Protecting the interests of the insured is one of the key objectives of IRDAI. That is why while playing the role of regulator in the insurance sector, IRDAI provides guidance to insurance companies. A recent example of this is a simple term insurance plan named “Saral Jeevan Bima”. IRDAI instructed all insurance companies to make it available to the public from January 1, 2021.
The importance of term insurance has underlined in Covid-19 pandemic. And people are increasingly running to insurance which offers strong protection at low premiums. Many term insurance plans of various companies are also available in the market today. But, there are so many differences in their terms, conditions, benefits. So interested customers get confuse when choosing the right plan.
Many companies require an annual income of at least Rs 3 lakh to Rs 5 lakh for term insurance. As a result, more than 90% people are deprive of this scheme. That is why IRDAI has introduced a scheme ‘Saral Jeevan Bima’. This scheme is easily accessible to all, with the same terms, provisions and benefits. Due to this, Misconduct in insurance sales will get reduce, trust between the insured & companies get increase . And of course, the controversy at the time of the claim will reduce.
It is mandatory for all life insurance companies to make this insurance plan available to customers from January 1, 2021.
Highlights of this insurance
- ‘Saral Jeevan Bima’ is a pure term insurance plan in which the sum assured will be paid to the nominee if the insured dies before the expiry of the policy due to any reason. However, there is no ‘claim’ for suicide.
- It will not have maturity benefit provision.
- Men and women of 18 and 65 year old are eligible.
- Sum Assured minimum Rs. 5 lakhs, maximum Rs. 25 lakhs. Insurance companies have the option to offer a higher amount without changing the terms and conditions of the policy.
- There is also an option to pay premium (Limited Payment) annually, semi-annually, monthly, lump sum or within five or ten years.
- The waiting period will be 45 days from the registration of the policy. During this period, you can get a claim only if you die by accident.
- Benefits like Surrender Value, Policy Loan, Policy Bonus will not be available.
- Voluntary riders available for accidental death and permanent disability.
- There will be a grace period of 30 days for annual & half year installments, 15 Days for monthly installment system.
This step by IRDAI is certainly beneficial of individuals.