The LIC maturity claim form 3825 is a one-page discharge voucher you sign to collect the maturity proceeds of a Life Insurance Corporation of India endowment policy. Signing it confirms you received the full payout — sum assured plus any declared bonuses — and releases LIC from further obligations under that policy. Your servicing branch mails you an advance intimation at least two months before the maturity date, and you should return the signed form with your original policy bond and supporting documents at least one month before the due date so the money reaches you on time.1Life Insurance Corporation of India. Claims Settlement Requirements
How the Form Reaches You
You don’t have to request Form 3825. The branch that services your policy sends a letter telling you when the maturity amount becomes payable, and that letter goes out at least two months ahead of the due date.1Life Insurance Corporation of India. Claims Settlement Requirements It usually includes the discharge form (or instructions on where to download it) and a checklist of documents to return. If the letter never arrives, contact the servicing branch or download the form from LIC’s website under the maturity claims section.2Life Insurance Corporation of India. Download Forms
What You Fill In
The form has three parts. The top is a pre-printed acknowledgment confirming you received the maturity amount “in full and final satisfaction and discharge of all claims and demands” under the policy, with your agreement to hand the original policy document back to LIC for cancellation.3Life Insurance Corporation of India. Form No. 3825 – Discharge of Matured Policy You enter your name, the policy number, and the maturity date here.
The middle section is a claim calculation that the branch office normally fills in. It lists:
- Sum assured or paid-up value, the base amount payable under the policy.
- Bonus allotted, meaning reversionary bonuses declared over the policy’s life.
- Interim bonus for the period between the last valuation and maturity.
- Deductions for unpaid premium installments, late fees, outstanding policy loans and interest, and any adjustment for age misstatement.
- Net claim amount, which is what you actually receive.
The bottom section handles payment. The standard form offers payment by crossed cheque, with an option to request a money order or demand draft at your own cost.3Life Insurance Corporation of India. Form No. 3825 – Discharge of Matured Policy If joint holders or assignees have a claim on the policy, a “note of authority” section lets all parties authorize payment to one person, witnessed by at least two people.
The NEFT Mandate for Direct Credit
Most policyholders now receive the payout by direct bank transfer, which LIC handles through a separate NEFT mandate form rather than a section of Form 3825 itself. The NEFT form asks for your bank account number, the name of your bank and branch, and the branch’s IFSC code. Return it along with the discharge voucher and bank proof.1Life Insurance Corporation of India. Claims Settlement Requirements
Check the IFSC code against your bank passbook or the Reserve Bank of India’s online directory. A wrong code is one of the most common reasons electronic transfers bounce, and fixing it after submission adds weeks. The account name should match the policyholder’s name.
Documents to Attach
Along with the signed form and NEFT mandate, send:
- The original policy bond. LIC requires it because it represents legal title to the proceeds, and the bond is cancelled once payment is made.3Life Insurance Corporation of India. Form No. 3825 – Discharge of Matured Policy
- KYC documents: a government-issued photo ID (Aadhaar card, passport, voter ID, or PAN card) and proof of current address.1Life Insurance Corporation of India. Claims Settlement Requirements
- Bank account proof: a cancelled cheque or a photocopy of the first page of your passbook, confirming the account number and IFSC code on the NEFT mandate.
Submit everything as one packet. A missing item counts as an incomplete submission, and processing doesn’t begin until the last document arrives.
If the Original Policy Bond Is Lost
You need a duplicate bond before LIC will process the maturity claim. The process involves submitting Form 3756, an indemnity bond printed on non-judicial stamp paper (typically Rs. 100). Fill in your name and policy number, have two witnesses sign, and get it notarized. LIC also requires you to publish a notice in a widely circulated newspaper (English or local language) and wait one month for objections before submitting a copy of the advertisement to the branch.
The fee for a duplicate bond is Rs. 75 plus Rs. 0.20 per thousand of the sum assured, with 18% GST on top. Start early. The newspaper advertisement alone takes at least a month, and the branch still needs time to issue the duplicate before releasing the maturity payment.
Where and When to Submit
Send the packet to the branch that services your policy. This is usually the branch where the policy was originally purchased, though servicing may have been transferred over the years. The servicing branch code appears on LIC’s website and on your premium receipts.
Timing matters. LIC’s own guidance says to submit the discharge form and original policy document at least one month before the maturity due date so payment is processed and credited on time.2Life Insurance Corporation of India. Download Forms Since the advance intimation goes out two months in advance, you effectively have about a month to gather documents and deliver the packet. Ask for a written acknowledgment receipt when you submit; that’s your proof the original bond and signed voucher are in LIC’s custody.
When the Payment Arrives
If everything is submitted on time, LIC processes the payment in advance so the maturity amount reaches your bank account on the due date.1Life Insurance Corporation of India. Claims Settlement Requirements Documents turned in after the maturity date mean a later payout while the branch works through the claim.
Under IRDAI’s Protection of Policyholders’ Interests Regulations, insurers must settle claims within 30 days of receiving the last necessary document. If LIC pays beyond that window, you may be entitled to penal interest. Insurance Ombudsman decisions in past cases have awarded interest in the range of 7 to 8 percent per annum on delayed maturity payments.4Life Insurance Corporation of India. Maturity Claim An unreasonable delay can be escalated by filing a complaint with the Insurance Ombudsman in your jurisdiction.
Extra Steps if You Live in the United States
LIC pays maturity claims in Indian rupees only, regardless of where you live, and the payment goes to an Indian bank account.5Life Insurance Corporation of India. NRI Corner Moving the funds to the US means a transfer from your NRO account, currency conversion charges, and an incoming wire fee that runs around $25 at major US banks for personal accounts. Keep the servicing branch updated on your NRI status and current address through LIC’s NRI questionnaire form.
India is a member of the Hague Apostille Convention, so if your LIC branch asks for notarized documents, a US notary public can notarize them and your state’s Secretary of State can apostille them.6Ministry of External Affairs Government of India. Attestation/Apostille The nearest Indian consulate or embassy can also attest documents directly.
Tax Withheld in India
India withholds tax at source on the taxable portion of life insurance maturity proceeds under Section 194DA of the Income Tax Act. The TDS rate is 2 percent, applied only to the amount exceeding the total premiums you paid, not the whole payout. If LIC does not have your PAN on file, the rate rises to 20 percent, so make sure your PAN is on record before maturity.
US Federal Income Tax
The IRS treats a life insurance maturity payout as taxable to the extent the proceeds exceed your “investment in the contract,” meaning the total premiums you paid over the policy’s life. Under 26 U.S.C. § 72, the gain is included in gross income as ordinary income.7Office of the Law Revision Counsel. 26 US Code 72 – Annuities; Certain Proceeds of Endowment and Life Insurance Contracts If India withheld TDS on the same income, you can generally claim a foreign tax credit on Form 1116 to offset the US tax, provided the foreign tax qualifies as an income tax.8Internal Revenue Service. Foreign Tax Credit
Foreign Asset Reporting
US persons holding a foreign life insurance policy with cash surrender value have two possible reporting obligations:
- FBAR (FinCEN Form 114): required if the aggregate value of your foreign financial accounts, including the cash value of a foreign life insurance policy, exceeds $10,000 at any point during the calendar year.9Internal Revenue Service. Comparison of Form 8938 and FBAR Requirements
- Form 8938 (FATCA): required for an unmarried US-resident filer when specified foreign financial assets exceed $50,000 on the last day of the tax year or $75,000 at any time during the year. Married couples filing jointly have higher thresholds.10Internal Revenue Service. Do I Need to File Form 8938, Statement of Specified Foreign Financial Assets
These obligations apply during the years you hold the policy, not only at maturity. Once LIC pays out and the policy closes, the asset drops off future filings, but the year of the payout still requires reporting if thresholds are met. Penalties for failing to file either form are steep, so consult a tax professional familiar with foreign financial assets if you’re unsure whether your LIC policy triggers them.