With terrorist attacks getting more frequent in the country, insurance companies are introducing a mechanism for processing speedy claims on this.
NEW DELHI: With terrorist attacks getting more frequent in the country, insurance companies are introducing a mechanism for processing speedy claims on this.
"In the case of the Mumbai train blasts, we had settled claims within 24 hours of receiving basic documents. We have a process of expediting claims, requiring less
documentation, in the case of such natural or man-made calamities," says Gaurang Shah, Managing Director, Kotak Life Insurance.
"We have a range of products, all of which provide insurance cover under all circumstances, including terror attacks, but excludes suicide in the first year," he adds.
At least 183 people were killed and 295 injured in the Mumbai terror attacks at 10 places, including two five-star hotels.
Bajaj Allianz marketing head Akshay Mehrota says his company tries to settle cases within 24 hours of receiving the documentation.
"Normally, the final settlement takes a week but in such cases we ensure the cheque is delivered in 24 hours. Anyone who has suffered due to terrorist attacks can call us
and get the insurance money," he says.
A leading life insurance company has recently advertised through e-mail that it has launched a speedy claims mechanism for legal heirs of those who lost their lives, by
calling a toll-free number or by sending SMS. And all the processing will be done within a day.
"After 9/11, most companies refused to give cover against terrorism. General insurance companies then formed a pool, into which the premium collected by the industry was
put," says Vineet Vidyarthi, Principal Officer, Almondz Insurance Brokers Ltd.
Vidyarthi says sometimes insurance companies deny compensation citing various terms and conditions. According to Insurance Regulatory and Development Authority (IRDA) norms, general insurers should form a pool for terrorism insurance. Any terrorism-related insurance claim can be settled by using funds from this pool.
General insurers offer terror insurance as an adjunct of fire insurance. "We try to clear the account within 24 hours of the claim. And in this kind of cases, we don't even ask for death certificates," an insurance executive said.
Apart from Mumbai, in the last one year, the country has seen many terror attacks. Many people have been killed in the ghastly attacks in Assam, Malegaon, Delhi, Ahemdabad and Hyderabad.
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