Kotak Raksha Group Micro Insurance Plan and Policy

No Maturity Benefit available under this plan.

In the unfortunate event of death of the covered member or first death of the two members covered in case of joint life policy, during the term of the cover the following benefit will get paid out in lump sum provided all due premiums have been paid:
Level Cover: Sum Assured will be paid out and cover will cease.
Reducing Cover: Sum Assured as on the date of death as per the loan Cover Schedule will be paid irrespective of the loan outstanding and cover will cease.
In case of Joint Life, post payout of death benefit(on the first death) the cover will terminate. Joint Life option is available only under non-OYRT policies.
In case of Creditor - Borrower schemes, in the event of the Members / Employees death under Regulated Entities, the outstanding loan amount, shall be payable to the Master Policyholder with prior authorization from the Member at inception, out of the total Death Benefit otherwise payable to the Nominee. Any residual benefit shall be paid to the Nominee or Beneficiary, as applicable.
In case of Creditor - Borrower schemes under Other Entities, the Sum Assured shall be payable to the Nominee, in the event of the Members demise.

Policy will acquire Guaranteed Surrender Value (GSV) for Single Premium option only. Policy will acquire Surrender Value immediately after payment of Single Premium. 
In case the Master Policyholder surrenders the policy, the Members shall have the option to continue their cover till the end of their respective Cover Term. The members who do not want to continue with the cover, the Surrender value shall be payable to them and the cover will terminate.

Flexibility to choose plan options: Level Cover or Reducing Cover
I) Level Cover: Under this option the Sum Assured chosen at the inception will remain same through-out the tenure.
II) Reducing Cover: This cover option will be available for Creditor - Borrower relationship only and with Regular or Single Premium payment option, i.e. can be taken against loans taken by the members. Under this option the Sum Assured will start reducing the beginning of the 2nd policy month onwards. The reduction will be basis the loan interest rates chosen at the inception of the policy under the plan.