Indian Insurance

Birla Sun Life Insurance Company Limited is a joint venture between The Aditya Birla Group, one of the largest business houses in India and Sun Life Financial Inc., a leading international financial services organisation. The local knowledge of the Aditya Birla Group combined with the expertise of Sun Life Financial Inc., offers a formidable protection for your future.

The Aditya Birla Group has a turnover of close to Rs. 119000 crores, with a market capitalisation of Rs. 133875 crores (as on 31st March 2008). It has over 100,000 employees across all its units worldwide. It is led by its Chairman – Mr. Kumar Mangalam Birla. Some of its key companies are Hindalco, Grasim and Aditya Birla Nuvo.

Sun Life Financial Inc. and its partners, have operations in key markets worldwide. These include Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. Sun Life Financial Inc. has assets under management of over US$404.7 billion (as on 31st March, 2008). It is a leading performer in the life insurance market in Canada.

Birla Sun Life Insurance (BSLI) has been operating for 7 years. It has contributed significantly to the growth and development of the life insurance industry in India. It pioneered the launch of Unit Linked Life Insurance plans amongst the private players in India. It was the first player in the industry to sell its policies through the Bancassurance route and through the Internet. It was the first private sector player to introduce a Pure Term plan in the Indian market. BSLI has covered more than 2 million lives since it commenced operations. And its customer base is is spread across more than 1500 towns and cities in India. The company has a capital base of Rs. 1274.5 crores as on 31st March 2008.

“we”, “us”, “our”, “insurer”, “BSLI” or “the company” will refer to Birla Sun Life Insurance Company Limited, or any of its successors.

“Group” denotes the group of people covered by the policy

“Member” means an individual eligible for a cover under this policy

“Contributions” means the payment made by the policyholder in respect of members covered under this policy from time to time and includes past service contribution.

At the inception of the scheme the policyholder shall pay BSLI a contribution pertaining to the past service in respect of the members or transfer the existing fund to BSLI. This contribution may come in one or more installments. The policyholder may also pay regular contributions into the fund.

Any contributions received will be converted into units for each account and tracked separately. The contributions can be invested in one or more of BSLI funds as per the policyholder’s request. All contributions should be paid to BSLI with relevant details with respect to account and investment fund allocation.

The policyholder may specify the number of accounts he wants to maintain the fund in. Contributions will be invested account wise, and fund value will be tracked for each account separately. The policyholder may want to manage the policy with multiple accounts if he wants to maintain separate fund for each member (e.g. defined contribution schemes) or separate fund by his office units (e.g. unit /zone-wise schemes).

New accounts can be opened at any time by making fresh contributions specified at the time of payments.

At the inception of the scheme the policyholder can choose to protect the purchase NAV of each unit by opting for the Unit Value Protection feature. This protection shall then apply to the overall scheme (i.e. to all accounts under the policy). The policyholder can choose the minimum period for protection as 3 or 5 years. With the Unit Value Protection feature, any unit redeemed for the purpose of a benefit payout is guaranteed to be worth no less than its purchase NAV provided the unit has been purchased at least 3 or 5 years prior to its redemption. For the purpose of this feature, unit redemption will be based on a First-In-First-Out (FIFO) basis. The Unit Value Protection feature does not apply upon the surrender of the policy.

The contributions can be made yearly, half yearly, quarterly, monthly or in single lump sum. The policyholder can change the level of contribution and the frequency of the contribution at any point of time.

We will take a fund management charge from the funds. This charge will be taken on a daily basis and incorporated into the unit prices for each fund. The current fund management charge is 1.0% per annum for all funds, except for the Growth Multiplier Fund at 1.25% p.a. The fund management charge can be increased by us at any time (subject to IRDA approval) upto 1.50% p.a.

For policies with less than 10 accounts, the policy administration charge is nil. Otherwise, the policy administration charge is Rs. 50 per account subject to a maximum of Rs. 50,000 for the policy in total. This charge is levied on each policy anniversary by canceling units from each fund in proportion to their value at that time. BSLI will issue one fund value statement per account per year free of cost. Additional statement requests will be charged Rs. 50 per statement per account.

Nil.
If the policy has taken an extra initial allocation, then there will be a surrender charge applicable only on the extra initial allocation taken. These charges are guaranteed through out the policy term.

No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer.

No policy of life insurance effected after the coming into force of this act shall, after the expiry of two years from the date on which it was effected be called in question by an insurer on the ground that statement made in the proposal or in any report of a medical officer, or referee, or friend of the life insured, or in any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose.

Provided that 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 application.

Insurance is the subject matter of the solicitation. The policy is underwritten by Birla Sun Life Company Ltd. This is a non- participating plan. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of the fund and factors influencing the capital market and the insured is responsible for his or her decision. Birla Sun Life is only the name of the Insurance Company and Birla Sun Life Insurance Group Unit Linked Insurance Plan , Fixed Interest Fund, Bond Fund, Gilt Fund, Money Market Fund, Secure Fund, Stable Fund, Growth Advantage Fund, Growth Multiplier Fund, Growth Index Plus Fund are only name of the unit linked life insurance contract and funds and does not in any way indicate the quality of the contract, its future prospects or returns. This brochure contains the salient features of the plan. For further details please refer to the policy contract. Tax benefits are subject to changes in the tax laws. BSLI reserves the right to recover any statutory levies such as the service tax levied by the authorities on insurance transactions. The charges mentioned above are applicable to all the 9 Investment fund options offered at present. All the policy charges can be modified by the company subject to approval of the IRDA. The value of the investment fund reflects the value of the underlying investment. These investments are subject to market risks and change in fundamentals such as tax rates etc. effecting the investment portfolio. For more details and clarification call your BSLI Insurance Advisor or visit our website and see how we can help in making your dreams come true.

The day on which the units are allocated will be governed by the unit allocation rules. These rules will specify which day’s unit prices should be used for the contributions made on certain day and time. Redemption of units will be effected at NAV declared on the date the request is received and accepted at the company’s office before 3:00 pm and on the next NAV declared if the request is received and accepted at the company’s office after 3:00 pm on a working day. On contributions and redemptions greater than Rs. 5 crore, we reserve the right to spread the allocation or cancellation of units over a maximum= period of 30 days. The request for allocation and redemption should be received only in our prescribed format.
Unique no. – 109L036V01

We will allocate additional units to the policy based on the average fund value on the annual renewal date.

On the policyholder terminating the policy, fund value in each account of the policy will be payable to the policyholder.

The policy will automatically terminate if the balance of the policy fund value falls below Rs. 100,000 or if no premium is paid over a continuous period of 5 years. The fund value net of any charges will be refunded to the policyholder at the end of such period.

An insured member, in writing, can appoint a person/policyholder or group of people as beneficiary with the policyholder. He, in writing, can change the beneficiary at any time while the scheme is in effect. If no beneficiary is alive at the time of the death of the insured person, then his or her estate shall be deemed to be the beneficiary. Nominations are as per section 49 of the Insurance Act 1938.

The NAV per unit of each investment fund will be based on the appropriation price or expropriation price.

The appropriation price shall apply in a situation when the company is required to purchase the assets to allocate the units at the valuation date. The expropriation price shall apply in a situation when the company is required to sell assets to redeem the units at the valuation date.