How many types of claims are possible in Life Insurance?

Last Updated: Mon, Aug 27, 2012 09:45 hrs

​There are quite a few types of Claims in the Life Insurance Industry but people associate claims with Death Claims only. Survival and Maturity Claims are often forgotten about. However, Death Claims
constitute of only 14% of the entire Claims of this industry. The remaining 86% of the claims are Maturity Claims.

What is a Death Claim?

myinsuranceclub.comWhen the Life Insured dies, the amount of money payable to his family is called Death Claim. Depending on the type of Insurance cover availed and the policy taken, the Insurance Coverage can also vary. However, there is always a minimum Sum Assured that is definitely payable to his nominee on death of the life insured.

Death intimation is very important in such a case. This is the most common form of Insurance Claim where people are worried about the settlement amount is Death Claim, as there are lots of rules and regulations that the Insurance Company will follow before they pay out the Claim Amount. Proper information, documentation, etc are required in this case.

According to Section 45 of Insurance Act 1938, if death occurs within 2 years of the policy inception, then proper investigation is done before the claim is settled to as to check whether the facts stated on the proposal form at the time of taking the policy had been true or there has been a non disclosure or misrepresentation of material facts. If the facts stated at the time of taking the policy are not found true, then the claim can also be repudiated and the nominee would be denied of any policy money.

What is a Maturity Claim?

When the policy completes its tenure, the Maturity Claim amount is settled towards the life assured. It is usually an easy process, where the life insured needs to fill up the policy discharge form and the maturity amount is paid out without much hassles. The money is usually paid out before the maturity date once the policy discharge paper is duly filled and submitted long before the date of maturity. It usually comes as a post dated cheque. This is the simplest form of Insurance Claim.

What is a Survival Claim?

When money is due to the policy holder before the policy matures, provided he is alive, is called Survival Claim. It is usually settled like a Maturity Claim. This type of claim arises in policies like Money Back Plans where money comes back to the policyholder after regular intervals of 5 to 10 years.

When Life Insurance Policy is taken, it is usually done as a Protection tool for the financial stability of the family. Thus, it comes in most handy in case of the death of the life insured, where the money is required by the family to run daily expenses. Maturity and Survival Claims are anticipated money and

the expenditure can be planned well in advance as their time is known. Death Claim amount cannot be planned as the time of death of the Life Insured is not known ahead of time.

Thus, people are most worried in death claims, as the person who is insured is not around and his nominee might not be well versed with the claim procedures, thus making the process even more lengthy and cumbersome. Hence, each and every individual should be aware of the policy details and the claim procedure so that in case of an emergency, it doesn’t seem too much of a pain to get it settled!


The author is the CEO of, an online insurance price & features comparison portal

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