Recommend a specified insurance plan according to the needs and wants of the prospect.
Disclose the scales of commission in respect of the insurance product offered for sale, if asked by the prospect.
Indicate the premium to be charged by the insurer for the insurance product offered for sale.
Explain the nature the information required in the proposal form by the insurer.
Impress upon the prospect the need to disclose all information.
Make all enquiries about the prospect.
Inform the insurer about any material facts, including habits that could adversely affect the underwriting decision.
Convey to the prospect about the acceptance or rejection of the proposal.
Advise policyholders to effect nomination under the policy.
Render necessary assistance and advice to every policyholder on all policy servicing matters including assignment of policy,change of address or exercise of options under the policy or any other policy service, wherever necessary.
Render necessary assistance to the policyholders or claimants or beneficiaries in complying with the requirements for settlement of claims by the insurer.
Make every attempt to ensure remittance of premiums by the policyholders within the stipulated time.
By giving notice orally and in writing.
Not to induce prospects to submit wrong information or documents submitted to the insurer for acceptance of the proposal.
Not to interfere with any proposals introduced by any other insurance agent.
Not demand or receive from beneficiary share of proceeds under an insurance contract.
Not cause the termination of an existing policy with a view to effect a new proposal.
Principles of Insurance
- Principle of Uberrimae fidei (Utmost Good Faith): – According to this principle, both the parties i.e. the policyholder and the insurance company should have good faith towards each other. A person getting insured must disclose every fact and figure about the subject matter of insurance contract in the proposal form of insurance. The insurance company (or insurer) must also provide complete, correct and clear information regarding terms and conditions of the contract to the policy holder. In case of any concealment of fact or false statement, the insurer can declare the contract void and he will not be liable for paying any compensation. This principle is applicable to all contracts of insurance i.e. life, fire, marine, etc.
- Principle of Insurable Interest: – According to this principle, a person getting insured must have the insurable interest on the subject matter of insurance. In simple words, insurable interest is where a person has a valid reason to insure and stand to suffer a direct financial loss if the event insured against occurs. To express insurable interest, there must be something tangible that can be insured – such as property, life or rights imposed by law. If a thief in possession of stolen goods does not have the right to insure them. This principle is applicable to all contracts of insurance.
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