How To File A Term Insurance Claim With LIC?
LIC has been the face of life insurance in India for decades now. It is the largest Insurer in India by a fair margin, with a majority market share. In fact, for several people, LIC is synonymous with Insurance - and is used interchangeably in conversations.
The term life insurance product sold by LIC - the LIC Tech Term plan is one of the 14 products we’ve listed on Beshak⭐Ratings. This plan provides your family with a fixed sum of money if you pass away during the policy term. LIC allows you to customise the plan with features and benefits like increasing cover, limited pay, accidental death benefit rider, etc.
You can get a detailed, 360-degree picture of the features, benefits, and drawbacks of this plan as well as the insurer on Beshak⭐Ratings. You can also compare the product with other top term insurance plans in the market.
In this article, we explore the process of filing a death claim with LIC and discuss -
- How does the LIC death claim process work?
- Is the LIC death claim application format different from other insurers?
- What are the documents your nominee will have to submit to get the term insurance claim amount?
So, let's begin!
What Are The Steps Involved In Filing A Death Claim With LIC?
There are four main steps involved in the LIC death claim process.
1️⃣ Claim Intimation
The first step in filing a claim with LIC is informing the insurance company about the claim. This can be done in multiple ways -
- Online through the insurer's website.
- By contacting the insurer via phone or email.
- By physically visiting the insurer's nearest branch office.
As soon as your nominee notifies the insurance company, LIC will generate a unique claim ID for your policy and the claim will be initiated.
2️⃣ Filling The Claim Form
Next, your nominee will have to fill out a claim form. The claim form will be available in both Hindi and English. And in case a term insurance policy has been in force for 3 or more years, LIC provides a separate claims form - that is shorter and simpler.
This means your nominee or family is likely to face fewer hassles during the claim settlement process, and the claim will probably be settled quicker too. No other insurance company in the market has this offering, and we strongly believe that they should take a leaf out of LIC’s book, and replicate this feature.
Note: The above facility is in line with Section 45 of the Insurance Act, which states that once a life insurance policy completes 3 years, a claim cannot be rejected by the insurer for any reason whatsoever. In essence, this means that the insurer is forced to pay this out to your family, and hence there would be no need for them to waste any time in an investigation. Hence, the shorter form by LIC - causing little hassle during claim settlement.
3️⃣ Submitting The Documents
Besides a duly filled claims form, your nominee will have to submit several documents to support the claim. And they will have to submit these documents at the nearest LIC branch either via their Agent or by themselves visiting the branch office.
Here’s a list of some common documents your nominee will need to submit during the claim settlement -
- Claimant’s statement giving details of the deceased and the claimant
- Certified extract from Death Register
- Documentary proof of age, if age is not admitted
- Evidence of title to the deceased’s estate (if the policy is not nominated, assigned, or issued under the Married Women’s Property Act)
- Original policy document
Additional documents in case the death occurs within 3 years of taking or reviving the term insurance policy -
- Medical Attendant’s Certificate
- Certificate of Identity and burial or cremation - completed and signed by a person of known character and responsibility
- Certificate by Employer if the assured was an employed person.
Additional documents in case of accidental/ unnatural death -
- First Information Report (FIR)
- Postmortem report
- Police Investigation Report
In some cases, the insurance company may ask your nominee to submit some additional documents to verify the claim further.
4️⃣ Claim Approval And Payout
Once the insurance company receives all the documents, they will assess them and decide whether to approve or reject the claim. If the claim is approved, it will be paid to your nominee as per the claim payout option chosen by you at the time of buying the term insurance policy.
Summing up!
There are 4 main steps involved in the LIC death claim process - notifying the insurer, filling the claim form, submitting the documents, and claim processing cum settlement. Also, LIC is the only life insurance company that provides a shorter and simpler claims form if a life insurance policy has been in force for 3 or more years. This is in line with Section 45, which states that an insurer cannot reject a death claim if a policy completes 3 years.
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- The first step in filing a claim with LIC is notifying the insurer about the claim.
- The second step is filling out the claim form. If the term plan completes 3 years, LIC provides a separate claim form that is shorter and simpler.
- The facility of the separate form by LIC is in line with Section 45, which states that an insurer cannot deny a death claim if a life insurance policy completes 3 years.
- Besides a duly filled claims form, your nominee will also have to submit several documents.
- The insurer will then evaluate the documents and approve/ reject the claim. If approved, your nominee will receive the claim as per the chosen payout option.
Aakansha is a Content Ideator and Writer at Beshak. With her easy-to-understand content, she makes insurance simple for everyone. She comes with a strong background in finance and commerce and wants to help families make positive insurance decisions that are good for a lifetime.