Lic Report

PROJECT REPORT

ON

LIFE INSURANCE CORPORATION OF INDIA

SUBMITTED IN PARTIAL FULFILLMENT FOR

THE AWARD OF THE DGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

2008-2011

UNDER THE GUIDANCE OF Mrs. MONA KAWATRA

FACULTY, MAIMS

SUBMITTED BY: ASHISH DABAS

BATCH NO.: BBA (B&I) 2ndSEMESTER

ROLL NO.: 8242

MAHARAJA AGRASEN INSTITUTE OF

MANAGEMENT STUDIES

Affiliated to Guru Gobind Singh Indraprasth University, Delhi

PSP Area, Plot No. 1, Sector 22, Rohini Delhi 110086.

INDEX

Table of Contents

Student Declaration i

Certificate from Guide ii

Acknowledgement iii

Executive Summary iv

CHAPTER-1 1

Introduction

CHAPTER -2 4

Company Profile

CHAPTER -3 21

Research Methodology

CHAPTER-4 25

Policies and Plans

CHAPTER -5 53

Findings

CHAPTER -6 55

Conclusion

BIBLIOGRAPHY 57

STUDENT DECLARATION

This is to certify that the project titled ‘LIFE INSURANCE CORPORATION OF

INDIA’ under the guidance of ‘Mrs. MONA KAWATRA’ has been completed and

submitted in partial fulfillment of the requirement for the award of degree of

Bachelor of Business Administration at Maharaja Agrasen Institute of Management

Studies, Delhi . This is an original piece of work & I have not submitted it earlier

elsewhere.

ASHISH DABAS

GUIDE CERTIFICATE

This is to certify that the project titled “LIFE INSURANCE CORPORATION OF

INDIA” is an academic work done by “ASHSISH DABAS” submitted in the partial

fulfillment of the requirement for the award of the degree of Bachelor Of Business

Administration from Maharaja Agrasen Institute of Management Studies, Delhi,

under my guidance & direction. To the best of my knowledge and belief the data &

information presented by him/her in the project has not been submitted earlier.

MONA KAWATRA

ACKNOWLEDGEMENT

I am highly obliged to Mrs. MONA KAWATRA (project guide) for her constant

and excellent guidance and also her valuable support without whom this project

report could not be successfully completed. I am also thankful to my friends, my

parents, brother-sister for helping me in the completion of this project report.

EXECUTIVE SUMMARY

Insurance is the most familiar word or phrase used in today’s life. Insurance

companies are those institutes that provide various types of facility and services in

term of there plans and policies to the consumers. The following project has been

made on one of the largest company in insurance sector in India which is owned by

government which is “LIFE INSURANCE CORPORATION OF INDIA”. The

following project makes an analysis of the products of LIC. The brief summary of

each chapter is discussed as follows:-

CHAPTER-1

It consist of information of the industrial profile of the life insurance sector i.e. when

and how does this sector emerges and how it contributes to the economy,

CHAPTER-2

Chapter 2 includes company profile of LIC i.e. how and when it is formed, which

were the companies that merges and form LIC, its milestones, its objectives, mission

and vision, what is life insurance, board of directors, a brief on the subsidiaries. It

also includes awards and achievements by LIC.

CHAPTER-3

Purpose of the study for which it is conducted, objective while conducting the study

and methodology which consist of the medians used and the tools used to complete

the study.

CHAPTER-4

It includes some of the products offered by LIC, net asset value of the products, tax

benefits to its policy holders categorized according to their age. It also shows the

relationship of LIC with information technology.

CHAPTER-5

This chapter includes the findings and analysis retrieved after the study of the of the

project.

CHAPTER-6

Chapter 6 consists of the conclusion arrived after analyzing and findings from the

study.

CHAPTER-1

INRODUCTION

INSURANCE COMPANIES IN INDIA

In India, Insurance is a national matter, in which life and general insurance is yet a

booming sector with huge possibilities for different global companies, as life

insurance premiums account to 2.5% and general insurance premiums account to

0.65% of India's GDP. The Indian Insurance sector has gone through several phases

and changes, especially after 1999, when the Govt. of India opened up the insurance

sector for private companies to solicit insurance by passing Insurance Regulatory and

Development Authority (IRDA) Bill, allowing FDI up to 26%. Since then, the

Insurance sector in India is considered as a flourishing market amongst global

insurance companies. However, the largest life insurance company in India is still

owned by the government.

The history of Insurance in India dates back to 1818, when Oriental Life Insurance

Company was established by Europeans in Kolkata to cater to their requirements.

Nevertheless, there was discrimination among the life of foreigners and Indians, as

higher premiums were charged from the latter. In 1870, Indians took a sigh of relief

when Bombay Mutual Life Assurance Society, the first Indian insurance company

covered Indian lives at normal rates. Onset of the 20th century brought a drastic

change in the Insurance sector.

In 1912, the Govt. of India passed two acts - the Life Insurance Companies Act, and

the Provident Fund Act - to regulate the insurance business. National Insurance

Company Ltd, founded in 1906, is the oldest existing insurance company in India.

Earlier, the Insurance sector had only two state insurers - Life Insurers i.e. Life

Insurance Corporation of India (LIC), and General Insurers i.e. General Insurance

Corporation of India (GIC). In December 2000, these subsidiaries were de-linked

from parent company and were declared independent insurance companies: Oriental

Insurance Company Limited, New India Assurance Company Limited, National

Insurance Company Limited and United India Insurance Company Limited.

With an annual growth rate of 15-20% and the largest number of life insurance

policies in force, the potential of the Indian insurance industry is huge. Total value of

the Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion).

The life insurance industry in India grew by an impressive 36%, with premium

income from new business at Rs. 253.43 billion during the fiscal year 2004-2005,

braving stiff competition from private insurers. This report, "Indian Insurance

Industry: New Avenues for Growth 2012", finds that the market share of the state

behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86 billion by

selling 2.4 billion new policies in 2004-05. But this was still not enough to arrest the

fall in its market share, as private players grew by 129% to mop up Rs. 55.57 billion

in 2004-05 from Rs. 24.29 billion in 2003-04.

Though the total volume of LIC's business increased in the fiscal year (2004-2005)

compared to the previous one, its market share came down from 87.04 to 78.07%.

The 14 private insurers increased their market share from about 13% to about 22% in

a year's time. The figures for the first two months of the fiscal year 2005-06 also

speak of the growing share of the private insurers. The share of LIC for this period

has further come down to 75 percent, while the private players have grabbed over 24

percent.

There are presently 12 general insurance companies with four public sector

companies and eight private insurers and private insurance companies collectively

have a 10% share of the non-life insurance market.

CHAPTER-2

COMPANY PROFILE

COMPANY PROFILE

The story of insurance is probably as old as the story of mankind. The same instinct

that prompts modern businessmen today to secure themselves against loss and

disaster existed in primitive men also. They too sought to avert the evil consequences

of fire and flood and loss of life and were willing to make some sort of sacrifice in

order to achieve security. Though the concept of insurance is largely a development

of the recent past, particularly after the industrial era – past few centuries – yet its

beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818.

Oriental Life Insurance Company started by Europeans in Calcutta was the first life

insurance company on Indian Soil. All the insurance companies established during

that period were brought up with the purpose of looking after the needs of European

community and Indian natives were not being insured by these companies. However,

later with the efforts of eminent people like Babu Muttylal Seal, the foreign life

insurance companies started insuring Indian lives. But Indian lives were being treated

as sub-standard lives and heavy extra premiums were being charged on them.

Bombay Mutual Life Assurance Society heralded the birth of first Indian life

insurance company in the year 1870, and covered Indian lives at normal rates.

Starting as Indian enterprise with highly patriotic motives, insurance companies came

into existence to carry the message of insurance and social security through insurance

to various sectors of society. Bharat Insurance Company (1896) was also one of such

companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise

to more insurance companies. The United India in Madras, National Indian and

National Insurance in Calcutta and the Co-operative Assurance at Lahore were

established in 1906. In 1907, Hindustan Co-operative Insurance Company took its

birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath

Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life

(later Bombay Life) were some of the companies established during the same period.

Prior to 1912 India had no legislation to regulate insurance business. In the year 1912,

the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life

Insurance Companies Act, 1912 made it necessary that the premium rate tables and

periodical valuations of companies should be certified by an actuary. But the Act

discriminated between foreign and Indian companies on many accounts, putting the

Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance

business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to

176 companies with total business-in-force as Rs.298 crore in 1938. During the

mushrooming of insurance companies many financially unsound concerns were also

floated which failed miserably. The Insurance Act 1938 was the first legislation

governing not only life insurance but also non-life insurance to provide strict state

control over insurance business. The demand for nationalization of life insurance

industry was made repeatedly in the past but it gathered momentum in 1944 when a

bill to amend the Life Insurance Act 1938 was introduced in the Legislative

Assembly. However, it was much later on the 19th of January, 1956, that life

insurance in India was nationalized. About 154 Indian insurance companies, 16 non-

Indian companies and 75 provident were operating in India at the time of

nationalization. Nationalization was accomplished in two stages; initially the

management of the companies was taken over by means of an Ordinance, and later,

the ownership too by means of a comprehensive bill. The Parliament of India passed

the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance

Corporation of India was created on 1st September, 1956, with the objective of

spreading life insurance much more widely and in particular to the rural areas with a

view to reach all insurable persons in the country, providing them adequate financial

cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its

corporate office in the year 1956. Since life insurance contracts are long term

contracts and during the currency of the policy it requires a variety of services need

was felt in the later years to expand the operations and place a branch office at each

district headquarter. Re-organization of LIC took place and large numbers of new

branch offices were opened. As a result of re-organization servicing functions were

transferred to the branches, and branches were made accounting units. It worked

wonders with the performance of the corporation. It may be seen that from about

200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only

in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark

of new business. But with re-organization happening in the early eighties, by 1985-86

LIC had already crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100 divisional

offices, 7 zonal offices and the corporate office. LIC’s Wide Area Network covers

100 divisional offices and connects all the branches through a Metro Area Network.

LIC has tied up with some Banks and Service providers to offer on-line premium

collection facility in selected cities. LIC’s ECS and ATM premium payment facility

is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info

Centers have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai,

Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of

providing easy access to its policyholders, LIC has launched its SATELLITE

SAMPARK offices. The satellite offices are smaller, leaner and closer to the

customer. The digitalized records of the satellite offices will facilitate anywhere

servicing and many other conveniences in the future.

LIC continues to be the dominant life insurer even in the liberalized scenario of

Indian insurance and is moving fast on a new growth trajectory surpassing its own

past records. LIC has issued over one crore policies during the current year. It has

crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting

a healthy growth rate of 16.67% over the corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has set unprecedented

performance records in various aspects of life insurance business. The same motives

which inspired our forefathers to bring insurance into existence in this country inspire

us at LIC to take this message of protection to light the lamps of security in as many

homes as possible and to help the people in providing security to their families.

Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian

soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance

company started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to

regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to

collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz. LIC

Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the

Triton Insurance Company Ltd., the first general insurance company established in

the year 1850 in Calcutta by the British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all

classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency

margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the

general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies’ viz. the National

Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental

Insurance Company Ltd. and the United India Insurance Company Ltd. GIC

incorporated as a company.

LIC SUBSIDIARIES

Unlike provisions for private players in the insurance sector, the LIC Act provides for

setting up subsidiaries through policy holders fund. It is due to the LIC act that LIC of

India has a number of subsidiaries which help it in leveraging its potential to the

maximum, providing an enhanced set of diversified services to its customers. These

subsidiaries include LIC International, LIC Nepal, LIC Lanka, LIC Housing Finance

and LIC Mutual Fund.

LIC INERNATIONAL

This is a joint venture offshore company promoted by LIC which commenced

operations in July, 1989 with the objectives of offering US$ denominated policies to

cater to the insurance needs of NRIs and providing insurance services to holders of

LIC policies currently residing in the Gulf. LIC International operates in all GCC

countries.

LIC NEPAL

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

LIC LANKA

A joint venture company formed in 2003 with the Bartleet Group of Companies, Sri

Lanka.

LIC HOUSING FINANCE LTD.

The Company is recognized by National Housing Bank and listed on the National

Stock Exchange (NSE) & Bombay Stock Exchange Limited (BSE). LIC Housing

Finance Ltd. is one of the largest Housing Finance Company in India. Incorporated

on 19th June 1989 under the Companies Act, 1956, the company was promoted by

LIC of India and went public in the year 1994. Its main objective is to provide long

term finance for construction or purchase of houses or apartments. It has a Dubai

office.

LIC MUTUL FUND LTD.

Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989 and

contributed Rs. 2 Crores towards the corpus of the Fund. LIC Mutual Fund was

constituted as a Trust in accordance with the provisions of the Indian Trust Act, 1882.

There are some other subsidiaries of LIC which are

1. LIC Mutual Fund Asset Management Company Ltd.

2. LIC HFL Care Homes Ltd.

3. LICHFL Asset Management Company Private Limited.

4. LICHFL Trustee Company Private Limited.

5. LICHFL Financial Services Limited, etc.

WHAT IS LIFE INSURANCE?

Life insurance is a contract that pledges payment of an amount to the person assured

(or his nominee) on the happening of the event insured against.

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

The date of maturity, or

Specified dates at periodic intervals, or

Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium

periodically to the Corporation by the policyholder. Life insurance is universally

acknowledged to be an institution, which eliminates 'risk', substituting certainty for

uncertainty and comes to the timely aid of the family in the unfortunate event of death

of the breadwinner.

By and large, life insurance is civilization’s partial solution to the problems caused by

death. Life insurance, in short, is concerned with two hazards that stand across the

life-path of every person:

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

2. That of living till old age without visible means of support.

Life Insurance Vs. Other Savings

Contract of Insurance:

A contract of insurance is a contract of utmost good faith technically known as

uberrima fides. The doctrine of disclosing all material facts is embodied in this

important principle, which applies to all forms of insurance.

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

proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud

in any document leading to the acceptance of the risk would render the insurance

contract null and void.

Protection: Savings through life insurance guarantee full protection against risk of death of the

saver. Also, in case of demise, life insurance assures payment of the entire amount

assured (with bonuses wherever applicable) whereas in other savings schemes, only

the amount saved (with interest) is payable.

Aid to Thrift: Life insurance encourages 'thrift'. It allows long-term savings since payments can be

made effortlessly because of the 'easy installment' facility built into the scheme.

(Premium payment for insurance is either monthly, quarterly, half yearly or yearly).

For example: The Salary Saving Scheme popularly known as SSS provides a

convenient method of paying premium each month by deduction from one's salary. In

this case the employer directly pays the deducted premium to LIC. The Salary Saving

Scheme is ideal for any institution or establishment subject to specified terms and

conditions.

Liquidity: In case of insurance, it is easy to acquire loans on the sole security of any policy that

has acquired loan value. Besides, a life insurance policy is also generally accepted as

security, even for a commercial loan.

Tax Relief: Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax.

This is available for amounts paid by way of premium for life insurance subject to

income tax rates in force.

Assesses can also avail of provisions in the law for tax relief. In such cases the

assured in effect pays a lower premium for insurance than otherwise.

Money When You Need It: A policy that has a suitable insurance plan or a combination of different plans can be

effectively used to meet certain monetary needs that may arise from time-to-time.

Children's education, start-in-life or marriage provision or even periodical needs for

cash over a stretch of time can be less stressful with the help of these policies.

Alternatively, policy money can be made available at the time of one's retirement

from service and used for any specific purpose, such as, purchase of a house or for

other investments. Also, loans are granted to policyholders for house building or for

purchase of flats (subject to certain conditions).

Who Can Buy A Policy? Any person who has attained majority and is eligible to enter into a valid contract can

insure himself/herself and those in whom he/she has insurable interest.

Policies can also be taken, subject to certain conditions, on the life of one's spouse or

children. While underwriting proposals, certain factors such as the policyholder’s

state of health, the proponent's income and other relevant factors are considered by

the Corporation.

Insurance For Women

Prior to nationalization (1956), many private insurance companies would offer

insurance to female lives with some extra premium or on restrictive conditions.

However, after nationalization of life insurance, the terms under which life insurance

is granted to female lives have been reviewed from time-to-time.

At present, women who work and earn an income are treated at par with men. In other

cases, a restrictive clause is imposed, only if the age of the female is up to 30 years

and if she does not have an income attracting Income Tax.

Medical And Non-Medical Schemes

Life insurance is normally offered after a medical examination of the life to be

assured. However, to facilitate greater spread of insurance and also to avoid

inconvenience, LIC has been extending insurance cover without any medical

examination, subject to certain conditions.

With Profit And Without Profit Plans

An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed,

if any, after periodical valuations are allotted to the policy and are payable along with

the contracted amount.

In 'without' profit plan the contracted amount is paid without any addition. The

premium rate charged for a 'with' profit policy is therefore higher than for a 'without'

profit policy.

Keyman Insurance

Keyman insurance is taken by a business firm on the life of key employee(s) to

protect the firm against financial losses, which may occur due to the premature

demise of the Keyman.

OBJECTIVES OF LIC

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

socially and economically backward classes with a view to reaching all insurable

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

reasonable cost.

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

savings adequately attractive.

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

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

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

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

obligations of attractive return.

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

moneys belong to the policyholders.

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

capacities.

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

changing social and economic environment.

Involve all people working in the Corporation to the best of their capability in

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

courtesy.

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

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

dedication towards achievement of Corporate Objective.

MISSION/VISSION

MISSION

"Explore and enhance the quality of life of people through financial security by

providing products and services of aspired attributes with competitive returns, and by

rendering resources for economic development."

VISSION

"A trans-nationally competitive financial conglomerate of significance to societies

and Pride of India."

BOARD OF DIRECTORS

Members on the Board of the Corporation

1. Chairman: Shri. T.S. Vijayan

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

3. Managing Director: Shri. Thomas Mathew T.

4. Managing Director: Shri. A.K. Dasgupta

5. Finance Secretary: Shri. Ashok Chawla (Ministry of Finance, Govt. of India)

6. Additional Secretary: Shri. G.C. Chaturvedi (Department of Financial

Services, Ministry of Finance, Govt. of India.)

7. Chairman cum Managing Director: Shri. Yogesh Lohiya (GIC of India)

8. Chairman & Managing Director: Shri. T.C. Venkat Subramanian (Export

Import Bank of India)

9. Dr. Sooranad Rajashekhran

10. Shri. Monis R. Kidwai

AWARDS AND ACHIVEMENTS

Brand Equity Most Trusted Brand

2009 Top in Insurance Category

Golden Peacock Innovative Product /

Service Award – 2009

Loyalty Awards - 2009 Readers Digest Trusted Brand

Award 2009 in the Platinum category

CNBC Awaaz Consumer Awards 2008NDTV Profit Business Leadership

Award 2008

INDY's Silver Award for Best

Corporate Film

INDY's Silver Award for Best in

House Magazine

IT USER 2008 NASCOM Selected Business Super brand India

2008

ASIA BRAND CONGRESS BRAND

LEADERSHIP AWARD 2008

Pitch Award -" Rank 1 " India's Top

50 service Brands

Loyalty Awards 2008 - Insurance

Sector

SKOCH Challengers Award 2008 for

Jeevan Madhur

Readers Digest Trusted Brand Award

2008 in the Platinum category.

Golden Peacock Award for

Excellence in Corporate Governance

Web 18 Genius of the web awards 2007

CHAPTER-3

RESEARCH METHODOLOGY

PURPOSE OF THE STUDY

The purpose behind the study of LIFE INSURANCE CORPORATION OF INDIA is

to understand the companies’ background as well as the nature of the various

products offered over many years in India. Purpose is to study the products and their

benefits to customers. This gives a brief idea of the nature of products of the

company.

OBJECTIVES OF THE STUDY

The objectives behind the study of the plans and policies of LIFE INSURANCE

CORPORATION OF INDIA are:

1. To impart knowledge about the history and objectives of the company and also its

different subsidiaries.

2. To aware the readers about the different plans and policies provided by LIC, there

value and benefits to its customers.

METHODOLOGY

DATA COLLECTION:

All the information provided on LIFE INSURANCE CORPORATION OF INDIA in

the project report has been collected through secondary resources. No survey has

been conducted to collect information for the study. Therefore only secondary data is

used in the study.

STATICAL TOOLS:

Secondary resources used in the study for information collection is internet and

magazines. Magazines & websites have been used and the information retrieved from

these sources is then gathered in this project. Other tools used in the study which are

used in the preparation of the project after collecting information are:

1. MS Word

2. MS Excel

CHAPTER-4

POLICIES

POLICIES (SCHEMES)

Life Insurance Corporation of India provides number of products to its costumers.

LIC differentiated their policies into five different types which are:

1. Insurance Plans

2. Pension Plans

3. Unit Plans

4. Special Plans

5. Group Scheme

INSURANCE PLANS

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

requirements are different from that of the others. LICs Insurance Plans are

policies that talk to you individually and give you the most suitable options that

can fit your requirement.

Jeevan Anurag Komal Jeevan

CDA Endowment Vesting At 21 Marriage Endowment Or

Educational Annuity Plan CDA Endowment Vesting At 18

Jeevan Kishore Jeevan Chhaya

Child Career Plan Child Future Plan

Child Fortune Plus

Jeevan Aadhar

Jeevan Vishwas

The Endowment Assurance Policy

The Endowment Assurance Policy-Limited Payment

Jeevan Mitra(Double Cover Endowment Plan)

Jeevan Mitra(Triple Cover Endowment Plan)

Jeevan Anand

New Janaraksha Plan

Jeevan Amrit

Jeevan Shree-I

Jeevan Pramukh

The Money Back Policy-20 Years

The Money Back Policy-25 Years

Jeevan Surabhi-15 Years



Bima Bachat

Jeevan Bharati - I

The Whole Life Policy

The Whole Life Policy- Limited Payment

The Whole Life Policy- Single Premium

Jeevan Anand

Jeevan Tarang

Two Year Temporary Assurance Policy

The Convertible Term Assurance Policy

Anmol Jeevan-I

Amulya Jeevan-I

Jeevan Saathi Plus

Jeevan Saathi

Mortgage Redemption

PENSION PLANS

Pension Plans are Individual Plans that gaze into your future and foresee

financial stability during your old age. These policies are most suited for senior

citizens and those planning a secure future, so that you never give up on the

best things in life.

Jeevan Nidhi

Jeevan Akshay-VI

New Jeevan Dhara-I

New Jeevan Suraksha-I

UNIT PLANS

Unit plans are investment plans for those who realize the worth of hard-earned

money. These plans help you see your savings yield rich benefits and help you

save tax even if you don't have consistent income.

Market Plus I

Profit Plus

Fortune Plus

Money Plus-I

Child Fortune Plus

SPCIAL PLANS

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

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

a lifetime of happiness!

New Bima Gold

Health Protection Plus

Health Plus

Bima Nivesh 2005

Jeevan Saral

Jeevan Madhur

GROUP SCHEME

Group Insurance Scheme is life insurance protection to groups of people. This

scheme is ideal for employers, associations, societies etc. and allows you to

Jeevan Mangal

enjoy group benefits at really low costs.

Group LIC's Superannuation Plus

Group Term Insurance Schemes

Group Insurance Scheme in Lieu Of EDLI

Group Gratuity Scheme

Group Super Annuation Scheme

Group Savings Linked Insurance Scheme

Group Leave Encashment Scheme

Group Mortgage Redemption Assurance Scheme

Gratuity Plus

Group Critical Illness Rider

JanaShree Bima Yojana (JBY)

Shiksha Sahayog Yojana

Aam Admi Bima Yojana

PRODUCTS BY LIC

INSURANCE PLANS

1. Jeevan Anand

Features

Product summary:

This plan is a combination of Endowment Assurance and Whole Life plans. It

provides financial protection against death throughout the lifetime of the life assured

with the provision of payment of a lump sum at the end of the selected term in case of

his survival.

Premium:

Premiums are payable yearly, half-yearly, quarterly, monthly or through salary

deductions as opted by you throughout the selected term of the policy or till earlier

death.

Bonuses:

This is a with-profit plan and participates in the profits of the Corporation’s life

insurance business. It gets a share of the profits in the form of bonuses. Simple

Reversionary Bonuses are declared per thousand Sum Assured annually at the end of

each financial year. Once declared, they form part of the guaranteed benefits of the

plan. Bonuses will be added during the selected term or till death, if it occurs earlier.

Final (Additional) Bonus may also be payable provided the policy has run for certain

minimum period

Benefits

Benefits in case of death during the selected term:

The Sum Assured along with the vested bonuses is payable on death in a lump sum.

Benefits in case of survival to the end of selected term:

The Sum Assured along with the vested bonuses is payable in a lump sum on survival

to the end of the term. An additional Sum Assured is payable on death thereafter.

Accident Benefit:

An additional Sum Assured (subject to a limit of Rs.5 lakh) is payable in a lump sum

on death due to accident up to age 70 of life assured. In case of permanent disability

of the life assured due to accident this additional Sum assured is payable in

installments.

Supplementary/Extra Benefits:

These are the optional benefits that can be added to your basic plan for extra

protection/option. An additional premium is required to be paid for these benefits.

Surrender Value:

Buying a life insurance contract is a long-term commitment. However, surrender

values are available on the plan on earlier termination of the contract.

Guaranteed Surrender Value:

The policy may be surrendered after it has been in force for 3 years or more. The

guaranteed surrender value is 30% of the basic premiums paid excluding the first

year’s premium. Any extra premium(s) paid and premium(s) towards Accident

Benefit are also excluded.

Corporation’s policy on surrenders:

In practice, the Corporation will pay a Special Surrender Value – which is either

equal to or more than the Guaranteed Surrender Value. The benefit payable on

surrender reflects the discounted value of the reduced claim amount that would be

payable on death or at maturity. This value will depend on the duration for which

premiums have been paid and the policy duration at the date of surrender. In some

circumstances, in case of early termination of the policy, the surrender value payable

may be less than the total premium paid.

2. Jeevan Shree-I

Product summary:

This is an Endowment Assurance plan offering the choice of many convenient

premiums paying terms. It provides financial protection against death throughout the

term of plan with the payment of maturity amount on survival to the end of the policy

term.

Premiums:

Premiums are payable yearly, half-yearly, quarterly or through Salary deductions, as

opted by you, throughout the premium paying term or till earlier death. Alternatively

premium may be paid in one lump sum (Single premium).

Guaranteed Additions:

The policy provides for the Guaranteed Additions at the rate of Rs. 50/- per thousand

Sum Assured for each completed year for first five years of the policy. The

Guaranteed Additions are payable along with the Basic Sum Assured at the time of

claim.

Bonuses:

The policy participates in the profits of the Corporation’s life insurance business from

the 6th year onwards. It will get a share of the profits in the form of bonuses. Simple

Reversionary Bonuses will be declared per thousand Basic Sum Assured annually at

the end of each financial year. Once declared, they will form part of the guaranteed

benefits of the plan.

Benefits

Death Benefit:

The Sum Assured along with guaranteed additions and vested bonuses, if any, is

payable in a lump sum on death of the life assured during the policy term.

Maturity Benefit:

The Sum Assured along with guaranteed additions and reversionary bonuses, if any

is payable in a lump sum on survival to the end of the policy term.




Surrender Value:


value is available on the plan on earlier termination of the contract.


The policy may be surrendered after it has been in force for 3 years or more. The

guaranteed surrender value is 30% of the basic premiums paid excluding the first

year’s premium. In case of a single premium policy the guaranteed surrender value is

90% of the single premium paid excluding any extra premium.


In practice, the Corporation will pay a Special Surrender Value – which is either

equal to or more than the Guaranteed Surrender Value. The benefit payable on

surrender reflects the discounted value of the reduced claim amount that would be

payable on death or at maturity. This value will depend on the duration for which

premiums have been paid and the policy duration at the date of surrender. In some

circumstances, in case of early termination of the policy, the surrender value payable

may be less than the total premium paid.

3. Bima Bachat

What is Bima Bachat?

LIC’s Bima Bachat is a money-back policy which offers financial security and

assurance to the policy holder and his family. Bima Bachat requires the policy holder

to pay only one premium. The amount paid for the premium depends on the duration

of the policy taken and life insurance is available till the date of maturity.

What other benefits do I receive during the specified duration of the policy?

For a term of 9 years: The policy holder will receive 15% of the sum assured at the

end of every 3rd and 6th policy year.

For a term 12 years: The policy holder will receive 15% of the sum assured at the end

of every 3rd, 6th and 9th policy year.

For a term 15 years: The policy holder will receive15% of the sum assured at the end

of every 3rd, 6th, 9th and 12th policy year.

What additional benefits do I get upon maturity?

If the policy holder outlives the duration of the policy, at the time of maturity, a

single premium payment (excluding extra premium) is made along with loyalty

additions, if any.

How much insurance do I get?

The policy holder is insured for an amount equal to the sum assured.

What about the installment received already?

The insurance cover is irrespective of the installments received.

When am I eligible for the guaranteed surrender value?

The guaranteed surrender value is available only after completion of at least one

policy year. This value is equal to 90 % of the single premium paid (excluding extra

premium).

What other benefits does this insurance cover offer?

Bima Bachat is the only money-back policy that offers a loan facility. The rate of

interest for this will be determined from time to time by the corporation. Presently the

rate of interest is 9% p.a. payable half-yearly.

It also offers other benefits like the 15 day cooling off period, grace period and

revival.

Who is eligible for the policy? Are there other conditions or restrictions?

The following are the requirements that one needs to be aware of before applying for

this policy:

· The person applying for the policy should have completed 15 years and should not

be older than 66 years.

· The policy will mature when the person is 75 years old.

· There is a choice of three terms to choose from (9, 12 and 15 years) for the policy

depending on the age and requirement of the applicant.

· The minimum sum that needs to be assured is Rs 20,000/- and there is no limit on

the amount that can be assured.

· It is important to note that the sum assured should be in multiples of Rs 5000/- only.

· The policy requires the holder to pay a single premium.

Premium payment

Single Premium

The sample premium rates are as under: -

Age Annual Premium per 1000 SA

9 12 15

15 716.40 771.35 804.00

20 717.20 771.85 804.40

25 717.55 772.25 804.95

30 718.45 773.35 806.10

35 721.05 775.75 808.55

40 725.80 780.25 812.95

45 734.10 787.60 819.60

50 746.60 797.90 828.95

55 762.65 811.95 841.75

60 784.80 831.30 859.35

65 816.25 - -

What incentives do I get for a higher sum assured?

Let’s take an example of a 30 year old with a Bima Bachat policy for 12 years. If the

sum assured is Rs 45,000 then he has to pay a premium of Rs 34800.75. But for a

sum assured amount of Rs 50,000 he will have to pay a premium of Rs 36734.13

only, thus getting a 5% rebate in premium.

Refer to the table below for other rebate percentages:

Less than Rs. 50,000 NIL

Rs. 50,000 and Less than Rs.1

lakh5%

Rs. 1 lakh and Less than Rs.2

lakh7%

Rs. 2 lakh and above 8%

4. The Convertible Term Assurance Policy

Features

This plan of assurance is designed to meet the needs of those who are initially unable

to pay the larger premium required for a Whole Life or Endowment Assurance

Policy, but hope to be able to pay for such a policy in the near future.

This plan would be found useful also in cases where it is desired to leave the final

decision as to the plan to a later date when, perhaps a better choice could be made.

Policy holders get an option of converting an policy into endowment assurance or

limited payment whole life assurance.

Suitable For:

For all people with earned income under Category I and unearned incomes under

Category II, basically Standard and sub-Standard lives attracting EMR classes I and

II.

Benefits

Survival Benefit

Not Applicable

Death Benefit

the sum assured is payable only in the event of death of the Life Assured before the

expiry of the specified term.

Plan parameters

Minimum Maximum

Entry age 20 (nearer birthday) 50

Sum assured (Rs.) 50,000 1,00,00,000

Term (years) 5 7

Mode of PaymentMaximum premium paying

periodPolicy loan available

Yearly, Half-yearly,

Quarterly, Monthly,

Salary Saving

Scheme

55 years No

PENSION PLANS

1. New Jeevan Dhara-I

Features

Product summary:

These are Deferred Annuity plans that allow the policyholder to make provision for

regular income after the selected term.

Premiums:

Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary

deduction, as opted by you, throughout the term of the policy or till earlier death.

Alternatively, the premium may be paid in one lump sum (single premium).

Tax Benefits:

Tax relief under Section 80ccc is available on premiums paid under New Jeevan

Suraksha I (Table No.147). The premiums paid under New Jeevan Dhara I (Table

No.148) qualify for tax relief under Section 88.

Bonuses:

These are with-profit plans and participate in the profits of the Corporation’s annuity /

pension business. Policies get a share of the profits in the form of bonuses. Simple

Reversionary Bonuses are declared per thousand Sum Assured annually at the end of

each financial year. Once declared, they form part of the guaranteed benefits of the

plan. Final (Additional) Bonuses may also be payable provided policy has run for a

certain minimum period.

Benefits

Death Benefit:

On death of the Life Assured during the term of the policy the basic premiums paid,

excluding any rider premiums or extra premiums, up to the date of death accumulated

with interest at such rates as decided by the Corporation will be payable to the

nominee. Currently, the interest rate is 3%, 4% or 5 % if the death occurs within the

first 10 years, 20 years or thereafter respectively.

Maturity Benefit:

At maturity the policyholder can encash up to a maximum 25% of the maturity

proceeds as a tax-free lump sum. The balance should be compulsorily converted to an

annuity at the rates applicable at the time of maturity of the policy. The policyholder

has the choice of opting for any one of 5 annuity options. The annuity options

available are:

(i) annuity payable for remainder of life

(ii) annuity payable for life with guaranteed period of 5, 10, 15 or 20 years

(iii) Joint life and last survivor annuity to the annuitant and his/ her spouse under

which annuity payable to the spouse on death of the purchaser will be 50% of that

payable to the annuitant

(iv) Life annuity with a return of purchase price on death of the annuitant

(v) Life annuity increasing at a simple rate of 3% per annum




Surrender Value:


value is available on the plan on earlier termination of the contract.


The policy may be surrendered after it has been in force for 2 years or more but

before the vesting date. The guaranteed surrender value is 90% of the basic

premiums paid excluding the first year’s premium. In case of a single premium

policy the guaranteed surrender value is allowed after 2 years from the date of

commencement of the policy.


In practice, the company will pay a Special Surrender Value – which is equal to or

higher than the Guaranteed Surrender Value. The benefit payable on surrender

reflects the discounted value of the reduced claim amount that would be payable on

death or at maturity. This value will depend on the duration for which premiums have

been paid and the policy duration at the date of surrender. In some circumstances, in

case of early termination of the policy, the surrender value payable may be less than

the total premium paid.

UNIT PLANS-I

1. Market plus-I

This is a unit linked pension plan wherein the pension is payable after a specified

period. Four types of investment Funds namely Bond, Secured, Balanced and

Growth Fund are offered. Though primarily a Pension product, the plan has many

attractive features and options which make it an ideal Retirement solution for the

future.

BENEFITS

A) - On Vesting:

On vesting of the policy, the Fund Value will be utilized to provide a pension based

on the then prevailing Annuity rates. An option to commute up to one third of the

payable benefit in a lump sum is available.

B) On Death:

In event of the unfortunate death of the policy holder the Fund Value along with the

Riders, if any, will be payable in a lump sum or as a pension.

OPTIONS

Three attractive benefits, viz. - Life Cover, Accident Benefit and Critical Illness

Benefit are available as options or riders. Life option is available within certain limits

depending on the age at entry of the life assured. The other options are available to all

proposers who have opted for Life Cover. The quantum of the risk covers can also be

reduced; subject to the minimum limits, once a year. A policy can be taken without

any of the riders also.

REVIVAL

An attractive feature of the plan is that provided the premiums have been paid for a

minimum period of three years, all the riders under the policy will continue for a

period of two years from the due date of first unpaid premium by deduction of

relevant charges from the policy fund. This period of two years is called the “Revival

Period”. Further, if premiums have been paid for a minimum period of three years,

revival can be effected merely by paying the arrears of premium, within the Revival

Period.

PAYMENT OF PREMIUMS

Premiums can be paid in a lump sum (single premium) and also by monthly (ECS),

quarterly, half-yearly and yearly modes.

CHANGE IN FUND TYPE (SWITCH)

The plan also allows a policy holder to switch from one type of fund to another up to

four times a year, free of charge.

OTHER FEAUTRES

There will be no spread between the Bid and Offer price. The Net Asset Value

(NAV) will be declared on a daily basis. Additional premium in multiples of Rs.1,000

can be paid without any limit at anytime during the term of policy.

SPECIAL PLANS

1. Bima Nivesh

Features

Bima Nivesh 2005 is a plan with compound rate of guaranteed additions and loyalty

additions. This is the revised version of our popular Bima Nivesh Plan 2004 and is

introduced to meet the overwhelming demand for a single premium plan from our

customers. It is a single premium, ideal investment plan for those who have no

regular income but good periodical income. Bima Nivesh 2005 is available for terms

5 and 10 years. The guaranteed surrender value is payable after the policy has run for

at least one year. Term Assurance Rider is also available by payment of a single

premium at the option of the proposer.

Benefits

Guaranteed Additions: Guaranteed additions at the compound rate of Rs.50 per

thousand Sum Assured per annum for the policy with term of 5 years and at the

compound rate of Rs.55 per thousand Sum Assured per annum for the policy with

term of 10 years.

Loyalty Addition: Depending upon the Corporation's experience with regard to

mortality, interest and expenses and based on term of the policy, Loyalty addition, if

any, may be declared by the corporation and paid on maturity.

Maturity Benefit: The Basic Sum Assured along with compounded Guaranteed

Additions will be payable. Loyalty addition, if any, will also be added to this benefit.

Payment on death: In case of the unfortunate death of the Life Assured during the

term of the policy, Sum Assured along with the accrued guaranteed additions will be

payable.

Surrender Value: Surrender value is payable after the policy has run at least for

one year.

Riders: Term Assurance rider is available.

Eligibility conditions and other restrictions

For the Main Plan Term Assurance Option

Min. Age at entry 13 years completed 18 years completed

Max. Age at entry 70 years 50 years

Max. Maturity Age 75 years 60 years

Policy Term 5 yrs. and 10 yrs Same as main plan

Sum Assured

Rs.25,000.

Maximum – No

limit.

Min. Sum Assured - Rs.1,00,000/-

Max. Sum Assured - An amount

up to the basic Sum Assured for

Term Assurance subject to a

maximum of Rs.25 lakh overall

Option limit, under all policies of

the life assured.

Premium Rates:

Single Premium rates for Rs.1000 Sum Assured are Rs.995 for 5 years term and Rs.

976 for 10 years term;

The Term Rider Premium depends on the age nearer birthday and the term of the

policy.

REBATES

1% of basic premium on the premium in excess of Rs.50,000.

Rs.500 plus 1.5% of basic premium on the premium in excess of Rs.1,00,000.

LOAN

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

Value.

GROUP SCHEME

1. Group Term Insurance Scheme

A) Nature of the Scheme:

Group (term) Insurance Scheme is meant to provide life insurance protection to

groups of people. Administration of the scheme is on group basis and cost is low.

Under Group (Term) Insurance Scheme, life insurance cover is allowed to all the

members of a group subject to some simple insurability conditions without insisting

upon any medical evidence. Scheme offers covers only on death and there is no

maturity value at the end of the term.

B) Premium Chargeable:

Group (Term) Insurance Scheme is at present offered under One Year Renewable

Group term assurance plan (OYRGTA). Every year on Annual Renewal date LIC

charges the premium depending upon the changes in size and age distribution of the

age group.

C) Different Schemes:

Group (term) Insurance Scheme has a number of varieties. The Scheme may provide

for a uniform cover to all members of the group or graded covers for different

categories of members, cover for all amounts of outstanding housing loans or vehicle

advances, or some other benefits (e.g., life cover to supplement pension or PF

benefits in case of death). The schemes may have add-ons like Double Accident

Benefit, Critical Illness Benefit, Disability benefit etc.

D) General Features of various Group Insurance Schemes:

1. PREMIUM:

The premium under such scheme may be wholly paid by the employer or the Nodal

Agency. However, the scheme may be contributory i.e. the members may also

contribute.

2. DOUBLE ACCIDENT BENEFIT:

Double Accident Benefit, i.e. payment of double the sum assured on death due to

accident (without permanent disability benefit), may be allowed under Group

Insurance Schemes for an extra premium.

3. ELIGIBILITY:

For Group Insurance Scheme in lieu of EDLIS the insurability condition is that

should be a member of the Provident Fund Scheme of the employer. For other GI

Schemes of employer-employee groups the insurability condition is that the member

should not be absent on ground of sickness on the entry date. For all non-employer-

employee Group Schemes the basic insurability condition is that the member should

be in good health on the date of entry.

4. ADMINISTRATION OF THE SCHEME:

At the commencement and thereafter on each Annual Renewal Date, the Group

Policyholder will have to send all the member's data (and particulars of the new

entrants from time to time) to the P & GS unit of LIC. Detailed OYRGTA premium

calculation will be made on each Annual Renewal Date.

2. Janashree Bima Yojana (JBY)

Features

The objective of the scheme is to provide life insurance protection to the rural and

urban poor persons below poverty line and marginally above the poverty line.

ELIGIBILITY:

A person who is

*Aged between 18 and 59 years.

*Below or marginally above poverty line

*A member of any of the approved vocation/occupation groups

NODAL AGENCY:

A State Government Department which is concerned with the welfare of any such

vocation/occupation group, a Welfare Fund/ Society, Village Panchayat,NGO,Self-

Help Group,etc.

MINIMUM MEMBERSHIP SIZE:

Twenty five.

FORMS FOR JANASHREE BIMA YOJANA

1. Claim form & discharge receipt under JBY (Annexure A)

2. Application for scholarship under Shiksha Sahayog Yojana (Proforma A)

3. List of students eligible for scholarship under Shiksha Sahayog Yojana (Proforma

B)

4. Certificate of utilization ( Proforma C )

Benefits

In the events of

*Death (other than by accident) of the member, an amount of Rs.30,000/- is payable.

*death/total permanent disability, due to accident, an amount of Rs.75,000/-is

payable.

*Permanent partial disability, due to accident, an amount of Rs.37,500/- is payable.

PREMIUM:

*The premium under the scheme is Rs.200/-per annum per member. *50% of the

premium i.e. Rs.100/- will be contributed by the member and/or Nodal Agency/State

Government.

*Balance 50% will be borne by the Social Security Fund.

APPROVED VOCATION & OCCUPATIONAL GROUPS:

A) The group that can be covered are like workers in -

(i) Foodstuffs like khandsari

(ii) Textile

(iii) Manufacture of wood products

(iv) Manufacture of paper products

(v) Manufacture of leather products

(vi) Printing

(vii) Rubber and coal products

(viii) Chemical products like candle manufacture

(ix) Mineral products like earthen toys manufacture

(x) Fire cracker's workers

(xi)Construction workers

(xii)Other related cottage industries to be identified by Nodal

Agencies and other groups as identified by the Nodal Agency and approved by LIC.

B) The occupational groups are :

Beedi workers, Brick Kiln Workers(Jalandhar),Carpenters, Cobblers, Fisherman,

Hamals, Handicraft Artisans, Handloom Weavers, Handloom and Khadi Weavers,

Lady Tailors, Leather and Tannery Workers, Papad Workers attached to 'SEWA',

Physically Handicapped self- Employed Persons, Primary Milk Producers, Rickshaw

Pullers/ Auto Drivers, Safai Karmacharis, Salt Growers, Tendu Leaf Collectors,

Scheme for the Urban Poor, Forest Workers, Sericulture, Toddy Tappers, Powerloom

Workers, Scheme for Women in Remote Rural Hilly Areas.

PLAN’S NAV

The net asset value of different schemes of life insurance Corporation of India for the

insured’s is as follows:

NAV TABLE

NAV'S AS ON DATE 21.08.2009EFFECTIVE

FOR 21.08.2009

BASIC

UNIT

VALUE

NAV AS ON

DATE

REPURCHASE

VALUE

SALE

VALUE

BIMA PLUS (140)

DATE OF

LAUNCH

02.02.2001

SECURED FUND 10 27.1060 25.7507 27.1060

BALANCED FUND 10 32.4856 30.8613 32.4856

RISK FUND 10 44.2874 42.0730 44.2874

FUTURE PLUS (172)

DATE OF

LAUNCH

04.03.2005

BOND FUND 10 13.1779 13.1779 13.1779

INCOME FUND 10 15.0405 15.0405 15.0405

BALANCED FUND 10 15.6018 15.6018 15.6018

GROWTH FUND 10 19.5666 19.5666 19.5666

JEEVAN PLUS (173)

DATE OF

LAUNCH

18.10.2005

BOND FUND 10 13.1729 13.1729 13.1729

SECURED FUND 10 13.3119 13.3119 13.3119

BALANCED FUND 10 13.6167 13.6167 13.6167

GROWTH FUND 10 18.1556 18.1556 18.1556

DATE OF

TAX BENEFITS

The aggregate amount of deduction under all the relevant sections viz. section 80C,

section 80CCC and section 80CCD shall not, exceed Rs.1 Lakh.

1) Deduction from Income for payment of Premium (Sec. 80C).

(a) Life Insurance premia:

The insurance premia paid for a policy is eligible for deduction. The premium paid

should not be in excess of 20% of capital sum assured.

(b) Contribution to Deferred Annuity Plans:

The premia paid for a Deferred Annuity; provided such contract does not contain a

provision to exercise an option by the insured to received a cash payment in lieu of

the payment of annuity is eligible for deduction.

(c) Contribution to Pension/Annuity Plans:

Contribution to New Jeevan Dhara-I and New Jeevan Akshay-V Schemes of LIC

are qualified for rebate under this section.

2) Income tax exemption on Maturity/Death Claims proceeds under

Section 10(10D)

All the benefits payable under a Life Insurance policy are tax free. However in cases

the premium paid in excess of 20% of the capital sum assured within a year,

benefits paid excess of premiums will be taxable. The benefits from a key man

Insurance policy and any sum received under Sec 80DD, Sub-section (3) are also

taxable.

3) Jeevan Nidhi Plan & New Jeevan Suraksha - I Plan (U/s. 80CCC)


FOR 21.08.2009

BASIC

UNIT

VALUE

NAV AS ON

DATE

REPURCHASE

VALUE

SALE

VALUE

BIMA PLUS (140)

DATE OF

LAUNCH

02.02.2001

SECURED FUND 10 27.1060 25.7507 27.1060

BALANCED FUND 10 32.4856 30.8613 32.4856

RISK FUND 10 44.2874 42.0730 44.2874

FUTURE PLUS (172)

DATE OF

LAUNCH

04.03.2005

BOND FUND 10 13.1779 13.1779 13.1779

INCOME FUND 10 15.0405 15.0405 15.0405

BALANCED FUND 10 15.6018 15.6018 15.6018

GROWTH FUND 10 19.5666 19.5666 19.5666

JEEVAN PLUS (173)

DATE OF

LAUNCH

18.10.2005

BOND FUND 10 13.1729 13.1729 13.1729

SECURED FUND 10 13.3119 13.3119 13.3119

BALANCED FUND 10 13.6167 13.6167 13.6167

GROWTH FUND 10 18.1556 18.1556 18.1556

DATE OF

Amounts paid from the taxable income to premiums of the above

annuity are deductible.

4) Deduction under section 80D Medical Premium paid for a Health

Insurance policy is deductible to the extent of Rs. 15000 for an

assessee and/or his family members’ policy/s. A separate exemption

to the extent of Rs. 15,000 for premiums paid for an assessee’s

parent is also available. If any one or both of the parents are Senior

citizens, then an enhanced exemption limit of Rs. 20,000 is

available. Section 80D also covers payment of premium exclusively

for Critical Illness Rider.

5) Jeevan Aadhar Plan (Sec.80DD)

Premium paid for LIC’s Jeevan Aadhar Plan (for the maintenance of an

handicapped dependent) is eligible for deduction from the total income to the extent

of Rs.50,000 and to the extent of Rs.75,000/- where handicapped dependent is

suffering from specified severe disability.

6) Exemption in respect of commutation of pension under Jeevan

Suraksha & Jeevan Nidhi Plans. (Section 10(10A):

A payment received by way of commutation of pension from Jeevan Suraksha &

Jeevan Nidhi Annuity plans is exempt from tax


FOR 21.08.2009

BASIC

UNIT

VALUE

NAV AS ON

DATE

REPURCHASE

VALUE

SALE

VALUE

BIMA PLUS (140)

DATE OF

LAUNCH

02.02.2001

SECURED FUND 10 27.1060 25.7507 27.1060

BALANCED FUND 10 32.4856 30.8613 32.4856

RISK FUND 10 44.2874 42.0730 44.2874

FUTURE PLUS (172)

DATE OF

LAUNCH

04.03.2005

BOND FUND 10 13.1779 13.1779 13.1779

INCOME FUND 10 15.0405 15.0405 15.0405

BALANCED FUND 10 15.6018 15.6018 15.6018

GROWTH FUND 10 19.5666 19.5666 19.5666

JEEVAN PLUS (173)

DATE OF

LAUNCH

18.10.2005

BOND FUND 10 13.1729 13.1729 13.1729

SECURED FUND 10 13.3119 13.3119 13.3119

BALANCED FUND 10 13.6167 13.6167 13.6167

GROWTH FUND 10 18.1556 18.1556 18.1556

DATE OF

CHAPTER-5

FINDINGS


FOR 21.08.2009

BASIC

UNIT

VALUE

NAV AS ON

DATE

REPURCHASE

VALUE

SALE

VALUE

BIMA PLUS (140)

DATE OF

LAUNCH

02.02.2001

SECURED FUND 10 27.1060 25.7507 27.1060

BALANCED FUND 10 32.4856 30.8613 32.4856

RISK FUND 10 44.2874 42.0730 44.2874

FUTURE PLUS (172)

DATE OF

LAUNCH

04.03.2005

BOND FUND 10 13.1779 13.1779 13.1779

INCOME FUND 10 15.0405 15.0405 15.0405

BALANCED FUND 10 15.6018 15.6018 15.6018

GROWTH FUND 10 19.5666 19.5666 19.5666

JEEVAN PLUS (173)

DATE OF

LAUNCH

18.10.2005

BOND FUND 10 13.1729 13.1729 13.1729

SECURED FUND 10 13.3119 13.3119 13.3119

BALANCED FUND 10 13.6167 13.6167 13.6167

GROWTH FUND 10 18.1556 18.1556 18.1556

DATE OF

FINDINGS

Findings: After completing the study following points can be drawn:

1. It has one of the single distribution networks amongst government insurance

players.

2. LIC has many numbers of insurance policies and plans having flexible to meet the

customers’ requirement and expectation.

3. LIC entered the market with aggressive marketing and supported by after sale

services with the help of technology.

4. All LIC Plans come with Sovereign Guarantee i.e., Government of India Guarantee

regarding repayment. Infact, as of now, only LIC plans enjoy this Government

Guarantee.

CHAPTER-6

CONCLSION

CONCLUSION

After completing the project it is concluded that LIC develop its various plans and

policies, flexible in nature, according to the requirements of its targeted market or

customers and is thus beneficial to its customers in various ways. The most important

benefit it provides to its customers is that it is a government owned company. This

lead to increase in the satisfaction level of its customer that is why LIC has more than

200 million policyholders which is equal to the fourth largest country in world.

Therefore it is not only beneficial but better than other insurance companies not only

regarding its product but also its services.

BIBLIOGRAPHY

Information and data used in the project has been collected from the

following sources:-

1. www.licindia.com

2. www.licmutual.com

3. www.lichousing.com

4. www.wikipedia.org

5. www.reportbuyer.com

6. Outlook Money Magazine

12th August 2009, 09 September 2009

7. Money Today Magazine

11 June 2009, September 2009

Documents

Lic Report