TRINITY INSTITUTE OF PROFESSIONAL STUDIES

Sector – 9, Dwarka Institutional Area, New Delhi-75Affiliated Institution of G.G.S.IP.U, Delhi

BBA (B&I)Practices of Life

Insurance (18305)

Life Insurance- Procedure & Decuments

By: Ratika Malhotra

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Documents

The contract is entered into by two or more people under Indian contract act.

For life insurance various documents are required when a person takes insurance and also through out the tenure of the policy.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

List of Documents

1. Proposal Form2. First Premium Receipt3. Policy Bond4. Renewal Premium Receipt5. Renewal Premium Notice6. Bonus Notice7. Claim Settlement Form

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

The first document in insurance is the proposal and is treated as the basis of the contract.

Proposal from include the following details:• Identity of proposal • Previous policy• Family history• Occupation• Income

•Previous Policies•Choice of plan•Term•Sum Assured•Mode of premium

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

First Premium Receipt (FPR)

FPR is issued after the underwriter gives the decision of acceptance. FPR gives the date of decision.

FPR will give the date of commencement of the risk.FPR does not give the terms of the contract.FPR also is helpful to create the policy master. Once the

FPR is issued the insurer is bound by his decision till the date of claim.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Policy BondIt is the evidence of contract. The policy has many parts:a) Headingb) Preamblec) Operative Claused) Provisoe) Schedulef) Conditions & Priviledgesg) Attestationh) Any Endorsement

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Renewal Premium Receipt

• This receipt confirm that the insurance cover is continued for a further period.

• All life insurance contract are for long time and insured have the option to pay the premium on a selected frequency.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Renewal Premium Notice

• Once the policy is issued , policyholder is required to pay premium as and when they fall due. No reminder would be necessary.

• However the insurer may send notice to remind him that the premium has fallen due.

• There is no legal obligation to issue the renewal notice. However as a matter of courtesy, the notice is issued.

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Claim settlement is one of the most important services that an insurance company can provide to its customers. Insurance companies have an obligation to settle claims promptly. Documents that need to be submitted are:

• Policy number.• Date & Time of loss• Reason of Loss• Death Certificate (for death claim)• Age Proof• Deed of Assignment (if any)• Evidence of Title• FIR • Post Mortem Report

TRINITY INSTITUTE OF PROFESSIONAL STUDIESSector – 9, Dwarka Institutional Area, New Delhi-75

Bonus Notice

• The bonus notice is issued to inform about the amount of bonus vested in the policy as on the date of valuation on condition that the premium is paid till the date of valuation.

• Notice of bonus may not be issued for all the policyholders due to shortage of time and money.

• Publicity is given in the newspaper also.• Another method is to show the bonus vested in the renewal

premium notice itself.