Term Insurance Claims

When you buy a term insurance policy, you take the one of most significant steps for your family’s financial security. The cover amount they receive, if you pass away, will ensure that all their financial goals and needs are met without them having to run from pillar to post for money.

To get the cover amount as soon as possible, your nominee should be aware of how to make a claim. They should know the process in detail to avoid any hassles at an already emotionally disturbing time.

This article is a step-by-step guide to the claims process. Let’s dig deeper!

Steps Involved in Term Insurance Claim Process

Here are the steps that your nominee can follow to ensure a seamless claim process:

• Notify The Insurance Company
  The first thing your nominee needs to do is intimate the insurance provider about your passing away, so the claim settlement process can begin. The insurer can be informed in one of the ways listed below:

  • Visiting the insurance company’s nearest branch
  • Intimation on the insurance company’s website
  • Contacting the insurer via phone or email
  • Contacting the company’s toll-free number
     
• Filling Out The Claim Form And Submitting The Required Documents
  The next step is that your nominee will have to duly fill out the claim form and submit supporting documents. This can be done either online or offline. Your nominee has to ensure that they have the following documents handy:

In cases of natural death

1. Original policy certificate
2. Copy of death certificate issued by the local authority
3. Address proof of the nominee
4. Photo ID proof
5. Copy of bank passbook and cancelled cheque
6. Copy of medico-legal cause of death
7. Other medical records like discharge/death summary, admission notes, test reports, etc.

In cases of unnatural death

1. Original copy of the insurance policy
2. Copy of death certificate issued by the local authority
3. Address proof of the nominee
4. Photo ID proof
5. Copy of bank passbook and cancelled cheque
6. Copy of medico-legal cause of death
7. Other medical records like discharge/death summary, admission notes, test reports, etc.
8. Copy of the FIR
9. Panchanama
10. Inquest report
11. Postmortem report
12. Driving license

Example,
Rakesh has bought a term insurance policy of Rs. 1 crore with a policy term of 20 years. His son Ramesh is the nominee and during the fourth year of the policy, Rakesh passes away due to a heart attack. Now, Ramesh will have to inform the insurance company about the unfortunate incident and submit basic documents (needed in case of natural death) as mentioned above.

However, if Rakesh had succumbed to injuries and died from an accident, then along with basic documents, the nominee will have to submit other documents like an FIR copy, postmortem report, etc.

• Additional Documents
  Depending on each insurer and the type of claim, your nominee might be required to submit additional documents after they submit the initial set of documents. To avoid any delay in the claim process, the nominee must submit these requested documents at the earliest.

• Claim Approval And Payout
  Once your nominee submits all the requested documents, the insurance company will begin its investigation and determine whether to accept or reject the claim. If accepted, the claim amount will be given to your nominee based on the payout option chosen by you.

  Note: You can have a clear idea from your insurer about the documents required. On getting the detailed list, store the documents digitally in an e-insurance account or on the Digilocker app. You can then share these details with your nominee for a hassle-free claim process.
   

Conclusion

When you buy a term insurance policy, you take the promising step of being responsible for your family. Policyholders should tell their families and nominees about the policies they own and how a claim can be made. We hope this article helped you gain clarity about the steps involved in the term insurance claims process.