TERMS AND CONDITIONS APPLICABLE TO LOAN (OVERDRAFT FACILITY) AGAINST LIFE INSURANCE POLICIES

a) HDFC Life Insurance Policy Company (hereinafter referred to as “HDFC Life” which expression, unless it be repugnant to the context or meaning thereof, shall mean and include its successors and assigns); and

b) HDFC Bank Limited (hereinafter referred to as “Bank” or “Financier” which expression, unless it be repugnant to the context or meaning thereof, shall mean and include its successors and assigns)

I, the holder of the life insurance policies, hereby irrevocably and unconditionally accept the contents below, the terms and conditions as hereafter appearing in relation to the assignment of the life insurance policies as also confirm my instructions for the same as under:

All references herein to ‘I’, ‘me’, ‘my’, etc. shall include my heirs, administrators and executors, and the contents of this document, the instructions and the terms and conditions herein, shall be fully binding on and applicable to and enforceable against, without any further writing, deed or act required in this regard, on each of my heirs, administrators and executors.
I confirm that I have voluntarily accessed the online portal of the Bank for availing of the loan (overdraft facility) against life insurance policies (“OD Facility against Insurance Policies”) from the Bank, by and against security of assignment of the life insurance policies held by me with HDFC Life (“Life Insurance Policies”).
All my online instructions received by HDFC Life (either directly or through Bank’s API) and the Bank during or pursuant to my online session (on the portals of the Bank) which session has been initiated and authenticated through the use of net banking login credentials provided by the Bank for net banking facility. During and pursuant to the said online session, these instructions, terms and conditions and my online actions, have been accepted and confirmed by me vide online clicks and by way of verification of one time password (OTP) received on the mobile number registered with the Bank and/or the mobile number registered with HDFC Life respectively. Such one time password and logs of my online session in the systems of the Bank and HDFC Life (and/or their respective service providers), as may be certified by the Bank, shall be considered as conclusive evidence of such instructions having been issued by me and these terms and conditions and such instructions shall be attributed to me.
The contents of this document, the instructions and the terms and conditions herein, shall be fully binding on and applicable to and enforceable against, without any further writing, deed or act required in this regard, on HDFC Life.
The said security in favour of the Bank/Financier, as mentioned in (2) above, is being hereby created by me by way of assignment of my Life Insurance Policies held with HDFC Life, for securing:

a) The due discharge of my obligations under the OD Facility against Insurance Policies, the terms and conditions, and the agreements of the Bank applicable to the OD Facility against Insurance Policies (“OD Documents”);

b) And for due payment and repayment to the Bank of by me of the OD Facility against Insurance Policies, all the principal, dues, interest, additional interest, all other monies, all the charges, expenses, costs, fees etc., payable in relation thereto from time to time in accordance with the OD Documents (“Secured Amounts”) (collectively, “Secured Obligations”).
The assignment herein on the Life Insurance Policies held by me with HDFC Life (“Assignment”) pursuant to these instructions given hereunder in the manner explained hereinafter shall continue till the Final Settlement Date. The date on which the Bank shall confirm in writing that the entire Secured Amounts pertaining to the OD Facility against Insurance Policies have been cleared in full to the Bank and that the OD Facility against Insurance Policies has been fully closed, shall be referred to as “Final Settlement Date”.
I have selected online on the Bank’s page the Life Insurance Policies held by me with HDFC Life for the purpose of Assignment of the Life Insurance Policies in favour of the Bank, which selection shall be instantaneously systemically communicated to HDFC Life and HDFC Life shall earmark the said selected Life Insurance Policies in favour of the Bank, such that, the same shall subject to applicable law, cease to be free policies and shall not be available for me or for any other person to deal with or invoke or surrender or redeem or withdraw and the said Life Insurance Policies shall be held by HDFC Life for the benefit of the Bank (“Earmarked Policies”).
I understand that for the completion of the Assignment of the Earmarked Policies I shall be required to physically sign, execute and deliver to Bank the deed of assignment and notice of assignment in relation to the Earmarked Policies in presence of witness (“Assignment Documents”), and that HDFC Life shall upon receiving the Assignment Documents shall issue, for each case, a confirmation of the irrevocable and unconditional assignment of the Earmarked Policies (“Assigned Life Insurance Policies”) in favour of HDFC Bank (the confirmation from HDFC Life to the Bank confirming successful Assignment shall hereinafter be referred to as the “Acknowledgment Letter”), in relation to the same.
I hereby irrevocably and unconditionally assign in favour of the Bank for securing the Secured Obligations, and authorise HDFC Life to register the Assignment of the Earmarked Policies in favour of the Bank in their systems and registers. My instruction herein including for Assignment of the Earmarked Policies shall be irrevocable and binding on me as regards the Earmarked Policies.
I hereby irrevocably and unconditionally agree that the Acknowledgment Letter and all system confirmations, system reports, emails in relation to Assignment, provided by the Bank to HDFC Life and provided by HDFC Life to the Bank shall be final and binding on me without any further act, deed or writing, and I shall not dispute the same. However, I shall not be entitled to ask for any proof of the HDFC Life Acknowledgment Letter and an email confirmation from the Bank confirming to me the completion of the Assignment shall be conclusive evidence for me of the Assignment and completion thereof and shall be fully and absolutely binding on me including before any court of law or arbitration forum, and I waive any objections I may have in this regard.
I waive any objection I may have in this regard on account of opportunity loss due to not being able to surrender or assign or deal with the Earmarked Policies. I shall not hold HDFC Life or the Bank liable in this regard as I have decided to go ahead out of my own free will despite the risk involved.
Without prejudice to the aforesaid paragraph, the electronic records of the Bank/Financier and HDFC Life shall be conclusive evidence of the Assignment and of me having given irrevocable and unconditional instructions for the same and of the terms conditions hereof and the contents hereof and of my online acceptance and actions therefor. The Bank’s/Financier’s decision on the same shall be final and binding on all parties, including before or in any court of law or arbitration forum under any proceedings including in the event of any dispute. The Bank/Financier and/or HDFC Life may print paper copies of the relevant electronic records or produce in any such form at their discretion, whether from the systems/servers of the Bank/Financier or HDFC Life or any of their service providers (with necessary certificates, from Bank/Financier or HDFC Life or service provider as the case may be) and the same shall be fully binding on me and I have no objection to such print-outs being produced by the Bank/Financier and/or HDFC Life as the case may be, whenever required in evidence in any court, tribunal or otherwise, to prove the acceptance, execution as well as the contents of any of the Assignment and requests/instructions/approvals or any related action or transaction in relation thereto.
The Bank/Financier shall be entitled in its sole and absolute discretion, to surrender, assign, invoke, redeem, withdraw, sell, transfer any of the Assigned Life Insurance Policies without giving any notice to me or without being required to take any consent from me, in any event of default by me in accordance with the OD Documents and to appropriate the proceeds thereof against the Secured Amounts to the extent of such proceeds, and to issue such instructions as may be required in this regard to HDFC Life. HDFC Life shall be bound to act on the instructions of the Bank/Financier without verifying or enquiring whether any event of default has happened or not, and without consulting me and without giving any notice to me and without taking any consent from me. The Bank/ Financier shall specify to HDFC Life the account number of the Bank/ other person (at the Bank’s discretion) to which the sale/ transfer/ redemption proceeds of the Assigned Life Insurance Policies shall be transferred/ paid, and HDFC Life shall be bound by such instruction from the Bank notwithstanding and overriding any instructions from me/ my heirs/ executors/ administrators to the contrary, whether earlier or later. HDFC Life shall not accept any instructions from me/ my heirs/ executors/ administrators for redemption/ sale/ transfer/ removal of assignment/ any action in relation to the Assigned Life Insurance Policies.
Further, in event in which any amounts or proceeds are payable or if any in specie or in kind distribution is to be made or any benefits or rights or entitlements to be given against or on or in relation to the Assigned Life Insurance Policies including in case of any termination, closure, winding up of any of HDFC Life, or any similar or other events, all such amounts, benefits, rights, entitlements, in specie or in kind distributions, as the case may be, shall be made fully and directly to the Bank/Financier in the name of the Bank/Financier and to the account of Bank/Financier without any further act, deed or writing required to be given by me in this regard, and without consulting me and without giving any notice to me and without taking any consent from me.
I further undertake that I shall not, in any manner whatsoever, during the period that the Life Insurance Policies are Assigned in favour of the Bank Financier, surrender/ transfer /assign /redeem /repurchase /switch /nominate /gift /encumber etc. the Assigned Life Insurance Policies.
In this regard, I hereby irrevocably and unconditionally authorise and instruct HDFC Life and the Bank/Financier

a) to accept this online letter as final and irrevocable confirmation of the Assignment by me over the Earmarked Policies in favour of the Bank/Financier for securing the Secured Amounts and the Secured Obligations;

b) to accept this online instruction from me as my irrevocable and unconditional instruction to put a freeze on the Earmarked Policies and to assign the same in favour of the Bank/Financier for securing the Secured Amounts and the Secured Obligations;

c) to irrevocably and unconditionally assign the Assigned Policies in favour the Bank /Financier for securing the Secured Obligations and to update its registers and systems accordingly.

d) to accept any instructions including in relation to surrender, assign, withdrawal, redemption, transfer, etc. for the Earmarked Policies only from the Bank / Financier from this point onwards, and not to rely on any instructions as may be given by me or on my behalf in relation to the Earmarked Policies. Any communication/ demand/instruction given or made by the Bank / Financier in relation to the Assigned Life Insurance Policies to HDFC Life shall be final, and no communication or authentication shall be required from me. Further, no notice, consultation or information shall be required to be given/made to/with me by the Bank /Financier or by HDFC Life. HDFC Life, shall be bound to act on the instructions of the Bank /Financier without verifying or enquiring whether any event of default has happened or not, and without consulting me and without giving any notice to me and without taking any consent from me. Such surrender/ assignment/ invocation/ transfer/redemption of the said Assigned Life Insurance Policies pursuant to the Bank’s / Financier’s instructions shall be valid irrespective of any contrary instructions that may be given by me and may be processed by HDFC Life without any notice or recourse to or from me. Such assignment/ invocation/ transfer /redemption of the said Assigned Life Insurance Policies by HDFC Life shall constitute a valid and effectual discharge;

e) the Bank /Financier to issue the system confirmation or any other mode of communication to HDFC Life, so as to give effect to and complete irrevocably and unconditionally Assignment for and on my behalf;

f) to give full effect to the paragraphs 9 and 10 above and the authorisations above and to take, sign, deliver, execute, all such steps, actions, writings, deeds, as may be required or incidental in this regard.
I hereby represent, warrant, confirm, declare and agree to each of you as under:

a) I am competent to contract within the meaning of the Indian Contract Act, 1872 and that there is no impediment to my capacity to enter into, issue, accept and confirm this online document, contents thereof, and issue instructions thereunder and I have the power to enter into, deliver and perform my obligations herein.

b) The execution, delivery and performance by me of this document and/or Assignment hereunder does not and will not, with or without the giving of notice or lapse of time or both, violate, conflict with, require any consent under or result in a breach of or default under:

i) any law to which I am subject to; or
ii) any order, judgment or decree applicable to me or the Assigned Life Insurance Policies; or
iii) any term, condition, covenant, undertaking, agreement or other instrument to which I am a party or by which any of me or any of my assets are bound.

c) I am the sole and exclusive legal and beneficial owner of, and have good, valid and marketable title to the Earmarked Policies and the Assigned Life Insurance Policies, free and clear of any encumbrance or lock-in, except for the Assignment hereby created.

d) There is nothing in any of the policy documents or agreements with HDFC Life which is contrary to this document or contents hereof or which will restrict in any manner validity or implementation of this document, the instructions hereunder or anything to be done pursuant hereto.

e) HDFC Life shall not issue any duplicate policy certificates in relation to the Assigned Life Insurance Policies or to act upon any request for re-materialization or surrender of the Assigned Life Insurance Policies save and except upon written prior express and specific instructions of the Bank/ Financier
I further confirm that the said Earmarked Policies are presently available as free balance and that no encumbrance of any nature whatsoever has been created or marked on these policies except in favour of the Bank/ Financier I shall, save harmless HDFC Life and the Bank/ Financier against and make good to them, any and all losses, damages, liabilities, suits, claims, counterclaims, actions, penalties, expenses (including any stamp duty, attorney's fees and court costs and any expenses incurred by the any of them for the enforcement of this clause), which any of them shall suffer as a result of any breach of my warranties, representations, covenants, undertakings or agreement contained herein or any claim made by any person in relation to any of the Assigned Life Insurance Policies or anything related to the same.

TERMS & CONDITIONS IN RELATION TO THE ASSIGNMENT OF LIFE INSURANCE POLICIES