Claiming A Life Insurance in India

Author: Yash Sharma

Opting for a life insurance policy is one of man’s attempts to be more prepared for the future. While one can do whatever, they want to guard themselves from the inevitable and its impact, the passing of a loved one is never easy, no matter the amount of life insurance policy that comes due once they pass away.

However, it is always a support (and one less thing to worry about in these tough times) when you are financially secured. Here are a couple of tips that aims to make claiming life insurance easier than it has ever been.

Life Insurance Plans: The Basics

In a nutshell, any life insurance plan is a contractual agreement between a beneficiary and an assurer, wherein the latter agrees to pay the former a certain sum of money after a pre-determined period, or in case of event (that is, the death of beneficiary in this case).

Most life insurance plans come with their own terms and conditions, and certain clauses vary from plan to plan, but at the core, all plans are the same—in the event of the death of the policyholder, the immediate family of the policyholder gets paid a certain sum of money according to the terms of the policy.

Making A Claim: How To

Step 1: In the event of death of the Life Assured (the person in whose name the policy is), the nominee or the assignee may file for a claim from the respective life insurance company. The first step in staking a claim is sending a formal intimation about the death of the Life Assured to the company. The claim intimation must contain the following particulars:

  • Date of death of the policyholder
  • Place of death of the policyholder
  • Cause of death of the policyholder
  • Policy ID/ Policy Number pertaining to the policy

Since the times are already tough, it is the job of the insurance agent to make the whole insurance claim process easier, by assisting them in duly fulfilling all the formalities regarding the same. The insurance agent acts as a liaison between the family of the deceased and the life insurance companies in India.

Step 2: Following the reception of the formal intimation from the family of deceased policy holder, the life insurance companies in India now respond asking for a specific list of documents, which generally consists of the following:

  • Statement of the nominee/assignee of the deceased
  • Copy of the FIR and post mortem report in case of death caused by accident.
  • The original policy document
  • Copy (and/or the original) of the death certificate
  • Medical history and/or records from the hospital if the death occurred due to medical reasons.
  • Other additional requirements as requested by the life insurance companies in India, under exceptional or unusual circumstances.

Step 3: Legally, all legitimate heirs (apart from the nominee) are eligible for to receive the benefits from the life insurance plans. In case the nominee as well as the policyholder pass away in the same accident, then the benefits and the amount from the policy is distributed according to the legal will prepared by the policyholder in advance. If none of the above is present, the sum assured from the policy goes to any person who can prove himself or herself to be a legal successor of the deceased in a court of law.

Step 4: According to guidelines laid down by IRDA, any life insurance companies in India are directed to settle all claims within thirty working days of filing of the claim by the family of the policyholder. However, in case of extenuating circumstances, or where it is necessary to carry out further investigations, the time frame may be extended till up to six months.

Dealing with Disputes

In case of any disputes or disagreements during the claiming process, the customer is to first reach out to the customer care department of the life insurance companies in India, who in turn is expected to carry out judicious problem solving. However, if the customer service department of the life insurance companies in India are unable to solve the problem, the customer is free to approach the IRDA through their Grievance Redressal Cell. The IRDA then intervenes and tackles the issue on the behalf of the customer with the life insurance company in question.