PROJECT REPORT
ONLIFE 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 i
Certificate from Guide ii
Acknowledgement iii Executive Summary iv CHAPTER-1 1 Introduction CHAPTER -2 4 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.
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.
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 today’s 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.
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
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
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 non-Indian 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. LIC’s 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. LIC’s 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.
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 civilization’s 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 policyholder’s 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. Vijayan2.
Managing Director:
Shri. D.K. Mehrotra
3.
Managing Director:
Shri. Thomas Mathew T.
4.
Managing Director:
Shri. A.K. Dasgupta5.
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 RajashekhranAWARDS AND ACHIVEMENTS
Brand Equity Most Trusted Brand 2009 Top in Insurance Category
Golden Peacock Innovative Product / Service Award – 2009
Loyalty Awards - 2009 Readers Digest Trusted Brand Award 2009 in the Platinum category
CNBC Awaaz Consumer Awards 2008 NDTV Profit Business Leadership Award 2008
INDY's Silver Award for Best Corporate Film
INDY's Silver Award for Best in House Magazine
IT USER 2008 NASCOM Selected Business Super brand India 2008
ASIA BRAND CONGRESS BRAND LEADERSHIP AWARD 2008
Pitch Award -" Rank 1 " India's Top 50 service Brands
Loyalty Awards 2008 - Insurance Sector
SKOCH Challengers Award 2008 for Jeevan Madhur
Readers Digest Trusted Brand Award 2008 in the Platinum category.
Golden Peacock Award for Excellence in Corporate Governance
CHAPTER-3
RESEARCH METHODOLOGY
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.
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.
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 individual’s 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 Komal Jeevan
CDA Endowment Vesting At 21 Marriage Endowment Or Educational Annuity Plan
CDA Endowment Vesting At 18
Jeevan Kishore Jeevan Chhaya Child Career Plan Child Future 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 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
LIC’s 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
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 Jeevan Mangal
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 Corporation’s life insurance business. It gets a share of the profits in the form of bonuses. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. Once declared, they form part of the guaranteed benefits of the plan. 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 year’s premium. Any extra premium(s) paid and premium(s) towards Accident Benefit are also excluded.
Corporation’s policy on surrenders:
In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death 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).
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 Corporation’s 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 year’s premium. In case of a single premium policy the guaranteed surrender value is 90% of the single premium paid excluding any extra premium. Corporation’s policy on surrenders:
In practice, the Corporation will pay a Special Surrender Value – which is either equal to or more than the Guaranteed Surrender Value. The benefit payable on surrender reflects the discounted value of the reduced claim amount that would be payable on death 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?
LIC’s 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?
Let’s 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 NIL Rs. 50,000 and Less than Rs.1
lakh 5%
Rs. 1 lakh and Less than Rs.2
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) 5 7
Mode of Payment Maximum premium paying
Yearly, Half-yearly, Quarterly, Monthly, Salary Saving Scheme 55 years No
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 Corporation’s 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.
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 year’s 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.
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.
Maximum – No limit.
Min. Sum Assured - Rs.1,00,000/-Max. Sum Assured - An amount up 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-employer-employee 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)
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,Self-Help 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:
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.
PLAN’S NAV
The net asset value of different schemes of life insurance Corporation of India for the insured’s is as follows:
NAV'S AS ON DATE 21.08.2009 EFFECTIVE FOR 21.08.2009 BASIC UNIT VALUE NAV AS ON DATE REPURCHASE VALUE SALE VALUE BIMA PLUS (140) DATE OF 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 FUTURE PLUS (172) DATE OF 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 JEEVAN PLUS (173) DATE OF 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 MONEY PLUS (180) DATE OF LAUNCH 20.12.2006 BOND FUND 10 12.4484 12.4484 12.4484 SECURED FUND 10 11.8804 11.8804 11.8804 BALANCED FUND 10 11.6570 11.6570 11.6570 GROWTH FUND 10 10.3939 10.3939 10.3939 MARKET PLUS (181) DATE OF LAUNCH 05.07.2006 BOND FUND 10 13.6993 13.6993 13.6993 SECURED FUND 10 12.8744 12.8744 12.8744 BALANCED FUND 10 12.5608 12.5608 12.5608 GROWTH FUND 10 12.9723 12.9723 12.9723 FORTUNE PLUS (187) DATE OF LAUNCH 23.08.2007 BOND FUND 10 12.0380 12.0380 12.0380 SECURED FUND 10 11.2592 11.2592 11.2592 BALANCED FUND 10 10.6514 10.6514 10.6514 GROWTH FUND 10 10.1676 10.1676 10.1676 PROFIT PLUS (188) DATE OF LAUNCH 23.08.2007 BOND FUND 10 12.3288 12.3288 12.3288 SECURED FUND 10 10.9779 10.9779 10.9779 BALANCED FUND 10 11.2509 11.2509 11.2509 GROWTH FUND 10 10.0311 10.0311 10.0311 GRATUITY PLUS DATE OF LAUNCH 16.06.2009 BOND FUND 10 12.7382 12.7382 12.7382 INCOME FUND 10 13.2628 13.2628 13.2628 BALANCED FUND 10 13.0738 13.0738 13.0738 GROWTH FUND 10 12.4845 12.4845 12.4845 HEALTH PLUS (901) DATE OF LAUNCH 04.02.2008
HEALTH PLUS FUND 10 10.8430 10.8430 10.8430
MONEY PLUS - I (193) DATE OF LAUNCH 22.05.2008 BOND FUND 10 12.3170 12.3170 12.3170 SECURED FUND 10 13.0599 13.0599 13.0599 BALANCED FUND 10 12.9187 12.9187 12.9187 GROWTH FUND 10 12.1823 12.1823 12.1823 MARKET PLUS-I (191) DATE OF LAUNCH 17.06.2008 BOND FUND 10 11.3897 11.3897 11.3897 SECURED FUND 10 11.3512 11.3512 11.3512 BALANCED FUND 10 11.5772 11.5772 11.5772 GROWTH FUND 10 12.0021 12.0021 12.0021 CHILD FORTUNE PLUS (194) DATE OF LAUNCH 01.11.2008 BOND FUND 10 10.5292 10.5292 10.5292 SECURED FUND 10 12.8276 12.8276 12.8276 BALANCED FUND 10 12.6842 12.6842 12.6842 GROWTH FUND 10 13.3527 13.3527 13.3527 HEALTH PROTECTION PLUS (902) DATE OF LAUNCH 29.04.2009 HEALTH PROTECTION PLUS FUND 10 10.1429 10.1429 10.1429 JEEVAN SAATHI PLUS (197) DATE OF LAUNCH-29.06.2009 . BOND FUND 10 10.0376 10.0376 10.0376 SECURED FUND 10 10.0152 10.0152 10.0152 BALANCED FUND 10 10.0091 10.0091 10.0091 GROWTH FUND 10 10.0439 10.0439 10.0439 # Subject to Market risk ; Not guaranteed
TAX BENEFITS
The aggregate amount of deduction under all the relevant sections viz. section 80C, section 80CCC and section 80CCD shall not, exceed Rs.1 Lakh.
1) Deduction from Income for payment of Premium (Sec. 80C).
(a) Life Insurance premia:
The insurance premia paid for a policy is eligible for deduction. The premium paid should not be in excess of 20% of capital sum assured.
(b) Contribution to Deferred Annuity Plans:
The premia paid for a Deferred Annuity; provided such contract does not contain a provision to exercise an option by the insured to received a cash payment in lieu of the payment of annuity is eligible for deduction.
(c) Contribution to Pension/Annuity Plans:
Contribution to New Jeevan Dhara-I and New Jeevan Akshay-V Schemes of LIC are qualified for rebate under this section.
2) Income tax exemption on Maturity/Death Claims proceeds under
Section 10(10D)
All the benefits payable under a Life Insurance policy are tax free. However in cases the premium paid in excess of 20% of the capital sum assured within a year, benefits paid excess of premiums will be taxable. The benefits from a key man Insurance policy and any sum received under Sec 80DD, Sub-section (3) are also taxable.
3) Jeevan Nidhi Plan & New Jeevan Suraksha - I Plan (U/s. 80CCC)
Amounts paid from the taxable income to premiums of the above
NAV'S AS ON DATE 21.08.2009 EFFECTIVE
FOR 21.08.2009 BASIC UNIT VALUE NAV AS ON DATE REPURCHASE VALUE SALE VALUE BIMA PLUS (140) DATE OF 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 FUTURE PLUS (172) DATE OF 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 JEEVAN PLUS (173) DATE OF 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 MONEY PLUS (180) DATE OF LAUNCH 20.12.2006 BOND FUND 10 12.4484 12.4484 12.4484 SECURED FUND 10 11.8804 11.8804 11.8804 BALANCED FUND 10 11.6570 11.6570 11.6570 GROWTH FUND 10 10.3939 10.3939 10.3939 MARKET PLUS (181) DATE OF LAUNCH 05.07.2006 BOND FUND 10 13.6993 13.6993 13.6993 SECURED FUND 10 12.8744 12.8744 12.8744 BALANCED FUND 10 12.5608 12.5608 12.5608 GROWTH FUND 10 12.9723 12.9723 12.9723 FORTUNE PLUS (187) DATE OF LAUNCH 23.08.2007 BOND FUND 10 12.0380 12.0380 12.0380 SECURED FUND 10 11.2592 11.2592 11.2592 BALANCED FUND 10 10.6514 10.6514 10.6514 GROWTH FUND 10 10.1676 10.1676 10.1676 PROFIT PLUS (188) DATE OF LAUNCH 23.08.2007 BOND FUND 10 12.3288 12.3288 12.3288 SECURED FUND 10 10.9779 10.9779 10.9779 BALANCED FUND 10 11.2509 11.2509 11.2509 GROWTH FUND 10 10.0311 10.0311 10.0311 GRATUITY PLUS DATE OF LAUNCH 16.06.2009 BOND FUND 10 12.7382 12.7382 12.7382 INCOME FUND 10 13.2628 13.2628 13.2628 BALANCED FUND 10 13.0738 13.0738 13.0738 GROWTH FUND 10 12.4845 12.4845 12.4845 HEALTH PLUS (901) DATE OF LAUNCH 04.02.2008
HEALTH PLUS FUND 10 10.8430 10.8430 10.8430
MONEY PLUS - I (193) DATE OF LAUNCH 22.05.2008 BOND FUND 10 12.3170 12.3170 12.3170 SECURED FUND 10 13.0599 13.0599 13.0599 BALANCED FUND 10 12.9187 12.9187 12.9187 GROWTH FUND 10 12.1823 12.1823 12.1823 MARKET PLUS-I (191) DATE OF LAUNCH 17.06.2008 BOND FUND 10 11.3897 11.3897 11.3897 SECURED FUND 10 11.3512 11.3512 11.3512 BALANCED FUND 10 11.5772 11.5772 11.5772 GROWTH FUND 10 12.0021 12.0021 12.0021 CHILD FORTUNE PLUS (194) DATE OF LAUNCH 01.11.2008 BOND FUND 10 10.5292 10.5292 10.5292 SECURED FUND 10 12.8276 12.8276 12.8276 BALANCED FUND 10 12.6842 12.6842 12.6842 GROWTH FUND 10 13.3527 13.3527 13.3527 HEALTH PROTECTION PLUS (902) DATE OF LAUNCH 29.04.2009 HEALTH PROTECTION PLUS FUND 10 10.1429 10.1429 10.1429 JEEVAN SAATHI PLUS (197) DATE OF LAUNCH-29.06.2009 . BOND FUND 10 10.0376 10.0376 10.0376 SECURED FUND 10 10.0152 10.0152 10.0152 BALANCED FUND 10 10.0091 10.0091 10.0091 GROWTH FUND 10 10.0439 10.0439 10.0439 # Subject to Market risk ; Not guaranteed
