UNIVERSITY OF MUMBAI PROJECT ON RURAL INSURANCE

SUBMITTED BY PRIYANKA HIRAN PROJECT GUIDE PROF. V.S. GOPAL

BACHELOR OF MANAGEMENT STUDIES SEMESTER V (2007-08)

V.E.S. COLLEGE OF ARTS SCIENCE ! COMMERCE SINDHI COLONY CHEMBUR " #0007$

UNIVERSITY OF MUMBAI PROJECT ON RURAL INSURANCE

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PROJECT GUIDE PROF. V.S. GOPAL

BACHELOR OF MANAGEMENT STUDIES SEMESTER V (2007-08)

V.E.S. COLLEGE OF ARTS SCIENCE ! COMMERCE SINDHI COLONY CHEMBUR " #0007$

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C E R T I F I C A T E
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P.1;*7) G%(+*
PROF. V.S. GOPAL

P.(,7(:-/
D.. J. K. PHADNIS

C1%.4* C1-1.+(,-)1. MRS. A. MARTINA

E?)*.,-/ E?-'(,*.

ACKNO@LEDGEMENT

I would like to thank with gratitude to PROF. V.S. GOPAL for guiding me throughout the project. i! knowledge and e"perience in the field of marketing ha! helped in #etter under!tanding of the intricacie! of the !u#ject. $ithout hi! co% operation it would ha! #een difficult to compile the project. I would al!o like to thank &R. S'R(S RA) O* +*e,elopment Officer- Fort- LI./ for taking their ,alua#le time out and pro,iding me with ,alua#le input! for the project. I would al!o like to thank our .o%ordinator &RS. A. &AR)I0A- college li#rar1 !taffm1 PAR(0)S and m1 friend! who ha,e directl1 or indirectl1 contri#uted toward! the completion of thi! project.

TABLE OF CONTENT
. AP)(RS 2. )OPI. I0)RO*'.)IO0 %Principle! of In!urance %)1pe! of In!urance %Rele,ance to pre!ent da1 pro#lem! %$hat i! Life In!urance 3. %Life In!urance ,! Other Sa,ing! I0S'RA0.( I0 I0*IA %)he In!urance Regulator1 and *e,elopment Authorit1 +IR*A/ %*utie!- Power! and Function! of IR*A 4. %India ,! Glo#al market I0)RO*'.)IO0 )O LIF( I0S'RA0.( .ORPORA)IO0 OF I0*IA %LI.5! di!tri#ution !tructure % Importance of Life In!urance &arketing 6. %Life In!urance &arketing &i" R'RAL I0S'RA0.( SIG0IFI.A0.( A0* LI.5S I0I)IA)IV( %Legal Pro,i!ion %)he Rural Sector 7. %)he Social Sector POLI.I(S I0)RO*'.(* 89 LI. FOR R'RAL 8(0(FI) %:ana!hree 8ima 9ojana %;ri!hi Shramik Samajik Surak!ha 9ojana %8unker 8ima 9ojana For andloom $ea,er! %Group In!urance Scheme for Aanganwadi $orker! and elper! <. =. %Scheme for Auto Rick!haw *ri,er! R(.O&&(*A)IO0S A0* S'GG(S)IO0S .O0.L'SIO0 PAG( 0OS.

EAECUTIVE SUMMARY
Life i! fraught with ten!ion! and apprehen!ion! regarding the future and what it hold! for the indi,idual. *e!pite all the planning and preparation one might make- no one can accuratel1 guarantee or predict how or when death might re!ult and the circum!tance! that might en!ue in it! aftermath. People generall1 regard in!urance a! a !cheme when and where 1ou ha,e to lo!e a lot to gain a little. 0e,erthele!!in!urance i! !till the mo!t relia#le tool an indi,idual can u!e to plan for hi! future. Life in!urance polic1 owner! can turn to the ca!h ,alue of the polic1 in ca!e of a financial emergenc1 when all a,enue! are either #locked or denied. )he1 know that the1 can a,ail of loan! #a!ed on their in!urance policie!. In!urance polic1 owner! can u!e the ca!h ,alue of their policie! to meet their long% term financial need! a! well. )he1 ma1 ha,e purpo!efull1 in,e!ted in in!urance to u!e the ca!h in the polic1 for their children>! future marriage e"pen!e! or higher education fee!. 0o financial in!titution can do what life in!urance doe!. 0o indu!tr1 can #ack it! product! with re!er,e! and !urplu! a! !ound a! tho!e of the in!urance indu!tr1. )he proof of !trength and !afet1 that in!urance companie! ha,e en!ured e,en under the mo!t ad,er!e of condition! i! a matter of pride for the entire in!urance indu!tr1. For generation after generation- life in!urance ha! #een acclaimed a! the ,er1 #enchmark of !ecurit1 again!t which the other indu!trie! are mea!ured. )he main purpo!e of thi! project wa! knowing the importance- the !cope and !ignificance of the concept of rural in!urance and !ocial !ecurit1.

CHAPTER $

INTRODUCTION
Some#od1 named ?&urph1? ha! once !tated !omething called ?law? which dictate! that if !omething wrong can happen- it will. )he pro#a#ilit1 of !omething happening which i! not going to ha,e fa,ora#le effect on it! en,ironment can #e termed a! ri!k. &ore the pro#a#ilit1 higher the ri!k. Since the ri!k it!elf depend! upon the happening of a future e,ent- 1ou cannot a!!ure 1our!elf that ri!k can #e eliminated in entiret1. )hat i! wh1 to reduce the impact of that unfa,ora#le e,ent@ e,er1 enterpri!e trie! to manage the ri!k !o that it! impact ma1 #e minimiAed in ca!e of happening of that e,ent. Ri!k &anagement toda1 ha! #ecome a ,er1 comple" and demanding profe!!ion. Ri!k manager! ha,e greater re!pon!i#ilitie! than e,er #efore. Increa!ingl1 the1 are #eing a!ked to manage #oth ri!k! and opportunitie! with an e1e on impro,ing !hareholder ,alue. Ri!k i! a #urden not onl1 to the indi,idual #ut to the !ociet1 a! well. )here e"i!t !e,eral techniBue! for meeting the pro#lem of ri!k- of which in!urance i! the mo!t practical method for handling major ri!k!. )he #u!ine!! of in!urance i! related to the protection of the economic ,alue of a!!et!. (,er1 a!!et ha! a ,alue. )he a!!et would ha,e #een created through the effort! of the owner- in the e"pectation that- either through the income generated therefrom or !ome other output- !ome of hi! need! would #e met. In the ca!e of factor1 or a cow- the production i! !old and income generated. In the ca!e of motor car- it pro,ide! comfort and con,enience in tran!portation. )here i! n direct income. )here i! a normall1 e"pected life time for the a!!et during which time it i! e"pected to perform. )he owner can !o manage hi! affair! that #1 the end of that lifetime- a !u#!titute i! made a,aila#le to en!ure that the ,alue or income i! not lo!t. If the a!!et get lo!t earlier#eing de!tro1ed or made non%functional- through an accident or other unfortunate e,ent- the owner and tho!e deri,ing #enefit! therefrom !uffer. In!urance i! a mechani!m that help! to reduce !uch ad,er!e con!eBuence!. )he .ommi!!ion on In!urance )erminolog1 of the American Ri!k and In!urance A!!ociation ha! defined in!urance a! follow!C

?In!urance i! the pooling of fortuitou! lo!!e! #1 tran!fer of !uch ri!k! to in!urer!- who agree to indemnif1 in!ured for !uch lo!!e!- to pro,ide other pecuniar1 #enefit! on their occurrence- or to render !er,ice! connected with the ri!k.? In!urance i! #a!ed on the principle of ri!k pooling. It i! the tran!fer of financial re!pon!i#ilit1 for the ri!k at the point of occurrence- and con,entionall1 in,ol,e! the in!urer in a commitment to pa1. Pro,ided the term! and condition! of the polic1 are met- pa1ment of the premium !ecure! a !ource of fund! in the e,ent of lo!!. )he in!ured i! thu! e"changing the uncertain co!t of lo!!e! for the certain and known co!t of the premium. )he co!t ari!ing from pure lo!!e! during the period of co,er are then fi"ed for the in!ured. )he !ta#iliAation of lo!! co!t! mean! that earning! are le!! !u!cepti#le to the effect! of pure lo!! than when the!e are retained. In!urance howe,er doe! not alwa1! full1 compen!ate the in!ured for lo!!e! !uffered. )hi! ma1 #e the re!ult of limitation of the lia#ilit1 accepted #1 the in!urer- poor management of in!tance #1 the in!ured leading to gap! in co,er or unin!ura#le lo!!e!.

PRINCIPLE OF INSURANCE
In!urance i! a contract #etween two partie! i.e. the in!urer and the in!ured. )he contract i! go,erned #1 certain principle! a! under%C 1. UTMOST GOOD FAITH 8oth the partie! i.e. the in!ured and the in!urer mu!t ha,e utmo!t good faith toward! each other- in re!pect of the in!urance contract. )he in!ured mu!t pro,ide to the in!urer complete- correct- and clear information of the !u#ject matter of in!urance. )he in!urer can a,oid hi! lia#ilit1 to pa1 compen!ation- if certain material fact! were not di!clo!ed #1 the in!ured at the time of taking the polic1.

For in!tance- at the time of taking a life in!urance polic1- the a!!ured doe! not di!clo!e of a pre,iou! heart attack- and if the a!!ured die! with another heart attack after the in!urance polic1- the in!urance compan1 ma1 refu!e to pa1 the claim. Again- a trader while taking a fire in!urance polic1 doe! not di!clo!e the pre,iou! occurrence of a fire in the factor1- and !u#!eBuentl1 after taking polic1- there i! another fire- the in!urance compan1 ma1 refu!e to pa1 the compen!ation- if it learn! a#out the pre,iou! occurrence of fire which wa! not di!clo!ed at the time of taking a polic1. Similarl1- the in!urer mu!t pro,ide complete- correct and clear information regarding the term! and condition! of the contract. Failure to pro,ide complete and correct material fact! regarding the mode and amount of premium and other detail!- make! the contract of in!urance ,oid at the di!cretion of the in!ured. )hi! principle i! applica#le to all contract! of in!urance- i.e. life- fire and marine in!urance. 2. INSURABLE INTERST It i! an important principle of in!urance. )he in!ured mu!t ha,e an in!ura#le intere!t in the !u#ject matter of in!urance. In!ura#le intere!t mean! !ome pecuniar1 or financial intere!t in the !u#ject matter. )he in!ured !tand! to gain due to it! e"i!tence and !uffer! a lo!! on account of it! non%e"i!tence. $hen In!ura#le Intere!t mu!t #e pre!entD % % % In life in!urance- the in!ura#le intere!t refer! to the life in!ured. )he in!ura#le intere!t mu!t e"i!t at the time of taking a life in!urance polic1. In marine in!urance- it i! enough if in!ura#le intere!t e"i!t! onl1 at the time of occurrence of the lo!!. In ca!e of fire and general in!urance- the in!ura#le intere!t mu!t pre!ent at the time of taking the polic1 and al!o at the time of occurrence of the lo!!. )he owner of a propert1 i! !aid to ha,e in!ura#le intere!t a! long a! he i! the owner of it. If he !ell! hi! propert1- he no longer ha! in!ura#le intere!t in the propert1. #1 fire. owe,er- it i! to #e noted that to ha,e in!ura#le intere!t in the propert1- it i! not nece!!ar1 to #e the owner of that propert1. (g. )he #anker who ha! ad,anced loan on the !ecurit1 of the propert1 ha! an in!ura#le intere!t in that propert1. e cannot claim compen!ation if the propert1 which he ha! alread1 !old get! de!tro1ed

In ca!e of a hou!e on lea!e- #oth the le!!or and le!!ee ha,e !uch an in!ura#le intere!t. Similarl1- a tru!tee holding propert1 on #ehalf of another ha! the in!ura#le intere!t in that propert1. Like principle of utmo!t good faith- the principle of in!ura#le intere!t i! applica#le to all contract! of in!urance. 3. PRINCIPLE OF IDEMNITY )hi! principle i! applica#le to fire- marine and general in!urance. It i! not applica#le to life in!urance contract!. )hi! principle i! not applica#le to life in!urance #ecau!e the lo!! of life or the lo!! of a leg or hand or an1 part of the #od1 due to an accident can ne,er #e mea!ured in monetar1 term!. In the ca!e of death- the actual !um a!!ured i! paid and in ca!e of an accident- the a!!urer agree! to pa1 a !um of mone1 called #enefit mone1. Indemnit1 mean! a guarantee or an a!!urance to put the in!ured in the !ame po!ition in which he wa! immediatel1 prior to the happening of the uncertain e,ent. )he in!urer undertake! to make good the lo!!. 'nder thi! principle- the in!urer agree! to compen!ate the in!ured for the actual lo!! !uffered. )he amount of actual compen!ation i! limited to the amount a!!ured or the actual lo!! whiche,er i! le!!. For in!tance- if a propert1 worth R! 3 lakh! i! in!ured for R! 2 lakh- and if the entire propert1 i! de!tro1ed #1 fire- then the in!ured per!on can claim compen!ation for R!. 2 lakh. Another e"ample of principle of indemnit1. If a car wa! in!ured for R! 3 lakh and if it wa! depreciated #1 R!. 2-7E-EEE at that time of it! lo!! due to an accident- then the owner of the car can claim onl1 R!. 7E-EEE +the ,alue of the car on the da1 of it! lo!!/ )he purpo!e of thi! principle i! to put the in!ured in the !ame po!ition prior to the happening of the e,ent. Another o#ject i! to !ee to it that the in!ured doe! not make an1 profit #1 reco,ering more than the amount of financial lo!! !uffered #1 him. 4. PRINCIPLE OF CONTRIBUTION )hi! principle i! a Fcorollar15 of the principle of indemnit1. It i! applica#le to all contract! of indemnit1- where the in!ured ha! taken out more than one polic1 on the !ame matter.

'nder thi! principle- the in!ured can claim the compen!ation onl1 to the e"tent of actual lo!! either from an1 one in!urer or from all in!urer!. If one of in!urer! pa1 full compen!ation- then that in!urer can claim proportionate claim from other in!urer!. (g. If &r. Sand1 in!ure! hi! propert1 worth R!. GE-EEE with two in!urer!- !a1 HA"e LtdI for R!. GE-EEE and HJed LtdI for R!. <E-EEE. if the actual propert1 de!tro1ed i! worth R!. <E-EEE either then &r. Sand1 can claim the full lo!! of R!. <E-EEE from A"e Ltd or Jed Ltd- or he can claim R!. 4<EEE from A"e Ltd and R!. 36-EEE from Jed Ltd i.e. in the proportion of 4C3 +GE-EEEC<E-EEE/. )hu!- if the in!ured claim! full amount of compen!ation from one in!urer- then he cannot claim from other in!urer and make a profit. Again- if one in!urance compan1 pa1! the full compen!ation- then it can reco,er the proportionate contri#ution from the other in!urance compan1. 5. PRINCIPLE OF SUBROGATION )hi! principle i! another Fcorollar15 of the principle of indemnit1. It i! applica#le to all contract! of indemnit1. A! per thi! principle- after the in!ured i! compen!ated for the lo!! due to damage to propert1 in!ured- then the right of owner!hip of !uch propert1 pa!!e! on to the in!urer. )hi! principle i! applica#le onl1 when the damaged propert1 ha! an1 ,alue after the e,ent cau!ing damage. )he in!urer in entitled to the #enefit out of !u#rogation right! onl1 to the e"tent of the amount he ha! paid to in!ured a! compen!ation. (g. If &r. And1 in!ure! hi! hou!e for R!. 2E lakh!. If the hou!e i! totall1 gutted due to the negligence of hi! neigh#our &r. Land1. )he in!urance compan1 !hall !ettle the claim of &r. And1 for R!. 2E lakh!. At the !ame time- it can file a ca!e again!t &r. Land1 for R!.3E lakh!- the market ,alue of the hou!e. If the in!urance compan1 win! the ca!e and collect! R!. 23 lakh! from &r. Land1- then the in!urance compan1 will retain R!. 2E lakh! +which it ha! paid to &r. And1/ plu! other e"pen!e! !uch a! court fee!. )he #alance amount- if an1 will #e returned to &r. And1- the in!ured. 6. PRINCIPLE OF LOSS MINIMISATION 'nder thi! principle- it i! the dut1 of the in!ured to take all the po!!i#le !tep! to minimiAe the lo!! to the in!ured propert1 on the happening of uncertain e,ent.

(g. If the fire take! place- the in!ured mu!t take nece!!ar1 !tep! to put off the fire and to !a,e the propert1 a! far a! po!!i#le. 7. PRINCIPLE OF CAUSA PROXIMA )he lo!! to the inured propert1 can #e cau!ed #1 more than one cau!e in !ucce!!ion to one another. )he propert1 ma1 #e in!ured again!t !ome cau!e! and not again!t all cau!e!. In !uch an in!tance- the pro"imate cau!e or neare!t cau!e of lo!! i! to #e found out. If the pro"imate cau!e i! the one which i! in!ured again!t- the in!urance compan1 i! #ound to pa1 the compen!ation. If the pro"imate cau!e i! one which i! not in!uredthen the in!urance compan1 i! not #ound to pa1 the lo!! to the in!ured. (g. If the in!ured )ea #o"e! get damaged doe to water #eing entering the !hip. )he water entered the !hip due to !ea rat! making a hole to the !hip. )hu!- the lo!! i! cau!ed due to two rea!on!C Sra $ater- and Sea Rat!. )he neare!t and direct cau!e of damage to tea #o"e! i! due to !ea water. If the tea #o"e! were in!ured again!t the lo!! due to !ea water- then the in!urance compan1 i! #ound to pa1 the compen!ation.

TYPES OF INSURANCE
% % % % LIFE INSURANCE FIRE INSURANCE MARINE INSURANCE MISCELLANEOUS INSURANCE

LIFE INSURANCE
The life insurance is a contract between the assurer and the assured, whereby the assurer agrees to compensate to the assured a certain agreed sum on the expiry of a certain period. Or on death, whichever is earlier, for a consideration, i.e. premium.

FIRE INSURANCE
The fire insurance protects the insured against the loss of property due to fire. There is always a risk to property and goods of being destroyed by fire. A fire insurance contract is

as an agreement whereby the insured in return for consideration (premium) undertakes to indemnify the insured against loss to property due to fire.

MARINE INSURANCE
arine insurance is a contract under which the insurer undertakes to indemnify the insured against losses, caused due to perils of sea. !t may be defined as a form of insurance contract covering loss or damage to vessels or to cargo or passengers during transportation on the high seas.

RELE ANCE TO PRESENT!DAY PROBLEMS"NEEDS OF THE SOCIETY" COUNTRY

)he late!t !erie! of #om# attack!- attack on parliament- attack on A1od1a- attack! of the &aoi!t!- nature calamitie! like t!unami- flood! and drought- ragging are pre,ailed in the countr1 and need not to !a1 a#out the farmer who ha! #een in!ecure a#out rain!!eed!- crop! and !uita#le price for hi! crop. In de,eloped countrie!- the owner! ha,e in!ured e,en pet dog!. $herea! in India- a#out KE percent of human #eing! and major natural re!ource! ha,e not #een in!ured in glo#aliAation era. 8a!ed on the a#o,e fact- thi! !eminar ha! Buite rele,ance to the pre!ent da1 pro#lem! of life in!urance- non%life in!urance- rural health in!urance- ragging in!urance- natural calamitie! in!urance- pen!ion in!urance and terrori!m in!urance. After li#eraliAation of in!urance !ector- in!urer! ha,e introduced inno,ati,e product and tailor made product! which are a#!olutel1 !it to rural population. (ffort! at increa!ing con!umer awarene!! and putting the regulator1 framework for protection of polic1holder5! intere!t ha,e #een made #oth the indu!tr1 and regulator1 le,el. Glo#al market condition! ha,e al!o re!ulted in dri,ing down premium rate!Lcharge! in re!pect of certain product! and in impro,ing the Bualit1 of !er,ice! offered #1 the in!urer. Finall1- in!urance !ector ha! #een penetrating in India- thu! the propo!ed !eminar ha! Buite rele,ant to the !ociet1.

#HAT IS LIFE INSURANCE$

Life in!urance i! a contract that pledge! pa1ment of an amount to the per!on a!!ured +or hi! nominee/ on the happening of the e,ent in!ured again!t. )he contract i! ,alid for pa1ment of the in!ured amount duringC )he date of maturit1- or Specified date! at periodic inter,al!- or 'nfortunate death- if it occur! earlier.

Among other thing!- the contract al!o pro,ide! for the pa1ment of premium periodicall1 to the .orporation #1 the polic1holder. Life in!urance i! uni,er!all1 acknowledged to #e an in!titution@ which eliminate! >ri!k>- !u#!tituting certaint1 for uncertaint1 and come! to the timel1 aid of the famil1 in the unfortunate e,ent of death of the #readwinner. 81 and large- life in!urance i! ci,iliAation5! partial !olution to the pro#lem! cau!ed #1 death. Life in!urance- in !hort- i! concerned with two haAard! that !tand acro!! the life%path of e,er1 per!onC )hat of d1ing prematurel1 lea,e! a dependent famil1 to fend for it!elf. )hat of li,ing till old age without ,i!i#le mean! of !upport.

LIFE INSURANCE "S OTHER SA INGS

C%&'()*' %+ I&,-()&*./ A contract of in!urance i! a contract of utmo!t good faith technicall1 known a! u#errima fide!. )he doctrine of di!clo!ing all material fact! i! em#odied in thi!

important principle- which applie! to all form! of in!urance. At the time of taking a polic1- polic1holder !hould en!ure that all Bue!tion! in the propo!al form are correctl1 an!wered. An1 mi!repre!entation- non%di!clo!ure or fraud in an1 document leading to the acceptance of the ri!k would render the in!urance contract null and ,oid. P(%'.*'0%&/ Sa,ing! through life in!urance guarantee full protection again!t ri!k of death of the !a,er. Al!o- in ca!e of demi!e- life in!urance a!!ure! pa1ment of the entire amount a!!ured +with #onu!e! where,er applica#le/ wherea! in other !a,ing! !cheme!- onl1 the amount !a,ed +with intere!t/ i! pa1a#le. A01 '% T2(0+'/ Life in!urance encourage! >thrift>. It allow! long%term !a,ing! !ince pa1ment! can #e made effortle!!l1 #ecau!e of the >ea!1 in!tallment> facilit1 #uilt into the !cheme. +Premium pa1ment for in!urance i! monthl1- Buarterl1- half 1earl1 or 1earl1/. For example: )he Salar1 Sa,ing Scheme popularl1 known a! SSS pro,ide! a con,enient method of pa1ing premium each month #1 deduction from one>! !alar1. In thi! ca!e the emplo1er directl1 pa1! the deducted premium to LI.. L03-010'4/ In ca!e of in!urance- it i! ea!1 to acBuire loan! on the !ole !ecurit1 of an1 polic1 that ha! acBuired loan ,alue. 8e!ide!- a life in!urance polic1 i! al!o generall1 accepted a! !ecurit1- e,en for a commercial loan. T)5 R.60.+/ Life In!urance i! the #e!t wa1 to enjo1 ta" deduction! on income ta" and wealth ta". )hi! i! a,aila#le for amount! paid #1 wa1 of premium for life in!urance !u#ject to income ta" rate! in force. A!!e!!ee! can al!o a,ail of pro,i!ion! in the law for ta" relief. In !uch ca!e! the a!!ured in effect pa1! a lower premium for in!urance than otherwi!e.

M%&.4 #2.& Y%- N..1 I'/ A polic1 that ha! a !uita#le in!urance plan or a com#ination of different plan! can #e effecti,el1 u!ed to meet certain monetar1 need! that ma1 ari!e from time%to%time. .hildren>! education- !tart%in%life or marriage pro,i!ion or e,en periodical need! for ca!h o,er a !tretch of time can #e le!! !tre!!ful with the help of the!e policie!. Alternati,el1- polic1 mone1 can #e made a,aila#le at the time of one>! retirement from !er,ice and u!ed for an1 !pecific purpo!e- !uch a!- purcha!e of a hou!e or for other in,e!tment!.

#HO CAN BUY A POLICY$

An1 per!on who ha! attained majorit1 and i! eligi#le to enter into a ,alid contract can in!ure him!elfLher!elf and tho!e in whom heL!he ha! in!ura#le intere!t. Policie! can al!o #e taken- !u#ject to certain condition!- on the life of one>! !pou!e or children. $hile underwriting propo!al!- certain factor! !uch a! the polic1holder5! !tate of health- the proponent>! income and other rele,ant factor! are con!idered #1 the .orporation.

CHAPTER 2 INSURANCE IN INDIA

HISTORY
)he in!urance lea!ure! ha! a hi!tor1 which date! #ack to the 1ear 27EE5!. )he #u!ine!! of in!urance !tarted with ma!!i,e #u!ine!!. )rader!- who u!ed to gather in the Llo1d5! .offee hou!e in (ngland- agreed to !hare their lo!!e! to their good! while #eing carried #1 !hip!. )he lo!!e! u!ed to occur #ecau!e of pirate! who ro##ed on the high !ea! or #ecau!e of #ad weather !poiling the good! on !inking the !hip!. )he fir!t in!urance polic1 wa! i!!ued in 27K4 in (ngland. In India- in!urance #egan n 2K=E with life in!urance #eing tran!acted #1 an (ngli!h compan1- the (uropean and the Al#ert. )he fir!t Indian in!urance compan1 wa! 8om#a1 &utual a!!urance Societ1 Ltd. Formed in 2K=E. 8ut the #u!ine!! of in!urance in India e"i!ting form !tarted in the 1ear 1717 with the e!ta#li!hment of '2. O(0.&')6 L0+. I&,-()&*. C%89)&4 0& C)6*-''). )hi! compan1 wa! !tarted #1 the (uropean! in the countr1. In the !ame 1ear the 8riti!h Go,ernment #rought out the in!urance act. )hi! wa! followed #1 the formation of the Oriental Life A!!urance compan1 in 2K=6. Prior to thi! )he )riton In!urance .ompan1 wa! e!ta#li!hed in 2K7E which dealt onl1 in non%life in!urance #u!ine!!. )hi! wa! followed #1 the formation of the 8harat in 2KG< and the (mpire of India in 2KG=. Later with the Swade!hi mo,ement and the !truggle for Independencecompanie! likeindu!tan .o%operati,e! in .alcutta- )he 'nited India in &adra!)he 8om#a1 Life in 8om#a1- )he 0ational in .alcutta- )he new India in 8om#a1)he :upiter in 8om#a1 and the Lak!hmi in 0ew *elhi were Formed in the earl1 2GEE5!. )he Indian Life A!!urance .ompanie! Act enacted a! the fir!t !tructure to regulate the life In!urance #u!ine!! in the 1ear 2G23. In the 1ear 2G3K the Indian In!urance .ompanie! Act ena#led the go,ernment to collect !tati!tical information

a#out #oth Life and 0on%life In!urance #u!ine!!. In the 1ear 2G4K the earlier legi!lation con!olidated and amended #1 the In!urance Act with the o#jecti,e of protecting the intere!t of the in!uring pu#lic. 81 the independence period the tall1 of in!urance companie! in India reached to a! high a! 367. )he!e companie! in the po!t independence period !tarted unethical practice! to gain #u!ine!!. )hi! affected the in!uring people #adl1. In tho!e uncertain atmo!phere the finance mini!ter Shri. ..* *e!hmukh- in con!ideration with Prime &ini!ter Shri. :awaharlal 0ehru took a momentou! deci!ion to nationaliAe the Life In!urance #u!ine!! #1 promulgating the ordinance and taking o,er the management of all Life In!urance .ompanie! in the 1ear 2G7<. )he Secrec1 wa! nece!!ar1 to pre,ent the companie! from di,erting the polic1 holder!5 mone1- !o there wa! no di!cu!!ion at all in the parliament on the !u#ject. On 1:'2 ;)&-)(4 1:56 '2. +0&)&*. 80&0,'.( )&&%-&*.1 T2. N)'0%&)60<)'0%& %+ '2. L0+. I&,-()&*. =-,0&.,, '2-, ')>0&? %@.( '2. 8)&)?.8.&' *%&'(%6 %+ )66 I&,-()&*. C%89)&0., 0&*6-10&? +%(.0?& *%89)&0.,. On 3Eth :anuar1 all companie! were taken o,er #1 64 nominated cu!todian!. )he1 managed till 1,' S.9'.8=.( 1:56 A2.& L0+. I&,-()&*. C%(9%()'0%& %+ I&10) A), .,')=60,2.1 under the general direction and control of the mini!tr1 of In!urance. )he 1ear 2G7= !aw the formation of the General in!urance .ouncil- a wing of the In!urance A!!ociation of India- re!pon!i#le for forming the code of conduct for en!uring fal!e conduct and !ocial #u!ine!! practice!. In 2G<K the In!urance Act recommended to regulate in,e!tment! and !et minimum !ol,enc1 margin! and the )ariff Ad,i!or1 .ommittee !et up. )he General In!urance 8u!ine!! 0ationaliAation Act of 2G=3 &)'0%&)60<.1 '2. ?.&.()6 0&,-()&*. =-,0&.,, 0& I&10) A0'2 .++.*' +%( 1,' ;)&-)(4 1:73. 2E= General in!urance companie! were amalgamated and grouped into 6 companie! ,iA. )he 0ational In!urance .ompan1)he oriental in!urance .ompan1 Ltd. and the 'nited India In!urance .ompan1 Ltd. Al!o GI. wa! incorporated a! a compan1. 'ntil the 2GGE5! the!e were the onl1 In!urance companie! operating in India. In April- 2GG4 Go,ernment- !et up a high power committee headed #1 &r. R.0. &alhotra to !ugge!t reform! in in!urance network and make it more effecti,e and competiti,e. R.0. &alhotra wa! former R8I go,ernor. )he &alhotra committee wa! !etup with the o#jecti,e of complementing the reform! initiated in the financial !ector. )he reform! were aimed at Hcreating a more efficient and competiti,e financial !1!tem !uita#le for the reBuirement! of the econom1 keeping in mind the !tructural

change! currentl1 underwa1 and recogniAing that in!urance i! an important part of o,erall financial !1!tem where it wa! nece!!ar1 to addre!! the need! to !imilar reform!MI In 2GG6- the committee !u#mitted the report and !ome ke1 recommendation includedC 2. Structure Go,ernment !take in the in!urance .ompanie! to #e #rought down to 7EN Go,ernment !hould take o,er the holding! of GI. and it! !u#!idiarie! !o that the!e !u#!idiarie! can act a! independent corporation!. All the in!urance companie! !hould #e gi,en greater freedom to operate. 3. .ompetition Pri,ate companie! with a minimum paid up capital of R!. 2#n !hould #e allowed to enter the indu!tr1. 0o compan1 !hould deal in Life and General In!urance through a !ingle entit1. Foreign companie! ma1 #e allowed to enter indu!tr1 in colla#oration with dome!tic companie!. Po!tal Life In!urance !hould #e allowed to operate in the rural market. Onl1 one !tate Le,el Life In!urance .ompan1 !hould #e allowed to operate in each !tate. 4. Regulator1 8od1 )he In!urance Act !hould #e changed and In!urance Regulator1 #od1 !hould #e !et up .ontroller of In!urance +.urrentl1 a part from the Finance mini!tr1/ !hould #e made independent. 6. In,e!tment! &andator1 in,e!tment! of LI. Life Fund in go,ernment !ecuritie! !hould #e reduced from =7N to 7EN GI. and it! !u#!idiarie! are not to hold more than 7N in an1 compan1+)here currentl1 holding! !hould #e #rought down to thi! le,el o,er a period of time/

7. .u!tomer Ser,ice LI. !hould pa1 intere!t on dela1! in pa1ment! #e1ond 4E da1!. In!urance .ompanie! mu!t #e encouraged to !et up unit linked pen!ion plan!. .omputeriAation! of operation! and updating of technolog1 to #e carried out in the in!urance indu!tr1. )he committee empha!iAed that in order to impro,e the cu!tomer !er,ice! and increa!e the co,erage of the in!urance indu!tr1 !hould #e opened up to competition. 8ut at the !ame time- the committee felt the need to e"erci!e caution a! an1 failure on the part of new pla1er! could ruin the pu#lic confidence in the indu!tr1. ence it wa! decided to allow competition in a limited wa1 #1 !tipulating the minimum capital reBuirement of R!.2EE crore!. )he committee felt the need to pro,ide greater autonom1 to in!urance companie! in order to impro,e their performance and ena#le them to act a! independent companie! with economic opportunitie!. For thi! purpo!e it had propo!ed !etting up of an independent #od1. )hu! in the 1ear 2GG= the In!urance Regulator1 and *e,elopment authorit1 +IR*A/ wa! formed. From the 1ear 3EEE thi! IR*A !tarted gi,ing licen!e to pri,ate in!urer! according to the term! of the &alhotra .ommittee. I.I.I Prudential and *F. Standard Life were the fir!t pri,ate pla1er! to !ell Life In!urance polic1 in India. In 3EE2 Ra1al Sundaram alliance #ecame the 2!t 0on%Life in!urance compan1 to !ell a polic1. In the 1ear 3EE3 another major !etup of allowing #ank! to !ell in!urance policie! wa! taken.

THE INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)

)he In!urance Act- 2G4K had pro,ided for !etting up of the controller of In!urance to act a! a !trong and powerful !uper,i!or1 and regulate authorit1 of in!urance. Po!t nationaliAation- the role of .ontroller of in!urance dimini!hed con!idera#l1 in !ignificance !ince the Go,ernment owned the in!urance companie!. 8ut the !cenario changed with the pri,ate and foreign companie! fora1ing in to the in!urance !ector. )hi! nece!!itated the need for !trong- independent and autonomou! In!urance regulator1 Authorit1 wa! felt. A! the enacting of legi!lation would ha,e taken time- the then go,ernment con!tituted through a Go,ernment re!olution an interim in!urance Regulator1 Authorit1 pending the enactment of a comprehen!i,e legi!lation. )he in!urance regulator1 and *e,elopment Authorit1 Act- 2GGG i! an act to pro,ide for the e!ta#li!hment of an authorit1 to protect the intere!t of holder! of in!urance policie!- to regulate- promote and en!ure orderl1 growth of the in!urance indu!tr1 and for matter! connected therewith or incidental there to and further to amend the in!urance Act- 2G4K- the Life In!urance .orporation Act- 2G7< and the General in!urance 8u!ine!! +0ationaliAation!/ Act- 2G=3 to end the monopol1 of the Life In!urance .orporation of India+ for life in!urance #u!ine!! / and General In!urance .orporation and it! !u#!idiarie!+ for general in!urance #u!ine!!/. )he act e"tend! to the whole of India and will come into force on !uch date a! the .entral Go,ernment ma1- #1 notification in the official GaAette !pecif1. *ifferent date! ma1 #e appointed for different pro,i!ion! of thi! act. )he act ha! defined certain term!- !ome of the mo!t important one! are a! follow!C% Appointed da1 mean! the date on which the Authorit1 i! e!ta#li!hed under the act.

Authorit1 mean! the e!ta#li!hed under thi! act. Interim In!urance Regulator1 Authorit1 mean! the In!urance Regulator1 Authorit1 !et up #1 the Go,ernment through Re!olution 0o. 2=+3/L G6%In!%V dated the 34 rd :anuar12GG<. $ord! and e"pre!!ion! u!ed and not defined in thi! act #ut defined in the In!urance Act- 2G4K or the life In!urance .orporation Act- 2G7< or the General In!urance 8u!ine!! +0ationaliAation!/ Act- 2G=3 !hall ha,e the meaning! re!pecti,el1 a!!igned to them in tho!e act! A new definition of HIndian in!urance .ompan15 ha! #een in!erted. HIndian in!urance .ompan1I &ean! an1 in!urer #eing a compan1 a/ $hich i! formed and regi!tered under the .ompanie! act- 2G7< #/ In which the aggregate holding! of eBuit1 !hare! #1 a foreign compan1- either #1 it!elf or through it! !u#!idiar1 companie! or it! nominee!- do not e"ceed twent1%!i" percent. Paid up capital in !uch Indian in!urance compan1. c/ $ho!e !ole purpo!e it to carr1 on life in!urance #u!ine!!- general in!urance #u!ine!! or re%in!urance #u!ine!!. )he authorit1 i! a ten mem#er team con!i!ting of a/ A .hairman #/ Fi,e whole time mem#er!@ c/ Four part time mem#er!. All the!e mem#er! are appointed #1 the Go,ernment of India.

DUTIES PO#ERS AND FUNCTIONS OF THE IRDA

Section 26 of the IR*A Act- 2GGG la1! down the dutie!- power! and function! of the IR*A. 2. Su#ject to the pro,i!ion! of the act and an1 other law for the time #eing in force- the IR*A !hall ha,e the dut1 regulate promote and en!ure orderl1 growth of the in!urance #u!ine!! and re%in!urance #u!ine!!. 3. $ithout prejudice to the generalit1 of the pro,i!ion! contained in !u#%!ection +2/- the power! and function! of the IR*A !hall includeC a/ I!!ue to the applicant a certificate of regi!tration- renew- modif1withdraw- !u!pend or cancel !uch regi!tration@ #/ Protection of the intere!t of the polic1 holder! in matter! concerning the a!!igning of polic1- nomination #1 polic1 holder!- in!ura#le intere!t- !ettlement of in!urance claim!- !urrender ,alue of polic1 and other term! and condition! of contract! of in!urance@ c/ Specif1ing reBui!ite Bualification!- code of conduct and practical training for intermediar1 or in!urance intermediarie! and agent!@ d/ Specif1ing the code of conduct for !ur,e1or! and lo!! a!!e!!or!@ e/ Promoting efficienc1 in the conduct of the in!urance #u!ine!!@ f/ Promoting and regulating profe!!ional organiAation! connected with in!urance and re%in!urance #u!ine!!@ g/ Le,1ing fee! and other charge! for carr1ing out the purpo!e! of thi! Act@ h/ .alling for information from- undertaking in!pection of- conducting in Buerie! and in,e!tigation! including audit of the in!urer!intermediarie!- in!urance intermediarie! and other organiAation! connected wit the in!urance #u!ine!!@ i/ .ontrol and regulation of the rat!- ad,antage!- term! and condition! that ma1 #e offered #1 in!urer! in re!pect of general in!urance #u!ine!! not !o controlled and regulated #1 the )ariff Ad,i!or1 .ommittee under !ection <6' of the In!urance Act- 2G4K@

j/ Specif1ing the form and manner in which #ook! of account! !hall #e maintained and !tatement! of account! !hall #e rendered #1 in!urer! and other in!urance intermediarie!@ k/ Regulating in,e!tment! of fund! #1 in!urance companie!@ l/ Regulating maintenance of margin of !ol,enc1@ m/ Adjudication of di!pute! #etween in!urer! and intermediarie! or in!urance intermediarie!@ n/ Super,i!ing the functioning of the )ariff Ad,i!or1 .ommittee@ o/ Specif1ing the percentage of premium income of the in!urer to finance !cheme! for promoting and regulating profe!!ional organiAation! referred to in clau!e +f/ p/ Specif1ing the percentage of life in!urance #u!ine!! and general in!urance #u!ine!! to #e undertaken #1 the in!urer in the rural or !ocial !ector@ and B/ ("erci!ing !uch other power! a! ma1 #e pre!cri#ed. )hu! the in!urance !ector of India wa! opened up in the 1ear 2GGG. All companie! around the world realiAed the ,a!t potential in the Indian market. )hu! companie! from all o,er the world ru!hed to find a foothold in the lucrati,e Indian market. (,olution of technolog1 and con,ergence of !er,ice! witne!!ed the in!urance product! #eing offered #1 #ank! al!o. )he potential for growth of the Indian in!urance indu!tr1 can #e gauged #1 the fact that the Indian in!urance market regi!tered the highe!t growth in the A!ian region e,en though India5! glo#al !hare of in!urance premium i! le!! than E.7 N +2GGG/ compared with that of '.S.A at 36.3 N and that of :apan at 32 N. )he pri,ate pla1er! are well aware that onl1 37 N of the in!ura#le population ha! #een e"tended co,erwhich mean! that market penetration i! low- and the potential to e"ploit it i! ,er1 high. Some of the other factor that make the Indian In!urance Indu!tr1 highl1 lucrati,e are that the In!urance premium per capita i! ,er1 low i.e. 'S O= and there i! pre!ence of huge middle cla!! of per!on 4EE million. Al!o the lack of comprehen!i,e !ocial

!ecurit1 !1!temL!tate #enefit! and welfare mean! that demand for pen!ion product! i! high.

INDIA "S GLOBAL MARBET

India5! in!urance penetration i! a! low a! 2.G7 N and rank! 72 in the world. In premium collection the record i! #etter- at 34 rd po!ition. )he ratio of premium collected to the gro!! dome!tic product +G*P/ i! a mere E.7K N compared with an a,erage of =.2 N in mo!t indu!trialiAed nation!. India i! !till at ,er1 na!cent !tage with an OK%G +R!. 6EE%67E/ pre capita e"penditure on in!urance out of which O3 to O3.7 +R!.2EE%27E/ will #e on general in!urance. )hi! i! #ecau!e in the countr1 non% life in!urance i! not gi,en the nece!!ar1 importance and i! con!idered a! an unnece!!ar1 e"pen!e. )he opening up of the In!urance !ector wa! a part of the ongoing li#eraliAation in the financial !ector of India. )he domain of !tate%run in!urance companie! wa! thrown open to pri,ate enterpri!e! on *ecem#er =- 2GGG- with the introduction of the IR*A i.e. In!urance Regulator1 and *e,elopment Authorit1 #ill. India- with a#out 3EE million middle cla!! hou!ehold!- pre!ent! a huge untapped potential for pla1er! in the in!urance indu!tr1. Saturation of market! in man1 de,eloped economie! ha! made the Indian market e,en more attracti,e for glo#al in!urance major!. $ith the per capita income in India e"pected to grow at o,er <N for the ne"t 2E 1ear! and with impro,ement in awarene!! le,el!- the demand for in!urance i! e"pected to grow at an attracti,e rate in India. )he &onitor Group ha! e!timated that the life in!urance market will grow from R!.32K #illion in 2GGK to R!.2EE4 #illion #1 3EEK. )he .onfederation of Indian Indu!trie! +.II/ ha! projected growth of life In!urance premium from R!. 67E #illion at the pre!ent to R!. 26EE #illion #1 3EEG and pen!ion fund! from R!. 2E #illion to R!. 26E #illion. )he growth in non%Life premium! i! e"pected to increa!e from R!. =7 #illion to R!. 4=7 #illion

CHAPTER B INTRODUCTION TO LIFE INSURANCE CORPORATION OF INDIA

Life Insurance Corporation of India

T.%4) )28 ,-'* (4 LIC

(,er1 da1 the1 wake up to the fact that more than 2=E million li,e! are part of their famil1 called LI.. )he1 are hum#led #1 the magnitude of the re!pon!i#ilit1 the1 carr1 and realiAe that the li,e! that are a!!ociated with them are ,er1 ,alua#le indeed. Although thi! journe1 !tarted fi,e decade! ago- the1 are !till con!ciou! of the fact that- while in!urance ma1 #e a #u!ine!! for them- #eing part of million! of li,e! e,er1 da1 for the pa!t 7E 1ear! ha! #een a proce!! called )R'S).

50 Years of Trust Thy Name Is LIC

MISSION ?("plore and enhance the Bualit1 of life of people through financial !ecurit1 #1 pro,iding product! and !er,ice! of a!pired attri#ute! with competiti,e return!- and #1 rendering re!ource! for economic de,elopment.? ISION ?A tran!%nationall1 competiti,e financial conglomerate of !ignificance to !ocietie! and Pride of India.? OB;ECTI ES

Spread Life In!urance widel1 and in particular to the rural area! and to the !ociall1 and economicall1 #ackward cla!!e! with a ,iew to reaching all in!ura#le per!on! in the countr1 and pro,iding them adeBuate financial co,er again!t death at a rea!ona#le co!t.

&a"imiAe mo#iliAation of people>! !a,ing! #1 making in!urance%linked !a,ing! adeBuatel1 attracti,e. 8ear in mind- in the in,e!tment of fund!- the primar1 o#ligation to it! polic1holder!- who!e mone1 it hold! in tru!t- without lo!ing !ight of the intere!t of the communit1 a! a whole@ the fund! to #e deplo1ed to the #e!t ad,antage of the in,e!tor! a! well a! the communit1 a! a whole- keeping in ,iew national prioritie! and o#ligation! of attracti,e return.

.onduct #u!ine!! with utmo!t econom1 and with the full realiAation that the mone1! #elong to the polic1holder!. Act a! tru!tee! of the in!ured pu#lic in their indi,idual and collecti,e capacitie!. &eet the ,ariou! life in!urance need! of the communit1 that would ari!e in the changing !ocial and economic en,ironment. In,ol,e all people working in the .orporation to the #e!t of their capa#ilit1 in furthering the intere!t! of the in!ured pu#lic #1 pro,iding efficient !er,ice with courte!1.

Promote among!t all agent! and emplo1ee! of the .orporation a !en!e of participation- pride and jo# !ati!faction through di!charge of their dutie! with dedication toward! achie,ement of .orporate O#jecti,e.

$e ha,e !een the formation of LI. and the circum!tance! at that time in the earlier chapter!- in addition to that- LI. had 7 Aonal office!- 44 di,i!ional office! and 323 #ranch office!- apart from it! corporate office in the 1ear 2G7<. Since life in!urance contract! are long term contract! and during the currenc1 of the polic1 it reBuire! a ,ariet1 of !er,ice! need wa! felt in the later 1ear! to e"pand the operation! and place a #ranch office at each di!trict headBuarter. Re%organiAation of LI. took place and large num#er! of new #ranch office! were opened. A! a re!ult of re%organiAation !er,icing function! were tran!ferred to the #ranche!- and #ranche! were made accounting unit!. It worked wonder! with the performance of the corporation. It ma1 #e !een that from a#out 3EE.EE crore! of 0ew 8u!ine!! in 2G7= the corporation cro!!ed 2EEE.EE crore! onl1 in the 1ear 2G<G%=E- and it took another 2E 1ear! for LI. to cro!! 3EEE.EE crore mark of new #u!ine!!. 8ut with re%organiAation happening in the earl1 eightie!- #1 2GK7%K< LI. had alread1 cro!!ed =EEE.EE crore Sum A!!ured on new policie!. )oda1 LI. function! with 3E6K full1 computeriAed #ranch office!- 2EE di,i!ional office!- = Aonal office! and the corporate office. LI.5! $ide Area 0etwork co,er! 2EE di,i!ional office! and connect! all the #ranche! through a &etro Area 0etwork. LI. ha! tied up with !ome 8ank! and Ser,ice pro,ider! to offer on%line premium collection facilit1 in !elected citie!. LI.5! (.S and A)& premium pa1ment facilit1 i! an addition to cu!tomer con,enience. Apart from on%line ;io!k! and IVRS- Info .enter! ha,e #een commi!!ioned at &um#ai- Ahmeda#ad- 8angalore- .hennai1dera#ad- ;olkata- 0ew *elhi- Pune and man1 other citie!. $ith a ,i!ion of pro,iding ea!1 acce!! to it! polic1holder!- LI. ha! launched it! SA)(LLI)( SA&PAR; office!. )he !atellite office! are !maller- leaner and clo!er to the cu!tomer. )he digitaliAed record! of the !atellite office! will facilitate an1where !er,icing and man1 other con,enience! in the future. LI. continue! to #e the dominant life in!urer e,en in the li#eraliAed !cenario of Indian in!urance and i! mo,ing fa!t on a new growth trajector1 !urpa!!ing it! own pa!t record!. LI. ha! i!!ued o,er one crore policie! during the current 1ear. It ha! cro!!ed

the mile!tone of i!!uing 2-E2-43-G77 new policie! #1 27th Oct- 3EE7- po!ting a health1 growth rate of 2<.<=N o,er the corre!ponding period of the pre,iou! 1ear.

LICS DISTRIBUTION STRUCTURE CYOGABSHEMAD

CENTRAL OFFICE MUMBAI

.(0)RAL JO0( 8hopal SO')

SO') (R0 JO0( .hennai

(AS)(R0 JO0( ;olkata $(S)(R0 JO0( &um#ai

0OR) (R0 JO0( 0ew *elhi 0OR) .(0)RAL JO0( ;anpur

.(0)RAL JO0( 1dera#ad

2EE *IVISIO0AL OFFI.(S

NASHIB DI ISION

3E6K 8RA0. OFFI.(S

NASHIB DHULE

NADURBAR ;ALGAON

From then to now- LI. ha! cro!!ed man1 mile!tone! and ha! !et unprecedented performance record! in ,ariou! a!pect! of life in!urance #u!ine!!. )he !ame moti,e! which in!pired our forefather! to #ring in!urance into e"i!tence in thi! countr1 in!pire u! at LI. to take thi! me!!age of protection to light the lamp! of !ecurit1 in a! man1 home! a! po!!i#le and to help the people in pro,iding !ecurit1 to their familie!

CHAPTER # RURAL INSURANCE SIGNIFICANCE AND LIC=S INITIATIVES

)he united nation! declaration of human right! 2G6K pro,ide! that He,er1one ha! a right to a !tandard of li,ing adeBuate for the health and well #eing of him!elf and hi! famil1- including food- clothing- hou!ing- and medical care and nece!!ar1 !ocial !er,ice! and the right to !ecurit1 in the e,ent of unemplo1ment- !ickne!!- di!a#ilit1widow hood- other lack of li,el1 hood in circum!tance! #e1ond hi! controlI $hen the #read winner die!- to that e"tent- the famil15! income die!. (,er1 economicall1 #ackward or rural area ha! the concept of #a!icall1 one or ma"imum two #read winner! in a famil1. )he economic condition of the famil1 i! affected #adl1 unle!! other arrangement! come to #eing to re!tore the !ituation. Life In!urance pro,ide! !uch an alternate arrangement. If thi! did not happen another famil1 would #e pu!hed into the #ackward !trata of !ociet1- increa!ing po,ert1 le,el!. Poor people co!t the nation #1 wa1 of !u#!idie! and dole! and !o on. Poor people al!o co!t the nation #1 wa1 of large growth in population- poor education and ,agarie! in #eha,ior of children. Life In!urance tend! to reduce !uch co!t!. In thi! !en!e- the life in!urance #u!ine!! i! complimentar1 to the !tate! effort in !ocial management In India- !ocial !ecurit1 find! a place in our con!titution. Article 62 reBuire! the !tatewithin the limit! of it economic capacit1 and de,elopment- to make effecti,e pro,i!ion for !ecuring the right to work to education and to pro,ide pu#lic a!!i!tance in ca!e of unemplo1ment- old age- !ickne!! and di!a#lement and in other ca!e! of unde!er,ed want. Part of !tate! o#ligation to the poorer !ection are met through the mechani!m of Life In!urance. A! per the law and the direction! of the regulator1 authoritie!- In!urance companie! in India are o#liged to e"tend in!urance #enefit! to economicall1 weaker !ection! of the !ociet1 in the unorganiAed !ector

LEGAL PRO ISIONS

Vide paragraph 2G of the 2!t !chedule of the In!urance regulator1 and de,elopment authorit1 act- 2GGG- !ection 438 and 43. ha,e #een added to the in!urance act of 2G4K. )he!e !ection! read ac underC 438. insurance business in rural or social sector e,er1 in!urer !hall- after the commencement of the in!urance regulator1 and de,elopment authorit1 act of 2GGGundertake! !uch percentage! of Life In!urance #u!ine!! and general in!urance #u!ine!! in the rural or !ocial !ector a! ma1 #e !pecified in the official GaAette- #1 the authorit1- in thi! #ehalf. 43.. obligation of insurer in respect of rural or unorganized sector and backward classes e,er1 in!urer !hall- after the commencement of the in!urance regulator1 and de,elopment authorit1 act of 2GGG- di!charge the o#ligation! !pecified under !ection 438 to pro,ide Life In!urance or general In!urance policie! to the per!on! re!iding in rural !ector- worker! in the unorganiAed or informal !ector or for economicall1 ,ulnera#le or #ackward cla!!e! of the !ociet1 and other categorie! of per!on! a! ma1 #e !pecified #1 regulation! made #1 the authorit1 and !uch In!urance policie! !hall include In!urance for crop! )he Regulation made #1 IR*A- in term of the!e pro,i!ion!- were notified in the official GaAette on 2G.=.3EEE. )he1 were amended in Octo#er 3EE3 and were notified in the official GaAette on 2<.2E.3EE3. 'nder the!e regulation! )he rural !ector ha! #een defined a! a place in which a! per the late!t cen!e!the population i! le!! than 7EEE- the den!it1 of population i! le!! than 6EE pre !Buare kilometer and more than 37N of the male population are engaged in agricultural pur!uit!. +agricultural pur!uit! are defined a! culti,ationagricultural la#our- work in li,e !tock- fore!tr1- fi!hing- hunting- plantationorchard!- and allied acti,itie! )he !ocial !ector i! defined a! including the unorganiAed !ector- the informal !ector- the economicall1 ,ulnera#le !ector or #ackward cla!!e! and other categorie! of per!on!- in #oth rural and ur#an area!. )he unorganiAed !ector i! defined a! including !elf emplo1ed worker! !uch a! agricultural la#our- #idi worker!- #rick kiln worker!- carpenter!- co##ler!-

con!truction worker!- fi!herman- hamal!- handicraft arti!an!- handloom and khadi worker!- lad1 tailor!- leather and tanner1 worker!- papad maker!- power loom worker!- ph1!icall1 handicapped !elf emplo1ed per!on!- primar1 milk producer!- rick!haw puller!- !afai karmachari!- !alt grower!- !ericulture worker!- !ugarcane cutter!- tendu leaf collector!- todd1 tapper!- ,egeta#le ,ender!- wa!her women- working women in hill! or !uch other categorie! of per!on!. )he informal !ector i! defined a! the !mall !cale- !elf emplo1ed worker! t1picall1 at a low le,el of organiAation and technolog1 with the primar1 o#ject of generating emplo1ment and income with heterogeneou! acti,itie! like retailed trade- tran!port- repair and maintenance- con!truction- per!onal and dome!tic !er,ice!- and manufacturing with the work #eing mo!tl1 la#our inten!i,e- ha,ing of written and informal emplo1er%emplo1ee relation!hip . People #elow the po,ert1 line are included in the e"pre!!ion economicall1 ,ulnera#le or #ackward cla!!e!. )he e"pre!!ion Fother categorie! of per!on!5 include! per!on with di!a#ilit1 a! defined in the Per!on! and *i!a#ilitie!5 +(Bual Opportunitie!Protection of Right! and Full Participation/- act- 2GG7- and who ma1 not #e gainfull1 emplo1ed and al!o include! guardian! who need in!urance to protect !pa!tic per!on! with di!a#ilit1. )he!e !ection! of !ociet1 are normall1 neglected #1 In!urer!. )he1 are difficult to reach and the !cope for in!urance i! limited. 8ut- the1 need In!urance more than the other !egment!. In!urer! who #egin to tran!act Life In!urance #u!ine!! in the 1ear 3EEE or later are reBuired #1 the!e regulation! to write- in the rural !ector At lea!t 7N of total policie! return direct- in the 2!t financial 1ear- going up to GN in the 3nd financial 1ear23N in the 4rd financial 1ear26N in the 6th financial 1ear and 2<N in the 7th financial 1ear.

of total policie! written direct in that 1ear $ith regard to the general in!urance-

3N in the 2!t financial 1ear4N in the 3nd financial 1ear7N there after.

of the total gro!! premium income written direct in that 1ear. $ith regard to the !ocial !ector- the o#ligation! are laid down a! follow! 7EEE li,e! in the 2!t financial 1ear=7EE li,e! in the 3nd financial 1ear2E-EEE li,e! in the 4rd financial 1ear27-EEE li,e! in the 6th financial 1ear and 3E-EEE li,e! in the 7th financial 1ear

It ha! al!o #een pro,ided that in the 2 !t 1ear- if the period of operation i! le!! than 23 month! the o#ligation of li,e! in the !ocial !ector could #e proportionatel1 le!!. It i! al!o pro,ided that the IR*A ma1 normall1 re,i!e the o#ligation! once in Fi,e 1ear!. $ith regard! to e"i!ting in!urer! the regulation! pro,ide that o#ligation! would #e decided #1 the IR*A after con!ultation- #ut the Buantum would not #e le!! than what ha! #een recorded for the 1ear ended 42.4.3EE3. )he in!urer! would de,elop appropriate policie! to compl1 with the o#ligation! under the act. )he e"tent of the compliance will depend on the ,igor with which the agent! will carr1 forward the effort! in the!e !ector!. Report! at the end of the 1ear 3EE2%3EE3 are that all the in!urer! ha,e e"ceeded the limit! laid down #1 the IR*A.

THE RURAL SECTOR

)here are more than 7 lakh ,illage! in India with a total population of nearl1 =7 crore!. )hi! repre!ent! a ,a!t potential. 8ut 0earl1 37N of them are #elow the po,ert1 line compared to onl1 a#out =Nin the ur#an area!. )he1 are !cattered and not contiguou! a! in the ur#an area!. )herefore- to contact people- one ha! to tra,el long

di!tance!- along road! that are not well con!tructed. Onl1 <EN of the ,illage! are connected #1 all weather road!. )he1 ma1 not #e con,enient place! for ,i!itor! to !ta1 or to eat food. In!urance agent! ma1 find it more profita#le to !pend their time and effort! in the ur#an area! that i! wh1 there would #e tendencie! to a,oid the rural market unle!! compelled #1 the law or the IR*A through regulation!. Apart from the large num#er! in the rural area!- there are al!o indicator! that !how increa!e in pro!perit1 in the rural area!. 0earl1 2.7 crore! hou!ehold! in the rural area! are con!idered to ha,e an annual income of R!.7E-EEE or a#o,e. &ore than 47EE #ranche! of commercial #ank! operate in rural area!- apart form the #ank! e"clu!i,el1 concerned with agricultural de,elopment. )he con!umption of ,ariou! con!umer item! like chocolate!- #i!cuit!- !oap!- detergent!- wa!hing powder- toothpa!temotorc1cle!- )V !et!- radio!- pre!!ure cooker! etc. are more in the rural area! than in the ur#an area!. )he F&.G producer! find that the rural market! will #e the main area! for growth in future )he LI.5! #u!ine!! for the rural area! ha! #een increa!ing !teadil1. In 2GG=%2GGK- the #u!ine!! wa! more than 73N in the num#er of policie! and more than 63N in !um a!!ured. In the la!t financial 1ear of 3EE4%3EE6- 77N of LI.5! #u!ine!! wa! form the rural area!. )hi! i! apart form the #u!ine!! co,ered under the group !cheme! in the !ocial !ector. )he awarene!! a#out the life in!urance i! not a! low a! it u!ed to #e !ome 4E 1ear! ago. )he LI. ha! #een doing inten!i,e pu#licit1 through the mo#ile ,an! and other traditional a! well a! non traditional media. )he radio and tele,i!ion #roadca!t! reach almo!t e,er1 ,illage through communit1 !et! *e!pite the long di!tance! and the incon,enient infra!tructure for tra,el and !ta1ingthe effort ma1 #e rewarding. )he rural folk are !imple people #ut not ignorant of worldl1 matter. If a In!urance compan1 can win the tru!t of the!e people !elling in!urance to them would #e an ea!1 propo!ition.

SOCIAL SECTOR

A! mentioned a#o,e there are certain o#ligation! of the in!urer! toward! the !ocial !ector. )he #enefit! of life In!urance are needed mo!t #1 people in thi! !ector- a! the1 are relati,el1 poor and ha,e ,er1 little !a,ing!- if at all. An1 lo!! of income through earl1 death would make the !ur,i,ing famil1 poorer than #efore. )he condition would #e wor!t if the decea!ed had not repaid loan!- taken for the purpo!e of hi! work! or per!onal reBuirement. Soon after nationaliAation of Life In!urance- thi! need wa! recogniAed and effort! were made to introduce what wa! called Fma!!5 in!urance!. )he concept wa! to co,er ,er1 large num#er! of poor people in one !cheme. )he difference #etween !uch plan! under the !ocial !ector and group in!urance policie! i! that the former are not policie! taken ,oluntaril1 #1 an1 emplo1er or organiAation or a!!ociation- #ut are part of the !cheme! of the go,ernment #eing implemented through the #u!ine!! of life in!urance. )ill earl1 3EEE there were !ocial !ecurit1 group in!urance !cheme! +SSGIS/ !eparatel1 for recogniAed operation!. 36 occupation! had #een pro,ed and a! at the end of 2GGG- the!e !cheme! co,ered at lea!t 7E lakh! per!on! for a total !um a!!ured of nearl1 R!. 2=7E crore!. )ho! a,eraged out to nearl1 R!.47EE per head. In fact- the !um a!!ured differ form !cheme to !cheme. )he #enefit of death #1 accident wa! R!.37-EEE. )he premium for co,er wa! paid #1 the !tate or from the !ocial !ecurit1 fund !etup #1 LI. in 2GKK%KG- for thi! purpo!e. )here wa! al!o the Rural Group Life In!urance Scheme +RGLIS/- where under per!on! aged #etween 3E and 7E 1ear! are co,ered for !um! of R!.7EEE- pa1a#le on death #efore the age of <E. )he !cheme wa! admini!tered through elected Pancha1at!. A new !cheme wa! launched in :ul1 3EEE- called F)he :ana!hree 8ima 9ojana5. It wa! meant to co,er all the rural and ur#an poor who are aged #etween 2K and <E 1ear! and are the #read winner! of the famil1. )hi! wa! a major initiati,e taken up #1 LI. in thi! !ector. )he people to #e co,ered are recommended #1 a nodal agenc1which i! a !tatutor1 #od1 or ,oluntar1 organiAation recogniAed for thi! purpo!e. It act! a! the !ole point of contact for the in!urance compan1- gi,ing data a#out it! mem#er!collecting premia and making the claim! a! and where the1 ari!e. )he !um a!!ured under thi! !cheme i! R!. 3EEEE+R!. 7EEEE in the ca!e of death #1 accident/. )he

minimum num#er in the group ha! to #e of 37 people. Further detail! will #e gi,en in the following chapter!. Another !uch initiati,e wa! the Integrated Rural *e,elopment Program taken up #1 LI. and co,ered #1 the Swarna :a1anti Gram!warojgar 9ojana. A !eparate fund ha! #een !etup #1 Go,ernment of India for funding thi! !cheme. )he !cheme i! admini!tered through di!trict rural de,elopment agenc1- coming under the Jilla Pari!had. All the people #etween age of 2K and <E 1ear! and recei,ing !u#!id1financial a!!i!tance- loan under IR*P after 2.6.2GGK- are eligi#le to join the !cheme. )he premium i! full1 #orne #1 the Go,ernment of India. In!urance co,er i! pro,ided for a period of 7 1ear! from the date of di!#ur!ement of !u#!id1- financial a!!i!tanceand loan under IR*P. I n the e,ent of death #efore age of <E 1ear!- a !um a!!ured of R!. 7EEE #ecome! pa1a#le to nominee. In ca!e of death due to accident- an amount of R!. 2EEEE i! pa1a#le. LI. ha! introduced )he Landle!! Agricultural La#ourer! Group In!urance Scheme +LALGI/ on #ehalf of the Go,ernment. It pro,ide! term in!urance protection to the e"tent of R!. 3EEE each to familie! of landle!! agricultural la#ourer!- who do not own land and do not ha,e an1 inherita#le right! to agricultural land. )he entire co!t of in!urance i.e. the premium #orne #1 the go,ernment. )he ;ri!hi Shramik Samajik Surak!ha 9ojana- introduced in 3EE2- pro,ide! periodical lump !um !ur,i,al #enefit! and pen!ion to agricultural worker!. )he mem#er ha! to pa1 R!. GE at the #eginning of e,er1 Buarter and dou#le the amount i! contri#uted from the !ocial !ecurit1 fund. Agricultural worker! #etween 2K and 7E 1ear! of age are co,ered. On death #efore age of <E 1ear!- S. A. of R!. 3EEEE- along with accumulated amount with intere!t- i! pa1a#le to the nominee. In ca!e of death #1 accident- the in!urance co,er i! of R!. 7EEEE. P*8 #enefit! are pro,ided. On the life a!!ured !ur,i,ing <E 1ear!- if the period of contri#ution i! 2E 1ear! or more- a lump !um will #e paid- depending on hi! contri#ution. A minimum pen!ion of R!. 2EE per month will #e paid during hi! life time. )he Shik!ha Saha1og 9ojana- al!o introduced in 3EE2- i! de!igned to pro,ide- at no additional co!t- an educational allowance of R!. 4EE per Buarter to !tudent! !tud1ing

in cla!!e! Gth to 23th- who!e parent! are #elow the po,ert1 line and are mem#er! of the :ana!hree 8ima 9ojana. )he pa1ment will #e made out of !ocial !ecurit1 fund of the go,ernment through the educational in!titution! concerned. Apart form LI. there are not man1 companie! who ha,e taken into con!ideration the concept of rural in!urance and !ocial !ecurit1 a! !eriou!l1 a! it !hould #e. )he Po!t office in!urance !cheme ha! not worked well for the go,ernment. Other companie! ha,e introduced !cheme! for the rural poor and for the purpo!e of !ocial !ecurit1 ju!t a! an o#ligation.

CHAPTER C POLICIES INTRODUCED BY LIC FOR RURAL BENEFIT

;ANASHREE BIMA YO;ANA

It i! difficult to !mile when 1ou are !truggling to make end! meet. (,en more !owhen the future of 1our famil1 i! grim and uncertain e,er. )hat5! wh1 Janashree Bima Yojana for LI. i! rea!on enough to light up million face!. ELIGIBILITY 2. Per!on! #etween age 2K 1r! and <E 1r! 3. In addition to per!on! #elow the po,ert1 line. (,en per!on! marginall1 a#o,e the po,ert1 line will #e allowed. 4. )he group! will #e identified and notified #1 LI. in con!ultation with the 0odal Agenc1. 6. &inimum mem#er! !hould #e 37. BENEFITS a/ In the e,ent of death of the mem#er- !um A!!ured of R!. 3E-EEE will #ecome pa1a#le to the nominee. #/ Accident 8enefitC In the e,ent of death #1 accident or partial L )otal Permanent *i!a#ilit1 due to accident the following #enefit! !hall #e pa1a#le. i. ii. iii. On death due to accident C R!.7E-EEE L% Permanent )otal di!a#ilit1 due to accident R!. 7E-EEE L% Lo!! of two e1e! or two lim#! in a accident C R!. 7E-EEE L%

i,.

Lo!! of one e1e or one lim# in a accident R!. 37- EEE L%

PREMIUM a/ Initiall1 R!. 3EE L% per mem#er per annum to #e !hared a! under. % % 7E N of the premium to #e paid #1 mem#er! L 0odal Agenc1 L State Go,ernment. )he 8alance 7EN of the premium will #e #orne #1 Social Securit1 Fund #/ ("perience Rating Adju!tment will #e allowed after 4 1ear! on the #a!i! of claim e"perience- if the group i! of minimum 3EEE mem#er!. If the claim e"perience i! ad,er!e- LI. ma1 re,i!e the premium rate!. NODAL AGENCIES 0odal Agenc1 !hall mean Pancha1at!- 0GO5!- Self In!titutionaliAed arrangement. )he 0odal Agenc1 will act for and on #ehalf of the in!ured mem#er! in all matter! relating to the Scheme elp Group! or an1 other

CLAIM PROCEDURE. .laim procedure i! !imple. )he #eneficiar1 of the decea!ed mem#er will #e reBuired to furni!h the original death certificate to the 0odal Agenc1 who will arrange to forward the !ame along with the claim form to the LI. i.e. the #ranch that i! !er,ing the !cheme. LI. will !ettle claim! #1 !ending AL. Pa1ee cheBue! directl1 to the #eneficiarie!. Inca!e of death #1 accident Police inBue!t report- po!t mortem report will al!o #e reBuired to #e !u#mitted.

)he e"i!ting !cheme at the time of renewal will ha,e option to !witch o,er to new !cheme on re,i!ed term! and re,i!ed #enefit!. )he !cheme will #e admini!tered through Pen!ion and Group Scheme! *ept. of LI. of India. )he !ettlement of *eath .laim! would #e !u#ject to 0odal agenc1 !u#mitting to the corporation claim%cum%di!charge form and cop1 of the death Regi!tration certificate in re!pect of the decea!ed mem#er

I&@%6@.8.&' %+ NGO, 0& 0&'(%1-*0&? Janashree Bima Yojana

)hi! further to our circular 0o. <KK dated 33.23.2GGG wherein- the Agent! were allowed to can,a!! Social Securit1 Group In!urance Scheme! ha,ing mem#er!hip up to 2EEE !u#ject to the condition! applica#le to Agenc1 allotment. )he rate! of commi!!ion pa1a#le under .on,entional Group Scheme! were made applica#le to SSGS. It ha! #een decided to e"tend the a#o,e !cheme! to agent! for can,a!!ing :ana!hree 8ima 9ojana on the !ame term! and condition!. For !ucce!!ful implementation of :ana!hree 8ima 9ojana- the in,ol,ement of 0GO! i! felt nece!!ar1. )he1- howe,er- ha,e to incur e"pen!e! incurred #1 them. $e ha,e e"amined the matter and it ha! #een decided to allow reim#ur!ement of e"pen!e! incurred #1 them in introducing the !cheme a! under.

ELIGIBILITY A/ 0GO5! will #e eligi#le for reim#ur!ement of the e"pen!e! #1 them for introducing :ana!hree 8ima 9ojana onl1 after the !cheme ha! #een finaliAed P the total premium recei,ed. 8/ )he minimum group !iAe i! 37E ./ )he propo!al under :ana!hree 8ima 9ojana !hould #e !u#mitted directl1 to PPGS unit and not through agent.

MODEL RULES FOR ;ANASHREE BIMA YO;ANA SUBSIDISED FROM THE SOCIAL SECURITY FUND
1E DEFINATIONS/ In the!e rule!- the following word! and e"pre!!ion! !hall- unle!! repugnant to the conte"t- ha,e the following meaning!C% i/ H)he SchemeI !hall mean the :ana!hree 8ima 9ojana. ii/ H0odal Agenc1I !hall mean the QQQQQQQQQQQQQQQQQQQQQQQQQQ in the !tateL'.). of India for the time #eing appointed to admini!ter the !cheme. iii/ H)he .orporationI !hall mean the Life In!urance .orporation of India e!ta#li!hed under Section 4 of the Life In!urance .orporation Act- 2G7<. i,/ H)he &em#erI !hall mean mem#er of the Societ1LA!!ociationLQQQQQQQQ 'nionL QQQQQQ who !ati!fie! the eligi#ilit1 condition and who ha! #een admitted to the mem#er!hip of the !cheme. ,/ H)he In!ured &em#erI !hall mean the particular mem#er who ha! #een admitted to the mem#er!hip of the !cheme and on who!e life an A!!urance ha! #een or i! to #e effected in accordance with the rule!. ,i/ H)he Rule!I !hall mean the rule! of the !cheme a! !et out #elow and a! amended from time to time. ,ii/ H(ffecti,e *ateI !hall mean the 2!t da1 of QQQQQQQQQQ- the date from which the !cheme commence!. ,iii/ H(ntr1 *ateI !hall mean +a/ in relation to original mem#er! the (ffecti,e date and +#/ in relation to new mem#er! to #e admitted to the !cheme after

the effecti,e date- the date on which the1 ha,e #een admitted a! mem#er! of the !cheme and entered in the Regi!ter of In!ured &em#er!. i"/ HAnnual Renewal *ateI !hall mean in relation to the !cheme the 2 !t da1 of QQQQQQQQQQ and the 2!t da1 of QQQQQQQQQQ in each !u#!eBuent 1ear. "/ H)erminal *ateI !hall mean in re!pect of each In!ured &em#er the date on which he complete! the age of <E 1ear!. "i/ H)he A!!uranceI !hall mean the particular A!!urance to #e effected on the life of the mem#er. "ii/ H)he 8eneficiar1I !hall mean the per!on or per!on! who ha!Lha,e #een appointed #1 the In!ured &em#er a! 8eneficiar1L#eneficiarie! and who!e name or name! ha,e #een entered in the Regi!ter of In!ured &em#er! kept #1 the 0odal Agenc1. 3/ 0odal Agenc1 will act for and on #ehalf of the In!ured &em#er! in all matter! relating to the !cheme and e,er1 act done #1 agreement made with and notice gi,en to the .orporation #1 the 0odal Agenc1 !hall #e #inding on the mem#er!. 4/ 0odal Agenc1 to furni!h particular! )he 0odal Agenc1 !hall furni!h to the .orporation all the rele,ant particular! of mem#er! a! are reBuired in connection with the admini!tration of the !cheme- !uch a! particular! on 0ew &em#er!*eath of in!ured mem#er! and other particular! of ,erification of eligi#ilit1 condition!. )he 0odal Agenc1 !hall furni!h to the .orporation all the rele,ant particular! a! ma1 #e called for #1 the .orporation.

4E ELIGIBILITY/ a/ All &ale and Female mem#er! who areC 2/ Aged not le!! than 2K 1ear! and not more than <E 1ear!@

3/ (ngaged a! QQQQQQQQL in the occupation of QQQQQQQQ@ 4/ &em#er! of QQQQQQQQQQQQ Societ1 L 'nion 6/ 8elow the po,ert1 line or marginall1 a#o,e po,ert1 line- and 7/ An1 other Bualif1ing condition +to #e !pecified/- !hall #e eligi#le to join the !cheme. Pre!ent mem#er! who on the effecti,e date !ati!f1 the a#o,e eligi#ilit1 condition! !hall join the !cheme! a! from that date. Pre!ent mem#er! who are not within the a#o,e categor1 on the effecti,e date and future mem#er! !hall join the !cheme on the date on which the1 !ati!f1 the a#o,e eligi#ilit1 condition!. #/ 0o In!ured mem#er! !hall withdraw from the !cheme while he i! !till an eligi#le mem#er !ati!f1ing the condition! of eligi#ilit1 de!cri#ed a#o,e. c/ An In!ured &em#er !hall participate in the #enefit! of the !cheme a! long a! he i! eligi#le. e !hall cea!e to #e an In!ured &em#er a! from the date on which he cea!e! to fulfill the eligi#ilit1 condition!. d/ &inimum mem#er!hip !hould #e 37.

5E ADMISSION OF AGE/ )he 0odal Agenc1 !hall en!ure that e,idence of age !ati!factor1 to the .orporation i! furni!hed #1 e,er1 mem#er at the time of hi! joining the !cheme. 6E ADMISSION OF MEMBER/ For the purpo!e of admi!!ion into the !cheme- a mem#er !hall make an application in the pre!cri#ed form +Anne"ure III/. )he application form dul1 completed #1 the mem#er and the nodal agenc1 along with two copie! of the

regi!ter of mem#er! in the pre!cri#ed form !hall #e maintained #1 the nodal agenc1 +Anne"ure IV/. If the declaration of health made #1 the mem#er and other particular! in the application form are found to #e !ati!factor1- the nodal agenc1 !hall admit him into the !cheme. )he deci!ion of the nodal agenc1 in thi! regard !hall #e final. )he nodal agenc1 !hall maintain the cop1 of the Regi!ter of &em#er! co,ered under the !cheme and !u#mit one cop1 thereof to the .orporation. 7E ASSURANCE/ An a!!urance !hall #e effected in the life of each In!ured &em#er under One 1ear Renewa#le Group )erm A!!urance Plan for a !um a!!ured of R!. 3E-EEEL%. Su#ject to the pro,i!ion! of the!e rule!- the A!!urance !hall #e renewed on each Annual Renewal *ate. )he A!!urance held #1 the 0odal agenc1 'PO0 )R'S) for the #enefit of the per!on! entitled to in accordance with the!e rule!. 7E ANNUAL PREMIUM AND CONTRIBUTION/ )he annual Premium pa1a#le for !ecuring a!!urance! in para +=/ !hall #e at the rate of R!. 2EL% +Rupee! )en/ per thou!and Sum a!!ured per mem#er. Out of the annual Premium of R!. 3EEL% mentioned a#o,e for e,er1 mem#ereach mem#erL!ociet1LA!!ociationL'nionLState Go,t. !hall contri#ute 7EN of the premium i.e. a !um of R!. 2EEL%- unle!! re,i!ed. )hi! contri#ution !hall #e pa1a#le on the entr1 date and each !u#!eBuent Annual Renewal *ate. )he #alance of 7EN of the premium per mem#er pa1a#le on the entr1 date and each !u#!eBuent Annual Renewal *ate !hall #e adju!ted out of the Social Securit1 Fund !et up #1 the .orporation. )he .ondition! of a!!urance and rate! of premium ma1 #e re,i!ed upward or downward #1 the corporation #a!ed on claim e"perience on Annual Renewal *ate !u#ject to 4 month!5 notice #eing gi,en to the nodal agenc1.

)he nodal agenc1 !hall arrange to remit the amount of mem#er!5 !hare of premium +i.e. 7EN of the total premium/ to the de!ignated office of the .orporation- a! ma1 #e intimated. :E BENEFITS ON DEATH PRIOR TO TERMINAL DATE/ 'pon the death of an In!ured &em#er whil!t he i! in!ured prior to )erminal date- the !um A!!ured of R!. 3E-EEEL% !hall #ecome pa1a#le to the nodal agenc1 for the #enefit! of the #eneficiar1 of the In!ured &em#er. In ca!e of death or partialLtotal permanent di!a#ilit1 due to accident +a! herein after defined/ the following #enefit! !hall #ecome pa1a#le. On death Permanent total di!a#ilit1 Lo!! of 3 e1e! or 3 lim#! OR 2 e1e and 2 lim# Lo!! of 2 e1e or 2 lim# R!. 7E-EEE R!. 37-EEE R!. 7E-EEE R!. 7E-EEE

H*eathLPartialL)otal permanent di!a#ilit1 due to accidentI !hall mean the deathLdi!a#ilit1 occurring within three calendar month! of the happening of #odil1 injur1- re!ulting !olel1 and directl1 from accident cau!ed #1 ,iolente"ternal and ,i!i#le mean! independentl1 of an1 other cau!e- #ut not the deathLdi!a#ilit1 #1 the followingC 2/ .au!ed #1 intentional !elf injur1- !uicide or attempted !uicide- in!anit1 or immoralit1 or whil!t the &em#er i! under the influence of into"icating liBuor- drug or narcotic. 3/ .au!ed #1 injurie! re!ulting from riot!- ci,il commotionre#ellion- war +whether war #e declared or not/- in,a!ion- huntingmountaineering- !teeple%cha!ing or racing of an1 kind@ or

4/

Re!ulting from mem#er committing an1 #reach of the law.

1FE TERMINATION OF ASSURANCE/ )he A!!urance on the life of an In!ured &em#er !hall immediatel1 terminate upon the happening of an1 of the following e,ent! and no #enefit will #ecome pa1a#le there undera/ *i!continuance of contri#ution! relating to the a!!urance or #/ )he in!ured mem#er reaching the )erminal *ate- or c/ )he In!ured &em#er cea!ing to !ati!f1 one or more of the eligi#ilit1 condition!- or d/ )he In!ured &em#er cea!ing to #e a mem#er of the QQQQQQQQ Societ1LA!!ociationL'nion QQQQQQQQQQ- or e/ )he In!ured &em#er failing to pa1 hi! !hare of contri#ution.

11E RESTRAINT ON ASSIGNMENT/ )he #enefit! a!!ured under the !cheme are !trictl1 per!onal and cannot #e a!!igned- charged or alienated in an1 wa1. 12E DISCONTINUANCE OF THE SCHEME/ )he nodal agenc1 re!er,e! the right to di!continue the !cheme at an1 time or an1 Annual Renewal *ate- !u#ject to 4 month!5 notice #eing gi,en to the .orporation. )he .orporation al!o re!er,e! a !imilar right to di!continue the !cheme gi,en 4 month!5 notice.

13E ;URISDICTION/ All A!!urance! i!!ued under the !cheme !hall #e Indian contract!. )he1 will #e !u#ject to Indian Law! including the Indian In!urance Act- 2G4K a! amended- )he Lifer In!urance .orporation Act 2G7<- the Income%ta" Act2G<2 and to an1 legi!lation !u#!eBuentl1 introduced. All #enefit! under the !cheme ari!ing out of death of an1 In!ured &em#er !hall #e pa1a#le in Indian Rupee!. 14E MASTER POLICY/ )he nodal agenc1 will #e reBuired to complete a &a!ter Propo!al Form. )he .orporation will i!!ue a Single &a!ter Polic1 incorporating all the a!!urance! affected under the Scheme. 15E APPOINTMENT OF BENEFICIARY/ (,er1 In!ured &em#er !hall appoint- in the pre!cri#ed form one or more from among the !pou!e or childLchildren or dependent! to #e the 8eneficiar1 or 8eneficiarie!. In the e,ent of death of the In!ured &em#er whil!t #eing co,ered under the !cheme- the #enefit! under the A!!urance on hi! life will #e paid to the nodal agenc1 for the #enefit of the #eneficiar1 or #eneficiarie! appointed #1 the In!ured &em#er. If the In!ured &em#er doe! not ha,e a !pou!e or childLchildren or dependent!- then he !hall appoint hi! legal repre!entati,e to #e the #eneficiar1.

BRISHI SHRAMIB SAMA;IB SURABSHA YO;ANA 2FF1

)he !alient feature! of the !cheme are a! underC OB;ECT/

T2. %=G.*' %+ '20, ,*2.8. 0, '% 9(%@01. 60+. 0&,-()&*. 9(%'.*'0%&H 9.(0%10*)6 6-89 ,-8 ,-(@0@)6 =.&.+0' )&1 9.&,0%& '% '2. )?(0*-6'-()6 A%(>.(,
ELIGIBILITY/ a/ Per!on! #etween age 2K 1ear! and 7E 1ear!. #/ Per!on! following one or more of the following agricultural occupation! in the capacit1 of a la#ourer on hire- whether paid in ca!h or kind or partl1 in ca!h and partl1 in kind a/ farming #/ dair1 farming c/ productionculti,ation- growing and har,e!ting of an1 horticulture commodit1 d/ rai!ing of li,e!tock- #ee%keeping or poultr1 farming and e/ an1 practice performed on a farm a! incidental to or in conjunction with the farm operation. c/ &inimum mem#er!hip !hould #e 3E.

BENEFITS/ +while the mem#er!hip i! in force/ AE D.)'2 On death #efore age <E a/ Pa1ment of !um a!!ured of R!. 3E-EEEL% along with return of accumulated amount with intere!t to the nominee. #/ Pa1ment of an additional !um a!!ured of R!. 4E-EEEL% in ca!e of death due to accident- along with return of accumulated amount with intere!t to the nominee. BE D0,)=060'4 On di!a#ilit1 due to accident #efore age <E

a/ In ca!e of total permanent di!a#ilit1 i.e. lo!! of two e1e! or two lim#! of u!e or one e1e and one lim# of u!e- R!. 7E-EEEL% #/ In ca!e of partial permanent di!a#ilit1 i.e. lo!! of one e1e or one lim# of u!e R!. 37-EEEL% CE S-(@0@)6 B.&.+0', / Lump Sum Sur,i,al #enefit! will #e pro,ided at the end of e,er1 2E th 1ear after entr1 into the !cheme till the mem#er attain! <E 1ear! of age. )he Lump !um amount will depend upon the accumulation in hi!Lher account. Further- lump !um #enefit will #e paid onl1 if the mem#er!hip i! in force. DE P.&,0%&/ Pen!ion will #e paid to the mem#er on reaching age <E. )he amount of pen!ion will depend upon the accumulated #alance in hi! account and the annuit1 rate! at that time. Further- if mem#er ha! paid for a minimum period of 2E 1ear!- then at lea!t R!. 2EEL% per month pen!ion will #e pa1a#le. PREMIUM/ )he mem#er will pa1 R!. 4<7L% per annum- pa1a#le Buarterl1Lhalf 1earl1L1earl1. *ou#le the amount will #e contri#uted from the Social Securit1 Fund

NODAL AGENCY/ Gram Pancha1at with #e the nodal agenc1- who with the help of 0GOLS G or an1 other agenc1 will identif1 the agricultural worker!- organiAe them into group! of minimum 3E and !u#mit the propo!al! to LI. . #ITHDRA#AL BEFORE 6F YEARS/

In ca!e of withdrawal of mem#er #efore reaching age <E due to non%pa1ment of premium- onl1 accumulated amount of hi! own contri#ution! ie.- at the rate of R!.3<7L% per annum with intere!t !hall #e paid to the mem#erLnominee in the e,ent of !ur,i,alLdeath. )he mem#er!hip can #e rein!tated #1 pa1ment of arrear! of premium with intere!t thereon. CLAIM PROCEDURE/ )E O& S-(@0@)6 )he #eneficiar1 will ha,e to !u#mit the claim form- through the 0odal Agenc1- to a,ail of the !ur,i,al #enefit!.

=E O& 1.)'2 )he nominee of the decea!ed mem#er will #e reBuired to furni!h the original *eath .ertificate to the 0odal Agenc1 who will forward it to LI.- PPGS 'nit along with the other claim paper!. In ca!e of accidental claim- FIR- Police InBuir1 Report will al!o #e reBuired to #e !u#mitted. LI. will !ettle the claim #1 !ending AL. Pa1ee cheBue directl1 to the #eneficiar1.

BUNBAR BIMA YO;NA FOR HANDLOOM #EA ERS

An arrangement ha! #een made with *e,elopment .ommi!!ioner + andloom!/- 0ew *elhi for implementation of In!urance !cheme for !cheme areC andloom $ea,er!. )he !cheme would #e implemented all o,er India from all PPGS 'nit!. )he !alient feature! of the

2. )he !cheme would #e com#ination of :ana!hree 8ima 9ojana and ordinar1 Group In!urance Scheme. )he unit! !hould #e i!!ue !eparate &a!ter Policie! for i/ ii/ :ana!hree 8ima 9ojana and Ordinar1 Group In!urance.

3. )he co,er under Ordinar1 Group In!urance Scheme i! R!. 4E-EEEL% for natural a! well a! accidental death. In other word! addition #enefit i! not pa1a#le in ca!e of death! due to accident 4. )he premium of R!. 2EEL% under :ana!hree 8ima 9ojana will #e contri#uted a! follow!C R!. 6E L% #1 the mem#er! R!. <E L% #1 *e,elopment .ommi!!ioner + andloom!/- 0ew *elhi. 6. For Ordinar1 Group In!urance Scheme we would #e changing Premium of R!. 2KE L% per mem#er per annum +for co,er of R!. 4E-EEE L%/. )he !et premium would #e contri#uted eBuall1 #1 mem#er a! well a! *e,elopment .ommi!!ioner + andloom!/- 0ew *elhi. 7. &em#er! are gi,en an option of choo!ing either of the !cheme or #oth. <. )he office State *irector%in%.harge of the !cheme. =. &ater policie! will #e i!!ued to the 0odal Agencie!. K. A! the!e !cheme! are All India Scheme! for e,er1 &a!ter Polic1 there i! no need to look for the !tipulation regarding minimum mem#er!hip. G. )he life co,er would !tart from the date of receipt of mem#er!5 !hare. Office of *e,elopment .ommi!!ioner+ andloomE ha! paid an amount of R!. 27E lakh! L% on 42!t march- 3EE6 toward! their !hare of premium ,iA. R! <E under andloom! and )e"tile! and it! !u#%

ordinate office! in the field !hall #e the 0odal Agencie! for implementation of

:ana!hree 8ima 9ojana and R!. GE L% under Group In!urance. )hi! amount i! l1ing in #ook! of .entral Office a! depo!it! and will #e adju!ted toward! premium on the #a!i! of information recei,ed from 'nit! in thi! regard! on &onthl1 #a!i!. 2E. *e,elopment .ommi!!ioner+ andloom!/ ha! propo!ed to co,er eight lakh! handloom wea,er! during the tenth plan 22. If the mem#er!hip for !ome of the policie! i! ,er1 le!! the !ame #e taken up with State *irector%in%.harge of handloom! and te"tile! and it! !u#ordinate5! officer! in the field at the renewal !tage and if po!!i#le the ma!ter5! policie! !hould #e merged at the time of renewal. )he change! are gi,en #elow for read1 reference. F%( ;)&),2(.. B08) Y%G)&)/ *efinition!C K. annual premium and contri#ution R Para +II/ to #e changed a! under. Out of the annual premium of R!. 3EE L% mentioned a#o,e for e,er1 mem#er 7EN of the premium i.e. a !um of R!. 2EE L% unle!! re,i!ed- will #e contri#uted a! follow!C R!. 6E L% will #e paid #1 each mem#er R!. <E L% will #e paid #1 *e,elopment .ommi!!ioner + andloom/ )hi! contri#ution !hall #e pa1a#le on the entr1 date and each !u#!eBuent annual renewal date. F%( G(%-9 I&,-()&*. S*2.8./ Section II +</ .ontri#ution! R to #e changed a! under. )he nodal agenc1 !hall pa1 to the .orporation an amount of R!. GE L%+Rupee! 0inet1/ in re!pect of each mem#er on the entr1 date and the rele,ant annual renewal date. )he

#alance R!. GEL% +Rupee! 0inet1/ !hall #e paid #1 the *e,elopment .ommi!!ioner + andloom/ i.e. i! a !um of R!. 2KE L% unle!! re,i!ed

GROUP INSURANCE SCHEME FOR AANGAN#ADI #ORBERS AND HELPERS

)he Group In!urance !cheme for Aanganwadi $orker! and elper! ha! #een uman

finaliAed with the *epartment of $omen and .hild $elfare- &ini!tr1 of PPGS unit! from 2!t April- 3EE6. It i! called the CAANGAN#ADI BARYABARTRI BIMA YA;ANAD.

Re!ource *e,elopment. )he !cheme i! implemented all o,er India- from all the

OB;ECTI ES )he o#jecti,e of the !cheme i! to pro,ide life in!urance protection along with certain female critical illne!! #enefit! to Aanganwadi $orker! and helper! aged #etween 2K to 7G 1ear! up their attaining age <E through a one 1ear renewa#le group term a!!urance !cheme. ELIGIBILITY All the identified Aanganwadi $orker! and can join the !cheme. NODAL AGENCY " MASTER POLICY HOLDER (ach State Go,ernment L union )erritor1 Admini!tration will identif1 and nominate the appropriate nodal Agenc1 to act for and on #ehalf of the in!ured mem#er! in all matter! relating to the !cheme. )he normal dutie! and re!pon!i#ilitie! of the 0odal Agenc1 are a! underC a/ (nrollment of the mem#er! #1 collecting Application cum 0omination form from eligi#le per!on!. #/ Su#mi!!ion of the !ame to the neare!t PPGS unit of LI. of India along with a li!t of mem#er! and &em#er!5 contri#ution. c/ A!!i!ting the claimant in getting the #enefit! from LI. #1 forwarding to LI. the claim reBuirement!. SCHEME CONTENT )he !cheme i! renewa#le e,er1 1ear. )he #enefit i! a,aila#le onl1 on death L di!a#ilit1 L affliction #1 certain critical illne!!e! de!cri#ed #elowC )he two component! of a#o,e !cheme are a! underC a/ Pre!ent :ana!hree 8ima 9ojana of LI. of India. #/ .ertain #enefit! of Female .ritical Illne!!. PREMIUM elper! in the a#o,e age group

)he total annual premium under the a#o,e !cheme i! R!. 3KE L% pre mem#er i.e. R!. 3EE L% for :89 and R!. KE L% +for pro,iding critical illne!! #enefit/ R!. 2KE L% per annum i! to #e contri#uted #1 the mem#er L Go,ernment a! gi,en #elowC i. ii. R!. 2EE L% #1 the Go,ernment of India- and R!. KE L% #1 the in!ured Aanganwadi $orker L elper.

8alance R!. 2EE L% will #e #orne #1 the Social Securit1 Fund.

BENEFITS UNDER ;BY *eath +other than #1 accident/ R!. 3E-EEE L%. *eath or )otal Permanent *i!a#ilit1 due to accident R!. 7E-EEE L%. Permanent partial *i!a#ilit1 due to accident R!. 37-EEE L%.

FEMALE CRITICAL ILLNESS IFCIE BENEFITS An amount of R!. 3E-EEE L% i! pa1a#le on the diagno!i! of in,a!i,e cancer! +malignant tumor!/ manife!t in the following organ! +!u#ject to proof of affliction !ati!factor1 to LI./. i. ii. iii. i,. ,. ,i. 8re!t .er,i" 'teri .orpu! 'teri O,arie! Fallopian tu#e! Vagina L Vul,a

A malignant tumor characteriAed #1 the uncontrolled growth and !pread of malignant cell! and the in,a!ion of ti!!ue that originate! in one of the a#o,e anatomical !ite! i! co,ered. owe,er following are e"cludedC i. All tumor! that are de!cri#ed hi!toricall1 a! pre R malignant.

ii. iii.

All tumor! that are de!cri#ed hi!toricall1 a! .arcinoma in .itu. *1!pha!ia of the .er,i" +.I0 I- .I0 II- .I0 III/.

SUR I AL PERIOD )o claim the a#o,e mentioned #enefit! the life a!!ured !hould #e ali,e for a minimum period of two month! from the date of fir!t diagno!i! of the critical illne!!. SHIBSHA SAHAYOG YO;ANA A free add on !cholar !hip #enefit i! a,aila#le for the children of the mem#er! who are co,ered under the !cheme a! on the 42 !t ma1 of the immediatel1 following academic 1ear. OTHER OPERATIONAL MODALITIES An Aanganwadi helper L worker who de!ire! to join the !cheme !hall #e reBuired to fill up an application cum nomination form and !u#mit the !ame to the nodal agenc1. )he nodal agenc1 mu!t en!ure that the mem#er i! not alread1 co,ered under an1 other :89 related !cheme. On receipt of the premium amount- the li!t of mem#er! co,ered along with the &a!ter Propo!al form from the nodal agenc1- LI. !hall i!!ue to the nodal agenc1 a &a!ter Polic1. &a!ter Polic1 will #e i!!ued in fa,our of the identified nodal agenc1 onl1 after Go,ernment5! !hare of premium i! recei,ed. In ca!e of death L di!a#ilit1 L affliction #1 an1 of the .ritical illne!!e! de!cri#ed- the nominee L #eneficiar1 !hall !u#mit the pre!cri#ed claim form through the nodal agenc1. )he nodal agenc1 !hall forward the claim to the PPGS unit within 27 da1! of the date of receipt of the claim. )he claim !hould #e !ettled promptl1- if the claim form! with the allied report! if an1 are found in proper order. )he claim amount !hould #e !ent #1 a cheBue drawn in fa,our of the nominee L mem#er to the &a!ter Polic1 holder for onward tran!mi!!ion to the nominee.

CLAIM REJUIREMENTS For :89 R )he reBuirement! for natural death! and accidental death! or di!a#ilit1 #enefit! are a! per :89 rule!. For .ritical Illne!!C A report from the appropriate medical practitioner and diagno!tic report! !uch a! i!topathological report- report from the attending ph1!ician and report from Oncologi!t and L or other te!t which the corporation ma1 pre!cri#e from time to time.

SCHEME FOR AUTO RICBSHA# DRI ERS

Social Securit1 group In!urance !cheme R A-'% R0*>,2)A D(0@.(, K R0*>,2)A 9-66.(, R-6.,. *atedC 6th Octo#er- 2GKK In the !cheme Rule! in Section II .lau!e <- = and K !hall #e !u#!tituted thereof. <. A!!uranceC An a!!urance !hall #e affected on the life of each mem#er in the One 9ear Renewa#le term A!!urance plan for a !um a!!ured of R!.4EEE with *ou#le Accident 8enefit! a! de!cri#ed in Rule K hereafter.

=. .ontri#utionC For !ecuring a!!urance mentioned in rule < a#o,e the .ontri#ution !hall #e at the rate of R!. 4EL% per mem#er pa1a#le on the (ntr1 *ate and on rele,ant Annual Renewal *ate! in re!pect of each mem#er. Out of the annual premium of R!. 4EL% mentioned a#o,e e,er1 mem#er !hall contri#ute a !um of R!. 27L%+R!. Fifteen onl1/. )hi! contri#ution !hall #e pa1a#le on the (ntr1 *ate and each !u#!eBuent Annual renewal date. )he amount of contri#ution of R!. 27L% per mem#er pa1a#le on (ntr1 *ate and each Su#!eBuent Annual Renewal *ate !hall #e adju!ted out of the Social Securit1 Fund !et up #1 the corporation. K. 8enefit! pa1a#le on death and di!a#ilit1 prior to terminal date C A/ 'pon the death of a mem#er prior to terminal date the !um a!!ured of R!. 4-EEEL% under the a!!urance then in force !hall #ecome pa1a#le to the 0odal agenc1 for the #enefit of the #eneficiar1. 8/ If the death of the mem#er take! place due to accident and without .au!e inter,ening- an additional !um of R!. 4EEEL% !hall #ecome pa1a#le to )he nodal agenc1 for the #enefit of the #eneficiar1. 0oteC F*eath due to Accident5 !hall meanC *eath occurring within GE da1! of the happening of #odil1 injur1 re!ulting !olel1 and directl1 from accident cau!ed #1 ,iolent- and ,i!i#le mean! independentl1 of an1 other cau!e. death R 2. cau!ed #1 intentional !elf%injur1- !uicide or attempted !uicide- in!anit1immortalit1 or whil!t the #eneficiar1 i! under the intake of into"icating liBuordrug or narcotic- or 3. )aking place a! a re!ult while the #eneficiar1 i! engaged in a,iation or aeronautic! in an1 capacit1 other than that of a fare pa1ing- part pa1ing or owe,er- due to accident !hall not include

non%pa1ing pa!!enger in an1 aircraft which i! authoriAed #1 rele,ant regulation! to carr1 !uch pa!!enger! and fl1ing #etween e!ta#li!hed aerodrome!- the #eneficiar1 ha,ing at that time no dutie! on #oard the aircraft or reBuiring de!cent there from. 4. .au!ed #1 injurie! re!ulting from riot!- ci,il commotion- re#ellion war+whether war declared or not/- in,a!ion- hunting- mountaineering- !teeple cha!ing or racing of an1 kind or 6. Re!ulting from #eneficiar1 committing an1 #reach of the law or 7. Ari!ing from emplo1ment #eneficiar1 in the armed force! or militar1 !er,iceof countr1 at war +whether war #e declared or not/ or from #eing engaged in police dut1 in the militar1- na,al or police organiAation. ./ If- a! a re!ult of accident #efore the terminal date- the mem#er #ecome! permanentl1 di!a#led with lo!! of !ight of #oth e1e! or amputate of #oth hand! at or a#o,e wri!t or amputation of #oth feet at or a#o,e the ankle!- a minimum !um of R!. 3-37E L% !hall #ecome pa1a#le to the nodal agenc1. )he #alance !um of R!. =7E L% !hall #ecome pa1a#le on the mem#er! death. */ If- a! a re!ult of accident #efore the terminal date- if partial di!a#ilit1 occur! #1 wa1 of lo!! of one e1e onl1 or amputation of one hand onl1 at or a#o,e the wri!t or amputation of one foot onl1 at or a#o,e the ankle- a minimum !um of R!. 2-7EEL% !hall #ecome pa1a#le to the nodal agenc1 and the #alance amount of R!. 2-7EEL% !hall #ecome pa1a#le the death of the mem#er

CHAPTER 6 RECOMMEDATIONS AND SUGGESTIONS

A! far a! the !cheme! are concerned- the1 ha,e #een de!igned ,er1 accuratel1 in order to meet the need! of in!urance of the Rural .on!umer. LI. ha! done a fairl1 e"cellent jo# #1 taking into con!ideration all the a!pect! of the rural life !t1le and income le,el!

while de!igning the!e !cheme!. )hu! the !cheme! a! !uch do not ha,e an1 major flaw! and are an e"cellent product to !ell to rural ma!!e!. )he ne"t point to highlight the 1.60@.(4 8.*2)&0,8 of the!e !cheme! to the rural people. A! !pecified earlier LI. ha! a ,er1 !pecific link for the deli,er1 of the!e !cheme!. )he link i! #etween LI. to 0odal agenc1 to the actual Rural .on!umer. )hu! the major link #etween LI. and the rural con!umer i! a 0odal Agenc1. )hu! ideall1 e,er1 po!!i#le nodal agenc1 !hould #e knowing what kind! of !cheme! are offered- !hould #e their reach- who can it co,er and !o on. )hi! re!pon!i#ilit1 lie! in the hand of #oth the LI. and the nodal agenc1. 8ut there i! a complete lack of communication #etween LI. and their major intermediator1 i.e. a nodal agenc1. )he re!pon!i#ilit1 of LI. to rethink their link and the deli,er1 mechani!m of the!e !cheme!. )he1 mainl1 need to identif1 what kind of a pro#lem i! there in thi! mechani!m and ha,e can it #e rectified in order to make rural in!urance !ucce!!ful concept.

)he pro#lem! will #e !ol,ed onl1 when !uch marketing and pu#licit1 practice! are taken up #1 the in!urance !ector in general and not con!idered a! the #urden of the IR*A or the LI. alone. (,en the IR*A ha! to make effort! to educate the rural ma!!e! on the concept of in!urance. La!t #ut not the lea!t- rural in!urance and it! !ignificance i! well under!tood #1 LI. of India #eing a go,ernment entit1- #ut thi! concept and it! importance need! to #e communicated to all the other pla1er! in the market to achie,e all round de,elopment of the in!urance !ector in rural area!. )hi! re!pon!i#ilit1 fall in the hand! of the IR*A. )he Authorit1 !hould take nece!!ar1 !tep! and form nece!!ar1 rule! and regulation! if reBuired to communicate to the pri,ate pla1er! the importance of rural in!urance in the o,er all de,elopment of the !ector.

CHAPTER 7 CONCLUSION
An attempt ha! #een made in thi! project to ,iew in detail the concept of rural life co,erage and rural in!urance in a countr1 like our!. Rural India i! !een a! one of the #igge!t market! in the world. It ha! ma"imum potential and thi! potential i! #eing tapped #1 all the companie! in all the po!!i#le !ector! #e it F&.G or 8anking)elecom or Information )echnolog1 and !o on. 8ut for no ,alid rea!on the in!urance companie! are !till reluctant to enter the rural area! e,en after !eeing !uch wide

potential and !uch a!!urance of !ucce!!. )he rea!on #eing unknown apart from LI. of India- no other compan1 !eem! to #e actuall1 intere!ted in tapping the huge market of o,er =E N out of the 2 #illion people. )he Bue!tion i! not onl1 of tapping the untapped market #ut al!o u!ing life in!urance a! a tool for !ecurit1 and progre!! of Rural India. It need! to #e e"plained to the people that thi! concept of rural in!urance i! much #etter than their traditional and mo!t of the modern form! of !a,ing! and the !udden need for mone1 can #e !ati!fied ,er1 well in an1 ca!e. )he popularit1 of in!urance i! not a! e"pected in the!e area!. (,en though LI. ha! done 7E N of it! #u!ine!! in the rural area! thi! 1ear- thi! ha! all come from the richer !ection of rural population in India. )he under de,eloped !till remain to #e illiterate a#out the concept. A! far a! I am concerned- I ha,e learned a lot a#out the potential reBuirement! of rural India while doing thi! project. It5! not onl1 related to in!urance #ut all #a!ic reBuirement! and ha,ing condition! in Rural India. )he num#er of !cheme! and policie! #rought out #1 LI. and a few other companie! are Buiet remarka#le and work toward! the cau!e need! to #e inten!ified. )o !um up the project it5! #een an e"cellent learning e"perience o,er all

#066 LIC (.8)0& I&,-(.( N%. 1$

)he Life In!urance .orporation +LI./ !o far reigned !upreme. And the re!ult- LI. #ecame almo!t !1non1mou! with life in!urance. $ith an arm1 of 6H27H3F1 dedicated agent!- thou!and! of polic1holder!- and 3E6K #ranche! around the countr1- it can trul1 afford to #oa!t of it! gigantic !iAe. )he in!urance indu!tr1 i! witne!!ing a ne,er #efore tran!formation. )he LI. i! no more a monopol1. Pri,ate in!urer! ha,e charged in and new!paper! the!e da1! are !plattered with in!urance ad,erti!ement! like ne,er #efore. Glo#al in!urer! are all !et to woo cu!tomer! with their product! and ha,e #rought in their profe!!ionali!m and impro,ed !er,ice- which will hopefull1 en!ure a much #etter treat for the Indian cu!tomer. )he #attle for garnering a larger market !hare ha! #egun alread1 #etween the #ehemoth and a num#er of pri,ate in!urer!. $hile the

pri,ate in!urer!- to create awarene!! ha,e increa!ed their media!pend- if recent report! are an1 indication LI. !eem! to #e #enefiting out of the e"erci!e. Pri,ate in!urer! are learning from LI.! failure! and draw#ack! and LI.5! ad,antage i! the monopol1 it enjo1ed !o far- the long !tanding goodwill % it! a!!et a! al!o it! huge e!ta#li!hed network of agent! while pri,ate in!urer! ha,e onl1 made a #eginning and ha,e a long wa1 to go. It i! too earl1 for pri,ate in!urer! to take on a giant a! the LI.. 8ut it i! certain that competition will increa!e and in cour!e of time inno,ati,e- ne,er%#efore in!urance product! will hopefull1 #e rolled out. And the ultimate winner will #e the con!umer.

ANNEAURES
SCHEMES BY ICICI PRUDENTIAL
R-()6 P6)&, I.I.I PruLife Rural Product! are de!igned to meet the need! of the rural con!umer!. )he!e product! offer the following feature!C 2. Low and Afforda#le Premium! 3. Life .o,er

4. Sa,ing! Option 6. a!!le free procedure I.I.I Prudential offer! 3 !peciall1 de!igned rural plan!. I.I.I Pru &itr R (ndowment Plan I.I.I Pru Surak!ha % Regular Premium

ICICI P(- M0'( offer! the following feature!C Life .o,er and Sa,ing! Regular Premium! Age at entr1 C 2K % 67 9r! Premium &ode C alf 9earl1 L 9earl1 )erm C 7-2E-27 9r! Sum A!!ured C R!.7-EEE %3E-EEE Premium L 9ear C R!. 7E= % 774 + SAC R!.2E-EEE/ &aturit1L*eath #enefit C Sum A!!ured

ICICI P(- S-()>,2) i! a regular premium polic1 with the following feature!C Indi,idual polic1 Onl1 Life co,er )erm % 4 P 7 9r! Age independent premium Age at entr1 C 2K % 67 9r! Sum A!!ured C Single Premium L 9ear C R! 7E % 3EE

&aturit1L*eath #enefit C R!.7-EEE % 3E-EEE *eath 8enefit C Sum A!!ured

BIBLIOGRAPHY
BOOBS REFERED
I. R 44 LIF( I0S'RA0.(- 81 In!urance In!titute of India. ORGA0ISA)IO0 OF .O&&(R.( R 81 Vipul Praka!han

#EBSITES REFERED
www.lic%india.com www.google.com www.mone1control.com