LIC’s Group Credit Life Insurance is a non–linked, non-participating single premium group term insurance plan. This plan offers an insurance cover on death of the group member during the policy term. The amount of insurance cover i.e. sum assured shall depend on the loan amount, rate of interest, moratorium period, if any, and nature of the loan, the sum assured in respect of each member may vary during policy term and it will be guided by the scheme rules of the loan provider (i.e. Master Policyholder).

1. BENEFITS Death Benefit: In case of unfortunate death of a member under a policy during the policy term, a Sum Assured as per the risk cover schedule in respect of that member shall be paid. Maturity Benefit: On survival to the end of the policy term, nothing shall be payable. 2. ELIGIBILITY CONDITIONS AND OTHER RESTRICTIONS a) Minimum Entry Age : 18 years (completed) b) Maximum Entry Age : 60 years (nearest birthday) c) Maximum Maturity Age : 65 years (nearest birthday) d) Minimum Sum Assured : Rs.400000/- e) Maximum Sum Assured : No limit. f) Policy Term : 5 to 35 years g) Minimum group size : 50 members h) Premium payment mode : Single premium only 3. LOAN: No loan is available under this plan. 4. SURRENDER VALUE: Surrender of insurance cover by a member: Surrender of insurance cover by a member shall be allowed at any time after the entry of that 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 nearest half-yearly durations from the entry date of the member to the date of surrender and is enclosed as specified in the table below. Surrender value shall be payable provided it is at least Rs.100/-

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. 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. However, in case of surrender of the policy by Master 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 the Corporation/intermediary, if any, shall continue to be responsible to serve such members till their coverage is terminated. 5. TAXES: Taxes including service tax, if any, shall be as per the Tax Laws and the rate of tax 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. 3 6. FREE LOOK PERIOD: If Master Policyholder/ any member is not satisfied with the “Terms and Conditions” of the policy then the Master Policyholder may return the policy /the member may return the Certificate of Insurance through the Master Policyholder within the 15 days from the date of receipt of the Policy Document /Certificate of Insurance stating the reasons of objection. On receipt of the same the Corporation shall cancel the policy and return the amount of premium deposited after deducting proportionate risk premium for the period on cover and charges for medical examination, special reports, if any and stamp duty. 7. EXCLUSION: SUICIDE: 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.