Life Insurance Claim Process

I was 23 when I was married and settled in Mumbai, the iconic Financial Capital of India. My Husband then was 28. In about 5 years our family size had grown to 4 with two dependent (Parents of my beloved at Nagpur, dependent on him). My husband who started his career as a lower level executive had climbed up the ladder and our life style had changed.

During his career concentration he left me with the job of evaluating our needs, budgeting, meeting the needs of his parents, health expenses etc. I used to evaluate his income with tax payments, liabilities, requirements for the next 20 years and so on. All this came in handy with Life Insurance investment.

Life was beautiful, children were in the best school, had our own home, brand new car and all the luxuries.

My Husband was on a trip to Goa, and instead of flying he chose to drive. Yes he was a good driver but loved to travel at top notch speeds. He was only 40 then. The mobile chimed and since it was from my husband’s phone I said “wow dear, you reached?” The voice at the other end gave the feel that something was not well, and then I fainted.

Now began our woes. Should I go start working? Now even my parents were blaming that I should have been employed but not. As I kept mourning I was convinced that my husband had done his best because he was keen on Life Insurance. Yes, he was Insured for 2crores (of course over a period of time with various policies), home was covered under a term insurance; kids education was covered with policies for education. Now was the real relief. My husband had not left us in lurch. We could live life as we lived when he was alive. His parents were also duly supported.

Thanks to Life Insurance.

How do I calculate my Life Insurance need?

When purchasing life insurance, the question really isn’t how much you need, but how much capital your family will need at the time of your death, which depends on two variables:

1)   How much will be needed at death to meet immediate obligations?

This amount takes into account all final expenses: uncovered medical bills, funeral and estate-settling costs, outstanding debts, mortgage balance and college costs to name a few.

2)  How much future income is needed to sustain the household?

This is the number you’ll arrive at after calculating the “present value” of cash-flow streams your family will need after your death.

What do I do in the event of a claim?

  • Intimation to Insurance company
  • Correctly filling up the claim form
  • Original policy document
  • In case of Natural death, Death certificate from Registrar of Births and Deaths, Legal Heir certificate from revenue department.
  • In case of accidental Death :Death Certificate-from registrar of births and deaths, First Information Report and Inquest Report and Post mortem report from concerned police station and Legal Heir Certificate from revenue department.
  • In case of Suicidal Death :Claims can be made only upon completion of 1st year of the policy: Death Certificate from registrar of births and death, First Information Report and Inquest report and post mortem report from the concerned police station and Legal Heir certificate from revenue department.
  • In case of Murder :Death Certificate from registrar of births and death, First Information Report and Inquest Report and Post mortem report from the concerned police station and Legal Heir Certificate from revenue department.
  • For Points No.4,5&6 in the event of multiple Legal Heirs, the Legal Heir making the claim must produce a No objection certificate from the other Legal Heirs. Kindly note this is imperative even if “nomination” has been duly endorsed in the policy. In cases where the Legal Heir is an adopted person such documents pertaining to adoption must be duly submitted.
  • In all the above circumstances the discharge voucher given by the Insurance company along with copy of bank pass book must be submitted for crediting the claims to the claimants account.

There is a hiccup in the claim settlement, the Insurance Company is refusing payment, now what do I do?

  • Make a representation to the Insurance Company
  • Wait for a period of 15 days and then make a representation to the Grievance cell of the Insurance Company.
  • When reply from the Insurance Company is adverse/ no info make a representation to the Ombudsman who is a quasi judicial authority or move the Consumer Redressal Forum ( Consumer Court).