In the present case does the loss of policy document absolve the insurer from the liability of payment of policy proceeds ? Is there any way to resolve the loss of document and what is the procedure ?

No, the claim can be settled on the claimants, furnishing an indemnity bond jointly with one surety. If a policy is irrevocably lost, a duplicate policy can be issued, after following a certain procedure. The insurer satisfies itself of the circumstances leading to loss. Being so satisfied the insurer insists upon an advertisement in a newspaper, production of an indemnity bond and payment of policy preparation charges and there after a Duplicate Policy is issued with a Stamp "Duplicate Policy". An outline of how to resolve the loss of a policy document and the procedure involved: Inform the Insurance Company: The first step is to inform the insurance company about the loss of the policy document. The policyholder or the nominee should provide details such as the policy number, name of the policyholder, and other relevant information to identify the policy. Application for Duplicate Policy: The policyholder or the nominee will need to apply for a duplicate policy document. This usually involves filling out a specific form provided by the insurance company, often called a "Request for Duplicate Policy" form. The form may require the following information: Policy number, Name of the policyholder, Details of the lost policy, Circumstances under which the policy was lost, Indemnity Bond: The insurance company typically requires an indemnity bond to be executed by the policyholder or the nominee. An indemnity bond is a legal document that protects the insurer from any claims arising from the issuance of the duplicate policy. It essentially states that the policyholder will indemnify the insurer against any future claims if the original policy is found and misused. Fees and Charges: The insurance company may charge a nominal fee for issuing a duplicate policy document. This fee can vary between companies and policies. Issuance of Duplicate Policy Document: Once the insurance company receives the completed application, indemnity bond, proof of advertisement (if required), and the applicable fees, they will process the request. After verification, they will issue a duplicate policy document. Filing a Claim: If the policyholder has passed away and the nominee needs to file a claim without the original policy document, the nominee should: Notify the insurance company of the policyholder's death. Provide all required documents for claim processing, such as the death certificate, identity proof, and relationship proof with the deceased. Submit the application for a duplicate policy along with the claim form, if not already done. Legal and Practical Implications