All you need to know about Term Insurance Claim Process

Buying insurance loosely translates to buying financial stability in the future. Moreover, the word stability acquires even more importance during uncertain times like the ones we are living in right now. Due to the Coronavirus (COVID-19) pandemic, the world has become full of uncertainties, be it in financial or personal terms. The deadly virus has already affected close to 43 million people across the world, with over million deaths and 10 million active cases as on October 2020^[1].

Closer home, India has witnessed almost eight million people get infected by the virus, the second highest number of cases in the world after the United States of America with ~ 1.2 lakh deaths^[2]. Even though the curve of new infections seems to be flattening, the total number of cases is still on the rise. Moreover, the possibility of a second wave cannot be overlooked given what is happening in the Western countries^[3].

While having term insurance is in itself a necessity, especially if you are the sole earning member of the family and have dependents, the prevailing situation makes it even more crucial. However, what is term insurance? With COVID-19 increasing the risk of something unfortunate happening, it is of paramount importance to secure the wellbeing of your family by having a backup plan for such an eventuality. A term insurance plan just provides that backup.

Term Insurance Claim Process

No matter in how much detail you plan a safe future for your family, if they are not aware of how to make a claim under the term insurance plan, they may yet struggle. Many individuals are not aware of an insurance claim process. There are multiple questions in mind such as what documents are needed? To whom do they approach? What is the time frame to file a claim? Due to lack of this knowledge, many individuals are misled by incorrect or incomplete information and develop a wrong notion about insurance fearing that claims are not fulfilled by insurance companies. Since the beneficiary would still be recovering from the loss of losing a loved one, term or other policies usually have a seamless process with no hassles or difficulties. Here is what you need to know about making a term insurance claim:

1. Any claim under a life insurance policy is always raised by the nominee chosen by the policyholder - could be the wife, husband, offspring, sibling or even parents. Since the claim is filed after the life assured’s death, it is obvious that he or she will not be around to guide the beneficiary.
2. First and foremost, the beneficiary needs to inform the insurer about the death of the life assured. This should be done as soon as possible as it would ensure speedy processing of the claim. With insurers like Bajaj Allianz Life Insurance, you can even download the claim form online on their website without making a visit to their branch.
3. While filling out the claim form, be it in physical form or digitally, you may need some documents, which you should keep handy. These mainly include the life assured’s death certificate and the original term insurance policy documents.
4. After you file the claim form, the insurer may conduct their own personal investigation to ascertain the circumstances of death. This normally happens if the life assured dies within three years of policy being issued. You may have to provide a copy of the FIR and post mortem report if the life assured died an unnatural death.
5. From the date that the beneficiary submits all the details and documents along with the claim form, the death claim has to be issued within 30 days by the insurer as mandated by the Insurance Regulatory and Development Authority of India (IRDAI). If the insurer takes more time, it would have to pay penal interest on the claim amount to the beneficiary
6. However, if there is a need for further investigation, in that case the insurer can take another 60-90 days for the same.
7. One important thing to note is that some circumstances are excluded and may result in rejection of the claim. Therefore, it is important to read the policy document carefully before making any claim. For example, exclusions could include suicide as the cause of death.

Documents Required for the Claim

Apart from the claim form, the death certificate and the original policy document, some other documents may also be needed for making a term-insurance claim. Therefore, it would be wise to keep them handy. The insurer may ask for the identification documents of the nominee and the address proof. It could also ask for the last medical certificate issued to the life assured and his or her medical records, but that is only in rare or exceptional cases. For making the payout in case of a successful claim, the insurer would also ask for the bank details of the nominee.

Insurers like Bajaj Allianz Life Insurance have a really simple and quick claim process where not only can you file your claim digitally, but can also track the status of your claim online. You would also get live updates of your claim status via SMS. The company also boasts of approving most of their claims within one working day. Moreover, with a claim settlement ratio of 98.02%^~, you could be rest assured that not only your claim would be approved if all things are in order, but it would be approved quickly and without any hassle.

In addition, one of the advantages of buying a term insurance from Bajaj Allianz Life is that all its insurance policies cover death caused due to COVID-19*.

So in these uncertain times, bring some security to your life by opting for a term life insurance plan. Since among other life insurance products, term insurance offers higher life coverage for the same amount of premium, you can be rest assured that your family would have enough money not only to make ends meet, but also to have a good and stable life. Moreover, with the right insurer, they would not need to worry about the complications of making a claim. While one cannot put a price on life, a term cover would make sure in your absence that in some ways, you are there for them.

Source:

[1]https://www.worldometers.info/coronavirus/

[2]https://www.worldometers.info/coronavirus/country/india/

~ Individual Claims Settlement Ratio for FY 2019-2020

*Health Insurance Policies of Bajaj Allianz Life

Disclaimer: This content is distributed by external third-parties. No TNIE Group journalist is involved in the creation of this content.