INDEX

Part-I
About LIC of India
1.

Brief History of Life Insurance in India

2.

Objective, Vision and Mission of LIC of India

3.

Profile of LIC of India as on 31.03.2014

4.

Grievance Redressal Policy of LIC of India

Part-II
Principles and Practice of Life Insurance
1.

What is Life Insurance

2.

Principles of Life Insurance

Life Insurance Contract

Principles of Utmost Good Faith

Insurable Interest

Principles of Indemnity

Different Risks

Needs & Insurance

3.

Basic elements in Life Insurance Premium

4.

How Surplus is Generated

5.

Vesting and Distribution of Bonuses.

6.

Solvency margin and its impact on bonus rates

7.

Role of an Agent

8.

Code of conduct for agents

9.

IRDA policyholders protection act 2002

Continued

Part-III
Selling Process
1.

The Common Denominator of Success

2.

5 Basic Requirements for Success

3.

Need Based Selling Steps

4.

Prospecting

5.

20 Point Activity System

6.

Concepts of Life Insurance

Family Protection

An Aid to Thrift

Easier Terms

Estate Creation

An Investment

A Device for Business Finance

A Complete Financial Programme

A Way of Life

7.

Human Life Value

8.

Capital Need Analysis

Part-IV
Underwriting Aspects
1.

Selection and Classification and

of Risk (Underwriting)

2.

Age Proofs

3.

Sum Under Consideration (SUC)

4.

Non Medical Rules

5.

Non Medical Rules under Single Premium and

Bima Bachat

Continued

6.

Medical Examination Rules including TPA

7.

Special Medical Reports Rules

8.

Validity of Medical Reports

9.

Minimum waiting period for Certain Ailments.

10.

Personal History of Certain Diseases

11.

Insurance on Female Lives

12.

Insurance on Minor Lives

13.

Insurance on Lives of Major Students

14.

Insurance on Physically Handicapped Lives

15.

Insurance on NRI Lives

16.

Residence Groups and ratings for NRIs

17.

Occupational Ratings

18.

Financial Underwriting

19.

Summary of Financial Underwriting

20.

Example of Financial Underwriting

Part-V
Basic Insurance Contracts and Riders
1.

Basic Insurance Contracts

2.

Accident & Disability Benefit Rider

Continued

Part-VI
Individual Insurance Plans
Plan No.

822.

Name of Plan

TERM INSURANCE PLANS

Anmol Jeevan - II

823.

Amulya Jeevan- II

825.

e-Term
Comparison 823 v/s 825

814.
815.

ENDOWMENT TYPE PLANS

New Endowment Plan
New Jeevan Anand
Paid and SV under 815.

827.

820.
821.

818.

Jeevan Rakshak

MONEY BACK PLANS

New Money Back Plan 20 years
New Money Back Plan- 25 years

PENSION PLANS
New Jeevan Nidhi

189.

New Jeevan Akshay VI

828.

Varishtha Pension Bima Yojana

816.

SINGLE PREMIUM PLANS

New Bima Bachat

817.

Single Premium Endowment Plan

826.

Jeevan Shagun
Continued

904

HEALTH INSURANCE PLAN

Jeevan Arogya

Part-VII
Business Insurance
1.

Key Man Insurance

2.

Partnership Insurance

3.

Employer Employee Insurance

4.

Employee Retention Scheme

5.

Salary Saving Scheme

Part-VIII
Group Insurance
1.

New Group Gratuity cash accumulation plan

2.

New Group Superannuation cash accumulation plan

3.

New Group Leave Encashment plan

4.

New One Year Renewable Group Term Assurance

Plan- I

5.

New One Year Renewable Group Term Assurance

Plan- II

6.

Social Security Scheme : Aam Admi Bima Yojana

Continued

Part-IX
Financial Tables
1.

Future Value of Single Payment (Compound Interest)

2.

Future Value of Annual Payment (Sinking Fund)

3.

Present Value of Annual Payments (Discounting

Factors)

4.

Effective interest rate

Part-X
Appendix
1.

Non- Medical Charts

2.

Special Medical Reports Chart

3.

Bonus Rates as on 31.03.2014

4.

Bonus rates with FAB as on 31.03.2014

5.

MHR Limits

6.

KYC Norms

7.

Rate of interest for FY 2014-15

8.

Settlement Options

9.

Back Dating Rules

10.

Tax Laws and Life Insurance (A.Y. 2015 16)

11.

Attachment of Policy

12.

MWP Act Policies

13.

HUF Policies

14.

Check List before submitting proposal form

15.

Commission rates

16.

Results of LIC 2013-14

17.

P/L and Death Claim analysis 2012-13

PLAN 814 New Endowment Plan

(1)

Details & Benefits

(2)

Examples

(3)

Features & Conditions

(4)

Underwriting Rules

UIN No: 512N277V01

PLAN 814
LICs NEW ENDOWMENT PLAN
(Cir: PD/43 Dtd 02/01/2014, U&R/94 Dtd 02/01/2014, Launch Date:
03/01/2014)

DETAILS:
This is a regular premium, non-linked, with profits
Endowment Plan.
DEATH BENEFIT:
Sum Assured on Death + Vested Bonus + FAB if any.
Sum Assured on Death= Higher of Basic SA or 10 times of
annualized Premium.
Death Benefit shall not be less than 105% of total
premiums paid as on date of death. The premiums exclude
taxes, extra premium and rider premiums.
MATURITY BENEFIT:
Basic Sum Assured + Vested Bonus + FAB if any.

Example*: (PLAN 814)

Age- 35, S.A.- `5,00,000, Term - 21 years, Basic Yly

Premium: ` 22877

*Bonus and FAB rates given under example are for illustration purpose only.
Client Specific Benefit illustration @4% & 8% gross investment return must
be provided to Prospect.

Features & Conditions: (PLAN 814)

Minimum age at entry : 8 years lbd
Maximum age at entry : 55 years nbd
Max. age at maturity : 75 years nbd
Minimum term
: 12 years
Maximum term
: 35 years
Minimum S.A.
: `1,00,000/- & in multiples of ` 5,000
thereafter.
Maximum S.A.
: No limit
Available Riders:
Accident & Permanent Disability Benefit
Mode of Payment:
Yearly, Half Yly, Qly & Mly ( SSS & ECS)
Rebates:
Mode Rebate
Yearly : 2%,

Half Yly : 1 %

High Basic S.A. Rebate

Upto 1,95,000
: Nil
2,00,000 to 4,95,000 : ` 2 %o Basic SA
5,00,000/- & above
: ` 3 %o Basic SA
Policy Loan: Available after payment of premium of 3 full years.
Revivals: Within 2 years of FUP.
Back Dating:
Allowed with lean Months benefits.
Proposal Form: 300, 340 or 360.
Service Tax:
st
1 Year of Policy : 3.09%
nd
2 Year onwards : 1.545%
Tax Benefits :
On Basic Premiums
Maturity/Death claim

: u/s 80C
: u/s 10(10D)

Underwriting Rules: (PLAN 814)

Non -Medical Schemes:
All Allowed.
Non-Standard Age Proofs:
All Allowed.
Female Lives :
All Allowed.
Pregnant ladies: Cat I & II only up to 24 weeks of pregnancy.
Minor lives/Major Students:
Max rated up S.A. inclusive of all plans `1crore & Standard Minor lives
only.
S.A. beyond `1crore/substandard minor lives at CUS only with MMs
recommendation.
Sub-Standard Major lives:
Up to EMR Class Ten only.
Physically Handicapped lives should be gainfully employed.
Occupation/Residence Extra:
Standard extra is to be charged.
Actual Sum Assured (ASA) for SUC:
For FMR, Special Reports, MHR & TRSA: Basic S.A. only.
Keyman/Partnership/Empl-Employee:
Allowed only under Employer-Employee
NRIs & FNIOs Residence Group:
Group I & II: Not Allowed.
Group III to VI: Allowed with extra.
Group VII: Allowed without extra.
Juvenile lives, House wives and NMS Scheme: Group V, VI and VII only.
Mail Order: Only NRIs of Group III to VII.

SPECIAL MEDICAL REPORT CHART

Applicable to proposals under medical category for all plans
(Cir: U&R/4/2008 dt. 15/01/2008)
Sum
Under
Consideration

Age at Entry (Last Birthday)

Upto 35
years

36 to 45 years

46 to 55 years

56 & above

Nil

Nil

Nil

Rest ECG, FBS

(Rs.150/-)

Nil

Rest ECG ,FBS

(Rs.150/-)

Nil

Nil

Rest ECG, FBS,

Lipidogram, RUA,
Hb%
( Rs.380/-)

10,00,001 to
15,00,000

Nil

Lipidogarm,
FBS, RUA ,
Elisa for HIV,
Hb%
(Rs.520/-)

Rest ECG,
SBT-13, RUA,
Hb%
(Rs. 1,170/-)

15,00,001 to
35,00,000

Lipidogarm,
FBS, Elisa
for HIV, Hb%
(Rs. 490/-)

Rest ECG,
SBT-13, RUA,
Hb%
( Rs. 1,170/-)

Rest ECG,
Haemogram,
SBT-13, RUA,
CTMT,
(Rs. 2,020/-)

35,00,001 to
50,00,000

Rest ECG,
SBT-13,
RUA,
Hb%
( Rs. 1,170/-)

Rest ECG,
Haemogram,
SBT-13, RUA,
CTMT,
(Rs. 2,020/-)

Rest ECG,
Haemogram,
SBT-13, RUA,
CTMT, HbAlc
(Rs. 2,270/-)

Rest ECG,
Haemogram,
SBT-13, RUA,
CTMT, HbAlc,
Chest X-Ray
(Rs. 2,370/-)

50,00,001 and
Above

Rest ECG,
Haemogram,
SBT-13,
RUA.
(Rs. 1,220/-)

Rest ECG,
Haemogram,
SBT-13, RUA,
CTMT, HbAlc
(Rs. 2,270/-)

Rest ECG,
Haemogram,
SBT-13, RUA,
CTMT, HbAlc,
Chest X-Ray
(Rs. 2,370/-)

Rest ECG,
Haemogram,
SBT-13, RUA,
CTMT, HbAlc,
Chest X-Ray
(Rs. 2,370/-)

Upto 2,00,000
2,00,001 to
5,00,000

5,00,001 to
10,00,000

Nil

Rest ECG, FBS,

Lipidogram, RUA,
Hb%
( Rs. 380/-)
Rest ECG, FBS,
Lipidogram, RUA,
Hb%
( Rs.380/-)
Rest ECG,
Haemogram,
SBT-13, CTMT,
RUA,
(Rs. 2,020/-)
Rest ECG,
Haemogram,
SBT-13, RUA,
CTMT, HbAlc
(Rs. 2,270/-)

Notes:
1.
For Critical Illness Rider:
Age 36 and above, ECG, Hb% & FBS are compulsory for any SA
2. For Revivals age 56 and above: Special Reports are not required
for sum to be revived upto` 50,000/-.

Results of LIC 2013-14

Profit & Loss and Death Claim Analysis

of All Life Insurers for the Year 2012-13

Source: IRDA's Annual Report 2012-2013, Available at www.irda.gov.in

* In case of LIC of India Surplus generated is not carried

forward. Out of total surplus generated for the year 95%
(`27291.22 crores) is distributed among the policyholders
and balance 5% (`1436.38 crores) is Govt of India share.

Notes:
1. Out of 23 Private Companies 17 companies are
still showing total carried forward losses, some
are in operation now for more than 12 years.
2. Higher amount of claims are being rejected by
the private companies as compared with LIC of
India.
3. During the year 2012-13 Claim settlement
performance of Private Companies has
reduced as compared with last year.
4. The outstanding claims of private companies
are also on higher side; this shows delay in
settlement of claims by private companies.