Types of Life Insurance Claims and Hassle-Free Claim Settlement Process

Life insurance is the right solution to protect one’s family as it helps family members get over the sudden demise of the insured by providing a lump sum payment to the policyholder.

But, this is not done automatically. To get the policy benefits, the policyholder needs to raise a claim, which could be confusing. For this reason, knowing the claim settlement process and types of insurance claims is essential.

Types of Claims in Life Insurance

A life insurance claim is a formal request which is made on the demise of the insured or when the policy reaches its maturity. Raising a claim is necessary to receive the policy benefits.

Once the policy period ends, the insured is entitled to survival benefits as per the policy terms, but in case the insured passes away when the policy is active, the beneficiary/nominee receives the sum insured (death benefits).

To know the complexities of claim settlement in life insurance, you need to know the three types of life insurance claims. Below is a detailed explanation of each of them:

Death Benefit Claim

As mentioned above, a death claim is made by the nominee to receive the policy benefits on the death of the insured. A nominee is the person chosen by the insured at the time of buying a life insurance policy or can be modified subsequently.

For more information, please read PNB MetLife's claim benefit here.

Since the insured himself adds the name of the nominee for receiving the sum insured, the nominee has the full right to raise a claim if the insured dies before the policy’s maturity.

There are some documents which need to be submitted by the nominee when raising a claim to ensure its approval. These usually include:

• Claim Form
• Copy of valid death certificate issued by local authority
• Doctor’s Certificate (From the family physician or treating doctor) preferably in the standardized PNB MetLife format
• Current address proof of the nominee
• Photo identity proof of the nominee
• Pan Card/Form 60 of the nominee
• Cancelled cheque / Copy of bank passbook

Additional documents may be required on a case-to-case basis.

Completing the formalities of the claim process is necessary, so it is suggested that you remain well-prepared and informed about it.

Maturity Benefit Claim

Before knowing about this claim, it is essential to know that you cannot raise this type of claim in life insurance if you have a term insurance plan.

A maturity benefit claim is provided to those who survive the policy term. The insurance company informs the insured about the approaching maturity date in advance so that the insured can gather and submit the documents, such as:

• Photo
• Original policy
• Properly filled policy discharge voucher- which states that the policy is going to be discontinued after the payment of maturity benefits.
• Account details.

The amount of this benefit is a total of the sum insured and the additional bonuses provided by the insurer throughout the policy tenure.

Add-Ons/Rider Claim

This claim is only available to those who have bought add-ons for their base life insurance plan. Here are some life insurance add-ons that you can opt for:

• Accidental death benefit rider
• Serious illness rider
• Accidental disability benefit, etc

These add-ons help the insured get extended financial coverage for unexpected events. Having these riders means you can raise a claim during your policy term if you have faced one of those events which are included in your rider plan.

What is the Claim Settlement Ratio in Life Insurance?

The claim settlement ratio is the number of claims settled by the insurance company to the number of claims raised.

The better the claim settlement ratio, the easier it will be to get your claim settled. Hence, when buying a life insurance policy, you should choose an insurance provider that has the highest claim settlement ratio in life insurance.

Conclusion

It does not matter if you are the policyholder or the nominee, understanding the different types of claims in life insurance, collecting all the required documents and then raising a claim is a crucial step towards a successful and hassle-free claim settlement.

The PNB MetLife claim settlement ratio is 99.20%. With an excellent claim settlement ratio and the facility of customising your life insurance policy with riders, PNB MetLife offers life insurance policies that suit the needs of every individual.