Policy No.
GCLI/ Annexure-V
LIFE INSURANCE CORPORATION OF INDIA
(Established by the Life Insurance Corporation Act, 1956)
Registration Number: 512
Pension and Group Schemes Department
Divisional Office, ______________
LIC’s GROUP CREDIT LIFE INSURANCE (WITHOUT PROFIT)
(UIN: 512N302V01)
Part A –
(i) Forwarding letter with Free look clause:
Ref: NB Unit Code / Unit Name:
______________________ Date:
______________________
______________________
______________________
Dear Policyholder,
Re: Policy No.______________
We have pleasure to forward herewith the policy document for the above plan, which please find in order.
Free Look Period: We would request you to go through the terms and conditions of the policy and in case
you disagree to any of the terms and conditions of the policy, as per IRDA (Protection of Policyholder’s
Interest) Regulations, 2002, you may return the policy within a period of 15 days from the date of receipt of
the Policy Document stating the reasons of your objections and disagreement. On receipt of the policy, the
Policy shall be cancelled and the amount of premiums deposited by you shall be refunded to you after
deducting the proportionate risk premium for the period on cover and charges for medical examination,
special reports, if any and stamp duty.
We would also like to draw your kind attention to the information mentioned in the Schedule of the Policy
Document and the benefits available under this Policy.
If you find error in this document you may return the policy for corrections.
Thanking you,
Yours faithfully,
p. Manager (P&GS)
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Policy No. GCLI/ Annexure-V
(ii) Policy Preamble:
THE LIFE INSURANCE CORPORATION OF INDIA (hereinafter called “the Corporation”) having received a
Proposal and Declaration and the first premium from _____________________(hereinafter called "the
Master Policyholder"), whose office is situated at________________ being the policyholder for this group
insurance policy for providing benefits as described in the Rules of the aforesaid group insurance scheme
(certified copy of which Rules has been furnished to the Corporation by the Master Policyholder), which Rules
together with the aforesaid proposal are hereby declared to be the basis of this policy.
The Master Policyholder has also furnished to the Corporation statements as asked for by the Corporation
completed and signed by the Master Policyholder and by the persons for whose benefit the insurance cover
hereunder are being effected.
The Master Policyholder has further agreed to pay the premiums as required in accordance with the
provisions hereof and to furnish such statements and information as is material to the contract as may be
required by the Corporation which statements and information together with the application, Rules and all
statements referred above and any other statements or information already furnished and to be furnished by
the Master Policyholder as provided hereunder giving all the variations in the particulars of the members in
so far as such variations have any bearing on the insurance cover effected hereunder from time to time, the
Master Policyholder has agreed, shall be and are hereby declared to be the basis of this Policy.
It is hereby also declared that this policy shall be subject to the Definitions, Premiums and Benefits,
Conditions related to Servicing Aspects and Other Terms and Conditions and Statutory Provisions printed on
the back hereof and the following Schedule and every endorsement placed on the policy by the Corporation
shall be deemed to be a part of this Policy.
(iii) Policy Schedule:
1. Policy No.
2. Proposal No.
3. Date of Commencement of
Policy (DOC)
4. Name of Master Policyholder
5. Registered Address of Master
Policyholder
6. Name of the scheme
7. Type of group
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Policy No. GCLI/ Annexure-V
8. Entry age Minimum entry age:18 years (age last birthday)
Maturity Age Maximum entry age: 60 years (age nearer birthday)
Maximum Maturity Age: 65years(age nearer birthday)
9. Type of scheme Lender- Borrower Scheme(A) / Lender- Borrower Scheme(B)
10. Policy Term Minimum policy term: 5 years
Maximum policy term: 35 years
11. Moratorium period Minimum Moratorium period: 0 Years
Maximum Moratorium period: 5 years
12. Total no. of Members as on
DOC of policy
13. Death Benefit As per Risk Cover Schedule to be provided in respect of
each member
14. Total Single Premium at DOC
15. Total Sum Assured at DOC
Note: Conditions mentioned under Para 6 of Part F (General Terms and Conditions) shall only apply if the
schemes are covered under Lender-Borrower scheme (A).
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Policy No. GCLI/ Annexure-V
PART – B: DEFINITIONS
The definitions of terms/words used in this policy document are as under:
1. Age Age is the age nearest birthday of the member on Entry Date except
for age 18 years for which the age is in completed years.
2. Corporation Life Insurance Corporation of India established under Section 3 of LIC
Act, 1956.
3. Certificate of Insurance It is the document issued to individual members of the Master
Policyholder which contains the Risk Cover Schedule along with the
terms and conditions of the policy.
4. Credit Account It is the document in respect of each member under the Lender -
Statement Borrower schemes(A) containing the information such as name of the
Master policyholder, Master Policy number, name of member, date of
Commencement of Risk, Sum Assured, Original amount of loan
particulars of recoveries made by the Master policyholder towards the
loan, Outstanding Loan Balance as on the date of happening on a
contingent event covered under the policy, balance claim Amount
(difference between the Sum Assured and Outstanding Loan Balance)
payable to the insured on surrender or to the nominee of the deceased
member in case of death.
5. Date of The date from which this policy takes effect.
Commencement of
Policy
6. Death Benefit The benefit as per the Risk Cover Schedule for each member, agreed at
the inception of the contract, which is payable on death of the
member.
7. Endorsement The Conditions attached/ affixed to this Policy incorporating any
amendments or modifications agreed to or issued by the Corporation
and forming part of the contract.
8. Entry date In respect of a member the day on which he/she joins the scheme after
underwriting acceptance of proposal and receipt of premium in respect
of that member. This date has also been referred to as “Date of
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Policy No. GCLI/ Annexure-V
Commencement of Risk” in suicide clause under this policy.
9. Free look Period It is the period of 15 days from the date of receipt of the policy
document/Certificate of Insurance to review the terms and conditions
of the policy and where the Master Policyholder/ Member disagrees to
any of those terms and conditions, he/she has the option to return this
policy or the Certificate of Insurance as the case may be and cancel the
contract.
10. IRDAI Means Insurance Regulatory Development Authority of India earlier
called as Insurance Regulatory and Development Authority (IRDA).
11. Lender-Borrower The schemes which are administered by any of the following entities
Schemes (A)
1. Reserve Bank of India (RBI) Regulated Scheduled Commercial
Banks.
2. NBFCs having Certificate of Registration from RBI
3. National Housing Bank (NHB) Regulated Housing Finance
Companies.
12. Lender-Borrower The schemes which are not administered by the entities as mentioned
Schemes (B) in Para 11.
13. Loan interest rate The rate of interest on the loan granted to the members of the Master
Policyholder. This rate is referred for determining the Interest Rate for
“Risk Cover Schedule” defined below.
14. Loan term The period during which the loan is repayable by the members.
15. Master Policyholder It is the institution/Bank which has entered into a contract with the
Corporation for providing insurance cover to Members of this Policy.
16. Material information It is the information already known to the member at the entry date
which has a bearing on underwriting of the member’s insurance cover.
17. Member A loan borrower of the Master Policyholder who is admitted to the
benefits of this Policy i.e. on whose life an insurance cover has been
effected according to the rules.
18. Moratorium period Period during which loan interest or principal amount of loan or both
are not repayable as per the terms and conditions of the loan during
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Policy No. GCLI/ Annexure-V
the term of the loan.
19. Nomination The process of nominating a person who is named as “Nominee” in the
proposal form or subsequently included/changed by an endorsement.
Nomination should be in accordance with provisions of Section 39 of
the Insurance Laws (Amendment) Act, 2015 as amended from time to
time.
20. Nominee The person who is duly nominated by the member and has right to give
a valid discharge to the policy monies in case of the death of the
member before the maturity of the policy.
21. Non-participating Policies which are not entitled for any share in surplus (profits)
emerging during the policy term in accordance with the terms and
conditions of the policy.
22. Outstanding Loan It consists of the outstanding principal amount out of the total loan
Balance amount granted by the Master Policyholder to a member along with
outstanding interest amount at any point of time during the term of
loan calculated at the loan interest rate.
23. Policy/Policy Document The document along with endorsements, if any, issued by the
Corporation to the Master Policyholder which is a legal contract
between the Master Policyholder(covering all member) and the
Corporation.
24. Policy Term It is the period in years during which the contractual benefits are
payable in respect of a member.
25. Premium The contractual amount payable in respect of each member by the
Policyholder to secure the benefits under this policy.
26. Premium rate Age and term wise Single premium rate for any particular Risk Cover
Schedule of a member.
27. Interest Rate for Risk The interest rate agreed between Master Policyholder and the
Cover Schedule Corporation which is used to generate the Risk Cover Schedule for a
member.
28. Register It is the document, including in electronic form, containing details of
members under the scheme as provided by the Master Policyholder
kept by the Corporation and which shall be deemed to form part of the
contract.
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Policy No. GCLI/ Annexure-V
29. Risk Cover Schedule It shows the amount (sum assured) payable on death of a member at
each duration during the policy term. The amount of Sum Assured
shall be the Schedule Loan balance as on the policy anniversary
preceding the death. The Risk Cover Schedule shall vary for members
of the Master Policyholder depending on the following information
provided in the consent form
• the loan amount;
• loan term/policy term;
• Interest Rate for Risk Cover Schedule ;
• moratorium period of the loan, if any; and
• nature of repayment i.e. how principal and interest are repaid,
in respect of each member.
30. Scheme Rules / Rules The rules of the scheme, for the time being inforce and as amended
from time to time, governing the details of benefit structure, timing of
benefit payments, eligibility conditions and other terms and conditions
specific to the scheme. The scheme can be set under trust or under
contract.
31. Schedule Loan Balance It is the notional loan amount at the beginning of each policy year
during the policy term calculated at the “Interest Rate for Risk Cover
Schedule”. This shall be the Death benefit during each policy year.
32. Sum Assured The amount of insurance cover to be payable on death of a member as
death benefit. The quantum of sum assured at each duration shall be
as per the Risk Cover Schedule in respect of a member.
33. Surrender Complete withdrawal / termination of the Policy or the contract in
respect of a member during the term.
34. Surrender Value An amount, if any, that becomes payable in case of surrender in
accordance with the terms and conditions of the policy.
35. UIN The Unique Identification Number allotted to this plan by IRDAI.
36. Underwriting The term used to describe the process of assessing risk and ensuring
that the cost of the cover is proportionate to the risks faced by the
individual concerned. Based on underwriting, a decision on acceptance
or rejection of cover as well as applicability of suitable premium or
modified terms, if any, is taken.
The terms ‘herein’, hereafter’, hereinafter’, ‘hereof’, ‘hereto’, and ‘hereunder’ used wherein in the policy
refer to the policy in its entirety.
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Policy No. GCLI/ Annexure-V
Part C – BENEFITS AND PREMIUM CONDITIONS
1. Death Benefit: On death of the member during the policy term Sum Assured as per the Risk Cover
Schedule shall be payable.
2. Maturity Benefits: On member surviving to the end of the policy term, nothing shall be payable.
3. Premiums: The single premium payable for the insurance cover in respect of each of the Member on the
Date of Commencement of this Policy shall depend on the risk characteristics of the Scheme.
4. Participation in the Profits of the Corporation: This is a non -participating plan. Hence the plan shall not
be eligible for the profit/s of the Corporation.
PART – D: CONDITIONS RELATED TO SERVICING ASPECTS
1. All monies payable to or by the Corporation hereunder shall be paid at the Divisional Office of the
Corporation in ________, in Indian Rupees and the insurance cover effected hereunder shall be
expressed in Indian Rupees.
2. An existing loan borrower who has not become member of the Master Policyholder on the Date of
Commencement of the policy may join the scheme within 6 month from the date of commencement of
the policy. However, admission to the scheme shall be subject to satisfaction of underwriting
requirement of the Corporation. Members joining subsequently shall become entitled to the benefits
under this Policy from Entry Date.
3. For any scheme where Master Policyholder is not the employer of the members covered under the
scheme, the Master Policyholder shall obtain a consent letter from an individual before admitting him/
her to the policy. The consent letter shall be submitted to the Corporation at the time of lodging of claim
by the Master Policyholder.
4. If the Master Policyholder does not include new loan borrower in any month by payment of premium the
Master Policyholder shall not be entitled to include that loan borrower except with the prior consent of
the Corporation and subject to such conditions as may be imposed by the Corporation.
5. On proof of the happening of the contingency stated herein, the Corporation will pay through the Master
Policyholder for the benefit of the person or persons concerned the sum assured as per the risk cover
schedule.
For Lender-Borrower Schemes (A), the benefit shall be payable as mentioned in condition 6 (iv) of part F.
6. No policy loan is available under this policy.
7. No changes in the insurance cover shall be allowed after issuance of the policy. Hence any alteration in
the following parameters shall not be allowed:
a) Policy Term
b) Interest Rate for Risk Cover Schedule
c) Sum Assured (Loan Schedule)
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Policy No. GCLI/ Annexure-V
d) Moratorium Period
e) Any other terms and condition which may impact the premium or Sum Assured calculation
8. Surrender:
Surrender of insurance cover by a member:
Surrender of insurance cover by a member shall be allowed at any time after the entry of the member
into the policy but before 6 months prior to the end of policy term, provided the loan is fully repaid.
The surrender value shall be surrender value factor multiplied by single premium paid (excluding taxes
and extra premium, if any). The surrender value factor shall depend on the Policy term and duration
elapsed since the entry date of the member and is as specified in the Table below. Surrender value shall
only be payable provided it is at least Rs.100/-.
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Policy No. GCLI/ Annexure-V
Surrender of policy by the Master Policyholder:
The Policy can be surrendered by the Master Policyholder at any time after the date of commencement
of the policy by giving an advance notice of 30 days.
In case of surrender of the policy by Policyholder, the Corporation shall give an option to the individual
members of the group who are not interested in surrendering the insurance cover to continue as an
individual policy under group business and Intermediary, if any, shall continue to be responsible to serve
such members till their coverage is terminated.
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Policy No. GCLI/ Annexure-V
Surrender value under the policy shall be the sum total of the surrender values in respect of individual
members opting to surrender their insurance cover of the scheme.
9. Early repayment of loan:
If a member repays Outstanding Loan Balance before the end of the policy term, the member shall have
an option to
• Continue the insurance cover and in case of death during the policy term, the benefit shall be payable
to the nominee as per the Risk Cover Schedule irrespective of the actual loan position.
• Surrender his/her insurance cover.
10. Termination of cover: The insurance cover on the life of a Member shall terminate on the happening of
the earliest of the following event:
a) On the death of the member
b) On expiry of the policy term
c) Surrender of cover by a member during the policy term
d) If the Policy is surrendered by the Master Policyholder unless the member decides to continue
his/her cover as an individual policy under group business.
Part – E
This part is not applicable for this policy.
PART – F: GENERAL TERMS AND CONDITIONS
1. Free Look period: During the Free Look period, if the Master Policyholder/ any Member is not satisfied
with the Terms and Conditions, then the Master Policyholder may return the policy /the member may
return the Certificate of Insurance through the Master Policyholder stating the reasons of objection.
On receipt of the same the Corporation shall cancel the policy or Certificate of Insurance and return the
amount of single premium deposited after deducting the proportionate risk premium for the period on
cover and charges for medical examination, special reports, if any and stamp duty.
2. Nomination by a member of a policy is required as per Section 39 of the Insurance Laws (Amendment)
Act, 2015 as amended from time to time. The current provisions of Section 39 are contained in Annexure-
1 of this Policy Document.
The notice of nomination or change of nomination should be submitted for registration to the office of
the Corporation, where the policy is serviced. In registering nomination the Corporation does not accept
any responsibility or express any opinion as to its validity or legal effect.
3. For underwriting acceptance, evidence of insurability satisfactory to the Corporation, wherever asked for,
in the form and manner prescribed by the Corporation shall be furnished in respect of an individual
before admitting him/her as a Member of this policy. If the evidence submitted in respect of the
individual is not satisfactory or the insurance cover on his life involves special risk or hazard of a medical
or other nature, the Corporation may modify the terms of acceptance of the insurance cover.
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Policy No. GCLI/ Annexure-V
4. The normal documents which the Master Policyholder shall submit while lodging the claim in case of
death of the member shall be claim forms, as prescribed by the Corporation, accompanied with the duly
filled discharge form along with original Certificate of Insurance, NEFT mandate from the claimant for
direct credit of the claim amount to the bank account, proof of title, proof of death, records of medical
treatment prior to the death, whichever is applicable, to the satisfaction of the Corporation.
In case of surrender, Master Policyholder/Member will have to submit to the Corporation the duly filled
discharge form along with original Policy document /Certificate of Insurance, NEFT mandate direct credit
of the surrender value to the bank account.
5. Evidence of age of the Member, if not already admitted, satisfactory to the Corporation will be required
before any benefits in respect of him/her are paid under the Policy.
6. Additional Provisions applicable to Lender-Borrower Scheme(A) only are as under:
(i) The member must give authorisation at entry date or at a later date through the Master Policyholder
to the Corporation to make the payment of Outstanding Loan Balance to the Master policyholder by
deducting the same from the claim proceeds.
(ii) Master Policyholder shall submit a certified Credit Account Statement in respect of the concerned
member to the Corporation at the time of lodging claim.
(iii) Where the Claim Discharge Form of the member / nominee/ beneficiary is obtained through the
Master Policyholder the Corporation shall take a Certification from the Master policyholder that the
member/Nominee/ beneficiary who had submitted the Claim Discharge Form is the same person
who has been registered by the Master Policyholder as the member / nominee/ beneficiary under
this policy.
(iv) The Corporation shall settle the claim on the happening of contingent event covered under this policy
towards the Master Policyholder to the extent of Outstanding Loan Balance. The Balance claim
amount, if any, after deduction of Outstanding Loan Balance shall be credited directly in favour of
member / nominee/ beneficiary of this policy, as the case may be.
(v) The Corporation may audit or cause an audit into the accuracy of the Credit Account Statements of
the members/ deceased member in respect of which claims were settled on the completion of every
financial year.
(vi) Notwithstanding the above clause, the Corporation may also delegate the responsibility of the audit
and require the Master Policyholder to conduct audit or cause an audit into the accuracy of the
Credit Account Statements of the members / deceased member in respect of which claims were
settled on the completion of every financial year and shall obtain a certification from their respective
internal / Statutory Auditors that the Outstanding Loan Balance is being shown in the Credit account
Statement / Claim Discharge Form is correct and reflecting the balance as the conditions governing
the Credit Account / Loan Account .
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Policy No. GCLI/ Annexure-V
7. Taxes including Service Tax, if any, shall be as per the Tax laws and the rate of tax shall be as applicable
from time to time.
The amount of tax as per the prevailing rates shall be payable by the policyholder on the single premium
including extra premium, if any. The amount of tax paid shall not be considered for the calculation of
benefits payable under the plan including surrender value.
8. In any case where the Corporation is liable to account to the Revenue Authorities for income-tax, or any
other taxes or duties or any payments made under this policy, the Corporation shall deduct such sums
from the respective payments and the Corporation shall not be liable to the Member or the Master
Policyholder for the sums so deducted.
9. The Terms and Conditions including the benefits payable under this policy are subject to variation in
accordance with the relevant Legislation & Regulations.
10. The Master Policyholder shall at the request of the Corporation produce the Policy whenever necessary
for the purpose of stamping, reference or inspection.
11. The Corporation may conduct a surprise inspection of the books and records of the non employee –
employer group policy holder at least once a year to ensure total compliance with the applicable
regulations or require a certificate of such compliance from the auditors of the group policyholder, at
least once a year.
12. Variation in the risk cover schedule and premium rates due to the change of loan interest rate shall be
given effect to by endorsement over the signature of duly authorized officer of the Corporation.
13. The Corporation reserves the right to vary from time to time the premium rates, terms and provisions for
future members of this Policy upon giving to the Master Policyholder 30 days’ advance notice in writing
and any such variations will apply only to insurance cover hereunder effected or to be effected on or
after the date of expiry of such notice.
14. In case of death of a member due to suicide, within 12 months from date of entry of the member into the
scheme, claim payable shall be 80% of the Single Premium paid (excluding taxes and extra premium, if
any) in respect of that member. The Corporation will not entertain any other claim in respect of that
member.
For groups where the insurance cover is compulsory for all new entrants, above clause shall not be
applicable.
15. The Corporation reserves the right to terminate the policy and/or scheme without assigning any reason
whatsoever by giving to the Master Policyholder 30 days notice in writing. However, the insurance cover
of the existing members shall continue.
16. The Master Policyholder shall hold the Policy and all benefits payable hereunder UPON TRUST for the
benefit of the persons to whom the said benefits are payable in accordance with the Rules and terms and
condition of this policy.
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Policy No. GCLI/ Annexure-V
17. In case any conditions herein mentioned or any endorsements made hereto shall be contravened or in
case it shall hereafter appear that an untrue, or incorrect averment is contained in the proposal,
declaration, lists or statements already furnished or to be furnished to the Corporation by the Member or
the Master Policyholder in accordance with the provisions hereof or otherwise in respect of the
insurance cover effected or to be effected hereunder or that any of the matters set forth or referred to in
such proposal, declaration, lists or statements have not been truly and fairly stated or that any material
information has been suppressed or withheld, then and in every such case but subject to the provisions
of Section 45 of the Insurance Laws (Amendment) Act, 2015,, as amended from time to time wherever
applicable, the benefits under this Policy, in so far the same relate to the Member or Members in respect
of whom such contravention of conditions or suppression or withholding of material information takes
place or such untrue or incorrect averment has been made either by the Member himself or by the
Master Policyholder, shall be void and all claims to any benefit in virtue hereof shall be subject to the
provisions of Section 45 of the Insurance Laws (Amendment) Act, 2015, as amended from time to time.
18. It is hereby expressly agreed between the Master Policyholder and the Corporation that this Policy is
effected in accordance with the provisions of the Rules of the Scheme and in the event of the Rules being
amended, such amendments, if they have any bearing on or affect in any way, the terms and conditions
of this policy or any of the insurance cover effected hereunder, shall become effective only if the said
amendments are approved by the Corporation. Any alternation or amendment that may become
necessary in the terms and conditions of this Policy on account of amendment or alternation, approved
by the Corporation in the provisions of the Rules shall be given effect to by appropriate endorsements to
the Policy signed by the authorised Officer of the Corporation.
19. Any alternation or amendment in the terms and conditions of this Policy will be done with prospective
effect with the prior approval of IRDA.
PART – G: STATUTORY PROVISIONS
Section 45 of the Insurance Laws (Amendment) Act, 2015:
The provisions of Section 45 of the Insurance Laws (Amendment) Act, 2015 shall be as amended from time
to time. The current provisions are contained in Annexure-2 of this policy document.
Grievance Redressal Mechanism:
The Corporation has Grievance Redressal Officers at Branch/ Divisional/ Zonal/ Central Office to redress
grievances of customers. For ensuring quick redressal of customer grievances the Corporation has introduced
Customer friendly Integrated Complaint Management System through our Customer Portal (website) which is
http://www.licindia.in, where a registered policy holder can directly register complaint/ grievance and track
its status. Customers can also contact at e-mail id co_pgs@licindia.com for redressal of any grievances.
Claimants not satisfied with the decision of death claim repudiation have the option of referring their cases
for review to Zonal Office Claims Dispute Redressal Committee or Central Office Claims Dispute Redressal
Committee. A retired High Court/ District Court Judge is member of each of the Claims Dispute Redressal
Committees. For redressal of Claims related grievances, claimants can also approach Insurance Ombudsmen
who are appointed by Government of India for providing low cost and speedy arbitration to customers.
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Policy No. GCLI/ Annexure-V
NOTE:
In case you have any Complaints/Grievance, you may approach Grievance Redressal Officer / Ombudsman,
whose address is as under:
Address of Grievance Redressal officer:
Address of insurance Ombudsman:
Address of Divisional /Branch Office:
Note: In case of dispute in respect of interpretation of these terms and conditions and special
provisions/conditions the English version shall stand valid.
YOU ARE REQUESTED TO EXAMINE THIS POLICY, AND IF ANY MISTAKE BE FOUND THEREIN, RETURN IT
IMMEDIATELY FOR CORRECTION.
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