How do I claim an LIC policy after the policyholder's death?

Forms and documents

The claimant's statement (LIC Form 3783), giving the deceased's details and the cause of death. The original policy bond — or an indemnity if it is lost. The death certificate. The nominee's PAN, address proof and a cancelled cheque. Where the death was in hospital, a certificate from the attending doctor (Form 3784) and a hospital treatment form (Form 3785); where there was a burial or cremation before a certificate, the certificate of burial or cremation (Form 3801).

Where the death was an accident or unnatural, add the FIR, post-mortem report and police final report — these are what the insurer checks for accident benefits and for exclusions.

Who gets paid

The nominee, if one was registered. Since the 2015 amendment to section 39 of the Insurance Act, a nominee who is the policyholder's spouse, parent or child is a "beneficial nominee" and takes the proceeds as their own — one of the narrow situations where nomination does confer ownership. Any other nominee holds for the legal heirs.

With no nominee, the insurer pays the legal heirs on proof of entitlement: an affidavit, NOCs, and for larger sums a succession certificate. This is where an unnominated policy becomes a longer claim.

Early claims and the three-year rule

If the policy was less than three years old at the death, the insurer investigates before paying — checking the proposal form for undisclosed illness. It is not a refusal, but it adds weeks. Section 45 of the Insurance Act prevents a policy from being questioned on any ground after three years from issue.