Proposal form: is a standardized form. The proposer who
decides to take the life insurance policy makes the proposal through this form.
The forms provide the relevant date for the purpose of assessment of risk. Information
must be given correctly and clearly in the proposal form. The insured is
required to give two references and the form contains information like name,
nationality, occupation, age, family background health, etc. It acts as the base
of insurance contract.
Submission of proof of age and medical report: Insurance
premiums are worked out on the basis of age at entry. So, the insurer insists
on submission of proof of age with the proposal form.
The medical examination report is obtained in cases depending
on the age and the sum insured. This report can be obtained on medical examination
by an approved doctor of the insurance company and is a confidential report.
Scrutiny & Proposal Acceptance: The officers of the
company examine the proposal form and the medical reports and then make the
acceptance decision. The rate of premium is taken on the basis of the reports
and the decision is communicated to the individual who has to pay the first
premium immediately. In some cases, the premiums is paid along with the
proposal form and the amount is kept as deposit till the proposal is accepted.
Payment of first premium and issue of policy: on receipt of
the first premium and after examining the proposal form, the policy document is
issued. A policy document is proof of contract. It mentions conditions of the contract
and rights of the policy holder. The policy holder keeps the policy in/under
his custody.
No comments:
Post a Comment