PROJECT REPORT

ON

LIFE INSURANCE CORPORATION OF INDIA

SUBMITTED IN PARTIAL FULFILLMENT FOR
THE AWARD OF THE DGREE OF
BACHELOR OF BUSINESS ADMINISTRATION
2008-2011
UNDER THE GUIDANCE OF Mrs. MONA KAWATRA

FACULTY, MAIMS
SUBMITTED BY: ASHISH DABAS
BATCH NO.: BBA (B&I) 2ndSEMESTER
ROLL NO.: 8242

MAHARAJA AGRASEN INSTITUTE OF

MANAGEMENT STUDIES
Affiliated to Guru Gobind Singh Indraprasth University, Delhi
PSP Area, Plot No. 1, Sector 22, Rohini Delhi 110086.

INDEX
Table of Contents
Student Declaration

Certificate from Guide

ii

Acknowledgement

iii

Executive Summary

iv

CHAPTER-1

Introduction
CHAPTER -2

Company Profile
CHAPTER -3

21

Research Methodology
CHAPTER-4

25

Policies and Plans

CHAPTER -5

53

Findings
CHAPTER -6

55

Conclusion
BIBLIOGRAPHY

57

STUDENT DECLARATION

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

INDIA under the guidance of Mrs. MONA KAWATRA has been completed and
submitted in partial fulfillment of the requirement for the award of degree of
Bachelor of Business Administration at Maharaja Agrasen Institute of Management
Studies, Delhi . This is an original piece of work & I have not submitted it earlier
elsewhere.

ASHISH DABAS

GUIDE CERTIFICATE

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

INDIA is an academic work done by ASHSISH DABAS submitted in the partial
fulfillment of the requirement for the award of the degree of Bachelor Of Business
Administration from Maharaja Agrasen Institute of Management Studies, Delhi,
under my guidance & direction. To the best of my knowledge and belief the data &
information presented by him/her in the project has not been submitted earlier.

MONA KAWATRA

ACKNOWLEDGEMENT

I am highly obliged to Mrs. MONA KAWATRA (project guide) for her constant and
excellent guidance and also her valuable support without whom this project report
could not be successfully completed. I am also thankful to my friends, my parents,
brother-sister for helping me in the completion of this project report.

EXECUTIVE SUMMARY

Insurance is the most familiar word or phrase used in todays life. Insurance
companies are those institutes that provide various types of facility and services in
term of there plans and policies to the consumers. The following project has been
made on one of the largest company in insurance sector in India which is owned by
government which is LIFE INSURANCE CORPORATION OF INDIA. The
following project makes an analysis of the products of LIC. The brief summary of
each chapter is discussed as follows:-

CHAPTER-1
It consist of information of the industrial profile of the life insurance sector i.e. when
and how does this sector emerges and how it contributes to the economy,

CHAPTER-2
Chapter 2 includes company profile of LIC i.e. how and when it is formed, which
were the companies that merges and form LIC, its milestones, its objectives, mission
and vision, what is life insurance, board of directors, a brief on the subsidiaries. It
also includes awards and achievements by LIC.

CHAPTER-3
Purpose of the study for which it is conducted, objective while conducting the study
and methodology which consist of the medians used and the tools used to complete
the study.

CHAPTER-4
It includes some of the products offered by LIC, net asset value of the products, tax
benefits to its policy holders categorized according to their age. It also shows the
relationship of LIC with information technology.

CHAPTER-5
This chapter includes the findings and analysis retrieved after the study of the of the
project.

CHAPTER-6

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

CHAPTER-1

INRODUCTION

INSURANCE COMPANIES IN INDIA

In India, Insurance is a national matter, in which life and general insurance is yet a
booming sector with huge possibilities for different global companies, as life
insurance premiums account to 2.5% and general insurance premiums account to
0.65% of India's GDP. The Indian Insurance sector has gone through several phases
and changes, especially after 1999, when the Govt. of India opened up the insurance
sector for private companies to solicit insurance by passing Insurance Regulatory and
Development Authority (IRDA) Bill, allowing FDI up to 26%. Since then, the
Insurance sector in India is considered as a flourishing market amongst global
insurance companies. However, the largest life insurance company in India is still
owned by the government.
The history of Insurance in India dates back to 1818, when Oriental Life Insurance
Company was established by Europeans in Kolkata to cater to their requirements.
Nevertheless, there was discrimination among the life of foreigners and Indians, as
higher premiums were charged from the latter. In 1870, Indians took a sigh of relief
when Bombay Mutual Life Assurance Society, the first Indian insurance company
covered Indian lives at normal rates. Onset of the 20th century brought a drastic
change in the Insurance sector.
In 1912, the Govt. of India passed two acts - the Life Insurance Companies Act, and
the Provident Fund Act - to regulate the insurance business. National Insurance
Company Ltd, founded in 1906, is the oldest existing insurance company in India.
Earlier, the Insurance sector had only two state insurers - Life Insurers i.e. Life
Insurance Corporation of India (LIC), and General Insurers i.e. General Insurance
Corporation of India (GIC). In December 2000, these subsidiaries were de-linked
from parent company and were declared independent insurance companies: Oriental
Insurance Company Limited, New India Assurance Company Limited, National
Insurance Company Limited and United India Insurance Company Limited.
With an annual growth rate of 15-20% and the largest number of life insurance
policies in force, the potential of the Indian insurance industry is huge. Total value of
the Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion).

The life insurance industry in India grew by an impressive 36%, with premium
income from new business at Rs. 253.43 billion during the fiscal year 2004-2005,
braving stiff competition from private insurers. This report, "Indian Insurance
Industry: New Avenues for Growth 2012", finds that the market share of the state
behemoth, LIC, has clocked 21.87% growth in business at Rs.197.86 billion by
selling 2.4 billion new policies in 2004-05. But this was still not enough to arrest the
fall in its market share, as private players grew by 129% to mop up Rs. 55.57 billion
in 2004-05 from Rs. 24.29 billion in 2003-04.
Though the total volume of LIC's business increased in the fiscal year (2004-2005)
compared to the previous one, its market share came down from 87.04 to 78.07%.
The 14 private insurers increased their market share from about 13% to about 22% in
a year's time. The figures for the first two months of the fiscal year 2005-06 also
speak of the growing share of the private insurers. The share of LIC for this period
has further come down to 75 percent, while the private players have grabbed over 24
percent.
There are presently 12 general insurance companies with four public sector
companies and eight private insurers and private insurance companies collectively
have a 10% share of the non-life insurance market.

CHAPTER-2
COMPANY PROFILE

COMPANY PROFILE
The story of insurance is probably as old as the story of mankind. The same instinct
that prompts modern businessmen today to secure themselves against loss and
disaster existed in primitive men also. They too sought to avert the evil consequences
of fire and flood and loss of life and were willing to make some sort of sacrifice in
order to achieve security. Though the concept of insurance is largely a development
of the recent past, particularly after the industrial era past few centuries yet its
beginnings date back almost 6000 years.
Life Insurance in its modern form came to India from England in the year 1818.
Oriental Life Insurance Company started by Europeans in Calcutta was the first life
insurance company on Indian Soil. All the insurance companies established during
that period were brought up with the purpose of looking after the needs of European
community and Indian natives were not being insured by these companies. However,
later with the efforts of eminent people like Babu Muttylal Seal, the foreign life
insurance companies started insuring Indian lives. But Indian lives were being treated
as sub-standard lives and heavy extra premiums were being charged on them.
Bombay Mutual Life Assurance Society heralded the birth of first Indian life
insurance company in the year 1870, and covered Indian lives at normal rates.
Starting as Indian enterprise with highly patriotic motives, insurance companies came
into existence to carry the message of insurance and social security through insurance
to various sectors of society. Bharat Insurance Company (1896) was also one of such
companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise
to more insurance companies. The United India in Madras, National Indian and
National Insurance in Calcutta and the Co-operative Assurance at Lahore were
established in 1906. In 1907, Hindustan Co-operative Insurance Company took its
birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath
Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life
(later Bombay Life) were some of the companies established during the same period.
Prior to 1912 India had no legislation to regulate insurance business. In the year 1912,
the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life
Insurance Companies Act, 1912 made it necessary that the premium rate tables and
periodical valuations of companies should be certified by an actuary. But the Act

discriminated between foreign and Indian companies on many accounts, putting the
Indian companies at a disadvantage.
The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to
176 companies with total business-in-force as Rs.298 crore in 1938. During the
mushrooming of insurance companies many financially unsound concerns were also
floated which failed miserably. The Insurance Act 1938 was the first legislation
governing not only life insurance but also non-life insurance to provide strict state
control over insurance business. The demand for nationalization of life insurance
industry was made repeatedly in the past but it gathered momentum in 1944 when a
bill to amend the Life Insurance Act 1938 was introduced in the Legislative
Assembly. However, it was much later on the 19th of January, 1956, that life
insurance in India was nationalized. About 154 Indian insurance companies, 16 nonIndian companies and 75 provident were operating in India at the time of
nationalization. Nationalization was accomplished in two stages; initially the
management of the companies was taken over by means of an Ordinance, and later,
the ownership too by means of a comprehensive bill. The Parliament of India passed
the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance
Corporation of India was created on 1st September, 1956, with the objective of
spreading life insurance much more widely and in particular to the rural areas with a
view to reach all insurable persons in the country, providing them adequate financial
cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long term
contracts and during the currency of the policy it requires a variety of services need
was felt in the later years to expand the operations and place a branch office at each
district headquarter. Re-organization of LIC took place and large numbers of new
branch offices were opened. As a result of re-organization servicing functions were
transferred to the branches, and branches were made accounting units. It worked
wonders with the performance of the corporation. It may be seen that from about
200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only
in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark

of new business. But with re-organization happening in the early eighties, by 1985-86
LIC had already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 100 divisional
offices, 7 zonal offices and the corporate office. LICs Wide Area Network covers 100
divisional offices and connects all the branches through a Metro Area Network. LIC
has tied up with some Banks and Service providers to offer on-line premium
collection facility in selected cities. LICs ECS and ATM premium payment facility is
an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info
Centers have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai,
Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of
providing easy access to its policyholders, LIC has launched its SATELLITE
SAMPARK offices. The satellite offices are smaller, leaner and closer to the
customer. The digitalized records of the satellite offices will facilitate anywhere
servicing and many other conveniences in the future.
LIC continues to be the dominant life insurer even in the liberalized scenario of
Indian insurance and is moving fast on a new growth trajectory surpassing its own
past records. LIC has issued over one crore policies during the current year. It has
crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting
a healthy growth rate of 16.67% over the corresponding period of the previous year.
From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same motives
which inspired our forefathers to bring insurance into existence in this country inspire
us at LIC to take this message of protection to light the lamps of security in as many
homes as possible and to help the people in providing security to their families.
Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian
soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company
started its business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC
Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in
the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.

LIC SUBSIDIARIES

Unlike provisions for private players in the insurance sector, the LIC Act provides for
setting up subsidiaries through policy holders fund. It is due to the LIC act that LIC of
India has a number of subsidiaries which help it in leveraging its potential to the
maximum, providing an enhanced set of diversified services to its customers. These
subsidiaries include LIC International, LIC Nepal, LIC Lanka, LIC Housing Finance
and LIC Mutual Fund.

LIC INERNATIONAL
This is a joint venture offshore company promoted by LIC which commenced
operations in July, 1989 with the objectives of offering US$ denominated policies to
cater to the insurance needs of NRIs and providing insurance services to holders of
LIC policies currently residing in the Gulf. LIC International operates in all GCC
countries.

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

LIC LANKA
A joint venture company formed in 2003 with the Bartleet Group of Companies, Sri
Lanka.

LIC HOUSING FINANCE LTD.

The Company is recognized by National Housing Bank and listed on the National
Stock Exchange (NSE) & Bombay Stock Exchange Limited (BSE). LIC Housing
Finance Ltd. is one of the largest Housing Finance Company in India. Incorporated
on 19th June 1989 under the Companies Act, 1956, the company was promoted by
LIC of India and went public in the year 1994. Its main objective is to provide long
term finance for construction or purchase of houses or apartments. It has a Dubai
office.

LIC MUTUL FUND LTD.

Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989 and
contributed Rs. 2 Crores towards the corpus of the Fund. LIC Mutual Fund was
constituted as a Trust in accordance with the provisions of the Indian Trust Act, 1882.
There are some other subsidiaries of LIC which are

1. LIC Mutual Fund Asset Management Company Ltd.

2. LIC HFL Care Homes Ltd.
3. LICHFL Asset Management Company Private Limited.
4. LICHFL Trustee Company Private Limited.
5. LICHFL Financial Services Limited, etc.

WHAT IS LIFE INSURANCE?

Life insurance is a contract that pledges payment of an amount to the person assured
(or his nominee) on the happening of the event insured against.
The contract is valid for payment of the insured amount during:

The date of maturity, or

Specified dates at periodic intervals, or

Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium
periodically to the Corporation by the policyholder. Life insurance is universally
acknowledged to be an institution, which eliminates 'risk', substituting certainty for
uncertainty and comes to the timely aid of the family in the unfortunate event of death
of the breadwinner.
By and large, life insurance is civilizations partial solution to the problems caused by
death. Life insurance, in short, is concerned with two hazards that stand across the
life-path of every person:
1.

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

2.

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

Life Insurance Vs. Other Savings

Contract of Insurance:
A contract of insurance is a contract of utmost good faith technically known as
uberrima fides. The doctrine of disclosing all material facts is embodied in this
important principle, which applies to all forms of insurance.
At the time of taking a policy, policyholder should ensure that all questions in the
proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud
in any document leading to the acceptance of the risk would render the insurance
contract null and void.

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

saver. Also, in case of demise, life insurance assures payment of the entire amount
assured (with bonuses wherever applicable) whereas in other savings schemes, only
the amount saved (with interest) is payable.

Aid to Thrift:
Life insurance encourages 'thrift'. It allows long-term savings since payments can be
made effortlessly because of the 'easy installment' facility built into the scheme.
(Premium payment for insurance is either monthly, quarterly, half yearly or yearly).
For example: The Salary Saving Scheme popularly known as SSS provides a
convenient method of paying premium each month by deduction from one's salary. In
this case the employer directly pays the deducted premium to LIC. The Salary Saving
Scheme is ideal for any institution or establishment subject to specified terms and
conditions.

Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy that
has acquired loan value. Besides, a life insurance policy is also generally accepted as
security, even for a commercial loan.

Tax Relief:
Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax.
This is available for amounts paid by way of premium for life insurance subject to
income tax rates in force.
Assesses can also avail of provisions in the law for tax relief. In such cases the
assured in effect pays a lower premium for insurance than otherwise.

Money When You Need It:

A policy that has a suitable insurance plan or a combination of different plans can be
effectively used to meet certain monetary needs that may arise from time-to-time.
Children's education, start-in-life or marriage provision or even periodical needs for
cash over a stretch of time can be less stressful with the help of these policies.
Alternatively, policy money can be made available at the time of one's retirement
from service and used for any specific purpose, such as, purchase of a house or for

other investments. Also, loans are granted to policyholders for house building or for
purchase of flats (subject to certain conditions).

Who Can Buy A Policy?

Any person who has attained majority and is eligible to enter into a valid contract can
insure himself/herself and those in whom he/she has insurable interest.
Policies can also be taken, subject to certain conditions, on the life of one's spouse or
children. While underwriting proposals, certain factors such as the policyholders
state of health, the proponent's income and other relevant factors are considered by
the Corporation.

Insurance For Women

Prior to nationalization (1956), many private insurance companies would offer
insurance to female lives with some extra premium or on restrictive conditions.
However, after nationalization of life insurance, the terms under which life insurance
is granted to female lives have been reviewed from time-to-time.
At present, women who work and earn an income are treated at par with men. In other
cases, a restrictive clause is imposed, only if the age of the female is up to 30 years
and if she does not have an income attracting Income Tax.

Medical And Non-Medical Schemes

Life insurance is normally offered after a medical examination of the life to be
assured. However, to facilitate greater spread of insurance and also to avoid
inconvenience, LIC has been extending insurance cover without any medical
examination, subject to certain conditions.

With Profit And Without Profit Plans

An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed,
if any, after periodical valuations are allotted to the policy and are payable along with
the contracted amount.
In 'without' profit plan the contracted amount is paid without any addition. The
premium rate charged for a 'with' profit policy is therefore higher than for a 'without'

profit policy.

Keyman Insurance
Keyman insurance is taken by a business firm on the life of key employee(s) to
protect the firm against financial losses, which may occur due to the premature
demise of the Keyman.

OBJECTIVES OF LIC

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

socially and economically backward classes with a view to reaching all insurable
persons in the country and providing them adequate financial cover against death at a
reasonable cost.

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

savings adequately attractive.

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

policyholders, whose money it holds in trust, without losing sight of the interest of
the community as a whole; the funds to be deployed to the best advantage of the
investors as well as the community as a whole, keeping in view national priorities and
obligations of attractive return.

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

moneys belong to the policyholders.

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

capacities.

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

changing social and economic environment.

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

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

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

participation, pride and job satisfaction through discharge of their duties with
dedication towards achievement of Corporate Objective.

MISSION/VISSION

MISSION

"Explore and enhance the quality of life of people through financial security by
providing products and services of aspired attributes with competitive returns, and by
rendering resources for economic development."

VISSION
"A trans-nationally competitive financial conglomerate of significance to societies
and Pride of India."

BOARD OF DIRECTORS
Members on the Board of the Corporation

1. Chairman: Shri. T.S. Vijayan

2. Managing Director: Shri. D.K. Mehrotra
3. Managing Director: Shri. Thomas Mathew T.
4. Managing Director: Shri. A.K. Dasgupta
5. Finance Secretary: Shri. Ashok Chawla (Ministry of Finance, Govt. of India)
6. Additional Secretary:

Shri. G.C. Chaturvedi (Department of Financial

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

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

8. Chairman & Managing Director:

Shri. T.C. Venkat Subramanian (Export

Import Bank of India)

9. Dr. Sooranad Rajashekhran

10. Shri. Monis R. Kidwai

AWARDS AND ACHIVEMENTS

Brand Equity Most Trusted Brand Golden Peacock Innovative Product /

2009 Top in Insurance Category

Loyalty Awards - 2009

CNBC Awaaz Consumer Awards 2008

Service Award 2009

Readers Digest Trusted Brand Award

2009 in the Platinum category

NDTV Profit Business Leadership

Award 2008

INDY's

Silver

Award

for

Best INDY's Silver Award for Best in

Corporate Film

House Magazine

IT USER 2008 NASCOM

Selected Business Super brand India

2008

ASIA BRAND CONGRESS BRAND Pitch Award -" Rank 1 " India's Top
LEADERSHIP AWARD 2008

50 service Brands

Loyalty Awards 2008 - Insurance SKOCH Challengers Award 2008 for

Sector

Jeevan Madhur

Readers Digest Trusted Brand Award Golden Peacock Award for Excellence
2008 in the Platinum category.

Web 18 Genius of the web awards 2007

in Corporate Governance

CHAPTER-3

RESEARCH METHODOLOGY

PURPOSE OF THE STUDY

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

to understand the companies background as well as the nature of the various products
offered over many years in India. Purpose is to study the products and their benefits
to customers. This gives a brief idea of the nature of products of the company.

OBJECTIVES OF THE STUDY

The objectives behind the study of the plans and policies of LIFE INSURANCE
CORPORATION OF INDIA are:

1. To impart knowledge about the history and objectives of the company and also its
different subsidiaries.
2. To aware the readers about the different plans and policies provided by LIC, there
value and benefits to its customers.

METHODOLOGY
DATA COLLECTION:

All the information provided on LIFE INSURANCE CORPORATION OF INDIA in

the project report has been collected through secondary resources. No survey has
been conducted to collect information for the study. Therefore only secondary data is
used in the study.

STATICAL TOOLS:
Secondary resources used in the study for information collection is internet and
magazines. Magazines & websites have been used and the information retrieved from
these sources is then gathered in this project. Other tools used in the study which are
used in the preparation of the project after collecting information are:
1. MS Word
2. MS Excel

CHAPTER-4

POLICIES

POLICIES (SCHEMES)
Life Insurance Corporation of India provides number of products to its costumers.
LIC differentiated their policies into five different types which are:
1. Insurance Plans

2. Pension Plans
3. Unit Plans
4. Special Plans
5. Group Scheme

INSURANCE PLANS
As individuals it is inherent to differ. Each individuals insurance needs and
requirements are different from that of the others. LICs Insurance Plans are policies
that talk to you individually and give you the most suitable options that can fit your
requirement.

Jeevan Anurag
CDA Endowment Vesting At 21

Komal Jeevan
Marriage
Endowment

CDA Endowment Vesting At 18

Educational Annuity Plan

Jeevan Chhaya
Child Future Plan

Jeevan Kishore
Child Career Plan
Child Fortune Plus
Jeevan Aadhar
Jeevan Vishwas

The Endowment Assurance Policy

The Endowment Assurance Policy-Limited Payment
Jeevan Mitra(Double Cover Endowment Plan)
Jeevan Mitra(Triple Cover Endowment Plan)
Jeevan Anand
New Janaraksha Plan
Jeevan Amrit
Jeevan Shree-I
Jeevan Pramukh
The Money Back Policy-20 Years
The Money Back Policy-25 Years
Jeevan Surabhi-15 Years
Jeevan Surabhi-20 Years
Jeevan Surabhi-25 Years
Bima Bachat

Or

Jeevan Bharati - I
The Whole Life Policy
The Whole Life Policy- Limited Payment
The Whole Life Policy- Single Premium
Jeevan Anand
Jeevan Tarang
Two Year Temporary Assurance Policy
The Convertible Term Assurance Policy
Anmol Jeevan-I
Amulya Jeevan-I
Jeevan Saathi Plus
Jeevan Saathi

Mortgage Redemption

PENSION PLANS
Pension Plans are Individual Plans that gaze into your future and foresee financial stability during
your old age. These policies are most suited for senior citizens and those planning a secure future, so
that you never give up on the best things in life.

Jeevan Nidhi
Jeevan Akshay-VI
New Jeevan Dhara-I
New Jeevan Suraksha-I

UNIT PLANS
Unit plans are investment plans for those who realize the worth of hard-earned
money. These plans help you see your savings yield rich benefits and help you save
tax even if you don't have consistent income.

Market Plus I
Profit Plus
Fortune Plus
Money Plus-I
Child Fortune Plus

SPCIAL PLANS
LICs Special Plans are not plans but opportunities that knock on your door once in a
lifetime. These plans are a perfect blend of insurance, investment and a lifetime of
happiness!

New Bima Gold

Health Protection Plus
Health Plus
Bima Nivesh 2005
Jeevan Saral
Jeevan Madhur

Jeevan Mangal

GROUP SCHEME
Group Insurance Scheme is life insurance protection to groups of people. This
scheme is ideal for employers, associations, societies etc. and allows you to enjoy
group benefits at really low costs.

Group LIC's Superannuation Plus

Group Term Insurance Schemes
Group Insurance Scheme in Lieu Of EDLI
Group Gratuity Scheme

Group Super Annuation Scheme

Group Savings Linked Insurance Scheme
Group Leave Encashment Scheme
Group Mortgage Redemption Assurance Scheme
Gratuity Plus
Group Critical Illness Rider
JanaShree Bima Yojana (JBY)
Shiksha Sahayog Yojana
Aam Admi Bima Yojana

PRODUCTS BY LIC
INSURANCE PLANS

1. Jeevan Anand
Features
Product summary:
This plan is a combination of Endowment Assurance and Whole Life plans. It
provides financial protection against death throughout the lifetime of the life assured
with the provision of payment of a lump sum at the end of the selected term in case of
his survival.
Premium:
Premiums are payable yearly, half-yearly, quarterly, monthly or through salary
deductions as opted by you throughout the selected term of the policy or till earlier
death.
Bonuses:
This is a with-profit plan and participates in the profits of the Corporations life
insurance business. It gets a share of the profits in the form of bonuses. Simple
Reversionary Bonuses are declared per thousand Sum Assured annually at the end of
each financial year. Once declared, they form part of the guaranteed benefits of the
plan. Bonuses will be added during the selected term or till death, if it occurs earlier.
Final (Additional) Bonus may also be payable provided the policy has run for certain
minimum period

Benefits
Benefits in case of death during the selected term:
The Sum Assured along with the vested bonuses is payable on death in a lump sum.
Benefits in case of survival to the end of selected term:
The Sum Assured along with the vested bonuses is payable in a lump sum on survival
to the end of the term. An additional Sum Assured is payable on death thereafter.
Accident Benefit:
An additional Sum Assured (subject to a limit of Rs.5 lakh) is payable in a lump sum
on death due to accident up to age 70 of life assured. In case of permanent disability
of the life assured due to accident this additional Sum assured is payable in

installments.
Supplementary/Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra
protection/option. An additional premium is required to be paid for these benefits.
Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender
values are available on the plan on earlier termination of the contract.
Guaranteed Surrender Value:
The policy may be surrendered after it has been in force for 3 years or more. The
guaranteed surrender value is 30% of the basic premiums paid excluding the first
years premium. Any extra premium(s) paid and premium(s) towards Accident
Benefit are also excluded.
Corporations policy on surrenders:
In practice, the Corporation will pay a Special Surrender Value which is either equal
to or more than the Guaranteed Surrender Value. The benefit payable on surrender
reflects the discounted value of the reduced claim amount that would be payable on
death or at maturity. This value will depend on the duration for which premiums have
been paid and the policy duration at the date of surrender. In some circumstances, in
case of early termination of the policy, the surrender value payable may be less than
the total premium paid.

2. Jeevan Shree-I
Product summary:
This is an Endowment Assurance plan offering the choice of many convenient
premiums paying terms. It provides financial protection against death throughout the
term of plan with the payment of maturity amount on survival to the end of the policy
term.
Premiums:
Premiums are payable yearly, half-yearly, quarterly or through Salary deductions, as
opted by you, throughout the premium paying term or till earlier death. Alternatively
premium may be paid in one lump sum (Single premium).
Guaranteed Additions:

The policy provides for the Guaranteed Additions at the rate of Rs. 50/- per thousand
Sum Assured for each completed year for first five years of the policy. The
Guaranteed Additions are payable along with the Basic Sum Assured at the time of
claim.
Bonuses:
The policy participates in the profits of the Corporations life insurance business from
the 6th year onwards. It will get a share of the profits in the form of bonuses. Simple
Reversionary Bonuses will be declared per thousand Basic Sum Assured annually at
the end of each financial year. Once declared, they will form part of the guaranteed
benefits of the plan.

Benefits
Death Benefit:
The Sum Assured along with guaranteed additions and vested bonuses, if any, is
payable in a lump sum on death of the life assured during the policy term.
Maturity Benefit:
The Sum Assured along with guaranteed additions and reversionary bonuses, if any
is payable in a lump sum on survival to the end of the policy term.
Supplementary/Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra
protection/option. An additional premium is required to be paid for these benefits.
Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender
value is available on the plan on earlier termination of the contract.
Guaranteed Surrender Value:
The policy may be surrendered after it has been in force for 3 years or more. The
guaranteed surrender value is 30% of the basic premiums paid excluding the first
years premium. In case of a single premium policy the guaranteed surrender value is
90%

of

the

single

premium

paid

excluding

any

extra

premium.

Corporations policy on surrenders:

In practice, the Corporation will pay a Special Surrender Value which is either equal
to or more than the Guaranteed Surrender Value. The benefit payable on surrender
reflects the discounted value of the reduced claim amount that would be payable on
death or at maturity. This value will depend on the duration for which premiums have

been paid and the policy duration at the date of surrender. In some circumstances, in
case of early termination of the policy, the surrender value payable may be less than
the total premium paid.

3. Bima Bachat
What is Bima Bachat?
LICs Bima Bachat is a money-back policy which offers financial security and
assurance to the policy holder and his family. Bima Bachat requires the policy holder
to pay only one premium. The amount paid for the premium depends on the duration
of the policy taken and life insurance is available till the date of maturity.
What other benefits do I receive during the specified duration of the policy?

For a term of 9 years: The policy holder will receive 15% of the sum assured at the
end of every 3rd and 6th policy year.

For a term 12 years: The policy holder will receive 15% of the sum assured at the end
of every 3rd, 6th and 9th policy year.

For a term 15 years: The policy holder will receive15% of the sum assured at the end
of every 3rd, 6th, 9th and 12th policy year.
What additional benefits do I get upon maturity?
If the policy holder outlives the duration of the policy, at the time of maturity, a single
premium payment (excluding extra premium) is made along with loyalty additions, if
any.
How much insurance do I get?
The policy holder is insured for an amount equal to the sum assured.
What about the installment received already?
The

insurance

cover

is

irrespective

of

the

installments

received.

When am I eligible for the guaranteed surrender value?

The guaranteed surrender value is available only after completion of at least one
policy year. This value is equal to 90 % of the single premium paid (excluding extra
premium).
What other benefits does this insurance cover offer?
Bima Bachat is the only money-back policy that offers a loan facility. The rate of
interest for this will be determined from time to time by the corporation. Presently the
rate of interest is 9% p.a. payable half-yearly.
It also offers other benefits like the 15 day cooling off period, grace period and
revival.
Who is eligible for the policy? Are there other conditions or restrictions?
The following are the requirements that one needs to be aware of before applying for
this policy:
The person applying for the policy should have completed 15 years and should not
be older than 66 years.
The policy will mature when the person is 75 years old.
There is a choice of three terms to choose from (9, 12 and 15 years) for the policy
depending on the age and requirement of the applicant.

 The minimum sum that needs to be assured is Rs 20,000/- and there is no limit on
the amount that can be assured.
It is important to note that the sum assured should be in multiples of Rs 5000/- only.
The policy requires the holder to pay a single premium.

Premium payment
Single Premium
The sample premium rates are as under: Age

Annual Premium per 1000 SA

9

12

15

15

716.40

771.35

804.00

20

717.20

771.85

804.40

25

717.55

772.25

804.95

30

718.45

773.35

806.10

35

721.05

775.75

808.55

40

725.80

780.25

812.95

45

734.10

787.60

819.60

50

746.60

797.90

828.95

55

762.65

811.95

841.75

60

784.80

831.30

859.35

65

816.25

What incentives do I get for a higher sum assured?

Lets take an example of a 30 year old with a Bima Bachat policy for 12 years. If the
sum assured is Rs 45,000 then he has to pay a premium of Rs 34800.75. But for a
sum assured amount of Rs 50,000 he will have to pay a premium of Rs 36734.13
only, thus getting a 5% rebate in premium.
Refer to the table below for other rebate percentages:
Less than Rs. 50,000
Rs. 50,000 and Less than Rs.1
lakh
Rs. 1 lakh and Less than Rs.2
lakh

NIL
5%
7%

Rs. 2 lakh and above

8%

4. The Convertible Term Assurance Policy

Features
This plan of assurance is designed to meet the needs of those who are initially unable
to pay the larger premium required for a Whole Life or Endowment Assurance Policy,
but hope to be able to pay for such a policy in the near future.
This plan would be found useful also in cases where it is desired to leave the final
decision as to the plan to a later date when, perhaps a better choice could be made.
Policy holders get an option of converting an policy into endowment assurance or
limited payment whole life assurance.
Suitable For:
For all people with earned income under Category I and unearned incomes under
Category II, basically Standard and sub-Standard lives attracting EMR classes I and
II.

Benefits
Survival Benefit
Not Applicable
Death Benefit
the sum assured is payable only in the event of death of the Life Assured before the
expiry of the specified term.

Plan parameters
Minimum

Maximum

Entry age

20 (nearer birthday)

50

Sum assured (Rs.)

50,000

1,00,00,000

Term (years)

Mode of Payment

Maximum premium paying

period

Policy loan available

Yearly,

Half-yearly,

Quarterly,
Salary

Monthly,
Saving

55 years

No

Scheme

PENSION PLANS
1. New Jeevan Dhara-I
Features
Product summary:
These are Deferred Annuity plans that allow the policyholder to make provision for
regular income after the selected term.
Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary
deduction, as opted by you, throughout the term of the policy or till earlier death.
Alternatively, the premium may be paid in one lump sum (single premium).
Tax Benefits:
Tax relief under Section 80ccc is available on premiums paid under New Jeevan
Suraksha I (Table No.147). The premiums paid under New Jeevan Dhara I (Table
No.148) qualify for tax relief under Section 88.
Bonuses:
These are with-profit plans and participate in the profits of the Corporations annuity /
pension business. Policies get a share of the profits in the form of bonuses. Simple
Reversionary Bonuses are declared per thousand Sum Assured annually at the end of
each financial year. Once declared, they form part of the guaranteed benefits of the
plan. Final (Additional) Bonuses may also be payable provided policy has run for a
certain minimum period.

Benefits

Death Benefit:
On death of the Life Assured during the term of the policy the basic premiums paid,
excluding any rider premiums or extra premiums, up to the date of death accumulated
with interest at such rates as decided by the Corporation will be payable to the
nominee. Currently, the interest rate is 3%, 4% or 5 % if the death occurs within the
first 10 years, 20 years or thereafter respectively.
Maturity Benefit:
At maturity the policyholder can encash up to a maximum 25% of the maturity
proceeds as a tax-free lump sum. The balance should be compulsorily converted to an
annuity at the rates applicable at the time of maturity of the policy. The policyholder
has the choice of opting for any one of 5 annuity options. The annuity options
available are:
(i) annuity payable for remainder of life
(ii) annuity payable for life with guaranteed period of 5, 10, 15 or 20 years
(iii) Joint life and last survivor annuity to the annuitant and his/ her spouse under
which annuity payable to the spouse on death of the purchaser will be 50% of that
payable to the annuitant
(iv) Life annuity with a return of purchase price on death of the annuitant
(v) Life annuity increasing at a simple rate of 3% per annum
Supplementary/Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra
protection/option. An additional premium is required to be paid for these benefits.
Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender
value is 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 2 years or more but
before the vesting date. The guaranteed surrender value is 90% of the basic
premiums paid excluding the first years premium. In case of a single premium
policy the guaranteed surrender value is allowed after 2 years from the date of
commencement of the policy.
Corporations policy on surrenders:

In practice, the company will pay a Special Surrender Value which is equal to or
higher than the Guaranteed Surrender Value. The benefit payable on surrender reflects
the discounted value of the reduced claim amount that would be payable on death or
at maturity. This value will depend on the duration for which premiums have been
paid and the policy duration at the date of surrender. In some circumstances, in case
of early termination of the policy, the surrender value payable may be less than the
total premium paid.

UNIT PLANS-I
1. Market plus-I
This is a unit linked pension plan wherein the pension is payable after a specified
period. Four types of investment Funds namely Bond, Secured, Balanced and
Growth Fund are offered. Though primarily a Pension product, the plan has many
attractive features and options which make it an ideal Retirement solution for the
future.
BENEFITS
A) - On Vesting:
On vesting of the policy, the Fund Value will be utilized to provide a pension based
on the then prevailing Annuity rates. An option to commute up to one third of the
payable benefit in a lump sum is available.
B) On Death:
In event of the unfortunate death of the policy holder the Fund Value along with the
Riders, if any, will be payable in a lump sum or as a pension.
OPTIONS
Three attractive benefits, viz. - Life Cover, Accident Benefit and Critical Illness
Benefit are available as options or riders. Life option is available within certain limits
depending on the age at entry of the life assured. The other options are available to all
proposers who have opted for Life Cover. The quantum of the risk covers can also be

reduced; subject to the minimum limits, once a year. A policy can be taken without
any of the riders also.
REVIVAL
An attractive feature of the plan is that provided the premiums have been paid for a
minimum period of three years, all the riders under the policy will continue for a
period of two years from the due date of first unpaid premium by deduction of
relevant charges from the policy fund. This period of two years is called the Revival
Period. Further, if premiums have been paid for a minimum period of three years,
revival can be effected merely by paying the arrears of premium, within the Revival
Period.
PAYMENT OF PREMIUMS
Premiums can be paid in a lump sum (single premium) and also by monthly (ECS),
quarterly, half-yearly and yearly modes.
CHANGE IN FUND TYPE (SWITCH)
The plan also allows a policy holder to switch from one type of fund to another up to
four times a year, free of charge.
OTHER FEAUTRES
There will be no spread between the Bid and Offer price. The Net Asset Value (NAV)
will be declared on a daily basis. Additional premium in multiples of Rs.1,000 can be
paid without any limit at anytime during the term of policy.

SPECIAL PLANS
1. Bima Nivesh
Features
Bima Nivesh 2005 is a plan with compound rate of guaranteed additions and loyalty
additions. This is the revised version of our popular Bima Nivesh Plan 2004 and is
introduced to meet the overwhelming demand for a single premium plan from our

customers. It is a single premium, ideal investment plan for those who have no
regular income but good periodical income. Bima Nivesh 2005 is available for terms
5 and 10 years. The guaranteed surrender value is payable after the policy has run for
at least one year. Term Assurance Rider is also available by payment of a single
premium at the option of the proposer.

Benefits
Guaranteed Additions: Guaranteed additions at the compound rate of Rs.50 per
thousand Sum Assured per annum for the policy with term of 5 years and at the
compound rate of Rs.55 per thousand Sum Assured per annum for the policy with
term of 10 years.
Loyalty Addition: Depending upon the Corporation's experience with regard to
mortality, interest and expenses and based on term of the policy, Loyalty addition, if
any, may be declared by the corporation and paid on maturity.
Maturity Benefit: The Basic Sum Assured along with compounded Guaranteed
Additions will be payable. Loyalty addition, if any, will also be added to this benefit.
Payment on death: In case of the unfortunate death of the Life Assured during the
term of the policy, Sum Assured along with the accrued guaranteed additions will be
payable.
Surrender Value: Surrender value is payable after the policy has run at least for
one year.
Riders: Term Assurance rider is available.
Eligibility conditions and other restrictions
For the Main Plan

Term Assurance Option

Min. Age at entry

13 years completed

18 years completed

Max. Age at entry

70 years

50 years

Max. Maturity Age 75 years

60 years

Policy Term

5 yrs. and 10 yrs

Same as main plan

Sum Assured

Rs.25,000.

Min. Sum Assured - Rs.1,00,000/Max. Sum Assured - An amount up

Maximum
limit.

No

to the basic Sum Assured for Term

Assurance subject to a maximum of

Rs.25 lakh overall Option limit,
under all policies of the life
assured.
Premium Rates:
Single Premium rates for Rs.1000 Sum Assured are Rs.995 for 5 years term and Rs.
976 for 10 years term;
The Term Rider Premium depends on the age nearer birthday and the term of the
policy.
REBATES
1%

of

basic

premium

on

the

premium

in

excess

of

Rs.50,000.

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

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

GROUP SCHEME
1. Group Term Insurance Scheme
A) Nature of the Scheme:
Group (term) Insurance Scheme is meant to provide life insurance protection to
groups of people. Administration of the scheme is on group basis and cost is low.
Under Group (Term) Insurance Scheme, life insurance cover is allowed to all the
members of a group subject to some simple insurability conditions without insisting
upon any medical evidence. Scheme offers covers only on death and there is no
maturity value at the end of the term.
B) Premium Chargeable:
Group (Term) Insurance Scheme is at present offered under One Year Renewable
Group term assurance plan (OYRGTA). Every year on Annual Renewal date LIC
charges the premium depending upon the changes in size and age distribution of the
age group.

C) Different Schemes:
Group (term) Insurance Scheme has a number of varieties. The Scheme may provide
for a uniform cover to all members of the group or graded covers for different
categories of members, cover for all amounts of outstanding housing loans or vehicle
advances, or some other benefits (e.g., life cover to supplement pension or PF
benefits in case of death). The schemes may have add-ons like Double Accident
Benefit, Critical Illness Benefit, Disability benefit etc.
D) General Features of various Group Insurance Schemes:
1. PREMIUM:
The premium under such scheme may be wholly paid by the employer or the Nodal
Agency. However, the scheme may be contributory i.e. the members may also
contribute.
2. DOUBLE ACCIDENT BENEFIT:
Double Accident Benefit, i.e. payment of double the sum assured on death due to
accident (without permanent disability benefit), may be allowed under Group
Insurance Schemes for an extra premium.
3. ELIGIBILITY:
For Group Insurance Scheme in lieu of EDLIS the insurability condition is that
should be a member of the Provident Fund Scheme of the employer. For other GI
Schemes of employer-employee groups the insurability condition is that the member
should not be absent on ground of sickness on the entry date. For all non-employeremployee Group Schemes the basic insurability condition is that the member should
be in good health on the date of entry.
4. ADMINISTRATION OF THE SCHEME:
At the commencement and thereafter on each Annual Renewal Date, the Group
Policyholder will have to send all the member's data (and particulars of the new
entrants from time to time) to the P & GS unit of LIC. Detailed OYRGTA premium
calculation will be made on each Annual Renewal Date.

2. Janashree Bima Yojana (JBY)

Features

The objective of the scheme is to provide life insurance protection to the rural and
urban poor persons below poverty line and marginally above the poverty line.
ELIGIBILITY:
A person who is
*Aged between 18 and 59 years.
*Below or marginally above poverty line
*A member of any of the approved vocation/occupation groups
NODAL AGENCY:
A State Government Department which is concerned with the welfare of any such
vocation/occupation group, a Welfare Fund/ Society, Village Panchayat,NGO,SelfHelp Group,etc.
MINIMUM MEMBERSHIP SIZE:
Twenty five.
FORMS FOR JANASHREE BIMA YOJANA
1. Claim form & discharge receipt under JBY (Annexure A)
2. Application for scholarship under Shiksha Sahayog Yojana (Proforma A)
3. List of students eligible for scholarship under Shiksha Sahayog Yojana (Proforma
B)
4. Certificate of utilization ( Proforma C )

Benefits
In the events of
*Death (other than by accident) of the member, an amount of Rs.30,000/- is payable.
*death/total permanent disability, due to accident, an amount of Rs.75,000/-is
payable.
*Permanent partial disability, due to accident, an amount of Rs.37,500/- is payable.
PREMIUM:
*The premium under the scheme is Rs.200/-per annum per member. *50% of the

premium i.e. Rs.100/- will be contributed by the member and/or Nodal Agency/State
Government.
*Balance 50% will be borne by the Social Security Fund.
APPROVED VOCATION & OCCUPATIONAL GROUPS:
A) The group that can be covered are like workers in (i) Foodstuffs like khandsari
(ii) Textile
(iii) Manufacture of wood products
(iv) Manufacture of paper products
(v) Manufacture of leather products
(vi) Printing
(vii) Rubber and coal products
(viii) Chemical products like candle manufacture
(ix) Mineral products like earthen toys manufacture
(x) Fire cracker's workers
(xi)Construction workers
(xii)Other related cottage industries to be identified by Nodal
Agencies and other groups as identified by the Nodal Agency and approved by LIC.
B) The occupational groups are :
Beedi workers, Brick Kiln Workers(Jalandhar),Carpenters, Cobblers, Fisherman,
Hamals, Handicraft Artisans, Handloom Weavers, Handloom and Khadi Weavers,
Lady Tailors, Leather and Tannery Workers, Papad Workers attached to 'SEWA',
Physically Handicapped self- Employed Persons, Primary Milk Producers, Rickshaw
Pullers/ Auto Drivers, Safai Karmacharis, Salt Growers, Tendu Leaf Collectors,
Scheme for the Urban Poor, Forest Workers, Sericulture, Toddy Tappers, Powerloom
Workers, Scheme for Women in Remote Rural Hilly Areas.

PLANS NAV
The net asset value of different schemes of life insurance Corporation of India for the
insureds is as follows:
NAV TABLE

NAV'S AS ON DATE

21.08.2009
BASIC
UNIT
VALUE

EFFECTIVE
FOR

21.08.2009

NAV AS ON REPURCHASE

SALE

DATE

VALUE

VALUE

DATE OF
BIMA PLUS (140)

LAUNCH
02.02.2001

SECURED FUND

10

27.1060

25.7507

27.1060

BALANCED FUND

10

32.4856

30.8613

32.4856

RISK FUND

10

44.2874

42.0730

44.2874

DATE OF
FUTURE PLUS (172)

LAUNCH
04.03.2005

BOND FUND

10

13.1779

13.1779

13.1779

INCOME FUND

10

15.0405

15.0405

15.0405

BALANCED FUND

10

15.6018

15.6018

15.6018

GROWTH FUND

10

19.5666

19.5666

19.5666

DATE OF
JEEVAN PLUS (173)

LAUNCH
18.10.2005

BOND FUND

10

13.1729

13.1729

13.1729

SECURED FUND

10

13.3119

13.3119

13.3119

BALANCED FUND

10

13.6167

13.6167

13.6167

GROWTH FUND

10

18.1556

18.1556

18.1556

12.4484

12.4484

12.4484

DATE OF
MONEY PLUS (180)

LAUNCH
20.12.2006

BOND FUND

10

BALANCED FUND

10

11.6570

11.6570

11.6570

GROWTH FUND

10

10.3939

10.3939

10.3939

13.6993

13.6993

13.6993

12.8744

12.8744

12.5608

12.5608

DATE OF
MARKET PLUS (181)

LAUNCH
05.07.2006

BOND FUND

10

SECURED FUND

10 TAX

BALANCED FUND

10

BENEFITS
12.8744
12.5608

The aggregate amount of deduction under all the relevant sections viz. section 80C,
GROWTH FUND
10
12.9723
12.9723
12.9723
section 80CCC and section 80CCD shall not, exceed Rs.1 Lakh.
DATE OF
FORTUNE
PLUS
(187)
LAUNCH
1)
Deduction
from
Income
for payment of Premium (Sec. 80C).
23.08.2007

(a)

Life

Insurance

premia:

BOND FUND
10
12.0380
12.0380
12.0380
The insurance premia paid for a policy is eligible for deduction. The premium paid
should
be
SECUREDnot
FUND

(b)

in 10excess

Contribution

of11.2592
20%

to Deferred

of 11.2592
capital

sum

assured.
11.2592

Annuity

Plans:

BALANCED FUND
10
10.6514
10.6514
10.6514
The premia paid for a Deferred Annuity; provided such contract does not contain a
provision
exercise an option
a cash payment in
lieu of
GROWTHtoFUND
10 by the insured
10.1676to received
10.1676
10.1676
the payment of annuity is eligible
deduction.
DATEforOF
PROFIT PLUS (188)

(c)

Contribution

LAUNCH

to

Pension/Annuity

Plans:

23.08.2007
Contribution to New Jeevan Dhara-I and New Jeevan Akshay-V Schemes of LIC are
qualified
for rebate under this
BOND FUND
10section.

12.3288

12.3288

12.3288

SECURED
10 on Maturity/Death
10.9779
10.9779 proceeds10.9779
2)
IncomeFUND
tax exemption
Claims
under

Section
10(10D)
BALANCED
FUND

10

11.2509

11.2509

11.2509

All
the benefits
payable under
tax free. However10.0311
in cases
GROWTH
FUND
10 a Life Insurance
10.0311policy are10.0311
the premium paid in excess DATE
of 20% OF
of the capital sum assured within a year, benefits
GRATUITY
LAUNCH
paid
excess ofPLUS
premiums will
be taxable. The benefits from a key man Insurance
policy and any sum received16.06.2009
under Sec 80DD, Sub-section (3) are also taxable.
12.7382
12.7382
12.7382
BOND
FUND
10 New Jeevan Suraksha - I Plan (U/s. 80CCC)
3)
Jeevan
Nidhi Plan &

Amounts
paid from the
income to premiums
of the13.2628
above
INCOME FUND
10 taxable13.2628
13.2628
BALANCED FUND

10

GROWTH FUND

10
DATE OF

13.0738

13.0738

13.0738

12.4845

12.4845

12.4845

HEALTH PLUS (901)

LAUNCH
04.02.2008

HEALTH PLUS FUND

10

10.8430

10.8430

10.8430

DATE OF
MONEY are
PLUS
- I (193) LAUNCH
annuity
deductible.
22.05.2008

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

BOND FUND

10

12.3170

12.3170

12.3170

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

SECUREDand/or
FUND his family
10 members
13.0599
13.0599
assessee
policy/s.13.0599
A separate exemption

to
the extentFUND
of Rs. 15,000
an assessees12.9187
parent
BALANCED
10 for premiums
12.9187 paid for
12.9187
is also available. If any one or both of the parents are Senior citizens,
GROWTH FUND

10

12.1823

12.1823

12.1823

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

DATE OF

80D
also covers
of premium exclusively for Critical Illness
MARKET
PLUS-I payment
(191) LAUNCH
Rider.

17.06.2008

BOND
FUND
11.3897
5)
Jeevan
Aadhar Plan10(Sec.80DD)

11.3897

11.3897

SECURED FUND
10
11.3512
11.3512
11.3512
Premium paid for LICs Jeevan Aadhar Plan (for the maintenance of an handicapped
dependent)
is eligible
from11.5772
the total income
to the extent of Rs.50,000
BALANCED
FUND for deduction
10
11.5772
11.5772
and to the extent of Rs.75,000/- where handicapped dependent is suffering from
GROWTH
FUND
12.0021
12.0021
12.0021
specified
severe
disability. 10
CHILD

FORTUNE

DATE OF

LAUNCH
6) Exemption in respect
of commutation of pension under Jeevan
PLUS (194)

01.11.2008

Suraksha &

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

BOND FUND
10
10.5292
10.5292
10.5292
A payment received by way of commutation of pension from Jeevan Suraksha &
SECURED
12.8276
Jeevan
NidhiFUND
Annuity plans 10
is exempt from
tax

12.8276

12.8276

BALANCED FUND

10

12.6842

12.6842

12.6842

GROWTH FUND

10

13.3527

13.3527

13.3527

HEALTH

DATE OF

10.1429

10.1429

10.1429

PROTECTION

PLUS LAUNCH

(902)

29.04.2009

HEALTH PROTECTION
PLUS FUND

10
DATE OF

JEEVAN
PLUS (197)

SAATHI LAUNCH29.06.2009
.
10

SECURED FUND
BALANCED FUND
GROWTH FUND

10
10
10

10.0152

10.0152

10.0152

10.0091

10.0091

10.0091

10.0439

10.0439

10.0439

# Subject to Market risk ; Not guaranteed

# Past performance may not indicate future performance

CHAPTER-5

FINDINGS

FINDINGS
Findings: After completing the study following points can be drawn:
1. It has one of the single distribution networks amongst government insurance
players.
2. LIC has many numbers of insurance policies and plans having flexible to meet the
customers requirement and expectation.
3. LIC entered the market with aggressive marketing and supported by after sale
services with the help of technology.
4. All LIC Plans come with Sovereign Guarantee i.e., Government of India Guarantee
regarding repayment. Infact, as of now, only LIC plans enjoy this Government
Guarantee.

CHAPTER-6

CONCLSION

CONCLUSION
After completing the project it is concluded that LIC develop its various plans and
policies, flexible in nature, according to the requirements of its targeted market or
customers and is thus beneficial to its customers in various ways. The most important
benefit it provides to its customers is that it is a government owned company. This
lead to increase in the satisfaction level of its customer that is why LIC has more than
200 million policyholders which is equal to the fourth largest country in world.
Therefore it is not only beneficial but better than other insurance companies not only
regarding its product but also its services.

BIBLIOGRAPHY
Information and data used in the project has been collected from the
following sources:-

1. www.licindia.com
2. www.licmutual.com
3. www.lichousing.com
4. www.wikipedia.org
5. www.reportbuyer.com
6. Outlook Money Magazine
12th August 2009, 09 September 2009
7. Money Today Magazine
11 June 2009, September 2009