Reliance Securities - Anil Dhirubhai Ambani Group Reliance Securities
A Reliance Capital Company






 
RSP Insure
Invest smartly and shield your family against unfortunate event



RSP Insure

RSP Insure is a Dual Advantage product for investors.

Investor is able to reap the benefits of equity investments by investing regularly through Regular Stock Purchase (RSP).


Investor gets an add-on benefit of a Life insurance cover to take care of pending RSP-Insure Installments in case of untimely demise of the Investor


Investment through RSP Insure can be done in selected stocks, ETFs & Mutual fund schemes (listed on Exchange platform) specified by Reliance Securities Limited.


The Insurance cover is provided under a Group Term Insurance to individual investors opting for ‘RSP Insure’. In an unfortunate event of demise, the insurance cover will take care of the unpaid RSP Insure installments.

 

Product Features
Minimum Investment Amount Rs. 3000 per month or above in multiples of Rs. 100 only.
SCRIP Basket Specified by RSL. Will constitute of Stocks, ETFs, MF Schemes (Listed on Exchange).
Frequency of RSP Insure investment Monthly
RSP tenure Fixed for 10 Years
Charges
  1. RSP Insure Activation Charges: Rs. 2500 (One time)
  2. RSP Insure Transaction Charge: 1 % of trade value + other statutory levies as applicable.
  3. Depository charges: standard & as mentioned in AOF
Maximum Insurance Cover (Includes all RSP Insure Stocks, MF’s) Rs. 10,00,000/-
Age Limit (As per next B’day) Individual between 18 to 50 Years at the time of setting RSP.
Trading in Cash and FNO Client can trade in Cash, Intraday and also in FNO as per exchange segment enabled, on such non RSP insure trades normal brokerage as per scheme assigned will be charged.

How it functions?

How to Apply for RSP Insure?
  • To apply for RSP Insure, investor needs to specify the monthly amount, Instrument (Stock / MF / ETF) in which he wishes to invest. Investor also needs to give a "Personal Declaration Form" (PD Form) & Nomination form in Physical after dully signing it.
How Insurance Cover is granted?
  • The Insurance cover will be granted / rejected based on the information provided in the PD Form.
  • Once the PD From is Accepted, insurance cover will be granted to the client effective from next month onwards. Once PD form is accepted, “RSP Insure Activation Fee” of Rs. 2500 will be levied
How RSP Insure will function?
  • The RSP Insure order will be placed on the nearest date out of 7th, 15th, 22nd or 28th after RSP Insure request is placed.
  • Monthly RSP Insure amount specified by you is invested in stocks of your choice.
  • Insurance cover is subject to acceptance of PD form. The cover will be effective from next month onwards.
  • Example: If RSP Insure start date is 11/12/2011, assuming PD form is submitted on 12/12/2011 & the same is accepted by RLIC on 18/12/2011. Insurance Cover will be effective from 01/01/2012 onwards
  • Insurance cover amount will be reducing every month. The cover will be calculated as per following formula.

    Insurance Cover Amount = RSP Insure monthly amount X Balance RSP Insure Installments (120 installments (-) less already triggered installments ).
  • In case of claim of Insurance, RSL will issue a cheque for the claim amount in favour of Nominee mentioned in the RSP-Insure Nomination form at the time of availing RSP Insure product.
  • Insurance cover provided will be terminated in case any of the following event happens:
    • Failure to pay 2 consecutive RSP Insure Installments due to non availability of funds
    • failure to pay 4 RSP Insure Installments during the entire tenure due to non availability of funds.
    • Investor cancels all future RSP Installments
    • Selected stock is merged / de-merged / delisted / suspended on exchange & client fails to change the stock.
      On happening of any one or more of the 4 events, insurance cover will not be provided effective from next month onwards

  •   In case PD form is rejected and insurance cover is not granted (i.e. rejected), RSP Insure orders can continue for investment, however insurance cover will not be given. Investor may choose to cancel all future RSP Insure Orders.

     

    Can Investor change RSP Insure Plan Component?
  • RSP Insure Plan tenure cannot be changed.
  • Change in STOCK will be allowed during the tenure.
  • Investor can also increase the RSP Insure Installment amount. However he cannot decrease the RSP Insure Installment amount in future. As investor increases the amount, his Insurance cover will also increase effective from next month onwards.
  • All future RSP Insure order will be placed for the new stock/mutual fund or new amount once the request for change in stock symbol or mutual fund scheme or amount is processed by RSL.
  • If more than one RSP Insure is running (i.e. RSP insure for multiple scrips), his insurance cover will be the sum of insurance cover under RSP insure subject to a maximum of Rs. 10,00,000
  • If the stock price goes above the Monthly RSP Insure Investment amount then:
    1. Investor need to increase the RSP Insure amount. If he fails to do so, order will NOT be placed for that month and same amount will be added in next month and accordingly RSP orders will be placed after summing up two months amount and
    2. If Investor is availing RSP insure through ECS facility, he need to revise his ECS amount. This can be done by giving a fresh ECS instruction & cancelling the existing instruction OR by providing separate ECS instruction for additional amount.
Can investor sell the stocks accumulated through RSP Insure?
  • There is NO restriction on sale of shares accumulated through RSP Insure purchase. Once the order is executed, client will be allowed to sell the shares.