Month: December 2012
BEWARE! LIC POLICYHOLDERS! BEWARE!
Lots of misleading telephonic calls are going to LIC policyholders regarding their LIC policies. In these calls, policyholders are told to stop/ surrender their policies in the mid of the term of the policy and new policies are being offered to them by making false commitment to the policyholders.
LIC of India has also given notification in the Times of India to aware its policyholders. Please find the details of the advertisement given below:
Every one wants to buy the best term insurance but on which factors one must decide which term plan is best. Some ads in TV says, did you compare the premium of the term plans or some people says that IRDA has permitted life insurance companies so definitely all term plans will be good, so which one should really take?
1. Death Claim ratio: One should buy the not only term plan but any kind of life insurance from the company which has the best claim ratio. (What is death claim ratio? It is the number of policies, whose claims are settled out of every 100).What is the benefit of taking term insurance from a company whose claim ratio is less than 95%, It means your family is still not sure whether they will get claim or not so it is always better not to take insurance than buying term insurance from a company whose claim ratio is less than 95%.
LIC OF INDIA has the highest claim ratio 97% so in case death claim ratio is the criteria then LIC OF INDIA must be your first choice. Please find the figures attached at the bottom of this article.
2. Term Insurance period: Normally one should have adequate life insurance till the time he is not free from his responsibilities like kid’s education, kid’s marriage, spouse pension etc. Any term plan which provides cover less than 65 or 70yrs of age, I really don’t think will be beneficially and if one get term insurance which covers you till 80yrs of age that will be awesome. (what is the use of taking a term plan which ends before you fulfill your responsibilities?)
LIC OF INDIA provides term insurance coverage till 70yrs of age and if it is mixed with one of its best plan it will cover you till whole life.
3. Premium: All life insurance companies are here to earn not to distribute money in crores for the claims. There is rule for term insurance i.e. higher the term, higher the premium for the term plan will be. (Did you ever check the term of the life insurers who are offering term insurance at a very lesser premium?)
Premium is bit higher in LIC but its plans are unmatchable. Contact us to get the best term plan of the life insurance industry. Get maturity equal to the insurance cover in the same premium.
4. Claim settlement procedure: You are smart & intelligent as you are comparing which term insurance to take and which not but are your dependents equally smart for taking claim? Try to find out how the claims are settled in a life insurance company? People are buying term insurance online but do they ever enquire from which branch has been assigned to them or to which branch their nominee should contact in case of death of the policyholder? What documents are required during the settlement of claims, whether the nominee be able to produce those at that time?
Click here to know how claims are settled in LIC?
5. Exclusions: Most of the life insurance companies are in collaboration and they are here to earn not to do the charity by the way of settling claims, these companies always have hidden clauses or exclusions, which prevent their profit to come down. Natural calamity like Tsunami or earth quake, war, suicide, death occurred in bomb blast or terrorists activities etc are some of those. Do you consider these points while buying term insurance? In Delhi every fortnight there is mock drill going on, what if you die in earth quake? BUT this is not the case with LIC OF INDIA. Please see the attachment how LIC OF INDIA relaxed the claim settlement procedure in Bomb Blast in 2008.
LIC to relax norms for claim settlements of Tsunami affected in 2004 Click here to read more……
6. Reputation of the company – there is no definition or cannot be easily explained as it depends on 2 factors working style/financial health of the company & your past experience. So it is very subjective & changes with the time but still will be considered to increase your confidence.
No doubt LIC OF INDIA has life fund of Rs 12,00,00,00,00,00,000 (12lakh crores)
If you still feel that premium of LIC TERM PLAN is higher but it is reliable then the best option will be, divide the life insurance cover into 2 parts which you are planning to take and buy 1 part from wherever you want and the other from LIC OF INDIA because LIC says ” JINDAGI KE SAATH BHI, JINDAGI KE BAAD BHI”
LIC has launched LIC’s Flexi Plus (Plan No.811) with effect from 2nd January,
2013. The Unique Identification Number (UIN) for LIC’s Flexi Plus plan is 512L272V01.
LIC’s Flexi Plus is a unit linked assurance plan, which not only provides a lump sum benefit on death but also the maturity benefit irrespective of the survival of the Policyholder. The policyholder can choose the amount of premium he/she desires to pay, depending on which policyholder will get the equivalent level of cover.
a) Benefits payable on death:
In case of death of the Life Assured within the policy term, when the cover is in full force, payment of all future premiums due under the policy are not required to be paid and: Immediate lump sum payment equal to Sum Assured shall be paid to the nominee /
• An amount equal to sum of all future premiums payable after the date of death shall be credited to the Policyholder’s Fund. The units shall be allocated at the NAV applicable for the fund type opted for under the policy as at the date of booking of liability of death. The liability shall be booked immediately on the date of receipt of intimation along with death certificate.On maturity date, units available in the Policyholder’s Fund will be multiplied by the NAV as on that date and the total fund value will be given to the nominee/legal heir.
b) Benefits payable on maturity:
On Life Assured surviving the date of maturity, an amount equal to the Policyholder’s Fund
Value is payable.
INVESTMENT FUND TYPES:
Unit Fund: The premiums allocated to purchase units will be invested according to the investment pattern prescribed for different fund types. The types of fund and their investment pattern are as under:
Discontinued Policy Fund: The investment pattern of the Discontinued Policy Fund shall be
the same as that is being currently followed under non-linked Individual business.
CHARGES AND FREQUENCY OF CHARGES:
I Premium Allocation Charge: This is the percentage of the premium appropriated towards charges from the premium received. The balance known as allocation rate constitutes that part of the premium which is utilized to purchase (Investment) units for the policy.
The allocation charges are as below:
II Mortality Charge: This is the cost of life cover, which includes Sum assured and all future
premiums payable under the plan. This charge shall depend upon the Sum at Risk i.e. sum of Sum Assured and total amount of all future premiums payable under the policy as on the date of deduction of mortality charge.
Sum Assured is (10 * annualized premium) or (105% of all the premiums paid including
any premiums which have fallen due but not paid), whichever is higher.
Mortality Charge will be taken every month by canceling appropriate number of units out of
the Policyholder’s Fund Value. This charge will be deducted till the Life Assured is alive.
Mortality charge, during a policy year, will be based on the age nearer birthday of the Policyholder as at the policy anniversary coinciding with or immediately preceding the due date of cancellation of units and hence may increase every year on each policy anniversary. Further, the charges will also depend on the underwriting decision at entry or subsequent revival of the policy.
III Other Charges:
a) POLICY ADMINISTRATION CHARGE – This charge shall be deducted on monthly basis by canceling appropriate number of units out of Policyholder’s Fund Value.
The Policy Administration Charge per month shall be as follows:
Policy Year Policy Admin Charge (per month)
1st Year Rs. 50
2nd Year Rs. 41.20
3rd Year Rs. 42.44
4th Year Rs. 43.71
5th Year Rs. 45.02
6th Year & Thereafter Rs. 34.78 in 6th year escalating at 3% p.a. thereafter No Policy Administration Charge shall be deducted after death of the Life Assured.
No Policy Administration Charge shall be deducted after death of the Life Assured.
b) FUND MANAGEMENT CHARGE – Fund Management Charges (FMC) are dependent on type of Fund and are deductible on the date of computation of NAV at the following rates:
0.50% p.a. of Unit Fund for “Debt” Fund
0.60% p.a. of Unit Fund for “Mixed” Fund
The NAV, thus declared, will be net of FMC.
No Fund Management Charge shall be deducted on Discontinued Policy fund.
c) SWITCHING CHARGE – This is a charge levied on switching of monies from one fund to another. This charge will be levied at the time of effecting switch at the rate specified in Para 10 (A) below.
d) BID/OFFER SPREAD – Nil.
e) DISCONTINUANCE CHARGES –This charge will be levied by canceling appropriate no. of units out of policyholder fund value on the date of surrender/date of discontinuance of policy. The discontinuance charge applicable is as under:
f) SERVICE TAX CHARGE – A service tax charge, if any, will be as per the prevailing service tax laws and rate of service tax as applicable from time to time. The instructions regarding service tax will be issued by Finance & Accounts Department, Central Office, separately.
g) MISCELLANEOUS CHARGE – This is a charge levied for an alteration within the contract, such as change in premium mode to higher frequency and shall be a flat amount of Rs. 50/- which will be deducted by canceling appropriate number of units out of the Policyholder’s Fund Value and the deduction shall be made on the date of alteration in the policy. The alteration will be effective from the policy anniversary coincident with or following the alteration. The Corporation reserves the right to accept or decline an alteration in the policy. The alteration shall take effect from the policy anniversary coincident with or following the alteration only after the same is approved by the Corporation and is specifically communicated in writing to the policyholder.
DISCONTINUANCE OF PREMIUMS:
If premiums under the policy have not been paid within the days of grace, a notice shall be sent to the policyholder within a period of fifteen days from the date of expiry of grace period to exercise one of the following options within a period of thirty days of receipt of such notice:
a) Revival of the policy, or
b) Complete withdrawal from the policy
Up to the expiry of 30 days of receipt of notice, the policy shall be treated as inforce and the Mortality charge as specified in Para3 (II) and other charges as specified in Para 3(III) shall be taken, as usual, by cancelling appropriate number of units out of the Policyholder’s Fund Value. Insurance cover shall continue till the date of discontinuance of the policy (i.e. till the date on which the intimation is received from the policyholder for complete withdrawal of the policy or till the expiry of the notice period).
The benefits payable under the policy upto the expiry of 30 days of receipt of notice shall be same as that under an inforce policy, except Partial Withdrawal, which shall not be allowed if all due premiums have not been paid. The benefits payable when the policyholder exercises the option for complete withdrawal or does not exercise any option during the notice period shall be as under:
A) If the policy is discontinued within 5 years from the date of commencement of the policy: If
policyholder exercises the option for complete withdrawal from the policy, or does not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated. The Policyholder’s Fund Value as on the date of discontinuance after deducting the discontinuance charge as specified in Para 3(III)(e) shall be converted into monetary terms as specified in Para 7(a) below and shall be transferred to the Discontinued Policy Fund. However, the policyholder shall have the right to revive such policy within two years from the date of discontinuance but not later than the expiry of 5 years from the date of commencement of policy. On revival of policy, all benefits, as per the terms and conditions of the policy, shall continue to the Policyholder from the date of revival. In case the policy is not revived, then the Proceeds of the Discontinued Policy as specified in Para 7(b) below shall be paid after completion of 5 years from the date of commencement of policy. In case of death of the Life Assured before the completion of 5 years from the date of commencement of the policy, the Proceeds of the Discontinued Policy shall be paid to the nominee / legal heir immediately.
B) If the policy is discontinued after 5 years from the date of commencement of the policy: If policyholder exercises the option for complete withdrawal from the policy, or does not exercise the option within the period of 30 days of receipt of notice, then the policy shall be compulsorily terminated and Policyholder’s Fund Value shall be payable.
METHOD OF CALCULATION OF MONETARY AMOUNT AND PROCEEDS OF THE
a) The conversion to monetary amount shall be as under:
The NAV on the date of application for surrender or as on the date of discontinuance of the policy (in case of complete withdrawal of the policy), as the case may be, multiplied by the number of units in the Policyholder’s Fund Value as on that date will be the monetary amount.
b) The Proceeds of the discontinued policy shall be calculated as under:
The monetary amount calculated as above shall be transferred to the Discontinued Policy Fund. This Fund will earn a minimum guarantee of the interest rate, as applicable to saving bank account of State Bank of India from the date of discontinuance of the policy to the date of completion of 5 years from the commencement of the policy or upto the date of revival, if applicable. In case of death of the Life Assured after discontinuance of policy but before completion of 5 policy years, the interest shall accrue from the date of discontinuance of the policy to the date of booking of liability. The Proceeds of the discontinued policy shall be the monetary amount plus the interest accrued on the Discontinued Policy Fund.
LIC’s New Pension Plan LIC JEEVAN NIDHI is expected to launch on 24th December 2012. It is a deferred pension plan from LIC.
Life Cover: There will be life insurance cover in this plan up to the vesting date of the policy.
Guaranteed Addition: Bonus is guaranteed Rs 50/1000 of basic sum assured for 1st five years and then reversionary bonus every year after fifth year.
Mode: Single premium, Yearly, Half yearly, Quarterly and Monthly (ECS/SSS)
1) If Death occurs with in first 5 years of starting LIC JEEVAN NIDHI, Sum assured along with guaranteed accrued bonus will be paid
2) If Death occurs after 5 years, Sum assured, Guaranteed bonus and vested reversionary bonus*1 and final additional bonus*2.
1) Pension: Option to purchase pension on maturity
2) Reinvest: Maturity proceed can be reinvested into single premium deferred pension plan.
Back dating – Allowed within same Financial year.
Revival – A policy may be revived within a period of 5 years from the date of First Unpaid premium and before the date of vesting by payment of Arrears of premium plus Interest and subject to continued insurability.
Surrender-The policy can be surrendered at any time on payment of at least 3 years’ premiums and after completion of at least 3 policy years but before the date on which annuity vests. The Surrender Value payable shall be the higher of Guaranteed Surrendered Value and Special Surrender Value. The Surrender proceeds shall be utilized to purchase an immediate annuity product or a new Single Premium deferred pension product from LIC.
*1: Reversionary Bonus shall be added from the 6th policy year onwards till the end of the deferment period and at such rates as may be declared by the Corporation.
*2:Final Additional Bonus shall be payable either on vesting or on earlier death at the rates declared by the Corporation.
Where in Delhi, one can apply for Driving license?
Transport Department of Delhi Government has opened its zonal office at 13 different locations. you can license of light and medium category license for driving vehicle from any of these zonal offices.
1. Rajpur road
2. IP Estate
3. Shekh Sarai
4. Janak puri,
5. Loni Road
6. Sarai Kale Khan
8. Mayur Vihar
9. Ashok Vihar
10. Maal Road
11. Suraj mal Vihar
13. Raja Garden
Public Dealing timings
Monday to Friday- 8:30am to 1:00pm
Saturday- 8:30am to 11:00am
All zonal offices will remain close on Sunday, 2nd Saturday and on all government holiday.
Delhi Government has provided online option to get appointment and make the payment online for Delhiites.
There are Express service and regular services available under online facility
Under the Express service, you will get appointment at zonal office on the day you apply for online appointment, whereas under normal service you will get appointment for any next day. If you apply third day of week i.e. Monday then you will get appointment the day after Wednesday.
Timings for applying for DL under Express Service
Timings is the most important factor for applying under Express Service. If you have applied after public dealing hours then you will get appointment for the next day but if you have applied early morning then you can get appointment for the same day.
To get the benefit of Express Service or Normal Service, you have to make E-payment.
Call Center Facility
In case you don’t have internet facility, you can appointment by calling at 9311900800 . In this case E-payment in not required, the day you get the appointment on the same day you have deposit the fee at the zonal office.
Call center employees will get your details and then issue you a reference number
You will get appointment of any day for next week under call center service
On the appointment day, you have to visit the concerned zonal center, along with all necessary documents and have to deposit the fees as per the reference number.
Learning License is the first step, if you are going for Driving License.
You can collect Driving license form free of cost from the zonal office.
Click on the life side of the Website of transport department www.transport.delhigovt.nic.in
Then click on Learning License
Now download the form no. 4,6 & 7 under the heading Documents valid for proof of citizenship in the newly opened window.
Fees for learning license is Rs30 per category
Means if you are making DL for driving only two wheelers in that case the fee will be Rs 30 only.
And in case you want to apply for four wheelers along with two wheelers then you have to pay Rs 60 altogether.
To get the Learning License, you have to take up a online test at the zonal center.
In this test there will ten objective type questions related to driving, which you have to answer within 10 minutes.
You can take up this test either in Hindi or in English
Minimum score is 6 to clear this test.
Before this test your eyes will be tested for color blindness.
If you cleared the test you will get learning license on the same day within 2-3 hours and in case you are unable to qualify the test then you have to come again for the test after one week.
You can get full information regarding the questions asked in the learning test by visiting www.trasport.delhigovt.nic.in and then clicking on Online DL appointment System followed by clicking on Our Services.
Learning License remains valid for 6 months, but once you get learning license, you can apply for permanent license after one month.
There are certain formalities which have to complete after getting learning license.
You have to fill form no .4 for this.
You can get this form free of cost from any of the zonal offices as well as you can download from
Attention ! Attention ! Attention ! Attention !
ULIPS were the best selling products for pvt. life insurers. Now when the market are not performing, people are not ready to invest in ULIPS as the returns are negative in them and the traditional product of pvt. life insurers are not easy to sell as their bonus is low, these days there is lot of un employment in life insurance industry. Due to that there is lot of misselling, taking place. Whatever company it is, make sure that you are buying the policies from the authentic agents only, otherwise you may land in trouble. One should not be greedy about the benefits which are given rather they should cross verify their details on the internet.
Always check the identity cards of the agents visiting you, note down their details, branch addresses so that they are easily traceable.
Following are points which can help you to escape mis selling.
1. Always check the license of the life insurance agent.
2. Note down his address, his branch address and also ask for a land line number of the branch as mobiles are changed every day.
3. Never give cash to any one, who ever it may be and whatever reasons he give. In case there is no option other than cash, go for DD in favor the life insurance company.
4. Payment should be done only by account payee cheques..
Following are the traps used for mis selling
1. I am calling from the head office of ABC life insurance
2. Since your policies are lapsed so ABC… company offering you new policy and your money will come to you in 3 months in your account….
3. You will get ATM card and you can withdraw agents commission every year
4. You will get 125% of first premium once you pay 2nd premium …
5. Your number is chosen to get the policy……
6. Get mediclaim free with life insurance policy….
7. Calling direct from the ABC….. company, the commission of the agents will be given to you.
ECS mode is the most preferred mode by any person as the premium keeps on deducting from his bank in easy installments without visiting any branch or LIC counter, also one need not to remember the due date for premium for his policies.
But there are lots of ifs and buts attached to ECS in LIC which are not known to most of lic agents and in many cases even the staff of LIC does not know it. The details below can help the policyholders and LIC agents to check the functionality of ECS for the policies in LIC.
Whenever any body is taking any policy from LIC under ECS monthly mode, he must be aware about the following points.
1. CANCEL CHEQUE: Policyholder must provide a cancel cheque along with the proposal form so as to avoid any mistake by agent in writing their account details in ECS form. The information needed for ECS is Name of the account holder, Account number, MICR No., branch address, type of account (Saving, current, HUF etc). Please note that if there will be any mistake in any of the above mentioned information, ECS will not work properly.
2. CORRECT INFORMATION ENTERED: During the process of completing the policy, the proposal form passes through different stages, where the data entry is done by different persons other than agents in the LIC branch. Once all the process is complete the agent must ensure that the information entered in the system is accurate as per the cancel cheque provided by the client. Also the policy holder must ask for the ECS status from the agent so that he himself cross check the accuracy of the information.
Note: Sometimes the account holder and policyholder are different persons, in that case the agent must ensure that during the process of data entry in the computer, the correct information is entered.
Note: ECS not debited due to any reason is same is cheque dishonor and the bank will impose the penalty on the policyholder and LIC will impose penalty on the agent. This penalty will differ from bank to bank.
3. INTIMATION TO THE BANK: Once the policy is completed in LIC, and a number is issued to the policyholder, the policyholder must also submit the ECS mandate form withing 20 days from the date of commencement of the policy, in the bank as well and keep a copy of the receiving with him, so that in case ECS is dishonored from the bank side, the policy holder can take against the bank.
If the above mentioned points are taken seriously then the chances of ECS dishonoring can be reduced up to large extent. Along with the above mentioned points the policyholder must also consider the following points.
Note: The following points are important once policy is issued.
1. If the ECS is dishonored then to start ECS again all the premiums due till that date must be paid. Arrears of premium cannot be collected through ECS.
2. ECS mandate form must be attested by the bank and copy of same should be submitted to the bank for their records. For new cases, copy of the mandate form is to be submitted after filling policy number and premium amount in the form.
3. ECS DEBIT DATE: Debit dates allowed: only 7th, 15th and 28th of the month. (Both at NB & PS Stage) which are calculated automatically on the basis of Date of commencement as follows :
Date of commencement 1st to 7th – 7th of the same month
8th to 15th – 15th of the same month
16th to 31st – 28th of the same month.
4. ECS payment: Premium for ECS mode policies cannot be paid at the Branch cash counter or through any other alternate channels. Premium can be paid at cash counter only for dishonored cases or after the grace period.
5. Policy holder must maintain sufficient balance on the debit date. If mandate is dishonored, premium is to be paid at any branch cash counter in cash or by DD with dishonor charges (as applicable) and interest due for late payment (if due) up to the date of payment.
6. All previous installment are required: While making the payment for dishonoured installment, all the premiums due till the month of payment including the installment due in that month irrespective of the debit date is to be paid. If any premium is due within 15 days of the next month that too should be paid.
7. For changing the bank details, request is to be given to the respective service branch only. A new mandate form duly attested by the bank is to be submitted and a copy is to be submitted in the bank also.
8. For ECS(MLY) mode no receipt or notices will be dispatched.
9. Sometimes it is possible that due to some technical or other reason premium is not debited on the debit date and is delayed or advanced by few days. Kindly ensure the availability of funds for at least 7 days before and after debit date to avoid dishonors.
10. To If a policy holder desires to discontinue the ECS facility, request for same should be given to the servicing branch at least 20 days in advance of the debit date for MLY mode policies and 30 days in advance for other modes.
11. Acknowledgement letter received from the branch must be verified and any discrepancy should immediately be informed to the branch..
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- LIC CUSTOMER PORTAL LOGIN ISSUE on
- LIC Surrender Form; LIC surrender form 5074 download; LIC surrender form free download on
- JEEVAN LABH VS ENDOWMENT PLAN on
- Jeevan Saral : LIC Jeevan Saral : Jeevan Saral from LIC : Table no 165 on
- Jeevan Saral : LIC Jeevan Saral : Jeevan Saral from LIC : Table no 165 on