Government has issued specific directive to Life Insurance Corporation of India (LIC) to accept a certificate issued by the Government concerned with regard to persons missing in recent Uttarakhand tragedy. Necessary instructions in this regard have also been given by IRDA to all life insurers for expeditious settlement of death claims of the victims of Uttarakhand tragedy. LIC has set up special help desks in their divisional and branch offices to assist the affected persons. Public Sector General Insurance Companies (PSGIC) have also set up “Apda Rahat” Camps to facilitate the lodging of claims of affected persons & property. The Insurance Regulatory and Development Authority (IRDA) has informed that all life insurance companies have been advised to take up proactive initiatives for settlement of claims based on terms and conditions of the contract governing a policy of insurance.

LIC has issued a circular on 24.06.2013 regarding the concessions and relaxations to policyholders affected by flash floods and landslide in the State of Uttarakhand. For Uttarakhand victims, Claim Format has been simplified and a Certificate issued by any Government Department, is being accepted as proof of death. PSGIC have also devised relaxed norms for quick settlement of claims.

This was stated by Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Rajya Sabha today.

Acceptance of government certificate as proof of death to expedite insurance claim settlement for disaster-affected policyholders. Insurers are directed to accept a government department certificate as proof of death for missing persons and to adopt administrative relaxations to expedite claim settlement: simplified claim formats, dedicated help desks, and relief camps to assist lodging and processing, implemented via insurer circulars and IRDA guidance to ensure proactive settlement consistent with policy terms.