1

INDEX

SR.NO TOPIC PAGE.NO
1 ACKNOWLEGMENT. 2
2 EXECUTIVE SUMMARY. 3
3 RESEARCH METHODOLOGY. 4
4 INTRODUCTION. 5
5 HISTORY OF INSURANCE IN INDIA. 6
6 WHAT IS LIFE INSURANCE? 10
7 COMPANY PROFILE- LIC OF INDIA 14
8 LIC SUBSIDIARIES 20
9 OBJECTIVES OF LIC 22
10 MISSION/VISSION 23
11 BOARD OF DIRECTORS 24
12 AWARDS AND ACHIEVEMENTS 25
13 POLICIES(SCHEMES) 28
14 PROCUTS BY LIC
INSURANCE PLANS
PENSION PLANS
UNIT PLANS
SPEACIAL PLANS
GROUP SCHEME
HEALTH PLAN
32
15 TAX BENEFITS. 53
16 56YRS OF NATION BUILDING LIC PRIDE OF
INIDA
55
17 ARTICLES 58
18 CONCLUSION 61
19 BIBLIOGRAPHY 62











2

ACKNOWLEGDEMENT

If words are considered to be signs of gratitude then let these words convey the
very same my sincere gratitude to LIFE INSURANCE CORPORATION OF
INDIA for providing me with necessary directions on doing this project to the
best of my abilities.
I am highly indebted to Mr. Ramkumar executive director of the bank who
helped me connect with Mr. Sohandeep Singh, who has provided me with the
necessary information and also for the support extended out to me in the
completion of this report and his valuable suggestion and comments on
bringing out this report in the best way possible.
I also thank Prof. MEENA DESAI who has sincerely supported me with the
valuable insights into the completion of this project.
I am grateful to all my friends who have helped me in the successful completion
of this project.















3


EXECUTIVE SUMMARY
Insurance is the most familiar word or phrase used in todays life. Insurance
companies are those institutes that provide various types of facility and services
in term of there plans and policies to the consumers. The following project has
been made on one of the largest company in insurance sector in India which is
owned by government which is LIFE INSURANCE CORPORATION OF
INDIA. The following project makes an analysis of the products of LIC. The
brief summary of each chapter is discussed as follows:-





























4

RESEARCH OBJECTIVE

This project gives the brief background of the sector.
To more about the company .
Brief about the products .
LICs 56years of serving the insurance sector.





































5


INTRODUCTION

What is an insurance?
Insurance is a term in law and economics. It is something people buy to protect
themselves from losing money. People who buy insurance pay what is called a
premium (often paid every month) and promise to be careful (which is called a
"duty of care"). In exchange for this, if something bad happens to the person or
thing that is insured, the company that sold the insurance will pay money back.
(However, there are some times when the company will not have to pay money
back, such as if the person was not careful.)
There are different kinds of insurance. One kind is called "fire insurance". It
pays people if their property catches on fire and burns down. Another kind is
called "life insurance", which pays somebody else (called the "beneficiary")
money if the person who has life insurance dies or becomes seriously ill.
Actuaries are the people who figure out how much the premium should be. They
balance how much the insurer might have to pay out against the chances of
having to pay out. If an actuary thinks that there is a big chance that the
company will have to pay out, he will make the premium higher.
















6


HISTORY OF INSURANCE IN INDIA

In India, insurance has a deep-rooted history. It finds mention in the writings of
Manu ( Manusmrithi ), Yagnavalkya ( Dharmasastra ) and Kautilya (
Arthasastra ). The writings talk in terms of pooling of resources that could be re-
distributed in times of calamities such as fire, floods, epidemics and famine.
This was probably a pre-cursor to modern day insurance. Ancient Indian history
has preserved the earliest traces of insurance in the form of marine trade loans
and carriers contracts. Insurance in India has evolved over time heavily
drawing from other countries, England in particular.

1818 saw the advent of life insurance business in India with the establishment
of the Oriental Life Insurance Company in Calcutta. This Company however
failed in 1834. In 1829, the Madras Equitable had begun transacting life
insurance business in the Madras Presidency. 1870 saw the enactment of the
British Insurance Act and in the last three decades of the nineteenth century, the
Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were
started in the Bombay Residency. This era, however, was dominated by foreign
insurance offices which did good business in India, namely Albert Life
Assurance, Royal Insurance, Liverpool and London Globe Insurance and the
Indian offices were up for hard competition from the foreign companies.

In 1914, the Government of India started publishing returns of Insurance
Companies in India. The Indian Life Assurance Companies Act, 1912 was the
first statutory measure to regulate life business. In 1928, the Indian Insurance
Companies Act was enacted to enable the Government to collect statistical
information about both life and non-life business transacted in India by Indian
and foreign insurers including provident insurance societies. In 1938, with a
view to protecting the interest of the Insurance public, the earlier legislation was
7
consolidated and amended by the Insurance Act, 1938 with comprehensive
provisions for effective control over the activities of insurers.

The Insurance Amendment Act of 1950 abolished Principal Agencies.
However, there were a large number of insurance companies and the level of
competition was high. There were also allegations of unfair trade practices. The
Government of India, therefore, decided to nationalize insurance business.

An Ordinance was issued on 19
th
January, 1956 nationalising the Life
Insurance sector and Life Insurance Corporation came into existence in the same
year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident
societies245 Indian and foreign insurers in all. The LIC had monopoly till the
late 90s when the Insurance sector was reopened to the private sector.

The history of general insurance dates back to the Industrial Revolution in

the west and the consequent growth of sea-faring trade and commerce in the 17
th

century. It came to India as a legacy of British occupation. General Insurance in
India has its roots in the establishment of Triton Insurance Company Ltd., in the
year 1850 in Calcutta by the British. In 1907, the Indian Mercantile Insurance
Ltd, was set up. This was the first company to transact all classes of general
insurance business.
1957 saw the formation of the General Insurance Council, a wing of the
Insurance Associaton of India. The General Insurance Council framed a code of
conduct for ensuring fair conduct and sound business practices.

In 1968, the Insurance Act was amended to regulate investments and set
minimum solvency margins. The Tariff Advisory Committee was also set up
then.

8
In 1972 with the passing of the General Insurance Business (Nationalisation)
Act, general insurance business was nationalized with effect from 1
st
January,
1973. 107 insurers were amalgamated and grouped into four companies, namely
National Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd and the United India Insurance Company Ltd.
The General Insurance Corporation of India was incorporated as a company in
1971 and it commence business on January 1sst 1973.

This millennium has seen insurance come a full circle in a journey extending
to nearly 200 years. The process of re-opening of the sector had begun in the
early 1990s and the last decade and more has seen it been opened up
substantially. In 1993, the Government set up a committee under the
chairmanship of RN Malhotra, former Governor of RBI, to propose
recommendations for reforms in the insurance sector.The objective was to
complement the reforms initiated in the financial sector. The committee
submitted its report in 1994 wherein , among other things, it recommended that
the private sector be permitted to enter the insurance industry. They stated that
foreign companies be allowed to enter by floating Indian companies, preferably
a joint venture with Indian partners.

Following the recommendations of the Malhotra Committee report, in 1999,
the Insurance Regulatory and Development Authority (IRDA) was constituted
as an autonomous body to regulate and develop the insurance industry. The
IRDA was incorporated as a statutory body in April, 2000. The key objectives of
the IRDA include promotion of competition so as to enhance customer
satisfaction through increased consumer choice and lower premiums, while
ensuring the financial security of the insurance market.

The IRDA opened up the market in August 2000 with the invitation for
application for registrations. Foreign companies were allowed ownership of up
9

to 26%. The Authority has the power to frame regulations under Section 114A
of the Insurance Act, 1938 and has from 2000 onwards framed various
regulations ranging from registration of companies for carrying on insurance
business to protection of policyholders interests.

In December, 2000, the subsidiaries of the General Insurance Corporation of
India were restructured as independent companies and at the same time GIC was
converted into a national re-insurer. Parliament passed a bill de-linking the four
subsidiaries from GIC in July, 2002.

Today there are 27 general insurance companies including the ECGC and
Agriculture Insurance Corporation of India and 24 life insurance companies
operating in the country.

The insurance sector is a colossal one and is growing at a speedy rate of 15-
20%. Together with banking services, insurance services add about 7% to the
countrys GDP. A well-developed and evolved insurance sector is a boon for
economic development as it provides long- term funds for infrastructure
development at the same time strengthening the risk taking ability of the
country.













10


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 civilizations partial solution to the problems
caused by death. Life insurance, in short, is concerned with two hazards that
stand across the life-path of every person:
1. That of dying prematurely leaves a dependent family to fend for itself.
2. That of living till old age without visible means of support.





11

Life Insurance Vs. Other Savings
Contract of Insurance:
A contract of insurance is a contract of utmost good faith technically known as
uberrima fides. The doctrine of disclosing all material facts is embodied in this
important principle, which applies to all forms of insurance.
At the time of taking a policy, policyholder should ensure that all questions in
the proposal form are correctly answered. Any misrepresentation, non-
disclosure or fraud in any document leading to the acceptance of the risk would
render the insurance contract null and void.

Protection:
Savings through life insurance guarantee full protection against risk of death of
the saver. Also, in case of demise, life insurance assures payment of the entire
amount assured (with bonuses wherever applicable) whereas in other savings
schemes, only the amount saved (with interest) is payable.
Aid to Thrift:
Life insurance encourages 'thrift'. It allows long-term savings since payments
can be made effortlessly because of the 'easy installment' facility built into the
scheme. (Premium payment for insurance is either monthly, quarterly, half
yearly or yearly). For example: The Salary Saving Scheme popularly known as
SSS provides a convenient method of paying premium each month by deduction
from one's salary. In this case the employer directly pays the deducted premium
to LIC. The Salary Saving Scheme is ideal for any institution or establishment
subject to specified terms and conditions.
Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy

12

that has acquired loan value. Besides, a life insurance policy is also generally
accepted as security, even for a commercial loan.

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

Money When You Need It:
A policy that has a suitable insurance plan or a combination of different plans
can be effectively used to meet certain monetary needs that may arise from
time-to-time. Children's education, start-in-life or marriage provision or even
periodical needs for cash over a stretch of time can be less stressful with the
help of these policies.
Alternatively, policy money can be made available at the time of one's
retirement from service and used for any specific purpose, such as, purchase of
a house or for other investments. Also, loans are granted to policyholders for
house building or for purchase of flats (subject to certain conditions).

Who Can Buy A Policy?
Any person who has attained majority and is eligible to enter into a valid
contract can insure himself/herself and those in whom he/she has insurable
interest.
Policies can also be taken, subject to certain conditions, on the life of one's
spouse or children. While underwriting proposals, certain factors such as the
policyholders state of health, the proponent's income and other relevant factors
13

are considered by the Corporation.

Insurance For Women
Prior to nationalization (1956), many private insurance companies would offer
insurance to female lives with some extra premium or on restrictive conditions.
However, after nationalization of life insurance, the terms under which life
insurance is granted to female lives have been reviewed from time-to-time.
At present, women who work and earn an income are treated at par with men. In
other cases, a restrictive clause is imposed, only if the age of the female is up to
30 years and if she does not have an income attracting Income Tax.

Medical And Non-Medical Schemes
Life insurance is normally offered after a medical examination of the life to be
assured. However, to facilitate greater spread of insurance and also to avoid
inconvenience, LIC has been extending insurance cover without any medical
examination, subject to certain conditions.
With Profit And Without Profit Plans
An insurance policy can be 'with' or 'without' profit. In the former, bonuses
disclosed, if any, after periodical valuations are allotted to the policy and are
payable along with the contracted amount.
In 'without' profit plan the contracted amount is paid without any addition. The
premium rate charged for a 'with' profit policy is therefore higher than for a
'without' profit policy.

Keyman Insurance
Keyman insurance is taken by a business firm on the life of key employee(s) to
protect the firm against financial losses, which may occur due to the premature
demise of the Keyman.
14

COMPANY PROFILE
LIC LIFE INSURACE CORPORATION OF INDIA



The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen today to secure themselves against
loss and disaster existed in primitive men also. They too sought to avert the evil
consequences of fire and flood and loss of life and were willing to make some
sort of sacrifice in order to achieve security. Though the concept of insurance is
largely a development of the recent past, particularly after the industrial era
past few centuries yet its beginnings date back almost 6000 years.
Life Insurance in its modern form came to India from England in the year 1818.
Oriental Life Insurance Company started by Europeans in Calcutta was the first
life insurance company on Indian Soil. All the insurance companies established
during that period were brought up with the purpose of looking after the needs
of European community and Indian natives were not being insured by these
companies. However, later with the efforts of eminent people like Babu
Muttylal Seal, the foreign life insurance companies started insuring Indian lives.
But Indian lives were being treated as sub-standard lives and heavy extra
premiums were being charged on them. Bombay Mutual Life Assurance Society
heralded the birth of first Indian life insurance company in the year 1870, and
covered Indian lives at normal rates. Starting as Indian enterprise with highly
patriotic motives, insurance companies came into existence to carry the message
of insurance and social security through insurance to various sectors of society.
15

Bharat Insurance Company (1896) was also one of such companies inspired by
nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance
companies. The United India in Madras, National Indian and National Insurance
in Calcutta and the Co-operative Assurance at Lahore were established in 1906.
In 1907, Hindustan Co-operative Insurance Company took its birth in one of the
rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in
Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later
Bombay Life) were some of the companies established during the same period.
Prior to 1912 India had no legislation to regulate insurance business. In the year
1912, the Life Insurance Companies Act, and the Provident Fund Act were
passed. The Life Insurance Companies Act, 1912 made it necessary that the
premium rate tables and periodical valuations of companies should be certified
by an actuary. But the Act discriminated between foreign and Indian companies
on many accounts, putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore, it
rose to 176 companies with total business-in-force as Rs.298 crore in 1938.
During the mushrooming of insurance companies many financially unsound
concerns were also floated which failed miserably. The Insurance Act 1938 was
the first legislation governing not only life insurance but also non-life insurance
to provide strict state control over insurance business. The demand for
nationalization of life insurance industry was made repeatedly in the past but it
gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938
was introduced in the Legislative Assembly. However, it was much later on the
19th of January, 1956, that life insurance in India was nationalized. About 154
Indian insurance companies, 16 non-Indian companies and 75 provident were
operating in India at the time of nationalization. Nationalization was
16

accomplished in two stages; initially the management of the companies was
taken over by means of an Ordinance, and later, the ownership too by means of
a comprehensive bill. The Parliament of India passed the Life Insurance
Corporation Act on the 19th of June 1956, and the Life Insurance Corporation
of India was created on 1st September, 1956, with the objective of spreading life
insurance much more widely and in particular to the rural areas with a view to
reach all insurable persons in the country, providing them adequate financial
cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from
its corporate office in the year 1956. Since life insurance contracts are long term
contracts and during the currency of the policy it requires a variety of services
need was felt in the later years to expand the operations and place a branch
office at each district headquarter. Re-organization of LIC took place and large
numbers of new branch offices were opened. As a result of re-organization
servicing functions were transferred to the branches, and branches were made
accounting units. It worked wonders with the performance of the corporation. It
may be seen that from about 200.00 crores of New Business in 1957 the
corporation crossed 1000.00 crores only in the year 1969-70, and it took another
10 years for LIC to cross 2000.00 crore mark of new business. But with re-
organization happening in the early eighties, by 1985-86 LIC had already
crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100
divisional offices, 7 zonal offices and the corporate office. LICs Wide Area
Network covers 100 divisional offices and connects all the branches through a
Metro Area Network. LIC has tied up with some Banks and Service providers to
offer on-line premium collection facility in selected cities. LICs ECS and ATM
premium payment facility is an addition to customer convenience. Apart from
17

on-line Kiosks and IVRS, Info Centers have been commissioned at Mumbai,
Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and
many other cities. With a vision of providing easy access to its policyholders,
LIC has launched its SATELLITE SAMPARK offices. The satellite offices are
smaller, leaner and closer to the customer. The digitalized records of the satellite
offices will facilitate anywhere servicing and many other conveniences in the
future.
LIC continues to be the dominant life insurer even in the liberalized scenario of
Indian insurance and is moving fast on a new growth trajectory surpassing its
own past records. LIC has issued over one crore policies during the current year.
It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct,
2005, posting a healthy growth rate of 16.67% over the corresponding period of
the previous year.
From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same
motives which inspired our forefathers to bring insurance into existence in this
country inspire us at LIC to take this message of protection to light the lamps of
security in as many homes as possible and to help the people in providing
security to their families.
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on
Indian soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance
company started its business.

18

1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by
the central government and nationalized. LIC formed by an Act of Parliament,
viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the
Government of India.
The General insurance business in India, on the other hand, can trace its roots to
the Triton Insurance Company Ltd., the first general insurance company
established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact
all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized
the general insurance business in India with effect from 1st January 1973.

19

107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.






















20

LIC SUBSIDIARIES

Unlike provisions for private players in the insurance sector, the LIC Act
provides for setting up subsidiaries through policy holders fund. It is due to the
LIC act that LIC of India has a number of subsidiaries which help it in
leveraging its potential to the maximum, providing an enhanced set of
diversified services to its customers. These subsidiaries include LIC
International, LIC Nepal, LIC Lanka, LIC Housing Finance and LIC Mutual
Fund.

LIC INERNATIONAL
This is a joint venture offshore company promoted by LIC which commenced
operations in July, 1989 with the objectives of offering US$ denominated
policies to cater to the insurance needs of NRIs and providing insurance services
to holders of LIC policies currently residing in the Gulf. LIC International
operates in all GCC countries.

LIC NEPAL
A joint venture company formed in 2001 with the Vishal Group of Industries,
Nepal.

LIC LANKA
A joint venture company formed in 2003 with the Bartleet Group of Companies,
Sri Lanka.

LIC HOUSING FINANCE LTD.
The Company is recognized by National Housing Bank and listed on the
National Stock Exchange (NSE) & Bombay Stock Exchange Limited (BSE).
LIC Housing Finance Ltd. is one of the largest Housing Finance Company in
21

India. Incorporated on 19th June 1989 under the Companies Act, 1956, the
company was promoted by LIC of India and went public in the year 1994. Its
main objective is to provide long term finance for construction or purchase of
houses or apartments. It has a Dubai office.
LIC MUTUL FUND LTD.
Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989
and contributed Rs. 2 Crores towards the corpus of the Fund. LIC Mutual Fund
was constituted as a Trust in accordance with the provisions of the Indian Trust
Act, 1882.

There are some other subsidiaries of LIC which are
1. LIC Mutual Fund Asset Management Company Ltd.
2. LIC HFL Care Homes Ltd.
3. LICHFL Asset Management Company Private Limited.
4. LICHFL Trustee Company Private Limited.
5. LICHFL Financial Services Limited, etc.



















22

OBJECTIVES OF LIC

Spread Life Insurance widely and in particular to the rural areas and to
the socially and economically backward classes with a view to reaching all
insurable persons in the country and providing them adequate financial cover
against death at a reasonable cost.
Maximize mobilization of people's savings by making insurance-linked
savings adequately attractive.
Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of the interest
of the community as a whole; the funds to be deployed to the best advantage of
the investors as well as the community as a whole, keeping in view national
priorities and obligations of attractive return.
Conduct business with utmost economy and with the full realization that
the moneys belong to the policyholders.
Act as trustees of the insured public in their individual and collective
capacities.
Meet the various life insurance needs of the community that would arise
in the changing social and economic environment.
Involve all people working in the Corporation to the best of their
capability in furthering the interests of the insured public by providing efficient
service with courtesy.
Promote amongst all agents and employees of the Corporation a sense of
participation, pride and job satisfaction through discharge of their duties with
dedication towards achievement of Corporate Objective.
23

MISSION/VISSION

MISSION
"Explore and enhance the quality of life of people through financial security by
providing products and services of aspired attributes with competitive returns,
and by rendering resources for economic development."

VISSION
"A trans-nationally competitive financial conglomerate of significance to
societies and Pride of India."




























24

BOARD OF DIRECTORS
Members on the Board of the Corporation
1. Chairman: Shri. T.S. Vijayan

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

3. Managing Director: Shri. Thomas Mathew T.
4. Managing Director: Shri. A.K. Dasgupta

5. Finance Secretary: Shri. Ashok Chawla (Ministry of Finance, Govt. of
India)
6. Additional Secretary: Shri. G.C. Chaturvedi (Department of Financial
Services, Ministry of Finance, Govt. of India.)
7. Chairman cum Managing Director: Shri. Yogesh Lohiya (GIC of India)
8. Chairman & Managing Director: Shri. T.C. Venkat Subramanian (Export
Import Bank of India)
9. Dr. Sooranad Rajashekhran
10. Shri. Monis R. Kidwai







25

AWARDS AND ACHIVEMENTS



Brand Equity Most Trusted Brand 2009
Top in Insurance Category
Golden Peacock Innovative Product /
Service Award 2009

Loyalty Awards - 2009
Readers Digest Trusted Brand Award
2009 in the Platinum category

CNBC Awaaz Consumer Awards 2008 NDTV Profit Business Leadership
26
Award 2008

INDY's Silver Award for Best Corporate
Film
INDY's Silver Award for Best in House
Magazine

IT USER 2008 NASCOM Selected Business Super brand India
2008

ASIA BRAND CONGRESS BRAND
LEADERSHIP AWARD 2008
Pitch Award -" Rank 1 " India's Top 50
service Brands


27

Loyalty Awards 2008 - Insurance Sector
SKOCH Challengers Award 2008 for
Jeevan Madhur

Readers Digest Trusted Brand Award
2008 in the Platinum category.
Golden Peacock Award for Excellence
in Corporate Governance

Web 18 Genius of the web awards 2007





28

POLICIES (SCHEMES)
Life Insurance Corporation of India provides number of products to its
costumers. LIC differentiated their policies into five different types which are:
1. Insurance Plans
2. Pension Plans
3. Unit Plans
4. Special Plans
5. Group Scheme

INSURANCE PLANS
As individuals it is inherent to differ. Each individual's insurance needs and
requirements are different from that of the others. LIC's Insurance Plans are
policies that talk to you individually and give you the most suitable options that
can fit your requirement.
ENDOWMENT PLAN
Single Premium Endowment Plan.
New Endowment Plan.
New Jeevan Anand.
MONEY BACK PLANS
LICS New Money BACK PLAN 20 yrs
LICS New Money BACK PLAN- 25yrs
LICs New Bima Bachat.
TERM ASSURANCE PLANS
LICs Anmol Jeevan II
LICs Amulya Jeevan II

PENSION PLANS
Pension Plans are Individual Plans that gaze into your future and foresee
29

financial stability during your old age. These policies are most suited for senior
citizens and those planning a secure future, so that you never give up on the best
things in life.
Jeevan Akshay VI
LICs new Jeevan Nidhi.

UNIT PLANS
Unit plans are investment plans for those who realize the worth of hard-earned
money. These plans help you see your savings yield rich benefits and help you
save tax even if you don't have consistent income.

SPECIAL PLANS
LICs Special Plans are not plans but opportunities that knock on your door
once in a lifetime. These plans are a perfect blend of insurance, investment and
a lifetime of happiness!


GROUP SCHEME
Group Insurance Scheme is life insurance protection to groups of people. This
scheme is ideal for employers, associations, societies etc. and allows you to
enjoy group benefits at really low costs.
GROUP SCHEME
Group Term Insurance Schemes.
Group Insurance Scheme in lieu of EDLI.
30
Group Gratuity Scheme.
Group Savings Linked Insurance Scheme.
Group Leave Encashment Scheme.
Group Mortgage Redemption Assurance Scheme.
Group Critical Illness Rider.
WITHDRAWN PLANS

Jeevan Nischay

Market Plus I
Wealth Plus

Profit Plus
Jeevan Aastha
Money Plus-I

Jeevan Varsha

Child Fortune
Plus
Fortune Plus

Jeevan Saathi Plus
Health Plus

Samridhi Plus
Pension Plus

Jeevan Nidhi

New Jeevan Dhara-I

New Jeevan
Suraksha-I

Jeevan Vriddhi

Jeevan Vaibhav (Single Premium Endowment
Assurance Plan)
Jeevan Sugam

Two Year Temporary
Assurance Policy
Mortgage Redemption

Flexi Plus
CDA Endowment Vesting At
21
CDA Endowment Vesting At
18
The Whole Life Policy-
Limited Payment

Health Protection
Plus
Jeevan Arogya

Bima Account 1
The Whole Life Policy

Bima Account 2

Jeevan Pramukh

Jeevan Mitra(Double Cover
Endowment Plan)
Anmol Jeevan-I

New Jeevan Nidhi

Jeevan Amrit

Jeevan Surabhi-25
Years

Jeevan Bharthi-I

Jeevan Surabhi-20
Years
The Money Back Policy-25
Years

Jeevan Mitra(Triple Cover Endowment
Plan)

Jeevan Surabhi-15 Years

The Whole Life Policy-
Single Premium
Jeevan Anurag

Komal Jeevan

31

Child Career Plan

Child Future Plan
Jeevan Kishore

Jeevan Chhaya

Marriage Endowment

Educational
Annuity Plan
Jeevan Saathi

Jeevan Shree-I

Jeevan Ankur

The Endowment Assurance Policy - Limited
Payment
New Janaraksha Plan

The Money Back Policy - 20
Years

Jeevan Tarang

The Endowment Assurance
Policy
Jeevan Anand

Bima Bachat
Jeevan Aadhar

Jeevan Vishwas
Endowment Plus

New Bima Gold
Bima Nivesh 2005

Jeevan Saral
Jeevan Deep

Jeevan Mangal
Jeevan Madhur

Jeevan Mangal
Amulya Jeevan-I

HEALTH PLANS
Jeevan Arogya .

MICRO INSURANCE PLAN
LICS New Jeevan Mangal.














32


PRODUCTS BY LIC
INSURANCE PLANS
1. New Jeevan Anand
Features
Product summary:
LIC's New Jeevan Anand Plan is a participating non-linked plan which offers an
attractive combination of protection and savings. This combination provides
financial protection against death throughout the lifetime of the policyholder
with the provision of payment of lumpsum at the end of the selected policy term
in case of his/her survival. This plan also takes care of liquidity needs through
its loan facility.
1. Benefits: Death benefit : Provided all due premiums have been paid,
the following death benefit shall be paid: On Death during the policy term:
Death benefit, defined as sum of Sum Assured on Death and vested Simple
Reversionary Bonuses and Final Additional bonus, if any, shall be payable.
Where, Sum Assured on Death is defined as higher of 125% of Basic Sum
Assured or 10 times of annualised premium. This death benefit shall not be less
than 105% of all the premiums paid as on date of death. The premiums
mentioned above exclude service tax, extra premium and rider premiums, if any.
On death of policyholder at any time after policy term: Basic Sum Assured
Benefits payable at the end of Policy Term: Basic Sum Assured, along with
vested Simple Reversionary Bonuses and Final Additional Bonus, if any, shall
be payable in lump sum on survival to the end of the policy term provided all
due premiums have been paid.
Participation in Profits : The policy shall participate in profits of the
Corporation and shall be entitled to receive Simple Reversionary Bonuses
declared as per the experience of the Corporation during policy term provided
33
the policy is in full force. Final (Additional) Bonus may also be declared
under the plan in the year when the policy results into death claim during the
policy term or due for the survival benefit payment provided the policy is in full
force and has run for certain minimum term.
2. Optional Benefit:
LICs Accidental Death and Disability Benefit Rider: LICs Accidental
Death and Disability Benefit Rider is available as an optional rider by payment
of additional premium during the policy term. In case of accidental death during
the policy term, Accident Benefit Sum Assured will be payable as lumpsum
along with the death benefit under the basic plan. In case of accidental
permanent disability arising due to accident (within 180 days from the date of
accident), an amount equal to the Accident Benefit Sum Assured will be paid in
equal monthly installments spread over 10 years and future premiums for
Accident Benefit Sum Assured as well as premiums for the portion of Basic
Sum Assured which is equal to Accident Benefit Sum Assured under the policy,
shall be waived.

2. Jeevan Shree-I
Product summary:
This is an Endowment Assurance plan offering the choice of many convenient premiums
paying terms. It provides financial protection against death throughout the term of plan
with the payment of maturity amount on survival to the end of the policy term.
Premiums:
Premiums are payable yearly, half-yearly, quarterly or through Salary deductions, as opted by
you, throughout the premium paying term or till earlier death. Alternatively premium may be
paid in one lump sum (Single premium).
Guaranteed Additions:
The policy provides for the Guaranteed Additions at the rate of Rs. 50/- per thousand Sum
Assured for each completed year for first five years of the policy. The Guaranteed Additions
34
are payable along with the Basic Sum Assured at the time of claim.
Bonuses:
The policy participates in the profits of the Corporations life insurance business from the 6th
year onwards. It will get a share of the profits in the form of bonuses. Simple Reversionary
Bonuses will be declared per thousand Basic Sum Assured annually at the end of each
financial year. Once declared, they will form part of the guaranteed benefits of the plan.
Benefits
Death Benefit:
The Sum Assured along with guaranteed additions and vested bonuses, if any, is payable
in a lump sum on death of the life assured during the policy term.
Maturity Benefit:
The Sum Assured along with guaranteed additions and reversionary bonuses, if any is
payable in a lump sum on survival to the end of the policy term.
Supplementary/Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra
protection/option. An additional premium is required to be paid for these benefits.
Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender value
is available on the plan on earlier termination of the contract.
Guaranteed Surrender Value:
The policy may be surrendered after it has been in force for 3 years or more. The
guaranteed surrender value is 30% of the basic premiums paid excluding the first years
premium. In case of a single premium policy the guaranteed surrender value is 90% of
the single premium paid excluding any extra premium.
Corporations policy on surrenders:
In practice, the Corporation will pay a Special Surrender Value which is either equal to
or more than the Guaranteed Surrender Value. The benefit payable on surrender
reflects the discounted value of the reduced claim amount that would be payable on
death or at maturity. This value will depend on the duration for which premiums have
been paid and the policy duration at the date of surrender. In some circumstances, in
case of early termination of the policy, the surrender value payable may be less than the
total premium paid.


35




LICS NEW BHIMA BACHAT:

LICs New Bima Bachat is a participating non-linked savings cum protection
plan, where premium is paid in lump sum at the outset of the policy. It is a
money-back plan which provides financial protection against death during the
policy term with the provision of payment of survival benefits at specified
durations during the policy term. In addition, on maturity, the single premium
shall be returned along with Loyalty Addition, if any. This plan also takes care
of liquidity needs through its loan facility.
a) BENEFITS: Death benefit: On death during the first five policy years:
Sum Assured. On death after completion of five policy years: Sum Assured
along with Loyalty Addition, if any.
b)Survival Benefits: Payable as given below in case of Life Assured
surviving to the end of the specified durations: For policy term 9 years:
15% of the Sum Assured at the end of each of 3rd & 6th policy year For
policy term 12 years: 15% of the Sum Assured at the end of each of 3rd, 6th &
9th policy year For policy term 15 years: 15% of the Sum Assured at the
end of each of 3rd, 6th, 9th & 12th policy year
c) Maturity Benefit: Payment of Single Premium (excluding taxes and extra
premium, if any) along with Loyalty Addition, if any, in case of Life Assured
surviving to the end of the policy term.
d) Loyalty Addition Depending upon the Corporations experience the policies
shall be participate in the profits and shall be eligible for Loyalty Addition. The
Loyalty Addition, if any, is payable on death after completion of five policy
years and on policyholder surviving to maturity, at such rate and on such terms
as may be declared by the Corporation.


36

PENSION PLANS
1. LICs NEW JEEVAN ANAND
LICs New Jeevan Nidhi Plan is a conventional with profits pension plan with a
combination of protection and saving features. This plan provides for death
cover during the deferment period and offers annuity on survival to the date of
vesting.
1. Benefits:
a. Benefit on Vesting: Provided the policy is in full force, on vesting an amount
equal to the Basic Sum Assured along with accrued Guaranteed
Additions, vested Simple Reversionary bonuses and Final Additional
bonus, if any, shall be made available to the Life Assured.

The following options shall be available to the Life Assured for utilization of the
benefit amount.
1. To purchase an immediate annuity
The Life Assured shall have a choice to commute the amount available on
vesting to the extent allowed under Income Tax Act. The entire amount
available on vesting or the balance amount after commutation, as the case may
be, shall be utilized to purchase immediate annuity at the then prevailing annuity
rates. Commutation shall only be allowed provided the balance amount is
sufficient to purchase a minimum amount of annuity as per the provisions of
section 4 of Insurance Act, 1938.
In case the total benefit amount is insufficient to purchase the minimum amount
of annuity, then the said amount shall be paid as a lump sum to the Life assured.
The annuity shall only be purchased from Life Insurance Corporation of
37
India. or
1. To purchase a new Single Premium deferred pension product from Life
Insurance Corporation of India
Under this option the entire proceeds available on vesting shall be utilized to
purchase a single premium deferred pension product provided the policyholder
satisfies the eligibility criteria for purchasing single premium deferred pension
product.
The Life Assured will have to intimate his / her intention to go for a particular
option available on the date of vesting atleast six months prior to the date of
vesting.
b. Death Benefit:
Death during first five policy years: Provided the policy is in full force, Basic
Sum Assured along with accrued Guaranteed Addition shall be paid as lump
sum or in the form of an annuity or partly in lump sum and balance in the form
of an annuity to the nominee.
Death after first five policy years: Provided the policy is in full force, Basic Sum
Assured along with accrued Guaranteed Addition, Simple Reversionary and
Final Additional Bonus, if any, shall be paid as lump sum or in the form of an
annuity or partly in lump sum and balance in the form of an annuity to the
nominee.
In any case, provided all due premiums have been paid, the total death benefit at
any time shall not be less than 105% of the total premiums paid (excluding
taxes, extra premium and rider premium, if any).
The amount of annuity will depend on the payable lump sum and the then
prevailing immediate annuity rates.
c. Guaranteed Additions: The policy provides for Guaranteed Additions @
Rs.50/- per thousand Basic Sum Assured for each completed year, for the
38
first five years.

d. Participation in profits: Provided the policy is in full force, depending upon
the Corporations experience the policies shall participate in profits from
6th year onwards for a Simple Reversionary Bonus at such rate and on
such terms as may be declared by the Corporation.
Final (Additional) Bonus may also be declared under the policy in the year when
the policy results into a claim either by way of death or on vesting, provided the
policy has run for certain minimum term.
1. Optional Benefit:

LICs Accidental Death and Disability Benefit Rider: LICs Accidental
Death and Disability Benefit Rider is available as an optional rider by payment
of additional premium under regular premium policies. In case of accidental
death, the Accident Benefit Sum Assured will be payable as lumpsum along
with the death benefit under the basic plan. In case of accidental disability
arising due to accident (within 180 days from the date of accident), an amount
equal to the Accident Benefit Sum Assured will be paid in equal monthly
instalments spread over 10 years and future premiums for Accident Benefit Sum
Assured as well as premiums for the portion of Basic Sum Assured which is
equal to Accident Benefit Sum Assured under the policy, shall be waived. If the
policy becomes a claim either by way of death or the policy vests before the
expiry of the said period of 10 years, the disability benefit instalments which
have not fallen due will be paid in lump sum.
The Accident Benefit Sum Assured may be opted for an amount upto the Basic
Sum Assured subject to minimum of Rs. 1,00,000 and maximum of Rs. 50 lakh
(under individual as well as group policies with LIC of India). This benefit will
be available only till the vesting age.
39

UNIT PLANS
1. Market plus-I
This is a unit linked pension plan wherein the pension is payable after
a specified period. Four types of investment Funds namely Bond, Secured,
Balanced and Growth Fund are offered. Though primarily a Pension product,
the plan has many attractive features and options which make it an ideal
Retirement solution for the future.
BENEFITS
A) - On Vesting:
On vesting of the policy, the Fund Value will be utilized to provide a pension
based on the then prevailing Annuity rates. An option to commute up to one
third of the payable benefit in a lump sum is available.
B) On Death:
In event of the unfortunate death of the policy holder the Fund Value along
with the Riders, if any, will be payable in a lump sum or as a pension.
OPTIONS
Three attractive benefits, viz. - Life Cover, Accident Benefit and Critical Illness
Benefit are available as options or riders. Life option is available within certain
limits depending on the age at entry of the life assured. The other options are
available to all proposers who have opted for Life Cover. The quantum of the
risk covers can also be reduced; subject to the minimum limits, once a year. A
policy can be taken without any of the riders also.
REVIVAL
An attractive feature of the plan is that provided the premiums have been paid
40
for a minimum period of three years, all the riders under the policy will continue
for a period of two years from the due date of first unpaid premium by
deduction of relevant charges from the policy fund. This period of two years is
called the Revival Period. Further, if premiums have been paid for a
minimum period of three years, revival can be effected merely by paying the
arrears of premium, within the Revival Period.
PAYMENT OF PREMIUMS
Premiums can be paid in a lump sum (single premium) and also by monthly
(ECS), quarterly, half-yearly and yearly modes.
CHANGE IN FUND TYPE (SWITCH)
The plan also allows a policy holder to switch from one type of fund to another
up to four times a year, free of charge.
OTHER FEAUTRES
There will be no spread between the Bid and Offer price. The Net Asset Value
(NAV) will be declared on a daily basis. Additional premium in multiples of
Rs.1,000 can be paid without any limit at anytime during the term of policy.











41

SPECIAL PLANS
1. Bima Nivesh
Features
Bima Nivesh 2005 is a plan with compound rate of guaranteed additions and
loyalty additions. This is the revised version of our popular Bima Nivesh Plan
2004 and is introduced to meet the overwhelming demand for a single premium
plan from our customers. It is a single premium, ideal investment plan for those
who have no regular income but good periodical income. Bima Nivesh 2005 is
available for terms 5 and 10 years. The guaranteed surrender value is payable
after the policy has run for at least one year. Term Assurance Rider is also
available by payment of a single premium at the option of the proposer.
Benefits
Guaranteed Additions: Guaranteed additions at the compound rate of Rs.50
per thousand Sum Assured per annum for the policy with term of 5 years and at
the compound rate of Rs.55 per thousand Sum Assured per annum for the policy
with term of 10 years.
Loyalty Addition: Depending upon the Corporation's experience with regard
to mortality, interest and expenses and based on term of the policy, Loyalty
addition, if any, may be declared by the corporation and paid on maturity.
Maturity Benefit: The Basic Sum Assured along with compounded
Guaranteed Additions will be payable. Loyalty addition, if any, will also be
added to this benefit.
Payment on death: In case of the unfortunate death of the Life Assured
during the term of the policy, Sum Assured along with the accrued guaranteed
additions will be payable.
42
Surrender Value: Surrender value is payable after the policy has run at least
for one year.
Riders: Term Assurance rider is available.
Eligibility conditions and other restrictions
For the Main Plan Term Assurance Option
Min. Age at entry 13 years completed 18 years completed
Max. Age at entry 70 years 50 years
Max. Maturity
Age
75 years 60 years
Policy Term 5 yrs. and 10 yrs Same as main plan
Sum Assured
Rs.25,000.
Maximum No
limit.
Min. Sum Assured -
Rs.1,00,000/-
Max. Sum Assured - An amount
up to the basic Sum Assured for
Term Assurance subject to a
maximum of Rs.25 lakh overall
Option limit, under all policies
of the life assured.
Premium Rates:
Single Premium rates for Rs.1000 Sum Assured are Rs.995 for 5 years term and
Rs. 976 for 10 years term;
The Term Rider Premium depends on the age nearer birthday and the term of
the policy.
REBATES
1% of basic premium on the premium in excess of Rs.50,000.
Rs.500 plus 1.5% of basic premium on the premium in excess of Rs.1,00,000.

43

LOAN
Loan will be available to the policyholders under this plan within the Surrender
Value.





















44

GROUP SCHEME
1. Group Term Insurance Scheme
A) Nature of the Scheme:
Group (term) Insurance Scheme is meant to provide life insurance protection to
groups of people. Administration of the scheme is on group basis and cost
is low. Under Group (Term) Insurance Scheme, life insurance cover is allowed
to all the members of a group subject to some simple insurability conditions
without insisting upon any medical evidence. Scheme offers covers only on
death and there is no maturity value at the end of the term.
B) Premium Chargeable:
Group (Term) Insurance Scheme is at present offered under One Year
Renewable Group term assurance plan (OYRGTA). Every year on Annual
Renewal date LIC charges the premium depending upon the changes in size and
age distribution of the age group.
C) Different Schemes:
Group (term) Insurance Scheme has a number of varieties. The Scheme may
provide for a uniform cover to all members of the group or graded covers for
different categories of members, cover for all amounts of outstanding housing
loans or vehicle advances, or some other benefits (e.g., life cover to supplement
pension or PF benefits in case of death). The schemes may have add-ons like
Double Accident Benefit, Critical Illness Benefit, Disability benefit etc.
D) General Features of various Group Insurance Schemes:
1. PREMIUM:
The premium under such scheme may be wholly paid by the employer or the
Nodal Agency. However, the scheme may be contributory i.e. the members may
also contribute.
45
2. DOUBLE ACCIDENT BENEFIT:
Double Accident Benefit, i.e. payment of double the sum assured on death due
to accident (without permanent disability benefit), may be allowed under Group
Insurance Schemes for an extra premium.
3. ELIGIBILITY:
For Group Insurance Scheme in lieu of EDLIS the insurability condition is that
should be a member of the Provident Fund Scheme of the employer. For other
GI Schemes of employer-employee groups the insurability condition is that the
member should not be absent on ground of sickness on the entry date. For all
non-employer-employee Group Schemes the basic insurability condition is that
the member should be in good health on the date of entry.
4. ADMINISTRATION OF THE SCHEME:
At the commencement and thereafter on each Annual Renewal Date, the Group
Policyholder will have to send all the member's data (and particulars of the new
entrants from time to time) to the P & GS unit of LIC. Detailed OYRGTA
premium calculation will be made on each Annual Renewal Date.











46

2. Janashree Bima Yojana (JBY)
Features
The objective of the scheme is to provide life insurance protection to the rural
and urban poor persons below poverty line and marginally above the poverty
line.
ELIGIBILITY: A person who is *Aged between 18 and 59 years. *Below
or marginally above poverty line *A member of any of the approved
vocation/occupation groups.
NODAL AGENCY: A State Government Department which is concerned
with the welfare of any such vocation/occupation group, a Welfare Fund/
Society, Village Panchayat,NGO,Self-Help Group,etc.
MINIMUM MEMBERSHIP SIZE: Twenty five.
FORMS FOR JANASHREE BIMA YOJANA 1. Claim form & discharge
receipt under JBY ( Annexure A )
2. Application for scholarship under Shiksha Sahayog Yojana ( Proforma A )
3. List of students eligible for scholarship under Shiksha Sahayog Yojana (
Proforma B)
4. Certificate of utilisation ( Proforma C )
BENEFIT ENHANCED
In the events of *Death (other than by accident) of the member,an amount of
Rs.30,000/- is payable. *death/total permanent disability, due to accident,an
amount of Rs.75,000/-is payable. *Permanent partial disability, due to
accident, an amount of Rs.37,500/- is payable.

47

PREMIUM : *The premium under the scheme is Rs.200/-per annum per
member. *50% of the premium i.e. Rs.100/- will be contributed by the member
and/or Nodal Agency/State Government. *Balance 50% will be borne by the
Social Security Fund.
APPROVED VOCATION & OCCUPATIONAL GROUPS:
A) The group that can be covered are like workers in -
(i) Foodstuffs like khandsari
(ii) Textile
(iii) Manufacture of wood products
(iv) Manufacture of paper products
(v) Manufacture of leather products
(vi) Printing
(vii) Rubber and coal products
(viii) Chemical products like candle manufacture
(ix) Mineral products like earthern toys manufacture
(x) Fire cracker's workers
(xi)Construction workers
(xii)Other related cottage industries to be identified by Nodal Agencies and
other groups as identified by the Nodal Agency and approved by LIC.
B) The occupational groups are : Beedi workers, Brick Kiln
Workers(Jalandhar),Carpenters, Cobblers, Fisherman, Hamals, Handicraft
Artisans, Handloom Weavers, Handloom and Khadi Weavers, Lady Tailors,
48

Leather and Tannery Workers, Papad Workers attached to 'SEWA', Physically
Handicapped self- Employed Persons, Primary Milk Producers, Rickshaw
Pullers/ Auto Drivers, Safai Karmacharis, Salt Growers, Tendu Leaf Collectors,
Scheme for the Urban Poor, Forest Workers, Sericulture, Toddy Tappers,
Powerloom Workers, Scheme for Women in Remote Rural Hilly Areas.





















49

HEALTH PLAN
JEEVAN AROGYA:
LIC's Jeevan Arogya is a unique non-participating non-linked plan which
provides health insurance cover against certain specified health risks and
provides you with timely support in case of medical emergencies and helps you
and your family remain financially independent in difficult times.
Health has been a major concern on everybodys mind, including yours. In
these days of skyrocketing medical expenses, when a family member is ill, it is
a traumatic time for the rest of the family. As a caring person, you do not want
to let any unfortunate incident to affect your plans for you and your family. So
why let any medical emergencies shatter your peace of mind.
LICs Jeevan Arogya gives you:
2. Valuable financial protection in case of hospitalisation, surgery etc
3. Increasing Health cover every year
4. Lump sum benefit irrespective of actual medical costs
5. No claim benefit
6. Flexible benefit limit to choose from
7. Flexible premium payment options
Very easy to choose your plan

Step 1
Choose the level of Health cover you need
Step 2 Work out the premium payable along with our Representative
Step 1: Choose the level of Health cover you need:
You can choose the amount of Initial Daily Benefit (i.e. the daily Hospital Cash
Benefit applicable in the first year of the policy) as per your need from out of
50
the following choices:

` 1000 per day
` 2000 per day ` 3000 per day ` 4000 per day
This is the amount that will be payable to you in the event of hospitalisation in
the first year on a per day basis. The Major Surgical Benefit that you will be
covered for will be 100 times the Initial Daily Benefit you have chosen. Thus
the initial Major Surgical Benefit Sum Assured will be ` 1 lakh, 2 lakh, 3 lakh,
4 lakh respectively. Other benefits such as Day Care Procedure Benefit, Other
Surgical Benefit and Premium waiver Benefit (PWB) mentioned below shall
also be payable depending upon the daily Hospital Cash Benefit chosen.
Step 2: Work out the premium payable along with our
representative Your premium will depend on your age, gender, the Health
cover option you have chosen, whether you are Principal Insured or other
insured life and the mode of payment.

Tables below give an indicative annual premium, payable yearly, for all health
benefits corresponding to an Initial Daily Benefit of ` 1000 per day, for some of
the ages in respect of various lives that can be covered under a single policy:
PRINCIPAL INSURED (Male)

Age at entry
Premium (`)
20 1922.65
30 2242.90
40 2799.70
51
50 3768.00
SPOUSE (Female) / PARENT (of PI/Spouse) (Female)

Age at entry
Premium (`)
20 1393.15
30 1730.65
40 2240.60
50 2849.10
CHILD

Age at entry
Premium (`)
0 792.00
5 794.75
10 812.35
15 870.75
(Premiums indicated are exclusive of Service Tax)
Who can be insured? You (as Principal Insured (PI)), your spouse, your
children, your parents and parents of your spouse can all be insured under one
policy. Quite a relief isnt it, to have all insured under one policy! The
minimum and maximum age at entry is as under:
52
Minimum age at
entry
Maximum age at entry
Self / spouse 18 years 65 years (last birthday)
Parents / parents-in-law 18 years 75 (last birthday)
Children 91 days 17 years (last birthday)
How long are each insured under this policy? Each of the insured are
covered for Health risks up to age (80). Children are insured up to age 25 years.

















53





TAX BENEFITS

The aggregate amount of deduction under all the relevant sections viz. section
80C, section 80CCC and section 80CCD shall not, exceed Rs.1 Lakh.
1) Deduction from Income for payment of Premium (Sec. 80C).
(a)life insurance premia.
The insurance premia paid for a policy is eligible for deduction. The premium
paid should not be in excess of 20% of capital sum assured.
(b) Contribution to Deferred Annuity Plans:
The premia paid for a Deferred Annuity; provided such contract does not
contain a provision to exercise an option by the insured to received a cash
payment in lieu of the payment of annuity is eligible for deduction.
(c) Contribution to Pension/Annuity Plans:
Contribution to New Jeevan Dhara-I and New Jeevan Akshay-V Schemes of
LIC are qualified for rebate under this section.
2) Income tax exemption on Maturity/Death Claims proceeds under Section
10(10D)
All the benefits payable under a Life Insurance policy are tax free. However in
cases the premium paid in excess of 20% of the capital sum assured within a
year, benefits paid excess of premiums will be taxable. The benefits from a key
54
man Insurance policy and any sum received under Sec 80DD, Sub-section (3)
are also taxable.
3) Jeevan Nidhi Plan & New Jeevan Suraksha - I Plan (U/s. 80CCC)
Amounts paid from the taxable income to premiums of the above annuity are
deductible.
4) Deduction under section 80D Medical Premium paid for a Health
Insurance policy is deductible to the extent of Rs. 15000 for an assessee
and/or his family members policy/s. A separate exemption to the extent of
Rs. 15,000 for premiums paid for an assessees parent is also available. If
any one or both of the parents are Senior citizens, then an enhanced
exemption limit of Rs. 20,000 is available. Section 80D also covers payment
of premium exclusively for Critical Illness Rider.
5) Jeevan Aadhar Plan (Sec.80DD)
Premium paid for LICs Jeevan Aadhar Plan (for the maintenance of an
handicapped dependent) is eligible for deduction from the total income to the
extent of Rs.50,000 and to the extent of Rs.75,000/- where handicapped
dependent is suffering from specified severe disability.
6) Exemption in respect of commutation of pension under
Jeevan Suraksha & Jeevan Nidhi Plans. (Section 10(10A):
A payment received by way of commutation of pension from Jeevan
Suraksha & Jeevan Nidhi Annuity plans is exempt from tax.





55







56 years of Nation building
LIC the pride of India
On 1st September 2012, LIC completes 56 years of its glorious and purposeful
existence. It was on this day in the year 1956, that LIC of India came into being
with the government of India nationalizing the life insurance business through
an ordinance on 19
th
January 1956. Ever since 1956, LIC has progressed from
strength to strength. In the process, it has fulfilled its objectives and has been
immensely contributing to the nation building activities. Today, LIC is an
Institution of national importance and operates at a very large scale and
efficiency. It has created a significant value for its customers and dominates the
life insurance industry in our country. LIC has institutionalized a culture of
Trust within its organization which is the basis for its extraordinary success. LIC
has grown today to be the premiere public sector financial institution and the
pride of India.
LIC has invested Rs. 8,19,835 crores as on 31.3.2012 in central/state
government securities, power generation, road transport, water supply, housing
and other social activities. LIC has played a very important role in nation
building. LICs contribution to the Five Year Plans has been commendable. It
contributed Rs. 184 crore to the second Five Year Plan (1956-61), Rs. 3,
94,779 to tenth Five Year Plan (2002-2007) and Rs.7,04,151 Crores to the
eleventh Five Year Plan (2007-2012. The most amazing aspect is that around
25% of internal borrowings of the central government are met by LIC every
56
year. On an initial investment of Rs.5 crores in the year 1956 by the Union
Government, its share of the valuation surplus of 5% for the year 2011-12
worked out to be Rs. 1281.23 Crore. With an investment of just Rs.5 crore, till
this fiscal year end, the government received a cumulative dividend of Rs.
11,376.10 Crore which is unimaginable in any other institution. The
Government of India has entrusted several social security schemes to LIC. Over
1.63 crore landless households under Aam Aadmi Bima Yojana till date are
covered by LIC. Taking up the cause of financial inclusion, over 57.76 lac
people have been insured under LICs Micro insurance schemes. As a part of
Corporate Social Responsibility, the Golden Jubilee Foundation has been
dedicated to the cause of promoting education, health and to provide relief to the
people who are poor. So far LIC has sanctioned more than 140 projects worth
Rs.18.06 crores, across the country. LIC Golden Jubilee Scholarship Scheme
provides scholarship to economically weaker sections of the society to pursue
higher education. Every year 1000 deserving students are given scholarship

under this scheme dedicated towards nation building; LIC is one of the strongest
pillars of Indias social and economic structure.
Ever since the opening up of the insurance sector in the year 2000, LIC is
performing marvelously dominating the insurance market. The public sector
LIC has surprised the critics with a very strong performance.
The Compounded Annual Growth Rate (CAGR) of LIC during the last ten
years has jumped to 30.24% from 15.23% since inception. LICs total policies
have risen from 10.12 Croresin to 34 Crores in conventional business along with
10.45 crores of customer base in group business. LICs Life fund has grown
from 1.54 lakh crore to 12.83 lakh crore. LICs asset base has grown from 1.60
lac crore to 14.17 lakh crore by September 2012. The new business premium has
gone up from Rs.5930 Crore to Rs. 81515 Crore. Total Premium Income has
57
increased from Rs.27489 Crore to 202802.90 Crore. Thus, through this amazing
performance, LIC has retained its domination over the market. It is holding on
to a market share of 81 percent in number of policies and 74 percent in new
business premium. The LIC has also an impressive share of 87.4% in the total
assets under management. Insurance is a promise which needs to be fulfilled on
the happening of an eventuality. LIC settles 99.86% of the claims which is a
world record. The track record of the private insurance companies on settlement
of claims is abysmally low. In spite of such a strong performance, it is
surprising to note that the rating agencies to facilitate the entry of foreign capital
to access the domestic savings of the Indian people, are trying to arm twist by
down grading the investment rating of LIC ironically quoting that LIC is
exposed to investments in government securities.
The performance of private insurance companies even after a decade of
operation is not encouraging. Out of the 23 private insurance companies, 16
have reported operating losses and majority of them are yet to break even. The
private insurance companies sell more than 90% of their policies in ULIPs
where the returns are dependent on the vagaries of the volatile stock market.
According to the government, the public sector LIC has dominated the
investment in infrastructure development by accounting for more than 94%
where as the private companies are unable to invest for infrastructure
development of our country.
In spite of the sterling performance by the Life Insurance Corporation of India,
the government, under pressure from the international finance capital, is making
attempts to weaken the public sector. The Insurance Laws (amendment) bill
2008 which seeks to increase the FDI cap in insurance from 26% to 49% is a
pointer in this direction. More Over, the hurdles created by IRDA with regard to
clearing new plans, in recruitment of agents, suspending group superannuation
scheme (P&GS) etc are all the hindrances which LIC is able to successfully
overcome till now.
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ARTICLES

1. LIC turns 56 today; sells 367 lakh policies
in one year India's largest domestic institutional investor, Life Insurance
Corporation of India (LIC), which turns 56 year old today, sold a
whopping 357 lakh policies last year, a commanding 80.9% market share
of new policies issues.

India's largest domestic institutional investor, Life Insurance Corporation of
India (LIC), which turns 56 year old today, sold a whopping 357 lakh policies
last year, a commanding 80.9% market share of new policies issues. Its total
first year premium income was pegged at more than Rs 81514.49 crore
including Rs 38955.06 crore of premium through Pension and Group schemes
i.e. 71.36 % of the market share. In pension and group schemes, new lives
insured were 284.12 lakhs under conventional business and 94.44 lakh lives
under social security schemes. In the year 2011-12, 185.7 lakh claims
amounting to Rs 66022.82 crore were settled. Nearly 93.19% of total maturity
claims were settled on or before the date of maturity and 94.34% of non-early
death claims were settled within 15 days of intimation. The outstanding maturity
claims ratio is as low as 0.5% and the outstanding death claim ratio is 1.22%.
Total payments to policyholders aggregated to Rs. 112,911.82 crore. LIC has
launched a new micro insurance product 'Jeevan Deep' on today. This is an
endowment assurance with an added feature of guaranteed additions along with
provision of Loyalty addition. An immediate annuity product is available for
'on-line buy'.
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2. LIC also keeps the economy healthy.
BUSINESS TODAY
Edition:August 21, 2011
As a home loan officer with a private sector bank, Yatindra Pathak says he has
often heard people say: "Mere pass ICICI ka hi LIC hai" (I have ICICI's LIC).
LIC, or the Life Insurance Corporation of India, is practically synonymous with
insurance in the country. And with good reason: despite 22 private entrants into
the industry since it was liberalised in 2000, LIC has the lion's share.

At Rs 86,445 crore, it notched up an overwhelming 69 per cent share of first
premiums in 2010/11 - nearly 22 per cent more than in the previous year. By
contrast, private insurers garnered a cumulative Rs 39,831 crore, which worked
out to an annual growth of 2.56 per cent.
The sailing has not been all smooth, though. In 2009/10, 75 per cent of LIC's
new business came through unit-linked insurance policies, or ULIPs. But
regulators questioned the governance of these products. The Securities
Exchange Board of India wanted to oversee them because of their high
investment component, and the Insurance Regulatory and Development
Authority wanted to continue overseeing them as they did, after all, provide
insurance.

The insurance regulator framed stringent norms for ULIPs. "The entire sales
focus has now moved to non-ULIP products," says an LIC official who asked
not to be named. With lower advisor commissions and ULIP sales, new business
premiums for the industry as a whole shrank 12 per cent in April-May 2011
60
compared to the previous year. Business dropped eight per cent for LIC, and 23
per cent for private insurers.

LIC's nationwide sales force of 1.34 million advisors is just one of its strengths.

"The government guarantee gives it the edge on private players," says the head
of a private insurer. Of course, the guarantee does not come free. LIC is among
India's largest institutional investors, and the biggest participant in state and
public sector bond issues. Its i nvestments in 2009/10 were Rs 10.96 trillion, of
which roughly 92 per cent was in securities, and 7.75 per cent was in loans. In
2009/10, LIC paid Rs 3,625 crore in taxes, and another Rs 1,030 crore was the
government's five per cent share of LIC's life fund valuation surplus. So LIC not
only insures lives, but also helps keep the economy healthy.
LIC is the industry leader, with a 69 per cent market share in 2010/11

Compared to 2.6 per cent annual growth in first-year premiums for private
insurers, LIC recorded growth of nearly 22 per cent in 2010/11

LIC has the largest sales force of 1.34 million advisors, as of March 2010

LIC's 13.1 per cent expense ratio (including advisor commission) is lowest in
the world

With total investments of Rs 10.96 trillion, LIC was India's largest institutional
investor as of March 2010.









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CONCLUSION

After completing the project it is concluded that LIC develop its various plans
and policies, flexible in nature, according to the requirements of its targeted
market or customers and is thus beneficial to its customers in various ways. The
most important benefit it provides to its customers is that it is a government
owned company. This lead to increase in the satisfaction level of its customer
that is why LIC has more than 200 million policyholders which is equal to the
fourth largest country in world. Therefore it is not only beneficial but better than
other insurance companies not only regarding its product but also its services.