As the name explains “LIC’s Bima Account – I ” is a simple non-linked plan under which you can be covered without undergoing any medical examination subject to certain conditions.

This plan offers you everything you think of an insurance plan should provide:

  1. Simplicity
  2. Liquidity
  3. Guaranteed minimum return
  4. No medical examination
  5. Transparent charges
  6. Risk cover

Under this plan, the premiums paid by you, after deduction of charges, will be credited to the Policyholder’s Account maintained separately for each policyholder. The risk cover will be provided by deduction of mortality charges from the Policyholder’s Account.

If all due premiums are paid, the amount held in your Policyholder’s Account will earn an annual interest rate of 6% p.a. which will be guaranteed for whole of the policy term. In addition to this guaranteed return, if all due premiums are paid, your account may earn an additional return depending upon the experience under this plan.

You will also have an option to pay additional (Top-up) premiums without any increase in risk cover.
Loan facility will also be available immediately after first policy anniversary.

PAYMENT OF PREMIUMS: You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the term of the policy.
Policyholder’s Account shall consist of 2 parts:

  1. Policyholder’s Regular Premium Account – to which regular premiums, net of charges, shall be credited.
  2. Policyholder’s Top-up Premium Account – to which Top-up premiums, net of charges, shall be credited.


(in years)

1. Minimum Entry Age :     11 (completed)
2. Maximum Entry Age :     50 (nearest birthday)
3. Policy Term :     5 to 7
4. Minimum Maturity Age :     18 (completed)
5. Maximum Maturity Age  :     57 (nearest birthday)
6. Minimum Premium:


Minimum Premium:
Regular premium:
Mode Instalment premium
Yearly  ` 7,000
Half-yearly  ` 4,000
Quarterly  ` 2,000
Monthly (ECS)  ` 600
Top-up premium ` 1000


Maximum Premium:
Regular premium:
Mode Instalment premium
Yearly  ` 14,000
Half-yearly  ` 7,000
Quarterly  ` 3,500
Monthly (ECS)  ` 1100
Top-up premium Sum total of Regular Premiums paid upto the date of payment of top-up


Annualized Premiums shall be payable in multiple of `1000 for all modes other than ECS monthly. For monthly (ECS), the premium shall be in multiples of `100/-.

  1. Minimum Sum Assured: 10 times the annualized premium.
  2. Maximum Sum Assured:

20 times of the annualized premium up to age 35 years
14 times of the annualized premium for age between 36 to 45years
10 times of the annualized premium for age between 46 to 50 years

The maximum Sum Assured shall be subject to maximum non-medical limit applicable for the life to be assured.


A) Expense Charge: This is the percentage of the premium appropriated towards charges from the premium received. The balance part of the premium will be credited to the Policyholder’s Regular Premium Account or Policyholder’s Top-up Premium Account, as the case may be.
The expenses charges are as below:

Regular premium:

Expenses charge (including commission)
First Year 2nd & 3rd Years Thereafter
27.5% 7.5% 5%

Expense charge for top-up Premium:      2.5%
BOther Charges:

  1. Mortality Charge – This is the cost of life insurance cover which is age specific and will be taken every month from the Policyholder’s Regular Premium Account appropriately. This charge shall depend upon the Sum Assured.

The charges per `1000/- life insurance cover for some of the ages in respect of a healthy life are as under:

Age 20 30 40 50
Rs. 1.25 1.46 2.57 6.56


  1. Service Tax Charge – A service tax charge, if any, shall be levied on Mortality charge deducted from the Policyholder’s Regular Premium Account on a monthly basis as and when the corresponding Mortality charges are deducted.

The level of this charge will be as per the rate of service tax as applicable from time to time. Currently, the rate of Service Tax is 10% with an educational cess at the rate of 3% thereon and hence effective rate is 10.30%.

  1. Alteration Charge – This is a charge levied for an alteration within the contract, such as change in mode of payment to higher frequency and decrease in sum assured and shall be a flat amount of `50/- which will be deducted from the Policyholder’s Account and the deduction shall be made on the date of alteration in the policy.
  2. Top-up Premium: You can pay top-up premiums in multiple of `1000/-. The additional premiums paid shall be credited into the Policyholder’s Top-up Premium Account after deducting the expense charge. However, there would not be any increase in the sum assured under the policy. The total of top-up premium at any point of time shall not exceed the sum total of regular premiums paid upto that point of time. Such additional premiums can be paid only if all due premiums have been paid under the policy.


  1. Decrease in benefits: This plan offers you the flexibility of reducing the sum assured during the term of the contract subject to the minimum limit. When the sum assured is reduced, such change will be effective from the policy anniversary coinciding with or next following the date of request.

A grace period of one-month but not less than 30 days will be allowed for payment of premiums under all modes of premium payment.


If due premium is not paid within the days of grace, the policy becomes paid-up. A paid-up policy can be revived within 12 months period from the due date of first unpaid premium or before maturity, whichever is earlier. During this revival period, the life cover will cease and no mortality charge shall be deducted.

The revival shall be made on submission of proof of continued insurability to the satisfaction of the Corporation and the payment of all the arrears of premium without interest.

The Corporation reserves the right to accept the revival at its own terms or decline the revival of a paid-up policy. The revival of a paid-up policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Policyholder.

In case the policy becomes paid-up without payment of at least 2 years’ premium and is not revived during the period of revival, the policy shall compulsorily be terminated on expiry of revival period. No charges shall be deducted and no interest will be credited from the date of compulsory termination. The balance in the Policyholder’s Account shall be refunded on completion third policy anniversary.

In case the policy become paid-up after payment of 2 full years’ premium and is not revived during the period of revival, the policy shall continue.
A policy once surrendered cannot be reinstated.


If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days.