LIC: Services to Policyholders

Services
Acceptance of Premium
Modes of Premium Payment Direct Remittance Modes:
Policyholders can avail of any of the direct premium payment modes like Yearly, Half-yearly, Quarterly, and Monthly. Premiums can be remitted as follows:1. Direct remittance of cheques or cash at our office cash counters .2. Remittance through a cheque/banker’s draft or cheque or money order to the office servicing your policy.Grace Period for Premium Payment: A grace period of one month but not less than 30 days (from the due date of the first unpaid premium) is available for payment of instalment premiums for all modes of premium payment.Accounting records are maintained for individual policies and are made available upon request. Certificates of Premium Payment for Income Tax purposes are provided upon request.


Revival of Lapsed Policy
If premiums are not paid within the days of grace the policy lapses. Life risk cover may not be available unless the policy is revived (unless claim concessions apply to the policy) by paying the unpaid premium and interest with other requirements (such as health declaration, medical report, special reports, etc – as may be sought by the underwriter) depending upon the period for which premiums have not been paid, age of the policyholder and the sum to be revived under the policy.Life assured is subject to fresh health assessment when a revival is underwritten. Hence, there is no guarantee that the policy will be revived on the same terms as originally accepted.Policyholders can avail of the following schemes for reviving their lapsed policies:
Simple revival scheme
Policy Loan-cum-revival scheme
Survival Benefit-cum-revival scheme
Instalment revival scheme
Special revival scheme
Revival quotations are available upon request

Policy Loans
Policy Loans are granted under Endowment, Money back and Whole life polices 2 years from the commencement of the policy,provided at least 2 years premium are paid. The rate of interest charged may vary from time to time. Policy loan can be repaid at the policy holder's convenience,during the term of the policy. Loan interest must be paid an half yearly basis.Requirements: 1. Loan application form. 2. The Original Policy Document.3. Tamasuk


Nominations
Policy holders must nominate a beneficiary at the time of the proposal for life insurance itself. The Nomination can be changed any number of times during the term of the policy LIC Nepal recommends that only the people having insurable interest in the life of the assured can be nominated as beneficiaries under the policy – parents, wife, children, siblings, employer, etc. The Nominee has no right on the policy or the policy monies during the lifetime of the assured.APPOINTEE: Where the nominee is a minor, the policyholder is advised to appoint another elder person as an ‘Appointee’ who will not only receive the money on the minor’s behalf but also will undertake to spend for the minor’s welfare. Hence care should to be taken to appoint only a highly responsible and closely related person as an “appointee”.Requirements: Form of Notice-cum-Change of Nomination (in Duplicate).

Change of Address
The policyholder must keep LIC Nepal constantly informed of any changes in his address for communication. The address can be changed any number of times at no additional cost to the policyholder.

Change of Mode of Payment
The mode or frequency of payment of premiums can be altered to higher or lower frequency during the term of the policy. Changes between Salary savings modes to direct payment modes are also allowed. This change is done in such a way as to coincide with the date of Policy anniversary or the corresponding Monthly, Quarterly or Half Yearly dates. As a rule, no alterations are entertained during the first policy anniversary.Requirements: Requisition for change of Mode. Money can be remitted after getting the quote from the Office.


Surrenders and Cancellations

All LIC policies can be surrendered for cash after at least 2 years’ premiums have been paid. However, we advise our valued policyholders not to surrender or cancel their life insurance policies for the following reasons:1. You will be devoid of the precious life insurance cover. The purpose of insuring yourself was to secure your family members’ financial future. Don’t you think you are endangering their future by surrendering/cancelling your policy?2. If you have to seek the same insurance cover again tomorrow, you will end up paying more premiums for the same benefit, because your age has increased and consequently has the risk in covering your life. Your current policy is cheaper and generally offers more value for your money invested. Remember the proverb, “the bird in hand is worth two in the bush”.3. When you surrender your policy, you are breaking your contract. LIC Nepal also has covered your risk so far, as well as incurred management expenses in maintaining your policy. Thus you may receive only a portion of what you have paid as premiums – depending upon the policy term contracted and the duration elapsed so far.4. No surrender value is available if the polices are cancelled before at least 2 years’ premiums are paid.5. Vested bonuses are added only after at least 5 years’ premiums are paid and the five year period has elapsed from the commencement date of the policy. So no bonuses would accrue in respect of policies surrendered within 5 years from the commencement date.Guaranteed Surrender Value: Provided that eligibility to receive surrender value is met by a policy, LIC Nepal guarantees that the surrender value payable shall not fall below 30% of all the premiums paid under the policy, excluding the first year premiums.Requirements:

1. Requisition for a quotation of surrender value

2. Request for Surrender value Payment

3. Original Policy bond

4. Discharge Voucher

POST by Bijay Thapa. bijay-lifeinsurance.blogspot.com