Page 52 - Life Insurance Today July - December 2020

The amount payable shall 19. Interest on delayed : The rate of interest on
be as follows: payment of premiums delayed payment of
premiums shall be as per
For Single Premium: The
Policy Cancellation Value the Insurer’s policy for
acquires immediately similar products.
after receipt of Single The Insurer may suitably modify the definitions and other
Premium and is clauses of the policy contract prospectively based on the
calculated as follows: regulations or guidelines that may be issued by the Authority
from time to time.
= 70% X Single Premium Paid
Unexpired policy term All Life Insurers permitted to transact new business shall
x mandatorily offer the standard product with effect from 1st
Original policy term
January, 2021. The product may be filed by the Insurers
Single Premium shall be latest by 1st December, 2020. However, Insurers may file
inclusive of extra the product earlier and offer the same on approval even
premium, if any. before 1st January, 2021.
Limited Premium This is issued with the approval of the Competent Authority.
Payment Term (LPPT): 5
and 10 years: Policy Chief General Manager (Life)
Cancellation Value
acquires if at least two (2) Guidelines on settlement of Life
consecutive full years’
premiums are paid and is Insurance Claims to the victims of Heavy
calculated as follows:
rainfall and floods in Andhra Pradesh,
= 70% X Single Premium Paid
Unexpired policy term Telangana, Maharashtra and Karnataka.
x
Original policy term IRDA/LIFE/GDL/MISC/265/11/2020
Total Premiums Paid shall Date:04-11-2020
be inclusive of extra
premiums, if any. As a result of recent havoc created by heavy rainfall and
floods there are reports of loss of human lives and loss of
No policy cancellation
value shall be payable in belongings in the affected Districts of primarily the states
respect of regular of Andhra Pradesh, Telangana, Maharashtra and
premium policies. Karnataka. In order to extend every possible facilitation for
quick and timely settlement of life insurance claims, you are
15 Loan : No loan will be allowed advised to take the following actions immediately in all the
against the policy
states affected due to this disaster.
16. Optional Riders : Approved Accident 1. Nominate a senior level officer who would act as a nodal
Benefit and Permanent officer in the state to liaise with the state administration
Disability Benefit Riders
can be attached. to facilitate identification of policyholders among the
deceased due to floods. The nodal officer should
17. Pricing : As per the F&U contact the Chief Secretary/Officer concerned of the
18. Underwriting and : As per the Board state immediately and be in regular contact thereafter.
Medical Requirements Approved Underwriting
Policy of the Insurer, 2. Similarly, a nodal officer may be appointed in affected
subject to above criteria district to liaise with the DM/District Administration.
and any statutory The contact particulars of all the Nodal Officers shall
requirements. be conveyed to the Authority.
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52 July - December 2020 Life Insurance Today