According to the latest Annual Report for IRDAI, “global direct premiums surpassed the USD 5 trillion mark for the first time in 2018.” In the global insurance market, life insurance and non-life insurance have nearly the same share - life insurance is 55% of the market, while non-life insurance is 45% of the market. In India, the numbers are very different. Of the total premiums paid every year, 73% are paid to fund life insurance plans, while the rest are directed to non-life policies.
IRDAI’s Annual Report also noted that in 2019, close to 3 crore new life insurance policies were issued by insurance providers in India. This rise in the purchase of life insurance policies can be attributed to increasingly affordable plans, innovative solutions, and groundbreaking technology. Now, with the click of a button, one can browse various policies, apply for a policy, and more.
A death claim in insurance is a document that formally requests that insurance benefits be granted to the nominees of a life insurance policy. When someone insured under a life insurance policy passes away, the legally entitled nominees are entitled to the policy's benefit amount. To get that amount, the nominees have to visit the claims department of an insurance company and give them proof of the insured's death. They can then make a claim to receive the policy benefit based on the terms of the life insurance policy.
The process of death claims, too, has been made simple, speedy, and completely hassle-free for the policyholder. Insurance providers are tuning in to the wants of policyholders and are understanding the urgent need for an effortless claim process that does not add to the burden of beneficiaries in trying times. To this end, one of the measures has been to simplify and make the documentation process transparent.
Here are some of the necessary death claim documents:
The death claim settlement ratio (the amount of approved death claims) in India was 98.45% in 2022-23.
Source: The Economic Times
The death claim process requires the nominees to complete several steps to get an accurate and timely settlement. The insurance nominee must first inform the insurance company of the policyholder’s demise to obtain a claim form. Then, the claimant must fill out the form and obtain some documents as proof of the policyholder’s passing. Finally, the nominee must also provide the insurance company with medical and police reports if necessary.
After submitting the documents and claim form, the insurance company will verify the given documents. An investigation could be conducted by the insurance company if they think the death was suspicious in any way.
Once the verification process is finished, the insurance company can either approve or reject the death claim. If the claim is approved, the claim account will be transferred to the nominee, usually through electronic transfer. If the claim gets rejected, the nominee can either follow up with the insurance company, or approach either the Insurance Ombudsman, or the IRDAI to resolve the issue.
The death claim process is designed to ensure that beneficiaries receive their due benefits with no hassle on any end.
But, these days, death claims are processed very efficiently - the average claim settlement ratio in India, which hovers above 97%, is a testament to that. As an underinsured country, Indians need to familiarise themselves with the process of filing life insurance claims.
In addition to understanding the death claims process, to make the most of the life insurance policy, it is also crucial that one must understand the various benefits associated with it. Look at the list below for the many benefits of funding a life insurance plan:
Wise financial planning must begin with life insurance. Now that you’re acquainted with the benefits of life insurance, as well as the claim settlement process, you can take the next step toward securing your family’s financial future. Life insurance plans can be a tool for getting risk coverage, instilling a savings habit, and growing wealth. The iSelect Smart360 Term Plan from Canara HSBC Life Insurance lets you avail yourself of tax benefits as well as flexible premium payment benefits. You can add greater protection to your plan by opting in for additional riders as well. It’s the right match of convenience and affordability.
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
After the policyholder's death, the policy's nominee should send a claim intimation along with the required documents like death certificate, policy document, and nominee details to the insurance company as soon as possible.
The IRDAI mandates that insurance companies must settle death claims within 30 days of the claim intimation.
The death benefit is an assured amount of money given to the nominee of a life insurance policy after the demise of a policyholder.
You cannot claim insurance after one year of death. It is mandated that you must claim insurance within 30 days of the policyholder’s demise.
The minimum death claim refers to the guaranteed amount that beneficiaries receive upon the policyholder's death. It typically depends on the insurance policy's terms and can vary widely between different insurers and types of policies. Reviewing your specific policy documents for accurate details regarding the minimum death claim amount is crucial.
Postmortem is only necessary in case of death due to an accident or if an unnatural death has occurred.
30 days is the minimum time to make a claim on life insurance policies.
