Term Insurance 1221 views November 21, 2018

The purpose of buying term insurance to secure your loved ones’ financial future and make up for the loss of income in the event of your sudden demise. Rejection of claim by an insurer defeats the intent with which you had bought a term insurance plan in the first place. Claim settlement is one of the important services that every insurer provides to its customers to ensure prompt settlement within the stipulated time period.

Term Insurance

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However, not many are aware of the procedure to file a term insurance claim for seeking the predetermined death benefits.

To File an Insurance Claim, One Needs to Follow Certain Steps

Claim Intimation

It is important that the claimant of the term insurance policy intimates about the death of the policyholder to initiate the claim processing process. While intimating about the claim, the nominee(s) would be required to provide basic information including policy number, the name of the insured or policyholder, date of death, the cause of death, place of death and details of the nominee(s) or dependent(s). While claiming through the online rate takes lesser time sans the need to provide physical documents, those not well versed with the digital mode can get a claim intimation or notification form from the nearest local branch office of the insurer or get in touch with the insurance advisor or agent.

Submit Necessary Documents for Claim Processing

Submitting the insurance policy claim application is not enough. To support your claim, you need to attach necessary documents like the original policy document, death certificate, police FIR, post mortem report (in case of accidental death of the policyholder), records showing treatment and death certificate from the hospital the insured was being treated (in case of death is due to illness) and advance discharge form for processing of the claims. If the sum assured is greater than Rs. 50 lakhs, then the insurer may request for added documents prior to processing the claim.

Early Submission of Documents

For early claim processing, it is important to submit documents early. This is because the insurer may ask for additional documents which may take extra time. Unless the insurance company is sure that all necessary documents have been submitted, it will not process your claim.

Claim Settlement

According to Regulation 8 of the Insurance Regulatory Development Authority of India (IRDAI), the insurance company is required to settle a claim within 30 days of receiving all the documents inclusive of added information sought by it. However, if the claimant is able to submit all necessary documents in the first instance, the insurer may consider settling the claim earlier. In some instances, the insurer prefers to inquire about the cause of death or credibility of the nominee and order some investigation regarding the same. This is most common in instances where the sum assured runs in crores. In such a scenario, the insurance company is required to settle the claim within six months of receiving the claim intimation.

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