Life Insurance Corporation of India Presents,
New Endowment Plan table no 814
1. INTRODUCTION:It has been decided to introduce LIC’s New Endowment Plan (Plan No. 814) with effect from 3rd January, 2014.
The Unique Identification Number (UIN) for LIC’s New Endowment Plan is 512N277V01. This number has to be quoted in all relevant documents furnished to the
Policyholders and other users (public, distribution channels).
This is a regular premium paying conventional WithProfits Endowment Assurance plan. The
benefits and other details of the plan are given below.
2. BENEFITS:
The benefits payable under an inforce policy are as under:
a) Benefits payable on death:
On death of the Life Assured during the policy term the Death Benefit, defined as sum of
“Sum Assured on Death”, vested Simple Reversionary bonuses and Final Additional bonus,
if any, shall be payable, where, “Sum Assured on Death” is higher of Basic Sum Assured or
10 times of annualised premium.
This Death Benefit (as defined above) shall not be less than 105% of total premiums paid as
on date of death.
The premiums mentioned above exclude taxes, extra premium and rider premiums, if any.
b) Benefits payable on maturity:
On survival to the end of the policy term, Basic Sum Assured along with vested Simple
Reversionary bonuses and Final Additional bonus, if any, shall be payable.
c) Participation in Profits:
Depending upon the Corporation’s experience the policies shall participate in the profits and
shall be eligible for simple reversionary bonus at such rate and on such terms as may be
declared by the Corporation.
Final Additional Bonus may also be declared under the policy which will be payable on the
expiry of the policy term or on earlier death provided the policy has run for certain minimum
term.
3. OPTIONAL BENEFIT:
This plan provides the following optional rider by payment of additional premium:
LIC’s Accidental Death and Disability Benefit Rider UIN ( 512B209V01): LIC’s Accidental Death and Disability Benefit Rider is available as an optional rider by payment of additional premium during the term of the policy. If there be more policies than one and if the total Accident Benefit exceeds Rs.50 lakhs, the benefits shall apply to the first Rs. 50 lakhs Sum Assured in order of date of policies issued. If this benefit is opted for, an additional amount equal to the Accident Benefit Sum Assured is payable on death due to accident, provided the rider is in force at the time of accident. In case of accidental permanent disability (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived. If the policy becomes a claim before the expiry of the said period of 10 years, the disability benefit installments which have not fallen due will be paid along with the claim amount.The premium rate for this rider is as under;
i) Rs. 1.00 per thousand Accident Benefit Sum Assured irrespective of age.
ii) Rs. 1.50 per thousand Accident Benefit Sum Assured, if the Life Assured is engaged in police duty (which excludes administrative assignments) in any police organization other than paramilitary forces and opts for this cover while engaged in police duty.
This benefit will be available only till the policy anniversary on which the age nearer birthday of the Life assured is 70 yrs or till the policy term, whichever is earlier. The premium for this benefit shall not be required to be paid from the policy anniversary at which the benefit ceases. Accidental Death and Disability Benefit Rider shall not acquire any paid-up value and the rider benefit will cease to apply, if policy is in lapsed condition.
Beyond the specific details as mentioned in this circular in respect of this rider, additional details i.e. requirements of claim, definition of disability etc, may be referred from the rider circular.
4. ELIGIBILITY CONDITIONS AND RESTRICTIONS:
For Basic Plan:
1) Minimum Age at entry for Life Assured : 8 years (completed)
2) Maximum Age at entry for Life Assured : 55 years (nearest birthday)
3) Minimum Policy Term : 12 years
4) Maximum Policy Term : 35 years
5) Minimum Basic Sum Assured : Rs. 1,00,000/
6) Maximum Basic Sum Assured : No Limit
7) Maximum Maturity Age for Life Assured : 75 years (nearest birthday)
The Basic Sum Assured shall be in multiples of Rs. 5000/.
Age at entry for the Policyholder is to be taken as age nearest birthday except for the minimum
age at entry i.e. 8 years.
For Accident and Disability Benefit Rider:
1) Minimum Entry Age : 18 years (completed)
2) Maximum Entry Age : 55 years (nearest birthday)
1. Maximum Cover ceasing Age : The cover can be opted for at any policy anniversary during the policy term but before the policy anniversary on which the age nearer birthday of the Life Assured is 70 years.
3) Minimum Accident Benefit Sum Assured : Rs. 1,00,000/
4) Maximum Accident Benefit Sum Assured: An amount equal to the Basic Sum Assured
subject to the maximum of Rs.50 lakh overall limit taking all existing policies of the Life Assured under individual as well as group policies including policies with in built accident benefit taken with Life Insurance Corporation of India and the Accident Benefit Sum Assured under the new proposal into consideration.
The Accident Benefit Sum Assured shall be in multiples of Rs. 5,000/.
5. MODE OF PREMIUM PAYMENT:
The modes of premium payment allowable are Yearly, Half Yearly, Quarterly, and Monthly
(ECS or through salary deductions).
6. PREMIUM RATES:
The tabular premium rates per thousand Basic Sum Assured are enclosed as Annexure 1.
The Class – I extra premium rates per thousand Basic Sum Assured are enclosed as
Annexure 2.
The above premium rates are exclusive of taxes.
7. GRACE PERIOD FOR PAYMENT OF PREMIUM:
A grace period of one calendar month but not less than 30 days will be allowed for payment of yearly or halfyearly or quarterly premiums and 15 days for monthly mode of premium payment.
If the death of the Life Assured occurs within the grace period but before the payment of premium then due, the policy will be treated as in inforce and the benefits are paid after deduction of the said unpaid premium and also the unpaid premium/s falling due before the next policy anniversary. If premium is not paid before the expiry of the days of grace, the Policy lapses. If the Policy has not lapsed and the claim is admitted in case of death under the policy where the mode of Payment of Premium is other than yearly, unpaid premiums, if any, falling due
before the next policy anniversary shall be deducted from the claim amount. The above grace period will also apply to rider premiums as the rider premiums are to be paid along with Basic premium.
8. REBATES:
The rebates for basic plan are as under:
Mode Rebate:
Yearly mode : 2% of tabular premium
Halfyearly mode : 1% of tabular premium
Quarterly and monthly mode : NIL
High Basic Sum Assured Rebate:
Basic Sum Assured Rebate (Rs.)
1,00,000 to 1,95,000 : Nil
2,00,000 to 4,95,000 : 2.00 ‰ Basic Sum Assured
5,00,000 and above : 3.00 ‰ Basic Sum Assured
9. PAID-UP VALUE:
If, after atleast three full years’ premium have been paid and any subsequent premiums be not duly paid, this policy shall not be wholly void, but shall subsist as a paidup policy. The Basic Sum Assured under the policy shall be reduced to such a sum, called Paidup Sum Assured, and shall bear the same ratio to the Basic Sum Assured as the number of premiums actually paid bears to the total number of premiums originally stipulated for in the policy i.e. Basic Sum Assured *(no. of premiums paid / Total number of premiums payable). Such Paid up policy shall thereafter be free from all liabilities for payment of the within mentioned premiums, but shall not be entitled to participate in future profits. However, the vested simple reversionary bonuses shall remain attached to the reduced paid up policy. This PaidUp Sum Assured along with vested Simple Reversionary bonuses accrued till the date of policy becoming paidup is payable on the expiry of policy term or on Life Assured’s prior death.
Notwithstating what is stated above, if at-least three full years’ premiums have been paid in respect of this policy, and any subsequent premium be not duly paid, in the event of the death of the Life Assured within six months from the due date of first unpaid premium, Basic Sum Assured along with vested Simple Reversionary bonuses and Final Additional bonus, if any, will be paid as if the policy had remained in full force after deduction of (a) the premium or premiums unpaid for the basic policy with interest thereon upto the date of death, on the same
terms as for revival of the Policy during such period and (b) the unpaid premiums for the basic policy falling due before the next Policy anniversary. Notwithstating what is stated above, if at least five full years' premiums have been paid in respect of this policy, and any subsequent premium be not duly paid, in the event of death of the Life Assured within 12 months from the first unpaid premium, Basic Sum Assured along with vested Simple Reversionary bonuses and Final Additional bonus, if any, will be paid as if the policy had remained in full force after deduction of (a) the premium or premiums unpaid for the basic policy with interest thereon upto the date of death, on the same terms as for revival of the Policy during such period and (b) the unpaid premium for the basic policy falling due before the next Policy anniversary. These provisions do not apply to Accidental Death and Disability Benefit rider as it does not acquire any paid up value and the rider benefit cease to apply, if policy is in lapsed condition.
10. SURRENDER VALUE: The policy can be surrendered at any time during the policy term provided atleast three full
years’ premiums have been paid. Guaranteed Surrender Value: The Guaranteed Surrender Value shall be a percentage of total premiums paid (net of taxes) excluding any extra premiums and premiums for rider, if opted for. This percentage will depend on the policy term and policy year in which the policy is surrendered.
In addition, the surrender value of vested Simple Reversionary bonuses, if any, shall also be payable, which is equal to vested bonuses multiplied by the Surrender Value factor applicable to vested bonuses.
Special Surrender Value: Corporation may however, pay Special Surrender Value as applicable as on the date of surrender, provided the same is higher than Guaranteed Surrender Value. The Special Surrender Value will be the discounted value of the sum of Paidup Sum Assured (as defined in Para 11) and the vested Simple Reversionary bonuses. The discount factors shall be the surrender value factors as provided in Table1A of Special Surrender Values booklet used for Endowment Assurance plan, and will depend on the policy term and the duration elapsed since the commencement of the policy.
11. REVIVALS:
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy may be revived during the life time of the Life Assured, but within a period of 2 consecutive years from the date of first unpaid premium and before the date of maturity, on submission of proof of continued insurability to the satisfaction of the Corporation and the payment of all the arrears of premium together with interest (compounding halfyearly) at such rate as fixed by the Corporation from time to time.
The Corporation reserves the right to accept at original terms, accept at modified terms or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated to the Life Assured.
Revival of Accidental Death and Disability Benefit rider, if opted for, will also be considered only along with revival of the Basic Policy, and not in isolation.
12. LOAN:
Loan facility is available under this plan, after payment of premiums for at least 3 full years subject to following conditions:
a) The maximum loan that can be granted as a percentage of surrender value for different policy terms.
b) The rate of interest to be charged for the loan amount would be determined from time to time by the Corporation.
c) No foreclosure action under inforce policies shall be taken under this plan even if there is a default in payment of loan interest. However, any loan outstanding alongwith interest shall be recovered from the claim proceeds at the time of exit.
13. UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS :
U & R department will issue instructions in this regard.
14. SUICIDE CLAUSE:
This policy shall be void
a) If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk, the Corporation will not entertain any claim under this policy except to the extent of 80% of the premiums paid excluding any taxes, extra premium and rider premiums, if any, provided the policy is inforce.
b) If the Life Assured (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the premiums paid till the date of death (excluding any taxes, extra premium and rider premiums, if any,) or the surrender value, provided the policy is inforce, shall be payable. The Corporation will not entertain any other claim under this policy.
15. FORFEITURE IN CERTAIN EVENTS:
In case of fraud or misrepresentation, the policy shall be cancelled immediately by paying the surrender value, subject to the fraud or misrepresentation being established by the Corporation in accordance with Section 45 of the Insurance Act, 1938.
16. TAXES:
Taxes including Service tax, if any, shall be as per the Tax laws and the rate of tax shall be as applicable from time to time. The amount of tax as per the prevailing rates shall be payable by the Policyholder on premiums including extra premiums and rider premiums, if any. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.
The instructions regarding issues related to taxes will be issued by Finance & Accounts Department, Central office, separately, as applicable from time to time.
17. NORMAL REQUIREMENTS FOR CLAIM:
The normal documents which the claimant shall submit while lodging the claim in case of death of the Life Assured shall be claim forms, as prescribed by the Corporation, accompanied with original policy document, NEFT mandate from the claimant for direct credit of the claim amount to the bank account, proof of title, proof of death, proof of accident/disability (as mentioned in the rider circular), medical treatment prior to the death, School/College/employer's certificate, whichever is applicable, to the satisfaction of the Corporation.
If the age is not admitted under the policy, the proof of age of the Life assured shall also be submitted.
Where the policy results into a maturity claim or in case of surrender of a policy, the Life Assured shall submit the discharge form along with the original policy document, NEFT mandate from the claimant for direct credit of the claim amount to the bank account besides proof of age, if the age is not admitted earlier.
18. COOLING-OFF PERIOD:If a Policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy. The refund of premium to the Policyholder shall be subject to following deductions:
1. Stamp duty on policy;
2. Actual cost of medical examination and special reports, if any;
3. Proportionate risk premium (in respect of Base Plan and Rider, if opted for) for the period
on cover as per C.O. Circular Ref: CO/ PD/ 39 dated 31st
19. BACK-DATING INTEREST:The policies can be dated back within the same financial year. Backdating interest as applicable at the time of completion of the policy (at the rate as fixed by the Corporation from time to time) will be charged for the period in excess of one month. However, if the policy is back dated to lean months, viz. April, May, July & August, interest is to be charged for period in excess of three months. The period upto 14 days is to be ignored and 15 days or more is to be rounded to a month for this calculation.Any further instructions would be issued by Actuarial Department, Central Office, as applicable from time to time.
19. POLICY STAMPING:
Policy stamping charges will be 20 paise per thousand of Basic Sum Assured under this Plan.
20. REINSURANCE:
Normal procedure for Reinsurance shall apply as per applicable Reinsurance Treaty.
21. ASSIGNMENTS/NOMINATIONS:
It should be ensured that a nomination is made in the policy at the proposal stage as per Section 39 of Insurance Act, 1938. Further efforts should be made at the underwriting stage as well as on subsequent registration so as to eliminate the possibility of presence/involvement of moral hazard to a maximum extent. It should generally be insisted that the nominee should be spouse, children or very close relative of the Life Assured.
On a subsequent assignment as per Section 38 of Insurance Act, 1938 or change of nomination, the notice of assignment or change of nomination should be submitted for registration to the office of the Corporation, where the policy is serviced.
New Endowment Plan table no 814
1. INTRODUCTION:It has been decided to introduce LIC’s New Endowment Plan (Plan No. 814) with effect from 3rd January, 2014.
The Unique Identification Number (UIN) for LIC’s New Endowment Plan is 512N277V01. This number has to be quoted in all relevant documents furnished to the
Policyholders and other users (public, distribution channels).
This is a regular premium paying conventional WithProfits Endowment Assurance plan. The
benefits and other details of the plan are given below.
2. BENEFITS:
The benefits payable under an inforce policy are as under:
a) Benefits payable on death:
On death of the Life Assured during the policy term the Death Benefit, defined as sum of
“Sum Assured on Death”, vested Simple Reversionary bonuses and Final Additional bonus,
if any, shall be payable, where, “Sum Assured on Death” is higher of Basic Sum Assured or
10 times of annualised premium.
This Death Benefit (as defined above) shall not be less than 105% of total premiums paid as
on date of death.
The premiums mentioned above exclude taxes, extra premium and rider premiums, if any.
b) Benefits payable on maturity:
On survival to the end of the policy term, Basic Sum Assured along with vested Simple
Reversionary bonuses and Final Additional bonus, if any, shall be payable.
c) Participation in Profits:
Depending upon the Corporation’s experience the policies shall participate in the profits and
shall be eligible for simple reversionary bonus at such rate and on such terms as may be
declared by the Corporation.
Final Additional Bonus may also be declared under the policy which will be payable on the
expiry of the policy term or on earlier death provided the policy has run for certain minimum
term.
3. OPTIONAL BENEFIT:
This plan provides the following optional rider by payment of additional premium:
LIC’s Accidental Death and Disability Benefit Rider UIN ( 512B209V01): LIC’s Accidental Death and Disability Benefit Rider is available as an optional rider by payment of additional premium during the term of the policy. If there be more policies than one and if the total Accident Benefit exceeds Rs.50 lakhs, the benefits shall apply to the first Rs. 50 lakhs Sum Assured in order of date of policies issued. If this benefit is opted for, an additional amount equal to the Accident Benefit Sum Assured is payable on death due to accident, provided the rider is in force at the time of accident. In case of accidental permanent disability (within 180 days from the date of accident), an amount equal to the Accident Benefit Sum Assured will be paid in equal monthly installments spread over 10 years and future premiums for Accident Benefit Sum Assured as well as premiums for the portion of Basic Sum Assured which is equal to Accident Benefit Sum Assured under the policy, shall be waived. If the policy becomes a claim before the expiry of the said period of 10 years, the disability benefit installments which have not fallen due will be paid along with the claim amount.The premium rate for this rider is as under;
i) Rs. 1.00 per thousand Accident Benefit Sum Assured irrespective of age.
ii) Rs. 1.50 per thousand Accident Benefit Sum Assured, if the Life Assured is engaged in police duty (which excludes administrative assignments) in any police organization other than paramilitary forces and opts for this cover while engaged in police duty.
This benefit will be available only till the policy anniversary on which the age nearer birthday of the Life assured is 70 yrs or till the policy term, whichever is earlier. The premium for this benefit shall not be required to be paid from the policy anniversary at which the benefit ceases. Accidental Death and Disability Benefit Rider shall not acquire any paid-up value and the rider benefit will cease to apply, if policy is in lapsed condition.
Beyond the specific details as mentioned in this circular in respect of this rider, additional details i.e. requirements of claim, definition of disability etc, may be referred from the rider circular.
4. ELIGIBILITY CONDITIONS AND RESTRICTIONS:
For Basic Plan:
1) Minimum Age at entry for Life Assured : 8 years (completed)
2) Maximum Age at entry for Life Assured : 55 years (nearest birthday)
3) Minimum Policy Term : 12 years
4) Maximum Policy Term : 35 years
5) Minimum Basic Sum Assured : Rs. 1,00,000/
6) Maximum Basic Sum Assured : No Limit
7) Maximum Maturity Age for Life Assured : 75 years (nearest birthday)
The Basic Sum Assured shall be in multiples of Rs. 5000/.
Age at entry for the Policyholder is to be taken as age nearest birthday except for the minimum
age at entry i.e. 8 years.
For Accident and Disability Benefit Rider:
1) Minimum Entry Age : 18 years (completed)
2) Maximum Entry Age : 55 years (nearest birthday)
1. Maximum Cover ceasing Age : The cover can be opted for at any policy anniversary during the policy term but before the policy anniversary on which the age nearer birthday of the Life Assured is 70 years.
3) Minimum Accident Benefit Sum Assured : Rs. 1,00,000/
4) Maximum Accident Benefit Sum Assured: An amount equal to the Basic Sum Assured
subject to the maximum of Rs.50 lakh overall limit taking all existing policies of the Life Assured under individual as well as group policies including policies with in built accident benefit taken with Life Insurance Corporation of India and the Accident Benefit Sum Assured under the new proposal into consideration.
The Accident Benefit Sum Assured shall be in multiples of Rs. 5,000/.
5. MODE OF PREMIUM PAYMENT:
The modes of premium payment allowable are Yearly, Half Yearly, Quarterly, and Monthly
(ECS or through salary deductions).
6. PREMIUM RATES:
The tabular premium rates per thousand Basic Sum Assured are enclosed as Annexure 1.
The Class – I extra premium rates per thousand Basic Sum Assured are enclosed as
Annexure 2.
The above premium rates are exclusive of taxes.
7. GRACE PERIOD FOR PAYMENT OF PREMIUM:
A grace period of one calendar month but not less than 30 days will be allowed for payment of yearly or halfyearly or quarterly premiums and 15 days for monthly mode of premium payment.
If the death of the Life Assured occurs within the grace period but before the payment of premium then due, the policy will be treated as in inforce and the benefits are paid after deduction of the said unpaid premium and also the unpaid premium/s falling due before the next policy anniversary. If premium is not paid before the expiry of the days of grace, the Policy lapses. If the Policy has not lapsed and the claim is admitted in case of death under the policy where the mode of Payment of Premium is other than yearly, unpaid premiums, if any, falling due
before the next policy anniversary shall be deducted from the claim amount. The above grace period will also apply to rider premiums as the rider premiums are to be paid along with Basic premium.
8. REBATES:
The rebates for basic plan are as under:
Mode Rebate:
Yearly mode : 2% of tabular premium
Halfyearly mode : 1% of tabular premium
Quarterly and monthly mode : NIL
High Basic Sum Assured Rebate:
Basic Sum Assured Rebate (Rs.)
1,00,000 to 1,95,000 : Nil
2,00,000 to 4,95,000 : 2.00 ‰ Basic Sum Assured
5,00,000 and above : 3.00 ‰ Basic Sum Assured
9. PAID-UP VALUE:
If, after atleast three full years’ premium have been paid and any subsequent premiums be not duly paid, this policy shall not be wholly void, but shall subsist as a paidup policy. The Basic Sum Assured under the policy shall be reduced to such a sum, called Paidup Sum Assured, and shall bear the same ratio to the Basic Sum Assured as the number of premiums actually paid bears to the total number of premiums originally stipulated for in the policy i.e. Basic Sum Assured *(no. of premiums paid / Total number of premiums payable). Such Paid up policy shall thereafter be free from all liabilities for payment of the within mentioned premiums, but shall not be entitled to participate in future profits. However, the vested simple reversionary bonuses shall remain attached to the reduced paid up policy. This PaidUp Sum Assured along with vested Simple Reversionary bonuses accrued till the date of policy becoming paidup is payable on the expiry of policy term or on Life Assured’s prior death.
Notwithstating what is stated above, if at-least three full years’ premiums have been paid in respect of this policy, and any subsequent premium be not duly paid, in the event of the death of the Life Assured within six months from the due date of first unpaid premium, Basic Sum Assured along with vested Simple Reversionary bonuses and Final Additional bonus, if any, will be paid as if the policy had remained in full force after deduction of (a) the premium or premiums unpaid for the basic policy with interest thereon upto the date of death, on the same
terms as for revival of the Policy during such period and (b) the unpaid premiums for the basic policy falling due before the next Policy anniversary. Notwithstating what is stated above, if at least five full years' premiums have been paid in respect of this policy, and any subsequent premium be not duly paid, in the event of death of the Life Assured within 12 months from the first unpaid premium, Basic Sum Assured along with vested Simple Reversionary bonuses and Final Additional bonus, if any, will be paid as if the policy had remained in full force after deduction of (a) the premium or premiums unpaid for the basic policy with interest thereon upto the date of death, on the same terms as for revival of the Policy during such period and (b) the unpaid premium for the basic policy falling due before the next Policy anniversary. These provisions do not apply to Accidental Death and Disability Benefit rider as it does not acquire any paid up value and the rider benefit cease to apply, if policy is in lapsed condition.
10. SURRENDER VALUE: The policy can be surrendered at any time during the policy term provided atleast three full
years’ premiums have been paid. Guaranteed Surrender Value: The Guaranteed Surrender Value shall be a percentage of total premiums paid (net of taxes) excluding any extra premiums and premiums for rider, if opted for. This percentage will depend on the policy term and policy year in which the policy is surrendered.
In addition, the surrender value of vested Simple Reversionary bonuses, if any, shall also be payable, which is equal to vested bonuses multiplied by the Surrender Value factor applicable to vested bonuses.
Special Surrender Value: Corporation may however, pay Special Surrender Value as applicable as on the date of surrender, provided the same is higher than Guaranteed Surrender Value. The Special Surrender Value will be the discounted value of the sum of Paidup Sum Assured (as defined in Para 11) and the vested Simple Reversionary bonuses. The discount factors shall be the surrender value factors as provided in Table1A of Special Surrender Values booklet used for Endowment Assurance plan, and will depend on the policy term and the duration elapsed since the commencement of the policy.
11. REVIVALS:
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy may be revived during the life time of the Life Assured, but within a period of 2 consecutive years from the date of first unpaid premium and before the date of maturity, on submission of proof of continued insurability to the satisfaction of the Corporation and the payment of all the arrears of premium together with interest (compounding halfyearly) at such rate as fixed by the Corporation from time to time.
The Corporation reserves the right to accept at original terms, accept at modified terms or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated to the Life Assured.
Revival of Accidental Death and Disability Benefit rider, if opted for, will also be considered only along with revival of the Basic Policy, and not in isolation.
12. LOAN:
Loan facility is available under this plan, after payment of premiums for at least 3 full years subject to following conditions:
a) The maximum loan that can be granted as a percentage of surrender value for different policy terms.
b) The rate of interest to be charged for the loan amount would be determined from time to time by the Corporation.
c) No foreclosure action under inforce policies shall be taken under this plan even if there is a default in payment of loan interest. However, any loan outstanding alongwith interest shall be recovered from the claim proceeds at the time of exit.
13. UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS :
U & R department will issue instructions in this regard.
14. SUICIDE CLAUSE:
This policy shall be void
a) If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk, the Corporation will not entertain any claim under this policy except to the extent of 80% of the premiums paid excluding any taxes, extra premium and rider premiums, if any, provided the policy is inforce.
b) If the Life Assured (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the premiums paid till the date of death (excluding any taxes, extra premium and rider premiums, if any,) or the surrender value, provided the policy is inforce, shall be payable. The Corporation will not entertain any other claim under this policy.
15. FORFEITURE IN CERTAIN EVENTS:
In case of fraud or misrepresentation, the policy shall be cancelled immediately by paying the surrender value, subject to the fraud or misrepresentation being established by the Corporation in accordance with Section 45 of the Insurance Act, 1938.
16. TAXES:
Taxes including Service tax, if any, shall be as per the Tax laws and the rate of tax shall be as applicable from time to time. The amount of tax as per the prevailing rates shall be payable by the Policyholder on premiums including extra premiums and rider premiums, if any. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.
The instructions regarding issues related to taxes will be issued by Finance & Accounts Department, Central office, separately, as applicable from time to time.
17. NORMAL REQUIREMENTS FOR CLAIM:
The normal documents which the claimant shall submit while lodging the claim in case of death of the Life Assured shall be claim forms, as prescribed by the Corporation, accompanied with original policy document, NEFT mandate from the claimant for direct credit of the claim amount to the bank account, proof of title, proof of death, proof of accident/disability (as mentioned in the rider circular), medical treatment prior to the death, School/College/employer's certificate, whichever is applicable, to the satisfaction of the Corporation.
If the age is not admitted under the policy, the proof of age of the Life assured shall also be submitted.
Where the policy results into a maturity claim or in case of surrender of a policy, the Life Assured shall submit the discharge form along with the original policy document, NEFT mandate from the claimant for direct credit of the claim amount to the bank account besides proof of age, if the age is not admitted earlier.
18. COOLING-OFF PERIOD:If a Policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy. The refund of premium to the Policyholder shall be subject to following deductions:
1. Stamp duty on policy;
2. Actual cost of medical examination and special reports, if any;
3. Proportionate risk premium (in respect of Base Plan and Rider, if opted for) for the period
on cover as per C.O. Circular Ref: CO/ PD/ 39 dated 31st
19. BACK-DATING INTEREST:The policies can be dated back within the same financial year. Backdating interest as applicable at the time of completion of the policy (at the rate as fixed by the Corporation from time to time) will be charged for the period in excess of one month. However, if the policy is back dated to lean months, viz. April, May, July & August, interest is to be charged for period in excess of three months. The period upto 14 days is to be ignored and 15 days or more is to be rounded to a month for this calculation.Any further instructions would be issued by Actuarial Department, Central Office, as applicable from time to time.
19. POLICY STAMPING:
Policy stamping charges will be 20 paise per thousand of Basic Sum Assured under this Plan.
20. REINSURANCE:
Normal procedure for Reinsurance shall apply as per applicable Reinsurance Treaty.
21. ASSIGNMENTS/NOMINATIONS:
It should be ensured that a nomination is made in the policy at the proposal stage as per Section 39 of Insurance Act, 1938. Further efforts should be made at the underwriting stage as well as on subsequent registration so as to eliminate the possibility of presence/involvement of moral hazard to a maximum extent. It should generally be insisted that the nominee should be spouse, children or very close relative of the Life Assured.
On a subsequent assignment as per Section 38 of Insurance Act, 1938 or change of nomination, the notice of assignment or change of nomination should be submitted for registration to the office of the Corporation, where the policy is serviced.
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