According to Insurance Regulatory Authority of India's data, private life insurance companies in India not approved more death claims as compared to Life Insurance Corporation of India in FY14. LIC paid nearly 99 percent of all death claims whilst all private insurers together paid around 92 percent of all death claims submitted in FY14. Also, LIC successfully maintains a low percentage of death claim denials. The records of the private insurers differ widely across the 23 operational organizations and some of them have impressive death claim payment ratio about 95 percent and one smaller organization having paid just 76 percent of total death claims as against 7.6 lakh death claims filed on them is good.
Private insurers have not approved 10,000 claims even though the total death claims filed with them were around 125,000. The main purpose of buying life insurance policy is offering protection for the loved ones in case breadwinner's death and rejection of death claims would contradict this main purpose. But, it doesn't mean that people should purchase online LIC plans. In the previous year, a large number of death claims were rejected. Therefore, customers should know that why private insurers have rejected more than their proportionate share of death claims. Insurance advisors suggest buyers to understand reasons of death claim rejection. Incomplete or incorrect disclosure is the main reason behind denials of death claims.
Majority of denial cases are in respect of death claims registered within the initial two years after the policy inception. Therefore, LIC have a bigger benefit and the older among the private players like ICICI Prudential Life and HDFC Standard Life also noted good ratio of claim payment. These private insurers develop steadily as their size grows and they successfully spend more time in the industry. The newer insurers surely suffers because of the less denominator impact and a small number of rejection can result to a bad ratio as the number of death claims registered by the company is also small.
Most death claims are thoroughly investigated, so private insurers have more rejection because of the above mentioned reason. In this case, the average sum insured is comparatively higher than Life Insurance Corporation of India. All such above mentioned reasons are necessary to understand because the buyer adoption of online life insurance policies where people concern everybody get from them is whether they can prefer online life insurance products from an organization which has a high ratio of death claims. In case insured has mentioned complete and detail disclosures regarding policyholder's financials, habits, health and occupation, then person can be rest assured which insured's claim cannot be rejected.
In fact, it is good to take guidance from insurance professionals while filling a claim form to avoid rejection. Those who do not make complete disclosure of all material facts should know that the chances of their claim approval are very less. So, avoid fraudulent or hiding information while applying for a life insurance policy online. Now, when you plan to buy any insurance online, then always give your proper and correct details to avoid hassles in the future.
Sarika Kodag helps readers to select the best Insurance Plan as she has vast experience in this sector. She always looks out for subjects related to insurance and writes informative yet interesting articles on investing, saving and financial planning. Her forte is to comparatively analyze and suggest different insurance policies to her readers. She provides knowledge about various investing options and make reader aware of current news about insurance field. So, they can use it to improve their future. She specializes on topics about health, car and life insurance. In her free time, she writes on business and travel insurance as well. Also, she advices many people including her friends, family and relatives who require wealth management solutions. All the best to you while comparing insurance and I hope that you get a beneficial deal by visiting this space regularly. Most of the people who got help from her feels that with her advices, process of purchasing insurance became easy. Visit http://www.policyboss.com for more details.