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Life Insurance - How to claim death benefits out of unit-linked insurance plans

27 Oct 2014

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The unit-linked insurance plans ( Ulips) provide both death and maturity benefits to the policyholder. If he dies during the term of the policy, the beneficiary will receive one of these: sum assured, the higher of the fund value and sum assured, or sum assured and the value of the fund, depending on the terms of the policy. Such proceeds from the insurance company are tax-free.

Intimation

In the event of the death of the insured during the term of the policy, the nominee has to formally communicate the same to the insurance firm.

Claim form

A claim form has to be filled and submitted to the insurance company with the required documents for the claim to be formally registered. The form comprises particulars of the insured, details of death and basic information about the claimant.

Documents

The claimant must provide the original policy document, copies of death certificate, claimant’s photo ID and address proof, police FIR and post mortem report in case of accidental death, and certificate and medical records from the doctor/hospital in case of death due to illness.

Settlement

As per Irda regulations, the insurer can seek clarifications within 15 days and settle a claim within 30 days of receipt of all documents. In case any investigation is required, the proceedings should be completed within 180 days.

Points to note

1. Irda mandates that all claim payments to the policyholders be made only through electronic modes.

2. Insurance companies may set up their internal timelines, which are typically shorter than Irda timelines.

3. The insurance company can reject claims on two grounds—misrepresentation of facts and non-disclosure of key information that could impact the underwriter’s decision.

Source: The Economic Times BACK

To be added soon

Priyanshu B. Tanna

SEBI registered IFA

ARN119467 & EUIN E-183966

To be added soon

Bharat Tanna

SEBI registered IFA

ARN26176 & EUIN E-044509

To be added soon

Kundan B. Tanna

SEBI registered IFA

ARN294073 & EUIN E-553599

Risk factor

Risk Factors – Investments in Mutual Funds are subject to Market Risks. Read all scheme related documents carefully before investing. Mutual Fund Schemes do not assure or guarantee any returns. Past performances of any Mutual Fund Scheme may or may not be sustained in future. There is no guarantee that the investment objective of any suggested scheme shall be achieved. All existing and prospective investors are advised to check and evaluate the Exit loads and other cost structure (TER) applicable at the time of making the investment before finalizing on any investment decision for Mutual Funds schemes. We deal in Regular Plans only for Mutual Fund Schemes and earn a Trailing Commission on client investments. Disclosure For Commission earnings is made to clients at the time of investments. Option of Direct Plan for every Mutual Fund Scheme is available to investors offering advantage of lower expense ratio. We are not entitled to earn any commission on Direct plans. Hence we do not deal in Direct Plans.

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