PSU insurers set hubs to speed up claims
In case you have bought a policy from any of the four state-owned insurance companies, your claim settlement will take lesser time than it used to take earlier because back-office processes are being overhauled, reports Falaknaaz Syed.india Updated: Sep 25, 2009 23:38 IST
In case you have bought a policy from any of the four state-owned insurance companies, your claim settlement will take lesser time than it used to take earlier because back-office processes are being overhauled.
The state-owned non-life insurance companies known for delays in settling claims and poor service have introduced a claims hub in every city. They have also revamped their business operations on the lines of private insurance companies.
The four public sector undertaking (PSU) insurers that control 60 per cent of the market — New India Assurance, Oriental Insurance, United India Insurance and National Insurance — have introduced a vertical system under which dedicated branches will be there in each city to serve one line of business.
Each city will have one dedicated office called a claims hub for settling claims, one branch office to get retail business, one branch for corporate insurance covers, and an office exclusively for training.
For instance, New India Assurance, which has four regional offices in Mumbai, will have two as claims hubs. Each city will have at least one claims hub.
“The claims hub will be the claim sanctioning authority and will ensure faster claims settlement,” said a senior New India official who did not want to be identified.
According to M Ramadoss, Chairman-cum-Managing Director of Oriental Insurance, “The turnaround time for settling a motor ‘own damage’ claim was 72 days in Delhi which we have been able to reduce to 22 days.”
He said policyholders had the option of making claims from the office where it was issued or to the claims hub in the city.
Last year, the finance ministry had asked the four insurers to appoint consultants for revamping their operations to control underwriting losses, increase efficiency and improve service delivery.
Ramadoss said that the company currently has 12 claims hub across the country dedicated for motor ‘own damage’ claims and will open eight more such centres.
Similarly, it has 16 third-party motor insurance service centres that will be increased to 42 by the year-end.