Category Archives: An Investor Knowledge initiative

Address Change in LIC Policy
Posted by:V.K. sharma, March - 30 - 2016

Address Change in LIC Policy?

Address change in LIC policy, LIC policy में address change कराने का तरीका

LIC Policy में address change करने के लिए आप नीचे लिखे तरीकों में से कोई भी फॉलो कर सकते हैं

1. Offline from Home Branch Only : अगर आपको अपनी LIC policy की home branch (जहाँ से policy ली गई थी ) पता है और आप वहाँ जा सकते है तो आप अपनी home branch में एक लेटर लिखकर दे सकते है ( branch manager के नाम ) की आपको अपनी LIC policy में address change कराना है तो आपका काम बड़े आसानी से हो सकता है

documents जो साथ लगाने है

1 . ID proof (Pan Card, Voter Card, Adhar card )

2 Address Proof ( Voter Card, Adhar card, Electric Bill, Mobile Bill, Water Bill, Rent Agreement etc )

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 2. Offline from any LIC Branch : EDMS (Enterprise Data Management System) ये एक सिस्टम है LIC में जिसमे LIC की सभी पॉलिसियों को scan किया जाता है उसके बाद उन्हें LIC database में upload कर देते हैं Upload करने के बाद उन्हें किसी भी LIC branch से access कर सकते हैं अगर आपकी LIC Policy की image भी यदि आपकी पास वाली किसी भी ब्रांच में visible है तो आप अपना address, LIC policy में कहीं से भी change करा सकते हैं और ऊपर लिखे documents साथ जरूर ले ले

Note :-ये जानने के लिए की आपकी LIC policy की image visible है या नहीं तो आप 01128042584 या 01128042585 पर भी call करके confirm कर सकते हैं अगर इन  numbers पर कोई जवाब नहीं दे रहा है तो आप LIC Helpline numbers पर भी कॉल कर सकते हैं

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3. Online through Email:  ऊपर दी Information (point no. 1 में ) को E-mail से भी आप अपनी home branch में भेज सकते हो यदि आपको अपनी home branch का Email Id मालुम है तो ।  यदि नहीं मालूम तो आप 01128042584 या 01128042585 पर भी call करके ले  सकते हैं या आप LIC Helpline numbers पर भी कॉल करके मदद ले सकते हैं

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यदि आपको यह जानकारी Change address in LIC policy महत्वपूर्ण लगी हो तो http://www.facebook.com/lichelpline पर like जरूर करें

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Investors fail to renew Rs 1.9 lakh cr of insurance policies
Posted by:V.K. sharma, May - 24 - 2013

A large chunk of insurance policies from private insurers lapsed because investors didn’t pay their renewal premium, data from the IRDA’s Handbook of Statistics reveal.

Lapsed Ratio
Lapsed Ratio

 The lapse ratio was as high as 51 per cent for Birla Sun Life Insurance, 49 per cent for Future Generali and at 42 per cent and 36 per cent, respectively, for ICICI Prudential and Bharti Axa Life in 2011-12.

Lapse ratio is the proportion of policies where renewal premium was not paid.

The Life Insurance Corporation has, however, maintained lapse ratios at 4-5 per cent over the last few years.

Clubbing private players and LIC, investors didn’t renew a total of 160 lakh traditional insurance plans of the value of Rs 1.9 lakh crore (total sum assured) in 2011-12, registering a two-fold jump from 2008-09. Traditional plans include term covers, endowment policies and health insurance plans. It excludes unit linked plans (ULIPs). Had ULIPs been included the lapse ratios will be even higher.

 LACK COMMITMENT

The persistency ratio – the number of policyholders who stay with their policy for five years or more – is also low. A majority of private insurers saw less than half their policyholders staying on after the fifth year.

 Why did so many investors not renew their insurance plans? Some insurers say this is a result of investors switching plans due to changing priorities.

Saujanya Shrivastava, Chief Marketing Officer of Bharti AXA said, “Policy lapses are high mainly in the endowment segment where the policy tenure is 10 or 15 years and people lack long term commitment because of changing priorities.”

 Another side to the story could be mis-selling, where agents mis-represent the product to the prospect. The Insurance Ombudsman received a total of 1.07 lakh complaints in 2011-12 on ‘unfair business practices’ in life policies. One-third of these policyholders complained that the product was different from what was projected.

 Changing regulations that see insurers launching new products every year could also play a role.

“Insurers keep launching new products and the message that goes to consumers is that old products are not good enough. They then just try to cut losses and move away (from their older plans),” says Shashwat Sharma, Partner– KPMG (India).

 Where does the money go?

The next big question is – what happens to the premium collected on lapsed policies?

 When a traditional policy is discontinued after three years, it attains paid-up status and the surrender value as agreed is paid back to the policyholder.

However, when a buyer stops premium payments within three years, “the money is moved to reserves and carried forward for future appropriation or made available to shareholders depending on whether it is a participating or non-participating plan,” says Anish P. Amin, Partner-PwC.

 If ULIPs are included, the lapse ratios would be even higher. In a ULIP, if premium payment is stopped within five years, the money is transferred to a separate fund that earns token returns. At the end of the fifth year, the money is paid to the policyholder.

Source Business Line May 18, 2013

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Aadhar Card as ID proof and Address Proof in LIC
Posted by:V.K. sharma, February - 15 - 2013

UID card or Aadhar card can be used as ID proof and Address proof in LIC OF INDIA. This is clarified few days back. So it is a good news for LIC Agents as well as LIC Policyholders.

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How to choose term plan?
Posted by:V.K. sharma, December - 25 - 2012

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.

lic term plan

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?

lic term plan

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.

Mumbai attack relaxsation-1

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”

death claim ration for the year 2011-12

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FRAUDS IN LIFE INSURANCE INDUSTRY
Posted by:V.K. sharma, December - 02 - 2012

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.

Frauds in life insurance industry
Frauds in life insurance industry


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