Non Standard Age Proofs NASP

Non Standard Age Proofs NASP
1. Permanent Account Number (PAN) Card issued by I-Tax Deptt.
2. Driving License issued by RTO.

Restrictions for NSAP-I:
2 Non-standard age Proof extra will not be charged.
b) Whole life (Table No.2) : Upto 5 lacs sum assured without PPT restriction.
c) Plans involving term insurance elements i.e. 43,52,58,88,89, 103,106,107,108,133,160,164 & 168: maximum aggregate rated up sum assured of Rs-5 lakhs only.
d) Term rider and Critical Illness Rider will be allowed upto Max of Rs. 2 lakhs.
e) There will be no restrictions on maximum age at entry and maturity / premium ceasing age.
f) Maximum policy / premium paying term will be restricted to 25 years only.
g) Under Plan 193 Money plus-1 Max. 20 times of annual premium.

NSAP II:
1. E.S.I.S. Card.
2. Marriage Certificate in the case of Muslims
3. Service Record where age is not verified at time of entry into service or where only year of birth is mentioned.

Restrictions for NSAP- II:
a) Age proof Extra equivalent to Class I extra, subject to a minimum of Rs. 1.50 per thousand will be charged.
b) Plans involving term insurance element, whole life (Table No.2) Term Rider and Critical Illness Rider- will not be allowed.
c) Maximum age at entry will not exceed 50 years (nearest birthday) of age.
d) Maximum Policy / premium paying term will be restricted to 25 years.

e) Maximum maturity age / premium ceasing age will restricted to 65 years.
f) Under Plan 193 Money plus-1 Max. 15 times of annual premium.
g) Under Plan 191 Market plus Max. risk cover equal to single premium or 15 times of annual premium.

NSAP III:
1. Horoscope other than that maintained by a Hindu Family in a Bahi or family horoscope book.
2. Elder's Declaration (From No. 3261)
3. Self Declaration (From No. 5220 Stamped)
4. Self Declaration (From No. 5096 - Unstamped)
5. Certificate issued by village panchayat.
6. Any other proof not classified as standard as above.
7. Ration Card, (should be original and date of issue should be clearly visible)
8. Election (Voter) Identity Card

Restrictions for NSAP III:
a) Age proof Extra equivalent to Class I Extra, subject to a minimum of Rs. 1.50 per thousand will be charged.
b) Maximum insurance cover will be restricted to Rs. two lakhs. (Cir: U&R/18/2008 dt. 28/06/2008)
c) Plans involving term assurance element, whole life (Table No.2), Term Rider and Critical Illness Rider-will not be allowed.
d) Money Plus-1 (193) Max.10 times of annual premium.
e) Market Plus (191) Max. risk cover equal to of single premium or 10 times of annual premium.
f) Maximum Policy / premium paying term will be restricted to 25 years.

g) Maximum maturity age / premium ceasing age will be restricted to 65 years.
h) The date of birth may be taken as follows when self-declarations are submitted.

Other Conditions:
1. For widows under category 3 only Standard age proof will be accepted.
2. If exact date of birth is not available under any of NSAP, the date of birth may be taken as given below:
• If only month is given, then 15th of that month will be taken as date of birth.
• If only year is given, then 1 st July of that year will be taken as date of birth.
3. Annexure A (form no 3260) is required under all categories of NSAP.

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Numerical method of underwriting

The numerical rating method is a systematic method of measuring each of the major factors which influence the mortality by means of debit for a factor which is unfavorable and credit for one which is favorable.
The rate of mortality of substandard life is obtained by adding to the basic mortality rate appropriate to standard lives.

e.g: Consider a group of 1000 lives aged 40, suffering from high blood pressure.
Suppose it is observed that over a year actual number of deaths for this group is 25.
Suppose for a normal group of 1000 lives aged 40, the expected number of deaths over a year is 10.
The group with high blood pressure is experiencing 15 extra deaths over anc above the expected deaths of standard group.
The extra mortality rating (EMR) in this case will be:
= Extra deaths x 100 = 15 x 100 = 150%
Expected deaths 10
It is found that certain impairments such as high blood pressure or persona-history of heart disease, the extra risk relative to the standard risk increase? as age increases.

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Selection And Classification Of Risks Underwriting

Selection And Classification Of Risks (Underwriting)


Objectives for Underwriting:


Each insured person contributes to a common fund. In order to maintain equity amongst them, each insured should contribute according to the risk which he transfers to the common fund. When new entrants are admitted to the existing fund, it is particularly essential that the underlying mortality experience of the existing
policyholders and the new entrants, should not be significantly different. Reasonable homogeneity of the risks has to be ensured.

In a group of individuals of same age some may be :

• Death- Bed cases,
• Suffering from varying diseases.
• Having physical disability.
• Exposed to unusual environmental risks.
• Normal lives i.e. free from any disability or disease.

It is the objective of the insurance underwriter to classify them in appropriate groups according to the degree of risk and charge them premium commensurate with the risk for the group or even postpone/ decline the acceptance.

The factors affecting risk on the life of an individual are called hazards.
Hazards are classified as
 (i) Physical
(ii) Occupational
(iii) Moral.

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