PART A

Welcome to Max Life Insurance

Date __-___ -201_

To <Name of the Policyholder>
<Address 1>
<Address 2>
<City> - <Pin Code>
<State>
G. O. Name: <G O Name>
Policy no.: <Policy number>
Telephone: <Telephone number>
Email id: <Email address>

Welcome Dear <Name of the Policyholder>,

Thank you for opting for <Policy name>.

What to do in On examination of the Policy, if you notice any mistake or error, proceed as follows:
case of errors 1. Contact our customer helpdesk or your agent immediately at the details mentioned below.
2. Return the Policy to us for rectifying the same.

Cancelling the In case you are not completely satisfied with the Policy, you have the option to cancel it by returning the
Policy original copy with a written request, stating the objections/reasons for such disagreement, to us within free
look period of fifteen (15) days, or thirty (30) days (for policies sourced through distance marketing modes) of
receiving the document.
Result: Upon return, the Policy will terminate forthwith and all rights, benefits and interests under the Policy will
cease immediately. We will refund only the Premiums received by us after deducting the proportionate risk
Premium for the period of cover, charges of stamp duty paid and the expenses incurred on medical examination
of the Life Insured, if any.

Long term We are committed to giving you honest advice and offering you long-term savings, protection and retirement
protection solutions backed by the highest standards of customer service. We will be delighted to offer you any assistance
or clarification you may require about your policy or claim related services at the address mentioned below.
We look forward to being your partner for life.

Yours Sincerely,
Max Life Insurance Co. Ltd.

Rajesh Sud
CEO & Managing Director

Agent Name:
Ph. no.:
Address:
Max Life Insurance Company Limited
Plot No. 90A, Sector 18, Gurgaon, 122015, Haryana, India
Phone: 4219090 Fax: 4159397 (From Delhi and other cities: 0124) Customer Helpline: 1800 200 5577
Regd Office: 419, Bhai Mohan Singh Nagar, Railmajra, Tehsil Balachaur, District Nawanshahr, Punjab -144 533
Visit Us at: www.maxlifeinsurance.com E-mail: [email protected]
IRDAI Registration No: 104
Corporate Identity Number: U74899PB2000PLC045626

Page 1 of 18
 MaxLifeInsuranceCompanyLimited
Regd. Office: 419, Bhai Mohan Singh Nagar, Railmajra, Tehsil Balachaur, District Nawanshahr, Punjab -144 533

Max Life Life Gain Premier

A Traditional Participating Endowment Insurance Plan

UIN – 104N079V03

Max Life Insurance Company Limited has entered into this contract of insurance on the basis of the Proposal Form together with the Premium
deposit, statements, report or other documents and declarations received from the Proposer for effecting a life insurance contract on the life of the
person named in the Schedule hereto.
The Company agrees to pay the benefits under this Policy on the happening of the insured event, while this Policy is in force subject to the terms and
conditions stated herein.
On examination of this Policy, if You notice any mistake or error, this Policy should be returned to Us for rectifying the same.

Max Life Insurance Company Limited

INSURANCE

Page 2 of 18
 SCHEDULE

Base Policy – Max Life Life Gain Premier Type of Policy –Traditional Participating Endowment Insurance Plan

UIN - 104N079V03 Office –

Policy No./ Proposal No.: Client ID:

Date of Proposal:

Policyholder/Proposer: Age Admitted: Yes/No

PAN: Gender:

Identification Source & I.D No.: Tel No./Mobile No.:

Relationship with Life Insured: Email:

Date of Birth:

Address:

Life Insured: Age Admitted: Yes/No

Identification Source & ID No.: Gender:

Date of Birth:

Age:

Nominee(s): Appointee (if nominee is minor):

Date of Birth:

Effective Date: Premium Payment Mode:

Premium Payment Method: Bill Draw Date:

Bonus option Bank Account Number:

Agent’s name/ Broker’s name: Agent’s code/ Broker’s code:

Email: Agent’s/ Broker’s License No.:

Address: Mobile/ Landline Telephone Number:

Page 3 of 18
 List of Maturity Insured Event Guaranteed Guaranteed Policy Premium Annual Extra *Premium Service Due Date
Coverage Date Maturity Death Term Payment Premium Premium (INR) tax When
Sum Benefit on Term (INR) (INR) (INR) Premium is
Assured the Payable/ Date
(INR) Effective When the Last
Date Premium is
(INR) Payable
Policy: Dd/mm/yy Maturity or
Max Life death of the
Life Gain Life Insured
Premier

Rider(s) Dd/mm/yy Refer to the

terms and
conditions as
attached.
Annualised Premium:
Total Premium including rider premium:
Total service tax:
Total Premium payable on the due dates along with service tax:
*Please note that the Premium is (Annual Premium plus Extra Premium) multiplied by the applicable Modal Factor.
NOTE: On examination of this Policy, if You notice any mistake or error, this Policy should be returned to Us for rectifying the
same

Page 4 of 18
1. DEFINITIONS AND INTERPRETATION
1.1. Definitions
The words and phrases listed below shall have the meanings attributed to them wherever they appear in this Policy unless the context
otherwise requires:
i. "Actuarial Valuation Surplus" means the surplus arising in the Participating life policyholders' fund, established by
Us for Participating life insurance policies and calculated by the Appointed Actuary in accordance with the standards or
guidance issued by the Institute of Actuaries of India and in accordance with the Insurance Regulatory and Development
Authority (Distribution of Surplus) Regulations, 2002;
ii. "Age" means the Life Insured's age on last birthday as on the Effective Date or on the previous Policy Anniversary, as the
case may be;
iii. "Annual Premium" means an amount specified in the Schedule, which is payable under the annual Premium payment
mode under this Policy, excluding Extra Premium, if any and excluding service tax or any other taxes, cesses or levies, if any;
iv. "Annualised Premium" means the sum total of Annual Premium and Extra Premium, if any, as specified in the Schedule;
v. "Authority" means the Insurance Regulatory and Development Authority of India established under the Insurance
Regulatory and Development Authority Act, 1999 or any other regulatory authority regulating insurance companies in India;
vi. "Cash Bonus" means a share in the Actuarial Valuation Surplus determined by Our Appointed Actuary, to be
communicated to You, based on the declaration made by Us, which can be utilized in the manner specified under Section
3.5.1;
vii. "Company", "We", "Us", "Our", "Insurer" means Max Life Insurance Company Limited;
viii. "Diagnosis" or "Diagnosed" means the definitive diagnosis made by a Medical Practitioner, based upon radiological,
clinical, and histological or laboratory evidence acceptable to Us provided the same is acceptable and concurred by Our
appointed Medical Practitioner. In the event of any doubt regarding the appropriateness or correctness of the Diagnosis, We
will have the right to call for an examination of the Life Insured and/or the evidence used in arriving at such Diagnosis, by an
independent expert selected by Us. The opinion of such an expert as to such Diagnosis shall be binding on both You and Us;
ix. "Effective Date" means the date as specified in the Schedule, on which the insurance coverage under this Policy commences;
x.
INSURANCE
"Extra Premium" means an additional amount charged by Us, as per Our board approved underwriting policy, which is
determined on the basis of disclosures made by You in the Proposal Form or on the basis of any other information
received by Us including through medical examinations of the Life Insured in relation to this Policy;
xi. "Guaranteed Death Benefit" means an amount which will be highest of the following:
a. 11 (Eleven) times the Annualised Premium; or
b. 105% (One Hundred Five percent) of all the Premiums received from You till the date of death of the Life Insured; or
c. Guaranteed Maturity Sum Assured.
xii. "Guaranteed Maturity Sum Assured" means a guaranteed amount as specified in the Schedule, payable on the
Maturity Date, if the Life Insured has survived on such date and all due Premiums have been received by Us;
xiii. "Guaranteed Surrender Value" means the minimum surrender value computed in accordance with Section 8.4, which is guaranteed
by Us;
xiv. "Insurance Act" means the Insurance Act, 1938;
xv. "Life Insured" means the person named in the Schedule, on whose life this Policy is effected;
xvi. "Maturity Date" means the date specified in the Schedule, on which the Policy Term expires and the maturity benefit as specified
in Section 3.1 or Section 3.4.2(i), as the case may be, becomes payable;
xvii. "Medical Practitioner" means a person who holds a valid registration from the medical council of any State of India or
Medical Council of India or any other such body or Council for Indian Medicine or for homeopathy set up by the
Government of India or by a State Government and is thereby entitled to practice medicine within its jurisdiction and is
acting within the scope and jurisdiction of his license, provided such Medical Practitioner is not the Life Insured covered
under this Policy or the Policyholder or is not a spouse, lineal relative of the Life Insured and/or the Policyholder or a
Medical Practitioner employed by the Policyholder/Life Insured;
xviii. "Modal Factor" means the applicable factor used by Us for determining the Premium payable by You under this Policy, if You have
opted to pay the Premium in any mode other than annual Premium payment mode. The Modal Factor for semi-annual Premium
payment mode is 0.52, for quarterly Premium payment mode is 0.265 and for monthly Premium payment mode is 0.09;
xix. "Nominee" means the person named by You and registered with Us in accordance with Section 10.6, who is authorized to
receive the death benefit under this Policy, on the death of the Life Insured;
xx. "Paid Up Additions" means the additional sum assured purchased from the Cash Bonus(es) declared under this Policy at rates
approved by the Authority, which are not guaranteed;
xxi. "Participating" means participating in the Actuarial Valuation Surplus of the participating life policyholders' fund;
xxii. "Policy" means this Max Life Life Gain Premier plan, the operation, regulation and management of which is governed by the
documents comprising these terms and conditions, the Proposal Form, the Schedule and any additional information/document(s)
provided to Us in respect of the Proposal Form along with any written instructions from You subject to Our acceptance of the same;
xxiii. "Policy Anniversary" means the annual anniversary of the Effective Date;
xxiv. "Policyholder", "Proposer", "You", "Your" means the person named in the Schedule who has taken this Policy from Us;

Page 5 of 18
xxv. "Policy Term" means the term of this Policy as specified in the Schedule;
xxvi. "Policy Year" means a period of 12 (Twelve) months commencing from the Effective Date and every Policy Anniversary thereafter;
xxvii. "Premium" means an amount as specified in the Schedule, payable by You, by the due dates and in the manner specified in
the Schedule, to secure the benefits under this Policy, excluding service tax or any other taxes, cesses or levies, if any;
xxviii. "Premium Payment Term" means the term as specified in the Schedule, during which the Premiums are payable by You to Us
under this Policy;
xxix. ''Proposal Form" means the form filled in and completed by You, giving full particulars, for the purpose of obtaining
insurance coverage under this Policy;
xxx. "Reduced Paid Up Death Benefit" means an amount equal to the Guaranteed Death Benefit multiplied by the resultant of the total
Premiums less Extra Premium (if any) received by Us till the date of the death of the Life Insured divided by the total Premiums less
Extra Premium (if any) payable by You;
xxxi. "Reduced Paid Up Maturity Sum Assured" means an amount equal to the Guaranteed Maturity Sum Assured multiplied by
the resultant of the total Premiums less Extra Premium (if any) received by Us divided by total Premiums less Extra Premium (if any)
payable by You;
xxxii. ''Reduced Paid Up Mode" means the Policy with reduced paid up benefits as specified under Section 3.4;
xxxiii. "Schedule" means the schedule and any endorsements attached to and forming part of this Policy and if an updated
Schedule is issued, then, the Schedule which is latest in time;
xxxiv. "Special Surrender Value" means the special surrender value computed in accordance with Section 8.5;
xxxv. ''Special Surrender Value Factors" are factors determined by Us in consultation with and approved by the Authority to
compute the Special Surrender Value. These factors can be revised by Us on the basis of Our experience from time to time in
consultation with and approval of the Authority;
xxxvi. "Surrender Value" means an amount payable as per Section 8 on surrender of this Policy, which will be the higher of the
Guaranteed Surrender Value or the Special Surrender Value;
xxxvii. ''Terminal Bonus" means the bonus payable by Us in accordance with Section 3.5.2; and
xxxviii. ''Terminal Illness" means the Life Insured being Diagnosed with a disease which, in the opinion of a Medical Practitioner and
on approval of such an opinion by Our appointed Medical Practitioner, is likely to result in the death of the Life Insured within 6
(Six) months from the date of such certification by a Medical Practitioner.
1.2. Interpretation
i. References to the masculine or the singular will include references to the feminine and the plural, and vice versa.
ii. References to any statute or statutory enactment shall include re-enactment or amendment to the same.
INSURANCE
iii. Section headings are for sake of reference only and have no interpretive value.
iv. Reference to days, unless context otherwise requires, means calendar days only.
2. ELIGIBILITY
2.1. This Policy has been written on a single life basis.
2.2. The minimum Age of the Life Insured on the Effective Date should be 18 (Eighteen) years.
2.3. The maximum Age of the Life Insured on the Effective Date should be:
i. 55 (Fifty Five) years for a Policy where the Policy Term is of 15 (Fifteen) years and 20 (Twenty) years; and
ii. 50 (Fifty) years for a Policy where the Policy Term is of 25 (Twenty Five) years.
2.4. The maximum Age of the Life Insured on the Maturity Date cannot exceed:
i. 70 (Seventy) years for a Policy where the Policy Term is of 15 (Fifteen) years; and
ii. 75 (Seventy Five) years for the Policy where the Policy Term is of 20 (Twenty) years and 25 (Twenty Five) years.
3. BENEFITS
3.1. Maturity Benefit
Subject to Sections 3.4, 4, 5, 10.3, 10.4 and 10.10 below, if the Life Insured has survived on the Maturity Date and We
have received all the due Premiums, then, We shall pay the sum total of the following, on the Maturity Date, to a person
specified under Section 4.1:
i. Guaranteed Maturity Sum Assured;
ii. accrued Paid Up Additions, if any; and
iii. Terminal Bonus, if any.
3.2. Death Benefit
3.2.1. Subject to Sections 3.4, 4, 5, 10.3, 10.4 and 10.10 below and provided the insurance coverage under this Policy is in
force, then, upon the death of the Life Insured during the Policy Term, We shall pay the sum total of the following, to a
person specified under Section 4.1:
i. Guaranteed Death Benefit;
ii. accrued Paid Up Additions, if any; and
iii. Terminal Bonus, if any.

Page 6 of 18
 3.3. Terminal Illness Benefit
3.3.1. Subject to Sections 3.4, 4, 5, 10.3, 10.4 and 10.10 below, if the Life Insured is Diagnosed with Terminal Illness at any
time during the Policy Term, We shall on receipt of Your written request, pay the following benefits to the Life Insured:
i. Up to 50% (Fifty percent) of the Guaranteed Maturity Sum Assured or the Reduced Paid Up Maturity Sum Assured,
as the case may be, on the date of intimation, subject to a maximum cumulative amount of INR 10,00,000 (Rupees Ten
Lakhs) under all Our policies issued with respect to the Life Insured which provide for Terminal Illness benefit, on
the approval of Terminal Illness claim filed by You. Upon payment of the Terminal Illness benefit, the benefits under all
policies then in force, which provide for the Terminal Illness benefit, will be proportionately reduced and will be
payable in accordance with the terms of the respective policies.
ii. The maturity benefit or the death benefit or the Surrender Value, as the case may be, will be reduced by the amount
of Terminal Illness benefit already paid and the remaining maturity benefit or remaining death benefit or the
remaining Surrender Value, as the case may be, will be payable, subject to the terms of this Policy.
3.3.2. If the Life Insured is alive during the Policy Term and the Policy is not under Reduced Paid Up Mode, You shall continue
to pay all the due Premiums.
3.3.3. The bonus(es), if any, will be declared by Us on the basis of the original Guaranteed Maturity Sum Assured.
3.3.4. Terminal Illness benefit can be availed under this Policy only once during the Policy Term.
3.4. Reduced Paid Up Benefit
3.4.1. If this Policy has acquired a Surrender Value as per Section 8 below, then, in the event of non-payment of the due
Premiums by You to Us, this Policy will not lapse and will continue with reduced paid up benefits in accordance with this
Section 3.4. A Policy under the Reduced Paid Up Mode will thereafter be free from all liabilities of payment of the future
Premiums to Us.
3.4.2. If this Policy is under Reduced Paid Up Mode, then, the benefits payable shall be as follows:
i. Maturity Benefit
Subject to Sections 4, 5, 10.3 and 10.4 below, if the Life Insured has survived on the Maturity Date, then, We shall pay
the sum total of the following,to a person specified under Section 4.1 on the Maturity Date:
a. Reduced Paid Up Maturity Sum Assured; and
b. accrued Paid Up Additions, if any.
ii. Death Benefit
Subject to Sections 4, 5, 10.3 and 10.4 below, upon the death of the Life Insured during the Policy Term, We shall pay
the sum total of the following, to a person specified under Section 4.1:
a. Reduced Paid Up Death Benefit; and
b. accrued Paid Up Additions, if any.
iii. If this Policy is under the Reduced Paid Up Mode:
a. the Terminal Illness benefit payable, if any, will be computed on the basis of the Reduced Paid Up Maturity Sum Assured;
b. all rider benefits will cease under this Policy;
c. You shall not be entitled to withdraw the cash value of the Paid Up Additions;

3.5. Bonus(es)
Under this Policy during the Policy Term, You shall be eligible to receive the following bonus(es), if any, declared by Us:
i. Cash Bonus; and
ii. Terminal Bonus.
3.5.1. Cash Bonus
i. Under this Policy, We may declare a Cash Bonus on the Guaranteed Maturity Sum Assured and on the accrued Paid Up
Additions, if any, based on the Actuarial Valuation Surplus.
ii. The Cash Bonus(es) on the Guaranteed Maturity Sum Assured shall be payable from the end of 2nd (Second) Policy Year
(i.e. from the end of 24th Policy month) onwards and thereafter at the end of every subsequent Policy Year as and when
declared by Us, till the date of death of the Life Insured or the date of termination of the Policy in accordance with Section
11, whichever is earlier. The Cash Bonus(es) on the accrued Paid Up Additions, if any, shall be payable from the end of 3rd
(Third) Policy Year (i.e. from the end of 36th Policy month) onwards and thereafter at the end of every subsequent Policy
Year as and when declared by Us, till the date INSURANCE
of death of the Life Insured or the date of termination of the Policy in
accordance with Section 11, whichever is earlier. We may or may not declare the Cash Bonus(es) as the same are not
guaranteed.
iii. You can utilize the Cash Bonus as per one of the following options chosen by You in the Proposal Form or subsequently in
accordance with Section 3.5.1(iv):
a. Paid in Cash
You have an option to take the Cash Bonus as and when declared by Us, by cheque or by any other means as determined
by Us.

Page 7 of 18
 b. Premium Offset
You have an option to offset the Premium payable under this Policy by the Cash Bonus payable to You by Us, if any. In
the event the Cash Bonus exceeds the Premium payable by You to Us under this Policy, We shall pay such balance to
You. However, if the Cash Bonus payable to You is not sufficient to offset the Premium payable by You to Us under
this Policy, then, You shall pay the balance Premium to Us.
c. Purchase Paid Up Additions
1) You have an option to utilize the Cash Bonus(es) declared by Us, if any, as premium for purchasing Paid Up
Additions. Such Paid Up Additions shall participate in the future Cash Bonus(es) as and when declared by
Us and shall mature along with this Policy. The Cash Bonus(es) will be declared on the Guaranteed Maturity
Sum Assured and on the accrued Paid Up Additions, if any which were purchased and have not been
withdrawn by You in the past.
2) In the event of death of the Life Insured prior to the Maturity Date or if the Life Insured survives on the
Maturity Date, We shall pay Paid Up Additions accrued till such date, if any, to a person specified in Section 4.1.
In case of surrender of this Policy, We shall only pay the cash value of the Paid Up Additions to You.
3) We reserve the right to change/ amend the rates to buy Paid Up Additions, as such rates are not guaranteed
and may be revised on the basis of Our actual experience, subject to the prior approval of the Authority.
4) You have an option to withdraw the cash value of accrued Paid Up Additions, partially or in full subject to a
minimum withdrawal amount of INR 5,000 (Rupees Five Thousand). The cash value of the Paid Up Additions
will be determined using the Paid Up Addition purchase rates which are not guaranteed and can be revised
by Us, subject to prior approval of the Authority. However, such withdrawal will not be permitted, if this
Policy is under the Reduced Paid Up Mode or if the loan under the Policy is outstanding. The remaining
Paid Up Additions will continue to participate in bonus(es), as and when declared by Us.
iv. Subject to Sections 10.7.6 and 10.8.1, You may send a written request to Us for changing the bonus option.
However, such a change shall become effective on the Policy Anniversary date, which follows the receipt of such
written request.
3.5.2. Terminal Bonus
i. Under this Policy, We may at Our discretion pay an additional 1 (One) time Terminal Bonus on the earlier of the death
of the Life Insured or on the survival of the Life Insured till the Maturity Date or on surrender of this Policy, provided
this Policy is in force for at least 10 (Ten) complete Policy Years from the Effective Date.
ii. Upon surrender of this Policy after completion of 10 (Ten) Policy Years from the Effective Date, only the cash value
of the Terminal Bonus will be payable by Us. The cash value of the Terminal Bonus, if any, will be determined
using the Paid Up Addition purchase rates which are not guaranteed and can be revised by Us, subject to the prior
approval of the Authority.
4. PAYMENT OF BENEFITS
4.1. Subject to Sections 3, 5 and 10.4, the benefits are payable under this Policy only on submission of satisfactory proof of the Life
Insured's death to Us or of the Life Insured surviving on the Maturity Date. The benefits under this Policy shall be payable to:
i the Policyholder, if the Policyholder and the Life Insured are different; or
ii. You, if the Life Insured and the Policyholder are same (only in the case of maturity benefit); or Nominee(s), in case of the
death of the Life Insured, if the Policyholder and the Life Insured are same, provided a valid nomination has been recorded
with Us in accordance with Section 10.6; or
iii. assignee(s), where an assignment and/or endorsement has been recorded with Us in accordance with Section 10.7; or
iv. proving executors, administrators or other legal representatives who have obtained representation to Your estate from a
competent court, if You or the Nominee are not living at that time; or
v. such person or persons as directed by a court of competent jurisdiction in India, limited at all times to the monies payable under
this Policy.
4.2. Any benefit/ claim payment under this Policy shall be made by Us in Indian Rupees or in any other currency in accordance
with the applicable guidelines issued by the Reserve Bank of India from time to time.
4.3. Once the benefits under this Policy are paid to a person specified in Section 4.1, the same shall constitute a valid discharge of
Our liability under this Policy.
5. CLAIM PROCEDURE
5.1. For processing a claim request under this Policy, We will require all of the following documents:
i. claimant's statement in the prescribed form;
ii. original Policy document;
iii. death certificate issued by the local/municipal authority (only in the case of the death of the Life Insured);
iv. identity proof of the beneficiary including Nominee(s) bearing their photographs and signatures (only in the case of the
death of the Life Insured); and
v. any other documents or information required by Us for assessing and approving the claim request.
5.2. We reserve the right to scrutinize the documents submitted by the claimant and/or investigate the cause of death of the Life Insured/

Page 8 of 18

INSURANCE
 the Policyholder and deny the claim partially or completely on the basis of Our scrutiny of the documents or investigation, as the
case may be. We shall only pay the appropriate benefits under this Policy subject to Our satisfaction:
i. that the benefits have become payable as per the terms and conditions of this Policy; and
ii. of the bonafides and credentials of the said person claiming the benefits under this Policy.
5.3. Any person claiming the benefits under this Policy can download the claim request documents from Our website
www.maxlifeinsurance.com or can obtain the same from any of Our branches and offices.
6. PREMIUMS
6.1. The Premiums under this Policy can be paid by You annually, semi-annually, quarterly or monthly as per the Premium payment mode
that You have chosen.
6.2. You have an option to change the Premium payment mode by submitting a written request to Us. We will allow the change in the
Premium payment mode provided the minimum premium excluding Extra Premium, if any, as mentioned in the table below, are
adhered to and the Guaranteed Maturity Sum Assured remains unchanged:

Premium payment mode Minimum Premium premium (excluding Extra Premium,

service tax, any other taxes, cesses or levies, if any)

Annual INR 8,500 to be paid annually

Semi – Annual INR 6,000 to be paid semi-annually

Quarterly INR 4,000 to be paid quarterly

Monthly INR 1,500 to be paid monthly

6.3. Any change in the Premium payment mode will result in a change in the Premium amount basis the applicable Modal Factors.
A change in Premium payment mode shall be effective only on the Policy Anniversary following the receipt of such request.
6.4. The Premiums are to be paid by You by the due dates and in the manner specified in the Schedule.
6.5. You can pay the Premiums at any of Our offices or through our website www.maxlifeinsurance.com or by any other means, as
informed by Us from time to time. Any Premium paid by You through a cheque or any other instrument/ medium will be deemed to
have been received only after the same has been fully realized and credited to Our bank account.
6.6 The Premium payment receipt shall be issued in Your name, which shall be subject to realization of cheque or any other
instrument/medium.
7. TAXES
7.1. All Premiums are subject to applicable taxes, cesses, levies including service tax, education cess, etc. which shall be entirely
borne by You and will be paid by You along with the Premium. If any imposition (tax or otherwise) is levied on Us by any
statutory or administrative body under this Policy, We reserve the right to claim the same from You. Alternatively, We have the right
to deduct the amount from the benefits payable by Us under this Policy.
7.2. Tax benefits and liabilities under this Policy are subject to prevailing tax laws. Tax laws and the benefits arising from the
same are subject to change. You are advised to seek the opinion of Your tax advisor in relation to applicable tax benefits and
liabilities.
8. SURRENDER
8.1. This Policy shall acquire a Surrender Value provided:
i. all the due Premiums for the first 2 (Two) Policy Years have been received and applied by Us on or after the due dates for the
Policy where the Premium Payment Term is of 6 (Six) years or 8 (Eight) years; or
ii. all the due Premiums for the first 3 (Three) Policy Years have been received and applied by Us on or after the due dates for the
Policy where the Premium Payment Term is of 10 (Ten) years or 12 (Twelve) years.
8.2. You may request in writing to surrender this Policy at any time only if the Policy has acquired the Surrender Value. On
receipt of such a request, this Policy shall terminate and the Surrender Value (if any) prevailing on the date of request for
the surrender of this Policy, shall be payable by Us. If the Policy has not acquired the Surrender Value in accordance with
Section 8.1 above, then, no Surrender Value shall become payable by Us.
8.3. The Surrender Value payable will be subject to the condition that there are no statutory or other restrictions to the contrary. Upon
surrender of this Policy, no benefits under this Policy shall be payable thereafter and this Policy will terminate.
8.4. Guaranteed Surrender Value
8.4.1. The Guaranteed Surrender Value will be determined in the Policy Year in which the surrender is effected, as a percentage
of the total Premiums less Extra Premium (if any) received and applied by Us on or after the due dates, in
accordance with the table below, plus guaranteed cash value of accrued Paid Up Additions, if any, which have not
been withdrawn by You. The guaranteed cash value of accrued Paid Up Additions is based on guaranteed cash value
rates which are determined by Us in consultation and approval from the Authority and which are different from the
Page 9 of 18
 Paid Up Addition purchase rates as mentioned in Section 3.5.1.iii.c.4).

Percentage (%) of total Premiums less Extra Premium (if any) Received (subject to the condition that Premiums for the
first 2 (Two) Policy Years or first 3 (Three) Policy Years, as the case may be, have been received and applied by Us, in
accordance with the Section 8.1)
Policy Year of Policy with Premium Policy with Premium Policy with Premium Policy with Premium
surrender Payment Term of 6 Payment Term of 6 Payment Term of 10 Payment Term of 12
years or 8 years and years or 8 years and years and with the years and with the
with the Policy Term of with the Policy Term of Policy Term of 20 Policy Term of 25
15 years 20 years years years

1 0% 0% 0% 0%
2 30% 30% 0% 0%
3 30% 30% 30% 30%
4-7 50% 50% 50% 50%
8 56% 53% 53% 52%
9 61% 57% 57% 55%
10 67% 60% 60% 57%
11 73% 63% 63% 59%
12 79% 67% 67% 62%
13 84% 70% 70% 64%
14 90% 73% 73% 66%
15 90% 77% 77% 69%
16 - 80% 80% 71%
17 - 83% 83% 74%
18 - 87% 87% 76%
19 - 90% 90% 78%
20 - 90% 90% 81%
21 - - - 83%
22 - - - 85%
23 - - - 88%
24 - - - 90%
25 - - - 90%
8.5. Special Surrender Value
8.5.1. Special Surrender Value will be determined by Us from time to time, in consultation with and approval by the Authority.
This Special Surrender Value will always be greater than or equal to the Guaranteed Surrender Value. The Special Surrender
Value is not guaranteed.
8.5.2. Special Surrender Value is the sum of:
i. (Reduced Paid Up Maturity Sum Assured divided by 1000) multiplied by the Special Surrender Value Factor;
ii. cash value of accrued Paid Up Additions, if any; and
iii. cash value of Terminal Bonus, if any.
9. LOANS
9.1. Once this Policy has acquired the Surrender Value, then, You will be eligible for grant of loans from Us.
9.2. The minimum amount of loan which can be granted by Us under this Policy is INR 10,000 (Rupees Ten Thousand). The
maximum amount of loan which can be granted under this Policy during the Policy Term shall not exceed 50% (Fifty percent) of
the Special Surrender Value payable under this Policy, subject to such terms and conditions as may be determined by Us from time to
time.
9.3. If You have obtained a loan under this Policy, then, You are required to pay interest on such loan as may be determined by Us
from time to time. The interest on the loan will be compounded and applied annually on the Policy Anniversary at 11% (Eleven
percent) per annum, which rate may be revised by Us from time to time.
9.4. If the loan amount granted to You and the accumulated interest on such loan exceeds the Surrender Value, this Policy will
terminate. However, if You have availed a loan under this Policy and We have received all due Premiums, then, this Policy shall
not terminate and will continue with benefits payable under this Policy.
9.5. If You have availed loan under this Policy, accordingly, the paid-in Cash Bonus option and Premium offset Cash Bonus option as
specified in Sections 3.5.1.iii.a) and 3.5.1.iii.b) respectively will not be available to You and We will change the Cash Bonus
option to purchase Paid Up Additions option.
9.6. Upon grant of a loan under this Policy, this Policy shall automatically be assigned in Our favour, till the time the entire

Page 10 of 18
 loan amount including interest or dues towards such loan has been repaid to Us. On repayment of the loan and accumulated
interest to Us, if any, this Policy will be reassigned to You. On such repayment and on receipt of Your request to change the
Cash Bonus option, We will change the Cash Bonus option.
9.7. We reserve the right to recover the outstanding loan along with the accrued interest from the benefits payable in the case of
surrender or maturity or death of the Life Insured, by deducting the appropriate amounts from the benefits payable on
happening of such events.
10. GENERAL PROVISIONS
10.1. Free Look
10.1.1. You have a period of 15 (Fifteen) days from the date of receipt of this Policy to review the terms and conditions of
this Policy. If You disagree to any of the terms or conditions of this Policy, You have the option to return the original
Policy to Us, by stating the objections/ reasons for such disagreement. Upon return of this Policy by You, this Policy shall
terminate forthwith and all rights, benefits including the death and maturity benefit and interests under this Policy shall cease
immediately. We will only refund the Premiums received by Us, after deducting the proportionate risk Premium for the
period of cover, charges of stamp duty paid and the expenses incurred on medical examination of the Life Insured, if any.
10.2. Suicide Exclusion
10.2.1. Notwithstanding anything stated herein, if the Life Insured commits suicide, whether sane or insane, within 12 (Twelve)
months from the Effective Date or the date of revival of this Policy, all risks and benefits under this Policy shall cease and no
benefits are payable under this Policy. In such an event, We will only pay the following to a person specified under Section 4.1:
i. higher of the Special Surrender Value or total Premiums received (excluding rider premiums, if any), if the Policy has
acquired a Surrender Value; or
ii. the total Premiums received (excluding rider premiums, if any) by Us, if the Policy has not acquired a Surrender Value.
10.3. Declaration of the Correct Age
10.3.1. Declaration of the correct Age and/ or gender of the Life Insured is important for Our underwriting process and calculation of
Premiums payable under the Policy. If the Age and/or gender declared in the Proposal Form is found to be incorrect at any time
during the Policy Term or at the time of claim, We may revise the Premium with interest and/or applicable benefits payable
under the Policy in accordance with the Premium and benefits that would have been payable, if the correct Age and/ or gender
would have made the Life Insured eligible to be covered under the Policy on the Date of Commencement subject to Section 45
of the Insurance Act, 1938 as amended from time to time.
10.4. Fraud, Misrepresenation And Forfeiture
10.4.1. Fraud, misrepresentation and forfeiture would be dealt with in accordance with provisions of Section 45 of the Insurance Act,
1938 as amended from time to time. [A leaflet containing the simplified version of the provisions of the above section is
enclosed in Annexure – (1) for reference]”.
10.5. Fraud
10.5.1. If You or anyone acting at Your direction or within Your knowledge, or any person under or in respect of this Policy makes
or advances any claim knowing it to be false or fraudulent in any way, then, We will cancel this Policy subject to such
fraud being established by Us in accordance with Section 45 of the Insurance Act as amended from time to time.
10.6. Nomination
10.6.1. Nomination is allowed as per Section 39 of the Insurance Act, 1938 as amended from time to time. [A leaflet containing the
simplified version of the provisions of the above section is enclosed in Annexure – (2) for reference].
10.7. Assignment
10.7.1. Assignment is allowed as per Section 38 of the Insurance Act, 1938 as amended from time to time. [A leaflet containing the
simplified version of the provisions of the above section is enclosed in Annexure – (3) for reference].
10.7.2. If this Policy is assigned to any person other than an individual by You, then, the Cash Bonus option shall automatically be
changed by Us to purchase Paid Up Addition option as specified in Section 3.5.1.iii.c) irrespective of any other option that
may have been chosen by You.
10.8. Upon Death of Policyholder and Change in Policyholder
10.8.1. If You and the Life Insured are different then, upon Your death, no benefits shall become payable under this Policy and the
Cash Bonus option shall automatically be changed by Us to purchase Paid Up Addition option as specified in Section
3.5.1.iii.c) irrespective of any option that may have been chosen by You. Your legal heirs may continue to avail the
benefits under this Policy, by paying the due Premiums to Us and by submitting the requisite documents as specified by Us
and subject to other conditions prescribed by Us from time to time.
10.8.2. You may request Us to make the Life Insured, the Policyholder under the Policy by giving Us prior written notice provided
that the Life Insured shall not become the Policyholder unless the Life Insured meets all our eligibilty criteria in accordance
with Our guidelines and policies and We have issued a written endorsement under the Policy confirming the change in
Policyholder.
10.8.3. From the date of Our written endorsement confirming the Life Insured as the Policyholder, You shall automatically cease to
have any rights, benefits or obligations under the Policy and all rights, benefits and obligations shall vest entirely with the
Life Insured.
10.9. Grace Period

Page 11 of 18
 10.9.1. We will allow a grace period of 15 (Fifteen) days if You have chosen monthly mode for payment of the Premium and 30
(Thirty) days, if You have chosen any other mode, from the due date of the unpaid Premium, for paying the overdue Premium
to Us. During the grace period, We will accept the overdue Premium without any interest and the insurance coverage under
this Policy will continue.
10.9.2. During the grace period, if the overdue Premium is not paid and the Life Insured dies, then, We will pay the death benefit
under this Policy, after deducting the said overdue Premium from the amount payable under this Policy.
10.10. Lapsation of Policy
10.10.1. Subject to Section 3.4, if the Premium (along with the service tax or any other taxes, cesses or levies, if any) is not received by Us
by the end of the grace period as specified in Section 10.9 above, this Policy shall lapse and no benefits under Section 3 shall
be payable under this Policy and no rights can be exercised by You till the revival of the Policy.
10.10.2. If You revive this Policy in accordance with Section
10.11 below, then, the benefits and the rights under this Policy shall be revived.
10.10.3. However, if this Policy has acquired a SurrenderINSURANCE
Value and upon non-payment of the overdue Premiums by You till the
expiry of the grace period as specified in Section 10.9 above, then, this Policy shall not lapse and shall by default become a Policy
under Reduced Paid Up Mode.
10.11. Revival of Policy
10.11.1. A lapsed Policy can be revived at Our discretion, within 2 (Two) years from the due date of the first unpaid Premium:
i. on receipt of Your written request to revive this Policy by Us;
ii. if You produce an evidence of insurability at Your own cost which is acceptable to Us; and
iii. on payment of all overdue Premiums (along with the service tax or any other taxes, cesses or levies, if any) to Us with
late fee and/ or interest at such a rate as may be determined by Us from time to time.
10.11.2. The revival of the lapsed Policy shall take effect only after We have approved the same in accordance with Our board
approved underwriting policy and communicated to You in writing. All the accrued Cash Bonus(es) and the benefits under
the lapsed Policy shall be revived upon such revival without interest. If a lapsed Policy is not revived within the prescribed
period allowed for revival,this Policy shall terminate on the expiry of such prescribed period for revival.
10.11.3. You have an option to revive a Policy under Reduced Paid Up Mode, within 2 (Two) years from the due date of the first
unpaid Premium, by:
i. requesting Us in writing;
ii. paying all the overdue Premiums (along with the service tax or any other taxes, cesses or levies, if any), together with
interest and/ or late fee as determined by Us from time to time; and
iii. submitting an evidence of insurability at Your own cost which is acceptable to Us.
10.11.4. The revival of the Policy under the Reduced Paid Up Mode shall take effect only after We have approved the same in
accordance with Our board approved underwriting policy and communicated Our decision to You in writing. All
accrued bonus(es) and original benefits including death, survival and maturity benefits which were originally payable will
be restored on such revival. However, no interest shall be payable by Us on such restoration.
10.11.5. If a Policy under Reduced Paid Up Mode is not revived within the prescribed period as specified in Section 10.11.3, then,
the Policy under Reduced Paid Up Mode cannot be revived and will continue to be under Reduced Paid Up Mode for the
remaining part of the Policy Term.
10.12. Electronic Transactions
10.12.1. You will comply with all such terms and conditions as prescribed by Us from time to time, and all transactions effected
by or through facilities for conducting remote transactions including the internet, world wide web, electronic data
interchange, call centres, tele-service operations (whether voice, video, data or any combination thereof) or by means of
electronic, computer, automated machines network or through other means of telecommunication, established by Us or on
Our behalf, for and in respect of this Policy, or in relation to any of Our products and services, shall constitute legally binding
and valid transactions when executed in adherence to and in compliance with the terms and conditions for such facilities, as
may be prescribed by Us from time to time.
10.13.Amendment
10.13.1. No amendments to this Policy will be effective, unless such amendments are expressly approved in writing by Us.
10.14. Administrative and Judicial Intervention
10.14.1. If any administrative or judicial body imposes any condition on this Policy for any reason, We are bound to follow the
same which may include suspension of all benefits and obligations under this Policy.
10.15. Force Majeure
10.15.1. If Our performance or any of Our obligations are in any way prevented or hindered as a consequence of any act of God or
State, strike, lock out, legislation or restriction by any government or any other authority or any other circumstances beyond
Our anticipation or control, the performance of this Policy shall be wholly or partially suspended during the continuance of
such force majeure. Under an intimation/approval of the Authority, We will resume Our obligations under the Policy, to
the extent possible, after the force majeure conditions ceased to exist even for the period during which the force majeure
conditions existed.
10.16. Other Restrictions

Page 12 of 18
 10.16.1. This Policy contains no restrictions as to travel or occupation.

11. TERMINATION OF POLICY

11.1. This Policy shall terminate upon the happening of any of the following events:
i. on the date on which We receive free look cancellation request as per Section 10.1 from You; or
ii. upon payment of the death benefit to a person as specified in Section 4.1 or the date of intimation of repudiation of the
claim by Us in accordance with the provisions of this Policy; or
iii. if this Policy has not acquired a Surrender Value and the due Premiums have not been received by Us, on the expiry of the
prescribed period for revival of the lapsed Policy, in accordance with Section 10.11.2; or
iv. on the date of surrender of this Policy; or
v. on the Maturity Date; or
vi. if the loan and accumulated interest exceeds the Surrender Value payable in accordance with Section 9.4.
12. DISPUTE REDRESSAL PROCESS UNDER THE POLICY
12.1. All consumer grievances and/or queries may be first addressed to Our customer helpdesk as mentioned below or to the office
address as mentioned in the Schedule:
Max Life Insurance Company Limited
Plot No. 90A, Sector 18, Gurgaon, 122015, Haryana, India Tel No : 0124-4219090
Email : [email protected]
12.2. In case You are not satisfied with the decision of the above office, or have not received any response within 10 (Ten) days, You
may contact by way of a written complaint signed by You/ complainant or by Your/complainant's legal heirs with full details of
the complaint and Your/complainant's contact information, to the following official for resolution:
Head Operations and Customer Services Max Life Insurance Company Limited
Plot No. 90A, Sector 18,
Gurgaon, 122015, Haryana, India. Toll free No. - 1800-200-4006
Email : [email protected] INSURANCE
12.3. In case You are not satisfied with Our decision, or have not received any reply from Us within a period of 1 (One) month, You
may approach the Insurance Ombudsman at the address mentioned in Annexure A or at the Authority's website www.irda.gov.in, if
Your grievance pertains to:
i. any partial or total repudiation of claims by Us; or
ii. any dispute on the legal construction of the Policy in so far as such disputes relate to claims; or
iii. delay in settlement of claim; or
iv. any dispute with regard to Premium paid or payable in terms of this Policy; or
v. non issuance of any insurance document to customers after receipt of Premium.
12.4. As per provision 13(3) of the Redressal of Public Grievances Rules 1998, a complaint to the Insurance Ombudsman can be
made within a period of 1 (One) year after the insurer has rejected the representation or sent its final reply on the
representation of the complainant, provided the complaint is not on the same matter, for which any proceedings before any court,
or consumer forum or arbitrator is pending.
13. COMMUNICATION & NOTICES
13.1. Our contact details are mentioned in Section 12.1 of this Policy. For any updates, please visit Our website
www.maxlifeinsurance.com. You should mention the correct Policy number for all communications made by You to Us and for
all Premium remittances made by You.
13.2. All notices meant for Us must be in writing and delivered to Our address as mentioned in Section 12.1 above, or such other
address as We may notify from time to time.
13.3. All notices meant for You will be in writing and will be sent by Us to Your address as shown in the Schedule or as
communicated by You and registered by Us. We will send You the notices by post, courier, hand delivery, fax or e-
mail/electronic mode or by any other means as determined by Us. If You change Your address, or if the address of the
Nominee changes, You must notify Us immediately and should ensure that the updated information has reached Us.
14. GOVERNING LAW AND JURISDICTION
14.1. Indian law shall govern this Policy and the relationship between You and Us.
14.2. This Policy and all rights, obligations and liabilities arising hereunder, shall be enforced in accordance with the laws of India.
14.3. The competent courts in India shall have exclusive jurisdiction in all matters and causes arising out of this Policy.

Page 13 of 18
 Annexure A: List of Ombudsman
AHMEDABAD - Office of the Insurance Ombudsman, 2nd Floor, Ambica House, Ashram Road, Ahmedabad-380
014. Tel.:- 079-27545441/27546840 Fax : 079-27546142 Email: [email protected]. (State of
Gujarat and Union Territories of Dadra & Nagar Haveli and Daman and Diu.)

BENGALURU -Office of the Insurance Ombudsman, J24th Main Road, Jeevan Soudha Bldg.,JP Nagar, 1st Phase,
Ground Floor Bengaluru – 560 078. Tel.: 080-26652049/26652048Email: [email protected]. (State
of Karnataka)

BHOPAL - Office of the Insurance Ombudsman, 2nd Floor, Janak Vihar Complex, 6, Malviya Nagar,
Bhopal(M.P.)-462 003. Tel.:- 0755-2769201/9202 Fax : 0755-2769203 Email: [email protected] (States
of Madhya Pradesh and Chattisgarh.)

BHUBANESHWAR - Office of the Insurance Ombudsman, 62, Forest Park, Bhubaneshwar-751 009. Tel.:- 0674-
2596455/2596003 Fax : 0674-2596429 Email: [email protected] (State of Orissa.)

CHANDIGARH - Office of the Insurance Ombudsman, S.C.O. No.101-103,2nd Floor, Batra Building, Sector 17-D,
Chandigarh-160017. Tel.:- 0172-2706468/2772101 Fax : 0172-2708274 Email:[email protected]
(States of Punjab, Haryana, Himachal Pradesh, Jammu & Kashmir and Union territory of Chandigarh.)

CHENNAI- Office of the Insurance Ombudsman, Fathima Akhtar Court, 4th Floor, 453 (old 312), Anna Salai,
Teynampet, Chennai-600 018.Tel.:- 044-24333668 /24335284 Fax : 044-24333664 Email:
[email protected] [State of Tamil Nadu and Union Territories - Pondicherry Town and Karaikal (which
are part of Union Territory of Pondicherry).]

DELHI- Office of the Insurance Ombudsman, 2/2 A, Universal Insurance Building., Asaf Ali Road, New Delhi-110
002. Tel.:- 011-011-23234057/23232037 Fax : 011-23230858 Email: [email protected] (States of Delhi)

GUWAHATI - Office of the Insurance Ombudsman, “Jeevan Nivesh”, 5th Floor, S.S. Road, Guwahati-781 001
Tel.:- 0361-2132204/5 Fax : 0361-2732937 Email: [email protected] (States of Assam, Meghalaya,
Manipur, Mizoram, Arunachal Pradesh, Nagaland and Tripura.)

HYDERABAD - Office of the Insurance Ombudsman, 6-2-46, 1st Floor, Moin Court, A.C. Guards, Lakdi-Ka-Pool,
Hyderabad-500 004. Tel : 040-65504123/23312122 Fax: 040-23376599 Email: [email protected]
(States of Andhra Pradesh and Union Territory of Yanam – a part of the Union Territory of Pondicherry.)

JAIPUR- Office of the Insurance Ombudsman, Ground Floor, Jeevan Nidhi II, Bhawani Singh Road, Jaipur – 302005
Tel : 0141-2740363 Email: [email protected] (State of Rajasthan)

ERNAKULAM - Office of the Insurance Ombudsman, 2nd Floor, CC 27/2603, Pulinat Bldg., M.G. Road,
Ernakulam-682 015. Tel : 0484-2358759/2359338 Fax : 0484-2359336 Email: [email protected]
[State of Kerala and Union Territory of (a) Lakshadweep (b) Mahe-a part of Union Territory of Pondicherry.]

KOLKATA - Office of the Insurance Ombudsman, Hindustan Building. Annexe, 4th Floor, C.R. Avenue, Kolkata-
700 072. Tel : 033-22124339/22124346 Fax : 033-22124341 Email: [email protected] (States of West
Bengal, Bihar, Sikkim, Jharkhand and Union Territories of Andaman and Nicobar Islands.)

LUCKNOW- Office of the Insurance Ombudsman,Jeevan Bhawan, Phase-2,

6th Floor, Nawal Kishore Road, Hazaratganj, Lucknow-226 001. Tel : 0522 -2231331/2231330 Fax : 0522-2231310
Email: [email protected] (States of Uttar Pradesh and Uttaranchal.)

MUMBAI - Office of the Insurance Ombudsman, 3rd Floor, Jeevan Seva Annexe, S.V. Road, Santacruz(W),
Mumbai 400054. Tel : 022-26106960/26106552 Fax : 022-26106052 Email: [email protected] (State
of Goa and Mumbai Metropolitan Region excluding Navi Mumbai and Thane)

PUNE - Office of the Insurance Ombudsman,3rd Floor, Jeevan Darshan Bldg,N.C. Kelkar Road,Narayanpet, Pune –
Page 14 of 18
411030. Tel: 020-41312555Email: [email protected] (State of Maharashtra including Navi Mumbai and
Thane and excluding Mumbai Metropolitan Region.)

NOIDA - Office of the Insurance Ombudsman,4th Floor, Bhagwan Sahai Palace,Main Road, Naya Bans, Sector-
15,Noida - 201301.Tel: 0120-2514250/51/53Email: [email protected] (State of Uttaranchal and the
following Districts of Uttar Pradesh:Agra, Aligarh, Bagpat, Bareilly, Bijnor, Budaun, Bulandshehar, Etah, Kanooj,
Mainpuri, Mathura, Meerut, Moradabad, Muzaffarnagar, Oraiyya, Pilibhit, Etawah, Farrukhabad, Firozbad,
Gautambodhanagar, Ghaziabad, Hardoi, Shahjahanpur, Hapur, Shamli, Rampur, Kashganj, Sambhal, Amroha,
Hathras, Kanshiramnagar, Saharanpur.)
PATNA - Office of the Insurance Ombudsman, 1st Floor, Kalpana Arcade Building, Bazar Samiti Road, Bahadurpur,
Patna – 800006, Tel No: 06122680952, Email id : [email protected].(Bihar, Jharkhand.)

Page 15 of 18
 Annexure 1 representative or nominee or assignees of insured, within
Section 45 – Policy shall not be called in question on a period of 90 days from the date of repudiation.
the ground of mis-statement after three years 8. Fact shall not be considered material unless it has a
Provisions regarding policy not being called into direct bearing on the risk undertaken by the insurer. The
question in terms of Section 45 of the Insurance Act, onus is on insurer to show that if the insurer had been
1938, as amended from time to time are as follows: aware of the said fact, no life insurance policy would
1. No Policy of Life Insurance shall be called in question have been issued to the insured.
on any ground whatsoever after expiry of 3 yrs from 9. The insurer can call for proof of age at any time if he is
a. the date of issuance of policy or entitled to do so and no policy shall be deemed to be
called in question merely because the terms of the policy
b. the date of commencement of risk or are adjusted on subsequent proof of age of life insured.
c. the date of revival of policy or So, this Section will not be applicable for questioning
age or adjustment based on proof of age submitted
d. the date of rider to the policy subsequently.
whichever is later.
2. On the ground of fraud, a policy of Life Insurance may [Disclaimer: This is only a simplified version prepared
be called in question within 3 years from for general information. You are advised to refer to the
a. the date of issuance of policy or Insurance Act 1938 as amended from time to time for
complete and accurate details.]
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.
5. No Insurer shall repudiate a life insurance policy on the
ground of fraud, if the insured / beneficiary can prove
that the misstatement 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

Page 16 of 18
 Annexure 2 proved that policyholder could not have conferred such
Section 39 - Nomination by Policyholder beneficial title on the nominee having regard to the
Nomination of a life insurance policy is as below in nature of his title.
accordance with Section 39 of the Insurance Act, 1938 14. If nominee(s) die after the policyholder but before his
as amended from time to time. The extant provisions in share of the amount secured under the policy is paid, the
this regard are as follows: share of the expired nominee(s) shall be payable to the
1. The policyholder of a life insurance policy on his own heirs or legal representative of the nominee or holder of
life may nominate a person or persons to whom money succession certificate of such nominee(s).
secured by the policy shall be paid in the event of his 15. The provisions of sub-section 7 and 8 (13 and 14 above)
death. shall apply to all life insurance policies maturing for
2. Where the nominee is a minor, the policyholder may payment after the commencement of Insurance Laws
appoint any person to receive the money secured by the (Amendment) Act 2015.
policy in the event of policyholder’s death during the 16. If policyholder dies after maturity but the proceeds and
minority of the nominee. The manner of appointment is benefit of the policy has not been paid to him because of
to be laid down by the insurer. his death, his nominee(s) shall be entitled to the
3. Nomination can be made at any time before the maturity proceeds and benefit of the policy.
of the policy. 17. The provisions of Section 39 are not applicable to any
4. Nomination may be incorporated in the text of the policy life insurance policy to which Section 6 of Married
itself or may be endorsed on the policy communicated to Women’s Property Act, 1874 applies or has at any time
the insurer and can be registered by the insurer in the applied except where before or after Insurance Act, 1938
records relating to the policy. as amended from time to time, a nomination is made in
5. Nomination can be cancelled or changed at any time favour of spouse or children or spouse and children
before policy matures, by an endorsement or a further whether or not on the face of the policy it is mentioned
endorsement or a will as the case may be. that it is made under Section 39. Where nomination is
intended to be made to spouse or children or spouse and
6. A notice in writing of change or cancellation of
children under Section 6 of MWP Act, it should be
nomination must be delivered to the insurer for the
specifically mentioned on the policy. In such a case
insurer to be liable to such nominee. Otherwise, insurer
only, the provisions of Section 39 will not apply.
will not be liable if a bonafide payment is made to the
person named in the text of the policy or in the
[Disclaimer: This is only a simplified version prepared
registered records of the insurer.
for general information. You are advised to refer to the
7. Fee to be paid to the insurer for registering change or Insurance Act 1938 as amended from time to time for
cancellation of a nomination can be specified by the complete and accurate details.]
Authority through Regulations.
8. On receipt of notice with fee, the insurer should grant a
written acknowledgement to the policyholder of having
registered a nomination or cancellation or change
thereof.
9. A transfer or assignment made in accordance with
Section 38 shall automatically cancel the nomination
except in case of assignment to the insurer or other
transferee or assignee for purpose of loan or against
security or its reassignment after repayment. In such
case, the nomination will get affected to the extent of
insurer’s or transferee’s or assignee’s interest in the
policy. The nomination will get revived on repayment of
the loan.
10. The right of any creditor to be paid out of the proceeds
of any policy of life insurance shall not be affected by
the nomination.
11. In case of nomination by policyholder whose life is
insured, if the nominees die before the policyholder, the
proceeds are payable to policyholder or his heirs or legal
representatives or holder of succession certificate.
12. In case nominee(s) survive the person whose life is
insured, the amount secured by the policy shall be paid
to such survivor(s).
13. Where the policyholder whose life is insured nominates
his
a. parents or
b. spouse or
c. children or
d. spouse and children
e. or any of them
the nominees are beneficially entitled to the amount
payable by the insurer to the policyholder unless it is
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 Annexure 3 claim to IRDAI within 30 days of receipt of the refusal
Section 38 - Assignment and Transfer of Insurance letter from the insurer.
Policies 12. The priority of claims of persons interested in an
Assignment or transfer of a policy should be in insurance policy would depend on the date on which the
accordance with Section 38 of the Insurance Act, 1938 notices of assignment or transfer is delivered to the
as amended from time to time. The extant provisions in insurer; where there are more than one instruments of
this regard are as follows: transfer or assignment, the priority will depend on dates
1. The policy may be transferred/assigned, wholly or in of delivery of such notices. Any dispute in this regard as
part, with or without consideration. to priority should be referred to the Authority.
2. An Assignment may be effected in a policy by an 13. Every assignment or transfer shall be deemed to be
endorsement upon the policy itself or by a separate absolute assignment or transfer and the assignee or
instrument under notice to the Insurer. transferee shall be deemed to be absolute assignee or
3. The instrument of assignment should indicate the fact of transferee, except
transfer or assignment and the reasons for the a. where assignment or transfer is subject to
assignment or transfer, antecedents of the assignee and terms and conditions of transfer or assignment
terms on which assignment is made. OR
4. The assignment must be signed by the transferor or b. where the transfer or assignment is made upon
assignor or duly authorized agent and attested by at least condition that
one witness. i. the proceeds under the policy shall
become payable to policyholder or
5. The transfer or assignment shall not be operative as
nominee(s) in the event of assignee
against an insurer until a notice in writing of the transfer
or transferee dying before the
or assignment and either the said endorsement or
insured; or
instrument itself or copy there of certified to be correct
by both transferor and transferee or their duly authorised ii. the insured surviving the term of the
agents have been delivered to the insurer. policy.
Such conditional assignee will not be entitled to obtain a
6. Fee to be paid for assignment or transfer can be
loan on policy or surrender the policy. This provision
specified by the Authority through Regulations.
will prevail notwithstanding any law or custom having
7. On receipt of notice with fee, the insurer should Grant a force of law which is contrary to the above position.
written acknowledgement of receipt of notice. Such 14 In other cases, the insurer shall, subject to terms and
notice shall be conclusive evidence against the insurer of conditions of assignment, recognize the transferee or
duly receiving the notice. assignee named in the notice as the absolute transferee
8. If the insurer maintains one or more places of business, or assignee and such person
such notices shall be delivered only at the place where a shall be subject to all liabilities and equities to
the policy is being serviced. which the transferor or assignor was subject to
9. The insurer may accept or decline to act upon any at the date of transfer or assignment;
transfer or assignment or endorsement, if it has b. may institute any proceedings in relation to the
sufficient reasons to believe that it is policy; and
a. not bonafide; c. obtain loan under the policy or surrender the
b. not in the interest of the policyholder; policy without obtaining the consent of the
c. not in public interest; or transferor or assignor or making him a party to
d. is for the purpose of trading of the insurance the proceedings
policy. 15. Any rights and remedies of an assignee or transferee of a
10. Before refusing to act upon endorsement, the insurer life insurance policy under an assignment or transfer
should record the reasons in writing and communicate effected before commencement of the Insurance Laws
the same in writing to policyholder within 30 days from (Amendment) Act, 2015 shall not be affected by this
the date of policyholder giving a notice of transfer or section.
assignment.
[Disclaimer: This is only a simplified version prepared
11. In case of refusal to act upon the endorsement by the
for general information. You are advised to refer to the
insurer, any person aggrieved by the refusal may prefer a
Insurance Act, 1938 as amended from time to time for
complete and accurate details.]

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