New Delhi, Aug. 27: Max New York Life plans to increase its paid-up capital base to Rs 300 crore from Rs 250 crore at present.
Anuroop ‘Tony’ Singh, Max New York Life’s managing director, told newspersons here today that the capital infusion would take place by the end of the year. The shareholders of the company have already approved an authorised capital of Rs 300 crore.
New York Life of the US has a 26 per cent stake in the company, the maximum foreign stake permitted in the insurance sector. It will continue to maintain its stake after the issue.
The company, which sold 64,000 policies in the last financial year and recorded a sum assured of Rs 2100 crore, today launched its level term policy.
The level term policy is a pure risk protection policy with no return on maturity. The non-participating policy insures life at a relatively low cost and reduces the burden of the family of the insured in the event of his death.
Under this policy, the policyholder has the flexibility of choosing the time period for which he wishes to get insured. A fixed period cover for a term of 5, 10, 15, 20, or 25 years can be chosen from, provided the term expires before the policyholder attains the age of 60.
For example, a 30-year old male can purchase a policy for a period of 5 years and get insured for Rs 10 lakh by paying an economical premium of Rs 2,170 annually. Even in the case of a policy that is purchased for a period of 25 years for a cover of Rs 10 lakh, the policyholder will have to shell out a meagre Rs 3,220 per annum.
The policyholder has the option of paying the premium either in a yearly, half-yearly, quarterly or in a single premium mode.
The minimum age of issuing a policy is 18 years whereas the maximum age is 55 years. The maximum age limit is restricted to 55 years as the outermost age limit of the policy coverage is fixed at 60 years as mentioned above.
The policy can be purchased and clubbed with any of the three riders — personal accident benefit, dread disease rider and waiver of premium rider. The minimum sum assured under the policy is Rs 2.5 lakh and maximum is Rs 5 crore. Also, the premiums paid under these riders qualify for rebate under section 88 of the IT Act.
The company offers eight base products which can be clubbed with nine riders depending on the needs of the policyholder.