INSURTECH startup Singapore Life has launched a new "next-day critical illness claim" which enables payouts within 24 hours.

It is the first insurer in the Republic to offer such a service, it said. Clients with a term life or direct term policy must have a valid, new or reinstated Singapore Life critical illness supplementary benefit for two years prior to the diagnosis of their claimable condition.

To have their claims processed within 24 hours, claimants must submit their completed forms as well as relevant documents such as medical laboratory reports or doctor's reports by 3pm each day. The claims will be paid out by 6pm the next business day, by FAST transfer or a couriered cheque.

Customers with a Zurich Life Insurance policy that provides critical illness coverage are also eligible to make a "next-day critical illness claim". Singapore Life acquired Zurich Life Singapore's business portfolio earlier this year.

Singapore Life chief executive Walter de Oude said: "Critical illness claims have historically been a big challenge for customers seeking payouts in a fuss-free and timely fashion. We have done away with manual workflow processes and long-drawn waiting periods, and replaced these outdated practices with streamlined and smart digitisation."