\n

Q1. What is the
\nnature of the scheme?<\/strong><\/p>\n

 The scheme will be a one year cover Term Life Insurance
\nScheme, renewable from year to year, offering life insurance cover for death
\ndue to any reason.<\/p>\n

 Q2. What would be the
\nbenefits under the scheme and premium payable?<\/strong><\/p>\n<\/p>\n

 Rs.2
\nlakhs is payable on a subscriber\u2019s death due to any reason. The premium payable
\nis Rs.330\/- per annum per subscriber.<\/p>\n

 Q3. How will the
\npremium be paid?<\/strong><\/p>\n<\/p>\n

 The
\npremium will be deducted from the account holder\u2019s savings bank account through
\n\u2018auto debit\u2019 facility in one installment, as per the option to be given on
\nenrolment.<\/p>\n

 Members
\nmay also give one-time mandate for auto-debit every year till the scheme is in
\nforce, subject to re-calibration that may be deemed necessary on review of
\nexperience of the scheme from year to year.<\/p>\n

 Q4. Who will offer \/
\nadminister the scheme?<\/strong><\/p>\n

 The
\nscheme would be offered \/ administered through LIC and other Life Insurance
\ncompanies willing to offer the product with necessary approvals on similar
\nterms, in collaboration with participating Banks. Participating banks will be
\nfree to engage any such life insurance company for implementing the scheme for
\ntheir subscribers.<\/p>\n

 Q5. Who will be
\neligible to subscribe?<\/strong><\/p>\n

 All
\nsavings bank account holders in the age 18 to 50 years in participating banks
\nwill be entitled to join. In case of multiple saving bank accounts held by an
\nindividual in one or different banks, the person would be eligible to join the
\nscheme through one<\/strong> savings bank account only.<\/p>\n

\n

 Q6. What is the
\nenrolment period and modality?<\/strong><\/p>\n

 Initially
\non launch for the cover period from 1^{st<\/sup> June
\n2015 to 31st<\/sup> May 2016 subscribers are expected to
\nenroll and give their auto-debit option by 31st<\/sup> May
\n2015, extendable up to 31st<\/sup> August 2015.
\nEnrolment subsequent to this date will be possible prospectively on payment of
\nfull annual payment and submission of a self-certificate of good health.<\/p>\n}

\n

 Subscribers
\nwho wish to continue beyond the first year will be expected to give their
\nconsent for auto-debit before each successive May 31^{st<\/sup> for
\nsuccessive years. Delayed renewal subsequent to this date will be possible on
\npayment of full annual premium and submission of a self-certificate of good
\nhealth.<\/p>\n}

\n

 Q7.
\nCan eligible individuals who fail to join the scheme in the initial year join
\nin subsequent years?<\/strong><\/p>\n

 Yes,
\non payment of premium through auto-debit and submission of a self-certificate
\nof good health. New eligible entrants in future years can also join
\naccordingly.<\/p>\n

 Q8.
\nCan individuals who leave the scheme rejoin?<\/strong><\/p>\n

 Individuals
\nwho exit the scheme at any point may re-join the scheme in future years by
\npaying the annual premium and submitting a self declaration of good health.<\/p>\n

\n

 Q9.
\nWho would be the Master policy holder for the scheme?<\/strong><\/p>\n<\/div>\n

\n

 Participating
\nBanks will be the Master policy holders. A simple and subscriber friendly
\nadministration & claim settlement process shall be finalized by LIC \/
\nchosen insurance company in consultation with the participating bank.<\/p>\n

\n

 Q10. When can the
\nassurance on life of the member terminate?<\/strong><\/p>\n

 The
\nassurance on the life of the member shall terminate \/ be restricted accordingly
\non any of the following events:<\/p>\n

 i.       
\nOn attaining age 55 years (age near birth
\nday), subject to annual renewal up to that date (entry, however, will not be
\npossible beyond the age of 50 years).<\/p>\n

 ii.       
\nClosure of account with the Bank or
\ninsufficiency of balance to keep the insurance in force.<\/p>\n

 iii.       
\nIn case a member is covered through more than
\none account and premium is received by LIC \/ insurance company inadvertently,
\ninsurance cover will be restricted to Rs. 2 Lakh and the premium shall be
\nliable to be forfeited.<\/p>\n

 Q11. What will be the
\nrole of the insurance company and the Bank?<\/strong><\/p>\n

 i.       
\nThe scheme will be administered by LIC or any
\nother Life Insurance company which is willing to offer such a product in
\npartnership with a bank \/ banks.<\/p>\n

 ii.       
\nIt will be the responsibility of the
\nparticipating bank to recover the appropriate annual premium in one
\ninstallment, as per the option, from the account holders on or before the due
\ndate through \u2018auto-debit\u2019 process and transfer the amount due to the insurance
\ncompany.<\/p>\n

 iii.       
\nEnrollment form \/ Auto-debit authorization \/
\nConsent cum Declaration form in the prescribed proforma, as required, shall be
\nobtained and retained by the participating bank. In case of claim, LIC \/
\ninsurance company may seek submission of the same. LIC \/ Insurance Company also
\nreserve the right to call for these documents at any point of time.<\/p>\n

 Q12. How would the
\npremium be appropriated?<\/strong><\/p>\n

 a.   
\nInsurance Premium to LIC \/other insurance
\ncompany: Rs.289\/- per annum per member;<\/p>\n

 b.   
\nReimbursement of Expenses to
\nBC\/Micro\/Corporate\/Agent : Rs.30\/- per annum per member;<\/p>\n

c.   
\nReimbursement of Administrative expenses to
\nparticipating Bank: Rs.11\/- per annum per member.<\/p>\n

Q13. Will this cover be in addition to cover
\nunder any other insurance scheme the subscriber may be covered under?<\/strong><\/p>\n

\n

Yes.<\/p>\n

Source:RBI<\/p>\n","protected":false},"excerpt":{"rendered":"

Q1. What is the nature of the scheme?  Q2. What would be the benefits under the scheme and premium payable?  Q3. How will the premium be paid?  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 … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[14],"tags":[205],"class_list":["post-1299","post","type-post","status-publish","format-standard","hentry","category-investment","tag-bima-yojana"],"yoast_head":"\n