In case of death of the policyholder, the insurance claim is given to the nominee of the policyholder. Conditions like maturity benefit do not apply in life insurance policy.
Many people commit suicide every day in the country. Some people give up due to depression and many people end their lives when others harass them. Recently, a teacher who was a victim of digital arrest in Mauganj district of Madhya Pradesh, committed suicide after being harassed by cyber fraudsters. The fraudster who claimed to be a police officer was demanding 50 thousand rupees from her.
The teacher had also sent 22 thousand rupees online. Even after this, the fraud was continuously pressuring her to send the remaining 28 thousand rupees. In such a situation, the question arises among the people that if the person who committed suicide had insurance, will the company give insurance claim to the family or not.
In case of death of the policyholder, the insurance claim is given to the nominee of the policyholder. Conditions like maturity benefit do not apply in life insurance policy. On the death of the policyholder, the insurance claim is immediately given to the family or nominee of the policyholder after some formalities. But, if the policyholder commits suicide, the family gets the insurance amount only after fulfilling certain conditions.
Life insurance policies issued before 1 January 2014
In case of life insurance policies issued before 1 January 2014, if the policyholder commits suicide within 12 months from the date of commencement or renewal of the policy, the policy becomes void. If the policyholder commits suicide after 12 months from the date of issuance of the policy, the nominee gets the entire sum assured of the policy.
Life insurance policies issued after 1 January 2014
The suicide clause has been changed for policies issued after 1 January 2014. If the policyholder commits suicide within one year of purchasing the life insurance policy, the nominee is given 80% of the total premium paid. If it has been more than one year since the policy was purchased, the nominee gets the full sum assured of the insurance policy.
