UNI

VERSI
TYOFMUMBAI

PROJECTREPORTON

COMPARATI
VESTUDYWI
THREFERENCETOPUBLI
CANDPRI
VATE
I
NSURANCECOMPANI
ES

Bachel
orofCommer
ce

(
Banki
ngandI
nsur
ance)

Semest
erVI

2017-
2018

SUBMI
TTEDBY

NI
SHANTVI
PULSHAH

PROJECTGUI
DE

Ms.LOVEENAATWAL

LALALAJPATRAICOLLEGE

MAHALAXMI
,MUMBAI-400034

Page1
COMPARATI
VESTUDYWI
THREFERENCETOPUBLI
CANDPRI
VATE
I
NSURANCECOMPANI
ES

Bachel
orofCommer
ce

(
Banki
ngandI
nsur
ance)

Semest
erVI

2017-
2018

Submi
tt
ed

I
nPar
ti
alFul
fi
ll
mentoft
heRequi
rement
s

ForTheAwar
dofDegr
eeofBachel
orofCommer
ce–

(
Banki
ngandI
nsur
ance)

SUBMI
TTEDBY

NI
SHANTVI
PULSHAH

LALALAJPATRAICOLLEGE

MAHALAXMI
,MUMBAI-400034

Page2
 ACKNOWLEDGEMENT:

Thepr
ojectCOMPARATI
VESTUDYWI
THREFERENCETOPUBLI
CANDPRI
VATE
I
NSURANCECOMPANI
ESi
sar
esul
tofco-
oper
ati
on,
har
dwor
k,andgoodwi
shes
ofmanypeopl
e.Ist
udentofLALALAJPATRAICOLLEGEOFCOMMERCEAND
ECONOMI
CSwoul
dli
ket
oThankt
hePr
inci
palandt
heVi
cePr
inci
palofmy
col
l
egef
orgi
vi
ngmet
hisoppor
tuni
tyt
omaket
hispr
oject
.

Iwoul
dli
ket
oThankMS.LOVEENAATWALf
orheri
nvol
vementi
nmypr
oject
wor
kandt
imel
yassessmentt
hatpr
ovi
dedmei
nspi
rat
ionandv
aluedgui
dance
t
hroughoutmyst
udy
.

Iowemydebtt
oPROF.VAI
DEHIKAMAT,
BBICour
seCoor
dinat
orf
orherf
ri
endl
y
gui
dance&const
antencour
agement
.

Ial
sot
aket
hisoppor
tuni
tyt
oexpr
essmysi
ncer
egr
ati
tudet
othel
i
brar
yst
aff
whi
chpr
ovi
dedmewi
tht
her
ighti
nfor
mat
ionandr
ightmat
eri
alatt
her
ightt
ime.

Lastbutnott
hel
east
,Iex
pressmydeepgr
ati
tudet
oal
lmycol
l
egef
ri
endsand
myf
ami
l
ymember
swhoseef
for
tandcr
eat
ivi
tyhashel
pedmei
ngi
vi
ngmet
he
f
inal
str
uct
uref
ort
hepr
ojectwor
k.

Page3
 DECLARATI
ON:

I
,MR.NI
SHANT V.SHAH,t
he st
udentofB.
Com-
Bachel
ori
n Banki
ng and
I
nsur
ance,VIsemest
er,(
2017-
2018)her
ebydecl
aret
hatIhav
ecompl
etet
he
pr
ojectonCOMPARATI
VESTUDYWI
THREFERENCETOPUBLI
CANDPRI
VATE
I
NSURANCECOMPANI
ES.If
urt
herdecl
aret
hatt
hei
nfor
mat
ioncont
ainedi
nthi
s
pr
ojectr
epor
tisgenui
ne,
trueandf
airt
obestofmyknowl
edge.

DATE _
___
___
___
___
__ NI
SHANTSHAH.

Page4
 CERTI
FICATE:

Thi
sist
ocer
ti
fyt
hatMR.NI
SHANTSHAHof(
B.com)Bachel
ori
nBanki
ngand
I
nsur
anceVIsemest
er2017-
2018hassuccessf
ull
ycompl
etet
hePr
ojecton
“
COMPARATI
VE STUDY WI
TH REFERENCE TO PUBLI
C AND PRI
VATE
I
NSURANCECOMPANI
ES”undert
heGui
danceofMS.SAMI
RASAYED

Cour
seCoor
dinat
or _
___
___
___
___
___
___
___
___

I
nter
nal
Exami
ner _
___
___
___
___
___
___
___
___

Ext
ernal
Exami
ner _
___
___
___
___
___
___
___
___

Pr
inci
pal _
___
___
___
___
___
___
___
___

Page5
COMPARATI
VESTUDYWITHREFERENCETOPUBLI
C
ANDPRI
VATEINSURANCECOMPANIES

Page6
 I
NDEX

SR CHAPTER CONTENTS PAGE

NO. NO. NO.
1. 1. I
NTRODUCTI
ON 3-
7

2. 2. CONCEPUTALFRAMEWORK. 8-
10

3. 3. PROFI
LEOFLI
C 11-
17

4. 4. PROFI
LE OF I
CICIPRUDENTI
AL I
NSURANCE 18-
27
COMPANY.

5. 5. PRODUCTS OF LI
C & I
CICI PRUDENTI
AL 28-
42
I
NSURANCECOMPANY
6. 6. TAXBENEFI
TS 43-
50
7. 7. SWOTANALYSI
S 51-
54
8. 8. CHANNELSOFDI
STRI
BUTI
ON 55-
59
9. CONCLUSI
ON 60
10. BI
BLI
OGRAPHY 61

Page7
 CHAPTER1
I
NTRODUCTI
ON
1.
1Int
roduct
ionofI
nsur
ance
I
nsur
ancei
sameansofpr
otect
ionf
rom f
inanci
all
oss.I
tisaf
orm ofr
isk
managementpr
imar
il
yusedt
ohedgeagai
nstt
her
iskofacont
ingent
,uncer
tai
n
l
oss.Anent
it
ywhi
chpr
ovi
desi
nsur
ancei
sknownasani
nsur
er,i
nsur
ance
company
,ori
nsur
ancecar
ri
er.Aper
sonorent
it
ywhobuy
sinsur
ancei
sknown
asani
nsur
edorpol
i
cyhol
der
.Thei
nsur
ancet
ransact
ioni
nvol
vest
hei
nsur
ed
assumi
ngaguar
ant
eedandknownr
elat
ivel
ysmal
ll
ossi
nthef
orm ofpay
mentt
o
t
hei
nsur
eri
nexchangef
ort
hei
nsur
er'
spr
omi
set
ocompensat
ethei
nsur
edi
n
t
heev
entofacov
eredl
oss.Thel
ossmayormaynotbef
inanci
al,
buti
tmustbe
r
educi
blet
ofi
nanci
alt
erms,andmusti
nvol
vesomet
hingi
nwhi
cht
hei
nsur
ed
hasani
nsur
abl
eint
erestest
abl
i
shedbyowner
shi
p,possessi
on,orpr
eexi
sti
ng
r
elat
ionshi
p.Thei
nsur
edr
ecei
vesacont
ract
,cal
l
edt
hei
nsur
ancepol
i
cy,whi
ch
det
ail
sthe condi
ti
ons and ci
rcumst
ances underwhi
ch t
he i
nsur
ed wi
l
lbe
f
inanci
all
ycompensat
ed.Theamountofmoneychar
gedbyt
hei
nsur
ert
othe
i
nsur
edf
ort
hecov
eragesetf
ort
hint
hei
nsur
ancepol
i
cyi
scal
l
edt
hepr
emi
um.I
f
t
hei
nsur
edexper
iencesal
osswhi
chi
spot
ent
ial
l
ycov
eredbyt
hei
nsur
ance
pol
i
cy,t
hei
nsur
edsubmi
tsacl
aimt
othei
nsur
erf
orpr
ocessi
ngbyacl
aims
adj
ust
er.

TheI
nsur
ancesect
orpl
aysav
ital
rol
eint
heeconomi
cdev
elopmentofournat
ion.
I
tact
sasamobi
l
iserofsav
ings,f
inanci
ali
nter
medi
ary
,pr
omot
erofi
nvest
ment
act
ivi
ti
es,
stabi
l
iseroff
inanci
almar
ket
sandar
iskmanager
.Indi
aisst
il
lanunder
-
insur
edcount
ryi
nthewor
ld.I
tisatt
he18t
hposi
ti
onamongLi
feI
nsur
ance
mar
ket
sand28t
hinNon-
Lif
eInsur
ancemar
ket
sint
hewor
ld.Thi
sindi
cat
est
hat
t
her
eisahugepot
ent
ial
,yett
obeexpl
ored.

Li
fei
nsur
ancei
saspeci
fi
cil
l
ust
rat
ionoft
hepr
ocessofnat
ional
i
zat
ionwher
e
non-i
deol
ogi
cal
,sect
ororact
ivi
ti
es–speci
fi
ccompul
sionswer
edeci
siv
e.I
twas
basedonanunannouncedqui
eti
nqui
ryspr
eadov
eranumberofy
ear
swhi
ch

Page8
showed t
hatnei
thera code ofconductnorl
egi
slat
ion coul
d make pr
ivat
e
i
nsur
ersoper
atet
opr
otectt
hei
nter
estoft
hepol
i
cyhol
der
s.Howev
ert
heLi
fe
I
nsur
anceActgav
ecl
earev
idenceoft
heabsenceofanydoct
ri
nai
rebi
asagai
nst
t
hepr
ivat
esect
or.I
nthecont
extoft
henewi
ndust
ri
alpol
i
cywhi
chwast
henon
t
heanv
il
,itwasessent
ialt
hatnat
ional
i
zat
ionofl
i
fei
nsur
ancedi
dnotgi
ve
cont
radi
ctor
ysi
gnal
sandt
il
tthepowerandi
deol
ogi
calbal
ancei
ntheI
ndi
an
economy

Ri
sk-
tr
ansf
er 
mechani
sm 
thatensur
esf
ullorpar
ti
al 
fi
nanci
al 
compensat
ionf
or
t
he 
l
oss 
or 
damage 
causedbyev
ent
(s)bey
ondt
he 
cont
rol
 
oft
he 
i
nsur
ed 
par
ty.
Underani
nsur
ance 
cont
ract
,apar
ty(
the 
i
nsur
er)
 i
ndemni
fi
es 
theot
herpar
ty(
the
i
nsur
ed) agai
nst a speci
fi
ed 
amount
 of l
oss, occur
ri
ng f
rom speci
fi
ed
ev
ent
ual
i
ties wi
thi
n a speci
fi
ed 
per
iod,pr
ovi
ded a 
fee 
cal
l
ed 
premi
um 
i
s pai
d.
I
n gener
al 
i
nsur
ance,
compensat
ioni
snor
mal
l
ypr
opor
ti
onat
etot
hel
oss 
i
ncur
red,
wher
easi
n l
i
fei
nsur
ance 
usual
l
yaf
ixed 
sum 
i
spai
d

Li
fei
nsur
ancepr
oduct
sandt
hemar
ket
smayseem compl
etel
ydi
ff
erentf
oreach
count
ry.Theyar
eundert
hei
nfl
uenceoft
hei
rsy
stem f
act
ors,suchassoci
al
secur
it
ysy
stem andr
egul
ati
onsofi
nsur
erpr
act
ices,aswel
last
hei
rsoci
aland
economi
cfact
ors,suchast
heeconomi
cdev
elopmentst
age,si
zeofi
ndi
vi
dual
f
inanci
alasset
s,l
evelofcompet
it
ionamongf
inanci
ali
nst
it
uti
ons,
andpopul
ati
on
composi
ti
onbyage.Ev
enso,t
hei
nsur
ancemar
ket
sint
hewor
ldmusthav
e
someki
ndofcommonf
act
ors,becauset
heessent
ialofi
nsur
ancel
i
esi
nri
sk
av
ersi
onandt
hati
sauni
ver
saldesi
reamongal
lpeopl
e.I
nthi
sresear
chpaper
,I
connectt
heseemi
ngl
ydi
ff
erentl
i
fei
nsur
ancemar
ket
sineachcount
rybyusi
nga
conceptcal
l
edt
he"
Faceamountr
ati
o"(
her
einaf
tercal
l
edt
he"
FAr
ati
o")
,af
ter
compar
ingt
hedeat
hbenef
itacqui
redf
rom per
sonali
nsur
ance,
inor
dert
ocl
ari
fy
t
hel
i
nkageandcommonf
act
orsoft
hel
i
fei
nsur
ancemar
ket
swor
ldwi
de.TheFA
r
ati
oisav
erysi
mpl
eindexwhi
chi
sobt
ainedbydi
vi
dingt
heper
sonali
nsur
ance
amounti
neachcount
rybyt
henomi
nalGDP,buti
soneoft
hei
nter
nat
ional
"
const
rai
nts"on t
he l
i
fei
nsur
ance mar
ket
sbywhi
ch mar
ketst
ruct
uresar
e
det
ermi
nedaccor
dingt
othechangeofl
ong-
ter
mint
erestr
atesandt
hesal
es

Page9
st
rat
egyofsuppl
i
ers(
i.
e.i
nsur
ers)whout
il
izesuchchange.I
naddi
ti
on,t
he
mar
ketst
ruct
urei
nacount
ryandt
hef
utur
eexpansi
oncanbel
ear
nedf
rom
st
ruct
uresoft
heot
hercount
ri
es'
FAr
ati
osi
ncer
tai
nper
iods.Andt
heFAr
ati
ois
ef
fect
ivet
oindi
cat
ethecommonf
act
orsamongt
hel
i
fei
nsur
ancemar
ket
sin
eachcount
ryaswel
last
onot
if
yusofchangesi
nthemar
ket
s.Lar
gedev
iat
ionof
t
hisi
ndexmeans t
hatt
he i
nsur
ers'st
rat
egyachi
eved an ov
erl
ysuccessf
ul
out
come,whi
chi
mpl
i
esaphasewher
ether
iskcont
roli
sinsuf
fi
cientasseeni
n
Japan.Conf
usi
oncoul
doccuri
napr
ocessi
nwhi
cht
heact
ualv
aluesi
nev
itabl
y
getcl
osert
otheor
eti
calv
aluesi
nsuchl
argedev
iat
ion.Si
ncel
argerdev
iat
ion
r
esul
tsi
nlar
geradj
ust
ment
,ri
skcont
rolshoul
dber
einf
orcedi
nthephase.FA
r
ati
ospl
ayani
mpor
tantr
olei
nmanagi
ngorsuper
visi
ngt
hesoundnessofl
i
fe
i
nsur
ancecompani
es.

ConceptofI
nsur
ance

Li
fe hasal
way
sbeen an uncer
tai
nthi
ng.To be secur
e agai
nstunpl
easant
possi
bil
i
ties,al
way
srequi
rest
heut
mostr
esour
cef
ulnessandf
oresi
ghtont
he
par
tofman.Topr
ayort
opayf
orpr
otect
ioni
sthespi
ri
toft
hehumani
ty.Man
has been accust
omed t
o pr
ay God f
orpr
otect
ion and secur
it
yfr
om t
ime
i
mmemor
ial
.In moder
n day
sInsur
ance Compani
es wanthi
m t
o pay f
or
pr
otect
ionandsecur
it
y.Thei
nsur
ancemansay
s"Godhel
pst
hosewhohel
p
t
hemsel
ves"
;pr
obabl
yhei
scor
rect
.Toomanypeopl
eint
hiscount
ryar
enoti
n
empl
oyment
;andwor
kfort
oo manyno l
ongerguar
ant
eesi
ncomesecur
it
y.
Sev
eralmi
l
li
ons ar
e par
t-
ti
me,sel
f-
empl
oyed and l
ow-
ear
ning wor
ker
sli
vi
ng
underpi
ti
abl
e ci
rcumst
anceswher
ether
eisno secur
it
ycov
eragai
nstr
isk.
Fur
thert
he i
nher
entchangi
ng empl
oymentr
isks,t
he pr
ospectof
 cont
inual
changei
nthewor
kpl
acewi
thi
tsat
tendantt
hreat
sofunempl
oymentandl
owpay
especi
all
yaf
tert
headopt
ionofNewEconomi
cPol
i
cyandt
hei
mmi
nentl
i
fecy
cle
r
isks-anewsour
ceofi
nsecur
it
ywhi
chi
ncl
udest
hechangi
ngdemandsof
 f
ami
l
y
l
i
fe,separ
ati
on,di
vor
ceandel
der
lydependent
sar
etor
ment
ingt
hesoci
ety
.Ri
sk
hasbecomecent
ralt
oone'
sli
fe.I
tiswi
thi
nthi
sbackgr
oundl
i
fei
nsur
ancepol
i
cy

Page10
hasbeeni
ntr
oducedbyt
hei
nsur
ancecompani
escov
eri
ngr
isksatv
ari
ousl
evel
s.
Li
fei
nsur
ancecov
eragei
sagai
nstdi
sabl
ementori
ntheev
entofdeat
hoft
he
i
nsur
ed,economi
csuppor
tfort
hedependent
s.I
tisameasur
eofsoci
alsecur
it
y
t
oli
vel
i
hoodf
ort
hei
nsur
edordependent
s.Thi
sist
omaket
her
ightt
oli
fe
meani
ngf
ul,wor
thl
i
ving and r
ightt
oli
vel
i
hood a means f
orsust
enance.
Ther
efor
e,i
tgoeswi
thoutsay
ingt
hatanappr
opr
iat
eli
fei
nsur
ancepol
i
cywi
thi
n
t
hepay
ingcapaci
tyandmeansoft
hei
nsur
edt
opaypr
emi
um i
soneoft
hesoci
al
secur
it
ymeasur
esenv
isagedundert
heI
ndi
anConst
it
uti
on.Hence,
rightt
osoci
al
secur
it
y,pr
otect
ion oft
hef
ami
l
y,economi
cempower
mentt
othepoorand
di
sadv
ant
agedar
eint
egr
alpar
toft
her
ightt
oli
feanddi
gni
tyoft
heper
son
guar
ant
eedi
ntheconst
it
uti
on.
Manf
indshi
ssecur
it
yini
ncome(
money
)whi
ch
enabl
eshi
mtobuyf
ood,cl
othi
ng,shel
terandot
hernecessi
ti
esofl
i
fe.Aper
son
hast
oear
nincomenotonl
yforhi
msel
f 
butal
sof
orhi
sdependent
s,v
iz.
,wi
feand
chi
l
dren.Hehast
opr
ovi
del
egal
l
yforhi
sfami
l
yneeds,andsohehast
okeep
asi
desomet
hingr
egul
arl
yforar
ainydayandf
orhi
sol
dage.Thi
sfundament
al
needf
orsecur
it
yforsel
fanddependent
spr
ovedt
obet
hemot
herofi
nvent
ionof
t
hei
nst
it
uti
onofl
i
fei
nsur
ance.

1.
2Obj
ect
ivesoft
heSt
udy

 Tost
udyaboutt
heLI
CandI
CICIPr
udent
ial
Insur
ancecompany
.

 Tost
udyaboutt
hev
ari
ouspr
oduct
soft
hecompani
es.

 Tost
udyaboutt
het
axbenef
it
stopol
i
cyhol
der
s.

 Tost
udyaboutt
heSWOTanal
ysi
soft
hecompani
es.

 Tost
udyaboutt
hechannel
sofdi
str
ibut
ionoft
hecompani
es.

Page11
1.
3Resear
chMet
hodol
ogy

I
nthepr
esentst
udyt
hedat
ahasbeencol
l
ect
edf
rom t
hesecondar
ysour
ces
r
efer
ri
ngt
ovar
iousbooks,
jour
nal
s,newspaper
s,magazi
nes,
presscl
i
ppi
ngs,
etc.

Thepr
esenti
nvest
igat
ioni
sadescr
ipt
ivet
ypeofst
udyunder
takent
oest
imat
e
t
hecompar
ati
vest
udybet
weenL.
I.
CandBi
rl
aSunLi
feI
nsur
ancecompany
.For
t
hepur
poseofanal
ysi
sasampl
esi
zeof2di
ff
erentcompani
eswer
esel
ect
ed.

1.
4Concl
usi
on

Thef
inanci
almar
ket
shav
econt
inuedt
owi
tnessunpr
ecedent
edl
i
ber
ali
zat
ion,
gr
owt
handr
efor
msov
ert
hel
astdecadepr
ompt
edbyr
egul
ator
ycompul
sions
andar
api
dint
egr
ati
onbet
weendomest
icandgl
obalmar
ket
s.Andasar
esul
t,
onehasseensubst
ant
ialgr
owt
hint
henumberoff
inanci
alf
ir
ms(
insur
ance
compani
es,mut
ualf
unds,
 
broker
ages,bankset
c.)andi
nthenumberandv
ari
ety
off
inanci
alpr
oduct
sandser
vicesof
fer
edbyt
hem.Ast
heneedoft
hepeopl
eis
changi
ng so i
schangi
ng t
hei
nvest
menthabi
tsoft
hepeopl
eand t
hishas
br
oughti
naspat
eofnewpr
oduct
sandschemeswher
e peopl
ecani
nvest
.The
conceptofi
nsur
anceasani
nvest
mentopt
ionhasar
ri
vedwher
e peopl
efi
rst
i
dent
if
ythev
ary
ingneedsofmoneyt
henconv
ert
stheneedsi
ntospeci
fi
camount
ofmoneyandt
imer
equi
redt
oachi
evet
heobj
ect
iveofi
nvest
ment
spl
ans.The
obj
ect
iveofi
nsur
anceasani
nvest
menti
stoensur
ethati
nvest
ment
sar
edr
iven
bypr
edet
ermi
nedandwel
lthoughtouti
nvest
mentpl
anandt
hatt
hei
nvest
ment
s
ar
esui
tabl
eandadequat
etomeett
hesepl
ans.Butf
ort
hist
hepl
annermust
under
standt
heuni
ver
seofi
nvest
ment
sopt
ions.He/
shemustbewel
linf
ormed
ont
her
iskandr
etur
nat
tri
but
esoft
heseopt
ions.

I
nsur
ancei
sa l
argei
nvest
mentand y
ou wi
l
lmostl
i
kel
ypur
chasemul
ti
ple

Page12
pol
i
ciest
hroughouty
ourl
i
fet
ime.I
tisessent
ialt
haty
ouknowwhateacht
ypeof
i
nsur
ancecov
ersandhow i
twor
kssoy
oucanmaket
hebestdeci
sionabout
whatt
obuy
.Donotbasey
ourdeci
siononj
ustwhati
scheapest
,butl
ookatwhat
i
tpr
ovi
des.

Taket
het
imet
oshopar
oundandf
indt
her
ighti
nsur
ancef
ory
oursi
tuat
ion.
Peopl
eof
tensayt
heycannotaf
for
dinsur
ance,butt
her
eal
i
tyi
sthatt
heycannot
af
for
d nott
o hav
eit
.Itcansav
ethem f
rom t
housandsormor
edol
l
arsi
n
unpl
annedexpenseswhenunexpect
edsi
tuat
ionsar
ise.Youdo notwantt
o
wast
eyourmoneyon pol
i
cies t
hatdo notmeety
ourneeds,butt
he r
ight
i
nsur
ancepol
i
cycanpr
otecty
ouandy
ourf
ami
l
yfr
om unf
oreseendi
sast
ers.

CHAPTER2

CONCEPTUALFRAMEWORK
Aconcept
ual
framewor
kisananal
yti
cal
tool
wit
hsev
eral
var
iat
ionsandcont
ext
s.
I
tisusedt
omakeconcept
ualdi
sti
nct
ionsandor
gani
zei
deas.St
rongconcept
ual
f
ramewor
ks capt
ure somet
hing r
ealand do t
hisi
n a wayt
hati
s easyt
o
r
ememberand appl
y.I
sai
ah Ber
li
n used t
he met
aphorofa “
Fox”and a
“
Hedgehog”t
omakeconcept
ualdi
sti
nct
ionsi
nhowi
mpor
tantphi
l
osopher
sand
[
1]
aut
hor
svi
ewt
hewor
ld. Ber
li
ndescr
ibeshedgehogsast
hosewhouseasi
ngl
e
i
deaoror
gani
zi
ngpr
inci
plet
ovi
ew t
hewor
ld(
exampl
esgi
veni
ncl
udeDant
e,
Pascal
,Dost
oev
sky
,Pl
ato,I
bsen and Hegel
).Foxes,on t
he ot
herhand,
i
ncor
por
ateat
ypeofpl
ural
i
sm andv
iewt
hewor
ldt
hroughmul
ti
ple,somet
imes
conf
li
cti
ng,l
enses (
exampl
es i
ncl
ude Goet
he,Joy
ce,Shakespear
e,Ar
ist
otl
e,
Her
odot
us, Mol
i
ère, Ander
son, Bal
zac)
. Economi
sts use t
he concept
ual
f
ramewor
kof“
suppl
y”and“
demand”t
odi
sti
ngui
shbet
weent
hebehav
iorand
i
ncent
ivesy
stemsoff
ir
msandconsumer
s.Li
kemanyconcept
ualf
ramewor
ks,
suppl
yanddemandcanbepr
esent
edt
hroughv
isual
orgr
aphi
cal
repr
esent
ati
ons

Page13
2.
1Insur
ance

I
nsur
ancei
sameansofpr
otect
ionf
rom f
inanci
all
oss.I
tisaf
orm ofr
isk
managementpr
imar
il
yusedt
ohedgeagai
nstt
her
iskofacont
ingent
,uncer
tai
n
l
oss.
An ent
it
ywhi
ch pr
ovi
des i
nsur
ance i
s known as an i
nsur
er,i
nsur
ance
company
,ori
nsur
ancecar
ri
er.Aper
sonorent
it
ywhobuy
sinsur
ancei
sknown
asani
nsur
edorpol
i
cyhol
der
.Thei
nsur
ancet
ransact
ioni
nvol
vest
hei
nsur
ed
assumi
ngaguar
ant
eedandknownr
elat
ivel
ysmal
ll
ossi
nthef
orm ofpay
mentt
o
t
hei
nsur
eri
nexchangef
ort
hei
nsur
er'
spr
omi
set
ocompensat
ethei
nsur
edi
n
t
heev
entofacov
eredl
oss.Thel
ossmayormaynotbef
inanci
al,
buti
tmustbe
r
educi
blet
ofi
nanci
alt
erms,andmusti
nvol
vesomet
hingi
nwhi
cht
hei
nsur
ed
hasani
nsur
abl
eint
erestest
abl
i
shedbyowner
shi
p,possessi
on,orpr
eexi
sti
ng
r
elat
ionshi
p.Thei
nsur
edr
ecei
vesacont
ract
,cal
l
edt
hei
nsur
ancepol
i
cy,whi
ch
det
ail
sthe condi
ti
ons and ci
rcumst
ances underwhi
ch t
he i
nsur
ed wi
l
lbe
f
inanci
all
ycompensat
ed.Theamountofmoneychar
gedbyt
hei
nsur
ert
othe
i
nsur
edf
ort
hecov
eragesetf
ort
hint
hei
nsur
ancepol
i
cyi
scal
l
edt
hepr
emi
um.

2.
2Doubl
eInsur
ance

Doubl
einsur
ancei
sat
ypeofi
nsur
ancewher
ethesamesubj
ectmat
teri
sinsur
ed
mor
ethanonce.I
nsuchcasest
hesamesubj
ecti
sinsur
ed,butwi
thdi
ff
erent
i
nsur
ers.Themet
hodofdoubl
einsur
ancei
sconsi
der
edal
egalact
.Incaseof
l
osst
hei
nsur
edcancl
aimf
rom bot
hthei
nsur
ersandt
hei
nsur
ersar
eli
abl
eto
payundert
hei
rrespect
ivepol
i
cies.

I
NSURANCE,cont
ract
s.Wher
ethei
nsur
edmakes,t
woi
nsur
ancesont
hesame
r
isk,andt
hesamei
nter
est
.Itdi
ff
ersf
rom r
e-i
nsur
ancei
nthi
s,t
hati
tismadeby
t
hei
nsur
ed,wi
thav
iew ofr
ecei
vi
ng adoubl
esat
isf
act
ioni
ncaseofl
oss;
wher
easar
e-i
nsur
ancei
smadebyaf
ormeri
nsur
er,hi
sexecut
orsorassi
gns,t
o
pr
otecthi
msel
fandhi
sest
atef
rom ar
iskt
owhi
cht
heywer
eli
abl
ebyt
hef
ir
st
i
nsur
ance.Thet
wopol
i
ciesar
econsi
der
edasmaki
ngbutonei
nsur
ance.

Page14
2.
3Bancassur
ance

Thebanki
nsur
ancemodel(
BIM)
,al
sosomet
imesknownasbancassur
anceor
al
l
finanz,i
sthepar
tner
shi
porr
elat
ionshi
pbet
weenabankandani
nsur
ance
company
,orasi
ngl
eint
egr
atedor
gani
zat
ion,wher
ebyt
hei
nsur
ancecompany
usest
hebanksal
eschanneli
nor
dert
osel
linsur
ancepr
oduct
s,anar
rangement
i
nwhi
chabankandani
nsur
ancecompanyf
orm apar
tner
shi
psot
hatt
he
i
nsur
ancecompanycansel
li
tspr
oduct
stot
hebank'
scl
i
entbase.BI
M al
l
owst
he
i
nsur
ancecompanyt
omai
ntai
nsmal
l
erdi
rectsal
est
eamsast
hei
rpr
oduct
sar
e
sol
dthr
ought
hebankt
obankcust
omer
sbybankst
affandempl
oyeesaswel
l
.
Bankst
affandt
ell
ers,
rat
hert
hanani
nsur
ancesal
esper
son,
becomet
hepoi
ntof
sal
eandpoi
ntofcont
actf
ort
hecust
omer
.Thebankandt
hei
nsur
ancecompany
shar
ethecommi
ssi
on.I
nsur
ancepol
i
ciesar
epr
ocessedandadmi
nist
eredbyt
he
i
nsur
ancecompany
.Thi
spar
tner
shi
par
rangementcanbepr
ofi
tabl
eforbot
h
compani
es.Bankscanear
naddi
ti
onalr
evenuebysel
l
ingt
hei
nsur
ancepr
oduct
s,
whi
l
einsur
ancecompani
esar
eabl
eto expandt
hei
rcust
omerbasewi
thout
hav
ingt
oexpandt
hei
rsal
esf
orcesorpaycommi
ssi
onst
oinsur
anceagent
sor
br
oker
s.

2.
4Rei
nsur
ance

Rei
nsur
ance i
sinsur
ance t
hati
s pur
chased byan i
nsur
ance company(
the
"
cedi
ngcompany
"or"
cedent
"or"
cedant
"undert
hear
rangement
)fr
om oneor
mor
eot
heri
nsur
ancecompani
es(
the"
rei
nsur
er"
)di
rect
lyort
hroughabr
okeras
ameansofr
iskmanagement
,somet
imesi
npr
act
icei
ncl
udi
ngt
axmi
ti
gat
ionand
ot
herr
easonsdescr
ibedbel
ow.Thecedi
ngcompanyandt
her
einsur
erent
eri
nto
ar
einsur
anceagr
eementwhi
chdet
ail
sthecondi
ti
onsuponwhi
cht
her
einsur
er
woul
dpayashar
eoft
hecl
aimsi
ncur
redbyt
hecedi
ngcompany
.Ther
einsur
eri
s
pai
da"
rei
nsur
ancepr
emi
um"byt
hecedi
ngcompany
,whi
chi
ssuesi
nsur
ance
pol
i
cies t
oit
s own pol
i
cyhol
der
s.The r
einsur
ermaybe ei
thera speci
ali
st
r
einsur
ancecompany
,whi
chonl
yunder
takesr
einsur
ancebusi
ness,oranot
her

Page15
i
nsur
ance company
.Insur
ance compani
est
hatsel
lrei
nsur
ance r
efert
othe
busi
nessas'
assumedr
einsur
ance'
.A heal
thyr
einsur
ancemar
ket
placehel
ps
ensur
ethati
nsur
ance compani
es can r
emai
n sol
vent(
fi
nanci
all
yvi
abl
e),
par
ti
cul
arl
yaf
teramaj
ordi
sast
ersuchasamaj
orhur
ri
cane,becauset
her
isks
andcost
sar
espr
ead.

2.
5Assur
ance

Thepl
ansofi
nsur
ancet
hatpr
ovi
desonl
ydeat
hcov
erf
oraspeci
fi
cter
m ar
e
cal
l
edTer
m assur
ance.
96Youcansel
ectt
het
ermf
orwhi
chy
ouwoul
dli
ket
he
cov
erage;upt
o35y
ear
s.Pay
ment
sar
efi
xedanddonoti
ncr
easedur
ingy
our
t
erm per
iod.I
ncaseofanunt
imel
ydeat
h,y
ourdependant
swi
l
lrecei
vet
he
benef
itamountspeci
fi
edi
nthepol
i
cy.Onecanal
socust
omi
zet
ermi
nsur
ance
wi
tht
he addi
ti
onalr
ider
s,such as chi
l
dren benef
it
,wai
verofpr
emi
um or
acci
dent
aldeat
hbenef
it
.97Thewhol
eli
fepl
ani
sal
ongt
erm‘
Ter
m Assur
ance’
.

CHAPTER3

PROFI
LEOFLI
C

3.
1Int
roduct
ion

Li
feI
nsur
ance Cor
por
ati
on (
Indi
a) 
(LI
C) i
s an I
ndi
an 
stat
e-owned 
i
nsur
ance
gr
oup 
and 
i
nvest
mentcompany
 headquar
ter
ed i
n Mumbai
.Iti
sthe l
argest
i
nsur
ance company i
n I
ndi
a wi
th an est
imat
ed asset v
alue
of
 1560482 
cror
e (
US$230 
bil
l
ion)
. 
As of 2013 i
t had t
otal l
i
fe f
und of
Rs.
1433103.
14cr
orewi
tht
otal
val
ueofpol
i
ciessol
dof367.
82l
akht
haty
ear
.

Page16
The Li
fe I
nsur
ance Cor
por
ati
on of I
ndi
a was f
ounded i
n 1956 when
t
he 
Par
li
amentofI
ndi
a passedt
heLi
feI
nsur
anceofI
ndi
aActt
hatnat
ional
i
sed
t
he pr
ivat
einsur
ance i
ndust
ryi
nIndi
a.Ov
er245 i
nsur
ance compani
es and
pr
ovi
dentsoci
eti
es wer
e mer
ged t
o cr
eat
ethe st
ate owned Li
feI
nsur
ance
Cor
por
ati
on.

Li
fe I
nsur
ance Cor
por
ati
on of I
ndi
a (
LIC) i
s t
he l
argest
 i
nsur
ance
gr
oup 
and 
i
nvest
mentcompanyi
nIndi
a.I
t’
sast
ate-
ownedwher
e Gov
ernmentof
I
ndi
a has100%st
ake.LI
Cal
sof
undscl
oset
o24.
6%oft
heI
ndi
anGov
ernment
's
expenses.I
thasasset
sest
imat
edof
 13.
25t
ri
ll
i
on(
US$250.
43bi
l
li
on)
. 
Itwas
f
oundedi
n1956wi
tht
hemer
gerof243i
nsur
ancecompani
esandpr
ovi
dent
soci
eti
es.

Headquar
ter
edi
n Mumbai
,fi
nanci
alandcommer
cialcapi
talofI
ndi
a,t
heLi
fe
I
nsur
anceCor
por
ati
onofI
ndi
acur
rent
lyhas8zonalOf
fi
cesand113di
vi
sional
of
fi
cesl
ocat
edi
ndi
ff
erentpar
tsofI
ndi
a,ar
ound3500ser
vici
ngof
fi
cesi
ncl
udi
ng
2048br
anches,54Cust
omerZones,25Met
roAr
eaSer
viceHubsandanumber
ofSat
ell
i
teOf
fi
cesl
ocat
edi
ndi
ff
erentci
ti
esandt
ownsofI
ndi
aandhasa
net
wor
kof13,
37,
064i
ndi
vi
dual
agent
s,242Cor
por
ateAgent
s,79Ref
err
alAgent
s,
98Br
oker
sand42Banks(
ason31.
3.2011)f
orsol
i
cit
ingl
i
fei
nsur
ancebusi
ness
f
rom t
hepubl
i
c.

3.
2Hi
stor
y

LI
CZonal
Off
ice,
NightVi
ewFr
om ConnaughtPl
acePar
k

Foundi
ngOr
gani
zat
ion

TheOr
ient
alLi
feI
nsur
anceCompany
,thef
ir
stcompanyi
nIndi
aof
fer
ingl
i
fe
i
nsur
ancecov
erage,wasest
abl
i
shedi
n Cal
cut
ta 
i
n1818byAni
taBhav
sarand
ot
her
s.I
tspr
imar
ytar
getmar
ketwast
heEur
opeansbased i
nIndi
a,and i
t
char
gedI
ndi
anshef
ti
erpr
emi
ums.Sur
endr
anat
hTagor
e(sonof
 Sat
yendr
anat
h

Page17
 Tagor
e)hadf
oundedHi
ndust
hanI
nsur
anceSoci
ety
,whi
chl
aterbecameLi
fe
I
nsur
anceCor
por
ati
on.

TheBombayMut
ualLi
feAssur
anceSoci
ety
,for
medi
n1870,wast
hef
ir
stnat
ive
i
nsur
ance pr
ovi
der
. Ot
her i
nsur
ance compani
es est
abl
i
shed i
n t
he pr
e-
i
ndependenceer
aincl
uded

 Post
alLi
feI
nsur
ance(
PLI
)wasi
ntr
oducedon1Febr
uar
y1884

 Bhar
atI
nsur
anceCompany(
1896)

 Uni
tedI
ndi
a(1906)

 Nat
ional
Indi
an(
1906)

 Nat
ional
Insur
ance(
1906)

 Co-
oper
ati
veAssur
ance(
1906)

 Hi
ndust
anCo-
oper
ati
ves(
1907)

 I
ndi
anMer
cant
il
e

 Gener
alAssur
ance

 Swadeshi
Lif
e(l
aterBombayLi
fe)

 Sahy
adr
iInsur
ance(
Mer
gedi
ntoLI
C,1986)

Thef
ir
st150y
ear
swer
emar
kedmost
lybyt
urbul
enteconomi
ccondi
ti
ons.I
t
wi
tnessed,
 
Indi
a'
sFi
rstWarofI
ndependence,adv
erseef
fect
soft
he 
Wor
ldWar
I
 and 
Wor
ldWarI
I 
ont
he 
economyofI
ndi
a,andi
nbet
weent
hem t
heper
iodof
wor
ldwi
deeconomi
ccr
isest
ri
gger
edbyt
he 
Greatdepr
essi
on.Thef
ir
sthal
fof
t
he20t
hcent
uryal
sosaw ahei
ght
enedst
ruggl
efor
 I
ndi
a'
sindependence.The
aggr
egat
eef
fectoft
heseev
ent
sledt
oahi
ghr
ateofandl
i
qui
dat
ion 
ofl
i
fe
i
nsur
ancecompani
esi
nIndi
a.Thi
shadadv
ersel
yaf
fect
edt
hef
ait
hoft
hegener
al
publ
i
cint
heut
il
it
yofobt
aini
ngl
i
fecov
er.

Nat
ional
i
zat
ioni
n1956

Page18
I
n1955,par
li
ament
ari
an 
AmolBar
ate 
rai
sedt
hemat
terofi
nsur
ancef
raudby
owner
sofpr
ivat
einsur
anceagenci
es.I
ntheensui
ng i
nvest
igat
ions,oneof
I
ndi
a'
s weal
thi
estbusi
nessmen,Ramkr
ishna Dal
mia,owneroft
he 
Times of
I
ndi
a newspaper
,wassentt
opr
isonf
ort
woy
ear
s.

Ev
ent
ual
l
y,t
he 
Par
li
amentofI
ndi
a passedt
heLi
feI
nsur
anceofI
ndi
aActonJune
19,
1956cr
eat
ingt
heLi
feI
nsur
anceCor
por
ati
onofI
ndi
a,whi
chst
art
edoper
ati
ng
i
nSept
emberoft
haty
ear
.Itconsol
i
dat
edt
hel
i
fei
nsur
ancebusi
nessof245
pr
ivat
eli
fei
nsur
ers and ot
herent
it
ies of
fer
ing l
i
fei
nsur
ance ser
vices,t
his
consi
sted of154 l
i
fei
nsur
ance compani
es,16 f
orei
gn compani
es and 75
pr
ovi
dentcompani
es.Thenat
ional
i
sat
ionoft
hel
i
fei
nsur
ancebusi
nessi
nIndi
a
wasar
esul
toft
he 
Indust
ri
alPol
i
cyResol
uti
onof1956,whi
chhadcr
eat
eda
pol
i
cyf
ramewor
kforext
endi
ngst
atecont
rolov
eratl
eastsev
ent
eensect
orsof
t
heeconomy
,incl
udi
ngl
i
fei
nsur
ance.

Gr
owt
hasaMonopol
y

Fr
om i
tscr
eat
ion,t
heLi
feI
nsur
anceCor
por
ati
onofI
ndi
a,whi
chcommanded
a 
monopol
y 
ofsol
i
cit
ing and sel
l
ing l
i
fei
nsur
ance i
nIndi
a,cr
eat
ed huge
sur
pluses,
andby2006wascont
ri
but
ingar
ound7%ofI
ndi
a'
s 
GDP.

TheCor
por
ati
on,whi
chst
art
edi
tsbusi
nesswi
thar
ound300of
fi
ces,5.
7mi
l
li
on
pol
i
cies and a 
cor
pus 
ofI
NR 45.
9 cr
ores (
US$92 mi
l
li
on as pert
he 1959
exchanger
ateofr
oughl
y 
5forUS$1)
,hadgr
ownt
o25,
000ser
vici
ngar
ound350
mi
l
li
onpol
i
ciesanda 
cor
pus 
ofov
er800000 
cror
e (
US$120 
bil
l
ion)byt
heendof
t
he20t
hcent
ury
.

Li
ber
ali
sat
ionpost2000’
s

I
nAugust2000,t
he 
Indi
anGov
ernment
 embar
kedonapr
ogr
am t
oli
ber
ali
set
he
I
nsur
anceSect
orandopenedi
tupf
ort
hepr
ivat
esect
or.I
roni
cal
l
y,LI
Cemer
ged
asabenef
ici
aryf
rom t
hispr
ocesswi
thr
obustper
for
mance,al
bei
tonabase
subst
ant
ial
l
yhi
ghert
hant
hepr
ivat
esect
or.

I
n 2013 t
he Fi
rstYearPr
emi
um 
compound annualgr
owt
hrat
e (
CAGR)was

Page19
 24.
53%whi
l
eTot
alLi
fePr
emi
um CAGRwas19.
28%mat
chi
ngt
hegr
owt
hoft
he
l
i
fei
nsur
ancei
ndust
ryandal
soout
per
for
minggener
aleconomi
cgr
owt
h.

Pr
oduct
sandSer
vices

LI
Cof
fer
sav
ari
etyofi
nsur
ancepr
oduct
stoi
tscust
omer
ssuchasi
nsur
ance
pl
ans,pensi
onpl
ans,uni
t-
li
nkedpl
ans,speci
alpl
ansandgr
oupschemes.
Onl
i
ne
Chi
l
dinsur
ancePl
ans

Oper
ati
ons

Today
,theLI
Chas8zonalof
fi
ces,
around113di
vi
sionalof
fi
ces,
2,048br
anches
[
1]
and992sat
ell
i
teof
fi
cesandcor
por
ateof
fi
ces;  
ital
sohas54cust
omerzones
and25met
ro-
areaser
vicehubsl
ocat
edi
ndi
ff
erentci
ti
esandt
ownsofI
ndi
a.I
t
al
sohasanet
wor
kof1,
337,
064i
ndi
vi
dualagent
s,242Cor
por
ateAgent
s,89
Ref
err
alAgent
s,98Br
oker
sand42Banksf
orsol
i
cit
ingl
i
fei
nsur
ancebusi
ness
f
rom t
hepubl
i
c.

Sl
ogan

LI
C'ssl
ogan 
yogakshemam v
ahamy
aha 
i
sin 
Sanskr
it
 l
anguagewhi
cht
ransl
ates
i
nEngl
i
shas"
Yourwel
far
eisourr
esponsi
bil
i
ty"
.Thi
sisder
ivedf
rom anci
ent
Hi
ndut
ext
,the 
Bhagav
adGi
ta'
s9t
hchapt
er,22ndv
erse.
 Thesl
ogancanbeseen
i
nthel
ogo,
wri
tt
eni
n Dev
anagar
iscr
ipt
.

Awar
dsandr
ecogni
ti
ons

 TheEconomi
cTi
mesBr
andEqui
tySur
vey2012r
atedLI
C ast
heNo.6Most
Tr
ust
edSer
viceBr
andofI
ndi
a.

 Fr
om t
hey
ear2006,LI
C hasbeencont
inuousl
ywi
nni
ngt
heReader
s'Di
gest

Page20
 Tr
ust
edbr
andawar
d.

 Vot
edI
ndi
a'
sMostTr
ust
edbr
andi
ntheBFSIcat
egor
yaccor
dingt
otheBr
and
Tr
ustRepor
tfor4cont
inuousy
ear
s-2011-
2014accor
dingt
othe 
BrandTr
ust
Repor
t.

Empl
oyeesandagent
s

Ason31Mar
ch2014,LI
Chad1,
20,
388empl
oyees,outofwhi
ch24,
867wer
e
women(
20.
65%)
.

Tot
al No. of
Cat
egor
yofempl
oyees
Number Women

Cl
ass-
IOf
fi
cer
s 31,
420 6,
292

Cl
ass-
II Dev
elopment
26,
621 1,
033
Of
fi
cer
s

Cl
assI
II
/I
Vempl
oyees 62,
347 17,
542

Tot
al 1,
20,
388 24,
867

AgencySt
rengt
h

LI
Chad11,
95,
916agent
sason31Mar
ch2014,outofwhi
cht
henumberof
act
iveagent
swer
e11,
32,
677(
94.
71%)
.

YourPol
i
cyBondAndI
tsSaf
ety

Page21
Thepol
i
cybondi
sthedocumentt
hati
sgi
vent
oyouaf
terweaccepty
our
pr
oposalf
ori
nsur
ance.Ther
iskcov
eragecommencesaf
teraccept
anceofy
our
pr
oposalandt
hecondi
ti
onsandpr
ivi
l
egesofy
ourpol
i
cyar
ement
ionedi
nthe
pol
i
cybond.

Thi
sisani
mpor
tantdocumentwhi
chwoul
dber
efer
redt
oforv
ari
ousser
vici
ng
i
nter
act
ionswi
thy
ou–Keept
hepol
i
cybondsaf
e.I
twi
l
lber
equi
redatt
het
ime
ofset
tl
ementofcl
aimsont
hepol
i
cy.Youwi
l
lal
sor
equi
rei
tify
ouar
eav
ail
i
nga
l
oanorwantt
oassi
gnt
hepol
i
cy.

I
nfor
myourspouse/
Par
ent
s/Chi
l
drenast
owher
ethepol
i
cyi
skept
.

I
ncasey
ouar
ehandi
ngov
ert
hepol
i
cybondt
oanyper
sonorof
fi
ce,
pleaset
ake
a wr
it
ten acknowl
edgement
.Keep a Phot
ost
atcopyoft
he pol
i
cyf
ory
our
r
efer
ence.

YourPol
i
cyNumber

Thepol
i
cynumberi
sconsi
sti
ngofni
nedi
git
sandcanbef
oundatt
het
opl
eft
handcor
neroft
heschedul
eofy
ourpol
i
cybond.

Thi
sisauni
quei
dent
if
icat
ionnumbert
hatdi
sti
ngui
shesy
ourpol
i
ciesf
rom ot
her
pol
i
ciesandwi
l
lremai
nunchangedt
hroughoutt
hel
i
fet
imeoft
hepol
i
cy.

Remembert
oquot
ethepol
i
cynumberev
eryt
imei
nyourcor
respondence,asi
t
hel
psust
olocat
eyourr
ecor
dsf
orr
efer
ence.

Pol
i
cyCondi
ti
ons

Ev
erypol
i
cyi
stakenf
ordi
ff
erentt
ypesofneeds;t
her
efor
ethecondi
ti
onsf
or
y
ourpol
i
cywi
l
lvar
yaccor
dingt
othePl
anandTer
m oft
hepol
i
cy.

Thepol
i
cyschedul
econt
ainsont
hef
ir
stpageofy
ourpol
i
cy,l
i
ket
heones
ment
ionedabov
easwel
lasot
heri
nfor
mat
ionl
i
kenomi
nee,y
ouraddr
esset
c.I
t
al
soshowst
hedat
eofcommencementofy
ourpol
i
cy,dat
eofbi
rt
h,dat
eof
mat
uri
ty,duedat
esandmont
hsi
nwhi
cht
her
enewalpr
emi
umsar
etobepai
d
et
c.

Page22
Thesecondpageonwar
dscar
ri
est
hev
ari
ouspol
i
cycondi
ti
onsl
i
ker
iskcov
erage,
addi
ti
onalr
iskscov
eragei
fopt
edf
or,st
andar
dbenef
it
sthatar
eav
ail
abl
eforal
l
pol
i
cies,acci
dentbenef
iti
fopt
ed f
or,excl
usi
on ofr
isks i
fanyand ot
her
condi
ti
onst
hatgov
ernt
hecont
ractofi
nsur
ance.

Apar
tfr
om deat
hbenef
it
sther
ear
eot
herst
andar
dbenef
it
sandbenef
it
sopt
ed
byt
hepol
i
cyhol
der
,whi
chy
oumi
ghtwantt
ofami
l
iar
izey
our
sel
fwi
th(
Cli
ckher
e
t
oknowmor
eaboutv
ari
oust
ypesofpol
i
cycondi
ti
onsandt
hei
rimpl
i
cat
ions)
.

Al
ter
ati
onsI
nPol
i
cy

Ther
emaybei
nst
anceswheny
ouwoul
dli
ket
omakeal
ter
ati
onsi
nyourpol
i
cy
l
i
kechangeofpr
emi
um pay
mentmode,
reduct
ioni
npr
emi
um pay
ingt
erm et
c.

Yourappl
i
cat
ionsmaybegi
veni
nwr
it
ingt
othebr
ancht
hatser
vicesy
ourpol
i
cy
f
orourf
urt
heract
ion.

I
fYourPol
i
cyI
sLost

I
fthepol
i
cybondi
spar
ti
all
ydest
roy
edduet
onat
uralcausesl
i
ke,f
ir
e,f
lood,et
c,
t
her
emai
ningpor
ti
onmayber
etur
nedasev
idenceofl
ossofpol
i
cyt
oLI
C,whi
l
e
appl
yi
ngf
oradupl
i
cat
epol
i
cy.

Page23
 CHAPTER4

PROFI
LEOFI
CICIPRUDENTI
ALI
NSURANCECOMPANY

4.
1Int
roduct
ion

I
CICILombar
dGener
alI
nsur
anceCompanyLi
mit
edi
saj
ointv
ent
urebet
ween
I
CICIBankLi
mit
ed,I
ndi
a'
ssecondl
argestbankwi
tht
otalasset
sofov
erUSD99
bi
l
li
onat31Mar
ch2014andFai
rf
axFi
nanci
alHol
dingsLi
mit
ed,
aCanada-
based
USD 37 bi
l
li
on di
ver
sif
ied f
inanci
alser
vices company engaged i
n gener
al
i
nsur
ance, r
einsur
ance, i
nsur
ance cl
aims management and i
nvest
ment
management
.[
2]I
CICILombar
dGI
C Lt
d.i
sthel
argestpr
ivat
esect
orgener
al
companyi
nIndi
awi
thaGr
ossWr
it
tenPr
emi
um (
GWP)ofRs71.
34bi
l
li
onThe
f
ir
m of
fer
spol
i
cyi
nsur
anceandr
enewalt
hroughi
tsi
nter
medi
ari
esandwebsi
te.
I
tmar
ket
s assur
ance pr
oduct
sincl
udi
ng CarI
nsur
ance,Heal
thI
nsur
ance,
I
nter
nat
ionalTr
avelI
nsur
ance,Ov
erseasSt
udentTr
avelI
nsur
ance,TwoWheel
er
I
nsur
ance,HomeI
nsur
anceand Weat
heri
nsur
ance.I
CICILombar
d has221
br
anchesspr
eadacr
osst
henat
ionEst
abl
i
shedi
n2001;I
CICILombar
dGener
al
I
nsur
anceCompanyi
saj
ointv
ent
urebet
weenI
CICIBank-I
ndi
a’
ssecondl
argest
bankandFai
rf
axf
inanci
alHol
dingsLi
mit
ed-f
inanci
alSer
vicesCompanybasedi
n
Tor
ont
o.I
CICIbankhas74%st
akei
nthev
ent
urewhi
l
eFai
rf
axhast
her
esti
nthe
v
ent
ure.

The I
ndust
ri
alCr
edi
tand I
nvest
mentCor
por
ati
on ofI
ndi
a Li
mit
ed (
ICI
CI)
i
ncor
por
atedatt
hei
nit
iat
iveoft
heWor
ldBank,t
heGov
ernmentofI
ndi
aand
r
epr
esent
ati
vesofI
ndi
ani
ndust
ry,wi
tht
heobj
ect
iveofcr
eat
ingadev
elopment
f
inanci
ali
nst
it
uti
onf
orpr
ovi
dingmedi
um-
ter
m andl
ong-
ter
m pr
ojectf
inanci
ngt
o
I
ndi
anbusi
nesses.Mr
.A.
RamaswamiMudal
i
arel
ect
edast
hef
ir
stChai
rmanof
I
CICILi
mit
ed.

I
CICIemer
gesast
hemaj
orsour
ceoff
orei
gncur
rencyl
oanst
oIndi
ani
ndust
ry.
Besi
desf
undi
ngf
rom t
heWor
ldBankandot
hermul
ti
-l
ater
alagenci
es,I
CICIwas
al
soamongt
hef
ir
stI
ndi
ancompani
est
orai
sef
undsf
rom i
nter
nat
ionalmar
ket

Page24
I
CICIBankbecamet
hef
ir
stcommer
cial
bankf
rom I
ndi
atol
i
sti
tsst
ockonNYSE.

4.
2Hi
stor
y

I
CICIBankst
art
edasawhol
l
yownedsubsi
diar
yofI
CICILi
mit
ed,anI
ndi
an
f
inanci
ali
nst
it
uti
on,i
n1994.Foury
ear
slat
er,whent
hecompanyof
fer
edI
CICI
Bank'
sshar
est
othepubl
i
c,I
CICI
'
sshar
ehol
dingwasr
educedt
o46%.I
nthey
ear
2000,
ICI
CIBankof
fer
edmadeanequi
tyof
fer
ingi
nthef
orm ofADRsont
heNew
Yor
kSt
ockExchange(
NYSE)
,ther
ebybecomi
ngt
hef
ir
stI
ndi
ancompanyandt
he
f
ir
stbankorf
inanci
ali
nst
it
uti
onf
rom NonJapanAsi
atobel
i
stedont
heNYSE.I
n
t
he nexty
ear
,itacqui
red t
he Bank of Madur
a Li
mit
ed i
n an alst
ock
amal
gamat
ion.Lat
eri
nthe y
earand t
he nextf
iscaly
ear
,the bank made
secondar
ymar
ketsal
est
oinst
it
uti
onali
nvest
ors.Wi
thachangei
nthecor
por
ate
st
ruct
ure and t
he buddi
ng compet
it
ion i
nthe I
ndi
an Banki
ng i
ndust
ry,t
he
managementofbot
hICI
CIandI
CICIBankwer
eoft
heopi
niont
hatamer
ger
bet
weent
het
woent
it
ieswoul
dpr
ovet
obeanessent
ialst
ep.I
twasi
n2001t
hat
t
heBoar
dsofDi
rect
orsofI
CICIandI
CICIBanksanct
ionedt
heamal
gamat
ionof
I
CICIandt
woofi
tswhol
l
yownedr
etai
lfi
nancesubsi
diar
ies,I
CICIPer
sonal
Fi
nanci
alSer
vicesLi
mit
edandI
CICICapi
talSer
vicesLi
mit
ed,wi
thI
CICIBank.I
n
t
hef
oll
owi
ngy
ear
,themer
gerwasappr
ovedbyi
tsshar
ehol
der
s,t
heHi
ghCour
t
ofGuj
aratatAhmedabadaswel
last
heHi
ghCour
tofJudi
cat
ureatMumbaiand
t
heReser
veBankofI
ndi
a.

4.
3Cur
rentScenar
io

I
CICIBanki
sIndi
a'
ssecondl
argestbankwi
tht
otalasset
sofRs.3,
634.
00bi
l
li
on
(
US$81bi
l
li
on)atMar
ch31,2010andpr
ofi
taf
tert
axRs.40.
25bi
l
li
on(
US$896
mi
l
li
on)f
ort
hey
earendedMar
ch31,2010.TheBankhasanet
wor
kof2,
016
br
anchesandabout5,
219ATMsi
nIndi
aandpr
esencei
n18count
ri
es.I
CICIBank
of
fer
sawi
der
angeofbanki
ngpr
oduct
sandf
inanci
alser
vicest
ocor
por
ateand
r
etai
lcust
omer
sthr
ough a v
ari
ety of del
i
ver
y channel
s and t
hrough i
ts
speci
ali
zedsubsi
diar
iesi
nthear
easofi
nvest
mentbanki
ng,l
i
feandnon-
li
fe
i
nsur
ance,v
ent
ure capi
taland assetmanagement
.The Bank cur
rent
lyhas

Page25
subsi
diar
iesi
ntheUni
ted Ki
ngdom,Russi
aand Canada,br
anchesi
nUni
ted
St
ates,Si
ngapor
e,Bahr
ain,HongKong,Sr
iLanka,Qat
arandDubaiI
nter
nat
ional
Fi
nanceCent
reandr
epr
esent
ati
veof
fi
cesi
nUni
tedAr
abEmi
rat
es,Chi
na,Sout
h
Af
ri
ca,Bangl
adesh,Thai
l
and,Mal
aysi
aandI
ndonesi
a.OurUK subsi
diar
yhas
est
abl
i
shedbr
anchesi
nBel
gium andGer
many
.ICI
CIBank'
sequi
tyshar
esar
e
l
i
stedi
nIndi
aonBombaySt
ockExchangeandt
heNat
ionalSt
ockExchangeof
I
ndi
aLi
mit
edandi
tsAmer
icanDeposi
tar
yRecei
pts(
ADRs)ar
eli
stedont
heNew
Yor
kSt
ockExchange(
NYSE)
.Est
abl
i
shedi
n1994,
ICI
CIBanki
stodayt
hesecond
l
argestbanki
nIndi
aandamongt
het
op150i
nthewor
ld.I
nlesst
hanadecade,
t
hebankhasbecomeauni
ver
salbankof
fer
ingawel
ldi
ver
sif
iedpor
tfol
i
oof
f
inanci
alser
vices.I
tcur
rent
lyhasasset
sofov
erUS$79bi
l
li
onandamar
ket
capi
tal
i
zat
ionofUS$9bi
l
li
onandser
vicesov
er14mi
l
li
oncust
omer
sthr
ougha
net
wor
kofabout950br
anches,3300ATM'
sanda3200seatcal
lcent
er(
asof
2007)
.Thehal
l
mar
koft
hisexponent
ialgr
owt
hisI
CICIBank’
sunwav
eri
ngf
ocus
ont
echnol
ogy
.

I
CICIBankhasawi
denet
wor
kbot
hinI
ndi
anandabr
oad.I
nIndi
aal
one,
thebank
has1,
420br
anchesandabout4,
644ATMs.Tal
ki
ngaboutf
orei
gncount
ri
es,
ICI
CI
Bankhasmadei
tspr
esencef
elti
n18count
ri
es-
Uni
tedSt
ates,78Si
ngapor
e,
Bahr
ain,
HongKong,
SriLanka,
Qat
arandDubaiI
nter
nat
ionalFi
nanceCent
reand
r
epr
esent
ati
veof
fi
cesi
nUni
tedAr
abEmi
rat
es,Chi
na,Sout
hAf
ri
ca,Bangl
adesh,
Thai
l
and,Mal
aysi
aandI
ndonesi
a.TheBankpr
oudl
yhol
dsi
tssubsi
diar
iesi
nthe
Uni
ted Ki
ngdom,Russi
a and Canada outofwhi
ch,t
he UK subsi
diar
yhas
est
abl
i
shedbr
anchesi
nBel
gium andGer
many
.

4.
4Pr
oduct&Ser
vices

Per
sonal
Banki
ng

Deposi
ts

LoansCar
ds

I
nvest
ment
sInsur
ance

Page26
DematSer
vicesWeal
thManagement

NRIBanki
ng

MoneyTr
ansf
er

BankAccount
s

I
nvest
ment
s

Pr
oper
tySol
uti
ons

I
nsur
anceLoans

Busi
nessBanki
ng

Cor
por
ateNetBanki
ng

CashManagement

Tr
adeSer
vices

4.
5Insur
anceandi
nvest
mentpr
oduct
s

Li
fei
nsur
ance

Gener
ali
nsur
ance

Secur
it
ies

 Li
feI
nsur
ance

Li
fei
nsur
ancei
sapr
otect
ion+sav
ingsf
inanci
alt
oolt
hatonecanuset
oachi
eve
l
ongt
ermf
inanci
algoal
sofl
i
feandt
opr
otectt
hef
inanci
alwel
l
-bei
ngoff
ami
l
y
agai
nstr
isksofunt
imel
ydeat
h.Li
feI
nsur
ancei
sthati
ntegr
alpar
toff
inanci
al
pl
anni
ngt
hatsecur
est
hef
ami
l
y’sf
utur
e.I
tisi
mpor
tantt
otakel
i
fei
nsur
anceon
t
heear
ningmember
(s)oft
hef
ami
l
ysot
hati
ntheev
entofhi
s/herunt
imel
y
deat
h,f
utur
eexpensesoff
ami
l
ycanbemanaged.

Page27
I
nsi
mpl
eter
ms:

Whenonebuy
sal
i
fei
nsur
ancepol
i
cy,he/
shebecomest
heLi
feAssur
edor
I
nsur
edt
otheext
entoft
heLi
feCov
erorSum Assur
edsel
ect
ed.Att
hispoi
nt,
he/
shewi
l
lal
sosel
ectt
heNomi
neeorBenef
ici
arywhowi
l
lrecei
vet
hebenef
iti
n
caseofhi
s/herunt
imel
ydeat
h.

The i
nsur
ance company t
hatsel
l
sthe l
i
fei
nsur
ance pol
i
cy i
sthe I
nsur
er
(
Exampl
e:I
CICIPr
udent
ial
Lif
eInsur
ance)
.

Li
feCov
erorSum Assur
edi
stheamountt
hatt
heI
nsur
erwi
l
lpayt
otheNomi
nee
upondeat
hoft
heLi
feAssur
ed.I
ncaseofsomepol
i
cies,i
ftheLi
feAssur
ed
sur
viv
est
hepol
i
cy

Agoodi
nsur
ancepol
i
cywoul
dof
fery
out
hesebenef
it
s:

Li
feCov
er:Thi
sist
hekeybenef
itt
hatwi
l
lmaket
hedi
ff
erencei
nyourl
i
fe,or
af
tery
ourl
i
fe.Li
fecov
ersi
mpl
ymeanst
hati
fyouhav
etakenal
i
fei
nsur
ance
pol
i
cyandi
ftomor
rowmi
sfor
tunest
ri
kesl
eadi
ngt
oyourdeat
h,t
heny
ourf
ami
l
y
st
aysf
inanci
all
ypr
otect
ed.Thi
sisbecauset
hel
i
fei
nsur
erwi
l
lpayal
ump-
sum
amountt
oyourf
ami
l
y.

Howev
er,y
ou need t
o be sensi
ti
ve abouthow much l
i
fe cov
ery
ou need.
Remember
,li
fei
nsur
ancei
stakent
ocov
ert
her
iskofanear
ningmembernot
bei
ngt
her
e.TheLi
feCov
eramountshoul
dbesuf
fi
cientt
otakecar
eoft
he
f
ami
l
y’sexpenses.

Agoodt
humbr
ulei
stoensur
ethaty
ourl
i
fei
nsur
ancecov
eri
satl
east10-
15
t
imesy
ourannuali
ncome.Forexampl
e,i
fyourannuali
ncomei
sRs15l
akht
hen
y
ourl
i
fecov
ershoul
dbeatl
eastRs1.
5Cr
ore.Si
mil
arl
y,i
fyourannuali
ncomei
s

Page28
Rs2l
akhpery
ear
,theny
ourl
i
fecov
ershoul
dbeatl
eastRs20l
akh.

LongTer
m Sav
ings:Li
feI
nsur
ancei
sal
soagoodwayt
osy
stemat
ical
l
ysav
eand
bui
l
dupf
undsf
ort
hef
utur
e.I
tisani
deall
ongt
erm sav
ingst
oolt
hatcanhel
p
y
oumeety
ourf
inanci
alneedsaf
terr
eti
rementorev
enf
ulf
ilaf
utur
egoal
li
key
our
chi
l
d’smar
ri
age.Thuswi
thl
i
fei
nsur
ancey
ougetdualbenef
it
sofPr
otect
ion+
Sav
ings.

TaxAdv
ant
age:
Youcangett
axbenef
it
sonpr
emi
um pai
dtowar
dsLi
feI
nsur
ance
pol
i
ciesunderSect
ion80C,Pensi
onpol
i
ciesundersect
ion80CCCandHeal
th
pol
i
ciesundersect
ion80D ofI
ncomeTaxAct1961.So,wheny
oubuyl
i
fe
i
nsur
ance,
yougetpr
otect
ionov
eral
ongt
erm basi
sandy
oual
sogett
axbenef
it
s.

But
,makesur
ethaty
oual
way
scheckt
hatt
hepol
i
cyy
oubuypr
ovi
det
hese
benef
it
s.Byt
heway
,al
lourpr
oduct
sof
fert
axbenef
it
s.

Ret
ir
ementpl
an

Ret
ir
ementpl
ansar
eadef
ini
ti
vewayofensur
ingt
haty
ourcur
rentl
i
fest
ylei
s
mai
ntai
ned y
ear
s af
tery
ou st
op wor
king.Av
erage l
i
fe spans ar
e st
eadi
l
y
i
ncr
easi
ng.Thi
smeanst
hatav
erager
eti
rementy
ear
sar
eal
soont
her
ise

I
CICIPr
uEasyRet
ir
ement

Youhav
eal
way
swor
kedhar
dtowar
dspr
ovi
dingy
ourf
ami
l
ywi
thal
lthecomf
ort
s
l
i
fehast
oof
fer
.Woul
dyounotl
i
ket
oensur
ethati
tcont
inuesev
enaf
tery
our
r
eti
rement
?

Fort
hatt
ohappen,y
ouneedt
obui
l
danadequat
ecor
pust
hatwi
l
lgener
atea
si
zeabl
eregul
ari
ncomeoncey
oursal
aryst
ops.I
nvest
menti
n equi
tycoul
d
gener
atesuper
iorl
ongt
ermr
etur
nsandwoul
dhel
pyouaccumul
atet
her
equi
red
cor
pus.Buty
ouwoul
dal
sol
i
ket
ohav
easaf
etynetagai
nstmar
ketv
olat
il
it
yso
t
haty
oursav
ingsar
enotwi
pedout
.

I
CICIPr
u Easy Ret
ir
ementpr
ovi
des t
his sol
uti
on -t
he benef
itofequi
ty

Page29
par
ti
cipat
ionwi
tht
hecomf
ortofacapi
tal
guar
ant
ee.

WhychooseI
CICIPr
uEasyRet
ir
ement
?

Bui
l
dyourr
eti
rementcor
pusaspery
ourr
iskappet
it
e

Pr
otecty
oursav
ingsf
rom mar
ketdownt
urnst
hroughanAssur
edBenef
it

Enhancey
ourr
eti
rementcor
pust
hroughPensi
onBoost
ers

Opt
iont
opaypr
emi
umsf
orf
ivey
ear
s,t
eny
ear
sort
hroughoutt
hepol
i
cyt
erm

I
nvestanyav
ail
abl
emoneyi
ntot
hepol
i
cyi
nthef
orm ofTopups

Atr
eti
rement
,choosef
rom t
heav
ail
abl
eannui
tyopt
ionsaspery
ourneedsand
getr
egul
ari
ncome

Av
ailt
ax benef
it
s on pr
emi
ums pai
d and r
ecei
ve up t
o one-
thi
rd oft
he
accumul
ated v
alue on r
eti
rementdat
e asa t
ax-
fr
ee l
ump sum,aspert
he
pr
evai
l
ingI
ncomeTaxl
aws

Howi
twor
ks.

EasyRet
ir
ementSecur
eFund:Thi
sfundwi
l
linv
estexcl
usi
vel
yindebt
,money
mar
ketandequi
tyr
elat
edsecur
it
ies

EasyRet
ir
ementBal
ancedFund:Upt
o50%oft
hei
nvest
ment
sint
hisf
undwi
l
lbe
i
nequi
tycashi
nst
rument
s.

Youpaypr
emi
umst
owar
dst
hepol
i
cyt
oaccumul
atef
undsf
ory
ourr
eti
rement
whi
l
eenj
oyi
ngt
hesaf
etynetofanAssur
edBenef
it
.Youcanal
soi
nvestany
av
ail
abl
emoneyi
nthef
orm ofTopups.

Att
het
imeofv
est
ing,i
.e.t
hemat
uri
tyoft
hepol
i
cy,y
oucanexer
ciseoneoft
he
f
oll
owi
ngopt
ions:

Regul
ari
ncome:Pur
chaseanannui
tywi
tht
heaccumul
atedv
alueandr
ecei
ve
r
egul
ari
ncome.

Commut
ati
onpl
usr
egul
ari
ncome:Recei
veal
umpsum ofupt
oone-
thi
rdoft
he

Page30
accumul
atedv
alue,
tax-
fr
ee.Ther
emai
ningamountmustbeusedt
opur
chasean
annui
ty,
prov
idi
ngy
ouwi
thr
egul
ari
ncome.

Post
ponementofv
est
ingdat
e:Changet
hedat
eonwhi
chy
ouwantt
ost
art
r
ecei
vi
ngr
egul
ari
ncome,
i.
e.y
ourv
est
ingdat
e,pr
ovi
dedy
ouar
ebel
owanageof
55y
ear
s.Youcanchooset
opost
poney
ourv
est
ingdat
eanynumberoft
imes.

I
nvesti
n asi
ngl
epr
emi
um def
err
ed pensi
on pr
oduct
:Uset
heaccumul
ated
amountt
opur
chaseasi
ngl
epr
emi
um def
err
edpensi
onpr
oduct
.

I
CICIPr
uImmedi
ateAnnui
ty

I
nyourgol
deny
ear
swor
ri
esaboutsecur
it
yandcomf
ortbecomegr
eat
er.Today
,
wi
thr
isi
ngpr
icesi
ncr
easi
ngheal
thcar
ecost
sandhi
gherl
i
feexpect
ancy
,you
needconcr
etepl
anni
ngpost
-r
eti
rementt
ohel
pyoudealwi
thi
t.Whaty
ouneedi
s
apl
ant
hatnotonl
yhel
psy
oupl
anf
orr
eti
rement
,butal
socont
inuest
opayy
ou
ani
ncomet
hroughouty
ourr
eti
redl
i
fe.

AtI
CICIPr
udent
ialLi
feI
nsur
anceCompanyLi
mit
ed,
wer
eal
i
zet
hei
mpor
tanceof
apr
udentr
eti
rementpl
anni
ng.Pr
esent
ingI
CICIPr
uImmedi
ateAnnui
ty-apl
an
t
hatnotonl
ygi
vey
ouani
ncomef
orl
i
febutal
sopr
ovi
dey
ouopt
ionst
omat
ch
y
ourneeds.

HowdoesI
CICIPr
uImmedi
ateAnnui
tywor
k?

Chooseaonet
imel
umpsum amountt
haty
ouwi
l
lpayi
nor
dert
opur
chaset
his
pl
an

Optf
orany
oneamongstt
he5pay
outopt
ionsasment
ionedbel
ow

Choosef
rom 4annui
typay
outmodes–mont
hly
,quar
ter
ly,
hal
fyear
lyory
ear
ly.

Howdoest
hepay
outopt
ionwor
k?

Thr
oughal
umpsum I
nvest
menti
nthi
spl
an,
youst
artget
ti
ngar
egul
ari
ncomei
n

Page31
t
hef
orm ofannui
ty.Theact
ualamountofannui
tychosenwi
l
ldependupont
he
annui
tyr
ateappl
i
cabl
eatt
het
imef
orpur
chasi
ngt
heannui
ty.Ther
atesar
e
guar
ant
eedf
ort
hel
i
feoft
heannui
tant
.Theannui
tycanber
ecei
vedi
nmont
hly
,
quar
ter
ly,
hal
fyear
lyory
ear
lymodes.

Whatar
ethepay
outopt
ionsav
ail
abl
e?

Li
feAnnui
ty:
Annui
tyf
orLi
fe

Li
feAnnui
tywi
thRet
urnofPur
chasePr
ice:Li
feAnnui
tyf
orannui
tantwi
thr
etur
n
ofpur
chasepr
iceondeat
htot
hebenef
ici
ary
.

Joi
ntLi
fe,LastSur
viv
orwi
thoutRet
urnofPur
chasePr
ice:Theannui
tyi
sfi
rst
pai
dtot
heannui
tant
.Af
tert
hedeat
hoft
heannui
tant
,thespouser
ecei
vesa
pensi
on,
whi
chi
sanamountequal
tot
heannui
typai
dtot
heannui
tant
.

Joi
ntLi
fe,LastSur
viv
orwi
thRet
urnofPur
chasePr
ice:Theannui
tyi
sfi
rstpai
d
t
otheannui
tant
.Af
tert
hedeat
hoft
heannui
tant
,thespouser
ecei
vesapensi
on
whi
chi
sanamountt
hati
sequalt
otheannui
typai
dtot
heannui
tant
.Af
tert
he
deat
hoft
hel
astsur
viv
or,
thepur
chasepr
icei
sret
urnedt
othenomi
nee.

Li
feAnnui
tyguar
ant
eedf
or5/
10/
15y
ear
sandt
her
eaf
ter:Guar
ant
eedannui
tyi
s
pai
dfort
hechosent
erm(
5/10/
15)andaf
tert
hat
,theannui
tycont
inuesasl
ong
ast
heannui
tanti
sal
i
ve.

 Gener
ali
nsur
ance

STUDENTMEDI
CALI
NSURANCE

ManyI
ndi
anst
udent
sst
ri
vet
ost
udyabr
oad,put
ti
ngi
nlonghour
sofhar
dwor
k
anddedi
cat
iont
owar
dsachi
evi
ngt
hei
rdr
eam.Whent
hest
udentf
inal
l
ysecur
es
admi
ssi
on t
o hi
sorherdr
eam uni
ver
sit
y,af
terappear
ing f
orapl
ethor
aof
exami
nat
ionsandi
nter
views,
iti
sadr
eam-
come-
tr
uef
ornotonl
ythest
udentbut
al
sot
hef
ami
l
y.

Howev
er,bot
hthe st
udentand t
he par
ent
sface a l
otofanxi
etyov
ert
he
separ
ati
on and di
stance f
rom home.A chal
l
engi
ng cour
se,an unknown

Page32
env
ironment
,adi
ver
secul
tur
e-t
hel
i
stcanbequi
tedaunt
ing.Fur
ther
mor
e,
par
ent
sinv
estal
otofhar
d-ear
nedmoneyt
osendt
hei
rchi
l
drenabr
oad,whi
ch
cancausesubst
ant
ial
financi
alst
ress.

Whi
l
eiti
snotpossi
blet
oaddr
essal
lconcer
ns,y
oucanal
l
evi
ateanyf
inanci
al
r
isksbyopt
ingf
orSt
udentMedi
calI
nsur
ance.Thesepl
ansnotonl
ypr
otect
st
udent
sfr
om f
inanci
all
ossesbutal
so pr
ovi
de t
hem assi
stance dur
ing an
emer
gency
,thr
oughoutt
hei
rst
ayabr
oad.

WhyYouNeedI
t?

St
udentMedi
cal
Insur
ancesaf
eguar
dsst
udent
sagai
nstunf
oreseenexpendi
tur
es
t
hatmayar
iseduet
omedi
calmi
shapsdur
ingt
hei
rst
udi
esabr
oad.Medi
cal
i
ssuescoul
dar
iseduet
othechangei
nenv
ironment
,li
fest
yle,ment
alst
ressand
v
ari
ousot
hercauses.I
tisi
mpor
tantt
oknowt
hatt
hecostofmedi
calt
reat
ment
abr
oadi
smuchhi
ghert
hani
nIndi
a.

Besi
descov
eri
ngheal
th-
rel
atedcost
s,st
udentpl
ansal
sor
eimbur
secost
srel
ated
t
onon-
medi
calexi
genci
es,t
her
ebychecki
ngunbudget
edexpensest
hatcoul
d
l
eadt
ofi
nanci
alset
backs.

St
udy
ingf
orademandi
ngcour
seandl
i
vingwi
thpeopl
efr
om adi
ff
erentcul
tur
eis
t
oughandSt
udentMedi
calI
nsur
ancePl
aneasest
hebur
denofmedi
calandnon-
medi
cal
expensesi
nsuchascenar
io.

ThoughI
ndi
ani
nsur
ancepl
ansar
eav
ail
abl
einr
upees,
thepol
i
cycov
eragewi
l
lbe
US dol
l
arsort
heequi
val
entamountoft
hecur
rencyoft
hecount
ryy
ouar
e
st
udy
ingi
n.

Page33
Mandat
oryi
nSev
eral
Count
ri
es

I
nsomecount
ri
es,i
ncl
udi
ngt
heUni
tedSt
atesofAmer
ica,uni
ver
sit
ieshav
e
madei
tcompul
sor
yforst
udent
stobecov
eredbyasui
tabl
est
udenti
nsur
ance
pol
i
cy.You can optf
ori
nsur
ance pr
ovi
ded by t
he uni
ver
sit
y,orpur
chase
domest
icst
udentt
rav
eli
nsur
ance,
thel
att
erbei
ngmor
eeconomi
cal
.

I
ntheUni
tedKi
ngdom,Nat
ionalHeal
thSer
vice(
NH)pr
ovi
desmedi
calcar
eto
st
udentv
isahol
der
s.Howev
er,i
tispr
udentf
orst
udent
str
avel
l
ingt
oUK t
o
pur
chaseani
nsur
ancepl
anf
rom I
ndi
a,sot
hatt
heycanav
ailmedi
calf
aci
l
iti
esi
n
pr
ivat
ehospi
tal
sofUK andmeetexpensesofot
herexi
genci
est
hatar
enot
pr
ovi
dedf
orundert
heNHS.

Adv
ant
agesofSt
udentMedi
cal
Insur
ance

Ment
alpeacef
orst
udent
sandf
ami
l
iesi
sundoubt
edl
ythebi
ggestadv
ant
ageof
av
ail
i
ngsuchpl
ans.Whi
l
est
udent
scanconcent
rat
eont
hei
rst
udi
es,
thei
rfami
l
y
backhomecanl
i
vewi
thouthav
ingt
owor
ryaboutt
hei
rchi
l
d’smonet
aryhur
dles
abr
oad.

CHAPTER5

PRODUCTSOFLI
C&I
CICIPRUDENTI
ALI
NSURANCE
COMPANY

5.
1Pr
oduct
sofLI
C

 Si
ngl
ePr
emi
um EndowmentPl
an:

Thi
sisanendowmentpl
anorpol
i
cywhi
chcombi
nessav
ingsandf
inanci
al
pr
otect
ion.I
ncaset
heper
sonwhosel
i
fei
sinsur
edsur
viv
est
het
erm ofmat
uri
ty,
he/
shewi
l
lgett
heassur
edsum al
ongwi
tht
heensuedbonus.I
ftheper
sondi
es
wi
thoutcompl
eti
ngt
het
erm ofmat
uri
ty,t
hent
henomi
neeget
sthement
ioned
t
otalamount
.Howev
ert
het
axbenef
itf
ort
hispl
ani
snotgr
eat
;iti
sonl
y10%of

Page34
t
hei
nit
ial
sum,
nomat
terhowl
arget
heamounti
s.

I
ncaset
heageofpol
i
cyhol
deri
slesst
han8y
ear
satt
het
imeofst
art
ingpol
i
cy,
ther
isk
wi
l
lcommenceei
ther2y
ear
sfr
om t
hest
art
ingdat
eorf
rom t
hepol
i
cyanni
ver
sar
ywhi
ch
coi
nci
deswi
tht
heat
tai
nmentof8y
ear
s,whi
chev
ercomesbef
ore.I
fthepol
i
cyhol
deri
s
abov
e8y
ear
sthent
her
iskcommencesi
mmedi
atel
y.Themi
nimum ageatent
ryi
s90
day
swhi
l
eMaxi
mum ageatent
ryi
s65y
ear
s.Ter
mrangesbet
ween10y
ear
sand25
y
ear
s.Themi
nimum ageatmat
uri
tyi
s18-
75y
ear
s.Ther
eisnoupperl
i
mitont
he
maxi
mum sum assur
edwhi
l
ethemi
nimum sum i
s50,
000Rupees.

 NewEndowmentPl
an:

Thi
sendowmentpl
angi
vest
hepol
i
cyhol
der
sthebenef
itofLI
C’sAcci
dent
al
Deat
handDi
sabi
l
ityBenef
itRi
deri
nequalmont
hlyi
nst
all
ment
sfor10y
ear
swi
th
t
hepay
mentofext
rapr
emi
um.Thesum assur
edondeat
h(notl
esst
han105%of
t
otalpr
emi
umspai
dor10t
imesofannual
i
zedpr
emi
um)i
spay
abl
etonomi
nee
ondeat
hofpol
i
cyhol
derort
othepol
i
cyhol
deronsur
viv
al.Thepr
ofi
tpl
ancanbe
t
akenany
timebet
ween8-
55y
ear
sandwi
l
lcont
inueupt
o75y
ear
s.

Thepol
i
cyhol
derwi
l
lgetashar
eint
hepr
ofi
tsoft
hecompanyt
hroughSi
mpl
e
Rev
ersi
onar
yBonusi
fthepol
i
cyi
srunni
ngpr
oper
ly.Fi
nalBonuswi
l
lbedecl
ared
att
het
imeofcl
aimi
ngt
hepol
i
cyt
hroughdeat
hormat
uri
ty.Thi
spl
anal
so
pr
ovi
desdi
sabi
l
itybenef
iti
ncaseofper
manentdi
sabi
l
itydur
ingpol
i
cyt
erm,
and
t
hef
utur
epr
emi
umswoul
d bewai
ved of
f.I
n caseofacci
dent
aldeat
h,an
opt
ionalr
idercal
l
ed Acci
dent
alDeat
h Benef
itr
idercan beopt
ed f
orwhi
ch
pr
ovi
dest
wicet
hesum assur
ed,
avai
l
abl
ewi
thpay
mentofRs.
100per1l
akhsum
assur
edev
eryy
ear
.Ser
viceTaxi
sappl
i
cabl
eont
hepr
emi
um pai
datt
her
ateof
3.
09% f
or1sty
earand1.
545% f
rom 2ndy
earonwar
ds.Thepol
i
cyt
erm can
ext
endf
rom 12-
35y
ear
s,andt
hesum assur
edst
art
sfr
om ami
nimum of1,
00,
000Rupees.

 Jeev
anAnand:

Thi
spl
anpr
ovi
desi
nsur
anceandr
iskcov
eragef
ort
heent
ir
eli
feoft
hepol
i
cy-
hol
der
,becauset
hispol
i
cywi
l
lcont
inueaf
tert
heendoft
hepol
i
cyt
erm.Att
he

Page35
endofpol
i
cyt
erm Sum assur
edal
ongwi
tht
heaccumul
atedbonusandf
inal
bonuswi
l
lbepai
dtot
hepol
i
cyhol
der
.Atdeat
horat
tai
nmentof100y
ear
soft
he
pol
i
cyhol
der(
whi
chev
eroccur
sear
li
er)
,sum assur
edwi
l
lbepai
dtot
henomi
nee.
Thepol
i
cycanbeboughtbet
ween18t
o50y
ear
s.Thepr
emi
um pay
ingmodes
ar
eyear
ly,hal
fyear
ly,quar
ter
lyandmont
hly(
ECSOnl
y).
ThePol
i
cyTer
mranges
f
rom 15t
o35Year
s.Thebasi
csum assur
edi
s100000andabov
e(i
nmul
ti
pleof
5000)
.ALoancanbeav
ail
edaf
ter3y
ear
s.

Thepol
i
cyhol
derwi
l
lgetashar
eint
hepr
ofi
tsoft
hecompanyt
hroughSi
mpl
e
Rev
ersi
onar
yBonusi
fthepol
i
cyi
srunni
ngpr
oper
ly.Fi
nalBonuswi
l
lbedecl
ared
att
het
imeofcl
aimi
ngt
hepol
i
cyt
hroughdeat
hormat
uri
ty.Thi
spl
anal
so
pr
ovi
desopt
ionaldi
sabi
l
itybenef
iti
ncaseofper
manentdi
sabi
l
itydur
ingpol
i
cy
t
erm,andt
hef
utur
epr
emi
umswoul
dbewai
vedof
f.I
ncaseofacci
dent
aldeat
h,
anopt
ionalr
idercal
l
edAcci
dent
alDeat
hBenef
itr
idercanbeopt
edf
orwhi
ch
pr
ovi
dest
wicet
hesum assur
ed,
avai
l
abl
ewi
thpay
mentofRs.
100per1l
akhsum
assur
edev
eryy
ear
.Ser
viceTaxi
sappl
i
cabl
eont
hepr
emi
um pai
datt
her
ateof
3.
09%f
or1sty
earand1.
545%f
rom 2ndy
earonwar
ds.

 Jeev
anRakshak:

Thi
sisar
egul
arendowmentassur
ancepl
anwi
thpr
ofi
t.I
tisanon-
medi
calf
ixed
benef
itpl
an.I
ncaseofdeat
hoft
hepol
i
cyhol
derdur
ingt
hepol
i
cyt
ermi
fno
pr
emi
umsar
edue,Sum Assur
edonDeat
hshal
lbepay
abl
e,whi
chi
sthehi
ghest
amongbasi
csum assur
ed,10t
imesofannual
i
zedpr
emi
um and105%ofal
lthe
pr
emi
umspai
dasondat
eofdeat
h.Loy
alt
yAddi
ti
onwi
l
lal
sobepai
difdeat
h
occur
saf
tercompl
eti
ng5y
ear
sofpol
i
cy.Whi
l
etheageatent
rymustbe8-
55
y
ear
s,t
heageatmat
uri
tyi
s75y
ear
s.Thepol
i
cyt
erm maybe10-
20y
ear
s.The
mi
nimum Basi
csum assur
edi
s75,
000Rupeesandt
hemaxi
mum Basi
cSum
Assur
edperl
i
fei
s2,
00,
000Rupeesperl
i
fe.

Page36
Thepol
i
cycanbesur
render
edatanyt
imei
fami
nimum oft
hreef
ully
ear
s´
pr
emi
umshav
ebeenpai
d.TheCor
por
ati
onmaypayt
heGuar
ant
eedSur
render
v
aluewhi
chi
saper
cent
ageoft
otalpr
emi
umspai
dexcl
udi
ngext
rapr
emi
ums,
or
t
he Speci
alSur
renderv
alue whi
ch i
sthe di
scount
ed v
alue ofPai
d-up Sum
assur
ed,whi
chev
eri
shi
gher
.Rebat
eisgi
venas1.
5%ofAssur
edSum abov
e1,
50,
000Rupees.Pr
emi
umspai
dupt
o1,50,
000Rupeesar
ededuct
edf
rom t
he
t
axabl
eincomeeachy
earandt
heMat
uri
tyPr
oceedsar
etaxf
reedependi
ngon
f
ulf
il
lmentoft
ermsandcondi
ti
ons.

 Jeev
anSangam:

Thi
sisasi
ngl
epr
emi
um l
i
fei
nsur
ancepl
ant
hati
spar
ti
cipat
ing,non-
li
nkedand
pr
ovi
desar
iskcov
eri
samul
ti
pleofsi
ngl
epr
emi
um.Thepr
oposercanchoose
t
heMat
uri
tySum Assur
edandt
hesi
ngl
epr
emi
um pay
abl
ewi
l
lbedependenton
t
hechosenamountofMat
uri
tySum Assur
edandageofpol
i
cyhol
der(and
excl
usi
ve ofser
vice t
ax)
.Ift
he pol
i
cyhol
derdi
es bef
oret
he dat
e ofr
isk
commencementandbef
orecompl
eti
ngf
ir
stf
ivepol
i
cyy
ear
s,t
hesi
ngl
epr
emi
um
wi
l
lbepai
dbackexcl
udi
ngser
vicet
axandext
rapr
emi
um wi
thouti
nter
est
.Ift
he
pol
i
cyhol
derdi
esaf
tert
hedat
eofcommencementofr
iskbef
orecompl
eti
ng
f
ir
stf
ivepol
i
cyy
ear
s,t
heBasi
csum assur
edi
spai
dwhi
chi
s10t
imest
het
abul
ar
si
ngl
epr
emi
um.I
fthepol
i
cyhol
derdi
esaf
terf
ir
stf
ivepol
i
cyy
ear
sbef
oret
he
dat
eofMat
uri
ty,t
heBasi
cSum Assur
edi
spai
dwhi
chi
s10t
imest
het
abul
ar
si
ngl
epr
emi
um i
naddi
ti
ont
otheLoy
alt
yAddi
ti
on.Onr
eachi
ngMat
uri
ty,t
he
Mat
uri
tySum assur
edal
ongwi
thLoy
alt
yaddi
ti
oni
spai
d.

TheLoy
alt
yaddi
ti
ondependsupont
hepar
ti
cipat
ionoft
hepol
i
cyhol
deri
nthe
pr
ofi
tsoft
heCor
por
ati
onasdecl
aredbyi
t,af
tert
hepol
i
cyhascr
osseda
mi
nimum of5y
ear
s.Thepr
emi
um i
sent
it
ledf
orr
ebat
eunder(
80C)andt
he
Mat
uri
tyamountwi
l
lbet
axf
reeunder(
10D)
.Theageofent
rycanbe6-
50y
ear
s
andt
hepol
i
cyt
ermi
sfi
xedf
or12y
ear
s.TheMat
uri
tySum Assur
edi
s75000and
abov
e(i
nmul
ti
plesof10000)
.Hi
ghSum assur
edRebat
ewhi
chi
s15Rupeeson0
t
o2,
00,
000Rupees,
15Rupeeson2,
00,
000t
o3,
90,
000Rupeesand15Rupeeson
4,
00,
000Rupeesandabov
eSum Assur
ed(
per1000r
upees)
.Loani
sappl
i
cabl
e

Page37
af
ter3mont
hsandt
hepol
i
cycanbesur
render
edatanyt
ime.Thi
spl
ani
s
av
ail
abl
eforonl
y90day
saf
teri
tsl
aunch.

 Jeev
anLakshy
a:

Thi
sisanon-
li
nkedpl
anwhi
chof
fer
sAnnualI
ncomebenef
itwhi
chhel
pst
oful
fi
ll
t
heneedsofaf
ami
l
yincaseofsuddendeat
hofPol
i
cyhol
derbef
oremat
uri
ty
andal
umpsum amountatMat
uri
tyr
egar
dlessoft
hel
i
feofPol
i
cyhol
der
.In
caseofdeat
hbef
oreMat
uri
ty,t
heDeat
hbenef
iti
spay
abl
e,whi
chi
sdef
inedas
t
headdi
ti
onofSum Assur
edonDeat
hal
ongwi
thSi
mpl
eRev
ersi
onar
yBonuses
andFi
nalAddi
ti
onalBonus.TheSum Assur
edonDeat
hisequalt
o Annual
I
ncomeBenef
it(
10%ofBasi
cSum Assur
ed)whi
chwi
l
lbepai
dfr
om t
hey
earof
deat
hofpol
i
cyhol
derunt
ily
earofMat
uri
tyandt
heAssur
edAbsol
uteAmount
whi
chi
spai
dondat
eofmat
uri
tyandi
s110%ofBasi
cSum Assur
edal
ongwi
th
Si
mpl
eRev
ersi
onar
yBonusandFi
nal
Addi
ti
onal
bonus.TheDeat
hbenef
itwi
l
lnot
bel
esst
han105%ofal
lthepr
emi
umspai
dti
l
ldat
eofdeat
hwhi
chexcl
udet
ax,
ext
rapr
emi
um andr
iderpr
emi
ums.

Theent
ryagei
s18-
50y
ear
swhi
l
ethemaxi
mum mat
uri
tyagei
s65y
ear
s.The
pol
i
cyt
ermr
angesbet
ween13-
25y
ear
s.Thepr
emi
um t
ermi
s(pol
i
cyt
erm-
3)
y
ear
s.Mi
nimum Sum Assur
edi
s1LakhRupees.Sum assur
edonMat
uri
tywi
l
lbe
pai
dal
ongwi
thSi
mpl
erev
ersi
onar
ybonusesandf
inaladdi
ti
onalbonusasa
l
umpsum ont
hecondi
ti
ont
hatnopr
emi
umsar
edue.Opt
ionalbenef
it
sincl
ude
LI
CAcci
dent
alDeat
handDi
sabi
l
ityBenef
itRi
derandLI
CNew Ter
m Assur
ance
Ri
der
.

 NewMoneyBackPl
an-20Year
s:

LI
CNew MoneybackPl
an-
20 y
ear
sof
fer
sfi
nanci
alpr
otect
ionagai
nstdeat
h
t
hroughoutt
het
erm aswel
lasper
iodi
cpay
mentatspeci
fi
eddur
ati
onsdur
ing
t
heper
iod.I
tpr
ovi
desf
inanci
alcov
erf
ort
hef
ami
l
yoft
hedeceasedpol
i
cy-
hol
der

Page38
unt
ilMat
uri
tyandl
umpsum amount(
40% ofBasi
cSum Assur
edal
ongwi
th
Si
mpl
eRev
ersi
onar
yBonusandFi
nalAddi
ti
onalBonus)att
het
imeofMat
uri
tyi
n
caseofsur
viv
al.TheDeat
hbenef
itpr
ovi
dedbyt
hispol
i
cyi
ncl
udest
heSum
Assur
edonDeat
h(hi
gheroneof125% ofBasi
cSum Assur
edor10t
imesof
annual
i
zed pr
emi
um)
along wi
th Si
mpl
e Rev
ersi
onar
y Bonuses and Fi
nal
Addi
ti
onalBonus.I
fthepol
i
cyhol
dersur
viv
est
il
ltheendofspeci
fi
edt
erm 20%
ofBasi
cSum Assur
edwi
l
lbepai
dateach5t
h,10t
hand15t
hyear
s.

Themaxi
mum ageatent
rymustbe30y
ear
swhi
l
ethemi
nimum mustbe15
y
ear
s.Thet
ermi
s20y
ear
s.Themi
nimum Sum Assur
edi
s1,00,
000Rupeesand
t
her
eisnomaxi
mum l
i
mit
.Themaxi
mum Mat
uri
tyagei
s70y
ear
s.Thepol
i
cy
hol
derwi
l
lgetashar
eint
hepr
ofi
tsoft
hecompanyt
hroughSi
mpl
eRev
ersi
onar
y
Bonusi
fthepol
i
cyi
srunni
ngpr
oper
ly.Fi
nalBonuswi
l
lbedecl
aredatt
het
imeof
cl
aimi
ngt
hepol
i
cyt
hroughdeat
hormat
uri
ty.I
ncaseofacci
dent
aldeat
h,an
opt
ionalr
idercal
l
ed Acci
dent
alDeat
h Benef
itr
idercan beopt
ed f
orwhi
ch
pr
ovi
dest
wicet
hesum assur
ed,
avai
l
abl
ewi
thpay
mentofRs.
100per1l
akhsum
assur
edev
eryy
ear
.

 NewBi
maBachat
:

I
tisasav
ingscum pr
otect
ionpl
anwhi
chi
snon-
li
nkedandpr
ovi
desf
inanci
al
pr
otect
ionagai
nstdeat
hofpol
i
cyhol
deral
ongwi
thpay
mentofsur
viv
albenef
it
s
atcer
tai
ndur
ati
onsdur
ingt
het
erm.Onr
eachi
ngMat
uri
tyt
hesi
ngl
epr
emi
um i
s
pai
dal
ongwi
thLoy
alt
yaddi
ti
on.Thi
spol
i
cyof
fer
sDeat
hBenef
itwhi
chi
sSum
Assur
edondeat
hbef
oref
ivepol
i
cyy
ear
sandSum Assur
edwi
thLoy
alt
yAddi
ti
on
af
tercompl
eti
onoff
ivepol
i
cyy
ear
s.Themaxi
mum agel
i
miti
s66y
ear
sfort
erm
of9y
ear
s,63y
ear
sfort
erm of12y
ear
sand60y
ear
sfort
erm of15y
ear
s.The
sum assur
edshoul
dbeami
nimum of35,
000Rupeesf
or9y
ear
s,50,
000Rupees
f
ort
erm of12y
ear
sand70,
000Rupeesf
ort
erm of15y
ear
s.TheMat
uri
tyagei
s
75y
ear
s

.Thesur
viv
albenef
iti
s15% ofSum Assur
edatendof3r
dand6t
hyearf
ora
pol
i
cyt
erm of9y
ear
s,att
heendof3r
d,6t
h,and9t
hyearf
orapol
i
cyt
erm of12
y
ear
sandatt
heendof3r
d,6t
h,9t
h,12t
hyearf
orpol
i
cyt
erm of15y
ear
s.The

Page39
Loy
alt
yaddi
ti
ondependsupont
hepar
ti
cipat
ionoft
hepol
i
cyhol
deri
nthepr
ofi
ts
oft
heCor
por
ati
onasdecl
aredbyi
t,af
tert
hepol
i
cyhascr
ossedami
nimum of5
y
ear
s.

5.
2Pr
oduct
sofI
CICIPr
udent
ial
Insur
anceCompany

Page40
 I
CICIPr
udent
ial
iCar
eIITer
m Li
feI
nsur
ance

I
CICIPr
uiCar
eIII
Iisanonl
i
net
ermi
nsur
ancepl
anwhi
chof
fer
shi
ghi
nsur
ance
cov
erataf
for
dabl
epr
emi
ums.Thi
sisapur
eri
skpr
otect
ionpl
anof
fer
ingi
nst
ant
l
i
fei
nsur
ancecov
erand i
sav
ail
abl
eforonl
i
nepur
chasewi
thoutanyagent
i
nter
vent
ion.I
CICIPr
uiCar
eIIhas2opt
ions–

Opt
ion1-wher
edeat
hbenef
iti
sequal
toSum Assur
edand

Opt
ion2-whi
chcomeswi
thanAcci
dent
alDeat
hBenef
itr
ider

KeyFeat
uresofi
Car
eIIPl
an

  Pur
eter
m pl
ant
hatcanbeboughtonl
i
ne
  Comeswi
thHi
ghnon-
medi
cal
li
mit
s
  Of
fer
sachoi
ceofacci
dent
aldeat
hbenef
itr
ider
  Taxbenef
it
sav
ail
abl
e

Benef
it
sunderi
Car
eIITer
m Pl
an

DeathBenef
it–Incaseofdeat hofthepoli
cyhol
der/lif
eassur
eddur
ingt
he
pol
icyt
erm,t
henomineeshal
lrecei
vet
hefol
lowingbenef
it
s-

Pl
anTy
pe Deat
hBenef
itpai
dtonomi
nee

i
Car
eIIOpt
ion1 Sum Assur
ed

Sum Assur
ed pl
us Acci
dent
alDeat
h
i
Car
eIIOpt
ion2
Benef
it

Int heAccidentalDeat h Benefi

trider
,an amountequalto sum assur
ed or
Rs.50,
00,000(whicheveri
sl ower)wil
lbepai
dtothenomineei
ncaseofdeat hof
thepoli
cyholderduetoanacci dent
.

Page41
  Matur
it
yBenefi
t–Ther
eisnomat
uri
tybenef
it
,pai
d-upv
alueorsur
viv
albenef
it
underi
CareI
I.

IncomeTaxBenefi
t– PremiumspaidunderaLi f
eInsurancepremiumsare
exemptedfr
om t
axabl
eincomeupt oRs.1,
00,
000undersect i
on80c.Amount
paidtonomi
neei
salsotax-
fr
eeaccor
dingt
osecti
on10(10D)oftheIncomeTax
Act.

El
i
gibi
l
itycondi
ti
onsandot
herr
est
ri
cti
onsi
niCar
eIIPl
an

  Mi
nimum Maxi
mum

Pol
i
cyTer
m(i
nyear
s) 5 30

Premium Pay
ment Ter
m (
in
Si
ngl
e Equal
topol
i
cyt
erm
year
s)

Ent
ryAgeofPol
i
cyhol
der 18 60

AgeatMat
uri
ty - 65

Pr
emi
um (
inRs.
) 2,
400 NoLi
mit

Pay
mentmodes Si
ngl
eandYear
ly

 I
CICIPr
udent
ial
iPr
otectTer
m pl
an

I
CICIPr
udent
iali
Prot
ecti
s a pur
eter
m i
nsur
ance pol
i
cywhi
ch of
fer
s hi
gh
cov
erageatl
ow andaf
for
dabl
epr
emi
ums.I
nsuchpol
i
cies,i
fthepol
i
cyhol
der
di
est
hent
henomi
neei
sgi
vent
hesum assur
ed.Howev
er,i
fthepol
i
cyhol
der
sur
viv
es t
he pol
i
cyt
erm t
hen he/
she does notgetanymoneyback.I
CICI
Pr
udent
iali
Prot
ecti
sat
ermi
nsur
ancepl
anwhi
chcanbepur
chasedont
he
i
nter
netandhencet
hepr
oducti
scheapert
hanmostoft
het
ermi
nsur
ancepl
ans

Page42
 i
nthemar
ket
.

KeyFeat
uresofI
CICIPr
udent
ial
iPr
otectTer
m pl
an

 Oneoft
hecheapestt
erm pl
ansi
nthemar
ket

 Pl
anhasanopt
ionofsum assur
edwi
thanaddi
ti
onaldeat
hbenef
itequalt
othe
basesum assur
edorRs.
50,
00,
000,
whi
chi
slower

 Thepl
anhasapaper
lesspr
ocessf
ornon-
medi
cal
cases

 I
tcanbepur
chasedonl
i
newi
thgr
eatconv
eni
ence

 Benef
it
syougetf
rom I
CICIPr
udent
ial
iPr
otectTer
m pl
an

Deat
hBenef
it–I
ncaseofdeat
hoft
hepol
i
cyhol
der
,thenomi
neeget
sthesum
assur
edundert
hepl
anopt
ionI
.Ift
hepol
i
cyhol
derav
ail
spl
anopt
ionI
I,t
hent
he
nomi
neeget
ssum assur
ed+acci
dent
aldeat
hbenef
it
.

Mat
uri
tyBenef
it–Ther
ear
enomat
uri
tybenef
it
sundert
hispl
an.

I
ncomeTaxBenef
it-
 Li
feI
nsur
ancepr
emi
umspai
dupt
oRs.1,
50,
000ar
e
al
l
owedasadeduct
ionf
rom t
het
axabl
eincomeeachy
earundersect
ion80C

 El
i
gibi
l
itycondi
ti
onsandot
herr
est
ri
cti
onsi
nICI
CIPr
udent
ial
iPr
otectTer
m pl
an

  Mi
nimum Maxi
mum

Sum Assur
ed(
inRs.
) Rs.
25,
00,
000 Rs.
1,00,
00,
000

Pol
i
cyTer
m(i
nyear
s) 10/15/20/25/30

Pr
emi
um Pay
ment
Equal
topol
i
cyt
erm Equal
topol
i
cyt
erm
Ter
m(i
nyear
s)

Ent
ry Age of
20 65
Pol
i
cyhol
der

AgeatMat
uri
ty - 75

Page43
Regul
arpr
emi
um Rs.
2,000 -

Si
ngl
epr
emi
um NA NA

Pay
mentmodes Year
ly,
Hal
f-
Year
ly,
Quar
ter
lyandMont
hly(
ECS)

 I
CICIPr
uAssur
edSav
ingsI
nsur
ancePl
an

I
CICIPr
uAssur
edSav
ingsI
nsur
ancePl
ani
sanon-
li
nkedi
nsur
ancepl
an.The
pl
anof
fer
sguar
ant
eedsav
ingsbenef
it
,tomeetcr
it
icalmi
l
est
onesl
i
kechi
l
d
educat
ion,mar
ri
ageorr
eti
rement
.Int
heev
entoft
heunf
ort
unat
edeat
hoft
he
pol
i
cyhol
derdur
ingt
hepol
i
cyt
erm,
Sum Assur
ed+Guar
ant
eedAddi
ti
onsi
spai
d
t
othenomi
nee.

KeyFeat
uresofI
CICIPr
uAssur
edSav
ingsI
nsur
ancePl
an

Guar
ant
eedAddi
ti
ons(
GA)–ev
eryy
ear
,9%or10%

Guar
ant
eedMat
uri
tyBenef
it(
GMB)–l
umpsum amountatendoft
hepol
i
cyt
erm

Fl
exi
bil
i
ty–t
ochoose,
premi
um pay
mentandpol
i
cyt
erm

TaxBenef
it
s-asperSect
ion80Cand10(
10D)oft
heI
ncomeTaxAct

Benef
it
syougetf
rom I
CICIPr
uAssur
edSav
ingsI
nsur
ancePl
an

Deat
hBenef
it–I
ncaseofdeat
hoft
heLi
feI
nsur
ed,t
henomi
neewoul
dgett
he
hi
gheroft
hebel
ow:

Sum Assur
edpl
usaccr
uedGA

GMB+accr
uedGA

Mat
uri
tyBenef
it=GA+GMB

Page44
 Wher
e,

GA wi
l
lbe added t
othe pol
i
cyatt
he end oft
he ev
erypol
i
cyy
ear
.GA =
Guar
ant
eedr
ate*t
otalpr
emi
umspai
dti
l
ldat
e.GAr
atedependsupont
hepol
i
cy
Ter
m chosen–For10y
ear
sGAi
s9%andf
or12y
ear
sit
s10%

 I
CICIPr
uEasyRet
ir
ementPl
anRev
iew

I
CICIPr
udent
ial
EasyRet
ir
ementpl
ani
sauni
t-
li
nkedi
nsur
ancepl
an,
desi
gnedt
o
t
akecar
eofpostr
eti
rementi
ncome.Thepr
oducthel
pst
obui
l
dthecor
pusasper
pol
i
cyhol
derr
iskappet
it
e,s/
hepay
sthepr
emi
um f
ormaxi
mum 10y
ear
s,and
r
eapt
hebenef
it
sdur
ingt
hei
ncomephase,
thr
oughanyoft
hev
est
ingageopt
ion.
I
tal
sot
akescar
eofmar
ketv
olat
il
it
ythr
oughanassur
edbenef
it
.

 Howdoest
hePl
anwor
k?

Thepl
anpassest
hrough2phases,
elabor
atedbel
ow:
Accumul
ati
onPhase–i
nthi
sphases/
hepay
spr
emi
um f
ort
hechosenpr
emi
um
t
erm andaccumul
atet
hef
undsf
orr
eti
rement
.Whi
l
e,t
heanxi
etyofmar
ket
v
olat
il
it
yist
akencar
ethr
oughanassur
edbenef
it
.

I
ncomePhase–s/
hecanchoosev
est
ingagef
rom anyoft
hebel
owopt
ions– 

 Regul
arI
ncome–Pur
chaseanannui
tywi
tht
heaccumul
atedv
alueandr
ecei
ve
r
egul
ari
ncome.

 Commut
ati
onPl
usRegul
arI
ncome–r
ecei
vel
umpsum amountupt
oonet
hir
d
ofaccumul
atedamountandt
hebal
ancecanbeusedt
obuyt
heannui
ty.

 Post
ponementofv
est
ingage–Fl
exi
bil
i
tyt
ochanget
hepay
-outdat
e,pr
ovi
ded
s/
hei
sbel
ow55y
ear
s.

 I
nvesti
nasi
ngl
epr
emi
um def
err
edpensi
onpr
oduct– uset
heaccumul
ated

Page45
 amountt
opur
chaseI
nvesti
nasi
ngl
epr
emi
um def
err
edpensi
onpr
oduct
.

 KeyFeat
uresofI
CICIPr
uEasyRet
ir
ementPl
an 

 Assur
edBenef
it–anxi
etyofmar
ketv
olat
il
it
ytakencar
eof
f

 Pr
emi
um Fl
exi
bil
i
ty-Opt
iont
opaypr
emi
umsf
orf
iveort
eny
ear
sort
hroughout
t
hepol
i
cyt
erm

 Annui
tyopt
ions–Fl
exi
bil
i
tyt
osel
ectv
est
ingage

 Pensi
onBoost
ers–t
oenhancecor
pus

 Topup–addi
ti
onal
sav
ingst
oboostt
hef
undv
alue

Benef
it
syougetf
rom I
CICIPr
uEasyRet
ir
ementPl
an

Deat
hBenef
it–I
ncaseofdeat
hoft
hepol
i
cyhol
der
,hi
gheroft
hebel
owwi
l
lbe
pai
dtot
henomi
nee:

 Guar
ant
eedDeat
hBenef
it

 Fundv
alue

Wher
e, 
-Guar
ant
eedDeat
hBenef
iti
s105%oft
hepr
emi
umspai
dti
l
ldat
e
-I
fthepol
i
cyst
atusi
sdi
scont
inuedpol
i
cydur
ingt
hedeat
h,t
henonl
yfundv
alue
wi
l
lbepai
d.

Assur
edBenef
it–I
ncaseofMat
uri
ty,
thepol
i
cyhol
derwi
l
lgethi
gherofAssur
ed
Benef
itorFundVal
ue.Assur
edBenef
it=101%oft
he(
sum ofpr
emi
umspai
dand
t
opups,
ifany
).

Pensi
onBoost
ers–Oncompl
eti
onof5t
h&10t
hpol
i
cyy
ear
,guar
ant
eedpensi
on
boost
ers,
wil
lbeal
l
ocat
edbet
weenEasyRet
ir
ementBal
ancedFundandEasy
Ret
ir
ementSecur
edFund,
at5%ofdai
l
yfundv
alue.

Page46
 I
ncr
easeanddecr
easeofpol
i
cyTer
m –s/
hecanoptf
ort
hisf
aci
l
itypr
ovi
dedal
l
t
hepr
emi
umsar
epai
dti
l
ldat
e.

I
ncomeTaxBenef
it-Li
feI
nsur
ancepr
emi
umspai
dupt
oRs.1,
50,
000ar
e
al
l
owedasadeduct
ionf
rom t
het
axabl
eincomeeachy
earundersect
ion80C

El
i
gibi
l
itycondi
ti
onsi
nICI
CIPr
uEasyRet
ir
ementPl
an

Par
ti
cul
ars Mi
nimum Maxi
mum

Ent
ryAge(
iny
ear
s) 35 70

Vest
ingAge(
iny
ear
s) 45 80

Pr
emi
um (
inRs.
) 48,
000 Unl
i
mit
ed

Pr
emi
um Pay
ment Ter
m (
in
5,
10orequal
topol
i
cyt
erm
y
ear
s)

Pol
i
cyTer
m(i
nyear
s) 10,
15,
20,
25,
30

Pr
emi
um Pay
mentmodes Year
ly/Hal
fyear
ly/Mont
hly

 I
CICIPr
uCashAdv
ant
agePl
anRev
iew

I
CICIPr
uCashAdv
ant
agePl
ani
sanon-
li
nkedi
nsur
ancepl
an.Thepl
anof
fer
s
guar
ant
eedamountev
erymont
hfor10y
ear
s,aguar
ant
eedl
umpsum amountat
mat
uri
ty,al
ong wi
th bonuses.I
ntheev
entoft
heunf
ort
unat
edeat
h oft
he
pol
i
cyhol
derdur
ingt
hepol
i
cyt
erm,
Sum Assur
ed+Guar
ant
eedAddi
ti
onsi
spai
d
t
othenomi
nee.

KeyFeat
uresofI
CICIPr
uCashAdv
ant
agePl
an

 Li
qui
dit
y–t
hroughi
mmedi
atepayout

Page47
 Guar
ant
eedMat
uri
tyBenef
it(
GMB)–l
umpsum payout 

 Guar
ant
eedCashBenef
it(
GCB)–1%ofGMB,
ever
ymont
h,f
or10y
ear
s

 Li
mit
edPr
emi
um Pay
ingTer
m –5,
7,or10y
ear
s

Benef
it
syougetf
rom I
CICIPr
uCashAdv
ant
agePl
an

Deat
hBenef
it–I
ncaseofdeat
hoft
heLi
feI
nsur
ed,i
rr
espect
iveofGCBpai
d
dur
ingt
het
enur
e,t
henomi
neewoul
dgethi
gheroft
hebel
ow:

 Sum Assur
ed+Bonuses

 GMB+Bonuses

 Mi
nimum Deat
hBenef
it

Wher
e,
Mi
nimum Deat
hBenef
it
,is105%ofpr
emi
umspai
dti
l
ldat
es

CashBenef
it-Thr
oughoutt
hepay
-outt
erm,
GCBi
spay
abl
einadv
ance,
ift
hel
i
fe
assur
edi
sal
i
veandt
hepol
i
cyi
sful
l
ypai
d.GCBcanber
ecei
vedi
nmont
hlyor
annuali
nst
alment
s.GCB i
saper
cent
ageoft
heGuar
ant
eedMat
uri
tyBenef
it
(
GMB)anddependsoncashbenef
itmodeasshownbel
ow:

CashBenef
itMode Guar
ant
eedCashBenef
it(
GCB)

Mont
hly 1%

Annual 11.
5%

Page48
 I
CICIPr
uSav
ingsSur
akshaPl
anRev
iew

I
CICIPr
uSav
ingsSur
akshaI
nsur
ancePl
ani
sanon-
li
nkedi
nsur
ancepl
an.The
pl
anof
fer
sguar
ant
eedmat
uri
tybenef
it-t
omeetf
inanci
alneedsl
i
kebuy
inga
house,
chi
l
dren’
seducat
ion,
dream v
acat
ionandpeacef
ulr
eti
rement
.Int
he
ev
entoft
heunf
ort
unat
edeat
hoft
hepol
i
cyhol
derdur
ingt
hepol
i
cyt
erm,
Sum
Assur
ed+Guar
ant
eedAddi
ti
onsi
spai
dtot
henomi
nee.
 

KeyFeat
uresofI
CICIPr
uSav
ingsSur
akshaPl
an

Guar
ant
eedAddi
ti
ons(
GA)–ev
eryy
ear5%Guar
ant
eedMat
uri
tyBenef
it(
GMB)
–
l
ump sum amountatend oft
he pol
i
cy t
erm Vest
ed Rev
ersi
onar
y Bonus
/
Ter
minalBonus–i
fanyFl
exi
bil
i
ty–t
ochoose,pr
emi
um pay
ment
,pol
i
cyt
erm,
sum assur
ed.

Benef
it
syougetf
rom I
CICIPr
uSav
ingsSur
akshaPl
an

Deat
hBenef
it–I
ncaseofdeat
hoft
heLi
feI
nsur
ed,t
henomi
neewoul
dgett
he
hi
gheroft
hebel
ow:

 Sum Assur
edpl
usaccr
uedGAandBonuses

 GMB+accr
uedGA+Bonuses

Page49
 CHAPTER6

TAXBENEFI
TS

6.
1TaxBenef
it
sfr
om LI
C

Whatar
eLi
cPol
i
cyTaxBenef
it
s

Li
cPol
i
cyTaxBenef
it
sar
eav
ail
abl
eformostoft
heLi
cInsur
ancePl
ans.Manyof
t
heLi
feI
nsur
ancePl
ansgi
vesy
ouanaddi
ti
onaladv
ant
ageofLi
cPol
i
cyTax
Benef
it
s.I
ncomet
axr
atesi
ncr
easesal
ongwi
tht
hei
ncr
easei
nyourI
ncome.You
cansav
eyour
 har
dear
nedmoney
 byi
nvest
ingi
tint
heLi
cInsur
ancePl
ans.Ther
e
ar
emanypl
answi
thLi
cpol
i
cyTaxBenef
it
s.Fr
om t
hosef
indt
hebestLi
cPol
i
cy
f
orTaxBenef
it
.

I
nmostoft
heLi
cInsur
ancePl
ans,Li
cPol
i
cyTaxBenef
it
sar
eav
ail
abl
efort
he
pr
emi
umsy
oupai
d.Cont
ri
but
iont
owar
dsl
i
cpol
i
cyi
sal
l
owedasdeduct
ioni
n
i
ncomeunder
 Exi
sti
ngI
ncomeTaxLaws.
 Thati
syounotonl
ypr
ovi
def
inanci
al
secur
it
ytoy
ourf
ami
l
y i
ntheunf
ort
unat
eev
ent
,butal
sor
eapt
heLi
cPol
i
cyTax
benef
it
s f
rom Li
ctaxsav
ingpl
anst
hroughpr
emi
um cont
ri
but
ioni
nULI
Ps.

Page50
 I
ncomeSl
abs Tax
Rates

Indi
vi
dual
80y
ear
sofage  
I
ndi
vi
dual&HUFbelowage Indi
vi
dual
60yearsofage andmore
of60year
s andmorebutl
essthan80
year
s

I
ncomeupt
oRs.
2,00,
000 I
ncomeupt
oRs.
2,50,
000 I
ncomeupt
oRs.5,
00,
000
NI
L

Rs.
2,00,
001t
oRs.
5,00,
000 Rs.
2,50,
001t
oRs.
5,00,
000
— 10%

 
Rs.5,
00,001 to  Rs.
5,00,
001 t
o  Rs.
5,00,
001 t
o 
Rs.
10,00,000 Rs.
10,00,
000 Rs.
10,00,
000 20%

Abov
eRs.
10,
00,
001 Abov
eRs.
10,
00,
001 Abov
eRs.
10,
00,
001
30%

Sur
char
geCess:I
ncaset
heper
sonscov
eredunderabov
ecat
egor
ieshav
ingan
i
ncomeof1cr
orer
upees,
 
thet
axascal
cul
atedabov
ewi
l
lbei
ncr
easedbya
sur
char
geatt
her
ateof10% 
ofsuchi
ncome-t
ax.

Educat
ionCess:Educat
ionCessi
sanaddi
ti
onalsur
char
gel
evi
edatt
her
ateof
t
wopercentont
heamountofI
ncomet
axi
nal
lcasesshal
lbel
evi
ed.

Secondar
yandHi
gherEducat
ionCess:
 
Secondar
yandHi
gherEducat
ionCessi
s
al
soanaddi
ti
onalsur
char
geoni
ncomet
axatt
her
ateof
 1%ofi
ncome-
taxand
sur
char
ge(
wher
e“Educat
ionCess 
onI
ncome–t
ax”i
snoti
ncl
uded)i
nal
lcases
shal
lbe 
l
evi
ed.

LI
C Pol
i
cyTaxBenef
it
sav
ail
abl
eunderv
ari
ouspl
ansofLi
feI
nsur
ancear
e

Page51
hi
ghl
i
ght
edbel
ow:

1.LI
CPol
i
cyTaxBenef
it
s:Deduct
ional
l
owabl
efr
om I
ncomef
orpay
mentof
Li
feI
nsur
ancePr
emi
um (
Sec.80C)
.

LI
CPol
i
cyTaxbenef
it
sunderSect
ion80Car
e,

(
a)Pr
emi
um pai
dinor
dert
okeepi
nfor
ceani
nsur
anceont
hel
i
feoft
he
assessee/Spouse/anychi
l
dandi
nthecaseofHUF,
underani
nsur
ancepol
i
cy,
st
(
othert
hanacont
ractf
oradef
err
ed 
annui
ty)
 i
ssued 
onorbef
ore31  Mar
ch
2012shal
lbeel
i
gibl
efordeduct
iont
otheext
entof20%oft
heact
ualcapi
talSA
(
sum assur
ed)
.

(
b)Pr
emi
um pai
dinor
dert
okeepi
nfor
ceani
nsur
anceont
hel
i
feoft
he
assessee/Spouse/anychi
l
dandi
nthecaseofHUF,
underani
nsur
ancepol
i
cy,
(
othert
hanacont
ractf
oradef
err
ed 
annui
ty)
 i
ssued 
onoraf
ter
 1st Apr
il
 2012
shal
lbeel
i
gibl
efordeduct
iont
otheext
entof10%oft
heact
ualcapi
talSA(
sum
assur
ed)
.

Wher
east
hepol
i
cyi
ssuedonoraf
ter1stApr
il2013f
or,

(
i)A per
sonwi
thsev
eredi
sabi
l
ity/aper
sonwi
thdi
sabi
l
ity
 asr
efer
redt
oin
sect
ion80U,
or

(
ii
)Anyper
sonwhoi
ssuf
fer
ingf
rom ai
l
mentordi
seaseasment
ionedi
nthe
r
ulesmadeunderSec80DDB.Deduct
ionundersect
ion80DDBi
stot
heext
entof
15%oft
heact
ual
capi
tal
SA.

(
c) 
Cont
ri
but
iont
odef
err
edannui
tyPl
ans 
i
nor
dert
okeepi
nfor
ceacont
ractf
or
def
err
edannui
ty, 
onhi
sownl
i
fe/spouse/anychi
l
d,pr
ovi
dedsuchcont
ract
doesn’
tcont
ainapr
ovi
siont
oexer
ciseanopt
ionbyt
hei
nsur
edt
orecei
veacash
pay
menti
nli
euoft
hepay
mentofannui
tyi
sel
i
gibl
efordeduct
ion.

(
d)Cont
ri
but
iont
oAnnui
tyPl
ansl
i
keNewJeev
anDhar
a, 
NewJeev
anDhar
a–I
&Jeev
anAkshay
a–VI
.

Page52
 2.LI
CPol
i
cyTaxbenef
it
sforJeev
anNi
dhiPl
anandNewJeev
anSur
aksha–
IPl
an(
Undersec.u/
s80CCC)

Li
cPol
i
cyTaxBenef
it
sunderSect
ion80CCCar
e,

Adeduct
iont
oani
ndi
vi
dualf
oranyamountpai
dbyhi
mfr
om hi
staxabl
eincome
i
ntheabov
eannui
typl
ansf
orr
ecei
vi
ngpensi
on(
from t
hef
undsetupbyt
he
Cor
por
ati
onundert
hePensi
onScheme)i
sal
l
owed.

Not
e:Undersect
ion 80C,80CCC and 80CCD(
1)t
he aggr
egat
e amountof
deduct
ionshal
lnoti
nanycaseexceed1l
ac.Howev
er,t
her
eisnosect
oralcap.
Thati
sthel
i
mitofRs.OneLakhcanbeexhaust
edbypay
ingpr
emi
um underany
oft
hesai
dsect
ions.

3. Li
cPol
i
cyTaxBenef
it
s:Deduct
ionundersect
ion80D

Li
cPol
i
cyTaxBenef
it
sunderSect
ion80Dar
e,

(
a)Deduct
ional
l
owabl
eupt
oRs.15,
000 
i
fyoupai
danamountt
okeepi
nfor
ce
ani
nsur
anceonheal
thofassessee/
 hi
sfami
l
y/ 
anycont
ri
but
ionmadet
othe
cent
ralGov
ernmentHeal
thScheme/
 onaccountofheal
thcheckupoft
he
assesseeorhi
sfami
l
y.

(
b)Addi
ti
onal
deduct
ionupt
oRs.15000i
fyoupai
danamountt
okeepi
nfor
cean
i
nsur
anceonheal
thofpar
ent
s/ 
onaccountofheal
thcheckupoft
hepar
entof
t
heassessee,
whet
herdependentornot
.

(
c)I
ncaseofHUF(
HinduUndi
vi
dedf
ami
l
y),
 deduct
ioni
sal
l
owabl
eupt
oRs.
15000i
fanamounti
spai
dtokeepi
nfor
ceani
nsur
anceonheal
thofany
memberoft
hatHUF.

(
d)Deduct
ionwi
l
lbeupt
oRs.20000,
ift
hesum speci
fi
edi
n(a)/(
b)/(
c)i
spai
d
t
okeepi
nfor
ceani
nsur
anceont
heheal
thofanyper
sonspeci
fi
edt
her
einwhoi
s
aseni
orci
ti
zen(
theper
sonwhoi
sof60 
year
sormor
edur
ingt
hepr
evi
ousy
ear
)

(
e)I
f 
theamount
sar
epai
din(
a)or(
b)or(
c)onaccountofpr
event
iveheal
th

Page53
 checkup,t
he 
deduct
ionshal
lbeal
l
owedt
otheext
enti
tdoesnotexceedi
n
aggr
egat
eRs.5000.

(
f)Fort
hededuct
ionpur
pose,
thepay
mentshal
lbemadeby

i
.Anymode,
incl
udi
ngcash.I
nrespectofanysum pai
donaccountofpr
event
ive
heal
thcheck–up.

i
i
.Anymodeot
hert
hancashi
nal
lot
hercases.

g)Thei
nsur
anceasment
ionedabov
eshal
lbei
naccor
dancewi
tht
hescheme
f
ramedby

i
.The Gener
alI
nsur
ance Cor
por
ati
on ofI
ndi
a as appr
oved byt
he Cent
ral
Gov
ernmenti
nthi
sbehal
for
;

i
i
.Anyot
heri
nsur
erandappr
ovedbyt
heI
nsur
anceRegul
ator
yandDev
elopment
Aut
hor
it
y.

4.  
Licpol
i
cyTaxBenef
it
s:Jeev
anAadharPl
an(
Sec.
80DD):

Li
cPol
i
cyTaxBenef
it
sunderSect
ion80DDar
e,

 Deduct
ionf
rom t
otali
ncomeupt
oRs.
50000/
-al
l
owabl
eonamountdeposi
ted
wi
thLI
Cformai
ntenanceofanhandi
cappeddependent
.

 Rs.
1,00,
000/
-wher
ehandi
cappeddependenti
ssuf
fer
ing 
fr
om sev
eredi
sabi
l
ity
.

5. Li
cPol
i
cyTaxBenef
it
s:Exempt
ioni
nrespectofcommut
ati
onofpensi
on
underJeev
anSur
aksha&Jeev
anNi
dhi
Plans:

Li
cPol
i
cyTaxBenef
it
s–UnderSect
ion10(
10A)(
ii
i)oft
heI
ncome-
taxAct
,any
pay
mentr
ecei
ved bywayofcommut
ati
ons ofpensi
on outoft
he Jeev
an
Sur
aksha&Jeev
anNi
dhi
Annui
typl
ansi
sexemptf
rom t
axbenef
it
s.

6. Li
cPol
i
cyTaxBenef
it
s:I
ncomet
axexempt
iononMat
uri
ty/
Deat
hCl
aims
pr
oceedsunderSect
ion10(
10D)

Li
cPol
i
cyTaxBenef
it
sunderSect
ion10(
10D)ar
e,

Page54
AsperSect
ion10(
10D)oft
heI
ncomeTaxAct
,1961,anysum r
ecei
vedundera
Li
feI
nsur
ance,i
ncl
udi
ngt
hesum al
l
ocat
edbywayofbonusonsuchpol
i
cyi
s
exemptf
rom Li
cPol
i
cyt
axbenef
it
swher
ethesum i
srecei
vedasadeat
hbenef
it
.

Howev
er,t
ogetexempt
ionunderabov
esect
ionf
orsum r
ecei
vedot
hert
han
deat
hbenef
it
,

i
)Insur
anceshal
lnotbei
ssuedunderSect
ion80DD(
3),
or

i
i
)Insur
anceshal
lnotbei
ssuedasaKey
manPol
i
cy,
or

i
i
i)Pol
i
cywhi
chhasbeeni
ssuedonoraf
ter1stApr
il
,2003andi
fthepr
emi
um
pai
dinanyoft
hey
ear
sdur
ingt
hepol
i
cyt
erm shal
lnotexceed20%oft
heAct
ual
Capi
tal
SA.

i
v)Pol
i
cywhi
chhasbeeni
ssuedonoraf
ter1stApr
il
,2012andi
fthepr
emi
um
pai
dinanyoft
hey
ear
sdur
ingt
hepol
i
cyt
erm shal
lnotexceed10%oft
heAct
ual
Capi
tal
SA.

Wher
east
hepol
i
cyi
ssuedonoraf
ter1stApr
il2013f
or,

(
i)A per
sonwi
thsev
eredi
sabi
l
ity/aper
sonwi
thdi
sabi
l
ity
 asr
efer
redt
oin
sect
ion80U,
or

(
ii
)Anyper
sonwhoi
ssuf
fer
ingf
rom ai
l
mentordi
seaseasment
ionedi
nthe
r
ulesmadeunderSec80DDB.Deduct
ionundersect
ion80DDBi
stot
heext
entof
15%oft
heact
ual
capi
tal
SA.

6.
2TaxBenef
it
sfr
om I
CICIPr
udent
ial
Insur
anceCompany

TaxBenef
it
sonI
nsur
anceandPensi
on

Li
fei
nsur
anceandr
eti
rementpl
ansar
eef
fect
iveway
stosav
etaxeswhendoi
ng
y
oury
earendt
axpl
anni
ng.
Toassi
sty
oui
ntaxpl
anni
ng,
thet
axbr
eakst
hatar
eav
ail
abl
eunderourv
ari
ous
i
nsur
anceandpensi
onpol
i
ciesar
edescr
ibedbel
ow:

Page55
 Ourl
i
fei
nsur
ancepl
ansar
eel
i
gibl
efort
axdeduct
ionunderSec.80C.
 OurPensi
onpl
ansar
eel
i
gibl
eforat
axdeduct
ionunderSec.80CCC.
 Ourheal
thi
nsur
ancepl
ans/
ri
der
sar
eel
i
gibl
efort
axdeduct
ionunderSec.
80D.
 Thepr
oceedsorwi
thdr
awal
sofourl
i
fei
nsur
ancepol
i
ciesar
eexempt
underSec10(
10D)
,subj
ectt
onor
mspr
escr
ibedi
nthatsect
ion.

I
nvesti
nICI
CIPr
udent
ial
Lif
einsur
anceandr
eti
rementpl
ansandav
ail
oft
hese
t
axpl
anni
ngser
vicest
osav
etaxaty
oury
earendt
axpl
anni
ng!

Expl
anat
ionOfTaxBenef
it
s

1.Pr
emi
umspai
dforLi
fei
nsur
ance-Deduct
ionunderSect
ion80C

 Cat
egor
yofassessesal
l
oweddeduct
ion:
Indi
vi
dual
assesseeandHi
ndu
Undi
vi
dedFami
l
yassessee.
 El
i
gibl
eSav
ings:
Premi
umspai
dordeposi
tedbyassesseet
oef
fectort
o
keepi
nfor
cei
nsur
anceont
hel
i
feoff
oll
owi
ngper
sons:
 I
ncaseofi
ndi
vi
dual
assesseeHi
msel
f/Her
sel
f,spouse,
chi
l
drenofsuch
i
ndi
vi
dual
 I
ncaseofHUFassesseeanymember
 20%l
i
mit
:Ift
heamountofpr
emi
um pai
dinaf
inanci
aly
earf
orapol
i
cyi
s
i
nexcessof20%oft
heact
ual
capi
tal
sum assur
ed,
thendeduct
ionwi
l
lbe
al
l
owedonl
yforpr
emi
umsupt
o20%oft
hesum assur
ed.
 Li
mitonamountofdeduct
ion:
Deduct
ionwi
l
lber
est
ri
ctedt
oinv
est
ment
s
upt
oRs100,
000i
nsav
ingsspeci
fi
edunderSect
ion80C(
incl
udi
ngl
i
fe
i
nsur
ancepr
emi
ums)
.Thel
i
mitofdeduct
ionunderSect
ion80Cwi
l
lbe
par
toft
heov
eral
ll
imi
tpr
escr
ibedunderSect
ion80CCE.
 Di
sal
l
owance:
Thi
sbenef
itwi
l
lber
ever
sedi
fthepol
i
cyi
s
t
ermi
nat
ed/
ceaset
obei
nfor
cewi
thi
n2y
ear
saf
tert
hedat
eof
commencementofpol
i
cy.

Page56
2.Pr
emi
umspai
dforPensi
onpl
ans-Sect
ion80CCC

 Per
mit
tedDeduct
ion:Sect
ion80CCCal
l
owsf
ordeduct
ionofpr
emi
ums
pai
dunderapensi
onscheme.Aspert
hisSect
ion,t
hewhol
eofamount
pai
dordeposi
ted(
excl
udi
ngi
nter
estorbonusaccr
uedorcr
edi
tedt
othe
assessee’saccount
,ifany
)asdoesnotexceedt
heamountofRs
100,
000i
sel
i
gibl
efordeduct
ionf
rom t
het
otal
income.

 Recei
ptunderPol
i
cy:Amount
srecei
vedonsur
render(
whol
e/par
t)of
annui
typl
an,
amount
srecei
vedasPensi
oni
staxedasi
ncome.

 Li
mit
:Thel
i
mitofdeduct
ionunderSect
ion80CCCwi
l
lbepar
toft
he
ov
eral
ll
imi
tpr
escr
ibedunderSect
ion80CCE.

3.Ov
eral
ldeduct
ionl
i
mit-Sect
ion80CCE

Aspert
hissect
ion,t
hemaxi
mum amountofdeduct
iont
hatanassessee
cancl
aim underSect
ions80C,80CCCand80CCDwi
l
lbel
i
mit
edt
oRs
100,
000.

4.Pr
emi
umspai
dformedi
cal
insur
ance-Sect
ion80D

 Cat
egor
yofassesses al
l
owed deduct
ion:I
ndi
vi
dualassessee and
Hi
nduUndi
vi
dedFami
l
yassessee.

 El
i
gibl
epr
emi
ums:Pr
emi
umspai
dbyassesseebyanymodeot
her
t
hancashoutofhi
staxabl
eincomet
oef
fectort
okeepi
nfor
cean
i
nsur
anceont
heheal
thoff
oll
owi
ngper
sons:

 I
ncaseofi
ndi
vi
dualassesseeHi
msel
f/Her
sel
f,spouse,dependent
chi
l
drenandpar
entorpar
ent
s.Thecondi
ti
onofdependencyofpar
ent
hasbeenr
emov
edf
rom FY2008-
09.I
not
herwor
ds,ev
eni
fthepar
ent
i
sindependent
,thei
ndi
vi
dualcanpayt
hepr
emi
um andcl
aim t
he
deduct
ion.

 Deduct
ionandupperl
i
mit
:Thequal
i
fyi
ngamount
sunderSect
ion80D

Page57
f
orsel
f,spouseanddependentchi
l
dreni
supt
o Rs.15,
000/
-and
addi
ti
onaldeduct
ionupt
o Rs.15,
000/
-fort
hepar
ent
s.Howev
er,a
hi
gheramountofupt
o Rs20,
000/
-isper
mit
tedi
ftheper
son,f
or
whoseheal
thi
nsur
ancet
hepr
emi
um waspai
d,wasaged65y
ear
sor
mor
eatanyt
imedur
ingt
hef
inanci
aly
eari
nwhi
cht
hepr
emi
um was
pai
d.Suchamount
sofpr
emi
um pai
dwoul
dbeal
l
owedasdeduct
ion
f
rom t
het
otal
incomeoft
heassessee.

Page58
 CHAPTER7

SWOTANALYSI
S

7.
1Int
roduct
ion

SWOT anal
ysi
s(al
ter
nat
ivel
y SWOT mat
ri
x)i
s an i
nit
ial
i
sm f
orst
rengt
hs,
weaknesses,oppor
tuni
ti
es,andt
hreat
s—andi
sast
ruct
uredpl
anni
ngmet
hod
t
hatev
aluat
est
hosef
ourel
ement
sofapr
ojectorbusi
nessv
ent
ure.ASWOT
anal
ysi
scanbecar
ri
edoutf
orapr
oduct
,pl
ace,i
ndust
ry,orper
son.I
tinv
olv
es
speci
fyi
ngt
heobj
ect
iveoft
hebusi
nessv
ent
ureorpr
ojectandi
dent
if
yingt
he
i
nter
nalandext
ernalf
act
orst
hatar
efav
orabl
eandunf
avor
abl
etoachi
evet
hat
obj
ect
ive.Someaut
hor
scr
edi
tSWOTt
oAl
ber
tHumphr
ey,whol
edaconv
ent
ion
att
heSt
anf
ordResear
chI
nst
it
ute(
nowSRII
nter
nat
ional
)int
he1960sand1970s
[
1][
2]
usi
ngdat
afr
om For
tune500compani
es. Howev
er,Humphr
eyhi
msel
fdoes
notcl
aimt
hecr
eat
ionofSWOT,andt
heor
igi
nsr
emai
nobscur
e.Thedegr
eet
o
whi
ch t
he i
nter
nalenv
ironment of t
he f
ir
m mat
ches wi
tht
he ext
ernal
env
ironmenti
sexpr
essedbyt
heconceptofst
rat
egi
cfi
t.

 St
rengt
hs:char
act
eri
sti
csoft
hebusi
nessorpr
ojectt
hatgi
vei
tanadv
ant
age
ov
erot
her
s

 Weaknesses:char
act
eri
sti
cst
hatpl
acet
hebusi
nessorpr
ojectatadi
sadv
ant
age
r
elat
ivet
oot
her
s

 Oppor
tuni
ti
es:el
ement
sthatt
he busi
ness orpr
ojectcoul
d expl
oitt
oit
s
adv
ant
age

 Thr
eat
s:el
ement
sint
heenv
ironmentt
hatcoul
dcauset
roubl
efort
hebusi
ness
orpr
oject

I
dent
if
icat
ionofSWOTsi
simpor
tantbecauset
heycani
nfor
mlat
erst
epsi
n
pl
anni
ngt
oachi
evet
heobj
ect
ive.Fi
rst
,deci
sionmaker
sshoul
dconsi
derwhet
her

Page59
t
heobj
ect
ivei
sat
tai
nabl
e,gi
vent
heSWOTs.I
ftheobj
ect
ivei
snotat
tai
nabl
e,
t
heymustsel
ectadi
ff
erentobj
ect
iveandr
epeatt
hepr
ocess.

User
s ofSWOT anal
ysi
s mustask and answerquest
ions t
hatgener
ate
meani
ngf
uli
nfor
mat
ionf
oreachcat
egor
y(st
rengt
hs,
weaknesses,
oppor
tuni
ti
es,
andt
hreat
s)t
omaket
heanal
ysi
susef
ulandf
indt
hei
rcompet
it
iveadv
ant
age.

7.
2SWOTAnal
ysi
sofLI
C

SWOT Anal
ysi
s of Li
feI
nsur
ance Cor
por
ati
on of I
ndi
a(LI
C) wi
th USP,
Compet
it
ion,
STP(
Segment
ati
on,
Tar
get
ing,
Posi
ti
oni
ng)-Mar
ket
ingAnal
ysi
s.

Li
feI
nsur
anceCor
por
ati
onofI
ndi
a(LI
C)

Par
entCompany Gov
ernmentofI
ndi
a

Cat
egor
y I
ndi
a’
sLar
gestLi
feI
nsur
anceCompany

Sect
or I
nsur
anceandf
inance

Tagl
i
ne/Sl
ogan Yogakshemam Vahamy
aham (
Your wel
far
e i
s our
r
esponsi
bil
i
ty)

USP NBFC

STP

Segment Per
sonal
andGr
oupI
nsur
ance

Tar
getGr
oup Ur
banandRur
alI
nvest
ors

Posi
ti
oni
ng Compl
eteI
nsur
anceandf
inanci
alsol
uti
ons

SWOTAnal
ysi
s

Page60
 St
rengt
hs 1.Lar
gestst
ate-
ownedl
i
fei
nsur
ancecompanyi
nIndi
a,and
al
sot
hecount
ry'
slar
gesti
nvest
or
2.Hasov
er2000br
anchesacr
ossal
lpar
tsofI
ndi
aandmor
e
t
han10,
00,
000agent
s.
3.Wi
thLar
gestf
undbasei
tist
hebi
ggesti
nvest
ori
nIndi
a
4.Hasov
er115,
000empl
oyeesacr
ossI
ndi
a
5.Accor
dingt
oTheBr
andTr
ustRepor
t,LI
Cist
he8t
hmost
t
rust
edbr
andofI
ndi
a
6.LI
Chassubsi
diar
iesl
i
keLI
CHousi
ngFi
nanceLi
mit
ed,
LIC
Car
dsSer
vicesLi
mit
ed,
LICNomur
aMut
ual
Fund,
LI
C(Nepal
)Lt
d,
LI
C(Lanka)
Ltd,
LIC(
Int
ernat
ional
)BSC(
C)

Weaknesses 1.I
thasani
mageofaGov
ernmentagencyandhencel
acks
i
nnov
ati
on
2.Bei
ng a Gov
ernmentagency
,red t
apeand bur
eaucr
acy
causespr
obl
ems
3.Managi
ngahugewor
kfor
cedur
ingeconomi
ccr
isi
smeant
ov
erbur
denedduet
osal
ari
es

Oppor
tuni
ti
es 1.UseofTechnol
ogyt
opr
ovi
deef
fect
iveser
vicest
ocat
ert
o
ur
banpopul
ati
on.
2.Gov
ernmentSchemesi
mpl
ement
ati
on

Thr
eat
s 1.Economi
ccr
isi
s
2.Ent
ryofnewNBFCsi
nthesect
or
3.Var
yingGov
tpol
i
cies

Compet
it
ion

Page61
 Compet
it
ors 1.SBILi
feI
nsur
ance
2.Sahar
aLi
feI
nsur
ance
3.HDFCSt
andar
dLi
fe

7.
3SWOTAnal
ysi
sofI
CICIPr
udent
ial
Insur
anceCompany

SWOTANALYSI
SOFI
CICIPRUDENTI
ALLI
FEINSURANCE

SWOTAnal
ysi
s

St
rengt
hs 1.I
CICIPr
udent
ial
isNo.
1Pr
ivat
epl
ayeri
nIndi
a.
2.I
nnov
ati
veI
nsur
ancepol
i
cieswi
thr
iderbenef
it
s.
3.Mot
ivat
ionf
act
orspr
ovi
dedbyt
hecompany
.
4.Oneoft
hel
argestf
inanci
alI
nst
it
uti
onofI
ndi
a’
s
5.Tr
aini
ng pr
ovi
ded t
o al
lpeopl
es associ
ati
ng wi
thI
CICI
pr
udent
ial
6.Hi
ghestpai
dupcapi
tal
deposi
tedi
nIRDA.
7.Asset
sbaseofI
CICIi
smor
ethanRs1,
08,
000Cr
ores.

Weakness 1.Ver
yhugepr
emi
umsofpol
i
cies.
2.Mi
nimum pr
emi
um i
s19000.(
Exceptt
axsav
ingpol
i
cyonl
y
10,
000)
3.Tar
getuppercl
asspeopl
eonl
y
4.Pol
i
cychar
gesar
ever
yhi
gh

Oppor
tuni
ti
es 1.Ti
eupwi
thmor
ecor
por
ateagent
sal
lov
erI
ndi
a.
2.Ti
eupwi
thbr
oker
sal
so
3.
No.ofadopt
ingnewt
echnol
ogy
.

Page62
 4At
tractmor
epeopl
eofpr
ovi
dingcust
omercent
ri
cpr
oduct
s.

Technol
ogy 1.
Thr
eat
sfr
om exi
sti
ngl
i
fei
nsur
ancepl
ayer
s.
2.Thr
eat
sfr
om newent
rance.
3.Thr
eat
stosubt
it
lenewpr
oduct
s.
4.Changei
npol
i
cyofI
RDA.
5.Compet
it
ionf
rom mor
eandmor
enewpl
ayer
s.

CHAPTER8

CHANNELSOFDI
STRI
BUTI
ON

8.
1Int
roduct
ion

Thet
wopr
imar
ychannel
sar
edi
rectandi
ndi
rect
,butt
her
ear
edi
ff
erentsub-
channel
swi
thi
nthosecat
egor
ies.Wi
tht
hedi
rectchannel
,thev
endorofa
pr
oductorser
vicesel
l
sdi
rect
lyt
othecust
omer
.Thev
endormaymai
ntai
nit
s
ownsal
esf
orcet
ocl
osedeal
swi
thcl
i
ent
sorsel
li
tspr
oduct
sorser
vices
t
hroughane-
commer
cewebsi
te.Thedi
rectsal
esappr
oachr
equi
resv
endor
sto
t
akeont
heexpenseofhi
ri
ngandt
rai
ningasal
est
eam orbui
l
dingandhost
ingan
e-
commer
ceoper
ati
on.
Indi
rectchannel
smaybeconf
igur
edi
ndi
ff
erentway
s.
Si
ngl
e-t
ierdi
str
ibut
ioni
sachannel
desi
gni
nwhi
chv
endor
sdev
elopdi
rect
r
elat
ionshi
pswi
thchannel
par
tner
sthatsel
ltot
heendcust
omer
.Int
het
wo-
ti
er
di
str
ibut
ionmodel
,thev
endorsel
l
stodi
str
ibut
ors,
whi
chpr
ovi
depr
oduct
sto
channel
par
tner
ssuchasVARsandSI
s,whi
ch,
int
urn,
packagesol
uti
onsf
ort
he
endcust
omer
.

8.
2Di
str
ibut
ionChannel
sInsur
ance
Thi
schapt
erdeal
swi
tht
hev
ari
ousaspect
srel
atedt
oemer
genceofdi
ff
erent
di
str
ibut
ionchannel
saf
terpr
ivat
izat
ionofl
i
fei
nsur
ancesect
orwi
thamaj
or

Page63
f
ocusont
her
oleoft
radi
ti
onaldi
str
ibut
ionchannel
sini
nsur
ance,emer
ging
di
str
ibut
ionchannel
swhi
char
eal
readyi
ntheadopt
ionst
ream andonest
obe
adopt
ed.Di
str
ibut
ionchannel
sar
ethedr
iver
swhi
chext
endsser
vicest
osat
isf
y
t
hedemandsoft
housandsofcust
omer
s.Thi
schapt
eral
sol
ooksatchannel
-
wi
seper
for
manceoft
hesei
nor
dert
ocr
eat
eapl
atf
orm ofsuccessf
orl
i
fe
i
nsur
ancecompani
es.Whent
ryi
ngt
oachi
evet
heobj
ect
iveoft
hisr
esear
ch,
gr
owt
h and f
inanci
alanal
ysi
s of di
str
ibut
ion channel
s on l
i
fei
nsur
ance
compani
es’per
spect
ivewasdoneandi
twasdi
scov
eredt
hatbot
hpubl
i
csect
or
i
nsur
erand pr
ivat
e sect
orl
i
fei
nsur
ance compani
es hav
e adopt
ed di
ff
erent
channel
sofdi
str
ibut
iont
odel
i
verpr
oduct
sandser
vicest
ocust
omer
sandi
twas
r
eveal
ed t
hatgr
owt
h ofchannel
sis upwar
ds whi
ch shows pr
ospect
s of
di
str
ibut
ionchannel
ssuccessi
nfut
ure.

8.
3Di
str
ibut
ionScenar
ioi
ntheI
ndi
anMar
ket

I
ntoday
’sI
ndi
anI
nsur
ancemar
ket
,thechal
l
enget
oinsur
ersandi
nter
medi
ari
es
i
stwo-
pronged:Bui
l
ding f
ait
h aboutt
hecompanyi
nthemi
nd oft
hecl
i
ent
I
nter
medi
ari
esbei
ngabl
etobui
l
dper
sonalcr
edi
bil
i
tywi
tht
hecl
i
ent
sPr
iort
o
pr
ivat
izat
ion,t
heonl
ypubl
i
csect
ori
nsur
erLI
C washav
ingt
hemonopol
yin
i
nsur
ancesect
or.LI
Cwashav
ingi
tsbr
anchesi
nal
mostal
lpar
tsoft
hecount
ry
andi
tat
tract
edpeopl
elocalpeopl
etobecomet
hei
ragent
s..Tr
adi
ti
onal
l
y,t
ied
agent
shadbeent
hepr
imar
ychannelofi
nsur
ancedi
str
ibut
ioni
ntheI
ndi
an
mar
ket
.Theagent
sar
efr
om v
ari
oussegment
sinsoci
etyandcol
l
ect
ivel
ycov
er
t
heent
ir
espect
rum ofsoci
ety
.ofcour
se,t
hepr
ofi
l
eoft
hepeopl
ewhoact
edas
agent
s,may nothav
e been suf
fi
cient
ly knowl
edgeabl
e aboutt
he di
ff
erent
pr
oduct
sof
fer
edandmaynothav
esol
dthebestpossi
blepr
oductt
othecl
i
ent
.
Nonet
hel
ess,t
hecust
omert
rust
edt
heagentandcompany
.Thi
sar
rangement
wor
kedadequat
elyi
ntheabsenceofcompet
it
ion.

8.
4Gr
owt
hofDi
str
ibut
ionChannel
s.
A maj
orcont
ri
but
ort
othegr
owt
hst
oryofl
i
fei
nsur
ancecompani
esi
sthe
di
str
ibut
ion net
wor
k. I
ndi
an r
egul
ati
ons al
l
ow di
str
ibut
ion by i
nsur
ance
compani
es t
hroughoutI
ndi
a.Ther
e ar
e cl
ose t
othr
ee mi
l
li
on l
i
censed l
i
fe

Page64
 i
nsur
anceagent
s,spl
i
tal
mostequal
l
ybet
weent
hest
ate-
ownedLI
C andt
he
pr
ivat
epl
ayer
s.Agent
sgener
ate80% ofLI
C’snew busi
nessandabouthal
ffor
pr
ivat
ecompani
es.Ther
ear
eal
so about3,
000 cor
por
atei
nsur
anceagent
s,
most
lybanks,br
oker
sandf
ir
msengagedi
nper
sonall
oans.Bancassur
ancei
s
now emer
gingasakeydi
str
ibut
ionchannelt
hroughanet
wor
kofmor
ethan
70,
000 br
anches ofbanks.Lasty
ear
,banks gener
ated about20% ofnew
busi
nessf
orpr
ivat
eli
fecompani
es.Banksar
ethepr
imar
ysal
eschannelf
ora
f
ewi
nsur
erssuchasHDFCSt
andar
dLi
feandSBILi
fe.
Thei
nsur
ancemar
ketpl
acei
sunder
goi
ngat
ransf
ormat
iont
hatmayev
ent
ual
l
y
l
eadt
osi
gni
fi
cantchangesi
nhow consumer
spur
chasei
nsur
ancepr
oduct
s.A
v
ari
etyofdi
str
ibut
ionchannel
sar
ecur
rent
lyusedi
nthi
smar
ketpl
aceandsome
i
nsur
ersut
il
izeacombi
nat
ionofdi
str
ibut
ionchannel
s.Thesei
ncl
udet
hei
nter
net
-
ledchannel
s,company
-l
edchannel
s,bank-
ledchannel
s,andagent
-l
edchannel
s.

Di
str
ibut
ionChannel
sofLI
C

AGENCY BROKER
DI
STRI
BUTI
ON WORKSITE
BANCASSURANCE
MARKETI
NG
CHANNELS
DI
RECT I
NTERNET
MARKETI
NG MARKETI
NG
CORPORATE
AGENCY

Di
str
ibut
ionChannel
sofI
CICIPr
udent
ial
Insur
anceCompany

Page65
 Agency
Anagenti
saper
sonwhoi
sempl
oyedorobl
i
gat
edt
oactonbehal
fofaper
sonort
o
r
epr
esentt
hem i
n negot
iat
ions ordeal
i
ngs wi
tht
hir
d par
ti
es.The agent
-cl
i
ent
r
elat
ionshi
pcanbel
egal
l
yenf
orcedi
fthet
ermsoft
hecont
racthav
ebeendi
scl
osed,
andagent
shav
eanobl
i
gat
iont
oper
for
mthei
rdesi
gnat
edser
vicespr
ompt
lyand
di
l
igent
ly.Theyal
socannotent
eri
ntoanyot
hercont
ract
swhi
chwoul
dint
erf
erewi
th
t
hei
rout
standi
ngcont
ract
ual
obl
i
gat
ionsasagent
s. 

 Br
oker
s

Theyar
eregi
ster
ed undert
heI
nsur
anceAct(
Cap.142)t
o car
ryon i
nsur
ance
busi
nessasagent
sofi
nsur
edsori
ntendi
ngi
nsur
eds.Theyadv
isei
ndi
vi
dualor
cor
por
atebuy
ersofi
nsur
anceont
hei
rinsur
anceneeds.Theyactont
hei
rcl
i
ent
s'
behal
ftonegot
iat
eandobt
aint
hemostappr
opr
iat
einsur
ancecov
ersatcompet
it
ive
pr
emi
um r
atesf
rom t
hei
rinsur
ers,
exer
cisi
ngcar
eandski
l
lindoi
ngso.

Page66
 Bancassur
ance

Bancassur
ancei
sthet
erm usedt
odescr
ibet
hepar
tner
shi
porr
elat
ionshi
pbet
ween
abankandani
nsur
ancecompany
,wher
ebyt
hei
nsur
ancecompanyusest
hebank
sal
eschannel
inor
dert
osel
li
nsur
ancepr
oduct
s,mostofwhi
char
eper
sonal
li
nes.

Bankst
affmember
s,r
athert
hani
nsur
anceagent
s,becomet
hepoi
ntofsal
esor
poi
ntofcont
actf
orcust
omer
s.Bankst
affmember
sar
eadv
isedandsuppor
tedby
t
hei
nsur
ancecompani
est
hroughpr
oducti
nfor
mat
ion,mar
ket
ingcampai
gnsand
sal
est
rai
ning.Theyar
eal
sor
equi
redt
opasst
her
elev
antl
i
censi
ngexami
nat
ions
bef
oret
heycansel
li
nsur
anceorpr
ovi
dei
nsur
ance-
rel
atedadv
ice.

Banksal
somakeuseoft
hei
rwebsi
test
osel
lper
sonall
i
nespr
oduct
s,suchasCar
d
Pr
otect
ionI
nsur
ance,Househol
dInsur
ance,Pr
ivat
eMot
orCarI
nsur
anceandTr
avel
I
nsur
ance.Somebanksev
enof
fert
rav
eli
nsur
ancepr
oduct
sthr
ought
hei
rATM
net
wor
ks.

 I
nter
net

Thegr
owt
hofi
nfor
mat
ionont
heI
nter
nethasal
soi
ncr
easedt
heamountoft
ime
peopl
espendoni
t.Thi
shasi
ntur
ngener
atedanew mar
ketf
oronl
i
neof
fer
ingof
i
nsur
ancepr
oduct
s.I
nrecenty
ear
s,Si
ngapor
ehasseent
heent
ryofdi
rect
-t
o-
consumeri
nsur
ancecompani
essel
l
ingi
ndi
vi
dualmot
or,t
rav
el,homeandacci
dent
i
nsur
ance.I
tsbusi
nessmodelent
ail
sdi
rectunder
wri
ti
ngv
iaanonl
i
nepl
atf
orm,
suppor
tedbyaf
ull
yst
aff
edcont
ractcent
re(
oper
ati
ng24hour
sev
erydayoft
he
week)andaf
ull
-f
ledgedcl
aimsdepar
tment
.

 Di
rectMar
ket
ing

Rapi
dtechnol
ogi
caladv
ancement
s hav
e changed t
he way i
n whi
ch i
ndi
vi
dual
i
nsur
ance compani
es can now ser
vet
hei
rcust
omer
s.Att
he same t
ime,new

Page67
t
echnol
ogyhasal
l
owedf
ormor
einf
ormat
iononi
ndi
vi
dualpol
i
cyhol
der
s,whi
ch
enabl
est
hei
rbuy
inghabi
tst
obest
oredi
ntheI
Tsy
stemsofdi
recti
nsur
ers.The
bui
l
d-upofsuchdat
abasesov
ert
hey
ear
sisausef
ulmar
ket
ingt
oolt
ohar
nesst
he
powerofi
nfor
mat
iont
echnol
ogybyt
hei
nsur
ers.Theycant
henexecut
esegment
mar
ket
ingt
ofocusoncust
omi
sedpr
oduct
sforni
chet
argetgr
oups.I
nsur
ershav
e
di
rect
lymar
ket
ed per
sonall
i
nes,such as Per
sonalAcci
dentI
nsur
ance,Tr
avel
I
nsur
ance,Pr
ivat
e Mot
or I
nsur
ance,Househol
d I
nsur
ance,Hospi
tal I
ncome
I
nsur
ance,Gol
fer
’sI
nsur
anceandev
enDomest
icMai
dPackageI
nsur
ance,t
hrough
t
hei
rinf
ormat
ive websi
tes. I
ntendi
ng i
nsur
eds sel
f-
decl
are t
hei
r per
ti
nent
i
nfor
mat
ioni
nthesi
mpl
i
fiedonl
i
nepr
oposalf
orms.I
nsur
ancepr
oductquot
ati
ons
andpol
i
cywor
dingar
emadeav
ail
abl
eonl
i
ne.

 Cor
por
ateagent
s
Acor
por
atei
nsur
anceagentofl
i
fe,non-
li
feandheal
thcanhav
ear
rangement
swi
th
amaxi
mum oft
hreecompani
eseacht
osol
i
cit
,pr
ocur
eandser
vicet
hei
rinsur
ance
pr
oduct
s,accor
dingt
onew r
egul
ati
onsbyI
nsur
anceRegul
ator
yandDev
elopment
Aut
hor
it
yofI
ndi
a(I
RDAI
).
"Fur
ther
,acor
por
ateagent(
gener
al)shal
lsol
i
cit
,pr
ocur
e
andser
vicer
etai
lli
nesofgener
ali
nsur
ancepr
oduct
sandcommer
ciall
i
nesofsuch
i
nsur
erswi
that
otalsum i
nsur
ednotexceedi
ngRs5cr
oreperr
iskf
oral
li
nsur
ances
combi
ned."
Theappl
i
cant
swhi
char
eexcl
usi
vel
yint
oinsur
ancedi
str
ibut
ionshal
l
hav
eami
nimum equi
tyshar
ecapi
talorcont
ri
but
ionandnetwor
thofRs50,
00,
000
andt
heyshal
lmai
ntai
nnetwor
thatal
lti
mes,
ther
egul
atorcl
ari
fi
ed.

CONCLUSI
ON

The f
inanci
almar
ket
s hav
e cont
inued t
o wi
tness unpr
ecedent
ed l
i
ber
ali
zat
ion,
gr
owt
handr
efor
msov
ert
hel
astdecadepr
ompt
edbyr
egul
ator
ycompul
sionsanda
r
api
dint
egr
ati
onbet
weendomest
icandgl
obalmar
ket
s.Andasar
esul
t,onehas
seensubst
ant
ialgr
owt
hint
henumberoff
inanci
alf
ir
ms(
insur
ancecompani
es,
mut
ualf
unds,
 
broker
ages,bankset
c.)andi
nthenumberandv
ari
etyoff
inanci
al
pr
oduct
sandser
vicesof
fer
edbyt
hem.Ast
heneedoft
hepeopl
eischangi
ngsoi
s

Page68
changi
ngt
hei
nvest
menthabi
tsoft
hepeopl
eandt
hishasbr
oughti
naspat
eofnew
pr
oduct
sandschemeswher
e peopl
ecani
nvest
.Theconceptofi
nsur
anceasan
i
nvest
mentopt
ionhasar
ri
vedwher
e peopl
efi
rsti
dent
if
ythev
ary
ingneedsofmoney
t
henconv
ert
stheneedsi
ntospeci
fi
camountofmoneyandt
imer
equi
redt
oachi
eve
t
heobj
ect
iveofi
nvest
ment
spl
ans.Theobj
ect
iveofi
nsur
anceasani
nvest
menti
sto
ensur
ethati
nvest
ment
s ar
e dr
iven by pr
edet
ermi
ned and wel
lthoughtout
i
nvest
mentpl
anandt
hatt
hei
nvest
ment
sar
esui
tabl
eandadequat
etomeett
hese
pl
ans.Butf
ort
hist
hepl
annermustunder
standt
heuni
ver
seofi
nvest
ment
sopt
ions.
He/
shemustbewel
linf
ormedont
her
iskandr
etur
nat
tr
ibut
esoft
heseopt
ions.I
n
addi
ti
on t
othe abov
e,compani
es shoul
d al
so i
nnov
atet
o come up wi
th
bet
ter
  
product
sthatwoul
dsui
ttheI
ndi
anpopul
ati
onandshoul
dal
sot
ryt
omar
ket
andsel
lthei
rpr
oduct
sthr
oughnewchannel
sofdi
str
ibut
iont
hatcanbeef
fect
ivei
n
sel
l
ingt
hei
r 
 pr
oduct
stot
hemasses.Peopl
eshoul
dident
if
ythei
rneedsandt
hen
deci
deont
het
ypeofpol
i
cyt
heywantt
oinv
esti
n.i
nsur
ancei
sagoodi
nvest
ment
opt
ionf
ort
hosepeopl
ewhodonotknowwher
etoi
nvestandwhodonotwantt
othe
r
iskofcapi
tal
erosi
on.

BI
BLI
OGRAPHY

 Books:
• Kr
ishnamur
thy
.S,
Jhav
eri
.Nani
,Bakshi
.,
Insur
anceI
ndust
ryi
nIndi
a

• Ar
nikaSr
ini
vasan,
Sar
ikaTr
ipat
hi,
andAmi
thKumar(
2012)“
Indi
anLi
feI
nsur
ance

Page69
 I
ndust
ry-TheChangi
ngTr
ends”

 Websi
tes:
• www.
l
ici
ndi
a.com

• www.
i
rdai
ndi
a.or
g

• www.
bimadeal
s.com/
li
fe-
insur
ance-
indi
a

• www.
i
nsur
ingi
ndi
a.com

• www.
economi
cti
mes

Page70