PROJECTREPORT

ON
LI
FEI
NSURANCECORPORATI
ONOFI
NDI
A
Submit
tedtoP. GDepar
tmentofcommer cekhal
ikote
(
Aut
onomous)Collegeber
hampurinpart
ialf
ulfi
ll
mentforawar
d
ofBachel
orDegr
eeinCommer ce
By
K.JAGANNATHSETHI
Eaxm R.N:011803CM163
ClassR.N:BC-
18-281
UNDERTHEGUIDANCEOFs ripr
avatsahoo,OES
Assi
stantprof
essorofCommer ce

P.
GDEPARTMENTOFCOMMERCE, KHALI
KOTE
(
AUTONOMOUS)
COLLEGE,
BERHAMPUR

Sr
ipr
avatsahoo,
OES
Assi
stantprof
essorofcommer ce
PostgraduateDepartmentofcommerce
Khali
kote(Autonomous)coll
ege,
Berhampur
 CERTI
FICATE
Thisistocertif
ythattheproj
ectreportenti
tl
edLIFEINSURANCE
CORPORATI ONOFI NDIAisar ecordofresearchworkdoneby
k.jagannat
hset hidur
ingtheper i
odofstudyundermygui dance
andsuper v
ision.t
histhesehasnotf or
medt hebasisforthe
awar dofanydegree,dipl
oma, fel
lowshi
porot hersi
milarti
tl
e.It
represent
sani ndependentworkont hepartofthecandidate.
Ber
hampur

Dat
e:

Si
gnat
ureoft
hegui
de
 DECLARATI
ON

Iher
ebydecl
aret
hatt
het
hesi
sent
it
leLI
FEI
NSURANCE
CORPORATI
ONOFI
NDI
Asubmi
tt
edt
oP.
GDepar
tmentof
commer cekhali
kote(Automonous)col l
ege, Berhampurforthe
awardofBachelorDegreeincommer ce,isabonaf i
derecordof
i
ndependentwor kdonebymeundert heguidanceand
supervi
sionofSriprav
atsahoo,assi
stantpr ofessorof
commer ce,P.GDepart
mentofcommer ce,khalikot
e
(Aut
onomous)col l
ege,ber
hampurandt hatt hisworkhasnot
beensubmi t
tedeit
herinwholeorinpartelsewher eforanyother
degree.

Ber
hampur

Dat
e:

: Si
gnat
ureoft
hecandi
dat
e
eachchapt
eri
sdi
scussedasf
oll
ows:
-
CHAPTER-
1
I
tconsi
stofi
nfor
mati
onoftheindust
ri
alpr
ofil
eofthel
i
fei
nsur
ancesect
ori
.e.when
andhowdoesthi
ssect
oremergesandhowi tcont
ri
but
est
otheeconomy,
CHAPTER-
2
Chapt
er2i ncl
udescompanypr ofi
leofLI
Ci.
e.howandwheni ti
sformed,which
werethecompaniesthatmergesandf or
m LI
C,itsmilest
ones,i
tsobj
ecti
ves,missi
on
andvi
sion,whatisli
fei
nsur
ance, boar
dofdir
ectors,
abr i
efonthesubsi
diari
es.I
t
al
soincludesawardsandachievementsbyLI
C.
CHAPTER-
3
Purposeofthestudyforwhi
chiti
sconduct
ed,
object
ivewhi
leconduct
ingthest
udy
andmet hodol
ogywhichconsi
stofthemedi
ansusedandthetool
susedt ocomplet
e
thestudy.
CHAPTER-
4
I
tincl
udessomeoft heproductsoff
eredbyLIC,netassetval
ueoftheproduct
s,t
ax
benefi
tstoit
spoli
cyhol
der scat
egori
zedaccordi
ngt othei
rage.I
talsoshowsthe
rel
ati
onshipofLI
Cwithinformati
ontechnol
ogy.
CHAPTER-
5
Thischapt
eri
ncl
udest
hef
indi
ngsandanal
ysi
sret
ri
evedaf
tert
hest
udyoft
heoft
he
proj
ect.
CHAPTER-
6
Chapt
er6consi
stsoft
heconcl
usi
onar
ri
vedaf
teranal
yzi
ngandf
indi
ngsf
rom t
he
st
udy.

CHAPTER-
1
I
NRODUCTI
ON
I
NSURANCECOMPANI
ESI
NINDI
A
InIndia,I
nsurancei sanational mat ter,i
nwhi chli
feandgener ali
nsuranceisyeta
boomi ngsectorwi thhugepossi bilit
iesf ordif
fer
entglobalcompani es,
aslife
i
nsur ancepremi umsaccountt o2. 5%andgener ali
nsurancepr emiumsaccountt o
0.65%ofI ndi
a'sGDP.TheI ndianI nsur ancesectorhasgonet hr oughsev er
alphases
andchanges, especi al
lyaf
ter1999, whent heGovt.ofIndi
aopenedupt heinsurance
sectorforpri
v atecompaniest osol i
citinsurancebypassingI nsuranceRegulatoryand
Dev el
opmentAut horit
y(I
RDA)Bi l
l,allowingFDIupt o26%.Si ncet hen,the
Insurancesect orinIndi
aisconsi deredasaf l
ouri
shingmar ketamongstgl obal
i
nsur ancecompani es.Howev er,thel ar gestl ifei nsur ancecompanyi nIndi ai sst il
l
ownedbyt hegov ernment .
Thehi st or yofI nsur ancei nIndi adat esbackt o1818, whenOr i
ental Lif
eI nsur ance
Companywasest abl i
shedbyEur opeansi nKol kat at ocat ert ot heirrequi rement s.
Nev er thel ess, ther ewasdi scr i
mi nat ionamongt hel i
feoff or eignersandI ndi ans, as
higherpr emi umswer echar gedf rom t hel att er.I n1870, Indi anst ookasi ghofr elief
whenBombayMut ual Li feAssur anceSoci et y, t
hef irstI ndi ani nsur ancecompany
cov eredI ndi anl ivesatnor mal rates.Onsetoft he20t hcent urybr oughtadr ast i
c
changei nt heI nsur ancesect or.
In1912, theGov t.ofI ndi apassedt woact s-t heLi feI nsur anceCompani esAct ,and
thePr ov identFundAct-t or egul atet hei nsur ancebusi ness.Nat i
onal I
nsur ance
CompanyLt d, foundedi n1906, ist heol destexi st i
ngi nsur ancecompanyi nI ndia.
Earlier, theI nsur ancesect orhadonl yt wost at ei nsur ers-Li feI nsurersi .
e.Li fe
Insur anceCor por at ionofI ndi a( LIC) , andGener al I
nsur ersi .e.Gener alInsur ance
Cor por at ionofI ndi a( GI C) .InDecember2000, thesesubsi diar ieswer ede- linked
from par entcompanyandwer edecl ar edi ndependenti nsur ancecompani es: Orient al
Insur anceCompanyLi mi ted, NewI ndi aAssur anceCompanyLi mi t
ed, Nat ional
Insur anceCompanyLi mi tedandUni tedI ndi aI nsur anceCompanyLi mi ted.
Wi t
hanannual gr owt hr at eof15- 20%andt hel ar gestnumberofl i
feinsur ance
policiesi nf or ce, thepot ent i
al oft heI ndi ani nsur ancei ndust ryishuge.Tot alv al
ueof
theI ndi ani nsur ancemar ket( 2004- 05)i sest imat edatRs.450bi l
li
on( US$10bi ll
ion) .
Thel ifei nsur ancei ndust ryi nI ndi agr ewbyani mpr essi v e36%, wit
hpr emi um
i
ncomef rom newbusi nessatRs.253. 43bi lliondur i
ngt hef iscal year2004- 2005,
brav i
ngst iffcompet it
ionf rom pr ivat ei nsur er s.Thi sr epor t ,"IndianI nsur ance
Indust ry :NewAv enuesf orGr owt h2012" ,findst hatt hemar ketshar eoft hest ate
behemot h, LIC, hascl ocked21. 87%gr owt hinbusi nessatRs. 197.86bi ll
ionby
selli
ng2. 4bi l
lionnewpol iciesi n2004- 05.Butt hi swasst i
ll notenought oar r
estt he
fallinit smar ketshar e,aspr ivat epl ay er sgr ewby129%t omopupRs.55. 57bi l
lion
i
n2004- 05f rom Rs.24. 29bi lli
oni n2003- 04.
Thought het ot al v olumeofLI C'sbusi nessi ncr easedi nt hef i
scal year(2004- 2005)
compar edt ot hepr eviousone, itsmar ketshar ecamedownf rom 87. 04t o78. 07%.
The14pr ivatei nsur ersi ncr easedt hei rmar ketshar ef r
om about13%t oabout22%i n
ay ear '
st ime.Thef i
gur esf ort hef i
rstt womont hsoft hef iscal year2005- 06al so
speakoft hegr owi ngshar eoft hepr ivat ei nsur er s.Theshar eofLI Cf ort hi sper iod
hasf urthercomedownt o75per cent , whi let hepr i
v atepl ay ershav egr abbedov er24
percent .
Ther ear epr esent ly12gener alinsur ancecompani eswi thf ourpubl icsect or
compani esandei ghtpr ivat ei nsur ersandpr iv atei nsur ancecompani escol lect i
vel y
hav ea10%shar eoft henon- li
fei nsur ancemar ket .

CHAPTER-
2
COMPANYPROFI
LE
COMPANYPROFI
LE
Thest oryofi nsur ancei spr obabl yasol dast hest or yofmanki nd.Thesamei nstinct
thatpr ompt smoder nbusi nessment odayt osecur et hemsel vesagai nstl ossand
disast erexi st edi npr imi tivemenal so.Theyt oosoughtt oav ertt heev ilconsequences
off i
reandf loodandl ossofl ifeandwer ewi llingt omakesomesor tofsacr ifi
cei n
or dert oachi ev esecur i
ty .Thought heconceptofi nsur ancei slar gelyadev elopment
oft her ecentpast ,par t
icul ar l
yaf tert hei ndust ri
al era–pastf ewcent ur i
es–y eti t
s
begi nni ngsdat ebackal most6000y ear s.
LifeI nsur ancei ni tsmoder nf orm camet oI ndi af rom Engl andi nt hey ear1818.
Or ient al Li feI nsur anceCompanyst ar tedbyEur opeansi nCal cut tawast hef i
rstl if
e
i
nsur ancecompanyonI ndi anSoi l
.Al lthei nsur ancecompani esest abl i
sheddur ing
thatper iodwer ebr oughtupwi tht hepur poseofl ooki ngaf tertheneedsofEur opean
communi tyandI ndiannat i
v eswer enotbei ngi nsur edbyt hesecompani es.Howev er ,
l
at erwi tht heef f
or t
sofemi nentpeopl el ikeBabuMut tylalSeal ,thef or eignl i
fe
i
nsur ancecompani esst artedi nsur i
ngI ndi anl ives.ButI ndi anl iv eswer ebei ngt r
eat ed
assub- standar dlivesandheav yext rapr emi umswer ebei ngchar gedont hem.
BombayMut ual LifeAssur anceSoci etyher al dedt hebi rthoff i
rstI ndi anl ife
i
nsur ancecompanyi nt hey ear1870, andcov er edI ndianl i
v esatnor mal rat es.
St ar ti
ngasI ndi anent erpr i
sewi thhi ghlypat rioticmot ives, insur ancecompani escame
i
nt oexi stencet ocar rythemessageofi nsur anceandsoci al secur ityt hroughi nsur ance
tov ar i
oussect orsofsoci ety .Bhar atI nsur anceCompany( 1896)wasal sooneofsuch
compani esi nspi redbynat ional ism.TheSwadeshi mov ementof1905- 1907gav er ise
tomor ei nsur ancecompani es.TheUni tedI ndi ai nMadr as, Nat ional Indi anand
Nat ional Insur ancei nCal cut t
aandt heCo- oper at i
v eAssur anceatLahor ewer e
est abl ishedi n1906.I n1907, Hindust anCo- oper at i
v eInsur anceCompanyt ooki ts
birthi noneoft her oomsoft heJor asanko, houseoft hegr eatpoetRabi ndr anat h
Tagor e, inCal cut ta.TheI ndi anMer cant il
e, Gener al Assur anceandSwadeshi Li f
e
(laterBombayLi fe)wer esomeoft hecompani esest ablisheddur i
ngt hesameper iod.
Pr iort o1912I ndiahadnol egi sl
at iont or egul atei nsur ancebusi ness.I nt hey ear1912,
theLi f eI nsur anceCompani esAct ,andt hePr ov identFundActwer epassed.TheLi fe
Insur anceCompani esAct , 1912madei tnecessar yt hatt hepr emi um r atet ablesand
per iodi cal valuat ionsofcompani esshoul dbecer tifiedbyanact uar y.Butt heAct
discr i
mi nat edbet weenf or eignandI ndi ancompani esonmanyaccount s, put tingt he
Indi ancompani esatadi sadv ant age.
Thef irstt wodecadesoft het went iet hcent ur ysawl otofgr owt hi ni nsur ance
busi ness.Fr om 44compani eswi t ht otal busi ness- in-for ceasRs. 22. 44cr ore, itroset o
176compani eswi t
ht otal busi ness- in-for ceasRs. 298cr orein1938.Dur i
ngt he
mushr oomi ngofi nsur ancecompani esmanyf i
nanci allyunsoundconcer nswer eal so
float edwhi chf ai
ledmi ser abl y .TheI nsur anceAct1938wast hef irstl egisl ation
gov er ningnotonl ylifeinsur ancebutal sonon- lifei nsur ancet opr ov idest rictst ate
cont rol ov erinsur ancebusi ness.Thedemandf ornat ional izat i
onofl ifei nsur ance
i
ndust r ywasmader epeat edl yi nt hepastbuti tgat her edmoment um i n1944whena
bill toamendt heLi feI nsur anceAct1938wasi nt roducedi nt heLegi slat ive
Assembl y.Howev er, i
twasmuchl at eront he19t hofJanuar y, 1956, thatl ife
i
nsur ancei nI ndiawasnat i
onal i
zed.About154I ndi ani nsur ancecompani es, 16non-
Indiancompani esand75pr ov identwer eoper atingi nI ndi aatt het imeof
national i
zat ion.Nat ional i
zat ionwasaccompl ishedi nt wost ages; initiallyt he
managementoft hecompani eswast akenov erbymeansofanOr dinance, andl ater,
theowner shi ptoobymeansofacompr ehensi vebi ll.ThePar l
iamentofI ndi apassed
theLi feInsur anceCor por at i
onActont he19t hofJune1956, andt heLi feI nsur ance
Cor por ationofI ndi awascr eat edon1stSept ember ,1956, wi tht heobj ect iveof
spreadi ngl ifeinsur ancemuchmor ewi del yandi npar ticul art ot her ural ar easwi t
ha
viewt or eachal l insur ableper sonsi nt hecount ry ,prov idingt hem adequat ef inancial
cov eratar easonabl ecost .
LIChad5zonal of fices, 33di v isional of ficesand212br anchof fices, apar tf rom i ts
corpor ateof fi
cei nt hey ear1956.Si ncel ifeinsur ancecont ract sar el ongt erm
cont ract sanddur ingt hecur rencyoft hepol icyi tr equi resav ar i
et yofser v icesneed
wasf eltint hel at ery earst oexpandt heoper at i
onsandpl aceabr anchof ficeateach
districtheadquar t er.Re- or gani zationofLI Ct ookpl aceandl ar genumber sofnew
branchof ficeswer eopened.Asar esul tofr e- organi zat ionser vi
ci ngf unct i
onswer e
transf er r
edt ot hebr anches, andbr ancheswer emadeaccount inguni ts.I twor ked
wonder swi t htheper formanceoft hecor por at i
on.I tmaybeseent hatf rom about
200. 00cr or esofNewBusi nessi n1957t hecor por at i
oncr ossed1000. 00cr oresonl y
i
nt hey ear1969- 70, andi tt ookanot her10y ear sf orLI Ct ocr oss2000. 00cr or emar k
ofnewbusi ness.Butwi thr e-or gani zat ionhappeni ngi nt heear lyei ght ies, by1985- 86
LIChadal readycr ossed7000. 00cr or eSum Assur edonnewpol icies.
TodayLI Cf unct ionswi th2048f ul
lycomput er i
zedbr anchof fices, 100di v isional
offices, 7zonal of ficesandt hecor por at eof fice.LI C’sWi deAr eaNet wor kcov ers100
divisional of fi
cesandconnect sal lthebr anchest hroughaMet roAr eaNet wor k.LIC
hast iedupwi t
hsomeBanksandSer v icepr ov ider st oof feron- l
inepr emi um
collect ionf aci l
ityi nsel ectedci ties.LI C’ sECSandATM pr emi um pay mentf acili
tyis
anaddi ti
ont ocust omerconv eni ence.Apar tf rom on- l
ineKi osksandI VRS, Info
Cent er shav ebeencommi ssi onedatMumbai , Ahmedabad, Bangal or e, Chennai ,
Hy der abad, Kol kat a, NewDel hi ,Puneandmanyot herci t i
es.Wi t
hav i
sionof
prov idingeasyaccesst oit spol icyhol der s, LIChasl aunchedi tsSATELLI TE
SAMPARKof fi
ces.Thesat ell
iteof ficesar esmal ler,leanerandcl osert ot he
cust omer .Thedi gi talizedr ecor dsoft hesat elliteof ficeswi ll faci l
itat eany wher e
serv icingandmanyot herconv eniencesi nt hef ut ure.
LICcont inuest obet hedomi nantl ifei nsur erev eni nt hel i
ber alizedscenar ioof
Indiani nsur anceandi smov ingf astonanewgr owt ht raject or ysur passi ngi t
sown
pastr ecor ds.LI Chasi ssuedov eronecr orepol i
ciesdur ingt hecur renty ear .Ithas
crossedt hemi l
est oneofi ssui ng1, 01, 32, 955newpol iciesby15t hOct ,2005, post i
ng
aheal thygr owt hr at eof16. 67%ov ert hecor r espondi ngper iodoft hepr ev iousy ear.
From t hent onow, LIChascr ossedmanymi lest onesandhassetunpr ecedent ed
perf or mancer ecor dsi nv ar iousaspect sofl ifei nsur ancebusi ness.Thesamemot iv
es
whi chi nspi redourf or efather st obr ingi nsur ancei ntoexi st encei nt hiscount ryi nspi
re
usatLI Ct ot aket hi smessageofpr otect iont ol ightt hel ampsofsecur ityi nasmany
homesaspossi bleandt ohel pt hepeopl ei npr ov idingsecur ityt ot hei rf ami li
es.
Someoft hei mpor tantmi lest onesi nthel ifei nsur ancebusi nessi nI ndi aar e:
1818: Orient alLif eI nsur anceCompany ,thef irstl i
fei nsur ancecompanyonI ndian
soil star t
edf unct ioni ng.
1870: BombayMut ual LifeAssur anceSoci ety ,t
hef irstIndianl ifeinsur ancecompany
startedi tsbusi ness.
1912: TheI ndianLi feAssur anceCompani esActenact edast hef i
rststat utet o
regulat ethel i
f ei nsur ancebusi ness.
1928: TheI ndianI nsur anceCompani esActenact edt oenabl ethegov ernmentt o
collectst ati
stical infor mat ionaboutbot hlifeandnon- lif
ei nsur ancebusi nesses.
1938: Earli
erl egi slationconsol i
dat edandamendedt obyt heI nsur anceActwi tht he
object iveofpr ot ectingt hei nter estsoft hei nsur i
ngpubl ic.
1956: 245I ndianandf oreigni nsur ersandpr ov i
dentsoci etiesar etakenov erbyt he
cent ralgov ernmentandnat i
onal i
zed.LI Cf ormedbyanActofPar li
ament , viz.LIC
Act, 1956, wi t
hacapi tal cont r
ibut i
onofRs.5cr oref rom t heGov ernmentofI ndia.
TheGener alinsur ancebusi nessi nI ndia,ont heot herhand, cant racei tsr oot stot he
Trit
onI nsuranceCompanyLt d.,thef i
rstgener al i
nsur ancecompanyest ablishedi n
they ear1850i nCal cut t
abyt heBr iti
sh.
Someoft hei mpor tantmi lestonesi nt hegener alinsur ancebusi nessi nI ndi aar e:
1907: TheI ndianMer cant il
eI nsur anceLt d.setup, thef i
rstcompanyt ot ransactal l
classesofgener al i
nsur ancebusi ness.
1957: Gener al Insur anceCounci l,awi ngoft heI nsur anceAssoci ationofI ndi a,
framesacodeofconductf orensur ingf airconductandsoundbusi nesspr act i
ces.
1968: TheI nsur anceActamendedt or egulatei nvest ment sandsetmi nimum sol vency
mar gi nsandt heTar iffAdv isor yCommi tt
eesetup.
1972: TheGener al I
nsur anceBusi ness( Nat ional i
zation)Act ,1972nat ional izedt he
gener ali
nsur ancebusi nessi nI ndiawi thef fectf rom 1stJanuar y1973.
107i nsur ersamal gamat edandgr oupedi nt of ourcompani es’ v i
z.theNat ional
Insur anceCompanyLt d.,theNewI ndiaAssur anceCompanyLt d.,
theOr ient al
Insur anceCompanyLt d.andt heUni t
edI ndiaI nsur anceCompanyLt d.GI C
i
ncor por atedasacompany .
LI
CSUBSI
DIARI
ES
Unli
kepr ovi
sionsf orpr
ivatepl ay
ersintheinsurancesect or,
theLI CActprov idesfor
sett
ingupsubsi diari
esthroughpol i
cyhol
der sfund.I
tisduet ot heLICactt hatLICof
Indi
ahasanumberofsubsi diari
eswhichhel piti
nleveragingitspotential
tot he
maximum, provi
dinganenhancedsetofdi v ersi
fi
edservicestoi tscustomer s.These
subsidiar
iesincl
udeLI CInternational
,LI
CNepal ,
LICLanka, LICHousi ngFinance
andLI CMut ualFund.
LI
CINERNATI
ONAL
Thisisajointventureof
fshorecompanypr omotedbyLI Cwhichcommenced
operati
onsinJuly ,
1989wi t
htheobjecti
vesofofferingUS$denomi nat
edpol
ici
esto
catertotheinsuranceneedsofNRI sandprovi
dingi nsuranceservi
cestohol
dersof
LICpolici
escurrentl
yresi
dingintheGulf
.LICInt
er nationaloper
atesinall
GCC
countri
es.
LI
CNEPAL
Aj
ointv
ent
urecompanyf
ormedi
n2001wi
tht
heVi
shal
GroupofI
ndust
ri
es,
Nepal
.
LI
CLANKA
Ajointv
ent
urecompanyf
ormedi
n2003wi
tht
heBar
tl
eetGr
oupofCompani
es,
Sri
Lanka.
LI
CHOUSI
NGFI
NANCELTD.
TheCompanyi srecogni
zedbyNat i
onal HousingBankandlistedont heNat i
onal
StockExchange( NSE)&BombaySt ockExchangeLimited(BSE).LICHousi ng
FinanceLtd.i
soneoft helargestHousingFinanceCompanyi nIndia.Incorpor
ated
on19t hJune1989undert heCompani esAct ,
1956,thecompanywaspr omotedby
LICofIndiaandwentpubl i
cint hey
ear1994.I tsmai
nobjectiv
ei stopr ovi
delong
termfinanceforconstr
ucti
onorpur chaseofhousesorapar t
ment s.IthasaDubai
offi
ce.
LI
CMUTULFUNDLTD.
Li
feInsuranceCor
porationofIndi
asetupLI CMutualFundon19thJune1989and
contr
ibut
edRs.2Cr orestowardsthecorpusoftheFund.LI
CMutualFundwas
consti
tut
edasaTr ustinaccordancewit
ht hepr
ovisi
onsoftheI
ndianTrustAct
,1882.
Therearesomeothersubsidiari
esofLICwhichare
1.LI
CMutualFundAssetManagementCompanyLt d.
2.LI
CHFLCar eHomesLt d.
3.LI
CHFLAssetManagementCompanyPr iv
ateLi
mit
ed.
4.LI
CHFLTrusteeCompanyPrivateLi
mited.
5.LI
CHFLFinanci
alSer
vicesLi
mi t
ed,et
c.
WHATI
SLI
FEI
NSURANCE?
Lifeinsur ancei sacont r actthatpl edgespay mentofanamountt ot heper sonassured
(orhi snomi nee)ont hehappeni ngoft heev entinsuredagai nst
.
Thecont racti sv alidforpay mentoft hei nsuredamountdur i
ng:
Thedat
 eofmat urit
y, or
Speci
 fi
eddat esatper iodici ntervals,or
Unf
 ortunat edeat h,ifitoccur sear l
ier.
Amongot hert hings,thecont ractalsopr ovi
desf orthepay mentofpr emium
periodicallyt ot heCor por ati
onbyt hepol icy
holder.Lifeinsurancei suni ver
sall
y
acknowl edgedt obeani nstit
ut i
on, whichel iminates'ri
sk',substi
tutingcer t
aintyf
or
uncer tai
nt yandcomest othet i
mel yaidoft hefami l
yintheunf ortunat eeventofdeath
ofthebr eadwi nner .
Byandl ar ge,lifeinsur ancei sci v i
li
zat i
on’spar t
ialsoluti
ont othepr obl emscausedby
deat h.Lifeinsur ance, inshor t, i
sconcer nedwi thtwohazar dsthatst andacr osst
he
l
ife-pathofev eryper son:
1.Thatofdy ingpr emat urelyleav esadependentf ami l
ytof endfori tself
.
2.Thatofl i
vingt il
l ol
dagewi thoutv isi
blemeansofsuppor t.
Li
feI
nsur
anceVs.Ot
herSav
ings
Cont
ractofI
nsur
ance:
Acont ractofinsur anceisacontractofut mostgoodf ait
ht echnical
lyknownas
uberri
maf i
des.Thedoct r
ineofdisclosingall
mat erialfactsisembodi edinthis
i
mpor tantprinciple,whichappli
estoal lfor
msofi nsurance.
Atthet i
meoft akingapol i
cy,pol
icyholdershouldensur ethatal lquest i
onsinthe
proposal f
orm ar ecor r
ectl
yanswer ed.Anymi srepresentation,non-disclosur
eorfraud
i
nanydocumentl eadingtotheaccept anceofther i
skwoul drenderthei nsurance
contr
actnul landv oi
d.
Pr
otect
ion:
Savingst
hroughl
ifei
nsuranceguar anteefull
protect
ionagainstr
iskofdeathofthe
saver.Al
so,i
ncaseofdemi se,li
feinsuranceassurespaymentoft heenti
reamount
assured(wi
thbonuseswher everappli
cable)whereasinothersavingsschemes,
only
theamountsaved(wit
hinterest)ispayable.
Ai
dtoThr
if
t:
Lif
einsuranceencour ages' t
hrift'
.I
tallowslong- t
erm savingssincepay mentscanbe
madeef fortl
esslybecauseoft he'easyinstall
ment '
facil
i
t ybuil
tint
ot hescheme.
(Premium paymentf orinsurancei seithermont hly,
quarterly
,halfyearlyory ear
ly)
.
Forexampl e:TheSalarySav ingSchemepopul arl
yknownasSSSpr ov idesa
convenientmet hodofpay ingpr emium eachmont hbydeduct i
onfrom one' ssalar
y.I
n
thi
scaset heempl oyerdi r
ectlypay sthededuct edpremium t oLIC.TheSal arySaving
Schemei sideal f
oranyi nsti
tutionorest abl
ishmentsubj ecttospecifiedtermsand
condit
ions.
Li
qui
dit
y:
Incaseofinsurance,
iti
seasytoacquir
eloansonthesol
esecur
it
yofanypoli
cythat
hasacquiredloanval
ue.Besi
des,ali
fei
nsurancepol
icyi
sal
sogener
all
yacceptedas
securi
ty,
ev enforacommerci
alloan.
TaxRel
ief
:
Li
feInsurancei sthebestwayt oenjoytaxdeducti
onsonincomet axandwealt
htax.
Thisi
sav ail
ablef oramountspaidbywayofpr emium forl
ifeinsurancesubj
ectt
o
i
ncomet axr atesinforce.
Assessescanal soavailofpr
ovisi
onsinthelawfortaxrel
ief.Insuchcasesthe
assuredi
nef fectpay salowerpremium fori
nsurancethanot her
wise.
MoneyWhenYouNeedI
t:
Apol icythathasasui tableinsuranceplanoracombi nati
onofdifferentplanscanbe
effectivel
yusedt omeetcer t
ainmonet aryneedst hatmayar i
sefrom time-to-t
ime.
Children'seducat ion,
start-i
n-l
if
eormar r
iageprovisionorevenperiodicalneedsfor
cashov erast retchoftimecanbel essstressfulwiththehelpofthesepol ici
es.
Alternatively,
policymoneycanbemadeav ail
abl
eatt hetimeofone'sr et
irement
fr
om ser viceandusedf oranyspeci f
icpurpose,suchas, pur
chaseofahouseorf or
otheri nvestment s.Al
so, l
oansar egrantedt opol
icyholdersforhousebuildingorfor
purchaseoff lats(subj
ectt ocertainconditi
ons).
WhoCanBuyAPol
icy
?
Anyper sonwhohasat t
ainedmaj ori
tyandiseligi
bletoenterintoav ali
dcontractcan
i
nsurehi msel
f/her
sel
fandt hoseinwhom he/ shehasi nsurabl
ei nter
est.
Poli
ciescanalsobetaken,subjecttocertai
nconditions,onthelifeofone'sspouseor
chil
dren.Whil
eunderwrit
ingproposals,cert
ainfactorssuchast hepolicyhol
der’s
stat
eofheal t
h,thepr
oponent '
sincomeandot herr
elevantfactorsareconsideredby
theCorporati
on.
I
nsur
anceForWomen
Pr
iortonati
onali
zati
on(1956),
manyprivateinsurancecompanieswouldoffer
i
nsurancetofemaleli
veswithsomeextrapremi um oronrest
ri
cti
vecondit
ions.
Howev er
,af
ternati
onal
izat
ionofl
if
einsurance,thetermsunderwhichl
ifeinsur
ance
i
sgr ant
edt ofemalel
iveshavebeenrevi
ewedf rom t
ime-
to-t
ime.
Atpresent,womenwhowor kandearnani ncomear etr
eatedatparwit
hmen.I
nother
cases,arestr
ict
ivecl
auseisimposed,onlyiftheageofthefemaleisupto30y
ear
s
andifshedoesnothav eanincomeat t
ractingIncomeTax .
Medi
calAndNon-
Medi
calSchemes
Lif
einsuranceisnormallyoffer
edafteramedicalexaminat
ionofthel
if
etobe
assured.Howev er
,tofacil
i
tategreat
erspreadofinsur
anceandalsotoavoid
i
nconv eni
ence,LIChasbeenext endi
nginsurancecoverwit
houtanymedical
examinati
on,subjectt
ocer tai
nconditi
ons.
Wi
thPr
ofi
tAndWi
thoutPr
ofi
tPl
ans
Ani nsurancepol i
cycanbe'with'or'wi
thout'
profi
t.I
nthef or
mer,bonusesdiscl
osed,
i
fany ,af
terper i
odicalval
uat
ionsar eal
lott
edtothepolicyandarepay ableal
ongwith
thecont ract edamount.
I
n' without 'prof
itplant
hecontractedamounti spaidwithoutanyadditi
on.The
premi um r atechargedfora'
wit h'
profi
tpoli
cyistheref
orehigherthanfora'wit
hout
'
profitpolicy.
Key
manI
nsur
ance
Keymaninsuranceist
akenbyabusinessfi
rm ont
hel
if
eofkeyemploy
ee(s)to
prot
ectt
hef i
rm agai
nstf
inanci
all
osses,
whichmayoccurduet
otheprematur
e
demiseoftheKeyman.
OBJECTI
VESOFLI
C

Spr
eadLi
feI
nsur
ancewi
del
yandi
npar
ti
cul
art
other
ural
areasandt
othe
soci all
yandeconomi callybackwar dclasseswi t
hav i
ewt or eachi ngal linsur able
personsi nt hecount ryandpr ovidingthem adequat efinancial cov eragai nstdeat hata
reasonabl ecost .
Maxi
 mi zemobi li
zat ionofpeopl e'
ssav ingsbymaki nginsur ance- l
inked
sav i
ngsadequat elyat t
ractive.
Beari
 nmi nd, int hei nv estmentoff unds, theprimaryobl igationt oi ts
policy holders, whosemoneyi thol dsintrust ,wit
houtlosingsi ghtoft hei nterestof
thecommuni tyasawhol e;thef undst obedepl oyedtot hebestadv antageoft he
i
nv est orsaswel l ast hecommuni t
yasawhol e,keepingi nviewnat ional priori
ti
esand
obligat ionsofat t
ract iver eturn.
Conductbusi
 nesswi thut mosteconomyandwi ththef ullr
eal izationt hatt he
money sbelongt ot hepol i
cyholders.
Actast
 rusteesoft hei nsuredpubl i
cint heirindi
v i
dualandcol l
ective
capaci ti
es.
Meett
 hev ariousl ifei nsuranceneedsoft hecommuni tythatwoul dar isei nthe
changi ngsoci alandeconomi cenv i
ronment .
I
nv olveal lpeopl ewor kingintheCor porationt othebestoft hei rcapabi l
it
yi n
further i
ngt hei nter est soft heinsur edpubl icbypr ovi
dingef ficientser v
icewi th
cour tesy .
Pr
 omot eamongstal lagentsandempl oy eesoft heCor porat ionasenseof
participat i
on, pri
deandj obsat i
sf acti
ont hroughdi schargeoft hei rdut i
eswi th
dedi cat i
ont owar dsachi evementofCor por at
eObj ecti
ve.
MI
SSI
ON/
VISSI
ON
MI
SSI
ON
"Expl
oreandenhancet hequal i
tyofl
if
eofpeoplethr
oughfi
nanci
alsecuri
tyby
provi
dingproductsandservicesofaspir
edatt
ri
buteswit
hcompetit
iveret
urns,
andby
render
ingresourcesforeconomi cdevel
opment.
"
VI
SSI
ON
"Atr
ans-
nat
ional
lycompet
it
ivef
inanci
alcongl
omer
ateofsi
gni
fi
cancet
osoci
eti
es
andPri
deofIndi
a."
BOARDOFDI
RECTORS
Member
sont
heBoardoftheCorpor
ati
on
1.Chai
rman:Shr
i.T.
S.Vij
ayan
2.Managi
ngDirector :Shri.D.K.Mehrotr
a
3.Managi
ngDirector :Shri.ThomasMat hewT.
4.Managi
ngDirector :Shri.A.K.Dasgupta
5.Fi
nanceSecret
ary :Shri.AshokChawl a(Minist
ryofFi
nance,Govt
.ofI
ndi
a)
6.Addi
ti
onalSecretar y:Shri.G.C.Chat
urvedi(
DepartmentofFi
nanci
al
Ser
vices,
Mini
str
yofFi
nance,
Govt
.ofI
ndia.
)
7.Chai r
mancum Managi ngDir
ector:Shr
i.YogeshLohi
ya(
GICofI
ndi
a)
8.Chai
rman&Managi
ngDi
rect
or:Shr
i.T.
C.VenkatSubr
amani
an(
Expor
t
I
mportBankofI ndi
a)
9.Dr.SooranadRajashekhr
an
10.Shri
.Moni
sR.Ki
dwai
AWARDSANDACHI VEMENTS
BrandEquityMostTr ustedBr and
2009Topi nInsuranceCat egor y
GoldenPeacockI nnovativ
ePr oduct/
Servi
ceAwar d–2009
Loyalt
yAwar ds-2009
ReadersDigestTr ust
edBr andAwar d
2009inthePl ati
num category
CNBCAwaazConsumerAwar ds2008
NDTVPr ofi
tBusi nessLeader ship
Award2008
INDY'sSi
lverAwar dforBest
Corporat
eFilm
INDY'sSi
lverAwar dforBesti n
HouseMagazi ne
ITUSER2008NASCOM Sel ectedBusinessSuperbr
andI
ndi
a
2008
ASIABRANDCONGRESSBRAND
LEADERSHI PAWARD2008
Pit
chAwar d-"Rank1"I ndi a'sTop
50serviceBrands
Loyalt
yAwar ds2008-I nsur ance
Sector
SKOCHChal l
enger sAwar d2008f or
JeevanMadhur
ReadersDigestTr ustedBr andAwar d
2008int hePlati
num cat egor y.
GoldenPeacockAwar dforExcel l
ence
i
nCor porateGov ernance
Web18Geni usoft hewebawar ds2007

CHAPTER-
3
RESEARCHMETHODOLOGY
PURPOSEOFTHESTUDY
ThepurposebehindthestudyofLI FEINSURANCECORPORATI ONOFINDIAis
tounderst
andt hecompanies’backgroundaswellast
henatureoft
hevari
ousproduct
s
off
eredovermanyy earsi
nI ndi
a.Purposeistostudyt
heproduct
sandthei
rbenefi
ts
tocust
omer s.Thisgi
vesabr i
efideaofthenatur
eofproduct
softhecompany.
OBJECTI
VESOFTHESTUDY
Theobject
ivesbehindthest
udyoftheplansandpol
ici
esofLIFEINSURANCE
CORPORATI ONOFI NDIAare:
1.Toimpartknowledgeaboutthehi
stor
yandobject
ivesofthecompanyandal
soi
ts
dif
fer
entsubsidi
ari
es.
2.Toawaret her
eadersaboutthedi
ffer
entpl
ansandpolici
esprovi
dedbyLI
C,t
her
e
val
ueandbenef i
tstoit
scustomers.
METHODOLOGY
DATACOLLECTI
ON:
Allt
heinfor
mat i
onpr ovi
dedonLIFEINSURANCECORPORATI ONOFI NDI
Ain
theproj
ectreporthasbeencoll
ectedthr
oughsecondaryr
esources.Nosurv
eyhas
beenconductedt ocoll
ecti
nfor
mat i
onfort
hestudy.Ther
efor
eonlysecondarydat
ais
usedinthestudy.
STATI
CALTOOLS:
Secondaryresour
cesusedinthestudyfori
nformationcoll
ecti
onisint
ernetand
magazines.Magazines&websit
eshav ebeenusedandt heinf
ormati
onretri
evedfr
om
thesesourcesist
hengather
edint hi
sproj
ect.Othertoolsusedint
hestudywhi char
e
usedinthepreparat
ionoft
heprojectaf
tercoll
ecti
ngi nf
ormati
onare:
1.MSWor d
2.MSExcel

CHAPTER-
4
POLI
CI
POLI
CI
ES
ES(
SCHEMES)
Li
feInsuranceCorporati
onofI ndi
apr
ovi
desnumberofproduct
stoi
tscost
umer
s.
LI
Cdi ff
erenti
atedthei
rpoli
ciesint
ofi
vedi
ff
erentt
ypeswhichar
e:
1.I
nsurancePl ans
2.PensionPlans
3.UnitPlans
4.SpecialPl
ans
5.GroupScheme
I
NSURANCEPLANS
Asindivi
dual sitisi
nherentt odif
fer.Eachi ndiv
idual’
si nsuranceneedsand
requir
ement sar ediff
erentfrom thatoftheot hers.LICsI nsurancePlansarepol
ici
es
thattal
ktoy oui ndi
viduall
yandgi vey outhemostsui tableopt i
onsthatcanfi
tyour
requir
ement .
JeevanAnur agKomalJeev an
CDAEndowmentVest ingAt21Mar ri
ageEndowmentOr
CDAEndowmentVest ingAt18Educat i
onal AnnuityPl an
JeevanKi shoreJeev anChhay a
ChildCareerPl anChi l
dFut urePlan
ChildFortunePl us
JeevanAadhar
JeevanVi shwas
TheEndowmentAssur ancePol i
cy
TheEndowmentAssur ancePol i
cy-LimitedPay ment
JeevanMi tra(DoubleCov erEndowmentPl an)
JeevanMi tra(Tripl
eCov erEndowmentPl an)
JeevanAnand
NewJanar akshaPl an
JeevanAmr it
JeevanShr ee-I
JeevanPr amukh
TheMoneyBackPol i
cy -
20Year s
TheMoneyBackPol i
cy -
25Year s
JeevanSur abhi -
15Year s
JeevanSur abhi -
20Year s
JeevanSur abhi -
25Year s
BimaBachat
JeevanBhar ati-I
TheWhol eLi fePolicy
TheWhol eLi fePolicy-LimitedPay ment
TheWhol eLi fePolicy-SinglePremi um
Jeev
anAnand
Jeev
anTar ang
TwoYearTempor ar
yAssurancePoli
cy
TheConv er
tibl
eTerm AssurancePol
icy
AnmolJeev an-I
AmulyaJeev an-
I
Jeev
anSaat hiPlus
Jeev
anSaat hi
MortgageRedempt i
on
PENSI
ONPLANS
PensionPlansareIndi
vi
dual Pl
ansthatgazeint
oy ourfut
ureandfor
eseefinanci
al
stabi
li
tyduri
ng
youroldage.Thesepoli
ciesaremostsuitedforseniorci
ti
zensandthoseplanni
nga
securefut
ure,so
thatyounevergiveupont hebestt
hingsinli
fe.
JeevanNidhi
JeevanAkshay -
VI
NewJeev anDhar a-
I
NewJeev anSuraksha-I
UNI
TPLANS
Unitplansar einvestmentpl
ansforthosewhoreal
izethewort
hofhard-ear
ned
money .Theseplanshelpyouseey oursavi
ngsyi
eldri
chbenef
itsandhelpyousav
e
taxev enifyoudon' thav
econsist
entincome.
Mar ketPlusI
ProfitPlus
FortunePl us
MoneyPl us-I
Chil
dFor t
unePl us
SPCI
ALPLANS
LI
C’sSpeci al
Plansarenotpl
ansbutopport
uniti
esthatknockonyourdooroncei
na
l
ifet
ime.Thesepl ansar
eaperfectbl
endofinsur
ance,invest
mentandalif
eti
meof
happiness!
NewBi maGol d
HealthProtecti
onPlus
HealthPlus
BimaNi vesh2005
JeevanSar al
JeevanMadhur
GROUPSCHEME
GroupInsuranceSchemeisli
feinsuranceprotect
iontogroupsofpeopl
e.Thi
s
schemeisidealforemployer
s,associat
ions,soci
eti
esetc.andal
lowsyoutoenj
oy
groupbenefit
satreall
ylowcosts.
GroupLIC'sSuperannuati
onPlus
GroupTermI nsuranceSchemes
GroupInsuranceSchemei nLieuOfEDLI
GroupGr at
uityScheme
JeevanMangal
GroupSuperAnnuat ionScheme
GroupSav i
ngsLi nkedI nsuranceScheme
GroupLeav eEncashmentScheme
GroupMor tgageRedempt i
onAssuranceScheme
Gratui
tyPlus
GroupCr i
ti
calIll
nessRi der
JanaShreeBimaYoj ana( JBY)
ShikshaSahay ogYoj ana
Aam AdmiBi maYoj ana
PRODUCTSBYLI
C
I
NSURANCEPLANS
1.JeevanAnand
Feat
ures
Productsummar y:
Thisplani sacombi nat i
onofEndowmentAssur anceandWhol eLi feplans.It
provi
desf inancial protect
ionagainstdeat ht hroughoutthelif
etimeoft helif
eassured
withthepr ovisi
onofpay mentofal umpsum att heendoft hesel ectedtermi ncaseof
hi
ssur vival.
Premium:
Premiumsar epay ableyearl
y,half-y
early
, quarterl
y,mont hl
yort hroughsal ary
deductionsasopt edbyy outhroughoutt hesel ectedter
m oft hepol i
cyort il
learl
i
er
death.
Bonuses:
Thisisawi t
h-profitplanandpar tici
patesi nthepr ofi
tsoftheCor poration’
sl i
fe
i
nsurancebusi ness.I tgetsashar eofthepr ofi
tsintheform ofbonuses.Si mple
ReversionaryBonusesar edeclaredpert housandSum Assur edannual l
yatt heendof
eachf i
nancial year.Oncedecl ared,theyfor m partoftheguar anteedbenef it
soft he
pl
an.Bonuseswi l
lbeaddeddur i
ngt hesel ectedterm ortil
ldeath,ifitoccursearli
er.
Fi
nal (
Addi ti
onal )Bonusmayal sobepay ablepr ovidedthepol i
cyhasr unf orcert
ain
minimum per iod
Benef
it
s
Benefit
si ncaseofdeathdur i
ngt hesel
ectedterm:
TheSum Assur edalongwi ththev est
edbonusesi spayableondeathinalumpsum.
Benefit
si ncaseofsurvi
v altotheendofsel ectedterm:
TheSum Assur edalongwi ththev est
edbonusesi spayableinalumpsum onsurvi
val
totheendoft heterm.Anaddi t
ionalSum Assuredispayableondeathther
eaf
ter
.
AccidentBenefit
:
AnadditionalSum Assured( subjectt
oalimitofRs.5lakh)ispayabl
einalumpsum
ondeathduet oaccidentupt oage70ofl i
feassured.I
ncaseofper manentdi
sabi
li
ty
oftheli
feassuredduet oacci dentthi
sadditi
onalSum assuredispayablei
n
i
nstall
ment s.
Supplement ar
y/Ext
raBenef its:
Thesear etheopt i
onal benefit
st hatcanbeaddedt oy ourbasi cplanf orext ra
protect i
on/opt i
on.Anaddi ti
onal premi um isrequi redt obepai dfort hesebenef i
ts.
SurrenderVal ue:
Buy ingal if
einsur ancecont ractisal ong-term commi tment .Howev er,surrender
valuesar eav ailableont heplanonear l
iertermi nationoft hecont ract .
Guar anteedSur renderVal ue:
Thepol i
cymaybesur render edaf t
eri thasbeeni nf orcef or3y earsormor e.The
guar anteedsur renderv alueis30%oft hebasi cpr emi umspai dexcl udingthef i
rst
year ’
spr emium.Anyext rapremi um( s)paidandpr emi um( s)towar dsAcci dent
Benef itarealsoexcl uded.
Cor poration’spol i
cyonsur r
ender s:
Inpr acti
ce, t
heCor por ati
onwi llpayaSpeci alSur renderVal ue–whi chi seitherequal
toormor ethant heGuar anteedSur renderVal ue.Thebenef itpayabl eonsur render
refl
ect sthedi scount edv al
ueoft her educedcl aim amountt hatwoul dbepay ableon
deat horatmat uri
ty.Thi svaluewi lldependont hedur at
ionf orwhi chpr emi umshav e
beenpai dandt hepol i
cydur ationatt hedat eofsur render.Insomeci r
cumst ances,i
n
caseofear lyter minationoft hepol icy ,
thesur renderv al
uepay ablemaybel esst han
thet otalpremi um pai d.
2.Jeev
anShr
ee-
I
Pr
oductsummar
y:
ThisisanEndowmentAssur ancepl anoffer i
ngt hechoi ceofmanyconv enient
premiumspay i
ngt erms.Itprovidesf i
nancial protectionagai nstdeatht hroughoutt he
term ofpl anwi t
ht hepay mentofmat uri
tyamountonsur vi
val t
otheendoft hepol i
cy
term.
Premi ums:
Premi umsar epay ableyearl
y,half-
yearly
, quarterlyort hroughSal arydeduct ions,as
optedbyy ou, t
hroughoutt hepremi um pay ingt erm ort i
l
l earl
ierdeath.Al ter
nativel
y
premium maybepai dinonel umpsum ( Singlepr emi um) .
Guarant eedAddi tions:
Thepol icypr ovi
desf ortheGuar anteedAddi ti
onsatt herateofRs.50/ -pert housand
Sum Assur edforeachcompl etedy earforf ir
stf i
vey earsoft hepol i
cy.The
Guarant eedAddi tionsarepay ablealongwi t htheBasi cSum Assur edatt het i
meof
clai
m.
Bonuses:
Thepol icypar t
ici
pat esinthepr of
itsoftheCor por at
ion’sl i
feinsurancebusi nessf rom
the6thy earonwar ds.Itwill
getashar eoft hepr ofit
si nthef orm ofbonuses.Si mpl e
Reversionar yBonuseswi l
lbedecl aredpert housandBasi cSum Assur edannual l
yat
theendofeachf inancialyear.Oncedecl ared, theywi llf
or m partoftheguar anteed
benefitsoft heplan.
Benef
it
s
DeathBenefi
t:
TheSum Assuredal
ongwi
thguar
anteedaddit
ionsandvestedbonuses,ifany
,is
payabl
einalumpsum ondeat
hoftheli
feassureddur
ingthepolicyter
m.
Maturi
tyBenefi
t:
TheSum Assuredal
ongwi
thguar
anteedaddit
ionsandreversi
onarybonuses,i
fany
i
spay ablei nal umpsum onsur vivaltot heendoft hepol i
cyt erm.
Suppl ement ary /ExtraBenef its:
Thesear et heopt i
onal benef it
st hatcanbeaddedt oy ourbasi cpl anf orext ra
protect i
on/ opt i
on.Anaddi tional premi um i srequiredt obepai dfort hesebenef i
ts.
SurrenderVal ue:
Buy ingal if
ei nsur ancecont ractisal ong- term commi tment .Howev er,surrender
valuei sav ail
abl eont hepl anonear li
ert erminationoft hecont ract.
Guar anteedSur renderVal ue:
Thepol i
cymaybesur r ender edaf t
eri thasbeeni nf orcef or3y ear sormor e.The
guar anteedsur renderv aluei s30%oft hebasi cpr emi umspai dexcl udingthef i
rst
year ’
spr emi um.I ncaseofasi nglepr emi um pol i
cyt heguar anteedsur renderv alueis
90%oft hesi nglepr emi um pai dexcl udinganyex trapr emi um.
Cor poration’spol i
cyonsur r
ender s:
Inpr acti
ce, theCor por at i
onwi llpayaSpeci alSurrenderVal ue–whi chi seitherequal
toormor ethant heGuar anteedSur renderVal ue.Thebenef itpay abl eonsur render
refl
ect sthedi scount edv alueoft her educedcl aim amountt hatwoul dbepay ableon
deat horatmat uri
ty.Thi sv aluewi lldependont hedur at i
onf orwhi chpr emi umshav e
beenpai dandt hepol icydur at i
onatt hedat eofsur r
ender .Insomeci r
cumst ances,i
n
caseofear l
yt er minationoft hepol icy ,
thesur r
enderv aluepay ablemaybel esst han
thet otalpremi um pai d.
3.Bi
maBachat
Whati
sBi
maBachat
?
LIC’sBi maBachati samoney -
backpol i
cywhi chof fer sfinanci alsecurityand
assur ancet ot hepol icyhol derandhi sfami ly.BimaBachatr equiresthepol i
cyholder
topayonl yonepr emium.Theamountpai df orthepr emi um dependsont heduration
oft hepol icyt akenandl ifei nsur anceisav ailabletillthedat eofmat uri
ty.
Whatot herbenef itsdoIr ecei vedur i
ngt hespeci fi
eddur ati
onoft hepol i
cy?
Forat erm of9y ears: Thepol icyholderwi l
l receive15%oft hesum assur edatthe
endofev er y3r dand6t hpol icyy ear.
Forat erm 12y ears:Thepol icyhol derwillreceiv e15%oft hesum assur edattheend
ofev ery3r d, 6thand9t hpol icyy ear.
Forat erm 15y ears:Thepol icyhol derwillreceiv e15%oft hesum assur edatt heend
ofev ery3r d, 6th, 9thand12t hpol icyyear.
Whataddi tionalbenef it
sdoIgetuponmat uri
ty?
Ifthepol icyhol derout li
vest hedur ati
onoft hepol icy, atthet imeofmat ur
ity
,asingle
premi um pay ment( excludi ngext rapremium)i smadeal ongwi t
hl oyalt
yadditi
ons,if
any .
Howmuchi nsur ancedoIget ?
Thepol i
cyhol deri sinsuredf oranamountequal t
ot hesum assur ed.
Whataboutt hei nst all
mentr eceivedalready ?
Thei nsur ancecov erisirrespect iv
eoft heinst all
ment sr eceiv ed.
Whenam Iel igiblef ortheguar anteedsur renderv alue?
Theguar ant eedsur renderv aluei savail
ableonl yaf t
ercompl etionofatl eastone
policyy ear .Thi sv al
uei sequal t
o90%oft hesi ngl epr emi um pai d( excl
udingextra
premi um) .
Whatot herbenef i
tsdoest hisi nsurancecov erof fer?
BimaBachati stheonl ymoney -backpol i
cyt hatof fersaloanfacil
ity.Ther at
eof
i
nt erestfort hi
swi llbedet ermi nedf rom ti
met ot imebyt hecorpor ati
on.Presentl
ythe
rateofi nterestis9%p. a.pay abl ehalf-
yearly.
Italsoof fersotherbenef i
tsliket he15daycool ingof fperi
od,graceper iodand
revival.
Whoi sel i
giblefort hepolicy ?Ar et hereothercondi ti
onsorrestrictions?
Thef oll
owingar et herequi r
ement sthatoneneedst obeawar eofbef oreappl
yingfor
thispol i
cy :
·Theper sonappl y i
ngf orthepol icyshouldhav ecompl eted15y ear sandshouldnot
beol dert han66y ears.
·Thepol i
cywi llmat urewhent heper sonis75y ear sold.
·Ther eisachoi ceoft hreet ermst ochoosef rom ( 9,12and15y ear s)forthepoli
cy
dependi ngont heageandr equi rementoft heappl icant.
·Themi nimum sum t hatneedst obeassur edi sRs20, 000/-andt hereisnol i
miton
theamountt hatcanbeassur ed.
·Itisi mportantt onotet hatt hesum assur edshoul dbei nmulti
plesofRs5000/ -only
.
·Thepol i
cyr equiresthehol dert opayasi nglepr emium.
Pr
emi
um pay
ment
Singl
ePr emium
Thesampl epremi um ratesareasunder :
-
AgeAnnual Premi um per1000SA
91215
15716. 40771.35804. 00
20717. 20771.85804. 40
25717. 55772.25804. 95
30718. 45773.35806. 10
35721. 05775.75808. 55
40725. 80780.25812. 95
45734. 10787.60819. 60
50746. 60797.90828. 95
55762. 65811.95841. 75
60784. 80831.30859. 35
65816. 25--
Whati ncent
ivesdoIgetf orahighersum assur ed?
Let’
stakeanexampl eofa30y earoldwithaBi maBachatpolicyf
or12years.I
fthe
sum assuredisRs45, 000t henhehast opayapr emium ofRs34800.
75.Butfora
sum assuredamountofRs50, 000hewi l
lhavet opayapr emi
um ofRs36734.13
only,
thusgettinga5%r ebateinpremium.
Refertothetablebelowf orotherrebatepercentages:
LessthanRs.50, 000NI L
Rs.50,000andLesst hanRs.1
l
akh
5%
Rs.1lakhandLesst hanRs. 2
l
akh
7%
Rs.2l
akhandabov
e8%
4.TheConv
ert
ibl
eTer
m Assur
ancePol
icy
Feat
ures
Thisplanofassur ancei sdesi
gnedt omeett heneedsoft hosewhoar eini
ti
all
yunabl
e
topayt helargerpr emium requiredforaWhol eLifeorEndowmentAssur ancePoli
cy,
buthopet obeabl et opayforsuchapol i
cyinthenearf uture.
Thisplanwoul dbef oundusef ulal
soincaseswher eitisdesiredt
ol eav
ethefinal
decisi
onast othepl ant oalaterdatewhen, perhapsabet terchoi
cecouldbemade.
Poli
cyhol dersgetanopt ionofconv er
ti
nganpol i
cyintoendowmentassur anceor
l
imitedpay mentwhol elifeassurance.
Suit
ableFor :
Forallpeoplewi thear nedincomeunderCat egoryIandunear nedincomesunder
CategoryII,basicallyStandardandsub- Standardli
vesat t
racti
ngEMRcl assesIand
I
I.
Benef
it
s
Survi
valBenefit
NotApplicabl
e
DeathBenef i
t
thesum assuredispay
ableonl
yint
heev
entofdeat
hoft
heLi
feAssur
edbef
oret
he
expi
ryoft hespeci
fi
edter
m.
Pl
anpar
amet
ers
Mini
mum Maxi mum
Entr
yage20( near erbi
rthday)50
Sum assured( Rs.)50,0001,00,00,
000
Term( year
s)57
ModeofPay ment
Maximum pr emi um paying
peri
od
Poli
cyloanav ailable
Yearl
y ,
Half-
year ly
,
Quarterl
y,Mont hly,
Sal
arySav i
ng
Scheme
55year sNo
PENSI
ONPLANS
1.NewJeev
anDhar
a-I
Feat
ures
Productsummar y:
TheseareDef er
redAnnui
typlansthatall
owt hepoli
cyholdert
omakepr ovisi
onfor
regul
arincomeaf t
ert
heselectedterm.
Premiums:
Premiumsar epayabl
eyearl
y,half
-year
ly,quart
erl
y,monthlyorthr
oughSalary
deducti
on,asoptedbyyou,throughouttheterm oft
hepol i
cyorti
llear
li
erdeath.
Alternat i
vel
y ,thepremi um maybepai di nonel umpsum ( singl
epr emium).
TaxBenef i
ts:
Taxr eliefunderSect i
on80ccci savail
abl eonpr emiumspai dunderNewJeev an
SurakshaI( Tabl eNo.147) .Thepr emiumspai dunderNewJeev anDhar aI( Tabl
e
No. 148)qual ifyfortaxr el
iefunderSect ion88.
Bonuses:
Thesear ewi th-profi
tplansandpar t
icipateinthepr ofi
tsoftheCor por
ation’sannuit
y/
pensi onbusi ness.Pol i
ciesgetashar eoft hepr ofi
tsintheform ofbonuses.Si mpl
e
Rev ersionaryBonusesar edeclaredpert housandSum Assur edannuallyatt heendof
eachf i
nancial year.Oncedecl ared,theyf orm partoftheguaranteedbenef it
softhe
plan.Final (Addi t
ional
)Bonusesmayal sobepay ableprovi
dedpolicyhasr unfora
certainmi nimum per i
od.
Benef
it
s
Deat hBenef i
t:
Ondeat hoft heLi feAssur eddur i
ngt het erm oft hepol icythebasi cpr emiumspai d,
excludi nganyr iderpr emi umsorext r
apr emi ums, upt ot hedat eofdeat haccumul at
ed
withi nt erestatsuchr atesasdeci dedbyt heCor porationwi llbepay abl etot he
nomi nee.Cur rent l
y ,thei nterestr at eis3%, 4%or5%i ft hedeat hoccur swi thint he
fi
rst10y ear s,20y ear sort her eaft err espect i
v ely.
Mat ur ityBenef it:
Atmat ur i
tyt hepol icy holdercanencashupt oamaxi mum 25%oft hemat ur it
y
proceedsasat ax-freel umpsum.Thebal anceshoul dbecompul sor i
lyconv ertedtoan
annui t
yatt her atesappl i
cabl eatt het i
meofmat uri
tyoft hepol icy.Thepol i
cy holder
hast hechoi ceofopt i
ngf oranyoneof5annui tyopt i
ons.Theannui tyopt ions
availabl ear e:
(i
)annui typay abl ef orremai nderofl i
fe
(i
i)annui typay ablef orl if
ewi t
hguar ant eedper iodof5, 10,15or20y ear s
(i
ii
)Joi ntl ifeandl astsur v i
vorannui tytot heannui tantandhi s/herspouseunder
whi channui typay abl et ot hespouseondeat hoft hepur chaserwi l
l be50%oft hat
pay abl et ot heannui tant
(i
v)Li f
eannui t
ywi thar eturnofpur chasepr i
ceondeat hoft heannui tant
(v)Li feannui tyincr easi ngatasi mpl erat eof3%perannum
Suppl ement ary /Extr aBenef it
s:
Thesear et heopt ional benef i
tst hatcanbeaddedt oy ourbasi cpl anf orext ra
protect ion/ opt i
on.Anaddi ti
onal pr emi um i srequi r
edt obepai df orthesebenef i
ts.
Surr enderVal ue:
Buy ingal i
fei nsur ancecont racti sal ong- term commi tment .Howev er, surr
ender
valuei sav ailableont hepl anonear li
ert erminat ionoft hecont ract.
Guar ant eedSur renderVal ue:
Thepol icymaybesur render edaf teri thasbeeni nf orcef or2y ear sormor ebut
befor et hev estingdat e.Theguar ant eedsur renderv aluei s90%oft hebasi c
premi umspai dexcl udi ngt hef irsty ear’spr emi um.I ncaseofasi nglepr emi um
policyt heguar anteedsur renderv al ueisal l
owedaf ter2y earsfr om t hedat eof
commencementoft hepol icy.
Cor por at ion’ spol icyonsur render s:
I
npr actice, t
hecompanywi ll
payaSpeci alSurrenderValue–whi chisequal toor
higherthant heGuar anteedSurrenderValue.Thebenef i
tpayabl
eonsur renderref
lect
s
thediscount edv al
ueoft hereducedclai
m amountt hatwouldbepay ableondeat hor
atmat urity.Thisval
uewi ll
dependont hedur ati
onf orwhichpr
emi umshav ebeen
paidandt hepolicydurati
onatthedat eofsurrender.Insomecircumst ances,incase
ofear l
yt erminati
onoft hepoli
cy,thesurrendervaluepayablemaybel esst hanthe
totalpremi um paid.
UNI
TPLANS-
I
1.Mar
ketpl
us-
I
Thisi sauni tlinkedpensi onpl anwher ei nt hepensi oni spay ableaf teraspeci fied
period.Fourt ypesofi nvestmentFundsnamel yBond, Secur ed, Balancedand
Growt hFundar eof f
er ed.Thoughpr imar ilyaPensi onpr oduct ,thepl anhasmany
attract i
v ef eatur esandopt ionswhi chmakei tani dealRet ir
ementsol utionf ort he
future.
BENEFI TS
A)-OnVest ing:
Onv est ingoft hepol icy,theFundVal uewi l
l beut i
li
zedt opr ovideapensi onbased
ont het henpr ev aili
ngAnnui t
yr ates.Anopt i
ont ocommut eupt oonet hi rdoft he
pay abl ebenef i
tinal umpsum i sav ailabl e.
B)OnDeat h:
I
nev entoft heunf or tunatedeat hoft hepol icyhol dertheFundVal ueal ongwi tht he
Rider s, i
fany ,wi llbepay ablei nal umpsum orasapensi on.
OPTI ONS
Threeat tractivebenef it
s,v i
z.-LifeCov er ,Acci dentBenef itandCr iti
cal Il
lness
Benef i
tar eav ai l
ableasopt i
onsorr ider s.Li feopt i
onisav ail
ablewi thincer tainl i
mits
dependi ngont heageatent ryoft helifeassur ed.Theot heropt i
onsar eav ailabl etoall
proposer swhohav eopt edf orLifeCov er .Thequant um oft her i
skcov erscanal sobe
reduced; subj ectt ot hemi nimum l imits, onceay ear.Apol icycanbet akenwi thout
anyoft her ider sal so.
REVI VAL
Anat tract ivef eatur eoft hepl ani sthatpr ov idedt hepremi umshav ebeenpai df ora
mini mum per i
odoft hreey ear s,allther idersundert hepol icywi llcont i
nuef ora
periodoft woy earsf rom t heduedat eoff irstunpaidpr emi um bydeduct ionof
rel
ev antchar gesf rom t hepol icyf und.Thi sper i
odoft woy earsi scal ledt he“ Rev i
val
Period” .Fur ther ,i
fpr emi umshav ebeenpai dforami nimum per iodoft hreey ear s,
revival canbeef fect edmer elybypay ingt hear rearsofpr emi um, withi nt heRev ival
Period.
PAYMENTOFPREMI UMS
Premi umscanbepai dinal umpsum ( singl epr emium)andal sobymont hl
y( ECS) ,
quar terly ,half-year l
yandy earlymodes.
CHANGEI NFUNDTYPE( SWI TCH)
Thepl anal soal l
owsapol i
cyhol dert oswi t
chf r
om onet ypeoff undt oanot herupt o
fourt imesay ear ,freeofchar ge.
OTHERFEAUTRES
Ther ewi llbenospr eadbet weent heBi dandOf ferpri
ce.TheNetAssetVal ue( NAV)
wil
lbedeclar
edonadail
ybasis.Addi
ti
onalpremium inmulti
plesofRs.
1,000canbe
pai
dwithoutanyl
i
mitatany
timedur i
ngtheterm ofpoli
cy.
SPECI
ALPLANS
1.Bi
maNi
vesh
Feat
ures
BimaNi vesh2005i sapl anwi t
hcompoundr at
eofguar anteedaddi t
ionsandl oyalt
y
additi
ons.Thi sisther evi
sedv ersionofourpopul arBi maNi veshPlan2004andi s
i
ntroducedt omeett heov erwhelmi ngdemandf orasi ngl
epr emium planf r
om our
customer s.Itisasingl epr emium, idealinvestmentplanfort hosewhohav eno
regulari
ncomebutgoodper iodicalincome.Bi maNiv esh2005i sav ail
ableforterms
5and10y ears.Theguar anteedsur renderv al
ueispay abl
eaf terthepolicyhasrunf or
atleastoney ear.Ter m AssuranceRi derisalsoavai
lablebypay mentofasi ngle
premi um attheopt ionoft hepr oposer .
Benef
it
s
Guar ant eedAddi tions:Guar ant eedaddi t
ionsatt hecompoundr ateofRs.50per
thousandSum Assur edperannum f orthepol icywi t
ht erm of5y earsandatt he
compoundr at eofRs. 55pert housandSum Assur edperannum f orthepol i
cywi th
term of10y ear s.
Loy alt yAddi tion:Dependi ngupont heCor porat i
on'sexper i
encewi thregardto
mor t
al i
ty ,i
nterestandexpensesandbasedont erm oft hepoli
cy ,Loyalt
yaddition,if
any ,maybedecl aredbyt hecor por ati
onandpai donmat uri
ty.
Mat urityBenef it:TheBasi cSum Assur edal ongwi thcompoundedGuar anteed
Addi tionswi l
l bepay abl e.Loy altyaddi ti
on, ifany ,willal
sobeaddedt othisbenefit.
Pay mentondeat h:Incaseoft heunf ortunat edeat hoft heLifeAssur eddur i
ngt he
term oft hepol i
cy ,Sum Assur edal ongwi tht heaccr uedguar anteedaddi ti
onswi llbe
pay abl e.
Sur renderVal ue:Sur renderv aluei spay ableaf terthepol i
cyhasr unatl eastfor
oney ear .
Rider s:Ter m Assur ancer i
deri sav ailable.
Eligibilitycondi tionsandot herr estri
ct i
ons
Fort heMai nPl anTer m Assur anceOpt i
on
Mi n.Ageatent ry13y ear scompl eted18y ear scompl eted
Max.Ageatent r
y70y ear s50y ears
Max.Mat uri
tyAge75y ears60y ears
Pol i
cyTer m 5y rs.and10y rsSameasmai npl an
Sum Assur edRs. 25, 000.
Maxi mum –No
l
imi t.
Mi n.Sum Assur ed-Rs. 1,00,000/ -
Max.Sum Assur ed-Anamountup
tot hebasi cSum Assur edf orTer m
Assur ancesubj ectt oamaxi mum of
Rs. 25l akhov erall Opt ionl imit,
underal lpoli
ciesoft hel i
fe
assur ed.
Premi um Rat es:
Singl
ePr emi um r atesforRs.
1000Sum Assur edareRs. 995for5yearsterm andRs.
976f or10y ear sterm;
TheTer m RiderPr emium dependsontheagenear erbirthdayandtheterm ofthe
poli
cy .
REBATES
1%ofbasi cpr emi um onthepremium i
nexcessofRs. 50,000.
Rs.500plus1. 5%ofbasi cpremium onthepremium inexcessofRs. 1,
00,000.
LOAN
Loanwi ll
beav ai
l
abl etothepoli
cyhol
dersunderthi
spl anwi t
hint
heSur r
ender
Value.
GROUPSCHEME
1.Gr
oupTer
mInsur
anceScheme
A)Nat ureoft heScheme:
Group( term)I nsur anceSchemei smeantt opr ov idel if
ei nsurancepr otect i
ont o
groupsofpeopl e.Admi nistr
at ionoft heschemei songr oupbasi sandcosti slow.
UnderGr oup( Ter m)I nsuranceScheme, li
feinsur ancecov erisallowedt oal l t
he
member sofagr oupsubj ectt osomesi mpleinsur abi li
tycondi ti
onswi thouti nsisting
uponanymedi cal ev i
dence.Schemeof ferscov ersonl yondeat handt her ei sno
mat urityv alueatt heendoft het erm.
B)Pr emi um Char geabl e:
Group( Ter m)I nsur anceSchemei satpr esentof f
er edunderOneYearRenewabl e
Groupt erm assur ancepl an( OYRGTA) .Everyy earonAnnual Renewal dateLI C
chargest hepr emi um dependi ngupont hechangesi nsizeandagedi stri
but ionoft he
agegr oup.
C)Di fferentSchemes:
Group( term)I nsur anceSchemehasanumberofv arieties.TheSchememaypr ovide
forauni form cov ert oal lmember soft hegrouporgr adedcov ersf ordifferent
categor iesofmember s,cov erf oral lamount sofout standi nghousi ngl oansorv ehicl
e
advances, orsomeot herbenef its( e.
g., l
if
ecov ert osuppl ementpensi onorPF
benef i
tsi ncaseofdeat h).Theschemesmayhav eadd- onsl ikeDoubl eAcci dent
Benef i
t ,Criti
cal Il
lnessBenef i
t,Disabi li
tybenef itet c.
D)Gener alFeat uresofv ariousGr oupI nsuranceSchemes:
1.PREMI UM:
Thepr emi um undersuchschememaybewhol l
ypai dbyt heempl oy erort heNodal
Agency .Howev er,theschememaybecont r
ibut oryi .
e.themember smayal so
contribut e.
2.DOUBLEACCI DENTBENEFI T:
Doubl eAcci dentBenef i
t,i
.e.pay mentofdoubl et hesum assur edondeat hduet o
accident( withoutper manentdi sabi l
i
tybenef it
), maybeal l
owedunderGr oup
InsuranceSchemesf oranext rapr emi um.
3.ELIGI BI LITY:
ForGr oupI nsur anceSchemei nl ieuofEDLI Sthei nsur abilit
ycondi tionist hat
shouldbeamemberoft hePr ov i
dentFundSchemeoft heempl oy er.Forot herGI
Schemesofempl oy er-
empl oy eegr oupst heinsur abi l
itycondi ti
oni st hatt hemember
shouldnotbeabsentongr oundofsicknessontheentrydate.Forall
non-
employeremployee
GroupSchemest hebasi
cinsur
abili
tycondi
ti
onisthatthemembershoul d
beingoodheal t
hont hedateofentry.
4.ADMI NISTRATI ONOFTHESCHEME:
Atthecommencementandt hereaft
eroneachAnnual Renewal Date,
theGroup
Poli
cyholderwil
lhavetosendallthemember '
sdata(andparticul
arsofthenew
entr
antsfrom ti
met oti
me)totheP&GSuni tofLI
C.Det ai
ledOYRGTApr emi
um
cal
culat
ionwillbemadeoneachAnnual RenewalDate.
2.Janashr
eeBi
maYoj
ana(
JBY)
Feat
ures
Theobj ectiveoft heschemei stopr ovideli
feinsurancepr otectiont otheruraland
urbanpoorper sonsbel owpov ert
ylineandmar ginall
yabov ethepov ertyl
ine.
ELIGIBILITY:
Aper sonwhoi s
*Agedbet ween18and59y ears.
*Belowormar ginall
yabov epov ert
yline
*Amemberofanyoft heappr ovedv ocation/occupationgroups
NODALAGENCY:
ASt ateGov ernmentDepar tmentwhi chisconcernedwi t
ht hewel f
areofanysuch
vocation/occupat iongr oup, aWel f
ar eFund/Soci ety,Vil
l
agePanchay at,
NGO, Sel
f-
HelpGr oup,etc.
MINI MUM MEMBERSHI PSI ZE:
Twent yfive.
FORMSFORJANASHREEBI MAYOJANA
1.Claimf orm &di schar gereceiptunderJBY( Annexur eA)
2.Appl i
cationf orschol arshipunderShi kshaSahay ogYojana( Pr oformaA)
3.Listofst udent seligibleforscholarshipunderShi kshaSahay ogYoj ana( Pr
oforma
B)
4.Cer t
if
icateofut il
i
zat i
on(Pr oformaC)
Benef
it
s
I
nt heev entsof
*Death( otherthanbyacci dent)ofthemember ,
anamountofRs. 30,
000/ -i
spay abl
e.
*death/totalper manentdi sabil
ity
,duet oacci dent,anamountofRs.75,000/-i
s
payable.
*Permanentpar tialdisabil
it
y,duet oaccident, anamountofRs.37,500/-i
spay able.
PREMI UM:
*Thepr emi um undert heschemei sRs. 200/-perannum permember .*50%oft he
premium i .
e.Rs. 100/-wi l
lbecont ri
butedbyt hememberand/ orNodalAgency /Stat
e
Gov er
nment .
*Balance50%wi llbebor nebyt heSocial Secur i
tyFund.
APPROVEDVOCATI ON&OCCUPATI ONALGROUPS:
A)Thegr oupt hatcanbecov eredarel i
kewor kersin-
(i
)Foodst uffslikekhandsar i
(i
i)Textil
e
(i
ii
)Manuf act ur eofwoodpr oduct s
(i
v)Manuf act ur eofpaperpr oduct s
(v)Manuf actur eofl eat herpr oducts
(vi
)Pr i
nting
(vi
i)Rubberandcoal pr oduct s
(vi
ii
)Chemi cal pr oduct slikecandl emanuf actur e
(i
x)Mi neral pr oduct sl ikeear thent oysmanuf actur e
(x)Fir
ecr acker '
swor ker s
(xi
)Const ruct ionwor ker s
(xi
i)Otherr elat edcot tagei ndust r
iestobei dent if
iedbyNodal
Agenci esandot hergr oupsasi dentif
iedbyt heNodal Agencyandappr ov edbyLIC.
B)Theoccupat ionalgr oupsar e:
Beedi wor ker s, BrickKi lnWor kers(Jalandhar ),Carpent er s,Cobblers,Fi
sher man,
Hamal s,Handi craf tAr tisans, Handl oom Weav ers, Handl oom andKhadi Weav ers,
LadyTai lors, Leat herandTanner yWor kers,PapadWor kersattachedto' SEWA' ,
Phy si
call
yHandi cappedsel f-Empl oyedPer sons, Pri
mar yMi l
kPr oducers, Ri
ckshaw
Puller
s/Aut oDr i
v ers, Saf aiKar machar i
s, SaltGr ower s, TenduLeafCol l
ect or
s,
Schemef ort heUr banPoor ,ForestWor kers,Ser icult
ur e, ToddyTapper s,Power l
oom
Wor kers,Schemef orWomeni nRemot eRur al Hil
lyAreas.
PLAN’
SNAV
Thenetassetval
ueofdiff
erentschemesofli
feinsur
anceCor
por
ati
onofI
ndi
afort
he
i
nsured’
sisasfoll
ows:
NAVTABLE
NAV'SASONDATE21. 08.2009
EFFECTIVE
FOR21.08.2009
BASIC
UNIT
VALUE
NAVASON
DATE
REPURCHASE
VALUE
SALE
VALUE
BIMAPLUS( 140)
DATEOF
LAUNCH
02.02.
2001
SECUREDFUND1027. 106025.750727.1060
BALANCEDFUND1032. 485630.861332.4856
RISKFUND1044. 287442.073044.2874
FUTUREPLUS( 172)
DATEOF
LAUNCH
04.
03.2005
BONDFUND1013. 177913. 177913. 1779
I
NCOMEFUND1015. 040515. 040515. 0405
BALANCEDFUND1015. 601815. 601815. 6018
GROWTHFUND1019. 566619. 566619. 5666
JEEVANPLUS(173)
DATEOF
LAUNCH
18.
10.2005
BONDFUND1013. 172913. 172913. 1729
SECUREDFUND1013. 311913. 311913. 3119
BALANCEDFUND1013. 616713. 616713. 6167
GROWTHFUND1018. 155618. 155618. 1556
MONEYPLUS(180)
DATEOF
LAUNCH
20.
12.2006
BONDFUND1012. 448412. 448412. 4484
SECUREDFUND1011. 880411. 880411. 8804
TAXBENEFI
TS
Theaggregat
eamountofdeduct
ionunderal
ltherel
evantsect
ionsv
iz.sect
ion80C,
sect
ion80CCCandsecti
on80CCDshallnot,
exceedRs.1Lakh.
1)Deduct
ionf
rom I
ncomef
orpay
mentofPr
emi
um (
Sec.80C)
.
(
a)Li
feI
nsur
ancepr
emi
a:
Theinsur
ancepr
emiapaidforapol
icyi
seligi
blefordeduct
ion.Thepr
emi
um pai
d
shoul
dnotbeinexcessof20%ofcapit
alsum assured.
(
b)Cont
ri
but
iont
oDef
err
edAnnui
tyPl
ans:
Thepremiapai
df oraDefer
redAnnui
ty;
provi
dedsuchcontr
actdoesnotcont
aina
provi
si
ontoexerciseanopt
ionbythei
nsuredtorecei
vedacashpaymenti
nli
euof
thepaymentofannuityi
sel
igi
blef
ordeducti
on.
(
c)Cont
ri
but
iont
oPensi
on/
Annui
tyPl
ans:
Cont
ribut
iont
oNewJeev anDhara-
IandNewJeev
anAkshay
-VSchemesofLI
Car
e
qual
i
fiedforr
ebat
eunderthi
ssecti
on.
2)Incomet
axexempt
iononMat
uri
ty/
Deat
hCl
aimspr
oceedsunder
Secti
on10(
10D)
Allt
hebenefi
tspayabl
eunderaLifeInsurancepoli
cyaretaxfree.Howeverincases
thepremium pai
dinexcessof20%oft hecapit
alsum assuredwithi
nay ear,benef
it
s
paidexcessofpremi
umswi l
lbetaxable.Thebenefi
tsfrom akeymanI nsurance
poli
cyandanysum receiv
edunderSec80DD, Sub-sect
ion(3)arealsotaxable.
3)Jeev
anNidhiPl
an&NewJeev anSur
aksha-IPl
an(U/
s.80CCC)
Amountspai
dfrom t
het
axabl
eincometopremiumsoft
heabove
BALANCEDFUND1011. 657011.657011.6570
GROWTHFUND1010. 393910.393910.3939
MARKETPLUS(181)
DATEOF
LAUNCH
05.
07.2006
BONDFUND1013. 699313. 699313. 6993
SECUREDFUND1012. 874412. 874412. 8744
BALANCEDFUND1012. 560812. 560812. 5608
GROWTHFUND1012. 972312. 972312. 9723
FORTUNEPLUS( 187)
DATEOF
LAUNCH
23.
08.2007
BONDFUND1012. 038012. 038012. 0380
SECUREDFUND1011. 259211. 259211. 2592
BALANCEDFUND1010. 651410. 651410. 6514
GROWTHFUND1010. 167610. 167610. 1676
PROFITPLUS(188)
DATEOF
LAUNCH
23.
08.2007
BONDFUND1012. 328812. 328812. 3288
SECUREDFUND1010. 977910. 977910. 9779
BALANCEDFUND1011. 250911. 250911. 2509
GROWTHFUND1010. 031110. 031110. 0311
GRATUITYPLUS
DATEOF
LAUNCH
16.
06.2009
BONDFUND1012. 738212. 738212. 7382
I
NCOMEFUND1013. 262813. 262813. 2628
BALANCEDFUND1013. 073813. 073813. 0738
GROWTHFUND1012. 484512. 484512. 4845
DATEOF
annuityarededuct i
ble.
4)Deduct ionundersect ion80DMedi calPremium paidf oraHeal th
Insurancepol i
cyisdeduct ibletotheextentofRs.15000f oran
assesseeand/ orhi
sf ami l
ymember s’poli
cy/s.Aseparat eexempt i
on
totheext entofRs.15, 000f orpremiumspai df oranassessee’spar ent
i
sal soavai l
able.I
fanyoneorbot hofthepar entsareSeni orci
tizens,
thenanenhancedexempt i
onl i
mi tofRs.20,000i savai
lable.Section
80Dal socov erspaymentofpr emi um excl
usivelyforCrit
icalIl
lness
Rider.
5)Jeev anAadharPl an( Sec.80DD)
Premium pai
dforLI
C’sJeevanAadharPl
an(f
orthemaint
enanceofanhandicapped
dependent)i
sel
igi
blefordeduct
ionf
rom t
het
otali
ncometotheextentofRs.
50,000
andtotheext
entofRs.
75,000/
-wher
ehandi
cappeddependenti
ssuf
fer
ingf
rom
speci
fi
edsever
edisabi
l
ity
.
6)Exempti
oninrespectofcommutat
ionofpensi
onunderJeev
an
Suraksha&Jeev
anNi dhiPl
ans.(
Sect
ion10(10A)
:
Apay mentrecei
vedbywayofcommut ationofpensionf
rom Jeev
anSur
aksha&
Jeev anNidhiAnnui
t yplansisexemptf rom t ax
HEALTHPLUS( 901)
LAUNCH
04.02.2008
HEALTHPLUSFUND1010. 843010. 843010. 8430
MONEYPLUS-I( 193)
DATEOF
LAUNCH
22.05.2008
BONDFUND1012. 317012. 317012. 3170
SECUREDFUND1013. 059913. 059913. 0599
BALANCEDFUND1012. 918712. 918712. 9187
GROWTHFUND1012. 182312. 182312. 1823
MARKETPLUS- I(
191)
DATEOF
LAUNCH
17.06.2008
BONDFUND1011. 389711. 389711. 3897
SECUREDFUND1011. 351211. 351211. 3512
BALANCEDFUND1011. 577211. 577211. 5772
GROWTHFUND1012. 002112. 002112. 0021
CHI LDFORTUNE
PLUS( 194)
DATEOF
LAUNCH
01.11.2008
BONDFUND1010. 529210. 529210. 5292
SECUREDFUND1012. 827612. 827612. 8276
BALANCEDFUND1012. 684212. 684212. 6842
GROWTHFUND1013. 352713. 352713. 3527
HEALTH
PROTECTI ONPLUS
(902)
DATEOF
LAUNCH
29.04.2009
HEALTHPROTECTI ON
PLUSFUND
10
10.142910. 142910.1429
JEEVANSAATHI
PLUS(197)
DATEOF
LAUNCH-
29.
06.2009
.
BONDFUND1010.037610.
037610.
0376

CHAPTER-
5
FI
NDI
NGS
SECUREDFUND1010. 015210. 015210.
0152
BALANCEDFUND1010. 009110.009110.0091
GROWTHFUND1010. 043910.043910.0439
#Subjectt
oMarketr
isk; Notguarant
eed
#Pastperf
ormancemaynoti ndicat
efut
ureperfor
mance
FI
NDI
NGS
Fi
ndi
ngs:Af
tercompl
eti
ngt
hest
udyf
oll
owi
ngpoi
ntscanbedr
awn:
1.Ithasoneoft hesi
ngledistr
ibut
ionnetworksamongstgov ernmentinsurance
players.
2.LIChasmanynumber sofinsurancepolici
esandpl anshavingfl
exibletomeett he
customer s’r
equirementandexpect at
ion.
3.LICent er
edt hemarketwithaggressivemar ket
ingandsuppor t
edbyaf tersale
serviceswiththehelpoftechnology.
4.All LI
CPlanscomewi t
hSov erei
gnGuar anteei.
e.,GovernmentofIndiaGuar ant
ee
regardingrepayment.I
nfact,asofnow, onlyLICplansenjoythisGovernment
Guar antee.

CHAPTER-
6
CONCLSI
ON
CONCLUSI
ON
Aftercompl eti
ngt heprojectiti
sconcl udedt hatLICdevelopi
tsvari
ousplansand
policies,flexibl
ei nnature,accordingtot herequirementsofit
stargetedmarketor
cust omer sandi sthusbenef ici
altoitscustomer sinvari
ousway s.Themostimpor t
ant
benef ititprov i
dest oitscustomer sisthatitisagov er
nmentownedcompany .Thi
s
l
eadt oincr easeint hesat i
sfacti
onlevel ofi
tscust omerthati
swhyLI Chasmor ethan
200mi l
l
ionpol icyholderswhi chisequal tothefourthl
argestcountr
yi nwor
ld.
Therefor
eiti
snotonlybenefi
cial
butbettert
hanot
heri
nsur
ancecompani
esnotonl
y
regardi
ngit
sproductbutal
soitsser
vices.
BI
BLI
OGRAPHY
I
nfor
mationanddatausedi
nthepr
ojecthasbeencol
l
ect
edf
rom t
he
f
oll
owingsources:
-
1.www. li
cindia.com
2.www. li
cmut ual.com
3.www. li
chousi ng.com
4.www. wikipedia.org
5.www. reportbuy er.
com
6.OutlookMoneyMagazi ne
12thAugust2009, 09September2009
7.MoneyTodayMagazi ne
11June2009, September2009