STC, CUTTACK

What is the need for underwriting ?

Underwriting is needed to assess the risk
& to decide whether risk is acceptable at
Standard rate or with extra premium or
with some restrictions or to decline the
risk.
Once the nature of insured live is decided
PREMIUM will be charged accordingly
Premiums will be charged either less or more

A lower premium affects the solvency of the fund

& cost of additional risk have to be borne by the
rest of the policyholders.

i.e. If lower premium is charged, Insurer’s

claim experience will not be as anticipated &
it will have adverse effect on Insurer’s funds
to meet the additional claims & profits.
 Contd.

A higher premium charged would

not be fair to the proposer

Insurance cover will not be allowed

to proposer at appropriate rate

Insurance may be given to a person

who is uninsurable{anti selection}
If there are no additional risk factors
(adverse features) affecting mortality then
the proposal will be accepted at Ordinary
Rate (O.R.) or Standard Rates.

If there are additional risk factors (adverse

features) proposal will be accepted with
suitable extra premium/restrictions
(modified terms) or declined.
Hazards – These are the factors which affect the
risk. They are as follows.
Proponents involved in above jobs are prone to accident.
Nature & place of job have effects on the expectancy of longevity
of the worker.
eg. 1) Inhalation of dangerous fumes. Therefore people
working in chemical factories are likely victims of
various respiratory diseases such as Tuberculosis or
Asthma.
2) people working with high voltage electricity are
prone to electrocution & burns.
3) People working in mine industries
4) Driver- Public Carriers (Passenger/Goods with National
Permit
Suitable extra premiums are charged.
It refers to the intention of the proposer.

It exists when the intention is to take undue advantage.

It has to be judged with reference to life style, income,

socio economic status, reputation , need for insurance
etc.
It is not measurable.
If moral hazard is suspected, assess no amount of extra
premium & the proposal has to be DECLINED
First insurance for large amount at advanced age.

Large insurance with inadequate income.

widow with no income & having major children.

Insurance proposed by someone on the life of another
without insurable interest.
Nomination in favor of a stranger.
Medical examination at place other than residence or
office place.
 Moral Hazard Report
Up to SUC of
• Authorized Agent 05 lac
[ Performance for each of previous 3 FYs ]
[ Net No. Of Lives – 15 ; Net SA – 6 lac ]
• Distinguished & BM Club 20 lac
• DM`s club member/Specified (CORP.AGT) 40 lac
• ZM`s club member 60 lac
• Chairman`s club member/
MDRT qualified /COT/TOT/
Club Galaxy 01 crore
Member Of Corporate Club 1.5 crore
Dev. Officer 1.5 crore
SBA 03 crore
Retired Employees/CLIA(DM Club) 75 lac
CLIA ZM Club Member 01 crore
CLIA CM Club Member 1.25 crore
CLIA Corporate Club Member 1.5 crore
BM(S)/ABM(S) 04 crore
Sr/BM 05 crore
Manager (Sales) 10 crore
Marketing Manager 10+ crore
OTHER RULES: SPL MHR FORM IN 3251 MAY BE OBTAINED WHERE SUC > 50 LACS
NO MHR IS REQUIRED FOR PROPOSAL UPTO SA 2 lacs
MHR LIMIT FOR WATCH LISTED AGENT WILL BE ONE STEP BELOW AS IN CHART.
 FINANCIAL UNDERWRITING

Assessment of proposer’s financial status.

It is necessary to check whether income is

sufficient to support the insurance.

The source of income, age & amount of

insurance plays a vital role.
 FINANCIAL UNDERWRITING
Purpose of financial underwriting-one of the
indicators of moral hazard is the size of
insurance proposed compared income. The
extent of insurable interest of a person in his
own life is unlimited . The extent of insurable
interest is not limited to his current levels of
income because it is assumed that these
levels can go up any time.
 FINANCIAL UNDERWRITING
If someone else is paying for it, there could be
issues of wagering and insurable interest. The
need for insurance has to be related to current
situations and not to a desirable situation of the
future. When the premium paid is large
compared to the income, there are possibilities
of heavy lapses, higher claims, money laundering
and fraud.
 FINANCIAL UNDERWRITING

Making a judgment on
these financial aspects is
called financial
underwriting
 MAXIMUM INSURANCE COVER[TRSA]
AGE GROUP OF THE MAXIMUM COVER ALLOWED AS
MULTIPLE OF ANNUAL INCOME [AVR 10
PROPONENT LACS & > ]

AGE UPTO 35 YEARS 30 TIMES

36 YRS TO 45 YRS 25 TIMES
46 YRS TO 50 YRS 20 TIMES
51 YRS TO 55 YRS 15 TIMES
AGE 56 YRS & ABOVE 10 TIMES
 MAXIMUM INSURANCE COVER[TRSA]
AGE GROUP OF THE MAXIMUM COVER ALLOWED AS
MULTIPLE OF ANNUAL INCOME
PROPONENT [AVR 10 LACS & LESS ]
AGE UPTO 35 YEARS 25 TIMES

36 YRS TO 45 YRS 20 TIMES

46 YRS TO 50 YRS 12 TIMES

AGE 56 YRS & ABOVE 10 TIMES

 Standard Income proof
Income Tax return or IT assessment order.

Salary certificate by employer.

Audited company accounts.

Audited firm accounts together with
partnership deed.
 Non Standard Income proof
Chartered accountant certificate containing PAN
of proposer.

Land revenue records in form no. 7/12 extract and

certificate of Tehsildar regarding crop pattern
indicating crop yield.

Personal financial questionnaire and copy

of Bank a/c statement.
 PROOF OF INCOME
TOTAL RATED UP PROOF OF INCOME REQUIRED
S.A.(PROPOSED+EXISTING)

TOTAL S.A. DOES NOT EXCEED RS. PROPOSAL CAN BE CONSIDERD ON

25 LACS(Other than TRM ins & TR) THE BASIS OF INCOME SHOWN IN
P.F .Q WITH MHR

TOTAL S.A. EXCEED RS. 25 LACS NON STANDARD INCOME PROOF

BUT IT IS UPTO RS. 50 LACS(Other FOR THREE YEARS OR P.F.Q WITH
than TRM ins & TR) SPECIAL MHR.

TOTAL RATED S.A. EXCEED RS. 50 STANDARD INCOME PROOF FOR

LACS. THREE YEARS.
 INSURANCE TAKEN FROM
OTHER INSURANCE
COMPANIES
• Insurance taken from other
insurance companies will not be
taken into account while
calculating SUC for the purpose
of MR ,special reports, MHR limits
& underwriting authority.
INSURANCE TAKEN FROM OTHER
INSURANCE COMPANIES
• However, for financial same will be taken
into account for deciding maximum
eligibility

• Hence it is mandatory to give details of

insurance from other companies.
 AGE PROOF
STANDARD AGE PROOF
Birth Certificate issued by municipal authorities.
Baptist
School or college certificate
Service Record
Identity Card issued by Defence Deptt.
Marriage certificate issued by Roman Catholic
Passport
 STANDARD AGE PROOF
PAN
DRIVING LICENCE

Aadhar Card (with DOB)

Horoscope maintained by a Hindu family in

a Bahi or family horoscope book provided
Manager[NB] is satisfied.
 NON STANDARD AGE PROOF
ESIS CARD

Marriage certificate (Nikha Nama)

Service Record where only year is mentioned

Election Identity Card if date of issue of the card is
available
Certificate issued by Village Panchayat
 NON STANDARD AGE PROOF

Elder’s Declaration [F.No-3261]

Self Declaration Stamped [F.No-5220]

Self Declaration Unstamped [F.No-5096]

Ration Card issued originally ,clearly mentioning the

date of issue[Ration Card…….
 NON STANDARD AGE PROOF
Where date of issue is not available or not
legible or altered or duplicate ration card or
renewed ration card will not be accepted as
Age Proof

Any other proof not classified as

standard as above
 NON STANDARD AGE PROOF
Restrictions-

Age Proof Extra @ Rs.1.50%0

Higher Term Assurance element, Term Rider not
allowed
Max. age at entry-50 years [nbd]

Max . Policy term-25 years

 NON STANDARD AGE PROOF
Max. Maturity Age-65 Years
If the month of birth alone is stated
th
then 15 of the Month stated to be
taken
If the Year of birth alone is stated
then 1st July of the Year to be taken
 DATE OF UNDERWRITING
Proposal form – provides the information about proposer, his
health, habits, personal history & family history & income.
Medical Report – It provides the information about the proposer’s
physical condition and statement of proposer regarding past illness.
Agent’s confidential report & Moral Hazard report
In case of large Sum Assured, special reports & Special Moral Hazard Report
containing information about life style, Social status, health, habits, occupation &
income from senior officials are called for.
F.M.R. conducted by D.M.R. is required if SUC Rs. 25 lacs or more
or age LBD of proposal is 60 Yrs or more & SUC Rs. 5 Lacs or more.
Reimbursement of fee for MR & Spl. Report should not exceed Rs. 4
%0 on accepted sum assured .
S.U.C(SUM UNDER CONSIDERATION)

* SUC = Rated up S.A. INCLUDING

CURRENT PROPOSALS + POLICIES
TAKEN IN LAST TWO FULL
YEARS ON BASIS OF Date
of commencement
S.U.C(SUM UNDERCONSIDERATION)
Sum Under Consideration – the SUC is the sum of
ASA under all the current proposals and policies
taken in last two full yrs. on the basis of DOC. For
example, if the date of current proposal is
between 1st and 31st July2017, SUC will be ASA
under current proposals and all previous policies
from 1st July 2015 till the date of current proposal
 Contd.

Depending on the sum proposed the proposal will be underwritten

at different levels as follows. ( Standard Life)
Sum proposed Level

Up to 30 lacs Branch office/SO/BMC

Up to 40 lacs Divisional office
Up to 1.5 crore Zonal office
Above 1.5 crore Central office
For Sub standard lives financial powers will be 50%
of as mentioned above.
 SUM PROPOSED INTRODUCTION BY
UPTO 20 LACS ALL AGENTS
UPTO 30 LACS ZM CLUB MEMBER
UPTO 50 LACS CM CLUB MEMBERS/MDRT QULI.
UPTO 1 CRORE CORPORATECLUB MEMBERS
MORE THAN AGENTS DEV.OFFICER /ABM (S) FOR Direct Agents
LIMITS & UPTO 1 CRORE

UPTO 2 CRORE ABM(S)

UPTO 5 CRORE BM/SBM
LESS THAN 10 CRORE MANAGER (SALES)
10 CRORE AND ABOVE MARKETING MANAGER
 SPL.Report for NMS & NMGP CHART-I(Revised)
S.U.C. Upto 35 Yrs 36 to 45 Yrs 46 to 50 Yrs 51 to 55 Yrs 56 to 60 yrs
Upto 2 Lakh N NON MEDICAL FMR
NON
2,00,001 to
10,00,000
O NM for NMS
FMR ECG,FBS
,ipidogram,RUA,Hb%
N FMR for NMGP
10,00,001 to M ECG, RUA,RUA ECG, SBT ECG,SBT-13, RUA,
15,00,000 MEDICAL 13,RUA,Hb% Hb%
E
15,00,001 to D NM for NMS ECG, RUA,RUA ECG,SBT- ECG,Haemogram,SBT
20,00,000 13,RUA,Hb% -13,RUA,Hba1c
I
FMR For NMGP
C
20,00,001 to
A FMR ECG,SBT- ECG,Haemogram,S ECG,Haemogram,SBT
25,00,000 L 13,RUA,Hb% BT-13,RUA, -13,RUA,Hb,A1c

25,00,000 to NM for NMS SBT-13,RUA, ECG,,SBT- ECG,Haemogram,S ECG,Haemogram,SBT

30,00,000 13,RUA,,HB% BT13,RUA,,HB,A1c -13,RUA,HB,A1c,
FMR For NMGP

30,00,001 to ECG, SBT ECG,Haemogram,S ECG,Haemogram,S ECG,Haemogram,SBT

50,00,000
FMR 13,RUA,Hb% BT13,RUA,CTMT,H
BA1c,
BT13,RUA,CTMT,H
BA1c,
13,RUA,CTMT,HB,A1c
 SPL.Report for other than NMS & NMGP CHART-II(Revised)
S.U.C. Upto 35 Yrs 36 to 45 Yrs 46 to 50 Yrs 51 to 55 Yrs 56 & Above

Upto 2 Lakh FMR ECG,FBS

2,00,001 to RUA,FBS ECG,FBS

3,00,000 NON ,ipidogram,RUA,Hb%

3,00,001 to
5,00,000
MEDICAL
FMR ECG, RUA,FBS ECG,FBS, RUA,
Hb%,lipidodgram

FMR
5,00,001 to NM for STD AP RUA,FBS ECG,FBS,RUA,Hb%, ECG,FBS, RUA,
8,00,000 lipidodgram Hb%,lipidodgram
FMR non std AP

8,00,001 to FMR ECG,SBT- ECG,SBT- ECG,SBT-13,RUA,Hb%

15,00,000 13,RUA,Hb% 13,RUA,Hb%

15,00,000 to ipidodgram,RUA,Hb SBT-13,RUA, ECG,,SBT- ECG,Haemogram,S ECG,Haemogram,SBT

30,00,000 %,Elisa for HIV 13,RUA,,HB% BT13,RUA, -13,RUA,HB,A1c,
 SPECIAL MEDICAL REPORT CHART-II(Revised)
S.U.C. Upto 35 Yrs 36 to 45 Yrs 46 to 50 Yrs 51 to 55 Yrs 56 & Above
30,00,001 to ECG,SBT- ECG,SBT- ECG,SBT- ECG,SBT- ECG,SBT-
50,00,000 13,RUA,Hb% 13,RUA,Hb%,Hba1c 13,RUA,Hb% 13,RUA,Hb% 13,RUA,Hb%
Hba1c,CTMT Hba1c,CTMT,Haem Hba1c,CTMT,Haemogr
ogram am

50,00,001 to ECG,SBT-13,RUA, ECG,SBT- ECG,SBT- ECG,SBT- ECG,SBT-

100,00,000 Haemogram 13,RUA,Haemogram,Hb 13,RUA,Haemogra 13,RUA,Haemogra 13,RUA,Haemogram,H
a1c,CTMT m,Hba1c,CTMT m,Hba1c,CTMT ba1c,CTMT

100,00,001 to ECG,SBT13,RUA,H ECG,SBT- ECG,SBT- ECG,SBT- ECG,SBT-

25 crores aemogram, 13,RUA,Haemogram,Hb 13,RUA,Haemogra 13,RUA,Haemogra 13,RUA,Haemogram,H
Hba1c a1c,CTMT m,Hba1c,CTMT m,Hba1c,CTMT ba1c,CTMT,Chest X
ray

25 crores to ECG,SBT- ECG,SBT- ECG,SBT- ECG,SBT- ECG,SBT-

39.99 crores 13,RUA,Haemogra 13,RUA,Haemogram,Hb 13,RUA,Haemogra 13,RUA,Haemogra 13,RUA,Haemogram,H
m,Hba1c,CTMT a1c,CTMT m,Hba1c,CTMT m,Hba1c,CTMT ba1c,CTMT,Chest X
ray

> 40 crores & ECG,SBT-13,RUA,Haemogram,Hba1c,CTMT,Chest X ray,Anti HCV,USG abdomen & + PSA test for male
above pelvis,Spot urine Micro-albumin,2D Echocardiogram with Doppler lives
SPECIAL MEDICAL REPORT CHARTfor Juvenile lives(Revised)
Sum Assured Below 5 years
Up to Rs. 8 lakhs No medical required,Copy
of latest school report,if
attending school.
Rs. 8 lacs to 25 lacs i) Juvenile FMR
ii) Immunization record of
child
iii) Copy of latest school
report if attending.
5 to 9 years 10 to 17 years
No medical but height and weight to No medical but height and
be mentioned in ACR, weight to be mentioned in ACR,
copy of school report Copy of school report
No medical but height and weight to i) Juvenile FMR
be mentioned in ACR,
copy of school report i) Copy of latest school
report
SPECIAL MEDICAL REPORT CHARTfor Juvenile lives(Revised)
Sum Assured Below 5 years 5 to 9 years 10 to 17 years

Rs. 25 lakhs to 49,99,999 i) Juvenile FMR i) Juvenile FMR i) Juvenile FMR

ii) Immunization record of ii) Copy of latest school report ii) Copy of latest school
child /college report
iii) Copy of latest school
report if attending.

Rs. 50 lacs & above i) Juvenile FMR i) Juvenile FMR i) Juvenile FMR
ii) Immunization record of ii) ECG ii) ECG
child iii) Haemogram iii) Haemogram
iii) Copy of latest school iv) Serum creantine iv) SBT-13
report if attending. v) RUA v) RUA
vi) For ELISA test for HIV vi) Copy of latest school
vii) HBsAg report
viii) Copy of latest school report
 Now the physically handicapped persons are classified
into 6 groups as shown below:-

• PH Group I :- Proponent with physical impairments as a result of

accident.
• PH Group II :- Proponents with P I due to cerebral palsy
• PH Group III:- Proponents with P I due to polio
• PH Group IV:- Proponents with P I due to muscular dystrophy
• PH Group V:- Proponents with congenial P I
• PH Group VI:- Proponents with P I as a result of underlying
diseases
• Proposals from PH Persons decided in the DMR guidelines
 PHYSICALLY HANDICAPPED LIVES/DEFORMITY CASES
• Classified into Six groups
• Proposal can be entertained only if LA is gainfully
employed
• LA with loss of one limb and Poliomyelitis are treated as
Standard lives
• Compulsory Medical Examination & Divl. Office to
underwrite
• Deformity Questionnaire & CNS Questionnaire to be
submitted for all cases
• Branch Office can underwrite for loss of one limb due to
accident (CNS Quenr. not needed)
• # CNS- Central Nervous system
 EXTRA PREMIUM
Age Extra
Physical impairment Extra

Health Extra

Occupational Extra

Residence Extra
 Non-Medical Underwriting
Why insurance is allowed under Non Medical?
Even after medical examination more than 90% proposals
are accepted at Ordinary Rates

Unavailability of Qualified doctors.

The insurer will save on medical fees & devise some

standard format of Proposal Form which will elicit major
information relating to his Income, Personal & Family
History, Health & Habits which will help the underwriter
to assess the risk & safeguard from adverse selection.
 Non-Medical Special
CLASSES OF LIVES AGE MAX (SA) SUC
Literate major males & UPTO 35 YRS 30 lacs
SSC passed females 36 TO 45 YRS 20 lacs
working in Government,
Quasi Government, 46 TO 50 YRS 10 lacs
Industrial undertaking
etc. with length of service
1 year

Commissioned officer in UPTO 35 YRS 30 lacs

armed forces not below
medical category A-I & 36 TO 45 YRS 20 lacs
length of service of
atleast 1 year / NRI 46 TO 50 YRS 10 lacs
 Non-Medical General
CLASSES OF LIVES MAX (SA) SUC PLANS ALLOWED
PROFESSIONAL NOT OVER 25 lacs ALL PLANS
35 YRS INCLUDING
PROFESSIONAL BETWEEN 15 lacs TR AND PWB
36 YRS TO 45 YRS

PROFESSIONAL BETWEEN 8 lacs

46 YRS TO 50 YRS

MAJOR STUDENTS NOT 20 lacs

OVER 25 YRS
 Major males & literate females
With Std age proof and having own income(Earned or unearned)

AGE SUM ASSURED ( SUC )

NOT AGED OVER 35 8 lacs
YRS
AGED BETWEEN 36 5 lacs
TO 45 YRS
AGED BETWEEN 46 TO
50 YRS
3 lacs
 Major males & literate females
With Non-Std age proof and having own income(Earned or unearned)

AGE SUM ASSURED ( SUC )

NOT AGED 5 lacs MAXIMUM AGE

OVER 35 YRS AT ENTRY 50
AGED BETWEEN YRS AND
36 TO 45 YRS
3 lacs MAXIMUM AGE
AGED BETWEEN AT MATURITY
46 TO 50 YRS
2 lacs 65 YRS
 Insurance on Female lives
Female applicants for insurance present
some distinct problems. Amongst them
are:1. Female lives are prone to hazards
related to child birth particularly in our
country where medical facilities are not
uniformly available and even available, not
availed of.
 Insurance on Female lives
2- The problem of weak insurable interest arises
from the fact that female lives to be insured do
not have an earned income or do not have a
family depending on them for support.

3- The medical examination in case of female

applicants is not as effective as in the case of
male applicants particularly when in the absence
of lady doctors,
 Insurance on Female lives
The medical examination has to be carried
out by male examiners. The history of
illness may not be revealed in full and
unfavorable facts may be concealed
innocently. The practices have changed
during the last fifty years.
 A(I) FILLING ITR OR NMS
AGE MAX.TRSA PLAN INCOME PROOF OTHER CONDITIONS
PROO ALLOWED/ ALLOWED
F MIN QULI
Stand At par with At par ITR with supportive 1. For self employed
ard Male Lives with proof like Salary or or with unearned
Male pension or income Spl MHR 3251
Lives investment (A&B) by BM is
or Rental required. If TASA
agreement etc exceeds 2 Crore MHR
reflecting in bank in letter form
cash regarding social &
flow. If no economic status with
supportive exact source of income
proof TRSA is required.
restricted 2. Funding from
to 200 lakhs Husbands income for
more than TRSA 50
Lakhs should be sent to ZO/CO
 own income that can be ascertained
AGE MAX.TRSA PLAN INCOME PROOF OTHER CONDITIONS
PROOF ALLOWED/ ALLOWED
MIN QULI
Standa 50 Lakhs 10th All plans PFQ/CA certificate / 1. Without insisting
rd Pass excluding Salary or pension or min. qualification, 100
E Term investment or Lump Lakhs under Single
with TR & sum proof/Rental premium can be
CIR agreement etc allowed if any proof of
up to 25 reflecting in bank lump sum income is
Lakhs. with account statements available.
MHR Anx-I 2. Spl MHR (Ans-I
by BM for females)
I/C by DM club & above
Agents/DO/
ABM(S)/BM
3. Term Insurance
should be referred to
Divisional Office
 own income that cant be ascertained
AGE MAX.TRSA PLAN INCOME PROOF OTHER CONDITIONS
PROO ALLOWED/ ALLOWED
F MIN QULI

Any 15 Lakhs All ACR/MHR by 1. Max. Age of

for 12th plans Agent/DO Entry 60 Years
Pass & excludi 2. Spl MHR (Anx-
above ng I) by DM club &
10 Lakhs Term above Agents/
for less Insuran DO/ ABM(S)/BM
than ce 3. NSAP
12th (TRB. restrictions
(HSC) CIR & applicable
PWB)
 House wives graduate and above
AGE MAX.TRSA PLAN INCOME PROOF OTHER CONDITIONS
PROO ALLOWED/ ALLOWED
F MIN QULI
Stan 100 Lakhs All plans Husband's income 1. Max. Term insurance
dard or up to excludin proof for matching. allowable is 50% of in
Matching g LA should possess force term cover on
insurance E Term Passport / D.L. / Credit husbands life.
an the life including card / PAN / Medi-claim 2. Insurance from LIC
& Term cover and proof of as well as private
husband. insuranc qualification are must insurer can be
e& be insisted if TRSA considered for
Term exceeds 60 Lakhs, matching
Rider including Term Rider of
(Max 50 25 lacs
Lakhs)
 House wives graduate and below
AGE MAX.TRSA PLAN INCOME PROOF OTHER CONDITIONS
PROO ALLOWED/ ALLOWED
F MIN QULI

Any 60 Lakhs All Husband's NSAP

or up to plans income proof for restrictions
Matchin excludi matching applicable
g ng 2. Insurance from
insuranc Term LIC as well as
e Insuran private insurer
an the ce / can be considered
life & Term for matching
husband. Rider
 Special conditions for Housewives
1. MHR by DM club or above agent / CLIA / DO / ABM(S) is to be
insisted for SA above 5 Lakhs
2. If husband is uninsurable documentary proof of the same along
with special MHR 3251 by BO In charge irrespective of SA should
be referred to ZO
3. Income of husband should support insurance on TRSA of his own
life as well as his wife and dependent children.
4. Under A(ii) if funding from husband's income for above 50 Lakhs
of her own eligibility, cases may be referred to ZO/ CO for
consideration.
5. TRSA = Total Rated up sum Assured
6. TASA = Toatal Actual sum Assured (considered & MHR)
Other conditions for House wives:
1.Insurance(TRSA) taken from LIC as well as from any private
insurer companies can be considered as matching insurance on the
life of husband.

2.Income of husband can support the total insurance on his own

life as well as on his spouse and on the lives of his dependent
children.

3.MHR at least by BM Club ember agent/CLIA/ Dev. Officer and by

ABM(S) is to be insisted upon for SA above Rs.5.00 lakhs.
4. In case husband is un insurable, documentary proof
of the same along with detailed special MHR IN
3251(revised) from an official not less than the rank of
Branch manager in-charge is to be insisted upon strictly
irrespective of SA . If required, underwriters at their
discretion may call for Special MHR by MM/CM
irrespective of Sum proposed.

5. If husband is un insurable, cases for SA above

Rs.50.00 lakhs , may be referred to NB&R Department ,
Central office.
Effective date 24/11/2016
FEMALE STUDENTS/CHILDREN BELOW 25
YRS.

The insurance on their lives will be

accepted at par with male
students/children:- max.2 crore.
INSURANCE ON MINOR LIVES (Male & Female)

Maximum TRSA up to 2 crore( not exceeding parents

insurance & restriction of annual income).

Matching insurance of parent not to be insisted up to TRSA 10

lakhs & 25 lakhs if PWB opted.
Refer to ZO if matching insurance of parent is not adequate.

SA more than 2 crore to be referred to CO.

Applicable to all students aged 18 – 30 years subject to
proof of study.
 Proposals on the lives of pregnant ladies

Proposals are submitted within the first twenty-four (24)

weeks of pregnancy

Proposals will not be entertained under the non-medical

scheme.

Full medical report (FMR) from our authorized medical

examiner / DMR / TPA should be obtained as per existing
rules
 Proposals on the lives of pregnant ladies

Proposals for cover in excess off Rs.one crore

during the period off pregnancy could be
considered only after referring to the reinsures.

Pure Term Insurance plans and plans having

higher term insurance element will not be
entertained.
 Special Moral Hazard Report by the
competent authority in Form No 3251
should be obtained in all cases
irrespective off the sum proposed or
SUC.. In no case the proposal is to be
entertained on the basis off the ACR..
All other special reports as per the special
report chart except Chest X-Ray and CTMT
are to be called for.

Report from the attending gynecologist in

Form No 3341 (Revised) certifying that the
lady is under his / her care will be required
The pregnant women should be falling
under Female Category I & II only.

Maximum cover during the period of

pregnancy will be restricted to Rs one
crore. The insurance cover granted should
be reasonable in relation to the proposer’s
income.
1. Wife should be proposer, proposal form 340 to
be completed.
2. Husband should have been insured fully based
on his own Income
3. EXAMPLE:-

AGE Average Eligible Existing Add. Ins.to be

Yearly Insurance Insurance on granted to
income her life husband
32 7 lacs 1 crore 40 lacs 40 lacs
43 4 lacs 48 lacs 30 lacs 18 lacs
 INSURANCE ALLOWED
ON THE BASIS OF
AGE 26-35 YRS.
PARENTS INCOME 50%
OF L.A. OWN ELIGIBILITY.

AGE 36- 45 YRS. 30% OF L.A. OWN

ELIGIBILITY
NO CREDIT FROM
MORE THAN 45 YRS. PARENTS INCOME
Age of LA Amt. of credit
Upto 25 yrs i) minor lives-upto 50 lacs
ii) major children upto 25 yrs
-- 1 crore

26-35 yrs 50% of LA’s own eligibility

36-45yrs 30% of LA’s own eligibility

Above 45 yrs No credit

 Example
TRSA – 30 lacs Avg. income – 1 lac Age – 26 yrs
Max. insurance allowable- 1lac x 22 = 22 lacs
Max. addl. Cover- 50% of 22 lacs = 11 lacs
Total allowable cover = 33 lacs
Avg. income of parents’ (combined)= 1.5 lacs
Age – 45 + (both)
Max. insurance allowable 1.5 lac x 10= 15 lacs
Parents’ insurance combined = 7 lacs
Funding to other members = Nil
Balance available for support = 8 lacs
Hence, maximum insurance allowed

Own capacity = 22 lacs

Parents’ support = 8 lacs

Total = 30 lacs
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