What is the Procedure Regarding the Settlement of Claims?

Irrespective of the type of insurance product—life insurance or general insurance—you must consider the claim settlement ratio of the insurer before putting your faith in them. After all, a tedious and complicated claim settlement process is the last thing you want to deal with, especially in the face of a crisis.

The procedure of claim settlement

While the exact procedure may vary from company to company, some steps are common to all insurance providers. These are:

• Intimating or notifying the insurance company:

• Whether it is life, health, or car insurance, the moment the loss or the need for a claim arises, you must intimate the insurance company. Give a written application with all necessary details such as the name of the policyholder, policy number, and mishap/event details depending on the type of insurance.

• Submitting the necessary documents:

• Next, as a claimant, you must submit your statement, the original policy document, health certificate or declaration in case of health insurance, death certificate in case of life insurance, FIR in case of loss of property or vehicle, and likewise. Contact your insurance provider in case they need any additional documents.

• Verification of the submitted documents:

• Once you have submitted all the necessary documents, the insurance provider will corroborate your claim with the policy outline. This is to ensure that you are raising a legitimate claim and it is not outside the range of your insurance policy coverage.

• Claim settlement:

• Once the verification process is completed, and the insurer confirms there is no discrepancy in the claim application, your claim will be settled. The insurer is obligated to settle your claim within 30 days of the submission of all the relevant documents.

Then, depending on your insurance type and policy terms, the reimbursement amount or the insured sum will be either transferred to your account or to the concerned party whom you are liable to pay.

To know the latest claim settlement ratio of your preferred insurer, look for the IRDA Claim Settlement Ratio 2022. Research well about the insurance company, its claim settlement ratio, financial health, and more before investing in a policy.

Always chose a credible insurance provider such as ICICI Lombard. It not only has an excellent claim settlement ratio but also robust financial health. These two factors promise the most seamless and hassle-free claim settlement in a time of need.