The Finance Bill 2013 proposes relaxation in the eligibility conditions of Life Insurance Policies for persons suffering from disability or certain ailment. Presenting the Union Budget in the Lok Sabha today, the Finance Minister Shri P.Chidambaram proposed that the permissible premium rate is being increased from 10 per cent to 15 percent of the sum assured in such cases. This relaxation shall be available in respect of policies issued on or after 01.04.2013.

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DSM/RC/nb/40

(Release ID :92757)

Permissible premium increase for disabled policyholders allows higher premiums relative to sum assured for policies issued after the new effective date. The Finance Bill 2013 proposes relaxation of eligibility conditions for life insurance policies for persons with disabilities or certain ailments by increasing the permissible premium rate as a proportion of the sum assured, with the relaxation applicable only to policies issued on or after the stated effective date.