Handbook on Third Party Products

Handbook on

Third Party Products

Compiled by Staff College

10th January 2022
Disclaimer: This is our voluntary effort and every care has been taken to
give up-to-date information based on the RBI & Bank’s guidelines. However
users are advised to go through bank’s circulars & guidelines for details.

1
 Handbook on Third Party Products

Index

Sr. No. Content Page No.

1 Basic Concept of Life Insurance 03
2 Sampoorna Loan Suraksha 13
3. Union Rinn Suraksha 18
4. Union Health Suraksha 20
5. Group Critical Illness Insurance 22
Product
 Handbook on Third Party Products

LIFE INSURANCE

Basic Concepts of Life Insurance

What is life insurance?

Life Insurance is a financial product, which ensures that financial obligations
undertaken by us in the discharge of ordinary business of life are met for our loved
ones, with us or even in the adverse situation of our absence from this world!

Simply explained, life insurance provides a cover of a defined sum of money in the
event of an unfortunate demise of the person insured. This helps the affected family
mitigate the sudden financial loss suffered by them which is besides the immeasurable
emotional loss suffered by the family.

A person during his or her life span, experiences various life stages. In the process
financial needs keep on changing. Primarily the financial needs of an individual can
be broadly classified as under:

These are also referred to as the three cornerstones of financial security.

Protection is planning to ensure that obligations are met in the unlikely event of
death, disability or any kind of diseases.

Savings and Accumulation is developing a sound plan to assist, in paying for children's
education, marriage and settlement expenses or any other financial objectives that
customers have.
 Handbook on Third Party Products

And finally, retirement is planning to provide additional income needed to supplement

existing saving and investment plans.

When we talk about protection products, we are talking about insurance. When we
talk about accumulation products we are talking about insurance products, banking
products, mutual funds, stocks and bonds, gold and even real estate.

Finally when we talk about retirement, we are typically talking about insurance
products as in pension or annuities and other types of investments.

The key to financial planning is to achieve an appropriate balance among different

needs, which are, protection savings and accumulation and retirement, and therefore
looking at products that can be customized to meet customer specific needs.

Understanding Insurance

Asset Protection & Income Protection:

Insurance is concerned with the protection of the economic value of assets. Insurance
as a concept originated as a financial instrument designed to protect tangible assets.
Since every asset has a value, it is subject to risk and peril. There is a distinct
possibility that the asset may be destroyed or lost, resulting into sufferance of loss by
the owner of the asset. All assets which we possess, the house we live in, the car we
drive, our business assets, the products and services manufactured or sold by a
business person or an organization, have an assigned pecuniary value. The single most
important asset which we human beings possess is the capability of being able to make
a living in life! All other tangible and non-tangible assets are our creation. Our
capability to earn money gives us the confidence of managing and rearing a family.
Hence we have a responsibility to protect this single most important asset to ensure
our loved ones continue to get what we have provide for them, with us or without
us....

Hence there is a need to protect all our assets including the most important of them
which is our own Life!

Physical assets acquired by us may suffer various risks and perils viz.: fire,
earthquake, floods, tempest, inundation, theft, burglary or any such cause which may
result in the destruction or loss of value of the asset.

Insurance can be termed as an agreement by mutual consent between the insured and
the insurance company, which is enforceable by law, wherein the insurance company
promises to pay a certain sum of money, upon receipt of premium/s as consideration
for the policy contract on certain terms and conditions contained in the policy
contract. All insurance contracts in which the subject matter of insurance is human
life come under the purview of Life Insurance. All contracts of insurance other than
contract of human life are called general insurance or non- life insurance contracts.
 Handbook on Third Party Products

Three Questions which customers have in their minds?

I) Do I need Life Insurance?

Customers need life insurance to manage both planned and unplanned financial
needs...

II) If yes, then how much?

Protection needs for customers can further be sub classified as temporary

protection and permanent protection needs.

By temporary protection we mean the coverage for all borrowings, financial

obligations, loans or owing which a customer has undertaken or is likely to undertake.
That is to say the extent of insurance cover or the value of sum assured should at
least be for the aggregate amount of all loans outstanding (housing loans, personal
loans, family borrowings, credit card obligations, car loans, education loans or any
other loan undertaken) and the cover should last till the term or time period of all
such loans. For example if Mr. Rakesh Goyal who works for an MNC has undertaken a
housing loan for Rs. 80 lakh for a term of 20 years, a car loan of Rs 7 lakh for a term
of 5 years, a personal loan of Rs. 3 lakh for a term of 3 years. The recommended
amount of life insurance cover for taking care of temporary protection needs of Mr.
Rakesh Goyal would be a level term plan or a receding term plan for a sum assured of
Rs. 90 lakh for a minimum term of 20 years. This would ensure that the temporary
protection needs of Mr. Rakesh Goyal at the current point of time are adequately
 Handbook on Third Party Products

covered. God willing nothing untoward should happen to Mr. Rakesh Goyal, though in
the event of an unfortunate demise, all outstanding loans undertaken by him would
become immediately payable to the lenders by his grieving family members!

Permanent protection need refer to the needs of protecting the portion of income
which manages the household living expenses, other than the loan outgoes. Monthly
living expenses towards food, education of children, clothing, medicines,
communication, entertainment, fuel, electric consumption and all other such
expenses of maintaining the household are incurred month on month. Hence the
income supporting these expenses needs to be protected permanently.

For example the monthly household expenses for Mr. Rakesh Goyal’s family are Rs.
50,000 per month or Rs. 6 lakh p.a. Then what should be the amount which Mr. Goyal
should invest into a very safe fund which would yield him or his family Rs. 6 lakh p.a.
or Rs. 50,000 per month? Considering the current deposit rates at say 10% p.a. he will
need a sum of =Rs. 600000X100/10= 60 lakh. Accordingly a sum of Rs. 60 lakh if
invested in a safe fund which yields 10% annualized returns will ensure that Mr. Goyal
or his family receive Rs. 6 lakh p.a. or Rs. 50,000 p.m. to ensure continuity of living
expenses permanently. Alternatively Mr. Rakesh Goyal could consider taking a level
term insurance for Rs. 60 lakh sum assured to ensure peace of mind for his family’s
permanent protection needs. Since monthly living expenses may increase over a
period of time, basis financial need analysis and Mr. Goyal’s life stage analysis
permanent protection needs may be reassessed periodically.

Accordingly Mr. Rakesh Goyal needs Rs. 90 lakh of temporary protection and Rs. 60
lakh of permanent protection as per current liability and income protection as
assessed in the above example.

As far as Savings and Accumulation needs are concerned, all over the world people
are concerned about tomorrow. They hear stories about stock markets, interest rates,
inflation, their own employment, currency risks, and so on. All people want to do is
make sure they educate their children, make sure they are well settled and to have
that sense of security for tomorrow.

When we get into accumulation needs we must understand whether it is to save for
children's education, or for marriage of children, or for any other specific needs. Once
we determine that need, generally our recommendation is that we allocate in such a
way that 50% of that requirement is met by guaranteed products and the other 50%
could be contributed by variable products that gives our customers adequate returns
along with safety. The types of products that are appropriate for this are endowment
or money back plans from the traditional platform and ULIPs from the variable or non-
traditional platform.

Last but not the least the need for retirement. What are the basic needs of customers
post retirement?

1. Regular income to meet day to day expenses of living

 Handbook on Third Party Products

2. Corpus for emergency needs

3. A safe shelter where you can live on your own terms
4. Maintain the same standard of living as was enjoyed during the pre- retirement
days.

What makes Retirement planning so important today?

1. Increasing life expectancy

2. Inflation
3. Medical expenses for self & spouse
4. Decreasing working years
5. Breakdown of joint family
6. Spouse’s protection in old age
7. Pursuing your dream that you put aside while you were earning.
For retirement needs, pension plans or annuities products are recommended and are
suitable for the purpose.

Retirement funds planning:

Step 1: Estimating the age of retirement for the individual.

Step 2: Projecting the last annual income at the date of retirement.
Step 3: Projecting the number of years for which this income will be required by the
individual (based on expected longevity).
Step 4: Required retirement corpus = Result of Step 2 (Projected Income at the time
of retirement) X result of Step 3 (No. of years this income is required post retirement)

For example if Mr. Rakesh Goyal’s retirement age is 60 years. His projected annual
income at the date of retirement is say 30 lakh. Projected number of years post
retirement based on expected life span is say 20 years. Then the required retirement
corpus for Mr. Rakesh Goyal will be 30 lakh X 20 years= 60000000 or Rs. 6 crores.

III) What product/s will be suitable for my needs?

Life Stage Analysis

Financial needs of individuals change as per various life stages. Life stages change as
per age and assumption or completion of responsibilities or liabilities. Accordingly the
financial needs of a customer depend on the life stage analysis. Accordingly financial
Planning needs to be done as per the current life stage analysis of the customers.
Handbook on Third Party Products
Financial Needs Analysis

Financial needs analysis is the formal process of identifying customer needs,

quantifying customer needs and prioritizing customer needs. Following a structured
financial needs analysis process, life Insurance needs can be identified, quantified,
basis priority for the customer and available resources, products which satisfy such
identified and quantified needs can be recommended for helping customers make a
well informed buying decision.

LIFE INSURANCE: A BUSINESS OF

PROFESSIONAL ADVISING

Identify Quantify Prioritizing

Step 1: Identify Customer Goals

This involves getting to know what the customer cares about and what the customer
would like to achieve.
Step 2: Understand Customer’s Financial Situation
Identify customer’s financial resources and expenses.
Step 3: Analyze and Review Results
Develop the customer’s financial plan together.
Step 4: Discuss Recommendations
Discuss your plan and priorities.
Step 5: Act on Your Recommendations
Implement the financial plan for your customer based on the advice given as a life
insurance professional.
Step 6: Review the Progress
Check in periodically the needs of the customer based on changes in the life stage,
incomes and expenses to help the customer stay on track.

9
Advantages of Financial Needs Analysis:

By following a formal Financial Needs Analysis process, following benefits accrue to

the customer, to the company and the sales person:
Benefits to the customer:
1. Personal goals management
2. Path to Financial Freedom

Benefits to the company:

1. Credibility as a customer centric organization
2. Increased customer satisfaction leading to higher persistency hence higher
profitability
3. In a highly competitive market where there is hardly any difference between
products of competing companies the only difference will be the quality of
sales persons and the sales process followed by them

Benefits to the Sales Person:

1. Increased referral business
2. Higher variable income
3. Up sell and cross sell opportunity
4. Opportunity to convert transactional relationships to subscription relationships

Types of Life Insurance

1) Traditional Individual Plans:

Term Insurance Plan - It is a plan that provides protection cover to the insured. A
term insurance is a contract to pay a benefit (sum assured) on the death of the life
insured within the term of the contract. There is no maturity benefit available.
It provides protection against financial loss for dependents, at a lower premium
compared to endowment or whole life contracts. Alternative to level term insurance
is decreasing term insurance. Decreasing term insurance can be used to repay the
outstanding balance under a repayment of a loan and it can also provide income for
a family with children until such time as the children can fend for themselves.
Where policyholder is a corporate or a partnership firm, the contract can be used to
provide protection against financial loss that might arise on the death of the key
person within the organization (key man insurance)
Whole Life Insurance Plan - It is a plan that provides protection cover to the
insured. A whole life insurance is a contract to pay a benefit (sum assured) to the

10
death of the life insured whenever that might occur. It provides long term protection
for dependents.
Endowment Assurance Plan - It is a plan that provides savings cum protection cover
to the insured.
This plan pays death benefit if the insured dies during the term of the policy or pays
the maturity benefits if the insured survives entire tenure of the policy. Death and
Maturity benefit could be same or different.
Money Back - It is a plan that provides savings cum protection cover to the insured.
It also provides liquidity in the form of periodic return of money at specified time
periods within the term of the plan. (a certain % of sum assured/premium is returned
at regular intervals). So apart from death benefit and maturity benefit, survival
benefits (at different duration of the policy) are paid at different duration of the
policy.

Child Plan - It is a plan that provides savings cum protection cover to the insured.
Under this plan, premiums are payable by the parent to fund the child’s future
requirements like education and marriage expenses. In case of unfortunate death of
the parent during the term of the plan, the child’s future does not suffer as insurance
company continues the plan. The periodic benefits are generally payable to a child
when he/she attains the age milestones like say e.g. payments when attaining ages
18, 21 and 24. The death benefit is payable if the parent and/or child dies during
the term of the plan.

Savings cum protection plans are offered on non-participating and participating

platforms. Protection plans are offered on non-participating platforms.
In case of non-participating plans, all the benefits are defined in advanced and are
fixed throughout the term of the contract. In case of participating plans generally
the benefits are enhanced by declaration of bonuses by insurance companies every
year which are attached to the guaranteed benefits.

2) Traditional Group Plans

One Year Renewable Group Insurance Contracts - It provides life insurance cover
to a group of people as a single entity.
Like individual term insurance policy, this policy provides death cover to the
members. In case of employer-employee group, employer acts as a master
policyholder and the employees are covered for insurance. Death benefit can be
based on the employee’s salary, grade and the tenure of the employee in the
organization. This policy can also be offered to the affinity group such as clubs,
associations etc. wherein the members of the group are covered.

11
Annuity Plans - Annuity plans can be purchased by individuals from the proceeds/
maturity benefits of the pension plans or endowment plans. It can also directly be
purchased by the individual. The accumulated corpus under group superannuation
schemes can also be used to purchase the annuity plans. Typical options available
for immediate annuity plans are:
- Life annuity
- Life annuity with Return of purchase price
- Joint Life annuity
- Joint life last survivor annuity
- Life annuity for 5/10/15 years certain and life thereafter
- Increasing Life Annuity

3) Unit Linked Plans

Unit-linked plans operate by paying policyholder’s premiums into pooled investment

funds. The benefit payable at maturity depends on the performance of the
underlying assets and the level of charges levied by the insurance company.
The benefit on death might be, for example higher of sum assured and the fund
value.
The policyholder has choice of investing his premiums into different funds (ranging
from high investment risk to low investment risk) offered by insurance company.
All the invested premiums are converted into number of units and units are cancelled
in the form of charges. Typical charges in the unit linked funds are premium
allocation charge, administration charge, mortality charge, charge for cost of cover,
fund management charges, charges towards service taxes etc. Fund value at any
point in time is the product of Net Asset Value (NAV) and the number of units in the
funds. Here, the investment risk is essentially borne by the policyholder as fund
value depends on the performance of the funds chosen by the policyholder and it
fluctuates on a daily basis.
There are additional flexibilities of fund switching, partial withdrawals, premium
redirection, additional payment in the form of top-ups etc. The unit linked plans can
also be offered to group retirement benefit schemes.
Riders - Riders are additional optional benefits that can be attached to the base
insurance policy. The advantage of rider to the customer is that he gets cover as
defined in the rider at a cheaper rate compared to a standalone policy with the same
type of cover.
Typical riders available in the market are -
- Term Rider
- Accidental Death Benefit Rider
- Accidental Death, Disability and Dismemberment Benefit Rider
- Critical Illness Benefit Rider
12
 Sampoorna Loan Suraksha
SUD Life New Sampoorna Loan Suraksha
(Information Circular No:05358-2020 dated 16.11.2020)
Parameter Value
Nature of Product A single Premium Group Assurance plan offering protection under
different benefits to the borrower of all types of Loans, new as
well as existing borrowers.
Master Policy Union Bank of India
Holder
Eligibility Any loan borrower who
• Is between 14 years ( for education loan) / 18 years (for
any other loan) and 65 years old (as of last birthday)
• Is in good Health and not suffering from any serious illness
• Signs the New Sampoorna Loan Suraksha member
enrolment form electronically/ physically
Premium mode Single premium, payable in advance to SUD Life, however the
bank may fund the premium with the loan amount (for home loan
& education loan only) and SUD life will cover the total loan
sanctioned.
GST GST @ 18%
The GST will be revised as per government directives

Bank Staff Discount Staff members of the Master Policy holder i.e Bank officials and
their family members (Parents, Spouse, Children and Siblings) are
eligible for a discount og 5% on the applicable premium.
Entry Age &
coverage Age Benefit Option Loan Type Minimum Entry Age
Life Cover only Education Loan 14 years
Other than 18 years
Education Loan
Life Cover + ADB/ All Loan types 18 years
AATPD/ ACI
Benefit Option Maximum Entry Age
Life Cover Only 70 years
Life Cover+ ADB/ AATPD/ACI 65 years
Benefit Option Maximum Maturity
Age
Life Cover Only 76 years
Life Cover+ ADB/ AATPD/ACI 70years
• Age of entry-last birthday
• Maximum Coverage Age –last birthday
Policy Term Benefit Minimum Maximum ACI Benefit
Option policy term Policy term Term
Life Cover 3 months 30 years NA
only

13
 Life Cover 2 years 20 years Equal to
+ACI policy Term
6 years 30 years 5 years
11 years 30 years 10 years
Life cover + 2 tears 30 years NA
AATBD/ ADB

Policy term= Moratorium Period + Repayment Period

Moratorium Period Minimum : 6 months
Maximum : 84 months
( in multiple of 6 months only)
Maturity amount No maturity amount is applicable as this is a pure term product
Premium Payment Single Premium
Interest rate Minimum 7%
Maximum 18%

Premium calculation will be based on 7% interest for all loans

which have interest rate 7% or lower and similarly the premium
rates pertaining to 18% loan interest will be applicable for all
loans having interest rate of 18% or higher.

Even if interest rates vary during the policy term, the benefits
payable will continue to be based on the loan schedule generated
at the inception of the insurance contract in respect of each
individual member
Sum Assured Minimum Initial Sum Assured:
Reducing Cover : 25000
Level Cover L: 5000

Maximum Initial Sum Assured

As per maximum initial Sum Assured mentioned in the table
below or equivalent to sanction limit for new loan outstanding in
case of existing loans whichever is lower
Benefit Options Maximum Initial Sum Assured
Life Cover only 200 Crore
Accelerated Critical Illness 0.50 Crore
(ACI)
Accelerated Accidental Total 1.00 Crore
& Permanent Disability
(AATPD)
Accidental Death Benefit 1.00 Crore
Coverage type 1. Reducing cover : (Monthly Reducing Term Assurance)
➢ Reducing cover is available for all types of Term loans
➢ Under this coverage type, the benefit amount payable will
be equal to the amount outstanding at the beginning of the
policy month in which the ensured event (death, critical
illness and total & permanent disability) occurs.

14
 ➢ The amount outstanding will be as per the cover schedule
given along with the Certificate of Insurance irrespective of
the actual loan outstanding

2. Level Cover:
➢ Level cover is available for all types of Term loans,
overdraft, cash credit & other facilities.
➢ Under this cover type, the benefit amount payable
throughout the coverage term will be equal to initial sum
assured selected at the inception of the policy.
➢ Level Cover option is provided for all the loans including
interest only loan to provide more protection to the insured
member and his/her dependents.
Initial Sum assured 1. Reducing Cover:
➢ In the case of insured event, a sum assured will be payable
equal to the loan amount outstanding as on date of death as
per the loan schedule printed on the back side of COI. The
sum assured payable will be irrespective of the actual EMI
payment.
The initial Sum Assured would vary as under:
➢ Existing Borrower: In case the borrower has already taken a
loan (with complete disbursement) prior to to opting for
insurance, the initial sum assured is the actual loan
outstanding as on date of commencement of the risk.
➢ New Borrower: In case the borrower is taking a new loan or
account already opened with pending disbursement, the
sanction limit of the loan amount needs to be covered.
2. Level Cover
➢ The Sum assured will be uniform throughout the policy term.
Also, the Sum Assured cannot exceed the loan limit/
sanctioned limit.

Moratorium Option The plan also provides life cover during the Moratorium period, if
any under reducing life cover option only, as per the following
options chosen by the Insured Member.
Moratorium Option 1 –Interest is paid by the borrower during the
moratorium period:
In this case, the sum Assured will be equal to the Initial Sum
Assured throughout the moratorium period. After the moratorium
period, Sum Assured will decrease during the outstanding term
(total term of policy minus moratorium period) of the policy as
per cover schedule issued by SUD Life
2- Moratorium Option-Interest is not paid by the borrower during
the moratorium period:
In this case, the Sum Assured will increase during the moratorium
period and will be equal to the Initial Sum Assured plus the
accrued interest during the moratorium period. After the
moratorium period, the Sum Assured will decrease during the

15
 outstanding term (policy term less moratorium period) of the
policy as per cover schedule/s issued by SUD Life.
Moratorium period is allowed for 6 months to 7 years. If the
moratorium period is not in the exact multiple of 6 months, the
moratorium period shall be rounded up to the next multiple of 6
months.
Benefits Options The plan provides for base Life Cover benefit along with various
additional benefit option as below:
Benefit Option Benefit Payable
Life Cover only Reducing Cover
Level Cover
Life Cover + Accelerated A : Critical Illness
Critical Illness Benefit (Life • Reducing Cover
Cover + ACI) • Level Cover
B: Death Benefit
Life Cover plus Accelerated A: Accidental Total &
Accidental Total & Permanent Permanent Disability (ATPD)
Disability Benefit
(Life Cover + AATPD) • Reducing Cover
• Level Cover
B : Death Benefit
Life Cover plus Accidental Accidental Death Benefit
Death Benefit • Reducing Cover
(Life Cover +ADB) • Level Cover
Life Cover plus Accelerated A .Total & Permanent
Accidental Total & Permanent Disability (TPD) benefit
Disability plus Accidental • Reducing Cover
Death Benefit • Level Cover
B. Accidental Death Benefit
• Reducing Cover
• Level Cover
C. Death Benefit
Risk Cover The risk cover will be the same for reducing Cover & Level
Cover as below:

Single Life: Outstanding loan amount in case of death of the

insured borrower as specified in the Certificate of Insurance
against the month of the death.

Joint Borrower: Two joint borrowers will be allowed. There are

two choices available for the joint borrowers:
• Each borrower can be insured for entire loan amount.
• Each of the joint borrower is insured up to his/ her share
of loan
Date of Risk The risk will commence from the date of acceptance of the
Commencement Membership from SUD Life subject receipt(including extra
premium if any)

16
Nomination Nomination is allowed as per section 39 of insurance act 1938 as
amended from time to time.
Termination of Policy shall terminate on the occurrence of earliest of
Policy following:
➢ On the expiry of Policy term.
➢ On death of insured member/s.
➢ On occurrence of critical illness upon payment of the CI
benefit, provided initial sum assured on ACI is equal to
initial sum assured on death all to initial sum assured on
death
➢ On surrender of the cover, upon payment of applicable
surrender value benefit
➢ On the date of payment of free look cancellation
Free Look Period A period of 15 days will be available to the Insured Member
from the date of the receipt of the certificate of Insurance to
review the terms and conditions of the cover. In case the
insured Member disagree to any of those terms or conditions,
he/she has the option to return the certificate of Insurance
stating the reason for his/ her objection. The Insured member
shall be entitled to a refund of the amount equal to:
• Premium
• Less proportionate risk premium for the period cover
• Less expenses incurred by the company on medical
examination of the proposer if any
• Less stamp duty charges
Surrender value In case of an emergency / contingency, the borrower can
surrender the policy anytime during the Policy Term. Surrender
Value is available at any point of time from the start of the
cover.
Tax Benefit • This product is eligible for tax exemption u/s 80C as per
new government laws
• Death benefit is tax free u/s 10 (10D)
Medical Criterial As per the sum Assured, age of the borrower and the type
of the loan, medical grid is referred for underwriting
decision.
Certificate of SUD Life upon receipt of application form, will reconcile
Insurance the premium collected and underwrite the proposal and
upon acceptance of risk will issue the certificate of
Insurance(COI)
Exclusion In case insured borrower commits suicide within 12
months, then nominee/ beneficiary shall be entitled to
80% of the premium paid (excluding taxes, if any)
provided policy is in force

17
 Union Rinn Suraksha Scheme
Information Circular No: 5312-2020 dated 30.06.2020
Parameter Value
Purpose Union Rinn Suraksha plan of Religare Health Insurance Ltd with
enhanced coverage on personal accidental & disability benefit,
accidental hospitalization, EMI coverage of all loan customers who
avail loan form our bank.
• A comprehensive loan attachment product to secure the loan of
customers
• Accidental Death Coverage – 5 lac / 10 lac
• Permanent Total & Partial Disability coverage for 10 / 20 lac
• Accidental Hospitalization benefits up to 1lac /2lac
• Comprehensive Hospitalization benefits up to 50,000.
• EMI Benefits – Fixed benefits on account of hospitalization
ranging from 10000 to 30000.
• Child Education benefits.
Eligible Borrowers for all types of loans.
Individuals
Features Particulars Plan 1 Plan 2
Coverage Details
Sum Insured Rs.5 Lakhs Rs.10 Lakhs
Cover Type Individual Individual
Entry Age (Min) 18 years 18 years
Entry Age 70 years 70 years
(Max)
Exit Age Lifelong* Lifelong*
Claims In – house In – house (Religare Health)
Servicing (Religare Health)
Membership Loan Customers of Loan Customers of our Bank
Union Bank of
India
Policy Tenure Up to 5 years Up to 5 years
Claim payment Re-imbursement Re-imbursement
method
Benefits Under Particulars Plan 1 Plan 2
the Plan Accidental Equals to SI Equals to SI
Death
PTD Up to 2 times of SI Up to 2 times of SI
(as per PTD (as per PTD Table1)
Table1)
PPD Up to 2 times of SI Up to 2 times of SI
(as per PPD (as per PPD Table2)
Table2)
Child Up to 10% of SI Up to 10% of SI
Education
18
Accidental Rs.100000 Rs.200000
Hospitalization
Comprehensive Rs.50000 Rs.50000
Hospitalization
(Smart Hospi-
care)
EMI Cover (for >3 Days and <=8 >3 Days and <=8 Days:
All Days: Fixed Fixed Benefit= Rs.10000
Hospitalization Benefit= Rs.10000 >8 Days and <=13 Days:
) >8 Days and <=13 Fixed Benefit= Rs.20000
Days: Fixed >13 days:
Benefit= Rs.20000 Fixed Benefit=Rs.30000
>13 days: Fixed
Benefit=Rs.30000

19
 Union Health Suraksha
(Information Circular No 5289-2020 dated 02.05.2020)
Union Health Suraksha Scheme Mediclaim plan has been launched by bank in
association with Religare Health Insurance CO LTD.
Coverage Details
Sum insured (SI) 3L/4L/5L/7L/10L
in Rs
Cover type Floater for family of up to 40 members;
Option to include parents
Relationship Self, Spouse, Children, Parents
covered
Entry age limit Adult: 18-70 years; Child : 91 days to 24 years
Exit Age Lifelong
Age of the 18 years & above
Proposer
Policy tenure 1 year
Underwriting No Pre policy Medical Test; Tele-UV applicable for members above
Rule age 50 years and PED declaration
Claims pay-out Cashless (within network) / Re-imbursement
Claims Servicing In house
Benefits
Hospitalization Up to Sum Insured
Expenses
-In patient
Day Care
Treatment
Pre and Post 30 days and 60 days
hospitalization
Ambulance Cover Up to Rs. 2500 per hospitalization
Organ Donor Up to Sum Insured
Cover
Domiciliary Up to Sum Insured, for period exceeding 3 consecutive days
Hospitalization
Annual Health Every Year for all members
Check-up
Alternative Up to Rs 50000
Treatment (IPD)
Basis
Second Opinion Covered
Doctor on Call Covered
Health Risk Covered
Assessment
Personal Accident for Primary Member
Accidental Death 100% of SI
Permanent total Up to SI per PTD Table
Disablement
20
Permanent Up to SI as per PPD Table
Partial
Disablement
Optional Benefits(On payment of Extra Premium
Parental Available up to 5 Lakh SI
Coverage on
Floater basis
Major Diagnostic Covered up to Rs 20000
Cover
Double Sum Additional 100% of Sum Insured for all Family Members
insured for
Accidental
Hospitalization
Wait Periods
30 Days Yes (except emergency accident)
Named Ailment 24 months
Pre-existing 24 months
diseases
Sub Limit
On room rent 1% of SI per day for up to 4 Lakh/ Single Private Room for 5 Lakhs
and above
ICU charges 2% of SI per day

21
 Group Critical Illness Insurance Product
(Information Circular No 5569-2021 dated 19.06.2021)
Coverage Details
Eligible Retail Loan Borrowers of the bank which include Home loan, Vehicle
Customers loan , Mortgage loan , Personal loan and Education loan
Sum Assured Policy sum assured options are Rs.1 lakh to Rs.30 lakhs (In multiples
of Rs.1 lakh). Sum assured would be round up of loan amount to
nearest option, to ensure that the loan amount is adequately
covered (subject to maximum Rs.30 lakhs)
Policy Type Policy is Individual
Policy Term Policy Term option shall be 1 Years to 5 Years
Policy The product has assignment clause which means that the policy
Assignment benefits would be assigned in favour of the bank. In case of claim,
the policy benefits would be paid in loan account of the borrower
and balance of claim amount, if any, would be paid to the nominee
of the policy.
Certificate of Certificate of Insurance (COI) would be sent to the borrower as well
Insurance as respective bank branch for record keeping in the loan file for
future use.
Product Term & Benefits
Membership Retail loan customers of the bank (Home loan, Vehicle loan ,
Mortgage loan , Personal loan and Education loan)
Sum Insured Rs.1 lakh to Rs.30 lakhs (In multiples of Rs.1 lakh)
Covered Type Group critical illness cover-benefit cover
Relationship Individual
Covered
Entry Age Limit 18 to 60 years
Exit Age UP to loan tenure
Policy Tenure 1,2,3,4,5 years
Underwriting rule Any pre-existing ailment directly related to the 30 listed critical
ailment will be considered as PED
Claims Pay out Claim will be paid on occurrence of critical illness covered, subject
to Terms & Conditions
Benefits
Coverage 30 listed critical illness
Medical second Included
opinion
Wait Periods
Critical illness 90 days
waiting period
Survival Period 30 days
Policy renewal The policy can be renewed maximum only up to loan tenure
Claim process Claim will be on diagnosis basis as this is a “Benefit” product.
Documents required to be submitted is as below

1) Duly completed and signed claim form in original

22
2) Medical certificate confirming the diagnosis of critical illness
3) Discharge certificates/ card from the hospital if any
4) Investigation test reports confirming the diagnosis
5) First consultation letter and subsequent prescriptions
6) Indoor case paper, if applicable
7) KYC documents
8) Any other document as may be required by insurer on case to
case basis

23