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A

PROJECT REPORT ON

CAMPARATIVE STUDY OF
LIFE INSURANCE CORPORATION OF INDIA

Submitted to:
Mr. ____________________

PROJECT GUIDE & FACULTY


(SETH GL BIHANI SD PG COLLEGE)

Submitted By:
RAHUL GOYAL

SUBMITTED IN PARTIAL FULFILMENT OF

BACHELOR OF BUSINESS ADMINISTRATION


(Final Year)

(MAHARAJA GANGA SINGH UNIVERSITY, BIKANER)


CONTENTS

 CERTIFICATE OF COMPANY………………….……….. i
 CERTIFICATE OF INSTITUTE………………………….. ii
 ACKNOWLEDGEMENT…………………………………...iii

1. EXECUTIVE SUMMERY

2 INTRODUCTION

3. RESEARCH OBJECTIVE & METHODOLOGY

4. INTRODUCTION OF THE COMPANY

5. PRODUCT OF LIC

6. GROWTH OF PVT. LIFE INSURANCE COMPANIES IN THE LAST 5

YEARS

7. CURRENT STANDING OF PVT. LIFE INSURANCE COMPANIES IN

URBAN SECTOR

8. ROLE OF FOREIGN COMPANIES IN INDIA

9. FINDINGS

10. IMPORTANCE OF JOINT VENTURE

11. CONCLUSION

12. RECOMMENDATIONS

13. BIBLIOGRAPHY

2
CERTIFICATE
This is to certify that project entitled “Comparative Study of
Life Insurance Corporation of India” submitted by Mr.
RAHUL GOYAL (Enrolment no. - --------------) has been done
under my guidance and supervision in fulfillment of the
requirement for the award of Bachelor of Business
Administration

The work and analysis mentioned in this project report have


been undertaken by the candidate himself and necessary
references have been recognized and acknowledged in the text
of the report.

Mr. RAMNARAYAN MUNJRAL


LIC OF INDIA

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ACKNOWLEDGEMENT

Co-operation and building up of moral are the essence of success. These


are two factors that go a long way in achieving it. It is a Herculean task,
which lacks these two determinants of success. Summer training was an
exposure to corporate environment. It was an opportunity and great
pleasure for me to be in such an environment and having interaction with
concerned people.

I am highly obliged to _________________ (Development officer, LIC)


who provided me the opportunity for doing my summer training at LIC,
and would like to thank him for their guidance and help which had made
it possible for me to complete my project work successfully.

Finally, I would like to thank __________________ (Director), SETH GL


BIHANI SD PG COLLEGE, SGNR my project guide at the institute, for
their enlightening and meticulous guidance for the consummation and
evaluating of this project.

I also wish to pay my sincere regards to all my respected teachers who


helped me build a concrete platform before sending me for training so
that I can land out firmly in all respects.

RAHUL GOYAL
BBA FINAL YEAR

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EXECUTIVE SUMMARY

Someone has greatly said that practical knowledge is far better than
classroom teaching. During this project I fully realized this and come to
know about the present real world of Insurance sector. It includes all the
activities involved in providing insurance products to the final customers.
I am pleased to know about the consumers’ wants and competitors
activities in the real world of Insurance.

The subject of my study is to analyze the present insurance sector and


products offered by LIC by applying various tools like cold calling and
through direct interaction with customer’s. I have also done research on
the growth of private life insurance companies in the last five years.

The report contains first of all brief introduction about the


company. Then it contains the current status of private
insurance companies and foreign insurance companies in
India.

I also put forward recommendations of the consumers and conclusions


that will help LIC to provide consumer satisfactory services in the
insurance sector.

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INTRODUCTION

Insurance is a social device where uncertain risks of individuals

may be combined in a group and thus made more certain - small

periodic contributions by the individuals provide a found out of

w h i c h t h o s e w h o s u ff e r l o s s e s m a y b e r e i m b u r s e d . I n a d d i t i o n t o

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

e ff i c i e n t c o n d u i t f o r t h e s a v i n g o f p e o p l e t o b e c h a n n e l e d t o w a r d s

economic growth. In India, the Insurance Industry7 is more than

1 5 0 y e a r s o l d . To d a y, i t i s m o n o p o l i z e d b y t w o P S U ' s i n t h e i r

r e s p e c t i v e f i e l d s o f l i f e a n d G e n e r a l I n s u r a n c e . H o w e v e r, w i t h t h e

successful passage IRDA Bill through both houses of parliament in

December 1999 the sector has been opened up to private players.

This will provided much. Needed impetus to the Industry and will

improve the quality of service and products and will also increase

employment opportunities. There are still some issues their need to

be sorted out, particularly with regard to the status of

i n t e r m e d i a r i e s a s e n v i s a g e d b y t h e I n s u r a n c e R e g u l a t o r y A u t h o r i t y.

RESEARCH OBJECTIVE
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The report gives the brief background of the sector and proceeds to

highlight the short comings of the existing setup and players. The

benefits of liberalized sector are enumerated. The report also tries

to identify the market potential for insurance products and the

strategy that can we employed to exploit the same. The stress is

also given on knowing the awareness level of general public .

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RESEARCH METHODOLOGY

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

research design is basically a blue print of how a research is to be conducted, it may

include;

1. Choosing the approach

2. Determining the types of data needed.

3. Locating the source of data.

4. Choosing a method of data.

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RESEARCH DESIGN
Basically there are 3 types of approaches used during the any research:

1. Exploratory

2. Descriptive

3. Experimental.

During this research Descriptive and Exploratory approach is taken into

consideration because of the availability of relevant information to describe the

relationships between the marketing problem and the available information.

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TYPES OF DATA USED:
Both primary and secondary data is used in the research.

Data Collection Methods

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

SECONDARY DATA

Secondary data is one which already exists and is collected from the published

sources.

The sources from which secondary data was collected are:

 Newspapers and Magazines like Economic Times, Insurance Times, and Insurance

Post.

 Internet

PRIMARY DATA

The primary sources of data refer to the first hand information Primary data is

collected during the survey with the help of Questionnaires.

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INTRODUCTION OF THE COMPANY

“LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance Corporation of India (LIC) was formed in September, 1956, by an Act

of Parliament, viz., Life Insurance Corporation Act, 1956, with capital contribution

from the Government of India. The then Finance Minister, Shri C.D. Deshmukh,

while piloting the bill, outlined the objectives of LIC thus to conduct the business

with the utmost economy, and a spirit of trusteeship; to charge premium no higher

than warranted by strict actuarial considerations; to invest the funds for obtaining

maximum yield for the' policy holders consistent with safety of the capital; to render

prompt and efficient service to policy holders, thereby making insurance widely

popular. Since nationalization, LIC has built up a vast network of 2,048 branches, 100

divisions and 7 zonal offices spread over the country. The Life Insurance Corporation

of India also' transacts business abroad and has offices in Fiji, Mauritius and United

Kingdom. LIC is associated with joint ventures abroad in the field of insurance,

namely, Ken-India ,Assurance Company Limited, Nairobi; United Oriental Assurance

Company Limited, Kuala Lumpur and Life Insurance Corporation (International) E.C.

Bahrain. The Corporation has registered a joint venture company in 26th December,

2000 in Katmandu, Nepal by the name of Life Insurance Corporation (Nepal) Limited

in collaboration with Vishal Group Limited, a local industrial Group. An off-shore

company L.I.C. (Mauritius) Off-shore Limited has also been set up in 2001 to tap the

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African insurance market.

General Insurance:

General insurance business in the country was nationalized with effect from 1st

January, 1973 by the General Insurance Business (Nationalization) Act, 1972. More

than 100 non-life insurance companies including branches of foreign companies

operating within viz., the National Insurance Company Ltd., The New India

Assurance Company Ltd., The Oriental Insurance Company Ltd., and The United

India Insurance Company Ltd. with head offices at Calcutta, Bombay, New Delhi and

Madras, respectively. General Insurance Corporation (GIC) which was the holding

company of the four public sector general insurance companies has since been

delinked from the later and has been approved as the "Indian Reinsurer" since 3rd

November 2000. The share capital of GIC and that of the four companies are held by

the Government of India. All the five entities are Government companies registered

under the Companies Act, 1956. The general insurance business has grown in spread

and volume after nationalization. The four companies have 2699 branch offices, 1360

divisional offices and 92 regional offices spread all over the country. GIC and its

subsidiaries have representation either directly through branches or agencies in 16

countries and through associate locally incorporated subsidiary companies in 14 other

countries. A wholly- owned subsidiary company of GIC, i.e. Indian International Pvt.

Ltd. is operating in Singapore and there is a joint venture company, viz. Ken-India

Assurance Ltd. in Kenya. A new wholly owned subsidiary called New India

International Ltd., UK has also been registered.

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PRODUCTS OF LIC

Whole Life with Profits Plan – 002

Features:

This plan is mainly devised to create an estate for the heirs of the policyholder as the

plan basically provides for payment of sum assured plus bonuses on the death of the

policyholder. However, considering the increased longevity of the Indian population,

the Corporation has amended the above provision, thereby proving for payment of

sum assured plus bonuses in the form of maturity claim on completion of age 80 years

or on expiry of term of 40 years from date of commencement of the policy whichever

is later.

The premiums under the policy are payable up to age 80 years of the policyholder or

for a term of 35 years whichever is later. If the payment of premium ceases after 3

years, a paid-up policy for such reduced sum assured will be automatically secured

provided the reduced sum assured exclusive of any attached bonus is not less than

Rs.250/-. Such reduced paid-up policy is not entitled to participate in the bonus

declared thereafter but the bonuses already declared on the policy will remain attach,

provided the policy is converted in to a paid-up policy after the premiums are paid for

5 years.

Suitable For:

This policy is suitable for people of all ages who wish to protect their families from

financial crises that may occur owing to the policyholder's premature death.

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BENEFITS

SURVIVAL BENEFIT:

Sum assured plus accrued bonuses and the terminal bonuses, if any; on the

policyholder attaining age 80 years or on expiry of term of 40 years from the date of

commencement of the policy whichever is later.

DEATH BENEFIT:

Sum assured plus accrued bonuses and the terminal bonuses, if any, on the death of

the policyholder are paid to his/her nominees/heirs.

LIMITED PAYMENT WHOLE LIFE - PLAN 005 (WITH PROFITS)

Features:

This is the best form of life assurance for family provision since it enables the Life

Assured to pay all the premiums during the ordinarily vigorous and most productive

years of life. He need not pay any premium in the later stages of life if and when his

conditions might become adverse.

With Profits Limited Payments Policies do not cease to participate in profits after

completion of the premium paying period but continue to share in the periodical

Bonus Distribution until the death of the Life Assured.

The Without-Profit option is available under Table no. 3. If the policyholder pays at

least 3 years' premiums and then discontinues paying any more premiums, a reduced

paid-up assurance policy comes into force. Such a reduced paid-up Policy will not be

entitled to participate in the profits declared. Thereafter, but such Bonus as has

already been declared on the Policy will remain attached thereto. The premium paying

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term under this plan is five years minimum and 55 years maximum.

BENEFITS

Survival benefits

If the Life Assured survives the premium paying period and the policy continues in

full force, provided all premiums have been paid, but no further premiums are

required to be paid.

Death Benefits:

Sum Assured plus Bonuses accrued and vested in the policy.

Plan Parameters:

Minimum Maximum

Entry age 12 (nearer birthday) 60

Sum assured (Rs.) 50000 NO LIMIT

Term (years) 5 55 (Max. Premo ceasing

age is 70)

Mode of Payment Maximum premium paying period Policy loan

available

Yearly, half yearly 80 yrs. of age or 40 yrs.of yes

,quarterly, monthly premium paying term from the

, salary saving date of commencement whichever

Scheme is later.

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ENDOWMENT WITH PROFIT PLAN - 014

FEATURES:

 Moderate Premiums

 High bonus

 High liquidity

 Savings oriented

This policy not only makes provisions for the family of the Life Assured in event of

his early death but also assures a lump sum at a desired age. The lump sum can be

reinvested to provide an annuity during the remainder of his life or in any other way

considered suitable at that time.

Premiums are usually payable for the selected term of years or until death if it occurs

during the term period.

Suitable For:

Being an endowment assurance policy, this plan is apt for people of all ages and social

groups who wish to protect their families from a financial setback that may occur

owing to their demise.

The amount assured if not paid by reason of his death earlier will payable at the end

of the endowment term where it can be invested in an annuity provision for the rest of

the policyholder's life or in any other way he may think most suitable at that time.

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BENEFITS

Disability Benefit:

In case policy holder becomes totally and permanently disabled due to an accident

before reaching the age of 70 and the policy is in full force, he will not be required to

pay further premiums, (the Disability Benefit is available in respect of the first

Rs.20000 sum assured on anyone life) and the policy will continue to be in force.

Accident Benefit:

By paying a small extra premium of Rs. l per Rs. 1000/- sum assured per year he or

his family are entitled to the following benefits on death or permanent disability

caused by accident. Even students above the age of 18 years can avail of this benefit.

Premium Stoppage:

If payment of premiums ceases after at least THREE years' premiums have been

paid , a free paid-up policy for a reduced sum assured will be automatically secured

provided the reduced sum assured, exclusive of any attached bonus, is not less than

Rs. 250/-. The reduced sum assured will become payable on the event as stipulated in

the policy.

Bonus:

Is there anything extra payable besides the sum assured at the time of claim

settlement? Yes, but only if it is a 'with profits' policy. Every year the Life Insurance

Corporation distributes its surplus among policyholder to 'with profits' polices in the

form of bonuses. Substantial bonuses have been declared in the past after each

valuation of policy liabilities.

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BENEFITS

Survival benefits:

Payment of full Sum' Assured + Vested Bonus + Final Additional bonus, if any.

Death Benefits:

Payment of full sum assured + Vested Bonus.

Plan Parameters:

Minimum Maximum

Entry Age (years) 12 65

Sum Assured (Rs.) 50000 no limit

Term (years) 5 55

Mode Of Payment Max Maturity Age Policy loan available

Monthly, Quarterly, 75 years yes

Half Yearly, Yearly,

Salary Saving Scheme.

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ANMOL JEEVAN - I (WITHOUT PROFITS)

BENEFITS

On Death during the Term of the Policy: Sum Assured

On Maturity : Nil

RESTRICTIONS

(A) Minimum age at entry : 18 years (completed)


(B) Maximum age at entry : 55 years (nearer birthday)
(C) Maximum age at maturity : 65 years
(D) Minimum Term : 5 years
(E) Maximum Term : 25 years
(F) Minimum Sum Assured : Rs. Five Lakh
(G) Maximum Sum Assured : Rs. Three Crore (Inclusive of all

term Assurance plans)

Note: The policy would be issued in multiples of Rs. one lakh for Sum Assured

above Rs. five lakh.

(H) Mode of Premium Payment: Yearly, Half- Yearly and Single premium.

(G) Rebates:

 Sum Assured Rebate: NIL in case of regular premium policies and Re. l

Sum Assured for policies of Rs.25 lakh and above in case of single

premium policies.

 Mode Rebate : 1% of Annual premium for yearly mode and nil for

Half-Yearly mode.

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UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS:

The plan is available to Standard and Sub-standard lives (upto Class VI EMR). This

plan is also available to female lives (category I and II lives only) and to physically

handicapped persons subject to certain conditions. Standard age proof will have to be

submitted along with the Proposal Form.

PAID-UP AND SURRENDER VALUE:

 The policy will not acquire any paid-up value.

 No Surrender Value will be available under this plan.

GRACE PERIOD FOR NON-FORFEITURE PROVISIONS:

A grace period of 15 days will be allowed for payment of yearly or half-yearly

premiums. If death occurs within this period and before the payment of the premium

then due, the policy will still be valid and the Sum Assured paid after deduction of the

said premium as also unpaid premiums falling due before the next policy anniversary

of the Policy. If the premium is not paid before the expiry of the days of grace, the

Policy gets lapsed.

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REVIVAL

If the Policy has lapsed, it may be revived during the life time of the Life Assured, but

before the date of expiry of policy term, on submission of proof of continued

insurability to the satisfaction of the Corporation and the payment of all the arrears of

premium together with interest at such rate as may be prevailing at the time of the

payment. The corporation reserves the right to accept or decline the revival of

discontinued policy. The revival of the discontinued policy shall take effect only after

the same is approved by the Corporation and is specifically communicated to the Life

Assured. The cost of the Medical reports, including Special Reports, if any, required

for the purposes of revival of the policy, should be borne by the Life Assured.

PAYMENT OF CLAIMS

No Claims concession will be applicable to this Policy.

BACK-DATING INTEREST

The policy can be back dated within the financial year. No dating back interest shall

be charged.

BENEFITS

Survival benefits:

If one or both the lives survive to the maturity date, the sum assured, along with the

accumulated bonus, is payable.

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Death Benefits:

In case either of the couple dies during the policy's term, two things happen. One, LIC

pays to the surviving spouse the full sum assured. And, two, the policy continues on

the life of the surviving partner without him/her having to pay any further premiums,

i.e. the life cover on the survivor continues free of cost.

The sum assured is again be payable on the death of the other partner in case both the

husband and wife were to die during the term of the policy. Vested bonus would also

be paid along with the sum assured on the second death.

NEW INSURANCE SCHEMES

Universal Health Insurance Scheme

The Universal Health Insurance policy is available to groups of 100 or more families.

The policy provides for reimbursement of medical expenses upto Rs.30000/- towards

hospitalization floated amongst the members of the family, death cover due to an

accident for Rs.25000 to the earning head of the family and compensation due to loss

of earning head of the family @ Rs.50/- per day upto a maximum of 15 days, after a

waiting period of three days, when the earning head of the family is hospitalized. The

premium under the policy is Rs.1! - Per day (Le. Rs.365/-per annum) for an

individual, Rs. 1.50 per day for a family of five limited to spouse and children (i.e.

Rs.548 per annum), and Rs.2/- per day (i.e. Rs. 730 per annum) for covering

dependent parents within the overall family size of seven. A subsidy of Rs. 100 per

year towards annual premium for "Below Poverty Life" families is also provided

under the Scheme.

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For purpose of this policy HOSPITAL means:

 Any Hospital/Nursing home registered with the local authorities and under the

supervision of a registered and qualified Medical practitioner.

 Hospital, Nursing Home runs by Government.

 Enlisted hospitals run by NGOs/ Trusts/ selected private hospitals with fixed

schedule of charges.

 Hospitalization should be for a minimum period of 24 hours.

However, this time limit is not applied to some specific treatments and also where due

to technological advancement hospitalization for 24 hours may not be required.

Main Exclusions:

 All pre-existing diseases.

 Corrective, cosmetic or aesthetic dental surgery or treatment.

 Cost of spectacles, contact lens and hearing aid.

 Primarily diagnostic expenses not related to sickness/injury.

 Treatment for Pregnancy, Childbirth, Miscarriage, abortions etc.

Age Limitations:

This policy covers people between the age of 3 months to 65 years.

Floater Basis:

The benefit of family' will operate on floater basis i.e. the total reimbursement of Rs.

30,000/- can be availed of individually or collectively by members of the family.

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Insurance plans:

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

requirements are different from that of the others. LIC’s Insurance Plans are a policy

that talk to you individually and gives the most suitable options that can fit ones’

requirement.

Jeevan Anurag Komal Jeevan


CDA Endowment Vesting At 21 Marriage Endowment Or
CDA Endowment Vesting At 18 Educational Annuity Plan
Jeevan Kishore Jeevan Chhaya
Child Career Plan Child Future Plan

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

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Jeevan Surabhi-20 Years
Jeevan Surabhi-25 Years
Jeevan Rekha (closed for sale)
Bima Bachat

Jeevan Bharati

The Whole Life Policy


The Whole Life Policy- Limited Payment
The Whole Life Policy- Single Premium
Jeevan Rekha (closed for sale)
Jeevan Anand
Jeevan Tarang

Two Year Temporary Assurance Policy


The Convertible Term Assurance Policy
Anmol Jeevan-I
Amulya Jeevan

Jeevan Saathi Mortgage Redemption

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.

 Jeevan plus

 Future plus

 Bima plus

 Market plus

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 Money plus

 Profit plus

 Fortune plus

Fortune plus:

It is a unit linked assurance plan where premium payment term (PPT) is 5 years and
the premium payable in the first year will be 50% of total premium payable under the
policy. The level of cover will depend on the level of premium you agree to pay.

Four types of investment funds are offered. Premiums paid after allocation charge will
purchase units of the Fund type chosen. The Unit Fund is subject to various charges
and value of the units may increase or decrease, depending on the Net Asset Value
(NAV). The plan therefore serves the purpose of insurance-cum-investment.

1. Payment of Premiums: You may pay premiums regularly at yearly, half-yearly,


quarterly or monthly (ECS) intervals for 5 years. The minimum First year premium
will be Rs.20,000/- and you may pay any amount exceeding it. From second year
onwards each year’s premium will be 25% of the first year premium.

Other Features:
i) Partial Withdrawals: You may encash the units partially after the third policy
anniversary subject to the following:

i) In case of minors, partial withdrawals shall be allowed from the policy anniversary
coinciding with or next following the date on which the life assured attains majority
(i.e. on or after18th birthday).

ii) Partial withdrawals may be in the form of fixed amount or in the form of fixed
number of units.

iii) For 2 years’ period from the date of withdrawal, the Sum Assured under the Basic
plan shall be reduced to the extent of the amount of partial withdrawals made.

iv) Under policies where less than 3 years’ premiums have been paid and further
premiums are not paid, the partial withdrawals shall not be allowed.

v) Under policies where atleast 3 years’ premiums have been paid, partial withdrawal
will be allowed subject to Policyholder’s Fund Value being atleast Rs. 10,000/-.

ii) Switching: You can switch between any fund types for the entire Fund Value
during the policy term subject to switching charges, if any.

iii) Discontinuance of premiums: If premiums are payable either yearly, half-yearly,


quarterly or monthly (ECS) and the same have not been duly paid within the days of

26
grace under the Policy, the Policy will lapse. A lapsed policy can be revived during
the period of two years from the due date of first unpaid premium.

I) Where atleast 3 years’ premiums have been paid, the Life Cover and Accident
Benefit rider, if any, shall continue during the revival period.

During this period, the charges for Mortality and Accident Benefit cover, if any, shall
be taken, in addition to other charges, by canceling an appropriate number of units out
of the Policyholder’s Fund Value every month. This will continue to provide relevant
risk covers for:

i. two years from the due date of first unpaid premium, or

ii. Till the date of maturity, or

iii. Till such period that the Policyholder’s Fund Value reduces to Rs. 5,000/-,
whichever is earlier.

The benefits payable under the policy in different contingencies during this period
shall be as under:

A. In case of Death: Higher of Sum assured under the Basic Plan or the Policyholder’s
Fund Value. The Sum Assured shall be subject to provisions of Partial Withdrawals
made, if any.

B. In case of Death due to accident: Accident Benefit Sum Assured in addition to the
amount under A above, if Accident Benefit is opted for.

C. On Maturity: The Policyholder’s Fund Value.

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


Value. The Surrender value, however, shall be paid only after the completion of 3
policy years.

E. In case of Partial Withdrawals: For 2 year’s period from the date of withdrawal, the
sum assured under the basic plan shall be reduced to the extent of the amount of
partial withdrawals made.

II) Where the policy lapses without payment of at least 3 years’ premiums, the Life
Cover and Accident Benefit rider cover, if any, shall cease and no charges for these
benefits shall be deducted. However, deduction of all the other charges shall continue.
The benefits under such a lapsed policy shall be payable as under:

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

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

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H. In case of Surrender (including Compulsory Surrender): Policyholder’s Fund Value
/ monetary value as the case may be, shall be payable after the completion of the third
policy anniversary. No amount shall be payable within 3 years from the date of
commencement of policy.

I. In case of Partial withdrawal: Partial Withdrawals shall not be allowed under such a
policy even after completion of 3 years period.

iv) Revival: If due premium is not paid within the days of grace, the policy lapses. A
lapsed policy can be revived during the period of two years from the due date of first
unpaid premium or before maturity, whichever is earlier. The period during which the
policy can be revived will be called “Period of revival” or “revival period”.

If premiums have not been paid for at least 3 full years, the policy may be revived
within two years from the due date of first unpaid premium. The revival shall be made
on submission of proof of continued insurability to the satisfaction of the Corporation
and the payment of all the arrears of premium without interest.

If at least 3 full years’ premiums have been paid and subsequent premiums are not
paid, the policy may be revived within two years from the due date of first unpaid
premium but before the date of maturity. No proof of continued insurability shall be
required but all arrears of premium without interest shall be required to be paid.

The Corporation reserves the right to accept the revival at its own terms or decline the
revival of a lapsed policy. The revival of a lapsed policy shall take effect only after the
same is approved by the Corporation and is specifically communicated in writing to
the Proposer / Life Assured.

Irrespective of what is stated above, if less than 3 years’ premiums have been paid and
the Policyholder’s Fund Value is not sufficient to recover the charges, the policy shall
be terminated and thereafter revival will not be entertained. If 3 years’ or more than 3
years’ premiums have been paid and the Policyholder’s Fund Value reduces to Rs.
5000/-, the policy shall terminate and Policyholder’s Fund Value as on such date shall
be refunded to the Life Assured and thereafter revival will not be allowed.

v) Settlement Option: When the policy comes for maturity, you may exercise
“Settlement Option” and may receive the policy money in instalments spread over a
period of not more than five years from the date of maturity. There shall not be any
life cover during this period. The value of installment payable on the date specified
shall be subject to investment risk i.e. the NAV may go up or down depending upon
the performance of the fund.

Reinstatement:
A policy once surrendered will not be reinstated.

Risks borne by the Policyholder:


i) LIC’s Fortune Plus is a Unit Linked Life Insurance product which is different from
the traditional insurance products and are subject to the risk factors.

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ii) The premium paid in Unit Linked Life Insurance policies are subject to investment
risks associated with capital markets and the NAVs of the units may go up or down
based on the performance of fund and factors influencing the capital market and the
insured is responsible for his/her decisions.

iii) Life Insurance Corporation of India is only the name of the Insurance Company
and LIC’s Fortune Plus is only the name of the unit linked life insurance contract and
does not in any way indicate the quality of the contract, its future prospects or returns.

iv) Please know the associated risks and the applicable charges, from your Insurance
agent or the Intermediary or policy document of the insurer.

v) The various funds offered under this contract are the names of the funds and do not
in any way indicate the quality of these plans, their future prospects and returns.

vi) All benefits under the policy are also subject to the Tax Laws and other financial
enactments as they exist from time to time.

Cooling off period:


If you are not satisfied with the “Terms and Conditions” of the policy, you may return
the policy to us within 15 days.

Loan:
No loan will be available under this plan.

Assignment:
Assignment will be allowed under this plan.

Exclusions: any amount exceeding it. From second year onwards each year’s
premium will be 25% of the first year premium.

In case the Life Assured commits suicide at any time within one year, the Corporation
will not entertain any claim by virtue of the policy except to the extent of the
Policyholder’s Fund Value on death.

29
MARKET PLUS
“IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS
BORNE BY THE POLICYHOLDER"

LIC’s MARKET PLUS:

This is a unit linked deferred pension plan. You can take the plan with or without risk
cover. You can also choose the level of cover within the limits, which will depend on
whether the policy is a Single premium or Regular premium contract and on the level
of premium you agree to pay.

The allocated premiums will be applied to purchase units as per the Fund type chosen.
Your Unit Account will be subject to deduction of charges as specified in the Policy
Conditions. The value of the units in the Unit Fund may increase or decrease,
depending on the investment return of the assets representing the chosen Fund.

i. Payment of Premiums: You may pay premiums regularly at yearly, half-


yearly or quarterly intervals over the term of the policy. The minimum annual
premium will be Rs.5, 000/- increasing thereafter in multiples of Rs.1, 000/-.
Alternatively, a Single premium can be paid subject to a minimum of
Rs.10,000 and thereafter in multiples of Rs.1, 000.
ii. Benefits:
A) Death Benefit:

If the Life cover is opted for, the Sum Assured under the Basic Plan together
with the Fund Value of units either as a lump sum or as pension. In case the
policy is taken without life cover, then the Fund Value of the units held in the
Policyholder’s Unit Account shall be payable either as a lump sum or as a
pension.

The amount of pension will depend on the then prevailing immediate annuity
rates under the annuity option chosen.

B) Benefit on Vesting:

On your surviving to the date of vesting, the Fund Value of the units held in
your Unit Account will compulsorily be utilized to provide a pension based on
the then prevailing immediate annuity rates under the relevant annuity option.

30
However, you may opt to commute up to one-third of the Benefit to be paid as
a lump sum. Further, you may choose to purchase pension from LIC or other
life insurance company.

Accident Benefit Option: If you have opted for life cover, you may opt for
Accident Benefit equal to life cover subject to minimum Rs. 25,000 and
maximum Rs. 50 lakh (taken all policies with LIC of India and other insurers).
In case of death by Accident, an additional sum equal to Accident benefit will
be payable.

Eligibility Conditions And Other Restrictions:

Basic Plan
Minimum Age at entry
18 years completed
:
Maximum Age at entry 70 years (age nearer birthday). However if
: life cover is opted for, then 65 years
Minimum Age at vesting
40 years (age last birthday)
:
Maximum Vesting Age
75 years (age last birthday)
:
Minimum Deferment Term
5 years
:
Minimum Sum Assured Rs. 25,000 for Single premium
: Rs. 50,000 for Regular premium
Maximum Sum Assured Single Premium - Equal to single premium
: Regular Premium - 20 times of the annualized
premium

i. Investment of Funds: The premiums allocated to purchase units will be


strictly invested according to the investment pattern committed in various fund
types. Various types of fund and their investment pattern will be as under:

Fund Type I Short-term investments Investment in


such as money Listed Equity
market instruments Shares
(including Govt.
Securities & Corporate
Debt)

Bond Fund Not less than 80% 100%


Nil

31
Secured Fund
Not less than 65% Not more than 85% Not less than
15% & not more
than 35%
Balanced Fund
Not less than 50% Not more than 70% Not less than
30% & not more
than 50%
Growth Fund Not more than 40% Not less than
Not less than 20% 60% & not more
than 80%

ii. The Policyholder has the option to choose any ONE of the above 4 funds. In
case no fund has been opted for, the allocated premiums shall, by default, be
invested in the SECURED FUND.

iii. Method of Calculation of Unit price: Units will be allotted based on the Net
Asset Value (NAV) of the respective fund as on the date of allotment. There is
no Bid-Offer spread (the Bid price and Offer price of units will both be equal
to the NAV). The NAV will be computed on daily basis and will be based on
investment in Government / Government Guaranteed Securities /
Corporate Debtnt performance, Fund Management Charge and whether fund
is expanding or contracting under each fund type.

iv. Charges under the Plan: Units will be allotted based on the Net Asset Value
(NAV) of the respective fund as on the date of allotment. There is no Bid-
Offer spread (the Bid price and Offer price of units will both be equal to the
NAV). The NAV will be computed on daily basis and will be based on
investment performance, Fund Management Charge and whether fund is
expanding or contracting under each fund type.

(A) Premium Allocation Charge: This is the percentage of the premium


appropriated towards charges from the premium received. The balance known
as allocation rate constitutes that part of the premium which is utilized to
purchase (Investment) units for the policy. The allocation charges are as
below:

For Single premium policies: 3.3%

For Regular premium policies:

Allocation charge
Premium Band (per annum)

First Year Thereafter


5,000 to 75,000 16.50% 2.50%
75,001 to 1,50,000 15.75% 2.50%
1,50,001 to 3,00,000 15.00% 2.50%

32
3,00,001 to 5,00,000 14.25% 2.50%
5,00,001 and above 13.50% 2.50%
v.
Allocation charge for Top-up: 1.25%

(B) Charges for Risk Covers:

Mortality Charge: This is the cost of insurance cover. These are age specific
and will be taken every month.

Accident Benefit charge: This is the cost of Accident Benefit rider and will
be levied every month at the rate of Rs. 0.50 per thousand Accident Benefit
Sum Assured per policy year.

vi. (C) Other Charges:

Policy Administration charge: Rs. 60/- per month during the first policy
year and Rs. 20/- per month thereafter, throughout the term of the policy.

Fund Management Charge: This is the charge levied as a percentage of the


value of units and shall be appropriated by adjusting NAV at following rates:
0.75% p.a. of Unit Fund for Bond Fund 1.00% p.a. of Unit Fund for ?Secured?
Fund 1.25% p.a. of Unit Fund for Balanced Fund 1.50% p.a. of Unit Fund for
Growth Fund.

Switching Charge: This is the charge levied on switching of monies from one
fund to another. Within a given policy year 4 switches will be allowed free of
charge. Subsequent switches in that year shall be subject to a switching charge
of Rs. 100 per switch.

Bid/Offer Spread: Nil.

Surrender Charge: Nil

Service Tax Charge: A service tax charge shall be levied on the Mortality and
Accident Benefit rider charge, if any, on a monthly basis. The level of this
charge will be as per the rate of service tax as applicable from time to time.
Presently, the rate of Service Tax is 12% with an educational cess at the rate of
2% thereon and hence effective rate is 12.24%.

Miscellaneous Charge: This is a charge levied for an alteration within the


contract, such as reduction in policy term, change in premium mode, etc. An
alteration may be allowed subject to a charge of Rs. 50/-.

(D) Right to revise charges: The Corporation reserves the right to revise all
or any of the above charges except the premium allocation charge and charges
for risk covers, with the prior approval of IRDA.

33
vii. Although the charges are reviewable, they will be subject to a cap for which
please refer to the policy document.

viii. Surrender: The surrender value, if any, is payable only after the completion
of the third policy anniversary both under Single and Regular premium
Contract.

No partial withdrawal of units will be allowed under this plan.

ix. Other Features:

i) Top-up (Additional Premium): The policyholder can pay additional


premium in multiples of Rs.1, 000 without any limit at anytime during the
term of the policy. In case of yearly, half-yearly or quarterly mode of premium
payment such Top-up can be paid only if all premiums have been paid under
the policy.

ii)Switching: You can switch between any fund types during the policy term
subject to switching charges, if any.

iii) Discontinuance of premiums and revival: If premiums are payable


yearly, half-yearly or quarterly and the same have not been duly paid within
the days of grace under the Policy, the Policy will lapse. A lapsed policy can
be revived during the period of two years from the due date of first unpaid
premium.

If you have opted for life cover, under Regular premium policies where at
least 3 years’ premiums have been paid, and the subsequent premiums are not
paid, the life cover and accident benefit cover, if any, will be compulsorily
available under the policy and the charges for the same if any, shall be taken,
in addition to other charges, by canceling an appropriate number of units out
of the Policyholder’s Unit Account every month subject to the following :

two years from the due date of first unpaid premium, or


two years from the due date of first unpaid premium, or
till such period that the Policyholder’s Unit Account reduces to one annualized
premium, whichever is earlier.

iv) Increase / decrease of benefits: No increase (except to the extent of Top-


up stated above) or decrease of benefits will be allowed under the plan.

iiv) Conversion to annuity at vesting date: The rate at which the amount at
vesting date will be converted to an annuity is not guaranteed and will be
based on the prevailing immediate annuity rates under the relevant annuity
option at the vesting date.

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

34
xi. Risks borne by the Policyholder:

i) Unit Linked Life Insurance products are different from the traditional
insurance products and are subject to the risk factors.

ii) The premium paid in Unit Linked Life Insurance policies are subject to
investment risks associated with capital markets and the NAVs of the units
may go up or down based on the performance of fund and factors influencing
the capital market and the insured is responsible for his/her decisions.

iii) Life Insurance Corporation of India is only the name of the Insurance
Company and LIC’s Market Plus is only the name of the unit linked life
insurance contract and does not in any way indicate the quality of the contract,
its future prospects or returns.

iv) Please know the associated risks and the applicable charges, from your
Insurance agent or the Intermediary or policy document of the insurer.

v) The various funds offered under this contract are the names of the funds and do
not in any way indicate the quality of these plans, their future prospects and
returns.

vi) All benefits under the policy are also subject to the Tax Laws and other
financial enactments as they exist from time to time.

xii. Cooling off period: If you are not satisfied with the Terms and Conditions’ of
the policy, you may return the policy to us within 15 days.

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

xiv. Assignment: Assignment will not be allowed under this plan.

xv. Exclusions: In case the Life Assured commits suicide at any time, the
Corporation will not entertain any claim by virtue of the policy except to the
extent of the Fund Value of the units held in the Policyholder’s Unit Account
on death.

35
Benefit Illustration

Statutory warning
some benefits are guaranteed and some benefits are variable with returns based
on the future performance of your life insurance company. If your policy offers
guaranteed returns then these will be clearly marked guaranteed in the
illustration table on this page. If your policy offers variable returns then the
illustrations on this page will show two different rates of assumed investment
returns. These assumed rates of return are not guaranteed and they are not
upper or lower limits of what you might get back as the value of your policy is
dependant on a number of factors including future investment performance.

BASIC PLAN WITH LIFE COVER

FREQUENCY OF PREMIUM ANNUAL


PREMIUM 10000
PAYMENT PREMIUM
SUM ASSURED UNDER
AGE AT ENTRY 35 years 200000
BASIC PLAN
TERM 20 years
Secured
TYPE OF FUND
Fund

DEATH BENEFIT PAYABLE AT END OF YEAR OF SURRENDER/MATURITY


DEATH VALUE
END OF TOTAL
POLICY PREMIUM GUARANTEED VARIABLE VARIABLE Total Total VARIABLE VARIABLE
YEAR PAID
Scenario Scenario Scenario Scenario
Scenario 1 Scenario 2
1 2 1 2
1 10000 200000 7624 7932 207624 207932 0 0
2 20000 200000 17560 18569 217560 218569 0 0

36
3 30000 200000 27955 30121 227955 230121 27955 30121
4 40000 200000 38827 42664 238827 242664 38827 42664
5 50000 200000 50196 56282 250196 256282 50196 56282
6 60000 200000 62072 71057 262072 271057 62072 71057
7 70000 200000 74480 87091 274480 287091 74480 87091
8 80000 200000 87452 104503 287452 304503 87452 104503
9 90000 200000 101013 123411 301013 323411 101013 123411
10 100000 200000 115178 143935 315178 343935 115178 143935
11 110000 200000 129963 166205 329963 366205 129963 166205
12 120000 200000 145385 190361 345385 390361 145385 190361
13 130000 200000 161460 216558 361460 416558 161460 216558
14 140000 200000 178208 244962 378208 444962 178208 244962
15 150000 200000 195646 275756 395646 475756 195646 275756
16 160000 200000 213796 309138 413796 509138 213796 309138
17 170000 200000 232677 345323 432677 545323 232677 345323
18 180000 200000 252313 384547 452313 584547 252313 384547
19 190000 200000 272725 427066 472725 627066 272725 427066
20 200000 200000 293938 473158 493938 673158 293938 473158

BASIC PLAN WITHOUT LIFE COVER

FREQUENCY OF PREMIUM ANNUAL


PREMIUM 100000
PAYMENT PREMIUM
SUM ASSURED UNDER
AGE AT ENTRY 35 years 0
BASIC PLAN
ACCIDENT BENEFIT SUM
TERM 20 years 0
ASSURED
Secured
TYPE OF FUND
Fund

DEATH BENEFIT PAYABLE AT END OF YEAR OF SURRENDER/MATURITY


DEATH VALUE
END OF TOTAL
POLICY PREMIUM GUARANTEED VARIABLE VARIABLE Total Total VARIABLE VARIABLE
YEAR PAID
Scenario Scenario Scenario Scenario
Scenario 1 Scenario 2
1 2 1 2
1 100000 0 100743 104557 100743 104557 0 0
2 100000 0 102015 110022 102015 110022 0 0
3 100000 0 106813 119569 106813 119569 106813 119569
4 100000 0 111848 129965 111848 129965 111848 129965

37
5 100000 0 117132 141287 117132 141287 117132 141287
6 100000 0 122678 153617 122678 153617 122678 153617
7 100000 0 128498 167045 128498 167045 128498 167045
8 100000 0 134605 181669 134605 181669 134605 181669
9 100000 0 141015 197595 141015 197595 141015 197595
10 100000 0 147742 214940 147742 214940 147742 214940
11 100000 0 154801 233829 154801 233829 154801 233829
12 100000 0 162209 254400 162209 254400 162209 254400
13 100000 0 169984 276803 169984 276803 169984 276803
14 100000 0 178143 301201 178143 301201 178143 301201
15 100000 0 186705 327771 186705 327771 186705 327771
16 100000 0 195691 356708 195691 356708 195691 356708
17 100000 0 205121 388222 205121 388222 205121 388222
18 100000 0 215018 422541 215018 422541 215018 422541
19 100000 0 225404 459917 225404 459917 225404 459917
20 100000 0 236303 500622 236303 500622 236303 500622

i. This illustration is applicable to a non-smoker male/female standard (from


medical, life style and occupation point of view) life.

ii. The non-guaranteed benefits (1) and (2) in above illustration are calculated so
that they are consistent with the Projected Investment Rate of Return
assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively. In
other words, in preparing this benefit illustration, it is assumed that the
Projected Investment Rate of Return that LICI will be able to earn throughout
the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The
Projected Investment Rate of Return is not guaranteed
iii. The main objective of the illustration is that the client is able to appreciate the
features of the product and the flow of benefits in different circumstances with
some level of quantification

SECTION 41 OF INSURANCE ACT 1938

i. No person shall allow or offer to allow, either directly or indirectly, as an


inducement to any person to take out or renew or continue an insurance in
respect of any kind of risk relating to lives or property in India, any rebate of
the whole or part of the commission payable or any rebate of the premium
shown on the policy, nor shall any person taking out or renewing or continuing
a policy accept any rebate, except such rebate as may be allowed in
accordance with the published prospectuses or tables of the insurer: provided
that acceptance by an insurance agent of commission in connection with a
policy of life insurance taken out by himself on his own life shall not be
deemed to be acceptance of a rebate of premium within the meaning of this

38
sub-section if at the time of such acceptance the insurance agent satisfies the
prescribed conditions establishing that he is a bona fide insurance agent
employed by the insurer.

ii. Any person making default in complying with the provisions of this section
shall be punishable with fine which may extend to five hundred rupees.

ANNEXURE (TO BE ATTACHED WHERE LIFE COVER HAS BEEN OPTED


FOR)

Charge for Life Cover per Rs. 1000/- Sum Assured under Basic plan per annum

Age n.b.d Charge Age n.b.d Charge

18 1.15
19 1.20 51 7.27
20 1.25 52 8.05
21 1.29 53 8.90
22 1.33 54 9.80
23 1.36 55 10.76
24 1.39 56 11.79
25 1.42 57 12.87
26 1.43 58 13.78
27 1.45 59 14.94
28 1.46 60 16.34
29 1.46 61 17.99
30 1.46 62 19.88
31 1.46 63 22.01
32 1.50 64 24.39
33 1.56 65 27.02
34 1.64 66 28.40
35 1.73 67 32.02
36 1.85 68 36.03

39
37 1.99 69 40.47
38 2.15 70 45.37
39 2.33 71 50.78
40 2.57 72 56.74
41 2.81 73 63.30
42 3.02 74 70.51
43 3.25
44 3.54
45 3.89
46 4.30
47 4.77
48 5.30
49 5.90
50 6.56

PROFIT PLUS

Features

It is a unit linked Endowment plan where the premium payment term (PPT) is limited
to single lump sum, or uniformly over 3, 4 or 5 years. You can choose the level of cover
within the limits, which will depend on whether the policy is a Single premium or
Limited premium contract, term chosen and on the level of premium you agree to pay.

Four types of investment Funds are offered. Premiums paid after allocation charge will
purchase units of the Fund type chosen. The Unit Fund is subject to various charges and
value of units may increase or decrease, depending on the Net Asset Value (NAV).

Payment of Premiums:
You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (ECS)
intervals over the premium paying term of 3, 4 or 5 years. The minimum premium will
be Rs.10000/-. Alternatively, a Single premium can be paid subject to a minimum of
Rs.20, 000/- .

Other Features:

i) Partial Withdrawals: You may encash the units partially after the third policy
anniversary subject to the following:

40
i) In case of minors, partial withdrawals shall be allowed from the policy anniversary
coinciding with or next following the date on which the life assured attains majority
(i.e. on or after 18th birthday).

ii) Partial withdrawals may be in the form of fixed amount or in the form of fixed
numbers of units.

iii) For 2 years’ period from the date of withdrawal, the Sum Assured under the Basic
plan shall be reduced to the extent of the amount of partial withdrawals made.

iv) Under Limited Premium Paying Term policies where less than 3 years’ premiums
have been paid and further premiums are not paid, the partial withdrawals shall not be
allowed.

v) Under Limited Premium Paying Term policies where atleast 3 years’ premiums have
been paid, partial withdrawal will be allowed subject to Policyholder’s Fund Value
being at least Rs. 10000/-.

vi) Under Single Premium policies, the partial withdrawal will be allowed subject to a
minimum balance of Rs. 5000/- in the Policyholder’s Fund Value.

ii) Switching: You can switch between any fund types for the entire Fund Value during
the policy term subject to switching charges, if any.

iii) Discontinuance of premiums: If premiums are payable either yearly, half-yearly,


quarterly or monthly (ECS) and the same have not been duly paid within the days of
grace under the Policy, the Policy will lapse. A lapsed policy can be revived during the
period of two years from the due date of first unpaid premium.

I Where at least 3 years’ premiums have been paid, the Life Cover, Accident Benefit
and Critical Illness Benefit riders, if any, shall continue during the revival period.

During this period, the charges for Mortality, Accident Benefit and / or Critical Illness
Benefit cover, if any, shall be taken, in addition to other charges, by canceling an
appropriate number of units out of the Policyholder’s Fund Value every month. This
will continue to provide relevant risk covers for:

i. two years from the due date of first unpaid premium, or


ii. Till the date of maturity, or
iii. Till such period that the Policyholder’s Fund Value reduces to Rs. 5,000/-,
whichever is earlier.

The benefits payable under the policy in different contingencies during this period shall
be as under:
A. In case of Death: Higher of Sum Assured under the Basic Plan or the Policyholder’s
Fund Value. The Sum Assured shall be subject to provisions of Partial Withdrawals
made, if any.

41
B. In case of Death due to accident: Accident Benefit Sum Assured in addition to the
amount under ‘A’ above, if Accident Benefit is opted for.

C. In case of Critical Illness claim: Critical Illness Rider Sum Assured, if opted for.

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

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


Value. The Surrender value, however, shall be paid only after the completion of 3
policy years.

F. In case of Partial Withdrawals: For 2 years period from the date of withdrawal, the
sum assured under the basic plan shall be reduced to the extent of the amount of partial
withdrawals made.

II Where the policy lapses without payment of at least 3 years’ premiums, the Life
Cover, Accident Benefit and/or Critical Illness Benefit rider covers, if any, shall cease
and no charges for these benefits shall be deducted. However, deduction of all the other
charges shall continue. The benefits under such a lapsed policy shall be payable as
under:

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

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

I. In case of Critical Illness claim: Nil.

J. In case of Surrender (including Compulsory Surrender): Policyholder’s Fund Value /


monetary value as the case may be, shall be payable after the completion of the third
policy anniversary. No amount shall be payable within 3 years from the date of
commencement of policy.

K. In case of Partial withdrawal: Partial Withdrawals shall not be allowed under such a
policy even after completion of 3 years period.

iv) Revival: If due premium is not paid within the days of grace, the policy lapses. A
lapsed policy can be revived during the period of two years from the due date of first
unpaid premium or before maturity, whichever is earlier. The period during which the
policy can be revived will be called “Period of revival” or “revival period”.

If premiums have not been paid for at least 3 full years, the policy may be revived
within two years from the due date of first unpaid premium. The revival shall be made
on submission of proof of continued insurability to the satisfaction of the Corporation
and the payment of all the arrears of premium without interest.

If at least 3 full years’ premiums have been paid and subsequent premiums are not paid,
the policy may be revived within two years from the due date of first unpaid premium

42
but before the date of maturity. No proof of continued insurability shall be required but
all arrears of premium without interest shall be required to be paid.

The Corporation reserves the right to accept the revival at its own terms or decline the
revival of a lapsed policy. The revival of a lapsed policy shall take effect only after the
same is approved by the Corporation and is specifically communicated in writing to the
Proposer / Life Assured.

Irrespective of what is stated above, if less than 3 years’ premiums have been paid and
the Policyholder’s Fund Value is not sufficient to recover the charges, the policy shall
be terminated and thereafter revival will not be entertained. If 3 years’ or more than 3
years’ premiums have been paid and the Policyholder’s Fund Value reduces to Rs.
5000/-, the policy shall terminate and Policyholder’s Fund Value as on such date shall
be refunded to the Life Assured and thereafter revival will not be allowed.

v) Settlement Option: When the policy comes for maturity, you may exercise
“Settlement Option” and may receive the policy money in instalments spread over a
period of not more than five years from the date of maturity. There shall not be any life
cover during this period. The value of installment payable on the date specified shall be
subject to investment risk i.e. the NAV may go up or down depending upon the
performance of the fund.

REINSTATEMENT:
A policy once surrendered can not be reinstated.

Risks borne by the Policyholder:


i) LIC’s Profit Plus is a Unit Linked Life Insurance products which is different from the
traditional insurance products and are subject to the risk factors.

ii) The premium paid in Unit Linked Life Insurance policies are subject to investment
risks associated with capital markets and the NAVs of the units may go up or down
based on the performance of fund and factors influencing the capital market and the
insured is responsible for his/her decisions.

iii) Life Insurance Corporation of India is only the name of the Insurance Company and
LIC’s Profit Plus is only the name of the unit linked life insurance contract and does not
in any way indicate the quality of the contract, its future prospects or returns.

iv) Please know the associated risks and the applicable charges, from your Insurance
agent or the Intermediary or policy document of the insurer.

v) The various funds offered under this contract are the names of the funds and do not
in any way indicate the quality of these plans, their future prospects and returns.

43
vi) All benefits under the policy are also subject to the Tax Laws and other financial
enactments as they exist from time to time.

Cooling off period:


If you are not satisfied with the “Terms and Conditions” of the policy, you may return
the policy to us within 15 days.

Assignment:
Assignment will be allowed under this plan.

Exclusions:
In case the Life Assured commits suicide at any time within one year, the Corporation
will not entertain any claim by virtue of the policy except to the extent of the Fund
Value of the units held in the Policyholder’s Fund Value on death.

SPECIAL PLANS

LIC’s Special Plans are not plans but opportunities that knock on your door once

in a lifetime. These plans are a perfect blend of insurance, investment and a

lifetime of happiness!

Bima Gold (closed for sale)


New Bima Gold

44
Bima Nivesh 2005
Jeevan Saral
Jeevan Madhur

45
OBJECTIVES OF LIC

Spread Life Insurance widely and in particular to the rural areas and to the socially

and economically backward classes with a view to reaching all insurable persons in

the country and providing them adequate financial cover against death at a reasonable

cost.

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

adequately attractive.

 Bear in mind, in the investment of funds, the primary obligation to its

policyholders, whose money it holds in trust, without losing sight of the interest

of the community as a whole; the funds to be deployed to the best advantage of

the investors as well as the community as a whole, keeping in view national

priorities and obligations of attractive return.

 Conduct business with utmost economy and with the full realization that the

moneys belong to the policyholders.

 Act as trustees of the insured public in their individual and collective capacities.

 Meet the various life insurance needs of the community that would arise in the

changing social and economic environment.

 Involve all people working in—the corporation to the' best of their capability in

furthering the interests of the insured public by providing efficient service with

courtesy.

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

participation, pride and job satisfaction through discharge of their duties with

dedication towards achievement of Corporate Objective.

46
GROWTH OF PRIVATE LIFE INSURANCE COMPANIES IN THE LAST 5
YEARS

The insurance industry recorded a booming growth of 35% in premium income during

2004-05 with the 13 private sector players walking away with. An impressive 129%

while the Life Insurance Corporation of India recorded a 21% growth.

Thus the market share of state behemoths dropped to 78% in 2004 05 from 87% a

year ago.

According to ASSOCHAM Eco Pulse (AEP) Study, the industry premium increased

to Rs253.42bn in 2004-05 from Rs187.1bn in 2003-04. The LIC total premium for the

year 2004-05 amounted to Rs197.85bn as against the Rs162.84bn during previous

year.

The figures for the first two months of the fiscal 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%, while the private players have grabbed over 24% share.

"With the huge potential the market has, the Government should, more seriously look

into increasing the FDI cap in the sector" said Mahendra K. Sanghi, ASSOCHAM

President.

During April-June 2005, the largest private company ICICI Prudential has increased

its share from 6.25% in 2004-05 to 7.68% in current fiscal.

The opening up of the sector has given some of the most innovative products like the

47
customized insurance policies and now the unit linked policies that have gained much

of customer attention. The sector has huge potential and certain other new and

innovative areas can also be looked into for enhancing market share and premium

income, said Sanghi.

HDFC is next in the row with 2.91% market share which has increased from 1.92%

last fiscal followed by TATA AIG which now shares 2% of the market from 1.18%

last fiscal.

Birla Sun life's share has dropped from 2.45% during FY'05 to 1.76% in first two

months of FY'06. SBI life comes next with 1. 72% share and has infact dropped a few

percent points from last year.

Max New York life and Aviva Life Insurance have captured more than 1% share each

from less than 1% share during FY'05. Others like ING, AMP Sanmar, Met Life and

Sahara India have less than 1 % share.

The detail of the market share of life insurance companies is attached. The market

share of the private players has doubled every year from 5.6% in 2002-03 to, 12% in

2003-04 and close to 22% in 2004-05.

The state run insurance company has the biggest advantage of its huge network which

the company can use to penetrate into rural market that is still lying untapped.

Another option with the life insurance companies to capture more and more market

share could be product innovation and constantly developing an insurance product in

order to meet the ever-changing requirements of the customer. Quality customer

service and education can be another area where a company can differentiate itself

48
from other companies.

IT to boost life market growth?

THE LIFE Insurance Corporation of India (LIC) has turned to information technology

in a bid to shed its image as a dinosaur among more nimble private sector companies.

LIC, India's dominant life insurer, is encouraging policyholders to use its web site to

pay premiums and make claims. Last- month, it announced new mobile phone SMS

(testing) services to alert policyholders of news about their plans.

These moves, unmatched by most of LIC's smaller private sector rivals, are part of an

effort to open new channels to increase the speed and quality of customer service -

long seen as LIC's weakness after decades as India's monopoly life insurer. LIC's

performance in the year to March 2004 suggests that these efforts are working. It sold

27 million new policies generating Rs85.7 billion (US$1.9 billion) in premium

income - an annual growth of about 11 percent. LIC's deployment of information

technology may have helped it maintain its 88 percent market share of premium sales.

Yet few believe that technology alone will drive the company's - and in effect, the

Indian life industry's expansion.

"Ultimately the growth of life insurance depends on growth of the economy," said TK.

Banerjee, a board member of the Insurance Regulatory Development Authority.

India's economic growth rate in March 2004 hit double-digit figures to become Asia's

fastest-growing economy. Most economists forecast growth to stabilize at around 7

percent to 2005. Banerjee said that this climate of rising economic prosperity is

49
encouraging consumers to think more about insurance.

Nonetheless, most life companies believe consumers still need Sanmar: "People still

don't think that insurance is important. Most sales happen after personal interaction."

AMP Sanmar, a two-year old joint venture between south.-Indian based conglomerate

Sanmar and Australia's AMP, has employed some 3,000 sales agents w4o are targeting

small and medium-sized towns that have low penetration rates of life insurance.

India's life insurance penetration is less than three percent. "We're focused on places

where there is no other company - not even LIC," Subramaniam said, -remarking that

unlike LIC, AMP Sanmar regards the internet and mobile phones as channels for

promotion, not sales. He said that the internet is not widespread as a channel to sell

consumer products in India, but Subramaniam has not ruled out deploying such

technology in the future. Whatever the merits of new distribution channels, the

industry fears a decline in sales following new taxes levied on single premium

products. Single premium life insurance has been popular in India mainly because

guaranteed returns were tax-free. This encouraged policyholders to pay large

premiums with minimal risk cover, for payments at maturity that often exceeded the

returns of more sophisticated financial products such as mutual funds. But last

October, the government decided to tax premiums that paid above 20 percent of the

sum assured. The decision has reduced sales of single premium products, which is

likely to restrain the overall growth of India's life industry. The industry regulator has

forecast growth of life premiums to be around 20 percent to March -2004, about the

same level as 1999, down from a burst of sales in 2002 of 43.5 percent. India's life

insurers have rallied to persuade the government to rescind the ruling later this year,

but any decision must wait for the end of parliamentary elections currently underway.

50
CURRENT STANDING OF PRIVATE LIFE INSURANCE COMPANIES IN
URBAN SECTOR

Life insurance is possibly the most- retail of all financial services, and is required by

people of all segments and in all locations. At a broad level, ICICI Prudential aims to

secure the families of the middle and upper class working people in urban India. To

this end, they have pursued a pan-India distribution strategy and backed it up with a

range of products that meets the needs of a wide range of people, be they from rural or

urban areas. Today, they have branches in 74 locations and rural presence in more

than 15 states. Certainly, the majority of the business still comes from urban areas

such as metros and mini-metros. However, they have seen rural business grow

significantly and expect it to continue making greater contribution in the years to

come.

51
ROLE OF FOREIGN COMPANIES IN INDIA

Government has allowed 26% foreign equity participation in the insurance sector.

This has its limitations. While most foreign insurers planning to start their services in

India were not pleased by this condition, they reluctantly agreed that this was

expected in an opening economy and this will not change their outlook for India.

After all no insurance company can afford to ignore a market of 1bn people. But the

fact remains that they:

 Can not appoint majority directors on the company board;

 Can not have say in the day to day workings of the company;

 Can Affect Only Special Resolutions.

This cap, however, will have a great impact on the Indian counter part to raise 74% of

the funds in their joint venture. To add to this if Indian partners like State bank of

India, with over 9000 branches nationwide, will demand premium for their existing

distribution network, we will see the foreign insurance companies demand hefty

premiums for bringing in their global expertise and brand. Mr. Vaidya, Chairman of

SBI, has recently stated that all it is looking for is a good and reliable partner and the

question of a hefty premium to be charged to its foreign partner is not significant. The

monolith has finally come to business senses foreign companies are unhappy even

about laws pertaining to repatriation of funds. The Stipulated investment criteria is

also something that all players in the sector, be it Indian or foreign, are closing

watching.

The foreign players are essentially looking to tap their" global expertise in the variety

markets and use that know-how to work in the Indian scenario. Designing of products,

information systems, technical expertise, manpower planning etc is what one expects

the foreign players to have a say in.

52
Any venture of the joint kinds needs to be between equals. If this is not there then

there is every chance that a partner in the venture will feel increasingly uncomfortable

and would be looking to call the joint venture off.

53
FINDINGS

QUESTIONNAIRE ANALYSIS

Respondents = 80

Respondents Responded = 60

Response Rate = 75%

Respondents are taken from private, government and business sectors.

1. According to you, which have played a major role in the field of life-
insurance companies?

Insurance Pvt. Employees Govt. Employees Business Man


LIC 10 13 10
HDFC 5 3 5
ICICI 3 3 4
Others 2 1 1

14

12
No. of Respondents

10

8 Pvt. Employees
Govt. Employees
6 Business Man

0
LIC HDFC ICICI Others

After analyzing this data it is found that from the given three respective level of Pvt.
Govt. and Business 10 out of 20 (30%), 13 out of 20 (39%) and 10 out of 20 (30%)
are in favour of LIC, while 5 out of 20 (15%), 3 out of 20 (9%) and 5 out of 20 (6%),
1 out of 20 (30%) and 1 out of 20 (30%) are in favour of other Pvt. Companies.

54
2. Which insurance companies have been successful to make strong public
base by advertisement?

Insurance Pvt. Employees Govt. Employees Business Man


LIC 12 14 12
HDFC 3 2 4
ICICI 4 3 3
Others 1 1 1

16

14

12
No. of Respondents

10
Pvt. Employees
8
Govt. Employees
6 Business Man
4

0
LIC HDFC ICICI Others

55
3. Which insurance company has gained massive public support in the
current fiscal year?

Insurance Pvt. Employees Govt. Employees Business Man


LIC 12 14 10
HDFC 3 2 5
ICICI 3 2 4
Others 2 2 1

16

14

12

10
Pvt. Employees
No. of Respondents

8 Govt. Employees
Business Man
6

0
LIC HDFC ICICI Others

From the above table, it is found that from the given three sector Private, Govt. and
Business 12 out of 20 (36%), 14 out of 20 (42%), 10 out of 20 (30%), are in the
favour of LIC 3 out of 20 (9%), 2 out of 20 (6%) and 4 out of 20 (12%) are in favour
of ICICI, whereas only 2 out of 20 (6%), 2 out of 20 (6%) 1 and out of 20 (3%) favour
others company.

56
4. Do you think insurance policy is in the direction of public welfare?

Pvt. Sector Govt. Sector Business Man


Yes 13 16 12
No 7 4 8

18

16

14

12

10
No. of Respondents

Yes
8 No

0
Pvt. Sector Govt. Sector Business Man

The above table shows that from private sector 13 out of 20 (30%) agree and 7 out of
20 (21%) disagree, from govt. sector 16 out of 20 (48%) think it right but 4 out of 20
(12%) don’t thick it so and from business man 12 out of 20 (36%) are in favour of the
above statement but 8 out of 20 (24%) don’t favour it.

5. Is retirement bond or pension policy launched by the number of private


player as well as public sector Company in the direction of secured old

57
age?

Pvt. Sector Govt. Sector Business Man


Yes 15 18 13
No 5 2 7

20
18
16
14
12
No. of respondents

Yes
10
No
8
6
4
2
0
Pvt. Sector Govt. Sector Business Man

It is obvious from the above table that 15 out of 20 (45%), 18 out of 20 (54%) and 13
out of 20 (39%) from the given three think retirement bend or pension policy a
legitimate step in the direction of secure old age but 5 out 20 (15%), 2 out of 20 (6%)
and 7 out 20 (21%) don’t agree with the opinion of the majority class.

58
6. Do you think that risk coverage factor included in Insurance policy
attracts general public towards the policy?

Pvt. Sector Govt. Sector Business Man


Yes 12 16 11
No 8 4 9

18

16

14

12
No. of respondents

10 Yes
8 No

0
Pvt. Sector Govt. Sector Business Man

From the above table it is found that 12 out of 20 (36%) from Private sector 16 out of
20 (48%). From Govt. sector and 11 out of 20 (33%) thinks risk coverage factor
attractive but rest 8 out of 20 (24%), 4 out of 20 (12%) and 9 out 20 (27%) from the
above them sector don’t think it so encouraging towards saving trend whereas 3 out of
20 (9%), 2 out of 20 (6%) and 4 out of 20 (12%) don’t think it so.

59
7. What according to you, the term plan that only covers risk and doesn’t
cover maturity benefit on survival at the end of the term provides security
cover over policy holders or a smart way of accumulative money from
policy holders?

Pvt. Sector Govt. Sector Business Man


Security Cover 11 15 12
Accumulative Money 9 5 8

16

14

12

10
No. of Respondents

8 Security Cover
Accumulative Money
6

0
Pvt. Sector Govt. Sector Business Man

It is obvious from the above data that 11 out of 20 (33%), from the Pvt. Sector, 15 out
of 20 (45%) from Govt. sector and 12 out of 20 (36%) think term plan as a security
cover but 9 out of 20 (27%), 5 out of 20 (15%) and 8 out of 20 (24%) from the three
respective group think it as a way of accumulating money insurance company.

8. Do you think that the arrival of so many private companies in this


insurance sector envisage a lot of choice to policy holder?

60
Pvt. Sector Govt. Sector Business Man
Yes 16 18 16
No 4 2 4

20

18

16

14

12
No. of Respondents

Yes
10
No
8

0
Pvt. Sector Govt. Sector Business Man

From analyzing the above data it is found that 16 out of 20 (48%) from Pvt. Sector, 18
out of 20 (54%) from Govt. sector and 16 out of 20 (48%) think that the arrival of
private players envisage a lot of choice to policy holder. But 4 out of 20 (12%), 2 out
of 20 (6%) and 4 out of 20 (12%) don’t think it so.

61
9. Do you agree that customer-centricity and transparency are the
buzzwords for success in this evolving industry?

Pvt. Sector Govt. Sector Business Man


Yes 18 20 19
No 2 - 1

25

20

15
No. of Respondents

Yes
No
10

0
Pvt. Sector Govt. Sector Business Man

From this above data, it is found the 18 out of 20 (54%) from Pvt. Sector and 20 out
of 20 (60%) from Govt. Sector 19 out of 20 (57%) from Business men agree with this
statement whereas only 2 out of 20 (6%) from Pvt. Sector and 1 out of 20 (3%) from
Business men do not agree with this statement.

62
IMPORTANCE OF JOINT VENTURES

HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

HDFC

Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged

as the largest residential mortgage finance institution in the country. The corporation

has had a series of share issues raising its capital to Rs. 119 crores. The net worth of

the corporation as on March 31, 2000 stood at Rs. 2,096 crores.

HDFC operates through 75 locations throughout the country with its Corporate

Headquarters in Mumbai, India. HDFC also has an international office in Dubai,

V.A.E., with service associates in Kuwait, Oman and Qatar.

Standard Life

Standard Life is Europe's largest mutual life assurance company. Standard Life, which

has been in the life insurance business for the past 175 years, is a modern company

surviving quite a few changes since selling its first policy in 1825. The company

expanded in the 19th century from its original Edinburgh premises, opening offices in

other towns and acquiring other similar businesses.

Standard Life currently has assets exceeding over £70 billion under its management

and has the distinction of being accorded "AAA" rating consequently for the past six

years by Standard & Poor.

63
The Joint Venture

HDFC Standard Life Insurance Company Limited was one of the first companies to

be granted license by the IRDA to operate in life insurance sector. Each of the JV

player is highly rated and been conferred with many awards. HDFC is rated 'AAA' by

both CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and

Standard and Poors. These reflect the efficiency with which DFC and Standard Life

manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.

HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000.

HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and Standard

Life has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.

HDFC Standard Life Insurance Products

 Money Back

 Endowment

 Term Assurance Plan

 Flexible Bond

 Development Insurance Plan

64
ICICI PRUDENTIAL LIFE INSURANCE COMPANY

ICICI

ICICI Ltd. was established in 1955 by the World Bank, the Government of India and

the Indian Industry, to promote industrial development of India by providing project

and corporate finance to Indian industry.

Since inception, ICICI has grown from a development bank to a financial

conglomerate and has become one of the largest public financial institutions in India.

ICICI has thus far financed all the major sectors of the economy, covering 6,848

companies and 16,851 projects. As of March 31, 2000, ICICI had disbursed a total of

Rs. 1,13,070 crores, since inception.

Prudential plc.

Prudential policy was founded in 1848. Since then it has grown to become one of the

largest providers of a wide range of savings products for the individual including life

insurance, pensions, annuities, unit trusts and personal banking. It has a presence in

over 15 countries, and caters to the financial needs of over 10 million customers. It

manages assets of over US$ 259 billion (Rupees 11, 39,600 crores approx.) as of

December 31, 1999.

Prudential is the largest life insurance company in the United Kingdom (Source:

S&P's UK Life Financial Digest, 1998). Asia has always been an important region for

Prudential and it has had a presence in Asia for over 75 years. In fact Credential’s first

overseas operation was in India, way back in 1923 to establish Life and General

Branch agencies.

65
The Joint Venture

ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000.

The authorized capital of the company is Rs.2300 Million and the paid up capital is

Rs. 1500 Million. The Company is a joint venture of ICICI (74%) and Prudential plc

UK (26%). The Company was granted Certificate of Registration for carrying out Life

Insurance business, by the Insurance Regulatory and

Development Authority on November 24, 2000. It commenced commercial operations

on December 19, 2000, becoming one of the first few private sector players to enter

the liberalized are

ICICI Pru Life Insurance Products

 ICICI Pru Forever Life

 ICICI Pru Single Premium Bond

 ICICI Save 'n' Protect

 ICICI Pru CashBack

 ICICI Pru Life Guard

 ICICI Pru Assure Investment

 ICICI Pru Life Link

 ICICI Pru Reassure

66
BIRLA SUN LIFE INSURANCE COMPANY LIMITED

The Aditya Birla Group

Aditya Birla Group is India's second largest, business house, with a turnover of over

$4.75bn and an asset base of$3.8 bn. The Group is a well diversified conglomerate

with 72,000 strong workforce spanning 40 Companies spread across 17 countries.

The flagship companies of the Group - Grasim, Hindalco, Indian Rayon and Indo

Gulf - hold leadership positions in their respective areas of business.

Sun Life Assurance

Sun Life Assurance Co. of Canada, established in 1871, is licensed in Canada, the

U.S., the Philippines, Hong Kong, and the U.K. Its major lines of business are life

insurance, annuities and mutual funds and investment services. Sun Life's rating

reflects extremely strong diversification of revenues and profitability, outstanding

capitalization, good fundamental earnings, and high-quality investments. In Canada,

the company is especially strong. in the corporate life and health insurance and

savings markets. In the U.S., the company is a top 20 player in the variable annuity

market and a significant force in the upscale individual insurance market. In the U.K.,

Sun Life is among top 20 life and health insurers.

67
The Joint Venture

Birla Sun Life Insurance Company, the 74: 26 joint ventures between Aditya Birla

Group and Sun Life financial Services --of Canada, has an equity capital of Rs. 150

crore. Birla Sun Life has Mr. Nalli B Javeri as its CEO.

A six member Board, with equal representation from each of the JV Companies has

been constituted to run the Company. Mr. Donald A. Stewart, Chairman and CEO,

Sun Life Financial Services will head the Board. Mr. Kumar Mangalam Birla will be a

director on the board. Other directors include Mr. Douglas Henck, Executive Vice

President of Sun Life's Asian operations, Mr. Vijay Singh, Vice President India, Sun

Life Financial Services, Mr. B. N. Puranmalka, Group Vice-Chairman, and Mr. S. K.

Mitra, Group Director, Financial Services of the Aditya Birla Group.

The area of focus will be the rural segment as the company plans to leverage the

network of the Aditya Birla Centre for Community Initiative and Rural Development

in rural areas. Its multi-channel distribution set up comprises insurance advisors for

life and an expert marketing team for group products.

Birla Sun Life Insurance Products

 Money Back

 Endowment

 Whole Life

 Birla Sun Life Term Plant

68
CONCLUSION

After overhauling the all situation that boosted a number of Pvt. Companies

associated with multinational in the Insurance Sector to give befitting competition to

the established behemoth LIC in public sector, we come at the conclusion that :

1) There is very tough competition among the private insurance companies

on the level of new trend of advertising to lull a major part of Customers.

2) LIC is not left behind in the present race of advertisement.

3) The entry of the Pvt. Players in the Insurance Sector has expanded the

product segment to meet the different level of the requirement of the

customers. It has brought about greater choice to the customers.

4) Private insurers have restricted reach to the customers.

5) LIC has vast market and very firm grip on its traditional customers and

monopoly of life insurance products.

6) Bank assurance - that allows life insurers to leverage on the risk product

through bank network, was adopted by private players. But LIC was also

not left behind as picking up majority stake in the corporation Bank and

large equity stake in the Oriental Bank of Commerce.

IRDA is also playing very comprehensive role by regulating norms mandating to

private players in this sector, that increases the confidence level of the customers to

the private players.

69
CONCLUSIONS GOT BY THE CONSUMER SURVEY ANALYSIS

1) Now days also Insurance is most popular as more plain protection against

death and people are unaware about the other aspects of insurance.

2) According to current scenario life and mater Insurance are the mast

popular ones followed by fire Insurance.

3) Majority of people consider the Insurance premium paid by them as

reasonable.

4) Only few counted people are unaware about the entry of private players

into. The insurance industry and a very high majority of people support

their entry.

5) By the entry of private players. Consumers are expecting the premium to

down which would be the biggest blessing.

70
RECOMMENDATIONS

In the modernized well advanced hi-tech approach to the customer every possible

facilities and effort to build up the confidence of the rising policy holders towards.

Insurance companies, to complete one another nothing is left to recommend. But

some recommendations that are intensely felt and highly required for insures to

sustain in the market. These are as follows:

a) More and more transparency should be ascertained between insurers and

policy holders.

b) Particularly, in the emerging boom in the insurance company, every insurance

company should be customer centered, and well versed in the handling of

problem and grievances of the policy holders.

c) Each and Every product launched by the Insurance company should be in

favour of increasing need of policy holders.

IRDA should be more and more responsible to the insurance sector by determining

some standard. It should be mandatory to every insurers to make more and more

responsible and responsive to the policy holders so that comprehensive understanding

may be developed among policy holders. It may be beneficial on both sides.

71
BIBLIOGRAPHY

BROCHURES / INFORMATION BOOKLETS

 Product List L.I.C.

 L.I.C. Annual Report, 2006

 ICICI Annual Report, 2006

 HDFC Annual Report, 2006

 Malhotra Committee Report on Reforms in the Insurance Sector, 1993.

 The Insurance Regulatory and Development Authority Bill, 1999.

NEWSPAPERS / MAGAZINES

 The Economic Times

 The Insurance Times

 Insurance Post

 BOOKS

 Dr. Gupta S.P& Dr. Gupta M.P., Business Statistics by Addition 2004, New Delhi,

WEBSITES

 w.w.w.liclndia.com

 www.lrdaindia.org.com

 www.indiainfoline.com

 www.icici.com

 www.hdfc.com

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