Insurance Agreement
An insurance agreement establishes the legality of the contract between the insured and the insurer. It pens down the terms and conditions agreed between both the parties and give it a legal recognition. It is the document that is referred to by either of the party in case a dispute occurs between them.
The insurance agreement binds the insurer legally that he will have to pay the insured or his representative, more specifically his nominee the amount of sum due to him. It also mentions the conditions and the amount of premium the insured must pay to legally claim his dues.
Benefits for the insured
It is the most important document that you have after you have transferred your risk to the insurer. In the case of the death of the insured, the nominee doesn’t know the terms agreed by the insured. It is only the insurance document that will stand by him and give him the clear picture of the contract and will help him to realize his dues.
Also, the insurance agreement, gives details of the charges and details of any bonus that the insurer is entitled to. In short, the insurance agreement provides transparency and legality to the contract between the insured and the insurer.
