When you buy a term insurance policy, you may invariably compare different plans from different insurance companies and choose the one that offers high coverage at an affordable price. However, apart from comparing the premium price, coverage provided, and the policy benefits, another important aspect you must consider is the claim settlement process.
Many families struggle when filing a term insurance claim. While you would not be around to witness the chaos, you would want to ensure that your family gets the policy benefits without any hassles. It is vital to know about the process to avoid any hiccups during the claim settlement. Let’s discuss the steps involved in filing a term insurance claim online.
Step 1 – Informing the insurance company
To initiate the claim settlement process, the nominee must inform the insurance company about the policyholder’s demise as soon as possible in writing through e-mail or the insurer’s online portal. While reporting, the nominee must provide essential details such as the policyholder’s full name, birth date, policy number, date, time and cause of death, and relation with the deceased policyholder.
After informing the insurers, the nominee must fill the claim applicant form, which is generally available on the insurer’s website.
Step 2 – Get the documents ready
After submitting the claim form, nominees must keep certain documents handy for the claim settlement process. Some of the critical documents that the insurers generally ask include:
- Policyholder’s age proof
- Death certificate
- Copy of the policy documents
If the nominee files for a claim within three years of buying the policy, the insurer will investigate to ensure that the claim request is genuine by:
- Cross-checking with the hospital to ensure that the deceased policyholder was admitted
- Asking the hospital to provide the individual’s medical records, doctor’s prescriptions and treatment records.
- If the policyholder passes away in an air crash, the insurer will confirm with the airlines if they were a passenger in the flight.
Step 3 – Submitting the documents
After the insurance company finishes the investigation and verification process, they inform the nominee if the request is approved. At this stage, the nominee must comply with the documentation process. They must submit the following documents.
- Copy of the death certificate issued by the local municipal authority and an attested copy of the same.
- Copies of all policy documents
- Nominee’s passport size photograph
- Nominee’s ID proof, such as PAN card, driving licence, Aadhaar Card, Voter ID, etc.
- Post-mortem report (if any)
- Copies of deceased policyholder’s medical records
- Medical certificate issued by the hospital mentioning the exact cause of death
The insurers verify your claim request based on the documents you provide. And, if everything is okay, they will proceed with disbursing the death benefit amount.
Step 4 – Claim settlement
If the nominee delays filing the claim, commits any mistake in the claim application form or fails to provide any document, the claim settlement process will be delayed. However, if they correctly comply with all the processes, the insurer settles the claim request within 30- 60 days for all term insurance plans.
When you apply for a term insurance policy, you must provide details of your health condition, family medical history, income, lifestyle habits, profession, etc., in the application form. If any of the information you give is false, incomplete or undisclosed, the insurer has the right to reject the claim.