Insurance Plans India 835 views August 12, 2021

HDFC SL Sarvgrameen Bachat Yojana is a micro-insurance plan for rural customers by which they can secure the future of their family in case of their death. This single premium plan of INR 200 comes with some other benefits too. Read this page further and know more about the HDFC SL Sarvgrameen Bachat Yojana benefits.

HDFC SL Sarvgrameen Bachat Yojana Benefit

You’ll get the following benefits under this plan.

On Maturity

Upon survival till the maturity date, the insurer pays a maturity benefit of INR 300.

On Death and Surrender

In case of death before the end of the policy term, the insurer pays a death benefit of INR 5,000 to the nominee. Whereas, if you surrender the policy before maturity, the insurer shall pay a surrender value of INR 200.

Tax Benefits

Tax benefits are available on your premium amount and payable benefits under Section 80C and 10 (10D) of the Income Tax Act, 1961, respectively. These benefits are subject to changes in the tax laws.

Nomination Under HDFC SL Sarvgrameen Bachat Yojana

You can nominate a person or persons to whom the death benefit shall be paid in the event of your death. If the nominee is a minor, you need to appoint any person to receive the money secured during the minority of the nominee. The nomination can be made before the maturity of the policy. You can cancel or change the nominee before the policy matures.

You need to send the notice for change or cancellation of nomination to the insurer in writing. Otherwise, the insurer will not be liable if a bonafide payment is made to the person named in the text of the policy or as it is registered in the records of the insurer. A fee needs to be paid to the insurer for registering change or cancellation of a nomination as specified by the Authority through Regulations.

In case of a transfer or assignment per Section 38, the nomination shall automatically be cancelled except in case of assignment to the insurer or other transferee or assignee for purpose of loan against security or its reassignment. In such a case, the nomination will not get cancelled to the extent of the insurer’s or transferee’s or assignee’s interest in the policy. The nomination will be revived on repayment of the loan.

Suicide Clause

The insurer shall refund 80% of the paid premiums in case of death of the life assured due to suicide within one year from the date of cover commencement.

Free Look Period

You’ll get a free look period of 15 days from the date of receipt of the policy to review the terms and conditions. If the policy is purchased through distance marketing, the free look period is 30 days. In case you do not agree to any policy terms and conditions, return the same stating the reasons. On receipt of your cancellation letter along with the original policy documents, the insurer shall refund your paid premium after a deduction of the proportionate risk premium for the period on cover and stamp duty charges (if any).

Note: Once you return the policy, it cannot be revived, reinstated or restored, and a new proposal needs to be made for a policy.

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