We are already in the third year of the new coronavirus epidemic. And we experienced the worst of what Covid-19 may do during the second wave last year, in 2021. Thousands of people were killed, and many more were financially harmed. Many people had to rely on life insurance to assist them get through these extraordinary circumstances.
According to the Insurance Regulatory and Development Authority of India’s (IRDAI) annual report for 2020-21, life insurers paid 10.84 lakh claims out of a total of 11.01 lakh claims in 2020-21, for a total benefit value of Rs. 26,422 crore in the individual life insurance industry. The total number of claims repudiated was 9,527 for a total of Rs 865 crore, with 3,032 claims denied for a total of Rs 60 crore. At the conclusion of the year, there were 3,055 claims outstanding, totaling Rs 623 crore.
“Insurers were ordered to handle COVID-19 death claims swiftly, by designing a speedier claim settlement method to meet the growing scenario,” according to the annual report.
According to the IRDAI’s annual report for 2019-20, in the instance of individual life insurance business, life insurance firms paid 8.46 lakh claims on individual policies in the year 2019-20, for a total payment of Rs 18,042 crore. There were 8,927 claims repudiated for a total of Rs 555 crore, and 2,262 claims denied for a total of Rs 20 crore.
What is the procedure for filing a life insurance death claim?
When a person with a life insurance policy dies, a claim notification should be made to the insurance company as soon as feasible, according to the IRDAI’s consumer education website. This may be done by the policy’s assignee or nominee. Any close family or the agent in charge of the insurance may do the same.
The claim notification should include details such as the date, location, and cause of death. The insurance agent’s responsibility is to assist the life assured’s family/assignee in dealing with the insurance company to complete the requirements for a claim.
The following papers will be requested by the life insurance company:
Claim form completed (provided by the insurance company)
- Death certificate
- Policy manual
- Assignment/re-assignment deeds, if any
- If the insurance is not assigned or nominated, legal documentation of title is required.
- Execution and witnessing of a discharge form
Other papers, such as a medical attendant’s certificate, a hospital certificate, an employer’s certificate, a police inquest report, a post mortem report, and so on, may be requested as needed.
If the insurer is satisfied that the claim is legitimate, it will notify the claimant and pay the death claim amount.