Understand Claims before Investing in Your Life Insurance

While searching for a life insurance policy, most of the people focus on low premium amount with high returns and that’s fine because the insurance policy you are going to buy should fit into your budget and should also provide high returns. But in the rush of searching for the most affordable insurance policy, most of the people miss one of the important aspect of the insurance policy which is claim.

Imagine a situation where you choose a life insurance policy after analyzing each and every aspect, but in the end your claims get rejected even after paying continuous premium for 30 years. It would result in a disaster because the need of money is very high for the policyholder or the family while making a claim. So let us understand everything related to the claim of insurance policy through this article, so that your life insurance policy doesn’t turn out to be a bad surprise for you

Claim Settlements and their Importance

One of the essential factors that require consideration is linked to the settlement of claims by insurance companies in India. As per the report issued by the Insurance Regulatory and Development Authority of India (IRDAI) in the year 2013, it was revealed that claim settlement ratio of only five companies was above 90%. This means, companies that have been operating in India for the past ten years aren’t really doing what they promise.

When it comes to insurance policies and insurers, claim processing and settlement should be the ideal yardstick for their evaluation. Insurance companies hook customers through lucrative policies that are full of benefits, but are tightfisted when they have to pay up.

Ways to Avoid Claim Rejection

  • Don’t lie while giving information to the insurer because any misleading information will be considered as a “concealment of information” which will lead to cancellation of your policy
  • Go for a medical test before taking a policy because your claim could be rejected if you are found with some pre-existing disease which you haven’t revealed
  • Pay premiums on time because once the policy is lapsed, you will get no any benefit from your policy
  • Always update the nominee details on time because your requirement changes according to your life. Not updating nominee detail is one of the biggest reasons of claim rejection
  • Understand the policy document well. There are many circumstances when you are not covered under your policy and if you are not aware about them, it could lead to rejection of your claim.

Which Company should you choose?

As much as the overall claim payment scenario looks gloomy, there is still hope. Various insurers in India are working with their customers and offering fast claim settlements in convenient ways. Gathered here are the resources that you should look into as they believe in processing claims quickly.

Max Life Insurance

Max Life Insurance offers its products and services under the motto of “fairest, fastest and friendliest in claims processing”. They ensure that their customers are able to get their claim settled quickly through claim assessors. Max Life Insurance clearly states that all death claims will be settled by the company within ten days. If it fails to do so, the company will be liable to pay at the rate of 6 percent p.a. for any delay.

Life Insurance Corporation(LIC)

Life Insurance Corporation also offers customers with coherent claim settlement offers. All you have to do is arrange a meeting with your bank or insurance companys official. As a claimant, you need to carry the death certificate or policy bond so that all claims can be processed easily. The company promises to issue the check within seven working days, from the moment they are notified with pertinent documents.

ICICI Prudential

ICICI Prudential allows customers to apply for their claims through five different ways. Customers can visit their bank branch in person, use Online Claims Portal, call at the dedicated helpline number 1860 -266 – 7766, write to the bank through email at lifeline@iciciprulife.com and/or SMS “ICLAIM <space> policy no’ to 56767”.

Once the documents have been submitted, the Claim Care team at ICICI Prudential goes through the same and lets you know if anything is missing or not in order. As a customer, you will be contacted at various stages of processing so that your claim can be settled without any hiccups. Once the investigation is complete, ICICI Prudential will notify you about your claim, all within twelve working days.

Way Forward

The ones mentioned above are not the only agencies that you should consider if you want to purchase insurance plans that can be easily claimed. You can also look towards the offers presented by New India, National, Oriental, SBI General and United India, as they boast of a high claim settlement ratio as well. So, the next time you are visited by a sales agent with regards to a new insurance policy, you must ask for the claim settlement record of the insurer, and go with the one that’s least tightfisted about paying up.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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