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Groups > Kotak Complete Cover Grouplan |
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| Overview |
| In today’s competitive
market scenario, it’s getting tougher to
attract and retain customers, let alone aiming
for market leadership. Kotak Complete Cover Grouplan
can provide your institution the required value-add
to differentiate your products and make them more
competitive. This plan can be customized to match
your product characteristics as much as the needs
of your customer and your institution. |
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|
 What
is the Kotak Complete Cover Grouplan? |
| The Plan provides life
cover to a group of borrowers of the credit institution
(banks, retail finance providers etc.) with the
Life Assured being the borrower and the Credit
Institution being the beneficiary to the extent
of the outstanding loan amount. It is a non-participating
single-premium plan and can be customized to cover
all types of loans and repayment terms. |
| The plan can be mandatory
(all members join) or voluntary (subject to certain
conditions). In the unfortunate event of death
of the borrower during the term of the policy,
the outstanding loan amount would be repaid by
Kotak Life Insurance, relieving the borrower’s
family of the loan liability and eliminating risk
of loss due to death of the borrower to the Credit
Institution. |
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| What
are the advantages to me as a credit institution? |
- Eliminates the risk of default in
the event of death of the borrower
- Facilitates
competitive pricing for credit products and
ensures a differentiating edge over your competitors
- Extremely
cost-effective because of group pricing dynamics
- Hassle-free
administrative procedures
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| What
are the advantages to my borrowers? |
- The borrower’s family is relieved
of the financial burden of paying the outstanding
loan amount
- The pooling of risk (group
cover) allows the cover to be provided at a
low cost
- Hassle-free and convenient
documentation process
- Relaxed medical
examination norms (subject to applicable conditions)
- The
life cover is available 24 hours a day, 7 days
a week, anywhere in the world
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| What
happens in the event of death of a borrower? |
| In the event of death
of a borrower, the outstanding loan amount would
be paid by Kotak Life Insurance as a death benefit
to the credit institution. |
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| What
is maximum amount of cover allowed under the plan? |
| The maximum cover allowed
per member will vary from group to group up to
a maximum of the original value of the loan. |
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| In
what ways can the cover be expressed? |
| The cover can be structured
to meet the Credit Institution & borrower’s
needs. Generally it is expressed in terms of Original
Loan Amount or Outstanding Loan Amount on the date
of death etc. The choice of cover will depend on
the requirements of the credit institution, the
cost constraints and the type of scheme. |
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| How
is the premium paid? |
| KCCG is a single premium
policy. The premium is payable once at the commencement
of the policy by the credit institution. |
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| What
riders are available along with KCCG? |
| For borrowers under
40 years of age, the Critical Illness Benefit can
be added to the basic KCCG policy. Kotak life insurance’s
Critical Illness Benefit provides for payment of
a lump sum to the borrower in the event of diagnosis
of any of 12 critical illnesses. Payment of the
Critical Illness Benefit causes the basic life
cover and the rider cover to cease. |
| Additional information
is available on the Critical Illness Benefit upon
request. |
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| What
is the term of the Kotak Complete Cover Grouplan? |
| The insurance cover
can be for any term up to a maximum of 30 years. |
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| What
happens if a borrower prepays his loan? |
| In the event of prepayment
of the loan, a portion of the single-premium paid
will be refunded. Further details of the premium
refund formula are available upon request. |
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| How
large can a group be? |
| At least 25% of the
borrowers in the group should opt for the life
cover subject to a minimum of 250 members. Kotak
Life Insurance provides the option of compulsory
participation for the borrowers of credit institution
as well. There is no restriction on the maximum
number. |
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| Are
there any tax benefits? |
- • The premium paid by the credit institution
could be considered as part of business expenses
and may be tax deductible
- • Any premium
paid by a borrower in his/her capacity as an
individual will be eligible for tax deduction
under section 80(C) of the Income Tax Act,
1961
- • Benefits received by the borrower’s
nominee are tax free under section 10(10 D)
of the Income Tax Act, 1961
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| Tax benefits are subject
to change in tax laws Please consult your tax advisor
for details. |
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| When
will the cover terminate? |
| The cover for a member
will cease on the earliest of: |
- The date on which the loan is repaid
- The date the borrower attains the ceasing age
as in the policy contract
- The date of scheduled expiry of the loan as
per the contract
- The date on which the contract terminates as
per the provisions of contract
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| What
services can we expect? |
- A dedicated Customer Relationship
Manager for effective initiation and regular
servicing
- Comprehensive operational
and post-launch support from centralized Group
Operations Team
- Centralized Customer
Support for query handling on an ongoing basis
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| Exclusions |
- No claim arising from the death of
a member due to any cause other than an Accident
shall be payable where such death occurs within
90 days from the date of his/her commencement
of cover
- Any claim arising as a result of
a member committing suicide within one year of
commencement of his/her cover will be disallowed.
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| Free
Look Period |
The Policyholder is offered
a 15 days free look period, from the date of receipt
of this policy. During this period the Policyholder
may choose to reconsider his/her decision to hold
this policy, or may choose to return the same within
the said 15 days. Should the Policyholder choose
to return the Policy, he/she shall then be entitled
to a refund of the premium paid after adjustments
for expenses for medical examination, stamp duty
and proportionate risk premium for the period of
cover.
Service Tax and education cess shall be levied on
all applicable charges as per the prevailing tax
laws and/or any other laws. In case of any statutory
levies, cess, duties etc., as may be levied by the
Government of India from time to time, the Company
reserves its right to recover such statutory charges
from the policyholder(s) either by increasing the
premium and / or by reducing the benefits payable
under the plan. |
| Section
41 of the Insurance Act, 1938 states |
1) No person shall allow
or offer to allow, either directly or indirectly,
as an inducement to any person to take 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, except such rebate as
may be allowed in accordance with the published prospectuses
or tables of the insurer:
Provided that acceptance by an insurance agent of
commission in connection with a policy of life insurance
taken out by himself on his own life shall not be
deemed to be acceptance of a rebate of premium within
the meaning of this sub section if at the time of
such acceptance the insurance agent satisfies the
prescribed conditions establishing that he is a bona
fide insurance agent employed by the insurer.
(2) Any person making default in complying with the
provisions of this section shall be punishable with
fine which may extend to five hundred rupees |
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| Section
45 of the Insurance Act, 1938 states |
No policy of life insurance
effected before the commencement of this Act shall
after the expiry of two years from the date of commencement
of this Act and no policy of life insurance effected
after the coming into force of this Act shall, after
the expiry of two years from the date on which it
was effected be called in question by an insurer
on the ground that statement made in the proposal
or in any report of a medical officer, or referee,
or friend of the insured, or in any other document
leading to the issue of the policy, was inaccurate
or false, unless the insurer shows that such statement
was on a material matter or suppressed facts which
it was material to disclose and that it was fraudulently
made by the policy holder and that the policy holder
knew at the time of making it that the statement
was false or that it suppressed facts which it was
material to disclose:
Provided that nothing in this section shall prevent
the insurer from calling for proof of age at any
time if he is entitled to do so, and no policy shall
be deemed to be called in question merely because
the terms of the policy are adjusted on subsequent
proof that the age of the life insured was incorrectly
stated in the proposal. |
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| Kotak Complete
Cover Grouplan UIN 107N018V02 Critical Illness Benefit
(Rider) UIN 107C009V01 Ref No: KLI/08-09/E-PB/152 |
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Regn. No.: 107,
Regd. Office:
Kotak Mahindra Old Mutual Life Insurance Ltd.
4th Floor, Vinay Bhavya Complex,
159 A, C.S.T. Road, Kalina,
Santacruz (East),
Mumbai - 400 098
Website: http://insurance.kotak.com
Email: lifeexpert@kotak.com.
SMS KLIFE to 5676788 Toll Free No. – 1800 209 8800 |
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| Insurance is
the subject matter of the solicitation. This is a
non-participating term plan. This product brochure
gives only the salient features of the plan. This
is not a contract of insurance and must be read in
conjunction with the policy document. Hard copy of
the information will be provided on request. |
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