Term insurance in India is the most popular life insurance product owing to the high coverage it offers to policyholders at a nominal cost. With a term insurance plan, you can be rest assured that your beneficiaries will be taken care of even if the unexpected happens and you are no longer around to take care of them.
With term insurance plans, you can easily opt for comprehensive coverage that offers multiple add-ons and is structured keeping in mind different requirements you might have. All the features can be yours, at a competitive term insurance premiums that do not pinch your pockets and makes you spend more than necessary. With a term policy, you can also opt for the return of premium option, wherein all the premiums you have paid towards the policy will be returned to you, provided you have paid all premiums and made no claims at all.
What is a term insurance claim?
Term insurance claims are always raised by the policyholder’s beneficiaries when the former is no longer around, owing to unexpected circumstances. Term policies offer a seamless process wherein the beneficiary can avail the death benefit without having to undergo any hassles or difficulties even as they recover from the death of their loved one.
Step-by-Step Process of Term Insurance Claim Settlement
Step 1. In order for the insurer to process your claim at the earliest, it is necessary you inform them of the death of the policyholder as soon as possible. You can either pick up a claim form from the insurers nearest branch or submit it after filling out all the details, or you can also head to their website, download a form and thereby submit your claim.
Step 2. While filing out your claim, you should keep certain documents handy that will be required by you in order to fill out the claim in the best and fastest way possible. These documents are usually mandated by the insurer that you are seeking the claim from, but in general, would include the policyholder’s death certificate, and the original policy documents.
Step 3. If you raise the claim within three years of the policy having been issued, the insurer will in most cases conduct their own personal investigation regarding the circumstances of death. If death occurred owing to a critical illness, the hospital will be required to make the policyholder’s medical history available to the insurer. If the policyholder’s demise was owing to murder or suicide, then you will be required to submit the FIR and post mortem report as well.
Step 4. You should also be informed that every insurer is mandated by the Insurance Regulatory and Development Authority (IRDAI) to pay death claims within 30 days. This duration is counted from the date the policyholder’s nominee submits all the requisite documents and required clarification. If there is a need for additional investigation, then the insurer must complete the investigation process within 60-90 days of receiving intimation of the claim and to settle the claim within 30 days thereafter, failing which the Insurer has to pay Penal interest.
Important Inclusions and Exclusions
Most term insurance plans in India have several listed inclusions and exclusions, which are intimated to the policyholder at the time of the policy being issued and depend on the policyholder’s risk profile.
However, exclusions could also include the cause of death being suicide. It is best to go through the fine print of your policy when it is issued to understand the inclusions and exclusions offered within the term policy.
Documents required for term insurance claim submission
While submitting your term insurance claim, there are several documents you are mandated to submit alongside the claim documents -
The filled-out claim intimation form
The original and attested copy of the policyholder’s death certificate
Original term policy documents
Any deeds of assignments or reassignments, if applicable
Documents of the nominee including Address proof and photo ID proof.
Last medical certificate issued to the policyholder.
All medical records
Bank account proof of Nominee