Page 76 - IC23 life insurance application

rampant in certain communities only. This special risk to the women is called in

insurance parlance "moral hazard".

With the advancement of women in the area of education, employment and

empowerment, such moral hazard is gradually disappearing. However, ladies who

observe purdah can not be insured because they can not be easily identified.

Childbirth is a special risk which the females face. However, under proper medical

supervision, this risk is almost non-existent. Therefore, educated and working

women are considered at par with the menfolk for the purpose of insurance. Dowry

death is a risk for initial few years after marriage. Some insurance companies have

designed special plans to meet special requirements of females.

Children are considered a special category because child mortality is higher than

adult mortality. However, with the medical advancement even this risk difference is

also first disappearing. Female child mortality is particularly high in certain areas and

therefore, underwriters are careful in accepting risk on such lives. Normally a waiting

period of say two years is insisted upon after insurance before the life risk is

accepted on a child's life.

Physically handicapped need support as they cannot earn themselves. Government

allows a lot of tax benefits to the parents of the handicapped children so that the

parents are encouraged to make provision for their handicapped children, in case of

the parents death.

The persons who are physically handicapped are more prone to accidents, for

example blind, deaf, lame are such handicapped persons. They can be insured

also, sometimes by payment of an extra premium. However, every insurance

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