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 that member’s 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