Face Of Insurance

insurance premium rates

insurance premium rates

insurance premium rates 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

 what is premium rate of life insurance ?

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

insurance premium rates

what is special rebates?

for policies of Rs 300000 and above sum assured;

insurance premium rates
insurance premium rates

for a policy of Rs 300000/-and above sum assured, the basic annual premium per thousand sum assured will be reduced by 50 paise.

 premium rate staff rebate;

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.

Is it cheaper to pay insurance monthly or annually?

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.

mode                         factor

halfyearly                0.52

quarterly                0.27

monthly                0.09

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.

How is insurance premium rate calculated?

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.

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


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