Jeevan Akshay- VI (Plan No. 189)

Introduction of LIC’s Jeevan Akshay- VI (Plan No. 189)

1. Introduction :
It has been decided to withdraw the Immediate annuity Plan, LIC’s Jeevan Akshay- V (Plan No.183) with effect from 10th September, 2007 and introduce a New Plan - LIC’s Jeevan Akshay – VI in its place. The new plan will come into force with effect from 10th September, 2007.

2. Type of annuities available:
Various annuity options available under the Plan are as under:
1. Annuity for life
2. Annuity guaranteed for 5, 10, 15 or 20 years and for life thereafter
3. Annuity for life with return of purchase price on death
4. Annuity for life increasing at a simple rate of 3% p.a.
5. Annuity for life with a provision for 50% of the annuity to the spouse of the annuitant for life on death of the annuitant.
6. Annuity for life with a provision for 100% of the annuity to the spouse of the annuitant for life on death of the annuitant.

1. Modes of Annuity Payments:
Annuity can be paid in yearly, half-yearly, quarterly or monthly instalments, subject to a minimum annuity as stated below:

Mode Minimum Annuity p.a.
Monthly Rs. 6,000/-
Quarterly Rs. 4,000/-
Half-yearly Rs. 4,000/-
Yearly Rs. 3,000/-

1. Benefits:
The first instalment of annuity shall be paid one year, six months, three months or one month after the date of purchase of the annuity depending on whether the mode of annuity payment is yearly, half-yearly, quarterly or monthly respectively. Further, annuity shall be paid during the life time of the annuitant with following provisions on death of the annuitant for different options as follows:

1. Under option (i) - payment of annuity ceases.
2. Under option (ii)
i. On death during the guarantee period - annuity is paid to the nominee till the end of the guaranteed period after which the same ceases.
ii. On death after the guarantee period - payment of annuity ceases.
1. Under option (iii) - payment of annuity ceases and the purchase price is returned to the nominee.
2. Under option (iv) - payment of annuity ceases.
3. Under option (v) - payment of annuity ceases and 50% of the annuity is paid to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, nothing is payable after the death of the annuitant.
4. Under option (vi) - payment of annuity ceases and 100% of the annuity is paid to the surviving named spouse during his/her life time. If the spouse predeceases the annuitant, nothing is payable after the death of the annuitant.

The amount of annuity shall be assured throughout the period for which it is payable.

1. Annuity Rates:
Annuity rates for different types of annuities are enclosed in Annexures 1 to 9.
The policy can be purchased by payment of single premium which can be worked out by applying annuity rates for the type and mode of annuity opted by the policyholder. The annuity rates may also be used to work out the amount of annuity for a given single premium.
These rates will be applicable for the New Business introduced under the plan as well as under deferred annuity policies (where annuity rates are not guaranteed) which vest on or after 10.09.2007.

2. Rebates:

1. Incentives for high purchase price
Under the policies where purchase price is high, incentive by way of increase in the tabular annuity rate will be given to the annuitant.
Scale of absolute amount of incentive under high purchase price policies as an addition to the annuity rates per annum per rupees one thousand purchase price is as below.

Mode of Annuity Purchase price (in Rs.)
150,000 to 299,999 300,000 & 499,999 500,000 & above
Yearly 3.00 3.75 4.00
Half Yearly 2.50 3.50 3.75
Quarterly 2.50 3.50 3.75
Monthly 2.00 3.25 3.50

1. Rebate for Corporation Employees:
A Rebate of 2% of the purchase price will be available to eligible Corporation employees under CEIS.
1. Eligibility Conditions and Features:
1. Minimum Age at entry: 40 years last Birthday
2. Maximum Age at entry: 79 years last Birthday
3. Minimum Purchase Price: Rs.50,000/= or such amount which may secure a minimum annuity as (d) below.
4. Minimum Annuity Instalment: Rs. 500/= per month
Rs. 1000/= per quarter
Rs. 2000/= per half-year
Rs. 3000/= per year.

1. Commission & D.O. Credit:
Agents Commission shall be payable @ 2% of purchase price. No bonus commission shall be paid.
D.O. credit shall be @ 5% on the purchase price.
No agents commission or D.O.’s credit shall be given on vesting of deferred annuity policies.

2. Underwriting:
No medical examination is required under this plan.
Standard age proof will be required under all the annuity options except the option iii) i.e. “Annuity for life with return of purchase price on death”.

3. Policy stamping:
1. Under the annuity option ii) where certain period is 15 or 20 years, the amount of stamp duty will be based on the total annuity amount payable during the certain period i.e. the annuity per annum multiplied by 15 or 20 respectively.

2. Under the annuity option iv), the amount of stamp duty will be based on the annuity amount payable for 12 years i.e. 13.98 multiplied by the annuity per annum for first year.

3. Under all other annuity options, the amount of stamp duty will be based on the total annuity amount payable for a period of 12 years i.e. 12 multiplied by the annuity per annum.

4. 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. The amount to be refunded in case the policy is returned within the cooling-off period shall be the amount of premium deposited by the policyholder after deducting the charges for stamp duty.

5. Surrender value:
No surrender value shall be available under this plan.

1. Loan:
No loan shall be given by the Corporation to the policyholders under this plan.

1. Assignment / Nominations:
No assignment is allowed under this policy.
Notice of change of nomination should be submitted for registration to the office of the corporation, where this policy is serviced if the type of annuity opted is either for a guaranteed period and for life thereafter or with return of purchase price. In registering a nomination the Corporation does not accept any responsibility or express any opinion as to its validity or legal effect.

2. Normal requirements for claim:
For annuities in payment: The Existence Certificate is to be submitted by the annuitant once in a year before the policy anniversary and before the release of annuity cheques under all the annuity options except in the following cases:
1. Under option ii) during the guaranteed period
2. Under option iii)

On death of the annuitant: The normal documents which the claimant shall submit while lodging the claim in case of death of the Annuitant shall be the claim form, as prescribed by the corporation, accompanied with original policy document, proof of title, proof of death, whichever is applicable, to the satisfaction of the Corporation.
It will apply in case the option exercised is for:
1. Annuity option ii) and death of the annuitant takes place before expiry of the guarantee period
1. option iii) i.e. Annuity for life with return of purchase price on death of annuitant
2. option v) or vi) i.e. Annuity for life with a provision of 50% / 100% of the annuity to spouse for life on death of the annuitant
In other cases the annuity shall stop.
Further, if the age is not admitted under the policy, the proof of age of the Annuitant shall also be submitted.

3. Proposal Form/ Policy Document:
Proposal Form 440 (IA) shall be used under this plan.

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FORTUNE PLUS Plan No 187

Features: It is a unit linked assurance plan where premium payment term (PPT) is 5 years and the premium payable in the first year will be 50% of total premium payable under the policy. The level of cover will depend on the level of premium you agree to pay.

Four types of investment funds are offered. Premiums paid after allocation charge will purchase units of the Fund type chosen. The Unit Fund is subject to various charges and value of the units may increase or decrease, depending on the Net Asset Value (NAV). The plan therefore serves the purpose of insurance-cum-investment.

Payment of Premiums: You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (ECS) intervals for 5 years. The minimum First year premium will be Rs.20,000/- and you may pay any amount exceeding it. From second year onwards each year’s premium will be 25% of the first year premium.

Other Features:

i) Partial Withdrawals: You may encash the units partially 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 after18th 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 Policyholder’s Fund Value being atleast Rs. 10,000/-.

ii) Switching: You can switch between any fund types for the entire Fund Value during the policy term subject to switching charges, if any.

iii) Discontinuance of premiums: If premiums are payable either yearly, half-yearly, quarterly or monthly (ECS) and the same have not been duly paid within the days of grace under the Policy, the Policy will lapse. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium.

I) Where atleast 3 years’ premiums have been paid, the Life Cover and Accident Benefit rider, if any, shall continue during the revival period.

During this period, the charges for Mortality 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:

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 Rs. 5,000/-,
whichever is earlier.

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.

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. On Maturity: The Policyholder’s Fund Value.

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

E. 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.

II) Where the policy lapses without payment of at least 3 years’ premiums, the Life Cover and Accident Benefit rider cover, 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:

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

G. In case of death due to accident: Only, the amount as under F above.

H. In case of Surrender (including Compulsory Surrender): Policyholder’s Fund Value / monetary value 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.

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

iv) Revival: 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 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 at least 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 full 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. No proof of continued insurability shall be required but all arrears of premium without interest shall be required to 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 entertained. If 3 years’ or more than 3 years’ premiums have been paid and the Policyholder’s Fund Value reduces to Rs. 5000/-, 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.

v) Settlement Option: When the policy comes for maturity, you may exercise “Settlement Option” and may receive the policy money in instalments spread over a period of not more than five years from the date of maturity. 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.

Reinstatement: A policy once surrendered will not be reinstated.

Risks borne by the Policyholder:

i) LIC’s Fortune Plus is a Unit Linked Life Insurance product which is different from the traditional insurance products and are subject to the risk factors.

ii) The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.

iii) Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Fortune Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.

iv) Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.

v) The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

vi) All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.

Cooling off period: If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days.

Loan: No loan will be available under this plan.

Assignment: Assignment will be allowed under this plan.

Exclusions: any amount exceeding it. From second year onwards each year’s premium will be 25% of the first year premium.

In case the Life Assured commits suicide at any time within one year, the Corporation will not entertain any claim by virtue of the policy except to the extent of the Policyholder’s Fund Value on death.

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PROFIT PLUS (Plan No. 188)

INTRODUCTION OF LIC’S PROFIT PLUS (Plan No. 188)

1. INTRODUCTION:
It has been decided to introduce LIC’s Profit Plus (Plan No. 188) with effect from 23.08.2007.

This is a unit linked Endowment plan where under premium payment is either single or limited to 3, 4 or 5 years. The policyholder can choose the level of cover within the limits, which will depend on the policy term chosen, amount of premium payable and whether premium is payable one time or regularly during the premium paying term. 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
(Including Govt. Securities & Corporate Debt)
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%
100%

Not more than 85%



Not more than 70%



Not more than 60%
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 out 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 investments 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 investments 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).

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 units of the opted fund type under the policy.

The allocation charges are as below:

Single premium policies:
Premium Band
Allocation Charge
Up to 4,00,000
5.00%
4,00,001 and above
4.50%

Limited Premium Paying Term policies:

Premium Paying Term - 3 or 4 years:
Premium Band
(per annum)
Allocation charge
First year
thereafter
10,000 to 1,50,000
10.50%
2.50%
1,50,001 to 3,00,000
10.00%
2.50%
3,00,001 to 4,50,000
9.50%
2.50%
4,50,001 and above
9.00%
2.50%

Premium Paying Term - 5 years:
Premium Band
(per annum)
Allocation charge
First year
thereafter
10,000 to 1,50,000
24.00%
4.00%
1,50,001 to 3,00,000
23.50%
4.00%
3,00,001 to 4,50,000
23.00%
4.00%
4,50,001 and above
22.50%
4.00%

1.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 as under:
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 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 rate of Mortality charge per Rs.1,000/- Sum at Risk (i.e. Sum Assured under Basic plan minus Fund value) per annum for standard lives, are given in Annexure I. These rates are guaranteed for the term of the policy issued under this plan.

2.Charges for optional rider cover:

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.

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 on monthly basis by canceling appropriate number of units out of Policyholder’s Fund Value.

1. 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:
0.75% p.a. of Unit Fund for “Bond” Fund
1.00% p.a. of Unit Fund for “Secured” Fund
1.25% p.a. of Unit Fund for “Balanced” Fund
1.50% p.a. of Unit Fund for “Growth” Fund
The NAV, thus declared, will be net of FMC.

2. SWITCHING CHARGES – This is a charge levied on switching of monies from one fund type to another. This charge will be levied at the time of effecting such switch at the rate mentioned in para 10 (a) below.

1. BID/OFFER SPREAD – Nil.

2. SURRENDER CHARGES – Nil.

3. SERVICE TAX CHARGE – A service tax charge shall be levied on the charges for Mortality, Accident Benefit and Critical Illness Benefit rider, if any, and shall be taken by cancelling appropriate number of units out of the Policyholder’s Fund Value on a monthly basis as and when the corresponding Mortality, Accident Benefit and Critical Illness Benefit rider charges are deducted. The level of this charge will be as per the rate of service tax on risk premium 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%.

4. MISCELLANEOUS CHARGE – This is a charge levied for an alteration within the contract, such as reduction in policy term, change in premium mode to higher frequency within the premium paying term decided in the beginning of the contract, 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.

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.

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, partial withdrawal, 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, 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.

3. BENEFITS:
1. 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 Value of units held in the Policyholder’s Fund 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 Value of units held in the Policyholder’s Fund shall become payable to the nominee.

In case of death of the Life Assured aged less than 12 years before commencement of risk, only Value of the units held in the Policyholder’s Fund 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.

2. Benefits payable on maturity:
On the policyholder surviving the date of maturity an amount equal to the Value of the units held in the Policyholder’s Fund is payable.

3. Options:
1. 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.
1.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.5 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.

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

2. 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 thereafter 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 lump sum.

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

1. DISCONTINUANCE OF PREMIUMS:
If premiums are payable yearly, half-yearly, quarterly or monthly (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).

1.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 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 maturity, or
3. till such period that the Policyholder’s Fund Value reduces to Rs. 5000/-,
whichever is earlier.

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

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

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 Critical Illness Rider is opted for.

4. On maturity: Value of units held in the Policyholder’s Fund.

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

6. 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.

7. Compulsory surrender: The policy shall be terminated compulsorily in following cases:
1. The balance in the Policyholder’s Fund, at all times, shall be subject to a minimum balance of Rs. 5,000/-. 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 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 maturity, whichever is earlier and the balance amount in the Policyholder’s Fund will be refunded to the policyholder.

2.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:

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

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

3. In case of Critical Illness claim: Nil.

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

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

6. 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 revival period 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.
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 immediately as the amount will be negligible.

1. SURRENDER VALUE AND SURRENDER CHARGE:
The surrender value, if any, is payable only after 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/ Life Assured 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 the completion of 3 years shall become 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 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.
Further this monetary amount shall be transferred to Non-Unit fund and the payment of surrender value when due shall be from this fund only.

In case of Single premium policy or Regular premium 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 will be refunded to the policyholder immediately as the amount will be negligible. In case of Regular premium 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 Rs.5000. 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, if any, shall be refunded to the Policyholder.

Once a policy is surrendered it cannot be reinstated.

2. 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.

3. ELIGIBILITY CONDITIONS AND FEATURES:
For Basic Plan
a) Minimum Sum Assured:
Regular Premium - Higher of 5 times the annualized premium or half of the policy term times the annualized premium
Single Premium - 1.25 times the single premium
b) Maximum Sum Assured:
Regular Premium - Higher of 5 times the annualized premium or half of the policy term times the annualized premium
Single Premium -
If Critical Illness Benefit Rider is opted for:
5 times the Single premium if age at maturity is 55 years or less.
3 times the Single premium if age at maturity is 56 years or more.
If Critical Illness Benefit Rider is not opted for:
5 times the Single premium if age at maturity is 65 years or less.
3 times the Single premium if age at maturity is 66 to 70 years.
2.5 times the Single premium if age at maturity is 71 years and above.

The Sum Assured shall be available in multiples of Rs. 5,000/-. 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 and the maximum sum assured condition shall be relaxed to this extent.

c) Minimum Premium : Rs. 10,000 p.a. for Limited premium Paying Term policies.
Rs. 20,000 for Single premium
d) Maximum Premium: No Limit
e) Premium Paying Term: {3 to 5} years or Single premium
f) Minimum Entry Age: 0 years last birthday
g) Maximum Entry Age: 65 years nearest birthday
h) Policy Term: 5 to 20 years
i) Minimum Maturity Age: 18 years completed
j) Maximum Maturity Age: For PPT 3 years : 70 years nearest birthday
For Single Premium, PPT 4 or 5 years : 75 years nearest birthday

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 20 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. 5,00,000 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 20 years
g) Maximum Maturity Age: 60 years nearest birthday

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

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 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.

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

3. Increase / Decrease in Benefits: No increase or decrease in benefit will be allowed under the plan.

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

1. 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).
2. Partial withdrawals may be either in the form of fixed amount or in the form of fixed number of units.
3. 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.
4.Under Limited Premium Paying Term policies where less than 3 years’ premiums have been paid and further premiums are not paid, the partial withdrawals shall not be allowed.
5.Under Limited Premium Paying Term policies where atleast 3 years’ premiums have been paid, partial withdrawal will be allowed subject to Policyholder’s Fund Value being at least Rs. 10000/-.
6.Under Single Premium policies, the partial withdrawal will be allowed subject to a minimum balance of Rs. 5000/- in the Policyholder’s Fund Value.

2. MODES OF PREMIUM PAYMENT:
Regular premium can be paid during a limited premium paying term of 3, 4 or 5 years either in yearly, half yearly, quarterly or monthly (ECS) installments. The minimum annual premium will be Rs. 10,000/- .
There will be no mode specific charges or rebates.
Single premium can be paid subject to a minimum of Rs. 20,000.

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

Commission to Agents & Corporate Agents:
1. For premium paying term of 3 or 4 years – 4% of the premium in the 1st year, and 2% of the premium for subsequent years.
2. For premium paying term of 5 years – 10% of the premium in the 1st year and 3% of the premium thereafter.
For single premium policies – 2% of the premium.
There will be 40% bonus commission on the first year commission under regular premium policies. No bonus commission will be payable on single premium policies.

Commission to Brokers:
5. For premium paying term of 3 or 4 years – 6.0% of the premium in the 1st year, and 2% of the premium for subsequent years.
6. For premium paying term of 5 years – 15% of the premium in the 1st year and 3% of the premium for thereafter.
7. For single premium policies – 2% of the premium.
8. No bonus commission shall be payable to brokers.

Development Officer’s credit:
9. For single premium and premium paying term of 3 or 4 years – 5% of first premium.
10. For premium paying term of 5 years – 30% of first premium.

4. 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 policies:
Premium Band
Allocation Charge
Up to 4,00,000
2.00%
4,00,001 and above
1.50%

Limited Premium Paying Term policies:

Premium Band
(per annum)
Allocation charge
First year
thereafter
10,000 to 1,50,000
3.25%
nil
1,50,001 to 3,00,000
2.75%
nil
3,00,001 to 4,50,000
2.25%
nil
4,50,001 and above
1.75%
nil
All other charges shall be as mentioned in para 3 (ii) to 3 (v).

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

6. UNDERWRITING:
Underwriting rules will be as applicable to endowment plan.

Sum under consideration (SUC) will be calculated as per the existing rules and for the purpose of calculating SUC under this plan, Sum Assured under the basic plan less the amount of First premium paid shall be considered.

For financial underwriting the critical illness rider SA, if opted for, need not be added.

In case of Minor lives, plan will be allowed to standard lives only. The existing rules regarding maximum sum assured allowed to minor lives for all policies taken together will apply.

For minor lives, Special Reports will be called for as per the chart given in Circular No. 2090/4 dated 1st November 2006. For Major lives, Special Reports will be as per the existing chart of Special Reports. Cost of Medical Examination will be borne by the Corporation subject to a limit of Rs. 4 per thousand Sum Assured under the basic plan.

Current rules regarding Moral Hazard Report and introduction of Proposer etc. shall be applicable to this plan also.

This plan can be allowed under Non-medical (Special) and non-medical (General) subject to Rules, if Critical Illness Rider is not opted for. The overall limit, under Non-medical (General) and Non-medical (Special), various Non-Standard age proofs and Female Category II & III will apply.

If the life assured is engaged in police duty in any military, naval or police organization and has opted for accident benefit cover covering accidental risk while engaged in police duty, then additional charge as per the existing rules shall be made.

The Class I Extra charge for Life Cover shall be 25% of the Mortality charge for Standard lives. Charges 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.

The standard extra to be charged in the case of Occupation shall be at the rates applicable to Endowment Assurance plan.

Mortality charge will include – health extra for sub-standard lives, standard extra for occupation, residence, etc. and age proof extra for NSAP-2 and NSAP-3.

The Critical Illness Rider Benefit will be available to standard lives only. Other terms and conditions for underwriting in case of Critical Illness Rider shall also apply.

7. 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 will be allowed if premiums are payable monthly (ECS). If the death of Life Assured occurs within the grace period but before the payment of premium then due, the policy will be treated 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.
8. REVIVALS:
A lapsed policy can be revived during the period of two years from the due date of first unpaid premium or before date of 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 entertained. The balance amount in the Policyholder’s Fund Value, if any, will be refunded to the policyholder immediately as the amount will be negligible. If 3 years or more than 3 years’ premiums have been paid and the Policyholder’s Fund Value reduces to Rs. 5000/-, 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.

Revival of surrendered policy will not be allowed.

9. 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 / Broker and the Development Officer’s credit allowed shall be withdrawn.

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

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

12. 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.

13. 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.

14. REINSURANCE:
For reinsurance purpose, 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 Fund Value.

15. ACCOUNTING OF INCOME AND OUTGO
Instructions regarding the accounting procedure to be followed under the plan shall be issued separately by Finance & Accounts Department, Central office.

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Jeevan Amrit (Plan No. 186)

Introduction of LIC’s Jeevan Amrit (Plan No. 186)

It has been decided to introduce LIC’s Jeevan Amrit Plan (Table no.186) with effect from 28th May, 2007.

1. INTRODUCTION:
It is a plan where the premium payment is limited to 3 or 4 or 5 years and the premium payable during the first year is higher than the premiums payable in subsequent years.

2. PREMIUMS:
The policy is available for terms 10 to 30 years. Premiums may be paid yearly or half-yearly during the premium paying term of 3 or 4 or 5 years.

3. BENEFITS:

Death Benefit: An amount equal to Sum Assured along with vested Simple Reversionary Bonuses and Final (Additional) Bonus (if any) is payable in lump sum immediately on death of the Life Assured during the term of the policy.

Maturity Benefit: Payment of total amount of premiums (excluding extra premiums, if any) paid along with vested Reversionary Bonuses and Final (Additional) Bonus, if any, in case of Life Assured surviving to the end of the term.

4. PARTICIPATION IN PROFITS OF THE CORPORATION:
Depending upon the Corporation’s experience with regard to policies issued under this plan, this policy will be eligible for Simple Reversionary Bonus at such rate and on such terms as may be declared by the Corporation.

The Simple Reversionary Bonuses shall be declared annually at the end of each financial year at the rate per thousand total amount of premiums paid (excluding any extra premium) as on the date of valuation. Paid-up policies (whether partially or fully paid-up) shall also participate in the profits of the Corporation.

Final (Additional) Bonus may also be declared under the policy which will be payable on the expiry of policy term or on earlier death provided the policy has run for certain minimum term.
Final (Additional) Bonus shall not be payable under partially paid-up policies.


5. ELIGIBILITY CONDITIONS AND RESTRICTIONS:

(a) Minimum Entry Age : 12 years (last birthday)
(b) Maximum Entry Age : 60 years (nearest birthday)
(c) Maximum Maturity Age : 70 years (nearest birthday)
(d) Minimum Sum Assured : Rs. 1,00,000
(e) Maximum Sum Assured : No limit
(f) Premium Paying term : 3 to 5 years
(g) Policy term : 10 to 30 years

6. REBATES / INCENTIVES FOR MODE AND HIGH SUM ASSURED :
Rebates are available at the following rates under the plan :

Mode Rebate:
Yearly mode - 2% of Tabular Premium
Half-yearly mode - Nil

7. CEIS REBATE:
The rebate for eligible employees of the Corporation shall be @ 5% of the Tabular Premium provided policy is not taken through any Agent/ Corporate Agent/ Broker.

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

Premium paying term 1st Year 2nd & 3rd Year Subsequent Years
3 years 4.0% 2.25% ----
4 years 4.0% 2.25% 2.25% 5 years 7.5% 5.00% 5.00%

Bonus Commission: 40% of 1st year commission.

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

Premium paying term 1st Year 2nd & 3rd Year Subsequent Years
3 years 5.5% 2.25% ----
4 years 5.5% 2.25% 2.25% 5 years 10.0% 5.00% 5.00%

No Bonus Commission shall be paid to the Brokers.

Development Officer's Credit:
For premium paying term 3 & 4 years: 5% of first year premium
For premium paying term 5 years : 15% of first year premium.

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

10. 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 premiums. If death of the life assured occurs within the grace period but before the payment of premium then due, the policy will still be valid and the benefits allowed after deduction of the said unpaid premium as also the unpaid premium/s falling due before the next anniversary of the policy.

11. PAID-UP & SURRENDER VALUES (GSV,SSV):
If at least one full year’s premiums have been paid and any subsequent premium be not duly paid, this Policy shall not be wholly void, but the Sum Assured shall be reduced to such a sum, called the Paid-up Sum Assured, and will be equal to the total amount of premiums paid (excluding any extra premium). The policy so reduced shall thereafter be free from all liabilities for payment of the within mentioned premium, but shall participate in the future profits of the Corporation declared in the form of simple reversionary bonuses payable at the rate of per thousand total amount of premiums paid (excluding any extra premium). The existing vested reversionary bonuses, if any, shall also remain attached to the reduced paid-up policy.
In the event of death of Life Assured during the policy term, the reduced Paid-up Sum Assured as defined above, along with vested reversionary bonuses, if any, shall be payable. Provided the Life Assured is then alive, the vested bonuses and the reduced Paid-up Sum Assured as defined above shall be payable at the end of the policy term.
If after at least one full year’s premiums have been paid in respect of this policy any subsequent premium be not duly paid, in the event of death of the Life Assured within six months from the due date of first unpaid premium, the benefits will be paid as if the Policy had remained in full force after deduction of (a) the premium or premiums unpaid with interest thereon until the date of death, and (b) the unpaid premiums falling due before the next Policy anniversary.

The Guaranteed Surrender Value shall be available after completion of at least one policy year provided premiums for one full year have been paid. The Guaranteed Surrender Value is equal to 30% of the total amount of premiums paid excluding extra premiums, if any.

The cash value of any existing vested bonuses, if any, will also be paid.

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

12. 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, it may be revived during the lifetime of the life assured, but within a period of 5 years from the date of first unpaid premium and before the date of maturity, as the case may be, 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 the payment. The Corporation reserves the right to accept or decline the revival of a discontinued policy. The revival of a discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the life assured.

13. 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.

14. 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.

15. 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.

16. 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.

17. 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.

18. POLICY STAMPING:
Policy stamping charges will be 20 paise per thousand of Death Benefit Sum Assured.

19. REINSURANCE:
Normal procedure for reinsurance will apply.

20. 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.





21. PREMIUM RATES: Premium Rates per Rs. 1000/- Sum Assured and Class-I extra premium rates are given in Annexure I & II respectively.

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

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Jeevan Tarang Plan (Table No. 178) – Certain Modifications

LIC’s Jeevan Tarang Plan (Table No. 178) – Certain Modifications

1. Introduction:

1.1 LIC’s Jeevan Tarang Plan (Plan No. 178) was introduced w.e.f 17th March 2006 vide circular Ref:Actl/PD/2058/4 dated 7th March 2006. Premium under the policy is payable either in lump sum or at regular intervals during the accumulation period with yearly, half-yearly, quarterly, monthly or through salary deductions. Further the plan provides for Accident Benefit Rider, Critical Illness Rider and Term Assurance Rider as optional benefits.

1.2 We have been receiving requests from various sources for certain modifications under this plan. In view of this, it has been decided to allow the following under the plan:

- Premium paying term of 6 years.
- Premium Waiver Benefit Rider for minor lives.

2. Premium Paying Term of 6 years:

2.1 It has been decided to allow a premium paying term of 6 years for all accumulation periods i.e. 10, 15 and 20 years under this plan.

2.2 The Optional riders i.e. Accident Benefit Rider, Critical Illness Rider and Term Assurance Rider shall be allowed only at the proposal stage and shall be available during the accumulation period only. All terms and conditions applicable for these riders shall also apply.

2.3 CEIS Rebate:
An employee of the Corporation shall be eligible for a rebate in tabular premium under Corporation’s Employee Insurance Scheme (CEIS) at 5% of Premium for all Accumulation Periods.

2.4 Commission rates (as percentage of premium) payable to Agents, Corporate Agents and Brokers during the premium paying term of 6 years are as under:

Premium paying term 1st Year 2nd & 3rd Year Subsequent Years
6 years 10% 5% 5%

Bonus Commission: 40% of 1st year commission.

No Bonus commission is payable to brokers.

2.5 Development Officer’s credit, for 6 years premium paying term policies, will be 30% of first year premium.

2.6 For the six year premium paying term, the tabular premium rates for the basic plan and Accident Benefit Rider are given in Annexure I and for Term Assurance Rider in Annexure II. Premium Rates for Critical Illness Rider and PWB option under Critical Insurance Rider are given in Annexure III.

2.7 Class - I extra rates for the basic plan and Class – I extra for Term Assurance Rider for six year premium paying term are enclosed as Annexure IV.

3. Premium Waiver Benefit (PWB) Rider for minor lives:

3.1 Premium Waiver Benefit under this plan shall be available as an optional rider where a proposal is received on a minor life.

3.2 Eligibility conditions for children and proposer:

For Child:
(a) Minimum Entry Age : 0 years (Last birthday)
(b) Maximum Entry Age : 17 years (Nearer birthday)
(c) Maximum Sum Assured : Rs. 1,00,00,000/-

For Proposer
(a) Minimum Entry Age : 18 years (completed)
(b) Maximum Entry Age : 55 years (Nearer birthday)
(c) Maximum Age at the end of premium paying term: 70 years (Nearer birthday)

3.3 Other terms and conditions: The proposer can avail the premium waiver benefit, on the payment of an additional premium for this rider during the premium paying term or till death of the proposer, whichever occurs earlier.
On availing this benefit:
1. The payment of premiums, for the Basic Plan only, falling due after the date of death of the proposer shall be waived;
2. The Premium Waiver Benefit as stated in (a) shall be granted on the basis of satisfactory, personal declaration of health and other requirements;
3. The Premium Waiver Benefit described in (a) shall not operate in the event of the death of the proposer by his own hands, whether sane or insane, within one year from the date of issuance of First Premium Receipt;
4. The additional premium for the rider shall not be taken into account in arriving at the amount to be refunded in the event of death of the life assured before the date of commencement of risk and in calculating the surrender value of the policy;
5. Premium waiver benefit shall cease to apply if the policy is in lapsed / paid-up condition.

3.4 Commission Rates and D.O. credit: Commission rates (as percentage of premium) payable to Agents, Corporate Agents, Brokers and Incentive to Development Officer’s will be at the same rate as those payable under the Basic plan.

3.5 A table of premium rates and extra premium rates for Premium Waiver Benefit is enclosed as Annexure V.

3.6 An endorsement to be attached along with the policy bond of LIC’s Jeevan Tarang plan, if PWB is opted for, is enclosed as Annexure VI.

3.7 Underwriting, Age proof and Medical Requirements: Sum Under Consideration (SUC) will be calculated as per the existing rules on the life of the proposer. The actual SA for PWB will be the sum of all the future outstanding premiums (future instalment premiums excluding first premium) under the basic plan.

3.7.1 Special reports will be called for as per the existing chart of special reports. The cost of all medical and special reports shall be borne by the proposer.

3.7.2 PWB on the life of parent (females under Category I & II and males) is allowed under non-medical (special) scheme and non-medical (general) scheme to professionals.

3.7.3 This benefit can be granted to standard, sub-standard and physically handicapped lives subject to normal underwriting requirements.

3.7.4 Only standard age proof will be accepted.

3.8 Revival: If a lapsed policy is revived during the premium paying term where PWB rider has been opted for, in addition to the conditions under the para "Revival or reinstatement of lapsed policy" of the introductory circular Ref:Actl/PD/2058/4 dated 7th March 2006, evidence of health and habits of the proposer (including a medical and other reports on his life at his own expense from the Corporation's appointed Medical Examiner, wherever required by the Corporation) to the satisfaction of the Corporation shall be required for revival of this Rider.

3.9 Allowing PWB Rider as an alteration: As PWB rider is being offered now as a modification to the plan, some policies on minor lives have been issued without Premium Waiver Benefit. There may be requests from those policyholders to allow them this optional Benefit. It has, therefore been decided to allow this Rider on policies of minor lives as an alteration subject to underwriting and other conditions mentioned in para 3.2, 3.3 and 3.7 to 3.7.4 above being satisfied. This will be subject to following conditions:

1. Alteration fees of Rs.50/- will be charged.
2. Alteration will take effect from the policy anniversary coinciding with or the next policy anniversary following the receipt of application alongwith the necessary premium.
3. The age applicable for calculation of premium will be age nearer birthday and term applicable will be the outstanding premium paying term on the effective date of alteration i.e. on the policy anniversary coinciding with or the next policy anniversary following the date of receipt of application. SUC will be the sum of all the future outstanding premiums (i.e. future instalment premiums excluding the instalment on policy anniversary on which alteration is being effected).

4. All other terms and conditions of the plan shall remain unaltered.
5. These modifications will come into force with immediate effect.

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CHILD FUTURE PLAN – WITH PROFITS (PLAN No. 185)

INTRODUCTION OF LIC’s CHILD FUTURE PLAN – WITH PROFITS (PLAN No. 185)

It has been decided to introduce a new with profits plan for children, LIC’s Child Future Plan (Plan No. 185) w.e.f 8th February 2007. Its details are as under:

1. Introduction :
This plan is designed to meet the increasing educational, marriage and other needs of growing children which provides the risk cover on the life of child not only during the policy term but also during the extended term (i.e. 7 years after the expiry of policy term). On surviving to the end of the specified durations, a number of Survival benefits are also payable.

2. Premiums :
The policy is available for terms 11 to 27 years. Premiums are payable regularly during the policy term with yearly, half-yearly, quarterly or through salary deductions. Premiums may be paid either for 6 years or upto 5 years before the policy term.

The premium rates and extra premium rates are given in Annexure 1 and 2 respectively.

3. Extended Term:
The Extended term will be 7 years from the date of expiry of policy term. No premiums are payable during the Extended term of plan.

4. Benefits :
a) Survival Benefit :
On life assured surviving to the end of the specified durations an amount as specified below is payable:
5 years before the date of expiry of policy term - 25% of the Sum Assured
4 years before the date of expiry of policy term - 10% of the Sum Assured
3 years before the date of expiry of policy term - 10% of the Sum Assured
2 years before the date of expiry of policy term - 10% of the Sum Assured
1 years before the date of expiry of policy term - 10% of the Sum Assured
On the date of expiry of policy term - 50% of the Sum Assured along with vested Simple Reversionary Bonuses and Final (Additional) Bonus, if any.

b) Death Benefit :
On death after the Date of Commencement of Risk but before the date of expiry of policy term -Sum Assured along with Vested Simple Reversionary Bonuses and Final (Additional) bonus (if any) is payable.

On death during the Extended Term - Sum Assured is payable.

On death before the Date of Commencement of Risk - All the premiums paid (excluding premium for extra and premium waiver benefit, if any,) along with interest of 3% p.a compounding yearly shall be payable.

5.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 Sum Assured annually at the end of each financial year provided the policy is in full force. Once declared, they form part of the guaranteed benefits of the plan. Simple Reversionary Bonuses will be added from the date of commencement of policy until the selected policy term or till death, if it occurs earlier, provided the policy is in full force. In case of a paid up policy vested bonuses shall be payable only if at least 3 full years’ premiums have been paid.

Not withstanding what is stated above, no bonus shall vest under the policy when the risk is not covered. However, the Simple Reversionary Bonuses for the period before the Commencement of Risk will vest on the policy anniversary from which the risk is covered provided the policy is in full force and 3 full years premiums have been paid under the policy.

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.

Final (Additional) Bonus may also be declared under the policy which shall be payable on expiry of the policy term, or on earlier death.

Once the bonus or their cash value is paid, no further bonus shall accrue under the policy.

6.Auto Cover :
If after at least two full year’s premiums have been paid, and any subsequent premium be not duly paid, full death cover shall continue for a period of two years from the due date of the First Unpaid Premium (FUP). This period of 2 years from FUP shall be called Auto Cover Period. During this Auto Cover Period, the Proposer/ Life Assured can pay one or more instalments premiums with interest without submission of evidence of health. On payment of one or more of the arrears of instalment premiums with interest, the Auto Cover Period of 2 years shall be extended from the due date of new FUP.

If death of Life Assured 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 alongwith the vested bonus, if any.

Premium Waiver Benefit, if any, shall remain inforce during the Auto Cover period.

7.Premium Waiver Benefit :
The proposer can avail the premium waiver benefit, on the payment of an additional premium during the premium paying term or till death of the proposer, whichever occurs earlier.
On availing this benefit:
(a) The payment of the premiums falling due after the date of death of the proposer shall be waived;
(b) The Premium Waiver Benefit shall remain in force during the Auto cover period. Any premiums that have fallen due and not paid during the Auto Cover period shall also be waived.
(c) The Premium Waiver Benefit as stated in (a) shall be granted on the basis of the proposer's age, personal declaration of health and other requirements. In case it is found that any untrue or incorrect statement is contained therein or any material information is withheld, all claim to the benefit shall cease and determine;
(d) The Premium Waiver Benefit described in (a) and (b) shall not operate in the event of the death of the proposer by his own hands, whether sane or insane within one year from the date of issuance of First Premium Receipt;

The premium rates and extra premium rates for Premium waiver Benefit are given in Annexure 3 & 4 respectively.

8. Proposer :
The proposer can be child’s father or mother who has income of her own i.e. female category I and II. If both parents are not alive, then legal guardian can propose under the plan.
The grand parents can propose even if the parents are alive provided the consent of parent is obtained. Existing rules of parent’s income eligibility and total insurance in force on their lives for deciding maximum sum assured allowable are to be adhered to strictly.

9. Eligibility Conditions and Restrictions :
For Life Assured
(a) Minimum Entry Age : 0 years (last birthday)
(b) Maximum Entry Age : 12 years (last birthday)
(c) Minimum Maturity Age : 23 years (last birthday)
(d) Maximum Maturity Age : 27 years (last birthday)
(e) Minimum Sum Assured : Rs. 1,00,000
(f) Maximum Sum Assured : Rs. 100 ,00,000
(g) Policy term : 11 to 27 years
(h) Premium Paying term : 6 years and Policy term less 5 years

Sum Assured shall be in multiples of Rs. 5000.

For Proposer (if PWB is opted for)
(a) Minimum Entry Age : 18 years (completed)
(b) Maximum Entry Age : 55 years (Nearer birthday)
(c) Maximum Age at the end of premium paying term: 70 years (Nearer birthday)



10. Special Features :
a) Date of commencement of risk : In case the age of Life Assured at entry is less than or equal to 10 years, risk under this plan shall commence either after 2 years from the date commencement of the policy or from the policy anniversary coinciding with or immediately following the completion of 5 years of age of Life assured, whichever is later. 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. For those aged 12 years or more risk will commence immediately.

b) Date of Vesting: The policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall, on such vesting, be deemed to be a contract between the Corporation and the Life Assured.

11. Rebates :
Mode Rebate:
Yearly mode - 2% of Tabular Premium
Half-yearly mode - 1% of the tabular premium
Quarterly - NIL

Sum Assured Rebate:
Sum Assured Rebate (Rs.)
1,00,000 to 2,99,999 Nil
3,00,000 to 4,99,999 1.5 %o S.A.
5,00,000 and above 2 %o S.A.

12. Commission rates and credit for Development Officers :
a) Commission rates (as percentage of premium) payable to Agents and Corporate Agents during the premium paying term (ppt) are as under :

Commission Scales :


>=15 yrs
10-14 yrs
6-9 yrs
first yr
25%
20%
10%
2nd & 3rd year
7.5%
7.5%
5%
subsequent
5%
5%
5%

Bonus Commission 40% of first year commission .

b) Commission rates (as percentage of premium) payable to Brokers :

Commission Scales :


>=15 yrs
10-14 yrs
6-9 yrs
first yr
30%
25%
10%
2nd & 3rd year
5%
5%
5%
subsequent
5%
5%
5%

No bonus commission is payable to brokers.



c) Development Officer’s Credit:
Premium paying term Credit as % of First Year’s Premium
6 - 9 years 30%
10 - 14 years 60%
15 years & above 100%

13. Underwriting, Age proof and Medical Requirements :
For sum assured under basic plan:

SUC will be calculated as per the existing rules. The actual SA for this plan will be the sum assured under the basic plan.

Special reports will be called for as per the chart given in circular Ref: Actuarial/2090/4 dated 1st November 2006.

Plan will be allowed to standard children and sub-standard children attracting EMR up to Class III for overweight only.

Age proof:
For children aged 5 years and above - a certified extract from the school records. For children aged less than 5 years - a certified extract from Municipal / local village panchyat records made at the time of birth.

Financial underwriting:
Based on parent’s income eligibility (their income should be adequate for both insurance on their own lives and on the lives of their children).

Matching insurance:
Insurance on the lives of parents will not be insisted
- up to Rs. 2 lacs if PWB is not opted for
- up to Rs. 5 lacs if PWB is opted for and allowed

For PWB:
SUC will be calculated as per the existing rules on the life of the proposer. The actual SA for PWB will be the future outstanding premiums (future instalment premiums excluding first premium) under the basic plan.

Special repots will be called for as per the existing chart of special reports. PWB on the lives of parents (males and females falling under Female Category I & II ) is allowed under non-medical (special) scheme and non-medical (general) scheme to professionals
In case of pregnant ladies PWB cover will not be allowed.
PWB will be allowed to standard and sub-standard (including physically handicapped ) proposers.
Only standard age proof will be accepted.

14. Paid-up value :
If at least three full years’ premiums have been paid, any subsequent premiums be not duly paid, this policy shall not be wholly void but shall become paid-up.

If policy becomes paid-up before the Commencement of Risk, then the policy shall be entitled to receive the Guaranteed Surrender Value. If the policy is not surrendered, this Guaranteed Surrender Value shall be payable on the expiry of policy term or on death of Life Assured, if earlier.


If policy becomes paid-up after Commencement of Risk, then the sum assured of policy shall be reduced to such a sum, called paid-up value, as shall bear the same proportion to the full Sum Assured as the number of premiums actually paid bears to the total number of premiums stipulated for in the policy.

The Policy so reduced shall thereafter be free from all liabilities from payment of the within mentioned premiums, but shall not be entitled to participate in future profits from the date of discontinuance of premiums. The existing vested bonuses, if any, shall remain attached to the reduced paid- up policy.

In the case of a reduced paid-up policy, no survival benefits shall be payable and the paid-up value along with the vested bonuses, if any, shall be payable only in lump-sum on the expiry of policy term or death of Life Assured, if earlier.

If the policy is in lapsed/ paid-up condition, Premium Waiver Benefit shall cease to apply after the Auto cover period, if any, is over.

Also, Extended Term Cover shall cease to apply if the policy is in lapsed/ paid-up condition.

15. Lapse:
If less than 2 years premiums have been paid and the policy lapses then on death or at expiry of policy term nothing shall be payable.
If more than 2 but less than 3 years premiums have been paid and the policy lapses then
- If death occurs during the Auto Cover period, then death benefit as described in Auto Cover shall be payable.
- If death occurs after the auto Cover period, then nothing shall be payable.
- On expiry of policy term nothing shall be payable.

16. Guaranteed Surrender Value :
The policy can be surrendered for cash provided at least three full years' premiums have been paid.

The Guaranteed Surrender Value allowed under this Policy is as under:

i. Before the Date of Commencement of Risk: 90 percent of the total amount of the premiums paid excluding the premiums paid for the first year.

ii. After the Date of Commencement of Risk: 90 percent of the total amount of the premiums paid before the Date of Commencement of Risk, together with 30 percent of total amount of premiums as have been paid on and after Date of Commencement of Risk excluding the premiums for the first year.

The Guaranteed Surrender Value calculated above shall be subject to following deduction of the total amount of survival benefits that might have become due on or before the date of surrender. Further all extra premiums and/or any other premium including premium for Premium Waiver Benefit, if any shall not be considered in the premiums refunded.

Cash Value of any existing vested bonuses, if any, shall also be allowed if not paid earlier.

If less than three full years premiums have been paid under the policy, then nothing shall be payable.

17. Special Surrender Values :
The special surrender value will be the discounted value of the Paid-up value (as defined in para 14) and the existing vested bonuses. The discounted factor shall be the surrender factors used for our Endowment Assurance plan, which will depend on the policy term and the duration elapsed since commencement of the policy.

The Special Surrender value calculated above will be subject to the deduction of the survival benefits which have become due on or before the date of surrender.

The special Surrender value will be payable, if it is more favourable to the policyholder.

18. Grace period for payment of premium :
A grace period of one calendar month but not less than 30 days shall be allowed for payment of yearly or half yearly or quarterly premium. If after the date of commencement of risk, death occurs within this period but before the payment of premium then due, the policy shall still be valid and the Sum Assured shall be paid after deduction of the said premium as also the unpaid premium/s falling due before the next anniversary of the policy. If the premium is not paid before the expiry of the days of grace, the policy lapses.

If the policy has not lapsed and the claim is admitted in case of death under a Policy where the mode of payment of premium is other than yearly, unpaid premiums, if any, falling due before the next Policy anniversary shall be deducted from the claim amount.

19. Revivals or Reinstatements of lapsed policy :
If the Policy has lapsed, and the period of Auto Cover, if applicable is over, 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 or before the date of expiry of policy term, whichever is earlier, on submission of proof of continued insurability of the life assured and/or proposer (if Premium Waiver Benefit is opted for), 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 fixed by the Corporation from time to time. The Corporation, however, reserves the right to accept, accept with modified terms or decline the revival of discontinued policy. The revival of a discontinued Policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Proposer / Life Assured.

20. Loans :
No loans will be available to the policyholders under this plan.

21. Suicide Clause :
Not applicable for the basic plan but applicable for optional Premium waiver Benefit

22. Normal requirements for claim :
The normal documents which the claimant shall submit while lodging the claim in case of death of the Life Assured / Policyholder shall be the claim forms accompanied with original policy document, proof of title, proof of death, proof of accident/disability, medical treatment prior to death, school / college / employer’s certificate, whichever is applicable, to the satisfaction of the Corporation. If the age is not admitted under the policy, the proof of age of the Life Assured shall also be submitted.

Where the policy results into a survival benefit 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.

23. 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.

24. Back-dating interest :
The Policy can be dated back within the financial year as usual. Back-dating interest will be charged at the rate of 8% p.a. for dating back in excess of one month. This rate is subject to revision from time to time. The interest shall be charged even where the policy is back dated to a lean month.

25. Policy stamping :
Policy stamping charges will be 20 paise per thousand Sum Assured under this Plan.

26. Reinsurance :
Normal procedure for reinsurance will apply.

27. Assignments / Nominations:
This policy is in no event assignable by the Proposer, but after the Policy has vested in the Life Assured he may appoint a nominee or nominees or create an Assignment thereof. In such case 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.

28. Proposal Form :
Proposal Form No. 340 and 360 may be used for this plan.

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