You must check and see whether or not there is availability of guarantee of return, what is the lock in period, details of premium to be paid, what would be implications of premium default, what are the revival conditions in case of lapse of the policy, what are the charges that would be deducted, whether loan facility is available and other terms and conditions of the policy.

It is to be noted that all the disclosures made in a proposal are the basis for underwriting of the policy and therefore any wrong statements or disclosures can lead to denial of   coverage  at the inception of the policy, cancellation of the policy during its currency  or rejection of claim after death of the life assured. So, it is very important that the proposer should disclose all the material facts like health status, age, income details and smoking habits and make correct statements in the proposal form.

Usually the Insurance Company will send intimation attaching the discharge voucher to the policy holder at least 1 to 2 months in advance of the date of maturity of the policy intimating the claim amount payable. The policy bond and the discharge voucher duly signed and witnessed are to be returned to the insurance company at the earliest so as to the insurance company to release maturity payment tin time. Please note that if the policy is assigned in favour of any other person, the claim amount will be paid only to the assignee who will also give final discharge.

The basic documents that are generally required are death certificate, claim form and policy bond, Other documents such as medical/hospital records, employer's certificate, police inquest report, post mortem report etc could be called for, as applicable. The claim requirements are usually disclosed in the policy bond.

The policyholder has a free look period of 15 days (30 days in case of electronic policies and policies obtained through distance mode) from the date of receipt of the policy document, to review the terms and conditions of the policy and if the policyholder disagrees to any of those terms or conditions, he has the option to return the policy to the insurer for cancellation of the policy and get full refund of premium paid.

ULIPs offered by different insurers have varying charge structures. Broadly, the different types of fees and charges include Premium allocation charges, Mortality charges. Policy administration charges, surrender charges, fund switching charges etc. However, it may be noted that insurers have the right to revise fees and charges over a period of time.

The portion of the premium after deducting all the charges including charges for risk cover of life assured is known as Unit fund and the same is invested in equity or debt as per choice of the proposer. At the time of maturity, unit fund is paid to the policyholder. 

Yes, one can invest additional contribution over and above the regular premiums subject to the feature being available in the product. This facility is known as “TOP UP” facility.

As per norms, death claims under a life insurance policy shall be settled within 30 days from the date of receipt of all relevant papers and required clarifications. However, where the circumstances of a claim warrant an investigation in the opinion of the insurer, it shall initiate the same at the earliest and complete such investigation expeditiously, in any case not later than 90 days from the date of receipt of claim intimation and the claim shall be settled within 30 days.

Thereafter:

In respect of Maturity or claim Survival Benefit claims and Annuities, Insurance Company shall initiate the claim process by sending intimation sufficiently in advance or send post-dated cheque or give direct credit to the bank account of claimant through any electronic mode as approved by RBI, so as to pay the claim on or before the due date.

Yes, in respect of any death claim or maturity claim, if there is delay on the part of Insurer beyond the timelines earmarked by IRDAI, the insurer shall pay interest at a rate, which is 2% above bank rate, from the date of receipt of last necessary document

No. It is not mandatory. However, securing the property financed under loan, either by way of insurance or other modes, is the prerogative of the lending institutions concerned which may be  as per terms and conditions of the loan or may be as per the directives if any, prescribed by the regulator (RBI) governing the lending institution.

Although, IRDAI has not imposed any limits on cash payment. However as per RBI guidelines, cash payments beyond Rs.50000 should always be accompanied by PAN.

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Government subsidized Pension Scheme for Senior Citizens aged 60 years and above, in which proposer can deposit an amount not more than 15 lakhs for receiving monthly/quarterly/yearly pension varying from Rs. 1000 to 10,000 depending upon amount deposited. The term of the scheme is 10 years. The interest rate contracted at the time of purchase of the policy will remain the same for the entire ten years of the policy term. For the current year (2020-21) the rate of interest is 7.4%. So, it will be assured return of 7.40% p.a. payable monthly (equivalent 7.66% p.a.) for the full term of 10 years in case of policies purchased during 2020-21.

An insurance agent can represent only one insurer and do business for him. An insurance Broker is basically the representative of the customer and can sell the policies of more than one insurer. In the Indian context an Agent can represent one Life insurer, one Non-Life insurer and one Health insurer. In addition he can represent one credit insurance company and agricultural insurance company too.

The objective of the Insurance Ombudsman Rules is to resolve all insurance related   complaints in a cost effective, efficient and impartial manner.

Complaints may pertain to:-

a)      Partial or total repudiation of claims.

b)      Any dispute regarding premium paid or payable in terms of the policy.

c)      Any dispute about the legal construction of the policy relating to claims.

d)     Delay in settlement of claims.

e)      Non-issue of any insurance document to customers after receipt of premium.

These rules are called Public Grievances Rules – 1998 and were notified by Government  of India and published in the Gazette of India on 11.11.1998.