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The purpose of life insurance is often addressed using buzz words such as ‘protection’, ‘secure your loved ones’ and ‘safeguard your future’. All of this is true when it comes to understanding life insurance but the moment of truth for any insurance company and its customers is ’Claims’. Insurers take pride in having a high claims settlement ratio and constantly aim at making the claims process easy and convenient for their customers.
Despite this, there is a perception that getting claims settled is a cumbersome task. While insurers settle all genuine claims at the earliest, there are a few measures that customers can take to avoid disputes or repudiation.
Firstly, understand the nature of the policy you are buying, the features and benefits and the premium amount and payment term of the policy. It is important that you pick the appropriate sum assured and tenure based on your current age and financial commitments. Ensure that the sum assured is in line with your income levels and standard of living. Also,make sure the renewal premiums are paid timely and policy is kept in force, as typically claims will not be entertained if the policy has lapsed.
Thirdly, many customers prefer to purchase the policy from an insurance agent (or the relationship manager at the bank), rather than to buy online. While the agent can help you zero down on the policy to be purchased and complete the paperwork, it is advisable to fill the proposal form yourself and/or ensure all the details mentioned in the form are correct.
In the unfortunate event of death of the life insured, it is important for the nominee/claimant to inform the insurer at the earliest. This can be done by sending an email or calling the customer help line number, with details such as policy number, name, date, place and cause of death. This will help the insurer expedite the claim settlement process.Once the insurer is informed, they will typically ask for the claim form (provided by the insurer) to be filled and submitted along with some documents such as the policy bond, death certificate, as well as the KYC and bank details of the nominees. In case of missing persons or accidental death, a few additional documents would be required.
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