Private life insurer IDBI Federal has announced an initiative to settle death claims in eight working days  under the initiative ‘8 Days Claim Settlement Guarantee’.

The initiative will be effective from July 8 onwards and will only be applicable for claims filed after this date. The company has announced that it will settle death claims in just eight working days. In case it fails to do so, the company will pay an interest of 8 per cent during the year, calculated on a daily basis, on the death benefit for each day of delay beyond eight working days.The nominees can also track their claims status through the company Web site, 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 eight 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 two 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 per cent. Eighty per cent of the company’s claims were settled within 60 days in FY 2013-14. The company’s repudiation ratio came down to 5.47 per cent in FY 2013-14 from 16 per cent recorded in the last financial year.

Related Topics
comment COMMENT NOW