Unit Linked Insurance Claim Settlement Process Explained

As the name implies, a claim is a formal request to the insurer to pay the premium on a regular basis in line with the policy's paperwork schedule. The endowment insurance plan's last phase or obligation is generally viewed as its final phase or responsibility. 

Prior to being implemented, it is reported by the policyholder's nominee and goes through a number of procedures. A step-by-step method to the resolution of endowment policy claims is presented in this article.

Explaining the ULIP Insurance Claim Settlement Process 

The steps that make up a claim settlement process are outlined below.

Step 1: Notify the Insurance Company

It is necessary to notify the insurance company of a claim for a variety of reasons. Important papers that must be presented by a policyholder in order to substantiate a claim are mentioned in the policy's provisions. Please remember that the claim must be submitted in writing. 

Step 2: Claim Report Investigation 

When the insurance company receives a claim, it will begin a warrant procedure to rule out any possibility of foul conduct. Most claims are resolved within six months of filing. Any inconsistencies will be pointed out to the candidate. The claim evaluation is a crucial stage in deciding whether or not to pursue the claim. The nominee may be requested to send reminder letters to expedite the process. 

Step 3: Settlement of Claims 

A claim under an endowment policy is paid or contested within 30 days after receipt of all necessary documentation and explanations, with appropriate reasons. In the case of a death claim, payment is usually started after a comprehensive review of the relevant papers, which may include a proof of death certificate from the local authorities. Payment methods vary from one firm to the next and are adapted to the individual's demands.

Common Reasons Why Insurance Life Claims Are Rejected 

Following are some of the common reasons observed for rejection of claims - 

1. Providing Misinformation

If the information shared with the insurance provider is either missing or incorrect, then your claim is likely to be rejected. Always double-check the facts you write down while filling out life insurance policy forms. This is to ensure that your application is examined during the claim process and that the information you have provided remains consistent throughout. Your claim could be rejected outright if this information is determined to be false or misleading.

2. Hiding medical information 

Giving the right medical history is one of the most crucial aspects of giving your information. Alcohol consumption, smoking, and any previous diseases should all be disclosed to your insurance carrier so that there are no stumbling blocks during the claim settlement process.

Take Away 

Under United Linked plans, claim settlement is a straightforward procedure as long as the papers produced are related to the issue at hand. As a general rule, insurance companies will help the candidate during the entire procedure.

Also read - Top 5 Benefits:Buying Unit Linked insurance plans

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.