Canara HSBC Oriental Bank of Commerce Life Insurance
Group Secure Plan
Group Non-Linked Non-Par Pure Risk Premium Credit Life
Insurance Plan
"This is the authorized presentation and should not be altered
without the permission of the Insurance Company.“
Version : Oct’19
Key Benefits
• Peace of mind – In the unfortunate event of your borrower’s Death/TPD, the insurance cover
will protect his/her family
• Meeting credit and insurance needs with one solution
• Risk coverage – Option to choose between a) Death cover only or b) Death and TPD cover.
Death and TPD cover option will only be offered to Home loan, Loan Against Property (LAP),
Education loan and 4 wheeler loans
• Availability of two coverage options namely, Level Cover (death/ TPD cover remains same
throughout the term of the cover) or Reducing Cover (the death/TPD cover reduces over the
term of the cover)
• Joint borrowers (up to three) are also covered
• Rebates are available for females, and joint borrowers, which could further reduce the
premium
• Customers can finance the premium through master policyholder by adding the premium
amount to their loan and spread the cost through equated monthly installments (EMIs).For
example, if loan amount is 10,00,000 and insurance premium is 15,000; then the customer can take loan
for 10,15,000 (loan amount + insurance premium) from the lender and EMI will be fixed for 10,15,000
instead of 10,00,000
• Insured member may be entitled for tax benefits* under Section 80C and Section 10(10D), as
per the Income tax Act, 1961
*Tax Benefits under the policy will be as per the prevailing Income Tax laws and are subject to amendments from time to time. For
tax related queries, contact your independent tax advisor.
Eligibility Criteria^
Product Feature
Minimum
Maximum
Age at entry
•
18 years for all kinds of loans
other than Education Loan
•
12 years for Education Loan
•
18 years for Total and
Permanent Disability (TPD)
benefit
64 years
Cover Ceasing
Age
-
69 years
Cover Term
•
2 years for Single premium
•
5 years for Regular and Limited
premium option
•
Home/LAP Loan : 30 years
• Education/4 wheeler/Business Loan
: 15 years
•
Personal/Commercial vehicle/2
Wheeler Loan : 10 years
Sum Assured
10,000
No limit*
Group Size
50
No Limit
* There is no upper limit on the basic Sum Assured in case of Death cover only option. However in case of Death and TPD option,
the Sum Assured will be limited to a maximum of `10,000,000 per member.
^ The eligibility criteria may vary based on scheme rules within the above limits
Premium Payment Options
Level Cover Reducing Cover
Single Premium Not Allowed Allowed
Regular Premium
(minimum policy term for
this option is 5 years)
Allowed Not Allowed
Limited Premium
(pay for 5 years)
Not Allowed Allowed
Regular premium and limited premium options will only be allowed to provide cover against
Home loan and Loan against Property
Moratorium Period
• For loans with a moratorium period, the cover term will also include the
moratorium period and during the moratorium period the cover may be level or
increasing as per the terms and conditions agreed with the Master Policyholder
• Maximum moratorium period allowed in this plan is 5 years
• Please note that premium for cover will be payable from the inception only
irrespective of whether loan EMI has started or not
Cover Continuance Option
Member will have option to continue the insurance cover after foreclosure
of the loan for remaining tenure as per original terms and conditions
Cover Term & Sum Assured
Choose any cover term up to original loan term
Choose any sum assured up to 120% of the loan amount
Death Benefit
Sum Assured
Please Note: No Maturity Benefit is available in this Plan
Death Benefit
Total Permanent Disability
Sum assured
Cover for the member will terminate on occurrence of Death or TPD,
whichever is earlier
• Total and irrecoverable loss of sight of both eyes. The blindness must be confirmed by an
Ophthalmologist;
OR
• Loss of use or loss by severance of two or more limbs at or above wrists or ankles;
OR
• Total and irrecoverable loss of sight of one eye and loss of use or loss by severance of one limb at
or above wrist or ankle.
• The above disability must have lasted, without interruption, for at least six consecutive months
from the date of diagnosis and must, in the opinion of a qualified medical practitioner appointed
by the Company, be deemed permanent.
• If as a result of accidental bodily injury, sickness or disease, there is a total and permanent
disability resulting in total and irrecoverable loss of use of two or more limbs as mentioned in the
benefit (including coma) for at least six consecutive months, the benefit becomes payable.
Total and Permanent Disability shall mean the occurrence of any of the following
conditions as a result of accidental bodily injury, sickness or disease : -
Total Permanent Disability
Sum Assured
Level Sum Assured
Reducing Sum Assured
• Sum Assured reduces based on the term of
cover, interest rate and Initial Sum Assured*
• Reduction in Sum Assured pattern during the
term of coverage is fixed at the time of
issuance of COI^
Reducing Cover
Level Cover
• Sum Assured will remain constant over the
cover term
• Sum Assured = Initial Sum Assured*
* “Initial Sum Assured” will be the amount of cover opted for by
the member (as stated in the membership form
^COI – Certificate of Insurance
• The Company’s liability under the policy shall be limited to the extent of death/TPD benefit (Sum Assured at the
time of death/TPD as per the defined schedule specified at the outset in the certificate of insurance) and the
Company shall not be liable for any shortfall of such benefit over the loan outstanding
Coverage option for Joint Borrowers
Maximum of 3 Joint Borrowers are allowed
• 2 options:
• Option 1 - Joint Basis
• Each of the joint borrowers will be insured for 100% of the initial sum assured
• Premium rate charged for youngest life assured will get rebate
• In case claim is paid for deceased joint borrower, cover ceases for the
surviving joint borrower(s)
• Option 2 - Loan share percentage
• Initial Sum Assured will be split between the joint borrowers in the ratio of
the loan as stated in the membership form
• If the claim is paid on death/occurrence of TPD of a joint borrower, then the
Insurance Cover shall cease only for that Insured Member
• However, the Insurance Cover shall continue for the surviving Joint Borrower(s) to
the extent of their share(s) at the same premium agreed at the time of issuance of
the Certificate of Insurance
Rebate
• Rebate for female lives: For female life 3 years set back is given to the male rates
• Joint Borrower rebate: (only applicable for joint borrower option1 i.e. Joint basis cover for
100% of the loan amount)
• Youngest joint borrower will get rebate as per below table:
Rebate (%age of premium) on youngest life assured
Premium
payment option
Two lives Three lives
Single premium
15% 25%
Regular &
Limited premium
5% 10%
Revival
For Regular/Limited premium, if premiums are not paid within the grace period, the cover
for the Member will lapse
No coverage will be provided after the grace period in case the cover lapses
Members have the option to revive the cover within 5 years from the date of first unpaid
premium
Company reserves the right to revive the cover based on underwriting decision
Post revival of the insurance coverage, the product benefits would be reinstated to the full
level as if the insurance coverage never acquired the Lapse status
Foreclosure of Loan
Level Sum Assured
Reducing Sum Assured
Single Premium
Not applicable
60% x Single premium x
[Unexpired term/Cover term]
x [Reduced sum
assured/Initial sum assured]
Regular premium
No surrender value is payable
Not applicable
Limited Premium
Not applicable
60% x premiums paid x
[Unexpired term/Cover term]
x [Reduced sum
assured/Initial sum assured]
• Surrender value is payable provided the member repays the outstanding loan amount in full
and submits a surrender request with the company
• In single premium option, the surrender benefit will be available from the end of first year
• In case of limited premium options, the surrender benefit will be available only after three
years have elapsed provided premium have been paid for a minimum of three years
Surrender benefit is given in the table below:
Master Policyholder can terminate the Master Policy at any time
Existing members will be given option to surrender his/her membership
Remaining members who do not opt for surrender of cover will be serviced by the
Company on the basis of existing data of members till the exit of last member
Surrender of Master Policy
Exclusions
• Within 12 months from the date of commence of risk cover, Claimant shall be entitled to at least
80% of the total premiums paid, till the date of death or surrender value available as on the date
of death whichever is higher, provided the coverage is in-force and all coverage for that member
will automatically cease
• Within 12 months from the Revival date of cover, Claimant shall be entitled to an amount which is
higher of 80% of the total premiums paid till the date of death or the surrender value as available
on the date of death and all coverage for that member will automatically cease
Suicide
• During the first 45 days from the date of commencement of member’s cover only (and not on
revival of cover for that member), the Company shall not be liable to pay any claim except a
death/TPD claim arising on account of an accident and the Company shall refund the premium
using the surrender value formula and all coverage for that member will automatically cease.
45 days waiting period
• Exclusions for Total Permanent Disability is mentioned in product brochure and sample policy
contract available on our website
Total Permanent Disability
Thank You
"This is the authorized presentation and should not be altered without the permission of the Insurance Company.“
Version : Oct’19
