An Overview of the Term Insurance Claim Process in the UAE
In recent times, it has become imperative to buy a term insurance plan for providing securing the financial futures of our families. And, no matter how important it is to buy term insurance in UAE, having knowledge of the claim process is equally essential.
The claim settlement process on a term policy is a request that the beneficiary files to the insurance provider for availing the death benefit in the event of the unfortunate demise of the insured person within the tenure of the plan.
A majority of the insurance providers offer a hassle-free process for claim-settlement such that the nominee can file a claim and avail the coverage amount without any inconvenience.
Here is a detailed claim settlement process for term insurance.
Term Insurance Claim Process
There are many steps involved in the claim filing process on a term insurance policy. In case the insured person passes away, the dependent or the beneficiary of the term plan must inform the insurance provider immediately.
Furthermore, at the time of filing the claim, it is also necessary to have all the documents required handy. Other than this, before the insurance provider is informed about the demise of the policyholder, there are a few things that the nominee has to ensure.
- The real situation for which the claim is being made must be covered in the insurance plan.
- The nominee of the insurance policy must be aware of the exclusions of the policy.
- The term plan must be effective and the premiums must have been paid on a regular basis.
Listed below is the step by step process for filing a term insurance claim.
Intimate Insurance Provider regarding the Claim
For allowing the insurance provider to begin the term insurance claim process, the nominee must inform the insurance provider as soon as he or she can. The information required for starting the claim process includes the name of the policyholder, date of birth of the insured, the reason for death, policy number, names of the beneficiaries, place of death, and more.
The beneficiary of the policy can either get the claim form from the nearest branch of the provider or by downloading it from the official website of the insurance company.
Documents Required for Filing the Claim
Here is a rundown on the required documents that the nominee must keep ready while filing the insurance claim.
- Original policy documents
- Death certificate of the insured
- Policyholder’s age proof
- Any miscellaneous document as asked by the insurance provider or that relates to the case
If the claim has been filed within three years of starting the policy, the insurance provider will conduct an additional investigation for confirming that the claim is genuine. It can do the following things.
- Ask the hospital if the deceased individual was admitted to the hospital or not.
- If the insured person has died due to a critical illness, the insurance provider will ask the hospital for details like a medical record, certificate of the doctor, and more.
- If the authorities at the airlines confirm a plane crash, then the insurance provider can check with the airline if the policyholder was amongst the passengers of the crashed flight or not.
Submitting the Documents Required for the Term Insurance Claim Process
For making the process of the claim settlement quick and avoiding any sort of delay, the beneficiary must submit all the necessary documents as soon as they can. Here are the documents, which are needed during the claim process.
- Claim form duly filled
- Death certificate (original) along with one attested copy (issued from the local municipality)
- Policy documents in original
- Beneficiary’s passport-sized photograph
- Last certificate of medical attendant from the physician
- Medical records including discharge/death details, admission note, test report
- Post-mortem report (if any)
- Assignment/re-assignment deeds (if any)
- Beneficiary’s ID proof (such as Emirates ID)
The claim must be settled within a month. The insurance provider must settle the term insurance claim within 30 days from the date on which the beneficiary has submitted the claim form along with all the necessary documents.
In case the claim needs some extra investigation, then it is important for the insurance company to finish the claim process within six months from the date it has received the official written intimation of the insurance claim.
Necessary Exclusions and Inclusions in the Term Insurance Claim Process
Before beginning the claim process, the beneficiaries must be aware of the exclusions and inclusions. The term insurance plan offers death benefits in the event of both natural as well as unnatural deaths.
However, some clauses are applicable based on the reason of death. For instance, only a few of the insurance providers make payment of the death benefit in case of suicide or return the insurance premium amount, and that too when such an incident occurs within one year of the date of policy initiation. Most of the insurance providers return only a part of the premium.
The insurance industry works on risk assessment functions. This means that your death benefit is dependent on the risk category of the policyholder. Those belonging to the category of high-risk like alcohol consumers or smoker will get different benefits as opposed to those who do not possess any such habit.
The guidelines are mostly similar for all the insurance providers. The easiest way of knowing about the particular exclusions and inclusions on your term insurance is by checking the document of the policy. You also have the option to contact the helpline number of the insurance company for gaining information. As soon as you get the details, you can proceed accordingly.
Special Terminal Illness Plans
At the time of making a claim, the beneficiaries must know if the term insurance plan includes the specific cause of death of the policyholder. Some of the terminal illnesses may not be a part of the general plans. You need to get exclusive coverage for getting death benefits for such cases.
For instance, cancer and AIDS may be an exclusion from your term plan. Some of the policies even offer a part of the sum assured to the policyholder while they are still living if they in the last stage of the disease. The balance of the lump sum amount is given to the beneficiary after the death of the policyholder.
You should contact the insurer as soon as you get diagnosed for making the claim. The insurance provider will have to check the documents for verifying the illness.
Tips for Making an Ideal Claim
In case you buy a term plan online, you will have the facility of managing your policy via the internet and make your claims in a matter of minutes. For making sure that your claim is approved, you can do a few tasks. The most necessary thing to do is make yourself and your loved ones aware of how this process works.
Keep in mind that there are chances that you will not be present while filing the claim. Therefore, you need to tell your nominees about all the necessary details about the plan. This involves the sum assured, terms & conditions, claim process, and other things related to the policy.
Something that must be mentioned to your dependents is that in case you have any additional rider on the policy, it should also be in their knowledge. You obviously would not want your family to miss on any of the benefits when making an insurance claim.
The Bottom Line!
Having knowledge of the term insurance claim process of your insurance provider is very essential. The more is the claim settlement ratio of the provider, the more would be the reliability for buying a term plan. Therefore, before you purchase term insurance in UAE, go through the claim settlement process of the concerned insurer.