Q1. What is the
nature of the scheme?
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.
Q2. What would be the
benefits under the scheme and premium payable?
Rs.2
lakhs is payable on a subscriber’s death due to any reason. The premium payable
is Rs.330/- per annum per subscriber.
Q3. 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
enrolment.
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.
Q4. 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.
Q5. 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.
Q6. 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.
Q7.
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.
Q8.
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.
Q9.
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.
Q10. 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.
Q11. 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.
Q12. 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.
Q13. Will this cover be in addition to cover
under any other insurance scheme the subscriber may be covered under?
Yes.
Source:RBI
