The
scheme will be a one year cover Term Life Insurance Scheme, renewable from year
to year, offering life insurance cover for death due to any reason.
2. What would be the benefits under the scheme and premium payable?
Rs.2
lakh is payable on a subscriber’s death due to any reason. The premium payable
is Rs.330/- per annum per subscriber.
3. How will the premium be paid?
The
premium will be deducted from the account holder’s savings bank account through
‘auto debit’ facility in one installment, as per the option to be given
on enrollment. Members may also give one-time mandate for auto-debit every
year till the scheme is in force, subject to re-calibration that may be
deemed necessary on review of experience of the scheme from year to year.
4. Who will offer / administer the scheme?
The
scheme would be offered / administered through LIC and other Life Insurance
companies willing to offer the product with necessary approvals on similar
terms, in collaboration with participating Banks. Participating banks will be
free to engage any such life insurance company for implementing the scheme for
their subscribers.
5. Who will be eligible to subscribe?
All savings bank account holders in the age 18 to 50 years in participating banks will be entitled to join. In case of multiple saving bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one savings bank account only.
6. What is the enrolment period and modality?
Initially
on launch for the cover period from 1st June 2015 to 31st May 2016 subscribers
are expected to enroll and give their auto-debit option by 31st May 2015, extendable up to 31st August 2015. Enrolment subsequent to
this date will be possible prospectively on payment of full annual payment and
submission of a self-certificate of good health. Subscribers who wish to
continue beyond the first year will be expected to give their consent for
auto-debit before each successive May 31st for successive years. Delayed renewal
subsequent to this date will be possible on payment of full annual premium and
submission of a self-certificate of good health.
7. Can eligible individuals who fail to join the scheme in the initial year join in subsequent years?
Yes,
on payment of premium through auto-debit and submission of a self-certificate
of good health. New eligible entrants in future years can also join
accordingly.
8. Can individuals who leave the scheme rejoin?
Individuals
who exit the scheme at any point may re-join the scheme in future years by
paying the annual premium and submitting a self declaration of good health.
9. Who would be the Master policy holder for the scheme?
Participating
Banks will be the Master policy holders. A simple and subscriber friendly
administration & claim settlement process shall be finalized by LIC /
chosen insurance company in consultation with the participating bank.
10. When can the assurance on life of the member terminate?
The
assurance on the life of the member shall terminate / be restricted accordingly
on any of the following events:
I. On
attaining age 55 years (age near birth day), subject to annual renewal up to
that date (entry, however, will not be possible beyond the age of 50 years).
II.
Closure of account with the Bank or insufficiency of balance to keep the
insurance in force.
III.
In case a member is covered through more than one account and premium is
received by LIC / insurance company inadvertently, insurance cover will be
restricted to Rs. 2 Lakh and the premium shall be liable to be forfeited.
11. What will be the role of the insurance company and the Bank?
I. The scheme will be administered by LIC or any other Life Insurance company
which is willing to offer such a product in partnership with a bank /
banks.
II. It
will be the responsibility of the participating bank to recover the appropriate
annual premium in one installment, as per the option, from the account holders
on or before the due date through ‘auto-debit’ process and transfer the amount
due to the insurance company.
III.
Enrollment form / Auto-debit authorization / Consent cum Declaration form in
the prescribed proforma, as required, shall be obtained and retained by the
participating bank. In case of claim, LIC / insurance company may seek
submission of the same. LIC / Insurance Company also reserve the right to call
for these documents at any point of time.
12. How would the premium be appropriated?
A. Insurance Premium to LIC /other insurance company: Rs.289/- per annum per
member;
B.
Reimbursement of Expenses to BC/Micro/Corporate/Agent: Rs.30/- per Annum per
member;
C.
Reimbursement of Administrative expenses to participating Bank: Rs.11/- per
annum per member.
13. Will this cover be in addition to cover under any other insurance scheme the subscriber may be covered under?
Yes.
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