File the claim
The nominee or beneficiary(s) needs to file a claim after the death of the policyholder. To do this, the claim form must be duly filled out. Claim forms are available at the office of the insurance provider and also on their website. If there is more than one nominee, then each has to fill out a separate form. The forms have to be submitted to the insurance company after which the claim process will begin.
Next, the nominee has to submit some documents to the insurance company. First of all, a photocopy of the original life insurance policy is to be submitted. If you cannot find the original policy, you need to obtain the policy number. This can be done by submitting the policy details to the insurance company, who in turn, will search the policy from their records. Then, the nominee has to submit a photocopy of the death certificate of the policyholder. If it was an accidental death, then the postmortem copy, FIR copy and other legal documents need to be handed in. If it was a natural death, hospital documents and doctor's certificates are needed.
The insurance company will then run an inquiry to see if there is any discrepancy. This procedure is not always carried out. It is carried out only if the insurance company feels that the cause of death wasn't natural or violates the terms of the policy. As per IRDA regulations, the insurer has to complete the inquiry in a maximum of 30 days. Beyond that, it will have to pay interest to the deceased's family. If there is no inquiry, the claim process has to be wrapped up within 8 days.
Mentioning the payment option
The nominee has to opt for a payment option. He or she may either choose to receive the entire amount in bulk or go for monthly payments. The choice has to be conveyed to the insurance company, who in turn will make the payments.
A life insurance claim process is simple, if done methodically. Make sure all the documents are in place. You, as a policyholder, must inform your nominee as to where you store your documents so that they know exactly where to look for after you are gone.
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