Insurance, at the very basic level, is an agreement between the insurer and the insured. This agreement is based on the information that the insured provides in the proposal form. Hence, this form becomes the single most important document in the whole insurance policy.
The insurance form varies from insurer to insurer, and needs to be filled either by pen or by typing (if it is an online policy). No matter how you fill it, it is imperative that that the form is filled by the one in whose name the policy will be, and not by the insurance agent. Some people sign the blank insurance form and hand it over to the agent, this is not the correct practice and can lead to regret later.
Care must be taken that the information provided is thorough and accurate, especially when it comes to your contact details, whether it's a health insurance policy, car or motorcycle insurance policy, or any other type of policy. Because, it is using these contact details that the insurer will contact you when a claim needs to be settled. Furthermore, insurance is based on the principle of good faith, so whatever information you provide must be true and complete, otherwise, it can lead to repudiation of your claim.
There are many points you need to take care of when filling the insurance proposal form, but here are some of the most crucial ones.
Correct Name
Your name is the most obvious thing that you need to get right. Remember that an agent can always misspell it, creating trouble for you. Attention also needs to be paid to the fact that it is written in block letters, so that the writing is clear and there is no case for misunderstanding. Ensure that the name is exactly the same as it is in your bank account.
Proper Address
Most people don’t pay attention to the small details, such as the difference between current and permanent address. Some people find it easier to write ‘same as current address’, in the permanent address column, even if their permanent address is different. This is especially true for those living on rent. Providing both addresses will ensure that you receive important correspondence on time.
Date of Birth (DOB)
Your age is a major factor when it comes to premium calculation. Hence, it is necessary to correctly write your DOB with supporting documents. The supporting document should preferably be either a school leaving certificate, passport or birth certificate as these are considered as standard proof of age. There are alternatives too, like PAN card, driving license and self-declaration etc. but these can attract extra premium.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.