LIC’s Bachat Plus is a Non-Linked, Participating, Individual, Life
Assurance, Savings plan which offers a combination of protection and
savings. This combination provides financial support for the family of
the deceased policyholder any time before maturity and lump sum
amount at the time of maturity for the surviving policyholders. This plan
also takes care of liquidity needs through its loan facility. Proposer can
choose to pay the premium either as Lumpsum (Single Premium) or for
a Limited period of 5 years.
This Plan can be purchased purchased Offline through agent /
other intermediaries as well as Online directly through website
www.licindia.in.
1. BENEFITS:
A) Death Benefit:
The proposer will have an option to choose “Sum Assured
on Death” as per the two options available under each of
Single Premium and Limited Premium payment.
*The options should be chosen carefully depending on the
individual’s specific needs as the premium and benefits under
the plan shall vary as per the option chosen and the same shall
not be altered later.
Sum Assured on Death
Single
Premium
Option A 10 times of “Tabular Premium for the
chosen Basic Sum Assured”
Option B 1.25 times of “Tabular Premium for the
chosen Basic Sum Assured”
Limited
Premium
Option 1 Higher of
• 10 times of (“Tabular Premium for the
chosen Basic Sum Assured” plus
modal loading, if any); or
• Guaranteed Sum Assured on Maturity
i.e. Basic Sum Assured
Option 2 Higher of
• 7 times of (“Tabular Premium for the
chosen Basic Sum Assured” plus modal
loading, if any); or
• Guaranteed Sum Assured on Maturity
i.e. Basic Sum Assured
The availability of above Options shall be subject to eligibility conditions
as mentioned in Para 2 below.
Note: In the above mentioned table
1. “Tabular Premium” shall be the premium as applicable for Single
Premium or Limited Premium for the chosen option and Basic Sum
Assured based on the age of the Life Assured before allowing for
any rebate or extra loadings. It does not include any taxes and Rider
Premium, if any.
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2. “Basic Sum assured” is the guaranteed amount that is payable on
maturity.
3. “Modal Loadings” is an addition to the tabular premium where the
premiums are paid more frequently than annually (i.e half-yearly or
quarterly or monthly).
Death benefit payable in case of death of the Life Assured during
the policy term provided the policy is in-force (i.e. all due
premiums have been paid) shall be as under:
i. On death during first five policy years:
Before the date of commencement of risk: Refund of premium(s)
paid without interest shall be payable.
The premium(s) referred above shall not include any taxes,
extra amount chargeable under the policy due to underwriting
decision and rider premium(s), if any.
On or after the date of commencement of risk: “Sum Assured on
Death” shall be payable.
ii. On death after completion of five policy years but before
the stipulated Date of Maturity:
“Sum Assured on Death” along with Loyalty Addition, if any,
shall be payable.
“Sum Assured on Death” shall be as per the Option selected
as detailed in the Table above.
The death benefit under Limited Premium payment shall not
be less than 105% of all the premiums paid as on the date of
death excluding taxes, extra premium and rider premium, if
any.
B. Maturity Benefit:
On Life Assured surviving the stipulated Date of Maturity,
provided the policy is in-force, “Sum Assured on Maturity”
along with Loyalty Addition, if any, shall be payable, where
“Sum Assured on Maturity” is equal to Basic Sum Assured.
C. Loyalty Addition:
Provided the policy has completed five policy years and all
due premiums have been paid, then depending upon the
Corporation’s experience, the policies under this plan shall be
eligible for Loyalty Addition at the time of exit in the form of
Death during the policy term or Maturity, at such rate and on
such terms as may be declared by the Corporation.
In addition, Loyalty Addition, if any, shall also be considered
in Special Surrender Value calculation on surrender of policy
during the policy term, under both single premium policy
and limited premium payment policy, provided the policy has
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completed five policy years and all premiums due under the
policy have been paid.
2. ELIGIBILITY CONDITIONS AND OTHER RESTRICTIONS
i. Minimum Entry Age:
Single Premium 90 days (completed) under Option A and
Option B
Limited Premium 90 days (completed) under Option 1
40 years (nearer birthday) under Option 2
ii. Maximum Entry Age:
Single Premium 44 years (nearer birthday) under Option A
70 years (nearer birthday) under Option B
Limited Premium
60 years (nearer birthday) under Option 1
65 years (nearer birthday) under Option 2
iii. Minimum Maturity Age : 18 years (completed)

iv. Maximum Maturity Age
Single Premium 65 years (nearer birthday)under Option A
80 years (nearer birthday) under Option B
Limited Premium 75 years (nearer birthday) under Option 1
80 years (nearer birthday) under Option 2
v. Policy Term:
Single Premium 10 to 25 years upto Age 40 under Option A
10 to 16 years from Age 41 to Age 44 under
Option A
10 to 25 years under Option B
Limited Premium 10 to 25 years both for Option 1 and Option 2
vi. Premium Payment Term : Single premium or Limited premium
for 5 years
vii. Minimum Basic Sum Assured: 1,00,000/-
viii. Maximum Basic Sum Assured: No Limit
Basic Sum Assured shall be in multiples of amounts specified below:
Premium
payment option
Sum Assured range Sum
Assured
multiple
Single Premium
Rs. 1,00,000 to Rs. 9,00,000
However, Sum Assured of
Rs 4,75,000 is not allowed.
Rs. 25,000
Above Rs. 9,00,000 Rs. 50,000
Limited
Premium
Rs. 1,00,000 to Rs. 9,00,000 Rs. 25,000
Above Rs. 9,00,000 Rs. 50,000
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Date of commencement of risk: In case the age at entry of
the Life assured is less than 8 years, the risk under this plan will
commence either 2 years from the date of commencement of the
policy or from the policy anniversary coinciding with or immediately
following the completion of 8 years of age, whichever is earlier.
For those aged 8 years or more at entry, risk will commence
immediately from the date of acceptance of the risk i.e. from the
Date of issuance of policy.
Date of vesting under the plan: If the policy is issued on the life
of a minor, 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
3. Options Available:
i. Rider Benefit:
The following two optional riders are available under this plan by
payment of additional premium at inception only.
a) LIC’s Accidental Death and Disability Benefit Rider
(UIN: 512B209V02)
The benefit cover under this rider shall be available during the
policy term or before the policy anniversary on which the age
nearer birthday of the life assured is 70 years, whichever is
earlier. If this rider is opted for, in case of accidental death,
the Accident Benefit Sum Assured will be payable in lumpsum.
In case of accidental disability arising due to accident (within
180 days from the date of accident), an amount equal to the
Accident Benefit Sum Assured will be paid in equal monthly
instalments spread over 10 years and future premiums for
Accident Benefit Sum Assured as well as premiums for the
portion of Sum Assured on Death under the Base Policy which
is equal to Accident Benefit Sum Assured, shall be waived.
The premium under this rider shall not exceed 100% of the
premium under the Base plan. The Accidental Benefit Sum
Assured shall not exceed the Sum Assured on Death under the
Base plan.
(b) LIC’s New Term Assurance Rider (UIN: 512B210V01)
The benefit cover under this rider shall be available during
the policy term or before the policy anniversary on which the
age nearer birthday of the life assured is 75 years, whichever
is earlier. If this rider is opted for, an amount equal to Term
Assurance Rider Sum Assured shall be payable on death of the
Life Assured during the policy term.
The premium under LIC’s New Term Assurance Rider shall not
exceed 30% of premiums under the Base plan and the Rider
Sum Assured, if opted, shall not exceed the Sum Assured on
Death under the Base plan.
For more details on the above Riders including eligibility
conditions, refer to the Rider Brochure or contact LIC’s
nearest Branch Office.
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ii. Settlement Option for Maturity Benefit:
Settlement Option is an option to receive Maturity Benefit in
instalments over the chosen period of 5 or 10 or 15 years instead
of lumpsum amount under an in-force as well as paid-up policy. This
option can be exercised by the Policyholder during minority of the
Life Assured or by Life Assured aged 18 years and above, for full or
part of Maturity proceeds payable under the policy. The amount
opted for by the Policyholder/Life Assured (ie. Net Claim Amount)
can be either in absolute value or as a percentage of the total claim
proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly or
quarterly or monthly intervals, as opted for subject to minimum
instalment amount for different mode of payments being as under:
Mode of Instalment payment Minimum Instalment amount
Monthly Rs. 5000/-
Quarterly Rs. 15000/-
Half-Yearly Rs. 25000/-
Yearly Rs. 50000/-
If the Net Claim Amount is less than the required amount to provide
the minimum instalment amount as per the option exercised by
the Policyholder/ Life Assured, the claim proceeds shall be paid in
lumpsum only.
For all the instalment payment options commencing during the 12
months’ period from 1st May to 30th April, the interest rate used
to arrive at the amount of each instalment shall be annual effective
rate equal to the 10 year G-Sec rate p.a. compounding half-yearly
minus 200 basis points; where, the 10 year G-Sec rate shall be as at
last trading day of previous financial year.
Accordingly, for the 12 months’ period commencing from 1st
May, 2020 to 30th April, 2021, the applicable interest rate for the
calculation of the instalment amount shall be 4.71% p.a. effective.
For exercising the Settlement Option against Maturity Benefit,
the Policyholder/Life Assured shall be required to exercise option
for payment of net claim amount in instalments at least 3 months
before the due date of maturity claim.
The first payment will be made on the date of maturity and
thereafter, based on the mode of instalment payment opted for
by the policyholder, every month or three months or six months or
annually from the date of maturity, as the case may be.
After the commencement of Instalment payments under
Settlement Option:
i. If a Life Assured, who has exercised Settlement Option against
Maturity Benefit, desires to withdraw this option and commute
the outstanding instalments, the same shall be allowed on
receipt of written request from the Life Assured. In such case,
the lump sum amount which is higher of the following shall be
paid and policy shall terminate,
• discounted value of all the future instalments due; or
• (the original amount for which settlement option was
exercised) less (sum of total instalments already paid).
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ii. The applicable interest rate that will be used to discount
the future instalment payments shall be annual effective rate
not exceeding 10 year G-Sec rate p.a. compounding halfyearly;
where, the 10 year G-Sec rate shall be as at last trading day of
previous financial year.
Accordingly, for the 12 months’ period commencing from 1st
May, 2020 to 30th April, 2021, the maximum applicable interest
rate used for discounting the future instalments shall be 6.71%
p.a. effective.
iii. After the Date of Maturity, in case of death of the Life Assured,
who has exercised Settlement Option, the outstanding
instalments will continue to be paid to the nominee as per the
option exercised by the Life Assured and no alteration
whatsoever shall be allowed to be made by the nominee.
iii. Option to take Death Benefit in Instalment:
This is an option to receive Death Benefit in instalments over the
chosen period of 5 or 10 or 15 years instead of lump sum amount
under an in-force as well as paid-up policy. This option can be
exercised by the Policyholder during minority of the Life Assured or
by Life Assured aged 18 years and above, during his/her life time; for
full or part of Death benefits payable under the policy. The amount
opted for by the Policyholder/ Life Assured (ie. Net Claim Amount)
can be either in absolute value or as a percentage of the total claim
proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly or
quarterly or monthly intervals, as opted for, subject to minimum
installment amount for different modes of payments being as under:
Mode of Instalment payment Minimum Instalment amount
Monthly Rs. 5000/-
Quarterly Rs. 15000/-
Half-Yearly Rs. 25000/-
Yearly Rs. 50000/-
If the Net Claim Amount is less than the required amount to provide
the minimum instalment amount as per the option exercised by the
Policyholder/Life Assured, the claim proceeds shall be paid in lump
sum only.
For all the instalment payment options commencing during the 12
months’ period from 1st May to 30th April, the interest rate used to
arrive at the amount of each instalment shall be annual effective rate
equal to the 10 year G-Sec rate p.a. compounding half-yearly minus
200 basis points; where, the 10 year G-Sec rate shall be as at last
trading day of previous financial year.
Accordingly, for the 12 months’ period commencing from 1st
May, 2020 to 30th April, 2021, the applicable interest rate for the
calculation of the instalment amount shall be 4.71% p.a. effective.
For exercising option to take Death Benefit in instalments, the
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Policyholder during minority of the Life Assured or the Life Assured,
if major, can exercise this option during his/her lifetime while in
currency of the policy, specifying the period of Instalment payment
and net claim amount for which the option is to be exercised. The
death claim amount shall then be paid to the nominee as per the
option exercised by the Policyholder/Life Assured and no alteration
whatsoever shall be allowed to be made by the nominee.
4. Payment of Premiums:
Premiums can be paid either in lumpsum or regularly during the
Premium Paying Term at yearly, half-yearly, quarterly or monthly
mode (through NACH only) or through salary deductions (SSS).
5. Grace Period:
I. Single Premium: Not Applicable.
II. Limited Premium: A grace period of 30 days shall be allowed
for payment of yearly or half yearly or quarterly premiums and 15
days for monthly premiums from the date of First Unpaid Premium.
During this period, the policy shall be considered in-force with the
risk cover without any interruption as per the terms of the policy. If
the premium is not paid before the expiry of the days of grace, the
Policy lapses.
The above grace period will also apply to rider premiums which are
payable along with premium for Base Policy.
6. Sample Illustrative Premium :
a) Single Premium
The sample illustrative single premiums for Basic Sum Assured of Rs
1 lakh for Standard lives are as under:
Option A
Age Policy Term
10 15 20 25
10 66510 53780 44460 37395
20 68365 55480 46250 39420
30 69710 57965 50165 45335
40 78040 73220 76735 93265

Option B
Age Policy Term
10 15 20 25
10 63635 50275 40825 33810
20 63660 50285 40805 33730
30 63650 50210 40605 33325
40 63620 49935 39970 32370
50 63580 49430 38900 30585
The above premium is exclusive of taxes.
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b) Limited Premium :
The sample illustrative annual premiums for Basic Sum Assured of
Rs 1 lakh for Standard lives are as under:
Option 1
Age Policy Term
10 15 20 25
10 15925 12815 10585 8935
20 16010 12885 10645 9000
30 16050 12940 10710 9085
40 16290 13240 11030 9435
50 17240 14335 12180 10495
Option 2
Age Policy Term
10 15 20 25
40 16040 12965 10900 9435
50 16455 13410 11545 10310
The above premium is exclusive of taxes.
7. Modal Loading under Limited Premium:
Following Modal loading is applicable for Limited Premium Payment.
Mode Loading (as a % of Tabular
Premium)
Yearly mode Nil
Half-yearly mode 1.5%
Quarterly 2.5%
Monthly(NACH) and SSS
mode 3.0%
8. High Basic Sum Assured Rebate:
a) Under Single Premium:
Basic Sum Assured Reduction in Tabular premium
per Rs. 1000/- Basic Sum Assured
Term
10 to 20 21 to 25
Upto Rs. 1,75,000 Nil Nil
Rs. 2, 00,000 to Rs. 4, 50,000 25 35
Rs. 5, 00,000 to Rs. 9, 50,000 45 55
Rs 10,00,000 and above 50 60
b) Under Limited Premium Payment:
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Basic Sum Assured Reduction in Tabular premium
per Rs. 1000/- Basic Sum Assured
Term
10 to 20 21 to 25
Upto Rs. 1, 75,000 Nil Nil
Rs. 2, 00,000 to Rs. 4, 75,000 7 9
Rs. 5, 00,000 to Rs. 9, 50,000 9 11
Rs 10,00,000 and above 11 13
9. Rebate for Online sale:
For policies completed under online sales without any assistance
of Agent / intermediary shall be eligible for rebate at the following
rates:
Single Premium: 2% of tabular premium.
Limited Premium: 7% of tabular premium
10. Revival (Applicable for Limited Premium payment):
If the premium is not paid before the expiry of the days of grace, then
the policy will lapse. A lapsed policy can be revived during the lifetime
of the Life Assured, but within a period of 5 consecutive years from
the date of First Unpaid Premium and before the date of maturity,
as the case may be. The revival shall be effected, on payment of
all the arrears of premium(s) together with interest (compounding
half-yearly) at such rate as may be fixed by the Corporation from
time to time and on satisfaction of Continued Insurability of the Life
Assured on the basis of information, documents and reports that
are already available and any additional information in this regard if
and as may be required in accordance with the Underwriting Policy
of the Corporation at the time of revival, being furnished by the
Policyholder/Life Assured/Proposer.
The Corporation reserves the right to accept at original terms,
accept with modified terms or decline the revival of a discontinued
policy. The revival of a discontinued policy shall take effect only after
the same is approved, accepted and revival receipt is issued by the
Corporation.
The rate of interest applicable for revival under this plan for every
12 months’ period from 1st May to 30th April shall not exceed
10 year G-Sec Rate as p.a. compounding half-yearly as at the last
trading day of previous financial year plus 300 basis points. For the
12 months’ period commencing from 1st May, 2020 to 30th April,
2021 the applicable interest rate shall be 9.5% p.a. compounding
half-yearly.
Revival of rider(s), if opted for, will be considered along with revival
of the Base Policy, and not in isolation.
11. Paid-up Value (Applicable for Limited Premium payment):
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If less than two 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 from the date of First Unpaid
Premium and nothing shall be payable.
If, at least two full years’ premiums have been paid and any
subsequent premiums be not duly paid, the policy shall not be
wholly void, but shall subsist as a paid-up policy till the end of the
policy term.
The Sum Assured on Death under a paid-up policy shall be
reduced to such a sum, called ‘Death Paid-up Sum Assured’
and shall be equal to Sum Assured on Death multiplied by the ratio
of the total period for which premiums have already been paid
bears to the maximum period for which premiums were originally
payable.
The Sum Assured on Maturity under a paid-up policy shall be
reduced to such a sum called ‘Maturity Paid-up Sum Assured’
and shall be equal to Sum Assured on Maturity multiplied by the
ratio of the total period for which premiums have already been paid
bears to the maximum period for which premiums were originally
payable.
No loyalty addition is payable under paid up policy.
Rider shall not acquire any paid-up value and the rider benefits
cease to apply, if policy is in lapsed condition.
12. Surrender:
Under Single Premium payment, the policy can be surrendered
by the Policyholder at any time during the policy term. Under
Limited Premium payment, the policy can be surrendered by the
Policyholder at any time provided at least two full years’ premiums
have been paid. On surrender of the policy, the Corporation shall
pay the Surrender Value equal to higher of Guaranteed Surrender
Value or 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 under the policy shall be:
Under Single Premium:
• First policy year: 75% of the Single Premium
• Thereafter : 90% of the Single Premium
Under Limited Premium:
The Guaranteed Surrender Value payable under both Option 1 and
Option 2 during the policy term shall be equal to the total premiums
paid multiplied by the Guaranteed Surrender Value factors applicable
to total premiums paid. 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 as specified below:
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Single premium/Premium referred above shall not include taxes,
extra amount chargeable under the policy due to underwriting
decision and rider premium, if any.
LIC’s Bachat Plus
GSV Factors applicable to the total premiums paid for Limited Premium Option 1 & Option 2
Policy
Year
Policy Term
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
3 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00%
4 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
5 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
6 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
7 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
8 65.00% 60.00% 57.50% 56.00% 55.00% 54.29% 53.75% 53.33% 53.00% 52.73% 52.50% 52.31% 52.14% 52.00% 51.88% 51.76%
9 90.00% 70.00% 65.00% 62.00% 60.00% 58.57% 57.50% 56.67% 56.00% 55.45% 55.00% 54.62% 54.29% 54.00% 53.75% 53.53%
10 90.00% 90.00% 72.50% 68.00% 65.00% 62.86% 61.25% 60.00% 59.00% 58.18% 57.50% 56.92% 56.43% 56.00% 55.63% 55.29%
11 – 90.00% 90.00% 74.00% 70.00% 67.14% 65.00% 63.33% 62.00% 60.91% 60.00% 59.23% 58.57% 58.00% 57.50% 57.06%
12 – – 90.00% 90.00% 75.00% 71.43% 68.75% 66.67% 65.00% 63.64% 62.50% 61.54% 60.71% 60.00% 59.38% 58.82%
13 – – – 90.00% 90.00% 75.71% 72.50% 70.00% 68.00% 66.36% 65.00% 63.85% 62.86% 62.00% 61.25% 60.59%
14 – – – – 90.00% 90.00% 76.25% 73.33% 71.00% 69.09% 67.50% 66.15% 65.00% 64.00% 63.13% 62.35%
15 – – – – – 90.00% 90.00% 76.67% 74.00% 71.82% 70.00% 68.46% 67.14% 66.00% 65.00% 64.12%
16 – – – – – – 90.00% 90.00% 77.00% 74.55% 72.50% 70.77% 69.29% 68.00% 66.88% 65.88%
17 – – – – – – – 90.00% 90.00% 77.27% 75.00% 73.08% 71.43% 70.00% 68.75% 67.65%
18 – – – – – – – – 90.00% 90.00% 77.50% 75.38% 73.57% 72.00% 70.63% 69.41%
19 – – – – – – – – – 90.00% 90.00% 77.69% 75.71% 74.00% 72.50% 71.18%
20 – – – – – – – – – – 90.00% 90.00% 77.86% 76.00% 74.38% 72.94%
21 – – – – – – – – – – – 90.00% 90.00% 78.00% 76.25% 74.71%
22 – – – – – – – – – – – – 90.00% 90.00% 78.13% 76.47%
23 – – – – – – – – – – – – – 90.00% 90.00% 78.24%
24 – – – – – – – – – – – – – – 90.00% 90.00%
25 – – – – – – – – – – – – – – – 90.00%
No surrender value will be available on Rider(s), if any.
13. Policy Loan:
a) Under Single Premium:
Loan can be availed under this plan at any time during the policy term
after three months from completion of the policy (i.e. 3 months
from the Date of issuance of policy) or after expiry of the free-look
period, whichever is later subject to the terms and conditions as
the Corporation may specify from time to time. The maximum loan
that can be granted shall be 90% of the surrender value.
b) Under Limited Premium:
Loan shall be available under the policy provided, at least two full
years’ premiums have been paid and subject to the terms and
conditions as the Corporation may specify from time to time.
The maximum loan allowed under the policy, as a percentage of
Surrender Value shall be as under:
• For in-force policies – 90%
• For paid up policies – 80%
The interest rate to be charged for policy loan and as applicable for
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entire term of the loan shall be determined at periodic intervals.
The rate of loan interest applicable for full loan term, for the loan
to be availed under this product for every 12 months’ period
from 1st May to 30th April shall not exceed 10 year G-Sec Rate
p.a. compounding half-yearly as at the last trading date of previous
financial year plus 300 basis points. For loan sanctioned during 12
months’ period commencing from 1st May, 2020 to 30th April,
2021 the applicable interest rate shall be 9.5% p.a. compounding
half-yearly for entire term of the loan.
Any loan outstanding along with interest shall be recovered from
the claim proceeds at the time of exit.
14. Taxes:
Statutory Taxes, if any, imposed on such insurance plans by the
Government 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 applicable taxes, as per the prevailing rates, shall
be payable by the policyholder on premium(s) (for Base Policy and
Rider(s), if any) including extra premiums, if any, which shall be
collected separately over and above in addition to the premium(s)
payable by the policyholder.
The amount of Tax paid shall not be considered for the calculation
of benefits payable under the plan.
Regarding Income tax benefits/implications on premium(s) paid and
benefits payable under this plan, please consult your tax advisor for
details.
15. 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 (30 days if this policy is purchased online) from the date
of receipt of the policy bond stating the reason 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 Policy and Rider(s), if any)
for the period of cover, expenses incurred on medical examination,
special reports, if any and stamp duty charges.
16. Exclusion:
Suicide:
a) Under Single Premium
The policy shall be void if the Life Assured (whether sane or insane
at the time) commits suicide at any time within 12 months from
the date of commencement of the risk, an amount of 90% of the
Single Premium paid (excluding any taxes, extra premium and rider
premiums other than Term Assurance Rider premium, if any) shall
be payable. The Corporation will not entertain any other claim
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under the policy.
b) Under Limited Premium:
A Policy shall be void
1) If the Life Assured (whether sane or insane) commits suicide at
any time within 12 months from the date of commencement of
risk, the Corporation will not entertain any claim under the policy
except for 80% of the total premiums paid (excluding any taxes,
extra premium and rider premiums other than Term Assurance
Rider premium, if any), provided the policy is in-force.
2) If the Life Assured (whether sane or insane) commits suicide at
any time within 12 months from the date of revival, an amount which
is higher of 80% of the total premiums paid till the date of death
(excluding any taxes, extra premium and rider premiums other
than Term Assurance Rider premium, if any) or the surrender value
available as on the date of death shall be payable. The Corporation
will not entertain any other claim under the policy. This clause shall
not be applicable for a policy lapsed without acquiring paid-up value
and nothing shall be payable under such policies.
The suicide clause shall not apply in case of Life Assured whose age
at the time of entry is below 8 years.
SECTION 45 OF INSURANCE ACT, 1938:
The provision of Section 45 of the Insurance Act, 1938 shall be as
amended from time to time. The simplified version of this provision
is as under:
Provisions regarding policy not being called into question in terms of
Section 45 of the Insurance Act, 1938 are as follows:
1. No Policy of Life Insurance shall be called in question on any
ground whatsoever after expiry of 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy whichever is later.
2. On the ground of fraud, a policy of Life Insurance may be called
in question within 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy whichever is later.
For this, the insurer should communicate in writing to the insured
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or legal representative or nominee or assignees of insured, as
applicable, mentioning the ground and materials on which such
decision is based.
3. Fraud means any of the following acts committed by insured or
by his agent, with the intent to deceive the insurer or to induce the
insurer to issue a life insurance policy:
a. The suggestion, as a fact of that which is not true and which the
insured does not believe to be true;
b. The active concealment of a fact by the insured having knowledge
or belief of the fact;
c. Any other act fitted to deceive; and
d. Any such act or omission as the law specifically declares to be
fraudulent.
4. Mere silence is not fraud unless, depending on circumstances of
the case, it is the duty of the insured or his agent keeping silence to
speak or silence is in itself equivalent to speak.
5. No Insurer shall repudiate a life insurance Policy on the ground of
Fraud, if the Insured / beneficiary can prove that the misstatement
was true to the best of his knowledge and there was no deliberate
intention to suppress the fact or that such mis-statement of or
suppression of material fact are within the knowledge of the insurer.
Onus of disproving is upon the policyholder, if alive, or beneficiaries.
6. Life insurance Policy can be called in question within 3 years on
the ground that any statement of or suppression of a fact material
to expectancy of life of the insured was incorrectly made in the
proposal or other document basis which policy was issued or
revived or rider issued. For this, the insurer should communicate
in writing to the insured or legal representative or nominee or
assignees of insured, as applicable, mentioning the ground and
materials on which decision to repudiate the policy of life insurance
is based.
7. In case repudiation is on ground of mis-statement and not on
fraud, the premium collected on policy till the date of repudiation
shall be paid to the insured or legal representative or nominee or
assignees of insured, within a period of 90 days from the date of
repudiation.
8. Fact shall not be considered material unless it has a direct bearing
on the risk undertaken by the insurer. The onus is on insurer to
show that if the insurer had been aware of the said fact, no life
insurance policy would have been issued to the insured.
9. The insurer can call for proof of age at any time if he is entitled
to do so and no policy shall be deemed to be called in question
merely because the terms of the policy are adjusted on subsequent
proof of age of life insured. So, this Section will not be applicable
for questioning age or adjustment based on proof of age submitted
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subsequently.
[Disclaimer: This is not a comprehensive list of Section 45 of
the Insurance Act, 1938 and only a simplified version prepared
for general information. Policyholders are advised to refer to
Section 45 of Insurance Act, 1938, for complete and accurate
details.]
PROHIBITION OF REBATES (SECTION 41 OF INSURANCE
ACT, 1938):
1. No person shall allow or offer to allow, either directly or
indirectly, as an inducement to any person to take out or renew
or continue an insurance in respect of any kind of risk relating to
lives or property in India, any rebate of the whole or part of the
commission payable or any rebate of the premium shown on the
policy, nor shall any person taking out or renewing or continuing
a policy accept any rebate, except such rebate as may be allowed
in accordance with the published prospectuses or tables of the
insurer.
2. Any person making default in complying with the provisions
of this section shall be liable for a penalty which may extend to ten
lakh rupees.