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Insurance

Structure of commissions for insurance agents

Structure of commissions for insurance agents

The commission obtained by an insurance agent varies depending on the norms and regulations of insurance companies.

However, there is a specific commission structure followed in India that helps insurance agents avail remunerations effectively without any confusion. Let us now dive into the subject, commissions for insurance agents to understand the concept in a better way.

Understanding the concept of insurance commission

Insurance agents depend on commissions and fees that are paid to them by the insurance company. These commissions and fees depend upon the kind of policies sold to the people. The commissions vary from policy to policy.

Another factor affecting the commissions paid to the insurance agent is the insurance premium. For policies sold with higher premium value, the commission paid is more. The insurance premium amount is an annual sum that is paid by the insured [be it an individual or business firm] for availing the benefits of the insurance policy. These policies can be in the form of automobiles, life, dental, medical insurance, etc.

The premium acts as a direct income for the insurance company out of which a specific percentage is awarded to the insurance agent for securing the plan. Let us now go through the various insurance commission structures present in the domestic Indian market.

The commission structure

General insurance commission structure

This is the category of insurance that safeguards individuals and organizations from some loss-triggering event like fire etc. The below-mentioned commission doesn’t include auto-insurances.

  • For the fire retail insurance, the agent gets a 15% commission on the policy.
  • For fire corporate risk the agent can receive a 10% commission.
  • For marine cargo, the fixed commission is 15%.
  • Marine hull insurance will help the agent get a commission of 10%.
  • For other different and corporate general insurance, the agent can get a commission ranging from 10%-15%

Health insurance commission structure

Insurance agents also avail commissions for selling health insurance policies. Following is a breakdown of commissions received by insurance agents through health insurance plans:

  • For individual health insurance, the agent’s commission can be up to 15%.
  • For the group health insurance provided by corporate agencies, the agent gets a commission of 7.5% of the total amount of insurance.
  • For family health insurance the agent gets a 15% commission.

The health policies vary a lot from company to company. Plus, the IRDA guidelines regarding the commission are a bit flexible as well. So, the amount may vary a bit depending on the company offering the insurance.

Life insurance (single payment) commission structure

This is probably one of the most purchased categories of insurance in the market. The commission received by an insurance agent on Life Insurances are:

  • All life insurance except terms plans fetches a commission of 2% for the agent.
  • The term plans get a 7.5% commission for the agents.
  • Renewable terms group plan will attract a 5% commission to the agent or ₹10 lakh whichever is less.
  • A group term plan in a single payment will include a 5% agent commission.

Life insurance for regular premium products commission structure

The below-mentioned commissions for insurance agents are the percentages of commissions that agents get for a life insurance policy that includes the payments of premium for regular products. The insurance premium can be paid monthly or yearly.

  • Individual term insurance will attract a hefty 40% commission in the first year of the plan. And with the subsequent renewals, the commission will be 10%.

The following table highlights the entire commission standard:

Insurance Plan Tenure

Commission Percentage

5 years

15%

6 years

18%

7 years

21%

8 years

24%

9 years

27%

10 years

30%

11 years

33%

12 years [or more]

35%

As already highlighted in the table above, insurance agents can avail of a commission of 15% with a renewal commission depending upon the kind of life insurance policy is sold to an individual. The renewal rate of commission at 40% for a 5-year policy is the highest return an insurance agent can receive.


The highest commission rate obtained stands at a life insurance policy that has a tenure of more than 12 calendar years. However, the subsequent renewal commission rate stands at 10% which is standard for most life insurance plans. On the other hand, the commission percentage on selling Individual Term Insurance stands at 35% which, by far, is the highest commission rate established.

Factors affecting commissions

There are specific guidelines laid down by the Insurance Regulatory and Development Authority (IRDA) about the commission payments to the agents. The companies seeking an insurance license are informed about these guidelines beforehand.

It is the amount that the company pays to the agent to get customers. The agents are given a commission as per the time of the policy. The longer the policy term is, the higher will be the agents’ commission. The agent receives a commission on a policy-to-policy basis.

Another aspect that affects the commission is the type of policy being sold. There are specific percentages fixed for each type of policy being sold by the agents. The insurance companies have to give commission as per these guidelines. Although the companies sometimes give bonuses as well to provide external motivation to their agents.

Companies might even offer other benefits like international tours, to their agents as an appreciation for their work.

There is a certain bit of flexibility in giving the commissions for insurance agents. The IRDA has relaxed certain guidelines about the minimum and the maximum number of commissions that can be paid. You can know all about it from their website.

Conclusion

There are several categories of commissions for insurance agents that seem like they are too much of an amount to be paid to a mediator. However, it is important to understand that the commission offers a significant opportunity as an incentive in the life of an agent. In addition to the above-given information, if you wish to dive deeper then it is advisable to get in touch with an expert or an experienced insurance agent to gather more information about the commission standards.

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Motor Insurance

What is EP in Car Insurance?

What is EP in Car Insurance?

Taking up an insurance policy for your vehicle is extremely important, as it is an expensive asset. With numerous insurance policy options available in the market today, choosing and buying the one that is best for you can be a tricky job. One might plan to choose a policy that has the lowest premium rates, but this often leads to important aspects being missed out on. One of them is the engine of the vehicle.

The engine of a car is rightfully called its ‘heart’ and therefore it should be taken utmost care of.
A comprehensive car insurance policy only covers repairs to your car caused by accidents. The engine of a car needs special attention and care for your vehicle to last long. Hence, it is always advised to look for add-ons for your engine. And the best add-on to avail is Engine Protection [EP] in car insurance.

Let us now answer the fundamental question of “What is EP in car insurance?”

What is an engine protection (EP) cover?

The EP in car insurance is basically an added coverage that is taken up with the comprehensive car insurance policy. This particular add-on offers coverage in the case of losses or damage to the vehicle’s engine of the insured individual. The engine protection cover provides compensation for the repair or replacement of the car’s engine and parts.
Now that we have covered the basics of “What is EP in car insurance”, let us look at the benefits and exclusions of it.

Benefits of EP add-ons:

  • Any damage to the engine needing repair or replacement will be reimbursed by the insurance company up to the limit specified in the policy. The benefits of this insurance add-on are:
  • It is beneficial for individuals residing in places that are prone to flooding; during monsoons, natural calamities, etc.
  • It covers any engine damage due to water entering the engine.
  • It covers engine damage caused due to leakage of lubricating oil.
  • Physical damages to essential elements of the engine such as connecting rods, gearbox, etc. are also included in EP plans.
  • Owners of new or expensive cars might have high costs of engine repair and replacement. Hence, an EP plan is beneficial.

Exclusions of EP add-ons:

The policy comes with exclusions and conditions where the add-on is not valid. The exclusions are as follows:

  • Age of the car: This add-on is only applicable for cars that are below 5 years old.
  • Force-starting the car: When submerged in water, the engine shuts down to protect itself and prevents water from getting in. Do not try to start the engine by force. This will not just damage your engine but also may lead to the rejection of your claim.
  • Limited validity for claim: Depending on the insurance company, there are only one or two claims that can be made within the policy period. In case the insurance holder wishes to make another claim, a new add-on has to be purchased.

Conclusion

It is essential for everyone to do their research before investing in any car policy. It will help you to acquire all the necessary details about a car insurance policy before choosing the right policy with the right add-ons.
Now that you have a brief idea about “What is EP in car insurance”, it’s time for you to educate others.

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Understanding your car insurance claims process

Understanding your car insurance claims process

Car owners buy car insurance so that they don’t need to face financial loss after an accident, theft, and can get coverage for repair costs, medical facilities, etc. In case of an accident or theft, the insured individual is required to place a claim. But are you aware of the car insurance claims process?.

There is a simple and definite procedure to claim the insurance facilities. Relevant and appropriate information has to be provided to the insurance company for hassle-free and quick processing. If you are wondering how to claim your insurance, this article is for you.

How to place a claim after a car accident?

This is the most common case that happens and you need insurance facilities for repairing and medical facilities. So, how would you place a claim in the case of a car accident? Let us check out.

  1. Your very first duty after an accident, if you are not severely injured, is to collect photographs and take notes. If you have been involved in an accident with another car, pen down the car number, owner’s name, model, etc. Click photographs of the driver, car, your car, and the exact scene after the accident. These are valid pieces of evidence that you would need to show to the police and the insurance company.
  2. Though it is optional, it is always a good decision to report the accident to the local police station. Get a copy of the police report so that you can show it to the company. This helps in the quicker processing of the claim.
  3. Now is the turn to inform the company. You should go step by step. So, now you would require to fill a claim form. The claim form is available on the website of the insurance company or you can collect the form from the office. Fill the form carefully giving each and every detail.
  4. Once the claiming process is primarily done the company would send a surveyor to the accident spot to see the situation and examine the severity of damage to the car. You can provide the information and photographs you collected if the surveyor asks for them.
  5. The surveyor would prepare a report providing information and detail about the accident, damage details of the car, etc. He would send this report to the insurance company and submit a copy of the report to the insured person.
  6. Once the report is made, the assistance needed by the insured would become clear. The surveyor will then accompany you to the garage and offer the required guidance.
  7. Once the repairment is done and the car repairment bills are in your hand. This bill needs to be handed over to the surveyor. He would send the bills to the insurance authority.
  8. The insurance company would evaluate the bills and provide the payment to you.

However, always remember to report the accident immediately to get the maximum reimbursement. If you report it late, you may not get the expected amount. Therefore, the very first take is to inform your insurer about the accident and let a surveyor come to review the condition. It is your responsibility to ensure that every required detail is conveyed to the surveyor with relevant supportive proofs, like photographs, etc. It is highly recommended to bring every tiny piece of information to the notice of the surveyor in order to gain the maximum benefits.

Information needed to file a claim after a car accident

What information should you collect to file a claim? There are a few things that can help to make your case stronger and can act as solid evidence. Here is a list of the basic information that you must collect before filing a claim.

  • Note down the insurance policy number from the policy card.
  • Mention the date, time, and location of the accident.
  • Try to click some photographs of the accident scene. This will help the insurer to have a clear picture of what exactly happened.
  • Provide an in-depth description of how the accident happened.
  • If another party is involved in the accident, you would need to provide the insurance and contact details of the party.
  • You would have to provide the police station name where you reported the accident along with the report and the report number.

How to file a claim in case of car theft?

Now how would you file a claim if your car gets stolen? The process is more or less like the claiming procedure after an accident. You need to follow a few simple steps, let us take a look into the procedure.

  • Your first task is to file a police complaint about the theft.
  • Share the copy of the FIR with the insurance company authority.
  • Now the insurance company would send a representative for investigation.
  • You have to wait until the investigation is finished and the claim is approved by the insurance company authority.
  • Once your insurance claim is approved, you are required to submit the RC book of the car along with the duplicate keys.
  • Now the name of the car owner would be changed from yours to your insurer’s name.
  • You will also require to submit a subrogation letter along with some other papers that the insurer would ask for. Make sure to put on the signature on the papers.
  • Once the paperwork is done, the insurance authority would go ahead with the reimbursement of the claim.

The procedure is pretty simple. You just need to act rationally whenever an accident or incident of theft occurs. In case of an accident, don’t blame the other party. Don’t panic in that situation. Let the insurer handle the situation and figure out who is at fault.

Similarly, in the case of theft, report your insurer instead of panicking. Whenever the case is genuine, the insurer is always there to help you out. So, nothing to worry about.

Before buying insurance, read out and learn about the claiming procedure so that you can take immediate action after a mishap and make the car insurance claims process seamless.

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What is Zero Depreciation Car Insurance?

What is Zero Depreciation Car Insurance?

We have often come across the word depreciation. We usually hear it while we are reselling our machinery, especially cars, or while balancing our account books. Before understanding what is zero depreciation car insurance, it is important that you are familiarized with the concept of depreciation.

Depreciation plays a very crucial role in the motor insurance segment. Simply put it is a loss in the asset’s value. This deduction in value is done from time to time. It usually happens due to the factors like the age of the vehicle, no. of miles run, maintenance record, etc. This is the main reason why people prefer to buy second-hand cars because they get them at a reduced price.

We all know how complicated the insurance industry is. What usually happens is in case of an accident or damaging event, if the parts of your car are damaged, you won’t recover the whole amount lost.

Usually, the companies reduce the amount of depreciation on the part and then they pay you the balance. The person has to pay for the variation between the market value and depreciated part of the car.

This is where zero depreciation car insurance comes into play.

What is zero depreciation car insurance?

As the name suggests this category of insurance nullifies the depreciation factor while calculating the claim. If you buy a car insurance policy with zero depreciation then it doesn’t take into consideration the depreciation factor while reimbursing your claim.

The normal general insurance policies take into consideration the depreciation factor and then give you the amount as reimbursement. In zero depreciation, it’s not the case.

A zero depreciation policy can help you get the whole amount of compensation thus safeguarding you from all the losses that you may incur due to depreciation. You can buy this category of insurance while purchasing a new car or while renewing your policy.

Benefits of zero depreciation car insurance

1. No depreciation

As already mentioned, when you make a claim for any part of your car, the depreciation factor will not be considered while giving you the claim. The insurance company has to make the compensation which is in line with the market value of the car.

2. Major service providers

All the major insurers in the country provide this option in their offerings in the category of auto insurance. Zero depreciation is an indicator of the quality of the service provider.

3. Nullifies investment

Zero depreciation is a valuable addition to your basic auto insurance coverage. The elimination of depreciation factors makes your investment almost nil. It means that you will get a majority of all the amount that you have invested to repair your car or its parts.

4. The best option for New drivers

It is a highly suitable option for the new drivers because the fear of losing money is eliminated. We all know that the car starts to depreciate as soon as it comes out of the showroom. The new drivers are more prone to accidental situations thus it is better to nullify the depreciation aspect with zero depreciation.

Factors to consider before purchasing zero depreciation cover

After understanding what is zero depreciation car insurance. Now you should understand the factors that you should look for before purchasing zero depreciation insurance coverage.

1. Age of the car

There is a certain limit in terms of the number of years for purchasing zero depreciation insurance for your cars. You should always know that zero depreciation insurance is only available for new cars. The best thing to do is buy this while purchasing your new car.

2. Limitations on the number of claims

There are only a certain number of claims that you can make in the zero-depreciation policy. You should talk to the agent about this before making the purchase. This factor varies from one company to the other.

3. Claim settlement policy

Always look at the mechanism that your insurer is opting for while settling your claim. There is a certain percentage of reimbursement limitation on each material. For example- 50% depreciation on nylon parts. This is a bit of a complex factor about which you can talk to the representative to easily understand this.

4. Place of registration

If you have registered your car in urban areas then your premium rate is going to be a bit high as compared to the rural areas. The reason is that the cars are most susceptible to damage in the urban areas as compared to the rural areas.

5. Fuel and engine type

The fuel and engine type also plays a crucial role in deciding the zero-depreciation factor. The policies of each company vary as per the engine and fuel types.

Who should buy zero depreciation insurance?

People should also consider some personal factors before buying this option for their cars.

  • People who own luxury cars and have installed expensive parts in their cars. The reimbursement through zero depreciation will help you save a lot of money.
  • People who don’t like small scratches and dents on their cars.
  • People who are relatively new drivers and are just starting on the road.
  • People living in high-risk zones like difficult terrain or areas which are highly prone to accidents.
  • New car owners should always consider buying zero depreciation insurance coverage.

Conclusion

This was just a brief to explain what is zero depreciation insurance. You must always consult an expert and collect all the necessary information. The companies have a lot of options to offer to their customers, but you must always compare and only then choose a plan for yourself.

People apart from the above-mentioned categories should also opt for a zero-depreciation policy. This has become a very important aspect because the number of cars is increasing every day and the possibility of accidents and thefts is also on the rise.

It is always in your favor to choose the option of zero depreciation coverage. Depreciation is a factor that always leads to losses. The Zero depreciation insurance coverage will save you from the losses that may arise due to depreciation.

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Decoding the life of an insurance agent

Decoding the Life of an Insurance Agent

You may wonder about the opportunities as an insurance agent. You may think to pursue a career as an insurance agent or maybe you are interested in knowing what an insurance agent does. No matter what the question is, let us see how the life of an insurance agent is.

Roles and responsibilities of an insurance agent

So, the very first question is what does an agent do? An insurance agent sells the relevant insurance policies to the clients which fulfill the needs of the client. They bargain, negotiate and work to sell out insurance. An insurance agent has the freedom to choose if he wishes to work under an insurance company or function as an independent broker.

Apart from dealing with clients, they do a lot of other activities. Here are a few tasks that an insurance agent undertakes:

  • An agent helps clients in doing the paperwork and goes through the procedure after convincing them to buy insurance.
  • He/She monitors the amount to be paid and facilitates payment methods.
  • He/She attends meetings with the company to learn about new policies.
  • He/She organizes meetings with organizations to convince them.
  • An agent notes down the day-to-day progress of his or her work.
  • He/She makes sure to learn about customers’ problems and solve them to maximize customer satisfaction.
  • He/She checks on the property, asset, or any other object that is to be insured and determines the insurance risk.
  • He/She may even customize the policies to fulfill customer’s demands.
  • He/She looks after the insurance claims.
  • An agent assists clients to process the claims and get the reimbursements on time.

Essential skills of an insurance agent

  • An insurance agent has subtle yet powerful convincing skills. The approach is delicate and polite but the words are often enough to convince clients.
  • An insurance agent possesses the skill to speak fluently and confidently. Put up logic on why clients should buy insurance. A clear and confident communication compels people to purchase insurance. Communication plays a vital role as it helps to inform potential customers about the plans and schemes that can help them in the long run.
  • An Insurance agent works hard to satisfy his/her clients through customizing policies, helping them, learning about their demands, and indulging to enhance customer service quality.

The life of an insurance agent is subject to various payment opportunities based on the market conditions and the determined commission rates. Therefore, an insurance agent ensures to understand the requirement of a client perfectly such that the best plan can be pitched and sold and also satisfies the customer’s requirement.

An insurance agent also acts as a counselor and an advisor to all his/her clients. An insurance agent, for example, life insurance agent may not just be confined to selling only a life insurance policy. He or she may also offer other policies such as health insurance, theft insurance, disability insurance, financial packages [including mutual funds, and other securities], etc. depending upon the need of the customer.

The above mentioned are some of the foremost responsibilities, skills, and challenges that the Life of an insurance agent is full of. They need to master all of them in order to deliver excellent performance and succeed in their career.

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What is First-Party Insurance?

What is First-Party Insurance?


An insurance contract is a contract between the first and second party wherein the second party or the insurer promises to pay or compensate the first party for his losses that might arise due to accidents or other loss-triggering events.

The motor and vehicle laws all across the world have made it mandatory for an individual to insure their car before getting it on the road. Multiple types of insurance categories vary as per the laws of the land. Before getting into the other details, you must first know what is first-party insurance and who is referred to as the first party.

Who is the first party?

The owner of the car is the first party. To simply put it, the first party in insurance is the person who is paying for the insurance policy. The purchaser of the policy is known as the first party. He/she is the individual who is going to receive all the benefits (compensation) whenever there has been a triggering event.

What is first-party insurance?

In this category of insurance, the first party can make the insurer liable for the losses that he/she has incurred in case of theft, damage, accident, etc. This insurance also covers the third-party losses that may arise due to the damage caused by the car owner. For example- Body injury during an accident, etc.

Procedure of filing first-party claims

A First-Party insurance claim can be initiated by the responsible policyholder. Claims can also be made by the immediate nominee specified in the insurance contract upon the death of the legal policyholder. The following method must be followed to successfully file a first-party insurance claim:

  1. Get in touch and inform the company or insurer responsible.
  2. Obtain a copy of an FIR from the regional police station where the initial accident occurred.
  3. Submit all the required documents to the insurance company.
  4. The vehicle must be submitted to a workshop as authorized by the police station if any damage is incurred to the car.

After the completion of the filing procedure, a thorough investigation is conducted by the insurance company followed by a complete analysis of the documents submitted. Based on the evidence collected, the insurance firm will approve or reject the claim filed.

Difference between First-party and Third-party insurance

In the case of first-party insurance, the beneficiary is the owner of the vehicle. Whereas, in the case of third-party insurance, the compensation and benefits are availed by the other individual who might have suffered in the accident.

First-party insurance covers the losses of the vehicle owner up to the amount decided in the policy. On the other hand, in the case of third-party insurance compensation is paid depending upon the losses suffered by the third party.

Before purchasing your insurance policy. You should always check for these laws. It will help you to purchase the policy as per the rules of the country and will also safeguard the various penalties that you may have to incur because of non-compliance.

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How to Launch a Complaint with the Insurance Ombudsman?

complaint

How to Launch a Complaint with the Insurance Ombudsman?

Insurance is important to ensure the financial security of our family, property, car, etc. in case of unforeseen circumstances. This is why we turn to insurance companies to get these facilities. But what if you don’t receive the amount you are owed? What if the payment is getting delayed? What would you do if the company doesn’t provide the facilities as promised?

In case of any inconvenience and difficulty, you are required to file a complaint and one of the ways to do so is via an ombudsman. Insurance Ombudsman is an initiative directed by the Government of India that allows individuals to effectively sort out complications related to a specific insurance policy outside the court of law. But how to launch a complaint with the insurance ombudsman is something not everyone is aware of.

You may not know how exactly you can reach out to the company for help. Nothing to worry about. We are here to tell you every step of how you can launch a complaint regarding your insurance difficulties.

How can you launch a complaint with the insurance ombudsman?

There are easy steps to file a complaint. But sometimes the easy methods may not work if not followed in a pattern. Hence, it is imperative to know and follow the correct sequence to launch a complaint.

So here, we will start from the simplest solution and see to what extent we may need to go to solve the issue.

Know when to file the complaint:

It is advisable to file a complaint under the insurance ombudsman when an adequate response from the concerned insurance firm has not been received within a time frame of 30 working days [from the date of the official complaint].

Contact the ombudsman office:

Contact the ombudsman office present in your jurisdiction. For an instance, if your insurance company is based in Delhi and you live in Mumbai. You must contact the ombudsman Mumbai office to file the complaint.

Filing the complaint:

The complaint can be filed by sending a letter to the insurance ombudsman. You can also file the complaint through fax or email. Although, if you file the complaint over an email, you will have to send a hard copy later.

What must your letter include:

All the necessary details and documents related to the matter, including your policy number, must be included. The documents required may vary depending upon your grievance. It is advisable to confirm everything with the ombudsman’s office and only then post the letter.

Visiting the ombudsman office:

If you visit the ombudsman office, you must fill the P-II and P-III forms. They will revert back to you asking you to fill these forms if you send your documents through the post.

Fixing of the date:

After the documents have been submitted and other formalities have been fulfilled, a date for the hearing will be fixed by the insurance ombudsman.

These were the basic steps you may take to file a complaint. It is important to note that the complaint needs to be filed within a year after your last conversation with the insurance company regarding your grievance. You must also note that the same complaint should not be pending before the consumer forum or the court, as these two institutions are the last resort for any grievances.

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How do I download an Insurance Copy? – A Brief Explanation

How do I download an Insurance Copy? – A Brief Explanation

The motor vehicle laws and regulations make it mandatory for you to carry the insurance copies with you every time. The rules regarding these have been developed after insurance was made mandatory. This is why it becomes crucial for you to know the answer to the question “how do I download an insurance copy?”

There are a few simple steps that need to be followed for downloading the insurance copy. Apart from following the steps, you are required to submit certain documents to get your insurance copy.

If you ever lose your policy or require a copy, here is a list of steps that will help you get your insurance copy.

Online method

Visit the service provider’s/company’s website

The first step is to visit your insurance company’s website. You will have to search the website URL on the search engine if you’re not aware of that. The website will direct you to their homepage.

Select the type of policy

After visiting the website select the category of policy you have purchased. It will be easier for you to navigate and enter details about your policy number.

Enter your details

Enter the details regarding your policy number, your id. Number, phone number, etc. This will make it easier for the portal to generate your copy.

Verification

Most of the service providers will ask you for verification. It can either be verification via email id or using the OTP verification methods.

Policy copy

A copy of your policy will be generated as soon as the verification is completed. (these procedures may vary a bit as per the companies’ websites)

Offline method

In addition to the online method of downloading an insurance copy, people can also resort to the offline procedure of obtaining a copy. This method can be initiated when the insured has misplaced or lost the documents of the insurance. The process to avail it is as follows:

Inform your insurance company

The very first step that you need to follow in order to get your copy is to inform your insurance company or agent. This will initiate the process of copy recovery in an offline manner.

Launch a police complaint

It is one of the legal requirements of offline copy generation. You have to launch a police complaint that you have either lost or misplaced the insurance copy. It will also safeguard your policy in case it has been stolen.

Indemnity bond

On a non-judicial stamp paper, you will need to sign an indemnity bond in order to get a copy of the insurance. This is also essential legal compliance that you need to follow to generate your offline copy. The conditions of the bond may vary from company to company. Talk to your agent and lawyer before completing this legality.

Advertisement

Give a legal notice and ad in one of the prominent newspapers. This should contain the details like your contact number and name. It is information to the public that you have lost your policy and in case anyone claims this policy as theirs, they are not legally entitled to do so. There is a clear guideline regarding this as well. Research before you give out a public advertisement.

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What is a proposal form in insurance?

What is a proposal form in insurance?

A lot of paperwork has to be done before and after buying an insurance policy. And the very first paper or form that you would need to fill up is a proposal form.

So, what is a proposal form in insurance? As the name suggests, it is a form that you fill and submit to propose something. This means the initial task of buying insurance is to present a proposal. One may propose it verbally, or by writing a letter. But most of the time, when you visit an insurance company, an agent would give you a form to fill.

What are the elements in a proposal form?

You may wonder what the form is about. The form asks you basic questions as well as requires you to answer some specific questions depending on the insurance you are buying.

Let us look into some basic questions that you would be asked in the form:

  1. Name– The name of the proposer comes at the very first of the form.
  2. Address– Address is necessary and should be written correctly to prove that the candidate is genuine.
  3. Contact– Contact details like mobile number, email, fax, etc. are required for seamless communication.
  4. Occupation– The occupation of the proposer gives an idea about the income and suggests the best plan.
  5. Insurance amount needed– You need to provide detailed information about the property being insured, and what amount of coverage you require. Also, valid reasons should be provided.
  6. Claim history– You must provide information clearly about previous damages and insurance claims that you have made.
  7. Other insurances– You have to write about other insurance policies you have bought and mention the names of the companies.

This is only the very basic information. Depending on the insurance policy you are going to buy, a lot more details should be provided in the proposal form.

For example, if you buy car insurance, you need to explain the model, when you purchased it, the price of the car, etc. On the other hand, if you are buying life insurance, you have to mention your age, medical conditions, a brief about the nominee, etc.

Most proposal forms include information about the proposer’s physical health. Also, you have to sign the proposal form with the date. The signature of the insurer’s agent should be present too.

Besides, the form includes some terms and conditions as well as has some declarations. For example, it says that the information you have provided is required to be correct. It also mentions that the premium amount has to be paid by the proposer and so on. You must go through these terms, conditions, and declarations before signing the form.

Final overview

And now the proposal form, with all your information would go for underwriting. Underwriting is a process to check the proposer’s eligibility to receive the insurance benefits. Once it is done, you are all set to enjoy the insurance benefits.

Therefore, make sure to fill up the proposal form carefully and provide genuine information with adequate reasonings so that the company approves your proposal.

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Insurance

What is an insurance policy number?

What is an insurance policy number?

Buying an insurance policy might seem like an unnecessarily forced expense to you, but it is very important. Depending on the type of insurance you choose, it might serve as a protective cover for your family or a valuable investment.

Every vehicle on the road has a unique number for identification purposes. Just like that, every insurance policy has a unique policy number. It serves various purposes. In this article, we will learn what is an insurance policy number and the purposes it serves.

What is an insurance policy number and why is it important?

An insurance policy number is a unique set of number combinations allotted to a policy holder. Through this number, its recognition and coverage span is made viable. It is a set of 8 to 10 digits, usually printed on the insurance card or statements issued by the company. 

Every policyholder must remember or note their policy number as one might need it under certain situations. All types of insurance policies, be it motor insurance, health insurance, life insurance, term insurance, property insurance, etc have a unique policy number associated with it.

Let’s cover a few aspects of when and why is an insurance policy number is deemed important.

Importance of an insurance policy number

  1. Renewing your insurance– Every time you plan to either change or renew your insurance policy, this number comes in handy. It ensures that your no claim bonus (NCB) gets transferred to your new policy from the previous one.
  2. Police checking– Police routine checks are done so as to make sure of the vehicle’s legitimate owner and possession of certain other documents for safety reasons. It is here that you would need to show your unique insurance number for verification.
  3. Requesting for a duplicate policy– Getting a copy of your original policy (if lost) can be done easily when you provide the company with your policy number. Once the system is fed with your previous insurance policy number, details of the same can be easily retrieved to produce a copy. Hence, the workload is reduced to zero!
  4. Selling your vehicle– At some point in time, you’d want to sell your vehicle to get a new one. To check the validity of the vehicle’s insurance, the buyer might ask for your policy number to feed his contentment for making a safe and cautious purchase.
  5. Updating your insurance policy details– There are times when wrongly pronounced information, like your phone number, address line, name, etc. gets included in your policy details which demand to be rectified at the earliest. To have this done, an insurance policy number proves immensely useful and essential.

The insurance policy number provides your insurance policy with its identity. Being aware of the insurance policy number can help you in several situations. 

You cannot enjoy the benefits of the policies without the unique set of the number assigned for your insurance. Now, that you are aware of what is an insurance policy number and its importance, it is essential that you remember the number and educate others about its importance and benefits.

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