10 STEPS TO SUCCESS

To successfully sell life insurance today, keep these points in mind.

  1.  Aggressively mine for referrals and profile your current clientele.
  2.  Learn to manage the indecisiveness of your clients and prospects.
  3.  Capture every opportunity.
  4.  Increase your client retention.
  5.  Don’t forsake the middle market.
  6.  Focus on value selling.
  7.  Partner with other advisors.
  8.  Specialize.
  9.  Sell the client what he needs.
  10.  Above all, have a passion for what you sell.

10 insurance myths that can prove costly

10 insurance myths that can prove costly
Even though I do not like to write about life insurance, I get too many questions about life insurance. So I
thought I should do a follow up story on - If you died tonight, what will your family do?. So I've created some
client questions which I hear every day and decided to debunk them.

1. Should I buy life insurance on my child’s name?
The answer is No, Nein, Nyet, Nahi, Nako, Vendam, Na. I am a linguist but there ends my vocabulary for the word 'NO'. In any language, and in any part of the world, there is no logic for buying life insurance for a person on whom nobody is financially dependent. I have heard arguments like ‘What if my child is diabetic and cannot get life insurance later on?’ If this argument is taken to its logical conclusion, you should be buying a policy for at least a few crores, if you take inflation into account – and all companies will deny it. So do not bother.

2. Should I buy unit linked policies as an investment?
This is a very difficult question to answer. So I will split the answer into various parts. Find out how much is
the amount that is getting invested and far more importantly what are the fund management charges? (also
called asset management charges). As a ball park figure, look for fund management charges lesser than 1%.
You will find unit linked policies as well as index funds in that category. Choose only such policies immaterial
of the upfront charges. If you are not comfortable with index funds, choose mutual fund ‘managers’ with an
excellent track record.

3. Will I really get a policy for 30 years where I have to pay premium for only three years?
A toughie! Every insurance salesman will be up in arms if I say no. I would still stick to my answer. You will have to pay for at least one third of the tenure of the policy. Which means if you take a 30-year plan be prepared to pay for at least 10 years. Vanishing premium promises have resulted in a lot of vanishing policies in the US and Europe.

4. I have some old policies from Life Insurance Corporation. My new agent is asking me to surrender them. What should I do?
Well, the recent love for equities has meant equity haters have all become equity lovers. You need to anyway maintain a balance between equity and debt, so continuing your old LIC policies is not such a bad idea after all. Especially, if your policies have already run for 10 years, the chances are the premium that you may be paying may not be high compared to your current income level. In a worst-case scenario, make it fully paid up – where you do not have to pay the future premium and a reduced cover continues to be available.
(Also read- Money laundering and your life insurance)

5. We are the biggest company in…!
You can fill in the blank as you wish - USA, Europe, among mutual funds, insurance companies. The question to ask is how does it matter to you. All the companies that I know in the private sector make some claim or the other.

6. Our parent companies' credit rating is higher than that of the Government of India; excellent, but
er… where do you invest?
Well, we do invest in Government of India securities. So how does the rating help you the policy holder?
Search me!

7. I have adequate life insurance but my broker is talking about critical illness insurance. Do I need
it?
Well, it is your call. Critical illness insurance appeals to all of us. If I have a critical illness, at least I will get a
lump sum, which will take care of some expenses. Please read the policy literature carefully, show it to a doctor if you need to. Most agents find the clauses too difficult to interpret. Do not buy it if you do not understand it. It is your money.

8. My group insurance is adequate
That is a joke. If you are between jobs, you have no cover. If the company goes through a bad phase and
does not pay the premium you are doomed. So, chuck your group insurance and take one on your own.

9. My credit card gives me some insurance
Same as group insurance. Your life insurance should be a contract between you and the insurance company. Any other mode is risky. I have not heard of anybody who says “My husband died in an accident and I got Rs 5 lakhs from an accident claim on his credit card insurance”. And I have met more than 10,000 people whom I have spoken about life insurance – these are the people who have attended my seminars or training boot-camps.

10. I am adequately insured, my CA told me
Please do not confuse adequate ‘premium’ for Section 80C with adequate life cover. Go to a professional (no
not your neighbour, in-law, colleague)

reasons why you should not select a person as your agent

8 reasons why you should not select a person as your agent
The key to quality insurance is in choosing a good quality agent. The word agent comes from the Indian
Contract Act, 1872 and it is the Christian name for the guy who brings an insurance/mutual fund product
to your doorstep.
Nowadays, they have various names like consultant, advisor, and the like, but I will use the word in its
real meaning. Many people do not think it is really material as to whether you select a good quality
agent or a friendly neighbourhood agent. Risk cover and wealth management are both things that you
need to plan for, much in advance.
Imagine thinking you have cover for medical emergencies, but realizing that it is not renewed after you have had an
accident. Imagine getting up on your 55th birthday and realizing your retirement target amount is 15 years away. It will be
too late to react. So choose an agent carefully because he/she can make your sunset years golden or dim.
The agent is omnipresent. For most of us, we follow an anti-selection process rather than a selection process to zero in
on an agent. So here’s a set of strong reasons for not selecting a person as an agent:
1. He is a neighbour. This can mean he is available for you, not that he is best. Typically, if he has meandered in his
career and at last decided that selling insurance or mutual fund is his calling, then that may not be sufficient to chose
him.
2. The brother-in-law, sister-in-law, father-in-law syndrome. Same as above. If they have built a business over a long
period of time, that is a good basis for selection. Not otherwise.
3. Length of being in the business: normally this is an excellent reason to buy from a person. However, in some cases, it
might mean that these are not enough reasons. Check if he/she is unbiased. Normally such people get stuck to one
company and so many years of brainwashing has lulled them into believing all good things happen only in that company
and other companies are bad. For example, in India you will find enough insurance agents saying ‘private companies
may not pay the claim’. This is hogwash. All private companies are reputed and have come with very, very strong
partners. Let's not kid ourselves. They will all pay. In case they decide to leave India, they will sell their portfolio to an
Indian company and then leave. Look at Sanmar.
4. It’s the boss’s wife; I have absolutely no excuses to offer. Play it by the ear, or get your CV ready.
5. It is a customer’s wife; keep the premium to the Diwali gift level.
6. It's your bank; They know the exact amount of money in the bank, they know where you eat, how you travel, what
school your kids go to, which credit card you have, but if they cannot plan your finances, be careful.
7. The guy who does not talk about term insurance at all. It is not to say that term insurance is the best, or it is most
suitable, but he should offer it to you. He should tell you that there is something called top up in a unit-linked plan. He
should tell you about single premium products. You choose the end product. He should give you the choices and
complete menu of products.
8. The agent/bank/advisor who sold you a plan that somebody knowledgeable called a lemon. If you have been had
once, that is enough. Do not repeat it.

Money Back plan-75 | plan-93

Presenting New Money Back -
LIC’s most popular money plan
in two variants –
Plan 75 : A 20-year policy
Plan 93 : A 25-year policy
The original, basic money back policy
High liquidity
Helps to fulfil your regular needs as well as
long term needs
Guaranteed survival benefit : 15%/20% of
basic sum assured paid at regular intervals
of 5 years.
Survival benefits already paid, are not deducted,
if claim arises in case of unfortunate death.
A with-profit policy, bonus calculated on full sum
assured, despite regular survival benefit payouts.
Now, loans available under the policy
Optional benefits include term assurance rider and
critical illness rider on payment of small additional
premium.
Who can avail of this plan?
Minimum age at entry : 13 years (completed)
Maximum age at entry under Plan 75 : 50 years (nearest birthday).
Maximum age at entry under Plan 93 : 45 years (nearest birthday).
For how many years is risk cover available?
Under Plan 75 : policy term is 20 years.
Under Plan 93 : policy term is 25 years.
For what amount is risk cover available?
Minimum Sum Assured is Rs. 50,000. There is no maximum limit for
Sum Assured but it depends on income.
Is there any limit on maximum age at maturity?
Yes, maximum age at maturity allowed: 70 years.
For how many years is premium payable?
Throughout the term.
On death of the Life Assured during the term of cover under the rider, an amount equal to the Term Assurance Sum Assured will be payable. This benefit is available on payment of small additional premium.
Eligibility
(A) Minimum & maximum age at entry: 18 years (lbd) & 50 years (nbd)
(B) Maximum age at maturity : 60 years
(C) Minimum Sum Assured for the Term Rider : Rs. 1,00,000
(E) Minimum S.A. of main plan on which Term Rider is given : Rs.1,00,000
(F) Maximum S.A. for Term Rider: An amount equal to the Basic S.A.
subject to a max Rs. 25 lakhs overall
limit on term riders on all plans).
(G) Term : 10 to 35 years under regular premium policies;
5 to 35 years under Single premium policies
&15, 20 and 25 years under limited premium paying term policies.
This rider shall be allowed only if age at maturity under the main policy is less than or equal to 60 years. The policy term and premium paying term of the rider should match with the policy term and premium paying term under the main policy.
The Critical Illness Sum Assured will be payable on the life assured surviving for a period of 28 days from the date of occurrence of any of the following critical illnesses-
Heart Attack (Myocardial Infarction)
Stroke (Cerebro-vascular Accident)
Cancer
Kidney Failure
Major Organ transplant
Paralysis
3rd Degree Burns
Blindness
Coronary Artery By-pass Surgery
Heart Valve Replacement or Repair
Aorta Graft Surgery
Critical Illness Rider : Eligibility
(A) Minimum entry age : 18 yrs (completed)
(B) Maximum entry age : 50 yrs (nearer birthday)
(C) Maximum maturity age : 60 years
(D) Minimum Sum Assured for the Critical illness Rider : Rs.50,000/=
(E) Minimum Sum Assured of the Main plan on which the Critical illness
Rider can be given: Rs.50,000
(F) Maximum Sum Assured : An amount equal to the Basic Sum for the
Critical Illness Rider Assured, subject to a maximum of Rs.5,00,000.
(G) Term : 10 to 35 years under regular premium
5 to 35 years under Single premium
and 15, 20 & 25 years under limited premium paying term policies.
This rider is allowed only if the maturity age under main policy is not greater than 60 years.
The policy term and premium paying term of the rider should match with the policy term and premium paying term under the main policy.

Death Cover :
Sum Assured + Vested Bonuses + Final Additional Bonus, if any, is payable in a lump sum on death of the life assured during the policy term.

Maturity Benefit:
40% of the Sum Assured + Vested Bonuses + Final Additional Bonus, if any, is payable in a lump sum on survival to the end of the policy term
This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life.
The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed.
3. The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification.
4. Future bonus will depend on future profits and as such is not guaranteed. However, once bonus is declared in any year and added to the policy, the bonus so added is guaranteed.

10 Good reasons for jeevan nidhi

There are more than 5.5 crore people
aged more than 60 years
in India today.
By the year 2016, 11.3 crore
people in India are expected
to be aged greater than 60 years
Average educated Indian
is expected to live 20 years
beyond his retirement age
Retirement is a wonderful opportunity
to live a new life, develop new interests
make new contributions to society
You need not compromise on
your lifestyle even
when you retire
Financial independence
will enable you to live life
your own way even after
Life expectancy has increased considerably
Costs of living and health care have risen
Joint family system has disintegrated
Interest rates have fallen significantly
Standard of living has to be maintained.
All the above circumstances
necessitate sufficient & consistent income
after you retire from work
Businessmen, Professionals, Shopkeepers, Agriculturists
Employees in the new age industries like BPOs, Call Centers
need regular income when they retire from work
in the same fashion as employees who are
provided pensions through their employers.
Our country has a large number of such
professionals, businessmen, agriculturists & also
employees in the New Age industries.
Jeevan Nidhi provides risk cover during the deferment period.
Options are available for term assurance cover, critical illness cover, premium waiver cover.
Enables planning for retirement
from an early age of 18 years,
in small instalments
There are options
for five different types of annuities
Option available to start pension
from as early as age 40 years
to age 70 years.
Premium paid upto Rs. 10,000 in a year
is eligible for Income Tax rebate
under Sec. 80 CCC(1) of Income Tax,, 1961.
Deferment period 5 to 35 years are available.
Premium can also be paid in a single instalment.
It guarantees an amount equal to :
Sum Assured + Guaranteed Addition @ Rs. 50 per thousand sum assured per annum for first 5 years
+
Simple reversionary bonus from 6th year onwards + Terminal Bonus, if any.
Above amount will be used to provide annuity on date
of vesting.
If unfortunate death occurs earlier to vesting, amount
paid to beneficiary in lump sum.
It will spare you of the worries of ‘tomorrow’
and enable you to enjoy your ‘today’.
There is a need to provide for ‘risk of living longer’
in the same way we secure against ‘risk of dying early’.

10 good reasons to jeevan bharati

India has more working women
than any other country in the world.
A study shows that India has more women doctors, surgeons, scientists and professors than the United States.

In many organizations,
there are significant number
of women employees,
even at the apex end of the hierarchy.

Women outnumber men
in the New World industries
like call centers, BPOs etc.

Today’s woman excels at home and at work
Her income is no longer secondary
She too needs financial security
and also can provide
financial security for her family.

Very few life insurance products
exist in India today
which are specially designed
to cater to needs of women.
LIC is the pioneer in
introducing a plan for women.

The critical illnesses covered
under Jeevan Bharati
are those which occur
more commonly.

Special needs of Indian Women
are taken care, in the form of
extended life cover,
enhanced Survival Benefit if availed later,
advance premium payment.

In the event of financial difficulty, ‘premium holiday’* is available with option to revive policy at later date*

Regular cash flow
in the form of survival benefits
every 5 years and
non-reducing risk cover despite payouts.

Else the wife’s life insurance agent

will be different

from the husband’s.

10 Good reasons for Jeevan Anurag

10 Good resion for Jeevan Anurag
As per the Census 2001,
children in the age group 0-14 years
constitute 35-40% of India’s population.
They are the future of the country
Children need
proper education from
reputed educational institutions to open the door of opportunities
in a highly competitive environment.

Not only are finances required
for university & professional education
but also for preparatory coaching

Helping fulfill financial needs
right from childhood days
will help build up a
long time trust and relationship.

The child grows with LIC.

Cost of higher education
has increased considerably over the years.
It will rise further in the years to come.

No parent shall want to compromise
their child’s education for lack of finances

Prudent parents will plan well in advance
to finance their children’s higher education.

Cost of living is ever increasing
These rising costs will put demands on
income of people.
Setting aside a lump sum
for future education
is difficult in today’s scenario.
Best alternative is to set aside
smaller amounts regularly

Apart from higher education
children may require financial support
for start-in-life or marriage.

Life is uncertain
Parents would like to ensure
good education and a bright career
for their children
despite life’s uncertainties.

Parents would desire to have
flexibility in their financial planning.

They would want to decide
the timing of the receipts
from their insurance plan
as per the requirements
of their child’s education.

When the parents’ dream
for their child is fulfilled
the agent will have great satisfaction
of having done a fine job as a
‘complete insurance advisor’

Blma Bachat ( Plan 175 )

Introduction Df LlC's Blma Bachat ( Plan 175 )

It has been decided to introduce LIC's Bima Bachat (plan no.175) with effect from 14th November, 2005.

1. INTRODUCTlON:
This is a single premium money back type plan where Single Premium paid under the policy shall be paid back to the policyholder along with Loyalty Additions, if any, on maturity. In addition, the survival benefit installments are payable on survival of the policyholder till the specified durations. The plan also provides for the payment of Sum Assured in case of death during the term of the policy irrespective of whether or not any survival benefits have been paid earlier. No rider benefits shall be available.

2. BENEFITS:

Death Benefit: On death of the Life Assured during the term of the policy, an amount equal to the Sum Assured ¬shall be payable.

Survival Benefit: In case the life Assured is surviving to the end of the specified durations the following benefit shall be payable:
Policy term 9 years: 15% of the Sum Assured at the end of 3rd & 6th policy year
Policy term 12 years: 15% of the Sum Assured at the end of 3rd, 6th & 9th policy year.
Policy term 15 years: 15% of the Sum Assured at the end of 3rd, 6th, 9th & 12th policy
year

Maturity Benefit: Single Premium paid excluding extra premium along with Loyalty Additions, If any, shall be payable in case of Life Assured surviving to the end of the term.

3. LOYALTY ADDITIONS:

This is a participating plan and the policy shall participate In the proms of the Corporation’s with-profits assurance business. The policy shall, however not be eligible for reversionary bonuses and shall participate to a share of profits in the form of Loyally Addition (one time) only payable on maturity. On the Life Assured surviving, the stipulated date of maturity, the policy may be eligible for payment of Loyalty Addition, if any, depending upon the experience of the Corporation at such rate and on such terms as may be declared by the Corporation.


4. LOAN:

Loan facility is available under this plan. The rate of Interest to be charged for loan amount would be determined from time to time by the Corporation. Presently the rate of interest is 9% p.a. payable half-yearly.

5. REBATES / INCENTIVE FOR HIGH SUM ASSURED:

High Sum Assured Rebates (As Percentage of Basic Tabular Premium):
Less than Rs.50,000 : NIL
Rs.50,000 to less than Rs.1,00,000 : 5%
Rs.1,00,000 to less than Rs.2,00,000 : 7%
Rs.2,00,000 and above : 8%

6. CEIS REBATE:
The rebate for eligible employees of the Corporation shall be @ 2% of the Tabular Premium for the basic plan.

7. MODES OF PREMIUM PAYMENTS:
Premium is payable once at the beginning of policy term.

8. ELIGIBILITY CONDITIONS AND RESTRICTIONS:

Minimum age at entry: 15 years (completed)
Maximum age at entry : 66 years nearer birthday
Maximum age at maturity: 75 years nearer birthday
Terms : 9, 12 or 15 years.
Minimum Sum Assured: Rs.20.000/-
Maximum Sum assured: No limit
Sum Assured will be in multiples of Rs.5,000I- only.

9. PREMIUM RATES:
As enclosed In Annexure 1.

10. EXTRA PREMIUM RATES:
As enclosed In Annexure 2.

11. CREDIT:
Commission to Agents, Corporate Agents and Brokers Is payable 0 2% of the Single Premium received. No Bonus Commission will be payable.'

Development Office’s Credit for Incentive: 5% of Single premium

12. UNDERWRITING, AGE PROOF AND MEDICAL REQUlREMENTS:
Same as Blma Nlvesh Plan.

13. SURRENDER VALUES (G8V,SSV):
The policy can be surrendered for cash after completion of at least one policy year. The Guaranteed Surrender Value is equal to 90 per cent of the Single Premium paid excluding extra premium paid and the survival benefits paid earlier.

For calculation of Special Surrender Value, the amount of Single Premium paid excluding any extra/optional premium shall be taken as paid-up value and Surrender Value Factors for quarterly elapsed durations are given In Annexure 3.

14. NORMAL REQUIREMENTS FOR CLAIM:

The normal documents which the claimant shall submit while lodging the claim in case of death of the policyholder shall be the claim forms, as prescribed by the Corporation, accompanied with the original policy document, proof of title, proof of death, proof of accident/disability, medical treatment prior to death, employer's certificate, whichever is applicable, to the satisfaction of the Corporation. If the age is not admitted under the policy, the proof of age of the Life Assured shall also be submitted.
Where the policy results into a maturity claim or in case of surrender of the policy, the Life Assured shall submit the discharge form along with the original policy document besides proof of age, If the age Is not admitted earlier.

15. COOLING-OFF PERIOD:

If a policy holder is not satisfied with the "Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy.

16. BACK DATING INTEREST:

The policies can be dated back within the financial year, as usual. Back- dating interest will be charged al the rate of 9% p.a. for dating back in excess of one month. This rate is subject to revision. The Interest shall be charged even where the policy is beck dated to a lean month. .

17. POLICY STAMPING:

Policy stamping charges will be 20 paise per thousand Sum Assured.

18. REINSURANCE:

There will be no reinsurance under this plan.

19. ASSIGNMENT / NOMINATIONS:

Notice of assignment or change of nomination should be submitted for registration to the office of the Corporation, where this policy is serviced. In registering an assignment or nomination the Corporation does not accept any responsibility or express any opinion as to its validity or legal effect.



20. PROPOSAL FORM: Proposal Form No. 300 or 340 will be used for the plan.

21. POLICY DOCUMENT: A specimen copy of the Policy Document is enclosed as
Annexure 4.

Chief (Actuarial)

ANNEXURE - 1 ANNEXURE - 3
Single Premium for 1000 SA S.S.V. Factors
Age / Term 9 12 15 Completed Duration in Years S.S.V. Factor As % of Paid-up Value
14 718.20 771.20 803.80 1.00 90.25
15 716.40 771.35 804.00 1.25 91.50
16 716.80 771. 50 804.10 1.50 92.75
17 718.80 771.60 804.20 1.75 94.00
11 716.95 771.70 804.25 2.00 95.25
19 717.05 771.80 804.35 2.25 95.50
20 717.20 771.85 804.40 2.50 97.75
21 717.30 771.95 804.50 2.75 99.00
22 717.35 772.00 804.50 3.00 84.00
23 717.40 772.05 804.65 3.25 85.25
U 717.50 772.15 804.80 3.50 86.50
25 717.55 772.25 804.95 3.75 87.75
26 717.65 772.40 805.10 4.00 89.00
27 717.75 772.55 805.30 4.25 90.25
28 717.95 772.75 805.55 4.50 91.50
29 718.15 773.00 805.80 4.75 92.75
30 718.45 773.35 806.10 5.00 94.00
31 718.80 730.70 806.45 5.25 95.25
32 719.25 774.10 808.90 5.50 96.50
33 719.75 774.60 807.40 5.75 97.75
34 720.40 775.156 807.95 6.00 83.00
35 721.05 775.75 808.55 6.25 84.25
36 721.80 776.45 809.25 6.50 85.50
37 722.85 777.25 810.05 6.75 86.75
38 723.60 778.15 810.95 7.00 88.00
39 724.85 779.15 811.90 7.25 89.25
40 725.80 780.25 812.95 7.50 90.50
41 727.15 781.50 814.10 7.75 91.75
42 728.80 782.80 815.35 8.00 93.00
43 730.25 784.25 816.65 8.25 94.25
44 732.10 785.90 818.10 8.50 95.50
45 734.10 787.60 819.60 8.75 95.75
46 736.30 788.45 821.20 9.00 82.00
47 738.85 791.40 822.95 9.25 83.00
ANNEXURE - 1 ANNEXURE - 3
Single Premium for 1000 SA S.S.V. Factors
Age / Term 9 12 15 Completed Duration in Years S.S.V. Factor As % of Paid-up Value
48 741.20 793.45 824.80 9.50 84.00
49 743.85 795.80 828.80 9.75 85.00
50 746.60 787.90 828.95 10.00 88.00
51 748.45 800.40 831.25 10.25 87.00
52 762.40 803.00 833.8O 10.50 88.00
53 755.60 805.85 836.10 10.75 89.00
54 758.00 808.90 838.80 11.00 90.25
55 762.65 811.95 841.75 11.25 91.50
56 768.85 816.20 844.90 11.50 92.75
57 770.85 818.75 848.20 11.75 94.00
58 775.10 822.65 851.75 12.00 81.00
59 779.75 828.85 855.50 12.25 82.50
60 784.80 831.30 859.35 12.58 84.00
61 790.50 838.15 - 12.75 85.50
62 798.45 841.10 - 13.00 87.00
63 802.70 - . 13.25 88.50
64 809.40 . . 13.50 90.00
65 816.25 . . 13.75 91.50
66 823.15 - . 14.00 93.00
14.25 94.50
14.50 96.00
14.75 97.50

NEW BUSINESS DURING THE YEAR 1/4/2006 TO 31/3/2007


Profile – 2006-2007

The Life Insurance Corporation of India has been a nation-builder since its formation in 1956. The performance of LIC has been exemplary and has been growing from strength to strength be it customer base, agency network, branch office network, new business premium and the like and has significant role in spreading life insurance widely across the country. True to the objectives of nationalisation, the LIC has mobilised the funds invested by the people for life insurance for the benefit of the community at large. Today in the current scenario, our vision is to emerge as a world class customer centric organisation.
Some highlights of our performance are as follows:

NEW BUSINESS DURING THE YEAR 1/4/2006 TO 31/3/2007
( Individual Assurances )

Policies
(in lakh) Sum Assured (in crore) First Premium Income(in crore)
COMPOSITE 382.09 3,03,115.54 39,541.58
Growth Rate
21.02 %
5.42 %
118.64 %

PENSION & GROUP BUSINESS & SOCIAL SECURITY SCHEMES

ACHIEVEMENT FROM 1.4.2006 TO 31.03.2007

Pension & Group Schemes Growth Rate Social Security Schemes Growth Rate
No. of New lives 84.02 lac 64 % 57.48 lac -9 %
Premium Income (Rs. In crore) 11282.58 188 % 94.34 61%


BUSINESS IN FORCE AS ON 31.3.2007

Policies (in crore) Sum Assured
(Rs. in crore)
Individual Assurances 21.26 15,90,877

Group Insurance(lives) 4.19 3,24,716

Other Parameters 1/4/06 TO 31/03/07

(Rs. In Crores)
1. Total Income: Rs.1,74,424.76
2. Total Premium Income: Rs.1,27,782.26
3. Amount of claims paid: Rs. 36,537.22
4. Total Life Fund: Rs.5,60,806 (As on 31.3.07)
5. Total Assets: Rs.6,51,883 (As on 31.3.07)


PEOPLE'S MONEY FOR PEOPLE'S WELFARE

The Life Insurance Corporation of India has been a nation- builder since its formation in 1956. True to the objectives of nationalization, the LIC has mobilised the funds invested by the people in life insurance for the benefit of the community at large.
The Corporation has deployed the funds to the best advantage of the policyholders as well as the community as a whole, true to the spirit of nationalisation. National priorities and obligation of reasonable returns to the policy holders are the main criteria of our investments.
The total funds, so invested for the benefit of the community at large accumulated to Rs. 6,13,266.58 crore as on 31st March, 2007. The investment of the Corporation's funds is governed by Section 27A of the Insurance Act, 1938, subsequent guidelines / instructions issued thereunder by the Government of India from time to time, and the IRDA by way of regulations. As per the prescribed investment pattern approved by
IRDA, the controlled funds are invested as follows:-
Not less than 50% is invested in Govt. Securities or other approved Investments.
Not less than 15% is invested in infrastructural and social sector Investments.
Not exceeding 35% in others to be governed by exposure prudential norms.



Awards Won

We enlist some of the recent awards received by LIC:
1. Outlook Money NDTV Profit –“ Best Life Insurer Award “ was conferred upon LIC
2. LIC has also won the “Golden Peacock Award” for Excellence in Corporate Governance
3. “Web 18-Genius of the Web Award” was also conferred on us for the best website in Insurance Category.
4. Adjudged “Number One Service Brand” in India by Economic Times and AC Neilsen ORG Marg for the year 2007 for the fourth consecutive year.
5. Award for “Customer and Brand Loyalty” in the Insurance Sector
6. LIC adjudged as “ Best Life Insurance Company of the Year “-at the Second NDTV Profit Business Leadership Awards-2007
7. LIC adjudged the “ Most Preferred Life Insurance Company of the Year” at the CNBC Awaaz Consumer Awards 2007 third time in succession.
8. Awarded Reader Digest’s “Trusted Brand” 2006 (voted by consumers) as well as 2007
9. Largest Financial Institutional Investor – both in equity market and term loans.
10. LIC - An Institution Builder promoting many financial and insurance institutes like NSE, NCDEX, LIC Mutual Fund, Stock Holding Corporation of India, National Insurance Academy, Insurance Institute of India etc.
11. LIC is the second largest PC user in the country.

OUR PRODUCTS
1. We have in our basket of schemes more than 40 different plans catering to the changing needs of different segments of the society – basic insurance plans ( whole life, endowment and money back), Term Assurance Plans, Pension Plans, Capital market linked Plans etc.

2. Our New product launches
1. New Bima Gold
2. Gratuity Plus
3. Jeevan Madhur (Micro Insurance)
4. Market Plus
5. Child Career Plan & Child Future Plan.
6. Jeevan Amrit
7. Fortune Plus
8. Profit Plus


CLAIM SETTLEMENT PERFORMANCE (2006-2007)
1. Total Claims Settled – Over 132 lakh claims.
2. LIC settles over 45600 claims every working day i.e.2.21 claims per second.
3. 96.99% of Maturity Claims are settled on or before the date of maturity.
4. 92.06% of Non-early Death Claims are settled within 20 days of intimation.
5. O/s Claims Ratio – (Maturity + SB) is 0.07 %, Death Claims is 2.03 %

Customer Centric Initiatives

Claims Review Committee :
The Corporation settles a large number of death claims every year. Only in case of fraudulent suppression of material information will the liability be repudiated. The number of death claims repudiated is, however, very small. Even in these cases, an opportunity is given to the claimant to make a representation for consideration by the Review Committees at the Zonal Office and the Central Office. As a result of such review, depending on the merits of each case, appropriate decisions are taken. The Claims Review Committees at the Central and Zonal Offices have among other members a retired High Court / District Court Judge.

Grievance Redressal Machinery :
Policyholders' Grievance Redressal Cells exist in all the Offices of the Corporation, headed by Senior Officers who can be approached by policyholders for redressal of their grievances, on any day but particularly on every Monday between 2.30 p.m. and 4.30 p.m.without prior appointment.

All Branch Offices -Chief Manager / Sr./ Branch Manager
All Divisional Offices -Marketing Manager
All Zonal Offices -Regional Manager (CRM)
Central Office -Executive Director / Chief / Secretary (CRM)

The policyholder can avail of himself / herself the facility of toll-free telephone systems in Delhi and Mumbai or contact us through the LIC website www.licindia.in. LIC's website is rich in information on products / services.

Scheme of Ombudsman :
The Grievance machinery has been further expanded with the appointment of the Insurance Ombudsman by the Government of India at different Centres. Complaints of the following types come within the purview of thje Ombudsman's consideration.
* Repudiation of liability under claims.
* Delay in settlement of claims.
* Any dispute regarding premiums paid or payable in respect of the policy.
* Any dispute regarding the legal construction of the policies in relation to a claim; and
* Non-issue of insurance document to customer after receipt of premium.


ALTERNATIVE PREMIUM PAYMENT CHANNELS


1) Internet Payment :
As many as seven Banks - HDFC, ICICI, Centurian Bank of Punjab, AXIS Bank, Corporation Bank, Federal Bank and Citibank and Bill Collection Service Providers - Billjunction.com, and Billdesk.com are our Service Providers. Any policyholder who has a bank account in India can use this facility.

2)Electronic Clearing Service (ECS) :
This service is currently available in selected cities. It will be extended to other Centres where the RBI has extended their ECS facility. A policyholder having an account in any Bank which is a member of the local Clearing House can opt for ECS debit to pay premiums. The advantage in this system is that once the option is exercised, the policyholder need not visit a Branch for payingthe premium or collecting the receipts. On the day indicated by the policyholder, the premium amount will be directly debited to the Bank Account of the policyholder and the receipt will be issued by the designated Branch Office.
ECS Monthly Mode : ECS channel of premium payment for Monthly mode policies introduced from proposal stage for all plans without the 5% extra charge. The Mandate Form, duly certified by the Banker has to be submitted along with the Proposal Form for new policy. You can download the mandate form from our website www.licindia.in

3) ATMs of Corporation Bank and AXIS Bank :
Premium can be paid through the ATMs of Corporation Bank and AXIS Bank. This service is available for Corporation Bank and AXIS Bank Account Holders who are also our policyholders. Policy information will be available at the ATM during the days of grace for premium payment. On payment of premium, the policyholder will get an acknowledgement reciept from the ATM and later on, a designated Branch will send the actual receipt to the policyholder.
Online collection of premium through AXIS Bank : Renewal Premium can be paid at all AXIS Bank Branches either by using AXIS Bank cheques and/or by cash. A receipt is generated by the Bank and signed on behalf of LIC by the AXIS Bank Official and handed over to the customer.


Portal : The policyholder has to enroll his/her policies at our corporate web site: www.licindia.in and can pay premium by clicking on the Online Premium Payment tab. This facility is available only for customers having access to net banking facility of the following select banks - Bank of India, Union Bank of India, Punjab National Bank, State Bank of India, State Bank of Indore, HDFC, ICICI Bank, AXIS Bank, Citi Bank, IDBI Bank, Centurion Bank of Punjab, IndusInd Bank, ABN AMRO Bank, Kotak Bank, Bank of Baroda and two service providers billjunction.com, billdesk.com .

The premium receipt can be printed online and will also be e-mailed to the policyholder at the same time.





INFORMATION TECHNOLOGY IN LIC

Having been one of the very first and largest users of I.T. In terms of hardware and in-house developed software, LIC of India has adapted its existing technologies and new emerging technologies to meet the changing needs.
1) All the job processes of Branch Offices have been Computerised.
2) All 2048 Branch Offices are now connected through the Wide Area Network.
3) Customer-centric initiatives:
* Portal for our customers has been set up. This portal will be a single outlet for an array services. These services include policy status, bonus calculation, loan quotation, list of lapsed policies along with revival quotation, premium calendar, change of address, doctor locator, agent locator, premium payment gateway.
* A similar portal is available also for agents.
* Enterprise Document Management System to mack LIC a paperless office is to tack off shortly
INFO CENTERS
With a view to help customers interact easily from place of theirconvenience, LIC has set up INFO CENTERS in the following 8 places Delhi, Kolkata, Mumbai, Ahmedabad, Pune, Hyderabad, Bangalore and Chennai. The INFO CENTERS and IVRS have been integrated and can be accessed through a universal Access Number: 1251. The INFO CENTERS work from 8 AM to 8 PM from Monday to Friday and from 10 AM to 6 PM on Saturdays. INFO CENTERS provide information on products, policy status, policy servicing, Telephone Nos. and addresses of our Offices and any other information the customer would want.
SATELLITE OFFICES
With a vision of providing easy access to its policyholders, LIC has launched 159 SATELLITE OFFICES offices. These satellite offices, which are attached to the respective parent branches, are basically an extension of the large parent branches for services to policy holders. Processing of new proposals and collection of renewal premium are main functions of these offices.
NEW OFFICES
A new East-Central Zonal Office has been opened at Patna, catering to the needs of the states of Bihar, Jharkhand and Orissa. Five New Divisions have been formed namely – Faizabad, Shimoga, Pune II Rohtak, Kharagpur.

OUR SOCIAL RESPONSIBILITY

LIC offers life insurance protection under group policies to various groups such as employer-empoyee, co-operatives, weaker sections of society etc. and insurance coverage to people at subsidized rates under social security group schems like Janashree Bima Yojana. Aam Admi Bima Yojana - It is a Scheme for Rural Landless Households. The scheme is of the Central and State / Union Territory Governments and administered by LIC.
Jeevan Madhur - LIC has launched a micro-insurance cum savings plan with profits wherein premiums can be paid in weekly, fortnightly, monthly, quarterly, half-yearly or yearly intervals was introduced last year. The sum assured varies from Rs 5000/- to Rs 30,000/-.
Golden Jubilee Foundation was formed with a view to channelise our social responsibilities and to give a formal shape to the same a public trust named Golden Jubilee Foundation was formed with a purpose of undertaking charitable activities namely, relief of poverty or distress, education, medical relief and advancement of any other object of general public utility.

GROUP INSURANCE SCHEME FOR CONFIRMED TIED AGENTS

GROUP INSURANCE SCHEME FOR CONFIRMED TIED AGENTS OF THE CORPORATION

It has been decided to introduce a Group Insurance Scheme for Confirmed Tied Agents of the Corporation w.e.f. 1st September, 2007. The details of the same are as under.

A. GENERAL

1. Date of Commencement: The Date of Commencement of the Scheme is 01.09.2007.
2. Purpose of the Scheme: The purpose of the scheme is to offer insurance to all the confirmed tied agents of the Corporation, who have completed one year from the date of appointment.
3. Confirmed Agents: Agents confirmed and completed one year from the date of his appointment.
4. Eligibility: All the Confirmed tied Agents who have completed one year from the date of appointment and who are aged less than 65 years. For details refer scheme rules
5. Coverage and Premium: The insurance cover is as under:

Category Agency Standing at Credit
As at 31.08.2007. Cover Premium Rs. p.a.
I 1 to 3 Years 50,000 120/-
II >3 to 5 Years 1,00,000 240/-
III >5 to 10 Years 3,00,000 720/-
IV More than 10 Years 5,00,000 1,200/-


5. Servicing of the Scheme: The Scheme will be serviced by the P&GS Units who are at present servicing Group Schemes in their Divisional areas as per Annexure ‘A’.



B. FUNCTIONS OF BRANCH OFFICES ON LIFE SIDE (OTHER THAN P&GS UNITS)

1. The Marketing Dept., C.O., will be issuing a detailed circular about the procedural formalities. This will be the basis for administration aspects.
2.
a. The scheme is compulsory for all the confirmed agents and for those agents whose agency will be confirmed on or after the date of commencement of the scheme.
b. A Negative option is provided for all the existing eligible agents, who are confirmed on the date of commencement of the scheme. The eligible agent, who is not interested to join the scheme, has to submit his option to opt out of the scheme on or before 31.08.2007, to the Branch where his agency is attached. In case, no such communication is received by the Branch on or before 31.08.2007, it will be construed that the agent concerned has consented to join the scheme.

c. Such agents who prefer to opt out of the scheme will not be allowed to join the scheme later.


3. As the Scheme is of compulsory in nature for all the confirmed agents, the agent who completes one year from his date of appointment in the middle of the policy year, will be covered from the date of completion of one year, where the completion of one year is on the first working day of the month. In all other cases coverage will start from the first day of the following month. Premium at the rate of Rs.10/-p.m will be deducted from the commission for the remaining months till the next policy anniversary (1st September every year).
4. The Premiums deducted by the Branch Offices should be credited to A/C Code 111158.
5. The amount to the credit of A/C Code 111158) is to be transferred to A/C Code 112133 - P&GS Contra in Life Books on 31st March of every year.
6. For control and reconciliation purpose, a sub ledger giving details of the members of the group and recovery particulars is to be maintained by each Branch and sent to P & G S Unit on 31st of March every year.
7. On receipt of intimation of death of a member, the concerned Branch will forward the claimants statement cum discharge with certificate of last premium deducted and a copy of Death Certificate to the concerned P & G S Unit, for sanction of the claim.
8. Claim will be settled by the respective P & G S Unit in favour of the Nominee and sent to the Branch Manager of the concerned Office.
9. The claim amount will be paid by the Branch to the nominee under proper receipt.
10. In case there is any existing scheme of GI for Agents of a Branch, the same shall stand terminated from the next Annual Renewal Date.


C. FUNCTIONS OF P&GS UNITS

1. The Proposal form and Rules as per the Annexure “B” have been signed at the Central Office level. Master Policy will be issued by the Central Office. Units need not issue any Master Policy at their end.
2. The Master Policy number is 693223. Each Unit should create the policy master with the above number.
3. The rules of the scheme are enclosed. Please go through the same carefully.
4. The Branch Offices will be transferring their collections towards the premium to P&GS Units on 31st March of every year through P&GS Contra Accounts along with the details as referred in B(6) above. The same will be used for adjustment of premiums.
5. The amount to the credit of A/C Code 112133 is to be appropriated to A/C Codes 9771 (First Year Premium –GI for Agents). Payment of claim is by debiting A/C Code 9033 (Death Claims –GI for Agents).
6. No change in the rules and procedures of the scheme is to be done without prior approval of Central Office.
7. At the end of the policy year, total number of members covered and total number of death reported (irrespective of the settlement of claim) is to be reported to the controlling Zonal Office which in turn will consolidate and submit to Central Office.
8. Kindly note that Double Accident Benefit is not available under this scheme.
9. P&GS Units may take credit for NB lives & NB premium credit in the month of March 2008 when the premium received in respect of all offices is finally transferred to our P&GS Unit. No credit can be taken for number of schemes.

The P & G S Units and Branch Offices of LIC are requested to bring these instructions to the notice of all concerned.






EXECUTIVE DIRECTOR (P&GS)


Encl: Annexure A: List of Offices along with P & G S Units.
Annexure B: Scheme Rules.
Claimant Statement cum Discharge form.









Annexure ‘A’

LIST OF OFFICES ALONG WITH ATTACHED P&GS UNIT

NORTHERN ZONE
Branches under the DO SERVICING P&GS UNIT
1. Ajmer Ajmer
2. Amritsar Jalandhar
3. Bikaner Jaipur
4. Chandigarh Chandigarh
5. New Delhi I New Delhi DO I P&GS
6. New Delhi II New Delhi DO I P&GS
7. New Delhi III New Delhi DO I P&GS
8. Jaipur Jaipur
9. Jalandhar Jalandhar
10. Jodhpur Jodhpur
11. Karnal Karnal
12. Rohtak * Karnal
13. Ludhiana Ludhiana
14. Shimla Shimla
15. Srinagar Jammu
16. Udaipur Ajmer

EASTERN ZONE
Branches under the DO SERVICING P&GS UNIT
17. Asansol Asansol
18. Bongaigaon Guwahati
19. Kolkata Metro I KMDO I P&GS
20. Kolkata Metro II KMDO I P&GS
21. Kolkata Subarban KMDO I P&GS
22. Guwahati Guwahati
23. Howrah KMDO I P&GS
24. Kharagpur * KMDO I P&GS
25. Jalpaiguri Jalpaiguri
26. Jorhat Jorhat
27. Silchar Silchar

EAST CENTRAL ZONE
Branches under the DO SERVICING P&GS UNIT
28. Behrampur Bhubaneshwar
29. Bhagalpur Patna
30. Cuttack Bhubaneshwar
31. Hazaribaug Jamshedpur
32. Jamshedpur Jamshedpur
33. Muzaffarpur Patna
34. Patna Patna
35. Sambalpur Sambalpur

NORTH CENTRAL ZONE
Branches under the DO SERVICING P&GS UNIT
36. Agra Agra
37. Aligarh Agra
38. Allahabad Allahabad
39. Bareilly Bareilly
40. Dehradun Dehradun
41. Gorakhpur Gorakhpur
42. Haldwani Bareilly
43. Kanpur Kanpur
44. Lucknow Lucknow
45. Faizabad * Lucknow
46. Meerut Meerut
47. Varanasi Varanasi

CENTRAL ZONE
Branches under the DO SERVICING P&GS UNIT
48. Bhopal Bhopal
49. Gwalior Gwalior
50. Indore Indore
51. Jabalpur Jabalpur
52. Raipur Raipur
53. Satna Jabalpur
54. Shadol Jabalpur

SOUTHERN ZONE
Branches under the DO SERVICING P&GS UNIT
55. Chennai DO I Chennai DO I P&GS
56. Chennai DO II Chennai DO I P&GS
57. Coimbatore Coimbatore
58. Ernakulam Ernakulam
59. Kottayam Kottayam
60. Kozhikode Kozhikode
61. Madurai Madurai
62. Salem Salem
63. Thanjavur Thanjavur
64. Thiruvananthapuram Thiruvananthapuram
65. Tirunelveli Tirunelveli
66. Vellore Vellore










WESTERN ZONE
Branches under the DO SERVICING P&GS UNIT
67. Ahmedabad Ahmedabad
68. Amravati Amravati
69. Aurangabad Aurangabad
70. Bhavnagar Rajkot
71. Gandhinagar Gandhinagar
72. Goa Goa
73. Kolhapur Satara
74. Mumbai DO I MDO I P&GS Unit – Yogakshema
75. Mumbai DO II MDO I P&GS Unit – Sion
76. Mumbai DO III MDO I P&GS Unit – Ville Parle
77. Mumbai DO IV MDO I P&GS Unit – Yogakshema
78. Nadiad Vadodara
79. Nagpur Nagpur
80. Nanded Aurangabad
81. Nashik Nashik
82. Pune Pune
83. Solapur * Pune
84. Rajkot Rajkot
85. Satara Satara
86. Surat Surat
87. Thane Thane
88. Vadodara Vadodara


SOUTH CENTRAL ZONE
Branches under the DO SERVICING P&GS UNIT
89. Bangalore I Bangalore I P&GS
90. Bangalore II Bangalore I P&GS
91. Belgaum Dharwad
92. Cuddapah Cuddapah
93. Dharwad Dharwad
94. Hyderabad Hyderabad
95. Karimnagar Warangal
96. Machilipatnam Vijayawada
97. Mysore Mysore
98. Nellore Cuddapah
99. Raichur Raichur
100. Rajahmundry Vijayawada
101. Secunderabad Hyderabad
102. Udupi Mangalore
103. Shimoga * Mangalore
104. Vishakhapatnam Vishakhapatnam
105. Warangal Warangal

* On decentralization of accounting functions to new Divisions

ANNEXURE B

GROUP INSURANCE SCHEME FOR CONFIRMED TIED AGENTS OF
THE LIFE INSURANCE CORPORATION OF INDIA
RULES OF THE SCHEME

SECTION – I

1. DEFINITIONS :

In these Rules, where the context so admits, the masculine shall include the feminine and the following words and expressions shall unless repugnant to the context, have the following meanings:-

i) “COMPANY” shall mean LIFE INSURANCE CORPORATION OF INDIA established under Section 3 of the Life Insurance Corporation Act, 1956.



ii) Master Policyholder shall be Executive Director (Marketing), LIC of India, Central Office, Mumbai – 400021.

iii) “THE NODAL AGENCY” shall mean the Branch of the Corporation and any other company / firm or Corporation which may be in future be managed or controlled by or become associated with the Corporation and which may agree to become so, by these rules

iv) “THE CORPORATION” shall mean the Life Insurance Corporation of India established under Section 3 of the Life Insurance Corporation Act, 1956.

v) “THE SCHEME” shall mean Group Insurance Scheme for confirmed Tied Agents of the Corporation

vi) “CONFIRMED AGENT” shall mean the agent confirmed and completed one year from the date of his appointment.


vii) “THE RULES" shall mean the Rules of the Scheme as set out below and as amended from time to time.

viii) “THE MEMBER” shall mean the particular Agent who has been admitted to membership of the Scheme and on whose life an assurance has been or is to be effected in accordance with these Rules.

ix) “EFFECTIVE DATE” shall mean 1st September, 2007, the date from which the Scheme commences.

x) “ENTRY DATE” shall mean (a) in respect of members joining the scheme on the effective Date, Effective Date, and (b) in respect of member joining the scheme after the effective date; the 1st working day of the month, wherever the date of completion of one year from the date of appointment is on the first working day, in all other cases the same will be the 1st of the following month in which he becomes eligible.

xi) “ANNUAL RENEWAL DATE” shall mean, in relation to the Scheme 1st September, 2008 and 1st of September in each subsequent year.

xii) “TERMINAL DATE” shall mean in respect of each Member the Date on which the Member completes the age of 65 years or the date on which the agency terminates

xiii) “THE ASSURANCE” shall mean the particular Assurance or Assurances to be effected on the life of the Member.

xiv) “THE BENEFICIARY” shall mean the person or persons who has/have been appointed by the Agent as nominee under Agents Rules 1972 as per the nomination register maintained by the Branch, where the agency is attached.

2. Nodal Agency will act for and on behalf of the Members in all matters relating to the Scheme and every act done by agreement made with and notice given to the Corporation by the Nodal Agency shall be binding on the Members.

3. ELIGIBILITY:-

(a) Agents attached to the Corporation who satisfy the following conditions:
i. Age is between 18 and 65 years.
ii. Agent is confirmed
iii. Agent who is on roll as on the effective date
iv. Agent who is on roll as on the effective date and is otherwise eligible to join the scheme, provided he has not given an option not to join the scheme.

(b) No member shall withdraw from the Scheme while he is still an eligible member satisfying the conditions of Eligibility described above.
(c) Present Agents of the Corporation though eligible but have exercised the option not to join the scheme on the Effective Date shall not be allowed to join the scheme at any future Date.
(d) All the Agents appointed on or after the date of commencement of the scheme, who are otherwise eligible, shall compulsorily join the scheme on confirmation

4. EVIDENCE OF HEALTH:

Satisfactory evidence of health as required by the Corporation shall be furnished by every Eligible member, at the time of his entry into the Scheme and on each occasion when an increase in Assurance is granted. The terms of acceptance may be varied if in the opinion of the Corporation the evidence of health is not satisfactory or other special hazards exist. At present if the agent satisfies eligibility criterion, no evidence health is required.

SECTION – II

CONTRIBUTIONS, ASSURANCE & BENEFITS

5 CONTRIBUTIONS:

The Nodal Agency shall arrange to collect and remit to the P & G S Unit of the Corporation in respect of all eligible Members/ on the member becoming eligible, in respect of each member from the entry date such contributions, as are required to secure and continue the Assurance on his life as described under Rule 6 hereunder.

Premium payable will be as under:-

Category Agency Standing at Credit as at 31.08.2007. Premium Rs. p.a.
I 1 to 3 Years 120/-
II >3 to 5 Years 240/-
III >5 to 10 Years 720/-
IV More than 10 Years 1,200/-

In respect of member confirmed during the middle of the policy year Proportionate premium at the rate of Rs.10/-p.m will be deducted from commission for the remaining months, till the next policy anniversary.


6 ASSURANCE:

An Assurance shall be effected on the life of each member under One Year Renewable Term Insurance Plan for a sum assured as under:

Category Agency Standing at Credit as at 31.08.2007. Cover
I 1 to 3 Years 50,000
II >3 to 5 Years 1,00,000
III >5 to 10 Years 3,00,000
IV More than 10 Years 5,00,000


The Assurances shall be held by the Nodal Agency UPON TRUST for the benefit of the persons entitled to in accordance with these Rules. A member eligible to move from a lower category to a higher category shall be eligible for the increased cover from the 1st of September, following the date he has qualified for higher category cover.

An agent, whose agency is confirmed in the middle of the policy year, will be covered from the date of completion of one year from the date of his appointment, where the completion of one year is on the first working day of the month. In all other cases coverage will start from the first day of the following month.


7 BENEFITS ON DEATH PRIOR TO TERMINAL DATE

On the death of the Member, whilst he is insured, prior to Terminal Date, the sum assured under the Assurance then in force shall be payable to the Nodal Agency for the benefit of the Beneficiary.

8 TERMINATION OF ASSURANCE:

The Assurance on the life of a Member shall terminate upon the happening of any of the following events and no benefit will become payable there under:-

(a) Discontinuance of contributions relating to the Assurance for any reason whatsoever.
(b) The Member reaching the Terminal Date.
(c) The Member ceasing to be agent attached to the Corporation

9 RESTRAINT ON ANTICIPATION OR ENCUMBRANCE:

T he benefits assured under the Scheme are strictly personal and cannot be assigned, charged or alienated in any way.

10 DISCONTINUANCE OR AMENDMENT OF THE SCHEME:

The Nodal Agency reserves the right to discontinue the Scheme at any time or to amend the Rules thereof on any Annual Renewal Date subject to one month notice being given to the Members and the Corporation. The Corporation reserves a similar right to discontinue the scheme subject to one month notice given to the Nodal Agency.

11 JURISDICTION:
All Assurances issued under the Scheme shall be Indian Contracts. They will be subject to Indian Laws including the Indian Insurance Act, 1938 as amended, the Life Insurance Corporation Act, 1956, the Income Tax Act, 1961 and to any legislation subsequently introduced. All benefits under the Scheme arising out of death of any Member shall be payable in Indian Rupees.

12 MASTER POLICY:

The Corporation will issue a Single Master Policy incorporating all the Assurances effected under the scheme.


13 APPOINTMENT OF BENEFICIARY:

Every Member shall appoint one or more of his wife or child/children or dependants to be his nominee. In the event of death of the Member, the Benefits then in force under the Assurance on his life will be paid to the nominee appointed by the Member and maintained by the Nodal Agency in the Register of Members kept by them. If the member does not have a wife or child/children or dependents then he shall appoint his legal personal representative to be the nominee. For this purpose the nomination register maintained by the Branch, where the agency is attached, in respect of other dues payable by the Corporation will suffice. The same nominee as appointed by the agent under Agents Rule 1972 shall be valid for payment of GI claim as well.

14 RATES OF PREMIUM AND CONDITIONS OF ASSURANCE:

The rate of premium and conditions of Assurance under which the Corporation is prepared to arrange the Scheme shall be subject to change based on claim experience and the conditions of acceptance of risks and rates of premium may be amended by the Corporation from time to time on any Annual Renewal Date subject to one month notice being given to the Nodal Agency.

15 In the case of dispute in the interpretation of any of the provisions of the Rules, the same will be referred to the Chairman of the Life Insurance Corporation of India, whose decision thereon shall be final.


Place:
Date : (Signature of Executive Director(Mktg.)
LIC of India, Central Office)

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Claim Form for Agents

LIFE INSURANCE CORPORATION OF INDIA

CLAIMANTS STATEMENT CUM DISCHARGE FORM



Name of the Scheme Group Insurance Scheme for Confirmed Tied Agents
of the Corporation. 2007
Master Policy Number 693223.

Name of the Deceased Agent ____________________________
Agency code with Branch Name _______________________________

Applicable Insurance cover on the date of Death Rs________

Was his Agency in force Yes/No

Date of death (Attach Certificate) _______________ Year of Appointment __________

Name of Nominee _____________________________
Relationship of nominee and Age _____________________________

Bank A/c details of the Nominee ____________________________

Discharge: Received with thanks from Life Insurance Corporation of India a sum of Rs_____ being the death claim proceeds receivable on the life of late ________________ ex agent of LIC of India

Signature of Nominee and Date ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬______________________________


RECEIPT
STAMP



CERTIFICATE OF CHIEF/SR/BRANCH MANAGER

This is to certify that the claimant is the nominee as per the register of Nomination. We also certify that Sri/Smt________________ was a confirmed agent and his agency was in force. The premium of Rs ____was deducted from his commission on_____under the Group Insurance Scheme for Confirmed Tied Agents of the Corporation 2007
The premium for the period ___________ was deducted from the agency commission of the agent. His Death Certificate is enclosed.
Cheque for the claim amount may be ( ) Send directly to the nominee
( Tick appropriate box) ( ) Cheque issued in favour of Branch Manager
( ) Cheque in favour of nominee be sent to branch

Chief/SR/Branch Manager __________________
Branch ________________ Date ____________
Office seal

CLUB MEMBERSHIP RULES AND BENEFITS

AGENTS’ CLUB MEMBERSHIP RULES AND BENEFITS


The concept of Agents” Club membership has been introduced in L.I.C. Of India in the year 1971, and the club membership rules were framed in May 1971

The purpose of introduction of this type of club membership to Agents ,was to give them different status and some monetary and other benefits so that there will be growth in their business performance every year. Accordingly some rules were also made for acquisition / continuation of club membership, and for acquiring membership of a higher club.
The conditions for acquiring and continuing club membership are formed under the two different categories.

Condition “ A ” Condition “ B ”

Net S.A. / Net No of lives Renewal Commission Paid
F.Y. Commission Paid
Number of lives in force


CRITERIA FOR MEMBERSHIP OF
Entry / continuation
condition Chairman’s
Club Zonal Manager’s
Club Divisional Manager’s
Club Branch Manager’s
Club
Entry under condition A
Net Sum assured( Rs. In
lacs)
Net No. of Lives.
100
170
60
115
40
90
15
45
Entry under Condition B
Renewal commission Paid
Rs.
F. Y. Commission Paid Rs.
No. of Lives in force

1,10,000
1,00,000
550
80,000
70,000
370
55,000
35,000
230
30,000
20,000
120
Continuation under Condition B
Net Sum Assured (Rs. In lacs)
Net No. of Lives
85
120
55
100
35
70
12
35
Continuation under Condition B
Renewal Commission Paid Rs.
F. Y. Commission Paid Rs.
No. of Lives in force

1,10,000
1,00,000
550
80,000
70,000
370
55,000
35,000
230
30,000
20,000
120
.



The conditions for Entry and Continuation will be as follows:

1.) Entry under condition A : The criteria is to be fulfilled in the Qualifying Year and 3 out of f. Y. preceding the Qualifying Year.
2.) Entry under condition B : The criteria is to be fulfilled in the Qualifying Year and 2 Financial Years preceding the Q. Year.
3.) Continuation under Condition A or B :The respective criteria is to be fulfilled in 3 out of 4 Financial Years preceding the Membership Year.

There are however, some Relaxation in fulfillment of qualifying criteria:
After completing the age of 60 years as on the date of commencement of club membership year and continuous member of the same club for not less the 15 membership years can continue the membership of the same club under the same condition A or B by fulfilling at least 75 % of the criteria applicable for that condition.

Credit for revived policies.:
An agent who has revived the policies in respect of business completed by him during the preceding financial year can ask for the credit for Net S .A. and No. of Lives provided the revived policies are in force as on31st March of the qualifying financial year, after submitting the necessary details. The Br. office will then confirm the particulars and arrange for the credit if the agent is falling short of the required norms.

Number of Lives in Force:
“ Number of lives in force” are the number of lives in force at the end of each relevant year out of the total business completed by the agent from the inception of the agency to the end of each such financial year. The same life if it takes more than one insurance in the same financial year will be counted as one life only.

Continuation of club Membership in the year/s of failure:

If an agent does not fulfill the condition of minimum net sum assured prescribed in the financial year reckoned to allow an agent to continue in any of the clubs, the club membership will be treated as continued for the number of years for which he has not fulfilled the condition of net sum assured as per the table given below:

No of years of continuous membership in the same club Relaxation allowed
05 One occasion
10 Two occasions





Interview for Club Membership:

Mere fulfillment of criteria for entry to any club does not confirm upon an agent the club membership unless he has been interviewed and found suitable for admission to a club by the competent Authority.

Training:

Every agent who has been admitted as a member of any club and/or whose membership is continued will be required to under go training at ZTC/STC/IFSERT/JEEVAN VIDYA TRUST or at any other institution approved from time to time.

Fringe Benefits:
The following type of fringe benefits depending upon different clubs are available to the agents.
1) Office Allowance
2) Sales Promotional Gift Items
3) Supply of Letter Heads/Envelopes/Visiting Cards
4) Telephone facility
5) Convention for C Ms & Z. M.'s club Member Agents
6) Traveling Expenses for attending Club Members Convention


Lapsation of Policies:
A Chairman's/ZM's / DM's club Member agent will be eligible for Additional Office Allowance at the following rated in the percentage of lapsation of policies is 10% or less in each of the last 3 financial years preceding the qualifying year at the following rates:

Percentage of Lapsation Additional Office Allowance %
10 or less 5
9 or less 8
8 or less 10
7 or less 12
6 or less 15
5 or less 18
4 or less 20
3 or less 22
2 or less 25
1 or less 28
Zero 30



Cases where lapsation of policies secured by an agent is more than 15% are to dealt with as follows:
a) For Existing Club Members
1) Where lapsation is > 15% ( no rounding off) for one year, there will not be
any disincentive
2) If the lapsation continues t be more than 15% for two consecutive years,
the agent will not be eligible to attend the Club Convention
3) If the lapsation continues to be over 15% for three consecutive years, the
agent will neithe be eligible for attending the convention nor for the Office
Allowance ( Stationery allowance incase of BM's club member agent) for
that particular membership year.
4) If the lapsation is over 15% for four consecutive years, the will loose his
membership of the club
5) If the lapsation of policies is greater than 15% even for one year then agent
will be kept under watch and no fresh advance for fast conveyance or
housing loan will be given till the lapse ratio remains greater than 15%
b) for agents who are aspiring to become club member:

The agents who have already qualified for club membership for i\one year or more as per the old club rules, lapsation clause will not apply to these years .Lapsation clause will apply only from qualifying year 2001-2002 onwards.


Definition of Pucca lapsed policies:
The policies under which overdue premium/s remain unpaid for more than six months from the date of the first unpaid premium are deemed to be pucca lapsed for the purpose of arriving at Net S.A. and Net No. of Lives in determining agents' eligibility for membership of any club. All policies issued in the previous financial year which stand pucca lapsed as on 31st March of the subsequent financial year are to be deducted from the policies issued in the subsequent year to arrive at the Net figure for considering the agents' eligibility for club membership under condition A irrespective of whether the first unpaid premium was due in the previous financial year or the subsequent financial year.

Life Membership:
Beginning from the Membership Year 2002-2003 Life Membership for CM and ZM clubs will be granted on fulfillment of any of the following conditions:
A) Minimum age of 60 completed years as on the date of commencement of Club
Membership year, and (Managers' club) for not less than 15membership years.
or
B) Continuous membership in the same club( either CM or ZM club) for not less
than 25 membership years.





Mementos:
At present Club Member Agents who are not covered by Group Ins. Scheme are eligible for Memento. Beginning from the Membership year 02-002 he cost of memento (including of cost of packaging, taxes etc) for various Club Member Agent will be as follows:

Types of Club Cost of Memento(Rs.)
Chairman's club 750
Z.M.'s club 375
D.M.'s club 200
B.M.'s club 100

The agent / member is required to submit the claim of membership/and or continuation on prescribed format within 30 days of New Business closing. The Office will verify the claim within 7 days of receipt. The interviews shall be completed in such a way that the results are declared by 31st July every year.

MONEY PLUS - I (Plan No. 193)

INTRODUCTION OF LIC’S MONEY PLUS - I (Plan No. 193)


1. INTRODUCTION:
It has been decided to introduce LIC’s Money Plus - I Plan (Plan No. 193) with effect from
22nd May, 2008. The Unique Identification Number (UIN) for LIC’s Money Plus – I plan is 512L248V01.This number has to be quoted in all relevant documents furnished to the policyholders and other users (public, distribution channels).

This is a unit linked Endowment plan with regular premium paying term which offers investment-cum-insurance during the term of the policy. The policyholder can choose the level of cover within the limits, which will depend on amount of premium he desires to pay. The allocated premium will be utilized to purchase units as per the selected fund type. The Policyholder’s Fund Value will be subject to deduction of charges mentioned in para 3 of this circular. Units will be allotted and cancelled based on the Net Asset Value (NAV) of the respective fund applicable to the date of allotment / cancellation. There is no Bid-Offer spread (both the Bid price and Offer price of units will be equal to the NAV). The NAV will be computed on daily basis and will be based on the investment performance, Fund Management Charges (FMC) and whether fund is expanding or contracting under each fund type. Other details of this plan are as follows.

2. INVESTMENT FUND TYPES:
The premiums allocated to purchase units will be invested according to the investment pattern prescribed for different fund types. The types of fund and their investment pattern are as under:


Fund Type Investment in Government / Government Guaranteed Securities / Corporate Debt Short-term investments such as money market instruments
Investment in Listed Equity Shares Details and objective of the fund for risk / return
Bond Fund

Secured Fund

Balanced Fund

Growth Fund Not less than 60%

Not less than 45%


Not less than 30%


Not less than 20% Not more than 40%

Not more than 40%


Not more than 40%


Not more than 40% Nil

Not less than 15% &
Not more than 55%

Not less than 30% &
Not more than 70%

Not less than 40% &
Not more than 80% Low risk

Steady Income –Lower to Medium risk

Balanced Income and growth – Medium risk

Long term Capital growth – High risk

The Policyholder will have the option to choose any ONE of the above 4 Funds.

The NAV will be computed on a daily basis as under:

Appropriation price (when fund is expanding):
Market value of investment held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any new units are allocated).

Expropriation price (when fund is contracting):
Market value of investment held by the fund less the expenses incurred in the sale of the assets plus the value of any current assets plus any accrued income net of fund management charges less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any units are redeemed).

3. CHARGES AND FREQUENCY OF CHARGES:
i. Premium Allocation Charge: This is the percentage of the premium appropriated towards charges from the premium received. The balance known as allocation rate constitutes that part of the premium which is utilized to purchase (Investment) units for the policy.

The allocation charges are as below:

Premium Band (per annum) Allocation charge
First year 2nd & 3rd year thereafter
5,000 to 75,000 26.50% 5.00% 2.50%
75,001 to 1,50,000 25.50% 5.00% 2.50%
1,50,001 to 3,00,000 24.00% 5.00% 2.50%
3,00,001 and above 23.00% 5.00% 2.50%





ii. Mortality Charge: This is the cost of life insurance cover. Mortality Charge will be taken every month by canceling appropriate number of units out of the Policyholder’s Fund Value.

Mortality charge, during a policy year, will be based on the age nearer birthday of the Policyholder as at the Policy anniversary coinciding with or immediately preceding the due date of cancellation of units and hence may increase every year on each policy anniversary. The Mortality charge shall depend upon the difference between the Sum Assured under the Basic plan and Policyholder’s Fund Value of units as on the date of deduction of charge, after deduction of all other charges and shall be deducted only if, the Basic Sum Assured is more than the Fund Value of the units on the date of deduction. Further, the charges will also depend on the underwriting decision at entry or subsequent revival of the policy.

The Mortality charge per Rs.1,000/- Sum at Risk (i.e. Sum Assured under Basic plan minus Policyholder’s Fund value) per annum for standard lives, are given in Annexure I.

The Class I extra charge for Life Cover shall be 25% of the Mortality charge for standard lives. Charge for higher EMR shall be multiples of the Class I extra charge as applicable in other plans. This extra charge will be included in the Mortality charges.

iii. Charges for optional rider covers:
Critical Illness Benefit Charge: Charges for Critical Illness Benefit rider, if any, will be taken every month by canceling appropriate number of units out of the Policyholder’s Fund Value as per the rate prevalent at the time of policy issue.

Critical Illness Benefit charges, during a policy year, will be based on the age nearer birthday of the Policyholder as at the Policy anniversary coinciding with or immediately preceding the due date of cancellation of units and hence may increase every year on each policy anniversary. Charges for Critical Illness rider shall be deducted only if this rider has been opted for.

Critical Illness cover charge per Rs.1,000/- Sum Assured for standard lives, at present, are also given in Annexure I.

Accident Benefit Charge: Charges for Accident Benefit rider, if any, will be taken every month by canceling appropriate number of units out of the Policyholder’s Fund Value as per the rate prevalent at the time of policy issue.

A level charge, at present, is at the rate of Rs.0.50 per thousand Accident Benefit Sum Assured per policy year and will be made for Accident Benefit cover by cancellation of appropriate number of units out of the Policyholder’s Fund Value every month along with the Mortality and Critical Illness Benefit charges. Charges for Accident Benefit rider shall be deducted only if this rider has been opted for.

iv. Other Charges:
a) POLICY ADMINISTRATION CHARGE - The Policy Administration charge of Rs. 60/- per month during the first policy year, Rs 20/- per month during the second year and thereafter, from the third year on wards till the end of the policy term Rs. 20/- per month escalating at 3% p.a. These charges will be deducted on monthly basis by canceling appropriate number of units out of Policyholder’s Fund Value.





b) FUND MANAGEMENT CHARGE – Fund Management Charges (FMC) are dependent on type of Fund and are deductible on the date of computation of NAV at the following rates:
0.60% p.a. of Unit Fund for “Bond” Fund
0.80% p.a. of Unit Fund for “Secured” Fund
1.00% p.a. of Unit Fund for “Balanced” Fund
1.20% p.a. of Unit Fund for “Growth” Fund
The NAV, thus declared, will be net of FMC.

c) SWITCHING CHARGE – This is a charge levied on switching of monies from one fund to another. This charge will be levied at the time of effecting switch at the rate mentioned in para 10 (a) below.

d) BID/OFFER SPREAD – Nil.

e) SURRENDER CHARGES – Nil.

f) SERVICE TAX CHARGE – A service tax charge, if any, shall be levied on the following charges
i)Policy Administration, Mortality, Accident Benefit and Critical Illness Benefit rider, if any - by canceling appropriate number of units out of the Policyholder’s Fund Value on a monthly basis as and when the corresponding Policy Administration, Mortality, Accident Benefit and Critical Illness Benefit rider charges are deducted.
ii) Premium allocation - at the time of allocation.
iii)Fund Management – at the time of deduction of Fund Management Charge.
iv)Switching - at the time of effecting switch and
v) Alteration ( as provided under Miscellaneous charge) - on the date of alteration in the policy.

The level of this charge will be as per the rate of service tax as applicable from time to time. Currently, the rate of service tax is 12% with an educational cess at the rate of 3% thereon and hence effective rate is 12.36%.

g) MISCELLANEOUS CHARGE – This is a charge levied for an alteration within the contract, such as reduction in policy term, reduction in Sum assured, change in premium mode to higher frequency, Grant of Accident Benefit after the issue of the policy etc., may be allowed subject to a charge of Rs. 50/- which will be deducted by canceling appropriate number of units out of the Policyholder’s Fund Value and the deduction shall be made on the date of alteration in the policy. The alteration will be effective from the policy anniversary coincident with or following the alteration.

The Corporation reserves the right to accept or decline an alteration in the policy. The alteration shall take effect from the policy anniversary coincident with or following the alteration only after the same is approved by the Corporation and is specifically communicated in writing to the policyholder.

v. Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except Premium Allocation charge and Mortality Charge. The modification in charges will be done with prospective effect with the prior approval of IRDA and after giving the policyholders a notice of 3 months.




4. APPLICABILITY OF NET ASSET VALUE (NAV):
The allotment of units will be as per IRDA guidelines. The guidelines state as under:

The premiums received up to 3 p.m. by the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which premium is received shall be applicable. The premiums received after 3 p.m. by the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable.

The outstation cheque / Demand draft shall not be accepted.

In respect of the valid applications received for surrender, partial withdrawal, death claim, switches, death after maturity (in case of settlement option exercised) etc up to 3 p.m. by the Servicing Branch the same day’s closing NAV shall be applicable. For the valid applications received in respect of surrender, partial withdrawal, death claim, switches etc after 3 p.m. by the Servicing Branch the closing NAV of the next business day shall be applicable

In respect of maturity claim where no settlement option is opted for, NAV of the date of maturity shall be applicable.

5. BENEFITS:
a) Benefits payable on death:
In case of death of the policyholder when the cover is in full force, the nominee shall be eligible to get higher of Sum Assured under the Basic Plan or the Policyholder’s Fund Value as at the date of booking the liability. The liability shall be booked after receipt of intimation along with death certificate. Further, if partial withdrawal has been made during the last two years from the date of death the Sum Assured under the Basic plan shall be reduced to the extent of the amount of partial withdrawals made.

If less than 3 years’ premiums have been paid and the policy is in lapsed condition, then the Policyholder’s Fund Value shall become payable to the nominee.

In case of death of the Life Assured aged less than 12 years before commencement of risk, only the Policyholder’s Fund Value shall be payable.

The risk in case of minors aged less than or equal to 10 years commences from the policy anniversary coinciding with or immediately following the completion of 7 years of age or 2 years after the date of commencement of the policy, whichever is later. In case age at entry is above 10 years but below 12 years, the risk commences from the policy anniversary coinciding with or next following the date on which life assured completes the age 12 years. In case of minors aged 12 years or more, risk will commence immediately.

b) Benefits payable on maturity:
On the policyholder surviving the date of maturity an amount equal to the Policyholder’s Fund Value is payable.

c) Options:
i. Accident Benefit Rider Option:
Accident Benefit (AB) can be availed of as an optional Rider benefit by paying an additional premium of Rs.0.50 for every Rs.1,000/- of the Accident Benefit Sum Assured per policy year by cancellation of appropriate number of units out of the Policyholder’s Fund every month. On Accidental death of the Policyholder during the term of the policy, a sum equal to the Accident Benefit Sum Assured will become payable, provided the Accident benefit cover is opted for and is in force. Further, it will be available up to the Sum Assured under the Basic Plan, subject to an overall limit of Rs.50 lakh taking all existing policies of the Life Assured under individual as well as group schemes taken from Life Insurance Corporation of India and other insurance companies and the Accident Benefit Rider Sum Assured under the new proposal into consideration.

If the age at entry of the Life Assured is less than 18 years, then Accident Benefit Rider can be opted for from the policy anniversary coinciding with or immediately following the completion of 18 or more years of age.

This benefit will be available only till the policy anniversary on which the age nearer birthday of the Policyholder is 70 years. No charges for this benefit shall be deducted from the Policy anniversary at which the benefit ceases.

ii. Critical Illness Benefit Rider Option:
An amount equal to the Critical Illness Rider Sum Assured will be payable in case of diagnosis of defined categories of Critical Illness subject to certain terms and conditions, provided the Critical Illness Benefit cover is opted for and is in force. The maximum cover for this rider will be Rs.10 lakh under all policies of the Life Assured with the Corporation taken together including the new proposal under consideration. The Critical Illness Rider Sum Assured shall also not exceed the Sum Assured under the Basic Plan.

If the age at entry of the Life Assured is less than 18 years, then Critical Illness Benefit Rider can be opted for from the policy anniversary coinciding with or immediately following the completion of 18 years of age.

This benefit will be available only till the policy anniversary on which the age nearer birthday of the Policyholder is 60 years. No charges for this benefit shall be deducted from the Policy anniversary at which the benefit ceases.

Further, this benefit will be available only once during the term of the policy (i.e. till a critical illness claim, as per the conditions defined, arises under the policy). Once a claim under this Rider has been admitted, no subsequent charge towards Critical Illness Benefit Rider shall be deducted. Charges towards Life cover and Accident Benefit cover, if any, shall however continue to be deducted on a monthly basis, as usual.

d) Premium Waiver Benefit (PWB):
No PWB will be allowed under this plan.

e) Settlement Option:
When the policy comes for maturity, the policyholder may exercise “Settlement Option” one month prior to the date of maturity.

In case this option is exercised, the maturity claim under the policy shall not be paid in lump sum. The policyholder, in that case, shall encash the units held in Policyholder’s Fund in regular (half-yearly / yearly instalments) spread over a period of not more than five years from the date of maturity. He/she shall be required to inform how he/she shall receive the maturity proceeds. The instalment shall be the total number of units as on the date of maturity divided by total number of instalments (i.e 5 and 10 for yearly and half-yearly instalments in 5 year period respectively). The number of units arrived at in respect of each instalment will be multiplied by the NAV as on the date of instalment payment. The first payment will be made on date of maturity and there after based on the mode opted by the policyholder i.e. every six months from the date of maturity or every year from the date of maturity.

Settlement Option shall not be allowed under a lapsed policy.

During the Settlement Option period no charges other than the Fund Management Charge shall be deducted. There shall not be any life cover during this period. The value of installment payable on the date specified shall be subject to investment risk i.e. the NAV may go up or down depending upon the performance of the fund.

On death of life assured after the commencement of Settlement Option period, the value of outstanding units held in Policyholder’s Fund shall become payable to the nominee/ legal heir in lumpsum.

No partial withdrawal or switching of fund shall be allowed after commencement of Settlement Option period.

6. DISCONTINUANCE OF PREMIUMS:
If premiums are payable yearly, half-yearly, quarterly or monthly (through ECS) and the same have not been paid within the days of grace under the Policy, the Policy will lapse.

The policyholder shall have an option to revive the policy within the specified period (described in para 17 below).

i. Where atleast 3 years’ premiums have been paid, the Life cover, Accident Benefit and Critical Illness Benefit riders, if any, shall continue during the revival period.

During this period, the charges for Mortality, Accident Benefit and / or Critical Illness Benefit cover, if any, shall be taken, in addition to other charges, by cancelling an appropriate number of units out of the Policyholder’s Fund Value every month. This will continue to provide relevant risk covers for :
i. two years from the due date of first unpaid premium, or
ii. till the date of maturity, or
iii. till such period that the Policyholder’s Fund Value reduces to one annualized premium,
whichever is earlier.

The policyholder may opt for continuation of cover even beyond the revival period without reviving the policy and paying any further premiums. This option shall be required to be exercised atleast one month before the completion of the revival period. If this option is availed, the cover under the policy shall continue by deduction of relevant charges out of policy fund. This option shall continue till the Policyholder’s Fund Value reaches one annualized premium. No further premiums shall be allowed to be paid after the revival period is over.

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

A. In case of Death: Higher of Sum Assured under the Basic Plan or the Policyholder’s Fund value. The Sum Assured shall be subject to provisions of Partial Withdrawals made, if any as per para 10 ( d ) below.

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

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

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

E. In case of Surrender: The Policyholder’s Fund Value. The Surrender value, however, shall be paid only after the completion of 3 policy years.

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

G. Compulsory surrender: The policy shall be terminated compulsorily in following cases:
a. The balance in the Policyholder’s Fund Value, at all times, shall be subject to a minimum balance of one annualized premium. In case the Policyholder’s Fund Value falls below this limit, the policy shall compulsorily be terminated with a notice to the policyholder and the balance amount in the Policyholder’s Fund Value will be refunded to the Policyholder.
b. In case the policy is not revived during the period of revival and the policyholder has not opted for continuing the cover after the revival period then the policy shall be terminated on expiry of revival period or on maturity, whichever is earlier and the balance amount in the Policyholder’s Fund Value will be refunded to the policyholder.

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

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

I. In case of death due to accident: Only, the amount as under H above i.e. no additional amount.

J. In case of Critical Illness claim: Nil.

K. In case of Surrender: Policyholder’s Fund Value / monetary value of units (described in para 7 below), as the case may be, shall be payable after the completion of the third policy anniversary. No amount shall be payable within 3 years from the date of commencement of policy.

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

M. Compulsory Surrender: The policy shall be terminated compulsorily in following cases:
a. In case the policy is not revived during the period of revival, then the policy shall be terminated after completion of three years from the date of commencement of the policy or on expiry of revival period, whichever is later. In case the period of revival expires before the end of third policy year, then the Policyholder’s fund value, if any, shall be converted into monetary terms and no charges shall be deducted thereafter. This monetary amount (described in para 7 below), shall be paid to the policyholder after the end of third policy year.
b. In case premiums are paid for less than three years, if the balance in the Policyholder’s Fund Value, at any time is not sufficient to recover the relevant charges, the policy shall compulsorily be terminated and the balance amount in the Policyholder’s Fund Value, if any, will be refunded to the policyholder immediately.

7. SURRENDER VALUE AND SURRENDER CHARGE:
The surrender value, if any, is payable only after the completion of the third policy anniversary. The surrender value will be the Policyholder’s Fund Value at the date of surrender. There will be no Surrender charge.

If a policyholder applies for surrender of the policy within 3 years from the date of commencement of policy, then the Policyholder’s fund value shall be converted into monetary terms. No charges shall be made thereafter and this monetary amount shall be paid on completion of 3 years from the date of commencement of policy.

In case of death of the life assured after the date of surrender but before the completion of 3 years from the date of commencement of policy the monetary value payable on completion of 3 years shall be payable to the nominee/ legal heir immediately on death.

The conversion in monetary amount shall be made as under:
The NAV on the date of application for surrender or on the date when revival period is over (in case of compulsory surrender), as the case may be, multiplied by the number of units in the Policyholder’s Fund as on that date will be the monetary amount.
Further this monetary amount shall be transferred to Non-Unit fund and the payment of surrender value, as and when due, shall be made from this fund only.

In case of policy where premiums are paid for less than three years, if the balance in the Policyholder’s Fund Value, at any time is not sufficient to recover the relevant charges, the policy shall compulsorily be terminated and the balance amount in the Policyholder’s Fund Value will be refunded to the policyholder. In case of a policy where premiums are paid for atleast three years, the balance in the Policyholder’s Fund Value, at all times, shall be subject to a minimum balance of one annualized premium. In case the Policyholder’s Fund Value falls below this limit, the policy shall compulsorily be terminated with a notice to the policyholder and the balance amount in the Policyholder’s Fund Value shall be refunded to the Policyholder.

Once a policy is surrendered it cannot be reinstated.

8. COMMENCEMENT OF RISK UNDER THE POLICY:
“Date of Commencement of Risk” is the date from which life assurance cover shall be available under the policy.

If the age of the Life to be Assured is 12 years or more, both the date of Commencement of risk and date of Commencement of Policy shall be the date of completion of proposal.

If the age of the Life to be Assured is less than 12 years, the date of Commencement of Policy will be the date of completion of the proposal. The date of commencement of Risk shall be as per the following rules –

Risk will commence either after 2 years from the date of commencement of policy or from the policy anniversary coinciding with or immediately following the completion of 7 years of age, whichever is later in case the age at entry of the life assured is less than or equal to 10 years. Where the age at entry is more than 10 years but less than 12 years, the risk shall commence from the policy anniversary coinciding with or next following 12th birthday of the Life Assured. In case of minors aged 12 years or more risk will commence immediately.

9. ELIGIBILITY CONDITIONS AND FEATURES:
For Basic Plan
a) Minimum Sum Assured: 5 times the annualized premium
b) Maximum Sum Assured:
30 times of the annualized premium if age at entry is upto 45 years nearest birthday
20 times of the annualized premium if age at entry is 46 to 60 years nearest birthday
10 times of the annualized premium if age at entry is 61 years nearest birthday and above
c) Minimum Premium: Rs. 5,000 p.a. (other than monthly (ECS) mode)
Rs. 1,000 p.m. for monthly (ECS) mode, increasing
thereafter in multiples of Rs. 250.
d) Maximum Premium: No Limit
e) Minimum Entry Age: 0 years last birthday
f) Maximum Entry Age: 65 years nearest birthday
g) Policy Term: 5 to 30 years
h) Minimum Maturity Age: 18 years completed
i) Maximum Maturity Age: 75 years nearest birthday

Sum Assured shall be available in multiples of Rs. 5,000 and Annualized premiums shall be payable in multiples of Rs. 1,000. Where the minimum Sum Assured is not in the multiples of Rs. 5,000, it will be rounded off to the next multiple of Rs. 5,000.

For Accident Benefit
a) Minimum Sum Assured: Rs. 25,000
b) Maximum Sum Assured: Rs. 50,00,000 taking all existing policies of the Life Assured under individual as well as group schemes taken with Life Insurance Corporation of India and other insurance companies and the Accident Benefit Rider Sum Assured under the new proposal into consideration.
Under no circumstances Accident Benefit Sum Assured shall exceed the Sum Assured under the basic Plan.
c) Minimum / Maximum Premium: No separate Limit
d) Minimum Entry Age: 18 years completed
e) Maximum Entry Age: 65 years nearest birthday
f) Policy Term: 5 to 30 years
g) Maximum Maturity Age: 70 years nearest birthday

Sum Assured shall be available in multiples of Rs. 5,000

For Critical Illness Rider Benefit
a) Minimum Sum Assured: Rs. 50,000
b) Maximum Sum Assured: Rs. 10,00,000 taking Critical Illness riders availed under all existing policies of the Life Assured with the Corporation and the Critical Illness Rider Sum Assured under the new proposal under consideration.
Under no circumstances Critical Illness Rider Sum Assured shall exceed the Sum Assured under the basic Plan.
c) Minimum /Maximum Premium: No separate Limit
d) Minimum Entry Age: 18 years completed
e) Maximum Entry Age: 50 years nearest birthday
f) Policy Term: 10 to 30 years
g) Maximum Maturity Age: 60 years nearest birthday

Sum Assured shall be available in multiples of Rs. 10,000

10. ADDITIONAL FEATURES:
a) Switching: The policyholder can switch between any fund types during the policy term. On switching the entire amount is switched to the Fund opted for. Within a given policy year, 4 switches will be allowed free of charge. Subsequent switches shall be subject to a switching charge of Rs.100 per switch.

On receipt of the policyholder’s valid application for a switch from one fund type to another, the Policyholder’s Fund Value after deducting switching charges, if any, shall be transferred to the New Fund opted by the policyholder and shall be utilized to allocate Fund Units at the NAV under the New Fund type on the said date of switch. If a valid application is received up to 3 p.m. by the servicing branch the closing NAV of the same day shall be applicable and in respect of the applications received after 3 p.m. by the servicing branch the closing NAV of the next business day shall be applicable

Switching shall not be allowed under a lapsed policy.

b) Top-up: No Top-up shall be allowed under the plan.

c) Increase / Decrease in Benefits: No increase of benefits will be allowed under the plan. The Policyholder can, however, decrease the risk covers once in a year during the Policy term, provided all due premiums under the Policy have been paid. The reduced levels of cover will be available within the limits specified in para 9. When the life cover is decreased then Accident Benefit and Critical Illness rider sum assured shall also be reduced to the extent of reduced cover under the main plan. Further, once reduction in risk cover is allowed, the same cannot be subsequently increased/ restored.

d) Partial withdrawals: A Policyholder can partially withdraw the units at any time after the third policy anniversary subject to the following:

i. In case of minors, partial withdrawals shall be allowed from the policy anniversary coinciding with or next following the date on which the life assured attains majority (i.e. on or after 18th birthday).
ii. Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units.
iii. For 2 years’ period from the date of withdrawal, the Sum Assured under the Basic plan shall be reduced to the extent of the amount of partial withdrawals made.
iv. Under policies where less than 3 years’ premiums have been paid and further premiums are not paid, the partial withdrawals shall not be allowed.
v. Under policies where atleast 3 years’ premiums have been paid, partial withdrawal will be allowed subject to a minimum balance of two annualized premiums in the Policyholder’s Fund Value.

e) Option to continue the cover after the revival period: If atleast three years’ premiums have been paid under the policy, the policyholder may opt for continuation of cover even beyond the revival period without reviving the policy and paying any further premiums. This option shall be required to be exercised atleast one month before the completion of the revival period. If this option is availed, the cover under the policy shall continue by deduction of relevant charges out of policy fund. This option shall continue till the Policyholder’s Fund Value reaches one annualized premium. No further premiums shall be allowed to be paid after the revival period is over.

All the benefits under such a policy shall be as available during the revival period as mentioned under para 6(i), (Discontinuance of premium where three years premiums are paid).

11. MODES OF PREMIUM PAYMENT:
Regular premium can be paid either in yearly, half yearly, quarterly or monthly (ECS) installments. The minimum Annualised Premium (other than monthly through ECS) will be Rs. 5,000/- increasing thereafter in multiples of Rs. 1,000/-. In case of monthly (ECS) the minimum premium will be Rs. 1,000 p.m. increasing thereafter in multiples of Rs. 250/-.

There will be no mode specific charges/ rebates.

12. COMMISSION PAYABLE TO AGENTS/ CORPORATE AGENTS/ BROKERS & DEVELOPMENT OFFICER’S CREDIT:

Commission to Agents & Corporate Agents:
• Year Commission
First 10%
2nd & 3rd 4%
Thereafter 2%
• There will be 40% bonus commission on the first year commission under the policies.

Commission to Brokers:
• Year Commission
First 16%
2nd & 3rd 4%
Thereafter 2%
• No bonus commission shall be payable to brokers.

Development Officer’s credit:
• 30% of FY premium.
13. CEIS REBATE:
No rebate on premium is allowed to Corporation Employees.

However, for direct business in respect of Corporation Employees, the allocation charge will be as under:

Premium Band (per annum) Allocation charge
First year 2nd & 3rd year thereafter
5,000 to 75,000 4.50% Nil Nil
75,001 to 1,50,000 3.75% Nil Nil
1,50,001 to 3,00,000 2.50% Nil Nil
3,00,001 and above 1.75% Nil Nil

All other charges shall be as mentioned in para 3 (ii) to 3 (v).

14. LOANS:
No loan shall be granted under this plan.

15. UNDERWRITING:
Instructions will be issued separately by Underwriting and Reinsurance Department.

16. DAYS OF GRACE:
A grace period of one calendar month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly (through ECS) premiums. If the death of Life Assured occurs within the grace period but before the payment of premium then due, the policy will be treated as in-force and the death benefits shall be paid after deduction of all the relevant charges, if not recovered.
If premiums are not paid within the days of grace, the policy lapses.
17. REVIVALS:
A lapsed policy can be revived during the period of two years from the due date of first unpaid premium or before maturity, whichever is earlier. The period during which the policy can be revived will be called “Period of revival” or “revival period”.

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

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

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

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

18. COOLING-OFF PERIOD:
If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy. The amount to be refunded in case the policy is returned within the cooling-off period shall be determined as under:





Value of units in the Policyholder’s Fund
Plus unallocated premium.
Plus Policy Administration charge deducted
Less charges @ Rs.0.20%o Sum Assured under the Basic Plan
Less Actual cost of medical examination and special reports, if any.

In case the policy is returned during the cooling-off period, Commission shall be recovered from the concerned Agent and the Development Officer’s credit allowed shall be withdrawn.

19. BACK DATING:
Back dating of policy will not be allowed.

20. POLICY STAMPING:
Policy Stamping will be at the rate of Rs.0.20 per thousand Sum Assured under the Basic Plan.

21. ASSIGNMENTS / NOMINATION:
Notice of Assignment or Nomination should be submitted for registration to the office of the Corporation, where this policy is serviced. In registering an assignment or nomination the Corporation does not accept any responsibility or express any opinion as to its validity or legal effect.

22. NORMAL REQUIREMENTS FOR CLAIM:
The normal documents which the claimant/s shall submit while lodging a claim in case of death of the policyholder shall be the claim forms as prescribed by the Corporation accompanied with the original policy document; proof of title; proof of death; proof of accident, if any; medical treatment prior to death; employer’s certificate, whichever is applicable together with the proof of age, if not already admitted under the policy.

On maturity or on earlier Surrender, the Life Assured shall submit the discharge form along with the original policy document besides the proof of age, if not admitted earlier.

In case the age is found to be higher from that on which premium has been charged under the policy, then the difference in the charges for the correct age shall be deducted with interest at such rate as determined by the Corporation from time to time.

23. REINSURANCE:
For reinsurance purposes, the retention limits will be those applicable to Term Assurance Plans for the Sum at Risk (i.e. Sum Assured under Basic plan minus Fund value). Initially for a new policy the Sum at Risk (SAR) at Date of Commencement of Risk shall be the Sum Assured under the policy. From first anniversary onwards, the SAR shall be Sum Assured less Policyholder’s Fund Value.