Insurance is a legal contract and Proposal Form is the basis of contract. Underwrites assess the risk by evaluating the facts given in the Proposal Forms which is supposedly filled in the hand writing of Proposer. Questions in Proposal Forms are in English and it is quite possible that Proposer does not know English. In such cases, form can be filled by a third party who certifies that Proposal Form has been filled as per information given in vernacular language.
Insurance contract is done on the basis of Proposal Form and Vernacular Declaration submitted by third party. This declaration confirms that all policy features has been explained in vernacular language and proposer has agreed to the contract and hence the form is being filled.
This is done to safeguard the interest of Policy Holders as per explanations below:
- India is a multi lingual country where many languages are spoken and insurance contract should be made with all understanding. IRDA mandates that Proposal Forms should be filled with all understandings to avoid any fraud or mis-selling
- Even form of an illiterate person can be filled by third party, who certifies that all features has been explained.
- Insurance is matter of solicitation which should be done in vernacular language and both party should protect their interest.
- Vernacular declaration can be done by any one neighbour, relation of proposer but not by the friend or relative of seller or seller themselves. This is very important so that mis-selling is controlled.
In case of people who are illiterate and do not understand English, they can report mis-selling or fraud if vernacular declaration has been done by an unknown person.
Insurance Samadhan believes that Vernacular declaration is a great tool in the hand of Policy Holders so that they fight their case in front of Ombudsman and Consumer Court.
Vernacular Declaration is part of the contract and identity of person is essential. In case you do not know the person who has signed on vernacular declaration, Insurance Samadhan can raise your case with Insurance Company for mis-selling.
So guide all victims of Insurance mis-selling that they should check vernacular declaration.
Insurance Samadhan has provided resolutions in over 13,500 cases related to insurance grievances and aims to build a grievance free eco system for the growth of Insurance Business.
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