Describe procedures of settlement of claims of insurance of your choice in your country
Insurance
Is a contract, represented by a
policy, in which an individual or entity receives financial protection or
reimbursement against losses from an insurance company. The company pools
clients' risks to make payments more affordable for the insured.
Life insurance
Life insurance may be defined as the
contract in writing whereby the insurer, inconsideration for a small amount of
premium, undertakes to pay a certain amount of money or annuity, either on the
death of the person or on the expiry of the specified time period. The premium
may be paid annually, quarterly or monthly but it must be paid on a regular
basis.
Life insurance is not a contract of
indemnity because sum assured is always payable and only the time period of
payment is uncertain
Types of life insurance policies
1)
Whole life policy
This
policy continues throughout the life time of the insured. The premium is
payable as long as the insure is alive. The amount of the policy is payable to
his nominees who are then called “beneficiaries". We have has many cases
of the son killing his father or his mother just to get the amount. The amount
of premium is generally less in this policy. It is mainly taken to support the
family members after one's death.
2)
Endowment policy
This
policy is taken for a specified time period. The sum insured is payable on the
expiry of the time period. This is the most famous from of life insurance which
is mainly taken to manage one's old age so that he does not have to depend on
his family members.
3)
Joint life policy
It
is a policy taken up jointly on the lives of two or more persons. On the death
of any one, the sum insured is payable to the surviving holders of the policy.
This type of policy may be obtained by husband and wife, partners of a firm
etc.
4)
Group insurance policy
An
employer may take up one policy on the lives of all his employees instead of
taking separately. The policy specifies the amount for each employee. The sum
assured is payable to the family members of the employee. If the employee
survives, he gets the money for his retired life.
Procedure for Settlement of Claim
1) Notice of death:
The
beneficiary of the policy must send a notice of death of the insured to the
company. The death date, the cause of death and policy number must be
mentioned.
2) Death certificate:
On
receiving the notice of death, the insurance company will send a claim form.
The claimant should fill the form carefully and then submit it. The following
documents should be attached to the form;
1.
Death
certificate.
2.
Police
report in case of unnatural death
3.
Original
policy
4.
Identity
certificate
3) Proof of life:
In case the policy is not nominated in the
name of the claimant, he will have to obtain a certificate of title of property
of the deceased from a court of law.
4)
Payment:
When all the legal formalities are
completed, the insurance company will send a discharge form to the claimant.
The from should be duly filled in, duly stamped and returned to the insurance
company. After the scrutiny of the discharge form, the insurance company will
send the cheque to the claimant through registered post sent to the insured
through registered post
5) Claim
Rejection, what to do next
If there is rejection
of a genuine claim by an Insurance Company, the claimant can go for appeal.
They can approach the Claim Review Committee of the Insurance Company. If the
complaint is not attended properly, the claimant can approach IRDA, the
insurance regulator. Still, if the issue
Other
settlement claims for death insurance as followed.
1.
Policy document.
2.
Proof of Age if age is not already
admitted.
3.
Certificate of death from Municipal
Broad Office.
4.
Legal evidence of the title if the
policy is not nominated or assigned.
5.
Form of discharge duly signed and
witnessed.
6.
If the claim has occurred within 3 years
of Policy commencement or from revival date following additional requirements
are there.
7.
Certificate from last Medical Attendant
or Hospital.
8.
Two witnesses who had attended last
rites.
9.
Last five years leave record if the
deceased was in service.
10. If there is unnatural death; such as accidental death; or by suicide – Post Mortem Report, Panchnama & Final Report of Policy is also required.
REFERENCE
2.
Types of Life
Insurance Claims – List and Settlement - MoneyChai
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