Understand this before purchasing life insurance

Understand this before purchasing life insurance

Mutual Funds
by 5paisa Research Team Last Updated: 2022-08-08T15:25:52+05:30

Nobody discusses the claim settlement procedure when purchasing life insurance. Continue reading to learn all you need to know about claiming life insurance.

When it comes to life insurance, everyone only talks about its features, how affordable its premium is, and, in certain circumstances, the maturity benefits it provides. However, no one discusses how the insured's family may file a claim or what the life insurance claim settlement procedure entails.

When purchasing life insurance, it is critical to understand the claim settlement procedure. You should also educate your family members on the subject.

Being transparent about your money with your family members would greatly assist them in dealing with the financial situation in your absence. In this post, we will attempt to walk you through the claim settlement procedure in life insurance.

Step I: Inform the life insurance company 

In the case of the insured's death, the first action that their nominee should take is to notify the life insurance company to begin the claim settlement procedure. To do so, fill out the claim intimation form, which is accessible at your local life insurance company branch or may be downloaded from the life insurance company's website. 

The following are the key details that must be supplied to the life insurance company in the claim notification form: 

· Policy number as mentioned in the policy document 

· Name of the life insured 

· Date of death 

· Cause of death 

· Place of death 

· Nominee’s name  

Step II: Documents that are required 

To carry the claim settlement procedure forward, the nominee would be required to furnish the following documents: 

· Death certificate 

· Age of the life insured 

· Original policy document 

· Any additional document required on a case-to-case basis  

Furthermore, if the insured died at an early stage (claims that emerge within three years of the policy's inception), the life insurance company does a few additional procedures to determine whether or not the claim is real. 

We have outlined a few checks that they may do below: 

· If the life insured was hospitalised, the insurer would contact the hospital. 

· In the event of a fatal air crash, the insurer will contact the appropriate airline authorities to ascertain if the insured boarded the trip. 

· Furthermore, if the death was caused by a medical condition, the insurer may require you to submit additional documents such as a doctor's certificate and treatment records. 

· If the insured's death was caused by an accident, murder, or suicide, the insured will request that you provide an FIR report, post-mortem report, police verification certificate, and so on. 

Note: To expedite the claim payment procedure, the nominee should provide all needed documentation to the life insurance as soon as possible. 

Step III: Settlement of the claim 

Regulation 8 of the IRDAI (Policy Holder's Interest) Regulations, 2002 states that upon receipt of all essential papers, including any extra documents requested by the insurer, the insurer is required to settle the claim within 30 days. 

Furthermore, if the claim necessitates further investigation, the insurer must conduct any such inquiry within six months after receiving written notification of the claim.

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