Kathmandu. Life insurance requires the active role of all the three parties who want to insure, the intermediary i.e. the agent and the insurance company.
The formal phase of life insurance begins after a person is thinking of life insurance or when an agent has motivated him to insure.
The proposer has to decide which insurance plan to purchase from which company voluntarily or on the suggestion of the agent. After taking such a decision, you have to complete the stage of filling the insurance proposal form received from the branch office of the agent or the chosen insurance company who is in contact with you. Along with the offer form, the customer should also fill the necessary details and give the insured identification form (KYC).
Customer identification process:
Along with the proposal, the insurer of the KYC form will first enter the details including the applicant’s name, surname, gender, age, address, profession, email, mobile number, bank account number, citizenship or national identity card number in the software. After this work is done, the software releases the customer identification number. And, all the details related to the rest of the process of issuing the policy are arranged in the software to be integrated through this identification number.
Process of risk assessment:
Based on the details mentioned in the offer form given by the customer, the branch manager of the insurer and the Department of Risk Assessment make a preliminary assessment of the risk associated with the insurance proposal. And if the health examination report is required according to the prescribed criteria, then it is suggested to go to the designated health institution or laboratory for health check-up.
In the course of risk assessment, it is customary to decide whether or not to accept the proposal by carefully examining the source of income of the insured, the risk of the profession, the stability of the profession, age, health status, the purpose of insurance, etc.
The insurer completes the process of underwriting in the case of the insured who does not need a health examination report, according to the pre-determined criteria, and in the case of the need for a health examination report, after receiving the report, he decides whether or not to insure it on the basis of medical consultation.
Process of reinsurance:
In the case of insurance exceeding the retention limit in life insurance risk assessment, the insurer should get 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 has consented. Otherwise, the insurer refuses to insure. Apart from this, the insurer suggests that the insured should reduce the sum assured and insure only a small amount.
Step of issuing insurance:
After the decision to accept the insurance offer is made, the life insurer notifies the insured to deposit the amount of the first insurance fee. The insured must deposit the amount to be paid for the policy and deposit it in the bank account of the insurer or make the payment. In case of less than Rs 100,000, the insurance fee should be paid by making a bank account, cheque, digital payment or online transfer.
Policy transfer:
After receiving the insurance payment, the life insurer issues the policy. After the issuance of the policy, the insured is informed by the insurer with the policy number through email and SMS. After preparing the file of the policy, the insurance company hands over the first insurance fee receipt and insurance policy to the insured or proposal. When the insured is far away, the employee or agent of the insurer himself delivers the insurance to the insured’s doorstep.
After paying the amount for the insurance, the insured should immediately receive the policy file from the insurer or agent. If you do not get the file, you have to inquire at the insurer’s office and ask for it. In the event of cash payments, sometimes the insurer’s employee or agent may have used this amount for personal work, so the insured should be careful not to do so.
Insurance information:
While handing over the policy file, the insured should be informed in detail about the terms of service of the policy by the agent or the insurance employee. In addition, information should also be made easier on which date and how much amount and how to pay the insurance fee. In this case, the insured should not forget to pay the insurance fee or be deprived of the benefits.
Since the insurance document is essential to claim the services of insurance, it should be kept safely by the insured.
