Life Insurance Claim Process

What is Life Insurance Claim Process?

The life insurance claim process is a procedure through which the policy beneficiaries receive the death benefit after the policyholder's demise. It involves notifying the insurer, submitting the required documents, such as a claim form and death certificate, and then undergoing a review by the insurer.

Upon successful verification, the insurer disburses the claim amount as a lump sum or per the payout structure chosen in the policy. While the process may vary slightly depending on the insurer and policy type, the basic steps remain similar.

Types of Life Insurance Benefits That Can Be Claimed

Below are the types of benefits that can be claimed upon purchasing a life insurance policy:

1. Death Benefit

   Death Benefit is the most common claim process in life insurance and provides financial support to the policyholder's family after his/her death. With the death benefit, the surviving family members or nominees can sustain their lifestyles after the policyholder’s death. The nominees have to claim the death benefits after the death in order to receive the sum assured.

2. Maturity Benefits

   The policyholder receives maturity benefits if he/she outlives the life or term insurance policy period. Moreover, if the policyholder pays all the premiums on time and completes the policy without any lapse, he/she is eligible for maturity benefits.

3. Rider Benefits

   If the policyholder purchases a life insurance policy and adds riders to it, such as Accidental Death Rider, Waiver of Premium Rider, Critical Illness Rider etc., he/she can claim the rider benefits whenever the situation arises.

How to Submit a Claim Request?

The claim process follows the death of the policyholder, upon which the nominee/claimant can go ahead and claim the death benefit. Below mentioned are the steps that determine the processing of the claim:

1. Intimation of Claim

   After the life assured's death, the nominee can initiate the life insurance claim process by submitting the Death Claim Form to the head office/bank branches/nearest offices or by Email, together with an attested proof of identification and the nominee's address proof. The death form can be found in both online and offline mode from the company’s website and branch offices respectively.

2. Document Submission

   The nominee/claimant also needs to submit the relevant documents together with the form to verify the information provided to the insurance company regarding the death of the policyholder. Below mentioned are the documents that the nominee should provide to the insurance company within the stipulated time provided to him/her:

   Death Types	Documents Required
   Mandatory Documents	Original documents of the policy Death Claim Form Canceled Cheque with NEFT details Nominee/Claimant’s ID and Address Proof
   Additional Documents Required:
   In case of Medical//Natural deaths	Consulted Doctor’s Statement Certificate of hospital treating the deceased policyholder Employer Certificate or Educational Institute Certificate of policyholder Additional treatment/hospital/ records
   In case of accidental/unnatural deaths	Police Reports (Panchnama, FIR, Police Investigation Report, Charge sheet) Autopsy/Post Mortem report (PMR) and Viscera Report

3. Claim Verification

   The insurer will verify the submitted documents and check the claim's validity. If necessary, they can also conduct an investigation or request further details.

4. Settlement of Claim

   After the claim approval, the insurer will process the claim amount and then transfer the death benefit payout to the nominee's bank account. The claim settlement process should be completed within the time mentioned in the policy terms and conditions.

   The claim is processed when the company receives all required documents and forms. The company checks and verifies the documents per the requirements, makes a decision (subject to T&C), and communicates the same to the nominee/claimant.

Things to Remember When Claiming Life Insurance Death Benefits

Although the claim process has become an easy task nowadays due to the flexible options available, you need to keep in mind the following things to have a seamless claim settlement:

• Claim Settlement Ratio (CSR): To evaluate reliability, check the insurer's CSR (available via IRDAI) for at least five years.

• Mode of Submission: Many insurers now provide online and offline claim options for user convenience.

• Transparency in Disclosure: Always disclose accurate information when purchasing the policy. Any misrepresentation may result in claim rejection.

• Premium Payment: Ensure premiums are paid on time to keep the policy active and valid for claim settlement.

• Lifestyle Updates: Inform your insurer of significant lifestyle changes, such as smoking or engaging in hazardous activities, to avoid future disputes.

Claim Settlement Ratio of Life Insurance Companies in India

The Claim Settlement Ratio (CSR) is one of the most critical indicators of an insurance company's trustworthiness. It represents the percentage of claims settled by the insurer against the total claims received during a financial year. A high CSR indicates the insurer has a reliable record of honouring claims.

Wrapping it up!

While nothing can replace the emotional loss of a loved one, a life insurance policy ensures your family is financially protected. By understanding the life insurance claim process, keeping the necessary documents ready, and ensuring that all policy details are accurate and updated, the nominee can experience a smoother and faster settlement. Always choose a trusted insurer with a high claim settlement ratio to ensure reliability when your family needs it the most.

FAQs