In addition, this plan also takes care of liquidity needs through its Auto Cover as well as loan facility
It is a close ended plan which shall be available for sale upto 31st August, 2017, coinciding with the Diamond Jubilee Year of the Corporation.
4. Mode and High Basic Sum Assured Rebates:
Mode Rebate:
Yearly mode - 2% of Tabular Premium
Half-yearly mode - 1% of Tabular premium
Quarterly, Monthly (ECS) & - NIL
Salary deduction
High Basic Sum Assured Rebate:
Basic Sum Assured (BSA) Rebate (Rs.)
1,00,000 to 1,80,000 - Nil
2,00,000 to 4,80,000 - 2.5 ‰ BSA
5,00,000 - 3 ‰ BSA
5. Revival:
If premiums are not paid by the end of the grace period then the policy will lapse. A lapsed policy can be revived within a period of 2 consecutive years from the date of first unpaid premium by paying all the arrears of premium together with interest (compounding half-yearly) at such rate as fixed by the Corporation at the time of the payment, subject to submission of satisfactory evidence of continued insurability.
The Corporation reserves the right to accept at original terms, accept at revised terms or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Policyholder.
Revival of rider, if opted for, will be considered along with revival of the Base Policy, and not in isolation.
The Revival Period and Auto Cover Period (as mentioned in para 8 below) shall run concurrently i.e. Auto Cover period does not extend period of revival.
6. Paid-up:
If less than three years’ premiums have been paid and any subsequent premium be not duly paid, all the benefits under the policy shall cease after the expiry of grace period and nothing shall be payable.
If at least three full years’ premiums have been paid and any subsequent premiums be not duly paid, the policy shall not be void but shall continue as a paid-up policy. However, under such policies Auto Cover Period as mentioned below shall be applicable.
Auto Cover Period:
“Auto Cover Period” under a paid-up policy shall be the period from due date of first unpaid premium (FUP). The duration of Auto Cover Period shall be as under:
1. If at least three full years’ but less than five full years’ premiums have been paid under a policy and any subsequent premium is not duly paid: Auto Cover Period of six months shall be available.
2. If at least five full years’ premiums have been paid under a policy and any subsequent premium is not duly paid: Auto Cover Period of two years shall be available.
The benefits payable under a paid-up policy during Auto Cover Period shall be as follows:
1. Death Benefit : Death benefit, as payable under an inforce policy, shall be paid after deduction of (a) the unpaid premium(s) in respect of the base policy with interest thereon upto the date of death, and (b) the balance premium(s) for the base policy falling due from the date of death and before the next policy anniversary, if any. If any survival benefit was due but not paid before the date of death, the same shall also be paid along with the above mentioned death benefit.
2. Survival Benefit : The survival benefit shall be paid only after the policy is revived.
The benefits payable under a paid-up policy after the expiry of Auto Cover Period shall be as follows:
1. On death during the policy term: Sum Assured on Death under a paid-up policy shall be reduced to such an amount, called “Death Paid-up Sum Assured” and shall be equal to [Sum Assured on Death * (Number of premiums paid / Total number of premiums payable)]
2. On maturity: The Sum Assured on Maturity under paid-up policy shall be altered to such an amount called “Maturity Paid-up Sum Assured” which shall be payable on Life Assured surviving to the end of the policy term. The “Maturity Paid-up Sum Assured” shall be equal to [(Number of premiums paid/Total Number of premiums payable) x (Sum Assured on Maturity plus Total Survival Benefits payable under the policy)] less Total amount of Survival Benefits already paid under the policy. In addition to “Maturity Paid-up Sum Assured” the surrender value of the proportionate premiums charged towards risk cover during the extended cover period shall also be payable and the policy will terminate.
The survival benefits having already been incorporated in the calculation of Maturity Paid-up Sum Assured, future survival benefits shall not be payable separately. The extended term cover shall also not be available in case of paid-up policies.
Rider(s) shall not acquire any paid-up value and the rider benefits cease to apply, if policy is in lapsed condition.
7. Surrender Value:
The policy can be surrendered at any time provided premiums have been paid for atleast three consecutive years. On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value and Special Surrender Value.
The Special Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to prior approval of IRDAI.
The Guaranteed Surrender Value payable during the policy term shall be equal to the total premiums paid multiplied by the Guaranteed Surrender Value factor applicable to total premiums paid, less any survival benefits already paid under the policy. These Guaranteed Surrender Value factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered and are specified as below:
Guaranteed Surrender value factors applicable to total premiums paid
Policy Year >
|
| |
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
|
11
|
12
|
13
|
14
|
15
|
16
|
17
|
18
|
19
|
20
|
21
|
22
|
23
|
24
|
Policy Term >
|
16
|
0.00%
|
0.00%
|
30.%
|
50.%
|
50.%
|
50.%
|
50.%
|
54.%
|
58.%
|
61.%
|
65.%
|
69.%
|
73.%
|
76.%
|
80.%
|
80.%
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
20
|
0.00%
|
0.00%
|
30.%
|
50.%
|
50.%
|
50.%
|
50.%
|
53.%
|
55.%
|
58.%
|
60.%
|
63.%
|
65.%
|
68.%
|
70.%
|
73.%
|
75.%
|
78.%
|
80.%
|
80.%
|
-
|
-
|
-
|
-
|
|
24
|
0.00%
|
0.00%
|
30.%
|
50.%
|
50.%
|
50.%
|
50.%
|
52.%
|
54.%
|
56.%
|
58.%
|
59.%
|
61.%
|
63.%
|
65.%
|
67.%
|
69.%
|
71.%
|
73.%
|
74.%
|
76.%
|
78.%
|
80.%
|
80.%
|
Premiums referred above shall not include any taxes, extra amount if charged under the policy due to underwriting decision and rider premiums, if any.
After expiry of the policy term i.e. during Extended Cover period, Special Surrender value shall be applicable.
8. Policy Loan:
Loan can be availed during the policy term provided the policy has acquired a surrender value and subject to the terms and conditions as the Corporation may specify from time to time.
The interest rate to be charged for policy loan shall be determined at periodic intervals. For Financial Year 2016-17, the applicable interest rate is 10% p.a. payable half-yearly
The maximum loan as a percentage of surrender value shall be as under:
• For inforce policies – upto 90%
• For paid-up policies – upto 80%
Any loan outstanding along with interest shall be recovered from the survival benefits or claim proceeds at the time of exit.
9. Taxes:
Statutory Taxes, if any, imposed on such insurance plans by the Govt. of India or any other constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.
The amount of Service Tax payable as per the prevailing rates shall be payable by the policyholder on premiums payable under the policy, which shall be collected separately over and above in addition to the premiums payable by the policyholder. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.
10. Free look period:
If the Policyholder is not satisfied with the “Terms and Conditions” of the policy, the policy may be returned to the Corporation within 15 days from the date of receipt of the policy bond stating the reasons of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of premium deposited after deducting the proportionate risk premium (for base plan and riders, if any) for the period on cover, expenses incurred on medical examination, special reports, if any and stamp duty charges.
11. Exclusion:
Suicide: - This policy shall be void
i. If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim except for 80% of the premiums paid, provided the policy is inforce.
ii. If the Life Assured (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the premiums paid till the date of death or the surrender value, shall be payable. The Corporation will not entertain any other claim. This clause shall not be applicable for a policy lapsed without acquiring paid-up value and nothing shall be payable under such policy.
Note: Premiums referred above shall not include any taxes, extra amount if charged under the policy due to underwriting decision and any rider premium(s) other than Term Assurance Rider.
