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Age is the main basis of calculation of
premium under life insurance policies.
The following are accepted as evidence
of age:
- Certified extract from Municipal
or Local Body’s records made at
the time of birth.
- Certificate of Baptism or Certified
Extract from Family Bible, if it contains
age or date of birth.
- Certified Extract from School or
College records, if age or date of birth
is stated therein.
- Certified Extract from Service Register
in the case of Govt. employees and employees
of Quasi-Govt. Institutions or
- Passport issued by the Passport Authorities
in India.
- Policyholder should pay the premiums
on due dates. However, a grace period
of one month but not less than 30 days
will be allowed for payment of yearly/half-yearly/quarterly
premiums and 15 days for monthly premiums.
- When the days of grace expire on a
Sunday or a public holiday, the premium
may be paid on the following working
day to keep the policy in force.
- If the premium is not paid before
the expiry of the days of grace, the
policy lapses.
- If the policy has lapsed, it can
be revived during the life time of the
life assured, within a period of five
years from the date of the first unpaid
premium but before the date of maturity
subject to certain conditions.
- The Corporation offers three convenient
schemes of revival viz., Ordinary Revival,
Special Revival and Installment Revival.
Policies can also be revived under Loan-cum-Revival
and SB-cum-Revival schemes.
- Request for revival may be made to
the Branch Office servicing the policy.
- The policyholder should immediately
intimate the change of his/her address
to the Branch Office servicing the policy.
The correct address facilitates better
service and quicker settlement of claims.
- Policy records can also be transferred
from one Branch Office to another for
servicing, as requested by the policyholder.
- The Policy Document is an evidence
of the contract between the Insurer
and the Insured. Hence the policyholder
should preserve the Policy Bond till
the contracted amount under it is settled.
- Loss of the Policy Document should
be immediately intimated to the Branch
Office where it is serviced.
- Loans are granted on policies to
the extent of 90% of Surrender Value
of the policies which are in force and
85% of the Surrender Value in case of
policies which are paid-up, inclusive
of the cash value of bonus. The rate
of interest charged at present is 9%
p.a. payable half-yearly.
- Loans are not granted for a period
shorter than six months. The Conditions
and Privileges printed on the back of
the Policy Bond states whether a particular
policy is with or without the loan facility.
- The Corporation generally allows
concessions on payment of premiums,
settlement of claims, issue of duplicate
policies, etc when the policyholder
are affected by natural calamities such
as droughts, cyclones, floods, earthquakes,
etc.
- Nomination is a right conferred on
the holder of a Policy of Life Assurance
on his own life to appoint a person/s
to receive policy moneys in the event
of the policy becoming a claim by the
assured’s death. The Nominee does
not get any other benefit except to
receive the policy moneys on the death
of the Life Assured. A nomination may
be changed or cancelled by the life
assured whenever he likes without the
consent of the Nominee.
Ensure nomination exists in the policy
for easy settlement of claims.
- Assignment means transfer of rights,
title and interest. When an assignment
is executed, all rights, title and interest
in respect of the property assigned
are immediately transferred to the Assignee/s
and the Assignee/s become the owner/s
of the policy subject to any lawful
condition made in the assignment.
- Assignment can be either conditional
or absolute. On assignment (other than
to LIC), Nomination automatically stands
cancelled. Hence, when such a policy
is reassigned, the policyholder will
have to make a fresh nomination to avoid
delay in settlement of claim.
- LIC settles survival benefit/maturity
claims on or before the due date.
- Policyholder are intimated well in
advance by the Branch Office which services
the policy regarding the payment, and
the necessary Discharge Voucher is also
sent for execution by the assured. In
case the policyholder does not get any
intimation from the Branch Office concerned,
he/she should contact them, quoting
the Policy Number.
- Survival Benefit payment up to Rs.60,000/-
are settled without insisting for Policy
Bond and Discharge Voucher.
- If the life assured dies during the
term of the policy, death claim arises.
The death of the policyholder should
be immediately intimated in writing
to the Branch Office where the policy
is serviced along with the following
particulars:
- The No./s of the policy/ies
- The name of the policyholder
- Death Certificate issued by concerned
Authority
- The date of death
- The cause of death and
- Claimant’s relationship
with the deceased
- On receipt of the intimation of death,
necessary claim forms are sent by the
Branch Office for completion along with
instructions regarding the procedure
to be followed by the claimant.
- The claims which have arisen after
a period of three years are treated
as non-early claims and settled within
30 days from the date of receipt of
all requirements.
- The claims that have arisen within
a period of two years from the date
of commencement of the policy, are treated
as early claims and investigation is
compulsory in such cases.
- The claim is usually payable to the
nominee/assignee or the legal heirs,
as the case may be. However, if the
deceased policyholder has not nominated/assigned
the policy or if he/she has not made
a suitable provision regarding the policy
moneys by way of a Will, the claim is
payable to the holder of a Succession
Certificate or some such evidence of
title from a Court of Law.
- The Corporation grants claims concessions
under certain Plans whereby payment
of full sum assured is made, subject
to the deduction of unpaid premiums
with interest till the date of death
and unpaid premiums falling due before
the next anniversary of the policy,
in the event of the death of the life
assured within a period of six months
or one year from the date of the first
unpaid premium, provided premiums have
been paid for at least three years and
five years respectively.
The
Corporation settles a large number of Death
Claims every year. Only in case of fraudulent
suppression of material information is the
liability repudiated. This is to ensure
that claims are not paid to fraudulent persons
at the cost of honest policyholders. The
number of Death Claims repudiated is, however,
very small. Even in these cases, an opportunity
is given to the claimant to make a representation
for consideration by the Review Committees
of the Zonal office and the Central Office.
As a result of such review, depending on
the merits of each case, appropriate decisions
are taken. The Claims Review Committees
of the Central and Zonal Offices have among
their Members, a retired High Court/District
Court Judge. This has helped providing transparency
and confidence in our operations and has
resulted in greater satisfaction among claimants,
policyholders and public.
- The Grievance
Redressal Machinery has
been further expanded with the appointment
of Insurance Ombudsman at different
centers by the Government of India.
At present there are 12 centres operating
all over the country.
- Following type of complaints fall
within the purview of the Ombdusman
a) any partial or total repudiation
of claims by an insurer;
b) any dispute in regard to premiums
paid if payable in terms of the policy;
c) any dispute on the legal construction
of the policies in so far as such disputes
relate to claims;
d) delay in settlement of claims;
e)non-issue of any insurance document
to customers after receipt of premium.
- Policyholder can approach the Insurance
Ombudsman for the redressal of their
complaints free of cost.
- All 2048 Branches of LIC are fully
computerized covering all policy servicing
aspects to give prompt computerized
services from new policy introduction,
acceptance of renewal premium, revivals,
loans, etc to final claims settlement.
- Green Channel facility has been introduced
for the speedy completion of proposals.
- Payment of premiums can be made through
internet through service providers,
viz., HDFC Bank, ICICI Bank, Times of
money, Bill Junction, UTI Bank, Bank
of Punjab,Citi Bank, Corporation Bank,
Federal Bank and Billdesk.
- A machinery for redressal of policyholders’
grievances exist in all the offices
of the Corporation. These are headed
by designated Officers who are available
at their respective Offices every Monday
between 2.30 pm and 4.30 pm. except
holidays. Policyholder can approach
these officers to get their grievances
redressed.
- The Designated Officers at the various
offices of the Corporation are :
At Branch Office --- Sr./Branch Manager
At Divisional Office --- Marketing Manager
At Zonal Office --- Regional Manager
(Mktg)
At Central Office --- Executive Director
(Mktg/IO/CRM)
- Citizens' Charter was presented to
the Nation in November, 1997. In the
Charter the bench marks were prescribed
for 30 servicing areas.
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