Term Insurance Claim Process - Step-by-Step Guide for Nominees

Q: Is death during travel or accident covered?

Yes - unless caused by excluded events (e.g., illegal activity, intoxication).

Q: Can there be multiple nominees?

Yes, you can assign percentages (e.g., 50%-50% between spouse and parent).

A term plan only fulfills its true purpose when your family can claim the benefit easily - without stress or delays.

Understanding the term insurance claim process helps nominees act quickly and ensures the payout reaches them on time.

Most top insurers now process claims within 24 hours to 15 days, provided all documents are submitted correctly.

This guide explains every step - from registering a claim to receiving the payout - along with documents required, timelines, and tips to avoid rejection.

If you're a policyholder, share this with your nominee; if you're a nominee, follow this guide carefully during a claim.

Types Of Term Insurance Claims

Claim Type	Description	Who Files It
Death Claim	Filed when the life insured passes away during the policy term.	Nominee or legal heir
Maturity Claim (Return-of-Premium Plans)	Filed when the policyholder survives the term.	Policyholder
Rider Claim	Filed if any rider event occurs (Critical Illness, Disability, etc.).	Policyholder or nominee

Step By Step Term Insurance Claim Process

1. Inform The Insurer Immediately

Notify the insurer or PolicyBachat claim desk as soon as possible after the incident.
Provide basic details: policy number, insured's name, date of death/event, cause, and nominee contact info.
You'll receive a Claim Reference Number for tracking.

2. Collect Required Documents

Common documents include:

Original policy document
Death certificate (for death claims)
Nominee ID and address proof
Claim form (download from insurer website)
Bank account details for payout (cancelled cheque/passbook copy)
Medical records (if hospital death)
FIR and post-mortem report (for accidental death)

(Keep soft copies - most insurers now accept online uploads.)

3. Submit The Claim

Submit documents via:

Insurer's online claim portal, or
Visit the nearest branch office.
Use the PolicyBachat claim desk for guided submission.

You'll receive an acknowledgment receipt immediately.

4. Claim Review & Verification

Insurer verifies documents, cause of death, and policy status.
Natural death claims are usually approved within 3 - 7 working days.
Accidental or early claims (within 2 years of policy start) may require field verification.

5. Payout Processing

Once approved, payout is transferred to the nominee's bank account via NEFT/RTGS.
IRDAI mandate: settlement must happen within 30 days of receiving complete documents.

Documents Required - At A Glance

Document	Required For	Notes
Policy Document	All claims	Original or attested copy
Claim Form	All claims	Signed by nominee
Death Certificate	Death claim	Issued by local authority
Medical Records	Death/CI rider	Hospital reports/discharge summary
FIR/Post-Mortem	Accidental death	Mandatory for accident claims
ID Proof of Nominee	All claims	Aadhaar, PAN, or Passport
Bank Proof	All claims	Cancelled cheque/passbook copy

Claim Timeline

Claim Type	Avg. Settlement Time	% Of Claims Settled
Natural Death	5 - 10 days	92%
Accidental Death	10 - 20 days	88%
Rider Claims	7 - 15 days	90%
Return-of-Premium	3 - 5 days	95%

(Based on averages across top insurers.)

How To Track Claim Status

1Visit the insurer's official claim tracking portal.
2Enter Claim Reference Number and registered mobile/email.
3View real-time status updates - Received - Under Review - Approved - Settled.
4Or track via PolicyBachat Claim Dashboard if purchased through us.

Reasons For Claim Delay Or Rejection

1Incorrect or missing documents.
2Non-disclosure of medical or smoking history at policy issuance.
3Premium default (policy lapsed at time of death).
4Claim filed beyond reasonable delay without explanation.
5Suspicious claim circumstances (investigations apply).

Tips To Avoid Claim Issues

Always declare medical conditions honestly at purchase.
Keep nominee information updated.
Store soft and hard copies of the policy safely.
Tell your nominee where to find policy details.
Use PolicyBachat's Claim Assist Service for document verification before submission.

Claim Support - How PolicyBachat Helps

Dedicated claim assistance team for nominee support.
Pre-claim verification to ensure completeness.
Escalation help with insurers if delay occurs.
Transparent tracking until settlement confirmation.

Local Insights

Top insurers by claim ratio: HDFC Life (98%), ICICI Prudential (97%), Max Life (96%).
Avg. payout timeline: 12 days.
% of claims processed digitally: 82%.
Common claim support queries: missing documents, nominee mismatch, delayed submission.

Frequently Asked Questions

Who Can File A Term Insurance Claim?

The nominee mentioned in the policy, or the legal heir if no nominee is registered.

When Should A Claim Be Filed?

Ideally within 90 days of death or event, but insurers accept genuine delays if explained.

What Happens If Policyholder Dies Abroad?

Submit death certificate attested by Indian Embassy and translated copy if foreign language.

Is Death During Travel Or Accident Covered?

Yes - unless caused by excluded events like illegal activity or intoxication.

Can The Claim Be Filed Offline?

Yes, through the nearest branch, but online filing is faster.

Do Nominees Need To Pay Tax On Claim Amount?

No. All death benefits are tax-free under Section 10(10D).

What If There’s No Nominee?

Claim is paid to the legal heir after succession certificate verification.

Can There Be Multiple Nominees?

Yes, you can assign percentages like 50%-50% between spouse and parent.

What If The Insured Dies Within The First Year?

Claim is still valid; insurer may do an early-claim investigation as per IRDAI rules.

How Long Does A Claim Take To Settle?

Usually 7-15 working days after receiving all documents.

Can The Claim Be Rejected?

Yes, only for reasons like fraud, misrepresentation, or lapsed policy.

How Can I Speed Up Claim Approval?

Submit all documents at once, ensure correctness, and respond promptly to insurer queries.

Do Riders Have A Separate Claim Process?

Same process - file with rider-specific documents like CI medical reports.

Who Pays If Policy Was Under Joint Life?

Surviving partner continues; nominee claim applies after both pass if applicable.

What If I Lose My Policy Documents?

Insurer can issue duplicate copy based on ID and verification.

Customer Reviews

“Filed my father’s claim - got payout in 8 days.”

Anjali Sharma, Delhi

“PolicyBachat team helped us with all forms - very smooth process.”

Kiran Deshmukh, Pune

“Transparent tracking, no hidden delays.”

Ramesh Nair, Kochi

“Received settlement in 6 days for my spouse’s policy - quick service.”

Aarti Menon, Bengaluru

“Great explanation; shared this guide with my parents.”

Arvind Kapoor, Chandigarh

“Made the whole process stress-free for our family.”

Neha Joshi, Mumbai

Term Insurance Claim Process - Step-By-Step Guide For Nominees