Development Insurance Plan

Development Insurance plan is an insurance plan which provides life cover to members of a
Development Agency for a term of one year. On the death of any member of the group insured during
the year of cover, a lump sum is paid to those member beneficiaries to help meet some of the
immediate financial needs following their loss.

Eligibility

  Members of the development agency and their spouses with:

    - Minimum age at the start of the policy 18 years last birthday

    - Maximum age at the start of policy 50 years last birthday

Employees of the Development Agency are not eligible to join the group. The group to be covered
is only eligible if it contains more than 500 members.

   

Premium Payments

  The premium to be paid will be quoted per member in the group and will be the same for all
members of the group.
The premium can only be paid by the Development Agency as a single lump sum that includes all
premiums for the group to be covered. Cover will not start until the premium and all the member
information in our specified format has been received.

  The premium rate is Rs. 25 per Rs. 10,000 of lump sum, per member.

Benefits

  On the death of each member covered by the policy during the year of cover a lump sum equal to
the sum assured will be paid to their beneficiaries or legal heirs. Where the death is as a result of an
accident, an additional lump sum will be paid equal to half the sum assured. There are no benefits
paid at the end of the year of cover and there is no surrender value available at any time.

   

The role of the Development Agency

  Due to the nature of the groups covered, HDFC Standard Life will be passing certain administrative
tasks onto the Development Agency. By passing on these tasks the premium charged can be lower.
 These tasks would include:

  Submission of member data in a specified computer format

Collection of premiums from group members

Recording changes in the details of group members

Disbursement of claim payments and the mortality rebate (if any) to group members

These tasks would be in addition to the usual duties of a policyholder such as:

Payment of premiums

Reporting of claims

Keeping policy holder information up to date

  Training and support will be available to give guidance on how to complete the tasks appropriately.
Since these additional tasks will impose a burden on the Development Agency, the Development
Agency may charge a Rs. 10 administration fee to their members.

   

Prohibition of rebates

  Section 41 of the Insurance Act, 1938 states

  No person shall allow or offer to allow, either directly or indirectly, as an inducement to any
person to take out or renew or continue an insurance in respect of any kind of risk relating to
lives or property in India, any rebate of the whole or part of the commission payable or any
rebate of the premium shown on the policy, nor shall any person taking out or renewing or
continuing a policy accept any rebate, except such rebate as may be allowed in accordance with
the published prospectus or tables of the insurer

If any person fails to comply with sub regulation (previous point) above, he shall be liable to
payment of a fine which may extend to rupees five hundred

Tax Benefits
INCOME TAX GROSS ANNUAL HOW MUCH TAX HDFC STANDARD LIFE

SECTION SALARY CAN YOU SAVE? PLANS

Sec. 80C Across All income Upto Rs. 33,990 All the life insurance

Slabs saved on investment plans.

of

Rs. 1,00,000.

Sec. 80 CCC Across all income Upto Rs. 33,990 All the pension plans.

slabs. saved on Investment

of Rs.1,00,000.

Sec. 80 D* Across all income Upto Rs. 3,399 saved All the health insurance

slabs on Investment of riders available with the

Rs. 10,000. conventional plans.

TOTAL SAVINGS

POSSIBLE ** Rs37,389

Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under Sec. 80
D, calculated for a male with gross annual income
exceeding Rs. 10,00,000.

Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely tax-free,

subject to the conditions laid down therein.