Insurance Claims Management Surrender & Maturity Claims

V.JAYALAKSHMI

Life Insurance Claims Benefit Payments

Classification of Benefit payments

Surrender benefits Maturity benefits Death benefits Annuity payments Supplementary benefit payments: Accident benefit Critical benefit

Surrender Claims
Policy cancelled before happening of the event No proof of the event required Proof of title and right to receive benefits necessary If policy is assigned, assignee to submit assignment deed copy

Regulatory provisions
Section 113 (1) a policy shall acquire a guaranteed surrender value if all the premiums are paid for a period of at least 3 consecutive years Section 113 (2) a policy which has acquired a surrender value shall not lapse by reason of nonpayment of further premiums, but shall be kept alive to the extent of the already paid SI

Regulatory provisions.
Section 113 (3) a policy kept alive to the extent of the already paid SI u/s 113(2) is not entitled to any profits declared after conversion into paid policy Section 113 (4) the minimum paid-up value of a policy reserve should be RS. 100 Documents same as maturity / death claim

Maturity Claims
Claim amount payable on surviving to the specified period mentioned in the policy Maturity benefit can be either lump-sum amount annuity payments for a certain period

Policy holder given option before 6 months of maturity date

Maturity claims.simple
No proof of happening required Proof of title no problem unless assigned Insurers need not wait for receipt of request Expeditious claim settlement positive image Payment paid on stipulated date Agents can motivate payments into premium ( if partly paid)

Maturity claim documentation

Documentary proof of age if not admitted previously Original policy deed Duplicate deed if issued in lieu along with deed of assignment if any A form of discharge for the maturity proceeds received Indemnity bond on non-judicial stamp paper if policy is misplaced Surety of sound financial standing

Where the Assured is Lunatic

A certificate from Court of Law under the Indian Lunacy Act Appointed Guardian under the Act to take care of the properties called for On recovery from the mental disorder - a certificate from the Mental hospital - certificate from Civil Surgeon Proof of capabilities of managing his own affairs

Where Assured adjudged as Insolvent

The benefits of maturity becomes payable to the Official Assignee On receipt of a Notice from Official Assignee Copy of the Courts order declaring the assured to be Insolvent Copy of the Courts vesting order appointing the Official Assignee as the Assignee of the Insolvents estate

Insolvency of Assured
Official Assignee to be informed about date of Maturity On maturity date Official Assignee to enquire whether assured is discharged If not, to receive amount as assignee of the policyholder Purchaser of the policy if policy is sold in a Court Auction with a copy of Certificate of sale granted by Court

NRI Policyholder
Payments governed by Foreign Exchange Control Regulations Claims to be settled in Foreign currency if premiums received in Foreign currency Claims to be settled in Indian Rupees when premium received as Indian Rupees

Polices financed through HUF Funds

Policy property of HUF Policy monies payable only to Karta of HUF valid discharge Karta Manager of HUF No nomination or assignment can be made by the Life Assured Only Karta can execute a valid assignment If assignment is a Legal Necessity / for the benefit of the HUF

Questions
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