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Documentation is important in life insurancebusiness for the following reasons:

Identities of the persons concerned have to be

established correctly.Contract is for a long term.

Terms and conditions related to contract could beprovided only through relevant documents.

To substantiate the duties and rights of personsconcerned clearly.

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PROPOSAL FORM Most important and forms the basis of contract.

An offer and application for insurance.

Seeks information about name, address, occupation,date of birth etc.

Details about opted plan, sum proposed, riderbenefits, purpose of insurance, nominee, previousinsurance details etc.

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PROPOSAL FORM Should be filled by the proposer.

If the proposer is illiterate, some other person (other

than the advisor) should fill the form with adeclaration.

Can be signed in any language or else a thumbimpression with an attestation is required.

As per I R D A guidelines, a copy of the proposal formhas to be furnished to the policyholder within 30 daysof acceptance of the risk by the insurer.

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PERSONAL STATEMENT• Seeks details about family history, age, present state of

health of parents, and other family members.

•

Also elicits information regarding history of illness,accident, operation, present state of health and habits.

• Declaration at the end of the proposal form applies to

the information furnished in the personal statement

also.• This declaration makes the principle of utmost good

faith operational.

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AGENT’S CONFIDENTIAL REPORT Confidential Report given by the agent to the insurer.

To verify the statements made by the proposer in theproposal form.

To verify source of income, occupation, previousinsurance .

To find the recommendations made by the agent , whether to accept or decline the proposal.

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MEDICAL REPORT Medical examination done by an authorized doctor of

the insurer after perusing the personal statement.

Gives opinion about the present state of health of theproposer / life to be insured.

Agent’s/Advisor’s report and the Medical Examiner’sreport are confidential ; not made available to the

policyholder.

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The copy of the proposal and personal statement hasto be sent to the policy holder within 30 days of thecompletion of the contract.

Proof of age is required to determine the risk andcalculation of premium.

If the policy is under MWP Act, appropriateaddendum will be required.

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FIRST PREMIUM RECEIPT FPR date is the date of acceptance of risk and proof of

commencement of risk.

Risk cover can commence earlier to the FPR date due

to the provisions of backdating in Life Insurance. Dating-back of risk is allowed within the same

financial year.

FPR contains info like policy number, date of

commencement, date of maturity, plan, term, sumassured, mode of payment, terms of acceptance, nameand address of the insured, amount of premium,nominee etc.

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Policy Document

Policy document is not a contract but it is an evidence ofthe contract.

Signed by the competent authority and stamped accordingto the Indian Stamp Act.

Contains Heading, Preamble, Operative clause, Proviso,Schedule, Attestation, Terms and Conditions andEndorsements if any.

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Policy Document

In the case of Non-life insurance, full descriptionincluding locations of the property or interestinsured; perils covered and exclusions; sum insured;

period of cover etc.

IRDA Regulations provide an opportunity to the

policyholder to withdraw from the contract within 15days of receipt of the policy document by him / her.

(Free look-in period or Cooling off period provisions).

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Endorsements

• Modifications to the standard privileges, terms and

conditions printed on the policy document by way of deletionsor additions or alterations are effected by a separatedocument; these documents are called

“ Endorsements “.

• Endorsements may pertain to: Nomination made aftercommencement of the policy; change of nomination;assignment; change of premium payment mode; change in

plan or term; reduction in sum assured etc.In non-life: Increase or decrease in sum insured; change ofinsurable interest; coverage of additional perils etc.

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Cover Notes• The Cover Note is temporary and issued when the

negotiations for insurance are in progress; provides

cover on a provisional basis.

• Once the policy is issued, the Cover Note will be

superseded.

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Certificate of Insurance

• Under the Motor Vehicle Act, 1988 a Certificate of

Insurance is required to be issued in addition to the

policy.

•The policy of insurance shall be of no effect unless anduntil a certificate of insurance in the prescribedform as per the Rules of the Act, is issued.

• Under Marine Cargo insurance, certificates of

insurance are issued to provide evidence of cover onshipments insured under Cargo open cover and / oropen policy; a simple document containing particularsof the shipment.

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