BIMA NIVESH - PLAN OF ASSURANCE WITH COMPOUND RATE OF GUARANTEED

BIMA NIVESH 2004 - PLAN OF ASSURANCE WITH COMPOUND RATE OF GUARANTEED ADDITIONS AND LOYALTY ADDITIONS (Table No. 166)

It has been decided to introduce Bima Nivesh 2004 plan (Table No. 166) with effect from 17th May, 2004. The following are the salient features of the plan:

(a) Terms and premiums: This plan is available for terms 5 and 10 years. The Single Premium per thousand Sum Assured is Rs.995/- for term 5 years and Rs.976/- for 10 years.

(b) Maturity Benefit: On survival of the life assured to the end of the term the Sum Assured along with Guaranteed Additions will be payable. Loyalty addition, if any, will also be paid.

(c) Guaranteed Additions: Guaranteed additions will be at the compound rate of Rs.40/- and Rs.45/- per thousand Sum Assured per annum for terms 5 and 10 years respectively.

(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 taken, the Term Assurance Rider Sum Assured is also payable.

(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 at maturity.


(f) High Premium Rebate:
1% of the tabular premium in excess of Rs 50,000 upto 1,00,000.
1.5% of the tabular premium 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, if opted for.

(g) Rebate for Corporation Employees:
The rebate for eligible employees of the Corporation will be 2% of the tabular Single Premium.

(h) Restrictions under 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
f. Multiples of Sum Assured - Rs.5,000/-

(i) Term Assurance Rider:
Term Assurance Rider benefit with single premium will be available at the option of the proposer. The restrictions 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 main plan, subject to an overall limit of Rs.25,00,000/- on Sum Assured under Term Assurance Riders under all policies taken by a policyholder.
f. Multiples of Sum Assured - Rs.25,000/-

(j) Commission to Agents and Credit to Development Officers:
The Agents will be eligible for commission of 2% of the Single Premium. Credit to Development Officers will be of 5% of the Single Premium.

(k) Proposal form and policy document formats:
The proposal form for Bima Nivesh 2002 plan can be used for this plan. A format of policy document is enclosed herewith.

(l) Underwriting:
When Term Assurance Rider is not opted for :-
Proposals under Bima Nivesh 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 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 rider Sum Assured. The term rider Sum Assured will be the Sum Under Consideration.

(m) Settlement of Claims:
The rules applying to Bima Nivesh 2002 plan as given in our circulars Ref: Actl/1897/4 dated 26th August 2003 and Ref: Actl/1898/4 dated 4th September 2003 will apply for this plan also.

(n) 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 premium and the premium for the Term Assurance Rider for policy with 5 year term and 80% of the Single premium paid excluding all extra premiums and the premium for the Term Assurance Rider for policy with 10 year term.

(o) 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
91%
1
81%
5.5
90%
1.5
92%
1.5
82%
6
91%
2
93%
2
83%
6.5
92%
2.5
94%
2.5
84%
7
93%
3
95.5%
3
85%
7.5
94%
3.5
96.5%
3.5
86%
8
95.5%
4
97.5%
4
87%
8.5
96.5%
4.5
98.5%
4.5
88%
9
97.5%


5
89%
9.5
98.5%

Special Surrender Value for intervening durations will be paid based on completed years or completed half-years as the case may be.

(p) Back-dating:
A policy under this plan can be back-dated within the same financial year on payment of interest at the rate of 9% p.a. Interest will be calculated for the exact duration for which the policy is backdated. No waiver of interest for back-dating will be allowed. No discounting facility is available under this plan.

(q) Loans:
Policy loans are available under this plan. The rate of interest that will be charged on the loans will be determined from time to time by the Corporation. The current rate of interest will be 10.5% pa payable half-yearly.