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The importance of insurance policy bonds is immense — it is required at the time of settlement of claims on the policy. You would require it even if you want to take a loan pledging the policy.
Therefore, you should keep the policy bond at a safe place and not lose it. But in the unfortunate scenario of losing it, there is no need to panic.
Your right
As a policyholder you have the right to get a duplicate policy bond in case you lose the original one. Life Insurance Corporation of India (LIC), the country’s largest insurer, also provides duplicate policy documents to its customers. But there is a process everyone has to follow.
Please note that a duplicate policy confers on its owner the same rights and privileges as the original policy.
Report fast
In case you lose the policy bond, you have to inform the insurer at the earliest about the loss.
There is a simple procedure to be followed by the policyholder while applying for the duplicate policy at the servicing branch.
Procedure
In some cases, LIC insists on publishing an advertisement at the policyholder’s cost in one English daily newspaper regarding the loss of policy bond. A copy of the newspaper in which the advertisement is published should be sent to the servicing office one month after its appearance.
The process does not end here. If no objection is raised with LIC by anyone regarding the policy in question, then you need to file an indemnity bond.
Charges
LIC would also charge you for preparing duplicate policy and stamp fee. After complying with all procedures, you will get a duplicate LIC policy document.
Exemptions
However, in certain circumstances the requirement of advertisement and indemnity bond may be modified by LIC authority. These cases are:
1. Loss of policy by theft
2. Destruction of policy by fire
3. Loss of policy while in custody of an office of government
4. Mutilated or damaged policy
5. Policy in torn and a part of it is missing
6. Policy partially destroyed by white ants
7. Policy bond partially destroyed due to natural causes