Loan Protection Insurance is designed to protect the post-retirement benefits against loans by providing coverage for loan repayments during crises such as accidental death, permanent total disability resulting from an accident, or termination from service without litigation. However, in the event of termination from service, only 50% of the sum assured or the principal loan balance (whichever is less) is eligible.

Coverage:

• Death of Insured Person on account of Accident or Misfortune
• Permanent Total Disability of Insured Person on account of Accident
• Termination from service.

Exclusion:

• Arising or resulting from the Insured Person committing any breach of the law with criminal intent as proven by competent Court of Law.
• Due to, or arising out of, or directly or indirectly connected with or traceable to, war, invasion,
• Directly or indirectly caused by or contributed to by or arising from ionizing radiation or contamination by radioactivity from any nuclear fuel, nuclear weapon materials.
• Due to suicide or above 60 years of age (for individual) and for institutions (as per MOUs) or loan period exceeding 60 months.
• Due to Permanent Total Disability resulting from any injury, sickness or disease which was present before the commencement of the Period of Insurance.
• The Company shall not be liable for any payment in the event of termination from employment of the Insured Person being attributed to absconding from the Country or on conduct of anti Government criminal acts or criminal acts like attempt to murder, rape, theft and burglary, chorten & Lhakhang vandalism, manslaughter, etc.