CGTMSE/(44)/1765  

                           February 14, 2008 

 

 

All Member Lending Institutions of CGTMSE

 

 

 

Circular No. 44 / 2007-08

 

 

Dear Sir/Madam,

 

 

 

Life Insurance cover for Chief Promoters of units with

Guarantee cover under Credit Guarantee Scheme(CGS)

 

 

 

 

         Please refer to paragraph 9 of our Circular No. 33/2006-07 dated November 01, 2006 regarding procedure for payment of sum assured to the nominee of the deceased. On a review it has been decided that the life insurance claim received from LIC would be passed on to the MLI concerned without insisting on adjustment of claim amount for passing onward to the nominee of the expired Chief Promoter. The revised provedure would be effective retrospectively from August 16, 2007.

         Please bring the contents of the Circular to the notice of the operating offices (Zonal/Branch Offices) of your Bank/Institution.

         Thanking you,

 

 

 

 

 

Yours faithfully,

 

Sd/- 

 

(P.M.Radhakrishnan)

Deputy General Manager