112
Sales Brochure Pradhan Mantri Vaya Vandana Yojana.AI (English)(Modified - 2020)
Open Size: 8 Inch (W) x 9 Inch (H) Closed Size : 4 Inch (W) x 9 Inch (H)
Regd. Off.: Life Insurance Corporation of India,
Yogakshema, Central Office, J. B. Marg, Mumbai 400 021.
Registration No.: 512
For the welfare of senior citizens of our country
(The scheme is available up to 31st March 2023)
Pradhan Mantri
Vaya Vandana Yojana
(Modified-2020)
Plan No: 856 UIN :512G336V01
7.40% per annum for monthly pension
(equivalent to 7.66% per annum)
Shri Narendra Modi
Hon. Prime Minister
2 3
5. No Insurer shall repudiate a life insurance Policy on
the ground of Fraud, if the Insured / beneficiary can
prove that the mis-statement was true to the best of
his knowledge and there was no deliberate intention
to suppress the fact or that such mis-statement of or
suppression of material fact are within the knowledge
of the insurer. Onus of disproving is upon the
policyholder, if alive, or beneficiaries.
6. Life insurance Policy can be called in question within 3
years on the ground that any statement of or
suppression of a fact material to expectancy of life of
the insured was incorrectly made in the proposal or
other document basis which policy was issued or
revived or rider issued. For this, the insurer should
communicate in writing to the insured or legal
representative or nominee or assignees of insured, as
applicable, mentioning the ground and materials on
which decision to repudiate the policy of life
insurance is based.
7. In case repudiation is on ground of mis-statement and
not on fraud, the premium collected on policy till the
date of repudiation shall be paid to the insured or
legal representative or nominee or assignees of
insured, within a period of 90 days from the date of
repudiation.
8. Fact shall not be considered material unless it has a
direct bearing on the risk undertaken by the insurer.
The onus is on insurer to show that if the insurer had
been aware of the said fact, no life insurance policy
would have been issued to the insured.
9. The insurer can call for proof of age at any time if he
is entitled to do so and no policy shall be deemed to
be called in question merely because the terms of the
policy are adjusted on subsequent proof of age of life
insured. So, this Section will not be applicable for
questioning age or adjustment based on proof of age
submitted subsequently.
[Disclaimer: This is not a comprehensive list of Section 45
of the Insurance Act, 1938 and only a simplified version
prepared for general information. Policy Holders are
advised to refer to the Section 45 of the Insurance Act,
1938, for complete and accurate details.]
PROHIBITION OF REBATES SECTION 41 OF
INSURANCE ACT, 1938:
1) No person shall allow or offer to allow, either directly
or indirectly, as an inducement to any person to take
out or renew or continue an insurance in respect of
any kind of risk relating to lives or property in India,
any rebate of the whole or part of the commission
payable or any rebate of the premium shown on the
policy, nor shall any person taking out or renewing or
continuing a policy accept any rebate, except such
rebate as may be allowed in accordance with the
published prospectuses or tables of the insurer.
2) Any person making default in complying with the
provisions of this section shall be liable for a penalty
which may extend to ten lakh rupees.
Note: “Conditions apply” for which please refer to the
Policy document or contact our nearest Branch Office.
This product brochure gives only salient features of
the plan. For further details please refer to the Policy
document on our website www.licindia.in or contact
our nearest Branch Office.
To purchase the policy online please log on to
www.licindia.in
BEWARE OF SPURIOUS PHONE CALLS AND
FICTITIOUS/FRAUDULENT OFFERS
IRDAI is not involved in activities like selling insurance
policies, announcing bonus or investment of premiums.
Public receiving such phone calls are requested to lodge a
police complaint.
Registered Office:
Life Insurance Corporation of India
Central Office, Yogakshema,
Jeevan Bima Marg,
Mumbai - 400021.
Website: www.licindia.in
Registration Number : 512
1. Introduction:
The Government of India has introduced Pradhan
Mantri Vaya Vandana Yojana (Modified-2020), with
modified rate of pension under this plan and extended
the period of sale of this plan for a further period of
three years from Financial Year 2020-21 till 31
st
March,
2023. As per the terms and conditions under this plan,
guaranteed rates of pension for policies sold during a
year will be reviewed and decided at the beginning of
each year by the Ministry of Finance, Government of
India. For the first financial year i.e. upto 31
st
March
2021, the Scheme will provide an assured pension of
7.40% p.a. payable monthly.
LIC of India is solely authorised to operate this
scheme.
This scheme can be purchased offline as well as
online. To Purchase this scheme online please log on
to our website www.licindia.in.
2. Benefits
a. Pension Payment :
On survival of the Pensioner during the policy term of
10 years, pension in arrears (at the end of each
period as per mode chosen) shall be payable.
b. Death Benefit:
On death of the Pensioner during the policy term of
10 years, the Purchase Price shall be refunded to the
beneficiary.
c. Maturity Benefit:
On survival of the pensioner to the end of the policy
term of 10 years, Purchase price along with final
pension installment shall be payable.
3. Eligibility Conditions and Other Restrictions:
a) Minimum Entry Age : 60 years (completed)
b) Maximum Entry Age : No limit
c) Policy Term : 10 years
d) Minimum Pension : ` 1,000/- per month
` 3,000/- per quarter
`6,000/-per half-year
`12,000/- per year
e) Maximum Pension : ` 9,250/-per month
` 27,750/-per quarter
` 55,500/-per half-year
` 1,11,000/-per year
Total amount of purchase price under all the policies
under this plan, and all the policies taken under
Pradhan Mantri Vaya Vandana Yojana (with UIN
512G311V01 and UIN: 512G311V02) allowed to a
senior citizen shall not exceed `15 lakhs.
4. Payment of Purchase Price:
The scheme can be purchased by payment of a lump
sum Purchase Price. The pensioner has an option to
choose either the amount of pension or the
Purchase Price.
The minimum and maximum Purchase Price under
different modes of pension will be as under:
Mode Minimum Maximum
of Pension Purchase Price Purchase Price
Yearly ` 1,56,658/- ` 14,49,086/-
Half-yearly ` 1,59,574/- ` 14,76,064/-
Quarterly ` 1,61,074/- ` 14,89,933/-
Monthly ` 1,62,162/- ` 15,00,000/-
The Purchase Price to be charged shall be rounded
off to nearest rupee.
5. Mode of pension payment:
The modes of pension payment are monthly,
quarterly, half-yearly & yearly. The pension payment
shall be through NEFT or Aadhaar Enabled Payment
System. The purchase of the policy under this
Government subsidised scheme requires unique
Aadhaar number validation.
The first installment of pension shall be paid after 1
year, 6 months, 3 months or 1 month from the date
of purchase of the same depending on the mode of
pension payment i.e. yearly, half-yearly, quarterly or
monthly respectively.
6. Sample Pension rates per `1000/- Purchase
Price
The pension rates for `1000/- Purchase Price for
different modes of pension payments are as below:
Yearly: ` 76.60 p.a.
Half-yearly: ` 75.20 p.a.
Quarterly: ` 74.50 p.a.
Monthly: ` 74.00 p.a.
The pension installment shall be rounded off to the
nearest rupee. These rates are age independent.
7. Surrender Value:
The scheme allows premature exit during the policy
term under exceptional circumstances like the
Pensioner requiring money for the treatment of any
critical/terminal illness of self or spouse. The
Surrender Value payable in such cases shall be 98%
of the Purchase Price.
8. Loan:
Loan facility is available after completion of 3 policy
years. The maximum loan that can be granted shall
be 75% of the Purchase Price.
The rate of interest to be charged for loan amount
shall be determined at periodic intervals.
For the loan sanctioned till 30
th
April, 2021,
the applicable interest rate is 9.5% p.a. for
the entire term of the loan.
Loan interest will be recovered from the pension
amount payable under the policy. The Loan interest
will accrue as per the frequency of pension payment
under the policy and it will be due on the due date of
pension. However, the loan outstanding shall be
recovered from the claim proceeds at the time of
exit. The applicable interest rate shall be based on
the method approved by IRDAI.
9. Taxes:
Statutory Taxes, if any, imposed on this plan by the
Government of India or any other constitutional Tax
Authority of India shall be as per the Tax laws and the
rate of tax as applicable from time to time.
The amount of Tax (GST) paid shall not be
considered for the calculation of benefits payable
under the plan.
10. Free Look period:
If a policyholder is not satisfied with the “Terms and
Conditions” of the policy, he/she may return the
policy to the Corporation within 15 days (30 days if
this policy is purchased online) from the date of
receipt of the policy stating the reason of objections.
The amount to be refunded within free look period
shall be the Purchase Price deposited by the
policyholder after deducting the charges for Stamp
duty and pension paid, if any.
SECTION 45 OF THE INSURANCE ACT, 1938:
The provision of Section 45 of the Insurance
Act, 1938 shall be as amended from time to
time. The simplified version of this provision is as
under:
Provisions regarding policy not being called into
question in terms of Section 45 of the Insurance Act,
1938 are as follows:
1. No Policy of Life Insurance shall be called in question
on any ground whatsoever after expiry of 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
2. On the ground of fraud, a policy of Life Insurance
may be called in question within 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
For this, the insurer should communicate in writing to
the insured or legal representative or nominee or
assignees of insured, as applicable, mentioning the
ground and materials on which such decision is
based.
3. Fraud means any of the following acts committed by
insured or by his agent, with the intent to deceive the
insurer or to induce the insurer to issue a life
insurance policy:
a. The suggestion, as a fact of that which is not true
and which the insured does not believe to be
true;
b. The active concealment of a fact by the insured
having knowledge or belief of the fact;
c. Any other act fitted to deceive; and
d. Any such act or omission as the law specifically
declares to be fraudulent.
4. Mere silence is not fraud unless, depending on
circumstances of the case, it is the duty of the insured
or his agent keeping silence to speak or silence is in
itself equivalent to speak.
Pradhan Mantri Vaya
Vandana Yojana (Modified-2020)
(A Non-Linked, Non-Participating, Pension Scheme
subsidized by the Government of India)
(UIN: 512G336V01)
4 5
5. No Insurer shall repudiate a life insurance Policy on
the ground of Fraud, if the Insured / beneficiary can
prove that the mis-statement was true to the best of
his knowledge and there was no deliberate intention
to suppress the fact or that such mis-statement of or
suppression of material fact are within the knowledge
of the insurer. Onus of disproving is upon the
policyholder, if alive, or beneficiaries.
6. Life insurance Policy can be called in question within 3
years on the ground that any statement of or
suppression of a fact material to expectancy of life of
the insured was incorrectly made in the proposal or
other document basis which policy was issued or
revived or rider issued. For this, the insurer should
communicate in writing to the insured or legal
representative or nominee or assignees of insured, as
applicable, mentioning the ground and materials on
which decision to repudiate the policy of life
insurance is based.
7. In case repudiation is on ground of mis-statement and
not on fraud, the premium collected on policy till the
date of repudiation shall be paid to the insured or
legal representative or nominee or assignees of
insured, within a period of 90 days from the date of
repudiation.
8. Fact shall not be considered material unless it has a
direct bearing on the risk undertaken by the insurer.
The onus is on insurer to show that if the insurer had
been aware of the said fact, no life insurance policy
would have been issued to the insured.
9. The insurer can call for proof of age at any time if he
is entitled to do so and no policy shall be deemed to
be called in question merely because the terms of the
policy are adjusted on subsequent proof of age of life
insured. So, this Section will not be applicable for
questioning age or adjustment based on proof of age
submitted subsequently.
[Disclaimer: This is not a comprehensive list of Section 45
of the Insurance Act, 1938 and only a simplified version
prepared for general information. Policy Holders are
advised to refer to the Section 45 of the Insurance Act,
1938, for complete and accurate details.]
PROHIBITION OF REBATES SECTION 41 OF
INSURANCE ACT, 1938:
1) No person shall allow or offer to allow, either directly
or indirectly, as an inducement to any person to take
out or renew or continue an insurance in respect of
any kind of risk relating to lives or property in India,
any rebate of the whole or part of the commission
payable or any rebate of the premium shown on the
policy, nor shall any person taking out or renewing or
continuing a policy accept any rebate, except such
rebate as may be allowed in accordance with the
published prospectuses or tables of the insurer.
2) Any person making default in complying with the
provisions of this section shall be liable for a penalty
which may extend to ten lakh rupees.
Note: “Conditions apply” for which please refer to the
Policy document or contact our nearest Branch Office.
This product brochure gives only salient features of
the plan. For further details please refer to the Policy
document on our website www.licindia.in or contact
our nearest Branch Office.
To purchase the policy online please log on to
www.licindia.in
BEWARE OF SPURIOUS PHONE CALLS AND
FICTITIOUS/FRAUDULENT OFFERS
IRDAI is not involved in activities like selling insurance
policies, announcing bonus or investment of premiums.
Public receiving such phone calls are requested to lodge a
police complaint.
Registered Office:
Life Insurance Corporation of India
Central Office, Yogakshema,
Jeevan Bima Marg,
Mumbai - 400021.
Website: www.licindia.in
Registration Number : 512
1. Introduction:
The Government of India has introduced Pradhan
Mantri Vaya Vandana Yojana (Modified-2020), with
modified rate of pension under this plan and extended
the period of sale of this plan for a further period of
three years from Financial Year 2020-21 till 31
st
March,
2023. As per the terms and conditions under this plan,
guaranteed rates of pension for policies sold during a
year will be reviewed and decided at the beginning of
each year by the Ministry of Finance, Government of
India. For the first financial year i.e. upto 31
st
March
2021, the Scheme will provide an assured pension of
7.40% p.a. payable monthly.
LIC of India is solely authorised to operate this
scheme.
This scheme can be purchased offline as well as
online. To Purchase this scheme online please log on
to our website www.licindia.in.
2. Benefits
a. Pension Payment :
On survival of the Pensioner during the policy term of
10 years, pension in arrears (at the end of each
period as per mode chosen) shall be payable.
b. Death Benefit:
On death of the Pensioner during the policy term of
10 years, the Purchase Price shall be refunded to the
beneficiary.
c. Maturity Benefit:
On survival of the pensioner to the end of the policy
term of 10 years, Purchase price along with final
pension installment shall be payable.
3. Eligibility Conditions and Other Restrictions:
a) Minimum Entry Age : 60 years (completed)
b) Maximum Entry Age : No limit
c) Policy Term : 10 years
d) Minimum Pension : ` 1,000/- per month
` 3,000/- per quarter
`6,000/-per half-year
`12,000/- per year
e) Maximum Pension : ` 9,250/-per month
` 27,750/-per quarter
` 55,500/-per half-year
` 1,11,000/-per year
Total amount of purchase price under all the policies
under this plan, and all the policies taken under
Pradhan Mantri Vaya Vandana Yojana (with UIN
512G311V01 and UIN: 512G311V02) allowed to a
senior citizen shall not exceed `15 lakhs.
4. Payment of Purchase Price:
The scheme can be purchased by payment of a lump
sum Purchase Price. The pensioner has an option to
choose either the amount of pension or the
Purchase Price.
The minimum and maximum Purchase Price under
different modes of pension will be as under:
Mode Minimum Maximum
of Pension Purchase Price Purchase Price
Yearly ` 1,56,658/- ` 14,49,086/-
Half-yearly ` 1,59,574/- ` 14,76,064/-
Quarterly ` 1,61,074/- ` 14,89,933/-
Monthly ` 1,62,162/- ` 15,00,000/-
The Purchase Price to be charged shall be rounded
off to nearest rupee.
5. Mode of pension payment:
The modes of pension payment are monthly,
quarterly, half-yearly & yearly. The pension payment
shall be through NEFT or Aadhaar Enabled Payment
System. The purchase of the policy under this
Government subsidised scheme requires unique
Aadhaar number validation.
The first installment of pension shall be paid after 1
year, 6 months, 3 months or 1 month from the date
of purchase of the same depending on the mode of
pension payment i.e. yearly, half-yearly, quarterly or
monthly respectively.
6. Sample Pension rates per `1000/- Purchase
Price
The pension rates for `1000/- Purchase Price for
different modes of pension payments are as below:
Yearly: ` 76.60 p.a.
Half-yearly: ` 75.20 p.a.
Quarterly: ` 74.50 p.a.
Monthly: ` 74.00 p.a.
The pension installment shall be rounded off to the
nearest rupee. These rates are age independent.
7. Surrender Value:
The scheme allows premature exit during the policy
term under exceptional circumstances like the
Pensioner requiring money for the treatment of any
critical/terminal illness of self or spouse. The
Surrender Value payable in such cases shall be 98%
of the Purchase Price.
8. Loan:
Loan facility is available after completion of 3 policy
years. The maximum loan that can be granted shall
be 75% of the Purchase Price.
The rate of interest to be charged for loan amount
shall be determined at periodic intervals.
For the loan sanctioned till 30
th
April, 2021,
the applicable interest rate is 9.5% p.a. for
the entire term of the loan.
Loan interest will be recovered from the pension
amount payable under the policy. The Loan interest
will accrue as per the frequency of pension payment
under the policy and it will be due on the due date of
pension. However, the loan outstanding shall be
recovered from the claim proceeds at the time of
exit. The applicable interest rate shall be based on
the method approved by IRDAI.
9. Taxes:
Statutory Taxes, if any, imposed on this plan by the
Government of India or any other constitutional Tax
Authority of India shall be as per the Tax laws and the
rate of tax as applicable from time to time.
The amount of Tax (GST) paid shall not be
considered for the calculation of benefits payable
under the plan.
10. Free Look period:
If a policyholder is not satisfied with the “Terms and
Conditions” of the policy, he/she may return the
policy to the Corporation within 15 days (30 days if
this policy is purchased online) from the date of
receipt of the policy stating the reason of objections.
The amount to be refunded within free look period
shall be the Purchase Price deposited by the
policyholder after deducting the charges for Stamp
duty and pension paid, if any.
SECTION 45 OF THE INSURANCE ACT, 1938:
The provision of Section 45 of the Insurance
Act, 1938 shall be as amended from time to
time. The simplified version of this provision is as
under:
Provisions regarding policy not being called into
question in terms of Section 45 of the Insurance Act,
1938 are as follows:
1. No Policy of Life Insurance shall be called in question
on any ground whatsoever after expiry of 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
2. On the ground of fraud, a policy of Life Insurance
may be called in question within 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
For this, the insurer should communicate in writing to
the insured or legal representative or nominee or
assignees of insured, as applicable, mentioning the
ground and materials on which such decision is
based.
3. Fraud means any of the following acts committed by
insured or by his agent, with the intent to deceive the
insurer or to induce the insurer to issue a life
insurance policy:
a. The suggestion, as a fact of that which is not true
and which the insured does not believe to be
true;
b. The active concealment of a fact by the insured
having knowledge or belief of the fact;
c. Any other act fitted to deceive; and
d. Any such act or omission as the law specifically
declares to be fraudulent.
4. Mere silence is not fraud unless, depending on
circumstances of the case, it is the duty of the insured
or his agent keeping silence to speak or silence is in
itself equivalent to speak.
6 7
5. No Insurer shall repudiate a life insurance Policy on
the ground of Fraud, if the Insured / beneficiary can
prove that the mis-statement was true to the best of
his knowledge and there was no deliberate intention
to suppress the fact or that such mis-statement of or
suppression of material fact are within the knowledge
of the insurer. Onus of disproving is upon the
policyholder, if alive, or beneficiaries.
6. Life insurance Policy can be called in question within 3
years on the ground that any statement of or
suppression of a fact material to expectancy of life of
the insured was incorrectly made in the proposal or
other document basis which policy was issued or
revived or rider issued. For this, the insurer should
communicate in writing to the insured or legal
representative or nominee or assignees of insured, as
applicable, mentioning the ground and materials on
which decision to repudiate the policy of life
insurance is based.
7. In case repudiation is on ground of mis-statement and
not on fraud, the premium collected on policy till the
date of repudiation shall be paid to the insured or
legal representative or nominee or assignees of
insured, within a period of 90 days from the date of
repudiation.
8. Fact shall not be considered material unless it has a
direct bearing on the risk undertaken by the insurer.
The onus is on insurer to show that if the insurer had
been aware of the said fact, no life insurance policy
would have been issued to the insured.
9. The insurer can call for proof of age at any time if he
is entitled to do so and no policy shall be deemed to
be called in question merely because the terms of the
policy are adjusted on subsequent proof of age of life
insured. So, this Section will not be applicable for
questioning age or adjustment based on proof of age
submitted subsequently.
[Disclaimer: This is not a comprehensive list of Section 45
of the Insurance Act, 1938 and only a simplified version
prepared for general information. Policy Holders are
advised to refer to the Section 45 of the Insurance Act,
1938, for complete and accurate details.]
PROHIBITION OF REBATES SECTION 41 OF
INSURANCE ACT, 1938:
1) No person shall allow or offer to allow, either directly
or indirectly, as an inducement to any person to take
out or renew or continue an insurance in respect of
any kind of risk relating to lives or property in India,
any rebate of the whole or part of the commission
payable or any rebate of the premium shown on the
policy, nor shall any person taking out or renewing or
continuing a policy accept any rebate, except such
rebate as may be allowed in accordance with the
published prospectuses or tables of the insurer.
2) Any person making default in complying with the
provisions of this section shall be liable for a penalty
which may extend to ten lakh rupees.
Note: “Conditions apply” for which please refer to the
Policy document or contact our nearest Branch Office.
This product brochure gives only salient features of
the plan. For further details please refer to the Policy
document on our website www.licindia.in or contact
our nearest Branch Office.
To purchase the policy online please log on to
www.licindia.in
BEWARE OF SPURIOUS PHONE CALLS AND
FICTITIOUS/FRAUDULENT OFFERS
IRDAI is not involved in activities like selling insurance
policies, announcing bonus or investment of premiums.
Public receiving such phone calls are requested to lodge a
police complaint.
Registered Office:
Life Insurance Corporation of India
Central Office, Yogakshema,
Jeevan Bima Marg,
Mumbai - 400021.
Website: www.licindia.in
Registration Number : 512
1. Introduction:
The Government of India has introduced Pradhan
Mantri Vaya Vandana Yojana (Modified-2020), with
modified rate of pension under this plan and extended
the period of sale of this plan for a further period of
three years from Financial Year 2020-21 till 31
st
March,
2023. As per the terms and conditions under this plan,
guaranteed rates of pension for policies sold during a
year will be reviewed and decided at the beginning of
each year by the Ministry of Finance, Government of
India. For the first financial year i.e. upto 31
st
March
2021, the Scheme will provide an assured pension of
7.40% p.a. payable monthly.
LIC of India is solely authorised to operate this
scheme.
This scheme can be purchased offline as well as
online. To Purchase this scheme online please log on
to our website www.licindia.in.
2. Benefits
a. Pension Payment :
On survival of the Pensioner during the policy term of
10 years, pension in arrears (at the end of each
period as per mode chosen) shall be payable.
b. Death Benefit:
On death of the Pensioner during the policy term of
10 years, the Purchase Price shall be refunded to the
beneficiary.
c. Maturity Benefit:
On survival of the pensioner to the end of the policy
term of 10 years, Purchase price along with final
pension installment shall be payable.
3. Eligibility Conditions and Other Restrictions:
a) Minimum Entry Age : 60 years (completed)
b) Maximum Entry Age : No limit
c) Policy Term : 10 years
d) Minimum Pension : ` 1,000/- per month
` 3,000/- per quarter
`6,000/-per half-year
`12,000/- per year
e) Maximum Pension : ` 9,250/-per month
` 27,750/-per quarter
` 55,500/-per half-year
` 1,11,000/-per year
Total amount of purchase price under all the policies
under this plan, and all the policies taken under
Pradhan Mantri Vaya Vandana Yojana (with UIN
512G311V01 and UIN: 512G311V02) allowed to a
senior citizen shall not exceed `15 lakhs.
4. Payment of Purchase Price:
The scheme can be purchased by payment of a lump
sum Purchase Price. The pensioner has an option to
choose either the amount of pension or the
Purchase Price.
The minimum and maximum Purchase Price under
different modes of pension will be as under:
Mode Minimum Maximum
of Pension Purchase Price Purchase Price
Yearly ` 1,56,658/- ` 14,49,086/-
Half-yearly ` 1,59,574/- ` 14,76,064/-
Quarterly ` 1,61,074/- ` 14,89,933/-
Monthly ` 1,62,162/- ` 15,00,000/-
The Purchase Price to be charged shall be rounded
off to nearest rupee.
5. Mode of pension payment:
The modes of pension payment are monthly,
quarterly, half-yearly & yearly. The pension payment
shall be through NEFT or Aadhaar Enabled Payment
System. The purchase of the policy under this
Government subsidised scheme requires unique
Aadhaar number validation.
The first installment of pension shall be paid after 1
year, 6 months, 3 months or 1 month from the date
of purchase of the same depending on the mode of
pension payment i.e. yearly, half-yearly, quarterly or
monthly respectively.
6. Sample Pension rates per `1000/- Purchase
Price
The pension rates for `1000/- Purchase Price for
different modes of pension payments are as below:
Yearly: ` 76.60 p.a.
Half-yearly: ` 75.20 p.a.
Quarterly: ` 74.50 p.a.
Monthly: ` 74.00 p.a.
The pension installment shall be rounded off to the
nearest rupee. These rates are age independent.
7. Surrender Value:
The scheme allows premature exit during the policy
term under exceptional circumstances like the
Pensioner requiring money for the treatment of any
critical/terminal illness of self or spouse. The
Surrender Value payable in such cases shall be 98%
of the Purchase Price.
8. Loan:
Loan facility is available after completion of 3 policy
years. The maximum loan that can be granted shall
be 75% of the Purchase Price.
The rate of interest to be charged for loan amount
shall be determined at periodic intervals.
For the loan sanctioned till 30
th
April, 2021,
the applicable interest rate is 9.5% p.a. for
the entire term of the loan.
Loan interest will be recovered from the pension
amount payable under the policy. The Loan interest
will accrue as per the frequency of pension payment
under the policy and it will be due on the due date of
pension. However, the loan outstanding shall be
recovered from the claim proceeds at the time of
exit. The applicable interest rate shall be based on
the method approved by IRDAI.
9. Taxes:
Statutory Taxes, if any, imposed on this plan by the
Government of India or any other constitutional Tax
Authority of India shall be as per the Tax laws and the
rate of tax as applicable from time to time.
The amount of Tax (GST) paid shall not be
considered for the calculation of benefits payable
under the plan.
10. Free Look period:
If a policyholder is not satisfied with the “Terms and
Conditions” of the policy, he/she may return the
policy to the Corporation within 15 days (30 days if
this policy is purchased online) from the date of
receipt of the policy stating the reason of objections.
The amount to be refunded within free look period
shall be the Purchase Price deposited by the
policyholder after deducting the charges for Stamp
duty and pension paid, if any.
SECTION 45 OF THE INSURANCE ACT, 1938:
The provision of Section 45 of the Insurance
Act, 1938 shall be as amended from time to
time. The simplified version of this provision is as
under:
Provisions regarding policy not being called into
question in terms of Section 45 of the Insurance Act,
1938 are as follows:
1. No Policy of Life Insurance shall be called in question
on any ground whatsoever after expiry of 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
2. On the ground of fraud, a policy of Life Insurance
may be called in question within 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
For this, the insurer should communicate in writing to
the insured or legal representative or nominee or
assignees of insured, as applicable, mentioning the
ground and materials on which such decision is
based.
3. Fraud means any of the following acts committed by
insured or by his agent, with the intent to deceive the
insurer or to induce the insurer to issue a life
insurance policy:
a. The suggestion, as a fact of that which is not true
and which the insured does not believe to be
true;
b. The active concealment of a fact by the insured
having knowledge or belief of the fact;
c. Any other act fitted to deceive; and
d. Any such act or omission as the law specifically
declares to be fraudulent.
4. Mere silence is not fraud unless, depending on
circumstances of the case, it is the duty of the insured
or his agent keeping silence to speak or silence is in
itself equivalent to speak.
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5. No Insurer shall repudiate a life insurance Policy on
the ground of Fraud, if the Insured / beneficiary can
prove that the mis-statement was true to the best of
his knowledge and there was no deliberate intention
to suppress the fact or that such mis-statement of or
suppression of material fact are within the knowledge
of the insurer. Onus of disproving is upon the
policyholder, if alive, or beneficiaries.
6. Life insurance Policy can be called in question within 3
years on the ground that any statement of or
suppression of a fact material to expectancy of life of
the insured was incorrectly made in the proposal or
other document basis which policy was issued or
revived or rider issued. For this, the insurer should
communicate in writing to the insured or legal
representative or nominee or assignees of insured, as
applicable, mentioning the ground and materials on
which decision to repudiate the policy of life
insurance is based.
7. In case repudiation is on ground of mis-statement and
not on fraud, the premium collected on policy till the
date of repudiation shall be paid to the insured or
legal representative or nominee or assignees of
insured, within a period of 90 days from the date of
repudiation.
8. Fact shall not be considered material unless it has a
direct bearing on the risk undertaken by the insurer.
The onus is on insurer to show that if the insurer had
been aware of the said fact, no life insurance policy
would have been issued to the insured.
9. The insurer can call for proof of age at any time if he
is entitled to do so and no policy shall be deemed to
be called in question merely because the terms of the
policy are adjusted on subsequent proof of age of life
insured. So, this Section will not be applicable for
questioning age or adjustment based on proof of age
submitted subsequently.
[Disclaimer: This is not a comprehensive list of Section 45
of the Insurance Act, 1938 and only a simplified version
prepared for general information. Policy Holders are
advised to refer to the Section 45 of the Insurance Act,
1938, for complete and accurate details.]
PROHIBITION OF REBATES SECTION 41 OF
INSURANCE ACT, 1938:
1) No person shall allow or offer to allow, either directly
or indirectly, as an inducement to any person to take
out or renew or continue an insurance in respect of
any kind of risk relating to lives or property in India,
any rebate of the whole or part of the commission
payable or any rebate of the premium shown on the
policy, nor shall any person taking out or renewing or
continuing a policy accept any rebate, except such
rebate as may be allowed in accordance with the
published prospectuses or tables of the insurer.
2) Any person making default in complying with the
provisions of this section shall be liable for a penalty
which may extend to ten lakh rupees.
Note: “Conditions apply” for which please refer to the
Policy document or contact our nearest Branch Office.
This product brochure gives only salient features of
the plan. For further details please refer to the Policy
document on our website www.licindia.in or contact
our nearest Branch Office.
To purchase the policy online please log on to
www.licindia.in
BEWARE OF SPURIOUS PHONE CALLS AND
FICTITIOUS/FRAUDULENT OFFERS
IRDAI is not involved in activities like selling insurance
policies, announcing bonus or investment of premiums.
Public receiving such phone calls are requested to lodge a
police complaint.
Registered Office:
Life Insurance Corporation of India
Central Office, Yogakshema,
Jeevan Bima Marg,
Mumbai - 400021.
Website: www.licindia.in
Registration Number : 512
1. Introduction:
The Government of India has introduced Pradhan
Mantri Vaya Vandana Yojana (Modified-2020), with
modified rate of pension under this plan and extended
the period of sale of this plan for a further period of
three years from Financial Year 2020-21 till 31
st
March,
2023. As per the terms and conditions under this plan,
guaranteed rates of pension for policies sold during a
year will be reviewed and decided at the beginning of
each year by the Ministry of Finance, Government of
India. For the first financial year i.e. upto 31
st
March
2021, the Scheme will provide an assured pension of
7.40% p.a. payable monthly.
LIC of India is solely authorised to operate this
scheme.
This scheme can be purchased offline as well as
online. To Purchase this scheme online please log on
to our website www.licindia.in.
2. Benefits
a. Pension Payment :
On survival of the Pensioner during the policy term of
10 years, pension in arrears (at the end of each
period as per mode chosen) shall be payable.
b. Death Benefit:
On death of the Pensioner during the policy term of
10 years, the Purchase Price shall be refunded to the
beneficiary.
c. Maturity Benefit:
On survival of the pensioner to the end of the policy
term of 10 years, Purchase price along with final
pension installment shall be payable.
3. Eligibility Conditions and Other Restrictions:
a) Minimum Entry Age : 60 years (completed)
b) Maximum Entry Age : No limit
c) Policy Term : 10 years
d) Minimum Pension : ` 1,000/- per month
` 3,000/- per quarter
`6,000/-per half-year
`12,000/- per year
e) Maximum Pension : ` 9,250/-per month
` 27,750/-per quarter
` 55,500/-per half-year
` 1,11,000/-per year
Total amount of purchase price under all the policies
under this plan, and all the policies taken under
Pradhan Mantri Vaya Vandana Yojana (with UIN
512G311V01 and UIN: 512G311V02) allowed to a
senior citizen shall not exceed `15 lakhs.
4. Payment of Purchase Price:
The scheme can be purchased by payment of a lump
sum Purchase Price. The pensioner has an option to
choose either the amount of pension or the
Purchase Price.
The minimum and maximum Purchase Price under
different modes of pension will be as under:
Mode Minimum Maximum
of Pension Purchase Price Purchase Price
Yearly ` 1,56,658/- ` 14,49,086/-
Half-yearly ` 1,59,574/- ` 14,76,064/-
Quarterly ` 1,61,074/- ` 14,89,933/-
Monthly ` 1,62,162/- ` 15,00,000/-
The Purchase Price to be charged shall be rounded
off to nearest rupee.
5. Mode of pension payment:
The modes of pension payment are monthly,
quarterly, half-yearly & yearly. The pension payment
shall be through NEFT or Aadhaar Enabled Payment
System. The purchase of the policy under this
Government subsidised scheme requires unique
Aadhaar number validation.
The first installment of pension shall be paid after 1
year, 6 months, 3 months or 1 month from the date
of purchase of the same depending on the mode of
pension payment i.e. yearly, half-yearly, quarterly or
monthly respectively.
6. Sample Pension rates per `1000/- Purchase
Price
The pension rates for `1000/- Purchase Price for
different modes of pension payments are as below:
Yearly: ` 76.60 p.a.
Half-yearly: ` 75.20 p.a.
Quarterly: ` 74.50 p.a.
Monthly: ` 74.00 p.a.
The pension installment shall be rounded off to the
nearest rupee. These rates are age independent.
7. Surrender Value:
The scheme allows premature exit during the policy
term under exceptional circumstances like the
Pensioner requiring money for the treatment of any
critical/terminal illness of self or spouse. The
Surrender Value payable in such cases shall be 98%
of the Purchase Price.
8. Loan:
Loan facility is available after completion of 3 policy
years. The maximum loan that can be granted shall
be 75% of the Purchase Price.
The rate of interest to be charged for loan amount
shall be determined at periodic intervals.
For the loan sanctioned till 30
th
April, 2021,
the applicable interest rate is 9.5% p.a. for
the entire term of the loan.
Loan interest will be recovered from the pension
amount payable under the policy. The Loan interest
will accrue as per the frequency of pension payment
under the policy and it will be due on the due date of
pension. However, the loan outstanding shall be
recovered from the claim proceeds at the time of
exit. The applicable interest rate shall be based on
the method approved by IRDAI.
9. Taxes:
Statutory Taxes, if any, imposed on this plan by the
Government of India or any other constitutional Tax
Authority of India shall be as per the Tax laws and the
rate of tax as applicable from time to time.
The amount of Tax (GST) paid shall not be
considered for the calculation of benefits payable
under the plan.
10. Free Look period:
If a policyholder is not satisfied with the “Terms and
Conditions” of the policy, he/she may return the
policy to the Corporation within 15 days (30 days if
this policy is purchased online) from the date of
receipt of the policy stating the reason of objections.
The amount to be refunded within free look period
shall be the Purchase Price deposited by the
policyholder after deducting the charges for Stamp
duty and pension paid, if any.
SECTION 45 OF THE INSURANCE ACT, 1938:
The provision of Section 45 of the Insurance
Act, 1938 shall be as amended from time to
time. The simplified version of this provision is as
under:
Provisions regarding policy not being called into
question in terms of Section 45 of the Insurance Act,
1938 are as follows:
1. No Policy of Life Insurance shall be called in question
on any ground whatsoever after expiry of 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
2. On the ground of fraud, a policy of Life Insurance
may be called in question within 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
For this, the insurer should communicate in writing to
the insured or legal representative or nominee or
assignees of insured, as applicable, mentioning the
ground and materials on which such decision is
based.
3. Fraud means any of the following acts committed by
insured or by his agent, with the intent to deceive the
insurer or to induce the insurer to issue a life
insurance policy:
a. The suggestion, as a fact of that which is not true
and which the insured does not believe to be
true;
b. The active concealment of a fact by the insured
having knowledge or belief of the fact;
c. Any other act fitted to deceive; and
d. Any such act or omission as the law specifically
declares to be fraudulent.
4. Mere silence is not fraud unless, depending on
circumstances of the case, it is the duty of the insured
or his agent keeping silence to speak or silence is in
itself equivalent to speak.
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