While filling up a Mutual fund form you are filling up an OFFER DOCUMENT – the mutual fund is making you an offer and you are filling up the form and giving a cheque. If your cheque goes through, the CONTRACT IS COMPLETED.
In case of INSURANCE, you are filling up a PROPOSAL FORM – you are proposing to the insurance company. You are saying ‘this is my name, this is my health, this is my income,……so please accept my form and issue me insurance.’ If your cheque is valid, the insurance company will call you for a process of underwriting.
Please remember the word Offer, acceptance, Proposal and CONTRACT come from the Indian Contract Act, 1872. Thus you are filling up a very important contract – more with insurance than with mutual fund perhaps. It is ABSOLUTELY necessary that you fill in the TRUTH – and not let some stupid, idiotic, half literate agent of wealth manager fill up the form. I am hearing of too many cases where the agent / bank manager found it convenient to hide illnesses – AS MUCH AS A CANCER PATIENT (with cancer having been treated successfully) was hidden. Obviously the claim was not paid (he was a celebrity from the film industry).
PLEASE do remember if you tell a lie on the insurance form, YOU ARE LYING to the beneficiary (parent, wife and / or kids) – because the CLAIM will NOT GET PAID. Insurance companies do not like to pay claims. Telling lies on the form is the stupidest thing to do – and a suggestion that many many agents will happily give you.
Moneylife Foundation (Debashis Basu and Sucheta Dalal) are organising a seminar on 10th Dec. at Dadar…in the morning. See if you can make it….I will not be able to make it, my loss 🙁
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