Page 64 - IC23 life insurance application

2) Premium default notice : This notice is sent within 3 months after the due date

reminding the policyholder to pay the premium to prevent the lapsation of the

policy.

3) Issue of Final lapse notice : If the premium is not paid within six months of the

due date, and the policy is allowed to lapse, this notice is issued to the

policyholder requesting him to revive the policy to restore the full insurance

cover.

4) Intimation to agent : Agent being vitally concerned with the continuance of a

policy, he is also suitably informed every time so that he can contact the

policyholder for payment of the premium.

We have already discussed the several revival schemes initiated by LIC in an earlier

chapter.

Bonus Notices : Though the Insurance Act 1938 enjoins upon the insurer to have a

valuation of assets and liabilities once in every two years, LIC after the introduction

of the computers, has taken upon the responsibility of doing valuation every year. As

a result of valuation, the insurer assesses its financial position and declares bonus

for the with-profit policyholders out of the surplus revealed.

LIC has followed a system of reversionary bonus which is payable only with the final

claim payment. However, as this declared bonus remains attached to the sum

assured, in the year it is declared, an intimation to this effect is sent out to the with-

profit policyholders immediately after the result of the valuation is declared.

Other insurance documents related to insurance :

Copyright Dr Rakesh Agarwal Sashi Publications Private Limited

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010