Process of Filing A Claim For Life Insurance

• 23rd Nov 2021
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The main purpose of purchasing a life insurance policy is to guarantee that your loved ones are well cared for when you are no longer around. Though nothing can bring solace in such a situation, having a reliable financial plan in place ensures you have one less thing to worry about, and this becomes a major reason to purchase a life insurance plan for your family. It is a kind of reassurance for them that even though you couldn’t be by their side, the benefits received from the life insurance policy would certainly keep them financially secure.

It’s important to remember that settlement claims don’t just accommodate death claims. They also include other sorts of claims - the most common of which are maturity and rider claims.

Death Claim

After the policyholder’s death, a death claim form needs to be filled out and submitted so that the nominee can avail the life insurance benefits listed under the insurance claim settlement of the policy.

Step 1: Initiation and Form Filling

The nominee should notify the insurance provider as swiftly and early as possible to begin the claim procedure. The death claim form is available locally at the insurance provider’s branch or can be accessed from the firm’s website.

Details To Be Filled Out On The Form -

- Life insurance policy number

- Name of insured

- The Date Of Death

- The Cause Of Death

- Location Of Death

- Name Of Nominee

Step 2: Required Documents For Death Claim

To proceed towards insurance claim settlement, the nominee is required to submit the following documents -

- Filed Death Claim Form

- Certificate Of Death

- Deeds Of Assignment

- Original Policy Document

- Any Other Documents Requested By The Insurance Company

Step 3: Claim Settlement

According to rule 8 of the IRDAI Regulations, 2002, an insurance provider must pay a claim within 30 days after receiving all relevant papers, including any additional documents requested by the insurer for the procedure of settlement claims. If the claim necessitates additional investigation, the insurer must complete its processes within twenty-six weeks of receiving the notification of claim in writing.

TYPES

• Maturity Claim

A life insurance policyholder must send a maturity claim on the policy’s maturity period. To ensure prompt payment, the discharge form needs to be submitted with the original policy even before the maturity date. Upon that maturity date, most firms issue post-dated checks and make the payment via ECS credits.

• The Rider Claim

For added protection, several riders can be added to the main life insurance policy. Premium waiver riders, accidental riders, critical illness riders, and so forth are good examples. Different insurance claim settlement procedures are necessary for individual riders. Some riders, like the accidental death rider, could be valid in conjunction with a death claim. In contrast, others, such as the waiver of premium rider in the event of incapacity, must be processed separately.

• Claim Settlement Ratio

The claim settlement ratio is an important component of life insurance since it determines how much money the nominee will get in settlement claims. Every insurance company has a distinct claim settlement ratio. The total number of claims resolved is divided by the total number of death claims to get the claim settlement ratio. Nevertheless, this should not be the sole consideration when selecting a life insurance policy.

To sum up, the procedure of filing and receiving claim approval is stressful itself during these emotionally trying circumstances. Therefore, to prevent a claim settlement rejection, it is imperative that the claimant be well-versed in the specifics of the whole procedure and the documents required.

- A Consumer Education Initiative series by Kotak Life