The Department of Posts (DOP) in India has issued new guidelines for the prompt settlement of claim applications for the deceased, citing the fact that post offices are not adhering to prescribed procedures and deadlines. The DOP has instructed post offices to ensure the timely settlement of deceased claim cases and has educated head post offices and sub-post offices on the importance of adhering to the guidelines for timely settlement of such cases.
At the time of receiving the KYC documents or the deceased claim documents, the claimant’s KYC documents must be verified with the original documents, per the guidelines. The physical presence of witnesses is not required if their signatures appear on a copy of the KYC documents. Claimants must be educated on the importance of providing their bank account or post office savings account information when submitting deceased claim cases for payment transfer. To settle death claim cases, the sub-post office or head post office is not required to issue a separate authorization memo; instead, it can authorise the claim on Form 11 on the second part designated as “For Office Use Only.” When a deceased claim case is received with complete documents, additional verification through SDI (P) or PRI (P) is not required.
In the event that a nomination is registered in a small savings scheme held by a post office, and that nomination is in effect at the time of the individual’s death, the respective post office must pay the amount to the nominee, regardless of the claim amount, and without the production of legal evidence.
The guidelines have been issued to streamline and expedite the process of settling deceased claims, which has been reported to lack efficiency and timeline adherence. The DOP has instructed post offices to adhere to the guidelines with greater vigilance to ensure prompt settlement of deceased claim cases. The sensitization of post offices and their employees to adhere to the guidelines is anticipated to increase the process’s efficiency and transparency.
Many who have encountered delays and difficulties in settling claims for the deceased have applauded the initiative. The new guidelines are anticipated to provide claimants, nominees, and post offices with greater process clarity and simplicity, to their mutual benefit. The DOP has urged post offices to immediately implement the guidelines in order to expedite and optimise the settlement of deceased claim cases.
The Indian Postal Service has issued instructions for the settlement of claims on deceased depositors’ savings accounts. In the absence of a nominee, the scheme’s claim will go to the legal heirs of the last deceased nominee, according to the guidelines.
If the final claim amount is less than Rs 5 lakh and there is no legal evidence, the legal successor may file a claim six months after the depositor’s death with the following documents: the depositor’s death certificate, original deposit receipt, statement of account, or passbook, an affidavit, letter of disclaimer, and bond of indemnity.
However, if the claim amount exceeds Rs 5 lakh, the accounts office should only pay the amount to the claimant upon submission of a court-issued succession certificate and other required documents, including a claim form and the account holder’s death certificate.
The circular issued by the Department of Posts on November 6, 2020, also states that if the eligible amount in a deceased account exceeds Rs. 5 lakh and no nomination or legal evidence is available, the amount will be paid to the claimant upon submission of a court-issued “Successorship Certificate.”
If there is no nomination in the plan, the Post Office will refund up to Rs. 5 lakh six months after the decedent’s death. Claiming the amount requires submitting a claim form and a death certificate.
According to the circular, upon receipt of the claim, either directly or via Insured Post, the post office where the account resides will issue an acknowledgment to the claimant on the same day. The claim case must be resolved within one business day when a nomination exists, and within seven business days otherwise if it falls under the Post Office’s financial authority. If the claim exceeds the financial authority, it must be forwarded to the authorising authority via service mail on the day of receipt. The divisional office will process the claim within seven business days of receiving it.
The purpose of these guidelines is to streamline the process of settling claims and ensure that legal heirs receive the money owed to them in a timely manner. It also encourages individuals to appoint a successor to their account in order to prevent any confusion or delay in the settlement of claims following their death.