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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Flexi Plus of LIC : LIC flexi plus
Posted by:V.K. sharma, December - 18 - 2012

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 /
legal heir.
• 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.

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.

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.


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.

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.

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.

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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)

Death Benefit:

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.

New Jeevan Nidhi

Maturity Benefit:

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.

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How to Get Driving License in Delhi
Posted by:V.K. sharma, December - 09 - 2012

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

7. Palam

8. Mayur Vihar

9. Ashok Vihar

10. Maal Road

11. Suraj mal Vihar

12. Rohini

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.

Online Facility

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

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

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.

Tests Required

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 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.

Permanent License

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



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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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Film Star Ranbir Kapoor also believes in LIC success
Posted by:V.K. sharma, November - 14 - 2012


At the launch of the DVD of his latest hit Barfi! recently Ranbir gave some quirky excuses on why should people watch his film on a DVD. “Since we know it is a health conscious country we live in, so instead of gifting Barfi sweets buy them Barfi! DVDs,” said Ranbir, who played a deaf and mute character in his super hit film.

“When we have grand children, the film will not be in the theatres. So to show them and teach them about life the DVD is good. So you must invest today and reap benefits later… So buy a DVD for investment. Like you buy LIC, buy Barfi! DVD,” he said.

“If you sell a smile through cinema, nothing is greater than that,” he added in a lighter vein, as he was accompanied by co-star Ileana D’Cruz. In fact, the salesman in Ranbir was all set to go all out selling his film to the Oscar committee too. “Hope the Oscar committee gets some sense and they select the film. Else Dada will go there,” he said.


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Diwali Gift for Girl Child in Nagpur
Posted by:V.K. sharma,

In a Diwali gift to girls in families living below poverty line (BPL), Nagpur Municipal Corporation (NMC) standing committee has approved an insurance policy for all girls born after June 6, 2012. The beneficiary girl child will get Rs 1.24 lakh on attaining the age of 21, without any investment from her or the family. Nagpur Municipal Corporation (NMC) has decided to implement this scheme through the trusted Life Insurance Corporation Of India (LIC).

The ambitious project has been planned by chairman of standing committee Dayashankar Tiwari on the line of schemes in MP, Rajasthan, Haryana etc. However, NMC is the first civic body to implement the scheme on its own. Most such schemes are funded by either the state government or the centre.

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Domestic institutional investor Life Insurance Corporation (LIC) seems to be diverting its attention on sunrise sectors like software and telecommunications from the traditional financial, consumer and cement sectors.

According to a global research report released by Bank of America and Merrill Lynch, the public sector insurer has offloaded shares worth over `7,020 crore in financial, consumer and cement companies during the second quarter of the current financial year. But during the quarter it has acquired shares worth over ` 2,355 crore in software and telecom companies, it said.

It added that the company sold shares of private lenders ICICI Bank and HDFC Bank and pharma company Cipla during the July-September quarter and purchased shares belonging to Tata Consultancy Services (TCS), Infosys, Wipro and telecom major Bharti Airtel.

“State-run LIC lowered its exposure to companies like ICICI Bank (with sale of shares with an estimated $207 million), HDFC Bank ($175 million), Cipla ($132 million), Voltas ($94 million) and HUL ($91 million),” the report said.

While it shed shares of these companies, LIC bought shares from firms such as Wipro ($114 million), Bharti Airtel ($97 mn), Hero Motocorp ($81 mn), Infosys ($80 mn) and TCS ($55 mn).

LIC sold shares valued about $450 million within the finance portfolio during the second quarter followed by consumer ($198 million), cement ($192 mn), pharma ($139 million), industrial ($134 million) and media/hotel ($53 million).

As per the report, LIC has emerged as net sellers during the July-September quarter of 2012 and most of the pullout was from private sector companies. On the other hand, LIC was a net buyer in the April-June quarter of 2012 with a purchase of shares worth over $2 billion in Indian equities and sold shares of $115 million.

LIC’s investment in the software sector stood at $277 million followed by $112 million in the telecom sector, $23 million in auto, $19 million in metal and mininig and $5 million in the energy sector. While financial sector accounted for over 24% of LIC’s total equity portfolio in the country, energy segment constituted over 16%, consumer goods at 12% and industrial space about 10%.

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Cabinet okays 49% FDI limit in insurance, pension funds
Posted by:V.K. sharma, October - 05 - 2012

NEW DELHI: The government on Thursday reached out to the BJP, seeking support for legislation to increase the foreign investment cap in insurance and open up the pension sector, setting the stage for negotiations with the principal opposition party and raising the hope that the wait for financial sector reforms may finally be over.

“Legislation-making in Parliament… is a process of discussion and negotiations. Many bills have been passed after discussion with the opposition, especially the principal opposition party,” Union finance minister and the spearhead of the reforms rush P Chidambaram said just after Cabinet cleared the two long-pending financial sector Bills. He also invoked BJP’s claim to be pro-reforms.

In what is being dubbed as the second wave of reforms, the UPA government on Thursday approved 21 proposals including legislation to deepen commodities trading in order to help farmers hedge their risk, a modern set of rules for the corporate sector and a proposal to let the Competition Commission vet all corporate mergers and acquisitions to prevent companies from controlling market mechanics.


source : TOI

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