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LIFE INSURANCE CORPORATION OF INDIA CENTRAL OFFICE

Dept: Product Development “Yogakshema” Jeevan Bima Marg Mumbai – 400 021 Ref: CO /PD /8 24th February, 2011

To, All HODs of Central Office All Zonal Offices All Divisional Offices All Branch Offices (through DOs) MDCs, ZTCs, STCs, NIA and Audit & Inspection Depts. of Zonal Offices.

Re: INTRODUCTION OF LIC’S SAMRIDHI PLUS (Plan No. 804) 1. INTRODUCTION:

It has been decided to introduce LIC’s Samridhi Plus (Plan No. 804) a close ended plan which would be open for sale from 25th February, 2011 for a maximum period of 3 months. The Unique Identification Number (UIN) for LIC’s Samridhi Plus plan is (512L265V01).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 plan with a policy term of 10 years that offers payment of Fund Value at the end of the policy term based on the highest Net Asset Value (NAV) over the first 100 months of the policy or the NAV as applicable at the end of the policy term, whichever is higher. This Guarantee will be applicable only for payment to be made at the end of the policy term (i.e. 10 years). The premium payment under this plan is limited to single or 5 years. The policyholder can choose the level of cover within the limits, depending on his/her age, the amount of premium payable and whether premium is payable one time or regularly during the premium paying term. The allocated premium will be utilized to purchase units. 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) 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), Guarantee Charge and whether fund is expanding or contracting. Other details of this plan are as follows.

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2. INVESTMENT FUND TYPES:

The premiums allocated to purchase units will be invested according to the investment pattern committed for the fund. The investment pattern will be as under:

Fund 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

Samridhi Plus

Fund

0% to 100% 0% to 100% 0% to 100% Medium risk

In the period during which this product is open for sale, all premiums received shall be invested in Money Market instruments of applicable duration i.e. the period from the date of sale to the date of closure of the plan. After the date of closure of the plan the above investment pattern shall be followed. The face value of the unit shall be Rs. 10/-. The NAV during the term of the policy (i.e. during first 10 years of the policy) will be computed on a daily basis as under: Appropriation price (when fund is expanding): Market value of investments 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 including Guarantee Charge 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 investments held by the fund less the expenses incurred in the sale of assets plus the value of any current assets plus any accrued income net of fund management charges including Guarantee Charge 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 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:

For Single premium policies: 3.3%

For Regular premium policies:

Premium Allocation Charge

First Year 6.00%

2nd to 5th Year 4.50%

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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. At the time of revival (under a lapsed policy), the mortality charge thereafter shall be based on the age nearest birthday as on the date of revival. 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 cover:

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 issue of policy. 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 charge. 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. 30/- per month during the first policy year and Rs 30/- per month escalating at 3% p.a. thereafter, throughout the term of the policy 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 deductible on

the date of computation of NAV at 0.90% p.a. of Fund Value. The NAV, thus declared, will be net of FMC and Guarantee charge as mentioned in c) below.

c) GUARANTEE CHARGES – Guarantee Charge are deductible on the date of computation of NAV at 0.40% p.a. of Fund Value for the cost of investment guarantee. The NAV, thus declared, will be net of Guarantee Charge and FMC.

d) BID/OFFER SPREAD – Nil. e) DISCONTINUANCE CHARGES – This is a charge levied, under 5 year premium paying

term policies, if a policy is surrendered or discontinued. This charge will be levied by canceling appropriate number of units out of Policyholder’s Fund Value on the date of surrender / date of discontinuance of the policy.

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The discontinuance charge for 5 year premium paying term policies is as under:

Where the policy is discontinued during the policy year

Discontinuance charges for the policies having annualized premium up to Rs. 25,000/-

Discontinuance charges for the policies having annualized premium above Rs. 25,000/-

1 Lower of 10% * (AP or FV) subject

to a maximum of Rs. 2500/- Lower of 6% * (AP or FV)

subject to maximum of Rs. 6000/-

2 Lower of 7% * (AP or FV) subject to

a maximum of Rs. 1750/- Lower of 4% * (AP or FV)

subject to maximum of Rs. 5000/-

3 Lower of 5% * (AP or FV) subject to

a maximum of Rs. 1250/- Lower of 3% * (AP or FV)

subject to maximum of Rs. 4000/-

4 Lower of 3% * (AP or FV) subject to

a maximum of Rs. 750/- Lower of 2% * (AP or FV)

subject to maximum of Rs. 2000/-

5 and onwards NIL NIL

AP – Annualised Premium FV – Policyholder’s Fund Value on the date of discontinuance “Date of discontinuance of the policy” shall be the date on which the insurer receives the intimation from the insured or policyholder about discontinuance of the policy (i.e. complete withdrawal from the policy) or on the expiry of the notice period of 30 days, whichever is earlier. Note: As mentioned in Para 6, the notice period of 30 days will start from the date of receipt of notice by the policyholder. There shall not be any discontinuance charge under Single premium policies. Further, there shall not be any discontinuance charge for direct business in respect of Employees of the Corporation.

f) SERVICE TAX CHARGE – A service tax charge shall be levied on all or any of the

charges applicable to this plan as per the prevailing service tax laws / notifications etc. as issued by Government of India from time to time in this regard without any reference to the policyholder. At present, service tax charge under this plan is based on 10.30% of maximum Fund Management Charge (i.e. 1.35% p.a.) allowed by IRDA in terms of circular Ref: 055/IRDA/Actl/ULIP/2009-10 dated 24th September, 2009. In all the other cases, service tax will be based on the actual charges deducted under the plan.

g) MISCELLANEOUS CHARGE – This is a charge levied for an alteration within the contract,

such as change in premium mode to higher frequency and Grant of Accident Benefit after the issue of the policy, and shall be flat amount 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 alteration from regular premium mode to single premium mode or vice versa shall not be allowed.

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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, Mortality Charge and Accident Benefit 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.

In case the policyholder does not agree with the revision of charges the policyholder shall have the option to withdraw the Policyholder’s fund value.

4. APPLICABILITY OF NET ASSET VALUE (NAV):

The allotment of units will be as per IRDA guidelines. The present 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 and in case of complete withdrawal 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 and in case of complete withdrawal etc after 3 p.m. by the Servicing Branch, the closing NAV of the next business day shall be applicable In case of discontinuance, wherein the policyholder does not exercise the option within the period of 30 days of receipt of notice then the NAV as on the date of expiry of notice period shall be applicable. In respect of maturity claim, the Policyholders fund value shall be based on the highest Net Asset Value (NAV) over the first 100 months of the policy or the NAV as applicable on the date of maturity, whichever is higher.

5. BENEFITS:

a) Benefits payable on death: In case of death of the policyholder when the risk cover is in full force, the nominee shall be eligible to get higher of Sum Assured under the Basic Plan and 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. The policyholder’s Fund on death shall be determined at the prevailing NAV as on the date of booking of the liability.

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b) Benefits payable on maturity: On the policyholder surviving at the end of policy term an amount equal to the Policyholder’s Fund Value based on the highest NAV over the first 100 months of the policy or the NAV as applicable at the end of the policy term, whichever is higher, shall be payable.

c) Accident Benefit Rider Option:

Accident Benefit (AB) can be availed of as an optional Rider benefit by paying an additional charge 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.

6. DISCONTINUANCE OF PREMIUMS:

If premiums under the policy have not been paid within the days of grace, a notice shall be sent to the policyholder within a period of fifteen days from the date of expiry of grace period to exercise one of the following options within a period of thirty days of receipt of such notice:

i) Revival of the policy, or ii) Complete withdrawal from the policy.

During the notice period of 30 days, the policy shall be treated as in force and the charges for Mortality and Accident Benefit cover, if any, shall be taken, as usual, in addition to other charges, by canceling appropriate number of units out of the Policyholder’s Fund Value. Insurance cover shall continue till the date of discontinuance of the policy (i.e. till the date on which the intimation is received from the policyholder for complete withdrawal of the policy or till the expiry of the notice period).

The benefits payable under the policy during the notice period shall be same as that under an in-force policy, except Partial Withdrawal, which shall not be allowed if all due premiums have not been paid.

The benefits payable when the policyholder exercises the option for complete withdrawal or does not exercise any option during the notice period shall be as under: If policyholder exercises the option for complete withdrawal from the policy, or does not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated. The Policyholder’s Fund Value as on the date of discontinuance of policy after deducting the discontinuance charge as specified in Para 3.iv.e) shall be converted into monetary terms as specified in Para 7 below and Proceeds of the discontinued policy as specified in Para 7 below shall be payable after completion of 5 years from the date of commencement of the policy.

7. METHOD OF CALCULATION OF MONETARY AMOUNT AND PROCEEDS OF THE

DISCONTINUED POLICY:

The conversion to monetary amount shall be as under: The NAV on the date of application for surrender or as on the date of discontinuance of the

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policy (in case of complete withdrawal of the policy), as the case may be, multiplied by the number of units in the Policyholder’s Fund Value as on that date will be the monetary amount. The Proceeds of the discontinued policy shall be calculated as under: The monetary amount calculated as above shall be transferred to the Discontinued Policy Fund. This Fund will earn a minimum interest rate of 3.5% p.a. from the date of discontinuance of the policy to the date of completion of 5 years from the commencement of the policy. In case of death of the life assured after discontinuance of policy but before completion of 5 policy years, the interest shall accrue from the date of discontinuance of the policy to the date of booking of liability. The Proceeds of the discontinued policy shall be the monetary amount plus the interest accrued on the Discontinued Policy Fund.

8. COMPULSORY TERMINATION:

If the balance in the Policyholder’s Fund Value, at any time after partial withdrawal of units, 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, shall be refunded to the policyholder.

9. SURRENDER VALUE AND SURRENDER CHARGE: If all due premium have been paid and the policy is surrendered, the surrender value, if any, is payable as under:

i) If the policy is Surrendered within 5 years from the date of commencement of the policy: If a policyholder applies for surrender of the policy within 5 years from the date of commencement of policy, then the Policyholder’s Fund Value after deducting the Discontinuance Charge as specified in Para 3.iv.e) shall be converted into monetary terms as specified in Para 7 above. This monetary amount shall be credited to the Discontinued Policy Fund and no charges shall be deducted thereafter. The Proceeds of the discontinued policy, as specified in Para 7 above, shall be payable on completion of 5 years from the date of commencement of policy.

In case of death of life assured after the date of surrender but before the completion of 5 years from the date of commencement of policy, the Proceeds of the discontinued policy shall be payable to the nominee/ legal heir immediately.

ii) If the policy is Surrendered after 5 years from the date of commencement of the policy:

If a policyholder applies for surrender of the policy after 5 years from the date of commencement of policy, then the Policyholder’s Fund Value as at the date of surrender shall be payable. There will no discontinuance charge under the policy.

Once a policy is surrendered it cannot be reinstated. The guaranteed NAV will not apply in such a case.

10. GUARANTEED NAV:

In this product there is a guarantee of the highest NAV recorded on a daily basis, in the first 100 months of the policy, subject to a minimum of Rs. 10/-. The guarantee will be applicable only for units available in the policyholder’s fund at the end of the policy term. The period to be counted for guarantee of NAV shall be 100 months from the date of commencement of policy. This Guaranteed NAV will not be applicable for the payment of death claim, surrender and partial withdrawals.

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11. ELIGIBILITY CONDITIONS AND FEATURES:

For Basic Plan

a) Minimum Basic Sum Assured: 5 year Premium paying term policies: For age at entry below 45 years: 10 times the annualised premium For age at entry 45 years and above: 7 times the annualised premium Single Premium: For age at entry below 45 years: 1.25 times the single premium For age at entry 45 years and above: 1.10 times the single premium

b) Maximum Basic Sum Assured:

5 years Premium paying term policies: For age at entry below 45 years: 20 times the annualised premium For age at entry 45 years and above: 10 times the annualised premium Single Premium Policies: 5 times the Single premium, if age at entry is upto 55 years. 1.25 times the Single premium, if age at entry is 56 to 65 years.

The Sum Assured shall be available in multiples of Rs. 5,000. 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. c) Minimum Premium:

5 years premium paying term policies: Mode Minimum Instalment Premium

Yearly: Rs. [15,000] Half-Yearly Rs. [8,000] Quarterly Rs. [4,000]

Monthly (ECS only) Rs. [1,500] Single premium: Single Rs. [30,000] d) Maximum Premium: 5 years premium paying term policies: Rs. [1, 00,000] p.a. Single premium: No Limit

Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall in multiples of Rs. 250/-.

e) Minimum Entry Age: [8] last birthday (in years) f) Maximum Entry Age: [65] nearest birthday (in years) g) Policy Term : [10] years h) Minimum Maturity Age: [18] years completed i) Maximum Maturity Age: [75] years nearest birthday (in years) Age at entry for the policyholder is to be taken as age nearest birthday except for the minimum age at entry i.e. 8 years.

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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. The Accident Benefit Sum Assured shall not be allowed more than 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: 60 years nearest birthday f) Policy Term: 10 years g) Maximum Maturity Age: 70 years nearest birthday Sum Assured shall be available in multiples of Rs. 5,000

12. ADDITIONAL FEATURES:

a) Top-up: No Top-up shall be allowed under the plan. b) Increase / Decrease in Benefits: No increase or decrease in benefit will be allowed under

the plan. c) Flexibility in payment of premium: The policyholder has the choice either to pay Single

premium (in one lump sum) or to pay premium for the premium paying term of 5 years as selected at the time of proposal with Yearly, Half-yearly, Quarterly or Monthly (through ECS only) mode.

d) Partial withdrawals: A policyholder can partially withdraw the units at any time after the fifth

policy anniversary and provided all due premiums till date of partial withdrawal have been paid, 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 will be allowed twice in a policy year. iii. Partial withdrawals may be in the form of fixed amount or in the form of fixed number

of units subject to a minimum amount of Rs. 2000/-. iv. 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. However, the Accident Benefit Sum Assured, if any, shall not be reduced by such partial withdrawals.

v. Under 5 years Premium Paying Term policies, partial withdrawal will be allowed subject to minimum balance of at least one annualized premium in the Policyholder’s Fund Value.

vi. Under Single Premium policies, the partial withdrawal will be allowed subject to a minimum balance of 25% of the single premium in the Policyholder’s Fund Value.

13. MODES OF PREMIUM PAYMENT:

The policyholder has the choice either to pay Single premium (in one lump sum) or to pay premium for the premium paying term of 5 years as selected, at the time of proposal, either in Yearly, Half-yearly, Quarterly or Monthly (through ECS only) installments.

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There will be no mode specific charges/ rebates.

14. COMMISSION PAYABLE TO AGENTS/ CORPORATE AGENTS/ BROKERS & DEVELOPMENT OFFICER’S CREDIT: Commission to Agents & Corporate Agents:

• For regular premium paying term of 5 years – 5% of the premium in the 1st year and 2% of the premium for subsequent years.

• For single premium policies – 2% of the premium.

• There will be 40% bonus commission on the first year commission under regular premium policies. No bonus commission will be payable on single premium policies.

Commission to Brokers:

• For regular premium paying term of 5 years – 7% of the premium in the 1st year and 2% of the premium for subsequent years.

• For single premium policies – 2% of the premium.

• No bonus commission shall be payable to brokers.

Development Officer’s credit:

• 15% of first year premium in case of Regular Premium paying term of 5 years

• 5% of single premium in case of Single Premium policies

15. CEIS REBATE: No rebate on premium is allowed to Corporation Employees. However, for direct business in respect of Corporation Employees, there will not be any allocation charge as well as discontinuance charge. All other charges shall be as mentioned in Para 3 (ii) to 3 (v).

16. LOANS: There will be no policy loan under this plan.

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

18. DAYS OF GRACE: A grace period of 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 still be valid 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 benefits shall be paid as per details given in Para 6 under Discontinuance of premiums.

19. REVIVALS: If due premium is not paid within the days of grace, a notice shall be sent to the policyholder within a period of fifteen days from the date of expiry of grace period to exercise the option for revival within a period of thirty days of receipt of such notice. If the policyholder exercises the option to revive the policy, the arrears of premium without interest shall be required to be paid. The Corporation reserves the right to accept the revival at its own terms or decline the revival

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of a policy. The revival of a policy shall take effect only after the same is approved by the Corporation and is specifically communicated in writing to the Policyholder. Irrespective of what is stated above, if the Policyholder’s Fund Value is not sufficient to recover the charges during the notice period, the policy shall terminate and thereafter revival will not be allowed. Reinstatement of surrendered policy shall not be allowed.

20. 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.

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

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

23. 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.

24. 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.

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25. 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.

26. ACCOUNTING OF INCOME AND OUTGO Instructions regarding the accounting procedure to be followed under the plan shall be issued separately by Finance & Accounts Department, Central office.

27. UNIT STATEMENT: Unit statement account shall form a part of the policy document. Further, Unit statement has to be issued on a half yearly basis and also as and when a transaction takes place.

28. PROPOSAL FORM: The specimen Proposal Form is enclosed in Annexure II.

29. POLICY DOCUMENT: The specimen Policy document will be sent by the Corporate Communications Department, Central Office. EXECUTIVE DIRECTOR (MARKETING) Enclosures – Annexures I and II

ANNEXURE I

LIC’s SAMRIDHI PLUS (PLAN NO. 804)

Mortality Charge per `1000/- Sum at Risk (i.e.Sum Assured under Basic plan minus Policyholder’s

Fund value after deduction of all other charges) per annum Age n.b.d Charge Age n.b.d Charge

7 0.50 46 4.30

8 0.50 47 4.77

9 0.50 48 5.30

10 0.48 49 5.90

11 0.56 50 6.56

12 0.66 51 7.27

13 0.81 52 8.05

14 0.89 53 8.90

15 0.96 54 9.80

16 1.03 55 10.76

17 1.09 56 11.79

18 1.15 57 12.87

19 1.20 58 13.78

20 1.25 59 14.94

21 1.29 60 16.34

22 1.33 61 17.99

23 1.36 62 19.88

24 1.39 63 22.01

25 1.42 64 24.39

26 1.43 65 27.02

27 1.45 66 28.40

28 1.46 67 32.02

29 1.46 68 36.03

30 1.46 69 40.47

31 1.46 70 45.37

32 1.50 71 50.78

33 1.56 72 56.74

34 1.64 73 63.30

35 1.73 74 70.51

36 1.85

37 1.99

38 2.15

39 2.33

40 2.57

41 2.81

42 3.02

43 3.25

44 3.54

45 3.89

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ANNEXURE II

Form No.

LIFE INSURANCE CORPORATION OF INDIA PROPOSAL FOR LIC’S SAMRIDHI PLUS (UIN: 512L265V01)

“IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE

BY THE POLICYHOLDER”

LIC’s SAMRIDHI Plus is a ULIP plan which is different from the traditional policy in the sense that it is subject to market risk.

LIC does not authorize its agents/intermediaries, staff and officials to express their opinion on the future performance of the “ULIP” fund, excepting the prescribed

illustrative rate of 6% and 10% growth.

BRANCH OFFICE:----------------- DIVISION:----------------- [ ------------ FOR OFFICE USE ONLY ---------] PROPOSAL NO. : INWARD NO. :

IDENTITY NO. : DT.OF RECEIPT : POLICY NO.ALLOTED : AGENCY CODE : NO.OF UNITS ALLOTED : DEV.OFFICER’S CODE : AMOUNT PAID : IS AGENCY INFORCE? : AMOUNT PAID ON : AGENCY INFORCE UPTO: TRANSACTION NO./DATE : IS LICENCE INFORCE? : CASHIER’S INITIAL : LICENCE INFORCE UPTO:

________________________________________________________________ ALL ANSWERS TO BE FILLED IN BLOCK LETTERS. ANSWERS MUST BE GIVEN IN WORDS. STROKES OF PEN OR DOTS WILL NOT BE ACCEPTED AS REPLIES.

______________________________________________________________ AMOUNT PAID BY CASH /CHEQUE/DD:

DRAWN ON: (NAME & ADDRESS OF THE BANK) BANK DRAFT/CHEQUE NO.: AMOUNT:Rs. (IN WORDS)Rs.

1. a) (i) NAME IN FULL OF LIFE TO BE ASSURED :

(ii) FATHER’S FULL NAME:

(iii) IF LIFE TO BE ASSURED IS MINOR, NAME OF THE PROPOSER:

(iv) RELATIONSHIP WITH THE LIFE TO BE ASSURED:

b) (i) ADDRESS ( FOR COMMUNICATION ) : TEL.NO./MOBILE NO.: E-MAIL ADD.: (ii) PERMANANT ADDRESS :

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c) NOMINEE'S DETAILS

NAME: DATE OF BIRTH/AGE: RELATIONSHIP WITH LIFE TO BE ASSURED: ADDRESS:

d) APPOINTEE (IF NOMINEE IS MINOR): NAME: DATE OF BIRTH/AGE: RELATIONSHIP WITH NOMINEE: ADDRESS:

2. PLAN DETAILS

MODE OF PREMIUM PAYMENT: SINGLE PREMIUM/ YEARLY / HALF-YEARLY / QUARTERLY / MONTHLY (ECS)

a) SUM ASSURED UNDER BASIC PLAN:Rs. (IN WORDS) Rs. b) ACCIDENT BENEFIT SUM ASSURED: Rs.

INVESTMENT PATTERN OF THE FUNDS

Fund Type Investment in Government / Government Guaranteed Securities / Corporate Debt

Short-term investments such as money market instruments (including Govt Sec & Corporate Debt)

Investment in Listed Equity Shares

Details and objective of the fund for risk / return

Samridhi Plus Fund

0% to 100%

0% to 100%

0% to 100%

Medium risk

c) OTHER DETAILS:

PLAN NO. DOB OF LIFE ASSURED

AGE TERM MODE AGE PROOF

SEX QUALIFICATION OCCUPATION EMPLOYER’S NAME

ANNUAL INCOME SOURCES OF INCOME WHETHER INCOME

TAX ASSESSEE

RURAL/URBAN FIRST/SUBSEQUENT

NATIONALITY DISTRICT TALUKA VILLAGE

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3. DETAILS OF EXISTING POLICIES INCLUDING UNIT-LINKED POLICIES (INCLUDING POLICIES SURRENDERED/LAPSED DURING LAST 3 YEARS):

POL. NO.

INSURANCE COMPANIES FROM WHERE THE PREVIOUS POLICY/

POLICIES HAVE BEEN PURCHASED WITH

ADDRESS (IF PREVIOUS POLICIES ARE FROM LIC

OF INDIA, GIVEN NAME OF BRANCH/ D.O.)

TABLE AND

TERM

SUM ASSURED ON MAIN

PLAN

TERM ASSURANCE RIDER SUM ASSURED

CRITICAL ILLNESS

RIDER SUM ASSURED

MODE AMOUNT OF

ACCIDENT BENEFIT TAKEN

YEAR OF ISSUE

WHETHER ACCEPTED

AS PROPOSED

AT ORDINARY RATES. IF NOT’ THE TERM OF

ACCEPTANCE

MEDICAL OR NON- MEDICAL

WHETHER INFORCE FOR FULL

SUM ASSURED

IF NOT, GIVE DUE DATE OF LAST PREMIUM PAID OR DATE OF

SURRENDER

4.a ) HAS ANY POLICY ON LA'S LIFE LAPSED OR SURRENDERED DURING THE LAST 3 YEARS?

b) HAS A LIFE INSURANCE PROPOSAL ON THE LIFE OF LIFE TO BE ASSURED EVER BEEN

i) WITHDRAWN/DEFERRED/DROPPED/DECLINED :YES/NO ii) ACCEPTED WITH EXTRA PREMIUM OR LEIN :YES/NO iii) ACCEPTED ON TERMS OTHERWISE THAN THOSE PROPOSED: YES/ NO

c) IS YOUR LIFE NOW BEING PROPOSED FOR ANOTHER ASSURANCE OR AN

APPLICATION FOR REVIVAL OF A POLICY ON YOUR LIFE OR ANY OTHER PROPOSAL UNDER CONSIDERATION IN ANY OFFICE OF THE CORPORATION OR TO ANY OTHER INSURER? IF YES, GIVE DETAILS.

5. FAMILY HISTORY: LIVING DEAD MEMBER PRESENT

AGE STATE OF HEALTH

YEAR OF DEATH

AGE AT DEATH

CAUSE OF DEATH

FATHER MOTHER BROTHERS SISTERS WIFE/HUSBAND CHILDREN 6. PERSONAL STATEMENT REGARDING HEALTH OF LIFE TO BE ASSURED:

Personal history Answer 'Yes' or 'No'

If 'Yes' give full details

(a) During the last 5 years did you consult a Medical Practitioner for any ailment requiring treatment for more than a week? (b) Have you ever been admitted to any hospital or nursing home for general check up, observation, treatment or operation?

(c) Have you remained absent from place of work on grounds of health during the last 5 years?

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(d) Are you suffering from or have you ever suffered from ailments pertaining to Liver, Stomach, Heart, Lungs, Kidney, Brain or Nervous system?

(e) Are you suffering from or have you ever suffered from Diabetes, Tuberculosis, High Blood Pressure, Cancer, Epilepsy, Hernia, Leprosy or any other disease?

(f) Do you have bodily defect or deformity? (g) Did you ever have any accident or injury? (h) Do you use or have ever used

(1) Alcoholic drinks: (2) Narcotics: (3) Any other drugs: (4) Tobacco in any form:

(i) What has been your usual state of health? (j) Have you ever received or at present awaiting/undergoing medical advice/treatment or tests in connection with Hepatitis B or AIDS related condition?

(k) Are you wearing glasses? If so, power of glasses:

(l) (a) Missing teeth if any, if so number missing (b) Are you wearing well fitting denture? If so, for how many teeth?

7. PHYSICAL MEASUREMENTS OF LIFE TO BE ASSURED (IN CASE OF NON-MEDICAL):

Ht.(in cms.) ________________ Wt.(in kg.) _________________

8. TO BE ANSWERED IF LIFE TO BE ASSURED IS A MARRIED FEMALE:

(A) Are you pregnant now?

Date of last delivery

Have you had any abortion or miscarriage or Caesarean section? If so, give details.

Date of last Menstruation

(B) Husband's Full Name His Occupation His Annual Income

(C) Details of Husband's Insurance:

POLICY NO.

INSURANCE COMPANIES FROM WHERE THE PREVIOUS POLICY/

POLICIES HAVE BEEN PURCHASED WITH ADDRESS (IF PREVIOUS

POLICIES ARE FROM LIC OF INDIA, GIVEN NAME OF BRANCH/ D.O.)

SUM ASSURED

TABLE AND TERM

PRESENT STATUS OF

THE POLICY

9. WHETHER THE TERMS AND CONDITIONS OF THE PROPOSED PLAN HAVE BEEN EXPLAINED TO YOU BY THE AGENT: YES /NO

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10. HAVE YOU UNDERSTOOD FULLY THE TERMS AND CONDITIONS OF THE PLAN YOU PROPOSE TO TAKE?: YES/NO

11. DO YOU AGREE THAT ON ATTAINMENT OF AGE OF MAJORITY BY THE LIFE TO BE

ASSURED, THE POLICY WILL VEST IN HIM ABSOLUTELY? (Applicable in case of life to be assured is minor) : YES/NO

DECLARATION

I --------------------------------------, the proposer / the person whose life is herein before being proposed to be assured, do hereby declare that the foregoing statements and answers have been given by me after fully understanding the questions and the same are true and complete in every particular and that I have not withheld any information and I do hereby agree and declare that these statements and this declaration shall be the basis of the contract of assurance between me and the Life Insurance Corporation of India and that if any untrue averment be contained therein the said contract shall be absolutely null and void and all moneys which shall have been paid in respect thereof shall stand forfeited to the Corporation. Notwithstanding the provision of any law, usage, custom or convention for the time being in force prohibiting any doctor, hospital and / or employer from divulging any knowledge or information about me concerning my health or employment on the grounds of secrecy, I, my heirs, executors, administrators and assignees or any other person or persons, having interest of any kind whatsoever in the policy contract issued to me, hereby agree that such authority, having such knowledge or information, shall at any time be at liberty to divulge any such knowledge or information to the Corporation. And I further agree that if after the date of submission of the proposal but before the issue of the First Premium Receipt (i) any change in my occupation or any adverse circumstances connected with my financial position or the general health of myself or (ii) if a proposal for assurance or an application for revival of policy on my life made to any office of the Corporation or with any other life insurer is withdrawn or dropped, deferred or accepted at an increased premium or subject to a lien or on terms other than as proposed I shall forthwith intimate the same to the Corporation in writing to reconsider the terms of acceptance of assurance. Any omission on my part to do so shall render this assurance invalid and all moneys which shall have been paid in respect thereof shall stand forfeited to the Corporation.

I hereby give my consent for undergoing medical examinations / tests including test for HIV as required by the Corporation. I further declare that I have discussed my financial standing with the agent/intermediary. I have been informed about the risk profile of the ULIP plan(s) and fund(s). In consultation with the agent/intermediary, I have taken a personal and independent decision in an informed manner to go for the Plan and Fund which I have chosen. I understand that if I have deposited “application money” as a token consideration under this proposal for insurance, the closing NAV of the date of completion only will be applied for allotment of units.

Dated at ____________________ on the _______ day of __________ 200

Signature of Witness Name___________________ _____________________

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Occupation_______________ Signature or Thumb impression of the person whose life is proposed

Address__________________ to be assured or the Proposer (if different from the life to be assured).

When life to be assured is a minor, Proposer’s signature is required.

___________________________________________________________________________

In case form is filled up / signed in a language different from that of the Proposal Form:

Declaration by the person filling in the form:

“I hereby declare that I have fully explained the above questions to the proposer / the Life to be

Assured in _________ language and I have truthfully recorded the answers given by the

proposer / Life to be assured.”

Name of the Declarant:________________ Signature:____________________

Address of the Declarant:_____________________

___________________

___________________

Declaration by the Proposer / Life to be assured:

“I certify that the contents of the form and documents have been fully explained to me by Mr /

Ms:__________________________________ and I have understood the significance of the

proposed contract.

Signature or thumb impression of the person whose life is proposed to be assured or the

Proposer:___________________________

___________________________________________________________________________

In case the Proposer and/or the Life to be assured is/are illiterate, the thumb impressions

of the Proposer / Life to be assured should be attested by a person of standing whose

identity can easily be established, but unconnected with the Corporation and this

declaration should be made by him/her.

“I hereby declare that I have fully explained the above questions and contents of the proposal

form to the proposer / life to be assured in ______________language, and that the proposer /

life to be assured has affixed his / her thumb impression above after fully understanding the

contents thereof.”

Name of the Declarant:________________ Signature:____________________

Address of the Declarant___________________

___________________

___________________

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DECLARATION BY PARENT / GUARDIAN (IN CASE LIFE TO BE ASSURED IS A MINOR)

“With reference to the proposal for Rs.______________ on the life of my son/daughter, I hereby

agree and undertake that if under the policy that may be issued, any payment is received by me

by way of surrender or for any other reasons whatsoever before the policy has vested in life

assured, I shall utilize the moneys hereby received for the benefit of the minor or his estate.”

Signature of Parent / Guardian:_____________

Signature of witness:____________________

Name:_______________________________

Occupation:___________________________

Address:_____________________________

AUTHORITY LETTER

I,________________________ ,authorise my Agent / Dev.Officer, Shri / Smt / Kum _________________________ to collect my policy bond bearing no. _______________ under LIC’s Samridhi Plus. _______________________________ Life Assured’s / Proposer's signature Name :__________________________

SUMMARY OF SECTION 45 OF INSURANCE ACT, 1938

No policy of life insurance shall, after the expiry of two years from the date on which it was effected, be called in question by an insurer on the ground that a statement made in the proposal for insurance or in any report of a medical officer, or referee, or friend of the insured, or any other document leading to the issue of the policy, was inaccurate or false, unless the insurer shows that such statement was on a material matter or suppressed facts which it was material to disclose and that it was fraudulently made by the policyholder and that the policyholder knew at the time of making it that the statement was false or that it suppressed facts which it was material to disclose. Note: "Material" shall mean and include all important, essential and relevant information in the context of underwriting the risk to be covered by the Corporation.

Insurance Act 1938 under Section 41 1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to

any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectus or tables of the insurer. Provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this sub-section if at the time of such acceptance the Insurance agent satisfies the prescribed conditions establishing that he is a bonafide Insurance Agent employed by the insurer.

2) Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees.

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N.B. Rebate of premiums shall be allowed only in accordance with the details given in the prospectus or table of premium rates or, as the case may be, the relevant document, and that an offer or acceptance of any other rebates shall be an offence under Section 41 of the Insurance Act, 1938.

For Medical Cases only "I certify that the Proposer has signed/Put his/her thumb impression in my presence after admitting that all the answers to Questions Nos.6 and onwards of this form __________________________ have been correctly recorded." Signature of Thumb impression of the Life Proposed N.B. Signature or thumb impression should be __________________________________________ Affixed in the presence of Medical Examiner. (Signature of the Medical Examiner)