CreditAccess Life - Raksha Chakra Plus

UIN: 163N016V01

About the product

CreditAccess Life - Raksha Chakra Plus is a Non-Linked, Non-Participating, Group, Pure Risk, Credit Life Insurance Product available at the time of taking a loan from any lending institution. The product is primarily designed for borrowers availing loans from Micro Finance Institutions (MFIs), Non-Banking Finance Companies (NBFC), and other financial lending institution like Banks, Co-operative Banks, Co-operative Societies etc. The eligible customer base predominantly comprises individuals availing loans for purposes such as housing, vehicle purchase, business establishment/expansion, and other long-tenure credit. This being a group product, a master policy is issued to the master policyholder which might be any lending entity. Each member of the group, insured under the master policy, is issued an individual certificate of insurance (COI). Minimum group size must be 10 at the inception of the master policy.

Key Features

  1. Product provides for two death benefit options
    • Level Cover -The Sum Assured on death or death benefit shall be consistent with the outstanding loan amount at the inception of the policy and will remain flat for the cover term.
    • Reducing Cover -Where death benefit will reduce monthly starting from the beginning of the second policy month. In case of death during the cover term, death benefit as per the Benefit Schedule issued at the outset, for each member, in Certificate of Insurance shall be paid.
      • Option A: For loans where the loan is repaid through monthly instalments and where the cover term must be equal to the loan term.
      • Option B: For loans where the loan is repaid through monthly instalments and where the cover term must be less than the loan term. The cover term must be chosen in multiple of years only.
      • Only single premium mode is available for reducing cover options
  2. Product provides for two life cover options
    • Single Life Cover - cover for individuals availing loan
    • Joint Life Cover – cover for co-applicants in the same loan providing cover under a single certificate of insurance
      • If the claim is settled and not rejected, the COI stand extinguished.
  3. Product Provide following premium paying options
    • Single Premium Mode
    • Regular Premium Mode
      • Yearly Premium Mode
      • Monthly Premium Mode
      • Fortnightly Premium Mode
      • Weekly Premium Mode
  4. Premium rate types applicable for all type of cover options
    • Unit Premium Rate – same rate applies to all members irrespective of their age
    • Age Band Rates - rate varies for each member based on their age bands (e.g., 18–25, 26–35, etc.)
    • Age Wise Rates - rate varies for each member by their age at entry
  5. Premium calculation for single life can be either unit rate (for policy term upto 2 years only), age band rates or age wise rates for all the type of cover options.
  6. Premium Calculation for Joint Life
    Rate Type Premium Basis
    Unit Rate (for policy term upto 2 years only ) Premium is derived once using the unit rate, considering the age and gender of the primary holder, and then multiplied by the number of lives covered (2 to 5) under the policy.
    Age band rates Each insured life's applicable age band is identified individually. The premium is derived by applying the relevant band rate for each life's own age band, and these individual premiums are summed across all lives covered (up to 5)
    Age wise rates Each insured life's exact age is used to pick the corresponding age-wise rate from the premium table. The premium is calculated separately for each life based on its own age, and the individual premiums are summed across all lives covered (up to 5)

How does the product work

Being a group product, a master policy is issued to the Master Policy Holder to the lender under which all the members who have availed loans will be covered. Each member of the group, insured under master policy, is issued a Certificate of Insurance which contains details on policy, member, nominee and terms and conditions applicable.

Eligibility

Minimum Maximum
Entry Age
For single Premium 18 years 74 years
For regular Premium 18 years 65 years
Maturity Age 18 years 75 years
Sum Assured ₹ 10,000 ₹ 30,00,000
Policy Term
Single Premium Mode - Level cover 1 Month 240 Months
Single Premium Mode - Reducing cover 1 Month - Option A
1 Year - Option B 		240 Months
Yearly Premium Mode 2 Years 20 Years
Monthly Premium Mode 1 Year 20 Years
Fortnightly Premium Mode 1 Year 5 Years
Weekly Premium Mode 1 Year 5 Years
Group Size 10 members No limit
Single Life Cover 1 member 1 member
Joint Life Cover 2 members 5 members

Death Benefit

Upon death of the Insured member during the Cover Term, provided the cover is in force and all due premiums have been paid, death benefit shall be payable in Lumpsum as per the chosen Death Benefit option.

Sum Assured Option (Death Benefit Option)

  1. Level Cover :

    The death benefit remains constant throughout the cover term for the insured member. Level cover is offered for all loan types (other than interest-only also) to ensure simplicity and meet the needs of the loan customers — a fixed sum assured is easier to understand.

    Premium Mode Age at entry Death Benefit for Level cover
    Single Premium Mode less than 50 years Higher of applicable Sum Assured on Death as per Benefit Schedule or 1.25 times the Single premium in respect of that member. Where Single Premium is excluding extra premium and taxes, if collected separately
    50 years and above Higher of applicable Sum Assured on Death as per Benefit Schedule or 1.10 times the Single premium in respect of that member.
    Regular Premium Mode less than 50 years Higher of applicable Sum Assured on Death as per Benefit Schedule or 7 times the Annualised premium in respect of that member. Where Annualised premium is excluding extra premium, loading for modal premiums and taxes, if collected separately
    50 years and above Higher of applicable Sum Assured on Death as per Benefit Schedule or 5 times the Annualised premium in respect of that member.

  2. Reducing Cover :

    Where death benefit will reduce monthly starting from the beginning of the second policy month. In case of death during the cover term, death benefit as per the Benefit Schedule issued at the outset, for each member, in Certificate of Insurance shall be paid.

    • Option A: The death benefit will reduce monthly starting from the beginning of the second policy month. Cover Term shall be equal to loan tenure at inception of the policy, including moratorium period, if any. The cover term can be chosen in multiple of months.
    • Option B: The death benefit will reduce monthly starting from the beginning of the second policy month. Cover Term shall be less than the loan tenure at inception of the policy, including moratorium period, if any. The cover term must be chosen in multiple of years only. The Certificate of Insurance terminates after the cover term.

    Where, the death benefit shall be equal to Sum Assured on Death as per the Benefit Schedule issued at the outset for each member as mentioned in their Certificate of Insurance.

    • Only single premium mode is available for reducing cover options.
    • Benefit Schedule shall remain unchanged during the cover term irrespective of the actual outstanding loan tenure and actual outstanding loan amount.
    • In case of death during the cover term, death benefit as per the Benefit Schedule issued at the outset for each member in Certificate of Insurance shall be paid, irrespective of the actual outstanding loan amount.
    • The loan interest rate applicable ranges from minimum 7% to maximum of 49% as provided by the Master Policy Holder.
    • The Death Benefit is floored at Rs.10,000, even if the outstanding loan amount falls below this level.

    Moratorium Period -

    • Moratorium Period is period at the inception of the cover where principal is not assumed to be repaid during this period. Hence, this is available for Reducing Cover only.
    • Outstanding loan amount remains constant during the Moratorium Period and starts reducing at the end of Moratorium Period.
    • The death benefit during the moratorium period is equal to the Sum Assured on Death as specified under Reducing Cover.
    • The death benefit will remain unchanged during the Moratorium Period. Thereafter, the death benefit will reduce over the outstanding cover term based on the loan interest rate. The accrued loan interest during the Moratorium Period is not covered in the death benefit.
    • Insured members can choose any Moratorium Period (in whole months), without interest accrual, ranging from 1 month to 60 months as per loan terms and conditions.
    • In the event of death of the insured member during the Moratorium Period, upon approval of the claim, the death benefit as specified in the Certificate of Insurance, irrespective of the actual loan outstanding will be payable.
  • Sum Assured on Death shall be consistent with the original loan amount sanctioned or with the loan schedule at inception.
  • In case of death of an insured member before the expiry of the cover and while the cover is still in force, a death benefit will be paid immediately as per the Benefit Schedule stated in the Certificate of Insurance.
  • At the time of claim settlement, company will call for a credit account statement / outstanding loans schedule from the master policyholder. In case of any outstanding loan balance, the death benefit will be paid to the master policyholder to the extent of such outstanding loan amount, and the balance claim amount (if any) will be payable to the nominee / beneficiary of the insured member.
  • The Cover Term shall be less than or equal to the outstanding loan tenure at the inception of cover, including Moratorium Period, if any.

Type of Cover Option

For each of above Death Benefit Options, following cover options are available for each master policy:

  1. Single Life Cover : In case of death of the insured member during the cover term, the death benefit is paid as per the Benefit Schedule. On payment of death benefit, the cover terminates and all rights, benefits and interests under the cover stand extinguished.

  2. Joint Life Cover :

    • A maximum of 5 lives can be covered under the Joint Life Cover Option.
    • Joint Life Cover will be issued only when the proposed lives are co-applicants in the covered loan, and an insurable interest exists between them.
    • 100% of the death benefit is paid in case of death of any of the joint life insured members, whichever occurs first. The risk cover ceases on occurrence of the first death.
    • In case the claim is repudiated or rejected for any reason whatsoever on the death of the first life insured, the death benefit will not be paid; however, the cover for the surviving insured members will continue for the remaining term. On death of the first life insured, renewal premiums (if applicable) only in respect of the surviving member shall be payable.
    • In case of the simultaneous death of two or more insured members, 100% of the death benefit is paid.
    • On payment of the death benefit, the cover terminates, and all rights, benefits, and interests of the insured members under the cover stand extinguished.
    • At the time of claim settlement, in case of any outstanding loan balance, the death benefit will be paid to the master policyholder to the extent of outstanding loan amount, and the balance claim amount (if any) will be paid to the nominee or beneficiary of the insured member. If the claim is settled and not rejected; the COI stand extinguished.
    • Joint life option will be provided if each insured member meets age-related boundary conditions and have an insurable interest between them. The Death Benefit option will be same for all the members.
    • The relation with the primary borrower who may be covered under this cover are as follows: Spouse, Mother, Father, Father-in-law, Son, Daughter, Mother-in-law, Brother, Brother-in-law, Sister, Sister-in-law, Grandparents.

Maturity Benefit

There is no maturity benefit applicable under this product

Surrender Benefit

No surrender benefit is payable for regular premium payment modes.

The Surrender option is available to both the Master Policyholder and the insured members of the group. In case of a surrender of a COI, a refund value as mentioned below will be paid for the single premium option.

Refund value is calculated as follows:

For Level Cover :

Refund value = x% × Single premium paid × (Unexpired cover term in months ÷ Total cover term in months)

(months are rounded down)

Where, x = 0% when policy term is less than or equal to 12 months, x = 30% when policy term is between 13 to 35 months and x = 50% when policy term is greater than or equal to 36 months.

For Reducing Cover :

Refund value = x% × Single premium paid × (Unexpired cover term in months ÷ Total cover term in months) × (Sum Assured on Death as on date of surrender according to Benefit Schedule ÷ Sum Assured on Death)

(months are rounded down)

Where, x = 0% when policy term is less than or equal to 12 months, x = 30% when policy term is between 13 to 35 months and x = 50% when policy term is greater than or equal to 36 months.

Single premium means premium received, excluding any extra premium, rider premium and taxes (as applicable)

Modal Loading

Modal loadings are applicable for regular premium policies only

Modal loadings will be applied on the Yearly premiums to arrive at the modal premiums i.e. monthly, weekly and fortnightly.

Mode Modal Loading
Yearly 1
Monthly 0.097
Fortnightly 0.05
Weekly 0.026

Loans

No loan is available under this policy.

Forfeiture and Non-forfeiture Regulations

Forfeiture Regulations :

In case it is found that any untrue or incorrect statement is contained in the proposal, personal statement, declaration and connected documents or any material information is withheld by the Master Policyholder/Member, then and in every such case the policy shall be void and all claims to any benefit by virtue thereof shall be subject to the provisions of Section 45 of the Insurance Act, 1938 as amended from time to time.

Non –forfeiture Regulations :

Not applicable as there is no paid-up value available under this product.

Termination of Insurance Cover

The insurance cover of a Member shall terminate on the happening of any of the following events:

  1. On payment of Death Benefit
  2. On expiry of the Period of Coverage in respect of that member
  3. On surrender of policy by Master Policyholder
  4. On surrender of insurance cover by the Member
  5. On payment of free look cancellation amount
  6. On event of Forfeiture.

Taxes

Taxes, cesses & levies would be levied on premium paid as per applicable laws and shall be to the account of the policyholder.

General Terms and Conditions

  • Assignment : The member insured has right to assign the policy in accordance with Section 38 of the Insurance Act, 1938 and amended from time to time. In the event where the policy is assigned to the MPH, the MPH shall have no right to assign the policy further.
  • Nomination : Nomination is allowed as per provisions of section 39 of Insurance Act, 1938 as amended from time to time.
  • Freelook period :
    • For the Master Policyholder

      MPH shall have a free look period of 30 days beginning from the date of receipt of the Master Policy Document (whether received electronically or otherwise), to review the terms and conditions of the policy. In case MPH does not agree to any of the policy terms and conditions, or otherwise, and has not made any claim, MPH shall have the option to return the policy to the Company for cancellation by communicating the same in writing, stating the reasons for cancellation. The Company will refund the premium paid within 7 days from complete request received date after deducting the proportionate risk premium for the period of cover provided and the expenses, if any, incurred by the Company in respect of stamp duty charges, in accordance with the underwriting policy of the Company. All benefits under the policy shall stand extinguished immediately upon cancellation of the policy under the free look. A Master Policy Document once returned by MPH cannot be revived, reinstated, or restored at any point in time, and a new proposal will have to be made by MPH for a new Master Policy.

    • For the Insured member

      The insured member is entitled to a free look period of 30 days beginning from the date of receipt of the Certificate of Insurance (COI) (whether received electronically or otherwise), to review the terms and conditions of the COI. In case the insured member does not agree to any of the Certificate of Insurance terms and conditions, or otherwise, and has not made any claim, the insured member shall have the option to return the COI to the Company for cancellation by communicating the same in writing, stating the reasons for cancellation. The Company will refund the premium paid within 7 days from complete request received date after deducting the proportionate risk premium for the period of cover provided and the expenses, if any, incurred by the Company in respect of medical examination and stamp duty charges, in accordance with the underwriting policy of the Company. All benefits under the COI shall stand extinguished immediately upon cancellation of the COI under the free look.

      In case of return of the Certificate of Insurance, the Master Policyholder (MPH) shall thereafter also remove the name of the insured member from the member record shared with the insurer.

  • Exclusions :
    • Suicide:
      • In case of Single Life cover, the Sum Assured on Death will not be payable in case of death due to suicide within 12 months from the date of commencement of risk under the policy / joining the scheme, as applicable. In such cases the nominee or beneficiary of the insured member shall only be entitled to 80% of the Total Premiums paid till the date of death (excluding tax) or Refund value (as applicable) as on date of death whichever is higher, provided the policy/Certificate of Insurance is in force. The risk cover ceases on occurrence of the death of the insured member.
      • In case of Joint Life cover, the Sum Assured on Death will not be payable in case of death of any of the insured member, due to suicide within 12 months from the date of commencement of risk under the policy /joining the scheme, as applicable. In such cases the nominee or beneficiary of the insured member shall only be entitled to 80% of the Total Premiums paid till the date of death (excluding tax) or Refund Value (as applicable) as on the date of death whichever is higher, provided the policy/ Certificate of Insurance is in force. The risk cover ceases on occurrence of the first death.
  • Alterations : No alterations/changes are allowed post issuance except error corrections, if any.
  • Grace period :
    • 15 days for monthly, fortnightly and weekly premium payment policies
    • 30 days for yearly premium payment policies
    • In respect of non-single premium policies, if death occurs during the grace period, the death benefit shall be paid after deducting the premium(s) outstanding, if any, as of the date of death.
  • Lapse : The Certificate of Insurance will be treated as lapsed COI on account of non-payment of the due premiums within the grace period. This is applicable for regular premium policies. No benefits are payable on lapse for Regular Premium Mode policies. Not Applicable for single premium policies.
  • Revival : Period of five consecutive years or the policy term, whichever is earlier, from the date of first unpaid premium. Not applicable for single premium policies.

Grievances

  • Notices :
  • All notices meant for us whether under this policy or otherwise must be in writing and delivered to us at the address mentioned below, or such other address as we may notify to you from time to time.
  • All notices meant for you will be in writing and we will send the same to the most recent address registered with us. If you change address, you must notify us immediately.
  • Please notify us immediately in case of any change in postal/permanent address/contact details along with relevant KYC documents. This will enable the Company to send you regular updates on your policy.

Grievance Redressal

The Company’s service strategy is to enable the customer to avail the services through multiple avenues. The avenues are as under

Customer can raise the complaint by any mode:-

  1. Can raise the complaint with CreditAccess Life Insurance
  2. Can raise complaint through BIMA BHAROSA - https://bimabharosa.irdai.gov.in/
  3. Customer can raise the complaint on National Consumer Helpline (NCH) - https://consumerhelpline.gov.in/public/
  4. Customer can raise the complaint on Centralised Public Grievance Redress And Monitoring System (CPGRAMS) - https://pgportal.gov.in/Home/LodgeGrievance
  5. Can Write to Ombudsman - https://www.cioins.co.in/Ombudsman
  6. How To register the complaint:-
    1. To register complaint with CreditAccess Life Insurance
      • Website: https://www.creditaccesslife.in/ or https://creditaccesslife.in/GRC_doc.php
      • Write to us on grievance@calife.infrom your registered mail id.
      • Call us on 1800-569-0801.
      • Visit nearest Branch -https://creditaccesslife.in/contact.php
        • Grievance Redressal Officer (GRO)
        • The Company has designated Grievance Redressal Officer, the address & contact details of the GRO are as below:
        • Grievance Redressal Officer
        • Email: gro@calife.in
        • Customer Care Number: 1800-569-0801
        • Addres: 595, 1st Floor, 15th Cross,1st Phase, Outer Ring Road,
        • J.P.Nagar, Bengaluru, Karnataka, India – 560078, India.
        • The following is the escalation matrix in case there is no response to a grievance within the prescribed timelines or if the customer is unsatisfied with the Company’s efforts to resolve the grievance.
        • 1st level of escalation: Manager - Customer Relations (service@calife.in)
        • 2nd level of escalation - Chief Operating Officer (grievance@calife.in)
    2. To raise complaint through BIMA BHAROSA
      • If customers are not able to access the insurance company directly for any reason, Bima Bharosa system provides a gateway to register complaints with insurance company. Complaints shall be registered with insurance companies first and only if need will be escalated to IRDAI (Consumer Affairs Department- Bima Bharosa).
      • If customer submits complaint on IRDAI portal (given below), process flow will be: Bima Bharosa User Manual for Policy Holder
    3. To raise the complaint on National Consumer Helpline
    4. To raise the complaint on the Centralised Public Grievance Redress And Monitoring System (CPGRAMS)
    5. Write to Ombudsman:-

Grievance Redressal Turn Around Time

Acknowledgement of Grievance Immediately
Resolve a Grievance 14 days
Closure of the Grievance A complaint shall be considered as disposed of and closed when:
  • The request of the complainant has been fully acceded or,
  • The complainant has indicated in writing, acceptance of the response of the Company or,
  • The complainant has not responded to the Company within 8 weeks of the Company’s written response.

Section 45 of the Insurance Act, 1938

The provision of Section 45 of the Insurance Act, 1938 as amended from time to time shall be applicable. The current provision is as under:

  1. No policy of life insurance shall be called in question on any ground whatsoever after the expiry of three years from the date of the policy, i.e. from the date of issuance of the policy or the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is later.
  2. A policy of life insurance may be called in question at any time within three years from the date of issuance of the policy or the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is later on the ground of fraud:
  3. Provided that the insurer shall have to communicate in writing to the insured or the legal representatives or nominees or assignees of the insured the grounds and materials on which such decision is based.
  4. Explanation I- For the purposes of this sub-section, the expression “fraud” means any of the following acts committed by the insured or by his agent, with the intent to deceive the insurer or to induce the insurer to issue a life insurance policy:-
    1. the suggestion, as a fact of that which is not true and which the insured does not believe to be true;
    2. the active concealment of a fact by the insured having knowledge or belief of the fact;
    3. any other act fitted to deceive; and
    4. any such act or omission as the law specially declares to be fraudulent.
  5. Explanation II- Mere silence as to facts likely to affect the assessment of the risk by the insurer is not fraud, unless the circumstances of the case are such that regard being had to them, it is the duty of the insured or his agent, keeping silence to speak, or unless his silence is, in itself, equivalent to speak.
  6. Notwithstanding anything contained in subsection (2), no insurer shall repudiate a life insurance policy on the ground of fraud if the insured can prove that the misstatement of or suppression of a material fact was true to the best of his knowledge and belief or that there was no deliberate intention to suppress the fact or that such misstatement of or suppression of a material fact are within the knowledge of the insurer:
  7. Provided that in case of fraud, the onus of disproving lies upon the beneficiaries, in case the policyholder is not alive.
  8. Explanation – A person who solicits and negotiates a contract of insurance shall be deemed for the purpose of the formation of the contract, to be the agent of the insurer.
  9. A policy of life insurance may be called in question at any time within three years from the date of issuance of the policy or the date of commencement of risk or the date of revival of the policy or the date of the rider to the policy, whichever is later, on the ground that any statement of or suppression of a fact material to the expectancy of the life of the insured was incorrectly made in the proposal or other document on the basis of which the policy was issued or revived or rider issued:
  10. Provided that the insurer shall have to communicate in writing to the insured or the legal representatives or nominees or assignees of the insured the grounds and materials on which such decision to repudiate the policy of life insurance is based:
  11. Provided further that in case of repudiation of the policy on the ground of misstatement or suppression of a material fact, and not on the ground of fraud the premiums collected on the policy till the date of repudiation shall be paid to the insured or the legal representatives or nominees or assignees of the insured within a period of ninety days from the date of such repudiation.
  12. Explanation - For the purposes of this sub-section, the misstatement of or suppression of fact shall not be considered material unless it has a direct bearing on the risk undertaken by the insurer, the onus is on the insurer to show that had the insurer been aware of the said fact no life insurance policy would have been issued to the insured.
  13. Nothing in this section shall prevent the insurer from calling 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 that the age of the life insured was incorrectly stated in the proposal.

PROHIBITION OF REBATES (SECTION 41 OF THE 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. Provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer.
  3. Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to ten lakh rupees.
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