How a family claims life insurance after a death

When someone with a life insurance policy dies, the money goes to the person named as nominee. To get it, the nominee informs the insurer, fills in a claim form and submits a few documents. After that, the law gives the insurer a deadline to pay. Knowing the steps makes a hard time a little easier.

The steps. Inform the insurer as soon as you can, online, through the agent or at a branch. The insurer will send or point you to its claim form and list of documents. Submit them, and the clock is running.

The documents. IRDAI’s 2024 Master Circular on policyholder protection lists the usual ones: the claim form and the death certificate, plus the FIR and post-mortem report if the death was an accident, and the hospital discharge summary if the person died in hospital. Insurers must state exactly what they need in the policy document and on their website, so you aren’t asked for surprises later.

The deadlines. The same circular sets them. A death claim must be paid within 15 days of intimation. If the insurer decides the claim needs investigation, the limit is 45 days. If it misses the deadline, it owes you interest at the bank rate plus 2% from the date you informed it, paid along with the claim without you having to ask.

Did you know? A life policy can’t be questioned on any ground once three years have passed from its issue, revival or rider date, whichever is later, per IRDAI’s 2024 life products master circular. And no claim may be rejected or closed just because documents are pending or the death was reported late.

If there’s a loan on the policy. If the policy was assigned to a lender, IRDAI’s rules say the nominee should check the assignment is valid and the loan balance, let the insurer pay only the outstanding dues to the lender, and have the rest paid straight to the nominee’s bank account.

If you think a policy exists but can’t find it. Unclaimed amounts can be searched on IRDAI’s Bima Bharosa website or on the insurer’s own site. Keeping your nomination and bank details up to date, and telling your family which policies you hold, saves them this search.

If the claim goes wrong. Complain to the insurer first. If it isn’t resolved, the insurance ombudsman is free and can order the insurer to pay.

The takeaway. Inform the insurer early, submit the listed documents, and hold the insurer to its deadline: 15 days for most claims, 45 with investigation, and interest if it’s late.

More to read: term insurance, nomination, how insurance works, and surrendering a life insurance policy.