The insurer allows a mode of premium payment by way of
deduction from monthly salary of the policyholder. This mode is known as SSS.
It is not treated at par with monthly mode. In monthly mode of premium payment
the insurer may charge an extra premium @5% to meet the extra cost of sending
notices etc. But in SSS there is no extra premium charged. The installment
premium given in the schedule of the policy is applicable as long as the
policyholder is an employee of his present employer and the employer recovers
the premium every month from the salary of the policyholder and remits it to
the life insurer without any charges. If the policyholder leaves employment or
SSS is withdrawn from the employer the policyholder will be required to pay 5%
extra on monthly premium or he can alter the mode of payment of premium to some
other mode, viz. yearly, half-yearly or quarterly. During the period in which
the premium is remitted to the insurer through the employer, the installment
premium will be deemed to fall due on the 20th day of each month
instead of the due date given in the schedule. These are given in the conditions
and privileges of the policy.
Key words:
Conditions and privileges of policy
Mode of premium payment
Salary Savings Scheme
Extra premium
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