Importance Of Claim Settlement Ratio
Updated On Feb 14, 2022
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In order to file a claim for term insurance, there are several steps to take. Term insurance beneficiaries or dependents should notify the insurer right away if the insured person dies an unfortunate death. Additionally, it is imperative to keep all documentation handy when filing the claim.
Furthermore, before informing the insurance company, the beneficiary needs to bear in mind certain factors. You should choose a term insurance plan that is effective and pay all the premiums on time. Make sure that all the exclusions are known to the beneficiary. Policy coverage should specify the specific situation for which the claim is made.
How Important Is the Claim Settlement Ratio?
Choosing the best insurance company for your needs requires checking various aspects. The insurance company must tell you about the different policies and coverages that they offer. To understand their customer relationship management and services, you must know how their customers rate them. Most people, however, overlook the importance of checking the settlement ratio of claims, which is a huge mistake. Consider these reasons for reviewing the IRDA settlement ratio:
1. Determine the reliability of the insurer
Investment plans like life insurance are big investments. To get the benefits offered by the policy, you have to pay a large number of premiums over a long period of time. The rejection of your claim in the future can negatively impact your financial planning. In order to determine whether an insurer is reliable, it is possible to use the settlement ratio. The higher the settlement ratio, the better the insurer.
2. Ensures the financial stability of your dependents
To ensure the financial security of your family, it is important to check the term plan claim settlement ratio. An insurance company's denial of an insurance claim is the last thing any family needs to endure following the sudden loss of a loved one. In order to avoid your family experiencing this, it is your responsibility to protect them. A settlement ratio can help you make an informed decision when buying a policy.
Step By Step Claim Settlement Process of A Term Insurance Plan
A step-by-step overview of the claim settlement process for a term insurance plan is given below:
Step 1- Claim Intimation
The beneficiary should notify the insurer as soon as possible in order for the claim process to begin. Documents necessary to initiate a claim are those provided by the policyholder Information such as name, age, policy number, cause of death, place of death, nominee, etc. Alternatively, they can pick up the claim forms from the nearest insurance company branch.
Step 2- Important Paperwork To Keep in Hand
Beneficiaries should keep a few documents with them while filing a claim. Documents required by the insurance company are the age proof of the policyholder, the death certificate, and the original policy documents.
Step 3- Submitting the required documentation
A nominee should submit all important documents as soon as possible in order to expedite the process of claim settlement. There are four types of documents that must be provided as part of the claim process, including the properly filled claim form, the original death certificate along with an attested copy from the local municipality, the original policy documents, passport size photographs of the beneficiary, proof of identity, and a last medical visit certificate from the doctor.
Step 4- Claim settlement
According to IRDAI guidelines, claim settlements must be completed within 30 days. When the nominee submits the claim form and all the required documents, the insurer should settle the claim. In case the insurance company needs to perform some extra investigation in order to settle the claim, the process must be completed within 6 months of the written notification of the claim.
Take Away
Insurance companies have a very specific claim settlement process. It is more reliable to obtain term insurance through an insurer whose claim settlement ratio is higher. Consider the claim settlement ratio of the insurance company before purchasing a term insurance policy and remember the process of settling a claim.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
