IC-38 | Chapter-12 | Documentation At Proposal Stage | Er. Aman Thakur.

Summary

This video provides an informative overview of insurance documentation, specifically focusing on the proposal form, underwriting, and medical examiner reports. It explains the process of policy initiation, including necessary documents like medical reports and identification certificates. The script also delves into customer rights such as the free look period and refund processes. It includes practical examples, quiz questions on policy terms, and risk behaviors, providing a detailed understanding of how insurance policies are handled, from documentation to customer rights. Viewers are encouraged to subscribe for more updates and educational content on insurance products.

Takeaways

• 😀 A prospectus provides complete product information to help customers make informed decisions about purchasing insurance.
• 😀 A proposal form is filled out by the client during the insurance process and reviewed by underwriters to assess eligibility.
• 😀 Medical exams are required during the application process, including checks for height, weight, blood pressure, and more.
• 😀 Legal documents like ration cards, voter ID, and medical reports are essential for insurance policy applications.
• 😀 The free look period allows policyholders to cancel their policy within 15 days and receive a refund, minus any incurred charges.
• 😀 Moral hazard refers to an increase in risky behavior after purchasing insurance, potentially affecting the policyholder or others.
• 😀 A company provides detailed information about their insurance products, ensuring customers understand the full offering before purchasing.
• 😀 Money laundering is the illegal practice of concealing the origin of money, and it must be checked in insurance processes.
• 😀 Insurance policies often come with specific terms, including conditions for cancellations, refunds, and coverage details.
• 😀 A standard example of risk behavior is when a person’s risky actions increase after acquiring insurance, which is considered moral hazard.
• 😀 Questions related to insurance terms like free look period, moral hazard, and the cancellation process are important for understanding the policy.

Q & A

What is a prospectus in relation to insurance products?

A prospectus is a document provided by an insurance company that gives complete information about a product, helping customers make informed decisions before purchasing. It typically includes product details, terms, and conditions.

What is the process for submitting a proposal form in insurance?

The proposal form is filled out by the client with accurate details, and the insurance company underwrites it. This process includes verifying the client's information and determining if the proposal is acceptable.

What is underwriting in insurance?

Underwriting is the process by which an insurance company evaluates and assesses the risks associated with an insurance application. It involves checking the client's details and determining whether the proposal is approved.

What documents are required along with the proposal form?

Documents such as a medical examiner's report, ID proof (e.g., ration card, voter ID, etc.), and certificates from official bodies (e.g., village panchayat) are required. These documents help verify the applicant’s identity and health condition.

What is a free-look period in insurance?

A free-look period is the time frame (usually 15 days) during which an insurance policyholder can review the terms of the policy. If the policyholder finds the policy unsatisfactory, they can cancel it and receive a refund, minus any administrative charges.

What is meant by the term 'moral hazard' in insurance?

Moral hazard refers to a situation where a person takes on increased risk or exhibits risky behavior after purchasing insurance, knowing that they are covered. It can also refer to a situation where someone intentionally exposes themselves or others to harm.

What should be done if a policyholder is not satisfied with their insurance policy?

If a policyholder is not satisfied, they can return the policy during the free-look period and get a refund of the premium, minus administrative costs.

What is the significance of medical examinations in the proposal process?

Medical examinations help the insurance company assess the applicant’s health and determine the potential risk. Factors like height, weight, and blood pressure are typically checked as part of this process.

What documents are considered proof of identity in insurance applications?

Common documents accepted as proof of identity include ration cards, voter ID cards, bank passbooks, and driving licenses. These documents help establish the identity of the policyholder.

What is the definition of money laundering in the context of insurance?

Money laundering in insurance refers to the illegal process of disguising the origin of money earned through illicit activities. The insurance company must ensure that they do not inadvertently support money laundering through their policies and practices.