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formed in 1870. was the first native insurance provider. and has a network of around 1. co m . providing the first regulatory mechanisms in the Life Insurance industry. the first corporate entity in India offering life insurance coverage. w.6% of the Indian Government's expenses. This had adversely affected the faith of the general public in the utility of obtaining life cover. the Life Insurance Corporation of India currently has 8 zonal Offices and 101 divisional offices located in different parts of India. India’s first 150 years were marked mostly by turbulent economic conditions. adverse effects of the World War I and World War II on the economy of India. The subsequent Insurance Act of 1938 brought stricter state control over an industry that had seen several financially unsound ventures fail. Gr 8A The Oriental Life Insurance Company. Headquartered in Mumbai. History ww The Life Insurance Act and the Provident Fund Act were passed in 1912. First War of Independence. 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. and also the country's largest investor. and in between them the period of world wide economic crises triggered by the Great depression. It is fully owned by the Government of India. Europeans in India were its primary target market.Overview The Life Insurance Corporation of India (LIC) is the largest state-owned life insurance company in India. and it charged Indians heftier premiums.68 billion). financial and commercial capital of India. A bill was also introduced in the Legislative Assembly in 1944 to nationalize the insurance industry. was established in Calcutta in 1818 by Bipin Bernard Dasgupta and others.31 trillion (US$206. The Indian Insurance Companies Act of 1928 authorized the government to obtain statistical information from companies operating in both life and nonlife insurance areas. It was founded in 1956 with the merger of more than 200 insurance companies and provident societies. It has assets estimated of 9. The aggregate effect of these events led to a high rate of bankruptcies and liquidation of life insurance companies in India.2 million agents for soliciting life insurance business from the public. It witnessed. at least 2048 branches located in different cities and towns of India along with satellite Offices attached to about some 50 Branches. It also funds close to 24. The Bombay Mutual Life Assurance Society. The first half of the 20th century also saw a heightened struggle for India's independence.

owner of the Times of India newspaper. Eventually. by consolidating the life insurance business of 245 private life insurers and other entities offering life w.. can trace its roots to the Triton Insurance Company Ltd. parliamentarian Amol Barate raised the matter of insurance fraud by owners of private insurance companies. viz. the first company to transact all classes of general insurance business.. LIC Act. In the ensuing investigations. 1938 : Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. Some of the important milestones in the general insurance business in India: 1907 : The Indian Mercantile Insurance Ltd. with a capital contribution of Rs. the Oriental Insurance Company Ltd. 5 crore from the Government of India. ww In 1955. 1957 : General Insurance Council. 1928 : The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. one of India's wealthiest businessmen. the New India Assurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company. Nationalization Gr 8A mb iti The General insurance business in India. LIC formed by an Act of Parliament. 1972 : The General Insurance Business (Nationalisation) Act. a wing of the Insurance Association of India. co m . frames a code of conduct for ensuring fair conduct and sound business practices. 1968 : The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. was sent to prison for two years.. 1912 : The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. on the other hand. set up. and the Life Insurance Corporation of India was created on 1956-09-01. 1956. the first general insurance company established in the year 1850 in Calcutta by the British. Ram Kishan Dalmia. 107 insurers amalgamated and grouped into four companies viz. 1956 : 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. the first Indian life insurance company started its business.Some of the important milestones in the life insurance business in India: 1818 : Oriental Life Insurance Company. the National Insurance Company Ltd. the Parliament of India passed the Life Insurance of India Act on 1956-06-19. the first life insurance company on Indian soil started functioning. 1870 : Bombay Mutual Life Assurance Society. on Z. 1972 nationalised the general insurance business in India with effect from 1 st January 1973.

and contributed around 7 % of India's GDP in 2006. Gr 8A mb iti on Z.SPREAD IN THE COUNTRY Over its existence of around 50 years. keeping in view national priorities and obligations of attractive return. has grown to 25000 servicing around 180 million policies and a corpus of over 8 trillion (US$177. The Corporation. 5. pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective. which started its business with around 300 offices. The slogan of LIC is "Zindagi ke saath bhi. w. without losing sight of the interest of the community as a whole. . Zindagi ke baad bhi"in hindi. co m insurance services. the funds to be deployed to the best advantage of the investors as well as the community as a whole.  Promote amongst all agents and employees of the Corporation a sense of participation.  Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. including the life insurance. in the investment of funds.after life also.6 million policies and a corpus of INR 459 million (US$ 92 million as per the 1959 exchange rate of roughly Rs. 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.  Maximize mobilization of people's savings by making insurance-linked savings adequately attractive.  Bear in mind.6 billion). The recent Economic Times Brand Equity Survey rated LIC as the No. Nationalization of the life insurance business in India was a result of the Industrial Policy Resolution of 1956. which commanded a monopoly of soliciting and selling life insurance in India. created huge surpluses. the primary obligation to its policyholders. 5 for a US $ . whose money it holds in trust.  Act as trustees of the insured public in their individual and collective capacities. In english it means "with life also. 1 Service Brand of the Country. According to The Brand Trust Report 2011. which had created a policy framework for extending state control over at least seventeen sectors of the economy. Life Insurance Corporation of India.  Meet the various life insurance needs of the community that would arise in the changing social and economic environment.  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.

Facility of Switching between various funds. 2. 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. 5. 3. Scheme can be surrendered at any time. One switch every year is free of cost. The policy can be surrendered at any time. Happy and secured employees work better. a unit linked plan for management of Gratuity Funds. In case the Policyholder’s Unit Account w. 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. mb iti on Z. Alternatively. which in turn reduces the employer’s tension. LIC brings you LIC’s GRATUITY PLUS PLAN. Five lacs in the Policyholder’s Unit Account. Hassle Free Administration of Scheme 8. Assistance for execution of legal documents and installation of scheme. There is no bid offer spread under this scheme. 4. 1. Gr 8A 1. 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. Group Insurance is an insurance which covers a group of people (like employees of a common employer or professionals in a common group). 7. 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. the company can also choose for each member a uniform level of cover equal to a minimum of one months salary or more . There is no surrender penalty imposed. It provides for life insurance cover at a very minimal cost. co m . 2. 3. In case of death of member. Cover can be equal to the gratuity payable for anticipated service. Flexibility in structuring the Gratuity Costs based on performance of Fund. life insurance cover as opted for by Policyholder will also be paid by the Corporation. Choice of 4 funds to meet various risk appetites. 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. 6. subject to a minimum balance of Rs.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.

Assured Benefit Payment of 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity. 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. m . at the end of the 20th year. w. in the case of the Contributions scheme qualifies for exemption under Section 80C of the Income-Tax Act. Act.falls below this limit. if any. if term of the policy is 20 years. 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. At maturity. 19th year and 40% of the Sum Assured along with the reversionary bonuses and the terminal bonus. 1. 3. 2. if any shall be payable.80% of the contribution (s) towards the past service liability are treated as deductible business expenses spread over in the subsequent years of payment. 20% of the Sum assured will be payable at the end of the 17th. The annual contribution is treated as a deductible business expense in term of Section 36(1) (IV) of the I. 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. 1962. 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.18th. the policy shall compulsorily be terminated and the balance amount in the policy holder’s Unit Account will be refunded to the policy holder. co The provisions relating to the approved Superannuation Scheme are set out in Part ‘B’ of the Fourth Scheme of the Income-Tax Act. For example. 1961 and Part XIII of the Income Tax Rules. In terms of a Notification issued by the Central Board of Direct Taxes . In addition. The employee’s contribution. mb iti on Z.T. The plan can be taken by a parent on his or her own life. Gr 8A Benefits LIC’s Jeevan Anurag is a with profits plan specifically designed to take care of the educational needs of children. The income tax concession will be available only if the scheme is approved by the CIT.

LIC will not pay second time bonus. Double accidental cover upto age 70. 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. 250/-. 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. is not less than Rs. Gr 8A mb iti on Z. a free paid-up policy for a reduced sum assured will be automatically secured provided the reduced sum assured. Since Mr. Now on Maturity Pankaj will receive Rs. Pankaj dies during the Premium Paying Term. quarterly. Premium Stoppage: If payment of premiums ceases after at least 3 years premiums have been paid.45/. Key Features: 1. 6. 1 lakh equal to sum assured amount. monthly or through salary deductions as opted by you throughout the selected term of the policy or till earlier death. Limited premium payments. 2.is the estimated bonus at Rs. 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. 4.1 Lakh (sum Assured) + Accrued bonus till Mr. 5. risk cover continues till the death of the policy holder.) co m . Even after the Premium Paying Term (PPT) is over. In case. 2. that means Zindagi Ke Saath Bhi Zindagi Ke Bad Bhi… Jeevan Anand plan no. 1 lakh sum assured Plus Rs. takes Jeevan Anand policy for 25 years for Sum Assured Rs. Pankaj. Mr. The risk cover will continue even after the maturity. 3.per thousand per year. his nominee will get additional Rs. 1 lakh.(Rs.DETAILS OF WHOLE LIFE SCHEME AND ENDOWMENT SCHEME Summary: Jeevan Anand is the combination of Endowment Assurance and Whole Life plan. Pankaj.12.500/. In case. Jeevan Anand Plan Premiums are limited. Pankaj has already received the bonus. Pankaj’s death. age 25 years. Mr. For Example: Mr. ww w. dies ( After premium paying term is over) at the age of 60 years.500/. his nominee will get Rs. exclusive of any attached bonus. Jeevan Anand is the combination of Whole Life and Endowment Assurance plan. 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. The reduced sum assured will become payable on the event as stipulated in the policy. half-yearly.1. You only pay till the selected term of years or until death if it occurs during the term period.12.

if it occurs earlier. 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. Premium term: 5 yrs Max Premium term: 57 yrs Minimum Sum Assured: Rs. You will get the profit in the form of Bonuses. if any. Gr 8A mb Accident Benefit: Double Accident Benefit is available during the premium paying term and thereafter up to age 70. they form part of the guaranteed benefits of the plan. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year.(Endowment term) co m .00. An amount equal to the Sum Assured is payable if death occurs after the premium paying term. However. 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. 1. on Z. Final (Additional) Bonus may also be payable provided the policy has run for certain minimum period. PPT Mat. Age: 75 years Min.Bonuses : Jeevan Anand is a with-profit insurance plan and participates in the profits of the Corporation’s life insurance business. Maximum Accident Cover available under this plan will be Rs 5 lakh (this limit excludes accident benefit taken under other plans). Maturity Benefit: Sum Assured along with all vested bonuses payable at the end of the term to the policy holder. No Bonus is paid on death after the premium paying term. surrender values are available on the plan on earlier termination of the contract. Once the bonus is declared. w. Bonuses will be added during the selected term or till death. 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.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.

In some circumstances. & Service Tax Rs. 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.1292. Largest insurance Company in the world in Customer Base (23 crore customers) 2.REASONS WHY LIC IS A MARKET LEADER IN LIFE INSURANCE SECTOR Positions: 1. co m Guaranteed Surrender Value: The policy may be surrendered after it has been in force for 3 years or more. 14 Cr. "Golden Peacock" award for Excellence in "corporate Governance" 10. by "Economic Times and AC NEILSEN ORG MARG" for the year 2007 for the 5th consecutive year. This value will depend on the duration for which premiums have been paid and the policy duration at the date of surrender.1 insurance company in the world in terms of agency (about 1. LIC is one of the Highest income tax playing Organization. in case of early termination of the policy. No.75 Cr. LIC has paid advance Tax Rs. Gr 8A mb iti Who should buy Jeevan Anand policy? Since Jeevan Anand is an endowment assurance plus whole life policy. the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. 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. 6.2007&2008 (Voted by Consumers) 13. 15 Cr. 11. Award – Recognition : 8. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death or at maturity. For Financial Year 200708. "Outlook Money NDTV Profit Award 2007" ww w. Only 4 countries in the world have more population that LIC`s policy holders. 9.Policies in 20072008. 2nd Biggest Real Estate Owner next to Indian Railways. .LIC adjudged the "Most Preferred Life insurance Company of the year" at the "CNBC AWAAZ" consumer award 2007 for 3rd time in succession. 4. Adjudged "The most trusted service Brand" in India.Awarded Reader Digest's "Trusted Brand"2006. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium.LIC adjudged as "Best life insurance Company of the year" at the "2nd"NDTV Profit Business Leadership Awards-2007. Has Highest insurance Professionals ( Club Member agents ) 7. LIC’s policy on surrenders: In practice. 12.1 Million agents) 3.1 insurer in the world in Volume & Sold around 3. Any extra premium(s) paid and premium(s) towards Accident Benefit are also excluded. the surrender value payable may be less than the total premium paid. 5. LIC is No.2627.

Settlement of Claims 18. Most Sporting Corporate Championship Award Winner-2008 . AP online.Policy Holder's Portal allow on line access to policy status and other details. 16. through SMS. Premium Payment Facility extended through networked 2048 branches. "SKOCH Challengers Award 2008" for "Jeevan Madhur". 17.07%) co m 14.One of the Lowest outstanding Claim Ratio in the world ( Maturity+S B Claim0.Use of High Tech-WAN.an institution builder promoting many financial and insurance institutes like NSE.ww Social Strength 30. Now LIC Premium can also be paid through. insurance institute of India etc. Honouring of the Commitment .1 insurance Company in the world in terms of claims paid.EDMS to make LIC a paperless office.54 lac policies sold through "Jeevan Madhur"Plan. 19.LIC . Double crown for LIC in corporate Olympics 2008. ECS. collecting bank (Axis Bank). 27. 8. NCDEX. 31. online portals. Fiji and London and has joint venture operating in Sri lanka. 20. New offices will be hortly oprned in Australia.LIC has foreign operations in Mauritius. 1251 OR 020-25514248. through selected agents.insurance Sector.Prompt settlement of claims (97% maturity claim settled on or before due date) 21. Stock Holding Corporation of India. 29. ATM's through internet. National insurance Academy.1st Pension company in India is floated by LIC as "LIC Pension Fund Ltd" on 21st Nov 2007.First to create waves in micro insurance sector by insuring people below the poverty line. 36. 26. USA&Canada. 33.IVRS & EDMS 24. In year 2007-2008. iti on Z. Facility is available 24 7. 34. 23. Facility can be availed on following phone Nos. w. 35. 25.LIC is second largest PC user in the country. mb Advanced Technology-For better Customer Service 22. Dial.Computerized and networked 2048 branch offices and 159 satellite offices throughout the country. "Web 18-Genius of the web Award" Conferred for the best website in insurance Category 15.Widest range of plans (about 48) for every need of the customer of 0 to 79 years of age.LIC is known as "Pension Provider" of the country. 28.1251 for details. LIC Mutual Fund.Info centre set up in 12 cities for customers to interact easily. "Loyalty Awards 2008".Biggest Portfolio of Group insurance schemes available.No. Bahrain & Saudi Arabia. Nepal.45 interactive Voice Response System (IVRS) centers all over the country to provide information on policy servicing. 32. Gr 8A "Suvidha info Serve KIOSKS" all over India.LAN. LIC settled 139 lakhs claims during the year 2007-2008.Enabling Policy servicing & payments through all branchs in the country.LIC Settles 2.21 claims per second.

78 Crs. It is a remarkable achievement that not only has LIC continued w. 29.O. Bima School and Bima Banks. co m .691 crores 45. drainage & housing etc.26%.9 million policies generating a first year premium income of Rs. KEY ACHIEVEMENTS mb iti People's Money for People's Welfare 44.In socially oriented sector like water. 52. relief of poverty etc. Gr 8A Financial Strengths 49.76. Additionally.LIC invested more than 11.5. in infrastructure sector is Rs. 5606.Central Zonal Office opened at patina to caterto the needs of states of Bihar.20% and in the maturity segment at an exemplary low of 0. 48.630 crores. During the 2008/09 financial year. 43.To its resounding credit. 1.20 billion) in death claims. LIC sold more than 35. 41. the corporation settled 577. on Z. a close-ended.ww Current figures show the outstanding claims ratio under the death category at no more than 2.Total investment in Nation Building Activities is 5. 40. 52.13 crore citizens through "AAM ADMI BIMA YOJANA" & " JANASHREE BIMA YOJANA".559. viz Pune Division (i) and Pune Division (ii). Largest Financial institutional investor both Equity market & Term House.000 Crs.07 were Rs. Jharkhand and Orissa. 38.Expending Distribution Channel through Bancassurances. During this period. Schools and Banks under Bima Gram.56. 51.514. On an average Rs.10.R."Jeevan Saral" one of the product of LIC got "Best innovation product " award from I.655 crores. LIC has a proud record of innovative products that find instant acceptance and success.100 crore invested every day. For example.321 crores.74. "Golden Jubilee Foundations" established for undertaking charitable activities like education. health.10.A.89.20 billion) in premiums in 45 days of launch in the year 2009.Different incentive schemes for villages.953. Corporate Agencies. the Corporation was able to settle 97% of all maturity claims on or before the due date signing out Rs.32.D.76. 42.635 crores during 2007-08 & total investment in this sector is Rs.000 Crs.92 crore (US$ 11 billion) despite the global slowdown (Source: IRDA). Broker ship & Chief Life insurarance Advisor (CLIA).000 death claims and 1. Out of Total income of Rs. 5 new Divisional offices were also opened in 2007-08.28 Crs. 37.LIC's investment income in 2007-08 was Rs.105. 47. the Corporation’s Jeevan Aastha scheme.Highest Number of Corporate Clients in Group insurance Scheme.000 Crs.Largest institutional investor in Share Market. 39.84 million policies collecting Rs.was splited in 2 divisions.Total investment in Social Sector Rs.90 crore (U S$ 1. 6. 50. from the Sale of Equity.LIC has covered lick Risk of 1. Pune D. During theyear 2007 LIC earned the profit Rs.3. singlepremium plan sold about 1. the corporation paid Rs.44 million maturity claims. New East . 46.Total Assets of the corporation as on 31.664 crore (US$ 2.40.Very Unique Salary saving Portfolio.10 billion) in settlement. LIC has invested Rs.85 crore (US$ 6.

It was bestowed the Readers’ Digest Trusted Brand Platinum Award. for instance amongst several awards.facebook. LIC was felicitated with the NDTV-Profit Business Leadership award as also the Asia Brand Congress. LIC’s innovations and practices were recognized when it won the NASSCOM Award for the Best IT User We are at Facebook ww www. In the recent past. its brand leadership has been on evidence. the CNBC Awaaz Consumer Award in 2009 and the Customer and Brand Loyalty Award in 2009. five years in a row. too. in both 2008 and 2009. In 2008. co m .com/Gr8AmbitionZ w. Even in the field of technology. Gr 8A mb Don’t forget to LIKE us there for Daily Updates  iti on Z. In the same year.to maintain the trust of consumers during the economic downturn but has also been felicitated with several awards.Brand Leadership Award. In fact. Brand Equity rated LIC as the Most Trusted Service Brand. LIC emerged as the Top Brand in the Insurance Category in the survey conducted by ACNielsen for Brand Equity.

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