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Module - 3: Insurance Documents

The document discusses the importance of documentation in life insurance contracts, emphasizing the need for utmost good faith and transparency from both parties. It outlines the necessary documents at three stages: proposal, policy duration, and final claim. The proposal form is highlighted as a key document, requiring detailed and truthful information from the proposer regarding their personal and health history.

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18 views1 page

Module - 3: Insurance Documents

The document discusses the importance of documentation in life insurance contracts, emphasizing the need for utmost good faith and transparency from both parties. It outlines the necessary documents at three stages: proposal, policy duration, and final claim. The proposal form is highlighted as a key document, requiring detailed and truthful information from the proposer regarding their personal and health history.

Uploaded by

Always Speak Truth
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Insurance Documents MODULE - 3

Practice of Life Insurance


acceptance. But as the insurer is a legal personality entitled
to contract verbal discussion between parties to the contract
is not possible and hence there is a need for documentation.
Insurance is also a contract of utmost good faith and enforced
only in the distant future. It is therefore necessary that the
declarations made by both the parties should be put in black Notes
and white for future reference. Any suppression, willful and
material shall make the contract void. The insured, therefore,
has a duty to declare all that he knows about himself, his
health, his financial status in answering questions contained
in the proposal form and other ancillary documents which
may be required by the insurer.
We shall discuss in this chapter the various kinds of documents
which become necessary at three stages of a policy –
(1) at the stage of proposal, which if accepted result into a
policy,
(2) during the duration of the policy where several alterations
may become necessary
(3) at the end of the policy contract when insurer pays the
final claim.
2.2.1 Documents needed at the stage of the proposal
2.2.2 Proposal form is the basic format which is filled in by
the proposer who wants to take an insurance policy. It can be
defined as the application for insurance.
A proposal form has three portions
(1) The first gives details about the proposer, his name,
address, occupation, the details about the type of insurance
that he wants to take and the name of the nominee to
whom the money is payable in case the policyholder does
not survive to take the maturity amount.
(2) The second portion relates to the details of the insurance
policy that the proposer already possesses, the present
health conditions and the personal history of his health,
any sickness or accident he might have had.
This is a detailed questionnaire and the proposer is
expected to reply to each question truthfully and honestly.
A female proposer has to reply to certain additional
questions specific to her gender.

DIPLOMA IN INSURANCE SERVICES 21

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