Amulya Jeevan – I Plan (Without Profits) (Plan No. 190)

Introduction of LIC’s Amulya Jeevan – I Plan (Without Profits) (Plan No. 190)

It has been decided to withdraw LIC’s Amulya Jeevan (Table 177) with effect from 18th February, 2008 and introduce LIC’s Amulya Jeevan - I (Table No.190) with effect from 18th February, 2008

The details of the Plan are given as under:

1. BENEFITS
On Death during the Term of the Policy : Sum Assured
On Maturity : Nil

2. ELIGIBILITY CONDITIONS AND RESTRICTIONS:
(a) Minimum age at entry : 18 years (completed)
(b) Maximum age at entry : 60 years (nearest birthday)
(c) Maximum age at maturity : 70 years (nearest birthday)
(d) Minimum Policy Term : 5 years
(e) Maximum Policy term : 35 years
(f) Minimum Sum Assured : Rs.25,00,000/-
(g) Maximum Sum Assured : No Upper Limit
(Policies will be issued in multiples of Rs.100,000/- for Sums Assured more than the minimum Sum Assured)
(h) Mode of premium payment : Yearly, Half-yearly & Single Premium

3. REBATES
a) Mode Rebate
There is no mode rebate for yearly mode of premium payment under this plan. In case of half-yearly mode, there is an additional premium of 2% of the tabular annual premium.


b) Large Sum Assured Rebates
A rebate of Rs. 0.50 %o Sum Assured will be allowed under Single Premium policies with Sum Assured of Rs. One Crore and above. There will be no rebate for large Sum Assured in case of Regular Premium.

c) CEIS Rebate
For half-yearly and yearly mode, the rebate for eligible employees of the Corporation shall be @ 5% of the Tabular Premium where term is less than 15 years and @ 10% of the Tabular Premium where term is 15 years or more, provided policy is not taken through any Agent/ Corporate Agent/ Broker.

In case of a single premium policy this rebate shall be 2% of the tabular premium.

4. COMMISSION FOR AGENTS / CORPORATE AGENTS/ BROKERS AND D. O. CREDIT :
Commission rates (as percentage of premium) payable to Agents and Corporate Agents during the term are as under :

a) Agents and Corporate Agents
1st Year 2nd & 3rd Year Subsequent Years
Single Premium 2% - -
Regular Premium
Policy Term
5 to 9 years 10% 5% 5%
10 to 14 years 20% 7.50% 5%
15 years and above 25% 7.50% 5%

Bonus Commission: 40% of 1st Year Commission (payable only in case of Regular premiums)

b) Brokers
1st Year Subsequent Years
Single Premium 2% -
Regular Premium
Policy Term
5 to 9 years 15% 5%
10 years and above 30% 5%

No Bonus Commission shall be paid to the brokers.

c) Development Officer’s Credit:
Single Premium : 5%
Regular Premium
Policy Term
5 to 9 years : 30%
10 to 14 years : 60%
15 years and above : 100%

5. UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS
a) Standard age proof will have to be submitted along with the Proposal Form.

b) Proposals will be considered on the basis of Medical Reports and Special reports (if any). Full Medical Reports (FMR) will be required to be done by DMR / Addl. DMR or by TPA. FMR from Medical Examiners with enhanced powers will not be accepted.

c) Cost of medical examination (including Special reports, if any) will be borne by the Corporation as per rules.

d) Sum under consideration (SUC) will be calculated as per the existing rules and for the purpose of calculating SUC the sum assured under this plan is to be considered.

e) This Plan will be allowed to standard and substandard lives.

f) In case of female lives, this plan will be restricted to lives falling under Female Category-I and II.

g) This Plan can be allowed to persons engaged in hazardous occupations by charging appropriate occupation extra or with Clause 86.

h) This plan can be allowed to physically handicapped persons as per the existing rules in this regard.

6. GRACE PERIOD FOR NON-FORFEITURE PROVISIONS (For policies with Regular Premiums)
A grace period of 15 days will be allowed for payment of yearly or half-yearly premiums. If death occurs within this period and before the payment of the premium then due, the policy shall be valid and the Sum Assured shall be payable after deduction of the said premium as also unpaid premiums, if any, falling due before the next policy anniversary of the policy. If premiums are not paid within the grace period, the policy will lapse.

7. PAID UP AND SURRENDER VALUE
(a) The policy will not acquire any paid-up value.
(b) No Surrender Value will be available under this plan.

8. REVIVAL (For policies with Regular Premium)
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 fixed by the Corporation from time to time and compounding half-yearly. The Corporation reserves the right to accept at original terms, accept with modified terms or decline the revival of a discontinued policy.

Revival of lapsed policies can be considered with the following requirements:

Period from First Unpaid Premium Requirements for revival
16 days to 60 days Arrears of premiums with interest thereon
61 days and above Arrears of premiums with interest thereon subject to submission of proof of continued insurability to the satisfaction of the Corporation as per underwriting rules prevailing at the time of revival.

The cost of the medical reports, including special reports, if any, required for the purposes of revival of the policy, shall be borne by the Life Assured.

The revival of a discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated to the Proposer/ Life Assured.

9. LOAN
No loan will be granted under this plan.

10. SUICIDE CLAUSE:
This Policy shall be void if the Life Assured commits suicide (whether sane or insane at that time) at any time on or after the date on which the risk under the Policy has commenced but before the expiry of one year from the date of commencement of risk under this Policy and the Corporation will not entertain any claim by virtue of this Policy except to the extent of a third party’s bonafide beneficial interest acquired in the Policy for valuable consideration of which notice has been given in writing to the branch where the Policy is being presently serviced (where the policy records are kept), at least one calendar month prior to death.

11. 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 of life assured is not admitted under the policy, the proof of age of the Life Assured shall also be submitted.

12. 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 from the date of receipt of the policy.

13. BACK-DATING
The policy can be dated back within the financial year, as usual. No dating back interest shall be charged. However, policies issued in this year cannot be back-dated before the date of introduction.

14. POLICY STAMPING:
Policy stamping charges will be 20 paise per thousand of Death Benefit Sum Assured.

15. REINSURANCE
The reinsurance rules will be as applicable to term assurance plans.

16. ASSIGNMENTS / NOMINATIONS:
It should be ensured that a nomination is made in the policy at the proposal stage necessarily. However, on a subsequent assignment 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. In registering an assignment or nomination the Corporation does not accept any responsibility or express any opinion as to its validity or legal effect.

17. PREMIUM RATES
Tabular Single and Annual premium rates under the Plan are given in Annexure A and B respectively.

18. EXTRA PREMIUM RATES
The Class I extra Single and Annual premium rates to be charged in case of substandard lives are given in Annexure C and D respectively. The extra premium for higher EMR will be multiples of these class I extra rates – the multiples being the same as applicable under Endowment Plan.

19. PROPOSAL FORM
Form No.300 or 340 shall be used for proposal under this plan.