Bandhan Life Group Care
Micro Insurance Plan
UIN: 138N088V01
A Non-Linked Non-Participating Group Pure Risk Premium
Micro Life Insurance Plan
Bandhan Life Group Care Micro Insurance Plan | UIN 138N088V01 - Sales Literature updated August, 2024 Page 1 of 10
Bandhan Life Group Care Micro Insurance Plan is a protection-oriented plan that aims to provide
life cover to the members/ borrowers of your group at affordable rates. Since misfortune comes
unannounced, the plan provides security to them and their families by safeguarding their financial
commitments in case of any unfortunate event. The plan can also be offered to Members/Employees of
Micro Finance Institutions, Co-operatives, and any other Non-Employer Employee groups and provides
flexibility in choosing cover options as per the needs and requirements of the group.
Key Features
• Comprehensive financial protection - covers Death and also provides option to cover Accelerated
Terminal Illness and Accidental Death depending on member’s needs.
• Flexibility to choose Sum Assured – level or decreasing
• Can be availed for credit protection schemes
• Flexibility to choose premium payment term & frequency as per convenience.
• Flexibility to cover Single or Joint Life
• The purchase process is quick and seamless.
Key Benefits in Detail
• Benefit Options
Master Policyholder/ Insured Member can choose any one option from a choice of Four (4)
different coverage options listed below:
Option No. Coverage
1 Life Cover
2 Life Cover plus Accelerated Terminal Illness
3 Life Cover plus Accidental Death
4 Life Cover plus Accelerated Terminal Illness plus Accidental Death
Please note, the option can be chosen only once at the inception of the policy.
• Benefit payable under this plan:
On occurrence of the insured event, the benefits will be paid in a lump sum, as described below:
Insured Event Benefit Payable
On death, the Sum Assured (as on the date of death) will be payable, and
the Policy will terminate for the Insured Member on payment of this
benefit.
Death
In case Decreasing Sum Assured has been opted for, the benefit payable
will be as per the Sum Assured schedule as on date of death or INR 5000,
whichever is higher.
On diagnosis of terminal illness, the Sum Assured (as on the date of
diagnosis) will be payable, and the Policy will terminate for the Insured
Member on payment of this benefit.
Diagnosis of
Terminal Illness** In case Decreasing Sum Assured has been opted for, the benefit payable
will be as per the Sum Assured schedule as on date of diagnosis or INR
5000, whichever is higher.
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On the occurrence of this event, in addition to the Death benefit detailed
above, an additional amount equal to the sum assured will be payable, and
the policy will terminate for the Insured Member on payment of this
benefit.
Accidental Death##
In case Decreasing Sum Assured has been opted for, the benefit payable
will be as per the Sum Assured schedule as on date of death or INR 5000,
whichever is higher.
**Terminal Illness: A life insured shall be regarded as terminally ill only if they are diagnosed as suffering
from a condition which, in the opinion of two independent medical practitioners’ specializing in treatment of
such illness, is highly likely to lead to death within 6 months. The insured must not be receiving any form of
treatment other than palliative medication for symptomatic relief.
The terminal illness must be diagnosed and confirmed by medical practitioners registered with the Indian
Medical Council and the illness to be approved by the Company. The certification should be from super
specialist only (Allopathic / Ayush) and not by the general practitioner. Also, certification from Homeopathic
and Ayurvedic practitioner shall not be accepted as alone certification. At least one out of two certifications
is must from Allopathic medical practitioner.
##
Accident is a sudden, unforeseen, and involuntary event caused by external, visible and violent means which
occurs after the risk commencement date of the Policy/Cover and before the termination of the Policy/Cover.
Accidental Death Benefit will be payable, where death happens directly and solely from an accident and
independently of any other causes, and which occurs within 180 days of the accident.
• Surrender Benefit
Policies can be surrendered any time after payment of single premium in case of single pay, and
after payment of first two year’s premium in full in case of limited pay. On surrender, an unexpired
risk premium value shall be payable.
An insured member also has an option to choose to surrender or terminate the cover due to
foreclosure or prepayment of loan or for any other reason.
Unexpired Risk Premium Value as lump-sum payout is payable only in case of Single Premium
and Limited Premium Policy, and is as follows:
Unexpired Risk Premium Value (URPV) = 70% X Premiums Paid till date of surrender* X
{outstanding coverage term (in months) / Total coverage term (in months)} X
{Sum assured applicable as at date of surrender# / Sum assured at inception}
#
Sum assured applicable as at surrender: If moratorium has been opted, then sum assured benefit at the
time of surrender will be equal to minimum of sum assured at inception or the sum assured as on date
of surrender.
* Premiums paid till date of surrender will be excluding taxes, underwriting extra premiums and modal
premiums if any.
Surrender benefit is not payable for Regular Premium Policy, One Year Renewable Term schemes and
in case of Limited pay policy, if first two years’ premiums are not paid in full.
In the event of termination of the Policy by the Master Policyholder, the Insured Member/s will have
an option to continue their respective coverage till the end of coverage term as an individual
policyholder. In case Coverage Continuation option is not opted by an Insured Member/s, the Unexpired
Risk Premium Value, if any, will be paid as surrender benefit.
• Maturity Benefit
No Maturity Benefit is payable under this policy.
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Benefits Payment
• Upon death of an Insured Member the Company will pay the benefit amount to the Claimant. If
an Insured Member’s death occurs during the Grace Period, the death benefit will be payable,
after recovering the outstanding premium from the claim amount. Outstanding Premiums in this
context means “the due but unpaid premiums”.
• In case of Regulated Entities, subject to the Master Policyholder providing the insurer an
authorization from the member, authorizing us to make payment to the extent of outstanding loan
amount in favour of the Master Policyholder, the claim amount to the extent of outstanding loan
amount shall be paid to the Master Policyholder after deduction of the same from the claim proceeds
payable on the happening of the contingent event covered under this policy. Any residual benefit
shall be paid to the beneficiary. In the absence of such authorization, the claim payment will be
made to the beneficiary. If the outstanding amount in the Credit Account Statement is higher than
the benefit payable as per the Sum Assured Schedule, we will pay the benefit as per the Sum
Assured Schedule. Benefits will be payable only if the Policy is in-force on date of occurrence of
Insured Event and in accordance with the terms and conditions hereof, subject to receipt of the
appropriate Premiums and documents specified by the Company from time to time.
• We will send complete details of the claim amount settled to the Insured Member/ Nominee/
Beneficiary as the case may be.
Claim payment in case of Other Entities:
Upon the occurrence of insured event during the Policy term, the claim amount will be payable to the
Member or nominee/beneficiary.
Other Flexibilities:
• Joint Life option
Under this option, up to two (2) members of the same loan can be covered under this policy, with
each of them covered for 100% of the applicable sum assured. The Insurable interest between the
joint lives will be considered before providing the cover. The benefit is payable only on first
occurrence of insured event on either of the lives and the cover will terminate thereafter. In case of
occurrence of the insured event on both lives simultaneously or at the same time, the benefit shall
be payable only for one life. Joint life covers are also eligible for premium discount. In case of
repudiation of claim (due to any reason), the policy coverage will terminate.
Note: In case of multiple borrowers, where each borrower is liable for their individual share of the
loan, each borrower will be treated as an individual member and is covered for respective proportion
of the loan amount. On occurrence of insured event with any of the borrowers, the benefit (in
proportion to his/her loan amount) will be payable for that borrower and their cover shall terminate.
The coverage shall continue for the remaining borrowers.
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• Sum Assured Option
o Level Sum Assured: Under this option, the benefit payable will be equal to Level Sum Assured
as chosen by the member at the inception of the cover.
o Decreasing Sum Assured: Under this option, the benefit paid is the coverage amount as on date
of death as mentioned in the Sum Assured schedule. At no time shall the Sum Assured payable
under this option be less than INR 5,000.
• Moratorium Period
Moratorium Period is allowed only for Loans which are on decreasing Sum Assured basis.
Moratorium period can be any period starting from 1 month to 5 years (in multiple of 1 month),
applicable only for policy term more than 3 (three) years where moratorium can’t be more than
1/3rd of the policy term. The policy term will be the outstanding loan term (which includes the
moratorium period), in complete months. After Moratorium Period the death benefit will follow the
Sum Assured Schedule It is available with two options-
1. Sum Assured during the moratorium period is level.
2. Sum Assured during the moratorium period is increasing due to interest accumulation.
• Tax benefit
You may be eligible for tax benefits as per prevailing tax laws.
Eligibility Conditions
Age at Entry (in Years)* 18 Years - 69 Years
Maximum Age at
70 years
Maturity*
Group Size 5 Members & above
This plan is available for One Year Renewable Term (OYRT) for a policy term
of 1 year.
For non OYRT schemes:
Payment mode Minimum Maximum
Policy Term Single Pay 1 month
Regular Pay
24 months
(For Level Cover option only) 120 Months
Limited Pay - 2/3rd of Benefit Term
(round down to nearest integer) 72 months
Premium Payment
Annual, Half-yearly, Quarterly, Monthly
Frequency$
Premium Up to Rs. 6,000 p.a. (per member)
Minimum
Sum Assured (per Rs. 5000
member) Maximum
Rs. 2 Lacs.
*All ages are as on last birthday.
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$ For premium payment frequency other than Annual, following modal factors are applicable:
Mode Modal Factor
Half-Yearly 0.512
Quarterly 0.259
Monthly 0.087
Who Can Opt For This Plan?
Regulated Entities / Financial Institutions:
1. Reserve Bank of India (RBI) Regulated Scheduled Commercial Banks (including Cooperative
Banks)
2. NBFCs having Certificate of Registration from RBI.
3. National Housing Bank (NHB) Regulated Housing Finance Companies.
4. National Minority Development Finance Corporation (NMFDC) and its State Channelizing
Agencies.
5. Small Finance Banks regulated by RBI.
6. Mutually Aided Cooperative Societies formed and registered under the applicable State Act
concerning such Societies.
7. Microfinance companies registered under section 8 of the Companies Act, 2013.
8. Any other category as approved by the Authority from time to time
Other Entities (other than Regulated entities):
Any other entity not covered in the list of Regulated entities / Financial Institutions.
In addition to the above, the product may also be available for Non-Lender Borrower groups as well.
Terms and Conditions
Freelook Cancellation
If Master Policyholder/member is not satisfied with any of the terms and conditions of the policy or
otherwise and has not made any claim, Master Policyholder / Insured Member may request the company
for the cancellation of the Policy or Certificate of Insurance within 30 days from date of receipt of
Policy or Certificate of Insurance, whether received electronically or otherwise. This is not applicable
for policies with tenure less than a year.
On cancellation of the Master Policy/ COI within the free-look period, the Company shall refund
premiums paid, subject to deduction of the proportionate risk premium for the period of cover, stamp
duty paid and medical costs incurred (if any). The Master Policy / Certificate of Insurance will terminate
on payment of this amount and all rights, benefits and interests under this Policy/COI will stand
extinguished.
Premium Payment
The premium payable could vary based on the benefit option chosen.
Addition / Deletion of Members
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Addition of new members joining and deletion of members leaving the scheme is permitted under the
product for yearly renewable policies. For members joining in between a policy year, either pro rata
premium for the remaining policy year or full premium for one full year of cover from the member’s
risk commencement date as per scheme rules may be charged. For members leaving in between a policy
year, pro-rata premium for the remaining policy year shall be refunded.
Grace Period
If for any insured member, premium is not paid by the Master Policyholder or the insured member
itself, a grace period of 30 days (15 days for monthly mode) will be applicable for that member within
which the Master Policyholder or member will have to pay the premium.
If the insured event occurs during the grace period then the due unpaid premiums (if any) till date of
the occurrence of insured event shall be deducted from the claim amount payable.
If the due premium is not received before the expiry of the grace period from the premium due date,
then the insurance cover to respective members will cease and no benefits shall be payable.
In case the premium is collected by the Master Policyholder and for some reason it does not reach us
within the Grace Period, then after the Grace Period the risk cover is available to the insured members,
if they can prove that they had paid the premium and secured a proper receipt leading the insurer to
believe that they are duly insured.
Any claim shall not be rejected solely on the grounds that the insured member has paid the premium,
but the Master Policyholder has not remitted the premium to the company (Bandhan Life Insurance
Limited).
Where, Grace Period means the time provided by the Company from the first unpaid premium due date,
without any penalty or late fee, during which time the policy is considered to be in force with the risk
cover without any interruption, as per the terms & conditions of the policy.
Lapse and Revival
If the policy has not acquired surrender value and the due premium is not received before the expiry of
the grace period from the Premium due date, the insurance cover for the respective Insured Member/s
will cease and no benefit is payable.
Subject to Master Policy/Cover being in force, revival period of 5 consecutive years but not later than
the expiry of the cover term end date is available from the due date of the first unpaid Premium for the
respective member. The revival will be subject to the ‘Board approved underwriting policy of the
Company’ and payment of all outstanding premiums (including taxes and levies) with applicable
interest thereon. The current interest rate for FY 2024-25 is 9.00% p.a. compounded annually. The
interest rate shall not exceed the yield to maturity on 10-year G-Sec + 200 basis points rounded to the
nearest 50 basis points. G-Sec rates will be taken from www.fbil.org.in The interest rate will be reset
at the beginning of each Financial Year. Any change in this basis will be subject to approval from
appropriate authority if applicable.
The cover cannot be revived after expiry of the revival period. On expiry of the revival period, for a
limited pay policy, benefit acquired on surrender shall be paid and the insurance cover for the respective
member will cease.
Suicide Exclusion
In case of death due to suicide within 12 months from the date of commencement of risk under the
policy or from the date of revival of the policy, as applicable, the nominee or beneficiary of the
policyholder shall be entitled to 80% of the total premiums paid** (excluding taxes and underwriting
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extra premium) till the date of death or the benefit acquired on surrender / termination as on the date of
death whichever is higher, provided the policy is in force.
In case of joint life, the benefit as mentioned above will be paid and the insurance cover will terminate
for the surviving life.
**"Total Premiums Paid" means total of all the premiums paid under the base product, excluding any
extra premium, and taxes, if collected explicitly.
Exclusions for Terminal Illness
The Life Insured will not be entitled to any Accelerated Terminal Illness benefit if it is caused directly
or indirectly due to or occasioned, accelerated or aggravated by intentional self-inflicted injury or
attempted suicide in the first year from inception or revival of policy.
Exclusions for Accidental Death:
The life assured will not be entitled to the accidental death benefit directly or indirectly due to or caused,
occasioned, accelerated, or aggravated by any of the following:
1. The life assured taking part in any hazardous sport or pastimes (including hunting, mountaineering,
racing, steeple chasing, bungee jumping, etc.), any underwater or subterranean operation or activity
and racing of any kind other than on foot.
2. The Life Assured flying in any kind of aircraft, other than as a bonafide passenger (whether fare-
paying or not) on an aircraft of a licensed airline.
3. Self-inflicted injury, suicide or attempted suicide.
4. Under the influence or abuse of drugs, alcohol, narcotics or psychotropic substance not prescribed
by a registered medical practitioner.
5. Service in any military, air force, naval or paramilitary organization.
6. War, civil commotion, invasion, terrorism, hostilities (whether war be declared or not).
7. The life assured taking part in any strike, industrial dispute and riot.
8. The life assured taking part in any criminal or illegal activity with criminal intent or committing
any breach of law including involvement in any fight or affray.
9. Exposure to Nuclear reaction, Biological, radiation or nuclear or chemical contamination.
10. Physical handicap.
Goods and Services Tax
Goods and Services tax or any other tax shall be levied as per prevailing tax laws.
Tax Benefits
Tax benefit may be available as per prevailing tax laws.
It is recommended that you obtain professional advice for applicability of Income Tax benefit on
premiums paid and benefits received. Income Tax to be deducted, if any, will be deducted at the
applicable rate from the payments made under the policy.
Assignment: This Policy cannot be assigned.
Nomination: As per section 39 of the Insurance Act 1938 as amended from time to time.
PROHIBITION OF REBATES
Section 41 of the Insurance Act, 1938 (as amended from time to time) 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,
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except such rebate as may be allowed in accordance with the published prospectuses or tables of the
insurer.
Any person making default in complying with the provisions of this section shall be liable to a penalty
which may extend to ten lakh rupees.
NON-DISCLOSURE
Section 45 of the Insurance Act, 1938 (as amended from time to time) states:
1) No Policy of Life Insurance shall be called in question on any ground whatsoever after expiry of 3
years from the date of Policy i.e. from the date of issuance of Policy or the date of commencement of
risk or the date of revival of Policy or the date of rider to the Policy, whichever is later.
2) On the ground of fraud, a Policy of Life Insurance may be called in question at any time within 3
years from the date of issuance of Policy or the date of commencement of risk or the date of Revival of
Policy or the date of rider to the Policy, whichever is later. For this, the insurer shall have to
communicate in writing to the insured or legal representative or nominee or assignees of insured, as
applicable, mentioning the ground and materials on which such decision is based.
For full texts of Section 38, Section 39, Section 41 and Section 45, please refer to the Insurance Act,
1938 (as amended from time to time).
ABOUT US
Bandhan Life Insurance Limited
Established in 2008 Bandhan Life (erstwhile Aegon Life), is your reliable partner in navigating the
world of financial security. We are at the forefront of an insurance evolution, striving to bring peace of
mind and prosperity to every corner of India. By leveraging state-of-the-art technology, we're breaking
new ground in the insurance industry, making our services accessible, user-friendly, and tailor-made
for the digital age. With Bandhan Life, you're not just insured; you're inspired to live life to its fullest,
backed by a commitment to financial security and trust. Welcome to a new era of insurance.
Disclaimer
• The brochure is not a contract of insurance. The precise terms and conditions of this plan are
specified in the policy contract/Certificate of Insurance.
• This plan is not a guaranteed issuance plan and it will be subject to Company’s underwriting and
acceptance.
• Insurance cover is available under this product.
• Tax benefits under the policy are subject to conditions under section 80C and 10(10D) of the
Income Tax Act, 1961. Goods & Services Tax and Cess (if any) will be charged extra as per
prevailing rates. Tax benefits are subject to changes in the tax laws
• In the event of conflict, if any, between the terms and conditions contained in the brochure and
those contained in the Policy Document/Certificate of Insurance the terms and conditions
contained in the Policy Document/Certificate of Insurance shall prevail.
This product is underwritten by Bandhan Life Insurance Limited.
Beware of Spurious Phone Calls and Fictitious/Fraudulent Offers
IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment
of premiums. Public receiving such phone calls are requested to lodge a police complaint.
HOW TO CONTACT US?
If you want to talk to us, just call our customer service team on (Toll Free) 1800 209 9090 or visit our web page
www.bandhanlife.com
Bandhan Life Group Care Micro Insurance Plan | UIN 138N088V01 - Sales Literature updated August, 2024 Page 9 of 10
Bandhan Life Group Care Micro Insurance Plan UIN 138N088V01. A Non-Linked Non-Participating
Group Pure Risk Premium Micro Life Insurance Plan. This Product brochure is indicative of the terms,
warranties, conditions and exclusions contained in the insurance policy. Bandhan Life Insurance
Limited (Formally known as Aegon Life Insurance Company Limited), IRDAI Reg. No. 138. Corporate
Identity No: U66010MH2007PLC169110. Registered Office: A - 201, 2nd Floor, Leela Business Park,
Andheri-Kurla Road, Andheri East, Mumbai - 400059. Tel: +91 226118 0100, Toll Free No.:1800
209 90 90 (9am to 7 pm, Mon to Sat), Email: [email protected]. Website:
www.bandhanlife.com ADVT No. IC/Aug 2024/7150
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