Death Claim Settlement Guide – LIC of India. ‘Insurance coverage‘ is the most important objective and purpose of an insurance policy. Future is unpredictable and unfortunate events can occur at any time in life. If such an event happens, the Insurance company is bound to settle the claim at the earliest. As per IRDA regulations, after receiving the documents, the claim should be settled in 30 days, provided it is non-early & natural death and no investigation is required.
You can help the insurance company to settle the claim faster, if you are aware of the claim settlement process and provide the required documents promptly. This article is intended to provide you a complete guide on the claim settlement process of any life insurance company with particular emphasis on LIC of India.
Death Claims are primarily categorized into early and non-early claims by insurance companies. Early claims are the claims which happen within three years from the date of commencement or revival of the policy (whichever is later). All other claims are categorized as non-early. For early claims, the insurance company may conduct an enquiry before settling the claim. For accident claims few more additional procedures may be required.
Steps involved in settling a death claim in LIC of India
- Intimation of Death claim to LIC
- Supply of required forms based on early/ non-early nature of the claim
- Submission of the duly filled forms along with required supporting documents.
- Conducting an enquiry if inevitable.
- Decide on settling or repudiating the claim based on the enquiry and documents.
- Crediting the amount to the nominee’s account for settled claims / issuing a letter for repudiated claims stating the reasons.
How to intimate a death claim to LIC of India
The nominee should intimate the insurance company in writing about the occurrence of the death claim in a specified format. The intimation letter should contain the date, place, and reason of death along with the policy number. A model of the death claim intimation letter is given below.
Download model death Claim Intimation Letter.
Documents required for settling Death Claims (Both early and non-early claims)
- Death intimation letter (as given above).
- Policy bond or document. ( in Original)
- Death Certificate.
- Discharge form (form no 3801 )duly executed by the nominee.
- Claim form No. 3783 A.
- NEFT form ( National Electronic Fund Transfer form) for transferring the claim amount in the account of nominee after the settlement of the death claim.
- Claimant’s Proof of relationship with the deceased.
- Identity/ Burial certificate by a person who attended the funeral, except the relative of the deceased on Claim Form “C”. (Form No. 3785 revised).
Additional documents required for settling early claims
Early claims are the claims which happen within three years from the date of commencement or revival of the policy (whichever is later). Following additional documents may be required for early claims.
- If the deceased was an Employee, Employer’s certificate on Form No. 3787( Revised )
- Treatment certificate issued by the Hospital/ Attending physician’s certificate on the claim from B1 ( Form No. 3816) & B ( Form No. 3784 revised).
Death claims which occur within a period of two years are considered as very early claims and may require an enquiry from the insurance company.
Double Accident Benefit – Special Procedures
Double Accident Benefit (DAB) is a rider which provides one additional sum assured in case of accidental death at a small extra cost. Generally, DAB is added to all policies at the time of purchase. In order to get Double Accident claim amount following additional documents also has to be submitted.
- The claim must be lodged with LIC OF INDIA within 120days from the date of death.
- Attested copy of F.I.R., Post Mortem report duly attested by the competent court or civil police is required.
- Spot panchnama & eyewitness statement. The claim will be admitted after acceptance and verification of the above-mentioned documents by LIC & clearance by the concerned SDM.
If you require any more clarifications, you can use the comment section to ask for more information.
Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.