Partnership Insurance form LIC of India - LIC AGENT RECRUITMENT for 2024-25

If you are LIC Agent or you want to be LIC agent then Partnership Insurance can become great sales tool to market.

If you are running a business with partners then also it is a great option for you.

If you see LIC proposal form properly , you must find that same Proposal form is used for Individual Insurance, Key-men Insurance,HUF and Employer Employee Insurance .So you have to be master of all such types of option. Partnership Insurance is one the best part for LIC agency profession and well as customer part both.

What is Partnership Insurance?

Suppose Ram and Rahim owned a business .Ram looks after admin part whereas Rahim take care Sales and distributions of the business.

If Ram dies ,who will care admin part of the business as well as Rahim dies then Sales part of the business will ruin.

So anything goes wrong with any Partner of the company ,the compensation amount will go to other partner run the business soothly.

Conditions of Partnership Insurance

All the insurable partners must insure for the amount to the extent of their capital.
Deed of partnership should contain a clause that the partnership is revocable definitely in case of demise of a partner. For this purpose, the partnership firm should have sufficient cash available and such ready cash will be made available, if the firm insures the lives of all the partners.
Nomination is not allowed.
Assignment is not allowed, except in the case of dissolution of partnership other than due to the death of the partner.
Plans allowed – only TERM ASSURANCE (T 822 & 823); T825 e-Term is not allowed.
Consent letter to be obtained for placing special endorsement in respect of dissolution of partnership for reason other than death of a partner.
Irrespective of SUC all proposal for partnership insurance must be referred to DO for decision.

REQUIREMENTS of Partnership Insurance

Proposal Form No 340.
Copy of Deed of partnership in force and supplementary deed duly attested by the partner authorised to sign the proposal.
Copies of Audited Balance Sheet and Profit and Loss account for last 3 years.
Copies of ITRs of the Firm for preceding 3 years duly attested by the authorised partner.
The copy of audited Balance Sheet containing schedule of partners’ Capital A/C.
Letter of authority in favour of partner signing the proposal.

QUANTUM OF INSURANCE

Maximum permissible amount is equal to the closing capital balance of the proposed insured partner as at the end of the previous financial year + proportionate amount of goodwill, depending on the share in profits of the individual partner. Goodwill is the total of last 3 years net profit.
Partnership insurance to all the partners should be insisted.

UNDERWRITING AUTHORITY – DO / ZO/ CO as per SUC

MEDICAL UNDERWRITING – As per SUC

MONITORING PROPOSAL DEPOSITS

Proposal deposit should be collected only in the name of the proposer, with proper agency code.
Ensure Proper deposit Type (Single / Block) is keyed in at the time of creation of deposit.

As proposal deposits pending for more than 180 days will automatically be taken to Unclaimed & outstanding deposits, all deposits should be followed up regularly, right from day one of its creation.

All the deposits should be either adjusted or refunded within 180 days.

Balance of proposal deposits outstanding after adjustments should be immediately refunded to the policyholders within 15 days.

While refunding deposits proper care should be exercised to ensure the identity of the proposer and KYC / AML guidelines are complied with. Original BOC receipt may be called for while refunding unadjusted / untouched deposits.
Utmost care should be taken on the proposal deposit created through claims module at the time of claim recycling. Ensure receipt of the proposal immediately on due date and confirm whether it is in the name of the claimant. Obtain claim recycling list from claims department every month and match with the BOCs to ensure proper adjustment is happening in respective claimant name. For claim recycling cases BO should open a control register with the BOC number details and once adjusted policy number to be posted.

PROPOSAL SCRUTINY

Proposals should be properly scrutinised before underwriting or forwarding a proposal to higher office.

Appropriate Proposal Form is used (F 300, 340, 360, Aadhar Stambh, / Shila etc.) form LIC of India .
Proposal Form should be filled correctly and completely. All the questions and sub questions should be answered fully.
Any Overwriting / white inking should be authenticated. In case of many corrections, a fresh proposal form should be filled. If there are any corrections in important questions / data, suitable letter confirming corrections signed by proponent & witnessed by the agent should be obtained.
In case of simultaneous proposal from the proposer, Multiple proposal addendum should be submitted, which should contain list of proposals with details of plan, term, S.A, mode, premium etc., and a declaration stating the consequences upon splitting should be signed by proposer & witnessed by Agent / DO. However, if proponent opts for a combination of plans requiring different specified proposal forms for Unit Linked / Annuity Plans, then separate proposal forms for such plans should be submitted.
Object of Insurance should correlate with nature of proposed plan.
If nominee is other than wife / children / parents, then suitable explanation is to be sought from proposer.
If the nominee is minor, Appointee should be notified and consent should be obtained in proposal. In case the appointee is other than the natural guardian & if the natural guardian is alive, then suitable explanation is to be sought from proposer.
BOC details should be shown, if not a Green channel completion.
Riders (AB, Term Rider, Critical Illness Rider etc.), if opted, should be written clearly as yes / no and rider SA to be clearly written in respective box.
Exact nature of occupation, employer details & number of years of service should be mentioned.
Actual income of the proponent from all sources should be given in proposal form & ACR to assess the financial sufficiency of the proposer. Both should match.
If occupation is hazardous (driller in oil, rig, fireman, driver etc) relevant occupation questionnaire should be enclosed to assess risk factors relating to occupation. If the proposer has driving license for
HTV, general occupation questionnaire should be obtained.
Details regarding all previous policy / simultaneous proposals should be given correctly to arrive at correct SUC / TRSA.
Details of proposal accepted with extra / postponed / declined / dropped / altered terms should be given to assess the risk accordingly.
It should be ensured that the premiums for the previous policies are paid up to date and are not paid up or lapsed.
The DOB, Place of birth, family history, previous policy details, physical measurements etc should be consistent with the previous policy. In case of drastic inconsistency, a letter giving the facts should be enclosed.
Family History should be given correctly, to assess hereditary risk factors. Correct cause of death and Age at death of family members should be given (especially when the age of death of family member is less than 60 years).
Proper reply to personal history question (physical measurement also) should be given and not as “Refer to Medical Report” Full details regarding lifestyle diseases, accidents, surgical history etc. should be given to assess the risk. Whenever any ailment or surgery is disclosed in the proposal, treatment details and discharge summary in case of hospitalisation should be obtained.
For house wives the details of husband’s income and insurance need to be furnished.
PEP (Politically Exposed Person) Question should be answered properly.
Bank details along with proof should be obtained for making future payment through NEFT.
Declaration in Proposal should be signed and properly witnessed. In case of Signature in vernacular / thumb impression declaration from proponent and person filling in the Proposal Form should be obtained properly.
ACR should be complete in all respects, giving correct income and confirming documents verified for the same.
Details regarding KYC / AML norms / terrorism should be answered.

If old proposal forms are used, updated addendum, addendum for F 340 / 360, Form 294, revised Sec 41, 45 & e-services addendum (whichever are applicable) should be enclosed.
PAN NO, MOBILE NO & e-MAIL ID OF THE PROPOSER SHOULD BE GIVEN AND THE SAME SHOULD BE KEYED IN AT THE TIME OF PROPOSAL REGISTRATION.
Proposal Form & other correspondences should be in English for cases which are referred to CO. All the proofs submitted should be in English (Bilingual).
ACR / MHR / Special MHR by the competent authority should be based on SUC. MHR should be completed in all respects giving name, designation of MHR giving authority. Agents have to mention their club membership details and Mobile No / email id in ACR / MHR.
MHR in Annexure I should be submitted for female categories A(ii & iii)
Age proof should clearly show the Date of Birth. Whenever the Life proposed is educated School / College certificate, passport, or employer ID may be insisted though PAN CARD, is a standard age proof. Please ensure that the DOB in all these proofs is the same. If the DOB in Previous policy differs, the age should be readmitted taking the higher age and difference in premium, if any, should be collected. Otherwise, a letter giving the reason for any such discrepancy should be obtained.
KYC: Recent Photo should be affixed in all proposals. ID & address proof should be given. Adress Proof should match with the communication address given in the proposal.
AML: PAN card copy, proof for source of Income viz. ITRs, Form 16, Bank account statement should be submitted depending upon financial underwriting limits / AML limits. Whenever bank statement is submitted, ensure that the statement is Individual’s statement for the latest 1 year period. If Firm’s account statement is submitted, proof that the proposer is the sole proprietor or partner of the firm specifying the percentage of shares in the firm, should also be obtained.
Income Proof should be based on TRSA: ITRs / Form 16 for latest 3 years/ CA certificate in LIC format / PFQ /Agricultural Income certificate from Tahsildar.
Special Medical Reports should be based on age last birthday and SUC and should be duly filled and signed both by LA and ME / Specialist.
In case of Physically Handicapped lives, Deformity Questionaire, Deformity MHR & Full size photograph are compulsory. Proposal on the life of Physically Handicapped minor or non-earning major life will not be considered.
For NRI Proposals: Copies of all pages of passport with latest VISA stamping, Employment contract, Salary Slips for latest 3 months along with Overseas bank account statement showing salary credits have to be obtained.
For Female life proposals: Necessary Income proof, Educational proof & MHR by competent authority are required.
For Minor Lives: Recent school going proof, Immunisation record, Matching Insurance of parents & Siblings & income proof of parents should be obtained. In case of grandparent proposing insurance on the life of minor, NOC from the parent, their income proof and matching insurance should be obtained.
For Major Student College going proof, Matching Insurance of parents & Siblings & income proof of parents should be obtained.
In case of non-earning major lives, F No 294, Income proof of parent, equal insurance for parent and siblings should be obtained.
All the proofs enclosed such as Age proof, Address proof, ITR etc should be self-attested by proposer and counter signed by Agent / DO.
Whenever a letter is submitted separately it should be properly witnessed by the agent / Development Officer and duly recommended / approved by the branch in charge.
Whenever female life is medically examined by a male doctor or vice versa, consent letter should be obtained.
All previous policies should be keyed in properly in the review slip so that correct SUC / TASA can be arrived at.
URINE COTININE TEST IS COMPULSORY FOR PROPOSALS UNDER TERM ASSURANCE & TERM RIDER WHERE THE TOTAL SUM ASSURED UNDER ALL PREVIOUS AND PRESENT PROPOSAL UNDER TERM ASSURANCE AND TERM RIDER IS MORE THAN 50 LAKHS.
Proposals should be registered with at least minimum proposal deposit to cover the medical & special report charges.
Whenever the life proposed is a divorcee, the divorce deed should be obtained to rule out divorce on medical grounds.

If you are LIC Agent or you want to be LIC agent then Partnership Insurance can become great sales tool to market.

If you are running a business with partners then also it is a great option for you.

What is Partnership Insurance?

Suppose Ram and Rahim owned a business .Ram looks after admin part whereas Rahim take care Sales and distributions of the business.

If Ram dies ,who will care admin part of the business as well as Rahim dies then Sales part of the business will ruin.

So anything goes wrong with any Partner of the company ,the compensation amount will go to other partner run the business soothly.

Conditions of Partnership Insurance

All the insurable partners must insure for the amount to the extent of their capital.

Deed of partnership should contain a clause that the partnership is revocable definitely in case of demise of a partner. For this purpose, the partnership firm should have sufficient cash available and such ready cash will be made available, if the firm insures the lives of all the partners.

Nomination is not allowed.

Assignment is not allowed, except in the case of dissolution of partnership other than due to the death of the partner.

Plans allowed – only TERM ASSURANCE (T 822 & 823); T825 e-Term is not allowed.

Consent letter to be obtained for placing special endorsement in respect of dissolution of partnership for reason other than death of a partner.

Irrespective of SUC all proposal for partnership insurance must be referred to DO for decision.

REQUIREMENTS of Partnership Insurance

Proposal Form No 340.

Copy of Deed of partnership in force and supplementary deed duly attested by the partner authorised to sign the proposal.

Copies of Audited Balance Sheet and Profit and Loss account for last 3 years.

Copies of ITRs of the Firm for preceding 3 years duly attested by the authorised partner.

The copy of audited Balance Sheet containing schedule of partners’ Capital A/C.

Letter of authority in favour of partner signing the proposal.

QUANTUM OF INSURANCE

Maximum permissible amount is equal to the closing capital balance of the proposed insured partner as at the end of the previous financial year + proportionate amount of goodwill, depending on the share in profits of the individual partner. Goodwill is the total of last 3 years net profit.

Partnership insurance to all the partners should be insisted.

UNDERWRITING AUTHORITY – DO / ZO/ CO as per SUC

MEDICAL UNDERWRITING – As per SUC

MONITORING PROPOSAL DEPOSITS

Proposal deposit should be collected only in the name of the proposer, with proper agency code.

Ensure Proper deposit Type (Single / Block) is keyed in at the time of creation of deposit.

As proposal deposits pending for more than 180 days will automatically be taken to Unclaimed & outstanding deposits, all deposits should be followed up regularly, right from day one of its creation.

All the deposits should be either adjusted or refunded within 180 days.

Balance of proposal deposits outstanding after adjustments should be immediately refunded to the policyholders within 15 days.

While refunding deposits proper care should be exercised to ensure the identity of the proposer and KYC / AML guidelines are complied with. Original BOC receipt may be called for while refunding unadjusted / untouched deposits.

PROPOSAL SCRUTINY

Proposals should be properly scrutinised before underwriting or forwarding a proposal to higher office.

Appropriate Proposal Form is used (F 300, 340, 360, Aadhar Stambh, / Shila etc.) form LIC of India .

Proposal Form should be filled correctly and completely. All the questions and sub questions should be answered fully.

Any Overwriting / white inking should be authenticated. In case of many corrections, a fresh proposal form should be filled. If there are any corrections in important questions / data, suitable letter confirming corrections signed by proponent & witnessed by the agent should be obtained.

Object of Insurance should correlate with nature of proposed plan.

If nominee is other than wife / children / parents, then suitable explanation is to be sought from proposer.

If the nominee is minor, Appointee should be notified and consent should be obtained in proposal. In case the appointee is other than the natural guardian & if the natural guardian is alive, then suitable explanation is to be sought from proposer.

BOC details should be shown, if not a Green channel completion.

Riders (AB, Term Rider, Critical Illness Rider etc.), if opted, should be written clearly as yes / no and rider SA to be clearly written in respective box.

Exact nature of occupation, employer details & number of years of service should be mentioned.

Actual income of the proponent from all sources should be given in proposal form & ACR to assess the financial sufficiency of the proposer. Both should match.

If occupation is hazardous (driller in oil, rig, fireman, driver etc) relevant occupation questionnaire should be enclosed to assess risk factors relating to occupation. If the proposer has driving license for

HTV, general occupation questionnaire should be obtained.

Details regarding all previous policy / simultaneous proposals should be given correctly to arrive at correct SUC / TRSA.

Details of proposal accepted with extra / postponed / declined / dropped / altered terms should be given to assess the risk accordingly.

It should be ensured that the premiums for the previous policies are paid up to date and are not paid up or lapsed.

The DOB, Place of birth, family history, previous policy details, physical measurements etc should be consistent with the previous policy. In case of drastic inconsistency, a letter giving the facts should be enclosed.

Family History should be given correctly, to assess hereditary risk factors. Correct cause of death and Age at death of family members should be given (especially when the age of death of family member is less than 60 years).

For house wives the details of husband’s income and insurance need to be furnished.

PEP (Politically Exposed Person) Question should be answered properly.

Bank details along with proof should be obtained for making future payment through NEFT.

Declaration in Proposal should be signed and properly witnessed. In case of Signature in vernacular / thumb impression declaration from proponent and person filling in the Proposal Form should be obtained properly.

ACR should be complete in all respects, giving correct income and confirming documents verified for the same.

Details regarding KYC / AML norms / terrorism should be answered.

If old proposal forms are used, updated addendum, addendum for F 340 / 360, Form 294, revised Sec 41, 45 & e-services addendum (whichever are applicable) should be enclosed.

PAN NO, MOBILE NO & e-MAIL ID OF THE PROPOSER SHOULD BE GIVEN AND THE SAME SHOULD BE KEYED IN AT THE TIME OF PROPOSAL REGISTRATION.

Proposal Form & other correspondences should be in English for cases which are referred to CO. All the proofs submitted should be in English (Bilingual).

ACR / MHR / Special MHR by the competent authority should be based on SUC. MHR should be completed in all respects giving name, designation of MHR giving authority. Agents have to mention their club membership details and Mobile No / email id in ACR / MHR.

MHR in Annexure I should be submitted for female categories A(ii & iii)

KYC: Recent Photo should be affixed in all proposals. ID & address proof should be given. Adress Proof should match with the communication address given in the proposal.

Income Proof should be based on TRSA: ITRs / Form 16 for latest 3 years/ CA certificate in LIC format / PFQ /Agricultural Income certificate from Tahsildar.

Special Medical Reports should be based on age last birthday and SUC and should be duly filled and signed both by LA and ME / Specialist.

In case of Physically Handicapped lives, Deformity Questionaire, Deformity MHR & Full size photograph are compulsory. Proposal on the life of Physically Handicapped minor or non-earning major life will not be considered.

For NRI Proposals: Copies of all pages of passport with latest VISA stamping, Employment contract, Salary Slips for latest 3 months along with Overseas bank account statement showing salary credits have to be obtained.

For Female life proposals: Necessary Income proof, Educational proof & MHR by competent authority are required.

For Minor Lives: Recent school going proof, Immunisation record, Matching Insurance of parents & Siblings & income proof of parents should be obtained. In case of grandparent proposing insurance on the life of minor, NOC from the parent, their income proof and matching insurance should be obtained.

For Major Student College going proof, Matching Insurance of parents & Siblings & income proof of parents should be obtained.

In case of non-earning major lives, F No 294, Income proof of parent, equal insurance for parent and siblings should be obtained.

All the proofs enclosed such as Age proof, Address proof, ITR etc should be self-attested by proposer and counter signed by Agent / DO.

Whenever a letter is submitted separately it should be properly witnessed by the agent / Development Officer and duly recommended / approved by the branch in charge.

Whenever female life is medically examined by a male doctor or vice versa, consent letter should be obtained.

All previous policies should be keyed in properly in the review slip so that correct SUC / TASA can be arrived at.

URINE COTININE TEST IS COMPULSORY FOR PROPOSALS UNDER TERM ASSURANCE & TERM RIDER WHERE THE TOTAL SUM ASSURED UNDER ALL PREVIOUS AND PRESENT PROPOSAL UNDER TERM ASSURANCE AND TERM RIDER IS MORE THAN 50 LAKHS.

Proposals should be registered with at least minimum proposal deposit to cover the medical & special report charges.

Whenever the life proposed is a divorcee, the divorce deed should be obtained to rule out divorce on medical grounds.