109107102 camparative-study-of-lic-of-india

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ON

CAMPARATIVE STUDY LIFE INSURANCE CORPORATION OF

INDIA

SUBMITTED IN PARTIAL FULFILLMENT FOR

UNDER THE GUIDANCE OF

SUBMITTED BY:

INSTITUTE

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STUDENT DECLARATION

This is to certify that the project titled ‘CAMPARATIVE STUDY OF

LIFE INSURANCE CORPORATION OF INDIA’ under the guidance of

‘Professor Name’ has been completed and submitted in partial fulfillment of

the requirement for the award of degree of Bachelor of Business

Administration at Maharaja Agrasen Institute of Management Studies, Delhi

. This is an original piece of work & I have not submitted it earlier

elsewhere.

Student Name

‘CAMPARATIVE STUDY OF LIFE INSURANCE CORPORATION OF INDIA’ Page 1

GUIDE CERTIFICATE

This is to certify that the project titled CAMPARATIVE STUDY OF

LIFE INSURANCE CORPORATION OF INDIA is an academic work

done by “Student Name” submitted in the partial fulfillment of the

requirement for the award of the degree of Bachelor Of Business

Administration from Maharaja Agrasen Institute of Management Studies,

Delhi, under my guidance & direction. To the best of my knowledge and

belief the data & information presented by him/her in the project has not

been submitted earlier.

Faculty


ACKNOWLEDGEMENT

I am highly obliged to Professor Name (project guide) for her constant and

excellent guidance and also her valuable support without whom this project

report could not be successfully completed. I am also thankful to my friends,

my parents, brother-sister for helping me in the completion of this project

report.

Signature


INDEX

Table of Content

CHAPTER-1 7

Introduction

CHAPTER -2 11

Company Profile

CHAPTER -3 30

Research Methodology

CHAPTER-4 34

Policies and Plans

CHAPTER -5 70

Findings


CHAPTER -6 72

Conclusion

BIBLIOGRAPHY 74


EXECUTIVE SUMMARY

Insurance is the most familiar word or phrase used in today’s life. Insurance

companies are those institutes that provide various types of facility and

services in term of there plans and policies to the consumers. The following

project has been made on one of the largest company in insurance sector in

India which is owned by government which is “CAMPARATIVE STUDY

OF LIFE INSURANCE CORPORATION OF INDIA”. The following

project makes an analysis of the products of LIC. The brief summary of each

chapter is discussed as follows:-

CHAPTER-1

It consist of information of the industrial profile of the life insurance sector

i.e. when and how does this sector emerges and how it contributes to the

economy,

CHAPTER-2

Chapter 2 includes company profile of LIC i.e. how and when it is formed,

which were the companies that merges and form LIC, its milestones, its

objectives, mission and vision, what is life insurance, board of directors, a

brief on the subsidiaries. It also includes awards and achievements by LIC.

CHAPTER-3

Purpose of the study for which it is conducted, objective while conducting

the study and methodology which consist of the medians used and the tools

used to complete the study.


CHAPTER-4

It includes some of the products offered by LIC, net asset value of the

products, tax benefits to its policy holders categorized according to their age.

It also shows the relationship of LIC with information technology.

CHAPTER-5

This chapter includes the findings and analysis retrieved after the study of the

of the project.

CHAPTER-6

Chapter 6 consists of the conclusion arrived after analyzing and findings

from the study.


CHAPTER-1

INRODUCTION


INSURANCE COMPANIES IN INDIA

In India, Insurance is a national matter, in which life and general insurance is

yet a booming sector with huge possibilities for different global companies,

as life insurance premiums account to 2.5% and general insurance premiums

account to 0.65% of India's GDP. The Indian Insurance sector has gone

through several phases and changes, especially after 1999, when the Govt. of

India opened up the insurance sector for private companies to solicit

insurance by passing Insurance Regulatory and Development Authority

(IRDA) Bill, allowing FDI up to 26%. Since then, the Insurance sector in

India is considered as a flourishing market amongst global insurance

companies. However, the largest life insurance company in India is still

owned by the government.

The history of Insurance in India dates back to 1818, when Oriental Life

Insurance Company was established by Europeans in Kolkata to cater to their

requirements. Nevertheless, there was discrimination among the life of

foreigners and Indians, as higher premiums were charged from the latter. In

1870, Indians took a sigh of relief when Bombay Mutual Life Assurance

Society, the first Indian insurance company covered Indian lives at normal

rates. Onset of the 20th century brought a drastic change in the Insurance

sector.

In 1912, the Govt. of India passed two acts - the Life Insurance Companies

Act, and the Provident Fund Act - to regulate the insurance business.

National Insurance Company Ltd, founded in 1906, is the oldest existing

insurance company in India. Earlier, the Insurance sector had only two state

insurers - Life Insurers i.e. Life Insurance Corporation of India (LIC), and

General Insurers i.e. General Insurance Corporation of India (GIC). In


December 2000, these subsidiaries were de-linked from parent company and

were declared independent insurance companies: Oriental Insurance

Company Limited, New India Assurance Company Limited, National

Insurance Company Limited and United India Insurance Company Limited.

With an annual growth rate of 15-20% and the largest number of life

insurance policies in force, the potential of the Indian insurance industry is

huge. Total value of the Indian insurance market (2004-05) is estimated at

Rs. 450 billion (US$10 billion).

The life insurance industry in India grew by an impressive 36%, with

premium income from new business at Rs. 253.43 billion during the fiscal

year 2004-2005, braving stiff competition from private insurers. This report,

"Indian Insurance Industry: New Avenues for Growth 2012", finds that the

market share of the state behemoth, LIC, has clocked 21.87% growth in

business at Rs.197.86 billion by selling 2.4 billion new policies in 2004-05.

But this was still not enough to arrest the fall in its market share, as private

players grew by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29

billion in 2003-04.

Though the total volume of LIC's business increased in the fiscal year (2004-

2005) compared to the previous one, its market share came down from 87.04

to 78.07%. The 14 private insurers increased their market share from about

13% to about 22% in a year's time. The figures for the first two months of the

fiscal year 2005-06 also speak of the growing share of the private insurers.

The share of LIC for this period has further come down to 75 percent, while

the private players have grabbed over 24 percent.


There are presently 12 general insurance companies with four public sector

companies and eight private insurers and private insurance companies

collectively have a 10% share of the non-life insurance market.


CHAPTER-2

COMPANY PROFILE


COMPANY PROFILE

The story of insurance is probably as old as the story of mankind. The same

instinct that prompts modern businessmen today to secure themselves against

loss and disaster existed in primitive men also. They too sought to avert the

evil consequences of fire and flood and loss of life and were willing to make

some sort of sacrifice in order to achieve security. Though the concept of

insurance is largely a development of the recent past, particularly after the

industrial era – past few centuries – yet its beginnings date back almost 6000

years.

Life Insurance in its modern form came to India from England in the year

1818. Oriental Life Insurance Company started by Europeans in Calcutta was

the first life insurance company on Indian Soil. All the insurance companies

established during that period were brought up with the purpose of looking

after the needs of European community and Indian natives were not being

insured by these companies. However, later with the efforts of eminent

people like Babu Muttylal Seal, the foreign life insurance companies started

insuring Indian lives. But Indian lives were being treated as sub-standard

lives and heavy extra premiums were being charged on them. Bombay

Mutual Life Assurance Society heralded the birth of first Indian life

insurance company in the year 1870, and covered Indian lives at normal

rates. Starting as Indian enterprise with highly patriotic motives, insurance

companies came into existence to carry the message of insurance and social

security through insurance to various sectors of society. Bharat Insurance

Company (1896) was also one of such companies inspired by nationalism.

The Swadeshi movement of 1905-1907 gave rise to more insurance

companies. The United India in Madras, National Indian and National

Insurance in Calcutta and the Co-operative Assurance at Lahore were


established in 1906. In 1907, Hindustan Co-operative Insurance Company

took its birth in one of the rooms of the Jorasanko, house of the great poet

Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance

and Swadeshi Life (later Bombay Life) were some of the companies

established during the same period. Prior to 1912 India had no legislation to

regulate insurance business. In the year 1912, the Life Insurance Companies

Act, and the Provident Fund Act were passed. The Life Insurance Companies

Act, 1912 made it necessary that the premium rate tables and periodical

valuations of companies should be certified by an actuary. But the Act

discriminated between foreign and Indian companies on many accounts,

putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance

business. From 44 companies with total business-in-force as Rs.22.44 crore,

it rose to 176 companies with total business-in-force as Rs.298 crore in 1938.

During the mushrooming of insurance companies many financially unsound

concerns were also floated which failed miserably. The Insurance Act 1938

was the first legislation governing not only life insurance but also non-life

insurance to provide strict state control over insurance business. The demand

for nationalization of life insurance industry was made repeatedly in the past

but it gathered momentum in 1944 when a bill to amend the Life Insurance

Act 1938 was introduced in the Legislative Assembly. However, it was much

later on the 19th of January, 1956, that life insurance in India was

nationalized. About 154 Indian insurance companies, 16 non-Indian

companies and 75 provident were operating in India at the time of

nationalization. Nationalization was accomplished in two stages; initially the

management of the companies was taken over by means of an Ordinance,

and later, the ownership too by means of a comprehensive bill. The

Parliament of India passed the Life Insurance Corporation Act on the 19th of


June 1956, and the Life Insurance Corporation of India was created on 1st

September, 1956, with the objective of spreading life insurance much more

widely and in particular to the rural areas with a view to reach all insurable

persons in the country, providing them adequate financial cover at a

reasonable cost.

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, 100

divisional offices, 7 zonal offices and the corporate office. LIC’s Wide Area

Network covers 100 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 continues to be the dominant life insurer even in the liberalized scenario

of Indian insurance and is moving fast on a new growth trajectory surpassing

its own past records. LIC has issued over one crore policies during the

current year. It has crossed the milestone of issuing 1,01,32,955 new policies

by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the

corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has set

unprecedented performance records in various aspects of life insurance

business. The same motives which inspired our forefathers to bring insurance

into existence in this country inspire us at LIC to take this message of

protection to light the lamps of security in as many homes as possible and to

help the people in providing security to their families.

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 nationalized. 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.

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 (Nationalization) Act, 1972

nationalized the general insurance business in India with effect from 1st

January 1973.


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 SUBSIDIARIES

Unlike provisions for private players in the insurance sector, the LIC Act

provides for setting up subsidiaries through policy holders fund. It is due to

the LIC act that LIC of India has a number of subsidiaries which help it in

leveraging its potential to the maximum, providing an enhanced set of

diversified services to its customers. These subsidiaries include LIC

International, LIC Nepal, LIC Lanka, LIC Housing Finance and LIC Mutual

Fund.

LIC INERNATIONAL

This is a joint venture offshore company promoted by LIC which

commenced operations in July, 1989 with the objectives of offering US$

denominated policies to cater to the insurance needs of NRIs and providing

insurance services to holders of LIC policies currently residing in the Gulf.

LIC International operates in all GCC countries.

LIC NEPAL

A joint venture company formed in 2001 with the Vishal Group of

Industries, Nepal.


LIC LANKA

A joint venture company formed in 2003 with the Bartleet Group of

Companies, Sri Lanka.

LIC HOUSING FINANCE LTD.

The Company is recognized by National Housing Bank and listed on the

National Stock Exchange (NSE) & Bombay Stock Exchange Limited (BSE).

LIC Housing Finance Ltd. is one of the largest Housing Finance Company in

India. Incorporated on 19th June 1989 under the Companies Act, 1956, the

company was promoted by LIC of India and went public in the year 1994. Its

main objective is to provide long term finance for construction or purchase of

houses or apartments. It has a Dubai office.

LIC MUTUL FUND LTD.

Life Insurance Corporation of India set up LIC Mutual Fund on 19th June

1989 and contributed Rs. 2 Crores towards the corpus of the Fund. LIC

Mutual Fund was constituted as a Trust in accordance with the provisions of

the Indian Trust Act, 1882.

There are some other subsidiaries of LIC which are

1. LIC Mutual Fund Asset Management Company Ltd.

2. LIC HFL Care Homes Ltd.

3. LICHFL Asset Management Company Private Limited.

4. LICHFL Trustee Company Private Limited.

5. LICHFL Financial Services Limited, etc.


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.

The contract is valid for payment of the insured amount during:

The date of maturity, or

Specified dates at periodic intervals, or

Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium

periodically to the Corporation by the policyholder. Life insurance is

universally acknowledged to be an institution, which eliminates 'risk',

substituting certainty for uncertainty and comes to the timely aid of the

family in the unfortunate event of death of the breadwinner.

By and large, life insurance is civilization’s partial solution to the problems

caused by death. Life insurance, in short, is concerned with two hazards that

stand across the life-path of every person:

1. That of dying prematurely leaves a dependent family to fend for itself.

2. That of living till old age without visible means of support.

Life Insurance Vs. Other Savings

Contract of Insurance:

A contract of insurance is a contract of utmost good faith technically known

as uberrima fides. The doctrine of disclosing all material facts is embodied in

this important principle, which applies to all forms of insurance.

At the time of taking a policy, policyholder should ensure that all questions


in the proposal form are correctly answered. Any misrepresentation, non-

disclosure or fraud in any document leading to the acceptance of the risk

would render the insurance contract null and void.

Protection:

Savings through life insurance guarantee full protection against risk of death

of the saver. Also, in case of demise, life insurance assures payment of the

entire amount assured (with bonuses wherever applicable) whereas in other

savings schemes, only the amount saved (with interest) is payable.

Aid to Thrift:

Life insurance encourages 'thrift'. It allows long-term savings since payments

can be made effortlessly because of the 'easy installment' facility built into

the scheme. (Premium payment for insurance is either monthly, quarterly,

half yearly or yearly). For example: The Salary Saving Scheme popularly

known as SSS provides a convenient method of paying premium each month

by deduction from one's salary. In this case the employer directly pays the

deducted premium to LIC. The Salary Saving Scheme is ideal for any

institution or establishment subject to specified terms and conditions.

Liquidity:

In case of insurance, it is easy to acquire loans on the sole security of any

policy that has acquired loan value. Besides, a life insurance policy is also

generally accepted as security, even for a commercial loan.

Tax Relief:

Life Insurance is the best way to enjoy tax deductions on income tax and

wealth tax. This is available for amounts paid by way of premium for life

insurance subject to income tax rates in force.

Assesses 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.

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-time. Children's education, 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.

Alternatively, policy money can be made available at the time of one's

retirement from service and used for any specific purpose, such as, purchase

of a house or for other investments. Also, loans are granted to policyholders

for house building or for purchase of flats (subject to certain conditions).

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.

Policies can also be taken, subject to certain conditions, on the life of one's

spouse or children. While underwriting proposals, certain factors such as the

policyholder’s state of health, the proponent's income and other relevant

factors are considered by the Corporation.

Insurance For Women

Prior to nationalization (1956), many private insurance companies would

offer insurance to female lives with some extra premium or on restrictive

conditions. However, after nationalization of life insurance, the terms under

which life insurance is granted to female lives have been reviewed from

time-to-time.

At present, women who work and earn an income are treated at par with


men. In other cases, a restrictive clause is imposed, only if the age of the

female is up to 30 years and if she does not have an income attracting

Income Tax.

Medical And Non-Medical Schemes

Life insurance is normally offered after a medical examination of the life to

be assured. However, to facilitate greater spread of insurance and also to

avoid inconvenience, LIC has been extending insurance cover without any

medical examination, subject to certain conditions.

With Profit And Without Profit Plans

An insurance policy can be 'with' or 'without' profit. In the former, bonuses

disclosed, if any, after periodical valuations are allotted to the policy and are

payable along with the contracted amount.

In 'without' profit plan the contracted amount is paid without any addition.

The premium rate charged for a 'with' profit policy is therefore higher than

for a 'without' profit policy.

Keyman Insurance

Keyman insurance is taken by a business firm on the life of key employee(s)

to protect the firm against financial losses, which may occur due to the

premature demise of the Keyman.


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.

MISSION/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."

VISSION

"A trans-nationally competitive financial conglomerate of significance to

societies and Pride of India."

BOARD OF DIRECTORS


Members on the Board of the Corporation

1. Chairman: Shri. T.S. Vijayan

2. Managing Director: Shri. D.K. Mehrotra

3. Managing Director: Shri. Thomas Mathew T.

4. Managing Director: Shri. A.K. Dasgupta

5. Finance Secretary: Shri. Ashok Chawla (Ministry of Finance, Govt. of

India)

6. Additional Secretary: Shri. G.C. Chaturvedi (Department of Financial

Services, Ministry of Finance, Govt. of India.)

7. Chairman cum Managing Director: Shri. Yogesh Lohiya (GIC of India)

8. Chairman & Managing Director: Shri. T.C. Venkat Subramanian

(Export Import Bank of India)

9. Dr. Sooranad Rajashekhran

10. Shri. Monis R. Kidwai

AWARDS AND ACHIVEMENTS


Brand Equity Most Trusted Brand

2009 Top in Insurance Category

Golden Peacock Innovative

Product / Service Award – 2009

Loyalty Awards - 2009

Readers Digest Trusted Brand

Award 2009 in the Platinum

category

CNBC Awaaz Consumer Awards

2008

NDTV Profit Business Leadership

Award 2008


INDY's Silver Award for Best

Corporate Film

INDY's Silver Award for Best in

House Magazine

IT USER 2008 NASCOM Selected Business Super brand

India 2008

ASIA BRAND CONGRESS

BRAND LEADERSHIP AWARD

2008

Pitch Award -" Rank 1 " India's

Top 50 service Brands


Loyalty Awards 2008 - Insurance

Sector

SKOCH Challengers Award 2008

for Jeevan Madhur

Readers Digest Trusted Brand

Award 2008 in the Platinum

category.

Golden Peacock Award for

Excellence in Corporate

Governance

Web 18 Genius of the web awards

2007


CHAPTER-3‘CAMPARATIVE STUDY OF LIFE INSURANCE CORPORATION OF INDIA’ Page 30

RESEARCH

METHODOLOGY

PURPOSE OF THE STUDY

The purpose behind the study of ‘CAMPARATIVE STUDY OF LIFE

INSURANCE CORPORATION OF INDIA’ is to understand the

companies’ background as well as the nature of the various products offered

over many years in India. Purpose is to study the products and their benefits

to customers. This gives a brief idea of the nature of products of the

company.


OBJECTIVES OF THE STUDY

The objectives behind the study of the plans and policies of

‘CAMPARATIVE STUDY OF LIFE INSURANCE CORPORATION

OF INDIA’ are:

1. To impart knowledge about the history and objectives of the company and

also its different subsidiaries.

2. To aware the readers about the different plans and policies provided by

LIC, there value and benefits to its customers.


METHODOLOGY

DATA COLLECTION:

All the information provided on ‘CAMPARATIVE STUDY OF LIFE

INSURANCE CORPORATION OF INDIA’ in the project report has

been collected through secondary resources. No survey has been conducted

to collect information for the study. Therefore only secondary data is used in

the study.

STATICAL TOOLS:


Secondary resources used in the study for information collection is internet

and magazines. Magazines & websites have been used and the information

retrieved from these sources is then gathered in this project. Other tools used

in the study which are used in the preparation of the project after collecting

information are:

1. MS Word

2. MS Excel


CHAPTER-4

POLICIES

POLICIES (SCHEMES)

Life Insurance Corporation of India provides number of products to its

costumers. LIC differentiated their policies into five different types which

are:

1. Insurance Plans

2. Pension Plans

3. Unit Plans

4. Special Plans

5. Group Scheme


INSURANCE PLANS

As individuals it is inherent to differ. Each individual’s 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.

Jeevan Anurag Komal Jeevan

CDA Endowment Vesting

At 21 Marriage Endowment Or

Educational Annuity Plan CDA Endowment Vesting

At 18

Jeevan Kishore Jeevan Chhaya

Child Career Plan Child Future Plan

Child Fortune Plus

Jeevan Aadhar

Jeevan Vishwas

The Endowment Assurance Policy

The Endowment Assurance Policy-Limited Payment

Jeevan Mitra(Double Cover Endowment Plan)

Jeevan Mitra(Triple Cover Endowment Plan)

Jeevan Anand

New Janaraksha Plan

Jeevan Amrit


Jeevan Shree-I

Jeevan Pramukh

The Money Back Policy-20 Years

The Money Back Policy-25 Years

Jeevan Surabhi-15 Years



Bima Bachat

Jeevan Bharati - I

The Whole Life Policy

The Whole Life Policy- Limited Payment

The Whole Life Policy- Single Premium

Jeevan Anand

Jeevan Tarang

Two Year Temporary Assurance Policy

The Convertible Term Assurance Policy

Anmol Jeevan-I

Amulya Jeevan-I

Jeevan Saathi Plus

Jeevan Saathi


Mortgage Redemption

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.

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.

Market Plus I

Profit Plus

Fortune Plus

Money Plus-I


Child Fortune Plus

SPCIAL 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!

New Bima Gold

Health Protection Plus

Health Plus

Bima Nivesh 2005

Jeevan Saral

Jeevan Madhur

GROUP SCHEME

Group Insurance Scheme is life insurance protection to groups of

people. This scheme is ideal for employers, associations, societies etc.

and allows you to enjoy group benefits at really low costs.


Jeevan Mangal

Group LIC's Superannuation Plus

Group Term Insurance Schemes

Group Insurance Scheme in Lieu Of EDLI

Group Gratuity Scheme

Group Super Annuation Scheme

Group Savings Linked Insurance Scheme

Group Leave Encashment Scheme

Group Mortgage Redemption Assurance Scheme

Gratuity Plus

Group Critical Illness Rider

JanaShree Bima Yojana (JBY)

Shiksha Sahayog Yojana

Aam Admi Bima Yojana

PRODUCTS BY LICINSURANCE PLANS

1. Jeevan Anand

Features


Product summary:

This plan is a combination of Endowment Assurance and Whole Life plans.

It provides financial protection against death throughout the lifetime of the

life assured with the provision of payment of a lump sum at the end of the

selected term in case of his survival.

Premium:

Premiums are payable yearly, half-yearly, quarterly, monthly or through

salary deductions as opted by you throughout the selected term of the policy

or till 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. Bonuses will be added during the

selected term or till death, if it occurs earlier. Final (Additional) Bonus may

also be payable provided the policy has run for certain minimum period

BenefitsBenefits in case of death during the selected term:

The Sum Assured along with the vested bonuses is payable on death in a

lump sum.


Benefits in case of survival to the end of selected term:

The Sum Assured along with the vested bonuses is payable in a lump sum on

survival to the end of the term. An additional Sum Assured is payable on

death thereafter.

Accident Benefit:

An additional Sum Assured (subject to a limit of Rs.5 lakh) is payable in a

lump sum on death due to accident up to age 70 of life assured. In case of

permanent disability of the life assured due to accident this additional Sum

assured is payable in installments.

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 on 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. Any extra premium(s) paid and premium(s) towards

Accident Benefit are also excluded.

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 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 premium

paid.

2. Jeevan Shree-I

Product summary:

This is an Endowment Assurance plan offering the choice of many

convenient premiums paying terms. It provides financial protection against

death throughout the term of plan with the payment of maturity amount on

survival to the end of the policy term.

Premiums:

Premiums are payable yearly, half-yearly, quarterly or through Salary

deductions, as opted by you, throughout the premium paying term or till

earlier death. Alternatively premium may be paid in one lump sum (Single

premium).

Guaranteed Additions:

The policy provides for the Guaranteed Additions at the rate of Rs. 50/- per

thousand Sum Assured for each completed year for first five years of the

policy. The Guaranteed Additions are payable along with the Basic Sum

Assured at the time of claim.


Bonuses:

The policy participates in the profits of the Corporation’s life insurance

business from the 6th year onwards. It will get a share of the profits in the

form of bonuses. Simple Reversionary Bonuses will be declared per

thousand Basic Sum Assured annually at the end of each financial year. Once

declared, they will form part of the guaranteed benefits of the plan.

Benefits

Death Benefit:

The Sum Assured along with guaranteed additions and vested bonuses, if

any, is payable in a lump sum on death of the life assured during the policy

term.

Maturity Benefit:

The Sum Assured along with guaranteed additions and reversionary bonuses,

if any is payable in a lump sum on survival to the end of the policy term.




benefits.

Surrender Value:


surrender value is available on the plan on earlier termination of the contract.


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. In case of a single premium policy the guaranteed

surrender value is 90% of the single premium paid excluding any extra

premium.


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 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 premium

paid.

3. Bima Bachat

What is Bima Bachat?

LIC’s Bima Bachat is a money-back policy which offers financial security

and assurance to the policy holder and his family. Bima Bachat requires the

policy holder to pay only one premium. The amount paid for the premium

depends on the duration of the policy taken and life insurance is available till

the date of maturity.

What other benefits do I receive during the specified duration of the

policy?


For a term of 9 years: The policy holder will receive 15% of the sum assured

at the end of every 3rd and 6th policy year.

For a term 12 years: The policy holder will receive 15% of the sum assured

at the end of every 3rd, 6th and 9th policy year.

For a term 15 years: The policy holder will receive15% of the sum assured at

the end of every 3rd, 6th, 9th and 12th policy year.

What additional benefits do I get upon maturity?

If the policy holder outlives the duration of the policy, at the time of

maturity, a single premium payment (excluding extra premium) is made

along with loyalty additions, if any.

How much insurance do I get?

The policy holder is insured for an amount equal to the sum assured.


What about the installment received already?

The insurance cover is irrespective of the installments received.

When am I eligible for the guaranteed surrender value?

The guaranteed surrender value is available only after completion of at least

one policy year. This value is equal to 90 % of the single premium paid

(excluding extra premium).

What other benefits does this insurance cover offer?

Bima Bachat is the only money-back policy that offers a loan facility. The

rate of interest for this will be determined from time to time by the

corporation. Presently the rate of interest is 9% p.a. payable half-yearly.

It also offers other benefits like the 15 day cooling off period, grace period

and revival.

Who is eligible for the policy? Are there other conditions or restrictions?

The following are the requirements that one needs to be aware of before

applying for this policy:

· The person applying for the policy should have completed 15 years and

should not be older than 66 years.

· The policy will mature when the person is 75 years old.

· There is a choice of three terms to choose from (9, 12 and 15 years) for the

policy depending on the age and requirement of the applicant.

· The minimum sum that needs to be assured is Rs 20,000/- and there is no

limit on the amount that can be assured.


· It is important to note that the sum assured should be in multiples of Rs

5000/- only.

· The policy requires the holder to pay a single premium.

Premium payment

Single Premium

The sample premium rates are as under: -

Age Annual Premium per 1000 SA

9 12 15

15 716.40 771.35 804.00

20 717.20 771.85 804.40

25 717.55 772.25 804.95

30 718.45 773.35 806.10

35 721.05 775.75 808.55

40 725.80 780.25 812.95

45 734.10 787.60 819.60

50 746.60 797.90 828.95

55 762.65 811.95 841.75

60 784.80 831.30 859.35

65 816.25 - -

What incentives do I get for a higher sum assured?

Let’s take an example of a 30 year old with a Bima Bachat policy for 12

years. If the sum assured is Rs 45,000 then he has to pay a premium of Rs

34800.75. But for a sum assured amount of Rs 50,000 he will have to pay a


premium of Rs 36734.13 only, thus getting a 5% rebate in premium.

Refer to the table below for other rebate percentages:

Less than Rs. 50,000 NIL

Rs. 50,000 and Less than

Rs.1 lakh5%

Rs. 1 lakh and Less than Rs.2

lakh7%

Rs. 2 lakh and above 8%

4. The Convertible Term Assurance Policy

Features

This plan of assurance is designed to meet the needs of those who are

initially unable to pay the larger premium required for a Whole Life or

Endowment Assurance Policy, but hope to be able to pay for such a policy in

the near future.

This plan would be found useful also in cases where it is desired to leave the

final decision as to the plan to a later date when, perhaps a better choice

could be made.

Suitable For:

For all people with earned income under Category I and unearned incomes

under Category II, basically Standard and sub-Standard lives attracting EMR

classes I and II.

Benefits


Survival Benefit - Not Applicable

Death Benefit - the sum assured is payable only in the event of death

of the Life Assured before the expiry of the specified term.

Plan parameters

Minimum Maximum

Entry age 20 (nearer birthday) 50

Sum assured (Rs.) 50,000 1,00,00,000

Term (years) 5 7

Mode of PaymentMaximum premium

paying period

Policy loan

available

Yearly, Half-

yearly, Quarterly,

Monthly, Salary

Saving Scheme

55 years No

PENSION PLANS

1. New Jeevan Dhara-I

Features

Product summary:

These are Deferred Annuity plans that allow the policyholder to make

provision for regular income after the selected term.


Premiums:

Premiums are payable yearly, half-yearly, quarterly, monthly or through

Salary deduction, as opted by you, throughout the term of the policy or till

earlier death. Alternatively, the premium may be paid in one lump sum

(single premium).

Tax Benefits:

Tax relief under Section 80ccc is available on premiums paid under New

Jeevan Suraksha I (Table No.147). The premiums paid under New Jeevan

Dhara I (Table No.148) qualify for tax relief under Section 88.

Bonuses:

These are with-profit plans and participate in the profits of the Corporation’s

annuity / pension business. Policies get 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) Bonuses may

also be payable provided policy has run for a certain minimum period.

Benefits

Death Benefit:

On death of the Life Assured during the term of the policy the basic

premiums paid, excluding any rider premiums or extra premiums, up to the

date of death accumulated with interest at such rates as decided by the

Corporation will be payable to the nominee. Currently, the interest rate is

3%, 4% or 5 % if the death occurs within the first 10 years, 20 years or

thereafter respectively.

Maturity Benefit:


At maturity the policyholder can encash up to a maximum 25% of the

maturity proceeds as a tax-free lump sum. The balance should be

compulsorily converted to an annuity at the rates applicable at the time of

maturity of the policy. The policyholder has the choice of opting for any one

of 5 annuity options. The annuity options available are:

(i) annuity payable for remainder of life

(ii) annuity payable for life with guaranteed period of 5, 10, 15 or 20 years

(iii) Joint life and last survivor annuity to the annuitant and his/ her spouse

under which annuity payable to the spouse on death of the purchaser will be

50% of that payable to the annuitant

(iv) Life annuity with a return of purchase price on death of the annuitant

(v) Life annuity increasing at a simple rate of 3% per annum




benefits.

Surrender Value:


surrender value is available on the plan on earlier termination of the contract.


The policy may be surrendered after it has been in force for 2 years or more

but before the vesting date. The guaranteed surrender value is 90% of the

basic premiums paid excluding the first year’s premium. In case of a single


premium policy the guaranteed surrender value is allowed after 2 years from

the date of commencement of the policy.


In practice, the company will pay a Special Surrender Value – which is equal

to or higher 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 premium paid.

UNIT PLANS-I

1. Market plus-I

This is a unit linked pension plan wherein the pension is payable after a

specified period. Four types of investment Funds namely Bond, Secured,

Balanced and Growth Fund are offered. Though primarily a Pension product,

the plan has many attractive features and options which make it an ideal

Retirement solution for the future.

BENEFITS

A) - On Vesting:

On vesting of the policy, the Fund Value will be utilized to provide a

pension based on the then prevailing Annuity rates. An option to commute

up to one third of the payable benefit in a lump sum is available.


B) On Death:

In event of the unfortunate death of the policy holder the Fund Value along

with the Riders, if any, will be payable in a lump sum or as a pension.

OPTIONS

Three attractive benefits, viz. - Life Cover, Accident Benefit and Critical

Illness Benefit are available as options or riders. Life option is available

within certain limits depending on the age at entry of the life assured. The

other options are available to all proposers who have opted for Life Cover.

The quantum of the risk covers can also be reduced; subject to the minimum

limits, once a year. A policy can be taken without any of the riders also.

REVIVAL

An attractive feature of the plan is that provided the premiums have been

paid for a minimum period of three years, all the riders under the policy will

continue for a period of two years from the due date of first unpaid premium

by deduction of relevant charges from the policy fund. This period of two

years is called the “Revival Period”. Further, if premiums have been paid for

a minimum period of three years, revival can be effected merely by paying

the arrears of premium, within the Revival Period.

PAYMENT OF PREMIUMS

Premiums can be paid in a lump sum (single premium) and also by monthly

(ECS), quarterly, half-yearly and yearly modes.

CHANGE IN FUND TYPE (SWITCH)

The plan also allows a policy holder to switch from one type of fund to

another up to four times a year, free of charge.

OTHER FEAUTRES

There will be no spread between the Bid and Offer price. The Net Asset


Value (NAV) will be declared on a daily basis. Additional premium in

multiples of Rs.1,000 can be paid without any limit at anytime during the

term of policy.

SPECIAL PLANS

1. Bima Nivesh

Features

Bima Nivesh 2005 is a plan with compound rate of guaranteed additions and

loyalty additions. This is the revised version of our popular Bima Nivesh

Plan 2004 and is introduced to meet the overwhelming demand for a single

premium plan from our customers. It is a single premium, ideal investment

plan for those who have no regular income but good periodical income. Bima

Nivesh 2005 is available for terms 5 and 10 years. The guaranteed surrender

value is payable after the policy has run for at least one year. Term

Assurance Rider is also available by payment of a single premium at the

option of the proposer.

Benefits

Guaranteed Additions: Guaranteed additions at the compound rate of

Rs.50 per thousand Sum Assured per annum for the policy with term of 5

years and at the compound rate of Rs.55 per thousand Sum Assured per

annum for the policy with term of 10 years.

Loyalty Addition: Depending upon the Corporation's experience with

regard to mortality, interest and expenses and based on term of the policy,


Loyalty addition, if any, may be declared by the corporation and paid on

maturity.

Maturity Benefit: The Basic Sum Assured along with compounded

Guaranteed Additions will be payable. Loyalty addition, if any, will also be

added to this benefit.

Payment on death: In case of the unfortunate death of the Life Assured

during the term of the policy, Sum Assured along with the accrued

guaranteed additions will be payable.

Surrender Value: Surrender value is payable after the policy has run at

least for one year.

Riders: Term Assurance rider is available.

Eligibility conditions and other restrictions

For the Main Plan Term Assurance Option

Min. Age at

entry

13 years

completed18 years completed

Max. Age at

entry70 years 50 years

Max. Maturity

Age75 years 60 years

Policy Term 5 yrs. and 10 yrs Same as main plan

Sum Assured Rs.25,000. Min. Sum Assured -

Rs.1,00,000/-


Maximum – No

limit.

Max. Sum Assured - An

amount up to the basic Sum

Assured for Term Assurance

subject to a maximum of Rs.25

lakh overall Option limit, under

all policies of the life assured.

Premium Rates:

Single Premium rates for Rs.1000 Sum Assured are Rs.995 for 5 years term

and Rs. 976 for 10 years term;

The Term Rider Premium depends on the age nearer birthday and the term of

the policy.

REBATES

1% of basic premium on the premium in excess of Rs.50,000.

Rs.500 plus 1.5% of basic premium on the premium in excess of

Rs.1,00,000.

LOAN

Loan will be available to the policyholders under this plan within the

Surrender Value.

GROUP SCHEME

1. Group Term Insurance Scheme

A) Nature of the Scheme:

Group (term) Insurance Scheme is meant to provide life insurance protection

to groups of people. Administration of the scheme is on group basis and cost

is low. Under Group (Term) Insurance Scheme, life insurance cover is

allowed to all the members of a group subject to some simple insurability


conditions without insisting upon any medical evidence. Scheme offers

covers only on death and there is no maturity value at the end of the term.

B) Premium Chargeable:

Group (Term) Insurance Scheme is at present offered under One Year

Renewable Group term assurance plan (OYRGTA). Every year on Annual

Renewal date LIC charges the premium depending upon the changes in size

and age distribution of the age group.

C) Different Schemes:

Group (term) Insurance Scheme has a number of varieties. The Scheme may

provide for a uniform cover to all members of the group or graded covers for

different categories of members, cover for all amounts of outstanding

housing loans or vehicle advances, or some other benefits (e.g., life cover to

supplement pension or PF benefits in case of death). The schemes may have

add-ons like Double Accident Benefit, Critical Illness Benefit, Disability

benefit etc.

D) General Features of various Group Insurance Schemes:

1. PREMIUM:

The premium under such scheme may be wholly paid by the employer or the

Nodal Agency. However, the scheme may be contributory i.e. the members

may also contribute.

2. DOUBLE ACCIDENT BENEFIT:

Double Accident Benefit, i.e. payment of double the sum assured on death

due to accident (without permanent disability benefit), may be allowed under

Group Insurance Schemes for an extra premium.

3. ELIGIBILITY:

For Group Insurance Scheme in lieu of EDLIS the insurability condition is


that should be a member of the Provident Fund Scheme of the employer. For

other GI Schemes of employer-employee groups the insurability condition is

that the member should not be absent on ground of sickness on the entry

date.

4. ADMINISTRATION OF THE SCHEME:

At the commencement and thereafter on each Annual Renewal Date, the

Group Policyholder will have to send all the member's data (and particulars

of the new entrants from time to time) to the P & GS unit of LIC. Detailed

OYRGTA premium calculation will be made on each Annual Renewal Date.

2. Janashree Bima Yojana (JBY)

Features

The objective of the scheme is to provide life insurance protection to the

rural and urban poor persons below poverty line and marginally above the

poverty line.

ELIGIBILITY:

A person who is

*Aged between 18 and 59 years.

*Below or marginally above poverty line

*A member of any of the approved vocation/occupation groups

NODAL AGENCY:

A State Government Department which is concerned with the welfare of any

such vocation/occupation group, a Welfare Fund/ Society, Village

Panchayat,NGO,Self-Help Group,etc.

MINIMUM MEMBERSHIP SIZE:

Twenty five.


FORMS FOR JANASHREE BIMA YOJANA

1. Claim form & discharge receipt under JBY (Annexure A)

2. Application for scholarship under Shiksha Sahayog Yojana (Proforma A)

3. List of students eligible for scholarship under Shiksha Sahayog Yojana

(Proforma B)

4. Certificate of utilization ( Proforma C )

Benefits

In the events of

*Death (other than by accident) of the member, an amount of Rs.30,000/- is

payable.

*death/total permanent disability, due to accident, an amount of Rs.75,000/-

is payable.

*Permanent partial disability, due to accident, an amount of Rs.37,500/- is

payable.

PREMIUM:

*The premium under the scheme is Rs.200/-per annum per member. *50% of

the premium i.e. Rs.100/- will be contributed by the member and/or Nodal

Agency/State Government.

*Balance 50% will be borne by the Social Security Fund.

APPROVED VOCATION & OCCUPATIONAL GROUPS:

A) The group that can be covered are like workers in -

(i) Foodstuffs like khandsari

(ii) Textile


(iii) Manufacture of wood products

(iv) Manufacture of paper products

(v) Manufacture of leather products

(vi) Printing

(vii) Rubber and coal products

(viii) Chemical products like candle manufacture

(ix) Mineral products like earthen toys manufacture

(x) Fire cracker's workers

(xi)Construction workers .

B) The occupational groups are :

Beedi workers, Brick Kiln Workers(Jalandhar),Carpenters, Cobblers,

Fisherman, Hamals, Handicraft Artisans, Handloom Weavers, Handloom and

Khadi Weavers, Lady Tailors, Leather and Tannery Workers, Papad Workers

attached to 'SEWA', Physically Handicapped self- Employed Persons,

Primary Milk Producers, Rickshaw Pullers/ Auto Drivers, Safai

Karmacharis, Salt Growers, Tendu Leaf Collectors, Scheme for the Urban

Poor, Forest Workers, Sericulture, Toddy Tappers, Powerloom Workers,

Scheme for Women in Remote Rural Hilly Areas.

PLAN’S NAVThe net asset value of different schemes of life insurance Corporation of

India for the insured’s is as follows:

NAV TABLE



NAV'S AS ON DATE 21.08.2009EFFECTIV

E FOR 21.08.2009

BASIC

UNIT

VALUE

NAV AS

ON DATE

REPURC

HASE

VALUE

SALE

VALUE

BIMA PLUS (140)

DATE

OF

LAUNC

H

02.02.200

1

SECURED FUND 10 27.1060 25.7507 27.1060

BALANCED FUND 10 32.4856 30.8613 32.4856

RISK FUND 10 44.2874 42.0730 44.2874

FUTURE PLUS

(172)

DATE

OF

LAUNC

H

04.03.200

5

BOND FUND 10 13.1779 13.1779 13.1779

INCOME FUND 10 15.0405 15.0405 15.0405

BALANCED FUND 10 15.6018 15.6018 15.6018

GROWTH FUND 10 19.5666 19.5666 19.5666

DATE

OF

TAX BENEFITS

The aggregate amount of deduction under all the relevant sections viz.

section 80C, section 80CCC and section 80CCD shall not, exceed Rs.1

Lakh.

1) Deduction from Income for payment of Premium (Sec. 80C).

(a) Life Insurance premia:

The insurance premia paid for a policy is eligible for deduction. The

premium paid should not be in excess of 20% of capital sum assured.

(b) Contribution to Deferred Annuity Plans:

The premia paid for a Deferred Annuity; provided such contract does not

contain a provision to exercise an option by the insured to received a cash

payment in lieu of the payment of annuity is eligible for deduction.

(c) Contribution to Pension/Annuity Plans:

Contribution to New Jeevan Dhara-I and New Jeevan Akshay-V Schemes

of LIC are qualified for rebate under this section.

2) Income tax exemption on Maturity/Death Claims proceeds under

Section 10(10D)

All the benefits payable under a Life Insurance policy are tax free. However

in cases the premium paid in excess of 20% of the capital sum assured

within a year, benefits paid excess of premiums will be taxable. The



E FOR 21.08.2009

BASIC

UNIT

VALUE

NAV AS

ON DATE

REPURC

HASE

VALUE

SALE

VALUE

BIMA PLUS (140)

DATE

OF

LAUNC

H

02.02.200

1

SECURED FUND 10 27.1060 25.7507 27.1060

BALANCED FUND 10 32.4856 30.8613 32.4856

RISK FUND 10 44.2874 42.0730 44.2874

FUTURE PLUS

(172)

DATE

OF

LAUNC

H

04.03.200

5

BOND FUND 10 13.1779 13.1779 13.1779

INCOME FUND 10 15.0405 15.0405 15.0405

BALANCED FUND 10 15.6018 15.6018 15.6018

GROWTH FUND 10 19.5666 19.5666 19.5666

DATE

OF

benefits from a key man Insurance policy and any sum received under Sec

80DD, Sub-section (3) are also taxable.

3) Jeevan Nidhi Plan & New Jeevan Suraksha - I Plan (U/s. 80CCC)

Amounts paid from the taxable income to premiums of the above

annuity are deductible.

4) Deduction under section 80D Medical Premium paid for a Health

Insurance policy is deductible to the extent of Rs. 15000 for an assessee

and/or his family members’ policy/s. A separate exemption to the

extent of Rs. 15,000 for premiums paid for an assessee’s parent is also

available. If any one or both of the parents are Senior citizens, then an

enhanced exemption limit of Rs. 20,000 is available. Section 80D also

covers payment of premium exclusively for Critical Illness Rider.

5) Jeevan Aadhar Plan (Sec.80DD)

Premium paid for LIC’s Jeevan Aadhar Plan (for the maintenance of an

handicapped dependent) is eligible for deduction from the total income to

the extent of Rs.50,000 and to the extent of Rs.75,000/- where handicapped

dependent is suffering from specified severe disability.

6) Exemption in respect of commutation of pension under Jeevan

Suraksha & Jeevan Nidhi Plans. (Section 10(10A):

A payment received by way of commutation of pension from Jeevan

Suraksha & Jeevan Nidhi Annuity plans is exempt from tax



E FOR 21.08.2009

BASIC

UNIT

VALUE

NAV AS

ON DATE

REPURC

HASE

VALUE

SALE

VALUE

BIMA PLUS (140)

DATE

OF

LAUNC

H

02.02.200

1

SECURED FUND 10 27.1060 25.7507 27.1060

BALANCED FUND 10 32.4856 30.8613 32.4856

RISK FUND 10 44.2874 42.0730 44.2874

FUTURE PLUS

(172)

DATE

OF

LAUNC

H

04.03.200

5

BOND FUND 10 13.1779 13.1779 13.1779

INCOME FUND 10 15.0405 15.0405 15.0405

BALANCED FUND 10 15.6018 15.6018 15.6018

GROWTH FUND 10 19.5666 19.5666 19.5666

DATE

OF

CHAPTER-5

FINDINGS



E FOR 21.08.2009

BASIC

UNIT

VALUE

NAV AS

ON DATE

REPURC

HASE

VALUE

SALE

VALUE

BIMA PLUS (140)

DATE

OF

LAUNC

H

02.02.200

1

SECURED FUND 10 27.1060 25.7507 27.1060

BALANCED FUND 10 32.4856 30.8613 32.4856

RISK FUND 10 44.2874 42.0730 44.2874

FUTURE PLUS

(172)

DATE

OF

LAUNC

H

04.03.200

5

BOND FUND 10 13.1779 13.1779 13.1779

INCOME FUND 10 15.0405 15.0405 15.0405

BALANCED FUND 10 15.6018 15.6018 15.6018

GROWTH FUND 10 19.5666 19.5666 19.5666

DATE

OF

FINDINGS

Findings: After completing the study following points can be drawn:

1. It has one of the single distribution networks amongst government

insurance players.

2. LIC has many numbers of insurance policies and plans having flexible to

meet the customers’ requirement and expectation.

3. LIC entered the market with aggressive marketing and supported by after

sale services with the help of technology.

4. All LIC Plans come with Sovereign Guarantee i.e., Government of India

Guarantee regarding repayment. Infact, as of now, only LIC plans enjoy this

Government Guarantee.



E FOR 21.08.2009

BASIC

UNIT

VALUE

NAV AS

ON DATE

REPURC

HASE

VALUE

SALE

VALUE

BIMA PLUS (140)

DATE

OF

LAUNC

H

02.02.200

1

SECURED FUND 10 27.1060 25.7507 27.1060

BALANCED FUND 10 32.4856 30.8613 32.4856

RISK FUND 10 44.2874 42.0730 44.2874

FUTURE PLUS

(172)

DATE

OF

LAUNC

H

04.03.200

5

BOND FUND 10 13.1779 13.1779 13.1779

INCOME FUND 10 15.0405 15.0405 15.0405

BALANCED FUND 10 15.6018 15.6018 15.6018

GROWTH FUND 10 19.5666 19.5666 19.5666

DATE

OF

CHAPTER-6

CONCLSION



E FOR 21.08.2009

BASIC

UNIT

VALUE

NAV AS

ON DATE

REPURC

HASE

VALUE

SALE

VALUE

BIMA PLUS (140)

DATE

OF

LAUNC

H

02.02.200

1

SECURED FUND 10 27.1060 25.7507 27.1060

BALANCED FUND 10 32.4856 30.8613 32.4856

RISK FUND 10 44.2874 42.0730 44.2874

FUTURE PLUS

(172)

DATE

OF

LAUNC

H

04.03.200

5

BOND FUND 10 13.1779 13.1779 13.1779

INCOME FUND 10 15.0405 15.0405 15.0405

BALANCED FUND 10 15.6018 15.6018 15.6018

GROWTH FUND 10 19.5666 19.5666 19.5666

DATE

OF

CONCLUSION

After completing the project it is concluded that LIC develop its various

plans and policies, flexible in nature, according to the requirements of its

targeted market or customers and is thus beneficial to its customers in

various ways. The most important benefit it provides to its customers is that

it is a government owned company. This lead to increase in the satisfaction

level of its customer that is why LIC has more than 200 million

policyholders which is equal to the fourth largest country in world. Therefore

it is not only beneficial but better than other insurance companies not only

regarding its product but also its services.


BIBLIOGRAPHY

Information and data used in the project has been collected from the

following sources:-

1. www.licindia.com

2. www.licmutual.com

3. www.lichousing.com

4. www.wikipedia.org

5. www.reportbuyer.com

6. Outlook Money Magazine

12th August 2009, 09 September 2009

7. Money Today Magazine

11 June 2009, September 2009

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