Ex Gratia claim

When a policy has not acquired paid up value and claim concession rules are not applicable, nothing is payable in case of death. However some insurers relax the rules in favour of the claimant.

If the premiums have been paid for more than 2 years and

• the death occurs within three months from the first unpaid premium, full sum assured with bonus, if any, is payable;
• if the death occurs after 3 months, but within 6 months, half the sum assured is paid;
• if the death occurs within one year from first unpaid premium, notional paid up value is paid.

Under the first condition, the unpaid premium with interest for the policy year of death will be deducted from the claim and no deduction is made in the other two conditions.