In a pilot basis, Corporation bank has launched group credit life insurance scheme in Mangalore on August 4. This move attributes to increase the insurance cover of the growing population and also strengthen its borrowing community.
About Life Insurance:-
Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money in exchange for a premium, upon the death of an insured person.
- Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. The policy holder typically pays a premium, either regularly or as one lump sum. Other expenses can also be included in the benefits.
- Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot, and civil commotion.
Life-based contracts tend to fall into two major categories:
- Protection policies – designed to provide a benefit, typically a lump sum payment, in the event of specified event. A common form of a protection policy design is term insurance.
- Investment policies – where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the U.S.) are whole life, universal life, and variable life policies.
About Group Life Insurance :
Group life insurance is term insurance covering a group of people, usually employees of a company, members of a union or association, or members of a pension or superannuation fund.
- Individual proof of insurability is not normally a consideration in its underwriting rather, the underwriter considers the size, turnover, and financial strength of the group.
- Contract provisions will attempt to exclude the possibility of adverse selection. Group life insurance often allows members exiting the group to maintain their coverage by buying individual coverage. The underwriting is carried out for the whole group instead of individuals.
Corporation Bank Group Insurance:-
- The scheme is exclusively to cover the customers in the age group of 18-60 years who have taken term loans from the bank.
- It will be payable to the person , in the event of death of the borrower and it is a single premium group term insurance plan offering insurance cover to the loan taken by the customer.
- Depends on the success this insurance coverage will be extended to the various cities of the country and the scheme also covers various term loans, including retail loans and loans to MSME and agriculture.
About Corporation Bank
- HQ – Mangalore
- Establishment – 1906
- CEO – Jai Kumar Garg
- Parental Organization – GOI
