Filing up proposal form:
Insurance company provide proposal form which must be filled by the client. Many questions are included in it. Generally name, age, address, occupation, father’s name, gender, nominee’s name etc are expressed in the proposal form. Besides them value and nature of property, method of paying premium is also listed.
Survey of subject matter of insurance:
All people are not honest therefore insurance company appoints the survey. To survey about the property server evaluate the proposed property in the form of amount and server prepares a survey report. This report is submitted to office of insurance company.
Evidence of respectability:
Evidence of respectability recommends that an individual is respected personnel and has a good character. The proposer may submit this report only if necessary.
Acceptance of proposal:
The insurance companies make the decision about accepting or rejecting the proposal only after studying all the information about the proposal from report of survey etc. It must be doe very carefully. If any negative information is found they should be rejected.
Payment of first premium:
The rate of premium is then determined and is paid b proposer to insurance company. It is compulsory step. Only after the payment of premium the insurance is considered valid.