LIFE INSURANCE CORPORATION OF INDIACENTRAL OFFICE

Dept: Product Development "Yogakshema"Jeevan Bima MargMumbai - 400 021

Date: 15th April, 2021Ref: CO/PD/171

To,All HODs of Central OfficeAll Zonal OfficesAll Divisional OfficesAll Branch Offices & Satellite OfficesMDC, ZTCs, STCs, NIA andAudit & Inspection Depts. of Zonal Offices.

Re: INTRODUCTION OF LlC's SARAL JEEVAN BIMA (Plan No. 859)

1. INTRODUCTION:

IRDAI has issued Guidelines on Standard Individual Term Life Insurance Product, "Saral JeevanBima" vide which all life insurers are' directed to offer a Standard Individual Term Life InsuranceProduct mandatorily. The plan features and parameters under this product have been prescribed bythe Authority.

In view of the above, it has been decided to introduce Lie's SARAL JEEVAN BIMA (Plan No.859)with effect from 16/04/2021.

The Unique Identification Number (UIN) for LlC's SARAL JEEVAN BIMA plan is 512N341V01.Thisnumber has to be quoted in all relevant documents furnished to the Policyholders and other users'(public, distribution channels).

LlC's SARAL JEEVAN BIMA plan is a Non-Linked, Non-participating, Individual Pure RiskPremium Life Insurance Plan.

This plan can be purchased Offline as well as Online.

The benefits and other details of the plan are given below:

2. ELIGIBILITY CONDITIONS AND RESTRICTIONS FOR BASE PLAN:

a) Minimum Age at entryb) Maximum Age at entry

: 18 years (Last Birthday): 65 years (Last Birthday)

c) Maximum age at Maturity : 70 years (Last Birthday)d) Minimum Basic Sum Assured : Rs. 5,00,000/-.e) Maximum Basic Sum Assured: Rs 25,00,000/- per life basis.

The Basic Sum Assured shall be in multiples of Rs 50,000/-.

f) Policy Term : 5 to 40 yearsg) Premium Paying Term:

Regular PremiumLimited PremiumSingle Premium

: Same as policy term: [5] years and [10] years: Lumpsum

- 1 -

The maximum sum assured limit under this plan is on per life basis. Thus the total Basic SumAssured under all the policies issued to an individual under this plan shall not exceed Rs. 25lakhs.

Date of commencement of Risk/Date of issuance of policy is a date when a proposal afterunderwriting is accepted as a policy and the contract gets effected.

Waiting Period: means a period of 45 days from the Date of Commencement of Risk.

3. BENEFITS UNDER THE BASE PLAN:

The benefits payable under an inforce policy are as under:

A) Death Benefit:

(i) During waiting period of 45 days from the Date of Commencement of Risk:

a) On Death (due to any reason other than accident) during waiting period, an amount equalto 100% of all premiums received excluding taxes, if any, shall be paid.

b) On Death due to accident provided all due premiums have been paid, "Sum Assured onDeath" shall be payable to the nominee.

For Regular Premium and Limited Premium Payment policies: "Sum Assured on Death"is defined as the highest of:• 10 times of annualized premium; or• 105% of all the premiums paid as on date of death; or• Absolute amount assured to be paid on death i.e. 100% of Basic Sum Assured.

For Single Premium policies: "Sum Assured on Death" is defined as the higher of:• 125% of Single Premium.• Absolute amount assured to be paid on death i.e. 100% of Basic Sum Assured.

Premiums referred above shall not include any taxes and extra amount chargeable underthe policy due to underwriting decision, if any.

(ii)After waiting period of 45 days from the Date of Commencement of Risk:

On Death after waiting period during the policy term including death due to accident providedall due premiums have been paid, "Sum Assured on Death" shall be payable to the nominee,

Sum Assured on Death is as defined in para 3 A (i) b) above.

An "Accident" for the purpose of this policy is defined as "An Accident is a sudden, unforeseenand involuntary event caused by external, violent and visible means."

B) Maturity Benefit:

On survival of the life assured to the end of the policy term, no maturity benefit is payable.

4. RIDERS:

No riders are available under this plan.

- 2 -

5. MODE OF PREMIUM PAYMENT:

Premiums can be paid either under Regular Premium, Limited premium or Single Premium paymentoptions under this plan. In case of Regular Premium and Limited Premium, the premium can be paidregularly during the Premium Paying Term with modes of premium payment Yearly, Half Yearly andMonthly (only under ECS/NACH). .

6. PREMIUM RATES:

i. Base Plan: The tabular Premium rates per thousand Basic Sum Assured for different premiumpayment options is enclosed as Annexure 1.

Particulars DetailsAnnexure-1 (Page-1) Regular PremiumAnnexure-1 (Page-2) Single PremiumAnnexure-1 (Page-3) Limited Premium (PPT=10 years)Annexure-1 (Page-4) Limited Premium (PPT=5 years)

ii. Class - I extra: The Class-I extra rates, which are applicable for both New Business as well asRevival stage for different premium payment options is enclosed as Annexure 2.

Particulars DetailsAnnexure-2 (Page-1) Regular Premium NB and Revival stage bothAnnexure-2 (Page-2) Single Premium NB stageAnnexure-2 (Page-3) Limited Premium (PPT=1 0 years) NB stageAnnexure-2 (Page-4) Limited Premium (PPT=5 years) NB stage

Revival stage class-I extra premium under Limited Premium (PPT=10 years)

Annexure-2 (Page-5) Outstanding (PPT= 9 years)Annexure-2 (Page-6) Outstanding (PPT= 8 years)Annexure-2 (Page-7) Outstanding (PPT= 7 years)Annexure-2 (Page-B) Outstanding (PPT= 6 years)Annexure-2 (Page-9) Outstanding (PPT= 5 years)Annexure-2 (Page-1 0) Outstanding (PPT= 4 years)Annexure-2 (Page-11) Outstanding (PPT= 3 years)Annexure-2 (Page-12) Outstanding (PPT= 2 years)Annexure-2 (Page-13). Outstanding (PPT= 1 years)

Revival stage class--l extra premium under Limited Premium (PPT=5 years)

Annexure-2 (Page-14) Outstanding (PPT= 4 years)Annexure-2 (Page-15) Outstanding (PPT= 3 years)Annexure-2 (Page-16) Outstanding (PPT= 2 years)Annexure-2 (Page-17) Outstanding (PPT= 1 years)

7. GRACE PERIOD (APPLICABLE FOR REGULAR AND LIMITED PREMIUM PAYMENTPOLICIES):

A grace period of 30 days shall be allowed for payment of yearly or half-yearly premiums and 15days for monthly premiums from the date of First Unpaid Premium.

If the death of the Life Assured occurs within the grace period but before the payment of premiumthen due, the policy will be treated as inforce and the benefits will be paid after deduction of the saidunpaid premium and also the unpaid premium/s falling due before the next policy anniversary.

- 3 -

If the premium is not paid before the expiry of the days of grace, the policy lapses. Under suchpolicies, all the benefits shall cease after the expiry of grace period and nothing shall be payable.

In case of death of Life Assured under an inforce policy wherein all the premiums due till the date ofdeath have been paid and where the mode of payment of premium is other than yearly, balancepremium(s), if any, falling due from the date of death and before the next policy anniversary shall bededucted from the claim amount.

In case of death due to Suicide, provision of Para 19 shall be applicable.

8. REBATES/EXTRA LOADING:

The rebates/loadings for base plan are as under:

(i) Rebate for High Sum Assured:

Basic Sum Assured (B.S.A) (Rs.) Rebate (Rs.)5, 00,000 to 9, 50,000 Nil10,00,000 to 14, 50,000 0.10 %0 B.S.A15,00,000 to 19, 50,000 0.20 %0 B.S.A20, 00,000 and above 0.25 %0 B.S.A

(ii) Rebate under Online Sale:

Proposals completed under online sales without any assistance of Agent / intermediary shall beeligible for rebate on tabular premium at the following rates:

Premium Paying Term Online Sale (Rate of rebate)Single Premium 2.00%5 to 9 years 5.00%10 to 14 years 6.00%15 years and above 7.00%

(iii) Modal Loading (applicable for Regular and Limited Premium payment):

Mode Loading as a % of tabular annual premiumYearly NilHalf-Yearly 2%Monthly (ECS/NACH) mode 3%

9. CORPORATION'S INSURANCE SCHEME FOR EMPLOYEES (CIS) REBATE:

Proposals completed under Corporation's Insurance Scheme (CIS) with regard to employees of theCorporation and its Subsidiaries/Step Down Subsidiaries/Associates Companies, as per theprevailing policy of the Corporation in this regard shall be eligible for CIS rebate on the tabularpremium at the following rates provided policy is not taken through any Agent! Corporate Agent!Broker, Insurance Marketing Firms and online Sale:

Premium Paying Term CIS Rebate as a % of tabular premiumSingle Premium 2.00%

5 to 9 years 5.00%10 to 14_years 6.00%

15 Years and above 7.00%

- 4 -

Instructions in this regard, as applicable from time to time shall be issued by Actuarial Department,Central Office.

10. COMMISSION PAYABLE TO INTERMEDIARIES & CREDIT TO DEVELOPMENT OFFICERS:

a) Commission payable to Agents, Corporate Agents, Brokers and Insurance MarketingFirms (IMFs) (as a percentage of premium excluding taxes, if any) during the PremiumPaying Term are as under:

i. Regular/Limited Premium:

Premium Paying Term 1st Year Subsequent Years5 to 9 years 5.0.0.% 5.0.0.%

10. to 14 years 10..0.0.% 5.0.0.%15 years and above 12.50.% 5.0.0.%

Bonus Commission: 40.% of 1st year commission.

ii. Single Premium:

Commission shall be @ 2% of the Single Premium paid (net of any applicable taxes). Nobonus commission shall be payable under Single Premium policy.

b) Development Officer's Credit (as a %of the first year premium net of taxes) are as under:

i. Regular/Limited Premium:

Credit (as a % of the first yearPremium Paying Term premium net of taxes)

5 to 9 years 15%10. to 14 years 30.%

15 years and above 50.%

ii. Single Premium:

Development Officer's Credit shall be 5% of the Single Premium net-of taxes.

c) Online Sale:

Insurance Intermediary shall not be involved and hence no commission shall be paid.

11. PAID-UP VALUE UNDER REGULAR AND LIMITED PREMIUM:

The policy will not acquire any paid-up value.

12. SURRENDER VALUE:

No surrender value shall be available under this Plan.

However, on surrender of policy, policy cancellation value shall be payable' in the following casesas given below:

a) Regular Premium policies: No policy cancellation value shall be payable.

b) Single Premium Policies:

The policy shall acquire policy cancellation value immediately after receipt of Single Premiumand the same is payable upon the policyholder applying for the same before the stipulated dateof maturity.

The amount of policy cancellation shall be calculated using the following formula:

70% * Single Premium Paid* (Unexpired Policy Term / Original Policy Term)- 5 -

~.

The Single Premium mentioned above is exclusive of taxes but inclusive of extra premiumscharged due to underwriting decisions, if any.

c) Limited Premium Payment:Policy cancellation value shall only be payable if premiums have been paid for at least two (2)consecutive full years and the same is payable upon the Policyholder applying for the samebefore the stipulated date of maturity or at the end of the revival period if the policy is notrevived.

The amount of policy cancellation value shall be calculated by using the following formula:

70% * Total Premium Paid* (Unexpired Policy Term / Original Policy Term)

The premium mentioned above is exclusive of taxes but inclusive of extra premiums chargeddue to underwriting decisions, if any.

13. REVIVALS (Applicable for Regular and Limited Premium payment option only):

In case of regular premium policies, if the premium is not paid within the grace period, the Policylapses. If the policy has lapsed, it may be revived during the lifetime of the Life Assured, but withina period of 5 consecutive years from the date of First Unpaid Premium or as is allowed underapplicable Product Regulations, and before the date of Maturity, as the case maybe, on payment ofall the arrears of premium together with interest (compounding half-yearly) at such rate as may befixed by the Corporation from time to time. In addition to the arrears of premium with interest, proofof Continued Insurability (this includes Form of declaration of Good Health, Medical Reports,Special Reports and any such document as may be called for by the Corporation, in accordancewith the Underwriting Policy of the Corporation) may be required for revival of the discontinuedpolicy.

Instructions regarding the applicable interest rate shall be issued by Actuarial Department, CentralOffice. However, for the current financial year 2020-21 the applicable interest rate shall be 9.5%p.a. compounding half-yearly.

The Corporation reserves the right to accept at original terms, accept with modified terms ordecline the revival of a discontinued policy. The revival of a discontinued policy shall take effectonly after the same is approved by the Corporation and is specifically communicated in writing tothe Life Assured.

Revival of lapsed policies can be considered with the following requirements:

Period from First Unpaid Requirements for revivalPremium31 days to 60 days Arrears of premiums with interest thereon and DGH.61 days and above Arrears of premiums with interest thereon alongwith underwriting

requirements as per the underwriting rules prevailing at the timeof revival.

The cost of the medical reports, including special reports, if any, required for the purposes ofrevival of the policy, shall be borne by the Life Assured.

If a lapsed policy is not revived within the revival period, the policy will automatically terminate. Incase of Regular Premium policies, nothing shall be payable. However, in case of Limited Premiumpayment policies, the amount equal to policy cancellation value shall be payable and the policy willterminate.

Waiting Period shall not be applicable in case of revival of the policy.

-6-~.

14. ALTERATIONS:

The following alterations shall be allowed:

• Any changes not involving change in base premium rates and corresponding benefitstructure.

• Reduction in Term of the policy subject to the restrictions mentioned in Para 2(f) above.

Conditions regarding alterations shall be as per the instructions issued by CRM Department,Central Office from time to time.

15. TERMINATION OF POLICY:

The policy shall immediately and automatically terminate on the earliest occurrence of any of thefollowing events:

a) The date on which lump sum death benefit is paid; orb) The date on which policy cancellation value, if applicable, is settled, in case of surrender of

policy; orc) The date of maturity; ord) On expiry of revival period, if the policy has not been revived; ore) On payment of free look cancellation amount; orf) In the event of forfeiture as specified in Para 21 below

16. LOAN:

No Loan shall be granted under this plan.

17. UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS:

. The cost of medical examination report (Video MER) and special reports, as per underwritingrequirement, shall be borne by the proposer. The detailed underwriting instructions shall be issuedby NB & R department.

18. ONLINE SALE OF POLICIES:

Instructions relating to online sale of policies, if any, shall be issued by Direct MarketingDepartment, Central Office.

19. SUICIDE CLAUSE:

Notwithstanding the provision of benefits payable on death mentioned anywhere in this circular, theprovisions related to claim payment in case of death due to suicide shall be subject to theconditions as specified herein under:

i) Under Regular/Limited Premium Policy:

This policy shall be void if the Life Assured (whether sane or insane) commits suicide at any timewithin 12 months from the date of commencement of risk, provided the policy is inforce or within 12months from the date of revival, the Corporation will not entertain any claim except for 80% of thepremiums paid (excluding any extra amount if charged under the policy due to underwritingdecisions, if any) till the date of death.

This clause shall not be applicable for a lapsed policy as nothing is payable under such policies.

ii) Under Single Premium Policy:

This policy shall be void if the Life assured (whether sane or insane at the time) commits suicide atany time within 12 months from the date of commencement of risk, the Corporation will not

-7-~.

entertain any claim except 90 % of the Single Premium paid excluding any extra amount if chargedunder the policy due to underwriting decisions, if any.

20. WAITING PERIOD

A waiting period of ·45 days from date of commencement of risk shall be applicable. In case ofrevival of a policy, waiting period shall not be applicable. The policy will cover death due to accidentonly during the waiting period. In case of death of the life assured other than due to accident duringthe waiting period, an amount equal to 100% of all premiums received excluding taxes, if any, shallbe paid.

21. FORFEITURE IN CERTAIN EVENTS:

In case it is found that any untrue or incorrect statement is contained in the proposal, personalstatement, declaration and connected documents or any material information is withheld, then andin every such case, the policy shall be void and all claims to any benefit by virtue thereof shall besubject to the provisions of Section 45 of the Insurance Act, 1938 as amended from time to time.

22. PAYMENT OF CLAIMS:

No claim concession and extended claim concession shall be applicable under this plan.

23. TAXES:

Statutory Taxes, if any, imposed on such insurance plans by the Govt. of India or any otherconstitutional tax Authority of India shall be as per the Tax laws and the rate of tax shall be asapplicable from time to time.

The amount of applicable taxes, as per the prevailing rates shall be payable by the policyholder onpremiums payable under the policy, which shall be collected separately over and above in additionto the premiums payable by the policyholder. The amount of Tax paid shall not be considered forthe calculation of benefits payable under the plan.

The instructions regarding issues related to taxes will be issued separately by Finance &AccountsDepartment, Central Office.

24. FREE LOOK PERIOD:

If a Policyholder is not satisfied with the "Terms and Conditions" of the policy, he/she may returnthe policy to the Corporation stating the reasons of objections, within 15 days (30 days if policy ispurchased online) from the date of receipt of the policy.

On receipt of the same, the Corporation shall cancel the policy and return the premiums paid to thePolicyholder subject to following deductions:

1. Stamp duty on policy;2. Proportionate risk premium for the period on cover as per C.O. Circular Ref: COI POI 39

dated 31st December, 2013;

25. BACK-DATING:

Back-dating shall not be allowed under this plan.

26. POLICY STAMPING:.

Policy stamping charges will be at the rate of 20 paise per thousand Sum Assured on Death -.

Any updates in this regard shall be issued by Legal Department, Central Office.

~.-8 -

27. REINSURANCE:

At present there is no reinsurance treaty for this plan and all the risk shall be retained by theCorporation. Any updates in this regard shall be issued by Actuarial Department, Central Office.

28. ASSIGNMENTS/NOMINATIONS:

a) Assignments: Assignment is allowed under this plan as per Section 38 of Insurance Act, 1938,as amended from time to time.The notice of assignment should be submitted for registration to the office of the Corporation,where the policy is serviced.

b) Nominations: Nomination by the holder of a policy of life assurance is required as per Section 39of the Insurance Act, 1938, as amended from time to time.The notice of nomination or change of nomination should be submitted for registration to theoffice of the Corporation, where the policy is serviced. In registering nomination the Corporationdoes not accept any responsibility or express any opinion as to its validity or legal effect.

29. NORMAL REQUIREMENTS FOR A CLAIM:

a) Death Claim: The normal documents which the claimant shall submit while lodging the claim incase of death of the Life Assured shall be claim forms, as prescribed by the Corporation,accompanied with original policy document, NEFT mandate from the claimant for direct credit ofthe claim amount to the bank account, proof of title, proof of death, medical treatment prior to thedeath (if any), school/college/employer's certificate, whichever is applicable, to the satisfaction ofthe Corporation. If the age is not admitted under the policy, the proof of age of the Life assuredshall also be submitted. . .

Within 90 days from the date of death, intimation of death along with death certificate must benotified in writing to the office of the Corporation where the policy is serviced. However delay inintimation of the genuine claim by the claimant, if any, may be condoned by the Corporation, onmerit, where delay is proved to be for reasons beyond his/her control.

b) Surrender Claim: In case of surrender of the policy, the Life Assured shall submit the dischargeform along with the original policy document, NEFT mandate from the claimant for direct credit ofthe claim amount (i.e policy cancellation value) to the bank account besides proof of age, if theage is not admitted earlier.

In addition to above, any requirement mandated under any statutory provision or as may berequired as per law or any instruction issued by CRM Department in this regard shall also berequired to be submitted.

30. ACCOUNTING OF INCOME AND OUTGO:

Instructions regarding the accounting procedure to be followed under the plan shall be issuedseparately by Finance & Accounts Department, Central Office.

31. PROPOSAL FORM:

Proposal Form No. 300 and 340 as issued by NB & R Department shall be used under this plan.

32. POLICY DOCUMENT AND SALES BROCHURE:

The specimen Policy Document and Sales Brochure will be sent by the Corporate CommunicationsDepartment, Central Office.

This circular has to be read in conjunction with the Policy Document and Sales Brochure.

~. -9-

33. ADDRESS OF OMBUDSMAN:

At the stage of issuance of policy the address and contact details of the nearest InsuranceOmbudsman is to be mentioned in the Policy Document. In case of any change in address bypolicyholder, the address and contact details of the nearest Insurance Ombudsman .from thetransferring in branch has to be informed to the policyholder along with confirmation of change inaddress.

Further, instructions in this regard to be issued by CRM Department, Central office.

CHIEF IIC (Actuarial)~. ~Encl: Annexure 1 & 2

Note: This document is the property of the Life Insurance Corporation of India and its reproduction inany form and / or transmission and/or publication on any social medium without the express permissionof Life Insurance Corporation of India will be treated as a violation of the Lie of India (Staff) Regulation,1960, as amended from time to time, and the relevant provisions of the Information Technology Act,2008.

- 10-