CreditAccess Raksha Chakra

About the product

CreditAccess Raksha Chakra is a non-linked, non-participating, group credit-linked life insurance product.

The target customer segment for the product is low-income rural and urban consumers taking loans for purposes like housing, vehicles, establishing business etc for a long duration. The product will be sold on the group platform through Small Finance Banks, NBFCs, Micro finance institutions, Banks, other financial institutions, and other lending groups.

This product offers both Single and Annual modes of Premium Payments.

• Single Premium - Premium is paid one-time at the inception of the policy.
• Annual Premium - Premium is paid Annually for the entire policy term.

Product Features

Key Features

• Life Cover: Two options are available as mentioned below: - Initial Loan Cover (Level Cover):The sum assured, which is equal to the initial/outstanding loan amount, stays at same level throughout the Cover Term. - Outstanding Loan Cover (Reducing Cover):The sum assured decreases as per the loan repayment schedule at the time of inception of the policy as stated in the certificate of insurance. This can be reduced monthly or annually.
• Death Benefit: Sum Assured as per the Certificate of Insurance (COI) is payable on death of the Member during the policy term, depending on Life Cover option chosen.
• Surrender Value: Surrender benefit will be paid as -
𝑃𝑟𝑒𝑚𝑖𝑢𝑚 𝑃𝑎𝑖𝑑 𝑥
{1 − [
No.of months elapsed
total policy term in months
]} 𝑥 [
Death Benefit as on date of surrender as per the Benefit Schedule
Death Benefit at policy inception
] 𝑥 90%
• Moratorium option: Under this Option, Sum assured is fixed for the moratorium period which is selected by customer. This is available under Outstanding Loan Cover Option (Reducing Cover).

Terms and Conditions

• Assignment : Not Applicable
• Freelook period : The Insured has the option to cancel the policy within 30 days of receiving the policy document if they find the terms and conditions unsatisfactory and receive a full refund.
• Grace period :
  • Annual Premium : 30 days is applicable for annual premium cases under this policy from the last unpaid due date.
• Lapse : Not applicable.
• Nomination : Insured can nominate a person / persons to whom the death benefit will be payable.
• Paid up value :
  • Annual Premium : Paid up Sum Assured will be calculated as
    ( Total period for which the premiums are paid / Maximum period for which premiums were originally payable ) x Sum Assured
• Revival period :
  • Annual Premium : Period of five consecutive years or the policy term, whichever is earlier, from the date of first unpaid premium.
• Suicide : Nominee is entitled to receive premium paid (excluding tax).

Contact us at:

CreditAccess Life Insurance Limited

IRDAI Registration No. 163. CIN - U66020KA2019PLC120540

#595, 1st Floor, 15th Cross,1st Phase, Outer Ring Road, J.P. Nagar, Bengaluru, Karnataka, India – 560078

Email – service@calife.in

Telephone number – 080-6997 8070