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How to settle a claim in case the original policy is lost?

For settlement of claims, either through maturity or death of the policyholder, the procedure given below must be followed:

• Lost policy questionnaire form duly completed by the policyholder is called only in case of maturity claims. This can be obtained from the local Divisional office of LIC.
• No advertisement is necessary for the loss of the policy.
• No surety is required either for settlement of claim up to Rs.5000/-. For settling claims above Rs.5000/- but below Rs.10000/-, a surety is accepted by LIC without any verification. And in case of claims exceeding Rs.10000/-, the concerned Branch manager must verify the financial status of the surety. Procuring this report takes some time so the income tax returns for the last three years in respect of the person agreeable to stand as surety are called for. However, where one surety is not available for the requisite amount, two different sureties of sound financial standing are also acceptable. The surety should be completely unrelated to the life assured or the claimant.
• Indemnity bond is waived in the case of claims up to Rs.1000/-. And for payment of claims exceeding Rs.1000/-, a stamped Indemnity bond is also required.
• Discharge form and form of declaration of no assignment duly completed by the policyholder or the claimant are also required.

As long as these requirements are fulfilled and submitted promptly, the branch office can settle the death claim without delays. Early death claims however involve investigation and careful scrutiny before they are settled.