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If you have ever filed an insurance claim, you have probably wondered, “How long will this take?” That waiting period can feel endless, especially when you really need the money and support. This is where something called Turnaround Time (TAT) comes into play.
In simple words, the full form of TAT is Turnaround Time. It is the amount of time that an insurance company takes to process your request, whether it is issuing a policy, approving a claim, or handling any other service. The shorter the turnaround time, the happier the customer.
In this blog, we will explain what turnaround times mean in insurance, why they matter, and how they can affect your overall experience as a policyholder.
Rules of Turnaround Time (TAT) in India
The Insurance Regulatory and Development Authority of India (IRDAI) sets rules for how long insurance companies can take to complete certain tasks. For example, if a person passes away, the insurance company must settle the death claim within 30 days of receiving all the required documents. If they do not follow these rules, they may have to pay a penalty.
Many insurance companies also use their fast TAT as a selling point. You might see ads saying things like “Claim settled within 24 hours!” to attract customers.
Importance of Turnaround Time (TAT) in Insurance
TAT is very important in the insurance industry because it reflects how fast and efficiently a company serves its customers. Let’s look at how TAT matters in different areas of insurance:
1 Claim Processing
- Health insurance: Cashless claims during hospital stays can be approved in 2 to 3 hours, while reimbursement claims (where you pay first and get money back later) may take 7 to 15 days.
- Motor insurance: Small damage claims usually take 2 to 3 days, but bigger claims, like total loss, can take a few weeks.
- Life insurance: After all documents are submitted, claims are usually settled within 15 to 30 days.
Faster claim processing helps customers feel supported and builds trust in the insurance industry.
2 Policy Issuance
Simple policies, like motor insurance, can be issued in just a few minutes or hours if done online. More detailed policies, such as life insurance, which require additional checks may take 7 to 14 days. Quick policy issuance means that the customers get faster coverage without any problem.
3Renewals:
Renewals are usually faster because they don’t need much checking. You can do online renewals quickly, and manual renewals may take 1 to 3 business days. By giving fast renewal services, companies can build customer satisfaction and loyalty.
4 Customer Support:
The response times can vary depending on how you contact the company. If you use a chatbot, you will get almost instant replies, and if you use email or calls, it will usually take between 24 to 48 hours. Quick replies make customers feel valued and satisfied.
5Underwriting:
Underwriting is the process through which an insurance company checks your details before issuing you a policy. For simple insurance products, this can be done instantly with the help of an automated system. But for more complex policies, like life or health insurance that need medical tests or extra documents, it can take about 7 to 14 days.
6Payment Disbursal:
Payment disbursal means giving the approved claim amount to the customer. After a claim is approved, the insurance company usually makes the payment within 1 to 7 business days, depending on the payment method. Quick payments help reduce financial stress for customers and build trust in the insurance company.
Benefits of TAT in Insurance
- Give Better Customer Experience: When the insurance company works fast, customers get quick service. This makes them happy and shows that the company values their time.
- Offers a Smooth Working Process: Setting clear time goals helps the company find and fix any delays. This makes their work faster and more organised.
- Brings More Customers: Companies that have shorter TATs can attract more customers. People prefer to choose insurance companies that settle claims quickly.
- Builds Customer Trust and Loyalty: When an insurance company keeps its TAT promises, people tend to trust it more. This encourages them to renew their policies with the same insurer.
- Builds a Good Reputation in the industry: If an insurance company provides fast and reliable services consistently, it builds a strong image. A company known for quick responses earns a good name in the market.
Benchmark and Factors That Affect TAT
Insurance companies set their own TAT goals, which are based on industry rules, government requirements, and their internal targets. To make their processes faster, they often use:
- Automation: Using technology to handle tasks like online claim filing helps save time and reduces errors.
- Customer Communication Tools: They also use mobile apps, SMS alerts, and emails to give proper updates to the customers.
Steps to Apply for a TAT Claim Process
- Step 1 Read your policy carefully to understand what is covered and how much time (TAT) the company takes to process claims.
- Step 2 As soon as something happens, tell your insurance company through the website, mobile app, helpline, or email.
- Step 3 Complete the form with correct details, such as policy number and more.
- Step 4 Attach all the required papers, like medical reports, police FIRs, or a death certificate, depending on the claim type.
- Step 5 Keep checking the claim status online or contact customer care to know the progress.
- Step 6 If your claim takes longer than the mentioned TAT, contact the company for an update.
- Step 7 Once your claim is approved, you will usually receive the money within 7 days.
- Step 8 If the company does not follow the TAT or delays without a reason, you can report the issue to higher authorities or the IRDAI.
Conclusion
Turnaround Time (TAT) is an important part of the insurance process. It shows how quickly and efficiently an insurance company helps its customers, from issuing policies to settling claims. As a customer, it is important to know the TAT of your insurance provider so you can plan better and avoid delays. So always check the TAT of the insurance company to choose the best for you.
FAQs
The full form of TAT is Turnaround Time. It is the time an insurance company takes to complete a task, like issuing a policy or settling a claim.
TAT is important because it shows how fast and efficient an insurance company is. A shorter TAT means faster service and happier customers.
You can check the status of your claim through the company’s website, mobile app, or customer care helpline. They will tell you how long it might take.
If the insurance company delays your claim without a valid reason, you can contact their higher authorities or file a complaint with the IRDAI (Insurance Regulatory and Development Authority of India).
They can use technology like online claim filing, automation, and digital communication tools to make their work faster and reduce delays.
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