7 tips to ensure a hassle-free claim settlement

May 30, 2022

Tips to ensure a hassle-free claim settlement, claim settlement, insurance claim, tips for insurance claim settlement, insurance claim settlement process,

Knowing the key do’s and don’ts of the claim settlement process can ensure people that their claim is settled on time and in a hassle-free manner.

No insurance policy can serve its real purpose without a proper claim settlement process. Be it health, life, motor, property or any kind of insurance, the entire purpose of buying insurance is futile if it cannot give financial protection during claim settlement.

Although the Insurance Regulatory and Development Authority of India (IRDAI) has made it mandate for insurance companies to settle insurance claims within 30 days of receipt of the documents, some claim settlement processes take longer than expected.

Balachander Sekhar, Co-founder, RenewBuy, says, “Knowing the key do’s and don’ts of the claim settlement process can ensure people that their claim is settled on time and in a hassle-free manner.”

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Ensure timely intimation: (Tips to ensure a hassle-free claim settlement)

Whether it’s a life insurance or health insurance policy, the first step to ensuring that the policyholder gets the claim at the right time is to quickly appraise the concerned insurer in case of any crisis situation.

Sekhar points out, “Consumers should adhere to the timeline for filing a claim in the insurance policy. If the request for claim settlement is not filed within the time frame advised, the process may become more time-consuming.”
Understand the Claim Sattelement Ratio:(Tips to ensure a hassle-free claim settlement)

Industry experts say, consumers often skip this step; they do not check the claim settlement and solvency ratio of the insurer. As per IRDAI, insurance companies should maintain a solvency ratio of 150 per cent, to minimize the risk of bankruptcy.

Sekhar says, “A good solvency ratio helps consumers identify if the insurance company is financially capable of settling claims in difficult situations. An insurance company should be capable of solving both short-term and long-term claim settlement issues.”
Avoid Ambiguity: (Tips to ensure a hassle-free claim settlement)

It is important to inform the insurance company, of all necessary details like medical history, family history, and important assets while filling up the forms.

“One should attach all the necessary bills, copies of insurance cards and other relevant documents while submitting the forms. Without proper support of documents, claims cannot be validated. The majority of the challenges are faced by the consumers, due to the non-clarity of documents,” explains Sekhar.
Know your policy inside: (Tips to ensure a hassle-free claim settlement)

IRDAI provides policyholders with certain rights. For instance, if a claim settlement request is not accepted or rejected within 30 days from the receipt of the last necessary document, the insurance company shall be liable to pay penalty interest to the insured person.

Similarly, Sekhar points out, “there are many other parameters that an insurer should be aware of, which will help them settle their claims on time, or receive compensation in case there is a slip by the insurance company. Consumers should be aware of their basic insurance rights.”
Stating the correct medical history & facts:(Tips to ensure a hassle-free claim settlement)

In the case of health and life insurance policies, medical records play a crucial role in the underwriting process and this underwriting is further crucial for due claim settlement.

Sekhar says, “A false medical status can lead to re-investigation of claim and an eventual rejection can take place, in case of any major discrepancy. Thus, consumers should disclose the correct information in case of buying an insurance policy.”

He further adds, “There has been an ample number of cases where claims have got rejected due to false medical disclosure from consumers and this remains one of the major challenges that the industry is facing even today.”
Keep Documents Handy: (Tips to ensure a hassle-free claim settlement)

Keep your insurance policy & claim related document organized, safe, and always in your disposal. When making a claim, submit the claim documnts well in advance, as a last minute paper word poses problems & causes delay. If any document missing during the claim filling process, its leads to wasted time. Also ensure to submit the documents in line with the kind of life insurance claim being processed. – Death, Maturity, or Rider.
Get an e-Insurance Account: (Tips to ensure a hassle-free claim settlement)

Opting for an e-insurance account is good idea as it minimize paper work and keeps your policy documents & information streamlined along with easy, 24/7 access. Claim sattelement is an integral aspect of Insurance. Follow those simple tips & make it smoothe sailing.

Conclusion

Settling claims has never been easy, either for insurers or consumers. However, excerpts say by keeping a few vital points in mind, consumers can make their claim settlement process seamless.

Sekhar concludes, “Awareness and acting upon the awareness, are crucial for any insurer or consumer to avail of the best possible insurance services. It is always advised to take the route of a digitally enabled insurance advisor, who can guide consumers with the best suitable insurance products as per their needs and requirements.”

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