Jeevan Madhur (Plan No. 182)

Introduction of LIC’s Jeevan Madhur (Plan No. 182)

It has been decided to introduce LIC’s Jeevan Madhur Plan (Table no.182) with effect from 28th September, 2006.

1. INTRODUCTION:
It is a Micro Insurance plan where the proponent may choose the premium amount, mode and term of the policy and the death benefit is dependent upon the premiums payable during the selected term irrespective of age at entry but the amount payable at maturity, called Maturity Sum Assured will vary for different ages and term.

2. PREMIUMS:
The policy is available for terms 5 to 15 years. Premiums are payable regularly during the policy term at weekly, fortnightly, monthly, quarterly, half-yearly or yearly intervals over the term of the policy.

3. BENEFITS:

Death Benefit: Total premiums payable during the entire term of the policy along with vested bonuses, if any. (for e.g. 12 x n x monthly premium, where n is the term of the policy).

Maturity Benefit: Maturity Sum Assured along with vested bonuses, if any.

Accident Benefit:
An additional sum equal to death benefit sum assured shall be payable during the term of the policy. This is an in-built benefit and hence no additional premium is to be charged for it.

4. PARTICIPATION IN PROFITS OF THE CORPORATION:
Provided the policy is in full force, then depending upon the Corporation's experience with regard to policies issued under this plan, this policy will be eligible for a Simple Reversionary Bonus at such rate and on such terms as may be declared by the Corporation.

Simple Reversionary Bonuses shall be declared per thousand Death Benefit Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. Bonuses will be added during the selected term or till death, if it occurs earlier, provided the policy is in full force. In case of a paid up policy bonuses shall be payable only if at least 3 full years’ premiums have been paid.
In the event of policy being surrendered, the discounted value of vested bonuses, if any, as applicable on the date of surrender, will be payable.

5. ELIGIBILITY CONDITIONS AND RESTRICTIONS:

Minimum age at entry : 18 years (completed)
Maximum age at entry : 60 years (nearest birthday)
Maximum Maturity Age : 65 years (nearest birthday)
Policy Term : 5 to 15 years
Minimum Sum Assured : Rs. 5,000 /-
Maximum Sum assured : Rs. 30,000/-
Minimum/Maximum Premium Amount: Minimum instalment premium for different modes of premium payment shall be:
Weekly: Rs. 25/-
Fortnightly: Rs. 50/-
Monthly: Rs. 100/-
Quarterly/Half-yearly/Yearly: Rs. 250/-
Further, the premium chosen by the proposer shall be subject to the minimum and maximum sum assured of Rs. 5,000/- and Rs. 30,000/- respectively payable on death and maturity under this plan.

6. COMMISSION FOR MICRO-INSURANCE AGENTS:
This plan will be sold by Micro-Insurance agents only.
Commission rates (as percentage of premium) payable to Micro-Insurance Agents during the term are as under:
First year: 10%
Subsequent years: 6%, if policy term is 5 to 8 years
8%, if policy term is 9 to 11 years
10%, if policy term is 12 to 15 years.

7. UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS:
This plan will be available to all earning male and female lives without any medical examination.

Proposals under this plan will be considered independently without clubbing the Sum Under Consideration with previously accepted proposals under traditional and/or linked plans.
No special reports will be called for irrespective of the sum under consideration.
Proposal will be considered on the basis of satisfactory Declaration of Good Health (DGH). If DGH is not satisfactory, the proposal will not be accepted.
Age Proof – Standard or Non-standard age-proofs are acceptable as per usual rules.

8. GRACE PERIOD FOR PAYMENT OF PREMIUM:
A grace period of one calendar month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly or fortnightly or weekly premiums.

9. AUTO-COVER :
If at least two full years’ premiums have been paid in respect of this policy, any subsequent premium be not duly paid, full death cover shall continue from the due date of First Unpaid Premium (FUP) for a period of two years or till the end of policy term, whichever is earlier. This period of 2 years from the due date of FUP shall be called Auto-Cover period.

During the Auto Cover Period, the Life Assured can pay one or more instalments of premium with interest without submission of any evidence of health. On payment of one or more arrears of premiums with interest, the Auto Cover Period of 2 years from the due date of new FUP shall again be available during the term of the Policy.

If death occurs during the Auto Cover period, then death benefit after deducting unpaid premiums, with interest, as also premiums falling due before the next anniversary of the policy, is payable along with the vested bonuses, if any.

During the Auto Cover Period, the Accident Benefit shall not be available.

10. PAID-UP & SURRENDER VALUES (GSV,SSV):
If after at least two full years’ premiums have been paid in respect of this policy, any subsequent premium be not duly paid, this policy shall not be wholly void after the expiry of two years Auto Cover Period from the due date of First Unpaid Premium, but shall subsist as a paid up policy. The Maturity Sum Assured shall be reduced to such a sum, called the paid-up value, as shall bear the same ratio to the Maturity Sum Assured as the number of premiums actually paid shall bear to the total number of premiums originally stipulated for in the policy. This paid up value along with vested bonuses, if any, shall be payable on the date of maturity or at Life Assured’s prior death.

The Accident Benefit cover will cease to apply if the policy is in lapsed condition.

The Guaranteed Surrender Value shall be available after at least two full years’ premiums have been paid. The Guaranteed Surrender Value is equal to 30 per cent of the total amount of premiums paid.

Special Surrender Value will be calculated using the surrender value factors as applicable in the case of Endowment Plan and paid-up value as defined above.

11. REVIVALS OR REINSTATEMENTS OF LAPSED POLICIES:
If the due premium is not paid within the days of grace, the policy will lapse. If the Policy has lapsed, and the period of Auto cover, if applicable, is over, it may be revived within a period of 5 years from the due date of first unpaid premium during the lifetime of the life assured but before the date of maturity. The revival shall be made on submission of proof of continued insurability to the satisfaction of the Corporation (i.e. the satisfactory Declaration of Good Health) and the payment of all the arrears of premium together with interest (compounding half-yearly) at such rate as may be prevailing at the time of revival. The Corporation reserves the right to accept the revival at original terms or decline the revival of the discontinued policy. The revival of the discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated to the Life Assured.

The minimum interest chargeable in case of revival of the policies/ payment of premium during auto-cover period after the days of grace, shall be Rs 5/-.

12. LOAN:
No loan facility is available under this plan.

13. 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.

14. 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.

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 besides proof of age, if the age is not admitted earlier.

15. 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.

16. BACK DATING INTEREST:
Dating back will not be allowed under the policy.

17. POLICY STAMPING:
Policy stamping charges will be 20 paise per thousand of Death Benefit Sum Assured or Maturity Sum Assured whichever is greater.

18. REINSURANCE:
There will be no reinsurance under this plan.

19. 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.
20. MATURITY SUM ASSURED TABLE: Maturity Sums Assured per Rs. 1200 per annum premium for different age at entry