Can I use my father's bank account for my health insurance claim?

No. The IRDAI requires the payout to go to the policyholder's account only. Third-party bank details are generally rejected to prevent fraud.

What should I do if my bank merged and my IFSC changed?

Obtain a new cheque book or passbook with the updated IFSC. Using the old code will lead to NEFT failure and delays.

Is a blurred photo of a cheque acceptable for digital claims?

No. Insurers use automated systems to read bank details. Blurry photos lead to instant rejection and manual verification delays.

Can I submit a bank statement instead of a cancelled cheque?

Yes, provided the statement is an official PDF showing the bank's logo, your full name, and the account details clearly.

What happens if I make a typo in my account number?

The payment will bounce. It can take 7 to 14 days for the insurer to reconcile the failed transaction and ask for corrections.

Why is my name mismatch causing a payment delay?

Anti-money laundering rules require exact name matches. If your bank and policy names differ, the insurer cannot verify the recipient's identity.

NEFT & Bank Proofs: Why Cancelled Cheques Delay Insurance Payouts

Health Insurance

Term Insurance

Blogs

Claims

Tools

Partner with us

Health Insurance
- Explore Insurers
- Explore Insurance Plans
- Explore Insurance Types
Term Insurance
- Explore Insurers
Blogs
Claims
- Claim Stories
- Explore Insurers
Tools
- Explore Calculators

Partner with us

OneAssure

Blogs

Health Insurance Guides

NEFT and Bank Proofs: Why a Cancelled Cheque is Your Claim's Best Friend

Your claim is approved, but the money is stuck. Learn why bank proof errors are the silent killers of insurance payouts.

4 min read

OneAssure Team

April 05, 2026

Need advice tailored to you?

Looking for the right plan? You don't have to guess. Let us compare the fine print for you and give you an unbiased recommendation.

Need advice tailored to you?

Looking for the right plan? You don't have to guess. Let us compare the fine print for you and give you an unbiased recommendation.

The Last Mile Heartbreak

You fought with the hospital billing desk for hours. You submitted every single doctor note. Finally, the insurer sends a message saying your claim is approved. You wait for the money. Two days pass. Then five. Then ten. The money never arrives. You call the customer care only to hear that your NEFT failed. This happens to thousands of Indians every month. The culprit is almost always a tiny mistake in your bank proof. It is frustrating. It is avoidable.

The IRDAI Mandate: No More Physical Cheques

Gone are the days when an insurance company would mail you a physical cheque or a demand draft. The IRDAI has made it mandatory for all payouts to happen through electronic modes. This includes claim settlements, premium refunds, or maturity benefits. This rule exists to make payments faster and more secure. However, it also means the insurer needs 100 percent accurate bank data. A single digit error in your account number or an outdated IFSC code will stop the payment instantly. The system is automated. It does not think. It only matches data.

Why They Want a Cancelled Cheque

You might wonder why you cannot just type your account number and IFSC into a form. Why the obsession with a cancelled cheque? It is about fraud prevention. A cheque is a legal document issued by your bank. It carries three vital pieces of information that must match perfectly: your name, your account number, and the MICR or IFSC code. If you just type the numbers, a typo is easy. If you upload a cheque, the insurer can verify that the account actually belongs to the person who owns the policy. It ensures the money goes to you and not a scammer. At OneAssure, we often see that providing a clear cheque at the start makes the eventual claim process much smoother.

The Merged Bank Trap

India has seen massive bank mergers in the last few years. If you were an Allahabad Bank customer, you are now with Indian Bank. If you were with Oriental Bank of Commerce, you are now with PNB. Your old cheque book might still be in your drawer. Do not use it. The IFSC codes for these merged entities have changed. If you provide an old IFSC, the NEFT will bounce. The insurer's system will flag it as a failed transaction. It can take weeks for the money to be reconciled manually. Always check your latest mobile banking app to confirm your current IFSC before submitting proofs.

How to Cross Your Cheque Correctly

People often get over-enthusiastic when cancelling a cheque. They draw huge lines across the paper. Sometimes, these lines cover the MICR code at the bottom or the IFSC code at the top. This makes the cheque useless. The scanner used by the insurance company cannot read the details. To do it right, draw two parallel lines across the top left corner and write CANCELLED between them. Do not scribble over your name or the account number. Clear visibility is the only thing that matters here. Avoid blurry mobile photos. If the text is grainy, the automated verification system will reject it immediately. Use a scanning app or ensure you have bright, direct light when taking the photo.

What if You Do Not Have a Cheque Book?

Not everyone uses cheques today. If you lack a cheque book, you have two valid alternatives. You can use a copy of your bank passbook. It must show the first page with your photo, name, account number, and the bank branch stamp. Alternatively, you can use a digital bank statement. But there is a catch. A plain excel sheet or a text-only download will not work. The statement must be an official PDF that shows the bank logo and your full name. If your name on the bank record is Amit Kumar but your insurance policy says Amit K. Singh, the payment will stall. Your KYC records across the bank and the insurer must be an exact match.

The Risk of Inactive Accounts

Insurance claims often happen years after you buy a policy. In that time, you might have stopped using the bank account you originally registered. If an account is inactive or frozen due to lack of KYC updates, the NEFT will fail. The bank will send the money back to the insurer. This triggers a long loop of paperwork. You will have to submit a fresh NEFT mandate, a new bank proof, and a written request to re-initiate the payment. Check your bank status today. It takes two minutes but saves weeks of headache later.