ULIP or a Unit-Linked Insurance Plan is a life insurance product that along with a risk cover for the policyholder also provides investment benefits. This kind of plan offers both maturity and death benefits to the policyholder. Depending on the terms of the policy, the nominee receives one among the following:
- sum assured
- the higher amongst the sum assured and fund value
- the sum assured and the value of the fund
However, any and all of these proceeds are a tax-free income.
The process of claim in case of the policyholder’s death during the policy term can take about a few weeks or even a few (three to four) months if all the formalities are duly completed and documents are in place. In order to ensure a smooth settlement of the claim for the death benefit of a unit-linked insurance plan, you need to follow the following steps:
Intimate your insurance provider
As a beneficiary, it is essential that you immediately and formally intimate the insurance company about the decease of the policyholder (if it happens during the term of the policy). Any delay in the same might lead to complications in the process of claim settlement.
Fill up the claim form
The next major step is to timely submit the duly signed claim form along with all the necessary documents to support the claim. In order to ensure swift settlement of your claim, ensure that you provide all the essential information such as insured person’s details; time, date, place, and reason of the policyholder’s death; in a ombre coffin nails, your basic information, and the policy number. For the claim to be formally registered, it is mandatory that the information you provide in the claim for is accurate and complete.
A claim intimation form can be collected from the nearest branch of the insurance company or the representative or the agent of the company. Nowadays, most insurance companies have the claim form available online and can be downloaded from their website.
Submit the required documents
The major documents to be provided by the claimant include a claimant’s statement, the original policy document, copy of the death certificate, post mortem report and police FIR in case the death was accidental, medical certificates and records validated by the doctor/hospital in case the death happened due to medical reasons, and address proof and photo ID of the claimant. Insurance companies might also request for some additional documents depending on the amount of the cover, reason of death and policy term.
To ensure faster processing of claims, the claimant is required to submit these documents as soon as possible. This is because the insurer can come to a decision only after all the relevant documents are presented.
Settlement of claims
As per the regulations laid by IRDAI (Policy holder’s Interest, 2002), the insurer has the right to seek clarifications within a time period of 15 days and settle the claim within a time period of 30 days from the date of receipt of all the relevant documents. However, the insurer gets a time period of 6 months in all to settle the claims in case any further investigation is required.
Things to know:
- As per IRDA regulations, it is mandatory to make the claim payments only through electronic modes.
- Insurance companies have the leverage to set up internal timelines; however, these timelines cannot exceed the timelines laid by
- An insurer has the right to reject claims if the facts are misinterpreted or not disclosed were such that that could impact the insurer’s decision.
