1. The theory of “UTMOST GOOD FAITH” entrusts the proposer with making disclosures about his and his family members. It is utmost important for you to correctly reveal all the queries asked about your and your family members’ health history and habits.
2. There is one crucial question in the questionnaire of many insurance companies regarding the sick leave availed by you. Give correct information without fail. One of our colleagues posted at Motihari bought a life policy. However, her agent mentioned in the application form that she availed no sick leave. Unfortunately, she expired soon. The insurance company obtained the details of sick leave availed by her from the bank, rejected the death claim on the ground of concealment of the fact and forfeited all the premium paid.
What a travesty! The Insurance Company is not legally required to check any information supplied by you while selling insurance, but on the death claim, they examine that information with the highest power microscope to find any small anomaly with the sole motive to reject the claim and forfeit all the deposited premium.
3. Many insurance agents may advise you to hide the information which will hinder underwriters to accept your proposal. The sole motto of such agents is to earn fat commission paid by the insurance companies during first few years, but your family members will be bereaved from the claim amount later on.
4. Reportedly, some insurance agents change the application form submitted by you to get the insurance proposal accepted by the underwriters. Don’t forget to check the photocopy of the application form annexed with the policy bond as soon as you receive it. If you find any foul play, take up the matter immediately with the appropriate authorities.
I became a victim of such malpractice once, but could not complain since I had not taken receipt while submitting the application form. Thus I had no proof. The travesty was that the miscreant agent was my colleague’s son.
However, insurance is the need of the hour. Everybody must get sufficient insurance cover. You may also buy a term insurance policy of a significant amount at an early age to reap the benefit of cheap premium.http://mytruedreams.in/archives/1489
5. Compare the claim settlement ratios of the different insurance companies. Shun those having low claim settlement ratio.