RIYADH, 14 November 2002— LIC (International) E.C. has launched a major insurance product called the Participating Endowment Plan (PEN) for the benefit of Indian expatriates working in Saudi Arabia.
PEN ensures full insurance coverage for subscribers with the eventual payment of the sum assured with accrued bonuses on the date of maturity.
"In the unfortunate event of death before the date of maturity, sum assured with accrued bonuses are paid to the nominee such as wife or child", said R.S. Jaiswal, director and general manager of LIC (Intl.), while explaining details of the policy plan.
LIC (International), which operates under the sponsorship of Al-Hamidi Contracting Est. also ensures liquidity under this insurance plan by providing loan against the security of the policy.
Spelling out the salient features of the plan, Jaiswal said that a nominal addition to premium entitles the policyholder to special accident coverage benefits. In case of total and permanent disability arising from an accident, all future premiums are waived and an amount equal to the sum assured will be paid in equal monthly installments spread over 10 years, he explained. In case the insured person meets with an accident resulting in death, an additional amount equal to the sum assured is paid to the nominee along with the claim, said Jaiswal. The PEN plan, besides offering limited premium payment facility to policyholders, also offers facility to the clients to pay advance premium for a period of five years in lumpsum at an attractive discounted rate.
Asked about some policyholders being unable to pay premiums because of economic problems, Jaiswal said that "if a premium has been paid for a period of three years and thereafter due to unforeseen circumstances, payments cannot be made; then the PEN policy will automatically be converted into a paid-up policy for a reduced sum assured, payable only on the date of maturity or in the event of unfortunate death, if earlier.