FUTURE PLUS PLAN (Plan No. 172)

INTRODUCTION OF LIC’S FUTURE PLUS PLAN (Plan No. 172)

1. INTRODUCTION:
It has been decided to introduce LIC’s Future Plus Plan (Plan No.172) with effect from 4th March, 2005.

It is a unit linked deferred pension plan. The policyholder can choose the plan with or without risk cover. He can also choose the level of cover within the limits, which will depend on whether the policy is a Single Premium or Regular Premium contract and the level of premium the policyholder agrees to pay. The allocated premiums will be applied to buy units for the fund type chosen. The Policyholder’s Unit Account will be subject to deduction of charges mentioned in Section 6 of this circular. Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment. There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be declared on a daily basis and will be based on the investment performance under each fund type.

The details of this plan are as follows:

2. INVESTMENT FUND TYPES:
The premiums allocated to purchase units will be invested according to the investment pattern prescribed for different fund types. The types of fund and their investment pattern are as under:

Fund Type
Investment in Government / Government Guaranteed Securities

Short-term investments such as money market instruments
(Including Govt. Securities)
Investment in Listed Equity Shares
1. Bond Fund

2. Income Fund
3. Balanced Fund

4. Growth Fund
Not less than 80%

Not less than 70%

Not less than 60%


Not less than 30%

100%

Not more than 90%

Not more than 80%


Not more than 50%
Nil

Not more than 20%

Not more than 30%


Not more than 60%

The Policyholder will have the option to choose any ONE of the above 4 Funds. In case no Fund is opted for, the allocated premiums shall, by default, be invested in the INCOME FUND.

For one month from the date of launch, the NAV under all funds will be Rs.10/-.

3. BENEFITS:
1. Benefit on Vesting:
On the policyholder surviving up to the date of vesting, the Bid Value of the units held in the Policyholder’s Unit Account will compulsorily be utilised to provide a pension based on the then prevailing immediate annuity rates under the relevant annuity option. The policyholder will have to intimate his/ her choice of annuity option to the Corporation 6 months prior to the date of vesting under the policy. An option will also be there to commute up to one-third of the Bid Value of the units held in the Policyholder’s Unit Account at the time of vesting of the annuity, which shall be paid as a lump sum. In case commutation is opted for, the amount of annuity/pension available will be reduced proportionately. There will also be an option to purchase pension from any other insurance company subject to Regulatory provisions. If the policyholder opts to purchase pension from other insurance company, he/she will have to inform LIC six months prior to the vesting date. In such cases, LIC will transfer the Bid Value of the units held in the Policyholder’s Unit Account directly to the chosen Company.

Notwithstanding the above mentioned, in case the amount at the vesting date is insufficient to purchase the minimum amount of pension allowed by LIC, then the balance in the Policyholder’s Unit Account at the vesting date shall be refunded to the Policyholder. As per current tax provisions such refunds will be treated as taxable income in the year in which they are received.

2. Benefit on death before Vesting:
In case of death of the policyholder within the policy term where Life cover is opted for and is in force, the nominee shall be eligible to get the Sum Assured under the Basic Plan together with the Bid Value, as at the date of settlement / booking liability, whichever is earlier, of units held in the Policyholders’ Unit Account. The benefit may be got as a lump sum or in the form of pension on his / her life, which will be based on the then prevailing immediate annuity rates under the relevant annuity option.

In case the policy is taken without risk cover, then the Bid Value of the units held in the Policyholder’s Unit Account shall be payable to the nominee. Again, the nominee can choose either a lump sum or a pension on his / her life, which will be based on the then prevailing immediate annuity rates under the relevant annuity option. He/ she can also take the proceeds partially as a lumpsum and the balance as an annuity.

If the policy is in lapsed condition, then only the Bid Value of the units held in the Policyholder’s Unit Account shall become payable to the nominee. This benefit may be chosen either as a lump sum or as a pension on his / her life, which will be based on the then prevailing immediate annuity rates under the relevant annuity option.

3. Annuity Options:
The rate at which the claim amount will be converted into a pension is not guaranteed.
5. IT Rebate:
As per present tax provisions, the premiums under the plan will be eligible for rebate under Section 80CCC of the IT Act, 1961.

6. Auto Cover:
If the Policyholder has opted for risk cover, then charges for the same shall be taken by canceling an appropriate number of units out of the Policyholder’s Unit Account every month. This will continue to provide relevant risk covers due under the policy, subject to the minimum balance in the Policyholder’s Unit Account.

During the period of Auto-cover, any/ all unpaid Premiums that have fallen due under the policy may be paid at anytime without interest.

For Regular Premium policies where 3 or more years’ premiums have been paid, the Auto-cover facility will be available throughout the remaining term of the policy, subject to the minimum balance condition.

However, for Regular premium policies where less than 3 years’ premiums have been paid, the Auto-cover facility will be available only for a period of 6 months from the due date of the First Unpaid Premium. Thereafter, the risk cover will cease and the policy will lapse. In such cases, the Policyholder shall have the option of reviving the policy within a period of 5 years from the due date of the First Unpaid Premium, by paying all unpaid premiums without interest and on submission of proof of continued insurability to the satisfaction of the Corporation. Once the policy lapses, no charge towards risk cover/s shall be deducted, but other charges, if any, shall continue to be deducted.

The balance in the Policyholder’s Unit Account should, at all times, be sufficient to cover the relevant charges under the policy. Notwithstanding what is stated above, under Regular Premium polices where at least 3 years’ premiums have been paid, the Policyholder’s Unit Account should, at all times, be sufficient to cover the relevant charges, subject to a minimum balance of one annualized premium in the Policyholder’s Unit Account. In case the Policyholder’s Unit Account falls below this limit, the policy shall be terminated and the balance amount in the Policyholder’s Unit Account will be refunded to the Policyholder. Annualised premium for this purpose shall be taken as one yearly premium or 2 half-yearly premiums.

7. Options:
1.Life Cover:
The policy can be issued either with or without life insurance cover. Wherever the Policyholder wants life insurance cover, he/ she can choose Sum Assured under the Basic Plan within the following limits, subject to a minimum of Rs.25,000 under Single Premium policies and Rs.50,000 under Regular Premium policies:
For Single Premium policies: up to and equal to the Single Premium
For Regular Premium policies: 5 to 20 (integer) times of the annualised premium. However, the maximum life cover shall not exceed the annualised premium multiplied by the term subject to a minimum of 5 times the annualised premium.

Further, Sum Assured under the Basic Plan shall be in the multiples of Rs.5,000.

2.Accident Benefit Rider Option:
Accident Benefit can be availed of as an optional Rider benefit by paying an additional premium of Rs.0.50 for every Rs.1,000/- of the Accident Benefit Sum Assured per policy year by cancellation of appropriate number of units out of the Policyholder’s Unit Account every month. On Accidental death of the Policyholder during the term of the policy, a sum equal to the Accident Benefit Sum Assured will become payable, provided the Accident benefit cover is opted for and is in force. The Accident Benefit rider option will not be available in case Sum Assured under the Basic Plan is zero. Further, it will be available up to the Sum Assured under the Basic Plan, subject to an overall limit of Rs.25 lakh under all policies of the Policyholder with the Corporation taken together.

This benefit will be available only till the Policy anniversary on which the age nearer birthday of the Policyholder is 70 years. No charges for this benefit shall be deducted from the Policy anniversary at which the benefit ceases.

3.Critical Illness Rider Option:
An amount equal to the Critical Illness Rider Sum Assured will be payable in case of diagnosis of defined categories of Critical Illness subject to certain terms and conditions, provided the Critical Illness Benefit cover is opted for and is in force. The maximum cover for this rider will be Rs.5 lakh under all policies of the Policyholder with the Corporation taken together. The Critical Illness Rider Sum Assured shall also not exceed the Sum Assured under the Basic Plan. So, the Critical Illness Benefit Rider will not be available in case the Sum Assured under the Basic Plan is zero.

This benefit will be available only till the Policy anniversary on which the age nearer birthday of the Policyholder is 60 years. No charges for this benefit shall be deducted from the Policy anniversary at which the benefit ceases.

Further, this benefit will be available till a critical illness claim, as per the conditions defined, arises under the policy. Once a claim under this Rider has been admitted, no subsequent charge towards Critical Illness Benefit Rider shall be deducted. Charges towards Life cover and Accident Benefit cover, if any, shall however continue to be deducted on a monthly basis, as usual.

4. ADDITIONAL FEATURES:
1. SWITCHING: The policyholder can switch between any fund types during the policy term. Within a given policy year, 4 switches will be allowed free of charge. Subsequent switches shall be subject to a switching charge of Rs.100 per switch.

On receipt of the policyholder’s application for a switch from one fund type to another, the Bid Value of the Units held in the Policyholder’s Unit Account on the date of switch after deducting switching charges, if any, shall be transferred to the New Fund selected by the policyholder and shall be utilized to allocate Fund Units at the Offer price under the New Fund at the said date of the switch.

2. TOP-UP (Additional Premium): The policyholder can pay Top-up in multiples of Rs.1,000/- without any limit at anytime during the term of the policy. In case of half-yearly or yearly mode of premium payment such Top-up can be paid only if all due premiums have been paid under the policy.

3. INCREASE / DECREASE IN BENEFITS: No increase (except to the extent of Top-up stated above) of benefits will be allowed under the plan. The Policyholder can, however, decrease any or all of the risk covers once in a year during the Policy term, provided all due premiums under the Policy have been paid. The reduced levels of cover will only be available if the limits specified in Section 10 below for the cover continue to be satisfied. Once the risk cover falls below the specified limit then no cover/s will be available. Further, once reduction in risk cover is allowed, the same cannot be subsequently increased/ restored.
4. MINIMUM GROWTH RATE: For the “Bond “ fund, the allocated premium, net of all charges and deductions, will have a guaranteed minimum growth rate of 3% p.a. compounding yearly, provided the minimum policy term is 10 years and the policy is held till the vesting date without switching to any other fund in between and all premiums under the policy are duly paid in time. The guarantee will not be applicable to any Top-up premiums paid. There will be no guarantee under other funds.

5. Partial withdrawals will not be allowed.

5. ALLOCATION RATE: The allocation rate applicable to the premium to determine the part of premium utilized to purchase units in the Policyholder’s Unit Account will depend on the mode of premium payment and on the premium size as under:
Single premium:
Premium Band
Allocation Rate
10,000 to 19,000
0.9600
20,000 to 49,000
0.9700
50,000 to 99,000
0.9775
1,00,000 to 4,99,000
0.9815
5,00,000 and above
0.9835
* Under Single premium an amount equal to (1 minus allocation rate) times the Single Premium will also be deducted from the Unit Fund at the First policy anniversary by canceling an appropriate number of units from the Policyholder’s Unit Account.
Regular premium:
Premium Band (per annum)
Allocation rate

First Year & 2nd year
Thereafter
5,000 to 9,000
0.8700
0.9750
10,000 to 19,000
0.8950
0.9750
20,000 to 49,000
0.9075
0.9750
50,000 to 99,000
0.9150
0.9750
1,00,000 to 4,99,000
0.9175
0.9750
5,00,000 and above
0.9200
0.9750
Allocation rates for top-ups: 0.9875
6. CHARGES AND FREQUENCY OF CHARGES:
i) MORTALITY, CRITICAL ILLNESS AND ACCIDENT BENEFIT CHARGE – Charges for Life cover, Critical Illness Benefit and Accident Benefit riders, if any, will be taken every month by canceling appropriate number of units out of the Policyholder’s Unit Account as per the rate prevalent at the time of policy issue or as amended by LIC from time to time based on actual experience.

Life cover and Critical Illness Benefit charges, during a policy year, will be based on the age nearer birthday of the Policyholder as at the Policy anniversary coinciding with or immediately preceding the due date of cancellation of units and hence may increase every year on each policy anniversary. Further, the charges will also depend on health, occupation and lifestyle of the Policyholder. A level charge at the rate of Rs.0.50 per thousand Accident Benefit Sum Assured per policy year will be made for Accident Benefit cover by cancellation of appropriate number of units out of the Policyholder’s Unit Account every month along with the Life cover and Critical Illness Benefit charges.

Charges for Life Cover, Critical Illness and Accident Benefit, as the case may be, shall be deducted only if these risk cover/s have been opted for.

(ii) OTHER CHARGES
1. FLAT FEE: A flat fee of Rs.15/- per month will be charged throughout the term of the policy by canceling appropriate number of units out of the Policyholder’s Unit Account.

2. ADMINISTRATIVE CHARGE: Re.1%o Sum Assured under the Basic Plan, if any, subject to a maximum of Rs.1,000 in each of the first 2 years.

3. POLICY CHARGE: Rs.0.10%o Sum Assured under the Basic Plan, where risk cover is opted for, in each of the first 2 years. In case no risk cover is opted for, the policy charge in each of the first 2 years of policy will be equal to Rs.0.10%o of the total Premiums payable throughout the policy term.

The charges under b) and c) above will be deducted by canceling appropriate number of units out of the Policyholder’s Unit Account and the deduction shall be made in two yearly instalments, first on the date of completion of the policy and second at the First Policy anniversary. Further, in the second year these charges shall be made at the original rate even if risk cover is reduced under the policy.

d) FUND MANAGEMENT CHARGE – Fund Management Charges (FMC) are fund dependent and are deductible on the date of computation of NAV at the following rates:
1.00% p.a. of Unit Fund for “Bond” Fund
1.00% p.a. of Unit Fund for “Income” Fund
1.25% p.a. of Unit Fund for “Balanced” Fund
1.50% p.a. of Unit Fund for “Growth” Fund
The NAV, thus declared, will be net of FMC.

e) SWITCHING CHARGES – as specified under Section 4 (a) above.

f) BID/OFFER SPREAD – Nil.

g) SURRENDER CHARGES – As specified under Section 15 below.

h) SERVICE TAX CHARGE – A service tax charge shall be levied on the Life cover, Accident Benefit and Critical Illness Benefit rider charges, if any, and shall be taken by canceling appropriate number of units out of the Policyholder’s Unit Account on a monthly basis as and when the corresponding Life cover, Accident Benefit and Critical Illness Benefit rider charges are deducted. The level of this charge will be as per the rate of service tax on risk premium, if any, as applicable from time to time. Currently, the rate of service tax is 10.2%.

(iii) RIGHT TO REVISE CHARGES: The Corporation reserves the right to revise all or any of the above charges, including the right to change the manner in which charges are to be recovered. The Corporation may also introduce new charges, as and when such a need may arise. The modification in charges will be done with prospective effect with the prior approval of IRDA and after giving the policyholders a notice of 3 months. In case a policyholder does not agree with the modified charges, he/ she shall be allowed to withdraw the Bid Value of the units held in his/her Unit Account without any surrender charge, if any.

7. LOANS:
No loan will be granted under this plan.

8. CEIS REBATE:
No rebate on premium is allowed to Corporation Employees.

However, for Corporation Employees, the allocation rate will be 100% for Single Premium policies subject to a deduction of Rs. 250 at the time of completion of Single Premium policy. There shall be a further deduction of Rs.250 at the First Policy Anniversary from the Policyholder’s Unit Account by cancellation of appropriate number of units.

In case of Regular Premium policies the allocation rate will be 100% from the 3rd Policy anniversary onwards. In the first 2 policy years the premiums shall be allocated to purchase units after deduction of Rs.250 in case of Yearly premiums and Rs.125 from each premium in case of half-yearly premiums respectively.

9. MODES OF PREMIUM PAYMENT:
Regular premium can be paid either in yearly or half yearly installments. The minimum Annual Premium will be Rs. 5,000/- increasing thereafter in multiples of Rs. 1,000/-.
There will be no mode specific charges/ rebates.

Single premium can be paid subject of a minimum of Rs. 10,000 and thereafter in multiples of Rs. 1,000.

10. ELIGIBILITY CONDITIONS AND FEATURES:
For Basic Plan
a) Minimum Sum Assured: NIL
b) Maximum Sum Assured: No Limit
c) Minimum Premium: Rs. 5,000 p.a. for Regular premium
Rs. 10,000 for Single premium
d) Maximum Premium: No Limit
e) Minimum Entry Age: 18 years completed
f) Maximum Entry Age: 65 years nearest birthday
g) Minimum Deferment period: 5 years
h) Minimum Age at Vesting: 40 years last birthday
i) Maximum Age at Vesting: 75 years last birthday

For Accident Benefit
a) Minimum Sum Assured: Rs. 25,000
b) Maximum Sum Assured: Rs. 25,00,000 taking Accident Benefit availed under all existing policies of the Life Assured with the Corporation and the Accident Benefit Sum Assured under the new proposal under consideration.
c) Minimum / Maximum Premium: No separate Limit
d) Minimum Entry Age: 18 years completed
e) Maximum Entry Age: 65 years nearest birthday
f) Minimum Deferment period: 5 years
g) Maximum Benefit Ceasing Age: 70 years nearest birthday

For Critical Illness Rider Benefit
a) Minimum Sum Assured: Rs. 50,000
b) Maximum Sum Assured: Rs. 5,00,000 taking Critical Illness riders availed under all existing policies of the Life Assured with the Corporation and the Critical Illness Rider Sum Assured under the new proposal under consideration.
c) Minimum /Maximum Premium: No separate Limit
d) Minimum Entry Age: 18 years completed
e) Maximum Entry Age: 50 years nearest birthday
1. Maximum Benefit Ceasing Age: 60 years nearest birthday
g) Deferment period: 10 to 35 years

11. MORTALITY AND CRITICAL ILLNESS BENEFIT CHARGES:
The Life Cover and Critical Illness cover charges per Rs.1,000/- Sum Assured for standard lives are given in Annexure I.

In case of substandard lives Life Cover charges will be inclusive of the extra charged.

The Class I extra charge for Life Cover shall be 25% of the Life Cover charge for standard lives. Charge for higher EMR shall be multiples of the Class I extra charge. The extra charges for Class I to VI for Life cover are given in Annexure I. Such Extra charge will be included in the Life cover charges.

The standard extra to be charged in case of Occupation Extra, Handicapped lives etc. shall be the rates applicable to Endowment Plan and shall also be included in the Life cover charges.

12. COMMISSION PAYABLE TO AGENTS/ CORPORATE AGENTS/ BROKERS & DEVELOPMENT OFFICER’S CREDIT:
Commission to Agents, Corporate Agents and Brokers:
1. For Regular Premium polices – 7.5% of the premium in the first year and 2% of the premium for subsequent years
2. For Single Premium policies – 2% of the premium
3. 1% of the amount made as Top-up during any year
4. There will be no bonus commission

Development Officer’s credit will be as under:
20% in case of Regular Premium policies
5% in case of Single Premium Policies

13. UNDERWRITING:
The Basic Plan without risk cover will be available to all male and female lives. Such policies shall be completed at Branch Office regardless of the level of premium.

If Life cover is opted for, then the plan will be available to all lives up to Class VI EMR. All proposals shall be accepted with standard age proof or NSAP1.
For the purpose of determining SUC, underwriting limits and calling for Special reports, the Sum Assured under the Basic Plan and Critical Illness Rider Sum Assured taken together shall be considered. Cost of medical examination will be borne by the Corporation subject to a limit of Rs. 4%o Sum Assured under the Basic Plan. For Financial Underwriting, the Critical Illness Rider Sum Assured need not be taken into account. Current Rules regarding MHR shall be applicable to this plan.

The Critical Illness Rider Benefit will be available to standard lives only. In case of female lives, this benefit will be available only to Category I and II lives. Other terms and conditions for underwriting in case of Critical Illness Rider shall also apply.

14. PAID-UP VALUE:
If premiums are payable either yearly or half-yearly and the same have not been paid under the Policy, the Policy will become paid-up. If the Policyholder has opted for Life cover, Accident Benefit and / or Critical Illness Benefit riders, then these risk covers will continue subject to the provisions of “Auto-cover” as stated under Section 3(E) above.

The paid-up value under the policy under different circumstances shall be as under:

(i) If premiums have been paid for less than 3 years and further premiums have not been duly paid, then within 6 months from the due date of the First Unpaid Premium following benefits shall become payable:
1. In case of Death: Sum Assured under the Basic Plan plus Bid Value of units held in the Policyholder’s Unit Account.
2. In case of death due to accident: Accident Benefit Sum Assured in addition to the amount under A above.
3. In case of Critical Illness Benefit claim: Critical Illness Rider Sum Assured.
4. In case of surrender or on Vesting: Bid Value of units held in the Policyholder’s Unit Account less surrender charges, if any.

(ii) If premiums have been paid for less than 3 years and further premiums have not been duly paid, then after 6 months from the due date of First Unpaid Premium:
The Auto-cover will expire and the policy will lapse. The paid-up value available will then be the Bid Value of units held in the Policyholder’s Unit Account less Surrender charge, if any.

(iii) If premiums have been paid for 3 years or more and further premiums have not been duly paid, then the following benefits shall become payable:
1. In case of Death: Sum Assured under the Basic Plan plus Bid Value of units held in the Policyholder’s Unit Account.
2. In case of Death due to accident: Accident Benefit Sum Assured in addition to the amount under A above.
3. In case of Critical Illness Benefit claim: Critical Illness Rider Sum Assured.
4. In case of Surrender or on Vesting: Bid Value of units held in the Policyholder’s Unit Account.

Notwithstanding what is stated above, the balance in the Policyholder’s Unit Account should be sufficient to cover the relevant charges. However, for all Regular Premium policies where at least 3 years’ premiums have been paid, the Policyholder’s Unit Account, at all times, shall be subject to a minimum balance of one annualized premium in the Policyholder’s Unit account. In case the Policyholder’s Unit Account falls below this limit, the policy shall compulsorily be terminated and the balance amount in the Policyholder’s Unit Account will be refunded to the Policyholder.

15. SURRENDER VALUE AND SURRENDER CHARGE: The benefit available on surrender will depend on whether the policy is a Single premium or Regular premium contract, duration of the policy at surrender and the number of years for which premiums have been paid. The cash surrender value will be the Bid Value of units held in the Policyholder’s Unit Account at the date of surrender after deduction of surrender charge, which will be as under:

Single premium
Duration since date of commencement Surrender Charge
Less than 1 Year: 4% of Bid Value

1 year or more but less
than 2 Years : 2% of Bid Value
2 years or more: Nil

Regular Premium
Number of years premiums have been paid Surrender Charge
If one year’s premium or less are paid: 60% of Bid Value
If more than one year’s but less
than 2 years’ premiums are paid : 40% of Bid Value
If 2 or more years’ premiums are paid: Nil

As per current tax provisions any amount taken on account of surrender will be treated as taxable income in the year of surrender.

Once a policy is surrendered it cannot be reinstated.

16. REVIVALS:
In case risk cover is opted for then for Regular Premium policies where less than 3 years’ premiums have been paid, the Auto-cover facility as described in Section 3(E) above will be available only for a period of 6 months from the due date of the First Unpaid Premium. Thereafter, the risk cover/s will cease and the policy will lapse. In such cases, the Policyholder shall have the option of reviving the policy at any time during the premium paying term but within a period of 5 years from the due date of the First Unpaid Premium, by paying all unpaid premiums without interest and on submission of proof of continued insurability to the satisfaction of the Corporation. On revival, charges for risk cover/s shall be deducted from the date of lapse i.e. from the date of expiry of Auto-cover.

For Regular premium policies where 3 or more years’ premiums have been paid, cover/s shall continue, wherever opted for, due to Auto-cover facility until the Policyholder’s Unit Account reaches the minimum level as mentioned under Section 3(E) above.

17. NORMAL REQUIREMENTS FOR CLAIM:
The normal documents which the claimant/s shall submit while lodging a claim in case of death of the policyholder shall be the claim forms as prescribed by the Corporation accompanied with the original policy document, proof of title, proof of death, proof of accident, medical treatment prior to death, employer’s certificate, whichever is applicable together with the proof of age, if not already admitted.

At the Vesting date or on earlier Surrender, the Life Assured shall submit the discharge form along with the original policy document besides the proof of age, if not admitted earlier. In case the age is found to be higher from that previously taken then the difference in the charges for the correct age shall be deducted with interest at such rates as determined by the Corporation form time to time.


18. ASSIGNMENTS / NOMINATION:
Notice of change of nomination should be submitted for registration to the office of the Corporation, where this policy is serviced. In registering nomination the Corporation does not accept any responsibility or express any opinion as to its validity or legal effect.

No assignment will be allowed under this plan.

19.COOLING-OFF PERIOD:
If a policyholder 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. The amount to be refunded in case the policy is returned within the cooling-off period shall be determined as under:

Bid Value of units in the Policyholder’s Unit Account
Plus unallocated premium.
Plus Administrative charge deducted
Less balance policy stamping cost @ Rs.0.10%o Sum Assured under the Basic Plan/ Total premium payable throughout the policy term, as the case may be
Less Actual cost of medical examination and special reports

In case the policy is returned during the cooling-off period, Commission /cost of Development Officer’s credit, if paid, shall be recovered from the concerned Agent/ Development Officer.

20. BACK DATING:
Back dating of policy will not be allowed.

21. POLICY STAMPING:
Policy Stamping will be at the rate of Rs.0.20 per thousand Sum Assured under the Basic Plan.

However, in case the policy is taken without any life insurance cover then policy stamps will be affixed
at the rate of Rs.0.20 per thousand of total premium payable throughout the term of the policy.

22. REINSURANCE:
For reinsurance purposes, the retention limits applicable will be those applicable to Term Assurance Plans.

23. ACCOUNTING OF INCOME AND OUTGO
Instructions regarding the accounting procedure to be followed under the plan shall be issued separately by Finance & Accounts Department, Central office.