Page 60 - IC23 life insurance application
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4) Alternation or correction in the name of the assured/nominee;
5) Bringing the policy under salary savings scheme;
6) Replacing a limiting clause by an extra premium. For example the first pregnancy
clause can be replaced by an one time extra premium of Rs.5/- per thousand;
7) An extra premium imposed for specific impairment or occupational reasons can
be removed or reduced. For example, an extra imposed for hernia or hydrocele
can be removed after surgical operation. Similarly, an occupational extra can be
removed, if there is change in occupation to a less hazardous one. However an
occupational extra cannot be imposed, after the policy has been issued, even if
the policyholder takes up a more hazardous job.
All such alterations are effected by an endorsement on the back of the policy. We
shall discuss some of the endorsements normally made for giving effect to certain
alterations :
1) Altering the mode of payment : Change from higher frequency mode to lower
frequency mode can be allowed from the next renewal date of premium under the
proposed mode of payment, e.g. alteration from monthly mode to quarterly can be
allowed from the next quarterly anniversary. The necessary endorsement shall state
that mode of payment being changed from monthly to quarterly, the amount of
instalment shall be changed to the special amount with effect from the special date.
2) Similarly the amount of premium instalment can be changed for changing plan
from without profit to with profit. The endorsement shall state “Altered to with profits
from (earlier plan) ————— premiums from —— @ Rs. ————- to participate in
profits.
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