When creating a (new) policy 3 fields are automatically calculated: Start Date, Expiry Date and Value
These values are calculated based on:
Product (or insurance scheme)
Family composition (only influences the Value)
The user-defined Enrollment Date (influences both start/expiry dates and Value)
The Start Date is calculated based on:
The user-defined Enrollment Date
The Product Administration Period
The Product Enrollment Grace Period
The Product Start Cycles (1,2,3,4)
Rules:
If the product has an Administration Period, the period is systematically (blindly) added to the enrollment date provided by user (and the rest of the calculation is based on this new shifted enrollment date).
If the Product has no Start Cycle, the Start Date = the Enrollment Date + Grace Period (if there is one)
If the Product has 1 (or more) Start Cycle, the Start Date = next cycle start (if enrollment within the grace period of the next cycle start)
Examples (with product of screenshot):
if Enrollment Date = 23/10/2020, then Start Date = 01/11/2020 (because 23/10/2020 < 01/12/2020 i.e. November cycle + 1 month grace)
if Enrollment Date = 15/11/2020, then Start Date = 01/11/2020 (because 15/11/2020 < 01/12/2020)
if Enrollment Date = 12/12/2020, then Start Date = 01/06/2021 (next year first cycle)
The Expiry Date is calculated based on:
The policy Start Date
The Product Insurance Period
Rule:
The policy Expiry Date = policy Start Date + Insurance Period months - 1 day
Examples (with product of screenshot):
if start date = 01/11/2020, then Expiry Date = 31/10/2021
The Value is calculated based on:
The Family composition (number of adults and number of children)
The Product Maximum Members parameter (limiting the covered family members)
The Product Contributions params: Lump Sum, Threshold Members, Contribution Adult, Contribution Child,
The Product Registration params: Registration Lump Sum and Registration Fee
The Product Assembly params: Assembly Lump Sum and Assembly Fee
The Product Enrollment Discount and Enrollment Discount Period
The Policy Value is the sum of 3 ‘buckets’ (contributions, registrations and assembly) minus a discount:
Value = Contributions + Registrations + Assembly - Discount
Except the discount (which depends on enrollment date), these values only dependent on the family composition. If the Product has a Maximum Members, family members are ordered based on their creation (i.e. recording in system) date time and all members beyond the Maximum Members parameter are simply not taken into account in any calculation.
In other words, the order in which the user records the family members may change the policy value (for example, if he records all the children first, the ‘child contribution’ will be used, while the adults count will be capped).
(remaining) Family members are ‘classified’ (counted) in 4 categories:
adults in ‘standard’ family relationships (like husband, brother,…) - further called adults
adults in ‘other’ family relationship (i.e. special value of the binding relationship) - further called other adults
children in ‘standard’ family relationships (like son, brother,…) - further called children
children in ‘other’ family relationships - further called other children
There are 2 major strategies to compute contributions part: with a lump sum or without.
Without lump sum, the contributions amount is simply computed as “all” adults * adult contribution + “all” children * child contribution. There is no distinction by ‘relationship’ (so adults/other adults and children/other children are counted “equally” in the contribution part).
With lump sum, the base amount is the defined lump sum, where we add:
the “other” adults/children (* their relative contributions)
if there is a “Threshold members”, the count above that threshold * their relative contributions.
Notes:
the threshold doesn’t concern the ‘other’ adults/children (which are ‘always’ added on top the lump sum)
the threshold first ‘consumes’ the (non-other) adults counts, before adding the children
Example: for a product with 10.000 lump sum, 1.000 adult contribution, 500 children contribution and a threshold members at 5
A family with 2 (non-'other')adults and 3 (non-'other')children will have a contribution = 10.000 (the lump sum).
A family with 1 adult, 1 ‘other’ adult and 8 (non-'other') children will have a contribution = 10.000 + 1.000 (the ‘other’ adult) + 4*500 (members above threshold = 1 + 8 - 5)
The 2 same major strategies applies to registrations part calculation: with or without lump sum.
However, the calculation doesn’t take any member characteristic into account (adult/child nor ‘others' vs ‘non-others’):
with a registration lump sum, the registrations part is the lump sum
without the lump sum, the amount is simply the number of members * registration fee
The assembly follow the exact same logic as the registrations part: 2 strategies (with and without lump sum) and, without lump sum, all members are equally.
The discount is a simple percentage of the 3 other ‘buckets’ (contributions + registrations + assembly) which is applied only if the enrollment date is before the start date - enrollment discount period.
Example:
For a product with a Enrollment discount of 10% and a Enrollment Discount period of 1 month, if the registrations + registrations + assembly = 10.000, the enrollment date 05/04/2021 and a start date of 01/06/2021 (cfr. start date calculation to reach this situation). Since 05/04/2021 < 01/05/2021 (01/06/2021 - 1 month), there will be a discount of 1.000.