Expression of Interest

Life Insurance Corporation of India Direct Marketing Deptt.,Central Office, Yogakshema, Jeevan Bima Marg, Mumbai 400 021 INVITATION FOR EXPRESSION OF INTEREST (EOI) (ONLINE SALE OF POLICIES, FINANCIAL PLANNING SOFTWARE & MOBILE APPLICATIONS) Expression of Interest is invited from eligible firms who can undertake development of interface and integration for selling LIC policies online, developing Financial Planning Software (including financial need analysis, LIC plans presentation, financial planning and Advisors desktop), and Mobile Applications for various LIC services in sales process. Eligible firms having experience in providing above solutions on the lines of global best practices combined with deep understanding of ground realities in Indian context and well versed with life insurance concept particularly in India are invited to submit nonbinding Expression of Interest (EOI) not later than 4.00 p.m. on 22nd August, 2011. Further details can be accessed at www.licindia.in/tender_notice.htm.

Executive Director (Direct Mktg.)

__________________________________________________________________________________

Expression of Interest
1. Introduction Life Insurance Corporation of India, established under LIC Act, 1956, hereinafter referred to as LIC or Corporation, is the largest insurer in India, servicing more than 238 million inforce policies through 8 Zonal Offices, 118 Divisional Offices, 2048 Branch Offices and over 1000 Satellite Branch Offices. The Corporation sold more than 37 million new policies last year. The Corporation has about 50 life insurance products to cater to insurance needs. It also has a strong workforce of more than 1 Lac employees & over 1.4 million Agents. All the branches and units are computerized and connected with other offices of the Corporation through a Wide Area Network. The Corporation has provision for premium calculator, premium payment gateway and online underwriting (limited) already available on its website www.licindia.in. Corporation has also developed a portal for customers and agents. Details of existing IT infrastructure: Portal Infrastructure Application Server: Oracle Weblogic 10.3.2 (11g R2) Operating System: Red Hat Linux AS 5.4 Database: Oracle Enterprise Edition 10g with RAC Application: J2EE platform Integration dependencies with: TIBCO RV (middleware) MSExchange 2007 (email server) SMS Gateway (CellNext) Underwriting Rule Engine (JBOSS BRMS) eFEAP customized webbased insurance package (GlassFish, MicroFocus COBOL, RHEL5.4, MySQL) Document Management System (Newgen, Omni Docs/Omniflow,RHEL, PostgreSQL) Data WareHouse (Terradata, Business Objects, MicroStrategy)

2. Objectives Corporation has taken a decision to go for Online sale of policies with or without the support of intermediaries. Further, the Corporation intends to provide to its Branch officials, agents, DSEs and DSAs or any other marketing intermediary as decided by the Corporation, marketing tools like product presentations, premium quotations, customized product mix, cash flow statements, product comparisons, insurance need analyzer, advisor, proposal data entry and data transfer for their sales activities. Corporation has also decided to devise mobile applications for the use of intermediaries and prospective customers to help them in sales process. As such, the solution will have three parts as follows.

2.1 An EndtoEnd Interface to the prospective clients for online sale of policies. The customer should be able to provide his details to the corporation through internet, browse through various plans available to him, compare the rates of
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other companies similar products, their benefit illustration & other features, make premium calculations & online payment and upload the documents required especially for fulfilling underwriting requirements, KYC and AML norms. The interface is to be integrated in the backend with premium calculator, underwriting engine and payment gateways of the corporation. 2.2 Financial Planning Software so that the customer is presented with uniform, standardized & personalized product quotations and benefit illustrations that conform to the policies of the Corporation and to the standards set by the Regulator. The software should be creative and easy to navigate. 2.3 Mobile Applications for various uses like premium calculation, income tax calculation, insurance needs calculation and human life value calculation, maturity/death benefit calculation, Bonus calculation, IRR & NPV calculation, etc. 3. Scope of Work The details of Scope of work would are as under: 3.1 Online sale of policies (endtoend interface for buying policies online) Customer logs in and browses for various plan options available. The system provides product features, USPs and benefits of each solution, calculates premium and customer decides to buy online. He should be able to fill the proposal form and make payment online. Underwriting decision would be conveyed on line and copy policy/ policy bond should be delivered on line. 3.1.1. Interface design o User interface for data entry of new proposal information should be preferably flash driven with minimum trips to server/database, with appropriate validations, selfhelp popups/alerts and context based help menus. o User interface should be designed to handle all types of plans, and all types of proposal forms. Any additions/deletions of the user interface should be possible without major change in output data formats and database designs. o Existing iproposal forms (pdf) may be integrated with this module. o Output of the interface should preferably be XML data, and print facility should be able to generate a pdf document similar to LICs hardcopy of NB proposal. 3.1.2. Content repository for related documents getting uploaded and integration with Document Management System of LIC 3.1.3. Underwriting support through integration with underwriting engine of LIC 3.1.4. FAQs: Response to general questions and queries about LIC 3.1.5. Doctor locator: The list of doctors and diagnostic centers on LIC panel and their contact address/contact nos. gets displayed based on PIN code or customer location 3.1.6. Proposal data entry, uploading of document images. 3.1.7. Online validation of data 3.1.8. Linkage with Payment Gateway 3.1.9. Integration with backend systems of the corporation. The module needs to be integrated with Underwriting rule engine, eFEAP package, Payment

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gateway, document management system, email (exchange server), gateway. 3.1.10.Link with call centers for online help 3.2 Financial Planning Software & Advisors Desktop: Financial Planning Software:

SMS

3.2.1 Information on LIC: Mission, vision, objectives, business performance, background information, achievements, and history of LIC, press releases, newsroom having updates of the news release on LIC and insurance industry and provision for regular updation. 3.2.2 Financial Need Analysis on the basis of financial goals. 3.2.3 Suggestions & Features of appropriate plans. 3.2.4 Plan presentation individually and combination of many plans with Cash flow statement Benefit illustration Premium quotations Historic behavior of NAVs of ULIP plans Customized letters to the customer 3.2.5 Comparison of plans of LIC and other life insurers 3.2.6 Whatifanalysis of benefits based on historic performance of NAVs/Bonuses 3.2.7 Risk appetite assessment of customers through analysis of present portfolio segments not covered in the portfolio behaviour analysis 3.2.8 Financial Advice based on financial need analysis and financial goals. 3.2.9 Content repository for product presentations, premium quotations, customized product mix, cash flow statements, product comparisons, insurance need analysis etc to facilitate DSEs/Agents upload/download data to/from the Portal. The facility is to be loginbased. Advisors Desktop: 3.2.10 3.2.11 3.2.12 3.2.13 3.2.14 3.2.15 3.2.16 Customizable correspondence templates Appointment diary Policy based information systems and registers Premium management tool Performance monitoring tool & New Business planner Customer Management tool Reminder and lists for Survival Benefits/Maturity due Birthdays Anniversary Policy Servicing Manual with all forms available online Feedback mechanism Claim support Email/SMS campaigns Emagazine for customers

3.2.17 3.2.18 3.2.19 3.2.20 3.2.21

3.3 Mobile applications for 3.3.1 premium calculation 3.3.2 financial need analysis 3.3.3 income tax calculation
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3.3.4 3.3.5 3.3.6 3.3.7 3.3.8 3.3.9

interest calculation on delayed payment of premium loan calculation Revival amount calculation Maturity/Death Benefit calculation Bonus, IRR, NPV calculation Additional issues: o The application should be capable of running on the lowest end mobile sets. o User friendliness and ease of handling the mobile application, and display of concise, relevant information. o Content rendering according to mobile screen resolution of the users. o Support for all platforms o User identification, authentication and authorization o Security of data transferred between mobile handsets and LIC servers o Data encryption & compression, data size and session handling.

3.4 Other issues: 3.4.1 The financial planning software should be available on all modes i.e. webbased as well as standalone offline through CDs. It should be capable of running on lowest end PCs/laptops. 3.4.2 The EOI should contain separate working for each project area. 3.4.3 The software/applications should be scalable to be provided to the entire marketing intermediary workforce of the corporation. 3.4.4 The software/applications should be able to provide full functionality at high scalability. 3.4.5 The software/applications should have adequate scope of customization as and when required. 3.4.6 Provision to be made for maintenance of the software/applications. 3.4.7 The user interface as well as the back end code being developed under the scope of work should be in such a way that it can be seamlessly integrated with the Enterprise Portal Solution and that the functionalities can be served through portal with minimum efforts (including the users who will be accessing the portal through mobile/handheld devices). The User Interface should support multiple languages and accessibility guidelines issued by Govt. of India vide WCAG 2.0. 3.4.8 The proposed system has to be based on Component Model (component for computation, reporting, interface etc.) for interoperability of the system 3.4.9 LIC requires that all Intellectual Property Rights (IPR), source codes, executables, design documents, user guides, etc. of the proposed software solutions should be transferred in favour of LIC and LIC only will have the rights to use these in future. 4. Eligibility Criteria 4.1 The applicant should be a professional firm having: A minimum of 3 years of experience in the relevant project areas, implemented and completed at least one part of the solution in India or abroad. Prior experience in handling a similar engagement for renowned insurance company will be preferable. A fullfledged office in Mumbai

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Minimum average turnover of Rs. 5 Cr over last 3 financial years (200809, 200910, 201011) from development of software/applications Firm should have been profitmaking during last three financial years Adequate number (minimum two) of qualified personnel with experience and expertise (including experts) from the relevant field 4.2 LIC requires that the vendor provides professional and objective services and at all times, hold the LICs interest paramount, strictly avoiding conflicts with other assignments / jobs or their own corporate interest and act without consideration for future work. 4.3 A firm has to submit EOI for all the projects mentioned under clause 3, however, principal vendor can bring in suitable partner who is expert in niche area. 5. Shortlisting of Vendors for the purpose of RFP 5.1 The documents submitted by the applicants in connection with EOI will be scrutinized by an Evaluation Committee formed by LIC. The committee will prepare a shortlist of vendors, based on their relative experience, expertise & other parameters mentioned in the eligibility criteria. LIC reserves the right to reject any or all proposals without assigning any reason. 5.2 The shortlisted vendors would be required to make presentation on their proposed solution. 5.3 The shortlisted Vendors shall be sent an invitation to submit their technical and commercial bids as per RFP document to be prepared by LIC in the post EOI stage. However, LIC reserves the right to make open the RFP process to the vendors who have not responded to the EOI, if deemed necessary. 6. Vendors have an obligation to disclose any situation of actual or potential conflict that impacts their capacity to serve the best interest of LIC, or that may reasonably be perceived as having this effect. Any such disclosure shall be made as per the Standard forms of technical proposal provided herewith. 7. Documents to be submitted by the Applicants for EOI The following documents are to be submitted in response to the EOI (formats to be used wherever provided). 7.1 Application form as per Format I. 7.2 Information showing that the interested vendor is qualified in the field of projects mentioned hereinabove (Brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff etc.). Submit documentary evidence of successful completion of similar projects, in the Indian as well as the global context, in the insurance sector. The document should bring out (a) the nature of the project; (b) deliverables; (c) cost of the project; (d) the client for whom the project was undertaken; (e) duration of the project. Information to be provided as per Format II. 7.3 Interested Vendors should provide information on the qualification and profiles of key personnel; clearly demonstrating their ability to implement the above mentioned activities through Format III.
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7.4 Disclosure on Conflict of Interest (Format IV). 7.5 Information on the financials indicating financial strength of the interested vendor. Certified copies of audited revenue accounts showing income from software development as well as Balance Sheets for the last three financial years (Format V). 7.6 EOI submission check list (Format VI) to be submitted duly filled in. Page numbers to be indicated against each item of the checklist and the enclosures of the proposal that cover the desired requirement. 7.7 Vendors should provide information on the technical and managerial capabilities of the firm. 7.8 Vendors should provide information on their core business and years in business. 7.9 List of litigation pending by / against the firm along with brief details, if any. 7.10 List of offices of the vendor in India.

8. Instructions to bidders for Formulation & Submission of EOI 8.1The documents related to the EOI are to be put in a sealed envelope superscribed SALES PROCESS AUTOMATION. 8.2 Proposals received after the date and time mentioned at Para 8.5 below will be rejected. 8.3 Any queries / clarification are welcome that firms may have beyond the information provided in this document. Queries may be communicated only through email to online_dm@licindia.com. Response to query will be posted on LIC website under tenders. No queries will be accepted on telephone or through any means other than email. The queries should be addressed to Secretary (Direct Marketing), Central Office, Mumbai. Only those queries will be accepted that are received by us up to 3.00 PM on Wednesday, the 17th August 2011. Our responses to the queries received will be posted on our website in one or more batches, the last of which will be uploaded by 3.00 pm on Thursday, the 18th August, 2011. All prospective respondents should visit our website regularly to gather our responses to the queries. 8.4 Please note that all the pages of the EOI document should be signed with date and seal of the organization should be put near the signature of the authorized signatory on all pages. 8.5 The last date of submission is Monday, the 22nd August, 2011 by 4.00 p.m. 8.6 The EOI should be submitted at the following address by dropping the same in a box specially earmarked for the same :
Secretary (Direct Marketing), Life Insurance Corporation of India, Central Office, Yogakshema, 6th Floor (Link), Jeevan Bima Marg, Mumbai 400021, India Tel. No. 022 2202 1956/ 6659 8928 Fax No. 022 22811049 ExpressionofInterest 6

9. Vendor shall bear all cost associated with the preparation and submission of their proposals. LIC is not bound to accept any proposal, and reserves the right to annul the selection process at any time prior to Contract award, without thereby incurring any liability in any form, to the Vendors. 10.The document is only a request for information and not request for proposal. Without limiting its rights in law or otherwise, LIC reserves the right, in its absolute discretion, at all times, in relation to accepting or rejecting any EOI response; Varying or discontinuing the EOI and related processes. LIC shall not be bound to give reasons for any decision made under this clause and its decision will be final and binding on all respondents to this EOI. 11.If any information sought in this document is missing or not clearly specified by the applicant, it will be assumed that the organization is not in a position to supply the information. 12.If need arises, LIC can call for any additional information not specified above. 13.Governing laws / Jurisdiction All matters relating to this activity shall be governed by the laws of Union of India. Courts at Mumbai shall have the jurisdiction to decide or adjudicate on any matter, which may arise.

ImportantTimelines
nd LastdateofreceiptofEOI Monday,22 August,2011 by4.00PM th Presentationbyshortlisted 26 Augustto th Vendors(tentativedates) 30 August,20011

Executive Director (Direct Marketing)

ExpressionofInterest

FORMAT I LETTER OF EOI SUBMISSION

REF: [Location, Date]

To: Executive Director (Direct Marketing), Life Insurance Corporation of India, Central Office, Yogakshema, 6th Floor (Link), Jeevan Bima Marg, Mumbai 400021, India Madam, We, the undersigned, offer to provide our service for SALES PROCESS AUTOMATION in accordance with your Invitation for EOI dated ../../2011. We are hereby submitting our Response with all the desired information and documents. We hereby declare that all the information and statements made in this Response are true and accept that any misrepresentation contained therein may lead to our disqualification. We understand you are not bound to accept this or any other response that you may receive.

Yours sincerely,

Authorized Signature [In full and initials]: Name and Title of Signatory: Name of Firm: Address:

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FORMAT II

VENDORS ORGANISATION AND EXPERIENCE

A Vendors Organization [Provide here a brief description of the background and organization of your firm / entity and each associate for this assignment / job. The brief description should also include ownership details, date and place of incorporation of the firm, objectives of the firm, etc.] B Vendors Experience [Using the format below, provide information on each assignment / job for which your firm was legally contracted as a corporate entity for carrying out assignment / job similar to the ones requested under this assignment/ job during the last 5 financial years. 1. 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 Firms Name: Assignment / Job Name : Description of Project : Approx. value of the contract (in Rupees) : Country : Location within country : Duration of Assignment / Job (months) : Name of Employer : Address : Total No. of personmonth of the Assignment / Job : Approx. value of the Assignment / Job provided by your firm under the contract (in Rupees) : Start date (month / year) : Completion date (month / year) : Name of associated Vendors, if any : No. of personmonths provided by associated Vendors : Name of senior professional staff of your firm involved and functions performed : Description of actual Assignment / Job provided by your staff within the Assignment / Job :

Note: Please provide documentary evidence from the client i.e. copy of work order/contract/certificates for each of above mentioned assignment. The experience shall not be considered for evaluation if such requisite support documents are not provided with the proposal.

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FORMAT III CURRICULUM VITAE (CV) FOR KEY PROFESSIONAL STAFF (Members of the Proposed project team)
1. Name of Staff: [Insert full name]: 2. Name of Firm: [Insert name of firm proposing the staff]: 3. Current Position in the firm: [For each position of key professional separate form will be prepared]: 4. Date of Birth: 5. Nationality: 6. Education: [Indicate college/university and other specialized education of staff member, giving names of institutions, degrees obtained and dates of obtainment]: 7. Membership of Professional Associations: 8. Other Training: 9. Countries of Work Experience: [List countries where staff has worked in the last ten years]: 10. Languages [For each language indicate proficiency: good, fair, or poor in speaking, reading and writing]: 11. Employment Record: [Starting with present position, list in reverse order every employment held by staff member since graduation, giving for each employment (see format here below): Dates of employment, name of employing organization, positions held]: From [Year]: to [Year]: Employer: Positions held: 12. Work Undertaken that Best Illustrates Capability to Handle the Tasks Assigned: [Among the Assignment / Jobs in which the staff has been involved, indicate the following information for those Assignment / jobs that best illustrate staff capability to handle the tasks desired by LIC]: Name of Assignment / job or Project: Year: Location: Employer: Main Project Features: Positions held: Activities performed: Duration of Engagement: 13. Certification (from key professional staff concerned): I, the undersigned, certify that to the best of my knowledge and belief, this CV correctly describes me, my qualifications, and my experience. [Signature of staff member] 14. Certification (from the firm): I, the undersigned, on behalf of the firm, certify that to the best of my knowledge and belief, this CV correctly describes the staff proposed to be deployed in the assignment of LIC, his qualifications and his experience. I understand that any willful misstatement described herein may lead to firms disqualification or dismissal, if engaged. [Signature of authorized representative] [Full Name and Title of Signatory]: Name of the Firm: Address and Contact Details: Date:

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FORMAT IV INFORMATION REGARDING ANY CONFLICTING ACTIVITIES AND DECLARATION THEREOF

Are there any activities carried out by your firm or Group Company which are of conflicting nature as mentioned in EOI Document? If yes, please furnish details of any such activities.

If no, please certify, We hereby declare that our firm, our associate / group firm are not involved in any such activities which can be termed as conflicting activities as mentioned in the concerned EOI Document. We also acknowledge that in case of misrepresentation of the information, our proposals / contract shall be rejected / terminated by LIC, which shall be binding on us.

Authorized Signature [In full and initials]: Name and Title of Signatory: Name of Firm: Address:

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FORMAT V

REVENUE AND PROFIT FIGURES FOR THE LAST THREE YEARS

(Please provide the figures in Indian Rupees)
Table 1: Revenue from similar activities Serial Financial Total turn over No. Year (Cr. Rs.) of the firm 1. 200809 2. 200910 3. 201011 in India (in Rs.) Revenue from services in India (Cr. Rs.) Profit / Loss (Cr. Rs.) Net worth

Table 2: Revenue from similar activities globally (in USD) Serial Financial Total turn over Revenue from No. Year (USD) of the Global Services firm (USD) 1. 200809 2. 200910 3. 201011

Profit / Loss (USD)

Net worth

Note: a) b) c) Please provide the exchange rate (with date), if used for the conversion from other currency. Please provide sufficient details about the financial strength of the firm. Please attach certified copies of audited revenue accounts showing income from similar activities & Balance Sheets for last 3 financial years.

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FORMAT VI

EOI SUBMISSION CHECKLIST

1. Eligibility Criteria 1.1 The Applicant should be a professional firm of international repute having : a) Experience and expertise, in assignments of similar nature in a large organization, preferably in insurance sector. b) Experience of operation in India, and familiarity with the Indian laws and system and also Cyber laws. c) Experience with renowned public sector institutions/ renowned private sector companies. [YES / NO] [Mention page numbers, enclosures for the supporting evidence] 1.2 The firm should have minimum two number of qualified personnel with experience and expertise on its roll, who can be deployed on this project as a committed resource for the contractual period and to submit a list of such personnel to LIC. [YES / NO] [Mention page numbers, enclosures for the supporting evidence] 1.3 Are there any activities carried out by your firm or Group Company which are of conflicting nature as stated in the EOI Document? [YES / NO] Is the disclosure submitted [YES / NO]

2.

Submission Checklist :
Following documents are to be submitted in response to the EOI (Kindly use the formats wherever provided). Please indicate against each item of this checklist the page numbers and the enclosures of your proposal that covers the desired requirement. 1. Application Form. (Format I) [YES / NO] [Mention page numbers, enclosures for the supporting evidence]

2.

Interested vendors should provide desired information on their financials indicating their financial strength. Certified copies of audited revenue accounts showing income from software development & Balance Sheets of the company for the last 3 financial years. (Format V) [YES / NO] [Mention page numbers, enclosures for the supporting evidence]

3. Submit Documentary evidence of successful completion of similar projects, in the Indian as well as the global context, in the financial sector. The document should bring out (a) the nature of the project (b) deliverables (c) cost of the project (d) the client for whom the project was undertaken (e) duration of the project (Format II) [YES / NO] ExpressionofInterest 13

[Mention page numbers, enclosures for the supporting evidence] 4. Information on the technical and managerial capabilities of the firm. [YES / NO] [Mention page numbers, enclosures for the supporting evidence] 5. Information submitted on the core business and years in business. [YES / NO] 6. Information submitted on the qualifications of key staff. Profiles of key personnel, clearly demonstrating their ability to implement the abovementioned activities. (Format III) [YES / NO] [Mention page numbers, enclosures for the supporting evidence] 7. Disclosure on Conflict of Interest (Format IV) [YES / NO] [Mention page numbers, enclosures for the supporting evidence] 8. List of litigation pending by / against the firm along with the value. [YES / NO] [Mention page numbers, enclosures for the supporting evidence] 9. List of offices in India, of the applicant firm/s. [YES / NO] [Mention page numbers, enclosures for the supporting evidence]

Authorized Signature [In full and initials]: Name and Title of Signatory: Name of Firm: Address and Contact Details:

END OF DOCUMENT
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