We consider a number of variables while purchasing a life insurance policy, including the sum assured, the cost, the policy coverage, exclusions and so on and so forth. It's also crucial to understand how to file a claim for life insurance in case the worst happens. The nominee's or family members' knowledge of the claim-filing process is also important.
One of the most essential services that an insurance company may give to its clients is claim settlement. Insurance companies have a legal responsibility to resolve disputes as quickly as possible.
You will be required to fill out a claim form and get in touch with the financial advisor who sold you the insurance. To substantiate your claim, provide your insurer with all required papers, such as an original death certificate and a policy bond.
The majority of claims are paid by sending a check within 7 days of receiving the documentation. You will be told in writing if your insurer is unable to deal with all or part of your claim.
There are two possible situations for submitting a claim: death and the end of the life insurance policy's maturity period. Under all circumstances, the general process for filing insurance claims are listed below.
Claim notification
To allow the insurance provider to begin processing the claim, the claimant must send the written notification as soon as feasible. The claim notification should include basic information such as the insured's name, policy number, the date of death, the location of death, the cause of death, and the name of the person filing the claim.
A claim intimation/notification form can also be obtained through the claimant's insurance agent or from the insurance company's nearest local branch office. Alternatively, some insurance providers allow you to download the form directly from their website.
Documents required
A claimant's statement, death certificate, original policy document, police FIR, certificate and documents from the treating doctor/hospital (for death due to disease), and post mortem report (for death due to accident), and an advance discharge form will be required for claim processing.
Insurance companies may also seek extra papers based on the amount at risk, the reason of death, and the length of the policy.
Submission of documents
It is critical that the claimant presents comprehensive paperwork as soon as feasible in order for the claim to be processed as quickly as possible. A life insurer will be unable to make a decision until all of the prerequisites have been met. The life insurance can make a judgement on the claim once all required documents have been presented.
Claim settlement
According to rule 14 (2) (i) of the IRDA (Policyholder's Interest) Regulations, 2017, an insurer must pay a claim within 30 days after receiving all papers, including any clarification requested.
The insurance company, on the other hand, might make it a habit to settle claims even sooner. If the claim requires further investigation, the insurer must finish its processes as soon as possible, but no later than 90 days after receiving the claim notification, and the claim must be resolved within 30 days.
In the long run, the death claim might be used to pay off any debts or other substantial financial obligations. It can also be observed how the claim settlement procedure might be completed entirely online.
The nominee's first obligation is to notify the insurance company of the insured's death and begin the claim procedure as quickly as feasible. The claim procedure will be made easier if the action is taken quickly and submission of documents is completed correctly.