Following the Insurance Regulatory and Development Authority of India (IRDAI)’s diktat to prioritise and expedite claims processing for victims of the Odisha train accident, several insurance companies have announced measures to reach out to policyholders and simplify the process.

“Claims processing is a document intensive process. When catastrophes happen, insurers process claims expeditiously to give some relief to the families. This could be through deploying more people and even waiving some documentation,” said Vighnesh Shahane, MD and CEO of Ageas Federal Life Insurance.

Several insurers such as LIC, ICICI Prudential Life, Bajaj Allianz Life, IndiaFirst Life, SBI Life, Liberty General and Bajaj Allianz General Insurance have announced measures such as minimal documentation, dedicated helplines for claim-related inquiries and setting up a special task force. Most of them said they will rely on the list of deceased passengers issued by hospitals, government authorities or the police instead of insisting on death certification. 

Claims processing

While claim intimations have not yet started trickling in, insurers have initiated mapping the list of passengers with their own database against railway ticket information such as name, age, gender and contact details. On receiving confirmation from relevant authorities, they will start reaching out to nominees and family members, companies said.

“Average intimation period for death claims is usually 4-5 months for individual policies. Here it should be earlier, based on government notification or due to our proactive approach, and hence we believe it should be anywhere from a month to two months,” said Atri Chakraborty, COO at IndiaFirst Life Insurance.

“There are multiple policies in terms of government schemes (PMJJBY), individual retail policies, and people covered under group policies. So, identification may take a little time, but we are working to expedite as much as possible,” he added.

Further, because the accident pertains to policyholders from various States, insurers have appointed multiple investigators in different states, and have deployed special resources on-site of the accident for immediate resolution and assistance, they said.

Regulatory push

“As an industry, we have created a dedicated helpline and digital capabilities so that it is easier for customers or their family members. Insurers have allocated specialized teams to expedite such claims and ensure a seamless claim process,” said Tapan Singhel, Chairman of General Insurance Council, and MD of Bajaj Allianz General.

In a note to heads of companies, the IRDAI had asked insurers to immediately contact district administration railway authorities, begin the claims process “suo moto” and expedite and simplify the claims process.

In a separate circular on Monday, insurers have been mandated to designate a dedicated helpline, publicise details of offices or special camps, process and disburse claims proactively, and publish all this information and data relating to claims on their website.

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