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Endowment Insurance Claim Settlement Process Explained

A claim is an official request notifying the insurer of paying the premium on a regular basis conditions included in the policy's document schedule. It is usually considered the last step or final obligation of an endowment Insurance plan.

It is reported by the nominee of the policyholder and goes through various stages to achieve fruition. This article can be referred to as a guideline of the endowment policy claim settlement process.

Endowment Insurance Claim Settlement Process Explained

Given below are the steps by which a claim settlement process functions

  • Initiation of a Claim

A claim that might have originated from various reasons needs to be registered with the insurance company.The important documents that are generally required to be produced by a claimant in support of a claim are listed in a life insurance policy.

It should be noted that the claim should be sent out in a written format.

  • Investigation of the Claim Report

Upon receiving the claim, the Insurance company will initiate a process of warrant to cancel out any possibilities of foul play. This process usually completes within six months from the time of lodging the claim.  The nominee is asked to produce relevant  documents, and is notified if any inconsistency is found. The claim appraisal is an important step in determining if the claim will be pursued. To move the process along, the nominee may be required to submit reminder letters.

  • Claim Settlement

Within 30 days of receipt of all applicable paperwork and clarifications, a claim under an endowment policy is paid or disputed, with applicable reasons. In the instance of a death claim, the payment of the claim is normally initiated after a thorough examination of the required documents, which might include a proof of death certificate from the municipal authorities. Payment methods differ from one company to the next and are tailored to the needs of the individual.

Cases of Premature Claim

If the death happens within two years after the policy's inception, or last revival,  it is considered a premature claim. Certain precautions are taken by the insurer before making a payment in such a precarious situation. In this case, the nominee might also need to present the documents of the policyholder's medical conditions to prove the absence of any pre existing disease.


The process of claim settlement under an endowment policy is easy to follow, provided that the documents presented are relevant to the claim raised. Insurance companies usually take initiatives to assist the nominee through the entire process till fruition. 

Also read 

Top 3 Reasons Why You Should Go For An Endowment Plan

Everything You Need To Know About Endowment Policy

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.        

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