Ch. 8: How to claim Pension Accumulation Plans: Steps and Document Required

The most crucial aspect of an insurance plan is the claims process.

Imagine you purchase a Pension Accumulation Plan when you are 35. The plan helps you invest your savings in a systematic manner, and accumulate a retirement fund. Now what happens when you or your nominee need to make a claim?

It’s important to be aware of the entire claims process, even before you buy a policy, so you aren’t caught in a last minute flurry. Not to mention the fact that the entire process can be quite a task, especially for your nominee if you aren’t around!

We’ve compiled the steps you need to follow and documents you need to submit while filing a claim - to make your job easier! Make sure you and your nominee go through this in detail.

Let’s have a look.

Pension Accumulation Plans can be claimed in two scenarios -

1. When you, the policyholder, pass away
2. When you, the policyholder, survive the policy term

Let’s take you through both the processes, step by step.

1. In case of death of the policyholder

If you meet with an unfortunate demise within the policy tenure, your nominee will receive the Death Benefit. This is different for unit-linked and non-linked plans.

Unit-linked plans Your nominee, if you pass away during the policy term, will either receive the accumulated Fund Value or 105% of the total premiums paid - whichever is higher.

Non-linked plans Your nominee will receive the death benefit if you pass away during the policy term. Depending on what is higher, they will either get the total premiums you have paid along with any accrued bonuses, or 105% of the total premiums you have paid.

To redeem the plan, they will have to go through the following steps -

Step 1: Notification Informing the insurance company about the claim is the very first step in any claim process.

This can be done by -

• Calling the insurance company on their toll-free number.
• Sending an email/SMS to the insurer.
• Visiting the insurer’s website.
• Visiting the branch of the insurance company.

Step 2: Submission of Documents Submit the claim form, and all the necessary documents and details related to the claim, to the insurance company.

Points to remember:

• When you are submitting documents, always ensure you take a system generated acknowledgement from the insurer.
• Always keep a scanned copy of the entire document set with you - because you never know when you might need to present it.

As soon as you submit all the mandatory claim documents, the insurance company will proceed with the claim intimation request.

Step 3: Requesting additional documents Any other relevant information or document may be requested by the insurance company, which needs to be submitted within 90 days of the date of request.

A list of the documents you will need to compile to file a death claim -

Mandatory requirements:

• Claimant Statement Form
• Death Certificate (Self-Attested Copy)
• Original Policy Document
• Relationship proof and KYC document of the beneficiary (Self Attested Copy)
• Bank details of the beneficiary
• If age is not admitted under the policy, the proof of age of the annuitant has to be submitted to the insurance company

Additional requirements for claims within 3 years:

• Original Policy Document
• Medical Attendant’s Certificate (if any)
• Self-attested copies of Hospital or Treatment Records (if any)
• Employer’s Certificate (if applicable)

Additional requirements for accidental or unnatural death claims:

• FIR and Final Police Closure Report
• Driving Licence (in case of death while driving)
• Post Mortem Report
• Valid insurance document of the vehicle (in case of death due to a road traffic accident)
• Police Inquest Report / Inquest Panchnama
• News Paper Cutting (if any)

2. In case the policyholder survives the term

You receive the Maturity Benefit. This is different for unit-linked and non-linked plans.

Unit-linked plans You can either get the higher of the accumulated Fund Value or a percentage of the total premiums you have paid. This percentage can range between 101% to 140%.

Non-linked plans Depending on what is higher, you will either get - the total premiums you have paid along with any accrued bonuses, or a percentage of the total premiums you have paid. This can range between 101% to 140%.

To redeem this plan, you’ll have to go through the following steps -

Step 1: Notification You can simply visit the insurance company’s branch office and claim your policy, by submitting the required documents.

Step 2: Submission of Documents The insurer shall ask you to produce the following documents to initiate the claim settlement process:

• Original Policy Document
• Claimant Statement Form

Step 3: Authentication After you have submitted the documents, an assessor will be appointed to check them and verify if the claim request is genuine or not.

Step 4: Payment of Maturity Amount

• If your claim request gets approved, your insurer will generally pay the maturity claim amount the next day.
• In case of rejection, the insurer will inform the reason via calls, SMS, Email, etc.

Important points to be noted -

• The process of a claim and the documents required may vary across insurers. Hence, before signing the policy, make sure to ask the insurance company about the steps involved, and the list of documents you or your nominee will need to submit to get the claim amount.
• Once you are aware of the process and get the list of documents, bring them together and store them in a safe place - to avoid misplacement.
• As an added layer of protection, you can secure the records digitally by creating a Digilocker account or opening an e-insurance account. Make sure you share the account details with your nominee and family members. This will make the claim process easier and hassle-free for them, in your absence.

Retirement is supposed to be a time you actually lie back and relax. A Pension Accumulation Plan hears you and helps you grow your money when you’re earning - so that you can enjoy when you are not. This article aims to guide you through a smooth, hassle-free claim process. As you go into this next phase of your life, may you enjoy the very best life has to offer.