Insurance Plans India 151 views October 12, 2021

HDFC Ultra Loan Shield provides coverage to the members of an organization/company for the credit they avail. The plan comes with the following features to take note of.

  • Financial protection in case of death, disability and critical illnesses
  • Offers Life & Health Cover Option
  • Single-premium Payment Option
  • Cover for Single & Joint Life
  • Cover for top-up loans
  • Cover for a few EMIs in case of hospitalization

Continue reading this page and learn more about these and other benefits of the HDFC ERGO Ultra Loan Shield.

HDFC ERGO Ultra Loan Shield Base Cover

You can choose coverage from the following two options –

Life Variant

You can avail of the death benefit in two types:

Level: Here, the sum assured stays the same as proposed at inception.
Decreasing: The sum assured decreases based on the insured member repayment schedule.

This variant covers both single or joint life if there is insurable interest between the joint lives. Individual borrowers and investors, co-borrowers or co-investors of the institution can also be covered under this plan.

Upon death, disability, critical or terminal illness of the insured member, a lump sum shall be payable as per the option chosen by the member at inception. Whereas, in the case of lender-borrower schemes under Regulated Entities, the outstanding loan amount, if any, shall be payable to the master policyholder, subject to authorization from the insured member at inception. Otherwise, the same shall be payable to the nominee.

Note – The membership of the insured shall terminate upon the payment of the Death Benefit to the nominee or beneficiary. Coverage under life cover ranges from 2 to 30 years. The minimum sum assured per member is INR 1,000.


If you choose the health cover, the insured members get coverage against the following –

  • Accidental Death Benefit
  • Permanent Total Disablement

In case of the insured member’s death within 365 days from the date of the accident, the insurer shall pay the following –

For Static Sum Insured – 100% of the disbursed loan amount
For Reducing Sum Insured – 100% of the principal outstanding

However, in the case of borrower and co-borrower loans, the following coverages shall apply.

Both borrower and co-borrower are covered for 100% of the disbursed loan amount and the policy shall terminate for both in case of a death claim.
Both borrower and co-borrower are covered for a proportion of the loan amount. So, the policy shall terminate only for the insured member who is dead and the surviving member gets coverage up to the extent of his/her proportion of the loan amount.

If the accident results in permanent total disability of –

  • Each arm at the shoulder joint
  • Each leg above the center of the femur
  • Each arm to a point above elbow joint
  • Each leg up to a point below the femur
  • Each arm below the elbow joint
  • Each hand at the wrist
  • Each eye
  • Each leg to a point below the knee
  • Each leg up to the center of the tibia
  • Each foot at the ankle

Or temporary disablement prevents the insured from performing every duty, the company shall pay the loan EMIS for up to 3, 6, 9 or 12 months.

Note – Coverage under this option ranges from 1 to 5 years (in multiple of 1 year). And you can renew the policy if there is a loan outstanding. The minimum sum assured per member is INR 10,000.

HDFC ERGO Ultra Loan Shield Optional Benefits

The insurance company shall provide you the following optional benefits as per your chosen base cover –

For Life Cover

Below are the optional benefits available under the Life Cover variant of this plan

  • Additional Accidental Death Benefit
  • Accelerated Terminal Illness Benefit
  • Accelerated Critical Illness Option 1
  • Accelerated Critical Illness Option 2
  • Accelerated Total Permanent Disability

For Health Cover

  • Critical Illness Benefit
  • Permanent Partial Disablement
  • EMI Cover

Member Eligibility Criteria for HDFC ERGO Ultra Loan Shield

The insured member shall get the HDFC ERGO Ultra Loan Shield Benefits if they meet the following criteria –

Minimum Group Size – 50 Members
Minimum Age at Entry – 18 years
Maximum Age at Entry – 65 years

Free Look Period

You have a free look period of 15 days from the date of receipt of this policy to review the terms and conditions. And if you have purchased the policy through Distance Marketing mode, the free look period is 30 days. If you disagree with the terms and conditions and cancel the policy, the company shall refund the paid premium after a deduction of the proportionate risk premium for the period on the cover, medical examination charges (if any) and stamp duty (if any).

Note – You are not allowed to cancel any coverage individually. Any application for cancellation during the free look period shall cancel this policy entirely.

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