Disability benefit

Disability benefit is also an item appearing under “Conditions and privileges’. This item may not be available in many insurers’ policies. I reproduce the privilege as appearing in a policy issued by the Life Insurance Corporation of India: If, while this policy is in force for the full sum assured, the life assured, prior to the policy anniversary on which the age nearer birthday of the life assured is 70, becomes subject to a disability as hereinafter defined, and proves the same to the satisfaction of the Corporation as hereinafter provided, the Corporation agrees to waive the payment of future premiums up to an assurance of Rupees 20, 000 on the following conditions:

(a) The maximum aggregate limit of assurance under all policies issued by the Corporation up on the same life to which the benefit of the waiver will apply shall not in any event exceed Rupees 20, 000. If there are more policies than one   and if the total assurance exceeds Rupees 20, 000 the waiver shall apply to the first Rupees 20, 000 assured in order of date of policies issued. The premiums payable, after satisfactory proof of such disability is furnished to the Corporation shall be only for the assurance, if any, exceeding the maximum aggregate limit of Rupees 20, 000.

(b) The waiver of premiums shall extinguish all options under the policy, except as to such assurance, if any, exceeds the maximum aggregate  limit of Rupees 20, 000 and which may have been kept in force by continued payment of premiums.

In the event of it being discovered at any time that a claim under this clause has been wrongly admitted all premiums falling due after the Corporation’s waiver decision shall be paid in one lump sum with interest at such rate as may be prevailing at the time of payment. Otherwise the policy shall remain a one with reduced sum or as a discontinued policy.

Key words:

Conditions and privileges of policy

Disability benefit

Waiver of premium