Sales Brochure Pradhan Mantri Vaya Vandana Yojana

Shri Narendra ModiHon. Prime MinisterantriMnahdarPjanaoYanadnaVaya V020)2deifidoM(G336V016 UIN :512Plan No: 85thly pensionnum for monnum)7.40% per anpe7.66% r an(equivalent toFor the welfare of senior citizens of our country(The scheme is available up to 31st March 2023)Regd. Off.: Life Insurance Corporation of India,Yogakshema, Central Office, J. B. Marg, Mumbai 400 021.Registration No.: 512Sales 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)121

Pradhan Mantri VayaVandana Yojana (Modified-2020)(A Non-Linked, Non-Participating, Pension Schemesubsidized by the Government of India)(UIN: 512G336V01)3. Eligibility Conditions and Other Restrictions:a) Minimum Entry Age : 60 years (completed)b) Maximum Entry Age : No limitc) Policy Term: 10 yearsd) Minimum Pension: 1,000/- per month1. Introduction: 3,000/- per quarterThe Government of India has introduced PradhanMantri Vaya Vandana Yojana (Modified-2020), withmodified rate of pension under this plan and extendedthe period of sale of this plan for a further period ofthree years from Financial Year 2020-21 till 31st March,2023. As per the terms and conditions under this plan,guaranteed rates of pension for policies sold during ayear will be reviewed and decided at the beginning ofeach year by the Ministry of Finance, Government ofIndia. For the first financial year i.e. upto 31st March2021, the Scheme will provide an assured pension of7.40% p.a. payable monthly.LIC of India is solely authorised to operate thisscheme.This scheme can be purchased offline as well asonline. To Purchase this scheme online please log onto our website www.licindia.in.2. Benefitsa.Pension Payment :On survival of the Pensioner during the policy term of10 years, pension in arrears (at the end of eachperiod as per mode chosen) shall be payable. 6,000/-per half-year 12,000/- per yeare) Maximum Pension: 9,250/-per month 27,750/-per quarter 55,500/-per half-year 1,11,000/-per yearTotal amount of purchase price under all the policiesunder this plan, and all the policies taken underPradhan Mantri Vaya Vandana Yojana (with UIN512G311V01 and UIN: 512G311V02) allowed to asenior citizen shall not exceed 15 lakhs.4. Payment of Purchase Price:The scheme can be purchased by payment of a lumpsum Purchase Price. The pensioner has an option tochoose either the amount of pension or thePurchase Price.The minimum and maximum Purchase Price underdifferent modes of pension will be as under:Modeof PensionMinimumPurchase PriceMaximumPurchase PriceYearly 1,56,658/- 14,49,086/-On death of the Pensioner during the policy term of10 years, the Purchase Price shall be refunded to thebeneficiary.Half-yearly 1,59,574/- 14,76,064/-Quarterly 1,61,074/- 14,89,933/-c.Monthly 1,62,162/- 15,00,000/-b.Death Benefit:Maturity Benefit:On survival of the pensioner to the end of the policyterm of 10 years, Purchase price along with finalpension installment shall be payable.2The Purchase Price to be charged shall be roundedoff to nearest rupee.3

5. Mode of pension payment:The modes of pension payment are monthly,quarterly, half-yearly & yearly. The pension paymentshall be through NEFT or Aadhaar Enabled PaymentSystem. The purchase of the policy under thisGovernment subsidised scheme requires uniqueAadhaar number validation.The first installment of pension shall be paid after 1year, 6 months, 3 months or 1 month from the dateof purchase of the same depending on the mode ofpension payment i.e. yearly, half-yearly, quarterly ormonthly respectively.6. Sample Pension rates per 1000/- PurchasePriceThe pension rates for 1000/- Purchase Price fordifferent 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 thenearest rupee. These rates are age independent.7. Surrender Value:The scheme allows premature exit during the policyterm under exceptional circumstances like thePensioner requiring money for the treatment of anycritical/terminal illness of self or spouse. TheSurrender Value payable in such cases shall be 98%of the Purchase Price.8. Loan:Loan facility is available after completion of 3 policyyears. The maximum loan that can be granted shallbe 75% of the Purchase Price.The rate of interest to be charged for loan amountshall be determined at periodic intervals.4For the loan sanctioned till 30th April, 2021,the applicable interest rate is 9.5% p.a. forthe entire term of the loan.Loan interest will be recovered from the pensionamount payable under the policy. The Loan interestwill accrue as per the frequency of pension paymentunder the policy and it will be due on the due date ofpension. However, the loan outstanding shall berecovered from the claim proceeds at the time ofexit. The applicable interest rate shall be based onthe method approved by IRDAI.9. Taxes:Statutory Taxes, if any, imposed on this plan by theGovernment of India or any other constitutional TaxAuthority of India shall be as per the Tax laws and therate of tax as applicable from time to time.The amount of Tax (GST) paid shall not beconsidered for the calculation of benefits payableunder the plan.10. Free Look period:If a policyholder is not satisfied with the “Terms andConditions” of the policy, he/she may return thepolicy to the Corporation within 15 days (30 days ifthis policy is purchased online) from the date ofreceipt of the policy stating the reason of objections.The amount to be refunded within free look periodshall be the Purchase Price deposited by thepolicyholder after deducting the charges for Stampduty and pension paid, if any.SECTION 45 OF THE INSURANCE ACT, 1938:The provision of Section 45 of the InsuranceAct, 1938 shall be as amended from time totime. The simplified version of this provision is asunder:Provisions regarding policy not being called intoquestion in terms of Section 45 of the Insurance Act,1938 are as follows:5

1. No Policy of Life Insurance shall be called in questionon any ground whatsoever after expiry of 3 years froma. the date of issuance of policy orb. the date of commencement of risk orc. the date of revival of policy ord. the date of rider to the policywhichever is later.2. On the ground of fraud, a policy of Life Insurancemay be called in question within 3 years froma. the date of issuance of policy orb. the date of commencement of risk orc. the date of revival of policy ord. the date of rider to the policywhichever is later.For this, the insurer should communicate in writing tothe insured or legal representative or nominee orassignees of insured, as applicable, mentioning theground and materials on which such decision isbased.3. Fraud means any of the following acts committed byinsured or by his agent, with the intent to deceive theinsurer or to induce the insurer to issue a lifeinsurance policy:a. The suggestion, as a fact of that which is not trueand which the insured does not believe to betrue;b. The active concealment of a fact by the insuredhaving knowledge or belief of the fact;c. Any other act fitted to deceive; andd. Any such act or omission as the law specificallydeclares to be fraudulent.4. Mere silence is not fraud unless, depending oncircumstances of the case, it is the duty of the insuredor his agent keeping silence to speak or silence is initself equivalent to speak.65. No Insurer shall repudiate a life insurance Policy onthe ground of Fraud, if the Insured / beneficiary canprove that the mis-statement was true to the best ofhis knowledge and there was no deliberate intentionto suppress the fact or that such mis-statement of orsuppression of material fact are within the knowledgeof the insurer. Onus of disproving is upon thepolicyholder, if alive, or beneficiaries.6. Life insurance Policy can be called in question within 3years on the ground that any statement of orsuppression of a fact material to expectancy of life ofthe insured was incorrectly made in the proposal orother document basis which policy was issued orrevived or rider issued. For this, the insurer shouldcommunicate in writing to the insured or legalrepresentative or nominee or assignees of insured, asapplicable, mentioning the ground and materials onwhich decision to repudiate the policy of lifeinsurance is based.7. In case repudiation is on ground of mis-statement andnot on fraud, the premium collected on policy till thedate of repudiation shall be paid to the insured orlegal representative or nominee or assignees ofinsured, within a period of 90 days from the date ofrepudiation.8. Fact shall not be considered material unless it has adirect bearing on the risk undertaken by the insurer.The onus is on insurer to show that if the insurer hadbeen aware of the said fact, no life insurance policywould have been issued to the insured.9. The insurer can call for proof of age at any time if heis entitled to do so and no policy shall be deemed tobe called in question merely because the terms of thepolicy are adjusted on subsequent proof of age of lifeinsured. So, this Section will not be applicable forquestioning age or adjustment based on proof of agesubmitted subsequently.[Disclaimer: This is not a comprehensive list of Section 45of the Insurance Act, 1938 and only a simplified versionprepared for general information. Policy Holders areadvised to refer to the Section 45 of the Insurance Act,1938, for complete and accurate details.]7

PROHIBITION OF REBATES SECTION 41 OFINSURANCE ACT, 1938:BEWARE OF SPURIOUS PHONE CALLS ANDFICTITIOUS/FRAUDULENT OFFERS1) No person shall allow or offer to allow, either directlyor indirectly, as an inducement to any person to takeout or renew or continue an insurance in respect ofany kind of risk relating to lives or property in India,any rebate of the whole or part of the commissionpayable or any rebate of the premium shown on thepolicy, nor shall any person taking out or renewing orcontinuing a policy accept any rebate, except suchrebate as may be allowed in accordance with thepublished prospectuses or tables of the insurer.IRDAI is not involved in activities like selling insurancepolicies, announcing bonus or investment of premiums.Public receiving such phone calls are requested to lodge apolice complaint.2) Any person making default in complying with theprovisions of this section shall be liable for a penaltywhich may extend to ten lakh rupees.Registered Office:Life Insurance Corporation of IndiaCentral Office, Yogakshema,Jeevan Bima Marg,Mumbai - 400021.Website: www.licindia.inRegistration Number : 512Note: “Conditions apply” for which please refer to thePolicy document or contact our nearest Branch Office.This product brochure gives only salient features ofthe plan. For further details please refer to the Policydocument on our website www.licindia.in or contactour nearest Branch Office.To purchase the policy online please log on towww.licindia.in89

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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