ANDHRA PRAGATHI GRAMEENA BANK HEAD OFFICE: KADAPA PLANNING AND DEVELOPMENT DEPARTMENT )$( Circular No.: BC-PDD Date:

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1 ANDHRA PRAGATHI GRAMEENA BANK HEAD OFFICE: KADAPA PLANNING AND DEVELOPMENT DEPARTMENT )$( Circular No.: BC-PDD Date: Renewal of MOU under Group Janatha Personal Accident Insurance Cover to Savings Bank Account Holders of the Bank for 3 years period from to Ref. Cir. Nos. 1) BC-PDD, dated ) BC-ITD, dated ) BC-ITD, dated ) BC-PDD, dated ) BC-PDD, dated Attention of the Branches/ECs/Offices is invited to the captioned subject. Branches are aware that the Bank had entered into MOU with M/s United India Insurance Co. Ltd., Divisional Office, Kadapa on vide Group Master Policy No.50900/42729/05/ and introduced Personal Accident Coverage [PAC] Scheme to Savings Bank a/c holders for three years from to , vide HO circular 1 st cited. Now the above Scheme is going to expire by The above policy received good response from the customers, benefitting over 500 bereaved families by way of settlement of claims, for the past 3 years and another 200 claims are under process with the Company. Further, being micro insurance product, the above policy was extended for a paltry premium of Rs.22/-. Now, with an intention to provide value addition service, to the existing as well as new Savings Bank accounts opened during the policy period and as the settlement of the claims of the deceased SB a/c holders had provided succor and solace to the bereaved families, besides recovery of the existing liabilities of the deceased borrowers from the proceeds of the claims, the Bank has entered into MOU with the Insurance Co., to renew the above Policy for a further period of 3 years i.e. from to Salient features & Operational procedure of the scheme Group Janatha Personal Accidental Insurance Cover are as under: 1. The period of the policy is for 3 years from , but the lives of the SB a/c holders are covered for a period of one year initially i.e. from to It is to be renewed every year thereafter till by collecting premium on annual basis. 2. All individual Savings Bank account holders who attained the age of 10 years and have not completed the age of 70 years are eligible to be covered under the policy, provided a balance of Rs.25/- over and above the requisite minimum balance is available in the account. However, the branches are advised to update the age of the customers to avoid complications in future.

2 Circular No BC-PDD, Date: The premium chargeable is Rs.25/- per account per annum to provide coverage from the date of remittance till 31 st March of the corresponding year for a sum assured of Rs.1 lakh. 4. The risk covered is death due to accident only. 5. Multiple accounts of an account holder will be covered up to a maximum sum of Rs.2.50 lakh under the proposed policy. 6. As per the Master Policy the premium is payable in advance for all the existing eligible account holders. 7. Addition of new account holders during the currency of the policy is subject to payment of the premium only. 8. In respect of joint accounts, insurance cover of Rs lakh would be available to joint account holders in proportion to the sum assured depending upon the number of account holders. Purpose of the Scheme: To provide accidental death cover of Rs.1 lakh to all individual/joint Savings Bank account holders under the age group of 10 to 70 years, under the Master Policy of UII Co. Extent of Cover: The Policy covers only accidental death for a sum assured of Rs. 1 lakh with a maximum sum assured of Rs lakh for multiple accounts. The cover would be extended from the date of issue of Master Policy by UII Co., or debit of premium to the account, whichever is later. The cover would be renewed every year from a common date i.e., expiry date of Master Policy i.e., 31 st of March. Eligibility: All Individual/Joint Savings Bank account holders, who have attained the age of 10 years, but not completed the age of 70 years, excluding NRE & NRO account holders, are eligible to be covered under the scheme, provided a balance of Rs.25/- over and above the requisite minimum balance is available in the account. All Staff members, Ex-staff members are also covered. The Savings bank accounts opened by other than Individuals i.e., Trusts/Charitable Institutions, Government Departments in the name of Heads, Self Help Groups, Partnership firms, Companies, NGOs etc., are not eligible for Insurance cover under this scheme. The individuals with joint saving bank accounts are eligible for coverage under this scheme.

3 Circular No BC-PDD, Date: DEBITING OF PREMIUM IN CBS & ISSUING CREDIT IBAs BY BRANCHES 1. FOR THE QUARTER JANUARY TO MARCH 2012; The PAC Premium in respect of new SB a/cs opened from and those became eligible during the quarter will be debited in CBS on and will be credited to BGL Branches shall verify the same and issue Cr. IBA immediately on Head Office, PDD. 2. FOR THE FULL YEAR [ FROM TO ] The PAC premium for all the eligible SB a/c products will be debited on and credited to BGL Branches shall verify the same and issue Cr. IBA on Head Office, PDD, before Thereafter, the premium will be debited to new accounts opened and the accounts became eligible, once in a quarter i.e. June/Sept./December/March. PERSONS PRESUMED TO BE DEAD DUE TO DROWINING Claims of persons presumed to be dead due to drowning and whose body has not been traced, will be settled after 2 years of the submission of the following documents. a. Police Report and Final Investigation Report. b. Report of findings by customs/port Authorities. c. Affidavit duly notarized. After the report of claim requirements, the Insurance Company will issue loss voucher to the Branch, which has to be discharged by the claimant and return the same to United India Insurance Company, through Branch. NOMINATION FACILITY 1. Nomination facility to be provided to the SB a/c holders, under the existing norms. 2. Nomination facility in respect of sum Assured under the Policy will be accepted by the Insurance Company, as per clause 7 [C] of the MOU. 3. If the nomination given by the insured under clause 7 [C] is other than the legal heir, the claim amount shall be payable to the Nominee, subject to production of No Objection Affidavit from the legal heirs of the deceased. On payment of claim amount to the Nominee, the Insurance Company s liability under the claim gets discharged.

4 Circular No BC-PDD, Date: Important: In view of the coverage of Life risk to the Customer, the Manager / Officer shall ensure to remit the premium, as and when debited to the SB a/cs duly verifying the eligibility conditions through Cr.IBA to HO as per the time schedule, so as to avoid the risk of accountability to the Officer concerned, that may arise due to repudiation of claim by the UII Co. for non-remittance of premium. Newly Opened Accounts: Accounts opened after issuance of renewed Master Policy or after first debit of premium at branch shall be subsequently covered at quarterly intervals. The accounts which could not be covered earlier for want of balance would be covered from the date of future debits if balance is available subsequently. The premium would be debited in CBS at regular intervals on quarterly basis, preferably after 25 th of each quarter June/Sept./Dec./March for the SB accounts opened/revived during the quarter. However, the premium of Rs.25/- shall remain unaltered throughout the year and shall not be calculated on prorate basis. The branches shall remit the premium so debited at every quarter end by 3 rd of succeeding month to Head Office, Planning & Development Department, Kadapa immediately along with a list of account holders in soft copy as per the Proforma furnished under operational procedures at branches and Head Office in the Circular. Period of Insurance: The account for which the premium in full is paid shall be eligible for insurance risk from 1 st of April or from the date of debit of premium to the SB account till 31 st of March of the respective Financial Year. Risks covered: The Insurance cover is available only on the death of the depositor due to accident. The risk covers death due to accident in Road, Rail, Air, Fire, Bomb blast, House collapse, Electrocution, Earthquake, Biting of insects etc. In the event of death due to accident, UIICO will pay a sum of Rs.1.00 lakh to the legal heir / nominee of the deceased. In case of injury due to accidental cause, the risk would be covered, if death happens within six months from the date of accident, provided sole and direct cause of death is related to the accident. However, normal death due to sickness or any other normal cause will not be covered. Joint Accounts: Insurance cover would be available to joint account holders in proportion to the Sum Assured depending up on the number of account holders. Multiple Accounts: Claim will be settled up to a maximum amount of Rs.2.50 lakh only on certification by the Branch Manager subject to payment of required premium in all the accounts. Circular No BC-PDD, Date:

5 Minor Accounts: Minors above 10 years of age will be covered as individual account holders. -5- The premium will be debited only to the SB products as shown in the below mentioned table. However, it is observed that some individual SB a/cs are wrongly entered under various other SB products, such as Govt. deposits product [ ], SB Chq. Gen.- pub.-ind product [ ] and SB Non-Chq. Gen.-Pub-Ind [ ], due to which, the PAC premium may not be debited / not become eligible for debiting. Hence, Branches shall verify the above products and shift the individual SB a/cs to the respective product codes on or before , i.e. before debiting of premium in CBS on List of Eligible Individual SB Products for Debiting PAC premium Type Int Cat Description Min Bal SBCHQ-GEN-PUB-IND SBCHQ-GEN-PUB-SEMI-URBAN-IND SBCHQ-GEN-PUB-RURAL-IND SBCHQ-GEN-PUB-URBAN-IND SBCHQ-STF-GEN-PUB-IND SBCHQ-PENSIONER-PUB-IND SBNCHQ-GEN-PUB-IND SBNCHQ-GEN-PUB-SEMI-URBAN-IND SBNCHQ-GEN-PUB-RURAL-IND SBNCHQ-GEN-PUB-URBAN-IND SBNCHQ-PENSIONER-PUB-IND SBNCHQ-STUDENT-PUB-IND SBNCHQ-PRAGATHI-JANATHA-PUB-FI SBNCHQ-PRAGATHI-JANTA-PUB-IND 0 Claim Procedure: As per the Master Policy Agreement, the legal heir/nominee of the account holder has to intimate the death of the a/c holder within 30 days from the date of death to the branch and the branch shall intimate the same HO-PDD. However, claim documents shall be submitted through the respective branch to HO-PDD with details of nomination within a reasonable period but not exceeding 45 days, from the date of death.

6 Circular No BC-PDD, Date: However, in majority of the cases, the death intimation was not informed to HO within 30 days from the date of death and also, the claim form along with all enclosures not submitted within 45 days from the date of death, causing the Head Office to request the Insurance Company repeatedly for consideration of claims. Further, the claim forms are being submitted without the required certificates in some of the cases. It is observed that in many of the cases the delay was due to the late submission of death intimation/required certificates by the legal heirs mainly because of lack of awareness among the SB a/c holders/their legal representatives. Branches are advised to give vide publicity to PAC guidelines and also highlight these guidelines in the customer meetings invariably. The Regional Managers are also advised to ensure required publicity to PAC guidelines and also highlight these aspects in their meetings organised by the Branches. Branches are hereby advised to note that, there shall no laxity on the part of the Branch in intimating the death immediately on receipt of death intimation as per Annexure I and also guide the legal representatives of the deceased SB a/c holders covered under the scheme for prompt submission of the required certificates in toto and to forward the same to HO, PDD, for onward transmission to the UII Co. Ltd., to avoid future complications if any. Documents Required for consideration of Claim by UII Co: 1. Claim form (as per Annexure-I) duly filled and signed by the claimant/s. 2. Death Certificate in original 3. Copy of post mortem report attested by Police Authorities concerned. 4. Copy of FIR attested by Police Authorities concerned. 5. Copy of Charge sheet/final Report attested by Police Authorities 6. Legal heir certificate from the Revenue Authorities 7. Certificate of Branch Manager certifying the Name of the account holder covered, Account Number, Type of account, Premium amount, Date of debit of premium and Nominee details, if any along with a copy of the relevant SB account Extract. Further, the claim is not admissible, if death happens after SIX months of accident involving prolonged treatment. In addition, the company has laid down the following exclusions. a) Death claims against intentional self-injury, suicide or attempted suicide, whilst under the influence of intoxicating liquor or drugs, whilst racing on wheels, hunting Big Game shooting, Mountaineering or whilst engaged in winter sports, skiing and Ice Hockey directly or indirectly cause by insanity and committing any breach of the law with criminal intent.

7 Circular No BC-PDD, Date: b) Death claim arising from or traceable to war, invasion, act of foreign enemy, hostilities (whether war is declared or not) civil war, rebellion, insurrection, mutiny, military or usurped powers, seizer, capture, arrests, of all people. c) Death claim originating from or traceable to ionizing radiation or contamination by radioactivity from any source, whatsoever or from nuclear weapons material. d) Death due to Murder is also excluded. Further renewal of Policy on a common expiry date: As explained above, a common renewal date, i.e., expiry date of Master Policy shall be kept for all existing as well as new account holders, who are covered under this group insurance scheme. The Master Policy will be renewed w.e.f for a period of one year. Operational Procedures at Branches and Head Office: All the Branches shall invariably display in the Notice Board of the branch, a notice informing the gist of the scheme, as per the Proforma furnished in the Annexure-III. All Officers and staff members shall understand the scheme in detail in order to enable them to apprise the customers in case of enquiry about the debit of premium. Note: If the SB a/c holders, who do not want to have risk coverage through our PAC and persist for refund even after the Managers have convinced such account holders about the need to continue the insurance coverage, the Managers are advised to obtain a letter from such account holders and raise Dr. IBA on HO, Accounts Department and credit the same to the SB a/c of the respective account holder. The Branches shall submit a statement at monthly intervals to HO, PDD along with Dr. IBA in the Proforma furnished in Annexure IV to this circular. If no statement is received by HO from any Branch by 5 th of succeeding month, it will be deemed that the Branches have not refunded any amount. The Debit IBA should contain the following particulars: a) BIC of the branch b) Date of debit of Premium c) Name and SB Account number of the customer. All the Branches are advised to obtain consent letter from the customer, as per Proforma appended to circular [ Annexure II ], while opening new SB a/cs, for debiting the premium by explaining the benefits of the social security, the scheme has, with a nominal premium. The Branches are also advised to follow the same procedure mentioned above, in case the premium is debited, inadvertently to any customer s account having age group of below 10 years or any in eligible account.

8 Circular No BC-PDD, Date: In a nutshell, the action points to be taken by branches / ECs is furnished below: 1. Ensure to display the copy of Notice on the Branch Notice Board for information of all the Customers & the General Public. 2. Remit the premium debited in CBS system duly verifying the eligibility criteria 3. Thereafter, for the premium debited once in a quarter in CBS during June/Sep./December/March for new & revived accounts, send the Cr.IBA on Head Office along with soft copy etc. to HO PDD in a separate cover, to reach Head Office, PDD, by 3 rd of succeeding month. Taking into account the nominal premium, risk cover for life in the scheme, Social security angle to the Customers and high volume of expected business, the branches are advised to take interest in the scheme and mobilize more Low cost deposits to the Bank. The branches are also advised to ensure to display the Board supplied by the UII Co. which contains the gist of salient features of the Scheme, in a prominent place in the branch premises and also a copy of the Notice (ANNEXURE-III) on the Notice board for the information of the General public and Customers for wide publicity of the scheme and also for the benefit of the customers. Clarifications, if any, in this regard may be had from Planning & Development Department, Head Office, Kadapa through their respective Regional Offices. (S.P.KULKARNI) GENERAL MANAGER

9 Enclosure to Cir. No BC-PDD, Dated ANNEXURE-I FORM OF APPLICATION FOR INTIMATION OF CLAIM (To be sent to Head Office-PDD within 1 month from the date of death of the SB a/c holder) TO BE FILLED IN CASE OF DEATH ONLY: I, We.. Son/ of / Daughter of /Widow of late.. residing at hereby apply as legal representative(s) for the grant of Insurance on account of death of Shri / Smt / Kumari... Son of / Daughter of / Widow of... Shri. who died in an accident on... (Date) at.. SB account No. of the deceased Name of the APGB branch Date of debit of premium from the SB account Particulars of the accident and other information are enclosed. Date: Place: Signature of Claimant(s) Forwarded to P.D.D., Head Office Branch Manager Branch. Date:

10 Enclosure to Cir. No BC-PDD, Dated ANNEXURE-II To PLACE: The Manager, DATE : Andhra Pragathi Grameena Bank, Branch. Dear Sir, Sub: Authorisation to debit Rs.25/- to my SB a/c being the premium for Personal Accident Insurance Cover for the year I came to know that Andhra Pragathi Grameena Bank introduced Personal Accident Insurance Cover [Death] by entering an Agreement with M/S United India Insurance Co., Ltd. and I know the rules and regulations of the Scheme. I hereby authorize you to debit Rs.25/- to my SB a/c No. being the premium for Personal Accident Insurance Policy for the year I also agree to debit the premium, as decided by the Bank, from time to time every year as long as the Group Personal Accident Insurance policy is in force in the Bank. Name & Address of the Depositor Yours faithfully, Name: S/O Signature of the Depositor Age: /Date of Birth: Door No. Street: Village Mandal Dist.

11 Enclosure to Cir. No BC-PDD, Dated ANNEXURE-IV LIST OF SB A/C HOLDERS, WHO REQUESTED FOR REFUND OF PREMIUM OF Rs.25/- DEBITED UNDER PAIS DURING THE MONTH OF Sl. No. Name of the SB a/c holder SB a/c No. Date of debit of premium to SB a/c Cr. IBA No. and date through which the premium sent to HO Date of request of the SB a/c holder Dr. IBA No. & Date Date of Refund. Place : Date : Signature of the Manager Branch :

Additional Policy Provisions

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED This booklet is numbered RD (VI) 1. Benefits Additional Policy Provisions Accidental Death Benefit If the Scheme Member has died as a result of an accident