(a) whether the insurance companies while settling an insurance claim do not rely only on death certificate and ask for many other documents, and if so, the details thereof;
(b) whether the Government proposes to issue instructions to the insurance companies to process insurance claims on production of death certificate by his/her nominee/family members; and
(c) if so, the reaction of the Government thereto?
THE FINANCE MINISTER
(a) to (c) : A Statement is laid on the Table of the House.
(Statement on next Page)
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STATEMENT REFERRED TO IN REPLY TO PART (a) TO (c) OF LOK SABHA STARRED QUESTION NUMBER *349 FOR 9th DECEMBER, 2016 REGARDING SETTLEMENT OF INSURANCE CLAIMS TABLED BY DR. KIRIT SOMAIYA
(a) to (c) : Insurance Regulatory and Development Authority of India (IRDAI) has framed ‘Protection of Policyholders’ Interests Regulations, 2002’ incorporating the norms pertaining to settlement of claims by the insurers. The said Regulations stipulate the claims procedure in respect of a life insurance policy. To monitor the claims settlements by the insurers, IRDAI collects and reviews the claim settlement data from the insurers on quarterly basis.
IRDAI has informed that insurers require the policy document and a claim application in the format specified by the Insurer and death certificate of the life insured for settlement of normal death claims. In case of early death, where death takes place within a short period, normally two years from the commencement of the policy or death claims due to accidents, certain additional documents such as Post Mortem Report, First Information Report (FIR), Panchanama, Certificate of Cremation, Employer Certificate, Legal Heir certificate where there is no nomination or will, may be required for settling the claims, depending on circumstances of individual claim cases as well as on the insurer’s claim settlement policy.