What to Do When Your Life Insurance Claim Settlement is Delayed

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An Overview

Death is certain, and the timing of death is uncertain. Life insurance provides security and peace of mind to policyholders, ensuring that their loved ones remain financially secure even after the death of the life insured. It is said that emotional loss cannot be compensated, but financial loss can be mitigated through life insurance. Insurance is a financial tool for risk management and is a must for every income generator who has dependents.

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Insured individuals have peace of mind because they feel that their family is secure. However, there are instances when the settlement of a life insurance claim gets delayed, which can be distressing for beneficiaries during an already difficult time. If you find yourself facing such a situation, it’s essential to stay proactive and informed about the steps you can take to expedite the process.

It is imperative that the nominee is aware of the policy and informs the insurance company after the death of the life insured. The nominee needs to follow the steps below: 

  • Inform the Insurance Company.
  • Collect claim submission forms from the branch. Provide all evidence regarding the identity of the nominee, including bank details
  • Submit all documents as requested by the insurance company

Understanding Claim Settlement Timelines and Common Delay Factors

IRDAI suggests that once all the documents are submitted, the insurance company needs to settle the claim within 30 days. However, if an investigation is required, it can take up to 6 months for the same. Claim delays can occur for the following reasons:

  • All the required documents are not submitted at once.
  • The nominee has passed away before the life insured.
  • There is a dispute regarding legal heirs.
  • The death occurs early (within three years of policy purchase).
  • The life insured has falsified income/occupation documents and was not eligible for the Sum Assured.

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Proactive Steps to Expedite Your Insurance Claim Processing

Generally, it is an endeavor by the insurance company to expedite the claim process, and only claims where they have doubts or need more information are subjected to investigation, resulting in delays.

If you find yourself facing such a situation, it’s essential to stay proactive and informed about the steps you can take to expedite the process:

  • Write to the insurance company. If there is any deficiency, please complete it and obtain an acknowledgment.
  • Maintain close follow-up with the insurance company.
  • If you are not receiving a response, you may file a complaint with IRDAI. They will ensure a response within 14 days.

It is important to document and obtain acknowledgements at each step.

Insurance Claim Settlement is Delayed


Dealing with a delayed life insurance claim settlement can be emotionally challenging, but staying informed and proactive is essential. By following these steps and maintaining open communication with your insurance company, you can work towards expediting the process and ensuring that your loved ones receive the financial support they need during a difficult time. Remember that patience and persistence are key when resolving insurance claim delays, and seeking professional advice when necessary can help you navigate this complex process.

In case you need any support, you can always reach out to Insurance Samadhan, a grievance redressal platform.

Click here to register your complaint with Insurance Samadhan

Also Read:  Top 5 Reasons for Death Claim Rejection

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