Insurance Claims

The purpose of being insured is to protect your finances in case of any crisis and to ensure that your loved ones do not have to face the perils in such circumstances. While choosing an insurance plan, one of the key parameters that must be noted is the claim settlement ratio, which can give you a fair idea of the average rate of claims submitted to the insurer and the number of claims that were settled. Submission of a claim happens when the damage or the peril mentioned in the policy happens and you are seeking fulfillment of the claim. The insurance company is then supposed to verify the claim and reimburse you as per the terms and conditions involved. As an informed consumer, it is therefore, important for you to know how the claims are settled and how the capital benefits are paid, after verification of the claim.

This involves knowing about certain technical factors like deductible amount, actual loss, liability of the insurer etc. Depending upon the type of plan, claim settlement process varies. For instance, any insurance claim related to property (whether movable or immovable) involves meeting adjustors, seeking approvals for estimates and repairs etc. All this actually depends upon the type of plan, any add-ons etc. You must always stay informed about the details so that they can come in handy, if required.

• Actual Cash Value Settlements:

  Understanding this is important as it helps you at the outset and right at the initial stage f purchasing the policy. An insurance plan that is based on the actual cash value (often related to an asset) can make you receive less amount than the current value of the asset. This is because such a settlement is based on the current value of the asset, which may be different (lesser than) from what it was when the asset had been acquired. The value of an asset may depreciate overtime and in case of any damage to it, the amount to which you are entitled may be less than the original cost of the asset.  

• Replacement Cost Settlements:

  In terms of coverage benefits, such settlements score over the actual cash value settlements. Replacement cost settlements can negate the damage or loss caused by replacing the asset, depending on whether sufficient coverage was in place at the time of loss or damage to the asset. Therefore, on the whole, the situation for the policyholder comes back to what it was before the loss or damage took place.

  The procedure for filing of claims also varies from one plan to the other and the particular subject of insurance (for instance, in case of vehicle insurance, the subject of insurance is the vehicle). For example, in case of claim for vehicle insurance in the event of an accident, following are the steps to be taken:

  1. Call your agent and follow the directions your agent gives you to provide all documentation related to the accident and file your claim. You may need a police report.
  2. Keep copies of all your documentation and bills related to the accident. Jot down detailed notes following conversations about the accident.
  3. Check from your agent the time limitations for filing your claims and submitting bills.
  4. Check whether there are any estimates involved and the process from there onwards.

  The method for filing a claim obviously is different if you are filing a claim for let's say hospitalization benefit of a health related concern. But this gives a broad idea about the importance of documentation and carefully examining the terms and conditions at the very beginning. Online mode of filing a claim has made the process very simple in comparison of the offline mode.

HDFC Life offers online insurance policies for securing your finances for your loved ones in case of any mishap. For details, click on the mentioned link: https://www.hdfclife.com/life-insurance-plans

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