What points to be kept in mind while buying the policy?

1. The insurance coverage offered under Section 1 & 2,i.e. Fire and Burglary, is provided only on a First Loss Basis, with the insured amount representing 50% limit of total value at risk. Underinsurance would be applicable in case the value at risk exceeds twice the sum insured.

2. The proposer’s age limit is 18 to 70 years

3. The age limit for insured persons, besides the proposer, shall be 5 to 70 years

4. This policy is a non-floating cover, meaning only the named insured person(s) shall be covered under the policy.

5. This rural insurance insurance policy can be sold on an individual or group basis.

6. Personal accident claims are to be settled on the basis of the table of benefits only.

7. In case of death of the insured, the total amount payable under section 3(B) shall be deposited in a Scheduled Commercial Bank’s account as per the child’s preference, which may be expressed via his/her guardian. Withdrawal from the same can be made as per annualized instalment which is as explained below: -

• Education Protection amount shall be payable only by means of equated annual instalments. The difference between the child’s actual age at the time of the claim and 21(twenty-one) years of age shall determine the total number of instalments permissible. For instance, if under personal accident, the child’s age is 14 (fourteen) at the claim’s time, then 7 (seven) annual instalments shall be payable up to the amount of insured sum.
• Education Protection insured sum shall be equally divided in case there are two or more children. The difference between each child’s actual age at the time of the claim and 21(twenty-one) years of age shall determine the total number of equated annual instalments payable to each child. For instance, if a child’s age is 18(eighteen) years and another is of 12 (twelve)years, then the latter would receive 9(nine) equated annual instalments whereas the former shall receive 3 (three) equated annual instalments.
• Or, the entire amount payable to the child shall be transferred to his/her account at the time of claim, and if the child/guardian so desires, the said amount may be withdrawn once the child attains 21 (twenty-one) years of age.
• In the absence of a child in whose favour the said payment may be made, the total amount payable under this section shall be paid to the nominee as mentioned under the insurance policy.