Making Claim Settlement Easy for Your Beneficiaries

When you buy an insurance policy, as a policyholder you want the life insurance company to never fall short of expectations, especially at the time of claim settlement. The sole most important purpose of a life insurance policy is to provide financial support to your family and loved ones in case of a mishap. Claim Settlement is the moment of truth, and if the experience at the moment fails, the policy becomes worthless. However, you can choose a life insurer carefully, looking at the claim settlement ratio of the company, to avoid last minute hiccups. It is the ratio that indicates the reliability of the insurer’s claim settlement process.

The claim settlement ratio of a life insurance company tells you about the number of claims paid by the insurance company compared to the total number of claims they have received in a particular year. It is measured by the equation “Total claims paid / Total claims received”. Simply put, the claim paid ratio or the settlement ratio can be one of the statistics to rely on while choosing the right life insurance company to invest with.

Canara HSBC Life Insurance has a claim settlement ratio of 99.52%^ in the financial year 2025-26. Further, Canara HSBC Life Insurance also offers easy 1 Day Claim Settlements. This quick process is called ‘InstaPromise’ which provides settlement of the death claims up to 1 crore within one day from the claim receipt, provided the policy has been in force for at least three years, and other basic requirements.

How to Make Life Insurance Claim Settlement Easy for Beneficiaries

1. Understand your policy well: First and foremost, at the time of buying the policy, you must understand what is being offered to you. Read the offer and insurance documents thoroughly and make note of the features, exclusions, and clauses so you have clear idea of the pre-requisites for making a claim. Know the rights of the beneficiary and stay informed about the redressal mechanism at your disposal.
2. Make full and accurate disclosure: It is of utmost importance that you remain as accurate and honest as possible when filling up the insurance application form. It is advised that you crosscheck and review all the information to make sure that there are no errors. Be upfront about your health conditions, and smoking and drinking habits. Always fill the form for yourself as you might also want to declare your adventurous interests and hobbies in the form.
3. Update your details periodically: Even a term life insurance is a considerably long-term commitment you make towards a better future, and things are bound to change with time. Therefore, it is advised that you update your policy periodically so it can include your latest details. For instance, any changes in beneficiary names, contact details, your habits or your lifestyle etc. must be notified to the insurance company. Also, maintain proofs of the same.
4. Keep the beneficiary informed: Once you completely understand the policy and have all the important information in place, you must educate the beneficiary. The beneficiary should be aware of the policy details, claim procedure and the sum assured, to be prepared for when the time comes. Ideally, the beneficiary should also be aware of the clauses and exclusions of the policy.
5. Maintain all documents in one place: An insurance cover is your guard against the uncertainties of life, therefore it is important to be prepared always. You should keep all the important insurance documents safely organized in one folder. Let the beneficiary know where you keep them so they can access them easily whenever required.

These few simple steps can help ensure a hassle-free claim settlement process; after all, the death benefit should reach your family when they need it the most. You can also ask your insurance provider about the availability of an e-insurance account to streamline the information and make policy information easily accessible.