MARKET PLUS - I (Plan No. 191)

INTRODUCTION OF LIC’s MARKET PLUS - I (Plan No. 191)

1. INTRODUCTION
It has been decided to introduce LIC’S Market Plus - I (Plan No. 191) with effect from 17th June 2008. The Unique Identification Number (UIN) for LIC’s Market Plus – I plan is 512L249V01.This number has to be quoted in all relevant documents furnished to the policyholders and other users (public, distribution channels).

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 the mode and amount of premium he desires to pay. The allocated premium will be utilized to purchase units as per the selected fund type. The Policyholder’s Fund Value will be subject to deduction of charges mentioned in para 3 of this circular. Units will be allotted and cancelled based on the Net Asset Value (NAV) of the respective fund applicable to the date of allotment / cancellation. There is no Bid-Offer spread (both the Bid price and Offer price of units will be equal to the NAV). The NAV will be computed on daily basis and will be based on the investment performance, Fund Management Charges (FMC) and whether fund is expanding or contracting under each fund type. Other 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 / Corporate Debt Short-term investments such as money market instruments
Investment in Listed Equity Shares Details and objective of the fund for risk /return
Bond Fund

Secured Fund


Balanced Fund


Growth Fund Not less than 60%

Not less than 45%



Not less than 30%



Not less than 20% Not more than 40%

Not more than 40%



Not more than 40%



Not more than 40%
Nil

Not less than 15% &
Not more than 55%


Not less than 30% &
Not more than 70%


Not less than 40% &
Not more than 80% Low risk

Steady Income –Lower to Medium risk

Balanced Income and growth – Medium risk

Long term Capital growth – High risk
The policyholder must opt for any ONE of the above 4 funds to invest his premiums.

The NAV will be computed on a daily basis as under:

When Appropriation price is applied (when fund is expanding):
Market value of investment held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any new units are allocated).

When Expropriation price is applied (when fund is contracting):
Market value of investment held by the fund less the expenses incurred in the sale of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any units redeemed).

1. CHARGES AND FREQUENCY OF CHARGES
1.Premium Allocation Charge:
This is the percentage of the premium appropriated towards charges from the premium received. The balance known as allocation rate constitutes that part of the premium which is utilized to purchase (Investment) units for the policy.

The allocation charges are as below:

Single premium: 3.3%

Regular premium:
Premium Band (per annum) Allocation charge
First Year Thereafter
5,000 to 75,000 16.50% 2.50%
75,001 to 1,50,000 15.75% 2.50%
1,50,001 to 3,00,000 15.00% 2.50%
3,00,001 to 5,00,000 14.25% 2.50%
5,00,001 and above 13.50% 2.50%

Allocation charge for Top-up: 1.25%

2.Charges for optional covers:
Mortality Charge: This is the cost of life insurance cover. Mortality charge, if any, will be taken every month by canceling appropriate number of units out of the Policyholder’s Fund Value.

If opted for Life cover, charge in respect of the same, 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 the underwriting decision at entry or subsequent revival of the policy.

The rate of Mortality charge per Rs.1,000/- Sum Assured under Basic plan per annum for standard lives, are given in Annexure I. These rates are guaranteed for the term of the policy issued under this plan.

Critical Illness Benefit Charge: Charges for Critical Illness Benefit rider, if any, will be taken every month by canceling appropriate number of units out of the Policyholder’s Fund Value as per the rate prevalent at the time of policy issue.

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.

Critical Illness cover charge per Rs.1,000/- Sum Assured for standard lives, at present, are also given in Annexure I.

Accident Benefit Charge: Charges for Accident Benefit rider, if any, will be taken every month along with the Mortality charge and Critical Illness Benefit charge by canceling appropriate number of units out of the Policyholder’s Fund Value as per the rate prevalent at the time of policy issue.

A level charge, at present, is at the rate of Rs.0.50 per thousand Accident Benefit Sum Assured per policy.

Critical Illness Benefit rider and Accident Benefit rider will be allowed only if life cover is opted for. The charges for life cover and rider benefits will be made only if they are opted for.

3.Other Charges
1. Policy Administration Charge
The Policy Administration charge of Rs. 60/- per month during the first policy year and Rs. 20/- per month thereafter, throughout the term of the policy, will be deducted by canceling appropriate number of units out of Policyholder’s Fund value.

2. Fund Management Charge
Fund Management Charges (FMC) are dependent on type of Fund and are deductible on the date of computation of NAV at the following rates:
0.5% p.a. of Unit Fund for “Bond” Fund
0.6% p.a. of Unit Fund for “Secured” Fund
0.7% p.a. of Unit Fund for “Balanced” Fund
0.8% p.a. of Unit Fund for “Growth” Fund
The NAV, thus declared, will be net of FMC.

3. Switching Charges
This is a charge levied on switching of monies from one fund to another. This charge will be levied at the time of effecting switch at the rate specified under Para 9 (a) below.

4. Bid/Offer Spread
Nil.

5. Surrender Charges
Nil.

6. Service Tax Charge
A service tax charge, if any, shall be levied on the following charges
i) Policy Administration, Mortality, Accident Benefit and Critical Illness Benefit rider, if any - by canceling appropriate number of units out of the Policyholder’s Fund Value on a monthly basis as and when the corresponding Policy Administration, Mortality, Accident Benefit and Critical Illness Benefit rider charges are deducted.
ii) Premium allocation - at the time of allocation.
iii) Fund Management – at the time of deduction of Fund Management Charge.
iv) Switching - at the time of effecting switch and
v) Alteration (as provided under Miscellaneous charge) - on the date of alteration in the policy.
The level of this charge will be as per the rate of service tax as applicable from time to time. Currently, the rate of Service Tax is 12% with an educational cess at the rate of 3% thereon and hence effective rate is 12.36%.

7. Miscellaneous Charge
This is a charge levied for an alteration within the contract, such as reduction in policy term, reduction in Sum assured, change in premium mode to higher frequency, grant of Accident Benefit after the issue of the policy etc., may be allowed subject to a charge of Rs. 50/- which will be deducted by canceling appropriate number of units out of the Policyholder’s Fund value and the deduction shall be made on the date of alteration in the policy. The alteration will be effective from the policy anniversary coincident with or following the alteration.

The Corporation reserves the right to accept or decline the alteration in the policy. The alteration shall take effect from the policy anniversary coincident or following the alteration only after the same is approved by the Corporation and is specifically communicated in writing to the Life Assured.

4.Right to revise charges
The Corporation reserves the right to revise all or any of the above charges except Premium Allocation charge and mortality charge. 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 the policyholder does not agree with the revision of charges the policyholder shall have the option to withdraw the Policyholder’s fund value.

2. APPLICABILITY OF NET ASSET VALUE (NAV)
The allotment of units will be as per IRDA guidelines. The present guidelines state as under:

The premiums received up to 3 p.m. by the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which premium is received shall be applicable. The premiums received after 3 p.m. by the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable.

The outstation cheque / Demand draft shall not be accepted.

In respect of the valid applications received for surrender, death claim, switches etc up to 3 p.m. by the Servicing Branch the same day’s closing NAV shall be applicable. For the valid applications received in respect of surrender, death claim, switches etc after 3 p.m. by the Servicing Branch the closing NAV of the next business day shall be applicable

In respect of amount available on vesting, NAV of the date of vesting of annuity shall be applicable.

3. BENEFITS
1.Benefits payable on death before vesting
In case of death of the policyholder within the deferment 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 Policyholder’s Fund value as at the date of booking the liability. The liability shall be booked after receipt of intimation along with death certificate. The benefit may be got in a lump sum or in the form of pension or a combination of lump sum and pension as desired by the nominee. The pension will be based on the then prevailing immediate annuity rates under the relevant annuity option.

In case the policy is taken without life cover, then the Policyholder’s Fund value as at the date of booking the liability, as mentioned above, shall be payable to the nominee. Again, the nominee can choose either a lump sum or pension or a combination of lump sum and pension, which will be based on the then prevailing immediate annuity rates under the relevant annuity option.

If the policy is in lapsed condition, then only the Value of the units held in the Policyholder’s Fund shall become payable to the nominee. This benefit may be chosen either in lump sum or in the form of pension as desired by the nominee. The pension will be based on the then prevailing immediate annuity rates under the relevant annuity option.

2.Benefit on vesting
On the policyholder surviving up to the date of vesting, the Policyholder’s Fund value will compulsorily be utilised to provide an annuity 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. There is also an option to commute up to one-third of the Fund Value of the units held in the Policyholder’s Fund value at the time of vesting of the annuity, which shall be paid in 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 life insurance company registered with IRDA 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 Policyholder’s Fund value 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 Fund value at the vesting date shall be refunded to the Policyholder.

3. Options:
1.Life Cover
The policy can be issued either with or without life insurance cover. If life insurance cover is opted for by the policyholder, he/ she can choose Sum Assured within the following limits, subject to a minimum of Rs. 25,000.
For Single premium policies: up to and equal to the Single Premium
For Regular premium policies:
If Critical Illness Benefit Rider is opted for:
10 times of the annualized premium if age at entry is upto 40 years.
5 times of the annualized premium if age at entry is 41 years and above.
If Critical Illness Benefit Rider is not opted for:
20 times of the annualized premium if age at entry is upto 40 years.
10 times of the annualized premium if age at entry is 41 years and above.
Where the minimum Sum Assured under the basic plan is not in the multiples of Rs. 5,000, it will be rounded off to the next multiple of Rs. 5,000.

2. Accident Benefit Rider Option:
Accident Benefit (AB) 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 Fund value 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. Further, it will be available up to the life cover Sum Assured opted for, subject to an overall limit of Rs.50 lakh taking all existing policies of the Life Assured under individual as well as group schemes including policies with in-built accident benefit taken from Life Insurance Corporation of India and other insurance companies and the Accident Benefit Rider Sum Assured under the new proposal into consideration.

The Accident Benefit rider option will not be available in case life cover sum assured is zero.

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
Critical Illness Rider Benefit can be opted for only if Life cover has been opted. 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 limit for this rider will be Rs.10 lakh under all policies of the Life Assured with the Corporation taken together. The Critical Illness Rider Sum Assured shall be available only if the sum assured under the life over is equal to or greater than Rs.50,000. The Critical Illness Sum Assured shall not exceed the Sum Assured under the Basic Plan.

This benefit will be available only till the policy anniversary on which the age nearer birthday of the Policyholder is 60 years or for a maximum term of 35 years whichever is less. No charges for this benefit shall be deducted from the Policy anniversary at which the benefit ceases.

Further, this benefit will be available only once during the term of the policy (i.e. 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.

Critical Illness Benefit rider can be opted for at the inception of the policy only and shall not be allowed thereafter.

4.Annuity Options
The rate at which the claim amount will be converted into an annuity is not guaranteed and will be at the rate prevalent at that time. Further a number of annuity options will be available and the rate for different options may differ.

1. DISCONTINUANCE OF PREMIUMS:
If premiums are payable either yearly, half-yearly, quarterly or monthly (through ECS) and the same have not been paid within the days of grace under the Policy, the Policy will lapse. The policyholder will have an option to revive the policy within the specified period (described in para 16 below).

1.Where atleast 3 years’ premiums have been paid, the Life cover, Critical Illness and Accident Benefit rider, if any, shall continue during the revival period. During this period, the charges for Life Cover, Critical Illness Benefit cover and Accident Benefit cover, if any, shall be taken, in addition to other charges, by cancelling an appropriate number of units out of the Policyholder’s Fund value every month. This will continue to provide relevant risk covers for:

1. two years from the due date of first unpaid premium, or
2. till the date of vesting, or
3. till such period that the Policyholder’s Fund value reduces to one annualized premium,
whichever is earlier.

The benefits payable under the policy in different contingencies during this period shall be as under:

1. In case of Death
Life cover Sum Assured plus the Policyholder’s Fund value, if life cover is opted for. If life cover is not opted for, then only the Policyholder’s Fund value is payable.

2. In case of Death due to accident
Accident Benefit Sum Assured in addition to the amount under A above, if Accident Benefit is opted for.

3. In case of Critical Illness claim
Critical Illness Rider Sum Assured, if opted for.

4. In case of Surrender
The Policyholder’s Fund value. Surrender value, however, shall be paid only after completion of 3 policy years.

5. On vesting
The Policyholder’s Fund value.

6. Compulsory surrender
The policy shall be terminated compulsorily in following cases:
1.The balance in the Policyholder’s Fund value, at all times, shall be subject to a minimum balance of one annualized premium. In case the Policyholder’s Fund value falls below this limit, the policy shall compulsorily be terminated with a notice to the policyholder and the balance amount in the Policyholder’s Fund value will be refunded to the policyholder.
2.In case the policy is not revived during the period of revival, then the policy shall be terminated on expiry of revival period or on the date of vesting, whichever is earlier and the balance amount in the Policyholder’s Fund Value shall be refunded to the policyholder.

2.Where the policy lapses without payment of at least 3 years’ premiums, the Life Cover, Critical Illness Benefit and Accident Benefit covers, if any, shall cease and no charges for these benefits shall be deducted. However deduction of all the other charges shall continue. The benefits under such a lapsed policy shall be payable as under:

7. In case of Death:
The Policyholder’s Fund value.

8. In case of death due to accident:
The amount under G above.

9. In case of Critical Illness claim:
Nil

10. In case of Surrender:
Fund Value of units / monetary value (described in Para 7 below) of units, as the case may be, held in the Policyholder’s Fund value, shall be payable after the completion of the third policy anniversary. No amount shall be payable within 3 years from the date of commencement of policy.

11. Compulsory Surrender:
The policy shall be terminated compulsorily in following cases:
1.In case the policy is not revived during the period of revival, then the policy shall be terminated after completion of three years from the date of commencement of the policy or on expiry of revival period, whichever is later. In case the period of revival expires before the end of third policy year, then the Policyholder’s fund value shall be converted into monetary terms and no charges shall be deducted thereafter. This monetary value (described in para 7 below), shall be paid to the policyholder after the end of third policy year.
2.In case premiums are paid for less than three years, if the balance in the Policyholder’s Fund Value, at any time is not sufficient to recover the relevant charges, the policy shall compulsorily be terminated and the balance amount in the Policyholder’s Fund Value, if any, will be refunded to the policyholder.

1. SURRENDER VALUE AND SURRENDER CHARGE:
The policyholder will have an option to surrender the policy only after completion of three policy years both under Single and Regular premium contracts. The surrender value will be the Policyholder’s Fund value at the date of surrender. There will be no surrender charge.

If a policyholder applies for surrender of the policy within 3 years from the date of commencement of policy, then the Policyholder’s Fund Value of units shall be converted into monetary terms. No charges shall be made thereafter and this monetary amount shall be paid on completion of 3 years from the date of commencement of policy.

In case of death of the life assured after the date of surrender but before the completion of 3 years from the date of commencement of policy the monetary value payable on the completion of 3 years shall be payable to the nominee/ legal heir immediately on death.

The conversion in monetary amount shall be as under:
The NAV on the date of application for surrender or the date when revival period is over (in case of compulsory surrender), as the case may be, multiplied by the number of units in the policyholder’s fund value as on that date will be the monetary amount.

This monetary amount shall be transferred to Non-Unit fund and the payment when due shall be made from this fund only.

Irrespective of whether the policy is a single premium or regular premium policy or has run for less or more than three years, if the balance in the Policyholder’s Fund value, at any time is not sufficient to recover the relevant charges, the policy shall compulsorily be terminated and the balance amount in the Policyholder’s Fund value will be refunded to the policyholder.

Once a policy is surrendered it cannot be reinstated.

2. ELIGIBILITY CONDITIONS AND FEATURES:

For Basic Plan without Life Cover
a) Minimum Sum Assured
NIL.
b) Maximum Sum Assured
NIL.
c) Minimum Premium Rs. 5,000 p.a. for Regular premium (other than monthly (ECS) mode)
Rs. 1,000 p.m. for monthly (ECS) mode, increasing thereafter in multiples of Rs. 250.
Rs. 10,000 for Single premium

d) Maximum Premium No Limit

(In years)
e) Minimum Entry Age 18 last birthday
f) Maximum Entry Age 74 nearest birthday
g) Minimum Deferment Term 5 years
h) Minimum Vesting Age 40 completed
i) Maximum Vesting Age 79 nearest birthday
Annualized premiums (other than monthly (ECS)) shall be payable in multiples of Rs. 1,000.

For Basic Plan with Life Cover
a) Minimum Sum Assured Rs.25000
b) Maximum Sum Assured
Single Premium Equal to single premium
Regular Premium
If Critical Illness Benefit Rider is opted for 10 times of the annualized premium if age at entry is upto 40 years.
5 times of the annualized premium if age at entry is 41 years and above.
If Critical Illness Benefit Rider is not opted for 20 times of the annualized premium if age at entry is upto 40 years.
10 times of the annualized premium if age at entry is 41 years and above

c) Minimum Premium Rs. 5,000 p.a. for Regular premium
Rs. 25,000 for Single premium

d) Maximum Premium No Limit

(In years)
e) Minimum Entry Age 18 last birthday
f) Maximum Entry Age 65 nearest birthday
g) Minimum Deferment Term 5 years
h) Minimum Vesting Age 40 completed
i) Maximum Vesting Age 75 nearest birthday
j) Maximum life cover Ceasing Age 75 nearest birthday
Sum Assured shall be available in multiples of Rs. 5,000 and Annualized premiums shall be payable in multiples of Rs. 1,000.

For Accident Benefit
a) Minimum Sum Assured Rs. 25000

b) Maximum Sum Assured An amount equal to the Sum Assured under the Basic Plan, subject to maximum of Rs. 50 lakhs overall limit considering the Accident Benefit Sums Assured in respect of all existing policies on the life of the Life Assured under individual and group schemes including the policies with Life Insurance Corporation of India and other insurance companies and the Accident Benefit Rider Sum Assured under new proposal into consideration.
The Sum Assured shall be in multiples of Rs. 5,000.

c) Minimum/Maximum Premium No separate limit.

(In years)
d) Minimum Entry Age 18 completed
e) Maximum Entry Age 65 nearest birthday
f) Minimum Policy Term 5 years
g) Maximum Accident cover Ceasing Age 70 nearest birthday


For Critical Illness Rider Benefit
a) Minimum Sum Assured Rs. 50,000
b) Maximum Sum Assured An amount equal to the sum assured under Basic Plan subject to the maximum of Rs.10 lakh overall limit taking all critical illness riders under all existing policies of the life assured and the critical illness rider option under the new proposal into consideration.
The Sum Assured shall be available in multiples of Rs. 10,000.

c) Minimum/Maximum Premium No separate limit.
In years
d) Minimum Entry Age 18 completed
e) Maximum Entry Age 50 nearest birthday
f) Policy Term 10 to 35 years
g) Maximum Critical Illness Ceasing Age 60 nearest birthday

1. ADDITIONAL FEATURES:
1.Switching
The policyholder can switch between any fund types during the policy term. On switching the entire amount is switched to the new Fund opted for. 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 valid application for a switch from one fund type to another, Policyholder’s Fund Value after deducting switching charge, if any, shall be transferred to the New Fund type opted for by the policyholder and shall be utilized to allocate Fund Units at the NAV under the new Fund type on the said date of switch. If a valid application is received up to 3 p.m. by the servicing branch, the closing NAV of the same day shall be applicable and in respect of the applications received after 3 p.m. by the servicing branch, the closing NAV of the next business day shall be applicable.

Switching shall not be allowed under a lapsed policy.

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 yearly, half-yearly, quarterly or monthly(ECS) 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 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 be available within the limits specified in para 8. When the life cover is decreased then Accident Benefit and Critical Illness rider sum assured, if any, shall also be reduced to the extent of reduced cover under the main plan. Further, once reduction in risk cover is allowed, the same cannot be subsequently increased/ restored.

1. MODES OF PREMIUM PAYMENT
The policyholder has the choice either to pay Single Premium (in one lump sum) or Regular premium (yearly, half-yearly, quarterly or monthly (through ECS only)). The minimum Annualised 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 to a minimum of Rs. 10,000 if not opted for life cover and Rs. 25,000 if opted for life cover and thereafter in multiples of Rs. 1,000.

2. COMMISSION PAYABLE TO AGENTS/ CORPORATE AGENTS/ BROKERS & DEVELOPMENT OFFICER’S CREDIT:

Commission to Agents, Corporate Agents and Brokers:
1. For regular premium policies – 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 deposited as Top-up any time during the Policy term
4. There will be no bonus commission.

Development Officer’s credit will be as under:
1. 20% in case of Regular Premium policies
2. 5% in case of Single Premium Policies

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

However, for direct business in respect of Corporation Employees, the allocation charge will be as under:
Single premium: 1.0%
Regular premium:

Premium Band (per annum) Allocation charge
First Year Thereafter
5,000 to 75,000 4.00% Nil
75,001 to 1,50,000 3.25% Nil
1,50,001 to 3,00,000 2.50% Nil
3,00,001 to 5,00,000 1.75% Nil
5,00,001 and above 1.00% Nil

Allocation charge for Top-up: Nil

All other charges shall be as mentioned in Para 3(ii) to 3(iii).

4. LOANS
No loan shall be granted under this plan.

5. UNDERWRITING
Instructions will be issued separately by Underwriting and Reinsurance Department.

6. DAYS OF GRACE:
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 (through ECS) premiums. If the death of Life Assured occurs within the grace period but before the payment of premium then due, the policy will be treated as in-force and the benefits shall be paid after deduction of all the relevant charges, if not recovered.

If the premium is not paid before the expiry of the days of grace, the policy lapses and benefits shall be paid as per details given in para 6 under Discontinuance of premiums.


7. REVIVALS
If due premium is not paid within the days of grace, the policy lapses. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium or before vesting, whichever is earlier. The period during which the policy can be revived will be called “Period of revival” or “revival period”.

If premiums have not been paid for at least 3 years, the policy may be revived within two years from the due date of first unpaid premium. If the life cover is opted for, the revival shall be made on submission of proof of continued insurability to the satisfaction of the Corporation and the payment of all the arrears of premium without interest. If life cover is not opted for, the revival shall be made on the payment of all the arrears of premium without interest.

If at least 3 years’ premiums have been paid and subsequent premiums are not paid, the policy may be revived within two years from the due date of first unpaid premium but before the date of vesting, if earlier. No proof of continued insurability is required and all arrears of premium without interest shall be required to be paid, irrespective of whether life cover is opted for or not.

The Corporation reserves the right to accept the revival at its own terms or decline the revival of a lapsed policy. The revival of a lapsed policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Policyholder.

Irrespective of what is stated above, if less than 3 years’ premiums have been paid and the Policyholder’s Fund Value is not sufficient to recover the charges, the policy shall terminate and thereafter revival will not be entertained. If 3 years or more than 3 years premiums have been paid and the Policyholder’s Fund Value reduces to one annualized premium, the policy shall terminate and Policyholder’s Fund Value as on such date shall be refunded to the Life Assured and thereafter revival will not be allowed.

Reinstatement of surrendered policy shall not be allowed.

8. 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:

Fund Value of units in the Policyholder’s Fund value
Plus unallocated premium.
Plus Policy Administration charge deducted
Less charges @ Rs.0.20%o Sum Assured under the basic plan if life cover is opted for or @ Rs. 0.20%o of Total Premiums payable during entire term of policy, if life cover is not opted for.
Less Actual cost of medical examination and special reports, if any.

In case the policy is returned during the cooling-off period, Commission shall be recovered from the concerned Agent and the Development Officer’s credit allowed shall be withdrawn.


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

10. POLICY STAMPING:
Policy Stamping will be at the rate of Rs.0.20 per thousand Sum Assured, if life cover is opted for. 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 during entire term of the policy.

11. ASSIGNMENTS / NOMINATION:
Notice of Nomination/ 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.

12. 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, if any; medical treatment prior to death; employer’s certificate, whichever is applicable together with the proof of age, if not already admitted under the policy.

On vesting 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 on which premium has been charged under the policy, then the difference in the charges for the correct age shall be deducted with interest at such rate as determined by the Corporation from time to time.

13. REINSURANCE:
For reinsurance purposes, the retention limits will be those applicable to Term Assurance Plans and Critical Illness Benefit, if these covers are opted for.