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.
In this blog, we will look at the importance of claim settlement and the steps involved in the process to help you complete this important step that allows you to enjoy your insurance benefits.
Why is claim settlement important?
Claims settlement is an important part of the insurance policy when the insurer fulfils the promise of financial support to the policyholder. A quick and fair settlement offers financial relief to the policyholders during difficult times. According to the Insurance Regulatory and Development Authority of India (IRDAI), insurers are obliged to settle all claims within 30 days. However, it may take longer depending on the case details.
Step-by-step process for claim settlement
While the exact procedure may vary from company to company, some steps are common to all insurance providers. It is important to properly understand your insurance and claim, disclose all the required information to the insurer at the time of purchase, and pay the premiums on time to ensure a smooth settlement process when the need for a claim settlement arises.
If you need to file a claim, follow these steps-
- 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 car 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.
- According to IRDAI guidelines of 2024 released as a master circular on 'Protection of Policyholders’ Interests,' death claims where no police investigation is involved are to be settled within 15 days from the date of claim filing. For death claims with the investigation, the settlement should be finished within 45 days from the date of intimation.
- If the insurer fails to settle the claim by the due date, the policyholder is eligible for interest at the bank rate of 2% on the claim amount, which has to be provided by the insurer without any additional formalities.
- If the policyholder has opted for a cashless claim in health insurance, the insurer must settle the claim in 3 hours once they have received the request from the hospital. Besides this, the insurance provider is also responsible for ensuring the release of mortal remains from the hospital in the event of the policyholder's death.
Whether purchasing a car insurance policy or looking for general or health insurance policies, it is advisable to read the fine print and be aware of your rights as a policyholder to make the most of the policy benefits.
Conclusion
To know the latest claim settlement ratio of your preferred insurer, look for the IRDA Claim Settlement Ratio 2022. Research the insurance company, its claim settlement ratio, financial health, and more before investing in a policy.
Always choose 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.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.