How to claim life insurance if the policyholder goes missing?

In the event that the policyholder passes away within the policy's term, life insurance offers financial stability to the surviving family members. Following the standard procedure, beneficiaries can request the promised payment after providing documentation of the policyholder's demise. What transpires, though, if the policyholder vanishes during the term and his demise cannot be established?

According to Indian Evidence Act section 108, a death presumption may only be submitted seven years after the missing person's First Information Report (FIR) was filed. Hence, as a family member of a missing individual, you must hold off on submitting a claim against his or her term insurance policy for seven years.

In addition, the family of the missing individual should be required to continue paying the premiums for the term insurance policy.Before going to court, the family must first get the death certificate. Only at that point will the court release the instructions to the insurance company. For the insurance proceeds to be paid out, the legal heirs must also give the insurer a copy of the police's FIR and non-traceable report, as well as the court orders.

How to claim life insurance if a person is missing?

The individual may remain unaccounted for if they have been kidnapped, lost, or if they have passed away and the corpse has not yet been found. It is challenging to obtain all the necessary paperwork for the claim when the insured individual is gone. If the insured person is absent, the procedure for submitting a claim for life insurance is different. here is what the claimants can do:

File an FIR

Initially, a missing person report should be made to the police by the beneficiary or any other individual who was not in communication with the policyholder.

Get verification from court

A non-traceable report is acquired from the police if the person is still unaccounted for seven years after being reported missing. The court is then notified of the report to obtain an order in the event that the deceased person covered by the report has died away.

Visit the insurance company

The beneficiary should contact the insurance provider with the court's declaration after obtaining the requisite court documentation, such as the death certificate. The insurance company will be required to distribute the cash from the assured death benefit under the rebuttable presumption of death.

After seven years after filing the FIR, presumptions of death may be formed in accordance with Section 108 of the Indian Evidence Act (first information report). The family must wait seven years before the insurance company will pay out on a life insurance claim for a missing individual.

Can policy still be continued?

Only if insurers accept the payments may family members maintain a policy after a person goes missing; otherwise, the policy, particularly a term plan, may lapse.

How long does the insurance company take to resolve a claim?

In rare circumstances, insurers may shorten the seven-year period and pay recipients the insurance claim sum earlier. These occurrences might be terrorism attacks or natural disasters.

When Can You File An Insurance Claim If The Policyholder Disappears?

You must wait seven years after the policyholder disappears as the beneficiary. You must pay the premiums for the term insurance throughout this time period to keep it active; otherwise, it expires. Only after finishing this term can you start the claim procedure.