Life insurance claims make many people cringe - the paperwork, repeated visits to the insurers office, delays. But the onus is also on life cover buyers and claimants to make the claim process easy.
The pain of losing a dear one can be aggravated by complications while seeking an insurance claim. The task of making life insurance claims easier for nominees begins at the time of buying the policy itself.
Joydeep Roy, chief distribution officer, Tata AIG Life Insurance, says that non-disclosure and fraud are the most significant reasons for repudiation of claims. The other area where claims can go wrong is the claim form. Nominees should ensure that it is filled correctly.
Saji George, head, operations and underwriting, Bajaj Allianz Life Insurance, adds that the claimant should cooperate with the insurers representatives in the procurement of documents from institutions or individuals like hospitals and doctors.
Here are five ways to make the claim process hassle-free.
Material facts 
Problem: The insurer may reject your claim if you had provided wrong, misleading or incorrect information relating to your financials, health, occupation or family history.
Solution: This issue is an important one as it may make the entire claim null and void.
The other issues mentioned here, on the other hand, may prolong the process of claim but will not lead to its denial. So, ensure that all the information furnished while buying the policy is correct.
Nomination
Problem: Legal heirs will have to prove their status to claim insurance after the death of the insured if he had not named nominees. Faulty estate planning can also lead to delays. Nominees may not be able to trace the policy document if the insured had failed to inform them about his policy or kept it a secret. Nominees may be unaware of the policy.
Solution: Inform your nominees about the policy and where you keep the policy document. You can highlight the contact details of the insurer.
Payment of premiums
Problem: The insurer is not liable to pay the claim if the policy has lapsed. By paying premiums on time make sure that the plan does not lapse.
Solution: Pay premiums before the due dates through electronic transfer from your bank. Otherwise, pay religiously before the due dates. Insurers give a grace period of 15 or 30 days if premium is not on time, but try not to stretch it that far. If the policy lapses, you will need to fulfil various formalities to revive it.
Filling up claim form
Problem: Nominees should fill claim form completely and correctly. A wrong entry, say, of date of birth of the deceased, could lead to a probe and prolong the claim settlement process.
Solution: Keep a copy of the proof of date of birth along with the policy document for easy access by the nominees. Nominees should check with the insurers claim officer if the right entries have been made in the claim form, including the signatures of witnesses.
Documentation
Problem: Nominees should attach all the necessary documents to their claim application. Among these documents are the death certificate, proof of identity, policy document, and FIR report, if required.
Solution: Nomin-ees should get the list of documents required by the insurer in writing to prevent delays and repeated trips to his office.
