The life insurance policy provides a death benefit to the beneficiary in case the policy buyer dies. The death benefit includes the sum of money that the insurance company pays to the nominee.
A person cannot predict his life. This is why, people buy a life insurance policy to protect themselves and their loved ones against unexpected events or financial crises. However, it is important to understand the process of filing a life insurance claim to receive the amount from the company.
Types of Claims in Life Insurance Policy
There are three types of claims that a policy buyer or nominee may file. These claims depend on some terms and conditions. For example, a policy buyer cannot file a death claim as such a claim is filed only after the death of the policy buyer. Hence, only the nominee can file such a claim.
Here are the life insurance claims.
- Maturity claims
- Death claims
- Claim against riders
Life Insurance Claim Process
The beneficiary receives the payout from the insurance company under the life insurance claim process. One must understand the steps to file a life-cover claim. Here are the steps that one should follow to file the death claim.
Written Claim Intimation
The beneficiary of the policy must inform the company about the claim. He also should inform the name of the policy buyer, number of policies, death site, date of the death, and his name. The beneficiary should also get the claim notification form from the company by informing them about the claim. He may submit the request or visit the local office to get the claim form.
The beneficiary of the policy needs to provide the following details.
- Name: The beneficiary should provide the full name of the company.
- Policy number: He also needs to provide the policy number that the policy buyer receives after buying the policy.
- Name of Policy buyer: The beneficiary should provide the name of the policy buyer who has died.
- Date and location: The beneficiary should also provide the date when the policy buyer died and the place where he died.
- Reason: The beneficiary needs to inform the reason for the death of the policy buyer. The company shall settle the claim only when the reason for death aligns with the terms and conditions of the policy.
The beneficiary may also get the claim from the insurance advisor who sold the policy to the policy buyer. He may also visit the local office or check the website of the company to download the claim notification form.
Submission of Claim Form
The company is likely to ask for the following paperwork in case of the demise of the policy buyer. The beneficiary needs to submit such papers to the insurance company.
- Original policy: This is the document that the policy buyer receives after buying the insurance policy. The insurance agent provides this document to the policy buyer. The beneficiary should keep this document safe to use in the future.
- Copy of death certificate: The hospital provides the death certificate when someone dies. The beneficiary needs to submit a copy of such a certificate to the company to claim the amount.
- Claim form: The beneficiary needs to fill in the claim form with the correct details. He also needs to sign the paper and submit it to the company.
Also Read: Top 5 Reasons to Add Riders to Insurance Policy
Documents Required for Life Insurance Claims
The beneficiary of the policy needs the following document for the death claim.
The documents that the beneficiary needs to submit may vary from insurer to insurer. The documents depend on the cause of the death. This includes natural death, accidental death, death due to natural calamities, etc. Below are the documents that the beneficiary needs to submit generally.
- Identity proof of the beneficiary: The insurance company may seek identity proof if the beneficiary claims the cover amount. The beneficiary needs to submit a passport, Aadhar card, driving license, voter ID card, PAN card, employment letter, photos, and other documents that the company may ask for.
- Address proof: The beneficiary also needs to submit proof of his residence. This includes Aadhaar card, electricity bills, passport, etc.
- Medical records: The company may also ask for the medical records of the deceased. The beneficiary needs to provide the document that validates or proves that the policy buyer was under hospitalization before he died. The beneficiary may submit the discharge paper or death summary.
- Cause of death certificate: The beneficiary needs to submit a cause of death certificate in case the policy buyer dies at home. He needs to submit the post-mortem report in case the policy buyer dies due to an accident or unnatural cause.
- Proof of legal title: The beneficiary needs to provide proof of legal title in case the policy buyer fails to appoint him as beneficiary. The person has to get the legal title or succession certificate if he wishes to make the death claim.
- Policy details: The beneficiary must have the details of the policy. This is important for the company to verify the claim amount and other terms and conditions.
The beneficiary must make sure to submit all the important documents to the company to receive the death claim. The insurance company generally takes 30 days after receiving the documents to issue its final decision on the death claim.
Death Claim Process
The beneficiary may follow the below process to claim the death benefit.
- The beneficiary must visit the website of the company and click on the registered claim.
- He may register the claim via email, WhatsApp, or phone call.
- The beneficiary may also send it through post if he wishes to file the claim both online and offline.
- He should upload the important documents for verification.
- He needs to wait for some days to receive the confirmation of the insurance claim.
- He shall receive the claim amount once the insurance company approves the claim.
The policy buyer must learn the above process to file the death claim.
Maturity Claim
Maturity or final claim is the final settlement between the insurance company and the policy buyer. The insurance company provides the survival amount to the policy buyer at the end of the policy period. The policy buyer may claim the settlement amount both online and offline. The policy buyer needs to submit some documents either online or physically to claim the amount.
Let us discuss the documents that the policy buyer needs to submit to calm the life insurance maturity amount.
- Original policy: The policy buyer needs to submit the original copy of the policy to the insurance company. The insurance shall check the policy and examine if the policy has come to an end.
- Identification photo: The policy buyer needs to submit his identification photo to the insurance company.
- Bank account details: The policy buyer needs to submit his bank account details in which he shall receive the amount from the insurance company. He also needs to submit the bank statement and canceled cheque.
- Discharge form: The policy buyer needs to complete the discharge form which he may get from the insurance company. He needs to fill in the form with the correct details and submit it to the insurance company.
Rider Claims
The additional benefits that the policy buyer receives are known as riders. The policy buyer needs to submit the claim form, policy certificate, discharge summary, etc for filing the rider claim.
Also Read: Useful Riders for your Car Insurance policy
Rejection of Claim
The policy buyer must understand why the insurance company may reject his claim. Here are the reasons that may lead to the rejection of the claim.
- Incomplete form: The policy buyer must file the claim with complete detail. The insurance company may reject the claim in case of an incomplete application. He must fill in his important details. This includes age, lifestyle (if he smokes or drinks), previous policies, occupation, etc. He must fill them completely and accurately.
- Non-payment: The insurance company may reject the claim if the policy buyer fails to pay the policy amount to the insurance company. The policy buyer must make a timely payment to claim his life insurance
- Policy terms: The insurance company may reject the claim if the policy buyer fails to fulfill the terms and conditions of the policy. For example, the company may reject the claim if the policy buyer dies due to other reasons that are not in accordance with the terms and conditions of the policy.
- Suicide: The beneficiary shall not receive the death claim amount if the policy buyer dies due to suicide.
- Hide detail: The insurance company may reject the claim if the policy buyer hides any details or keeps a secret from the insurance company.
- Nominee data: The insurance company may also reject the claim if the policy buyer fails to update the nominee data.
Role of PoSP Agent in Claim Process
PoSP (Point of Selling Person) also works as a normal insurance agent. IRDAI (Insurance Regulatory and Development Authority of India) introduced this concept to meet the unique demand of people. A person may become a PoSP agent by attending the training session and clearing the PoSP exam. The PoSP also sells policies like normal insurance agents. However, there are some differences between the two. A PoSP may sell different kinds of policies for many insurance companies. At the same time, a normal agent can work for only one company. Therefore, the earning scope is high in the PoSP profession.
The policy buyer may contact the PoSP agent to file the claim process. The PoSP helps the buyer to file the claim process. He guides him on how he may contact the insurance company and file the claim. He also teaches him the process of filing a claim. The PoSP brings the claim form and gives it to the buyer to fill it out correctly. He also helps him to fill out the form and submit the important documents. The PoSP also speak to the insurance company to settle the claim of the policy buyer as soon as possible. He gives the update of the claim to the buyer and solves every problem.
Conclusion
The policy buyer must understand the process to file the life insurance claim. He must keep the important documents safe. This includes policy documents, identity proof, address proof, death certificate etc. He must contact the insurance company and inform them about the claim. Then, he should get the claim form and fill it out correctly. He needs to fill in the correct details in the form. The policy buyer may not receive the amount if he hides any details from the insurance company. The policy buyer needs to submit his bank account details in which he wishes to receive the claim amount. The policy buyer must also understand the reasons why the insurance company may reject his claim to avoid any issue.
FAQs
Q: What are the types of claims in life insurance policy?
A: Here are the types of claims in life insurance policy.
- Death claim
- Survival claim
- Rider claim
Q: How to file a claim for a life insurance policy?
A: Here are the steps that one may follow to file a claim for a life insurance policy.
- Contact the insurance company: The nominee must contact the insurance company if the policy buyer dies.
- Fill in the form: The nominee should fill in the claim form that the insurance company provides.
- Surveyor: The insurance company shall appoint an agent who shall confirm if the policy buyer dies.
- Payment: The insurance company shall make the payment of the policy to the beneficiary after confirmation from the agent.
Q: Who is the nominee?
A: A nominee is the person who shall receive the death benefit if the policy buyer dies. The policy buyer may choose a nominee who shall receive the benefits of the policy if the policy buyer dies during the tenure of the policy.
