Nominee intimation + documents + 30-day settlement (IRDAI). Section 45 (incontestable after 3 years). Full disclosure prevents rejection. Choose 95%+ CSR insurer.
TERM CLAIM PROCESS: (1) NOMINEE INTIMATES insurer (online/branch/call) ASAP after death. (2) SUBMIT claim form + documents. (3) Insurer verifies. (4) SETTLEMENT within 30 days (IRDAI rule). (5) Payout to nominee (lumpsum/monthly). KEY DOCUMENTS: (1) Death certificate. (2) Claim form. (3) Policy document. (4) Nominee ID + bank details. (5) Medical/post-mortem (if applicable). (6) FIR (accidental/unnatural death). STRATEGIC: nominee should know policy details + location. Inform insurer promptly.
SECTION 45 (Insurance Act): (1) After 3 YEARS of policy, insurer CANNOT reject claim on grounds of misstatement/non-disclosure. (2) Claim is INCONTESTABLE after 3 years. (3) WITHIN 3 years: insurer can investigate + reject for fraud/non-disclosure. KEY: (1) Policies older than 3 years: strong claim protection. (2) Early death (under 3 years): more scrutiny. STRATEGIC: this is why FULL DISCLOSURE at purchase is critical. After 3 years, claims are protected. Buy term insurance early + disclose honestly.
TERM CLAIM REJECTION REASONS: (1) NON-DISCLOSURE of medical history/habits (smoking, pre-existing). (2) FALSE information at purchase. (3) SUICIDE within 1 year (exclusion). (4) DEATH during illegal activity. (5) Policy LAPSED (premium not paid). (6) Within 3 years + fraud detected. AVOID: (1) FULL disclosure (medical, smoking, income, occupation). (2) PAY premiums on time. (3) Accurate nominee details. (4) Buy from high CSR (Claim Settlement Ratio) insurer. STRATEGIC: honesty at purchase + premium discipline = smooth claim. Non-disclosure is #1 rejection cause.
CSR (Claim Settlement Ratio): (1) % of claims SETTLED vs received by insurer. (2) HIGHER = better (95%+ good). (3) IRDAI publishes annually. (4) TOP INSURERS: LIC, HDFC Life, Max Life, ICICI Pru, SBI Life (95-99% CSR). (5) ALSO check AMOUNT settlement ratio + complaint ratio. STRATEGIC: choose insurer with 95%+ CSR for claim reliability. CSR indicates how likely your nominee gets payout. Don't just chase lowest premium — claim reliability matters.
TERM INSURANCE STRATEGY: (1) BUY EARLY (lower premium + 3-year incontestability sooner). (2) FULL DISCLOSURE (medical, smoking, income) — prevents rejection. (3) ADEQUATE COVER (10-15x annual income). (4) HIGH CSR insurer (95%+). (5) NOMINEE knows policy details + documents location. (6) PAY premiums on time (avoid lapse). (7) 80C deduction on premium (₹1.5L). (8) DEATH BENEFIT tax-free (Section 10(10D)). (9) RIDERS (critical illness, accidental) optional. (10) INFORM family about policy. CLAIM: nominee intimates ASAP + submits documents + settlement in 30 days. STRATEGIC: term insurance protects family income. Honest disclosure + reliable insurer + informed nominee = claim success. Foundation of financial protection.