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Insurance Basics

Tips to make claim settlement easy for your beneficiaries

10 August 2015
Claim settlement might seem like the responsibility of the insurance company; however policyholders can also do their part to simplify matters.
 

Few simple steps can ensure hassle-free claim settlement. The annual IRDAI report (2013-14) showed that 22 percent of life insurance claims were pending for over 12 months before settlement. Although the overall claim settlement ratio in 2014 was 96.75 percent, the long waiting period for claims is a matter of concern. After all, the death benefit should reach your family when they need it the most.

Claim settlement might seem like the responsibility of the insurance company; however policyholders can also do their part to simplify matters. Here is how to make claim settlement easy for your beneficiaries:

  • Full Disclosure and Accuracy: When filling out your insurance form, be as accurate and honest as possible. After filling the details, crosscheck and review it to make sure that there are no errors. Be upfront about health conditions, smoking and drinking habits, etc. Never withhold details and always fill the form yourself.

 

  • Update Details: Update your policy periodically so it includes all the latest details. Incorporate any changes in names, addresses, contact numbers, etc. Notify the insurance company if there is a change in beneficiary. Maintain proofs of the same.

 

  • Understand Your Policy: Read the offer and insurance documents well. Understand the exclusions, features and clauses so you become aware of the pre-requisites for claims. Know the rights of the beneficiary and stay abreast of the Redressal mechanism at your disposal. Read our article Understanding your Health Insurance policy to know about the general provisions of a health insurance plan.

 

  • Inform The Beneficiary: Once you understand the policy and how the claim settlement works, educate the beneficiary. The beneficiary should know the policy details, claim procedure and the sum assured. Ideally, the beneficiary should also be aware of the clauses and exclusions of the policy.

 

  • Maintain Documents: Keep all the important insurance documents organized and safe. Let the beneficiary know where you keep them. Label and categorize them so that the beneficiary can go through them with ease.

You can also opt for an e insurance account to streamline the information and make it easily accessible. Claim settlement is the most important part of the insurance policy. Make it smooth riding for the ones you love.

 
 
 

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