Insurance questions PART-1

What is Maturity claim?

• Maturity claim is a type of claim, wherein the insured fills a maturity claim form. It is sent along with the original policy document to the insurance company before the maturity date to get the timely settlement from the insurance company as post dated cheque or ECS (Electronic Clearance Service) payment on the maturity date.

What is Death claim?

• Death claim is a type of claim made by the nominee of the insured to the insurance company due to death of the insured, abiding by the policy terms and conditions.

What is Valid claim & Fraudulent claim?

• An insurance company validates the authenticity and amount claimed by the insured in-order to prevent the insurer from exaggerating the claim amount  & the claim fraudulently.
• If it is a valid reason it is classified as a valid claim or else it is classified as a fraudulent claim, thereby if insurance suspects of fraudulence in the claim.

What do you mean by Policy, not in force?

• If the policy lapses i.e., the insured has not paid the policy amount before the grace period expires, then it is termed as the policy, not in force. The insured is not covered by the policy when it is termed as the policy, not in force.

What is Gratuity?

• Gratuity is a part of the salary that is received by an employee from his/her employer in gratitude for the services offered by the employee in the company.
• According to Payments of Gratuity Act, 1972 with the minimum of 5 years service during exit is eligible to a minimum of 15 days from the last drawn salary for each completed service year.