Siranjeevee RD FAQ

frequently asked questions about siranjeevee recurring deposit
Siranjeevee RD FAQ

This is among flagship recurring deposit plans which is linked with an added benefit of life insurance cover. TMB offers this scheme in association with an IRDAI approved insurance company. Get Double Benefit of Insurance Cover and Interest on Deposits. Loans against such deposits are also provided. Insurance Premium is paid by TMB out of future accrued interest. Nomination facility is also available.

Product Details:

Product FAQ:

Whether Minor can open the SRD account ?
No
Whether Joint Account or Either or Survivor (E or S) can be opened SRD account ?
Yes, But only the life of one among them (preferably former) will be covered for insurance duly authorized by others.
Whether SRD account can be opened in the name of Hindu Undivided Family (HUF), Proprietary concern or Partnership firm ?
Yes, But the life of only one among the HUF Members / Partnership Partners can be covered for insurance.
Whether change of life cover to another in a joint/ E or S / Partnership account can be allowed during the period of the SRD account ?
No, It is not allowed.
In case the person who has not been given life cover dies in a Joint / HUF / Partnership account whether the insured amount will be paid?
No, the account will continue as usual with life cover to the optee member (subject to the Original mandate).
What will happen if death occurs to the optee member under the scheme in a Joint / HUF / Partnership account?
As and when a claim is made under the scheme on account of death of the optee member, the deposit account will be closed and the deposit amount will be paid to the account holder’s (Joint account holders / HUF members /Partners of the Partnership firm) as per the mandate given by them at the time of opening the account.
What is the time upto which the life insurance cover is extended under the SRD scheme to the optee member ?
    On occurrence of any one of the below events whichever is earlier, the Life cover comes to an end:
  • The date upto which the insurance premium (Annual / Pro-rata) has been actually paid.
  • The cover is available upto 5.30 P.M on that last day, which is the business hours of the insurance company.
  • When the account is closed by the account holder.
  • When the account is closed by the Bank due to discontinuance of the SRD account for more than 3 months.
  • When the optee member attains the age of 60 years.
In case the Bank closes the account on account of discontinuance of monthly instalments for more than 3 months by the account holder, whether the life insurance premium towards the remaining period will be refunded ?
Yes, the Bank will refund the pro-rata premium towards the future period after the date of closure of SRD account till the actual date upto which premium stands remitted.
Before such closure of account by the Bank if death occurs to the optee member whether insurance claim amount is payable ?
Yes, it will be paid by the Insurance Company through the Bank subject to the terms of the Master Policy.
When the optee member attains the age of 60 years during the chosen term of the SRD will the account will be continued or closed ?
The account will be allowed to continue till its originally committed term without life insurance cover. But, it is advisable to open the account only upto the date on which he / she attains the age of 60.
Suppose the account holder did not receive the maturity amount of the account on or after the maturity date. In the meantime the optee member dies but after maturity date, whether claim is eligible?
No. Since premium is paid upto the date of maturity of SRD account, no claim is payable.
If the optee member met with an accident and he becomes physically incapacitated to continue to be a earning member whether claim is payable in such a situation?
No. The insurance cover will cease on the day the account is closed.
The account holder(s) close(s) the SRD account premature. But, the optee member dies in an accident subsequently whether insurance claim is eligible ?
No.
The optee member met with an accident and injured seriously. He could not remit the subsequent monthly instalments under SRD account but he dies within 6 months whether life insurance claim is eligible ?
Yes, normally the Bank has discretion to close the SRD account if the monthly instalments are not paid continuously for 3 months. However, the scheme provides to the Branch discretion to permit revival of account if the arrears do not exceed 6 months, in such genuine circumstances. Further, the death occurred within 6 months of the accident but caused due to accident is treated as death due to accident and double accident benefit will be paid.
Whether separate policy document will be issued to all the optee members ?
No. The Bank is the Master Policy Holder under the Group Term Life Insurance.Only a certificate of insurance is issued to each optee member by the bank.
Will the life insurance cover start the moment the account is opened ?
Coverage starts from the day on which the account is opened.
Diabetes and Blood Pressure (BP) are nowadays common among many people. How the SRD scheme provides life insurance cover for such members ?
Insurance company arranges for medical examination of members who suffer from such ailments. The cost of such medical check-up is borne by the insurance company.
On the outcome of the examination by the hospitals / Doctors, as prescribed by the insurance company in this behalf, they may accept/ reject the cover or provide the cover on payment of a higher premium.
Incase the insurance cover could not be provided, the account holder may choose to convert the account as ordinary Recurring Deposit (RD) account value dated to the original date of opening of account (or) to close the account.
The insurance company will take a maximum time of 30 days to accept or reject the cover on the basis of records and Declaration of Good Health(DGH) . In case of time delay if any owing to medical examination or such other reasons, can the account holder remit the monthly instalments ?
Yes, it can be remitted.
Is there any Income Tax (I.T.) benefit to account holders for the premium paid to Life Insurance Company ?
Yes. The Bank will issue necessary certificate to the account holders for the premiums paid, subject to the I.T. Act provisions.
In the case of a Joint account of “A & B”, if life of “A” is covered for Insurance who is eligible to claim I.T. benefit ?
Only “A” is eligible.
In the case of rural people, if they do not have an age proof document whether Voter Identity or Ration Card will be accepted?
A valid Ration Card / Voter ID Card will be accepted if age of the account holder is mentioned therein.
If the date of birth is not recorded but age is recorded will the ration card / voter ID be accepted ?
Yes.
How does the exact date on which the optee member attaining the age of 60 will be decided for age admitted on the basis of Ration Card / Voter ID ?
The age given on the date of issue of the Ration Card/Voter ID will be taken to decide the date of attaining the age of 60 in those cases.
Whether Photo is a must ?
Obtaining of photo is not insisted by the insurance company for providing life insurance cover. However, it will be insisted by the Bank subject to the KYC norms.
What are the I.T. benefits under the SRD Scheme ?
  • Sec. 10 D : The claim amount paid to the nominee of the optee member, on his/her demise is exempt for I.T.
  • Premium paid is an Eligible Investment : The life insurance premium paid by the Bank on behalf of the optee member is one of the eligible investments that qualify for tax benefit.
Is there any list of Doctors / Hospitals as approved by the insurance company where medical examination is necessitated ?
The insurance company will inform TMB the name of nearest Hospital / Doctor designated as and when such cases are referred to them for medical underwriting.
Whether DGH (Declaration of Good Health) is to be submitted every year ?
No. It has to be submitted only at the time of entry to the scheme.
Whether NRE account can be opened ?
No.
Whether photo copy or attested copy of the D.O.B Certificate will be accepted by the Bank ?
No. Original along with a photo copy is to be furnished to the Bank. The Bank will verify and return the original.
Will the frequent acidity / gas problems of the Digestive system make the applicant disqualify for life insurance cover or will it attract Medical Examination ?
Such minor ailments do not. However , if such ailments are so critical to necessitate hospitalization then such cases need medical examination.
In case the DGH is found later as false ?
The life insurance cover is subject to accurate and true statements of facts without suppression of material facts to the insurance company as per Sec. 45 of Insurance Act, 1938. Hence, the claim will be rejected if there is false statement.
If the nominee dies whether a fresh nomination can be made ?
Yes, Nomination may be changed any time.
If there is dissolution in partnership what will happen to the account ?
As in the case of any Bank account, the dissolution necessitates closure of the SRD account and hence stoppages of life insurance cover from the date of such closure. The pro-rata premium will be refunded.
If a person had a massive heart attack but survives or undergoes bye pass surgery will be eligible for life cover under the scheme ?
Subject to the medical examination arranged at the cost of insurance company - if he is in good health now. Such fact has to be clearly mentioned in the DGH.
Whether the optee under SRD scheme can get life insurance cover from other insurance companies separately ?
He can have any number of life insurance policies. But, under the group term insurance cover of SRD scheme of our Bank, it is restricted to the maximum amount of Rs. 10 Lakhs.
Whether Pregnant Women will be covered under the SRD scheme with Self Declaration ?
Yes. Life Risk Cover will be available for Pregnant Women on par with normal life and there is no exclusion on this count.

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