Turn Around Time (TAT) in insurance defines how quickly insurers complete services like policy issuance, claims, and grievances, directly shaping customer experience. Understanding TAT expectations, regulatory safeguards by IRDAI, and policyholder responsibilities helps ensure faster, smoother, and more transparent insurance outcomes.
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Turn Around Time (TAT) refers to the standard time an insurer takes to complete a specific service request, such as policy issuance, endorsements, claims processing, or grievance resolution. Insurers tend to keep shorter TAT, meaning faster decisions, quicker claim settlements, and an overall smoother customer experience. Insurers’ internal service standards define TATs and, for certain processes, are guided by IRDAI regulations to protect policyholders’ interests.
What Does TAT Mean in Insurance?
In simple terms, TAT is the time taken to finish an insurance-related task from start to finish. It is calculated from the date the insurer receives a complete request or full set of required documents to the date the service is resolved. If documents are missing or incorrect, the TAT may pause or get extended until the requirements are fulfilled.
Why Is TAT Important for Policyholders?
Turn Around Time (TAT) directly impacts how quickly and smoothly an insurance service or claim is completed for a policyholder.
Faster TAT ensures quicker claim settlements, which is crucial during medical emergencies or after accidents
It reduces waiting time for policy issuance, renewals, and endorsements
Shorter TAT improves transparency and builds trust in the insurer
Efficient TAT leads to a better overall customer experience and less follow-up stress
Types of Turn Around Time (TAT) in Insurance
Turn Around Time (TAT) in insurance varies depending on the type of service requested by the policyholder. Each process has its own workflow, documentation needs, and internal checks, which determine how long it takes to complete.
Policy Issuance TAT
Endorsement TAT
Claim Intimation TAT
Claim Processing & Settlement TAT
Renewal & Portability TAT
Grievance Redressal TAT
Policy issuance TAT refers to the time taken to issue a new policy after proposal submission, underwriting, and premium payment. Simple policies like motor insurance are usually issued within minutes to a few hours, while complex policies such as life insurance may take 7–14 days due to detailed checks.
Endorsement TAT covers changes such as name correction, vehicle detail updates, nominee additions, or address changes. Most simple endorsements are completed within 1–3 working days, while documentation-heavy changes may take slightly longer.
Claim intimation TAT is the time taken by the insurer to acknowledge and register a claim after the policyholder informs them. In most cases, claim acknowledgement happens within a few minutes to 24 hours, especially when reported online or through mobile apps.
This TAT includes assessment, document verification, surveys (if required), approval, and settlement. Health insurance cashless claims are generally approved within 2–3 hours, reimbursement claims take 7–15 days, motor insurance minor claims take 2–3 days, and life insurance claims are usually settled within 15–30 days after complete documentation.
Renewal TAT refers to the time taken to process policy renewals and portability requests. Renewals done online are often instant, while offline renewals may take 1–3 business days. Portability requests, which involve insurer-to-insurer coordination, usually take 15–30 days.
Grievance redressal TAT includes complaint acknowledgement and final resolution timelines. Insurers typically acknowledge complaints within 24–48 hours, and resolution is generally completed within 15–30 days, as per prescribed service standards.
TAT for Claims in Different Types of Insurance
Claim Turn Around Time (TAT) differs across insurance categories because each type of insurance follows a different claim process, level of verification, and documentation requirement. The nature of the claim and completeness of documents also play a key role in determining timelines.
Health Insurance Claim TAT
Motor Insurance Claim TAT
Life Insurance Claim TAT
Travel & Other Insurance Claim TAT
Health insurance claim TAT depends on whether the claim is cashless or reimbursement. Cashless claims are usually approved within 2–3 hours after hospitalisation details are shared, while reimbursement claims may take 7–15 days from the date of submission of complete documents. Delays can occur if medical reports or hospital bills need clarification.
Motor insurance claim TAT is influenced by surveyor appointment, damage assessment, repair approvals, and invoice verification. Minor damage claims are often settled within 2–3 working days, while major repairs or total loss claims can take 2–4 weeks, depending on inspection and documentation.
Life insurance claim timelines vary based on the type of claim. Early death claims, especially those occurring within the initial policy years, may take 30 days or more due to detailed verification. Maturity and regular death claims, once all documents are submitted, are generally settled within 15–30 days.
Travel and other general insurance claims usually have shorter claim cycles due to lower claim values and simpler documentation. Claims such as baggage delay, trip cancellation, or personal accident are often processed within 7–10 days after receipt of complete documents.
Note: Actual claim TATs may vary by insurer, product terms, and service standards, and certain claim processes are governed by guidelines issued by IRDAI.
What Factors Affect Turn Around Time in Insurance?
Turn Around Time (TAT) in insurance can vary based on several operational and customer-related factors that influence how quickly a request or claim is processed.
Completeness and accuracy of submitted documents
Complexity of the claim or service request
Presence of fraud indicators requiring additional verification
Involvement of third parties such as hospitals, garages, or surveyors
Coordination delays with network hospitals or authorised repair centres
Speed and responsiveness of the policyholder in providing information or clarifications
IRDAI Guidelines on Turn Around Time (TAT)
IRDAI (Insurance Regulatory and Development Authority of India) prescribes maximum timelines within which key insurance processes like claim settlement, grievance handling, and communication must be completed by insurers. These timelines are meant to protect policyholders’ interests and ensure accountability in service delivery.
IRDAI regulations require insurers to settle or reject claims such as health and general insurance claims within defined timeframes after receiving all necessary documents, and where investigations are needed, to complete them within a stipulated period.
Insurers must acknowledge communications and update policyholders on next steps within a specified number of days as per the regulatory framework.
If claim settlement is delayed beyond the prescribed timelines, insurers are obligated to justify the delay in writing to the policyholder.
In cases of delayed settlement, IRDAI rules also mandate that the insurer pay interest on the claim amount at a rate above the prevailing bank rate for the period of delay.
For grievance redressal, IRDAI sets standards for acknowledgement and resolution timelines, and policyholders can escalate unresolved complaints to the regulator’s grievance cell or use the Ombudsman mechanism.
These guidelines help ensure timely action by insurers and provide policyholders with remedies and recourse when service standards are not met.
Source –
Insurance FAQs IRDAI
Grievance Redressal IRDAI
How Policyholders Can Reduce TAT Delays?
Policyholders can significantly speed up insurance processes by being proactive, organised, and responsive throughout the service or claim journey.
Submit complete and accurate documents in one go to avoid back-and-forth
Respond promptly to insurer queries, calls, or requests for clarification
Opt for cashless facilities at network hospitals or authorised garages where available
Track claims or service requests online through insurer apps or portals
Keep copies of all submissions and reference numbers handy
Escalate delays through the insurer’s grievance channel and, if needed, approach IRDAI for resolution
TAT vs Claim Settlement Time: Is There a Difference?
Turn Around Time (TAT) is a broader service metric that covers the total time taken to complete any insurance-related process, such as claim registration, assessment, communication, and resolution. Claim settlement time, on the other hand, refers specifically to the period taken to approve and pay a claim after all requirements are met. For example, while the overall claim TAT may include intimation, document verification, and survey, the settlement time focuses only on the final payout stage.
Common Misconceptions About TAT in Insurance
Here are a few misconceptions about TAT in insurance:
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TAT starts from the date of accident or hospitalisation
TAT actually begins only after the insurer receives a complete claim request along with all required documents, not from the date of the incident.
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All insurance claims are settled within the same number of days
Claim timelines vary based on the type of insurance, claim complexity, investigation requirements, and documentation involved.
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Delays always mean the insurer is at fault
In many cases, delays occur due to incomplete documents, delayed responses from the policyholder, or pending third-party inputs like hospital or garage reports.
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Cashless and reimbursement claims have the same TAT
Cashless claims are usually processed faster, while reimbursement claims take longer due to post-treatment document verification.
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TAT guarantees claim approval
TAT only defines the time taken to process a request; it does not ensure that a claim will be approved, as approvals depend on policy terms and eligibility.
Conclusion
Turn Around Time (TAT) is a crucial service-quality indicator in insurance, as it directly impacts how quickly and smoothly policyholders receive decisions, support, and claim settlements. Understanding TAT expectations, insurer commitments, and one’s own responsibilities helps minimise delays and ensures a faster, more seamless insurance experience.
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Disclaimer: The timelines mentioned in this article are subject to the insurers and IRDAI Guidelines. Please refer to your insurance policy document and stay updated with IRDAI for accurate timelines.
FAQs on Turn Around Time (TAT) in Insurance
What is a good TAT in insurance?
A good TAT is one that meets or beats the insurer’s stated service standards while complying with regulatory guidelines. Faster TAT generally reflects efficient processes and better customer service.
Does TAT include weekends and holidays?
In most cases, TAT is calculated in working days unless the insurer specifies otherwise. Some digital processes, such as online policy issuance or cashless approvals, may function even on weekends and holidays.
Can insurers extend TAT?
Yes, insurers may extend TAT if there are valid reasons such as incomplete documentation, need for investigation, or third-party verification. However, the reasons for the delay must be communicated to the policyholder.
What happens if an insurer exceeds the TAT?
If an insurer exceeds the prescribed TAT without a valid justification, it may be required to explain the delay and, in certain cases, pay interest on delayed claim settlements as per regulatory norms.
Is TAT the same for cashless and reimbursement claims?
No, cashless claims are usually processed faster as approvals happen during treatment, while reimbursement claims take longer due to post-treatment document verification.
How can I track my insurance TAT status?
You can track TAT through the insurer’s website, mobile app, customer support channels, or by using the claim or service reference number provided at the time of request.
Does IRDAI penalise insurers for delayed TAT?
IRDAI mandates service timelines and can take regulatory action if insurers repeatedly fail to meet them, including directing corrective measures and enforcing consumer protection provisions.
Is TAT mentioned in the policy document?
TAT may not always be detailed in the policy wording, but it is usually outlined in the insurer’s customer charter, service handbook, or claims process documentation available on their website.
