GROUP INSURANCE SCHEME FOR CONFIRMED TIED AGENTS

GROUP INSURANCE SCHEME FOR CONFIRMED TIED AGENTS OF THE CORPORATION

It has been decided to introduce a Group Insurance Scheme for Confirmed Tied Agents of the Corporation w.e.f. 1st September, 2007. The details of the same are as under.

A. GENERAL

1. Date of Commencement: The Date of Commencement of the Scheme is 01.09.2007.
2. Purpose of the Scheme: The purpose of the scheme is to offer insurance to all the confirmed tied agents of the Corporation, who have completed one year from the date of appointment.
3. Confirmed Agents: Agents confirmed and completed one year from the date of his appointment.
4. Eligibility: All the Confirmed tied Agents who have completed one year from the date of appointment and who are aged less than 65 years. For details refer scheme rules
5. Coverage and Premium: The insurance cover is as under:

Category Agency Standing at Credit
As at 31.08.2007. Cover Premium Rs. p.a.
I 1 to 3 Years 50,000 120/-
II >3 to 5 Years 1,00,000 240/-
III >5 to 10 Years 3,00,000 720/-
IV More than 10 Years 5,00,000 1,200/-


5. Servicing of the Scheme: The Scheme will be serviced by the P&GS Units who are at present servicing Group Schemes in their Divisional areas as per Annexure ‘A’.



B. FUNCTIONS OF BRANCH OFFICES ON LIFE SIDE (OTHER THAN P&GS UNITS)

1. The Marketing Dept., C.O., will be issuing a detailed circular about the procedural formalities. This will be the basis for administration aspects.
2.
a. The scheme is compulsory for all the confirmed agents and for those agents whose agency will be confirmed on or after the date of commencement of the scheme.
b. A Negative option is provided for all the existing eligible agents, who are confirmed on the date of commencement of the scheme. The eligible agent, who is not interested to join the scheme, has to submit his option to opt out of the scheme on or before 31.08.2007, to the Branch where his agency is attached. In case, no such communication is received by the Branch on or before 31.08.2007, it will be construed that the agent concerned has consented to join the scheme.

c. Such agents who prefer to opt out of the scheme will not be allowed to join the scheme later.


3. As the Scheme is of compulsory in nature for all the confirmed agents, the agent who completes one year from his date of appointment in the middle of the policy year, will be covered from the date of completion of one year, where the completion of one year is on the first working day of the month. In all other cases coverage will start from the first day of the following month. Premium at the rate of Rs.10/-p.m will be deducted from the commission for the remaining months till the next policy anniversary (1st September every year).
4. The Premiums deducted by the Branch Offices should be credited to A/C Code 111158.
5. The amount to the credit of A/C Code 111158) is to be transferred to A/C Code 112133 - P&GS Contra in Life Books on 31st March of every year.
6. For control and reconciliation purpose, a sub ledger giving details of the members of the group and recovery particulars is to be maintained by each Branch and sent to P & G S Unit on 31st of March every year.
7. On receipt of intimation of death of a member, the concerned Branch will forward the claimants statement cum discharge with certificate of last premium deducted and a copy of Death Certificate to the concerned P & G S Unit, for sanction of the claim.
8. Claim will be settled by the respective P & G S Unit in favour of the Nominee and sent to the Branch Manager of the concerned Office.
9. The claim amount will be paid by the Branch to the nominee under proper receipt.
10. In case there is any existing scheme of GI for Agents of a Branch, the same shall stand terminated from the next Annual Renewal Date.


C. FUNCTIONS OF P&GS UNITS

1. The Proposal form and Rules as per the Annexure “B” have been signed at the Central Office level. Master Policy will be issued by the Central Office. Units need not issue any Master Policy at their end.
2. The Master Policy number is 693223. Each Unit should create the policy master with the above number.
3. The rules of the scheme are enclosed. Please go through the same carefully.
4. The Branch Offices will be transferring their collections towards the premium to P&GS Units on 31st March of every year through P&GS Contra Accounts along with the details as referred in B(6) above. The same will be used for adjustment of premiums.
5. The amount to the credit of A/C Code 112133 is to be appropriated to A/C Codes 9771 (First Year Premium –GI for Agents). Payment of claim is by debiting A/C Code 9033 (Death Claims –GI for Agents).
6. No change in the rules and procedures of the scheme is to be done without prior approval of Central Office.
7. At the end of the policy year, total number of members covered and total number of death reported (irrespective of the settlement of claim) is to be reported to the controlling Zonal Office which in turn will consolidate and submit to Central Office.
8. Kindly note that Double Accident Benefit is not available under this scheme.
9. P&GS Units may take credit for NB lives & NB premium credit in the month of March 2008 when the premium received in respect of all offices is finally transferred to our P&GS Unit. No credit can be taken for number of schemes.

The P & G S Units and Branch Offices of LIC are requested to bring these instructions to the notice of all concerned.






EXECUTIVE DIRECTOR (P&GS)


Encl: Annexure A: List of Offices along with P & G S Units.
Annexure B: Scheme Rules.
Claimant Statement cum Discharge form.









Annexure ‘A’

LIST OF OFFICES ALONG WITH ATTACHED P&GS UNIT

NORTHERN ZONE
Branches under the DO SERVICING P&GS UNIT
1. Ajmer Ajmer
2. Amritsar Jalandhar
3. Bikaner Jaipur
4. Chandigarh Chandigarh
5. New Delhi I New Delhi DO I P&GS
6. New Delhi II New Delhi DO I P&GS
7. New Delhi III New Delhi DO I P&GS
8. Jaipur Jaipur
9. Jalandhar Jalandhar
10. Jodhpur Jodhpur
11. Karnal Karnal
12. Rohtak * Karnal
13. Ludhiana Ludhiana
14. Shimla Shimla
15. Srinagar Jammu
16. Udaipur Ajmer

EASTERN ZONE
Branches under the DO SERVICING P&GS UNIT
17. Asansol Asansol
18. Bongaigaon Guwahati
19. Kolkata Metro I KMDO I P&GS
20. Kolkata Metro II KMDO I P&GS
21. Kolkata Subarban KMDO I P&GS
22. Guwahati Guwahati
23. Howrah KMDO I P&GS
24. Kharagpur * KMDO I P&GS
25. Jalpaiguri Jalpaiguri
26. Jorhat Jorhat
27. Silchar Silchar

EAST CENTRAL ZONE
Branches under the DO SERVICING P&GS UNIT
28. Behrampur Bhubaneshwar
29. Bhagalpur Patna
30. Cuttack Bhubaneshwar
31. Hazaribaug Jamshedpur
32. Jamshedpur Jamshedpur
33. Muzaffarpur Patna
34. Patna Patna
35. Sambalpur Sambalpur

NORTH CENTRAL ZONE
Branches under the DO SERVICING P&GS UNIT
36. Agra Agra
37. Aligarh Agra
38. Allahabad Allahabad
39. Bareilly Bareilly
40. Dehradun Dehradun
41. Gorakhpur Gorakhpur
42. Haldwani Bareilly
43. Kanpur Kanpur
44. Lucknow Lucknow
45. Faizabad * Lucknow
46. Meerut Meerut
47. Varanasi Varanasi

CENTRAL ZONE
Branches under the DO SERVICING P&GS UNIT
48. Bhopal Bhopal
49. Gwalior Gwalior
50. Indore Indore
51. Jabalpur Jabalpur
52. Raipur Raipur
53. Satna Jabalpur
54. Shadol Jabalpur

SOUTHERN ZONE
Branches under the DO SERVICING P&GS UNIT
55. Chennai DO I Chennai DO I P&GS
56. Chennai DO II Chennai DO I P&GS
57. Coimbatore Coimbatore
58. Ernakulam Ernakulam
59. Kottayam Kottayam
60. Kozhikode Kozhikode
61. Madurai Madurai
62. Salem Salem
63. Thanjavur Thanjavur
64. Thiruvananthapuram Thiruvananthapuram
65. Tirunelveli Tirunelveli
66. Vellore Vellore










WESTERN ZONE
Branches under the DO SERVICING P&GS UNIT
67. Ahmedabad Ahmedabad
68. Amravati Amravati
69. Aurangabad Aurangabad
70. Bhavnagar Rajkot
71. Gandhinagar Gandhinagar
72. Goa Goa
73. Kolhapur Satara
74. Mumbai DO I MDO I P&GS Unit – Yogakshema
75. Mumbai DO II MDO I P&GS Unit – Sion
76. Mumbai DO III MDO I P&GS Unit – Ville Parle
77. Mumbai DO IV MDO I P&GS Unit – Yogakshema
78. Nadiad Vadodara
79. Nagpur Nagpur
80. Nanded Aurangabad
81. Nashik Nashik
82. Pune Pune
83. Solapur * Pune
84. Rajkot Rajkot
85. Satara Satara
86. Surat Surat
87. Thane Thane
88. Vadodara Vadodara


SOUTH CENTRAL ZONE
Branches under the DO SERVICING P&GS UNIT
89. Bangalore I Bangalore I P&GS
90. Bangalore II Bangalore I P&GS
91. Belgaum Dharwad
92. Cuddapah Cuddapah
93. Dharwad Dharwad
94. Hyderabad Hyderabad
95. Karimnagar Warangal
96. Machilipatnam Vijayawada
97. Mysore Mysore
98. Nellore Cuddapah
99. Raichur Raichur
100. Rajahmundry Vijayawada
101. Secunderabad Hyderabad
102. Udupi Mangalore
103. Shimoga * Mangalore
104. Vishakhapatnam Vishakhapatnam
105. Warangal Warangal

* On decentralization of accounting functions to new Divisions

ANNEXURE B

GROUP INSURANCE SCHEME FOR CONFIRMED TIED AGENTS OF
THE LIFE INSURANCE CORPORATION OF INDIA
RULES OF THE SCHEME

SECTION – I

1. DEFINITIONS :

In these Rules, where the context so admits, the masculine shall include the feminine and the following words and expressions shall unless repugnant to the context, have the following meanings:-

i) “COMPANY” shall mean LIFE INSURANCE CORPORATION OF INDIA established under Section 3 of the Life Insurance Corporation Act, 1956.



ii) Master Policyholder shall be Executive Director (Marketing), LIC of India, Central Office, Mumbai – 400021.

iii) “THE NODAL AGENCY” shall mean the Branch of the Corporation and any other company / firm or Corporation which may be in future be managed or controlled by or become associated with the Corporation and which may agree to become so, by these rules

iv) “THE CORPORATION” shall mean the Life Insurance Corporation of India established under Section 3 of the Life Insurance Corporation Act, 1956.

v) “THE SCHEME” shall mean Group Insurance Scheme for confirmed Tied Agents of the Corporation

vi) “CONFIRMED AGENT” shall mean the agent confirmed and completed one year from the date of his appointment.


vii) “THE RULES" shall mean the Rules of the Scheme as set out below and as amended from time to time.

viii) “THE MEMBER” shall mean the particular Agent who has been admitted to membership of the Scheme and on whose life an assurance has been or is to be effected in accordance with these Rules.

ix) “EFFECTIVE DATE” shall mean 1st September, 2007, the date from which the Scheme commences.

x) “ENTRY DATE” shall mean (a) in respect of members joining the scheme on the effective Date, Effective Date, and (b) in respect of member joining the scheme after the effective date; the 1st working day of the month, wherever the date of completion of one year from the date of appointment is on the first working day, in all other cases the same will be the 1st of the following month in which he becomes eligible.

xi) “ANNUAL RENEWAL DATE” shall mean, in relation to the Scheme 1st September, 2008 and 1st of September in each subsequent year.

xii) “TERMINAL DATE” shall mean in respect of each Member the Date on which the Member completes the age of 65 years or the date on which the agency terminates

xiii) “THE ASSURANCE” shall mean the particular Assurance or Assurances to be effected on the life of the Member.

xiv) “THE BENEFICIARY” shall mean the person or persons who has/have been appointed by the Agent as nominee under Agents Rules 1972 as per the nomination register maintained by the Branch, where the agency is attached.

2. Nodal Agency will act for and on behalf of the Members in all matters relating to the Scheme and every act done by agreement made with and notice given to the Corporation by the Nodal Agency shall be binding on the Members.

3. ELIGIBILITY:-

(a) Agents attached to the Corporation who satisfy the following conditions:
i. Age is between 18 and 65 years.
ii. Agent is confirmed
iii. Agent who is on roll as on the effective date
iv. Agent who is on roll as on the effective date and is otherwise eligible to join the scheme, provided he has not given an option not to join the scheme.

(b) No member shall withdraw from the Scheme while he is still an eligible member satisfying the conditions of Eligibility described above.
(c) Present Agents of the Corporation though eligible but have exercised the option not to join the scheme on the Effective Date shall not be allowed to join the scheme at any future Date.
(d) All the Agents appointed on or after the date of commencement of the scheme, who are otherwise eligible, shall compulsorily join the scheme on confirmation

4. EVIDENCE OF HEALTH:

Satisfactory evidence of health as required by the Corporation shall be furnished by every Eligible member, at the time of his entry into the Scheme and on each occasion when an increase in Assurance is granted. The terms of acceptance may be varied if in the opinion of the Corporation the evidence of health is not satisfactory or other special hazards exist. At present if the agent satisfies eligibility criterion, no evidence health is required.

SECTION – II

CONTRIBUTIONS, ASSURANCE & BENEFITS

5 CONTRIBUTIONS:

The Nodal Agency shall arrange to collect and remit to the P & G S Unit of the Corporation in respect of all eligible Members/ on the member becoming eligible, in respect of each member from the entry date such contributions, as are required to secure and continue the Assurance on his life as described under Rule 6 hereunder.

Premium payable will be as under:-

Category Agency Standing at Credit as at 31.08.2007. Premium Rs. p.a.
I 1 to 3 Years 120/-
II >3 to 5 Years 240/-
III >5 to 10 Years 720/-
IV More than 10 Years 1,200/-

In respect of member confirmed during the middle of the policy year Proportionate premium at the rate of Rs.10/-p.m will be deducted from commission for the remaining months, till the next policy anniversary.


6 ASSURANCE:

An Assurance shall be effected on the life of each member under One Year Renewable Term Insurance Plan for a sum assured as under:

Category Agency Standing at Credit as at 31.08.2007. Cover
I 1 to 3 Years 50,000
II >3 to 5 Years 1,00,000
III >5 to 10 Years 3,00,000
IV More than 10 Years 5,00,000


The Assurances shall be held by the Nodal Agency UPON TRUST for the benefit of the persons entitled to in accordance with these Rules. A member eligible to move from a lower category to a higher category shall be eligible for the increased cover from the 1st of September, following the date he has qualified for higher category cover.

An agent, whose agency is confirmed in the middle of the policy year, will be covered from the date of completion of one year from the date of his appointment, where the completion of one year is on the first working day of the month. In all other cases coverage will start from the first day of the following month.


7 BENEFITS ON DEATH PRIOR TO TERMINAL DATE

On the death of the Member, whilst he is insured, prior to Terminal Date, the sum assured under the Assurance then in force shall be payable to the Nodal Agency for the benefit of the Beneficiary.

8 TERMINATION OF ASSURANCE:

The Assurance on the life of a Member shall terminate upon the happening of any of the following events and no benefit will become payable there under:-

(a) Discontinuance of contributions relating to the Assurance for any reason whatsoever.
(b) The Member reaching the Terminal Date.
(c) The Member ceasing to be agent attached to the Corporation

9 RESTRAINT ON ANTICIPATION OR ENCUMBRANCE:

T he benefits assured under the Scheme are strictly personal and cannot be assigned, charged or alienated in any way.

10 DISCONTINUANCE OR AMENDMENT OF THE SCHEME:

The Nodal Agency reserves the right to discontinue the Scheme at any time or to amend the Rules thereof on any Annual Renewal Date subject to one month notice being given to the Members and the Corporation. The Corporation reserves a similar right to discontinue the scheme subject to one month notice given to the Nodal Agency.

11 JURISDICTION:
All Assurances issued under the Scheme shall be Indian Contracts. They will be subject to Indian Laws including the Indian Insurance Act, 1938 as amended, the Life Insurance Corporation Act, 1956, the Income Tax Act, 1961 and to any legislation subsequently introduced. All benefits under the Scheme arising out of death of any Member shall be payable in Indian Rupees.

12 MASTER POLICY:

The Corporation will issue a Single Master Policy incorporating all the Assurances effected under the scheme.


13 APPOINTMENT OF BENEFICIARY:

Every Member shall appoint one or more of his wife or child/children or dependants to be his nominee. In the event of death of the Member, the Benefits then in force under the Assurance on his life will be paid to the nominee appointed by the Member and maintained by the Nodal Agency in the Register of Members kept by them. If the member does not have a wife or child/children or dependents then he shall appoint his legal personal representative to be the nominee. For this purpose the nomination register maintained by the Branch, where the agency is attached, in respect of other dues payable by the Corporation will suffice. The same nominee as appointed by the agent under Agents Rule 1972 shall be valid for payment of GI claim as well.

14 RATES OF PREMIUM AND CONDITIONS OF ASSURANCE:

The rate of premium and conditions of Assurance under which the Corporation is prepared to arrange the Scheme shall be subject to change based on claim experience and the conditions of acceptance of risks and rates of premium may be amended by the Corporation from time to time on any Annual Renewal Date subject to one month notice being given to the Nodal Agency.

15 In the case of dispute in the interpretation of any of the provisions of the Rules, the same will be referred to the Chairman of the Life Insurance Corporation of India, whose decision thereon shall be final.


Place:
Date : (Signature of Executive Director(Mktg.)
LIC of India, Central Office)

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Claim Form for Agents

LIFE INSURANCE CORPORATION OF INDIA

CLAIMANTS STATEMENT CUM DISCHARGE FORM



Name of the Scheme Group Insurance Scheme for Confirmed Tied Agents
of the Corporation. 2007
Master Policy Number 693223.

Name of the Deceased Agent ____________________________
Agency code with Branch Name _______________________________

Applicable Insurance cover on the date of Death Rs________

Was his Agency in force Yes/No

Date of death (Attach Certificate) _______________ Year of Appointment __________

Name of Nominee _____________________________
Relationship of nominee and Age _____________________________

Bank A/c details of the Nominee ____________________________

Discharge: Received with thanks from Life Insurance Corporation of India a sum of Rs_____ being the death claim proceeds receivable on the life of late ________________ ex agent of LIC of India

Signature of Nominee and Date ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬______________________________


RECEIPT
STAMP



CERTIFICATE OF CHIEF/SR/BRANCH MANAGER

This is to certify that the claimant is the nominee as per the register of Nomination. We also certify that Sri/Smt________________ was a confirmed agent and his agency was in force. The premium of Rs ____was deducted from his commission on_____under the Group Insurance Scheme for Confirmed Tied Agents of the Corporation 2007
The premium for the period ___________ was deducted from the agency commission of the agent. His Death Certificate is enclosed.
Cheque for the claim amount may be ( ) Send directly to the nominee
( Tick appropriate box) ( ) Cheque issued in favour of Branch Manager
( ) Cheque in favour of nominee be sent to branch

Chief/SR/Branch Manager __________________
Branch ________________ Date ____________
Office seal