Policy Document

THE POLICY DOCUMENT

The Policy document is the moist important document. It is the evidence of the contract. It is prepared to reflect the terms of the contract. If the original document is lost, it does not affect the insurance contract. A duplicate policy will be issued on request.

Pre-printed policy forms containing standard policy conditions and schedules are used. Clauses and liens may be separately typed and pasted on the policy document. The Policy Document is to be signed by the competent authority and stamped, according to the Indian Stamp Act. New Technology may enable insurers to avoid pre-printed forms and print a policy every time, with appropriate schedule and terms, including clauses and liens.

The preamble to the policy states that the proposal and declaration signed by the party, form the basis of the contract. The operative clause lays down the mutual obligations of the parties regarding payment if premiums and payment of SA (Sum Assured) on the happening of the insured event and on production of age proof and title of the claimant. The schedule gives all essential particulars of the policy, like date of the commencement and of maturity, SA ( when and how much to pay), nominee (if stated in the proposal), premiums (When and how much to pay), special clauses, if any rider and exclusions or liens, etc. The terms and conditions will refer to the days of Grace for payment of Premium, consequences of default in payment of premium availability of loan etc.

Instructions issued by the IRDA require that the policy information statement should be issued with every policy, stating

(a)      The facility available for mode and periodicity of payment of premium.

(b)      Person or office to be contracted for any enquiry or service relating to the policy.

(c)      Importance of intimating changes of address of policyholder and nominee

(d)      Availability of mechanisms to address grievance / complaints

(e)      Information on location of Insurance Ombudsman.