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Mission and Vission

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."

Objective 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 insurancelinked 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 realization that the moneys belong to the policyholders. full

‡ 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.

(Managing Director. LIC ) Shri R. LIC ) Shri A.V. Department of Economic Affairs. Mehrotra.K.K. Tanksale. (Current-in-Charge & CHAIRMAN. of India. (Secretary.K. Sampath Shri Amardeep Singh Cheema . S. Ministry of Finance. (Secretary. LIC ) Shri Thomas Mathew T. Gopalan. Govt. Govt.) Shri Anup Prakash Garg Shri Sanjay Jain Shri Ashok Singh Shri K.Board Of Directors Members On The Board Of The Corporation Shri D. LIC ) Shri T. (Managing Director. Ministry of Finance. of India. Dasgupta. Department of Financial Services.) Shri D. Vijayan. General Arvind Mahajan (Retd.S. Mittal.) Shri M. (Chairman & Managing Director. Central Bank of India ) Lt. (Managing Director.

OPARETIONS .

Any LIC Agent will be glad to help you choose the life insurance plan to meet your needs and render policy servicing. the prominence of insurance is not as widely understood. with special reference to LIC. which is one of the most populated in the world. What Is Life Insurance? Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. That of dying prematurely leaving a dependent family to fend for itself. or ‡ Unfortunate death. substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. In our country. . in short. life insurance is civilisation's partial solution to the problems caused by death. or ‡ Specified dates at periodic intervals. as it ought to be. That of living till old age without visible means of support. 2. Among other things. is concerned with two hazards that stand across the life-path of every person: 1.KNOW ABOUT YOUR LIFE INSURANCE Life insurance in India made its debut well over 100 years ago. The contract is valid for payment of the insured amount during: ‡ The date of maturity. be clearly understood that the following content is by no means an exhaustive description of the terms and conditions of an LIC policy or its benefits or privileges. Life insurance. By and large. however. Life insurance is universally acknowledged to be an institution. It should. What follows is an attempt to acquaint readers with some of the concepts of life insurance. For more details. which eliminates 'risk'. if it occurs earlier. the contract also provides for the payment of premium periodically to the Corporation by the policyholder. please contact our branch or divisional office.

a life insurance policy is also generally accepted as security. which applies to all forms of insurance. Money When You Need It: A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-to- .Life Insurance Vs. in case of demise. Besides. Tax Relief: Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. even for a commercial loan. provides a convenient method of paying premium each month by deduction from one's salary. Other Savings Contract Of Insurance: A contract of insurance is a contract of utmost good faith technically known as uberrima fides. it is easy to acquire loans on the sole security of any policy that has acquired loan value. non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void. Liquidity: In case of insurance. half yearly or yearly). For example: The Salary Saving Scheme popularly known as SSS. In this case the employer directly pays the deducted premium to LIC. Assessees can also avail of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for insurance than otherwise. At the time of taking a policy. The Salary Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions. (Premium payment for insurance is either monthly. only the amount saved (with interest) is payable. life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes. The doctrine of disclosing all material facts is embodied in this important principle. Also. Protection: Savings through life insurance guarantee full protection against risk of death of the saver. quarterly. policyholder should ensure that all questions in the proposal form are correctly answered. It allows longterm savings since payments can be made effortlessly because of the 'easy instalment' facility built into the scheme. Any misrepresentation. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Aid To Thrift: Life insurance encourages 'thrift'.

In the former. loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions). In other cases. the terms under which life insurance is granted to female lives have been reviewed from timeto-time. subject to certain conditions. after nationalisation of life insurance.time. certain factors such as the policyholder¶s state of health. purchase of a house or for other investments. While underwriting proposals. only if the age of the female is up to 30 years and if she does not have an income attracting Income Tax. . bonuses disclosed. on the life of one's spouse or children. such as. At present. after periodical valuations are allotted to the policy and are payable along with the contracted amount. many private insurance companies would offer insurance to female lives with some extra premium or on restrictive conditions. if any. Policies can also be taken. However. to facilitate greater spread of insurance and also to avoid inconvenience. Alternatively. Also. Who Can Buy A Policy? Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest. the proponent's income and other relevant factors are considered by the Corporation. subject to certain conditions. Medical And Non-Medical Schemes With Profit And Without Profit Plans An insurance policy can be 'with' or 'without' profit. start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies. Life insurance is normally offered after a medical examination of the life to be assured. policy money can be made available at the time of one's retirement from service and used for any specific purpose. women who work and earn an income are treated at par with men. Children's education. In 'without' profit plan the contracted amount is paid without any addition. LIC has been extending insurance cover without any medical examination. Insurance For Women Prior to nationalisation (1956). However. a restrictive clause is imposed. The premium rate charged for a 'with' profit policy is therefore higher than for a 'without' profit policy.

Pune. 5. Jaipur. which may occur due to the premature demise of the Keyman. Trivandrum. employees and employees of Quasi-Govt. A policyholder having an account in any Bank which is a Member of the local Clearing House can opt for ECS debit to pay premiums. 8. 9. Chennai. ‡ Certified Extract from School or College records. if it contains age or date of birth. Patna. The policyholders wishing to use this system would have to fill up a Mandate Form available at our Branches/DO and get it certified by the Bank. ‡ Certified Extract from Service Register in the case of Govt.Keyman Insurance Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm against financial losses. Vijaywada. Ahmedabad. Santacruz.Through Internet : Payment of premiums can be made through Internet through Service Providers viz.Premium payment can also be made through ATMs of Corporation Bank and UTI Bank. Goa and Nagpur. Citibank Kiosks at Industrial Assurance Building. Secunderabad & Visakhapatnam. Bank of Punjab. 4.Many Banks do accept standing instructions to remit the premiums. local cheque (subject to realization of cheque). New Delhi. Hyderabad. Chandigarh. Institutions or ‡ Passport issued by the Passport Authorities in India. Policy can be anywhere in India. Federal Bank and BillDesk. Borivili are . Demand Draft at Branch Office. 7.Premium payment can also be made through Electronic Clearing Service (ECS) which has been launched at Mumbai. Corporation Bank. So by providing a standing instruction to your Bank to debit your account for the premium amount and send it vide a banker¶s cheque to LIC.The DD and cheques or Money Order may be sent by post. The following are accepted as evidence of age: ‡ Certified extract from Municipal or Local Body¶s records made at the time of birth. Admission Of Age: Payment Of Premium: 3. 6. 10. Churchgate.You can pay your premiums at any of our Branches as 99% of our Branches are networked. Kolkata. on the due dates and months mentioned on your policy bond. Jeevan Shikha Building. ICICI Bank. ‡ Certificate of Baptism or Certified Extract from Family Bible. Citibank. Bangalore.By cash. Bill Junction. The certified Mandate Forms are to be submitted to our BO/DO. New India Building.HDFC Bank. Kanpur. UTI Bank. Times of Money. Age is the main basis of calculation of premium under life insurance policies. if age or date of birth is stated therein.

Loss Of Policy Document: ‡ The Policy Document is an evidence of the contract between the Insurer and the Insured. The Conditions and Privileges printed on the back of the Policy Bond states whether a particular policy is with or without the loan facility. ‡ Policy records can also be transferred from one Branch Office to another for servicing. Change Of Address And Transfer Of Policy Records: ‡ The policyholder should immediately intimate the change of his/her address to the Branch Office servicing the policy. inclusive of the cash value of bonus. as requested by the policyholder. ‡ When the days of grace expire on a Sunday or a public holiday. ‡ The Corporation offers three convenient schemes of revival viz. settlement of claims. issue of duplicate policies. Ordinary Revival. ‡ Loss of the Policy Document should be immediately intimated to the Branch Office where it is serviced. it can be revived during the life time of the life assured. the policy lapses. Hence the policyholder should preserve the Policy Bond till the contracted amount under it is settled. a grace period of one month but not less than 30 days will be allowed for payment of yearly/half-yearly/quarterly premiums and 15 days for monthly premiums. The correct address facilitates better service and quicker settlement of claims. Loans: ‡ Loans are granted on policies to the extent of 90% of Surrender Value of the policies which are in force and 85% of the Surrender Value in case of policies which are paid-up. Revival Of Lapsed Policy: ‡ If the policy has lapsed. However. Relief To Policyholders: ‡ The Corporation generally allows concessions on payment of premiums. Policies can also be revived under Loan-cum-Revival and SB-cum-Revival schemes.. the premium may be paid on the following working day to keep the policy in force.dedicated for collection of premiums through cheques. ‡ If the premium is not paid before the expiry of the days of grace. ‡ Loans are not granted for a period shorter than six months. etc when the . ‡ Request for revival may be made to the Branch Office servicing the policy. within a period of five years from the date of the first unpaid premium but before the date of maturity subject to certain conditions. Days Of Grace: ‡ Policyholder should pay the premiums on due dates. payable half-yearly. The rate of interest charged at present is 9% p. Special Revival and Installment Revival.a.

The Nominee does not get any other benefit except to receive the policy moneys on the death of the Life Assured. Nomination: ‡ Nomination is a right conferred on the holder of a Policy of Life Assurance on his own life to appoint a person/s to receive policy moneys in the event of the policy becoming a claim by the assured¶s death. the policyholder will have to make a fresh nomination to avoid delay in settlement of claim. Survival Benefit/Maturity Claims: ‡ LIC settles survival benefit/maturity claims on or before the due date. Hence. ‡ Policyholder are intimated well in advance by the Branch Office which services the policy regarding the payment. death claim arises. ‡ Assignment can be either conditional or absolute.60. all rights. In case the policyholder does not get any intimation from the Branch Office concerned. Death Claims: ‡ If the life assured dies during the term of the policy. The No. earthquakes. title and interest. floods. When an assignment is executed. he/she should contact them. necessary claim forms are sent by the Branch Office for completion along with instructions regarding the procedure to be followed by the claimant. when such a policy is reassigned. The death of the policyholder should be immediately intimated in writing to the Branch Office where the policy is serviced along with the following particulars: 1. Death Certificate issued by concerned Authority 4. ‡ Survival Benefit payment up to Rs.are settled without insisting for Policy Bond and Discharge Voucher.000/. title and interest in respect of the property assigned are immediately transferred to the Assignee/s and the Assignee/s become the owner/s of the policy subject to any lawful condition made in the assignment. quoting the Policy Number. etc. On assignment (other than to LIC). ‡ The claims which have arisen after a period of three years are treated as non-early claims and settled within 30 days from the date of . Ensure nomination exists in the policy for easy settlement of claims. The name of the policyholder 3. Nomination automatically stands cancelled. Claimant¶s relationship with the deceased ‡ On receipt of the intimation of death. and the necessary Discharge Voucher is also sent for execution by the assured.policyholder are affected by natural calamities such as droughts. The cause of death and 6. Assignment: ‡ Assignment means transfer of rights. A nomination may be changed or cancelled by the life assured whenever he likes without the consent of the Nominee. cyclones. The date of death 5./s of the policy/ies 2.

if the deceased policyholder has not nominated/assigned the policy or if he/she has not made a suitable provision regarding the policy moneys by way of a Will. loans. As a result of such review. The number of Death Claims repudiated is. Only in case of fraudulent suppression of material information is the liability repudiated. c) any dispute on the legal construction of the policies in so far as such disputes relate to claims. At present there are 12 centres operating all over the country. the claim is payable to the holder of a Succession Certificate or some such evidence of title from a Court of Law. as the case may be. very small. depending on the merits of each case.receipt of all requirements. d) delay in settlement of claims. Claim Review Committee: The Corporation settles a large number of Death Claims every year. revivals. b) any dispute in regard to premiums paid if payable in terms of the policy. Even in these cases. however. acceptance of renewal premium. an opportunity is given to the claimant to make a representation for consideration by the Review Committees of the Zonal office and the Central Office. in the event of the death of the life assured within a period of six months or one year from the date of the first unpaid premium. Insurance Ombudsman: ‡ The Grievance Redressal Machinery has been further expanded with the appointment of Insurance Ombudsman at different centers by the Government of India. ‡ Policyholder can approach the Insurance Ombudsman for the redressal of their complaints free of cost. This is to ensure that claims are not paid to fraudulent persons at the cost of honest policyholders. However. ‡ The claims that have arisen within a period of two years from the date of commencement of the policy. ‡ The claim is usually payable to the nominee/assignee or the legal heirs. are treated as early claims and investigation is compulsory in such cases. subject to the deduction of unpaid premiums with interest till the date of death and unpaid premiums falling due before the next anniversary of the policy. e)non-issue of any insurance document to customers after receipt of premium. The Claims Review Committees of the Central and Zonal Offices have among their Members. provided premiums have been paid for at least three years and five years respectively. ‡ The Corporation grants claims concessions under certain Plans whereby payment of full sum assured is made. policyholders and public. appropriate decisions are taken. This has helped providing transparency and confidence in our operations and has resulted in greater satisfaction among claimants. a retired High Court/District Court Judge. . Initiatives In Policy Servicing Areas: ‡ All 2048 Branches of LIC are fully computerized covering all policy servicing aspects to give prompt computerized services from new policy introduction. ‡ Following type of complaints fall within the purview of the Ombdusman a) any partial or total repudiation of claims by an insurer.

These are headed by designated Officers who are available at their respective Offices every Monday between 2.Citi Bank. ICICI Bank./Branch Manager At Divisional Office --Marketing Manager At Zonal Office --. Times of money.30 pm. viz. ‡ Payment of premiums can be made through internet through service providers. Bill Junction.30 pm and 4. Policyholder can approach these officers to get their grievances redressed. Federal Bank and Billdesk. HDFC Bank. In the Charter the bench marks were prescribed for 30 servicing areas.Executive Director (Mktg/IO/CRM) Citizens¶ Charter: ‡ Citizens' Charter was presented to the Nation in November. Bank of Punjab.etc to final claims settlement.. UTI Bank. Corporation Bank. 1997. Grievance Redressal Machinery: ‡ A machinery for redressal of policyholders grievances exist in all the offices of the Corporation. ‡ Green Channel facility has been introduced for the speedy completion of proposals.Sr. ‡ The Designated Officers at the various offices of the Corporation are : At Branch Office --. except holidays.Regional Manager (Mktg) At Central Office --. .