Claim Amount

Definition:

Claim amount is the amount paid by the insurance company either on the maturity or upon the death of the life insured. In case of maturity, the claim is paid to the insured but in case of death claim, the amount is paid to the beneficiary or the nominee declared under the policy.

Description:

Under a policy contract, a claim is paid only when the insurance agreement is valid. A claim can be raised by the policyholder or beneficiary depending on the condition specified in the policy. After a claim is filed, the insurance company conducts a verification for the authenticity of the claim. Only if the loss has happened according to the terms and conditions mentioned in the policy, the claim will be payable. However, in case of maturity, the insurance company will pass the claim amount only if the insured files for it and all the conditions are fulfilled.

Example:

Naresh purchased a savings plan for a policy term of 15 years. The sum assured under the policy was Rs.8 lakhs. The premium payment term was 10 years. Naresh paid the premium without fail. He survived the complete policy term and received a total maturity claim amount of Rs.22 lakhs. At maturity, Naresh received sum assured plus loyalty additions and guaranteed returns from the investments. But if Naresh would have died in the 5th policy year, the nominee would have received a death claim of Rs.8 lakhs.

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ADV/6/22-23/420