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Term Life for NRIs: How would claims work in case of death abroad?
Posted By Vishnu Shankar MEMBER 01 Oct, 2021

Let's assume Ayush has purchased a term life plan for a tenure of 35 years in India in 2021. In 2025, he gets a job in the US and relocates there. Since Ayush's dependents (elderly parents) are in India, he continues his Indian term life policy.

Unfortunately, he passes away while in the US in 2026 due to natural causes and is not in violation of the policy terms. How would his dependents go about making a claim?

I'll tell you the reason why I have this question -

From what I've read so far, insurers expect these types of documents during claims:

  • Hospital cause of death certificate
  • Police report
  • FIR
  • Inquest report
  • Post-mortem report etc.

I have three concerns here:

  • Would insurers try to scam their way out of paying claims saying "these documents are issued by authorities of a different country and we only accept documents from Indian authorities" or such excuses?
  • What if certain document types do not exist in the country of death?
  • Example, "FIR" doesn't exist in the US.
  • What if such documentation is available, but is provided in a different language? (eg; Hospital Cause of Death certificate is in Spanish since the death occurred while he was in Mexico)
  • Is there a standard procedure followed in the insurance industry to address this?
  • Example: "Get a copy of the document translated to English and attested by a Gazetted Officer + an affidavit in Rs. 20 stamped paper by the claimant" or something like that?

I'm sure this is not that uncommon of a scenario, as there are many Indians who relocate abroad with dependents back in India.

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