CreditAccess Life - Raksha Kavach Plus

UIN: 163N015V01

About the product

CreditAccess Life - Raksha Kavach Plus (Micro-Insurance Product) is a Non-linked, Non-Participating Group Credit Life Micro-Insurance Product. This is a group credit life term insurance product. Product is primarily for low-income borrowers of micro loans from MFIs, NBFC-MFIs, and SHG/JLG lending channels — largely rural and semi-urban households engaged in informal-sector livelihoods.

Key Features

  1. Product provides for two death benefit options
    • Level Cover -where death benefit shall be consistent with the loan amount for the tenure of loan or policy term as chosen during the loan process.
    • 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.
  2. Product provides for three life cover options
    • Single Life Cover - cover for individuals availing loan
    • Joint Life Cover (Option A) – 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.
    • Joint Life Cover (Option B) – cover for co-applicants in the same loan providing cover under individual certificate of insurance for the respective co-applicant
      • If the claim is settled and not rejected, the COI of the deceased member will stand extinguished while the COI will continue to be in-force for the surviving members.
  3. Product Provide for three premium paying options
    • Single Premium Mode
    • Yearly Premium Mode
    • Monthly 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, age band rates or age wise rates for all the type of cover options.
  6. Premium Calculation for Joint Life – Option A
    7. Rate Type Premium Basis
    Unit Rate 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 agewise 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)
  7. Premium Calculation for Joint Life – Option B cover, the premiums will be calculated like Single Life cover as all lives covered under this product are treated as single lives.

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 18 years 74 years
Maturity Age 18 years 75 years
Sum Assured ₹ 5,000 ₹ 2,00,000
Policy Term
Single Premium Mode 1 Month 120 Months
Yearly Premium Mode 2 Years 10 Years
Monthly Premium Mode 1 Year 10 Years
Group Size 5 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 policy term, the Sum Assured will be paid to the nominee. The amount of death benefit payable depends on the Type of Death Benefit Option and Type of Cover Option chosen by the insured member

Death Benefit Option

For Level Cover : The sum assured is equal to the initial/outstanding loan amount, which remains same throughout the cover term.

For Reducing Cover : The sum assured decreases monthly from the second policy month. The death benefit is as per the Benefit Schedule in Certificate of Insurance. For this option, the Death Benefit is floored at Rs.5,000, even if the outstanding loan amount falls below this level. This ensures compliance with the minimum sum assured regulation.

Cover Option

Single Life Cover : The death benefit is paid to the nominee of the insured member (the loanee) as per the Benefit Schedule. On payment of death benefit, the cover terminates and all rights, benefits and interests under the cover stand extinguished.

Joint Life Cover (Option A) : The lives of co-applicants of the loan are covered under one policy (“joint insured members”). 100% of the death benefit is paid in case of death of any of the joint insured members, whichever occurs first. The risk cover ceases on occurrence of the first death. In case of simultaneous death of both the insured lives, 100% death benefit is paid on first claim basis, and the risk cover ceases.

Joint Life Cover (Option B) : This option covers multiple persons taking a loan for a specific goal and jointly responsible for repayment of the loan. Each member is issued a separate policy document and are eligible for 100% of death benefit. In the event of the death of any insured member, 100% of the death benefit is paid in respect of that insured member. Similarly, in the event of the death of any other surviving insured member during the cover term, 100% of the death benefit is paid in respect of that insured member as well. In case of the simultaneous death of two or more insured member, 100% of the death benefit shall be paid in respect of each of the deceased insured member. The risk cover ceases on payment of the death benefit.

Maturity Benefit

There is no maturity benefit applicable under this product

Surrender Benefit

No surrender 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.

For Single Premium contracts, the certificate of insurance acquires a Refund Value immediately which is computed as defined below

For Level Cover :

Refund value = 60% × Single premium paid × (Unexpired cover term in months ÷ Total cover term in months)

(months are rounded down)

For Reducing Cover :

Refund value = 60% × 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)

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

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 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 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. 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 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. 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, death benefit will not be payable in case of death due to suicide within 12 months from the risk commencement date. The risk cover ceases on occurrence of the death of the insured member.
      • In case of Joint Life (Option A) cover, death benefit will not be payable in case of death of either of the insured member due to suicide within 12 months from the date of risk commencement. The risk cover ceases on occurrence of the death of the insured member.
      • In case of Joint Life (Option B) cover, death benefit will not be payable in case of death of either of the insured member, due to suicide within 12 months from the date of risk commencement. The risk cover ceases on occurrence of the death of the insured member while the cover for the other insured members will continue.
      • Nominee(s) or beneficiary of the insured member are entitled to 80% of the Single Premium or First Year Premium paid as on 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.
  • Alterations : No alterations/changes are allowed post issuance except error corrections.
  • Grace period :
    • 15 days for monthly premium payment policies
    • 30 days for yearly premium payment policies
  • Lapse : The Certificate of Insurance (COI) will be treated as lapsed COI on account of nonpayment 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 modes:-

  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 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. Not withstanding 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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Policy Terms & Conditions