First make a thorough search (within your residence, among your investment papers, at your office) before concluding that you have lost the policy bond. It could have been even pledged with LIC/any other financial institution for availing a loan by you. LIC retains the policy bond when you go in for a loan against the policy. Make sure that the document you are searching is not one that has already been assigned to LIC, or to another financial institution. In case you are sure that the policy bond is untraceable due to unknown causes, there is a simple procedure to comply with while applying for the duplicate policy at the branch that services your policy
Why we need duplicate policy bond/document?
Though the life policy is only an evidence to contract, the policy being a valuable document, should be stored in a safe place till its maturity. In case the policy gets lost, destroyed or mutilated, then the policyholder must immediately procure a duplicate policy. The need to have a duplicate policy also arises on the following occasions –
1- At the time of receiving Maturity Amount or Death claim
2- To obtain Surrender Value/Loan
3- To obtain a Duplicate Policy in other cases
What happens if the policy document is lost?
The loss or destruction of a policy document does not in any way absolve the Life Insurance Corporation of the liability of payment of policy monies when the claim arises. If the policy is lost or destroyed, claim or sum assured will be paid to the claimant or policyholder after he/she furnishes an indemnity bond jointly with one surety. Similarly, a policy can be surrendered even if the original policy document is lost. However, for the purpose of loan or survival benefit one has to obtain a duplicate policy.
What should be done in the case of a lost policy?
The branch or divisional office of LIC, where the policy is serviced, should be immediately intimated. A duplicate policy will then be issued. It may, however, be noted that the loss of policy document does not extinguish the right of the policyholder in the policy.
What is the procedure to obtain duplicate Policy?
A. Duplicate Policy for Maturity Amount or Death claim
The policyholder will have to submit following documents –
1- Loss of Policy questionnaire (Form No. 311),
2- Indemnity Letter in Form No. 3815 (unstamped) if the claim amount does not exceed Rs. 5,000 and a no Surety, must be submitted,
3- Discharge Form,
4- Form of Declaration of ‘No Assignment’,
5- A declaration by Surety having sound financial status, acceptable to LIC in appropriate Form, if the claim amount exceeds Rs. 5,000.
6- Submission of Photo ID
7- Submission of Proof of Residence of Life Assured
B. Duplicate Policy in other cases
The policyholder will have to submit following documents –
1- If the Policy is Assigned or Mortgaged, the duplicate policy shall bear the latest Assignment that is in force as on the date of issue,
2- Where the Policy is due for maturity or survival benefit within 3 years and if the sum assured is more than Rs.25,000, an advertisement in a Local Daily newspaper having wide circulation is required,
3- Indemnity Bond in Form No. 3756 duly stamped and executed by the policy holder on a stamp paper of appropriate value is to be submitted,
4- If sum assured exceeds Rs. 50,000, declaration by a Surety having sound financial status acceptable to LIC in Form No. 3807 is required ,
5- Duplicate Policy charges of Rs. 5,
6- Stamp Duty charges at prevailing rates.
If the policy bond is partially destroyed due to natural causes like, fire, flood, etc, the remaining portion may be returned as evidence of loss of policy to LIC, while applying for a duplicate policy.
Valid Photo Identity: Passport, PAN card, Voters ID, Driving license, Identity card issued by Govt
Valid Residential Proof: Telephone bill, Bank statement, Electricity bill, Ration card, Lease along with rent receipt
Source – licindia.in