Insurers treat suicides like natural deaths
28 Jan, 2014 01:01 PM
Life insurance companies in India, for the purpose of settling insurance claims, treat suicides at par with natural deaths and not as accidental deaths.

Two top officials from the life insurance industry told TOI that for a smooth claim settlement it has to be proved that the person has committed suicide. "This is because we believe most suicides are not pre-meditated," one of the officials said.

However, while settling claims where the insured person died because of suicide, companies also look at when the insurance was bought. In case of suicides, these companies have a one year cooling off period and only after the passage of this period they will settle claims against suicidal deaths.

This means if a person commits suicide within one year of buying a life insurance policy, and it is proved that the insured person had indeed committed suicide, the nominee in the insurance policy will not get any money from the insurance company.

The insurance officials also said that some life insurance policies come with double accident claim benefits. In case of a suicide, the nominee in the policy can not claim the extra sum assured for accidental deaths. In cases where the death is not due to natural causes and also it is not proven to be suicide, it is accepted as an unnatural death and extra claims for accidental deaths usually kick in, they said.
Source : The Times Of India

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