INTRODUCTION OF LIC’S JEEVAN PRAMUKH (PLAN No. 167)
It has been decided to introduce a new plan - LIC’s Jeevan Pramukh (Plan No.167) w.e.f.1st November, 2004. The details of the plan are as under:
LIC’s Jeevan Pramukh Plan is a with-profits plan under which the benefit is payable either on survival of the Life Assured to the maturity date or on his / her death during the term of the policy, if earlier.
(1) Death Benefit: On death of the Life Assured during the term of the policy an amount equal to the Sum Assured along with accrued Guaranteed Additions and vested Simple Reversionary Bonuses and Terminal Bonus, if any, shall be payable provided the policy is in full force.
(2) Maturity Benefit: Sum Assured along with accrued Guaranteed Additions and vested Simple Reversionary Bonuses and Terminal Bonus, if any, shall be payable to the Policyholder on surviving the term of the policy provided the policy is in full force for full Sum Assured.
3. Guaranteed Additions
Provided the policy is in full force, Guaranteed Additions @ Rs. 50/- per thousand Sum Assured will be added to Sum Assured at the end of each policy year, for the first five years.
4. Participation in profits
The policy shall participate in profits of the “With Profit Assurance Policies” from the 6th policy year onwards and at such rates as may be declared by the Corporation provided all the premiums have been paid.
Terminal Bonuses, if any, may also be declared under the policy depending upon the experience of the Corporation and shall be payable at maturity or earlier death of the Life Assured.
Loan is permissible subject to the usual terms and conditions. The rate of interest on loan shall be charged at the rate of 10.5% p.a. payable half-yearly. The Corporation may revise the rate of interest in future.
Mode rebate / extra :
Yearly … 2% of tabular premium
Half-Yearly … 1% of tabular premium
Quarterly … Nil
Monthly … 5% extra of tabular premium
Large Sum Assured Rebate:
Up to and including Rs.50 lakhs: Nil
Above Rs.50 lakhs: Rs. 0.50 per thousand Sum Assured
CEIS Rebate: 3% of tabular premium.
7. Modes of Premium Payment
The premium may be paid regularly during the premium paying term with modes of premium payment of Yearly, Half Yearly, Quarterly or Monthly.
8. Premium Paying Term
Premium Paying Term under this plan are 3, 4 or 5 years.
9. Eligibility Conditions and Restrictions
(a) Minimum Age at entry - 18 years completed
(b) Maximum Age at entry - 65 years (age nearest birthday)
(c) Maximum Age At Maturity - 75 years (age nearest birthday)
(d) Policy Term - 5, 10, 15, 20 or 25 years
(e) Minimum Sum Assured - Rs.10 lakhs.
(f) Maximum Sum Assured - No limit
The Sum Assured shall be in multiples of Rs.1,00,000
10. Premium rates
(A) Tabular Premium Rates – as per Annexure I
(B) Class I Extra Premium Rates – as per Annexure II. The extra premium for higher EMR will be multiples of these extra premiums, the multiples will be the same as under Endowment plan.
[ENCL : ANNEXURE I-II]
11. Commission for Agents / Corporate Agents / Brokers & D.O. Credit
Commission rates (as percentage of premium) payable to Agents and Corporate Agents during the premium paying term are as under:
Premium Paying Term 1st Year Renewal
3 and 4 years 5% 2.25%
5 years 10% 5%
Bonus Commission: 40% of 1st year commission.
Commission rates (as percentage of premium) payable to Brokers during the premium paying term are as under:
Premium Paying Term 1st Year Renewal
3 and 4 years 5% 2.25%
5 years 10% 5%
Development Officer's Credit on Incentives:
Premium Paying Term As % of FYr. Premium
3 and 4 years 5%
5 years 30%
12. Underwriting, Age proof and Medical requirements
All underwriting rules will be the same as that applicable to Endowment Assurance plan. However, only standard age proof is acceptable.
13. Paid-up Value
If, after more than one full years’ premiums have been paid in respect of the Policy, any subsequent premium be not duly paid, the Policy shall not be wholly void but the Sum Assured shall be reduced to such a sum which shall bear the same ratio to the full Sum Assured as the number of premiums actually paid shall bear to the total number of premiums originally stipulated for in the Policy. The policy so reduced shall thereafter be free from all liabilities for payment of the within-mentioned premium and shall not be entitled to the future Guaranteed Additions and bonuses. However the existing accrued Guaranteed Additions and vested Simple Reversionary Bonuses, if any, will remain attached to the reduced paid-up policy.
The paid up value along with accrued Guaranteed Additions and vested Simple Reversionary Bonuses, if any, shall be payable on maturity or earlier death of the Life Assured.
14. Surrender Value
The policy can be surrendered for cash after more than one year’s premiums have been paid.
The Guaranteed Surrender Value allowable under this plan will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and extra premiums, if any.
The cash value of any accrued Guaranteed Additions and vested Simple Reversionary Bonuses, if any, will also be payable after completion of 3 years.
Special Surrender Value will be available after the policy has completed 3 years from the date of commencement. The cash value of any accrued Guaranteed Additions and vested Simple Reversionary Bonuses, if any, will also be payable after completion of 3 years.
15. Grace period for payment of premium
A grace period of one month but not less than 30 days will be allowed for payment of yearly, half-yearly or quarterly premiums and 15 days for monthly premiums.
16. Revivals or reinstatements of lapsed policy
If the policy has lapsed, it may be revived during the life time of the Life Assured, but within a period of 5 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 at such rate as may be prevailing at the time of the payment.
Where a policy under this plan has been taken by an employee under Keyman Insurance and such Keyman leaves the services and joins another employer, the policy may be transferred in favour of the new employer subject to fulfillment of the following conditions:
a) The old employer requests for the transfer of the policy and is prepared to execute an assignment in favour of the new employer
b) The Life Assured employee is a keyman of the new employer, and
c) The policy is in full force
The terms of transfer may be decided by both the employers mutually. Needless to add that such transfer will be subject to the approval from LIC.
18. Normal requirements for claim
The normal documents which the claimant shall submit while lodging the claim in case of death of the policyholder shall be the claim forms, as prescribed by the Corporation, accompanied with original policy document, proof of title, proof of death, proof of accident/disability, medical treatment prior to death, 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 the policy, the Life Assured shall submit the discharge form along with the original policy document. The Life Assured shall also submit proof of age, if the age is not admitted earlier.
19. Claim concession
If premiums have been paid for at least first three years and death occurs within 6 months from the due date of the first unpaid premium, then the claim may become payable.
20. Cooling-off period:
If a policy holder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days.
21. Back-dating interest
The policies can be dated back within the financial year, as usual. Back- dating interest will be charged at the rate of 10.5% 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.
22. Policy stamping
Policy stamping charges will be 20 paise per thousand Sum Assured.
Normal procedure for reinsurance will apply.
24. 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.
25. Proposal form
Form No.300/ 340 shall be used for this plan.
JEEVAN PRAMUKH (PLAN No. 167)
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