INTRODUCTION

Insurance is a means of protection from financial loss. It is a form of risk

management, primarily used to hedge against the risk of a contingent
or uncertain loss.
An entity which provides insurance is known as an insurer, insurance
company, insurance carrier or underwriter. A person or entity who buys
insurance is known as an insured or as a policyholder. The insurance
transaction involves the insured assuming a guaranteed and known
relatively small loss in the form of payment to the insurer in exchange
for the insurer's promise to compensate the insured in the event of a
covered loss. The loss may or may not be financial, but it must be
reducible to financial terms, and usually involves something in which
the insured has an insurable interest established by ownership,
possession, or pre-existing relationship.
The insured receives a contract, called the insurance policy, which
details the conditions and circumstances under which the insurer will
compensate the insured. The amount of money charged by the insurer
to the Policyholder for the coverage set forth in the insurance policy is
called the premium. If the insured experiences a loss which is
potentially covered by the insurance policy, the insured submits a claim
to the insurer for processing by a claims adjuster. The insurer
may hedge its own risk by taking out reinsurance, whereby another
insurance company agrees to carry some of the risk, especially if the
primary insurer deems the risk too large for it to carry.
 LIFE INSURANCE CORPORATION OF INDIA
Life Insurance Corporation of India (LIC) is an Indian state-
owned insurance group and investment company headquartered
in Mumbai. It is the largest insurance company in India with an
estimated asset value of ₹2,529,390 crore (US$370 billion)(2016). As of
2013 it had total life fund of ₹1,433,103.14 crore and total number of
policies sold coming in at ₹367.82 lakh that year (2012-13).
Life insurance in India made its debut well over 100 years ago.
In our country, which is one of the most populated in the world, the
prominence of insurance is not as widely understood, as it ought to be.

Nationalisation in 1956
The Parliament of India passed the Life Insurance of India Act on 19
June 1956 creating the Life Insurance Corporation of India, which
started operating in September of that year. It consolidated the
business of 245 private life insurers and other entities offering life
insurance services; this consisted of 154 life insurance companies, 16
foreign companies and 75 provident companies. The nationalisation of
the life insurance business in India was a result of the Industrial Policy
Resolution of 1956, which had created a policy framework for
extending state control over at least 17 sectors of the economy,
including life insurance.
What Is Life Insurance?
Life insurance is a contract that pledges payment of an amount to the
person assured (or his nominee) on the happening of the event insured
against.

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

» The date of maturity, or
» Specified dates at periodic intervals, or
» Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of
premium periodically to the Corporation by the policyholder. Life
insurance is universally acknowledged to be an institution, which
eliminates 'risk', substituting certainty for uncertainty and comes to the
timely aid of the family in the unfortunate event of death of the
breadwinner.

By and large, life insurance is civilisation's partial solution to the

problems caused by death. Life insurance, in short, is concerned with
two hazards that stand across the life-path of every person:

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

itself.
2.That of living till old age without visible means of support.
Life Insurance Vs. Other Savings

Contract Of Insurance:
A contract of insurance is a contract of utmost good faith technically
known as uberrima fides. The doctrine of disclosing all material facts is
embodied in this important principle, which applies to all forms of
insurance.

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

questions in the proposal form are correctly answered. Any
misrepresentation, non-disclosure or fraud in any document leading to
the acceptance of the risk would render the insurance contract null and
void.

Protection:
Savings through life insurance guarantee full protection against risk of
death of the saver. Also, in case of demise, life insurance assures
payment of the entire amount assured (with bonuses wherever
applicable) whereas in other savings schemes, only the amount saved
(with interest) is payable.

Aid To Thrift:
Life insurance encourages 'thrift'. It allows long-term savings since
payments can be made effortlessly because of the 'easy instalment'
facility built into the scheme. (Premium payment for insurance is either
monthly, quarterly, half yearly or yearly).
For example: The Salary Saving Scheme popularly known as SSS,
provides a convenient method of paying premium each month by
deduction from one's salary.
In this case the employer directly pays the deducted premium to LIC.
The Salary Saving Scheme is ideal for any institution or establishment
subject to specified terms and conditions.
Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of
any policy that has acquired loan value. Besides, a life insurance policy
is also generally accepted as security, even for a commercial loan.

Tax Relief:
Life Insurance is the best way to enjoy tax deductions on income tax
and wealth tax. This is available for amounts paid by way of premium
for life insurance subject to income tax rates in force.
Assessees can also avail of provisions in the law for tax relief. In such
cases the assured in effect pays a lower premium for insurance than
otherwise.

Money When You Need It:

A policy that has a suitable insurance plan or a combination of different
plans can be effectively used to meet certain monetary needs that may
arise from time-to-time.
Children's education, start-in-life or marriage provision or even
periodical needs for cash over a stretch of time can be less stressful
with the help of these policies.
Alternatively, policy money can be made available at the time of one's
retirement from service and used for any specific purpose, such as,
purchase of a house or for other investments. Also, loans are granted to
policyholders for house building or for purchase of flats (subject to
certain conditions).
Who Can Buy A Policy?
Any person who has attained majority and is eligible to enter into a
valid contract can insure himself/herself and those in whom he/she has
insurable interest.

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

one's spouse or children. While underwriting proposals, certain factors
such as the policyholder’s state of health, the proponent's income and
other relevant factors are considered by the Corporation.
Insurance For Women
Prior to nationalisation (1956), many private insurance companies
would offer insurance to female lives with some extra premium or on
restrictive conditions. However, after nationalisation of life insurance,
the terms under which life insurance is granted to female lives have
been reviewed from time-to-time.

At present, women who work and earn an income are treated at par
with men. In other cases, a restrictive clause is imposed, only if the age
of the female is up to 30 years and if she does not have an income
attracting Income Tax.
Medical And Non-Medical Schemes
Life insurance is normally offered after a medical examination of the life
to be assured. However, to facilitate greater spread of insurance and
also to avoid inconvenience, LIC has been extending insurance cover
without any medical examination, subject to certain conditions.

With Profit And Without Profit Plans

An insurance policy can be 'with' or 'without' profit. In the former,
bonuses disclosed, if any, after periodical valuations are allotted to the
policy and are payable along with the contracted amount.

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

addition. The premium rate charged for a 'with' profit policy is
therefore higher than for a 'without' profit policy.
Keyman Insurance
Keyman insurance is taken by a business firm on the life of key
employee(s) to protect the firm against financial losses, which may
occur due to the premature demise of the Keyman.
INSURANCE REGULATORY AND
DEVELOPMENT AUTHORITY
The Insurance Regulatory and Development Authority of
India (IRDAI) is an autonomous, statutory body tasked with
regulating and promoting the insurance and re-
insurance industries in India.[1] It was constituted by the
Insurance Regulatory and Development Authority Act,
1999,[2] an Act of Parliament passed by the Government of
India.[3] The agency's headquarters are
in Hyderabad, Telangana, where it moved from Delhi in 2001.

IRDAI is a 10-member body including the chairman, five full-

time and four part-time members appointed by the
government of India.
 UNDERWRITING
Underwriting is how insurance companies price risk, how they figure
out how much coverage a potential policyholder needs vs. the
likelihood they’ll claim. They then use this info to set a monthly
premium.

What’s an underwriter?

In insurance, an underwriter evaluates and decides how much coverage

a policyholder should receive, while evaluating risk (how likely they are
to make a claim) and determining whether to insure the policyholder.

They then use this info to determine how much a policyholder should
pay for a given renters or home insurance policy.

These considerations and calculations are called underwriting.

The underwriting process in home and renters insurance

Insurance underwriters review applications for insurance coverage, and

then either accept or reject a potential policyholder based on their risk
analysis. By assessing how much coverage a policyholder is looking to
get, versus the level of risk associated with that person, insurance
underwriters review the coverage request and decide whether or not
to offer an insurance policy.

Insurance underwriters also review existing policyholders for risk

analysis, advise on risk management situations (e.g. should they renew
 a policy if someone suddenly presents a significant risk), and determine
coverage amounts on a case-by-case basis.

Things that affect your risk score

There are a variety of factors that underwriters take into account when
analyzing a potential policyholder. Here are a few things that could
negatively affect the underwriting process (and your monthly
premium), but are easy to address:

 A poorly maintained roof

 Old construction you haven’t taken steps to update
 Outdated wiring or plumbing
 A lack of home safety measures (no deadbolt, sprinklers, fire detector,
etc.)
If you do take the proper steps to update the above, underwriters will
normally reconsider a given risk or set of risks once the new info is
presented to them
 LIC PRODUCTS
ENDOWMENT PLANS

 NEW ENDOWMENT(814)

 JEEVAN ANAND(815)

 SINGLE PREMIUM ENDOWMENT(817)

 JEEVAN RAKSHAK(827)

 LIMITED PREMIUM ENDOWMENT(830)

 JEEVAN LAKSHYA(833)

 JEEVAN LABH(836)

 JEEVAN PRAGATI(838)

 AADHAAR STAMBH(843)

 AADHAAR SHILA(844)

 NAV JEEVAN(853)

WHOLE LIFE PLANS

 JEEVAN UMANG
MONEY BACK PLANS

 20YEAR MONEY BACK(820)

 BIMA BACHAT(816)

 25YEAR MONEY BACK(821)

 CHILD MONEY BACK(832)

 JEEVAN TARUN(834)

 JEEVAN SHIROMANI(847)

 BIMA SHREE(848)

SINGLE PREMIUM PLANS

 SINGLE PREMIUM ENDOWMENT(817)

 BIMA BACHAT(816)

 JEEVAN NIDHI SINGLE PREMIUM(818)

TERM PLANS

 ANMOL JEEVAN(822)

 AMULYA JEEVAN(823)
ANNUITY PLANS

 JEEVAN NIDHI(818)

 JEEVAN AKSHAY VI(189)

 JEEVAN NIDHI SINGLE PREMIUM(818)

 PRADHAN MANTRI VAYA VANDANA YOJANA(842)

 JEEVAN SHANTI(850)

HEALTH PLANS

 JEEVAN AROGYA(904)

 CANCER COVER(905)

CHILD PLANS

 CHILD MONEY BACK(832)

 JEEVAN TARUN(834)

 SINGLE PREMIUM ENDOWMENT(817)