Claim Settlement Process

A term plan's job is fulfilled by exactly one event — the death claim. Making sure the claim actually pays out is about the choices you make at proposal stage and the paperwork your nominee will need.

Step-by-step (for the nominee)

• Inform the insurer with the policy number and the date and cause of death — most insurers have a dedicated bereavement helpline.
• Submit the death claim form along with the original policy document, death certificate (issued by municipal authority), nominee's KYC and bank proof.
• Provide medical records — and for unnatural deaths, an FIR and post-mortem report.
• Insurer verifies. For policies less than 3 years old, an investigation is common — cooperate fully.
• On approval, the sum assured is credited to the nominee's account. IRDAI mandates strict service timelines.

How to make this easier

• Tell your nominee the policy exists — and where the policy document is stored.
• Keep KYC + bank proof handy. ECS-linked policies make payout faster.
• Disclose everything at proposal stage. Non-disclosure is the single biggest reason for claim rejection.
• Pick insurers with a Claim Settlement Ratio above 97% on individual death claims for the last 3 years.