LIFE INSURANCE CORPORATION OF INDIA

SERVICE MARKETING REPORT

12/10/2009

Presented To: Prof. IN!S"U B"ADUR#

Submitted By: $I"IR D"A RAS % &' SNE"A $IS"RA),& C"ETAN BOT"ARA) && DEEPI A !AR!)-1 RA(ES" U$AR) -* NEERA( S"AR$A)*+ $ANPREET SONI)-. PAR/E0 ALI) ** AN IT BANNETT)+-

PGPCS Batch - IV

DECLARATION
"ereby de234re t54t t5e 6ro7e2t re6ort entit3ed 8INDI!O AIRLINES9 submitted for t5e SER/ICE $AR ETIN! of POST !RADUATE PRO!RA$ IN CORPORATE STUDIES: is our ori;in43 <or= 4nd t5e 6ro7e2t re6ort 54s not formed t5e b4sis for t5e 4<4rd of 4ny di63om4: de;ree: 4sso2i4te s5i6: fe33o<s5i6 or simi34r ot5er tit3es. It 54s not been submitted to 4ny ot5er uni>ersity or institution for t5e 4<4rd of 4ny de;ree or di63om4.

P342e: ISCO$: PUNE Date: 0 -10-2009

$I"IR D"A RAS % &' SNE"A $IS"RA),& C"ETAN BOT"ARA) && DEEPI A !AR!)-1 RA(ES" U$AR NEERA( S"AR$A)*+ $ANPREET SONI)-. PAR/E0 ALI) ** AN IT BANNETT)+-

ACKNO!LEDGEMENT
?it5out 4 6ro6er 2ombin4tion of ins6e2tion 4nd 6ers6ir4tion: it@s not e4sy to 425ie>e 4nyt5in;. T5ere is 43<4ys 4 sense of ;r4titude: <5i25 <e eA6ress to ot5ers for t5e 5e36 4nd t5e needy ser>i2es t5ey render durin; t5e different 654ses of our 3i>es. ?e too <ou3d 3i=e to do it 4s <e re433y <is5 to eA6ress my ;r4titude to<4rd 433 t5ose <5o 54>e been 5e36fu3 to me dire2t3y or indire2t3y durin; t5e de>e3o6ment of t5is 6ro7e2t. ?e <ou3d 3i=e to t54n= my 6rofessor P"#$% K&'()h*+ Bha,*"- <5o <4s 43<4ys t5ere to 5e36 4nd ;uide us <5en <e needed 5e36. "is 6er2e6ti>e 2riti2ism =e6t us <or=in; to m4=e t5is 6ro7e2t more fu33 6roof. ?e 4re t54n=fu3 to 5is for 5is en2our4;in; 4nd >43u4b3e su66ort. ?or=in; under 5im <4s 4n eAtreme3y =no<3ed;e4b3e 4nd enri25in; eA6erien2e for us. ?e 4re >ery t54n=fu3 to 5im for 433 t5e >43ue 4ddition 4nd en54n2ement done to us.

$I"IR D"A RAS % &' SNE"A $IS"RA),& C"ETAN BOT"ARA) && DEEPI A !AR!)-1 RA(ES" U$AR) -*

NEERA( S"AR$A)*+ $ANPREET SONI)-. PAR/E0 ALI) ** AN IT BANNETT)+-

!hat I) L&$e I')*"a'ceB

Life insur4n2e is 4 2ontr42t t54t 63ed;es 64yment of 4n 4mount to t5e 6erson 4ssured Cor 5is nomineeD on t5e 5466enin; of t5e e>ent insured 4;4inst. T5e 2ontr42t is >43id for 64yment of t5e insured 4mount durin;: T5e d4te of m4turity: or

S6e2ified d4tes 4t 6eriodi2 inter>43s: or Unfortun4te de4t5: if it o22urs e4r3ier. !h- !e Nee, I')*"a'ce:
Life insur4n2e is 4 2ont42t by <5i25 you 24n 6rote2t yourse3f 4;4inst s6e2ifi2 un2ert4inties by 64yin; 4 6remium o>er 4 6eriod. Sin2e e425 one of us durin; our 3i>es 4re f42ed <it5 numerous ris=s)f433in; 5e43t5: fin4n2i43 3osses: 422ident 4nd e>en f4t43ities.

P"#tect&#'
#ou need 3ife insur4n2e to be t5ere 4nd 6rote2t t5e 6eo63e you 3o>e: m4=in; sure t54t your f4mi3y 54s 4 me4ns to 3oo= 4fter itse3f 4fter you 4re ;one. It is 4 t5ou;5tfu3 business 2on2e6t desi;ned to 6rote2t t5e e2onomi2 >43ue of 4 5um4n 3ife for t5e benefit of t5ose fin4n2i433y de6endent on 5im.

Ret&"e.e't
Life insur4n2e m4=es sure t54t you 54>e re;u34r in2ome 4fter you retire 4nd 5e36s you m4int4in your st4nd4rd of 3i>in;. It 24n ensure t54t your 6ost)retirement ye4rs 4re s6ent in 6e42e 4nd 2omfort.

Sa/&'() a', I'/e)t.e't)

Insur4n2e is 4 me4ns to S4>e 4nd In>est. #our 6eriodi2 6remiums 4re 3i=e S4>in;s 4nd you 4re 4ssured of 4 3um6 sum 4mount on m4turity. A 6o3i2y 24n 2ome in 54ndy 4t t5e time of your 25i3d@s edu24tion or m4rri4;eE Besides: it 24n be used 4s su663ement43 retirement in2ome.

Ta0 Be'e$&t)
Life insur4n2e is one of t5e best t4A s4>in; o6tions tod4y. #our t4A 24n be s4>ed t<i2e on 4 3ife insur4n2e 6o3i2y)on2e <5en

1ISTOR2 3 BACKGRO4ND O5 LIC

T5e story of insur4n2e is 6rob4b3y 4s o3d 4s t5e story of m4n=ind. T5e s4me instin2t t54t 6rom6ts modern businessmen tod4y to se2ure t5emse3>es 4;4inst 3oss 4nd dis4ster eAisted in 6rimiti>e men 43so. T5ey too sou;5t to 4>ert t5e e>i3 2onseFuen2es of fire 4nd f3ood 4nd 3oss of 3ife 4nd <ere <i33in; to m4=e some sort of s42rifi2e in order to 425ie>e se2urity. T5ou;5 t5e 2on2e6t of insur4n2e is 34r;e3y 4 de>e3o6ment of t5e re2ent 64st: 64rti2u34r3y 4fter t5e industri43 er4 % 64st fe< 2enturies % yet its be;innin;s d4te b42= 43most G+++ ye4rs. Life Insur4n2e in its modern form 24me to Indi4 from En;34nd in t5e ye4r &'&'. Orient43 Life Insur4n2e Com64ny st4rted by Euro6e4ns in C432utt4 <4s t5e first 3ife insur4n2e 2om64ny on Indi4n Soi3. A33 t5e insur4n2e 2om64nies est4b3is5ed durin; t54t 6eriod <ere brou;5t u6 <it5 t5e 6ur6ose of 3oo=in; 4fter t5e needs of Euro6e4n 2ommunity 4nd Indi4n n4ti>es <ere not bein; insured by t5ese 2om64nies. "o<e>er: 34ter <it5 t5e efforts of eminent 6eo63e 3i=e B4bu $utty343 Se43: t5e forei;n 3ife insur4n2e 2om64nies st4rted insurin; Indi4n 3i>es. But Indi4n 3i>es <ere bein; tre4ted 4s sub)st4nd4rd 3i>es 4nd 5e4>y eAtr4 6remiums <ere bein; 254r;ed on t5em. Bomb4y $utu43 Life Assur4n2e So2iety 5er43ded t5e birt5 of first Indi4n 3ife insur4n2e 2om64ny in t5e ye4r &'1+: 4nd 2o>ered Indi4n 3i>es 4t norm43 r4tes. St4rtin; 4s Indi4n enter6rise <it5 5i;53y 64trioti2 moti>es: insur4n2e 2om64nies 24me into eAisten2e to 24rry t5e mess4;e of insur4n2e 4nd so2i43 se2urity t5rou;5 insur4n2e to >4rious se2tors of so2iety. B54r4t Insur4n2e Com64ny C&'HGD <4s 43so one of su25 2om64nies ins6ired by n4tion43ism. T5e S<4des5i mo>ement of &H+.)&H+1 ;4>e rise to more insur4n2e 2om64nies. T5e United Indi4 in $4dr4s: N4tion43 Indi4n 4nd N4tion43

Insur4n2e in C432utt4 4nd t5e Co)o6er4ti>e Assur4n2e 4t L45ore <ere est4b3is5ed in &H+G. In &H+1: "indust4n Co)o6er4ti>e Insur4n2e Com64ny too= its birt5 in one of t5e rooms of t5e (or4s4n=o: 5ouse of t5e ;re4t 6oet R4bindr4n4t5 T4;ore: in C432utt4. T5e Indi4n $er24nti3e: !ener43 Assur4n2e 4nd S<4des5i Life C34ter Bomb4y LifeD <ere some of t5e 2om64nies est4b3is5ed durin; t5e s4me 6eriod. Prior to &H&* Indi4 54d no 3e;is34tion to re;u34te insur4n2e business. In t5e ye4r &H&*: t5e Life Insur4n2e Com64nies A2t: 4nd t5e Pro>ident Fund A2t <ere 64ssed. T5e Life Insur4n2e Com64nies A2t: &H&* m4de it ne2ess4ry t54t t5e 6remium r4te t4b3es 4nd 6eriodi243 >43u4tions of 2om64nies s5ou3d be 2ertified by 4n 42tu4ry. But t5e A2t dis2rimin4ted bet<een forei;n 4nd Indi4n 2om64nies on m4ny 422ounts: 6uttin; t5e Indi4n 2om64nies 4t 4 dis4d>4nt4;e.

T5e first t<o de24des of t5e t<entiet5 2entury s4< 3ot of ;ro<t5 in insur4n2e business. From -- 2om64nies <it5 tot43 business)in)for2e 4s Rs.**.-- 2rore: it rose to &1G 2om64nies <it5 tot43 business)in)for2e 4s Rs.*H' 2rore in &H,'. Durin; t5e mus5roomin; of insur4n2e 2om64nies m4ny fin4n2i433y unsound 2on2erns <ere 43so f3o4ted <5i25 f4i3ed miser4b3y. T5e Insur4n2e A2t &H,' <4s t5e first 3e;is34tion ;o>ernin; not on3y 3ife insur4n2e but 43so non)3ife insur4n2e to 6ro>ide stri2t st4te 2ontro3 o>er insur4n2e business. T5e dem4nd for n4tion43iI4tion of 3ife insur4n2e industry <4s m4de re6e4ted3y in t5e 64st but it ;4t5ered momentum in &H-- <5en 4 bi33 to 4mend t5e Life Insur4n2e A2t &H,' <4s introdu2ed in t5e Le;is34ti>e Assemb3y. "o<e>er: it <4s mu25 34ter on t5e &Ht5 of (4nu4ry: &H.G: t54t 3ife insur4n2e in Indi4 <4s n4tion43iIed. About &.- Indi4n insur4n2e 2om64nies: &G non) Indi4n 2om64nies 4nd 1. 6ro>ident <ere o6er4tin; in Indi4 4t t5e time of n4tion43iI4tion. N4tion43iI4tion <4s 422om63is5ed in t<o st4;esJ initi433y t5e m4n4;ement of t5e 2om64nies <4s t4=en o>er by me4ns of 4n Ordin4n2e: 4nd 34ter: t5e o<ners5i6 too by me4ns of 4 2om6re5ensi>e bi33. T5e P4r3i4ment of Indi4 64ssed t5e Life Insur4n2e Cor6or4tion A2t on t5e &Ht5 of (une &H.G: 4nd t5e Life Insur4n2e

Cor6or4tion of Indi4 <4s 2re4ted on &st Se6tember: &H.G: <it5 t5e ob7e2ti>e of s6re4din; 3ife insur4n2e mu25 more <ide3y 4nd in 64rti2u34r to t5e rur43 4re4s <it5 4 >ie< to re425 433 insur4b3e 6ersons in t5e 2ountry: 6ro>idin; t5em 4deFu4te fin4n2i43 2o>er 4t 4 re4son4b3e 2ost. LIC 54d . Ion43 offi2es: ,, di>ision43 offi2es 4nd *&* br4n25 offi2es: 464rt from its 2or6or4te offi2e in t5e ye4r &H.G. Sin2e 3ife insur4n2e 2ontr42ts 4re 3on; term 2ontr42ts 4nd durin; t5e 2urren2y of t5e 6o3i2y it reFuires 4 >4riety of ser>i2es need <4s fe3t in t5e 34ter ye4rs to eA64nd t5e o6er4tions 4nd 6342e 4 br4n25 offi2e 4t e425 distri2t 5e4dFu4rter. re)or;4niI4tion of LIC too= 6342e 4nd 34r;e numbers of ne< br4n25 offi2es <ere o6ened. As 4 resu3t of re)or;4nis4tion ser>i2in; fun2tions <ere tr4nsferred to t5e br4n25es: 4nd br4n25es <ere m4de 422ountin; units. It <or=ed <onders <it5 t5e 6erform4n2e of t5e 2or6or4tion. It m4y be seen t54t from 4bout *++.++ 2rores of Ne< Business in &H.1 t5e 2or6or4tion 2rossed &+++.++ 2rores on3y in t5e ye4r &HGH)1+: 4nd it too= 4not5er &+ ye4rs for LIC to 2ross *+++.++ 2rore m4r= of ne< business. But <it5 re)or;4nis4tion 5466enin; in t5e e4r3y ei;5ties: by &H'.)'G LIC 54d 43re4dy 2rossed 1+++.++ 2rore Sum Assured on ne< 6o3i2ies. Tod4y LIC fun2tions <it5 *+-' fu33y 2om6uteriIed br4n25 offi2es: &++ di>ision43 offi2es: 1 Ion43 offi2es 4nd t5e Cor6or4te offi2e. LIC@s ?ide Are4 Net<or= 2o>ers &++ di>ision43 offi2es 4nd 2onne2ts 433 t5e br4n25es t5rou;5 4 $etro Are4 Net<or=. LIC 54s tied u6 <it5 some B4n=s 4nd Ser>i2e 6ro>iders to offer on)3ine 6remium 2o33e2tion f42i3ity in se3e2ted 2ities. LIC@s ECS 4nd AT$ 6remium 64yment f42i3ity is 4n 4ddition to 2ustomer 2on>enien2e. A64rt from on)3ine "yder4b4d: SA$PAR ios=s 4nd I/RS: Info Centres 54>e been 2ommissioned 4t $umb4i: A5med4b4d: B4n;43ore: C5enn4i: o3=4t4: Ne< De35i: Pune 4nd m4ny ot5er 2ities. ?it5 4 >ision of offi2es. T5e s4te33ite offi2es 4re sm433er: 3e4ner 4nd 23oser to t5e 6ro>idin; e4sy 422ess to its 6o3i2y5o3ders: LIC 54s 34un25ed its SATELLITE

2ustomer. T5e di;it43iIed re2ords of t5e s4te33ite offi2es <i33 f42i3it4te 4ny<5ere ser>i2in; 4nd m4ny ot5er 2on>enien2es in t5e future. LIC 2ontinues to be t5e domin4nt 3ife insurer e>en in t5e 3iber43iIed s2en4rio of Indi4n insur4n2e 4nd is mo>in; f4st on 4 ne< ;ro<t5 tr47e2tory sur64ssin; its o<n 64st re2ords. LIC 54s issued o>er one 2rore 6o3i2ies durin; t5e 2urrent ye4r. It 54s 2rossed t5e mi3estone of issuin; &:+&:,*:H.. ne< 6o3i2ies by &.t5 O2t: *++.: 6ostin; 4 5e43t5y ;ro<t5 r4te of &G.G1K o>er t5e 2orres6ondin; 6eriod of t5e 6re>ious ye4r. From t5en to no<: LIC 54s 2rossed m4ny mi3estones 4nd 54s set un6re2edented 6erform4n2e re2ords in >4rious 4s6e2ts of 3ife insur4n2e business. T5e s4me moti>es <5i25 ins6ired our foref4t5ers to brin; insur4n2e into eAisten2e in t5is 2ountry ins6ire us 4t LIC to t4=e t5is mess4;e of 6rote2tion to 3i;5t t5e 34m6s of se2urity in 4s m4ny 5omes 4s 6ossib3e 4nd to 5e36 t5e 6eo63e in 6ro>idin; se2urity to t5eir f4mi3ies.

OB(ECTI/E OF LIC

S6re4d Life Insur4n2e <ide3y 4nd in 64rti2u34r to t5e rur43 4re4s 4nd to t5e so2i433y 4nd e2onomi2433y b42=<4rd 234sses <it5 4 >ie< to re425in; 433 insur4b3e 6ersons in t5e 2ountry 4nd 6ro>idin; t5em 4deFu4te fin4n2i43 2o>er 4;4inst de4t5 4t 4 re4son4b3e 2ost.

$4AimiIe mobi3iI4tion of 6eo63eLs s4>in;s by m4=in; insur4n2e)3in=ed s4>in;s 4deFu4te3y 4ttr42ti>e.

Be4r in mind: in t5e in>estment of funds: t5e 6rim4ry ob3i;4tion to its 6o3i2y5o3ders: <5ose money it 5o3ds in trust: <it5out 3osin; si;5t of t5e interest of t5e 2ommunity 4s 4 <5o3eJ t5e funds to be de63oyed to t5e best 4d>4nt4;e of

t5e in>estors 4s <e33 4s t5e 2ommunity 4s 4 <5o3e: =ee6in; in >ie< n4tion43 6riorities 4nd ob3i;4tions of 4ttr42ti>e return.

Condu2t business <it5 utmost e2onomy 4nd <it5 t5e fu33 re43iI4tion t54t t5e moneys be3on; to t5e 6o3i2y5o3ders.

A2t 4s trustees of t5e insured 6ub3i2 in t5eir indi>idu43 4nd 2o33e2ti>e 24642ities.

$eet t5e >4rious 3ife insur4n2e needs of t5e 2ommunity t54t <ou3d 4rise in t5e 254n;in; so2i43 4nd e2onomi2 en>ironment.

In>o3>e 433 6eo63e <or=in; in t5e Cor6or4tion to t5e best of t5eir 2464bi3ity in furt5erin; t5e interests of t5e insured 6ub3i2 by 6ro>idin; effi2ient ser>i2e <it5 2ourtesy.

Promote 4mon;st 433 4;ents 4nd em63oyees of t5e Cor6or4tion 4 sense of 64rti2i64tion: 6ride 4nd 7ob s4tisf42tion t5rou;5 dis254r;e of t5eir duties <it5 dedi24tion to<4rds 425ie>ement of Cor6or4te Ob7e2ti>e.

$ISSON M /ISION
M&))&#'
6E078#"e a', e'ha'ce the 9*a8&t- #$ 8&$e #$ 7e#78e th"#*(h $&'a'c&a8 )ec*"&t- :- 7"#/&,&'( 7"#,*ct) a', )e"/&ce) #$ a)7&"e, att"&:*te) ;&th c#.7et&t&/e "et*"')< a', :- "e',e"&'( "e)#*"ce) $#" ec#'#.&c ,e/e8#7.e't%6

V&)&#'
6A t"a')-'at&#'a88- c#.7et&t&/e $&'a'c&a8 c#'(8#.e"ate #$ )&('&$&ca'ce t# )#c&et&e) a', P"&,e #$ I',&a%6

LIC O7e"ate A88 O/e" I',&a

SERVICE LINES O5 T1E COMPNA2

INS4RANCE PLANS
A) &',&/&,*a8) &t &) &'he"e't t# ,&$$e"% Each &',&/&,*a8) &')*"a'ce 'ee,) a', "e9*&"e.e't) a"e ,&$$e"e't $"#. that #$ the #the")% LIC) I')*"a'ce P8a') a"e 7#8&c&e) that ta8+ t# -#* &',&/&,*a88- a', (&/e -#* the .#)t )*&ta:8e #7t&#') that ca' $&t -#*" "e9*&"e.e't%

PENSION PLANS
Pe')&#' P8a') a"e I',&/&,*a8 P8a') that (a=e &'t# -#*" $*t*"e a', $#"e)ee $&'a'c&a8 )ta:&8&t- ,*"&'( -#*" #8, a(e% The)e 7#8&c&e) a"e .#)t )*&te, $#" )e'&#" c&t&=e') a', th#)e 78a''&'( a )ec*"e $*t*"e< )# that -#* 'e/e" (&/e *7 #' the :e)t th&'() &' 8&$e%

UNIT PLANS
4'&t 78a') a"e &'/e)t.e't 78a') $#" th#)e ;h# "ea8&)e the ;#"th #$ ha",-ea"'e, .#'e-% The)e 78a') he87 -#* )ee -#*" )a/&'() -&e8, "&ch :e'e$&t) a', he87 -#* )a/e ta0 e/e' &$ -#* ,#'>t ha/e c#')&)te't &'c#.e%

SPECIAL PLANS LIC?) S7ec&a8 P8a') a"e '#t 78a') :*t #77#"t*'&t&e) that +'#c+ #' -#*" ,##"
#'ce &' a 8&$et&.e% The)e 78a') a"e a 7e"$ect :8e', #$ &')*"a'ce< &'/e)t.e't a', a 8&$et&.e #$ ha77&'e))@

!ROUP SC"E$E
G"#*7 I')*"a'ce Sche.e &) 8&$e &')*"a'ce 7"#tect&#' t# ("#*7) #$ 7e#78e% Th&) )che.e &) &,ea8 $#" e.78#-e")< a))#c&at&#')< )#c&et&e) etc% a', a88#;) -#* t# e'A#("#*7 :e'e$&t) at "ea88- 8#; c#)t)%

?IT"DRA?N PLAN

KE2 EBEC4TIVES
Me.:e") O' The B#a", O$ The C#"7#"at&#'

Sh"& T% S% VICA2AN CC54irm4nD Sh"&% D%K% Meh"#t"a C$4n4;in; Dire2tor ) LICD

Sh"&% Th#.a) Mathe; T% C$4n4;in; Dire2tor ) LICD Sh"&% A%K% Da)(*7ta C$4n4;in; Dire2tor ) LICD Sh"&% A)h#+ Cha;8a CFin4n2e Se2ret4ry: $inistry of Fin4n2e: !o>t. of Indi4D Sh"&% G%C% Chat*"/e,& CAddition43 Se2ret4ry: De64rtment of Fin4n2i43 Ser>i2es: $inistry of Fin4n2e: !o>t. of Indi4.D Sh"&% 2#(e)h L#h&-a CC54irm4n 2um $4n4;in; Dire2tor: !IC of Indi4D Sh"&% T%C% Ve'+at S*:"a.a'&a' CC54irm4n M $4n4;in; Dire2tor. EA6ort Im6ort B4n= of Indi4D D"% S##"a'a, RaAa)he+h"a' Sh"&% M#'&) R% K&,;a&

MACOR PLA2ERS O5 T1E IND4STR2

L&$e I')*"a'ce C#.7a'&e)

S8% N#%
&.

I')*"e")

5#"e&(' Pa"t'e")

Re('% N#%

Date #$ Re(&)t"at&#'
*,.&+.*+++

2ea" #$ O7e"at&#'
*+++)+&

"DFC St4nd4rd Life Insur4n2e Co. Ltd.

St4nd4rd Life Assur4n2e: U Ne< #or= Life: USA

&+&

*.

$4A Ne< #or= Life Insur4n2e Co. Ltd.

&+-

&..&&.*+++

*+++)+&

,.

ICICI)Prudenti43 Life Insur4n2e Co. Ltd.

Prudenti43 : U

&+.

*-.&&.*+++

*+++)+&

-.

Om ot4= Life Insur4n2e Co. Ltd.

O3d $utu43: Sout5 Afri24 Sun Life: C4n4d4

&+1

&+.+&.*++&

*++&)+*

..

Bir34 Sun Life Insur4n2e Co. Ltd.

&+H

,&.+&.*++&

*+++)+&

G.

T4t4)AI! Life Insur4n2e Co. Ltd.

Ameri24n Intern4tion43 Assur4n2e Co.: USA BNP P4rib4s Assur4n2e SA: Fr4n2e IN! Insur4n2e Intern4tion43 B./.: Net5er34nds

&&+

&*.+*.*++&

*+++)+&

1.

SBI Life Insur4n2e Co. Ltd.

&&&

*H.+,.*++&

*++&)+*

'.

IN! /ysy4 Life Insur4n2e Co. Ltd.

&&-

+*.+'.*++&

*++&)+*

H.

A33i4nI B4747 Life Insur4n2e Co. Ltd.

A33i4nI: !erm4ny

&&G

+,.+'.*++&

*++&)+*

&+.

$et3ife Indi4 Insur4n2e Co. Ltd.

$et3ife Intern4tion43 "o3din;s Ltd.: USA )))

&&1

+G.+'.*++&

*++&)+*

&&.

Re3i4n2e Life Insur4n2e Co. Ltd. CE4r3ier A$P S4nm4r Life Insur4n2e Com64ny from ,.&.+* to

&*&

+,.+&.*++*

*++&)+*

S8% N#%
*H.H.+.D

I')*"e")

5#"e&(' Pa"t'e")

Re('% N#%

Date #$ Re(&)t"at&#'

2ea" #$ O7e"at&#'

&*.

A/I/A

A>i>4 Intern4tion43 "o3din;s Ltd.: U

&**

&-.+..*++*

*++*)+,

&,.

S454r4 Life Insur4n2e Co. Ltd.

)))

&*1

+G.+*.*++-

*++-)+.

&-.

S5rir4m Life Insur4n2e Co. Ltd.

S4n34m: Sout5 Afri24

&*'

&1.&&.*++.

*++.)+G

&..

B54rti ANA Life Insur4n2e Co. Ltd.

ANA "o3din;s: Fr4n2e

&,+

&-.+1.*++G

*++G)+1

&G.

Future !ener43i Indi4 Life Insur4n2e Com64ny Ltd.

P4nt43oon Ret4i3 Ltd.J S4in $4r=etin; Net<or= P>t. Ltd. CS$NPLD: !ener43i: It43y

&,,

+-.+H.*++1

*++1)+'

&1.

IDBI Fortis Life Insur4n2e Com64ny Ltd.

Fortis: Net5er34nds

&,.

&H.&*.*++1

*++1)+'

&'.

C4n4r4 "SBC OBC Life Insur4n2e Com64ny Ltd.

"SBC: U

&,G

+'.+..*++'

*++')+H

&H.

Ae;on Re3i;4re Life Insur4n2e Com64ny Ltd.

Re3i;4re: Net5er34nds

&,'

*1.+G.*++'

*++')+H

*+.

DLF Pr4meri24 Life

Prudenti43 of Ameri24:

&-+

*1.+G.*++'

*++')+H

S8% N#%

I')*"e")

5#"e&(' Pa"t'e")

Re('% N#%

Date #$ Re(&)t"at&#'

2ea" #$ O7e"at&#'

Insur4n2e Co. Ltd. *&. Life Insur4n2e Cor6or4tion of Indi4

USA .&*

N4MBER O5 LI5E INS4RANCE O55ICES-COMPAN2 !ISE DA) #' E1)t Ma"chF

I')*"e" A>i>4 B4747 A33i4nI 200G *&, &++1 200H &-+ '11 200I &&+ .G1 200J .+ &., 200 ** -H 200E &* ,, 2002 , &1 2001 ) &

B54rti AA4 Bir34 Sun3ife Future !ener43i "DFC Std ICICI Pru IDBI Fortis IN! /ysy4 ot4= $45indr4 $4A Ne<#or= $etLife Re3i4n2e Life S454r4 SBI Life S5rir4m T4t4 AI! P"&/ate T#ta8 LIC I',*)t"- T#ta8

11 .,' H .GH &H.' * *G. &.& &HH1-. ,, *++ ., *', IE91 2J22 G91E

&G &-'

& H1

) .,

) -&

) *H

) &H

) *

--' .',

&.+ &1.

H+ &+H

*G GH

&' *H

&-

) G

&', 1. &&' ., &.H ,, &,' &* 'H E0H2 2E01 JEHE

G' -G '-, &.1 &' -G && 1* 1I J 2220 EGIJ

,' -, G,. '+ &' ,& ) -+ G0 219H E001

*G ,H ,, &G -' * &H ) *G 1I 219I 2I12

&G *' *, ' ,. ) &+ ) &, 2J 2191 2 J

H &. , &1 ) . ) G 11I 2190 2E0I

) ) ) ) ) ) & ) , 1E 21GI 2199

MACOR COMPETITIORS

BACAC ALLIANK

B4747 A33i4nI Life Insur4n2e is 4 union bet<een A33i4nI SE: one of t5e 34r;est Insur4n2e Com64ny 4nd B4747 Finser>. A33i4nI SE is 4 3e4din; insur4n2e 2on;3omer4te ;3ob433y 4nd one of t5e 34r;est 4sset m4n4;ers in t5e <or3d: m4n4;in; 4ssets <ort5 o>er 4 Tri33ion CO>er INR. ..: ++:+++ CroresD. A33i4nI SE 54s o>er &&. ye4rs of fin4n2i43 eA6erien2e 4nd is 6resent in o>er 1+ 2ountries 4round t5e <or3d. At B4747 A33i4nI Life Insur4n2e: 2ustomer de3i;5t is our ;uidin; 6rin2i63e. Our business 65i3oso65y is to ensure eA2e33ent insur4n2e 4nd in>estment so3utions by offerin; 2ustomised 6rodu2ts: su66orted by t5e best te25no3o;y.

Acce8e"ate, G"#;th
5&)ca8 2ea" *++&)*++*CG mt5sD *++*)*++, *++,)*++*++-)*++. *++.)*++G *++G)*++1 *++1)*++' N#% #$ 7#8&c&e) )#8, *&:,1 &:&.:HG. &:'G:--, *:'':&'H 1:'&:G'. *+:1H:*&1 ,1:--:1-* Ne< Business in F# Rs. 1 2r. Rs. G,., 2r. Rs. &'+ 2r. Rs. '.1 2r. Rs. *:1&1 2r. Rs. -:,+* 2r. Rs. G:G1- 2r.

ICICI PR4DENTIAL
ICICI Prudenti43 Life Insur4n2e Com64ny is 4 7oint >enture bet<een ICICI B4n= ) one of Indi4Ls foremost fin4n2i43 ser>i2es 2om64nies)4nd Prudenti43 632 ) 4 3e4din; intern4tion43 fin4n2i43 ser>i2es ;rou6 5e4dFu4rtered in t5e United 1-K 4nd Prudenti43 632 5o3din; *GK. ?e be;4n our o6er4tions in De2ember *+++ 4fter re2ei>in; 466ro>43 from Insur4n2e Re;u34tory De>e3o6ment Aut5ority CIRDAD. Tod4y: our n4tion)<ide te4m 2om6rises of *+1- br4n25es Cin23usi>e of &:&&G mi2ro)offi2esD: o>er **.:+++ 4d>isorsJ 4nd 1 b4n24ssur4n2e 64rtners. ICICI Prudenti43 is t5e first 3ife insurer in Indi4 to re2ei>e 4 N4tion43 Insurer Fin4n2i43 Stren;t5 r4tin; of AAA CIndD from Fit25 r4tin;s. For t5ree ye4rs in 4 ro<: ICICI Prudenti43 54s been >oted 4s Indi4Ls $ost Trusted Pri>4te Life Insurer: by T5e E2onomi2 Times ) AC Nie3sen OR! $4r; sur>ey of L$ost Trusted Br4ndsL. As <e ;ro< our distribution: 6rodu2t r4n;e 4nd 2ustomer b4se: <e 2ontinue to tire3ess3y u65o3d our 2ommitment to de3i>er <or3d)234ss fin4n2i43 so3utions to 2ustomers 433 o>er Indi4. in;dom. Tot43 246it43 infusion st4nds 4t Rs. -1.'+ bi33ion: <it5 ICICI B4n= 5o3din; 4 st4=e of

S!OT ANAL2SIS O5 T1E COMPAN2

T5e S!OT a'a8-)&) in>o3>es 4n in de6t5 study of t5e stren;t5 4nd <e4=ness of t5e 6ro>ided or;4niI4tion 4nd it 43so 6ro>ides inform4tion to t5e 6romoter: 2onsu3t4nt: ot5er 4;en2ies 4nd 5e36s in 3on; term >i4bi3ity of t5e 6ro7e2t.

St"e'(th :
&. It is t5e o3dest 4nd most <e33 eA6erien2ed 634yer 54>in; 4 P4n Indi4 6resen2e. *. LIC 54s 4 stron; 4nd >ery <e33 de>e3o6ed distribution net<or=. ,. It is 54>in; 4 5u;e 2onsumer b4se 4nd is e>o3>ed 4s one of t5e most 6o<erfu3 br4nds of t5e 2ountry. -. It 54s 4 34r;e 6rodu2t 6ortfo3io 4nd 234im sett3ement is e4sier to ;et. .. It 54s t5e 4d>4nt4;e of ;o>ernment ;u4r4ntee is 422om64nied <it5 it. G. L4r;est insur4n2e Com64ny in t5e <or3d in Customer B4se C*, 2rore 2ustomersD

1. No.& insur4n2e 2om64ny in t5e <or3d in terms of 4;en2y C4bout &.& $i33ion 4;entsD '. LIC is No.& insurer in t5e <or3d in /o3ume M So3d 4round ,.1. Cr.Po3i2ies in *++1)*++'. H. *nd Bi;;est Re43 Est4te O<ner neAt to Indi4n R4i3<4ys. &+.LIC is one of t5e "i;5est in2ome t4A 634yin; Or;4niI4tion. For Fin4n2i43 #e4r *++1)+': LIC 54s 64id 4d>4n2e T4A Rs.*G*1. &- Cr. M Ser>i2e T4A Rs.&*H*. &. Cr. &&."4s "i;5est insur4n2e Profession43s C C3ub $ember 4;ents D &*.On3y - 2ountries in t5e <or3d 54>e more 6o6u34tion t54t LICOs 6o3i2y 5o3ders.
&,. No.& insur4n2e Com64ny in t5e <or3d in terms of 234ims 64id. &-. LIC Sett3es *.*& 234ims 6er se2ond: LIC sett3ed &,H 34=5s 234ims durin; t5e ye4r *++1)*++'. &.. Prom6t sett3ement of 234ims CH1K m4turity 234im sett3ed on or before due d4teD &G. One of t5e Lo<est outst4ndin; C34im R4tio in t5e <or3d C $4turityPS B C34im) +.+1KD A,/a'ce, Tech'#8#(--5#" :ette" C*)t#.e" Se"/&ce &. Com6uteriIed 4nd net<or=ed *+-' br4n25 offi2es 4nd &.H s4te33ite offi2es t5rou;5out t5e 2ountry. *. Use of "i;5 Te25)?AN:LAN:I/RS M ED$S ,. LIC is se2ond 34r;est PC user in t5e 2ountry. -. ED$S to m4=e LIC 4 646er3ess offi2e) En4b3in; Po3i2y ser>i2in; M 64yments t5rou;5 433 br4n25s in t5e 2ountry. .. Premium P4yment F42i3ity eAtended t5rou;5 net<or=ed *+-' br4n25es: ECS: AT$Ls

t5rou;5 internet: on3ine 6ort43s: 2o33e2tin; b4n= CAAis B4n=D: AP on3ine: t5rou;5 S$S: t5rou;5 se3e2ted 4;ents: No< LIC Premium 24n 43so be 64id t5rou;5. I% 6S*/&,ha &'$# Se"/e KIOSKS6 a88 #/e" I',&a% 1. Po3i2y "o3derLs Port43 433o< on 3ine 422ess to 6o3i2y st4tus 4nd ot5er det4i3s. '. Info 2entre set u6 in &* 2ities for 2ustomers to inter42t e4si3y. Di43)&*.& for det4i3s.
H. -. inter42ti>e /oi2e Res6onse System CI/RSD 2enters 433 o>er t5e 2ountry to 6ro>ide

inform4tion on 6o3i2y ser>i2in;. F42i3ity is 4>4i34b3e *- 1: F42i3ity 24n be 4>4i3ed on fo33o<in; 65one Nos. &*.& OR +*+)*..&-*-'.

S#c&a8 St"e'(th
LIC ) 4n institution bui3der 6romotin; m4ny fin4n2i43 4nd insur4n2e institutes 3i=e NSE: NCDEN: LIC $utu43 Fund: Sto2= "o3din; Cor6or4tion of Indi4: N4tion43 insur4n2e A24demy: insur4n2e institute of Indi4 et2. LIC 54s forei;n o6er4tions in $4uritius: Fi7i 4nd London 4nd 54s 7oint >enture o6er4tin; in Sri 34n=4: Ne643: B45r4in M S4udi Ar4bi4. Ne< offi2es <i33 be 5ort3y o6rned in Austr43i4: USAMC4n4d4. LIC is =no<n 4s QPension Pro>iderQ of t5e 2ountry. &st Pension 2om64ny in Indi4 is f3o4ted by LIC 4s QLIC Pension Fund LtdQ on *&st No> *++1. First to 2re4te <4>es in mi2ro insur4n2e se2tor by insurin; 6eo63e be3o< t5e 6o>erty 3ine. In ye4r *++1)*++': '..- 342 6o3i2ies so3d t5rou;5 Q(ee>4n $4d5urQP34n. ?idest r4n;e of 634ns C4bout -'D for e>ery need of t5e 2ustomer of + to 1H ye4rs of

4;e. Bi;;est Portfo3io of !rou6 insur4n2e s25emes 4>4i34b3e. Q(ee>4n S4r43Q one of t5e 6rodu2t of LIC ;ot QBest inno>4tion 6rodu2t Q 4<4rd from I.R.D.A. LIC 54s 2o>ered 3i2= Ris= of &.&, 2rore 2itiIens t5rou;5 QAA$ AD$I BI$A #O(ANAQ M Q (ANAS"REE BI$A #O(ANAQ. /ery UniFue S434ry s4>in; Portfo3io. "i;5est Number of Cor6or4te C3ients in !rou6 insur4n2e S25eme. EA6endin; Distribution C54nne3 t5rou;5 B4n24ssur4n2es: Cor6or4te A;en2ies: Bro=er s5i6 M C5ief Life insur4r4n2e Ad>isor CCLIAD. Ne< E4st ) Centr43 0on43 Offi2e o6ened 4t 64tin4 to 24terto t5e needs of st4tes of Bi54r: (54r=54nd 4nd Oriss4. . ne< Di>ision43 offi2es <ere 43so o6ened in *++1)+'. Pune D.O.<4s s63ited in * di>isions: >iI Pune Di>ision CiD 4nd Pune Di>ision CiiD.

Q!o3den (ubi3ee Found4tionsQ est4b3is5ed for undert4=in; 254rit4b3e 42ti>ities 3i=e edu24tion: 5e43t5: re3ief of 6o>erty et2.

Pe#78e>) M#'e- $#" Pe#78e>) !e8$a"e

LIC in>ested more t54n &&:G,+ 2rores: in infr4stru2ture se2tor is Rs..G:GH&2rores In so2i433y oriented se2tor 3i=e <4ter: dr4in4;e M 5ousin; et2: LIC 54s in>ested Rs..:G,. 2rores durin; *++1)+' M tot43 in>estment in t5is se2tor is Rs.,*:,*& 2rores.

 Tot43 in>estment in So2i43 Se2tor Rs.'H:+++ Crs. Different in2enti>e s25emes for >i334;es: S25oo3s 4nd B4n=s under Bim4 !r4m: Bim4 S25oo3 4nd Bim4 B4n=s.

Tot43 in>estment in N4tion Bui3din; A2ti>ities is .:1G:+++ Crs.

5&'a'c&a8 St"e'(th)
LICLs in>estment in2ome in *++1)+' <4s Rs.-+:G.. 2rores. Out of Tot43 in2ome of Rs: &:1G:..H.*' Crs. Tot43 Assets of t5e 2or6or4tion 4s on ,&.,.+1 <ere Rs. G:1-:.&-.1' Crs. L4r;est institution43 in>estor in S54re $4r=et. On 4n 4>er4;e Rs.&++ 2rore in>ested e>ery d4y. Durin; t5eye4r *++1 LIC e4rned t5e 6rofit Rs.&+:+++ Crs. from t5e S43e of EFuity. L4r;est Fin4n2i43 institution43 in>estor bot5 EFuity m4r=et M Term "ouse.

!ea+'e)) :
Its em63oyees 4nd ot5er st4ff 4re 3et54r;i2 4nd 3e4st moti>4ted to render 6rom6t 4nd sin2ere2ustomer ser>i2e. After s43es 2ustomer ;rie>4n2e redress43 me254nism is ineffi2ient. A;ents not t4=in; into 422ount t5e needs of 6eo63e 4nd 6romote 6o3i2ies 54>in;

5i;5 2ommissions on3y. /ery s3o< de2ision m4=in; 6ro2ess 4nd intern43 6rob3ems bet<een to6 m4n4;ement 4nd 3o<er 24dre st4ff. T5e to6 m4n4;ement or bosses 4re medio2re 4nd t5ere is 34r;e s243e 2orru6tion in m4in offi2e. T5e de>e3o6ment offi2ers 4nd 4;ents <5o 4re t5e found4tion 6i334rs of LIC 4re not 6ro>ided <it5 eAtr4 funds 4nd 6o<ers to 6romote its 6rodu2ts 4;;ressi>e3y.

O77#"t*'&t- :
Emer;en2e of 4 5u;e midd3e in2ome 2onsumer m4r=et in t5e 2ountry. Peo63e be2omin; more 4<4re 4nd dem4ndin; so t5ere is s2o6e for 4 <5o3e 3ot of inno>4ti>e6rodu2ts. Pension m4r=ets: 5e43t5 insur4n2e 4nd 34r;e re43 est4te 6ortfo3io.

Tod4y@s 5um4n 3ife be2omes fu33 un2ert4in: so t5ey 6refer 6rote2tion 4;4inst t5e ris=. T5erefore t5ey 6refer 3ife insur4n2e. T5is is t5e o66ortunity for t5e 3ife insur4n2e se2tor.

E4sy 422esses to de>e3o6ment in t5e more 4d>4n2e m4r=et 6ro>ide furt5er o66ortunity to u6;r4de t5eir <or=in;. Te25no3o;i243: fin4n2i43 or s6e2ifi2 4re4 b4sed 4>enues of 4bsorbin; im6ro>ed system 4re 43so no< more e4si3y 4>4i34b3e. So: t54t insur4n2e 2om64nies <or=in; effi2ient3y 4nd f4st ser>i2e. In2re4sed e2onomi2 42ti>ities: in2re4se in t5e e2onomi2 42ti>ity 54s be2ome t5e o66ortunity for t5e 3ife insur4n2e se2tor. T5e 42ti>ity su25 4s de>e3o6ment in t5e 4utomobi3e industry: de>e3o6ment in t5e s5i66in; industry. T5e ;ro<t5 in t5e !DP s5o<s t5e o66ortunity for t5is industry. T5e ;ro<t5 r4te eA6e2ted t5is ye4r 1)1..K. So t5is is 43so one of t5e o66ortunities for t5e 3ife insur4n2e se2tor. Un2o>ered m4r=et: T5e Indi4n insur4n2e m4r=et is t5e one of t5e 3e4st m4r=ets in t5e <or3d. Indi4 54s 4 6o6u34tion &+--.&. mi33ion out of <5i25 on3y 11.1 mi33ion 54>e 4 3ife insur4n2e 6o3i2y. A3most ,++ mi33ion 6eo63e in t5e 2ountry 24n 4fford to buy 3ife insur4n2e but of t5is on3y *+ K 54>e 4n insur4n2e 2o>er. T5us t5ere 3ies 4 bi; o66ortunity for t5e 3ife insur4n2e industry. No doubt 3ots of m4r=etin; 4nd 6romotion43 efforts 54>e to be done for tr466in; t5e un2o>ered 6ortion of t5e 5u;e m4r=et. Indi4@s insur4n2e 54s 3on; <4y to 24t25 u6 <it5 t5e rest of t5e <or3d. A22ordin; to t5e institute of 254rted fin4n2i43 4n43yst of Indi4. Indi4 is t5e *,rd 34r;est insur4n2e m4r=et in t5e <or3d.

Indi4 422ounts for 7ust +.-K of t5e ;3ob43 insur4n2e m4r=et <5i25 is >ery 3o<. t5e r4tio@s of 6remium to !DP for Indi4 st4nds 4t on3y ,K 4;4inst ..*K in US :G..Kin U . To enter into rur43 m4r=et <5ere 2ustomer 4<4reness 4bout insur4n2e is 3o< by effe2ti>e 4nd effi2ient m4r=etin; str4te;ies. To se33 insur4n2e 6rodu2ts t5rou;5 e3e2troni2 $edi4s. N4tur43 2434mities: n4tur43 2434mities t4=in; 6342e no< d4ys 54>e 2re4ted 4 2on2ern for 3ife insur4n2e 4mon; t5e 6ub3i2. Be24use of n4tur43 2434mities 3i=e e4rt5Fu4=e: f3ood: 4nd 2y23one 6eo63e 54>e be2ome 2ons2ious 4bout benefits 4nd need of insur4n2e. T5us t5rou;5 4 2434mity it 54s be2ome 4 2onsider4b3y bi; o66ortunity for t5e industry. !ro<in; 6o6u34tion: t5e ;ro<t5 in t5e 6o6u34tion C466roAim4te3y &.1KD is >ery 5i;5. It is s4id t54t one Austr43i4 is 4dded in our 2ountry e>ery ye4r. T5us 6otenti43 2ustomers for t5e 3ife insur4n2e industry. It 54s be2ome 4n o66ortunity for t5e 3ife insur4n2e industry. T5e 342= of 2om6re5ensi>e so2i43 se2urity system 2ombined <it5 4 <i33in;ness to s4>e me4ns t54t Indi4n 6eo63e dem4nd for 6ension 6rodu2ts <i33 be 34r;e. T5us: it 54s be2ome 4n o66ortunity for t5e 3ife insur4n2e industry. Indi4 54s tr4dition433y been 4 5i;53y s4>in;s oriented 2ountry. Need3ess to s4y: if t5e insur4n2e m4r=et is 6ro6er3y t466ed: it is 6ossib3e to r4ise 3ife insur4n2e 6remium 4s 4 6er2ent4;e of !DP from its eAistin; 3e>e3. T5us: it 54s be2ome 4n

o66ortunity for t5e 3ife insur4n2e industry. To use Internet 4nd e)2ommer2e te25no3o;ies to dr4m4ti2433y 2ut t5e 2osts 4ndRor to 6ursue ne< s43es);ro<t5 o66ortunities. ?it5 t5e 5e36 of te25no3o;y it 54s be2ome e4sy for t5e 2om64nies to re425 t5e 2ustomer Fui2=3y: e4si3y: effi2ient3y 4nd in 4 better <4y. A3so t5e 2om64nies 24n 2ut do<n t5e 2ost of o6er4tion u6 to 2onsider4b3e 3e>e3. T5us te25no3o;y 54s t5ro<n 3ots of o66ortunity for t5e 2om64ny. Liber43iIed ;o>ernment 6o3i2y to<4rd insur4n2e se2tor: t5e ;o>ernment 54s 3iber43iIed t5e ;o>ernment 6o3i2y in t5e 3ife insur4n2e se2tor. No< 4 d4y ro3e of ;o>ernment 54s 254n;ed. Due to 3iber43iIed 6o3i2y of ;o>ernment t5e 2ountry is benefited in e4rnin; forei;n inf3o<s: t5e domesti2 2om64ny 24n 43so 2o334bor4te <it5 forei;n 2ountry 4nd 24n 2re4te syner;y. T5us t5ere is ;re4t o66ortunity for t5ose <5o 24n tr46 it. EAist t5e o6tion of 7oint >entureM 433i4n2e et2. for 2om64nies to 2re4te Syner;y: >43ue 4s <e33 4s 2om6etiti>e 2464bi3ities for t5e firms.

Th"eat):
Pri>4te entr4nts 4re n4tur433y t4r;etin; t5e 6rofit4b3e 4nd more 3u2r4ti>e se;ments: by 6ro>idin; better ser>i2e: ne< 6rodu2ts 4nd f3eAibi3ity. T5ey 4re t4r;etin; t5e bi;;er 2or6or4te t5e ot5er 23ients in t5e <e33 est4b3is5ed metro6o3it4n 2enter. T5ese ne< entr4nts su22eeded in e4tin; s54re of t5e eAistin; entities. T5is 2re4tes t5re4t 4mon; ri>43 firms itse3f.

 De2re4sed in b4n= r4te: t5e de2re4sed b4n= r4te is t5e bi;;est t5re4t for t5e 3ife insur4n2e se2tor. F3u2tu4tion in t5e b4n= r4te m4=es bi; differen2e for t5e 3ife insur4n2e industry. It 54s be2ome t5re4ts for t5e 3ife insur4n2e industry.

Interest r4te of P.F 4nd b4n= s4>in; 2re4te t5re4t to insur4n2e se2tor. A33 ot5er s4>in; is ob>ious3y t5e t5re4t for 3ife insur4n2e se2tor.

In2re4sin; intensity of 2om6etition 4mon; industry ri>43s)m4y 24use sFueeIe Cf433D on 6rofit m4r;ins. Consumer@s edu24tion) 2onsumers 4re more 4nd more 2onfused be24use t5e m4r=et 634yers 4re offerin; 34r;e number of 6rodu2t r4n;e. As 4t 6resent t5e 4<4reness 3e>e3 is not mu25: it is on3y be24use t5e edu24tion 3e>e3 is on3y G* KC in <5i25 on3y &+K 4re <e33 edu24tedD. Fr4ud in insur4n2e se2tor: t5e m47or 6rob3em fr4ud: <5i25 4ffe2ts t5e 3ife insur4n2e se2tor. T5e f3i;5t of t43ent to ne< entr4nts is 43re4dy in e>iden2e: 4nd 2ou3d be on t5e rise for some time to 2ome. Ret4inin; Fu43ified 4nd 2om6etent eAe2uti>es <i33 be 2onsider4b3e 25433en;es for eAistin; 2om64nies. One >ery serious d4n;er t54t t5e ;o>ernment on units is 3i=e3y to f42e is t54t e>en if 4t some 6oint of time: t5e ;o>ernment does de2ide to disin>est 4 6ortion of its eFuityJ t5ey m4y not be fu33y free from ;o>ernment interferen2e. T5ey 2ou3d f42e 4 6e2u3i4r 6rob3em t54t 43t5ou;5 646er 4nd in terms of 3e;43 definition t5ey <ou3d

not be 6ub3i2 se2tor units. In effe2ts: t5eir <or=in; 2ou3d be no different from <54t it <4s before t5eir o<ners5i6 64ttern 254n;e. T5is 2ou3d be ;enuine t5re4ts sin2e t5ey <ou3d be 2om6etin; <it5 units <5i25 4re free from su25 4rtifi2i43 4nd unne2ess4ry restri2tions. T5e ne< units: eFui66ed <it5 st4te of 4rts eFui6ment 4nd inno>4ti>e 6ro2edure <ou3d 54>e 4n in)bui3t ed;e o>er t5e erst<5i3e 6ub3i2 se2tor units: <5i25 unti3 re2ent3y 54d no su25 o66ortunity 4nd in2enti>es. Due to 6ossib3e ne;4ti>e im642t on em63oyment: t5ere <ere no serious efforts 4t u6d4tin; te25no3o;y 4nd eFui6ment. T5e resu3t4nt in4deFu4te in>estment in infr4stru2ture 2ou3d 3e4d to t5eir 34;;in; be5ind in t5e r42e.

MARKET SEGMENT O5 LIC

The 7#8&c&e) #$ LIC c#/e") the a(e ("#*7 0-H0 ca' a/a&8 the )e"/&ce) #$ LIC% It .ea') LIC ha) /e"- /a)t .a"+et )e(.e't< ch&8,"e'< -#*'()te"< ;#"+&'(< .a""&e,< #8, 7e#78e% INS4RANCE PLANS A) &',&/&,*a8) &t &) &'he"e't t# ,&$$e"% Each &',&/&,*a8) &')*"a'ce 'ee,) a', "e9*&"e.e't) a"e ,&$$e"e't $"#. that #$ the #the")% LIC) I')*"a'ce P8a') a"e 7#8&c&e) that ta8+ t# -#* &',&/&,*a88- a', (&/e -#* the .#)t )*&ta:8e #7t&#') that ca' $&t -#*" "e9*&"e.e't%

Cee/a' A'*"a( CDA E',#;.e't Ve)t&'( At 21 CDA E',#;.e't Ve)t&'( At 1G Cee/a' K&)h#"e Ch&8, Ca"ee" P8a' Ch&8, 5#"t*'e P8*)

K#.a8 Cee/a' Ma""&a(e E',#;.e't O" E,*cat&#'a8 A''*&t- P8a' Cee/a' Chha-a Ch&8, 5*t*"e P8a'

Cee/a' Aa,ha" Cee/a' V&)h;a)

The E',#;.e't A))*"a'ce P#8&cThe E',#;.e't A))*"a'ce P#8&c--L&.&te, Pa-.e't Cee/a' M&t"aDD#*:8e C#/e" E',#;.e't P8a'F Cee/a' M&t"aDT"&78e C#/e" E',#;.e't P8a'F Cee/a' A'a', Ne; Ca'a"a+)ha P8a' Cee/a' A."&t

Cee/a' Sh"ee-I Cee/a' P"a.*+h

The M#'e- Bac+ P#8&c--20 2ea") The M#'e- Bac+ P#8&c--2J 2ea") Cee/a' S*"a:h&-1J 2ea") Cee/a' S*"a:h&-20 2ea") Cee/a' S*"a:h&-2J 2ea") B&.a Bachat

Cee/a' Bha"at& - I

The !h#8e L&$e P#8&cThe !h#8e L&$e P#8&c-- L&.&te, Pa-.e't The !h#8e L&$e P#8&c-- S&'(8e P"e.&*. Cee/a' A'a', Cee/a' Ta"a'(

T;# 2ea" Te.7#"a"- A))*"a'ce P#8&cThe C#'/e"t&:8e Te". A))*"a'ce P#8&cA'.#8 Cee/a'-I A.*8-a Cee/a'-I

Cee/a' Saath& P8*) Cee/a' Saath&

PENSION PLANS
Pe')&#' P8a') a"e I',&/&,*a8 P8a') that (a=e &'t# -#*" $*t*"e a', $#"e)ee $&'a'c&a8 )ta:&8&t- ,*"&'( -#*" #8, a(e% The)e 7#8&c&e) a"e .#)t )*&te, $#" )e'&#" c&t&=e') a', th#)e 78a''&'( a )ec*"e $*t*"e< )# that -#* 'e/e" (&/e *7 #' the :e)t th&'() &' 8&$e%

Cee/a' N&,h& Cee/a' A+)ha--VI Ne; Cee/a' Dha"a-I Ne; Cee/a' S*"a+)ha-I

4SP O5 T1E COMPAN2

54T4RE O5 T1E COMPAN2

5INDINGS AND CONCL4SIONS

5INDINGS 3 CONCL4SIONS:
SLIC is t5e ;i4nt of t5e insur4n2e se2tor. T5e o>er433 siIe of LIC is mu25 more t54n t54t of 433 6ri>4te insur4n2e 2om64nies. Pri>4te insurers 4re in eA64nsion mode 4nd

4re in2re4sin; t5eir siIe but 4re sti33 mu25 be5ind LIC. Tot43 6remium de6osits in LIC is mu25 5i;5er t54n t5e 6ri>4te insur4n2e 2om64nies. Tot43 6remium of LIC in F# +1)+' <4s &-H1'H 2rores <5i25 t5ree times more t54n t54t of 6ri>4te insur4n2e 2om64nies. SIn2ome of LIC is mu25 ;re4ter t54n 6ri>4te insur4n2e 2om64nies. L4st ye4r tot43 in2ome from in>estments of LIC <4s -'*--.&- 2rores <5i25 <4s ne4r3y eFu43 to t5e tot43 in2ome of t5e 433 6ri>4te insur4n2e 2om64nies. By t5is <e 24n im4;ine 5o< bi; t5e LIC is. SSiIe of b434n2e s5eet of 6ri>4te insur4n2e 2om64nies 4re 34;;in; mu25 be5ind LIC. B434n2e s5eet of LIC is se>en times bi;;er t54n t54t of 6ri>4te insur4n2e 2om64nies. SIf <e see t5e tot43 number of 6o3i2ies issued by LIC 4nd 6ri>4te insur4n2e 2om64nies: <e find t54t t5ere is 4 5u;e ;46 bet<een t5em. No doubt t54t LIC is 4 <e33 est4b3is5ed 634yer in t5e fie3d of insur4n2e 4nd m4ny 6ri>4te 2om64nies 54>e 7ust st4rted t5eir business. "en2e it is ob>ious t54t LIC is 54>in; 34r;e number of 6o3i2y5o3ders. SNumber of br4n25es of 6ri>4te insur4n2e 2om64nies is in2re4sin; 4s t5e ne< 634yers 4re enterin; in t5is m4r=et. A3so t5e est4b3is5ed 634yers 4re in eA64nsion 654se 4nd 5en2e 4re eA64ndin; t5ere business. T5ere 4re m4ny 6ri>4te insur4n2e 2om64nies 4nd 5en2e t5ere tot43 number of br4n25es 54s ;one 64st LIC in t5e 34st fin4n2i43 ye4r. But offi2es of 6ri>4te insur4n2e 2om64nies 4re most3y in urb4n 4re4s 4nd sti33 it is LIC <5i25 2o>ers most of t5e 4re4. 1e'ce ;e )ee that LIC &) 8ea,&'( ;he' &t c#.e) t# )&=e% It &) (&a't &' &')*"a'ce )ect#" ha/&'( h*(e 'et;#"+ a', c*)t#.e" :a)e%

S?e see t54t due to eA2e33ent ser>i2e Fu43ity 4nd 4ttr42ti>e offers 6ri>4te insur4n2e 2om64nies 54>e st4rted ;ettin; 4 number of 2ustomers. T5ey 4re ;ro<in; r46id3y. T5ou;5 LIC is 43so in2re4sin; its 2ustomer b4se but 6ri>4te insur4n2e 2om64nies 4re mo>in; 4t 4 f4st 642e. ST5ou;5 t5e in2ome of 6ri>4te insur4n2e 2om64nies is ne;3i;ib3e <5en 2om64red <it5 LIC but t5en 43so t5e 642e <it5 <5i25 t5ey 4re in2re4sin; t5eir in2ome is tremendous. Pri>4te insur4n2e 2om64nies 4re eA64ndin; t5eir business 4nd <i33 2ert4in3y ;oin; to ;i>e 4 tou;5 2om6etition to LIC in t5e 2omin; d4ys. SLIC is 2ert4in3y 54>in; 4 34r;e 2ustomer b4se. Pri>4te insur4n2e 2om64nies 4re not 54>in; t54t mu25 number of 2ustomer b4se but t5ey 4re in2re4sin; it r46id3y. T5ey 54>e re;istered 4 de2ent ;ro<t5 of &+-.G- K in number of ne< 6o3i2ies in t5e ye4r *++G)+1. L4st ye4r 43so t5eir ;ro<t5 r4te <4s G1.- K.
G-

SLIC: bein; t5e o3dest 634yer in t5e eAistin; insur4n2e m4r=et: 54s t5e bi;;est m4r=et s54re of 1,.H K <5i25 <4s '1.,K fi>e ye4rs e4r3ier. ?e see t54t 6ri>4te insur4n2e 2om64nies 4re 6enetr4tin; in t5e 2ustomer b4se of LIC. O/e"a88 ;e ca' )ee that 7"&/ate &')*"a'ce c#.7a'&e) a"e (&/&'( a t#*(h c#.7et&t&#' t# the LIC a', ;&88 ce"ta&'8- c"eate a (##, :*)&'e)) $#" the.)e8/e) &' the c#.&'( ,a-)% ST5ere 4re m4ny ne< entr4nts in t5is se2tor. T5ere 4re m4ny 6ri>4te insur4n2e 2om64nies <5o 54>e re6orted 3oss in t5is 4nd 6re>ious ye4rs. T5is is t5e m4in re4son <5y 6ri>4te insur4n2e 2om64nies 34; be5ind LIC in 24se of business 6er br4n25.

T5ere is 4 bi; differen2e bet<een t5em. SS4me is t5e 24se <5en it 2omes to in2ome 6er br4n25. LIC is mu25 45e4d of 6ri>4te insur4n2e 2om64nies in t5is fie3d. T5ey 4re undoubted 254m6ions in insur4n2e <5en it 2omes to 6rofit e4rnin;. SNe< business is in2re4sin;3y ;oin; to<4rds 6ri>4te insur4n2e 2om64nies but sti33 t5e 2ustomer b4se of LIC is >ery stron;. In issuin; ne< 6o3i2ies 6er br4n25 43so: t5ey 4re 45e4d of 6ri>4te insur4n2e 2om64nies t5ou;5 not by >ery 34r;e m4r;in. C*)t#.e" :a)e #$ LIC &) /e"- )t"#'( a', )t&88 :*)&'e)) 7e" :"a'ch< 7"#$&t 7e" :"a'ch #" 7"e.&*. 7e" :"a'ch< the- a"e 8ea,&'( .*ch ahea, #$ 7"&/ate &')*"a'ce c#.7a'&e)% SLIC 54s not s5o<n t5eir ;ood 2on2ern <5en t5e m4tter of ;rie>4n2e 54nd3in; 2omes. Pri>4te insur4n2e 2om64nies 4re f4r 45e4d in t5is m4tter. LIC 54s 7ust reso3>ed *.K 24ses in t5e 34st fi>e ye4rs <5i3e 6ri>4te insur4n2e 2om64nies 54>e reso3>ed ne4r3y 1+K 24ses. T5is is 4 m4tter from <5ere 2ustomer s5ift st4rts. ?e 54>e seen t5e r46id in2re4se in 2ustomer b4se of 6ri>4te insur4n2e 2om64nies <5i25 24n be >ery mu25 4ffe2ted by t5is f42tor. O/e"a88 ;e ha/e )ee' that )t&88 LIC &) /e"- $a.#*) :*t 7"&/ate &')*"a'ce c#.7a'&e) a"e ("#;&'( at e0ce7t&#'a88- $a)t 7ace% P"&/ate c#.7a'&e) )h#; ,*e c#'ce"' &' ("&e/a'ce .a'a(e.e't a', :"&'() &''#/at&/e )che.e) t# att"act the c*)t#.e")% R&(ht '#; thea"e (&/&'( (##, c#.7et&t&#' t# LIC a', /e"- )##' the- ;&88 (&/e /e"- t#*(h c#.7et&t&#' t# L&$e C#"7#"at&#' #$ I',&a%

GLOSSER2
Acc&,e't An e>ent or o22urren2e 24usin; d4m4;eRin7ury to 4n entity: 4nd is unforeseen 4nd unintended. Acc&,e't Be'e$&t Pro>ides for 64yment of 4n 4ddition43 benefit eFu43 to t5e sum sum 4ssured in inst43ments on 6erm4nent tot43 dis4bi3ity 4nd <4i>er of subseFuent 6remiums 64y4b3e under t5e 6o3i2y. A(e L&.&t) Sti6u34ted minimum 4nd m4Aimum 4;es be3o< 4nd 4bo>e <5i25 t5e 2om64ny <i33 not 422e6t 4663i24tions or m4y not rene< 6o3i2ies.

A(e't An insur4n2e 2om64ny re6resent4ti>e 3i2ensed by t5e st4te <5o so3i2its: ne;oti4tes or effe2ts 2ontr42ts of insur4n2e: 4nd 6ro>ides ser>i2e to t5e 6o3i2y5o3der for t5e insurer. A''*&t- P8a') T5ese 634ns 6ro>ide for 4 Q6ensionQ C or 4 miA of 4 3um6sum 4mount 4nd 4 6ension D to be 64id to t5e 6o3i2y 5o3der or 5is s6ouse. In t5e e>ent of de4t5 of bot5 of t5em durin; t5e 6o3i2y 6eriod: 4 3um6sum 4mount is 6ro>ided for t5e neAt of =in. A778&cat&#' 5#". Su663ied by t5e insur4n2e 2om64ny: usu433y fi33ed in by t5e 4;ent 4nd medi243 eA4miner Cif 4663i24b3eD on t5e b4sis of inform4tion re2ei>ed from t5e 4663i24nt. It is si;ned by t5e 4663i24nt 4nd is 64rt of t5e insur4n2e 6o3i2y if it is issued. A))&('.e't Assi;nment me4ns 3e;43 tr4nsferen2e. A met5od by <5i25 t5e 6o3i2y 5o3der 24n 6erson on 5is interest to 4not5er 6erson. An 4ssi;nment 24n be m4de by 4n endorsement on t5e 6o3i2y do2ument or 4s 4 se6er4te deed. Assi;nment 24n be of t<o ty6es Condition43 4bso3ute

Be'e$&c&a"T5e 6ersonCsD or entityCiesD Ce.;. 2or6or4tion: trust: et2.D n4med in t5e 6o3i2y 4s t5e re2i6ient of insur4n2e 6ro2eeds u6on t5e de4t5 of t5e insured. B*)&'e)) I')*"a'ce A 6o3i2y <5i25 6rim4ri3y 6ro>ides 2o>er4;e of benefits to 4 business 4s 2ontr4sted to 4n indi>idu43. It is issued to indemnify 4 business for t5e 3oss of ser>i2es of 4 =ey em63oyee or 4 64rtner <5o be2omes dis4b3ed.

Ca'ce8a:8e A 2ontr42t of 5e43t5 insur4n2e t54t m4y be 24n2e33ed durin; t5e 6o3i2y term by t5e insurer or insured. C#&')*"a'ce &D A 6ro>ision under <5i25 4n insured <5o 24rries 3ess t54n t5e sti6u34ted 6er2ent4;e of insur4n2e to >43ue: <i33 re2ei>e 4 3oss 64yment t54t is 3imited to t5e s4me r4tio <5i25 t5e 4mount of insur4n2e be4rs to t5e 4mount reFuiredJ *D 4 6o3i2y 6ro>ision freFuent3y found in medi243 insur4n2e: by <5i25 t5e insured 6erson 4nd t5e insurer s54re t5e 2o>ered 3osses under 4 6o3i2y in 4 s6e2ified r4tio: i.e.: '+ 6er 2ent by t5e insurer 4nd *+ 6er 2ent by t5e insured. C#'/e"t&:8e !h#8e L&$e P#8&cA miA of Q<5o3e 3ife 6o3i2yQ 4nd Qendo<ment 6o3i2yQ: it 6ro>ides for >ery 3o< insur4n2e 6remiums <it5 m4Aimum ris= 2o>er <5i3e t5e 3ife 4ssured is 7ust be;innin; 5is <or=in; 24reer: 4nd t5e 6ossibi3iy of 2on>ertin; t5e 6o3i2y to 4n Qendo<mentQ 6o3i2y 4fter fi>e ye4rs of 2ommen2ement. C#/e"a(e T5e s2o6e of 6rote2tion 6ro>ided under 4 2ontr42t of insur4n2eJ 4ny of se>er43 ris=s 2o>ered by 4 6o3i2y.

Da-) O$ G"ace Po3i2y 5o3ders 4re eA6e2ted to 46y 6remium on due d4tes. 4 6eriod is &.),+ d4ys is 433o<ed 4s ;r42e to m4=e 64yment of 6remiumJ su25 6eriod is d4ys of ;r42e. De$e".e't Pe"&#, Period bet<een t5e d4te of subs2ri6tion to 4n insur4n2e)2um)6ension 6o3i2y 4nd t5e time 4t <5i25 t5e first inst43ment of 6ension is re2ei>ed. Su25 6o3i2ies ;ener433y 6res2ribe 4 minimum 4nd m4Aimum 3imit on t5e deferment 6eriod.

De7"ec&at&#' A de2re4se in t5e >43ue of 6ro6erty o>er 4 6eriod of time due to <e4r 4nd te4r or obso3es2en2e. De6re2i4tion is used to determine t5e 42tu43 24s5 >43ue of 6ro6erty 4t time of 3oss. D#*:8e/T"&78e C#/e" P8a') T5ese offer to t5e benefi2i4ries doub3eRtri63e t5e sum 4ssured on de4t5 of 3ife 4ssured durin; t5e term of t5e 6o3i2y. On sur>i>43 to t5e d4te of m4turity: t5e b4si2 sum 4ssured is 64id to t5e 4ssured. T5ese 4re 3o<)6remium 634ns: most usefu3 for situ4tions su25 4s 5ousin;.

E.:e==8e.e't Fr4udu3ent use or t4=in; of 4not5erLs 6ro6erty or money <5i25 54s been entrusted to oneLs 24re. E',#;.e't P#8&cT5e 4ssured 54s to 64y 4n 4nnu43 6remium <5i25 is determined on t5e b4sis of t5e 4ssuredLs 4;e 4t entry 4nd t5e term of t5e 6o3i2y. T5e insured 4mount is 64y4b3e eit5er 4t t5e end of s6e2ified number of ye4rs or u6on t5e de4t5 of t5e insured 6erson: <5i25e>er is e4r3ier. E0ce)) A', S*"78*) I')*"a'ce &D Insur4n2e to 2o>er 3osses 4bo>e 4 2ert4in 4mount: <it5 3osses be3o< t54t 4mount usu433y 2o>ered by 4 re;u34r 6o3i2y. C*D Insur4n2e to 2o>er 4n unusu43 or one)time ris=: e.;.: d4m4;e to 4 musi2i4nLs 54nds or t5e mu3ti63e 6eri3s of 4 2on>ention: for <5i25 2o>er4;e is un4>4i34b3e in t5e norm43 m4r=et. E0c8*)&#') S6e2ifi2 2onditions or 2ir2umst4n2es for <5i25 t5e 6o3i2y <i33 not 6ro>ide benefits.

5ac*8tat&/e Re&')*"a'ce A ty6e of reinsur4n2e in <5i25 t5e reinsurer 24n 422e6t or re7e2t 4ny ris= 6resented by

4n insur4n2e 2om64ny see=in; reinsur4n2e. 5a.&8- I')*"a'ce. A 3ife insur4n2e 6o3i2y 6ro>idin; insur4n2e on 433 or se>er43 f4mi3y members in one 2ontr42t: ;ener433y <5o3e 3ife insur4n2e on t5e 6rin2i643 bre4d<inner 4nd sm433 4mounts of term insur4n2e on t5e ot5er s6ouse 4nd 25i3dren: in23udin; t5ose born 4fter t5e 6o3i2y is issued 5&,*c&a"A 6erson <5o 5o3ds somet5in; in trust for 4not5er. 5&"e I')*"a'ce Co>er4;e for 3osses 24used by fire 4nd 3i;5tnin;: 63us resu3t4nt d4m4;e 24used by smo=e 4nd <4ter. F3ood insur4n2e Co>er4;e 4;4inst 3oss resu3tin; from t5e f3ood 6eri3: 4>4i34b3e 4t 3o< 2ost under 4 6ro;r4mme de>e3o6ed by t5e Centr43 ;o>ernment. 5"a'ch&)e I')*"a'ce A form of insur4n2e in <5i25 indi>idu43 6o3i2ies 4re issued to t5e em63oyees of 4 2ommon em63oyer or t5e members of 4n 4sso2i4tion under 4n 4rr4n;ement by <5i25 t5e em63oyer or 4sso2i4tion 4;rees to 2o33e2t t5e 6remium 4nd remit t5em to t5e insurer.

G*a"a'tee, I')*"a'ce S*. DGISF A 3um6 sum 6ur254se 6ri2e is ;i>en to 6ur254se future 6ensions under t5e (ee>4n A=s54y P34n of Life Insur4n2e Cor6or4tion of Indi4. T5is 4mount is referred to 4s !IS. T5e mont53y 6ension t54t is 64y4b3e one mont5 4fter 64yment of first 6remium is 2432u34ted on t5e b4sis of t5e 4;e 4t entry. G"#)) I')*"a'ce Va8*e E8e.e't DGIVEF T5e 4mount 64y4b3e on t5e deferred d4te under (ee>4n D54r4 Life of Life Insur4n2e Cor6or4tion of Indi4. An 4nnutiy of &K of t5e !I/E is 64y4b3e 6er mont5 4fter t5e deferment 6eriod. And t5e entire !I/E is 64y4b3e on de4t5 4fter deferment 6eriod. G"#*7 L&$e I')*"a'ce Life insur4n2e usu433y <it5out medi243 eA4min4tion: on 4 ;rou6 of 6eo63e under 4 m4ster 6o3i2y. It is ty6i2433y issued to 4n em63oyer for t5e benefit of em63oyees: or to members of 4n 4sso2i4tion: for eA4m63e 4 6rofession43 members5i6 ;rou6. T5e

indi>idu43 members of t5e ;rou6 5o3d 2ertifi24tes 4s e>iden2e of t5eir insur4n2e G*a"a'tee, P#8&c&e) T5ese 4re 6o3i2ies <5ere t5e 64yment st4ys fiAed.

I',e.'&tLe;43 6rin2i63e t54t s6e2ifies 4n insured s5ou3d not 2o33e2t more t54n t5e 42tu43 24s5 >43ue of 4 3oss but s5ou3d be restored to 466roAim4te3y t5e s4me fin4n2i43 6osition 4s eAisted before t5e 3oss. I')*"a:8e I'te"e)t A 2ondition in <5i25 t5e 6erson 4663yin; for insur4n2e 4nd t5e 6erson <5o is to re2ei>e t5e 6o3i2y benefit <i33 suffer 4n emotion43 or fin4n2i43 3oss: if 4ny untou25ed e>ent o22urs. ?it5out insur4b3e interest: 4n insur4n2e 2ontr42t is in>43id. I')*"a:&8&tA33 2onditions 6ert4inin; to indi>idu43s t54t 4ffe2t t5eir 5e43t5: sus2e6tibi3ity to in7ury 4nd 3ife eA6e2t4n2yJ 4n indi>idu43Ls ris= 6rofi3e. I')*"a'ce So2i43 de>i2e for minimiIin; ris= of un2ert4inty re;4rdin; 3oss by s6re4din; t5e ris= o>er 4 34r;e enou;5 number of simi34r eA6osures to 6redi2t t5e indi>idu43 254n2e of 3oss. I')*"e, T5e 6erson <5ose 3ife is 2o>ered by 4 6o3i2y of insur4n2e.

C#&'t L&$e E',#;.e't A))*"a'ce P8a') T5e sum 4ssured C 63us 4ny 422rued bonusesD under t5is ty6e of 6o3i2y is 64y4b3e on t5e end of t5e endo<ment term or on t5e first de4t5 of t5e t<o 3i>es 4ssured: <5i25e>er is e4r3ier. Ty6i2433y Ct5ou;5 not 4 ne2essityD t4=en out by 4 2ou63e: 4 >4ri4tion is 4>4i34b3e for 2ou63es on3y. In t5is 24se: t5e sum 4ssured <i33 be 64y4b3e on first de4t5 4nd t5en 4;4in on t5e se2ond de4t5 C43on; <it5 433 >ested bonusesD if bot5 de4t5s o22ur durin; t5e term of t5e 6o3i2y. If one or bot5 3i>es sur>i>e to t5e m4turity

d4te: t5e sum 4ssured 43on; <it5 433 >ested bonuses <i33 be 64y4b3e on m4turity d4te. Premiums durin; t5is 634n 2e4se on t5e first de4t5 or t5e eA6iry of t5e se3e2ted term: <5i25e>er is e4r3ier. Anot5er >4ri4tion 6ro>ides for 4nnuity to bot5Rsur>i>in; s6ouse: or 4 3um6sum 4mount to t5e 3e;43 5eirs.

Ke-.a' I')*"a'ce P#8&cA 3ife insur4n2e 6o3i2y t4=en by 4 6erson on t5e 3ife of 4not5er 6erson <5o is or <4s 5is em63oyeeR2onne2ted to 5is business in 4ny m4nner <54tsoe>er.

La7)e, P#8&cA 6o3i2y <5i25 54s termin4ted 4nd is no 3on;er in for2e due to non)64yment of t5e 6remium due L&.&te, Pa-.e't L&$e P#8&cPremiums need to be 64id on3y for 4 2ert4in number of ye4rs or unti3 de4t5 if it o22urs <it5in t5is 6eriod. Pro2eeds of t5e 6o3i2y 4re ;r4nted to t5e benefi2i4ries <5ene>er de4t5 of t5e 6o3i2y 5o3der o22urs. A;4in: t5is 6o3i2y 24n 43so be of t5e Q<it5 6rofits Q or Q<it5out 6rofitsQ ty6e. L#-a8t- A,,&t&#') T5e 3oy43ty 4ddition is ;i>en u6on t5e m4turity of t5e 6o3i2y: 4nd not before. ItLs 4 sm433 6er2ent4;e of t5e sum 4ssured. Bro4d3y s6e4=in;: 3oy43ty 4ddition is t5e differen2e bet<een t5e 6erform4n2e: of t5e insur4n2e 2om64ny 4nd t5e ;u4r4nteed 4dditions. It is LICs effort to furt5er s54re its sur63us 4fter >43u4tion <it5 t5e 6o3i2y 5o3ders: 4s LIC is 4 non)6rofit or;4niI4tion. L&$e A))*"e, T5e 6erson <5ose 3ife is insured by 4n indi>idu43 3ife 6o3i2y is 2433ed 3ife 4ssured.

Mat*"&tT5e d4te u6on <5i25 t5e f42e 4mount of 4 3ife insur4n2e 6o3i2y : if not 6re>ious3y in>o=ed due to t5e 2ontin;en2y 2o>ered Cde4t5D: is 64id to t5e 6o3i2y5o3der. Mat*"&t- C8a&. T5e P4yment to t5e 6o3i2y 5o3der 4t t5e end of t5e sti6u34ted term of t5e 6o3i2y is 2433ed m4turity 234im. M&)"e7"e)e'tat&#' A2t of m4=in;: issuin;: 2ir2u34tin; or 24usin; to be issued or 2ir2u34ted 4n estim4te: 4n i33ustr4tion: 4 2ir2u34r or 4 st4tement of 4ny =ind t54t does not re6resent t5e 2orre2t 6o3i2y terms: di>idends or s54re of sur63us or t5e n4me or tit3e for 4ny 6o3i2y or 234ss of 6o3i2ies t54t does not in f42t ref3e2t its true n4ture. M#'e- Bac+ P#8&cUn3i=e endo<ment 634ns: in money b42= 6o3i2ies: t5e 6o3i2y 5o3der ;ets 6eriodi2 Qsur>i>4n2e 64ymentsQ durin; t5e term of t5e 6o3i2y 4nd 4 3um6sum 4mount on sur>i>in; its term. In t5e e>ent of de4t5 durin; t5e term of t5e 6o3i2y: t5e benefi2i4ry ;ets t5e fu33 sum 4ssured: <it5out 4ny dedu2tions for t5e 4mounts 64id ti33 d4te: 4nd no furt5er 6remiums 4re reFuired to be 64id.T5ese ty6e of 6o3i2ies 4re >ery 6o6u34r: sin2e t5ey 24n be t4i3ored to ;et 34r;e 4mounts 4t s6e2ifi2 6eriods 4s 6er t5e needs of t5e 6o3i2y 5o3der. M#"a8 1a=a", Ris= de6ends on t5e need for insur4n2e: st4te of 5e43t5: 6erson43 54bits st4nd4rd of 3i>in; 4nd in2ome of insured 6eson. $or43 54I4rd is t5e ris= f42tors t54t 4ffe2ts t5e de2esion of t5e insur4n2e 2om64ny to 422e6t t5e ris=.

N#.&'at&#' An 42t by <5i25 t5e 6o3i2y 5o3ders 4ut5orises 4not5er 6erson to re2ei>e t5e 6o3i2y moneys. T5e 6erson so 4ut5orised is 2433ed Nominee. N#'-ca'ce8a:8e 7#8&c&e) Su25 6o3i2ies st4y in effe2t re;4rd3ess of <54te>er t54t mi;5t 5466en 4nd 4s 3on; 4s t5e 6remium is 64id from time to time

P"e.&*. T5e 64yment: or one of t5e re;u34r 6eriodi2 64yments: t54t 4 6o3i2y 5o3der m4=es to 4n insurer in eA254n;e for t5e insurerLs ob3i;4tion to 64y benefits u6on t5e o22urren2e of t5e 2ontr42tu433y)s6e2ified 2ontin;en2y Ce.;.: de4t5D. P"e.&*. Bac+ Te". I')*"a'ce P8a') T5ese 6ro>ide for refund of 433 t5e 6remiums 64id: in t5e e>ent of t5 3ife 4ssured sur>i>in; to t5e end of t5e 6o3i2y term. T5e tot43 sum 4ssured is 64id to t5e benefi2i4ries in t5e e>ent de4t5 o22urs durin; t5e 6o3i2y term.

Re&')tate.e't T5e restor4tion of 4 346sed 6o3i2y to in)for2e st4tus. Reinst4tement 24n on3y o22ur 4fter t5e eA6ir4tion of t5e ;r42e 6eriod. T5e 2om64ny m4y reFuire e>iden2e of insur4bi3ity C4nd: if 5e43t5 st4tus 54s 254n;ed: deny reinst4tementD: 4nd <i33 43<4ys reFuire 64yment of t5e tot43 4mount of 64st due 6remium. R&)+ T5e ob3i;4tion 4ssumed by t5e insurer <5en it issues 4 6o3i2y. T5e s6re4din; of ris= 42ross 4 bro4d b4se of t5e 6o6u34tion: 4d7usted for st4tisti243 6rob4bi3ity: 4nd t5e 6rote2tion 4;4inst 24t4stro65i2 3oss: is t5e entire 6ur6ose of insur4n2e. For ris= 4ssum6tion 6ur6oses: de4t5 is >ie<ed 4s 4 2ontin;en2y. T54t is: 43t5ou;5 de4t5 is 2ert4in: its timin; is un=no<n. T5e 6ro2ess of e>43u4tin; 4nd se3e2tin; ris= is =no<n 4s under<ritin;.

Sa8a"- Sa/&'( Sche.e T5is s25eme 6ro>ides for 64yment of 6remiums by money dedu2tion from t5e s434ry of t5e em63oyees by one em63oyer.

S*: Sta',a", R&)+ Person <5o is 2onsidered 4n under)4>er4;e or im64ired insur4n2e ris= be24use of 65ysi243 2ondition: f4mi3y or 6erson43 5istory of dise4se: o22u64tion: residen2e in un5e43t5y 23im4te or d4n;erous 54bits. S*""e',e" Va8*e T5e >43ue 64y4b3e to t5e 6o3i2y 5o3der in t5e e>ent of 5is de2idin; to termin4te t5e 6o3i2y before t5e m4turity of t5e 6o3i2y. S*"/&/a8 Be'e$&t T5e 64yment of sum 4ssured to t5e in2ured 6erson <5i25 54s be2ome due by inst43ments under 4 money b42= 6o3i2y.

Ve)t&'( A(e T5e 4;e 4t <5i25 t5e re2ei6t of 6ension st4rts in 4n insur4n2e)2um)6ension 634n.

!h#8e L&$e P#8&cPremiums 4re 64id t5rou;5out t5e 3ife time of 3ife 4ssured . T5is 24n be <it5 6rofits or <it5out 6rofits C A Q<it5 6rofitQ 6o3i2y is e3i;ib3e for >4rious bonuses de234red by LIC e>ery ye4r: <5i3e 4 Q<it5out 6rofitsQ 6o3i2y does not 54>e t5is 6ri>i3e;e D !&th-P"#$&t 7#8&cPo3i2ies entit3ed to bonus: <5i25 is 64id 4t t5e time of 234im)de4t5 or m4turity one <it5)6rofit 6o3i2ies. !&th#*t-P"#$&t 7#8&cT5ese 6o3i2ies 4re not entit3ed to 64rti2i46te in bonuses.

RE5RENCES
SD4t4 on Indi4n Insur4n2e from 5tt6:RR<<<.ird4indi4.or; SDifferent st4tisti2s from 5tt6:RR<<<.rbi.or;.in S(ourn43s 6ub3is5ed by Insur4n2e Re;u34tory M De>e3o6ment Aut5ority. S$4n4;ement of fin4n2i43 institutions by R.$. Sri>4st4>4 S5tt6:RR<<<.businesstod4y.2om S5tt6:RR<<<.business<or3d.2om S5tt6:RR<<<.e2onomi2times.2om SDifferent Sur>ey on Insur4n2e se2tor 2ondu2ted by IIRC. SProfi3e of Indi4n Insur4n2e Com64nies by IRDA. S<<<.3i2indi4.2o.in <<<.sbi3ife.2o.inR S <<<.t4t4)4i;)3ife.2om S <<<.b54rti)4A43ife.2omR S <<<.5df2insur4n2e.2omR S <<<.re3i4n2e3ife.2o.inR S <<<.b4747433i4nI.2omR S S<<<.met3ife.2o.inR S<<<.bir34sun3ife.2omR

5tt6:RR<<<.fin4n2e.indi4m4rt.2om S