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Updated on October 4, 2023

There are two parties to an insurance contract, the insured and the insurer. The insurance contract is usually initiated by the insured party seeking insurance coverage for themselves and their family. The meaning of proposer in an insurance contract is explained here.

Meaning of Proposer

The term “Proposer” refers to the individual who initiates the process of acquiring an insurance policy. This role is pivotal because it marks the beginning of the insurance relationship between an individual or entity and the insurance company. The Proposer can be an individual, a family, or a business entity seeking insurance coverage for various purposes, such as protection against risks, financial planning, or compliance with legal requirements.

What is the role of Proposer?

Initiating the Insurance Application – The Proposer initiates the insurance process by expressing interest in a specific insurance type, such as life, health, motor, or property insurance.

Providing Personal and Asset Information – The Proposer is required to furnish comprehensive information about themselves or their business, including personal and financial details, as well as information about the assets or individuals to be insured.

Selecting Coverage and Policy Terms – The Proposer makes critical decisions about their insurance, such as choosing coverage amounts, policy duration, and any additional features like riders, aligning them with their financial objectives.

Payment of Premiums – The Proposer is responsible for making timely premium payments to keep the policy active, with premiums being periodic payments (monthly, quarterly, etc.) that ensure continuous coverage.

Policy Ownership and Beneficiaries – As the Proposer, they own the policy and have the authority to name beneficiaries, typically loved ones, who would receive the policy benefits in case of an insured event, such as in life insurance.

Filing and Managing Claims – In the event of a covered incident, the Proposer or their beneficiaries have the right to submit a claim to the insurance company, which will assess and provide benefits as specified in the policy contract.