IC33 English Chapter 12 Notes

Chapter 12: Documentation – Policy Stage

First Premium Receipt: An insurance contract commences when the life insurance company issues a first premium receipt (FPR). The FPR is the evidence that the policy contract has begun.

The first premium receipt contains the following information:

  • Name and address of the life assured
  • Policy number
  • Premium amount paid
  • Method and frequency of premium payment
  • Next due date of premium payment
  • Date of commencement of the risk
  • Date of final maturity of the policy
  • Date of payment of the last premium
  • Sum assured

Policy Document: It is evidence of the contract between the assured and the insurance company. It is not the contract itself.

The standard policy document typically has three parts:

Policy ScheduleName of the insurance company
Some specific details for the particular policy like:
Policy owner’s name and address
Date of birth and age at last birthday
Plan and term of policy contract
Sum assured
Amount of premium
Premium paying term
Date of commencement, date of maturity and due date of last premium
Whether the policy is with or without profits
Name of the nominee
Mode of premium payment – yearly; half-yearly; quarterly; monthly;
The policy number
The insurer’s promise to pay. This forms the heart of the insurance contract
The signature of the authorised signatory and policy stamp
The address of the local Insurance Ombudsman
Standard ProvisionsThe second component of the policy document is made up of standard policy provisions, which are normally present in all life insurance contracts, unless specifically excluded. Some of these provisions may not be applicable in thecase of certain kinds of contracts, like term, single premium or non-participating (in profits) policies. These standard provisions define the rights and privileges and other conditions, which are applicable under the contract.
Specific ProvisionsThese are provisions that are specific to the individual policy contract. These may be printed on the face of the document or inserted separately in the form of an attachment.

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