| The recent re-appearance of canoeist John Darwin, | | | | insurers are in agreement that any of the following |
| who had been presumed dead after the coastguard | | | | would apply in cases where payouts for life assurance |
| failed to find any trace of him in the sea five years | | | | with no body recovered are being considered: |
| ago, has prompted many questions about his | | | | - If the likely age of human survival has been crossed |
| whereabouts in that period, as well as a very | | | | by the insured |
| interesting one for the UK life insurance industry; what | | | | - If the possibilities of the insured being in any danger |
| happens if you pay out a claim on someone who | | | | were high |
| comes back from the dead? | | | | - If the insured had a terminal illness or was suffering |
| There is no indication in this case whether Mrs. Darwin | | | | from deteriorating health status at the time of the |
| has been the beneficiary of any life insurance payout, | | | | disappearance |
| so the question is merely rhetorical. However, before | | | | - If the actions of the disappeared insured are totally |
| finding out whether any refund would be required we | | | | inconsistent with their behaviour |
| must first look at how someone is declared dead, in | | | | So, back to the main question: what happens if a |
| order for the payout to be made in the first place. | | | | beneficiary has received a payout under a life |
| A spokesman from the Association of British Insurers | | | | insurance policy for a missing person, and they |
| confirmed that a missing person would be declared | | | | subsequently turn up alive? Well, the answer is not that |
| officially dead seven years after going missing. But, | | | | simple. According to an Association of British Insurers' |
| where there is 'compelling circumstantial evidence' of | | | | spokesman, it is down to the discretion of the individual |
| suspected death, relatives can apply to the courts | | | | life insurance company as to whether they pursue the |
| earlier to have the missing person declared dead. In | | | | beneficiary of the claim for the recovery of any |
| addition, life insurance companies can choose to pay | | | | payout in cases when the insured subsequently turns |
| out earlier than the statutory seven years if they | | | | up alive. Only in cases of clear foul play, or where |
| choose, even in cases where a body has not been | | | | fraud is suspected or proven, would they would seek |
| recovered, and without the need for any court action. | | | | to recover the insured sum, but in other cases the |
| Although there is no uniform agreement as to what | | | | money could be written off as an insured loss. |
| constitutes 'compelling circumstantial evidence', most | | | | |