Q.Distinguish between a maturity claim and a death claim, and outline the procedure for settling a death claim.

A claim can arise on survival or on death, and the two follow different settlement routes.

Difference between the two claims.

• A maturity (survival) claim arises when the policyholder survives to the end of the term (or a money-back instalment falls due). The insurer already knows the date, so settlement is simple.
• A death claim arises when the life assured dies during the term. The date is unknown in advance and the claimant's title must be established, so more documents and verification are needed.

Procedure for settling a death claim.

1. Intimation of death — the nominee or legal heir informs the insurer in writing, giving the policy number and the date, place and cause of death.
2. Submission of documents — the claimant submits the death certificate, the policy bond, proof of the claimant's title (nomination, assignment or legal succession) and the insurer's claim forms; for early or unnatural deaths, medical/police/hospital records may also be required.
3. Verification — the insurer checks that the policy was in force, that the claimant is entitled, and that there is no fraud or suppression of a material fact.
4. Payment — once satisfied, the insurer pays the sum assured with bonuses to the nominee, assignee or legal heir. …

Do not forget that a claim is payable only if the policy was in force on the date of the event. Students also omit proof of title (nominati …