Let's talk claims 22th Jan 2020
While choosing an insurance policy, the claim settlement ratio of the insurer is a major factor to consider. An insurance claim is filed to get coverage for the losses or damages you sustain due to the occurrence of an event as specified in the policy. Hence, proper claim settlement is an essential pre-requisite in your risk management system. When selecting an insurance company, you must check if it provides timely and easy settlement of valid claims.
Process to file claims
Step 1: Reporting the incident
When an event occurs, the claimant should submit a written intimation to the insurer for initiating the claim process. The faster you set the ball rolling; the sooner will be the settlement. Here, you should also make sure that your policy covers the event for which you’re filing the claim.
Step 2: Complete the documentation
For a smooth claims process, you need to submit the right documents within the stipulated timelines. Most of the insurance companies have online claim filing system where you can send the forms and upload images for ratification.
Step 3: Evaluation process
Before settlement of the claim, the insurance company will evaluate the veracity of your claim through an external investigation. Hence, you should be clear about the facts when filing the claim.
Step 4: Settlement of claim
As per the regulations of IRDA, the insurer has to settle a claim within 30 days after receiving documents and verification or pay interest. If any claim requires further investigation, the process should be completed within 6 months from the date of the written filing of the claim.
Technicalities that may occur when filing a claim
When filing your claim, you should be aware of common problems and technicalities that may impede the process. That includes:
If there’s any pre-existing ailment
Any ailments that a policyholder had before the issuance of the first policy are called pre-existing ailments. These conditions and diseases must be declared when buying the policy. If the company discovers them during claim settlement, it can restrict the entire process.
If nominee details aren’t updated
The legal battle between the nominee and an heir can be prolonged due to incorrect nominee details. You should update the nominee information as it changes over the term of your policy.
If the policy lapses
When you fail to pay premiums on time, the policy will lapse automatically. Some insurance companies give a grace period for payment of premiums beyond the due dates but your vehicle is not covered for that period of time. So, you should adhere to your payment schedule, or else it can lead to repudiation of your claim later on.
The right insurer
An insurance policy is an excellent financial product, and claim settlement is the main component of this product. Hence, you should select the right insurer after checking their claim settlement ratio.
Remember, the claim settlement ratio represents the total number of claims made by the customers against the total claims settled by the company. Compare the top insurers on this factor to make so you can pick the best car insurance in India.
Thus, you can use claims as an effective tool to determine the performance and reliability of an insurer.