What is claim ?
A claim is demand for performance of promise made by the insurer (insurance company) while entering into the contract of insurance.
What is a Maturity Claim ?
Under Endowment type of policies the insurer has to settle the amount due to customer (claim) on the date of Maturity i.e. the claim is to be settled after the selected term on the maturity date.
What is Death Claim ?
Settlement is to be done in respect a claim arising out of death of the life assured during the selected (under endowment type of policy) Term of the policy, to the nominee/assignee/legal heirs. This is called death claim. A claim preferred by the beneficiary on the death of life assured.
What is "Early claim" and what is "Very early claim" ?
Death claims occurring within 2 years from the date of commencement of the policy, or from the date of revival of the policy is called "Very Early Claim". Death claims occurring and between 2 to 3 years from the date of commencement of policy or from the date of revival is classified as "Early claim". In all cases of early claims and very early claims, investigation will be done by the insurer to make sure that the claim is genuine.
Whether the claim amount received under an insurance policy taxable ?
No . Maturity claim/Death claim amounts under an insurance policy including the bonuses are non-taxable as per subsection 10(D) of Section 10 of I.T. Act.
Will the Maturity proceeds of an insurance policyare subject to capital gains tax?
No. The maturity proceeds under an insurance policy are not subject to capital gains tax.
