Page 60 - IC23 life insurance application
P. 60

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.



                              Copyright Dr Rakesh Agarwal   Sashi Publications Private Limited



                      Sashi Publications Pvt Ltd Call 8443808873/ 8232083010
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