project-on-lic-india.pdf

A
PROJECT REPORT ON
CAMPARATIVE STUDY OF
LIFE INSURANCE CORPORATION OF INDIA
Submitted to:
Mr. AMIT GUPTA
PROJECT GUIDE & FACULTY
(MAHARAJA AGRASEN INSTITUTE OF
MANAGEMENT STUDIES)
Submitted By:
VIPUL
SUBMITTED IN PARTIAL FULFILMENT OF
BACHELOR OF BUSINESS ADMINISTRATION
(GENERAL 5th Semester)
MAHARAJA AGRASEN INSTITUTE OF MANAGEMENT STUDIES

(AFFILIATED TO GURU GOBIND SINGH INDRAPRASTHA
UNIVERSITY, DELHI)
CONTENTS
 CERTIFICATE OF COMPANY………………….……….. i
 CERTIFICATE OF INSTITUTE………………………….. ii
 ACKNOWLEDGEMENT…………………………………...iii
1. EXECUTIVE SUMMERY
2 INTRODUCTION
3. RESEARCH OBJECTIVE & METHODOLOGY
4. INTRODUCTION OF THE COMPANY
5. PRODUCT OF LIC
6. GROWTH OF PVT. LIFE INSURANCE COMPANIES IN THE LAST 5
YEARS
7. CURRENT STANDING OF PVT. LIFE INSURANCE COMPANIES IN
URBAN SECTOR
8. ROLE OF FOREIGN COMPANIES IN INDIA
9. FINDINGS
10. IMPORTANCE OF JOINT VENTURE
11. CONCLUSION
12. RECOMMENDATIONS
13. BIBLIOGRAPHY
2

CERTIFICATE
This is to certify that project entitled “Comparative Study of
Life Insurance Corporation of India” submitted by Mr.
VIPUL BENIWAL (Enrolment no. - 0221471708) has been
done under my guidance and supervision in fulfillment of the
requirement for the award of Bachelor of Business
Administration (General).
The work and analysis mentioned in this project report have
been undertaken by the candidate himself and necessary
references have been recognized and acknowledged in the text
of the report.
Mr. Amit Gupta
(Project guide & faculty)
MAIMS
3

ACKNOWLEDGEMENT
Co-operation and building up of moral are the essence of success. These
are two factors that go a long way in achieving it. It is a Herculean task,
which lacks these two determinants of success. Summer training was an
exposure to corporate environment. It was an opportunity and great
pleasure for me to be in such an environment and having interaction with
concerned people.
I am highly obliged to Mr. Rahul Dutt Mudgal (Development officer,
LIC Karol Bagh branch) who provided me the opportunity for doing my
summer training at LIC, and would like to thank him for their guidance
and help which had made it possible for me to complete my project work
successfully.
Finally, I would like to thank Dr. N.K.Kakkar (Director), Maharaja
Agrasen Institute of Management Studies and Mrs. Amit Gupta, my
project guide at the institute, for their enlightening and meticulous
guidance for the consummation and evaluating of this project.
I also wish to pay my sincere regards to all my respected teachers who
helped me build a concrete platform before sending me for training so
that I can land out firmly in all respects.
VIPUL
BBA (Gen),
4

EXECUTIVE SUMMARY
Someone has greatly said that practical knowledge is far better than
classroom teaching. During this project I fully realized this and come to
know about the present real world of Insurance sector. It includes all the
activities involved in providing insurance products to the final customers.
I am pleased to know about the consumers’ wants and competitors
activities in the real world of Insurance.
The subject of my study is to analyze the present insurance sector and
products offered by LIC by applying various tools like cold calling and
through direct interaction with customer’s. I have also done research on
the growth of private life insurance companies in the last five years.
The report contains first of all brief introduction about the
company. Then it contains the current status of private
insurance companies and foreign insurance companies in
India.
I also put forward recommendations of the consumers and conclusions
that will help LIC to provide consumer satisfactory services in the
insurance sector.
5

INTRODUCTION
Insurance is a social device where uncertain risks of individuals
may be combined in a group and thus made more certain - small
periodic contributions by the individuals provide a found out of
which those who suffer losses may be reimbursed. In addition to
being a means to protect oneself, the insurance Industry is an
efficient conduit for the saving of people to be channeled towards
economic growth. In India, the Insurance Industry7 is more than
150 years old. Today, it is monopolized by two PSU's in their
respective fields of life and General Insurance. However, with the
successful passage IRDA Bill through both houses of parliament in
December 1999 the sector has been opened up to private players.
This will provided much. Needed impetus to the Industry and will
improve the quality of service and products and will also increase
employment opportunities. There are still some issues their need to
be sorted out, particularly with regard to the status of
intermediaries as envisaged by the Insurance Regulatory Authority.
RESEARCH OBJECTIVE
6

The report gives the brief background of the sector and proceeds to
highlight the short comings of the existing setup and players. The
benefits of liberalized sector are enumerated. The report also tries
to identify the market potential for insurance products and the
strategy that can we employed to exploit the same. The stress is
also given on knowing the awareness level of general public.
7

RESEARCH METHODOLOGY
To conduct the market research first of all it is necessary to create a research design.
A research design is basically a blue print of how a research is to be conducted, it may
include;
1. Choosing the approach
2. Determining the types of data needed.
3. Locating the source of data.
4. Choosing a method of data.
8

RESEARCH DESIGN
Basically there are 3 types of approaches used during the any research:
1. Exploratory
2. Descriptive
3. Experimental.
During this research Descriptive and Exploratory approach is taken into
consideration because of the availability of relevant information to describe the
relationships between the marketing problem and the available information.
9

TYPES OF DATA USED:
Both primary and secondary data is used in the research.
Data Collection Methods
To conduct the market research the data is collected by two sources.
SECONDARY DATA
Secondary data is one which already exists and is collected from the published
sources.
The sources from which secondary data was collected are:
• Newspapers and Magazines like Economic Times, Insurance Times, and
Insurance Post.
• Internet
PRIMARY DATA
The primary sources of data refer to the first hand information Primary data is
collected during the survey with the help of Questionnaires.
10

INTRODUCTION OF THE COMPANY
“LIFE INSURANCE CORPORATION OF INDIA (LIC)
Life Insurance Corporation of India (LIC) was formed in September, 1956, by an Act
of Parliament, viz., Life Insurance Corporation Act, 1956, with capital contribution
from the Government of India. The then Finance Minister, Shri C.D. Deshmukh,
while piloting the bill, outlined the objectives of LIC thus to conduct the business
with the utmost economy, and a spirit of trusteeship; to charge premium no higher
than warranted by strict actuarial considerations; to invest the funds for obtaining
maximum yield for the' policy holders consistent with safety of the capital; to render
prompt and efficient service to policy holders, thereby making insurance widely
popular. Since nationalization, LIC has built up a vast network of 2,048 branches, 100
divisions and 7 zonal offices spread over the country. The Life Insurance Corporation
of India also' transacts business abroad and has offices in Fiji, Mauritius and United
Kingdom. LIC is associated with joint ventures abroad in the field of insurance,
namely, Ken-India ,Assurance Company Limited, Nairobi; United Oriental Assurance
Company Limited, Kuala Lumpur and Life Insurance Corporation (International) E.C.
Bahrain. The Corporation has registered a joint venture company in 26th
December,
2000 in Katmandu, Nepal by the name of Life Insurance Corporation (Nepal) Limited
in collaboration with Vishal Group Limited, a local industrial Group. An off-shore
company L.I.C. (Mauritius) Off-shore Limited has also been set up in 2001 to tap the
11

African insurance market.
General Insurance:
General insurance business in the country was nationalized with effect from 1st
January, 1973 by the General Insurance Business (Nationalization) Act, 1972. More
than 100 non-life insurance companies including branches of foreign companies
operating within viz., the National Insurance Company Ltd., The New India
Assurance Company Ltd., The Oriental Insurance Company Ltd., and The United
India Insurance Company Ltd. with head offices at Calcutta, Bombay, New Delhi and
Madras, respectively. General Insurance Corporation (GIC) which was the holding
company of the four public sector general insurance companies has since been
delinked from the later and has been approved as the "Indian Reinsurer" since 3rd
November 2000. The share capital of GIC and that of the four companies are held by
the Government of India. All the five entities are Government companies registered
under the Companies Act, 1956. The general insurance business has grown in spread
and volume after nationalization. The four companies have 2699 branch offices, 1360
divisional offices and 92 regional offices spread all over the country. GIC and its
subsidiaries have representation either directly through branches or agencies in 16
countries and through associate locally incorporated subsidiary companies in 14 other
countries. A wholly- owned subsidiary company of GIC, i.e. Indian International Pvt.
Ltd. is operating in Singapore and there is a joint venture company, viz. Ken-India
Assurance Ltd. in Kenya. A new wholly owned subsidiary called New India
International Ltd., UK has also been registered.
12

PRODUCTS OF LIC
Whole Life with Profits Plan – 002
Features:
This plan is mainly devised to create an estate for the heirs of the policyholder as the
plan basically provides for payment of sum assured plus bonuses on the death of the
policyholder. However, considering the increased longevity of the Indian population,
the Corporation has amended the above provision, thereby proving for payment of
sum assured plus bonuses in the form of maturity claim on completion of age 80 years
or on expiry of term of 40 years from date of commencement of the policy whichever
is later.
The premiums under the policy are payable up to age 80 years of the policyholder or
for a term of 35 years whichever is later. If the payment of premium ceases after 3
years, a paid-up policy for such reduced sum assured will be automatically secured
provided the reduced sum assured exclusive of any attached bonus is not less than
Rs.250/-. Such reduced paid-up policy is not entitled to participate in the bonus
declared thereafter but the bonuses already declared on the policy will remain attach,
provided the policy is converted in to a paid-up policy after the premiums are paid for
5 years.
Suitable For:
This policy is suitable for people of all ages who wish to protect their families from
financial crises that may occur owing to the policyholder's premature death.
13

BENEFITS
SURVIVAL BENEFIT:
Sum assured plus accrued bonuses and the terminal bonuses, if any; on the
policyholder attaining age 80 years or on expiry of term of 40 years from the date of
commencement of the policy whichever is later.
DEATH BENEFIT:
Sum assured plus accrued bonuses and the terminal bonuses, if any, on the death of
the policyholder are paid to his/her nominees/heirs.
LIMITED PAYMENT WHOLE LIFE - PLAN 005 (WITH PROFITS)
Features:
This is the best form of life assurance for family provision since it enables the Life
Assured to pay all the premiums during the ordinarily vigorous and most productive
years of life. He need not pay any premium in the later stages of life if and when his
conditions might become adverse.
With Profits Limited Payments Policies do not cease to participate in profits after
completion of the premium paying period but continue to share in the periodical
Bonus Distribution until the death of the Life Assured.
The Without-Profit option is available under Table no. 3. If the policyholder pays at
least 3 years' premiums and then discontinues paying any more premiums, a reduced
paid-up assurance policy comes into force. Such a reduced paid-up Policy will not be
entitled to participate in the profits declared. Thereafter, but such Bonus as has
already been declared on the Policy will remain attached thereto. The premium paying
14

term under this plan is five years minimum and 55 years maximum.
BENEFITS
Survival benefits
If the Life Assured survives the premium paying period and the policy continues in
full force, provided all premiums have been paid, but no further premiums are
required to be paid.
Death Benefits:
Sum Assured plus Bonuses accrued and vested in the policy.
Plan Parameters:
Minimum Maximum
Entry age 12 (nearer birthday) 60
Sum assured (Rs.) 50000 NO LIMIT
Term (years) 5 55 (Max. Premo ceasing
age is 70)
Mode of Payment Maximum premium paying period Policy loan
available
Yearly, half yearly 80 yrs. of age or 40 yrs.of yes
,quarterly, monthly premium paying term from the
, salary saving date of commencement whichever
Scheme is later.
15

ENDOWMENT WITH PROFIT PLAN - 014
FEATURES:
• Moderate Premiums
• High bonus
• High liquidity
• Savings oriented
This policy not only makes provisions for the family of the Life Assured in event of
his early death but also assures a lump sum at a desired age. The lump sum can be
reinvested to provide an annuity during the remainder of his life or in any other way
considered suitable at that time.
Premiums are usually payable for the selected term of years or until death if it occurs
during the term period.
Suitable For:
Being an endowment assurance policy, this plan is apt for people of all ages and
social groups who wish to protect their families from a financial setback that may
occur owing to their demise.
The amount assured if not paid by reason of his death earlier will payable at the end
of the endowment term where it can be invested in an annuity provision for the rest of
the policyholder's life or in any other way he may think most suitable at that time.
16

BENEFITS
Disability Benefit:
In case policy holder becomes totally and permanently disabled due to an accident
before reaching the age of 70 and the policy is in full force, he will not be required to
pay further premiums, (the Disability Benefit is available in respect of the first
Rs.20000 sum assured on anyone life) and the policy will continue to be in force.
Accident Benefit:
By paying a small extra premium of Rs. l per Rs. 1000/- sum assured per year he or
his family are entitled to the following benefits on death or permanent disability
caused by accident. Even students above the age of 18 years can avail of this benefit.
Premium Stoppage:
If payment of premiums ceases after at least THREE years' premiums have been
paid , a free paid-up policy for a reduced sum assured will be automatically secured
provided the reduced sum assured, exclusive of any attached bonus, is not less than
Rs. 250/-. The reduced sum assured will become payable on the event as stipulated in
the policy.
Bonus:
Is there anything extra payable besides the sum assured at the time of claim
settlement? Yes, but only if it is a 'with profits' policy. Every year the Life Insurance
Corporation distributes its surplus among policyholder to 'with profits' polices in the
form of bonuses. Substantial bonuses have been declared in the past after each
valuation of policy liabilities.
17

BENEFITS
Survival benefits:
Payment of full Sum' Assured + Vested Bonus + Final Additional bonus, if any.
Death Benefits:
Payment of full sum assured + Vested Bonus.
Plan Parameters:
Minimum Maximum
Entry Age (years) 12 65
Sum Assured (Rs.) 50000 no limit
Term (years) 5 55
Mode Of Payment Max Maturity Age Policy loan available
Monthly, Quarterly, 75 years yes
Half Yearly, Yearly,
Salary Saving Scheme.
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ANMOL JEEVAN - I (WITHOUT PROFITS)
BENEFITS
On Death during the Term of the Policy: Sum Assured
On Maturity : Nil
RESTRICTIONS
(A) Minimum age at entry : 18 years (completed)
(B) Maximum age at entry : 55 years (nearer
birthday)
(C) Maximum age at maturity : 65 years
(D) Minimum Term : 5 years
(E) Maximum Term : 25 years
(F) Minimum Sum Assured : Rs. Five Lakh
(G) Maximum Sum Assured : Rs. Three Crore (Inclusive of all
term Assurance plans)
Note: The policy would be issued in multiples of Rs. one lakh for Sum Assured
above Rs. five lakh.
(H) Mode of Premium Payment: Yearly, Half- Yearly and Single premium.
(G) Rebates:
• Sum Assured Rebate: NIL in case of regular premium policies and Re. l
Sum Assured for policies of Rs.25 lakh and above in case of single
premium policies.
• Mode Rebate : 1% of Annual premium for yearly mode and nil for
19

Half-Yearly mode.
UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS:
The plan is available to Standard and Sub-standard lives (upto Class VI EMR). This
plan is also available to female lives (category I and II lives only) and to physically
handicapped persons subject to certain conditions. Standard age proof will have to be
submitted along with the Proposal Form.
PAID-UP AND SURRENDER VALUE:
• The policy will not acquire any paid-up value.
• No Surrender Value will be available under this plan.
GRACE PERIOD FOR NON-FORFEITURE PROVISIONS:
A grace period of 15 days will be allowed for payment of yearly or half-yearly
premiums. If death occurs within this period and before the payment of the premium
then due, the policy will still be valid and the Sum Assured paid after deduction of the
said premium as also unpaid premiums falling due before the next policy anniversary
of the Policy. If the premium is not paid before the expiry of the days of grace, the
Policy gets lapsed.
20

REVIVAL
If the Policy has lapsed, it may be revived during the life time of the Life Assured, but
before the date of expiry of policy term, on submission of proof of continued
insurability to the satisfaction of the Corporation and the payment of all the arrears of
premium together with interest at such rate as may be prevailing at the time of the
payment. The corporation reserves the right to accept or decline the revival of
discontinued policy. The revival of the discontinued policy shall take effect only after
the same is approved by the Corporation and is specifically communicated to the Life
Assured. The cost of the Medical reports, including Special Reports, if any, required
for the purposes of revival of the policy, should be borne by the Life Assured.
PAYMENT OF CLAIMS
No Claims concession will be applicable to this Policy.
BACK-DATING INTEREST
The policy can be back dated within the financial year. No dating back interest shall
be charged.
BENEFITS
Survival benefits:
If one or both the lives survive to the maturity date, the sum assured, along with the
accumulated bonus, is payable.
21

Death Benefits:
In case either of the couple dies during the policy's term, two things happen. One, LIC
pays to the surviving spouse the full sum assured. And, two, the policy continues on
the life of the surviving partner without him/her having to pay any further premiums,
i.e. the life cover on the survivor continues free of cost.
The sum assured is again be payable on the death of the other partner in case both the
husband and wife were to die during the term of the policy. Vested bonus would also
be paid along with the sum assured on the second death.
NEW INSURANCE SCHEMES
Universal Health Insurance Scheme
The Universal Health Insurance policy is available to groups of 100 or more families.
The policy provides for reimbursement of medical expenses upto Rs.30000/- towards
hospitalization floated amongst the members of the family, death cover due to an
accident for Rs.25000 to the earning head of the family and compensation due to loss
of earning head of the family @ Rs.50/- per day upto a maximum of 15 days, after a
waiting period of three days, when the earning head of the family is hospitalized. The
premium under the policy is Rs.1! - Per day (Le. Rs.365/-per annum) for an
individual, Rs. 1.50 per day for a family of five limited to spouse and children (i.e.
Rs.548 per annum), and Rs.2/- per day (i.e. Rs. 730 per annum) for covering
dependent parents within the overall family size of seven. A subsidy of Rs. 100 per
year towards annual premium for "Below Poverty Life" families is also provided
22

under the Scheme.
For purpose of this policy HOSPITAL means:
• Any Hospital/Nursing home registered with the local authorities and under the
supervision of a registered and qualified Medical practitioner.
• Hospital, Nursing Home runs by Government.
• Enlisted hospitals run by NGOs/ Trusts/ selected private hospitals with fixed
schedule of charges.
• Hospitalization should be for a minimum period of 24 hours.
However, this time limit is not applied to some specific treatments and also where due
to technological advancement hospitalization for 24 hours may not be required.
Main Exclusions:
• All pre-existing diseases.
• Corrective, cosmetic or aesthetic dental surgery or treatment.
• Cost of spectacles, contact lens and hearing aid.
• Primarily diagnostic expenses not related to sickness/injury.
• Treatment for Pregnancy, Childbirth, Miscarriage, abortions etc.
Age Limitations:
This policy covers people between the age of 3 months to 65 years.
Floater Basis:
The benefit of family' will operate on floater basis i.e. the total reimbursement of Rs.
30,000/- can be availed of individually or collectively by members of the family.
23

Insurance plans:
As individuals it is inherent to differ. Each individual’s insurance needs and
requirements are different from that of the others. LIC’s Insurance Plans are a policy
that talk to you individually and gives the most suitable options that can fit ones’
requirement.
JeevanAnurag KomalJeevan
CDAEndowmentVestingAt21 MarriageEndowmentOr
EducationalAnnuityPlan
CDAEndowmentVestingAt18
JeevanKishore JeevanChhaya
ChildCareerPlan ChildFuturePlan
JeevanAadhar
JeevanVishwas
TheEndowmentAssurancePolicy
TheEndowmentAssurancePolicy-LimitedPayment
JeevanMitra(DoubleCoverEndowmentPlan)
JeevanMitra(TripleCoverEndowmentPlan)
JeevanAnand
NewJanarakshaPlan
JeevanAmrit
JeevanShree-I
JeevanPramukh
24

TheMoneyBackPolicy-20Years
TheMoneyBackPolicy-25Years
JeevanSurabhi-15Years
JeevanRekha (closedforsale)
BimaBachat
JeevanBharati
TheWholeLifePolicy
TheWholeLifePolicy-LimitedPayment
TheWholeLifePolicy-SinglePremium
JeevanRekha (closedforsale)
JeevanAnand
JeevanTarang
TwoYearTemporaryAssurancePolicy
TheConvertibleTermAssurancePolicy
AnmolJeevan-I
AmulyaJeevan
JeevanSaathi MortgageRedemption
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.
• Jeevan plus
• Future plus
25

• Bima plus
• Market plus
• Money plus
• Profit plus
• Fortune plus
Fortune plus:
It is a unit linked assurance plan where premium payment term (PPT) is 5 years and
the premium payable in the first year will be 50% of total premium payable under the
policy. The level of cover will depend on the level of premium you agree to pay.
Four types of investment funds are offered. Premiums paid after allocation charge will
purchase units of the Fund type chosen. The Unit Fund is subject to various charges
and value of the units may increase or decrease, depending on the Net Asset Value
(NAV). The plan therefore serves the purpose of insurance-cum-investment.
1. Payment of Premiums: You may pay premiums regularly at yearly, half-yearly,
quarterly or monthly (ECS) intervals for 5 years. The minimum First year premium
will be Rs.20,000/- and you may pay any amount exceeding it. From second year
onwards each year’s premium will be 25% of the first year premium.
Other Features:
i) Partial Withdrawals: You may encash the units partially after the third policy
anniversary subject to the following:
i) In case of minors, partial withdrawals shall be allowed from the policy anniversary
coinciding with or next following the date on which the life assured attains majority
(i.e. on or after18th birthday).
ii) Partial withdrawals may be in the form of fixed amount or in the form of fixed
number of units.
iii) For 2 years’ period from the date of withdrawal, the Sum Assured under the Basic
plan shall be reduced to the extent of the amount of partial withdrawals made.
iv) Under policies where less than 3 years’ premiums have been paid and further
premiums are not paid, the partial withdrawals shall not be allowed.
v) Under policies where atleast 3 years’ premiums have been paid, partial withdrawal
will be allowed subject to Policyholder’s Fund Value being atleast Rs. 10,000/-.
ii) Switching: You can switch between any fund types for the entire Fund Value
26

during the policy term subject to switching charges, if any.
iii) Discontinuance of premiums: If premiums are payable either yearly, half-yearly,
quarterly or monthly (ECS) and the same have not been duly paid within the days of
grace under the Policy, the Policy will lapse. A lapsed policy can be revived during
the period of two years from the due date of first unpaid premium.
I) Where atleast 3 years’ premiums have been paid, the Life Cover and Accident
Benefit rider, if any, shall continue during the revival period.
During this period, the charges for Mortality and Accident Benefit cover, if any, shall
be taken, in addition to other charges, by canceling an appropriate number of units out
of the Policyholder’s Fund Value every month. This will continue to provide relevant
risk covers for:
i. two years from the due date of first unpaid premium, or
ii. Till the date of maturity, or
iii. Till such period that the Policyholder’s Fund Value reduces to Rs. 5,000/-,
whichever is earlier.
The benefits payable under the policy in different contingencies during this period
shall be as under:
A. In case of Death: Higher of Sum assured under the Basic Plan or the Policyholder’s
Fund Value. The Sum Assured shall be subject to provisions of Partial Withdrawals
made, if any.
B. In case of Death due to accident: Accident Benefit Sum Assured in addition to the
amount under A above, if Accident Benefit is opted for.
C. On Maturity: The Policyholder’s Fund Value.
D. In case of Surrender (including Compulsory Surrender): The Policyholder’s Fund
Value. The Surrender value, however, shall be paid only after the completion of 3
policy years.
E. In case of Partial Withdrawals: For 2 year’s period from the date of withdrawal, the
sum assured under the basic plan shall be reduced to the extent of the amount of
partial withdrawals made.
II) Where the policy lapses without payment of at least 3 years’ premiums, the Life
Cover and Accident Benefit rider cover, if any, shall cease and no charges for these
benefits shall be deducted. However, deduction of all the other charges shall continue.
The benefits under such a lapsed policy shall be payable as under:
27

F. In case of Death: The Policyholder’s Fund Value.
G. In case of death due to accident: Only, the amount as under F above.
H. In case of Surrender (including Compulsory Surrender): Policyholder’s Fund
Value / monetary value as the case may be, shall be payable after the completion of
the third policy anniversary. No amount shall be payable within 3 years from the date
of commencement of policy.
I. In case of Partial withdrawal: Partial Withdrawals shall not be allowed under such a
policy even after completion of 3 years period.
iv) Revival: If due premium is not paid within the days of grace, the policy lapses. A
lapsed policy can be revived during the period of two years from the due date of first
unpaid premium or before maturity, whichever is earlier. The period during which the
policy can be revived will be called “Period of revival” or “revival period”.
If premiums have not been paid for at least 3 full years, the policy may be revived
within two years from the due date of first unpaid premium. The revival shall be made
on submission of proof of continued insurability to the satisfaction of the Corporation
and the payment of all the arrears of premium without interest.
If at least 3 full years’ premiums have been paid and subsequent premiums are not
paid, the policy may be revived within two years from the due date of first unpaid
premium but before the date of maturity. No proof of continued insurability shall be
required but all arrears of premium without interest shall be required to be paid.
The Corporation reserves the right to accept the revival at its own terms or decline the
revival of a lapsed policy. The revival of a lapsed policy shall take effect only after
the same is approved by the Corporation and is specifically communicated in writing
to the Proposer / Life Assured.
Irrespective of what is stated above, if less than 3 years’ premiums have been paid and
the Policyholder’s Fund Value is not sufficient to recover the charges, the policy shall
be terminated and thereafter revival will not be entertained. If 3 years’ or more than 3
years’ premiums have been paid and the Policyholder’s Fund Value reduces to Rs.
5000/-, the policy shall terminate and Policyholder’s Fund Value as on such date shall
be refunded to the Life Assured and thereafter revival will not be allowed.
v) Settlement Option: When the policy comes for maturity, you may exercise
“Settlement Option” and may receive the policy money in instalments spread over a
period of not more than five years from the date of maturity. There shall not be any
life cover during this period. The value of installment payable on the date specified
shall be subject to investment risk i.e. the NAV may go up or down depending upon
the performance of the fund.
Reinstatement:
A policy once surrendered will not be reinstated.
28

Risks borne by the Policyholder:
i) LIC’s Fortune Plus is a Unit Linked Life Insurance product which is different from
the traditional insurance products and are subject to the risk factors.
ii) The premium paid in Unit Linked Life Insurance policies are subject to investment
risks associated with capital markets and the NAVs of the units may go up or down
based on the performance of fund and factors influencing the capital market and the
insured is responsible for his/her decisions.
iii) Life Insurance Corporation of India is only the name of the Insurance Company
and LIC’s Fortune Plus is only the name of the unit linked life insurance contract and
does not in any way indicate the quality of the contract, its future prospects or returns.
iv) Please know the associated risks and the applicable charges, from your Insurance
agent or the Intermediary or policy document of the insurer.
v) The various funds offered under this contract are the names of the funds and do not
in any way indicate the quality of these plans, their future prospects and returns.
vi) All benefits under the policy are also subject to the Tax Laws and other financial
enactments as they exist from time to time.
Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return
the policy to us within 15 days.
Loan:
No loan will be available under this plan.
Assignment:
Assignment will be allowed under this plan.
Exclusions: any amount exceeding it. From second year onwards each year’s
premium will be 25% of the first year premium.
In case the Life Assured commits suicide at any time within one year, the Corporation
will not entertain any claim by virtue of the policy except to the extent of the
Policyholder’s Fund Value on death.
29

MARKET PLUS
“IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS
BORNE BY THE POLICYHOLDER"
LIC’s MARKET PLUS:
This is a unit linked deferred pension plan. You can take the plan with or without risk
cover. You can also choose the level of cover within the limits, which will depend on
whether the policy is a Single premium or Regular premium contract and on the level
of premium you agree to pay.
The allocated premiums will be applied to purchase units as per the Fund type chosen.
Your Unit Account will be subject to deduction of charges as specified in the Policy
Conditions. The value of the units in the Unit Fund may increase or decrease,
depending on the investment return of the assets representing the chosen Fund.
i. Payment of Premiums: You may pay premiums regularly at yearly, half-
yearly or quarterly intervals over the term of the policy. The minimum annual
premium will be Rs.5, 000/- increasing thereafter in multiples of Rs.1, 000/-.
Alternatively, a Single premium can be paid subject to a minimum of
Rs.10,000 and thereafter in multiples of Rs.1, 000.
ii. Benefits:
A) Death Benefit:
If the Life cover is opted for, the Sum Assured under the Basic Plan together
with the Fund Value of units either as a lump sum or as pension. In case the
policy is taken without life cover, then the Fund Value of the units held in the
Policyholder’s Unit Account shall be payable either as a lump sum or as a
pension.
The amount of pension will depend on the then prevailing immediate annuity
rates under the annuity option chosen.
B) Benefit on Vesting:
30

On your surviving to the date of vesting, the Fund Value of the units held in
your Unit Account will compulsorily be utilized to provide a pension based on
the then prevailing immediate annuity rates under the relevant annuity option.
However, you may opt to commute up to one-third of the Benefit to be paid as
a lump sum. Further, you may choose to purchase pension from LIC or other
life insurance company.
Accident Benefit Option: If you have opted for life cover, you may opt for
Accident Benefit equal to life cover subject to minimum Rs. 25,000 and
maximum Rs. 50 lakh (taken all policies with LIC of India and other insurers).
In case of death by Accident, an additional sum equal to Accident benefit will
be payable.
Eligibility Conditions And Other Restrictions:
Basic Plan
Minimum Age at entry : 18 years completed
Maximum Age at entry : 70 years (age nearer birthday). However if
life cover is opted for, then 65 years
Minimum Age at vesting : 40 years (age last birthday)
Maximum Vesting Age : 75 years (age last birthday)
Minimum Deferment Term : 5 years
Minimum Sum Assured : Rs. 25,000 for Single premium
Rs. 50,000 for Regular premium
Maximum Sum Assured : Single Premium - Equal to single premium
Regular Premium - 20 times of the annualized
premium
i. Investment of Funds: The premiums allocated to purchase units will be
strictly invested according to the investment pattern committed in various fund
types. Various types of fund and their investment pattern will be as under:
Fund Type I Short-term investments
such as money
market instruments
(including Govt.
Securities & Corporate
Debt)
Investment in
Listed Equity
Shares
Bond Fund Not less than 80% 100% Nil
Secured Fund Not less than 65% Not more than 85% Not less than
15% & not more
than 35%
31

Balanced Fund Not less than 50% Not more than 70% Not less than
30% & not more
than 50%
Growth Fund Not less than 20% Not more than 40% Not less than
60% & not more
than 80%
ii. The Policyholder has the option to choose any ONE of the above 4 funds. In
case no fund has been opted for, the allocated premiums shall, by default, be
invested in the SECURED FUND.
iii. Method of Calculation of Unit price: Units will be allotted based on the Net
Asset Value (NAV) of the respective fund as on the date of allotment. There is
no Bid-Offer spread (the Bid price and Offer price of units will both be equal
to the NAV). The NAV will be computed on daily basis and will be based on
investment in Government / Government Guaranteed Securities /
Corporate Debtnt performance, Fund Management Charge and whether fund
is expanding or contracting under each fund type.
iv. Charges under the Plan: Units will be allotted based on the Net Asset Value
(NAV) of the respective fund as on the date of allotment. There is no Bid-
Offer spread (the Bid price and Offer price of units will both be equal to the
NAV). The NAV will be computed on daily basis and will be based on
investment performance, Fund Management Charge and whether fund is
expanding or contracting under each fund type.
(A) Premium Allocation Charge: This is the percentage of the premium
appropriated towards charges from the premium received. The balance known
as allocation rate constitutes that part of the premium which is utilized to
purchase (Investment) units for the policy. The allocation charges are as
below:
For Single premium policies: 3.3%
For Regular premium policies:
Premium Band (per annum)
Allocation charge
First Year Thereafter
5,000 to 75,000 16.50% 2.50%
75,001 to 1,50,000 15.75% 2.50%
1,50,001 to 3,00,000 15.00% 2.50%
3,00,001 to 5,00,000 14.25% 2.50%
5,00,001 and above 13.50% 2.50%
32

v.
Allocation charge for Top-up: 1.25%
(B) Charges for Risk Covers:
Mortality Charge: This is the cost of insurance cover. These are age specific
and will be taken every month.
Accident Benefit charge: This is the cost of Accident Benefit rider and will
be levied every month at the rate of Rs. 0.50 per thousand Accident Benefit
Sum Assured per policy year.
vi. (C) Other Charges:
Policy Administration charge: Rs. 60/- per month during the first policy
year and Rs. 20/- per month thereafter, throughout the term of the policy.
Fund Management Charge: This is the charge levied as a percentage of the
value of units and shall be appropriated by adjusting NAV at following rates:
0.75% p.a. of Unit Fund for Bond Fund 1.00% p.a. of Unit Fund for ?Secured?
Fund 1.25% p.a. of Unit Fund for Balanced Fund 1.50% p.a. of Unit Fund for
Growth Fund.
Switching Charge: This is the charge levied on switching of monies from one
fund to another. Within a given policy year 4 switches will be allowed free of
charge. Subsequent switches in that year shall be subject to a switching charge
of Rs. 100 per switch.
Bid/Offer Spread: Nil.
Surrender Charge: Nil
Service Tax Charge: A service tax charge shall be levied on the Mortality
and Accident Benefit rider charge, if any, on a monthly basis. The level of this
charge will be as per the rate of service tax as applicable from time to time.
Presently, the rate of Service Tax is 12% with an educational cess at the rate of
2% thereon and hence effective rate is 12.24%.
Miscellaneous Charge: This is a charge levied for an alteration within the
contract, such as reduction in policy term, change in premium mode, etc. An
alteration may be allowed subject to a charge of Rs. 50/-.
(D) Right to revise charges: The Corporation reserves the right to revise all
or any of the above charges except the premium allocation charge and charges
for risk covers, with the prior approval of IRDA.
vii. Although the charges are reviewable, they will be subject to a cap for which
please refer to the policy document.
33

viii. Surrender: The surrender value, if any, is payable only after the completion
of the third policy anniversary both under Single and Regular premium
Contract.
No partial withdrawal of units will be allowed under this plan.
ix. Other Features:
i) Top-up (Additional Premium): The policyholder can pay additional
premium in multiples of Rs.1, 000 without any limit at anytime during the
term of the policy. In case of yearly, half-yearly or quarterly mode of premium
payment such Top-up can be paid only if all premiums have been paid under
the policy.
ii)Switching: You can switch between any fund types during the policy term
subject to switching charges, if any.
iii) Discontinuance of premiums and revival: If premiums are payable
yearly, half-yearly or quarterly and the same have not been duly paid within
the days of grace under the Policy, the Policy will lapse. A lapsed policy can
be revived during the period of two years from the due date of first unpaid
premium.
If you have opted for life cover, under Regular premium policies where at
least 3 years’ premiums have been paid, and the subsequent premiums are not
paid, the life cover and accident benefit cover, if any, will be compulsorily
available under the policy and the charges for the same if any, shall be taken,
in addition to other charges, by canceling an appropriate number of units out
of the Policyholder’s Unit Account every month subject to the following :
two years from the due date of first unpaid premium, or
two years from the due date of first unpaid premium, or
till such period that the Policyholder’s Unit Account reduces to one annualized
premium, whichever is earlier.
iv) Increase / decrease of benefits: No increase (except to the extent of Top-
up stated above) or decrease of benefits will be allowed under the plan.
iiv) Conversion to annuity at vesting date: The rate at which the amount at
vesting date will be converted to an annuity is not guaranteed and will be
based on the prevailing immediate annuity rates under the relevant annuity
option at the vesting date.
x. Reinstatement: A policy once surrendered cannot be reinstated.
xi. Risks borne by the Policyholder:
34

i) Unit Linked Life Insurance products are different from the traditional
insurance products and are subject to the risk factors.
ii) The premium paid in Unit Linked Life Insurance policies are subject to
investment risks associated with capital markets and the NAVs of the units
may go up or down based on the performance of fund and factors influencing
the capital market and the insured is responsible for his/her decisions.
iii) Life Insurance Corporation of India is only the name of the Insurance
Company and LIC’s Market Plus is only the name of the unit linked life
insurance contract and does not in any way indicate the quality of the contract,
its future prospects or returns.
iv) Please know the associated risks and the applicable charges, from your
Insurance agent or the Intermediary or policy document of the insurer.
v) The various funds offered under this contract are the names of the funds and do
not in any way indicate the quality of these plans, their future prospects and
returns.
vi) All benefits under the policy are also subject to the Tax Laws and other
financial enactments as they exist from time to time.
xii. Cooling off period: If you are not satisfied with the Terms and Conditions’ of
the policy, you may return the policy to us within 15 days.
xiii. Loan: No loan will be available under this plan.
xiv. Assignment: Assignment will not be allowed under this plan.
xv. Exclusions: In case the Life Assured commits suicide at any time, the
Corporation will not entertain any claim by virtue of the policy except to the
extent of the Fund Value of the units held in the Policyholder’s Unit Account
on death.
35

Benefit Illustration
Statutory warning
some benefits are guaranteed and some benefits are variable with returns based
on the future performance of your life insurance company. If your policy offers
guaranteed returns then these will be clearly marked guaranteed in the
illustration table on this page. If your policy offers variable returns then the
illustrations on this page will show two different rates of assumed investment
returns. These assumed rates of return are not guaranteed and they are not
upper or lower limits of what you might get back as the value of your policy is
dependant on a number of factors including future investment performance.
BASIC PLAN WITH LIFE COVER
FREQUENCY OF PREMIUM
PAYMENT
ANNUAL
PREMIUM
PREMIUM 10000
AGE AT ENTRY 35 years
SUM ASSURED UNDER
BASIC PLAN
200000
TERM 20 years
TYPE OF FUND
Secured
Fund
DEATH BENEFIT PAYABLE AT END OF YEAR OF
DEATH
SURRENDER/MATURITY
VALUE
END OF
POLICY
YEAR
TOTAL
PREMIUM
PAID
GUARANTEEDVARIABLEVARIABLETotal Total VARIABLE VARIABLE
Scenario 1 Scenario 2
Scenario
1
Scenario
2
Scenario
1
Scenario
2
1 10000 200000 7624 7932 207624 207932 0 0
2 20000 200000 17560 18569 217560 218569 0 0
36

3 30000 200000 27955 30121 227955 230121 27955 30121
4 40000 200000 38827 42664 238827 242664 38827 42664
5 50000 200000 50196 56282 250196 256282 50196 56282
6 60000 200000 62072 71057 262072 271057 62072 71057
7 70000 200000 74480 87091 274480 287091 74480 87091
8 80000 200000 87452 104503 287452 304503 87452 104503
9 90000 200000 101013 123411 301013 323411 101013 123411
10 100000 200000 115178 143935 315178 343935 115178 143935
11 110000 200000 129963 166205 329963 366205 129963 166205
12 120000 200000 145385 190361 345385 390361 145385 190361
13 130000 200000 161460 216558 361460 416558 161460 216558
14 140000 200000 178208 244962 378208 444962 178208 244962
15 150000 200000 195646 275756 395646 475756 195646 275756
16 160000 200000 213796 309138 413796 509138 213796 309138
17 170000 200000 232677 345323 432677 545323 232677 345323
18 180000 200000 252313 384547 452313 584547 252313 384547
19 190000 200000 272725 427066 472725 627066 272725 427066
20 200000 200000 293938 473158 493938 673158 293938 473158
BASIC PLAN WITHOUT LIFE COVER
FREQUENCY OF PREMIUM
PAYMENT
ANNUAL
PREMIUM
PREMIUM 100000
AGE AT ENTRY 35 years
SUM ASSURED UNDER
BASIC PLAN
0
TERM 20 years
ACCIDENT BENEFIT SUM
ASSURED
0
TYPE OF FUND
Secured
Fund
DEATH BENEFIT PAYABLE AT END OF YEAR OF
DEATH
SURRENDER/MATURITY
VALUE
END OF
POLICY
YEAR
TOTAL
PREMIUM
PAID
GUARANTEEDVARIABLEVARIABLETotal Total VARIABLE VARIABLE
Scenario 1 Scenario 2
Scenario
1
Scenario
2
Scenario
1
Scenario
2
1 100000 0 100743 104557 100743 104557 0 0
2 100000 0 102015 110022 102015 110022 0 0
3 100000 0 106813 119569 106813 119569 106813 119569
4 100000 0 111848 129965 111848 129965 111848 129965
5 100000 0 117132 141287 117132 141287 117132 141287
37

6 100000 0 122678 153617 122678 153617 122678 153617
7 100000 0 128498 167045 128498 167045 128498 167045
8 100000 0 134605 181669 134605 181669 134605 181669
9 100000 0 141015 197595 141015 197595 141015 197595
10 100000 0 147742 214940 147742 214940 147742 214940
11 100000 0 154801 233829 154801 233829 154801 233829
12 100000 0 162209 254400 162209 254400 162209 254400
13 100000 0 169984 276803 169984 276803 169984 276803
14 100000 0 178143 301201 178143 301201 178143 301201
15 100000 0 186705 327771 186705 327771 186705 327771
16 100000 0 195691 356708 195691 356708 195691 356708
17 100000 0 205121 388222 205121 388222 205121 388222
18 100000 0 215018 422541 215018 422541 215018 422541
19 100000 0 225404 459917 225404 459917 225404 459917
20 100000 0 236303 500622 236303 500622 236303 500622
i. This illustration is applicable to a non-smoker male/female standard (from
medical, life style and occupation point of view) life.
ii. The non-guaranteed benefits (1) and (2) in above illustration are calculated so
that they are consistent with the Projected Investment Rate of Return
assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively. In
other words, in preparing this benefit illustration, it is assumed that the
Projected Investment Rate of Return that LICI will be able to earn throughout
the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The
Projected Investment Rate of Return is not guaranteed
iii. The main objective of the illustration is that the client is able to appreciate the
features of the product and the flow of benefits in different circumstances with
some level of quantification
SECTION 41 OF INSURANCE ACT 1938
i. No person shall allow or offer to allow, either directly or indirectly, as an
inducement to any person to take out or renew or continue an insurance in
respect of any kind of risk relating to lives or property in India, any rebate of
the whole or part of the commission payable or any rebate of the premium
shown on the policy, nor shall any person taking out or renewing or
continuing a policy accept any rebate, except such rebate as may be allowed in
accordance with the published prospectuses or tables of the insurer: provided
that acceptance by an insurance agent of commission in connection with a
policy of life insurance taken out by himself on his own life shall not be
deemed to be acceptance of a rebate of premium within the meaning of this
sub-section if at the time of such acceptance the insurance agent satisfies the
38

prescribed conditions establishing that he is a bona fide insurance agent
employed by the insurer.
ii. Any person making default in complying with the provisions of this section
shall be punishable with fine which may extend to five hundred rupees.
ANNEXURE (TO BE ATTACHED WHERE LIFE COVER HAS BEEN
OPTED FOR)
Charge for Life Cover per Rs. 1000/- Sum Assured under Basic plan per annum
Age n.b.d Charge Age n.b.d Charge
18 1.15
19 1.20 51 7.27
20 1.25 52 8.05
21 1.29 53 8.90
22 1.33 54 9.80
23 1.36 55 10.76
24 1.39 56 11.79
25 1.42 57 12.87
26 1.43 58 13.78
27 1.45 59 14.94
28 1.46 60 16.34
29 1.46 61 17.99
30 1.46 62 19.88
31 1.46 63 22.01
32 1.50 64 24.39
33 1.56 65 27.02
34 1.64 66 28.40
35 1.73 67 32.02
36 1.85 68 36.03
37 1.99 69 40.47
39

38 2.15 70 45.37
39 2.33 71 50.78
40 2.57 72 56.74
41 2.81 73 63.30
42 3.02 74 70.51
43 3.25
44 3.54
45 3.89
46 4.30
47 4.77
48 5.30
49 5.90
50 6.56
PROFIT PLUS
Features
It is a unit linked Endowment plan where the premium payment term (PPT) is limited
to single lump sum, or uniformly over 3, 4 or 5 years. You can choose the level of
cover within the limits, which will depend on whether the policy is a Single premium or
Limited premium contract, term chosen and on the level of premium you agree to pay.
Four types of investment Funds are offered. Premiums paid after allocation charge will
purchase units of the Fund type chosen. The Unit Fund is subject to various charges and
value of units may increase or decrease, depending on the Net Asset Value (NAV).
Payment of Premiums:
You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (ECS)
intervals over the premium paying term of 3, 4 or 5 years. The minimum premium will
be Rs.10000/-. Alternatively, a Single premium can be paid subject to a minimum of
Rs.20, 000/- .
Other Features:
i) Partial Withdrawals: You may encash the units partially after the third policy
anniversary subject to the following:
40

i) In case of minors, partial withdrawals shall be allowed from the policy anniversary
coinciding with or next following the date on which the life assured attains majority
(i.e. on or after 18th birthday).
ii) Partial withdrawals may be in the form of fixed amount or in the form of fixed
numbers of units.
iii) For 2 years’ period from the date of withdrawal, the Sum Assured under the Basic
plan shall be reduced to the extent of the amount of partial withdrawals made.
iv) Under Limited Premium Paying Term policies where less than 3 years’ premiums
have been paid and further premiums are not paid, the partial withdrawals shall not be
allowed.
v) Under Limited Premium Paying Term policies where atleast 3 years’ premiums have
been paid, partial withdrawal will be allowed subject to Policyholder’s Fund Value
being at least Rs. 10000/-.
vi) Under Single Premium policies, the partial withdrawal will be allowed subject to a
minimum balance of Rs. 5000/- in the Policyholder’s Fund Value.
ii) Switching: You can switch between any fund types for the entire Fund Value during
the policy term subject to switching charges, if any.
iii) Discontinuance of premiums: If premiums are payable either yearly, half-yearly,
quarterly or monthly (ECS) and the same have not been duly paid within the days of
grace under the Policy, the Policy will lapse. A lapsed policy can be revived during the
period of two years from the due date of first unpaid premium.
I Where at least 3 years’ premiums have been paid, the Life Cover, Accident Benefit
and Critical Illness Benefit riders, if any, shall continue during the revival period.
During this period, the charges for Mortality, Accident Benefit and / or Critical Illness
Benefit cover, if any, shall be taken, in addition to other charges, by canceling an
appropriate number of units out of the Policyholder’s Fund Value every month. This
will continue to provide relevant risk covers for:
i. two years from the due date of first unpaid premium, or
ii. Till the date of maturity, or
iii. Till such period that the Policyholder’s Fund Value reduces to Rs. 5,000/-,
whichever is earlier.
The benefits payable under the policy in different contingencies during this period shall
be as under:
A. In case of Death: Higher of Sum Assured under the Basic Plan or the Policyholder’s
Fund Value. The Sum Assured shall be subject to provisions of Partial Withdrawals
made, if any.
41

B. In case of Death due to accident: Accident Benefit Sum Assured in addition to the
amount under ‘A’ above, if Accident Benefit is opted for.
C. In case of Critical Illness claim: Critical Illness Rider Sum Assured, if opted for.
D. On maturity: The Policyholder’s Fund Value.
E. In case of Surrender (including Compulsory Surrender): The Policyholder’s Fund
Value. The Surrender value, however, shall be paid only after the completion of 3
policy years.
F. In case of Partial Withdrawals: For 2 years period from the date of withdrawal, the
sum assured under the basic plan shall be reduced to the extent of the amount of partial
withdrawals made.
II Where the policy lapses without payment of at least 3 years’ premiums, the Life
Cover, Accident Benefit and/or Critical Illness Benefit rider covers, if any, shall cease
and no charges for these benefits shall be deducted. However, deduction of all the other
charges shall continue. The benefits under such a lapsed policy shall be payable as
under:
G. In case of Death: The Policyholder’s Fund Value.
H. In case of death due to accident: Only, the amount as under G above.
I. In case of Critical Illness claim: Nil.
J. In case of Surrender (including Compulsory Surrender): Policyholder’s Fund Value /
monetary value as the case may be, shall be payable after the completion of the third
policy anniversary. No amount shall be payable within 3 years from the date of
commencement of policy.
K. In case of Partial withdrawal: Partial Withdrawals shall not be allowed under such a
policy even after completion of 3 years period.
iv) Revival: If due premium is not paid within the days of grace, the policy lapses. A
lapsed policy can be revived during the period of two years from the due date of first
unpaid premium or before maturity, whichever is earlier. The period during which the
policy can be revived will be called “Period of revival” or “revival period”.
If premiums have not been paid for at least 3 full years, the policy may be revived
within two years from the due date of first unpaid premium. The revival shall be made
on submission of proof of continued insurability to the satisfaction of the Corporation
and the payment of all the arrears of premium without interest.
If at least 3 full years’ premiums have been paid and subsequent premiums are not paid,
the policy may be revived within two years from the due date of first unpaid premium
but before the date of maturity. No proof of continued insurability shall be required but
42

all arrears of premium without interest shall be required to be paid.
The Corporation reserves the right to accept the revival at its own terms or decline the
revival of a lapsed policy. The revival of a lapsed policy shall take effect only after the
same is approved by the Corporation and is specifically communicated in writing to the
Proposer / Life Assured.
Irrespective of what is stated above, if less than 3 years’ premiums have been paid and
the Policyholder’s Fund Value is not sufficient to recover the charges, the policy shall
be terminated and thereafter revival will not be entertained. If 3 years’ or more than 3
years’ premiums have been paid and the Policyholder’s Fund Value reduces to Rs.
5000/-, the policy shall terminate and Policyholder’s Fund Value as on such date shall
be refunded to the Life Assured and thereafter revival will not be allowed.
v) Settlement Option: When the policy comes for maturity, you may exercise
“Settlement Option” and may receive the policy money in instalments spread over a
period of not more than five years from the date of maturity. There shall not be any life
cover during this period. The value of installment payable on the date specified shall be
subject to investment risk i.e. the NAV may go up or down depending upon the
performance of the fund.
REINSTATEMENT:
A policy once surrendered can not be reinstated.
Risks borne by the Policyholder:
i) LIC’s Profit Plus is a Unit Linked Life Insurance products which is different from the
traditional insurance products and are subject to the risk factors.
ii) The premium paid in Unit Linked Life Insurance policies are subject to investment
risks associated with capital markets and the NAVs of the units may go up or down
based on the performance of fund and factors influencing the capital market and the
insured is responsible for his/her decisions.
iii) Life Insurance Corporation of India is only the name of the Insurance Company and
LIC’s Profit Plus is only the name of the unit linked life insurance contract and does not
in any way indicate the quality of the contract, its future prospects or returns.
iv) Please know the associated risks and the applicable charges, from your Insurance
agent or the Intermediary or policy document of the insurer.
v) The various funds offered under this contract are the names of the funds and do not
in any way indicate the quality of these plans, their future prospects and returns.
vi) All benefits under the policy are also subject to the Tax Laws and other financial
43

enactments as they exist from time to time.
Cooling off period:
If you are not satisfied with the “Terms and Conditions” of the policy, you may return
the policy to us within 15 days.
Assignment:
Assignment will be allowed under this plan.
Exclusions:
In case the Life Assured commits suicide at any time within one year, the Corporation
will not entertain any claim by virtue of the policy except to the extent of the Fund
Value of the units held in the Policyholder’s Fund Value on death.
SPECIAL 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!
BimaGold (closedforsale)
NewBimaGold
44

BimaNivesh2005
JeevanSaral
JeevanMadhur
45

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.
46

GROWTH OF PRIVATE LIFE INSURANCE COMPANIES IN THE LAST 5
YEARS
The insurance industry recorded a booming growth of 35% in premium income during
2004-05 with the 13 private sector players walking away with. An impressive 129%
while the Life Insurance Corporation of India recorded a 21% growth.
Thus the market share of state behemoths dropped to 78% in 2004 05 from 87% a
year ago.
According to ASSOCHAM Eco Pulse (AEP) Study, the industry premium increased
to Rs253.42bn in 2004-05 from Rs187.1bn in 2003-04. The LIC total premium for the
year 2004-05 amounted to Rs197.85bn as against the Rs162.84bn during previous
year.
The figures for the first two months of the fiscal 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%, while the private players have grabbed over 24% share.
"With the huge potential the market has, the Government should, more seriously look
into increasing the FDI cap in the sector" said Mahendra K. Sanghi, ASSOCHAM
President.
During April-June 2005, the largest private company ICICI Prudential has increased
its share from 6.25% in 2004-05 to 7.68% in current fiscal.
The opening up of the sector has given some of the most innovative products like the
47

customized insurance policies and now the unit linked policies that have gained much
of customer attention. The sector has huge potential and certain other new and
innovative areas can also be looked into for enhancing market share and premium
income, said Sanghi.
HDFC is next in the row with 2.91% market share which has increased from 1.92%
last fiscal followed by TATA AIG which now shares 2% of the market from 1.18%
last fiscal.
Birla Sun life's share has dropped from 2.45% during FY'05 to 1.76% in first two
months of FY'06. SBI life comes next with 1. 72% share and has infact dropped a few
percent points from last year.
Max New York life and Aviva Life Insurance have captured more than 1% share each
from less than 1% share during FY'05. Others like ING, AMP Sanmar, Met Life and
Sahara India have less than 1 % share.
The detail of the market share of life insurance companies is attached. The market
share of the private players has doubled every year from 5.6% in 2002-03 to, 12% in
2003-04 and close to 22% in 2004-05.
The state run insurance company has the biggest advantage of its huge network which
the company can use to penetrate into rural market that is still lying untapped.
Another option with the life insurance companies to capture more and more market
share could be product innovation and constantly developing an insurance product in
order to meet the ever-changing requirements of the customer. Quality customer
service and education can be another area where a company can differentiate itself
48

from other companies.
IT to boost life market growth?
THE LIFE Insurance Corporation of India (LIC) has turned to information technology
in a bid to shed its image as a dinosaur among more nimble private sector companies.
LIC, India's dominant life insurer, is encouraging policyholders to use its web site to
pay premiums and make claims. Last- month, it announced new mobile phone SMS
(testing) services to alert policyholders of news about their plans.
These moves, unmatched by most of LIC's smaller private sector rivals, are part of an
effort to open new channels to increase the speed and quality of customer service -
long seen as LIC's weakness after decades as India's monopoly life insurer. LIC's
performance in the year to March 2004 suggests that these efforts are working. It sold
27 million new policies generating Rs85.7 billion (US$1.9 billion) in premium
income - an annual growth of about 11 percent. LIC's deployment of information
technology may have helped it maintain its 88 percent market share of premium sales.
Yet few believe that technology alone will drive the company's - and in effect, the
Indian life industry's expansion.
"Ultimately the growth of life insurance depends on growth of the economy," said
TK. Banerjee, a board member of the Insurance Regulatory Development Authority.
India's economic growth rate in March 2004 hit double-digit figures to become Asia's
fastest-growing economy. Most economists forecast growth to stabilize at around 7
percent to 2005. Banerjee said that this climate of rising economic prosperity is
49

encouraging consumers to think more about insurance.
Nonetheless, most life companies believe consumers still need Sanmar: "People still
don't think that insurance is important. Most sales happen after personal interaction."
AMP Sanmar, a two-year old joint venture between south.-Indian based conglomerate
Sanmar and Australia's AMP, has employed some 3,000 sales agents w4o are
targeting small and medium-sized towns that have low penetration rates of life
insurance. India's life insurance penetration is less than three percent. "We're focused
on places where there is no other company - not even LIC," Subramaniam said,
-remarking that unlike LIC, AMP Sanmar regards the internet and mobile phones as
channels for promotion, not sales. He said that the internet is not widespread as a
channel to sell consumer products in India, but Subramaniam has not ruled out
deploying such technology in the future. Whatever the merits of new distribution
channels, the industry fears a decline in sales following new taxes levied on single
premium products. Single premium life insurance has been popular in India mainly
because guaranteed returns were tax-free. This encouraged policyholders to pay large
premiums with minimal risk cover, for payments at maturity that often exceeded the
returns of more sophisticated financial products such as mutual funds. But last
October, the government decided to tax premiums that paid above 20 percent of the
sum assured. The decision has reduced sales of single premium products, which is
likely to restrain the overall growth of India's life industry. The industry regulator has
forecast growth of life premiums to be around 20 percent to March -2004, about the
same level as 1999, down from a burst of sales in 2002 of 43.5 percent. India's life
insurers have rallied to persuade the government to rescind the ruling later this year,
but any decision must wait for the end of parliamentary elections currently underway.
50

CURRENT STANDING OF PRIVATE LIFE INSURANCE COMPANIES IN
URBAN SECTOR
Life insurance is possibly the most- retail of all financial services, and is required by
people of all segments and in all locations. At a broad level, ICICI Prudential aims to
secure the families of the middle and upper class working people in urban India. To
this end, they have pursued a pan-India distribution strategy and backed it up with a
range of products that meets the needs of a wide range of people, be they from rural or
urban areas. Today, they have branches in 74 locations and rural presence in more
than 15 states. Certainly, the majority of the business still comes from urban areas
such as metros and mini-metros. However, they have seen rural business grow
significantly and expect it to continue making greater contribution in the years to
come.
51

ROLE OF FOREIGN COMPANIES IN INDIA
Government has allowed 26% foreign equity participation in the insurance sector.
This has its limitations. While most foreign insurers planning to start their services in
India were not pleased by this condition, they reluctantly agreed that this was
expected in an opening economy and this will not change their outlook for India.
After all no insurance company can afford to ignore a market of 1bn people. But the
fact remains that they:
• Can not appoint majority directors on the company board;
• Can not have say in the day to day workings of the company;
• Can Affect Only Special Resolutions.
This cap, however, will have a great impact on the Indian counter part to raise 74% of
the funds in their joint venture. To add to this if Indian partners like State bank of
India, with over 9000 branches nationwide, will demand premium for their existing
distribution network, we will see the foreign insurance companies demand hefty
premiums for bringing in their global expertise and brand. Mr. Vaidya, Chairman of
SBI, has recently stated that all it is looking for is a good and reliable partner and the
question of a hefty premium to be charged to its foreign partner is not significant. The
monolith has finally come to business senses foreign companies are unhappy even
about laws pertaining to repatriation of funds. The Stipulated investment criteria is
also something that all players in the sector, be it Indian or foreign, are closing
watching.
The foreign players are essentially looking to tap their" global expertise in the variety
markets and use that know-how to work in the Indian scenario. Designing of products,
information systems, technical expertise, manpower planning etc is what one expects
the foreign players to have a say in.
52

Any venture of the joint kinds needs to be between equals. If this is not there then
there is every chance that a partner in the venture will feel increasingly uncomfortable
and would be looking to call the joint venture off.
53

FINDINGS
QUESTIONNAIRE ANALYSIS
Respondents = 80
Respondents Responded = 60
Response Rate = 75%
Respondents are taken from private, government and business sectors.
1. According to you, which have played a major role in the field of life-
insurance companies?
Insurance Pvt. Employees Govt. Employees Business Man
LIC 10 13 10
HDFC 5 3 5
ICICI 3 3 4
Others 2 1 1
0
2
4
6
8
10
12
14
LIC HDFC ICICI Others
No.
of
Respondents
Pvt. Employees
Govt. Employees
Business Man
After analyzing this data it is found that from the given three respective level of Pvt.
Govt. and Business 10 out of 20 (30%), 13 out of 20 (39%) and 10 out of 20 (30%)
are in favour of LIC, while 5 out of 20 (15%), 3 out of 20 (9%) and 5 out of 20 (6%),
1 out of 20 (30%) and 1 out of 20 (30%) are in favour of other Pvt. Companies.
54

2. Which insurance companies have been successful to make strong public
base by advertisement?
LIC 12 14 12
HDFC 3 2 4
ICICI 4 3 3
Others 1 1 1
0
2
4
6
8
10
12
14
16
No.
of
Respondents
Pvt. Employees
Govt. Employees
Business Man
55

3. Which insurance company has gained massive public support in the
current fiscal year?
LIC 12 14 10
HDFC 3 2 5
ICICI 3 2 4
Others 2 2 1
0
2
4
6
8
10
12
14
16
No.
of
Respondents
Pvt. Employees
Govt. Employees
Business Man
From the above table, it is found that from the given three sector Private, Govt. and
Business 12 out of 20 (36%), 14 out of 20 (42%), 10 out of 20 (30%), are in the
favour of LIC 3 out of 20 (9%), 2 out of 20 (6%) and 4 out of 20 (12%) are in favour
of ICICI, whereas only 2 out of 20 (6%), 2 out of 20 (6%) 1 and out of 20 (3%)
favour others company.
56

4. Do you think insurance policy is in the direction of public welfare?
Pvt. Sector Govt. Sector Business Man
Yes 13 16 12
No 7 4 8
0
2
4
6
8
10
12
14
16
18
No.
of
Respondents
Yes
No
The above table shows that from private sector 13 out of 20 (30%) agree and 7 out of
20 (21%) disagree, from govt. sector 16 out of 20 (48%) think it right but 4 out of 20
(12%) don’t thick it so and from business man 12 out of 20 (36%) are in favour of the
above statement but 8 out of 20 (24%) don’t favour it.
5. Is retirement bond or pension policy launched by the number of private
player as well as public sector Company in the direction of secured old
57

age?
Yes 15 18 13
No 5 2 7
0
2
4
6
8
10
12
14
16
18
20
No.
of
respondents
Yes
No
It is obvious from the above table that 15 out of 20 (45%), 18 out of 20 (54%) and 13
out of 20 (39%) from the given three think retirement bend or pension policy a
legitimate step in the direction of secure old age but 5 out 20 (15%), 2 out of 20 (6%)
and 7 out 20 (21%) don’t agree with the opinion of the majority class.
58

6. Do you think that risk coverage factor included in Insurance policy
attracts general public towards the policy?
Yes 12 16 11
No 8 4 9
0
2
4
6
8
10
12
14
16
18
No.
of
respondents
Yes
No
From the above table it is found that 12 out of 20 (36%) from Private sector 16 out of
20 (48%). From Govt. sector and 11 out of 20 (33%) thinks risk coverage factor
attractive but rest 8 out of 20 (24%), 4 out of 20 (12%) and 9 out 20 (27%) from the
above them sector don’t think it so encouraging towards saving trend whereas 3 out of
20 (9%), 2 out of 20 (6%) and 4 out of 20 (12%) don’t think it so.
59

7. What according to you, the term plan that only covers risk and doesn’t
cover maturity benefit on survival at the end of the term provides security
cover over policy holders or a smart way of accumulative money from
policy holders?
Security Cover 11 15 12
Accumulative Money 9 5 8
0
2
4
6
8
10
12
14
16
No.
of
Respondents
Security Cover
Accumulative Money
It is obvious from the above data that 11 out of 20 (33%), from the Pvt. Sector, 15 out
of 20 (45%) from Govt. sector and 12 out of 20 (36%) think term plan as a security
cover but 9 out of 20 (27%), 5 out of 20 (15%) and 8 out of 20 (24%) from the three
respective group think it as a way of accumulating money insurance company.
8. Do you think that the arrival of so many private companies in this
insurance sector envisage a lot of choice to policy holder?
60

Yes 16 18 16
No 4 2 4
0
2
4
6
8
10
12
14
16
18
20
No.
of
Respondents
Yes
No
From analyzing the above data it is found that 16 out of 20 (48%) from Pvt. Sector, 18
out of 20 (54%) from Govt. sector and 16 out of 20 (48%) think that the arrival of
private players envisage a lot of choice to policy holder. But 4 out of 20 (12%), 2 out
of 20 (6%) and 4 out of 20 (12%) don’t think it so.
61

9. Do you agree that customer-centricity and transparency are the
buzzwords for success in this evolving industry?
Yes 18 20 19
No 2 - 1
0
5
10
15
20
25
No.
of
Respondents
Yes
No
From this above data, it is found the 18 out of 20 (54%) from Pvt. Sector and 20 out
of 20 (60%) from Govt. Sector 19 out of 20 (57%) from Business men agree with this
statement whereas only 2 out of 20 (6%) from Pvt. Sector and 1 out of 20 (3%) from
Business men do not agree with this statement.
62

IMPORTANCE OF JOINT VENTURES
HDFC STANDARD LIFE INSURANCE COMPANY LIMITED
HDFC
Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged
as the largest residential mortgage finance institution in the country. The corporation
has had a series of share issues raising its capital to Rs. 119 crores. The net worth of
the corporation as on March 31, 2000 stood at Rs. 2,096 crores.
HDFC operates through 75 locations throughout the country with its Corporate
Headquarters in Mumbai, India. HDFC also has an international office in Dubai,
V.A.E., with service associates in Kuwait, Oman and Qatar.
Standard Life
Standard Life is Europe's largest mutual life assurance company. Standard Life, which
has been in the life insurance business for the past 175 years, is a modern company
surviving quite a few changes since selling its first policy in 1825. The company
expanded in the 19th century from its original Edinburgh premises, opening offices in
other towns and acquiring other similar businesses.
Standard Life currently has assets exceeding over £70 billion under its management
and has the distinction of being accorded "AAA" rating consequently for the past six
years by Standard & Poor.
63

The Joint Venture
HDFC Standard Life Insurance Company Limited was one of the first companies to
be granted license by the IRDA to operate in life insurance sector. Each of the JV
player is highly rated and been conferred with many awards. HDFC is rated 'AAA' by
both CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and
Standard and Poors. These reflect the efficiency with which DFC and Standard Life
manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.
HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000.
HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and Standard
Life has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.
HDFC Standard Life Insurance Products
• Money Back
• Endowment
• Term Assurance Plan
• Flexible Bond
• Development Insurance Plan
64

ICICI PRUDENTIAL LIFE INSURANCE COMPANY
ICICI
ICICI Ltd. was established in 1955 by the World Bank, the Government of India and
the Indian Industry, to promote industrial development of India by providing project
and corporate finance to Indian industry.
Since inception, ICICI has grown from a development bank to a financial
conglomerate and has become one of the largest public financial institutions in India.
ICICI has thus far financed all the major sectors of the economy, covering 6,848
companies and 16,851 projects. As of March 31, 2000, ICICI had disbursed a total of
Rs. 1,13,070 crores, since inception.
Prudential plc.
Prudential policy was founded in 1848. Since then it has grown to become one of the
largest providers of a wide range of savings products for the individual including life
insurance, pensions, annuities, unit trusts and personal banking. It has a presence in
over 15 countries, and caters to the financial needs of over 10 million customers. It
manages assets of over US$ 259 billion (Rupees 11, 39,600 crores approx.) as of
December 31, 1999.
Prudential is the largest life insurance company in the United Kingdom (Source:
S&P's UK Life Financial Digest, 1998). Asia has always been an important region for
Prudential and it has had a presence in Asia for over 75 years. In fact Credential’s first
overseas operation was in India, way back in 1923 to establish Life and General
Branch agencies.
65

The Joint Venture
ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000.
The authorized capital of the company is Rs.2300 Million and the paid up capital is
Rs. 1500 Million. The Company is a joint venture of ICICI (74%) and Prudential plc
UK (26%). The Company was granted Certificate of Registration for carrying out Life
Insurance business, by the Insurance Regulatory and
Development Authority on November 24, 2000. It commenced commercial operations
on December 19, 2000, becoming one of the first few private sector players to enter
the liberalized are
ICICI Pru Life Insurance Products
• ICICI Pru Forever Life
• ICICI Pru Single Premium Bond
• ICICI Save 'n' Protect
• ICICI Pru CashBack
• ICICI Pru Life Guard
• ICICI Pru Assure Investment
• ICICI Pru Life Link
• ICICI Pru Reassure
66

BIRLA SUN LIFE INSURANCE COMPANY LIMITED
The Aditya Birla Group
Aditya Birla Group is India's second largest, business house, with a turnover of over
$4.75bn and an asset base of$3.8 bn. The Group is a well diversified conglomerate
with 72,000 strong workforce spanning 40 Companies spread across 17 countries.
The flagship companies of the Group - Grasim, Hindalco, Indian Rayon and Indo
Gulf - hold leadership positions in their respective areas of business.
Sun Life Assurance
Sun Life Assurance Co. of Canada, established in 1871, is licensed in Canada, the
U.S., the Philippines, Hong Kong, and the U.K. Its major lines of business are life
insurance, annuities and mutual funds and investment services. Sun Life's rating
reflects extremely strong diversification of revenues and profitability, outstanding
capitalization, good fundamental earnings, and high-quality investments. In Canada,
the company is especially strong. in the corporate life and health insurance and
savings markets. In the U.S., the company is a top 20 player in the variable annuity
market and a significant force in the upscale individual insurance market. In the U.K.,
Sun Life is among top 20 life and health insurers.
67

The Joint Venture
Birla Sun Life Insurance Company, the 74: 26 joint ventures between Aditya Birla
Group and Sun Life financial Services --of Canada, has an equity capital of Rs. 150
crore. Birla Sun Life has Mr. Nalli B Javeri as its CEO.
A six member Board, with equal representation from each of the JV Companies has
been constituted to run the Company. Mr. Donald A. Stewart, Chairman and CEO,
Sun Life Financial Services will head the Board. Mr. Kumar Mangalam Birla will be
a director on the board. Other directors include Mr. Douglas Henck, Executive Vice
President of Sun Life's Asian operations, Mr. Vijay Singh, Vice President India, Sun
Life Financial Services, Mr. B. N. Puranmalka, Group Vice-Chairman, and Mr. S. K.
Mitra, Group Director, Financial Services of the Aditya Birla Group.
The area of focus will be the rural segment as the company plans to leverage the
network of the Aditya Birla Centre for Community Initiative and Rural Development
in rural areas. Its multi-channel distribution set up comprises insurance advisors for
life and an expert marketing team for group products.
Birla Sun Life Insurance Products
• Money Back
• Endowment
• Whole Life
• Birla Sun Life Term Plant
68

CONCLUSION
After overhauling the all situation that boosted a number of Pvt. Companies
associated with multinational in the Insurance Sector to give befitting competition to
the established behemoth LIC in public sector, we come at the conclusion that :
1) There is very tough competition among the private insurance companies
on the level of new trend of advertising to lull a major part of Customers.
2) LIC is not left behind in the present race of advertisement.
3) The entry of the Pvt. Players in the Insurance Sector has expanded the
product segment to meet the different level of the requirement of the
customers. It has brought about greater choice to the customers.
4) Private insurers have restricted reach to the customers.
5) LIC has vast market and very firm grip on its traditional customers and
monopoly of life insurance products.
6) Bank assurance - that allows life insurers to leverage on the risk product
through bank network, was adopted by private players. But LIC was also
not left behind as picking up majority stake in the corporation Bank and
large equity stake in the Oriental Bank of Commerce.
IRDA is also playing very comprehensive role by regulating norms mandating to
private players in this sector, that increases the confidence level of the customers to
the private players.
69

CONCLUSIONS GOT BY THE CONSUMER SURVEY ANALYSIS
1) Now days also Insurance is most popular as more plain protection against
death and people are unaware about the other aspects of insurance.
2) According to current scenario life and mater Insurance are the mast
popular ones followed by fire Insurance.
3) Majority of people consider the Insurance premium paid by them as
reasonable.
4) Only few counted people are unaware about the entry of private players
into. The insurance industry and a very high majority of people support
their entry.
5) By the entry of private players. Consumers are expecting the premium to
down which would be the biggest blessing.
70

RECOMMENDATIONS
In the modernized well advanced hi-tech approach to the customer every possible
facilities and effort to build up the confidence of the rising policy holders towards.
Insurance companies, to complete one another nothing is left to recommend. But
some recommendations that are intensely felt and highly required for insures to
sustain in the market. These are as follows:
a) More and more transparency should be ascertained between insurers and
policy holders.
b) Particularly, in the emerging boom in the insurance company, every insurance
company should be customer centered, and well versed in the handling of
problem and grievances of the policy holders.
c) Each and Every product launched by the Insurance company should be in
favour of increasing need of policy holders.
IRDA should be more and more responsible to the insurance sector by determining
some standard. It should be mandatory to every insurers to make more and more
responsible and responsive to the policy holders so that comprehensive understanding
may be developed among policy holders. It may be beneficial on both sides.
71

BIBLIOGRAPHY
BROCHURES / INFORMATION BOOKLETS
• Product List L.I.C.
• L.I.C. Annual Report, 2006
• ICICI Annual Report, 2006
• HDFC Annual Report, 2006
• Malhotra Committee Report on Reforms in the Insurance Sector, 1993.
• The Insurance Regulatory and Development Authority Bill, 1999.
•
NEWSPAPERS / MAGAZINES
• The Economic Times
• The Insurance Times
• Insurance Post
• BOOKS
• Dr. Gupta S.P& Dr. Gupta M.P., Business Statistics by Addition 2004, New
Delhi,
WEBSITES
• w.w.w.liclndia.com
• www.lrdaindia.org.com
• www.indiainfoline.com
• www.icici.com
• www.hdfc.com
72

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