LIFE INSURANCE CORPORATION OF INDIA

(Established by the Life Insurance Corporation Act, 1956)

Registration Number: 512

LIC’s NEW CHILDREN’s MONEY BACK PLAN (UIN: 512N296V02)

(A Non Linked, Participating, Individual, Life Assurance Savings Plan)

PART – A

Ref: NB (Address and e-mail id of Branch Office

Space for Name and Address of Policyholder Space for Address and e-mail id of Branch Office

Dear Policyholder, Date:

Re: Your Policy No. _______________

We have pleasure in forwarding herewith the above policy document comprising of Part A to Part G which please find in order.

We would also like to draw your kind attention to the information mentioned in the Schedule of the Policy and the benefits
available under the Policy Some of our plans have certain options (including rider) available under them. It is important that the
options, if any, available under this plan and mentioned in the policy document are noted carefully as it will be helpful to you, in
case you decide to exercise any of the available options. It is also essential to note that such option, if available and mentioned in
the document of this plan has to be exercised in the right manner and during the stipulated time limit as prescribed herein.

Free Look Period

We would request you to go through the terms and conditions of this Policy and in case you disagree with any of the terms and
conditions, you may return the Policy within a period of 15 days from the date of receipt of Policy Document stating the reasons of
your objections and disagreement. On receipt of the policy we shall cancel the same and the amount of premium deposited by you
shall be refunded to you after deducting the proportionate risk premium (for Base Policy and rider, if opted for) for the period of
cover and charges for medical examination, special reports, if any and stamp duty.

In case you have any Complaints/Grievance, you may approach the Branch office on the address mentioned above or Grievance
Redressal Officer/Ombudsman, whose address is as under:

Address of Grievance Redressal Officer:

Address and contact details of Insurance Ombudsman:

If you find any errors in this Policy Document, you may return this Policy for corrections.

Thanking you.

Yours faithfully,

p. Chief/Sr. Branch Manager

Agent’s/ Intermediary’s Agent’s/ Intermediary’s Name Agent’s/Intermediary’s

Code Mobile Number/ Landline Number

LIC’s New Children’s Money Back Plan UIN: (512N296V02) Page 1 of 19

 We would also like to draw your attention to the following aspects:

1) Change of Address: In case you change your residence, kindly ensure that you inform the change in address
to the servicing Branch Office.

2) Assignment: Assignment should be in accordance with the provisions of Section 38 of Insurance Act, 1938,
as amended from time to time. The current provisions of Section 38 are enclosed as Annexure-1 for
reference.

3) Nomination: Nomination should be in accordance with the provision of Section 39 of the Insurance Act,
1938, as amended from time to time. The current provisions of Section 39 are enclosed as Annexure-2 for
reference.

4) Within 90 days from the date of death, intimation of death along with death certificate must be notified in
writing to the office of the Corporation where the policy is serviced for any claims to be admissible.
However, delay in intimation of the genuine claim by the claimant may be condoned by the Corporation on
merit and where delay is proved to be for the reasons beyond his/her control.

5) Section 45 of Insurance Act, 1938: The current provisions of the same are enclosed as Annexure-3.

6) The approved version of Policy Document in respect of this plan is available on our website www.licindia.in

7) Please avail LIC’s e-services. Visit our website: www.licindia.in to enable us to serve you better.

These measures will enable us to serve you better.

LIC’s New Children’s Money Back Plan UIN: (512N296V02) Page 2 of 19

 PREAMBLE

THE LIFE INSURANCE CORPORATION OF INDIA (hereinafter called “the Corporation”) having received a Proposal along
with Declaration and the first premium from the Proposer and the Life Assured named in the Schedule referred to herein below
and the said Proposal and Declaration with the statements contained and referred to therein having been agreed to by the said
Proposer and the Corporation as basis of this assurance do by this Policy agree, in consideration of and subject to the due receipt of
the subsequent premiums as set out in the Schedule, to pay the Benefits, but without interest, at the Branch Office of the
Corporation where this Policy is serviced to the person or persons to whom the same is payable in terms of the said Schedule, on
proof to the satisfaction of the Corporation of the Benefits having become payable as set out in this Policy Document, of the title
of the said person or persons claiming payment and of the correctness of the age of the Life Assured stated in the Proposal if not
previously admitted.

And it is hereby declared that this Policy of Assurance shall be subject to the Definitions, Benefits, Conditions related to Servicing
Aspects, Other Terms and Conditions and Statutory Provisions printed in this policy and that the Schedule and every endorsement
placed on the Policy by the Corporation shall be deemed part of the Policy.

LIC’s New Children’s Money Back Plan UIN: (512N296V02) Page 3 of 19

 SCHEDULE
DIVISIONAL OFFICE: BRANCH OFFICE:
Policy Number: Basic Sum Assured (Rs.): Due date of premium:

UIN: Mode of payment of Premium:

Instalment Premium for Base Policy
Plan & Policy Term: (Rs.): Due Date of Payment of Last Premium
for Base Policy
Date of Commencement of Policy:
Total Instalment Premium (Rs.): Date of Birth of the Life Assured:
Date of Commencement of Risk:
(Taxes, if any, as applicable from time to
Date of Vesting: time are charged extra) Age of the Life Assured:

Date of Maturity: Whether Age Admitted?

Proposal Number.:
Whether Option to take Death Benefit in
Date of Proposal: instalments taken:

Date of Issuance of policy:

Benefit Illustration Reference No.:

Details of Rider Opted (Conditions of the rider opted and mentioned below are enclosed as endorsement to the policy).
Rider Opted UIN Date of Instalment Premium Due date of Date of expiry of
Commencement of for Rider payment of last rider
Risk for Rider premium for rider

Name and address of Proposer: Name and address of Life Assured:

Details of Nominee(s) under Section 39 of the Insurance Act, 1938

Nominee(s) Name Nominee’s Age Percentage Share Relationship to the Life Appointee Name (in
Assured case the Nominee is a
minor)

Period during which premiums payable Till the stipulated due date of payment of last premium or earlier death of the life
assured.
Dates when premium payable On the stipulated due date in …………….....
Signed on behalf of the Corporation at the above mentioned Branch Office, whose address and e-mail ID is given on the first page
and to which all communications relating to the policy should be addressed.

Date:
Examined by:
Form No.: p. Chief/ Sr. Branch Manager

LIC’s New Children’s Money Back Plan UIN: (512N296V02) Page 4 of 19

 PART – B: DEFINITIONS
The definitions of terms/words used in this Policy Document are as under:

1. Age is the age last birthday of the Life Assured at the time of the commencement of the policy.
2. Appointee is the person to whom the proceeds/benefits secured under the Policy are payable if the benefit becomes payable to
the nominee and nominee is minor as on the date of claim payment.
3. Annualized Premium shall be the Premium amount payable in a year chosen by the policyholder, excluding the taxes, rider
premium, underwriting extra premiums and loading for modal premiums, if any. .
4. Assignee is the person to whom the rights and benefits are transferred by virtue of an Assignment.
5. Assignment is the process of transferring the rights and benefits to an “Assignee”. Assignment should be in accordance with
the provisions of Section 38 of Insurance Act, 1938 as amended from time to time.
6. Base Policy is that part of the Policy referring to basic benefit (benefits referred to in this Policy Document excluding benefits
covered under rider, if opted for).
7. Basic Sum Assured means the amount specified in the Schedule as opted by the Policyholder at the time of taking the policy.
8. Beneficiary/Claimant means the person(s)/entity who is/are entitled to receive benefits under this Policy. The Beneficiary to
whom benefits are payable is the Proposer (before the vesting date) or Life Assured or his Assignee under Section 38 of the
Insurance Act, 1938, as amended from time to time or Nominee(s) under Section 39 of the Insurance Act, 1938, as amended
from time to time or proved Executors or Administrators or other Legal Representatives who should take out representation to
his/ her Estate or limited to the moneys payable under this Policy from any Court of any State or Territory of the Union of
India, as applicable..
9. Continued Insurability is the determination of insurability of Life Assured/Proposer on revival of policy with rider(s) if opted
for,to the satisfaction of the Corporation based on the information, documents and reports that are already available and any
additional information in this regard if and as may be required in accordance with the Underwriting Policy of the Corporation
at the time of revival.
10. Corporation means the Life Insurance Corporation of India established under Section.3 of the LIC Act, 1956.
11. Date of commencement of policy is the start date of this Policy.
12. Date of commencement of risk is the date on which the Corporation accepts the risk for insurance (cover) as evidenced in the
Schedule of the policy.
13. Date of issuance of policy is a date when a proposal after underwriting is accepted as a policy and this contract gets effected.
14. Date of Maturity means the date specified in the Schedule on which the Policy Term is completed.
15. Date of Vesting shall be the policy anniversary date coinciding with or immediately following the completion of 18 years of
age. On such vesting date, this policy shall be deemed to be a contract between the Corporation and the Life Assured. The Life
Assured shall become the absolute owner of the policy and the proposer or his estate shall cease to have any right or interest
therein.
16. Death Benefit means the benefit, , which is payable on death as specified in Condition 1 B of Part C of this Policy Document.
17. Discharge form is the form to be filled by Policyholder/Claimant to claim the survival / maturity /death benefit/surrender
under the policy.
18. Due Date means a fixed date on which the policy premium is due and payable by the Policyholder.
19. Endorsement means conditions attached/ affixed to this Policy incorporating any amendments or modifications agreed to or
issued by the Corporation.
20. Extra Premium means a charge due to underwriting decision, for any additional risk not provided for in the minimum
contract premium.
21. Final Additional Bonus, also called as Terminal Bonus, is an additional amount payable along with the the Simple
Reversionary Bonus when the policy terminates, provided such a Final Additional Bonus is declared by the Corporation and
the policy is eligible for such Final Additional Bonus..
22. Foreclosure is an action of closing the policy due to default in payment of outstanding loan or loan interest on due date when
the outstanding loan amount along with interest is to exceed the surrender value. .
23. Free Look Period is the period of 15 days from the date of receipt of the policy document by the Policyholder to review the
terms or conditions of this policy and where the policyholder disagrees to any of those terms and conditions, he/ she has the
option to return this policy.
24. Grace period is the time granted by the insurer from the due date for the payment of premium, without any penalty/ late fee,
during which time the policy is considered to be in-force with the risk cover without any interruption .
25. Guaranteed Surrender Value is the minimum guaranteed amount of Surrender Value payable to the Policyholder on
surrender of the policy.
26. In-force policy means a policy in which all the due premiums have been paid and the premiums are not outstanding beyond
the grace period.
27. IRDAI means Insurance Regulatory and Development Authority of India earlier called Insurance Regulatory and
Development Authority (IRDA).
28. Lapse is the status of the Policy when a due premium is not paid within the grace period.
29. Life Assured is the person on whose life the insurance cover has been accepted.
30. Loan is the interest bearing repayable amount granted by the Corporation against the surrender value payable to the
Policyholder.
31. Maturity Benefit means the benefit, which is payable on maturity as specified in Condition 1.A of Part C of this Policy
Document..
32. Material information is the information already known to the Policyholder/Life Assured/Proposer at the time of obtaining a
policy which has a bearing on underwriting of the proposal /Policy submitted.
33. Minor is a person who has not completed 18 years of age.
34. Nomination is the process of nominating a person(s) who is (are) named as “Nominee(s)” in the proposal form or
subsequently included/changed by an endorsement. Nomination should be in accordance with provision of Section 39 of the
LIC’s New Children’s Money Back Plan UIN: (512N296V02) Page 5 of 19
 Insurance Act, 1938 as amended from time to time.
35. Nominee(s) means the the person(s) nominated by the Policyholder (who is also the Life Assured) under this Policy who is
(are) authorised to receive the claim benefit payable under this Policy and to give a valid discharge to the Corporation on
settlement of the claim..
36. Option to take Death Benefit in instalments: Option to take death benefit in instalments, as specified in Condition 8 of Part
D of this Policy Document, is an option available under this Policy, to receive Death Benefit in instalments instead lumpsum
amount over a period chosen by the Policyholder /Life Assured.
37. Participating Policy means the Policy is eligible for share of profit depending upon the Corporation’s experience in
accordance with the terms and conditions of the policy.
38. Paid - Up is the status of the Policy, if the premiums are paid for at least two full years and subsequent premium(s) be not
paid..
39. Policy Anniversary means one year from the date of commencement of the Policy and the same date falling each year
thereafter, till the date of maturity.
40. Policy/ Policy Document means this document along with endorsements, if any, issued by the Corporation which is a legal
contract between the Policyholder and the Corporation.
41. Policyholder is the legal owner of this policy.
42. Policy term is the period, in years, as chosen by the policyholder and mentioned in the Schedule, commencing from the Date
of commencement of policy to the Date of Maturity ..
43. Policy Year is the period between two consecutive policy anniversaries. This period includes the first day and excludes the
next policy anniversary day.
44. Premium is the contractual amount payable by the Policyholder at specified times periodically as mentioned in the Schedule
of this Policy Document to secure the benefits under the policy.
The Premium payable will be “Total Instalment Premium” which includes
i. Instalment Premium for Base Policy and
ii. Instalment Premium for Rider, if Rider has been opted for.
The term ‘Premium’ used anywhere in this Policy Document does not include any taxes which is payable separately.
45. Proposer is a person who proposes the life insurance proposal.
46. Revival of a policy means restoration of the policy, which was discontinued due to the non-payment of premium, by the
insurer with all the benefits mentioned in the policy document, with or without rider benefits, if any, upon the receipt of all
the premiums due and other charges or/late fee, if any, as per the terms and conditions of the policy, upon being satisfied as to
the Continued Insurability ( as defined above) of the Life Assured and/or Proposer (if LIC’s Premium Waiver Benefit Rider
is opted for).
47. Revival Period means is the period of five consecutive years from the date of first unpaid premium, , during which period the
Policyholder is entitled to revive the policy which was discontinued due to the non-payment of premium.
48. Rider is an additional cover which can be opted for along with the Base Policy.
49. Rider Benefits means an amount of benefit payable on a specified event offered under the rider, and is allowed as add-on
benefit to benefit under Base Policy.
50. Rider Premium is the premium payable by the Policyholder along with the premium under Base Policy towards the additional
cover/benefit opted under the rider, if opted.
51. Schedule is the part of Policy Document that gives the specific details of your policy.
52. Settlement Option: Settlement Option, as specified in Condition 9 of Part D of this Policy Document, is an option available
under this Policy, to receive Maturity Benefit in instalments instead of lumpsum amount over a period chosen by the
Policyholder/ Life Assured.
53. Simple Reversionary Bonus is the surplus/profit declared at the end of each financial year by the Corporation based on the
Corporation’s experience to the Participating policies and added to the benefits under the policy as per terms and conditions as
specified in the policy document .
54. Sum Assured on Death means an absolute amount of benefit which is guaranteed to become payable on death of
life assured in accordance with the terms and conditions of the policy
55. Sum Assured on Maturity means the amount which is guaranteed to become payable on maturity of the policy, in
accordance with the terms and conditions of the policy.
56. Surrender means complete withdrawal / termination of the entire policy before expiry of policy term.
57. Surrender Value means an amount, if any, that becomes payable in case of surrender in accordance with the terms and
condition of this policy.
58. Survival Benefit is the specified benefit payable on survival of the Life Assured at the end of specified durations during the
term of this policy. This benefit shall be a fixed percentage of Basic Sum Assured as specified in Condition 1.C of Part C of
this Policy Document. .
59. Tabular Premium is the premium for chosen Basic Sum Assured and policy term, based on the age of the Life Assured
without application of any rebate or extra loading.
60. Total Premiums paid means the total of all premiums received, excluding any extra premiums, any rider premium and taxes.
61. Underwriting is the term used to describe the process of assessing risk and ensuring that the cost of the cover is proportionate
to the risks faced by the individual concerned. Based on underwriting, a decision on acceptance or rejection of cover as well as
applicability of suitable premium or modified terms, if any, is taken.
62. UIN means the Unique Identification Number allotted to this plan by the IRDAI.
63. Vested Bonus is the simple reversionary bonus, if any, which has already been declared and remains attached to the policy.

LIC’s New Children’s Money Back Plan UIN: (512N296V02) Page 6 of 19

 PART – C: BENEFITS
1. The following benefits are payable under an in-force policy:

A. Maturity Benefit : On the Life Assured surviving the stipulated Date of Maturity provided the policy is in-force , Sum
Assured on Maturity along with vested Simple Reversionary Bonuses and Final Additional Bonus, if any shall be payable;
where Sum Assured on Maturity is 40% of the Basic Sum Assured.

The Policyholder/Life Assured shall have an option to receive the Maturity benefit in lumpsum as specified above and/or
in instalments (Settlement Option), as specified in Condition 9 of Part D of this Policy Document.

B. Death Benefit: On death of the Life Assured before the stipulated Date of Maturity provided the policy is in- force:

On death Before the Date of Commencement of Risk:

An amount equal to the total amount of premium/s paid excluding taxes, extra premium and rider premium, if any, shall
be payable.

On death After the Date of Commencement of Risk:

Death Benefit, defined as sum of “Sum Assured on Death” and vested Simple Reversionary Bonuses and Final
Additional Bonus, if any, shall be payable. Where “Sum Assured on Death” is defined as higher of Basic Sum Assured
or 7 times of annualized premium.

This death benefit shall not be less than 105% of the total Premiums paid (excluding any extra premiums, any rider
premiums and taxes if any), upto the date of death

The Death Benefit shall be paid in lumpsum as specified above and/or in instalments, as specified in Condition 8 of Part
D of this Policy Document, as per the option exercised by the Policyholder/Life Assured.

C. Survival Benefit: On the Life Assured surviving on each of the respective policy anniversaries coinciding with or
immediately following the completion of ages 18 years, 20 years and 22 years, 20% of the Basic Sum Assured on each
occasion shall be payable, provided the policy is in-force.

2. Rider Benefit:
.
LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03): Under an in-force policy, this rider can be opted for on the
life of Proposer of the policy (as the Life assured is minor), at any time coinciding with the policy anniversary but within
the premium paying term of the Base Policy provided the outstanding premium paying term of the Base Policy and the
rider is at least five years. Further, this rider shall be allowed under the policy wherein the Life Assured is Minor at the
time of opting this rider.
If this rider is opted for, on death of proposer, payment of premiums in respect of base policy falling due after the date of
death till the expiry of rider term shall be waived.

Conditions of rider, if opted, is enclosed as an endorsement to this policy.

3. Date of commencement of risk (applicable only if the age of Life Assured is less than 8 years): In case the age at entry
of the Life Assured is less than 8 years (last birthday), the risk under this plan will commence either one day before the
completion of 2 years from the date of commencement of policy or one day before the policy anniversary coinciding with
or immediately following the completion of 8 years of age, whichever is earlier. For those aged 8 years or more at entry,
risk will commence immediately from the date of issuance of policy.
4. Vesting of policy on the life of a minor: If the Life Assured is alive on the date of vesting and if a request in writing for
surrendering the policy has not been received by Corporation before such Date of Vesting from the person entitled to the
policy moneys, this policy shall automatically vest in the Life Assured on such Date of Vesting.

5. Option to defer the Survival Benefit(s): The policyholder shall have an option to take the survival benefit(s) at any time
on or after its due date but during the currency of the policy. If the increased survival benefit(s) are not taken by the
policyholder during the currency of the policy the same shall be payable along with benefit payable at the time of
termination of the policy in form of death or maturity or surrender.

In case the policyholder opts to defer the due Survival Benefit (s) then, the Corporation will pay increased Survival Benefit
(s) equal to
Survival Benefits % * Basic Sum Assured * (Factors applicable to Survival Benefit(s))

The factors applicable to Survival Benefit(s) are enclosed as Annexure - 4.

Such options can be exercised for either or all the Survival Benefits separately and is to be intimated in writing to the
servicing Branch Office of the Corporation atleast six months before the due date. Else the Survival Benefits would be
paid on the due dates as per the terms of this policy.

LIC’s New Children’s Money Back Plan UIN: (512N296V02) Page 7 of 19

 6. Participation in profits: Provided the policy is in -force, depending upon the Corporation’s experience the policy shall
participate in profits in accordance with the applicable provisions of LIC Act 1956 as amended from time to time and
shall be eligible for Simple Reversionary Bonus at such rate and on such terms as may be declared by the Corporation.

Simple Reversionary Bonuses shall be declared annually at the end of each financial year provided the policy is in-force.
Once declared, they form part of the guaranteed benefits of the plan. Simple reversionary bonuses will be added from the
date of commencement of policy until the selected policy term or till death, if it occurs earlier.

In case the premiums are not duly paid, the policy shall cease to participate in future profits irrespective of whether or not
the policy has acquired paid up value.

In the event of policy being surrendered, the Surrender Value of vested bonuses, if any, as applicable on the date of
surrender, will be payable as specified in Condition.4 of Part D of this Policy Document.

Final Additional bonus may also be declared under the policy in the year when the policy results into a claim either by
death or maturity.

Final Additional Bonus shall not be payable under paid-up policies.

7. Payment of Premiums

a) The Policyholder has to pay the Premium on the due dates as specified in the Schedule of this Policy Document
along with applicable taxes, if any, from time to time.
b) In case of death of Life Assured under an in-force policy wherein all the premiums due till the date of death have
been paid and where the mode of payment of premium is other than yearly, balance premium(s), if any, falling due
from the date of death and before the next policy anniversary shall be deducted from the claim amount.

The Corporation does not have any obligation to issue a notice that premium is due or for the amount that is due.

8. Grace period: A grace period of 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and
15 days for monthly premiums from the date of First unpaid premium. If the premium is not paid before the expiry of the
days of grace, the Policy lapses.

If the death of the Life Assured occurs within the grace period but before the payment of the premium then due, the policy
will still be valid and the benefits shall be paid after deductions of the said unpaid premium as also the balance unpaid
premium(s),if any, falling due from the date of death and before the next policy anniversary.

The above grace period will also apply to rider premiums which are payable along with premium for base policy.
.

PART – D: CONDITIONS RELATED TO SERVICING ASPECTS

1. Proof of Age : The premiums having been calculated on the age of the Life Assured as declared in the Proposal, in case
the age is found higher than such age, without prejudice to the Corporation’s other rights and remedies, including those
under the Insurance Act, 1938, as amended from time to time ,the premiums shall be payable in such case at the rate
calculated on the Basic Sum Assured for the correct age at entry, and the accumulated difference between the premiums
for the correct age and the original premiums, from the commencement of the Policy upto the date of such payment shall
be paid to the Corporation with interest at such rate as fixed by the Corporation from time to time. However, in case the
Life Assured/Proposer continues to pay the premiums at the rates shown herein, and also does not pay the above
mentioned accumulated debt, the accumulated difference between the premiums for the correct age and the original
premiums from the commencement of this policy up to the date on which the Policy becomes a claim, with interest on
each instalment of such difference at such rate as may be fixed by the Corporation from time to time, shall accrue and be
treated as a debt due by the Life Assured / Proposer against the said Policy and shall be deducted from the Policy moneys
payable on the Policy becoming a claim.

Provided further that if the Life Assured’s correct age at entry is such as would have made him/her uninsurable under the
class or terms of assurance specified in the said Schedule hereto, the class or terms shall stand altered to such Plan of
Assurance as are granted by the Corporation according to the practice in force at the commencement of this policy subject
to the consent of the Policyholder, otherwise the policy will be cancelled.

2. Forfeiture and Non-forfeiture Regulations:

Forfeiture Regulations:

i. If less than two years’ premiums have been paid in respect of this policy and any subsequent premium be not duly
paid, all the benefits under this policy shall cease after the expiry of grace period from the date of first unpaid premium
and nothing shall be payable and the premiums paid thitherto are also not refundable.
ii. Forfeiture in Certain Other Events: In case any condition herein contained or endorsed hereon be contravened or in

LIC’s New Children’s Money Back Plan UIN: (512N296V02) Page 8 of 19

 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, then and in every such case this policy shall be void and
all claims to any benefit in virtue of this policy shall be subject to the provisions of Section 45 of the Insurance Act,
1938, as amended from time to time

Non-forfeiture Regulations:

If after atleast two full years’ premiums have been paid in respect of this policy and any subsequent premiums be not duly
paid, this policy shall not be wholly void, but shall subsist as a paid-up policy till the end of the policy term.

The Sum Assured on Death under paid–up policy shall be reduced to such a sum called “Death Paid-up Sum Assured”
and shall be equal to Sum Assured on Death multiplied by the ratio of the total period for which premiums have already
been paid bears to the maximum period for which premiums were originally payable In addition to the Death Paid-up Sum
Assured, the vested Simple Reversionary Bonus, if any shall also be payable on death

The Sum Assured on Maturity under paid-up policy shall be reduced to such a sum called “Maturity Paid-up Sum
Assured” and shall be equal to [(Sum Assured on Maturity plus total amount of Survival Benefits payable under the
policy) multiplied by the ratio of the total period for which premiums have already been paid bears to the maximum period
for which the premiums were originally payable] less total amount of Survival Benefits already paid under the policy(
including Survival Benefit which were deferred) i.e.[{(Sum Assured on Maturity + total amount of Survival Benefits
payable under the policy) * (the total period for which premiums have already been paid/ maximum period for which the
premiums were originally payable)} – total amount of survival benefits already paid under the policy (including Survival
Benefits which were deferred)]. In addition to the Maturity Paid-up Sum Assured, the vested Simple Reversionary Bonus,
if any shall also be payable on Maturity.

The Survival Benefits having already been incorporated in the calculation of Maturity Paid-up Sum Assured, future
Survival Benefits shall not be payable separately. However, if the option to defer the Survival Benefit(s) has been
exercised and payment of such Survival Benefit(s) which were due but have not yet been made, these increased Survival
Benefit(s) as specified in Condition 5 of Part C above shall be payable on the expiry of policy term or on death of Life
Assured ,if earlier.

A paid-up policy shall not be entitled to participate in future profits. However, the vested simple reversionary bonuses, if
any, shall remain attached to the paid-up policy.
Notwithstanding what is stated above, if atleast three full years’ premiums have been paid in respect of this policy, and any
subsequent premium be not duly paid, in the event of the death of the Life Assured within six months from the due date of
first unpaid premium, “Sum Assured on Death” along with vested simple reversionary bonuses, and final additional bonus
if any, will be paid after deduction of (a) the unpaid premium(s) for the base policy with interest thereon upto the date of
death, on the same terms as for revival of the Policy during such period and (b) the balance premium(s) for the base policy
falling due from the date of death and before the next policy anniversary. This provision shall not apply in case of death
due to suicide.

Notwithstanding what is stated above, if at least five full years' premiums have been paid in respect of this policy, any
subsequent premium be not duly paid, in the event of death of the Life Assured within 12 months from the due date of
first unpaid premium,” Sum Assured on Death” along with vested simple reversionary bonuses and final additional bonus
if any, after deduction of (a) the unpaid premium(s) for the base policy with interest thereon upto the date of death, on
the same terms as for revival of the Policy during such period and (b) the balance premiums for the base policy falling due
from the date of death and before the next policy anniversary. This provision shall not apply in case of death due to
suicide.
All of the above mentioned Non-forfeiture Regulations do not apply to optional rider as Rider does not acquire any paid up
value. The rider benefits cease to apply, if policy is in lapsed condition.

3. Revival of lapsed Policies: An Insurance Policy would lapse on non-payment of due premium within the days of grace. A
policy in lapsed condition may be revived during the life time of the Life Assured, but within the Revival Period and
before the Date of Maturity, as the case may be. The revival shall be effected on payment of all the arrears of premium(s)
together with interest (compounding half yearly) at such rate as may be fixed by the Corporation from time to time and on
satisfaction of Continued Insurability of the Life Assured and/or Proposer ((if LIC’s Premium Waiver Benefit Rider is
opted for) on the basis of information, documents and reports that are already available and any additional information in
this regard if and as may be required in accordance with the Underwriting Policy of the Corporation at the time of revival,
being furnished by the Policyholder/Life Assured/Proposer.

The Corporation, however, reserves the right to accept at original terms, accept with modified terms or decline the revival
of a discontinued policy. The revival of the discontinued policy shall take effect only after the same is approved, accepted
and revival receipt is issued by the Corporation.
Revival of rider, if opted for, will only be considered along with the revival of the Base Policy and not in isolation.

4. Surrender: The policy can be surrendered by the policyholder at any time during the policy term provided atleast two
full years’ premiums have been paid. On surrender of the policy, the Corporation shall pay the Surrender Value equal to
higher of Guaranteed Surrender Value and Special Surrender Value.

LIC’s New Children’s Money Back Plan UIN: (512N296V02) Page 9 of 19

 The Special Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to prior
approval of IRDAI.
The Guaranteed Surrender Value payable during the policy term shall be equal to the total premiums paid (excluding any
extra premiums, taxes and premiums for rider, if opted for) multiplied by the Guaranteed Surrender Value factor applicable
to total premiums paid and then reduced by any survival benefits already paid under the policy (including Survival
Benefits which were deferred). These Guaranteed Surrender Value factors expressed as percentage will depend on the
policy term and policy year in which the policy is surrendered and are contained in Annexure -5 of this Policy Document.
In addition, the surrender value of vested Simple Reversionary Bonuses, if any, shall also be payable, which is equal to
vested bonuses multiplied by the Guaranteed Surrender Value factor applicable to vested bonuses. These Guaranteed
Surrender Value factors will depend on the policy term and policy year in which policy is surrendered and is enclosed as
Annexure -6 to this document

In addition to the payable Surrender Value, if the option to defer the Survival Benefit(s) has been exercised and payment of
such Survival Benefit(s) which were due but have not yet been made, these increased Survival Benefit(s) (as specified in
Condition 5 of Part C above) shall also be paid.
No surrender value will be available on Rider, if any.

5. Policy Loan: Loan can be availed under the policy subject to the following terms and conditions, within the surrender
value of the policy for such amounts and on such further terms and conditions as the Corporation may fix from time to
time:

(i) Loan can be availed provided atleast two full years’ premiums have been paid.
(ii) The maximum Loan that can be granted shall be as under :

a. For in-force policies : upto 90% of Surrender Value

b. For paid-up policies : upto 80% of Surrender Value
(iii) The loan during the minority of the Life Assured can be availed by the proposer provided the loan is raised for the
benefit of the minor Life Assured.

(iv) The Policy shall be assigned absolutely to and held by the Corporation as security for the repayment of Loan and of
the interest thereon;

(v) Interest on Loan shall be paid on compounding half-yearly basis to the Corporation at the rate to be specified by the
Corporation at the time of taking loan under this policy. The applicable interest rate shall be based on the method
approved by IRDAI. The first payment of interest is to be made on the next Policy anniversary or on the date six
months before the next Policy anniversary whichever immediately follows the date on which the Loan is sanctioned
and every half year thereafter.

(vi) In the event of default in payment of loan interest on the due date as herein mentioned above, and when the
outstanding loan along with interest is to exceed the surrender value, the Corporation would be entitled to foreclose
such policies. Such policies when being foreclosed shall be entitled to payment of difference of surrender values and
the loan outstanding amount along with interest, if any.

(vii) Corporation is entitled to recover or recall the amount of the Loan with all due interest by giving 3 month notice.

(viii) In case the policy shall mature or become due for survival benefits or is surrendered or become a claim by death, the
Corporation shall become entitled to deduct the amount of the Loan or any portion thereof which is outstanding,
together with all interest from the policy moneys.

6. Termination of Policy:

The policy shall immediately and automatically terminate on the earliest occurrence of any of the following events:
a) The date on which lump-sum death benefit/final instalment of death benefit is paid; or
b) The date on which surrender benefits are settled under the policy; or
c) The date of maturity if settlement option is not exercised; or
d) On payment of final instalments under Settlement Option; or
e) In the event of default in payment of loan interest as specified in Condition 5 of Part D of this policy
document; or
f) On expiry of Revival Period if the policy which has not acquired paid up status, has not been revived within
the revival period; or
g) On payment of free look cancellation amount; or.
h) In the event of forfeiture as specified in Condition 2 (ii) of Part D of this Policy Document.

7. Free look period:

During the Free Look period of 15 days from the date of receipt of the Policy Document by the Policyholder, if the
Policyholder is not satisfied with the Terms and Conditions of the policy, he/she may return the policy to the Corporation
stating the reason of objections. On receipt of the same the Corporation shall cancel the policy and return the amount of
LIC’s New Children’s Money Back Plan UIN: (512N296V02) Page 10 of 19
 premium deposited after deducting the proportionate risk premium (for Base Policy and Rider, if opted for) for the period
of cover and charges for medical examination, special reports, if any and stamp duty.

8. Option to take Death Benefit in instalments:

This is an option to receive Death Benefit in instalments over the chosen period of 5 or 10 or 15 years instead of lump sum
amount under an in-force as well as paid-up policy. This option can be exercised by the Policyholder during minority of
the Life Assured or by Life Assured aged 18 years and above, during his/her life time; for full or part of Death benefits
payable under the policy. The amount opted for by the Policyholder/Life Assured (ie. Net Claim Amount including the
payment for the deferred survival benefits, if any) can be either in absolute value or as a percentage of the total claim
proceeds payable.

The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to
minimum instalment amount for different modes of payments being as under:
Minimum instalment
Mode of Instalment payment
amount
Monthly Rs. 5,000/-
Quarterly Rs. 15,000/-
Half-Yearly Rs. 25,000/-
Yearly Rs. 50,000/-

If the Net Claim Amount is less than the required amount to provide the minimum instalment amount as per the option
exercised by the Policyholder/Life Assured, the claim proceed shall be paid in lump sum only.

The interest rates applicable for arriving at the instalment payments under this option shall be as fixed by the Corporation
from time to time.

For exercising option to take Death Benefit in instalments, the Policyholder during minority of the Life Assured or the Life
Assured, if major, can exercise this option during his/her lifetime while in currency of the policy, specifying the period of
Instalment payment and net claim amount for which the option is to be exercised. The death claim amount shall be paid to
the nominee as per the option exercised by the Policyholder/Life Assured and no alteration, whatsoever, shall be allowed
to be made by the nominee.

9. Settlement Option (for Maturity Benefit):

Settlement Option is an option to receive Maturity Benefit in instalments over the chosen period of 5 or 10 or 15 years
instead of lumpsum amount under an in-force as well as paid-up policy. This option can be exercised by the Policyholder
during minority of the Life Assured or by Life Assured aged 18 years and above, for full or part of Maturity proceeds
payable under the policy. The amount opted for by the Policyholder/Life Assured (ie. Net Claim Amount including the
payment for the deferred survival benefits, if any) can be either in absolute value or as a percentage of the total claim
proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for subject to
minimum instalment amount for different mode of payments being as under:

Mode of Instalment payment Minimum instalment amount

Monthly Rs. 5,000/-
Quarterly Rs. 15,000/-
Half-Yearly Rs. 25,000/-
Yearly Rs. 50,000/-

If the Net Claim Amount is less than the required amount to provide the minimum instalment amount as per the option
exercised by the Policyholder/Life Assured, the claim proceed shall be paid in lumpsum only.

The interest rates applicable for arriving at the instalment payments under Settlement Option shall be as fixed by the
Corporation from time to time.
For exercising the Settlement Option against Maturity Benefit, the Policyholder/Life Assured shall be required to exercise
option for payment of net claim amount in instalments at least 3 months before the due date of maturity claim.

The first payment will be made on the date of maturity and thereafter, based on the mode of instalment payment
opted for by the policyholder, every month or three months or six months or annually from the date of maturity, as
the case may be.

After the commencement of Instalment payments under Settlement Option:

i. If a Life Assured, who has exercised Settlement Option against Maturity Benefit, desires to withdraw this option and
commute the outstanding instalments, the same shall be allowed on receipt of written request from the Life Assured. In
such case, the lump sum amount which is higher of the following shall be paid and policy shall terminate,
• discounted value of all the future instalments due; or
• (the original amount for which settlement option was exercised) less (sum of total instalments already paid);

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 ii. The interest rate applicable for discounting the future instalment payments shall be as fixed by the Corporation from time
to time.
iii. After the Date of Maturity, in case of death of the Life Assured, who has exercised Settlement Option, the outstanding
instalments will continue to be paid to the nominee as per the option exercised by the Life Assured and no alteration
whatsoever shall be allowed to be made by the nominee.

PART E

Not Applicable.

PART – F: OTHER TERMS AND CONDITIONS

1. a) Assignments: Assignment is allowed under this plan as per section 38 of the Insurance Act, 1938 as amended from
time to time. The current provisions of Section 38 are contained in Annexure-1 of this Policy Document.
The notice of assignment should be submitted for registration to the office of the Corporation, where the policy is
serviced.

b) Nominations: Nomination by the holder of a policy of life assurance on his/her own life allowed as per Section 39 of
the Insurance Act, 1938, as amended from time to time . The current provisions of Section 39 are contained in Annexure-2
of this Policy Document.
The notice of nomination or change of nomination should be submitted for registration to the office of the Corporation,
where the policy is serviced. In registering nomination the Corporation does not accept any responsibility or express any
opinion as to its validity or legal effect.

2. Suicide Exclusion:Notwithstanding the provision of benefits payable on death mentioned anywhere in this Policy
Document, the provisions related to claim payment in case of death due to suicide shall be subject to the conditions as
specified herein under:

i. If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of
commencement of risk, the Corporation will not entertain any claim under this policy except for 80% of the total
premium(s) paid excluding any taxes, extra premium, and rider premium if any, provided the policy is in-force. This clause
shall not be applicable in case age at entry of the Life Assured is below 8 years.
ii. If the Life Assured (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is
higher of 80% of the total premiums paid till the date of death (excluding any taxes, extra premium and rider premium if
any,) or the surrender value available as on date of death shall be payable. The Corporation will not entertain any other
claim under this policy. This clause shall not be applicable:
a) in case the age of the Life Assured is below 8 years at the time of revival; or
b) for a policy lapsed without acquiring paid-up value and nothing shall be payable under such policies.

The relaxation mentioned under Non-forfeiture provisions shall not be applicable in case of death due to suicide .

3. Tax: Statutory Taxes,if any,imposed on such insurance plans by the Government of India or any other constitutional
Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.
The amount of applicable taxes as per the prevailing rates shall be payable by the policyholder on premium (for base
policy and rider, if any) including extra premium, if any, which shall be collected separately over and above in addition to
the premiums payable by the policyholder.. The amount of tax paid shall not be considered for the calculation of benefits
payable under the plan.

4. Normal requirements for a claim:

(a) Death Claim:The normal documents which the claimant shall submit while lodging the claim in case of death of the Life
Assured shall be the claim forms as prescribed by the Corporation accompanied with original policy document, NEFT
mandate from the claimant for direct credit of the claim amount to the bank account, proof of title, proof of death,
medical treatment prior to death (if any), school / college / employer’s certificate, whichever is applicable, to the
satisfaction of the Corporation. If the age is not admitted under the policy, the proof of age of the Life Assured/proposer
shall also be submitted.

Within 90 days from the date of death, intimation of death along with death certificate must be notified in writing to the
office of the Corporation where the policy is serviced for any claims to be admissible. However, delay in intimation of
the genuine claim by the claimant, may be condoned by the Corporation, on merit, and where delay is proved to be for
the reasons beyond his/her control.
(b) Maturity/Survival benefits/Surrender Claim Where the policy results into maturity claim or results into a survival
benefits claim or in case of surrender of the policy, the Life Assured shall submit the discharge form along with the
original policy document, NEFT mandate from the claimant for direct credit of the claim amount to the bank account
besides proof of age, if the age is not admitted earlier.

In addition to above, any requirement mandated under any statutory provision or as may be required as per law shall also
be required to be submitted.
LIC’s New Children’s Money Back Plan UIN: (512N296V02) Page 12 of 19
 5. Force Majeure: In the event where the Corporation’s performance or any other obligations are 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 statutory
authority or any other circumstances that lie beyond the Corporation’s anticipation or control, the performance of this
policy shall be wholly or partially suspended during the continuance of such force majeure. The Corporation shall resume
its obligations towards the Policy as soon as the Force Majeure event ceases. The Corporation undertakes to keep the
IRDAI informed and seek prior approval before effecting any of these changes

6. Legislative Changes: The Terms and Conditions including the premiums and benefits payable under this policy are
subject to variation in accordance with the relevant Legislation & Regulations.

7. Benefit Illustration: Your customized Benefit Illustration is enclosed to this Policy Document.

PART – G: STATUTORY PROVISIONS

Section 45 of the Insurance Act, 1938:

The provision of Section 45 of the Insurance Act, 1938 shall be as amended from time to time shall be as applicable. The
current provisions are contained in Annexure-3 of this policy document.

Grievance Redressal Mechanism:

Of the Corporation
The Corporation has Grievance Redressal Officers at Branch/ Divisional/ Zonal/ Central Office to redress grievances of
customers. For ensuring quick redressal of customer grievances the Corporation has introduced Customer friendly Integrated
Complaint Management System through our Customer Portal (website) which is http://www.licindia.in, where a registered
policy holder can directly register complaint/ grievance and track its status. Customers can also contact at e-mail id
co_crmgrv@licindia.com for redressal of any grievances.

Claimants not satisfied with the decision of death claim repudiation have the option of referring their cases for review to
Zonal Office Claims Dispute Redressal Committee or Central Office Claims Dispute Redressal Committee. A retired High
Court/ District Court Judge is member of each of the Claims Dispute Redressal Committees.

Of IRDAI:
In case the customer is not satisfied with the response or does not receive a response from us within 15 days, then the
customer may approach the Grievance Cell of the IRDAI through any of the following modes:
• Calling Toll Free Number 155255 / 18004254732 (i.e. IRDAI Grievance Call Centre)
• Sending an email to complaints@irdai.gov.in
• Register the complaint online at http://www.igms.irdai.gov.in
• Address for sending the complaint through courier / letter:
Consumer Affairs Department, Insurance Regulatory and Development Authority of India,
Survey No.115/1, Financial District, Nanakramguda, Gachibowli, Hyderabad- 500032, Telangana.

Of Ombudsman:
For redressal of Claims related grievances, claimants can also approach Insurance Ombudsman who provides for low cost
and speedy arbitration to customers.

The Ombudsman, as per Insurance Ombudsman Rules, 2017, can receive and consider complaints or disputes relating to the
matters such as:
(a). Delay in settlement of claims, beyond the time specified in the regulations, framed under the Insurance Regulatory and
Development Authority of India Act, 1999;
(b). Any partial or total repudiation of claims by the life insurer, General insurer or the health insurer;
(c). Disputes over premium paid or payable in terms of insurance policy;
(d). Misrepresentation of policy terms and conditions at any time in the policy document or policy contract;
(e). Legal construction of insurance policies in so far as the dispute relates to claim;
(f). Policy servicing related grievances against insurers and their agents and intermediaries;
(g). Issuance of life insurance policy, general insurance policy including health insurance policy which is not in conformity
with the proposal form submitted by the proposer;
(h). Non-issuance of insurance policy after receipt of premium in life insurance and general insurance including health
insurance; and
(i). Any other matter resulting from the violation of provisions of the Insurance Act, 1938 or the regulations, circulars,
guidelines or instructions issued by the IRDAI from time to time or the terms and conditions of the policy contract, in so
far as they relate to issues mentioned at clauses (a) to (f)
Note: In case of dispute in respect of interpretation of these terms and conditions mentioned in this document, the English version
shall stand valid.

YOU ARE REQUESTED TO EXAMINE THIS POLICY, AND IF ANY MISTAKE BE FOUND THEREIN, RETURN
IT IMMEDIATELY FOR CORRECTION.

LIC’s New Children’s Money Back Plan UIN: (512N296V02) Page 13 of 19

 Annexure- 1
Assignment - As per Section 38 of the Insurance Act 1938

(1) A transfer or assignment of a policy of insurance, wholly or in part, whether with or without consideration, may be made only
by an endorsement upon the policy itself or by a separate instrument, signed in either case by the transferor or by the assignor or
his duly authorised agent and attested by at least one witness, specifically setting forth the fact of transfer or assignment and the
reasons thereof, the antecedents of the assignee and the terms on which the assignment is made.
(2) An insurer may, accept the transfer or assignment, or decline to act upon any endorsement made under sub-section(1), where it
has sufficient reason to believe that such transfer or assignment is not bonafide or is not in the interest of the policyholder or in
public interest or is for the purpose of trading of insurance policy.
(3) The insurer shall, before refusing to act upon the endorsement, record in writing the reasons for such refusal and communicate
the same to the policyholder not later than thirty days from the date of the policy-holder giving notice of such transfer or
assignment.

(4) Any person aggrieved by the decision of an insurer to decline to act upon such transfer or assignment may within a period of
thirty days from the date of receipt of the communication from the insurer containing reasons for such refusal, prefer a claim to the
Authority.

(5) Subject to the provisions in sub-section (2), the transfer or assignment shall be complete and effectual upon the execution of
such endorsement or instrument duly attested but except, where the transfer or assignment is in favour of the insurer, shall not be
operative as against an insurer, and shall not confer upon the transferee or assignee, or his legal representative, any right to sue for
the amount of such policy or the moneys secured thereby until a notice in writing of the transfer or assignment and either the said
endorsement or instrument itself or a copy thereof certified to be correct by both transferor and transferee or their duly authorised
agents have been delivered to the insurer:

Provided that where the insurer maintains one or more places of business in India, such notice shall be delivered only at the place
where the policy is being serviced.

(6) The date on which the notice referred to in sub-section (5) is delivered to the insurer shall regulate the priority of all claims
under a transfer or assignment as between persons interested in the policy; and where there is more than one instrument of transfer
or assignment the priority of the claims under such instruments shall be governed by the order in which the notices referred to in
sub-section (5) are delivered:
Provided that if any dispute as to priority of payment arises as between assignees, the dispute shall be referred to the Authority.

(7) Upon the receipt of the notice referred to in sub-section (5), the insurer shall record the fact of such transfer or assignment
together with the date thereof and the name of the transferee or the assignee and shall, on the request of the person by whom the
notice was given, or of the transferee or assignee, on payment of such fee as may be specified by the regulations, grant a written
acknowledgement of the receipt of such notice; and any such acknowledgement shall be conclusive evidence against the insurer
that he has duly received the notice to which such acknowledgment relates.

(8) Subject to the terms and conditions of the transfer or assignment, the insurer shall, from the date of the receipt of the notice
referred to in sub-section (5), recognize the transferee or assignee named in the notice as the absolute transferee or assignee
entitled to benefit under the policy, and such person shall be subject to all liabilities and equities to which the transferor or assignor
was subject at the date of the transfer or assignment and may institute any proceedings in relation to the policy, obtain a loan under
the policy or surrender the policy without obtaining the consent of the transferor or assignor or making him a party to such
proceedings.
Explanation – Except where the endorsement referred to in sub-section (1) expressly indicates that the assignment or transfer is
conditional in terms of subsection (10) hereunder, every assignment or transfer shall be deemed to be an absolute assignment or
transfer and the assignee or transferee, as the case may be, shall be deemed to be the absolute assignee or transferee respectively.
(9) Any rights and remedies of an assignee or transferee of a policy of life insurance under an assignment or transfer effected prior
to the commencement of the Insurance Laws (Amendment) Act, 2015 shall not be affected by the provisions of this section.
(10) Notwithstanding any law or custom having the force of law to the contrary, an assignment in favour of a person made upon
the condition that-

a. The proceeds under the policy shall become payable to the policyholder or the nominee or nominees in the event of
either the assignee or transferee predeceasing the insured; or

b. The insured surviving the term of the policy , shall be valid:

Provided that a conditional assignee shall not be entitled to obtain a loan on the policy or surrender a policy.

(11) In the case of the partial assignment or transfer of a policy of insurance under sub-section (1), the liability of the insurer shall
be limited to the amount secured by partial assignment or transfer and such policyholder shall not be entitled to further assign or
transfer the residual amount payable under the same policy.

LIC’s New Children’s Money Back Plan UIN: (512N296V02) Page 14 of 19

 Annexure- 2

Nomination - As per Section 39 of the Insurance Act 1938.

(1) The holder of a policy of life insurance on his own life may, when effecting the policy or at any time before the policy matures
for payment, nominate the person or persons to whom the money secured by the policy shall be paid in the event of his death:
Provided that, where any nominee is a minor, it shall be lawful for the policy holder to appoint any person in the manner laid down
by the insurer, to receive the money secured by policy in the event of his death during the minority of the nominee.

(2) Any such nomination in order to be effectual shall, unless it is incorporated in the text of the policy itself, be made by an
endorsement on the policy communicated to the insurer and registered by him in the records relating to the policy and any such
nomination may at any time before the policy matures for payment be cancelled or changed by an endorsement or a further
endorsement or a will, as the case may be, but unless notice in writing of any such cancellation or change has been delivered to the
insurer, the insurer shall not be liable for any payment under the policy made bona fide by him to a nominee mentioned in the text
of the policy or registered in records of the insurer.

(3) The insurer shall furnish to the policy holder a written acknowledgement of having registered a nomination or a cancellation or
change thereof, and may charge such fee as may be specified by regulations for registering such cancellation or change.

(4) A transfer or assignment of a policy made in accordance with Section 38 shall automatically cancel a nomination:
Provided that the assignment of a policy to the insurer who bears the risk on the policy at the time of the assignment, in
consideration of a loan granted by that insurer on the security of the policy within its surrender value, or its reassignment on
repayment of the loan shall not cancel a nomination, but shall affect the rights of the nominee only to the extent of the insurer’s
interest in the policy:
Provided further that the transfer or assignment of a policy, whether wholly or in part, in consideration of a loan advanced by the
transferee or assignee to the policyholder, shall not cancel the nomination but shall affect the rights of the nominee only to the
extent of the interest of the transferee or assignee, as the case may be, in the policy:
Provided also that the nomination, which has been automatically cancelled consequent upon the transfer or assignment, the same
nomination shall stand automatically revived when the policy is reassigned by the assignee or retransferred by the transferee in
favour of the policyholder on repayment of loan other than on a security of policy to the insurer.

(5) Where the policy matures for payment during the lifetime of the person whose life is insured or where the nominee or, if there
are more nominees than one, all the nominees die before the policy matures for payment, the amount secured by the policy shall be
payable to the policyholder or his heirs or legal representatives or the holder of a succession certificate, as the case may be.

(6) Where the nominee or if there are more nominees than one, a nominee or nominees survive the person whose life is insured,
the amount secured by the policy shall be payable to such survivor or survivors.

(7) Subject to the other provisions of this section, where the holder of a policy of insurance on his own life nominates his parents,
or his spouse, or his children, or his spouse and children, or any of them, the nominee or nominees shall be beneficially entitled to
the amount payable by the insurer to him or them under sub-section (6) unless it is proved that the holder of the policy, having
regard to the nature of his title to the policy, could not have conferred any such beneficial title on the nominee.

(8) Subject as aforesaid, where the nominee, or if there are more nominees than one, a nominee or nominees, to whom sub-section
(7) applies, die after the person whose life is insured but before the amount secured by the policy is paid, the amount secured by
the policy, or so much of the amount secured by the policy as represents the share of the nominee or nominees so dying (as the
case may be), shall be payable to the heirs or legal representatives of the nominee or nominees or the holder of a succession
certificate, as the case may be, and they shall be beneficially entitled to such amount.

(9) Nothing in sub-sections (7) and (8) shall operate to destroy or impede the right of any creditor to be paid out of the proceeds of
any policy of life insurance.

(10) The provisions of sub-sections (7) and (8) shall apply to all policies of life insurance maturing for payment after the
commencement of the Insurance Laws (Amendment) Act, 2015.

(11) Where a policyholder dies after the maturity of the policy but the proceeds and benefit of his policy has not been made to him
because of his death, in such a case, his nominee shall be entitled to the proceeds and benefit of his policy.

(12) The provisions of this Section shall not apply to any policy of life insurance to which Section 6 of the Married Women’s
Property Act, 1874, applies or has at any time applied;
Provided that where a nomination made whether before or after the commencement of the Insurance Laws (Amendment)
Act, 2015, in favour of the wife of the person who has insured his life or of his wife and children or any of them is
expressed, whether or not on the face of the policy, as being made under this Section, the said Section 6 shall be deemed
not to apply or not to have applied to the policy.

LIC’s New Children’s Money Back Plan UIN: (512N296V02) Page 15 of 19

 Annexure- 3

Section 45 as per the Insurance Act 1938 (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:
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.
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:-
(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 specially declares to be fraudulent.

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.

(3) 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:
Provided that in case of fraud, the onus of disproving lies upon the beneficiaries, in case the policyholder is not alive.
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.

(4) 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:
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:
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.
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.

(5) 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.

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 Annexure – 4

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 Annexure - 5

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 Annexure - 6

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