FAQs 252 views November 1, 2018

The purpose of buying term insurance ends if the insurer refuses to honor the claim made by the nominee(s). Insurers are ranked according to their claim settlement ratios each year by the Insurance Regulatory Development Authority of India (IRDAI). This makes claim settlement as one of the most important services that an insurer is required to provide to its customers.

Term Insurance

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  • The first step to claim death benefits pursuant to a term insurance plan includes filling the form for claiming the settlement and then contact the insurance company from whom the policyholder had bought the policy. In case the insurance was bought offline, then the nominee(s) will have to get in touch with the agent or financial advisor from whom the policy was bought;
  • Secondly, submit all relevant documents inclusive of the death certificate and the policy documents to the insurer to support your claim. In most instances, insurers settle the insurance claims within a week of receiving the documents. In case the policyholder has died in an accident, the nominee(s) will be required to submit a copy of the FIR filed by the police and post mortem examination report. In case of death due to illness, the dependent(s) would be required to submit along with the death certificate and treatment records from the hospital in which the insured was treated and cause of death. Some insurance companies also ask for additional documents, if the sum assured exceeds Rs 50 lakhs.

As per the regulations by the Insurance Regulatory Development Authority of India (IRDAI), the insurance company is liable to settle the claim made by the nominee(s) within a month of receipt of all documents. However, if the claim begets further investigation regarding the cause of death or any other matter, the insurance company must settle the claim within six months of receiving the claim application.