Ram Kumar was highly successful sales manager in XYZ Life Insurance Co. An expert salesman, he was often approached by his agents for help in finalizing high sum assured policies. During one of his high profile get-toget

Ram Kumar was highly successful sales manager in XYZ Life Insurance Co. An expert salesman, he was often approached by his agents for help in finalizing high sum assured policies. During one of his high profile get-togethers, one of the film stars showed a keen interest in taking an insurance policy. The film star was looking for a high sum assured covers i.e. ₹50 crore. Ram Kumar was keenly interested because he had not dealt with such a big value policy so far. After coordinating with one of his agents. Ram Kumar played a key role in finalizing the deal. All his energies were now focused on getting this proposal passed by the underwriting department. All special medical reports required were quickly secured and filed with that department. Ram Kumar also recommended the company to issue the policy. The underwriting department was headed by Anshuman, who was more concerned for quality than quantity of business. Anshuman thought it was his duty as the underwriter to have strict control over new business flowing into the organization. Ram Kumar and his people, on the contrary, believed that new business was important for the growth of the company and therefore the underwriters should not be allowed to affect the flow of new business by being rigid. When the proposal came back from Head Office after scrutiny, Ram Kumar found that the proposal for a cover of ₹50 crore had been modified to ₹50 crore on a short term plan basis. State: The consequences that could be faced by an under-writer by adopting flexible and easy underwriting control.