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Groups > Kotak Credit-Term 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. The Kotak Credit-Term Grouplan,
is the right solution to your needs, protecting
both your institution’s and your customer’s
interest. Not only is it cost effective and easy
to administer, but it also gives you a differentiating
edge over your competitors. |
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|
 What
does the Kotak Credit-Term Grouplan offer? |
| This 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. It is a non-participating
yearly renewable plan .The plan can be compulsory
(for all borrowers) 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
- Significant
opportunity to earn fee-income
- Does
not require a Corporate Agency or Referral
tie-ups
- Extremely cost-effective
because of group pricing dynamics and premium
recovered from the customer
- 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).However non-medical limit will
vary by loan type, Borrowers age and tenure
of the loan.
- The life cover is available
24 hours a day, 7 days a week, anywhere in
the world
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| What
are the eligibility requirements? |
- The minimum age at entry is 18
years
- The maximum age at entry
is 64 years
- The maximum ceasing age
of the plan is 65 years
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| What
are the benefits available with this plan? |
| On death during the
term of the plan, the outstanding loan amount is
paid to the bank and the remaining amount (if any)
is paid to the nominee, under both options. No
overdue on the loan will be covered. |
| However, No Maturity
benefit is payable under the plan. |
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| What
is the frequency of premium payment? |
| Premiums are paid
annually in advance. However, we also offer the
opportunity to the credit institution to make the
payment monthly in advance. |
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| What
is the maximum cover that a member can avail of? |
| Cover may not exceed
the original value of the loan. However, the maximum
cover allowed per member will vary from group to
group, up to a maximum of Rs. 50,00,000. |
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| How
large can a group be? |
| Atleast 25% of the borrowers
in the group should opt for the life cover subject
to a minimum of 1250 members. Kotak Life Insurance
provides the option of compulsory or voluntary
membership for the borrowers of credit institution.
There is no restriction on the maximum number. |
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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
loan contract
- The date on which
the contract terminates as per the provisions
of loan contract
- The date on which
the premium for the member ceases
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| Are
there any other benefits that can be included? |
| With the Kotak Credit-Term
Grouplan, the Accidental Disability Benefit Rider
can be added for a nominal additional premium. |
| With this, if, during
the term of this benefit, a member is totally and
permanently disabled as a result of an accident;
a lump sum would be paid to the credit institution.
The maximum benefit that can be availed of is Rs.
10,00,000 subject to certain conditions. Maximum
entry Age for the rider is 50 years except where
coverage is compulsory for an existing group of
borrowers |
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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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| 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. You are advised to consult
your tax advisors for details. |
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| Exclusions
for Kotak Credit-Term Grouplan: |
| Claims resulting from
suicide within a year of cover will be disallowed. |
| 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. |
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| 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 Credit
Term Grouplan UIN 107N006V02 Accidental Disability
Benefit UIN 107C008V01 Ref No: KLI/08-09/E-PB/133 |
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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
product brochure gives only the salient features
of the plan. This document 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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