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HISTORY OF INSURANCE SECTOR

In India prior to nationalization, general insurance business was conducted by life insurance companies also but after nationalization in 1972, consequent upon passing of the General Insurance Business Nationalization Act (GIBNA) General Insurance Corporation of India was formed and was conferred the exclusive power to regulate and conduct the business of General Insurance in India. Since 1973 the GIC and its four subsidiary companies namely New India Assurance Co. Ltd., National Insurance Co. Ltd., Oriental Insurance Co. Ltd., and United India Insurance Co. Ltd. had been the sole players in the field until the passing of the IRDA Act 1999 which allowed the entry of private players. Over the past few years a few private players have entered the arena. The new players have entered the General Insurance field but are playing cautiously. These are still early days but the field is wide open, the future is bright and the customer is the one who will be benefited the most by the growing competition. We hope to see international level of service and products in the country soon and a multiple choice to select from.

HOW THE INSURANCE COMPANY DOES OPERATES?

The insurance company operates by collecting

small contributions from many people who are exposed to risks. This money collected is used to settle those who fall victim of such risks. These contributions which the insurance company collects are called premium.

INTRODUCTION TO INSURANCE
Insurance is a contractual arrangement that provides for compensation by an insurer to an insured part if a specify set of circumstances occurs. These circumstances could be accident, personal injury, death, loss or damage to property or any other number of instances that can compensate for financially. Life is full of risks. Insurance can provide security against some of these risks. For example, motor insurance provides cover for certain costs resulting from a road accident or the theft of a car. A contract of insurance involves the insured making a payment, (a premium) to an insurer. In return for the premium the insurer agrees to provide the insured with cover for certain types of losses arising from specified events. For example, a policy of household insurance might provide cover for damage to a house in the event of a fire. When you buy insurance, it means that you are sharing your risk with others. Simply, the insurance company is a risk management company that can help anyone to reduce risks associated in day to day activities. Man is vulnerable to dangers and by virtue of this need insurance to help him cope in an unfriendly world. Another thing you have to know when buying insurance is insurance policy. The insurance policy is the rule or guideline of the insurance company. It is the insurance policy that will help you to choose a better option for your insurance needs.

CHARACTERISTICS OF INSURANCE
The insurance has the following characteristics which are, generally observed in case of life, marine, fire and general insurances. Sharing of Risk:Insurance is a device to share the financial losses which might befall on an individual or his family on the happening of a specified event. The event may be death of a bread-winner to the family in the case of life insurance, marine-perils in marine insurance, fire in fire insurance and other certain events in general insurance, e.g., Theft in burglary insurance, accident in motor insurance, etc. The loss arising nom these events if insured are shared by all the insured in the form of premium. Co-operative Device:The most important feature of every insurance plan is the co-operation of large number of persons who, in effect, agree to share the financial loss arising due to a particular risk which is insured. Such a group of persons may be brought together voluntarily or through publicity or through solicitation of the agents. An insurer would be unable to compensate all the losses from his own capital. So, by insuring or underwriting a large number of persons, he is able to pay the amount of loss. Like all cooperative devices, there is no compulsion here on anybody to purchase the insurance policy.

 Value of Risk:The risk is evaluated before insuring to charge the amount of share of an insured, herein called, consideration or premium. There are several methods of evaluation of risks. If there is expectation of more loss, higher premium may be charged. So, the probability of loss is calculated at the time of insurance.

Payment at Contingency:The payment is made at a certain contingency insured. If the contingency occurs, payment is made. Since the life insurance contract is a contract of certainty, because the contingency, the death or the expiry of term, will certainly occur, the payment is certain. In other insurance contracts, the contingency is the fire or the marine perils etc., may or may not occur. So, if the contingency occurs, payment is made, otherwise no amount is given to the policy-holder. Similarly, in certain types of life policies, payment is not certain due to uncertainty of a particular contingency within a particular period. For example, in term-insurance then, payment is made only when death of the assured occurs within the specified term, may be one or two years. Similarly, in Pure Endowment payment is made only at the survival of the insured at the expiry of the period.

 Amount of Payment:The amount of payment depends upon the value of loss occurred due to the particular insured risk provided insurance is there up to that amount. In life insurance, the purpose is not to make good the financial loss suffered. The insurer promises to pay a fixed sum on the happening of an event. If the event or the contingency takes place, the payment does fall due if the policy is valid and in force at the time of the event, like property insurance, the dependents will not be required to prove the occurring of loss and the amount of loss. It is immaterial in life insurance what was the amount of loss at the time of contingency. But in the property and general insurances, the amount of loss as well as the happening of loss, are required to be proved. Large Number of Insured Persons:To spread the loss immediately, smoothly and cheaply, large number of persons should be insured. The co-operation of a small number of persons may also be insurance but it will be limited to smaller area. The cost of insurance to each member may be higher. So, it may be unmarketable. Therefore, to make the insurance cheaper, it is essential to insure large number of persons or property because the lesser would be cost of insurance and so, the lower would be premium. In past years, tariff associations or mutual fire insurance associations were found to share the loss at cheaper rate. In order to function successfully, the insurance should be joined by a large number of persons.

 Insurance is not a gambling:The insurance serves indirectly to increase the productivity of the community by eliminating worry and increasing initiative. The uncertainty is changed into certainty by insuring property and life because the insurer promises to pay a definite sum at damage or death. From a family and business point of view all lives possess an economic value which may at any time be snuffed out by death, and it is as reasonable to ensure against the loss of this value as it is to protect oneself against the loss of property. In the absence of insurance, the property owners could at best practice only some form of self-insurance, which may not give him absolute certainty. Similarly, in absence of life insurance, saving requires time; but death may occur at any time and the property, and family may remain unprotected. Thus, the family is protected against losses on death and damage with the help of insurance. Failure of insurance amounts gambling because the uncertainty of loss is always looming. In fact, the insurance is just the opposite of gambling. In gambling, by bidding the person exposes himself to risk of losing, in the insurance; the insured is always opposed to risk, and will suffer loss if he is not insured. By getting insured his life and property, he protects himself against the risk of loss. In fact, if he does not get his property or life insured he is gambling with his life on property.

 Insurance is not Charity:Charity is given without consideration but insurance is not possible without premium. It provides security and safety to an individual and to the society although it is a kind of business because in consideration of premium it guarantees the payment of loss. It is a profession because it provides adequate sources at the time of disasters only by charging a nominal premium for the service.

TYPES OF INSURANCE

Life insurance:Descendant's family receives financial benefits. Life insurances also offer paid proceeds to the beneficiary.

Automobile insurance:Usually automobile insurances cover damages and legal financial expenditures of the automobile driver.

Health insurance:Health insurance cover the expenditures associated to treatment and medical expenditures.

Credit insurance:Borrowers often fail to repay debts,loans and mortgages due to certain unavoidable circumstances,credit insurances can be of great help during such crisis.

Property insurance:Property protection insurance providesprotection from risks associated to theft,fire,floods etc.

This type of insurance can be further classified into specialized forms as follows:Fire Insurance Earthquake Insurance Flood Insurance Home Insurance Boiler Insurance

FUNCTIONS OF INSURANCE
The functions of insurance can be studied into two parts: (i) (ii) Primary Functions Secondary Functions.

1.

Primary Functions:Insurance provides certainty:

Insurance Provides certainty of payment at the uncertainty of loss.

The uncertainty of loss can be reduced by better planning and administration. But, the insurance relieves the person from such difficult task. Moreover, if the subject matters are not adequate, the selfprovision may prove costlier. There are different types of uncertainty in a

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risk. The risk will occur or not, when will occur, how much loss will be there. In other words, there are uncertainty of happening of time and amount of loss. Insurance removes all these uncertainty and the assured is given certainty of payment of loss. The insurer charges premium for providing the said certainty.

2.

Insurance provides protection:-

The main function of the insurance is to provide protection against the probable chances of loss. The time and amount of loss are uncertain and at the happening of risk, the person will suffer loss in absence of insurance. The insurance guarantees the payment of loss and thus protects the assured from sufferings. The insurance cannot cheek the happening of risk but can provide for losses at the happening of the risk.

3.

Risk-Sharing:-

The risk is uncertain, and therefore, the loss arising from the risk is also uncertain. When risk takes place, the loss is shared by all the persons who are exposed to the risk. The risk sharing in ancient time was done only at time of damage or death, but today, on the basis of probability of risk, the share is obtained from each and every insured in the shape of premium without which protection is not guaranteed by the insurer.

Secondary Functions:Besides the above primary functions, the insurance works for the

following functions: 1.

Prevention of loss:-

The insurance joins hands with those institutions which are engaged in preventing the losses of the assured and so more saving is possible which

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will assist in reducing the premium. Lesser premium invites more business and more business causes lesser share to the assured. So again premium is reduced to, which will stimulate more business and more protection to the masses. Therefore, the insurance assist financially to the health organization, fire brigade, educational institution and other organizations which are engaged in preventing the losses of the masses from death or damage. 2.

It provides Capital:-

The insurance provides capital to the society. The accumulated funds are invested in productive channel. The dearth of capital of the society is minimized to a greater extent with the help of investment of insurance. The industry, the business & the individual are benefited by the investment & loans of the insurers.

3.

It improves Efficiency:-

The insurance eliminates worries and miseries of losses at death and destruction of property. The care-free person can devote his body & soul together for better achievement. It improves not only his efficiency, but the efficiencies of the masses are also advanced. 4.

It helps Economic Progress:-

The insurance by protecting the society from huge losses of damage, destruction and death. Provides an initiative to work hard for the betterment of the masses. The next factor of economic progress, the capital, is also immensely provided by the masses. The property, the valuable assets, and the man the machine & the society cannot lose much at the disaster.

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INSURANCE IN INDIA
Currently, a US$41 billion industry, India is the world's fifth largest life insurance market and growing at a rapid pace of 32-34% annually as per Life InsuranceCouncil studies. India insurance is a flourishing industry, with several national and international players competing and growing at rapid rates. Thanks to reforms and the easing of policy regulations, the Indian insurance sector been allowed to flourish, and as Indians become more familiar with different insurance products, this growth can only increase, with the period from 2010 - 2015 projected to be the 'Golden Age' for the Indian insurance industry.

HISTORY
The Indian Constitution has a framework within which ample provisionsexist for the protection, development and welfare of children. Thereare a wide range of laws that guarantee children their rights andentitlements as provided in the Constitution and in the UNConvention. It was during the 50s decade that the UN Declaration of theRights of the Child was adopted by the UN General Assembly. ThisDeclaration was accepted by the Government of India. As part of thevarious Five Year Plans, numerous programs have been launched by the Government aimed at providing services to children in the areas ofhealth, nutrition and education.

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In 1974, the Government of Indiaadopted a National Policy for Children, declaring the nation'schildren as `supremely important assets'.This policy lays downrecommendations for a comprehensive health programs, supplementarynutrition for mothers and children, nutrition education for mothers,free and compulsory education for all children up to the age of 14,non-formal preschool education, promotion of physical education andrecreational activities, special consideration for the children ofweaker sections of the population like the scheduled castes and theschedule tribes, prevention of exploitation of children and specialfacilities for children with handicaps. The policy provided for aNational Children's Board to act as a forum to plan, review andcoordinate the various services directed toward children. The Board was first set up in 1974.The Department of Women and Child Developmentwas set up in the Ministry of Human Resource Development in 1985. TheDepartment, besides ICDS, implements several other programs,undertakes advocacy and inter-sectoral monitoring catering to theneeds of women and children. In pursuance of this, the Departmentformulated a National Plan of Action for Children in 1992. TheGovernment of India ratified the Convention on the Rights of the Childon 12 November 1992.By ratifying the Convention on the Rights of the Child, the Governments obligated "to review National andStatelegislation and bring it in line with provisions of theConvention".The Convention revalidates the rights guaranteed tochildren by theConstitution of India, and is, therefore, a powerfulweapon to combat forces that deny these rights.The Ministry of Womenand Child Development has the nodal responsibility of coordinating theimplementation of the Convention. Since subjects covered under theArticles of the Convention fall within the purview of

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variousdepartments/ ministries of the Government, the InterMinisterialCommittee set up in the Ministry with representatives from theconcerned sections monitor the implementation of the Convention, attheprovincial level. The State Governments have to assimilate - in letterand spirit - the articles of the Convention on the Rights of the Childinto their State Plans of Action for Children.A number of schemes forthe welfare and development of children have been strengthened andrefined with a view to ensuring children their economic, political andsocial rights. The Convention has been translated into most of theregional languages for dissemination to the masses.

CHILD PLAN
The policy is in two stages: Covering the period from the date of commencement of the policy to the deferred date. Covering the period from the deferred date to the date on which the policy emerges as a claim either by death or on maturity.

Child plan is a plan which enables a parent or a legal guardian or a relative of the child to provide a sum for the child by way of a very low premium.

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WHY CHILD INSURANCE

Planning does not necessarily mean about what you wish your child would grow up to be, or have certain characteristics, but it also essentially means you as a responsible parent having various obligations to fulfill that would help him to grow better in this world. To provide good Education (Graduation as well as Post Graduate). Secures the childs future in case of any unfortunate event. Marriage. Seed capital for business.

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Child plans come in two broad variants

TRADITIONAL PLAN ULIPS
TRADITIONAL CHILD PLANS:Traditional plans invest a major portion of their money in debt instruments like corporate bonds and government securities (as specified by the regulator). It carries relatively lower risk since it is invested mainly in corporate bonds and government securities. The bonuses are stable and give the parent considerable comfort knowing roughly how much he can expect. Regular endowment plans are suited for parents with a low risk appetite.

UNIT LINKED INSURANCE PLANS (ULIPS):-

ULIPs can invest across equity and debt markets in varying proportions. Parents with some risk appetite can opt for a ULIP child plan that invests across equity and debt markets. The reason why ULIP child plans can prove to be significant is because over the long-term (15-20 years), equities can add considerably to the corpus you plan to build for your child's needs.

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Equities are best placed to beat inflation over the long term. However, to achieve this, one must invest wisely.

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CHILD POLICY PROVIDED BY LIC

JEEVAN ANURAG
LIC JEEVAN ANURAG:LIC JEEVAN ANURAG Plan (Table 168) is a plan designed specifically to take care of your childs education needs. In this plan, you get an Assured Benefit and Death Benefit. On death of the Life Insured, the Sum Assured is paid immediately to the nominee and all future premiums are waived off, but the policy continues. Payment of 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity, and on maturity the remaining 40% of the Sum Assured along with the bonus would also be paid, irrespective of whether the life insured is alive or not.

Features of LIC JEEVAN ANURAG :-

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 Double benefit plan with both Survival and Death benefits 20 % of Sum assured will be paid in the last 3 policy years. 40 % of Sum assured with Bonus will be paid on maturity. In case of death of the life assured, a Sum assured will be paid immediately and the policy continues with future premiums waived.

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LIC JEEVAN ANURAG Eligibility Conditions : Minimum

Sum Assured (in Rs.) Policy Terms (in years) Premium Payment Term (in years) Entry Age of Life Insured Age of Maturity Payment Modes Policy Term - 3

Maximum No Limit 25

50000 10

20 Monthly and SSS

60 70

Single, Yearly, Half-yearly, Quarterly,

Benefits of LIC JEEVAN ANURAG :

Maturity Return 20% of Sum assured will be paid on the last 3 years of policy term 40 % of Sum assured with Bonus will be paid on policy maturity. Death Benefit In case of death of the Life Insured, the nominee would get the Sum Assured immediately. The future premiums would be waived and the policy will continue. Maturity benefit will be given irrespective of either life insured survives or not.

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Income Tax Benefit Available under Section 80 C for premiums paid and Section 10 (10D) or Maturity returns.

Loan on Policy - Not Available

Housing Loan Surity - Not Available

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CDA ENDOWMENT VESTING AT 21

CDA ENDOWMENT VESTING AT 21:
LIC Children Deferred Endowment Assurance Plan Vesting at 21
LIC CDA Plan Vesting at 21 is a child insurance policy such that the premium is paid till the child reaches 21 years of age and then child becomes the owner of the policy. If the child dies within the policy tenure after risk commencement, then the Sum Assured along with Guaranteed Additions are paid and the policy is terminated.

Key Features of LIC CDA Plan Vesting at 21:This plan can be done by the childs parents or grandparents or any near relative. There are 2 stages of this plan- the Deferment Period and the period after the Deferred Date Risk starts on the Deferred Date, i.e. 21 years of the Life Insured in this policy. No Medical Tests are required where the Deferment Period is 10 years or more. Loyalty or Terminal Bonus is payable on death or maturity.

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An Additional Premium Waiver Benefit rider can be taken along with this plan.

Benefits you get from LICs CDA Plan Vesting at 21:Death Benefit If the Life Insured, i.e. the Child dies after the Deferment Date, then Sum Assured + Bonuses are paid. If the Life Insured, i.e. the Child dies before the Deferment Date, the sum of premiums are paid back. If the proposer, i.e. Parent or Grand Parent or Near Relative dies before the Deferment Date, the premium payment must be continued. However if Premium Waiver Benefit has been opted for, then the insurer would pay the premium on behalf of the deceased parent. Maturity Benefit Sum Assured + All Bonuses are payable in a lumpsum. Income Tax Benefit Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D).

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Eligibility in LICs CDA Plan Vesting at 21:Minimum Sum Assured (in Rs.) Policy Term (in years) Premium Payment 50,000 13 Maximum 1 Crore 50

Term (in years) Entry Age of Life 0 17

Insured (Child) Age at Maturity (in

years)

30

60

Single premium (in Rs.) NA

Additional Features and Benefits of LIC CDA Plan Vesting at 21:Riders - There are 2 riders available with this plan: 1. Premium Waiver Benefit Rider. 2. Accidental Benefit Rider.

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Surrender The Policy Surrender of policy is allowed only after completion of 3 years or more. The Guaranteed Surrender Value before the Deferred Date is 90% of the premiums paid excluding the premiums paid during the first year. 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 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. Loan Against Your Policy Loan in not available under this plan.

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CDA Endowment Vesting At 18

CDA Endowment Vesting At 18
LIC Childrens Deferred Endowment Assurance Plan Vesting at 18:LICs CDA Plan Vesting at 18 is a child policy such that the premium is paid till the child reaches 18 years of age and then child becomes the owner of the policy. If the child dies within the policy tenure after risk commencement, then the Sum Assured along with Guaranteed Additions are paid and the policy is terminated.

Key Features of LICs CDA Plan Vesting at 18:

grandparents or any near relative. - the Deferment Period and the period after the Deferred Date Risk starts on the Deferred Date, i.e. 18 years of the Life Insured in this policy. No Medical Tests are required where the Deferment Period is 10 years or more. Loyalty or Terminal Bonus is payable on death or maturity. An Additional Premium Waiver Benefit rider can be taken along with this plan.

Benefits get from LICs CDA Plan Vesting at 18:Death Benefit

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 If the Life Insured, i.e. the Child dies after the Deferment Date, then Sum Assured + Bonuses are paid. If the Life Insured, i.e. the Child dies before the Deferment Date, the sum of premiums are paid back. If the proposer, i.e. Parent or Grand Parent or Near Relative dies before the Deferment Date, the premium payment must be continued. However if Premium Waiver Benefit has been opted for, then the insurer would pay the premium on behalf of the deceased parent. Maturity Benefit Sum Assured + All Bonuses are payable in a lumpsum. Income Tax Benefit Premiums paid under life insurance policy are exempted from tax under Section 80 C and maturity proceeds are exempted from tax under Section 10 (10D).

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Eligibility in LICs CDA Plan Vesting at 18:Minimum Sum Assured (in Rs.) Policy Term (in years) Premium Payment Term (in years) Entry Age of Life Insured (Child) Age at Maturity Single premium (in Rs.) Payment modes 0 30 NA Yearly, Half-yearly, Quarterly 14 60 50,000 11 Maximum 1 Crore 50

Additional Features and Benefits of LICs CDA Plan Vesting at 18:Riders- There are 2 riders available with this plan: 1. Premium Waiver Benefit rider 2. Accidental Benefit.

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Surrender The Policy Surrender of policy is allowed only after completion of 3 years or more. The Guaranteed Surrender Value before the Deferred Date is 90% of the premiums paid excluding the premiums paid during the first year. After the Deferred Date, If deferment period is less than 10 years: 90% of the premiums paid before the deferment date excluding the premiums for the first year plus 30% of premiums paid after the deferred date. If deferment period is 10 years or more: 90% of a cash option plus 30% of premiums paid after the deferred date.

Loan Against Your Policy Loan in not available under this plan.

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LIC JEEVAN KISHORE

LIC JEEVAN KISHORE
LIC JEEVAN KISHORE (Table 102) is an endowment assurance plan that can be purchased by either the parent or grandparent for a child. Under this LIC policy, the risk cover starts either after 2 years of the beginning of the policy or after 7 years of age of the child assured whichever is later. Sum assured with bonus will be paid on policy maturity. The proposer can further secure his childs future by opting for Premium Waiver Benefit rider, such that if he dies before the policy matures, then the future premiums would be waived.

Features of LIC JEEVAN KISHORE:Risk on a childs life commences after 2 policy years or the child attains 7 years of age, whichever is later. On Maturity the Life Insured or his nominee would receive the Sum Assured + Bonus. There are additional riders like Premium Waiver Benefit which can be availed by the proposer and Accidental Death Benefit rider that can be availed by the child after he is 18 years old.

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LIC JEEVAN KISHORE Eligibility Conditions :

Minimum Sum Assured (in Rs.) Policy Term (in years) Premium Payment 50,000 15 Equal to Policy Term Maximum 40,00,000 35

Term(in years) Entry Age of Life Insured Age at Maturity Payment modes

0 20

12 45

Yearly, Half-yearly and Quarterly

Benefits of LIC JEEVAN KISHORE:Maturity Return Sum assured with Bonus will be paid on policy maturity. Death Benefit On the death of the child after the commencement of risk, the nominee Would get the Sum assured with Bonus. If the child expires before the commencement of risk, the nominee will get only the premiums paid.

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Income Tax Benefit Available under Section 80 C for premiums paid and Section 10 (10D) for Maturity returns. Loan on Policy - Not Available Housing Loan Surety - Not Available

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CHILD CAREER PLAN

CHILD CAREER PLAN
LIC Child Career Plan (Table 184) provides funds at regular yearly intervals for professional or higher education and start-in-life in the form of 6 money back installments commencing from minimum age of 18 years. So your child will get money when they really need it. Under Childs Career Plan, the premium need not be paid for the last 5 years of the policy term. Maturity benefit will be paid back in the last 6 years of the policy term. 30% of Sum assured with Vested Bonus will be paid in the 1st of the 6 years. It will be followed by 15 % of Sum assured in the next 4 years. At the end of the policy term, 15 % of Sum assured with Terminal Bonus will be paid.

Features of LIC Child Career Plan :

The Risk cover on the child extends to 7 years after the maturity of the policy. The risk starts from the age of 5 years of the child. The maturity benefit will be paid for the last 6 years of the policy term. Vested Bonus will be paid with 1st year of maturity benefit. Final additional Bonus will be paid with the last year maturity benefit.

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LIC Child Career Plan Eligibility Conditions:

Minimum Sum Assured (in Rs.) Policy Term (in years) Premium Payment 1,00,000 11 Policy term - 5 Maximum 1 Crore 27

Term(in years) Entry Age Insured Age at Maturity Payment modes of Life

0 23

12 27

Yearly, Half-yearly, Quarterly and SSS

Benefits of LIC Child Career Plan :

Maturity Return Maturity benefit will be paid for the last 6 of the policy years. 30 % of Sum assured with Vested Bonus will be paid on 1st of 6 years. 15 % of Sum assured will be paid for the next 4 years. 15 % of Sum assured with Final Additional Bonus will be paid on policy maturity. Death Benefit

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 On the death of the child after the commencement of risk, the nominee would get the Sum assured with Bonus. However if the child expires before the commencement of risk, the nominee will get only the premiums paid with 3 % p.a. compounded interest on it If the child expires after receiving the maturity benefit, Sum assured will be paid. Income Tax Benefit Available under Section 80 C for premiums paid and Section 10 (10D) for Maturity returns. Loan on Policy - Not Available Housing Loan Surity-Not Available

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JEEVAN ANKUR
LIC JEEVAN ANKUR:LIC JEEVAN ANKUR (Table 807) is a child benefit endowment plan. This plan is specially designed to meet the Child's future requirements either the parent is alive or not. If you are a parent of a child of below 17 yrs old, then JEEVAN ANKUR is the best policy you can take. In this plan, the parent is The life insured and the child should be the nominee. In this plan, the premium needs to be paid till the end of the policy term. The Sum assured with the Bonus will be paid to the child at the end of the policy term irrespective of whether the parent is alive or not. If the parent dies within the policy tenure, Sum assured will be paid as immediate death benefit. From then, 10 % of the Sum assured will be paid to the child every year as income benefit and future premiums are waived i.e. No need to pay any premium after the death of the life insured. At the end of the policy tenure, Sum assured with the accured bonus will be paid to the child as maturity benefit.

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Features of LIC JEEVAN ANKUR: In this plan, the parent life will be insured and the child shall be the nominee. Sum assured with Loyalty Additions will be paid on policy maturity. On the death of life insured within the policy term : Sum assured will be immediately paid to the child. Future premiums are waived. So no premium needs to be paid after that. 10% of Sum assured will be paid to the child every year, starting from the next year of parent's expiry. Sum assured with Loyalty Addition (Bonus) will be paid at the end of the policy term.

LIC JEEVAN ANKUR Eligibility Conditions :Minimum Sum Assured (in Rs.) 1,00,000 Maximum No Limit 25

Policy Term (in years) 18 Premium Payment Equal to Policy term

Term(in years) Entry Age of Life Insured Entry Age of Child Age at Maturity Payment modes

18 0 -

50 17 75

Single, Yearly, Half-yearly, Quarterly and SSS

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Benefits of LIC JEEVAN ANKUR:-

Maturity Return Sum assured with Loyalty additions (Bonus) will be paid irrespective of the life insured is alive or not.

Death Benefit On death of the life insured ie., the Parent, Sum assured will be paid to the child immediately. Then 10 % of Sum assured will be paid to the child on every policy anniversary till the policy matures.

Income Tax Benefit Available under Section 80 C for premiums paid and Section 10 (10D) for Maturity returns.

Loan on Policy - Not Available

Housing Loan Surety-Not Available

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KOMAL JEEVAN
LIC KOMAL JEEVAN:KOMAL JEEVAN (Table 159) is a children's Money back plan in which the maturity returns will be paid after the child attains 18, 20 , 22, 24 and 26 yrs. This plan can be bought by any of the parents or grandparent of the child. In most cases, Father would be the proposer. If mother has her own income, then mother can also propose the policy. This policy can also be gifted by uncles , grandparents or elder brothers and sisters. But in these cases, either the mother or father should be the proposer. Here, the premium needs to be paid only till the child attains 18 yrs old. There is a guaranteed addition of Rs.75 per 1000 sum assured per year.

Features of LIC KOMAL JEEVAN: Money back child plan with guaranteed addition of Rs.75 per 1000 S.A. Premium payment stops immediately after the child attains 18 years of age. Risk coverage commences after 2 years from the commencement of the policy and the child should have completed 7 years of age.

An optional Premium Waiver Benefit can be opted with some extra

cost.

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LIC KOMAL JEEVAN Eligibility Conditions :Minimum Sum Assured (in Rs.) 1,00,000 Policy years) Premium Payment Term (in 26 - Age of Child Maximum 25,00,000

Term(in years) Entry Age of Life Insured Age at Maturity Payment modes

18 - Age of Child

0 26

10

Single, Yearly, Half-yearly, Quarterly and SSS

Returns of LIC KOMAL JEEVAN :Maturity Return:o 20% of Sum assured at 18 years of age o 20 % of Sum assured at 20 years of age o 30 % of Sum assured at 22 years of age o 30 % of Sum assured at 24 years of age o Guaranteed Additions with Loyalty additions will be paid at 26 yrs of age

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Death Benefit: On the death of the child after the commencement of risk, the nominee would get the Sum assured with Guaranteed and Loyalty additions without deducting any earlier payments made. If the child expires before the commencement of risk, the nominee will get only the premiums paid.

Income Tax Benefit:Available under Section 80 C for premiums paid and Section 10 (10D) for Maturity returns. Loan on Policy: - Not Available

Housing Loan Surety: - Not Available

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Marriage endowment or educational annuity plan

Marriage Endowment / Education Annuity Plan (Plan No. 90):This is an endowment plan for children. The purpose of this policy is to arrange for childs marriage or higher education. This policy helps parents to fulfill their objective of childs marriage / higher education even if they are not alive. The maturity amount under this policy can be taken lump-sum or in 10 installments of six months each. This is an insurance plan on parents life where child is the beneficiary or nominee.

Features of LIC Marriage endowment or educational

annuity plan
Lowest premium among plans for children Inbuilt Premium Waiver Benefit (PWB) Double Accidental Benefit Option to get maturity returns in 10 installments of six months each or in lump-sum Double Tax Benefit Loan can be taken against the policy @9% interest

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LIC Marriage endowment or educational annuity plan Eligibility Conditions

Minimum age at entry Maximum age at entry Minimum Term Maximum Term Maximum age at maturity Minimum sum assured Maximum sum assured 18 years 60 years 5 years 25 years 70 years Rs 50,000.00 No higher limit

Double Tax BenefitU/S 80 C: Premiums paid under this plan are eligible for tax Rebate u/s 80C U/S 10(D): Maturity Returns / Death claim amount is also tax free u/s 10 (D) Possible Events during policy duration On Death If the policy holder dies during the policy term, all future premiums will be waived off and the policy will continue as usual. The maturity returns will be paid to the nominee on completion of the policy term. On Accidental Death In case, the policy holder dies due to an accident, the accidental sum assured will be immediately given to

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the nominee and all future premiums will be waived off. The policy will still continue as usual. The maturity returns will be paid to the nominee at end of the policy term. On Maturity the nominee will get the Sum Assured along with the accrued bonuses. The maturity amount can be taken lump-sum or in 10 installments of six months each.

Possible EventsOn DeathIf Mr. Sandeep dies during the policy term, all future premiums will be waived off and the policy will continue as usual. At the end of the policy term, his nominee will receive the sum assured along with the accrued bonuses. On Accidental DeathIn case, Mr. Sandeep dies due to an accident, his nominee will receive the accidental sum assured (Rs 2,00,000.00) immediately and all future premiums will be waived off. The policy will continue as usual. At the end of the policy term his nominee will receive the sum assured along with the accrued bonuses. On MaturityIf Mr. Sandeep survives till the policy end date, he will receive the sum assured along with the accrued bonuses.

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JEEVAN CHHAYA
LIC JEEVAN CHHAYA:LIC JEEVAN CHHAYA (Table 103) is a Money back child endowment plan, that is meant to meet the requirements of the child either the parent is alive or not. This policy can also be taken by bachelors. In this plan, the maturity benefit will be paid to the nominee on the last 4 years of the policy term irrespective of whether the life insured is alive or If the life insured dies within the policy tenure, Sum assured will be paid as immediate death benefit. Future premiums are waived i.e., No need to pay any premium after the death of the life insured. 25 % of Sum assured will be paid on the last 4 years of the policy term. Bonus will be paid in the last year when the policy ends.

Features of LIC JEEVAN CHHAYA : 25 % of Sum assured will be paid on the last 4 years of the policy term irrespective of either the life insured survives or not. On the death of life insured within the policy term : Sum assured will be immediately paid to the nominee. Future premiums are waived. So no premium needs to be paid after that. 25 % of Sum assured will be paid to the nominee on last 4 years of policy term.

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 Loyalty Addition (Bonus) will be paid at the end of the policy term.

LIC JEEVAN CHHAYA Eligibility Conditions :Minimum Sum Assured (in Rs.) 50,000 Maximum No Limit 25

Policy Term (in years) 18 Premium Payment Equal to Policy term

Term(in years) Entry Age of Life Insured Age at Maturity Payment modes

18 -

47 65

Yearly, Half-yearly, Quarterly, Monthly and SSS

Benefits of LIC JEEVAN CHHAYA :Maturity Return:25 % of Sum assured will be paid on last 4 policy years. Bonus will be paid on the last year of policy irrespective of the life insured is survives or not.

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Death Benefit:On death of the life insured, Sum assured will be paid to the nominee immediately. The policy will continue and maturity benefits will be paid.

Income Tax Benefit:Available under Section 80 C for premiums paid and Section 10 (10D) for Maturity returns. Loan on Policy:-Available Housing Loan Surety:-Available

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Child future Plan

LIC Child Future Plan:LIC Child Future Plan (Table 185) is a money back Endowment plan that provides funds at regular yearly intervals for professional or higher education and start-in-life in the form of 6 money back installments. Under Childs Future Plan, the premium need not be paid for the last 5 years of the policy term. Maturity benefit will be paid back in the last 6 years of the policy term. 25 % of Sum assured will be paid in the 1st of the 6 years. It will be followed by 10 % of Sum assured in the next 4 years. At the end of the policy term, 50 % of Sum assured with Vested Bonus and Final Additional Bonus will be paid.

Features of LIC Child Future Plan : The Risk cover on the child extends to 7 years after the maturity of the policy. The risk starts from the age of 5 years of the child. The maturity benefit will be paid for the last 6 years of the policy term. Vested Bonus with Final additional Bonus will be paid with the last year maturity benefit.

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LIC Child Future Plan Eligibility Conditions :Minimum Sum Assured (in Rs.) 1,00,000 Maximum 1 Core 27

Policy Term (in years) 11 Premium Payment Policy term 5

Term(in years) Entry Age of Life Insured Age at Maturity Payment modes

0 23

12 27

Yearly, Half-yearly, Quarterly and SSS

Benefits of LIC Child Future Plan :Maturity Return:Maturity benefit will be paid for the last 6 of the policy years. 25 % of Sum assured will be paid on 1st of 6 years 10 % of Sum assured will be paid for the next 4 years.

50 % of Sum assured with Vested Bonus & Final Additional

Bonus will be paid on policy maturity.

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Death Benefit: On the death of the child after the commencement of risk, the nominee would get the Sum assured with Bonus. However if the child expires before the commencement of risk, the nominee will get only the premiums paid with 3 % p.a. compounded interest on it. If the child expires after receiving the maturity benefit, Sum assured will be paid. Income Tax Benefit:Available under Section 80 C for premiums paid and Section 10 (10D) for Maturity returns. Loan on Policy:-Not Available Housing Loan Surity:-Not Available

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53

CASE STUDY

Life Insurance Corporation of India (LIC) is an Indian stateownedinsurance group and investment company headquartered in Mumbai. It is the largest insurance company in India with an estimated asset value of 1560481.84 crore (US$250 billion). As of 2013 it had total life fund of Rs.1433103.14 crore with total value of policies sold of 367.82 lakh that year. The company was founded in 1956 when the Parliament of India passed the Life Insurance of India Act that nationalised the private insurance industry in India. Over 245 insurance companies and provident societies were merged to create the state owned Life Insurance Corporation.

History
The Oriental Life Insurance Company, the first company in India offering life insurance coverage, was established in Calcutta in 1818 by BipinBehariDasgupta and others. In 1955,

parliamentarian AmolBarate raised the matter of insurance fraud by owners of private insurance agencies. In the ensuing investigations, one of India's wealthiest businessmen, SachinDevkekar, owner of the Times of India newspaper, was sent to prison for two years. Eventually,
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the Parliament of India passed the Life Insurance of India Act on June 19, 1956 creating the Life Insurance Corporation of India, which started operating in September of that year. It consolidated the life insurance business of 245 private life insurers and other entities offering life insurance services, this consisted of 154 life insurance companies, 16 foreign companies and 75 provident companies. The nationalization of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which had created a policy framework for extending state control over at least seventeen sectors of the economy, including the life insurance. Today, the LIC had 8 zonal offices, around 109 divisional offices, 2,048 branches and 992 satellite offices and corporate offices; it also has 54 customer zones and 25 metro-area service hubs located in different cities and towns of India. It also has a network of 1,337,064 individual agents, 242 Corporate Agents, 79 Referral Agents, 98 Brokers and 42 Banks for soliciting life insurance business from the public. Agency LIC had 12, 78, 234 agents as on 31 March 2012, out of which the number of active agents was 12,14,111 (95%). LIC Child Insurance Plans helps you accumulate finances to provision for your childs future and help you plan your childs future in advance so that you dont fall short of finances when you need them the most. LIC offers 10 variants of child insurance plans to meet your financial needs for your childrens dreams and aspirations.

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 JEEVAN ANURAG: A participating child plan designed to meet your childrens educational requirement. This plan can be taken on the parents life and sum assured is given immediately on the death of the life assured during the term of the policy. JEEVAN KISHORE: This is a child insurance plan that can be purchased either by the parent or grandparents. It is an endowment assurance plan for children of less than 12 years of age. JEEVAN CHHAYA: A child plan where financial protection is given against death during the term of the plan. It is a participating endowment assurance plan. KOMAL JEEVAN: Is a Money Back Plan which can be bought by the parent or grandparents for their child from the age of 0-10years. This plan gives financial protection against death during the duration of the plan with periodic payments on survival at specified durations.

Child Future Plan: A education plan where the future needs like education, marriage and other requirements are taken care of. This plan provides a benefit

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which not only takes care of the risk cover of the child during the policy but also after 7 years of the policy being expired. Child Career Plan: A child insurance plan that provides the risk cover on the life of child during the policy term as well as 7 years after the policy has expired. There are also Survival benefits given to the life assured at the end of a specific duration. Child Fortune Plan: It is unit linked child insurance plan which offers long term capital appreciation. Children's Deferred Endowment (CDA) vesting at 21: This children insurance plan is designed to enable a parent, legal guardian or any near relative of the child to provide insurance cover on the life of the child. CDA Endowment vesting at 18: This is a child insurance plans designed to enable a parent , legal guardian or any near relative of the child to provide insurance cover on the life of the child.

Marriage Endowment Or Educational Annuity Plan:

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This is an participating Endowment Assurance plan that provides for benefits on or from the selected maturity date to meet the Marriage/Educational expenses of the named child. LIC child insurance plans can be compared and help you ensure that your childrens future is secure and prosperous and select the best child insurance plan for you.

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INFORMATION COLLECTED BY CONDUCTING CUSTOMER SURVEY

Quality of Service Provided By LIC

EXCELLENT GOOD FAIR BAD EXTREMELY BAD NO IDEA

Out of 25 respondents 28% respondents felt that quality of service provided by LIC is Excellent, 48% felt that quality is Good and 24% said that the quality provided by LIC is Fair.

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PEOPLE AWARENESS ABOUT CHILD POLICY

YES NO

Out of 25 respondents 72% of the people are aware about child policy provided by LIC and 28% people are not aware.

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PURCHASE POLICY
90 80 70 60 50 40 30 20 10 0 0 0.5 1 1.5 2 2.5

PURCHASE POLICY

According to Survey it came to know that 76% people purchased the child policy and remaining did not felt the need of any type of child policy.

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NAME OF THE CO. TAKEN CHILD POLICY

60 50 40 30 20 10 0 LIC TATA AIG SBI INSURANCE CO. BHARTI AXA BAJAJ ALLIANZ NONE

According to the survey it is found that around 60% of the people took the policy from LIC, 4% from TATA AIG, 5% purchased the policy from SBI INSURANCE CO.,6% took the policy from BHARTI AXA, 4% from BAJAJ ALLIANZ and 22 % did not purchased any type of child policy.

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NEED OF CHILD POLICY

70 60 50 40 30 20 10 0

Out of 25 respondents 64% of them need child policy for their childs education, and 32% for future and 32% of the people need for their child marriage and 28% of the people felt that for an investing and 24% of the people invested in child policy as a protection to their child.

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RATING OF CHILD POLICY

60 40 20 0 RATING OF CHILD POLICY

Out of 25 respondent 28% of the people rate the child policy as excellent, 48% of the people felt that it is good and 24% of the people rate the child policy as fair.

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SATISFIED WITH LIC POLICY

0-25% 25-50% 50-75% 75-100%

Out of 25 respondent 44% people were very highly satisfied, 24% people were highly satisfied, 16% were not much satisfied.

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66

FINDINGS
LIC is the largest insurance company in India. Insurance provides security against the risks. From this project, it is come to know that, there are various types of insurance like life insurance, automobile insurance, health insurance, credit insurance, property insurance, fire insurance, etc. Insurance provides certainty of payment at the uncertainty of loss. Insurance provides protection & claim against risk. Department formulated a national plan of action for children in 1992. The LIC provides various types of child policy. The child policy helps to child by providing finance for their education, health, marriage, safety, etc. for their bright future. Child insurance plans helps to accumulate finance for child future.

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SUGGETION
There is a need for insurers to undertake a demand audit in order to understand what the policyholder wants and needs. Insurance companies should go for innovating strategies and bring more products and improve the distribution channels as per the area of sales. Child plan should also provide the loan facility. Child plan should also provide the housing loan surity facility. The death benefit should be increased to 25% of the sum assured.

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Conclusion
Child life insurance comes in several forms and is used to insure the life of a child. It may also be used to help a child who develops a medical condition in childhood to obtain life insurance at a later point, though this varies with the policy. There are many claims about child life insurance and its important to understand the different types. Some insurance companies claim that child life insurance protects your childs future. This really depends on the policy. Some policies are whole life insurance, which means that a child would be able to continue to get insurance from that company when he reaches a certain age, usually at age 18. Child policy of LIC is of various types according to the needs of the customers LIC policies have different excellent features which is very beneficial to the customers. Child policies should be purchased and specially of LIC for securing our money and childs future.

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WEBLIOGRAPHY
Search Engines:

http://www.licpolizy.com

https://www.licindia.in

http://www.myinsuranceclub.com/

https://www.google.co.in

Websites Referred: http://www.licpolizy.com/JeevanAnurag.aspx http://www.myinsuranceclub.com/ https://www.licindia.in/children_need_001_benefits.htm

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Annexure CUSTOMER SURVEY

NAME: GENDER: QUALIFICATION: OCCUPATION: AGE:

1. How do you rate the quality of service provided by LIC? Excellent Fair Extremely Bad Good Bad No Idea

2. Are you aware about the various child plans offered by Insurance Companies? Yes No

3. What is your plan for your child future?

4. You have purchased any type of policy? Yes No

5. If you have purchase then which company?

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6. What are the features of the policy?

7. What is the term of policy? 0-3 1-15 1-5 0-20 0-5 Any Other

8. What is the need of child policy? Education Future Investment Protection

Marriage Any Other

9. What are the benefits of the policy to you & your child?

10. How will you rate the Child Policy? Excellent Fair Extremely Bad Good Bad No Idea

11. How much you are satisfied with the LIC policy? 0-25% 50-75% 25-50% 75-100%

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