TURN AROUND TIME IN INSURANCE

The full form of TAT is “Turnaround Time. TAT is a term in insurance that refers to the time it takes to complete a process or request. For example, TAT may indicate how long it takes to process and approve a claim, issue a policy, or respond to customer queries. Insurance companies aim to maintain short TATs to improve customer satisfaction and operational efficiency.

According to the IRDAI for TAT, It requires insurers to settle death claims within 30 days of receiving all documents. Failure to do so may lead to penalties or fines. Some insurers advertise faster TATs (e.g., “Claims processed within 24 hours”) as a marketing strategy to attract customers.

Most insurance companies define TAT as benchmarks for various processes. As TAT is based on industry standards, regulatory requirements, and internal goals.

 

To maintain efficient TATs, companies regularly invest in

• Automation

Automated processes (like digital claims filing) help reduce human intervention. However, TAT is leading to faster results.

• Customer Communication Tools

Digital platforms like apps, SMS updates, and email alerts keep customers informed. It helps in reducing the time they spend following up on processes.

 

Significance of TAT in Insurance

Claim Processing

Claim processing TAT refers to the time taken from when a claim is filed to when it is approved or rejected. Depending on the type of insurance (life, health, motor, etc.), the TAT for claims might range from a few hours to a few weeks.

TAT for Health Insurance

TAT in health insurance may be as short as 2-3 hours for cashless hospitalization claims but can extend to 7-15 days for reimbursement claims.

TAT for Motor Insurance

TAT in motor insurance for minor damage claims can be 2-3 days, while total loss or complex claims might take weeks.

TAT for Life Insurance

TAT for life insurance claims ranges from 15 to 30 days after all documents are submitted.

TAT Benefits in Claim Processing

A quicker claim processing TAT shows the insurer's commitment to resolving claims efficiently like;

Policy Issuance

TAT for issuing a new policy depends on the product type and underwriting complexity.

For example, basic policies like motor insurance have TATs of just a few minutes to hours if done online. Life and health policies that require underwriting might take 7-14 days.

A fast policy issuance TAT means customers can get covered sooner, reducing the risk of being uninsured in the interim. It also showcases the insurer's technological capabilities and responsiveness.

Renewal Process

Renewals usually have a shorter TAT since underwriting is minimal or automated. It can range from immediate online renewals to 1-3 business days for manual processes.

A quick TAT for renewals ensures uninterrupted coverage. As we all know it is necessary for continuous protection. However, timely reminders and fast renewals help build customer loyalty.

Customer Service and Support

TAT for responding to customer queries can be immediate for automated chatbots or take up to 24-48 hours for email queries or complaints.

Prompt customer support responses improve satisfaction and can prevent issues from escalating, leading to better customer retention.

Underwriting

Underwriting TAT varies depending on the risk assessment. TAT simplified products automated underwriting with instant decisions, while more complex policies (e.g., health or life) may take 7-14 days, especially if medical tests or documentation are required.

Faster underwriting means customers are approved more quickly, improving their overall experience. Insurers with short underwriting TAT also gain a competitive advantage in the market.

Payment Disbursal

After a claim is approved, the TAT for disbursing payments usually ranges from 1 to 7 business days. It depends on the mode of payment (electronic vs. cheque).

Quick disbursal of claim payments demonstrates reliability and builds customer trust. It also eases the financial burden on policyholders during critical times.

 

How TAT is Beneficial in Insurance?

Enhanced Customer Experience

Insurance is generally purchased for tranquility, and a shorter TAT. It ensures customers feel valued and supported. Faster processing and efficient customer service build a stronger relationship between the insurer and policyholders.

Operational Efficiency

Monitoring and improving TAT helps insurers streamline their operations. By setting clear benchmarks, companies can identify bottlenecks, reduce inefficiencies, and improve workflows.

Competitive Advantage

Insurers with industry-leading TATs stand out in a competitive market. Customers prefer companies that can deliver faster service, whether it’s in issuing policies or processing claims.

Higher Customer Retention

Consistently meeting or exceeding TAT expectations helps build trust. It encourages customers to renew policies and stay with the insurer long-term.

Reputation Management

Insurers with good TAT records tend to have better reputations in the market. Happy customers are more likely to leave positive reviews, leading to higher brand credibility.

 

Steps to Apply for a TAT Claim Process

To apply for a Turnaround Time (TAT) claim process in insurance follow the below points. The exact process can vary depending on the type of insurance and the insurance company, here is a general outline for applying a TAT claim:

1. Review the Policy Terms and Conditions

Before starting the claim process, carefully review the policy's terms and conditions to understand what is covered and the specific TAT for claims processing. The TAT may vary for different types of claims (e.g., health claims vs. life insurance claims).

2. Notify the Insurer Immediately

Action: Inform the insurance company as soon as the event triggering the claim occurs. You can notify them via:

• Online claim submission (through their website or mobile app)
• Customer service helpline
• Email or written notification

3. Fill Out the Claim Form

Obtain the claim form from the insurance company’s website, app, or customer service department. Fill out all the required details accurately, like:

• Policy number
• Details of the incident (e.g., accident, illness, death)
• Personal information of the policyholder

4. Submit Required Documentation

Collect all the necessary supporting documents as specified by your insurer.
This may include:

• Medical reports and hospital bills (for health insurance)
• FIR or police reports (for car or theft claims)
• Death certificate and nominee details (for life insurance claims)

5. Track the Claim Status

After submitting the claim, regularly check the status. Many insurers provide online tracking systems, SMS notifications, or email updates. You can also call customer support to check on the progress.

6. Follow Up with the Insurer

If the claim processing exceeds the insurer’s stated TAT, contact the company immediately to inquire about the delay. Some insurers have escalation processes where unresolved claims can be prioritized for faster resolution.

7. Receive Claim Payout or Resolution

Once the claim is approved, the insurer will notify you and initiate the payment process. The payout TAT may differ based on the type of claim and payment method (direct bank transfer, cheque, etc.). Usually, payouts are made within 7 days of claim approval.

8. Escalate if Necessary

If the insurer fails to meet their TAT commitment, you can escalate the issue to higher authorities within the insurance company. Additionally you can file a complaint with the Insurance expert or the IRDAI if applicable.

 

4 Key Tips to Ensure Faster TAT in Claim Processing

Provide Accurate Information

Any mistakes in your claim form or supporting documents can cause delays. So always double-check all details before submitting the documents.

Keep Documents Ready

Ensure that you have all required documents available before starting the claim process. It will help you to avoid delays caused by incomplete submissions.

Choose Digital Submission

Many insurers offer faster processing for claims filed online through their portals or apps.

Regularly Monitor Your Claim

If you feel the TAT is approaching its limit, a quick follow-up with customer support can usually expedite processing.

 

Conclusion

Applying for a TAT claim process involves submitting a claim efficiently. It provides accurate documentation. TAT ensures the insurer processes your request within the specified time frame. Staying proactive throughout the claim process with TAT, ensure your claim is processed quickly with no unnecessary delays. If the insurer fails to meet the TAT, you have the right to escalate the matter to relevant authorities for resolution.

 

FAQs on TAT in Insurance

Q1.  What is the full form of TAT in Insurance?

Ans:  The full form of TAT is Turnaround Time

Q2. Why TAT is Important in Insurance?

Ans: In Insurance, TAT refers to the time duration an insurance company takes to complete a specific process like Claim processing, policy issuance, or custom query resolution.

Q3. What is TAT meaning in Insurance?

Ans:  TAT is important as it ensures that insurance processes like claims and policy issuance are handled promptly. Keeping short TAT leads to better customer satisfaction, as clients get faster services.

Q4. Does every insurance company have a TAT?

Ans: Yes, every insurance company defines a TAT for various processes, including claims, policy issuance, and customer service, to ensure timely service delivery.