Presentation on

Sampoorna Suraksha (SS)

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Presentation Structure

• Sampoorna Suraksha (SS) Business Process

• Sampoorna Suraksha (SS) Claims Process

• Dos & Don’ts

• Points to Remember

Sampoorna Suraksha (SS) –

Business Process

What is Sampoorna Suraksha (SS) ?

• Sampoorna Suraksha (SS) is a Credit Term Group Plan

• In simple words, SS protects the Customer’s family in case of unfortunate death of the customer by covering the Outstanding Finance amount and his House (Property) from Fire and / or

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Finance amount and his House (Property) from Fire and / or any Natural Calamities given in the Policy Terms

Who can take Sampoorna Suraksha?

• Any Individual* who is a loan customer of Mahindra RuralHousing Finance Ltd (MRHFL)

• Any MRHFL customer between the age band of 18 to 55 yearscan be covered under Sampoorna Suraksha (SS)

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can be covered under Sampoorna Suraksha (SS)

• Any other entity other than an individual cannot be coveredunder Sampoorna Suraksha (SS) i.e. any Firm, Trading Co.,School, Institute, Trust, etc. cannot be covered

*Individual – means the Key Person amongst the Borrower & one or manyCo-borrowers

Benefits of Sampoorna Suraksha

Part I – Life Cover Part II – Fire Cover

Protects the Property (or House) from the following:

• Fire, Lightning, Aircraft Damage

• Explosion / Implosion

Only in Case of Death of the Customer Covered

(i.e. Key Person)

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• Explosion / Implosion

• Riot, Strike, Malicious Damage

• Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation

• Impact Damage, Earthquake, Terrorism

• Subsidence & Landslide incl Rock Slide

• Bush Fire, Missile Testing Operations

• Bursting / Overflowing of Water Tanks

(i.e. Key Person)

Cover & Premium Options in Sampoorna Suraksha

Only Single Premium – The customer is covered for the entire loan tenure & there is no need to renew it

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1. For Under Construction Cases 2. For Ready Possession Cases

Part I – Life Cover

Part II – Fire Cover

Part I – Life Cover

Part II – Fire Cover

How Does Sampoorna Suraksha Work?

For Part I – Life Cover:• In case of unfortunate death of the customer covered (i.e. Key

Person), the outstanding loan amount as per the cover scheduleprovided along with the Certificate of Insurance, is paid as theclaim amount by the Insurance Company to Mahindra RuralHousing Finance Ltd, hence not putting the burden of

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Housing Finance Ltd, hence not putting the burden ofrepayment on the customer’s family

Definition of Key Person: Key Person is the earning member of the family and isresponsible for payment of the EMIs

How Does Sampoorna Suraksha Work?

For Part II – Fire Cover • If the property is damaged due to fire and / or any natural

calamities, the claim amount paid will be upto the sum insuredor loss assessed by the surveyor

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How to Calculate Sampoorna Suraksha premium ?

There are three basic parameters for calculation of SampoornaSuraksha (SS) premium:

1. Sum Insured (for Life cover it is Sanction Amount & for Fire cover it is the Cost of the Property)

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2. Age of the Customer (i.e. Key Person, should be between 18to 55 years)

3. Tenure of cover (it should be between 3 years to 15 years)

How to Calculate Sampoorna Suraksha premium? Contd….

• There are two Premium Rate Cards:

1. Rate Card for Under Construction

2. Rate Card for Ready Possession

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• Depending on whether the loan is given for UnderConstruction or for Ready Possession, the next step is to referto the related Rate Card

How to Calculate Sampoorna Suraksha premium ? Contd….

• According to the age of the customer (key person), as per ageproof, identify the age band –

18 - 35 36 - 45 46 - 50 51 - 55

• The Sanction Amount needs to be rounded-off to the next

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• The Sanction Amount needs to be rounded-off to the nextRs.5,000 (e.g. If the sanction amount is Rs. 2,17,000, afterrounding off to the next Rs.5,000 it would becomeRs.2,20,000, so the premium needs to be calculated on Rs.2,20,000)

• Now, calculate the premium according to the SampoornaSuraksha Rate Card

Illustration 1: Amount to be collected towards Sampoorna Suraksha for Under Construction Cases

• Sanction Amount – Rs. 2,24,000 (Rounded off to Rs. 2,25,000)

• Cost of the Property – Rs. 7,42,000 (Rounded off to Rs. 7,45,000)

• Age of the Key Person – 36 years

• Tenure of Contract – 4 years

Amount to be collected towards Sampoorna Suraksha will be:

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Amount to be collected towards Sampoorna Suraksha will be:

Premium Amount – Life Cover Rs. 3337

Broker Retainer Fee (collected by MRHFL on behalf of MIBL)

Rs. 300

Total Amount – Life Cover Rs. 3637

Premium Amount – Fire Cover Rs.1216

Total Amount – Sampoorna Suraksha Rs. 4853

Illustration 2: Amount to be collected towards Sampoorna Suraksha for Ready Possession Cases

• Sanction Amount – Rs. 1,26,000 (Rounded off to Rs. 1,30,000)

• Cost of the Property – Rs. 3,42,000 (Rounded off to Rs. 3,45,000)

• Age of the Key Person – 46 years

• Tenure of Contract – 3 years

Amount to be collected towards Sampoorna Suraksha will be:

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Amount to be collected towards Sampoorna Suraksha will be:

Premium Amount – Life Cover Rs. 2207

Broker Retainer Fee (collected by MRHFL on behalf of MIBL)

Rs. 300

Total Amount – Life Cover Rs. 2507

Premium Amount – Fire Cover Rs. 422

Total Amount – Sampoorna Suraksha Rs. 2929

Mention of Sampoorna Suraksha (SS) details in the Offer Letter to the customer

Currently, the Offer letter given to the customer in each

& every

case mentions the SS premium for Life & Fire Cover as

highlighted:

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highlighted:

Mention of Sampoorna Suraksha (SS) details in the Offer Letter to the customer (contd...)

• As per the revised process, the stamp of Broker Retainer Fee(BRF) collected on behalf of MIBL will be affixed on all theOffer Letter given to the customer in each & every case(Please refer the next slide for reference & understanding)

• The above process will be continued till the time the existing

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• The above process will be continued till the time the existinglot of the Offer letters is exhausted

• Going ahead, the BRF will be preprinted on the Offer letterbooks

Mention of Sampoorna Suraksha (SS) details in the Offer Letter to the customer (contd...)

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Affixing of the BRF stamp on the existing Offer letters as per the Revised Process

Accounting of the Amount Collected for Sampoorna Suraksha:

• Once Sampoorna Suraksha Premium is collected, the sameneeds to be entered in proper Accounting Codes for LifeCover as well as Fire Cover along with Broker Retainer Fee

Sr. No Particulars A/C Code

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1 Sampoorna Suraksha Premium – Fire Cover 11311

2 Sampoorna Suraksha Premium – Life Cover 11310

3 Broker Retainer Fee 11322

Screenshot of the Accounting of the Amount Collected towards Sampoorna Suraksha

Checklist of Documents to be collected with Amount collected towards Sampoorna Suraksha:

• Age Proof – School / College Leaving Certificate, PAN Card,Passport, Driving Licence, Birth Certificate, Election ID Card,Letter from Gram Panchayat / Municipal Authority on theletterhead stating age of the customer

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• Declaration of Good Health Form (DOGH) – Compulsory tobe signed by the customer for every contract covered underSampoorna Suraksha (SS)

Contd…

3. Declaration cum Confirmation under Sampoorna Suraksha (SS)Scheme (attached to the DOGH form):

The same must be compulsory signed by the customer for everycontract covered under SS. Given below is the snapshot of thesame (Part 1 - Front Side) :

Checklist of Documents to be collected with Amount collected towards SS (contd…..):

3. Declaration cum Confirmation under Sampoorna Suraksha (SS)Scheme (attached to the DOGH form): (Part 2-Back Side)

Checklist of Documents to be collected with Amount collected towards MLS (contd…..):

Calculation of Age for Voter id Card & Ration Card

Customer's Age mentioned on Election ID  is 36 YearsYear of issue of Election ID Card 01-01-1995Current Age as on 2011 52 Years

In case, customer has submitted Election Id card or Ration Card as age proof, please refer the date of issue to calculate the current age. (Do not consider age mentioned on the Election Id card or Ration Card as it is)

Given below are the examples which will clarify the above:

Customer's Age mentioned on Ration Card is 46 YearsYear of issue of Ration Card 2005Current Age as on 2011 52 Years

Ration Card

Please note that any age discrepancy found at the time of SS Claim cannotbe rectified and for such cases, the claim amount will be paidproportionately according to correct age of the customer

Process Flow Chart – Sampoorna Suraksha Business

MRHFL employees approach customers for the Sampoorna Suraksha

Mandatory documentsas per the check listand premium amountcollected fromcustomer

Premium receipted

Data of thecustomers who havepaid the premiumextracted from thesystem

Consolidated premium

Cheque and Dataof the customer tobe covered isreceived andacknowledged

Certificates of

CUSTOMER MRHFL BRANCH MIBL HO INSURANCECOMPANY

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Premium receiptedand punched alongwith Home Financecontract in thesystem

Consolidated premiumcheque taken fromMRHFL in the nameof the insurancecompany andforwarded to theInsurance Company

Certificates ofcover are issuedto MIBL

MIBL receives theCertificates of Coverand sends the sameto MRHFL branch

Receives the certificateof cover and Deliversthe same to the customer& retain acknowledgedcopy for record

Customer receivesthe Certificate ofcover

Sampoorna Suraksha (SS) –

Claims Process

Checklist of Claim Intimation – Life Cover

Following details are required when intimating claim to theInsurance Company through Mahindra Insurance Brokers Ltd.(MIBL):

• Name of Key Person (Insured)• Loan Agreement No / Application Id / FinOne ID• Date of Death

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• Date of Death• Place of Death• Cause of Death – Accidental or Natural

Note - All SS Claims must be intimated to MIBL- Head Officewithin 3 months from the date of death of the customer &claim documentation within 15 days from the date of claimintimation

Claim Documentation for Natural / Medical Death cases – Life Cover

• Sampoorna Suraksha Premium Collected receipt• Worksheet copy• Original Agreement Book• Proposal Evaluation Form (PEF)• Age Proof• Declaration of Good Health Form (DOGH)

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• Declaration of Good Health Form (DOGH)• Last Attended doctor’s certificate – Mentioning cause of death• Complete Hospital Papers (Treatment Papers & Case History)• Medical Questionnaire filled by doctor• Original or Attested copy of Death Certificate• Nominee Declaration, Nominee Id & Relationship Proof• Letter from nominee stating series of incident till the time of death

of the customer

Claim Documentation for Accidental Death Cases –Life Cover

• Sampoorna Suraksha Premium Collected receipt• Worksheet copy• Original Agreement Book• Proposal Evaluation Form (PEF)• Age Proof• Declaration of Good Health Form (DOGH)• First Information Report (FIR)

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• First Information Report (FIR)• Post – Mortem Report (PM)• Last Attended doctor’s certificate (In case of hospitalisation)• Hospital Papers (In case of hospitalisation)• Original or Attested Copy of Death Certificate• Nominee Declaration, Nominee Id & Relationship Proof• Letter from nominee stating series of incident till the time of death

of the customer

Lien on Natural Death

• No Claim arising from the death of a member due to any causeother than an accident shall be payable where such deathoccurs within 45 days from the date of his / hercommencement of cover

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• There is no lien on death due to Accident

Suicide Clause

• Any claim arising as a result of a member under this policy,committing suicide within one year of commencement of his /her cover, will be disallowed

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Checklist of Claim Intimation – Fire Cover

• Immediate intimation of loss to appoint suitable Surveyor forverification and assessment of the loss to MIBL or Insurancecompany

• Completed claim form

• Statement about circumstances of loss, action taken thereonand cause of loss

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and cause of loss

• Police Report, Fire Brigade Report

• List of visibly damaged / affected items

• Detailed and item wise estimate of loss supported withquotations, cost analysis etc.

• Original Final bills and payment receipts

• Any other information/document, if required, shall be calledfor on case to case basis

Process Flow Chart - Sampoorna Suraksha Claims

In case of death of member MRHFL Branch is intimated by the family members

Intimationreceived at thebranch isforwarded toMIBL HeadOffice

Information aboutclaim rejection /documents required

Intimation is received &verified whether thecustomer is covered ornot. If covered the same isintimated to Ins. Co.

If the customer is not coveredthe same is intimated to thecustomer’s family throughMRHFL branch. If the

Intimation isreceived & notified

If all the documents arenot available,notification is sent to

Receives intimation /Rejection letter withreasons for rejection

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documents requiredis sent to customer’sfamily

MRHFL branch. If thecustomer is covered, the list ofdocuments / additionaldocuments required forprocessing the claim is sent toMMFSL / MRHFL branch

MIBL for additionaldocuments

Documents received are verified and forwarded to the Ins. Co. along with claim form

Documents as perchecklist is collectedfrom customer’sfamily & sent toMIBL Head Office

reasons for rejection

If rejected

Receives intimation fordocuments required forclaims processing

If the claim is rejected,intimation sent to MIBLHO via e-mail or letterto inform that the claimwill not be cleared. Andif the claim is cleared,intimation is sent toMIBL HO via e-mail &chq is prepared in favorof MRHFL & forwardedto MIBL HO.

Chq is received & forwarded to MRHFL HO. Intimation is also sent to Branch

Chq is received at HO. The receipts are prepared & sent to MIBL HO

How to Sell Sampoorna Suraksha?

First make sure that SS is explained to the customer & while explaining, make useof the following example –

• For example, Loan being Rs.2.5 Lacs for 7 years tenure & age of the customer as32 years. Here, the SS premium will be as under –

Option PremiumPremium Per day

Only Rs.1.40/-

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• Here the customer pays only Rs.1.40 per day for under construction periodcases & Rs.1.24 per day for Ready possession cases to cover the risk & protectthe loan amount with property. This is how we need to convince the customerfor selling Sampoorna Suraksha

Option Premium Per day

Under Construction Cases 3533 1.40

Ready Possession Cases 3127 1.24

Rs.1.40/-Per Day!!

Only Rs.1.24

Per Day!!!

DOs

• Brief each & every Mahindra Home Finance customer aboutSampoorna Suraksha

• During the finalization of the home finance contract with thecustomer, check with the customer whether he / she has paid theSampoorna Suraksha premium

• Collect Premium as per Sampoorna Suraksha Rate Card only• Collect Age proof, Declaration of Good Health & Declaration –

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• Collect Age proof, Declaration of Good Health & Declaration –cum – confirmation letter

• Mention age in the worksheet as per the age proof• Handover Certificate of Insurance to customer by taking

acknowledgement• Please submit complete claim documents within 15 days from the

date of claim intimation for speedy settlement claims

Don’ts

• Do not cover customer with age greater than or equal to 56years

• Do not collect short premium as these cases will not becovered till the total premium is collected & entered in thesystem

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• Do not collect amount for Sampoorna Suraksha if thecustomer is other than Individual, i.e. School, Trust, etc.

• Do not cover customers who are not in good health, as in caseof claim, the case can be rejected due to pre- existing diseases

Points to Remember

• Sampoorna Suraksha can be given only to Individuals in the ageband of 18 – 55 years

• Identify KEY PERSON amongst the Borrower & Co-borrower(s)• Cover only those customers who are in Good Health, this will help

us to keep our Portfolio, healthy• Collect premium only as per the Sampoorna Suraksha Rate Card

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• Collect premium only as per the Sampoorna Suraksha Rate Card• Brief every new MRHFL employee about the features & benefits of

Sampoorna Suraksha & give a copy of this Presentation to him / her• If age details are not entered in the system or premium collected is

not put in proper A/c code, the customer will not be covered underSampoorna Suraksha

Thank You!!

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