What is the FPR Full Form in Insurance?
The FPR full form in insurance is the First Premium Receipt. This document is the confirmation statement of receiving the insurance policy. This is an important document as it gives the date of assumption of the risk, but it does not have value until the policy document has been issued. The receipt will verify the insurance coverage and insurance payments, and it also protects the insurance and the finances of the policyholder.
Importance of FPR:
The insurance plan will be valid only of the first premium is paid and is proved by the first premium receipt. They are crucial instruments to prove insurance coverage and, at times, resolve disputes. The date, premium amount and payment method that are listed in the first premium receipt can be subjected to legal verification if required. The insurance company will also activate the insurance coverage after receiving the FPR.
FPR in claims process and policy renewal:
The First Premium Receipt is an important document to expedite claims. This receipt generates the insurance contract and the introductory provisions of the insurance. It is also a crucial instrument at the time of policy renewal as it shows the previous payments made by the insured.