Looking at ways of filing death and maturity claims - New Sunday Times

Continuing from the week before last, today's article looks at the filing of death claims and maturity claims.

Procedures for Death Claims:

For life policies the death claims can either be contestable or incontestable.

Contestable claims are for death occurring within two years from the date of issue of the policies or date of latest reinstatement of the policies whichever is later. There are two types of contestable death claims:

  • For natural deaths, the documents to be furnished by the deceased's claimant are: physician's statement, death certificate, claimant's statement, five copies of Clinical Abstract Application forms (duly signed and witnessed), proof of relationship, the policy the deceased signed with the life insurance company. And proof of age (if there is any discrepancy).

If there is additional accidental death coverage, in addition to the above, post mortem and toxicology reports and coroner's inquest will also be required.

  • For accident deaths, the documents to be furnished by the deceased's claimant are: All the documents as in cases of natural deaths, plus post-mortem report, police report and newspaper cuttings (if any).

For incontestable death claims for death occurring within two years from the date of issue of the policies or date of latest reinstatement of the policies whichever is later, there are again two types:

  • For natural deaths, the documents to be furnished are: Death certificate, claimant's statement, proof of relationship and proof of age (if there is a discrepancy).
  • For accident deaths, the documents needed are: All the documents as in cases of natural deaths, plus post-mortem report, police report and newspaper cuttings (if any).

For personal accident policies, the beneficiary of the insured (or the deceased) can make a death claim by submitting the following documents:

  • Death certificate, original or certified true copy.
  • Claimant's statement duly signed and witnessed by a person who has no interest in the claims.
  • The policy contract the deceased signed with his/her insurance company.
  • A police report.
  • Post-mortem report or physician statement duly completed by the physician who last attended the insured, if a post-mortem report is not available.
  • Proof of relationship such as a marriage certificate or birth certificate.

Procedures for Maturity Claims:

For endowment life insurance policies, the insurance company pays the amount insured upon maturity of the policy in the event the policyholder survives to the end of the maturity period.

The insurance company would usually inform the policyholder of the impending maturity of his/her endowment policy, and would request the policyholder to follow the following procedures:

  • The insurance company will forward an identity form, a survival form and a discharge form to the policyholder for completion and returned with the policy contract.
  • If the policyholder is the life insured, then he/she must provide proof of age, proof of survival, complete a discharge voucher and submit together with the policy document.
  • If the policyholder is not the life insured, then he/she must give a deed of assignment or any other title document, and a simple statement stating that the person insured is alive but unable to sign the survival certificate.

Endowment life insurance policies usually provide a few settlement options, which the policyholder can exercise upon maturity of the policies. There are four common options:

  • Full amount of the cash proceeds.
  • Convert the proceeds into an annuity, either as an annuity certain or a life annuity.
  • Leave the proceeds as a deposit with the insurance company on agreed terms.
  • Draw the proceeds by installments over a number of years. Interest will be credited to the outstanding balances.

*This article is contributed by Life Insurance Association of Malaysia (LIAM). Articles published previously are now available at LIAM's website www.liam.org.my.