New Bima Gold (Plan No. 179)

Introduction of LIC’s New Bima Gold (Plan No. 179)

It has been decided to introduce LIC’s New Bima Gold (Plan no.179) with effect from 4th September, 2006.

1. INTRODUCTION:

It is a plan where premiums paid over the term of plan are paid back during the policy term in instalments at specified durations in case of survival of life assured and life insurance cover is available not only during the term but also during the extended term of the plan.

2. PREMIUMS:

The policy is available for 12,16 and 20 years term. Premiums are payable regularly during the policy term with yearly, half-yearly, quarterly or monthly modes or through salary deductions.

Premium Rates are given in Annexure 1.

3. EXTENDED TERM:

The Extended Term will be half of the policy term and shall commence immediately on the expiry of the policy term. For example, for a 16 years policy term, the Extended Term will be 8 years with the result the total term will be 24 years. No premiums are payable during the Extended Term of the plan.

4. BENEFITS:

Death Benefit:
During the policy term: Payment of an amount equal to Sum Assured under the Basic Plan on death of the Life Assured during the policy term.

During the extended term: Payment of an amount equal to 50% of Sum Assured under the Basic Plan on death of the Life Assured during the extended term provided all the premiums under the policy have been paid.


Survival Benefit: In case the life assured is surviving to the end of the specified durations, the following benefits shall be payable:

For policy term 12 years : 15% of the Sum Assured under Basic Plan at the end of each 4th & 8th policy year
For policy term 16 years : 15% of the Sum Assured under Basic Plan at the end of each 4th, 8th &12th policy year
For policy term 20 years : 10% of the Sum Assured under Basic Plan at the end of each 4th, 8th, 12th & 16th policy year

On expiry of policy term: Total amount of premiums (excluding extra/optional rider premiums, if any) paid plus Loyalty Additions, if any, less the amount of survival benefits paid earlier.

5. LOYALTY ADDITIONS:
This is a with-profits Plan and the policy shall participate in the profits of the Corporation’s with-profits assurance business. The policy shall, however, be eligible to a share of profits in the form of Loyalty Addition (one time) only payable on expiry of policy term. On the Life Assured surviving the stipulated date of expiry of policy term, the policy may be eligible for payment of Loyalty Addition, if any, depending upon the experience of the Corporation at such rate and on such terms as may be declared by the Corporation.

6. OPTIONS:
Accident Benefit (AB) Rider shall be available as an optional benefit for a premium at the rate of Re.1 per thousand Accident Benefit Rider Sum Assured. Accident Benefit Rider shall be available for an amount not exceeding 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 including policies with in-built accident benefit taken with Life Insurance Corporation of India and other insurance companies and the Accident Benefit Rider Sum Assured under the new proposal into consideration.

In case the Life Assured is engaged in police duty either in any military, naval or police organisation, the rate of AB Rider shall be Rs.1.50 per thousand Accident Benefit Rider Sum Assured.

This option is available during the policy term only and not applicable during the extended term.

7 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 for a period of two years from the date of First Unpaid Premium(FUP). This period of 2 years from FUP shall be called Auto-Cover period.

During the Auto-Cover period, one or more instalments of premiums can be paid along with interest without considering continued insurability of the life assured.

8. LOAN:
Loan facility is available under this plan after the policy acquires paid-up value. The rate of interest to be charged for loan amount would be determined from time to time by the Corporation.

9. REBATES / INCENTIVES FOR MODE AND HIGH SUM ASSURED :

Rebates are available at the following rates under the plan :


Mode Rebate / Extra:
Yearly mode : 2% of tabular premium
Half-yearly mode : 1% of tabular premium
Quarterly and SSS modes : NIL
Monthly mode : 5% extra on tabular premium

High Sum Assured Rebates:
Less than Rs. 1 Lakh : NIL
Rs. 1 Lakh or more but less than Rs.2 Lakh : Rs.5 per thousand Sum Assured
Rs. 2 Lakh and above : Rs.7.5 per thousand Sum Assured

10. CEIS REBATE:
The rebate for eligible employees of the Corporation shall be @ 10% of the Tabular Premium for the basic plan provided policy is not taken through any Agent/ Corporate Agent/ Broker.

11. ELIGIBILITY CONDITIONS AND RESTRICTIONS :

FOR THE BASIC PLAN :
Minimum age at entry : 14 years (completed)
Maximum age at entry : 57 years (nearest birthday) for Term 12 years
51 years (nearest birthday) for Term 16 years
45 years (nearest birthday) for Term 20 years
Age at expiry of extended term: Maximum 75 years (nearest birthday)
Minimum Sum Assured : Rs. 50,000 /-
Maximum Sum assured : No limit
Sum Assured will be in multiples of Rs.5,000 /- only.

FOR THE ACCIDENT BENEFIT RIDER OPTION :

Minimum age at entry : 18 years (completed)
Maximum age at entry : 57 years (nearest birthday) for Term 12 years
51 years (nearest birthday) for Term 16 years
45 years (nearest birthday) for Term 20 years
Minimum Sum Assured : Rs. 50,000 /-
Sum Assured will be in multiples of Rs.5,000 /- only.

12. EXTRA PREMIUM RATES:
As enclosed in Annexure 2.

13. COMMISSION FOR AGENTS / CORPORATE AGENTS / BROKERS AND D.O. CREDIT:
Commission rates (as percentage of premium) payable to Agents, Corporate Agents during the term are as under:

1st Year 2nd & 3rd Year Renewal
15% 7.5% 5%

Bonus Commission : 40% of 1st year commission.

Commission rates (as percentage of premium) payable to Brokers during the term are as under:

1st Year Renewal
20% 5%
No Bonus Commission shall be paid to the Brokers.


Development Officer's Credit:
For term 12 years : 60%
For terms 16 and 20 years : 100%

14. UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS:
Same as for Endowment Plan.

15. PAID-UP & SURRENDER VALUES (GSV,SSV):
If after at least three 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 for an amount equal to the total premiums paid (excluding any extra/optional premium) less the survival benefits paid earlier, if any. This amount shall be called as Paid Up Value. This paid up value shall be payable on the date of expiry of the policy term or at Life Assured’s prior death. No survival benefit shall be payable under paid up policies. The policy, thereafter, shall be free from all liabilities for payment of the within mentioned premiums.

The Guaranteed Surrender Value shall be available after completion of at least three policy years and at least three full years’ premiums have been paid. The Guaranteed Surrender Value is equal to 30 per cent of the total amount of premiums paid excluding the premiums for the first policy year, all extra premiums paid, the premiums paid for Accident Benefit Rider and the amount of survival benefits paid earlier.

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

Surrender value shall not be available on Accident Benefit Rider premiums. There is no surrender value during extended term.

16. GRACE PERIOD FOR PAYMENT OF PREMIUM:
A grace period of one 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 premiums.

17. REVIVALS OR REINSTATEMENTS OF LAPSED POLICIES:
If the Policy has lapsed, it may be revived during the lifetime of the life assured, but within a period of 5 years from the due date of first unpaid premium and before the date of expiry of policy term. 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 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 at revised 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. Revival of Accident Benefit Rider shall be considered along with revival of the Basic Policy, and not in isolation.

18. 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 claim on the expiry of policy term 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.

19. 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.

20. BACK DATING INTEREST:
The policies can be dated back within the financial year, as usual. Back- dating interest will be charged at the prevailing rate at the time of completion of policy for dating back in excess of one month. The interest shall be charged even where the policy is back dated to a lean month. The policy can commence even from a date prior to the date of introduction of the plan.



21. POLICY STAMPING:
Policy stamping charges will be 20 paise per thousand Sum Assured under the Basic Plan.

22. REINSURANCE:
Normal procedure for reinsurance will apply.

23. ASSIGNMENTS / NOMINATIONS:
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 or change in nomination the Corporation does not accept any responsibility or express any opinion as to its validity or legal effect.

24. PROPOSAL FORM:
Proposal Form No. 300 or 340 shall be used for the plan.