While choosing a term insurance cover, one of the most important factors is to choose an insurer who has a high claim settlement ration. Claim settlement ratio is the figurative average of the claims processed by an insurance company in any given financial year and of represented by a percentage value. Higher the claim settlement ration, high is the probability of getting your claim processed if need be, without any hassles and other issues. For the benefit and convenience of customers, IRDA (Insurance Regulatory and Development Authority) of India had made it mandatory for the potential buyers to calculate and consider the claim settlement ratio. Claim settlement ratio is the ratio of the number of claims received by an insurer and the number of claims settled by the insurer. Claim settlement ratio has been chosen to rate the insurance companies because it is the only ratio which could be of use to customers while they select the policy. High claim settlement ratio shows the insurer is reliable and could be trusted for taking term plans whereas the low ratio indicates that the credibility of insurer is less and therefore they won't attract many customers because of their inability to settle claims. Alternately, claim rejection ration or the claim pendency of the insurer can also be noted while calculating the claim settlement ratio so that you can take an informed decision.
As mentioned, other important factors also count equally while deciding the insurance plan that you wish to purchase. The premiums that you can pay, any further add-on features or extra coverage charges, the plan benefits as per your requirement, you income, age etc, all these factors must be taken into account while deciding which option works best for you. While choosing a plan at the outset, you must keep in mind that claim rejection can happen due to several reasons and you must carefully avoid any such mistakes or actions that may lead to your claim being rejected. Some factors which come under this category are:
- Incorrect documentation or misleading information regarding the eligibility for a plan.
- Not checking in details the terms and conditions mentioned in the policy documents.
- Wrong figurative data or fudged medical reports etc. being submitted.
- Absence of nominee at the time of claim settlement.
- Any sort of non-disclosure in any manner.
HDFC Life presents various term insurance plans for best meeting your needs and for securing the financial interests of your loved ones. For details, click on the mentioned link: https://www.hdfclife.com/term-insurance-plans.
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