Re: INTRODUCTION OF LIC’s MARKET PLUS - I (Plan No.

191)

1. INTRODUCTION
It has been decided to introduce LIC’S Market Plus - I (Plan No. 191) with effect
from 17th June 2008. The Unique Identification Number (UIN) for LIC’s Market
Plus – I plan is 512L249V01.This number has to be quoted in all relevant
documents furnished to the policyholders and other users (public, distribution
channels).

It is a unit linked deferred pension plan. The policyholder can choose the plan
with or without risk cover. He can also choose the level of cover within the
limits, which will depend on the mode and amount of premium he desires to
pay. The allocated premium will be utilized to purchase units as per the
selected fund type. The Policyholder’s Fund Value will be subject to deduction
of charges mentioned in para 3 of this circular. Units will be allotted and
cancelled based on the Net Asset Value (NAV) of the respective fund applicable
to the date of allotment / cancellation. There is no Bid-Offer spread (both the
Bid price and Offer price of units will be equal to the NAV). The NAV will be
computed on daily basis and will be based on the investment performance,
Fund Management Charges (FMC) and whether fund is expanding or
contracting under each fund type. Other details of this plan are as follows.

2. INVESTMENT FUND TYPES

The premiums allocated to purchase units will be invested according to the
investment pattern prescribed for different fund types. The types of fund and
their investment pattern are as under:

Fund Investment in Short-term Investment in Details and

Type Government / investments Listed Equity objective of the
Government such as money Shares fund for risk
Guaranteed market /return
Securities / instruments
Corporate Debt
Bond Not less than Not more than Nil Low risk
Fund 60% 40%
Not less than 15% Steady Income –
Secured Not less than Not more than & Lower to Medium
Fund 45% 40% Not more than risk
55%
Balanced Income
Balance and growth –
d Fund Not less than Not more than Not less than 30% Medium risk
30% 40% &
Not more than Long term Capital
Growth 70% growth – High risk
Fund
Not less than Not more than
20% 40% Not less than 40%
&
 Not more than
80%

The policyholder must opt for any ONE of the above 4 funds to invest his
premiums.

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

When Appropriation price is applied (when fund is expanding):

Market value of investment held by the fund plus the expenses incurred in the
purchase of the assets plus the value of any current assets plus any accrued
income net of fund management charges less the value of any current liabilities
less provisions, if any divided by the number of units existing at the valuation date
(before any new units are allocated).

When Expropriation price is applied (when fund is contracting):

Market value of investment held by the fund less the expenses incurred in the sale
of the assets plus the value of any current assets plus any accrued income net of
fund management charges less the value of any current liabilities less provisions,
if any divided by the number of units existing at the valuation date (before any
units redeemed).

3. CHARGES AND FREQUENCY OF CHARGES

i. Premium Allocation Charge:
This is the percentage of the premium appropriated towards charges from the
premium received. The balance known as allocation rate constitutes that part of
the premium which is utilized to purchase (Investment) units for the policy.

The allocation charges are as below:

Single premium: 3.3%

Regular premium:
Premium Band (per annum) Allocation charge
First Year Thereafter
5,000 to 75,000 16.50% 2.50%
75,001 to 1,50,000 15.75% 2.50%
1,50,001 to 3,00,000 15.00% 2.50%
3,00,001 to 5,00,000 14.25% 2.50%
5,00,001 and above 13.50% 2.50%

Allocation charge for Top-up: 1.25%

ii. Charges for optional covers:

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

If opted for Life cover, charge in respect of the same, 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. 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 Assured under Basic plan per
annum for standard lives, are given in Annexure I. These rates are guaranteed
for the term of the policy issued under this plan.

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.

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 along with the Mortality charge and Critical Illness Benefit
charge 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.

Critical Illness Benefit rider and Accident Benefit rider will be allowed only if life
cover is opted for. The charges for life cover and rider benefits will be made only if
they are opted for.

iii. Other Charges

a) 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 by canceling appropriate number of units out of Policyholder’s
Fund value.

b) Fund Management Charge

Fund Management Charges (FMC) are dependent on type of Fund and are
deductible on the date of computation of NAV at the following rates:
0.5% p.a. of Unit Fund for “Bond” Fund
0.6% p.a. of Unit Fund for “Secured” Fund
 0.7% p.a. of Unit Fund for “Balanced” Fund
0.8% p.a. of Unit Fund for “Growth” Fund
The NAV, thus declared, will be net of FMC.

c) Switching Charges
This is a charge levied on switching of monies from one fund to another. This
charge will be levied at the time of effecting switch at the rate specified under
Para 9 (a) below.

d) Bid/Offer Spread
Nil.

e) Surrender Charges
Nil.

f) Service Tax Charge

A service tax charge, if any, shall be levied on the following charges
i) Policy Administration, Mortality, Accident Benefit and Critical Illness Benefit
rider, if any - by canceling appropriate number of units out of the
Policyholder’s Fund Value on a monthly basis as and when the
corresponding Policy Administration, Mortality, Accident Benefit and
Critical Illness Benefit rider charges are deducted.
ii) Premium allocation - at the time of allocation.
iii) Fund Management – at the time of deduction of Fund Management
Charge.
iv) Switching - at the time of effecting switch and
v) Alteration (as provided under Miscellaneous charge) - on the date of
alteration in the policy.
The level of this charge will be as per the rate of service tax as applicable from
time to time. Currently, the rate of Service Tax is 10% with an educational cess
at the rate of 3% thereon and hence effective rate is 10.30%.

g) Miscellaneous Charge
This is a charge levied for an alteration within the contract, such as reduction
in policy term, reduction in Sum assured, change in premium mode to higher
frequency, grant of Accident Benefit after the issue of the policy etc., may be
allowed subject to a charge of Rs. 50/- which will be deducted by canceling
appropriate number of units out of the Policyholder’s Fund value and the
deduction shall be made on the date of alteration in the policy. The alteration
will be effective from the policy anniversary coincident with or following the
alteration.

The Corporation reserves the right to accept or decline the alteration in the
policy. The alteration shall take effect from the policy anniversary coincident or
following the alteration only after the same is approved by the Corporation and
is specifically communicated in writing to the Life Assured.

iv. 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.

In case the policyholder does not agree with the revision of charges the
policyholder shall have the option to withdraw the Policyholder’s fund value.

4. 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, 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, 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 amount available on vesting, NAV of the date of vesting of annuity

shall be applicable.

5. BENEFITS
a) Benefits payable on death before vesting
In case of death of the policyholder within the deferment term where Life cover
is opted for and is in force, the nominee shall be eligible to get the Sum Assured
under the Basic Plan together with the Policyholder’s Fund value as at the date
of booking the liability. The liability shall be booked after receipt of intimation
along with death certificate. The benefit may be got in a lump sum or in the form
of pension or a combination of lump sum and pension as desired by the
nominee. The pension will be based on the then prevailing immediate annuity
rates under the relevant annuity option.

In case the policy is taken without life cover, then the Policyholder’s Fund value
as at the date of booking the liability, as mentioned above, shall be payable to
the nominee. Again, the nominee can choose either a lump sum or pension or a
combination of lump sum and pension, which will be based on the then
prevailing immediate annuity rates under the relevant annuity option.
 If the policy is in lapsed condition, then only the Value of the units held in the
Policyholder’s Fund shall become payable to the nominee. This benefit may be
chosen either in lump sum or in the form of pension as desired by the nominee.
The pension will be based on the then prevailing immediate annuity rates under
the relevant annuity option.

b) Benefit on vesting
On the policyholder surviving up to the date of vesting, the Policyholder’s Fund
value will compulsorily be utilised to provide an annuity based on the then
prevailing immediate annuity rates under the relevant annuity option. The
policyholder will have to intimate his/ her choice of annuity option to the
Corporation 6 months prior to the date of vesting under the policy. There is also
an option to commute up to one-third of the Fund Value of the units held in the
Policyholder’s Fund value at the time of vesting of the annuity, which shall be
paid in lump sum. In case commutation is opted for, the amount of
annuity/pension available will be reduced proportionately. There will also be an
option to purchase pension from any other life insurance company registered
with IRDA subject to Regulatory provisions. If the policyholder opts to purchase
pension from other insurance company, he/she will have to inform LIC six
months prior to the vesting date. In such cases, LIC will transfer the
Policyholder’s Fund value directly to the chosen Company.

Notwithstanding the above mentioned, in case the amount at the vesting date is
insufficient to purchase the minimum amount of pension allowed by LIC, then
the balance in the Policyholder’s Fund value at the vesting date shall be
refunded to the Policyholder.

c) Options:
i. Life Cover
The policy can be issued either with or without life insurance cover. If life
insurance cover is opted for by the policyholder, he/ she can choose Sum
Assured within the following limits, subject to a minimum of Rs. 25,000.
For Single premium policies: up to and equal to the Single Premium
For Regular premium policies:
If Critical Illness Benefit Rider is opted for:
10 times of the annualized premium if age at entry is upto 40 years.
5 times of the annualized premium if age at entry is 41 years and above.
If Critical Illness Benefit Rider is not opted for:
20 times of the annualized premium if age at entry is upto 40 years.
10 times of the annualized premium if age at entry is 41 years and
above.
Where the minimum Sum Assured under the basic plan is not in the multiples of
Rs. 5,000, it will be rounded off to the next multiple of Rs. 5,000.

ii. 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 value 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 life cover Sum Assured opted for,
subject to an overall limit of Rs.50 lakh taking all existing policies of the Life
Assured under individual as well as group schemes including policies with in-built
accident benefit taken from Life Insurance Corporation of India and other
insurance companies and the Accident Benefit Rider Sum Assured under the new
proposal into consideration.

The Accident Benefit rider option will not be available in case life cover sum
assured is zero.

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.

iii. Critical Illness Rider Option

Critical Illness Rider Benefit can be opted for only if Life cover has been opted.
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 limit for this rider will be Rs.10 lakh under all policies of the Life
Assured with the Corporation taken together. The Critical Illness Rider Sum
Assured shall be available only if the sum assured under the life over is equal to
or greater than Rs.50,000. The Critical Illness Sum Assured shall not exceed the
Sum Assured under the Basic Plan.

This benefit will be available only till the policy anniversary on which the age
nearer birthday of the Policyholder is 60 years or for a maximum term of 35
years whichever is less. 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.

Critical Illness Benefit rider can be opted for at the inception of the policy only
and shall not be allowed thereafter.

d) Annuity Options
The rate at which the claim amount will be converted into an annuity is not
guaranteed and will be at the rate prevalent at that time. Further a number of
annuity options will be available and the rate for different options may differ.

6. DISCONTINUANCE OF PREMIUMS:
If premiums are payable either yearly, half-yearly, quarterly or monthly (through
ECS) and the same have not been paid within the days of grace under the Policy,
the Policy will lapse. The policyholder will have an option to revive the policy
within the specified period (described in para 16 below).

I. Where atleast 3 years’ premiums have been paid, the Life cover, Critical
Illness and Accident Benefit rider, if any, shall continue during the revival
period. During this period, the charges for Life Cover, Critical Illness Benefit
cover 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 vesting, or
iii) till such period that the Policyholder’s Fund value reduces to
one annualized premium,
whichever is earlier.

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

A. In case of Death
Life cover Sum Assured plus the Policyholder’s Fund value, if life cover is
opted for. If life cover is not opted for, then only the Policyholder’s Fund
value is payable.

B. In case of Death due to accident

Accident Benefit Sum Assured in addition to the amount under A above, if
Accident Benefit is opted for.

C. In case of Critical Illness claim

Critical Illness Rider Sum Assured, if opted for.

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

E. On vesting
The Policyholder’s Fund value.

F. Compulsory surrender
The policy shall be terminated compulsorily in following cases:
i) The balance in the Policyholder’s Fund value, at all times, shall
be subject to a minimum balance of one annualized premium. In case the
Policyholder’s Fund value falls below this limit, the policy shall
compulsorily be terminated with a notice to the policyholder and the
balance amount in the Policyholder’s Fund value will be refunded to the
policyholder.
ii) 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 the
date of vesting, whichever is earlier and the balance amount in the
Policyholder’s Fund Value shall be refunded to the policyholder.
 II. Where the policy lapses without payment of at least 3 years’ premiums,
the Life Cover, Critical Illness Benefit and Accident Benefit 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:

G. In case of Death:
The Policyholder’s Fund value.

H. In case of death due to accident:

The amount under G above.

I. In case of Critical Illness claim:

Nil

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

K. Compulsory Surrender:
The policy shall be terminated compulsorily in following cases:
i) In case the policy is not revived during the period of revival,
then the policy shall be terminated after completion of three years from
the date of commencement of the policy or on expiry of revival period,
whichever is later. In case the period of revival expires before the end of
third policy year, then the Policyholder’s fund value shall be converted
into monetary terms and no charges shall be deducted thereafter. This
monetary value (described in para 7 below), shall be paid to the
policyholder after the end of third policy year.
ii) 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.

7. SURRENDER VALUE AND SURRENDER CHARGE:

The policyholder will have an option to surrender the policy only after completion
of three policy years both under Single and Regular premium contracts. The
surrender value will be the Policyholder’s Fund value at the date of surrender.
There will be no surrender charge.

If a policyholder applies for surrender of the policy within 3 years from the date of
commencement of policy, then the Policyholder’s Fund Value of units 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 be payable to the nominee/ legal
heir immediately on death.

The conversion in monetary amount shall be 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 value as on that date will be the
monetary amount.

This monetary amount shall be transferred to Non-Unit fund and the payment
when due shall be made from this fund only.

Irrespective of whether the policy is a single premium or regular premium policy or

has run for less or more than three years, if the balance in the Policyholder’s Fund
value, at any time is not sufficient to recover the relevant charges, the policy shall
compulsorily be terminated and the balance amount in the Policyholder’s Fund
value will be refunded to the policyholder.

Once a policy is surrendered it cannot be reinstated.

8. ELIGIBILITY CONDITIONS AND FEATURES:

For Basic Plan without Life Cover

a) Minimum Sum Assured NIL.

b) Maximum Sum Assured NIL.

c) Minimum Premium (Other Than Monthly ECS Mode)

Rs. 5,000 p.a. For deferment terms 20
yrs. And above.
Rs. 10,000 p.a. For deferment terms 15
to 19 yrs.
Rs. 15,000 p.a. For deferment terms 10
to 14 yrs.

(Monthly ECS Mode)

Rs. 10,000 p.a. For deferment terms 15
yrs. And above.
Rs. 15,000 p.a. For deferment terms 10
to 14 yrs.
Rs. 30,000 for Single premium

d) Maximum Premium No Limit

(In years)
e) Minimum Entry Age 18 last birthday
f) Maximum Entry Age 75 nearest birthday
g) Minimum Deferment Term 10 years
 h) Minimum Vesting Age 40 completed
i) Maximum Vesting Age 79 nearest birthday
Annualized premiums (other than monthly (ECS)) shall be payable in multiples
of Rs. 1,000.

For Basic Plan with Life Cover

a) Minimum Sum Assured Rs.30000
b) Maximum Sum Assured
Single Premium Equal to single premium
Regular Premium
If Critical Illness Benefit 10 times of the annualized premium if age at
Rider is opted for entry is upto 40 years.
5 times of the annualized premium if age at
entry is 41 years and above.
If Critical Illness Benefit 20 times of the annualized premium if age at
Rider is not opted for entry is upto 40 years.
10 times of the annualized premium if age at
entry is 41 years and above

c) Minimum Premium (Other Than Monthly ECS Mode)

Rs. 5,000 p.a. For deferment terms 20 yrs.
And above.
Rs. 10,000 p.a. For deferment terms 15 to 19
yrs.
Rs. 15,000 p.a. For deferment terms 10 to 14
yrs.

(Monthly ECS Mode)

Rs. 10,000 p.a. For deferment terms 15 yrs.
And above.
Rs. 15,000 p.a. For deferment terms 10 to 14
yrs.
Rs. 30,000 for Single premium

d) Maximum Premium No Limit

(In years)
e) Minimum Entry Age 18 last birthday
f) Maximum Entry Age 65 nearest birthday
g) Minimum Deferment Term 10 years
h) Minimum Vesting Age 40 completed
i) Maximum Vesting Age 75 nearest birthday
j) Maximum life cover 75 nearest birthday
Ceasing Age
Sum Assured shall be available in multiples of Rs. 5,000 and Annualized
premiums shall be payable in multiples of Rs. 1,000.

For Accident Benefit

a) Minimum Sum Rs. 25000
Assured
b) Maximum Sum An amount equal to the Sum Assured under the
Assured Basic Plan, subject to maximum of Rs. 50 lakhs
overall limit considering the Accident Benefit
Sums Assured in respect of all existing policies
on the life of the Life Assured under individual
and group schemes including the policies with
Life Insurance Corporation of India and other
insurance companies and the Accident Benefit
Rider Sum Assured under new proposal into
consideration.
The Sum Assured shall be in multiples of Rs.
5,000.

c) Minimum/Maximum No separate limit.

Premium
(In years)
d) Minimum Entry Age 18 completed
e) Maximum Entry Age 60 nearest birthday
f) Minimum Policy Term 10 years
g) Maximum Accident 70 nearest birthday
Benefit cover Ceasing
Age

For Critical Illness Rider Benefit

a) Minimum Sum Assured Rs. 50,000
b) Maximum Sum Assured An amount equal to the sum assured
under Basic Plan subject to the maximum
of Rs.10 lakh overall limit taking all
critical illness riders under all existing
policies of the life assured and the critical
illness rider option under the new
proposal into consideration.
The Sum Assured shall be available in
multiples of Rs. 10,000.

c) Minimum/Maximum No separate limit.

Premium
In years
d) Minimum Entry Age 18 completed
e) Maximum Entry Age 50 nearest birthday
f) Policy Term 10 to 35 years
g) Maximum Critical Illness 60 nearest birthday
Ceasing Age

9. ADDITIONAL FEATURES:
a. Switching
The policyholder can switch between any fund types during the policy
term. On switching the entire amount is switched to the new 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, Policyholder’s Fund Value after deducting switching
charge, if any, shall be transferred to the New Fund type opted for by the
policyholder and shall be utilized to allocate Fund Units at the NAV under
the new Fund type on the said date of switch. If a valid application is
received up to 3 p.m. by the servicing branch, the closing NAV of the
same day shall be applicable and in respect of the applications received
after 3 p.m. by the servicing branch, the closing NAV of the next business
day shall be applicable.

Switching shall not be allowed under a lapsed policy.

b. Top-Up (Additional Premium)

The policyholder can pay Top-up in multiples of Rs.1,000/- without any
limit at anytime during the term of the policy. In case of yearly, half-
yearly, quarterly or monthly(ECS) mode of premium payment such Top-up
can be paid only if all due premiums have been paid under the policy.

c. Increase / Decrease In Benefits

No increase of benefits will be allowed under the plan. The Policyholder
can, however, decrease any or all of the risk covers once in a year during
the Policy term, provided all due premiums under the Policy have been
paid. The reduced levels of cover will be available within the limits
specified in para 8. When the life cover is decreased then Accident Benefit
and Critical Illness rider sum assured, if any, shall also be reduced to the
extent of reduced cover under the main plan. Further, once reduction in
risk cover is allowed, the same cannot be subsequently increased/
restored.

10. MODES OF PREMIUM PAYMENT

The policyholder has the choice either to pay Single Premium (in one lump
sum) or Regular premium (yearly, half-yearly, quarterly or monthly
(through ECS only)). The minimum Annualised Premium will be Rs. 5,000
increasing thereafter in multiples of Rs. 1,000. There will be no mode
specific charges/ rebates.
Single premium can be paid subject to a minimum of Rs. 10,000 if not
opted for life cover and Rs. 25,000 if opted for life cover and thereafter in
multiples of Rs. 1,000.

11. COMMISSION PAYABLE TO AGENTS/ CORPORATE AGENTS/

BROKERS & DEVELOPMENT OFFICER’S CREDIT:

Commission to Agents, Corporate Agents and Brokers:

• For regular premium policies – 7.5% of the premium in the first year and
2% of the premium for subsequent years
• For Single premium policies – 2% of the premium
• 1% of the amount deposited as Top-up any time during the Policy term
• There will be no bonus commission.

Development Officer’s credit will be as under:

• 20% in case of Regular Premium policies
• 5% in case of Single Premium Policies

12. 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: 1.0%
Regular premium:

Premium Band (per annum) Allocation charge

First Year Thereafter
5,000 to 75,000 4.00% Nil
75,001 to 1,50,000 3.25% Nil
1,50,001 to 3,00,000 2.50% Nil
3,00,001 to 5,00,000 1.75% Nil
5,00,001 and above 1.00% Nil

Allocation charge for Top-up: Nil

All other charges shall be as mentioned in Para 3(ii) to 3(iii).

13. LOANS
No loan shall be granted under this plan.

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

15. DAYS OF GRACE:

A grace period of one calendar month but not less than 30 days will be
allowed for payment of yearly or half-yearly or quarterly premiums and 15
days for monthly (through ECS) premiums. If the death of Life Assured
occurs within the grace period but before the payment of premium then
due, the policy will be treated as in-force and the benefits shall be paid
after deduction of all the relevant charges, if not recovered.

If the premium is not paid before the expiry of the days of grace, the
policy lapses and benefits shall be paid as per details given in para 6
under Discontinuance of premiums.

16. REVIVALS
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 vesting, 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 years, the policy may be
revived within two years from the due date of first unpaid premium. If the
life cover is opted for, 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 life cover is not
opted for, the revival shall be made on the payment of all the arrears of
premium without interest.

If at least 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 vesting, if earlier. No
proof of continued insurability is required and all arrears of premium
without interest shall be required to be paid, irrespective of whether life
cover is opted for or not.

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 Policyholder.

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 terminate 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 one annualized premium,
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.

Reinstatement of surrendered policy shall not be allowed.

17. 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:

Fund Value of units in the Policyholder’s Fund value

Plus unallocated premium.
Plus Policy Administration charge deducted
Less charges @ Rs.0.20%o Sum Assured under the basic plan if life
cover is opted for or @ Rs. 0.20%o of Total Premiums payable
during entire term of policy, if life cover is not opted for.
Less Actual cost of medical examination and special reports, if any.
 In case the policy is returned during the cooling-off period, Commission
shall be recovered from the concerned Agent and the Development
Officer’s credit allowed shall be withdrawn.

18. BACK DATING:

Back dating of policy will not be allowed.

19. POLICY STAMPING:

Policy Stamping will be at the rate of Rs.0.20 per thousand Sum Assured,
if life cover is opted for. However, in case the policy is taken without any
life insurance cover, then policy stamps will be affixed at the rate of
Rs.0.20 per thousand of total premium payable during entire term of the
policy.

20. ASSIGNMENTS / NOMINATION:

Notice of Nomination/ change of Nomination should be submitted for
registration to the office of the Corporation, where this policy is serviced.
In registering nomination the Corporation does not accept any
responsibility or express any opinion as to its validity or legal effect.

No assignment will be allowed under this plan.

21. 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 vesting 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.

22. REINSURANCE:
For reinsurance purposes, the retention limits will be those applicable to
Term Assurance Plans and Critical Illness Benefit, if these covers are opted
for.

23. 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.
24. PROPOSAL FORM:
The specimen Proposal Form is enclosed in Annexure II.

25. POLICY DOCUMENT:

The specimen Policy document will be sent by the Corporate Communications
Department, Central Office.