LIC Maturity Claim: Step-by-Step Process to Get Your Money

When your LIC policy matures, the process of receiving the payment is simpler than most people expect — but knowing the exact steps in advance saves unnecessary delays. I have guided hundreds of clients through this process in Gorakhpur.

**When does LIC send the maturity intimation**

LIC typically sends a maturity intimation letter to your registered address 2 to 3 months before the maturity date. This letter includes the policy number, maturity date, and the estimated maturity amount.

If you have not received this letter, do not wait — contact your servicing branch directly or check through LIC's online portal.

**Documents you need to submit**

1. Duly filled discharge voucher (Form 3825). LIC sends this with the intimation letter. If you lost it, your branch can provide a fresh copy. 2. Original policy bond. This is the original document LIC gave you when the policy was issued. If you have lost it, you must submit a specific indemnity bond along with a police complaint affidavit. 3. Identity proof and address proof (self-attested copies). 4. NEFT mandate form with a cancelled cheque or bank passbook copy for direct bank transfer. 5. A revenue stamp and your signature on the discharge voucher.

**Step-by-step process**

Step 1: Collect all documents listed above. Sign the discharge voucher in the presence of a witness (a gazetted officer or your LIC agent).

Step 2: Submit the documents at your servicing LIC branch. If you prefer, submit them online through LIC's policyholder portal (licindia.in). Online submission requires scanning and uploading the signed documents.

Step 3: LIC verifies the documents. If everything is in order, the maturity amount is credited to your NEFT bank account within 30 days of document submission. In practice, I have seen it credited within 15 to 20 days in most cases.

**What if the original policy bond is missing**

This happens more often than you would think. The solution is to submit a notarized indemnity bond on stamp paper declaring that you are the legitimate policyholder, that the original bond is lost, and that you hold LIC harmless in case the original is found and presented by someone else.

Your LIC branch can give you the exact format. Do not try to draft this yourself — use the branch-provided format to avoid any rejection.

**Tax on maturity amount**

The maturity amount is tax-free under Section 10(10D) provided the Sum Assured is at least 10 times the annual premium for policies issued after April 1, 2012. If this condition is not met, the maturity gain is added to your income and taxed at your applicable slab rate.

**What if the LIC branch delays payment**

LIC has a service standard of 30 days for maturity claims. If the payment is not credited within 30 days of your document submission, you can send a written complaint to the branch manager and escalate to LIC's Grievance Redressal Cell if needed. You are also entitled to interest on the delayed payment under IRDAI regulations.

If you have a policy maturing soon and want someone to help you through the paperwork, call me at 9415313434. I accompany my clients to the branch if needed.