Kathmandu. It is the responsibility of the insured to ensure the continuity of the policy throughout the term of the policy. In particular, life insurance is issued for a long period of time. It has been decided when the insured will deposit the amount of the insurance premium at the time of purchasing the insurance policy. The insured has to continue paying the premium within the stipulated period and date.
If the installment is not paid regularly, the insurance policy will expire. Apart from the date on which the installment amount is to be paid, the insured is also given a moratorium period. It is 30 days for annual or half-yearly payment method and 15 days for quarterly or monthly installment payment.
After the maturity period is over, the insurance policy is in a lapse mode. After 6 months from the date of payment of the policy, the policy becomes fully expired. In such a situation, in the case of a life insurance policy, the insured or his/her preferred or legal heir will not be able to pay the claim under the terms of the policy. This situation will continue until the insurance policy is revived.
The insured should submit an application to the insurance company with a self-declaration or medical examination report regarding his or her health condition, depending on the period elapsed for the revival of the policy. During the revival, the insured should pay all the premiums for the past period that are due to be paid. The insurance company also collects the additional amount of compensation and interest from the insured on the basis of the period of expiry of the policy. This amount is equivalent to a fine for not paying regular installments.
Once the policy is passed, the right to decide whether or not to revive during the revival rests entirely with the insurer. If the health condition of the insured is found to be deteriorating or it is proved that he is suffering from a serious disease, the insurer may reject the proposal of reinstatement of the policy.
The physical or health condition of the insured may have changed at the time of revitalization of the policy compared to the time of the insured. Due to age, lifestyle or accident, there is a possibility of such a condition. If there is a different physical condition or health condition than before, the insurance company can add additional premium. This puts the insured at risk of losing the policy.
Therefore, all the three parties of the insured, the agent and the insurer should pay attention to the following aspects to avoid the situation of expiry of the policy:
1) At the time of sale of the policy, the agent shall offer a suitable policy according to the actual earnings and capacity of the insured
.
2) The agent will assist in determining the insured by making an appropriate assessment of the ability of the insured to save on a
regular basis.
3. Clearly mention the insured’s contact details, name, address, mobile number, email address, alternate mobile number in the insurance policy proposal
4. Mention the full name, address, mobile number and email address of the insured person in
the offer of the policy.
5. If the insured changes his/her mobile number or email address, the insured shall immediately update the new mobile number by filling up the insured identification form
6. If the insured is going to go abroad for a long time, inform the insurer and ensure that the renewal notice will be compulsorily received through email
7. To inform the insured on email and mobile number at least 3 times from 15 days prior to the payment date of renewal install
ment.
8. The insurer shall contact the insured by telephone through Customer Service Center and inform them about the amount of renewal installment and the date of payment
of installment.
9) The agent should be in regular contact with the insured and inform them about the date of payment
of installment.
10. Do not contact the insured only at the time of sale of the policy, but will be in contact with the insured through some means at least throughout the insurance period. For this, it is easy to stay in touch with the insured through the exchange of festive wishes, birthday wishes of the insured, information about new insurance policy, information about the progress of the insurance company, etc.
11. The business agent not only sells the insurance policy but also to maintain public relations and regularly visits the insured’s door to door or office for long-term affiliation, inquiring about the status of the insured. It is easy to help the insured by providing appropriate financial advice when needed. Apart from this, it is also easier for the agent to take advantage of new insurance opportunities by being aware of changes in the financial or family status of the insured.
