Proof of age / date of birth

The basis of life insurance is rate of mortality of the population. In annuity calculations it is the rate of survival of the population at each age. The basic premium calculation depends on mortality. Moreover rate of mortality increases with age. When a cover is offered to some one, say for 20 years, the insurer should have a reasonable expectation on his survival after 20 years. As age advances age related illnesses step in. More over mortality of the proposer may be increased due to family history related risks.

I may refer here a real life example that has come before me for decision. A proposer was aged 33 years. He had no previous life insurance cover    and he proposed for a fairly high sum for cover. When his family history was gone through I found that his father   and three elder brothers died at 33 years of age (before reaching 34) due to heart attack. So the object of insurance was pure risk cover    and it was a case of selection against the insurer. 

In the past even when documents of age proof were not available insurance used to be granted with a condition that age proof shall be submitted before maturity of the policy. Before settling any claim the insurer can insist for proof of age. This is provided in the policy conditions as also in the IRDA (Protection of Policyholder’s Interests) Regulations, 2002. Regulation 6(4) reads, “in respect of a cover, where premium charged is dependent on age, the insurer shall ensure that age is admitted as far as possible before issuance of the policy document. In case age has not been admitted by the time policy is issued, the insurer shall make efforts to obtain proof of age and admit the same as soon as is possible”

If age is not admitted initially some other problems too can come up. For example: A purchases a policy claiming that his age is 22 years, without age proof. Later it is found that he was 17 years only at the time of proposal, which means he was a minor not competent to contract at that point in time. The policy becomes void ab initio. It has to be cancelled and all premiums received should be refunded. In another case, A claims that he is 42 years of age and asked for a policy for 18 year term. Under policy rules the maximum maturity age allowed under the said policy is 60 years. When proof of age is submitted it is found that A is 52 years old at the time of proposal. That means the policy asked for cannot be given to him. Again, it results in a cancellation of policy once issued. When proofs are submitted many a time age varies and it involves correction / revision of premium and collection of arrears or refund of excess premium collected.

To avoid all these it is appropriate that proper proof of age is collected at the time of grant of insurance. Proper proof of age/date of birth includes copy of Birth Certificate issued by government authorities, Date of birth available in school / college records, Date of birth available in employer’s records etc.