Process of Insurance Policy

Insurance policy is the most common subject which almost all age groups are talking about. Since there are various types of age group, a variety of insurance policies are sold in the market. Understanding the process of issuing an insurance policy and claiming the insurance policy in the Insurance industry is very important. Here is how the process of the insurance policy works:

Choose a policy that suits you:

There is end number of companies offering an end number of insurance policies in various fields like health, life, fire, jewellery, and the list goes on. In order to choose the right insurance policy for yourself, you need to check all the terms and conditions mentioned within the policy and see how it is beneficial for you. If the term and condition along with the premium payment cycle are well within your determined target range, then you can opt for the specific policy.

Insurer checks the risk management factors:

After you apply for the desired insurance policy, the insurer or the insurance company then cross-check whether or not you are eligible for the policy with the risk management factors analysis along with other economic factors. After all the risks are cross-checked and analysed, the insurance company will declare you as eligible for the insurance policy.

Insurance policy is successfully generated:

Since all factors are now analysed and the policy has been further passed down to the company for premium payment, it means that your policy has been successfully generated. All you need to do is choose the payment method, i.e. lump sum payment or instalments payment for the premium.

Premium paid:

According to the chosen payment method, the life of the insurance policy is determined. The insurance policy can last up to 10 years and can be claimed within the period of 10 years and after (during the grace period).

Insurance claim:

To claim the insurance money when damage occurs, you need to contact the broker or the insurer first. You need to give the details of how the damage occurred and how you want to claim the insurance for the loss. The insurer then will initiate an investigation team that will help in understanding the damage in detail and will determine whether the payment is supposed to be made or not and how much is supposed to be paid.

With the rise in fake accidents, the process of an insurance claim can take a long period of time. Therefore, thorough details of the accident, damage and loss are supposed to be provided to the insurance company so that the process for the claim becomes easier than ever.