SPECIAL NEEDS FAMILIES Financial Planning Approach And Investment Areas To Consider

Vatsala Pant

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APPROACH FOR A FINANCIAL PLAN This SECTION provides a quick overview on critical parameters which impact your approach for developing a FINANCIAL PLAN for your child.

1. SET UP AN EMERGENCY FUND The most important step while planning financially for your child’s future is to have an emergency fund enough to sustain you and your child’s need for one to one and a

half year. It’s a safeguard against all unpredicted financial crisis, and your income sources have been stopped. The emergency fund can be in the form of liquid cash, liquid mutual funds or fixed deposits. Having immediate cash at your disposal may also allow you to make slightly risky but promising investments.

2. AWARENESS OF THE LIFESPAN OF THE CHILD AND HIS/HER PROGNOSIS

You need to know whether the child’s condition will improve or deteriorate and his/her level of dependency. It will allow you to evaluate what age related needs and expenses will crop up or be reduced in the future.

3. IDENTIFY THE NEEDS OF THE SPECIAL CHILD List all the needs of your child- right from basic daily needs like food, clothing, etc to therapy, medical equipments used if any, recreation, etc.This will help you figure out what all you need to save for and also allow you to list down the child’s expenses while forming a trust deed.

4. IDENTIFY THE NEEDS OF THE OTHER FAMILY MEMBERS Knowing your expenses is an important part of planning. You need to know the various household needs, needs of your other child (or any other dependent) if any, your own monthly expenses. It is this step which helps you in allocating your savings efficiently to all the relevant needs.

5. EVALUATE FUTURE EXPENDITURE OVER THE LIFESPAN OF THE CHILD Evaluate the expenses which are likely to grow in the future like the cost of therapy, etc and take that into consideration while making a financial plan. You also need to take an average annual inflation rate of atleast 6-7% into consideration while planning. You may make use of the Merrill Lynch online calculator or alternatively, the MetLife online calculator for this purpose.

6. HAVE A FINANCIAL PLANNING APPROACH

• List down all your needs - what all do you need to save for, be it your special child, your other child/dependent or your own post retirement needs.

• Quantify all the needs - evaluate the corpus needed for each in the future and then the total corpus needed to cater to all the needs.

• Identify your future savings- the total income from all your sources and allocate a percentage of your savings to each of these needs.

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• This approach not only lets you know your present standing, but also makes sure you take all the needs into consideration.

7. IDENTIFY WHO IS PRESENTLY TAKING CARE OF THE CHILD AND WHO WOULD IN THE FUTURE You need to identify a guardian for your child-it can be a trusted family member, a friend or anybody who you think capable of taking care of your child. You may even have two guardians- one who looks after the day to day needs of your child and the other who looks after his/her financial and legal affairs. The guardian should be well aware of the child’s needs and should himself be financially sound. Else his financial situation may deteriorate later and the chances of him misappropriating the funds are higher. This is perhaps the most important step that you make while securing your child’s future.

8. FORMING A TRUST You can form a private trust where the guardians can act as trustees. Like I explained earlier, a trust can be used to take care of your child’s expenses when you are no longer around to do so. You can fund the trust with the rental income of an estate, the premiums from your insurance, term insurance, PPFs etc and clearly define the trust deed which the trustees are bound to follow. Also, instead of saving money under your child’s name, you should save it under the trust’s name-it may save you from many legal hassles. A group of parents can also come together to form a trust and set up a residence for their wards where they can use the services of a particular parent ( lets say a single mother is a therapist/care taker) and in turn his/her child can also be looked after by the trust. This looks after the needs of kids whose parents are not able to afford a trust. However, here the needs of the beneficiaries should be clearly defined.

9. BUDGETING Budgetting helps you helps in demarcating your expenses. Identify what expenditures are necessary and what are avoidable. Try to cut back on your splurging and unnecessary expenses. It is important to save as much as you can-the more, the better.

10. EVALUATE THE GOVERNMENT BENEFITS AVAILABLE

Be it tax benefits, pensions (which differ from state to state) or travel concessions, it is important that you are aware of these concessions and make use of them; it may seem trivial now but it makes a major difference in the long run.

11. PLAN FOR YOUR RETIREMENT

Most parents seem to ignore this but • Consider your retirement age and calculate the expenses for your post

retirement years (on the basis on today’s expenses and taking 6-7% inflation into effect)

• Accommodate the special child’s expenses in the post retirement years. • Evaluate upto for how long you would be incurring each of the expenses (some

age-related expenses may grow; other may subside). • Calculate the total corpus needed. • Now this corpus should sustain you for your post retirement years.

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WHERE CAN PARENTS INVEST?

Residence Housing loan EMI/rent is the biggest expenditure in an individual’s life-time. Its important to invest in a residence

Debt PPF, EPF and LIC’s Jeevan Aadhar (for special children or dependents) which guarantees additions at the rate of Rs 100 per Rs 1,000 sum assured for each completed policy year

Equities Invest in equities for long term investments (more than 10 years); Any cash gifts received in the child’s name should be invested in such long-term options.

Term-plan Take the largest term cover that you can get. Parents can take whole-life plans with limited payment period, where the policy will never lapse and the proceeds will help fund the trust.

Health Insurance

Invest in a life insurance and health insurance for your child (like Nirmaya) as special children are not covered under the general health insurances.

Monthly Systematic Investment Plans

Regular investments through SIP / mutual funds can be less burdensome as a regular investment option.

Government schemes/ Schemes by National Trust

The National Trust has specific schemes which are crafted for people with special needs. A summary is provided in the annexure.

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DEVELOPING A FINANCIAL PLAN

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GOVERNMENT SUPPORT

INCOME TAX ACT

The most significant development is amendment to section 80 DD of the Income Tax Act as presented in the Union Budget 99-2000 finance bill. Section 80 DD has substituted the earlier section 80 DD, the assesse of the Hindu Undivided Family (HUF) would be entitled to a deduction of Rs. 40,000 in respect of any expenditure for medical treatment (including nursing), training and rehabilitation of handicapped dependent. If this amount is not spend on the treatment but deposited under any scheme by LIC or UTI for the maintenance of the handicapped children, then also this deduction would be permissible, during the accounting year 2000-2001. The Central Board of Direct Taxes vide its letter dated March 26, 1999 issued a clarification that it would be sufficient to furnish a medical certificate from a Government doctor and a declaration in writing duly signed by the assessee certifying the actual amount of expenditure on account of medical treatment including nursing, training and rehabilitation of the disabled dependent, and receipt / acknowledgement of the amount paid or deposited in the specific schemes of LIC or UTI will be sufficient. The circular to the Drawing and Disbursing officers clearly indicated that they need not insist on production of vouchers or medical bills by the employees for having incurred expenditure on medical treatment of their disabled dependent for allowing the deduction under Section 80 DD for the Purpose of computing tax deductable at source. Income Tax Concessions

The Government of India has recently announced the following additional concessions for individuals or Hindu Undivided families who have a relative who is physically disabled. If an assessor who is resident in India, being an individual or Hindu Undivided Family has a relative who has permanent physical disability and the assessor has, during the previous year, incurred any expenditure for medical treatment (including nursing), training and rehabilitation of the disabled person, he/she shall be allowed a deduction of Rs.6,000/-. This deduction will not be allowed where the income exceeds Rs. 1,00,000/-Deduction from the total income of disabled persons under section 80-U of the Income Tax Act has been raised from Rs. 20,000/- to Rs. 40,000/-A deduction of Rs. 20,000/- from the taxable income of the parents or guardians of disabled children has been allowed, provided this amount is deposited in any approved scheme of LIC, UTI etc.

HOTEL DISCOUNTS India Tourism Development Corporation (ITDC) has decided that in all its hotels across the country, it will offer the following two discounts to people with disabilities:

o 50% on room rent, accompanying person / attendant shall not be charged extra i.e. ITDC shall charge 50% on single room tariff for double room.

o 30% discount on food on the a-la-carte menu. They are also taking steps to ensure that all the existing hotels are made accessible and disabled friendly. Infact, many have already made ramps, like Hotel Kanishka and Ashok Yatri Niwas in Delhi and the Ashoka Hotel in Bhopal. To be sure, many more hotels may have already got the ramps made and others too will soon follow. A decision has also been taken that at least one room in every fifty rooms should be made accessible and disabled – friendly.

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CONCESSION ON RAILWAYS Railways allow disabled persons to travel at concession fares up to 75% in the first and second classes. Escorts accompanying blind, orthopedic ally and mentally handicapped persons are also eligible to 75% concession in the basic fare.

EDUCATION As per office Memorandum No. 21011/21/88 Est. (Allowances) dated. 17.10.1988, issued by the Ministry of Personnel, Public Grievances and Pensions (Department of Personnel and Training), grant of children educational allowance, reimbursement of tuition fee etc. to Central Government employees will be covered by the Central Civil Services (Educational Assistance) orders, 1988. Under this order, the reimbursement of tuition fee in respect of physically handicapped and mentally retarded children of the Central Government employees has been enhanced to Rs. 50 p.m. (from class I to XII) in comparison with general category where is restricted to only Rs. 20/ -.The disabled children will however, get other assistance under this scheme as per rates prescribed for the normal children.

EMPLOYEES PROVIDENT FUND The Central Government has made amendments in the Employees Pension Scheme, 1995; called employees pension (Amendment) scheme, 1999. According to this scheme “If a member dies leaving behind a family having son or daughter who is permanently and totally disabled, such son or daughter shall be entitled to Payment of monthly children pension or orphan pension, as the case may be, irrespective of age and number of children in the family in addition to the pension provided under clause (d) of sub para 3, Section 6a.

PARENTS CAN AVAIL SCHEMES OFFERED BY NATIONAL TRUST/ LIC/ ETC..

THE NATIONAL TRUST

Under the provisions of the National Trust Act, 1999 the National Trust has been constituted by the Central Government as a legal entity. The objects of the Trust is to enable and empower persons with disability facilitate support to registered organizations, deal with problems of disabled persons who do not have family support, promote measures for their care and protection in the event of loss of parents and guardians, evolve procedure for appointment of guardians and trustees so that equal opportunities, protection of rights and full participation of such persons is ensured.

Schemes available under the National Trust:

Scheme GHARAUNDA (Group Home And Rehabilitation Activities Under National Trust Act for Disabled Adults)

Scope To provide lifelong care and shelter through an assured minimum quality of care services throughout the life of the persons with Autism, Cerebral Palsy, Mental Retardation & Multiple Disabilities

Objectives To provide an assured minimum quality of care services throughout the life of the persons with Autism, Cerebral Palsy, Mental Retardation & Multiple Disabilities

To encourage assisted living with independence and dignity

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To facilitate establishment of requisite infrastructure for the assured care system throughout the country

To provide the care services at an affordable price on a sustainable basis

Eligibility Any adult person with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities will be eligible to avail the benefits of the Scheme.

The scheme will be available to eligible persons only on payment of requisite amount as determined under the Scheme from time to time.

How to apply

Care seeker needs to provide

Applications, in prescribed format, can be submitted throughout the year, by the Care-seeker.

Care-seeker will have a choice of payment plan & location of care service.

There may be options to choose the desired Care Service and optimum Payment Plan depending on the needs and income level of individual Care-seeker. But as far as practicable, all the Care-seekers at one Group Home will be provided same quality & standard of care services without any discrimination irrespective of their income levels.

Care-seeker will however have the option to book seat in advance by deferring the actual availing of the care service.

Scheme NIRMAYA HEALTH CARD

Objectives To provide affordable Health Insurance to persons with Autism, Cerebral Palsy, Mental Retardation & Multiple Disabilities

To encourage health services seeking behaviour among persons with disability

To improve the general health condition & quality of life of persons with disability

Scope Comprehensive cover

a single premium across age band same coverage irrespective of the type of disability covered under the

National Trust Act insurance cover up to Rs. 1.0 lakh and all persons with disabilities

(NT Act) will be eligible and included and there will be no ‘selection’

The scheme further envisages that there shall be

No exclusion of Pre-existing condition Same cover as that for other persons Services ranging from regular Medical Check-up to Hospitalization,

Therapy to Corrective Surgery, Transportation Conditions requiring repetitive medical intervention as an in-patient

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Pre & Post hospitalization expenses, subject to limits No pre-insurance medical tests Cashless hospitalization in empanelled hospitals, reimbursement of

claims in case of OPD services and treatment through non-empanelled hospitals.

Premium for Enrolment

Rs. NIL for Below Poverty Level (BPL) Rs. 250/- whose monthly income is up to Rs.15, 000/- Rs. 500/- whose monthly income is above Rs. 15,000/- Payment should be made in the National Trust Account No:

………….at any Branch of State Bank of India or Account No: …….. at any Branch of Corporation Bank.

How to Apply Nirmaya Application Form is available on the National Trust website (www.

Submit the following documents along with the application:

Disability Certificate (Xerox copy) Photo (passport size) Residence Proof (Xerox copy) Income Certificate (Xerox copy) & Proof of payment of applicable fee (bank receipt)

How to Claim Claim Process under Niramaya

All Claims for settlement under Niramaya has to be submitted to ICICI Lombard in the prescribed Claim Form alongwith relevant vouchers / bills, etc. within 30 days of treatment or discharge from hospital. The claim form can be downloaded online

For any query regarding reimbursement of claim, kindly contact :

Toll Free Nos: 1800-209-8888, 1800-233-4505, 1800-233-1166,

email id: ihealthcare@icicilombard.com;

ICICI Lombord G.I.C., ICICI Bank Tower, Plot no. 12, Financial District,

Nankrani Guda, Gachibowli, Hydrabad 5000032 (AP)

OR

ICICI Lombard General Insurance Co., Narain Manzil, 3rd Floor, 23, Barakhamba Road,

New Delhi – 110 001, Tel: 011-66310698/66310690/66310600

Guideline to settle your claim fast:

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1. Fill the claim form properly. All the fields must be filled.

1. Enclose the following documents:

A) Copy of Niramaya card or mentioned Health ID No.

B) Attested copy of disability certificate

C) All original prescription papers given by the doctor

D) All original bills of Hospital/ Medicine/Doctor fee/ Therapy fee/ conveyance etc

E) All reports in Original

1. Put your mobile number properly as you will be updated about the claim status.

Most Important Tip : Please update your mobile number on the website of the National Trust by clicking on link below to get updated information about NIRAMAYA on regular basis.

Renewal Process

Every year before expiry of the policy, all policy holders are required to renew the policy by sending all the documents and renewal fee as mentioned above along with the enrolment form to the National Trust through the NGO registered with the National Trust.

Scheme UDDYAM PRABHA

Objectives Promoting income generating economic activities for self-employment of persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities through incentives. Justification – Persons with aforesaid disabilities, due to the uniqueness and severity of their disabilities are further marginalized in earning their livelihood even compared to persons with other disabilities. In fact persons with such disabilities, when given an opportunity, have surprisingly excelled in many fields and have even competed with the best in the world. It is in this context, the Scheme envisages providing some financial incentives to persons with such disabilities for undertaking economic activities for their self-employment by availing loans from financial institutions, banks etc.

Activities Incentive will be provided for availing loan for any income generating economic activity.

Eligibility

Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities

Age 18 years or above Loan for income generating activities from recognized financial

institutions, banks etc.

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No default in repaying the loan.

List of Enclosures

o Attested copy of disability certificate. o Attested copy of proof of loan received, loan account no.,

Interest rate, repayment mode, period and EMI. o Details of the project for which loan is taken. o Any other relevant documents.

Incentive

Incentive upto 5% for BPL and 3% for other categories will be given per annum upto 5 year on a loan amount upto Rs.1 lakh. For example, an eligible person below poverty line will get upto 5% of 1 lakh loan amount i.e. Rs. 5000/- pa for 5 years

Scheme ASMITA - GROUP LIFE INSURANCE SCHEME

Objectives The National Trust was setup in the context of parents’ worries that what will happen to their children with special needs when they are no more. In order to provide a sustainable solution to this rather difficult problem, Asmita -a scheme of Group Life Insurance is conceived with the following objectives 1. To ensure financial security and provide an assured minimum fund for the welfare of persons with Autism, Cerebral Palsy, Mental Retardation andamp; Multiple Disabilities in the event of death or permanent disability of their parent or guardian or any other person (supporter) on whom the person with such disability is physically / financially dependent. 2. To encourage and facilitate parents and guardians and such persons (supporters) to plan and ensure adequate financial security for their wards with such disabilities at affordable cost. 3. To facilitate assisted living with independence and dignity

Justification It is a common knowledge that persons with disabilities in general face several barriers-physical, financial, psychological in leading a life with dignity and independence. Though financial resources are very important for achieving this, parents/ guardians/ supporters are usually unable to raise adequate fund. The situation gets aggravated in any eventuality of their death. The situation is worse with the aforesaid four developmental disabilities as financial requirement for such persons will be much more. So far several life insurance products are available but by and large they are quite expensive and really unaffordable to such parents/ guardians/ supporters. Besides, there is really no incentive for them to go for such insurance in favour of their special children. In order to overcome this problem and also to encourage parents/ guardians/ supporters to take life insurance cover in favour of their special children, an affordable group life Insurance scheme is conceived.

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The Scheme

Under the Scheme either one of the parents or the guardian or the supporter of a disabled person (Beneficiary) shall be insured for a sum of amount as determined by the National Trust in consultation with different stakeholders.

The insurance shall cover death - accidental or otherwise -of the person insured.

There will be no survival benefit but in an unfortunate event of the death of the insured person, the insurance proceeds shall be received by the National Trust which will either retain andamp; utilize it in providing lifelong shelter and care of assured minimum standards as envisaged in its GHARAUNDA scheme to the Beneficiary (ward of the person insured) or if unable to do so, then disburse the proceeds to the Beneficiary in a manner which ensures his/ her best care.

The Scheme shall be implemented by the National Trust either directly or through a Nodal Agency duly appointed by the National Trust for this purpose.

The Scheme shall be underwritten by an Indian Life Insurance company, duly licensed by the Insurance Regulatory andamp; Development Authority (IRDA).

Insurance Benefits under the Scheme

In the event of death of an Insured Person, accidental or otherwise, the sum insured shall be payable by the Insurance Company to the National Trust. However, no benefit shall accrue under the Scheme for death arising out of suicide or intentional self injury by an Insured Person.

The insurance proceeds of the Scheme shall be payable to the National Trust which shall use it to make all possible arrangements for the lifelong shelter andamp; care of the Beneficiary as envisaged in its GHARAUNDA scheme and ensure that the Beneficiary is looked after well. In the event the National Trust is not able to make such arrangement, it shall disburse the proceeds, in its good wisdom, to the Beneficiary, either through the Legal Guardian or in a manner which ensures his/ her best care.

Applicant , Beneficiary andamp; Insured Person

Any person or organization can apply under the Scheme, as Applicant, by paying the applicable fees with an undertaking to pay the applicable fees in future also, as determined by the National Trust from time to time.

Only those persons who have any of the disabilities covered under the National Trust Act shall be eligible to be a Beneficiary under the Scheme.

Only one of the Parents or the Legal Guardian or the Supporter of such a Beneficiary on whom s/he (Beneficiary) is financially dependent shall be eligible to be covered under the scheme, as an Insured Person. An Insured person may or may not be the Applicant. Similarly an Applicant may or may not be the Insured Person.

The maximum entry andamp; exit age of the Insured Person under the Scheme shall be as given under the insurance policy of the

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selected insurance company.

A Guardian or Legal Guardian shall mean any person duly appointed as guardian/ legal guardian by a competent authority under the National Trust Act or any other relevant Act. An alternate guardian shall mean any person who is so declared in the legal guardian certificate issued by the competent authority.

A Supporter shall mean any such person on whom the person with such disability is physically or financially dependent and may include parent, spouse, siblings, any other relative or caregiver etc. Besides a Supporter can also be any person who buys his life insurance policy under the scheme and pledges the proceeds of the insurance claim to the National Trust as donation for any poor Beneficiary under the Scheme.

Accordingly, every Insured Person should be categorised under either of the three categories, namely Parent, Legal Guardian and Supporter. A Beneficiary can be paired with only one Insured Person at a time so that a Beneficiary cannot avail multiple benefits under the Scheme. Obviously, this will not be applicable in case of donor (Supporter).

An Insured Person, on the other hand, can be paired with more than one Beneficiary at a time. So in case of more than one Beneficiary, an Insured Person can have multiple insurance cover but only one per each Beneficiary under the Scheme. Separate applications will however be required for each insurance cover.

The Applicant can change the Beneficiary with the prior consent of the National Trust. But in case no Beneficiary is declared in the application or in case no Beneficiary is substituted by the Applicant within 60 days of the death of the earlier Beneficiary, the National Trust will be at liberty to select a Beneficiary at its sole discretion as and when it deems fit.

Nominee The National Trust shall be the sole nominee in all the cases under the Scheme and shall be the sole recipient of all insurance claim proceeds under the Scheme.

Premium and Other Charges

The insurance company shall be selected and premium shall be decided through a transparent process. The premium amount shall be paid by the National Trust to the selected Insurance Company. However, in order to make the scheme financially self financing and sustainable, there shall be suitable fee, as decided by the National Trust from time to time, which shall be payable to the National Trust in advance by the Applicant to join the Scheme or renew the insurance cover. This fee can be different for different age groups of Insured Persons and will include the premium, tax and other costs of the Scheme.

Renewal of the Insurance Cover

The insurance cover shall be valid for one year or till its renewal.

The insurance cover shall be renewable every year subject to payment of requisite fees and also subject to continuance of the Scheme. However, a Beneficiary can not avail the benefits more than once. So once the insurance benefits have been availed by a

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Beneficiary, there will be no such renewal of the insurance cover to any other Insured Person for that Beneficiary. Since the insurance benefit will flow on the pairing of Insured Person and the Beneficiary, any breaking of this pair shall mean the Beneficiary will not get the benefits of the insurance proceeds. So, if the Beneficiary predeceases the Insured Person or if the Insured Person terminates/changes this pairing in writing with the consent of the National Trust, then the benefit of the insurance proceeds will not flow to the Beneficiary even if the insurance proceeds are received by the National Trust, such as in a situation where the Insured Person dies after breaking this pair. Obviously such a situation will not arise when no beneficiary is declared i.e. pair is not formed/does not exist, such as in case of donor (Supporter).

Scheme Facilitators

All Registered Organizations of the National Trust shall be the facilitators of the Scheme. Facilitation shall include carrying out enrolment activities and assist the Beneficiary in obtaining claims. Their role is further elaborated in the Enrolment and the Claims sections.

There will be a provision of Nodal Agency who will work as third party administrator or TPA and coordinate the implementation of the Scheme. The role of Nodal Agency will include – facilitation of enrolment of Beneficiaries, maintaining of records, facilitation of

disbursement of claims etc.

All Registered Organizations of National Trust will be responsible for Enrolment of Beneficiaries, disbursement of claim, solving any local dispute etc. for the Beneficiaries under their jurisdiction.

Enrolment Process

All applications must be submitted in prescribed enrolment form duly filled up and all documents attached such as proof of disability certificate, income certificate, certificate of Legal Guardianship/ consent letter for supporting the Beneficiary and other requisite documents as per the enrolment form along with the requisite fees preferably by DD/ bank pay order or cheque but not in cash. Applicant can also directly deposit the requisite fees in the National Trust Bank Account and enclose a receipt of the same with enrolment form.

Enrolment forms have to be submitted to any Organisation registered with the National Trust which shall then verify all details given in the form and other documents before accepting the same. Only such forms which are submitted with full details and requisite fees shall be accepted. Form with incomplete information or non-payment of fees shall not be accepted at all.

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Once accepted, Registered Organisations shall enter all details on-line in the website of the National Trust.

On receiving the credit of the remittance towards the requisite fees, the National Trust or its Nodal Agency, if any, shall forward the application to the Insurance Company for insurance coverage Under the scheme.

The Insurance Company may conduct its own scrutiny and/or medical examination of the applicant before approving the application.

In the event of Insurance Company disapproving any application, the amount received from the applicant by the National Trust shall be refunded in full but without any interest.

In the event of Insurance Company approving the application, the insurance cover shall become effective from the date of approval or any other date specifically mentioned in this regard and the same shall be confirmed in writing to the applicant.

This letter shall contain the names andamp; other details of the Insured Person and the Beneficiary, if any, and shall also contain address of the nearest office of the Insurance Company which is to be contacted in the event of a claim and the list of documents usually required for such claims.

Claims Process In the event of death of the Insured Person, immediate intimation, in writing, is to be given to the Insurance Company at the address mentioned in the aforementioned letter.

A copy of such intimation letter is to be endorsed to the concerned Registered Organization and the National Trust.

The documents which are typically required by the insurance Company are as under- *Claim Form * Death Certificate * Post-mortem report (in case of accidental death)

The Insurance Company shall pay the claim amount within 5 weeks from the date of receipt of complete documentation.

In case the insurance company requires some additional documents or information to verify the cause of death, they shall do so not later than 2 weeks from the date of receipt of intimation. Such verification shall be at the expense of the insurance company.

The claim amount shall be payable to the National Trust which, in

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turn, will either utilise it for providing lifelong shelter and care to the Beneficiary or disburse the same in the manner as it deems in the best interest of the Beneficiary.

In the event of repudiation of claim, the insurance company shall communicate the reasons for the same in writing, endorsing a copy of the communication to Registered Organizations and the National Trust.

OTHER SCHEMES AND CONCESSIONS FOR PERSONS WITH DISABILITY

LIC JEEVAN ADHAR INSURANCE POLICY FOR HANDICAPPED AND DISABLE OR PHYSICALLY CHALLENGED PERSON.

o Product Summary This insurance plan may be offered to a person who has a handicapped dependant rewarding conditions as specified in Section 80DDA of Income Tax Act, 1961. The plan provides life insurance cover all over the lifetime of the purchaser. The benefits under the plan are for the handicapped dependants who are partly in lump sum and partly in the form of an annuity.

The premiums paid under this plan are eligible for Income Tax relief under Section 80DDA of Income Tax Act.

o Premiums Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions, as opted by you, within the selected premium paying terms of 10, 15, 20, 25, 30 or 35 years or till the earlier death. Alternatively, the premiums may be paid in one lump sum (Single Premium).

o Guaranteed Additions The policy provides for the Guaranteed Additions at the rate of Rs.100 per thousand Sum Assured for each fulfilled policy year. The Guaranteed Additions will accumulate up to age 65 of the life assured or till his/her death, if earlier.

o Terminal Additions This is a with-profits plan and participates in the profits of the Corporation’s life insurance business. It gets a share of the profits in the form of terminal Additions. The policy will be allowed for Terminal Additions if at least 10 years premiums have been paid. The Terminal additions would depend on the future experience of the Corporation.

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JEEVAN VISHWAS LIC has introduced a new plan “JEEVAN VISHWAS” for the benefit of the physically / mentally handicapped dependants. For the benefit of handicapped dependants “JEEVAN AADHAR” plan was introduced with effect from 17th January 1996. The plan was specially designed so that an individual or member of Hindu Undivided Family can take an assurance on his / her own life to provide for lump sum and an annuity to the handicapped dependant. The provision is in the nature of a limited payment whole life assurance policy. The payment is made to the nominee under the policy, who will be either the handicapped dependant or any other person or a trust, to be utilized for the benefit of the handicapped dependant. The premiums under Jeevan Aadhar are eligible for tax benefit under Sec. 80DD of Income Tax Act, 1961. The definition of disability under rule 11A of Income Tax Rules, 1962, for this purpose is rather stringent in Jeevan Aadhar as such is thus not catering to the needs of those handicapped dependants whose degree of handicap is lower than the specified levels. Keeping in mind the guardians of such lives who may be willing to provide for the dependants even without the benefit under Sec. 80DD of Income Tax Act, it is decided to introduce JEEVAN VISHWAS with effect from 1st December 1999. While developing the plan, feedback received from various sources on the benefit structure of Jeevan Aadhar is taken into account. The plan is Endowment without Profit with guaranteed and loyalty additions.

o Product Summary This is an Endowment Assurance plan designed for the benefit of handicapped dependants.

o Premiums Premiums are payable quarterly, half-yearly or yearly throughout the term of the policy or till the earlier death. Alternatively, the premium may be paid in one lump Sum (single pemium)

o Guaranteed Additions The policy provides for the Guaranteed additions at the rate of Rs.60 per thousand Sum Assured for each completed policy year while the policy is in full force. The Guaranteed Additions are payable at the end of the policy term or on earlier death.

o Loyalty Additions This is a with-profit plan and participates in the profits of the Corporation’s life insurance business. It gets a share of the profits in the form of loyalty additions which are terminal bonuses payable along with death or maturity benefit. Loyalty addition may be payable from fifth year onwards depending on the experience of the Corporation.

For now, both the products have been withdrawn by LIC from 1st January 2014