Postal life insurance provides safety in case of the death of a policyholder to their family, hence it is necessary to know the PLI death claim rules in case of the unfortunate death of the policyholder before submitting his death claim in the Postal life insurance policy. Here we will provide a detailed guide on PLI death claim rules, forms and affidavit to be submitted with the claim, necessary documents for a claim, and how to submit the death claim to avoid the rejection and early settlement of PLI death claim.
Type of Death claim cases:- Postal Life Insurance/Rural Postal Life Insurance Policies.
Life insurance stands as a crucial shield for our loved ones in the unfortunate event of an untimely demise. The primary and fundamental reason for investing in a Life Insurance Policy is to secure financial assistance for those we care about.
Here we will check in detail in case of the sudden demise of the PLI/RPLI policyholder, what the PLI death claim procedure is against the PLI/RPLI policy, however before this we will also check the different types of death claims in PLI and process to apply for the same.
When we extend coverage under the Postal Life Insurance/Rural Postal Life Insurance (PLI/RPLI) to a new individual, it marks the initiation of our relationship with the customer.
A critical aspect of any insurance business is the timely settlement of Death claims/Maturity claims. In the competitive landscape of insurance markets, PLI/RPLI operates in a significant capacity.
As per the Annual Report of the Insurance Regulatory and Development Authority of India (IRDAI), main insurance players typically take around 30 days to settle a death claim.
However, as per the report, PLI in its Citizen Charter, has committed to settling PLI/RPLI death claims within 30 days for normal cases and 90 days for cases involving inquiries.
PLI must address and rectify these delays to uphold the integrity of our commitments and maintain a positive trajectory in our business.
PLI Death Claim Rules -Classification of PLI Death claims based on Period
The duration between accepting a proposal and the death of the insured person is crucial in deciding how to handle death claims. In PLI/RPLI, death claims can be classified into different types based on this period.
(a) Based on the period of the Insurance Policy: –
- PLI Claims where Death of policy holder happened after completion of 3 years from the date of acceptance of a proposal or date of revival of the policy, whichever is later.
- PLI Claims that the death of the policyholder happened before the completion of 3 years from the date of acceptance of a proposal or date of revival of the policy, whichever is later.
(b) Based on the Cause of Death of the Insurant
- Natural Death – All deaths except death by suicide, murder, or accident.
- Un-natural Death – Death due to suicide, murder, or accident.
PLI Death Claim Procedure:-
In case of the death of the main policyholder, the nominee or relative of the policyholder will check the policy document and nomination in the policy, so here to follow the simple steps, PLI death claim can be submitted as under:-
Step-1 Claimant will collect all relevant documents of the holder and self and check in which favor the nomination is available in the policy.
Step-2 The PLI/RPLI policy Death Claim Application Form (Annex-I) along with the required documents can be submitted by the Claimant (Nominee(s) or Legal Heir(s) as the case may be) at any CPC/Head Post Office.
These documents will be submitted with the PLI Death Claim Application:
- PLI Death Claim Application form
- Original PLI Policy or Bond or Letter of Indemnity in case original policy bond is not available
- Self-attested copy of the Death Certificate of the policyholder,
- Self-attested copy of ID and Address proof of the claimant and mobile and email ID and relationship with the policyholder.
- Cancelled Cheque for Bank mandate of claimant
- Self-attested copy of Legal Documents in case the nomination is not available in the policy.
- Cop of FIR and Postmortem report in case of death due to accident, attested by the claimant.
- Indemnity Bond as mentioned in Annex-VI from Claimant
- DDO certification of premium deduction from salary in case pay policy
- Premium receipt book in case of cash policy.
- In this case, Letter of Indemnity and Indemnity Bond must be Notarised by a Public Notary on non-judicial stamp paper.
- In case, the premium payment is not updated in PLI Pay Policies in the system, a certificate from the Employer/DDO about the deduction of premia and details/copy of the premia schedule sent to India Post.
- In case, the premium payment is not updated in PLI cash policies in the system, the Premium Receipt Book is mandatory for the updation of Premia paid by Insurant in the system.
Step-3 After submission of the PLI death claim case, if the policy period is more than 3 years, the claim is normally settled by PLI within 30 days.
In case original policy documents/policy bond is not available:-
If no original policy bond is available then the claimant has to submit a letter of indemnity bond as per Annexure-III.
PLI Death Claim Rules:- Process of settlement of claim
For settlement of a PLI death claim, there are some PLI death claim rules, for a claim of PLI/RPLI policy having a period:-
- (a) Less than 3yr – Detailed investigation is involved before the death claim settlement
- (b) More than 3 years no detailed investigation is required and settlement is within 30 days.
(a) If death happened after 3 years from the date of acceptance of a proposal or date of revival of the policy, whichever is later, the claim settlement will be as under:-
- As per the Insurance Regulatory and Development Authority of India (IRDAI), insurers have a three-year window to challenge a policy due to misrepresentation or the suppression of a material fact that doesn’t amount to fraud.
- This window starts from the date of policy issuance, the date of commencement of risk, the date of policy revival, or the date of adding a rider to the policy—whichever is later. This rule applies irrespective of whether a claim has been made or not and when it’s reported.
- Once this three-year period elapses, the policy cannot be contested. Therefore, if a death claim related to a policy arises after three years from the date of proposal acceptance or policy revival, whichever is later, no inquiry is necessary.
(b) Process of settlement of Death occurs within 3 years from the date of acceptance of a proposal or date of revival of the policy, whichever is later no inquiry is required:-
- Suppose the death of the Policyholder happens within three years from the date of proposal acceptance or policy revival, whichever is later.
- In that case, it is required to submit all relevant documents, including the signed death claim application on the provided checklist (Annex-IV) to conduct a death claim inquiry and processing.
- Such PLI death claim case will be treated as early death claim cases.
- A detailed inquiry will be conducted by PLI for such early death claim cases.
In case No nomination in the policy or the nominee died before the policyholder:-
- In case there is no nomination in the policy or the nominee dies before the death of the PLI Policyholder, the PLI death claim will be paid to the legal heir of the policyholder on the production of the succession certificate.
- However in the event of a death claim for an amount up to ₹3,00,000 (three lakh only), where there is no nomination or the nominee predeceases the insured, the requirement for producing a succession certificate may be waived by the Head of Circle.
- However, waiver of the succession certificate is subject to the recommendation of the Postmaster General concerned based on valid grounds.
In case of more than one nominee in PLI Policy and the death of any nominee:-
In such a case, the claim will be paid to the surviving nominee only.
Lapsing of policy within 36 months and settlement of death claims
- in case the death of the PLI Policyholder occurs within 6 months of the date of acceptance of the policy, no remission period beyond the period of grace shall be allowed.
- In case the death of the PLI Policyholder occurs within 12 months but not before the completion of 6 months from the date of acceptance of the policy, a remission period of 30 days shall be allowed in addition to the period of grace i.e two months’ default may be allowed.
- In case the death of the PLI Policyholder occurs within 24 months but not before the completion of 12 months from the date of acceptance of the policy, a remission period of 60 days shall be allowed in addition to the period of grace i.e three months default may be allowed.
- If the death of the PLI Policyholder occurs within 36 months but not before the completion of 24 months from the date of acceptance of the policy, a remission period of ninety days shall be allowed in addition to the period of grace i.e 4months default may be allowed.
For example:-
- If the policy starts on Jan-2024 death happens in July-2024 and the July-2024 premium is not paid then:-
- The claim will paid as a one-month grace period( premium paid jan to June and July month grace) but if death in Aug-2024 no claim as no further remission period is allowed
- If the policy Starts on Jan-2024 and the Premium paid up to Nov-2025:-
- if death on Mar-2026 claim will be paid ( Dec-25 -one month grace- Jan-Feb-Mar-26 as 90 days additional grace period) & If death on Apri-2026 no claim.
In case of death claim of Non-medical PLI policy:-
For more details of death claim settlement in case of non-medical policy please check here
May also Check –
- Free look in PLI
- PLI Death Claim Form-
- PLI Death claim SOP- Click here
PLI Death Claim Calculator:-
When the PLI death claim is submitted by the nominee, then we need to check PLI death claim amount to be sanctioned by the PLI.
In case of a death claim in PLI or RPLI policy, if the claim is sanctioned/approved by the PLI basically two components in PLI policy is paid to the nominee:-
- One is the full amount of the sum assured
- Another is the accrued bonus amount till the date of death of the policyholder, in case of any unpaid premium or outstanding loan amount the same due amount is deducted from the death claim amount. Let’s check here, PLI death claim value calculation as under:-
Example as :-
- Policy sum assured- 10 lakh Death of policy holder after 5yrs.
- Death claim will be Rs. 10 lakh + bonus of 5yrs.
- Bonus calculation :- SA* rate of bonus per thousand* no of year/100 ( 10,00,000x52x5/1000)= 2,60,000/-
- Total Death claim= 12,60,000/-
Process for appeal in case death claim rejected by PLI:-
To enhance the quality of customer services, a new provision of Appeal is being introduced for all death claim cases. This provision applies specifically when the approving authority determines that the claim is not suitable for approval and rejects it.
Now, claimants such as nominees or legal heirs have the option to appeal against the rejection of a death claim case related to PLI/RPLI.
Time limit to file the Appeal in Death claim in PLI/RPLI:-
- The claimant can submit an Appeal within 90 days of receipt of the rejection letter.
- If submitted after 90day may be considered by PLI if the reason is satisfactory. How and where to submit an appeal against PLI/RPLI Death claim:-
- Apeas against rejection of PLI death claim can be submitted in writing to the Appellate Authority personally or through post/email.
- Alternatively, the appeal can also be submitted at any Central Processing Center (CPC).
- The CPC will promptly forward the appeal to the relevant Appellate Authority, either by Registered Post or through proper entry.
- The appellant should provide detailed grounds for the appeal, and relevant documents should be enclosed to support their case.
Conclusion:-
As we summarized PLI death claim cases are settled based on the duration of the PLI policy, in case the policy is more than 3 years old no detailed inquiry is required.
However, if the policy period is less than 3yrs i.e. policyholder death happened within 36 months of acceptance of PLI/RPLI policy then a detailed inquiry will be conducted by the PLI.
Similarly, in case the death claim case is rejected due to any reason, the claimant can submit an appeal against the rejection of the PLI/RPLI policy claim within 90 days.
FAQ
What is the death benefit of PLI?
PLI Death benefit is the full sum assured plus accrued bonus to be paid to the claimant.
What is the time limit to settle a death claim in PLI?
The policy needs no investigation and the PLI claim should be paid within 30 days or if a detailed investigation is required the claim should be settled within 90 days.
Who approves early death claim cases in PLI?
Director GPO (JAG)/ Director (HQ)/ Regional DPS (JAG) will approve all early death claim cases in PLI irrespective of the sum assured.
How Death claim is settled in PLI money back or AEA Policy?
In case of a death claim in AEA policy at any time during the term of the policy, the full sum assured will be paid along with the accrued bonus without making any adjustment to the periodical survival benefit payments already made.
How death claim settled in case of PLI policy revived in installment and death during the revival period?
If the PLI policy is revived in installments and the insured passes away after the initial installment of arrears has been paid, the policy will be considered active and will be accepted for death claim This is contingent upon the insured consistently paying all other regular premiums, excluding the arrears permitted to be paid in installments.
Source :- India Post