All You Need To Know About The Term Insurance Claim Settlement Process

At the time of a term insurance claim, your nominee may have multiple questions in mind, like - Whom should they approach? What are the documents they will need to submit? Is there any time frame to file the claim? 

And given the nature of term insurance, you’ll be completely out of the picture at the time of claim. You won't be there to fix things if something goes wrong. Hence, to avoid any difficulties or last-minute frenzy, it is important that you walk your nominee through the entire claims process so they understand how it works. 

In this article, we explain the documents required for insurance claims. Let’s take a look at the documents your nominee will need to submit and the steps involved in the term insurance claim settlement process.

Let’s dive right in! 

Steps Involved In Term Insurance Claim Process

There are four major steps involved in the term insurance claim process. They are - 

STEP 1: Notifying The Insurance Company

To initiate the claim settlement process, your nominee will have to notify the insurance company about the claim. They can do this in multiple ways, like - 

• Intimation by physically visiting the insurer's nearest branch office 
• Intimation on the insurance company’s website
• Intimation via phone or email
• Intimation via insurance company’s toll-free 

The claim settlement process will begin as soon as the insurance company is informed.

STEP 2: Submitting The Documents

Next, your nominee will have to fill out a claim form and submit it to the insurer. They can get this online on the insurance company’s website or offline at their branch office. 

Along with a duly filled claims form, your nominee will also have to submit several documents to support the claim. 

Documents Required For Term Insurance Claim

Here are the types of insurance documents your nominee will have to submit at the time of claim -

• In case of Natural Death
  • Original policy certificate
  • Death certificate copy given by the local authority
  • Nominee's address proof 
  • Photo identity proof
  • Cancelled cheque
  • Bank passbook copy
  • Copy of medico-legal cause of death
  • Medical records (Admission notes, Discharge / Death summary, Test reports, etc.)
• In case of Unnatural Death
  • Original policy certificate
  • Death certificate copy given by the local authority
  • Nominee's address proof 
  • Photo identity proof
  • Cancelled cheque
  • Bank passbook copy
  • Copy of medico-legal cause of death
  • Medical records (Admission notes, Discharge / Death summary, Test reports, etc.)
  • Copy of FIR
  • Panchanama
  • Inquest report
  • Driving license
  • Postmortem report

As soon as all the documents are submitted, the insurance company will proceed with the claim intimation request. 

STEP 3: Request For Additional Documents 

Sometimes, the insurance company may ask your nominee to submit additional documents to support the claim further. Your nominee should make sure all the additional documents are submitted quickly to avoid any delay in claim settlement.

STEP 4: Claim Approval And Payout

Once all the documents are submitted to the insurance company, they will scrutinise them and decide whether to approve or reject your nominees’ claim. If the insurance company approves the claim, it will be paid as per the claim payout option chosen by you at the time of purchasing the term insurance policy. 

Please note, the documents required for term insurance claim as well as the steps involved in the term insurance claim process may vary across insurance companies. So, ensure you ask the insurer about both these things at the time of purchasing the policy. Once you get the document list from the insurer, you can bring together all the documents and store them digitally in an e-insurance account or on the Digilocker app - and share the account details with your nominee.  

Summing up!

Your nominee will need to notify the insurance company and submit certain documents along with a duly filled claims form. The insurer will evaluate all the documents, and if needed, ask your nominee to submit additional documents. After the document submission is done, the insurer will assess and decide whether to approve or decline the claim. If approved, the claim will be paid to your nominee as per the payout method chosen by you. 

If you have any further questions related to how to claim term insurance after death, you can post them on the Beshak Insurance Forum and get answers from vetted experts, for free!