Core System RFP

Request for Proposal
for
“Centralized IT Application for Pension and Group Systems

of LIC of India”
[Ref: LIC/CO/P&GS/RFP/2017-18 Dated: 12.03.2018]
Life Insurance Corporation of India,

Central Office, P&GS Department,
5thFloor, East Wing, "Yogakshema",
Nariman Point, Mumbai – 400021
Email: co_pgsrfp@licindia.com
This document is the property of Life Insurance Corporation of India (LIC).
It should not be copied, distributed or recorded on any medium, electronic or otherwise, without LIC‘s
written permission. Use of contents given in this document, even by the authorized
personnel/agencies for any purpose other than the purpose specified herein, is strictly prohibited as it
shall amount to copyright violation and thus shall be punishable under the Indian law.
Table of contents
1. RFP-Terminology
1.1. Definitions ……………………………………………………………………………………………. 8
1.2. Abbreviations …………………………………………………………………………………………. 9
2. Request for Proposal
2.1. Invitation to Bid ……………………………………………………………………………………….. 10
2.2. Activity Schedule ……………………………………………………………………………………… 11
2.3. Project Background ………………………………………………………………………………… 12
2.4. Objective for RFP …………………………………………………………………………………… . 12
3. Instructions to Bidders
3.1. Qualification Criteria …………………………………………………………………………………13
3.2. General Instructions ………………………………………………………………………..………..13
3.3. Pre-bid Meeting & Clarifications ……………………………………………… ………….…14
3.4. Partners ……………………………………………………………………………………………………15
3.5. Issue of Corrigendum ………………………………………………………………… ……….….16
3.6. Terms and Conditions ………………………………………………………………………………16
3.7. Information provided in the RFP ………………………………………………………………17
3.8. Right to accept or to reject any proposal ………………………………………….…….17
3.9. Bid Document Price ……………………………………………………………………. ………....19
3.10. Earnest Money Deposit ………………………………………………………………….… ……19
3.11. Bid Submission……………………………………………………………………………… …..…...21
3.12. Documents Required for submission………………………………………………..……..25
3.13. Evaluation Process…………………………………………………………………………..… …..26
3.14. Procedure for Opening Bids ……………………………………………………………..…….26
3.15. Bid Validity Period ………………………………………………………………………………..…27
4. Criteria for Evaluation
4.1. Stage 1 - Eligibility criteria Evaluation ……………………………………………………28
4.2. Stage 2 - Technical Bid Evaluation …………………………………..…………………….29
4.3. Stage 3 - Commercial Evaluation ……………………… …………………………………31
4.4. Online Reverse Auction ………………………………………………………………………..32
4.5. Technical Negotiation ………………………………………………………………………… 33
4.6. Availability of Professional Staff/experts ……………………………………………. 33
4.7. Award Criteria ………………………………………………………………………………………34
4.8. Request to Extend Validity period and EMD by LIC ………………………………34
4.9. Right to accept any bid and to Reject any or All Bid(s) …………………………34
4.10. Notification of Award …………………………………………………………………….34
4.11. Performance Guarantee and Contracting ……………………………………..34
5. Eligibility Criteria ……………………………………………………………………………………….35
6. Terms and Conditions
6.1. Contract Period ……………………………………………………………………………………….37
6.2. Option to extend Contract Period …………………………………………………………..37
6.3. Service Location ………………………………………………………………………………………37
6.4. General Obligation of the parties …………………………………………………………….37
6.4.1 Warranties …………………………………………………………… .……………………..38
6.4.2 Access to LIC‘s premises …………………………………………… ………………. 38
Strictly Confidential Life Insurance Corporation of India Page 2 of 131

6.4.3 Conduct at LIC‘s premises ……………………………………………………………….38
6.4.4 Subcontracting ………………………………………………………………………………..38
6.4.5 Assignments ……………………………………………………………………………………38
6.5 Documentation
6.5.1 Provision of Documentation ………………………………………………….……………..38
6.5.2 Documentation requirements ………………………………………………………………38
6.6 Varying the Services
6.6.1 Variations Proposed by LIC …………………………………………………………………..39
6.6.2 Effective Date of Variation …………………………………………………………………….39
6.6.3 Change Order ………………………………………………………………………………………..39
6.6.4 Change Requests …………………………………………………………………………………..39
6.6.5 Contract Amendments …………………………………………………………………………..39
6.7 Co-operation with Personnel and entities interacting with LIC ……...............40
6.8 Monitoring progress
6.8.1 Progress meetings …………………………………………………………..………………… …40
6.8.2 Reporting ………………………………………………………………………………..…………… .40
6.9 Performance assessment
6.9.1 Assessment of Services ………………………………………………………..………………….40
6.9.2 Notice of non-compliant Services …………………………………………………………..40
6.9.3 Rectification of non-compliant Services…………………………………………………..40
6.10 Personnel
6.10.1 Use of Specified Personnel………………………………………………………………………40
6.10.2 If the Specified Personnel are not available …………………………………………...41
6.10.3 LIC may request replacement of Personnel ……………………………… ………. . 41
6.11 Intellectual Property Rights
6.11.1 Third Party Material …………………………………………………………………………………41
6.11.2 LIC ownership of Intellectual Property Right in Contract ………………………..41
6.11.3 Rights in Vendor‘s Pre-existing IPR ………………………………………………………….41
6.11.4 IPR Warranty …………………………………………………………………………………………… 41
6.11.5 Remedy for breach of Warranty ……………………………………………………………….41
6.11.6 Patent Rights and other litigation costs ……………………………………………………42
6.12 Moral Rights
6.12.1 Obtaining Consents ………………………………………………………………………………….42
6.12.2 Specified Acts …………………………………………………………………………………………..42
6.13 Payment terms
6.13.1 Payment Schedule ……………………………………………………………………………………42
6.13.2 Payment Terms & Conditions …………………………………….……………………………43
6.13.3 Obligation to pay ……………………………………………………….……………………………44
6.13.4 Liquidated Damages ……………………………………………………………………………….44
6.13.5 Incorrect invoices, under/over payment …………………………………………………45
6.13.6 Due date for payment ……………………………………………………………………………..45
6.13.7 Expenses ………………………………………………………………………………………………….45
6.14 Prices and Taxes
6.14.1 Prices ………………………………………………………………………………………………………..45
6.14.2 Taxes and Duties ……………………………………………………………………………………….45

6.14.3 Deduction of Taxes at Source …………………………………………………………………….45
6.15 Indemnity …………………………………………………………………………………………………………46
6.16 Liability ……………………………………………………………………………………………………………….47
6.17 Insurance
6.17.1 Obligation to maintain insurance ………………………………………………………………..47
6.18 Confidentiality and privacy ………………………………………………………………………………. 47
6.18.1 Confidential Information not to be disclosed…………………………………………….47
6.18.2 Exceptions to obligations……………………………………………………………………………48
6.18.3 Obligations on disclosure…………………………………………………………………………..48
6.18.4 Additional confidential information……………………………………………………………48
6.18.5 Period of confidentiality……………………………………………………………………………..48
6.19 Protection of personal information
6.19.1 Application of the clause ……………………………………………………………………49
6.19.2 Obligations …………………………………………………………………………………..………….49
6.20 Conflict of interest
6.20.1 Warranty that there is no conflict of interest …………………………………………49
6.20.2 Notification of a conflict of interest ……………………………………………………..49
6.21 Security
6.21.1 Compliance with LIC requirements ……………………………………………………..49
6.21.2 Security clearance ……………………………………………………………………………….50
6.21.3 Removal of LIC Data ………………………………………………………………………………..50
6.22 Books and records
6.22.1 Vendor to keep books and records ………………………………………………………50
6.22.2 Costs ………………………………………………………………………………………………………….50
6.23 Force Majeure or Unforeseen events
6.23.1 Occurrence of unforeseen event ………………………………………………………50
6.23.2 Notice of unforeseen event …………………………………………………………………..50
6.23.3 Termination …………………………………………………………………………………………….50
6.23.4 Consequences of termination …………………………………………………………………..50
6.24 Dispute Resolution
6.24.1 Reconciliation Process ……………………………………………………………………………….51
6.24.2 Notification …………………………………………………………………………………………….51
6.24.3 Parties to resolve Dispute …………………………………………………………………..51
6.24.4 Confidentiality …………………………………………………………………………………………….51
6.24.5 Costs ………………………………………………………………………………………………………….51
6.24.6 Termination of process………………………………………………………………………………..51
6.24.7 Breach of this clause ………………………………………………………………………………..51
6.25 Termination
6.25.1 Right to terminate ………………………………………………………………………………………52
6.25.2 Termination and reduction for convenience …………………………………………52
6.25.3 Termination by LIC for default ………………………………………………………………….52
6.25.4 Termination for Insolvency ………………………………………………………………….52
6.25.5 After termination ………………………………………………………………………………53
6.25.6 Survival ……………………………………………………………………………………………53
6.25.7 Severability ……………………………………………………………………………………………53

6.25.8 Termination does not affect accrued rights ………………………………………..53
6.25.9 Knowledge transfer ………………………………………………………………………………53
6.26 Notices and other communications
6.26.1 Service of notices ………………………………………………………………………………53
6.26.2 Effective on receipt ………………………………….…………………………………………..54
6.27 Miscellaneous
6.27.1 Varying the Contract ………………………………………………………………………………54
6.27.2 Approvals and consents …………………………………………………………………54
6.27.3 Assignment and novation ………………………………………………………………..54
6.27.4 Further action …………………………………………………………………………………………..54
6.27.5 Waiver ………………………………………………………………………………………………….……54
6.27.6 Relationship ………………………………………………………………………………………….54
6.27.7 Announcements ……………………………………………………………………………………….54
6.27.8 Governing law and jurisdiction …………………………………………………………….…55
6.28 Performance Guarantee ………………………………………………………………………………..55
6.29 Inspection and Tests
6.29.1 System Acceptance & Solution Acceptance ……………………………………………55
6.29.2 Acceptance Testing and sign off ………………………………………………….56
6.29.3 Warranty …………………………………………...……………………………………………………..56
6.29.4 IPv6 Compliance ……………………………………………..……………………………..56
6.30 Business continuity ……………………………………………………………….……………………….56
6.31 Support to be provided by LIC ……………………………………………………………………….57
7. Executive Summary of Scope of Work
7.1. Details of the Current Technology ………………………………………………………………… 57
7.2. High Level Scope of Work ………………………………………………………..……………… 59
8. Detailed Scope of Work
8.1. Project Planning ………………………………………………………………………………………..63
8.2. Requirement Analysis and Management.……………………………………………………….65
8.3. Application Design and Architecture
8.3.1 Use of Framework ………………………………………………………………………….69
8.4. System Interface and Integration ……………………………………………………………..69
8.5. Detailed Design ………………………………………………………………………………………..71
8.6. Application Configuration and Development Management …………………………..72
8.6.1 Change and Release Management ………………………………………………..…………72
8.7. Implementation Management ………………………………………………………………………..73
8.7.1 Readiness Assessment ……………………………………………………………….……… .74
8.7.2 Set up of required Environments ………………………………………………………………74
8.8. Continuous Monitoring and Application Lifecycle Management …………………….75

8.9. Data Migration …………………………………………………………………………………………76
8.10. Hardware, Software, Network and Bandwidth ………………………….………………………78
8.10.1. Sizing ………………………………………………………………………………………………………….78
8.10.2. Supply and Deployment – Hardware ………………………………………………………….79
8.10.3. Supply and Deployment – Software …………………… …………………………………….80
8.10.4. System Maintenance ………………………………………… ………………………………………81

8.10.5. Data Centre Hosting ………………………………………… ………………………………………..81
8.10.6. Catering to the Reporting requirements ………… ………………………………………….81
8.11. Security ……………………………………………………………………………………………………….81
8.11.1. User Access Security ……………………………………………………………………………….82
8.12. Testing ………………………………………………………………………………………………………..83
8.12.1. Master test plan ……………………………………………… ………………………………………….83
8.12.2. Unit and Integration Testing ………………………………………………………………………..83
8.12.3. System Integration Testing ……………………………………………………………………………83
8.12.4. User Acceptance Testing ……………………………………………………………………………….84
8.12.5. System Regression Testing …………………………………………………………………………….84
8.13. Pilot ……………………………………………………………………………………………..……………………….85
8.14. Roll Out ………………………………………………………………………………………………………………...86
8.14.1. Roll Out Plan ………………………………………………………………………………………………….86
8.15. Quality Assurance ………………………………………………………………………………………………….88
8.16. System Maintenance and Support ………………………………………………………………………..88
8.16.1. Application Support ……………………………………………………………………………………….89
8.17. Continuity of Operations ……………………………………………………………….…………………….93
8.18. Data Backup and Archival ……………………………………………………………..………………….93
8.19. Performance Benchmarking ………………………………………………………………………………….94
8.20. Training …………………………………………………………………………………………………………………95
8.21. Knowledge Transfer……………………………………………………………………………………………….96
8.22. Reverse Transition ………………………………………………………………………………………………..97
8.23. Project Documentation ……………………………………………………………….……………………….98
8.24. Acceptance Criteria and Sign-off Framework ………………………………………………………101
8.25. Independent Performance Audit …………………………………………………………………………101
8.26. Ownership and Delivery ………………………………………………………………….…………………..104
8.26.1. Ownership …………………………………………………………………………………………………….104
8.26.2. Delivery …………………………………………………………………………………………………………105
8.26.3. Rights ……………………………………………………..…………………………………………………….105
8.27. Project Governance …………………………………..………………………………………………….106
9. Project Timelines
9.1. Project Implementation ………………………………………………………………………………110
9.1.1. Products ……………………………………………………………………………………………………..110
9.1.2. Applications/Modules………………………………………………………………………………….111
9.1.3. Unit Implementation ……………………………………………………………………………….111
10. Service Level Agreement (SLA) ……………………………… ………… … ……………………….112
10.1. P&GS Application Support Services ………………………… ………………………..112
10.2. System Availability ……………………………………………………………………………………………..116
10.3. Application Implementation ………………………………………………………………………………..120
10.4. Availability Service Level Default …………………………………………… ……………………………121
10.4.1. Availability Service Credit Computation ……………………………………………121
10.4.2. Service Level Agreement (SLA) …………………………………………………………122

Annexures
Annexure I Letter of Authorization

Annexure II Pre-Contract Integrity Pact
Annexure III Letter of Intent
Annexure IV Non-disclosure Agreement
Annexure V Bank Guarantee
Annexure VI Eligibility Criteria Compliance
Annexure VII Functional Requirements
Annexure VIII Technical Requirements
Annexure IX List of Interfaces
Annexure X Business Volumes
Annexure XI(A) Commercial Bid Details (unmasked)
Annexure XI(B) Commercial Bid Details (masked)
Annexure XII Queries on RFP
Annexure XIII Technical Cover Letter
Annexure XIV Technical Evaluation Criteria
Annexure XV Personnel Deployment
Annexure XVI Hardware Sizing
Annexure XVII Technical Response
Annexure XVIII Technical Bid Scoring Break Up
Annexure XIX Bandwidth Details
Annexure XX Software License Tools available
Annexure XXI SelfDeclaration by Bidder for SDC in India
Annexure XXII Self Declaration for non-blacklisting
Annexure XXIII Undertaking by Bidder
Annexure XXIV Schedule of Assumptions

1. RFP Terminology
1.1 Definitions
Throughout this RFP, the terminologies mentioned below would carry following meaning:
Means without limitation the ―Life Insurance Corporation of India‖ (LIC), a statutory
LIC Corporation established under section 3 of Life Insurance Corporation Act, 1956, (Act XXXI
of 1956) having its Corporate Office at ―Yogakshema‖, Jeevan Bima Marg, Mumbai 400 021
An eligible firm i.e. firm fulfilling eligibility criteria and submitting a proposal in response to
Bidder
this RFP, in its individual right.
This Request for Proposal Ref: LIC/CO/P&GS/RFP/2017-18 Dt:12.03.2018,inclusive of any
RFP
clarifications/corrigenda/addenda that may be issued by LIC.
Bid The Bidder‘s written submissions in response to the RFP signed by his Authorized Signatory.
An Agreement signed between LIC and the Selected vendor and all the attached documents.
Contract The ―Agreement‖ includes the RFP, subsequent modifications to the RFP issued by LIC,
response of the selected vendor to the RFP and the agreement document itself.
Vendor Selected Bidder as an outcome of the RFP with whom LIC signs the Contract.
Authorized
The person authorized through a valid Power of Attorney by the company‘s Board/
Signatory of the
Managing Director/ Director for signing the bid documents on behalf of the company
bidder
Means all services as per this RFP in general
Deliverables &
Section 5. Executive Summary of scope of work
Services
Section 6. Detailed Scope of Work of this RFP
Shall be construed as a day excluding Sundays and public holidays declared under the
Business Day Negotiable Instruments Act, 1881 by concerned State Governments or Central Government
of India
Day Calendar Day
Clarifications Means Addenda, corrigenda and clarifications to the RFP
OpEx Model Systems are owned by the Vendor, LIC pays for the services per transaction basis
CapEx Model Systems are owned by LIC, LIC pays for the procurement as per the terms of RFP
Contract Value The grand total of the L1 prices after conclusion of online reverse auction.
1. If Online Reverse Auction is held as per the conditions of the RFP - Lowest price
discovered through Online Reverse Auction
L1 quote
2. If Online Reverse Auction is not held as per the conditions of the RFP - Lowest price
discovered through Commercial Bid
L1 Bidder Bidder with L1 quote
Successful Bidder L1 bidder after reverse auction. If no reverse auction, L1 bidder as per the commercial bid.
COTS Commercial off the shelf (Product/ Software)
Means all the functional, technical, operational, performance or other characteristics

Specifications required of a Product or Service as mentioned in the RFP document or any of the annexure
or clarifications to the RFP document.
“Party” and Each of the parties i.e. LIC and Selected bidder are collectively referred to as the ‗Parties‘ and
“Parties” individually as a ‗Party‘.
Shall mean the written notice of Default of the Agreement issued by one Party to the other
Default Notice
in terms hereof

Shall mean any Act, notification, bye law, rules and regulations, directive, ordinance, order or
Law instruction having the force of law enacted or issued by the Central Government and/ or the
Government of any state or any other Government or regulatory authority.
Means professionals and support staff provided by the Bidder and assigned to perform the
Personnel
Services or any part thereof.
Shall mean statements which identify a necessary capability, characteristic, attribute or
quality of a system and include schedules, details, description, and statement of technical
Requirements
data, performance characteristics, standards (Indian as well as International) as applicable
and specified in the RFP.
Means the section which explains the objectives, scope of work, activities, tasks to be
Terms of
performed, respective responsibilities of the Bidder and expected results and deliverables of
Reference
the assignment.
System Integration Testing- Testing of software components to ensure all software module
SIT dependencies are functionally supported and that data integrity between separate modules
or applications is maintained.
The final phase in software development process in which the software will be tested for
UAT (User
functionality by panel of users to ensure it can handle required tasks in real-world scenarios
Acceptance Test)
according to the specifications.
Wherever Timelines have been defined as days, weeks, months; they will mean calendar
Timelines
days, calendar weeks and calendar months.
―Date of Acceptance‖ the system shall be deemed to have been accepted by LIC,
subsequent to its commissioning , when all the activities as defined in the scope of work
Date of
related to the acceptance of system have been successfully executed and completed and a
Acceptance
certificate from LIC is obtained by the Vendor. The date of acceptance of system will be the
one stated in the Certificate issued in writing from LIC and duly signed by an authorized
official of LIC.
Personnel deployed by the Vendor on the project to meet the requirements of the RFP
Specified
within the timelines as mentioned in the RFP. The details of all such personnel will have to
Personnel
be shared in Personnel Deployment Plan in response to this RFP.
Means the number of simultaneous users accessing the application at the same time. For the
sake of removing any ambiguity, it is clarified that only those users who are actively using
Concurrent users
the application and not those users who are just logged in and are idle at the time of
reckoning will be counted for this purpose.
Any written contract between the Life Insurance Corporation of India and the successful
bidder with respect to any/all deliverables or services contemplated by this RFP. Any
Agreement
Agreement shall be deemed to incorporate, as schedules, this RFP , all addenda/corrigenda
issued by LIC, the Bid of the successful bidder and mutually agreed modifications thereto.
1.2 Abbreviations
Abbreviations Description
# Serial Number
AMC Annual Maintenance Contract
ATS Annual Technical Support
EDLI Employees Deposit Linked Insurance
eFEAP Enterprise Front End Application Package
EMD Earnest Money Deposit
GADLK Group Annuity DA Linked
GGCA Group Gratuity Cash Accumulation
GI Group Term Insurance
GLES Group Leave Encashment Scheme

GSCA Group Superannuation Cash Accumulation
GSLI Group Savings Linked Insurance
GST Goods aan Services Tax
IEEE Institute of Electrical and Electronics Engineers
INR Indian Rupee
IPR Intellectual Property Rights
ITB Instructions to Bidders
Ipv6 Internet Protocol Version 6
NDA Non-Disclosure Agreement
No. Number
OEM Original Equipment Manufacturer
OS Operating System
P&GS Pension & Group Schemes
PAN Permanent Account Number
PBG Performance Bank Guarantee
PDI Pre Dispatch Factory Inspection
POC Proof Of Concept
RFP Request for Proposal
RHEL Red Hat Enterprise Linux
RPO Recovery Point Objective
RTO Recovery Time Objective
SIT System Integration Testing
SLA Service Level Agreement
UAT User Acceptance Testing
VAT Value Added Tax
2. Request for Proposal
2.1 Invitation to Bid

LIC hereby invites sealed responses (hereinafter referred to as ―Bids‖) to this Request for Proposal (Ref:
LIC/CO/P&GS/RFP/2017-18 Dt:12.03.2018) from all eligible bidders to meet the requirements set out in this RFP
document on Turnkey basis. Details of Bid related activities are given in the activity schedule.
The formulation of the Evaluation criteria, the conduct of the evaluation of the responses to the RFP and the
subsequent selection of the successful bidder will be entirely at the discretion of LIC and its decision shall be
final and no correspondence about the decision shall be entertained.
Interested entities are advised to study this RFP document carefully before submitting their proposals in
response to the RFP. Submission of a proposal in response to this notice shall be deemed to have been done
after careful study and examination of this document with full understanding of its terms, conditions and
implications.
LIC reserves the right to negotiate, change, modify or alter any/all the terms and provisions of the
RFP/agreement entered pursuant to the RFP and may request for additional information, if required, from the
Bidder. LIC also reserves the right to withdraw this RFP without assigning any reason and without any liability
to the Bidder or any other person or party. All actions taken by the Bidder or any other person or party in
pursuance hereof are deemed to be so taken after taking into account the commercial acumen and LIC does
not guarantee or warrant suitability hereof or success to Bidder/Bidders or any other person or party.

This RFP describes what is required of the Bidder in terms of services, deliverables, performance measures and
outcomes, and unless otherwise noted in the RFP, places the responsibility for how they are accomplished on
the bidder.
2.2 Activity Schedule
# Description Detailed Information
1. Name of Project Centralized IT Application for ―Pension and Group

Schemes‖ System (CIAPS)
2. RFP Reference Number Ref: LIC/CO/P&GS/RFP/2017-18 Dated: 12.03.2018
3. EMD/Bid Security Rs. 1, 00,00,000/- (Rs. One Crore Only)
In the form of a Bank Guarantee as per format given in
Annexure V(To be submitted with Bid Submission.)
4. Last Date for Receiving On Saturday, 17.03.2018 2.00 pm
Bidder‘s Pre-Bid
clarifications in writing
5. Date, Time and Venue for On Monday, 19.03.2018 from 11.00 am
Pre Bid Meeting LIC of India, P&GS Dept., Central Office,
th
5 Floor East Wing Yogakshema,
Nariman Point, Mumbai- 400054
6. Last Date for response On Tuesday, 27.03.2018
from LIC for Bid queries All clarifications/results related to this bid will only be
communicated through our website –
http://www.licindia.in/tender_notice.htm
7. Last Date and Time for On Thursday, 05.04.2018 latest by 3.00 pm
Bid Submission
th
8. Place of Bid Submission LIC of India, P&GS Dept., Central Office, 5 Floor, East
Wing Yogakshema, Nariman Point, Mumbai- 400054
022-66599345, 022-66598942, co_pgsrfp@licindia.com
9. Date and Time of The Eligibility & Technical Bids will be opened by the
Eligibility & Technical Bid Tender opening committee of LIC in the presence of the
Opening bidders/ representatives who choose to attend on the Bid
submission date On Thursday, 05.04.2018 at 3.15 pm at
the above mentioned address.
10. Date and Time of Will be intimated to Technically Qualified Bidders
Commercial Bid Opening
11. Online Reverse Auction LIC will notify the date after indicative commercial bid
opening
12. Email-id for Any Mail Communication regarding this RFP must be sent
communication to email-id co_pgsrfp@licindia.com only.
The subject line must contain “P&GS RFP”.
Any mail communication not sent as above is likely to
get missed for which LIC will not be responsible.
13. Website Address www.licindia.in

The above schedule is tentative only and subject to change and any change will be notified
through the Website as mentioned in Section 2.2.
LIC reserves the right to extend the last date for the receipt of RFP Bids. LIC reserves the right to
cancel the RFP at any time without penalty and without incurring any financial obligation to the
Bidder.
The Eligibility & Technical Bids will be opened by the Tender opening committee of LIC in the
presence of the bidders/ representatives who choose to attend.
The Indicative Commercial Bids of the technically qualified bidders will be opened on the
notified date, by the Tender Opening Committee of LIC in the presence of the bidders/
representatives who choose to attend.
2.3 Project Background
LIC‘s insurance business is supported by two home grown Core Insurance Applications, namely eFEAP and
P&GS. eFEAP supports conventional life insurance business which involves the traditional and non-
traditional individual life, micro insurance and health insurance products. P&GS supports LIC‘s Group Life,
Pension and Superannuation business, offered to organizations and professional groups. The application
also supports the Social Security Insurance Schemes like Aam Aaadmi Bima Yojna /PMJJBY etc, mandated
by the Central and State Governments of India. P&GS on an average issues 20,000 new policies and adds
1.50 CR lives every year.
P&GS is the insurance application for LIC‘s Pension and Group Schemes catering to Quote, Issuance,
Servicing, Billing and Financial Management. P&GS solution is based on a distributed architecture built on
legacy technology and the application logic has been written in Power Builder and Oracle and has been
deployed at 76 sites of LIC today. The application has limited capabilities to integrate with other enterprise
wide applications in the corporation and the database is not designed to handle centralization. The
Systems should be able to exchange data from AP online ,MP online and similar Portals.
Looking at the urgent business requirements, we are undertaking restructuring of the present set up of
distributed data base. We are bringing as virtual machines (VMs) 48 units spread across Zones at 8 Zonal
Head Quarters. The remaining 28 units are being provided with independent servers. These locations are
mostly Metro cities and state capitals. We are also in the process of acquiring Oracle licenses for the same
for which RFP has been floated vide Ref: LIC/CO/IT-BPR/ Oracle Licenses 11g/2017-18/07 dated
14/02/2018
2.4 Objective for RFP
LIC intends to custom develop a robust and highly scalable Pension and Group Insurance System with the
required infrastructure (software and hardware) to support all the business, technical and functional
requirements related to LIC‘s group insurance business.
Based on an evaluation of the options and a selection of the ‗best fit‘, LIC aims to replace its current P&GS
Insurance system to meet the present and future business requirements.
The developed application should provide a competitive edge to LIC, especially with respect to offering
innovative insurance products with a quick time to market, increased operational efficiency, better

operational controls, superior service delivery, better risk management, higher client retention, highest
levels of regulatory and internal policy compliance, highest levels of claims management and superior and
timely management of information to support quick decision making at all levels of LIC.
With this RFP, LIC intends to enter into a turnkey contract with a suitably qualified Bidder/ System
Integrator to provide End-to-End solution comprising of but not limited to the following:
 Supply, Install, Upgrade, Commissioning and maintenance of Hardware

 Migration of the existing data and data base to new system
 Providing robust Disaster Recovery (DR) solution
 Database Management and System Administration
 Provide Project Management Services
 Provide Training
 Provide technically qualified Personnel and Administrators as required
 Provide responses to any Regulatory and / or Statutory requirements on priority basis
 Improve the system continuously as an ongoing activity.
The Bidders desirous to take up the project should have expertise in large scale System Integration and
have the capability to provide the solution. The bidders are requested to give technical and Commercial
Bids in accordance with the Terms and Conditions as per Section. 6. Evaluation criteria, evaluation of the
responses to the RFP and subsequent selection of successful Bidder will be entirely at the discretion of
LIC.
3 Instructions to Bidders
3.1 Qualification Criteria
3.1.1 Pre Contract Integrity Pact –This RFP is issued on the condition that only those bidders who submit
a signed Pre-Contract Integrity Pact with LIC would be eligible to participate in the bidding.
The ―Pre Contract Integrity Pact‖ can be downloaded from our website:
http://www.licindia.in/getattachment/Bottom-Links/Download-Forms/LIC_Integrity_pact.pdf.aspx
As per CVC Circular No 10/5/09 dated 18.05.2009 of Standard Operating Procedure (SOP) under clause No
2.02. "Integrity pact, in respect of a particular contract, would be operative from the stage of invitation of
bids till the final completion of the contract. Any violation of the same would entail disqualification of the
bidders and exclusion from future business dealings." Bidders may refer:
http://cvc.nic.in/iembank25022015.pdf
Only the bidders who meet all the qualifications mentioned i.e. Section 2.2.1 – Pre Contract Integrity Pact
and Section 5. Eligibility Criteria for this RFP are eligible to participate in the RFP.
3.1.2 Technology selection
If Database OEM is submitting the bid in response to this RFP as SI, then the same database technology
of that OEM cannot be proposed by any other SI.
3.2 General Instructions

1. The Bidder may download the RFP documents from the websites mentioned below:
a. LIC Website (http://www.licindia.in/Bottom-Links/Tenders.aspx)
b. Central Public Procurement Portal of GOI (http://eprocure.gov.in/cppp/)

2. The information provided in the RFP is believed to be true and reliable at the date obtained, but does
not purport to provide all the information necessary or desirable to enable the bidder to determine
whether or not to participate in the RFP.
3. The RFP provides an overview of the requirements, bidding procedures and contract terms. While
every effort has been made to provide comprehensive and accurate background information,
requirements and specifications, Bidder must form their own conclusions about the solution keeping
in view, LIC‘s requirements. Information contained in this RFP and corrigenda , if any , should be taken
as guidelines for Bidders.
4. Each bidder should conduct its own investigation and analysis and should check the accuracy,
reliability and completeness of the information in this RFP and wherever necessary obtain
independent advice.
5. LIC makes no representation or warranty and shall incur no liability under any law, statute, rules or
regulations as to the accuracy, reliability or completeness of this RFP.
6. LIC has used or will use its best judgment and assessment to fairly and reasonably represent the
nature and scope of the work in order to submit viable Bids. However, LIC shall not be deemed to give
any guarantees or warranties of accuracy of any of the information in this RFP or any corrigenda, nor
of its being comprehensive or exhaustive. Nothing in this RFP or any corrigenda is indented to relieve
Bidders from forming their own opinions and conclusions in respect of the matters addressed in this
RFP or any corrigenda, as applicable.
7. Failure to furnish all information required by the RFP or submission of a Bid not responsive to the RFP
in every aspect will be at the Bidder‘s risk and may result in rejection of the Bid.
8. In response to this Bid by the Bidder will be deemed as consent to all the terms and conditions
mentioned in this RFP along with its Annexure(s), Clarifications, if any.
9. All the terms and conditions and the contents of the RFP along with the Annexure(s) , Clarifications, if
any, will be contractually binding and will form part of the resulting agreement and any purchase
orders, to be issued to the successful Bidder, from time to time as an outcome of this process.
10. No commitment of any kind, contractual or otherwise shall exist unless and until a formal written
contract has been executed by or on behalf of LIC. Any notification of preferred Bidder status by LIC
shall not give rise to any enforceable rights to the Bidder.
11. This RFP supersedes and replaces any previous public documentation & communications, and Bidders
should place no reliance on such communications.
12. Failure to comply with the requirements of this RFP and corrigenda, if any, may render the Bid non-
complaint and the Bid may be rejected. Hence , Bidders must:
a. Include all required Documents, Certificates, etc. specified.
b. Follow the format provided and respond to each element in the order as set out
c. Comply with all requirements as set out.
13. LIC reserves the right to negotiate, change, modify or alter any/all the terms and provisions of the RFP
entered pursuant to the RFP and may request for additional information, if required from the Bidder.
LIC also reserves the right to withdraw this RFP without assigning any reason and without any liability
to the Bidder or any other person or party. All actions taken by the Bidder or any other person or party
in pursuance hereof will be deemed to have been taken after considering commercial acumen and
also taking into account that LIC does not guarantee or warrant suitability hereof or success to the
bidder or any other person or party.
3.3 Pre-Bid Meeting & Clarifications

a. LIC shall hold a pre-bid meeting with the prospective bidders as stated in Activity Schedule. Not
more than 2 representatives per bidder will be allowed to attend the meeting and the names of the
attendees will have to be informed to LIC by the bidder/prospective bidder through the mail id for

correspondence as mentioned in the Activity Schedule above, two working days in advance.
Representatives of the bidder(s) attending the pre-bid meeting will have to bring their company
Identity Cards at the time of pre-bid meeting for verification. The Bidders will have to ensure that all
their queries are submitted in one consolidated mail in a single excel sheet as per the format
mentioned in per Annexure XII – Queries on RFP, latest by the date & time mentioned in the
Activity Schedule.
b. Clarifications, if any, regarding the terms & conditions of this RFP, any error, omission or
discrepancy found in this RFP document, have to be obtained by the bidder latest by the date &
time mentioned in the Activity Schedule. Thereafter, no representations/ queries will be entertained
in this regard. Later on if any issue(s) arise LIC will consider the matter on merits and decide the
same, prior to opening of commercial bids.
c. The queries should necessarily be submitted in the format as per Annexure XII – Queries on RFP to
the email id co_pgsrfp@licindia.com. The file size should not exceed 1MB per mail. No other form of
communication shall be entertained.
d. LIC will endeavour to provide timely response to all queries. Any requests for clarifications received
after the indicated date and time may not be entertained by LIC.
e. At any time prior to the last date for receipt of bids, LIC may, for any reason, whether at its own
initiative or in response to clarifications requested by prospective Bidders, modify the RFP
Document by clarifications.
f. The clarifications will be notified to the Bidders on the http://www.licindia.in/tender_notice.htm.
These clarifications (if any) issued by LIC at any time before the due date of submission of the bid
will become a part of the RFP document.
g. In order to provide prospective bidders reasonable time for taking the clarifications into account,
LIC may, at any time prior to the date of bid submission extend the date for the submission of Bids.
h. Verbal Requests for clarification will not be entertained.
3.4 Partners
No consortium or joint bid or sub-contracting is allowed.
Bidder need to fulfil all the eligibility criteria and technical evaluation criteria in their individual
capacity unless mentioned otherwise. However, this RFP permits the Bidder to deploy one or more
partners with whom its relationship of the bidder pre-exists as on the date of bid submission.
Nevertheless, for all purposes the Bidder will be overall responsible for performance of the Work as
scoped under this RFP.
• Bidder needs to provide the following information in case he chooses partners:
o Name, Address and Contact details of the Partner/s
o Specific Role of the partner and division of work
o Details of Projects where Bidder has partnered with the entity in the past: Name of the
client, Scope of Work, Duration of Project (in man months) Work executed by the Bidder,
Work Executed by the Partner
o Details of past projects executed by the Partner : Client Name, Type of Service Provided,
Duration of Project (in man months)
o Power of Attorney will be submitted with the Eligibility Bid, authorizing the bidder as Prime
Proponent to act on behalf of the partners for all legal and financial matters pertaining to
this Bid and the resulting contract if any.
o The Memorandum of Understanding (MOU) will also be submitted with the Eligibility Bid,
between all the Partners and the prime proponent.
• Other conditions for this clause:

o Prior to any communication or distribution of LIC‘s confidential information to the
potential partner, the bidder must provide LIC with the name of the potential partner in
advance and in writing. The bidder must ensure that the confidentiality of the Information
must remain intact and the provisions of the Non-Disclosure Agreement are adhered to.
Bidder must obtain prior written approval before providing any confidential information of
LIC to a potential partner.
o The bidder will ultimately be responsible for the performance under this RFP and all
actions, omissions, commissions, etc. of the partner, including compliance with the service
levels.
o The composition of the partnership shall not be altered during the term of contract
without the prior written approval of LIC.
o Once the bid is submitted, LIC will for all purposes interact and transact only with the
Prime Bidder and shall not be responsible for interaction or representations from or to the
partners.
3.5 Issue of Corrigendum
1. LIC will endeavour to provide timely response to all queries in utmost good faith.
However, LIC at its discretion may choose not respond to the query which is not
under purview of this RFP.
2. At any time prior to the last date for receipt of Bids, LIC,may , for any reason, whether
at its own initiative or in response to a clarification requested by a Bidder, modify the
RFP Document by issuing corrigendum.
3. The corrigendum (if any) and clarifications to the queries from all Bidders will be
posted on LIC‘S website www.licindia.in under Tender section and also on Central
Public Procurement Portal of GOI under the link http://eprocure.gov.in.in/cppp/
4. Any such corrigendum shall be deemed to be incorporated into this RFP.
5. In order to allow Bidders a reasonable time to take the amendments if any, into
account in preparing their Bids, LIC , at its discretion, may extend the last date for the
submission of Bids.
6. Any change in the timelines as decided by LIC will be posted in LIC website and
Central Public Procurement Portal of GOI. The Bidders, in their own interest are
requested to check both Websites regularly to know the updates.
3.6 Terms and Conditions
This RFP document along with its Annexures/Appendices/ clarifications/addenda/corrigenda

states the terms and conditions of this RFP. Responding to this RFP and submission of the bid
by the Bidder will be deemed as consent from the Bidder to all the terms and conditions
mentioned in this RFP and these will be contractually binding on the bidders. All these terms
and conditions and the contents of the RFP along with the Annexures/Appendices/
clarifications/addenda/corrigenda issued will form the part of the purchase orders and any
resulting contracts with the vendor/s from time to time as an outcome of this RFP Process.

3.7 Information provided in the RFP
The information provided in the RFP is believed to be true and reliable at the date obtained,
but does not purport to provide all the information necessary or desirable to enable the
bidder to determine whether or not to participate in the RFP. Each bidder should conduct its
own investigation and analysis and should check the accuracy, reliability and completeness of
the information in this RFP and where necessary should obtain independent
information/advice. LIC makes no representation or warranty and shall incur no liability under
any law, statute, rules or regulations as to the accuracy, reliability or completeness of this RFP.
3.8 Right to Accept Any Proposal and To Reject Any or All Proposal(s)
LIC reserves the right to accept or reject any proposal, and to annul the tendering process
and reject all proposals at any time prior to award of contract, without thereby incurring any
liability to the affected bidder or bidders or any obligation to inform the affected bidder or
bidders of the grounds for LIC‘s action
1. Contacting LIC
No Bidder shall contact through any means of communications LIC or its employees on any
matter relating to this bid, from the time of the bid opening to the time the Contract is
awarded. If the bidder wishes to bring additional information to the notice of LIC, it should
do so through the designated email-id as given in the Activity Schedule or in writing till the
evaluation process is over. Any effort by a Bidder to influence LIC in its decisions on bid
evaluation, bid comparison or contract award may result in rejection of the Bidder‘s bid.
2. Right to terminate the Process
a) LIC may terminate the RFP process at any time without assigning any reasons
whatsoever. LIC makes no commitments, express or implied, that this process will result
in a business transaction with anyone.
b) This RFP document does not constitute an offer by LIC. The bidder's response to this RFP
may result into selection of bidder(s) after completion of selection process as detailed in
this RFP document.
c) LIC reserves the right to accept or reject any proposal, and to annul the RFP process and
reject all proposals at any time, without thereby incurring any liability to the affected
bidder or bidders or any obligation to inform the affected bidder or bidders of the
grounds for its action.
d) LIC may cancel any procurement under this RFP at any time without assigning any
reasons whatsoever. The decision of LIC will be final in this matter.
3. Disqualifications
LIC may at its sole discretion and at any time during the evaluation of Proposal, disqualify
any Bidder, if the Bidder has:
a) Made misleading or false representations in the forms, statements or attachments
submitted in proof of the eligibility requirements;
b) Exhibited a record of poor performance such as abandoning works, not properly
completing the contractual obligations, inordinately delaying completion or financial
failures, etc. in any project in the preceding three years;
c) Submitted a proposal that is not accompanied by required documentation or is
nonresponsive;

d) Failed to provide clarifications related thereto, when sought;
e) Submitted more than one Proposal;
f) Declared ineligible by the Government of India/State/UT Government/ PSUs for corrupt
and fraudulent practices or blacklisted.
g) Submitted a Proposal with price adjustment/variation provision.
4. Fraud and Corrupt Practices

The Bidders and their respective officers, employees, agents and advisers shall
observe the highest standard of ethics during the Selection Process. Notwithstanding
anything to the contrary contained in this RFP, the LIC shall reject a Proposal without being
liable in any manner whatsoever to the Applicant, if it determines that the Bidder has,
directly or indirectly or through an agent, engaged in corrupt practice, fraudulent practice,
coercive practice, undesirable practice or restrictive practice (collectively the ―Prohibited
Practices‖) in the Evaluation Process. In such an event, the LIC shall, without prejudice to its
any other rights or remedies, forfeit and appropriate the EMD or PBG, as the case may
be, as mutually agreed genuine pre-estimated compensation and damages payable to
LIC for, inter alia, time, cost and effort of LIC, in regard to the RFP, including consideration
and evaluation of such bidder‘s Proposal.
Without prejudice to the rights of the LIC under Clause above and the rights and remedies
which the LIC may have under the Letter of Notification of Award or the Agreement, if
Bidder, as the case may be, is found by the LIC to have directly or indirectly or through an
agent, engaged or indulged in any corrupt practice, fraudulent practice, coercive practice,
undesirable practice or restrictive practice during the Selection Process, or after the issue
of the Letter of Notification of Award or the execution of the Agreement, such Bidder shall
not be eligible to participate in any tender or RFP issued by LIC during a period of 3 years
from the date such Bidder, as the case may be, is found by LIC to have directly or through
an agent, engaged or indulged in any corrupt practice, fraudulent practice, coercive
practice, undesirable practice or restrictive practice, as the case may be.
For the purposes of this Section, the following terms shall have the meaning hereinafter
respectively assigned to them:
a) ―corrupt practice‖ means (i) the offering, giving, receiving, or soliciting, directly or
indirectly, of anything of value to influence the action of any person connected with the
Selection Process (for avoidance of doubt, offering of employment to or employing or
engaging in any manner whatsoever, directly or indirectly, any official of LIC who is or has
been associated in any manner, directly or indirectly with the Selection Process or the LOI
or has dealt with matters concerning the Agreement or arising there from, before or after
the execution thereof, at any time prior to the expiry of one year from the date such official
resigns or retires from or otherwise ceases to be in the service of LIC, shall be deemed to
constitute influencing the actions of a person connected with the Selection Process); or (ii)
save as provided herein, engaging in any manner whatsoever, whether during the Selection
Process or after the issue of the LOI or after the execution of the Agreement, as the case
may be, any person in respect of any matter relating to the Project or the Award
or the Agreement, who at any time has been or is a legal, financial or technical adviser of

LIC in relation to any matter concerning the Project;
b) ―fraudulent practice‖ means a misrepresentation or omission of facts or disclosure of

Incomplete facts, in order to influence the Selection Process;
c) ―coercive practice‖ means impairing or harming or threatening to impair or harm,

directly or indirectly, any person or property to influence any person‘s participation or
action in the Selection Process;
d) ―undesirable practice‖ means (i) establishing contact with any person connected with or
employed or engaged by Life Insurance Corporation of India with the objective of
canvassing, lobbying or in any manner influencing or attempting to influence the Selection
Process; or (ii) having a conflict of Interest; and
e) ―Restrictive practice‖ means forming a cartel or arriving at any understanding or

arrangement among bidders with the objective of restricting or manipulating a full and fair
competition in the Selection Process.
5. Consortiums or sub-contractor
No consortium bidding is allowed. LIC will not consider joint or collaborative proposals that
require a contract with more than one prime Vendor. Bidder need to fulfill all the eligibility
criteria and technical evaluation criteria in its individual capacity unless mentioned
otherwise.
3.9 Bid Document Price

1. The Bid Document Price shall be Rs. 10,000/- (Rupees Ten thousand Only) payable by way of a
non-refundable Demand Draft drawn in favour of Life Insurance Corporation of India, payable
at Mumbai, drawn on any Nationalized or Scheduled bank.
2. The Demand Draft has to be enclosed along with documents submitted for and as a part of
requirement. Bids received without or with inadequate Bid Document Price shall be rejected.
3. If a Single Bidder wishes to submit different Solutions, multiple Bids are allowed. In such
circumstances, the Bidder will have to pay Bid Document Price separately for each of the Bids.
However, one EMD will be sufficient for the Bidder.
3.10 Earnest Money Deposit

Bidders shall submit, along with the Technical Bid, an EMD of Rs. 1,00,00,000/- (Rupees One
Crore only) in the form of Bank Guarantee (BG) as per the format given in Annexure V, which
should be executed by a Nationalized/ Scheduled bank acceptable to LIC and having its
branches in Mumbai.
Listed below are the other terms & conditions related to EMD:
a. EMD shall be valid for a period of one year from the date of submission of bids/proposal.
b. LIC will not pay any cost or interest on the EMD for any period in any case.
c. EMD will be returned to the issuing Bank under intimation to the Bidder in lieu of the
performance bank guarantee submitted by the selected Bidder.
d. The EMD of those Bidders who do not qualify in the eligibility evaluation or technical
evaluation, will be returned to the issuing Bank without interest within 30 days of publication of
the evaluation results.

e. In the case of a successful Bidder being identified, the successful Bidder withdraws its offer or if
the bidder fails
1. To sign the Contract; or

2. To furnish Bank Guarantee towards the Performance Guarantee as mentioned in this
RFP,
The EMD shall be forfeited.
f. The EMD of the unsuccessful Bidders as per the commercial evaluation, will be returned to the
Bank of the Bidder without interest:
a. after the process under this RFP is over, and

b. the contract between LIC and the Successful Bidder gets executed or the purchase order
issued by LIC with respect to this RFP is honoured by the Successful Bidder.
g. The EMD submitted by the bidder may be forfeited in full or part, as decided by LIC, if:
i. In the case of a successful Bidder, the bidder qualifies and backs out of the L1
-
Disclosure Agreement (NDA) as per LIC‘s format (Annexure – ----).
ii. In case the bidder is found to be indulging in Fraudulent & Corrupt practices as
defined in this RFP; or
iii. The Bidder withdraws or amends its Bid during the period of Bid validity specified by
the Bidder on the Bid Form; or
iv. The Bidder makes any statement or encloses any form which turns out to be
false/incorrect at any time prior to signing of Contract; or
v. Bidder does not respond to requests for clarification of its Bid; or
vi. Bidder fails to provide required information during the evaluation process or is
found to be non-responsive.
h. Bids submitted without EMD or submitted with an EMD not conforming to above criteria, will
be treated as non- responsive and will be summarily rejected by LIC.
i. In exceptional circumstances, LIC may seek the Bidders‘ consent for extension of the period of
validity of bids. The request and the responses thereto shall be made in writing. In such a case,
the EMD provided shall also be suitably extended. A Bidder may refuse the request without
forfeiting its EMD unless it is the successful bidder who has been notified by LIC that its bid has
been accepted. A Bidder granting the request will not be required nor permitted to modify its
bid.

3.11 Bid Submission
The submissions need to be made at the address, time and date as stated in this RFP. All
envelopes should be securely sealed and stamped. The authorized signatories of the Bidder
should initial on all pages of the proposal.
The Bidder needs to submit one Master Envelope. Master envelope should be super-scribed as
―Bid submission on CIAPS ,Submitted by --------- (bidder’s name) “. This master envelope
should contain 4 sub-envelopes. All envelopes must be prepared and super-scribed with the
following information:
a) Envelope-1 for Pre-Contract Integrity Pact EMD& Bid price– The First sub Envelope
containing the Bank Guarantee for EMD & Bid price , Pre-contract Integrity Pact and
Letter of Intent should be sealed and super-scribed as:
“Pre-Contract Integrity Pact, EMD & Bid price for RFP Ref: LIC/CO/P&GS/RFP/2017-
18 Dt:12.03.2018
For Centralized IT Application for P&GS System (CIAPS) of LIC of India,
SUBMITTED BY _________ (Bidder’s Name)”
b) Envelope-2 for Eligibility Bid –Second sub envelope containing one hard copy and
one soft copy on CD of the Eligibility Bid as elaborated in 3.12.b along with the
supporting documents should be securely sealed, stamped and super-scribed as:
“ELIGIBILITY BID for RFP Ref: :LIC/CO/P&GS/RFP/2017-18 Dt:12.03.2018
For Centralized IT Application for P&GS System (CIAPS) of LIC of India”
c) Envelope-3 for Technical Bid – Third sub envelope containing one hard copy and one
soft copy on CD prepared towards the response of Technical Bid along with the
supporting documents should be securely sealed, stamped and super-scribed as:
“TECHNICAL BID for RFP Ref LIC/CO/P&GS/RFP/2017-18 Dt:12.03.2018
A masked copy of the commercial proposal after masking the prices should accompany
the technical proposal. Technical Offer document should not contain any price
information.
d) Envelope-4 for Commercial Bid – Fourth sub envelope containing one hard copy and
one soft copy on CD of the Commercial Bid should be securely sealed, stamped and
super-scribed as:
“COMMERCIAL BID for RFP Ref: LIC/CO/P&GS/RFP/2017-18 Dt: 12.03.2018

e) Other Information required on the envelope and sub-envelopes - Name of Bidder,

Contact Person, Contact Address, E-mail address and Phone number.
f) Please note that if the sub envelope containing technical bid is found to contain
commercial Bid also, then that bid will be rejected outright.
g) Please Note that Prices must not be indicated in the Technical Bid, failing which
the Bid may be rejected.
h) The bidder should not respond to this RFP / quote for this requirement in consortium
with any other partner. All such consortium bids will be summarily rejected.
i) Participation in this tender will mean that the bidder has accepted all terms and
conditions and clauses of this RFP/tender and subsequent modification(s) to this
tender, if any.
j) The Bidder should certify that the contents of the CD‘s are the same as that provided
by way of hard copy. The format of the letter to be submitted is given in Annexure
XIII. In the event of a discrepancy, the hard copy details would prevail.
k) The Bidders should submit their Bid along with required Bank guarantee towards the
EMD, Annexure V, other required documents and Certificates as stated in the Section
―Eligibility Criteria‖ or elsewhere in the RFP.
l) All hardcopies of the bid must be spirally bound and pages serially numbered.
m) The hardcopies of the bid (all documents and Annexure submitted as a part of bid or
called for by LIC) must be duly signed on each page and stamped on each page. Bid
shall be signed by the Bidder or a person duly authorized to bind the Bidder to the
Contract. Authorization by the bidder for the signatory shall be in form of a Power of
Attorney or a duly certified copy of the Board resolution appointing the authorized
signatory. The person signing the bid shall sign all pages of the bid, except for un-
amended printed literature.
n) The bid may be treated as legally void and will be rejected if:
i. Bid is not signed by the duly authorized person or
ii. Bid submitted is unsigned or partially unsigned or
iii. An image of signature found pasted on pages instead of wet signature or
iv. Scanned bid is submitted.

By submitting a signed bid, the bidder‘s signatory certifies that in connection with this
RFP:
• The bidder‘s organization or an agent of the bidder‘s organization has arrived
at the technical offer and prices in its bid without consultation, communication
or agreement with any other respondent or with any competitor, with a view to
restrict competition,
• The prices quoted in the bid have not been knowingly disclosed and will not be
knowingly disclosed by the bidder‘s organization or by any agent of the
bidder‘s organization, directly or indirectly, to any other respondent or to any
competitor.
• No attempt has been made or will be made by the bidder‘s organization or by
any agent of the bidder‘s organization to induce any other person or firm to
submit or not to submit a bid for the purpose of restricting competition.
o. Non-Disclosure Agreement (NDA)
The successful bidder shall submit, a duly notarized Non-Disclosure agreement on a

stamp paper of Rs.250/- (Rupees two hundred fifty only) as per the format given in
Annexure – IV duly signed by the Authorized Signatory of the Company.
p. Language of Bid
The bid prepared by the Bidder, as well as all correspondence and documents relating
to the bid exchanged by the Bidder and LIC shall be in English language. As far as
numbers are concerned the same should be in Hindu-Arabic Numerals.
q. Bid Currencies
Prices for all the components shall be quoted in Indian Rupee (INR). The Bids in
currencies other than INR will be rejected.
r. Arithmetical errors
The Arithmetical errors will be rectified on the following basis. If there is a discrepancy
between the unit price and the total price that is obtained by multiplying the unit
price and quantity, the unit price shall prevail and the total price shall be corrected. If
there is a discrepancy between words and figures, the amount in words shall prevail. If
the bidder does not accept the correction of errors, its bid will be rejected and its
EMD may be forfeited.
s. The original Bid shall be typed on 8.27‖ by 11.69‖ (A4 size) paper in indelible ink.
t. Ordinarily the bid shall contain no overwriting. Any interlineations, erasures or

overwriting shall be valid only if authorised signatory of the bid countersigns
them.
u. The contents of the Soft copies submitted in the CD and the contents of the Hard
copies shall be exactly the same. If not, the bid may be rejected.

v. During Technical Bid evaluation if any deviation is observed, LIC may call for
clarifications and may decide to accept any deviation at its discretion and the decision
of LIC in this matter will be final. However this will be done before opening of
commercial bids.
w. If any compliance or clarification sought by LIC is not submitted within 3 business days
of being called for, the bids are liable to be rejected. The above matter is entirely at
LIC‘s discretion and decision of LIC in this matter will be final.
x. Assumptions / Deviations:
The bidder may provide assumptions / deviations on technical only to the contents of
this RFP document at the time of submission of the Bid in envelope containing the
Technical Bid in the format given in Annexure-XXIV with the caption : Schedule of
Assumptions and Deviations from RFP. It may be noted that once the assumptions /
deviations are provided, the Bidder would not be allowed to withdraw the same. The
Bid Evaluation Committee would evaluate and re-classify them as "material deviation"
or "non-material deviation" . In case of material assumption / deviation, the
committee may decide to monetize their value, which has to be added to the price
bid submitted by the bidder, or reject the bid, prior to announcement of technical
scores. The bidders would be informed in writing on the committee's decision on the
assumptions / deviations, prior to announcement of technical scores. The bidder
would not be allowed to withdraw the assumptions / deviations at this stage. No
correspondence in this matter will be entertained. In case of non-material
assumptions / deviations, the same would form a part of the Bid and the Contract.
3.12 Documents Required for Bid Submission
The Bidder‘s proposal must effectively communicate their proposed approach and be formatted
in the specified formats in order for LIC to assess the alternatives. The proposal should contain
the details as requested in this RFP. Kindly refer to the below checklist points:
a) Bank Guarantee of EMD, bid price and letter of Intent
# Document Reference Document Title

1. Pre-Contract Integrity Pact Pre-Contract Integrity Pact
2. Annexure – V Bank Guarantee for EMD
3. Bid price DD for Rs. 10,000/-
4. Letter of Intent Annexure- III
b) Eligibility Bid
The eligibility envelop should have the following documents:

1. Annexure – VI Eligibility Criteria Compliance
2. -- Supporting Documents as detailed in Annexure

VI
3. Annexure- IV Non Disclosure Agreement
4. Annexure -I Letter of Authorization
5. Annexure -II Pre-contract integrity Pact
c) Technical Bid
The technical bid envelop should have the following documents:

1. Annexure VII Functional Requirements
2. Annexure VIII Technical Solution Requirements
3. Annexure XI (B) Commercial Bid Details (masked)
4. Annexure XIII Technical Cover Letter
5. Annexure XIV Technical Evaluation Criteria
6. Annexure XV Personnel Deployment
7. Annexure XVI Hardware Sizing
8. Annexure XIX Bandwidth Details
9. Detailed Technical Response in line with details as mentioned in Annexure XVII- Technical
Response
10. Annexure XXIV Schedule of Assumptions / Deviations
The Technical proposal must be made in a structured and neat manner and should cover the
points as mentioned under sections for scope of work and detailed scope of work. Brochures /
leaflets etc. should not be submitted in loose form. The suggested details to be covered as a
part of the technical response are as provided in Annexure XVII.
If LIC is not satisfied with the technical specifications in any RFP response and observes
deviations, the technical proposal of such Bidder/s may not be short-listed and the Commercial
Proposals of such Bidder/s may not be opened. No further discussions shall be entertained with
such Bidders in respect of the subject technical bid. The decision of LIC shall be final and
binding in that regard.
d) Commercial Bid
The Commercial Proposal should give all relevant price information and should not
contradict the Technical Bid in any manner.
The format for submission of Commercial offer is as follows:
 Annexure XI (A) - Commercial Bid Details (unmasked)
The above list of requirement is indicative. The bidder should refer to the complete RFP for all
requirements that are required to be submitted along with Eligibility Bid, Technical Bid and
Commercial Bid(s). The Annexure and its contents should be submitted as stated in the format
only. The Bid may be rejected in case of non-adherence to any of the above instructions.
Any request for the change in the terms and conditions of the RFP document, will not be
accepted.

3.13 . Evaluation Process
From the time the Bids are opened until the time the Contract is awarded, the bidder should not contact
LIC or its employees on any matter related to this RFP/Bid. Any effort by the bidder to influence LIC in the
examination, evaluation, ranking of bids, and recommendation for award of Contract may result in the
rejection of the bid. If the bidder wishes to bring additional information to the notice of LIC, it should do
so in writing.
At the sole discretion and determination of LIC, LIC may add any other relevant criteria for evaluating the
proposals received in response to this RFP and also may make modifications to the marks / weights given
under various categories for evaluation of the technical proposals prior to the last date of submission of
the bids.
The evaluation will be a three-stage process:-
 Stage 1 – Eligibility Criteria Evaluation
 Stage 2 – Technical Bid Evaluation
 Stage 3 – Commercial Evaluation
The Evaluation of the various options available to LIC to identify the best partner to custom build the
P&GS Insurance Application:
 Ability to meet detailed Functional Requirements
 Ability to meet detailed Technical Requirements
 Implementation Capabilities
 Total Cost
LIC would use a scoring mechanism elaborated in the sections below to score each of the RFP responses
with appropriate apportionment of scores.
The eligibility and the evaluation criteria are to be fulfilled by the Bidder/System Integrator in their
individual capacity except for those criteria where stated otherwise. Bidders experience will be considered
if the same is from an acquired entity or derived from parent company, bidder in this case being the
demerged entity, the fact must be supported with documentary evidence.
3.14 Procedure for opening of the bids

Bids received before the specified closing date and time given in the Activity Schedule will be opened
in the presence of bidders‘ representatives (maximum two representatives per bidder in each of the bid
openings) who choose to attend the opening of the bids on the specified date, time and venue as given
in the Activity Schedule.
a. The date and Venue of the opening of the bids shall be as per the Activity Schedule. The Master
Envelope shall be opened by LIC in the presence of the bidders/their authorized representatives
who choose to attend, as per the activity schedule.
b. The Eligibility Bid along with the Technical bid shall be opened as stated in the activity schedule
and after completion of evaluation of eligibility bid, the result of the bidders qualifying for the
technical evaluation will be notified on the LIC website.
c. On completion of the Technical Bids evaluation, the list of short-listed bidders and the date, time
& venue of opening of their Commercial bids will be notified on the LIC website.
d. The commercial bids of technically shortlisted bidders will be opened by LIC in the presence of
the bidders/ their authorized representatives who choose to attend.

e. The representatives of the bidders should carry the organisation‘s photo identity card or a letter
of authority bearing their photograph from the bidder organisation to identify their credentials
for attending the opening of the commercial Bids.
i. Clarification sought by LIC on Bids

During evaluation of bids, LIC may, at its discretion, ask the Bidder for clarifications on its bid. The
request for clarification and the response shall be through the designated mail.
ii. Modification and Withdrawal of the Bids

No bid can be modified or withdrawn by a bidder, after the submission of the bid. The bid and all
the supporting documents submitted by the bidders shall be the property of LIC.
iii. Compliant Bids / Completeness of Response

a) The responses to this RFP must be complete and comprehensive with explicit documentary
evidence in support. Information should be submitted in the same format as per the
Annexure(s) attached.
b) Bidders are advised to study all instructions, clarifications, terms, requirements, Annexures and
other information in this RFP document carefully. Submission of the bid / proposal shall be
deemed to have been done after careful study and examination of the RFP document with full
understanding of its implications.
c) Failure to comply with the requirements as set out within the RFP and failure to submit the bid
as detailed in the RFP may render the bid non-compliant and the Bid may be rejected.
d) Bid with insufficient information to permit a thorough evaluation may be rejected.
e) LIC reserves the right to verify the validity of bid information, and to reject any bid where the
same appears to be incorrect, inaccurate or inappropriate in LIC‘s estimation.
f) Bids not conforming to the requirements of the terms and conditions may not be considered by
LIC. However, LIC reserves the right, to waive/ modify any of the requirements of the bid, in, the
best interests of LIC.
g) Rejection of non-compliant bid:
 LIC reserves the right to reject any or all bids on the basis of any deviation(s).
 Bids found with suppression of details, subjective, conditional offers, partial offers will be
rejected. The decision of LIC in the evaluation of bids shall be final
3.15 Bid Validity Period

Bids shall remain valid for one year after the submission of Bids as prescribed by LIC, in the Activity
Schedule. LIC shall reject a bid as non-responsive if the bid is submitted with a shorter validity period.
In exceptional circumstances, LIC may solicit the Bidder‘s consent for an extension of the period of validity.
The request and the response thereto shall be made in writing and the validity period of EMD will be
suitably extended. A Bidder may refuse the request without forfeiting its EMD unless it is the successful
bidder who has been notified by LIC that its bid has been accepted. A Bidder granting the request will not
be required nor permitted to modify its bid.
i. Late Bids
Bids received after the date and time specified in the Activity Schedule will not be considered and will be
rejected. LIC may, at its sole discretion change the date/time of submission and LIC‘s decision in this
matter will be final.

ii. Cost of Bidding
The bidder shall be responsible for and bear all the costs incurred in connection with participation in the
RFP process, preparation and submission of its bid, including, but not limited to, costs incurred in conduct
of informative and other diligence activities, participation in meetings/ discussions/ presentations,
preparation of proposal, in providing any additional information required by LIC to facilitate the
evaluation process. LIC will in no case be responsible or liable for any costs, regardless of the conduct or
outcome of the bidding process.
iii. Relationship between LIC and the bidders

It is clarified that no binding relationship exists between any of the bidders and LIC till the execution of a
contractual agreement.
4 Criteria for Evaluation

4.1 Stage 1- Eligibility Criteria Evaluation
The Bidder needs to comply with all the eligibility criteria mentioned below in section 3 of the RFP to be
eligible for evaluation in Stage 2. Non-compliance to any of these criteria would result in outright rejection
of the Bidder‘s proposal. The Bidder is expected to provide proof for each of the points for eligibility
evaluation. The proof provided has to be in line with the details mentioned in “Annexure VI - Eligibility
Criteria” Eligibility Evaluation Details. Any credential detail mentioned in “Annexure VI - Eligibility
Criteria” and not accompanied by relevant proof documents will not be considered for evaluation. All
credential letters/purchase orders/contract copies should be appropriately bound, labeled and segregated
in the respective areas. The Bidder needs to provide the minimum number of credentials mentioned in
Annexure VI, but there is no restriction on the number of credentials a Bidder can provide.
The decision of LIC would be final and binding on all the Bidders to this RFP. LIC may accept or reject an
offer without assigning any reason what so ever.
4.2 Stage 2 – Technical Bid Evaluation

i. The evaluation will be done on a total score of 1450.
ii. The proposal evaluation would be split into Seven Steps:
Steps Evaluation Marks

1 Technical Requirements 500
2 Proof of Concept 250
3 Project Implementation Capability 110
4 Architecture/Software/Backup 120
5 Hardware Sizing 150
6 Project Management Team 180
7 Migration Activity 140
Total 1450
iii. At the sole discretion and determination of LIC, LIC may add any other relevant criteria for evaluating
the proposals received in response to this RFP and also may make modifications to the marks /
weightage given under various categories for evaluation of the technical proposals.

iv. Customer Reference and Feedback
Responses received in Annexure XIV – Related Experience would be used for

evaluating the Bidder‘s previous relevant experience.
v. Technical Proposal Evaluation

The evaluation of the Technical Proposals will be done by LIC on the basis of the Company and
Team Profile as provided below and Technical Requirements vis-à-vis models/frameworks offered
for analysis in relation to:
 Completeness of the Technical bid in all respects and availability of all information/details asked
for in the RFP.
 The compliance mentioned by the Bidder to the application architecture requirements

Annexure VIII – Technical Solution Requirements document. It is the sole discretion of LIC to
disqualify a Bidder if that Bidder is unable to comply with the requirement set in this document.
 Point to point conformity to the technical requirements provided in the Technical and
Functional RFP
vi. Application Demonstration

The Bidder will have to demonstrate a core insurance application as developed and customized by
the Bidder for an insurance client to service Group Life Insurance business. The demonstration at
minimum should cover the following;
 Products and processes supported

 Functionalities and modules developed within the application
 Unique client requirements catered by the application
vii. Technical Presentation

LIC may require the Bidders to make presentations regarding the various aspects of the proposed
design approach and architecture. This process will also enable LIC to clarify issues that may be
identified from the Bidders‘ response to the RFP.
LIC will schedule the application demonstration and technical presentations and intimate the
bidders of the time and locations. Failure of a bidder to complete a scheduled presentation may
result in the rejection of that Bidder‘s proposal. The agenda for the presentation will be shared
along with the exact time and location for the presentation. The overall scope of the presentation
will have to include implementation and project management approach and plan, team expertise,
relevant case studies and unique value propositions.
viii. Implementation and Project Management Methodology

In the Technical presentation, the Bidder will be assessed based on the methodology proposed for
designing, developing implementing and maintaining the complete Insurance Application along
with the Support applications and the necessary interfaces. The methodology proposed would be
examined against the completeness and adherence to the requirements stipulated in the RFP
document. The bidder is expected to follow the methodology submitted in its response to this RFP
with an aim to manage and complete the work and responsibilities successfully as per the RFP.
The Bidder needs to elaborate on the proposed end to end solution architecture covering:
1. Information
2. Integration
3. Application

4. Infrastructure and Security Architecture
The Bidder needs to elaborate on the methodology for project implementation and management.
These should include;
 Detailed Project Plan
 Bidder personnel qualifications, including education, certifications, relevant work experience-

Responses received in Annexure XV –Personnel Deployment Plan would be used for
evaluating the Bidder on the skills and experience in accordance with the requirements of
this project
 Control Measures for a quality implementation
 Operation and Maintenance Support
ix. Short Listing

The Bidder needs to achieve a cut – off score of 70% of the Total Score and 50% score for each item listed
in 4.2.ii for the Proposal Evaluation independently to be eligible for commercial evaluation. In the event
only one Bidder qualifies LIC will have the right to open the commercial bid of that single qualified Bidder
or also consider the next closest bidder for commercial evaluation subject to that bidder scoring a
minimum of 725 marks out of 1450. In the event that none of the Bidders qualify, then LIC at its discretion
may choose to select two Bidders who have achieved the top 2 scores to qualify for the next stage subject
to both bidders scoring a minimum of 725 marks out of 1450. The decision of LIC shall be final and
binding in that regard.
After the Technical Evaluation, the individual technical score of the bidder will be shared with that bidder
only. Bidder will be given 6 days‘ time to submit its acceptance to its technical scores. If a bidder does not
revert within 6 days, it will be taken that bidder has accepted its score.
Based on the sum of the Technical Evaluation scores obtained, the Bidders will be shortlisted for Stage 3 of
the evaluation which would be the Commercial Bid Evaluation.
x. Normalization of Bids
1. LIC may, at its sole discretion, decide to seek more information from the Bidders in order
to normalize the Bids. However, Bidders will be notified separately, if such normalization
exercise is resorted to.
2. Normalization will be done to the extent possible and feasible to ensure that Bidders are
meeting the requirements of the RFP to the extent possible and that the interest of LIC is
protected. LIC reserves the right to normalize any or all of the technical bids. If such
normalization has a bearing on the price, LIC may at its discretion ask the bidders eligible
for technical evaluation to submit the technical and commercial bids once again for
scrutiny.
3. The submissions can be requested by LIC in the following two manners:
a. Incremental technical bid and/or incremental price submissions in part of the
requested clarifications by LIC (or)
b. Revised technical and/or price submissions of the part or whole Bid
4. The process of normalization may be iterative till such time LIC is satisfied with the
response of the Bidders.
5. Post the normalization process in case any Bidder has not quoted for any of the
components, the response would be deemed to conclude that the unquoted components
required for meeting the functional and technical requirements including the service

levels specified in this RFP have been included in the total fixed cost in the Annexure-XI
(A)and Annexure-XI(B)the Commercial Bid.
6. The Bidder by participating in this tender agrees to the normalization process being
followed and adopted by LIC and has no reservation on the process adopted. In the event
the Bidder has any query on the normalization process the same may be raised by the
Bidder as part of the pre-bid queries.
7. This clause is applicable for only those items where the Bidder has quoted inadequately
in terms of quantity or description or sizing, in such cases the bidder will provide the
additional quantities at the same rates quoted in the price Bid.
8. This clause is not applicable for items where the Bidder has missed out quantities or
scope items, in such cases the bidder will have to make good such items or scope at no
additional cost to LIC.
9. LIC can repeat this normalization process at every stage of bid submission till LIC is
satisfied. The Bidders agree that they have no reservation or objection to the
normalization process and all the Bidders will, by responding to this RFP, agree to
participate in the normalization process and extend their co-operation to LIC during this
process.
10. The Bidders, by submitting the response to this RFP, agree to the process and conditions
of the normalization process.
LIC, at its discretion, will go through a process of normalization of the bids to the extent possible and
feasible, to ensure that Bidders are more or less on the same technical ground.How ever, Bidders will be
notified separately, if such normalization exercise is resorted to. After the normalization process, if LIC‘s
technical evaluation team feels that any of the bids needs to be normalized and that such normalization
has a bearing on the price bids, LIC may at its discretion ask all the technically short-listed Bidders to
resubmit:
• Incremental Technical and Commercial bids, or
• Complete Technical and Commercial bids once again.
LIC can repeat this normalization process several times at after each submission and subsequent
evaluation of the technical submission, till LIC is satisfied. By responding to this RFP, the Bidders have
agreed that they have no reservation or objection to the process & conditions of normalization and will
participate in the normalization process and extend their cooperation to LIC during this process.
4.3 Stage 3 – Commercial Evaluation

The commercial bid has to be in the format as provided in Annexure XI (A) – Commercial Bid Details.
The commercial Bid details will need to be provided for all requirements of LIC to arrive at TCO (Total Cost
of ownership) of the solution.
The total cost to be specified by the Bidder must cover the following as detailed in Annexure XI-(A)
Commercial Bid Details. This would include;
 Design and Development Cost
 License cost for framework or Data Model
 License Cost for Database and Software
 Cost of Hardware
 Cost of Other Application and Tools
 Training Cost
 Maintenance and Support Cost for the solution for 5 years

 Cost for Additional Requirements (cost per person day)
 Net Present Value (NPV) Rule

While evaluating the tenders covering a longer period (i.e. more than one year), the quoted prices
pertaining to maintenance in future years are to be discounted to the net present value (NPV) as
appropriate for comparing the tenders on equitable basis.
The Net Present Value of the proposal is equal to the sum of the present values of all the cash
flows associated with it. NPV is to be calculated on the annual cash outflows.
 Discounting rate to be used: 9% p.a. A PV Factor table is provided for reference.

Standard software for example ‗Excel‘ can be used for the NPV computation. An indicative
template is also provided purely for facilitating the bidder. Bidders must ensure the accuracy of
the computation at their end for the calculations. The template provided is a facilitator only for
the computation and the bidder is responsible for the computation as per the guidelines.
r = 9% i.e. 0.09 i.e. the RBI - Base Rate of Public Sector Banks.
(https://rbi.org.in/rbi-sourcefiles/lendingrate/LendingRates.aspx)
 Price Variation Factor and H1 Elimination

When the number of Technically Qualified Bidders are more than Four, the technically qualified H1
bidder (Bidder with the Highest Quoted Total Bid Price at NPV) will be disqualified and eliminated
from participating in Online Reverse Auction (4.8), if his bid value as per the submitted paper
commercial bid is higher by more than 40% as compared to the average of quoted prices of all
technically qualified bidders for all items in aggregate.
The total Bid Price for this clause will be all inclusive bid prices at Net Present Value (NPV)
inclusive of all applicable taxes except VAT/GST, Services Tax and Octroi/LBT(which will be
reimbursed to the Vendor at actuals subject to production of receipt in the name of LIC).
4.4 Online Reverse Auction

After the opening of Commercial bids, technically qualified bidders who have not been eliminated
due to H1 Elimination will be required to participate in an Online Reverse Auction as follows:
a) LIC shall provide web based E-tender system for reverse auction.
b) Price quoted by the Bidders at the end of online reverse auction will be taken as the final
commercial quote for evaluation of that bidder.
c) During reverse auction, the participating vendors shall input only the total cost that they have
to offer. This amount shall be arrived at by the bidder themselves off-line by using the formula
mentioned for evaluation to outbid the earlier bid.
d) Only fixed price financial bids indicating total price for all the deliverables and services specified
in this bid document will be considered.
e) The commercial figure quoted will be an all-inclusive figure – inclusive of out of pocket
expenses, traveling, boarding, lodging, all taxes, duties, license fees, road permits and transit
insurance etc., except VAT/GST, Services Tax and Octroi/LBT. No such expenses will be
reimbursed separately.
f) Any conditional bid would be rejected.
g) The bidder shall arrange the Digital certificates (at no cost to LIC) from a Certifying Agency
notified by Comptroller of Certifying Authority (CCA) as per Information Technology Act, 2000
as amended from time to time.

h) In case, only one bidder is technically qualified, no reverse auction will take place. However, LIC
reserves right to negotiate price with the lone bidder. The prices once finalized through online
reverse auction or negotiation will be termed as the ―approved prices‖.
i) LIC will determine the Start Price and other parameters for the Reverse Auction:
i. on its own and / or
ii. Evaluating the price band information available in the commercial bids of the technically
qualified bidders based on the basis of the lowest quote received in the commercial bids.
j) Based on the Total Cost of Ownership (TCO) declared by the Bidders during the Reverse
Auction, the Bidders will be categorized as L1, L2, L3 etc. (In the ascending order, i.e. L1 being
the Bidder with the lowest TCO, followed by L2 with the next lowest score and so on.)
k) The bidder with the L1 Quote post the Online Reverse Auction and Commercial
evaluation will be declared L1 Bidder. However, if the prices discovered as a part of the
Online Reverse Auction are felt to be unrealistic for the products offered or beyond LICs
budget estimates, to give a fair chance to the bidder, LIC shall call the bidder along with
the OEM for a price negotiation. Post this only the commercial bid process will be termed
as complete.
l) The final outcome of the bidding process will be published on the LIC website.
m) The bid price shall be in Indian Rupees.
n) Errors & Rectification: Arithmetical errors will be rectified on the following basis: ―If there is a
discrepancy between the unit price and the total price that is obtained by multiplying the unit
price and quantity, the unit price shall prevail and the total price shall be corrected. If
there is a discrepancy between words and figures, the amount in words will prevail‖.
o) The bidder would need to provide all costs in Annexure XI (A)– Commercial bid details. The cost
summary from these will flow into the Summary sheet of Annexure XI (A) – Commercial bid
details.
p) In the event the Bidder has not quoted or has omitted any product or service, then it will be
deemed that the Bidder shall provide the same product and/or service at no additional cost to
LIC.
q) At the end of warranty period, the contract may be renegotiated as mutually agreed by both
parties. The Bidder shall not add any conditions / deviations in the commercial bid. Any such
conditions / deviations may make the bid liable for disqualification.
r) At this stage, the bank guarantee of the unsuccessful Bidder (s) shall be returned to their
bankers. LIC will send a letter to such Bidders inform them of the returning of bank guarantee.
The bidder with the lowest quote at the end of the reverse auction process will become the successful
bidder.
4.5 Technical Negotiations

Technical Negotiations will include a discussion of the Technical Proposal, the proposed technical
approach and methodology, work plan, and organization and staffing, and any suggestions made by the
Bidder to improve the Terms of the RFP. LIC and the Bidders will finalize the Terms of the RFP, staffing
schedule, work schedule, logistics, and reporting. These documents will then be incorporated in
the Contract as ―Description of Services‖. Special attention will be paid to clearly defining the inputs
and facilities required from LIC to ensure satisfactory implementation of the assignment. LIC shall
prepare minutes of negotiations which will be signed by LIC and the Bidder.
4.6 Availability of Professional Staff/experts

Having selected the Bidder on the basis of, among other things, an evaluation of proposed
Professional staff, Bidder will be required to assure LIC that this proposed Professional staff will actually be

available for the project implementation as per this RFP at the time of contracting. LIC will not consider
substitutions during contract negotiations unless both parties agree that undue delay in the selection
process makes such substitution unavoidable or for reasons such as death or medical incapacity. If this is
not the case and if it is established that Professional staff were offered in the proposal without confirming
their availability, the Bidder may be disqualified. Any proposed substitute shall have equivalent or better
qualifications and experience than the original candidate and any changes will require an approval from
LIC at the time of contracting.
Bidder will furnish no. of their personnel along with their qualification, certification, experience etc.
required for this project.
4.7 Award Criteria

LIC will declare a bidder who is evaluated as eligible, qualified and commercially lowest as the successful
bidder. LIC will notify the successful to enter into the contract in writing through a letter of Notification of
Award.
4.8 Request to extend Validity Period and EMD by LIC

In case the tendering process has not been completed within the stipulated period, LIC may request the
bidders to extend the validity period of the bid and EMD.
4.9 Right to Accept Any Bid and To Reject Any or All Bid(s)
LIC reserves the right to accept or reject any bid, and to annul the tendering process and reject all bids at
any time prior to award of contract, without thereby incurring any liability to the affected bidder or
bidders or any obligation to inform the affected bidder or bidders of the grounds for LIC‘s action.
4.10 Notification of Award

After Online Reverse Auction, LIC will notify the successful bidder in writing, that its proposal has been
accepted and send the Bidder the Contract Form incorporating all terms and conditions between the two
parties.The Bidder, in turn, has to confirm the acceptance for the Offer made by LIC through mail or
registered letter.
4.11 Performance Guarantee and Contracting
i. Performance Guarantee
The selected bidder will provide a Performance Bank Guarantee, within 15 days from the
Notification of award, for a value equivalent to 10% of the total Contract Value. The Bank
Guarantee should be as per the format given as Annexure V- Bank Guarantee and should be
executed by a Nationalized/ Scheduled bank acceptable to LIC and having Branches in Mumbai.
Performance Guarantee should be valid for the entire contract period and an additional 3 months
from the date of notification. The selected bidder shall be responsible for extending the validity
date and claim period of the Performance Guarantee as and when it is due on account of
extension of contract period. In case the selected bidder fails to submit performance guarantee
within the time stipulated, LIC at its discretion may cancel the notification placed on the selected
bidder without giving any notice.
LIC shall invoke the performance guarantee in case the selected Vendor fails to discharge their
contractual obligations during the period or LIC incurs any loss due to Vendor‘s negligence in
carrying out the project implementation as per the agreed terms & conditions.

ii. Contracting
The notified Bidder who submits the Performance Bank Guarantee as above will enter into the
contract for the execution of this project with LIC as per the terms and conditions of this RFP.
LIC reserves the right to incorporate standard contract provisions and the contract shall at all times
be compliant to:
o ―Contract Agreement for Selection of System Integrators/ Implementation Agencies‖
http://deity.gov.in/content/rfp-standardization-model-rfps-and-guidance-notes
o Provision of the CVC and GoI on procurements
o General Financial Rules 2005 for contract management
http://finmin.nic.in/the_ministry/dept_expenditure/gfrs/GFR2005.pdf
LIC reserves the right to incorporate standard contract provisions into any contract negotiated as a
result of any proposal submitted in response to this RFP. These provisions may include such things
as the normal day-to-day relationships with the Bidder, but may not substantially alter the
requirements of this RFP. Further, the successful Vendor is to be aware that all material submitted
in response to this RFP, as well as the RFP itself, will form a part the final contract. The selected
Vendor(s) will sign a contract with LIC to provide the items named in their responses, at the prices
listed. The Contract will be subject to review throughout its term. LIC will consider cancellation of
contract upon discovery that the selected Vendor is in violation of any portion of the Contract,
including an inability by the Vendor to provide the products, support and/or service promised in
their response.
LIC reserves the right to cancel this RFP, to make a partial award, or to make no award if it
determines that such action is in the best interest of the LIC.
I. LIC reserves the right at the time of award of contract and during the term of the contract to
vary the quantity of services and goods specified in the RFP without any change in unit prices
or other terms and conditions.
II. LIC, at all times, reserve the right to modify, include or exclude procurement of products under
consideration in this RFP if it is to LIC's advantage to do so.
III. LIC reserves the right to shift/divert the equipment to other locations from where they are. In
such cases, the warranty / AMC shall continue to be in force at the new location and the
supplier has to continue to extend his support for the same at the new location.
iii. Signing of Contract

Post submission of Performance Guarantee by the successful bidder, LIC shall enter into a contract with
the successful bidder, incorporating all clauses of RFP, all clarifications and the response to the RFP of the
successful bidder.
5. Eligibility Criteria
The response to the Minimum Eligibility Criteria (MEC) should contain detailed responses to all the
conditions mentioned below.
Minimum Eligibility Criteria

(Bidder to satisfy all the criteria in his individual capacity unless mentioned otherwise.):-
1. The Bidder must be a Company registered in India, registered under the Companies Act 1956, which
has been operating in India for the last three years. Copy of Certificate of Incorporation, Company
Registration and Sales Tax Registration along with the PAN details of the Prime Bidder should be attached.
2. The bidder should have a minimum turnover of Rs.200 crores per annum during last two financial

years in India. Audited Financial statements for the financial years 2015-2016 and 2016-17 Or CA
certificate for the year for which Audited Financial Statements are not available should be attached as
proof.
3. The bidder should have made a net profit or should have positive net-worth in any two of the last
three financial years 2014-15,2015-16,2016-17. . Audited Financial statements for the relevant
financial years Or CA certificate for the year for which Audited Financial Statements are not available
should be attached as proof.
4. The bidder should have at least one of the following accreditations / certifications which is valid as on
date of submission of this RFP. ISO 9001:2008, SEI CMMI Level 5, BS 7799. Copy of certifications
should be attached as proof.
5. A vendor blacklisted by any PSUs or Government departments for corrupt or fraudulent practice or
non-delivery, non-performance in last 5 years is debarred from participating in the bid process. Bidder
is required to submit a self declaration signed by Authorized signatory stating the status related to
such blacklisting, past or present, of the Bidder.
6. The bidder‘s proposal should not have any branded application and which is listed in leading Third
Party Analysts Reports. The proposed solution should not be a Commercial Off The Shelf (COTS)
product. COTS – Any pre-built software which is purchased leased or licensed to the customer. The
bidder should submit a self-declaration signed by Authorized Signatory as a proof for it.
7. A. a) Bidder and /or its partner(s) should have experience in end-to-end solution design and
development on a JEE Platform and
b) Bidder and /or its partner(s) should have experience in providing service in BFSI institutions
worldwide on at least one of the following solutions in the last 5 years ;
 Core Insurance Solution encompassing minimum;
 Underwriting,
 Policy Administration,
 Claims Management,
 Product Configuration
The experience as above across the client is also acceptable provided that a minimum of 2
functionalities as above should have been designed, developed and implemented for a client
and likewise the rest of the functionalities have been covered with other/another clients(s)
OR
B. Insurance Portal for customer or agent encompassing minimum;

 Online Sale of Policy,
 Policy Servicing,
 Customer/Agent Portfolio Management.
The experience as above across the client is also acceptable provided that a minimum of 2
functionalities as above should have been designed, developed and implemented for a client and
likewise the rest of the functionalities have been covered with other/another clients(s)The bidder
must have skilled staff, Organization, Financial resources and an Installed base adequate to ensure
ongoing ability to deliver and support the proposed end-to-end solution, proposed, throughout the
duration of the project, including the ability to provide timely response and service to LIC over the
period of the contract. Bidder should provide documentary evidence of skilled staff on rolls. (as per
annexure—XIV ). Bidder should submit relevant credential letter or Purchase order with
Organizations and confirmation of having executed the PO to satisfaction.
8. Bidder should have experience of implementing a Core Insurance Solution for Group Life for at least

one Insurance Company worldwide in the last 5 years.
For each of the references, the Core Insurance Solution should encompasses at least ;
 Underwriting,
 Policy Administration,
 Claims Management,
 Product Configuration
And
The referenced core insurance solution should support at least the following group products
 Group Term Insurance

 Group Annuity
9. Power of Attorney if any duly authorizing the authorized signatory to act on behalf of the Bidder for
all legal and financial matters pertaining to this Bid and the resulting contract if any. Documentary
evidence should be submitted along with power of Attorney proving that the authority delegating the
powers has the necessary powers to do so from the bidders company.
Note: Please submit the responses to eligibility criteria point wise with documentary evidence
against each criterion.
6. Terms and Conditions

The Terms & Conditions mentioned in this section will be applicable to the Selected Bidder (Vendor) with
whom LIC contracts as an outcome of this RFP process.
6.1 Contract Period
The contract tenure is 76 months, from the date of signing the contract unless otherwise mutually agreed
upon between LIC and the selected Bidder, broken down as follows:
a) 16 months implementation
b) 60 months warranty period post go-live.
If go-live sign-off is later than 16 months from date of contract, the contract period automatically stands
extended by period of delay equal to (date of go-live – date of contract + 16 months).
6.2 Option to extend Contract Period
i. The Contract Period may be extended by LIC for 2 terms of 12 months each, on the terms and
conditions mutually agreeable by both the parties, by giving written 30 days‘ notice to the Vendor
ii. Any extension exercised in accordance with the contract takes effect from the end of the then
current Contract Period
6.3 Services Location
Obligation to provide Services: The vendor offers to provide the Services to LIC at Mumbai and / or at such
locations as may be required by LIC.
6.4 General obligations of the parties
The Selected vendor will, at all times:
i. Act reasonably in performing its obligations;
ii. Diligently perform their respective obligations‘ and
iii. Work together with LIC in a collaborative manner.
iv. The Vendor will supply the Services:
a. With due skill and care and to the best of the Vendor 's knowledge and experience;
b. In accordance with relevant Indian industry standards, good industry practice and
guidelines or where none apply, relevant international industry standards, leading practice

and guidelines;
c. Using the Specified Personnel;
d. In accordance with all applicable Laws;
e. In accordance with any reasonable directions in relation to the Services given by LIC from
time to time;
f. So as to meet the Milestones and other project plan requirements, and where no
Milestones or project plan requirements are specified, promptly and without delay;
v. The Vendor will be responsible for managing the activities of its personnel and will hold itself
responsible for any misdemeanours
vi. The Vendor will be obliged to work closely with LIC‘s staff, act within its own authority and abide by
directives issued by LIC and undertake implementation activities.
vii. The Vendor will abide by the job safety measures prevalent in India and will free LIC from all
demands or responsibilities arising from accidents or loss of life the cause of which is the Vendor‘s
negligence. The Vendor will pay all indemnities arising from such incidents and will not hold LIC
responsible or obligated.
6.4.1 Warranties
The Vendor will have to represent and warrant that:
a. It has the right to enter into the Contract resulting this RFP;
b. It has all rights, title, licenses, interests and property necessary to lawfully perform the Services;
c. Its Personnel, including its Specified Personnel, have the necessary experience, skill, knowledge
and competence to perform the Services;
d. The Services will be complete, accurate and free from material faults; and
e. It will not, nor will it suffer or permit any third party under its direction or control to negligently
introduce into LIC's systems or any Deliverables any Harmful Code.
6.4.2 Access to LIC's premises
LIC will provide the Vendor necessary access, to its premises as and when required and is deemed
reasonable.
6.4.3 Conduct at LIC's premises
The selected Bidder will, if using or accessing LIC's premises or facilities, comply with all reasonable
directions and procedures relating to occupational health and safety and security in operation at those
premises or facilities whether specifically drawn to the attention of the Vendor or as might reasonably
be inferred from the circumstances.
6.4.4 Subcontracting
Though partnering for certain areas in the scope of work is allowed under this contract, the Vendor will
not be allowed to subcontract any portions of the scope of this RFP to any other party.
6.4.5 Assignments
The vendor will not be allowed to assign, in whole or in parts, its obligations under the Contract, to any
other entity.
6.5 Documentation
6.5.1 Provision of Documentation

The Vendor will provide LIC the comprehensive and complete documentation of and as specified in the
Scope of Work in the format and at the times specified in the Scope of Work.
6.5.2 Documentation requirements

The documentation must at the time of delivery:

a. Be current and accurate;
b. Adequately explain key terms and symbols; and
c. Be in English.
6.6 Varying the Services
6.6.1 Variations proposed by LIC

LIC reserves the right to initiate any change in the scope of contract. Any change in the general scope
will be informed to the vendor in writing. If LIC wants to vary the Services:
a. LIC will request the Vendor in writing setting out the proposed variations;
b. within 15days after receiving LIC's request or within another period mutually agreed, the
Vendor must respond in writing to LIC specifying what impact those variations will have on:
i. the Service Charges; the Services or Deliverables, including any particular Deliverable;
ii. the Vendor's ability to perform its obligations under current Contract (including its ability
tomeet Milestones) and with respect to the change of scope proposed;
c. Within 15days after receiving the Vendor‘s response, or within another period mutually agreed,
LIC will give the Vendor a written notice accepting or rejecting the response.
6.6.2 Effective date of variation

Any variation in the service w i l l take effect from the date on which the parties execute a Change
Order. In such a case, the Contract will be amended to give effect to the Change Order.
6.6.3 Change Order

If any such change causes an increase or decrease in the cost of, or the time required for, the vendor‘s
performance of any provisions under the Contract, an equitable adjustment shall be made in the
Contract Price or delivery schedule, or both, and the Contract shall accordingly be amended. Any
claims by the vendor for adjustment under this clause will be asserted within fifteen (15) days from the
date of the vendor‘s receipt of LIC‘s change order.
It should be understood that payment under this clause will be made only if Change orders are
exercised and approved by LIC and delivered by the Vendor.
6.6.4 Change Requests

The following would constitute a Change request
a. Any work which has not been specifically mentioned in the scope of work of the RFP, the
annexure and the pre-bid queries
b. Any changes in the deliverables post approval by LIC.
In such a case, the additional effort estimated by the bidder and its costs would be discussed and
finalized in discussions with the Bidder. The basis of this cost would be as quoted by the bidder in the
Annexure XI (A)-Commercial Bid.
It should be understood that payment under this clause will be made only if Change requests are
exercised and approved by LIC and delivered by the Vendor.
6.6.5 Contract Amendments

No variation in or modification of the terms of the contract shall be made except by written
amendment signed by both LIC and the vendor.
Any changes in law, taxes and policies shall be governed through the provision of clause 6.14.

6.7 Co-operation with Personnel and entities interacting with LIC
The Vendor, will, in the performance of the Services:
a. Fully co-operate with LIC's Personnel and any other entity interacting with LIC; and
b. Use its best efforts to coordinate its activities so as to support and facilitate, in LIC's best interests,
the timely and efficient completion of all work and other activities to be performed for LIC by any
person.
6.8 Monitoring progress
6.8.1 Progress meetings

Regular review meeting will be held between vendor and LIC to discuss any issues in relation to the
provision of the Services. The frequency of such progress meeting will be weekly during the
implementation phase and monthly thereafter unless any other frequency is agreed to by LIC in
writing.
6.8.2 Reporting
The Vendor must provide LIC with reports in accordance with the Scope of Work.
6.9 Performance assessment
6.9.1 Assessment of Services

Each element of the Services is subject to assessment by LIC against the relevant Performance Criteria.
6.9.2 Notice of non-compliant Services

a. If LIC considers that all or part of the Services does not meet the specifications, LIC will notify
the Vendor within seven Business Days of assessing the Services against the specifications.
b. LIC will include reasons for the Services not meeting the specifications in the notice given under
clause a.
6.9.3 Rectification of non-compliant Services

If LIC notifies the Vendor that all or part of the Services does not meet the Performance Criteria, the
Vendor will:
a. Take all necessary steps to ensure that the Services are promptly corrected;
b. Give notice to LIC when the Services have been corrected; and
c. Allow LIC to repeat the assessment of all or part of the Services against the specifications,
within five Business Days after the date of the notice or such other time as agreed mutually in
writing.
6.10 . Personnel
6.10.1 Use of Specified Personnel

a. The Vendor will provide the Services or any part of the Services to which their particular
experience relates, with the active involvement of, and using the skill of the Specified
Personnel
b. Ensure that each of the Specified Personnel is aware of and complies with the Vendor's
obligations in providing the Services.

6.10.2 If the Specified Personnel are not available
Where one or more of the Specified Personnel is or will become unable or unwilling to be involved
in providing the Services, the Vendor will notify LIC immediately. The Vendor will:
a. If requested by LIC, provide a replacement person of suitable ability and qualifications,
having appropriate technical qualifications and experience equivalent or more than the
replaced person, at no additional charge and at the earliest opportunity; and
b. Obtain LIC's written consent prior to appointing any such replacement person.
6.10.3 LIC may request replacement of Personnel

LIC may at any time request the Vendor to remove from work any of the Specified Personnel. The
Vendor must promptly arrange for the removal of such Personnel and their replacement in
accordance with the process outlined above in 6.10.2.
6.11 . Intellectual Property Rights
6.11.1 Third Party Material

The Vendor must have ownership or obtain all necessary copyright and other Intellectual Property
Right permissions before making any Third Party Material available as Auxiliary Material for the
purpose of performance of services under this RFP and resulting contract.
6.11.2 LIC ownership of Intellectual Property Rights in Contract Material

a. All Intellectual Property Rights in the Contract Material shall vest in LIC;
b. to the extent that LIC needs to use any of the Auxiliary Material provided by the Vendor to
receive the full benefit of the Services (including the Contract Material), the Vendor grants
to, or must obtain for, a world-wide, royalty free, perpetual, non-exclusive license to use,
reproduce, adapt, modify and communicate that Auxiliary Material.
6.11.3 Rights in Vendor’s Pre-existing IPR

There shall be no assignment or transfer of any Vendor‘s pre-existing IPRs (including any
amendments, modifications or enhancements thereto) pursuant to this Agreement.
6.11.4 IPR Warranty

The Vendor will warrant that:
a. The Warranted Materials and LIC's use of those Warranted Materials, will not infringe the
Intellectual Property Rights of any person; and
b. It has the necessary rights to vest the Intellectual Property Rights and grant the licenses as
provided in this clause 5.11.
6.11.5 Remedy for breach of warranty

If someone claims, or LIC reasonably believes that someone is likely to claim, that all or part of the
Warranted Materials infringe their Intellectual Property Rights, the Vendor will, in addition to the
indemnity under clause5.15 and to any other rights that LIC may have against it, promptly, at the
Vendor's expense:
a. Use its best efforts to secure the rights for LIC to continue to use the affected Warranted
Materials free of any claim or liability for infringement; or
b. Replace or modify the affected Warranted Materials so that the Warranted Materials or the
use of them does not infringe the Intellectual Property Rights of any other person without
any degradation of the performance or quality of the affected Warranted Materials.
c. The Vendor will indemnify LIC against all third-party claims of infringement of patent,
Intellectual Property Rights, IPR, trademark, copy right or industrial design rights arising

from use of the Vendor‘s Solution or any part thereof throughout the Offices of LIC,
including but not limited to the legal actions by any third party against LIC.
6.11.6 Patent Rights and other litigation costs

In the event of any claim asserted by a third party of infringement of copyright, patent, trademark
or industrial design rights arising from the use of the systems or any parts thereof with relation to
the contract deliverables, in LIC‘s country, the Vendor will act expeditiously to extinguish such
claim. If the Vendor fails to comply and LIC is required to pay compensation to a third party
resulting from such infringement, the Vendor will be responsible for the compensation including all
expenses (court costs and lawyer fees). LIC will give notice to the Vendor of such claim, if it is made,
without delay as when received.
6.12 Moral Rights
6.12.1 Obtaining consents

To the extent permitted by applicable Laws and for the benefit of LIC, the Vendor will:
i. give, where the Vendor is an individual; and
ii. Use its best endeavours to ensure that each of the Personnel used by the Vendor in the
production or creation of the Contract Material gives, genuine consent in writing, in a form
acceptable to LIC, to the use of the Contract Material for the Specified Acts, even if such use
would otherwise be an infringement of their Moral Rights.
6.12.2 Specified Acts

In this clause, Specified Acts means:
i. Falsely attributing the authorship of any Contract Material, or any content in the Contract
Material (including without limitation literary, dramatic, artistic works and cinematograph
films within the meaningoftheCopyrightAct,1957);
ii. Materially altering the style, format, colours, content or layout of the Contract Material and
dealing in any way with the altered Contract Material;
iii. Reproducing, communicating, adapting, publishing or exhibiting any Contract Material; and
iv. Adding any additional content or information to the Contract Material.
6.13 Payment Terms
6.13.1 Payment Schedule
S.No Cost of Item Payment Conditions

1 Hardware : Installation, configuration Hardware:
and commissioning of H/W a. 70% of the Hardware cost or 25% of total project
cost whichever is minimum will be paid on successful
delivery of the Systems in LIC.
b. 20% of the Hardware cost or 7% of total project
cost whichever is minimum will be paid on successful
sign-off of pilot by LIC.
c. Balance payment of the Hardware cost will be
paid upon the completion of 30 days after successful
"go-live".

2 Software : Installation, configuration a. 70% of the Software cost or 18% of the total
and commissioning of S/W project cost whichever is minimum will be paid upon
the receipt of Licence and media.
b. 20% of the Software cost or 5% of the total
project cost whichever is minimum will be paid on
successful sign-off of pilot by LIC.
c. Balance payment of the Software cost will be
paid upon the completion of 30 days after successful
"go-live"
3 Application Development, Application Development, Customization and
Customization and Implementation Implementation
a) 10% on completion of Business Requirement
gathering.
b) 10% on successful UAT
c) 10% on successful pilot run
d) 30% on successful implementation on “go-live”
subject to migration of data of all units and 100%
implementation of all functionalities of unit, ZO & CO
e) 6% at end of each year for 5 years after "go-live".
f) 10%, six months after warranty period.
4 Application Support and Hardware Monthly payment will be done in the first week of following
System Maintenance month upon submission of invoice and all requirements.
5 Training Payment on satisfactory performance
6 Technical Support for existing Monthly Payment on satisfactory
application support/ post Performance as per the exact utilization at the finalized man
implementation Development / day rates.
Customization and new requirements
7 ATS for Software Will be paid automatically in advance upon submission of
invoice and requirements by the bidder.
ATS on software will be paid annually in advance.
Delivery of UAT- Successful completion of System Integration testing, Regression testing and User
Acceptance testing by the Bidder and acceptance and sign-off on all executed test
Acceptance of UAT- Successful completion of System Integration testing, Regression Testing and User
Acceptance testing by the Bidder and acceptance and sign-off on all executed test scenarios by LIC
Successful Completion of Pilot- Successful completion of Pilot at the P&GS Unit/Office by the Bidder and
acceptance and sign-off by LIC
GO Live- successful movement into production environment and operation of application as per scope of
the RFP duly verified and signed off by LIC
6.13.2 Payment Terms & Conditions

a) No advance payment or interest will be made by LIC.
b) Payments will be made only on vendor completing all activities for that Phase as per the
agreed project plan and phase completion sign off for the same from LIC.

c) LIC reserves the right to temporarily withhold payments and impose penalty, if it is not
satisfied with progress made during that period or if there is a delay in activity timelines.
d) LIC shall make payments in Indian Rupee (INR) on receipt of invoices, after deduction of
penalties and applicable taxes at source from the agreed price to the selected Vendor.
e) The payment will be released by the P&GS department, Central Office. Payment related
objections, if raised after 3 months from the date of release of payment, will not be
entertained. Such objection must be raised in writing.
f) The vendor is also duty bound to report to LIC about any short recovery of taxes, cess, etc.
at source. Such reporting to LIC should also happen at the earliest. In case, vendor fails to
inform LIC about such short recoveries of tax, cess, etc. at source, LIC will have the right to
recover all short recoveries of tax, related cess and surcharges, interest and penalties as per
the demand note of Income Tax dept. or any other govt. body or regulator.
g) The vendor shall be solely responsible to make payment to OEM Vendors.
h) Payment towards any additional/Change orders for onsite will be due only if any change
orders is exercised & approved by LIC and delivered by the Vendor.
i) The Amount against Penalties, if any, will be recoverable from the Payment OR from any
other payment due to the Vendor OR from performance Bank Guarantee.
Following documents will be required to be submitted for release of payment:

a) Invoice printed on Vendor‘s own letterhead (with reference of Purchase order, description of
goods/ services delivered, quantity, unit price, total amount)
b) Proof of payment of Octroi / Entry Tax (wherever applicable)
c) Sign-off from LIC for completion of each phase of each activity
d) No other payment of any kind will be made other than the Contract Value.
e) Expenses: It may be noted that LIC will not pay any amount/ expenses/ charges/ fees/
travelling expense/ boarding expenses/ lodging expenses/ conveyance expenses/ out of
pocket expenses other than the ―Agreed Contract Value‖.
6.13.3 Obligation to pay

LIC will pay to the Vendor for the deliverables & Services, subject to:
a. Subject to the clause 6.13;and
b. The deliverables & Services meeting the SLA.
6.13.4 Liquidated Damages

The delivery & installation of the entire system consisting of software and services will be as per
the Schedule of Service Level Agreement mentioned in this RFP; failure to do so will attract
penalties. If, at any time during the performance of the Contract, the Vendor should encounter
conditions impeding timely delivery of the systems and/or Services, the Vendor shall promptly
notify LIC in writing of the fact of the delay, it is likely duration and its cause(s). As soon as
practicable, after receipt of the Vendor‘s notice, LIC shall evaluate the situation and may, at
its discretion, extend the Vendor‘s time for performance, with or without liquidated
damages, in which case the extension shall be ratified by the parties by amendment of the
Contract.
There shall be a penalty for non-adherence to the time schedule as per section 9 – Project
Timelines. The total penalty will be capped at 10% of the total contract value.
Penalties: All activities as per agreed timelines: 0.5% of the total contract value of the related
Phase per week of delay or part thereof for the first 8 weeks. Thereafter, the rate of penalty will be
1% of the total contract value of the related Phase per week or part thereof.

If the penalties are beyond 10% of the total contract value then LIC may rescind the Contract and
shall be free to get it done from some other source at the risk and costs of the Bidder. The Bidder
may be debarred for applying in future assignments.
The Vendor will ensure that all services and systems perform without defect or interruption as per
the SLAs specified in the RFP. The vendor will make all-out effort to ensure that all systems
perform without defect or interruption.
6.13.5 Incorrect invoices, under/over payment

If an invoice is found to have been rendered incorrectly after payment, any underpayment or over
payment will be recoverable by or from the Vendor, as the case may be, and, without limiting
recourse to other available means, may be offset against any amount subsequently due by LIC to
the Vendor under the contract.
6.13.6 Due date for payment

LIC will make payment of a correctly rendered invoice on undisputed work within 30 working days
after receiving the invoice.
6.13.7 Expenses
The Vendor will not be entitled to charge LIC for any other fees, charges or expenses (including
travel and accommodation, document reproduction, transportation and courier charges, and
telecommunications charges, etc.) in addition to the Charges mentioned in the Payment Schedule.
LIC is under no obligation to pay any amount in excess of the Charges mentioned in the Payment
Schedule.
6.14 Prices and Taxes
6.14.1 Prices
Prices payable to the vendor will be fixed as derived from the Final L1 quote after Online Reverse
Auction and will be exclusive of VAT/GST, Services Taxes and Octroi/LBT. Prices once fixed will be
valid throughout the entire contract period.
Escalation of Costs: The vendor will in no circumstance be entitled to any escalation of costs or
price of any material / items supplied or services tendered under the contract. The prices will not
be subject to variation on any account.
6.14.2 Taxes and Duties

Vendors will be entirely responsible for all taxes, duties, license fees, road permits, and transit
insurance etc., except VAT/GST, Services Taxes and Octroi/LBT incurred until delivery of the
contracted services to LIC.
VAT/GST and Octroi/LBT, if any, will be reimbursed only at actual on production of appropriate
receipts within 15 days of such tax payment to the respective authorities by the vendor.
6.14.3 Deduction of Taxes at Source

LIC will deduct taxes from the amounts due and payable to the Vendor wherever applicable. LIC
will provide Vendor with the statement of any taxes deducted by LIC on payments under the
contract. The Vendor agrees to reimburse and hold LIC harmless from any deficiency including
penalties and interest relating to taxes including recovery of any tax retrospectively that are its

responsibility under this clause. For purposes of the contract, taxes shall include taxes incurred on
transactions between LIC and the Vendor.
6.15 Indemnity
6.15.1 Subject to Clause 6.15.2 below, Vendor will undertake to indemnify LIC from and against all losses on
account of bodily injury, death or damage to tangible personal property arising in favour of any
person, corporation or other entity (including LIC) attributable to the Vendor's negligence or wilful
default in performance or non-performance under the contract. If LIC promptly notifies Vendor in
writing of a third party claim against LIC that any Service provided by the Vendor infringes a copyright,
trade secret or Indian patents of any third party, Vendor will defend such claim at its own expense and
will pay any costs or damages that may be finally awarded against LIC. Vendor will not indemnify LIC,
however, if the claim of infringement is caused by:
i. LIC‘s misuse or modification of the service;
ii. LIC‘s failure to use corrections or enhancements made available by the Vendor;
iii. LIC‘s use of the Service in combination with any product or information not owned or
developed by Vendor;
iv. LIC‘s distribution, marketing or use for the benefit of third parties of the Service; or
v. Information, direction, specification or materials provided by LIC or any third party contracted
to it.
If any Service is or likely to be held to be infringing, Vendor will at its expense and option either
i. Procure the right for LIC to continue using it,
ii. Replace it with a non-infringing equivalent,
iii. Modify it to make it non-infringing.
The foregoing remedies constitute LIC‘s sole and exclusive remedies and Vendor‘s entire liability with
respect to infringement.
6.15.2 The indemnities set out in Clause 6.15.1 shall be subject to the following conditions:
i. LIC as promptly as practicable informs the Vendor in writing of the claim or proceedings
and provides all relevant evidence, documentary or otherwise;
ii. LIC will, at the cost of the Vendor, give the Vendor all reasonable assistance in the Defence
of such claim including reasonable access to all relevant information, documentation and
personnel provided that LIC may, at its sole cost and expense, reasonably participate,
through its attorneys or otherwise, in such Defence;
iii. If the Vendor does not assume full control over the Defence of a claim as provided in this
Article, the Vendor may participate in such Defence at its sole cost and expense, and LIC will
have the right to defend the claim in such manner as it may deem appropriate, and the
cost and expense of LIC will be included in losses to be indemnified by the vendor;
iv. LIC shall not prejudice, pay or accept any proceedings or claim, or compromise any
proceedings or claim, without the written consent of the Vendor;
v. All settlements of claims subject to indemnification under this Clause will:
a. Be entered into only with the consent of LIC, which consent will not be unreasonably
withheld and include an unconditional release to the Indemnified Party from the
claimant or plaintiff for all liability in respect of such claim; and
b. include any appropriate confidentiality agreement prohibiting disclosure of the terms
of such settlement;
vi. LIC will account to the Vendor for all awards, settlements, damages and costs (if any)
finally awarded in favour of LIC which are to be paid to it in connection with any such claim
or proceedings;

vii. LIC will take steps that the Vendor may reasonably require to mitigate or reduce its loss
as a result of such a claim or proceedings;
viii. in the event that the Vendor is obligated to indemnify LIC pursuant to this Article, the
Vendor will, upon payment of such Indemnity in full, be subrogated to all rights and
defences of LIC with respect to the claims to which such indemnification relates; and
ix. if a Party makes a claim under the indemnity set out under Clause 6.15.1 above in respect of
any particular Loss or Losses, then that Party shall not be entitled to make any further claim
in respect of that Loss or Losses (including any claim for damages).
6.16 Liability
Except in cases of criminal negligence or wilful misconduct and in the case of infringement of patent, IPR,
trademark, copy right or industrial design rights arising from use of the Solution or any part thereof in any
of the services supplied by the vendor and used/consumed by LIC, the Supplier/vendor shall not be liable to
LIC, whether in contract tort or otherwise, for any indirect or consequential loss of damage, loss of use, loss
of production, or loss of profits or interest costs, provided that this exclusion shall not apply to any
obligation of the supplier/vendor to pay liquidated damages to LIC and the aggregate liability of the
Supplier/vendor to LIC, whether under the Contract, in tort or otherwise, shall not exceed the total Contract
Price provided that this limitation shall not apply to the cost of repairing or replacing defective equipment.
6.17 Insurance
6.17.1 Obligation to maintain insurance

In connection with the provision of the Services, the Vendor must have and maintain for the
Contract Period, valid and enforceable insurance policies for: public liability; either professional
indemnity or errors and omissions; workers' compensation as required by law.
6.18 Confidentiality and privacy
6.18.1 Confidential Information not to be disclosed

Information relating to the examination, clarification, comparison and evaluation of the proposals
submitted shall not be disclosed to any of the responding firms or their representatives or to any
other persons not officially concerned with such process until the selection process is over. The
undue use by any responding firm of confidential information related to the process may result in
rejection of its proposal.
The Bidder including but not limited to its personnel, its partners, agents and associates is bound
by the conditions of the Non-Disclosure Agreement submitted by the Bidder in response to the
RFP as per Annexure IV - NDA.
During the execution of the project, the successful bidder will have access to confidential
information of LIC such as servers, applications, network design, and architecture etc. The bidder
shall use the same degree of care to maintain the confidentiality of the information as if the
information is their own and shall not disclose at any point of time to any other person/third party
the information so received. The bidder will:
a) Use the information only for serving LIC‘s interest and restrict disclosure of information
solely to their employees on a need to know basis in order to accomplish the purpose
stated in this RFP,
b) Advise each such employee, before he or she receives access to information, of the
obligation of bidder under this agreement and require such employees to honour these

obligations. The Bidder will treat as confidential all data and information about LIC,
obtained in the execution of his responsibilities, in strict confidence and will not reveal
such information to any other party without the prior written approval of LIC.
Violation of NDA will lead to forfeiture of performance Bank guarantee and additionally will lead to
legal action and blacklisting.
6.18.2 Exceptions to obligations

The obligations on the parties under this clause 6.18 will not be taken to have been breached to the
extent that Confidential Information:
a) is disclosed by a party to its advisers or employees solely in order to comply with
obligations, or to exercise rights, under the contract;
b) is disclosed to a party's internal management personnel, solely to enable effective
management or auditing of Contract related activities;
c) is disclosed by LIC;
d) is disclosed by LIC, in response to a request by a House or a Committee of the Parliament/
Assembly;
e) is authorized or required by law, including under the contract, under a license or otherwise,
to be disclosed; or
f) Is in the public domain otherwise than due to a breach of this clause 5.18.
g) lawfully known by the Recipient at the time of disclosure without any obligation to keep the
same confidential
h) independently developed by the Recipient without use or reference to such Confidential
Information
6.18.3 Obligations on disclosure

Where a party discloses Confidential Information to another person:
a. Pursuant to clauses a) and b) of 6.18.2 above, the disclosing party must: notify the receiving
person that the information is Confidential Information; and not provide the information
unless the receiving person agrees to keep the information confidential; or
b. Pursuant to clauses c) and d) of 6.18.2 above, the disclosing party must notify the receiving
party that the information is Confidential Information.
6.18.4 Additional confidential information

a. The parties may agree in writing after the date of the contract that certain additional
information is to constitute Confidential Information for the purposes of the contract.
b. Where the parties agree in writing after the date of the contract that certain additional
information is to constitute Confidential Information for the purposes of the Contract, this
documentation is incorporated into, and becomes part of the contract, on the date by which
both parties have signed this documentation.
6.18.5 Period of confidentiality

The obligations under this clause 6.18continue, notwithstanding the expiry or termination of the
contract:
a. Any item of information, for the contract period and one year thereafter; and
b. In relation to any information which the parties agree in writing after the date of the
contract is to constitute Confidential Information for the purposes of the contract, for the
period agreed by the parties in writing in respect of that information

6.19 Protection of personal information
6.19.1 Application of the clause

This clause applies only where the Vendor deals with personal information and for the purpose of,
providing Services under the contract.
6.19.2 Obligations
The Vendor acknowledges that it will use or disclose personal information obtained during the
course of providing Services under the contract, only for the purposes of the contract.
6.20 Conflict of interest
6.20.1 Warranty that there is no conflict of interest

The Vendor will warrant that, to the best of its knowledge after making diligent inquiry, at the date
of signing the contract no conflict of interest exists or is likely to arise in the performance of its
obligations under the contract.
a. A Vendor will not have a conflict of interest that may affect the Services
b. LIC requires that the Vendor provides professional, objective, and impartial services and at
all times hold LIC‘s interests‘ paramount, avoid conflicts with other assignments or its own
interests, and act without any consideration for future work. The Vendor shall not accept or
engage in any assignment that would be in conflict with its prior or current obligations to
LIC, or that may place it in a position of not being able to carry out the assignment in the
best interests of LIC.
c. Without limiting the generality of the above, a Vendor shall be deemed to have a Conflict of
Interest, if there is a conflict among this and other assignments of the Vendor (including its
personnel and other members, if any) and any subsidiaries or entities controlled by the
Vendor or having common controlling shareholders. The duties of the Vendor will depend
on the circumstances of each case. While providing services to LIC for this particular
assignment, the Vendor shall not take up any assignment that by its nature will result in
conflict with the present assignment;
6.20.2 Notification of a conflict of interest

The Vendor shall make a disclosure to LIC as soon as any potential conflict comes to their notice
but in no case later than 7 (seven) days and any breach of this obligation of disclosure shall be
construed as Conflict of Interest. LIC shall, upon being notified by the Vendor under this Clause,
decide whether it wishes to terminate this Services or otherwise, and convey its decision to the
Vendor within a period not exceeding 15 (fifteen) days.
6.21 Security
6.21.1 Compliance with LIC requirements / Regulatory Compliance

The Vendor will ensure that its Personnel comply with:
i. All relevant security and other requirements specified in LIC‘s Information Security Policy, if
the same has been made aware by LIC;
ii. Any other security procedures or requirements notified, in writing, by LIC to the Vendor. The
Vendor must comply with such a security procedure or requirement, from the date specified
in the notice, or if none is specified, within five Business Days of receipt of the notice.
iii. Any regulatory guidelines about IT security issued by Regulator.

6.21.2 Security clearance
i. LIC may, from time to time, notify the Vendor of the level of security or access clearance
applicable to the Vendor's Personnel, and the date from which, or the period during which,
that clearance will be effective and the Vendor must comply with and ensure its Personnel
act in accordance with that notice.
ii. LIC is responsible for all costs associated with obtaining security clearances.
6.21.3 Removal of LIC Data

The Vendor will not, and will ensure that its Personnel do not:
i. Remove LIC Data or allow LIC Data to be removed from LIC's premises;
or
ii. Take LIC Data or allow LIC Data to be taken outside of offices premises of LIC.
6.22 Books and records
6.22.1 Vendor to keep books and records

The Vendor will:
i. Keep adequate books and records, in accordance with Indian Accounting Standards, in
sufficient details to enable the amounts payable by LIC under the contract to be determined;
ii. Retain books and records as mandated by law and the same would be made available to LIC
as and when required .
6.22.2 Costs
The Vendor will bear its own costs of complying with the clause 6.22.
6.23 Force Majeure or Unforeseen events
6.23.1 Occurrence of unforeseen event

LIC or the vendor is excused from performing its obligations under the Contract to the extent it is
prevented by circumstances beyond its reasonable control (other than lack of funds for any reason
or any strike, lockout and labour disputes in respect of the Vendor only), including but not limited
to acts of God, natural disasters, acts of war, riots and strikes outside that party's organisation.
6.23.2 Notice of unforeseen event

When the circumstances described in the contract arise or are reasonably perceived by the affected
party as an imminent possibility, the affected party will give notice of those circumstances to the
other party as soon as possible but within 7 days, identifying the effect they will have on its
performance. An Affected Party will make all reasonable efforts to minimize the effects of such
circumstances on the performance of the contract.
6.23.3 Termination
If non-performance or diminished performance by the Affected Party due to the circumstances
under the contract continues for a period of more than30 consecutive days, the other party may
terminate the Contract immediately by giving the Affected Party written notice.
6.23.4 Consequences of termination

If the Contract is terminated:
a. Each party will bear its own costs and neither party will incur further liability to the other;
b. Where the Vendor is the Affected Party, it will be entitled to payment for Services Accepted

or work performed prior to the date of intervention of the circumstances described in the
contract.
6.24 Dispute Resolution
6.24.1 Reconciliation Process

If a dispute arises in relation to the conduct of the Contract (Dispute), a party must comply with this
clause before starting arbitration or court proceedings (except proceedings for urgent interlocutory
relief). After a party has sought or obtained any urgent interlocutory relief that party must follow
this clause 6.24.
6.24.2 Notification
A party claiming a Dispute has arisen must give the other parties to the Dispute notice setting out
details of the Dispute.
6.24.3 Parties to resolve Dispute

During the 30 days after a notice is given under clause 5.24.2(or longer period if the parties to the
Dispute agree in writing), each party to the Dispute must use its reasonable efforts through a
meeting of Senior Executive (or their nominees) to resolve the Dispute. If the parties cannot
resolve the Dispute within that period then, the parties agree that any dispute or differences
under or in connection with agreement or any breach thereof, which cannot be settled by mutual
negotiation between the parties shall be finally settled by arbitration conducted in accordance
with Arbitration and Conciliation Act, 1996 or any modifications, Rules, or enactments thereof.
Each party shall appoint its Arbitrator and the two respective arbitrators appointed by each party
shall appoint presiding arbitrator to adjudicate the dispute, difference, or claim between the
parties. The arbitration proceedings shall be conducted in English Language and the venue of the
arbitration shall be Mumbai. The parties agree that the award passed by the arbitrators shall be
final and binding upon the parties. The parties hereby further agree to submit themselves to the
exclusive jurisdiction of the courts in Mumbai. The cost of arbitration shall be borne by the parties
in such manner, as the arbitrator shall decide in the arbitral award.
6.24.4 Confidentiality
Any information or documents disclosed by a party under this clause 6.24:
a. Must be kept confidential; and
b. May only be used to attempt to resolve the Dispute.
6.24.5 Costs
Each party to a Dispute must pay its own costs of complying with this clause 6.24. The parties to
the Dispute must equally pay the costs of the arbitrator.
6.24.6 Termination of process

A party to a Dispute may terminate the dispute resolution process by giving notice to the other
party after it has complied with the provision of this clause 6.24, clauses 6.24.4 and 6.24.5 survive
termination of the dispute resolution process.
6.24.7 Breach of this clause

If a party to a Dispute breaches provision of this clause 6.24, the other party does not have to
comply with those clauses in relation to the Dispute.

6.25 Termination
6.25.1 Right to terminate

If Vendor fails to comply with the clause 6.9 for Performance Assessment and, if any part of the
service does not meet the specifications on three or more occasions, LIC may (in addition to its
other remedies) terminate the Contract immediately by giving the Vendor written notice of 15 days.
6.25.2 Termination and reduction for convenience

a. LIC may, at any time, by a prior written notice of 30days, terminate the contractor and / or
reduce the scope of the Services.
b. On receipt of a notice of termination or reduction the Vendor must stop work as specified in
the notice; take all available steps to minimize loss resulting from that termination and to
protect LIC Material and Contract Material; and continue work on any part of the Services
not affected by the notice.
c. If the contract is terminated, LIC is liable only for payments in respect of services rendered
before the effective date of termination.
d. If the scope of the Services is reduced, LIC's liability to pay the Service Charges or to provide
LIC Material abates in accordance with the reduction in the Services.
e. LIC is not liable to pay compensation under clause ('C') supra , if the amount , in addtion to
any amounts paid or due, or becoming due, to the Vendor under the contract, exceed the
total Service Charges payable under the Contract. The Vendor is not entitled to
compensation for loss of prospective profits.
f. The systems that are complete and ready for delivery within 30 days after the Vendor‘s
receipt of notice of termination shall be accepted by LIC as per the Contract.For the
remaining systems, LIC may choose to have any portion completed and delivered at the
Contract terms and prices, and /or to cancel the remainder and pay to the Vendor an
agreed amount for partially completed systems and for materials and parts previously
procured by the Vendor.
6.25.3 Termination by LIC for default

Notwithstanding what has been stated in clause 6.4 of this Agreement LIC may, without
prejudice to any other remedy for breach of contract, by written notice of default sent to the
Vendor, terminate the Contract in whole or part if the Vendor fails to deliver any or all of the
systems within the period(s) specified in Scope of Work of the RFP, or if the Vendor fails to perform
any other obligation(s) under the Contract.
In the event of LIC terminating the Contract in whole or in part, LIC may procure, upon such
terms and in such manner as it deems appropriate, Systems or Services similar to those
undelivered, and the Vendor shall be liable to LIC for any excess costs for such similar systems or
Services. However, the Vendor shall continue the performance of the Contract to the extent not
terminated.
6.25.4 Termination for Insolvency

LIC may at anytime terminate the Contract by giving written notice to the Vendor, if the Vendor
becomes bankrupt or otherwise insolvent. In this event, the termination will be without
compensation to the Vendor, provided that such termination will not prejudice or affect any right
of action or remedy, which has accrued or will accrue thereafter to LIC.
In case of termination under this clause LIC is liable to pay for all the services performed by the
Vendor till the effective date of termination.

6.25.5 After termination
On termination of the contract the Vendor must:
a. Stop work on the Services;
b. deal with LIC Material as directed by LIC; and
c. return all LIC's Confidential Information to LIC
6.25.6 Survival
The following clauses survive the termination and expiry of the contract:
a) Clause 6.11(IntellectualProperty Rights);
b) Clause 6.15(Indemnity);
c) Clause 6.17(Insurance);
d) Clause 6.18 (Confidentiality and privacy);
e) Clause 6.19 (Protection of personal information);
f) Clause 6.21 (Security);
g) Clause 6.25.9 (Knowledge transfer)
6.25.7 Severability
If for any reason whatever, any provision of this Agreement is or becomes invalid, illegal or
unenforceable or is declared void by any court of competent jurisdiction or any other
instrumentality to be invalid, illegal or unenforceable, the validity, legality or enforceability of the
remaining provisions shall not be affected in any manner, and the Parties shall negotiate in good
faith with a view to agreeing to one or more provisions which may be substituted for such invalid,
unenforceable or illegal provisions, as nearly as is practicable to such invalid, illegal or
unenforceable provision. Failure to agree upon any such provisions shall not be subject to the
dispute resolution procedure set forth under this Agreement or otherwise.
6.25.8 Termination does not affect accrued rights

Termination of the contract does not affect any accrued rights or remedies of a party.
6.25.9 Knowledge transfer

Subject to any qualification or provision to the contrary in the Scope of Work, the Vendor must
provide the following assistance to LIC on termination or expiration of the contract:
a. Transferring or providing access to LIC to all information stored by whatever means held by
the Vendor or under the control of the Vendor in connection with the contract; and
b. Making Specified Personnel and Vendor Personnel available for discussions with LIC as may
be required. The time, length and subject of these discussions will be at thesole discretion of
LIC, provided that any matter discussed is not considered to reveal any ‗Commercial-in-
Confidence' information of the Vendor.
c. The Parties agree that duration of Knowledge transfer shall in no event exceed for more
than 90 days.
6.26 Notices and other communications

Any notice given by one party to the other pursuant to the contract shall be sent to other party in writing
or by email.
6.26.1 Service of notices

A Notice must be:
a) In writing, in English and signed by a person duly authorized by the sender; and
b) Hand delivered or sent by prepaid post to the recipient's address for Notices, as varied by

any Notice given by the recipient to the sender.
LIC’s Address for notices:
Executive Director (P&GS)
Life Insurance Corporation of India,
Central Office, P&GS Department,
5th Floor, East Wing, "Yogakshema",
Nariman Point, Mumbai – 400021
6.26.2 Effective on receipt

A Notice given in accordance with the contract takes effect when it is taken to be received (or at a
later time specified in it), and is taken to be received:
i. If hand delivered, on delivery;
ii. If sent by prepaid post, on the second Business Day after the date of posting (or on the
seventh Business Day after the date of posting if posted to or from a place outside India);
6.27 Miscellaneous
6.27.1 Varying the Contract

The contract may be varied only in writing signed by each party.
6.27.2 Approvals and consents

Except where the contract expressly states otherwise, a party may, in its discretion, give
conditionally or unconditionally or with hold any approval or consent under the contract.
6.27.3 Assignment and novation

A party may only assign its rights or novate its rights and obligations under the contract with the
prior written consent of the other party.
6.27.4 Further action

Each party must do, at its own expense, everything reasonably necessary (including executing
documents) to give full effect to the contract and any transaction contemplated by it.
6.27.5 Waiver
Waiver of any provision of or right under the contract:
a. must be in writing signed by the party entitled to the benefit of that provision or right; and
b. is effective only to the extent set out in any written waiver.
6.27.6 Relationship
a. The parties must not represent themselves, and must ensure that their officers, employees,
and agents do not represent themselves, as being an officer, employee, partner or agent of
the other party, or as otherwise able to bind or represent the other party.
b. The contract does not create a relationship of employment, agency or partnership between
the parties.
6.27.7 Announcements
a. The Vendor must, before making a public announcement in connection with the contract or
any transaction contemplated by it, obtain LIC's written agreement to the announcement.
b. If the Vendor is required by law or a regulatory body to make a public announcement in
connection with the contract or any transaction contemplated by the contract the Vendor
must, to the extent practicable, first consult with and take into account the reasonable

requirements of LIC.
6.27.8 Governing law and jurisdiction

The contract shall be governed by and construed in accordance with the laws of India, without
giving effect to conflict of law rules. Each party irrevocably and unconditionally submits to the non-
exclusive jurisdiction of the courts of the jurisdiction specified in Item 27 of the Contract Details
and hence, any legal dispute will come under the jurisdiction of Mumbai High Court only.
6.28 Performance Guarantee

The proceeds of the performance guarantee shall be payable to LIC as compensation for any loss resulting
from the Vendor‘s failure to complete its obligations under the Contract.
The performance guarantee will be discharged by LIC and returned to the issuing Bank with intimation to
the Vendor not later than 60 days following the date of completion of the Vendor‘s performance
obligations including any warranty obligations under the contract.
In the event of any contract amendment the Vendor shall within seven days of receipt of such
amendment furnish the amendment to the Performance guarantee rendering the same valid for the
duration of the Contract as amended for 60 days after the completion of performance obligations
including warranty obligations.
In the event of any replacement of defective software systems during the warranty period, the warranty for
the replaced material shall be extended to a further period of 1 year and the Performance Bank Guarantee
for proportionate value shall be extended by 60 days over and above the extended warranty period.
6.29 Inspection and Tests

The inspection of the systems shall be carried out to check whether the solution software is in conformity
with the technical specifications, quantity attached to the contract. The Vendor will dispatch the systems
to the designated office of LIC, after internal inspection and testing.
6.29.1 System Acceptance & Solution Acceptance

System Acceptance Test will be done Onsite. The System Acceptance Test will be conducted as per
process defined in below and as per Annexure VII and VIII. If the results of the onsite UAT are not
acceptable to LIC, it will be the vendors‘ responsibility to improve the software, implementation and
configuration to meet the expected performance at no cost to LIC.
Entire Solution Acceptance Tests for Go-Live is a must and the Entire system will be tested:
 for each and every functionality,
 Whether the solution is capable to cater all the requirements mentioned in the RFP.
The acceptance-testing period will be mutually agreed upon between LIC and the Proponent, but
must cover no less than thirty (30) trouble free calendar days. If there are any software failures or
mis-configurations that occur during this period, the Vendor must take all necessary actions to
correct the failure, and then the thirty (30) day trouble free period will restart. More than3 failures
of the same type may be deemed a total failure, and may terminate the acceptance test which may
lead to cancellation of the contract. The acceptance test period will be part of the implementation
plan. The Vendor must agree that failure on the part of the Vendor to correct a functional or
technical deficiency in the Vendor‘s Solution shall be deemed to be a total failure and LIC, at its

option, may terminate the acceptance test and cancel the contract.
6.29.2 Acceptance Testing and sign off

Entire system will be tested for all functionalities of the system, whether the system is capable
enough to cater all the requirements as per Annexure VII and Annexure VIII. After installation of
the software, all the features specified in the scope of work/ expected deliverables would be
tested and acceptance obtained from LIC.
The Solution acceptance test will check for SLA‘s mentioned in this RFP, in case if the solution is not
able to meet the SLA‘s, vendor is supposed to provide additional/improved software,
implementation and configuration so as to meet the defined SLA‘s
6.29.3 Warranty
a. Bidder shall provide comprehensive onsite warranty for complete solution,
systems/hardware/software components and deliverables for all the environments
including, but not limited to, Development, SIT, UAT, Test and Training, Staging and
Quality Assurance, primary production set up, near DR and remote DR set-ups. Warranty
will remain available for all production systems/components up to a period of 5 years
from GO LIVE date. The warranty shall begin on date of delivery in respect of licensed
software and hardware components and on date of completion of go-live phase in
respect of development and customization and maintenance of application.During the
warranty period, Bidder will ensure that proper ATS/AMC is taken from the concerning
OEM and kept renewed from time to time. Further, the Bidder should provide AMC/ATS
for the products and services as the case may be, as per Annexure XI(A), post the period
for warranty,
b. All Hardware shall come with five years onsite comprehensive warranty.
c. The Vendor warrants that the systems supplied under the contract, at all times , are new,
unused, of the most recent or current models and they incorporate all recent
improvements in design and materials unless provided otherwise in the contract. The
vendor further warrants that all system supplied under the contracts have no defect
arising from design materials or workmanship or from any act of omission of the vendor
that may develop under normal use of the supplied systems in the conditions prevailing
in the country of final destination.
d. LIC shall promptly notify the Vendor in writing of any claims arising under this warranty.
e. Period or correction of defects/issues during the warranty period shall be as per SLA which
will include holidays.
6.29.4 IPv6 Compliance

The proposed solution covering all Software, Operating System and other related software must be
IPv6 compliant and must have capability to secure IPv6 networks and also secure against IPv6
networks. Compliance in this regard should be submitted along with the technical specifications in
the technical bid documents. The solution complete in all respect should be either IPV6 Compliant
or should be IPV6 supported.
6.30 Business Continuity
Vendor and OEM should have business continuity plan. In case the vendor does not have ready business
continuity plan, he should undertake to implement business continuity plan within 6 months from the date
of contract.(Proof & Level - ISO 22301)

6.31 Support to be provided by LIC
LIC will provide the following support, post the award of the contract to the successful bidder:
a. Provide the information on current IT infrastructure already available
b. The aspirations / expectation of the system which is planned to be procured
c. Identify the project Champion to ensure complete involvement from start to the finish of
the project.
d. Setup meeting with stakeholders in the project.
e. Make available any earlier reports or information available with LIC that is relevant.
7. Executive Summary of Scope of Work

LIC intends to Modernie its Pension and Group Insurance application in order to enhance support for the
achievement of LIC‘s business objectives in striving to offer innovative products and superior service in the
pension and group insurance space.
LIC‘s insurance business is supported by two home grown Core Insurance Applications, namely eFEAP and
P&GS. eFEAP supports conventional life insurance business which involves the traditional and non-
traditional individual life, micro insurance and health insurance products. P&GS supports LIC‘s Group Life,
Pension and Superannuation business, offered to organizations and professional groups. The application
also supports the Social Security Insurance Schemes like AamAaadmiBimaYojna /PMJJBY, mandated by the
Central and State Governments‘ of India. P&GS on an average issues 21,000 new policies and adds
1,35,00,000 lives every year.
LIC intends to custom develop a robust and highly scalable Pension and Group Insurance System with the
required infrastructure (software and hardware) to support all the business, technical and functional
requirements related to LIC‘s group insurance business.
Based on an evaluation of the options and a selection of the ‗best fit‘, LIC aims to replace its current P&GS
Insurance system to meet the present and future business requirements.
The developed application should provide a competitive edge to LIC, especially with respect to offering
innovative insurance products with a quick time to market, increased operational efficiency, better
operational controls, superior service delivery, better risk management, higher client retention, highest
levels of regulatory and internal policy compliance, highest levels of claims management and superior and
timely management of information to support quick decision making at all levels of LIC.
7.1 Details of the Current Technology

Current P&GS solution developed and maintained in-house is the insurance application for LIC‘s Pension
and Group Schemes catering to Quote, Issuance, Servicing, Billing and Financial Management.
P&GS solution is based on a distributed architecture built on legacy technology and the application
logic has been written in Power Builder and Oracle and has been deployed at 74 sites of LIC today. The
application has limited capabilities to integrate with other enterprise wide applications in the
corporation and the database is not designed to handle centralisation. We are bringing as virtual
machines (VMs) 48 units spread across Zones at 8 Zonal Head Quarters. The remaining 28 units are
being provided with independent servers. These locations are mostly Metro cities and state capitals.

A high level overview of the current P&GS application is as below:
i. All the P&GS units run on in-house developed and maintained software
ii. The current system is based on client server architecture
iii. Front end application is developed in Power Builder 7.0 on Windows
iv. Apart from Oracle procedures, business logic is built in Power Builder.
v. Database is Oracle 10g on RHEL 4 Update 2
vi. The front end calls procedures stored in the Oracle Database
vii. Each P&GS unit/ satellite office maintains a data base at the Unit Level
viii. Total of 74 servers with Individual Databases are being maintained at the 69 P&GS units and 5
satellite offices
ix. Total size of the database for all the 74 units is 1600+ GB
x. The current system has a total of 17 scheme specific and general purpose modules
The current application consists predominantly of product based modules. The new products are
launched through reuse of Power Builder Modules and Oracle Stored Procedures. System related
changes are loaded individually into standalone systems at each of the 74 units which have helped
P&GS customize products at the Unit Level.
xi. The user access is based on Role, Module and Policy Number
xii. All the objects are created on one schema ―PNGS‖
xiii. Programs are stored in around 100 Power Builder libraries
xiv. There are 800+ tables, including temporary tables and 500+ oracle procedures/ packages/functions
xv. The Power Builder Object List consists of 600+ windows, 2500+ data windows, 200+ functions and
100+ menus
xvi. Certain selected tables from the units are brought into the server at the Central Office using Oracle
materialized view. This data is used for the portals provided on P&GS intranet site. This data is also
used for showing policy/customer details on the internet
xvii. Referrals for quotation management are done using QTrak (portal to manage referrals)
xviii. Lead management and Reinsurance are managed through a custom built portal.
xix. The application is integrated with the Enterprises Portal and the LIC data warehouse (CADW)

P&GS is the insurance application for LIC‘s Pension and Group Schemes catering to Quote, Issuance,
Servicing, Billing and Financial Management.
P&GS solution is based on a distributed architecture built on legacy technology and the application logic
has been written in Power Builder and Oracle and has been deployed at 74 sites of LIC today. The
application has limited capabilities to integrate with other enterprise wide applications in the corporation
and the database is not designed to handle centralisation.
*** Office service/ OS is not included in the present P&GS modules for implementation
Supported Products:
Product details as provided in Annexure VII- Functional Requirements, Product List.
7.2 High Level Scope of Work

The bidder will be responsible for:
1) Supply, installation and maintenance of hardware

2) Supply, installation, customization and maintenance of operating system, database and other
applications
3) Design, Development, Maintenance and Support of the new centralized P&GS application.
The new application should be a browser based, single integrated business solution, covering all the
mentioned functionality and flexibility with a centralized database, required to carry out the group insurance
and social security business in the current and foreseeable future.
The application architecture should be open, multi-tiered with a modular object oriented component based
design.
It should support multiple organizational entities, locations and adhere to regulatory compliance and
jurisdictions.
The new application should be able to interface with various systems in LIC like eFeap systems (Core
Application for conventional life insurance business of LIC), Biometric Authentication System, Enterprise Data
warehousing, Document Management System, Portal, Intranet, Middleware-Tibco, Customer
Communication Management System, Investment Management System, Mobile Platform, Active Directory,
Email and SMS Server etc.
The Bidder‘s scope is defined in this document which encompasses the Forms/Annexure and subsequent
Addenda & Corrigenda.

A. The contract tenure will be for 76 months, 16 months implementation and 60 months
maintenance from the date of signing, from the date of signing the contract unless otherwise
mutually agreed upon between LIC and the selected Bidder. Please refer to section 6.1 & 6.2 for
more details in this regard.
B. The selected bidder, after the execution of formal Contract, shall be responsible for the following
indicative activities and deliverables:
a. Project Planning and Management
b. Requirement Analysis and Management
i. Current State Study

ii. Requirement Gathering
iii. Business Requirement Documentation
iv. System Study and Preparation of:

 System Requirement Specification Document and
 Functional Requirement Specification Document

c. System Architecture Design, System Interface and Integration Design, Data Structure Design,
Detailed Application Design
d. Application Configuration Development Implementation and Management

e. Software–Web-App Servers, Database, etc.
f. Hardware – Sizing, Supply, Installation, Configuration, Application deployment and System
Maintenance (excludes End User Clint Machines)

g. Network and Bandwidth sizing
h. Data Migration
i. Integration with systems of LIC and external systems

j. Application and Data Security – Assessment and Management
k. Data Backup and Archival

l. Quality Assurance
m. Bespoke Development of P&GS Application for Group Insurance and Social Security business
n. Setup of all required environment such as Production, Disaster Recovery, Test, Development,
Staging/Quality Assurance and Training.
o. Pilot Launch
p. Performance Benchmarking and Unit Testing

q. System Integration Testing
r. User Acceptance Testing support
s. Provision of Automation Test Scripts

t. Infrastructure readiness assessment
u. Performance testing and testing tools

v. Roll Out
w. Go Live and Post Go Live handholding
x. Operation & Maintenance support

y. Business Continuity, Disaster Recovery Planning and Reverse Transition

z. Training and Knowledge Transfer
aa. Project Documentation
C. The selected bidder will be required to design, develop size, install, implement, customize, test,
commission, integrate and maintain the end to end turn-key ―Pension & Group Insurance System‖
comprising of, but not limited to, the following key modules/functions listed below (also depicted in
the figure given below):
a. New Business
b. Quotation Management
c. Customer Management
d. Policy and Annual Renewal Date Servicing
e. Claims Management
f. Accounting and Billing
g. Reinsurance
h. Investments
i. Annuity Servicing
j. Valuation
k. Regulatory and MIS Reporting

l. Document Management
m. Product Configuration
n. Channel/Agency Management
o. Workflow support

p. Maker Checker Management
q. Cash Management and General Ledger Accounting
D. The selected bidder will be required to deploy the new P&GS application including interfaces,
adequately sized and scalable Hardware, Software, Applications, Tools, and Utilities, related services as
per specifications, terms and conditions and scope which are defined in the RFP.
E. The selected bidder will be required to design, develop the application on the Web, App, DB servers as
procured by LIC as a part of its standardization initiative.
F. Selected bidder will prepare detailed System Requirement Specification, Functional Requirement
Specification, Gap assessment documents, High and Low Level Design Documents, Test Plan, Test
cases, Training and handover materials etc. as a part of the scope of work.
G. Conduct data migration activities and data cleansing activities. The bidder will have to study the
current application, its data structure and schemas and plan for migration.
H. The selected bidder will be responsible to load and test the data in the new application.
I. The selected bidder will Design, develop, implement and maintain a comprehensive co-existence
strategy.
J. Build interfaces/data transfer mechanisms and integrate the new application with LIC‘s existing and
future solutions as mentioned in Annexure IX.
K. Rollout the new application across LIC and provide handholding support across the implemented
locations.
L. Impart Training and Knowledge Management to LIC‘s management and personnel i.e., End users, Train
the Trainers, Technical Teams and hand hold the users post migration for a defined time period
M. Size, design, procure, implement, maintain and manage the required hardware and related software
components required as per the scope
N. Provide complete hand-over along with detailed documentation at the end/termination of the contract
period.
The selected Bidder shall have the single-point responsibility/liability to ensure the fulfilment of all
obligations of the Bidder under the contract.
After completing all the Requirement Studies at LIC, the selected bidder is expected to carry out the
development activity out of its own premises preferably at Mumbai. The selected bidder will ensure that the
development environment at its premises is secured enough and there are no violations of Data Security
and Non-Disclosure Agreement. The selected bidder will be responsible for all the necessary arrangements
at its development premises including connectivity, cabling, seating, access control, physical security and
computing infrastructure to be specified in the RFP response. The bidder will have to account for all licenses
as may be required for the initial development activities.

The responsibility for the scope articulated in the responses will be with the Bidder, which will form part of
the final legal contract. The Bidder will be totally responsible for delivering contracted services end to end
and will be a single point of contact.
8. Detailed Scope of Work

Based on the contents of the RFP, the Bidder shall be required to independently arrive at a solution, which is
suitable for LIC, after taking into consideration the effort estimated for implementation of the same and the
resource and the equipment requirements. The Bidder shall be required to perform all such tasks, render
requisite services and make available such resources as may be required for the successful completion of
the entire project at no additional cost to LIC.
The following is an indicative list of activities that bidder is required to undertake as a part of its scope of
work. Bidder must detail, as part of the response to this RFP, any additional area that it deems necessary to
adhere to the scope of work.
The bidder is free to adopt any methodology which is robust and comprehensive in its approach for design
and development of the P&GS application and allows adherence to the timelines as laid down in the RFP.
The approach with due justification for feasibility must be detailed in the Bidders‘ response to this RFP.
8.1 Project Planning

The Bidder is required to design and implement a comprehensive and effective project planning and
management methodology together with efficient and reliable tools.
Project planning exercise shall commence with the start of the project, however, project management
exercise shall commence at the start of the project and shall continue till the Operation and Maintenance
Phase of the project.
The project planning activity must make provisions to ensure that the project progresses according to the
Project Plan that is approved. The project management activity spans the duration of the project and the
Project Plan is a primary control element of the project.
The bidder is required to specify and describe the different phases and activities of the project. The bidder
should provide a quality implementation plan covering all aspects of the project. The plan shall clearly
specify the start and end dates of each of the project phases specifying key milestones allowing visibility of
project progress.
The bidder is required to describe the proposed project structure identifying all project individuals including
project director, project manager, business analysts, software developers, QA engineers, hardware / network
engineers, administrators, Change Management experts, and others.
The bidder is required to have an effective project management system in place and it is necessary for the
bidder to use a Project Management Information System (PMIS) to monitor the Project Progress. The bidder
shall address a minimum of the following using PMIS:
I. Create an organized set of activities for the project.

II. Coordinate and collaborate with various stakeholders including the Departments concerned.
III. Establish and measure resource assignments and responsibilities.
IV. Construct a project plan schedule including milestones.
V. Measure project deadlines, budget figures, and performance objectives.
VI. Communicate the project plan to stakeholders with meaningful reports.
VII. Provide facility for detecting problems and inconsistencies in the plan

During the project implementation the bidder shall report to LIC on following items:
I. Results accomplished during the period;

II. Cumulative deviations to date from schedule of progress on milestones as specified in this RFP
read with the agreed and finalized Project Plan;
III. Corrective actions to be taken to return to planned schedule of progress;
IV. Proposed revision to planned schedule provided such revision is necessitated by reasons
beyond the control of the bidder;
V. Other issues and outstanding problems, and actions proposed to be taken;
VI. Interventions which the bidder expects to be made by LIC and / or actions to be taken by LIC
before the next reporting period. Progress reports would be prepared by bidder on a weekly
basis. These reports will have to be shared with LIC
VII. Project quality Assurance
VIII. Change Control mechanism
IX. Project Management activities
X. Issue Management to help identify and track the issues that need attention and resolution from
LIC.
XI. Scope Management to manage the scope and changes through a formal management and
approval process.
XII. Risk Management to identify and manage the risks that can hinder the project
The bidder will closely work with LIC. LIC will assist in acceptance of the report/ document and suggest the
action plan. The Project plan prepared by the bidder at the initial stage of the project shall be reviewed by
the LIC Project Management Team and due approval on the same will have to be assessed by the Bidder.
The bidder shall update and maintain the Project Plan throughout the duration of the engagement. All
changes are to be reviewed and approved by LIC.
The Bidder‘s plans for the execution of the project must contain, but not limited to, the following;
1. Project Management Plan: Plan that describes how project objectives shall be met and
provides a road map for executing the project to meet the requirements of LIC. This plan will
encompass the entire project contract lifecycle from start up through acceptance and
maintenance and operations
2. Project Work Plan: This plan documents the project vision and goals, items that are in-scope
and out-of-scope and their prioritization, dependencies between the scope items, and risks
associated with the inclusion and removal of items from scope. The plan also defines the
process used to modify project scope
3. Project Organisation and Staffing Plan: The Bidder is responsible for proposing the potential
roles and responsibilities for staffing for the different project activities
4. Communication Matrix: The plan must detail the varying levels and needs of the project‘s
stakeholders for information regarding the project, status, accomplishments, impact on
stakeholders, etc. Issues must be logged and reported bi-weekly and the plan must detail the
escalation mechanisms for issue resolution
5. Performance Measurement: Performance Measurement considerations must reflect the
overall control of the project in reaching its intermediate objectives and its ultimate goal.
Measures must be established that adequately provide one of the three essential elements of
any control process:
a) Objectives
b) measurement against these objectives and;
c) an effective correction capability when the measurements indicate that there is deviation
from the timely accomplishment of the objectives

6. Quality Management Plan must describe the Bidder‘s internal quality processes
7. Issue and Risk Management Plan: The Risk Management Plan documents the Bidder‘s
approach to administering the risk management process to include identification, evaluation
methodology, treatment, monitoring, and evaluation of the risk management process
8. Risk register: Risk Register is a required part of the Issue and Risk Management Plan, and
should be populated with all known risks to the extent that they are recognized at any stage of
the project
9. Quality Management Plan: The plan must have the following;
a) Defined quality assurance responsibilities
b) Detailed definition of all deliverables by phase and associated acceptance criteria
c) Defined deliverable review process
d) Regularly scheduled reviews of key project phases and milestones
e) Identified target performance areas and proposed methods of measurement; establish

the baseline metrics for the agreed upon goal areas; and assist LIC in determining the
level of achievement of the performance goals
10. Training Plan: Training Plan is required to augment the Staff Management Plan and to provide
essential information on the training of application users. Training that is needed to be done to
close any skill gap and to bring personnel to an appropriate competency level to perform their
duties on a day to day basis.
11. Release Plan: Release Plan details the events that need to take place for various system
releases including launch phase and releases during the operations and maintenance phase
12. Closure: Upon completion of the Implementation, Warranty and Maintenance and Operations
phase, the Vendor will perform all activities necessary to close out the Project. This includes:
a) Performing formal contract closure
b) Updating process documentation and transferring this to LIC
c) Transitioning any relevant process and/or solution responsibilities over to LIC, or to

another contracted vendor. This includes updating and transferring all solution
documentation, performing formal contract closure, and transitioning any relevant
solution responsibilities
An initial Project Plan must be submitted with the Proposal. At a minimum, on a weekly basis, the Bidder
must submit updates to the Project Plan. Updates to the Project Plan will be made as needed with a formal
review on a quarterly basis and duly approved by LIC. Updates to the Project Plan and/or Schedule must be
made on and posted to a centralized location to be defined by LIC. When updates are made the Bidder
must post a summary or explanation of changes for historical purposes.
8.2 Requirement Analysis and Management

The purpose of system requirements analysis is to transform the defined requirements into a set of desired
system technical requirements that will guide the design of the application to meet the needs of LIC. The
specific intended use of the application to be developed must be analysed to specify system requirements.
The Bidder will have to do a detailed requirement gathering and build on the baseline functional
requirements as provided in Annexure VII. LIC will have a team of business users, subject matter experts
formed to provide the details on the current and the expected functionality of the P&GS application. Bidder
will have to interact by way of interviews, requirement workshops, questionnaires etc. with the team to
gather business and technical requirements. The detailed System Requirement Document will have to be

provided at the end of the requirement analysis cycle to LIC. The documented system requirement
specification must include:
• Business, organizational and user requirements
• Functional capability specifications, including performance, environmental conditions under
which the software component is to perform
• Interfaces between software components within the enterprise
• Interfaces with external systems representing communications to and from the software
systems of other organizations
• Safety specifications, including those related to methods of operation and maintenance,
environmental influences, and stakeholder risk Design constraints and qualification
requirements
• Security specifications, including those related to compromise of sensitive information
• Communication specifications, such as web service interface specifications and standards-based
communication content specifications
• User operation and execution requirements
• User maintenance requirements
The Bidder must evaluate the software requirements according to the criteria listed below:
• Bi-directional traceability (to and from) of system requirements to/from design and to/from test
scripts
• Testability, including testing of both user-based scenarios and standards-based transaction
testing with other software systems
• Feasibility of software design
• Feasibility of operation and maintenance
The system requirement document will be reviewed by LIC and any feedback as received should be
immediately incorporated in the document and should be resubmitted for review by the Bidder. Upon
satisfaction of the completeness of the document, the document shall be signed off by LIC.
The following are an indicative list of deliverables;

1) Requirement Documentation
2) Requirement Validation and Traceability
3) Requirement Change Control Plan
1) Requirement Documentation
The Bidder will conduct a detailed systems requirements study and provide a Functional Requirements
Specification (―FRS‖) document relating to the functionalities as required supporting the various
products and services to be offered by LIC. As part of the preparation of FRS the selected bidder shall be
responsible for preparing and submitting detailed requirement specification documents as per IEEE or
equivalent standards which meets all the Business, Functional and Technical requirements of LIC.
• The Bidder shall develop and provide LIC the FRS document, including at a minimum:
i. A comprehensive list of functional specifications to implement the functionality detailed
in Annexure VII – Functional Requirements
ii. Recommendations on how to close specific gaps that require changes to LIC‘s business
processes
iii. Standard operating procedure proposed for aligning the application to meet the
Business requirements

iv. Aligning the application with the business requirements to enable centralisation of
desired business process, eliminate redundant and duplicate processes, increase
operational efficiency and improve customer service
v. Business rules definition
vi. Reporting capabilities
vii. User profiles and security role permissions
viii. System functionality traceable back to the Requirements Traceability Matrix
ix. System overview diagrams illustrating which Solution components provide what
functionality, linking back to the functional capabilities
x. Data Integration/Interface Design Document – Bidder will gather data specifications
from internal/external hosted systems, servers, applications that will be used in the
target architecture
xi. Use Cases – a list of workflows mapped to business processes mapped to System
requirements
xii. User Interface screens for the application
xiii. Identification of functions or user roles that initiate workflow, receives the workflow, and
any processes that occur as a result of the workflow
xiv. List of assumptions made during the design as well as recommended next steps and
required actions that shall be confirmed by LIC before the development
• The Bidder shall perform the detailed assessment of the functional requirements and MIS
requirements and prepare the FRS document, incorporating list of additional features that shall
result in further improvement in the overall application performance for consideration of LIC.
• The Bidder shall provide the FRS to LIC for review and comment and any comments or
suggestions of LIC should be incorporated therein
• LIC will identify the functional heads for each process who would be responsible for the review,
comments and sign – off of the FRS.
• The bidder is required to update the FRS as and when any enhancements / modifications are
made to the application till the duration of the Contract
• The FRS will deem to be completed when signed – off by LIC.
• As and when required LIC will share information on process and other relevant documentation
to assist the Bidder in understanding LIC‘s existing business and operations
• As part of the requirements gathering the bidder is expected to segregate each functional
requirement into the three following categories:
a. Requirements that are unique to LIC
b. Requirements that will address the existing pain points of LIC
c. Requirements that are leading practices in the industry that are being incorporated in
this project by the bidder
2) Requirement Validation and Traceability:

The requirements validation and traceability should document the Bidder‘s approach to ensuring that all
requirements are captured and met. The purpose of this task is to describe the Bidder‘s approach to
review, analyse, and validate requirements throughout the life of the project.
o Requirements Traceability Matrix: The bidder shall ensure that developed application is fully
compliant with the requirements and specifications provided in the RFP such as functional, non-
functional and technical requirements. For ensuring this, the bidder shall prepare a
Requirements Traceability Matrix on the basis of Functional Requirements Specifications (FRS),
Non Functional Requirements Specification, and Technical Requirements provided by LIC

(updated, expanded and fine-tuned by the bidder). The matrix should provide requirements
traceability across SRS/FRS, Use Case, and Test case.
3) Requirement Change Control Plan:

The Requirement Change Control Plan describes the Bidder‘s approach to requirement change control,
including the tracking of requirements, software used to track all requirements, reporting of
requirements, assignment, resolution, and escalation of requirement change control requests.
8.3 Application Design and Architecture

The application designed and developed for LIC must follow industry best practices and standards. In order
to achieve the high level of stability and robustness of the application, the system development life cycle
must be carried out using the industry standard best practices and adopting the security constraints for
access and control rights.
The insurance application and its supporting applications should have a complete end to end centralized
architecture covering the following architectural domains in detail;
 End to end solution architecture

 End to end Information architecture (with enterprise data model) that explains how data
integration and interoperability is achieved between software components/modules
 End to end Integration architecture (using SOA best practices with supporting integration
patterns and standards used)
 End to end Infrastructure architecture namely, hardware, network, storage, etc
 End to end Security architecture
 The architectures should be documented using a commercial architecture modelling tool
supporting UML (e.g. enterprise architect)
The Bidder shall develop a System Architecture, which details the SOA model-driven framework being used
across all the domains (e.g., services, trust and security, infrastructure) that enables the development of
service-oriented models to facilitate the interaction and communication of technologies within and outside
the enterprise.
The System Architecture Design shall define and document:
 A conceptual architecture that will produce a design to fulfill LIC‘s functional expectations
 Allocation of all requirements for the application to its software components and further refined
to facilitate detailed design
 A logical architecture that identifies the SOA layers
 Physical architecture that defines the various services of the system and how they shall be
implemented. This shall include details around the integration layers, using Web Services, and
various other integration technologies
 Details of security management
 The High Availability and Disaster Recovery approach and plan describing how the system will
enable LIC to provide information to its customers in the event of a disaster
 How the architecture design features ensure that the system can scale as needed for future
transaction volumes, storage requirements
 How the System will ensure performance based on expected data and user loading, target
source systems and target platforms and how the system would address expected performance
during peak transaction volumes and key critical business activities
 How the System will meet capacity requirements

8.3.1 Use of Framework
LIC would want to leverage use of a framework to expedite the development of the P&GS application.
LIC requires the application to be developed on an open, flexible and tried and tested framework
which supports all the P&GS business requirements of LIC. The framework must be modular such that
it allows for functionalities to be broken into independent interchangeable modules. The framework
must also allow the maximum reuse of code libraries, support programs such that new modules and
functionalities are built with the minimum of effort. The framework should be capable of supporting
the common core processes and functions of group and annuity business. The system at no point
should be a constraint to the functioning of business and should provide flexibility to adopt and evolve
as per the demands of the Pension and Group Insurance business.
8.4 System Interface and Integration

System integration activity is to integrate the system components including software components, hardware
components, internal/ external software as necessary to produce a complete application that will satisfy the
system design expressed as requirements in this RFP.
The integration design must address all integration tasks, and must include the following:
 The general approach to be used to integrate the system in an iterative and progressive manner
 Description of the integration of hardware and software
 Description of the various components, software (internal and external) to be integrated
 Description of the tools and processes to be used
 Quality assurance activities to ensure adherence to design and development requirements
The developed application should be able to interface/integrate with the Support applications which
would be proposed by the Bidder in order to fulfil the requirements of this tender. It is the expectation of
LIC that the integration architecture is based around the Service Oriented Architecture best practices and
is not a point to point technology specific integration solution.
• The Bidder will be responsible for identifying the detailed interface requirements for integrating
the application to the systems as mentioned in Annexure IX – List of Interfaces, and for all
other functionalities as mentioned in this RFP.
• The interface architecture should be clearly defined. The integration architecture should include
the types of interfaces supported; the standards used and should comply with LIC‘s architecture
principles.
• The Bidder will present the interface requirements for review.
• Any suggestions from LIC will have to be included by the Bidder.
• When developing the interfaces, the Bidder should ensure the requirements of data format,
frequency of data transfer, quality checks and validations before data transfer and priorities for
data transfer are identified and addressed.
• The Bidder must ensure that all interfaces are automated with no manual intervention.
• All 3rd party and Support applications proposed by the Bidders to meet the functional
requirements should provide an on-line interface with the application as developed
• The Bidder will ensure and incorporate all necessary security and control features within the
application, operating system, database, etc. so as to maintain integrity and confidentiality of
data at all times.
• The Bidder will be responsible for setting up the test environment for interface testing.
• The Bidder will help / assist LIC in preparing the test cases for the testing. Bidder shall ensure
that the test cases meet all the testing requirements of LIC.
• The Bidder must ensure that a sound methodology is implemented (e.g SOA governance
framework, integration competency centre) to manage the interfaces.

The application should use Service Oriented Architecture best practices and should use industry standards
for integration to achieve universal use.
Any external integration with third party systems should be based on standards such as ACORD XML for Life
and Annuity Standards. This means the outgoing data from LIC‘s new P&GS application should be
represented in ACORD format.
The application should be able to integrate with third party applications over LAN, WAN and internet. e.g.
Integration with the PAN database of the Income-tax Department, the State Government Database for
Social Security Schemes, database of Bancassurance partners, database of Third Party Administrators and
any other third party service providers.
Below is the proposed data architecture for P&GS and the integration requirements with other applications
within and outside LIC;
Interface Inbound Outbound

Application Data Type Mode
Number (To P&GS) (From P&GS)
Member data Customer Data, Policy Data, Inbound-Batch
P1 Portal Claims data Claims Data, Annuity Data, Policy Transactional Outbound-
Annuity Updates Transaction Data Real-time
Premium
Collection
P2 ODS Information Transactional Batch
Agent Commission
Details

Employee
Policy and
Partners Various Interface pages Master
P3 Customer Data Real-time
Customers Transactional
Claims Data, etc.
Mobile
LIC Pensioners
HRMS from Authentication logs Master Batch
P4a Data
eFeap Transactional Real-time
Employee Data
OS and Employee Vendor

Authentication logs Master Batch
P4b others Payment, Office
Transactional Real-time
from eFeap Services
P5 CADW -- All data as required by CADW Transactional Batch
Access to Policy Schedule

documents by Small Batches
P6 EDMS Customer Documents Transactional
Redirection to Thru Cron
Legal Documents
EDMS
Policy and Policy and Customer Details

Third Party
P7 Customer Data Claims Details Transactional Real Time
Database
Claims Data MIS Reports
8.5 Detailed Design

The activities associated with detail design should include specifications for all application objects, such as
programs, screens, interfaces, reports, templates, and forms.
The Bidder‘s responsibilities include documentation of the detail design methodology. The Bidder must
develop the detailed design for each software component of the application. The software components
must be refined into lower levels containing software sub-components that can be coded, compiled, and
tested, as appropriate. The detailed design must ensure that all the software requirements are allocated to
the software components.
The detailed design should describe the system architecture and design at the detailed level and provide the
programmers sufficient information to develop the application. The Detailed Design Document must include
the following components:
 Detailed description of system architecture
 Final logical and physical data models
 Entity Relationship Diagrams
 Data Flow Diagrams
 Data Dictionary
 Business Process diagrams that show the relationship between business processes, input, and
outputs
 Business Rules
 Processing controls
 Processes to manage application installation and configuration
 Screen narratives with screen/field mapping
 Detailed program logic descriptions and edit logic including, at a minimum, the sources of all
input data, each process, all editing criteria, all decision points, and associated criteria,
interactions with other programs, and all outputs
 Data backup procedures
 Security controls

The Bidder must conduct a walkthrough of the final Detailed Design with LIC to validate its contents, the
incorporation of all information from the design sessions, and the incorporation of all non-functional
requirements. Approval of the Detailed Design is required before development can begin. The final design,
once formally approved by LIC, will, together with the approved Functional Specifications and Design
Document, constitute the complete System definition for the new P&GS application
8.6 Application Configuration and Development Management
The objective of Configuration Management is to establish and maintain the integrity of all identified
versions of the application artefacts throughout the lifecycle of the project, and to make them available for
reference purposes e.g., for system backup, rollback and recovery, and problem identification and
resolution. The Bidder‘s configuration management plan must define a strategy for the disposition, access,
release and control of changes to the items that are subject to configuration control.Items must be
identified that are subject to configuration control and ensure that the execution is recorded, evaluated,
approved, incorporated, and verified.
The development activity is to produce executable software components that properly reflect the software
design. The Bidder will create the Software Development Plan, which must describe the Bidder‘s methods
and processes for a systematic, documented approach for all software development activities and the
environment in which this work will be accomplished.
The Software Development Plan must include the following;

 Software Development Methods –Description of the software development methods that will
be used in the project, including descriptions of manual and automated tools and procedures
that will be used in support of these methods
 Standards for Software Development – Description of the standards to be followed for

design, code, and testing
 Coding Standards – Description of the programming language used and, at a minimum,

format for, header and other comments, naming conventions, use of programming language
constructs or features, and the approach and methodology to construction
 Quality Assurance - Activities that ensure adherence to design and development requirements
8.6.1 Change and Release Management

As a part of the Change and Release Management, the Bidder will be requirement to manage and
document changes to the application and any of the constituent components being developed. This
will include the following;
a) Library Management
The Bidder will create the Development Library, which should consists of the program source code,
code documentation, executable software, and associated artefacts to build and operate the P&GS
application. At a minimum, the outcomes of this task must include detailed descriptions of the
following:
 Tools and business processes to control software development, including check-in/check-out
procedures and a responsibility audit trail
 Business processes and procedures for controlling migration of code from design through
coding , testing as well as promotion into production
 Organization structure to control all system development and maintenance

 Software development management process including the migration of code from design to
production and including diagrams and other graphical devices to communicate the processes
b) Version Control
The maintenance, tracking, and auditing of modifications to an application‘s components over time,
facilitating the restoration of an application to prior development stages.
c) Turnover Management
The automated promotion of software changes across different phases of the lifecycle (e.g.
development, testing and production), including management of the approval process, production
turnover, and software migration control.
The Vendor shall propose a centralized solution to automate and control the software change and
release management process.
8.7 Implementation Management
Implementation shall include identification of all hardware, software, and licensing necessary for all
environments for design, development, testing, training, implementation, operation, and maintenance of the
application.
The Bidder must implement all application functionality and must satisfy functional and technical
requirements specified in this document. All functions must work correctly and efficiently according to the
approved Implementation Plan.
The Bidder should create the Implementation Plan, which describes the plan for implementation and how
the objectives of the plan will be achieved. At a minimum, the plan must include:
 Description of the activities needed immediately prior to implementation such as identification
of the number, type, skill level, and roles of the personnel needed, and a definition of the issue
management process
 Description of the implementation activities, including a description of each task and inclusion
of the schedule, including timelines and dependencies such as completion of knowledge
transfer
 Inventory of all hardware and software necessary for the application to support the design,
development, testing, training, staging and production environment
 Inventory of all hardware and software necessary for efficient ongoing operation and
maintenance of the application
 Disaster recovery provisions to include hardware and software necessary to assume all of the
functions of the production environment
 Checklist of all items that must be verified prior to onset of production operations
 Checklists of work to be performed and/or outputs to be produced on the first day and at the
end of the first week, month, quarter, and year of operation
 Outstanding issues and mitigation plan for the same
 Roll back plan to include in detail what will be done if the implementation does not succeed.
This plan must include risks (decision points and triggers), identification of individual decision
makers and recovery actions to be taken
 Performance monitoring
 Risks and contingencies
 Implementation verification and validation
 Definitions of the criteria for both success and failure of the system implementation

8.7.1 Readiness Assessment
The Bidder should create the Final Readiness Assessment to assist in the determination of final
implementation readiness. At a minimum, the assessment must address the following:
 User Acceptance Testing approval

 Knowledge transfer sign-off, documenting that technical, business user and super-user
knowledge transfer has been completed and has been duly approved
 Readiness that all locations, application users, and security profiles have been identified and set
up in the application
 Assessment Summary that includes the analysis completed, risks, and mitigation associated with
implementation and a recommendation for proceeding
 Disaster Recovery is documented and ready
8.7.2 Set up of required Environments

The Bidder will be responsible for setting up the environments. The required environments are the
following:
1. Test and Training environment:
a) Development environment – for development of changes to the software configuration

and software code. The environment will be maintained by the bidder
b) SIT environment- for integration testing environment where data integrity between
modules or other applications will have to be maintained. The environment must be
provided to conduct regression testing of the application which will include all
functionalities, modules their interdependencies and testing the various integration touch
points of the application
c) UAT environment – for user acceptance testing of changes / enhancements in the
software configuration and code. It should be possible to move the software configuration
and code changes using front end automated processes and not through manual copying
of code. There should be proper versioning and change control procedures built in the
application to ensure integrity of the software and to build a proper audit trail of all change
management.
d) Training environment- Training Environment must be provided to avoid disruption of
other production and implementation activities. The Training Environment must include a
database that replicates (or sufficiently emulates) the Production Environment, including
copies of all software, databases, tables, and files loaded with sanitized training data
e) Staging/Quality Assurance Environment- this should be a pre- production environment
and should be a mirror of the production environment. LIC would conduct acceptance
testing on this environment prior to movement into production. The staging environment
should be used for functional and user acceptance testing, stress testing, and performance
benchmarking
2. DC/Production environment- this is the live production environment where all master and
transaction data would reside. The production environment should also have provision for a
simulation environment for a new product set-up or to make changes to an existing product
set-up to gauge its implications on the underlying policies and premium, after which it should
be possible to migrate the set-up/changes to the live area. This requirement becomes more
pronounced, since the UAT environment may be running on a higher version of the software for

testing of changes before moving to production environment. This should not hold up the
process of launching new products and workflows
3. DR environment- for replication of data (synchronized or asynchronised or manual restoration

of backup) to be used in a scenario wherein a DR is activated. Users should be able to connect
to this environment, from all the production points of sale and service, for the purpose of
regular testing as well as to use the same when the DR is activated. The test data entered
during periodic DR testing drills should be managed separately and should not interfere with
the replica of the production database in the DR environment
The Bidder has to provide physically separate environment for the Production Environment (DC & DR)
and for the other above stated environments.
Development and test environment should include configuration management capabilities and tools
for system configuration, versioning scheme, change control processes and procedures to manage
deployment of application.
The test, development, and staging environment should include required workstations, desktops, and
tools appropriate to support development, testing, and staging, and deployment tasks.
The complete solution must be capable of being deployed in a Private cloud and must support
virtualization.
In the event of an Onsite-Offsite model, the bidder will have to provision for use of its own systems
(desktops/laptops etc.) for carrying out development, unit testing activity out of LIC premise as would
be identified by LIC.
On completion of supply of the hardware at LIC, the bidder will have to configure all the above
mentioned environments on LIC's infrastructure for use by LIC, or the bidder, as may be the case.
8.8 Continuous Monitoring and Application Lifecycle Management

Bidder must ensure there is provision for continuous monitoring of the development, testing and
implementation activities. Monitoring should allow LIC visibility into the status of each step of the project
and enabling the project teams to put in place effective controls to better regulate the development effort.
There should be complete visibility and traceability on application life cycle activities of software
development including requirement management, software configuration management and change
management.
Monitoring and Life Cycle Management should allow LIC to perform the following (indicative activities are
listed below);
 View and monitor daily developer plans

 View progress status for each track and module being developed based on real task completion
data
 Summary for developer tasks, task assignment and time spent on activity by the developer
 Code reviews and bug reporting
 End to end traceability between requirements, designs, development tasks, and test plans and
implementation
 Integrated Change Management and capability to assess impact of change on other
requirements, release timelines and resource allocation
 Quickly track down issues with complete audit trails of builds and releases
 View Backlog plans

 View and monitor Release plans
 Multi-level review and approval of requirements and stages of development
 View planned activities and time tracking for activities
 Reporting and provision for custom dashboards for individual users, projects, and teams to
focus on the right level of data
 Review the real time project status online using standard web browser or mobile device
8.9 Data Migration

Data migration is primarily concerned with the transfer of data from the source system to the target system.
It is a subset of Implementation. This section describes the scope for Data Migration from existing source
systems to new P&GS application.
The Bidder will need to migrate the master data and transactional data (current and historical) from the
current system to the new application.
The data at the 74 units is as tabulated below.
Unit name DB size Annuitants Policies Users

(GB)
AJMER 12.77 2573 3157 29
CHANDIGARH 26.17 3028 6569 39
DELHI 71.84 173151 15429 89
JAIPUR 34.65 6427 10952 39
JALANDHAR 7.08 1648 3192 16
JODHPUR 7.57 492 4262 24
KARNAL 10.72 772 3237 25
LUDHIANA 16.60 1330 3747 16
SHIMLA 8.67 900 5397 19
JAMMU 5.75 2201 2005 10
AGRA 4.65 564 2955 25
ALLAHABAD 11.72 1308 3710 23
BAREILLY 6.19 1178 3081 19
DEHRADUN 16.52 18406 6601 40
GORAKHPUR 5.23 711 2023 10
KANPUR 7.50 3822 4449 25
LUCKNOW 26.63 1800 7850 50
MEERUT 9.11 5499 3180 23
VARANASI 7.57 977 4894 18
NOIDA 10.84 133 1523 15
HALDWANI 3.60 0 970 14
BHOPAL 23.72 1602 9195 39
GWALIOR 11.45 276 2420 10
INDORE 21.61 2478 9338 28
JABALPUR 28.70 657 7392 44
RAIPUR 36.31 796 7052 41
ASANSOL 10.79 988 2852 21
KOLKATA 105.31 82711 28553 104
GUWAHATI 11.37 4728 7819 27
JALPAIGURI 8.01 450 2472 21
JORHAT 16.35 9654 2735 23
SILCHAR 5.50 301 2575 15
BANGALORE 101.60 60944 15141 67
CUDDAPAH 14.81 937 7774 20

DHARWAD 13.14 1570 8332 22
HYDERABAD 262.19 211854 13840 83
VIJAYAWADA 12.97 2248 10566 34
MYSORE 13.87 1741 5760 30
RAICHUR 7.26 698 4737 19
MANGALORE 16.21 5863 6893 33
VISHAKAPATNAM 18.25 10579 4622 28
WARANGAL 13.20 318 7296 20
ESAT VWADA 104.80 258523 21 18
COIMBATORE 17.79 7202 6580 33
ERNAKULAM 24.90 17217 9043 24
KOTTAYAM 14.66 1494 2948 22
KOZHIKODE 18.15 1161 3637 22
CHENNAI 102.44 74497 15610 65
MADURAI 25.56 2294 6296 27
SALEM 17.85 1442 5730 33
THANJAVUR 15.77 3076 6347 19
TIRUNELVELI 12.15 2019 4219 18
TRIVANDRUM 26.15 1521 4868 19
VELLORE 14.80 1053 6482 20
AHMEDABAD 30.29 14361 6018 30
AMRAVATI 8.77 178 3235 17
AURANGABAD 12.45 1845 3372 25
GANDHINAGAR 27.92 1727 1951 23
GOA 9.95 4192 2610 17
MUMBAI 80.93 36573 9735 71
NAGPUR 21.88 4073 6542 34
NASHIK 14.62 2392 4653 22
PUNE 42.61 26642 7436 70
RAJKOT 14.33 4849 6077 21
SATARA 9.67 1256 5244 24
SURAT 11.67 4242 3433 15
THANE 13.46 11620 2777 18
VADODARA 23.11 16499 4982 27
PARLE 58.59 248672 4808 45
SION 24.32 1758 2566 13
BHUBANESHWAR 22.20 17789 9367 38
JAMSHEDPUR 13.22 56508 4443 33
PATNA 22.84 1975 10494 31
SAMBALPUR 10.13 992 5582 17
RANCHI 6.54 0 1400 21
1938.57 1457955 445053 2229
***Fig. as on 30.11.2017
• LIC expects the selected Bidder to migrate the master and transactional data into the new
application
• All the current and historical data residing at the respective units should be migrated to the
new centralized P&GS application

• The selected Bidder will be responsible for successful data migration from the legacy systems to
the new environment. The Bidder‘s Proposal needs to contain a proposed data migration
strategy and implementation plan, taking into account LICs priorities as outlined in the RFP.
• The Bidder will be responsible for formulating the Data Migration Strategy and process
documents which will have to be reviewed and signed off by LIC prior to commencement of the
data migration exercise.
• The Bidder should provide a reconciliation tool to facilitate the migration process. In the event
of any gaps in the field mapping reports the same would be discussed with LIC and the agreed
solution would be documented by the Bidder and signed-off from LIC. The Bidder shall ensure
that workarounds or default values, moved to the production database as a result of gaps in the
field mapping, are duly taken care of after successful migration to the new application, and that
LIC officials are informed of the same in writing.
• It will be the responsibility of the Bidder to ensure complete data cleansing and validation for
all data migrated from the legacy systems to the new application. The bidder will use scripts to
check the data quality, validation results and share the results of same with LIC for review and
assessment of quality data migration carried out. The Bidder must also highlight any gaps in the
data. LIC will then capture and provide these data.
• It will be the responsibility of the bidder to study the data architecture and schemas of the
current P&GS application and plan for the migration into the new environment
• Load the data into the new application and the other related data storage for the application to
function correctly
• The Bidder shall ensure that sufficient training is imparted to the data migration team of LIC
with regards to the new application data structure, field mapping requirements, field
validations, default values and gaps in field mapping reports.
• The Bidder shall perform mock data migration tests to validate the migrated data.
• The Bidder will be responsible for assisting LIC in conducting the acceptance testing and in
verifying the completeness and accuracy of the data migrated from the legacy applications to
the new application.
• LIC or its consultants may, at its will, verify the test results provided by the Bidder.
• LIC reserves the right ―to audit‖ / ―appoint an external auditor to audit‖ the process of data
migration and / or the completeness and accuracy of the data migrated during the entire
exercise of data migrations
• The Bidder will be responsible to develop control reports for verification of the data both before
and after migration
8.10 Hardware, Software, Network and Bandwidth
8.10.1 Sizing
The Selected Bidder has to provide the sizing of the hardware, network and bandwidth (as
per format provided in Annexure XVI – Hardware Sizing Details Document required to
support the application as would be developed as part of the detailed scope of work and for
the bidder to meet the SLAs mentioned in the relevant section of this RFP.
Similarly, the sizing of all the software components like Database, Web-App Servers,
Storage, etc. is also required to be done by the bidder.
The sizing details as provided in Annexure XVI will be evaluated as part of the Technical
Evaluation and Customer Reference.
If the sizing provided by the Bidder does not support the desired performance levels and
SLAs as mentioned in the RFP, cost for any additional hardware/bandwidth procured by LIC

to meet performance standards will be recovered from the bidder. This cost will be over and
above the penalty levied for not adhering to the SLAs provided in section 10.
If any Hardware, Software or any other component of the proposed P&GS Solution quoted
and delivered by the bidder is not put to active use in the deployed P&GS solution. LIC will
recover the cost of that hardware / software component from the vendor. It is further
desirable that the delivery of the Hardware, Software or any other component for the
proposed solution must be planned in a way that any component does not remains idle. A
penalty of 1% of the cost of the component may be charged per week if it is not put to
active use even after 4 months from the delivery.
It is the vendor‘s responsibility to design, architect and commission the required

infrastructure for the solution to fully comply with the Functional, Technical and Operational
SLA defined in this RFP. Bidder has to provide Infrastructure for Production, Quality
Assurance/Staging, Development, Test, Training and Disaster Recovery Environments.
The above environments are to be configured with all necessary hardware and software
licenses. UAT environment will be required for the complete solution components. Kindly
note that the Bidder has to provide all necessary software and hardware required in this
Solution. The vendor can propose to combine certain environments, where appropriate.
Equipment, hardware, software proposed by the Bidder should not have been announced
by the OEM towards End of Sale/End of Life/End of Support. Hardware provided should be
scalable to handle the projected business volume. If the data size exceeds the projected
rd
volume by 3 year due to any unforeseen situation, LIC may consider upgrade on
chargeable basis.
8.10.2 Supply and Deployment - Hardware

The Supply, Installation, Configuration, Application deployment and Maintenance of
Systems/Hardware during the project period (including Load Balancer, Engineered System,
Servers, Storage, Tape Library etc. but excluding End User Client Machines) will be the
responsibility of the Selected Bidder.
The Selected Bidder will be responsible for all unpacking, assemblies, wiring, installations,
cabling between hardware units and connecting to power supplies. The Selected Bidder will
test all hardware operations and accomplish all adjustments necessary for successful and
continuous operation of the hardware at all installation sites.
The provision for network, network equipment and bandwidth will be made by LIC on the
basis of the details as provided by the Bidder.
There shall be no dependency or any assumption on part of the Bidder that he can share or
make use of existing hardware, except for the following:
 DC Network (routers, switches, LAN cabling, Layer 7 Switches)
 Security related infrastructure (Firewalls and IPS)
All required cables & connectors and any other accessory need to be provided by the
vendor. All server and hardware need to be provided with IP-KVM for remote management.
Bidder should propose form factors to ensure optimised data centre space, power and
cooling requirements.

The supplied hardware must be under comprehensive onsite warranty and support for 5
years.
8.10.3 Supply and Deployment – Software

The Supply, Installation, Configuration, Application deployment and Maintenance of
Systems/Hardware during the project period (including any component required at the End
User Client Machines) will be the responsibility of the Selected Bidder.
Following is the Indicative list of Software which may be supplied by the bidder (This is just
an indicative list, the bidder is required to study the RFP and arrive at the proposal of the
solution with due diligence):
 Database (Enterprise Edition), Real Application Clusters, Partitioning, Tuning Pack,
Diagnostic Pack, Active Data Guard
 Web Server
 Portal Server
 Application Server
 ESB component, etc.
The Bidder should provide perpetual use software package licenses with updates and
maintenance support for a period of 5 years for all proposed components to fulfil the scope
of the RFP. Software Products proposed by the bidder should be in the Gartner‘s Magic
quadrant or any one of the listed reports like Forrester wave, G2 crowd etc. This aspect will
be technically evaluated.
There shall be no dependency or any assumption on part of the Bidder that he can share or
make use of existing software, except for the software licenses/tools listed in Annexure XX
The Bidder may add more components as deemed fit to ensure complete coverage of the
RFP requirements.
Proposed components must fulfil the mandatory technical eligibility requirements.
The components proposed as part of the solution stack should be commercially available
products and should not require any ground level development. The components should be
backed by Product Road Map for at least 3 years from the date of release of the RFP
document. LIC currently uses Apache HTTP Server and the same is acceptable if proposed
by bidder for the web tier with commercially supported plug-ins. Also, the solution
components must come with technical support guarantee for at least 5 years from the date
of the release of the RFP document. LIC agrees for upgrades for the software, when required
to align with the product roadmap of the OEM.
In case of takeover / amalgamation / merger of the bidder or the Hardware / Software

OEMs by/ with another company, it shall be the responsibility of the Vendor to ensure that
the Service Level Agreements (SLAs) and other commitments entered into will be continued.
The new entity and bidders will have to submit an undertaking to this effect.
The solution offered should be based upon a database platform which is being used at
least in five of public sector banks or public sector insurance companies in India as a core
banking/insurance solution. The necessary evidence of database being successfully in use in
these entities like OEM certificate or client certificate should be submitted at the time of
proposal/bid submission. Further, the solution offered should be JEE compliant. The bidder

has to ensure OEM participation in the evaluation process as required to validate the overall
design and execution approach.
8.10.4 System Maintenance
The vendor will carry out preventive and breakdown maintenance activities to ensure that all
Systems (Hardware, Software and any other component/services provided by the bidder for
this P&GS Solution) performs without defect or interruption with at least 99% up time for 24
hours a day, and on all 7 days of the week of operation, worked out on a monthly basis. This
uptime requirement will be the basis for calculating all penalties related to the system
downtime. Uptime means the entire hardware, software and up-to-date database systems
functioning at full capacity.
If any critical component of the entire configuration is out of service for more than two
calendar days, the vendor shall either immediately replace the defective unit or replace the
system at its own cost. The vendor will respond to any complaints through a site visit by a
qualified technician and repair the equipment within 24 hours of being notified of
equipment failure. However system not being available beyond 24 hours will attract penalty.
2 Engineers are required for the maintenance of the hardware system during the service
window. For details refer clause 8.16.1.
8.10.5 Data Centre Hosting
LIC will provide the space, power, rack, air conditioning inside the Data Centre.
8.10.6 Catering to the Reporting requirements
The Disaster Recovery Site will be a replication enabled active site catering to the reporting
requirements. Vendor has to put in place a plan for non-disruption of reporting activities
during a DR drill or when the Primary site is down.
LIC is likely to have its DR site for this project at Bangalore.
8.11 Security
The selected Bidder must ensure the security of the P&GS application and the data throughout the project
lifecycle.The System should be compliant with the latest IT Security Guidelines issued by IRDA and Govt
AgenciesThe outcome of this task must include, but not limited to, the following information on:
 Approach to establishing and maintaining security responsibility and accountability
 Granting or restricting access to all the application and data, auditing security events, auditing
security configurations and changes, generating security reports, and monitoring the
application for vulnerabilities and intrusions
 Managing user creation, assignment of new User ID (User Identification)/password/personal
identification numbers (PINs), role assignments, and activity monitoring
 Compliance, including the approach to maintaining compliance with law, standards, best
practices and LIC‘s enterprise security requirements
Technical security must include, at a minimum, the approach to each of the following:
i. Network segmentation
ii. Application security and data sensitivity classification
iii. Intrusion management

iv. Monitoring and reporting
v. Host hardening
vi. Remote access
vii. Encryption (128-bit minimum)
viii. Details of integration with LIC‘s Identity and Access Management Application
ix. Interface security
x. Security test procedures
xi. Security patch management
xii. Defending against viruses
xiii. Secure Sockets Layer (SSL) for providing communications security over the internet
xiv. Zero day vulnerabilities
8.11.1 User Access Security

The selected Bidder shall define the approach for user access security and the user access plan
must cover a minimum of the following;
 Types and relationships between the P&GS application security elements, e.g., users,
groups, and roles
 Categorization of access into different security levels that will be defined by LIC to
include, at a minimum, users, groups, and roles
 Matrix of roles and privileges
 Screen/Window level security
 Level of authorization/security for specific functions by individual user including module
level security for grouping of screens/pages
 Restrictions on modifying or overriding application edits and audits or altering
application functionality
 Security checks, before allowing access to any files including data, software, code,
resources, or any other files resident with or accessed by LIC
Types of events that require logging and monitoring in response to specific situations;
 Successful and unsuccessful logons and logoffs
 Successful and unsuccessful attempts to access security relevant files and utilities,
including user authentication information
 Log information on read, modify operations
 Configuration changes made during auditing operations
 Unsuccessful usage of user identification or authentication mechanisms
 Changes to the time or any other sensitive field value
 Activities that modify, bypass, or negate system security controls
 Use of privileged accounts
 Administrator logons, changes to the administrator group, and account lockouts
 Actions following log storage failure or exceeding threshold levels
 Modifications to user groups within a role
 Key recovery requests and associated responses
 Access denials resulting from excessive numbers of logon attempts
 Blocking or blacklisting of user ID, terminal, or access port
 Detected attacks
 Rejections of new sessions based on limits to number of concurrent sessions
 System software installations

8.12 Testing
8.12.1 Master test plan

The Master Test Plan must address the Bidder‘s test strategy and outline the plan for all levels of
testing. The Bidder must address, at a minimum, the following;
 Definition of the Test Phase and Objectives
 Entrance and Exit Criteria for the Test Phase
 Approach to testing including test data, test standards, verification approach, test tasks, test
techniques and methods, etc.
 Testing processes including test preparations, orientation and kickoff, test execution, test
monitoring, test status meetings and reporting, closure evaluation criteria, etc.
 Approach to creating the test environments
 Key milestones associated with each Testing Phase, including:
 Test Case Approval
 Test Environment Readiness
 Test Start and End dates
 Code Freeze Date(s)
 Required Approval Dates for Test Cases, Entrance and Exit Criteria, etc.
 Regression Testing start and end dates
 Test Results Review Meeting Completion
 Code Promotion Go/No-Go Decision
For each type of testing, the Vendor must use an appropriate mix and volume of transactions and
data.
Complete testing shall also be required for every system interface that is built and put into
production. The testing functions of the Project shall be iterative and span the entire length of the
Project.
8.12.2 Unit and Integration Testing
The Bidder should ensure that the various objects that make up the application are individually
tested. The Unit test plan must document the Vendor‘s plan to execute and document the results
of unit and integration testing, which must include at a minimum:
User Interface testing: verifies the graphical user interface (GUI) is usable and works as specified
Business Layer Unit test: testing the process as expected (valid data) or by performing ―prescribed
error handling‖ (invalid data)
Data Layer Unit test: validates that the graphical user interface, the business layer, and the data
layer integrate correctly
8.12.3 System Integration Testing
The system integration testing is aimed at proving that the system meets the stated requirements
and objectives by validating the total system in a real world scenario. This testing shall be
performed by the Bidder.
System testing shall utilize ―real‖ data, and shall be performed by the Bidder. The system test shall
be intended to demonstrate the critical business functions of the application and the overall
effectiveness of the user-facing aspects.
The following activities shall be covered during system testing;
 Business Function Scenarios as defined– data and business processes must be fully
integrated across functional areas and that integration should be fully demonstrated
 Business transaction testing
 Error Message Testing
 Documentation Testing

 End-to-end business process testing
 Report Generation and Printing
 Interface Testing (all Interfaces included as a part of the application)
 Usability Testing
 Regression Testing
 Integration Testing
 Integrity Testing
 Performance Testing (stress, load testing)
 Security Testing
 System Recovery and Restoration Testing
8.12.4 User Acceptance Testing

UAT will enable LIC to ensure that the application meets the functional, technical, and operational
requirements as mentioned in this document and that it is ready for enterprise deployment and
operational use. This activity will include preparation of the test environment, specification of dates
and times for end users to conduct testing, knowledge transfer for any tools that will be used to
assist end users during testing or for the production or viewing of results, and reporting of test
results. Testing will ensure the operations, hardware/software and integration aspects of the P&GS
application are functioning as designed, will certify the application meets contract requirements.
At a minimum, the following activities shall be performed by the Bidder as a part of the UAT:
 Identification and provision of the required Bidder resources to support UAT activities
 Development of the defect resolution management plan
 Development of the overall UAT Test Plan and schedule
 Development of required UAT Test Cases
 Each requirement identified in the RFP shall be tested by at least one Test Case. One
Test Case may provide for the testing of multiple requirements.
 Compiling and evaluating the UAT Test results
 All problems/errors reported shall be responded to within the timelines as documented
as a part of the SLA (section 8 of this RFP)
 UAT Test reruns shall be treated as any other UAT test activity and documented
accordingly
The Bidder should submit a set of standard executable UAT test cases for the P&GS application as
part of its response to the Technical proposal.
8.12.5 System Regression Testing
The Bidder shall perform regression testing throughout the testing process to verify system
integrity after functional improvements or fixes have been made as a result of System Integration
and User Acceptance test activities. Regression testing shall be designed to confirm that fixes have
not created any new problems and that the results are as planned. The Bidder shall document all
tests performed. It shall be the responsibility of the Bidder to ensure all automated test scripts
have been assessed to ensure their proper function.
The Bidder will be responsible for the below as a part of the Testing Phase;
a. The bidder will be responsible for Unit Testing and SIT and will support UAT.
b. Bidder will be responsible for providing Unit Test cases and provide all details associated
with the testing
c. Support ―User Acceptance Test‖ (―UAT‖) testing

d. The Bidder will convey all the modifications and development work required , as agreed
upon and signed off by LIC, are completed and the application is ready for testing.
e. The Bidder will set up the test systems, to accommodate a minimum of 20 concurrent
users for the new application and support simultaneous 5 users of each of the delivery
channels and Support applications and install the applications including the
modifications, parameters as per the requirement. LIC expects the test environment to
be available at all times, for the purpose of testing. The Bidder is expected to procure,
implement, commission and maintain the requisite test and development infrastructure
including hardware, software, operating system and database for all applications
including any 3rd party solutions being offered by the Bidder. LIC shall not pay any
additional amounts to the Bidder for the purpose of creating the test environment.
f. The Bidder will develop comprehensive Test Scenarios, Test Cases and Test Scripts that
test each requirement in a logical and business process-oriented manner including the
all the test data to support all the Business scenarios. The Bidder should dedicate
resources for this to work with the project team
g. The tests that are developed must be repeatable and must be directly traceable to the
requirements
h. The Bidder will assist LIC in conducting all the tests and analysing / comparing the
results.
i. Bidder shall provide minimum 5 full time resources conversant in all business areas, for
trouble-shooting during the entire UAT process.
j. Any deviations / discrepancies / errors observed during the testing phase will be
formally reported to the Bidder and the Bidder will have to resolve them immediately or
as per the agreed upon SLA.
k. The Bidder will be responsible for maintaining appropriate program change control and
version control for all the modifications / enhancements carried out during the
implementation / testing phases.
l. The Bidder will be responsible for providing and updating system & user documentation
as per the modifications.
m. All errors, bugs enhancements / modifications required during and after testing will be
immediately resolved by the Bidder, and sign – off for the same will be obtained from
LIC. However, workaround solution should be provided ON THE SAME DAY with the
approval of LIC prior to implementing the work around, in respect of errors and bugs
affecting the functioning of the business.
n. The Bidder will be responsible for using appropriate tools for logging, managing,
resolving and tracking issues and its progress, arising out of testing and ensuring that all
issues addressed in a timely manner to the satisfaction of LIC.
o. The testing environment would not be required for the disaster recovery site. LIC will not
provide any desktops for the Bidder personnel
p. The Bidder is required to provide for automated test scripts for simulating test cases in
the Test environment
8.13 Pilot
The Bidder has to implement the new P&GS application with all its functionalities on pilot basis at 3
identified P&GS units spread across the country.
Details of the units as identified for the pilot are likely to be one each from the following groups:
( a) Bangalore, Chandigarh (b) Delhi, Mumbai (c) Ernakulum, Satara and Thane.
 The Bidder will be responsible for installing the applications with all the customizations.

 The Bidder will set all the parameters in the application as accepted in the test environment.
The Bidder shall be responsible for accuracy of the parameters set according to the business
needs of LIC
 The Bidder will be responsible to migrate the Unit data as explained in ―Data migration‖ section
 The Bidder will be responsible for ensuring that all the client software is installed at the Unit
computers for going live
 The pilot implementation phase will be deemed complete once the Bidder has obtained a sign-
off for implementation at all the pilot Units. The Unit will need to run successfully for a period
of at least 30 working days before Unit can signoff the pilot implementation
 In the event of any deviation/discrepancies/errors observed at the pilot, the sign off will only be
given by the Unit once the deviation/discrepancies/errors reported by the Unit have been
successfully rectified by the Bidder
 The Bidder shall depute relevant personnel to attend and resolve the Unit issues related to the
application immediately (Maximum of two working days)
 During the entire pilot implementation the Bidder should provide onsite resources on a full
time basis including a full time onsite project manager as part of their implementation team for
the pilot implementation
The sequence for the pilot will be decided during the course of the development and implementation of
the application. The Bidder will have to plan for cooling period between pilots.
8.14 Roll Out
The Bidder needs to roll out the application as specified in the RFP. It is assumed that any new Unit/Office
opened by LIC would be on the new application, and would utilize all the delivery channels.
8.14.1 Roll Out Plan:
All timelines are from the first month (M1) which is the date of signing the contract with LIC. The
timelines specified for each month in the below table are from the start to the end of that month. If
however, this date is later or earlier than what is assumed, then the timeframes will be adjusted
accordingly. The Bidder is expected to factor in all effort required to adhere to these timelines. LIC
will not accept any plea by the Bidder at a later date for deviating from these timelines on the
pretext that the same was not explicitly mentioned in the RFP.
LIC, at its discretion, shall have the right to alter the delivery schedule and quantities based on the
implementation plan. This will be communicated formally to the Bidder during the implementation,
if a need arises. Thus LIC, at its discretion, may decide to accelerate the Unit/Office implementation
and the Bidder would need to meet the requirements.

Key Activities M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16
Business and Functional within 2 months from
Requirement Analysis date of signing the
contract
Detailed Design within 3 months from date of
signing the contract
Data Migration Strategy within 3.5 months from date of
signing the contract
Development within 10 months from date of signing the contract
Application Integration within 10 months from date of signing the contract
Data Migration for Pilot Run within 12 months from date of signing the contract
System Integration Testing within 12 months from date of signing the contract
User Acceptance Testing within 13 months from date of signing the contract
Pilot within 15 months from date of signing the contract
Data Migration within 15 months from date of signing the contract
Application Go Live within 16 months from date of signing the contract
Performance Benchmarking within 12 months from date of signing the contract
System Audit Concurrent audit to be conducted from time to time as per the delivery schedule planned by the Bidder
Replication to DR within 15 months from date of signing the contract
Implementation and Go Live within 16 months from date of signing the contract
Training and Knowledge within 16 months from date of signing the contract
Transfer
Strictly Confidential Life Insurance Corporation of India Page 87of 131

8.15 Quality Assurance
The Bidder must provide a plan to monitor Quality Assurance throughout the life of the project. Quality
Assurance will ensure the operations and hardware/software aspects of the P&GS application are
functioning as designed.
The Bidder shall create the Quality Assurance Plan for the purposes of describing its approach to maintain
high-quality standards and ensure internal quality controls of product and processes throughout the life of
the project. It shall include topics such as:
 Quality standards, methodologies, procedures, and tools to be monitored
 Procedures for contract review and coordination thereof
 Procedures for identification, collection, filing, maintenance, and disposition of quality records
 Resources, schedule, and responsibilities for conducting quality assurance activities
 Issue documentation, reporting and resolution
8.16 System Maintenance and Support

The Bidder must activate the application in its intended operational situation to deliver the services
according to its intended purpose. Continuous service capacity and quality must be maintained when the
application replaces an existing system. Types of service include requirement analysis, testing, verification,
and installation of Bidder supported software, in accordance with bug fixes, emergency changes and
program changes initiated by the users.
The selected Bidder will be responsible for the day to day maintenance of the application for the entire
period of Contract. The Bidder will be responsible for smooth Operations and Maintenance Services for
the period covering onsite support for 5 years post roll out which would include the Warranty and AMC,
from the date of contract, covering the following:
 All product upgrades, modifications, enhancements that have to be provided to LIC free of
charge
 Upgrades would include product releases made by the Bidder to incorporate technological
changes, consolidating all bug fixes, consolidating all enhancement requests made by LIC
 Modifications would include minor changes, bug fixes, error resolutions and minor
enhancements that are incidental to proper and complete working of the application.
 Enhancements would include changes in the software due to Statutory and Regulatory
changes and changes required due to changes in industry and other Insurance practices in
India. It will also include all the functionalities mentioned in Annexure VII - Functional
Requirement
 All incidents that occur as part of ongoing operations must be addressed and resolved
within a reasonable time frame as per the SLAs described in this RFP.
 Changes to the application will go through all phases of testing by the Bidder. The test
results must be documented and provided LIC for approval before a decision is made to put
the new release into Production. All relevant system documentation should be updated and
provided to LIC at the conclusion of any system changes
 Overall monitoring and management of all IT and Non-IT infrastructure deployed by the
selected Bidder for the Project, Departmental locations, system software, application and all
other services associated with these facilities to ensure service levels, performance and
availability requirements as prescribed in the RFP
 Perform system administration tasks such as managing the user access, creating and
managing users, taking backups etc.
Strictly Confidential Life Insurance Corporation of India

 Performance tuning of the application to ensure adherence to SLAs and performance
requirements as indicated in the RFP
 User support in case of technical difficulties in use of the software, answering procedural
questions, providing recovery and backup information, and any other requirement that may
be incidental
 Prompt receipt, analysis and reporting of reported deficiencies in the operation of the
software and supply of information and advice on such deficiencies
 Installing/commissioning the software at the designated locations/changed designated
location at no additional cost or fees or expenses to LIC. Installing/commissioning the
upgrades / new versions/ new releases of software at the designated locations/changed
designated location at no additional cost or fees or expenses to LIC
 Unscheduled, on call, corrective and remedial maintenance and support services

 The Bidder shall use its best efforts in remedying any program error. All Program Errors shall
be reported in accordance with the procedure prescribed in respect thereof and shall be
accompanied by sufficient information including the input data that generated the program
error so as to enable the Bidder to reproduce and verify the reported program error. On
receipt of request together with all such information and data the Bidder shall use all-out
efforts, consistent with the severity of the program error, to remedy such program error
which is within the purview of the system logic, that it has been able to reproduce and
verify. Such remedies may include providing instructions to LIC to cure the program error or
delivering updates at no additional cost. The Bidder warrants that any or all program errors
that are reported will be remedied
 In the event, the Bidder determines that the error reported/ problem notified in the support
request in not a Program Error, it shall advise LIC whether it can correct or assist in resolving
such error/problem on a best effort basis
The following documentation, at a minimum, shall be prepared by the Bidder and included in the System
Maintenance and Support Plan provided to LIC:
i. Development of a system support structure and organization, including estimates of
manpower requirements to support operation and maintenance of the system
ii. System Installation and Administration Manual
iii. Completed Code
iv. System troubleshooting and system tuning procedures
v. System administration procedures, such as file management and code management
vi. Operating Procedures Manual: Includes Diagnostic procedures, backup and restore
procedures, batch and online processing procedures, monitoring procedures and disaster
recover procedures
vii. Maintenance Manual: Information to aid in analyzing and debugging the software, apart
from information already available in other delivered documentation
viii. Updated system architecture diagrams and inventory (systems, servers, etc.) that clearly
identify what is in production use
ix. Solution Database Schema
x. Complete Data Dictionary
8.16.1 Application Support and Hardare System Maintenance

LIC shall have one integrated help desk for all the initiatives being run by the corporation. This
helpdesk shall be the Single Point of Contact (SPOC) for all business and IT services staff. This
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helpdesk will be the central collection point for service staff contact and control of the problem,
change, and service management processes. This includes both incident management and service
request management. The support (L1, L2, L3) should be available from the day the new application
goes Live at any of the P&GS Units/Offices. Necessary application life cycle tools will be deployed
by the bidder.
Application support will be active for 12 hours per day from 8:00 am to 8:00 pm with provision for
extended hours ( 2 to 4 hours a day ) at fortnight/month/year end - exact modalities will be
decided with mutual consent at the time of go-live phase. Application support will be required for
all days when data centre and/or near-DR/remote-DR centres will be actively working. These
centres/facilities will be working on all week days from Monday to Saturday. Calendar for holidays
for these centres/facilities will be released by LIC at the beginning of go-live phase for the calendar
year current at that time, and before beginning of every calendar year thereafter. This arrangement
is subject to review depending upon change of working hours/days for LIC in general, or when
necessitated due to statutory provisions in applicable laws.
The Bidder will have to service, track and route requests for service and to assist end users in
answering questions and resolving problems related to the P&GS application and covering basic
functionality, hardware, network, DC, DRC, etc at all the units & offices. This will be the first level of
support (L1).
It is also expected that a second level of centralized support (L2) also be maintained from where
the various zones/units/offices can be serviced in case of problem escalation. If a problem is not
resolved by telephone and the End User declares the problem to be of an emergency nature, the
Bidder shall dispatch a representative/support personnel/Engineer who will provide Desk Side
Support Service according to service levels given.
L3 support will be for critical code level changes or application failure related issues. This support is
required for all components that are expected to be provided by the Bidder as part of this RFP.
The Bidder has to provide the resolution / service as per the defined service levels. The Bidder has
to make sure that the methodology proposed for addressing and resolving problems is aligned to
the required and defined service levels.
The Bidder should staff persons in support who are conversant with the solutions deployed and are
capable of resolving routine problems and queries through the service desk application or over the
phone.
Type of Support Minimum number of resources

L1 16
L2 8
L3 4
HW System Engineer 2
1. Level One (L1) Support
a. Will serve as the front-end for all users and provide services request sorting, information
and non-functional information, ticket routing for support of the Application
b. L1 would typically address queries and all end user issues pertaining to:
 Business application related issues/queries,
 Operating System (Windows, Linux & Unix), Printing, Generic IT Queries
 Queries related to business process

 Other environmental software such as office automation tools etc.
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c. The key activities that the Bidder is expected to perform as part of Level 1 Support are:
 User Management
 Creation or modification of user profiles
 Assessment in case of specific rights assignment
 Provision for assigning user rights only for certain fixed period
 Categorization of requests into functional clarification, bug or change request
 Functional clarification / work around to be provided by Level 1 support itself
 Bug change requests to be logged and reported for further processing
 Provide telephonic and / or electronic mechanisms for problem reporting requests as

well as for service and status updates.
 Escalate/assign unresolved issues for L2 support
d. The Bidder should have a minimum of 16 full time resources in L1 support. LIC reserves the
right to increase or decrease the number resources in L1 support depending on its
requirements at LIC. The Bidder is expected to quote a per resource for L1 support, which
shall be used in case LIC orders for lesser or more number of resources for L1 support. The
Bidder should also note that the setup for L1 must provide for 1 supervisor and/or 1 support
personnel from LIC. LIC expects the Bidder to provide for L1 support for all activities and
services that are part of scope
2. Level Two (L2) Support

LIC expects the Bidder to provide for L2 support for all activities and services that are part of the
scope. The L2 support provided by the Bidder should be comprehensive and cover entire
management and support of the Application developed and implemented by the Bidder. The
expected indicative services are as below;
a. Provide continuous onsite support for the application being implemented
b. Performing and troubleshooting End of Day, End of Month, End of Quarter and End of
Year activity
c. Resolve calls within stipulated timeframe as defined in Service Level Agreement
d. Provide on-site trained personnel in each L2 shift, having adequate exposure and
background on the solutions for problem handling and resolution
e. Coordinate with the L3 teams for resolution and provide necessary information as may
be required by the team to resolve the issues
f. Escalate the unresolved calls as per escalation matrix

g. Provide the timeframe for providing a solution of resolution of the escalated calls
h. Prepare a root cause analysis document with the resolutions provided for major issues
such as:
 Problems which have resulted in complete service disruptions or downtime
 Critical production issues such as inconsistent accounting or system behaviour
 Delayed response times
 Data / table corruptions
 System Performance issues (high utilization levels)
i. To decide on preventive maintenance schedule with LIC

j. Liaise with the L1 support personnel for the call information and resolution
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k. Modifications to existing scripts, reports, due to errors / technical faults
l. Present to the LIC management on the critical issues reported, resolved, solution
provided and the suggested recommendations or leading practices as and when asked
by LIC or on a monthly basis whichever is earlier.
m. Provide recommendation on performance tuning of the application
n. Perform the application audit on a half yearly basis
o. Rectify any corruption in the software
p. Ensure patch releases are ported to the production environment with no business
disruption or business losses
q. Perform application replication across the Data Centre, Disaster Recovery site and Near
Site to ensure zero data loss
r. Provide application support from LIC‘s data centre
 The Bidder is expected to act upon the tickets routed from Level 1. The Bidder must
ensure proficient and professional personnel are put to handle the L2 support and
resolutions are provided on a proactive basis
 L2 agents are expected to address issues/queries related to the business application.

L2 agents will need to assess the cause of the issue and accordingly resolve the same
within the timelines mentioned in the SLA. The agents would also need to track
problems from initial call to restore to service
s. The Bidder should have a minimum of 8 full time resources in L2 support. LIC reserves
the right to increase or decrease the number resources in L2 support depending on its
requirements at LIC. The Bidder is expected to quote a per resource for L2 support,
which shall be used in case LIC orders for lesser or more number of resources for L2
support. The Bidder should also note that the setup for L2 must provide for 1 supervisor
and/or 1 support personnel from LIC. LIC expects the Bidder to provide for L2 support
for all activities and services that are part of scope
t. All other activities as would be required by the Bidder to manage and maintain the
solutions.
3. Level Three (L3) Support

Brief description of the envisaged activities to be performed by SI at L3 is enumerated as under.
The services specified herein are not exhaustive and are only indicative.
a. Resolve the call within the stipulated timeframe as defined under the service level
agreements
b. Communicate the status of the call to LIC and accordingly update the status, resolution
or workaround and date of resolution in the appropriate tool
c. Prepare a root cause analysis document for issues referred to L3 support and provide to
LIC along with the resolution
d. Liaise with the L2 support personnel for the call information and resolution
e. Provide version upgrades
f. All other activities as would be required by the Bidder to manage and maintain the
application
g. The Bidder should have a minimum of 4 resources in L3 support
4. Hardware System maintenance
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8.17 Continuity of Operations
The selected Bidder must provide a methodology for resumption of applications, data, hardware,
communications (such as networking) and other IT infrastructure related to the P&GS application
in the event of a disaster. The disaster recovery plan will provide for a near DR site on active-active
basis and a remote DR site on active-passive basis. The near DR will be located at Mumbai and the
remote DR site is likely to be located at Bangalore. The methodology must also address activities
for the prevention and detection of an event and the regular testing of these controls and
strategies to ensure the protection of data.
The Bidder must develop a Business Continuity and Disaster Recovery Plan that provides for
adequate backup and recovery for all P&GS operations, both manual and automated, including all
functions required to meet the backup and recovery. In the Disaster Recovery Plan, the Bidder
must identify every resource that requires backup and the extent backup is required. DR drill
should be done once every 6 months. In addition, the Bidder must identify the software and data
backup requirements. The plan must include at a minimum the following:
• Recovery procedures from all events ranging from a minor malfunction to a major disaster
• Checkpoint/restart capabilities
• Retention and storage of backup files and software
• Hardware backup for the main processor
• Application and operating system software libraries, including related documentation
• Identification of the core business processes involved in the P&GS application
• Documentation of contingency plans
 Definition of triggers for activating contingency plans
• Plan for replacement of hardware and software
An indicative list of activities to be performed by the selected Bidder is mentioned below:

1. Designing and implementing adequate data backup, business continuity and restoration
procedures for the application data (including but not limited to the database, attachments
and all other data elements created in and generated by the application and users)
2. Ensuring that there is no single point of failure and adequate level of redundancy is built in
to meet the uptime and other requirements of this RFP.
3. Ensuring data backup till the last transaction occurring in the application to ensure
enhanced service levels and following RPO and RTO objectives:
During Business Hours During Non- Business Hours
RTO RPO RTO RPO
10 mins 15 mins 2 hours 2 hours
4. Any storage space / media required to maintain backups and other requirements of the RFP
should be provisioned for by the selected Bidder in his Bid.
5. Designing and implementing data synchronization procedures for the DR Site. Periodic
testing may be done to ensure that all replication and data synchronization procedures are
in place all the time. Replication between Data Centre and DR Site as well as change-over
during disaster should be automatic and real-time for minimal impact on user experience.
8.18 Data Backup and Archival

The Bidder is expected to propose an approach to Data Backup and Archiving designed to support
multiple layers of data backup protection using a combination of both disk based and tape based
technologies to meet the proposed system backup and recovery requirements. At any given point in time,
all the data must be maintained in the Data Archival Solution for business continuity requirements. Users
must be allowed to query historic data. Archival policy should ensure that there is no loss of data. It must
be possible to restore the archived data for specific queries by the users.
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8.19 Performance Benchmarking
The Bidder may be asked to perform the benchmark for the purpose of this project, incorporating the
proposed technology architecture for the P&GS application. The Bidder will have to do a benchmark on
the hardware proposed for the P&GS application. Benchmark needs to be validated & reported by
reputed independent third party who has the experience of reporting performance benchmark specific to
the Core Insurance application designed by the Bidder with due concurrence of LIC.
The Bidder will have to perform a product benchmark at the benchmarking centre as identified by the
Bidder in the presence of LIC employees and it‘s appointed representatives. The objective of this exercise
is to demonstrate that the proposed hardware meets the sizing requirements and provides the required
service levels in terms of number of the necessary transactions per second (TPS), user concurrency,
Business Volumes and Growth Projections, along with the necessary number of concurrent transactions,
total number of transactions in a 4 hour window, time taken for End of Day, batch processing and meet
the required response time as expected by LIC. This benchmark should be carried out on the proposed
hardware with the proposed version of the operating system, proposed version of the database system
and the proposed version of the application system. The benchmark must include at a minimum the
following:
• Identification of any automated tools that will be used in performance and stress testing
• Performance testing will check for the availability and capability of system resources including
items such as Central Processing Unit (CPU), memory, network, etc.
• Bidder will measure response times, transaction rates, and other time-sensitive requirements
• Volume testing to verify that the application performs correctly and is usable with production
volumes of data
• Stress testing to verify the applications behavior under conditions that overload its resources
• The results of this test must be provided for validation and verification of the tests performed
Bidder will be responsible for the following
 Performance, Volume and Stress testing strategy and planning

 Tool selection
 Script generation
 Performance, Volume and Stress test execution. As part of test execution the vendor needs to
capture the following parameters;
 Response times
 Throughput
 Application server monitoring
 Data base monitoring
 Test data preparation
 Analysis & Report
 Infrastructure like network and bandwidth utilization is part of the scope which must conform
with the sizing as provided by the bidder in Annexure XVI.
The benchmarking exercise should be successfully completed prior to go – live of the first pilot Unit and
immediately after UAT.
 The Bidder should factor all the necessary costs for the benchmark, including the travel,
lodging, meals for LIC personnel and it‘s appointed Consultant. Thus we suggest the Bidder to
consider 5 to 6 LIC Authorized personnel for this exercise.
 Any expenses (performing the benchmark, travel, stay, etc.) incurred for the same would be
borne by Bidder and under no circumstances the same would be reimbursed to the Bidder by
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LIC. The Bidder is expected to factor the all expenses linked to the benchmarking in the Bill of
Materials.
The Bidder shall ensure that the solution provided and sized by the Bidder is capable of meeting LIC‘s
current and terminal year transaction and business volumes. Empirical evidence of the appropriateness of
the server sizing by means of comparison with independently assessed benchmarked data on a similar
environment as proposed to LIC will be mandatory. The Bidder has to provide all necessary supporting to
LIC to prove that the Solution sizing is appropriate
8.20 Training
The selected Bidder shall be responsible for training LIC employees (as identified by LIC) in the areas of
implementation, operations, management, error handling, system administration etc on the application.
The bidder will be responsible for Training of LIC‘s in house technical teams on all the aspects of
solutioning, development, and support functions. This should be a continuous process and should not be
a onetime activity as a part of the knowledge transfer/ handover exercise. Bidder will have to plan activities
around these trainings.
The types of trainings that the Bidder is expected to provide are:
 Executive Awareness Program

 Core Team Training
 Technical Training
 End User Training
The training should cover the following areas:
 Functionality available in the application;

 Application architecture and development;
 Impact Analysis;
 Auditing techniques;
 Advanced trouble shooting techniques;
 Deployment of various products / packages provided as part of the application including the
delivery Channels;
 Techniques of generating various MIS reports/dashboards from the application
 Development and deployment of new products using the application;
 System & Application Administration at various locations to use off-line functionality.
 Production support and trouble shooting
LIC will be responsible for identifying the appropriate personnel for all the training requirements.
The Bidder is expected to conduct the following Trainings;
Sl. No. Training Type Audience Min. No. of Days/ Batches No. of
Weeks per Batch Trainees per
batch
1 Executive Awareness LIC Management Team 2 days 2 20
2 Core Team training Core Project Team 3 weeks 3 20
3 End User Training Business Users at P&GS 1 week 100 20
Units/ Zones and
Offices
4 Technical Training LIC‘s software 2 weeks 2 15
including OEM development team and
Training support staff
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a. LIC expects all trainings to be conducted from its premises or as may be mutually agreed.
b. The Bidder will be responsible to install the required applications / systems, training server at
DC and also ensure connectivity to the training server, for the purpose of training at the training
centres and the Learning Management System, if required. The training environment at the data
centre should at a minimum support 30 concurrent users and 5 concurrent for the Support
applications. LIC expects the training environment to be available at all times, for the purpose of
training. The infrastructure for training will be made available by LIC.
c. The Bidder will impart training to 100% of the Unit end users on the application prior to the
Unit / office going live. The Bidder must ensure that proficient personnel conduct the training at
the respective training centres identified for the same. The Bidder should ensure that the end
user training is scheduled and completed at least a week prior to the Unit / office going live.
d. The Bidder will be responsible for providing the users with the requisite training material in
both hard, soft copies, e-learning courseware at least for the core team training, technical
training, end user training and train the trainers. The onus of preparing the training material will
be on the Bidder.
e. The Bidder will also be responsible for creating the training material for the Learning
management application which would be reviewed and signed off by LIC. The content should
be kept up-to-date at all times. The content should be updated for every modification
throughout the tenure of the contract.
f. The Bidder will be responsible for preparing, circulating and collecting training feedback forms
from the participants.
g. The feedback forms will be prepared by the Bidders, reviewed and given to LIC. The changes, if
any, suggested by LIC should be incorporated and implemented by the Bidder.
h. The Bidder will provide a detailed training schedule to LIC for review and sign – off prior to
commencement of the training including the training material.
i. The Bidder needs ensure that the trainers have adequate domain knowledge, a minimum two
year work experience and sufficient experience on the application being developed (or similar
application).
8.21 Knowledge Transfer

The selected Bidder must propose methods to develop and deliver both knowledge transfer and related
documentation and must include an understanding of LIC‘s knowledge transfer requirements and high-
level knowledge management strategy. The knowledge management plan should address, at a minimum,
the knowledge transfer requirements for business users, technical staff for both pre- and post-
implementation periods including a description of how the Bidder plans to transfer the knowledge
necessary to further develop, maintain, and support the applications to LIC or other any other vendor as
may be appointed by LIC.
 The selected Bidder will have to create a comprehensive Knowledge Management Plan to
document the plan to train all staff, which includes business users, technical teams, other
vendors and system integrators. This plan must include at a minimum:
o Description of the group(s) who will receive knowledge transfer and objectives/expected
results of the knowledge transfer
o Approach to providing knowledge transfer during the development, system integration

testing, user acceptance testing, and implementation tasks of the project
o Written methodology for resolving system problems, including troubleshooting

techniques, problem identification and tracking, and problem resolution
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o System documentation and other resources required to familiarize LIC P&GS staff with
the System, produce training materials, and provide the actual knowledge transfer
o Develop a hands-on knowledge transfer program and classroom training materials
o Provide system documentation, onsite support, and other resources to familiarize trainer
with the System and post-implementation training staffing
 The selected Bidder will be required to provide necessary handholding and transition support
to designated staff or any other agency that is selected for maintaining the application post the
Contract with the selected Bidder. The handholding support will include but not be limited to,
conducting detailed walkthrough and demonstrations for the design, development and
architectural details, IT Infrastructure, handing over all relevant documentation, addressing the
queries/clarifications of the LIC staff/ new agency with respect to the working / performance
levels of the infrastructure, conducting training sessions etc.
 Knowledge Transfer is an integral part of the scope of work of the selected Bidder. This will
have to be done even in case the Contract with the Bidder ends or is terminated before the
planned timelines.
 Any other activity, over and above these, as may be deemed necessary by the selected Bidder
to meet the service levels and requirements specified in this Contract, are also required to be
performed by the selected Bidder at no additional cost.
8.22 Reverse Transition

Reverse knowledge transfer/ reverse transition process involves defining a seamless process for
transferring knowledge of all applications of the project, without compromising on the committed
timelines for the release and support of the applications. The Bidder will be responsible for reverse
transition to LIC or the Vendor as appointed by LIC in the event of termination of the contract. During this
period of Reverse Transition, the Bidder shall continue to provide the Deliverables and the Services in
accordance with this tender and subsequent Agreement/Contract and shall maintain the agreed Service
levels.
Reverse Transition Services are the services provided by Bidder to LIC during the reverse transition period
which will start after completion of the notice period to facilitate an orderly transfer of the Services to LIC
or to an alternative third partly service provider nominated by LIC.
The Reverse Transition Services, to be provided by the Bidder to LIC shall include the following:
a) Software
The Bidder shall provide appropriate training to LIC‘s personnel or its designee(s) to enable them to
maintain the Software provided under this RFP and subsequent contract. Bidder shall ensure that if any
data migration is required, the same shall be carried by the Bidder and a handover to be provided for the
smooth transition of the operations.
b) Knowledge Transfer
The Bidder shall provide such necessary information, documentation to LIC or its assignee, for the effective
management and maintenance of the deliverables under this RFP. Bidder shall provide documentation (in
English) in electronic form of all existing procedures, policies and programs required to support the
services. Such documentation will be subject to the limitations imposed by Bidder‘s Intellectual Property
Rights of this RFP and shall include:
• Operational work instructions
• Listing of all events being monitored and the monitoring frequency
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All trainings that LIC feels are necessary to be imparted to LIC or its designees‘ personnel.
c) Warranties
All the warranties held by or in the name of the Bidder shall be assigned or transferred ―As Is‖ in the name
of LIC. The Bidder shall execute any and all such documents as may be necessary in this regard.
The parties shall return confidential information and will sign-off and acknowledge the return of such
confidential information.
Bidder shall provide all other services as may be agreed to by the parties in connection with the reverse
transition services. However, in case any other services, in addition to the above are needed, the same
shall be scoped and priced. Reverse transition services shall be charged based on Bidder‘s then current
time and materials rates.
The Bidder recognizes that considering the enormity of the assignment, the transition services listed
herein are only indicative in nature and the Bidder agrees to provide all assistance and services required
for fully and effectively transitioning the services provided by the Bidder under this tender and subsequent
agreement, upon termination or expiration thereof, for any reason whatsoever.
The cost for reverse transition if any should be part of the Commercial Bid and deemed to have been
included in the total consideration of the Bid.
8.23 Project Documentation

The bidder shall create and maintain all project documents that shall be passed on to LIC as deliverables
as per the agreed project timelines. The documents created by the bidder will be reviewed and approved
by LIC.
The bidder shall share a list of deliverables that they shall submit based on the methodology they propose.
The bidder shall prepare the formats/templates for each of the deliverables upfront based upon industry
standards and the same will be approved by LIC prior to its use for deliverables.
All project documents are to be kept up-to-date during the course of the project. The bidder shall
maintain a log of the internal review of all the deliverables submitted. Soft copy of logs shall be submitted
to LIC on regular basis.
Selected bidder is required to use standard project management tools such as precedence diagrams,
critical path charts, etc. to create and manage implementation plan and schedule.
The table below shows the minimum stages, activities and the associated deliverables for each stage:
Stage Activities Deliverables

Project Planning  Project Planning and Management  Project Management Plan
 Project Quality Assurance  Weekly and Monthly
 Documentation of Project Plan Status reports
 Project Status Reporting
Project Assessment  Change Control Mechanism  Issue Register
and Quality Control  Issue Management  Updated Project Plan
 Scope Management  Change Request Forms
 Inclusion of measurable actions to gauge success  Risk Reporting
 Inclusion of specific steps to manage the  Quality Assurance Plan
corrective action plan process to acceptable
resolution
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 Steps to identify risks that develop during the
project are documented
 Methods to analyse and determine priority of
risks
 Maintenance of Risk Register
 Documented perspective of lessons learned
 Integrate lessons learned into future project
activities
 Updation of Project Plan
 Clear Description of what was changed in the
Plan
 Create a Quality Assurance Plan
Business and  In-depth analysis of existing business, system,  Business Requirement
Functional and user requirements Specification
Requirements  Resolution of all outstanding issues related to the  Requirement Validation
Analysis requirements and Traceability Plan
 Document final set of business requirements  Software Requirements
 Define and document Functional Requirements and
 System study for Data Migration Preparation Specifications Document
 Data Migration Preparation  Data Migration Plan
System Architecture  Document a preliminary set of business rules and  Conceptual Architectural
Design workflows system Design
 Conceptual Architectural system Design
Methodology
 Develop a strategy to ensure a final integrated
design
 Documentation of a comprehensive design style
guide
 Prepare and develop strategy for design session
results and validation of these results
Detailed Design  Develop the final version of the Detailed Design  Detailed System Design
specifications Document
 Detailed Software Solution  Documents for Software
 Architecture design and Hardware solutions
 Detailed Hardware Solution  User Interface Design
 Data Schema design  Specifications
 User Interface Design  Integration Design
 Identify and analyse business rules Specifications
 Documentation of the System Integration  Data design and migration
Strategy Plan
 Documentation of the risks and mitigation
strategies for integration
 Prototyping design and Validation
 Resolution of all outstanding issues related to the
design
 Documentation of a complete, comprehensive
design that is ready for development
Development and  Document the software development methods  Software Development
Integration  Software installation, configuration, and Plan
customization  Weekly Development
 Verification and validation of system integration Report
 Conduct the development tasks  Development Library
 Documentation of the major products and  Updated Design
deliverables developed, delivered, or updated in Document
the Development Activity  Installed software and
 Prepare a Weekly Development Summary Report hard-ware details
 Maintain a change control process to document  Issue Report
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discrepancies and their resolution, and to manage
changes to programs and libraries
 Creation and management of a Development
Library
 Document the System Integration Strategy
 Document controls for error handling
 Provision of comprehensive reports and
identification of all tests performed
Implementation  Conduct ongoing reviews of the hardware and  Application
software performance and reliability to determine Implementation Plan
if hardware requires additional capacity  Readiness Assessment
 Monitor and ensure hardware and software Report
requirements mentioned in the Commercial Bid
meet or exceed the service level agreements
 Develop implementation strategy
 Create procedures and processes for
implementation and co-existence
 Certify that the application , its domains,
functions, data, processes, operational
procedures, staffing and all other associated
support are in operation
 Chart contingency plans
 Resolution of all issues
 Approval from Project Team to move to the
Implementation phase of the project
Testing  Develop a strategy for testing the application  Master Test Plan
processes and creating test environments for all  Use Case
levels of testing System Testing  Unit and Integration Test
 Create tests scripts based on comprehensive Plan
detail design documentation, functional  SIT and UAT Test Cases
specification documentation  Problem reporting
 Document detailed steps required to conduct the  Data Migration Testing
unit test, including expected results reports
 Develop the criteria for promotion from unit to  Performance Monitoring
integration test Plan
 Integration Testing  Performance, Volume and
 Demonstrate readiness for UAT Stress Testing reports
 User Acceptance Test  System Test Scripts
 Completed Test Cases  Weekly Report
 Data Migration tests  Operational Readiness
 Stress Testing Report
 Load Testing
 Performance Testing
 Make recommendations for changes to hardware
or software requirements to improve
performance
 Documentation of the knowledge transfer
materials that will be used to provide orientation
and kickoff for testing
 Identification of the tools and reports that will be
used to support all testing efforts
 Steps to ensure any design changes are reflected
in the system test scripts
 Resolution of all issues identified as design issues
 Resolution of all defects that prevent completion
of test scripts
System  System Incident Resolution  System Maintenance and
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Maintenance  Adaptive Maintenance Support Plan
Support and  Application Enhancements  System Incident
Operations  Minor changes, bug fixes, error resolutions and Resolution report
minor enhancements  Adaptive Maintenance
 Application Upgrades and updates report
 Apply regular patches to the licensed software(if  Application Enhancements
any) report
Training and  Documentation of the Knowledge Management  Knowledge Transfer and
Knowledge Transfer Strategy training plan
 Documentation of the approach for evaluating  Training and Instructional
the effectiveness of the knowledge transfer and Material
improvement plan Training courses and  Application User Manual
sessions  Online user Aids
 Documentation of the train-the-trainer strategy
 Develop knowledge transfer program and
classroom training materials
 Conduct Trainings as per the details provided in
the RFP
 Develop a methodology for reporting, reviewing,
and improving knowledge transfer
 Collect and monitor Training Feedback
8.24 Acceptance Criteria and Sign-off Framework

The project will be deemed complete only when all the solutions and items contracted for by LIC are
delivered in good condition, installed, commissioned, implemented, tested and accepted along with the
associated certification, documentation and training provided to LIC‘s employees in compliance with the
terms of this RFP and as per the requirements of the contract executed between LIC and the Bidder and
the acceptance criteria defined in this document is met.
All Bidder deliverables will be subject to review by LIC prior to final approval, acceptance, and payment.
LIC will accept or reject the deliverables in writing. In the event of the rejection of any deliverable, the
Bidder shall be notified in writing giving the specific reason(s) for rejection. The Bidder shall have five (5)
working days to correct the rejected deliverable and return it to LIC. All the deliverables must be tracked
and maintained in the Enterprise Project Management Tool, access to which would be provided to the
selected Bidder at the time of on boarding.
8.25 Independent Performance Audit

LIC plans to proactively manage critical risk associated with Performance, Availability and Scalability
failures of the P&GS application. Failures to manage these critical risks can lead to undesirable situations
such as P&GS Units and offices not being able to transact. This can result in Financial Losses, Management
Reputation damage, Employee issues, and lost business opportunities.
As part of LIC‘s risk mitigation strategy LIC may engage services of an Independent consultant – who can
provide Independent and Expert Reviews on the application as developed, deployed and maintained for
the use of LIC by the bidder.
The independent consultant may perform the following activities throughout the tenure of the Bidder‘s
agreement.
Following are the details of the scope:
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Activity #1- Periodic Independent Architecture review with a focus on Performance, Availability &
Scalability
Key Coverage areas –
 Deployment Architecture Review

 Review of integration layer
 Message formats
 Message size
 Compression of messages
 Message parsing
 Identification of known performance anti-patterns in design
 Caching and compression of data at relevant components
 Application caching (web and application layer)
 Database caching
 Browser caching
 Evaluate Possibility of parallel processing of transactions
 Identification of contentious blocks – synchronization
 Identification of Failure points and its impact on performance
 Interaction between components (message parsing, message creation etc.)
 Transaction Management
 Resource Management (threads, connection, instances etc.)
Activity #2- Progressive Independent Performance audit and Optimization of application and their
execution environment
Key Coverage areas
 Review of the application design from performance standpoint

 Holistic review across technology stack shall include but not limited to following areas:
 Application Server Review & Analysis
 Configuration Review
 Code Review
 Thread dump Analysis
 Connection Pool Configuration Review
 Thread Pool Configuration Review
 Instance Pool Counts
 Memory Management analysis
- Heap Dump Analysis
- Memory Histogram Analysis
- Garbage Collection Analysis
- Configuration Review and Analysis of Application Memory
 Review and Analysis of Database
 Database instance level configuration analysis
 Database Sizing according to work load modeling and business forecast
 SQL Analysis
 SQL Tuning
 Database Code Optimization
 In-depth review of other areas like Web server, Load Balancer, Networks and Storage
Activity #3- Functional Review
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Key Coverage areas
 Study the implemented functionality of the solution and to ensure correctness of functionality
of each module and all modules in totality as per the rules and guideline procedure of LIC and
the regulators.
 Study the application for adequate input, processing and output controls and conduct various
tests to verify existence and effectiveness of the controls.
 System processing logic
 Review the system inbuilt and configured logic and ensure that the calculation is
performed as intended by LIC
 Review that logics are built in accordance with LIC‘s requirements
 Understand the logic and flow of the automated calculation and re-perform the
calculation outside the system to ensure that calculations are performed accurately by
the system as intended by LIC
 Conduct various tests to verify existence and effectiveness of the controls for all
functionalities, schemes and products supported by the applications under review
Activity #4- IT General Controls Review
 Logical Access –
 Review of user management procedures at Application, Operating System and
Database Levels
 Review of privileged access rights granted to application and system administrators
 Review of account and password policy controls
 Physical & environmental Access Controls –

 Review of the procedures implemented at the Data Center (DC) / server rooms
 Assess the critical assets for Environmental Management system.
 Change management process & system documentation –

 Review the program change management with respect to policy & procedures.
 Review the procedures for requesting, development, testing and implementing
changes.
 Review the process for monitoring program modifications.
 Review segregation of duties.
 System Maintenance –
 Review of Annual Maintenance Contracts (AMCs) / Warranties, Service Level
Agreements(SLA)
 Event & application Log maintenance –

 Review the policies and procedures adopted for reviewing and following-up activity
logs
 Backup & recovery process–

 Review Backup related Policies & Procedures and compliance thereof.
 Incident Management –
 Review Incident Management related Policies & Procedures and compliance thereof.
 Exchange of Information –
 Review the interparty communication controls relating to exchange of information.
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 Business continuity management –
 Review the Business continuity management related Policies & Procedures and
compliance thereof.
 Compliance –
 Perform compliance review vis-à-vis IT regulatory requirements provided by the AMC.
 Interfaces -
 Interface of core Software with other applications.
 Validation of interface files before upload.
 Security considerations in data preparation, transit channels, handling and upload
process.
 Review of inter-dependency of application and interfaces, validation procedures
during day-end operations
 Reconciliation/ comparison before/after interface upload and handling of interface
rejections
 Duplicate checking
 Reporting controls
Any observation made by the independent audit team will have to be incorporated/ rectified by the Bidder
at no extra cost to LIC.
8.26 Ownership and Delivery
8.26.1 Ownership
The Bidder shall provide an exclusive, non-transferable, perpetual ownership for all the software
and the associated documentation to LIC post successful pilot of the application at the first P&GS
unit as a part of this project. LIC shall use the software/application at any of its current units and
office locations or units and offices as may be added in the future without restriction and use of the
software by service providers on behalf of LIC would be considered as use thereof by LIC. The
ownership would pass to LIC from the point the modification is made to the framework as brought
forth by the Bidder. All the code as developed by the Bidder will have to pass into escrow and be
handed over to LIC.
The ownership would specifically include;
A.To Use. (i) to use the executable code version of the Software and all Enhancements, Updates
and New Versions made available from time to time solely for business operations of LIC in India or
outside India (ii) to use the Program Documentation for purposes of installing or operating the
Programs and supporting the use of the Software by LIC; (iii) to use the technical Training Materials
for purposes of supporting users.
B. To Copy. (i) to copy the Software that operates on server systems to support the maximum
number of Users (ii) to make additional copies of the Program Material for archival, emergency
back-up, testing, or disaster recovery purposes; and (iii) to copy the Program Documentation to
support its Users.
C. To work as interface: (i) to work with other Application Software packages at LIC as interface,
details as provided in annexure VII; (ii) to allow other application software packages at LIC to work
as interfaces to the Software. If such interfacing requires any modification or change to the
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Software, such modification or change has to be carried out by the Bidder free of any additional
charge or fees or expenses.
The ownership of the software will ensure no restriction or limitation on the number of branches,
offices, locations, users, transactions, policies, claims, environments that the application can be
used or deployed at.
8.26.2 Delivery
a) The Bidder, at the time of installation shall deliver to LIC required copies of the source code
and object code version of the Software and the associated Program Documentation
including operation manual and training material
b) The Bidder is required to deliver the detailed technical design documents of the end state
solution deployed at LIC
c) The Bidder, after customization shall deliver to LIC required copies of the object code
version of the customized Software and the associated Program Documentation including
operation manual and training material
d) The Bidder, after modifications, updates or new versions shall deliver to LIC required copies
of the revised object code version of the latest Software and the revised associated Program
Documentation including operation manual and training material
e) The Bidder after developing workaround and customization codes outside the core software
application package shall deliver to LIC required copies of the source code and object code
version of the work around components and the associated Program Documentation
including operational manual and training manual
f) The Program Documentation shall consist of required number of User Manuals per
Unit/office, Data Centre, Disaster Recovery site and Near Line Site. The program
documentation shall be supplied by the Bidder to LIC both in hard copy and soft copy forms
(MS word format and HTML Browser format)
g) The operational manual shall be provided by the Bidder under help menu in the software as
dynamic online documentation/help files, wherever applicable
h) The object code version of the Software, executable and required run-time files shall be on
Compact Disc or on any such media as desired by LIC as may be applicable.
8.26.3 Rights
The Bidder shall ensure that the software/application as developed does not infringe third party
intellectual property rights. If a third party's claim endangers or disrupts LIC‘s use of the
software/application, the Bidder shall be required to, at no further expense, charge, fees or costs to
LIC,
(i) obtain a license so that LIC may continue use of the software/application in accordance with
the terms of this RFP and the Agreement and the license agreement; or
(ii) modify the software without affecting the functionality in any manner so as to avoid the
infringement; or
(iii) replace the software with a compatible, functionally equivalent and non-infringing product;
or
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(iv) refund to LIC the amount paid for the infringing software and bear the incremental costs of
procuring a functionally equivalent software from a third party within a reasonable period
determined by LIC at its sole discretion which would not affect the normal functioning of LIC.
8.27 Project Governance

LIC will put together a Core Project Team for review and monitoring of P&GS application design,
development and implementation. The Core Team may be consisting of Group and Pension Insurance
Subject Matter Experts, Technical Experts and/or External Consultants.
Each stage of the project will be monitored by the Core Project Team and it will be the responsibility of the
Bidder to seek sign offs on all artefacts submitted (details as provided under section 7. 22- Project
Documentation) to LIC at each stage of the project. Project Stage shall be deemed complete on the Core
Team Providing a written approval for the same.
Activity Responsible Accountable Consulted Informed

LIC Executive
Project Kick Off LIC /Bidder Bidder
Management
Bidder LIC Executive
Project Planning Bidder Core Project Team
Management
Project Assessment and Bidder Core Project Team LIC Executive
Bidder
Quality Control Management
Bidder Core Project Team LIC Executive
Project Estimation Bidder
Management
Business and Functional Bidder Core Project Team LIC Executive
Bidder
Requirements Analysis Management
System Architecture Bidder Core Project Team LIC Executive
Bidder
Design Management
Detailed Design Bidder
Management
Design Review Bidder
Management
Development and Bidder Core Project Team LIC Executive
Bidder
Integration Management
Implementation Bidder
Management
Testing Bidder
Management
System Maintenance Bidder Core Project Team LIC Executive
Bidder
Support and Operations Management
Training and Knowledge Bidder Core Project Team LIC Executive
Bidder
Transfer Management
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The following is a representative Governance Model;
Executive Management
(LIC + Consultant)
Program Management
(LIC + Consultant )
Project Management (LIC)

(Subject Matter Experts+ Technical Experts+ Consultant)
Vendor Project Director
Vendor Project Manager
Delivery Solution/Techno Lead Business Development Database

Domain Experts QA Lead
Manager logyArchitect Analyst Team Lead Experts
Test Executive Business Analyst Developers
Once the project is planned, the Project Governance Office (PGO) shall monitor the progress against the
plan to identify and resolve issues in co-ordination with the Vendor Team/s in a timely manner. For this,
the PMO shall gather the information needed. Corrective actions as identified for all issues will have to be
taken up by the bidder and the same shall be tracked to closure. Corrective actions may include re-
planning and establishing new agreements.
Identified tracking elements will be reviewed in their respective progress review meeting.
Step Activity / Task Description Responsibility

1. Provide status updates in the Status Tracker/MPP and share Vendor
issues/concerns
2. Monitor Project Planning Parameters: PGO, Vendor
Track project‘s work progress as against the plan.
 Monitor Progress against the planned Schedule
 Monitor the effort against Estimates
 Monitor the resources, staffing requirements, training needs and
skill level of the project team.
Identify significant deviations from plan(s) and document them
in the Issue Tracker.
3. Monitor Deliverables, Receivables and Dependencies: PGO, Vendor
 Review the deliverables, receivables and dependencies as
documented in the PMP and identify issues if any.
 Monitor critical path, critical resources and critical dependencies
closely
 Monitor all external and internal commitments and stakeholder
involvement.
Document identified issues in the Issues Tracker.
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Step Activity / Task Description Responsibility
4. Monitor Project Risks: PGO, Vendor
 Monitor & track risks on a continuous basis and at the end of
each phase/sprint.
 New risks identified during project execution need to be
included in the Risk Log and subsequently monitored and
controlled.
Share relevant Risks with stakeholders along with Status Report
(s).
5. Monitor Configuration Management and Change Request: LIC, PGO, Vendor
Provide change request and configuration audit related
information/data
6. Monitor and analyze the collected project metrics data as per PGO, Vendor
the Quantitative Goals and Metrics Plan
7. Prepare Status Reports and Conduct Reviews as defined in PGO, Vendor
Communication Plan.
In addition Scrum Meetings within Teams have to be
regularized.
8. Periodically Request for customer feedback PGO, Vendor
9. Provide process and product audit related information/data PGO, Vendor
10. Periodically upload all the Project best practices and other PGO, Vendor
artifacts to Process Database
Verification
 Senior Management reviews
 Technical Reviews
 SQA audits on work product and processes
 Configuration audits
Reference Checklist Template
Project Monitoring and Control Checklist  Weekly Status Report
 Status Tracker/MPP
 Issue Tracker
 Metrics Sheet
 Risk Log
 Program Status report
 Minutes of Meeting
The communication plan as prepared will capture all project communication needs of different project
stakeholders. All project reports required as part of contract must mentioned in communication plan such
as weekly status report, Monthly progress report etc.
Audience / Delivered Developed Distribution

Event Duration Activity Frequency Input
Focus by by Method
LIC
Provide a status of PGO Daily

Daily the daily planned Flash
E-Mail
Flash activities in line with Daily PGO PGO Update E-Mail
Update the project plan. Vendor from
Vendors
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Focus by by Method
LIC
PGO
Discuss the status
Program
along with the
Manager,
functional
Function 2Hrs 45 workstream leads Weekly PGO /
Project Project
al Status min from LIC and (Wednesd Vendor / PGO Meeting
Manager, Plan
Meeting Vendor on the ay) LIC
status of Business
implementation for Analyst,
the functional track
Technical
Leads,
Solution
Architect
LIC Weekly
Status Vendor to distribute Weekly
Status
update E-Mail the status (Wednesd
Vendor Vendor Vendor Report E-Mail
from document to the ay)
from
Vendor identified personnel
PGO Vendor
LIC
Executive
Status EY to distribute the
E-Mail Weekly Summary
update status document to Vendor
(Table (Thursday) PGO PGO -Weekly E-Mail
from the identified
Review) Status
PMO personnel PGO
Report
Status update
meeting to discuss
the overall progress
1.)
of the along with
LIC Project
the key
Plan
stakeholders/leads
Weekly from Vendor, LIC Weekly 2.)
Progress 2 hours and PMO. Vendor PGO PGO Meeting
Weekly
Meeting (Thursday)
Status
Agenda Items
Report
I. Project Status Vendor from
II. Issues Vendor
III. Risks
IV. Change Requests
V. Contingency
planning for
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Focus by by Method
delayed
activities/deliverable
s
9. Project Timelines
9.1 Project Implementation
LIC expects to Go Live within 16months of signing of the Contract and this would be the Launch Phase.
Data migration, testing and pilot launch should be planned accordingly.
9.1.1 Products
Indicative list of the products is provided in Annexure VII- Functional Requirement which are to be
made available at the end of 16 Months. Any other product that LIC would want to launch will be
scheduled for delivery post the Launch Phase.
9.1.2 Applications/Modules
The following functions/modules will have to be made available as per the instruction provided below:
Launch Post Launch

Sr. No Application / Functions
Phase Phase
New Insurance Application for Pension and Group Insurance
1 Multi Channel Access  
2 Rule Based Product Configurator  
3 Distribution Channel Configurator  
4 Contact / Party Inforamtion Management  
5 Underwriting and Quotation Management  
5.1 Underwriting Workflow Management  
5.2 Rating and Rules Engine  
5.3 Quotation Management  
5.4 Proposal Management  
5.5 Cost and Benefit Schedule  
5.6 Bulk Upload  
6 Policy Administration  
6.1 New Policy Issuance  
6.2 Policy Servicing / Endorsement Processing  
110
Launch Post Launch
Sr. No Application / Functions
Phase Phase
6.3 Policy Cancellation  
7 Annual Renewal Date Processing and Policy Renewal  
8 Agency Management  
9 Commission Processing  
10 Claims Management  
11 Reinsurance 
12 Investment 
13 Enquiry & Search  
14 Document Management (Generation/
 
Imaging/Scanning/Storage etc)
15 Workflow Module with Rules  
16 *MIS and Reporting  
17 Mass printing  
18 Security  
19 Performance management  
20 Batch Operations (Uploads/Renewal/ Printing/ etc)  
21 Accounting and Trial Balance √ √
Support Activities
1 BI & Reporting tools  
2 Integration with Enterprise wide applications (As mentioned in
 
Annexure VI)
3 Data Mining  
4 Data Quality  
5 Metadata Repository  
6 Payment Gateway  
*MIS and Reports pertaining to reinsurance and valuation can be considered in the Post Launch Phase
9.1.3 Unit Implementation /Roll Out Plan

(1) The application will be rolled out in a phased manner at all the P&GS Units/Offices as per
following table.
Office/ Unit wise Number of locations

Rollout
Central office 1
P&GS Zones 8
P&GS Units 74
Total number of 83
locations
(2) Number of launch locations may vary depending upon addition of new locations from time to
time
(3) LIC may decide to have additional implementation at Units or Zones. Details for the same
would be shared with the bidder and implementation modalities will be arrived at with mutual
consent
111
(4) For roll out post pilot phase, two zones will be taken up at a time. The application will be
implemented in all the units in the selected Zones. Once the application is stabilized in all the
units in the selected Zones, next pair of Zones will be selected and taken up for
implementation. Thus in four batches, the application is expected to be implemented at all
locations.
(5) Once a Launch location is taken up for implementation, the Bidder needs to provide hand-
holding support by deploying minimum of 2 full-time qualified personnel at the launch
location. The aforesaid support personnel shall remain available at the launch location for a
minimum of two weeks which period can be extended up to a time till the application is fully
stabilized for the launch location.
(6) Further, the bidder shall also provide an additional layer of resource team of minimum 4 full-
time qualified personnel to remain available at the Zonal Headquarter, or such other location as
may be mutually agreed, for the selected Zones. The Bidder‘s Resource Team at Zonal Level will
ensure trouble shooting during roll out at launch locations within the selected Zones. The
Zonal resource team shall remain available for at least 4 weeks from the commencement of roll
out of any location in the Zone and shall remain available until all location in the Zone are
stabilized and proper sign off is given by all individual launch locations in the Zone.
(7) At the end of the hand-holding period, the Bidder needs to obtain a sign-off from the
Unit/Zonal Office that problems raised have been satisfactorily addressed by the Bidder‘s
team.
(8) The roll out will be complete when roll out is completed for all locations and sign off is given by
all respective locations including Zonal/Central Office(s).
(9) The sign off for go-live phase will be at Central Office level and shall be the basis of warranty
period.
(10) All systems/modules and delivery channels scheduled for Launch Phase must be integrated
using a Service Oriented Architecture best practices through the Enterprise Service Bus
(ESB)/Integration Middleware during the Launch Phase.
10 Service Level Agreement (SLA)
10.1 P&GS Application Support Services
This Schedule describes the service levels that have been established for the Services offered by the
Bidder to LIC. The Bidder shall monitor and maintain the stated service levels to provide quality
customer service to LIC‘s customers.
112
A. Service Level Classification and definitions:
Level Type of Function / Technology Typical Response & Resolution

Infrastructure
I. Critical Business Any problem due to which the entire  During business hours -
system is inoperable. Within 1 hour
a. No user of any single  Non-business hours -

channel can access the Within 3 hours or earlier as
application or; per business hours, if
business hours begin
b. Any problem due to which
100 or more users cannot
access the application
II. Key Business a. Any problem due to which  During business hours -
the system is not entirely Within 2 hours
down, but some major
 Non-business hours -
functionality is, and no
Within 4 hours or earlier as
workaround for it is available
per business hours, if
or;
business hours begin
b. Any incident which is
classified as ―Critical‖ for
which an acceptable (by LIC)
workaround has been
provided or;
c. Any problem due to which

10 to 99 users cannot access
the application
III. Business a. Any incident due to which Within 8 hours

Significant some major functionality is
down, but for which a (for
LIC) acceptable workaround
has been provided or;
b. Any incident which is

classified as ―Key‖ for which
an acceptable (by LIC)
workaround has been
provided or;
c. Any problem due to which 1

to 9 users cannot access the
application
113
Level Type of Function / Technology Typical Response & Resolution
Infrastructure
IV. Minor Business  Others (To be mutually agreed)
 Enhancements
B. Service Level for the restoration for the application calls;
% of
# Service Measure Restoration Time [ Cost

Reference]
Within 1 hour during business hours

0%
Within 3 hours during non-business hours
Above 1 hour within 2 hours during business hours
3%
Above 3 hours within 4 hours during non-business
Support for Critical hours

A.
Level Above 2 hours within 4 hours during business hours
Above 4 hours within 6 hours during non-business 5%
hours
Above 4 hours during business hours

10%
Above 6 hours during non-business hours
Within 2 hours during business hours

0%
Within 4 hours during non-business hours
Above 2 hours within 3 hours during business hours
Above 4 hours within 6 hours during non-business 3%
hours
Support for Key
B.
Level
Above 3 hours within 6 hours during business hours
5%
Above 6 hours within 8 hours during non-business
hours
Above 6 hours during business hours

10%
Above 8 hours during non-business hours
C. Within 8 hours 0%
Support for
114
Significant Level Within 12 hours 3%
Above 12 hours 5%
D. Support for Minor

To be mutually agreed
Level
Where Cost reference is 1% of Total Project Cost.
C. Escalation Hierarchy and Matrix
The escalation hierarchy for LIC will be jointly decided by LIC and the Bidder once the Bidder is on
boarded. The indicative escalation hierarchy for the Bidder is illustrated below in the table. The Bidder
will propose the exact escalation hierarchy once it is on board.
Table 13: Escalation Hierarchy (Illustrative) Incident System Integrator

to be reported within (if unresolved)
2 hour Bidder Engineers

4 hours Bidder Project Manager
8 hours Bidder Project Director
16 hours Bidder Delivery Head
24 hours Bidder Country Manager
36 hours Bidder Country Manager
48 hours Bidder Region Head
D. Escalation Matrix
Elapsed Time Critical Key Significant Minor
To be resolved
Support
by (within 1 Support Engineer
Engineer
hours)
Support
LIC SPOC BIDDER - Project
2 hour Engineer
(P&GS) Manager Support
Engineer
Secretary
4 hours
(P&GS)
LIC SPOC (P&GS)
6 hours
Senior Support
10 hours
ED (P&GS) Engineer
Secretary (P&GS)
BIDDER - Project Senior Support
12 hours
Manager Engineer
115
LIC SPOC BIDDER - Project
18 hours
(P&GS) Manager
LIC SPOC
24 hours
(P&GS)
ED (P&GS) Secretary
(P&GS)
Secretary
48 hours
(P&GS)
60 hours ED (P&GS) ED (P&GS)
10.2 Service Levels
Service Levels will include Availability measurements and Performance parameters
A. System Availability
System availability is defined as:
((Scheduled operation time – system downtime)/ (scheduled operation time)) * 100%
Where:
1. ―Scheduled operation time‖ means the scheduled operating hours of the System for the year. All
planned downtime on the system would be deducted from the total operation time for the year to
give the scheduled operation time
2. ―System downtime‖ subject to the SLA, means accumulated time during which the System is
totally inoperable due to in-scope system or infrastructure failure, and measured from the time
Company and/or its customers log a call with the Bidder help desk of the failure or the failure is
known to the Bidder from the availability measurement tools to the time when the System is
returned to proper operation
3. The business hours will be as per LIC‘s working hours. The Bidder however recognizes the fact that
the Unit will require to work beyond the business hours on need basis, specifically during month-
ends
4. Response may be telephonic or onsite. In case the issue cannot be resolved telephonically, the
Bidder will need to provide onsite assistance within response resolution window
5. Service Levels should be complied with irrespective of the changes/customizations that the
application would undergo during the tenor of the Contract.
6. Typical Resolution time will be applicable if application is not available to LIC users and customers
and there is a denial of service
Availability Report will be provided on monthly basis and a review shall be conducted based on
this report. A monthly report shall be provided to LIC at the end of every month containing the
summary of all incidents reported and associated Bidder performance measurement for that
116
period. All Availability Measurements will be on a monthly basis for the purpose of Service Level
reporting.
Audits will normally be done on monthly/quarterly basis or as required by LIC and will be performed
by LIC or LIC appointed third party agencies.
i. Availability Measurements
Minimum Service Level

Type of Minimum Service Level
Measurement during non- business
Infrastructure during business hours
hours
Business Availability of Application and

99.5% 95.00%
Application supporting functions
The mechanism for monitoring the SLA would need to be proposed by the Bidder and agreed by LIC.
ii. Performance Measurements
Performance measurements will be done on monthly basis or as required by LIC and will be
performed by LIC or LIC appointed third party agencies. Bidder representative will assist LIC in
performing Performance Measurements.
Type of Measurement Minimum Measurement Cost

Infrastructure Service Level Tool Reference
Day – end, Time window for batch operations for 98% LIC to measure 1% of Total
the Insurance application to be 4 hours this through Project Cost
month – end,
excluding back-up time. periodic audits
year – end based on logs to

In case the time window for batch
be provided by
operations is exceeded the additional
Bidder
time will be considered for system
downtime calculation.
Day – end, During the batch operations the 98% LIC to measure
hardware utilization (CPU and this through
month – end,
memory) should not exceed 90% periodic audits 1% of Total
year – end based on logs to Project Cost

be provided by
Bidder
Day – end, However during these periods all 99.5% LIC to measure
offices/units operations should be this through
month – end,
available and there should be no periodic audits 1% of Total
year – end performance degradation at that time based on logs to Project Cost
be provided by
Bidder
117
System Response For Insurance Application – Support a 99% LIC to measure

Time peak transaction load of 745 this through
transactions per second on the new periodic audits 1% of Total
Insurance Application. based on logs to Project Cost
be provided by
Bidder
System Response End to end response time should be < 99% LIC to measure
Time 5 seconds (end user to insurance this through
application and back) periodic audits 1% of Total
based on logs to Project Cost
be provided by
Bidder
System Response Support concurrent users defined in 99% LIC to measure

Time the RFP this through
periodic audits 1% of Total
be provided by
Bidder
Hardware Hardware average daily utilization 99% LIC to measure

Utilization levels should be less than 70%. (CPU, this through
Memory, Cache, Hard Disk, NIC cards) periodic audits
excluding EOD / BOD processing time based on logs to
1% of Total
(Batch processing) be provided by Project Cost
Bidder
The minimum average utilization
should not be below 30% over a
period of 30 days
Disaster Recovery Business operations to resume from 100% LIC to measure

Site Availability Disaster Recovery Site upon Data this through
Centre failure as per RTO/RPO set out periodic audits
in clause 6.17 based on logs to
be provided by
Bidder 1% of Total
Project Cost
RTO RPO
During 10 Mins 15 Mins
Business
Hours
Outside 2 Hours 2 Hours
Business
Hours
118
Down time for Each planned down-time for 98% LIC to measure
servicing application, database and operating this through
system servicing, delivery channels and periodic audits
interface servicing (upgrades, bug based on logs to
fixing, patch uploads, regular be provided by
maintenance etc.) will not be more Bidder
than 4 hours. This activity will not be
carried out during business hours.
1% of Total
Project Cost
However, such activities which require
more than 4 hours or required to be
carried out during business hours will
be scheduled in consultation with LIC.
In case the downtime exceeds the
planned hours the additional time
taken for servicing will be considered
for infrastructure or system downtime.
System Security Number of security breaches: 0 100% LIC to measure

security breach this through
be provided by
Bidder
System Backup Zero Data Loss 100% LIC to measure

this through
be provided by
Bidder
Report Preview Response times for all report previews 100% LIC to measure
should be < 60 seconds in most this through
instances. It is understood that periodic audits 1% of Total
complicated / large volume reports based on logs to Project Cost
may require a longer period be provided by
Bidder
IT Policies & Compliance of the IT infrastructure to 100% LIC to measure

Procedures LIC‘s Policies & Procedures this through 1% of Total
Management periodic audits Project Cost
based on logs to
be provided by
119
Bidder
All logs to be as per LIC requirements.
10.3 Application Implementation
The SLA for Application Implementation (timely delivery of each milestone in the project plan,
reporting and resolution of bugs during testing phase) is to be mutually agreed between the Vendor
and LIC, based on the Project Plan.
Service Level Measurement Minimum Measurement Cost Reference

Description Service Tools
Level
Gap/Bugs/Defects All gaps observed in the functional 99% Manually Customization,

resolution specifications, current system study, Tracked
Implementation
training, business process re-engineering, during the
parameterization, testing and Launch testing
implementation shall be resolved within
defined and mutually agreed time
frames.
Gap/Bugs/Defects The Bidder shall ensure that all bugs 100% Manually Customization,
reporting reported by the users / testing team will Tracked
Implementation
be duly logged and assigned a unique ID during the
for reference purposes. testing
Critical The Bidder shall ensure that all bugs 100% Manually Customization,
Gaps/Bugs/Defects reported by the users/ testing team will Tracked
Implementation
/Showstoppers be resolved within 1 hour from reporting. during the
testing
Gap/Bugs/Defects The Bidder shall ensure that all bugs 99% Manually Customization,
resolution reported by the users / testing team will Tracked
Implementation
be duly resolved maximum within 3 during the
calendar days or as per the UAT testing
approach agreed between LIC and
Bidder.
Modification / The Bidder shall ensure that all 99% Manually Customization,
Enhancements modifications, enhancements reported by Tracked
Implementation
resolution LIC will be duly resolved as per the during the
agreed timeframes testing
120
Service Level Measurement Minimum Measurement Cost Reference
Description Service Tools
Level
Handholding The Bidder shall provide a minimum full 99% Feedback Customization,
time support staff at the Units as per the from Unit
Implementation
handholding requirements in the RFP.
Handholding
Any technical problems or errors faced
by the user will be resolved by the Bidder
within 4 hours of problem identification /
reporting.
Interface The Bidder will identify and develop 100% Manually Customization,
identification and interfaces to the existing / proposed Tracked
Implementation
development systems so as to meet the functional
requirements as per the RFP.
10.4 Availability Service Level Default
Availability Service Level will be measured on a monthly basis.
The Bidder‘s performance to Availability Service Levels will be assessed against Minimum Service Level
requirements for each criteria mentioned in the Availability measurement table.
Availability Service Level Default will occur when: The Bidder fails to meet Minimum Service Levels, as
measured on a monthly basis, for a particular Service Level
10.4.1 Availability Service Credit Computation
In the event of an Availability Service Level Default, the Bidder shall pay LIC an Availability Service
Credit that will be computed in accordance with the following formula:
Monthly Service Level Default = Minimum Service Level – Monthly Actual Service Level
Availability Service Credit = Monthly Service level default X Cost Reference, where cost reference is 1%
of Total Project Cost.
In the event that an Availability Service Level Default has occurred for more than one service level
requirement, the sum of the corresponding Availability Service Credits shall be credited to LIC.
The Bidder shall review with LIC, on a monthly basis from the start of Contract Execution, any
entitlement of LIC to an Availability Service Credit.
The total amount of Availability Service Credit that the Bidder is obligated to pay LIC shall be reflected
on the invoice provided to LIC. LIC shall be entitled to deduct the Availability Service Credit amount
from the amounts payable to the Bidder as per the invoice.
Example 1
121
Assume for a particular service level requirement (e.g. Availability of Key Application and Supporting
Functions), the minimum service level is 99% During a Service Assessment period; the service level
achieved is 96.5%.
Quarterly Payment Due = 90 Lakhs
The Availability Service Credit due to LIC would be computed as follows:
Minimum Service Level
Monthly Service Level Default = M1 = 99.00 - 96.50 = 2.5
Availability Service Credit for M1 = 2.5% * (90 Lakhs)
= Rs 2,25,000
Bidders have to note that the cost for AMC is exclusive of taxes for the purpose of computation of the
service level and service credit.
10.4.2 Service Level Agreement (SLA)
a) Deployment SLA: Applicable from the date of signing of the contract to the successful
acceptance of the deployment scope by LIC.
b) Technical SLA: Applicable during the User Acceptance Testing Phase.
c) Operational SLAs: Applicable from the date of acceptance of applications and till the
developed application warranty period.
d) SLA Monitoring Tool: Bidder will provide SLA Monitoring tool. The SLA Monitoring tool
should be capable of providing all the SLA Reports and monitoring, as required in the
RFP. It should be capable of providing SLA measurement for all the components being
delivered by the bidder.
The performance and support of the entire e-Business solution will be as per the Schedule of Service
Level Agreement mentioned below; failure to do so will attract penalties. If, at any time during the
performance of the Contract, the Vendor should encounter conditions impeding timely delivery of the
systems and/or Services, the Vendor shall promptly notify LIC in writing of the fact of the delay, it is
likely duration and its cause(s). As soon as practicable, after receipt of the Vendor‘s notice, LIC shall
evaluate the situation and may, at its discretion, extend the Vendor‘s time for
performance, with or without liquidated damages, in which case the extension shall be ratified by the
parties by amendment of the Contract.
This Schedule describes the service levels that have been established for the services offered by the
Bidder to LIC. The Bidder shall monitor and maintain the stated service levels to provide quality
customer service to LIC‘s customers.
To ensure that all the stakeholders discharge their roles and responsibilities in an agreed manner to
achieve the common goal, a set of Service Level Metric‘s are defined for the solution.
122
Deployment SLA is applicable to the following scope:
1. Supply, installation and commissioning of all required hardware for steady functioning of the
new centralized P&GS application.
2. Supply installation and commissioning of all required software for steady functioning of the
proposed new centralized P&GS application.
3. Migration of existing applications/data to the proposed new centralized P&GS application
4. Development and commissioning of the bespoke applications as defined by the functional

specifications in the RFP.
The Deployment SLA is applicable from the date of signing the contract to the successful acceptance
of the above scope by LIC. The Duration, measurement basis and penalty is defined below.
# SLA Expected delivery Low Penalty Value of Penalty

Component Performance Applicable
date
A. Environment 5 weeks prior to the +/- 2 weeks >+/- 2 0.5% of cost of

wise Delivery of actual deployment Weeks supply
all required and Go Live of that
of effected
Hardware Environment as per
+Software agreed plan hardware and
B. Initial 3 weeks prior to the +/- 2 weeks >+/- 2 software cost,

installation and actual deployment Weeks
and Go Live of that penalty applied for
configuration
Environment as per
of all supplied every +/- week (i.e.
agreed plan
delay or early
hardware and delivery)
software
and maximum
penalty applied is
10%
of the total hardware
and software cost
C. Pilot of new 65 weeks from the 68 weeks More than 1% of cost of

centralized Date of Contract from the 68 weeks development and
P&GS Date of from the commission of
application Contract Date of application cost for
Contract every week of delay.
This penalty is
capped at 10% cost
123
of the total bespoke
application
development
D. Implementation 70 weeks from the 74 weeks More than 1% of cost of

and Go Live in Date of Contract from the 74 weeks development and
all units of the Date of from the commission of
new centralized Contract Date of application cost for
P&GS Contract every week of delay.
application
This penalty is
capped at 10% of the
total bespoke
application
development
Technical Acceptance SLA
The solution would be tested during the User acceptance testing phase with reference to the
Technical SLAs mentioned below:
Criteria/ Element Description Value / Measurement
Time to Connect Time elapsed from initial request to when Less than 150 msec
the connection between the visitor's
browser and an origin server is established
Waiting Time (relates to Time elapsed from establishing a Less than 400 msec
Time to First Byte) connection to delivering the first byte of a
webpage
Time to First Byte Time elapsed for the first byte of a website Less than 550 msec
to make it to the visitor's browser
Receiving Time (relates to Time elapsed from downloading the first Less than 200 msec
Time to Last Byte) byte to the last byte of a webpage
Time to Last Byte Time elapsed when every byte of a website Less than 750 msec
has made it to the visitor's browser
124
Front-End Performance Metrics
Criteria / Element Description Value / Measurement
Time to Title Time elapsed since a user's browser downloads first Less than 1,300 msec
byte of your website and the webpage's title displays in
the browser
Time to Start Time elapsed when the first visible element appears on Less than 2,500 msec
Render the blank page
Time to Display Time elapsed when all visual elements of the page are in Less than 5,000 msec
place
Time to Interact Time elapsed when a user has gained control of a Less than 6,300 msec
webpage and can interact with content
Content Complexity Metrics
Weight Basis
Asset Weight Total weight of assets including Not exceeding 700 – 800 KB
requests, domains, HTML, JavaScript,
CSS, images, media and others
JS Weight Weight of Java Scripts Not exceeding 150 KB
CSS Weight Weight of Cascading Style Sheets Not exceeding 20 KB
Image Weight Weight of site images Not exceeding 400 - 500 KB
Site Availability and Access Metrics:
Uptime (Availability) System availability uptime vs. system 99.9 %

downtime
Registered Users Users of Proposed New Centralized 1.50 Crore

P&GS
125
Application
Casual Browsers Visitors 50,000 per day
Active Users Active registered users - Logged In 20000

Sessions at any given time
Project Growth ( 2 – 8 Years) 30 % in first year, 20 % in

second year, 10 % in
subsequent years.
Basis of Measurement: Simulated the stated loads and testing the system performance using load
testing tools. The response time for the various applications will be valid only for the components
being developed and maintained by the bidder.
Bidder is required to arrange SLA Monitoring tool and should provide measurements for the bidder
provided solution and infrastructure.
Operational SLAs
The calls would be defined in the following categories:
 Severity level: The severity level of a service call is defined by the extent of impact the
problem has on the overall solution performance
o S1- Very high severity: Business can't Work - Issue in which significant portion of
Application is non-operational and for which there is no work around
o S2- High Severity: Application is not down but there is a serious problem
affecting user's productivity. Work around if provided is awkward and inefficient
o S3- Medium Severity: Application is not down but there is an issue affecting
small number of users or customers. Acceptable work around is available
o S4- Low Severity: Functionality enhancement and/or support for modifications or

maintenance of source code, training documentation or user documentation.
 Priority level: The priority level of a service call is defined by the priority in which the calls
would be handled in case of queuing.
o P1- High Priority: Total failure of critical systems, services, applications or

underlying hardware Hosting center failure Network failure External attack on
network Immediate investigation and status reports
o P2- Medium Priority: Partial failure of critical systems, services, applications or

underlying hardware failure in standard operating procedures Non-critical
hardware defect, Operating system failure of backup system Hourly reporting of
investigations
126
o P3- Low Priority: Total or partial failure of non-critical services or applications,
standard operational Standard operating procedures Routine password changes
Errors in hosted content Updating hosted content Report of initial investigations
within four hours
Indicative SLAs for Helpdesk/ Maintenance support calls:
Severity/ Priority Time by which the calls have to be resolved
S1/P1 4 hours
S2/P2 8 hours
S3 / P3 1 day
S4/P4 3 days
SLA P&GS Operations Uptime : 99.9% Response Time <4 seconds
( Note: The response time for the applications will be valid only for the components being developed
and maintained by the bidder. The SLA monitoring tool should be able to provide measurements for
the bidder provided solution and infrastructure )
Penalty
Item Low Performance Penalty Value of Penalty

Applicable
Performance
P&GS New Centralized <99.9% >=98% <98% INR 500,000 every hour
P&GS Solution
Response Time
P&GS Applications >4 secs< 8 secs >8 secs INR 500,000 every hour
127
Application Issues
Application Issue P1 > 60 min < >120 Mins INR 75000 every 2 hours
Resolution Time 120 mins
P2 > 120 min < > 240 Mins INR 50000 every 4 hours
240 mins
P3 > 240 min < > 480 mins INR 25000 every 8 hours
480 mins
128
. Roles and responsibilities
The following presents the roles and responsibilities along with the deliverables of the LIC and Vendor
during the envisaged phases comprising conceptualization, development, implementation/ support
and exit phase.
Role of LIC
1. UAT : Arrange for UAT

2. Sign-off at various stages, key milestones
3. Payment as per schedule.
4. Monitoring and reviewing timelines as per RFP
Role of Vendor
1. To ensure that the project is completed as per scope of work and time
lines are adhered to.
2. Regular MIS to LIC regarding progress of project.
3. Proper liason with LIC officials for smooth implementation of project.
4. Vendor should have a back to back arrangement with OEMs for hardware
/ software / application development.
Role of OEM
1. Providing support of hardware, software and application development to

vendor whenever required.
2. LIC will not have any direct transaction with OEMs.
Executive Director (P & GS)
129
End of Document
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Request for Proposal

“Centralized IT Application for Pension and Group Systems

[Ref: LIC/CO/P&GS/RFP/2017-18 Dated: 12.03.2018]

Life Insurance Corporation of India,

This document is the property of Life Insurance Corporation of India (LIC).

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8.7.2 Set up of required Environments ………………………………………………………………74

8.8. Continuous Monitoring and Application Lifecycle Management …………………….75

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Annexure I Letter of Authorization

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Means all the functional, technical, operational, performance or other characteristics

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2. Request for Proposal

2.1 Invitation to Bid

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2.2 Activity Schedule

# Description Detailed Information

1. Name of Project Centralized IT Application for ―Pension and Group

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2.3 Project Background

2.4 Objective for RFP

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 Supply, Install, Upgrade, Commissioning and maintenance of Hardware

3.1.2 Technology selection

3.2 General Instructions

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3.3 Pre-Bid Meeting & Clarifications

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3.6 Terms and Conditions

This RFP document along with its Annexures/Appendices/ clarifications/addenda/corrigenda

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4. Fraud and Corrupt Practices

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b) ―fraudulent practice‖ means a misrepresentation or omission of facts or disclosure of

c) ―coercive practice‖ means impairing or harming or threatening to impair or harm,

e) ―Restrictive practice‖ means forming a cartel or arriving at any understanding or

3.9 Bid Document Price

3.10 Earnest Money Deposit

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1. To sign the Contract; or

a. after the process under this RFP is over, and

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SUBMITTED BY _________ (Bidder’s Name)”

SUBMITTED BY _________ (Bidder’s Name)”

SUBMITTED BY _________ (Bidder’s Name)”

“COMMERCIAL BID for RFP Ref: LIC/CO/P&GS/RFP/2017-18 Dt: 12.03.2018

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SUBMITTED BY _________ (Bidder’s Name)”

e) Other Information required on the envelope and sub-envelopes - Name of Bidder,

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o. Non-Disclosure Agreement (NDA)

The successful bidder shall submit, a duly notarized Non-Disclosure agreement on a

t. Ordinarily the bid shall contain no overwriting. Any interlineations, erasures or

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3.12 Documents Required for Bid Submission

a) Bank Guarantee of EMD, bid price and letter of Intent

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