Stages in Insurance policy, Pre-sale stage, Post-sale stage, free look period

25/04/2021 1 By indiafreenotes

Pre-Sale Stage

  • Fill the proposal form yourself correctly and truthfully, it is the basis of the insurance contract
  • Do not leave any column blank, do not sign a blank proposal form
  • You will be responsible for any information in this document as it bears your signature. Disclose “all material information” about the risk you want to cover
  • Select the term of the policy as per your needs
  • Select the amount of premium you can afford to pay
  • Choose between Single Premium or Regular Premium
  • Choose your premium paying frequency such as annual, half-yearly, quarterly or monthly
  • Opt for electronic payment of your premium (ECS) for your convenience, safety and records
  • Ensure to register nomination under your policy. Fill the nominee’s name correctly
  • Ensure that your communication details mentioned in the proposal/other forms are correct, in case of changes at a later stage, the same are informed to the Insurer. This is very important as Insurers send information relating to various services such as proposal registration, claims details, status etc.

Post-sale stage

  • Once the proposal is submitted, you should hear from the insurance company in 15 days
  • If not, take up the matter in writing
  • If any additional documents are asked for, comply immediately
  • Once the proposal is accepted by the insurance company, the policy bond should reach you within a reasonable amount of time
  • If not contact the insurance company about it
  • When policy bond is received, check it and be sure that the policy is the one that you wanted.
  • Go through all the policy conditions and be sure that these are the same that were explained to you by the intermediary/ insurance company official at the time of sale
  • In case of doubts, contact the intermediary/ insurance company official immediately for clarification.
  • If necessary contact the insurance company directly

Maintaining the policy:

  • Pay your premium regularly on the due dates/ within the grace period
  • Do not wait for a premium notice. It is only a courtesy. It is your duty to pay the premium to avoid lapsation or other penalties
  • Do not wait for your intermediary or anyone to pick your cheque up. Make your own arrangement for paying the premium on time
  • If there is a change of address, please intimate the insurance company immediately.

Free Look Period

All new individual health insurance policies issued by Life Insurers, General Insurers and Health Insurers, except those with tenure of less than a year shall have a free look period. The free look period shall be applicable at the inception of the policy and

(1) The insured will be allowed a period of at least 15 days from the date of receipt of the policy to review the terms and conditions of the policy and to return the same if not acceptable.

(2) If the insured has not made any claim during the free look period, the insured shall be entitled to:

(a) A refund of the premium paid less any expenses incurred by the insurer on medical examination of the insured persons and the stamp duty charges.

(b) where the risk has already commenced and the option of return of the policy is exercised by the policyholder, a deduction towards the proportionate risk premium for period on cover or.

(c) Where only a part of the insurance coverage has commenced, such proportionate premium commensurate with the insurance coverage during such period.

(d) In respect of unit linked policy, in addition to the above deductions, the insurer shall also be entitled to repurchase the unit at the price of the units as on the date of the return of the policy.