1.1 INTRODUCTION
In order to take care of the employee’s debt arising on account of House Building Advance due to untimely demise of the employee, SJVN has introduced HBA Insurance Policy from LIC with effect from 01.04.2002.

1.2 OBJECTIVE:
To mitigate the hardship faced by family members of a deceased employee on account of payment of outstanding House Building Advance plus interest thereon, to the extent given under the scheme.

1.3 Administration:
The scheme will be administered by corporate P&A DEPT.

2. DEFINITIONS:
In these Rules the following words and expressions shall unless repugnant to the context have the following meanings:

1. “THE CORPORATION” shall mean Satluj Jal Vidyut Nigam Limited.

2. “THE INSURANCE COMPANY” shall mean the Life Insurance Corporation of India established u/s 3 of the Life Insurance Corporation Act, 1956 (hereinafter referred to as the “LIC”).

3. “THE SCHEME” shall mean the SJVN Employees (House Building Advance) Group Insurance Scheme.

4. “THE RULES” shall mean the rules of the Scheme as set out below and as amended from time to time.

5. “THE BORROWER” shall mean an employee of SJVN who has been sanctioned HBA and has drawn the amount in full or part from the Corporation before and/or after the effective date of the scheme & amount is outstanding against him.

6. “THE LOAN” for the purpose of this scheme shall mean the amount of House Building Advance including accrued interest outstanding against an employee not exceeding Rs. 7.5 lakhs on commencement of the scheme or on annual renewal date.

7. “THE MEMBER” shall mean the particular Borrower who has been admitted to the Membership of the Scheme and on whose life an assurance has been or is to be effected in accordance with the scheme/Rules.

8. “EFFECTIVE DATE” shall mean, the date from which the Scheme commences.

9. “ENTRY DATE” shall mean the date of (i) commencement of the scheme in respect of employees who have already drawn HBA & amount is outstanding (Principal and / or interest) (ii) drawl of the HBA in full or in part in respect of employees joining the scheme after its commencement.

10. “ANNUAL RENEWAL DATE” shall mean, the date of completion of 12 months subsequent to the commencement / renewal of Scheme.

11. “TERMINAL DATE” shall mean, the date on which (i) loan repayment including interest is over, (ii) the member ceases to be in the employment of the Corporation on superannuation or otherwise.

12. “THE ASSURANCE” shall mean the particular assurance as defined in Section II of the scheme effected or to be effected on the life of the Member.

13. “OUTSTANDING INDEBTEDNESS” shall mean in relation to the Member, the sum of amount of outstanding principal HBA including accrued interest thereon, subject to a maximum of Rs. 7.50 Lakhs on the Entry Date or the subsequent Annual Renewal Date, notwithstanding the fact that the repayments are made by a member in monthly installments during the relevant year.

3. CORPORATION TO DEAL WITH THE LIC
The Corporation will act for and on behalf of the Members in all the matters relating to the Scheme and every act carried out in accordance with the agreement made with and notice given to the LIC by the Corporation shall be binding on the Members.

4. THE CORPORATION TO FURNISH REQUIREMENTS
The Corporation shall furnish to the LIC the relevant particulars of the Members as are required in connection with the smooth administration of the Scheme, such as notifications regarding admission of New Members, amount of loan disbursed, defaults in repayments, repayment of full loan, death of the Members, etc., if any, so as to enable the LIC to take appropriate action.

The Corporation will also have to furnish the particulars of the outstanding loan including accrued interest for each individual member on the date of commencement of the Scheme and also on every Annual Renewal Date.

5. MEMBERSHIP OF THE SCHEME
All employees who have outstanding amount ( Principal and/or interest) on the sanctioned HBA on the effective date of scheme and those employees who draw the HBA in future will become members of the scheme from the Entry Date subject to fulfillment of insurability condition as per para 7 of Section of scheme.

Employee who is once enrolled as a Member will not have the option to withdraw from the scheme till liquidation of outstanding HBA with interest/cessation of employment in SJVN.

6. EVIDENCE OF AGE
Evidence of age, satisfactory to the LIC shall be furnished by the Corporation in respect of all Members at the time entry into the Scheme.

7. INSURABILITY CONDITION
The insurability condition for providing cover upto Rs. 7.50 Lakhs to an employee is that he would not be covered under the scheme if he is absent from duty on grounds of ill health on the date on which the scheme is introduced or the date on which he is sanctioned loan and also the date on which the loan is disbursed to him. However, he would be covered only if he joins the duty on being fit and the intimation is sent to LIC in this regard.

1. ASSURANCE:
Subject to the provisions of Rule 6 of Section – I, an Assurance shall be effected on the life of each member under One Year Renewal Group Term Assurance Plan for a sum assured equal to the outstanding Indebtedness on account of HBA (Principal and/or interest accrued) subject to maximum of Rs. 7.50 lakhs per member. The total sum assured shall be revised from time to time consequent upon increase in the Outstanding Indebtedness arising from further disbursement of loan by the Corporation, subject to a maximum of Rs. 7.50 Lakh (Principal and/or Interest) per member or consequent upon decrease on the outstanding indebtedness arising from refund of loan in full by the Member.

The sum assured shall be revised on the subsequent Annual Renewal Dates having regard to the aggregate of the sums since deemed to have been repaid towards part of the principal and interest thereon the relevant year.

The Assurance shall be held by the Corporation UPON TRUST for the benefit of the Members to be utilized for the purpose of liquidating their Outstanding Indebtedness. The balance amount if any, remitting out of the claim amount after settling the actual indebtedness of the deceased member, shall remain with the Corporation.

2. PREMIUMS:
The Corporation shall pay to the LIC in respect of each member on the Effective Date and on every Annual Renewal Date such premiums as are required to secure and continue the assurance on the life of the Member for the relevant Sum Assured as specified in Rule 1 of Section II. PROVIDED THAT if the sum Assured in respect of Member is decreased/increased subsequently consequent upon increase in the Outstanding Indebtedness on any date other than the Annual Renewal Date, an appropriate premium shall be adjustable/payable relating to the increase in sum assured. The premium payable to the LIC will be on the outstanding principal amount of house building advance and accrued interest thereon as on 1st April subject to a maximum Rs. 7.50 Lakhs per member. Adjustment of excess premium paid/deposit of additional premium in respect of previous year will, however, be made on the Annual Renewal Date.

3. Benefit :
In the event of any kind of death of the member LIC will remit the outstanding HBA to SJVN limited to 7.5 Lakhs.

1. RESTRAINT ON ASSIGNMENT OR ENCUMBRANCE:
The benefits assured under the Scheme are strictly personal and cannot be assigned, charged or alienated in any way.

2. DISCONTINUANCE OR AMENDMENT OF THE SCHEME:
The Corporation reserves the right to discontinue the Scheme at any time or to amend the Rules thereof on any Annual Renewal Date subject to 1 month notice being given to the LIC.

3. JURISDICTION:
All assurances effected under the Scheme shall be Indian Contracts. They will be subject to Indian Laws including the India Insurance Act, 1938, the Life Insurance Corporation Act, 1956. The Income Tax Act, 1961 and the amendments thereto and to any legislation subsequently introduced. All benefits under the scheme arising out of death of any Member shall be payable in Indian Rupees

4. MASTER POLICY:
The LIC will issue to the Corporation, the Master Policy incorporating all the terms and conditions governing the Assurance effected under the Scheme.

5. RATES OF PREMIUM AND CONDITIONS OF ASSURANCE:
The rate of premium and conditions of Assurance under which the LIC is prepared to arrange the scheme shall be subject to an agreement between the Corporation and the LIC. The conditions and Assurance and the rates of premium may be varied by the LIC from time to time on an Annual Renewal Date subject to 3 months notice being given to the Corporation.

6. INTERPRETATION OF THE RULES & BENEFITS AVAILABLE UNDER THE SCHEME:
For the purpose of interpretation of the rules and/or matter relating to the extent of benefits available under the scheme, the decision of the D(P)/CMD shall be final.

Application to Join SJVN (Self Contributory) Superannuation Scheme
(download in pdf format )

Form of Appointment of Beneficiary under the Rules of SJVN (Self Contributory) Superannuation Scheme
(download in pdf format )