IC38 Chapter 13 Notes

CHAPTER – 13

DOCUMENTATION – POLICY CONDITION – I

 First Premium Receipt ( FPR) :

An Insurance contract commences when the life insurance company issues a FPR. The FPR is the evidence that the policy contract has begun.

FPR contains the following informations :

  1. Name and address of the life assured
  2. Policy number

iii. Premium amount paid

  1. Method and frequency of premium payment
  2. Next due date of premium payment
  3. Date of commencement of the risk

vii. Date of final maturity of the policy

viii. Date of payment of the last premium

  1. Sum assured.

The company may require a moral hazard report from an official of the insurance company.

Policy Document :

It is the evidence of the contract between he assured and the insurance company.

If the insured person loses the original life insurance policy document, the insurance company will issue a duplicate policy without making any changes to the contract.

It has to be signed by competent authority and stamped according to Indian Stamp Act

Policy Document components :

Policy schedule: – It contains Policy owner‟s name & address, DoB, Age, Plan & Term, Whether the policy is Par / Non Par, Mode of Premium, Policy no, DOC, DOM, SA , Premium paid, nominee, details of riders etc.,

Standard provisions: – These are normally present in all LI contracts.These provisions define the rights and privileges and other conditions viz; days of grace, non-forfeiture in case of lapse.

Specific policy provisions : – These may be printed on the face of the document or inserted separately in the form of an attachment.

Eg:A clause precluding death due to pregnancy for a lady who is expecting at the time of writing the contract