FAMILI HISTORY: Takes into account the longevity of the parents and siblings , number of early and very early deaths, survival beyond a stipulated age, nature of hereditary diseases. etc., PERSONAL HISTORY: Takes into account the diseases , accidents and other injuries suffered by the proponent prior to the proposal for insurance , and the time that has lapsed after surgery , if any . Based on these factors, the underwriting may decides to elicit further information through a special questionnaire. PRESENT STATE OF HEALTH: Takes into account the present ailments of the proponent (life proposed) and the influence of the his/her habits on the state of his/her health. NATURE OF OCCUPATION: The nature of his/her occupation and the factors in occupations that contributes to enhancing the risk and the living environment.
PHYSICAL BUILD: Takes into account the proponents height
weight, chest and abdominal measurements including visible physical deformities. Based on this
risk inducing factors, the various
ranges of extra mortality are arrived at the they are grouped into a
different groups ranging from Mortality
Class I and onwards. On determining the total extra mortality for the risk to be covered , if the life falls within any
substandard class, extra premium is levied . The underwriters ignore extra premium up to a certain percentage
depending upon the company practice. In
a few from now mortality classifications may undergo
some changes as the world over, various
criteria are getting revised .
Level of the sugar , cholesterol, systolic and diastolic
pressure indicators , which were consider normal are being re-evaluated.
Besides these factors, the underwriter also takes into a account the type
of cover required by the proponent
the sum assured and the possibility of any moral hazard. In selecting
the risk, the insurance companies, both
in life and non-life business consider
their agents or advisors as Primary
Underwriters. In the context of life insurance
, the agent or the advisor who
secures the business is required to satisfy himself about the insurability of
the proponent based on the verifiable
data about the proponent, like his income standard of living, habits, etc., through
personal enquiries made by him about the
proponent. The agent or the advisor is required
to provide a true and correct evaluations to the best of his knowledge in a report
called the Agent or the Advisor’s Confidential Report, which is a must and has
to invariably accompany the proposal. As
a larger sum assured and related
hazards’s impact the claim
experience in all large sum assured
cases, the insurer may obtain an additional
report called the
Moral Hazards reports by the agent or the advisor or
an officer designated by for the purpose. After examining the personal statement of the proponent the
agent or the advisor’s confidential report and the medical examiner’s reports, the underwriters rates the risk value of the life by assigning credit points
for the favourable factors, and
debit points for adverse factors and
impairments . The mortality ratings are
for quinquennial ages and the ratings
are also given in units of five. In other words, the assumptions is that the
rating for a specified age is taken to be relevant for five consecutive integral ages for which the specified age is
the centre and fro the intermediate
ages, the
ratings may have to
be interpolated . Based on the this
principles , the underwriting evaluates
the proposal from two angles,
viz, from the family and personal history and from the point of view of the
physical build and impairments