Life insurance usually has three types of claims — death claims, maturity claims and claim on riders. Given below are some of the ways to avoid a delay in claim settlement.
Share complete information One of the most common reasons due to which there could be a delay in claim settlement is sharing of wrong or incomplete information. Either of the situations could mean not only delayed contact from the insurer, but also complete restriction on contact by the insurer.
Forgetting to share updated information, such as your mailing details, contact number or any other essential contact details, could also hinder the process. In such cases, it is advisable that upon receipt of the policy bond from your insurer, you check and verify the authenticity of all details provided in the document.
Non-disclosure of information on the proposal form could also delay the claim. At the proposal stage, ensure that you disclose all details, such as health status, occupation, habits, physical disabilities and other insurance policy details. Making sure that you have all such details in place would reduce the chance of conflict at the claims stage.
Mention a nominee When filling your proposal form, make sure to mention the name of the nominee(s) in your policy form.
It is also equally important that your family members are also aware about the policy, as this will allow them to make a quick claim, if the need arises. In situations where the nominee may have passed away before the policyholder, ensure that the details have been updated, and revised nominee details are provided.
Authentic documents In order to ensure timely settlement of claims, it is crucial that all the documents submitted are authentic. Detection of any false or fabricated documents could lead to rejection of claims, rather than delayed settlements.
For assessment of few living benefit claims, such as critical illness benefit, insurers would also require case management reports and hospital treatment notes while hospitals would require authorisation to share these documents with the insurer.
It is advisable that claimants provide this authorisation while filing claims, as this would facilitate the insurer to obtain the documents for faster assessment of the claim.
For speedy settlements, claim intimations should be made within the time-frame specified by the insurer in the policy document.
It is also advisable that the submission of claim documents is done within the same time-frame as this will speed up the claim settlement procedure and make it seamless.
Look into other aspects, such as the claim settlement history of your insurer. Many life insurance companies offer customers the option of staying updated on the status of their claims through real-time data which could easily be accessed on the company Web site.
Besides, with the option of online transactions, it is advisable that you opt for electronic payment of the claim amount, as this would not only be a quicker form of transacting, but also hassle-free.
(The writer is Head-Technical, Kerala, Bajaj Allianz Life Insurance)