Lic Document

INTRODUCTION
What is Insurance?
Life insurance is a type of insurance where the insured transfers a risk to the insurer. The
insured pays a premium and receives a policy in exchange. The risk assumed by the insurer
is the risk of death of the insured.
There are three parties in a life insurance transaction; the insurer, the insured, and the
owner of the policy (policyholder), although the owner and the insured are often the same
person. For example, if John Smith buys a policy on his own life, he is both the owner and
the insured. But if Mary Smith, his wife, buys a policy on John's life, she is the owner and he
is the insured. The owner of the policy is called the grantee (he or she will be the person
who will pay for the policy).
Another important person involved is the beneficiary. The beneficiary is the person or
persons who will receive the policy proceeds upon the death of the insured. The
beneficiary is not a party to the policy, but is designated by the owner, who may change the
beneficiary unless the policy has an irrevocable beneficiary designation. With an
irrevocable beneficiary, that beneficiary must agree to changes in beneficiary, policy
assignment, or borrowing of cash value.
The insurance sector in India has come a full circle from being an open competitive market
to nationalization and back to a liberalized market again.
Insurance is a social device where uncertain risks of individuals may be combined in a
group and thus made more certain – small periodic contributions by the individuals
provide a found out of which those who suffer losses may be reimbursed.
In addition to being a means to protect oneself, the insurance Industry is an

efficient conduit for the saving of people to be channeled towards economic growth. In
India, the Insurance Industry7 is more than 150 years old. Today, it is monopolized by
two PSU's in their respective fields of life and General Insurance. However, with the
successful passage IRDA Bill through both houses of parliament in December 1999 the
sector has been opened up to private players.
RESEARCH OBJECTIVES
The report gives the brief background of the sector and proceeds to highlight
the short comings of the existing setup and players. The benefits of liberalized
sector are enumerated. The report also tries to identify the market potential
for insurance products and the strategy that can we employed to exploit the
same. The stress is also given on knowing the awareness level of general
public.
RESEARCH METHODOLOGY
To conduct the market research first of all it is necessary to create a research

design. A research design is basically a blue print of how a research design is
to be conducted.
It may include:
1. Choosing the approach
2. Determining the types of data needed.
3. Locating the source of data.
4. Choosing a method of data.
RESEARCH DESIGN
Basically, there are 3 types of approaches which are used during the research:
1. Exploratory
2. Descriptive
3. Experimental.
During this research the explanatory and descriptive approaches are taken
into consideration because of the availability of relevant information to
describe the relationships between the marketing problem and available
information.
TYPES OF DATA USED

Both primary and secondary data is used in the research.
Data Collection Methods:
To conduct the market research the data is collected by two sources.
SECONDARY DATA
Secondary data is one which already exists and is collected from the published
sources.
The sources from which secondary data was collected are:
I. INTERNAL SOURCES:
• Newspapers and corporate Magazines like Economic Times,
Insurance Times, and Insurance Post.
• Annual reports
• Company prospectus
• Company database
II. EXTERNAL SOURCES:

• Internet services
PRIMARY DATA
The primary sources of data refer to the first hand information. Primary data
is collected during the survey with the help of Questionnaires .
INTRODUCTION OF THE COMPANY
“ LIFE INSURANCE CORPORATION OF INDIA (LIC)”

HISTORY OF LIC
LIFE INSURANCE BUSINESS
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.
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian soil
started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company
started its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the
life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the central
government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the Triton
Insurance Company Ltd., the first general insurance company established in the year 1850
in Calcutta by the British.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.
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 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 crore mark of new business. But with re-organization happening in
the early eighties, by 1985-86 LIC had already crossed 7000.00 crore 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,
Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other
cities. With a vision of providing easy access to its policyholders.
LIC has launched its SATELLITE SAMPARK offices. 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 is associated with joint ventures abroad in the field of insurance, namely, Ken-India
,Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited, Kuala
Lumpur and Life Insurance Corporation (International) E.C. Bahrain. The Corporation has
registered a joint venture company in 26th December, 2000 in Katmandu, Nepal by the
name of Life Insurance Corporation (Nepal) Limited in collaboration with Vishal Group
Limited, a local industrial Group. An off-shore company L.I.C. (Mauritius) Off-shore Limited
has also been set up in 2001 to tap the African insurance market.
GENERAL INSURANCE
General insurance business in the country was nationalized with effect from 1st
January, 1973 by the General Insurance Business (Nationalization) Act, 1972. More than
100 non-life insurance companies including branches of foreign companies operating
within viz., the National Insurance Company Ltd., The New India Assurance Company Ltd.,
The Oriental Insurance Company Ltd., and The United India Insurance Company Ltd. with
head offices at Calcutta, Bombay, New Delhi and Madras, respectively.
General Insurance Corporation (GIC) which was the holding company of the four public
sector general insurance companies has since been delinked from the later and has been
approved as the "Indian Reinsurer" since 3 rd November 2000. The share capital of GIC and
that of the four companies are held by the Government of India. All the five entities are
Government companies registered under the Companies Act, 1956. The general insurance
business has grown in spread and volume after nationalization. The four companies have
2699 branch offices, 1360 divisional offices and 92 regional offices spread all over the
country.
GIC and its subsidiaries have representation either directly through branches or agencies in
16 countries and through associate locally incorporated subsidiary companies in 14 other
countries. A wholly- owned subsidiary company of GIC, i.e. Indian International Pvt. Ltd. is
operating in Singapore and there is a joint venture company, viz. Ken-India Assurance Ltd.
in Kenya. A new wholly owned subsidiary called New India International Ltd., UK has also
been registered.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes
of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India, frames a
code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the
general insurance business in India with effect from 1st January 1973.
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.
VISION AND MISSION
Mission
"Explore and enhance the quality of life of people through financial security by
providing products and services of aspired attributes with competitive returns,
and by rendering resources for economic development."
Vision
"A trans-nationally competitive financial conglomerate of significance to

societies and Pride of India."
ACHIEVMENTS AND AWARDS
Reader Digest Trusted Brand Insurance

CNBC Awaaz Consumer awards 2010
category 2010
OUTLOOK MONEY -- NDTV PROFIT AWARD

2009 in World Brand Congress Award
" BEST LIFE INSURER CATEGORY "
Golden Peacock Innovative Product / Service ASIA PACIFIC HRM Congress, 2009 Award
Award - 2009 for INNOVATIVE HR PRACTICES
NDTV Profit Business Leadership Award

Loyalty Award - 2009
2008
INDY's Silver Award for Best Corporate Film NASCOM IT USER Award 2008

Business Superbrand India 2009 ASIA BRAND CONGRESS BRAND

LEADERSHIP AWARD, 2008
PRODUCTS OF LIC
INSURANCE PLANS
As individuals it is inherent to differ. Each individual insurance needs and requirements are
different from that of the others. LICs Insurance Plans are policies that talk to you
individually and give you the most suitable options that can fit your requirement.
CHILDREN PLANS
 Jeevan Anurag
 Komal Jeevan
 Jeevan Chaaya
 Child Future Plan
 Child Fortune Plus
 Child Career Plan
 Jeevan Fortune Plus
PLAN FOR HANDICAPPED DEPENDENTS

 Jeevan Adhar
 Jeevan Vishwas
ENDOWMENT ASSURANCE PLANS

 Jeevan Anand
 Jeevan Amrit
 The Endowment Assurance Policy
 The Endowment Assurance Policy-limited payment
 Jeevan Mitra(double cover endowment plan)
 Jeevan Mitra(triple cover endowment plan)
PLANS FOR HIGH WORTH INDIVIDUALS

 Jeevan Shree-I
 Jeevan Pramukh
MONEY BACK PLANS

 The Money Back Policy- 20 years
 The Money Back Policy- 25 years
 Jeevan Surabhi-15 years
 Jeevan Surabhi-20years
 Jeevan Surabhi-25 years
 Bima Bachat
WHOLE LIFE PLANS
 The Whole life policy
 The Whole life policy-limited payment
 The Whole life policy-single premium
 Jeevan Anand
TERMS ASSURANCE PLANS

 Two Year Temporary Assurance Policy
 The Convertible Term Assurance Policy
 Anmol Jeevan-I
 Amulya Jeevan-I
PENSION PLANS
Pension Plans are Individual Plans that gaze into your future and foresee financial stability
during your old age. These policies are most suited for senior citizens and those planning a
secure future, so that you never give up on the best things in life.
PENSION PLANS
 Market Plus-I
 Jeevan Nidhi
 Jeevan Akshay-VI
 New Jeevan Dhara-I
 New Jeevan Suraksha-I
UNIT PLANS
Unit plans are investment plans for those who realize the worth of hard-earned money.
These plans help you see your savings yield rich benefits and help you save tax even if you
don't have consistent income.
UNIT PLANS
 Market Plus-I
 Profit Plus
 Money Plus-I
 Child Fortune Plus
 Jeevan Saathi Plus
SPECIAL PLANS
LIC’s Special Plans are not plans but opportunities that knock on your door once in a
lifetime. These plans are a perfect blend of insurance, investment and a lifetime of
happiness!
I. GOLDEN JUBLIEE PLAN
 New Bima Gold
II. HEALTH PLAN

 Health Protection Plus
III. SPECIAL PLAN

 Bima Niresh
 Jeevan Saral
MARKET PLUS-I
FEATURES
“IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE
POLICYHOLDER”
This is a unit linked deferred pension plan. You can take the plan with or without life cover.
You can also choose the level of cover within the limits, which will depend on whether the
policy is a Single premium or Regular premium contract and on the level of premium you
agree to pay.
Four types of investment Funds are offered. Premiums paid after allocation charge will
purchase units of the Fund type chosen. The Unit Fund is subject to various charges and
value of units may increase or decrease, depending on the Net Asset Value (NAV).
1. Payment of Premiums:
You may pay premiums regularly at yearly, half-yearly or quarterly or monthly (through
ECS mode only) intervals over the term of the policy. Alternatively, a Single premium can
be paid.
2. Eligibility Conditions And Other Restrictions:
For Basic Plan without Life Cover

a) Minimum Entry Age - 18 years (last birthday)
b) Maximum Entry Age - Regular premium: 75 years (nearest birthday)
- Single premium: 80 years (nearest birthday)
c) Minimum Vesting Age - 40 years (completed)
d) Maximum Vesting Age - 85 years (nearest birthday)
e) Minimum Deferment Term - Regular premium: 10 years
- Single premium: 5 years
f) Sum Assured - NIL
g) Minimum Premium - Regular premium (other than monthly (ECS) mode):
Rs. [5,000] p.a. for deferment term 20 years and above
Rs. [10,000] p.a. for deferment term 15 to 19 years
Regular premium (for monthly (ECS) mode):

Rs. [1,000] p.m. for deferment term 15 years and
above
Rs. [1,500] p.m. for deferment term 10 to 14 years
Single premium: Rs. [30,000] for deferment term 5

years and above
Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly.
For monthly (ECS), the premium shall in multiples of Rs. 250/-.
For Basic Plan with Life Cover
a) Minimum Age at entry -18 years (last birthday)

b) Maximum Age at entry - 65 years (nearer birthday
c) Minimum Age at vesting - 40 years (completed)
d) Maximum Vesting Age - 75 years (nearest birthday)
e) Minimum Deferment Term - Regular premium: 10 years
Single premium: 5 years
f) Minimum Premium - Regular premium:
Rs. [5,000] p.a. for deferment term 20 years and
above
Regular premium (for monthly (ECS) mode):

Rs. [1,000] p.m. for deferment term 15 years and above
Rs. [1,500] p.m. for deferment term 10 to 14 years
Single premium: Rs. [30,000] for deferment term 5

years and above
g) Minimum Sum Assured - Rs. 30,000

h) Maximum Sum Assured -
Single Premium : Equal to single premium
Regular Premium :
If Critical Illness Benefit Rider is opted for:
10 times of the annualized premium if age at entry is upto 40 years.
5 times of the annualized premium if age at entry is 41 years and above.
If Critical Illness Benefit Rider is not opted for:
20 times of the annualized premium if age at entry is upto 40 years.
10 times of the annualized premium if age at entry is 41 years and above.
Where the minimum Sum Assured is not in the multiples of Rs. 5,000, it will be rounded off
to the next multiple of Rs. 5,000. Annualized Premiums shall be payable in multiple of Rs.
1,000 for other than ECS monthly. For monthly (ECS), the premium shall in multiples of Rs.
250/-.
3. Other Features:

i) Top-up (Additional Premium) :
You can pay additional premium in multiples of Rs.1,000 without any limit at anytime
during the term of policy. In case of yearly, half-yearly, quarterly or monthly (ECS) mode of
premium payment such Top-up can be paid only if all premiums have been paid under the
policy.
ii) Switching:
You can switch between any fund types during the policy term subject to switching
charges, if any.
iii) Increase / Decrease of risk covers: No

increase of covers will be allowed under the plan. You can, however, decrease any or all of
the risk covers within the specified limit once in a year during the Policy term, provided all
due premiums under the Policy have been paid. The reduced levels of cover will be
available within the limits specified in para 4 above. Further, once reduction in risk cover is
allowed, the same cannot be subsequently increased/ restored.
iv) Partial Withdrawal: No partial withdrawal of units will be allowed under this plan.
v) Discontinuance of premiums and revival:

If premiums are payable either yearly, half-yearly, quarterly or monthly (through ECS) and
the same have not been paid within the days of grace, the Policy will lapse. A lapsed policy
can be revived during the period of two years from the due date of first unpaid premium.
I. Where atleast 3 years’ premiums have been paid, the Life cover, Accident Benefit and
Critical Illness Benefit riders, if any, shall continue during the revival period.

During this period, the charges for Mortality, Accident Benefit and / or Critical Illness
Benefit riders, if any, shall be taken, in addition to other charges, by cancelling an
appropriate number of units out of the Policyholder’s Fund Value every month. This will
continue to provide relevant risk covers:
1. for two years from the due date of first unpaid premium, or
2. till the date of vesting, or
3. till such period that the Policyholder’s Fund Value reduces to one annualized
premium,
whichever is earlier.
The benefits payable under the policy in different contingencies during this period shall be
as under:
A. In case of Death: Life cover Sum Assured plus the Policyholder’s Fund Value, if life
cover is opted for. If life cover is not opted for, then only the Policyholder’s Fund
Value is payable.
B. In case of Death due to accident: Accident Benefit Sum Assured in addition to the
amount under A above, if Accident Benefit is opted for.
C. In case of Critical Illness claim: Critical Illness Rider Sum Assured, if opted for.
D. On vesting: The Policyholder’s Fund Value.
E. In case of Surrender (including Compulsory Surrender): The Policyholder’s

Fund Value. The Surrender value, however, shall be paid only after the completion of
3 policy years.
II. Where the policy lapses without payment of at least 3 years’ premiums, the Life Cover,
Accident Benefit and Critical Illness Benefit rider covers, if any, shall cease and no charges
for these benefits shall be deducted. However deduction of all the other charges shall
continue. The benefits under such a lapsed policy shall be payable as under:
A. In case of Death: The Policyholder’s Fund Value.
B. In case of death due to accident: Only, the amount as under F above.
C. In case of Critical Illness claim: Nil
D. In case of Surrender (including Compulsory Surrender): Policyholder’s Fund

Value / monetary value as the case may be, shall be payable after the completion of
the third policy anniversary. No amount shall be payable within 3 years from the
date of commencement of policy.
vi) Revival:
If due premium is not paid within the days of grace, the policy lapses. A lapsed policy can be
revived during the period of two years from the due date of first unpaid premium or before
vesting, whichever is earlier. The period during which the policy can be revived will be
called “Period of revival” or “revival period”.
If premiums have not been paid for at least 3 years, the policy may be revived within two
years from the due date of first unpaid premium. If the life cover is opted for, the revival
shall be made on submission of proof of continued insurability to the satisfaction of the
Corporation and the payment of all the arrears of premium without interest.
If life cover is not opted for, the revival shall be made on the payment of all the arrears of
If at least 3 years’ premiums have been paid and subsequent premiums are not duly paid,
the policy may be revived within two years from the due date of first unpaid premium but
before the date of vesting, if earlier. No proof of continued insurability is required and all
arrears of premium without interest shall be required to be paid, irrespective of whether
life cover is opted for or not.
The Corporation reserves the right to accept the revival at its own terms or decline the
revival of a lapsed policy. The revival of a lapsed policy shall take effect only after the same
is approved by the Corporation and is specifically communicated in writing to the
Policyholder.
Irrespective of what is stated above, if less than 3 years’ premiums have been paid and the
Policyholder’s Fund Value is not sufficient to recover the charges, the policy shall terminate
and thereafter revival will not be entertained. If 3 years or more than 3 years premiums
have been paid and the Policyholder’s Fund Value reduces to one annualized premium, the
policy shall terminate and Policyholder’s Fund Value as on such date shall be refunded to
the Life Assured and thereafter revival will not be allowed.
vii) Conversion to annuity at Vesting date:
On surviving to the date of vesting, the Policyholder’s Fund Value will compulsorily be
utilised to provide an annuity based on the then prevailing immediate annuity rates under
the relevant annuity option. An option will also be there to commute up to one-third of the
Policyholder’s Fund Value at the time of vesting of the annuity, which shall be paid as a
lump sum. In case commutation is opted for, the amount of annuity/pension available will
be reduced proportionately. There will also be an option to purchase pension from any
other life insurance company registered with IRDA subject to Regulatory provisions. If you
opt to purchase pension from any other life insurance Company, you will have to inform it
to the Corporation six months prior to the vesting date. In such case, LIC will transfer the
Policyholder’s Fund Value directly to the chosen Company.
Notwithstanding the above mentioned, in case the amount at the vesting date is insufficient
to purchase the minimum amount of annuity allowed by LIC, then the balance in the
Policyholder’s Fund Value at the vesting date shall be refunded to the Policyholder.
4. Reinstatement: A policy once surrendered cannot be reinstated.
5. Risks borne by the Policyholder:
1. LIC’s Market Plus – I is a Unit Linked Life Insurance product which is different from
the traditional insurance products and is subject to the risk factors.
2. The premium paid in Unit Linked Life Insurance policies are subject to investment
risks associated with capital markets and the NAVs of the units may go up or down
based on the performance of fund and factors influencing the capital market and the
insured is responsible for his/her decisions.
3. Life Insurance Corporation of India is only the name of the Insurance Company and
LIC’s Market Plus - I is only the name of the unit linked life insurance contract and
does not in any way indicate the quality of the contract, its future prospects or
returns.
4. Please know the associated risks and the applicable charges, from your Insurance
agent or the Intermediary or policy document of the insurer.
5. The various funds offered under this contract are the names of the funds and do not
in any way indicate the quality of these plans, their future prospects and returns.
6. All benefits under the policy are also subject to the Tax Laws and other financial
enactments as they exist from time to time.
6. Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the
policy to us within 15 days. The amount to be refunded in case the policy is returned within
the cooling-off period shall be determined as under:
Value of units in the Policyholder’s Fund
Plus unallocated premium.
Plus Policy Administration charge deducted
less charges @ Rs.0.20per thousand Life Cover Sum Assured if life cover is opted for or @
Rs. 0.20per thousand of Total Premiums payable during entire term of policy, if life cover is
not opted for.
Less Actual cost of medical examination and special reports, if any.
7. Loan: No loan will be available under this plan.
8. Assignment:
Assignment is allowed under this plan during the deferment period.
9. Exclusions:
In case the Life Assured commits suicide at any time within one year, the Corporation will
not entertain any claim by virtue of the policy except to the extent of the Fund Value of the
units held in the Policyholder’s Unit Account on death.
BENEFITS
A) Death Benefits
If the Life cover is opted for, the Sum Assured under the Basic Plan together with the
Policyholder’s Fund Value shall be payable either in a lump sum or as pension. In case the
policy is taken without life cover, then the Policyholder’s Fund Value shall be payable
either in a lump sum or as pension.
The amount of pension will depend on the payable lump sum and the then prevailing
immediate annuity rates under the annuity option chosen.
B) Benefit on Vesting:
On your surviving to the date of vesting, the Policyholder’s Fund Value will compulsorily
be utilised to provide a pension based on the then prevailing immediate annuity rates
under the relevant annuity option. However, you may opt to commute up to one-third of
the Benefit to be paid as a lump sum. Further, you may choose to purchase pension from
LIC or other life insurance company.
1. Options :
A) Life Cover Option:
This plan may be opted for with or without life insurance cover. If life insurance cover is
opted for, he/ she can choose the level of cover within the limits. This benefit will be
available only till the policy anniversary on which the age nearer birthday of the Life
Assured is 75 years.
B) Accident Benefit Option:
If you have opted for life cover, you may opt for Accident Benefit equal to life cover
subject to minimum Rs. 25,000 and maximum Rs. 50 lakh (taken all policies with LIC of
India and other insurers). This benefit will be available only till the policy anniversary on
which the age nearer birthday of the Life Assured is 70 years. In case of death by Accident,
an additional sum equal to Accident benefit will be payable.
C) Critical Illness Benefit Rider:
If you have opted for life cover, you may opt for Critical Illness Benefit equal to the life
cover subject to a minimum of Rs. 50,000 and maximum of Rs. 10 lakh (including other
policies with LIC of India) provided the policy term is 10 years and above. This benefit
will be available only till the policy anniversary on which the age nearer birthday of the
Life Assured is 60 years or for a maximum policy term of 35 years whichever is earlier. In
case of diagnosis of defined categories of Critical Illness subject to certain terms and
conditions, a sum equal to the Critical.
2. Investment of Funds: The plan offers following four funds detailed below:
Investment in Short-term Investment in Details and objective

Fund Type Government / investments Listed Equity of the fund for risk
Government such as money Shares /return
Guaranteed market
Securities / instruments
Corporate
Debt
Bond Fund Not less than Not more than Nil Low risk
60% 40%
Secured Not less than Not more than Not less than Steady Income –Lower
Fund 45% 40% 15% & to Medium risk
Not more than
55%
Balanced Not less than Not more than Not less than Balanced Income and
Fund 30% 40% 30% & growth – Medium risk
Not more than
70%
Growth Not less than Not more than Not less than Long term Capital
Fund 20% 40% 40% & growth – High risk
Not more than
80%
The Policyholder has the option to choose any ONE out of the above 4 funds.
3. Method of Calculation of Unit price: Units will be allotted based on the Net
Asset Value (NAV) of the respective fund as on the date of allotment. There is no Bid-Offer
spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will
be computed on daily basis and will be based on investment performance, Fund
Management Charge and whether fund is expanding or contracting under each fund type
and shall be calculated as under:
Appropriation price is applied (when fund is expanding):

Market value of investments held by the fund plus the expenses incurred in the purchase of
the assets plus the value of any current assets plus any accrued income net of fund
management charges less the value of any current liabilities less provisions, if any divided
by the number of units existing at the valuation date (before any new units are allocated).
Expropriation price is applied (when fund is contracting):

Market value of investments held by the fund less the expenses incurred in the sale of
assets plus the value of any current assets plus any accrued income net of fund
management charges less the value of any current liabilities less provisions, if any divided
by the number of units existing at the valuation date (before any units redeemed).
Applicability of Net Asset Value (NAV):

The premiums received up to a particular time (presently 3 p.m.) by the servicing branch of
the corporation through ECS or by way of a local cheque or a demand draft payable at par
at the place where the premium is received, the closing NAV of the day on which premium
is received shall be applicable. The premiums received after such time by the servicing
branch of the corporation through ECS or by way of a local cheque or a demand draft
payable at par at the place where the premium is received, the closing NAV of the next
business day shall be applicable.
Similarly, in respect of the valid applications received for surrender, death claim, switches
etc up to such time by the servicing branch of the Corporation closing NAV of that day shall
be applicable. For the valid applications received in respect of surrender, death claim,
switches etc after such time by the servicing branch of the Corporation the closing NAV of
the next business day shall be applicable
In respect of the policies vesting, NAV of the date of vesting shall be applicable.
The timing given is as per the existing guidelines and changes in this regard shall be as per
the instruction from IRDA.
4. Charges under the Plan:
A. Premium Allocation Charge:

This is the percentage of the premium deducted towards charges from the premium
received. The balance constitutes that part of the premium which is utilized to
purchase (Investment) units for the policy. The allocation charges are as below:
For Single premium policies: 3.3%
For Regular premium policies:
Allocation charge
Premium Band (per annum)
First Year Thereafter
5,000 to 75,000 16.50% 2.50%
75,001 to 1,50,000 15.75% 2.50%
1,50,001 to 3,00,000 15.00% 2.50%
3,00,001 to 5,00,000 14.25% 2.50%
5,00,001 and above 13.50% 2.50%
Allocation charge for Top-up: 1.25%

B) Charges for Risk Covers:
i) Mortality Charge -

This is the cost of life insurance cover which is age specific and will be taken every month.
The charges per Rs. 1000/- life insurance cover for some of the ages in respect of a healthy
life are as under:
Age 25 35 45 55
Rs. 1.42 1.73 3.89 10.76
ii Critical illness Benefit rider charge -

This is the cost of Critical Illness Benefit rider (if opted for). These are age specific and will
be taken every month.
The charges per Rs. 1000/- Critical Illness Rider Sum Assured per annum for some of the
ages in respect of a healthy life are as under:
Age 25 35 45 55
Rs. 0.91 1.80 5.31 14.44
iii Accident Benefit charge - This is the cost of Accident Benefit rider (if opted for) and
will be levied every month at the rate of Rs. 0.50 per thousand Accident Benefit Sum
Assured per policy year.
C) Other Charges:
1) Policy Administration charge: Rs. 60/- per month during the first policy year and
Rs. 20/- per month thereafter, throughout the term of the policy.
2) Fund Management Charge –It is a charge levied as a percentage of the value of units
at following rates:
0.50% p.a. of Unit Fund for “Bond” Fund

0.60% p.a. of Unit Fund for “Secured” Fund
0.70% p.a. of Unit Fund for “Balanced” Fund
0.80% p.a. of Unit Fund for “Growth” Fund
Fund Management Charge shall be appropriated while computing NAV.
3) Switching Charge –This is the charge levied on switching of monies from one fund to
another. Within a given policy year 4 switches will be allowed free of charge. Subsequent
switches in that year shall be subject to a switching charge of Rs. 100 per switch.
4) Bid/Offer Spread – Nil.
5) Surrender Charge – Nil
6) Service Tax Charge – A service tax charge, if any, shall be levied on the following
charges
a)Policy Administration, Mortality, Accident Benefit and Critical Illness Benefit rider, if
any – by canceling appropriate number of units out of the Policyholder’s Fund Value on a
monthly basis as and when the corresponding Policy Administration, Mortality, Accident
Benefit and Critical Illness Benefit rider charges are deducted.
b) Premium allocation - at the time of allocation.
c) Fund Management – at the time of deduction of Fund Management Charge.
d) Switching - at the time of effecting switch and
e) Alteration ( as provided under Miscellaneous charge) - on the date of alteration in

the policy.
The level of this charge will be as per the rate of service tax as applicable from time to time.
Presently, the rate of Service Tax is 12% with an educational cess at the rate of 3% thereon
and hence effective rate is 12.36%.
7) Miscellaneous Charge – This is a charge levied for an alteration within the contract, such
as reduction in policy term, change in premium mode, etc. An alteration may be allowed
subject to a charge of Rs. 50/-.
D) Right to revise charges:
The Corporation reserves the right to revise all or any of the above charges except the
premium allocation charge and Mortality charge, with the prior approval of IRDA .
Although the charges are reviewable, they will be subject to the following maximum limit:
- Policy Administration Charge: Rs. 150/- per month during the first policy year and Rs.
50/- per month thereafter, throughout the term of the policy.
- Fund Management Charge: The Maximum for each Fund will be as follows:
1. Bond Fund: 1.00% p.a. of Unit Fund

2. Secured Fund: 1.10% p.a. of Unit Fund
3. Balanced Fund: 1.20% p.a. of Unit Fund
4. Growth Fund: 1.30% p.a. of Unit Fund
- Critical Illness Benefit charges shall not exceed by more than 200% of the current rate.

- Switching Charge shall not exceed Rs. 200/- per switch.
- Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration is
requested.
In case the policyholder does not agree with the revision of charges the policyholder shall
have the option to withdraw the Policyholder’s Fund Value.
5. Surrender:
The Surrender value, if any, is payable only after completion of the third policy anniversary
both under Single and Regular premium contract. The surrender value will be the
Policyholder’s Fund Value at the date of surrender. There will be no Surrender charge.
If you apply for surrender of the policy within 3 years from the date of commencement of
policy, then the Policyholder’s Fund Value shall be converted into monetary terms. No
charges shall be deducted thereafter and this monetary value shall be paid on completion
of 3 years from the date of commencement of policy.
In case of death of life assured after the date of surrender but before the completion of 3
years from the date of commencement of policy the monetary value payable on the
completion of 3 years shall be payable to the nominee/ legal heir immediately on death.
Compulsory Surrender:
The policy shall be surrendered compulsorily in following cases:
i) where the policy is not revived during the period of revival, the policy shall be
terminated after completion of 3 years from the date of commencement of the policy or on
expiry of revival period, whichever is later. However, if the date of vesting falls before the
expiry of revival period, then the policy shall be terminated on the date of vesting.
ii) where premiums have been paid for less than 3 years or under single premium policies,
if the balance in policyholder’s fund value is not sufficient to recover the relevant charges;
iii) where premiums have been paid for at least 3 years and the balance in policyholder’s
fund value falls below a minimum balance of one annualized premium.
Policyholder’s Fund Value shall be converted into monetary value as under :

The NAV on the date of application for surrender or on the date when revival period is over
(in case of compulsory surrender), as the case may be, multiplied by the number of units in
the Policyholder’s Fund as on that date will be the monetary amount.
NEW BIMA GOLD

FEATURES
It is a plan where premiums paid over the term of plan are paid back during the policy term
in instalments and life insurance cover is available not only during the term but also during
the extended term of the plan.
PAYMENT OF PREMIUM
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals or
through salary deductions over the policy term.

Age Annual Premium per 1000 SA
12 16 20
15 63.30 55.20 40.40
20 64.25 56.00 41.20
25 65.20 57.00 42.30
30 66.90 58.80 44.20
35 71.05 62.40 47.55
40 78.10 68.10 52.75
45 88.45 76.45 60.15
50 103.30 88.10 -
55 121.80 - -
BENEFITS
Survival Benefit:
Payable in case of life assured surviving to the end of the specified durations provided the
policy is in full force as given below:
For policy term 12 years:

15% of the Sum Assured under Basic Plan at the end of each 4th & 8th policy year

15% of the Sum Assured under Basic Plan at the end of each 4th, 8th &12th policy year

10% of the Sum Assured under Basic Plan at the end of each 4th, 8th, 12th & 16th policy
year.
On expiry of policy term:

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.
DEATH BENEFIT:
During the policy term: Payment of an amount equal to Sum Assured under the Basic Plan
on death of the Life Assured during the policy term provided the life cover is in force.
During the extended term: Payment of an amount equal to 50% of Sum Assured under
the Basic Plan on death of the Life Assured during the extended term provided all the
premiums under the policy have been paid.
Extended Term: The extended term shall be half of the policy term after the expiry of the
policy term.
OPTIONAL RIDER BENEFIT:

Accident Benefit rider shall be available as an optional benefit for a premium at the rate of
Re.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
overall limit of Rs.50 lakh taking all existing policies of the Life Assured under individual as
well as group schemes taken with Life Insurance Corporation of India and other insurance
companies and the Accident Benefit Rider Sum Assured under the new proposal into
consideration. This rider benefit is available only during the policy term but not during
extended term.
This rider shall be available for the Life Assured engaged in police duty either in any
military, naval or police organisation by payment of an additional premium at the rate of
Rs.0.50 per thousand Accident Benefit Rider Sum Assured.
ACCIDENTAL DEATH AND DISABILITY BENEFIT:
On death arising as a result of accident an additional amount equal to the Accident Benefit
Rider Sum Assured is payable. On total and permanent disability arising due to accident
(within 180 days from the date of accident) an amount equal to the Accident Benefit Rider
Sum Assured will be paid over a period of 10 years in monthly instalments.
The disability due to accident should be total and such that the Life Assured is unable
to carry out any work to earn the living. Following disabilities due to accident are
covered:
a) irrevocable loss of the entire sight of both eyes, or
b) amputation of both hands at or above the wrists, or

c) amputation of both feet at or above ankles, or
d) amputation of one hand at or above the wrist and one foot at or above the
ankle
No benefit will be paid if accidental death or disability arises due to accident in case
of :
a) intentional self-injury, attempted suicide insanity or immorality or the Life

Assured is under the influence of intoxicating liquor, drug or narcotic
b) engagement in aviation or aeronautics other than that of a passenger in any
air craft
c) injuries resulting from riots, civil commotion, rebellion, war, invasion,
hunting, mountaineering, steeple chasing or racing of any kind
d) accident resulting from committing any breach of law
e) accident arising from employment in armed forces or military services or police
organisation.
AUTO-COVER FACILITY:
If at least two full years’ premiums have been paid in respect of this policy, any subsequent
premium be not duly paid, full death cover shall continue for a period of two years from the
date of First Unpaid Premium(FUP) or till the end of policy term, whichever is earlier.
PAID UP VALUE:
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 expiry of policy
term or at Life Assured’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 Accident Benefit Rider will cease to apply if the policy is in lapsed condition. During the
Auto Cover Period also, the Accident Benefit Rider shall not be available. The extended
term cover shall not be available in case of paid-up policies.
GUARANTEED SURRENDER VALUE:
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.
OTHER BENEFITS: The plan offers other benefits as follows:
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.
Grace Period : A
grace period of one month but not less than 30 days will be allowed for payment of yearly,
half-yearly or quarterly premiums and 15 days for monthly premiums.
Revival :
Subject to production of satisfactory evidence of continued insurability, a lapsed policy can
be revived by paying arrears of premium together with interest within a period of five
years from the due date of first unpaid premium. The rate of interest applicable will be as
decided by the Corporation from time to time.
Cooling-off period:
If you are not satisfied with the “Terms and Conditions” of the policy you may return the
policy to us within 15 days.
Eligibility Conditions and Other Restrictions:
FOR BASIC PLAN:
Minimum age at entry :14 years (completed)

Maximum age at entry :57 years (nearest birthday) for Term 12 years
:51 years (nearest birthday) for Term 16 years
45 years (nearest birthday) for Term 20 years
Age at expiry of extended term :Maximum 75 years (nearest birthday)
Term :12, 16 and 20 years.
Minimum Sum Assured :Rs. 50,000 /-
Maximum Sum assured :No limit
Sum Assured will be in multiples of Rs.5,000 /- only.
FOR THE ACCIDENT BENEFIT RIDER OPTION :

Minimum age at entry :18 years (completed)
Maximum age at entry :57 years (nearest birthday) for Term 12 years
:51 years (nearest birthday) for Term 16 years
45 years (nearest birthday) for Term 20 years
Minimum Sum Assured :Rs. 50,000 /-
Sum Assured will be in multiples of Rs.5,000 /- only.
REBATES / EXTRA FOR MODE OF PREMIUM PAYMENT AND 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 modes :NIL
Monthly mode
5% extra on tabular premium
High Sum Assured Rebates:
Less than Rs. 1 Lakh :NIL
Rs. 1 Lakh and Less than Rs.2 Lakh :Rs.5 per thousand Sum Assured
Rs. 2 Lakh and above :Rs.7.5 per thousand Sum Assured
EXCLUSIONS: This policy will be void if the Life Assured commits suicide at anytime on or
after the date on which the risk on the policy has commenced but before the expiry of one
year from the date of commencement of risk under the policy. In case of death due to
suicide during this period, the Corporation will not entertain any claim by virtue of this
policy except to the extent of a third party's bonafide beneficial interest acquired in the
policy for valuable consideration of which notice has been given in writing to the office to
which premiums under this policy were paid, at least one calendar month prior to death.
THE MONEY BACK POLICY (with profit)

FEATURES
Unlike ordinary endowment insurance plans where the survival benefits are payable only
at the end of the endowment period, this scheme provides for periodic payments of partial
survival benefits as follows during the term of the policy, of course so long as the policy
holder is alive.
In the case of a 20-year Money-Back Policy (Table 75), 20% of the sum assured becomes
payable each after 5, 10, 15 years, and the balance of 40% plus the accrued bonus become
payable at the 20th year.
For a Money-Back Policy of 25 years (Table 93), 15% of the sum assured becomes payable
each after 5, 10, 15 and 20 years, and the balance 40% plus the accrued bonus become
payable at the 25th year.
An important feature of this type of policies is that in the event of death at any time within
the policy term, the death claim comprises full sum assured without deducting any of the
survival benefit amounts, which have already been paid. Similarly, the bonus is also
calculated on the full sum assured.
BENEFITS
Introduction
Insurance Regulatory & Development Authority (IRDA) requires all life insurance
companies operating in India to provide official illustrations to their customers. The
illustrations are based on the investment rates of return set by the Life Insurance Council
(constituted under Section 64C(a) of the Insurance Act 1938) and is not intended to reflect
the actual investment returns achieved or may be achieved in future by Life Insurance
Corporation of India (LICI).
For the year 2004-05 the two rates of investment return declared by the Life Insurance
Council are 6% and 10% per annum.
Product summary:
These are Money Back type Assurance plans that provides financial protection against
death throughout the term of plan along with the periodic payments on survival at
specified durations during the term.
Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through salary deductions
as opted by you throughout the term of the policy, or till the earlier death.
Bonuses:
This is a with-profit plan and participate in the profits of the Corporation’s life insurance
business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses
are declared per thousand Sum Assured annually at the end of each financial year. Once
declared, they form part of the guaranteed benefits of the plan. Final (Additional) Bonus
may also be payable provided policy has run for certain minimum period.
Death Benefit:
The Sum Assured plus all bonuses to date is payable in a lump sum upon the death of the
life assured during the policy term irrespective of the Survival benefit /benefits paid
earlier.
Survival Benefits:
The percentage of Sum Assured as mentioned below will be paid on survival to the end of
specified durations :
% of Sum Assured paid at the end of

specified duration
Plan
Duration
75 93
5 20% 15%
10 20% 15%
15 20% 15%
20 40% 15%
25 - 40%
All bonuses declared upto the maturity date will also be paid alongwith the final survival
benefit.
Supplementary/Extra Benefits :
These are the optional benefits that can be added to your basic plan for extra
protection/option. An additional premium is required to be paid for these benefits.
Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender values are
available under the plan on earlier termination of the contract.
Guaranteed Surrender Value:

The policy may be surrendered after it has been in force for 3 years or more. The
guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s
premium and all survival benefits paid earlier.
Corporation’s policy on surrenders:

In practice, the Corporation will pay a Special Surrender Value – which is either equal to or
more than the Guaranteed Surrender Value. The benefit payable on surrender is the
discounted value of the reduced claim amount that would be payable on death or at
maturity. This value will depend on the duration for which premiums have been paid and
the policy duration at the date of surrender. In some circumstances, in case of early
termination of the policy, the surrender value payable may be less than the total premiums
paid.
The Corporation reviews the surrender value payable under its plans from time to time
depending on the economic environment, experience and other factors.
Note:
The above is the product summary giving the key features of the plan. This is for illustrative
purpose only. This does not represent a contract and for details please refer to your policy
document.
Plan/ Term 75/ 20 Years 93/ 25 Years

At the end of
20% 15%
5 years
At the end of
20% 15%
10 years
At the end of
20% 15%
15 years
At the end of balance 40%
15%
20 years + bonus
At the end of balance 40%
NIL
25 years + bonus
Plan Parameters:
Minimum Maximum
Entry age 13 (lbd) 50
Sum assured (Rs.) 50,000 NO LIMIT
Fixed at 20 for plan 75
Term (years) -
and 25 for plan 93
Mode of Payment Maximum Maturity Age Policy loan available

Yearly, Half-yearly,
Quarterly, Monthly, 70 years No
Salary Saving Scheme
JEEVAN MITRA (DOUBLE COVER ENDOWMENT PLAN)

FEATURES
This is an Endowment Assurance plan that provides greater financial protection against
death throughout the term of plan. It pays the maturity amount on survival to the end of
the policy term.
Premiums: Premiums are payable yearly, half-yearly, quarterly, monthly or through

Salary deductions, as opted by you, throughout the term of the policy or earlier death.
Bonuses: This is a with-profit plan and participates in the profits of the Corporation’s life
insurance business. It gets a share of the profits in the form of bonuses. Simple
Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each
financial year. Once declared, they form part of the guaranteed benefits of the plan. A Final
(Additional) Bonus may also be payable provided a policy has run for certain minimum
period.
BENEFITS
Death Benefit:
Table No 88: Twice the Sum Assured plus all bonuses on the basic sum assured to date is
payable in a lump sum upon the death of the life assured.
Table No 133: Thrice the Sum Assured plus all bonuses on the basic sum assured to date is
payable in a lump sum upon the death of the life assured.
Maturity Benefit:
The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on
survival to the end of the policy term.
Supplementary/Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra
protection/option. An additional premium is required to be paid for these benefits.
Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender value will
be available under the plan on earlier termination of the contract.

guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s
premium.
Corporation’s Policy On Surrenders:

In practice, the company will pay a Special Surrender Value – which is either equal to or
more
than the Guaranteed Surrender Value. The benefit payable on surrender reflects the
discounted value of the reduced claim amount that would be payable on death or at
maturity. This value will depend on the duration for which premiums have been paid and
the policy duration at the date of surrender. In some circumstances, in case of early
termination of the policy, the surrender value payable may be less than the total premiums
paid.
KOMAL JEEVAN
FEATURES
Product summary:
This is a Children's Money Back Plan that provides financial protection against death
during the term of plan with periodic payments on survival at specified durations. This
plan can be purchased by any of the parent or grand parent for a child aged 0 to 10 years.
Commencement of risk cover:

The risk commences either after 2 years from the date of commencement of policy or from
the policy anniversary immediately following the completion of 7 years of age of child,
whichever is later.
Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions,
as opted by you, up to the policy anniversary immediately after the life assured (child)
attains 18 years of age or till the earlier death of the life assured. Alternatively, the
premium may be paid in one lump sum (Single premium).
Guaranteed Additions:
The policy provides for the Guaranteed Additions at the rate of Rs.75 per thousand Sum
Assured for each completed year. The Guaranteed Additions are payable at the end of the
term of the policy or earlier death of the Life Assured.
Loyalty Additions:
This is a with-profit plan and participates in the profits of the Corporation’s life insurance
business. It gets a share of the profits in the form of loyalty additions which are terminal
bonuses payable along with death or maturity benefit. Loyalty addition may be payable
depending on the experience of the Corporation.
BENEFITS
Survival Benefit:
The percentage of sum assured as mentioned below will be paid on survival to the end of
specified durations:
On the policy anniversary

immediately following the Life % of Sum Assured
assured attains the age of
18 years 20%
20 years 20%
22 years 30%
24 years 30%
Death Benefit:
In case of death of the life assured before the commencement of risk, the policy shall stand
cancelled and premiums paid (excluding the Premium for Premium waiver Benefit ) under
the policy will be refunded. However, if death occurs after the commencement of risk but
before the policy matures, the full Sum Assured plus Guaranteed Additions together with
Loyalty Additions, if any, is payable.
Maturity Benefit:
The Guaranteed Additions together with Loyalty Additions, if any, is payable in a lump sum
on survival to the end of the policy term.
Premium Waiver Benefit:

This is an optional benefit that can be added to your basic plan. An additional premium is
required to be paid for this benefit. By payment of this additional premium, the proposer
can secure the benefit of cessation of premiums from his/her death to the end of the
deferment period. The deferment period for this purpose is to be taken as 18 minus age at
entry of child.
Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender value is
available on the plan on earlier termination of the contract.

Guaranteed Surrender Value before the date of commencement of risk is 90% of the
premiums paid excluding the premiums paid during the first year and any extra premium
paid. After the date of commencement of risk, the Guaranteed Surrender Value is 90% of
the premiums paid before the date of commencement of risk excluding the premiums paid
during the first year and any extra premium paid plus 30% of the premiums paid after the
date of commencement of risk.
Corporation’s policy on surrenders:

In practice, the company will pay a Special Surrender Value – which is either equal to or
more than the Guaranteed Surrender Value. The benefit payable on surrender reflects the
discounted value of the claim amount that would be payable on death or at maturity. This
value will depend on the duration for which premiums have been paid and the policy at the
date of surrender. In some circumstances, in case of early termination of the policy, the
surrender value payable may be less than the total premium paid.
Note: The above is the product summary giving the key features of the plan. This is for
illustrative purpose only. This does not represent a contract and for details please refer to
your policy document.
GROWTH OF PRIVATE LIFE INSURANCE COMPANIES IN THE

LAST 5 YEARS
The insurance industry recorded a booming growth of 35% in premium income during
2004-05 with the 13 private sector players walking away with. An impressive 129% while
the Life Insurance Corporation of India recorded a 21% growth.
Thus the market share of state behemoths dropped to 78% in 2004 05 from 87% a year
ago.
According to ASSOCHAM Eco Pulse (AEP) Study, the industry premium increased to
Rs253.42bn in 2004-05 from Rs187.1bn in 2003-04. The LIC total premium for the year
2004-05 amounted to Rs197.85bn as against the Rs162.84bn during previous year.
During April-June 2005, the largest private company ICICI Prudential has increased its
share from 6.25% in 2004-05 to 7.68% in current fiscal.
The opening up of the sector has given some of the most innovative products like the
customized insurance policies and now the unit linked policies that have gained much of
customer attention. The sector has huge potential and certain other new and innovative
areas can also be looked into for enhancing market share and premium income, said
Sanghi.
HDFC is next in the row with 2.91% market share which has increased from 1.92% last
fiscal followed by TATA AIG which now shares 2% of the market from 1.18% last fiscal.
Birla Sun life's share has dropped from 2.45% during FY'05 to 1.76% in first two
months of FY'06. SBI life comes next with 1. 72% share and has infact dropped a few
percent points from last year.
Max New York life and Aviva Life Insurance have captured more than 1% share each from
less than 1% share during FY'05. Others like ING, AMP Sanmar, Met Life and Sahara India
have less than 1 % share.
The detail of the market share of life insurance companies is attached. The market share of
the private players has doubled every year from 5.6% in 2002-03 to, 12% in 2003-04 and
close to 22% in 2004-05.
The state run insurance company has the biggest advantage of its huge network which the
company can use to penetrate into rural market that is still lying untapped.
Another option with the life insurance companies to capture more and more market share
could be product innovation and constantly developing an insurance product in order to
meet the ever-changing requirements of the customer. Quality customer service and
education can be another area where a company can differentiate itself from other
companies.
IT TO BOOST LIFE MARKET GROWTH

THE LIFE Insurance Corporation of India (LIC) has turned to information technology in a
bid to shed its image as a dinosaur among more nimble private sector companies. LIC,
India's dominant life insurer, is encouraging policyholders to use its web site to pay
premiums and make claims. Last- month, it announced new mobile phone SMS (testing)
services to alert policyholders of news about their plans.
These moves, unmatched by most of LIC's smaller private sector rivals, are part of an effort
to open new channels to increase the speed and quality of customer service -long seen as
LIC's weakness after decades as India's monopoly life insurer. LIC's performance in the
year to March 2004 suggests that these efforts are working. It sold 27 million new policies
generating Rs85.7 billion (US$1.9 billion) in premium income - an annual growth of about
11 percent. LIC's deployment of information technology may have helped it maintain its 88
percent market share of premium sales.
Yet few believe that technology alone will drive the company's - and in effect, the
Indian life industry's expansion.
"Ultimately the growth of life insurance depends on growth of the economy," said TK.
Banerjee, a board member of the Insurance Regulatory Development Authority.
India's economic growth rate in March 2004 hit double-digit figures to become Asia's
fastest-growing economy. Most economists forecast growth to stabilize at around 7 percent
to 2005. Banerjee said that this climate of rising economic prosperity is Encouraging
consumers to think more about insurance.
Nonetheless, most life companies believe consumers still need Sanmar: "People still don't
think that insurance is important. Most sales happen after personal interaction."
AMP Sanmar, a two-year old joint venture between south.-Indian based conglomerate
Sanmar and Australia's AMP, has employed some 3,000 sales agents who are targeting
small and medium-sized towns that have low penetration rates of life insurance. India's life
insurance penetration is less than three percent. "We're focused on places where there is
no other company - not even LIC," Subramaniam said,-remarking that unlike LIC, AMP
Sanmar regards the internet and mobile phones as channels for promotion, not sales.
He said that the internet is not widespread as a channel to sell consumer products in India,
but Subramaniam has not ruled out deploying such technology in the future. Whatever the
merits of new distribution channels, the industry fears a decline in sales following new
taxes levied on single premium products. Single premium life insurance has been popular
in India mainly because guaranteed returns were tax-free.
This encouraged policyholders to pay large premiums with minimal risk cover, for
payments at maturity that often exceeded the returns of more sophisticated financial
products such as mutual funds. But last October, the government decided to tax premiums
that paid above 20 percent of the sum assured.
The decision has reduced sales of single premium products, which is likely to restrain the
overall growth of India's life industry. The industry regulator has forecast growth of life
premiums to be around 20 percent to March -2004, about the same level as 1999, down
from a burst of sales in 2002 of 43.5 percent.
India's life insurers have rallied to persuade the government to rescind the ruling later this
year ,but any decision must wait for the end of parliamentary elections currently
underway.
CURRENT STANDING OF PRIVATE LIFE INSURANCE COMPANIES IN

URBAN SECTOR
Life insurance is possibly the most- retail of all financial services, and is
required by people of all segments and in all locations. At a broad level, ICICI
Prudential aims to secure the families of the middle and upper class working
people in urban India. To this end, they have pursued a pan-India distribution
strategy and backed it up with a range of products that meets the needs of a
wide range of people, be they from rural or urban areas.
Today, they have branches in 74 locations and rural presence in more than 15
states. Certainly, the majority of the business still comes from urban areas
such as metros and mini-metros. However, they have seen rural business
grow significantly and expect it to continue making greater contribution in the
years to come.
ROLE OF FOREIGN COMPANIES IN INDIA

Government has allowed 26% foreign equity participation in the insurance sector.
This has its limitations. While most foreign insurers planning to start their services in India
were not pleased by this condition, they reluctantly agreed that this was expected in an
opening economy and this will not change their outlook for India.
After all no insurance company can afford to ignore a market of 1bn people. But the fact
remains that they:
• Can not appoint majority directors on the company board;
• Can not have say in the day to day workings of the company;
• Can Affect Only Special Resolutions.
This cap, however, will have a great impact on the Indian counter part to raise 74% of the
funds in their joint venture. To add to this if Indian partners like State bank of India, with
over 9000 branches nationwide, will demand premium for their existing distribution
network, we will see the foreign insurance companies demand hefty premiums for bringing
in their global
expertise and brand. Mr. Vaidya, Chairman of SBI, has recently stated that all it is looking
for is a good and reliable partner and the question of a hefty premium to be charged to its
foreign partner is not significant. The monolith has finally come to business senses foreign
companies are unhappy even about laws pertaining to repatriation of funds. The Stipulated
investment criteria is also something that all players in the sector, be it Indian or foreign,
are closing
watching.
The foreign players are essentially looking to tap their" global expertise in the variety
markets and use that know-how to work in the Indian scenario. Designing of
products,information systems, technical expertise, manpower planning etc is what one
expects the foreign players to have a say in.
Any venture of the joint kinds needs to be between equals. If this is not there then there is
every chance that a partner in the venture will feel increasingly uncomfortable and would
be looking to call the joint venture off.
FINDINGS
QUESTIONNAIRE ANALYSIS
Respondents = 80
Respondents Responded = 60
Response Rate = 75%
Respondents are taken from private, government and business sectors.
1. According to you, which have played a major role in the field of life
insurance companies?
private
employees govt. employees businessman
LIC 10 13 10
HDFC 5 3 5
ICICI 3 3 4
OTHER
S 2 1 1
14
12 private
10 employees
8 govt. employees
6
4 businessman
2
0
I
S
C
IC
ER
LI
DF
IC
TH
H
After analyzing this data it is found that from the given three respective level
of Pvt. Govt. and Business 10 out of 20 (30%), 13 out of 20 (39%) and 10 out
of 20 (30%) are in favour of LIC, while 5 out of 20 (15%), 3 out of 20 (9%) and
5 out of 20 (6%), 1 out of 20 (30%) and 1 out of 20 (30%) are in favour of
other Pvt. Companies.
2. Which insurance companies have been successful to make strong
public base by advertisement?
Private employees Govt employees Business man
LIC 12 14 12
HDFC 3 2 4
ICICI 4 3 3
OTHERS 1 1 1
16
14
12
10 Private
8 employees
6 Govt employees
4
2
0 Business man
From the above table, it is found that from the given three sector Private, Govt.
and Business 12 out of 20 (36%), 14 out of 20 (42%), 12 out of 20 (36%), are
in the favour of LIC. 3 out of 20 (9%), 2 out of 20 (6%) and 4 out of 20 (12%)
are in favour of HDFC, whereas only 1 out of 20 (3%), 1 out of 20 (3%) 1 and
out of 20 (3%) favour others company.
3. Which insurance company has gained massive public support in the
current fiscal year?
Private govt.
employees employees businessman
LIC 12 14 10
HDFC 3 2 5
ICICI 3 2 4
OTHERS 2 2 1
14
12
Private
10
employees
8
govt. employees
6
4 businessman
2
0
LIC HDFC ICICI others
From the above table, it is found that from the given three sector Private, Govt.
and Business 12 out of 20 (36%), 14 out of 20 (42%), 10 out of 20 (30%), are
in the favour of LIC 3 out of 20 (9%), 2 out of 20 (6%) and 4 out of 20 (12%)
are in favour of ICICI, whereas only 2 out of 20 (6%), 2 out of 20 (6%) 1 and
out of 20 (3%) favour others company.
4. Do you think insurance policy is in the direction of public welfare?
Private Govt.
employees employees Businessman
YES 13 16 12
NO 7 4 8
20
15
10
YES
NO
5
0
Private employees Govt. employees Businessman
The above table shows that from private sector 13 out of 20 (30%) agree and
7 out of 20 (21%) disagree, from govt. sector 16 out of 20 (48%) think it right
but 4 out of 20 (12%) don’t thick it so and from business man 12 out of 20
(36%) are in favour of the above statement but 8 out of 20 (24%) don’t favour
it.
5. Is retirement bond or pension policy launched by the number of private
player as well as public sector Company in the direction of secured old age?
Private Govt.
YES 15 18 13
NO 5 2 7
20
15 YES
NO
10
0
Private Govt. Businessman
employees employees
It is obvious from the above table that 15 out of 20 (45%), 18 out of 20 (54%)
and 13 out of 20 (39%) from the given three think retirement bend or pension
policy a
legitimate step in the direction of secure old age but 5 out 20 (15%), 2 out of
20 (6%) and 7 out 20 (21%) don’t agree with the opinion of the majority class.
6. Do you think that risk coverage factor included in Insurance policy
attracts general public towards the policy?
Private employees Govt. employees Businessman
YES 12 16 11
NO 8 4 9
25
20
15 NO
10 YES
5
0
employees
employees
Businessman
Private
Govt.
From the above table it is found that 12 out of 20 (36%) from Private sector
16 out of 20 (48%). From Govt. sector and 11 out of 20 (33%) thinks risk
coverage factor attractive but rest 8 out of 20 (24%), 4 out of 20 (12%) and 9
out 20 (27%) from the above them sector don’t think it so encouraging
towards saving trend whereas 3 out of 20 (9%), 2 out of 20 (6%) and 4 out of
20 (12%) don’t think it so.
7. What according to you, the term plan that only covers risk and doesn’t
cover maturity benefit on survival at the end of the term provides security
cover over policy holders or a smart way of accumulative money from
policy holders?
Private Govt.
security cover 12 16 11
accumulative
money 8 4 9
20
15
Security Cover
10
5 Accumulative
Money
0
Private Govt Business
employees
employees man
It is obvious from the above data that 11 out of 20 (33%), from the Pvt. Sector,
15 out of 20 (45%) from Govt. sector and 12 out of 20 (36%) think term plan
as a security cover but 9 out of 20 (27%), 5 out of 20 (15%) and 8 out of 20
(24%) from the three respective group think it as a way of accumulating
money insurance company.
8. Do you think that the arrival of so many private companies in this insurance
sector envisage a lot of choice to policy holder?
Private Govt.
YES 16 18 16
NO 4 2 4
20
15 Private
employees
10 Govt. employees
5 Businessman
0
YES NO
From analyzing the above data it is found that 16 out of 20 (48%) from Pvt.
Sector, 18 out of 20 (54%) from Govt. sector and 16 out of 20 (48%) think that
the arrival of private players envisage a lot of choice to policy holder. But 4
out of 20 (12%), 2 out of 20 (6%) and 4 out of 20 (12%) don’t think it so.
9. Do you agree that customer-centricity and transparency are the buzzwords
for success in this evolving industry?
Private Govt.
YES 18 20 19
NO 2 0 1
20
15 Private
employees
10 Govt. employees
5 Businessman
0
YES NO
From this above data, it is found the 18 out of 20 (54%) from Pvt. Sector and
20 out of 20 (60%) from Govt. Sector 19 out of 20 (57%) from Business men
agree with this statement whereas only 2 out of 20 (6%) from Pvt. Sector and
1 out of 20 (3%) from Business men do not agree with this statement.
IMPORTANCE OF JOINT VENTURES
HDFC STANDARD LIFE INSURANCE COMPANY LIMITED
HDFC
HDFC Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged
as the largest residential mortgage finance institution in the country. The corporation has
had a series of share issues raising its capital to Rs. 119 crores. The net worth of the
corporation as on March 31, 2000 stood at Rs. 2,096 crores.
HDFC operates through 75 locations throughout the country with its Corporate
Headquarters in Mumbai, India. HDFC also has an international office in Dubai,
V.A.E., with service associates in Kuwait, Oman and Qatar.
STANDARD LIFE
Standard Life is Europe's largest mutual life assurance company. Standard Life, which has
been in the life insurance business for the past 175 years, is a modern company surviving
quite a few changes since selling its first policy in 1825. The company expanded in the 19th
century from its original Edinburgh premises. Standard Life currently has assets exceeding
over £70 billion under its management and has the distinction of being accorded"AAA"
rating consequently for the past six years by Standard & Poor.
THE JOINT VENTURE
HDFC Standard Life Insurance Company Limited was one of the first companies to be
granted license by the IRDA to operate in life insurance sector. Each of the JV player is
highly rated and been conferred with many awards. HDFC is rated 'AAA' by both CRISIL
and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and Standard and Poors.
These reflect the efficiency with which DFC and Standard Life manage their asset base of
Rs. 15,000 Cr and Rs. 600,000 Cr respectively.
HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000.
HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and Standard Life
has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.
HDFC Standard Life Insurance Products

• Money Back
• Endowment
• Term Assurance Plan
• Flexible Bond
• Development Insurance Plan
ICICI PRUDENTIAL LIFE INSURANCE COMPANY
ICICI
ICICI Ltd. was established in 1955 by the World Bank, the Government of India and the
Indian Industry, to promote industrial development of India by providing project and
corporate finance to Indian industry.
Since inception, ICICI has grown from a development bank to a financial
conglomerate and has become one of the largest public financial institutions in India.
ICICI has thus far financed all the major sectors of the economy, covering 6,848
companies and 16,851 projects. As of March 31, 2000, ICICI had disbursed a total of Rs.
1,13,070 crores, since inception.
PRUDENTIAL POLICY
Prudential policy was founded in 1848. Since then it has grown to become one of the
largest providers of a wide range of savings products for the individual including life
insurance, pensions, annuities, unit trusts and personal banking. It has a presence in over
15 countries, and caters to the financial needs of over 10 million customers. It manages
assets of over US$ 259 billion (Rupees 11, 39,600 crores approx.) as of December 31, 1999.
Prudential is the largest life insurance company in the United Kingdom (Source:
S&P's UK Life Financial Digest, 1998). Asia has always been an important region for
Prudential and it has had a presence in Asia for over 75 years. In fact Credential’s first
overseas operation was in India, way back in 1923 to establish Life and General Branch
agencies.
THE JOINT VENTURE
ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000. The
authorized capital of the company is Rs.2300 Million and the paid up capital is Rs. 1500
Million. The Company is a joint venture of ICICI (74%) and Prudential plc UK (26%). The
Company was granted Certificate of Registration for carrying out Life Insurance business,
by the Insurance Regulatory and Development Authority on November 24, 2000. It
commenced commercial operations on December 19, 2000, becoming one of the first few
private sector players to enter the liberalized.
ICICI Prudential Life Insurance Products

 ICICI Prudential Forever Life
 ICICI Prudential Single Premium Bond
 ICICI Save 'n' Protect
 ICICI Prudential Cash Back
 ICICI Prudential Life Guard
 ICICI Pru Assure Investment
 ICICI Pru Life Link
BIRLA SUN LIFE INSURANCE COMPANY LIMITED
THE ADITYA BIRLA GROUP
Aditya Birla Group is India's second largest, business house, with a turnover of over
$4.75bn and an asset base of$3.8 bn. The Group is a well diversified conglomerate with
72,000 strong workforce spanning 40 Companies spread across 17 countries.
The flagship companies of the Group - Grasim, Hindalco, Indian Rayon and Indo
Gulf - hold leadership positions in their respective areas of business.
SUN LIFE ASSURANCE
Sun Life Assurance Co. of Canada, established in 1871, is licensed in Canada, the
U.S., the Philippines, Hong Kong, and the U.K. Its major lines of business are life
insurance, annuities and mutual funds and investment services. Sun Life's rating
reflects extremely strong diversification of revenues and profitability, outstanding
capitalization, good fundamental earnings, and high-quality investments.
In Canada, the company is especially strong. in the corporate life and health insurance and
savings markets. In the U.S., the company is a top 20 player in the variable annuity market
and a significant force in the upscale individual insurance market. In the U.K., Sun Life is
among top 20 life and health insurers.
THE JOINT VENTURE
Birla Sun Life Insurance Company, the 74: 26 joint ventures between Aditya Birla
Group and Sun Life financial Services --of Canada, has an equity capital of Rs. 150 crore.
Birla Sun Life has Mr. Nalli B Javeri as its CEO.
A six member Board, with equal representation from each of the JV Companies has been
constituted to run the Company. Mr. Donald A. Stewart, Chairman and CEO, Sun Life
Financial Services will head the Board. Mr. Kumar Mangalam Birla will be a director on the
board. Other directors include Mr. Douglas Henck, Executive Vice President of Sun Life's
Asian operations, Mr. Vijay Singh, Vice President India, Sun Life Financial Services, Mr. B. N.
Puranmalka, Group Vice-Chairman, and Mr. S. K. Mitra, Group Director, Financial Services
of the Aditya Birla Group.
The area of focus will be the rural segment as the company plans to leverage the
network of the Aditya Birla Centre for Community Initiative and Rural Development in
rural areas. Its multi-channel distribution set up comprises insurance advisors for life and
an expert marketing team for group products.
Birla Sun Life Insurance Products:

• Money Back
• Endowment
• Whole Life
• Birla Sun Life Term Plant
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) The entry of the Pvt. Players in the Insurance Sector has expanded the product segment
to meet the different level of the requirement of the customers. It has brought about
greater choice to the customers.
4) Private insurers have restricted reach to the customers.
5) LIC has vast market and very firm grip on its traditional customers and monopoly of life
insurance products.
6) 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.
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.
CONCLUSIONS GOT BY THE CONSUMER SURVEY ANALYSIS
1) Now days also Insurance is most popular as more plain protection against death and
people are unaware about the other aspects of insurance.
2) According to current scenario life and mater Insurance are the mast popular ones
followed by fire Insurance.
3) Majority of people consider the Insurance premium paid by them as reasonable.
4) Only few counted people are unaware about the entry of private players into the
insurance industry and a very high majority of people support their entry.
5) By the entry of private players. Consumers are expecting the premium to

down which would be the biggest blessing.
RECOMMENDATIONS
In the modernized well advanced hi-tech approach to the customer every possible facilities
and effort to build up the confidence of the rising policy holders towards. Insurance
companies, to complete one another nothing is left to recommend. But some
recommendations that are intensely felt and highly required for insures to sustain in the
market.
These are as follows:

a) More and more transparency should be ascertained between insurers and
policy holders.
b) Particularly, in the emerging boom in the insurance company, every insurance

company should be customer centered, and well versed in the handling of
problem and grievances of the policy holders.
c) Each and Every product launched by the Insurance company should be in

favour of increasing need of policy holders.
IRDA should be more and more responsible to the insurance sector by determiningsome
standard. It should be mandatory to every insurers to make more and more responsible
and responsive to the policy holders so that comprehensive understanding may be
developed among policy holders. It may be beneficial on both sides.
BIBLIOGRAPHY
BROCHURE AND INFORMATION BOOKLET
 Product List L.I.C.

 L.I.C. Annual Report, 2006
 ICICI Annual Report, 2006
 HDFC Annual Report, 2006
 Malhotra Committee Report on Reforms in the Insurance Sector, 1993.
 The Insurance Regulatory and Development Authority Bill, 1999.
NEWSPAPERS / MAGAZINES
 The Economic Times

 The Insurance Times
 Insurance Post
WEBSITES
 www.licindia.com
 www.indiainfoline.com
 www.iciciprulife.com
 www.hdfc.com

Lic Document

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Lic Document

Uploaded by

Copyright:

Available Formats

INTRODUCTION

In addition to being a means to protect oneself, the insurance Industry is an

To conduct the market research first of all it is necessary to create a research

1. Choosing the approach

2. Determining the types of data needed.

3. Locating the source of data.

4. Choosing a method of data.

TYPES OF DATA USED

Data Collection Methods:

To conduct the market research the data is collected by two sources.

The sources from which secondary data was collected are:

II. EXTERNAL SOURCES:

“ LIFE INSURANCE CORPORATION OF INDIA (LIC)”

LIFE INSURANCE BUSINESS

As a result of re-organization servicing functions were transferred to the branches, and

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

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

"A trans-nationally competitive financial conglomerate of significance to

Reader Digest Trusted Brand Insurance

OUTLOOK MONEY -- NDTV PROFIT AWARD

NDTV Profit Business Leadership Award

Business Superbrand India 2009 ASIA BRAND CONGRESS BRAND

PLAN FOR HANDICAPPED DEPENDENTS

ENDOWMENT ASSURANCE PLANS

PLANS FOR HIGH WORTH INDIVIDUALS

MONEY BACK PLANS

TERMS ASSURANCE PLANS

II. HEALTH PLAN

III. SPECIAL PLAN

2. Eligibility Conditions And Other Restrictions:

For Basic Plan without Life Cover

Regular premium (for monthly (ECS) mode):

Single premium: Rs. [30,000] for deferment term 5

For Basic Plan with Life Cover

a) Minimum Age at entry -18 years (last birthday)

Regular premium (for monthly (ECS) mode):

Single premium: Rs. [30,000] for deferment term 5

g) Minimum Sum Assured - Rs. 30,000

iii) Increase / Decrease of risk covers: No

v) Discontinuance of premiums and revival:

D. On vesting: The Policyholder’s Fund Value.

E. In case of Surrender (including Compulsory Surrender): The Policyholder’s

A. In case of Death: The Policyholder’s Fund Value.

B. In case of death due to accident: Only, the amount as under F above.

C. In case of Critical Illness claim: Nil

D. In case of Surrender (including Compulsory Surrender): Policyholder’s Fund

vii) Conversion to annuity at Vesting date:

4. Reinstatement: A policy once surrendered cannot be reinstated.

5. Risks borne by the Policyholder:

6. Cooling off period:

7. Loan: No loan will be available under this plan.

B) Accident Benefit Option:

Investment in Short-term Investment in Details and objective

Appropriation price is applied (when fund is expanding):

Expropriation price is applied (when fund is contracting):

Applicability of Net Asset Value (NAV):

4. Charges under the Plan:

A. Premium Allocation Charge:

Allocation charge for Top-up: 1.25%

i) Mortality Charge -

ii Critical illness Benefit rider charge -

0.50% p.a. of Unit Fund for “Bond” Fund

4) Bid/Offer Spread – Nil.