project of gita

8/3/2019 Project of Gita

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EXECUTIVE SUMMARY Someone has great ly said that pract ical knowledge is far better thanclassroom teaching. During this project I fully realized this and cometoknow about the present real world of Insurance sector

. It includes all theactivities involved in providing insurance products to the finalcustomers.I a m p lea se d t o k now a bout the consume rs ’ w an ts andcompet itorsactivities in the real world of Insurance.The subject of my studyis to analyze the present insurance sector and products offered by LICby applying various tools like cold calling andthrough direct interaction withcustomer’s. I have also done research onthe growth of private life insurancecompanies in the last five years.The report contains first of all brief introduction about thecompany. Then itcontains the current status of privateinsurance companies and foreigninsurance companies inIndia.I also put forward recommendations of the consumers and

conclusionstha t w il l help LIC to prov ide con sume r s ati sfa ctor y serv ices in th

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’sFundValue / monetary value as the case may be, shall be payable after thecompletion of the third policy anniversary. No amount shall be payable

within 3 years from the dateof commencement of policy.I.In case of Partial withdrawal: Partial Withdrawals shall not be allowed undersuch a policy even after completion of 3 years period.iv)Revival: If due premium is not paid within the days of grace, the policylapses. Alapsed policy can be revived during the period of two years from thedue date of firstunpaid premium or before maturity, whichever is earlier. Theperiod 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 fullyears, the policy may be revivedwithin two years from the due date of first

unpaid premium. The revival shall be madeon submission of proof of continued insurability to the satisfaction of the Corporationand the paymentof all the arrears of premium without interest.If at least 3 full years’premiums have been paid and subsequent premiums are not paid, the policymay be revived within two years from the due date of first unpaid premiumbut before the date of maturity. No proof of continued insurability shallberequired but all arrears of premium without interest shall be required to bepaid.The Corporation reserves the right to accept the revival at its own terms



or decline therevival of a lapsed policy. The revival of a lapsed policy shalltake effect only after the same is approved by the Corporation and isspecifically communicated in writingto the Proposer / LifeAssured.Irrespective of what is stated above, if less than 3 years’ premiums

Risks borne by the Policyholder:i) LIC’s Fortune Plus is a Unit Linked Life Insurance product which is differentfromthe traditional insurance products and are subject to the risk factors.ii) The premium paid in Unit Linked Life Insurance policies are subject toinvestmentrisks associated with capital markets and the NAVs of the unitsmay go up or down based on the performance of fund and factors influencingthe capital market and theinsured is responsible for his/her decisions.iii) Life

Insurance Corporation of India is only the name of the InsuranceCompanyand LIC’s Fortune Plus is only the name of the unit linked lifeinsurance contract anddoes not in any way indicate the quality of thecontract, its future prospects or returns.iv) Please know the associated risksand the applicable charges, from your Insuranceagent or the Intermediary orpolicy document of the insurer.v) The various funds offered under thiscontract are the names of the funds and do notin any way indicate thequality of these plans, their future prospects and returns.vi) All benefitsunder the policy are also subject to the Tax Laws and otherfinancialenactments as they exist from time to time.Cooling off period:

If you are not satisfied with the “Terms and Conditions” of the policy, youmay returnthe 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 premiumwill be 25% of the first year premium.In case the Life Assured commitssuicide at any time within one year, the Corporationwill not entertain anyclaim by virtue of the policy except to the extent of thePolicyholder’s Fund

Value on death.]BENEFITSDisability Benefit:In case policy holder becomes totally and permanently disabled due to anaccident before reaching the age of 70 and the policy is in full force, he willnot be required to pay further premiums, (the Disability Benefit is available



in respect of the firstRs.20000 sum assured on anyone life) and the policywill continue to be in force.Accident Benefit:By paying a small extra premium of Rs. l per Rs. 1000/- sum assured peryear he or his family are entitled to the following benefits on death or

permanent disabilitycaused by accident. Even students above the age of 18years can avail of this benefit.Premium Stoppage:If payment of premiums ceases after at least THREE years' premiums havebeen paid , a free paid-up policy for a reduced sum assured will beautomatically secured provided the reduced sum assured, exclusive of anyattached bonus, is not less thanRs. 250/-.

The reduced sum assured will become payable on the event as stipulatedinthe policy.Bonus:

Is there anything extra payable besides the sum assured at the time of claimsettlement? Yes, but only if it is a 'with profits' policy. Every year theLife InsuranceCorporation distributes its surplus among policyholder to 'withprofits' polices in theform of bonuses. Substantial bonuses have beendeclared in the past after eachvaluation of policy liabilities

BENEFITSSurvival benefits:Payment of full Sum' Assured + Vested Bonus + Final Additional bonus, if any.

Death Benefits:Payment of full sum assured + Vested Bonus.

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 tophysicallyhandicapped persons subject to certain conditions. Standard ageproof will have to besubmitted 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 paymentof the premiumthen due, the policy will still be valid and the Sum Assuredpaid after deduction of thesaid premium as also unpaid premiums falling due



before the next policy anniversaryof the Policy. If the premium is not paidbefore the expiry of the days of grace, thePolicy gets lapsed.

REVIVALIf the Policy has lapsed, it may be revived during the life time of the LifeAssured, but before the date of expiry of policy term, on submission of proof of continuedinsurability to the satisfaction of the Corporation and thepayment of all the arrears of premium together with interest at such rate asmay be prevailing at the time of the payment. The corporation reserves theright to acceptor decline the revival of discontinued policy. The revival of the discontinuedpolicy shall take effect only after the same is approved by the Corporationand is specifically communicated to the LifeAssured. The cost of the Medical

reports, including Special Reports, if any, requiredfor the purposes of revivalof the policy, should be borne by the Life Assured.PAYMENT OF CLAIMSNo Claims concession will be applicable to this Policy.BACK-DATING INTEREST The policy can be back dated within the financial year. No dating backinterest shall be charged.BENEFITSSurvival benefits:If one or both the lives survive to the maturity date, the sum assured, alongwith theaccumulated bonus, is payable.



ANMOL JEEVAN - I (WITHOUT PROFITS)BENEFITSOn Death during the Term of the Policy: SumAssuredO n M a tu r i t y :N i l



RESTRICTIONS( A ) M i n i m u m a g e a t e n t r y :1 8 y e a r s ( c o m p l e t e d )( B ) M a x i m u m a g e a t e n t r y: 5 5 y e a r s ( n e a r e r birthday)

(C)

M a x i m u m a g e a t m a t u r i ty : 6 5 y e a r s ( D ) M i ni m u m T e r m : 5y e a r s ( E ) M a x im u m T e r m : 2 5y e a r s ( F ) M i n i m u m Su m A s s u r e d : R s . F i v e L ak h ( G ) M a x i m u m S u m A s s u r e d : R s . T h r e eC r o r e ( I n c l u s i v e o f a l l term Assurance plans)

Note: The policy would be issued in multiples of Rs. one lakh for Sum Assured above Rs. five lakh.( H ) M o d e o f P r e m i u m P a y m e n t : Y e a r l y , H a l f - Y e a r l y a n dS i ng l e p r e m i um . ( G )Rebates:•Sum Assured Rebate:

NIL in case of regular premium policies and Re. lSum Assured for policies of Rs.25 lakh and above in case of single premium policies.•

M o d e R e b a t e : 1 % o f A n n u a l p r e m i u m f o r y e a r l ym o d e a n d n i l f o r

Half-Yearly mode.



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 onthe life of the surviving partner without him/her having topay 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 partnerin case both thehusband and wife were to die during the term of the policy.Vested bonus would also be paid along with the sum assured on the seconddeath.NEW INSURANCE SCHEMESUniversal Health Insurance Scheme The Universal Health Insurance policy is available to groups of 100 or morefamilies.The policy provides for reimbursement of medical expenses uptoRs.30000/- towardshospitalization floated amongst the members of thefamily, death cover due to anaccident for Rs.25000 to the earning head of

the family and compensation due to lossof earning head of the family @Rs.50/- per day upto a maximum of 15 days, after awaiting period of threedays, when the earning head of the family is hospitalized. The premiumunder the policy is Rs.1! - Per day (Le. Rs.365/-per annum) for anindividual,Rs. 1.50 per day for a family of five limited to spouse and children (i.e.Rs.548per annum), and Rs.2/- per day (i.e. Rs. 730 per annum) forcoveringdependent parents within the overall family size of seven. A subsidyof Rs. 100 per year towards annual premium for "Below Poverty Life" familiesis also providedunder the Scheme.For purpose of this policy HOSPITAL means:•

Any Hospital/Nursing home registered with the local authorities and underthesupervision of a registered and qualified Medical practitioner.•Hospital, Nursing Home runs by Government.•Enlisted hospitals run by NGOs/ Trusts/ selected private hospitals withfixedschedule of charges.•Hospitalization should be for a minimum period of 24 hours.However, thistime limit is not applied to some specific treatments and also where duetotechnological 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 totalreimbursement of Rs.30,000/- can be availed of individually or collectively bymembers of the family

Insurance plans:As individuals it is inherent to differ. Each individual’s insurance needsandrequirements are different from that of the others. LIC’s Insurance Plansare a policythat talk to you individually and gives the most suitable optionsthat can fit ones’requirement. Jeevan AnuragKomal JeevanCDA Endowment Vesting At

21 Marriage Endowment Or Educational Annuity PlanCDA Endowment Vesting At 18 Jeevan Kishore JeevanChhayaChild Career PlanChild Future Plan Jeevan Aadhar Jeevan Vishwas The Endowment AssurancePolicy The Endowment Assurance Policy-Limited Payment Jeevan Mitra (Double CoverEndowment Plan) Jeevan Mitra (Triple Cover Endowment Plan) Jeevan AnandNew Janaraksha Plan JeevanAmrit Jeevan Shree- I Jeevan Pramukh24

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The Money Back Policy-20 Years The Money Back Policy-25 Years Jeevan Surabhi-15 Years Jeevan Surabhi-20 Years Jeevan Surabhi-25 Years Jeevan Rekha(closed for sale)BimaBachat Jeevan Bharati The Whole Life Policy The Whole Life Policy- Limited Payment The Whole Life Policy- Single Premium Jeevan Rekha(closed for sale)Jeevan Anand Jeevan Tarang Two Year Temporary Assurance Policy The Convertible Term Assurance Policy Anmol Jeevan-IAmulya Jeevan JeevanSaathi Mortgage RedemptionUnit plans:Unit plans are investment plans for those who realize the worth of hard-earnedmoney. These plans help you see your savings yield rich benefits andhelp you savetax even if you don’t have consistent income.• Jeevan plus•Future plus25



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Bima plus•Market plus•Money plus•Profit plus



•Fortune plusFortune plus:It is a unit linked assurance plan where premium payment term (PPT) is 5years andthe 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 typechosen. The Unit Fund is subject to various chargesand value of the unitsmay increase or decrease, depending on the Net Asset Value(NAV). The plantherefore 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 premiumwill beRs.20,000/- and you may pay any amount exceeding it. From secondyear 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 policyanniversary subjectto the following:i) In case of minors, partial withdrawals shall be allowed fromthe policy anniversarycoinciding with or next following the date on which thelife assured attains majority(i.e. on or after18th birthday).ii) Partialwithdrawals may be in the form of fixed amount or in the form of fixednumber of units.iii) For 2 years’ period from the date of withdrawal, theSum Assured under the Basic plan shall be reduced to the extent of theamount of partial withdrawals made.iv) Under policies where less than 3years’ premiums have been paid and further premiums are not paid, thepartial withdrawals shall not be allowed.v) Under policies where atleast 3

years’ premiums have been paid, partial withdrawalwill be allowed subject toPolicyholder’s Fund Value being atleast Rs. 10,000/-.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 thePolicy, the Policy will lapse. A lapsed policy can be revived duringthe periodof two years from the due date of first unpaid premium.I) Where atleast 3years’ premiums have been paid, the Life Cover and AccidentBenefit rider, if any, shall continue during the revival period.During this period, the chargesfor Mortality and Accident Benefit cover, if any, shall be taken, in addition toother charges, by canceling an appropriate number of units outof thePolicyholder’s Fund Value every month. This will continue to provide



relevantrisk covers for:i. two years from the due date of first unpaidpremium, or ii. Till the date of maturity, or iii. Till such period that thePolicyholder’s Fund Value reduces to Rs. 5,000/-,whichever is earlier.Thebenefits payable under the policy in different contingencies during thisperiodshal l be as under:

A.In case of Death: Higher of Sum assured under the Basic Plan or thePolicyholder’sFund Value. The Sum Assured shall be subject to provisions of Partial Withdrawalsmade, if any.B.In case of Death due to accident: Accident Benefit Sum Assured in additionto theamount 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

FundValue. The Surrender value, however, shall be paid only after thecompletion of 3 policy years.E.In case of Partial Withdrawals: For 2 year’s period from the date of withdrawal, thesum assured under the basic plan shall be reduced to theextent of the amount of partial withdrawals made.II)Where the policy lapses without payment of at least 3 years’ premiums, theLifeCover and Accident Benefit rider cover, if any, shall cease and no chargesfor these benefits shall be deducted. However, deduction of all the othercharges 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’sFundValue / monetary value as the case may be, shall be payable after thecompletion of the third policy anniversary. No amount shall be payablewithin 3 years from the dateof commencement of policy.I.In case of Partial withdrawal: Partial Withdrawals shall not be allowed undersuch a policy even after completion of 3 years period.iv)



Revival: If due premium is not paid within the days of grace, the policylapses. Alapsed policy can be revived during the period of two years from thedue date of firstunpaid premium or before maturity, whichever is earlier. Theperiod 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 revivedwithin two years from the due date of firstunpaid premium. The revival shall be madeon submission of proof of continued insurability to the satisfaction of the Corporationand the paymentof all the arrears of premium without interest.If at least 3 full years’premiums have been paid and subsequent premiums are not paid, the policymay be revived within two years from the due date of first unpaid premiumbut before the date of maturity. No proof of continued insurability shallberequired but all arrears of premium without interest shall be required to bepaid.The Corporation reserves the right to accept the revival at its own termsor decline therevival of a lapsed policy. The revival of a lapsed policy shalltake effect only after the same is approved by the Corporation and is

specifically communicated in writingto the Proposer / LifeAssured.Irrespective of what is stated above, if less than 3 years’ premiumshave been paid andthe Policyholder’s Fund Value is not sufficient to recoverthe charges, the policy shall be terminated and thereafter revival will not beentertained. If 3 years’ or more than 3years’ premiums have been paid andthe Policyholder’s Fund Value reduces to Rs.5000/-, the policy shall terminateand Policyholder’s Fund Value as on such date shall be refunded to the LifeAssured and thereafter revival will not be allowed.v)Settlement Option: When the policy comes for maturity, you mayexercise“Settlement Option” and may receive the policy money in

instalments spread over a period of not more than five years from the dateof maturity. There shall not be anylife cover during this period. The value of installment payable on the date specifiedshall be subject to investment riski.e. the NAV may go up or down depending uponthe performance of the fund.Reinstatement:A policy once surrendered will not be reinstated

Risks borne by the Policyholder:i) LIC’s Fortune Plus is a Unit Linked Life Insurance product which is differentfromthe traditional insurance products and are subject to the risk factors.ii)

The premium paid in Unit Linked Life Insurance policies are subject toinvestmentrisks associated with capital markets and the NAVs of the unitsmay go up or down based on the performance of fund and factors influencingthe capital market and theinsured is responsible for his/her decisions.iii) LifeInsurance Corporation of India is only the name of the InsuranceCompanyand LIC’s Fortune Plus is only the name of the unit linked lifeinsurance contract anddoes not in any way indicate the quality of thecontract, its future prospects or returns.iv) Please know the associated risks



and the applicable charges, from your Insuranceagent or the Intermediary orpolicy document of the insurer.v) The various funds offered under thiscontract are the names of the funds and do notin any way indicate thequality of these plans, their future prospects and returns.vi) All benefitsunder the policy are also subject to the Tax Laws and other

financialenactments as they exist from time to time.Cooling off period:If you are not satisfied with the “Terms and Conditions” of the policy, youmay returnthe 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 premiumwill be 25% of the first year premium.In case the Life Assured commits

suicide at any time within one year, the Corporationwill not entertain anyclaim by virtue of the policy except to the extent of thePolicyholder’s FundValue on death

MARKET PLUS“IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO ISBORNEBY THE POLICYHOLDER"LIC’s MARKET PLUS:

This is a unit linked deferred pension plan. You can take the plan with orwithout risk cover. You can also choose the level of cover within the limits,which will depend onwhether the policy is a Single premium or Regularpremium contract and on the levelof premium you agree to pay.Theallocated premiums will be applied to purchase units as per the Fund typechosen.Your Unit Account will be subject to deduction of charges as specifiedin the PolicyConditions. The value of the units in the Unit Fund may increaseor decrease,depending on the investment return of the assets representingthe 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 Singlepremium can be paid subject to a minimum of Rs.10,000 and thereafter inmultiples of Rs.1, 000.ii.Benefits: A) Death Benefit:



If the Life cover is opted for, the Sum Assured under the Basic Plantogether with the Fund Value of units either as a lump sum or as pension. Incase the policy is taken without life cover, then the Fund Value of the unitsheld in thePolicyholder’s Unit Account shall be payable either as a lump sumor as a pension.The amount of pension will depend on the then prevailing

immediate annuityrates under the annuity option chosen.B) Benefit on Vesting:30

On your surviving to the date of vesting, the Fund Value of the units heldinyour Unit Account will compulsorily be utilized to provide a pension basedonthe then prevailing immediate annuity rates under the relevant annuityoption.However, you may opt to commute up to one-third of the Benefit to

be paid asa lump sum. Further, you may choose to purchase pension fromLIC or other life insurance company.Accident Benefit Option:If you have opted for life cover, you may opt for Accident Benefit equal to lifecover subject to minimum Rs. 25,000 andmaximum Rs. 50 lakh (taken allpolicies with LIC of India and other insurers).In case of death by Accident, anadditional sum equal to Accident benefit will be payable.Eligibility Conditions And Other Restrictions: Basic PlanM i n i m u m A g e a t e n t r y : 1 8 y e a r s c o m

p l e t e d M a x i m u m A g e a t e n t r y : 7 0 y e a r s ( a g en e a r e r b i r t h d a y ) . H o w e v e r i f life cover is opted for, then65 yearsM i n i m u m A g e a t v e s t i n g : 4 0 y e a r s ( a g el a s t b i r t h d a y ) M a x i m u m V e s t i n g A g e : 7 5 y e a rs ( a g e l a s t b i r t h d a y ) M i n i m u m D e f e r m e n t T er m : 5 y e a r s M i n i m u m S u m A s s u r e d : R s .2 5 , 0 0 0 f o r S i n g l e p r e m i u m Rs. 50,000 for RegularpremiumM a x i m u m S u m A s s u r e d : S i n g l e P r e m i u m - E qu a l t o s i n g l e p r e m i u m Regular Premium - 20 times of theannualized premiumi.Investment of Funds:

The premiums allocated to purchase units will bestrictly invested accordingto the investment pattern committed in various fundtypes. Various typesof fund and their investment pattern will be as under:F u n d T y p e I S h o r t- t e r mi n v e s t m e n t s such asmoneymarket instruments(including Govt.Securities &CorporateDebt)Investment inListed EquitySharesBond Fund



N o t l e s s t ha n 8 0 % 1 0 0 % N ilSecured Fund

N o t l e s s t h a n 6 5 % N o t m o r e t h a n 8 5 % N o t

l e s s t h a n 15% & not morethan 35%31



Balanced FundN o t l e s s t h a n 5 0 % N o t m o r e t h a n 7 0 % N o t

l e s s t h a n 30% & not morethan 50%Growth Fund

N o t l e s s t h a n 2 0 % N o t m o r e t h a n 4 0 % N o tl e s s t h a n 60% & not morethan 80%i i .The Pol icyholder has theopti on to choo se any ONE of the abo ve 4 f und s. Incase no fundhas been opted for, the allocated premiums shall, by default, beinvested inthe SECURED FUND.iii.

Method of Calculation of Unit price:Units will be allotted based on the NetAsset Value (NAV) of the respectivefund as on the date of allotment. There isno Bid-Offer spread (the Bid priceand Offer price of units will both be equalto the NAV). The NAV will becomputed on daily basis and will be based oninvestment

inGovernment / Government Guaranteed Securities /Corporate Debtntperformance, Fund Management Charge and whether fundis expanding orcontracting under each fund type.iv.Charges under the Plan:Units will be allotted based on the Net Asset Value(NAV) of the respectivefund as on the date of allotment. There is no Bid-Offer spread (the Bid priceand Offer price of units will both be equal to the NAV). The NAV will becomputed on daily basis and will be based oninvestment performance, FundManagement Charge and whether fund isexpanding or contracting under

each fund type.(A) Premium Allocation Charge: This is the percentage of the premiumappropriated towards charges fromthe premium received. The balance knownas allocation rate constitutes thatpart of the premium which is utilized to purchase (Investment) units for thepolicy. The allocation charges are as below:For Single premium policies: 3.3%For Regular premium policies:



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 specificand will be taken

every month.Accident Benefit charge: This is the cost of Accident Benefit rider and will be levied every month atthe rate of Rs. 0.50 per thousand Accident BenefitSum Assured per policyyear.vi.(C) Other Charges:Policy Administration charge:Rs. 60/- per month during the first policyyear and Rs. 20/- per monththereafter, throughout the term of the policy.Fund Management Charge: This is the charge levied as a percentage of thevalue of units and shall beappropriated 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 UnitFund 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 onefund 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 chargeof Rs.100 per switch.Bid/Offer Spread:Nil.Surrender Charge:Nil

Service Tax Charge:A service tax charge shall be levied on the Mortalityand Accident Benefitrider charge, if any, on a monthly basis. The level of thischarge will be as perthe 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 andhence effective rate is 12.24%.Miscellaneous Charge: This is a charge levied for an alteration within thecontract, such as reductionin policy term, change in premium mode, etc. Analteration may be allowedsubject to a charge of Rs. 50/-.(D) Right to revise charges:

The Corporation reserves the right to revise allor any of the above chargesexcept the premium allocation charge and chargesfor risk covers, with theprior approval of IRDA.vi i. Al th ou gh th e char ge s ar e re vi ew ab le

Surrender: The surrender value, if any, is payable only after the completionof the thirdpolicy anniversary both under Single and Regular premiumContract. Nopartial 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, 000without any limit at anytime during theterm of the policy. In case of yearly,half-yearly or quarterly mode of premium payment such Top-up can be paidonly if all premiums have been paid under the policy

.ii)Switching: You can switch between any fund types during the policy termsubject toswitching charges, if any.iii) Discontinuance of premiums and revival:If premiums are payableyearly, half-yearly or quarterly and the same havenot been duly paid withinthe days of grace under the Policy, the Policy willlapse. A lapsed policy can be revived during the period of two years from thedue date of first unpaid premium.If you have opted for life cover, underRegular premium policies where atleast 3 years’ premiums have been paid,and the subsequent premiums are not paid, the life cover and accident

benefit cover, if any, will be compulsorilyavailable under the policy and thecharges for the same if any, shall be taken,in addition to other charges, bycanceling an appropriate number of units outof the Policyholder’s UnitAccount every month subject to the following :two years from the due dateof first unpaid premium, or two years from the due date of first unpaidpremium, or till such period that the Policyholder’s Unit Account reduces toone 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 atvesting date will be converted to an annuityis not guaranteed and will be based on the prevailing immediate annuityrates under the relevant annuityoption at the vesting date.x.Reinstatement:A policy once surrendered cannot be reinstated.xi.Risks borne by the Policyholder:34

CONCLUSIONAfter overhauling the all situation that boosted a number of Pvt.Companiesassociated with multinational in the Insurance Sector to givebefitting competition tothe established behemoth LIC in public sector, wecome at the conclusion that :1 ) T h e r e i s v e r y t o u g hc o m p e t i t i o n a m o n g t h e p r i v a t e i n s u r a n c e



c o m p a n i e s on the level of new trend of advertising to lull a major part of C u s t o m e r s . 2 ) L I C i s n o t l e f t b e h i n d i n t h ep r e s e n t r a c e o f a d v e r t i s e m e n t . 3 ) T h e e n t r y o f t h eP v t . P l a y e r s i n t h e I n s u r a n c e S e c t o r h a s e x p a n d e dt h e product segment to meet the different level of the requirement of

thecustomers. It has brought about greater choice to thecustomers.4 ) P r i v a t e i n s u r e r s h a v e r e s t r i c t e dr e a c h t o t h e c u s t o m e r s . 5 ) L I C h a s v a s t m a r k e t a n dv e r y f i r m g r i p o n i t s t r a d i t i o n a l c u s t o m e r sa n d monopoly of life insurance products.6 ) B a n k a s s u r a n c e - t h a ta l l o w s l i f e i n s u r e r s t o l e v e r a g e o n t h e r i s kp r o d u c t through bank network, was adopted by private players. But LICwas alsonot left behind as picking up majority stake in the corporation Bankandlarge equity stake in the Oriental Bank of Commerce.IRDA is also playingvery comprehensive role by regulating norms mandating to private playersin this sector, that increases the confidence level of the customers tothe

private players.

CONCLUSIONS GOT BY THE CONSUMER SURVEY ANALYSIS1 ) N o w d a y s a l s o I n s u r a n c e i s m o s t p o p u l a r a s m o r ep l a i n p r o t e c t i o n a g a i n s t death and people are unaware about theother aspects of insurance.2 ) A c c o r d i n g t o c u r r e n t s c e n a r i ol i f e a n d m a t e r I n s u r a n c e a r e t h e m a s t popular onesfollowed by fire Insurance.3 ) M a j o r i t y o f p e o p l e c o n s i d e r t h eI n s u r a n c ep r e m i u m p a i d b y t h e m a s r e a s o n a b l e . 4 ) O n l y f e w c o u n t e dp e o p l e a r e u n a w a r e a b o u t t h e e n t r y o f p r i v a t e

p l a y e r s into. The insurance industry and a very high majority of peoplesupporttheir entry.5 ) B y t h e e n t r y o f p r i v a t e p l a y e r s .C o n s u m e r s a r e e x p e c t i n g t h e p r e m i u m t o down whichwould be the biggest blessing.RECOMMENDATIONSIn the modernized well advanced hi-tech approach to the customer everypossiblefacilities and effort to build up the confidence of the rising policyholders towards.Insurance companies, to complete one another nothing isleft to recommend. Butsome recommendations that are intensely felt andhighly required for insures tosustain in the market. These are asfol lows:a)More and more transparency should be ascertained

be tw ee n in sur er s an d policy holders. b)Particularly, in theemerging boom in the insurance company, every insurancecompanyshould be customer centered, and well versed in the handling of problemand grievances of the policy holders.c)Each and Every productlau nch ed b y the Ins ura nce comp any sho uld be in favour of increasing need of policy holders.IRDA should be more and more responsibleto the insurance sector by determiningsome standard. It should bemandatory to every insurers to make more and moreresponsible and



responsive to the policy holders so that comprehensive understandingmaybe developed among policy holders. It may be beneficial on both sides

BIBLIOGRAPHYBROCHURES / 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•v The Insurance Times•Insurance Post

•BOOKS•Dr. Gupta S.P& Dr. Gupta M.P., Business Statistics by Addition 2004,NewDelhi,WEBSITES•w.w.w.liclndia.com•www.lrdaindia.org.com•

www.indiainfoline.com•www.icici.com•www.hdfc.com72

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