurance company along with details like ID proof, original policy documents, a copy of passbook and canceled cheque.
Along with the basic life insurance coverage, the insurance buyers can also attach riders to the policy to enhance the protection. The different types of riders offered under a life insurance policy are accidental and disability rider, waiver of premium rider, critical illness rider, etc. Different riders have different claim proceedings. In order to claim critical illness rider, important medical documents like doctor’s report, first diagnosis report, etc. are required.
In order to claim accidental disability rider important documents like copy of Certificate of disability by the treating doctor, doctor’s report, FIR etc. are required.
A little carelessness when making a life insurance claim may result in a delay or denial of the claim. That’s why it makes sense to ensure proper documentation and follow the proper claim process. Getting acquainted with the claims process and the required documentation goes a long way in ensuring a smooth and hassle-free claim settlement process, especially during emotionally challenging times such as filing death claim of a loved one.
Reputed life insurance companies such as Max Life Insurance Company ensure minimum documentation and a rather smoother claim process to ensure that nominees are able to settle their claims rather smoothly, without having to run from pillar to post.