How To Claim Term Insurance of a Missing Person?

But what if the term insurance policyholder goes missing? Such a situation can be financially and mentally tiring. Is it possible to file a claim on a missing individual’s term insurance plan? And what is the procedure to start such a claim? Let’s answer everything in detail: 

Is it Possible to Claim Term Insurance if the Policyholder Goes Missing?

Yes, it is possible to claim the payout of term insurance plans if the policyholder is missing. However, it is better to check with the insurer, as there may be a few insurers who could consider this as a term insurance claim rejection reason.

Note: Before Claming Term Insurance of Missing Person You should know about what is term insurance.

Who Is Considered a Missing Person in India?

In India, a person is considered missing when they cannot be located and their whereabouts remain unknown for a prolonged period, despite genuine and reasonable efforts to trace them. This usually involves filing a missing person report with the police and carrying out follow-ups, inquiries, and public notices to establish whether the person can be found.

In case there is no information on an individual for more than seven years, under Indian law, it is presumed that he or she is no longer alive. This is done under section 108 of the Indian Evidence Act, 1872. This is done only after it is satisfied that all efforts have been made by concerned authorities to try and trace that person.

How do I file a claim for term insurance on a missing person?

Unlike other deaths where it may occur naturally or accidentally, an insurer would not process any claims for a missing person report alone.

• Legal Presumption of Death 
  A policyholder of a term insurance plan cannot be presumed dead till the time they are missing. As a simple rule, a missing individual can only be declared dead legally after a waiting period of 7 years as per law. This means that the benefit from this plan cannot be claimed during this period. 

• Court Proceedings
  Before the insurance claim filing, it is important to start a court proceeding to get a presumption of death certificate. This is legal documents through which insurance claims can be settled in case of a missing policyholder. The court will need you to submit all the documents and testimonials to prove that it was not possible to find the missing person. 

• Insurance Policy Terms
  The other thing that is also worth examining closely is the wording of the policies. Some term insurance policies may cover conditions or requirements to be met in missing person cases. Familiarising yourself with them before will make sure that everything is completed in making a claim.

How Does the Step by Step Claim Procedure Work for a Missing Policyholder?

In case of a missing policyholder, claiming the term insurance plan includes different steps: 

• Filing a Missing Person Report
  In order to initiate the whole procedure, a missing person report must be registered at the local police station. It is proof of disappearance and a necessary document when dealing with legal and insurance issues.

• Acquiring an In-Court Declaration
  In case the insured is proved untraceable for an extended period, seven years as per the Indian Evidence Act, 1872, Section 108, the nominee can file a case in court for the presumption of death. After considering certain documents such as police records and advertisements in newspapers regarding search efforts, the court issues a presumption of death certificate.

• Providing Documents to the Insurer
  Now that you have this court certificate, you need to give it to the insurance company along with the missing persons report, the original insurance policy, proof of identity, and any other documents they need.

• Claim Verification
  The company performs verification to determine if there are inconsistencies or any fraud regarding the claims made. This ensures that the company is on the right track with respect to requirements laid by law.

• Claim Payout
  On successful verification, the insurance company pays the sum assured to the nominee, depending on the policy.

What Key Points to Consider While Making a Claim for Missing Policyholder?

• Be patient: These types of term insurance claims can take time, as they rely mainly on court rulings. This is why it is necessary to be patient during this period.

• Consult a lawyer early: An advocate skilled in insurance law or civil law can assist in courtroom requirements, prepare the paperwork properly, and avoid any delays in the filing of the claim.

• Seek legal guidance early: A lawyer familiar with insurance or civil matters can help you understand court requirements, prepare documents correctly, and avoid errors that could slow down the claim.

• Keep documents ready: Police reports, court papers, policy documents, identity proofs, and correspondence should be safely stored and easy to access. 

• Be prepared for scrutiny or rejection: Insurers may raise questions if there are gaps or inconsistencies in the case. Address concerns raised by the insurer quickly with the help of your legal advisor.

• Keep in touch with the insurance company: You should stay in touch with the insurance company on a regular basis, give them updates when they ask for them, and provide the information requested.

• Know what the policy says: Reading the policy carefully will help you understand what it covers, what papers you need, and how claims for missing people are handled under that plan.

Note: Check all the best term insurance plan in India.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

Wrapping it Up!

Claiming a term insurance when someone has gone missing is never easy, both emotionally and legally. While the process does take time and involves court procedures, it is meant to provide fairness and protect all parties involved. Taking the right steps early, keeping paperwork organised, and staying in touch with the insurer can ease some of the stress along the way.

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