Guide for home loan insurance claim process 2021

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Guide for home loan insurance claim process 2021

In your absence, it is difficult for your loved ones to deal with your family’s problems. But they should be worried about how to make an insurance claim.

Guide for home loan insurance claim process

To improve the lives of your loved ones in your absence, you need to take certain precautions.

If you have taken a home loan insurance plan and want to make your claim process easy, let’s read this article.

Table of content

  1. When is a home loan insurance claim made?
  2. Tips for Claiming Home Loan Insurance
  3. contact your insurer
  4. Fill your claim form and provide documents.
  5. A surveyor does a damage assessment.
  6. Acceptance of your claim
  7. receiving claim amount
  8. FAQ/Frequently Asked Questions

1- When is a home loan insurance claim made?

A home loan insurance claim is made after your death. If the insured has extended his insurance plan, then the claim is made if the person is disabled. So in these cases, the claim is made.

2- Tips for Home Loan Insurance claim

If you don’t want your family to get bogged down in a pile of paperwork, it’s required to make their claim process easy.

tips for home loan insurance claim process
  • Be honest while buying a policy: Be honest while buying a policy: To be honest, while taking your home loan insurance plan. If you are suffering from any disease then you have to show them honesty.
    If the insured makes a claim on some untoward incident, and gets a disapproval from the insurer, it means that the insured has not understood the information, due to which they may have to bear the loss.
  • Update the beneficiary regularly: You have to update the correct beneficiary details while purchasing the insurance. If you have updated your parents and later got married, you can add your new spouse as a beneficiary. Your claim may be rejected when a beneficiary is not updated.
  • Understand the home loan insurance plan: It’s more required to test your home loan insurance plan. There are many reasons for exclusion from an insurance plan. So read and know the documents properly. We know, claiming home loan insurance will get a lump sum maturity amount. However, the insurer will cover the dues.
  • Talk to the beneficiary: The policy is no secret. So sit together and tell the beneficiary about the scheme. When you don’t, your family won’t be aware and won’t be able to claim for this reason. So tell them how it works, the claim process, and give the phone number, then they can call.
  • Keep documents in one place: Documents play a vital role in the process. All the documents the insurer will need to make a claim. So loved ones should keep their identity proof, address proof, documents, and other documents in a safe place. So that they can get help when you are not there.
  • Pay all premiums on time: The main reason for rejection of insurance claims is non-payment of premiums on time. If your premium is not updated, the insurance policy may get cancelled.

3- Contact your insurer

Contacting your insurer is the most required step in filing a claim. If you purchased yours through an insurer, contact that agent ASAP.

There is a time limit to make an early claim from your insurer, and mentioned in the insurance policy. Don’t make the claim intimation process overly time-consuming and cumbersome.

4- Fill your claim form and attach relevant documents

The insurance company will send the claim form only after intimation. You can also download the form by logging on to the website. And you fill it with utmost accuracy. Along with the claim form, you will need the documents.

For example, if you’ve claimed a burglary, list the stolen items and determine their value. You may need an FIR report.

5- A surveyor does a damage assessment.

Even for general insurance, the insurance company sends a surveyor to investigate the claim. The job of the surveyor will be to determine the authenticity of your claim.

The insurer starts the claim process by checking the relevant documents in the form.

6- Acceptance of your home loan insurance claim

If you have complied with the terms and conditions of the policy, then the claim is accepted.

If the insurer finds that the policyholder misled or suppressed any information, then your claim is dismissed.

Therefore, do not hide any information and provide accurate information in the offer form, so your small mistake can lead to the rejection of the claim and will make your claim unsuccessful.

7- Receiving home loan insurance claim amount

Insurance companies take 10 to 30 days to process claims. The amount is paid through NEFT.

Some amount is paid by cheque. Today insurers track claims online. So provide correct email id.

The claim filing process is convenient. Therefore, do check the claim ratio of the company.

Providing accurate information makes the claim process easy and hassle free.

Flow chart of home loan insurance claim Process

FAQ/ Frequently asked Questions

Q.1. How does a home insurance claim work?

An adjuster will inspect the damage to the home and provide a certain amount based on the terms and limits of the insurance. In case of re-damage, and get again for an additional amount.

Q.2. How do insurance companies pay claims?

Some companies pay only the actual cash value, and others pay you a receipt.

Q.3. What is the cost of home loan insurance?

If you choose a term plan of 1 crore, then its premium will be around Rs 8,000 to Rs 15,000.

Q.4. Which insurance is best for a home loan?

If you opt for a home loan protection plan, there is a reduction in the sum assured to repay the loan.
Thus, when you claim, the nominee gets the remaining loan amount. Hence term insurance is the best option.

Q.5. Where can I get home loan insurance?

If you take a loan from the bank or non-banking financial company (NEFC), they also provide home loan insurance.
Apart from this, if you do not want to take insurance from there, then you can also take home loan insurance from insurance companies.

Q.6. When will you not get the benefit of home loan insurance?

If the home loan is shifted to someone else’s name or closed prematurely, then the insurance cover ends. Natural death or suicide are not covered under the home loan protection scheme.

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