This proposal is to cover the borrowers of PUNJAB GRAMIN BANK. (Hereinafter referred to as Group Policyholder/GPH) for Home Loan, Loan against Property and Personal Loan described below. The underlying product being offered by PNB MetLife shall be MetLife Loan and Life Suraksha (MLLS).

Please refer detailed terms, conditions and exclusions stated in the standard terms and conditions for MLLS product which shall form the master policy issued to Group Policy Holder.

Benefit Structure:

Non- medical Limit:-

Terms and conditions

Life insurance coverage

This proposal offers a Level/Reducing Cover with Single and Limited Pay

Extent of Insurance

The scheme covers borrower’s life to the extent of loan liability in level/reducing cover. Maximum amount of life coverage to the extent of loan sanctioned.

Life Insured

The borrower of eligible loans granted by Group Policy Holder, who completes the necessary underwriting requirements and has paid the necessary applicable premium, is defined as the Life Insured.

Insured Event

Death of life insured due to any cause, subject to suicide exclusion in the first year of cover.

Level Cover remains constant and does not reduce with repayment of loan EMIs.

Reducing Cover reduces the amount of insurance every month in line with loan repayment schedule at a specified rate of interest at the beginning of the loan. The amount payable on the death of an insured Member shall be equal to the outstanding loan amount in the repayment schedule prepared by the Company based on the amount of initial loan, applicable rate of interest and the total tenure of the loan as provided by the Group Policyholder. This repayment schedule forms the part of Certificate of Insurance issued to each Insured Member of the group. The outstanding loan schedule is prepared on a monthly reducing basis. The amount payable on death at any time would be as per the loan repayment schedule and equal to loan outstanding at the start of the month as per the above schedule irrespective of actual loan outstanding. The amount as mentioned in this schedule shall not change even if the Insured Member had defaulted in payment of any of the installments due to the Group Policy Holder or makes a part prepayment towards the outstanding loan amount.

Risk Commencement Date (RCD)

RCD shall be determined for each individual life as the later of “Underwriting completion Date” Or “Premium Received Date.”

Suicide Exclusion

If an Insured Member commits suicide, whether sane or not at the time, within one year from the Effective Date of Coverage then the liability of the Company shall be limited to a refund of 80% of the Premium(s) provided the coverage for such Insured Member is in-force.

If an Insured Member commits suicide, whether sane or not at the time, within one year from the date of the last reinstatement of his or her coverage then the liability of the Company shall be limited to refunding the higher of 80% of the unexpired premium (defined as the total premiums paid multiplied by [Balance number of months to the maturity date divided by total number of months in the policy term) or the surrender value at the time of death.

Waiting period

The Company shall not be liable to make any payment under the Group Policy on the occurrence of the Insured Event during the waiting period of 30 days, unless the Insured event occurs due to an accident.

Increase in coverage

If an existing member requests for an increase in coverage on account of enhancing the existing loan amount and/or taking a fresh loan the commencement of any such coverage shall be subject to Fresh Risk Underwriting and as per then prevailing coverage terms, conditions and premium rates. In case of multiple loans, the underwriting requirement for that member will be based on the aggregate loan

Free-Look provision

If the Terms and Conditions of the policy is not satisfied, the Insured Member may cancel its coverage under the Group Policy by giving the Company a written notice within 15 days of receiving the Certificate of Insurance (within 30 days in case of solicitation over distance mode) stating the reasons for objection and the Company shall refund the Premium received in respect of such Insured Member after deducting stamp duty charges and expenses towards medical examination, if any of that Insured Member.

*For more details contact the nearest branch of Punjab Gramin Bank