Proximate Cause
- It is defined as the active and efficient cause that sets in motion a chain of events which brings about a result, without the intervention of any force started and working actively from a new and independent source.
- In general, since Life Insurance provides for payment of a death benefit, regardless of the cause of death, the principle of Proximate Cause would not apply. It applies only to Riders.
Adhesion Contract
Drafted by the party having greater bargaining advantage, providing the other party with only the opportunity to accept or reject it. Here the Insurance Company has all the bargaining power. To neutralize this free look in period is offered to policy holder.
Free Look Period - 15 Days
- free-look period has been introduced whereby a policyholder, after taking a policy, has the option of cancelling it, in case of disagreement, within 15 days of receiving the policy document.
- The company has to be intimated in writing.
- Premium paid is refunded less expenses & charges.
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