Operating Procedure for Forced Surrender and Loan Repayment Despatch
1. When Loan O/S amount including Interest is more than Gross Surrender value then Forced Surrender request will be automatically created by system and the requests will directly go to approver 1 stage based on the CPC where the loan was issued or the policy migrated.
2. Notices regarding this process will be generated when the Loan O/S amount including Interest exceeds Gross Surrender value 95%,98%. CPCs must despatch the letter to insurant without fail
3. SMSs will be triggered at the time of 1st and 2nd Intimations when the Loan Capitalization amount => 95 %,98 % of Policy’s Surrender value.
4. Intimation of Forced Surrender will be triggered at the time of 3rd Intimation when the Loan Capitalization amount => 100 % of Policy’s Surrender value.
5. If due amount remains unpaid within 30 days from the date of 3rd notice/reminder, Forced Surrender request will be automatically created by system and the request will be forwarded to CPC approver-1 queue for further Approval or Rejection.
6. If the request is approved by approver than Policy status changed to 'Terminated surrender due to loan’. The amount to be paid for the loan with interest will be adjusted while approving the forced surrender.
7. On rejection of request by approver, Customer is required to pay the due amount (principal+ interest). Policy status will be updated accordingly.
Thanks to
Sri. K.Naveenkumar OA/ RO Central Region. TN Circle
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