Although death is certain, it’s a subject individuals frequently fail to adequately prepare for. Even those who purchase term insurance often neglect to inform their beneficiaries about its specifics. Consequently, beneficiaries of term insurance encounter challenges when attempting to submit a claim when necessary. Grasping the claims process holds importance, even if you’re not immediately impacted. We have outlined comprehensive steps to aid nominees in successfully navigating the procedure for filing a claim.
Step 1: Informing the Insurer
The most important step is informing the insurer about the policyholder’s demise. However, before doing so, it’s essential to confirm the policy’s active status and ensure all past premiums have been duly paid.
Also Read: Mistakes To Avoid In Insurance Policy: What May Cause Claim Rejection
Step 2: Submitting the Claim Form and Documents
Nominees must download the claim form online or obtain it from the nearest branch. This form, along with relevant documents, needs to be completed and submitted to initiate the claim process. The following documents are required and need to be attached to the form:
- Proof of age
- Death certificate
- Original policy documents
- Medical documents related to the policyholder’s passing (if applicable)
- Identity proof of the nominee or beneficiary
Step 3: Submission and Document Review:
Once the nominee fills out the claim form, submit it with the required documents. Make sure that all the details are checked twice and that all the above-mentioned documents are attached to the form.
Step 4: Assessment of the Claim
Following document submission, the claim assessment phase commences. Insurers conduct due diligence to examine the circumstances of the policyholder’s demise and rule out any potential exclusions. This phase may require additional medical or legal documents, especially in cases of suicide or murder, for a comprehensive review.
Claim Settlement (Within 30 Days):
To streamline the process, the Insurance Regulatory and Development Authority of India (IRDAI) mandates insurance companies adhere to a 30-day claim settlement timeline. This period begins when all required documents are submitted, and the insurer’s assessment is concluded. Failure to meet this timeframe can lead to the insurer paying penal interest.
What is the most common reason for claim rejection?
While term insurance offers valuable protection, there are key factors that can lead to claim rejection. Ensure complete and accurate information is provided during policy purchase and all forms are properly filled out. Withholding or incomplete information is a leading reason for claim rejection.
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