Group term insurance (GTI), Whatever the business – it’s the people who make it a success. Everybody requires some type of life insurance, especially when others depend on them financially. The HDFC Life Group Term Insurance (GTI) plan meets this need and serves as an ideal way for companies to reinforce their bond with their employees. The sort of needs you, as an employer need to cater to could be in form of:
• Employee benefits
• Cover for housing or vehicle loans given by you to your employee
• A GTI cover for future service gratuity liability
The HDFC Life Group Term Insurance plan will have the following structure:
• Term insurance plan with one year renewable premium
• Sum assured is payable on death (either due to natural causes or accidents)
The plan covers death due to any cause; accidental or natural, and hence is more comprehensive than Group Personal Accident insurance.
Our product has been designed to offer innovative features and a high degree of customization. They are:
• Convenient medical procedures, where the members do not need to undergo any medical examination up to the “Free Cover Limit”. This limit is dependant upon the sum assured and the size of the group.
• A grace period of 15 days for monthly Premium paying frequency and 30 days for other Premium paying frequencies is allowed for the payment of each renewal Premium after the first Premium. We will not accept part payment of the Premium. The policy is considered to be in-force with the risk cover during the grace period without any interruption.
We also offer some additional optional benefits as given below.
• Accidental Death Benefit (UIN: 101B008V04)
• Total Permanent Disability (UIN: 101B006V04)
• Total Permanent and Partial Disability Benefit (UIN: 101B005V04)
• HDFC Life Group Critical Illness Plus Rider (UIN : 101B015V03)
These would come at a nominal additional cost and would be subject to certain restrictions and exclusions, depending on the benefit you opt for. Please refer to the Rider terms and conditions for further details. You can also contact your Relationship Manager for further details.
Tax Benefits may be available as per prevailing tax laws. You are requested to contact us for further details.
A) Suicide Exclusions
(1) Exclusions On Basic Death Benefit – In case of employere employee schemes, Sum Assured will be payable to the nominee in case of death due to suicide. In case of other schemes, if the member dies due to suicide within 12 months from the date of joining the scheme, the nominee shall be entitled to get at least 80% of the total premiums paid till the date of death or the surrender value available as on the date of death whichever is higher.
B) Taxes –
(1) Indirect Taxes – Taxes and levies as applicable shall be levied as applicable. Any taxes, statutory levy becoming applicable in future may become payable by you by any method including by levy of an additional monetary amount in addition to premium and or charges.
(2) Direct Taxes – Tax will be deducted at the applicablerate from the payments made under the policy, as per the provisions of the Income Tax Act, 1961 as amended from time to time.
C) Nomination: Sec 39 of insurance Act 1938 as amended from time to time:
(1) The policyholder of a life insurance on his own life may nominate a person or persons to whom money secured by the policy shall be paid in the event of his death.
(2) Where the nominee is a minor, the policyholder may appoint any person to receive the money secured by the policy in the event of policyholder’s death during the minority of the nominee. The manner of appointment to be laid down by the insurer.
(3) Nomination can be made at any time before the maturity of the policy.
(4) Nomination may be incorporated in the text of the policy itself or may be endorsed on the policy communicated to the insurer and can be registered by the insurer in the records relating to the policy.
(5) Nomination can be cancelled or changed at any time before policy matures, by an endorsement or a further endorsement or a will as the case may be.
(6) A notice in writing of Change or Cancellation of nomination must be delivered to the insurer for the insurer to be liable to such nominee. Otherwise, insurer will not be liable if a bonafide payment is made to the person named in the text of the policy or in the registered records of the insurer.
(7) Fee to be paid to the insurer for registering change or cancellation of a nomination can be specified by the Authority through Regulations.
(8) A transfer or assignment made in accordance with Section 38 shall automatically cancel the nomination except in case of assignment to the insurer or other transferee or assignee for purpose of loan or against security or its reassignment after repayment. In such case, the nomination will not get cancelled to the extent of insurer’s or transferee’s or assignee’s interest in the policy. The nomination will get revived on repayment of the loan.
(9) The provisions of Section 39 are not applicable to any life insurance policy to which Section 6 of Married Women’s Property Act, 1874 applies or has at any time applied except where before or after Insurance Laws (Amendment), Bill 2015, a nomination is made in favour of spouse or children or spouse and children whether or not on the face of the policy it is mentioned that it is made under Section 39. Where nomination is intended to be made to spouse or children or spouse and children under Section 6 of MWP Act, it should be specifically mentioned on the policy. In such a case only, the provisions of Section 39 will not apply.
D) Assignment or Transfer: Section 38 of the insurance act 1938, as amended from time to time:
(1) This policy may be transferred/assigned, wholly or in part, with or without consideration.
(2) An Assignment may be effected in a policy by an endorsement upon the policy itself or by a separate instrument under notice to the Insurer.
(3) The instrument of assignment should indicate the fact of transfer or assignment and the reasons for the assignment or transfer, antecedents of the assignee and terms on which assignment is made.
(4) The assignment must be signed by the transferor or assignor or duly authorized agent and attested by at least one witness.
(5) The transfer or assignment shall not be operative as against an Insurer until a notice in writing of the transfer or assignment and either the said endorsement or instrument itself or copy there of certified to be correct by both transferor and transferee or their duly authorized agents have been delivered to the Insurer.
(6) Fee to be paid for assignment or transfer can be specified by the Authority through Regulations.
(7) On receipt of notice with fee, the Insurer should Grant a written acknowledgement of receipt of notice. Such notice shall be conclusive evidence against the insurer of duly receiving the notice.
(8) The Insurer may accept or decline to act upon any transfer or assignment or endorsement, if it has sufficient reasons to believe that it is (a) not bonafide or (b) not in the interest of the policyholder or (c) not in public interest or (d) is for the purpose of trading of the insurance policy.
(9) In case of refusal to act upon the endorsement by the Insurer, any person aggrieved by the refusal may prefer a claim to IRDAI within 30 days of receipt of the refusal letter from the Insurer.
Section C (Nomination) and D (Assignment or Transfer) are simplified versions prepared for general information only and hence are not comprehensive. For full texts of these sections please refer to Section 39 and Section 38 respectively of the Insurance Act, 1938 as amended by the Insurance Laws (Amendment) Act, 2015.