Transfer of Policy Records | Change of Address

Policy Servicing Manual No. 2 (Transfer of Policy Records & Change of Address)

Policy Servicing Department
Manual No.2
Transfer of Policy Records & Change of Address
Contents
1. General Introduction
2. Restriction on Transfer etc.
3. Transfer from one office to another office in the same country.
(i) Transfer from one Branch office to another Branch under the same divisional office.
(ii) Transfer from one Branch to another Branch under a different Divisional office either within
the same or another Zone
4. Transfer from one office in India to an office outside India and vise versa.
5. Transfer from an office in one country outside India to an office in another country outside India.
6. Transfer of policies the holders of which reside in countries where the Corporation has no office.
7. Change of Address.
Policy Servicing Manual No. 2 (Transfer of Policy Records & Change of Address)
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Manual NO 2
Transfer of Policy Records and Change of Address
1. General Introduction
The various transfers that arise may be classified into the following categories:
(A) Transfer from one office to another office in the same country.
(i) Transfer from one Branch to another Branch under the same Divisional office.
(ii) Transfer from one Branch to another Branch under a different Divisional office either
within the same or another Zone.
(B) Transfer from an office in India to an office outside India and vice versa.
(C) Transfer from an office in one country outside India to an office in another country outside
India.
(D) Transfer of policies the holders of which reside in countries where the Corporation has no
office.
A policy lapsing without acquiring any value should not be transferred. In such cases the
policyholder should be informed that his request for transfer would be considered only after
the revival of the policy.
2. (I) Restriction on transfer of policies:
(a) Policies should not be transferred within a period of one year from commencement.
Policies can be transferred in the normal course provided one year has elapsed from the date of
commencement; but such transfer may be allowed if the policyholder has paid premiums to cover
fully the first policy year.
(II) Policies, which are to mature within one year following the date of receipt of request,
should not be transferred to another Divisional Office.
(C) Policies under convertible Whole Life Plan, Guaranteed Triple Benefit Plan and C.D.A plan
where date of exercising options/adoptions under the policies fall due in the course of one year
following the date of request for transfer should not be transferred unless the option/adoption in
the case of G.T.B / C.D.A policy, has been exercised / completed.
(d) Policies should be considered for transfer only if they are in full force as on the date of
request for transfer and where no instalment of premium are in arrears. However, in case of
an SSS policy, it can be transferred to another B.O or D.O even though it is in lapsed
condition, if a specific request to that effect is received from the policyholder, indicating
that he wants to revive the policy after such a transfer to the new office.
(iii) Collection of advance Premium:
Generally no advance premium need be collected from the policyholder before transfer of his
policies. However, if on the date of receipt of request for transfer of a premium has already
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fallen due, grace period of which has not expired, that premium should be collected by the
transferor office before transfer action is taken. Further, if the mode is monthly and policy is
not under SSS, the policyholder should be requested to effect change of mode to quarterly or
halfyearly or yearly before the transfer or in the alternative 3 monthly premium towards
future monthly instalments should be collected from policyholder before taking the transfer
action. Subject to these exceptions no advance premium or other requirements are to be called
for when request for transfer of policies is received from a policyholder.
The B.Os should complete the transfer action latest within 3 days in all cases where
no advance premiums are required to be paid by policyholder prior to transfer.
If while transfer action is in process or shortly thereafter an instalment premium is to
fall due, the policyholder should be intimated while conveying the information of transfer of
records to him, to pay the ensuing premium at the transferee D.O / B.O within days of grace
to prevent policy from lapsing. If survival benefit is due and liability is booked by the Branch
then policy shall be transferred only after payment of S.B.
(iv) Transfer of SSS Policies:
While SSS policies can be freely transferred at the request of the employee following a
transfer or change in his employment or P.A, transfer of SSS policies which are due to
mature within the next six months, should not be effected. Under all such cases where the
policies would mature within the next six months, the policyholder should be advised
accordingly and he should be requested to write to his new employer not to deduct the
relevant premium from his salary. All premiums falling due within six months of the
maturity date not deducted by employer should be deducted by the Serving Office from
claim amount without interest. In the alternative the policyholder should be asked to
remit the premium directly to the office where the policy is being serviced.
However, transfer of SSS policies between six months and one year of the maturity date
can be effected provided due care is taken to include such policies in the maturity list
(which is being prepared by the DP department) of the transferee D.O
PROCEDURES
3. Transfer from one office to another in the same country
(i) Transfer from one Branch to another Branch under the same Divisional Office:
On receipt of a request from one policyholder, the Branch Office will take action as
follows:
If there is only one Branch office at the area of transfer, the Branch file of correspondence
would be directly sent by the Transferor Branch to the Transferee Branch within or outside
the Divisional office. Where there are more than one Branch in a particular area and where
there is a request from the policyholder regarding the particular branch in which he desires
his policy to be serviced, the policy file may be sent by the Transferor branch office directly
to the concerned Transferee Branch. Where the transferor Branch office is not in a position to
know the Branch which should service the policy in the area where there are more than one
Branch, they should send the policy file of correspondence directly to the correct Branch
within their jurisdiction.
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If the transferee Branch does not receive the policy file from the transferor Branch
within reasonable time it should send a reminder to the Transferor Branch.
The Branch to which the policy has been transferred will take the usual-action with
regard to premium/loan interest receipts, if any, forwarded to it and will do the usual
servicing of the policy after its transfer. The copy of the Policy Register sheet sent to Branch
will be kept by it in the serial order of the policy number.
(ii) Transfer from one Branch to another Branch under a different Divisional Office, either
within the same or another Zone:
The procedure to be followed in such cases will, in certain respects, differ from that to be
followed where a policy is transferred from one Branch to another Branch in the same
Division. The points to be noted are:
(iii) Send the original policy file and loan papers, if any to the transferee B.O by registered post
and simultaneously also send a separate intimation regarding the dispatch of the policy file,
with a request to the transferee B.O to acknowledge the receipt of the policy file immediately
receipt thereof; maintain the list of the policy files so dispatched and post the
acknowledgements when received against the entries of the relative policies in the list. (The
list should be gone through at the end of each month and where no acknowledgements have
been received, a reminder should be issued to the transferee BO On receipt of an intimation
about non receipt of a policy file by the transferee B.O the transferor B.O should immediately
take up the matter with the postal authorities)
(iv) If there is any amount lying in suspense to the credit of the policy, transfer the same to the
new Branch office by a cheque in its favor.
The Branch office to which the policy is transferred will, on receipt of advice of transfer:
(i) transfer by cheque to the original Branch Office the amount of the loan outstanding against
the policy and simultaneously open a Loan Account in their Loan Ledger;
(ii) if the policyholder resides at a place where a Bank is authorized to collect payments from
policyholders on behalf of the Branch office, inform the policyholder about such arrangement.
Note: The Branch office from which the policy is transferred, will on receipt of the cheque in
respect of the outstanding loan, pass suitable entries in the Loan Ledger sheet and take the following
remark therein “ Loan account transferred to ………………..BO on………………….. Amount
received from ……………………………B.O on ……………………………….” Miscellaneous
receipt should be issued favoring the transferee B.O and crediting policy Loan A/C.
Transfer of policy Records from one Branch Office to another may be allowed even after
claim has arisen under a policy involving payment of the claim amount, either wholly or partly, in
installments spread over a period of years, provided specific request to that effect is made by the
claimant there under. While effecting transfer of policy records of this nature the transferor Branch
office should reverse the provision made in its books of accounts in regard to payment of benefits and
/ or installments of claim amount remaining unpaid under the policy as on the date of transfer and the
transferee Branch office should make an identical provision in its books of accounts immediately on
receiving the policy records.
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The following guidelines should be kept in mind while dealing with “Transfer of policy
records” :
(i) It should be ensured that the complete records of the policy are transferred at one time i.e.
Docket with loan docket/Loan Ledger sheet, if any, with upto date position of last premium paid and
last installment of loan and interest received.
(ii) In cases, where there is a likelihood of any delay in transfer of records for any reason, the
delay should be communicated to the life assured under copy to the controlling Divisional office.
(iii) Transfer of records to a D.O / B.O of any Division should be done after incorporating the
complete address of the transferee B.O. If it is not properly known then and where the transferee
office is a CBO in a metropolitan center having more than one B.O, the Transferor B.O should
transfer complete records to the Divisional office with its complete address by Regd. A.D post in the
name of Sr./Divisional Manager in charge of the Division. In any case it must be ensured that DP
Dept. picks up the entry in respect of Transfer-in policy, and records upto date position.
(iv) The transferee D.O /B.O should then confirm receipt of the records to transferor office. It
must ensure to get the “Master of the policy built up” with the help of available D.P system. The life
assured should be advised about the transfer-in as also complete address of the servicing B.O.
(v) The transferor office and transferee office must keep upto date records of “Transfer out and
Transfer-in” policies, in Branch Transfer Off and Branch Transfer-in Registers. This would enable
them to keep D.P Depts., of the respective Divisional offices posted with upto date position in respect
of Transfer of records of the said policy/ies.
(4) Transfer From One Office In India To An Office Outside India Or Vice Versa
Request from policyholders in India who have become non –residents of India to transfer
their policies to Corporations’ offices outside India should be referred to the respective
Divisional office for necessary advices. Such transfer can be considered only takings into
account relevant Exchange Control Regulation of the Reserve Bank of India and of the
country to which the policy is to be transferred.
(5) Transfer from an office in one country outside India to an office in another country
outside India
The concerned divisional office will have to consider such requests in the light of the relevant
Exchange Control Regulations both in the country from and the country to which the policy is
to be transferred.
(6) Transfer of policies, The holders of which, Reside in countries where the corporation
has no office.
If a policyholder has taken up permanent residence in a country outside India where the
Corporation has no office or if the policyholder has become temporary non-resident of India,
then the premium can be accepted as follows:
In respect of Rupee Currency policies on the lives of Indian Nationals or persons of Indian
origin, residents outside India, the premium and other dues such as interest on premia and
loans, repayment of principal loans, etc. can be accepted if they are paid in any of the
following manner:
(1) By direct remittance from the country of residence of the Life Assured to India by means of:
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(a) Bank drafts:
(b) Mail transfers;
(c) Telegraphic Transfers;
(d) Foreign Money Orders.
(Where payments are made by bank drafts, the policyholders, may be advised to send drafts
preferably drawn in Rupees in favor of Life Insurance Corporation of India made payable at
or nearest to the place where the servicing office is situated to avoid shortages on account of
fluctuating exchange rates and bank charges).
(ii) By cheque drawn on the life Assured’s own Non- Resident (ordinary)., Non- Resident
(External), Foreign Currency (Non-Resident, or Non-Resident (Blocked – Account with a
bank in India, (Payments can be accepted from Joint Accounts provided the life assured is
one of the account holders).
(iii) By cheques drawn on the Assured’s own Resident Account with a Bank in India (Payments
can be accepted from joint-accounts provided the life assured is one of the account holder).
(iv) By cheque drawn by Father Mother or the Wife of the life assured on his / her own account
with a bank in India. (Payments can be accepted from the joint accounts provided the Father /
Mother / Wife of the life assured is one of the account holders)
When premiums are received either from the Resident Bank Account of the life Assured or
from the Bank Accounts of the Life Assured’s Father / Mother / Wife, it should be made clear
to the policyholder that the policy moneys will be paid in Rupees in India only.
To ascertain the names of the account holders, a letter may be obtained from the Bank on
which the cheques are drawn stating the account number, names and addresses of the account
holders and the nature of the account.
Premiums cannot be accepted without specific approval of the Reserve Bank of India, if they
are paid,
(i) By cheques drawn on an account standing in the name of a Firm, even if the Life
Assured happens to be a partner or the sole proprietor of the Firm:
(ii) From the Hindu Undivided Family Funds;
(iii) In cash
What is stated hereinabove applies to Indian Rupees policies on the lives of Indian
Nationals or persons of Indian origin resident outside India only.
7. CHANGE OF ADDRESS
If, while attending to any communication from a policyholder, it is found that the address given
by him in the communication is different from the one recorded by the Office, an enquiry should
be made of the policyholder whether the changed address should be noted for the purpose of
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future correspondence with him. If the assured replies in the affirmative, the following action
should be taken
If the intimation regarding the change in address is received by Branch Office:
First of all enter the policyholder’s request in the Inward register and then P.S. dept. will effect
the online change through P.S. Module of the front-end system. A printout of new address should
be taken in duplicate. One copy of that must be sent to the policyholder and another copy may be
filed in the docket.
If a request of change of address is received either through E-mail or Telephone then before
effecting the change of address few confirmatory questions should be asked viz. Date of
commencement of the policy, father’s name, table and term etc.,
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