NAME: HIRAL JETHWANI

ROLL NUMBER: 2224113

DIVISION: B
ASSIGNMENT 1: PROPOSAL FORM UNDERWRITING
SUBJECT: LIFE INSURANCE PRODUCTS AND THEIR
UNDERWRITING
SUBMITTED TO: Mr. SANDEEP PANDE
Proposal form underwriting of life insurance by LIC

Basic information from the proposal form:

1. Full name and address of the life to be assured
 Insurer should check full name and other details of the
life to be insured.

2. Nationality
 Nationality of the insured to be checked to know that
whether the insured is Indian or NRI.

3. Gender
 Gender should be checked whether it’s male or female or
third gender.

4. Date of birth
 One of the important factors to be considered for
calculating premium.
 If the insured is young then he will have to pay lower
premium as compared to the insured who is at an old age
as his risk of dying is more.
 Age should be checked and the birth date should be
written in the form of age nearer birthday and nature of
age proof should also be submitted by the insured.

5. Residential proof
 Insurer should know whether the insured lives in the area
which is hazardous to his health in order to check how
much he is exposed to the risk.
 Example, living in the area which is more exposed to
earthquake, living in hilly area, etc. Because the
premium for the same will depend on that as well.

6. Hobbies
 Hobbies of insured like mountaineering, swimming,
sports person, scuba diving, paragliding, etc. should be
considered.
 This helps in risk assessment in a proper manner.

7. Nominee’s full name

 There should be a name of nominee who will receive the
sum assured after the death of the policyholder.

8. Plan and term

 Proper insurance plans like whole life insurance policy,
term life policy, endowment policy, etc should be
mentioned along with the term thereof.

9. Sum assured
 It is the most important factor for both the parties which
is decided on the basis of information given by the
insured in the proposal form.
 Also, one of the methods to calculate the sum assured is
human life value (HLV) method for which expenses and
income of the insured is taken into consideration.

10. Riders
 If inured wants any rider from critical illness, accidental
death rider, premium waiver, term rider, etc then he must
state the same in the form.

11. Mode of premium payment

 Premium can be paid monthly/quarterly/half
yearly/yearly or single premium.

12. Present occupation

 A must require information in order to know whether the
insured is exposed to more hazardous occupation like
working in a construction or steel or chemical factory.

13. Educational qualification and income

 Education and income details as well as other sources of
income should be mentioned in order to check the
premium paying capacity of the insured.

14. Details of previous insurance

 Non-disclosure or improper disclosure regarding existing
policies at the proposal stage could lead to over-
insurance.
 Hence details of other policy taken should be mentioned
so that principle of utmost good faith is to be maintained.

15. Family history

 This is because some illnesses can be hereditary. Insurer
considers such cases carefully and include this point
during the risk assessment process.
 However, all family histories need not have a negative
impact. Only certain types, especially genetic, are viewed
as bad risk.

16. Personal history

 If an applicant has a history of illness, the premium may
go up slightly. The kind of illness is also important. If it
is a minor problem such as kidney stone, there will be no
impact on the risk profile.
 Insurance companies do cover these diseases, but charge
more and put restrictions on waiting periods.
 If insured is under regular treatment, the cover may be
deferred for a short period for proper assessment of risk.

17. Consumption of alcohol or smoke

 As such things may have a bad impact on insured’s
health.

18. Other information for females

 Information related to pregnancy and other details.

19. Declaration
 Insured and insurer must follow the principle of utmost
good faith and provide all the material facts as and when
required.