Terms and Conditions

Outlined below are the General Terms and Conditions for the Monthly Reducing Term Insurance. It should be noted that this is a summary and in all cases, the Policy between the Insurer and the Policyholder will prevail for the purposes of determining any aspect of the insurance coverage. 

Definitions
For the purposes of information and relative to the Mortgage Reducing Term Insurance.

"Policy" shall mean the agreement between Tata AIG Life Insurance Company Limited and the Policyholder as defined in the policy numbered DGML000003 and any supplementary contract attached thereto.

"Insurer" shall mean Tata AIG Life Insurance Company Limited.

"Policyholder" shall mean The Hongkong and Shanghai Banking Corporation Limited (HSBC).

"Borrower" shall mean the Principal individual who has taken a mortgage loan from the Policyholder.

"Eligible Members" shall mean borrowers who have attained age 21 but are not over age 58 at last birthday and meet the eligibility requirements set out in the Policy.

"Insured Member" shall mean Eligible Member who according to the provision of the Policy participates in this insurance plan.

"Date of Loss" shall mean the date of death of the Insured Member for a death claim. For a Presumptive Total and Permanent Disability claim, the Date of Loss shall mean the date the Insured Member is certified to have suffered such disability by a Physician and is accepted by the Insurer.

"Sum Insured" in respect of each Insured Member shall be amount equal to his loan outstanding at the Effective Date of his coverage. The Sum Insured is to be reduced each month in accordance with the Reducing Sum Insured Schedule defined in the Policy and the mortgage loan amount, the term of mortgage loan and the interest rate applicable.

"Effective Date of Coverage" will mean the date on which the first premium is received following the approval of the application of insurance by the Insurer under the Policy.

"Presumptive Total and Permanent Disability" shall mean the occurrence of any of the following conditions as a result of accidental bodily injury, sickness or disease:

1. Total and irrecoverable loss of sight of both eyes; or
2. Loss by severance of two or more limbs at or above wrists or ankles; or 
3. The total and irrecoverable loss of sight of one eye and loss by severance of one limb at or above wrist or ankle.
4. The loss of use of two limbs shall also meet the definition of Presumptive Total and Permanent Disability provided such loss of use involves total and permanent loss of function of the limbs affected as determined by the Insurer.

Scope & Extent Of Coverage

• The coverage shall extend to all eligible Mortgage Loan Borrowers who are accepted by the Insurer.
• The risks for the coverage will be insured vide a policy with Tata AIG Life Insurance Company Ltd.
• The insurance will cover payment of loan outstanding (as defined in the Policy) on your Mortgage Loan as at the Date of Loss in the event of your death or Presumptive Total and Permanent Disability but exclude any arrears in loan repayments and charges or fees or interest thereon.

Termination of Coverage
Participation in HLPP will terminate upon the earliest of the following dates:

1. In the event of Policy termination. 
2. The end of 20 years after the Effective Date of Coverage of the Insured Member.
3. The date on which a claim has been accepted by the Insurer.
4. The anniversary of an Insured Member's Effective Date of Coverage at which he attains or has attained age Sixty-Five (65).
5. Full repayment of the Mortgage Loan insured hereunder before expiry of the original duration of the loan shall not terminate the insurance coverage for an Insured Member hereunder, and coverage shall continue based on the original Sum Insured Schedule for the remaining term of the original duration of coverage, unless termination is otherwise requested by the Insured Member by the Insured Member giving thirty-one (31) days' written notice to the Insurer.
6. The expiry of the original loan term insured under the Policy.

Exclusions 

1. No death benefit shall be payable under the Policy if an Insured Member commits suicide, while sane or insane, within one year from his Effective Date of Coverage or date of any reinstatement whichever is later.
2. The Policy shall not cover any disability caused directly or indirectly, wholly or partly, by any of the following occurrences:   
   1. assault and murder;
   2. service in armed forces in the time of war, whether declared or undeclared, or while under orders for warlike operations or restoration of public order;
   3. self-destruction or attempted self-destruction or self-inflicted injuries, while sane or insane;
   4. entering or exiting, operating or servicing, riding in or on, ascending or descending from or with any aerial device or conveyance except while the Insured Member is in an aircraft operated by a commercial passenger airline on a regular scheduled passenger trip over its established passenger route;
   5. any congenital defect which has manifested or was diagnosed before the Insured Member attains 17 years of age;
   6. riot and civil commotion, industrial action, strikes or terrorist activities;
   7. violation or attempted violation of the law or resistance to arrest;
   8. racing on horse or wheels;
   9. alcohol or drug abuse;
   10. pre-existing conditions for which the Insured Member received medical treatment, diagnosis, consultation or prescribed drugs preceding the Effective Date of Coverage of the Insured Member or date of any reinstatement whichever is later.
   11. Disability directly or indirectly, wholly or partly due to an Acquired Immuno Deficiency Syndrome (AIDS) or infection by any Human Immunodeficiency Virus (HIV). For the purpose of this Policy:  
       1. The definition of AIDS shall be that used by the World Health Organisation in 1987, or any subsequent revision by the World Health Organisation of that definition; and
       2. Infection shall be deemed to have occurred where blood tests or other relevant tests indicate, in the opinion of the Insurer either the presence of any Human Immuno-Deficiency Virus or antibodies to such a virus.
3. No benefit is payable under the policy when the date of death or the date of commencement of the disability precedes the Effective Date of Coverage of the Insured Member or date of any reinstatement whichever is later.

Procedures for making a Claim under HLPP - In an unfortunate event when a Death or Disability claim needs to be submitted, it is important that the documents to support and validate the claim are collected and provided to the Insurer without delay. The Insurer will assist and guide as much as is possible.