Death claim : Your Complete Guide to Deceased Claim Settlement in India

Deceased Claim Settlement : Introduction

The loss of a loved one is incredibly sad, and the entire family experiences emotional difficulty during this time. The family’s financial status also suffered during this difficult time. Family members do not currently have the mental capacity to deal with the tedious paperwork and bank death claim procedures.

In this post, we’ll outline the procedure and understand the Death Claim Process while taking into account different contingencies like Death claim Settlement with Nominations, Death claim settlement without Nominations, and Death claim settlement for Lockers etc. We will talk about the Documents required for Deceased claim settlement and How to fill an application for deceased claim. Additionally, we will understand the procedures used by major banks and financial institutions in India.

Understanding How Many Accounts the Deceased Held

Before proceeding with a death claim settlement at a bank or financial institution, it is essential to gather information about the deceased person’s accounts. Here are some steps to follow:

Thoroughly examine the belongings: Spend some time looking over each and every item the person left behind. Check his wallet or purse for stuff like ATM cards, loan papers, insurance papers, or any bank statements. These material possessions can offer insightful hints about their financial affairs.

Access the deceased’s email and text messages: Examine any emails or SMS messages the deceased individual sent or received if you have access to them. This may provide information regarding communications with financial institutions. To find the names of pertinent entities, look for emails or letters from banks or other financial organisations.

You can learn vital details about the financial organisations where the deceased person had accounts or made other financial transactions by attentively carrying out these tasks. When beginning the settlement of a death claim, this information will be quite helpful.

Documents Required for Deceased claim settlement:

Essential documents

1. Original Death Certificate of deceased person : Death certificate is the most essential document required to process deceased claim. Death certificate must be  issued by Government authority. For urban areas, death certificates are issued by Municipal corporations and  for Rural areas this certificate is issued by Gram Panchayat.
2. Details of deceased Bank accounts, FDs, lockers, etc. to easily process the claim.

By using the deceased’s PAN, mobile number, and DOB, Bank person can easily find any other relationship of the deceased with the bank.

3. Photograph and KYC of all claimant(s)/ legal heirs: One passport size photo along with Adhaar/ Passport/ Driving licence/ Voter ID card, etc. are required for ID and Address proof.
4. Relationship proof: In some scenarios, where nominations are not available with the bank. In those cases, relationship proof like a marriage certificate or legal heir certificate is required.
5. Bank Forms & Annexure :  Some more Annexures and documents like Letter of Disclaimer, Letter of Indemnity also required for claim settlement. 

Format of these Annexures and Letters vary from Bank to Bank. Also these requirements may differ as per the case to case basis.(Mainly type of account and nominee availability in the account)

These details are mentioned in the specific Bank section later on this article.

6. Two witnesses with ID and Address proof : It is required in No nomination cases, also process varies from Bank to Bank.

Death claim settlement process  & Different Scenarios related to Deceased claim settlement : 

Deceased claim with Nomination : In the cases where valid Nomination is available in the bank record. Post submission of the required documents. Bank will settle the claim and the balance outstanding in the account will be paid to the nominee.

Point to be noted here is that the Nominee who is receiving the payment from the bank is a trustee of the legal heir of the deceased depositor. Such payment to him will not affect the right or claim which any person may have against the nominee to whom the payment is made.

Documents required : 

• Application Form signed by Nominee
• Death Certificate, 
• KYC of the claimant, 
• Bank annexures and format : Letter of disclaimer (notarized) 
• Letter of Indemnity. (available on Bank websites).

Time limit for Death claim settlement with Nomination : Post submission of all the documents in the bank, Bank will settle the claim within a period not exceeding 15 days.

Deceased claim without nomination : In the case where no nomination is available in the account. Claim settlement process becomes slightly complex. 

In this case settlement will be done to the Legal Heirs of the deceased person. 

Establishment of Legal Heir will be on the basis of either 

Legal Heir certificate issued by District court or District Magistrate.

Or

Probate Will : It is a copy of the will that has been lawfully executed and has the authority to be followed, and it has been certified under the seal of the court with appropriate jurisdiction. It is the legal procedure/court order that settles all claims and distributes the deceased person’s property in accordance with a valid Will. The bank will carry out the court or probate order.

Or 

Succession Certificate issued by court.

However as per the directive of RBI for claims of deposits or any credit balance or any other asset of the deceased irrespective of amount, banks should not insist on Legal Representation. In that case only a Legal Heir Certificate is enough for processing of the claim.

Document required for Death claim settlement No nomination cases : 

• Application form duly signed by all legal Heirs.
• Death Certificate
• Photograph and KYC of all legal heirs.
• Letter of disclaimer (notarized) 
• Letter of Indemnity.

Time limit for Death claim settlement with No Nomination : Post submission of all the documents in the bank, Bank will settle the claim within a period not exceeding 30 days.

Deceased claim for Locker with Nomination: Upon identification and verification of the proof of death of the locker hirer, the nominee will be granted access to the locker. Before allowing the nominee to remove the contents, the bank will create an inventory of the items in the presence of the nominee(s) and two independent witnesses. 

Documents required : 

• Application Form signed by Nominee
• Death Certificate, 
• KYC of the claimant, 
• Bank annexures and format : Letter of disclaimer (notarized) 
• Letter of Indemnity. (available on Bank websites).

Deceased claim for Locker without Nomination: In the absence of a nominee, the legal heir(s) of the deceased locker hirer or a person authorised by the legal heir(s) will be permitted to access the locker and retrieve the contents.

Before granting access to the legal heir(s) to remove the contents of the Safe Deposit Locker, the bank will create an inventory of the articles in the presence of the legal heir(s)/mandate holder and two independent witnesses.

Document required : 

• Application form duly signed by all legal Heirs.
• Death Certificate
• Photograph and KYC of all legal heirs.
• Letter of disclaimer (notarized) 
• Letter of Indemnity.

Deceased claim for Demat : To initiate the Death claim settlement in Demat Account the claimant must submit a claim through the Depository Participant (DP) where the deceased person held the Demat account.

Deceased claim in Demat account with Nomination:

If there is Nomination available in the single holder Demat Account, transmission process is relatively straightforward. The nominee need to submit below mentioned documents in DP (Depository Participants).

Documents required for death claim in Demat account with Nomination :

Transmission Request Form: This form contains essential details about the customer, nominee, and the assets to be transferred from the demat account. You can obtain the form from your depository participant’s website (DP).

Death Certificate: A notarized or Gazetted Officer-certified copy of the deceased account holder’s death certificate.

KYC of nominee

CMR report of nominee : The Client Master report is a document that contains detailed information of Demat account, available securities and Bank account details. CMR report can be downloaded from DP’s trading website.

Death claim in Demat account with No Nomination :

If a single holder demat account does not have nomination, securities will be transferred to the legal heirs (as established by competent court ruling) of the deceased.

Documents required for death claim in Demat account with No Nomination :

1. Letter of indemnity : A letter of indemnity is a formal declaration that the person mentioned therein is the rightful successor of a decedent.
2. Affidavit : A non-judicial stamp paper affidavit stating that the applicant is the legally recognised successor of the deceased and is therefore entitled to the assets in the demat account may also be used.
3. No objection certificate : If there are many legal heirs, and one of them is claimant, in this case NOC from other legal heirs are required to settle the claim. An authenticated copy of a family settlement deed can be used instead of a NOC.
4. Original Death certificate
5. CMR of the person who will receive the securities.

Death claim in Joint demat account :

For a jointly held Demat account, securities will be transferred to the separate Demat account of the survivor.

Documents required in death claim settlement in joint demat account :

1. Transmission Request Form: This form contains essential details about the customer, nominee, and the assets to be transferred from the demat account. You can obtain the form from your depository participant’s website (DP).

2. Death Certificate: A notarized or Gazetted Officer-certified copy of the deceased account holder’s death certificate.

3. KYC of nominee

4. CMR report of nominee : The Client Master report is a document that contains detailed information of Demat account, available securities and Bank account details. CMR report can be downloaded from DP’s trading website.

Deceased claim for HUF : In HUF account if KARTA of the account is no more, The next senior most coparcener can become KARTA. Bank account remains the same in this case.

The Karta, who has exclusive authority over the HUF account and all transactions made on behalf of the family members, needs to be replaced with a new Karta following the demise of the previous Karta. To facilitate further operations in the account, it is crucial to appoint a new Karta.

Upon the expiration of the Karta, the bank account remains unchanged, provided that a declaration cum no objection letter is submitted to the bank by the new Karta and coparceners. This letter should include the following details:

• 1. A request to remove the name of the deceased Karta from the bank’s record (specifying the account type and number) along with a copy of the death certificate.
• The name of the newly appointed Karta and his relationship with the deceased Karta.
• 2. A request to update the name of the new Karta for the specified HUF account, replacing the deceased Karta, and granting him the authority to operate the HUF account.
• 3. Confirmation of no objection to the appointment of (Name of the member) as the new Karta of the HUF account.
• 4. The declaration cum no objection letter, signed by the new Karta and all major co-parceners of the family, regarding the deletion of the existing Karta’s name and the appointment of the new Karta.

In the case of a substantial balance in the HUF account, some banks may require an affidavit cum indemnity from surviving members and legal heirs, along with two guarantors, confirming their acceptance of a specific member as the new Karta. Based on such documents, banks will allow the new Karta to continue operating the existing account. A similar procedure should be followed if the account is to be closed and the balance paid to the new Karta. Please note that document requirements may vary among different banks.

Deceased claim for missing person : Claims for missing persons are governed by Section 107/108 of the Indian Evidence Act. Section 108 allows presumption of death after seven years of being reported missing. Nominees/legal heirs must establish this presumption in court. Settlements within the threshold limit (different for every bank) can be made without a court order. Required documents include an FIR, non-traceable report from the police, and an indemnity letter with two sureties. For claims above the threshold, a court declaration is needed. Branch officials should conduct inquiries and report findings.

(For complete details please go through the article)

Sample of Death Claim Application form

To

The Branch Manager

____________ Bank

____________ Branch

City -_________

State –

Subject : Request for Settlement of Account due to Demise of Account Holder

Dear Sir/Madam,

I am writing to inform you about the unfortunate demise of my [relation], Mr./Mrs./Ms. [XYZ], who was an account holder with your esteemed bank. I kindly request your assistance in processing the settlement of their account as per the applicable procedures and guidelines.

Below are the details of the account and the necessary information for your reference:

Account Holder Name: [XYZ] 

Account Number: [Account Number] 

Account Type: [Specify the Account Type, e.g., Savings/Current] 

Date of Death: [Date of Demise]

I have enclosed the following documents with the letter

1. Death Certificate
2. KYC of Claimant

I kindly request you to consider these documents as sufficient evidence of the demise of the account holder and proceed with the settlement process accordingly. If there are any additional documents or formalities required from my end, please let me know, and I will promptly provide them.

Thanks & Regards

Name

Address

Contact Number : 

FAQ – Death Claim Settlement – Bank Assist India

“How Bank Assist India Can Help You in Deceased Claim Settlement?

In this article, we have covered all the important points and possible scenarios related to death claim settlement. If you have any further doubts or specific queries related to your case, you can contact the Bank Assist India Team. Our expert team will guide you through every aspect related to a successful claim.” : CONTACT BANK ASSIST INDIA