Exact Meaning Of Life Insurance

Importance of Life Insurance Claims ‘What comes to mind when you hear the word ‘insurance’? Investment, Tax rebate, Savings or Security?! Insurance for the masses is a means of investment or a long-term saving mechanism.

Life insurance is meant to replace the loss of earned income on the death of the breadwinner. An individual may insure to protect the education or marriage plans of his children or to offset a home loan liability on his untimely death.

Every vehicle on the road is covered by motor insurance, as it is a mandatory requirement. Unfortunately, not all earning lives are insured and a natural calamity / catastrophe could make many families destitute even today. In a country where insurance awareness is low, if the insured’s family does not get the benefit of insurance on the death of the breadwinner, the faith in the insurer and insurance is lost.

Repudiation or rejection of claims is a big letdown for the customer, distributor and the company. If we analyse the rejected claims data, the major cause of claims rejection is non-disclosure of existing health impairments by the policyholder at the proposal stage. The other reasons for claims rejection are claims on lapsed policies, or claims where exclusions hold good. It should be our joint endeavour to educate customers about the consequences of non-disclosure in a life insurance policy to avoid repudiation at a later stage. A claim can be made only on a policy in force. No risk is covered under lapsed policies.

It is also important to guide the claimant to file a claim in case of a contingency. The following documents are required for more efficient claim processing: Claim form Policy document Few relevant documents based on the cause of death, sum at risk and the ageing of the policy (For more details please log on to our website or the Claims section in Intranet) The regulator has provided a time frame of 30 days for taking a decision on a claim on receipt of the final requirement. If an investigation is required, the insurer is allowed a period of 180 days to investigate and process the claim.

Friends, let’s work together to ensure that every policy is issued on the basis of correct information and encourage customers to make all disclosures. This will ensure smooth processing and expeditious settlement of claims.

Claim benefit is the essence and purpose of a life insurance policy. Let’s work towards making it a moment of truth for our policyholders. Contributed by the Claims TeamWrite your abstract here.

Life Insurance