Nepal is a highly popular destination for Indian tourists. Consequently, when flash floods struck the country on Wednesday, reports emerged that over 200 Indians were missing; currently, 178 Indians remain unaccounted for. This raises the question: if an Indian national dies in a disaster on foreign soil, will their family receive insurance benefits? Generally, under a term insurance policy, the sum assured is paid to the nominee upon the policyholder's death, provided the policy is active and the cause of death is covered under the policy terms. A term insurance claim is not automatically invalidated simply because the death occurred outside India. However, in cases of death abroad, the insurance company may require additional documentation and verification of the incident.
In the event of a death in Nepal, the most crucial document would be the death certificate issued by the local administration. Additionally, reports from the police or local authorities may be requested to confirm the cause of death. The nominee may need to submit the policy document, the deceased's identity proofs, the passport, their own identity proof, and bank account details to the insurance company. Verification or attestation of the death certificate issued abroad might also be required.
**What happens if the body is not found?**
In natural disasters, individuals often go missing, and their bodies are not recovered. In such situations, the process for settling a term insurance claim differs from that of a standard death claim. In India, the rule regarding a seven-year absence has long been the standard for legally declaring a missing person dead. However, in the wake of major natural disasters, the government or the insurance regulator may issue special guidelines. In such instances, the claim settlement process may vary based on official lists of missing persons, administrative records, and other available evidence.
Therefore, it cannot be assumed that the family of a person missing in a disaster must invariably wait seven years; if special relief measures are implemented, the claim could potentially be settled sooner. What the nominee should do immediately
If an Indian tourist goes missing in Nepal following a disaster, the family should first file a missing person report with the local police or administration. Subsequently, they should contact the Indian Embassy and the local authorities. The insurance company must also be informed of the incident immediately. The claims process can be initiated by submitting the FIR, missing person report, passport, and other available documents to the insurance company. If the government or the insurance regulator issues special guidelines regarding the disaster, the subsequent procedure will be conducted in accordance with them.
Situations where claim processing might face difficulties
The most crucial condition for a claim is that the policy must be active at the time of the incident. Issues may arise if the policy has lapsed due to non-payment of premiums. Additionally, the insurance company may investigate if it is discovered that incorrect information was provided or essential details were withheld at the time of purchasing the policy. Policy exclusions will also be taken into account. Therefore, in the event of a death caused by a natural disaster in Nepal, the nominee should file a claim in accordance with the policy terms and conditions and ensure all official documents are kept safe. The final decision will be made by the insurance company based on applicable regulations and the terms of the policy.
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