Prices Increasing soon Prices Increasing Soon

Term Insurance Claim

A term insurance claim is filed by the policy beneficiary to the insurance company in order to avail of the death benefit in case of the policyholder’s unfortunate demise. A majority of insurance companies offer a seamless claim processing facility so that the beneficiary can file a claim and avail of the benefit payout seamlessly.

Read more
Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount# for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
rating
7.7 Crore
Registered Consumer
50
Insurance Partners
4.2 Crore
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from /month+
+91
Secure
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.

What is Term Insurance Claim Settlement Process (CSR)? 

Claim Settlement Ratio is the percentage of claims settled by an insurance company in a Financial year against the total number of claims made in the same year. This simply means that it is the claims paid against the claims made in the FY. For example, if you have selected a company with 95% CSR, this means that the insurance company has settled 95 claims out of 100. Apart from Sum assured, policy term, CSR is one of the important aspects that one should always consider before purchasing a term insurance plan. Every insurer has a claim settlement ratio that varies every year. 

Now, what is a good claim settlement ratio? Is a big concern these days. How to select a company based on CSR? So it is quite a simple concept. The higher the % of claims settled, the better are the chances that your claims will be approved and then settled without any hassle. CSR also determines the stability and the finances of a company. With the claim settlement ratio of 90% or above, an insurance buyer can be sure that the insurance company is safe and financially stable as they have cleared the claim amount of most of their customers. 

How Can You Calculate Term Insurance Claim Settlement Ratio? 

A Term Insurance Claim Settlement is computed with the following formula: 

CSR = (Total number of settled claims in a year/Total number of claims in a year) X 100 

For Instance, Company X settled 8,500 claims out of the 10,000 claims for 2022-23. So as per the formula, 8,500/10,000X100, the CSR will be 85%.

Claim settlement of every insurance company is published by the IRDAI in their Annual Reports. You can check the CSR ratio of FY 2022-23 on the IRDAI website.

Importance of Claim Settlement Ratio in Term Insurance 

At the time of filling a term insurance claim, the amount of settlement that is provided by the insurer is the maximum benefit that a family/nominee receives after the death of the policyholder. If you are choosing an insurer with a high CSR, then you can expect the company to offer benefits to you and your family. This, in turn, make sure that you or your dear ones will not be affected by the life uncertainties and increasing living standard. It is advisable to choose an insurance company with a high claim settlement ratio that ensures a quick and hassle-free settlement Process.

  1. It assures your family’s financial protection 

    The main objective of buying term insurance is to provide financial protection against unfortunate events. However, it will be of no use if the insurer is not able to provide you claim easily. On the other hand, if the insurance company provides you a claim, then your family might have to go through a simple, transparent, and smooth claim process. 

  2. Specifies the reliability of the Insurance company 

    The CSR indicates the ability of an insurance company to pay the sum assured amount to you or your nominee/legal heir. If the insurance company is maintaining a high value of CSR over a long period, then they are reliable in paying claims smoothly and hassle-free. 

Claim Settled Amount of Term Insurance Companies in India 2023-24

As we have discussed, the claim settled amount helps determine the claim trustworthiness of the company. Below mentioned are the CSA for different term insurance companies for the FY 2023-24:

Name of the Insurer Term Insurance Plan Claim Settled Amount (cr) Entry Age Maximum Maturity Age
Aditya Birla Sun Life Insurance Company Limited ABSLI Income Suraksha Plan 458 21-55 years 70 years
Aviva Life Insurance Company India Limited Aviva Signature 3D Term Plan 98 18-65 years 80 years
Bajaj Allianz Life Insurance Company Limited Bajaj Allianz eTouch 603 18-55 years 99 years
Bandhan Life Insurance Limited Bandhan Life iTerm Prime 86 18-65 years 70 years
Bharti Axa Life Insurance Company Limited Flexi Term Pro 148 18-65 years 99 years
Canara HSBC Life Insurance Company Limited Canara Young Term Plan 186 18-45 years 99 years
Edelweiss Life Insurance Company Limited Edelweiss Life Zindagi Plus 59 18-65 years 80 years
Future Generali India Life Insurance Company Limited Future Generali India Term Insurance Plan 33 18-60 years 65 years
HDFC Life Insurance Company Limited HDFC Click 2 Protect Super 1,389 18-65 years 85 years
ICICI Prudential Life Insurance Company Limited ICICI iProtect Smart 1,950 18-65 years 99 years
IndiaFirst Life Insurance Company Limited IndiaFirst Life Elite Term Plan 160 18-60 years 99 years
Kotak Mahindra Life Insurance Company Limited Kotak e Term 321 18-65 years 85 years
Life Insurance Corporation of India LIC New Tech Term Plan 18,398 18-65 years 80 years
Max Life Insurance Company Limited Max Life Smart Total Elite Protection 1,242 18-65 years 85 years
PNB MetLife India Insurance Company Limited PNB MetLife Mera Term Plan Plus 407 18-50 years 80 years
Pramerica Life Insurance Company Limited Pramerica Life Rock Solid Plan 30 18-65 years 85 years
SBI Life Insurance Company Limited SBI eShield Next Plan 1,676 18-65 years 100 years
Shriram Life Insurance Company Limited Shriram Life Smart Protection Plan 109 18-65 years 75 years
Star Union DAI-ICHI Life Insurance Company Limited SUD Life Protect Shield Plus 113 18-60 years 80 years
Tata AIA Life Insurance Company Limited Tata AIA Sampoorna Raksha Promise 776 18-65 years 100 years

*Disclaimer: The list of insurers mentioned are arranged according to the alphabetical order of the name of insurance company respectively. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. The list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

Types of Term Insurance Claims 

Term insurance is a pure protection plan that provides financial protection to your family in case of your unfortunate demise. Following are the different types of term insurance claims: 

  • Maturity Claim – It is a type of claim which is payable at the time of maturity of the term insurance plan. In this, a certain amount is paid to the life assured, if he/she survives till policy completion. You can get a maturity claim only if you are paying premiums on time.

  • Death Claim – In this, the claimant raises a request for receiving the benefits in case of the death of the policyholder. In such cases, the sum assured is payable to the nominee/beneficiary upon the policyholder’s demise. To receive a claim amount without any hassles, the insurer is required to be informed about the death and the other information such as policy number, death date, and the tenure of the policy till when the company is responsible for compensation. The death benefits are also tax-free U/S 10(10D) of the Income Tax Act, 1961. 

  • Rider Claim – Term insurance riders are the additional benefits that the life assured can avail at the time of purchasing a term insurance plan by paying an extra amount. Some of the common term insurance riders are Waiver of Premium Rider, Critical illness rider, Accident, and Total Permanent Disability Rider.

Term Insurance Claim Process

There are many different steps involved while filing a claim on a term insurance plan. In case of unfortunate death of the insurance holder, the dependents (family members) or beneficiaries under the term insurance policy should inform the insurer as soon as possible. To support the claim filed, it is necessary to submit all the required documents. However, before intimating the insurance company, the beneficiary should keep some important facts in mind.

  • The insurance policy should be in force and all the premiums should be duly paid.

  • The specific situation for which the claim is filed should be covered under the term insurance.

  • Policy exclusion.

Step by Step Process of Term Insurance Claim Settlement

  1. Inform the Insurance Provider About the Claim

    In order to enable the insurer to start the process of claim, the nominee should inform the insurance company as soon as possible. The required details for the intimation of claim are the name of the policyholder, policy number, date of birth of the insured, place of death, the cause of death, the name of the beneficiary, etc. The beneficiary can avail of the claim form either from the nearest branch of the insurance company or can even download it from the website of the insurance company. Moreover, the beneficiary can also fill the form online and file the claim.

  2. Documents Required

    The documents that should be kept handy while filing the claim are:

    • Death certificate

    • Age of the policyholder

    • Original documents of policy

    • Any other documents according to case-related or according to the requirement of the particular insurance company

    If a claim is made within the 3 years of policy issued, the insurer does an additional investigation in order to ensure it is a genuine claim. Following checks should be done:

    • Check with the hospital whether the demised person was admitted to the hospital or not.

    • In case of confirmation of a flight crash from the airline authorities, the insurer checks with the airlines whether the insurance holder was the passenger of the flight or not.

    • In the case of the death of the insured due to any critical illness, the insurance provider will ask the hospital to make available the details like medical records, doctor’s certificate, etc.

    In case the insurance holder dies due to suicide, murder or accident then panchanama, police FIR report, and post mortem report will be required.

  3. Submission of all the Important Documents for the Processing of Claim

    The beneficiary should submit all the required documents as early as possible to speed up the claim process and avoid any delay.

  4. Settlement of Claim

    According to the Insurance Regulatory and Development Authority (IRDA) of India, it is mandatory for all the insurance companies to settle the claim within 30 days. The claim should be settled by the insurer from the date the beneficiary submits the claim form along with all the required documents. In case, the claim requires additional investigation then the insurer is obligated to complete the process within 6 months from the date of receiving the written intimation of the claim.

Important Inclusion and Exclusion

Term insurance coverage applies to both unnatural and natural death. In the case of suicide, the claim is settled after one year of taking the policy. Inclusion and exclusion of the policy depend upon the risk factor of the policyholder. Thus, the benefit of non-smokers will be different in comparison to that of smokers. However, most of the benefits offered by term insurance plans will remain same and the coverage varies from plan to plan.

Documents Required for Term Insurance Claim Submission

  • Completely filled claim form (provided by the insurer)

  • Death certificate (an original and attested copy issued by local municipal authority)

  • Original policy documents

  • Deeds of re-assignments/assignments if any

  • Photo of the nominee, ID proof like PAN card, Aadhar card, passport, etc.

  • Last medical attendant physician certificate

  • Medical records (admission notes, death/ discharge summary, test report, etc.)

  • Post-mortem report, if any

What Are The Common Reasons for Rejecting the Term Insurance Claim? 

Though the process to raise a claim is quite easy and convenient but still, it gets rejected sometimes because of the following reasons:

  • If in case a policyholder has provided wrong information to the insurer in the application form.

  • If the policyholder has not paid the premiums on time or the policy is renewed within the grace period

  • The policyholder’s nominee makes the fraudulent claim to gain the amount of the claim

  • If the reason for the death is excluded from the term insurance policy that might be suicide before the completion of 1st policy term, accidental death because of the drugs, alcohol, or any other related substance.

How You Can Avoid the Term Insurance Claim Rejection? 

  • Do not give False Information – Fill in all the details such as age, lifestyle habits, earnings, qualification, previous policies, and claims carefully and correctly. 

  • Reveal Medical History – Inform the insurer about your previous and existing medical situations, surgeries, etc. The health history of family members is also disclosed if required by the insurance company. 

  • Update the Information of Nominee – Nominee receives the death benefit, so it is very important to update the insurer about the details of the nominee. 

  • Payment of Premiums on time – It is required to pay premiums on time. And, if somehow you fail to pay a premium, then you can use the grace period to pay the unpaid premium. Direct debt facilities can also be chosen to make sure that your premium is paid. 

  • Disclose the Information about the Existing Policies – While buying an online term plan, make sure to disclose all the existing life insurance policies. Hiding the previous policy information might result in the claim rejection. 

Premium By Age

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Choose Term Insurance Plan as per you need

Plans starting from @ ₹473/Month*
Term Insurance
1 Crore Term Insurance
Term Insurance
2 Crore Term Insurance
Term Insurance
4 Crore Term Insurance
Term Insurance
5 Crore Term Insurance
Term Insurance
6 Crore Term Insurance
Term Insurance
7 Crore Term Insurance
Term Insurance
7.5 Crore Term Insurance
Term Insurance
8 Crore Term Insurance
Term Insurance
9 Crore Term Insurance
Term Insurance
15 Crore Term Insurance
Term Insurance
20 Crore Term Insurance
Term Insurance
25 Crore Term Insurance
Term Insurance
30 Crore Term Insurance
Term Insurance
15 Lakh Term Insurance
Term Insurance
60 Lakh Term Insurance

Term insurance Articles

  • Recent Article
  • Popular Articles
27 Nov 2024

Is Term Insurance Covered Under 80C?

Yes, term insurance is covered under 80C. Term insurance not

Read more
27 Nov 2024

Secure Your Future with Term Insurance: A Guide...

Chennai, a bustling city of dreams and opportunities, is home to

Read more
27 Nov 2024

How to Apply for National Overseas Scholarship...

When it comes to financial planning, securing your family’s

Read more
26 Nov 2024

Digit Glow Term Life Insurance Plan

Digit Glow Term Life Insurance is specifically designed to meet

Read more
26 Nov 2024

Claim Guarantee in Term Insurance: Assurance with...

A term insurance policy ensures that your family is financially

Read more

Term Insurance Calculator Online : Get Instant...

Term Insurance Calculator [[ Term Insurance Calculator - Calculate your term insurance premium for free Term

Read more

LIC Money-Back Plan - 20 Years Maturity Calculator

LIC Money-Back Plan - 20 Years Maturity Calculator LIC Money Back Plan is no longer available for sale, as the plan

Read more

Best Term Insurance Plan for 1 Crore : Buy Best...

Best Term Insurance Plan for 1 Crore 1 crore term insurance plan provides financial security to your family by

Read more

Claim Settlement Ratio of Term Insurance Plan...

Claim Settlement Ratio (CSR) is an important parameter in the selection of an insurance policy. If you are going

Read more

LIC Policy for Girl Child in India

A LIC policy for a girl child is a plan that combines protection and savings while also providing your daughter

Read more
Need Help? Request Callback
top
View Plans
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL