Balasore train accident: How the family members of the deceased can claim insurance if documents are lost

The news of the gruesome train accident in Balasore last week shook the entire country. While the death toll is still rising and the government is yet to declare the exact number of the deceased, several banks and insurance companies have announced different schemes to support the affected families. When such accidents or calamities happen, important documents are often destroyed, making it even more difficult for the deceased's family to proceed with insurance claim-related formalities or other banking-related works.   

 Zee Business reached out to several experts from the finance industry to get an idea of what needs to be done in such situations.   

What should one do immediately in such cases?     

Experts from the industry pointed out that during such incidents, the first and foremost thing to do is to intimate the insurance company or the agent from whom the policy was purchased. The next step is to request that the insurer send a duplicate copy of the policy.  

 "While submitting insurance claims, one has to submit a list of documents to the insurer, such as the death certificate, age proof of the insured, policy documents, deeds of assignment, etc. In this particular incident, all the necessary documents mandated have been waived off, and a soft copy of the policy can be submitted by the nominee to get the claim," said Rhishabh Garg, Head, Term Insurance, Policybazaar.com.   

They also suggested that it is important that family members lodge an FIR for the missing documents of the deceased in such cases. "An FIR regarding the loss of documents can be lodged with the local police. This serves as proof for the insurance company. In the absence of all documents, sworn affidavits can be used as evidence. Collaboration between insurance companies and government bodies can expedite the process and bypass some paperwork requirements," said Kishor Hadke, Claims Manager at Loop, an insurance company.   

 Experts also suggest that it is important to notify railway authorities about the loss of documents and seek their guidance on the necessary steps to be taken as they may have specific procedures in place for such situations and can provide necessary assistance. "Look for any alternative forms of evidence that can support your claim. This could include photographs, tickets, boarding passes, or any other document related to the deceased's travel history. Additionally, collect any available witness statement or testimonial from fellow passengers or individuals present at the scene of the accident. Consult with a lawyer who specialises in railway accidents or insurance claims," said Sanjeev Govila (Retd), a SEBI-Registered Investment Advisor (RIA).  

Officials at insurance companies also added that it is important that the family members report to the insurance company about the incident at the earliest. "For insurance claims related to such disasters, we have simplified our claim processes and documentation to make the procedure easy and smooth for the claimant. The family should immediately inform the insurance companies. We will rely on the list published by the Govt. agencies/institutions/local bodies which confirm deaths," assured Bharti AXA Life Insurance.   

Get proof of the deceased person's presence during the accident   

Experts added that during accidents like these, if the person is proven to be travelling on the same train and their name is on the missing person’s list, their dependents can request the insurer settle the claim.  

"If the missing person’s dependents do not have proof of travel, such as train tickets, but he/she went missing while travelling on the train, then, in that case, the family must wait seven years before the insurance company can settle their claims. This works in accordance with the Indian Evidence Act, Section 108, which states that any individual who has not been heard of for seven consecutive years can be presumed dead," added Garg.   

According to a number of spokespersons from different insurance companies, in such circumstances, beneficiaries can obtain the necessary certificates from the police and the court, and upon the successful submission of the same, the company will consider the claim on its merits.  

"In all such cases, we rely on police reports/records. After 7 years, when the beneficiary obtains a non-traceable report from the police along with a court order showing a presumed death, we may consider the claim based on its merits," mentioned Casparus Kromhout, MD & CEO, Shriram Life Insurance Company.   

Why the nominee is important   

Experts highlighted the fact that it is important to have nominees as things may turn mayhem at any time. "It is highly recommended that the policyholder keeps the family members or nominees duly informed about the policy copy and keep it safe to be submitted at the time of claim," said Garg.   

Spokespersons from various insurance companies said that in the event of the non-declaration of the nominee, the death benefit under the policy should be payable to the legal heirs. However, it is advisable that one nominates their spouse, children, or dependent parents in their insurance policy so that they do not have to face any financial burden in case of such tragic incidents.   

What if someone is missing but has not been declared dead   

In many instances, it has been found that even when some people are reported missing, they are not declared dead. The situation for their family members becomes more challenging during such times. "There are two ways the deceased's family can claim the money. According to regulations, if a person has been missing for seven years, the court declares the person dead. The family members have to file an FIR, get a verification from the court, and approach the insurance company for claims. Having said that, in cases like natural calamities, plane crashes, or terrorist activities, a list of presumed dead people is issued by the government, and most insurers take this list into consideration for the claim process. This way, the claims can be resolved quickly," said Rakesh Goyal, Director, Probus Insurance Broker.