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How Do I Claim My Term Insurance Plan?

Updated on June 1, 2016

Claim Term Insurance Online

Did you know that the average claim settlement ratio for private insurance firms in India was as high as 95% for the most established firms, while smaller companies averaged 76% claims settled? According to a January 2015 article in DNA India, around 18,000 death claims were rejected in 2014. The article went on to explain that most rejections were due to incomplete or incorrect disclosures made at the time of taking an insurance policy. Another common reason for rejection was that the claim was made within the first two years of the policy being bought. So, how do you ensure that the claim you make does not meet the same fate? Here’s a look at the process that should be followed.

Step 1: Start Right

The first step is to ensure that at the time of buying a policy, the potential policy holder does the basic ground work, such as using a term insurance premium calculator to check for the ideal sum assured, premium amount and so on. It is also important to read through all the fine print and familiarise oneself with the terms and conditions. It is useful to check the claim settlement ratio and customer reviews and feedback. This will help you make an informed choice, such that your loved ones do not face unnecessary hurdles at the time of making a claim. Towards this end, it is important to be truthful while filling in all your information, including information regarding smoking, existing ailments, etc, according to an April 2015 article on AllOnMoney. In the event that any information is proven to be inaccurate or incomplete, the claim is likely to be rejected.

Step 2: Informing the Insurer

There is usually a waiting period of two years from the time of policy purchase, during which time claims are not entertained by the insurer. If your policy has completed this lock-in period, make sure you inform your insurance company of the death of the policy holder as soon as possible. You can do this either by contact the insurance agent, if any, visiting the nearest branch office of the insurance company or contacting the company online, either via their website or their email address. This is also the time when you can check a term insurance calculator to see the maximum death benefits that you are likely to receive. While intimating the company regarding the demise, you will need to provide the name of the policy holder, the policy number, cause of death, date of death and place of death, according to CNBC’s MoneyControl. It is best to check with your agent or the company website for a list of documents and information that you will need to provide.

Step 3: Submitting Necessary Documents

You will need to fill in a claim form and submit the documents that the insurer asks for. The claims for can either be downloaded from the company website or obtained from their branch office or agent. The documents usually required along with the filled-in form include the death certificate of the policy holder, proof of age of the policy holder (if not submitted earlier), the policy document and deeds of assignment or reassignment (if needed). The best course of action is to check with the insurer for the required documents, since they might differ across different companies. In cases of death due to medical causes, you might need hospital documentation and treatment records. On the other hand, for accidental death, if covered by the policy, you might need the specific documentation. For instance, in case of an airplane crash, you will need a certificate from the airline authority, while for death due to a road accident or other unnatural causes, you would need the police FIR or panchnama and post mortem report, according to information provided by the National Institute of Open Schooling.

Step 4: Claim Settlement

According to the IRDA guidelines, insurance companies are required to settle a claim within 30 days of receiving all the required documents, including any clarifications that might be sought by the company, according to insurance provider Bharti AXA. In cases where the claim needs further investigation, the company is required to complete the process within six months of receiving the written claim. Use a term plan calculator, especially if the policy has been used for a loan that is still being repaid, to understand the amount that might be deducted. Most insurers make the claim payment via electronic fund transfer.

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