LIC Maturity Claim Process

Mostly person before taking life insurance they think that how to claim maturity benefits from life insurance policies? Or What are the maturity claim procedure? How in my absence my dependents or spouse or nominee can take maturity claim?

Every insured person is entitled to claim the maturity benefits only when the policy is in force and all premiums have been duly paid. In life insurance policy with maturity benefits, the insured person will be entitled to claim maturity benefits if they have fulfill the term of the policy. A maturity claim is one of the simplest claim procedures with minimal paperwork require.

Normally the insurance company sends a Policy Discharge form about ninety days (3 month) before the maturity date of the insurance policy along with maturity intimation at insured persons address mentioned in policy. All instructions regarding the documents & procedures are advised their.

First of all, insured person should visit nearest LIC branch and understand the procedures.  Following list of documents require in Maturity claim process:

* Original Policy Bond
* Copy of Identity Proof
* Copy of Address Proof
* Bank Mandate Form with bank details
* A Cancelled Cheque leaf

Arrange all documents require to take maturity claim. The Policy Discharge Form (LIC Maturity Form No.3825) must be duly filed by the policyholder. The Maturity form needs to be signed by Policy holder along with two witness. 
The duly completed form with required documents must reach the insurance company at least one week before the maturity date of the policy for a seamless maturity claim settlement.

Once the documents are reach to the insurance company, they do verification and after that insurance company will process the maturity claim and make the payment to the policyholder. The maturity amount will be credited directly to the bank accounts of the policy holder after the policy maturity date.

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How to Avoid Insurance Claim Rejection ?

Life insurance is not just a tax saving tool, it is a serious financial product which if used correctly can be a bless for your family and dependents. We people take life insurance to safe our future from any mishappen.      

But it will be only if it get paid to our nominee on time without hassle. There are so many clauses, conditions and exceptions in insurance policies. Failure to meet any of these conditions would result in no insurance benefit being pay out. Most often, insurers rely on legal loopholes and clauses in their policy documents to avoid making payments of sums assured, but surprisingly a large number of times, the fault and blame belongs to the customers themselves.

Here are some points to ensure yourself as a customer that you always get paid.

1. Don't Conceal Information:- While taking a life insurance policy any information pertaining to your health/habits which can put an impact should disclose. Any pre-existing disease or condition or smoking/drinking habits or anything that can be linked as being as cause to your hospitalization or death will be investigated and if you have not disclosed to the company about it then sum assured & other benefits will not be given to you or your dependents/nominee. Remember your premiums are decided on this information. If there is nothing that can be held against you then the insurer will have to honor the insurance claim.

2. Accept Medical Examination: After certain age, life insurer ask for sponsored medical examination and test to get better understanding of your medical condition. These test may also help you detect diseases early, and treat them accordingly. These test will decide acceptance/rejection of policy or clear your doubts about any future rejection of claims due to concealing health information. 

3. Pay Insurance Premium On-Time: Remember Insurance company only settle claims on Active Insurance Policies. But there are number of people who do not understand that delaying premium payments result in lapsed policies. Once your policy get lapse, you are no longer covered and all your premiums paid that far will be rendered useless. Your nominee may lost their legal validity to get sum assured on death from the company. In some cases delaying your insurance premium payments lead to Late Payment Surcharge for re-reinstatement of the policy.

4. Nominee Information: Nominee is the person who will receive any and all benefits that come out of your insurance policy in your absence. Nominee should be generally that person whose livelihoods are directly depends on you being alive and well. So nominate some one is more important. If you are single than nominate your parents, if married then spouse or children. Whatever your present relationship status is, always keep nominee name update so that some benefits will to some dependents of yours. If there is no nominee then death benefits may be freeze/rejected.

5. Scrutinize the Policy Documents: Merely telling the insurance agent everything about your medical history will not qualify him to understand and explain all on the form about your medical history. Insurers decide your premium payment amount, overall coverage, and even some exclusions based on whats' filled out in your forms. No one knows better that you, and you need to make sure the insurance provider knows too. You need to take the time out of your busy schedule and check the form that all details are filled in order and truthfully. Check Clauses such as the exception list that indemnifies the insurer from any kind of liability towards you exist all over your policy documents. 

Keep  yourself informed about all developments with your insurer. Keep yourself informed about the details in your policy documents. Stay well informed about the conditions under which you will be eligible for a claim. 

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Register and Get Facility with LIC eService Portal

LIC has comes up with some new features with Lic’s e-service. You can register your policies at LIC portal with some simple steps and save lots of time.

Lic’s e-service is an initiative is to provide you with on demand service within a few clicks! You can now have many of the functionalities that were available only at branch office, Now it will be online at your fingertips. To avail this facility you have to get register as customer on LIC portal.

How to get Register on LIC Portal:

First you have to visit www.licindia.in  , click on the tab “New User “ , select your own USER ID & Password and provide all the other necessary information . Now you are a registered customer portal user.

LIC’s e-services portal for customers has come up with a lot of new facilities. Now if you register you can avail the following benefits: 

1.  Online Payment Facilities:

This facility provided to pay renewal premium dues, payment, repayment and loan interest due of loan through net banking, debit card, credit card, BHIM, UPI

2.   POLICY Schedule:

First page of policy bond which constitutes policy schedule will be displayed.

3.   Policy Status :

Basic detail of policy will be displayed such as plan, term, sum assured, date of commencement, first unpaid premium etc.

4.  Bonus Status :

     Total bonus accumulated under the policy will be displayed.

5.  Loan Status :

Present loan position will be displayed such as total loan outstanding under the policy, due up to which loan interest paid etc.

6.  Claim Status:

This option will display date of survival benefit (if any) or maturity benefit due under the policy during the policy term.

7.  Revival Quotation:

Revival quotation will be provided in case of lapse  policies.

8.  Premium Due Calendar:

Detail of premium due during the year (month wise) will be displayed.

9.  Premium Paid Certificate:

Individual policy – it provides history of premium paid under a single policy during the financial year.

Consolidated – it provides history of premium paid under all the registered own life policies of the user.

10. Claim History:

 This option will provide details of any claim paid under the policy with NEFT/  Cheque details, date of payment and amount of payment.

11.  Policy bond/proposal form image;

 Scanned image of the policy bond as well as proposal form will be displayed for enrolled  policies.

12.  Grievance registration:

Facility to register a complaint /grievance with insurer.

In future the benefits will further be enhanced. If you face any problem in registering, you may contact us/your Agent or to your nearest LIC Branch.

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How To Make Claim in Insurance ?

What is Claim in Insurance?

Let’s talk about claim. Claim is the demand that the insurer (i.e. LIC of India) should redeem the promise made in the contract. Then the insurer settle the claim after satisfying himself that all the conditions and requirements for settlement of claim have been complied with.

Types of claims:-

An insured person can make claim according to condition complied to contract between Insurer & Policyholder. Claim can be made against Maturity; Death or by Surrendering a policy.

In Money Back Policy, LIC or other Insurance company also pays Survival Benefit Payment before the date of maturity.

How to Make Claims and what are the documents required for?

(A)Maturity Claims:-

When Life Insurance Policy is maturing, the insurance company will usually send intimation prior to due date at least two to three months in advance of the date of maturity with maturity amount payable details.

Policy holder should contact his servicing branch to know about claim procedures & sets of documents required. The Insurance Company asks for following documents:

(          1)Maturity Claim Form No. 3825

(          2)Original Policy Bond

(          3)Discharge Voucher with witness sign

(          4)NEFT Details with cancelled Cheques

(B)Death Claims :-

When a person with life insurance policy dies, claim intimation should be sent to the insurance company as early as possible. The Assignee or the Nominee under the policy can do this with the help of his agent or relative.

The claim intimation should contain information like Date, Place and Cause of Death. The Insurance Agent should help the Insured Person Family or Assignee to deal with the Insurance Company. The Insurance company will respond and ask for the following document :

(       1)Maturity Claim Form No. 3825

(       2)Certificate of Death

(       3)Original Policy Bond

(       4)Discharge Voucher with witness signature

(       5)NEFT Details with cancelled Cheques

*If the policy has been assigned in favour of any other person or entity like any Loan provider company – the claim amount will be paid to the assignee who will give discharge.

(C) Surrender of Policy : - Please visit post How to Surrender LIC Policy?

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How to Surrender an LIC Policy ??

Why we are thinking to surrender the policy while we take it to secure future from financial Problem or Unexpected other risk. Some time we take to save tax U/s.80C also.

REASON TO SURRENDER : 

There may be so many reasons to get it surrender. Might be you are not satisfy with the term & conditions or having some financial problem.

But before going to surrender your policy bond,  you need to check that does your policy has surrender values.

All endowment or money back insurance plans accrue a surrender value after certain (lock-in) period.

Generally insurance policies acquire surrender value completions of three years of your policy. This may varies than the amount of premium paid.

Remember Term Insurance / Health Insurance policies are pure protection plans and do not accrue any surrender value.

Once you have decided to surrender your policy, here is how you go.

REQUIRED DOCUMENTS : -

I.   Original Policy Bond / Certificate

II.  Photocopy of last premium payment receipts

III. Photocopy of latest unit balance (in-case of market linked plan)

IV.  Application for surrender value or LIC SurrenderRequest Letter

V.   LIC Form No. 3510/5074

VI.  LIC NEFT Mandate Form

VII. One Cancelled Cheques / Photocopy of Passbook (NEFT/RTGS Purposes)

All forms are self explanatory, fill all the forms accordingly and have some revenue stamps may require. With the above documents visit your home /servicing branch (office from where policy bond is issued). You can find it on your policy bond or on policy receipts. Only Policy holders can surrender the Policy Bond.

After verification all documents LIC officer will issue an Acknowledgement Receipts for the same. Surrendered process may take 15-20 days and the amount (Surrender Value) will be credited into your bank account directly.

POINTS TO REMEMBER : -

1. Surrender values are payable only after three full annual premium paid.

2. Surrender of policy is not recommended since the surrender value would always be proportionately low.

3. And When you decide again to go for an LIC Policy that would be with higher premium because of your    

    higher age .

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