Death Claim Process — Documents, Timelines & IRDAI Mandates
The stages of a life insurance death claim from intimation to payment, the time limits IRDAI sets for the insurer, interest for delay, and the special rule for death by suicide in the first 12 months.
What a death claim is
A death claim is the request made by the nominee or other claimant for payment of the policy benefit after the life assured dies. It is governed by the Insurance Act, 1938, the IRDAI (Protection of Policyholders' Interests, Operations and Allied Matters of Insurers) Regulations, 2024 and the Master Circular of 5 September 2024, which replaced the 2017 regulations.
The person who claims is usually the nominee named under section 39 of the Insurance Act. Where there is no nominee, the legal heirs claim and have to prove their title.
The stages
The first stage is intimation: the claimant tells the insurer that the life assured has died. The time limits on the insurer are counted from this point, which is why the date of intimation matters.
Next the claimant submits the documents. The insurer lists them in the policy and on its website, so the list for a given policy is known in advance. The insurer then assesses the claim against the policy and the proposal, and investigates where the circumstances warrant it.
The process ends in one of two ways: settlement, meaning payment of the benefit, or a reasoned rejection. A rejection has to give reasons, and where it rests on what was said in the proposal, section 45 of the Insurance Act limits when and how the insurer can raise it.
The time limits
A death claim that needs no investigation must be settled within 15 days of intimation. Where investigation is warranted, the claim must be investigated, decided and paid within 45 days of intimation. Older material quotes 30 days from receipt of all documents and 90 days for completing an investigation, which were the figures under the 2017 regulations.
If the insurer misses the limit, it must pay interest at bank rate plus 2% from the date of intimation until payment. It pays this on its own, without the claimant having to ask.
Death by suicide
Suicide is dealt with in IRDAI's Master Circular on Life Insurance Products (12 June 2024), not in section 45. For suicide within 12 months of the start of risk or of a revival, a non-linked policy pays at least 80% of the premiums paid or the surrender value, whichever is higher, instead of the sum assured.
For a unit-linked policy (ULIP) the amount is the fund value, with charges other than fund management charges added back.
Rules at a glance
Counting the days from intimation
Illustration: Shalini's husband dies and she intimates the claim to the insurer on 4 August, sending the documents on the insurer's list. If the insurer sees no need to investigate, the claim is to be settled within 15 days, that is by 19 August.
If the insurer decides an investigation is warranted, it has 45 days from the same date, so the claim must be decided and paid by 18 September. In either case, a payment made after the limit carries interest at bank rate plus 2% counted from 4 August.
The amount payable on suicide in the first year (illustrative figures)
- Assumptions, for arithmetic only: a non-linked policy with a sum assured of ₹25,00,000; premiums paid up to the date of death ₹1,00,000; surrender value on that date ₹30,000; death by suicide in the ninth month after the start of risk.
- 80% of premiums paid = 80% of ₹1,00,000 = ₹80,000.
- Compare with the surrender value: ₹80,000 is higher than ₹30,000.
- Minimum amount payable = ₹80,000, not the sum assured of ₹25,00,000.
Result. At least ₹80,000 is payable on these figures. Had the death occurred after 12 months from the start of risk, with no revival in between, this rule would not apply.
Key points
- A death claim moves through intimation, documents, assessment, investigation where warranted, and settlement or a reasoned rejection.
- Without investigation the claim must be settled within 15 days of intimation; with investigation, within 45 days.
- Late payment carries interest at bank rate plus 2% from the date of intimation, paid without being asked.
- The documents needed are those the insurer lists in the policy and on its website.
- Suicide within 12 months of risk start or revival brings at least 80% of premiums paid or the surrender value under a non-linked policy.
Common misunderstandings
- The 30-day and 90-day limits are out of date: the current limits are 15 days and 45 days, both counted from intimation.
- The 45 days are not added to the 15: an investigated claim has 45 days in all from intimation.
- The suicide rule is not part of section 45 of the Insurance Act: it is in IRDAI's Master Circular on Life Insurance Products.
Questions people ask
From which date do the insurer's time limits run?
From the date of intimation of the death claim, for both the 15-day and the 45-day limit, and interest for delay is also counted from that date.
Does the claimant have to demand interest for a late payment?
No. The insurer must pay interest at bank rate plus 2% on its own.
Where is the list of claim documents found?
In the policy and on the insurer's website. The insurer lists the documents it needs for a death claim.
What this lesson relies on
- Insurance Act, 1938 — sections 39 and 45
- IRDAI (Protection of Policyholders' Interests, Operations and Allied Matters of Insurers) Regulations, 2024
- IRDAI Master Circular on Protection of Policyholders' Interests (5 September 2024) — claim timelines and interest
- IRDAI Master Circular on Life Insurance Products (12 June 2024) — suicide clause
This lesson was reviewed independently against these sources on 8 October 2026. Rules change: check the current regulation, scheme document or policy wording before relying on any figure. This is education, not advice.