Get Tips on How to Make a Successful Insurance Claim

NUTAN GUPTA

05 Oct 2016

The bureaucracy of insurance companies, coupled with the threat of insurance fraud while bearing the loss of a loved one, makes the process of making an insurance claim a painstaking experience. The Insurance Regulatory and Development Authority (IRDA) provides guidelines for settling insurance claims. These guidelines provide that, insurance companies are obligated to settle claims within 30 days of receipt of all claimant documents. Insurance companies, on the other hand, employ claim investigators and legal advisors who scrutinize claim applications thoroughly. A feedback of possible fraud or malpractice would result in either an extension or a denial of the claim settlement. Whenever claimants choose to take legal action and prove their case, the matters take up to six months to settle. However, there are thousands of cases that have dragged for years in the courts. Below are some tips to make a successful insurance claim.

Successful Claims Begin At The Point Of Purchasing the Policy

When applying for an insurance policy cover, it is important to make all disclosures honestly. Hiding some ‘unpleasant’ habits such as smoking or pre-existing diseases will only complicate the claim process as it will be discovered then and the insurance company may decline to pay a claim on the basis of non-disclosure of material information.

At the occurrence of a Death or Hospitalization

In the event of a health cover, it is vital to alert the insurance company by sending a claim within the shortest time possible. Insurance companies take delays as reasons to arouse suspicion and elicit deeper investigation

Comprehensive Information Should Be Given To The Insurance Company Accurately

All the relevant information on the claim application including the name of the policyholder, date, location, and reason of death, and any other appropriate information required by the insurance company, omission or inconsistencies can cause jitters in the insurance company when processing your claim.

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mutual-fund

Why to Choose Mutual Funds Instead of Directly Investing Into Equities?

Whether to invest in equities or mutual funds is a question that has plagued every investor. As someone who needs the best value for his/her investment should you invest in equity directly or via mutual funds?

Let’s start by first understanding what these two terms ‘equities’ and ‘mutual funds’ stand for-

Equities- Equities generally represent ownership of a company. If you own any equity in a company, you are a part owner of the said company (depending on how much equity you own).

Mutual Funds – It is an investment scheme which is professionally managed by an asset management company. It pools together the resources of a group of people and invests their money in equities, debentures, bonds and other securities.

Why choose mutual funds over equities?

For people who’ve never invested in either stocks or mutual funds, it is hard to know which is better and where to start. Broadly speaking, if you are a novice investor, mutual funds are not only less risky but also way easier to manage. Here are some ways in which investing in mutual funds is beneficial as opposed to investing in equities -

Diversification

Mutual funds provide more diversification as compared to an individual equity stock. When you invest in equity, you are investing in a single company which has its inherent risk. For example, if you invest Rs.20,000 in buying equities of one company, you could face a total loss if that particular company performs poorly in the market.  

If you invest the same amount in mutual funds, it will be invested in different kinds of stocks and financial instruments, high-risk and low-risk both, so you might not face total loss even if one company does poorly.

Scale of Investment and Lower Costs

For an individual investor buying and selling stocks is a difficult task due to its high price. Thus, any gains made from stock appreciation are nullified if the overall trading costs are considered. Comparatively with mutual funds, as the money is pooled from a large number of investors, the cost per individual is lowered.  

Another advantage of mutual funds is that you don’t need to invest large sums of money. Buying equities for a profitable venture needs huge amounts of money, a minimum of few lakhs. With mutual funds, you can start with Rs.1000 and earn profits on that as well.

Convenience

Keeping an eye on the markets everyday is a time-consuming business, especially if you are investing as a side gig. There are people who spend their lives studying the market and still end up sustaining heavy losses. Though investing in mutual funds does not guarantee high returns, it is stress-free and needs less work as compared to investing in equities.

To sum it up

It is important to remember that mutual funds have their own disadvantages as well. Thus, as with any financial decision, educating yourself and understanding the suitability of all the available options is the ideal way to invest. 


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Get Tips on How to Make a Successful Insurance Claim

NUTAN GUPTA

05 Oct 2016

The bureaucracy of insurance companies, coupled with the threat of insurance fraud while bearing the loss of a loved one, makes the process of making an insurance claim a painstaking experience. The Insurance Regulatory and Development Authority (IRDA) provides guidelines for settling insurance claims. These guidelines provide that, insurance companies are obligated to settle claims within 30 days of receipt of all claimant documents. Insurance companies, on the other hand, employ claim investigators and legal advisors who scrutinize claim applications thoroughly. A feedback of possible fraud or malpractice would result in either an extension or a denial of the claim settlement. Whenever claimants choose to take legal action and prove their case, the matters take up to six months to settle. However, there are thousands of cases that have dragged for years in the courts. Below are some tips to make a successful insurance claim.

Successful Claims Begin At The Point Of Purchasing the Policy

When applying for an insurance policy cover, it is important to make all disclosures honestly. Hiding some ‘unpleasant’ habits such as smoking or pre-existing diseases will only complicate the claim process as it will be discovered then and the insurance company may decline to pay a claim on the basis of non-disclosure of material information.

At the occurrence of a Death or Hospitalization

In the event of a health cover, it is vital to alert the insurance company by sending a claim within the shortest time possible. Insurance companies take delays as reasons to arouse suspicion and elicit deeper investigation

Comprehensive Information Should Be Given To The Insurance Company Accurately

All the relevant information on the claim application including the name of the policyholder, date, location, and reason of death, and any other appropriate information required by the insurance company, omission or inconsistencies can cause jitters in the insurance company when processing your claim.

Have Referral Code?