MONEY PLUS - I (Plan No. 193)

INTRODUCTION OF LIC’S MONEY PLUS - I (Plan No. 193)


1. INTRODUCTION:
It has been decided to introduce LIC’s Money Plus - I Plan (Plan No. 193) with effect from
22nd May, 2008. The Unique Identification Number (UIN) for LIC’s Money Plus – I plan is 512L248V01.This number has to be quoted in all relevant documents furnished to the policyholders and other users (public, distribution channels).

This is a unit linked Endowment plan with regular premium paying term which offers investment-cum-insurance during the term of the policy. The policyholder can choose the level of cover within the limits, which will depend on 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 will have the option to choose any ONE of the above 4 Funds.

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

Appropriation price (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).

Expropriation price (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 are redeemed).

3. CHARGES AND FREQUENCY OF CHARGES:
i. 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:

Premium Band (per annum) Allocation charge
First year 2nd & 3rd year thereafter
5,000 to 75,000 26.50% 5.00% 2.50%
75,001 to 1,50,000 25.50% 5.00% 2.50%
1,50,001 to 3,00,000 24.00% 5.00% 2.50%
3,00,001 and above 23.00% 5.00% 2.50%





ii. Mortality Charge: This is the cost of life insurance cover. Mortality Charge will be taken every month by canceling appropriate number of units out of the Policyholder’s Fund Value.

Mortality charge, 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. The Mortality charge shall depend upon the difference between the Sum Assured under the Basic plan and Policyholder’s Fund Value of units as on the date of deduction of charge, after deduction of all other charges and shall be deducted only if, the Basic Sum Assured is more than the Fund Value of the units on the date of deduction. Further, the charges will also depend on the underwriting decision at entry or subsequent revival of the policy.

The Mortality charge per Rs.1,000/- Sum at Risk (i.e. Sum Assured under Basic plan minus Policyholder’s Fund value) per annum for standard lives, are given in Annexure I.

The Class I extra charge for Life Cover shall be 25% of the Mortality charge for standard lives. Charge for higher EMR shall be multiples of the Class I extra charge as applicable in other plans. This extra charge will be included in the Mortality charges.

iii. Charges for optional rider covers:
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. Charges for Critical Illness rider shall be deducted only if this rider has been opted for.

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 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 year and will be made for Accident Benefit cover by cancellation of appropriate number of units out of the Policyholder’s Fund Value every month along with the Mortality and Critical Illness Benefit charges. Charges for Accident Benefit rider shall be deducted only if this rider has been opted for.

iv. Other Charges:
a) POLICY ADMINISTRATION CHARGE - The Policy Administration charge of Rs. 60/- per month during the first policy year, Rs 20/- per month during the second year and thereafter, from the third year on wards till the end of the policy term Rs. 20/- per month escalating at 3% p.a. These charges will be deducted on monthly basis by canceling appropriate number of units out of Policyholder’s Fund Value.





b) 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:
0.60% p.a. of Unit Fund for “Bond” Fund
0.80% p.a. of Unit Fund for “Secured” Fund
1.00% p.a. of Unit Fund for “Balanced” Fund
1.20% p.a. of Unit Fund for “Growth” Fund
The NAV, thus declared, will be net of FMC.

c) SWITCHING CHARGE – 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 mentioned in para 10 (a) below.

d) BID/OFFER SPREAD – Nil.

e) SURRENDER CHARGES – Nil.

f) 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%.

g) 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 an alteration in the policy. The alteration shall take effect from the policy anniversary coincident with or following the alteration only after the same is approved by the Corporation and is specifically communicated in writing to the policyholder.

v. 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.




4. APPLICABILITY OF NET ASSET VALUE (NAV):
The allotment of units will be as per IRDA guidelines. The 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, partial withdrawal, death claim, switches, death after maturity (in case of settlement option exercised) 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, partial withdrawal, 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 maturity claim where no settlement option is opted for, NAV of the date of maturity shall be applicable.

5. BENEFITS:
a) Benefits payable on death:
In case of death of the policyholder when the cover is in full force, the nominee shall be eligible to get higher of Sum Assured under the Basic Plan or 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. Further, if partial withdrawal has been made during the last two years from the date of death the Sum Assured under the Basic plan shall be reduced to the extent of the amount of partial withdrawals made.

If less than 3 years’ premiums have been paid and the policy is in lapsed condition, then the Policyholder’s Fund Value shall become payable to the nominee.

In case of death of the Life Assured aged less than 12 years before commencement of risk, only the Policyholder’s Fund Value shall be payable.

The risk in case of minors aged less than or equal to 10 years commences from the policy anniversary coinciding with or immediately following the completion of 7 years of age or 2 years after the date of commencement of the policy, whichever is later. In case age at entry is above 10 years but below 12 years, the risk commences from the policy anniversary coinciding with or next following the date on which life assured completes the age 12 years. In case of minors aged 12 years or more, risk will commence immediately.

b) Benefits payable on maturity:
On the policyholder surviving the date of maturity an amount equal to the Policyholder’s Fund Value is payable.

c) Options:
i. 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 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 Sum Assured under the Basic Plan, subject to an overall limit of Rs.50 lakh taking all existing policies of the Life Assured under individual as well as group schemes taken from Life Insurance Corporation of India and other insurance companies and the Accident Benefit Rider Sum Assured under the new proposal into consideration.

If the age at entry of the Life Assured is less than 18 years, then Accident Benefit Rider can be opted for from the policy anniversary coinciding with or immediately following the completion of 18 or more years of age.

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.

ii. Critical Illness Benefit 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.10 lakh under all policies of the Life Assured with the Corporation taken together including the new proposal under consideration. The Critical Illness Rider Sum Assured shall also not exceed the Sum Assured under the Basic Plan.

If the age at entry of the Life Assured is less than 18 years, then Critical Illness Benefit Rider can be opted for from the policy anniversary coinciding with or immediately following the completion of 18 years of age.

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 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.

d) Premium Waiver Benefit (PWB):
No PWB will be allowed under this plan.

e) Settlement Option:
When the policy comes for maturity, the policyholder may exercise “Settlement Option” one month prior to the date of maturity.

In case this option is exercised, the maturity claim under the policy shall not be paid in lump sum. The policyholder, in that case, shall encash the units held in Policyholder’s Fund in regular (half-yearly / yearly instalments) spread over a period of not more than five years from the date of maturity. He/she shall be required to inform how he/she shall receive the maturity proceeds. The instalment shall be the total number of units as on the date of maturity divided by total number of instalments (i.e 5 and 10 for yearly and half-yearly instalments in 5 year period respectively). The number of units arrived at in respect of each instalment will be multiplied by the NAV as on the date of instalment payment. The first payment will be made on date of maturity and there after based on the mode opted by the policyholder i.e. every six months from the date of maturity or every year from the date of maturity.

Settlement Option shall not be allowed under a lapsed policy.

During the Settlement Option period no charges other than the Fund Management Charge shall be deducted. There shall not be any life cover during this period. The value of installment payable on the date specified shall be subject to investment risk i.e. the NAV may go up or down depending upon the performance of the fund.

On death of life assured after the commencement of Settlement Option period, the value of outstanding units held in Policyholder’s Fund shall become payable to the nominee/ legal heir in lumpsum.

No partial withdrawal or switching of fund shall be allowed after commencement of Settlement Option period.

6. DISCONTINUANCE OF PREMIUMS:
If premiums are payable 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 shall have an option to revive the policy within the specified period (described in para 17 below).

i. Where atleast 3 years’ premiums have been paid, the Life cover, Accident Benefit and Critical Illness Benefit riders, if any, shall continue during the revival period.

During this period, the charges for Mortality, Accident Benefit and / or Critical Illness 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 :
i. two years from the due date of first unpaid premium, or
ii. till the date of maturity, or
iii. till such period that the Policyholder’s Fund Value reduces to one annualized premium,
whichever is earlier.

The policyholder may opt for continuation of cover even beyond the revival period without reviving the policy and paying any further premiums. This option shall be required to be exercised atleast one month before the completion of the revival period. If this option is availed, the cover under the policy shall continue by deduction of relevant charges out of policy fund. This option shall continue till the Policyholder’s Fund Value reaches one annualized premium. No further premiums shall be allowed to be paid after the revival period is over.

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

A. In case of Death: Higher of Sum Assured under the Basic Plan or the Policyholder’s Fund value. The Sum Assured shall be subject to provisions of Partial Withdrawals made, if any as per para 10 ( d ) below.

B. 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.

C. In case of Critical Illness claim: Critical Illness Rider Sum Assured, if Critical Illness Rider is opted for.

D. On maturity: The Policyholder’s Fund Value.

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

F. In case of Partial Withdrawals: For 2 years period from the date of withdrawal, the sum assured under the basic plan shall be reduced to the extent of the amount of partial withdrawals made.

G. Compulsory surrender: The policy shall be terminated compulsorily in following cases:
a. 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.
b. In case the policy is not revived during the period of revival and the policyholder has not opted for continuing the cover after the revival period then the policy shall be terminated on expiry of revival period or on maturity, whichever is earlier and the balance amount in the Policyholder’s Fund Value will be refunded to the policyholder.

ii. Where the policy lapses without payment of at least 3 years’ premiums, the Life Cover, Accident Benefit / Critical Illness Benefit rider 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:

H. In case of Death: The Policyholder’s Fund Value.

I. In case of death due to accident: Only, the amount as under H above i.e. no additional amount.

J. In case of Critical Illness claim: Nil.

K. In case of Surrender: Policyholder’s Fund Value / monetary value of units (described in para 7 below), as the case may be, 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.

L. In case of Partial withdrawal: Partial Withdrawals shall not be allowed under such a policy even after completion of 3 years period.

M. Compulsory Surrender: The policy shall be terminated compulsorily in following cases:
a. 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, if any, shall be converted into monetary terms and no charges shall be deducted thereafter. This monetary amount (described in para 7 below), shall be paid to the policyholder after the end of third policy year.
b. 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 immediately.

7. SURRENDER VALUE AND SURRENDER CHARGE:
The surrender value, if any, is payable only after the completion of the third policy anniversary. 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 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 completion of 3 years shall be payable to the nominee/ legal heir immediately on death.

The conversion in monetary amount shall be made as under:
The NAV on the date of application for surrender or on 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 as on that date will be the monetary amount.
Further this monetary amount shall be transferred to Non-Unit fund and the payment of surrender value, as and when due, shall be made from this fund only.

In case of policy where 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 will be refunded to the policyholder. In case of a policy where premiums are paid for atleast three years, 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 shall be refunded to the Policyholder.

Once a policy is surrendered it cannot be reinstated.

8. COMMENCEMENT OF RISK UNDER THE POLICY:
“Date of Commencement of Risk” is the date from which life assurance cover shall be available under the policy.

If the age of the Life to be Assured is 12 years or more, both the date of Commencement of risk and date of Commencement of Policy shall be the date of completion of proposal.

If the age of the Life to be Assured is less than 12 years, the date of Commencement of Policy will be the date of completion of the proposal. The date of commencement of Risk shall be as per the following rules –

Risk will commence either after 2 years from the date of commencement of policy or from the policy anniversary coinciding with or immediately following the completion of 7 years of age, whichever is later in case the age at entry of the life assured is less than or equal to 10 years. Where the age at entry is more than 10 years but less than 12 years, the risk shall commence from the policy anniversary coinciding with or next following 12th birthday of the Life Assured. In case of minors aged 12 years or more risk will commence immediately.

9. ELIGIBILITY CONDITIONS AND FEATURES:
For Basic Plan
a) Minimum Sum Assured: 5 times the annualized premium
b) Maximum Sum Assured:
30 times of the annualized premium if age at entry is upto 45 years nearest birthday
20 times of the annualized premium if age at entry is 46 to 60 years nearest birthday
10 times of the annualized premium if age at entry is 61 years nearest birthday and above
c) Minimum Premium: Rs. 5,000 p.a. (other than monthly (ECS) mode)
Rs. 1,000 p.m. for monthly (ECS) mode, increasing
thereafter in multiples of Rs. 250.
d) Maximum Premium: No Limit
e) Minimum Entry Age: 0 years last birthday
f) Maximum Entry Age: 65 years nearest birthday
g) Policy Term: 5 to 30 years
h) Minimum Maturity Age: 18 years completed
i) Maximum Maturity Age: 75 years 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. Where the minimum Sum Assured is not in the multiples of Rs. 5,000, it will be rounded off to the next multiple of Rs. 5,000.

For Accident Benefit
a) Minimum Sum Assured: Rs. 25,000
b) Maximum Sum Assured: Rs. 50,00,000 taking all existing policies of the Life Assured under individual as well as group schemes taken with Life Insurance Corporation of India and other insurance companies and the Accident Benefit Rider Sum Assured under the new proposal into consideration.
Under no circumstances Accident Benefit Sum Assured shall exceed the Sum Assured under the basic Plan.
c) Minimum / Maximum Premium: No separate Limit
d) Minimum Entry Age: 18 years completed
e) Maximum Entry Age: 65 years nearest birthday
f) Policy Term: 5 to 30 years
g) Maximum Maturity Age: 70 years nearest birthday

Sum Assured shall be available in multiples of Rs. 5,000

For Critical Illness Rider Benefit
a) Minimum Sum Assured: Rs. 50,000
b) Maximum Sum Assured: Rs. 10,00,000 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.
Under no circumstances Critical Illness Rider Sum Assured shall exceed the Sum Assured under the basic Plan.
c) Minimum /Maximum Premium: No separate Limit
d) Minimum Entry Age: 18 years completed
e) Maximum Entry Age: 50 years nearest birthday
f) Policy Term: 10 to 30 years
g) Maximum Maturity Age: 60 years nearest birthday

Sum Assured shall be available in multiples of Rs. 10,000

10. ADDITIONAL FEATURES:
a) Switching: The policyholder can switch between any fund types during the policy term. On switching the entire amount is switched to the 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, the Policyholder’s Fund Value after deducting switching charges, if any, shall be transferred to the New Fund opted 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.

b) Top-up: No Top-up shall be allowed under the plan.

c) Increase / Decrease in Benefits: No increase of benefits will be allowed under the plan. The Policyholder can, however, decrease 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 9. When the life cover is decreased then Accident Benefit and Critical Illness rider sum assured 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.

d) Partial withdrawals: A Policyholder can partially withdraw the units at any time after the third policy anniversary subject to the following:

i. In case of minors, partial withdrawals shall be allowed from the policy anniversary coinciding with or next following the date on which the life assured attains majority (i.e. on or after 18th birthday).
ii. Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units.
iii. For 2 years’ period from the date of withdrawal, the Sum Assured under the Basic plan shall be reduced to the extent of the amount of partial withdrawals made.
iv. Under policies where less than 3 years’ premiums have been paid and further premiums are not paid, the partial withdrawals shall not be allowed.
v. Under policies where atleast 3 years’ premiums have been paid, partial withdrawal will be allowed subject to a minimum balance of two annualized premiums in the Policyholder’s Fund Value.

e) Option to continue the cover after the revival period: If atleast three years’ premiums have been paid under the policy, the policyholder may opt for continuation of cover even beyond the revival period without reviving the policy and paying any further premiums. This option shall be required to be exercised atleast one month before the completion of the revival period. If this option is availed, the cover under the policy shall continue by deduction of relevant charges out of policy fund. This option shall continue till the Policyholder’s Fund Value reaches one annualized premium. No further premiums shall be allowed to be paid after the revival period is over.

All the benefits under such a policy shall be as available during the revival period as mentioned under para 6(i), (Discontinuance of premium where three years premiums are paid).

11. MODES OF PREMIUM PAYMENT:
Regular premium can be paid either in yearly, half yearly, quarterly or monthly (ECS) installments. The minimum Annualised Premium (other than monthly through ECS) will be Rs. 5,000/- increasing thereafter in multiples of Rs. 1,000/-. In case of monthly (ECS) the minimum premium will be Rs. 1,000 p.m. increasing thereafter in multiples of Rs. 250/-.

There will be no mode specific charges/ rebates.

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

Commission to Agents & Corporate Agents:
• Year Commission
First 10%
2nd & 3rd 4%
Thereafter 2%
• There will be 40% bonus commission on the first year commission under the policies.

Commission to Brokers:
• Year Commission
First 16%
2nd & 3rd 4%
Thereafter 2%
• No bonus commission shall be payable to brokers.

Development Officer’s credit:
• 30% of FY premium.
13. 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:

Premium Band (per annum) Allocation charge
First year 2nd & 3rd year thereafter
5,000 to 75,000 4.50% Nil Nil
75,001 to 1,50,000 3.75% Nil Nil
1,50,001 to 3,00,000 2.50% Nil Nil
3,00,001 and above 1.75% Nil Nil

All other charges shall be as mentioned in para 3 (ii) to 3 (v).

14. LOANS:
No loan shall be granted under this plan.

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

16. 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 death benefits shall be paid after deduction of all the relevant charges, if not recovered.
If premiums are not paid within the days of grace, the policy lapses.
17. REVIVALS:
A lapsed policy can be revived during the period of two years from the due date of first unpaid premium or before maturity, 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 atleast 3 full years, the policy may be revived within two years from the due date of first unpaid premium. 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 atleast 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 maturity, if earlier. No proof of continued insurability is required and all arrears of premium without interest can be paid.

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 Proposer / Life Assured.

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 be terminated and thereafter revival will not be allowed. 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 be terminated and Policyholder’s Fund Value as on such date shall be refunded to the Life Assured and thereafter revival will not be allowed.

18. 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:





Value of units in the Policyholder’s Fund
Plus unallocated premium.
Plus Policy Administration charge deducted
Less charges @ Rs.0.20%o Sum Assured under the Basic Plan
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.

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

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

21. ASSIGNMENTS / NOMINATION:
Notice of Assignment or Nomination should be submitted for registration to the office of the Corporation, where this 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.

22. 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 maturity 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.

23. REINSURANCE:
For reinsurance purposes, the retention limits will be those applicable to Term Assurance Plans for the Sum at Risk (i.e. Sum Assured under Basic plan minus Fund value). Initially for a new policy the Sum at Risk (SAR) at Date of Commencement of Risk shall be the Sum Assured under the policy. From first anniversary onwards, the SAR shall be Sum Assured less Policyholder’s Fund Value.