Guarantee Fund (Death Relief)

Overview

Effective January 12,2026, the Society provides vital financial safeguarding to its eligible shareholders through the Guarantee Fund (Death Relief). This initiative is dedicated to supporting their families during difficult times by liquidating the outstanding loan dues of bona fide members who pass away while in active service.

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Eligibility Criteria

A claim under the Guarantee Fund (Death Relief) shall be admissible only if:

  • The deceased was a registered and active member of the Society.
  • The loan was genuine and outstanding as on the date of death.
  • The member had regularly contributed to the Guarantee Fund (Death Relief) as per prescribed rules.
  • The member must have rendered minimum 135 days of duty during the six months preceding the date of the death.
  • The death must be certified by a competent authority as per prescribed Form
  • There must be no fraud, concealment, or misrepresentation in obtaining membership, loan, or claim.
  • In respect of loan accounts, at least three (3) EMIs within last six (6) months immediately preceding the death of the shareholder must have been duly recovered. This provision shall be applicable only where more than nine (9) months have elapsed between the date of loan sanction and the date of death.
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Restrictions / Disqualification Conditions

The Guarantee Fund (Death Relief) claim shall NOT be admissible in the following cases:

  • If the member had knowledge of a serious/life-threatening illness (such as cancer or similar critical diseases) at the time of availing the loan.
  • If the member joined or contributed to the Guarantee Fund (Death Relief) after diagnosis of such serious illness, indicating mala fide intent.
  • If any medical history was suppressed or falsely declared at the time of loan sanction.
  • If the loan is found to be irregular, manipulated, or obtained through misrepresentation.
  • In such cases, the claim shall be rejected as per rules.
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Mandatory Documentation

The following documents must be submitted along with the claim:

  • Application form in the prescribed format, duly filled in and attested by the competent authority.
  • Death Certificate of the deceased issued by competent authority
  • A copy of the Heirship certificate duly attested by a Gazetted Officer.
  • Medical records (if applicable)
  • Any other document as required by the Society
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