LIC of IndiaClaim Settlement

Death Claim Settlement Guide – LIC of India

(Last Updated On: February 10, 2019)

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
  1. Intimation of Death claim to LIC
  2. Supply of required forms based on early/ non-early nature of the claim
  3. Submission of the duly filled forms along with required supporting documents.
  4. Conducting an enquiry if inevitable.
  5. Decide on settling or repudiating the claim based on the enquiry and documents.
  6. 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.

death claim intimation letter model
Death Claim Intimation Letter model – LIC

Download model death Claim Intimation Letter.

Documents required for settling Death Claims (Both early and non-early claims)
  1. Death intimation letter (as given above).
  2. Policy bond or document. ( in Original)
  3. Death Certificate.
  4. Discharge form (form no 3801 )duly executed by the nominee.
  5. Claim form No. 3783 A.
  6. NEFT form ( National Electronic Fund Transfer form) for transferring the claim amount in the account of nominee after the settlement of the death claim.
  7. Claimant’s Proof of relationship with the deceased.
  8. 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.

  1. If the deceased was an Employee, Employer’s certificate on Form No. 3787( Revised )
  2. 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.

  1. The claim must be lodged with LIC OF INDIA within 120days from the date of death.
  2. Attested copy of F.I.R., Post Mortem report duly attested by the competent court or civil police is required.
  3. 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

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.

12 thoughts on “Death Claim Settlement Guide – LIC of India

  • Accidantal death clam me lic closer report ki jaruret hoti he kya?

    • Hi Archana,
      Can you make your question little more clear? For accident claims, FIR and postmortem report may be required.

  • सर मेरे जीजाजी की death 1 मार्च 2003 को हुई उस समय बीमा पॉलिसी चालू थी लेकिन उस समय हम क्लेम नहीं कर पाए वह पॉलिसी हमें बाद में मिली उसकी मैच्योर डेट 31 जुलाई 2019 है क्या उसमें डेथ क्लेम किया जा सकता है उनका ऑन ड्यूटी एक्सीडेंट हुआ था यदि डेथ क्लेम किया जा सकता है तो क्या क्या प्रक्रिया करनी पड़ेगी

    • Hi Thakra ram moondh,
      I understand that you could not claim the death at the time of death due to the non-availability of Policy documents. You can very well claim the amount now. Give a death intimation at the branch office showing the reason for not claiming it earlier. Submit Policy document, Death certificate etc. along with the intimation. If it is an accident claim you can claim the double accident benefit also.
      (मैं समझता हूं कि आप पॉलिसी दस्तावेजों की अनुपलब्धता के कारण मृत्यु के समय मृत्यु का दावा नहीं कर सकते थे। अब आप बहुत अच्छी तरह से राशि का दावा कर सकते हैं। पहले दावा न करने का कारण बताते हुए शाखा कार्यालय में मृत्यु की सूचना दें। इंटिमेशन के साथ पॉलिसी डॉक्यूमेंट, डेथ सर्टिफिकेट आदि जमा करें। यदि यह एक दुर्घटना दावा है तो आप दोहरे दुर्घटना लाभ का भी दावा कर सकते हैं।)

  • hi
    sir my self chirag i want to know more about section 45 ( listen from policy bazaar executive ) . i want to know the procedure of claim settlement and also want to difference between private company and lic claim settlement.

    • “According to Section 45 of the Insurance Act, 1938, no life insurance policy can be called into question on grounds of misstatement or wrong disclosure after two years of the policy coming into force. However, if the insurer is able to prove that the claim was fraudulent, it need not be passed”. Even though this clause is there private companies sometimes deny the claims. The nominee will have to approach court or Ombudsman to get redressal of such grievances.
      Please read this article on claim settlement of insurance companies in India. Also, you can read Claim settlement guide LIC of India.

  • How many days are required to get the letter from lic company after the submition of intimation letter of death of insured person??

    • If all documents are submitted and if the claim is not early claim(Death within 3 years from date of commencement), the claim can be settled within 2 days.

  • for early claim process of natural death due to carona, after submitting all the required documents to the branch how many days it will take for verification process.

    • There is no predefined time period for the inquiry process but usually, it is completed within a period of 45 days

  • My elder brother is expired, he has LIC policy but the nominee of policy was my father and he has also expired.
    Now we want to claim policy in the name of my brother wife .
    Please explain procedure and form required

    • Brother’s wife can proceed with the claim of the policy. Get a legal heirship certificate of the brother and LIC will settle the claim to the legal heirs based on that.

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