RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

How to cope up with an 'orphan' life insurance policy

down-arrow
How to cope up with an 'orphan' life insurance policy
March 16, 2019
Have you bought your life insurance policy from an agent? Yes, the very same lot that would do their best to sell the policy to you highlighting the positives (mostly) and help you with all the details of applying for a new policy right from the scratch. They are so diligent that they would also remind you about your premium updates, as well as what is due when. However, if for some reason, you don't receive any update from them for a long time, reason being that they have left the organization. Chances are you may feel "orphaned".

The insurance agents are the one point of contact between the insurer and the insured. His role becomes pertinent when you have to renew your policy. However, if an agent switches profession or leaves the company he worked with earlier, clients are left in the lurch. Consequently, the client's policy might lapse or premium payment gets delayed. Such clients are called orphan life insurance policyholders.

According to the 2010-11 IRDAI Annual Report, the total number of agents appointed by life insurance companies was 5.65 lakh, while the number of agents terminated was 8.01 lakh. To meet the orphaned policyholders' demand and help them, the IRDAI has come up with a set of guidelines.

Here is a guide to the scenarios you may encounter as an insured, and the action you will need to take:

  1. Agent quits the insurance industry

    Whether an agent is there or not, the staff at the insurance company has to offer you the services as promised in their policy. The company will assign a new agent as per the following guidelines:

    • Only an orphan policy that remains lapsed (i.e., premium remains unpaid after six months of the due date)
    • Single premium policies or policies on which no further premium is due are not eligible
    • The insurer will have to notify particulars of "Allottee Agent" to the policyholders concerned
    • If you surrender the policy after the allotment but before revival, the insurer will not be liable to accept new business from the same allotted agent for the same policyholder until six months from surrendering the orphan policy
    • The number of policies allotted to the agent cannot exceed 20 per cent of the total number of active policies introduced by him.
    • You will be informed about the changes by the company however, you will be asked to check on the details with an inhouse team on your own.

  2. Agent ends business relation with your parent insurance company

    The policy isn't orphaned if the agent terminates agreement with your insurance company however, carries on with another insurer. In that case, the same agent can continue with your services. Further, if the agent has served the policy for five years, they can continue to receive commission.

  3. Agent bank and insurance company end their ties

    There are banks that sell insurance products that contribute to the insurer's business. However, many also end their partnerships with the insurers. Take the case of IndusInd Bank scrapping its insurance partnership with Aviva to sign a fresh agreement with Birla Sun Life Insurance.

    Consequently, a policyholder is troubled if there is any change in the bank's insurance partner. To combat this problem of "orphaned" state, there are call centers of insurance companies that cater to policyholders.

  4. You don't like the services of the agent

    You can always end the services of the existing agent if you are dissatisfied with his services. You can seek help from the insurance companies directly.

What are your responsibilities as a policyholder

Reach out to the insurance company through all means - email, call centers, visiting nearby branches etc.

Keep yourself up-to-date with your policy renewal.

Provide accurate and true information to the insurer.

HDFC Life offers numerous term insurance plans that are aimed at securing your financial future and safeguarding the fiscal security of your loved ones.

Show Full Article
Hide Full Article

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Insurance Advisor Articles Insurance Advisor Articles

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

The Secret to Wealth? It’s These Small Steps! or Here’s How Small Wins Make You Rich

The Secret to Wealth? It’s These Small Steps! or Here’s How Small Wins Make You Rich

The Secret to Wealth is in small wins in finance. The big math behind small wins leads to big steps towards long-term security and a future of financial success.

What Are Bond Funds? Meaning, Benefits, Types and How It Works

9 Types of Life Insurance

What are the key differences between Life and General Insurance?

Most of us are confused between life and general insurances. Knowing the difference between the two is important to invest in the right plan for yourself. HDFC Life in this article highlights the key differences between the two for your better understanding.

What are the key differences between Life and General Insurance?
How to download Aadhaar online Previous
Share Trading For Wealth Creation: What Must You Know Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches