A Research Report On "50 Golden Years of Life Insurance Sector"

T.Y.
BBI 50 GOLDEN YEARS OF LIC
A RESEARCH REPORT ON
“50 GOLDEN YEARS OF LIFE INSURANCE SECTOR”
SUBMITTED BY
UPENDRA BHWARKAR,TY.BBI
ROLL.NO 8261
UNDER THE GUIDANCE OF
PROF. PATRACIA PEREIRA
ST.ANDREWS COLLEGE OF ARTS, COMMERCE,

SCIENCE AND MANAGEMENT
2012-2013
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T.Y.BBI 50 GOLDEN YEARS OF LIC
DECLARATION
I, UPENDRA BHAWARKAR, ROLL NO.8261student of St. Andrews College,

Bandra, in the third year bachelor of commerce in banking and insurance (semester VI) ,
hereby declare that I have completed the research report on the topic of “50 GOLDEN
YEARS OF LIFE INSURANCE CORPORATION” in the academic year 2012-2013.
The information submitted is herein is true, to the best of my knowledge.
Stamp of college signature of student,
(St. Andrews College of arts, (UPENDRA BHAWARKAR)

Commerce, Science and
Management)
Signature of coordinator signature of external examiner
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CERTIFICATE
I, PATRACIA PEREIRA here by certify that the following student of St.Andrew’s

College of T.Y.B.Com (Banking and Insurance) Semester (VI) as completed her
research report on “50 GOLDEN YEARS ON LIFE INSURANCE CORPORATION”
for the academic year 2012-2013. Information submitted is true and original to the best
of my knowledge.
Stamp of college signature of professor
(St. Andrews College of arts (PROF. PATRICIA PEREIRA)

Commerce, Science and
Management)
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ACKNOWLEDGEMENT
It gives me immense pleasure in acknowledging the valuable & co-operative

assistance extended to me by the various individual who have helped me successfully in
completing this project.
First of all I would like to show my gratitude to Professor PATRICIA PEREIRA for
their assistance,encouragement and support on the topic “50 GOLDEN YEARS OF
LIFE INSURANCE CORPORATION”.
I would also like to express my gratitude to the employees working in federal bank for
helping me in my survey to complte my project.
I would like to thanks my parents, friends and colleagues who have supported me during
the making of this research report. The information provided by them has helped me
gain practical understanding of the subject.
I would like to thank the Mumbai University for giving me the opportunity to carry out
the research.
It is the encouragement of all this people that has helped me proceed towards achieving
my goals.
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INTRODUCTION
In the history of life insurance in India, the Life insurance Corporation of India has
indeed written a golden chapter. Conceived brilliantly by visionaries in 1956, it was
brought together amalgamating 245 insurance companies into a National Institution to
spread the message of life insurance to every nook and corner of this vast country. The
stirring messages from the then prime minister Pandit Nehru and the then finance
minister Shri C.D.Deshmukh heralded the start of a glorious saga of security. The
organization was well directed to work on business principles. The motto aptly chosen
from the Bhagavad-Gita, ‘Yogakshemam Vahamyaham’, set the tone for service to the
numerous staff, agents, development officers and officers spread all over the country.
Despite teething troubles, a strong institution gradually emerged with a great

family spirit of working together in the offices and in the field. In the initial years, the
organization drew on the best practices of the various companies and soon set new
norms and standards. Manuals and standard procedures infield all the offices, and
contributed for efficient work practices. A great spirit of service before self did permeate
the organization, due to the tall leadership and the very sincere and dedicated work of all
concerned in the office and in the field. Good standards in recruitment of staff and field
workers ensured high growth momentum.
Now LIC is one of the best brands in the country. It has won praise from all
quarters for its outstanding growth of Life insurance and for its contributions to social
and economic infrastructure. A Life fund of a few hundred crores rupees has now grown
to around four hundred thousand crores rupees, making a very vital contribution to the
Indian economy.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from
its corporate office in the year 1956. Since life insurance contracts are long term
contracts and during the currency of the policy it requires a variety of services need was
felt in the later years to expand the operations and place a branch office at each district
headquarter. Re-organization of LIC took place and large numbers of new branch offices
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were opened. As a result of re-organization servicing functions were transferred to the

branches, and branches were made accounting units. It worked wonders with the
performance of the corporation. It may be seen that from about 200.00 crores of New
Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it
took another 10 years for LIC to cross 2000.00 crores mark of new business. But with re-
organization happening in the early eighties, by 1985-86 LIC had already crossed
7000.00 crores Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 109 divisional
offices, 8 zonal offices, 992 satellite offices and the Corporate office. LIC’s Wide Area
Network covers 109 divisional offices and connects all the branches through a Metro
Area Network. LIC has tied up with some Banks and Service providers to offer on-line
premium collection facility in selected cities. LIC’s ECS and ATM premium payment
facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS,
Info Centers have been commissioned at Mumbai, Ahmadabad, Bangalore, Chennai,
Hyderabad, Kolkata, New Delhi, Pune and many other cities. The satellite offices are
smaller, leaner and closer to the customer. The digitalized records of the satellite offices
will facilitate anywhere servicing and many other conveniences in the future.
LIC continues to be the dominant life insurer even in the liberalized scenario of
Indian insurance and is moving fast on a new growth trajectory surpassing its own past
records. LIC has issued over one crores policies during the current year. It has crossed
the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy
growth rate of 16.67% over the corresponding period of the previous year.
From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same motives
which inspired our forefathers to bring insurance into existence in this country inspire us
at LIC to take this message of protection to light the lamps of security in as many homes
as possible and to help the people in providing security to their families.
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HISTORY
Life Insurance in its modern form came to India from England in the year 1818.
Oriental Life Insurance Company started by Europeans in Calcutta was the first life
insurance company on Indian Soil. All the insurance companies established during that
period were brought up with the purpose of looking after the needs of European
community and Indian natives were not being insured by these companies. However,
later with the efforts of eminent people like Babu Muttylal Seal, the foreign life
insurance companies started insuring Indian lives. But Indian lives were being treated as
sub-standard lives and heavy extra premiums were being charged on them. Bombay
Mutual Life Assurance Society heralded the birth of first Indian life insurance company
in the year 1870, and covered Indian lives at normal rates.
Starting as Indian enterprise with highly patriotic motives, insurance companies

came into existence to carry the message of insurance and social security through
insurance to various sectors of society. Bharat Insurance Company (1896) was also one
of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave
rise to more insurance companies. The United India in Madras, National Indian and
National Insurance in Calcutta and the Co-operative Assurance at Lahore were
established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth
in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in
Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay
Life) were some of the companies established during the same period. Prior to 1912
India had no legislation to regulate insurance business. In the year 1912, the Life
Insurance Companies Act, and the Provident Fund Act were passed. Life Insurance
Companies Act, 1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act discriminated
between foreign and Indian companies on many accounts, putting the Indian companies
at a disadvantage.
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The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crores, it rose to
176 companies with total business-in-force as Rs.298 crores in 1938. During the
mushrooming of insurance companies many financially unsound concerns were also
floated which failed miserably. The Insurance Act 1938 was the first legislation
governing not only life insurance but also non-life insurance to provide strict state
control over insurance business.
The demand for nationalization of life insurance industry was made repeatedly in
the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act
1938 was introduced in the Legislative Assembly. However, it was much later on the
19th of January, 1956, that life insurance in India was nationalized. About 154 Indian
insurance companies, 16 non-Indian companies and 75 provident were operating in India
at the time of nationalization. Nationalization was accomplished in two stages; initially
the management of the companies was taken over by means of an Ordinance, and later,
the ownership too by means of a comprehensive bill. The Parliament of India passed the
Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance
Corporation of India was created on 1st September, 1956, with the objective of
spreading life insurance much more widely and in particular to the rural areas with a
view to reach all insurable persons in the country, providing them adequate financial
cover at a reasonable cost.
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MEMBERS OF THE BOARD OF THE CORPORATION
 Shri. T.S. Vijayan (Chairman)
 Shri. D.K. Mehrotra (Managing Director - LIC)
 Shri. Thomas Mathew T. (Managing Director - LIC)
 Shri. A.K. Dasgupta (Managing Director - LIC)
 Shri. Ashok Chawla (Finance Secretary, Ministry of Finance, Govt. of India)
 Shri. R. Gopalan (Secretary, Department of Financial Services, Ministry of

Finance, Govt. of India.)
 Shri. Yogesh Lohiya (Chairman cum Managing Director, GIC of India)
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LIC CORPORATES IN 50 YEARS.
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CENTRAL OFFICE BUILDINGS
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OBJECTIVES OF LIC
 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, in the investment of funds, the primary obligation to its policyholders,
whose money it holds in trust, without losing sight of the interest of the community as a
whole; the funds to be deployed to the best advantage of the investors as well as the
community as a whole, keeping in view national priorities and obligations of attractive
return.
 Conduct business with utmost economy and with the full realization that the moneys
belong to the policyholders.
 Act as trustees of the insured public in their individual and collective capacities.
 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.
 Promote amongst all agents and employees of the Corporation a sense of

participation, pride and job satisfaction through discharge of their duties with dedication
towards achievement of Corporate Objective.
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RESEARCH METHODOLOGY
 Research Design: I have used a Descriptive research design as the problem is already
known. The problem is that BALIC does not have enough recall ability to tap the
huge market of insurable people. So a Descriptive research design is used to find
solution to this problem and determine the best possible alternatives.
 Target Population: Target population for this research was the people who do
financial planning and reside in the area of Delhi and NCR.
 Sampling Technique: Random sampling is used to conduct the survey of the

research.
 Sample size: A sample size of 20 people was chosen who were willing to share
information and wanted to be a part of the survey.
Research Tools and Questionnaire: For this research, Personal contacts, personal
observation and market survey tools were used. We have personally contacted the
Financial Advisors of the company after getting the data from the company and got the
questionnaires filled.
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FROM CREATING IDENTITY TO FORTERING UNITY.

(Flash Back 1957).
Down the ages Kings and Governments, Communities and individuals, have ever
tried to fulfill this responsibility. They have endeavored to protect the welfare of their
subjects, their families. Some were more successful than others. In present day India, a
Welfare State has pledged itself to protect the interests of its people and to improve the
lot of the common man. And one of the many ways in which it is putting its promise into
effect is through the nationalization of Life Insurance Corporation of India.
Life Insurance holds out a golden promise which the LIC, backed by the
government of India, is bound to fulfil. “Your welfare is my responsibility”. These are
the words which the corporation has adopted for its motto. And these sacred words are in
themselves an irrevocable pledge.
Soon after the enactment of the LIC bill, the question of choosing a motto for LIC
was considered by Shri H.M. Patel. When Shri S. Ananthachari, senior stenographer to
the last quadrant of verse 22 of chapter IX of the Gita, everybody appreciated it.
The protective hands of life Insurance and assuring continuance of the glow of life
(symbolized by the luminous flame of a lamp) from insignia of the Life Insurance
Corporation of India. This was designed by Advertising and Sales Promotion Associates,
a leading advertising agency.
The corporation has a corporate flag and a Corporate Anthem. Traditionally, flags
and Anthem are powerful symbols of nations and organizations it is hoped that the new
Flag and the Anthem would prove a unifying force and a rallying point for all connected
with the Corporation. The success of an organization is by and large ensured when there
is an overall commitment to the aims and objectives of the organization. A corporate
Flag plays an important role in bringing and commitment amongst members of the
organization. With this objective in mind it was decided to have a Corporate Flag for the
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Life Insurance Corporation of India and keeping in mind the abundant talent available
within the organization itself, a competition for the 1991.
The design of the Corporation Flag selected was given some finishing touches by
the Arts section at LIC’s Corporate Office and the Corporate Flag was finalized. The
Corporate Flag is sky blue in colour, depicting the pure clear sky, its vast expanse;
serene; majestic and beautiful. The spectrum of rainbow colours on the left depicts the
unity in diversity, the bright hues of life, hopes and aspirations of humankind. The LIC
emblem appears in the centre, soaring high in the blue expanse and helping people shape
their hopes and aspirations.
The ratio of the width of the flag to its length is 2 to 3. The cloth used is bosky. It
could also be cotton or silk. The emblem and rainbow colours are screen – printed only
on one side of the flag. For the small flag a steel pole with a round base is used.
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FROM ‘INVESTING FUNDS’ TO ‘EMPOWERING NATIONAL

DEVELOPMENT’ (Flash back 1957)
Life insurance investments
Securities taken over by the Corporation from the former insurers on the 1st
September, 1956 were worth Rs.307.85 crores. Of these Government Securities
accounted for Rs.215.02 crores (69.8%), Approved Securities Rs. 14.66 crores (7.3%),
Foreign Government Securities Rs. 14.66 crores (4.8%) and investments in Debentures
and Preference and Ordinary Shares Rs. 55.72 crores (18.1%).
In the seven months ended 31st march 1957, the Corporation invested Rs. 19.86
crores in Securities in the following proportions:
Investments made from 1-9-56 to 31-3-57

Book value % to the
In Crores Total
Of Rupees
Government Securities 13.05 65.7
Approved Securities 1.25 6.3
Foreign Investments 0.03 0.2
Debentures and Preference
And Ordinary Shares 5.53 27.8
Rs. 19.86 100.0
India is on the brink of a revolution in terms of economic and social growth. On a

global scale, India’s potential is on a par with the moat technological, innovative and
resourceful countries in the world. At LIC, we understand our country’s need of the hour
– building a strong foundation for big drams to be launched. It is in accordance with this
scene of responsibility that the corporation has deployed its funds to the best advantage
of its policy holders as well as the nation at large, ensuring the nation’s growth in terms
of infrastructure, technology, housing, water supply, etc.
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For 49 years, LIC has not only been excelling in its primary job of insurance, but it
has also taken the centre stage in encouraging India’s social and industrial development.
To put a figure to fact, LIC’s total contribution towards the benefit of the community
amounts to Rs. 3, 85, 639.07 crores as on 31st March, 2005. LIC has extended its horizon
to encompass diverse fields of social welfare.
LIC’s investments are regulated by the Government from time to time, to provide
basic amenities like potable water, drainage system, housing, electrification and
transport to the people of India. Not less than 75% of our accretions to the fund are
invested in central Government Securities, Government Guaranteed Marketable
Securities, Loans in the Socially Oriented Sector for approved purposes such as power
(electricity), housing, water supply and sewerage, road transport and co-operative
industrial estates.
The LIC has always been a major source of funds for housing development
projects in the country. Millions of people today dream of a permanent shelter that they
can call their own. The LIC, in its mission of social uplift, pledges to convert these
dreams into reality. The Corporation currently provides financial assistance to state
governments for social housing schemes for economically weaker sections, low-income
groups, middle-income groups, state government employees and rural population. The
total contribution of LIC up to 31st March, 2005 to housing development activities by
way of loans/bonds to state governments, state-level apex societies, HDFC, HUDCO,
NHB, LICHFL, etc. and loans under mortgage housing schemes amounted to Rs. 21,436
crores.
Water is the most essential of life’s necessities. LIC takes care that all Indians
citizens have their fair and regular share of it. LIC’s total investments to the tune of Rs.
10, 346 crores (up to 31st March, 2005) speak volumes about its endeavour in this field.
While our nation works towards progress, LIC supplies the energy to sustain its
ambitions. LIC is the single largest contributor in the progress of electrification schemes
in the country. Its financial assistance to state electricity boards/power corporations for
power generation projects had grossed a whopping Rs. 25 727 crores up to 31st March,
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2005. Constantly expanding our nation’s transport system, LIC has been plying new
roads for the future.
It is difficult for a nation to move ahead on the path of progress without a stable
transport why LIC has been assisting this vital determination. Transport infrastructure
projects pertaining to rail, road, sea and air, have all been receiving due support from the
Corporation in the form of its investment to the tune of Rs. 2, 463 crores (up to 31st
March, 2005). The Corporation has been assisting development of road transport by
providing financial assistance State Road Transport Corporations for augmenting their
fleet of buses. The total investment in this sector up to 31st March, 2005, amounted to
Rs. 1, 387 crores. In 1997-98, the scope of the socially-oriented sector was widened to
accommodate infrastructure projects pertaining to ports, railways and airports.
It’s well understood by all that the crux of the nation’s economic growth lies in its
industrial development. Be it assisting big finance corporations like IDBI, IFCI, ICICI
bank, etc. or helping small scale and medium scale industries, the LIC has been in the
forefront to boost industrial growth ib the country.
The total investment in the corporate sector made by way of loans as on 31st
March, 2005 was Rs. 9, 963 crores and by way of subscription to shares/debentures on
the same date was Rs. 1, 04,568 crores. Thus, the corporation has made a distinct
contribution towards growth in industrialization and generation of skilled and unskilled
employment opportunities in the country.
With a strong focus on industrial development, LIC helps the Indian economy become
self-sufficient and stable. The life Insurance Corporation of India has been touching people’s
lives in more ways than one, simple because we respect this glorious nation, in which we have
witnessed immense growth since LIC’s formation in 1956. And so, our policy of people’s
money for people’s welfare is in essence our way to thank the nation. LIC’s investments lead
our nation to a brighter, better tomorrow, boosting our nation’s passion to surpass world
standards and arise to the top. We can make it happen and we will transform India into the
next Supper Power.
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FROM THE FIRST VALUATION TO THE THIRTY-FIFTH

VALUATION (Flash back 1959).
The Sunday Statesman
Three years after nationalization, the LIC has made its first big gift to the old
policyholders, indicating that its management of life funds will not reduce the benefits
which they normally expected from the companies taken over. Such apprehension was
felt mainly by those whose policies gave them a right to share in profits on payment of
higher rates of premium. Rates of bonus have been determined by the financial position
of the 245 companies at the time of nationalization; though some of the rates are lower,
they compare well on the whole with those given by the companies. The policyholders
have thus gained satisfaction on two points. The first is that the extra premium he is
charged for policies with profits will not be lost through nationalization resulting in little
or no profits to share, and the second, that the wholesale merger of good and bad
companies will not obliterate the distinctions between the benefits formerly provided.
This is consistent with the terms of the LIC Act, 1956 and the assurances given at
the time of nationalization. It should certainly enhance the LIC’s reputation.
The Hindu
The grouping of the various insurers and the fixation of bonuses on the basis of indices
are no doubt sound in principle. But it should be made sure, when the final declarations
are made, that the bonus additions to policies in force happen to be larger and not less.
There could have probably been two or three more groups with suitable indices in order
that the stronger financial position of particular units was not whittled down
considerably by their being grouped with a large number of units.
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Hindustan times
Meanwhile the majority of policyholders whose business naturally has been with
well-conducted and leading life offices will be relieved to find that their interests have
not been unduly sacrificed to the cushioning of losses to others who have been less
happy in their choice of insurers. In some cases, however, the bonus rates are lower than
what the same units had been able to announce under private management at the
preceding valuation and where the reduction is not justified on actuarial grounds the
corporation and the central Government will do well to consider whether the reasonable
expectations of policyholders should not be fulfilled by such adjustments as it is possible
to make in the scheme now announced.
Ultimately the Corporation will have to switch over to a uniform rate, but the
process has to be gradual and effected through the progressive reduction in the
differences between the various rates from one valuation to another. Once the
Corporation has had time to regularize the valuation of assets and record investments to
the best advantage, the basis for imputing differences to the bonus capacities of the
various units must dwindle and disappear.
Hindustan standard
With the announcement by LIC of India’s tentative scheme of differential bonuses

for holders of with profits policies, a long period of suspense may be said to be over. The
final scheme will not in all probability materially differ from the one now published; nor
is the Government likely to withhold approval. The long period of waiting might have
been exasperating to the policyholders but it was not altogether unnecessary. The bonus
scheme involved an important policy decision, how to distribute the profits, at a uniform
rate or on differential bases reflecting the financial position of the insurers. The LIC has
after long cogitation opted for equity and has decided to reward those who had the
prudence to go in for sound concerns. This is not, however, an unexpected departure.
The LIC Act had, in fact, provided for this and the Corporation is authorized to make,
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with the prior approval of the Central Government, regulations for the purposes of
declaring differential bonuses.
The valuation report covering the period from the appointed day (September 1,
1956) to December 31, 1957, on which the bonus scheme is based, indicates a further
improvement in mortality experience and this has contributed in no small measure to the
profits earned. Better and more economic management is also a fact. The rate of interest
earned by the Corporation has been, and is likely to continue to be higher than that
adopted for valuation. And if unsound investment, overvaluation of assets and
defalcation, which were not uncommon before nationalization, can be stopped, the LIC
is sure to make larger trading profits in future.
The Indian Express
The declaration of bonuses by the LIC will be recognized as a heartening

reassurance that the core of the business is sound since one can safely rule out dubious
methods of valuation which less reputable companies are known to have adopted in the
past. There is reason to feel that the effect of the consolidation of life business in India
will make stronger units lend strength to the weaker rather than be weakened by the
latter. At the same time, the fear that those who had insured with the better class of
companies and were accustomed to handsome bonuses after each valuation would have
to lose a part or even perhaps the whole of these windfalls for the benefit of the less
prudent of discriminating policyholders is now seen to be groundless.
Whether or not the LIC is legally obliged to follow the terms of the policies as
originally issued by the various companies, the methods adopted by the Corporation in
distributing the actuarially determined profits are unexceptionable. The final
classification of differential bonuses, it is expected, will be more than what the
companies themselves may have adopted in 687 cases and less in 75 cases, while in only
14 cases would comparison be difficult. If the rate of growth of new business is of
importance to the essential soundness of life business, the signs here are also
encouraging.
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One might, therefore, say that despite numerous difficulties which still persist, the
LIC, as a business unit, is well-set for marked progress. Some of the differences in terms
of policies issued in the past were so clearly the result of the competitive nature of the
business that they must now be regarded as more or less anachronistic. In a country
which looks forward to reducing economic inequalities, the LIC would be justified in
concentrating on two important aims, consistent with security and soundness. The first is
the maximization of cover for the individual at minimum cost; the other is the
maximization of saving for the community through this source.
Tribune
With steady improvement in managerial in the expenses of the Corporation, the

rate of profits should materially go up. The reason put forward in justification of
differential bonuses instead of a uniform rate of bonus is perfectly valid. It is only fair
that the rate of bonus applicable to the policies of different units should reflect their
contribution to the profits disclosed in the valuation report. The fact that the Corporation
has already achieved financial strength equal to that of former leading insurance
concerns reflects credit upon the management. There is no reason why its performance
should lag behind that of the units placed in the Special Groups.
2005
Old policyholders to reap windfall in LIC’s golden jubilee bonus plan
MUMBAI: The policy holders of the Life Insurance Corporation of India will get a
special bonus as part of the insurer’s golden jubilee celebrations. The bonus amount will
be significantly large on old policies. The Corporations has also announced a special
golden jubilee scheme, ‘Bima Gold’.
The maximum allocation has been made for those policy holders who bought
insurance before March 31, 1981. They will receive an additional Rs. 50 per Rs. 1, 000
insured, while policy holders between Rs. 45 and Rs. 6 per Rs. 1,000 insured as per their
year of investment.
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Policyholders from April 2001 to date will get Rs. 5 per Rs. 1, 000 insured. LIC
will spend an additional Rs. 2, 100 crores in payment of the golden jubilee bonus to its
clients. “The old policy holders have contributed maximum to the life insurance fund so
it is only natural that they should be rewarded more,” said an official.
‘ET” had reported in its edition dated August 17 that LIC was considering a golden
jubilee bonus and was launching a special golden jubilee product in the first week of
September. Officials expect Bima Gold to be a best seller because it is a low cost
protection plan with return of 15 percent of the sum assured at the end of 4th & 8th years.
The policy is likely to be closed at the end of the current financial year. The bonus was
announced by finance minister P. Chidambaram at a function to mark the golden jubilee
year of the Corporation, which was inaugurated by Prime Minister Manmohan Singh.
Mr. Chidambaram said the total income of the Corporation during financial year
04-05 was Rs. 1, 07,969 crores, including a total premium income of Rs. 70,857.98
crores and income from the Investment portfolio of Rs. 33,652 crores. Today, LIC has
grown into a $100bn corporation with the assets valued at Rs. 4, 40,043 crores and the
Total Life Fund as on March 31, 05 being Rs. 3, 85,000 crores.
Windfall awaits LIC policyholders
It is gain time for Life Insurance Corporation’s policyholders. Recently, to celebrate the
corporation’s 50th anniversary, the Prime Minister announced a special bonus for
policyholders whose policies had a profit component. On Tuesday, the Finance Minister
announced a final additional bonus over and above the special bonus. Although all
policyholder will receive the regular and special bonus, you are entitled to the final
additional bonus announced on Tuesday only when your policy matures.
The concept of the final additional bonus originated some time back when the
premium rates were brought down. However, since the benefit of the lower rates could
not be passed on retrospectively for obvious reasons, the Corporation decided to pass on
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the benefit by announcing the final additional bonus to policyholders at the time of
maturity. This is in addition to the regular bonus that is announced annually based on the
surplus generated by LIC. The bonuses are available for all policies – endowment,
money back, whole life – but only on plans that have a profit component. Earlier,
endowment and other policies had the option of a without profit plan, which has been
discontinued. But for people who bought those plans and are awaiting maturity, there is
no benefit of bonus.
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NON – MEDICAL SCHEMES: FROM AN EXPERIMENT

TO A SUCCESS
The life Insurance Corporation of India has, as an experimental measure, decided

to extent transaction of non-medical business to all areas. As a result, no medical
examination would be required for consideration of proposals under certain plans of
assurance for sums assured up to a specified maximum. Adequate safeguards, which
include a detailed report based on enquiries made and an interview of the applicant by
the LIC’s development staff, have been provided.
 The sum for which one or more policies could be taken out under this scheme would
be limited to Rs. 2000.
 Policies will be issued only to persons aged 40 years and under.
 Insurance cover will be offered under a number of tables such as endowment

Assurance, Fixed Term (Marriage) Endowment, Educational annuity and Anticipated
Endowment.
 The maximum term of insurance will be 25 years and the maximum premium-
ceasing or maturity age 60 years.
 In the case of illiterate lives, a lien will apply, generally for one year.
 This scheme of extension of the non-medical business will come into force from 1st
January, 1961.
Page 31
‘ON THE SPOT POLICY’ TO ‘GREEN CHANNEL’
Addressing the officers and staff in Delhi Division spot-policy camps towards the
end of last year, the then Chairman pointed out that, although the southern Zone had
started the experiment of issuing spot-policies in respect of non-medical business
secured during the field publicity van’s operations, it was the northern Zone which had
advanced the technique. It was they who had made it an all-round method of issuing
policies to eligible lives who presented themselves for insurance (following upon new
business drivers by the field force) ready with the payment of the necessary premium.
“This kind of issuing of spot-policies,” he said,” has not been tried by any
insurance institution in the world. We are the first to do so, and if we can continue to
make a success of it, the innovation will not only rebound to our credit, but will help the
millions of our people all over the country who would like to get their policies as soon as
they pay their premiums.”
In dealing with those who have no experience of baking or insurance – with those
who part with money only when the object of their purchase can be placed within their
hands – it is necessary to root out the suspicion which delays in delivery may tent to
foster.
Ordinarily, proposals, when received, are forwarded through a Branch Office,

examined there and then sent on to the Divisional Office for issue of the policy. Despite
the highest efficiency, a week, and often more, may elapse before the policy reaches the
hands of the assured. Then again, shortcomings and omissions detected in the papers
cannot be rectified on the spot. Any omission or negligence – whether by the party, the
agent or the doctor – therefore, leads to references being made and incidental
correspondence, which results in further delays.
With the spot – policy, you have the entire team present on the spot – everyone
working with a team spirit and at high pressure because the reality of achievement is
there to be seen, believed and understood. The gents and field staff are there, the medical
examiner is there, the understanding officer if there and so are those who prepare the
Page 32
policies on their machines, which are ready at hand. In consequence, anyone who is
found eligible and pays his premium in a matter of minutes. It can, therefore, be said that
by this method, we have achieved a great revolution in the life insurance business. It is
an experiment which, if it develops and improves, will be found worthy of emulation by
other countries that have a considerable rural population, and that face problems similar
to the ones we are trying to overcome rapidly.
The Mobile Team
The bhajan mandalis or staff of the Field Publicity Van has done their job. The
agents, field officers and even development officials have moved about ceaselessly,
explanation, advising and guiding. The likely prospects on the spot are being gathered
together. Some even spend the night at the centre where the mobile team will be working
from early morning on the following day. Others will return from nearby villages with te
money to be paid by way of premium.
The mobile team, for examining the proposal papers, doing the underwriting and
issue of policies, consists of a divisional team manned by a superintendent with
underwriting powers up to Rs. 10, 000; two assistants for scrutiny and underwriting the
policies, allotting policy numbers and stamping, plus a typist for typing the policy-
bonds, envelopes, etc. the divisional team is assisted by branch staff comprising two
assistants for registration of proposals, receiving of premiums, calculating and checking
the premiums and issuing if the first premium receipts. The agents and field staff see to
the paper completion of all proposal papers and the medical examiner conducts
examinations where required. It is truly a mobile team, active, alert and attentive.
The satisfaction of the policyholders as they leave policy in hand is one of the
immediate rewards. The first ‘on-the-spot-policies’ campaign was launched by the
Northern Zone on 15th August 1961 in Simple, place in Chandigarh Division, where 44
policies assuring a sum of Rs. 2.10 lac were issued. This was followed by another drive
at larsauli by the same Branch where 100 policies assuring a sum of Rs. 5.32 lac were
issued.
Page 33
The future potentialities of this scheme are vast. With the decentralization of
underwriting in some branches and by creating more mobile underwriting units, the
corporation is planning to write a fair portion of its new business for 1962 under this
scheme. When this is achieved, nationalized life insurance can claim to have brought the
service of insurance closer to the assured and by a method which has never been used
anywhere else in the world.
Fast forward
Technology has enabled LIC today to realize its evdeavour of ‘On the spot
policies’ on a mass scale and as a matter of routine process-reengineering and the ‘Green
Channel’ was born as one of the outcomes. The ‘Green Channel’ is an improved New
Business module which allows issuance of instant policies. Just take a look at how the
Green Channel functions and the Policy Bond is delivered across the counter:
o The Proposer or his Agent brings the proposal to NB section and it is registered.
o The proposal is underwritten and if it is acceptable, a decision is recorded.
o Premium quotation is provided for payment.
o Actual premium is said at the counter, policy number is allotted and premium
receipt is issued, thereby avoiding the proposal deposit stage.
o Policy Bond is printed and issued on the spot.
Page 34
CHANGING GEOGRAPHY OF GLOBAL BUSINESS
Flash – back (1959)
Many insurance companies of Indian origin were operating in foreign countries

before the appointed day, mainly in British Easted Africa, Pakistan, Burma, Ceylon and
Malaya. Some companies also wrote business in Aden, Fiji, Mauritius, Hong Kong,
Indonesia, British West Indies and miscellaneous small centers. The organization
differed from the same company; it differed from one country to another.
On the one hand, hand, some companies maintained full-fledged branch offices,
which issued acceptance letters and policies and attended to most of the serving locally,
and at the other extreme, there were stray agents working in various territories on behalf
of a few companies which did not maintain any office outside India. Such agents used to
send the proposals to the head office in India all the work was attended to at the work
was attended to at the head office, except, perhaps, collection of premium, for which
arrangements were sometimes made local banks. Many of the companies had Chief
Agents for certain territories, but the status and caliber of these Chief Agents differed
vary widely. All in all, the field organization of India insurers in foreign countries was
far from uniform and first task was to build up a homogenous organization out of these
diverse elements.
Having regard to the difficulties, particularly in respect of foreign exchange, it was

decided to discontinue writing new business in Pakistan, Burma, Ceylon, Indonesia and
South Africa. In some other places where formerly business was done through stray
agents or without proper servicing arrangements, and where it was not economical to
maintain our own office, we decided not to entertain any new business. This left us with
British East Africa, Malaya and Singapore, Fiji, Mauritius, Aden and Hong Kong, where
we write new business at present.
It will be seen that the area of our operations I much more restricted now than it
was before nationalization. To some extent, this accounts for the fall in foreign although
that is not the only reason. In 1955, the total foreign business written by Indian
Page 35
companies was of the order of Rs. 20 crores. Of this almost Rs. 10 crores came from
Burma, Pakistan and Ceylon. The territories where we operate at present accounted for
Rs. 10 crores of business was Rs. 5.40 crores in 1957 and Rs.5.85 crores in 1958. This
fall can be explained by the dislocation that took place immediately after nationalization.
Problems of integration and field organization of the various units took considerable
time and it became necessary to send trained officers from India in order to reorganize
the branches.
Then again, there were problems of introducing standard salary scales fitting in, transfer
of assets and liabilities and so on, which did not permit us to devote enough attention to
development. Our basic problems have now been solved and it should be possible to
increase our business considerably in 1959. We have not got into our stride and we can
look forward to steady progress in future.
Fast Forward (2005)
The geography of LIC’s foreign operations contracted as demanded in accordance

with the corporation directly operates through its Branch offices in Mauritius at Port
Louis, Fiji at Suva and Laukota and United Kingdom at Wembley. The Overseas
subsidiary of the Corporation, LIC (International) BSC, which was established in
Bahrain in 1989, caters to the Life Insurance needs of NRIs in the Gulf by issuing
policies in US Dollars. The company operates in the states of Bahrain, Saudi Arabia,
Kuwait and UAE through Chief Agents and through a broker arrangement in Qatar.
The company set up its first full fledged branch office in Muscat, Oman from 23rd
December, 2003. With this the company has achieved its cherished objectives of
spreading its wings to all the six GCC countries. With the opening up of the insurance
sector in the Kingdom of Saudi Arabia, the Corporation has applied for a license for the
setting up of a Joint venture Company in Saudi Arabia.
LIC (Nepal) Ltd., a joint venture between the LIC of India and M/s. Vishal Group
of companies in the Kingdom of Nepal was launched on 3rd December, 2001. The LIC
Page 36
(lanka) Ltd., a joint venture company between LIC of India and M/s Barleet Group of
Co. Ltd. was launched on 1st March, 2003.
The latest among the overseas enterprises is a new joint venture company, LIC
(Mauritius) Offshore Ltd., which is likely to commence its operations shortly. The
government agreed to part with 50 percent of the dividend income it received from LIC
for 2004-05 to fund its global ambitions. Armed with the Rs 270 crores corpus that the
government has provided for LIC’s foreign forays, the corporation is exploring the
possibilities of entering the markets of Australia, New Zealand and Egypt for expanding
its overseas operations.
Page 37
A BOUQUET OF UNIT LINKED PLANS
Unit – linked Insurance Plan
Shri Y.B. Chavan, Union Finance Minister, inaugurated, on September 10, the
unit-linked Insurance Plan at the Bhulabhai Desai Auditorium, Bombay, which was
packed to capacity. The function, which had been organized by the Unit Trust of India,
proved to be a spectacular success.
Speaking on the occasion, Shri Y.B.Chavan said that the Plan carried the unit
savings scheme a step further by providing insurance cover also on the life of the saver
so that the savings target envisaged by a person during a period of ten years would be
available to his dependants in the event of death. It marked a new stage of co-operative
approach by two premier national organizations for mobilization of resources.
Shri P.S.Bhatt, Chairman, UTI, in his welcome speech, explained the salient
features of the Unit-linked Insurance Plan which, he hoped would provide a further
incentive for savings through units.
Shri S.Jagannathan, Governor of the reserve Bank, said that the UTI and the LIC
were complementary to each other. Compared to the Progress achieved by similar
institutes abroad, they had still a long way to go, he felt.
Shri T.A. Pai, Chairman, LIC, stressed that the concept of insurance should be
shifted from classes to masses. The LIC he said, stood 19th amongst the insurers in the
world on the basis of business in force. It was LIC’s endeavour to be the leading insurer
in the world on the criterion of maximum lives insured. He added that the Group
Insurance Plans recently introduced as also the Deposit-linked and Unit-linked Plans
would considerably help to extend insurance in the country and mobilize savings. The
Plan, Shri Pai stated, was the joint venture of the LIC and it was expected to achieve
significant results with the country’s further economic growth. The Plan would take the
message of insurance to many more people, besides being an incentive for regular
savings through units, he concluded.
Page 38
A vote of thanks was proposed by Shri B. D. Deshmukh, Executive Director, and

Unit Trust.
It would be of interest to add here that the Unit-linked Insurance Plan is available
to a Unit holder who decides to save with the Unit Trust of India. The salient features of
the Scheme are:
One has to undertake to save between Rs. 3, 000 and Rs. 12, 000 over a period of
ten years through regular yearly/half-yearly contributions.
Unit Trust pays a small premium to LIC for life insurance cover (between 2.6 per
cent and 8.95 per cent of the contribution depending upon age). Much the greater part is
invested in units. What is more, after the first seven years there is no insurance premium
payable and the entire contribution is invested in units. The dividend earned on units is
automatically reinvested in more units. Thus, in ten years, the savings will have
multiplied at a compound rate.
The life insurance cover is the difference between the contracted amount and the
contributions already made. You are fully covered as soon as the first contribution is
accepted.
For joining the Plan, the unit-holder’s age must be at least 18 and not more than 45
and he should be able to make a declaration of good health.
Fast Forward (2001-2005)
Bima-Plus, Future plus, Jeevan-Plus
In the current millennium LIC has introduced till date three unit linked life
insurance plans to satisfy the needs of discerning customers who look for attractive
returns, risk cover, flexibility and liquidity all packed together. Introduced on 12th
February, 2001, ‘Bima Plus’ was the first modern day unit linked plan of LIC. Slowly
but surely the sales of Bima – Plus picked up and by the end of the financial year 2003-
04 it created a record in volume of sales. One of the highlights of LI’C business
Page 39
performance in 2003-04 was undoubtedly the astounding success in the sale of Bima
Plus.
The sales of Bima Plus that picked up during the last few months of the financial
year managed to get 1.70 lac policies with a premium collection of over Rs.373 crores as
compared to Rs.1.5 crores in 2002-03. South Zone led the way by occupying top
position in the sale of Bima Plus in 2003-04 and Lukhnow Division blazed the path on
all counts in the sale of Bima Plus by completing 24, 056 policies, followed by
Coimbatore with 14, 338 policies and Cuttack with 6, 573 policies. Bima Plus stands
withdrawn as on date.
‘Future Plus’, LIC’s unit linked pension plan, earned over Rs. 2000 crores within a
month of its launch on 5th March, 2005. LIC launched its latest unit linked plan, LIC’s
Jeeavan Plus, in October 2005. It is a unit linked Whole Life plan which offers
investment cum insurance life.
A customer can also choose the level of cover within some limits; which will
depend on whether the policy is a Single premium or regular premium contract and on
the level of premium he agrees to pay. The allocated premiums will be applied to
purchase units as per the Fund type chosen. The value of the units in the Unit Fund may
increase or decrease, depending on the investment return of the assets representing the
chosen Fund. The minimum annual premium will be Rs. 5, 000/- increasing thereafter in
multiples of Rs.1, 000/-. Alternatively, a single premium can be paid subject to a
minimum of Rs. 25, 000 and thereafter in multiples of Rs. 1, 000.
In the case of the death of the Life Assured when the cover is in full force, the
nominee will get the Sum Assured under the basic Plan together with the Bid Value of
units held in the Policyholder’s Unit Account. On the Life Assured serving the policy
anniversary on which the age nearer birthday is 100 years, an amount equal to the Bid
value of the units held in the Policyholder’s Unit Account is payable.
The Accident Benefit and the Critical illness Rider can be taken as optional Rider
benefits by paying an additional premium.
Page 40
The premiums allocated to purchase units are strictly invested pattern committed
in various fund types. The various types of fund and their investment pattern are Bond
Fund, Secured Fund, Balanced Fund and Growth Fund. The policyholder has the option
to choose any one of four funds. The other special features of this plan are Auto-cover
facility, Top-up (additional Premium), Switching, Minimum Guaranteed Growth rate
etc.
Page 41
A VISION IN ELEGANCE.
(Flash – back 1963).
‘Yogekshema’, the new imposing building for the central office of the Life
insurance Corporation of India, gives the impression of the giant widescreen. Resting on
an intricately woven stone foundation and giving a dual impression of strength and
elegance, this latest edition to Bombay’s foreshore Road occupies one of the very
prominent sites in the southern part of Bombay city, the busy commercial sector. It is a
clear crisp morning – but how different it all is out at foreshore road. After days, and
even nights, of feverish activity – giving the last moment touches which so massive an
edifice a the new central office building calls for – there is quiet, calm and order and a
hush of expectancy… for today, December 26, 1963, many will witness the opening of
‘Yogekshema’ by the prime minister himself.
The union finance minister, shri T.T. krishnamachari said, “Security cannot be had
in a small umbrella – a lady’s umbrella might be very pretty one to look at, but it does
not give the necessary protection. The protection which life insurance has to afford to the
people of the country has to be a large one and, only a big umbrella can give the entire
protection. And so, it is inevitable that an organization like this which aims at security
for 450 million of people in a country which is almost a sub-continent, is a monolithic
organization.”
The Prime minister, with the silver key that is handed to him, opens the doors of
‘Yogekshema’ amidst thunderous applause, so that the LIC can move to its home.
Declining a mute appeal to speak from his seat, Shri Jawaharlal Nehru goes to the
speaker’s stand and makes his opening remarks:
“I am very happy to inaugurate this great building. However, I think I am not a

very suitable person to perform the ceremony as I have never insured in my life” – This
sets the audience laughing. Explaining why he never insured although he recognizes its
value, he says, because most of his life was spent in conflict and it did not strike him to
insure himself and safeguard his personal future. The future for him was that the
Page 42
Independence of India should be assured. “Nevertheless, I am fully aware of the security

that life insurance provides way”, he added.
“This Corporation has a large family of people serving in it and I hope it will live
as a happy family – a contented family. A feeling of contentment is so necessary for
such an organization and I wish them a successful future as in the past. I hope that the
scope will grow ever wider and will cover a greater part of our population.”
Page 43
INFORMATION TECHNOLGY AND LIC
LIC has been one of the pioneering organizations in India who introduced the
leverage of Information Technology in servicing and in their business. Data pertaining to
almost 10 crores policies is being held on computers in LIC. We have gone in for
relevant and appropriate technology over-the-years.
In 1964, saw the introduction of computers in LIC. Unit Record Machines

introduced in late 1950’s were phased out in 1980’s and replaced by Microprocessors
based computers in Branch and Divisional Offices for Back Office Computerization.
Standardization of Hardware and Software commenced in 1990’s. Standard Computer
Packages were developed and implemented for Ordinary and Salary Savings Scheme
(SSS) Policies.
FRONT END OPERATIONS
With a view to enhancing customer responsiveness and services, in July 1995, LIC
started a drive of On Line Service to Policyholders and Agents through Computer. This
on line service enabled policyholders to receive immediate policy status report, prompt
acceptance of their premium and get Revival Quotation, Loan Quotation on demand.
Incorporating change of address can be done on line. Quicker completion of proposals
and dispatch of policy documents have become a reality. All our 2048 branches across
the country have been covered under front-end operations. Thus all our 100 divisional
offices have achieved the distinction of 100% branch computerization. New payment
related Modules pertaining to both ordinary & SSS policies have been added to the Front
End Package catering to Loan, Claims and Development Officers’ Appraisal. All these
modules help to reduce time-lag and ensure accuracy.
Page 44
METRO AREA NETWORK
A Metropolitan Area Network, connecting 74 branches in Mumbai was

commissioned in November, 1997, enabling policyholders in Mumbai to pay their
Premium or get their Status Report, Surrender Value Quotation, Loan Quotation etc.
from ANY Branch in the city. The System has been working successfully. More than
10,000 transactions are carried out over this Network on any given working day. Such
Networks have been implemented in other cities-also.
WIDE AREA NETWORK
All 7 Zonal Offices and all the MAN centers are connected through a Wide Area
Network (WAN). This will enable a customer to view his policy data and pay premium
from any branch of any MAN city. As at November 2005, we have 91 centers in India
with more than 2035 branches networked under-WAN.
INTERACTIVE VOICE RESPONSE SYSTEMS (IVRS)
IVRS has already been made functional in 59 centers all over the country. This
would enable customers to ring up LIC and receive information (e.g. next premium due,
Status, Loan Amount, and Maturity payment due, Accumulated Bonus etc.) about their
policies on the telephone.
LIC ON THE INTERNET
Our Internet site is an information bank. We have displayed information about

LIC & its offices. Efforts are on to upgrade our web site to make it dynamic and
interactive. The addresses/e-mail Ids of Zonal Offices, Zonal Training Centers,
Management Development Center, Overseas Branches, Divisional Offices and also all
Branch Offices with a view to speed up the communication-process.
Page 45
PAYMENT OF PREMIUM AND POLICY STATUS ON INTERNET

(You have to register for these services).
LIC has given its policyholders a unique facility to pay premiums through Internet
absolutely free and also view their policy details on Internet premium payments. There
are 11 service providers with whom L I C has signed the agreement to provide this
service.
INFORMATION KIOSKS
We have set up 150 Interactive Touch screen based Multimedia KIOSKS in prime
locations in metros and some major cities for dissemination information to general
public on our products and services. These KIOSKS are enabling to provide policy
details and accept premium payments.
INFORMATION CENTRES
We have also set up 8 call centers, manned by skilled employees to provide you
with information about our Products, Policy Services, Branch addresses and other
organizational information.
Page 46
LIC’s Golden Jubilee Policy - Bima Gold (Plan No. 174)
It has been decided to introduce LIC’s Golden Jubilee Policy - Bima Gold (Plan
no.174) with effect from 1st September, 2005. It is a closed ended plan and shall be
available for sale up to 31st March, 2006.
1. INTRODUCTION:
This is a money back type plan where total premiums paid under the policy shall be paid
back to the policyholder in installments at the specified durations in case of survival and
Sum Assured shall be paid in case of death during the term of the policy irrespective of
whether or not any survival benefits have been-paid-earlier.
2. BENEFITS:
Death Benefit: On death of the Life Assured during the term of the policy, an amount
equal to Sum Assured under the Basic Plan shall be payable provided the life cover is in
force.
Survival Benefit: In case the life assured is surviving to the end of the specified
durations, the following benefits shall be payable provided the policy is-in-full-force.
For policy term 12 years : 15% of the Sum Assured under Basic Plan at the
end of each 4th & 8th policy year
end of each 4th, 8th &12th policy year

end of each 4th, 8th, 12th & 16th policy year
Page 47
Maturity Benefit: Total amount of premiums (excluding extra/optional rider premiums,

if any) paid plus Loyalty Additions, if any, less the amount of survival benefits paid
earlier, shall be payable in case of Life Assured surviving to the end of the term provided
the policy is in full force.
3. LOYALTY ADDITIONS:
This is a with profits Plan and the policy shall participate in the profits of the
Corporation’s with-profits assurance business. The policy shall, however, be eligible to a
share of profits in the form of Loyalty Addition (one time) only payable on maturity. On
the Life Assured surviving the stipulated date of maturity, the policy may be eligible for
payment of Loyalty Addition, if any, depending upon the experience of the Corporation
at such rate and on such terms as may be declared by the Corporation.
4. OPTIONS:
Accident Benefit Rider shall be available as an optional benefit for a premium at the rate
of Rs.1 per thousand Accident Benefit Rider Sum Assured. Accident Benefit Rider shall
be available for an amount not exceeding the Sum Assured under the Basic Plan subject
to an overall limit of Rs.50 lakh taking all existing policies of the Life Assured under
individual as well as group schemes including policies with in-built accident benefit
taken with Life Insurance Corporation of India and other insurance companies and the
Accident Benefit Rider Sum Assured under the new proposal into consideration.
5. AUTO-COVER:
If at least two full years’ premiums have been paid in respect of this policy, any
subsequent premium is not duly paid, full death cover shall continue for a period of
two years from the date of First Unpaid Premium (FUP). This period of 2 years from
FUP shall be called Auto - Cover period.
Page 48
During the Auto-Cover period, one or more installments of premiums can be paid
along with interest without any revival requirements.
On revival or payment of part/full arrears of premiums during Auto-Cover period,

the date of FUP will shift and accordingly the Auto-Cover facility shall again be
available for two years from the date of revised FUP.
6. LOAN:
Loan facility is available under this plan after the policy acquires paid-up value. The rate
of interest to be charged for loan amount would be determined from time to time by the
Corporation. Presently the rate of interest is 9% p.a.
Payable half-yearly.
7. REBATES / INCENTIVES FOR HIGH SUM ASSURED:
Mode Rebate / Extra:

Rebates are available at the following rates:
Yearly mode : 2% of tabular premium

Half-yearly mode : 1% of tabular premium
Quarterly and SSS mode : NIL
Monthly mode : 5% extra on tabular premium
High Sum Assured Rebates:

Less than Rs. 50,000 : NIL
Rs. 50,000 and Less than Rs.1 Lac : Rs. 2.5 per thousand Sum Assured
Rs. 1 Lac and Less than Rs.2 Lac : Rs. 7.5 per thousand Sum Assured
Rs. 2 Lac and above : Rs.10 per thousand Sum Assured.
Page 49
8. CEIS REBATE:
The rebate for eligible employees of the Corporation shall be @ 10% of the Tabular
Premium for the basic plan.
9. MODES OF PREMIUM PAYMENTS:
Premiums are payable regularly during the policy term with modes of premium payment
Yearly, Half-Yearly, Quarterly, Monthly or through salary deductions.
10. ELIGIBILITY CONDITIONS AND RESTRICTIONS:
Minimum age at entry : 14 years (completed)

Maximum age at entry : 63 years nearer birthday
Maximum age at maturity : 75 years nearer birthday
Term : 12, 16 or 20 years.
Minimum Sum Assured : Rs. 40,000 /-
Maximum Sum assured : No limit
Sum Assured will be in multiples of Rs.5,000 /- only.
11. PREMIUM RATES:

As enclosed in Annexure 1.
12. EXTRA PREMIUM RATES:

As enclosed in Annexure 2.
13. COMMISSION FOR AGENTS / CORPORATE AGENTS /
BROKERS AND D.O. CREDIT:

Commission rates (as percentage of premium) payable to Agents, Corporate Agents
during the term are as under:
1st Year, 2nd and 3rd Year Renewal 15%, 7.5%, 5%.
Page 50
Bonus Commission: 40% of 1st year commission.

Commission rates (as percentage of premium) payable to Brokers during the term are as
under:
1st Year Renewal
20% 5%
No Bonus Commission shall be paid to the Brokers.
Development Officer's Credit:

For term 12 years : 60%
For terms 16 and 20 years : 100%
14. UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS:
Same as for Endowment Plan.
15. PAID-UP & SURRENDER VALUES (GSV, SSV):
If after at least three full years’ premiums have been paid in respect of this policy, any
subsequent premium be not duly paid, this policy shall not be wholly void after the expiry
of two years Auto Cover Period from the due date of First Unpaid Premium, but shall
subsist as a paid up policy for an amount equal to the total premiums paid (excluding any
extra/optional premium) less the survival benefits paid earlier, if any. This amount shall be
called as Paid up Value. This paid up value shall be payable on the date of maturity or at
Life Assurer’s prior death. No survival benefit shall be payable under paid up policies. The
policy thereafter shall be free from all liabilities for payment of the within mentioned
premiums.
The Guaranteed Surrender Value shall be available after completion of at least three
policy years and at least three full years’ premiums have been paid. The Guaranteed
Surrender Value is equal to 30 per cent of the total amount of premiums paid excluding the
premiums for the first policy year, all extra premiums paid, the premiums paid for
Accident Benefit Rider and the amount of Survival benefits paid earlier.
Special Surrender Value will be calculated using the surrender value factors as applicable
Page 51
in the case of Endowment Plan and paid-up value as defined above.Surrender value will
not be available on Accident Benefit Rider Option premiums.
16. GRACE PERIOD FOR PAYMENT OF PREMIUM:
A grace period of one month but not less than 30 days will be allowed for payment of
yearly or half yearly or quarterly premiums and 15 days for monthly premiums.
17. REVIVALS OR REINSTATEMENTS OF LAPSED POLICIES:
If the Policy has lapsed, it may be revived during the lifetime of the life assured, but within
a period of 5 years from the date of first unpaid premium and before the date of maturity,
on submission of proof of continued insurability to the satisfaction of the Corporation and
the payment of all the arrears of premium together with interest (compounding half-yearly)
at such rate as may be prevailing at the time of the payment. The Corporation reserves the
right to accept at original terms or accept at revised terms or decline the revival of
discontinued policy. The revival of the discontinued policy shall take effect only after the
same is approved by the Corporation and is specifically communicated to the Life
Assured. Revival of Accident Benefit Rider will only be considered along with revival of
the Basic Policy, and not in isolation.
18. NORMAL REQUIREMENTS FOR CLAIM:
The normal documents which the claimant shall submit while lodging the claim in case of
death of the policyholder shall be the claim forms, as prescribed by the Corporation,
accompanied with original policy document, proof of title, proof of death, proof of
accident/disability, medical treatment prior to death, employer’s certificate, whichever is
applicable, to the satisfaction of the Corporation. If the age is not admitted under the
policy, the proof of age of the Life Assured shall also be submitted.
Page 52
19. COOLING-OFF PERIOD:
If a policy holder is not satisfied with the “Terms and Conditions” of the policy, he/she
may return the policy to the Corporation within 15 days from the date of receipt of the
policy.
20. BACK DATING INTEREST:
The policies can be dated back within the financial year, as usual. Back- dating interest
will be charged at the prevailing rate at the time of completion of policy for dating back in
excess of one month. The interest shall be charged even where the policy is back dated to a
lean month.
21. POLICY STAMPING:
Policy stamping charges will be 20 paise per thousand Sum Assured under the Basic Plan.
22. REINSURANCE:
Normal procedure for reinsurance will apply.
23. ASSIGNMENTS / NOMINATIONS:
Notice of assignment or change of nomination should be submitted for registration to the

office of the Corporation, where this policy is serviced. In registering an assignment or
nomination the Corporation does not accept any responsibility or express any opinion as to
its validity or legal effect.
24. PROPOSAL FORM:
Proposal Form No. 300 or 340 shall be used for the plan.
Page 53
LIC AIMS Rs 5,000cr NEW PREMIUM VIA BANK TIE-UPS

ALTERNATE CHANNELS.
New Delhi, Aug 17 : Life Insurance Corporation (LIC) today said it targets to increase
its new business income to Rs 5,000 crores in the current fiscal through alternate
channels and bank tie-ups from Rs 1,140 crores generated last fiscal.
''Last year, we had a first year premium of Rs 1,140 crores from bancassurance and
alternate channels...we are targeting Rs 5,000 crores in this fiscal,'' LIC Executive
Director A K Sahoo told reporters on the sidelines of a conference here.
He said the company has tied up with 39 banks and 510 corporate agents,
besides having 125 insurance brokers.
Mr. Sahoo said LIC would focus on increasing its number of partnership tie-ups and
bancassurance network to distribute its products.
He said the company, which had sold 3.88 crores policies last year, targets to sell about
4.66 crores policies in the current year.
The company's total first-year premium during last year stood at Rs 70,891 crores,
witnessing a growth of 34 per cent over the previous fiscal.
LIC today tied up with a financial services distribution company Net Ambit, which has
set a target of generating Rs 500 crores business over next three years for the life insurer.
Net Ambit will hire 700 people to sell various products such as insurance plans, pension
plans, unit plans, special plans and group schemes in tier 2/3/4 towns.
Page 54
LIC GETS 79pc PREMIUM MARKET SHARE
Mumbai, Sept 29: Life Insurance Corporation of India (LIC), the largest insurer in the
world with more than 28 crores customers, has got 79pc new premium market share in
August, the company said on Wednesday.
In the figures published by IRDA for the month of August, the Corporation had a
79.21pc market share in the New Premium Income. As against this, all the 22 private
insurance companies put together could muster only 20.79pc.
The Corporation could not have expected a better birthday gift from its customers. It
may be mentioned that LIC is celebrating its 54th anniversary
this month.
During the year, its market share in New Premium Income has risen from 64.86pc
as on March 31 to 74.09pc as on August 31, showing a growth rate of 87.80pc and
covering more than 1.22 crores new lives.
Its two ULIP policies, viz. Market Plus I (Pension Plan) and Money Plus I (ULIP)
have met with a huge public response. In Pension and Group Schemes New Premium,
the Corporation's market share has gone up to 85.81pc.
With the entry of the new ULIP regime, LIC is the only life insurer to have
introduced a Unit Linked Pension Product "Pension Plus" on September 2 itself and
thereafter the Unit Linked Insurance Plan "Endowment Plus" on September 20, which
has again met with a huge public response, said the company.
Page 55
LIC HOUSING FINANCE
1989
 The Company was incorporated on 19th June as a public limited company. It was
promoted by LIC of India. The Company provides housing loans to individuals,
builders, development authorities, employer’s organization etc.
 The Company has started various schemes: Griha Prakash a general scheme,
Griha Tara under which it accepts only Bima Sandesh Plan as Life Insurance
Corporation, Griha Shobha for NRIs and Griha Lakshmi for people to have a
second house.
1994
 3, 00, 57,900 No. of equity shares were issued at a premium of Rs 50 per share
through public issue on 15th November 1994. The allotment was as follows; 10,
82,000 shares to LIC on firm allotment basis and the balance 189,75,900 shares
to public (all were taken up).
1996
 The Company has decided to carry out fund based and one-fund based
activities, viz., debt securitization, lease and hire purchase, renting of properties
and giving guarantee to co-operate bodies.
2000
 CRISIL has assigned a AAA rating to the issue of mortgage backed pass
through certificate backed by mortgages originated by the company.
2001
 The Company has launched its new scheme, "Griha Vikas".
2002
 LIC Housing Finance Ltd has informed BSE that the Company has forfeited
1,25,300 equity shares due to nonpayment of allotment/call monies.
Page 56
 LIC Housing Finance has approved for the takeover of Individual Housing
loan portfolio of GLFL Housing Finance.
 Around 25 investors subscribed to the issue of confidentially placed

debentures for a total amount of Rs.392 crores of LIC Housing Finance Ltd.
 LIC Housing Finance Ltd has decreased its interest rates on housing loans by
25-50 basis points.
 Financial Institutions have increased their stake from 0.01% to 1.96% and
Mutual Fund companies have increased their stake from
0.35% to 1.06% in LIC Housing Finance.
 LIC Housing Finance Ltd has decreased the floating rate of interest under
individual loan scheme to 9.5% from 11%.
 LIC Housing Finance signed a deed of assignment to take over individual

housing loan portfolio of Citibank N A.
 UTI and IFCI have been removed from the list of promoters of LIC Housing
Finance.
2003
 LIC Housing Finance has unveiled a new project for elderly people called
'LIC HFL Care Homes'.
 LIC Housing Finance Ltd has sanctioned 84,126 loans worth Rs.3265.78cr
and disbursed 76,663 loans worth Rs.2941.24cr under its
Individual Loan Scheme.
 LICHFL has mobilized Rs.280cr for 15 years at 7% rate of interest through

private placement.
Page 57
 LIC Housing Finance Ltd has informed that the shares of the company have
been delisted from The Stock Exchange - Ahmedabad December 08, 2003.
2004
 Merill Lynch Capitat acquires LIC housing stake of 0.39%
 Templeton Asset Management buys 37,52,362 equity shares, representing
5.01% of LIC Housing's total paid-up capital of Rs 74.9 crores
 LIC Housing Finance Ltd has informed that the shares of the Company have
been voluntarily delisted from the Delhi Stock Exchange January-23,-2004.
 LIC Housing Finance shares delisted from Madras Stock Exchange
 Mr. D Krishnan appointed as Chief Executive Officer
 LIC Housing Finance Ltd's (LICHFL) one - crore global depository receipts
(GDR) issue opened on August 27.
 Lists its maiden global offerings worth $29.85 million at the

Luxembourg Stock Exchange successfully.
 Introduces new product that starts as a fixed rate loan but contains an option
to convert it to a floating rate loan at the end of five years, at the
then prevailing rate.
2005
 Delist from The Calcutta Stock Exchange Association Ltd (CSE) with effect
from December 09, 2004.
 LIC Housing Finance launches loan product that eliminates the requirement of
charge on house financed.
 Goldman Sachs acquires share in LICHF
Page 58
2007
 LIC Housing Finance to launch FD scheme
 LIC Housing Finance to enter into reverse mortgage product

2008
 LIC Housing Finance Ltd has informed that the Board has appointed the
following persons as Directors on the Board of the Company on May 20, 2008:
 Name of the Director: Shri. D K Malhotra for the Position of: Managing
Director Change effective from: May 20, 2008.
 LIC Housing Finance Ltd has informed that the Board of Directors of the
Company has appointed following person as Director on the Board of the
Company on July 01, 2008.
 Name of the Director : Shri A S Narayanamoorthy
 For the position of : Additional Director
 Change effective from: July 02, 2008.
LIC Housing Finance launches Reverse Mortgage for senior citizens
2009
 LIC Housing Finance cut interest rates for new loans by 0.5% where for
customers opting for floating rate loans between Rs 30 lac and Rs 75 lac, the new
rates will be 8.755 against 9.25%.
Page 59
LIC HOUSING EYING BANKING AND OTHER
FINANCIAL SERVICES.
Chennai, Sep 24: Housing mortgage lender LIC Housing Finance is keen to diversify
into various financial services, including banking, a top company official said Friday.
"We have applied for a banking license. We are planning to float one subsidiary a
year for the next five years," R.R. Nair, Director and Chief
executive, told reporters here.
He said the company is looking at financial services, venture capital fund, property
service development and others.
"The company's Rs.500 crores venture capital fund is set to become operational next
month. We will participate in real estate projects," Nair said.
Speaking about LIC Housing's business, he said the company targets to disburse Rs.20,
000 crores as against Rs.14,853 crores logged the previous year.
Page 60
A STORY OF DEVELOPMENT AND DEDICATION
The Life Insurance Corporation of India has stepped into the much vaunted
Golden Jubilee year from 1st September, 2005 and the yearlong celebrations are already
on with an accent on customers’ loyalty and reward programmes, introduction of new
products, introduction of new technological applications and organizational restructuring
aimed at market penetration and customers’ convenience, employees’ competence
building and skill up gradation courses with a view to retaining the existing customers
and wooing energetic and trendy youngsters. The Golden jubilee celebrations were
flagged off by Honorable Prime Minister Shri Manmohan Singh himself in the presence
of Honorable Finance Minister Shri P. Chidambaram on 01/09/2005 at luhknow. Both
the Prime Minister and the Finance Minister spoke highly of the tremendous contribution
made by the LIC ever since its inception.
The ordinance nationalizing 245 life insurance companies was signed by the
President of India on 19th January, 1956. Since then LIC has traversed a long distance
surpassing many milestones and greeting numerous new landmarks along the way. LIC
is perhaps the single largest financial institution with a total life fund of over Rs. 3,85,
000/- crores, 17 crores policies and a total annual income of Rs. 1,07, 969/- crores on
31st March, 2005. There was an accretion of Rs. 64, 000/- crores to the life fund after
meeting the claim liabilities, which is nearly 4% of the GDP of the country. During the
year 2004-2005, LIC settled a staggering 115 lacs claims, maturity and death, with a
pay-out of nearly Rs. 25, 000/- crores.
The founding fathers of LIC both Dr. C.D.Deshmukh, the then Finance Minister
and Pt. Jawaharlal Nehru, the then Prime Minister, had conceived and dreamt that LIC
would play a pivotal role in giving an impetus to the economic development of the
country by mobilizing the savings of the people for contributing to the five year plans of
the country. LIC would also provide financial and social to the people throughout the
country. On both these counts, LIC has very well served the purpose by its immense
contribution to the five year plans and also by spreading the message of life insurance to
Page 61
every nook and corner of the country. In the tenth five year plan alone the contribution
was over Rs. 1, 80,000 crores.
It is quite evident that LIC started the journey at a very difficult time when
awareness of life insurance was almost non-existent. It is with the untiring and dedicated
efforts of all those who served it at different points of time and in different positions that
it has now become the most popular and visible service brand in the country. It is a
matter of great pride that LIC has become synonymous with life insurance and it is used
as a generic term for life insurance by the common man.
The growth of LIC over the years has been multi-faceted. Geographically, it is
established in every nook and corner of the country. It has its operations beyond the
boundaries of the country. LIC has made notable contributions in the development of the
capital market which is so essential for the economic development of the country. Apart
from participating directly in the growth of the equity market of institutions such as the
National Stock Exchange, NCDEX, Stock Holding Corporation of India, Clearing
Corporation of India, IDBI Trusteeship Company, UTI, UTI Bank, LIC Mutual Fund,
LIC Housing Finance Corporation Ltd., National Insurance Academy, etc.
With the passage of the IRDA Act, 1999 and the opening up of the life insurance
sector in the year 2000 the life Insurance Industry completed a full circle i.e.,
nationalization of private companies and the opening up of the life insurance business to
private companies. It is unexceptionable that the policy decisions taken at a particular
point of time are meant to serve the purpose and interest of the country at a specific point
of time. In a dynamic world where changes take place constantly, the policy
requirements also undergo simultaneous changes and erstwhile goals become redundant
and obsolete, requiring complete change and restatement of objectives.
In the context of globalization and dismantling of all barriers, opening up of life

insurance sector has become an essential adjunct of the new economic policy of the
Government. It is quite gratifying to know that since the opening up of the life insurance
sector, LIC has shown unprecedented growth in every facet of its working such as new
Page 62
business growth, introduction of new products, adoption of new technology applications,

up gradation of manpower skills, marketing of insurance policies both in the urban and
rural areas, improvement in the customer services and improvement in investment
management. LIC has shown unprecedented resilience and tenacity in pursuing its
avowed objectives with vigor and alacrity.
It has been quick to adapt itself to the changing demands of the market economy
by pruning the existing product line which was not in sync with the market returns and
capitalizing on the opportunities in the equity and bonds market with active trading. It
was quite an effort to conform the existing balance sheet to new IRDA norms,
maintaining the solvency margin, retaining growth momentum and continue to be the
market leader. In a new environment, growth of new business is of paramount
importance. All these underscore the fact that the organization has been alive to the
market demands and it has well accepted the changes which will catapult it to a new
position of incomparable excellence and growth.
In a competitive environment, there is no room for rest of complacency. It is of

importance to state that despite the initial success of the organization, there is no respite
from the challenges to the organization in this fact growing life insurance market. The
greatest challenges to my mind will be:
 LIC needs to be more sensitive and pro-active towards customer-serving. The

quality of serving i.e. error-free and courteous service should give us the cutting
edge;
 The new generation which is exposed to the best international practices would be
brutally frank and unemotional. It would not compromise on anything and would
expect the same standard of servicing that is available anywhere. No longer can
would we expect any loyalty without meeting their expectations. In fact the
young and dynamic new generation has such high aspirations that they are keen
or they are prone to experimentations. At times they change the brand for the
Page 63
sake of change even when there is no deficiency in service. The challenge lies in
making feeling peeved or exasperated;
 In order to provide better services to the customers while it is essential to retain

strict financial accountability, it is necessary to provide a greater degree of
autonomy of operations. We need to empower individuals so that we are able to
harness their inherent potentiality. The workplace should active their thinking,
which is the cornerstone for innovations and original contribution;
 The organization has to transform itself to meet the demands of the changing
times by making creative use of its vast manpower. It has to constantly prove that
it has relevance in the current period.
 The product line needs to be monitored regularly which demands ingenuity I

approach, innovation and greater ground level contact with the people. The
policy returns to the customer are extremely critical in retaining the existing
customers and getting prospective customers. The investment environment is fast
changing and it requires new skills and knowledge to operate and earn in the
highly complex and technical investment market. In a deregulated open market
economy, new avenues of investment have to be constantly searched for and
tried. As a market leader we shall have to play our role in persuading the IRDA
to even change the existing rules/norms wherever required. It places an urgent
need for competence building of the investment team either by training or by
including new talents from the market. The HR policy may have to be given a re-
look if the talent is to be retained in the organization.
 Finally, the future growth of the Life Insurance Corporation of India will depend
not on its hallowed or revered past performance but on the unflinching
commitments of its people, who are required to be relentless and unswerving in
the pursuit of excellence and would have the resilience and tenacity to keep
going against all odds.
Page 64
The conscientious efforts to create awareness amongst all constituents of the

organization of its social obligation and responsibility to the society with emphasis on
usage of technology will make it possible to successfully meet the future challenges. No
doubt, challenges are going to be formidable but it is a matter for utmost satisfaction that
in the past to the Corporation has overcome innumerable hurdles and challenges and has
shown flexibility despite its gigantic size in adapting itself to the changing nuances of
time. If the past is any guide, the future is full of excitement and promise.
Page 65
FIFTY YEARS OF PROGRESS
The newspapers of 19th January, 1956 carried in one of their middle pages a
small news item stating that the then Finance Minister Dr. C. D. Deshmukh would
broadcast over the All India Radio that night at 8-45 P.M. None, not even the newsmen,
the financial pundits or the Insurance companies suspected that the speech was going to
reveal a measure which had a far reaching consequence on the economic horizon of the
country. Dr. Deshmukh announced in his broadcast that the president had issued an
ordinance earlier in the day taking over the management of the life insurance companies
in India as a prelude to nationalization of life insurance business.
Earlier to this a lot of preparatory work had to be done and that too within a tight
timeframe. This onerous task of preparing for the event fell on the shoulders of the
Controller of Insurance, Shri A. Rajagopaln. As a member of his staff during this period
I had the excitement of watching the manner in which he planned the entire operation
resulting in a takeover that was smooth and without any hitch.
The background in which the decision was taken to nationalize life insurance
business is set out in the speech of Shri Deshmukh. For a planned development of the
country’s economy, it was necessary to mobilize savings and utilize them to the best
advantage of the community. The rural sector was largely neglected and it was necessary
to extend insurance benefits far and wide, incidentally making a wider section of the
population to participate in the savings program and consequently in the economic
development of the country. The Government was therefore considering the
nationalization of life insurance business. As they were deliberating the matter, a few
cases of mismanagement of funds had occurred and this hastened the decision.
The LIC was established on 1st September, 1956 and in the words of the then
Finance Minister, it was another milestone on the road the country had chosen in order to
reach its goal of a socialistic pattern of society. I had the privilege to be associated with
this great institution almost from its inception till my retirement 20 years ago. It is with
great interest that I have been watching the Corporation grow from strength to strength.
Page 66
Prior to nationalization, there were as many as 245 companies transacting life

insurance business. Strange as it would seem today, then had branches only in 97 centers
and all of them were in urban areas. Soon after the LIC was established, it ensured that at
least one development officer with a band of agents was posted in each revenue block.
The network has been further widened over time with the result that the Corporation now
has 2048 branches spread all over the country.
Savings are the prime movers of a nation’s economic development. The LIC has
played a vital role in mobilizing savings. The Life Fund has from around Rs. 400 crores
at the time of nationalization to a figure of over Rs.3, 85, 000 crores. The growth is
phenomenal. From this, the vital role played by the LIC to help the capital formation of
the country can be readily imagined. By promoting social and industrial advancement, it
provides requisite infrastructure for development. Thus the growth of the Corporation
not only brings the much-needed security to individuals, it helps in the economic growth
of the nation and consequently leads to a better standard of living for the people.
I am happy that the Corporation has never rested on its laurels but has been
constantly introducing innovative schemes to fulfil its objectives of identifying the needs
of the policyholders and giving them better returns. Side by side, innovative schemes
were being developed to help the economically weaker sections of the population. As I
watch the success story of the LIC, I am proud that I was once associated with this
institution.
In this Golden Jubilee year, I have great pleasure in congratulating the Corporation
for its achievements and wish it more and more successes in the years to come.
Page 67
AWARDS AND ACCOLADES
Page 68
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Page 74
CONCLUSION
After overhauling the all situation that boosted a number of Pvt. Companies
associated with multinational in the Insurance Sector to give befitting competition to the
established behemoth LIC in public sector, we come at the conclusion that :
1. There is very tough competition among the private insurance companies on the level
of new trend of advertising to lull a major part of Customers.
2. LIC is not left behind in the present race of advertisement.
3. LIC has vast market and very firm grip on its traditional customers and monopoly of
life insurance products.
4. Bank assurance - that allows life insurers to leverage on the risk product through bank
network, was adopted by private players. But LIC was also not left behind as picking
up majority stake in the corporation Bank and large equity stake in the Oriental Bank
of Commerce.
5. IRDA is also playing very comprehensive role by regulating norms mandating to

private players in this sector, that increases the confidence level of the customers to
the private players.
Page 75
BIBLOGRAPHY
www.managementparadise.com
www.licindia.com
www.scribd.com
www.lifeinsurance.com
Book: - 50years of LIC (Yogekshema)
PROF: - H. S. OBEROI.
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T.Y.

BBI 50 GOLDEN YEARS OF LIC

“50 GOLDEN YEARS OF LIFE INSURANCE SECTOR”

UNDER THE GUIDANCE OF

PROF. PATRACIA PEREIRA

ST.ANDREWS COLLEGE OF ARTS, COMMERCE,

I, UPENDRA BHAWARKAR, ROLL NO.8261student of St. Andrews College,

Stamp of college signature of student,

(St. Andrews College of arts, (UPENDRA BHAWARKAR)

Signature of coordinator signature of external examiner

I, PATRACIA PEREIRA here by certify that the following student of St.Andrew’s

Stamp of college signature of professor

(St. Andrews College of arts (PROF. PATRICIA PEREIRA)

It gives me immense pleasure in acknowledging the valuable & co-operative

Despite teething troubles, a strong institution gradually emerged with a great

were opened. As a result of re-organization servicing functions were transferred to the

Starting as Indian enterprise with highly patriotic motives, insurance companies

MEMBERS OF THE BOARD OF THE CORPORATION

 Shri. T.S. Vijayan (Chairman)

 Shri. D.K. Mehrotra (Managing Director - LIC)

 Shri. Thomas Mathew T. (Managing Director - LIC)

 Shri. A.K. Dasgupta (Managing Director - LIC)

 Shri. Ashok Chawla (Finance Secretary, Ministry of Finance, Govt. of India)

 Shri. R. Gopalan (Secretary, Department of Financial Services, Ministry of

 Shri. Yogesh Lohiya (Chairman cum Managing Director, GIC of India)

LIC CORPORATES IN 50 YEARS.

CENTRAL OFFICE BUILDINGS

 Maximize mobilization of people's savings by making insurance-linked savings

 Promote amongst all agents and employees of the Corporation a sense of

 Sampling Technique: Random sampling is used to conduct the survey of the

FROM CREATING IDENTITY TO FORTERING UNITY.

FROM ‘INVESTING FUNDS’ TO ‘EMPOWERING NATIONAL

Life insurance investments

Investments made from 1-9-56 to 31-3-57

India is on the brink of a revolution in terms of economic and social growth. On a

FROM THE FIRST VALUATION TO THE THIRTY-FIFTH

The Sunday Statesman

With the announcement by LIC of India’s tentative scheme of differential bonuses

The Indian Express

The declaration of bonuses by the LIC will be recognized as a heartening

With steady improvement in managerial in the expenses of the Corporation, the

Windfall awaits LIC policyholders

NON – MEDICAL SCHEMES: FROM AN EXPERIMENT

The life Insurance Corporation of India has, as an experimental measure, decided

 Policies will be issued only to persons aged 40 years and under.

 Insurance cover will be offered under a number of tables such as endowment

‘ON THE SPOT POLICY’ TO ‘GREEN CHANNEL’

Ordinarily, proposals, when received, are forwarded through a Branch Office,

The Mobile Team

o The proposal is underwritten and if it is acceptable, a decision is recorded.

o Premium quotation is provided for payment.

o Policy Bond is printed and issued on the spot.

CHANGING GEOGRAPHY OF GLOBAL BUSINESS

Flash – back (1959)

Many insurance companies of Indian origin were operating in foreign countries

Having regard to the difficulties, particularly in respect of foreign exchange, it was

Fast Forward (2005)

The geography of LIC’s foreign operations contracted as demanded in accordance

A BOUQUET OF UNIT LINKED PLANS

Unit – linked Insurance Plan

A vote of thanks was proposed by Shri B. D. Deshmukh, Executive Director, and

Fast Forward (2001-2005)

Bima-Plus, Future plus, Jeevan-Plus