Procedure

 

1. Form no 340 should be submitted when employer is the proposer, signed by the person authorized by the company as proposer and also by life assured. The authorized person may be preferably one of the directors of company.                                                                                                       
2.  If employer may like to advance loan towards payment of premium to the employee, proposal f. no. 300 may be used. However, in such cases, policy may be assigned to employer as a collateral security and reassigned to the policyholder on redemption of debt.                                  
3. Moral hazard is critical area and needs through examination before proposals are finally accepted. MHR in prescribed form by respective authority may be called if necessary.                                                                
4. Authorized signatory of the company as per the board resolution must affix rubber stamp of his designation below his signature on the proposal form.                                                                                                              
5. Since the proposal will be treated as individual proposals on the life of employees concerned, irrespective of whether the proposer is employee or not, requirements of medical examination have to be decided as per status of individual employee.                                                                        
6. Special reports as per SUC of the employer.If the employee is the proposer, the policy shall be assigned to the life assured soon after it is issued. Separate letter from the employer stating the object of insurance, the restrictions he desire to be considered in respect of surrender, loan etc. and that he would assign the policy to the life assured , should be obtained, stating clearly that the letter will form a part of the proposal.