Section 4 in The Insurance Regulatory And Development Authority (Protection Of Policy-Holders' Interests) Regulations, 2002
4. Proposal for insurance
.-(1) Except in cases of a marine insurance cover, where current market practices do not insist on a written proposal form, in all cases, a proposal for grant of a cover, either for life business or for general business, must be evidenced by a written document. It is the duty of an insurer to furnish to the insured fee of charge, within 30 days of the acceptance of a proposal, a copy of the proposal form.(2)Forms and documents used in the grant of cover may, depending upon the circumstances of each case, be made available in language recognised under the Constitution of India.(3)In filling the form of proposal, the prospect is to be guided by the provisions of section 45 of the Act. Any proposal form seeking information for grant of life cover may prominently state therein the requirements of section 45 of the Act.(4)Where a proposal form is not used, the insurer shall record the information obtained orally or in writing, and confirm it within a period of 15 days thereof with the proposer and incorporate the information in its cover note or policy. The onus of proof shall rest with the insurer in respect of any information not so recorded, where the insurer claims that the proposer suppressed any material information or provided misleading or false information on any matter material to the grant of a cover.(5)Wherever the benefit of nomination is available to the proposer, in terms of the Act or the conditions of policy, the insurer shall draw the attention of the proposer to it and encourage the prospect to avail the facility.(6)Proposal shall be processed by the insurer with speed and efficiency and all decisions thereof shall be communicated by it in writing within a reasonable period not exceeding 15 days from receipt of proposal by the insurer.
