Kathmandu. Life insurance requires the active role of the proposer, the agent and the insurance company.
The formal phase of life insurance begins when a person is planning to buy life insurance or when an agent has encouraged him to buy insurance. The proposer has to decide which company to buy the insurance plan from which company on the recommendation of the agent or voluntarily. After making this decision, you should complete the step of filling up the insurance proposal form from the agent you are in contact with or the branch office of the chosen insurance company. Along with the proposal form, the customer has to fill up the insurance identification form (KYC) and give it to the insurer.
Customer identification process
The insurer will first enter the details of the applicant including name, surname, gender, age, address, profession, e-mail, mobile number, bank account number, citizenship or national identity card number in the software. Once this is done, the software issues a customer identification number. All the details related to the rest of the process of issuance are integrated into the software through this identification number.
Risk Assessment Procedure
On the basis of the details mentioned in the proposal form, the branch manager and the risk assessment department of the insurer make a preliminary assessment of the risk attached to the insurance proposal proposal and recommend to go to the designated health institution or laboratory for health examination if the health examination report is required as per the prescribed criteria.
In the course of risk assessment, the source of income of the insured, the risk of the profession, the stability of the profession, the age, health status and the purpose of the insurance are carefully considered to decide whether to accept the proposal or not.
The insurer completes the underwriting process in the case of the insured who does not require the health examination report as per the predetermined criteria and decides whether to insure or not on the basis of medical advice after receiving the report in case of health examination report.
Reinsurance process
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In case of an insurer exceeding the retention limit on the risk of life insurance, the insurer should seek support from the reinsurer. Once the risk assessment report of the policy is made available to the reinsurer, the proposal is approved only if the reinsurer gives its consent. Otherwise, the insurer refuses to insure. Apart from this, the insurer also suggests that the insured should reduce the sum insured and insure only a small amount.
Steps to issue insurance
Once the decision is made to accept the insurance offer, the life insurer will inform the insured to deposit the amount of the premium first. The insured has to confirm the amount to be paid for the insurance policy and deposit it in the bank account of the insured or make the payment. Currently, the premium is to be paid through digital payment or online transfer.
Actuarial Transfer
After receiving the premium payment, the life insurer issues the policy. After the issuance of the policy, the insurer informs the insured through e-mail and SMS. After preparing the insurance file, the insurance company hands over the first premium receipt and policy to the insured or proposal. When the insured is away, the insurer’s employee or agent himself delivers the policy to the insured’s doorstep.
After paying the insurance amount, the insured should immediately get the insurance file from the insurer or agent. If you do not get the file, you should ask the insurer’s office.
Info
At the time of handing over the insurance file, the agent or the insurance staff should inform the insured about the terms and conditions of the policy in detail. In addition, information about the date and amount of insurance premium and how to pay should also be made easy. In this way, the insured does not have to forget to pay the premium or be deprived of the benefit.
Since the documents of the insurance policy are necessary to claim the services and benefits of the insurance, the insured should keep it safely.
