INTRODUCTION OF BIMA NIVESH 2005 - PLAN OF ASSURANCE WITH COMPOUND RATE OF GUARANTEED ADDITIONS AND LOYALTY ADDITIONS (Plan No. 171)
It has been decided to introduce Bima Nivesh 2005 plan (Plan No.171) w.e.f. 21/03/2005. The plan will replace Bima Nivesh 2004, which shall not be available for sale after 20.03.2005. The following are the salient features of the plan :
(a) Terms and premiums: This plan is available for terms 5 and 10 years only. The Single Premium per thousand Sum Assured is Rs.995/- for term 5 years and Rs.976/- for term 10 years.
(b) Maturity Benefit: On survival of the Life Assured to the end of the term the Sum Assured under the Basic Plan along with accrued Guaranteed Additions and Loyalty Addition, if any, will be payable.
(c) Guaranteed Additions: Guaranteed additions will be at the compound rate of Rs.50/- and Rs.55/- per thousand Sum Assured under the Basic Plan per annum for terms 5 and 10 years respectively and shall accrue at the end of each completed policy year.
(d) Death Benefit: On death before the date of maturity, Sum Assured along with accrued Guaranteed Additions will be payable. If Term Assurance Rider has been opted for, an additional amount equal to the Term Assurance Rider Sum Assured will be payable along with the Death Benefit under the Basic Plan.
(e) Loyalty Addition: Depending upon the Corporation's experience with regard to mortality, interest and expenses and based on term of the policy, Loyalty addition, if any, will be paid on survival of the Life Assured to the Date of Maturity.
(f) High Premium Rebate:
Single Premium Rebate
Upto and including Rs.50,000 - NIL
Rs.50,001 to Rs.1,00,000 - 1% of Premium under the Basic Plan in excess of Rs. 50,000
Above Rs.1,00,000 - Rs. 500 plus 1.5% of Premium under the Basic Plan in excess of Rs. 1,00,000
This rebate is applicable to the basic plan only. It does not apply to the Term Assurance Rider Benefit.
(g) Rebate for Corporation Employees:
The rebate for eligible employees of the Corporation will be 2% of the tabular Single Premium.
(h) Features of this plan:
a. Minimum age at entry - 13 years completed
b. Maximum age at entry - 70 years
c. Maximum age at maturity - 75 years
d. Minimum Sum Assured - Rs.25,000/-
e. Maximum Sum Assured - No limit
The Sum Assured under the Basic Plan should be in multiples of Rs. 5,000.
(i) Term Assurance Rider:
Term Assurance Rider benefit with Single Premium will be available at the option of the proposer. The features and eligibility conditions applicable to Term Assurance Rider are given as under:
a. Minimum age at entry - 18 years completed
b. Maximum age at entry - 50 years
c. Maximum age at maturity - 60 years
d. Minimum Sum Assured - Rs.1,00,000/-
e. Maximum Sum Assured The Sum Assured under the Basic Plan, subject to an overall limit of Rs.25,00,000/- on Sum Assured under Term Assurance Riders under all policies of the Life Assured with the Corporation taken together.
The Term Assurance Rider Sum Assured should be in multiples of Rs. 5,000.
(j) Commission to Agents / Corporate Agents / Brokers & D.O. Credit :
The Agents, Corporate Agents and Brokers will be eligible for commission @ 2% of the Single Premium. No Bonus Commission will be payable.
Credit to Development Officers will be @ 5% of the Single Premium.
(k) Underwriting:
When Term Assurance Rider is not opted for :-
Proposals under Bima Nivesh 2005 plan will be considered independently without clubbing the Sum Under Consideration with previously accepted proposals.
No special reports will be called for irrespective of the sum under consideration.
Proposal under Bima Nivesh 2005 will be considered on the basis of satisfactory Declaration of Good Health (DGH). If DGH is not satisfactory, the proposal should be referred to CUS with FMR.
Age Proof – Standard or Non-standard age-proofs are acceptable.
When Term Assurance Rider is opted for:- The usual underwriting rules for clubbing, calling general and special reports etc. will apply for the Term Assurance Rider Sum Assured. The Term Assurance Rider Sum Assured will be the Sum Under Consideration.
(l) Settlement of Claims:
The procedure for settlement of early death claims under the above plan is prescribed below :-
(1) Claim investigation will have to be called for all death claims arising within two years from the date of commencement of risk. If claim is found to be genuine, the claim will be settled in full.
(2) Where the claim is not found to be genuine or there is any suppression/ non-disclosure of material facts, the claim will be repudiated. However, after repudiation of the claim, the same may be settled on ex-gratia basis as under :
(a) A speaking order is to be prepared by the Sr.Divisional Manager repudiating the death claim as per policy conditions pertaining to “Forfeiture in Certain Events”. The order should also contain the decision to pay ex-gratia.
(b) Where death occurs within one year from the date of commencement, 90% of premium paid will be returned.
(c) Where death occurs after one year but before two years, 95% of premium paid will be returned.
(d) Where death occurs after two years, 100% of the premium paid will be returned.
(e) Term Assurance Rider Sum Assured, if opted for, will not be paid.
While sending discharge form for the Ex-gratia amount, a letter is to be sent under the signature of Sr.Divisional Manager to the claimant. A copy of the draft of such letter in form no. 5158 A which was attached to our Circular Ref : Actl/1897/4 dated August 26, 2003, is to be sent to the claimant.
(3) All claim forms like Claim Form A, B, B 1, C & E will be required to be filled depending on the circumstances leading to the death of the Life Assured.
(4) All claims up to Sum Assured of Rs. 2 lac can be admitted by the Sr.Divisional Manager at the Divisional Office. Claims above Sum Assured of Rs. 2 lac can be admitted by the Zonal Office depending on the Financial powers vested as per “Financial Powers- Standing Order 1960 (as amended up to 28th February, 2001).
(m) Guaranteed Surrender Value:
Guaranteed Surrender Value is payable after a policy has run for at least one year. The Guaranteed Surrendered Value allowable is equal to 90% of the Single premium paid excluding all extra premiums and the premium for the Term Assurance Rider for policy with 5 years term and 80% of the Single premium paid excluding all extra premiums and the premium for the Term Assurance Rider for policy with 10 years term.
Surrender value will not be available on Term Assurance Rider premium.
(n) Special Surrender Value:
Special Surrender Value (SSV) is payable at the following rate after the policy has run at least for one year:-
TERM : 5 YEARS
TERM : 10 YEARS
Completed duration in years
SSV as % of (SA + GAs)
Completed duration in years
SSV as % of (SA + GAs)
Completed duration in years
SSV as % of (SA + GAs)
1.00
90.500%
1.00
81.000%
5.50
90.000%
1.25
91.000%
1.25
81.500%
5.75
90.500%
1.50
91.500%
1.50
82.000%
6.00
91.000%
1.75
92.000%
1.75
82.500%
6.25
91.500%
2.00
92.500%
2.00
83.000%
6.50
92.000%
2.25
93.125%
2.25
83.500%
6.75
92.500%
2.50
93.750%
2.50
84.000%
7.00
93.000%
2.75
94.375%
2.75
84.500%
7.25
93.500%
3.00
95.000%
3.00
85.000%
7.50
94.000%
3.25
95.625%
3.25
85.500%
7.75
94.500%
3.50
96.250%
3.50
86.000%
8.00
95.000%
3.75
96.875%
3.75
86.500%
8.25
95.625%
4.00
97.500%
4.00
87.000%
8.50
96.250%
4.25
98.125%
4.25
87.500%
8.75
96.875%
4.50
98.750%
4.50
88.000%
9.00
97.500%
4.75
99.375%
4.75
88.500%
9.25
98.125%
5.00
89.000%
9.50
98.750%
5.25
89.500%
9.75
99.375%
Special Surrender Value will be paid based on completed quarter years.
(o) Back-dating:
The policies can be dated back within the financial year, as usual. Back- dating interest will be charged at the rate of 9% p.a. for dating back in excess of one month. This rate is subject to revision. The interest shall be charged even where the policy is back dated to a lean month.
(p) Loans:
Provided the policy has run for at least one year, policy loans may be granted under this plan. The rate of interest to be charged on the loan will be determined from time to time by the Corporation. The current rate of interest will be 10.5% p.a. payable half-yearly.
(q) Policy stamping:
Policy stamping charges will be 20 paise per thousand Sum Assured under the Basic Plan. For Term Assurance Rider Sum Assured, additional policy stamping of 20 paise per thousand Term Assurance Rider Sum Assured will be made.
(r) Assignments/ Nominations:
Notice of assignment or change of nomination should be submitted for registration to the office of the Corporation, where this policy is serviced. In registering an assignment or nomination the Corporation does not accept any responsibility or express any opinion as to its validity or legal effect.
(s) Proposal form and Policy document formats:Proposal Form 300 or 340 as the case may be, shall be used for this plan.
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