LIC’s Tech Term

If a lapsed policy is not revived within the revival period but
before the date of Maturity, the policy will automatically
terminate. In case of Regular Premium policies, nothing shall
be payable. However, in case of Limited Premium Payment
policies, the amount as payable in case of surrender shall be
refunded and the policy will terminate.
Revival of rider, if opted for, will be considered along with
revival of the Base Policy, and not in isolation.
9. Surrender Value:
No surrender value will be available under this Plan.
However on surrender of policy in the following cases (for
both Level Sum Assured (Option I) as well as Increasing Sum
Assured (Option II) options), an amount shall be refunded
as under:
a) Regular Premium policies: Nothing shall be refunded.
b) Single Premium Policies: Applicable refund shall be
payable anytime during the Policy Term.
c) Limited Premium Payment: Applicable refund shall only
be payable if full premiums have been paid for at least:
i) Two consecutive years in case of premium paying
term less than 10 years.
ii) Three consecutive years in case of premium paying
term of 10 years or more.
In case of a lapsed policy, refund shall be payable
only during the revival period on request by the
policyholder. However, on expiry of revival period
the policy shall terminate and refund shall be paid
to the policyholder.
10. Policy Loan:
No loan will be available under this plan.
11. Taxes:
i. 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 any applicable taxes, as per the
prevailing rates, shall be payable by the policyholder on
premium(s) 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.
ii. Regarding Income tax benefits/implications on
premium(s) paid and benefits payable under this plan,
please consult your tax advisor for details.
12. 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 30 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 rider, if
any) for the period of cover, expenses incurred on medical
examination, special reports, if any, and stamp duty charges.
13. Suicide Exclusion:
(i) Under Single premium policy:
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, the Corporation will not entertain any other
claim except for 90% of the Single Premium paid.
(ii) Regular /Limited Premium Payment policy:
This policy shall be void if the Life Assured (whether
sane or insane) commits suicide at any time within
12 months from the date of commencement of risk,
provided the policy is in force or within 12 months from
the date of revival, the Corporation will not entertain
any claim except for 80% of the premiums paid till the
date of death.
This clause shall not be applicable for a lapsed policy as
nothing is payable under such policies.
Note: Single Premium/ Premium referred above shall not
include any taxes, extra amount if charged under the policy
due to underwriting decision and any rider premium.
14. How to purchase LIC’s Tech-Term:
Step-by-step process to buy LIC’s Tech-Term Online:
1) Log-on to our website (www.licindia.in) for buying this
online product. Click on ‘Buy Policies Online’. Select plan
LIC’s Tech-Term.
2) Click on ‘Buy Online’. Choose your desired Sum Assured,
Sum Assured option (Level/Increasing), Policy Term,
Premium Payment option (Regular/Limited/Single)
and Premium Payment Mode (Yearly/Half-yearly) for
Regular and Limited Premium Payment option, Date of
Birth, Gender and Smoking status.
3) After filling in the details, a premium calculator will
calculate the premium for the chosen parameters.
4) Enter other details such as Name, Address, Occupation,
Qualification etc. displayed on the screen and complete
the proposal form online.
5) Pay premium online and fulfil the underwriting
requirements, if any.
Section 45 of the 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, as amended
by Insurance Laws (Amendment) Act, 2015 are as follows:
1. No Policy of Life Insurance shall be called in question on
any ground whatsoever after expiry of 3 yrs 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 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 subsequently.

[Disclaimer: This is not a comprehensive list of Section 45
of the Insurance Act, 1938, as amended by the Insurance
Laws (Amendment) Act, 2015 and only a simplified version
prepared for general information. Policyholders are advised
to refer to the Insurance Laws (Amendment) Act, 2015, for
complete and accurate details.]
Prohibition of Rebates (Section 41 of the Insurance Act,
1938 as amended by the Insurance Laws (Amendment)
Act, 2015)
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.