Practices of Life Insurance- Life Insurance- Procedure & Documents List of Documents First Premium Receipt (FPR) Policy Bond Renewal Premium Receipt Renewal Premium Notice Bonus Notice Claim Settlement Form

1. TRINITY INSTITUTE OF PROFESSIONAL
STUDIESSector – 9, DwarkaInstitutional Area, New Delhi-75
Affiliated Institution of G.G.S.IP.U, Delhi
BBA (B&I)
Practices of Life Insurance
(18305)
Life Insurance- Procedure &
Decuments
By: RatikaMalhotra

2. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, DwarkaInstitutional Area, New Delhi-75
Documents
The contract is entered into by two or more
people under Indian contract act.
For life insurance various documents are
required when a person takes insurance and
also through out the tenure of the policy.

3. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, DwarkaInstitutional Area, New Delhi-75
List of Documents
1. Proposal Form
2. First Premium Receipt
3. Policy Bond
4. Renewal Premium Receipt
5. Renewal Premium Notice
6. Bonus Notice
7. Claim Settlement Form

4. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, DwarkaInstitutional Area, New Delhi-75
The first document in insurance is the proposal
and is treated as the basis of the contract.
Proposal from include the following details:
• Identity of proposal
• Previous policy
• Family history
• Occupation
• Income
•Previous Policies
•Choice of plan
•Term
•Sum Assured
•Mode of premium

5. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, DwarkaInstitutional Area, New Delhi-75
First Premium Receipt (FPR)
FPR is issued after the underwriter gives the decision of
acceptance. FPR gives the date of decision.
FPR will give the date of commencement of the risk.
FPR does not give the terms of the contract.
FPR also is helpful to create the policy master. Once the
FPR is issued the insurer is bound by his decision till
the date of claim.

6. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, DwarkaInstitutional Area, New Delhi-75
Policy Bond
It is the evidence of contract. The policy has many parts:
a) Heading
b) Preamble
c) Operative Clause
d) Proviso
e) Schedule
f) Conditions & Priviledges
g) Attestation
h) Any Endorsement

7. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, DwarkaInstitutional Area, New Delhi-75
Renewal Premium Receipt
• This receipt confirm that the insurance cover is
continued for a further period.
• All life insurance contract are for long time
and insured have the option to pay the
premium on a selected frequency.

8. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, DwarkaInstitutional Area, New Delhi-75
Renewal Premium Notice
• Once the policy is issued , policyholder is
required to pay premium as and when they fall
due. No reminder would be necessary.
• However the insurer may send notice to
remind him that the premium has fallen due.
• There is no legal obligation to issue the
renewal notice. However as a matter of
courtesy, the notice is issued.

9. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, DwarkaInstitutional Area, New Delhi-75
Claim settlement is one of the most important services that an insurance
company can provide to its customers. Insurance companies have an
obligation to settle claims promptly. Documents that need to be submitted
are:
• Policy number.
• Date & Time of loss
• Reason of Loss
• Death Certificate (for death claim)
• Age Proof
• Deed of Assignment (if any)
• Evidence of Title
• FIR
• Post Mortem Report

10. TRINITY INSTITUTE OF PROFESSIONAL STUDIES
Sector – 9, DwarkaInstitutional Area, New Delhi-75
Bonus Notice
• The bonus notice is issued to inform about the amount of
bonus vested in the policy as on the date of valuation on
condition that the premium is paid till the date of valuation.
• Notice of bonus may not be issued for all the policyholders
due to shortage of time and money.
• Publicity is given in the newspaper also.
• Another method is to show the bonus vested in the renewal
premium notice itself.