Explanations:The question revolves around the applicability of MWPA (Modified With Premium Addition) in the context of an existing insurance policy. MWPA is a feature that allows policyholders to increase the sum assured of their insurance policy without undergoing a medical examination. However, the key point to understand is the timing of when MWPA can be applied.
Insurance policies often come with various features and options that can be selected at the time of inception, which is when the policy is first taken out. MWPA is one such feature that can be chosen at the time of inception. Once the policy is in effect, the policyholder cannot apply MWPA to increase the sum assured. This is because the insurance company has already assessed the risk and set the premium based on the initial conditions and the sum assured at the time of inception.
In the given scenario, Mr Harshal has a policy that is two years old. He learned about MWPA and wants to apply it to his existing policy. However, since MWPA can only be applied at the time of inception, he cannot do so now. The policy has already been in effect for two years, and the terms and conditions, including the sum assured, have been set. Any changes to the sum assured would require a new assessment, which would typically involve a medical examination and possibly a change in premium.
It is important to note that while MWPA cannot be applied to an existing policy, there may be other options available to increase the sum assured, such as a rider or a policy modification that requires a medical examination. However, these options are different from MWPA and have their own specific conditions and requirements.
Therefore, the correct answer is that MWPA can only be applied at the time of inception, and Mr Harshal cannot apply MWPA to his existing policy that is two years old.