given in rate book are applicable to all new life insurance policies issued by the corporation henceforth
these rates are the basic annual rates for RS1000/ -the sum assured unless mentioned otherwise
this actual amount of premium payable will be determined by adding to the basic annual premium for the total sum assured a policy fee of RS2.50 per 1000 sum assured subject to a maximum of Rs 100/ per policy except for table 14 in which special policy fee and rebates are applicable.
no policy fee will be charged under 18;71;73;77
for policies of Rs 300000 and above sum assured;
for a policy of Rs 300000/-and above sum assured, the basic annual premium per thousand sum assured will be reduced by 50 paise.
a rebate of 8% of the gross premium will be allowed to the staff members of state life insurance corporation on table 01 to 07. this rebate would be available only for direct business on which no agency or overriding commission is payable .Also there will be no monthly extra for employees of the corporation.
mode of premium;
if the mode of premium payment is other than yearly the premium instalment will be determined by multiplying the annual premium in 3 above by the following factors.
monthly by banker s order 0.09
in other words, the half-yearly premium will be 4% more than yearly premium .similary quarterly and monthly premiums will be 8%more.
calculation of premium;
premium calculation of basic sum assured shall be the nearest rupee, the method would be to calculate up to decimals and then take the nearest rupee, i e if the premium works out to Rs 2526.49 it should be taken as 2526/-and if it is Rs 2526.50 or above it should be taken as Rs 2527/-
extra and supplementary contract premium;
similary all extra premium for supplementry contract ieAIB ,ADB, FIB etc .are also to be calculateto the nearest rupee separetely and round off separately.
the calculation of premium payable.
is further elaborated by the following example where in the basic rate per Rs 1000/-sum assured for a man ,aged nearest birthday 30 years under table 03 for 20 years is Rs 48.42. the premium installment for different sum assured will be;
for Rs 50,000/-sum assured;
basic premium 48.42×50=2421.00
policy fee 2.50×50= 100
anual instalment 2521
halfyearly instalment 2521×0.52=1310.90 ie 1311
queraterly instalment 2521×0.27=680.67 ie 681
monthly instalment 2521×0.09=226.89 ie 227