Talk of life insurance and various things cross one's mind. Tax benefits, retirement benefits, savings and cover against any unforeseen eventualities are just some of them.
But what individuals many a times fail to conceive is what would happen in case the said 'unforeseen eventuality' was to actualise? In that case, filing for a claim in a timely and accurate manner assumes importance.
We have outlined a few guidelines, which will aid individuals understand the intricacies of filing a claim.
There are two kinds of life insurance claims: non-early death claims and early death claims. Early death claims are those, which fall within 3 years of buying the policy.
Non-early death claims are those claims, which fall after 3 years from the commencement of the policy.
Following are some of the important issues to be borne in mind while filing a death claim.
1. Original policy documents
A policy document is issued when one buys life insurance. This is the most important document related to life insurance. It acts as proof of purchase, just like any receipt or challan does for goods bought.
It is imperative for individuals to preserve this document very carefully to file claims (on death or maturity) at a later stage.
Along with this document, other related documents like assignment deeds and nomination deeds will also have to be submitted at the time of filing the claim.
2. Age proof
Proof of age also needs to be submitted to the insurance company while filing a claim. Age proof is generally asked for at the time of issuing a policy document and filed in the company's records; but just in case it hasn't been done, it will be before the claim is disbursed.
3. Death certificate
The insurance company will ask for the death certificate of the deceased. This acts as conclusive evidence that the individual has indeed ceased to survive and that the life insurance cover has now fallen due.
4. Filling the claim form
In case of a non-early death claim, the nominees have to fill claim form no. 3783A.
5. Legal proof of the titleholder
In cases where the person, who has laid claim to the settlement amount, is not an assignee or a nominee, he will have to submit legal evidence of the title to the claim amount.
In cases where the claim is an early death claim, in addition to the above, the following procedures will be followed:
Enquiry
An enquiry will be conducted to probe into the reasons of demise. This is a standard procedure followed by all life insurance companies just to make sure that the demise occurred under natural circumstances and that there was no foul play involved.
The insurance company will not entertain suicide cases within 1 year from the commencement of the policy. The logic behind the 1-year time frame is that insurance companies feel that suicide cannot be planned a year in advance.
Apart from these, the claimant's statement in claim form A in form no. 3783 (this form is different to the one to be filled in case of a non-early death claim), a certificate from the hospital where the deceased was last treated, a certificate of burial (signed by a person who actually saw the body being cremated) and a certificate from the employer of the deceased also need to be submitted to the insurance firm.
Also, for a death claim to be entertained, the life insurance policy, for which a claim has been raised, should be active (i.e. in force) at the time the claim is made.
As obvious as that may sound, it is important, as it is not binding on the insurance company to settle claims made on policies, which are not in force.
Life insurance, unlike any other financial product, is considered as 'sacred' by most individuals. After all, it provides financial security to the survivors. Individuals would not like their loved ones to run from pillar to post to get the security that was envisioned for them by the policyholder.
It is keeping this in mind that all individuals need to know the procedures, which have to be followed in case of claims.
The examples given above are illustrative.
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