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Exide life insurance term plan



Subject insurance company has collected premium from me for Rs 14468/- in advance towards term plan asked me for medical test and has collected ITR and other documents before more than one month, and now asking me to select investment plan and says they can't obtain me the term plan with reason Unknown to me..


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Prasad GLN

The contract of insurance is a contract of utmost good faith.

There is the only proposal by the member with an application and first premium.

Whether the proposal is to be accepted or not is left to the other party entering into agreement of contract.

When the proposal is not accepted, the contract is not complete and they have to refund the money. The contract of insurance is subject to medical examination if ME is not negative, Company has to bear the expenditure.  If the proposer fails ME, he has to foot that expenditure and this is common practice even with LIC. (Legal example is Proposal is like a train of Gun powder, and acceptance is like match stick)

You can issue a Demand notice under  CP Act seeking the specific reason for rejection of term policy and for refunding of the amount with interest.

They can not propose for changes and it is left to proposer either to accept it or not and it is the proposer to has to opt for a policy suitable to him.

Mere collection of the first premium and asking to undergo ME cannot bind the company. The first premium can not be credited into policy holder account till he succeeds in ME and insurance policy is issued.

The contract of insurance is complete only when it is agreed in writing through policy document.

Edited by Prasad GLN
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