A life insurance claim arises on the death of an individual (life assured) covered under a life policy. The nominee or assignee of the policy, who is entitled to receive the benefits, needs to inform the insurance company about the loss. The intimation of death should be in writing and accompanied by a copy of death certificate. It should contain details such as date, place and cause of death. This needs to be submitted at the nearest branch office of the insurance company.
Claim form
On receipt of the intimation of demise, the branch office provides the relevant claim form to the applicant. This claim form needs to be filled and submitted to the insurance company along with the necessary documents.
Documents
The insurance company may require the death certificate, policy document, deeds of assignments/ re-assignments, if any, legal evidence of title, if the policy is not assigned or nominated, medical attendant’s certificate and other documents as applicable.
Processing
The insurance company may appoint an investigator to ascertain the validity of the claim. If it is found to be valid, the amount is paid, otherwise a repudiation letter is sent to the claimant, listing the reason for rejection.
Points to note
The insurance agent has to help the assured’s family to deal with the insurer and fulfil the formalities of a claim.
The life insurance policy documents should not be kept in safe deposit lockers as these are usually sealed temporarily on the owner’s death and may delay the settlement of claim.
In case there is no nomination or assignment in a policy, the benefit will be paid out only after the claimant has provided documentary proof of entitlement.
