Page 99 - IC23 life insurance application

It is heartening to note that with the introduction of the computer in the L.I.C. the

endorsement on the policy is not considered necessary. The insurer pays the claim

merely on receipt of the discharge voucher duly signed.

The survival benefit can take different forms under different types of policies. It can

be the payment of cash option under a Children Deferred Assurance policy. It is true

that the payment of cash option is the end of the policy contract, while the payment

of survival benefit claim does not mean the end of the contract. However it is

important to note that payment of cash on vesting in a CDA policy is merely an

option available to the new owner of the policy (The Child becomes the owner of the

policy on the vesting date). He is expected to continue to keep the policy in force by

payment of regular premium to be entitled to the benefit under the policy. This policy

has been taken thoughtfully by his parents at an early age to give him the benefit of

low premium. It is true that the cash option is rarely exercised and the policy

continues to be in force as originally intended.

In case of childrens' money back policy (plan no.113), the survival benefits are paid

during the last 6 years of the policy duration and the procedure is the same as stated

above.

In case of Jeevan Sneha, which is especially designed for women, the policy holder

has an option of not drawing the survival benefit on the due date. She can exercise

her right to invest the same with LIC at 11% cumulative rate of interest per annum.

Maturity Claim :

It is a final payment under the policy as per the terms of the contract. Any insurer is

under obligation to pay the amount on the due date. Therefore the intimation of

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