In whose favour is the claim settled if the insured dies after the date of maturity but before the settlement of claim?
In such cases, the policy will vest in the deceased’s estate and the claim is paid to the heirs
In whose favour is the claim settled if the insured dies after the date of maturity but before the settlement of claim?
Sheena Tony, Mumbai
In such cases when the policyholder dies after the maturity date of the policy and before the claim is paid, the policy will vest in the deceased’s estate and the claim is paid to the heirs. Do not mix this with the nomination, as the nominee in a policy receives the policy proceeds only when the insured dies before the maturity date of the policy that is when the policy is valid for the benefits promised to the policyholder. The insurer may settle the claim in favour of all the heirs on joint discharge on the basis of an indemnity bond but if the claim amount is large, he may ask for a succession certificate or other proof of title.