Term Insurance Claim: How to File & Common Rejections

Overview

A term insurance claim is a formal request by a nominee to an insurer to receive the death benefit (sum assured) upon the policyholder's death, provided the policy is active. The nominee must notify the insurer, submit documents like the death certificate and their bank details, and undergo verification.

According to IRDAI’s 2024 policyholder protection framework, life insurers must settle or repudiate a death claim within 15 days of receiving all required claim documents and clarifications, if no investigation is needed. If an investigation is required, it must be completed within 45 days from claim intimation. Any delay beyond these timelines attracts interest at the bank rate plus 2%, payable along with the claim amount.

This guide is for those who want to learn how to file term insurance claims.

When you’re recovering from the loss of a loved one, paperwork is the last thing you want to deal with. Yet, during such emotionally overwhelming moments, term insurance becomes a crucial financial lifeline for the family.

Having handled multiple death claims at Ditto, we understand that life insurance is a sensitive space, and navigating claims can feel confusing, intimidating, and even frustrating when you don’t know where to begin.

That’s why we’ve put together this guide that walks you through the step-by-step process of term insurance claim settlement, the documents required, and tips to ensure a smooth experience.

How to File a Term Insurance Death Claim?

Notify the Insurer Immediately

Inform the insurance company about the policyholder’s death via customer care helpline, email, the insurer’s website, or by visiting the nearest branch office. Provide the policy number, name of the deceased, date and cause of death, and nominee details.

Gather Documents

Prepare and organize all necessary paperwork before submission. Refer to the list of mandatory and additional documents required in the next section.

Submit the Claim

Once all documents are ready, submit the claim to the insurer or the intermediary at a physical branch, via email, or through the company’s online claims portal.

Claim Verification

The insurer will review the claim and documents to validate the request. Natural deaths generally require basic verification, whereas unnatural deaths like accidental deaths, suicides, or deaths occurring within the contestability period (first 3 years of the policy) may trigger a detailed investigation.

Claim Settlement

After successful verification, the insurer proceeds with the settlement. If no investigation is required, the death claim must be settled within 15 days from the date of intimation. In cases where an investigation is necessary, the claim must be settled within 45 days from the date of intimation. Ultimately, the approved claim amount is directly credited to the nominee's bank account.

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Key Tips

Always keep photocopies of all submitted documents and obtain a written or digital acknowledgment for future reference, or if multiple policies are to be claimed.
Be transparent and cooperative. Respond to all insurer queries promptly, and provide complete, honest information. This helps minimize delays in claim settlement.

Documents Required for a Term Insurance Claim

For term insurance claim submission, the required documents depend on the cause of death.

Natural Death (Illness, Old Age, Medical Conditions)

Claim form
Death certificate
Nominee’s KYC (ID + address proof)
PAN or Form 60
Bank details (canceled check/passbook)
Medical cause of death certificate/ hospital documents (if available)

Accidental or Suspicious Death (Accident, Suicide, Homicide)

Death certificate
FIR
Post-Mortem Report (PMR)
Inquest/panchnama
Police final report/charge sheet
Nominee’s KYC
Additional documents, if needed: viscera report, driving license, eyewitness statements, newspaper clippings, etc.

Death Due to Natural Disasters

Death certificate from the government/disaster authorities
Claim form with bank details
Nominee’s KYC
PAN or Form 60
Local authority certificate/eyewitness statements if missing or presumed dead (when the body is not recovered)

Death Outside India

Embassy/consulate–attested death certificate
Local police report (or equivalent FIR)
Certified English translations of documents
A passport copy of the deceased
Proof of cremation or repatriation (if available)

Disputed Cases / Special Scenarios

Standard claim documents (depending on the type of death)
Attested will, legal heir certificate, or succession certificate
Additional investigation reports, if required

For a complete case-by-case list, read our guide on the documents required for term insurance.

Why Term Insurance Claims Get Rejected

Non-Disclosure of Health Information: If you had diabetes, hypertension, or any other Pre-Existing Disease (PED) at the time of applying and did not disclose it, the insurer will reject the claim. Always provide complete medical details at the time of application, even if it means a slightly higher premium.
Policy Lapse Due to Non-Payment: If premiums are not paid on or before the due date and grace period, the policy lapses, and the life cover ceases. If death occurs during the lapsed period, the term insurance claim may not be admissible. Set up an auto-debit so this never becomes an issue.
Incorrect Information in the Proposal Form: Incorrect details, even unintentional mistakes, can result in a claim rejection if the insurer determines that the information influenced underwriting decisions. Fill the form yourself, double-check every entry before submission, and never let an agent fill it on your behalf without your thorough review.
Death Under Policy Exclusions: Most term plans have standard exclusions. Suicide in the first policy year is the most common one listed across plans. Deaths during participation in criminal activity, or nominee involvement in death, can also affect a claim. Read your policy document to understand what is and is not covered.
Outdated or Incorrect Nominee Information: If the nominee details are outdated, an insurance company may request additional documentation to substantiate claims by legal heirs. This adds friction and delays at an already difficult time. Update your nominee details for free anytime, whenever there is a change in your family situation.

Please Note: If the policy lapse happens during the grace period, the insurer may deduct the due premium amount from the claim corpus.

Did You Know?

According to Section 45 of the Insurance Act, 1938, a life insurance policy cannot be questioned on any ground except outright fraud once 3 years have passed from the latest of:

Policy issuance
Commencement of risk
Revival of policy
Addition of a rider

To learn more, read this article on the reasons for claim rejection in term insurance.

Top Insurers by Claim Settlement Ratio (CSR)

The Claim Settlement Ratio (CSR) is the percentage of number of death claims an insurer settles out of the total number of claims it receives in a year. A consistently high CSR across multiple years (ideally 97%+) signals that the insurer has reliable processes and does not look for reasons to reject valid claims.

Below is a ranking of the top 10 insurers based on their three-year average CSR from the financial year (FY) 2022-25.

Rank	Insurance Company	Average (FY 22-25)
1.	Axis Max Life Insurance	99.62%
2.	Bandhan (formerly Aegon) Life Insurance	99.59%
3.	HDFC Life Insurance	99.55%
4.	PNB MetLife India Insurance	99.29%
5.	Canara HSBC Life Insurance	99.28%
6.	Edelweiss Tokio Life Insurance	99.24%
7.	Tata AIA Life Insurance	99.21%
8.	Bajaj Life Insurance	99.21%
9.	Pramerica Life Insurance	99.15%
10.	Aviva Life Insurance	98.93%

Note: CSR data is calculated from the public disclosures by respective insurers. Numbers may vary slightly across sources due to rounding and reporting methodology.

That said, CSR alone should not be the only factor you look at. You also need to consider the Amount Settlement Ratio (ASR), complaint volume, solvency ratio, claim processing time, and annual business volume to get a proper picture of the insurer’s performance.

Why Choose Ditto for Insurance?

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Conclusion

When claiming term insurance, being prepared is the best way to protect your family financially. Always remember that by keeping documents organized, updating policy details, and maintaining transparency, you can ensure a smooth, hassle-free process for your loved ones.

Since not everyone is familiar with how claim settlements work, it is advisable to consult a trusted agent or an intermediary for further guidance. If you have bought your policy through Ditto and need help with a claim, reach out to us for timely assistance.

Frequently Asked Questions

What to do if your term insurance claim is rejected?

Request a written note from the insurer explaining the term insurance claim rejection reasons. If the issue is missing or mismatched documents, submit the required documents and request a reassessment. If unresolved, escalate it to the insurer’s Grievance Redressal Officer (GRO), then raise it on Bima Bharosa. The Bima Bharosa portal states that complaints are addressed within 14 days. If the issue still remains, approach the Insurance Ombudsman for claims up to ₹50 lakh. For higher claim values, you may need to approach a consumer court.

How to claim term insurance after death?

To claim term insurance after death, the nominee should first inform the insurer as soon as possible through the insurer’s website, branch, email, or helpline. Next, they must submit the claim form along with key documents such as the death certificate, policy documents, nominee’s KYC, bank details, and medical or police records if applicable. The insurer will verify the documents and may ask for additional information in case of accidental, early, or suspicious death. Once the claim is approved, the insurer pays the death benefit to the nominee’s registered bank account.

What should I do if your term insurance claim is delayed?

As per IRDAI’s master circular on protection of policyholders’ interests, you can contact the insurer’s grievance redressal cell or escalate to the Insurance Ombudsman in case of delays. If the claim is not settled within the specified timelines, the claimant is entitled to interest at the bank rate plus 2% from the date the insurer receives the claim intimation until the date of payment. This interest must be paid by the insurer automatically, along with the claim amount, to the nominee.

What are the things to keep in mind before making a term insurance claim?

You must pay premiums on time to ensure the policy remains active on the date of death. The registered nominee or legal heir should file the claim with the required documents, which may vary for natural death, accidental death, homicide, or illness-related death. If the nominee details are outdated, the insurer may request additional legal proof. Ideally, file the claim within 90 days. According to IRDAI and its historic judicial precedents (including rulings by the Supreme Court and Bombay High Court), insurers cannot reject a genuine claim only because of delayed intimation if the nominee gives a valid reason.

Are deaths abroad covered?

Yes, especially if you are on a vacation or business trip. The same documents and proofs are required, though language gaps and international processes must be accounted for. If you are planning to relocate abroad permanently for work or education, you are required to notify the insurer. However, remember that the continuation of term insurance coverage would depend on the country. For instance, if it's a war zone or a high-risk area, the insurer may deny the policy coverage request.

How does the death claim work in the case of a missing person in India?

In India, death claims for missing persons need a police FIR and insurer notification. Settlement is usually delayed until a court declares death under Section 108 of the Evidence Act (after seven years). Meanwhile, the family must keep the policy active till then by renewing it on time. In exceptional cases, such as accidents with strong proof, insurers may settle earlier, but with a court declaration or conclusive evidence. If a claim is paid and the missing person later returns alive, the insurer can recover the amount.

What happens if a person’s body is not found in the case of a natural calamity?

For calamity-related deaths, insurers don’t usually wait seven years. They accept official proof like a police FIR, certificates from authorities, or government lists of deceased. Nominees submit these with claim papers, and insurers verify before settling. If documents are insufficient, affidavits or a court declaration may still be required. The key is to prove that the person was present in the affected area and is officially recorded as missing or presumed dead due to the calamity. Since requirements vary by insurer, nominees should inform them immediately and ask for the exact list of acceptable documents before filing the claim.

Can multiple nominees claim a single term policy?

Yes, multiple nominees can be appointed under a single term insurance policy in India, and the policyholder must specify the percentage share each nominee will receive. Upon the policyholder's death, the claim amount is divided among the nominees in proportion to their specified shares. A maximum of three to four nominees can be appointed, and if any nominee is a minor, an appointee (guardian) must be designated to receive the share on their behalf.

Is it possible to claim from multiple term insurance policies?

Yes, you can buy and claim from multiple term insurance policies, either from the same insurer or different insurers, as long as two conditions are met. First, your total cover should stay within your Human Life Value (HLV), which insurers calculate based on age, income, education, and financial profile. Second, you must follow mandatory disclosure by declaring existing policies when buying a new one. Hiding Policy A while buying Policy B can lead to claim rejection for material non-disclosure. After death, the nominee must file separate claims with each insurer using the original or attested copies of the death certificate.

Last updated on: 24 May, 2026