Does the Policyholder Receive an Insurance Refund if the Insured Dies by Suicide?
Clause 1, Article 39 of the Law on Insurance Business 2000 stipulates:
- The insurance enterprise is not obligated to pay insurance money in the following cases:
+ The insured person dies due to suicide within a period of two years from the date of paying the first insurance premium or from the date the insurance contract becomes effective again;
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According to this provision, in the case where the insured person dies due to suicide within the aforementioned two-year period, the insurer will not pay the insurance money.
However, in Clause 3 of this Article, it is also stipulated:
In the cases specified in Clause 1 of this Article, the insurer must pay the policyholder the surrender value of the insurance contract or the total paid insurance premiums after deducting reasonable related expenses; if the policyholder dies, the refund amount is settled according to the laws on inheritance.
Thus, in the case where the insured person dies due to suicide, although the insurance money is not paid, the policyholder will be refunded by the insurer either the surrender value of the insurance contract or the total paid insurance premiums after deducting reasonable related expenses.
Sincerely!
