Page 90 - IC23 life insurance application

assured. In this case double the sum assured will be paid in case of accidental

death.

CLAIM SETTLEMENT

Under LIC's Group Insurance Scheme the claim settlement is simple and prompt and

is settled on the strength of death certificate duly forwarded by the employer

confirming the death but this is not so in P.F. Scheme, since the payment depends

on the reconciliation of all the accounts of the members and hence the delay.

GROUP INSURANCE SCHEME

Group Insurance Schemes marketed by LIC of India are virtually Term Insurance

Schemes renewable every year and are offered to homogenous and identifiable

groups at a very low cost. Progressive employers use it as tool to retain experienced

and trained staff and executives in their employment thus reduce the turn over.

Group Insurance Scheme provide tax benefits both to the employer and the

employees.

The object of various Group Insurance Schemes is to provide for a fixed sum

assured on death of a member covered under the scheme and is offered under One

Year Renewable Term Assurance Plan.

Some of the schemes with amount of cover are given below:-

a) For a member of Superannuation scheme, an employer can take out a policy

where sum assured is fixed by a standard formula, subject to a maximum of

Rs.4,00,000/-.

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