Modification of LIC plans as per IRDA new Product Regulation-2019
Published on: April 13, 2020
IRDAI has recently brought about new Product Regulations (2019), and keeping this in mind LIC has decided to do some changes in its existing plans. Unique identification and table numbers of existing plans have been modified.
We have tried to explain the modifications in a simpler language, which are given below.
Definition of Sum Assured on Death has changed. Earlier it was- higher of Basic Sum Assured or 10 times of annualized premium; now it has been changed to- higher of basic Sum Assured or 7 times of annualized premium.
With Launch of modified plans, existing riders are available under the respective plans as earlier, in addition to it, New Riders have been allowed which given in following table.
| Riders | Plans |
|---|---|
Premium waiver benefit Rider |
Children money back plan (932) Bima Shree Plan (948) |
Accident Benefit Rider |
Money Back Plan (920)) Money Back Plan (921) Bima Shree Plan (948) |
Critical Illness Rider |
Since PWB rider is applicable to policies in which policy holder is a minor. So policies which can be availed by less than 18 year olds have option of this rider.
Maturity and Death Benefit have been allowed to be taken (received) in installments. Now maturity as well as death claim amount can be requested to be paid in installments equated over 2-10 years period.
The period for Revival Plan has been extended from 2 years to 5 years.
Now the policy will obtain (acquire) Surrender Value if the premium has been paid for 2 consecutive years (earlier it had to be paid for 3 years). In view of this change, the policy will now become paid up and policy loan will be available after the payment of 2 full years’ premiums. Guaranteed Surrender Value factors have been accordingly.
Grace period has been changed from One Calendar month but not less than 30 days to 30 days for yearly/ half yearly/quarterly method of payment.
The relaxation of claim payment under discontinued policy will not apply for deaths where the cause of death is suicide and it has been mentioned under the Suicide clause.
These modifications will apply to policies which are issued on and after 01-Feb-2020. Above are highlights of modifications, in case of any specific plan related clarification, please write in comment box below.
Comments & Reviews (0)