Term Insurance Claim Process: Step by Step Guide

Filing a term insurance claim is a process your family needs to understand, as they will be managing it during an emotionally difficult time. Preparing in advance makes the process smoother. Step one is notifying the insurer promptly.

The nominee should call the insurer's claims helpline or visit the nearest branch to intimate the claim. Most insurers allow online claim intimation through their website or app. Step two involves collecting required documents including the original policy document, death certificate issued by the municipal authority, claimant's identity proof and address proof, nominee's bank account details for payout, FIR and post-mortem report if death was accidental or unnatural, and the attending doctor's certificate stating the cause of death.

Step three is submitting the claim form provided by the insurer along with all supporting documents. Some insurers allow online document submission. Step four is the insurer's investigation and verification phase.

The insurer verifies the claim details, reviews medical records, and may conduct an investigation especially if the death occurs within the first three years of the policy. Step five is claim settlement. Under IRDAI guidelines, the insurer must settle or reject a claim within 30 days of receiving all documents.

If investigation is needed, the timeline extends to 90 days. If the claim is approved, the sum assured plus any rider benefits are paid to the nominee's bank account. If rejected, the insurer must provide written reasons.

The nominee can appeal through the insurer's grievance cell, insurance ombudsman, or consumer court. To ensure smooth claim processing, keep the policy document accessible, inform nominees about the policy details, maintain updated nominee information, and ensure honest disclosure during the application process.