Lic
Content
NAME OF COLLEGE : GURUKUL COLLEGE OF COMMERCE. ADDRESS : TILAK ROAD, GHATKOPAR (E), MUMBAI – 400077.
SUBJECT NAME : FINANCIAL SYSTEM. A PROJECT ON : 7/9/2009. SUBMITTED TO : PROF. JANVI RAO. SUBMITTED BY : VORA . MONICK . J. KOTHARI . VISHAL . G. DEDHIYA . DARPAN . K. RATNANI . HIREN . D. KATTA . NIKHIL . H. STANDARD : F.Y.B.B.I. SIGNATURE :
ACKNOWLEDGEMENT
ANY ATTEMPT AT ANY LEVEL CANNOT BE SATISFACTORILY COMPLETED WITHOUT THE SUPPORT AND GUIDANCE OF LEARNED PEOPLE.WE WOULD LIKE TO EXPRESS OUR IMMENSE GRATITUDE TO CO-ORDINATOR ( BANKING & INSURANCE ) PROF.RESMA KHAN . FOR HER CONSTANT SUPPORT AND MOTIVATION THAT HAS ENCOURAGED US TO COME UP WITH THIS PROJECT.
WE ARE ALSO THANKFUL TO ALL OTHER MEMBERS PRINCIPAL,TEACHERS & FRIENDS WHO HAVE RENDERED THEIR WHOLE HERATED SUPPORT AT ALL TIMES FOR THE SUCCESSFUL COMPLETION OF THIS PROJECT.
INDEX
SR.NO 1 2 3 4
5 6 7
TOPICS CHEPTER-1
OBJECCTIVE
COMPARISION LIFE INSURANCE & DEATH INSURANCE
SIGN
HISTORY NATIONALIZATION VARIOUS TYPES OF LIFE INSURANCE
SR.NO
NAME CHAPTER-1
PG.NO
1
INTRODUCTION
RESEACH AND MATHODOLOGY OBJCTIVE SCOPE CHAPETR-2
2
MENING OF LIFE INSURANCE HISTROY FEATURES CHAPTER-3
3
PRODUCT LIFE CYCLE WHY HAVE WE SELECTED THIS PROJET CHEPTER-4
4
COMPARISON CHAPETR-5
SR.NO
NAME CHAPTER-1
PG.NO
1
INTRODUCTION RESEACH AND MATHODOLOGY OBJCTIVE SCOPE CHAPETR-2
2
MENING OF LIFE INSURANCE
HISTROY FEATURES CHAPTER-3
SR.NO 1
NAME CHAPTER-1 INTRODUCTION RESEACH AND MATHODOLOGY OBJCTIVE SCOPE CHAPETR-2
PG.NO
2
MENING OF LIFE INSURANCE
HISTROY FEATURES CHAPTER-3
3
PRODUCT LIFE CYCLE WHY HAVE WE SELECTED THIS
INTRODUCTION
As with most insurance policies, life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designated beneficiaries if an insured event occurs which is covered by the policy. The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the 'peace of mind' experienced by the policyholder, due to the negating of adverse financial consequences caused by the death of the Life Assured. To be a life policy the insured event must be based upon the lives of the people named in the policy.
As with most insurance policies, life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designated beneficiaries if an insured event occurs which is covered by the policy. The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the 'peace of mind' experienced by the policyholder, due to the negating of adverse financial consequences caused by the death of the Life Assured. To be a life policy the insured event must be based upon the lives of the people named in the policy.
What Is Life Insurance?
Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during: The date of maturity, or Specified dates at periodic intervals, or Unfortunate death, if it occurs earlier. Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilisation's partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person: That of dying prematurely leaving a dependent family to fend for itself. That of living till old age without visible means of support.
Mission "Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."
Vision "A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."
OTHER LIFE INSURANCE
OBJECCTIVE
Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable person in the country and providing then adequate financial cover again death at a reasonable cost. Maximize mobilization of people’s saving by making insurance-linked saving adequately attractive. Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in tryst, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return. Conduct business with utmost economy and with the full realization that the moneys belong to the policy holders.
SR.NO
NAME CHAPTER-1
PG.NO
1
INTRODUCTION RESEACH AND MATHODOLOGY OBJCTIVE SCOPE CHAPETR-2
2
MENING OF LIFE INSURANCE
HISTROY FEATURES CHAPTER-3
ACKNOWLEDGEMENT
ANY ATTEMPT AT ANY LEVEL CANNOT BE SATISFACTORILY COMPLETED WITHOUT THE SUPPORT AND GUIDANCE OF LEARNED PEOPLE.WE WOULD LIKE TO EXPRESS OUR IMMENSE GRATITUDE TO CO-ORDINATOR ( BANKING & INSURANCE ) PROF.RESMA KHAN . FOR HER CONSTANT SUPPORT AND MOTIVATION THAT HAS ENCOURAGED US TO COME UP WITH THIS PROJECT.
WE ARE ALSO THANKFUL TO ALL OTHER MEMBERS PRINCIPAL,TEACHERS & FRIENDS WHO HAVE RENDERED THEIR WHOLE HERATED SUPPORT AT ALL TIMES FOR THE SUCCESSFUL COMPLETION OF THIS PROJECT.
RESEACH AND METHODLOGY
• • • Considering the project due to the enomity of the topic of the topic there is very limited scope For primary data Hence most the data is collected from seondery source Secondery soruce most of data of the project is collected from different secondery sources which are various books,various wepsites ,news papers & magazins
SR.NO
NAME CHAPTER-1
PG.NO
1
INTRODUCTION RESEACH AND MATHODOLOGY OBJCTIVE SCOPE CHAPETR-2
2
MENING OF LIFE INSURANCE
HISTROY FEATURES CHAPTER-3
RESEACH AND METHODLOGY
• • • Considering the project due to the enomity of the topic of the topic there is very limited scope For primary data Hence most the data is collected from seondery source Secondery soruce most of data of the project is collected from different secondery sources which are various books,various wepsites ,news papers & magazins
RESEACH AND METHODLOGY
• • • Considering the project due to the enomity of the topic of the topic there is very limited scope For primary data Hence most the data is collected from seondery source Secondery soruce most of data of the project is collected from different secondery sources which are various books,various wepsites ,news papers & magazins
Act as trustees of the insured public in their individual and collective capacities. Meet the various life insurance needs of the community that would arise in the changing Social and Economic environment. Involve all people working in the Corporation to the best of their Capacity in furthering the interest of the insured public by providing efficient service with courtesy. Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.
COMPARISION LIFE INSURANCE & DEATH INSURANCE "I don't need life insurance; I've got death in service with my job." You've probably heard this before, however death in service which is provided by your employer and life insurance which is available from an insurer such as us, differs greatly. For instance, life insurance can be tailored to meet your needs, whereas death in service has more structure and often can't be adapted. We'd like to point out the main differences between the two products.
DEATH INSURANCE
V/S LIFE INSURANCE
Death in service pays out a lump sum, if you die whilst employed by a company that provides this benefit as part of your overall employment package. Death in service is a scheme normally offered free of charge, as part of the benefit package from your employer. If you leave the company and don't have alternative cover, your family could be at risk. Death in service is normally three or four times your annual salary.
Our minimum premium is just £6 per month. Your actual premium depends on your needs and circumstance. If you want to leave the benefits to a specific person known as a beneficiary, you can place your policy in an absolute trust. Life insurance can be tailored to cover your needs. You could choose an amount to help your family maintain their standard of living, or help to make sure the mortgage on the family home is repaid.
HISTORY
The Oriental Life Insurance company, the first Corporate entity in India offering life insurance coverage, was established in Calcutta in 1818 by BIPIN BEHARI DASGUPTA & others. The Bombay Mutual Life Assurance Society, formed in 1870, was the first native insurance provider. other insurance companies established in the pre-independence era included Bart Insurance Company (1896) United India (1906) National India (1906) National Insurance (1906) Co-operative Assurance (1906) Hindustan Co-operative (1907) Indian Mercantile
1. 2. 3. 4. 5. 6. 7.
General Assurance 9. Swadeshi Life (later Bombay life) The LIFE INSURANCE Act and the Provident Funds Act were passed in 1912, Providing the first regulatory machanisms in the life insurance industry. The Indian insurance companies Act of 1928 Authorized the government to obtain statistical information from companies operating in both life and non-life insurance areas. A bill was also introduced in the Legislative Assembly in 1944 to nationalize the insurance industry.
8.
NATIONALIZATION
IN 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by owners of private insurance companies. Ram Kishan dalmia, owner of the Times of India newspaper, was sent to prison for two years. The parliament of india passed the life insurance if India Act on 19th jun1956, and the life insurance corporation of india was created on 1st sep1956. The LIC company began operations with 5 zonal offices, 33 divisional offices and 212 branch offices.
Various Types of Life Insurance
Life Insurance Concepts There are two primary categories of life insurance: term and permanent. However, there are several different types within each category. Listed below are some of the most common types. Consult your life insurance professional for a more detailed description of the various types of life insurance and how they may apply to your specific situation.
Term Insurance - Life insurance under which the death benefit is payable only if the insured dies during a specified period.
Listed below are various types of term insurance.
Level Term - a fixed amount of coverage with premiums that are fixed over a certain period of time, usually in 10-year increments.
Increasing/Decreasing Term - amount of coverage increases or decreases throughout the term, premiums typically remain level. Convertible Term - gives the policyholder the right to convert the term policy to a permanent policy. Group Term - insurance purchased typically by an employer or professional association that is intended to cover several people, usually resulting in reduced premiums
Permanent Insurance - Life insurance that provides coverage throughout the insured's lifetime and may include an element that builds cash value. Indexed Universal Life - a form of permanent life insurance that combines the premium and death benefit flexibility of universal life insurance under which the cash value's current crediting rate is tied to the performance of a financial index. Most policies offer guarantees that if the index is negative, the crediting rate will not go below zero. Traditional Whole Life - remains in force during the insured's entire lifetime, provided premiums are paid as specified in the policy. Whole life insurance may also include an element for accumulating growth (called "cash value").
Universal life insurance - characterized by its flexible premiums, flexible face amounts, and unbundled pricing factors.
The Life Insurance Corporation of India (Hindi: भारतीय जीवन बीमा ननगम) (LIC) is the largest life insurance company in India and also the country's largest investor.; it is fully owned by the Government of India. It also funds close to 24.6% of the Indian Government's expenses.It has assets estimated of 5 Trillion Rupees. It was founded in 1956. Headquartered in Mumbai, which is considered the financial capital of India, the Life Insurance Corporation of India currently has 8 zonal Offices and 101 divisional offices located in different parts of India, at least 2048 branches located in different cities and towns of India along with satellite Offices attached to about some 50 Branches, and has a network of around 1.2 million agents [1] for soliciting life insurance business from the public, Today LIC can boast of great achievements in IT and investment under able Chairmanship of T S Vijayan. After years of poor performance despite near monopoly, LIC started showing performance under G N Bajpai and again went into slip under succeeding chairman till T S Vijayan took over. He faded G N Bajpai into oblivion ably supported by HR initiatives taken by another Genius K B Saha despite serious internal war by MDs. People criticise LIC about large scale miss selling and holes in investment but nobody criticises LIC's superb HR initiatives under sharpest ever HR ED K B Saha and IT initiatives directly under T S Vijayan, the tallest of the Chairmen of LIC.
People LIC is one of the largest employers in India. The organization is headed by 4 officers, namely the Chairman and three Managing Directors. The top brass is appointed by the Government of India after an intensive selection procedure. Though the company was accused to go by mere seniority in number of years for the selection of the senior management, this has changed as seen in the case of Thomas Mathew and A. Dasgupta (Managing Directors). The Chairman assumes authority of the CEO and chairs the board while the Managing Directors are allotted the three main categories of the organization's functioning. The current Chairman, Mr. T.S. Vijayan, is particularly responsible for the major IT infrastructure turnaround that the organization has witnessed and for its advanced EDMS structure. D.K. Mehrotra manages the Marketing Units of LIC, which also happens to be one of the largest spenders on advertising in India. Thomas Mathew manages the close to $187 billion investment portfolio of the company, which is the largest investor in the country. A. Dasgupta manages the engineering and other functions, many of which are very advanced in the Indian corporate scenario.
TECHNOLOGY USAGE
LIC has been one of the pioneering organizations in India who introduced the leverage of Information Technology in servicing and in their business. Data pertaining to almost 10 crore policies is being held on computers in LIC. We have gone in for relevant and appropriate technology over the years. 1964 saw the introduction of computers in LIC. Unit Record Machines introduced in late 1950’s were phased out in 1980’s and replaced by Microprocessors based computers in Branch and Divisional Offices for Back Office Computerization. Standardization of Hardware and Software commenced in 1990’s. Standard Computer Packages were developed and implemented for Ordinary and Salary Savings Scheme (SSS) Policies.
The insurance giant opted for internet services for all its subscribers and developed massive networking for own usage and internal governance. While the pros and cons of internal networking remains concealed within the officials and hidden for the common customers, the customer portal somehow fails to satisfy the 21st century customers. Apparently, low bandwidth, unwise web page hyper linking, illogical page set ups, all just contribute to the irritation of common net age customers. The portal gives opportunity to register any policy to be tagged up with any one. As a matter of fact, if Mr. 'A' knows the policy number and premium value of certain policy 'X' of Mr. 'B,' 'A' can tag up 'X' with his own Profile in LICI portal and get all the details of the policy. Moreover, though the organization is officially known as Life Insurance Corporation of India, abbreviated, LICI, the portal welcomes a customer to LIC. As a result of all these, online payment of premium through the site could not be a popular option for the customers. The site fails to show the details of all its recognized agents in its Agent locator section.It has a great significance in today's life. jkk
The services for the last forty years have concentrated on deterring military conflict and the `big' war on the plains of Europe. That focus has worked; we have avoided both. But what we have failed to deter is low intensity conflict . . . And the strategic thinkers tell us that this is the most likely form of conflict for the rest of this century. Thus, we are well prepared for the least likely conflicts and poorly prepared for the most likely." . Additionally, LIC presents a bewildering array of unique and challenging training requirements. Many of these requirements will diametrically oppose training the unit for conventional operations. The tendency to take the expedient approach and focus on the far right of the LIC spectrum, Peacetime Contingency Operations and conduct training as usual, while briefing that the LIC block has been checked, will lead us to a possibly fatal false sense of security. Instinctive behavior and ingrained training must be adjusted to fit new circumstances. STXs must be developed locally or borrowed from units who have already been through the training. The probability of becoming involved in a LIC operation is high. The potential to attract international attention, even with limited forces, is also great. Units have demonstrated that with a balanced training focus and proper preparation, many pitfalls outlined above can be avoided
"
CONCLUSION
This booklet should provide you with much of the basic information you need to make an informed decision about buying life insurance. But, of course, you should explore your specific needs further and discuss options with your producer as you move closer to a final decision about your life insurance purchase. By learning about the product, your needs and price differences, you will have gone a long way toward meeting your own insurance requirements. It will take time and patience on your part, but as an educated consumer you can make a wise decision about buying life insurance.
BIBLIOGRAPHY
SITE : 1) WWW.GOOGLE.COM 2) WWW LIC .COM
GUIDE : TEACHERS & FRIENDS.
SUBJECT NAME : FINANCIAL SYSTEM. A PROJECT ON : 7/9/2009. SUBMITTED TO : PROF. JANVI RAO. SUBMITTED BY : VORA . MONICK . J. KOTHARI . VISHAL . G. DEDHIYA . DARPAN . K. RATNANI . HIREN . D. KATTA . NIKHIL . H. STANDARD : F.Y.B.B.I. SIGNATURE :
ACKNOWLEDGEMENT
ANY ATTEMPT AT ANY LEVEL CANNOT BE SATISFACTORILY COMPLETED WITHOUT THE SUPPORT AND GUIDANCE OF LEARNED PEOPLE.WE WOULD LIKE TO EXPRESS OUR IMMENSE GRATITUDE TO CO-ORDINATOR ( BANKING & INSURANCE ) PROF.RESMA KHAN . FOR HER CONSTANT SUPPORT AND MOTIVATION THAT HAS ENCOURAGED US TO COME UP WITH THIS PROJECT.
WE ARE ALSO THANKFUL TO ALL OTHER MEMBERS PRINCIPAL,TEACHERS & FRIENDS WHO HAVE RENDERED THEIR WHOLE HERATED SUPPORT AT ALL TIMES FOR THE SUCCESSFUL COMPLETION OF THIS PROJECT.
INDEX
SR.NO 1 2 3 4
5 6 7
TOPICS CHEPTER-1
OBJECCTIVE
COMPARISION LIFE INSURANCE & DEATH INSURANCE
SIGN
HISTORY NATIONALIZATION VARIOUS TYPES OF LIFE INSURANCE
SR.NO
NAME CHAPTER-1
PG.NO
1
INTRODUCTION
RESEACH AND MATHODOLOGY OBJCTIVE SCOPE CHAPETR-2
2
MENING OF LIFE INSURANCE HISTROY FEATURES CHAPTER-3
3
PRODUCT LIFE CYCLE WHY HAVE WE SELECTED THIS PROJET CHEPTER-4
4
COMPARISON CHAPETR-5
SR.NO
NAME CHAPTER-1
PG.NO
1
INTRODUCTION RESEACH AND MATHODOLOGY OBJCTIVE SCOPE CHAPETR-2
2
MENING OF LIFE INSURANCE
HISTROY FEATURES CHAPTER-3
SR.NO 1
NAME CHAPTER-1 INTRODUCTION RESEACH AND MATHODOLOGY OBJCTIVE SCOPE CHAPETR-2
PG.NO
2
MENING OF LIFE INSURANCE
HISTROY FEATURES CHAPTER-3
3
PRODUCT LIFE CYCLE WHY HAVE WE SELECTED THIS
INTRODUCTION
As with most insurance policies, life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designated beneficiaries if an insured event occurs which is covered by the policy. The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the 'peace of mind' experienced by the policyholder, due to the negating of adverse financial consequences caused by the death of the Life Assured. To be a life policy the insured event must be based upon the lives of the people named in the policy.
As with most insurance policies, life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designated beneficiaries if an insured event occurs which is covered by the policy. The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the 'peace of mind' experienced by the policyholder, due to the negating of adverse financial consequences caused by the death of the Life Assured. To be a life policy the insured event must be based upon the lives of the people named in the policy.
What Is Life Insurance?
Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during: The date of maturity, or Specified dates at periodic intervals, or Unfortunate death, if it occurs earlier. Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilisation's partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person: That of dying prematurely leaving a dependent family to fend for itself. That of living till old age without visible means of support.
Mission "Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."
Vision "A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."
OTHER LIFE INSURANCE
OBJECCTIVE
Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable person in the country and providing then adequate financial cover again death at a reasonable cost. Maximize mobilization of people’s saving by making insurance-linked saving adequately attractive. Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in tryst, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return. Conduct business with utmost economy and with the full realization that the moneys belong to the policy holders.
SR.NO
NAME CHAPTER-1
PG.NO
1
INTRODUCTION RESEACH AND MATHODOLOGY OBJCTIVE SCOPE CHAPETR-2
2
MENING OF LIFE INSURANCE
HISTROY FEATURES CHAPTER-3
ACKNOWLEDGEMENT
ANY ATTEMPT AT ANY LEVEL CANNOT BE SATISFACTORILY COMPLETED WITHOUT THE SUPPORT AND GUIDANCE OF LEARNED PEOPLE.WE WOULD LIKE TO EXPRESS OUR IMMENSE GRATITUDE TO CO-ORDINATOR ( BANKING & INSURANCE ) PROF.RESMA KHAN . FOR HER CONSTANT SUPPORT AND MOTIVATION THAT HAS ENCOURAGED US TO COME UP WITH THIS PROJECT.
WE ARE ALSO THANKFUL TO ALL OTHER MEMBERS PRINCIPAL,TEACHERS & FRIENDS WHO HAVE RENDERED THEIR WHOLE HERATED SUPPORT AT ALL TIMES FOR THE SUCCESSFUL COMPLETION OF THIS PROJECT.
RESEACH AND METHODLOGY
• • • Considering the project due to the enomity of the topic of the topic there is very limited scope For primary data Hence most the data is collected from seondery source Secondery soruce most of data of the project is collected from different secondery sources which are various books,various wepsites ,news papers & magazins
SR.NO
NAME CHAPTER-1
PG.NO
1
INTRODUCTION RESEACH AND MATHODOLOGY OBJCTIVE SCOPE CHAPETR-2
2
MENING OF LIFE INSURANCE
HISTROY FEATURES CHAPTER-3
RESEACH AND METHODLOGY
• • • Considering the project due to the enomity of the topic of the topic there is very limited scope For primary data Hence most the data is collected from seondery source Secondery soruce most of data of the project is collected from different secondery sources which are various books,various wepsites ,news papers & magazins
RESEACH AND METHODLOGY
• • • Considering the project due to the enomity of the topic of the topic there is very limited scope For primary data Hence most the data is collected from seondery source Secondery soruce most of data of the project is collected from different secondery sources which are various books,various wepsites ,news papers & magazins
Act as trustees of the insured public in their individual and collective capacities. Meet the various life insurance needs of the community that would arise in the changing Social and Economic environment. Involve all people working in the Corporation to the best of their Capacity in furthering the interest of the insured public by providing efficient service with courtesy. Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.
COMPARISION LIFE INSURANCE & DEATH INSURANCE "I don't need life insurance; I've got death in service with my job." You've probably heard this before, however death in service which is provided by your employer and life insurance which is available from an insurer such as us, differs greatly. For instance, life insurance can be tailored to meet your needs, whereas death in service has more structure and often can't be adapted. We'd like to point out the main differences between the two products.
DEATH INSURANCE
V/S LIFE INSURANCE
Death in service pays out a lump sum, if you die whilst employed by a company that provides this benefit as part of your overall employment package. Death in service is a scheme normally offered free of charge, as part of the benefit package from your employer. If you leave the company and don't have alternative cover, your family could be at risk. Death in service is normally three or four times your annual salary.
Our minimum premium is just £6 per month. Your actual premium depends on your needs and circumstance. If you want to leave the benefits to a specific person known as a beneficiary, you can place your policy in an absolute trust. Life insurance can be tailored to cover your needs. You could choose an amount to help your family maintain their standard of living, or help to make sure the mortgage on the family home is repaid.
HISTORY
The Oriental Life Insurance company, the first Corporate entity in India offering life insurance coverage, was established in Calcutta in 1818 by BIPIN BEHARI DASGUPTA & others. The Bombay Mutual Life Assurance Society, formed in 1870, was the first native insurance provider. other insurance companies established in the pre-independence era included Bart Insurance Company (1896) United India (1906) National India (1906) National Insurance (1906) Co-operative Assurance (1906) Hindustan Co-operative (1907) Indian Mercantile
1. 2. 3. 4. 5. 6. 7.
General Assurance 9. Swadeshi Life (later Bombay life) The LIFE INSURANCE Act and the Provident Funds Act were passed in 1912, Providing the first regulatory machanisms in the life insurance industry. The Indian insurance companies Act of 1928 Authorized the government to obtain statistical information from companies operating in both life and non-life insurance areas. A bill was also introduced in the Legislative Assembly in 1944 to nationalize the insurance industry.
8.
NATIONALIZATION
IN 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by owners of private insurance companies. Ram Kishan dalmia, owner of the Times of India newspaper, was sent to prison for two years. The parliament of india passed the life insurance if India Act on 19th jun1956, and the life insurance corporation of india was created on 1st sep1956. The LIC company began operations with 5 zonal offices, 33 divisional offices and 212 branch offices.
Various Types of Life Insurance
Life Insurance Concepts There are two primary categories of life insurance: term and permanent. However, there are several different types within each category. Listed below are some of the most common types. Consult your life insurance professional for a more detailed description of the various types of life insurance and how they may apply to your specific situation.
Term Insurance - Life insurance under which the death benefit is payable only if the insured dies during a specified period.
Listed below are various types of term insurance.
Level Term - a fixed amount of coverage with premiums that are fixed over a certain period of time, usually in 10-year increments.
Increasing/Decreasing Term - amount of coverage increases or decreases throughout the term, premiums typically remain level. Convertible Term - gives the policyholder the right to convert the term policy to a permanent policy. Group Term - insurance purchased typically by an employer or professional association that is intended to cover several people, usually resulting in reduced premiums
Permanent Insurance - Life insurance that provides coverage throughout the insured's lifetime and may include an element that builds cash value. Indexed Universal Life - a form of permanent life insurance that combines the premium and death benefit flexibility of universal life insurance under which the cash value's current crediting rate is tied to the performance of a financial index. Most policies offer guarantees that if the index is negative, the crediting rate will not go below zero. Traditional Whole Life - remains in force during the insured's entire lifetime, provided premiums are paid as specified in the policy. Whole life insurance may also include an element for accumulating growth (called "cash value").
Universal life insurance - characterized by its flexible premiums, flexible face amounts, and unbundled pricing factors.
The Life Insurance Corporation of India (Hindi: भारतीय जीवन बीमा ननगम) (LIC) is the largest life insurance company in India and also the country's largest investor.; it is fully owned by the Government of India. It also funds close to 24.6% of the Indian Government's expenses.It has assets estimated of 5 Trillion Rupees. It was founded in 1956. Headquartered in Mumbai, which is considered the financial capital of India, the Life Insurance Corporation of India currently has 8 zonal Offices and 101 divisional offices located in different parts of India, at least 2048 branches located in different cities and towns of India along with satellite Offices attached to about some 50 Branches, and has a network of around 1.2 million agents [1] for soliciting life insurance business from the public, Today LIC can boast of great achievements in IT and investment under able Chairmanship of T S Vijayan. After years of poor performance despite near monopoly, LIC started showing performance under G N Bajpai and again went into slip under succeeding chairman till T S Vijayan took over. He faded G N Bajpai into oblivion ably supported by HR initiatives taken by another Genius K B Saha despite serious internal war by MDs. People criticise LIC about large scale miss selling and holes in investment but nobody criticises LIC's superb HR initiatives under sharpest ever HR ED K B Saha and IT initiatives directly under T S Vijayan, the tallest of the Chairmen of LIC.
People LIC is one of the largest employers in India. The organization is headed by 4 officers, namely the Chairman and three Managing Directors. The top brass is appointed by the Government of India after an intensive selection procedure. Though the company was accused to go by mere seniority in number of years for the selection of the senior management, this has changed as seen in the case of Thomas Mathew and A. Dasgupta (Managing Directors). The Chairman assumes authority of the CEO and chairs the board while the Managing Directors are allotted the three main categories of the organization's functioning. The current Chairman, Mr. T.S. Vijayan, is particularly responsible for the major IT infrastructure turnaround that the organization has witnessed and for its advanced EDMS structure. D.K. Mehrotra manages the Marketing Units of LIC, which also happens to be one of the largest spenders on advertising in India. Thomas Mathew manages the close to $187 billion investment portfolio of the company, which is the largest investor in the country. A. Dasgupta manages the engineering and other functions, many of which are very advanced in the Indian corporate scenario.
TECHNOLOGY USAGE
LIC has been one of the pioneering organizations in India who introduced the leverage of Information Technology in servicing and in their business. Data pertaining to almost 10 crore policies is being held on computers in LIC. We have gone in for relevant and appropriate technology over the years. 1964 saw the introduction of computers in LIC. Unit Record Machines introduced in late 1950’s were phased out in 1980’s and replaced by Microprocessors based computers in Branch and Divisional Offices for Back Office Computerization. Standardization of Hardware and Software commenced in 1990’s. Standard Computer Packages were developed and implemented for Ordinary and Salary Savings Scheme (SSS) Policies.
The insurance giant opted for internet services for all its subscribers and developed massive networking for own usage and internal governance. While the pros and cons of internal networking remains concealed within the officials and hidden for the common customers, the customer portal somehow fails to satisfy the 21st century customers. Apparently, low bandwidth, unwise web page hyper linking, illogical page set ups, all just contribute to the irritation of common net age customers. The portal gives opportunity to register any policy to be tagged up with any one. As a matter of fact, if Mr. 'A' knows the policy number and premium value of certain policy 'X' of Mr. 'B,' 'A' can tag up 'X' with his own Profile in LICI portal and get all the details of the policy. Moreover, though the organization is officially known as Life Insurance Corporation of India, abbreviated, LICI, the portal welcomes a customer to LIC. As a result of all these, online payment of premium through the site could not be a popular option for the customers. The site fails to show the details of all its recognized agents in its Agent locator section.It has a great significance in today's life. jkk
The services for the last forty years have concentrated on deterring military conflict and the `big' war on the plains of Europe. That focus has worked; we have avoided both. But what we have failed to deter is low intensity conflict . . . And the strategic thinkers tell us that this is the most likely form of conflict for the rest of this century. Thus, we are well prepared for the least likely conflicts and poorly prepared for the most likely." . Additionally, LIC presents a bewildering array of unique and challenging training requirements. Many of these requirements will diametrically oppose training the unit for conventional operations. The tendency to take the expedient approach and focus on the far right of the LIC spectrum, Peacetime Contingency Operations and conduct training as usual, while briefing that the LIC block has been checked, will lead us to a possibly fatal false sense of security. Instinctive behavior and ingrained training must be adjusted to fit new circumstances. STXs must be developed locally or borrowed from units who have already been through the training. The probability of becoming involved in a LIC operation is high. The potential to attract international attention, even with limited forces, is also great. Units have demonstrated that with a balanced training focus and proper preparation, many pitfalls outlined above can be avoided
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CONCLUSION
This booklet should provide you with much of the basic information you need to make an informed decision about buying life insurance. But, of course, you should explore your specific needs further and discuss options with your producer as you move closer to a final decision about your life insurance purchase. By learning about the product, your needs and price differences, you will have gone a long way toward meeting your own insurance requirements. It will take time and patience on your part, but as an educated consumer you can make a wise decision about buying life insurance.
BIBLIOGRAPHY
SITE : 1) WWW.GOOGLE.COM 2) WWW LIC .COM
GUIDE : TEACHERS & FRIENDS.
