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6 Tips to Ensure a Smooth Claim Settlement Process

Feb 13, 2020 | 2 months ago | Read Time: 3 minutes | By iKnowledge Team
Tips to Ensure a Seamless Claim-Settlement Process

If not done right, claim settlement can be a long and tedious process. The Insurance Regulatory and Development Authority of India (IRDAI) reports that while the average claim-settlement ratio of insurance providers in India has been over 90%, there are long waiting periods before which a claim is settled. IRDAI reports a significant chunk of life insurance claims, for example, are pending for over 1 year before the settlement is initiated.

Choosing a life or term insurance provider offering a high claim-settlement ratio with timely repayments is essential. From your end, however, there are certain things you can do to help fast track your claim settlement process. Here are 6 tips to aid you in acquiring a smooth claim-insurance process.

Be Open Regarding Your Health and Lifestyle

When filing a claim for life or term insurance, avoid withholding any information about your health and lifestyle. Address any health concerns you have faced (inherited disease or accidents) and share any lifestyle habits that impact your health like smoking or drinking. Once you finish filling your insurance form, crosscheck it to make sure that no information appears to be ambiguous. Errors are common if someone else is filling the form for you, so avoid giving it to an insurance agent. Even minor mistakes in the form can significantly slow down the claim-settlement process.

Ensure Your Policy Reflects Updated Details

Once you purchase a life insurance policy, for example, it may be many years before a claim is filed. In this time, your contact details, names, and/or addresses may have changed. If these changes are not reflected in the policy the claim is filed for, this could slow down the claim settlement process. Ensure you regularly update your policy to reflect the latest changes in your details. Another tip is to keep the proofs of the modified policy documents handy.

Organize and Safeguard Important Documents

Any documents that are necessary for availing your life insurance death benefit, the sum assured, or bonus must be kept in a safe and easily accessible place. During the claim settlement process, a lot of paperwork needs to be presented. Life insurance and term insurance providers require documents like age proof, the death certificate, and policy documents. If any of these go missing, there is wasted time and the tedious process of refiling the claim. Organizing these documents will help you avoid the stress of locating important documents last minute.

Seek Out a Straightforward Claim Settlement Process

Another key point is to seek out a provider offering a simple and straightforward claim-settlement process. Aegon Life’s Life or Term Insurance claim settlement process is only three steps long and is tailored to minimize the trouble of filing claims. Upon the submission of documents in the case of the demise of the policyholder, a fund value will be paid out to the beneficiaries, making claim settlement truly hassle-free. Once documents are verified, the entire amount (death benefit) will be paid through electronic transfer.

Understand the Terms and Conditions

Every insurance policy has some fine print that traces the terms and conditions under which the claim might be valid or invalid. Read the policy documents carefully, including the term and conditions. Understanding your policy inside-out is essential so that you and your loved ones do not experience any surprises regarding your insurance policy during the claim process. If you know exactly what to expect, you will not have to deal with unanticipated barriers when filing claims.

Educate Your Beneficiary About the Policy

Your beneficiary may have to file your life insurance claim upon your unfortunate demise. A beneficiary who doesn’t understand the ins and outs of their insurance policy is likely to make errors and slow down the claim settlement process. Be prepared for this instance by educating your beneficiary on things like what to expect during the filing process, what the policy is offering, the deadlines when filing claims, and how to fill out the form.

In conclusion, there are many ways you can ensure that your claim settlement process is smooth. If you follow these tips, you are unlikely to make errors or find the process of claim settlement time-consuming and tedious.


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