LIC/M1/2022-23/06/Eng/SB/STA
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LIC’s AADHAAR STAMBH
(UIN:512N310V03)
(A Non-Linked, Participating, Individual,
Savings Life Insurance Plan )
LIC’s Aadhaar Stambh is a Non-Linked, Participating, Individual, Savings
Life Insurance plan designed exclusively for male lives, which offers a
combination of protection and savings. This plan provides financial support
for the family in case of unfortunate death of the policyholder any time
before maturity and a lump sum amount at the time of maturity for the
surviving policyholder.
In addition, this plan also takes care of liquidity needs through its Auto Cover
as well as loan facility.
1. Benefits:
a) Death Benefit:
Death benefit payable On death of the Life Assured during the policy term
provided policy is in-force (i.e. all due premiums have been paid) then:
On death during first five years: “Sum Assured on Death” shall be payable.
On death after completion of five policy years but before the date of
maturity: “Sum Assured on Death” and Loyalty Addition, if any, shall be
payable.
Where “Sum Assured on Death” is defined as the higher of
• 7 times of annualised premium; or
• 100% of Basic Sum Assured.
The death benefit shall not be less than 105% of total premiums paid
upto the date of death.
Premiums referred above shall not include any taxes, extra premium and
rider premium, if any.
b) Maturity Benefit:
On Life assured surviving to the end of the policy term, provided all due
premiums have been paid (i.e. 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 atleast 5 full
years’ premium 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. Under a paid-up policy, Loyalty Addition shall be payable for
the completed policy years for which the policy was in-force.
In addition, Loyalty Addition, if any, shall also be considered in Special
Surrender Value calculation on surrender of policy during the policy term,
provided the policy has completed five policy years and atleast 5 full years’
premium have been paid.
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2. Eligibility Conditions and Other Restrictions:
a) Minimum Basic Sum Assured per life* : ` 2,00,000
b) Maximum Basic Sum Assured per life* : ` 5,00,000
The Basic Sum Assured shall be in multiples of ` 5,000/- from Basic Sum
Assured ` 2,00,000 to ` 3,00,000/- and ` 25,000/- for Basic Sum Assured above
` 3,00,000/-
c) Minimum Age at entry 8 years (completed)
d) Maximum Age at entry 55 years (nearest birthday)
e) Policy Term 10 to 20 years
f) Premium Paying Term Same as Policy Term
g) Minimum Age at Maturity 18 years (completed)
h) Maximum Age at Maturity 70 years (nearest birthday)
Date of commencement of risk: Under this plan the risk will commence
immediately from the date of acceptance of the risk.
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.
* The total Basic Sum Assured under all policies issued to an individual under
this plan and under all policies issued in the earlier version of this plan shall
not exceed ` 5 lakh.
3. Options Available :
I. Rider Benefits:
The policyholder has an option of availing LIC’s Accident Benefit Rider
(UIN: 512B203V03) under this plan at any time under an inforce policy within
the policy term of the Base plan provided the outstanding policy term of
the base plan is atleast 5 years. The benefit cover under this rider shall be
available during the policy term. If this rider is opted for, in case of accidental
death, the Accident Benefit Sum Assured will be payable in lumpsum
The premium under this rider cannot exceed 100% of the premium under
the Base plan. The Rider Sum Assured cannot exceed the Basic Sum Assured
under the Base plan.
For more details on the above riders, refer to the rider brochure or contact
LIC’s nearest Branch Office.
II. Settlement Option for Maturity Benefit:
Settlement Option is an option to receive Maturity Benefit in instalments
over the chosen period of 5 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.
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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 modes of payments being as under:
Mode of Instalment payment Minimum Instalment amount
Monthly ` 5,000/-
Quarterly ` 15,000/-
Half-Yearly ` 25,000/-
Yearly ` 50,000/-
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 not lower than 5
year semi-annual G-Sec rate minus 2%; where, the 5 year semi-annual G-Sec
rate shall be as at last trading day of previous financial year.
Accordingly, for the 12 months’ period commencing from 1st May, 2022
to 30th April, 2023, the applicable interest rate for the calculation of the
instalment amount shall be 4.84% 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.
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:
a. If a Life Assured, who has exercised Settlement Option against Maturity Bene-
fit, 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).
b. The applicable interest rate that will be used to discount the future
instalment payments shall be annual effective rate not exceeding 5 year
Semi-annual G-Sec rate p.a. ; where, the 5 year Semi-annual G-Sec rate shall be
as at last trading day of previous financial year during which Settlement Option
was commenced.
Accordingly, for the 12 months’ period commencing from 1st May, 2022 to
30th April, 2023, the maximum applicable interest rate used for discounting the
future instalments shall be 6.33% p.a.
c. 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.
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III. Option to take Death Benefit in instalments:
This is an option to receive death benefit in instalments over the chosen
period of 5 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 instalment amount for
different modes of payments being as under:
Mode of Instalment payment Minimum instalment amount
Monthly ` 5,000/-
Quarterly ` 15,000/-
Half-Yearly ` 25,000/-
Yearly ` 50,000/-
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 not lower than 5 year
semi-annual G-Sec rate minus 2%; where, the 5 year semi-annual G-Sec rate
shall be as at last trading day of previous financial year.
Accordingly, for the 12 months’ period commencing from 1st May, 2022
to 30th April, 2023, the applicable interest rate for the calculation of the
instalment amount shall be 4.84 % p.a. effective. For exercising option to
take Death Benefit in instalments, the 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 regularly at yearly, half-yearly, quarterly or monthly intervals
(monthly premiums through NACH only) or through salary deductions over the
term of policy.
5. Grace Period
A grace period of 30 days will 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 premium which is payable along with
premium for base policy.
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6. Sample Illustrative Premium:
The sample illustrative annual premiums for Basic Sum Assured of ` 2 Lakh for
Standard lives are as under:
AGE/POLICY TERM 10 15 20
10 17,787/- 10,878/- 7,605/-
20 17,865/- 10,947/- 7,673/-
30 17,895/- 10,996/- 7,752/-
40 18081/- 11,260/- 8,105/-
50 18777/- 12,152/- 9,153/-
The above premium is exclusive of taxes.
7. Rebates:
Mode Rebate:
Yearly mode - 2% of Tabular Premium
Half-yearly mode - 1% of Tabular premium
Quarterly, Monthly (through NACH)
& Salary deduction - NIL
High Basic Sum Assured Rebate:
Basic Sum Assured (BSA) Rebate (`)
2,00,000 to 2,95,000 - Nil
3,00,000 to 3,75,000 - 0.50%o BSA
4,00,000 to 4,75,000 - 1.50%o BSA
5,00,000 - 2.5%o BSA
8. Revival:
If premiums are not paid within the grace period then the policy will lapse.
A lapsed policy can be revived within a period of 5 consecutive years from the
date of first unpaid premium but 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.
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
discontinued policy shall take effect only after the same is approved, accepted
and revival receipt is issued by the Corporation.
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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 p.a.
compounding half-yearly as at the last trading day of previous financial year
plus 3% or the yield earned on the Corporation’s Non-Linked Participating fund
plus 1%, whichever is higher. For the 12 months’ period commencing from
1st May, 2022 to 30th April, 2023 the applicable interest rate shall be 9.50% p.a.
compounding half-yearly. The basis for determination of interest rate for policy
revival are subject to change.
Revival of rider, if opted for, will be considered along with revival of the Base
Policy, and not in isolation.
The Revival Period and Auto Cover Period (as mentioned in Para 9 below) shall
run concurrently i.e. Auto Cover period does not extend period of revival.
9. Paid-up Policy:
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,after at least two full years’ premiums have been paid and any subsequent
premiums be not duly paid, the policy shall not be void but shall continue as a
paid-up policy till the end of the policy term. However, if at least three full year’s
premiums have been and any subsequent premiums be not duly paid, under
such policies Auto Cover Period as mentioned below shall be applicable.
Auto Cover Period:
“Auto Cover Period” under a paid-up policy shall be the period from due date of
first unpaid premium (FUP). The duration of Auto Cover Period shall be as under:
1. If at least three full years’ but less than five full years’ premiums have been paid
under a policy and any subsequent premium is not duly paid: Auto Cover
Period of six months shall be available.
2. If at least five full years’ premiums have been paid under a policy and any
subsequent premium is not duly paid: Auto Cover Period of two years shall be
available.
a) The benefits payable under a paid-up policy during Auto Cover Period shall be
as follows:
1. On death: Death benefit, as payable under an inforce policy, shall be paid after
deduction of (a) the unpaid premium(s) in respect of the base policy with interest
thereon upto the date of death, and (b) the balance premium(s) for the base policy
falling due from the date of death and before the next policy anniversary,
if any.
2. On maturity: The Sum Assured on Maturity under 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 i.e. [(Number of premiums
paid / Total Number of premiums payable) x (Sum Assured on Maturity)]. In
addition to the Maturity Paid-up Sum Assured, Loyalty Addition, if any, shall
also be payable on maturity.
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b) The benefits payable under a paid-up policy before the start of Auto
Cover Period and after the expiry of Auto Cover Period shall be as follows:
1. On death: 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 i.e. [Sum Assured on Death* (Num-
ber of premiums paid / Total number of premiums payable)]. In addition
to the Death Paid-up Sum Assured, Loyalty Addition, if any, shall also be
payable on death after the expiry of Auto Cover Period.
2. On maturity: The Sum Assured on Maturity under 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 i.e. [(Number of premiums
paid / Total Number of premiums payable) x (Sum Assured on Maturity)].In
addition to the Maturity Paid-up Sum Assured, Loyalty Addition, if any, shall
also be payable on maturity.
Under a Paid-up policy, Loyalty Addition , if any, shall be payable for the completed
policy years for which the policy was inforce, provided the premium have
been paid for atleast 5 full years and after completion of 5 policy years.
Rider shall not acquire any paid-up value and rider benefit cease to apply if
policy is in lapsed condition.
10. Surrender:
The policy can be surrendered at any time provided premiums have been paid
for atleast two consecutive years. On surrender of the policy, the Corporation
shall pay the Surrender Value equal to higher of Guaranteed Surrender Value and
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 during the policy term shall be equal
to the total premiums paid (excluding extra premiums, taxes and premium for
rider, if opted for) multiplied by the Guaranteed Surrender Value factor applica-
ble to total premiums paid under the policy.
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 specified
as below:
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Guaranteed Surrender Value factors applicable to total premiums paid
Policy Term
Policy Year 10 11 12 13 14 15 16 17 18 19 20
1 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%
3 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%
5 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%
7 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%
9 90.00% 70.00% 65.00% 62.00% 60.00% 58.57% 57.50% 56.67% 56.00% 55.45% 55.00%
10 90.00% 90.00% 72.50% 68.00% 65.00% 62.86% 61.25% 60.00% 59.00% 58.18% 57.50%
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11 90.00% 90.00% 74.00% 70.00% 67.14% 65.00% 63.33% 62.00% 60.91% 60.00%
12 90.00% 90.00% 75.00% 71.43% 68.75% 66.67% 65.00% 63.64% 62.50%
13 90.00% 90.00% 75.71% 72.50% 70.00% 68.00% 66.36% 65.00%
14 90.00% 90.00% 76.25% 73.33% 71.00% 69.09% 67.50%
15 90.00% 90.00% 76.67% 74.00% 71.82% 70.00%
16 90.00% 90.00% 77.00% 74.55% 72.50%
17 90.00% 90.00% 77.27% 75.00%
18 90.00% 90.00% 77.50%
19 90.00% 90.00%
20 90.00%
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11. Policy Loan:
Loan can be availed during the policy term provided atleast two full years’
premiums have been paid and subject to the terms and conditions as the
Corporation may specify from time to time.
The interest rate to be charged for policy loan and as applicable for 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 policy 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 3% or the yield earned on the Corporation’s Non-Linked Participating
Fund plus 1%, whichever is higher. For loan sanctioned during 12 months’ period
commencing from 1st May, 2022 to 30th April, 2023 the applicable interest rate
shall be 9.50% p.a. compounding half-yearly for entire term of the loan. The basis
of determination of applicable loan interest for policy loan are subject to change
The maximum loan as a percentage of surrender value shall be as under:
For inforce policies – upto 90%
For paid-up policies – upto 80%
Any loan outstanding along with interest shall be recovered from the claim
proceeds at the time of exit.
12. 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 premiums payable (for base policy and rider, if any including
extra premiums, 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.
Regarding, Income tax benefits/implications on premium(s) paid and benefits
payable under this plan, please consult your tax advisor for details.
13. 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 electronic or physical mode of the policy bond, whichever is earlier,
stating the reasons for 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, charges for medical examination, special reports, if any and stamp duty
charges.
14. Exclusion:
Suicide: -
i. If the Life Assured (whether sane or insane) commits suicide at any time
within 12 months from the date of commencement of risk, the nominee or
beneficiary of the Life Assured shall be entitled to 80% of the total premiums
paid, provided the policy is inforce.
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ii. If the Life Assured (whether sane or insane) commits suicide within 12
months from date of revival, an amount which is higher of 80% of the
premiums paid till the date of death or the Surrender Value available as
on date of death, shall be payable. The nominee or beneficiary shall not be
entitled to any other claim under this policy.
This clause shall not be applicable for a policy lapsed without acquiring
paid-up value and nothing shall be payable under such policy.
Note: Premiums referred above shall not include any taxes, extra premium
and any rider premium
BENEFIT ILLUSTRATION:
Age of the life assured (Nearer Birthday) 35 Years
Policy Term 20 Years
Premium Payment Mode Yearly
Basic Sum Assured ` 2,00,000
Premium (Excluding Taxes) ` 7,869
Benefits available under different scenarios:
(Amount in `)
End Total Gauranteed Non-Guaranteed Total Maturity Total Death Benefit
of Premiums Benefits Benefits Benefit including including Loyalty
Year paid till the (Loyalty Addition) Loyalty Addition, Addition, if any
end of if any
the year Sum Sum Scenario Scenario Scenario Scenario Scenario Scenario
Assured Assured 1 2 1 2 1 2
on on Death
Maturity
5 39345 0 200000 0 0 0 0 200000 200000
10 78690 0 200000 0 13000 0 0 200000 213000
15 118035 0 200000 0 23000 0 0 200000 223000
20 157380 200000 200000 0 33000 200000 233000 200000 233000
Disclaimer:
i) This illustration is applicable to a standard (from medical, life style and
occupation point of view) life wherein any riders is not opted.
ii) Some benefits are guaranteed and some benefits which are Non Guaranteed
benefits with returns based on the future performance are show for two
different rates of assumed future investment returns.
iii) The non-guaranteed benefits in above illustration are calculated so
that they are consistent with the Projected Investment Rate of Return
assumption of 4% p.a. (Scenario 1) and 8% p.a. (Scenario 2).
In other words, in preparing this benefit illustration, it is assumed that the
Projected Investment Rate of Return that LICI will be able to earn
throughout the term of the policy will be 4% p.a. or 8% p.a., as the case
may be. The Projected Investment Rate of Return is not guaranteed and
they are not the upper or lower limits of what you might get back, as the
value of your policy is dependent on a number of factors including actual
future investment performance
iv) The main objective of the illustration is that the client is able to appreciate
the features of the product and the flow of benefits in different circum-
stances with some level of quantification.
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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 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
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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 and only a simplified version prepared for
general information. Policyholders are advised to refer to Section 45
of the Insurance Act, 1938, for complete and accurate details.]
Prohibition of Rebates (Section 41 of the 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 con-
tinuing 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.
Various Sections of the Insurance Act, 1938 applicable to LIC to apply
as amended from time to time.
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This product brochure gives only salient features of the plan.
For further details please refer to the Policy document on our
website www.licindia.in or contact our nearest Branch Office.
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/FRAUDULENT
OFFERS
IRDAI is not involved in activities like selling insurance policies,
announcing bonus or investment of premiums. Public receiving such
phone calls are requested to lodge a police complaint.
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Registered Office:
Life Insurance Corporation of India
Central Office, Yogakshema,
Jeevan Bima Marg, Mumbai – 400021.
Website: www.licindia.in
Registration Number: 512
