Page 83 - Ebook health insurance IC27

Sashi Publications

Tools for underwriting

The key tools for underwriting health insurance are:
A. Proposal form: A proposal form is the document which is filled by the prospective

insured to provide all material information in respect of risk to be covered. After
going through the proposal form the insurer decides whether to accept or reject the
risk and if so then at what terms and conditions.

The proposal form contains questions designed to elicit all material information about
the particular risk proposed for insurance. It also contains the provisions of section 41
of the Insurance Act according to which payment of any rebate in premium is prohibited.

Common questions covered in all proposal forms
a. Proposer's name
b. Proposers address
c. Proposers professional occupation and business
d. Previous and present insurance
e. Loss experience
f. Sum insured
g. Signature, date, agents recommendation

B. Age Proof: Premium in health insurance is determined on the basis of age of the
policyholder. At the time of issuance of policy the insurers ask for submission of an
age proof like schools certificate, passport, etc

C. Financial documents: financial documents are required by the insurers to assess
the financial position of the insured. Usually the financial documents are required in

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