Complete Guide to Property Insurance Claims - Process, Documents Required and Tips

 If you have experienced damage or loss to your insured property, applying for a claim can be quite daunting but rest assured, it's quite an easy process if you have done your research and are cautious and vigilant throughout the whole claim process

Guidance on Property Claim Procedure in India

1. Report an FIR to the nearest local police station

The first step towards an insurance claim is reporting the insured disaster with the police. An FIR registered number would be required to validate your claim process.

Make sure you don't tamper with the evidence, unless it's an absolute emergency, refrain from touching anything in your property. Wait for the police and the insurance surveyor to inspect the situation.

2. Inform your property insurance provider

The second phone call you need to make is to your insurer, a helpline number would be mentioned on their website or on your property insurance policy document. Describe all the details to the executive and make a note of their identification details to maintain a record of your conversations with your insurer. (This might just help you in disputing insurance claims and payouts)

3. Have the insurance surveyor assess the situation of your property

A surveyor is an official assigned by the insurance company, to inspect the accident location or crime scene and assess the damage. Once the surveyor is done evaluating your property, a compiled report called the “schedule of works” is submitted to the insurer.

Be honest with the surveyor about all the events that took place during the accident/disaster. In settling property insurance claims, being honest is the only way to get you through. Don’t even hide any details that you think are relevant for the surveyor to know.

4. Fill the claim application form and gather your documents

Every property insurance provider has their own deadlines of applying for a claim, read your policy document to know what's your time limit and make sure you don't cross that.

Be cautious while filling out the property insurance claim form, recheck even the address, and contact number you have mentioned. Even the smallest of mistakes can cause a delay in processing your claim.

Here is a list of documents you might need according to your circumstances-

Fire/Flood/Cyclone/Storm claim

• Claim form

• First Information Report (FIR)

• Media reporting of the incident

• Fire Brigade Report (in case of loss/damage caused by fire)

• Meteorological report (in case of loss/damage by Flood, Storm, Cyclone)

• Title deed validating the ownership of the property (For Building Cover)

• Details of fire extinguishing equipment

• A list of Repair/ Replacement items

• Receipts of any expenses incurred by you (Rent for alternate accommodations, meals, other daily expenses, etc)

• If alternate accommodation is required, the proof of the confirmation and the     receipts of expenses paid by you need to be submitted.

• Evidence collected of the disaster/damage

Burglary claim

• Claim form

• Statement of loss confirming the items stolen

• First Information Report (FIR)

• Loss estimate and basis of reaching the loss estimate (Consult a legal      authority or professional to assess the value)

• Original Invoice of lost items

• A Non-traceable Certificate issued by Police authorities

• A Media or Newspaper coverage of the incident, if any.

• Letter of indemnity

Other documents (Applicable for all claims)

• KYC documents - Address proof and Identification documents like passport, pan card, aadhar card for all claims exceeding INR 1,00,000.

• Canceled cheques of your bank account in your (policy-holder) name for enabling an NEFT claim settlement.

• Rent agreement, if the house was given out for rent

• Legal pinion if applicable

• Personal injury treatment receipts

PS - Depending on the nature of the claim, additional documents may be required.

5. Collect evidence

Insurance companies all over our country have become even more cautious about paying out claims and the only thing one can blame is, the prevailing practice of fake claim requests in India.

To avoid any such accusations, while you're at the crime scene, collect all sorts of evidence you can, take videos and pictures of the damage, collect contact details of witnesses, document the cause of the fire, etc.

Although, collecting evidence will also help you strengthen your case, which can avoid any further investigations and delays.

6. Collect all receipts of expenses you have paid for

If you need to arrange accommodation for yourself and your family because of the damage caused to your property, the expenses made for your stay, meals, and other daily essentials will be reimbursed by your insurer.

Just make sure you collect all the receipts you'd like to get compensated for.

Your insurer can pay you out by transferring money to your account or replacing the things you have lost during the disaster.

If the claim amount offered is not what you expected and you think you deserve more, don't accept the offer, it's not the final ultimatum!

Our experts at Insurance Samadhan are here to help you with any property insurance-related issues you are facing. Whether it's a claim offer that doesn't satisfy you or your property claim has been rejected, contact us and we will be happy to assist you through it all!

7 Things to Keep in Mind while Buying Home Insurance in India

 

As soon as you purchase the home of your dreams, a sense of triumph settles in. However, those feelings can turn into the opposite if anything tragic happens to your dream home.

This is why the concept of insurance was introduced and is immensely highlighted and advised throughout decades by financial experts. Insurance enables us to safeguard the things we care about and work hard for, hence, a home insurance policy is extremely important to invest in.

Broadly, a home insurance policy is divided into two types of coverage- Damage caused to the structure and loss of content (personal belongings). In a policy that covers only the structure, it would protect the structure of the building from any damage caused by natural calamities/fire/vandalism/fallen trees/remains falling from an airplane crash.

In a policy that covers the loss and damage of your personal belongings, your policy will protect you from theft/vandalism/fire/floods/earthquakes.

It would be wise to invest in a policy that covers both these aspects (Structure+Content) which is commonly called a comprehensive policy. While deciding on such policies, it is advisable to choose the ones most suitable to your home and that covers mostly all aspects, as this would increase the value of your coverage and will also give you the best value in return.

Bear this Things in Your Mind Before Buying Home Insurance in India

1. Due diligence (understanding insurance and your needs)

This is the most important step to take before you invest in any kind of product. Knowing what the product is and what it does for you, will put you in a better position to make decisions for yourself.

To make the right choice, you need to know what an insurance policy is, what it protects you from and what is the adequate amount of coverage you need for your home (assess your property value to know how much coverage makes sense for you)

To calculate the correct value, you can even approach an experienced home builder who could tell you how much your home is worth and how much it would cost you to replace/repair your belongings. (if you renovate your home after you purchase a policy, get your home value assessed again as new construction increases your home value)

Evaluate your needs and purpose of investing in insurance and choose your home insurance policy accordingly. (you can hire insurance experts who could tell you what perils you should protect yourself from)

2. Compare Policies

Just like you try on multiple jeans before you buy the one that fits you perfectly, Insurance policies also need to be treated the same way. There are multiple sites online where you could compare home insurance policies and these are some pointers that you should keep in mind while comparing- policy should be of a reputed insurance provider (the financial strength and claim settlement ratio of the insurer matters), coverage, exclusions, and premiums.

Just make sure you do your research thoroughly to make a thoughtful and wise decision.

3. Terms that are important to know and some guidelines to follow (Unusual property insurance cover, Building cover, Contents Cover and deductibles)

A. Unusual Property Cover - if the property you are trying to cover has a unique feature (roof, attic, etc.) or it’s a mill/listed building or any other property having an unusual characteristic will need a special cover whose premiums are usually higher as the risk would be higher too.

B. Building Cover - If you are intending to purchase a building cover (covers only the structure) ensure that your building is covered for the rebuild value and not the current market value. Rebuild value is the entire cost of reconstruction and not the current market value.

C. Content Cover - If your policy covers your personal belongings, make sure you have made a list of every one of them (from electronic gadgets to clothes).

Once you know what you have, make a list of your contents that can be covered in your policy (Expensive items might not be covered in a home insurance policy although, to protect them, you can invest in a separate policy or add a rider to your home insurance policy.)

Another wise thing to do while you purchase such a policy is to invest in the “new for old” cover for your belongings, which means, if anything happens to your belongings, they will be replaced by new ones instead of getting reimbursed.

Lastly, always remember to calculate the value of your belongings accurately. This might leave you underinsured if you have calculated the value of your belongings less and overinsured if you have overvalued them, because of which the cost of investing in a home insurance policy will increase unnecessarily.

D. Deductibles - Deductibles are a certain amount of money of the claim amount that the homeowner needs to pay, while the rest of the claim is paid by the insurer.

It is important to be aware of the deductibles while purchasing a policy so that you are prepared to pay for it while filing for a claim (Instead of standard deductible amounts, you can even choose higher deductibles to reduce your premium)

4. Actual cash value and Replacement cost

It’s important to know the type of coverage you are going to receive as your home can either be covered for the actual cash value or the replacement cost.

Actual cash value is the amount of money you will receive to repair or replace your item after deducting the depreciation.

Whereas, replacement cost is the amount of money you will receive to repair or replace the item without deducting any depreciation.

5. Earn Discounts

The sole purpose of an insurance policy is to protect you from tragic incidents and the sudden financial burdens that come with it. Although, if you help minimize the risk of these tragic incidents, insurers will help you earn a discount on the cost of purchasing policies. (lesser premiums or more coverage)

Here’s how you can earn discounts.

1. Fire alarms and extinguishers

2. Sprinklers to take out fire

3. Security alarm for robberies/vandalism

4. Well  maintained stairways, sidewalks, fire exits, etc.

5. If you live near a police station or fire brigade

6. If you have not filed for a claim in the past one year from the purchase of your policy, inform your insurer and they might discount your premiums.

6. Read the policy carefully and be cautious while filling the application form

Reading any document that you need to sign on is an advice that has been given time and again by all kinds of well-wishers and no matter how important it is, a lot of people still don’t practice this habit and end up being a victim of fraudulence.

Hence, read your home insurance policy document carefully so that you know everything about the product you are investing in and there are fewer chances of someone taking advantage of you. In other terms, avoid being a victim of different insurance frauds.

Even while filing an application form, be cautious and authentic about the information you give out to avoid any scope for mistakes from your end which will lead to further investigation and delays in claim processing.

If the insurer identifies the inauthenticity of your application, they would most likely accuse you of faking your way to receive policy benefits.

7. Add on covers/riders

Sometimes, investing in a standard home insurance policy might not be enough. Adding a rider to your policy helps you increase the coverage that would enable you to protect your precious belongings too. For example - The expensive items (Jewellery, electronics, etc) that you want to safeguard from these dangerous situations can be protected by adding a rider to your standard insurance policy.

Buying a home is a huge accomplishment and I'm sure you’d want to protect under any circumstances. If you have been a victim of misselling or claim rejections, it is quite difficult to see the light ahead, but our experts at Insurance Samadhan are here to help you through it all! 

Are you Suffering from Insurance Claim Rejection for Covid-19 Hospitalization? Know What You Can Do with Your Insurance?

 It’s a pandemic situation and hospitals are working to their full capacity all over the world. The number of health claims are rising every day. While the insurance regulator (IRDAI) has asked insurers to expedite claims settlement for COVID-19 claims, there have been some instances of the claims being rejected.

Insurance Regulatory and Development Authority of India (IRDAI) will seek detailed report on Insurance claim rejection in case policyholders complains as suggested in their guidelines to the Insurer. They will have to explain the reasons why the claim has been rejected. The insurer has been asked to be sensitive to the customers in these times.

In many instances the cashless claim is rejected and the customer is asked to pay the hospital bills which are amounting to an average of 2-3 lacs.

Steps to take if the Cashless Claim is Rejected in Hospital

1. Submit the documents for reimbursement: You need to submit all documents to the insurance company to apply for reimbursement. This may be a cumbersome process where you need to have all prescriptions, tests conducted, medicines bills and other miscellaneous bills arranged in a proper sequence for the insurance company to pay the bills. The reimbursement form needs to be filled. If submitted properly the insurance company will settle the bill in 30 days.

2. Answer all query: If the company raises some requirement in your case then the same needs to be arranged from the hospital and submitted to the company. They would then settle the claim

3. Write to the grievance cell: If they reject the claim, you need to raise the concern with the insurer grievance cell and seek clarifications. If they give you valid reasons and the same is validated by you, the claim will not be payable. But if the reason is not valid, you have to argue with the officer to get your claim. This requires technical assistance to answer in the language the officer understands and can be challenging at times.

4. Write/ Call to IRDA: You can also raise the concern to IRDA if you feel that you have been cheated by your insurer. Please note that IRDA only facilitates the grievance and do not directly interact with the customer. They send your complaint to insurer and get the response from Insurer. They do not call customers. So, if you get any call from IRDA note that there is some fraudulent activity.

5. File the case with the Ombudsman: The ombudsman helps in mediating the claim and require proper documentation of the compliant. You need to submit the complete set of documents for the Ombudsman to accept your complaint and schedule a hearing on your case. Ombudsman requires the customer presence on the date of hearing to decide on the case

6. File the case in consumer court: You may also consider consumer court which again will require complete documentation to be submitted to get the hearing dates. Here your lawyer can attend the hearing and your presence may not be required in all hearings

Insurance Samadhan has also stepped up to help claim rejection in case of Covid-19 claim rejection, you may seek waiver of the registration charge of Rs 500 in such cases. We shall work on your case and do all the documentation and if required will go through all the steps to help you get your genuine claim amount.