Insurance policies are taken out for preventive protection, intending to support those who depend on us if something unexpected happens.
We pay a premium to secure financial protection through insurance payouts. Certain precautions must be taken when seeking insurance compensation.
Claim Settlement: Insurance companies often fail to honor the promises made while selling insurance policies. They may attempt to evade payout by providing various excuses.
Many people need to be informed whether their insurance company will pay their policy amount correctly or if it will try to evade it by giving excuses.
Additionally, they may need to learn the minimum precautions to secure an insurance claim. While insurance companies differ, most rules are generally the same.
Types of Settlements: There are three main types of insurance policy claims. The first is the maturity claim received after the policy term, the second is the claim paid in the event of sudden, normal death, and the third includes survival benefits during the policy term. After the policy term, there is usually no difficulty in receiving the insurance amount as agreed upon.
A death claim is paid if the policyholder dies while the insurance policy is still active. In such cases, the claims can be categorized into two types: premature death claims and non-premature death claims.
For premature death claims, if the policyholder dies while the policy is active—within two years of the policy’s issuance or renewal—these are considered early death claims.
To initiate an early death claim settlement, the claim forms A, B, B1, C, and E, along with the death certificate and proof of the policyholder’s age, must be submitted to the insurance company.
If the policyholder dies while the early death policy is in effect, the nominees or heirs mentioned in the insurance policy must apply for the claim.
A certificate of inheritance will also be required for this application. The claimant must provide details such as their relationship to the deceased, their age, and the cause of death.
In addition to the claim application, a statement from the doctor who last treated the policyholder must be included. If the policyholder was hospitalized before death, a certificate from the hospital is necessary.
In Form C, a certificate from the cremation site must be provided, along with an employment certificate from the policyholder’s employer and details of any leave taken in Form E.
The policyholder must have paid an additional premium for accident insurance coverage for early death claims to receive benefits.
Accident insurance benefits will apply if death or permanent disability results from injuries sustained. Permanent disability includes conditions such as complete loss of eyesight or the amputation of limbs occurring within 180 days of the accident.
Benefits During the Policy Term: A specified amount is payable after a designated period in money-back policies. The amount received must be within certain limits, and the policyholder must have paid the premium.
The insurance company should be free of arrears for six months. To claim these benefits, the policyholder must submit the policy certificate, a discharge form, a certificate confirming that there are no debts on the policy, and a certificate verifying that the policyholder is current on premium payments from salary savings. The respective salary payment company provides this certificate.
If the policy has debt, the remaining amount will be paid to the policyholder after the outstanding debt and any interest are deducted from the insurance payout.
All payments are processed online. Policyholders must register their bank account details along with their policy information.
For cervical benefits up to ₹ two lakhs, payments can be made without a policy certificate and discharge form. However, if more than ₹60,000 is withdrawn from policies issued before 2010, the policy certificate and discharge form must be submitted.