Life Insurance Corporation of India Claim Settlement
Life Insurance Corporation of India (LIC) is one of the oldest and trustiest life insurance companies in the country. Often the policy-seekers prefer this company because of its claim settlement ratio (98.62% as per the IRDA Annual Report in the financial year 2020-2021) and quick and smooth claim process. It is needless to say how important the claim process is for a policyholder. So, if you are a policyholder of LIC, then this article going to be very useful for you as here, today we are going to talk about each detail that you need to know about the claim procedures of this company.
Claim Process of Life Insurance Corporation of India Claim Settlement
Have a look at the below mentions to know about the different claim processes that this insurer offers.
- If you have an endowment type of Policy, the amount is payable at the end of the policy period.
- In that case, the Branch Office, that services the policy, sends out a letter to the insured person informing him/her about the date on which the policy money is payable at least two months before the due date of payment.
- in that, the policyholder is requested to return the Discharge Form duly completed along with the other required documents, such as the Policy Document, NEFT Mandate Form (Bank A/c Particulars with supporting proof), KYC requirements, etc.
- Once the company receives all the necessary documents, the payment is processed in advance so that the maturity amount gets credited to the policyholder’s bank account on the due date.
- There are some plans like Money Back Policies, which provide for periodical payments to the policyholders along with the Survival Benefit, which is subject to the terms and conditions of the company.
- In that case, if the amount is payable up to Rs.500,000, payments are released without calling for the Discharge Receipt or Policy Document.
- Survival Benefit under certain policies like the Jeevan Anand policy up to Sum assured Rs. 200000 is also released without calling for a policy bond or discharge form.
- The company pays the death claims only if the policy is an active policy which means all the premiums are paid up-to-date or where the death of the insured person occurs within the days of grace.
- For a death claim, the company has to be informed as soon as the unfortunate incident happens.
- Then the company will inform the family of the deceased person to produce all the necessary documents.
- Once the insurer receives all the required documents, the claim will be initiated.
- If no discrepancy is found, the claim amount will be settled within the stipulated time.
The required documents for the death claims are as followed:
- Claim form A – Claimant’s Statement giving details of the deceased and the claimant.
- Certified extract from Death Register
- Documentary proof of age, if age is not admitted
- Evidence of title to the deceased’s estate if the policy is not nominated, assigned or
- issued under M.W.P. Act.
- Original Policy Document
If the death occurs within three years from the date of risk or from the date of revival/reinstatement, LIC will need the following additional documents.
- Claim Form B – Medical Attendant’s Certificate to be completed by the Medical Attendant of the deceased during his/her last illness
- Claim Form B1 – if the life assured received treatment in a hospital
- Claim form B2 – to be completed by the Medical Attendant who treated the deceased life assured prior to his last illness.
- Claim Form C – Certificate of Identity and burial or cremation to be completed and signed by a person of known character and responsibility
- Claim form E – Certificate by Employer if the assured was an employed person.
- Certified copies of the First Information Report (FIR), the Post-mortem report, and the Police Investigation Report if death was due to accident or unnatural cause.
Double Accident Benefit Claim:
- It is a type of additional benefit to the life insurance cover. But to avail of this benefit, the insured person has to pay an extra premium of Rs. 1 per Rs. 1000 sum assured.
- if you want to file a claim to enjoy this benefit, then you have to produce the required proofs that need to satisfy the terms and conditions of the Corporation, which are already mentioned in your policy documents under the accident segment.
- Usually, the required documents for this type of claim are FIR, Post-mortem reports, etc.
Disability Benefit Claim:
- This benefit includes the waiver of future premiums under the policy. In the case of extended disability benefit, an addition of a monthly benefit amount is paid as per the terms and conditions of the policy.
- for availing of this benefit while filing the claim against it, the mandatory condition is that the disability has to be total and permanent, which will bar the insured person from earning any wage/compensation or profit as a result of the accident.
What Is The Function of Claims Review Committee Under Life Insurance Corporation of India?
The followings are the functions of this special committee.
- The Life Insurance Corporation of India has created a claims review committee that will envisage the cases of any misleading information or fraudulent claim.
- Apart from that, if the life assured or his/her family is not satisfied with the claim decision of the Corporation, this committee of the zonal office and the central office comes into action to investigate the claim further.
- Usually, the learned members of the Corporation and a retired High Court or District Court Judge become the members of this committee. This helps to maintain the transparency of the claims.
What Is An Insurance Ombudsman Under Life Insurance Corporation of India?
With the appointment of the Insurance Ombudsman at different centers, the Grievance Redressal Machinery has been made stronger and expanded by the Government of India. As per the present data, there are 12 centers operating all over the country. This facility comes free of cost for the policyholders. The followings are the mentions of the types of complaints that fall within the purview of the Ombudsman.
- Any partial or total repudiation of claims by an insurer.
- Any dispute in regard to premiums paid is payable in terms of the policy.
- Any dispute on the legal construction of the policies in so far as such disputes related to the claims.
- Delay in the settlement of the claims
- Non-issue of any insurance document to customers after receipt of premium.