Ch. 13: How to Claim ULIP Policy: Steps & Documents Required

An insurance policy is primarily intended to serve you in times of crisis. However, the entire claim process can be quite wearisome - right from filing the claim to getting the claim amount in hand. You don't want any unnecessary stress, especially when filing a death claim. Therefore, you need to ensure your family is aware of the entire claim process - so they won't encounter any difficulties in your absence.

In the previous article, we saw what happens when you discontinue your ULIP. This article describes all the steps needed to ensure a hassle-free claims experience for a Unit-Linked Insurance Plan (ULIP).

Claims Process of a ULIPs

When you or your nominee file a claim, you shall receive the insurance cover in the following ways:

• Death benefit
  In case you pass away, your nominee shall receive either -

the Sum Assured or the Fund Value, whichever is higher

OR

The Sum Assured plus the Fund Value

• Maturity Benefit If you survive the policy term, you shall receive the Fund Value as calculated on the policy maturity date.

Fund Value

Fund Value is the value of the total units you hold with the insurance company.

You can calculate the total fund value by multiplying units with the NAV of the fund on the particular day.

Fund Value = Total Owned Units x Current Net Asset Value

Sum Assured

The sum assured in a ULIP death benefit is usually 10 times the premium you pay annually. It can also be a different multiple, say 15 times or 20 times the premium - depending on the product.

Hence, a ULIP can be redeemed in the following circumstances -

• In case of death
• In case you survive the policy term

Let’s explore how the claims are processed in each of these scenarios -

In case you pass away

Your nominee shall be eligible to receive the death benefit.

Step 1: Inform the insurer

It is necessary to notify the insurance company of the death so they can proceed with the necessary steps.

Here are the ways to contact the insurance company:

• Call via toll-free number
• Send an email/SMS to the insurer
• Visit the insurer's website
• Visit the branch of the insurance company.

Step 2: Documents submission:

In order to file a claim with the insurance company, you must submit the claim form and other relevant documents to the insurer

Important points -

• Make sure you get the system-generated acknowledgement of receipt from the insurer when submitting your documents.
• Keep a hardcopy of the full set of documents handy for future reference. You can also hold the softcopy of these documents on a device.
• Once you submit the necessary documents, the insurance company will examine them and begin the claim settlement process.

Step 3: Additional documents

Sometimes, insurers will ask for additional documents. They may inform you regarding the essentials via your email or communication address. You will be required to submit the requested documents within 90 days of the date of request.

The following documents must be kept ready when filing a death claim:

Mandatory documents:

• Claimant Statement Form
• Death Certificate (Self Attested Copy)
• KYC document of the beneficiary (Self Attested Copy)
• Bank details of the beneficiary

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)

In case you survive the policy term

You shall be eligible to receive the maturity benefit.

Step 1: Get in touch with the insurance company:
You need to submit the appropriate documents at the insurer's branch office to make a claim request.

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

• Duly filled claim form or policy payout form in the prescribed format.
• Original Policy Document.

Step 3: Authentication:
Once you have submitted the documents, an assessor will check them and verify whether the claim request is genuine or not.

Step 4: Payment of Claim/Maturity Amount:
If your claim request is determined to be genuine, your insurance company will generally pay the maturity claim amount the next day. The amount is calculated as per maturity day’s NAV, when the market closes by 3:00 PM. The claim amount shall be credited to the registered bank account.

Note - If it’s a non-working day, the claim amount will be settled and paid as per the next working day’s NAV.

Sometimes your claim may get rejected, and the due reason shall be communicated to you via calls, SMS, email etc.

Things to remember -

• The process of a claim and the document requirements may vary from Insurer to Insurer. Before signing the policy, ensure that you clearly discuss all the nitty-gritty details with your insurer.

• To avoid any sort of problems down the road, make sure you talk to the insurer regarding the entire policy process and take note of the documents needed beforehand.

• Once you are aware of the set of documents required, make sure you bring all these documents and store them in a safe place to avoid misplacement.

• On the other hand, you can also secure the records digitally by creating a Digilocker account or opening an e-insurance account. Also, make sure you share the account details with your nominee and family members. This will ensure they won’t experience any difficulties in your absence.

Summing up!

A thorough understanding of how the claim process works will ensure a seamless claim process for you or your nominee. Ensure you inquire about the documents you shall require at times of claim and other processes beforehand to avoid hiccups in the future. Read the next article to go through and understand the entire working of a ULIP!