(AFFILIATED TO GURU GOBIND SINGH INDR APRASTHAU NIVERSITY, DELHI)

CONTENT S
CERTIFICATE OF COMPANY . .. i

CERTIFICATE OF INSTITUTE .. ii ACKNOWLEDG EMENT

 ...iii1.EXEC UTIVE SUMMERY2 INTRODUCTIO N3. RESEARCH OBJECTIVE & METHODOLOG Y4. INTRODUC

TION OF THE COMPANY 5. PRODUCT OF LIC6. GROWTH OF PVT. LIFE INSURANCE COMPANIES IN THE LAST

5YEARS7. CURRENT STANDING OF PVT. LIFE INSURANCE COMPANIES INURBAN SECTOR 8. ROLE

OF FOREIGN COMPANIES IN INDIA9. FINDINGS10. IMPORTANCE OF JOINT VENTURE11. CONCLUSION1 2. RECOMMEN

DATIONS13. BIBLIOGRAPH Y

CERTIFI CATE
This is to certify that project entitled

Comparativ e Study of Life Insurance Corporation of India

submitted by Mr.VIPUL BENIWAL (Enrolment no. 0221471708

) has beendone under my guidance and supervision in fulfillment

of therequireme nt for the award of Bachelor of BusinessAd

ministration ( General).The work and analysis mentioned in this project

report have been undertaken by the candidate himself and

necessaryrefe rences have been recognized and acknowledge

d in the textof the report.

ACKNOW LEDGEME NT
Co-operation and building up of moral are

the essence of success. Theseare two factors that go a long way in achieving it. It is a Herculean

task,which lacks these two determinants of success. Summer training was anexposure to

corporate envi ronment. It wa s an opportuni ty and great pl easure for me to be in such an

environment and having interaction withconcerned people.I am highly obliged to

Mr. Rahul Dutt Mudgal (Development officer,LIC Karol Bagh branch) who provided me

the opportunity for doing mysummer training at LIC, and would like to thank him for their

guidanceand help which had made it possible for me to complete my project work successfu

lly.Finally, I would like to thank Dr. N.K.Kakkar (Director), MaharajaAgras

en Institute of Management Studies and Mrs. Amit Gupta

, my project g uide at the inst itute, for their enlig htening and m eticulousguida

nce for the consummation and evaluating of this project.I also wish to pay my sincere regards to all

my respected teachers whohelped me build a concrete platform before sending

me for training sothat I can land out firmly in all respects.

EXECUT IVE SUMMA RY

Someone ha s greatly sai d that practi cal knowled ge is far bet ter thanclass

room teaching. During this project I fully realized this

and come toknow about the present real world of

Insurance sector

. It includes all theactivities involved in

providing insurance products to the final customers.I am pleased

to know ab out the cons umers wan ts and comp etitorsactivit ies in the

real world of Insurance.T he subject of my study is to analyze the present

insurance sector and product s offered by LIC by applying

various tools like cold calling andthrough direct interaction

with customers. I have also done research onthe

growth of private life insurance companies in the last five years.

The report contains first of all brief introduction

about thecompany . Then it contains the current

status of privateinsur ance companies and foreign

insurance companies inIndia.

INTROD UCTION
Insurance is a social device where

uncertain risks of individuals may be combined in a group and thus

made more certain small perio dic contributio ns by the individuals

provide a found out of whic h those who suffer losses may be

reimbursed . In addition to being a means to protect oneself,

the insurance Industry is anefficie nt conduit for the saving of

people to be channeled towardseco nomic growth. In India, the

Insurance Industry7 is more than150 years old. Today, it is

monopolize d by two PSU's in their respe ctive fields of life and Genera

l Insurance. However, with thesuccessf ul passage IRDA Bill

through both houses of parliament inDecembe r 1999 the sector has

been opened up to private players.Thi s will provided much.

Needed impetus to the Industry and willimprov e the

quality of service and products and will also increaseem ployment

opportuniti es. There are still some issues their need to be sorted out,

particularl y with regard to the status of interme diaries as envisaged

by the Insuran ce Regulatory Authority.

RESEAR CH OBJECT IVE.

The report gives the brief background of the sector and

proceeds tohighlight the short comings of the existing

setup and players. The benefit s of liberalized sector are

enumerated . The report also triesto identify the market

potential for insurance products and thestrategy

that can we employed to exploit the same. The stress

isalso given on knowing the awareness level of

general public.

RESEA RCH METHO

DOLOG Y
To conduct the market research first of all it is

necessary to create a research design.A research design is basically a

blue print of how a research is to be conducted, it mayinclude;1 . Choosing t he approac

h 2.Determin ing the types of data nee ded.3 . L o c a t ing the source of data.4.Choo

sing a meth od of data.

RESEAR CH DESIGN
Basically there are 3 types of

approaches used during the any research:1 . E xplorator y2.Descri ptive3.Ex

perimental . During this research Descriptive and Exploratory

approach is taken intoconsiderati on because of the availability of relevant information to

describe therelationship s between the marketing problem and the available information.

TYPES OF DATA USED:

Both primary and secondary data is used in the research. Data Collection Methods

To conduct the market research the data is collected by two sources.

SECONDAR Y DATA Secondary data is one which already exists and is collected from

the publishedsour ces.The sources from which secondary data

was collected are:

Newspapers and Magazines like Economic Times,

Insurance Times, andInsurance Post.

Internet

PRIMARY DATA The primary sources of data refer to the first hand i

nformation Primary data iscollected during the survey with the help of

Questionnaires .

INTROD UCTION OF THE COMPA NY

LIFE INSURAN CE CORPOR ATION

OF INDIA (LIC)
Life Insurance Corporation of India (LIC) was formed in

September, 1956, by an Actof Parliament, viz., Life Insurance Corporation

Act, 1956, with capital contributionfr om the Government of India. The then Finance

Minister, Shri C.D. Deshmukh,wh ile piloting the bill, outlined the objectives of LIC thus to

conduct the businesswith the utmost economy, and a spirit of trusteeship; to charge

premium no higher than warranted by strict actuarial considerations ; to invest the funds for

obtainingmaxi mum yield for the' policy holders consistent with safety of the capital; to

render prompt and efficient service to policy holders, thereby making insurance

widely popular . Since nationalization , LIC has built up a vast network of 2,048

branches, 100divisions and 7 zonal offices spread over the country. The Life Insurance

Corporationof India also' transacts business abroad and has offices in Fiji, Mauritius and

UnitedKingdo m. LIC is associated with joint ventures abroad in the field of

insurance,nam ely, Ken-India ,Assurance Company Limited, Nairobi; United

Oriental AssuranceCo mpany Limited, Kuala Lumpur and Life Insurance

Corporation (International) E.C.Bahrain. The Corporation has registered

a joint venture company in 26

th

December,200 0 in Katmandu, Nepal by the

name of Life Insurance Corporation (Nepal) Limitedin collaboration with Vishal

Group Limited, a local industrial Group. An offshorecompany L.I.C. (Mauritius)

Off-shore Limited has also been set up in 2001 to tap the African insurance market.

General Insurance:
General insurance business in the

country was nationalized with effect from 1stJanuary, 1973 by the General

Insurance Business (Nationalizatio n) Act, 1972. Morethan 100 non-life insurance

companies including branches of foreign companiesope rating within viz., the

National Insurance Company Ltd., The New IndiaAssuranc e Company Ltd., The

Oriental Insurance Company Ltd., and The UnitedIndia Insurance Company Ltd.

with head offices at Calcutta, Bombay, New Delhi andMadras, respectively.

General Insurance Corporation (GIC) which was the holdingcompa ny of the four

public sector general insurance companies has since beendelinked from the later

and has been approved as the "Indian Reinsurer" since 3

rd

November 2000. The share capital of GIC and that of the four companies are held bythe

Government of India. All the five entities are Government companies registeredunde

r the Companies Act, 1956. The general insurance business has grown in

spreadand volume after nationalization . The four companies have 2699 branch offices,

1360divisional offices and 92 regional offices spread all over the country. GIC and

itssubsidiaries have representation either directly through branches or agencies in

16countries and through associate locally incorporated subsidiary companies in

14 other countries . A whollyowned subsidi ary company of GIC, i.e. Indian

International P vt.Ltd. is operating in Singapore and there is a joint venture company, viz.

KenIndiaAssuranc e Ltd. in Kenya. A new wholly owned subsidiary called New

IndiaInternatio nal Ltd., UK has also been registered

PRODUC TS OF LIC
Whole Life with Profits Plan 002

Features: This plan is mainly devised to create an estate for the heirs of the

policyholder as the plan basically provides for payment of sum assured plus bonuses

on the death of the policyhold er. However, considering the increased longevity of the Indian

population,the Corporation has amended the above provision, thereby proving for

payment of sum assured plus bonuses in the form of maturity claim on completion of age 80

yearsor on expiry of term of 40 years from date of commenceme nt of the policy

whichever is later.The premiums under the policy are payable up to age 80 years

of the policyholder or for a term of 35 years whichever is later. If the payment of

premium ceases after 3years, a paidup policy for such reduced sum assured will be

automatically secured provid ed the reduced sum assured exclusive of any attached bonus is not

less thanRs.250/-. Such reduced paid-up policy is not entitled to participate in the

bonusdeclared thereafter but the bonuses already declared on the policy will remain

attach, provide d the policy is converted in to a paid-up policy after the premiums

are paid for 5 years. Suitable For: This policy is suitable for people of all ages who wish

to protect their families fromfinancial crises that may occur owing to the policyholder's

premature death.

BENEFIT S
SURVIVAL BENEFIT: Sum assured plus accrued

bonuses and the terminal bonuses, if any; on the policyhold er attaining age 80 years

or on expiry of term of 40 years from the date of commence ment of the policy

whichever is later. DEATH BENEFIT: Sum assured plus accrued bonuses and

the terminal bonuses, if any, on the death of the policyholder are paid to his/her

nominees/heir s. LIMITED PAYMENT WHOLE LIFE - PLAN

005 (WITH PROFITS)

Features:
This is the best form of life assurance for family

provision since it enables the LifeAssured to pay all the premiums during the

ordinarily vigorous and most productiveyear s of life. He need not pay any premium

in the later stages of life if and when hisconditions might become adverse.With Profits

Limited Payments Policies do not cease to participate in profits after completi

on of the premium paying period but continue to share in the periodicalBon us Distribution

until the death of the Life Assured.The Without-Profit option is available under Table

no. 3. If the policyholder pays atleast 3 years' premiums and then discontinues

paying any more premiums, a reduced paidup assurance policy comes into force.

Such a reduced paidup Policy will not beentitled to participate in the profits declared.

Thereafter, but such Bonus as hasalready been declared on the Policy will remain attached

thereto. The premium paying term under this plan is five years minimum and

55 years maximum.

BENEFIT SSurvival benefits

If the Life Assured survives the

premium paying period and the policy continues infull force, provided all premiums

have been paid, but no further premiums arerequired to be paid.

Death Benefits:
Sum Assured plus Bonuses accrued and vested in the

policy.Plan Parameters: M i n i m u m M a x i m u m E n t r y a

g e 1 2 ( n e a r e r b i r t h d a y ) 6 0 S u m a s s u r e d ( R s . ) 5

0 0 O I T m a r 5 5 a x

0 L T ( s

0 N I M e r y e ) 5 ( M . P

r e m o c e a s i n g age is 70)Mode of Pa yment Maxim um premium p aying period P

olicy loanavail ableY e a r l y , half yearl y 80 yrs. o f age or 4 0 yrs.of y e s ,quarterly,

monthly premi um paying ter m from the, s alary saving date of co mmencemen t

whichever Scheme is late r.

ENDOWM ENT WITH PROFIT PLAN - 014

FEATURES:

Moderate Premiums

High bonus

High liquidity

Savings orientedThis

policy not only makes provisions for the family of the Life Assured in event of his

early death but also assures a lump sum at a desired age. The lump sum can bereinvested to

provide an annuity during the remainder of his life or in any other wayconsidered suitable at that

time.Premiums are usually payable for the selected term of years or until death if it

occursduring the term period. Suitable For: Being an endowment assurance policy, this plan

is apt for people of all ages andsocial groups who wish to protect their families from a financial

setback that mayoccur owing to their demise.The amount assured if not paid by reason of his

death earlier will payable at the endof the endowment term where it can be invested in an annuity

provision for the rest of the policyholder's life or in any other way he may think most

suitable at that time.

BENEFITS
Disability Benefit: In case policy holder becomes totally and permanently

disabled due to an accident before reaching the age of 70 and the policy is in full force, he

will not be required to pay further premiums, (the Disability Benefit is available in

respect of the firstRs.20000 sum assured on anyone life) and the policy will continue to be in force.

Accident Benefit: By paying a small extra premium of Rs. l per Rs. 1000/sum assured per

year he or his family are entitled to the following benefits on death or permanent

disabilitycaused by accident. Even students above the age of 18 years can avail of this benefit.

Premium Stoppage: If payment of premiums ceases after at least THREE years'

premiums have been paid , a free paid-up policy for a reduced sum assured will be automatically

secured provide d the reduced sum assured, exclusive of any attached bonus, is not

less thanRs. 250/.

The reduced sum assured will become payable on the event as

stipulated inthe policy. Bonus: Is there anything extra payable besides the sum assured

at the time of claimsettlement ? Yes, but only if it is a 'with profits' policy. Every year the Life

InsuranceCorpo ration distributes its surplus among policyholder to 'with profits' polices in

theform of bonuses. Substantial bonuses have been declared in the past after eachvaluation

of policy liabilities.

BENEFITS
Survival benefits: Payment of full Sum' Assured + Vested Bonus + Final

Additional bonus, if any. Death Benefits: Payment of full sum assured + Vested Bonus.

ANMOL JEEVAN I (WITHOUT PROFITS)BEN EFITS On Death during the Term of the Policy:

Sum AssuredO n M a t u r i t y : N i l

RESTRICTIO NS (A) Minim um age at entry:18 y ears (comp leted)

(B) Maxi mum age at entry:5 5 years (n e a r e r birthda y)

(C)

Maximum age at mat urity:65 y ears( D ) M i n i m u m T e r m : 5 y e a r

s ( E ) M a x i m u m T e r m : 2 5 y e a r s (F) Mini mum Sum Assured:R

s. Five La k h (G) Maxi mum Sum As sured: Rs. Th ree Crore (In clusive of all

term Assurance plans) Note: The policy would be issued in multiples of Rs. one lakh for Sum

Assured above Rs. five lakh. (H)Mode of Premium Payment: Yearly, HalfYearly and

Single premium.(G) Rebates:

Sum Assured Rebate

:

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

above in case of single premium policies.

Mode Rebate: 1% of Annual premium for yearly mode

and nil for Half-Yearly mode. 19

UNDERWRITI NG, AGE PROOF AND MEDICA L REQUIREME NTS:

The plan is available to Standard and Sub-standard lives (upto Class VI EMR). This plan is

also available to female lives (category I and II lives only) and to physicallyhandi capped persons

subject to certain conditions. Standard age proof will have to besubmitted

along with the Proposal Form. PAID-UP AND SURRENDER VALUE:

The policy will not acquire any paid-up value.

No Surrender Value will be available under this plan.

GRACE PERIOD FOR NONFORFEITURE PROVISIONS: A grace period of 15 days will be allowed for

payment of yearly or halfyearly premium s. If death occurs within this period and before the

payment of the premiumthen due, the policy will still be valid and the Sum Assured paid after

deduction of thesaid premium as also unpaid premiums falling due before the next

policy anniversaryof the Policy. If the premium is not paid before the expiry of the days of

grace, thePolicy gets lapsed

REVIVAL If the Policy has lapsed, it may be revived during the life time of the Life Assured,

but before the date of expiry of policy term, on submission of proof of continuedinsura bility to the

satisfaction of the Corporation and the payment of all the arrears of premium together with

interest at such rate as may be prevailing at the time of the payment. The corporation reserves the

right to accept or decline the revival of discontinued policy. The revival of the discontinued

policy shall take effect only after the same is approved by the Corporation and is specifically

communicated to the LifeAssured. The cost of the Medical reports, including

Special Reports, if any, requiredfor the purposes of revival of the policy, should

be borne by the Life Assured. PAYMENT OF CLAIMS No Claims concession will

be applicable to this Policy. BACKDATING INTEREST The policy can be back dated

within the financial year. No dating back interest shall be charged. BENEFITSSur vival benefits:

If one or both the lives survive to the maturity date, the sum assured, along with

theaccumulated bonus, is payable.

Death Benefits: In case either of the couple dies during the policy's term, two things happen. One,

LIC pays to the surviving spouse the full sum assured. And, two, the policy continues onthe

life of the surviving partner without him/her having to pay any further premiums,i.e.

the life cover on the survivor continues free of cost.The sum assured is again be payable on the death of the

other partner in case both thehusband and wife were to die during the term of the policy. Vested bonus

would also be paid along with the sum assured on the second death. NEW INSURANCE

SCHEMESUni versal Health Insurance Scheme The Universal Health Insurance

policy is available to groups of 100 or more families.The policy provides for

reimbursement of medical expenses upto Rs.30000/towardshospital ization floated amongst the

members of the family, death cover due to anaccident for Rs.25000 to the earning head of the family and

compensation due to lossof earning head of the family @ Rs.50/- per day upto a maximum of 15

days, after awaiting period of three days, when the earning head of the family is hospitalized.

The premium under the policy is Rs.1! - Per day (Le. Rs.365/-per annum) for anindividual,

Rs. 1.50 per day for a family of five limited to spouse and children (i.e.Rs.548 per annum), and

Rs.2/- per day (i.e. Rs. 730 per annum) for coveringdepend ent parents within the overall family

size of seven. A subsidy of Rs. 100 per year towards annual premium for "Below Poverty Life" families is

also provided under the Scheme.

For purpose of this policy HOSPITAL means:

Any Hospital/Nursin g home

registered with the local authorities and under thesupervision of a registered and qualified

Medical practitioner.

Hospital, Nursing Home runs by Government.

Enlisted hospitals run by NGOs/ Trusts/ selected private hospitals with fixedschedule of charges.

Hospitalization should be for a minimum period of 24 hours.However, this time limit is not applied to

some specific treatments and also where dueto technological advancement hospitalization

for 24 hours may not be required. Main Exclusions:

All pre-existing diseases.

Corrective, cosmetic or aesthetic dental surgery or treatment.

Cost of spectacles,

contact lens and hearing aid.

Primarily diagnostic expenses not related to sickness/injury.

Treatment for Pregnancy, Childbirth, Miscarriage, abortions etc. Age Limitations:

This policy covers people between the age of 3 months to 65 years. Floater Basis:

The benefit of family' will operate on floater basis i.e. the total reimbursement of Rs.30,000/-

can be availed of individually or collectively by members of the family.

Insurance plans: As individuals it is inherent to differ. Each individuals insurance needs andrequirements are different

from that of the others. LICs Insurance Plans are a policythat talk to you individually and gives the most suitable options

that can fit onesrequirement .Jeevan AnuragKomal JeevanCDA Endowment Vesting At 21 Marriage Endowment

Or Educational Annuity PlanCDA Endowment Vesting At 18Jeevan KishoreJeevan ChhayaChild Career PlanChild Future PlanJeevan

Aadhar Jeevan VishwasThe Endowment Assurance PolicyThe Endowment Assurance PolicyLimited

PaymentJeevan Mitra(Double Cover Endowment Plan)Je evan Mitra(Triple Cover Endowment Plan)Jeevan Anand New

Janaraksha PlanJeevan AmritJeevan ShreeIJeevan Pramukh24

http://htm

Unit plans: Unit plans are investment plans for those who realize the worth of hardearnedmoney. These plans help

you see your savings yield rich benefits and help you savetax even if you dont have consistent income.

Jeevan plus

Future plus

Bima plus

Market plus

Money plus

Profit plus

Fortune plus

Fortune plus:
It is a unit linked assurance plan where premium payment term

(PPT) is 5 years andthe premium payable in the first year will be 50% of total premium payable under the policy. The level of

cover will depend on the level of premium you agree to pay.Four types of investment funds are offered. Premiums paid

after allocation charge will purchase units of the Fund type chosen. The Unit Fund is subject to various

chargesand value of the units may increase or decrease, depending on the Net Asset Value(NAV). The plan

therefore serves the purpose of insurance-cuminvestment. 1. Payment of Premiums: You may pay premiums

regularly at yearly, halfyearly,quarterly or monthly (ECS) intervals for 5 years. The minimum First year

premiumwill be Rs.20,000/- and you may pay any amount exceeding it. From second year onwards each years

premium will be 25% of the first year premium. Other Features:i) Partial Withdra wals: You may encash the units partially

after the third policyanniversar y subject to the following:i) In case of minors, partial withdrawals shall be allowed from

the policy anniversarycoinc iding with or next following the date on which the life assured attains majority(i.e. on

or after18th birthday).ii) Partial withdrawals may be in the form of fixed amount or in the form of fixednumber of

units.iii) For 2 years period from the date of withdrawal, the Sum Assured under the Basic plan shall be reduced to the

extent of the amount of partial withdrawals made.iv) Under policies where less than 3 years premiums have been paid and

further premium s are not paid, the partial withdrawals shall not be allowed.v) Under policies where atleast 3 years premiums

have been paid, partial withdrawalwill be allowed subject to Policyholders Fund Value

being atleast Rs. 10,000/-. ii) Switching: You can switch between any fund types for the entire Fund Value26

during the policy term subject to switching charges, if any. iii) Discontinuance of premiums:

If premiums are payable either yearly, halfyearly,quarterly or monthly (ECS) and the same have not been duly paid

within the days of grace under the Policy, the Policy will lapse. A lapsed policy can be revived duringthe period of two years

from the due date of first unpaid premium.I) Where atleast 3 years premiums have been paid, the Life Cover and

AccidentBenefit rider, if any, shall continue during the revival period.During this period, the charges for

Mortality and Accident Benefit cover, if any, shall be taken, in addition to other charges, by canceling an appropriate

number of units outof the Policyholders Fund Value every month. This will continue to provide

relevantrisk covers for:i. two years from the due date of first unpaid premium, or ii. Till the date of maturity, or iii. Till such

period that the Policyholders Fund Value reduces to Rs. 5,000/,whichever is earlier.The benefits payable

under the policy in different contingencies during this periodshall be as under: A.

In case of Death: Higher of Sum assured under the Basic Plan or the PolicyholdersFu nd Value. The Sum Assured shall be subject

to provisions of Partial Withdrawalsmad e, if any. B. In case of Death due to accident: Accident Benefit

Sum Assured in addition to theamount under A above, if Accident Benefit is opted for. C.

On Maturity: The Policyholders Fund Value. D. In case of Surrender (including

Compulsory Surrender): The Policyholders FundValue. The Surrender value, however, shall be paid only after

the completion of 3 policy years. E. In case of Partial Withdrawals: For 2 years period from the date of withdrawal,

thesum assured under the basic plan shall be reduced to the extent of the amount of partial

withdrawals made. II) Where the policy lapses without payment of at least 3 years premiums, the

LifeCover and Accident Benefit rider cover, if any, shall cease and no charges for these benefits shall be deducted.

However, deduction of all the other charges shall continue.The benefits under such a lapsed policy shall be

payable as under:27
F. In case of Death: The Policyholders Fund Value.

G. In case of death due to accident: Only, the amount as under F above. H.

In case of Surrender (including Compulsory Surrender): Policyholders FundValue / monetary value

as the case may be, shall be payable after the completion of the third policy anniversary. No amount shall be

payable within 3 years from the dateof commencement of policy. I. In case of Partial withdrawal:

Partial Withdrawals shall not be allowed under such a policy even after completion of 3 years period.

iv) Revival: If due premium is not paid within the days of grace, the policy lapses. Alapsed policy can be revived

during the period of two years from the due date of firstunpaid premium or before maturity, whichever is earlier. The

period during which the policy can be revived will be called Period of revival or revival period.If

premiums have not been paid for at least 3 full years, the policy may be revivedwithin two years from the due date of

first unpaid premium. The revival shall be madeon submission of proof of continued insurability to

the satisfaction of the Corporationand the payment of all the arrears of premium without interest.If at least 3 full years

premiums have been paid and subsequent premiums are not paid, the policy may be revived within two years from

the due date of first unpaid premium but before the date of maturity. No proof of continued insurability shall

berequired but all arrears of premium without interest shall be required to be paid.The Corporation reserves the right

to accept the revival at its own terms or decline therevival of a lapsed policy. The revival of a lapsed policy shall take effect

only after the same is approved by the Corporation and is specifically communicated in writingto the Proposer / Life

Assured.Irrespect ive of what is stated above, if less than 3 years premiums have been paid andthe Policyholders Fund Value is

not sufficient to recover the charges, the policy shall be terminated and thereafter revival will not be entertained. If 3

years or more than 3years premiums have been paid and the Policyholders Fund Value reduces to Rs.5000/-, the

policy shall terminate and Policyholders Fund Value as on such date shall be refunded to the Life Assured and

thereafter revival will not be allowed. v) Settlement Option: When the policy comes for maturity, you

may exerciseSettlem ent Option and may receive the policy money in instalments spread over a period of not

more than five years from the date of maturity. There shall not be anylife cover during this period. The value of installment

payable on the date specifiedshall be subject to investment risk i.e. the NAV may go up or down depending

uponthe performance of the fund.

Risks borne by the Policyholder: i) LICs Fortune Plus is a Unit Linked Life Insurance product which is

different fromthe traditional insurance products and are subject to the risk factors.ii) The premium paid in Unit

Linked Life Insurance policies are subject to investmentrisks associated with capital markets and the NAVs of

the units may go up or down based on the performance of fund and factors influencing the capital market

and theinsured is responsible for his/her decisions.iii) Life Insurance Corporation of India is only the name of the

Insurance Companyand LICs Fortune Plus is only the name of the unit linked life insurance contract anddoes

not in any way indicate the quality of the contract, its future prospects or returns.iv) Please know the associated risks

and the applicable charges, from your Insuranceagent or the Intermediary or policy document

of the insurer.v) The various funds offered under this contract are the names of the funds and do notin any way

indicate the quality of these plans, their future prospects and returns.vi) All benefits under the policy are also subject

to the Tax Laws and other financialenactme nts as they exist from time to time. Cooling off period:

If you are not satisfied with the Terms and Conditions of the policy, you may returnthe policy to us within 15 days.

Loan: No loan will be available under this plan. Assignment: Assignment will be allowed under this plan.

Exclusions: any amount exceeding it. From second year onwards each years premium will be 25% of

the first year premium.In case the Life Assured commits suicide at any time within one year, the Corporationwill

not entertain any claim by virtue of the policy except to the extent of thePolicyholder s Fund Value on death.

MARKET PLUS
IN THIS POLICY, THE INVESTMENT RISK IN

INVESTMENT PORTFOLIO ISBORNE BY THE POLICYHOLDE R" LICs MARKET PLUS:

This is a unit linked deferred pension plan. You can take the plan with or without risk cover. You can also choose

the level of cover within the limits, which will depend onwhether the policy is a Single premium or Regular premium

contract and on the levelof premium you agree to pay.The allocated premiums will be applied to purchase units as

per the Fund type chosen.Your Unit Account will be subject to deduction of charges as specified in the PolicyConditions

. The value of the units in the Unit Fund may increase or decrease,dependi ng on the investment return of the assets

representing the chosen Fund.i. Payment of Premiums: You may pay premiums regularly at yearly, half-

yearly or quarterly intervals over the term of the policy. The minimum annual premium will be Rs.5,

000/- increasing thereafter in multiples of Rs.1, 000/.Alternatively, a Single premium can be paid subject to a

minimum of Rs.10,000 and thereafter in multiples of Rs.1, 000.ii. Benefits:

A) Death Benefit: If the Life cover is opted for, the Sum Assured under the Basic Plan together with the

Fund Value of units either as a lump sum or as pension. In case the policy is taken without life cover, then the Fund Value

of the units held in thePolicyholder s Unit Account shall be payable either as a lump sum or as a pension.The

amount of pension will depend on the then prevailing immediate annuityrates under the annuity option chosen.

B) Benefit on Vesting: 30

On your surviving to the date of vesting,

the Fund Value of the units held inyour Unit Account will compulsorily be utilized to provide a pension based

onthe then prevailing immediate annuity rates under the relevant annuity option.However, you may opt to

commute up to one-third of the Benefit to be paid asa lump sum. Further, you may choose to purchase pension from

LIC or other life insurance company. Accident Benefit Option: If you have opted for life cover, you may opt

for Accident Benefit equal to life cover subject to minimum Rs. 25,000 andmaximum Rs. 50 lakh (taken all

policies with LIC of India and other insurers).In case of death by Accident, an additional sum equal to

Accident benefit will be payable.