Retirement Insurance Claim Settlement Process Explained
Updated On Jul 19, 2021
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Pension and Retirement Plans give you financial stability so that you may still live with pride without compromising your living standards when your professional income starts to shrink. With increasing living costs and increased inflation, pension schemes have become all the more vital.
One of the most significant components of an insurance policy is the claim settlement process, especially if it is a retirement cover. An insurer has two possible solutions: third-party administrators (TPA) and the insurer's in-house processing service to settle the retirement insurance claim of a policyholder.
When Can Retirement Benefits Be Claimed?
In any month after age 62, Retirement Insurance Benefits are subject to specific restrictions and may be claimed. However, benefits may be decreased, if claimed before the full retirement age of that person. The benefit is decreased by a set portion of the PIA every month before the month in which the person reaches the full pension age. The benefit is reduced by 5/9 by 1% of PIA for the first 36 months and by 5/12 by 1% for the extra months. For the first three years, the overall reduction is 20%
Death Claims On Retirement Plan
If the insured person dies, his nominee is entitled to receive the monetary benefits of his retirement insurance plan. A death claim must be communicated to the insurer as soon as possible after the event occurs. For a hassle free and easy claim, the nominee should ensure that the claim file is submitted punctually. If the policy is older than 3 years, the probability of investigation is less.
Health Claims On Retirement Plan
If the insured individual wants to claim health benefits on his retirement insurance plan, the claim should be made within 15 days of the requirement. Within 30 days of the day the last document is received. The investigation should be completed within 30 days after the date on which the required necessary document is received and the claim must be resolved within 45 days after the date on which the last document is received.
General Claim Settlement Process
Step 1 - Insurance Claim Reporting
The first step is to make your claims known. Your claims may be reported online, in their branches or by SMS as you like.
Step 2 - Insurance Claim Review
The staff will next examine your claim information and advise you at every stage of the way, individually. You will evaluate your claim, advise you of the pending documents and raise a requirement. If you need any assistance, our claims professionals will advise you and ensure we can help whenever you need us.
Step 3 - Insurance Claim Settlement
They shall satisfy your claim once you have informed them of the claim and have received all the appropriate papers. In addition, they use electronic modes of transfer to settle your claim to secure your payment amount, to eliminate documentation and to ensure your comfort.
Pension and retirement plans provide large regular retirement income to save money during working life. Despite the ever increasing expense of living, your family may sustain their lifestyle without your monthly paycheck. Suitable pension plans also help you without worrying about unforeseen bills therefore you should choose the best suited plan for yourself and make sure that you clearly read and understand the inclusions, exclusions as well as the terms and conditions of the retirement insurance plan you wish to settle for.
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.