Death Claim settlement in Life Insurance is the most important aspect of the life insurance policy. There is always lot of confusion about “How death claims are settled in LIC OF INDIA? “.
There are two types of death claims, early & non early. If the death of insured person takes place within 3 yrs of starting the LIC POLICY, it will be called early death claim otherwise non early death claim and non early death claims are settled within 30 days from the date of receipt of all requirements.
There can be a scope of cheating/ fraud in early death claims so LIC deals strictly with these and there is little extra procedure needed to be follow in early death claim.
The common requirements in both type of death claims ( early or non early) are as follows:
- A letter of death intimation containing date, place, No of LIC policy & reason of death from the nominee to the branch manager of the concerned branch.
- Claimant’s Proof of relationship with the deceased.
- Policy bond or document.
- Discharge form or form no 3801 duly executed by the nominee.
- Death Certificate.
- Claim form No. 3783 A.
- NEFT form ( National Electronic Fund Transfer form) for transferring the claim amount in the account of nominee after settlement of the death claim.
If there is early death claim then besides above mentioned requirements, there are some more requirements, they are as:
- If the deceased was an Employee, Employer’s certificate on Form No. 3787( Revised )
- Treatment certificate issued by the Hospital/ Attending physician’s certificate on claim from B1 ( Form No. 3816) & B ( Form No. 3784 revised).
- Identity/ Burial certificate by a person who attended the funeral, except the relative of the deceased on Claim Form “C”. (Form No. 3785 revised).
Note: For Double accident Benefit, further certain procedures are need to be followed.
- The claim must be lodged with LIC OF INDIA within 120days from the date of death.
- Attested copy of F.I.R., Post Mortem report duly attested by the competent court or civil police is required.
- Spot panchnama & eye witness statement.Claim will be admitted after acceptance and verification of the above mentioned documents by LIC & clearance by the concerned SDM.
In case of policyholder’s unnatural death caused by accident, suicide etc. the LIC may require some additional details besides above mentioned documents depending on the nature of the case.
- In case the death claim arises within 2 yrs of taking the policy, LIC will admit claims only after the necessary investigation conducted by the LIC Authority. Due to the procedure, the settlement of claim may take little extra time.
- In the absence of nominations under the policy, the list of all the successors should be submitted on Form no. 3806 and on submission of Declaration Form a claim up to Rs 250000 can be settled without succession certificate.
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