Nobody likes to think about it. Losing a loved one is already painful. And then, in the middle of grief, comes paperwork. That’s where term insurance shows its real worth. It’s not just a policy. It’s a financial lifeline for your family. But that lifeline only works if the claim is filed right. This guide will walk you through exactly how to file a term insurance claim in India, clearly, calmly, and without jargon.
TL;DR
- Inform the insurer immediately and get a claim reference number
- Gather key documents: death certificate, original policy, nominee ID, bank proof, claim form
- Accidental or sudden deaths require FIR and post-mortem reports
- Submit documents online or at branch and keep acknowledgements
- Claims are usually settled within 30 days if paperwork is complete
- Most rejections happen due to lapsed policies, non-disclosure, or missing medico-legal documents
- If denied, escalate to insurer grievance, then IRDAI, then Ombudsman if needed
The Importance of Correctly Filing Your Term Insurance Claims
India has a huge protection gap. Only about 34% of insured Indians own a term life plan, even though awareness is much higher. Settlement ratios are strong (95–98% of claims get paid), but the remaining few that get delayed or denied often involve avoidable mistakes. The message is clear: file clean, file early, and your chances of a smooth payout are very high.
Step 1: Intimate the Claim Immediately
As soon as possible, inform the insurer about the death. Use their helpline, online portal, or even WhatsApp (many accept it now). Note the claim reference number. Don’t wait for all documents before intimation. Start the process right away.
Step 2: Collect and Organise Documents
The must-haves:
- Death certificate
- Original policy document
- Duly filled claim form
- Nominee’s ID, address proof, PAN/Form 60
- Bank account proof (cancelled cheque or passbook)
If the death was accidental, FIR and post-mortem report are mandatory. If hospitalised, collect discharge summaries and medical records.
Step 3: Submit and Track
Upload documents online (fastest) or visit a branch. Always save receipts, screenshots, and acknowledgement numbers. Keep copies of everything.
Step 4: Verification and Settlement
The insurer may seek more details. Cooperate, but ask for written communication. Once verified, the payout is credited to the nominee’s account. By IRDAI norms, claims should be settled within 30 days of document submission. If investigation is needed, insurers get up to 90 days, but must provide reasons in writing. Beyond that, they owe interest on the claim.
What Insurers Usually Check
Was the Policy Active?
Premiums must have been paid up to date. A lapsed policy is the number one reason families lose out.
Cause of Death
If death falls under policy exclusions (like suicide within one year of purchase), the claim may be rejected.
Any Misrepresentation at Purchase
Non-disclosure of smoking, illnesses, or hazardous jobs is often grounds for denial. Insurers investigate carefully, especially for early claims (within 3 years of purchase).
Common Mistakes To Avoid
Delay in Claim Intimation
Waiting weeks to file a claim gives insurers reasons to dig deeper. Always intimate first, documents can follow.
Letting the Policy Lapse
No premiums, no cover. Keep auto-debit active and watch reminders.
Not Updating Nominees
Life changes. Your nominee list should too. Outdated nominees lead to disputes and delays.
Non-Disclosure at Purchase
Hiding health or lifestyle facts can kill a claim. Full honesty at buy time is the best protection.
Skipping Medico-Legal Documents
Accidents or sudden deaths demand FIRs and post-mortems. Without them, insurers will not settle.
Sloppy Documentation
Mismatched bank details or unsigned forms may sound minor, but they cause unnecessary delays.
Real Stories: Lessons From The Ground
In 2023, a consumer forum ordered LIC to pay ₹21 lakh to a widow after rejecting her claim for “non-disclosure.” The court said the insurer hadn’t proved it.
In another case, a Delhi state commission told a private insurer to honour a claim despite alleging diabetes non-disclosure. The court ruled the insurer hadn’t shown it was material to the risk.
Both stories prove one thing: families shouldn’t give up. Escalation works.
If Things Go Wrong: Escalation Path
- Ask insurer for written rejection reasons
- Escalate to their Grievance Redressal Officer
- If no response in 30 days, go to IRDAI’s online grievance portal
- Still unresolved? File with the Insurance Ombudsman within one year of the insurer’s final response
- As last resort, approach a consumer court
FAQ: Quick Answers To Common Doubts
How long does a term insurance claim take in India?
Typically 30 days. If an investigation is needed, up to 90 days.
What if my insurer delays beyond 30 days?
They must pay interest on the claim amount as per IRDAI rules.
Can a claim be denied if premiums were missed?
Yes. If the policy had lapsed and wasn’t revived, the insurer is not liable.
My nominee details are outdated. What happens?
If no valid nominee, the payout goes to legal heirs. That means court paperwork and delays. Always update nomination.
What are the most common reasons for rejection?
Non-disclosure of health facts, lapsed policies, and missing medico-legal documents in accidental deaths.
Conclusion
Filing a claim is not just paperwork. It is unlocking the safety net your loved one built for you. Keep things simple: intimate early, submit clean paperwork, and avoid common mistakes. And remember, if trouble comes, escalate. The system is designed to protect families, not leave them stranded.
