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.