The Importance of the Claim Settlement Ratio
Published On May 03, 2022
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There are various steps involved in the process of filing a claim on a term insurance plan. If the insured person dies an unfortunate death then the beneficiary or dependents of the term insurance plan should inform the insurance company immediately. Moreover, while filing the claim, it is important to keep all the documents handy.
Besides this, before informing the insurance company there are certain things that the beneficiary should keep in mind. The term insurance plan should be effective and all the premiums should be paid regularly. The beneficiary should keep in mind all the exclusions. The exact situation for which the claim is made should be covered under the policy.
Below is a step by step process of claim settlement in a term insurance plan.
Step By Step Claim Settlement Process of A Term Insurance Plan
Here's a step by step guide to your claim settlement process of a term insurance plan:
Step 1- Inform The Insurer About The Claim
In order to allow the insurance company to start the claim process, the beneficiary should inform the insurer as soon as possible. The documents that are required for the initiation of the claim are the policyholder's name, date of birth, policy number, reason for death, place of death, name of the nominee etc. The nominee of the policy cab either download the claim form from the insurance company's website or van collect it from the nearest branch.
Step 2- Important Documents To Keep Handy
There are some important documents that the beneficiary should keep with themselves while filing the claim. These are the age proof of the policyholder, death certificate, original copy of the policy documents and any other document as per the requirements of the insurance company or related to the case.
Step 3- Submission of The Required Documents For The Claim Settlement Process
In order to fasten the process of claim settlement and to avoid any type of delay, the nominee should submit all the important documents as soon as possible. These documents include the proper filled claim form, original death certificate along with attested copy issued by the local municipal authority, original policy documents, passport size photographs of the beneficiary, identity proof of the beneficiary, medical records and last medical attended certificate by the physician.
Step 4- Settlement of Claim
As per the IRDAI rules the claim settlement process should be done within 30 days. The insurer should settle the claim from the dates the nominee submits the claim form along with all the important documents. If the claim settlement requires some extra investigation then it is mandatory for the insurance company to complete the claim settlement process within 6 months from the date of receiving the written intimation to the claim.
Knowing the claim settlement process of an insurance company is very important. The higher the claim settlement ratio of the insurance company, the more reliable it is to purchase term insurance from that company. Thus before purchasing a term insurance plan check the claim settlement ratio of the insurance company and keep in mind the process of claim settlement.