Академический Документы
Профессиональный Документы
Культура Документы
Benefits
Features
1) General contract
Since life insurance contract is a sort of contract it is
governed by the Indian contract act. According to section
10 of Indian contract act, 1872 a valid contract must have
the following essentials
Offer and acceptance
Legal consideration
Competent to make contract
Free consent
Legal object
2) Insurable interest
The insured must have an insurable interest in the life to be
insured for a valid contract. Insurable interest arises out of
pecuniary relationship that exists between the policy holder
and the life insured
Insurable interest in life insurance may be divided into 2
categories:
-insurable interest in owns life
-insurable interest in others life
4) Warranties
Warranties are integral part of contract. They form the
bases of the contract between the proposer and the insurer
and if any statement whether material or non-material, is
untrue the contract shall be null and void and the premium
paid by him may be forfeited by the insurer.
6) Return of premium
Types
Life insurance may be divided into two basic classes
temporary and permanent or following subclasses term,
universal, whole life and endowment life insurance.
Term Insurance
Term assurance provides life insurance coverage for a
specified term of years in exchange for a specified
premium. The policy does not accumulate cash value.
Term is generally considered "pure" insurance, where the
premium buys protection in the event of death and nothing
else.
3. Medical examination
For life insurance the proposer has to get himself examined
medically from the approved doctor of the insurance
company.
4. Scrutiny of proposal
The proposal form and the medical report are examined by
the officers of the LIC. This is necessary before the final
approval of proposal.
5. Acceptance of proposal
If the medical report is favorable, the proposal is generally
accepted and the decision is communicated to concerned
party.
Settlement of claim
Settlement of claim is necessary in the case of each and
every life policy. The important steps in the procedure of
making claims are as follows:
a) Submission of claim form along with the proof of
death
When the policy becomes mature for payment, the claim
for payment must be made either by the assured himself or
by his family members in case of death. Death certificate is
not required in case of maturity of policy during life time
of policy holder.
b) Proof of title
The person claiming the amount has to furnish the proof of
his title to the amount of the policy holder
c) Proof of age
This proof of age is necessary if the age of the assured was
not admitted earlier ie at the time of taking out an
insurance policy. Such certificate can be obtained from the
municipal authorities easily.
d) Making payment
The LIC examines the claims well as the documents and
make the final payment to concerned party. If the policy
4) INVESTMENT OF FUNDS
The plan offers following two funds detailed below:
The policyholder has the option to choose any ONE out of
the above 2 funds
FUND INVT.IN
SHORT INVT.
TYPE GOVT.SECURTIES TERM LISTED
INVT. IN
EQUITY
SHARES
Debt
Not less than 60%
Not
Nil
fund
more
than
40%
Mixed Not less than 45%
Not
Not less
fund
more
than 15%
than
&
40%
Not less
than 35%
RISK
INVOLVED
Low risk
Steady
income-lower
to medium
risk
Discontinuance
charges for the
policies having
annualized premium
up to Rs. 25,000/Lower of 10% * (AP or
FV) subject to a
maximum of Rs. 2500/-
Discontinuance
charges for the policies
having annualized
premium above Rs.
25,000/Lower of 6% * (AP or
FV) subject to
maximum of Rs. 6000/-
4
5 and onwards
NIL
AP Annualised Premium
FV Policyholders Fund Value excluding the fund
value in respect of Top-up premiums paid, if any, on the
date of discontinuance.
C) Right to revise charges: The Corporation reserves the
right to revise all or any of the above charges except the
premium allocation charge, with the prior approval of
IRDA.
Although the charges are reviewable, they will be subject
to the following maximum limit:
In case the policyholder does not agree with the revision of
charges the policyholder shall have the option to withdraw
the Policyholders fund value which shall be utilized to
provide an annuity.
7. Discontinuance of Premiums: If you fail to pay
premiums under the policy within the days of grace, a
notice shall be sent to you within a period of fifteen days
from the date of expiry of grace period to exercise one of
the following options within a period of thirty days of
receipt of such notice:
1. Revival of the policy, or
2. Complete withdrawal from the policy
vi) Revival: If due premium is not paid within the days of grace,
a notice shall be sent to you within a period of fifteen days from
the date of expiry of grace period to exercise the option for revival
within a period of thirty days of receipt of such notice.
N.G.ACHARYA &
D.K.MARATHE COLLEGE
Subject: Innovation In Banking And
Insurance
Topic:
Life Insurance
Class:
Group members
Name
Roll no
Mridula
33
Babeeta Rawat
34
Ashwini Sable
35
Abhishek Sakpal
36
Kiran Sawant
37