A Large number of life insurance proposals may typically get selected for insurance without conducting a medical examination to check the insurability of a life to be insured. such cases are termed as non medical proposals.
Conditions for Non Medical Underwriting
- Only certain categories of fema;es, like working women may be eligible.
- Upper limits on Sum insured may be imposed(SA beyond 5 lakhs need medicals)
- Age at entry ( 40 or above need medicals)
- Certain plans of insurance (term insurance)
- Maximum term of insurance (from 20 years to age of 60)
- Class of lives with proper leave record and having periodic medical examinations.
Rating factors in underewriting
Factors like income, occupation, lifestyle and habits which contribute to moral hazard, are assessed as part of financial underwriting, while medical aspects of health are appraised as part of medical underwriting.
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