Death claim settlement ratio is one of the greatest strength of LIfe insurance Corporation of India(LIC). LIC has settled 98.19% of claims in the period 2014- 2015 as per the IRDA report. The claim settlement ratio of private companies stays way back at 89.4% only.
Recently LIC has decided to relax the claim investigation procedure of early claims further, through a new circular dated 30th Nov 2015.
A death claim falls under the category of early claim, if the claim occurs within three years from the date of issuance or revival of the policy.
Customer friendly moves like this from LIC has to be appreciated.
Lets have a look at new relaxations.
- Death claim investigation procedure will be waived if the sum Assured is not more than 1 lath , subject to the condition that the policy does not belong to high risk category.
- If a policy acquires paid up value after its revival and death claim takes place where in only paid up value is payable due to lapsation, the death claim investigation is waived.
- If death occurs due to accident, investigation procedure will be waived if Final police report, Postmortem Report etc, are submitted.
- Investigation procedure can be waived if the death occurs due to suicide which is proved by Postmortem report and Police report.
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