An insurer can
choose to underwrite a risk purely on the basis of information declared
personally in a personal statements in the personal forms. This is a called non
medical underwriting . This comes under
the umbrella of “Uberima fides” the
principle of utmost good faith. This does not mean any lowering of standard of selections.
Coupled with the field representative’s
like agent field officer’s report the
personal can be accepted. The claim experience under non medical is generally
not unfavorable . We have a lot of saving in cost due to medical
fees, hassles avoided for the proposer , simplicity in forms etc.,
SAFEGUARDS IN NON MEDICAL UNDERWRITING: The
information given by the proposer in the
personal form in is checked by agent field officer from the their personal
knowledge . In additional they give a
special report called confidential report . In case the proposer is an employee
in an organizations , it is possible to check the details with his employees if
required, If the proposer is a female , the
insurer can insist on certain
minimum educational qualification if she
is not employed. Normally an insurer may
grip give up to Rs. 50,000 for un employed persons and Rs. 1,00,000 for other
male lives under what can be called as, non medical general category up to the age of 40. There can be another category called non
medical special, which is a meant for the both male and female employed
category up to the rs. 8,00,000 . Age
restrictions can be there up to
age of 45. Special categories of people
can be considered under non medical scheme
like people working in defense
service and also professional like doctors, engineers, chartered
accountants, architects etc., Here the sum assured can go up to the Rs.
8,00,000.
Similarly ladies who are
income tax payees in view of their income from rentals, business, investments
etc., Provided they are fairly educated can be
considered under non medical categories
. There can be a few restrictions with regard to the products, term maximum
maturity age, etc., depending on the life.
Age being the basis of premium calculations has to be the proved beyond doubt by the
means of evidences like the school leaving
certificate , employer’s
certificate passport etc.,
MEDICAL UNDERWRITING: Beyond
the non medical limits it is necessary to take the help of a medical
report to assess the risk. The non medical
format takes care of the factors that a person should normally be aware
of the whereas the medical format goes to the beyond it to give the insurer
certain vital information. After the field worker’s initial scrutiny hence they
are called the primary underwriters , comes the role of a medical examiner in
assessing the risk. The examination brings out certain information that the
proponent may be knowing but still intentionally trying to suppress it or he may not be revealing
them inadvertently or he may be a it is the ignorant of that information.