Regular & Fixed Income whole life Plan in LIC OF INDIA
Posted by:V.K. sharma, November - 16 - 2011

In the time of uncertainty, People wants to have regular & fixed income but it is almost impossible to get regular, fixed and  hassle free income lifetime. Business man who have doing good and wants a security for their family can opt for these plans as you never know what will happen in future but your family will be safe life time they keep on getting regular and fixed income. People who wants to have regular, fixed and life time guaranteed income for them its a ray of hope. LIC OF INDIA offers two plans where they can get guaranteed monthly, quarterly, half yearly or yearly income through out their life.

One plan is suitable for children ( Specially for Girls ), In this plan, A lump sum or annual payment is made till the term of the policy after the maturity the child keeps on getting a regular, fixed and life time income and a handsome insurance also for their full life. and This plan is guaranteed by cent. govt. as well. For more details Visit LIC HELPLINE

In another Plan, The minimum age of getting regular, fixed and guaranteed income lifetime is 40years of age, if you are less than 40years of age you can start investing in this plan and once you attain 40years of age you will start getting lifetime income. If you put a lump sum amount in this plan or regular annual investments even then you can get regular income for their life time.

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How to choose life insurance?
Posted by:V.K. sharma, November - 09 - 2011

There are various life insurance companies operating in India, every day a new company is planning to set up its operations in India. India is the 2nd largest country in the world population wise (1,210,193,422 as on March 31, 2011) and only 30% of the population is insured.

There are 23 life insurance companies operation in India as on March 31, 2011, including LIC OF INDIA . All 22 pvt. life insurance companies started their operation after year 2000. IRDA is the insurance regulator came into existence in the year 2000.

There is always confusion among new life insurance customers about their plans as mentioned above there are 23 insurance companies operating in India with more than 200 life insurance products.

In the busy life, people have very less time to do research and analysis about these life insurance products and they buy life insurance policies blindly as suggested by the company representatives or life insurance advisors near them.

There are various points to be considered while buying life insurance products, some of them are listed below:

  • What is the claim ratio of the life insurance company?  You are buying life insurance policy to cover your family for unforeseen unfavorable  future financial circumstances, but what if after buying life insurance policy your goal does not meet. LIC OF INDIA is settling maximum claims 99% , average of rest 22 life insurance companies are settling only less 72%.
  • What is the bonus rates declared by the company in last financial year? Life insurance companies declare their bonus every year, before buying the product please do consider the bonus how much maturity will come to you and ask your advisor to calculate it as per bonus declared by the company in last year. LIC OF INDIA has maximum bonus rates in entire life insurance industry.
  • What is the profit of the life insurance company? Life insurance Companies are going and coming, this process continues but you and your family has to stay. What is the guarantee that at the time of maturity the company will stay . Please do consider its profit and its balance sheet for better security to your family and its future. LIC OF INDIA has declared total profit of Rs 17,000 crores last year, whereas hardly any pvt. insurer company exits which have declared profit even 1000 crores. 

for more details you can visit and for the facts and figures mentioned above, please consult IRDA report 2008-2009.

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LIC Of India Offers Variety Of Plans
Posted by:V.K. sharma, November - 06 - 2011

In India, 23 different companies operating as on 1st Jan 2011, including LIC OF INDIA. All other insurance companies started their operation after the year 2000. All these companies offers variety of plans.

LIC OF INDIA is the largest insurer in India operating since 1956, it has launched more than 210 plans since its inception. Even today it offers variety of plans, they are 48 in numbers ( which is maximum in entire insurance industry of India) meeting the requirements of every individual. Insurance Plan, whole life plans, Endowment Plans, Child Plans, Joint life Plans, Plans for handicapped people, Ladies Plans, Retirement Plans, terms Plans, Investment Plans, Unit linked Plans, Health Plans, Special Plans.

Whoever you are, whatever you do, wherever you live, there is a plan in LIC OF INDIA for every Indian. Visit LIC HELP LINE to get the best plan for you.

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LIC & IIFCL to invest Rs 10k cr in take-out financing scheme
Posted by:V.K. sharma, September - 08 - 2011


India Infrastructure Finance Company Ltd (IIFCL) and Life Insurance Corporation (LIC) have drawn up plans to invest Rs 10,000 crore during 2011-12 in the infrastructure sector, through the take-out financing route.


They have agreed to jointly buy out up to 40 per cent of infrastructure loan portfolios of banks, each having 20 per cent exposure.


“IIFCL will take all the initiatives with the banks regarding the portfolios. We have earmarked a total of Rs 10,000 crore, each investing Rs 5,000 crore, for the current financial year,” S K Goel, chairman IIFCL told Business Standard.


Under the scheme, IIFCL is allowed to take up to 75 per cent of bank loans for an infrastructure project on to its books, thereby freeing banks’ capital and enabling them to lend in new projects.


Since IIFCL has inherent expertise in infrastructure financing, it will carry out all the due diligence of the projects, Goel added.


A senior LIC official said there are some issues that need to be addressed.


“The main issue is the sharing of the liabilities. We are yet to take a call on the extent of liability which LIC can bear in case an asset becomes non-performing. We need to understand the risk carefully before entering into a particular project. Then we also need to understand to what extent we can invest under the sector investment norms,” the official added.


According to the Insurance Regulatory and Development Authority (Irda) guidelines, LIC’s exposure in a single project is capped at 10 per cent of the total investiable fund. The insurance regulator also mandates life insurers to invest at least 15 per cent of their controlled funds in infrastructure and social sectors.


According to sources, the idea of roping in LIC to partner IIFCL in the take-out financing scheme was mooted by the finance ministry in the wake of the lukewarm response of the take-out financing scheme floated by the infrastructure financier. So far, IIFCL has been able to disburse only Rs 90 crore of the total sanctioned amount of Rs 3,000 crore under the take-out financing scheme.


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The government-owned Life Insurance Corporation of India (LIC) has registered a six per cent increase in market share to 78 per cent of all new life insurance policies bought by customers since April 1 during the current financial year. LIC’s market share at the end of March 31, 2011, had stood at 72 per cent of all new policies sold during the last financial year (2010-11) with the 23 rival life insurance companies, most of which are tied up with international giants, holding 28 per cent share. The combined market share of these companies has now fallen to 22 per cent during the current fiscal, according to the latest figures.

LIC‘s north zone chief Nilesh Sathe said the share of the private sector companies has come down as customers are turning away from the unit-linked life insurance products (ULIPs) offered mainly by the private sector companies as these have become risky because of the volatility in the stock market. Investments in LIC‘s conventional life insurance products that are not linked to the stock market are considered much safer.

However, though in terms of the number of policies LIC has a 78 per cent share, in terms of the percentage of first time premium income the company’s share is at 72.43 per cent. This is because the private sector companies focus more on big ticket premiums, which has given them a larger average income per policy.

 The average ticket size of the first premium income of private sector companies works out to Rs 23,293 while the corresponding figure for LIC is Rs 12,806. The average ticket size for the insurance industry as a whole is Rs 15,070. Sathe explained that LIC offers a much wider range of policies, starting at a minimum premium of Rs 250 with life insurance value of Rs 30,000. This enables the public sector company to achieve the social objective of taking its insurance cover to a wider range of the country’s population.

LIC also has the lowest outstanding claims ratio of a mere 0.37 per cent. The figures also show that during 2009-10 while LIC had settled 99.8 per cent of death claims, the private sector companies had settled 96.8 per cent of such claims. There were also variations among the private sector companies with some doing better than others.

Sathe said the LIC claims that have not been settled were mainly due to family disputes with one member moving court against another. “There have been instances where the mother was named the beneficiary of the policy in the case of death but the wife has moved court to assert her claim,” he said. Some claims have also come in the doubtful category as the insured person has died shortly after buying the policy. In such cases, it often turns out that the person had some illness that he had concealed from the company at the time of insurance.

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LIC joins online play with pure term policy
Posted by:V.K. sharma, September - 05 - 2011
MUMBAI: Life Insurance Corporationwill sell its policy through the internet for the first time soon with the launch of a pure term plans”We are in the process of designing a pure term product which would be sold through both online and through agents,” LIC’s ED- marketing S Roy Chowdhury. “The rates will be lower than what is charged at the moment,” he added.LIC

currently charges higher premium for its term plans than private competitors. For example, a 30-year-old non-smoker has to pay an annual premium of 7,300 for a 25-lakh policy under LIC’s term plan Amulya Jeevan, while she can buy online policies such as ICICI Prudential’s iProtect for 3,350 and Kotak Life’s e-term plan for 2,750.LIC plans to reduce this gap with the launch of its online term policy, where it can save on agent commission. Its move is expected to make private insurers reduce their rates further. The state-owned insurer is also betting big on Bancassurance, or selling policies through bank branches.

LIC’s ED Vipin Anand said the insurer has set a target to double its income from Bancassurance this financial year to 5% of its total new business income. The insurer is targeting new business income of 54,000 crore this year. At present, 20 banks, including United Bank,

UCO Bank, Central Bank, Corporation Bank, BoM and PNB, sell LIC policies.LIC has announced a bonus of 21,580 crore for its policyholders for 2010-11, which is 95% of its net surplus of 22,716 crore. The rest 5% has gone to the government.

It has announced a higher bonus rate under seven with-profit plans, namely Jeevan Anand, Jeevan Tarang, Jeevan Madhur, Child Future Plan, Jeevan Shree I, Jeevan Bharti I and Jeevan Pramukh. It also announced loyalty additions for the first time in other seven plans.

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LIC OF INDIA increases bonus after 2 years
Posted by:V.K. sharma, September - 03 - 2011

After a gap of two years, Life Insurance Corporation of India (LIC) has raised bonus by up to 15 per cent for 2010-11.

The country’s largest life insurer, which reported a 10.3 per cent rise in net actuarial surplus at Rs 22,716 crore for 2010-11, compared to Rs 20,586 crore in the previous year, allocated Rs 21,580 crore for paying annual bonus to policyholders.

“The bonus rates have gone up after a gap of two years. We will be providing higher bonus rates under seven plans like Jeevan Anand, Jeevan Tarang, Jeevan Madhur, Child Future Plan, Jeevan Shree I, Jeevan Bharti I and Jeevan Pramukh. This apart, we have also brought in seven other plans under loyalty additions,” a LIC spokesperson told reporters.

In the traditional plans category, which accounts for more than 60 per cent of its incremental sales, the insurer will launch cheaper products, in line with the rates offered by private insurance companies. “Currently, our traditional plans are costlier than offered by the competition. So, we will come out with plans with competitive rates,” he said.

In 2010-11, LIC collected Rs 86,444.7 crore by selling new policies, 22 per cent more than Rs 70,891.5 crore garnered in the previous corresponding period. Total investment in debt and equities stood at Rs 2,00,000 crore and the solvency margins improved to 154.07 per cent from 153.96 per cent.



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Jeevan Arogya: An add-on to a basic health policy
Posted by:V.K. sharma, June - 29 - 2011

Jeevan Arogya is the first defined health insurance product to be introduced by India’s largest life insurance company, LIC of India. It will pay the customer a fixed daily cash amount as well as cover specific surgeries.

The product is a Hospital Cash Benefit Plan (HCB) that offers daily hospital cash benefit for a fixed number of days that one is hospitalised. Besides that, it will cover 140 surgeries with the maximum amount one can avail for surgeries being 100 times the daily limit.

The product also offers a lump sum amount that is twice the daily cash limit per hospitalisation day, even for surgeries not listed. This feature is similar to the HCB plan offered by Aegon Religare Life Insurance. Life insurer Tata AIG’s Wellsurance Family Classic offers a standard daily cash plan without  any surgery benefits.

Jeevan Arogya has a number of features that should take care of rising health care costs.

For instance, it increases the limits on the initial daily benefits every year. So, one’s daily cash limits will rise to a maximum of five per cent or up to 1.5 times of the initial amount each year. This would be in addition to the five per cent added to one’s daily cash limit as part of one’s cumulative or no-claim bonus. Together, this could lead to a 10 per cent rise in one’s daily cash benefit.

No doubt, even other health insurers (both life and general) offer a nearly five per cent rise in the sum assured as part of one’s cumulative bonus. However, Jeevan Arogya customers are assured of getting a five per cent rise, even if they are not eligible for no-claim benefits.

Besides, since all other benefits are linked to the person’s daily limits, a rise in the daily limit translates into higher day care and major surgery benefits.

Another feature allows automatic waiver of the subsequent year’s annual premium for customers who make a claim for major surgical benefits.

However, Jeevan Arogya is a complicated product with both yearly and lifetime limits on how many times a claim can be made. So, one is allowed only three day care claims and only one major surgery claim in a year.

In terms of costs, it is much cheaper than the Aegon Religare product. If you opt for a daily cash limit of Rs 2,000, you would be paying an annual premium of Rs 4,000 for Jeevan Arogya. For the same limit, Aegon Religare’s premium would be Rs 13,800.

However, health products from life insurers are more restrictive in nature. While HCBs pay a lump sum, the hospital cash offered by general insurers covers the actual expenses falling within the amount sum insured.

Also, HCBs only cover illnesses mentioned in their policy document. They also permanently exclude pre-existing ailments. In comparison, four years of continuous cover with a general insurer will get you a cover for a pre-existing disease. Except hospitalisation due to accidents, life insurers’ policies usually have longer cooling periods of 90 days from the effective date of the policy.

Insurance experts caution consumers against opting for such HCBs as a standalone health insurance product. Instead, they advise customers to buy health products from a life insurer as an add-on to a basic health policy that will cover actual expenses.

For any further information about LIC PRODUCTS & UPDATES click on and subscribe for our news letter. and for any kind of questions start your discussion at


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Three years ago, Mumbai-based Ashish Shah bought a family floater health cover for Rs 5 lakh. This year, he was in for a shock when his insurer decided to raise the premium from Rs 5,415 to Rs 26,719 despite the fact that he had made no claims. 

But Shah did not want to let go of the policy because he had completed three years, the period after which specific diseases, such as hernia, cataract, dysfunctional uterine bleeding, are covered. He was also just one year short of getting a cover for other pre-existing conditions. What was Shah to do?

He needn’t have worried. With health insurance portability likely to come into effect from 1 July this year, there may be respite for people like Shah. Portability allows you to carry over the pre-existing disease (PED) benefits in your previous policy to the new service provider.

This was one of the biggest deterrents for switching because the customer had to serve the waiting period all over again and PED claims were covered only after a waiting period of 2-4 years. However, Irda has waived this condition, making for a smooth shift to a new insurer provided the previous policy has been maintained without a break.

When to move

You can look for a new insurer not only because of a sudden jump in premium but because a job shift has landed you in a place where the coverage of the existing insurer is inadequate. “People shifting from one place to another face problems due to lack of policy servicing at the new location,” states Irda. Service standards, network of hospitals, lack of coverage in areas such as dental treatment, maternity benefits, etc, could also prompt you to shift.

Portability can be carried out only at the time of renewing a policy, not at any time during the year. However, it is advisable to approach the new insurer at least 45-60 days before the renewal date in order to ensure a smooth transition. Says Sanjay Datta, head of customer service, ICICI Lombard General Insurance Company: “A smooth sharing of data between insurance companies is a must to facilitate portability. For this, the industry wants to move to an IT-based platform for exchange of information regarding waiting period, existing claims, etc. The glitch is that all insurance companies don’t have data that is online and in a standardised format.”

If you don’t start the procedure well in advance, there is a chance that you could go coverless for a certain period. “To avoid such a situation, one can look at a short-term extension of the policy. Besides, a 60-day period is given before a break in cover is considered,” says Arun Mehrotra, head, retail underwriting & product development, Iffco Tokio General Insurance .

Insurance companies have been advised by Irda to acknowledge all applications for portability within three working days. Also, the previous insurer has been advised to share the policyholder’s claim history with their counterparts within seven working days

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RIL buys Bharti stake in Axa joint ventures
Posted by:V.K. sharma, June - 13 - 2011

BS Reporter / Mumbai June 11, 2011, 0:50 IST

Mukesh forays into insurance. Reliance Industries on Friday took yet another step of building a financial services empire by agreeing to buy out the Bharti Group from its insurance joint ventures with French insurer Axa.

Sunil Mittals’ Bharti held 74 per cent stake in the insurance ventures, with AXA the balance 26 per cent – the maximum permissible foreign direct investment (FDI) in the Indian insurance space. The acquisition price was not disclosed by both the companies.

According to the proposed deal, which will need clearances from insurance regulator Irda and Competition Commission of India, RIL and its associate Reliance Industrial Infrastructure (RIIL) will have 57 per cent and 17 per cent, respectively, while AXA will continue to have 26 per cent.

Once the FDI limit is raised, AXA will have the option of picking up another 24 per cent from Reliance. “The proposed agreement contemplates an option by which AXA would acquire from RIL and RIIL up to 24 per cent shareholding in both the insurance companies. Upon exercise of such option, RIL will effectively own 45 per cent, RIIL will have 5 per cent and AXA the balance 50 per cent in both the insurance companies,” a communication from RIL said.

The Insurance Amendment Bill, which is awaiting Parliament’s nod for a long time, has proposed a maximum of 49 per cent stake, but RIL sources said the 50 per cent stakeholding proposed for Axa is only an enabling provision and will obviously be bound by the rules of the day.

Bharti on the other hand said the financial services businesses did not fit into the company’s long-term growth plans. “Bharti intends to use the proceeds from selling off its interests in these joint ventures towards other group businesses in India and abroad,” Bharti said in a statement.

Insurance will be the second major sector in which RIL Chairman Mukesh Ambani will directly compete with his younger brother Anil Ambani who owns Reliance Life and Reliance General. RIL’s entry into the insurance sector became possible after the termination of a non-compete clause which was signed during the demerger of Reliance Group in 2005. Reliance Life had recently roped in Japanese insurer Nippon Life by selling 26 per cent stake for Rs 3,062 crore.

Although the companies did not share the deal value, insurance experts said the valuation of the life insurance deal would be much lower than the Reliance-Nippon deal due to Bharti-AXA’s lackluster performance. “It will be surprising if RIL paid a premium to acquire the stake,” said an insurance analyst.

The first year premium of Bharti AXA Life Insurance has dropped 17 per cent to Rs 362 crore in 2010-11. However, gross premium of the general insurance company increased 77 per cent to Rs 550 crore in 2010-11.

Punjab National Bank, the country’s second largest bank, was also in talks with Bharti Axa for its insurance foray. Sources said the bank is now negotiating with two other insurance companies for a paoosible partnership or acquisition.

In March, RIL debuted in the financial services sector by entering into a joint venture with the D.E. Shaw Group, a global investment and technology development firm. The partnership with DE Shaw led to RIL directly competing with Anil Ambani’s Reliance Capital in the financial services space.

When contacted, J Hari Narayan, chairman, Insurance Regulatory and Development Authority, said “We are yet to get any formal application from the company. Getting a nod from the regulator will depend on if the acquirer company is found fit to operate in the sector,” he said.

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