Transforming Insurance Challenges into Solutions: A Guide for Borrowers

Understanding the Common Challenges in Insurance Claims

Underinsurance is widespread. Policies are often issued only to cover the Bank’s loan exposure, not the borrower’s full business risk. This leaves customers vulnerable when a major loss occurs.

Risk assessment is overlooked. Few Banks assess the true insurance needs of their clients. The policy becomes a compliance formality rather than a protective tool.

Claim support is minimal. When a loss occurs, surveyor requirements multiply. Insurers delay decisions, leaving borrowers alone in a tough situation. Most Bank staff are not trained to handle claim complexities, and valuable time is lost.

Financial stress builds quickly. While insurance claims can take months, loan EMIs remain due. The borrower faces pressure from both sides—insurer delays and Bank recovery processes.

The Result of These Challenges

Borrowers who trusted their Bank’s insurance product often feel abandoned at the time of crisis. The very cover meant to protect both the Bank and the client frequently fails in its purpose.

A Smarter Way Forward

The solution lies in aligning the claim process with banking realities. Upon admission of liability by insurers, on-account payments should be released within 15–30 days. This approach gives borrowers the liquidity they need to continue operations and service EMIs. It also helps Banks avoid making the account Non-Performing Assets (NPA).

Banks should ensure adequate risk-based insurance, not just coverage of their loan exposure. Basic training in claims handling for Bank staff can make a significant difference in monitoring insurers and ensuring timely settlements.

How We Can Help?

At Expert Claim Solutions India Pvt. Ltd., we bring over 35 years of expertise in insurance claim settlement. We assist Banks and borrowers by:

• Drafting better agreements with insurers to guarantee timely on-account claim payments.

• Designing risk assessment processes to avoid underinsurance.

• Supporting clients during the claims process, ensuring faster settlements and reduced NPA risk.

  
  

The Win–Win Outcome for All Parties

The benefits are clear.

For Borrowers: They receive genuine support, survive the crisis, and can repay loans without default.

For Banks: They prevent NPAs, build stronger customer trust, and enhance their reputation in Bancassurance.

At the end of the day, insurance is meant to protect—not just to sell. With the right approach, Banks can transform their Banca portfolios into true value-adding partnerships for both themselves and their clients.

Conclusion: A Call to Action

Navigating the insurance landscape can be daunting. But we can turn rejections into approvals. We can help you understand your rights and options. If you’re facing a denied insurance claim, don’t hesitate to reach out. Together, we can find a way forward.

Vinay Kumar Nerella

Managing Director

Expert Claim Solutions India Pvt Ltd.

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