Personal Finance

Insurance Uncovered

| Updated on July 28, 2019

Duties of a policyholder

A smart customer should be aware of his duties when he buys an insurance cover. Here are a few duties of a policyholder compiled from IRDAI’s website:

When you buy a policy

1. Fill the proposal form accurately and honestly; it is the basis of the insurance contract. You should not leave any column blank. Never sign a blank proposal form. This is because you will be responsible for any information in this document as it bears your signature.

2. Disclose all material information about the risk you want to cover.

3. Select the term of the policy as per your needs, select the mode of premium payment — single or regular payment — and the premium amount you can afford to pay.

4. You must register nomination under your policy and fill the nominee’s name correctly.

After you buy the policy

1. Once the proposal is submitted, you should hear from the insurance company in 15 days. If you don’t, take up the matter in writing and, if any additional documents are asked for, comply immediately.

2. Once your proposal is accepted by the insurance company, the policy should reach you within a reasonable time. If not, contact the insurer.

3. When the policy bond is received, check and be sure it is the policy you applied for.

4. Read the policy documents and ensure that you were made aware of all that is explained, by the agent or other intermediary or insurer directly, at the time of sale.

Maintaining the policy

1. Pay your premium regularly on the due dates or within the grace period.

2. Don’t wait for a premium notice to make the payment; pay your premium to avoid lapsation or other penalties.

3. Intimate the insurance company in case of change of address.

4. You can change your nominee after the policy is issued, by filing a notice of change of nomination and sending the same to the insurer.

At the time of a claim

Whenever required, you should help the insurer in a prosecution or for recovery of claims which the insurer has, against third-parties.

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Published on July 28, 2019
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