Moment of truth: How to settle life insurance claims

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Every life insurance company adopts its own philosophy regarding handling of claims. Every life insurance company adopts its own philosophy regarding handling of claims.
SummaryNo activity in life insurance is of higher importance than that leading to settlement of claims.

very poor claims settlement record of that office. To eliminate such a mindset, an interface of various stakeholders was organised. This resulted in settlement of 90% of 65 pending cases in one day.

The system became responsive, sensitive and result-oriented. Every action taken thereafter by any manager had to satisfy one question: Will it help in prompt settlement of claim? While handling claims portfolio, indecision and procrastination tactics must be avoided. People handling claims must note that they are in business because there is a chance of a claim arising. In insurance, claim settlement is not only a moral obligation, it is also a business obligation.

* The writer is advisor (Life Re-ins), GIC of India, Former MD & CEO, Star Union Dai-ichi Life

Matter of honour

* The most critical issue in handling any job in a structured organisation is procedure

* It is expected to facilitate the end result within a time-frame while safeguarding the interest of the customers as well as of the company

* The people who hold the key to a successful transaction have to be conscientious enough to understand that claim settlement is the very purpose of the existence of a life insurance company in the society

* Acquiring customers through aggressive sales strategies and brand-building exercise is exciting; but if a company really wants to influence customers and create a future market for itself, it has to concentrate on deliverables like claim settlement to create a relationship of trust with the market

* The real test of claim settlement procedure is speed. In most of the cases, it is observed that the sum assured is finally paid but only after causing acrimony. In such cases, companies lose money as well as credibility

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