FREQUENTLY ASKED QUESTIONS(FAQs) ON UNDERWRITING
1.In case of Plan 175 (Bima Bachat) where age of the Life to be Assured is more than 60 years, whether the Branch Office can underwrite?
Yes. Branch can underwrite proposal under T 175 where age of LA is more than 60 years provided the proposer is a standard life and submitted standard age proof or NSAP-I.
2. At present insurance upto 2 lacs can be allowed to category 3 widows having own income, by Div.Office Whether it can be allowed to widows having no children?
Insurance cannot be allowed to cat III widows having own income without children. Refer U&R Circular 24.
3.In deformity cases where the decision is to accept with Class 2 health extra +ab (excluding PDB/EPDB), whether extra premium is to be excluded for the first 20000 SA?
In deformity cases where the decision is to accept with Class 2 health extra +ab (excluding PDB/EPDB) extra premium is to be excluded for the first 10000 SA. Insurance offered without extra premium on any ONE LIFE SHOULD NOT EXCEED RS.10,000/-.
4 What is the maximum allowable insurance to Category III females, widows and minors?
SUM AT RISK (ASA) is to be taken into account while deciding the maximum cover allowable.
In respect of plans like Bima Nivesh, Bima Bachat, Endowment Plus with single premium mode, the actual effective risk after taking into account the single premium is low and hence only ASA ie, SUM ASSURED LESS SINGLE PREMIUM is to be considered for determining the maximum Sum assured allowable to the respective category.
5. Whether CEIS Rebate is allowed to LICHFL employees and their spouse
No. CEIS Rebate is not allowed to LICHFL employees
6. What are the points to be noted while allowing insurance to legally adopted children?
Adopted children can be treated on par with own children subject to obtaining 1. Legally adopted certificate 2. Standard age proof 3. MHR by BM and subject to minor life underwriting.
7. How are overseas Citizens of India to be treated?
Overseas Citizens of India are to be treated on par with Foreign Nationals of Indian Origin.
8.Give CDA plan to FNI8. Can we O minors?
There is no restriction with regard to granting CDA plans to FNIO minors.
9. Whether PWB is allowed under minor plans (T 184) for foreign nationals of Indian Origin?
PWB under all minor life plans (treated as pure term insurance plans) not allowed to Foreign national of Indian Origin.
10. Whether Mail Order Business is allowed for persons who have got permanent residence abroad (like Green Card holder)?
Green Card holder is to be treated as Foreign National of Indian Origin. Hence mail order business not allowed.
11. For considering Matching insurance of husband ,in case of proposal from a NRI who is Housewife, whether we can take into consideration the insurance provided by the employer abroad as employee benefit and the insurance taken with the foreign insurer
Insurance taken with the foreign insurer can be considered for matching insurance, subject to obtaining proof for the same.
12. Whether one year service required for considering NRIs under NMS. It is not given as a condition in Cir. Actl /1923/4 dated 19.12.2003.
One year length of service is necessary to consider under NMS for NRIs subject to other conditions for NMS.
13. How to underwrite proposals on Srilankan refugees settled in Tamilnadu.
Underwriting of proposals on Srilankan refugees has to be considered on the merits of each case.
Following proof/documents should be obtained:
1. Recent photograph of Life to be assured for all cases [Even when premium is less than Rs.10000/-
2. Ration card
3. Refugee id card
4. Bank statement
5. Income proof/If filing IT, obtain ITRs
6. PAN CARD if obtained
7. MHR from Development Officer
Xerox copies of statement should be self attested and duly verified and attested by Dev.officer.
14. underwriting clarification on caesarean cases
1. If LSCS with tubectomy (without any other associated impairments) - BO can complete the case calling for Discharge summary or Gynecologist's report regarding present status provided the report is normal and treat the proposer is a standard life
2.In case of LSCS>10 YRS and if not associated with any other impairment BO can complete the case as standard life if the scar is healthy based on FMR.
3.As per Revised DMR's guidelines : If LSCS without tubectomy - After 3 months and not associated with any other impairments : Discharge summary Or Gynecologist's Report regarding present status is Additional manual requirement. Get the above reports and underwrite based on DMR's opinion .If LSCS without tubectomy is within 3 months, the proposal should be postponed to 3 months.
4.Addendum for caesarean is not required for all cases.
24.2.11
15. Whether premium deduction from salary of our employee (SSS) permitted for his/her spouse's policy.
Premiums under the policies on the life of spouse can not be deducted from the salary of the employee.
16. Queries are received regarding minors who are getting income from employment [discontinued the studies]. Can we entertain proposals from earning minors?
Proposals cannot be entertained from the lives of earning minors.
17. Whether we may allow insurance under plans Bima Nivesh(171) & Bima Bachat (175) to NRIs who are not eligible for NMS.
As per CO Circular ref.Actl./2056 dt.25.2.2006 Plans Bima Nivesh (T 171) & Bima Bachat (T 175) can be allowed to NRIs during their visit to India
18. Whether Bima Account I & II (Plan 805 & 806) can be completed under non-green channel?
CO has clarified that these plans can be completed under Green Channel only.
26.8.11
CLARIFICATION – JEEVAN AROGYA – RECEIVED FROM CO, HI
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We hereby reproduce the Clarification received from HI Department of Central office on 28.07.2011.
In the Introductory circular by PD department ,( As per para 6 (c) of circular CO/PD/11 dt. 31-05-2011 ) it is mentioned as :
' If both parents (father and mother) are alive and and are eligible for cover then both of them will have to be covered or none of them will be covered.'
It is clarified that:
1.The policy conditions envisages that when both the parents ( or parents-in-laws) are eligible for cover both are to be covered or none of them will be covered.
2. If both the parents ( or parents-in-laws) are alive and one life is not eligible for the cover as per our U/W rules and the other life is eligible for cover, eligible life can be covered.(For reasons other than maximum age at entry they have to apply for cover and the corporation will decide the eligibility)
3. If both the parents ( or parents-in-laws) are alive and one life is not willing to take the cover for any reason we will not cover for both the lives.
Hence we request the Divisional offices to call for the Family history of the PI where cover is opted for Parents/Parents-in-law.
CLARIFICATION - JEEVAN AROGYA – CAT III, WIDOW.
Whether age restriction for Cat III Female is applicable for Jeevan Arogya also?
The matter was discussed with CO and we are informed that age restriction for Cat III female lives as specified in the earlier circular need not be applied to Jeevan Arogya.
Good explanations for all questions. Thank you to LIAFI coimbatore division.
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