Claim Process Under MWP — Documentation & Disbursement
How a death claim on an MWP policy is made and paid: who claims, why there is no nominee, the documents, IRDAI's time limits for settlement and the interest owed for delay.
An ordinary claim, with the trust deciding who is paid
A death claim on an MWP policy follows the ordinary life claim process. The death is intimated to the insurer, the claim papers are submitted, the insurer assesses the claim and pays. What is different is the person paid: the trust under section 6 of the Married Women's Property Act, 1874 decides that.
Who claims and receives the money
The insurer pays the special trustee appointed for the policy, who claims and receives the money and holds it for the wife and children according to the interest expressed in the policy. If no special trustee has been appointed, the money is payable to the Official Trustee of the State, who holds it on the same trusts.
There is no nominee to pay. Section 39(12) of the Insurance Act, 1938 says the nomination provisions do not apply to a policy to which section 6 applies. Nor is the money part of the husband's estate for his heirs to claim.
Documents
The papers needed are those in the insurer's claim checklist, as for any death claim. The payee is the trustee recorded for the policy. The Act itself lists no claim documents.
Time limits and interest
The same timelines apply to an MWP policy as to any other life policy. Under IRDAI's Master Circular on Protection of Policyholders' Interests of 5 September 2024, a death claim must be settled within 15 days of intimation where no investigation is needed, and within 45 days of intimation where it is.
If the insurer pays later than the timeline allows, it owes interest on the claim amount at the bank rate plus 2%. Older material quotes longer settlement periods under the 2017 regulations; those were replaced in 2024.
A complaint about delay goes first to the insurer. If it is rejected, or not answered within a month, the claimant can approach the Insurance Ombudsman.
Rules at a glance
Who signs the claim form
Illustration: Naveen dies leaving a wife, Rekha, a son of 12 and an MWP policy on which his brother-in-law Sunil is the special trustee. Rekha assumes she must claim, as she would on Naveen's other policy where she is the nominee.
On the MWP policy it is Sunil who claims. He submits the papers on the insurer's checklist and receives the money as trustee, holding it for Rekha and her son in the interests expressed in the policy. Naveen's other heirs have no claim on it, because the policy is not part of his estate. Had no special trustee been appointed, the money would have been payable to the Official Trustee of the State.
Due dates and interest on a delayed claim
- Assumptions, for arithmetic only: a claim of ₹1,00,00,000 on an MWP policy; death intimated to the insurer on 3 August; a bank rate of 6.5% a year, assumed for the arithmetic and not the actual rate.
- No investigation needed: 15 days from 3 August end on 18 August.
- Investigation needed: 45 days from 3 August end on 17 September.
- Interest rate for delay = assumed bank rate 6.5% + 2% = 8.5% a year.
- Interest for a full year on the claim = 8.5% × ₹1,00,00,000 = ₹8,50,000.
- Interest for each day of delay = ₹8,50,000 ÷ 365 = about ₹2,329.
Result. The claim is due by 18 August, or by 17 September if investigated. On the assumed bank rate, each day of delay costs the insurer about ₹2,329 on a ₹1 crore claim. The actual rate is the bank rate in force plus 2%.
Key points
- A death claim on an MWP policy follows the ordinary life claim process.
- The money is paid to the special trustee appointed for the policy, or to the Official Trustee of the State if there is none.
- Nomination under section 39 of the Insurance Act does not apply to a section 6 policy.
- A death claim must be settled within 15 days of intimation, or 45 days where investigation is needed.
- Late payment carries interest at the bank rate plus 2%.
- The money is held by the trustee for the wife and children; it is not part of the husband's estate.
Common misunderstandings
- The wife does not claim as nominee on an MWP policy: section 39 nomination does not apply, and the trustee claims and receives the money.
- An MWP claim is not on a slower timeline: the 15-day and 45-day limits apply as to any life policy.
- The 45 days do not run from the end of the investigation: both limits run from intimation of the claim.
- The heirs under a will or succession law cannot claim the MWP money: it is not part of the husband's estate.
- A missing trustee does not block the claim: the money is then payable to the Official Trustee of the State.
Questions people ask
Who receives the claim if a special trustee was appointed?
The trustee appointed for the policy, who holds the money for the wife and children.
What interest does the insurer owe if it settles late?
Interest on the claim amount at the bank rate plus 2%.
Are the periods in older material still correct?
No. Older material quotes longer periods under the 2017 regulations, which were replaced in 2024. The current limits are 15 days from intimation, or 45 days where investigation is needed.
Where does a complaint about a delayed claim go?
First to the insurer. If it is rejected or not answered within a month, the claimant can approach the Insurance Ombudsman.
What this lesson relies on
- Married Women's Property Act, 1874 — section 6
- Insurance Act, 1938 — section 39(12)
- IRDAI Master Circular on Protection of Policyholders' Interests (5 September 2024)
- Insurance Ombudsman Rules, 2017 (as amended 2023)
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.