Page 61 - IC23 life insurance application

As the instalment premium for a with profit policy is more than the instalment

premium for a without profit policy, the difference on the arrear premium is collected

with interest before giving effect to this change.

Similarly the benefits of Double Accident Benefit can also be granted, if not earlier

availed of, from the next policy anniversary. This necessitates an alteration in the

instalment premium for the future and therefore an endorsement on the policy is

required.

Sometimes a request is received from policyholder to remove an extra premium

charged due to a substandard health condition, because now he has improved his

health. Such an extra is not removable. The reason is as follows - At the time of

imposition of extra, the underwriter presumes that some of the policyholders, now

having bad health shall improve in their health and some of the policyholders who

are now enjoying good health shall deteriorate in their health. If we are to remove the

extra for improvement in health, we may have to charge extra for deterioration in

health. This step will be highly unfair and contrary to the principle of insurance.

However there are health related extras which are removable, but these are disease

specific. For example any extra premium charged due to cataract, hernia, hydrocil,

non-vaccination, piles, pyorrhea, loss of teeth can be removed, when specific

treatment has been done and the problem does not exist. A certificate from the

treating surgeon will be necessary, for altering the premium to a lower level. An

endorsement on the back of the policy is made in the following manner:

“On production of satisfactory evidence to the effect that the within named life

assured is successfully operated upon for cure of hernia, it is hereby declared that

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