INDEX

Executive Summary

CHAPTER-1

Introduction
CHAPTER -2

Company Profile
CHAPTER -3

21

Research Methodology
CHAPTER-4

25

Policies and Plans

CHAPTER -5

53

Findings
CHAPTER -6

55

Conclusion
BIBLIOGRAPHY

57

EXECUTIVE SUMMARY
0

Insurance is the most familiar word or phrase used in todays life. Insurance
companies are those institutes that provide various types of facility and services in
term of there plans and policies to the consumers. The following project has been
made on one of the largest company in insurance sector in India which is owned by
government which is LIFE INSURANCE CORPORATION OF INDIA. The
following project makes an analysis of the products of LIC. The brief summary of
each chapter is discussed as follows:-

CHAPTER-1
It consist of information of the industrial profile of the life insurance sector i.e. when
and how does this sector emerges and how it contributes to the economy,

CHAPTER-2
Chapter 2 includes company profile of LIC i.e. how and when it is formed, which
were the companies that merges and form LIC, its milestones, its objectives, mission
and vision, what is life insurance, board of directors, a brief on the subsidiaries. It
also includes awards and achievements by LIC.

CHAPTER-3
Purpose of the study for which it is conducted, objective while conducting the study
and methodology which consist of the medians used and the tools used to complete
the study.

CHAPTER-4
It includes some of the products offered by LIC, net asset value of the products, tax
benefits to its policy holders categorized according to their age. It also shows the
relationship of LIC with information technology.

CHAPTER-5
1

This chapter includes the findings and analysis retrieved after the study of the of the
project.

CHAPTER-6
Chapter 6 consists of the conclusion arrived after analyzing and findings from the
study.

CHAPTER-1
INRODUCTION
2

INSURANCE COMPANIES IN INDIA

In India, Insurance is a national matter, in which life and general insurance is yet a
booming sector with huge possibilities for different global companies, as life
insurance premiums account to 2.5% and general insurance premiums account to
0.65% of India's GDP. The Indian Insurance sector has gone through several phases
and changes, especially after 1999, when the Govt. of India opened up the insurance
sector for private companies to solicit insurance by passing Insurance Regulatory and
Development Authority (IRDA) Bill, allowing FDI up to 26%. Since then, the
Insurance sector in India is considered as a flourishing market amongst global
insurance companies. However, the largest life insurance company in India is still
owned by the government.
The history of Insurance in India dates back to 1818, when Oriental Life Insurance
Company was established by Europeans in Kolkata to cater to their requirements.
Nevertheless, there was discrimination among the life of foreigners and Indians, as
higher premiums were charged from the latter. In 1870, Indians took a sigh of relief
when Bombay Mutual Life Assurance Society, the first Indian insurance company
covered Indian lives at normal rates. Onset of the 20th century brought a drastic
change in the Insurance sector.
In 1912, the Govt. of India passed two acts - the Life Insurance Companies Act, and
the Provident Fund Act - to regulate the insurance business. National Insurance
Company Ltd, founded in 1906, is the oldest existing insurance company in India.
Earlier, the Insurance sector had only two state insurers - Life Insurers i.e. Life
Insurance Corporation of India (LIC), and General Insurers i.e. General Insurance
Corporation of India (GIC). In December 2000, these subsidiaries were de-linked
from parent company and were declared independent insurance companies: Oriental
Insurance Company Limited, New India Assurance Company Limited, National
Insurance Company Limited and United India Insurance Company Limited.

CHAPTER-2
3

COMPANY PROFILE
Life Insurance in its modern form came to India from England in the year 1818.
Oriental Life Insurance Company started by Europeans in Calcutta was the first life
insurance company on Indian Soil. All the insurance companies established during
that period were brought up with the purpose of looking after the needs of European
community and Indian natives were not being insured by these companies. However,
later with the efforts of eminent people like Babu Muttylal Seal, the foreign life
insurance companies started insuring Indian lives. But Indian lives were being treated
as sub-standard lives and heavy extra premiums were being charged on them.
Bombay Mutual Life Assurance Society heralded the birth of first Indian life
insurance company in the year 1870, and covered Indian lives at normal rates.
Starting as Indian enterprise with highly patriotic motives, insurance companies came
into existence to carry the message of insurance and social security through insurance
to various sectors of society. Bharat Insurance Company (1896) was also one of such
companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise
to more insurance companies. The United India in Madras, National Indian and
National Insurance in Calcutta and the Co-operative Assurance at Lahore were
established in 1906. In 1907, Hindustan Co-operative Insurance Company took its
birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath
Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life
(later Bombay Life) were some of the companies established during the same period.
Prior to 1912 India had no legislation to regulate insurance business. In the year 1912,
the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life
Insurance Companies Act, 1912 made it necessary that the premium rate tables and
periodical valuations of companies should be certified by an actuary. But the Act
discriminated between foreign and Indian companies on many accounts, putting the
Indian companies at a disadvantage.
From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same motives
which inspired our forefathers to bring insurance into existence in this country inspire
us at LIC to take this message of protection to light the lamps of security in as many
homes as possible and to help the people in providing security to their families.
4

Some of the important milestones in the life insurance business in India are:
1818: Oriental Life Insurance Company, the first life insurance company on Indian
soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company
started its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government to
collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with the
objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by the
central government and nationalized. LIC formed by an Act of Parliament, viz. LIC
Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
The General insurance business in India, on the other hand, can trace its roots to the
Triton Insurance Company Ltd., the first general insurance company established in
the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of India,
frames a code of conduct for ensuring fair conduct and sound business practices.
1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the
general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.

LIC SUBSIDIARIES
6

Unlike provisions for private players in the insurance sector, the LIC Act provides for
setting up subsidiaries through policy holders fund. It is due to the LIC act that LIC of
India has a number of subsidiaries which help it in leveraging its potential to the
maximum, providing an enhanced set of diversified services to its customers. These
subsidiaries include LIC International, LIC Nepal, LIC Lanka, LIC Housing Finance
and LIC Mutual Fund.

LIC INERNATIONAL
This is a joint venture offshore company promoted by LIC which commenced
operations in July, 1989 with the objectives of offering US$ denominated policies to
cater to the insurance needs of NRIs and providing insurance services to holders of
LIC policies currently residing in the Gulf. LIC International operates in all GCC
countries.

LIC NEPAL
A joint venture company formed in 2001 with the Vishal Group of Industries, Nepal.

LIC LANKA
A joint venture company formed in 2003 with the Bartleet Group of Companies, Sri
Lanka.

LIC HOUSING FINANCE LTD.

The Company is recognized by National Housing Bank and listed on the National
Stock Exchange (NSE) & Bombay Stock Exchange Limited (BSE). LIC Housing
Finance Ltd. is one of the largest Housing Finance Company in India. Incorporated
on 19th June 1989 under the Companies Act, 1956, the company was promoted by
LIC of India and went public in the year 1994. Its main objective is to provide long
term finance for construction or purchase of houses or apartments. It has a Dubai
office.

LIC MUTUL FUND LTD.

Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989 and
contributed Rs. 2 Crores towards the corpus of the Fund. LIC Mutual Fund was
constituted as a Trust in accordance with the provisions of the Indian Trust Act, 1882.
There are some other subsidiaries of LIC which are

1. LIC Mutual Fund Asset Management Company Ltd.

2. LIC HFL Care Homes Ltd.
3. LICHFL Asset Management Company Private Limited.
4. LICHFL Trustee Company Private Limited.
5. LICHFL Financial Services Limited, etc.

WHAT IS LIFE INSURANCE?

8

Life insurance is a contract that pledges payment of an amount to the person assured
(or his nominee) on the happening of the event insured against.
The contract is valid for payment of the insured amount during:

The date of maturity, or

Specified dates at periodic intervals, or

Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium
periodically to the Corporation by the policyholder. Life insurance is universally
acknowledged to be an institution, which eliminates 'risk', substituting certainty for
uncertainty and comes to the timely aid of the family in the unfortunate event of death
of the breadwinner.
By and large, life insurance is civilizations partial solution to the problems caused by
death. Life insurance, in short, is concerned with two hazards that stand across the
life-path of every person:

1. That of dying prematurely leaves a dependent family to fend for itself.

2. That of living till old age without visible means of support.

Life Insurance Vs. Other Savings

Contract of Insurance:
A contract of insurance is a contract of utmost good faith technically known as
uberrima fides. The doctrine of disclosing all material facts is embodied in this
important principle, which applies to all forms of insurance.
At the time of taking a policy, policyholder should ensure that all questions in the
proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud
in any document leading to the acceptance of the risk would render the insurance
contract null and void.

Protection:
Savings through life insurance guarantee full protection against risk of death of the
saver. Also, in case of demise, life insurance assures payment of the entire amount
assured (with bonuses wherever applicable) whereas in other savings schemes, only
the amount saved (with interest) is payable.

Aid to Thrift:
Life insurance encourages 'thrift'. It allows long-term savings since payments can be
made effortlessly because of the 'easy installment' facility built into the scheme.
(Premium payment for insurance is either monthly, quarterly, half yearly or yearly).
For example: The Salary Saving Scheme popularly known as SSS provides a
convenient method of paying premium each month by deduction from one's salary. In
this case the employer directly pays the deducted premium to LIC. The Salary Saving
Scheme is ideal for any institution or establishment subject to specified terms and
conditions.

Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy that
has acquired loan value. Besides, a life insurance policy is also generally accepted as
security, even for a commercial loan.

Tax Relief:
Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax.
This is available for amounts paid by way of premium for life insurance subject to
income tax rates in force.
Assesses can also avail of provisions in the law for tax relief. In such cases the
assured in effect pays a lower premium for insurance than otherwise.

Money When You Need It:

A policy that has a suitable insurance plan or a combination of different plans can be
effectively used to meet certain monetary needs that may arise from time-to-time.
Children's education, start-in-life or marriage provision or even periodical needs for
cash over a stretch of time can be less stressful with the help of these policies.
Alternatively, policy money can be made available at the time of one's retirement
10

from service and used for any specific purpose, such as, purchase of a house or for
other investments. Also, loans are granted to policyholders for house building or for
purchase of flats (subject to certain conditions).

Who Can Buy A Policy?

Any person who has attained majority and is eligible to enter into a valid contract can
insure himself/herself and those in whom he/she has insurable interest.
Policies can also be taken, subject to certain conditions, on the life of one's spouse or
children. While underwriting proposals, certain factors such as the policyholders
state of health, the proponent's income and other relevant factors are considered by
the Corporation.

Insurance For Women

Prior to nationalization (1956), many private insurance companies would offer
insurance to female lives with some extra premium or on restrictive conditions.
However, after nationalization of life insurance, the terms under which life insurance
is granted to female lives have been reviewed from time-to-time.
At present, women who work and earn an income are treated at par with men. In other
cases, a restrictive clause is imposed, only if the age of the female is up to 30 years
and if she does not have an income attracting Income Tax.

Medical And Non-Medical Schemes

Life insurance is normally offered after a medical examination of the life to be
assured. However, to facilitate greater spread of insurance and also to avoid
inconvenience, LIC has been extending insurance cover without any medical
examination, subject to certain conditions.

With Profit And Without Profit Plans

An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed,
if any, after periodical valuations are allotted to the policy and are payable along with
the contracted amount.
In 'without' profit plan the contracted amount is paid without any addition. The
11

premium rate charged for a 'with' profit policy is therefore higher than for a 'without'
profit policy.

Keyman Insurance
Keyman insurance is taken by a business firm on the life of key employee(s) to
protect the firm against financial losses, which may occur due to the premature
demise of the Keyman.

12

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.

13

MISSION/VISSION

MISSION
"Explore and enhance the quality of life of people through financial security by
providing products and services of aspired attributes with competitive returns, and by
rendering resources for economic development."

VISSION
"A trans-nationally competitive financial conglomerate of significance to societies
and Pride of India."

14

CHAPTER-3
RESEARCH METHODOLOGY
PURPOSE OF THE STUDY
The purpose behind the study of LIFE INSURANCE CORPORATION OF INDIA is
to understand the companies background as well as the nature of the various products
offered over many years in India. Purpose is to study the products and their benefits
to customers. This gives a brief idea of the nature of products of the company.

OBJECTIVES OF THE STUDY

The objectives behind the study of the plans and policies of LIFE INSURANCE
CORPORATION OF INDIA are:
1. To impart knowledge about the history and objectives of the company and also its
different subsidiaries.
2. To aware the readers about the different plans and policies provided by LIC, there
value and benefits to its customers.

CHAPTER-4
15

POLICIES (SCHEMES)
Life Insurance Corporation of India provides number of products to its costumers.
LIC differentiated their policies into five different types which are:
1. Insurance Plans
2. Pension Plans
3. Unit Plans
4. Special Plans
5. Group Scheme

PRODUCTS BY LIC
INSURANCE PLANS

1. Jeevan Anand
Features
Product summary:
This plan is a combination of Endowment Assurance and Whole Life plans. It
provides financial protection against death throughout the lifetime of the life assured
with the provision of payment of a lump sum at the end of the selected term in case of
his survival.
Premium:
Premiums are payable yearly, half-yearly, quarterly, monthly or through salary
deductions as opted by you throughout the selected term of the policy or till earlier
death.
Bonuses:
This is a with-profit plan and participates in the profits of the Corporations life
insurance business. It gets a share of the profits in the form of bonuses. Simple
Reversionary Bonuses are declared per thousand Sum Assured annually at the end of
each financial year. Once declared, they form part of the guaranteed benefits of the
plan. Bonuses will be added during the selected term or till death, if it occurs earlier.
Final (Additional) Bonus may also be payable provided the policy has run for certain
minimum period

Benefits
16

Benefits in case of death during the selected term:

The Sum Assured along with the vested bonuses is payable on death in a lump sum.
Benefits in case of survival to the end of selected term:
The Sum Assured along with the vested bonuses is payable in a lump sum on survival
to the end of the term. An additional Sum Assured is payable on death thereafter.
Accident Benefit:
An additional Sum Assured (subject to a limit of Rs.5 lakh) is payable in a lump sum
on death due to accident up to age 70 of life assured. In case of permanent disability
of the life assured due to accident this additional Sum assured is payable in
installments.
Supplementary/Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra
protection/option. An additional premium is required to be paid for these benefits.
Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender
values are available on the plan on earlier termination of the contract.
Guaranteed Surrender Value:
The policy may be surrendered after it has been in force for 3 years or more. The
guaranteed surrender value is 30% of the basic premiums paid excluding the first
years premium. Any extra premium(s) paid and premium(s) towards Accident
Benefit are also excluded.
Corporations policy on surrenders:
In practice, the Corporation will pay a Special Surrender Value which is either equal
to or more than the Guaranteed Surrender Value. The benefit payable on surrender
reflects the discounted value of the reduced claim amount that would be payable on
death or at maturity. This value will depend on the duration for which premiums have
been paid and the policy duration at the date of surrender. In some circumstances, in
case of early termination of the policy, the surrender value payable may be less than
the total premium paid.

17

PENSION PLANS
1. New Jeevan Dhara-I
Features
Product summary:
These are Deferred Annuity plans that allow the policyholder to make provision for
regular income after the selected term.
Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary
deduction, as opted by you, throughout the term of the policy or till earlier death.
Alternatively, the premium may be paid in one lump sum (single premium).
Tax Benefits:
Tax relief under Section 80ccc is available on premiums paid under New Jeevan
Suraksha I (Table No.147). The premiums paid under New Jeevan Dhara I (Table
No.148) qualify for tax relief under Section 88.
Bonuses:
These are with-profit plans and participate in the profits of the Corporations annuity /
pension business. Policies get a share of the profits in the form of bonuses. Simple
Reversionary Bonuses are declared per thousand Sum Assured annually at the end of
each financial year. Once declared, they form part of the guaranteed benefits of the
plan. Final (Additional) Bonuses may also be payable provided policy has run for a
certain minimum period.

Benefits
Death Benefit:
On death of the Life Assured during the term of the policy the basic premiums paid,
excluding any rider premiums or extra premiums, up to the date of death accumulated
with interest at such rates as decided by the Corporation will be payable to the
nominee. Currently, the interest rate is 3%, 4% or 5 % if the death occurs within the
first 10 years, 20 years or thereafter respectively.
Maturity Benefit:
At maturity the policyholder can encash up to a maximum 25% of the maturity
18

proceeds as a tax-free lump sum. The balance should be compulsorily converted to an

annuity at the rates applicable at the time of maturity of the policy. The policyholder
has the choice of opting for any one of 5 annuity options. The annuity options
available are:
(i) annuity payable for remainder of life
(ii) annuity payable for life with guaranteed period of 5, 10, 15 or 20 years
(iii) Joint life and last survivor annuity to the annuitant and his/ her spouse under
which annuity payable to the spouse on death of the purchaser will be 50% of that
payable to the annuitant
(iv) Life annuity with a return of purchase price on death of the annuitant
(v) Life annuity increasing at a simple rate of 3% per annum
Supplementary/Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra
protection/option. An additional premium is required to be paid for these benefits.
Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender
value is available on the plan on earlier termination of the contract.
Guaranteed Surrender Value:
The policy may be surrendered after it has been in force for 2 years or more but
before the vesting date. The guaranteed surrender value is 90% of the basic
premiums paid excluding the first years premium. In case of a single premium
policy the guaranteed surrender value is allowed after 2 years from the date of
commencement of the policy.
Corporations policy on surrenders:
In practice, the company will pay a Special Surrender Value which is equal to or
higher than the Guaranteed Surrender Value. The benefit payable on surrender reflects
the discounted value of the reduced claim amount that would be payable on death or
at maturity. This value will depend on the duration for which premiums have been
paid and the policy duration at the date of surrender. In some circumstances, in case
of early termination of the policy, the surrender value payable may be less than the
total premium paid.

19

UNIT PLANS-I
1. Market plus-I
This is a unit linked pension plan wherein the pension is payable after a specified
period. Four types of investment Funds namely Bond, Secured, Balanced and
Growth Fund are offered. Though primarily a Pension product, the plan has many
attractive features and options which make it an ideal Retirement solution for the
future.
BENEFITS
A) - On Vesting:
On vesting of the policy, the Fund Value will be utilized to provide a pension based
on the then prevailing Annuity rates. An option to commute up to one third of the
payable benefit in a lump sum is available.
B) On Death:
In event of the unfortunate death of the policy holder the Fund Value along with the
Riders, if any, will be payable in a lump sum or as a pension.
OPTIONS
Three attractive benefits, viz. - Life Cover, Accident Benefit and Critical Illness
Benefit are available as options or riders. Life option is available within certain limits
depending on the age at entry of the life assured. The other options are available to all
proposers who have opted for Life Cover. The quantum of the risk covers can also be
reduced; subject to the minimum limits, once a year. A policy can be taken without
any of the riders also.
REVIVAL
An attractive feature of the plan is that provided the premiums have been paid for a
minimum period of three years, all the riders under the policy will continue for a
period of two years from the due date of first unpaid premium by deduction of
relevant charges from the policy fund. This period of two years is called the Revival
Period. Further, if premiums have been paid for a minimum period of three years,
20

revival can be effected merely by paying the arrears of premium, within the Revival
Period.
PAYMENT OF PREMIUMS
Premiums can be paid in a lump sum (single premium) and also by monthly (ECS),
quarterly, half-yearly and yearly modes.
CHANGE IN FUND TYPE (SWITCH)
The plan also allows a policy holder to switch from one type of fund to another up to
four times a year, free of charge.
OTHER FEAUTRES
There will be no spread between the Bid and Offer price. The Net Asset Value (NAV)
will be declared on a daily basis. Additional premium in multiples of Rs.1,000 can be
paid without any limit at anytime during the term of policy.

21

SPECIAL PLANS
1. Bima Nivesh
Features
Bima Nivesh 2005 is a plan with compound rate of guaranteed additions and loyalty
additions. This is the revised version of our popular Bima Nivesh Plan 2004 and is
introduced to meet the overwhelming demand for a single premium plan from our
customers. It is a single premium, ideal investment plan for those who have no
regular income but good periodical income. Bima Nivesh 2005 is available for terms
5 and 10 years. The guaranteed surrender value is payable after the policy has run for
at least one year. Term Assurance Rider is also available by payment of a single
premium at the option of the proposer.

Benefits
Guaranteed Additions: Guaranteed additions at the compound rate of Rs.50 per
thousand Sum Assured per annum for the policy with term of 5 years and at the
compound rate of Rs.55 per thousand Sum Assured per annum for the policy with
term of 10 years.
Loyalty Addition: Depending upon the Corporation's experience with regard to
mortality, interest and expenses and based on term of the policy, Loyalty addition, if
any, may be declared by the corporation and paid on maturity.
Maturity Benefit: The Basic Sum Assured along with compounded Guaranteed
Additions will be payable. Loyalty addition, if any, will also be added to this benefit.
Payment on death: In case of the unfortunate death of the Life Assured during the
term of the policy, Sum Assured along with the accrued guaranteed additions will be
payable.
Surrender Value: Surrender value is payable after the policy has run at least for
one year.
Riders: Term Assurance rider is available.

22

Eligibility conditions and other restrictions

For the Main Plan

Term Assurance Option

Min. Age at entry

13 years completed

18 years completed

Max. Age at entry

70 years

50 years

Max. Maturity Age 75 years

60 years

Policy Term

Same as main plan

5 yrs. and 10 yrs

Min. Sum Assured - Rs.1,00,000/Max. Sum Assured - An amount

Rs.25,000.
Sum Assured

Maximum

up to the basic Sum Assured for

No

limit.

Term Assurance subject to a

maximum of Rs.25 lakh overall
Option limit, under all policies of
the life assured.

Premium Rates:
Single Premium rates for Rs.1000 Sum Assured are Rs.995 for 5 years term and Rs.
976 for 10 years term;
The Term Rider Premium depends on the age nearer birthday and the term of the
policy.
REBATES
1%

of

basic

premium

on

the

premium

in

excess

of

Rs.50,000.

Rs.500 plus 1.5% of basic premium on the premium in excess of Rs.1,00,000.

LOAN
Loan will be available to the policyholders under this plan within the Surrender
Value.

GROUP SCHEME
23

1. Janashree Bima Yojana (JBY)

Features
The objective of the scheme is to provide life insurance protection to the rural and
urban poor persons below poverty line and marginally above the poverty line.
ELIGIBILITY:
A person who is
*Aged between 18 and 59 years.
*Below or marginally above poverty line
*A member of any of the approved vocation/occupation groups
NODAL AGENCY:
A State Government Department which is concerned with the welfare of any such
vocation/occupation group, a Welfare Fund/ Society, Village Panchayat,NGO,SelfHelp Group,etc.
MINIMUM MEMBERSHIP SIZE:
Twenty five.
FORMS FOR JANASHREE BIMA YOJANA
1. Claim form & discharge receipt under JBY (Annexure A)
2. Application for scholarship under Shiksha Sahayog Yojana (Proforma A)
3. List of students eligible for scholarship under Shiksha Sahayog Yojana (Proforma
B)
4. Certificate of utilization ( Proforma C )

Benefits
In the events of
*Death (other than by accident) of the member, an amount of Rs.30,000/- is payable.
*death/total permanent disability, due to accident, an amount of Rs.75,000/-is
24

payable.
*Permanent partial disability, due to accident, an amount of Rs.37,500/- is payable.
PREMIUM:
*The premium under the scheme is Rs.200/-per annum per member. *50% of the
premium i.e. Rs.100/- will be contributed by the member and/or Nodal Agency/State
Government.

CHAPTER-5
FINDINGS
25

Findings: After completing the study following points can be drawn:

1. It has one of the single distribution networks amongst government insurance
players.
2. LIC has many numbers of insurance policies and plans having flexible to meet the
customers requirement and expectation.
3. LIC entered the market with aggressive marketing and supported by after sale
services with the help of technology.
4. All LIC Plans come with Sovereign Guarantee i.e., Government of India Guarantee
regarding repayment. Infact, as of now, only LIC plans enjoy this Government
Guarantee.

CHAPTER-6
CONCLUSION
After completing the project it is concluded that LIC develop its various plans and
policies, flexible in nature, according to the requirements of its targeted market or
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customers and is thus beneficial to its customers in various ways. The most important
benefit it provides to its customers is that it is a government owned company. This
lead to increase in the satisfaction level of its customer that is why LIC has more than
200 million policyholders which is equal to the fourth largest country in world.
Therefore it is not only beneficial but better than other insurance companies not only
regarding its product but also its services.

BIBLIOGRAPHY
Information and data used in the project has been collected from the
following sources:27

1. www.licindia.com
2. www.licmutual.com
3. www.lichousing.com
4. www.wikipedia.org

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