Claim settlement process – what should you know about it?
Term Insurance Policy is a pure protection plan which doesn’t provide any maturity benefits, unlike other life insurance policies. It acts as a chalk horse in a rough time and guards your family financially.
It is now highly preferred by Indians because of its unique qualities like high life coverage, low premium rates along with other flexible benefits. In your absence, the term insurance policy gives your family the leeway to lead their life comfortably without any restrictions as they use to do before. All these features are essential to consider while choosing the best term insurance for yourself and your family. However, it is also imperative to know about the claim settlement process before purchasing a term insurance policy.
What is claim settlement?
Claim settlement for term insurance policy refers to the request to the insurance provider by the policy beneficiary to claim the death benefit in case of the untimely demise of the policyholder within the policy tenure. Almost all the insurers provide hassle-free claim settlement process such that the nominee doesn’t have to face any hurdle to claim the insurance coverage.
Claim settlement process of term insurance policy
The claim settlement procedure starts with informing the insurance company by the beneficiary. Further, there are certain things that the policy beneficiary needs to remember while informing the insurer. These are
- The beneficiary of the policy should be aware of the policy exclusions. Talking about the inclusion and exclusion in the policy, it depends upon the risk factor associated with the policyholder. Such as smokers and non-smokers get different benefits. The term insurance policy covers both natural and unnatural death. In case the death is due to suicide, then the claim is settled after one year of policy commencement.
- The term life insurance should be active, and all the premiums should have been paid regularly.
- The exact scenario for which the claim has been filed should be covered under the policy.
Moreover, there are multiple steps involved in the claim settlement process of term life insurance. So, let’s understand the details about each step involved in the process of claim settlement to give you a clear idea about the claim procedure.
- Informing the insurer – In case of the untimely death of the policyholder, the nominee should immediately notify the insurance company so that the claim settlement process could get started as soon as possible. More importantly, while filing the claim, all essential documents should be kept handy such as documents related to insured’s name, date of birth, policy number, place of death, cause of death amongst others. The nominee of the policy needs to download the claim form from the website of the insurance company or its nearest branch.
- Relevant documents to file the claim – Certain essential documents are required to submit the claim request that includes
- Death certificate of the policyholder.
- Policyholder’s age proof.
- Original policy document.
- Any other document related to the case or as per the requirement of the insurance company.
In case the claim has been filed within the three years of the policy commencement date, then the insurance provider does further inquiry to see whether the claim application is genuine or not. Let’s take a look at what happens.
- If the insured person’s demise is due to any critical illness, then the insurance provider will enquire from the hospital and check for details like medical records, doctor’s certificate etc.
- The insurance company will enquire with the hospital, whether the deceased person was admitted to the hospital or not.
- If the insured person’s death is due to an airline crash, then the insurer will check with the airline company whether the deceased policyholder was a passenger in the respective flight or not.
- Submission of the required documents – The beneficiary of the policy should submit the papers as early as possible, to speed up the claim settlement process. Here is the list of documents that are required at the time of processing the claim:
- Duly filled claim form
- Original policy documents
- Passport size photograph of the nominee
- ID proof of the nominee like Passport, Aadhaar card, PAN card etc.
- Original death certificate
- Post-mortem report (if any)
- Medical records of the deceased like the admission papers, test reports, discharge and death summary
- Last health check related certificate by the physician or hospital
- Settling the Claim – As per the Insurance Regulatory and Development Authority of India (IRDAI), all insurance companies must settle all the claims within 30 days of the submission of the claim form along with the required document by the beneficiary. In case, some additional investigation is required, then the insurer is mandated to complete the claim settlement process within six months from the date of receiving the intimation of the claim.
To sum up, it is imperative that you are aware of the claim settlement process of the insurance company whose term insurance you are buying. Do check insurer’s claim settlement ratio to check the credibility of the insurance provider. Therefore, while filing the claim, do keep in mind these pointers to have a seamless claim settlement procedure. If you want to have more clarity on the same, you can visit BimaKaro.in and get your all query answered by experts.