Premium Rate

1) The premium rates given in this book are applicable to all new life insurance policies issued by the Corporation henceforth.
2) These rates are the basic annual rates for Rs. 1,000/- sum assured un less mentioned otherw ise.
3) The actual amount of premium payable will be determined by adding to the basic annual premium for the total sum assured a Policy Fee ofRs. 2.50 per Rs. 1,000/-sum assured subject to a maximum of Rs. 100/- per policy except for Table 14 in which Special Policy Fee and rebates are applicable as shown on  page 81.

No Policy Fee will be charged under Tables 18, 71, 73, 77. SPECIAL REBATES

4) For Policies of Rs. 3,00,000 and above Sum Assured: For a
Policy of Rs. 3,00,000/- and above sum assured, the basic annual premium per thousand sum assured will be reduced by 50 Paisa.
5) Staff Rebate: A rebate of 8% of the gross premium will be allowed to the staff members of State Life Insurance Corporation on Tables 01 to 07 (inclusive), This rebate would be available only for direct business on which no Agency or Over-riding commission is payable. Also there will be no monthly extra for employees of the corporation.
6) MODE OF PREMIUM: If the mode of premium payment is other than yearly, the premium installment will be determined by multiplying the annual premium in (3) above by the following factors:

 

Mode	Factor
Half-Yearly	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. Similarly quarterly and monthly premiums will be 8% more.
7) CALCULATION OF PREMIUM: Premium calculation of basic sum assured shall be to the nearest rupee, the method would be to calculate up Co 2 decimals and then take the nearest rupee i.e. if the premium works out to Rs.2 526.49 it should be taken as Rs. 2526/- and if it is Rs. 2526.50 or above it should be taken as Rs. 2527/-.
Extra and Supplementary Contract Premium: Similarly all extra premiums for Supplementary Contracts i.e. AIB, ADB, FIB etc., are also to be calculated to the nearest rupee separately and rounded off separately.
8) The Calculation of Premium Payable is further elaborated by the following example wherein the basic rate per Rs. 1,000/- sum assured for a man, aged nearest birthday 30 years under Table 03 for term 20 years is Rs. 48.42. The premium Instalments for different sums assured will be:
a) For Rs. 50,000/- Sum Assured:
 

Basic Premium	(48.42 x 50) =	= 2421.00
Policy Fee	(2.50 x 50) =
	Maximum	= 100.00
Annual Instalment		= 2521.00	i.e.	2521
Half Yearly Instalment	(2521.00x0.52) =	= 1310.90	i.e.	1311
Quarterly Instalment	(2521.00x0.27) =	= 680.67	i.e.	681
Monthly Instalment	(2521.00x0.09) =	= 226.89	i.e.	227
Monthly Instalment
by banker's Order	(2521.00x0.09) =	= 226.89	i.e.	227

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