How the claim amount will paid in Term Insurance Claim?

[Raj]

Few queries on Term Insurance Claim?
1- What will be the status of a term plan in case of suicide by the Insured after one year of policy?
2- Will the Sum Assured be given to the nominee?
3- Can the Insurer forfeit it in case of proved suicide?

4- Under what conditions Insurer can forfeit the Sum Assured?

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[PolicyWala]

These will be handled differently by different Insurers:

Bharti - AXA Life
If the Life Insured, whether medically sane or insane, commits suicide resulting in death directly or indirectly as a result of such suicide within one year of the Issue Date; or one year of the date of the latest reinstatement of the Policy, the company shall pay the nominee or beneficiary of the policyholder 80% of the premiums paid till the date of death, provided the policy is in force.

Aegon Religare Life
Suicide Claim Provision: If the Life Assured under the Policy, whether medically sane or insane, commits suicide, within a period of one year from the:
a) The Policy Date or
b) Date of reinstatement,

The nominee or beneficiary shall be entitled to 80% of the premiums paid, provided the policy is in force.

[PolicyWala]

Few queries on Term Insurance Claim?
1- What will be the status of a term plan in case of suicide by the Insured after one year of policy?

Claim will be paid by insurance company (also see above post).

2- Will the Sum Assured be given to the nominee?

Yes.

3- Can the Insurer forfeit it in case of proved suicide?

Not after one year of suicide or date of reinstatement of policy.

4- Under what conditions Insurer can forfeit the Sum Assured?

If insurer provide incorrect Information & Non Disclosure of material facts in proposal form. (See below for more info)

Incorrect Information & Non Disclosure
This Policy is issued based on the information/documents/replies furnished to the questions in the Proposal Form and in the report, if any, of the medical examiner and the declarations which have been made to the Company or its representatives and any other information provided by you or received on your behalf before the Policy Date. If any information/documents/replies/statements provided by you is found to be incomplete or incorrect or false, the Company notwithstanding with any other applicable provisions, reserves the right to vary/terminate the benefits which may be admissible and declare the policy null and void, if there has been non disclosure of any material fact or if the replies to any of the questions asked in the Proposal Form / report of the medical examiner are false or have been wrongly answered.

Section 45 of the Insurance Act, 1938 is reproduced hereunder for ready reference:
“No policy of life insurance effected before the commencement of this Act shall after the expiry of two years from the date of commencement of this Act and no policy of life insurance effected after the coming into force of this Act shall after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the Policyholder and that the Policyholder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose:

Provided that nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to do so, and no policy shall be deemed to be called in question merely because the terms of the policy are adjusted on subsequent proof that the age of the life insured was incorrectly stated in the proposal.”

[shipli88]

If the Life Assured under the Policy and commits suicide within a period of one year from the mentioned Policy Date or date of reinstatement, the nominee or beneficiary shall be entitled to 80% of the premiums paid which is provided the policy is in force as of the term and conditions of the policy.

[wasim]

Hello Raj,

Normally the claim amount is paid in cheque.
Suicide will be covered after 12 months of your policy inception

I hope this helps

Wasim

[Lucifer656]

I hope this helps

[Pankaj84]

I am 28 years old and I am new here can anyone suggest a good life insurance policy for me?

[Surekhag]

Depending on the nature of your claim, you may receive a check directly, or the insurance company may pay vendors on your behalf.

[strax1234]

I am also interested in this question. So I was driving a car, my wheel exploded and I turned over on it. The insurance company is still figuring out if the insurance will pay me?

[ankursh@123]

In a term insurance claim, the claim amount is paid to the nominee upon the insured’s death, provided all policy conditions are met. The nominee must submit necessary documents, including the death certificate, policy details, and proof of identity, to initiate the claim.
Answering Your Queries:

1. Suicide After One Year: As per IRDAI regulations, if the insured dies by suicide after one year of policy inception, the nominee is eligible for the sum assured or at least 80-100% of the premiums paid, depending on policy terms.
   
2. Sum Assured Payout: In case of natural or accidental death, the full sum assured is paid to the nominee. However, in suicide cases, insurers may have specific clauses.
   
3. Can Insurers Forfeit the Claim in Suicide Cases? If the suicide occurs within one year, insurers typically reject the claim but may return the premiums paid, excluding GST and other charges.
   
4. When Can an Insurer Forfeit the Sum Assured? Claims can be denied if fraud, misrepresentation, non-disclosure of facts, or policy lapse due to non-payment is proven.