Life insurance serves as a vital financial protection, which offers support to your relatives during troubled times. Knowing the Life Insurance Claim Process will eliminate unnecessary hassle during the policy claim period. Having the required information in place enables the beneficiaries to complete their process smoothly and efficiently. A clear understanding of the steps involved helps reduce stress during an emotionally challenging time.
Types of Life Insurance Claims
A person should understand various claim categories before beginning the claims procedure.
✔ Death Claim – Initiated by the nominee on the policyholder’s death.
✔ Maturity Claim – Initiated by the policyholder on maturity of the policy.
A policy rider claim gets activated when additional benefits such as critical illness benefits, become available based on policy conditions.
Step-by-Step Guide to Filing a Life Insurance Claim
Inform the Insurance Company
To start the Life Insurance Claim Process, policyholders or nominees must provide immediate notification of their claims to the insurer. Customers can execute the notification through digital channels, telephone contact, or email correspondence or by visiting their branch location. Send necessary policy information, including policy number, beneficiary identity, and the event date (e.g., policyholder’s death or the deadline for a maturity claim).
Collect Mandatory Documents
To process the claim efficiently, the insurer will require certain documents, such as:
✔ For a Death Claim:
- Original policy document
- Death certificate (from municipal authorities)
- Identity proof of nominee
- Medical records (if any)
- FIR/Post-mortem report (in the case of accidental death)
- Cancelled cheque or bank passbook copy of nominee
- PAN card or Form 60 (if claim amount exceeds applicable limit)
✔ For a Maturity Claim:
- Original policy document
- Discharge form (given by the insurer)
- Identity and address proof of policyholder
- Cancelled cheque or bank passbook copy
- PAN card or Form 60, if applicable
✔ For a Rider Claim:
Additional documents as per the rider’s terms (e.g., hospital records, diagnosis reports, and medical certificates for a critical illness rider)
Submit the Claim Form
The nominee or policyholder needs to complete and submit the insurer’s formal claim form along with the necessary documents. It is convenient if the insurer provides the option for submitting online, which speeds up the process significantly. Note: In the case of a death claim, only the nominee or legal heir can submit the claim.
Verification Process by the Insurer
When the claim has been made, the insurance firm checks through the details. Investigations are made in the event of premature claims (made within two years of purchase) or deaths due to accidents. This step ensures the legitimacy of the claim and prevents fraud.
Claim Approval and Payout
Once verification is confirmed, the amount of the claim is paid into the nominee’s bank account by the insurer. This time frame will differ, but it is typically within 30 days if all documents are complete. If additional investigation is needed, the insurer must complete it within 90 days and settle the claim within 30 days thereafter as per IRDAI guidelines. It is advisable to track the progress to ensure timely disbursement. In case the policy does not qualify for tax exemption under Section 10(10D) of the Income Tax Act, TDS may be applicable on the maturity proceeds.
Tips for a Seamless Claim Settlement
✔ Pay all policy premiums on time to maintain the policy.
✔ Store all policy documents and medical records safely.
✔ Enter accurate nominee details while buying the policy.
✔ Inform the insurer as soon as an incident occurs to prevent delays.
✔ Review your policy regularly to ensure it aligns with your changing needs.
✔ In the absence of a registered nominee, legal heirs may need to provide a succession certificate to claim the policy benefits.
Knowledge of the Life Insurance Claim Process ensures that beneficiaries can claim without undue stress. Adhering to the steps above and having the necessary documents with you, you can ensure that financial assistance reaches your loved ones without hassle in times of need. Staying informed about each step provides peace of mind during the entire claims process.
