Did You Know You Can Claim Life Insurance Of A Missing Family Member? Here’s How To File The Claim

It is important for members of the family to know how to claim insurance for a missing person because it is slightly tricky since it is not certain whether the person is dead or alive.

New Delhi: There are times when a family member goes missing leaving behind the family to fend for life. Some of the reasons of people going missing every year include natural disasters such as cyclones, incessant rains, cloud bursts and landslides. The most recent cyclones in various parts of the country have brought to the fore plight of family members of missing persons, especially in such diffciult times of pandemic.

It is important for members of the family to know how to claim insurance for a missing person because it is slightly tricky since it is not certain whether the person is dead or alive.

What can you do incase a family member goes missing?

In case of the breadwinner of a family had gone missing and that individual has a life insurance policy, the family can avail financial support by claiming life insurance.

However, it is not easy to 'declare' a missing person dead to process a life insurance claim. Under a regular process, the family needs to submit death certification of the missing person with other documents to claim the insurance amount. But in case of a missing person, the family won’t be able to prove a death certificate. It is to be noted that there is a law where a missing person can be presumed dead.

As per the Indian Evidence Act, Section 108, presumptions of death can be made after seven years of filing the FIR (first information report). In order to claim life insurance of a missing person, the family will have to wait for seven years before the insurance company can provide the claim.

Do you need to pay the premium of the policy after the member goes missing?

After the person goes missing, the family members have to continue with the policy and pay the premium to avoid the policy from getting lapsed, especially a term plan.

Firstly, the family will have to obtain a death certificate and then approach the court. After this, the court will release the order to the insurance company. Along with the court order, the legal heirs will also need to submit a copy of the FIR and a non-traceable report by the police.

There are times when the claim for a missing person can be settled before seven years if there's reasonable proof of loss, and there are clear circumstances for the occurrence of death. However, in case of natural calamities, insurance company would not settle claims in absence of incidental proof of death.

However, if the government releases a list of missing persons assumed dead, the insurance company would pay the claim before the waiting time of seven years.