What is a Policy Bond?
A policy bond is an important document furnished by LIC when issuing an insurance policy to a customer. Once the policyholder’s proposal is accepted by LIC, a legalised policy bond is provided that predominantly contains the conditions and privileges made available to the policyholder. LIC covers the risk only after the policyholder has accepted the said proposal.
Is Policy Bond an Important Document?
A policy bond fundamentally reflects various services the policyholder is entitled to, terms and conditions surrounding his/her policy, and so on. During certain servicing interactions, the policy bond is referred to by LIC, therefore, it is imperative for the bond to be physically safe. Additionally, the policy bond is also required when the policyholder makes a claim and LIC subsequently settles the same. The policy bond will also be required when the policyholder is availing a loan or is assigning the existing policy. It is also important that the policyholder saves a soft copy of the policy bond in case it gets misplaced. Keeping one’s immediate family members informed about the location of the policy bond is always a good idea.
How to Obtain a Duplicate Policy Bond from LIC
From the perspective of the Corporation, a policy bond is the most important document for a policyholder as it acts as the main evidence for the issued policy.
In case the policy bond is misplaced due to reasons like home renovation or moving to a new location, a new bond, also known as duplicate bond is issued to the policyholder after a certain period of time. The following process needs to be adhered to by the policyholder in order to obtain a duplicate policy bond from LIC:
- Form. 3762 content is first generated on to a stamp paper of Rs.100 that is non-judicial in nature.
- This form is then authorised by a notary and is signed by the policyholder as well. An additional form/questionnaire is also required to be filled by the policyholder.
- The questionnaire contains questions on how the policy bond got misplaced, if any efforts have been made to recover the same, and so on. This is a mandate from LIC.
- Along with the forms, identity proof and proof of address (of the policyholder) will also be asked for by LIC.
- The incurred stamp charges are paid by the policyholder to LIC which in turn, varies from one LIC plan to another.
- Once all the above-mentioned steps have been accomplished by the policyholder, LIC sends across a duplicate policy bond to him/her within a period of two days.
Important Things to Keep in Mind:
- If the policy bond has been destroyed by natural disasters like flood or fire LIC issues a duplicate bond in such cases. However, if the policyholder has managed to salvage a part of the physical copy of the bond, then the same has to be provided as evidence to LIC.
- If the policy has been missing due to unknown factors, the same reason needs to be mentioned to LIC after which a duplicate bond will be issued.
Sometimes, an advertisement in an English daily newspaper along with Indemnity Bond is required to obtain a duplicate policy bond from LIC.