SBI Life Insurance Ltd. is a life insurance company registered under the companies act with an authorized capital of `250 crores. The head office is at Mumbai. It is a joint venture between State Bank of India and Cardif S.A. of France.
Under the aegis of this company, we have formulated a Group Insurance scheme called Super Suraksha. The scheme provides life insurance cover to groups of people who share a common identity, such as the members of an institution.
- Customers of SBH branches other than Agricultural Development Branches (ADBs) who maintain deposit or borrowal accounts singly or jointly
- Account holders at ADBs
- Housing loan borrowers of SBH
Account holders of SBH branches
Under the Super Suraksha scheme, account holders are offered group insurance cover against the risk of death due to any cause. The applicants should have a running account in which debits for recovering the premium are permissible and can be raised in ordinary conduct of the account.
The scheme is open to all account holders who are between 18 and 58 years of age.
To constitute a group, a minimum of 100 customers have to be members. We categorize groups as Group –I and Group –II depending on the age of the members, such as:
Group –I : Account holders in the age group of 18 to 39 years
Group –II : Account holders in the age group of 40 to 58 years
We levy administration charges of `72/- for Group –I and `96 for Group –II customers.
Group –I: `360/- p.a.
Group –II: `600/- p.a.
In the event of death of an insured customer due to any cause, the nominee is paid the sum assured. In the event of death of an insured customer due to an accident, the nominee is paid twice the sum assured, `2 lakhs.
The amount of premium should be paid annually in advance. The insurance cover is renewable annually. The amount of premium can be debited to the account on obtaining a consent letter from the account holder. The premium account can also be debited to the borrowal account also upon the option of the customer.
Joining the Scheme
You need to sign a consent letter declaring your date of birth. You need to also submit a declaration that you are in good health and not suffering from any serious illness.
In the event of a death, the nominee needs to submit a claim form, which will be attested by the branch. SBI Life will then send the settlement cheque to the branch.
The annual premium payment date would be the first day of the month in which the Master Policy is issued. SBH’s Shantinagar branch was the first branch to cover the first 100 accounts and the Master Policy of SBH was issued in this branch’s name. The Master Policy number is 82001002208 with effect from August 2002. All customers who join the scheme after August 2002 would need to pay the premium on a prorated basis up to July 2003. The annual renewal date will be 1st August.
The premium recovered from the customers is credited to a non-operative collection account in the name of SBI Life Collection account. For each member, the date of credit is the start date for the insurance cover. At the end of each month, the balance in this account is remitted to SBI Life Consolidated Collection account, Current A/c No. 8024491 maintained at SBH’s Gunfoundry branch under advise to P&SB Department, H.O. enclosing therewith the statement showing the details of the account holders such as name, age, sum assured, and address. The SBI Life Consolidated collection account is debited monthly and the outstanding amount is sent to SBI Life through a Demand Draft by the P&SB Department, H.O. with the details of the accounts debited.
For ADB Branches (vide revised circular No. DEP/2002-2003/21 dated 18.02.2003)
Customers at ADB branches are eligible for the Super Suraksha scheme. You have several options for the sum assured, such as `25,000/-, `50,000/- and `1,00,000/-.
The annual premium and administrative charges are:
|` 1,00,000/-||` 480/-||` 72/-|
|` 50,000/-||` 240/-||` 36/-|
|` 25,000/-||` 120/-||` 18/-|
The first 100 accounts under ADBs group was formed at our Medak ADB branch. The Master Policy No. is 81001000909.
(vide circular No. DEP/2002-03/12 dated 18.11.02)
The Super Suraksha scheme is available to all housing loan borrowers, both existing and new borrowers, in the age group of 20 – 60 yea` In the event of death of the borrower, surviving members of the deceased’s family are not burdened by the repayment of the loan.
Under this scheme, you need to make only a one-time payment. You can even avail finance for the premium payable by debiting the premium amount to the existing housing loan account. The EMI is adjusted accordingly. Life insurance cover is available until the housing loan is liquidated or until the final EMI date according to the agreed repayment schedule, until the borrower’s 70th birth day, or until the death of the insured borrower, whichever is earlier.
Insurance cover is not available for death due to reasons other than an accident during the first 45 days and death due to suicide or self inflicted injuries during the first 12 months. The premium amount depends upon the loan amount, the age of the borrower, and the repayment period. For example, for a borrower who is 35 years old, with a principal loan of `1 lakh for a period of 10 years, the total premium amount payable would be `1365/-.
Joining the Scheme
For loans up to `5 lakhs, the borrower needs to sign the consent-cum-authorization letter with a health declaration.
For loan amounts ranging between `5 lakhs and `7.50 lakhs, the borrower needs to fill up and submit to SBI Life a questionnaire for acceptance to this scheme.
For loan amounts above `7.50 lakhs, the borrower needs to undergo a medical examination by a doctor or clinic as authorized by SBI Life. At the end of each quarter, SBH levies administration charges of 20% of the premium amount, subject to a maximum of `500/- for every 1 lakh of loan amount.
Collection and Remittance of the premium amount
The branch sends the premium amount recovered from the borrower through a bank draft in the name of SBI Life Insurance Co. Ltd., Mumbai along with a statement of particulars of the borrower as per Annexure X. A copy of the statement is sent to our P&SB department. The remittance is made immediately after the premium is recovered.