1. Eligibility
Conditions and Other Restrictions :
a) Minimum
Basic Sum Assured :Rs. 2,00,000
b) Maximum
BasicSum Assured :No Limit
(The
Basic Sum Assured shall be in multiples of Rs. 10,000/-)
c) Policy
Term/Premium Paying Term : (16/10), (21/15)(25/16)years
d) Minimum
Age at entry :[8] years (completed)
e) Maximum
Age at entry:[59] years (nearest birthday) for Policy Term 16 years
[54]
years (nearest birthday) for Policy Term 21 years &
[50]
years (nearest birthday) for Policy Term 25 years
f) Maximum
Maturity Age : [75] years (nearest birthday)
2. Payment
of Premiums:
Premiums
can be paid regularly at yearly, half-yearly, quarterly or
However,
a grace period of one month but not less than 30 days
3. Sample
Premium Rates:
Following
are some of the sample annual tabular premium rates (in Rs.) (exclusive
of service tax) per Rs. 1000/- Basic Sum
Assured:
Age
(in
years)
|
Policy
Term/Premium Paying Term (in Years)
|
16
(10)
|
21
(15)
|
25
(16)
|
20
|
85.20
|
54.50
|
45.95
|
30
|
85.50
|
54.95
|
46.60
|
40
|
86.80
|
56.80
|
48.90
|
50
|
90.95
|
61.85
|
54.80
|
4. Mode
and High S.A. Rebates:
Mode
Rebate:
Yearly mode 2% of Tabular Premium
Half-yearly mode 1% of Tabular premium
Quarterly, Monthly & SSS - NIL
High
Sum Assured Rebate:
Basic
Sum Assured (B.S.A)Rebate (Rs.)
2,00,000 to 4,90,000 Nil
5,00,000 to 9,90,000 1.25%o B.S.A.
10,00,000 to 14,90,000 1.50%o B.S.A.
15,00,000 to and above 1.75%o B.S.A.
5. Revival:
If
premiums are not paid within the grace period then the policy will lapse.
A lapsed policy can be revived within a period of 2 consecutive years
from the date of first unpaid premium by paying all the arrears of
premium together with interest (compounding half-yearly) at
such rate as fixed by the Corporation at the time of the
payment, subject to submission of satisfactory evidence of continued
insurability.
The
Corporation reserves the right to accept at original terms, accept with
modified terms or decline the revival of a discontinued policy. The
revival of a discontinued policy shall take effect only after the same is
approved by the Corporation and is specifically communicated in writing
to the Life Assured.
Revival
of rider(s), if opted for, will be considered along with revival of the
Base Policy, and not in isolation.
6. Paid-up
Value:
If
after atleast three full years' premiums have been paid and any
subsequent premiums be not duly paid, this policy shall not be wholly
void, but shall subsist as a paid-up policy.
The
Sum Assured on Death under a paid-up policy shall be reduced to such a
sum called 'Death Paid-up Sum Assured' and shall be equal
to [Sum Assured on Death * (number of premiums paid / number of
premiums payable during the premium paying term)].
The
Sum Assured on Maturity under a paid-up policy shall be reduced to such a
sum called 'Maturity Paid-up Sum Assured' and shall be equal
to [Sum Assured on Maturity * (number of premiums paid / number
of premiums payable during the premium paying term)].
If
a policy continues as a paid up policy the same shall not be entitled
Rider(s)
do not acquire any paid-up value and the rider benefits cease to apply,
if policy is in lapsed condition.
7. Surrender
Value:
The
policy can be surrendered provided atleast three full years' premiums
have been paid. The Guaranteed Surrender value shall be percentage
of total premiums paid. This percentage will depend on the policy term
and policy year in which the policy is surrendered and are specified as
below:
Premiums
referred above shall not include any taxes, extra amount if charged under
the policy due to underwriting decision and rider premium(s), if any.
In
addition, the surrender value of any 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.
These factors will depend on the policy term and policy year in which the
policy is surrendered and are specified as below:
Corporation
may, however, pay Special Surrender value, if it is more favorable to the
Policyholder.
8. Policy
Loan:
Loan
can be availed under the policy provided the policy has acquired a
surrender value and subject to the terms and conditions that the
Corporation may specify from time to time.
9. Taxes:
Statutory
Taxes, if any, imposed on such insurance plans by the Govt. of India or
any other constitutional tax Authority of India
shall be as per the Tax laws and the rate of tax as applicable from time
to time.
The
amount of Service Tax payable as per the prevailing rates shall be
payable by the policyholder on premiums payable
under the policy, which shall be collected separately over and above in
addition to the premiums payable by the policyholder. The amount of tax
paid shall not be considered for the calculation of benefits payable
under the plan.
10. Free-look
period:
If
the Policyholder is not satisfied with the "Terms and
Conditions" of the policy, the policy may be returned to the
Corporation within 15 days from the date of receipt of the policy bond
stating the reasons of objections. On receipt of the same the Corporation
shall cancel the policy and return the amount of premium deposited after
deducting the proportionate risk premium (for base plan and rider(s), if
any) for the period on cover, expenses incurred on medical examination,
special reports, if any and stamp duty.
11. Exclusion:
Suicide: - This policy shall be void
i. 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 except for 80% of the premiums paid,
provided the policy is inforce.
ii. 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 or the surrender value, shall be
payable. The Corporation will not entertain any other claim. This clause
shall not be applicable for a policy lapsed without acquiring paid-up
value and nothing shall be payable under such policies.
Premiums
referred above shall not include any taxes, extra amount if charged under
the policy due to underwriting decision and any rider premium(s) other
than Term Assurance Rider.
BENEFIT ILLUSTRATION:
"Some
benefits are guaranteed and some benefits are variable with returns based
on the future performance of your Insurer carrying on life insurance
business.If your policy offers guaranteed returns then these will be
clearly marked "guaranteed" in the illustration table on this
page.If your policy offers variable returns then the illustrations on
this page will show two different rates of assumed future investment
returns.These assumed rates of return are not guaranteed and they are not
the upper or lower limits of what you might get back, as the value of
your policy is dependent on a number of factors including future
investment performance."
Notes:
i) The
non-guaranteed benefits (1) and (2) in above illustration are calculated
so that they are consistent with the Projected Investment Rate of Return
assumption of 4% p.a. (Scenario 1) and 8% p.a. (Scenario 2)
respectively.In other words, in preparing this benefit illustration, it
is assumed that the Projected Investment Rate of Return that LICI will be
able to earn throughout the term of the policy will be
4% p.a. or 8% p.a., as the case may be.The Projected Investment Rate of
Return is not guaranteed.
ii) The
main objective of the illustration is that the client is able to
appreciate the features of the product and the flow of benefits in
different circumstances with some level of quantification.
SECTION 45 OF THE INSURANCE
ACT, 1938:
The
provision of Section 45 of the Insurance Act, 1938 shall be applicable as
amended from time to time. The simplified version of this provision is as
under:
Provisions
regarding policy not being called into question in terms of Section 45 of
the Insurance Act, 1938 as amended by Insurance Laws (Amendment) Act,
2015 are as follows:
1. No Policy of Life Insurance shall be called in
question on any ground whatsoever after expiry of 3 yrs from
a.
the date of issuance of policy or
b.
the date of commencement of risk or
c.
the date of revival of policy or
d.
the date of rider to the policy
whichever
is later.
2. On the ground of fraud, a policy of Life Insurance
may be called in question within 3 years from
a.
the date of issuance of policy or
b.
the date of commencement of risk or
c.
the date of revival of policy or
d.
the date of rider to the policy
whichever
is later.
For
this, the insurer should communicate in writing to the insured or legal
representative or nominee or assignees of insured, as applicable,
mentioning the ground and materials on which such decision is based.
3. Fraud means any of the following acts committed by
insured or by his agent, with the intent to deceive the insurer or to
induce the insurer to issue a life insurance policy:
a.
The suggestion, as a fact of that which is not true and which the insured
does not believe to be true;
b.
The active concealment of a fact by the insured having knowledge or
belief of the fact;
c.
Any other act fitted to deceive; and
d.
Any such act or omission as the law specifically declares to be
fraudulent.
4. Mere silence is not fraud unless, depending on
circumstances of the case, it is the duty of the insured or his agent
keeping silence to speak or silence is in itself equivalent to speak.
5. No Insurer shall repudiate a life insurance Policy
on the ground of Fraud, if the Insured /beneficiary can prove that the
misstatement was true to the best of his knowledge and there was no
deliberate intention to suppress the fact or that such mis-statement of
or suppression of material fact are within the knowledge of the insurer.
Onus of disproving is upon the policyholder, if alive, or beneficiaries.
6. Life insurance Policy can be called in question
within 3 years on the ground that any statement of or suppression of a
fact material to expectancy of life of the insured was incorrectly made
in the proposal or other document basis which policy was issued or
revived or rider issued. For this, the insurer should communicate in
writing to the insured or legal representative or nominee or assignees of
insured, as applicable, mentioning the ground and materials on which
decision to repudiate the policy of life insurance is based.
7. In case repudiation is on ground of mis-statement
and not on fraud, the premium collected on policy till the date of
repudiation shall be paid to the insured or legal representative or
nominee or assignees of insured, within a period of 90 days from the date
of repudiation.
8. Fact shall not be considered material unless it has
a direct bearing on the risk undertaken by the insurer. The onus is on
insurer to show that if the insurer had been aware of the said fact, no
life insurance policy would have been issued to the insured.
9. The insurer can call for proof of age at any time
if he is entitled to do so and no policy shall be deemed to be called in
question merely because the terms of the policy are adjusted on
subsequent proof of age of life insured. So, this Section will not be
applicable for questioning age or adjustment based on proof of age
submitted subsequently.
[Disclaimer: This is not a
comprehensive list of Section 45 of the Insurance Act, 1938 as amended by
Insurance Laws (Amendment) Act, 2015 and only a simplified version
prepared for general information. Policy Holders are advised to refer to
the Insurance Laws (Amendment) Act, 2015, for complete and accurate
details.]
PROHIBITION OF REBATES SECTION 41 OF THE
INSURANCE ACT, 1938 AS AMENDED BY INSURANCE LAWS (AMENDMENT) ACT, 2015:
1) No person shall allow or
offer to allow, either directly or indirectly, as an inducement to any
person to take out or renew or continue an insurance in respect of any
kind of risk relating to lives or property in India, any rebate of the
whole or part of the commission payable or any rebate of the premium
shown on the policy, nor shall any person taking out or renewing or
continuing a policy accept any rebate, except such rebate as may be
allowed in accordance with the published prospectuses or tables of the
insurer:provided that acceptance by an insurance agent of commission in
connection with a policy of life insurance taken out by himself on his
own life shall not be deemed to be acceptance of a rebate of premium
within the meaning of this sub-section if at the time of such acceptance
the insurance agent satisfies the prescribed conditions establishing that
he is a bona fide insurance agent employed by the insurer.
2) Any person making default in
complying with the provisions of this section shall be liable for a
penalty which may extend to ten lakh rupees.
Note: "Conditions apply" for which please refer
to the Policy document or contact our nearest Branch Office.
BEWARE
OF SPURIOUS PHONE CALLS AND FICTITIOUS / FRAUDULENT OFFERS
IRDAI
clarifies to public that
IRDAI or its officials do
not involve in activities
like sale of any kind of insurance or financial products nor invest
premiums.
IRDAI does not announce any
bonus.
Public
receiving such phone calls are requested to lodge a police complaint
along with details of phone call, number.
|
Registered
Office:
Life
Insurance Corporation of India
Central
Office, Yogakshema,
Jeevan
Bima Marg,
Mumbai
- 400021.
Registration
Number: 512 to participate in future profits. However, the vested simple
reversionary bonuses, if any, shall remain attached to the reduced paid
up policy.
will
be allowed for payment of yearly, half-yearly, quarterly mode and 15 days
for monthly mode of premium payment. monthly mode (through ECS only) or
through SSS mode during the Premium Paying Term of the policy.
|
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