Page 359 - Misc Ebook IC 78

Miscellaneous Insurance

Proposal Form: The form requires the following
information:
(i) Personal details
(ii) Physical conditions
(iii) Habits & pastime
(iv) Other or previous insurances
(v) Previous accidents or illness
(vi) Selection of benefits &sum insured
(vii)Declaration

Sum Insured: Sum insured though is selected by the
insured, the insurers do exercise some control. The sum
insured is chosen according to the average monthly
income of the insured.

E.g- a policy of Rs 1 lac cannot be granted to a
person earning Rs 1000 per month,because in the
event of temporary disablement his weekly benefit
becomes Rs 1000 (monthly Rs 4000) which is
disproportionate to his monthly salary. The sum
insured can be granted upto 60-72 months earning
of the insured.

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