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Term life proposal rejected because of pincode

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27 Mar, 2021 by  Clinton Fernandes

Hi, I am a 37 y.o male from Jharkhand. I recently applied for a term insurance with Max Life for Rs 50 lakh cover, and paid premium of around Rs 15,000 on it. I have no PED or morbidities, but my proposal was rejected. The rejection states that my income is lower than required. I earn Rs 9.42 lakh annually, and policy cover is Rs 50 lakh, yet Max Life states i need minimum Rs 10 lakh income for my pincode. Are they right here or should i escalate this matter to the Ombudsman?

Term Life Insurance

2 Answer

27 Mar, 2021
CEO, Insurance Samadhan

Dear Clinton

There seems to be something wrong . It is not possible that your proposal is not accepted as per reasons below

  1. At you age , you can get cover of 20 times of your income I.e upto rs 1.90 crore .
  2. Max life will also ask for your Income tax return . Did you submit your ITR ?
  3. Term insurance also demand your education level . Max life offer term to graduate and above . Did you declare your education
  4. If you are graduate and file ITR then I can talk to Maxlife for acceptance of your Proposal .

Pl give me your Policy number

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30 Mar, 2021
We breathe insurance :)

Hello Clinton,

  • Yes, certain insurers do use pin codes to profile you as a customer - so this restriction is very much possible. From what we hear, the restrictions are only going to increase in the future. (Appealing to Ombudsman won't be helpful here if this is as per their approved underwriting policies.)
  • We would recommend you immediately explore with another insurance company immediately. Do not delay beyond this month-end.

Hope this is useful.


Team Beshak

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