Dear Sreekant
Thank you for your advice n blogs on term insurance. Recently I was reading a lot about term insurance. But I got no data regarding claim settlement for claims of higher amount like 1 crore. I learnt that though claim settlement ratio of lic and others are high they are mostly for low claim amounts. I was planning to take a term insurance for 1crore n I was confused between HDFC n Max life. Premium of Max is less but a friend of mine said that as because Max life is not a banking company so it's claim settlement for higher amount may not be good.
Kindly give your valuable suggestions
Regards
D Sarmah
2 Answers
Hi,
Yes, unfortunately the annual report (which has claim settlement data) released by the IRDA does not have claim ratio data on Product wise (like Endowment, money-back or Term insurance).
I believe that its high time that they come up with product-wise claim settlement data which can be very useful to policyholders / prospective insurance buyers.
However, kindly note that claim settlement is not THE FACTOR any more when buying a life insurance plan.
" As per the recent amendment to Section 45 of the Insurance Act, If your policy is 3 years old, no matter what happens, the life insurance company will not be able to deny the claims. So, your life insurance company has only 3 years in hand to reject the policy based on any mis-representation or mis-statement. Once 3 policy years are completed then the life insurance company has to settle the claims and can not reject them."
So, suggest you to pick a term plan from an insurance company of your choice, disclose all the required details in proposal form honestly and accurately.
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