Where a life insurance policy is maturing, the LIC India will usually sends advance intimation (two to three months in advance of the date of maturity) to the policyholder along with a blank discharge form/voucher for filling various details in it. The policyholder has to sign the discharge form/voucher, have his signature witnessed. And then send it back to the LIC India along with the original policy bond to enable it to make the payment.
The LIC India’s maturity claim discharge form/voucher (filled and the policy holder needed to sign across the revenue stamp of Rs 1/- pasted on the form) has to be returned to the LIC Branch along with:
1- Original LIC Policy Document
2- ID proof
3- Age Proof (if not submitted earlier)
4- Assignment / Reassignment (if any)
5- Cancelled Cheque or Copy of Policyholder’s Bank Passbook
6- NEFT Mandate Form (so that the maturity proceeds can directly be transferred into the policyholder’s account)
Settlement procedure for maturity claim is simple after receipt of completed and stamped discharge form. The claim amount will be paid into the policyholder’s account.
If the policyholder didn’t receive the letter and discharge form/voucher. Then the policyholder needs to visit the home branch along with the above documents.
Please note, if you send the above mentioned document by post/courier to the branch even then the maturity proceeds will be credited to your account. But there is a risk that you might loose the Original LIC Policy Document in post/courier transit so submitting personally is recommended.
Things to Take Care:
1- Endowment Plans: In LIC India’s Endowment Plans the maturity amount is payable at the end of the policy period. In these cases, the LIC Branch intimate the policyholder by sending a letter with discharge form/voucher informing the date on which the policy amount is payable. Discharged form duly filled is requested in return from the policyholder along with the all policy document. After receiving documents postdated cheque is sent by post so as to reach the policyholder before the due date.
2- Money Back Plans: In LIC India’s Money Back Policies give periodical amount to the policyholders. In these cases, where amount payable is less than up to Rs.60,000/-, cheques are released without calling for the Discharge Receipt or Policy Document. However, in case of higher amounts discharge receipt or policy document is mandatory.
3- Please note that if the policy has been assigned in favour of any other person or entity – like a housing loan company – the claim amount will be paid only to the assignee who will give the discharge.
4- Please note always keep a photocopy of all the above documents in your own record.