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INDEX

Part-IAbout 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-IIPrinciples 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 policyholder’s protection act 2002

Continued…


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Part-IIISelling 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-IVUnderwriting Aspects

1. Selection and Classification andof Risk (Underwriting)

2. Age Proofs

3. Sum Under Consideration (SUC)

4. Non Medical Rules

5. Non Medical Rules under Single Premium and

Bima BachatContinued…


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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 NRI’s

17. Occupational Ratings

18. Financial Underwriting

19. Summary of Financial Underwriting

20. Example of Financial Underwriting

Part-VBasic Insurance Contracts and Riders

1. Basic Insurance Contracts

2. Accident & Disability Benefit Rider

Continued…


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Part-VIIndividual Insurance Plans

Plan No. Name of Plan

TERM INSURANCE PLANS822. Anmol Jeevan - II

823. Amulya Jeevan- II

825. e-Term

Comparison 823 v/s 825

ENDOWMENT TYPE PLANS814. New Endowment Plan

815. New Jeevan Anand

Paid and SV under 815.

827. Jeevan Rakshak

MONEY BACK PLANS820. New Money Back Plan – 20 years

821. New Money Back Plan- 25 years

PENSION PLANS 818. New Jeevan Nidhi

189. New Jeevan Akshay – VI

828. Varishtha Pension Bima Yojana

SINGLE PREMIUM PLANS 816. New Bima Bachat

817. Single Premium Endowment Plan

826. Jeevan Shagun

Continued…


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HEALTH INSURANCE PLAN904 Jeevan Arogya

Part-VIIBusiness Insurance

1. Key Man Insurance

2. Partnership Insurance

3. Employer Employee Insurance

4. Employee Retention Scheme

5. Salary Saving Scheme

Part-VIIIGroup 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…


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Part-IXFinancial 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-XAppendix

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 Policies13. 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


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PLAN 814 – New Endowment Plan

(1) Details & Benefits

(2) Examples

(3) Features & Conditions

(4) Underwriting Rules


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PLAN 814LIC’s 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 ofannualized 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.

UIN No: 512N277V01


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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.


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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 yearsMaximum 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 Month’s benefits.

Proposal Form: 300, 340 or 360.

Service Tax:

1st

Year of Policy : 3.09%

2nd

Year onwards : 1.545%

Tax Benefits :

On Basic Premiums : u/s 80C

Maturity/Death claim : u/s 10(10D)


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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 MM’s

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.


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SPECIAL MEDICAL REPORT CHART Applicable to proposals under medical category for all plans

(Cir: U&R/4/2008 dt. 15/01/2008)

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 requiredfor sum to be revived upto` 50,000/-.

SumUnder

Consideration

Age at Entry (Last Birthday)

Upto 35years

36 to 45 years 46 to 55 years 56 & above

Upto 2,00,000 Nil Nil NilRest ECG, FBS

(Rs.150/-)

2,00,001 to5,00,000

Nil NilRest ECG ,FBS

(Rs.150/-)

Rest ECG, FBS,Lipidogram, RUA,

Hb%( Rs. 380/-)

5,00,001 to10,00,000

Nil Nil


Hb%

( Rs.380/-)


Hb%

( Rs.380/-)

10,00,001 to15,00,000

Nil

Lipidogarm,FBS, RUA ,

Elisa for HIV,Hb%

(Rs.520/-)

Rest ECG,SBT-13, RUA,

Hb%(Rs. 1,170/-)

Rest ECG,Haemogram,

SBT-13, CTMT,RUA,

(Rs. 2,020/-)

15,00,001 to35,00,000

Lipidogarm,

FBS, Elisafor HIV, Hb%

(Rs. 490/-)

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/-)

35,00,001 to50,00,000

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/-)


(Rs. 2,370/-)


(Rs. 2,370/-)


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Results of LIC 2013-14


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Profit & Loss and Death Claim Analysisof 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.

http://www.irda.gov.in/http://www.irda.gov.in/http://www.irda.gov.in/


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Notes:1. Out of 23 Private Companies 17 companies are

still showing total carried forward losses, someare in operation now for more than 12 years.

2. Higher amount of claims are being rejected bythe private companies as compared with LIC ofIndia.

3. During the year 2012-13 Claim settlementperformance of Private Companies hasreduced as compared with last year.

4. The outstanding claims of private companies

are also on higher side; this shows delay insettlement of claims by private companies.

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