Customer Service
What this domain tests
Service questions test the journey from proposal to policy and the deadlines attached to each step - free look, grace period, grievance escalation and the conduct rules an agent must follow.
Core rules
- Proposal stage - the agent must explain the plan, fill the proposal in the proposer's presence and collect KYC documents under the PMLA/AML rules. Under Section 41 of the Insurance Act 1938, offering or accepting a rebate of premium is an offence.
- Free look - 30 days from the date the policyholder receives the document. Cancellation returns premium less proportionate risk premium for days on cover, medical examination charges and stamp duty.
- Grace period - 30 days for yearly, half-yearly and quarterly modes, 15 days for monthly mode. A death during the grace period is treated as in force if the due premium is paid later.
- Grievance redressal - complain first to the branch or LIC's online portal; the insurer must resolve within 14 days. Unresolved complaints go to IRDAI's IGMS/Bima Bharosa and then to the Insurance Ombudsman under the 2017 Rules, whose award binds the insurer if the complainant accepts it within 30 days.
- Turnaround times - policy issue, premium receipt, duplicate policy and nomination change all follow published service standards.
Worked example
A policy is received on 5 March with an annual premium of ₹40,000, of which ₹2,000 is stamp duty and ₹1,800 is medical fee. If cancelled on 20 March after 15 days of cover and the proportionate risk premium is ₹600, the refund is 40,000 − 600 − 2,000 − 1,800 = ₹35,600.
Traps
Starting the free-look clock from the date of issue instead of receipt; offering a rebate as "service"; inventing a settlement date the ombudsman timeline does not support.