Term Insurance 533 views February 6, 2019

How to File Term Insurance Claim in Case of Sudden Death of Insured

The grief of losing a loved one can be immense. But as time passes, the pain inflicted by death gives way to fear and anxiety regarding unfulfilled responsibilities that need to be looked into. Though it is not possible to affix a monetary value to human life, financial insecurity associated with loss of income of your loved one cannot be ignored. Bills and expenses are constant and must be paid off. The responsibility of your family’s happiness cannot be put in other people’s hands, and this necessitates the need to set aside an assured amount of life cover. Buying term insurance with coverage that makes up for the loss of future income resulting from the death of the insured helps in such distressing situations.

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How to file a term insurance claim?

Compared to most other life insurance plans, term insurance allows greater scope for an affordable life cover as it includes no elements of savings or investments. However, in the event of a death of the insured, the nominee(s) has to raise a death claim to the term insurance policy. The nominee(s) would be required to follow a certain procedure to receive the amount of sum assured determined while buying the policy.

Step 1: Filing a term insurance claim

This step involves informing the insurer or insurance company about the death of the policyholder and lodge a claim on the death of the life insured. This can be done by either of the following ways:

  • Go to the insurer’s official website and look for page referring to online claim intimation
  • You may call the 24 ✕ 7 toll-free customer care number of your insurance company
  • Visit your insurer’s nearest branch office
  • Email about the claim intimation provided by the insurance company.

Step 2: Submit documents with the claim form

It is important that the intimation of the death claim must be accompanied with important details like date, place, and cause of the death. The insurer will formally accept the death claim only after it has received the written request for claim settlement along with the claim form and other relevant documents.

Relevant documents required to file a term insurance claim

In case of natural death, the documents that the nominee(s) of the insured would need to submit along with the claim form include:

  • Death certificate;
  • Original term policy document;
  • Deed of assignments, if any;
  • Discharge form

It is important that the policyholder(s) fills in details of nomination. If, for some reason, the details of the nominee(s) are missing, the claimant of the insurance amount has to attach documents to seek legal entitlement to the claim.

In case of accidental death, the documents that would have to be submitted to make the claim include:

  • Copy of the FIR lodged by the police,
  • Police Inquest Form and a copy of the final Police Investigation Report;
  • Statement by the attending doctor or certificate provided by the Medical Attendant;
  • Certificate from the hospital in which the insured was being treated, medical reports inclusive of admission details and discharge summary of the life assured, a summary of death along with test reports;
  • Post mortem report;
  • Statement by the claimant or nominee(s) of the insured.

Pursuant to the claim settlement process, the insurance company will verify the details provided by the claimant or nominee(s), corroborate with the reports submitted and nominee declaration details. However, the insurance company may seek additional documents to confirm the truth of the claim before releasing the claim settlement amount.

Claim settlement process

The insurance company commences the claim settlement process after receiving the death settlement claim along with the necessary documents. The insurer may ask for further details in case of dissatisfaction with the details already provided. However, the insurer is required by law to settle the claim within 30 days of the nominee(s) submitting all documents relevant to the term insurance policy.

Insurers are frequently asked if only the nominee is obliged to make the claim intimation. However, other than the nominee, even the relative(s) of the policyholder can make the claim intimation.

Final Note About How to File a Term Insurance Claim in INDIA

A term policy is like a risk management tool that covers the risk of loss of income to the family in case of unforeseen circumstances like death, disability, and disease. Pure term insurance protects against sudden death of the insured by ensuring them the much needed financial security needed to fulfill necessary goals in life. Considering the pervasiveness of risk in our daily lives, it is important that we include having a term insurance policy in our long-term investment portfolio.