Document background
The Insurance Proposal is a fundamental document in the Indian insurance industry, serving as the primary means of initiating an insurance contract between the insurer and the proposer. This document is mandated by the Insurance Act 1938 and subsequent IRDAI regulations, requiring specific disclosures and declarations from both parties. The proposal form collects essential information about the risk to be insured, allowing insurers to assess and price the risk appropriately. It becomes particularly crucial as it forms the basis of the principle of utmost good faith, a cornerstone of insurance contracts in India. The document must be completed with accurate information as any misrepresentation can void the subsequent insurance policy. Used across various types of insurance including life, health, property, and general insurance, the proposal form varies in content based on the type of coverage sought while maintaining compliance with regulatory requirements.
