The policyholder is missing — can the family make a life insurance claim?

A life claim is paid on death, so the family needs proof of death that the insurer will accept. Where a person has not been heard of for seven years by those who would naturally have heard from them, the law of evidence shifts the burden onto anyone who says the person is alive — a rule applied in court proceedings. Meanwhile, keep the policy in force by paying the premiums, tell the insurer in writing that the policyholder is missing, and ask it what it will need.

This is one of the hardest situations a family faces, and it is slow. The steps below are about protecting the policy while the question of death is open, and getting the insurer's requirements in writing early.

What the law says about a person not heard of

The Bharatiya Sakshya Adhiniyam, 2023 replaced the Indian Evidence Act, 1872. Under it, if a person is shown to have been alive within thirty years, whoever says the person is dead has to prove it. But if it is proved that the person has not been heard of for seven years by those who would naturally have heard of them if alive, the burden shifts to whoever says the person is alive.^[1]

The Adhiniyam applies to judicial proceedings before courts. It does not by itself tell an insurer what to accept: IRDAI's example list of claim documents names a death certificate, and LIC's list, for example, asks for evidence of title to the estate where the policy has no nomination. So ask the insurer, in writing, what it will accept in place of a death certificate, and ask a lawyer whether a court's declaration is needed in your case.^{[1, 2, 3]}

Keep the policy alive meanwhile

A life policy stays in force only while premiums are paid as the policy specifies. If a premium is not paid within the grace period — 15 days for monthly premiums and 30 days for other modes — the policy lapses. Paying the premiums while the question is open keeps the cover in force; ask the insurer how to pay if an auto-debit has stopped.^[3]

A lapsed policy can be revived within the period in the policy document, but revival needs the unpaid premiums with interest or a late fee and may need a health declaration or medical examination — which a missing person cannot give. So act before the policy lapses.^[3]

Steps for the family

1. 1

   Keep the police records.

   Keep a copy of the missing-person report and any later updates; they are part of the record of the disappearance.

2. 2

   Write to the insurer.

   Tell the insurer in writing that the policyholder is missing, give the policy number, and ask how to keep paying premiums and what it will need to settle a claim if death cannot be certified. Keep its reply.

3. 3

   Keep a dated record.

   Note searches, contacts with hospitals, police and the policyholder's employer, and every letter to and from the insurer.

4. 4

   Take legal advice on proof of death.

   Whether a court's declaration is needed, and when, is a legal question. ClaimAssure does not give legal advice.

5. 5

   When the claim is made.

   The usual claim steps then apply; see filing a death claim. If the insurer refuses, the grievance route applies; if the insurer then rejects your written complaint, replies unsatisfactorily or does not reply within one month of receiving it, you can go to the Insurance Ombudsman, within one year of receiving the insurer's decision or, if it never replied, of the end of one month after you sent your complaint.^[4]

ClaimAssure is an independent private platform. It is not an insurer, IRDAI, Bima Bharosa or the Insurance Ombudsman, it never files anything on your behalf, and it cannot promise any outcome. What it does is read your documents and show you what they say.

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