How to Make a Claim Under Term Insurance Plans?

Updated On Aug 01, 2021

Making A Claim Under A Term Insurance Plan
Last Words

In today’s times, it is imperative to be covered under a term insurance policy so as to provide the much required financial security to the family. But as important it is to buy a term insurance plan, equally important it is to understand the claim settlement process under it.

A term insurance claim is a request that a beneficiary of a term insurance policy files to the insurer during a policy term. Most term insurance companies offer a hassle-free claim settlement process so that the nominee is able to file a claim and get insurance cover without any hassle. Here is the claim settlement process for a term insurance policy, before zeroing down a plan:

Making A Claim Under A Term Insurance Plan

In case of death of the insured, a claim arises under a term insurance plan. To make a claim, following are the steps that shall be taken:

1. Inform the Insurer About the Claim

An insurance company initiates a claim settlement process only after the beneficiary informs it about the same. So, it is imperative that the beneficiary immediately informs the insurance company in case of a misfortunate event, so that the claim settlement process is not delayed. The documents required for initiation of claim are the policyholder’s name, policy number, place of death, name of nominee, etc. The nominee of the policy can either download it from the official website of the insurance company, or get it from the nearest branch office, as per your convenience.

2. Submitting Required Documents

In order to fasten the process of claim settlement in term insurance, you must provide the following documents to the insurance company:

Documents Required For Term Insurance Claim Settlement

Following are the documents that one must keep handy while filing term insurance claim:

Death certificate
Age proof of the policyholder
Original policy documents
Any other relevant document if asked by the insurance company
Passport size photograph of the beneficiary
Identity proof of beneficiary like PAN card, passport, Aadhaar card, etc.
Deeds of assignment or reassignment, if any
Last medical attendant certificate provided by the physician
Post mortem report, if any
Medical records including admission note, test report, discharge or death summary, etc.

If a claim is made within 3 years of policy initiation, then the insurer does a little extra investigation to make sure of its a genuine claim. Here is how:

By enquiring with the hospital that the deceased person was hospitalised or not
If the insured dies due to a critical illness, then the insurer will enquire at the hospital to get details including hospital record, etc.
If any airline crash is reported by the concerned authorities, then the insurer will check with the airline of the policyholder was passenger on the flight

Claim Settlement

According to IRDA (Insurance Regulatory and Development Authority of India), an insurer should be able to settle the claim within 30 days, calculated from the date of submission by the nominee. If the insurance company needs to investigate extra, then the claim settlement process should be completed within 6 months after the documents have been received.

Last Words

A term insurance plan offers protection to you and your family in case of misfortune events. So, it is important to understand the basic facts related to the claim settlement process so that you are able to avail policy benefits when required.