Page 48 - IC23 life insurance application

alterations may become necessary (3) at the end of the policy contract when insurer

pays the final claim.

Documents needed at the stage of the proposal

Proposal form is the basic format which is filled in by the proposer who wants to take

an insurance policy. We have discussed the proposal form and its relevance in great

detail in the chapter under “Functions of the Agent”(Item 5). We shall summarise

here what we have already said. A proposal form has three portions

(1) The first gives details about the proposer, his name, address, occupation, the

details about the type of insurance that he wants to take and the name of the

nominee to whom the money is payable in case the policyholder doesnot live to

take the maturity amount.

(2) The second portion relates to the details of the insurance policy that the proposer

already possesses, the present health conditions and the personal history of his

health, any sickness or accident he might have had. This is a detailed

questionnaire and the proposer is expected to reply to each question truthfully

and honestly. A female proposer has to reply to certain additional questions

specific to her gender.

(3) The last portion of the proposal form relates to the declaration. Through this

declaration, the proposer (i) affirms the veracity of the statements made in the

proposal form in replying to the question (ii) affirms that he/she has not

suppressed, misrepresented or concealed any fact which may be material to the

risk (iii) agrees that this declaration along with the proposal form shall form the

basis of the contract and (iv) further agrees to take the insurance on the terms

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