1.Proof of Age : The premiums having been calculated on the age of the Life Assured as declared in the Proposal, in case the age is found higher than such age, without prejudice to the Corporation’s other rights and remedies, including those under the Insurance Act, 1938,as amended from time to time, the premiums shall be payable in such case at the rate calculated on the Basic Sum Assured and Rider(s) Sum Assured, if opted, for the correct age at entry, and the accumulated difference between the premiums for the correct age and the original premiums, from the commencement of the Policy upto the date of such payment shall be paid to the Corporation with interest at such rate as fixed by the Corporation from time to time. However, in case the Life Assured/ Proposer continues to pay the premiums at the rates shown herein, and also does not pay the above mentioned accumulated debt, the accumulated difference between the premiums for the correct age and the original premiums from the commencement of this Policy up to the date on which the Policy becomes a claim, with interest on each instalment of such difference at such rate as may be fixed by the Corporation from time to time, shall accrue and be treated as a debt due by the Life Assured / Proposer against the said Policy and shall be deducted from the Policy moneys payable on the Policy becoming a claim.
“Provided further that if the Life Assured’s correct age at entry is such as would have made him/her uninsurable under the class or terms of assurance specified in the said Schedule hereto, the class or terms shall stand altered to such Plan of Assurance as are granted by the Corporation according to the practice in- force at the commencement of this policy, subject to the consent of the Policyholder, otherwise the policy will be cancelled.”
2. Forfeiture and Non-forfeiture Regulations:
Forfeiture Regulations: i. If less than two years’ premiums have been paid in respect of this policy and any subsequent premium be not duly paid, all the benefits under this policy shall cease after the expiry of grace period from the date of first unpaid premium and nothing shall be payable, and the premiums paid thitherto are also not refundable. ii. Forfeiture in Certain Other Events: In case any condition herein contained or endorsed hereon be contravened or in case it is found that any untrue or incorrect statement is contained in the proposal, personal statement, declaration and connected documents or any material information is withheld, then and in every such case this policy shall be void and all claims to any benefit in virtue of this policy shall be subject to the provisions of Section 45 of the Insurance Act, 1938, as amended from time to time. Non-forfeiture Regulations: If, after atleast two full years’ premium have been paid and any subsequent premiums be not duly paid, this policy shall not be wholly void, but shall subsist as a paid-up policy. During the Policy Term: The “Sum Assured on Death” under the 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 total period for which premiums have already been paid bears to the maximum period for which premium were originally payable. In addition to the Death Paid-Up Sum Assured, vested Simple Reversionary Bonuses accrued till date of policy becoming paid-up is payable on Life Assured’s death. This “Sum Assured on Maturity” under the 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 total period for which premiums have already been paid bears to the maximum period for which premium were originally payable. In addition to the Maturity Paid-Up Sum Assured, vested Simple Reversionary Bonuses accrued till the date of policy becoming paid-up is payable on the expiry of the policy term. After the expiry of Policy Term: On death of the Life Assured after expiry of the policy term only Paid-up Sum Assured shall be payable. Paid-up Sum Assured shall be equal to Basic Sum Assured 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. LIC’s New Jeevan Anand Plan (UIN: 512N279V02) Page 10 of 18 The policy so reduced shall thereafter be free from all liabilities for payment of the within mentioned premiums, but shall not be entitled to participate in future profits. However, the vested simple reversionary bonuses shall remain attached to the reduced paid up policy. Notwithstanding what is stated above, if atleast 3 full years’ premiums have been paid in respect of this policy, and any subsequent premium be not duly paid, in the event of the death of the Life Assured within six months from the due date of first unpaid premium, Sum Assured on Death along with vested simple reversionary bonuses and final additional bonus if any, will be paid after deduction of (a) unpaid premium(s) for the Base Policy with interest thereon upto the date of death, on the same terms as for revival of the Policy during such period, and (b) the balance premium(s) for the Base Policy falling due from the date of death and before the next Policy anniversary. This provision shall not apply in case of death due to suicide. Notwithstanding what is stated above, if at least five full years’ premiums have been paid in respect of this policy, and any subsequent premium be not duly paid, in the event of death of the Life Assured within 12 months from the due date of the first unpaid premium, the Sum Assured on Death along with vested simple reversionary bonuses and final additional bonus if any, will be paid after deduction of (a) unpaid premium(s) for the Base Policy with interest thereon upto the date of death on the same terms as for revival of the Policy during such period, and (b) the balance premium(s) for the Base Policy falling due from the date of death and before the next Policy anniversary. This provision shall not apply in case of death due to suicide. All of the above mentioned Non-forfeiture Regulations do not apply to any Riders as Rider (s) do not acquire any paid up value. The Riders Benefits cease to apply, if the policy is in lapsed condition.
3. Revival of lapsed Policies
An Insurance Policy would lapse on non-payment of due premium within the days of grace. A policy in lapsed condition may be revived during the life time of the Life Assured, but within the Revival Period and 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/Proposer. The Corporation, however, reserves the right to accept at original terms, accept with modified terms or decline the revival of a discontinued policy. The revival of the discontinued policy shall take effect only after the same is approved, accepted and revival receipt is issued by the Corporation. Revival of Rider (s), if opted for, will only be considered along with the revival of the Base policy and not in isolation. .
4. Surrender :
The policy can be surrendered by the policyholder at any time provided two full years’ premiums have been paid. 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. No GSV is applicable after maturity benefit is paid i.e after expiry of the policy term The Guaranteed Surrender Value payable during the policy term shall be equal to the total premiums paid (excluding any extra premium, any premiums for rider(s), if opted for and taxes) multiplied by the Guaranteed Surrender Value factor applicable to total premiums paid. 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 contained in Annexure – 4 of this policy document. In addition, the surrender value of vested simple reversionary bonuses, if any, shall also be payable, which is equal to vested bonuses multiplied by the Guaranteed Surrender Value factor applicable to vested bonuses. These Guaranteed Surrender Value factors will depend on the policy term and the policy year in which policy is surrendered and are contained in Annexure – 5 of this policy document. No surrender value will be available on Rider(s), if any.
5. Policy Loan:
During the Policy Term, loan shall be available under the policy subject to the following terms and conditions, within the surrender value of the policy for such amounts and on such further terms and conditions as the Corporation may fix from time to time: (i) Loan can be availed provided atleast two full years’ premiums have been paid. (ii) The maximum Loan that can be granted during the policy term shall be as under : • For in-force policies : upto 90% of Surrender Value • For paid-up policies : upto 80% of Surrender Value (iii) The Policy shall be assigned absolutely to and held by the Corporation as security for the repayment of Loan and of the interest thereon; LIC’s New Jeevan Anand Plan (UIN: 512N279V02) Page 11 of 18 (iv) Interest on Loan shall be paid on compounding half-yearly basis to the Corporation at the rate to be specified by the Corporation at the time of taking loan under this policy. The applicable interest rate shall be based on the method approved by IRDAI. The first payment of interest is to be made on the next Policy anniversary or on the date six months before the next Policy anniversary whichever immediately follows the date on which the Loan is sanctioned and every half year thereafter. (v) In the event of default in payment of loan interest on the due dates as herein above mentioned above and when the outstanding loan along with interest is to exceed the surrender value, the Corporation would be entitled to foreclose such policies. Such policies when being foreclosed shall be entitled to payment of the difference of surrender value and the loan outstanding amount along with interest, if any. (vi) Corporation is entitled to recover or recall the amount of the Loan with all due interest by giving 3 month notice. (vii) In case the policy shall mature or surrendered or become a claim by death, the Corporation shall become entitled to deduct the amount of the Loan or any portion thereof which is outstanding, together with all interest from the policy moneys.
6. Termination of Policy:
The policy shall immediately and automatically terminate on the earliest occurrence of any of the following events: a) The date on which lumpsum Death Benefit / Final instalment of Death Benefit / Final instalment under Settlement Option, whichever is later, is paid; or b) The date on which surrender benefits are settled under the policy; or c) In the event of default in payment of loan interest as specified in Condition 5 of Part D of this policy document; or d) On expiry of Revival Period if the policy, which has not acquired paid up status, has not been revived within the revival period; or e) On payment of free look cancellation amount. f) In the event of forfeiture as specified in Condition 2 (ii) of Part D of this Policy Document.
7. Free look period:
During the Free Look period of 15 days from the date of receipt of the Policy Document by the Policyholder, if the Policyholder is not satisfied with the Terms and Conditions of the policy, he/she may return the policy to the Corporation stating the reason of 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 Policy and Rider, if opted for) for the period of cover and charges for medical examinations, special reports, if any and stamp duty.