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SUMMER TRAINING PROJECT

UNIT LINKED INSURANCE PLANS

Comparative study between LIC&ICICI prudential

Undertaken At

“RELIANCE LIFE INSURANCE CO. LTD”

Submitted in the partial fulfillment of the award of thedegree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted To:prof. Xyz Xyz

Submitted By: Xyzyadav5th sem (morning)(0xyz1707)

SESSION: 2009-2010TECNIA INSTITUTE OF ADVANCED STUDIES(Affiliated to Guru Gobind Singh Indraprastha

University)



DECLARATION

I XYZYADAV Enrolment No- 0xyz1707 Class- BBA 4th semester (morning) of TECNIA INSTITUTE OFADVANCED STUDIES, Delhi hereby declare that the Summer Training Report entitled PORTFOLIO MANAGEMENT

(A comparison between LIFE INSURANCE CORPORATION OFINDIA and ICICI) is an original work and the same has not beensubmitted to any other institute for the award of any other degree. A seminar presentation of the Summer Training Reportwas made on and the suggestion as approved by the facultywere duly incorporated.

Signature of researcher:

Signature of faculty guide:

2



TABLE OF CONTENT

o CHAPTER- 1 Research problem and procedure

Company profile

Industry profile

Introduction

Scope of the study

Objectives of the study

o CHAPTER- 2 Review of literature

o CHAPTER-3 Current scenario

o CHAPTER -4 Research methodology

Research instrument

Limitation of the study

Data analysis & interpretation

o CHAPTER-5 DISCUSSION &FINDINGS OF THESTUDY

Discussion of the result

Findings of the result

3





ZONA LOFFICE:-

LIC’S Zonal Office is located at various zones in India. One of the most important

South Central Zone of LIC is located at Hyderabad (Opposite Secretariat). Zonal

Office is headed by Zonal Manager and his/her team.

LIC’S DIVISIONAL OFFICE:-

LIC’S Divisional Office is the 3rd in the administrative system and it is headed by

person called as “Senior Divisional Manager”. The Senior Divisional Manager head’shis team which is consisting of Divisional Manager and Marketing Managers.

LIC’S BRANCH OFFICE:-

LIC in its administrative setup has got maximum to maximum its branch offices all

over India encounting 2048. The Branch Office is headed by a Branch Manger and in

some of the branches LIC has also the concept of “Chief Manager”. Chief Manager has his team of Development Officers and Agents to do the business

LIC’S WORK FORCE:

At the Administrative Level LIC has a employee force of 2,00,000 at various- variousdesignations. At the Marketing Force LIC works with 12,0,000. Agents and more

than 2,00,000 Development Officers for achieving the LIC’S life insuring target.Appraisals and Promotions are from time to time in this organization.

LIC’S PORTFOLIO:-

LIC’S main initiative was mainly to provide Life Insurance to each and every person

of an Indian Origin. LIC when it comes to Life Insurance has plans on Need level

basis .LIC has conventional plans and non conventional plans.

LIC MF started in the year 1989 on 19th June with a corpus of 2,00,00,000. LIC in the

mutual fund industry has got 20 open ended funds and 25 closed ended funds. LICon Mutual Funds set up has got 4 Independent Directors for running the admin.

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Started in the year 1989 on 19th June.LIC HFL has also started Public Deposit

Schemes. LIC HFL promotes Housing Finance for purchase of apartments or

independent flats. LIC also has share pattern as it invests in housing finance. In the

year 2009 LIC will enter into Venture capital industry. LIC introduced health

insurance in the year 2008 with Health Plus as its product. Health Plus is a product

of health + stock market. Health Insurance has got health benefits such as MSB and

HCB and also stock market.

ICICI PRUDENTIAL LIFE INSURANCE COMPANY ROFILE

ICICI Prudential Life Insurance is a joint venture between the ICICI Group and

Prudential plc, of the UK. ICICI started off its operations in 1955 with providing

finance for industrial development, and since then it has diversified into housing

finance, consumer finance, mutual funds to being a Virtual Universal Bank and its

latest venture Life Insurance.

ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank - one

of India's foremost financial services companies-and Prudential plc - a leadinginternational financial services group headquartered in the United Kingdom. Total

capital infusion stands at Rs. 47.80 billion, with ICICI Bank holding a stake of 74%

and Prudential plc holding 26%.We began our operations in December 2000 after

receiving approval from Insurance Regulatory Development Authority (IRDA). Today,

our nation-wide team comprises of over 2000 branches (inclusive of 1,100 micro-

offices), over 258,000 advisors; and 24 banc assurance partners.

ICICI Prudential is the first life insurer in India to receive a National Insurer Financial

Strength rating of AAA (Ind) from Fitch ratings. For three years in a row, ICICI

Prudential has been voted as India's Most Trusted Private Life Insurer, by The

Economic Times - AC Nielsen ORG Marg survey of 'Most Trusted Brands'. As we

grow our distribution, product range and customer base, we continue to tirelessly

uphold our commitment to deliver world-class financial solutions to customers all

over India.

6



Established in 1848, Prudential plc. of U.K. has grown to be the largest life insurance

and mutual fund company in U.K. Prudential plc. has had its presence in Asia for the

past 75 years catering to over 1 million customers across 11 Asian countries.

Prudential is the largest life insurance company in the United Kingdom (Source :

S&P's UK Life Financial Digest, 1998).ICICI and Prudential came together in 1993 to

provide mutual fund products in India and today are the largest private sector mutual

fund company in India. Their latest venture ICICI Prudential Life plans to take care of

the insurance needs at various stages of life.

ICICI is the no.1 private player in Insurance market in term of the premium share,

7913 crores (approx) was the total [premium by ICICI Prudential in the year 2006,

which is 28% of the total premium contribution by all private players in the market.

2,34,460 is the number of the Life Advisors that ICICI PRUDENTIAL was having till

2006-2007, and the number of branches that they are having is 583 which ahs

drastically changed from year 2005- 2006 to 2006-2007. This magic number 583 has

turned from the number 175.

So, here we have the marketing strategy for the ICICI Prudential that it is playing on

the numbers of Life Advisors and widening its network to increase its market share.

Contact InformationICICI Prudential Life Insurance Company LimitedRegistered OfficeICICI Towers9th floor, Bandra-Kurla ComplexMumbai - 400 051.Tel: 494 3232Delhi office:

3rd floor Videocon Towers

INDUSTRY PROFILE OF INSURACE IN INDIA

With an annual growth rate of 15-20% and the largest number of lifeinsurance policies in force, the potential of the Indian insurance industry is huge.Total value of the Indian insurance market (2004-05) is estimated at Rs. 450 billion(US$10 billion). According to government sources, the insurance and banking

services' contribution to the country's gross domestic product (GDP) is 7% out of which the gross premium collection forms a significant part. The funds available with

7



the state-owned Life Insurance Corporation (LIC) for investments are 8% ofGDP.

Till date, only 20% of the total insurable population of India is covered under variouslife insurance schemes, the penetration rates of health and other non-life insurancesin India is also well below the international level. These facts indicate the of immense

growth potential of the insurance sector.

The year 1999 saw a revolution in the Indian insurance sector, as major structuralchanges took place with the ending of government monopoly and the passage of theInsurance Regulatory and Development Authority (IRDA) Bill, lifting all entryrestrictions for private players and allowing foreign players to enter the market withsome limits on direct foreign ownership.

Though, the existing rule says that a foreign partner can hold 26% equity in aninsurance company, a proposal to increase this limit to 49% is pending with thegovernment. Since opening up of the insurance sector in 1999, foreign investments

of Rs. 8.7 billion have poured into the Indian market and 21 private companies havebeen granted licenses.

Innovative products, smart marketing, and aggressive distribution have enabledfledgling private insurance companies to sign up Indian customers faster thananyone expected. Indians, who had always seen life insurance as a tax savingdevice, are now suddenly turning to the private sector and snapping up the newinnovative products on offer.

The life insurance industry in India grew by an impressive 36%, with premiumincome from new business at Rs. 253.43 billion during the fiscal year 2004-2005,braving stiff competition from private insurers. This report "Indian Insurance Industry:New Avenues for Growth 2012", finds that the market share of the statebehemoth, LIC, has clocked 21.87% growth in business at Rs.197.86 billion byselling 2.4 billion new policies in 2004-05. But this was still not enough to arrest thefall in its market share, as private players grew by 129% to mop up Rs. 55.57 billionin 2004-05 from Rs. 24.29 billion in 2003-04.

Though the total volume of LIC's business increased in the last fiscal year (2004-2005) compared to the previous one, its market share came down from 87.04 to78.07%. The 14 private insurers increased their market share from about 13% to

about 22% in a year's time. The figures for the first two months of the fiscal year 2005-06 also speak of the growing share of the private insurers. The share of LICfor this period has further come down to 75 percent, while the private players havegrabbed over 24 percent.

There are presently 12 general insurance companies with four public sector companies and eight private insurers. According to estimates, privateinsurance companies collectively have a 10% share of the non-life insurancemarket.

Though the focus of this market research report is on the potential growth on the

Indian Insurance Sector, it also talks about the market size, market segmentation,and key developments in the market after 1999. The report gives an instant overview

8



of the Indian non-life insurance market, and covers fire, marine, and other non-lifeinsurance. The data is supplied in both graphical and tabular format for ease of interpretation and analysis. This report also provides company profiles of the major private insurance companies.

Companies - Life Insurance Corporation of India- ICICI Prudential Life Insurance- Birla Sun Life Insurance- Bajaj Allianz Life Insurance- TATA-AIG Life Insurance- AVIVA Life Insurance- ING VYSYA Life Insurance- HDFC-STD Life Insurance Insurance billing software allows medical offices to automatically process insurance

claim forms. It interacts with their scheduling software, accounting software andother office programs to simplify this process. Some services charge a fee (per provider) for submitting medical claims through clearinghouses, but offer freeelectronic submission. Other products leave you responsible for insurance claimssubmission.

This software can be purchased as a stand alone product with a variety of service

levels from claim printing only to complete

INTRODUCTION OF PORTFOLIO MANAGEMENT

Portfolio management is the selection and management of all of an organization’s

projects, programmes and related business-as-usual activities taking into account

resource constraints. A portfolio is a group of projects and programmes carried out

under the sponsorship of an organization. Portfolios can be managed at an

organizational, programme or functional level.

The process of managing the assets of a insurance policy or policy holder, including

choosing and monitoring appropriate investments and allocating funds accordingly. It

has often been said that portfolio management is not a science, but an art. Certainly,

the human factor manifesting in a portfolio manager’s ability to create out

performance bears out this truism. Computer system can pick and run to some

extent, portfolio which will provide a return equal to an index, but the possibilities of

higher fund out performance (and under performance) are presented by activelymanaged funds. With the more actively managed funds, portfolio managers can

9



demonstrate their experience and expertise in picking assets, countries, sectors’,

and companies that will generate positive returns.

If you own more than one security, you have an investment portfolio. You build the

portfolio by buying additional stocks, bonds, mutual funds, or other investments.

Your goal is to increase the portfolio's value by selecting investments that you

believe will go up in price.

According to modern portfolio theory, you can reduce your investment risk by

creating a diversified portfolio that includes enough different types, or classes, of

securities so that at least some of them may produce strong returns in any economic

climate.

Note that this explanation contains a number of important ideas:

Over time, other industry sectors have adapted and applied these ideas to other

types of "investments," including the following:

SCOPE OF STUDY

The scope of the study refers to the job that to know about the activities of theorganization. The study means that the analysis of the products of the company on

which he/she has to focus.

During the summer training the volunteer need to find out the corporate strategies of

the running company and the mile stone which the company has covered during its

journey. In the summer training, it is necessary for the student that he /she involve

with the experience guys to get the knowledge about the company. That is how thecompany has got the success, Or if it is going in the loss, why.

In my training period I have found that the reliance group is the biggest group in

Indian companies. I felt that I could have learnt more in the Reliance Life Insurance

co. Limited.

Reliance Life Insurance co. limited is the part of the Reliance Capital Limited which is

a growing company in the financial products.

10



Reliance Anil Dhirubhai Ambani group is also deals in communication, energy,

natural resources, media, and entertainment, healthcare and infrastructure.

OBJECTIVES OF THE STUDY

• To make comparative study on different financial products provided by LICand ICICI prudential.

• To study the different plans for investment provided by the companies.

•

To study the influence and role of insurance companies in managing aportfolio of both the companies.

• To improve our ability to sell financial products.

• To know that do people know about how insurance companies invest their

money or manage their portfolio.

• To get good market exposure.

REVIEW OF LITERATUE:

Lif e

Insur ance C

om

11



panie

s in India have their

histor y da

ting back t

o

12





s Or i

ental Lif e Insur ance

Company in

Kolkata. It

w

14



as st

ar ted by the Eur opean

s to pr ovid

e insur ance

c

15



over

to the Eur opeans. A d

iscr iminati

on patter n

wa

16



s f ol

lowed in the insur anc

e pr emium c

har ged. Hig

he

17



r pr e

miums wer e char ged f o

r Indian li

ves as they

w

18



er e c

onsider ed in the high

r isk categ

or y.

In 18

70

19



, Bom

bay Mutual Lif e Assur

ance Societ

y came into

e

20



xiste

nce that pr ovided the

r ight def i

nition of l

if

21



e ins

ur ance pr emium. Nor ma

l r ates wer

e of f er ed.

Th

22



e old

est Insur ance Company

in India w

ould be the

N

23



ation

al Insur ance Company

Ltd. Founde

d in 1906;

it

24



is i

n business even today

.

Lif e Insu

r ance in In

di

25



a was

nationalized in 1956

by the inc

or por ation

of

26



Lif e

Insur ance Cor por atio

n of India

(LIC of Ind

ia

27



). Al

l the pr ivate lif e in

sur ance com

panies in b

us

28



iness

in India at that tim

e wer e gr ou

ped under L

IC

29



. The

f r eedom of pr ivate s

ector f r om

some of the

g

30



over n

ment r egulations was

established

with the f

or

31



mulat

ion of Insur ance Regu

lator y and

Development

A

32



uthor

ity (IRDA) Act in 199

9. The IRDA

star ted is

su

33





f the

pr esent day Lif e Ins

ur ance Comp

anies in In

di

35



a ar e

joint ventur es betwe

en Indian g

r oups and c

on

36





ms of

the joint ventur es i

nclude a ma

jor ity stak

e

38



holdi

ng of Indian par tner

in the JV.

The lif e in

su

39



r ance

deals include a deta

il inf or mat

ion guide t

o

40



the c

ustomer f r om the insu

r ance agent

or br oker

ci

41



ting

the var ious insur ance

plans and

policies av

ai

42



lable

, the insur ance pr emi

um estimate

s and estim

at

43



e of

the pr ices of the ins

ur ance poli

cy shor t li

st

44



ed, t

he guidelines and ter

ms of the i

nsur ance co

mp

45



any a

nd much such inf o.

The life insurance companies work in close association with the life insurance agentsand brokers. Special training and education is provided to each insurance agent or broker about the facts of life insurance, how it works, industry info, insurance leads,

types of insurance policies on offer, claims settlements, life insurance laws in India,knowledge about the return of premium procedure of the life insurance company and thetax savings the insurance policy would provide.

Besides the usual life insurance services covering individual insurance, group lifeinsurance, family insurance, health insurance and medi claims, Life insurance productsin India are also designed for special target groups like:

• For seniors over 50, over 65 etc• For kids or children• For diabetics• For the elderly• For HIV patients

The ratings and reviews of the Life Insurance Companies in India are availableonline where you can check the rankings and rating of the insurance companyyou wish to buy a policy from. You can make comparison among the various lifeinsurance policies on offer by the life insurance companies of India.A comprehensive list of the major insurance companies has been provided herewith compete profile of the company, their insurance products and policies, theterms and statistics of the insurance providers etc.

Every company has different policy to offer. You just need to choose which is the

46



best for you. The amount for which you want to take the policy, the tenure of policy and the amount you want to pay in each installments, all these factors youneed to keep in mind and then choose the company which fulfills all your needsand provides full transparency.

CURRENT SCENARIO :

The insurance sector was opened up for private participation four years ago. For years now, the private players are active in the liberalized environment. Theinsurance market have witnessed dynamic changes which includes presence of afairly large number of insurers both life and non-life segment. Most of the privateinsurance companies have formed joint venture partnering well recognized foreignplayers across the globe.

There are now 29 insurance companies operating in the Indian market – 14 privatelife insurers, nine private non-life insurers and six public sector companies. Withmany more joint ventures in the offing, the insurance industry in India today stands ata crossroads as competition intensifies and companies prepare survival strategies ina detariffed scenario.

There is pressure from both within the country and outside on the Government toincrease the foreign direct investment (FDI) limit from the current 26% to 49%, whichwould help JV partners to bring in funds for expansion.

There are opportunities in the pensions sector where regulations are being framed.Less than 10 % of Indians above the age of 60 receive pensions. The IRDA hasissued the first licence for a standalone health company in the country as many moreplayers wait to enter. The health insurance sector has tremendous growth potential,

and as it matures and new players enter, product innovation and enhancement willincrease. The deepening of the health database over time will also allow players todevelop and price products for larger segments of society.

State Insurers Continue To Dominate: There may be room for manymore players in a large underinsured market like India with a population of over onebillion. But the reality is that the intense competition in the last five years has made itdifficult for new entrants to keep pace with the leaders and thereby failing to makeany impact in the market.

Also as the private sector controls over 26.18% of the life insurance market and over

26.53% of the non-life market, the public sector companies still call the shots.

47



The country’s largest life insurer, Life Insurance Corporation of India (LIC), had ashare of 74.82% in new business premium income in November 2005.

Similarly, the four public-sector non-life insurers – New India Assurance, NationalInsurance, Oriental Insurance and United India Insurance – had a combined market

share of 73.47% as of October 2005. ICICI Prudential Life Insurance Companycontinues to lead the private sector with a 7.26% market share in terms of freshpremium, whereas ICICI Lombard General Insurance Company is the leader amongthe private non-life players with a 8.11% market share. ICICI Lombard has focusedon growing the market for general insurance products and increasing penetrationwithin existing customers through product innovation and distribution.

Reaching Out To Customers: No doubt, the customer profile in theinsurance industry is changing with the introduction of large number of divergentintermediaries such as brokers, corporate agents, and bancassurance.

The industry now deals with customers who know what they want and when, and aremore demanding in terms of better service and speedier responses. With theindustry all set to move to a detariffed regime by 2007, there will be considerableimprovement in customer service levels, product innovation and newer standards of underwriting.

Intense Competition: In a de-tariffed environment, competition will manifestitself in prices, products, underwriting criteria, innovative sales methods andcreditworthiness. Insurance companies will vie with each other to capture marketshare through better pricing and client segmentation.

The battle has so far been fought in the big urban cities, but in the next few years,increased competition will drive insurers to rural and semi-urban markets.

Global Standards: While the world is eyeing India for growth and expansion,Indian companies are becoming increasingly world class. Take the case of LIC,which has set its sight on becoming a major global player following a Rs280-croreinvestment from the Indian government. The company now operatesin Mauritius, Fiji, the UK, Sri Lanka, Nepal and will soon start operations in SaudiArabia. It also plans to venture into the African and Asia-Pacific regions in 2006.

The year 2005 was a testing phase for the general insurance industry with a seriesof catastrophes hitting the Indian sub-continent.

However, with robust reinsurance programmes in place, insurers have successfullymanaged to tide over the crisis without any adverse impact on their balance sheets.

With life insurance premiums being just 2.5% of GDP and general insurancepremiums being 0.65% of GDP, the opportunities in the Indian market place isimmense. The next five years will be challenging but those that can build scale andmarket share will survive and prosper.

48



RESEARCH METHODOLOGY

The plan of the study of portfolio management of Life Insurance Corporation. is

described as follows. The information has gathered from the two main sources of

data collection. They are-

1. Primary Data

2. Secondary Data

Primary Data: it has been collected through the guidance of our trainer with

through knowledge of life insurance and their terminology of product in detail with

each and every insurance products terms and tenure.

Secondary Data: it has been collected through the websites, books,

magazines, newspaper, journals for collecting information regarding project under

study.

RESEARCH DESIGN

• NON-PROBABILITY

• EXPLORATORY & DISCRIPTIVE EXPERIMENTAL RESEARCH

The research is primarily both exploratory as well as descriptive in nature. The

sources of information are both primary & secondary.

49



A well-structured questionnaire was prepared and personal interviews were

conducted to collect the customer’s perception and buying behavior, through this

questionnaire.

SAMPLING METHODOLOGY

Sampling Technique: Initially, a rough draft was prepared keeping in mind

the objective of the research. A pilot study was done in order to know the accuracy of

the Questionnaire. The final Questionnaire was arrived only after certain important

changes were done. Thus my sampling came out to be judgmental and convenient

Sampling Unit:

The respondents who were asked to fill out questionnaires are the sampling units.

These comprise of employees of MNCs, Govt. Employees, Self Employed etc.

Sample size:

The sample size was restricted to only 40, which comprised of mainly peoples from

different regions of Chennai due to time constraints.

Sampling Area:

The area of the research was DELHI, INDIA.

50



FINANCIAL PRODUCT OF LIFE INSURANCE COMPANY OFINDIA

1) WHOLE LIFE PLAN:-

This plan is mainly devised to create an estate for the heirs of the policy holder as

the plan basically provides for payment of sum assured plus bonuses on the death of

the policyholder. However, considering the increased longevity of the Indian

population, the Corporation has amended the above provision, thereby providing for

payment of sum assured plus bonuses in the form of maturity claim on completion of

age 80 years or on expiry of term of 40 years from date of commencement of the

policy whichever is later.The premiums under the policy are payable up to age 80

years of the policyholder or for a term of 35 years whichever is later.

If the payment of premium ceases after 3 years, a paid-up policy for such reduced

sum assured will be automatically secured provided the reduced sum assured

exclusive of any attached bonus is not less than Rs.250

Suitable For:-

This policy is suitable for people of all ages who wish to protect their families from

financial crises that may occur owing to the policyholder’s premature death.

51



BENEFITS:-

Insurance Regulatory & Development Authority (IRDA) requires all life insurance

companies operating in India to provide official illustrations to their customers. The

illustrations are based on the investment rates of return set by the Life Insurance

Council (constituted under Section 64C(a) of the Insurance Act 1938) and is not

intended to reflect the actual investment returns achieved or may be achieved in

future by Life Insurance Corporation of India (LICI). For the year 2004-05 the two

rates of investment return declared by the Life Insurance Council are 6% and 10%

per annum.

PRODUCT SUMMARY :-

This is a whole of life assurance plan that provides financial protection against death

through out the lifetime of the Life Assured.

Premiums:

Under Table Nos 2 & 5 the premiums are payable yearly, half-yearly, quarterly,

monthly or through Salary deductions, as opted by you. Under Table No 8 the

premium is payable in one lump sum (Single Premium).

Under Table No 2 the premiums are payable for a period of 35 years or up to age 80

years, whichever is later. Under Table No 5 the premiums are payable up to the

selected premium paying period. Under Table No 2 the premiums are payable for a

period of 35 years or up to age 80 years, whichever is later. Under Table No 5 the

premiums are payable up to the selected premium paying period.

The premiums are payable for the periods as specified above or up to earlier death

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

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

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

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

the plan. A Final (Additional) Bonus may also be payable provided a policy has run

for certain minimum period.

52



Death Benefit:

The Sum assured plus all bonuses to date is payable in a lump sum upon the death

of the life assured.

Maturity Benefit:

This is a whole of life assurance plan and hence does not have a maturity date. You,

however, have the option to take the Sum Assured plus all bonuses declared under

the policy anytime after 40 years from the date of commencement of the policy

provided you have attained, at least,80yearsofage.

Supplementary/Extra Benefits:

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

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

SurrenderValue

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

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

Guaranteed Surrender Value:

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

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

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

is 90% of the single premium paid excluding any extra/additional premium.

CORPORATION’S POLICY ON SURRENDERS :

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

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

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

payable on death. This value will depend on the duration for which premiums have

53





Table No 5Age at entry: 35 yearsSum Assured: Rs.1,00,000/-Premium Paying term: 15 yearsMode of premium payment: YearlyAnnual Premium: Rs.4,444/-

Endof

year

Totalpremiums

paid till endof year

Benefit payable on death / maturity at the end of year

GuaranteedVariable Total

Scenario 1 Scenario 2 Scenario 1 Scenario 2

1 2917 100000 3900 10800 103900 1108002 5834 100000 7800 21600 107800 121600

3 8751 100000 11700 32400 111700 132400

4 11668 100000 15600 43200 115600 143200

5 14585 100000 19500 54000 119500 154000

6 17502 100000 23400 64800 123400 164800

7 20419 100000 27300 75600 127300 175600

8 23336 100000 31200 86400 131200 186400

9 26253 100000 35100 97200 135100 19720010 29170 100000 39000 108000 139000 208000

15 43755 100000 58500 162000 158500 262000

20 58340 100000 104000 288000 204000 388000

25 72925 100000 130000 360000 230000 460000

30 87510 100000 156000 432000 256000 532000

35 102095 100000 182000 504000 282000 604000

40 116680 100000 208000 576000 308000 676000

45 131265 100000 234000 648000 334000 748000

55



Note

This illustration is applicable to a non-smoker male/female standard (from medical,life style and occupation point of view) life.The non-guaranteed benefits (1) and (2) inabove illustration are calculated so that they are consistent with the ProjectedInvestment Rate of Return assumption of 6% p.a. (Scenario 1) and 10% p.a.(Scenario 2) respectively. In other words, in preparing this benefit illustration, it is

assumed that the Projected Investment Rate of Return that LICI will be able to earnthroughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be.The Projected Investment Rate of Return is not guaranteed. The main objective of the illustration is that the client is able to appreciate the features of the product andthe flow of benefits in different circumstances with some level of quantification.Future bonus will depend on future profits and as such is no guaranteed. However,once bonus is declared in any year and added to the policy, the bonus so added isguaranteed.The Maturity Benefit is the amount shown at the end of 45 years.

Endof

year

Totalpremiums





1 4444 100000 3900 10800 103900 1108002 8888 100000 7800 21600 107800 121600

3 13332 100000 11700 32400 111700 132400

4 17776 100000 15600 43200 115600 143200

5 22220 100000 19500 54000 119500 154000

6 26664 100000 23400 64800 123400 164800

7 31108 100000 27300 75600 127300 175600

8 35552 100000 31200 86400 131200 186400

9 39996 100000 35100 97200 135100 19720010 44440 100000 39000 108000 139000 208000

15 66660 100000 58500 162000 158500 262000

20 66660 100000 104000 288000 204000 388000

25 66660 100000 130000 360000 230000 460000

30 66660 100000 156000 432000 256000 532000

35 66660 100000 182000 504000 282000 604000

40 66660 100000 208000 576000 308000 676000

45 66660 100000 234000 648000 334000 748000

56



1.) WHOLE LIFE POLICY-LIMITED PAYMENT:-

This is the best form of life assurance for family provision since it enables the Life

Assured to pay all the premiums during the ordinarily vigorous and most productive

years of life. He need not pay any premium in the later stages of life if and when his

conditions might become adverse.

With Profits Limited Payments Policies do not cease to participate in profits after

completion of the premium paying period but continue to share in the periodical Bonus

Distribution until the death of the Life Assured.The Without-Profit option is available

under Table no. 3.

If the policyholder pays at least 3 years' premiums and then discontinues paying any

more premium, a reduced paid-up assurance policy comes into force.

Such a reduced paid-up Policy will not be entitled to participate in the profits declared thereafter, b

such Bonus as has already been declared on the Policy will remain attached thereto. The premiu

paying term under this plan is five years minimum and 55 years maximum.

BENEFITS:-

Insurance Regulatory & Development Authority (IRDA) requires all life insurancecompanies operating in India to provide official illustrations to their customers. The

57

Age at entry: Minimum - 15 years last birthday Maximum - 60 years

Sum Assured: Minimum - Rs.50,000/- Maximum - No limit

Mode of payment: Yearly, half-yearly, quarterly, monthly and SSS

Policy Loan: Yes




Council (constituted under Section 64C(a) of the Insurance Act 1938) and is not

intended to reflect the actual investment returns achieved or may be achieved in

future by Life Insurance Corporation of India (LICI). For the year 2004-05 the two

rates of investment return declared by the Life Insurance Council are 6% and 10%

per annum.

Product-summary:- This is a whole of life assurance plan that provides financial

protection against death through out the lifetime of the Life Assured.

Premiums: Under Table Nos 2 & 5 the premiums are payable yearly, half-yearly, quarterly,

monthly or through Salary deductions, as opted by you. Under Table No 8 the

premium is payable in one lump sum (Single Premium). Under Table No 2 the

premiums are payable for a period of 35 years or up to age 80 years, whichever is

later. Under Table No 5 the premiums are payable upto the selected period.

The premiums are payable for the periods as specified above or up to earlier death

Bonuses:

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

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

Reversionary Bonuses are declared per thousand Sum Assured annually at

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

guaranteed benefits of the plan. A Final (Additional) Bonus may also be payable

provided a policy has run for certain minimum period.

Death Benefit:

The Sum assured plus all bonuses to date is payable in a lump sum upon the death

of the life assured.

Maturity Benefit:

This is a whole of life assurance plan and hence does not have a maturity date. You,

however, have the option to take the Sum Assured plus all bonuses declared under

58





commencementofthepolicywhicheverislater.

DEATH BENEFIT

Sum assured plus accrued bonuses and the terminal bonuses, if any, on the death of

the policyholder are paid to his/her nominees/heirs.

Benefit Illustration

Statutory warning

“Some benefits are guaranteed and some benefits are variable with returns based on

the future performance of your insurer carrying on life insurance business. If your

policy offers guaranteed returns then these will be clearly marked “guaranteed” in the

illustration table on this page. If your policy offers variable returns then the

illustrations on this page will show two different rates of assumed future investment

returns. These assumed rates of return are not guaranteed and they are not upper or

lower limits of what you might get back as the value of your policy is dependent on a

number of factors including future investment performance.”

Table No 2Age at entry: 35 yearsSum Assured: Rs.1,00,000/-Premium Paying term: 45 yearsMode of premium payment: YearlyAnnual Premium: Rs.2917/-

60



Table No 5Age at entry: 35 yearsSum Assured: Rs.1,00,000/-Premium Paying term: 15 yearsMode of premium payment: YearlyAnnual Premium: Rs.4,444/-

Endof

year

Totalpremiums





1 2917 100000 3900 10800 103900 110800

2 5834 100000 7800 21600 107800 121600

3 8751 100000 11700 32400 111700 132400

4 11668 100000 15600 43200 115600 143200

5 14585 100000 19500 54000 119500 154000

6 17502 100000 23400 64800 123400 164800

7 20419 100000 27300 75600 127300 175600

8 23336 100000 31200 86400 131200 1864009 26253 100000 35100 97200 135100 197200

10 29170 100000 39000 108000 139000 208000

15 43755 100000 58500 162000 158500 262000

20 58340 100000 104000 288000 204000 388000

25 72925 100000 130000 360000 230000 460000

30 87510 100000 156000 432000 256000 532000

35 102095 100000 182000 504000 282000 604000

40 116680 100000 208000 576000 308000 67600045 131265 100000 234000 648000 334000 748000

61



Note:

i) This illustration is applicable to a non-smoker male/female standard (from medical,life style and occupation point of view) life.

ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so thatthey are consistent with the Projected Investment Rate of Return assumption of 6%p.a. (Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparingthis benefit illustration, it is assumed that the Projected Investment Rate of Returnthat LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is notguaranteed.

iii) The main objective of the illustration is that the client is able to appreciate thefeatures of the product and the flow of benefits in different circumstances with somelevel of quantification.

Endof

year

Totalpremiums





1 4444 100000 3900 10800 103900 110800

2 8888 100000 7800 21600 107800 121600

3 13332 100000 11700 32400 111700 132400

4 17776 100000 15600 43200 115600 143200

5 22220 100000 19500 54000 119500 154000

6 26664 100000 23400 64800 123400 164800

7 31108 100000 27300 75600 127300 175600

8 35552 100000 31200 86400 131200 1864009 39996 100000 35100 97200 135100 197200

10 44440 100000 39000 108000 139000 208000

15 66660 100000 58500 162000 158500 262000

20 66660 100000 104000 288000 204000 388000

25 66660 100000 130000 360000 230000 460000

30 66660 100000 156000 432000 256000 532000

35 66660 100000 182000 504000 282000 604000

40 66660 100000 208000 576000 308000 67600045 66660 100000 234000 648000 334000 748000

62





BENEFITS:-

Insurance Regulatory & Development Authority (IRDA) requires all life insurancecompanies operating in India to provide official illustrations to their customers. Theillustrations are based on the investment rates of return set by the Life Insurance

Council (constituted under Section 64C(a) of the Insurance Act 1938) and is notintended to reflect the actual investment returns achieved or may be achieved infuture by Life InsuranceCorporation of India (LICI).For the year 2004-05 the tworates of investment return declared by the Life Insurance Council are 6% and 10%perannum.Product summary This is a whole of life assurance plan that providesfinancialprotection against death through out the lifetime of the Life Assured.

Premiums:

Under Table Nos 2 & 5 the premiums are payable yearly, half-yearly, quarterly,

monthly or through Salary deductions, as opted by you. Under Table No 8 thepremium is payable in one lump sum (Single Premium).

Under Table No 2 the premiums are payable for a period of 35 years or up to age 80years, whichever is later. Under Table No 5 the premiums are payable up to theselected premium paying period. The premiums are payable for the periods asspecified above or up to earlier death

Bonuses:

This is a with-profit plan and participates in the profits of the Corporation’s lifeinsurance business. It gets a share of the profits in the form of bonuses. SimpleReversionary Bonuses are declared per thousand Sum Assured annually at the endof each financial year. Once declared, they form part of the guaranteed benefits of the plan. A Final (Additional) Bonus may also be payable provided a policy has runfor certain minimum period.

Death Benefit :

The Sum assured plus all bonuses to date is payable in a lump sum upon the deathof the life assured.

Maturity Benefit:

This is a whole of life assurance plan and hence does not have a maturity date. You,however, have the option to take the Sum Assured plus all bonuses declared under the policy anytime after 40 years from the date of commencement of the policyprovided you have attained, at least,80yearsofage.

Supplementary/Extra Benefits:-

64





Surrender-Value:-


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

Guaranteed-Surrender-Value:-

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

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

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

is 90% of the single premium paidexcludinganyextra/additional-premium.

Corporation’s policy on surrenders:- :

In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on

surrender reflects the discounted value of the reduced claim amount that would bepayable on death. This value will depend on the duration for which premiums havebeen paid and the policy duration at the date of surrender. In some circumstances, incase of early termination of the policy, the surrender value payable may be less thanthe total premiums paid.The Corporation reviews the surrender value payable under its plans from time totime depending on the economic environment, experience and other factors.

SURVIVAL BENEFIT:-

Sum assured plus accrued bonuses and the terminal bonuses, if any, on the

policyholder attaining age 80 years or on expiry of term of 40 years from the date of

commencement of the policywhicheverislater.

DEATH BENEFIT:-

65



Sum assured plus accrued bonuses and the terminal bonuses, if any, on the death of

the policyholder are paid to his/her nominees/heirs.

Benefit Illustration

STATUTORY WARNING :

“Some benefits are guaranteed and some benefits are variable with returns based onthe future performance of your insurer carrying on life insurance business. If your policy offers guaranteed returns then these will be clearly marked “guaranteed” in theillustration table on this page. If your policy offers variable returns then theillustrations on this page will show two different rates of assumed future investmentreturns. These assumed rates of return are not guaranteed and they are not upper or lower limits of what you might get back as the value of your policy is dependent on a

number of factors including future investment performance.

Table No 2Age at entry: 35 yearsSum Assured: Rs.1,00,000/-Premium Paying term: 45 yearsMode of premium payment: YearlyAnnual Premium: Rs.2917/-

66



Table No 5Age at entry: 35 yearsSum Assured: Rs.1,00,000/-Premium Paying term: 15 years

Mode of premium payment: YearlyAnnual Premium: Rs.4,444/-

Endof

year

Totalpremiums





1 2917 100000 3900 10800 103900 110800

2 5834 100000 7800 21600 107800 121600

3 8751 100000 11700 32400 111700 132400

4 11668 100000 15600 43200 115600 143200

5 14585 100000 19500 54000 119500 154000

6 17502 100000 23400 64800 123400 164800

7 20419 100000 27300 75600 127300 175600

8 23336 100000 31200 86400 131200 1864009 26253 100000 35100 97200 135100 197200

10 29170 100000 39000 108000 139000 208000

15 43755 100000 58500 162000 158500 262000

20 58340 100000 104000 288000 204000 388000

25 72925 100000 130000 360000 230000 460000

30 87510 100000 156000 432000 256000 532000

35 102095 100000 182000 504000 282000 604000

40 116680 100000 208000 576000 308000 67600045 131265 100000 234000 648000 334000 748000

67





bonus become payable at the 25th year. An important feature of this type of policiesis that in the event of death at any time within the policy term, the death claimcomprises full sum assured without deducting any of the survival benefit amounts,which have already been paid. Similarly, the bonus is also calculated on the full sumassured.

BENEFITS:-

INTRODUCTION:-

Insurance Regulatory & Development Authority (IRDA) requires all life insurancecompanies operating in India to provide official illustrations to their customers. Theillustrations are based on the investment rates of return set by the Life InsuranceCouncil (constituted under Section 64C(a) of the Insurance Act 1938) and is notintended to reflect the actual investment returns achieved or may be achieved in

future by Life Insurance CorporationofIndia(LICI).For the year 2004-05 the two ratesof investment return declared by the Life Insurance Council are 6% and 10% per annum.

Product summary :-These are Money Back type Assurance plans that providefinancial protection against death throughout the term of plan along with the periodicpayments on survivalatspecifieddurationsduringtheterm.

Premiums:-

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

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

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

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

Reversionary Bonuses are declared per thousand Sum Assured annually at the endof each financial year. Once declared, they form part of the guaranteed benefits of

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

certain minimum period.

Death Benefit: The Sum Assured plus all bonuses to date is payable in a lump

sum upon the death of the life assured during the policy term irrespective of the

Survival benefit /benefits paid earlier

69



SURVIVAL BENEFITS:

The percentage of Sum Assured as mentioned below will be paid on survival to the

end of specified durations:

% of Sum Assured paid at the end of specified duration

DurationPlan

75 93

5 20% 15%

10 20% 15%

15 20% 15%

20 40% 15%

25 - 40%

All bonuses declared upto the maturity date will also be paid along with the final

survival benefit.

Supplementary/Extra Benefits:



Surrender Value:


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

Guaranteed Surrender Value: The policy may be surrendered after it has been in

force for 3 years or more. The guaranteed surrender value is 30% of the basic

premiums paid excluding the first year’s premium and all survival benefits paid

earlier.

Corporation’s policy on surrenders: In practice, the Corporation will pay a SpecialSurrender Value – which is either equal to or more than the Guaranteed Surrender

70



Value. The benefit payable on surrender is the discounted value of the reduced claim

amount that would be payable on death or at maturity. This value will depend on

the duration for which premiums have beenpaid and the policy duration at the date of

surrender.In some circumstances, in case of early termination of the policy, the

surrender value payable may be less than the total premiums paid. The Corporation

reviews the surrender value payable under its plans from time to time depending on

the economic environment, experienceandotherfactors.

Note:

The above is the product summary giving the key features of the plan. This is for

illustrative purpose only. This does not represent a contract and for details please

refer to your policy document.

Plan/ Term 75/ 20 Years 93/ 25 Years

At the end of 5 years 20% 15%



At the end of 20 years balance 40% + bonus 15%

At the end of 25 years NIL balance 40% + bonus

71



Age at entry : 35 years

Policy Term : 20 YearsMode of premium payment : YearlySum Assured : Rs. 1,00,000 /-Annual Premium : Rs. 6564 /-

Age at entry : 35 yearsPolicy Term : 25 YearsMode of premium payment : YearlySum Assured : Rs. 1,00,000 /-Annual Premium : Rs. 5507 /-

Endof

year

Totalpremiums


Benefit on Death during the year (Rs.)

Guaranteed

Variable Total


1 6564 100000 2400 4800 102400 104800

2 13128 100000 4800 9600 104800 109600

3 19692 100000 7200 14400 107200 114400

4 26256 100000 9600 19200 109600 119200

5 32820100000 12000 24000 112000 124000

6 39384 100000 14400 28800 114400 128800

7 45948 100000 16800 33600 116800 133600

8 52512 100000 19200 38400 119200 138400

9 59076 100000 21600 43200 121600 143200

10 65640100000 24000 48000 124000 148000

15 98460 100000 36000 72000 136000 172000

20 131280100000 48000 96000 148000 196000

Endof

year

Totalpremiums

paid till end of year

Benefit on survival / maturity at the end of year

Guaranteed Variable Total


1 6564 0 0 0 0 0

2 13128 0 0 0 0 0

3 19692 0 0 0 0 0

4 26256 0 0 0 0 0

5 32820 20000 0 0 20000 20000

6 39384 0 0 0 0 0

7 45948 0 0 0 0 0

8 52512 0 0 0 0 0

9 59076 0 0 0 0 0

10 65640 20000 0 0 20000 20000

15 98460 20000 0 0 20000 20000

20 131280 40000 53000 106000 93000 146000

Endof

year

Totalpremiums





1 5507 100000 2700 4800 102700 105800

2 11014 100000 5400 9600 105400 111600

3 16521 100000 8100 14400 108100 117400

4 22028 100000 10800 19200 110800 123200

5 27535 100000 13500 24000 113500 129000

6 33042 100000 16200 28800 116200 134800

7 38549 100000 18900 33600 118900 140600

8 44056 100000 21600 38400 121600 146400

9 49563 100000 24300 43200 124300 152200

10 55070 100000 27000 48000 127000 158000

15 82605 100000 40500 72000 140500 187000

20 110140 100000 54000 116000 154000 216000

25 137675 100000 67500 145000 167500 245000

72



i) This illustration is applicable to a non-smoker male/female standard

(from medical, life style and occupation point of view) life.

ii) The non-guaranteed benefits (1) and (2) in above illustration are

calculated so that they are consistent with the Projected Investment Rateof Return assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2)

respectively. In other words, in preparing this benefit illustration, it is

assumed that the Projected Investment Rate of Return that LICI will be

able to earn throughout the term of the policy will be 6% p.a. or 10% p.a.,

as the case may be. The Projected Investment Rate of Return is not

guaranteed.

iii) The main objective of the illustration is that the client is able to

Endof

year

Totalpremiums

paid till end of year




15507 0 0 0 0 0

2 11014 0 0 0 0 0

3 16521 0 0 0 0 0

4 22028 0 0 0 0 0

5 27535 15000 0 0 15000 15000

6 33042 0 0 0 0 07 38549 0 0 0 0 0

8 44056 0 0 0 0 0

9 49563 0 0 0 0 0

10 55070 15000 0 0 15000 15000

15 82605 15000 0 0 15000 15000

20 110140 15000 0 0 15000 15000

25 137675 40000 74500 161000 114500 201000

73



appreciate the features of the product and the flow of benefits in different

circumstances with some level of quantification.

iv) Future bonus will depend on future profits and as such is not

guaranteed. However, once bonus is declared in any year and added to

the policy, the bonus so added is guaranteed.

ii) PLAN PARAMETERS:-

Minimum Maximum

Entry age 13 (lbd) 50

Sum assured (Rs.) 50,000 NO LIMIT

Term (years) Fixed at 20 for plan 75 and25 for plan 93

-

Mode of Payment Maximum Maturity Age Policy loan available

Yearly, Half-yearly,Quarterly, Monthly,

Salary Saving Scheme70 years No

74



2.)THE MONEY BACK POLICY-25 YEARS:-

Unlike ordinary endowment insurance plans where the survival benefits are payableonly at the end of the endowment period, this scheme provides for periodicpayments of partial survival benefits as follows during the term of the policy, of course so long as the policy holder is alive.

In the case of a 20-year Money-Back Policy (Table 75), 20% of the sum assuredbecomes payable each after 5, 10, 15 years, and the balance of 40% plus theaccrued bonus become payable at the 20th year.

For a Money-Back Policy of 25 years (Table 93), 15% of the sum assured becomespayable each after 5, 10, 15 and 20 years, and the balance 40% plus the accrued

bonus become payable at the 25th year.

An important feature of this type of policies is that in the event of death at any timewithin the policy term, the death claim comprises full sum assured without deductingany of the survival benefit amounts, which have already been paid. Similarly, thebonus is also calculated on the full sum assured.

BENEFITS:-

INTRODUCTION:-

Insurance Regulatory & Development Authority (IRDA) requires all life insurance

companies operating in India to provide official illustrations to their customers. The


Council(constituted under Section 64C(a) of the Insurance Act 1938)

and is not intended to reflect the actual investment returns achieved or may be

achieved in future by Life Insurance Corporation of India (LICI).

For the year 2004-05 the two rates of investment return declared by the Life

Insurance Council are 6% and 10% per annum These are Money Back type

Assurance plans that provide financial protection against death throughout the term

of plan along with the periodic payments survival at specified durations during the

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

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

BONUSES:- This is a with-profit plan and participate in the profits of the

Corporation’s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured

75








the future performance of your insurer carrying on life insurance business. If your


illustration table on this page. If your policy offers variable returns then the

illustrations on this page will show two different rates of assumed future investment

returns. These assumed rates of return are not guaranteed and they are not the

upper or lower limits of what you might get back as the value of your policy is

dependent on a number of factors including future investment performance.”

Age at entry: 35 yearsPolicy Term: 20 YearsMode of premium payment: Yearly

Sum Assured: Rs. 1,00,000 /-Annual Premium : Rs. 6564 /-

Age at entry: 35 yearsPolicy Term: 25 YearsMode of premium payment: YearlySum assured : Rs. 1,00,000 /-Annual Premium : Rs. 5507 /-

Endof

Totalpremiums



Endof

year

Totalpremiums





1 6564 100000 2400 4800 102400 104800

2 13128 100000 4800 9600 104800 1096003 19692 100000 7200 14400 107200 114400

4 26256 100000 9600 19200 109600 119200

5 32820 100000 12000 24000 112000 124000

6 39384 100000 14400 28800 114400 128800

7 45948 100000 16800 33600 116800 133600

8 52512 100000 19200 38400 119200 138400

9 59076 100000 21600 43200 121600 143200

10 65640 100000 24000 48000 124000 148000

15 98460 100000 36000 72000 136000 172000

20 131280 100000 48000 96000 148000 196000

Endof

year

Totalpremiums





1 6564 0 0 0 0 0

2 13128 0 0 0 0 0

3 19692 0 0 0 0 0

4 26256 0 0 0 0 0

5 32820 20000 0 0 20000 20000

6 39384 0 0 0 0 0

7 45948 0 0 0 0 0

8 52512 0 0 0 0 09 59076 0 0 0 0 0

10 65640 20000 0 0 20000 20000

15 98460 20000 0 0 20000 20000

20 131280 40000 53000 106000 93000 146000

78



year paid till end of


1 5507 100000 2700 4800 102700 105800

2 11014 100000 5400 9600 105400 111600

3 16521 100000 8100 14400 108100 117400

4 22028 100000 10800 19200 110800 123200

5 27535 100000 13500 24000 113500 129000

6 33042 100000 16200 28800 116200 134800

7 38549 100000 18900 33600 118900 140600

8 44056 100000 21600 38400 121600 146400

9 49563 100000 24300 43200 124300 152200

10 55070 100000 27000 48000 127000 158000

15 82605 100000 40500 72000 140500 187000

20 110140 100000 54000 116000 154000 216000

25 137675 100000 67500 145000 167500 245000

79





added is guaranteed.

UNIT LINKED INSURANCE PLAN:-

FORTUNE PLUS:-

It is a unit linked assurance plan where premium payment term (PPT) is 5 years andthe premium payable in the first year will be 50% of total premium payable under thepolicy. The level of cover will depend on the level of premium you agree to pay.

Four types of investment funds are offered. Premiums paid after allocation chargewill purchase units of the Fund type chosen. The Unit Fund is subject to various

charges and value of the units may increase or decrease, depending on the NetAsset Value (NAV). The plan therefore serves the purpose of insurance-cum-investment.

Payment of Premiums: You may pay premiums regularly at yearly, half-yearly,quarterly or monthly (ECS) intervals for 5 years. The minimum First year premiumwill be Rs.20,000/- and you may pay any amount exceeding it. From second year onwards each year’s premium will be 25% of the first year premium.

Other Features:

Partial Withdrawals: You may encash the units partially after the third policyanniversary subject to the following:

i) In case of minors, partial withdrawals shall be allowed from the policy anniversarycoinciding with or next following the date on which the life assured attains majority(i.e. on or after18th birthday).

ii) Partial withdrawals may be in the form of fixed amount or in the form of fixednumber of units.

iii) For 2 years’ period from the date of withdrawal, the Sum Assured under the Basicplan shall be reduced to the extent of the amount of partial withdrawals made.

iv) Under policies where less than 3 years’ premiums have been paid and further premiums are not paid, the partial withdrawals shall not be allowed.

v) Under policies where at least 3 years’ premiums have been paid, partialwithdrawal will be allowed subject to Policyholder’s Fund Value being at least Rs.10,000/-.

81



ii) Switching: You can switch between any fund types for the entire Fund Valueduring the policy term subject to switching charges, if any.

iii) Discontinuance of premiums: If premiums are payable either yearly, half-yearly, quarterly or monthly (ECS) and the same have not been duly paid within thedays of grace under the Policy, the Policy will lapse. A lapsed policy can be revivedduring the period of two years from the due date of first unpaid premium.

I) Where at least 3 years’ premiums have been paid, the Life Cover and AccidentBenefit rider, if any, shall continue during the revival period.

During this period, the charges for Mortality and Accident Benefit cover, if any, shallbe taken, in addition to other charges, by canceling an appropriate number of unitsout of the Policyholder’s Fund Value every month. This will continue to providerelevant risk covers for:

i. Two years from the due date of first unpaid premium, or

ii. Till the date of maturity, or

iii Till such period that the Policyholder’s Fund Value reduces to Rs. 5,000/-,whichever is earlier.

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

A. In case of Death: Higher of Sum Assured under the Basic Plan or thePolicyholder’s Fund Value. The Sum Assured shall be subject to provisions of PartialWithdrawals made, if any.

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

C. On Maturity: The Policyholder’s Fund Value.

D. In case of Surrender (including Compulsory Surrender): The Policyholder’s FundValue. The Surrender value, however, shall be paid only after the completion of 3

policy years.

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

II) Where the policy lapses without payment of at least 3 years’ premiums, the LifeCover and Accident Benefit rider cover, if any, shall cease and no charges for thesebenefits shall be deducted. However, deduction of all the other charges shallcontinue. The benefits under such a lapsed policy shall be payable as under:

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

82



G. In case of death due to accident: Only, the amount as under F above.

H. In case of Surrender (including Compulsory Surrender): Policyholder’s FundValue / monetary value as the case may be, shall be payable after the completion of the third policy anniversary. No amount shall be payable within 3 years from the date

of commencement of policy.

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

iv) Revival: If due premium is not paid within the days of grace, the policy lapses. Alapsed policy can be revived during the period of two years from the due date of firstunpaid premium or before maturity, whichever is earlier. The period during which thepolicy can be revived will be called “Period of revival” or “revival period”.

If premiums have not been paid for at least 3 full years, the policy may be revived

within two years from the due date of first unpaid premium. The revival shall bemade on submission of proof of continued insurability to the satisfaction of theCorporation and the payment of all the arrears of premium without interest.

If at least 3 full years’ premiums have been paid and subsequent premiums are notpaid, the policy may be revived within two years from the due date of first unpaidpremium but before the date of maturity. No proof of continued insurability shall berequired but all 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 declinethe revival of a lapsed policy. The revival of a lapsed policy shall take effect onlyafter the same is approved by the Corporation and is specifically communicated inwriting to the Proposer / Life AssuredIrrespective of what is stated above, if less than 3 years’ premiums have been paidand the Policyholder’s Fund Value is not sufficient to recover the charges, the policyshall be terminated and thereafter revival will not be entertained. If 3 years’ or morethan 3 years’ premiums have been paid and the Policyholder’s Fund Value reducesto Rs. 5000/-, the policy shall terminate and Policyholder’s Fund Value as on suchdate shall be refunded to the Life Assured and thereafter revival will not be allowed.

Settlement Option:

When the policy comes for maturity, you may exercise “Settlement Option” and mayreceive the policy money in installments spread over a period of not more than fiveyears from the date of maturity. There shall not be any life cover during this period.The value of installment payable on the date specified shall be subject to investmentrisk i.e. the NAV may go up or down depending upon the performance of the fund.

Reinstatement:A policy once surrendered will not be reinstated.

Risks borne by the Policyholder:

83



i) LIC’s Fortune Plus is a Unit Linked Life Insurance product which isdifferent from the traditional insurance products and are subject to the riskfactors. The premium paid in Unit Linked Life Insurance policies aresubject to investment risks associated with capital markets and the NAVsof the units may go up or down based on the performance of fund and

factors influencing the capital market and the insured is responsible for his/her decisions. Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Fortune Plus is only the name of theunit linked life insurance contract and does not in any way indicate thequality of the contract, its future prospects or returns. Please know theassociated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. The various fundsoffered under this contract are the names of the funds and do not in anyway indicate the quality of these plans, their future prospects and returns.All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.

Cooling off period: If you are not satisfied with the “Terms andConditions” of the policy, you may return the policy to us within 15 days.

Loan: No loan will be available under this plan.

Assignment:Assignment will be allowed under this plan.

Exclusions: any amount exceeding it. From second year onwards eachyear’s premium will be 25% of the first year premium. In case the LifeAssured commits suicide at any time within one year, the Corporation willnot entertain any claim by virtue of the policy except to the extent of thePolicyholder’s Fund Value on death.

Benefits:A) Death Benefit: Higher of Sum Assured or the Policyholder’s FundValue shall beavailableasdeathbenefit.

B) Maturity Benefit: On the Life Assured surviving the maturity date of the contract, an amount equal to the Policyholder’s Fund Value is payable.

3. Options:

ACCIDENT-BENEFIT-OPTION:If you are above 18 years of age, you may opt for Accident Benefit equal tothe amount of life cover subject to minimum of Rs. 25,000/- and maximum of Rs. 50 lakh (taken all policies with LIC of India and other insurers). In case of

84



death by Accident, an additional sum equal to Accident Benefit sum assuredshall be payable.

Eligibility Conditions and Other Restrictions:

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/-.

Method of Calculation of Unit price:

Units will be allotted based on the Net Asset Value (NAV) of the respective fund as

on the date of allotment. There is no Bid-Offer spread (the Bid price and Offer price

of units will both be equal to the NAV). The NAV will be computed on daily basis and

will be based on investment performance, Fund Management Charge and whether

fund is expanding or contracting under each fund type and shall be calculated as

under:

5. Investment of Funds: Plan offers following four Funds detailed below:

(a) Minimum Age at entry 12 years (age last birthday)

(b) Maximum Age at entry 60 years (age nearer birthday)

(c) Minimum Maturity Age 18 years (completed)

(d) Maximum Maturity Age 65 years (age nearer birthday)

(e) Minimum Policy Term 5 years

(f) Maximum Policy Term 20 years

(g) Minimum Premium Rs.20,000/- for first Premium

(h) Sum Assured under theBasic Plan

Higher of 5 times the first year’s annualized premium or half of the policy term times the first year’s annualizedpremium.

85



FundType

Investment inGovernment /GovernmentGuaranteed

Securities /Corporate Debt

Short-termInvestment such asmoney marketInstruments(Including Govt.

Securities &Corporate Debt)

Investment inListed EquityShares

Details andobjective of the fund for

risk/return

BondFund

Not less than 60% 100% Nil Low risk

SecuredFund

Not less than 45% Not more than 85%

Not less than15% & Notmore than55%

Steady Income- Lower toMedium risk

BalancedFund


Not less than

30% & Notmore than70%

Balanced

Income andgrowth -Medium risk

GrowthFund


Not less than40% & Notmore than55%

Long termCapital growth- High Risk

The Policyholder has the option to choose any ONE of the above 4 funds.

Appropriation price is applied (when fund is expanding):

Market value of investments held by the fund plus the expenses incurred in thepurchase of the assets plus the value of any current assets plus any accrued incomenet of fund management charges less the value of any current liabilities lessprovisions, if any divided by the number of units existing at the valuation date (beforeany new units are allocated).

Expropriation price is applied (when fund is contracting):

Market value of investments held by the fund less the expenses incurred in the saleof assets plus the value of any current assets plus any accrued income net of fundmanagement charges less the value of any current liabilities less provisions, if anydivided by the number of units existingatthevaluationdatebeforeanyunitsredeemed).

Applicability of Net Asset Value (NAV):

The premiums received up to a particular time (presently 3 p.m.) by the servicingbranch of the Corporation through ECS or by way of a local cheque or a demand

86



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 receivedafter such time by the servicing branch of the Corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium isreceived, the closing NAV of the next business day shall be applicable.

Similarly, in respect of the valid applications received for surrender, partialwithdrawal, death claim, switches etc up to such time by the servicing branch of theCorporation closing NAV of that day shall be applicable. For the valid applicationsreceived in respect of surrender, partial withdrawal, death claim, switches etc after such time by the servicing branch of the Corporation the closing NAV of the nextbusiness day shall be applicable.

In respect of maturity claim, NAV of the date of maturity shall be applicable.The timing given is as per the existing guidelines and changes in this regard shall beas per the instruction from IRDA.

7.CHARGES UNDER THE PLAN:-

A) Premium Allocation Charge: This is the percentage of the premium deductedfrom the premium received. The balance constitutes that part of the premium whichis utilized to purchase (Investment) units for the policy.

The allocation charges are as below

Premium Band (per annum)Allocation Charge

First year thereafter

20,000 to 2,00,000 15.00 % 2.50 %

2,00,001 to 3,00,000 14.50 % 2.50 %

3,00,001 to 6,00,000 13.00 % 2.50 %

6,00,001 and above 13.50 % 2.50 %

Charges for Risk Covers:

i) Mortality Charge - This is the cost of life insurance cover which is age specific andwill be taken every month. The life insurance cover is the difference between SumAssured under Basic plan and the Fund Value after deduction of all other charges.

The charges per Rs. 1000/- life insurance cover for some of the ages in respect of ahealthy life are as under:

Age 25 35 45 55

87



Rs. 1.42 1.73 3.89 10.76

ii) Accident Benefit Charge - It is the cost of Accident Benefit rider (if opted for) andwill be levied every month at the rate of Rs. 0.50 per thousand Accident Benefit SumAssured per policy year.

C) Other Charges:

i) Policy Administration Charge - Rs. 60/- per month during the first policy year and

Rs. 20/- per month thereafter, throughout the term of the policy.

ii) Fund Management Charge - It is the charge levied as a percentage of the value of

units at following rates:

0.75% p.a. of Unit Fund for “Bond” Fund1.00% p.a. of Unit Fund for “Secured” Fund

1.25% p.a. of Unit Fund for “Balanced” Fund

1.50% p.a. of Unit Fund for “Growth” Fund

Fund Management Charge shall be appropriated while computing NAV.

iii) Switching Charge - This is a charge levied on switching of monies from one fund

to another. Within a given policy year 4 switches will be allowed free of charge.Subsequent switches in that year shall be subject to a switching charge of Rs. 100

per switch.

iv) Bid/Offer Spread - Nil.

v) Surrender Charge - Nil.

vi) Service Tax Charge - A service tax charge shall be levied on the Mortality

Charges and Accident Benefit rider charges, if any, on a monthly basis. The level of

this charge will be as per the rate of service tax as applicable from time to time.

Presently, the rate of Service Tax is 12% with an educational cess at the rate of 3%

thereon and hence effective rate is 12.36%.

vii) Miscellaneous Charge - This is a charge levied for an alteration within the

88



contract, such as reduction in policy term, change in premium mode, etc. An

alteration may be allowed subject to a charge of Rs.50/-.

D) Right to revise charges:

The Corporation reserves the right to revise all or any of the above charges except

the Premium Allocation charge and Mortality charge. The modification in charges will

be done with prospective effect with the prior approval of IRDA.

Although the charges are reviewable, they will be subject to the following maximum

limit:

- Policy Administration Charge

Rs.150/- per month during the first policy year and Rs. 50/- per month thereafter,

throughout the term of the policy.

- Fund Management Charge: The Maximum for each Fund will be as follows:

i. Bond Fund: 1.5% p.a. of Unit Fund

ii. Secured Fund: 2.0% p.a. of Unit Fund

iii. Balanced Fund: 2.5% p.a. of Unit Fund

iv. Growth Fund: 3.0% p.a. of Unit Fund

- Switching Charge shall not exceed Rs. 200/- per switch.

- Miscellaneous Charge shall not exceed Rs. 100/- each time when an alteration is

requested.

8. Surrender:

The surrender value, if any, is payable only after the completion of the third policy

anniversary. The surrender value will be the Policyholder’s Fund Value at the date of

surrender. There will be no Surrender charge.

If you apply for surrender of the policy within 3 years from the date of commencement of policy, then the Policyholder’s fund value of units shall be

89



converted into monetary terms. No charges shall be deducted thereafter and this

monetary value shall be paid on completion of 3years from the date of

commencement of policy.

In case of death of life assured after the date of surrender but before the completion

of 3 years from the date of commencement of policy the monetary value payable on

the completion of 3 years shall be payable to the nominee/ legal heir immediately on

death.

Compulsory Surrender:

The policy shall be surrendered compulsorily in following cases:

i) where the policy is not revived during the period of revival, the policy shall be

terminated after completion of 3 years from the date of commencement of the policy

or on expiry of revival period, whichever is later. However, if the date of maturity falls

before the expiry of revival period, then the policy shall be terminated on the

dateofmaturity.

ii) where premiums have been paid for less than 3 years and the balance in

policyholder’s fund value is not sufficient to recover the relevant charges;

iii) where premiums have been paid for at least 3 years and the balance in

policyholder’s fund value falls below Rs. 5,000/-.

The conversion in monetary value shall be as under:

The NAV on the date of application for surrender or on the date when revival period

is over (in case of compulsory surrender), as the case may be, multiplied by the

number of units in the Policyholder’s Fund as on that date.

90



FREQUENCY OF PREMIUM PAYMENT: ANNUAL BASIC PLANAGE AT ENTRY: 35 yearsTERM: 20 yearsPPT: 5 yearsFIRST YEAR PREMIUM: 20000

SUM ASSURED UNDER BASIC PLAN: 200000

End Of Policy Year

TotalPremium

Paid

DEATH BENEFIT PAYABLE AT END OF YEAR OFDEATH

SURRENDER/MATURITY VALUE

Guaranteed Variable VariablePayableAmount

PayableAmount

PayableAmount

PayableAmount

Scenario1

Scenario2

Scenario1

Scenario2

Scenario1

Scenario 2

1 20000 200000 16732 17384 200000 200000 0 0

2 25000 200000 22048 23602 200000 200000 0 03 30000 200000 27610 30360 200000 200000 27610 30360

4 35000 200000 33429 37706 200000 200000 33429 37706

5 40000 200000 39518 45692 200000 200000 39518 45692

6 40000 200000 40752 49048 200000 200000 40752 49048

7 40000 200000 42007 52671 200000 200000 42007 52671

8 40000 200000 43289 56592 200000 200000 43289 56592

9 40000 200000 44597 60838 200000 200000 44597 60838

10 40000 200000 45924 65433 200000 200000 45924 65433

11 40000 200000 47260 70403 200000 200000 47260 70403

12 40000 200000 48597 75778 200000 200000 48597 75778

13 40000 200000 49924 81591 200000 200000 49924 81591

14 40000 200000 51232 87884 200000 200000 51232 87884

15 40000 200000 52511 94702 200000 200000 52511 94702

16 40000 200000 53750 102096 200000 200000 53750 102096

17 40000 200000 54939 110129 200000 200000 54939 110129

18 40000 200000 56067 118870 200000 200000 56067 118870

19 40000 200000 57121 128399 200000 200000 57121 128399

20 40000 200000 58090 138809 200000 200000 58090 138809

Reduction in yield @ 6% 3.99%Reduction in yield @ 10% 3.17%

CHILDREN PLANS:-

91



1.) CHILD FORTUNE PLUS:-

Introduction:All of us wish to ensure the best possible future for our children. With the cost of education sky rocketing, it is all the more important that an early provision is made toensure that your loved ones get a good head start in life. LIC’s Child Fortune Plus isa total solution to their education and other needs. The plan is a unit linked oneoffering the prospects of long term capital appreciation.

Benefits:

On Maturity: The maturity benefit will be payable on the earlier of; either the childattaining 25 years of age or the life assured attaining 75 years. On the date of maturity, an amount equal to the policy holders fund value is payable.

On Death:

In the unfortunate event of death of the policy holder, the nomineechild will be paid the Sum Assured under the policy. Further all future premiums willbe waived and units equivalent thereof shall be credited to the policy fund account atthe applicable unit price.

Am I eligible?

A parent, with a child aged 17 years or less can go in for Child Fortune Plus. Thepolicy will cover the life of the parent.

Partial Withdrawal/Surrender:

A Policyholder can partially withdraw the units at any time after the third policyanniversary subject to certain conditions. There will be no bid offer spread i.e. thesale and purchase price of units will be the same. The NAV shall be declared on dayto day basis.

Premium Payment options:The policy can be taken under the lump sum option or the regular premium option.ECS payment is also available.

92



Revival:

In case the policy is lapsed, it can be revived within a period of 2 years (RevivalPeriod), from the date of First Unpaid Premium. If the premiums have been paid for a

minimum period of three years, the Life cover will continue during the Revival Period.A unique feature of the plan is that a policyholder can opt for continuation of cover even beyond the Revival Period, without reviving the policy or paying any further premiums by exercising the option at least one month prior to the completion of theRevival Period. The policy cover continues by deduction of relevant charges from thepolicy fund till the fund value reaches one annualized premium.

Other Features:

The plan has other highlights like payment of additional amounts(top ups), attractiveFund Management/other charges and liberalized conditions for continuance of thepolicy in event of lapsation.

The minimum Sum Assured is five times the annualized premium and the maximumSum Assured can go upto 25 times the annualized premium, depending on age atentry. Premium can be paid in yearly, half yearly, quarterly or monthly( ECS ) modesand the minimum annualized premium is Rs.10,000/-. The plan offers upto four

switches free of charge every year, between the different types of funds.

With many attractive features, Child Fortune Plus is an ideal solution to meet thefinancial requirements arising at various stages like higher education and start up inlife, etc.

2.) CDA ENDOWMENT VESTING AT 18 :-

CHILDREN DEFFRED ENDOWEMENT ASSURANCE PLANS:-

Product Summary: This is an Endowment Assurance plan designed to enable aparent or a legal guardian or any near relative of the child (called proposer) toprovide insurance cover on the life of the child (called life assured). The plan has twostages, one covering the period from the date of commencement of policy to theDeferred Date (called deferment period) and the other covering the period from theDeferred Date to the date of maturity. The insurance cover on the child’s life startsfrom the Deferred Date and is available during the latter period. The Deferred Date incase of Plan No 41 is the policy anniversary date coinciding with or next following thedate on which the child completes 21 years of age. In case of Plan No 50 it is thepolicy anniversary date coinciding with or next following the 18th birthday of thechild.

93



Premiums:

Premiums are payable yearly, half-yearly, quarterly or monthly and this shall ceaseon the death of the life assured . Premiums are waived on death of Proposer provided this benefit is availed.

Bonuses:This is a with-profits plan and participates in the profits of the Corporation’s lifeinsurance business after the deferred date. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assuredannually at the end of each financial year. Once declared, they form part of theguaranteed benefits of the plan.

Death Benefit:

The Sum Assured along with vested bonuses is payable in a lump sum upon thedeath of the life assured after the defrayments period. If death occurs before thedefrayments period all premiumspaidisrefunded.

Maturity Benefit:

Sum assured along with all bonuses declared up to maturity date is payable in lumpsum.

Supplementary/Extra Benefits: These are the optional benefits that can beadded to your basic plan for extra protection/option. An additional premium isrequired to be paid for these benefits

Surrender Value:

Buying a life insurance contract is a long-term commitment. However, surrender values are available on the plan on earlier termination of the contract.

Guaranteed Surrender Value:

The policy may be surrendered after it has been in force for 3 years or more. Theminimum surrender value allowable under this policy is as under:

(a) Before the Deferred date : 90% of the premiums paid excluding the premium for the first year.

(b) After the Deferred date:

i)If deferment period is less than 10 years:

90% of the premiums paid before the deferment date excluding the premiums for the

94



first year plus 30% of premiums paid after the deferred date.

(ii) If deferment period is 10 years or more:

90% of a cash option plus 30% of premiums paid after the deferred date.

Corporation’s Policy on Surrenders:

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

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

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

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

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

Corporation reviews the surrender value payable under its plans from time to time

depending on the economic environment, experience and other factors.

The above is the product summary giving the key features of the plan. This is for

illustrative purpose only. This does not represent a contract and for details please

refer to your policy document.

STATUTORY WARNING:


the future performance of your insurer carrying on ife insurance business. If your


illustration table on this page. If your policy offers variable returns then theillustrations on this page will show two different rates of assumed future investment

returns. These assumed rates of return are not guaranteed and they are not the

upper or lower limits of what you might get back as the value of your policy is

dependent on a number of factors including future investment performance.

Table 41Age at entry: 10 years

Policy Term: 25 Years Deferment period: 11 yearsPremium Paying Term: 25 Years

95



Mode of premium payment: YearlySum Assured: Rs. 1,00,000 /-Annual Premium: Rs. 2673 /-

Note: The proposer will have the option to take a cash payment of Rs.39,890/- onthe Deferred Date on cancellation of the policy contract entirely.

Table 50)Age at entry: 10 yearsPolicy Term: 25 Years Deferment period: 8 yearsPremium Paying Term: 25 YearsMode of premium payment: Yearly

Sum Assured: Rs. 1,00,000 /-Annual Premium: Rs. 2924 /-

End

of year

Total

premiumspaid till end

of year




1 2673 2673 - - 2673 2673

2 5346 5346 - - 5346 5346

3 8018 8018 - - 8018 8018

4 10691 10691 - - 10691 10691

5 13364 13364 - 13364 133646 16037 16037 - - 16037 16037

7 18709 18709 - - 18709 18709

8 21382 21382 - - 21382 21382

9 24055 24055 - - 24055 24055

10 26728 26728 - - 26728 26728

12 2073 100000 2100 5500 102100 105500

15 40092 100000 8400 22000 108400 122000

20 53456 100000 18900 49500 118900 14950025 66819 100000 46400 122000 146400 222000

96



i)This illustration is applicable to a non-smoker male/female standard (from medical,

life style and occupation point of view) life.

ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that

they are consistent with the Projected Investment Rate of Return assumption of 6%

p.a.(Scenario 1) and 10% p.a.(Scenario 2) respectively. In other words, in preparing

this benefit illustration, it is assumed that the Projected Investment Rate of Return

that LICI will be able to earn throughout the term of the policy will be6% p.a. or 10%

p.a., as the case may be. The Projected Investment Rate of Return is not

guaranteed.

iii) The main objective of the illustration is that the client is able to appreciate the

features of the product and the flow of benefits in different circumstances with some

Endof

year

Totalpremiums




Scenario 1 Scenario 2 Scenario 1 Scenario 21 2924 2924 - - 2924 2924

2 5848 5848 - - 5848 5848

3 8772 8772 - - 8772 8772

4 11696 11696 - - 11696 11696

5 14620 14620 - 14620 14620

6 17544 17544 - - 17544 17544

7 20468 20468 - - 20468 20468

8 23392 23392 - - 23392 23392

9 26316 100000 2100 5500 102100 105500

10 29240 100000 4200 11000 104200 111000

12 35087 100000 8400 22000 108400 122000

15 43859 100000 14700 38500 114700 138500

20 58479 100000 25200 66000 125200 166000

25 73099 100000 46700 124500 146700 224500

97



level of

quantification.

GROUP INSURANCE:-

GROUP GRATUITY SCHEME:-

Under the Payment of Gratuity Act, 1972, it is employers statutory liability to pay 15

days salary (15/26 of a month's wages) for every completed years service to each of

his employees on their exit, for any reason after five years of continuous service,

subject to maximum limit of 3.5 lacs. Higher benefits can be paid if the employer so

desires. Gratuity payable to the employees can be paid as and when liability arises

and can be claimed as deduct able expense under P & L A/c of the relevant financial

years. However, the sound system of financial management envisages providing for

Gratuity liability every year and claiming the tax benefits as it is mandatory as per

Accounting Standards 15 (AS15) to account for the liability on Actual basis. This can

be done by creating a Trust, managed privately or by LIC and paying the amount to

the Trust every year. In case of Privately Managed Trust, investment of funds will

have to be done as per Income-Tax Act, by the trustees and entire administration of

the Trust including Actuarial Valuation will be the responsibility of the Trustees. In

case of LIC managed trust, the job of investment and actuarial valuation is taken

over by the corporation free of charge and in addition, interest is paid by the

Corporation on the accumulated funds.

We give below the details as to how the Group Gratuity (Cash Accumulation)Scheme provides for a convenient mode of funding the statutory obligation of an

employer under the payment of Gratuity Act:

ATTRACTIVE RETURN:

LIC offers a very attractive rate of interest depending upon the size of the fund

98



1. Employer’s ordinary annual contribution is allowed as deduction in full incomputation of business income as per Section 36(1) (v).

2. Employer's initial contribution.

No. limit on amount as per Rule 104.It is to be paid on the date of setting up of fund in full or in 5 yearly equated installments from such date. Deduction to be

allowed shall not exceed 8 1/3% of the past salaries as per Rule 104.Allowed as a

deduction in full in computation of business income as per Section 36 (1)(v).

3. Benefits to employees Employer's initial and ordinary annual contribution are

not treated as taxable perquisites.

4. Gratuity is payable in lump sum only as per Rule 3 of part C of Schedule IV.

5. Gratuity is salary and hence taxable, it is taxed under Sec. 17(i) (iii).

6. Gratuity is tax free up to half month's average salary (of last 10 months) for

each year of service, subject to a maximum of Rs. 3.5 lakhs as per Sec.

10(10).

7. While computing tax on gratuity, relief of spreading back available as per Sec.89(1).

8. Other matters.

a) Income of fund exempt from tax : Sec .10(25) (iv)

b) No. deduction is allowed for accounting provision made byEmployer for payment of gratuity

: Sec .40A(7) (a)

c) Deduction is allowed for provisionmade by Employer for payment of contribution to fund for payment for

gratuity that has become payable.

: Sec. 40 A(7) (b) (i)

d) Contribution by the employer shouldbepaid to the fund for claiming relief

: Sec. 43B

e) Persons deducting tax to furnishprescribed returns to I.T. authority

: Sec. 206

f) Investment of fund moneys - : Rule 67 or LIC'sgratuity SchemeRule 101

g) Admission of director to a fund-restricted to those owing not more : Rule 102

99



than 5% of voting rights

h) Amendment of rules of fund-C.I.T'sprior approval required

: Rule 110

Multi-Employer group are not allowed as per CBDT letter addressed to LIC.

The above scheme, attractive as it is, can be made a part of overall commitment of

any progressive employer wedded to Human Resource Development concept.

GROUP LEAVE ENCASHMENT SCHEME:-

Many employers are providing Leave Encashment benefit in addition to other

retirement benefits to their employees which are a lump sum amount payable to the

employees or their dependants on retirement, death, disablement, voluntary

retirement etc.

Funding of leave encashment:

End-of-the-year leave encashment facility available to employees can be a huge

liability to the company. So can be Medical Leave Encashment, if provided for. To

meet this need of entrepreneurs and businesses, LIC has introduced Group Leave

Encashment Scheme. Just pay a yearly premium, fund your leave encashment

liability and let LIC take care of your worries.

Nature of liability:

The amount depends upon the leave to the credit of the employee and his/ her

salary at the time of exit. Liability is of increasing nature as it is linked with salary as

well as leave position.

As per the amended section 209 (3) of the Company's Act 1956 and Accounting

Standard (AS-15) dated January, 1995, the employers have to account for the

liability in respect of leave encashment facility, if any, available to the employees and

to provide for the same in their Annual Accounts. It is, therefore, necessary for the

companies to ascertain liability in respect of Leave Encashment facilities, if any,available to the employees and provide for the same in the books of accounts every

100



year. It helps the employers in ascertaining the true cost of their products and

services.

The Features:

Group Leave Encashment Schemes (GLES) of LIC helps the employers in funding of

their lave encashment liability. The salient features of the scheme are as follows:-

1. The Company will submit the employees' data and rules for Leave

Encashment. LIC will make actuarial valuation and find out the funding

requirements which shall be quoted to the company. The company will

contribute as per the advice of LIC.

2. A uniform life cover per employee or graded cover will be provided under One

Year Renewable Group Term Assurance Plan of LIC. A small term insurance

premium will be charged in addition to contributions for funding.

3. A Running Account will be maintained under the scheme and the

contributions (excluding term assurance premium) will be credited to this

account and all claims except term assurance cover will be settled out of the

Running Account. Interest at the rate declared by LIC from time to time will be

credited to the Running Account at the end of the financial year.

Benefits:

On the exit of an employee or encashment of leaves during the service the LeaveEncashment amount will be paid from the Fund of the scheme maintained with LIC.

1. On the death of an employee, in addition to his / her leave encashment

benefit, his/her family will be entitled to the amount of Insurance Cover, which

will be tax-free.

2. The Life Insurance Corporation of India will do the Actuarial Valuation and will

provide necessary certificate as per AS-15.

3. The amount of Term Insurance Premium paid for Life Insurance Cover will betreated as business expenses.

101



ICICI PRUDENTIAL LIFE INSURANCE FIANNCIALPRODUCT

EDUCATION INSURANCE PLANS:-

One of your most important responsibilities as a parent is to ensure that your

child gets the best possible education that can be provided. ICICI Prudential

offers a wide portfolio of education insurance plans that are designed to

provide peace of mind to you, as a parent, that your child's education will be

secure. These plans ensure that money is made available at the crucial

junctures in a child's education - Class X, Class XII, graduation and post-

graduation - to fund crucial commitments for the child's future. Importantly,

education insurance plans ensure that in the unfortunate event of the death of

a parent, the child's education continues unhampered.

Under the education insurance plans platform, ICICI Prudential brings the following

products to you. Please click on the product name to know more about the plans.

Plan Name Plan Type

Smart Kid New Unit-linkedRegular Premium

Smart Kid New Unit-linkedSingle Premium

Smart Kid Regular Premium

Unit Linked

Unit Linked

Traditional

BENEFITS:-

Life insurance, especially tailored to meet your financial needs

Need for Life Insurance

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Today, there is no shortage of investment options for a person to choose from.

Modern day investments include gold, property, fixed income instruments, mutual

funds and of course, life insurance. Given the plethora of choices, it becomes

imperative to make the right choice when investing your hard-earned money. Life

insurance is a unique investment that helps you to meet your dual needs - saving for

life's important goals, and protecting your assets.

Let us look at these unique benefits of life insurance in detail.

Asset Protection

From an investor's point of view, an investment can play two roles - asset

appreciation or asset protection. While most financial instruments have theunderlying benefit of asset appreciation, life insurance is unique in that it gives the

customer the reassurance of asset protection, along with a strong element of asset

appreciation.

The core benefit of life insurance is that the financial interests of one’s family remain

protected from circumstances such as loss of income due to critical illness or death

of the policyholder. Simultaneously, insurance products also have a strong inbuilt

wealth creation proposition. The customer therefore benefits on two counts and life

insurance occupies a unique space in the landscape of investment options available

to a customer.

Goal based savings

Each of us has some goals in life for which we need to save. For a young, newly

married couple, it could be buying a house. Once, they decide to start a family, the

goal changes to planning for the education or marriage of their children. As one

grows older, planning for one's retirement will begin to take precedence.

Clearly, as your life stage and therefore your financial goals change, the instrument

in which you invest should offer corresponding benefits pertinent to the new life

stage.

2. WEALTH CREATION PLAN:-

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Wealth Creation Plans give the customer the dual benefit of protection along with the

potentially higher returns of market-linked instruments. The most important benefit

of ULIPs is the flexibility they give the customer in choosing the premium amount

and also choosing the underlying fund in which this money is to be invested. Wealth

creation plans also offer the customer more liquidity options as compared

to traditional plans. As such, ULIPs are ideal for customers who want the protection

of a life cover to be allied to the returns of market linked instrument – giving them an

unmatched combination of benefits.

Under the wealth creation platform, ICICI Prudential brings the following products to

you. Please click on the product name to know more about the plans.

Plan Name

Plan Type

Wealth Advantage

Life Stage Assure

Life Time Gold

Life Link Super

Premier Life GoldLife Stage RP

Unit Linked

Unit Linked

Unit Linked

Unit Linked

Unit Linked Unit Linked

BENEFITS:-

Life insurance, especially tailored to meet your financial needs

Need for Life Insurance

Today, there is no shortage of investment options for a person to choose from.Modern day investments include gold, property, fixed income instruments, mutual

funds and of course, life insurance. Given the plethora of choices, it becomes

imperative to make the right choice when investing your hard-earned money. Life




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Asset Protection

From an investor's point of view, an investment can play two roles - asset

appreciation or asset protection. While most financial instruments have the

underlying benefit of asset appreciation, life insurance is unique in that it gives the

customer the reassurance of asset protection, along with a strong element of asset

appreciation.

The core benefit of life insurance is that the financial interests of one’s family remain

protected from circumstances such as loss of income due to critical illness or death

of the policyholder. Simultaneously, insurance products also have a strong inbuilt

wealth creation proposition. The customer therefore benefits on two counts and life

insurance occupies a unique space in the landscape of investment options available

to a customer.

Goal based savings

Each of us has some goals in life for which we need to save. For a young, newly

married couple, it could be buying a house. Once, they decide to start a family, the

goal changes to planning for the education or marriage of their children. As one

grows older, planning for one's retirement will begin to take precedence.

Clearly, as your life stage and therefore your financial goals change, the instrument

in which you invest should offer corresponding benefits pertinent to the new life

stage. Life insurance is the only investment option that offers specific products tailor-

made for different life stages. It thus ensures that the benefits offered to the

customer reflect the needs of the customer at that particular life stage, and hence

ensures that the financial goals of that life stage are met.

PROTECTION PLAN:-

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The sole objective of these plans, as their name indicates, is to serve the protection

needs of the customer and by doing so, safeguard one’s family from the financial

implications of unfortunate circumstances than one cannot foresee.

Under the Protection Plans platform, ICICI Prudential brings to you the following

products:

Plan Name

Plan Type

Pure Protect

LifeGuard

Save'n'Protect

CashBak

Home Assure

Traditional

Traditional

Traditional

Traditional

Traditional

UNIT LINKED INSURANCE PLAN:-

LIFE STAGE PENSION PLAN:-

Retirement time is the time to live your dream, dream that you have been putting off

as you never had the time for it. But your retirement dream has a cost attached to it.

We call this your retirement number.

To help you achieve your retirement number ICICI Prudential presents to you, Life

Stage Pension. One of the most distinguishing features of this policy is that it has no

premium allocation charge for regular premiums which means 100% of your money

is invested. What’s more, the policy provides you with a unique lifecycle-based

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strategy that continuously re-distributes your money across various asset classes

based on your life stage and risk tolerance, eventually providing you with a

customized retirement solution. Invest today to attain your retirement number and

fulfill your dreams. Read more about the features and benefits of this unique pension

plan

LIFE STAGE PENSION AT GLANCE

Minimum/Maximum EntryAge

18 years to 70 years

Maximum Cover CeasingAge

80 years

Minimum/MaximumPolicy Term


Minimum/MaximumVesting Age 50 years to 80 years

Premium PaymentFrequency

Monthly, half-yearly, yearly

Minimum Premium Rs. 15,000 p.a.

Tax BenefitUnder Section 80CCC, as per prevailing IncomeTax laws on premium paid for base policy.

BENEFITS:-

Option to choose a unique and personalized lifecycle based portfolio strategy tocreate ideal balance between Equity and Debt. This plan invests 100% of your money in the portfolio of your choice Enjoy the flexibility to choose from 5 pensionoptions through which you can receive your pension. Opportunity to earn potentiallyhigher returns by investing in Unit Linked Funds. Receive tax-free commutation up toone-third of the accumulated value on vesting (retirement) date. Avail taxbenefits on premiums paid u/s 80CCC.

PREMIER LIFE PENSION:-

You have strived hard to achieve your dreams and have attained the best comfortslife could offer. After having reached this enviable and secure position, wouldn’t you

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like to continue living life on your own terms even after retirement? If you think so,then you need a retirement solution that not only suits your needs but also lets youretire RICH.

To help you achieve this, ICICI Prudential Life Insurance presents Premier Life

Pension Plan- a limited premium paying, unit-linked pension policy designed for preferred customers like you. This unique policy helps you customize your investments by allowing you to decrease your premium contributions as well asallowing you to boost your investment kitty by making top-ups at any time. Once youarrive at your retirement age the accumulated value of your policy provides you witha regular income (pension) for life.Premier Life Pension at a glance

Premium Payment Term

3 years 5 years

Minimum Premium

Rs 100000 Rs 60000

Minimum Entry Age

18 years 18 years

Maximum Entry Age

70 years 70 years

Minimum Policy Term 10 years 62 years

Maximum Policy Term

10 years 62 years

Maximum/Maximum Age atmaturity

50-80 years 50-80 years

Maximum Sum Assured

Zero Sum Assured Policy

Tax Benefit

Under Section 80 CCC, as per prevailingIncome Tax Laws on premium paid

BENEFITS:-

1. Flexibility of a limited premium payment term: pay premiums for only 3 yearsor 5 years.

2. Flexibility to decrease your premiums: reduce your premium contribution up to

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the minimum allowed under the chosen premium payment term from the 2nd year onwards.3. Flexibility to increase your investment:: invest your surplus money over and

above your premiums as top ups, at any time during the policy term.

4. Flexibility to choose your retirement date: choose to start receiving your

pension from anytime between 50-80 years, according to your requirement.

5. Choose from 7 investment funds to invest your money: select from 7 funds,

based on your financial goals and risk profile. You can switch funds 4 times a year,

at no cost. For subsequent switches you will be required to pay a switch fee of Rs.

100.

6. Enjoy the flexibility to choose from 5 pension options: through which you can

receive your pension.

7. Tax benefits: receive up to one-third of the accumulated value as a tax-free lump

sum on your retirement day. Also enjoy tax benefits on the premiums you pay

(under u/s 80 CCC) and tax exemptions on death benefits.

LIFE TIME SUPER PENSION:-

ICICI Prudential's LifeTime Super Pension policy is especially designed to help you

systematically save towards a joyful and satisfying retirement.

Life Time Super Pension Plan is a cost-effective pension plan that delivers great

value in the long run. A regular-premium unit-linked pension policy, LifeTime Super

Pension ensures you earn a fixed income, for your entire life after retirement. So

you can relax and live moments that truly matter.

Read more about the features and benefits of this unique pension plan.

Premier-Life Pension at a glance

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Maximum Cover CeasingAge

75 years

Minimum/Maximum PolicyTerm


Minimum/MaximumVesting Age


Premium PaymentFrequency

Monthly, half-yearly, yearly

Minimum Premium Rs. 10,000 per annum

Tax Benefit Under Section 80CCC, as per prevailing Income

Tax laws on premium paid for base policy

ICICI Prudential's LifeTime Super Pension policy is a regular-premium unit-linked

pension policy. When you invest in this policy, you provide yourself with a guarantee

that you will enjoy a fixed income-even when you are no longer working. Take a look

at the additional features of ICICI Prudential's Life Time

Super Pension policy:

5 annuity options: Pick one option based on how long you want your annuity to last

and the extent of coverage you want.

7 investment funds: Select among Flexi-Growth, R.I.C.H., Multiplier, Flexi-

Balanced, Balancer, Protector, and Preserver, based on your financial goals and risk

profile. You can switch funds 4 times a year, at no cost. For subsequent switches

you will be required to pay a switch fee of Rs. 100.

2 variations of Sums Assured: Opt for a Zero Sum Assured or a Sum Assured thatcan be chosen between a minimum of Rs. 1 lakh and maximum of the annualpremium multiplied by the policy term.Tax benefits: Receive up to one-third of the accumulated value as a tax-free lumpsum on your retirement day. Also enjoy tax benefits on the premiums you pay(under u/s 80 CCC) and tax exemptions on death benefits [under u/s 10 (10 D)].

LIFE LINK SUPER PENSION:-

ICICI Prudential's Life Link Super Pension Plan has been especially tailored for

individuals who would much rather make a lump-sum investment than pay premiums

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at regular intervals for their retirement planning. A cost-effective single

premium unit-linked pension policy, Life Link Super Pension Plan provides

potentially higher returns that ensure your golden years are secure and peaceful.

Invest in Life Link Super Pension Plan today and watch your money multiply every

month, right up to the day you retire. Receive an assured income from your

retirement day, for the rest of your life. Read more about the features and benefits of

this plan.

Read more about the features and benefits of this unique pension plan.

Life Link Super Pension at a glance

Minimum Premium

Rs. 25,000


18 years – 70 years

Minimum/Maximum Policy

Term

5 years – 57 years

Minimum/MaximumVesting Age


Tax Benefit Under Section 80 CCC, as per prevailing Income

Tax Laws on premium paid

BENEFITS:-

One-time lump sum payment: Make a single investment of as little as Rs. 25,000.

7 Investment funds: Select among Flexi-Growth, R.I.C.H., Multiplier, Flexi-Balanced, Balancer, Protector, and Preserver, based on your financial goals and riskprofile.

Pension options: Out of the five annuity options, pick one that will best suit your post-retirement requirements.

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Pre-decided retirement age: Determine the age at which you want to start receiving

your pensions. The minimum age of receiving pensions is 45 years.

Switch benefit: Switch between funds anytime to adjust your portfolio, based on

your goals and risk profiles. You can switch funds 4 times a year, at no cost. For

subsequent switches, you will be required to pay a switch fee of Rs. 100.

Tax benefits: Receive up to one-third of the accumulated value as a tax-free lump

sum on your retirement day. Also enjoy tax benefits on the premiums you pay (under

u/s 80 CCC).

LIMITATION

The following are the deficiencies or limitations of the study. The study is restricted to

only to INSURANCE COMPANIES

It is restricted to Life Insurance Corporation Of India and ICICIC PRUDENTIAL LIFE

CORPORATION hence the conclusion can be generalized

for all the LIFE INSURANCE COMPANY on one hand for the entire INSURANCE

sector on the other hand.

There can be differences in the monitoring system and policies among the different

Insurance Companies even they are following IRDA norms

This study restricted to only for study purposes not for .OTHER PURPOSES. The

whole data is collected in 40 DAYS.. This is for COLLEGE PURPOSES ONLY.

The whole study is based on LIFE INSURACE CORPORATION OF INDIA LTD AND

ICICI PURDENTIAL LIFE INSURANCE COMPANIES DIFFERENT PORTFOLIO

And Their Benefits with TAX.

DATA ANALYSIS AND INTERPRETATION

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DIFFERENT POLICIES BOUGHT BY THE CUSTOMER

INFERENCE:- In this histogram here different insurance plans are shown of different insurance companies like SBI, HDFC, TATA AIG, KOTAK MAHINDRA, INGVYASYA, LIC and ICICI. In this it is shown that which companies plan havemaximum NO. OF CUSTOMER.

CONCLUSION:- After analyzing the histogram it is easily concluded that LIC isthe major player in this insurance industry and the second big player is ICICI. Andthe plan which is the most preferable is the MONEY BACK PLAN and the secondhighest plan is WHOLE LIFE PLAN of LIC.

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0

5

10

15

20

25

30

35

N o . o f C u s t o m e r s

Term Plan Endowment Whole life Money Back Retirement Child Plan Unit Link Plan

Different Plans

LIC

ICICI

Birla

Sunlife

SBI

HDFC

Bajaj

Alliance

TATA

AIG

Kotak

Mahindr

aING



POTENTIAL OF LIFE INSURANCE

-

INFERENCE: This pie chart shows that Only 42 % people having life insurancebut among them 82% people are underinsurance and only 18% people are fullyinsured according to them income

CONCLUSION:- After analysing this pie chart it is concluded that there is

very less amount of people who are under insured that is only 18% people who arefully insured and rest 82% people are under insured.

MARKET SHARE OF DIFFERENT INSURANCE PLAN

Under insurable persons Fully insurable persons82% 18%

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Potential of life insurance

Fully Insured

18%

Under Insured

82%



INFERENCE:- In this pie chart market share captured by the differentinsurance plans has shown. That is different plans cover different market share liketerm plan-39%, money back plan-14%, endowment plan-15%, child plan-8%, and

unit linked plan-24%

CONCLUSION:- After studing this pie chart it is easily concluded that theleading plan in the market share coverage is TERM PLAN and the second is UNITLINKED INSURANCE PLANS.

DISCUSSION &FINDINGS OF THE STUDY

FINDINGS:

Insurance Plan Market Share

Term Plan 39%Money back Plan 14%Endowment Plan 15%Child Plan 8%Unit link Plan 24%

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Market share of diffrent Insurance plan

Endownment Plan

15%

Moneyback Plan

14%

Term Plan

39%

Unitlink plan

24% Child Plan

8%



After Finding’s we can see about LIC features and his The tendency to take the

expedient approach and focus on the far right of the LIC spectrum, Peacetime

Contingency Operations and conduct training as usual, while briefing that the LIC

block has been checked, will lead us to a possibly fatal false sense of security.

Instinctive behavior and ingrained training must be adjusted to fit new circumstances.

STXs must be developed locally or borrowed from units who have already been

through the training.

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 havedemonstrated that with a balanced training focus and proper preparation, manypitfalls outlined above can be avoided.

LIC is not conventional warfare. This is critical for the counterinsurgent tounderstand. The insurgent’s violent and coercive strategy is applied so as to achievepolitical, civil, military and psychological results. Hence, the counterinsurgent mustcounter all of these strategic elements individually. In addition, the target of theinsurgent’s violence and coercion is the population. This is because the population isthe centre of gravity in LIC. Therefore the counterinsurgent must also focus on thepopulation to be successful. In terms of military principles in counterinsurgency,

doctrinal precision, professionalism, independence, initiative, force precision,restraint, combined arms, precision engagement, joint force, effective populationbased intelligence, integrated communications, a civil affairs approach and highlevels of training are critical.

So we can say that so many merit’s and Demerit’s in life insurance Corporation of India.

SUGGESTION

1.) Life insurance has to expand their financial product base for service orientation.

2) Any company in life insurance has to come with shorter premium payment termplan related to life insurance investment.

3) Life insurance company have to be periodically monitored by central governmentofficially for a smooth effective running.

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4) Brand preference from the customer have to be taken into consideration for achieving customer satisfaction &enhancing the professional service related to lifeinsurance investment.

5) Management has to clear related its investment option when it comes to public

investment.

RECOMMENDATION

1) IRDA has to take steps in insuring maximum to maximum safety &clarity when itscomes to life insurance investment related to any company operated in India.

2) Company has to take step in order to improve the internal portfolio related to theinvestment of the public.

3) An insurance company has to improve on outstanding claim settlement ratiowhen it’s come to policy holder claims.

4) Insurance company has to improve on the internal infrastructure of theorganization for giving professional service to policy servicing.

5) Insurance companies have to work on corporate lines with IRDA & set aprofessional image in front of IRDA

ANNEXURE

QUESTIONNAIRE

Name-Age-Martial Status-No of Dependents-

1. Do you save?

119



Yes No

2. Are you aware that how insurance co’s manage portfolio of your investment

Yes No.

3. Current Value of your investment?

…..........................................................................................................................................

4. Current investment portfolio? (rank 1-5)

MF

Equity Trading

Fixed Deposit, Post Office Savings

Insurance(ULIP)

Bank savings

5. Objective of your investment?

...........................................................................................................................................

6. Time Horizon in which you have to achieve your financial goal?/how long do you plan to invest your money?

a. Under 2 yrsb. 2-5 yrs

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c. 6-10 yrsd. 11-15 yrse. Over 15 yrs

7. What factors would you consider most important before choosingan investment?

a. How quickly i will be able to increase my wealth.b. The opportunity for steady growth.c. The amount of monthly income the investment will generate.d. The safety of my investment principal.

8. Most preferred form of investment?

ULIP MF Equity TradingF.D, P.O

Bank savings

9. And Why?

…..........................................................................................................................................

BIBLIOGAPHY

IMPORTANT WEBSITE:-

WWW.LICINDIA.COM

WWW.ICICIPRULIFE.COM WWW.GOOGLE.CO.IN

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WWW.WIKIPEDIA.ORG

News Paper

Business standard

Times of India

Economic times

Hindustan times

Magazine

Outlook Express

Business today

Finance & Banking

Money Outlook

Documents

final project reoport