How Can I Claim LIC Bima Jyoti?

About LIC Bima Jyoti

LIC’s Bima Jyoti is a savings-cum-insurance product. It offers guaranteed benefits to the family of the life assured on her/his death and also offers a lump sum payout if (s)he were to survive the policy term. It is this duality of the policy that makes it one of the most favorable options among new buyers. 

How Can You Claim Benefits Under LIC’s Bima Jyoti?

In the recent past, LIC has maintained a decent track record in terms of the claim settlement ratio, as reported by the Insurance Regulatory and Development Authority of India. In the year 2019-2020, it reported a claim settlement ratio of 96.69%, which goes on to show its reliability and claim settling ability.

With LIC’s Bima Jyoti, one can either claim death benefit or maturity benefit depending on the circumstances. Given the importance of the claims procedure, the company has carefully laid out an efficient system to settle both maturity and death claims. 

1. Settlement In Case of Death Claims

   The death benefit payable under LIC's Bima Jyoti is the Sum Assured on Death plus accrued Guaranteed Additions provided death has occurred after the commencement of risk. However, if death occurs before risk commencement, the premium paid till the date of death is offered back to the beneficiaries.

   1.1 Procedure to Raise a Death Claim Under LIC’s Bima Jyoti Plan?

   Claimants or beneficiaries of the life assured are required to notify the branch office (where the policy was issued) in writing about the death within 90 days from occurrence. Should they fail to do so within this period, the claim will not be admissible. 

   However, if the delay in claim intimation occurs for reasons beyond one’s control, the company may accept it on merit.

   1.2 Documents Required for Claims Under LIC’s Bima Jyoti?

   Once the branch office is notified about the death of the life assured, it requests certain documents to process the claim request. 

   Documents Required

   Claim Form A, which is the Claimant's statement about themselves and the deceased

   Certified extract from Death Register

   Proof of age

   Original policy document

   Proof of new ownership of the deceased’s estate

   Additional Documents Required*

   Claim Form B, which is the Medical Attendant’s Certificate

   Claim Form B1, which corresponds to proof of treatment at a hospital

   Claim Form B2, which is filled by the Medical Attendant who treated the life assured during her/his illness

   Claim Form C, which is the Certificate of Identity with details on burial or cremation, duly signed by authorized personnel

   Claim Form E, which is the Certificate by Employer for proof of employment at the time of death

   Death due to Accident / Unnatural Causes

   First Information Report

   Post-mortem report

   Police Investigation Report

   Please note that the premiums payments have to be up-to-date for the death benefit to be in full. If the premiums are not in order, Guaranteed Additions cease to accrue. 

2. Settlement In Case of Maturity Claims

   The maturity benefit under LIC’s Bima Jyoti plan is defined as the Sum Assured at maturity, equal in amount to the Basic Sum Assured. It is payable to the policyholder when (s)he successfully survives the policy term defined under the cover. Under this plan, the life assured is also eligible to receive Guaranteed Additions to the basic sum assured that accrues at the end of each policy year.

   2.1 Procedure to File a Maturity Claim Under the LIC Bima Jyoti Cover?

   • The branch office that issued the policy sends out a letter to the policyholder. This letter is sent out at least 2 months before the date of benefit payable. 

   • The life assured is expected to duly fill this Discharge Form. 

   • The Discharge Form and the original policy document are to be sent to the branch office, along with the NEFT Mandate form, canceled cheque, ID proof, and KYC requirements. 

   • The documents are processed and verified, following which the maturity benefit amount is credited to the policyholder’s account. 

   LIC's Bima Jyoti Plan comes with a feature to receive the maturity amount in installments of 5, 10, or 15 years. This is called the settlement option. 

   To opt for the settlement option, policyholders are required to notify the branch office at least 3 months before the maturity of the policy. In the event of the life assured’s death after the date of maturity, the outstanding installments are paid to the beneficiary.

   Bima Jyoti further allows policyholders to withdraw from this feature through a written request from the policyholder to the branch office. 

What Should I Do If My Death Claim Is Rejected?

The Claims Review Committee established by LIC goes through a large number of claims every year. Of all the claims raised, only a small fraction of these are rejected if they find that information has been wrongfully withheld or incorrect information has been submitted. 

However, if an honest appeal is rejected by the committee, claimants get a fair chance to represent their case in front of review committees. Based on the merit of your situation, the review committee comes to a decision.

Despite these attempts, if you still have complaints regarding the decision on your claim, you can approach the Insurance Ombudsman for free at the Grievance Redressal Machinery. 

To Sum-Up

As a beneficiary of a LIC policyholder, it falls on you to take charge in the unfortunate event of their death and get the claim approved for your family. LIC recognizes the uncertainty and the urgency during such circumstances and has worked towards making the claims process easier for you. If you make sure to keep all the above-mentioned documents handy and in order, you are likely to get through with the claims process faster and without any hassles.