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Know the brass tacks

Knowing how to make the claim on a life insurance policy can save the bereaved family a lot of hassle at a time of

Knowing how to make the claim on a life insurance policy can save the bereaved family a lot of hassle at a time of
The Sharmas might not have had to make constant rounds of life insurance companies? offices to get the claim amount after Mohan Chand Sharma laid down his life during an encounter at Batla House in Jamia Nagar, Delhi, in September this year. Life Insurance Corporation of India (LIC) proactively sent the cheque for the sum assured on his insurance policy to the martyred police officer?s house even before the bereaved family had approached the life insurance company. This gesture by the life insurance company was their way of paying homage to the martyr. But such agility is usually not evident in normal cases.

The claim process, however simple it may appear at first glance, can cause a lot of anguish if the family is not aware of the procedures or does not possess the information required for making the claim.
As Poonam Bhardwaj, senior vice president and head-underwriting and claims, ICICI Prudential Life Insurance says: ?Claim settlement is one of the most important services that an insurance company can provide to its customers. And claims go a long way towards alleviating the affected family?s financial burdens.?

All-important details
While you might have bought a number of insurance policies to take care of your loved ones in case something happens to you, all these efforts might be futile if the latter aren?t aware of what steps to take for making the claim. ?One of the biggest problems that arise in getting a claim furnished is that the person who bought the policy is not alive. Normally, the claimants are not well versed with the procedure,? says G. Muralidhar, chief operating officer, Kotak Life Insurance.

Keep the nominee informed. Every time you buy a policy you have to name a nominee. While everybody fills that section, not many people inform the nominee (one, that they have bought the policy from a particular insurance, and two, that they have named that person as the nominee). The nominees should be aware of the number of policies you have bought. ?All claim forms generally have a section that asks for details of other polices a person might have. It is very important that the nominee be aware of the details of all the policies,? says P. Nandagopal, chief executive officer, Reliance Life Insurance.

Maintain a record of all policies. In case of a sudden claim, unavailability of policy documents can be quite taxing. ?The insured should maintain a record of all policy documents at one place, which might be required to get the claim furnished. The details of all the policies, and also of other investments, like pass books of deposits made by the insured should be kept at one place that the nominee knows about,? says U.S. Roy, chairman and managing director, SBI Life Insurance.

The procedure
In case of a claim, here are a few steps that can help lessen the confusion and expedite the whole process of getting a claim furnished:
Claim intimation. Usually claim forms do not accompany the policy. So when you buy the policy, make sure that you get the claim form as well and attach it to the main policy document. ?No matter how cruel it may sound, the policyholder should get the claim form and keep a copy of it filled for the claimant, in case the need arises,? says Muralidhar.

In case the claim form is not available, the claimant can get claim intimation from a local branch office of the insurance company or their insurance advisor or the company?s website. ?The claimant must submit the written intimation as soon as possible to enable the insurance company to initiate claim processing,? says Bhardwaj.

Documents required. The claimant will be required to provide claimant?s statement, original policy document, death certificate, police FIR and post mortem examination report (for accidental death), certificate and records from the treating doctor/hospital (for death due to illness) and advance discharge form for claim processing. Based on the sum assured, cause of death, and policy duration, insurance companies may also request for some additional documents.

Settlement of claim. As per insurance regulatory guidelines, an insurance company is required to settle a claim within 30 days of receipt of all documents. Says Bhardwaj: ?As per IRDA, if the claim requires further verification, the insurance company has to complete its procedures within six months from receiving the written intimation of claim.?

In case of no nominee. Usually the claimant is the ominee appointed by the insured at the time of taking the policy. But what happens in case the nominee is not alive? Who can then make the claim? Explains Bhardwaj: ?In case no nomination has been done or in case the nominee is not alive, it becomes an open-title situation. The life insurance company would then require the proof of title or succession certificate issued by the competent court. The claim would be paid to the person specified in the proof. It is very important that the policy holder should provide nomination. It saves the heirs the inconvenience of time-consuming court procedures at the claims stage.?

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First published on: 08-12-2008 at 14:44 IST
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