Group Term Life
GROUP TERM INSURANCE SCHEME
Group Term Insurance Scheme is meant to provide life insurance protection to groups of people. Administration of the scheme is on group basis; as such, the cost is very low. Minimum and maximum age limit for eligibility of cover is 18 years to 59 years. Participation of minimum 75% of eligible members of the group at inception is compulsory.
Premium Chargeable
Group (Term) Insurance Scheme is offered under One Year Renewable Group term assurance plan (OYRGTA). At the commencement and thereafter on each Annual Renewal Date, the Group Policyholder will have to send the entire member’s data (and particulars of the new entrants from time to time) to us.
General Features of Group Insurance Scheme:
§ MASTER POLICY: A single Master Policy is issued covering all the members of the scheme and the scheme is administered by the Employers, Associations, and Societies etc. called Nodal agencies.
§ PREMIUM: The premium under such scheme may be wholly paid by the employer or the scheme may be contributory i.e. the members may also contribute.
§ ELIGIBILITY: The member should not be absent on ground of sickness on the entry date. For all non-employer-employee Group Schemes the basic insurability condition is that the member should be in good health on the date of entry.
CHARACTERISTICS OF GROUP
§ Group of employees of an organization, members of a professional association, shareholders or loanee members of a co-operative bank/credit society qualify for group insurance. Minimum group size is 50 members. Employees entering in the middle of the policy year can be included for life cover under the above scheme, and member leaving will cease to be covered.
§ There should be a central administrative machinery and designated/authorized signatories to act on behalf of all members e.g. employer, or the co-operative/professional body etc.
§ NO MEDICALS required below Free Cover Limit.
Death Claim
Claim is payable only in the case of the unfortunate death of a member while the policy is in force. When a claim arises, the particulars of the respective member are to be intimated by the designated/authorized signatories together with the Claim Form and original Death Certificate.