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Table no. 934

Coming soon…

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Posted by:V.K. sharma, September - 12 - 2013

All LIC Plans with either closed or altered after 30th Sept 2013. Some of the best selling policies like Jeevan Anand, Jeevan Saral, Jeevan Ankur, New Bima Gold, Jeevan Shree-I, Komal Jeevan and many more may not be available for sale after 30th Sept 2013 and if they will be available then it will be costlier because the policyholders will have to pay service tax extra over these policies.

Buy LIC POLICIES before 30th Sept 2013

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All LIC plans are becoming expensive
All LIC plans are becoming expensive

This is not merely a news article Please find the attached proof of GAZETTED NOTIFICATION of IRDA for closing the plans of LIC OF INDIA.

Plan Closure Proof
Plan Closure Proof

Buy LIC POLICIES before 30th Sept 2013

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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.


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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Posted by:V.K. sharma,
LIC Claim Ratio Reached 100%
LIC Claim Ratio Reached 100%



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Income Tax Slab for FY 2013-14 : Income Tax Slab for AY 2014-15
Posted by:V.K. sharma, February - 28 - 2013
Income Tax Slab for FY 2013-14 : Income Tax Slab for AY 2014-15
Income Tax Slab for FY 2013-14 : Income Tax Slab for AY 2014-15
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Posted by:V.K. sharma, February - 22 - 2013

                                           GUARANTEED MATURITY SINGLE PREMIUM  

             (Close ended planavailable till 10 April 2013 Tax rebate as per rules, Best for Children)

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LIC JEEVAN SUGAM is another product in the bouquet of Single Premium plans of LIC. This plan is going to launch on 25th Feb 2013.

Unique Selling Features:

1. LIMITED PERIOD: CLOSE ENDED PLAN available only for 45 days from 25th Feb 2013

2. MATURITY BENEFIT: Guaranteed Maturity Sum Assured (GUARANTEED) + Loyalty addition.

3. One time investment with NO UPPER LIMITED


If Death occurs with in 5 years, 10 times of the premium paid (excluding any premium any)

If Death occurs after 5 years, 10 times of the premium paid + Loyalty Addition.

5. EASY LIQUIDITY: Loan/SV available immediately after taking policy.

Guaranteed Surrender Value:

a) First year: 70% of the single premium excluding extra premium, if any.

b) Thereafter: 90% of the single premium excluding extra premium, if any

6. Plan available for children aged 8 years & Above but equal to 45 years of age (nearest B Day)

Eligibility Conditions:

Minimum age Entry:                  8 years completed

Maximum age Entry:                 45 years ( Nearest B day)

Policy Term:                               10years

Mode of premium payment:   Single Premium

Maturity Sum Assured:           Minimum – Rs 60,000(Max – No upper limit)

Increased Maturity for higher maturity sum assured

Maturity Sum Assured                          Increase in maturity sum assured

Below Rs 150,000                                   Nil

Rs 150,000 – Rs 399,999                       3.50%

Rs 400,000 and above                           4.50%


Form no. 300 for 18years and 18years above and Form no. 340 for age 8years to 18years.

The service tax 3.09% will be applicable on the single premium.

Loan will be available on this policy from day 1 @ 10.45% compounded half yearly.

Back dating is possible in the same financial year and the interest to be charged @10 % p.a.

Download Yield Calculator for 813-YIELD CALCULATOR

Download Pamphlet for Sugam Phamphlet

Download ready Premium Chart for Jeevan sugam ready premium chart

Download Power point presentation for Jeevan Sugam ppt

Watch the video Below (in Hindi) How LIC JEEVAN SUGAM works?



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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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Posted by:V.K. sharma, February - 01 - 2013

LIC has been synonymous with insurance in India for a long time now. Ever since its inception in 1956 Life Insurance Corporation of India (LIC) has not just been insuring lives as the country’s largest life insurance company but has also been creating wealth for the masses as the country’s largest investor.

Today, LIC with the work force of 1.2 Lakhs and an agency force of 12.78Lakhs with other intermediaries services about 30crores policies. Today LIC functions with 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices, 1202 satellites offices and the corporate office. LIC’s wide Area Network covers 113 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities.

The range of products offered by LIC is unmatched in the industry too- both in terms of number as well as the range. From retirement plans to take care of your needs after retirement to schemes that help you cater to the financial needs of your child. LIC has solutions for every need of a policy-holder.

Apart from providing individuals and corporations with a mechanism for transferring their risks, LIC provides a means for mobilizing long term savings and investing them prudently. Over the last several decades LIC has been implementing state social insurance programmes, especially in the areas of pension and disability. LIC offers group policies to various groups such as employer-employee, cooperatives, weaker sections of society, etc and insurance coverage to people below poverty line at subsidized rates under social security group  schemes and has been managing AABM for rural landless house holds. Another scheme namely JBY is implemented for BPL or for people marginally above BPL. Each of the above schemes have scholarship benefits to the children of the member of the scheme.


This was established in 2006 as part of the organization’s commitment towards corporate social responsibility. The objectives include relief of the poverty or distress, advancement of education, medical relief and advancement of any other object of general utility. The Foundation has supported projects ranging from construction of hospitals, providing educational facilities, old age homes, hostels buildings for children in tribal areas, etc. It has also provided ambulances and mobile medical vans for the underprivileged sections in remote areas and special school buses for differently abled children. The foundation has also supported cochlear implant surgeries for children from economically weaker sections of society through KEM Hospital, Pune. Apart from this, LIC Golden Jubilee Scholarship Scheme is an excellent CSR initiative where scholarships of Rs 10000 each per annum are awarded to meritorious students across the country belonging to economically weaker sections of society.


While taking care of its social responsibilities, LIC has also kept a keen eye on the market to seize opportunities to grow its business.

Product development: LIC continues to launch innovative products to address the needs of different segments of the society.

Training: LIC conducts regular workshops and training modules for its office staff and field staff both internally and also in association with reputed names in industry.

Overseas Operation: LIC serves the Indian diaspora overseas through its branch offices and joint ventures.

Bancassurance and alternate channels: LIC has tie-ups with 8 PSU banks, 4 private banks and 33 UCBs/RRBs/cooperative banks under Corporate Agency agreement. In the current year, LIC has planned to show a substantial income from this source.


Being the largest financial institution in the country-managing assets worth Rs 14.17lakh crore which is about 15% of India’s GDP also brings its share of responsibilities. It is our endeavor to not just grow our already formidable market share but also be nimble enough to embrace new ideas and new technology to cater to the needs of every Indian.




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Misleading Telephone Calls
Posted by:V.K. sharma, December - 31 - 2012


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:

misleading telephone calls
misleading telephone calls
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