IDBI Federal launches 8-day claim settlement guarantee

The company will settle death claims within 8 working days or will pay 8% p.a. interest on death benefit

July 14, 2014 5:21 IST | India Infoline News Service
 In the business of insurance, the timely claims settlement is a vital service function that needs no special emphasis. The claims settlement record of an insurer is an important yardstick of its performance and plays a pivotal role in the decision making process of the customers.

In line with its customer centric approach, IDBI Federal promises death claim settlement in 8 working days  -under the initiative ‘8 Days Claim Settlement Guarantee’.

he initiative will be effective from July 08 onwards and will only be applicable for claims filed after this date. The Company has announced that it will settle death claims in just 8 working days. 
In case it fails to do so, the Company will pay an interest of 8% per annum, calculated on a daily basis, on the death benefit for each day of delay beyond 8 working days. The nominees can also track their claims status through the Company website,  www.idbifederal.com, by simply entering the policy number and date of birth of the life insured.

Vighnesh Shahane, CEO, IDBI Federal Life Insurance,
said, “Claims settlement is an insurer’s moment of truth. Beneficiaries/Nominees making a claim are invariably going through a traumatic period in their lives. While the void of losing a loved one can never be filled, we should take steps to improve our Claim settlement processes. Thus, our ‘8 Days Claim Guarantee’ ensures the death claims settlement process for the beneficiaries is completely hassle-free and devoid of stress.”

The 8 working day period is calculated from the date of receipt of all the necessary death claim documents requested by the Company. The interest payment is applicable for death claims of the policies which have completed 2 years since policy inception to 
the date of death of the life insured.The payment of interest shall not be applicable where the death claim needs further investigation.

IDBI Federal’s Claim Settlement ratio (of decided claims) in FY 2013-14 was 90%. 80% of the Company’s claims were settled within 60 days in FY 2013-14. The Company’s repudiation ratio came down to 5.47% in FY 2013-14 from 16% recorded in the last financial year.

IDBI Federal will settle claims in 8 working days or pay 8% p.a. interest on sum assured, calculated on a daily basis, for the delay beyond 8 working days.
The guarantee starts only after the Company’s Head Office receives all the necessary documents. The guarantee is applicable only if:
  •          The policy has completed 2 years from the date of policy inception to the date of death of the life insured
  •          The claim does not need further investigation

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