PROJECT REPORT

ON

INSURANCE PLANS OF LIFE INSURANCE CORPORATION OF INDIA

AT

Submitted in partial fulfillment of the requirement for the Award of the degree of

TABLE OF CONTENT
TITLE ACKNOWLEDGEMENT DECLARATION EXECTUIVE SUMMARY INTRODUCTION COMPANY PROFILE OBJECTIVE OF THE STUDY POLICIES FINDINGS CONCLUSION ANNEXURE BIBLIOGRAPHY PAGE NO.

ACKNOWLEDGEMENT
We think if any of us honest y !ef e"ts on #ho #e a!e$ ho# #e %ot he!e$ #hat #e think #e &i%ht 'o #e $ an' so fo!th$ #e 'is"o(e! a 'e)t to othe!s that s*ans #!itten histo!y+ The #o!k of so&e unkno#n *e!son &akes ou! i(es easie! e(e!y 'ay+ We )e ie(e it,s a**!o*!iate to a"kno# e'%e a of these unkno#n *e!sons- )ut it is a so ne"essa!y to a"kno# e'%e those *eo* e #e kno# ha(e 'i!e"t y sha*e' ou! i(es an' ou! #o!k+

DECLARATION
I 'o he!e)y 'e" a!e that the !esea!"h !e*o!t tit e' INSURANCE PLANS OF LIFE INSURANCE CORPORATION OF INDIA su)&itte' )y &e in *a!tia fu fi &ent of the !e/ui!e&ent of P.G.D.P.R.A$ e0" usi(e y *!e*a!e' an' "on"e*tua i1e' )y &e an' is not su)&itte' to any othe! Institution o! Uni(e!sity o! *u) ishe' any#he!e )efo!e fo! the !e#a!' of any De%!ee2Di* o&a2Ce!tifi"ate+ It is the O!i%ina #o!k of &ine an' has not )een o)taine' f!o& any othe! *a!t+

CHAPTER-1

INRODUCTION

INSURANCE COMPANIES IN INDIA

In In'ia$ Insu!an"e is a nationa &atte!$ in #hi"h ife an' %ene!a insu!an"e is yet a )oo&in% se"to! #ith hu%e *ossi)i ities fo! 'iffe!ent % o)a "o&*anies$ as ife insu!an"e *!e&iu&s a""ount to 2+45 an' %ene!a insu!an"e *!e&iu&s a""ount to 6+745 of In'ia,s 8DP+ The In'ian Insu!an"e se"to! has %one th!ou%h se(e!a *hases an' "han%es$ es*e"ia y afte! 9:::$ #hen the 8o(t+ of In'ia o*ene' u* the insu!an"e se"to! fo! *!i(ate "o&*anies to so i"it insu!an"e )y *assin% Insu!an"e Re%u ato!y an' De(e o*&ent Autho!ity ;IRDA< =i $ a o#in% FDI u* to 275+ Sin"e then$ the Insu!an"e se"to! in In'ia is "onsi'e!e' as a f ou!ishin% &a!ket a&on%st % o)a insu!an"e "o&*anies+ >o#e(e!$ the a!%est ife insu!an"e "o&*any in In'ia is sti o#ne' )y the %o(e!n&ent+ The histo!y of Insu!an"e in In'ia 'ates )a"k to 9?9?$ #hen O!ienta Life Insu!an"e Co&*any #as esta) ishe' )y Eu!o*eans in @o kata to "ate! to thei! !e/ui!e&ents+ Ne(e!the ess$ the!e #as 'is"!i&ination a&on% the ife of fo!ei%ne!s an' In'ians$ as hi%he! *!e&iu&s #e!e "ha!%e' f!o& the atte!+ In 9?A6$ In'ians took a si%h of !e ief #hen =o&)ay Butua Life Assu!an"e So"iety$ the fi!st In'ian insu!an"e "o&*any "o(e!e' In'ian i(es at no!&a !ates+ Onset of the 26th "entu!y )!ou%ht a '!asti" "han%e in the Insu!an"e se"to!+ In 9:92$ the 8o(t+ of In'ia *asse' t#o a"ts C the Life Insu!an"e Co&*anies A"t$ an' the P!o(i'ent Fun' A"t C to !e%u ate the insu!an"e )usiness+ Nationa Insu!an"e Co&*any Lt'$ foun'e' in 9:67$ is the o 'est e0istin% insu!an"e "o&*any in In'ia+ Ea! ie!$ the Insu!an"e se"to! ha' on y t#o state insu!e!s C Life Insu!e!s i+e+ Life Insu!an"e Co!*o!ation of In'ia ;LIC<$ an' 8ene!a Insu!e!s i+e+ 8ene!a Insu!an"e Co!*o!ation of In'ia ;8IC<+ In De"e&)e! 2666$ these su)si'ia!ies #e!e 'eC inke' f!o& *a!ent "o&*any an' #e!e 'e" a!e' in'e*en'ent insu!an"e "o&*aniesD O!ienta 7

Insu!an"e Co&*any Li&ite'$ Ne# In'ia Assu!an"e Co&*any Li&ite'$ Nationa Insu!an"e Co&*any Li&ite' an' Unite' In'ia Insu!an"e Co&*any Li&ite'+ With an annua %!o#th !ate of 94C265 an' the a!%est nu&)e! of ife insu!an"e *o i"ies in fo!"e$ the *otentia of the In'ian insu!an"e in'ust!y is hu%e+ Tota (a ue of the In'ian insu!an"e &a!ket ;2663C64< is esti&ate' at Rs+ 346 )i ion ;USE96 )i ion<+ The ife insu!an"e in'ust!y in In'ia %!e# )y an i&*!essi(e .75$ #ith *!e&iu& in"o&e f!o& ne# )usiness at Rs+ 24.+3. )i ion 'u!in% the fis"a yea! 2663C2664$ )!a(in% stiff "o&*etition f!o& *!i(ate insu!e!s+ This !e*o!t$ FIn'ian Insu!an"e In'ust!yD Ne# A(enues fo! 8!o#th 2692F$ fin's that the &a!ket sha!e of the state )ehe&oth$ LIC$ has " o"ke' 29+?A5 %!o#th in )usiness at Rs+9:A+?7 )i ion )y se in% 2+3 )i ion ne# *o i"ies in 2663C64+ =ut this #as sti not enou%h to a!!est the fa in its &a!ket sha!e$ as *!i(ate * aye!s %!e# )y 92:5 to &o* u* Rs+ 44+4A )i ion in 2663C64 f!o& Rs+ 23+2: )i ion in 266.C63+ Thou%h the tota (o u&e of LIC,s )usiness in"!ease' in the fis"a yea! ;2663C2664< "o&*a!e' to the *!e(ious one$ its &a!ket sha!e "a&e 'o#n f!o& ?A+63 to A?+6A5+ The 93 *!i(ate insu!e!s in"!ease' thei! &a!ket sha!e f!o& a)out 9.5 to a)out 225 in a yea!,s ti&e+ The fi%u!es fo! the fi!st t#o &onths of the fis"a yea! 2664C67 a so s*eak of the %!o#in% sha!e of the *!i(ate insu!e!s+ The sha!e of LIC fo! this *e!io' has fu!the! "o&e 'o#n to A4 *e!"ent$ #hi e the *!i(ate * aye!s ha(e %!a))e' o(e! 23 *e!"ent+ The!e a!e *!esent y 92 %ene!a insu!an"e "o&*anies #ith fou! *u) i" se"to! "o&*anies an' ei%ht *!i(ate insu!e!s an' *!i(ate insu!an"e "o&*anies "o e"ti(e y ha(e a 965 sha!e of the nonC ife insu!an"e &a!ket+

CHAPTER-2 COMPANY PROFILE

COMPANY PROFILE
The sto!y of insu!an"e is *!o)a) y as o ' as the sto!y of &ankin'+ The sa&e instin"t that *!o&*ts &o'e!n

)usiness&en to'ay to se"u!e the&se (es a%ainst oss an' 'isaste! e0iste' in *!i&iti(e &en a so+ Th ey too sou%ht to a(e!t the e(i "onse/uen"es of fi!e an' f oo' an' oss of ife an' #e!e #i in% to &ake so&e so!t of sa"!ifi"e in o!'e! to a"hie(e se"u!ity+ Thou%h the "on"e*t of insu!an"e is a!%e y a 'e(e o*&ent of the !e"ent *ast$ *a!ti"u a! y afte! the in'ust!ia e!a G *ast fe# "entu!ies G yet its )e%innin%s 'ate )a"k a &ost 7666 yea!s+ Life Insu!an"e in its &o'e!n fo!& "a&e to In'ia f!o& En% an' in the yea! 9?9?+ O!ienta Life Insu!an"e Co&*any sta!te' )y Eu!o*eans in Ca "utta #as the fi!st ife insu!an"e "o&*any on In'ian Soi + A the insu!an"e "o&*anies esta) ishe' 'u!in% that *e!io' #e!e )!ou%ht u* #ith the *u!*ose of ookin% afte! the nee's of Eu!o*ean "o&&unity an' In'ian nati(es #e!e not )ein% insu!e' )y these "o&*anies+ >o#e(e!$ ate! #ith the effo!ts of e&inent *eo* e ike =a)u Butty a Sea $ the fo!ei%n ife insu!an"e "o&*anies sta!te' insu!in% In'ian i(es+ =ut In'ian i(es #e!e )ein% t!eate' as su)Cstan'a!' i(es an' hea(y e0t!a *!e&iu&s #e!e )ein% "ha!%e' on the&+ =o&)ay Butua Life Assu!an"e So"iety he!a 'e' the )i!th of fi!st In'ian ife insu!an"e "o&*any in the yea! 9?A6$ an' "o(e!e' In'ian i(es at no!&a !ates+ Sta!tin% as In'ian ente!*!ise #ith hi%h y *at!ioti" &oti(es$ insu!an"e "o&*anies "a&e into e0isten"e to "a!!y the &essa%e of insu!an"e an' so"ia se"u!ity th!ou%h insu!an"e to (a!ious se"to!s of so"iety+ =ha!at Insu!an"e Co&*any ;9?:7< #as a so one of su"h

"o&*anies ins*i!e' )y nationa is&+ The S#a'eshi &o(e&ent of 9:64C9:6A %a(e !ise to &o!e insu!an"e "o&*anies+ The Unite' In'ia in Ba'!as$ Nationa In'ian an' Nationa Insu!an"e in Ca "utta an' the CoCo*e!ati(e Assu!an"e at Laho!e #e!e esta) ishe' in 9:67+ In 9:6A$ >in'ustan CoCo*e!ati(e Insu!an"e Co&*any took its )i!th in one of the !oo&s of the Ho!asanko$ house of the %!eat *oet Ra)in'!anath Ta%o!e$ in Ca "utta+ The In'ian Be!"anti e$ 8ene!a Assu!an"e an' S#a'eshi Life ; ate! =o&)ay Life< #e!e so&e of the "o&*anies esta) ishe' 'u!in% the sa&e *e!io'+ P!io! to 9:92 In'ia ha' no e%is ation to !e%u ate insu!an"e )usiness+ In the yea! 9:92$ the Life Insu!an"e Co&*anies A"t$ an' the P!o(i'ent Fun' A"t #e!e *asse'+ The Life Insu!an"e Co&*anies A"t$ 9:92 &a'e it ne"essa!y that the *!e&iu& !ate ta) es an' *e!io'i"a (a uations of "o&*anies shou ' )e "e!tifie' )y an a"tua!y+ =ut the A"t 'is"!i&inate' )et#een fo!ei%n an' In'ian "o&*anies on &any a""ounts$ *uttin% the In'ian "o&*anies at a 'isa'(anta%e+

The fi!st t#o 'e"a'es of the t#entieth "entu!y sa# ot of %!o#th in insu!an"e )usiness+ F!o& 33 "o&*anies #ith tota )usinessCinCfo!"e as Rs+22+33 "!o!e$ it !ose to 9A7 "o&*anies #ith tota )usinessCinCfo!"e as Rs+2:? "!o!e in 9:.?+ Du!in% the &ush!oo&in% of insu!an"e "o&*anies &any finan"ia y unsoun' "on"e!ns #e!e a so f oate' #hi"h fai e' &ise!a) y+ The Insu!an"e A"t 9:.? #as the fi!st e%is ation %o(e!nin% not on y ife insu!an"e )ut a so nonC ife insu!an"e to *!o(i'e st!i"t state "ont!o o(e! insu!an"e )usiness+ The 'e&an' fo! nationa i1ation of ife insu!an"e in'ust!y #as &a'e !e*eate' y in the *ast )ut it %athe!e' &o&entu& in 9:33 #hen a )i to a&en' the Life Insu!an"e A"t 9:.? #as int!o'u"e' in the Le%is ati(e

Asse&) y+ >o#e(e!$ it #as &u"h ate! on the 9:th of Hanua!y$ 9:47$ that ife insu!an"e in In'ia #as nationa i1e'+ A)out 943 In'ian insu!an"e "o&*anies$ 97 nonC

96

In'ian "o&*anies an' A4 *!o(i'ent #e!e o*e!atin% in In'ia at the ti&e of nationa i1ation+ Nationa i1ation #as a""o&* ishe' in t#o sta%es- initia y the &ana%e&ent of the "o&*anies #as taken o(e! )y &eans of an O!'inan"e$ an' ate!$ the o#ne!shi* too )y &eans of a "o&*!ehensi(e )i + The Pa! ia&ent of In'ia *asse' the Life Insu!an"e Co!*o!ation A"t on the 9:th of Hune 9:47$ an' the Life Insu!an"e Co!*o!ation of In'ia #as "!eate' on 9st Se*te&)e!$ 9:47$ #ith the o)Ie"ti(e of s*!ea'in% ife insu!an"e &u"h &o!e #i'e y an' in *a!ti"u a! to the !u!a a!eas #ith a (ie# to !ea"h a insu!a) e *e!sons in the "ount!y$ *!o(i'in% the& a'e/uate finan"ia "o(e! at a !easona) e "ost+ LIC ha' 4 1ona offi"es$ .. 'i(isiona offi"es an' 292 )!an"h offi"es$ a*a!t f!o& its "o!*o!ate offi"e in the yea! 9:47+ Sin"e ife insu!an"e "ont!a"ts a!e on% te!& "ont!a"ts an' 'u!in% the "u!!en"y of the *o i"y it !e/ui!es a (a!iety of se!(i"es nee' #as fe t in the ate! yea!s to e0*an' the o*e!ations an' * a"e a )!an"h offi"e at ea"h 'ist!i"t hea'/ua!te!+ ReCo!%ani1ation of LIC took * a"e an' a!%e nu&)e!s of ne# )!an"h offi"es #e!e o*ene'+ As a !esu t of !eCo!%ani1ation se!(i"in% fun"tions #e!e t!ansfe!!e' to the )!an"hes$ an' )!an"hes #e!e &a'e a""ountin% units+ It #o!ke' #on'e!s #ith the *e!fo!&an"e of the "o!*o!ation+ It &ay )e seen that f!o& a)out 266+66 "!o!es of Ne# =usiness in 9:4A the "o!*o!ation "!osse' 9666+66 "!o!es on y in the yea! 9:7:CA6$ an' it took anothe! 96 yea!s fo! LIC to "!oss 2666+66 "!o!e &a!k of ne# )usiness+ =ut #ith !eCo!%ani1ation ha**enin% in the ea! y ei%hties$ )y 9:?4C?7 LIC ha' a !ea'y "!osse' A666+66 "!o!e Su& Assu!e' on ne# *o i"ies+ To'ay LIC fun"tions #ith 263? fu y "o&*ute!i1e' )!an"h offi"es$ 966 'i(isiona offi"es$ A 1ona offi"es an' the "o!*o!ate offi"e+ LICJs Wi'e A!ea Net#o!k "o(e!s 966 'i(isiona offi"es an' "onne"ts a the )!an"hes th!ou%h a Bet!o A!ea Net#o!k+ LIC has tie' u* #ith so&e =anks an' Se!(i"e *!o(i'e!s to offe! onC ine *!e&iu&

99

"o e"tion fa"i ity in se e"te' "ities+ LICJs ECS an' ATB *!e&iu& *ay&ent fa"i ity is an a''ition to "usto&e! "on(enien"e+ A*a!t f!o& onC ine @iosks an' IKRS$ Info Cente!s ha(e )een "o&&issione' at Bu&)ai$ Ah&e'a)a'$ =an%a o!e$ Chennai$ >y'e!a)a'$ @o kata$ Ne# De hi$ Pune an' &any othe! "ities+ With a (ision of *!o(i'in% easy a""ess to its *o i"yho 'e!s$ LIC has aun"he' its SATELLITE SABPAR@ offi"es+ The sate ite offi"es a!e s&a e!$ eane! an' " ose! to the "usto&e!+ The 'i%ita i1e' !e"o!'s of the sate ite offi"es #i se!(i"in% an' &any othe! "on(enien"es in the futu!e+ LIC "ontinues to )e the 'o&inant ife insu!e! e(en in the i)e!a i1e' s"ena!io of In'ian insu!an"e an' is &o(in% fast on a ne# %!o#th t!aIe"to!y su!*assin% its o#n *ast !e"o!'s+ LIC has issue' o(e! one "!o!e *o i"ies 'u!in% the "u!!ent yea!+ It has "!osse' the &i estone of issuin% 9$69$.2$:44 ne# *o i"ies )y 94th O"t$ 2664$ *ostin% a hea thy %!o#th !ate of 97+7A5 o(e! the "o!!es*on'in% *e!io' of the *!e(ious yea!+ F!o& then to no#$ LIC has "!osse' &any &i estones an' has set un*!e"e'ente' *e!fo!&an"e !e"o!'s in (a!ious as*e"ts of ife insu!an"e )usiness+ The sa&e &oti(es #hi"h ins*i!e' ou! fo!efathe!s to )!in% insu!an"e into e0isten"e in this "ount!y ins*i!e us at LIC to take this &essa%e of *!ote"tion to i%ht the a&*s of se"u!ity in as &any ho&es as *ossi) e an' to he * the *eo* e in *!o(i'in% se"u!ity to thei! fa&i ies+ So&e of the i&*o!tant &i estones in the ife insu!an"e )usiness in In'ia a!eD 9?9?D O!ienta Life Insu!an"e Co&*any$ the fi!st ife insu!an"e "o&*any on In'ian soi sta!te' fun"tionin%+ 9?A6D =o&)ay Butua Life Assu!an"e So"iety$ the fi!st In'ian ife insu!an"e "o&*any sta!te' its )usiness+ 9:92D The In'ian Life Assu!an"e Co&*anies A"t ena"te' as the fi!st statute to !e%u ate the ife insu!an"e )usiness+ fa"i itate any#he!e

92

9:2?D The In'ian Insu!an"e Co&*anies A"t ena"te' to ena) e the %o(e!n&ent to "o e"t statisti"a info!&ation a)out )oth ife an' nonC ife insu!an"e )usinesses+ 9:.?D Ea! ie! e%is ation "onso i'ate' an' a&en'e' to )y the Insu!an"e A"t #ith the o)Ie"ti(e of *!ote"tin% the inte!ests of the insu!in% *u) i"+ 9:47D 234 In'ian an' fo!ei%n insu!e!s an' *!o(i'ent so"ieties a!e taken o(e! )y the "ent!a %o(e!n&ent an' nationa i1e'+ LIC fo!&e' )y an A"t of Pa! ia&ent$ (i1+ LIC A"t$ 9:47$ #ith a "a*ita "ont!i)ution of Rs+ 4 "!o!e f!o& the 8o(e!n&ent of In'ia+ The 8ene!a insu!an"e )usiness in In'ia$ on the othe! han'$ "an t!a"e its !oots to the T!iton Insu!an"e Co&*any Lt'+$ the fi!st %ene!a insu!an"e "o&*any esta) ishe' in the yea! 9?46 in Ca "utta )y the =!itish+ So&e of the i&*o!tant &i estones in the %ene!a insu!an"e )usiness in In'ia a!eD 9:6AD The In'ian Be!"anti e Insu!an"e Lt'+ set u*$ the fi!st "o&*any to t!ansa"t a " asses of %ene!a insu!an"e )usiness+ 9:4AD 8ene!a Insu!an"e Coun"i $ a #in% of the Insu!an"e Asso"iation of In'ia$ f!a&es a "o'e of "on'u"t fo! ensu!in% fai! "on'u"t an' soun' )usiness *!a"ti"es+ 9:7?D The Insu!an"e A"t a&en'e' to !e%u ate in(est&ents an' set &ini&u& so (en"y &a!%ins an' the Ta!iff A'(iso!y Co&&ittee set u*+ 9:A2D The 8ene!a Insu!an"e =usiness ;Nationa i1ation< A"t$ 9:A2 nationa i1e' the %ene!a insu!an"e )usiness in In'ia #ith effe"t f!o& 9st Hanua!y 9:A.+ 96A insu!e!s a&a %a&ate' an' %!ou*e' into fou! "o&*aniesJ (i1+ the Nationa Insu!an"e Co&*any Lt'+$ the Ne# In'ia Assu!an"e Co&*any Lt'+$ the O!ienta Insu!an"e Co&*any Lt'+ an' the Unite' In'ia Insu!an"e Co&*any Lt'+ 8IC in"o!*o!ate' as a "o&*any+

9.

LIC SUBSIDIARIES
Un ike *!o(isions fo! *!i(ate * aye!s in the insu!an"e se"to!$ the LIC A"t *!o(i'es fo! settin% u* su)si'ia!ies th!ou%h *o i"y ho 'e!s fun'+ It is 'ue to the LIC a"t that LIC of In'ia has a nu&)e! of su)si'ia!ies #hi"h he * it in e(e!a%in% its *otentia to the &a0i&u&$ *!o(i'in% an enhan"e' set of 'i(e!sifie' se!(i"es to its "usto&e!s+ These su)si'ia!ies in" u'e LIC Inte!nationa $ LIC Ne*a $ LIC Lanka$ LIC >ousin% Finan"e an' LIC Butua Fun'+

LIC INERNATIONAL
This is a Ioint (entu!e offsho!e "o&*any *!o&ote' )y LIC #hi"h "o&&en"e' o*e!ations in Hu y$ 9:?: #ith the o)Ie"ti(es of offe!in% USE 'eno&inate' *o i"ies to "ate! to the insu!an"e nee's of NRIs an' *!o(i'in% insu!an"e se!(i"es to ho 'e!s of LIC *o i"ies "u!!ent y !esi'in% in the 8u f+ LIC Inte!nationa o*e!ates in a 8CC "ount!ies+

LIC NEPAL
A Ioint (entu!e "o&*any fo!&e' in 2669 #ith the Kisha 8!ou* of In'ust!ies$ Ne*a +

LIC LANKA
A Ioint (entu!e "o&*any fo!&e' in 266. #ith the =a!t eet 8!ou* of Co&*anies$ S!i Lanka+

LIC HOUSING FINANCE LTD.

The Co&*any is !e"o%ni1e' )y Nationa >ousin% =ank an' iste' on the Nationa Sto"k E0"han%e ;NSE< L =o&)ay Sto"k E0"han%e Li&ite' ;=SE<+ LIC >ousin% Finan"e Lt'+ is one of the a!%est >ousin% Finan"e Co&*any in In'ia+ In"o!*o!ate' on 9:th Hune 9:?: un'e! the Co&*anies A"t$ 9:47$ the "o&*any #as *!o&ote' )y LIC of In'ia an' #ent *u) i" in the yea! 9::3+ Its &ain o)Ie"ti(e is to *!o(i'e on% 93

te!& finan"e fo! "onst!u"tion o! *u!"hase of houses o! a*a!t&ents+ It has a Du)ai offi"e+

LIC MUTUL FUND LTD.

Life Insu!an"e Co!*o!ation of In'ia set u* LIC Butua Fun' on 9:th Hune 9:?: an' "ont!i)ute' Rs+ 2 C!o!es to#a!'s the "o!*us of the Fun'+ LIC Butua Fun' #as "onstitute' as a T!ust in a""o!'an"e #ith the *!o(isions of the In'ian T!ust A"t$ 9??2+ The!e a!e so&e othe! su)si'ia!ies of LIC #hi"h a!e

1. LIC Mutu ! Fu"# A$$%t M " &%'%"t Co'( ") Lt#. 2. LIC HFL C *% Ho'%$ Lt#. +. LICHFL A$$%t M " &%'%"t Co'( ") P*,- t% L,',t%#. .. LICHFL T*u$t%% Co'( ") P*,- t% L,',t%#. /. LICHFL F," "0, ! S%*-,0%$ L,',t%#1 %t0.

94

WHAT IS LIFE INSURANCE2

Life insu!an"e is a "ont!a"t that * e'%es *ay&ent of an a&ount to the *e!son assu!e' ;o! his no&inee< on the ha**enin% of the e(ent insu!e' a%ainst+ The "ont!a"t is (a i' fo! *ay&ent of the insu!e' a&ount 'u!in%D

The 'ate of &atu!ity$ o! S*e"ifie' 'ates at *e!io'i" inte!(a s$ o! Unfo!tunate 'eath$ if it o""u!s ea! ie!+ A&on% othe! thin%s$ the "ont!a"t a so *!o(i'es fo! the *ay&ent of *!e&iu& *e!io'i"a y to the Co!*o!ation )y the *o i"yho 'e!+ Life insu!an"e is uni(e!sa y a"kno# e'%e' to )e an institution$ #hi"h e i&inates ,!isk,$ su)stitutin% "e!tainty fo! un"e!tainty an' "o&es to the ti&e y ai' of the fa&i y in the unfo!tunate e(ent of 'eath of the )!ea'#inne!+ =y an' a!%e$ ife insu!an"e is "i(i i1ationJs *a!tia so ution to the *!o) e&s "ause' )y 'eath+ Life insu!an"e$ in sho!t$ is "on"e!ne' #ith t#o ha1a!'s that stan' a"!oss the ifeC*ath of e(e!y *e!sonD 9+ 2+ That of 'yin% *!e&atu!e y ea(es a 'e*en'ent fa&i y to fen' fo! itse f+ That of i(in% ti o ' a%e #ithout (isi) e &eans of su**o!t+

97

L,f% I"$u* "0% 3$. Ot4%* S -,"&$

Co"t* 0t of I"$u* "0%5
A "ont!a"t of insu!an"e is a "ont!a"t of ut&ost %oo' faith te"hni"a y kno#n as u)e!!i&a fi'es+ The 'o"t!ine of 'is" osin% a &ate!ia fa"ts is e&)o'ie' in this

i&*o!tant *!in"i* e$ #hi"h a** ies to a fo!&s of insu!an"e+ At the ti&e of takin% a *o i"y$ *o i"yho 'e! shou ' ensu!e that a /uestions in the *!o*osa fo!& a!e "o!!e"t y ans#e!e'+ Any &is!e*!esentation$ nonC'is" osu!e o! f!au' in any 'o"u&ent ea'in% to the a""e*tan"e of the !isk #ou ' !en'e! the insu!an"e "ont!a"t nu an' (oi'+

P*ot%0t,o"5
Sa(in%s th!ou%h ife insu!an"e %ua!antee fu *!ote"tion a%ainst !isk of 'eath of the sa(e!+ A so$ in "ase of 'e&ise$ ife insu!an"e assu!es *ay&ent of the enti!e a&ount assu!e' ;#ith )onuses #he!e(e! a** i"a) e< #he!eas in othe! sa(in%s s"he&es$ on y the a&ount sa(e' ;#ith inte!est< is *aya) e+

A,# to T4*,ft5
Life insu!an"e en"ou!a%es ,th!ift,+ It a o#s on%Cte!& sa(in%s sin"e *ay&ents "an )e &a'e effo!t ess y )e"ause of the ,easy insta &ent, fa"i ity )ui t into the s"he&e+ ;P!e&iu& *ay&ent fo! insu!an"e is eithe! &onth y$ /ua!te! y$ ha f yea! y o! yea! y<+ Fo! e0a&* eD The Sa a!y Sa(in% S"he&e *o*u a! y kno#n as SSS *!o(i'es a "on(enient &etho' of *ayin% *!e&iu& ea"h &onth )y 'e'u"tion f!o& one,s sa a!y+ In this "ase the e&* oye! 'i!e"t y *ays the 'e'u"te' *!e&iu& to LIC+ The Sa a!y Sa(in% S"he&e is i'ea fo! any institution o! esta) ish&ent su)Ie"t to s*e"ifie' te!&s an' "on'itions+

L,6u,#,t)5
In "ase of insu!an"e$ it is easy to a"/ui!e oans on the so e se"u!ity of any *o i"y that 9A

has a"/ui!e' oan (a ue+ =esi'es$ a ife insu!an"e *o i"y is a so %ene!a y a""e*te' as se"u!ity$ e(en fo! a "o&&e!"ia oan+

T 7 R%!,%f5
Life Insu!an"e is the )est #ay to enIoy ta0 'e'u"tions on in"o&e ta0 an' #ea th ta0+ This is a(ai a) e fo! a&ounts *ai' )y #ay of *!e&iu& fo! ife insu!an"e su)Ie"t to in"o&e ta0 !ates in fo!"e+ Assesses "an a so a(ai of *!o(isions in the a# fo! ta0 !e ief+ In su"h "ases the assu!e' in effe"t *ays a o#e! *!e&iu& fo! insu!an"e than othe!#ise+

Mo"%) W4%" You N%%# It5

A *o i"y that has a suita) e insu!an"e * an o! a "o&)ination of 'iffe!ent * ans "an )e effe"ti(e y use' to &eet "e!tain &oneta!y nee's that &ay a!ise f!o& ti&eCtoCti&e+ Chi '!en,s e'u"ation$ sta!tCinC ife o! &a!!ia%e *!o(ision o! e(en *e!io'i"a nee's fo! "ash o(e! a st!et"h of ti&e "an )e ess st!essfu #ith the he * of these *o i"ies+ A te!nati(e y$ *o i"y &oney "an )e &a'e a(ai a) e at the ti&e of one,s !eti!e&ent f!o& se!(i"e an' use' fo! any s*e"ifi" *u!*ose$ su"h as$ *u!"hase of a house o! fo! othe! in(est&ents+ A so$ oans a!e %!ante' to *o i"yho 'e!s fo! house )ui 'in% o! fo! *u!"hase of f ats ;su)Ie"t to "e!tain "on'itions<+

W4o C " Bu) A Po!,0)2

Any *e!son #ho has attaine' &aIo!ity an' is e i%i) e to ente! into a (a i' "ont!a"t "an insu!e hi&se f2he!se f an' those in #ho& he2she has insu!a) e inte!est+ Po i"ies "an a so )e taken$ su)Ie"t to "e!tain "on'itions$ on the ife of one,s s*ouse o! "hi '!en+ Whi e un'e!#!itin% *!o*osa s$ "e!tain fa"to!s su"h as the *o i"yho 'e!Js state of hea th$ the *!o*onent,s in"o&e an' othe! !e e(ant fa"to!s a!e "onsi'e!e' )y the Co!*o!ation+

I"$u* "0% Fo* Wo'%"

9?

P!io! to nationa i1ation ;9:47<$ &any *!i(ate insu!an"e "o&*anies #ou ' offe! insu!an"e to fe&a e i(es #ith so&e e0t!a *!e&iu& o! on !est!i"ti(e "on'itions+ >o#e(e!$ afte! nationa i1ation of ife insu!an"e$ the te!&s un'e! #hi"h ife insu!an"e is %!ante' to fe&a e i(es ha(e )een !e(ie#e' f!o& ti&eCtoCti&e+ At *!esent$ #o&en #ho #o!k an' ea!n an in"o&e a!e t!eate' at *a! #ith &en+ In othe! "ases$ a !est!i"ti(e " ause is i&*ose'$ on y if the a%e of the fe&a e is u* to .6 yea!s an' if she 'oes not ha(e an in"o&e att!a"tin% In"o&e Ta0+

M%#,0 ! A"# No"-M%#,0 ! S04%'%$

Life insu!an"e is no!&a y offe!e' afte! a &e'i"a e0a&ination of the ife to )e assu!e'+ >o#e(e!$ to fa"i itate %!eate! s*!ea' of insu!an"e an' a so to a(oi' in"on(enien"e$ LIC has )een e0ten'in% insu!an"e "o(e! #ithout any &e'i"a e0a&ination$ su)Ie"t to "e!tain "on'itions+

W,t4 P*of,t A"# W,t4out P*of,t P! "$

An insu!an"e *o i"y "an )e ,#ith, o! ,#ithout, *!ofit+ In the fo!&e!$ )onuses 'is" ose'$ if any$ afte! *e!io'i"a (a uations a!e a otte' to the *o i"y an' a!e *aya) e a on% #ith the "ont!a"te' a&ount+ In ,#ithout, *!ofit * an the "ont!a"te' a&ount is *ai' #ithout any a''ition+ The *!e&iu& !ate "ha!%e' fo! a ,#ith, *!ofit *o i"y is the!efo!e hi%he! than fo! a ,#ithout, *!ofit *o i"y+

K%)' " I"$u* "0%

@ey&an insu!an"e is taken )y a )usiness fi!& on the ife of key e&* oyee;s< to *!ote"t the fi!& a%ainst finan"ia 'e&ise of the @ey&an+ osses$ #hi"h &ay o""u! 'ue to the *!e&atu!e

OBJECTI3ES OF LIC

9:

S*!ea' Life Insu!an"e #i'e y an' in *a!ti"u a! to the !u!a a!eas an' to the

so"ia y an' e"ono&i"a y )a"k#a!' " asses #ith a (ie# to !ea"hin% a insu!a) e *e!sons in the "ount!y an' *!o(i'in% the& a'e/uate finan"ia "o(e! a%ainst 'eath at a !easona) e "ost+

Ba0i&i1e &o)i i1ation of *eo* e,s sa(in%s )y &akin% insu!an"eC inke'

sa(in%s a'e/uate y att!a"ti(e+

=ea! in &in'$ in the in(est&ent of fun's$ the *!i&a!y o) i%ation to its

*o i"yho 'e!s$ #hose &oney it ho 's in t!ust$ #ithout osin% si%ht of the inte!est of the "o&&unity as a #ho e- the fun's to )e 'e* oye' to the )est a'(anta%e of the in(esto!s as #e as the "o&&unity as a #ho e$ kee*in% in (ie# nationa *!io!ities an' o) i%ations of att!a"ti(e !etu!n+

Con'u"t )usiness #ith ut&ost e"ono&y an' #ith the fu !ea i1ation that the

&oneys )e on% to the *o i"yho 'e!s+

A"t as t!ustees of the insu!e' *u) i" in thei! in'i(i'ua an' "o e"ti(e

"a*a"ities+

Beet the (a!ious ife insu!an"e nee's of the "o&&unity that #ou ' a!ise in the

"han%in% so"ia an' e"ono&i" en(i!on&ent+

In(o (e a *eo* e #o!kin% in the Co!*o!ation to the )est of thei! "a*a)i ity in

fu!the!in% the inte!ests of the insu!e' *u) i" )y *!o(i'in% effi"ient se!(i"e #ith "ou!tesy+

P!o&ote a&on%st a

a%ents an' e&* oyees of the Co!*o!ation a sense of

*a!ti"i*ation$ *!i'e an' Io) satisfa"tion th!ou%h 'is"ha!%e of thei! 'uties #ith 'e'i"ation to#a!'s a"hie(e&ent of Co!*o!ate O)Ie"ti(e+

MISSION83ISSION
MISSION
26

FE0* o!e an' enhan"e the /ua ity of ife of *eo* e th!ou%h finan"ia se"u!ity )y *!o(i'in% *!o'u"ts an' se!(i"es of as*i!e' att!i)utes #ith "o&*etiti(e !etu!ns$ an' )y !en'e!in% !esou!"es fo! e"ono&i" 'e(e o*&ent+F

3ISSION
FA t!ansCnationa y "o&*etiti(e finan"ia "on% o&e!ate of si%nifi"an"e to so"ieties an' P!i'e of In'ia+F

BOARD OF DIRECTORS
Be&)e!s on the =oa!' of the Co!*o!ation

29

1. C4 ,*' "5 Sh!i+ T+S+ KiIayan 2. M " &,"& D,*%0to*5 Sh!i+ D+@+ Beh!ot!a +. M " &,"& D,*%0to*5 Sh!i+ Tho&as Bathe# T+ .. M " &,"& D,*%0to*5 Sh!i+ A+@+ Das%u*ta /. F," "0% S%0*%t *)5 Sh!i+ Ashok Cha# a ;Binist!y of Finan"e$ 8o(t+ of In'ia< 9. A##,t,o" ! S%0*%t *)D
Sh!i+ 8+C+ Chatu!(e'i ;De*a!t&ent of Finan"ia

Se!(i"es$ Binist!y of Finan"e$ 8o(t+ of In'ia+<

:. C4 ,*' " 0u' M " &,"& D,*%0to*5 Sh!i+ Mo%esh Lohiya ;8IC of In'ia< ;. C4 ,*' " < M " &,"& D,*%0to*5 Sh!i+ T+C+ Kenkat Su)!a&anian ;E0*o!t
I&*o!t =ank of In'ia<

=. D!+ Soo!ana' RaIashekh!an 1>. Sh!i+ Bonis R+ @i'#ai

22

AWARDS AND ACHI3EMENTS

B* "# E6u,t) Mo$t T*u$t%# B* "# Go!#%" P% 0o0? I""o- t,-% P*o#u0t 8 2>>= To( ," I"$u* "0% C t%&o*) S%*-,0% A@ *# A 2>>=

Lo) !t) A@ *#$ - 2>>=

R% #%*$ D,&%$t T*u$t%# B* "# A@ *# 2>>= ," t4% P! t,"u' 0 t%&o*)

CNBC A@

B Co"$u'%* A@ *#$ 2>>;

NDT3 P*of,t Bu$,"%$$ L% #%*$4,( A#a!' 266?

2.

INDYC$

S,!-%*

A@ *#

fo*

B%$t INDYC$ S,!-%* A@ *# fo* B%$t ," Hou$% M & B,"%

Co*(o* t% F,!'

IT USER 2>>; NASCOM

S%!%0t%# Bu$,"%$$ Su(%* D* "# I"#, 2>>;

ASIA BRAND CONGRESS BRAND P,t04 A@ *# -E R "? 1 E I"#, C$ To( LEADERSHIP AWARD 2>>; /> $%*-,0% B* "#$

23

Lo) !t) A@ *#$ 2>>; - I"$u* "0% SKOCH C4 !!%"&%*$ A@ *# 2>>; fo* S%0to* J%%- " M #4u*

R% #%*$ D,&%$t T*u$t%# B* "# A@ *# Go!#%" P% 0o0? A@ *# fo* E70%!!%"0% 2>>; ," t4% P! t,"u' 0 t%&o*)+ ," Co*(o* t% Go-%*" "0%

W%D 1; G%",u$ of t4% @%D @ *#$ 2>>:

24

CHAPTER-+ OBJECTI3E OF THE STUDY

27

PURPOSE OF THE STUDY

The *u!*ose )ehin' the stu'y of LIFE INSURANCE CORPORATION OF INDIA is to un'e!stan' the "o&*aniesJ )a"k%!oun' as #e as the natu!e of the (a!ious

*!o'u"ts offe!e' o(e! &any yea!s in In'ia+ Pu!*ose is to stu'y the *!o'u"ts an' thei! )enefits to "usto&e!s+ This %i(es a )!ief i'ea of the natu!e of *!o'u"ts of the "o&*any+

OBJECTI3ES OF THE STUDY

The o)Ie"ti(es )ehin' the stu'y of the * ans an' *o i"ies of LIFE INSURANCE CORPORATION OF INDIA a!eD 9+ To i&*a!t kno# e'%e a)out the histo!y an' o)Ie"ti(es of the "o&*any an' a so its 'iffe!ent su)si'ia!ies+ 2+ To a#a!e the !ea'e!s a)out the 'iffe!ent * ans an' *o i"ies *!o(i'e' )y LIC$ the!e (a ue an' )enefits to its "usto&e!s+

2A

CHAPTER-.

POLICIES

2?

POLICIES FSCHEMESG
Life Insu!an"e Co!*o!ation of In'ia *!o(i'es nu&)e! of *!o'u"ts to its "ostu&e!s+ LIC 'iffe!entiate' thei! *o i"ies into fi(e 'iffe!ent ty*es #hi"h a!eD 9+ Insu!an"e P ans 2+ Pension P ans .+ Unit P ans 3+ S*e"ia P ans 4+ 8!ou* S"he&e

INSURANCE PLANS
As in'i(i'ua s it is inhe!ent to 'iffe!+ Ea"h ,"#,-,#u !H$ ,"$u* "0% "%%#$ "# *%6u,*%'%"t$ *% #,ff%*%"t f*o' t4 t of t4% ot4%*$. LIC$ I"$u* "0% P! "$ *% (o!,0,%$ t4 t t !? to )ou ,"#,-,#u !!) "# &,-% )ou t4% 'o$t $u,t D!% o(t,o"$ t4 t 0 " f,t )ou* *%6u,*%'%"t.

J%%- " A"u* & CDA E"#o@'%"t 3%$t,"& At 21 CDA E"#o@'%"t 3%$t,"& At 1; J%%- " K,$4o*% C4,!# C *%%* P! " C4,!# Fo*tu"% P!u$

Ko' ! J%%- " M **, &% E"#o@'%"t E#u0 t,o" ! A""u,t) P! " J%%- " C44 ) C4,!# Futu*% P! "

O*

J%%- " A #4 * J%%- " 3,$4@ $

T4% E"#o@'%"t A$$u* "0% Po!,0) T4% E"#o@'%"t A$$u* "0% Po!,0)-L,',t%# P )'%"t J%%- " M,t* FDouD!% Co-%* E"#o@'%"t P! "G J%%- " M,t* FT*,(!% Co-%* E"#o@'%"t P! "G J%%- " A" "# N%@ J " * ?$4 P! " J%%- " A'*,t

J%%- " S4*%%-I 2:

J%%- " P* 'u?4

T4% Mo"%) B 0? Po!,0)-2> Y% *$ T4% Mo"%) B 0? Po!,0)-2/ Y% *$ J%%- " Su* D4,-1/ Y% *$ J%%- " Su* D4,-2> Y% *$ J%%- " Su* D4,-2/ Y% *$ B,' B 04 t

J%%- " B4 * t, - I

T4% W4o!% L,f% Po!,0) T4% W4o!% L,f% Po!,0)- L,',t%# P )'%"t T4% W4o!% L,f% Po!,0)- S,"&!% P*%',u' J%%- " A" "# J%%- " T * "&

T@o Y% * T%'(o* *) A$$u* "0% Po!,0) T4% Co"-%*t,D!% T%*' A$$u* "0% Po!,0) A"'o! J%%- "-I A'u!) J%%- "-I

J%%- " S t4, P!u$ J%%- " S t4,

Mo*t& &% R%#%'(t,o"

PENSION PLANS
Pension P ans a!e In'i(i'ua P ans that %a1e into you! futu!e an' fo!esee finan"ia sta)i ity 'u!in% you! o ' a%e+ These *o i"ies a!e &ost suite' fo! senio! "iti1ens an' those * annin% a se"u!e futu!e$ so that you ne(e! %i(e u* on the )est thin%s in ife+

J%%- " N,#4, .6

J%%- " A?$4 )-3I N%@ J%%- " D4 * -I N%@ J%%- " Su* ?$4 -I

UNIT PLANS
Unit * ans a!e in(est&ent * ans fo! those #ho *% !,B% t4% @o*t4 of 4 *#-% *"%# 'o"%). T4%$% (! "$ 4%!( )ou $%% )ou* $ -,"&$ ),%!# *,04 D%"%f,t$ "# 4%!( )ou $ -% t 7 %-%" ,f )ou #o"Ct 4 -% 0o"$,$t%"t ,"0o'%.

M *?%t P!u$ I P*of,t P!u$ Fo*tu"% P!u$ Mo"%) P!u$-I C4,!# Fo*tu"% P!u$

SPCIAL PLANS
LICJs S*e"ia P ans a!e not * ans )ut o**o!tunities that kno"k on you! 'oo! on"e in a ifeti&e+ These * ans a!e a *e!fe"t ) en' of insu!an"e$ in(est&ent an' a ifeti&e of ha**inessN

N%@ B,' Go!#

H% !t4 P*ot%0t,o" P!u$ H% !t4 P!u$

B,' N,-%$4 2>>/ J%%- " S * ! J%%- " M #4u*

.9

J%%- " M "& !

GROUP SCHEME
8!ou* Insu!an"e S"he&e is ife insu!an"e *!ote"tion to %!ou*s of *eo* e+ This s"he&e is i'ea fo! e&* oye!s$ asso"iations$ so"ieties et"+ an' a o#s you to enIoy %!ou* )enefits at !ea y o# "osts+

G*ou( LICC$ Su(%* ""u t,o" P!u$ G*ou( T%*' I"$u* "0% S04%'%$ G*ou( I"$u* "0% S04%'% ," L,%u Of EDLI G*ou( G* tu,t) S04%'% G*ou( Su(%* A""u t,o" S04%'% G*ou( S -,"&$ L,"?%# I"$u* "0% S04%'% G*ou( L% -% E"0 $4'%"t S04%'% G*ou( Mo*t& &% R%#%'(t,o" A$$u* "0% S04%'% G* tu,t) P!u$ G*ou( C*,t,0 ! I!!"%$$ R,#%*

J " S4*%% B,' YoI " FJBYG S4,?$4 S 4 )o& YoI " A ' A#', B,' YoI "

.2

PRODUCTS BY LIC
INSURANCE PLANS

9+ J%%- " A" "#

F% tu*%$
P*o#u0t $u'' *)5 This * an is a "o&)ination of En'o#&ent Assu!an"e an' Who e Life * ans+ It *!o(i'es finan"ia *!ote"tion a%ainst 'eath th!ou%hout the ifeti&e of the ife assu!e' #ith the *!o(ision of *ay&ent of a u&* su& at the en' of the se e"te' te!& in "ase of his su!(i(a + P*%',u'5 P!e&iu&s a!e *aya) e yea! y$ ha fCyea! y$ /ua!te! y$ &onth y o! th!ou%h sa a!y ..

'e'u"tions as o*te' )y you th!ou%hout the se e"te' te!& of the *o i"y o! ti ea! ie! 'eath+ Bo"u$%$D This is a #ithC*!ofit * an an' *a!ti"i*ates in the *!ofits of the Co!*o!ationJs ife insu!an"e )usiness+ It %ets a sha!e of the *!ofits in the fo!& of )onuses+ Si&* e Re(e!siona!y =onuses a!e 'e" a!e' *e! thousan' Su& Assu!e' annua y at the en' of ea"h finan"ia yea!+ On"e 'e" a!e'$ they fo!& *a!t of the %ua!antee' )enefits of the * an+ =onuses #i )e a''e' 'u!in% the se e"te' te!& o! ti 'eath$ if it o""u!s ea! ie!+ Fina ;A''itiona < =onus &ay a so )e *aya) e *!o(i'e' the *o i"y has !un fo! "e!tain &ini&u& *e!io'

B%"%f,t$
B%"%f,t$ ," 0 $% of #% t4 #u*,"& t4% $%!%0t%# t%*'5 The Su& Assu!e' a on% #ith the (este' )onuses is *aya) e on 'eath in a u&* su&+ B%"%f,t$ ," 0 $% of $u*-,- ! to t4% %"# of $%!%0t%# t%*'5 The Su& Assu!e' a on% #ith the (este' )onuses is *aya) e in a u&* su& on su!(i(a to the en' of the te!&+ An a''itiona Su& Assu!e' is *aya) e on 'eath the!eafte!+ A00,#%"t B%"%f,t5 An a''itiona Su& Assu!e' ;su)Ie"t to a i&it of Rs+4 akh< is *aya) e in a u&* su& on 'eath 'ue to a""i'ent u* to a%e A6 of ife assu!e'+ In "ase of *e!&anent 'isa)i ity of the ife assu!e' 'ue to a""i'ent this a''itiona Su& assu!e' is *aya) e in insta &ents+ Su((!%'%"t *)8E7t* B%"%f,t$D These a!e the o*tiona )enefits that "an )e a''e' to you! )asi" * an fo! e0t!a *!ote"tion2o*tion+ An a''itiona *!e&iu& is !e/ui!e' to )e *ai' fo! these )enefits+ Su**%"#%* 3 !u%D .3

=uyin% a ife insu!an"e "ont!a"t is a on%Cte!& "o&&it&ent+ >o#e(e!$ su!!en'e! (a ues a!e a(ai a) e on the * an on ea! ie! te!&ination of the "ont!a"t+ Gu * "t%%# Su**%"#%* 3 !u%5 The *o i"y &ay )e su!!en'e!e' afte! it has )een in fo!"e fo! . yea!s o! &o!e+ The %ua!antee' su!!en'e! (a ue is .65 of the )asi" *!e&iu&s *ai' e0" u'in% the fi!st yea!Js *!e&iu&+ Any e0t!a *!e&iu&;s< *ai' an' *!e&iu&;s< to#a!'s A""i'ent =enefit a!e a so e0" u'e'+ Co*(o* t,o"H$ (o!,0) o" $u**%"#%*$5 In *!a"ti"e$ the Co!*o!ation #i *ay a S*e"ia Su!!en'e! Ka ue G #hi"h is eithe! e/ua to o! &o!e than the 8ua!antee' Su!!en'e! Ka ue+ The )enefit *aya) e on su!!en'e! !ef e"ts the 'is"ounte' (a ue of the !e'u"e' " ai& a&ount that #ou ' )e *aya) e on 'eath o! at &atu!ity+ This (a ue #i 'e*en' on the 'u!ation fo! #hi"h *!e&iu&s ha(e )een *ai' an' the *o i"y 'u!ation at the 'ate of su!!en'e!+ In so&e "i!"u&stan"es$ in "ase of ea! y te!&ination of the *o i"y$ the su!!en'e! (a ue *aya) e &ay )e ess than the tota *!e&iu& *ai'+

2. J%%- " S4*%%-I

P*o#u0t $u'' *)5
This is an En'o#&ent Assu!an"e * an offe!in% the "hoi"e of &any "on(enient *!e&iu&s *ayin% te!&s+ It *!o(i'es finan"ia *!ote"tion a%ainst 'eath th!ou%hout the te!& of * an #ith the *ay&ent of &atu!ity a&ount on su!(i(a to the en' of the *o i"y te!&+ P*%',u'$5 P!e&iu&s a!e *aya) e yea! y$ ha fCyea! y$ /ua!te! y o! th!ou%h Sa a!y 'e'u"tions$ as o*te' )y you$ th!ou%hout the *!e&iu& *ayin% te!& o! ti ea! ie! 'eath+ A te!nati(e y *!e&iu& &ay )e *ai' in one u&* su& ;Sin% e *!e&iu&<+ .4

Gu * "t%%# A##,t,o"$D The *o i"y *!o(i'es fo! the 8ua!antee' A''itions at the !ate of Rs+ 462C *e! thousan' Su& Assu!e' fo! ea"h "o&* ete' yea! fo! fi!st fi(e yea!s of the *o i"y+ The 8ua!antee' A''itions a!e *aya) e a on% #ith the =asi" Su& Assu!e' at the ti&e of " ai&+ Bo"u$%$D The *o i"y *a!ti"i*ates in the *!ofits of the Co!*o!ationJs ife insu!an"e )usiness f!o& the 7th yea! on#a!'s+ It #i %et a sha!e of the *!ofits in the fo!& of )onuses+ Si&* e Re(e!siona!y =onuses #i )e 'e" a!e' *e! thousan' =asi" Su& Assu!e' annua y at the en' of ea"h finan"ia yea!+ On"e 'e" a!e'$ they #i fo!& *a!t of the %ua!antee' )enefits of the * an+

.7

B%"%f,t$
D% t4 B%"%f,t5 The Su& Assu!e' a on% #ith %ua!antee' a''itions an' (este' )onuses$ if any$ is *aya) e in a u&* su& on 'eath of the ife assu!e' 'u!in% the *o i"y te!&+ M tu*,t) B%"%f,tD The Su& Assu!e' a on% #ith %ua!antee' a''itions an' !e(e!siona!y )onuses$ if any is *aya) e in a u&* su& on su!(i(a to the en' of the *o i"y te!&+

Su((!%'%"t *)8E7t* B%"%f,t$D These a!e the o*tiona )enefits that "an )e a''e' to you! )asi" * an fo! e0t!a *!ote"tion2o*tion+ An a''itiona *!e&iu& is !e/ui!e' to )e *ai' fo! these )enefits+ Su**%"#%* 3 !u%5 =uyin% a ife insu!an"e "ont!a"t is a on%Cte!& "o&&it&ent+ >o#e(e!$ su!!en'e! (a ue is a(ai a) e on the * an on ea! ie! te!&ination of the "ont!a"t+ Gu * "t%%# Su**%"#%* 3 !u%5 The *o i"y &ay )e su!!en'e!e' afte! it has )een in fo!"e fo! . yea!s o! &o!e+ The %ua!antee' su!!en'e! (a ue is .65 of the )asi" *!e&iu&s *ai' e0" u'in% the fi!st yea!Js *!e&iu&+ In "ase of a sin% e *!e&iu& *o i"y the %ua!antee' su!!en'e! (a ue is :65 of the sin% e *!e&iu& *ai' e0" u'in% any e0t!a *!e&iu&+

Co*(o* t,o"H$ (o!,0) o" $u**%"#%*$5 In *!a"ti"e$ the Co!*o!ation #i *ay a S*e"ia Su!!en'e! Ka ue G #hi"h is eithe! e/ua to o! &o!e than the 8ua!antee' Su!!en'e! Ka ue+ The )enefit *aya) e on su!!en'e! !ef e"ts the 'is"ounte' (a ue of the !e'u"e' " ai& a&ount that #ou ' )e *aya) e on 'eath o! at &atu!ity+ This (a ue #i 'e*en' on the 'u!ation fo! #hi"h *!e&iu&s ha(e )een *ai' an' the *o i"y 'u!ation at the 'ate of su!!en'e!+ In so&e

.A

"i!"u&stan"es$ in "ase of ea! y te!&ination of the *o i"y$ the su!!en'e! (a ue *aya) e &ay )e ess than the tota *!e&iu& *ai'+

+. B,' B 04 t
W4 t ,$ B,' B 04 t2
LICJs =i&a =a"hat is a &oneyC)a"k *o i"y #hi"h offe!s finan"ia se"u!ity an' assu!an"e to the *o i"y ho 'e! an' his fa&i y+ =i&a =a"hat !e/ui!es the *o i"y ho 'e! to *ay on y one *!e&iu&+ The a&ount *ai' fo! the *!e&iu& 'e*en's on the 'u!ation of the *o i"y taken an' ife insu!an"e is a(ai a) e ti the 'ate of &atu!ity+ W4 t ot4%* D%"%f,t$ #o I *%0%,-% #u*,"& t4% $(%0,f,%# #u* t,o" of t4% (o!,0)2

Fo! a te!& of : yea!sD The *o i"y ho 'e! #i !e"ei(e 945 of the su& assu!e' at the en' of e(e!y .!' an' 7th *o i"y yea!+

.?

Fo! a te!& 92 yea!sD The *o i"y ho 'e! #i !e"ei(e 945 of the su& assu!e' at the en' of e(e!y .!'$ 7th an' :th *o i"y yea!+

Fo! a te!& 94 yea!sD The *o i"y ho 'e! #i !e"ei(e945 of the su& assu!e' at the en' of e(e!y .!'$ 7th$ :th an' 92th *o i"y yea!+ W4 t ##,t,o" ! D%"%f,t$ #o I &%t u(o" ' tu*,t)2 If the *o i"y ho 'e! out i(es the 'u!ation of the *o i"y$ at the ti&e of &atu!ity$ a sin% e *!e&iu& *ay&ent ;e0" u'in% e0t!a *!e&iu&< is &a'e a on% #ith oya ty a''itions$ Ho@ 'u04 ,"$u* "0% #o I &%t2 The *o i"y ho 'e! is insu!e' fo! an a&ount e/ua to the su& assu!e'+ W4 t Dout t4% ,"$t !!'%"t *%0%,-%# !*% #)2 The insu!an"e "o(e! is i!!es*e"ti(e of the insta &ents !e"ei(e'+ if any+

W4%" ' I %!,&,D!% fo* t4% &u * "t%%# $u**%"#%* - !u%2

.:

The %ua!antee' su!!en'e! (a ue is a(ai a) e on y afte! "o&* etion of at east one *o i"y yea!+ This (a ue is e/ua to :6 5 of the sin% e *!e&iu& *ai' ;e0" u'in% e0t!a *!e&iu&<+ W4 t ot4%* D%"%f,t$ #o%$ t4,$ ,"$u* "0% 0o-%* off%*2 =i&a =a"hat is the on y &oneyC)a"k *o i"y that offe!s a oan fa"i ity+ The !ate of inte!est fo! this #i )e 'ete!&ine' f!o& ti&e to ti&e )y the "o!*o!ation+ P!esent y the !ate of inte!est is :5 *+a+ *aya) e ha fCyea! y+ It a so offe!s othe! )enefits ike the 94 'ay "oo in% off *e!io'$ %!a"e *e!io' an' !e(i(a +

36

W4o ,$ %!,&,D!% fo* t4% (o!,0)2 A*% t4%*% ot4%* 0o"#,t,o"$ o* *%$t*,0t,o"$2 The fo o#in% a!e the !e/ui!e&ents that one nee's to )e a#a!e of )efo!e a** yin% fo! this *o i"yD O The *e!son a** yin% fo! the *o i"y shou ' ha(e "o&* ete' 94 yea!s an' shou ' not )e o 'e! than 77 yea!s+ O The *o i"y #i &atu!e #hen the *e!son is A4 yea!s o '+ O The!e is a "hoi"e of th!ee te!&s to "hoose f!o& ;:$ 92 an' 94 yea!s< fo! the *o i"y 'e*en'in% on the a%e an' !e/ui!e&ent of the a** i"ant+ O The &ini&u& su& that nee's to )e assu!e' is Rs 26$6662C an' the!e is no i&it on the a&ount that "an )e assu!e'+ O It is i&*o!tant to note that the su& assu!e' shou ' )e in &u ti* es of Rs 46662C on y+ O The *o i"y !e/ui!es the ho 'e! to *ay a sin% e *!e&iu&+

39

P*%',u' ( )'%"t
S,"&!% P*%',u' The sa&* e *!e&iu& !ates a!e as un'e!D C A%e 94 26 24 .6 .4 36 34 46 44 76 74 Annua P!e&iu& *e! 9666 SA : A97+36 A9A+26 A9A+44 A9?+34 A29+64 A24+?6 A.3+96 A37+76 A72+74 A?3+?6 ?97+24 92 AA9+.4 AA9+?4 AA2+24 AA.+.4 AA4+A4 A?6+24 A?A+76 A:A+:6 ?99+:4 ?.9+.6 C 94 ?63+66 ?63+36 ?63+:4 ?67+96 ?6?+44 ?92+:4 ?9:+76 ?2?+:4 ?39+A4 ?4:+.4 C

32

W4 t ,"0%"t,-%$ #o I &%t fo* 4,&4%* $u' $$u*%#2 LetJs take an e0a&* e of a .6 yea! o ' #ith a =i&a =a"hat *o i"y fo! 92 yea!s+ If the su& assu!e' is Rs 34$666 then he has to *ay a *!e&iu& of Rs .3?66+A4+ =ut fo! a su& assu!e' a&ount of Rs 46$666 he #i ha(e to *ay a *!e&iu& of Rs .7A.3+9. on y$ thus %ettin% a 45 !e)ate in *!e&iu&+ Refe! to the ta) e )e o# fo! othe! !e)ate *e!"enta%esD Less than Rs+ 46$666 Rs+ 46$666 an' Less than Rs+9 akh Rs+ 9 akh an' Less than Rs+2 akh Rs+ 2 akh an' a)o(e NIL 45 A5 ?5

.. T4% Co"-%*t,D!% T%*' A$$u* "0% Po!,0)

F% tu*%$
This * an of assu!an"e is 'esi%ne' to &eet the nee's of those #ho a!e initia y una) e to *ay the a!%e! *!e&iu& !e/ui!e' fo! a Who e Life o! En'o#&ent Assu!an"e Po i"y$ )ut ho*e to )e a) e to *ay fo! su"h a *o i"y in the nea! futu!e+ This * an #ou ' )e foun' usefu a so in "ases #he!e it is 'esi!e' to ea(e the fina 'e"ision as to the * an to a ate! 'ate #hen$ *e!ha*s a )ette! "hoi"e "ou ' )e &a'e+ Po i"y ho 'e!s %et an o*tion of "on(e!tin% an *o i"y into en'o#&ent assu!an"e o! i&ite' *ay&ent #ho e ife assu!an"e+ Su,t D!% Fo*5 Fo! a *eo* e #ith ea!ne' in"o&e un'e! Cate%o!y I an' unea!ne' in"o&es un'e! Cate%o!y II$ )asi"a y Stan'a!' an' su)CStan'a!' i(es att!a"tin% EBR " asses I an' II+

3.

B%"%f,t$
Su*-,- ! B%"%f,t Not A** i"a) e D% t4 B%"%f,t the su& assu!e' is *aya) e on y in the e(ent of 'eath of the Life Assu!e' )efo!e the e0*i!y of the s*e"ifie' te!&+

P! " ( * '%t%*$
Bini&u& Ent!y a%e Su& assu!e' ;Rs+< Te!& ;yea!s< 26 ;nea!e! )i!th'ay< 46$666 4 Ba0i&u& 46 9$66$66$666 A

Ba0i&u& *!e&iu& *ayin% Bo'e of Pay&ent *e!io' Mea! y$ >a fCyea! y$ Bonth y$ 44 yea!s Sa a!y S"he&e Sa(in% No Po i"y oan a(ai a) e

Pua!te! y$

33

PENSION PLANS
1. N%@ J%%- " D4 * -I
F% tu*%$
P*o#u0t $u'' *)5 These a!e Defe!!e' Annuity * ans that a o# the *o i"yho 'e! to &ake *!o(ision fo! !e%u a! in"o&e afte! the se e"te' te!&+ P*%',u'$5 P!e&iu&s a!e *aya) e yea! y$ ha fCyea! y$ /ua!te! y$ &onth y o! th!ou%h Sa a!y 'e'u"tion$ as o*te' )y you$ th!ou%hout the te!& of the *o i"y o! ti ea! ie! 'eath+ A te!nati(e y$ the *!e&iu& &ay )e *ai' in one u&* su& ;sin% e *!e&iu&<+ T 7 B%"%f,t$5 Ta0 !e ief un'e! Se"tion ?6""" is a(ai a) e on *!e&iu&s *ai' un'e! Ne# Hee(an Su!aksha I ;Ta) e No+93A<+ The *!e&iu&s *ai' un'e! Ne# Hee(an Dha!a I ;Ta) e No+93?< /ua ify fo! ta0 !e ief un'e! Se"tion ??+ Bo"u$%$D These a!e #ithC*!ofit * ans an' *a!ti"i*ate in the *!ofits of the Co!*o!ationJs annuity 2 *ension )usiness+ Po i"ies %et a sha!e of the *!ofits in the fo!& of )onuses+ Si&* e Re(e!siona!y =onuses a!e 'e" a!e' *e! thousan' Su& Assu!e' annua y at the en' of ea"h finan"ia yea!+ On"e 'e" a!e'$ they fo!& *a!t of the %ua!antee' )enefits of the * an+ Fina ;A''itiona < =onuses &ay a so )e *aya) e *!o(i'e' *o i"y has !un fo! a "e!tain &ini&u& *e!io'+

B%"%f,t$
D% t4 B%"%f,tD On 'eath of the Life Assu!e' 'u!in% the te!& of the *o i"y the )asi" *!e&iu&s *ai'$ e0" u'in% any !i'e! *!e&iu&s o! e0t!a *!e&iu&s$ u* to the 'ate of 'eath a""u&u ate' 34

#ith inte!est at su"h !ates as 'e"i'e' )y the Co!*o!ation #i

)e *aya) e to the

no&inee+ Cu!!ent y$ the inte!est !ate is .5$ 35 o! 4 5 if the 'eath o""u!s #ithin the fi!st 96 yea!s$ 26 yea!s o! the!eafte! !es*e"ti(e y+ M tu*,t) B%"%f,tD At &atu!ity the *o i"yho 'e! "an en"ash u* to a &a0i&u& 245 of the &atu!ity *!o"ee's as a ta0Cf!ee u&* su&+ The )a an"e shou ' )e "o&*u so!i y "on(e!te' to an annuity at the !ates a** i"a) e at the ti&e of &atu!ity of the *o i"y+ The *o i"yho 'e! has the "hoi"e of o*tin% fo! any one of 4 annuity o*tions+ The annuity o*tions a(ai a) e a!eD ;i< annuity *aya) e fo! !e&ain'e! of ife ;ii< annuity *aya) e fo! ife #ith %ua!antee' *e!io' of 4$ 96$ 94 o! 26 yea!s ;iii< Hoint ife an' ast su!(i(o! annuity to the annuitant an' his2 he! s*ouse un'e! #hi"h annuity *aya) e to the s*ouse on 'eath of the *u!"hase! #i )e 465 of that *aya) e to the annuitant ;i(< Life annuity #ith a !etu!n of *u!"hase *!i"e on 'eath of the annuitant ;(< Life annuity in"!easin% at a si&* e !ate of .5 *e! annu& Su((!%'%"t *)8E7t* B%"%f,t$D These a!e the o*tiona )enefits that "an )e a''e' to you! )asi" * an fo! e0t!a *!ote"tion2o*tion+ An a''itiona *!e&iu& is !e/ui!e' to )e *ai' fo! these )enefits+ Su**%"#%* 3 !u%5 =uyin% a ife insu!an"e "ont!a"t is a on%Cte!& "o&&it&ent+ >o#e(e!$ su!!en'e! (a ue is a(ai a) e on the * an on ea! ie! te!&ination of the "ont!a"t+ Gu * "t%%# Su**%"#%* 3 !u%5 The *o i"y &ay )e su!!en'e!e' afte! it has )een in fo!"e fo! 2 yea!s o! &o!e )ut )efo!e the (estin% 'ate+ The %ua!antee' su!!en'e! (a ue is :65 of the )asi"

37

*!e&iu&s *ai' e0" u'in% the fi!st yea!Js *!e&iu&+ In "ase of a sin% e *!e&iu& *o i"y the %ua!antee' su!!en'e! (a ue is a o#e' afte! 2 yea!s f!o& the 'ate of "o&&en"e&ent of the *o i"y+ Co*(o* t,o"H$ (o!,0) o" $u**%"#%*$5 In *!a"ti"e$ the "o&*any #i *ay a S*e"ia Su!!en'e! Ka ue G #hi"h is e/ua to o! hi%he! than the 8ua!antee' Su!!en'e! Ka ue+ The )enefit *aya) e on su!!en'e! !ef e"ts the 'is"ounte' (a ue of the !e'u"e' " ai& a&ount that #ou ' )e *aya) e on 'eath o! at &atu!ity+ This (a ue #i 'e*en' on the 'u!ation fo! #hi"h *!e&iu&s ha(e )een *ai' an' the *o i"y 'u!ation at the 'ate of su!!en'e!+ In so&e "i!"u&stan"es$ in "ase of ea! y te!&ination of the *o i"y$ the su!!en'e! (a ue *aya) e &ay )e ess than the tota *!e&iu& *ai'+

3A

UNIT PLANS-I
1. M *?%t (!u$-I
This is a unit inke' *ension * an #he!ein the *ension is *aya) e afte! a s*e"ifie' *e!io'+ Fou! ty*es of in(est&ent Fun's na&e y =on'$ Se"u!e'$ =a an"e' an' 8!o#th Fun' a!e offe!e'+ Thou%h *!i&a!i y a Pension *!o'u"t$ the * an has &any att!a"ti(e featu!es an' o*tions #hi"h &ake it an i'ea Reti!e&ent so ution fo! the futu!e+ BENEFITS AG - On Vesting: On (estin% of the *o i"y$ the Fun' Ka ue #i )e uti i1e' to *!o(i'e a *ension )ase' on the then *!e(ai in% Annuity !ates+ An o*tion to "o&&ute u* to one thi!' of the *aya) e )enefit in a u&* su& is a(ai a) e+ BG O" D% t45 In e(ent of the unfo!tunate 'eath of the *o i"y ho 'e! the Fun' Ka ue a on% #ith the Ri'e!s$ if any$ #i )e *aya) e in a u&* su& o! as a *ension+ OPTIONS Th!ee att!a"ti(e )enefits$ (i1+ C Life Co(e!$ A""i'ent =enefit an' C!iti"a I ness =enefit a!e a(ai a) e as o*tions o! !i'e!s+ Life o*tion is a(ai a) e #ithin "e!tain i&its 'e*en'in% on the a%e at ent!y of the ife assu!e'+ The othe! o*tions a!e a(ai a) e to a *!o*ose!s #ho ha(e o*te' fo! Life Co(e!+ The /uantu& of the !isk "o(e!s "an a so )e !e'u"e'- su)Ie"t to the &ini&u& i&its$ on"e a yea!+ A *o i"y "an )e taken #ithout any of the !i'e!s a so+ RE3I3AL An att!a"ti(e featu!e of the * an is that *!o(i'e' the *!e&iu&s ha(e )een *ai' fo! a &ini&u& *e!io' of th!ee yea!s$ a the !i'e!s un'e! the *o i"y #i "ontinue fo! a 3?

*e!io' of t#o yea!s f!o& the 'ue 'ate of fi!st un*ai' *!e&iu& )y 'e'u"tion of !e e(ant "ha!%es f!o& the *o i"y fun'+ This *e!io' of t#o yea!s is "a e' the Re(i(a Pe!io'+ Fu!the!$ if *!e&iu&s ha(e )een *ai' fo! a &ini&u& *e!io' of th!ee yea!s$ !e(i(a "an )e effe"te' &e!e y )y *ayin% the a!!ea!s of *!e&iu&$ #ithin the Re(i(a Pe!io'+ PAYMENT OF PREMIUMS P!e&iu&s "an )e *ai' in a u&* su& ;sin% e *!e&iu&< an' a so )y &onth y ;ECS<$ /ua!te! y$ ha fCyea! y an' yea! y &o'es+ CHANGE IN FUND TYPE FSWITCHG The * an a so a o#s a *o i"y ho 'e! to s#it"h f!o& one ty*e of fun' to anothe! u* to fou! ti&es a yea!$ f!ee of "ha!%e+ OTHER FEAUTRES The!e #i )e no s*!ea' )et#een the =i' an' Offe! *!i"e+ The Net Asset Ka ue

;NAK< #i )e 'e" a!e' on a 'ai y )asis+ A''itiona *!e&iu& in &u ti* es of Rs+9$666 "an )e *ai' #ithout any i&it at anyti&e 'u!in% the te!& of *o i"y+

3:

SPECIAL PLANS
1. B,' N,-%$4
F% tu*%$
=i&a Ni(esh 2664 is a * an #ith "o&*oun' !ate of %ua!antee' a''itions an' oya ty a''itions+ This is the !e(ise' (e!sion of ou! *o*u a! =i&a Ni(esh P an 2663 an' is int!o'u"e' to &eet the o(e!#he &in% 'e&an' fo! a sin% e *!e&iu& * an f!o& ou! "usto&e!s+ It is a sin% e *!e&iu&$ i'ea in(est&ent * an fo! those #ho ha(e no !e%u a! in"o&e )ut %oo' *e!io'i"a in"o&e+ =i&a Ni(esh 2664 is a(ai a) e fo! te!&s 4 an' 96 yea!s+ The %ua!antee' su!!en'e! (a ue is *aya) e afte! the *o i"y has !un fo! at east one yea!+ Te!& Assu!an"e Ri'e! is a so a(ai a) e )y *ay&ent of a sin% e *!e&iu& at the o*tion of the *!o*ose!+

B%"%f,t$
Q Gu * "t%%# A##,t,o"$5 8ua!antee' a''itions at the "o&*oun' !ate of Rs+46 *e! thousan' Su& Assu!e' *e! annu& fo! the *o i"y #ith te!& of 4 yea!s an' at the "o&*oun' !ate of Rs+44 *e! thousan' Su& Assu!e' *e! annu& fo! the *o i"y #ith te!& of 96 yea!s+ QLo) !t) A##,t,o"5 De*en'in% u*on the Co!*o!ation,s e0*e!ien"e #ith !e%a!' to &o!ta ity$ inte!est an' e0*enses an' )ase' on te!& of the *o i"y$ Loya ty a''ition$ if any$ &ay )e 'e" a!e' )y the "o!*o!ation an' *ai' on &atu!ity+ QM tu*,t) B%"%f,t5 The =asi" Su& Assu!e' a on% #ith "o&*oun'e' 8ua!antee' A''itions #i )e *aya) e+ Loya ty a''ition$ if any$ #i a so )e a''e' to this )enefit+ QP )'%"t o" #% t45 In "ase of the unfo!tunate 'eath of the Life Assu!e' 'u!in% the te!& of the *o i"y$ Su& Assu!e' a on% #ith the a""!ue' %ua!antee' a''itions #i )e *aya) e+

46

QSu**%"#%* 3 !u%5 Su!!en'e! (a ue is *aya) e afte! the *o i"y has !un at east fo! one yea!+ R,#%*$5 Te!& Assu!an"e !i'e! is a(ai a) e+ E!,&,D,!,t) 0o"#,t,o"$ "# ot4%* *%$t*,0t,o"$ Fo! the Bain P an Bin+ A%e at ent!y Ba0+ A%e at ent!y Po i"y Te!& 9. yea!s "o&* ete' A6 yea!s 4 y!s+ an' 96 y!s Te!& Assu!an"e O*tion 9? yea!s "o&* ete' 46 yea!s 76 yea!s Sa&e as &ain * an Bin+ Su& Assu!e' C Rs+9$66$6662C Ba0+ Su& Assu!e' C An a&ount u* Rs+24$666+ Su& Assu!e' Ba0i&u& i&it+ G to the )asi" Su& Assu!e' fo! Te!& No Assu!an"e su)Ie"t to a &a0i&u& of Rs+24 akh o(e!a un'e! a assu!e'+ P*%',u' R t%$5 Sin% e P!e&iu& !ates fo! Rs+9666 Su& Assu!e' a!e Rs+::4 fo! 4 yea!s te!& an' Rs+ :A7 fo! 96 yea!s te!&The Te!& Ri'e! P!e&iu& 'e*en's on the a%e nea!e! )i!th'ay an' the te!& of the *o i"y+ REBATES 95 of )asi" *!e&iu& on the *!e&iu& in e0"ess of Rs+46$666+ O*tion i&it$ ife *o i"ies of the

Ba0+ Batu!ity A%e A4 yea!s

Rs+466 * us 9+45 of )asi" *!e&iu& on the *!e&iu& in e0"ess of Rs+9$66$666+ LOAN Loan #i Ka ue+ )e a(ai a) e to the *o i"yho 'e!s un'e! this * an #ithin the Su!!en'e!

GROUP SCHEME
49

1. G*ou( T%*' I"$u* "0% S04%'%

AG N tu*% of t4% S04%'%5 8!ou* ;te!&< Insu!an"e S"he&e is &eant to *!o(i'e ife insu!an"e *!ote"tion to %!ou*s of *eo* e+ A'&inist!ation of the s"he&e is on %!ou* )asis an' "ost is o#+ Un'e! 8!ou* ;Te!&< Insu!an"e S"he&e$ ife insu!an"e "o(e! is a o#e' to a the &e&)e!s of a %!ou* su)Ie"t to so&e si&* e insu!a)i ity "on'itions #ithout insistin% u*on any &e'i"a e(i'en"e+ S"he&e offe!s "o(e!s on y on 'eath an' the!e is no &atu!ity (a ue at the en' of the te!&+ BG P*%',u' C4 *&% D!%5 8!ou* ;Te!&< Insu!an"e S"he&e is at *!esent offe!e' un'e! One Mea! Rene#a) e 8!ou* te!& assu!an"e * an ;OMR8TA<+ E(e!y yea! on Annua Rene#a 'ate LIC "ha!%es the *!e&iu& 'e*en'in% u*on the "han%es in si1e an' a%e 'ist!i)ution of the a%e %!ou*+ CG D,ff%*%"t S04%'%$5 8!ou* ;te!&< Insu!an"e S"he&e has a nu&)e! of (a!ieties+ The S"he&e &ay *!o(i'e fo! a unifo!& "o(e! to a &e&)e!s of the %!ou* o! %!a'e' "o(e!s fo! 'iffe!ent

"ate%o!ies of &e&)e!s$ "o(e! fo! a a&ounts of outstan'in% housin% oans o! (ehi" e a'(an"es$ o! so&e othe! )enefits ;e+%+$ ife "o(e! to su** e&ent *ension o! PF )enefits in "ase of 'eath<+ The s"he&es &ay ha(e a''Cons ike Dou) e A""i'ent =enefit$ C!iti"a I ness =enefit$ Disa)i ity )enefit et"+ DG G%"%* ! F% tu*%$ of - *,ou$ G*ou( I"$u* "0% S04%'%$5 9+ PREMIUM5 The *!e&iu& un'e! su"h s"he&e &ay )e #ho y *ai' )y the e&* oye! o! the No'a A%en"y+ >o#e(e!$ the s"he&e &ay )e "ont!i)uto!y i+e+ the &e&)e!s &ay a so "ont!i)ute+ 42

2+ DOUBLE ACCIDENT BENEFIT5 Dou) e A""i'ent =enefit$ i+e+ *ay&ent of 'ou) e the su& assu!e' on 'eath 'ue to a""i'ent ;#ithout *e!&anent 'isa)i ity )enefit<$ &ay )e a o#e' un'e! 8!ou* Insu!an"e S"he&es fo! an e0t!a *!e&iu&+ .+ ELIGIBILITY5 Fo! 8!ou* Insu!an"e S"he&e in ieu of EDLIS the insu!a)i ity "on'ition is that shou ' )e a &e&)e! of the P!o(i'ent Fun' S"he&e of the e&* oye!+ Fo! othe! 8I S"he&es of e&* oye!Ce&* oyee %!ou*s the insu!a)i ity "on'ition is that the &e&)e! shou ' not )e a)sent on %!oun' of si"kness on the ent!y 'ate+ Fo! a nonCe&* oye!C e&* oyee 8!ou* S"he&es the )asi" insu!a)i ity "on'ition is that the &e&)e! shou ' )e in %oo' hea th on the 'ate of ent!y+ 3+ ADMINISTRATION OF THE SCHEME5 At the "o&&en"e&ent an' the!eafte! on ea"h Annua Rene#a Date$ the 8!ou* Po i"yho 'e! #i ha(e to sen' a the &e&)e!,s 'ata ;an' *a!ti"u a!s of the ne#

ent!ants f!o& ti&e to ti&e< to the P L 8S unit of LIC+ Detai e' OMR8TA *!e&iu& "a "u ation #i )e &a'e on ea"h Annua Rene#a Date+

4.

2. J " $4*%% B,' YoI " FJBYG

F% tu*%$
The o)Ie"ti(e of the s"he&e is to *!o(i'e ife insu!an"e *!ote"tion to the !u!a an' u!)an *oo! *e!sons )e o# *o(e!ty ine an' &a!%ina y a)o(e the *o(e!ty ine+ ELIGIBILITY5 A *e!son #ho is RA%e' )et#een 9? an' 4: yea!s+ R=e o# o! &a!%ina y a)o(e *o(e!ty ine RA &e&)e! of any of the a**!o(e' (o"ation2o""u*ation %!ou*s NODAL AGENCY5 A State 8o(e!n&ent De*a!t&ent #hi"h is "on"e!ne' #ith the #e fa!e of any su"h (o"ation2o""u*ation %!ou*$ a We fa!e Fun'2 So"iety$ Ki a%e Pan"hayat$N8O$Se fC >e * 8!ou*$et"+ MINIMUM MEMBERSHIP SIJE5 T#enty fi(e+ FORMS FOR JANASHREE BIMA YOJANA 9+ C ai& fo!& L 'is"ha!%e !e"ei*t un'e! H=M ;Anne0u!e A< 2+ A** i"ation fo! s"ho a!shi* un'e! Shiksha Sahayo% MoIana ;P!ofo!&a A< .+ List of stu'ents e i%i) e fo! s"ho a!shi* un'e! Shiksha Sahayo% MoIana ;P!ofo!&a =< 3+ Ce!tifi"ate of uti i1ation ; P!ofo!&a C <

B%"%f,t$
In the e(ents of RDeath ;othe! than )y a""i'ent< of the &e&)e!$ an a&ount of Rs+.6$6662C is *aya) e+ R'eath2tota *e!&anent 'isa)i ity$ 'ue to a""i'ent$ an a&ount of Rs+A4$6662Cis 43

*aya) e+ RPe!&anent *a!tia 'isa)i ity$ 'ue to a""i'ent$ an a&ount of Rs+.A$4662C is *aya) e+ PREMIUM5 RThe *!e&iu& un'e! the s"he&e is Rs+2662C*e! annu& *e! &e&)e!+ R465 of the *!e&iu& i+e+ Rs+9662C #i )e "ont!i)ute' )y the &e&)e! an'2o! No'a A%en"y2State 8o(e!n&ent+ R=a an"e 465 #i )e )o!ne )y the So"ia Se"u!ity Fun'+ APPRO3ED 3OCATION < OCCUPATIONAL GROUPS5 AG T4% &*ou( t4 t 0 " D% 0o-%*%# *% !,?% @o*?%*$ ," C ;i< Foo'stuffs ike khan'sa!i ;ii< Te0ti e ;iii< Banufa"tu!e of #oo' *!o'u"ts ;i(< Banufa"tu!e of *a*e! *!o'u"ts ;(< Banufa"tu!e of eathe! *!o'u"ts ;(i< P!intin% ;(ii< Ru))e! an' "oa *!o'u"ts ;(iii< Che&i"a *!o'u"ts ike "an' e &anufa"tu!e ;i0< Bine!a *!o'u"ts ike ea!then toys &anufa"tu!e ;0< Fi!e "!a"ke!,s #o!ke!s ;0i<Const!u"tion #o!ke!s ;0ii<Othe! !e ate' "otta%e in'ust!ies to )e i'entifie' )y No'a A%en"ies an' othe! %!ou*s as i'entifie' )y the No'a A%en"y an' a**!o(e' )y LIC+ BG T4% o00u( t,o" ! &*ou($ *% 5 =ee'i #o!ke!s$ =!i"k @i n Wo!ke!s;Ha an'ha!<$Ca!*ente!s$ Co)) e!s$ Fishe!&an$ >a&a s$ >an'i"!aft A!tisans$ >an' oo& Wea(e!s$ >an' oo& an' @ha'i Wea(e!s$

44

La'y Tai o!s$ Leathe! an' Tanne!y Wo!ke!s$ Pa*a' Wo!ke!s atta"he' to ,SEWA,$ Physi"a y >an'i"a**e' se fC E&* oye' Pe!sons$ P!i&a!y Bi k P!o'u"e!s$ Ri"ksha# Pu e!s2 Auto D!i(e!s$ Safai @a!&a"ha!is$ Sa t 8!o#e!s$ Ten'u Leaf Co e"to!s$ S"he&e fo! the U!)an Poo!$ Fo!est Wo!ke!s$ Se!i"u tu!e$ To''y Ta**e!s$ Po#e! oo& Wo!ke!s$ S"he&e fo! Wo&en in Re&ote Ru!a >i y A!eas+

47

PLANHS NA3

4A

P! " N '%FNu'D%*G Fun' SFIN No+

L u"04 D t% Fa"e Ka ue NAK as on 'ate Re*u!"hase Sa e Ka ue Ka ue

BIMA PLUS F1.>G =a an"e' Risk Se"u!e' =a an"e' =on' 8!o#th In"o&e =a an"e' =on' 8!o#th Se"u!e' =a an"e' =on' 8!o#th Se"u!e' =a an"e' =on' 8!o#th Se"u!e' =a an"e' =on' 8!o#th Se"u!e' =a an"e' =on' 8!o#th Se"u!e' ULIF662626269LIC=BAS=AL492 ULIF66.626269LIC=BASRS@492 ULIF669626269LIC=BASSEC492 ULIF66.636.64LICFUTS=AL492 ULIF669636.64LICFUTS=ND492 ULIF663636.64LICFUTS8RW492 ULIF662636.64LICFUTSINC492 ULIF66.9?9664LICHKNS=AL492 ULIF6699?9664LICHKNS=ND492 ULIF6639?9664LICHKNS8RW492 ULIF6629?9664LICHKNSSEC492 ULIF66.269267LICBNMS=AL492 ULIF669269267LICBNMS=ND492 ULIF663269267LICBNMS8RW492 ULIF662269267LICBNMSSEC492 ULIF66.646A67LICB@TS=AL492 ULIF669646A67LICB@TS=ND492 ULIF663646A67LICB@TS8RW492 ULIF662646A67LICB@TSSEC492 ULIF66.2.6?6ALICFTNS=AL492 ULIF6692.6?6ALICFTNS=ND492 ULIF6632.6?6ALICFTNS8RW492 ULIF6622.6?6ALICFTNSSEC492 ULIF66.2.6?6ALICPFTS=AL492 ULIF6692.6?6ALICPFTS=ND492 ULIF6632.6?6ALICPFTS8RW492

Laun"h DateD>28>282>>1 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 96+66 39+:76A 4:+:2.7 ..+A729 9A+AA.3 94+9:3. 23+3?2A 9A+6.3? 94+4A67 94+.A7? 22+??44 94+33:2 93+6..7 93+A7:3 99+:6:3 93+2973 94+.2:9 94+?3:4 94+9?6. 94+.7A3 92+.93. 9.+?:93 99+?944 93+373? 93+A944 93+379A 99+..47 9.+:A.4 92+2A:. .:+?72A 47+:2A3 .2+6A36 9A+AA.3 94+9:3. 23+3?2A 9A+6.3? 94+4A67 94+.A7? 22+??44 94+33:2 93+6..7 93+A7:3 99+:6:3 93+2973 94+.2:9 94+?3:4 94+9?6. 94+.7A3 92+.93. 9.+?:93 99+?944 93+373? 93+A944 93+379A 99+..47 9.+:A.4 92+2A:. 39+:76A 4:+:2.7 ..+A729 9A+AA.3 94+9:3. 23+3?2A 9A+6.3? 94+4A67 94+.A7? 22+??44 94+33:2 93+6..7 93+A7:3 99+:6:3 93+2973 94+.2:9 94+?3:4 94+9?6. 94+.7A3 92+.93. 9.+?:93 99+?944 93+373? 93+A944 93+379A 99+..47 9.+:A.4 92+2A:.

FUTURE PLUS F1:2G

Laun"h DateD>.8>+82>>/

JEE3AN PLUS F1:+G

Laun"h DateD1;81>82>>/

MONEY PLUS F1;>G

Laun"h DateD2>81282>>9

MARKET PLUS F1;1G

Laun"h DateD>/8>:82>>9

FORTUNE PLUS F1;:G

Laun"h DateD2+8>;82>>:

PROFIT PLUS F1;;G

Laun"h DateD2+8>;82>>:

ULIF6622.6?6ALICPFTSSEC492 4? MARKET PLUS - I F1=1G =a an"e' ULIF66.9A676?LICB@9S=AL492

Laun"h DateD1:8>982>>;

The net asset (a ue of 'iffe!ent s"he&es of ife insu!an"e Co!*o!ation of In'ia fo! the insu!e'Js is as fo o#sD NA3 FOR THE DATE 5 1.8>+82>12

4:

TAK BENEFITS

INCOME-TAK AND TAK BENEFITS FROM LIFE INSURANCE AL INCOME-TAK RATES FOR ASSESSMENT YEAR 2>11-2>12

FFINANCIAL YEAR 2>1>-2>11G

I"0o'% S! D$ I"#,-,#u ! < HUF Wo' " D%!o@ D%!o@ )% *$ In"o&e Rs+9$76$666 Rs+9$76$669 Rs+4$66$666 Rs+4$66$669 Rs+?$66$666 A)o(e Rs+?$66$669 u*to In"o&e Rs+9$:6$666 to Rs+9$:6$669 Rs+4$66$666 to Rs+4$66$669 Rs+?$66$666 A)o(e Rs+?$66$669 u*to In"o&e Rs+2$36$666 to Rs+2$36$669 Rs+4$66$666 to Rs+4$66$669 Rs+?$66$666 A)o(e Rs+?$66$669 &% of 9/ 9/ )% *$ &% of I"#,-,#u ! of 9/ )% *$ Do-% &%

T 7 R t%$

u*to NIL

to 965

to 265

.65

E#u0 t,o" C%$$ 5 An a''itiona su!"ha!%e "a e' as TE'u"ation CessJ is e(ie' at the !ate of 25 on the a&ount of In"o&e ta0 an' su!"ha!%e ;if any< in a "ases sha )e e(ie'+ S%0o"# *) "# H,&4%* 5 An a''itiona su!"ha!%e$ "a e' the FSe"on'a!y an'

>i%he! E'u"ation Cess on in"o&eC at the !ate of 95 of in"o&eCta0 an' su!"ha!%e ;not in" u'in% the E'u"ation Cess on In"o&eCta0< in a "ases sha )e e(ie'+

76

BL SOME IMPORTANT INCOME TAK BENEFITS A3AILABLE UNDER 3ARIOUS PLANS OF LIFE INSURANCE ARE HIGHLIGHTED BELOW5 1G D%#u0t,o" !!o@ D!% f*o' I"0o'% fo* ( )'%"t of L,f% I"$u* "0% P*%',u' FS%0. ;>CG. ;a< Life Insu!an"e *!e&ia *ai' in o!'e! to effe"t o! to kee* in fo!"e an insu!an"e on the ife of the assessee o! on the ife of the s*ouse o! any "hi ' of assessee L in the "ase of >UF$ *!e&iu& *ai' on the ife of any &e&)e! the!eof$ 'e'u"tion a o#e' u*to 265 of "a*ita su& assu!e' 'u!in% any finan"ia yea!+ ;)< Cont!i)ution to 'efe!!e' annuity P ans in o!'e! to effe"t o! to kee* in fo!"e a "ont!a"t fo! 'efe!!e' annuity$ on his o#n ife o! the ife of his s*ouse o! any "hi ' of su"h in'i(i'ua $ *!o(i'e' su"h "ont!a"t 'oes not "ontain a *!o(ision to e0e!"ise an o*tion )y the insu!e' to !e"ei(e a "ash *ay&ent in ieu of the *ay&ent of annuity is e i%i) e fo! 'e'u"tion+ ;"< Cont!i)ution to Pension2Annuity P ans C Ne# Hee(an Dha!aCI L Hee(an Akshaya C KI 2G J%%- " N,#4, P! " < N%@ J%%- " Su* ?$4 - I P! " FU8$. ;>CCCG A 'e'u"tion to an in'i(i'ua fo! any a&ount *ai' o! 'e*osite' )y hi& f!o& his ta0a) e in"o&e in the a)o(e annuity * ans fo! !e"ei(in% *ension ;f!o& the fun' set u* )y the Co!*o!ation un'e! the Pension S"he&e< is a o#e'+ NOTE5 The *!e&iu& "an )e *ai' u*to Rs+9$66$6662C to a(ai 'e'u"tion u2s+?6C$ ?6CCC L ?6CCD ;?6CCDC De'u"tion in !es*e"t of "ont!i)ution to *ension s"he&e of Cent!a 8o(e!n&ent+<+ >o#e(e!$ the!e is no se"to!a "a* i+e+ the i&it of Rs+9$66$6662C "an )e e0hauste' )y *ayin% *!e&iu& un'e! any of the sai' se"tions+ +G I"-%$t'%"t u"#%* !o"&-t%*' ,"f* $t*u0tu*% Do"#$ "ot,f,%# D) t4% C%"t* ! Go-%*"'%"t. FS%0. 79 ;>CCFG

A 'e'u"tion u* to Rs+ 266662C is a(ai a) e to in'i(i'ua s an' >UF fo! a&ount *ai' o! 'e*osite' as su)s"!i*tion to on%Cte!& inf!ast!u"tu!e )on's notifie' )y the Cent!a 8o(e!n&ent+ This is in a''ition to Rs+ N akh 'e'u"tion a(ai a) e un'e! se"tion ?6C+ +G D%#u0t,o" u"#%* $%0t,o" ;>D 9+ De'u"tion a o#a) e u*to Rs+94$6662C if an a&ount is *ai' to kee* in fo!"e an insu!an"e on hea th of assessee o! his fa&i y ;i+e+ S*ouse L "hi '!en< 2+ A''itiona 'e'u"tion u*to Rs+94$6662C if an a&ount is *ai' to kee* in fo!"e an insu!an"e on hea th of *a!ents .+ In "ase of >UF$ 'e'u"tion a o#a) e u*to Rs+94$6662C if an a&ount is *ai' to kee* in fo!"e an insu!an"e on hea th of any &e&)e! of that >UF Not%5 If the su& s*e"ifie' in ;a< o! ;)< o! ;"< is *ai' to effe"t o! kee* in fo!"e an insu!an"e on the hea th of any *e!son s*e"ifie' the!ein #ho is a senio! "iti1en$ then the 'e'u"tion a(ai a) e #i )e u*to Rs+26$6662C+

*!o(i'e' that su"h insu!an"e is in a""o!'an"e #ith the s"he&e f!a&e' )y a< the 8ene!a Insu!an"e Co!*o!ation of In'ia as a**!o(e' )y the Cent!a 8o(e!n&ent in this )eha f o!-

)< Any othe! insu!e! an' a**!o(e' )y the Insu!an"e Re%u ato!y an' De(e o*&ent Autho!ity+ .G J%%- " A #4 * P! " FS%0.;>DDG 5 De'u"tion f!o& tota in"o&e u*to Rs+466662C a o#a) e on a&ount 'e*osite' #ith LIC un'e! Hee(an Aa'ha! P an fo! &aintenan"e of an han'i"a**e' 'e*en'ent ;Rs+9$66$6662C #he!e han'i"a**e' 'e*en'ent is suffe!in% f!o& se(e!e 'isa)i ity< /G E7%'(t,o" ," *%$(%0t of 0o''ut t,o" of (%"$,o" u"#%* J%%- " Su* ?$4 < J%%- " N,#4, P! "$5 Un'e! Se"tion 96;96A< ;iii< of the In"o&eCta0 A"t$ any *ay&ent !e"ei(e' )y #ay of 72

"o&&utations of *ension out of the Hee(an Su!aksha L Hee(an Ni'hi Annuity * ans is e0e&*t f!o& ta0 un'e! " ause ;2.AA=<+ 9G I"0o'% t 7 %7%'(t,o" o" M tu*,t)8D% t4 C! ,'$ (*o0%%#$ u"#%* S%0t,o" 1>F1>DG Un'e! the *!o(isions of se"tion 96;96D< of the In"o&eCta0 A"t$ 9:79$

Batu!ity2Death " ai&s *!o"ee's of ife insu!an"e *o i"y$ in" u'in% the su& a o"ate' )y #ay of )onus on su"h *o i"y ;othe! than a&ount to )e !efun'e' un'e! Hee(an Aa'ha! Insu!an"e P an in "ase of han'i"a**e' 'e*en'ent *!e'e"eases the in'i(i'ua o! a&ount !e"ei(e' un'e! a @ey&an Insu!an"e P an< is e0e&*te' f!o& in"o&eCta0+ >o#e(e! any su& ;not in" u'in% the *!e&iu& *ai' )y the assessee< !e"ei(e' un'e! an insu!an"e *o i"y issue' on o! afte! the 9st 'ay of A*!i $ 266. in !es*e"t of #hi"h the *!e&iu& *aya) e fo! any of the yea!s 'u!in% the te!& of the *o i"y e0"ee's 265 of the a"tua "a*ita su& assu!e' #i no on%e! )e e0e&*te' un'e! this se"tion+

7.

CHAPTER-/

FINDIN8S

73

FINDINGS
F,"#,"&$5 Afte! "o&* etin% the stu'y fo o#in% *oints "an )e '!a#nD
9+ It has one of the sin% e 'ist!i)ution net#o!ks a&on%st %o(e!n&ent insu!an"e * aye!s+ 2+ LIC has &any nu&)e!s of insu!an"e *o i"ies an' * ans ha(in% f e0i) e to &eet the "usto&e!sJ !e/ui!e&ent an' e0*e"tation+ .+ LIC ente!e' the &a!ket #ith a%%!essi(e &a!ketin% an' su**o!te' )y afte! sa e se!(i"es #ith the he * of te"hno o%y+ 3+ A LIC P ans "o&e #ith So(e!ei%n 8ua!antee i+e+$ 8o(e!n&ent of In'ia 8ua!antee !e%a!'in% !e*ay&ent+ Infa"t$ as of no#$ on y LIC * ans enIoy this 8o(e!n&ent 8ua!antee+

74

CHAPTER-9

CONCLSION

77

CONCLUSION
Afte! "o&* etin% the *!oIe"t it is "on" u'e' that LIC 'e(e o* its (a!ious * ans an' *o i"ies$ f e0i) e in natu!e$ a""o!'in% to the !e/ui!e&ents of its ta!%ete' &a!ket o! "usto&e!s an' is thus )enefi"ia to its "usto&e!s in (a!ious #ays+ The &ost i&*o!tant )enefit it *!o(i'es to its "usto&e!s is that it is a %o(e!n&ent o#ne' "o&*any+ This ea' to in"!ease in the satisfa"tion e(e of its "usto&e! that is #hy LIC has &o!e than 266 &i ion *o i"yho 'e!s #hi"h is e/ua to the fou!th a!%est "ount!y in #o! '+ The!efo!e it is not on y )enefi"ia )ut )ette! than othe! insu!an"e "o&*anies not on y !e%a!'in% its *!o'u"t )ut a so its se!(i"es+

7A

BIBLIOGRAPHY
Info!&ation an' 'ata use' in the *!oIe"t has )een "o e"te' f!o& the fo o#in% sou!"esDC

1. @@@.!,0,"#, .0o' 2. @@@.!,0'utu !.0o' +. @@@.!,04ou$,"&.0o' .. @@@.@,?,(%#, .o*& /. @@@.*%(o*tDu)%*.0o' 9. @@@.&oo&!%.0o'

7?