**MONEY BACK- CHILDREN ASSURANCE PLAN **

PLAN NO- 113

WITH GUARANTEED ADDITION AND LOYALTY ADDITION
INTRODUCED ON –2/1/1995 WITHDRAWN ON- 31/3/2002
CO/ACT/1552/4 DT 2/1/1995 and further CO/ACT/1554

The above plan has evolved to facilitate provisions for anticipated educational expenses
with payment of premium ceasing on policy anniversary on or immediately after the child
complete 18 years of age. The plan besides offering risk cover also offers payment of sum
assured in instalment at age 18,20,22,24. and at age 26, guaranteed addition and loyalty
addition if any.
Children, both boys and girls upto 10 years of age(LBD) are eligible to be proposed for
insurance under this plan. Proposals on the lives of children aged 5 years and above will be
entertained only if they are school going and in such case, extract from school record will
be accepted as age proof.
Under this plan, risk will commence either 2 years after the date of commencement or from
the policy anniversary falling immediately after the completion of 7 years of age, whichever
is later. After commencement of risk, guaranteed addition will vest in policy from DOC.
No cash option will be available under this plan.

A) SYNOPSIS OF PLAN


FOR BASIC PLAN

1) Age at entry Minimum 0 years.

Maximum 10 years LBD
Maturity age 26 years of LA’s last birthday.
Premium ceasing age 18 years of LA’s LBD
2) Policy term 26 – age at entry
Premium paying term 18 – age at entry
3) Sum assured Minimum Rs. 25,000 upto 25/6/2000
Rs. 50000 from 26/6/2000
Maximum Rs. 5,00,000 sum assured in multiple of
Rs. 25000
4) Mode rebate Yearly 3% of tabular premium
Half-yly, 1.5% of tabular premium
5) Sum assured rebate
SUM ASSURED GROUP
From 25000 to 49999 Rs. 1 /- per thousand
From 50,000 & above Rs. 2/- per 1000 sum assured

6) Mode of payment Yearly, Half-yearly, quarterly,

SSS, single premium

7) Only standard lives within normal range of BMI index will be allowed at NB stage. At
revival stage, overweight will be accepted by central office.
8) Dating back will be allowed within the financial year to the extend of 3 months only.
9) NMG/NMS not allowed. For child less than 10 years ( LBD) medical examination is not
required. Proposal form no 360 is to be used.
10) No CEIS rebate is allowed.
11) No medical examination of life assured is required. But if proposer opts for premium
waiver benefit or term rider benefit, then same can be considered under medical or
non-medical special basis.
12) For PWB, proposer’s maximum age at entry will be 50 years NBD.
13) For term rider benefit- maximum age at entry of proposer is 50 years NBD and
maximum maturity age is 60 years.

Underwriting guidelines in respect of insurance on the lives of Minor/ major children were
revised as per CO/ACT/2090/4 dt. 1/11/2006. The said guidelines were also made
applicable for revival of policies under risk plan for minor as per letter dt.27/1/2007 of
CO/CRM/PS.
Medical requirement Chart for new business/Revival is as followes-(co/U and R/25/2008
dt.4/12/2008,
SUM ASSURED/ SUM AGE GROUP
TO BE REVIVED 0 TO 4 YRS 5 TO 9 YRS 10 TO 17 YRS
UP TO 8 lacs No FMR No FMR, but height & No FMR, but height & weight
DGH in f. no 720 weight in ACR/DGH in f. in ACR/DGH in f. no 720 and
no 720 and copy of latest copy of latest school report
school report
From 800001 to 1)No FMR 1)No FMR, but 2)height & 1)Juvenile FMR
Rs.25 lakh 2)Immunization weight in ACR/DGH in f. 2)copy of latest school report
record of child no 720 and 3)copy of 3) DGH in f. no 720
3)DGH in f. no 720 latest school report
From 2500001 to 1)Juvenile FMR 1) Juvenile FMR 1) Juvenile FMR
4999999 2)Immunization 2)copy of school 2)copy of school
record of child report report
3) copy of school 3)DGH in F. no 720 3)DGH in F. no 720
report
4)DGH in f. no 720
From 50,00,000 to 1)Juvenile FMR 1) Juvenile FMR 1) Juvenile FMR
1,00,00,000 2)Immunization 2)ECG,Haemogram 2)ECG,Haemogram
recordof child 3)serum creatine, RUA 3)SBT-13
3) copy of school 4)elisa for HIV,HbsAg 4)copy of latest school report
report 5)copy of latest school 6) DGH in f.no 720
4)DGH in f. no 720 report
6) DGH in f.no 720

Other conditions for Revival are as followes:--

1) Revivals under risk plan for minor’s will be allowed to standard and sub-standard lives
attracting EMR up to class III due to overweight only. Proposals on the lives of overweight
minors attracting EMR class IV and above may be referred to CUS. See new rules for BMI.
2) The life to be assured should have properly developed physique. Family history, personal
history and medical reports are satisfactory.
3) Clause 10(A) is to imposed.
4) Premium waiver benefit (PWB) under children plans is allowed on the lives of parents
under Non-medical (special) and Non-medical (general) scheme to professionals.
5) Revival of policies to major children/ students up to age 25 yrs(NBD) is allowed up to
sum to be revived of Rs. 8 lakh under Non-medical(general) under all plans excluding
plan no 43,52,58,164,167,177, term rider and critical illness rider plans.
6) Kindly note that revival requirements under Minor’s policies are same as under
new proposals, irrespective whether risk has commenced or not.

7) The concept of BMI (Body Mass Index) for rating build of the life assured is introduced
w.e.f.21/6/2007. The BMI build chart for Minor lives gives only standard ranges of BMI for
different ages ( from age 5 to 17 years) for Boys and Girls separately. This chart is
applicable for underwriting both Medical as well as Non-medical proposals. The present
practice of allowing insurance cover to sub-standard minor lives attracting EMR up to class
III on account of overweight stands withdrawn. Revival of policies issued to Minor lives
under all eligible plans can be allowed if they do not attract any EMR on account of any
adverse health factors with ratings as shown below:1) at standard rates if their BMI falls
within the standard BMI for their ages2) with appropriate extra premium if their BMI is more
than the upper limit of the standard range for their age(over weight minors)
3) revival to be declined if BMI is less than the lower limit of the standard range for their
age( under weight minors)

14) Parents insurance need not be insisted upto 2 lakh sum assured. Insurance upto 5
lakh can be granted without insisting for parents insurance with certain conditions, (
refer co/act/1874/4 dt 23/5/2003)

15) COMMENCEMENT OF RISK  waiting period

Risk under this plan will commence either after 2 years from the date of
commencement of the policy OR from the policy anniversary immediately following the
completion of 7 years of the age of life assured, whichever is later. The risk will commence
provided premiums during waiting period have been paid fully.
Under this plan the ‘age’ is defined as ‘ last birthday’ and the risk commences from the
policy anniversary following the completion of a specified age i.e 7 yrs LBD or 2 years from
DOC, whichever is later.
The period starting from the date of commencement of policy to the date of
commencement of risk will be treated as waiting period
As per clarification given by co/act/ps dt 14/3/2009, for finding out risk commencement
date, we must add ( 7 – age at entry) or 2 years, whichever is higher, to the date of
commencement of policy.
For example –
Date of birth- 1/7/2003, Date of commencement of policy- 10/1/2006, age at entry will be
2 years LBD, risk under the policy will commence from either 2 years from DOC or from
policy anniversary immediately on completion of age 7 years i.e from policy anniversary
following completion of age 7 yrs) , whichever is more.
Hence ( 7- 2)= 5 or 2 yrs from DOC will be taken into account. So add 5 years to date of
commencement = 10/1/2006 + 5 = 10/1/2011 will be the date of commencement of risk.

16) DEFERMENT PERIOD
or vesting age

The deferment period should be taken as equal to (18- age at entry). The policy shall
automatically vest in life assured on his/her completing age of majority i.e 18 years of age
and not from policy anniversary after attaining the age of 18 years, provided all the
premiums upto date of vesting have been paid fully.
After date of vesting , no premiums are required to be paid. As per co/act/1976 dt.
19/10/2004, policy will vest in life assured on policy anniversary coinciding with or
immediately following the completion of 18 years of age.

17) Plan is not allowed to children aged 5 or more if same is not attending the school.
Policy will be accepted with clause 10 A. no need to impose cl 4 B in case of female life
assured.

B ) PREMIUM WAIVER BENEFIT  DEATH OF PROPOSER DURING DEFERMENT PERIOD

By payment of an additional premium payable during the deferment period or till the death
of the proposer, if earlier, the proposer can secure the benefit of cessation of premium
from the date of his death to the end of the deferment period. This benefit is allowed
subject to satisfactory medical examination of proposer’s life at his cost only. Earlier PWB
benefit is allowed to standard lives only. However w.e.f. 29/12/2001 ( co/act/1773) PWB
was allowed to sub-standard lives attracting EMR class III on build only. Now w.e.f.
18/9/2003( co/act/1901) , PWB is allowed to sub-standard lives attracting EMR class III on
health ground also. This additional premium will not be taken into account while calculating
GSV or while refunding the premiums to proposer in case of death of life assured before
deferment period. Other rules are:-
1) If propser under policy, expired while the policy is in force( i.e before due date of
premium or within days of grace) for full sum assured, the further premiums
payable following death of proposer till the deferred date shall cease.
2) For proposer maximum age at entry will be 50 years NBD.
3) Endorsement as per f. no 5043 will be passed on the policy.
4) Requirements as per early or non-early death claim should be called.
5) Claim concessions are not applicable for considering the claim under PWB.
6) In case of death of the proposer within days of grace , the premium fallen due after
date of death of proposer will be recovered/ recoverable before placing the
endorsement.
7) PWB can be granted after issue of policy, where alteration fee of Rs. 50/- will be
charged. Co/act/ps/2030 dt 23/8/2005
8) If proposer has committed suicide or ends his life by his own hands, then PWB is not
operative. However, this clause is applicable for 1 year from date of commencement
of policy. Refer co/act/
9) Premium rates for PWB to be charged on per Rs. 100/- yearly / annual premiums are
given. These rates are not charged on sum assured under the policy.
10) As per co/act/1749/4 dt 7/4/2001 and co/act/cus dt 16/8/2001, PWB can be
granted in case of proposal on the lives of minor’s proposars where standard extra
on account of operations, ailments such as caesaren section, loss of one eye etc,
physical deformity falling in group A.
11) In case where female proposer asking for PWB, had undergone a caesarian section,
then single extra of Rs. 2/- per 1000 sum assured is to be charged. Sum assured for
charging extra is to be taken as premiums payable during the deferment period. No
term rider will be allowed.
12) Claim concessions are not applicable for PWB.
13) For availing PWB , proposer will bear the cost of full medical report or special
report.
C) TERM RIDER BENEFIT

Since 1995 has been declared as family year, it has been decided to grant optional term
rider to cover the life of the proposer.
Term rider benefit can be availed the proposer by payment of an additional premium to the
extent of 20% of the basic sum assured but not exceeding Rs. 50,000. term rider benefit will
be paid in case of death of the proposer before the end of the policy anniversary
immediately following the completion of age 18 years by the within life assured. The
benefit shall not be payable in the event of the death of the proposer by his own hands. The
additional premium of the term rider will not be taken into account while calculating death
claim or GSV. Term rider benefit is payable only if the death of the life assured takes place
before due date of premium or within days of grace. The proposer upto age 50 years NBD
can avail this benefit with maximum maturity age for this benefit will be 60 years NBD. Cost
of medical reports for availing this benefit will be borne by life assured.
As per co/act/1976/4 dt. 19/10/2004, it has been clarified that term rider benefit is
available before date of vesting only.

D) PAID UP VLAUE

1) BEFORE COMMENCEMENT OF RISK

There is no paid up value to the sum assured on discontinuance of premiums before

commencement of risk as defined above. In case, 3 years premiums have been paid fully
and policy lapses before commencement of risk, then only GSV shall be payable. GSV will be
90% of premiums paid excluding the premium for 1st year and other extra premium.
No cash value of bonus is payable.
If policy has lapsed before commencement of risk and paid up value is calculated after date
of commencement of risk, then also GSV is payable. This is because, risk will not commence
unless all premiums during waiting period have been paid.

2) ON AND AFTER RISK COMMENCEMENT DATE OF POLICY 

Provided premiums have been paid fully upto date of commencement of risk and risk is
commenced, then atleast 3 full years premiums have been paid from date of
commencement ( not risk) , then paid up value will be calculated as:-

= sum assured x no of years premiums paid

No of years premiums payable(PPT)

Under single premium policies paid up value will be sum assured.

In case, paid up value is being calculated after payment of any survival benefit has paid or
fallen due, then from paid up value survival benefit paid/ payable will not be deducted.

E) GUARANTEED SURRENDER VALUE

1) BEFORE COMMENCEMENT OF RISK 

After paying atleast 3 full years premiums, GSV will be 90% of the premiums paid excluding
the premium for the first year and other additional premiums paid for PWB/ term
riderothers.
No cash value of guaranteed addition is payable. If policy is in paid up condition and GSV is
calculated on or after risk commencement date , then also GSV will be calculated as above.

Under single premium policy, GSV will be available after expiry of 3 policy years and
amount will be 90% of single premium paid excluding all extra premiums, if any. Cash value
of guaranteed addition is not allowed.

2) ON AND AFTER COMMENCEMENT OF RISK DATE

If premiums risk commencement date have been paid fully and GSV is being calculated on
or after date of commencement of risk , then GSV = 90% of the premiums paid before
commencement of risk excluding the 1st year and any other premium + 30% of the premiums
paid after the risk commencement date and all extra premium and additional premium
paid for accident benefit. There is no need to deduct 1st year premium while calculating
30% of the premiums. Cash value of guaranteed addition is also allowed, which will be
calculated from commencement date of policy.
Cash value of guaranteed addition is also payable.
If policy lapsed during risk commencement period after paying 3 full year’s premiums and
further premiums upto date of risk commencement have not paid, GSV is calculated on and
after date of risk commencement date, and then amount of GSV will be calculated as per 1
above.
If GSV is calculated after payment of any survival benefit instalment due, then such amount
of SB paid should be deducted from GSV.
Under single premium policy, GSV will be available after expiry of 3 policy years and
amount will be 90% of single premium paid excluding all extra premiums, if any. Cash value
of guaranteed addition is not allowed.

F) SPECIAL SURRENDER VALUE

1) BEFORE RISK COMMENCEMENT DATE 

If surrender value application is received before risk commencement date, then special
surrender value is not available. What is available is guaranteed surrender value as
explained above. Amount of GSV is payable to proposer only.
Cash value of guaranteed addition is not available.

2) POLICY IS LAPSED BEFORE RISK COMMENCEMENT DATE AND SSV IS CALCULATED

ON OR AFTER RISK COMMENCEMENT DATE)

Kindly, note that since premiums up to date of risk commencement have not been paid
fully, what is payable is GSV. Amount is payable to proposer only.

3) PREMIUMS HAVE BEEN PAID FULLY UPTO RISK COMMENCEMENT PERIOD AND
SPECIAL SURRENDER VALUE IS BEING CALCULATED ON OR AFTER RISK
COMMENCEMENT DATE

The basis of calculation of special surrender value is given as per co/act/ps/1552/4 dt is as

follows:-

• If all premiums upto date of risk commencement have been paid fully or some more
premiums have been paid after date of risk commencement and risk has commenced
under the policy, then calculate paid up value as explained above. Or as per
endowment assurance plan.
• If paid up value is calculated after settlement of of any SB paid / payable, then said
SB amount should not be deducted from paid up value.
• Calculate guaranteed addition from date of commencement. As per co/act/2071/4
dt. 3/5/2006, while calculating surrender value under paid up policy, proportionate
guaranteed addition is payable for no of months premiums received in the policy
year where premiums paid partly. Under single premium policies, guaranteed
addition is payable in full for the year of surrender. i.e. if duration of surrender is 5
year 1 day, then GA will be taken into account for 6 years.
• Use table no 1-A of surrender value booklet.
• Duration of policy for SSV factor = ( date of calculation of surrender - date of
commencement of policy) and not risk commencement date
• Term of policy = date of maturity - date of commencement) and not risk
commencement date . ( 26 – age at entry)
• Special surrender value factors will depend upon duration of policy as calculated
above and term of policy.
• SSV = ( paid up value + guaranteed addition ) x SSV factor.
• SSV as calculated above to be reduced by survival benefit instalment paid earlier
upto the date of surrender together with interest @ 10% p.a. compounding half-
yearly. The amount to be recovered in respect of each instalment paid is arrived as
below
• = ( SB instalment ) x ( 1.05) ^ (date of surrender – date of payment of SB)
180
 • Factors for calculating value of survival benefit @ 12% p.a compounded half-yearly
are given below
Half-yearly factors for Rs. Example
1/- accumulated @12% p.a
half-year
No of factor 1) Amount of SB paid – Rs. 10000/-
half-year 2) Duration from date of SB to date of surrender= 1
1 1.06000 year 11 months 3 days. This means 3 half-year 5 months
2 1.12360 and 3 days
3 1.19101
4 1.26247 Answer
5 1.33822 No of days in excess of 3 Half-year is 5 months 3 days
6 1.41851 means = 5 months x 30 days
7 1.50363 = 150 days + 3 days
8 1.59384 = 153 days
9 1.68947 = 1.53 days in two decimal
10 1.79084 Factor 3 half-year = 1.19101
Accumulated value of SB from date of Sb to date of SV
11 1.89829
= SB amount x factor x 30 + days
12 2.01219
30
13 2.13292
= 10000 x 1.19101 x 30+ 1.53
14 2.26090
30
15 2.39655 = 10000 x 1.19101 x 1.051
16 2.54035
17 2.69277 = 12517.51
18 2.85433 From calculated surrender value , enhanced value of SB
19 3.02559 i.e 12518 will be deducted.
20 3.20713

Accumulated value of SB from date of Sb to date of SV

= SB amount x factor x 30 + days
30
In above formula , how 30 is calculated. Rate of interest is 12% is per annum.
For half-year i.e for 180 days , it will be 6% = 180 days / 6 = 30.

G) LOAN

Loan was not available under the policy. However, as per co/crm/589/23 dt 3/7/2007, it
has been decided to grant loan under the policies on minor lives even during minority of the
life assured by obtaining the declaration from proponent to the effect that loan is raised for
the benefit of the minor life assured as per clause 10(a). Further as per co/crm/656 dt
20/5/2008, loan under this plan can be granted during minority only i.e till completion of
the premium applying term. On or after end of PPT , loan can not be granted. Letter of
agreement in f. no 3599-c and endorsement of loan to be signed by proposer should be
obtained. If any SB falls due, then loan and loan interest should be deducted. In case of
failure to pay loan interest, foreclosure action will be initiated as per rule.
Form no -3599 C
Form of letter of agreement ( loan under minor lives policies)
To
Sr/Branch Manager
LIC Of India Br no-

Dear sir,
Re: Loan under Pol no-………………………………

With reference to my application dt………. For a loan under the above policy which has been
issued under ………..plan, I hereby agree that in the event of a claim arising under the above
mentioned policywhich may either by maturity claim or a death claim, the corporation may
adjust the instalment of sum assured then payable towards repayment of the accrued
interest and outstanding loan. However, if any balance of the aforesaid instalment of sum
assured is left over after the entire accrued interest and loan outstanding is liquidated by
such adjustment, such balance should be payable to me or to the legal heirs after my
death, as the case may be. I further agree that I shall utilize the money thereby received
for the benefit of the minor or his/her estate.
Yours faithfully,

(signature of proposer)/ Name

 ENDORSEMENT OF LOAN
“ Notwithstanding anything mentioned to the contrary, it is hereby declared and agreed
that a loan is being granted under this policy subject to the following terms and conditions
and subject to production of satisfactory title:
1) The policy shall be assigned absolutely to and held by the corporation as security for
repayment of advance(s) and the interest thereon.

2) Interest on the advances shall be paid compounding half-yearly to the corporation at the
rate to be specified by the corporation when the relative advance is made. The first
payment of interest to be made on the next policy anniversary or on the date 6 months
before the next policy anniversary whichever immediately follows the date on which the
relative advance is made and every half year thereafter. Interest will be charged for a
minimum period of 6 months.

3) The corporation shall be entitled to call for repayment of the advances with all due
interest by giving 3 months notice. In the event of failure to repay the advances when
required or to pay the interest on the due dates as herein above mentioned or within 30
days after each due date respectively, the policy shall be held, without the necessity of any
notice being given , to be forfeited to the corporation and the corporation shall be entitled
to apply the surrender value allowable in respect of the policy in payment of the advances
and interest.

4) In case the policy shall mature or become a claim by death or is surrendered, the
corporation shall mature or become a claim by death or is surrendered, the corporation
shall become entitled to deduct the amount of the advances or any portion thereof which is
outstanding together with all interest from the policy moneys.

5) Whenever survival benefit falls due under the policy where loan has been allowed, the
survival benefit amount will be used first towards repayment of accrued interest and loan
outstanding , in that order.

I hereby agree for the above endorsement being place on the policy.

For LIFE INSURANCE CORPORATION OF INDIA

P Sr/Branch manager signature of proposer

H) ACCIDENT BENEFIT

Since premium paying period under this plan ends on 18 years of life assured, accident
benefit is not available under the policy.

I) GUARANTEED ADDITION

• Provided the policy is in force at the end of each year, a guaranteed addition of Rs.
80/- per 1000 sum assured will be added to the policy at the end of each policy year,
for which premiums have been paid in full.
• Such guaranteed addition is payable beginning with the date of commencement of
the policy and will be payable on the date of maturity/ death/ surrender, provided
it takes place on or after the date of commencement of risk.
• As per co/mktg/cs/523 dt 19/12/1998, for the year of death though we may recover
balance of premium for remaining policy anniversary, guaranteed addition should
not be paid for the policy year of death. As per co/act/2071 dt. 3/5/2006, while
calculating GA under paid up policy, proportionate guaranteed addition is payable
for no of months premiums received in the policy year where premiums paid partly.
Under single premium policies/ fully paid up policies , guaranteed addition is
payable in full for the year of surrender/ death . i.e. if duration of surrender/death
is 5 year 1 day, then GA will be taken into account for 6 years.
• As per clarification received from actuarial Dept letter dt. 20/12/2002 ref: act/ps,
eventhough the premium due on the date of commencement of risk i.e policy
anniversary is not paid and provided premiums for the waiting period has been paid
and if policy is surrendered or death takes place on and after risk commencing policy
anniversary , then guaranteed addition is payable.
 Example ;- DOC- 1/1/2000 , mode – HLY, date of commencement of risk- 1/1/2003,
FUP- 1/2003
Under above case, if proposer applies for surrender on 1/1/2003 or after and
eventhough premium due 1/2003 has not been paid , it is presumed that risk has
commenced and guaranteed addition for 3 years will be taken into account for
calculation of GSV/SSV or death claim.
• As per clarification dt. 19/10/2004 ref: co/act/1976, guaranteed addition will be
payable on death or maturity; whichever is earlier. Maturity claim will be due on
policy anniversary coinciding with or immediately following the completion of age 26
years.

J) LOYALTY ADDITION

After commencement of the risk under the policy, on the life assured surviving stipulated
date of maturity or on date of death, this policy may be eligible for payment of loyalty
addition at such rate declared from time to time.
No loyalty addition will be payable in the event of policy is being surrendered or made paid
up.

K) SURVIVAL BENEFIT

The sum assured under this plan will be paid in instalments as detailed below , provided the
policy is in full force for full sum assured as on end of premium paying term and life assured is
alive on said date.

% of sum assured payable On the policy anniversary coinciding with

or immediately following the completion of
years by life assured
20% 18 years
20% 20 years
30% 22 years
30% 24 years
Maturity claim 26 years

In case, policy becomes paid up before premium paying term ( except last 6 months
premiums not paid for last year of premium paying term) then survival benefits are not
payable. Paid up value + vested guaranteed addition will become payable on the policy
anniversary immediately after completion of age 26 years by life assured.
As per co/act/1976/4 dt 19/10/2004, above survival benefits are payable on the policy
anniversary coinciding with or immediately following the completion of 18, 20,22,24 years .

L ) MATURITY CLAIM

1) POLICY IS IN PAID UP CONDITION BEFORE date of commencement of risk

If policy is in lapsed condition before the date of commencement of risk and atleast 3 years
premiums have been paid , then GSV is payable as maturity claim. Policy do not acquire
paid up value.
No question of payment of guaranteed addition.

2) AFTER RISK COMMENCEMENT DATE / INFORCE AS ON DATE OF PREMIUM PAYING

TERM


If all premiums during premium paying term have been paid and sum assured have been
paid in 4 instalment as survival benefit , then on policy anniversary after completion of 26
years by life assured, maturity claim will be guaranteed addition for full policy term +
loyalty addition , if any. Kindly note that, sum assured or any % of sum assured is NOT
payable again.
Policy will mature on policy anniversary coinciding with or immediately following the
completion of 26 years. In short date of maturity = ( date of birth + 26 ) = on or next policy
anniversary.
1) POLICY LAPSED AFTER RISK COMMENCEMENT DATE / PAID UP AS ON DATE OF
PREMIUM PAYING TERM


If premiums have been paid upto risk commencement date and further premiums have not
been paid , and as per special provision policy has vested in life assured, then paid up value
as shown above is payable along with GUARANTEED ADDITION as on date of maturity.
No loyalty addition is payable.

M) DEATH CALIM

1) DEATH BEFORE COMMENCEMENT OF RISK

In case, the life assured shall die before the risk commencement date, the policy shall
stand cancelled and in such event provided the policy is then in full force ( means death
takes place before FUP or within days of grace only) sum of money equal to all premiums
paid excluding extra premium will become payable as death claim. No need to recover 1st
year premium.
If policy is in lapsed condition, i.e death after days of grace, then nothing is payable. But if
3 years premiums have been paid, then GSV is payable.
where premium waiver clause have become operative due to expiry of proposer and if life
assured i.e child also expire before deferred date, not only the actual premiums paid , but
premiums which were waived till the date of death of the child should also be refunded.
Further premiums upto date of vesting can not be refunded.
Death claim is payable to proposer or legal heirs of proposer.

2) ON AND AFTER RISK COMMENCEMENT DATE
policy is in full force

If death occurs on or after commencement of risk provided policy is in force i.e death befor
FUP or within days of grace or after application of claim concessions or between premium
paying term is over and date of maturity, the death claim will be = full sum assured +
guaranteed addition + loyalty addition if any.
Any amount paid by way of SB claim instalment will NOT be deducted from claim amount.
As per co/act/2071 dt. 3/5/2006, while calculating guaranteed addition, guaranteed
addition is payable for the year of death fully, if premiums to complete the policy
anniversary are recovered. Under single premium policies or fully paid up policies,
guaranteed addition is payable in full for the year of death. i.e. if duration of death is 5
year 1 day, then GA will be taken into account for 6 years.
if policy is accepted with PWB or term rider , then claim will be processed accordingly.
Claim concessions are not applicable for PWB + term rider.

3) ON AND AFTER RISK COMMENCEMENT DATE
policy is in paid up

In case policy have become paid up during premium paying term, then paid up value +
guaranteed addition is payable as death claim.
As per co/act/2071 dt. 3/5/2006, while calculating GA under paid up policy,
proportionate guaranteed addition is payable for no of months premiums received in
the policy year where premiums paid partly.
N) CLAIM CONCESSIONS AND CHAIRMAN’S CLAIM RELAXATION RULE

1) BEFORE COMMENCEMENT OF RISK

Basic and extended claim concessions will NOT be applicable to this plan, before the risk
under the policy has commenced.
The chairman’s claim relaxation rules 1987 are applicable as :- where the premium have
been paid for at least 2 years but less than 3 years and where death of life assured takes
place after expiry of days of grace but within a period of 12 months from FUP, all premiums
paid hereunder excluding premiums for PWB will be refunded on ex-gratia basis.

2) ON AND AFTER COMMENCEMENT OF RISK



Basic and extended claim concessions will be applicable to this plan, after the risk under
the policy has commenced
The 3 years or 5 years period for which premiums have been paid , should be reckoned from
date of commencement and not from risk commencement date of policy for deciding claim
concession.
The chairman’s claim relaxation rules 1987 are applicable as :- where the premium have
been paid for at least 2 years but less than 3 years and where death of life assured takes
place after expiry of days of grace but within a period of 12 months from FUP, death calim
will be settled as per plan 14.

O) REVIVAL OF POLICY

If age of life assured as on date of revival is less than 10 yrs( LBD), then DGH in f. no 720
will be required.
If age of life assured as on date of revival is equal or more than 10 years, then dgh in f. no
700 will be required.
Underwriting guidelines in respect of insurance on the lives of Minor/ major children were
revised as per CO/ACT/2090/4 dt. 1/11/2006. The said guidelines were also made
applicable for revival of policies under risk plan for minor as per letter dt.27/1/2007 of
CO/CRM/PS.
Medical requirement Chart for new business/Revival is as followes-(co/U and R/25/2008
dt.4/12/2008,

SUM ASSURED/ SUM AGE GROUP

TO BE REVIVED 0 TO 4 YRS 5 TO 9 YRS 10 TO 17 YRS
UP TO 8 lacs No FMR No FMR, but height & No FMR, but height & weight
DGH in f. no 720 weight in ACR/DGH in f. in ACR/DGH in f. no 720 and
no 720 and copy of latest copy of latest school report
school report
From 800001 to 1)No FMR 1)No FMR, but 2)height & 1)Juvenile FMR
Rs.25 lakh 2)Immunization weight in ACR/DGH in f. 2)copy of latest school report
record of child no 720 and 3)copy of 3) DGH in f. no 720
3)DGH in f. no 720 latest school report
From 2500001 to 1)Juvenile FMR 1) Juvenile FMR 1) Juvenile FMR
4999999 2)Immunization 2)copy of school 2)copy of school
record of child report report
3) copy of school 3)DGH in F. no 720 3)DGH in F. no 720
report
4)DGH in f. no 720
From 50,00,000 to 1)Juvenile FMR 1) Juvenile FMR 1) Juvenile FMR
1,00,00,000 2)Immunization 2)ECG,Haemogram 2)ECG,Haemogram
recordof child 3)serum creatine, RUA 3)SBT-13
3) copy of school 4)elisa for HIV,HbsAg 4)copy of latest school report
report 5)copy of latest school 6) DGH in f.no 720
4)DGH in f. no 720 report
6) DGH in f.no 720

Other conditions for Revival are as followes:--

1) Revivals under risk plan for minor’s will be allowed to standard and sub-standard lives
attracting EMR up to class III due to overweight only. Proposals on the lives of overweight
minors attracting EMR class IV and above may be referred to CUS. See new rules for BMI.
2) The life to be assured should have properly developed physique. Family history, personal
history and medical reports are satisfactory.
3) Clause 10(A) is to imposed.
4) Premium waiver benefit (PWB) under children plans is allowed on the lives of parents
under Non-medical (special) and Non-medical (general) scheme to professionals.
5) Revival of policies to major children/ students up to age 25 yrs(NBD) is allowed up to
sum to be revived of Rs. 8 lakh under Non-medical(general) under all plans excluding
plan no 43,52,58,164,167,177, term rider and critical illness rider plans.
6) Kindly note that revival requirements under Minor’s policies are same as under
new proposals, irrespective whether risk has commenced or not.
7) The concept of BMI (Body Mass Index) for rating build of the life assured is introduced
w.e.f.21/6/2007. The BMI build chart for Minor lives gives only standard ranges of BMI for
different ages ( from age 5 to 17 years) for Boys and Girls separately. This chart is
applicable for underwriting both Medical as well as Non-medical proposals. The present
practice of allowing insurance cover to sub-standard minor lives attracting EMR up to class
III on account of overweight stands withdrawn. Revival of policies issued to Minor lives
under all eligible plans can be allowed if they do not attract any EMR on account of any
adverse health factors with ratings as shown below:1) at standard rates if their BMI falls
within the standard BMI for their ages2) with appropriate extra premium if their BMI is more
than the upper limit of the standard range for their age(over weight minors) . to be referred
to ZUS or central office.
3) revival to be declined if BMI is less than the lower limit of the standard range for their
age( under weight minors)

P) ASSIGNMENT OF POLICY


As per co/mktg/cs dt 11/3/2002, policies issued on the lives of minors and where
declaration as per f. no 3293-A is given by proposer and policy clause 10( a) as per f. no
3130(a) is placed on the policy document, proposer can assign the policy in favour of an
educational trust or institution to secure loan for the benefit of life assured.
METHOD OF PREMIUM CALCULATION UNDER PLAN 113- WITH PREMIUM WAIVER BENEFIT
AND TERM RIDER.
Steps :-
1) Calculate net annual premium for the basic sum assured after allowing for mode rebate
and sum assured rebate.
2) Calculate the additional premium for PWB and term rider for the net annual premium ,
calculated in step 1 and allow the mode rebate only.
3) The total annual premium will be the sum of net annual premium for the basic plan +
additional annual premium for PWB and term rider.

EXAMPLE 1:- Policy no - ………………. , plan and term 113-21-13, age at entry of life assured
– 5 yrs LBD, Sum assured 25,000, age of proposer: 30 yrs, deferment period – 18 yrs, mode
of payment – half-yearly,
Answer:-
a) Basic premium calculation:-

Tabular premium for plan 113-21 for age 5 years rs. 84.15
Less : mode rebate 1.5% - 1.262
and sum assured rebate - 1.00
81.888
Multiply by sum assured in thousands x 25
2047.20
b) PREMIUM WAIVER BENEFIT

Tabular premium rate for PWB for age group of proposer upto 30 yrs
And deferment period of 18 yrs will be -------------------------------- --- Rs. 2.95

Less :- mode rebate @ 1.5% - 0.044

2.906

PWB premium for waiver of net annual premium of Rs. 2047.20 x 2.906 = 59.49
100

c) FAMILY BENEFIT ( TERM RIDER)

MAXIMUM TERM RIDER SUM ASSURED WILL BE 20% OF SA OR RS. 50000 whichever is
lower. Here term rider sum assured is 5000.

Tabular premium rate for TERM RIDER for age group of proposer upto 30 yrs
And deferment period of 18 yrs will be -------------------------------- --- Rs. 2.70

Less :- mode rebate @ 1.5% - 0.040

2.660
Multiply by sum assured in thousands x 5
13.30

Net instalment premium = 2047.20 + 59.49 + 13.30 = 2119.99

Half- yearly premium will be =1060/-

Instalment premium is to be rounded off to the nearest rupee.

The mode rebate should be calculated upto 3 decimal points
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
TABULAR ANNUAL PREMIUM PER 1000 BASIC SUM ASSURED UNDER—
MONEY BACK CHILDREN ASSURANCE PLAN- 113

AGE OF LIFE ASSURED (LBD) ANNUAL PREMIUM SINGLE PREMIUM

0 56.75 460.95
1 61.20 485.65
2 66.20 511.75
3 71.90 539.35
4 76.85 568.55
5 84.15 599.30
6 92.70 631.65
7 102.85 665.75
8 115.00 701.55
9 124.70 739.15
10 142.15 778.45

PREMIUM WAIVER BENEFIT ANNUAL PREMIUM RATES

ADDITIONAL ANNUAL PREMIUM TO SECURE THE BENEFIT OF CESSATION OF EACH OF RS.
100/- OF PREMIUM UNDER PLAN 113 FROM THE DATE OF THE PROPOSER’S DEATH TO
THE END OF THE PREMIUM PAYING TERM

DEFERMENT PROPOSER’S AGE GROUP

PERIOD UP TO 25 26 TO 30 31 TO 35 36 TO 40 41 TO 45 46 TO 50
YEARS YEARS YEARS YEARS YEARS YEARS

8 2.65 2.75 3.05 3.60 4.65 6.35

9 2.65 2.80 3.15 3.70 4.95 6.90
10 2.65 2.85 3.25 4.05 5.50 7.85
11 2.70 2.90 3.30 4.20 5.85 8.50
12 2.70 2.90 3.40 4.40 6.25 9.15
13 2.70 2.95 3.50 4.65 6.65 9.85
14 2.70 3.00 3.60 4.85 7.05 10.60
15 2.75 3.10 3.80 5.20 7.65 11.55
16 2.80 3.20 3.95 5.50 8.10 12.35
17 2.85 3.25 4.10 5.75 8.60 13.15
18 2.90 3.35 4.25 6.05 9.10 13.95

CLASS I EXTRA PREMIUM RATES FOR PREMIUM WAIVER BENEFIT APPLICABLE TO PLAN 113

TO BE APPLIED ON ANNUAL PREMIUM TO SECURE THE BENEFIT OF CESSATION OF EACH OF

RS. 100/- OF PREMIUM.
DEFERMENT PROPOSER’S AGE GROUP
PERIOD UP TO 25 26 TO 30 31 TO 35 36 TO 40 41 TO 45 46 TO 50
YEARS YEARS YEARS YEARS YEARS YEARS
4
5
6
7
8 0.10 0.10 0.20 0.30 0.45 0.75
9 0.10 0.15 0.20 0.35 0.55 0.90
10 0.15 0.15 0.25 0.40 0.65 1.05
11 0.15 0.20 0.30 0.45 0.75 1.20
12 0.20 0.20 0.30 0.50 0.80 1.35
13 0.20 0.25 0.35 0.55 0.90 1.50
14 0.20 0.25 0.40 0.60 1.00 1.65
15 0.20 0.30 0.40 0.70 1.15 1.85
16 0.25 0.30 0.45 0.75 1.25 2.00
17 0.25 0.35 0.50 0.80 1.35 2.15
18 0.25 0.35 0.55 0.90 1.45 2.35
IF PWB OR TERM RIDER BENEFIT ACCEPTED WITH EXTRA , THEN SAME SHOULD BE ADDED IN
TABULAR PREMIUM FOR PWB/ TERM RIDER.
TERM RIDER ANNUAL PEWMIUM FOR RS. 1000 SUM ASSURED UNDER 159

DEFERMENT PROPOSER’S AGE GROUP

PERIOD UP TO 25 26 TO 30 31 TO 35 36 TO 40 41 TO 45 46 TO 50
YEARS YEARS YEARS YEARS YEARS YEARS
8 2.10 2.55 3.40 5.25 8.55 13.95
9 2.10 2.55 3.45 5.40 8.85 14.40
10 2.15 2.65 3.65 5.80 9.55 15.50
11 2.15 2.65 3.75 5.95 9.85 16.00
12 2.15 2.70 3.85 6.15 10.20 16.50
13 2.15 2.70 4.00 6.40 10.55 17.05
14 2.15 2.75 4.10 6.60 10.90 17.60
15 2.20 2.90 4.30 7.00 11.50 18.50
16 2.20 2.95 4.45 7.25 11.85 19.00
17 2.25 3.05 4.60 7.50 12.25 19.55
18 2.25 3.10 4.80 7.75 12.60 20.10

CLASS I EXTRA PREMIUM RATES FOR TERM RIDER APPLICABLE TO PLAN 113

DEFERMENT PROPOSER’S AGE GROUP

PERIOD UP TO 25 26 TO 30 31 TO 35 36 TO 40 41 TO 45 46 TO 50
YEARS YEARS YEARS YEARS YEARS YEARS
4
5
6
7
8 0.35 0.50 0.75 1.20 1.95 3.05
9 0.35 0.50 0.75 1.25 2.00 3.15
10 0.35 0.50 0.80 1.35 2.15 3.40
11 0.40 0.55 0.85 1.40 2.25 3.45
12 0.40 0.55 0.90 1.45 2.30 3.55
13 0.40 0.60 0.95 1.50 2.40 3.65
14 0.40 0.60 1.00 1.60 2.50 3.80
15 0.45 0.65 1.05 1.70 2.65 0
16 0.45 0.70 1.10 1.75 2.70 0
17 0.50 0.70 1.15 1.80 2.75
18 0.50 0.75 1.20 1.90 2.80
IF PWB OR TERM RIDER BENEFIT ACCEPTED WITH EXTRA , THEN SAME SHOULD BE ADDED IN
TABULAR PREMIUM FOR PWB/ TERM RIDER.

VIDE CO/ACT/1850/4 DT 17/1/2003, TERM RIDER PREMIUMS UPTO AGE 60 FOR ANNUAL AND
SINGLE PREMIUM RATES AND EXTRA PREMIUM RATES FOR TERM RIDER ARE GIVEN

TERM RIDER ---SINGLE PEWMIUM FOR RS. 1000 SUM ASSURED UNDER 113

AS PER CO/ACT/1554/4 DT 24/1/1995

DEFERMENT PROPOSER’S AGE GROUP

PERIOD UP TO 25 26 TO 30 31 TO 35 36 TO 40 41 TO 45 46 TO 50
YEARS YEARS YEARS YEARS YEARS YEARS
8 12.10 14.85 20.25 31.65 51.40 82.10
9 12.90 16.00 22.35 35.35 57.50 91.60
10 13.70 17.20 24.50 39.10 63.60 100.95
11 14.45 18.45 26.75 42.85 69.65 110.15
12 15.20 19.70 29.00 46.70 75.70 119.15
13 15.95 21.05 31.35 50.55 81.70 127.95
14 16.70 22.40 33.70 54.40 87.65 136.50
15 17.50 23.80 36.10 58.25 93.50 144.75
16 18.30 25.25 38.55 62.15 99.25 152.75
17 19.10 26.70 41.00 66.00 104.90 160.40
18 19.95 28.20 43.45 69.80 110.40 167.70