Project Lic Complete

Project On  Life Insurance corporation of   India Submitted By

Gaurav Kumar Gupta P.G.D.M First Semester 

Gaurav Kumar Gupta BML/01/14

School Of  Management Science Lucknow PREFACE

 The field of insurance has taken a giant leap at the thre thresh shol old d of twen twenti tiet eth h cent centur ury y. Insu Insura ranc nce e have have become an integral part of life of man all over the globe.

The

proverb

‘Need

is

the

mother

of 

inve in vent ntio ion’ n’ is prov provin ing g equa equall lly y cor correct ect in case case of  insurance Insurance have already had a considerable impact on many aspects of our society. This project on “life Insu Insura ranc nce e corp corpor orat atio ion n of Indi India” a” deal deals s with with the the automation of various activities done in insurance Gaurav Kumar Gupta BML/01/14

lik like how how the the in insu sura ranc nce e com compani panies es doin doing g ther there e business and what is the feature of life insurance.

ACKN ACKNO OWLED WLEDGE GEME MENT NT r. S u ud d h ir i r S h ar ar a n s i r W e a re r e h ea e a rt r t y g ra r a te t e fu f u l t o M r. (d dii rre e ct c t or o r ). ). source

of

T he he y

h av av e

inspiration

a lw l w ay ay s had

b ee ee n work,

an

i nv n v al a l ua u a bl bl e

sincerity

and

dedication. I t gives me immense pleasure in submitting this

project on “Life Insurance Corporation of India”. I have developed this project in partial fulfillment of  P.G.D.M (I S em) from ‘”SCHOOL OF MANAGEMENT

SCIENCE LUCKNOW” I would like to express my sincere ineptness to my Project Guide SHUBHENDRA SINGH PARIHAR for his c o ns n s t an a n t g u id i d a nc n c e a n d v a lu l u a bl b l e s u pp p p o rt r t d u ri r i ng ng t h e project work. Encouragement and excellent guidance in the successful completion of the project work. Gaurav Kumar Gupta BML/01/14

And of course nothing could have come true without the

support

c la l a ss s s ma m a te te s

of f or or

my t he h e ir ir

family, c on o n st s t an an t

friends

and

all

the

e nc n c ou o u ra r a ge g e me m e nt nt

a nd nd

u se s e fu f u l t ip i p s t hr h r o ug u g h o ut u t m y p ro ro je j e ct c t . I w il i l l a lw l w ay ay s grateful to them.

Gaurav Kumar Gupta

CONTENTS 

Introduction

 Preface 

Acknowledgement



Objective of the project



Methodology



Finding



Project Analysis



Conclusion



Li Gaurav Kumar Gupta BML/01/14



mitation

Bibliography

INTRODUCTION LIC of India is the one and only public sector life insurance Company in India. Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company Compan y, the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society, 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 nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. Gaurav Kumar Gupta BML/01/14

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.

Nationalization In 1955, parliamentarian Feroze Gandhi raised the matter of  insurance fraud by owner's of private insurance companies. In the ensuing investigations, one of India's wealthiest businessmen, Ram Kishan Dalmia, Dalmia, owner of the Times of India newspaper, was sent to prison for two months. Eventually, Eventually, the Parliament of India passed the Life Insurance of India Act on 1956 1956--06-19 06-19,, and the Life Insurance Corporation of India was created on 1956 1956--09-01 09-01,, by consolidating the life insurance business of 245 private life insurers and other entities offering life insurance services. se rvices. Nationalization of  the life insurance business in India was a result of the Industrial Policy Resolution of 1956, 1956, which had created a policy framework for extending state control over at least seventeen sectors of the economy, economy, including the life insurance. The company began operations with 5 zonal offices, 33 divisional offices and 212 branch offices. Current status

Over its existence of around 50 years, Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses, and contributed around 7 % of India's GDP in 2006. The Corporation, which started its business with around 300 offices, 5.6 million policies and a corpus of INR 459 million, has grown to 2,048 offices servicing around 180 million policies and a corpus of over INR 3.4 trillion. The organization now comprises 2048 branches, 100 divisional offices and 8 zonal offices, and employs over 1 million agents. It

Gaurav Kumar Gupta BML/01/14

also operates in 12 other countries, primarily to cater to the needs of Non Resident Indians. With the change in the India's economic philosophy from the early 1990s, and the subsequent relaxation of state control co ntrol over several sectors of the economy e conomy,, the monopolistic position of the Life Insurance Corporation of India was diluted, and it has had to compete with a number of other corporate entities, Indian as well as transnational Life Insurance brands. In the financial year 2006-07 Life Insurance Corporation of India's number of policy holders are said to have h ave crossed a whopping 200 million (fourth in terms of population of the countries of the world)

Subsidiaries LIC owns the following subsidiaries: •

Life Insurance Corporation of India International : This is

a joint venture offshore company promoted by LIC which commenced operations in July, 1989 with the objectives of  offering US$ denomimated policies to cater to the insurance needs of NRIs 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, Industries, Nepal Nepal.. •

LIC Lanka: A joint venture company formed in 2003 with the

Bartleet Group of Companies, Companies , Sri Lanka. Lanka.

Gaurav Kumar Gupta BML/01/14

School Of  Management Science Lucknow

Certificate It is to cer certif tify tha that the the pro project ject work ork enti ntitled tled “ Life

Insu Insura ranc nce e

Corp Corpor orat atio ion n

of Indi India a” which is being

submitted by me in partial fulfillment of the requirement for for award ard of the the diplo ploma of PGDM GDM (IS (IST SEM SEM). is an authentic

work

Manage Manageme ment nt

carried

Scien Science ce

out

by

unde underr

me the the

at

Scho School ol

super upervi vis sion

of  and

Gaurav Kumar Gupta BML/01/14

guidance of Mr . Shubhendra Singh Parihar  The matter embedded in this project work has not been submitted earlier for the award of any other degree or diploma. Gaurav Kumar Gupta PGDM (IST SEM)

(Signature & Name of Di Director)

(Signature of student)

Objective of the Project  When LIC was formed in 1956 through the amalgamation of 225 private companies, its business objectives complemented its social objectives. The main objective is to spread life insurance to every ever y nook and corner of the country especially rural areas, to socially and economically backward classes and provide them reasonably-priced financial cover against death. Other objectives include encouraging

people to save for the future by b y making insurance-linked savings more attractive and secure. The funds created are then utilized and invested for nation building. The insurance business is conducted with the full realizations that LIC is only a trustee of the insured public and priority is given to meet the needs that arise due to change in the social and economic environments. Even today after 50 years, the core value of social commitment has not changed. What have changed in recent times are customers’ expectations and the environment in which the life

Gaurav Kumar Gupta BML/01/14

insurance sector operates. This is due to globalization which has opened up the insurance sector to private players. IT for Insurance

IT policy flows from the business and social objectives. IT usage covers all business activities of the organization. This includes finance, investment, product development, actuarial, underwriting, customer relationship management, marketing, policy servicing, human resource development, office servicing, and estate management. Its role is not to automate processes. Rather, it is a strategic tool to simplify procedures and revamp processes. This helps create a very efficient customer service management system. It not only provides anywhere, any time service, it also provides greater  accountability, accountability, transparency and responsiveness in all business processes. In today’s world, IT is a must for any industry to keep pace with the customer’s changing expectations. This is especially relevant in the service industry. industry. The insurance sector has to ensure that the technology it chooses does not lag behind where customer  expectations are concerned. In our case, LIC has more than 16 crore policy holders. So it has to induct the best IT products available and use them to cater to the needs of the customers and deliver anywhere an ywhere any time service on demand and to add value v alue to its new products. The trust and the goodwill of the customer gained in the last 50 years have to be consolidated by making all activities more customer-focused. For instance, LIC has a corporate Web site to provide information on products, services, policy status, grievances and premium calculator. calculator. Other facilities include touch-screen information kiosks at central locations to provide 24 x 7 inquiry services to customers. Info centers are set up at major cities to provide call centre type services. Alternate premium payment channels like ECS, Internet payment gateways as well as ATMs ATMs of Bank’s •

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 Gaurav Kumar Gupta BML/01/14

and providing them adequate financial cover against death at a reasonable cost. •

•

•

•

•

•

Maximi Maxi mize ze mo mobi bililiza zati tion on of pe peop ople le's 's sa savi ving ngs s by ma maki king ng insurance-linked savings adequately attractive. Bear in min Bear ind, d, in the in inve vest stm men entt of fun unds ds,, th the e pr prim imar ary y 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 o f attractive return. Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. polic yholders. 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. courtesy.

Promote amongst all agents and employees of the Corporation a sense of participation, par ticipation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective. The One True Objecti Obje ctive ve R m+ A4 O/ I( E

This attitude-and the resulting vagueness-seems to come from the fact that most of us don't really reall y know what we mean by career  objective. Reading between the lines of expert opinions, we begin to see that they may really be talking about two different kinds of  objectives:

1. A career objective objective for for your your life; life; and Gaurav Kumar Gupta BML/01/14

2. A career career objectiv objective e for your resume resume Come again? Focus those glazing eyes, and let's take a closer  look. The entry of private players in life insurance-

The entry of private players in life insurance has resulted in a drop in the market share for Life Insurance Corporation. But what has perhaps been lost in all the heat and dust of market share and topline growth is that the Life Insurance Corporation has emerged as a regional giant with assets of over Rs 8-lakh crore, which has been providing consistent, returns to the government gov ernment and policyholders for 52 years. Life Insurance Corporation chairman TS Vijay an speaks of how LIC is a growing organization and the corporation’s plans of regaining its lost market share.

Impact of the financial crisis on Life Insurance Corporation

LIC is a public sector insurer and a domestic investor. As such, we are not directly affected by the global financial crisis. However Ho wever,, the volatility in Indian financial market due to the uncertainty in global markets may affect returns we get on our investments. But LIC has an indisputable record of prudently planning its investments and getting the maximum returns on the policyholders’ money. money. We will continue to do that in any an y type of scenario. Why has the new business growth slowed? What will be the impact of the lower lo wer growth on LIC’s performance? Will it affect ratios? Total premium growth of LIC has always been quite stable, even when there are periodical ups and downs do wns in new premium income. Last year, we ended the year with around 10% growth in First Premium income despite several odds. However, However, the growth in total premium income was quite healthy, healthy, indicating better  conservation ratio. Our overall expense ratio is the least in the industry. industry. Last year, I Gaurav Kumar Gupta BML/01/14

was only 11.94%, and it was just 5.56%, excluding the commission. The surplus generated was a record high of Rs 16,598.65 crore, which enabled us to give higher terminal bonus to our “with profit” policyholders and to increase dividend to the government. Having said that, I agree that there has been a decline in the new premium in the current financial year. year. One of the reasons was that after withdrawal of our successful old plans, we did not immediately introduce any new ULIP. ULIP. Since then, we have launched new products and the response has been very positive and encouraging. Also, we had some issues with the union of development officers, which have been more or less sorted out through series of  consultations and discussions. In September, September, the figures have started picking up, and I am sure, we will recapture the lost ground very soon. Private insurers are growing their market share by growing distribution. LIC is close to saturation level in terms of distribution. How will you retain the market share? It is not accurate to say sa y that LIC has reached its saturation point in terms of distribution, as we are expanding our reach and network. Other insurers are perhaps expanding very fast and the effect is reflected in their balance sheets. We do have constraints of capital and any growth has to be supported by internal accruals only. Hence, we follow the policy of steady and profitable growth and distribute 95% of surplus to our “with profit” policyholders. Such a practice makes our products better. better. And I am sure, this will, in the long run, determine who becomes winner in the life insurance market in India. How do you propose to comply with IRDA’s IRDA’s decision to cap single company exposure at 10% of a company’s capital? First of all, let me say that new ne w regulations are not only about equity exposure, but encompass several other aspects too. Second, these norms are not just LIC-centric, but applicable to the whole industry. industry. Our total assets of more than Rs 8-lakh crore are our legacy built on the basis of earlier regulations and norms under  Gaurav Kumar Gupta BML/01/14

the Insurance Act. We have always followed applicable norms in our operations and we have an impeccable track record of being a prudent investor, keeping in view the best interests of our o ur policyholders. New investment norms have several changes from the earlier one and we are working on them and are in touch with IRDA where where we have problems. Will the exposure limit force LIC to divest in blue chips c hips and invest in companies that have a lower credit rating?

Methodology 

TYPE OF RESEARCHTo study the Insurance company in India. I have gone through vari variou ous s news news pape papers rs,, maga magazi zine nes, s, webs websit ites es and and coll collec ecte ted d info inform rmat atio ion n and and data data.. This This stud study y is expl explor orat ator ory y in natu nature re because I am not going to give any suggestion or  recommendation. Gaurav Kumar Gupta BML/01/14

Data collection:- (Secondary data) In data collection method we shall collect the secondary data from the following sources. News paper  Magazine Internet Visual vmpro software(Lic)

• • • •

Other sources for information .

•

STATICAL TOOL’S

SPSS 16.0 MS EXCEL MS Word. MS Power point

• • • •

Parameters of Research

•

Product range offered. Service quality. Claim’s settlement’s history. Network

•

Benefit offered to customer’ customer ’s

• • •

Finding

Product offered to customer Gaurav Kumar Gupta BML/01/14



Children's Policy

Komal Jeevan - Plan No. 159 Children Deferred - Plan no.41 Jeevan Kishore - Plan no.102 Jeevan Chhaya - Plan no.103 Marriage Endowment/Educational Endowment/Educational Annuity - Plan No. 90 Jeevan Anurag - Plan no.168 

Endowment Policy Endowment with Profits - Plan no.14 Limited Payment Endowment with Profits - Plan no.48 Jeevan Mitra - Plan no.88 New JanaRaksha Policy - Plan no.91 Jeevan Anand Plan no. 149 Jeevan Mitra Triple Cover - Plan no.133

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Group Insurance Policy

Janashree Bima Yojana Group Insurance Insurance Scheme in lieu of EDLI Group (Term) Insurance Scheme Group Savings Linked Insurance Scheme Group Superannuation Scheme Group Mortgage Redemption Assurance Assurance Scheme

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Joint Life Policy Jeevan Saathi - Plan no.89

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Money Back Policy Money Back with Profit - Plan no.75 New Money Back - Plan no.93 Jeevan Surabhi 15 yrs - Plan no.106 Jeevan Surabhi 20 yrs - Plan no.107 Jeevan Surabhi 25 yrs - Plan no.108 Gaurav Kumar Gupta BML/01/14

Jeevan Bharati Plan No 160 Jeevan Samriddhi Plan No 154, 155, 156 157 Bima Bachat- Plan no.175 

Pension Plans or Annuities New Jeevan Dhara - Plan no.148 New Jeevan Suraksha Plan no. 147 Jeevan Akshay II Plan no. 163 Jeevan Nidhi Plan no. 169 Jeevan Akshay V Plan no. 183

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Special Plans Term Assurance - Plan no.43 Mortgage Redemption - Plan no.52 Jeevan Aadhar - Plan no.114 Market Plus - Plan No 181 Jeevan Vishwas Plan No. 136 Jeevan Saral Plan No. 165 Jeevan Pramukh Plan No. 167 Bima Nivesh 2005 Plan No 171 Money Plus-Plan No 180

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Term Policy Convertible Term Assurance - Plan no.58 New Bima Kiran Term Assurance Anmol Jeevan I Plan No- 164 Amulya Jeevan-Plan No-177

Service Quality Your Policy Bond And Its Safety Your Policy Number Policy Conditions Alterations In Policy If Your Policy Is Lost Gaurav Kumar Gupta BML/01/14

Your Contact Address – Keep Us Posted Without Fail Admission Of Age Nomination Assignment When To Pay The Premiums Grace Period For Premium Payment How And Where To Pay The Premiums Policy Status – Where Available Revival Of Lapsed Policies Availing Loans On Policies Surrender Value Maturity, Survival Benefits, Disability And Death Claims Policies Under Salary Savings Scheme Helpline

Your Policy Bond and Its Safety The policy bond is the document that is given to you after we accept your proposal for insurance. The risk coverage coverage commences after acceptance of your proposal and the conditions and privileges of your policy are mentioned in the policy bond. This is an important document which would be referred to for various servicing interactions interactions with you – Keep the policy bond safe. It will be required at the time of settlement of claims on the policy. policy. You will also require it if you are availing a loan or want to assign the policy. Inform your spouse/Parents/Children spouse/Parents/Children as to where the policy is kept. In case you are handing over the policy bond to any person or office, please take a written acknowledgement. Keep a Photostat copy of the policy for your reference.

Your Policy Number Gaurav Kumar Gupta BML/01/14

The policy number is consisting of nine digits and can be found at the top left hand corner of the schedule of your policy bond. This is a unique identification number that distinguishes your policies from other policies and will remain unchanged throughout the lifetime of the policy. Remember to quote the policy number every time in your correspondence, as it helps us to locate your records for reference.

Policy Conditions Every policy is taken for different types of needs; therefore the conditions for your policy will vary according to the Plan and Term of  the policy. The policy schedule contains on the first page of your policy, policy, like the ones mentioned above as well as other information like nominee, your address etc. It also shows the date of commencement of your policy, date of birth, date of maturity, due dates and months in which the renewal premiums are to be paid etc. The second page onwards carries the various policy conditions like risk coverage, additional risks coverage if opted for, standard benefits that are available for all policies, accident benefit if opted for, exclusion of risks if any and other conditions that govern the contract of insurance. insurance. Apart from death benefits there are other standard benefits and benefits opted by the policyholder

Alterations In Policy There may be instances when you would like to make alterations in your policy like change of premium payment mode, reduction in premium paying term etc. your applications may be given in writing to the branch that services your policy for our further action.

If Your Policy Is Lost Kindly make a thorough search before concluding that you have lost the policy bond. Look for the same within your residence, among Gaurav Kumar Gupta BML/01/14

your investment papers, at your office and even with your agent to whom you might have entrusted the document for some reason. It could have been even pledged with LIC/any other financial institution for availing a loan by you. LIC retains the policy bond when you go in for a loan against the policy. Make sure that the document you are searching is not one that has already been assigned to LIC, or to another financial institution. If the policy bond is partially destroyed due to natural causes like, fire, flood, etc, the remaining portion may be returned as evidence of loss of policy to LIC, while applying for a duplicate policy. In case you are sure that the policy bond is untraceable due to unknown causes, there is a simple procedure to comply with while applying for the duplicate policy at the branch that services your policy

Your Contact Address – Keep Us Posted without Fail Your address is very important for us. Without your latest address we would not be in a position to contact you for any service offering. We would not like to keep any benefit that is due to you pending for want of this very important information. Whenever you shift residences, please inform the new address to us. Otherwise any communication we send to you, like premium notices, discharge vouchers for maturity and survival benefits etc., will get delayed in reaching you. LIC provides for change of addresses, inclusion of telephone numbers, mobile numbers and email addresses in your contact addresses information. Kindly inform your servicing branch to incorporate the same in your policy records.

Admission of Age Check your policy bond and see if your date of birth is correctly given therein. This is one of the factors on which the premiums you pay for your policy is arrived at. This would also form the basis of all future policies you might avail from us. In case your earlier policies do not have your date of birth incorporated and you do have a date of birth certificate issued by Gaurav Kumar Gupta BML/01/14

the competent authority, authority, you may send an attested copy of the same to us, with a request r equest to admit your age (Click (Click here to find out the certificates of age that LIC accepts.)

Nomination Ensure that the nominees name is correctly incorporated in the policy bond. You may change the nomination in your policy any time during the lifetime of the policy In case you have not included the name of the nominee till now, please do not delay; inform us your nomination immediately. Kindly note that the change of nomination has to be done in the branch that services your policy. The nominee is the person to whom the insurance claim amounts would be payable, in case anything unfortunate within the purview of the policy conditions happens to you. The policy is usually taken by you to benefit your family – nominate the persons who’ll have the welfare of your family in your absence; the usual preferences being spouse and children. You may nominate even minors like your children, in which case you have to name another person who’ll have the welfare of the minor children, as an appointee

Assignment In case you are raising a loan against your policy from LIC or any other financial institution, your policy would have to be assigned to LIC or the financial institution. When you assign the policy the title of the policy is shifted from your name to that of the institution. The policy would be reassigned to you on the repayment of the loan. A fresh nomination should be done after reassignment of the policy. policy. Assignment of policies can be done even when a loan is not required or for some special purposes

When to Pay the Premiums Remember to pay your premium in time, even if our notices do not Gaurav Kumar Gupta BML/01/14

reach you. There may be a postal delay. LIC usually sends premium notices one month in advance to the due month of the premium. The months in which premiums are due are given on the first page of the Policy bond.

Grace Period For Premium Payment In case you have not paid the premium within the due date there is still time for you to make the payments without payment of interest on the premium. This period is called the grace period. (With the exception of some plans) The grace period for policies where the premium payment mode is monthly is 15 days from the due date. The grace period for policies where the premium payment mode is quarterly, half-yearly or yearly is one month but not less than30 days.

How and Where To Pay the Premiums 

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By cash, local cheque (subject to realization of cheque), Demand Draft at Branch Office. The DD and cheques or Money Order may be sent by post. You can pay your premiums at any of our Branches as 99% of  our Branches are networked. Many Banks do accept standing instructions to remit the premiums. So by providing a standing instruction to your Bank to debit your account for the premium amount and send it vide a banker’s cheque to LIC, on the due dates and months mentioned on your policy bond. Through Internet : Payment of premiums can be made through Internet through Service Providers viz.HDFC Bank, ICICI Bank, Times of Money, Bill Junction, UTI Bank, Bank of  Punjab, Citibank, Corporation Bank, Federal Bank and BillDesk.

Gaurav Kumar Gupta BML/01/14

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Premium payment can also be made through ATMs of  Corporation Bank and UTI Bank. Premium payment can also be made through Electronic Clearing Service (ECS) which has been launched at Mumbai, Hyderabad, Chennai, Kolkata, New Delhi, Kanpur, Bangalore, Vijaywada, Patna, Jaipur, Chandigarh, Trivandrum. A policyholder having an account in any Bank which is a Member of the local Clearing House can opt for ECS debit to pay premiums. The policyholders wishing to use this system would have to fill up a Mandate Form available available at our Branches/DO Branches/DO and get it certified by the Bank. The certified Mandate Forms are to be submitted to our BO/DO.

Policy can be anywhere in India: •

Citibank Kiosks at Industrial Assurance Building, Church gate, New India Building, Santa Cruz, Jeevan Shikha Building, Borivili are dedicated for collection of premiums through cheques.

Policy Status – Where Available Status of your policy indicates if your policy is in force or has lapsed due to non-payment of premium. It also provides other important information with respect to your policy, policy, for your reference. The status of your policy is available at the branch that services your policies. It is also available through our Interactive Voice Response Systems in select cities In cities connected by our computerized networks the status will be available in any of the branches. branches. Now the policy status of policies being serviced in the cities connected by network are also available through Internet In select Gaurav Kumar Gupta BML/01/14

cities online touch screen kiosks are also provided where you can view your policy status.

Revival of Lapsed Policies If your policy has lapsed due to non-payment of premiums within the due date, the terms and conditions of the policy contract are rendered void, till you revive your policy. A lapsed policy has to be revived re vived by payment of the accumulated premiums with interest as well as giving the health requirements as required. Always keep your policy in force to ensure that your family gets their financial protection assured by your policy. However certain concessions dependent on the term for which you have paid the premiums are available with the exception of some plans for claims concession

Availing Loans on Policies Many of our plans are of endowment type and you would be allowed to raise a loan against your policy should you require funds. You repay the loan with interest or continue paying the interest and allow the loan to be deducted at the time of the claim payments. Further loans on policies are also allowed after deduction of earlier out standings Most financial institutions too allow loans against LIC policies based on the value LIC quotes on request from you.

Surrender Value This is the value which is the amount payable to you should you decide to discontinue the policy and encash the same from LIC. Surrender value is payable only after three full years premiums are paid to LIC. More over if it is a participating policy the Bonus get attached to it as per prevalent rules. Surrender of policy is not recommended since the surrender value would always be proportionately low. Should you decide to go in for insurance at this stage further insurance would be available to you at a much higher premium because your age would have advanced since taking out the earlier policy. Gaurav Kumar Gupta BML/01/14

Therefore retention of earlier policies and continuation of all policies without allowing them to lapse is the best strategy for continuing life insurance protection.

Maturity, Survival Benefits, Disability And Death Claims: When your Survival Benefits (For Money back policies) or maturity benefits are due, we send intimations to you in advance. However, if  the survival benefit amount is less than or equal to Rs.60, 000/- the same will be sent to you directly without policy or discharge forms with a few exceptions. If such intimations have not come to you before the due date kindly inform us so that we may take necessary action

Policies Under Salary Savings Scheme If you have taken your policy under salary Saving Scheme please read the following suggestions: suggestions: 1. For each each Salary Savings Scheme Scheme Policy Policy your employer deducts deducts the premium from your salary and sends a consolidated cheque for all the policies of the employees to a designated Branch of LIC, where all the policy files are maintained. 2. You can find find out which Branch Branch of of LIC your your policy file will be serviced either from your Agent or from the pay roll department of your employer. 3. You will need to know which branch of of LIC services your policy policy because you will require their help in getting your Maturity/Survival Maturity/Survival Benefits, for any alterations like change of  address and for availing loans etc. 4. In case case you are in a transfe transferab rable le job please please inform inform the designated Branch of LIC about your new place of posting. After you join your new place of posting please ask your employer the LIC Branch where the premiums are being remitted by your office there and inform the LIC Branch which was servicing you earlier so that your policy files can be transferred. 5. This way your records records will never be at correct place and will receive the services from us like maturity, maturity, in time. In case you are leaving your employer for a new job or joining another firm, you have the facility to either continue the Gaurav Kumar Gupta BML/01/14

policy under the Salary Savings Scheme of your new firm or to convert the payment mode into quarterly, half yearly or yearly mode. 6. Always ensure the continuity of premium payments to avoid avoid frequent revivals of policy. This may become a cumbersome process for a person who is in a transferable transferable job. Your 7. Please do not send any installments directly to us. Your premium must come through your employer only. We do not have systems to adjust single installments received from our policy holders. Otherwise please convert the mode into quarterly, half yearly, or yearly and pay directly. This way you also get a discount on the premium payable. 8. Leave Leave a permanent permanent local local address address with with us so that that we can reach reach you wherever you are even after many years.

Disclaimer: The information contained herein is only to guide you and does not purport to be binding on either party. party. The contractual contractual implications of  your yo ur poli policy cy will will be subj subjec ectt to the the term terms s and and co cond ndit itio ions ns of yo your ur proposal and the policy document issued to you. They may be also subject to the rules and regulations of the corporation notified from time to time which may be subject to revision and change. The contract will also be subject to the prevailing laws of the country.

Helpline To ensure that you get the best out of your policy please read our guidelines carefully. 1. Keep the policy bond safe. It will be required at the time of 

maturity or Survival Benefit. You You will also require it if you are availing a loan or want to assign your policy. 2. Inform your your spouse/Parents spouse/Parents/Children /Children as as to where the policy is kept. 3. When you you shift residenc residences, es, please please inform the new addres address s to us. Otherwise any communication we send to you, like premium notices, discharge vouchers, etc., will get delayed in reaching you. 4. Ensure Ensure that the nominees nominees name name is correctly correctly incorpor incorporated ated in the policy bond.

Gaurav Kumar Gupta BML/01/14

5. Remember Remember to pay pay your your premium premium in time, even even if our notices notices do not reach you. There may be a postal delay. The months in which premium are due are given in the Policy bond. 6. You may pay the premium by Cheque, DD or Money Order. Remember to quote the policy number every time in your correspondence. The policy number is consisting of nine digits and can be found at the top left hand corner of the policy bond. 7. Check your your policy policy bond bond and see if your your date date of birth is correctly given therein. 8. In case you are handing over over the policy policy bond bond to any any person or office, including the LIC office please take a written acknowledgement. 9. When your your Survival Survival Benefits Benefits (For (For Money Money back policies) or or maturity benefits are due, we send intimations to your three months in advance. If such intimations have not come to your even within one month of the due date kindly inform us so that we may take necessary action. 10.When in doubt call your agent or the Branch from where you took the policy. Our Branches are our Operating Units. Hence, for any servicing matter, contact the Servicing Branch of your policy. However, for obtaining general information, you can contact any of the Branches of LIC.

Claim’s Claim’s Settlement’s History

MUMBAI: The percentage of rejected claims to total claims is much higher for private life insurance companies compared with state-owned Life Insurance Corporation (LIC). According to data released by the Insurance Regulatory and Development Authority Authority (IRDA), private life insurers received 13,139 individual death claims in 2006-07 compared with 6.02 lakh claims recorded by LIC. Of the total number of claims received, private life insurance companies settled 72.7% of the claims, while LIC managed to settle 96.94% of claims. The number of claims rejected by private insurers as a percentage of claims booked was 13.98% in 2006-07, while the claims rejected by LIC were 1.43%. Claims pending with private insurers Gaurav Kumar Gupta BML/01/14

as on March 31, 2007 stood at 13.32% of total claims received against 1.63% for LIC. LIC paid Rs 4289.28 crore as death claim benefits against Rs 155.46 crore paid by b y private life insurers. Life insurers receive two types of claim, the first are the maturity claims where the policyholder gets the savings that accrue under  his policy at the end of the term. Bulk of the claims comes under  this category, category, and usually usuall y there is no dispute on maturity claims, as these payments are akin to repayment repa yment of a maturing bond. The second set of claims, which are far fewer, fewer, are death claims. Section 45 IA of the Insurance Act 1938 allows insurers to reject claims if there is suppression of material fact by the insured. In life insurance, insurance, any information that has bearing on the mortality of the proposer is considered to be a material fact. So, if a proposer  suffers from a serious ailment which is not disclosed, the insurer  can reject his claims. However, However, the Supreme Court has said that the clause cannot be used unilaterally and it is for the insurer to establish that the nondisclosure has a bearing on mortality. mortality. In the first few years of  operations, private life insurers did not have much of a claims experience. Therefore, a comparison on claims servicing between the private sector and LIC was not possible. Now, Now, with the private life industry being in its seventh year, there has been a substantial number of maturity and death claims. According to an official with a private life insurance company compan y, repudiations were higher in group g roup policies. Also, given that private companies have been only a few years in existence, their share of  early claims are higher. Early claims are those which occur within two years of the policyholder acquiring a policy. In such claims, insurers double check on whether the terms of the policy have been strictly met. Another aspect of claims Admission Of Age:

Age Age is the the main ain basi basis s of calcu alcula lattion ion of prem premiium unde underr life life insurance policies. The following are accepted as evidence of age:

Gaurav Kumar Gupta BML/01/14

•

•

•

•

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Cert Certif ifie ied d extr extrac actt from from Muni Munici cipa pall or Loca Locall Body Body’s ’s reco record rds s made at the time of birth. Certificate of Baptism or Certified Extract from Family Bible, if it contains age or date of birth. Certified Extract from School or College records, if age or  date of birth is stated therein. Certified Extract from Service Register in the case of Govt. employees and employees of Quasi-Govt. Institutions or  Passport issued by the Passport Authorities Authorities in India.

Payment of Premium: •

•

•

•

•

•

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By cash, local cheque (subject to realization of cheque), Demand Draft at Branch Office. The DD and cheques or Money Order may be sent by post. You can pay your premiums at any of our Branches as 99% of our Branches are networked. Many Banks do accept standing instructions to remit the premiu premiums. ms. So by provid providing ing a standi standing ng instr instruct uction ion to your  your  Bank to debit your account for the premium amount and send it vide a banker’s cheque to LIC, on the due dates and months mentioned on your policy bond. Thro Throug ugh h Inte Intern rnet et : Pay Payment ment of prem premiu iums ms can can be made made through Internet through Service Providers viz.HDFC Bank, ICICI Bank, Times of Money, Money, Bill Junction, UTI Bank, Bank of  Punj Punjab ab,, Citi Citiba bank nk,, Corp Corpor orat atio ion n Bank Bank,, Fede Federa rall Bank Bank and and BillDesk. Prem Premiu ium m paym paymen entt can can also also be made made thro throug ugh h ATMs TMs of  Corporation Bank and UTI Bank. Prem Premiu ium m payme payment nt can can also also be made made thro throug ugh h Elec Electr tron onic ic Clea Cleari ring ng Ser Service vice (ECS ECS) whic which h has been een launc aunche hed d at Mumbai, Hyderabad, Chennai, Kolkata, New Delhi, Kanpur, Bang Bangal alor ore, e, Vijay ijay Wada, da, Patn atna, Jaip Jaipur ur,, Chan Chandi diga garh rh,, Trivandrum, Ahmedabad, Pune, Goa and Nagpur, Secunderabad & Visakhapatnam. A policyholder having an account in any Bank which is a Member of the local Clearing House can opt for ECS debit to pay premiums ums. The policyholders wishing to use this system would have to fill up a Mandate Form available at our Branches/DO and get it certified by the Bank. The certified Mandate Forms are to be submitted to our BO/DO. Policy can be anywhere in India. Gaurav Kumar Gupta BML/01/14

•

Citibank Kiosks at Industrial Assurance Assurance Building, Churchgate, New Indi India a Buil Buildi ding ng,, Sant Santac acru ruz, z, Jeev Jeevan an Shik Shikha ha Buil Buildi ding ng,, Borivi Borivilili are dedica dedicated ted for collec collecti tion on of premiu premiums ms throug through h cheques.

Days Of Grace: •

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Poli Policy cyho hold lder er shoul hould d pay pay the prem premiu ium ms on due due dates ates.. However, a grace period of one month but not less than 30 days will be allowed for payment of yearly/halfyearly/ ly/quarterly premiums and 15 days ays for monthly premiums. When the days of grace expire on a Sunday or a public holiday, the premium may be paid on the following working day to keep the policy in force. If the premium is not paid before the expiry of the days of  grace, the policy lapses.

Revival of Lapsed Policy: •

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If the policy has lapsed, it can be revived during the life time of the life assured, within a period of five years from the date of the first unpaid premium but before the date of maturity subject to certain conditions. The Corporation offers three convenient schemes of revival viz. viz.,, Ordi Ordina nary ry Revi Reviva val, l, Spec Specia iall Revi Reviva vall and and Inst Instal allm lmen entt Revi Reviva val. l. Poli Polici cies es can can also also be revi revive ved d unde underr Loan Loan-c -cum um-Revival and SB-cum-Revival schemes. Requ Reques estt for for revi reviva vall may may be made made to the Bran Branch ch Offi Office ce servicing the policy.

Change of Address and Transfer Of Policy Records: •

•

The policyholder should immediately intimate the change of  his/her address to the Branch Office servicing the policy. policy. The corr correc ectt addr addres ess s faci facililita tate tes s bett better er serv servic ice e and and quic quicke ker  r  settlement of claims. Poli Policy cy reco record rds s can can also also be tran transf sfer erre red d from from one one Bran Branch ch Office to another for servicing, as requested by the policyholder.

Loss of Policy Document: Gaurav Kumar Gupta BML/01/14

•

•

The Policy Document is an evidence of the contract between the Insurer and the Insured. Hence the policyholder should preserve the Policy Bond till the contracted amount under it is settled. Loss Loss of the Poli Policy cy Docum ocumen entt shou shoulld be immed mmedia iattely ely intimated to the Branch Office where it is serviced.

Loans: •

•

Loan Loans s are are gran grante ted d on poli polici cies es to the the exte extent nt of 90% 90% of  Surrender Value Value of the policies which are in force and 85% of  the Surrender Value in case of policies which are paid-up, inclusive of the cash value of bonus. The rate of interest charged at present is 9% p.a. payable half-yearly. half-yearly. Loans are not granted for a period shorter than six months. The Conditions and Privileges printed on the back of the Poli Policy cy Bond Bond stat states es whet whethe herr a part partic icul ular ar poli policy cy is with with or  without the loan facility.

Relief to Policyholders: •

The Corporation generally allows concessions on payment pa yment of  premiums, settlement of claims, issue of duplicate policies, etc when the policyholder are affected by natural calamities such as droughts, cyclones, floods, earthquakes, etc.

Nomination:

Nomination is a right conferred on the holder of a Policy of Life Assurance on his own life to appoint a person/s to receive policy moneys in the event of the policy becoming a claim by the assured’s death. The Nominee does not get any other benefit except to receive the policy moneys on the death of the Life Assured. Survival Benefit/Maturity Claims: •

•

LIC settles survival benefit/maturity claims on or before the due date. Policyholder are intimated well in advance by the Branch Office which services the policy regarding the payment, and the necessary Discharge Voucher is also sent for execution by the assured. In case the policyholder does not get any Gaurav Kumar Gupta BML/01/14

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intimation from the Branch Office concerned, he/she should contact them, quoting the Policy Number. Survival Benefit payment up to Rs.60,000/- are settled without insisting for Policy Bond and Discharge Voucher. Voucher.

Death Claims: •

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If the life assured dies during the term of the policy, death clai claim m aris arises es.. The The deat death h of the the poli policy cyho hold lder er shou should ld be immediately intimated in writing to the Branch Office where the policy is serviced along with the following particulars: 1. The No./ No./s s of the the policy policy/ie /ies s 2. The name name of of the policyh policyhold older  er  3. Death Certi Certificat ficate e issued by concern concerned ed Authority Authority 4. The The dat date e of of dea death th 5. The cause cause of of deat death h and and 6. Claimant’ Claimant’s s relations relationship hip with with the decease deceased d On receipt of the intimation intimation of death, death, necessary claim forms are are sent sent by the the Bran Branch ch Offi Office ce for for compl complet etio ion n alon along g with with instructions regarding the procedure to be followed by the claimant. The claims which have arisen after a period of three years are treated as non-early claims and settled within 30 days from the date of receipt of all requirements. The claims that have arisen within a period of two years from the date of commencement of the policy, are treated as early claims and investigation is compulsory in such cases. The claim is usually usually payable to the nominee/assig nominee/assignee nee or the legal heirs, as the case may be. However, if the deceased poli policy cyho hold lder er has has not not nomi nomina nate ted/ d/as assi sign gned ed the the poli policy cy or if  he/s he/she he has has not not made made a suit suitab able le prov provis isio ion n rega regard rdin ing g the the policy moneys by way of a Will, the claim is payable to the holder of a Succession Certificate or some such evidence of  title from a Court of Law. The Corpor Corporati ation on grant grants s claims claims concess concession ions s under under certai certain n Plans whereby payment of full sum assured is made, subject to the deduction of unpaid premiums with interest till the date of death and unpaid premiums falling due before the next anniversary of the policy, policy, in the event of the death of the life

Assured within a period of six months or one year from the date of the first unpaid premium, provided premiums have been paid for at least three years and five years respectively. respectively. Gaurav Kumar Gupta BML/01/14

Claim Review Committee:

The Corporation settles a large number of Death Claims every year year.. Only Only in case case of frau fraudu dule lent nt supp suppre ress ssio ion n of mate materi rial al information is the liability repudiated. This is to ensure that claims are not paid to fraudulent persons at the cost of honest policy policyhol holder ders. s. The number number of Death Death Claims Claims repudi repudiate ated d is, however, very small. Even in these cases, an opportunity is given to the claimant to make a representation for  consideration by the Review Committees of the Zonal office and the Central Office. As a result of such review, depending on the merits of each case, appropriate decisions are taken. The The Clai Claims ms Revi Review ew Commi Committ ttee ees s of the the Cent Centra rall and and Zona Zonall Offices have among their Members, a retired High Cour Courtt/Dis /Disttrict rict Cour ourt Judg Judge. e. This This has has helpe elped d prov provid idin ing g tran transp spar aren ency cy and and conf confid iden ence ce in our our oper operat atio ions ns and and has has resulted in greater satisfaction among claimants, policyholders and public.

Network of LIC

All Life Insurance Corporation branches in the country would be interconnected under Metro Area Network (MAN) inaugurated here on Thursday. Speaking at the function, K Vaidyalingam, Vaidyalingam, LIC southern zonal manager, manager, said about 1500 branches would be getting covered under MAN in which the premium amount of the policy holder  could be remitted in any branch. Besides, the policy p olicy holder gets his status report, policy position, revival and quotation from the network. In every one hour the system s ystem got upgraded, he said. In southern region there are about 10 lakh new policy holders with a business of Rs 6500 crore. About settlement of claims, 92 per  cent of policies were settled on or before maturity, maturity, he said, adding, Gaurav Kumar Gupta BML/01/14

LIC was in a better position and 100 per cent connectivity was taking place. Kottayam stood third in premium collection during the period between April April to August 2002, the first being Kozhikode and Thiruvananthapuram in second position in southern region. The premium amount collected in 2001 was Rs.74,000 crore through 2.32 crore new policies by 8.2 lakh agents. LIC has introduced a new group insurance scheme for Corporation Bank deposit holders.

INTERNATIONAL OPERA O PERATIONS/ASSOC TIONS/ASSOCIA IATES TES LIC LIC has has alwa always ys ackn acknow owle ledg dged ed the the need need to expa expand nd.. Ou Our r expa expand nding ing effo effort rts s have have been been cons consis iste tent nt and and are are evid eviden entt though our associations given below for your reference.

INTERNATIONAL OPERATIONS

     

LIC Fiji LIC Mauritius LIC United Kingdom

LIC (International) B.S.C (C), Bahrain LIC (Nepal) Ltd LIC (Lanka) Ltd Gaurav Kumar Gupta BML/01/14



Saudi Indian Company for Co-op. Insurance, KSA.



LIC Mauritius Offshore Ltd.



LIC Co-ordinating Office in India

ASSOCIATES 

LIC Housing Finance Ltd.



LICHLF Care Homes Ltd.



LIC Mutual Fund AMC Ltd.

Benefit offered to Customer’s LIC the best-known Indian brand: Chidambaram

Gaurav Kumar Gupta BML/01/14

FROM STRENGTH TO STRENGTH: Union Finance Minister P. Chidambaram launching LIC’s web portal in Chennai on Tuesday. Others from left are D.K. Mehotra, Managing Director, LIC, and A.K. Shukla, Chairman. — Photo: Shaju John

CHENNAI: Describing Life Insurance Corporation of India as the best-known Indian brand, Union Finance Minister P. P. Chidambaram, said on Tuesday that even after the opening up of the insurance sector to private firms, the Corporation remained the market leader. Launching LIC's e-portal here, he said the Corporation "supported us (government) when we opened up insurance because it was confident of doing better in a competitive environment. LIC continues to be the market leader with 88 per cent market share of  new policies and 78 per cent of premium. It is clearly recognised as the market leader." leader."

Gaurav Kumar Gupta BML/01/14

The e-portal (licindia.com) will provide information on policy status, bonus, premium payment, loans and change of address. a ddress. It will facilitate online payment of premium and has details of the doctors and agents. It also a lso has a branch locator and `maturity alert' facility. The objective is to provide world-class service. Noting that the State-owned Corporation utilised information technology in its relentless effort to remain the leader, Mr. Mr. Chidambaram said: "My goal is to make LIC a world class insurance company. company. It is nearly world class now." All 2,048 branches of LIC, which had been adjudged the best user of IT by NASSCOM, were fully automated. Barring ten, all the branches were networked. Mr. Mr. Chidambaram said the e-portal was another example of LIC's constant innovation using information technology. Some of the multi-interfaces it offered to customers included call centres, IVRS, SMS and satellite branches. Bonus rates

Announcing the bonus rates on LIC policies, Mr. Mr. Chidambaram said on Whole Life policies it would be Rs. 71 (per Rs. 1,000 sum assured). On endowment policies the bonus ranges from Rs. 34 to Rs. 50. It will be between Rs. 32 and Rs. 45 on money-back mone y-back policies. The bonus for Jeevan Dhara and Jeevan Suraksha schemes has been enhanced and the terminal bonus retained at last year's level. The bonus is in addition to the special s pecial bonus announced during the golden jubilee celebrations of LIC in September. September. LIC Chairman A.K. Shukla said the Corporation catered to 18 crore policy holders and the size of the life fund had crossed Rs. 3.85 lakh crores. Stating that LIC believed in deploying the latest technology for the benefit of all concerned, he said the portal would enable customers to access a range of services from the comfort of their home. K. Sridhar, managing director of LIC, said: "Better servicing alone can give us new business."

Gaurav Kumar Gupta BML/01/14

Why LIC is trusted brand of India? 1. As a Govt of India India owned Company Company,, LIC is 51 + years years old in the field of life insurance and money management. LIC's Life Fund size as on day is more than Rs 5 Lakh Thousand Crores ! 2. Any LIC policyholder or the nominee will vouch for the best clai claims ms set settlem lement ent from rom LIC LIC. Perha erhaps ps,, this his is the only only institution where you as a policyholder are virtually chased till such time your claim cheques is handed over to you ! 3. LIC has won `NDTV Profit Leadership Award 2007 under  Life Insurance Category', `Outlook Money Award 2007 as the best Life Insurer', `CNBC Awaaz Consumer Award 2007 2007 as the the best best Life Life Insu Insura ranc nce e Comp Compan any y', `Golden Peacock Award for excellence in Corporate Governence 2007', `Web 18 Genius of the Web Award 2007 and many more'. 4. 5.

LIC adjudg adjudged ed No.1 the 4th 4th No.1 Trusted rusted Servic Service e Brand Brand for the successive year by ET Brand Equity Survey. LIC has been adjudged Superbrand India for 2004-06 and Reader's

Digest

`Trusted

Brand'

Asia

2007.

6. This is the the only corporat corporation ion that is is catering catering to more more than 190 million satisfied policyh cyholders in India and abroad. 7. This This is one one of the the very very few few inst instit itut utio ions ns that that pays pays exgratia interest on pending maturity claims !

8. More More than 2050 LIC branch branches es all over India India are connected connected together to serve you. You can pay your premium anywhere in the country. 9. Dur During ing its long long exi existen stence ce,, LIC LIC has has kept kept on upda updatting ing its its port portfo folilio o by brin bringi ging ng in new new plan plans s depe depend ndin ing g on publ public ic requirement. More than 50 of them are most popular and can be customized to meet any of your requirements. LIC ULIPs have become extremely popular due to the returns they offer. Money Plus- latest LIC Unit Linked Plan is a case in point. 10. All

LIC Plans come with Sovereign Guarantee i.e., Govt of India India Guaran Guarantee tee regard regarding ing repaym repayment ent.. Infact Infact,, as of  now, only LIC plans enjoy this Govt ovt Guaran rantee tee. Gaurav Kumar Gupta BML/01/14

Beneficiary for this Sovereign Guarantee is you and you alone as the policyholder/ would-be policyholder .

11.All LIC plans are characterized by low premium, high life insurance coverage and a vast package of benefits offered by them them.. Add Add to this this pack packag age, e, sect sectio ion n 80C 80C bene benefi fitt and and section 10(10D) benefit on the maturity proceeds, you will find find inve invest stme ment nt on LIC LIC plan plans s one one of the the most most cove covete ted d investment options available to you. 12.Premium paid under Key-M ey-Ma an Insur surance plan is a reco recogn gniz ized ed busi busine ness ss expe expens nse e unde underr sect sectio ion n 37(I 37(I)) of the the Income-Tax Act. For companies making profits, this is a very good incentive indeed. 13.Thr 13.Throug ough h Employ Employerer-Emp Employ loyee ee Insura Insurance nce scheme scheme,, you can recognize the worth of your most valuable employees whose absence you can ill afford to loose. 14.E 14.Ent ntir ire e cont contri ribu buti tion on to LIC LIC Grou Group p Grat Gratui uity ty Sche Scheme me is a recognized business expense in the hands of the employer. In addition, through this scheme, the employer can transfer  his gratuity liability to the corporation and fund the same under cash accumulation scheme. The most popular among all the companies. 15. LIC is declaring quite an impressive bonus (profits) on all its with-profits policies every year. Extra attraction under LIC Bonus is (a) it is calculated every ever y year on the insured amount and not on the premium paid and (b) entire bonus received received along with insured amount either by you on maturity of your  policy(ies) or by your nominee in your absence during the currency of your policy(ies) is free from income-tax under  section 10(10D) of the Income-tax Act. 16.On most of the LIC plans, you can borrow to take care of  your immediate monetary requirements. None of the policy benefits get affected as a result of borrowal. Infact, policy loans offer one of the most attractive investment opportunities. 17. You can can pay pay your our prem remium ium 3 year ears in adva advanc nce e at 5% disc discou ount nt.. Chie Chieff attr attrac acti tion ons s of this this adva advanc nce e pay payment ment of  premium are (a) there is no possibility of your overlooking your premium payment and getting your policy(ies) lapsed wherever you are in the world and (b) you will be earning 5% tax-free interest on the unutilized portion of the amount left with LIC after apportioning the regular installment.

Gaurav Kumar Gupta BML/01/14

18.Most of the LIC plans come with Riders to take care of Total and Permanent Disablement due to Accident and some of  the most dread diseases that may result in loss of income. 19.L 19.LIC IC pens pensio ion n plan plans s that that guar guaran ante tee e you you life life pens pensio ion n are are extremely popular. You can park your hard earned money safely with the corporation and enjoy pension as long as you are alive.

Due Due to thes these e reas reason ons s and and lot lot more more,, LIC LIC shou should ld be your  your  obvi obviou ous s choi choice ce for for all all your your life life insu insura ranc nce e requ requir irem emen ents ts..

LIC LIC is Indi India’ a’s s most most trus truste ted d bran brand, d, INSU INSURI RING NG LIVE LIVES S AND from more than 50 Years. ENSURING SMILES SUPER BRAND & MOST TRUSTED SERVICE BRAND OF INDIA. BEST IT USER IN INDIA (NASSCOM – 2003). Largest Institutional Investor in India and Second largest in Asia among insurers. (Source: Asian Investor) LIC - An Institution Builder promoting many financial and insurance inst instit itut utes es like like NSE, NSE, NCDE NCDEX, X, LIC LIC Mutu Mutual al Fund Fund,, Stoc Stock k Hold Holdin ing g Corpor Corporati ation on of India, India, Nation National al Insura Insurance nce Academy Academy,, Insura Insurance nce Institute of India etc. LIC is the largest life insurer of India Asset value as on 31.3.2004: 3,673,598.4 mn (INR). Offers over 45 plans to cov cover your our life at various stages Over Over 160 160 mill milliion cust custom omer ers s and and 1.1 1.1 mill illion ion agen agents ts.. It has has underwritten more than 160 million policies. 2,04 2,048 8 bran branch ch offi office ces s (all all comp comput uter eriized) zed) of which hich 2019 2019 are are networked ”From all above we can say our money is safe and secure with assured returns.” returns.”

Gaurav Kumar Gupta BML/01/14

Project Analysis

The Positive side of LIC as well as Negative side of LIC. I encourage other readers to correct me if I am wrong and also add light to any point that I may have missed. First let’s talk about the Positive side of LIC 1. LIC is owned by the government and therefore it is the only company besides the PPF that has the sovereign guarantee of the govt. of India. It is a different different story that today LIC has become so powerful that the govt. leans on LIC every ever y time that the Stock Market crashes. Imagine having an Asset base of over Rs 6 Lac Crore. . That’s That’s a 14 digit number! No company in India can boast of such figures. Mind boggling. 2. LIC is the only Life Insurance Company making profits. Most of  the Private Insurers including the self proclaimed market leaders like ICICI and Bajaj Allianz are booking heavy losses. Check IRDA website in the Annual Report column. The point is that if an insurance company makes losses year over year, year, then how will they manage to pay the Claim amount? Afterall Afterall no Insurance company is here to do charity c harity business. 3. When it comes to paying pa ying claims, again LIC is Number One with the claims settlement ratio of more than 99%. Private Insurers cannot match LIC’s ability on claims settlement. Again, please visit IrDA’s IrDA’s website to see the claims settlement performance of various companies. 4. LIC has the world’s largest sales force, yes over 10 lac agents and now universities in western countries are trying to study stud y how a company managed to appoint such a large sales force. A sales sales force of over 1 million! Truly Truly a remarkable achievement. Gaurav Kumar Gupta BML/01/14

5. Many people argue that LIC has not been able to penetrate the market as it has insured only 15% of the population. My point is, in a poor country like India where there are so s o many people living below the poverty line, so many people who die of starvation, so many people who don’t have access to basic medication, so many people who don’t have basic necessities of life like food, shelter, education and clothing. Will such a person first feed his children or  buy Insurance ? Lets not forget that a majority of the Indian population is poor and a substantial percentage is living below the poverty line. At a personal level i feel that LIC has done a satisfactory job of insuring people.

# NOW THE NEGATI NEGATIVE VE POINTS POIN TS OF LIC #  1. The Administrative staff in LIC is in deep slumber. slumber. Try writing a complaint to them and they wont even bother to reply back. If you ask the Branch Manager for the complaints book, he probably wont have it in place. If an Agent complains against any staff, then the Agent is black listed and next time onwards his work is not done. 2. In order to show a better performance & achieve branch Targets, Targets, Agents are motivated by the Managers to split sp lit the policies. This not only adds to the inconvinience of the policyholders but it also increases the expenses of LIC. Competitions for Agents are held with Prizes being offered on the number of policies sold and not on the number of lives insured. Therefore many Agents are tempted to split the policies in order to get better prizes. However if  an agent wants the forms or sales literature, most of the time its out of stock. But surprisingly just a week before any scheme is about to close, the office is flooded with forms & sales literature. This is very disturbing. 3, As I earlier said, LIC is lacking in Effective Leadership in recent times. Managers having designations like Marketing Manager or  Sales Manager donot have the capability to motivate an audience at a meeting. Yes Yes this is true even in a city like Mumbai. Even the Senior level managers cannot make effective presentations or  design a sales strategy. strategy. Their only mantra at an a n Agents meeting is "Friends, bring more policies!’. If you ask them how to bring more policies, they wont know. Its a pity ! Gaurav Kumar Gupta BML/01/14

4. Though LIC has more than 2000 branches, they are not systematically located. In Mumbai’s Fort area, LIC has more than 20 branches within a radius of 1.5kms. 1.5k ms. Whats the use ? In the suburbs where most of the people reside, there are no branches at all. LIC has no branches in Bandra East, Khar East & West, Santacruz East, Vile Parle East, Andheri West, Jogeshwari West, Mahim, Matunga, etc. If LIC gives a thought to systematic s ystematic relocation of its offices, it will immensly help the policyholders. 5. Even though LIC claims to have taken several initiatives in the IT sector, sector, policyholders still face face problems in revival of their  policies, payment of premium in several branches, change of  mode, change of address, etc. The After-sales policy services department needs to be revamped. Policyholders feel that LIC agents are humble while selling a policy and thereafter they fail to provide any service to the client. The truth is that LIC is so weak in policy services department, that even a good agent finds it difficult to get the work done from the administrative staff. staff. To sum up, i would say that LIC will never cheat a Policyholder in payment of claim, but at the same time everyone will agree that LIC is not responsive to the needs of the customer. If you have purchased an LIC policies then dont forget to pay the premium on time, and when your policy gets matured LIC will honestly honestl y pay your  Maturity amount on time. The employees are sometimes rude in their behaviour with the Policyholder. Policyholder. If a claim cheques is handed over by a courteous and smiling employee of LIC, it will enhance the image of LIC L IC in the mind of the policyholder. Today LIC is not just an Insurance Company, Company, LIC is a Movement, LIC is a Cult, LIC is a Religion. Imagine 10 lac agents and 1 lac employees serving 16 crore policyholders in India. You You cannot deny that LIC has become the way of life in India. Daily you can hear someone or the other talking of LIC in local trains, at fish markets, at restaurants, on News Channels, in your own offices, etc. As i earlier said, LIC has started lacking in effective leadership. If a company like LIC starts sponsoring irrelevant awards like Zee Cine awards which it had done 2 years ago, then it will send the wrong message in the minds of the policyholders. Imagine India’s most Gaurav Kumar Gupta BML/01/14

famous institution sponsoring a Cine Awards function stating that it was done to increase the brand awareness of LIC. That sounded like a big joke. It is time that the top level officials of LIC come out of their air-conditioned cabins and travel by public transport for  sometime in order to feel the pulse of the common man.

Conclusion

After Finding’s we can see about LIC features and his The tendency to take the the expe expedi dien entt appr approa oach ch and and focu focus s on the the far far right right of the the LIC LIC spec spectru trum, m, Peacet Peacetime ime Contin Contingen gency cy Operat Operation ions s and and conduc conductt traini training ng as usual, usual, while while briefing that the LIC block has been checked, will lead us to a possibly fatal false sense of security. Inst Instin inct ctive ive beha behavi vior or and and ingr ingrai aine ned d trai traini ning ng must must be adju adjust sted ed to fit new new circumstances. STXs must be developed locally or borrowed from units who have already been through the training. tr aining. The probability of becoming involved in a LIC operation is high. The potential to attract international attention, even with limited forces, is also great. Units have have demo demons nstr trat ated ed that that with with a bala balanc nced ed trai traini ning ng focu focus s and and prop proper  er  preparation, many pitfalls outlined above can be avoided. LIC is not conventional warfare. This is critical for the counterinsurgent to understand. The insurgent’s violent and coercive strategy is applied so as to achi achiev eve e poli politic tical al,, civi civil, l, mili milita tary ry and and psyc psycho holo logi gica call resu result lts. s. Henc Hence, e, the the counterinsurgent must counter all of these strategic elements individually. In Gaurav Kumar Gupta BML/01/14

addition, the target of the insurgent’s violence and coercion is the population. This is because the population is the centre of gravity in LIC. Therefore the counterinsurgent must also focus on the population to be successful. In terms of milita itary principl iples in counterin rinsurge rgency, cy, doctrinal precision, professionalism, independence, initiative, force precision, restraint, combined arms arms,, prec precis isio ion n enga engage geme ment nt,, join jointt forc force, e, effe effect ctiv ive e popu popula lati tion on base based d intelligenc intelligence, e, integrated integrated communi communicatio cations, ns, a civil affairs approach approach and high levels of training are critical. So we can can say say that that so many any meri merit’ t’s s and and Deme Demeri rit’ t’s s in life life insu insura ranc nce e Corporation of India.

BIBLIOGRAPHY  Books 

CMIE Database programming with MS Office,



MS office,



Visual vmpro software (Lic)

Important websites – 

www.google.com



www.licindia.com

Magazine   Yogkshem

–Lic Magazine



Outlook Express



Business today



Finance & Banking Gaurav Kumar Gupta BML/01/14



Money Outlook

News Paper 

Business standard

  Times

of India



Economic times



Hindustan times

LIMITATION OF THE PROJECT

Lic has been so many limitations -----

A.

A Dealer is not required to obtain the seller’s identification, photograph the seller, record the seller’s thumbprint, or have the seller complete the Declaration of Proof of Ownership if the Dealer complies with the remaining requirements in the Administrative Rules and if: 1. The item is acquired through consignment by a Dealer from a person who lives more than 150 miles from the City of Portland and the consigned property is mailed, shipped, or sent by courier to the Dealer. 2. The item is acquired during a trade show. All items acquired during a trade show by a Dealer must be reported. At the time of  Gaurav Kumar Gupta BML/01/14

the transaction, the Dealer must write on the transaction report a complete, legible and accurate description of the regulated property of sufficient detail to distinguish like objects one from the other. The Dealer must also record the name and date of the event and the address of the venue in the name, date, and address fields of the transaction transaction report form. Items acquired during a trade show may be sold or traded during the trade show without being held. Items still in a Dealer’s possession at the end of the show will be subject to the hold period requirement in effect for that Dealer’s acquisitions of  regulated property. 3. The item is acquired from a business whose acquisitions acquisitions of  regulated property consist exclusively of donated items and/or purchases from a 501(c)3 organization. The Dealer must record the name and location address of the business in the name and address fields of the transaction report form and the date of the acquisition. 4. The item is acquired through an internet transaction. The Dealer must record on the transaction transaction report the seller’s email address or seller’s identification, the name of the internet website that listed the item, and the date of the acquisition. 5. The item is acquired by the Dealer from a yard sale, garage sale, estate sale or swap meet. The Dealer must record on the transaction transaction report the physical address of the sale location and the date of the acquisition. Items acquired under Subsection A. must be held in compliance with the hold period requirement in effect e ffect for the Dealer’s other acquisitions of regulated property.

B.

A Dealer is not required to obtain the seller’s identification, photograph the seller, record the seller’s thumbprint, or have the seller complete the Declaration of Proof of Ownership if the Dealer complies with the remaining requirements in the Administrative Rules and if the item is used, regulated property acquired from a licensed business. The Dealer must keep a receipt for the item from the licensed business that includes the licensed business’ name and a description of the item. The receipt must be retained at the Dealer’s business location for one year or until the item is sold, whichever is longer. The Dealer must record on the transaction report the name and location address of the business in the name and address fields of the transaction report form, and the date of  the acquisition. The item does not have to be held.

C. A Dealer is not required to make a copy of the acceptable identification obtained from the seller, photograph the seller, or Gaurav Kumar Gupta BML/01/14

record the seller’s thumbprint if the Dealer complies with the following requirements: 1. Conducts each and every acquisition of regulated property by either: a. not tendering payment to the seller for a minimum of 15 days after the regulated property is delivered to the Dealer; or b. offering in-store credit that must be used for merchandise only and not redeemed for cash; and 2. Holds each and every item of regulated property for a minimum of 15 days from the date of acquisition; and 3. Complies with the remaining requirements set forth in the Administrative Administrative Rules; and 4. Notifies the Director and the Chief of Police in writing that each and every acquisition of regulated property will be conducted by not tendering payment to the seller for a minimum of 15 days after the regulated property is delivered to the Dealer. Dealer.

D.

A Dealer is not required to make a copy of the acceptable identification obtained from the seller, photograph the seller, or record the seller’s thumbprint when the Dealer acquires an item of  regulated property on consignment if the Dealer complies with the following requirements: 1. Does not tender payment to the consignor for a minimum of  15 days after the regulated property is delivered to the Dealer; 2. Holds each and every item of consigned regulated property for a minimum of 15 days; 3. Complies Complies with with the remainin remaining g requirements requirements in in the Administrative Administrative Rules.

“So these are the limitation of life insurance Corporation of India. In every company has so many limitation but LIC has limitation but It is no -1 and trusty brand of India.” So we can say that LIC is best service provider  and trusty brand of India.

Gaurav Kumar Gupta BML/01/14

Gaurav Kumar Gupta BML/01/14