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your A to Z competitive exam guide
adverse effects of the World War I and World War II on the economy of India. Europeans in India were its primary target market. and also the country's largest investor. India’s first 150 years were marked mostly by turbulent economic conditions. It is fully owned by the Government of India. It was founded in 1956 with the merger of more than 200 insurance companies and provident societies. The aggregate effect of these events led to a high rate of bankruptcies and liquidation of life insurance companies in India. The Indian Insurance Companies Act of 1928 authorized the government to obtain statistical information from companies operating in both life and nonlife insurance areas. The Bombay Mutual Life Assurance Society. providing the first regulatory mechanisms in the Life Insurance industry. Headquartered in Mumbai. at least 2048 branches located in different cities and towns of India along with satellite Offices attached to about some 50 Branches.2 million agents for soliciting life insurance business from the public. was established in Calcutta in 1818 by Bipin Bernard Dasgupta and others. The subsequent Insurance Act of 1938 brought stricter state control over an industry that had seen several financially unsound ventures fail. Other insurance companies established in the preindependence era included Bharat Insurance Company (1896) United India (1906) National Indian (1906) National Insurance (1906) Co-operative Assurance (1906) Hindustan Co-operatives (1907) Indian Mercantile General Assurance Swadeshi Life (later Bombay Life) mb iti on Z. It has assets estimated of 9. History ww The Life Insurance Act and the Provident Fund Act were passed in 1912. First War of Independence. It also funds close to 24. w. the Life Insurance Corporation of India currently has 8 zonal Offices and 101 divisional offices located in different parts of India. It witnessed. and in between them the period of world wide economic crises triggered by the Great depression.68 billion). formed in 1870.31 trillion (US$206. co m . This had adversely affected the faith of the general public in the utility of obtaining life cover. financial and commercial capital of India. A bill was also introduced in the Legislative Assembly in 1944 to nationalize the insurance industry.6% of the Indian Government's expenses. The first half of the 20th century also saw a heightened struggle for India's independence. was the first native insurance provider. Gr 8A The Oriental Life Insurance Company. and has a network of around 1. the first corporate entity in India offering life insurance coverage. and it charged Indians heftier premiums.Overview The Life Insurance Corporation of India (LIC) is the largest state-owned life insurance company in India.
1972 : The General Insurance Business (Nationalisation) Act. the first company to transact all classes of general insurance business. was sent to prison for two years. Eventually. 1968 : The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. Ram Kishan Dalmia. the Oriental Insurance Company Ltd. frames a code of conduct for ensuring fair conduct and sound business practices. viz. on the other hand. one of India's wealthiest businessmen. LIC formed by an Act of Parliament. 107 insurers amalgamated and grouped into four companies viz. Some of the important milestones in the general insurance business in India: 1907 : The Indian Mercantile Insurance Ltd. the Parliament of India passed the Life Insurance of India Act on 1956-06-19. 1956. GIC incorporated as a company. In the ensuing investigations. set up. the first life insurance company on Indian soil started functioning. ww In 1955. 1956 : 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. parliamentarian Amol Barate raised the matter of insurance fraud by owners of private insurance companies. LIC Act. the National Insurance Company Ltd. by consolidating the life insurance business of 245 private life insurers and other entities offering life w. 5 crore from the Government of India. with a capital contribution of Rs.Some of the important milestones in the life insurance business in India: 1818 : Oriental Life Insurance Company. 1957 : General Insurance Council. co m . and the United India Insurance Company Ltd. 1938 : Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.. owner of the Times of India newspaper. the first general insurance company established in the year 1850 in Calcutta by the British. Nationalization Gr 8A mb iti The General insurance business in India. 1870 : Bombay Mutual Life Assurance Society. the first Indian life insurance company started its business. can trace its roots to the Triton Insurance Company Ltd. a wing of the Insurance Association of India. 1912 : The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928 : The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.. and the Life Insurance Corporation of India was created on 1956-09-01. 1972 nationalised the general insurance business in India with effect from 1 st January 1973. the New India Assurance Company Ltd.. on Z.
the funds to be deployed to the best advantage of the investors as well as the community as a whole. Promote amongst all agents and employees of the Corporation a sense of participation. The slogan of LIC is "Zindagi ke saath bhi. Nationalization of the life insurance business in India was a result of the Industrial Policy Resolution of 1956. co m insurance services. keeping in view national priorities and obligations of attractive return. 5 for a US $ . . whose money it holds in trust. Zindagi ke baad bhi"in hindi. created huge surpluses. In english it means "with life also. pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective. in the investment of funds. LIC is the 8th most trusted brand of India OBJECTIVES ww Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost. 5.SPREAD IN THE COUNTRY Over its existence of around 50 years. The Corporation. Gr 8A mb iti on Z.6 million policies and a corpus of INR 459 million (US$ 92 million as per the 1959 exchange rate of roughly Rs. According to The Brand Trust Report 2011. Act as trustees of the insured public in their individual and collective capacities. has grown to 25000 servicing around 180 million policies and a corpus of over 8 trillion (US$177. 1 Service Brand of the Country. The recent Economic Times Brand Equity Survey rated LIC as the No. w. the primary obligation to its policyholders. including the life insurance. which started its business with around 300 offices. without losing sight of the interest of the community as a whole. Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. Life Insurance Corporation of India. which commanded a monopoly of soliciting and selling life insurance in India.after life also. and contributed around 7 % of India's GDP in 2006. which had created a policy framework for extending state control over at least seventeen sectors of the economy. Maximize mobilization of people's savings by making insurance-linked savings adequately attractive.6 billion). Bear in mind. Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy. Meet the various life insurance needs of the community that would arise in the changing social and economic environment.
Scheme can be surrendered at any time. This plan is different from the traditional Cash Accumulation Plan as the returns under the Plan are linked to the performance of the chosen fund. 2. LIC brings you LIC’s GRATUITY PLUS PLAN. Gr 8A 1. which in turn reduces the employer’s tension. Five lacs in the Policyholder’s Unit Account. Group Insurance is an insurance which covers a group of people (like employees of a common employer or professionals in a common group). The benefit available on surrender of the policy will be the value of total number of units held in the Policy Holder’s Unit Account at the time of surrender. 2. In case the Policyholder’s Unit Account w. 5. Cover can be equal to the gratuity payable for anticipated service. 3. co m . Assistance for execution of legal documents and installation of scheme. 3. 6. It provides for life insurance cover at a very minimal cost. There is no surrender penalty imposed. 1. the company can also choose for each member a uniform level of cover equal to a minimum of one months salary or more . mb iti on Z. The policy can be surrendered at any time. subject to a minimum balance of Rs. a unit linked plan for management of Gratuity Funds. Facility of Switching between various funds. Flexibility in structuring the Gratuity Costs based on performance of Fund. GRATUITY PLUS PLAN is suitable for companies who desire to entrust Gratuity Fund management to an insurer and wish to have the flexibility of choice of investments. ADVANTAGES BENEFITS ww At all times the Policyholder’s unit account should be sufficient to cover the relevant charges and benefits payable at such point of time. Hassle Free Administration of Scheme 8.BRIEF OVERVIEW OF SCHEMES OF LIC LIC – GROUP PLAN | GROUP GRATUITY SCHEME | LIC | OVERVIEW | ADVANTAGES | BENEFITS – TAX BENEFIT | FEATURES – SPECIAL FEATURES Key to a successful business is keeping your employees motivated. Gratuity Benefits to Members whenever payable as per Rules of the Scheme shall be paid to the Policy Holder by debiting the requisite no of units to the Policy Holder’s Unit Account at NAV applicable at that time. Choice of 4 funds to meet various risk appetites. life insurance cover as opted for by Policyholder will also be paid by the Corporation. Happy and secured employees work better. 4. One switch every year is free of cost. Alternatively. There is no bid offer spread under this scheme. 7. In case of death of member.
2. TAX BENEFITS: Jeevan Anurag ww Death Benefit Payment of an amount equal to Sum Assured under the basic plan immediately on the death of the life assured.T. Act. 1. In terms of a Notification issued by the Central Board of Direct Taxes . 20% of the Sum assured will be payable at the end of the 17th. if term of the policy is 20 years. in the case of the Contributions scheme qualifies for exemption under Section 80C of the Income-Tax Act. The plan can be taken by a parent on his or her own life. m . 3. 1962. the policy shall compulsorily be terminated and the balance amount in the policy holder’s Unit Account will be refunded to the policy holder.falls below this limit. at the end of the 20th year.18th. In addition. The income tax concession will be available only if the scheme is approved by the CIT. 1961 and Part XIII of the Income Tax Rules. 40% of the Basic Sum Assured along with reversionary bonuses declared from time to time on full Sum Assured for the full term and the Terminal bonus. The annual contribution is treated as a deductible business expense in term of Section 36(1) (IV) of the I. if any. At maturity. mb iti on Z.80% of the contribution (s) towards the past service liability are treated as deductible business expenses spread over in the subsequent years of payment. Assured Benefit Payment of 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity. w. For example. Gr 8A Benefits LIC’s Jeevan Anurag is a with profits plan specifically designed to take care of the educational needs of children. 19th year and 40% of the Sum Assured along with the reversionary bonuses and the terminal bonus. this plan also provides for an immediate payment of Basic Sum Assured amount on death of the Life Assured during the term of the policy. The employee’s contribution. if any shall be payable. Benefits under the plan are payable at prespecified durations irrespective of whether the Life Assured survives to the end of the policy term or dies during the term of the policy. co The provisions relating to the approved Superannuation Scheme are set out in Part ‘B’ of the Fourth Scheme of the Income-Tax Act.
Even after the Premium Paying Term (PPT) is over. 5. Mr. 149 provides financial protection against death throughout the lifetime of the life assured with the provision of payment of a lump sum at the end of the selected term in case of his survival. ww w. LIC will not pay second time bonus. takes Jeevan Anand policy for 25 years for Sum Assured Rs. 1 lakh equal to sum assured amount.DETAILS OF WHOLE LIFE SCHEME AND ENDOWMENT SCHEME Summary: Jeevan Anand is the combination of Endowment Assurance and Whole Life plan.) co m . 1 lakh sum assured Plus Rs. risk cover continues till the death of the policy holder. The lump sum can be reinvested to provide an annuity during the remainder of policy holders life or in any other way considered suitable at that time. that means Zindagi Ke Saath Bhi Zindagi Ke Bad Bhi… Jeevan Anand plan no.(Rs. Pankaj. Mr. dies ( After premium paying term is over) at the age of 60 years. 250/-. Key Features: 1. Tax Savings Modes of Premium Payment: You can pay premium yearly. Accident Benefit is available during the Premium paying term and thereafter upto age 70. monthly or through salary deductions as opted by you throughout the selected term of the policy or till earlier death. exclusive of any attached bonus. 2.12.per thousand per year.45/. Jeevan Anand Plan Premiums are limited.1 Lakh (sum Assured) + Accrued bonus till Mr. This policy not only makes provisions for the family of the life assured in the event of early death but also assures a lump sum at a desired age. his nominee will get Rs. Limited premium payments. 4. For Example: Mr. The reduced sum assured will become payable on the event as stipulated in the policy. In case. Pankaj’s death. quarterly. Now on Maturity Pankaj will receive Rs. In case. The risk cover will continue even after the maturity. half-yearly. 3. 1 lakh.1. a free paid-up policy for a reduced sum assured will be automatically secured provided the reduced sum assured.is the estimated bonus at Rs. Premium Stoppage: If payment of premiums ceases after at least 3 years premiums have been paid.500/. Since Mr. Pankaj dies during the Premium Paying Term. Pankaj. Jeevan Anand is the combination of Whole Life and Endowment Assurance plan. Pankaj has already received the bonus. his nominee will get additional Rs.12.500/. You only pay till the selected term of years or until death if it occurs during the term period. Double accidental cover upto age 70. Gr 8A mb iti on Z. age 25 years. 6. 2. is not less than Rs.
Eligibility Conditions and Restrictions: a) b) c) d) e) f) g) h) i) j) Minimum Entry Age: 18 Years completed Maximum Entry Age: 65 Years Max. In case of permanent disability of the life assured due to accident this additional Sum assured is payable in instalments. iti Death Benefit : Sum Assured along with vested bonuses are payable on death during the premium paying term. Gr 8A mb Accident Benefit: Double Accident Benefit is available during the premium paying term and thereafter up to age 70. No Bonus is paid on death after the premium paying term. Premium term: 5 yrs Max Premium term: 57 yrs Minimum Sum Assured: Rs. 1.Bonuses : Jeevan Anand is a with-profit insurance plan and participates in the profits of the Corporation’s life insurance business. However. w.000/Maximum Sum Assured: No Limit Risk cover: Sum Assured + Bonus Loan on policy: Available Housing loan : Available ww Surrender Value: Buying a life insurance contract is a long-term commitment. if any. Simple Reversionary Bonus accrues during the premium paying term and is payable at the end of the premium paying term or on earlier death along with final additional bonus. if it occurs earlier. Final (Additional) Bonus may also be payable provided the policy has run for certain minimum period. You will get the profit in the form of Bonuses. on Z.(Endowment term) co m . Bonuses will be added during the selected term or till death. Maturity Benefit: Sum Assured along with all vested bonuses payable at the end of the term to the policy holder. Maximum Accident Cover available under this plan will be Rs 5 lakh (this limit excludes accident benefit taken under other plans). Once the bonus is declared. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. An amount equal to the Sum Assured is payable if death occurs after the premium paying term. surrender values are available on the plan on earlier termination of the contract.00. they form part of the guaranteed benefits of the plan. Age: 75 years Min. PPT Mat.
LIC has paid advance Tax Rs. 11. Has Highest insurance Professionals ( Club Member agents ) 7. Any extra premium(s) paid and premium(s) towards Accident Benefit are also excluded. Gr 8A mb iti Who should buy Jeevan Anand policy? Since Jeevan Anand is an endowment assurance plus whole life policy. Only 4 countries in the world have more population that LIC`s policy holders. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. & Service Tax Rs. LIC is No. Adjudged "The most trusted service Brand" in India. 2nd Biggest Real Estate Owner next to Indian Railways. LIC is one of the Highest income tax playing Organization.Policies in 20072008.LIC adjudged the "Most Preferred Life insurance Company of the year" at the "CNBC AWAAZ" consumer award 2007 for 3rd time in succession.2007&2008 (Voted by Consumers) 13.1 insurance company in the world in terms of agency (about 1.75 Cr. in case of early termination of the policy.1292. 4.2627. For Financial Year 200708.Awarded Reader Digest's "Trusted Brand"2006. by "Economic Times and AC NEILSEN ORG MARG" for the year 2007 for the 5th consecutive year. the surrender value payable may be less than the total premium paid. 12. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender. Largest insurance Company in the world in Customer Base (23 crore customers) 2. .LIC adjudged as "Best life insurance Company of the year" at the "2nd"NDTV Profit Business Leadership Awards-2007.1 insurer in the world in Volume & Sold around 3. co m Guaranteed Surrender Value: The policy may be surrendered after it has been in force for 3 years or more. the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. 14 Cr.REASONS WHY LIC IS A MARKET LEADER IN LIFE INSURANCE SECTOR Positions: 1. LIC’s policy on surrenders: In practice. "Golden Peacock" award for Excellence in "corporate Governance" 10. 15 Cr. "Outlook Money NDTV Profit Award 2007" ww w. 9. 5. No. Award – Recognition : 8. In some circumstances. 6. this plan is apt for people of of all ages and social groups who wish to protect their families from a financial setback that may occur owing to their demise. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death or at maturity.1 Million agents) 3. The amount assured if not paid by reason of his death earlier will payable at the end of the endowment term where it can be invested in an annuity provision for the rest of the policyholder’s life or in any other way he may think most suitable at that time on Z.
insurance Sector. through SMS. 23. Premium Payment Facility extended through networked 2048 branches. Most Sporting Corporate Championship Award Winner-2008 .One of the Lowest outstanding Claim Ratio in the world ( Maturity+S B Claim0.First to create waves in micro insurance sector by insuring people below the poverty line. 35. LIC settled 139 lakhs claims during the year 2007-2008.Biggest Portfolio of Group insurance schemes available. mb Advanced Technology-For better Customer Service 22. In year 2007-2008. 29.LIC Settles 2. Bahrain & Saudi Arabia.Info centre set up in 12 cities for customers to interact easily. 16. National insurance Academy. Facility is available 24 7.Enabling Policy servicing & payments through all branchs in the country. 27. ECS. "Web 18-Genius of the web Award" Conferred for the best website in insurance Category 15. 31.LIC is second largest PC user in the country. iti on Z.LIC is known as "Pension Provider" of the country. 17. online portals.ww Social Strength 30. Gr 8A "Suvidha info Serve KIOSKS" all over India. 8.1st Pension company in India is floated by LIC as "LIC Pension Fund Ltd" on 21st Nov 2007.54 lac policies sold through "Jeevan Madhur"Plan. Double crown for LIC in corporate Olympics 2008. 20. LIC Mutual Fund.07%) co m 14. USA&Canada. Facility can be availed on following phone Nos. w.LIC . 25. "Loyalty Awards 2008".Use of High Tech-WAN.EDMS to make LIC a paperless office. through selected agents.No.Widest range of plans (about 48) for every need of the customer of 0 to 79 years of age.LAN.IVRS & EDMS 24.1251 for details.Computerized and networked 2048 branch offices and 159 satellite offices throughout the country. "SKOCH Challengers Award 2008" for "Jeevan Madhur". 1251 OR 020-25514248. 19.LIC has foreign operations in Mauritius.Policy Holder's Portal allow on line access to policy status and other details. New offices will be hortly oprned in Australia. Now LIC Premium can also be paid through. Nepal. 33. Dial.Settlement of Claims 18. 28. Stock Holding Corporation of India. Honouring of the Commitment . Fiji and London and has joint venture operating in Sri lanka. 26.21 claims per second. ATM's through internet. collecting bank (Axis Bank). insurance institute of India etc.an institution builder promoting many financial and insurance institutes like NSE. 36.45 interactive Voice Response System (IVRS) centers all over the country to provide information on policy servicing. NCDEX.1 insurance Company in the world in terms of claims paid. 34. AP online. 32.Prompt settlement of claims (97% maturity claim settled on or before due date) 21.
56. For example. 39. Bima School and Bima Banks.O.630 crores.Total Assets of the corporation as on 31.32.100 crore invested every day.44 million maturity claims. the corporation settled 577. Broker ship & Chief Life insurarance Advisor (CLIA). relief of poverty etc.To its resounding credit. 47.10 billion) in settlement.635 crores during 2007-08 & total investment in this sector is Rs.10. a close-ended. co m . 50.000 Crs. 42. 52. LIC sold more than 35.953. 5606.28 Crs.321 crores. 38. viz Pune Division (i) and Pune Division (ii).LIC has covered lick Risk of 1.84 million policies collecting Rs.26%. 46.ww Current figures show the outstanding claims ratio under the death category at no more than 2.07 were Rs. Gr 8A Financial Strengths 49. Pune D.Total investment in Social Sector Rs.105.76. the Corporation was able to settle 97% of all maturity claims on or before the due date signing out Rs."Jeevan Saral" one of the product of LIC got "Best innovation product " award from I. the Corporation’s Jeevan Aastha scheme. LIC has invested Rs.A.9 million policies generating a first year premium income of Rs.559.000 death claims and 1.Largest institutional investor in Share Market. New East . KEY ACHIEVEMENTS mb iti People's Money for People's Welfare 44. singlepremium plan sold about 1.Central Zonal Office opened at patina to caterto the needs of states of Bihar.In socially oriented sector like water. 29. On an average Rs. Jharkhand and Orissa.90 crore (U S$ 1. 6.691 crores 45. It is a remarkable achievement that not only has LIC continued w.000 Crs.Different incentive schemes for villages. on Z.40. 51.R.LIC invested more than 11.85 crore (US$ 6. 37. drainage & housing etc.92 crore (US$ 11 billion) despite the global slowdown (Source: IRDA). 5 new Divisional offices were also opened in 2007-08.74.was splited in 2 divisions. 40. from the Sale of Equity. 43. During this period. health.13 crore citizens through "AAM ADMI BIMA YOJANA" & " JANASHREE BIMA YOJANA".20 billion) in death claims. in infrastructure sector is Rs. 52.Expending Distribution Channel through Bancassurances. 48.76.D. Schools and Banks under Bima Gram. Largest Financial institutional investor both Equity market & Term House.514.Very Unique Salary saving Portfolio. During the 2008/09 financial year. LIC has a proud record of innovative products that find instant acceptance and success.20 billion) in premiums in 45 days of launch in the year 2009. the corporation paid Rs.20% and in the maturity segment at an exemplary low of 0.Total investment in Nation Building Activities is 5.89. Out of Total income of Rs. 41.10.3. Additionally. During theyear 2007 LIC earned the profit Rs.5.Highest Number of Corporate Clients in Group insurance Scheme. 1.LIC's investment income in 2007-08 was Rs. "Golden Jubilee Foundations" established for undertaking charitable activities like education.655 crores.664 crore (US$ 2.78 Crs. Corporate Agencies.000 Crs.
Gr 8A mb Don’t forget to LIKE us there for Daily Updates iti on Z. In fact. the CNBC Awaaz Consumer Award in 2009 and the Customer and Brand Loyalty Award in 2009. its brand leadership has been on evidence. It was bestowed the Readers’ Digest Trusted Brand Platinum Award. Even in the field of technology. LIC’s innovations and practices were recognized when it won the NASSCOM Award for the Best IT User We are at Facebook ww www. LIC was felicitated with the NDTV-Profit Business Leadership award as also the Asia Brand Congress. for instance amongst several awards.com/Gr8AmbitionZ w. Brand Equity rated LIC as the Most Trusted Service Brand. In 2008. co m .to maintain the trust of consumers during the economic downturn but has also been felicitated with several awards. LIC emerged as the Top Brand in the Insurance Category in the survey conducted by ACNielsen for Brand Equity. In the recent past. in both 2008 and 2009.Brand Leadership Award.facebook. five years in a row. too. In the same year.
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