Diferment of escalation clause for LIC of India’s Club Member agents

Diferment of escalation clause for LIC of India’s Club Member agents

LIC, LIC Agents, Life Insurance

In my earlier post “Conditions for Club membership for FY 2015-16 for LIC agents” I mentioned about the escalation clause and commission required to qualify for the particular club for the financial year 2015-16 for new as well as continuing club members. The escalation clause is a yearly increase in commission by 5% compared to last year, and it was effective from 2013-14 for new entrants and 2014-15 for continuing club members. But as per the new circular of LIC Mkt/A/21(R) dated 01/07/2015  dated 06/06/2016 escalation clause has been reviewed. Continue reading “Diferment of escalation clause for LIC of India’s Club Member agents”

Club Galaxy for LIC agents: All you need to know

Club Galaxy for LIC agents: All you need to know

LIC, LIC Agents, Life Insurance

Club membership for agents is one of the ways Life Insurance Corporation of India rewards its agent for higher and consistent performance. Until May 2014 the highest club was the corporate club and after that Chairman Club was there. There is a huge difference between the eligibility criteria of the corporate club and Chairman Club. In May 2014, LIC of India introduced a new club between the corporate club and Chairman Club named, Club Galaxy.  One of the reasons behind the introduction of Club Galaxy was to motivate the agent to qualify for MDRT (Million Dollar Round Table) and therefore eligibility criteria of Club Galaxy are synced with qualifying conditions of MDRT.  Let me share some important point and conditions of Club Galaxy here:

Membership Year for Club Galaxy

The year in which agent become a member of the club is known as Membership year. For Club Galaxy, membership year is 1st September to 31st August like other clubs. The financial year after which an agent becomes the member of a particular club is known as the qualifying year. Therefore, the first qualifying year was 1st April 2014 to 31st March 2015 and first membership year for Club Galaxy is 1st September 2015 to 31st August 2016.

Eligibility criteria for Club Galaxy Membership year September 2017 to August 2018

Eligibility condition Club Galaxy

Benefits of Club Galaxy for agents

Fringe benefits of the Galaxy Club are not linked with any other club for agents; following fringe benefits will be given to the member of Club Galaxy

  1. Office Allowance: 50% of the actual expenses for maintaining the office or Rs. 100000 whichever is lower will be reimbursed to the agent at the end of the membership year.
  2. Telephone Facility: Maximum reimbursement of Rs. 12000 per annum for rental and call charges of Landline/Mobile phone.
  3. Supply of letter heads envelops and visiting card: Letter head and envelops-500 Nos each per annum and Visiting card-500 Nos per annum.
  4. Club Convention: Members of the Galaxy Club will be allowed to attend the convention at the place decided by the LIC of India or reimbursement of actual airfare or Rs. 60000 whichever is lower for attending MDRT meet. Club agent will also be eligible for out of pocket allowance of Rs. 10000 for attending the MDRT meet. Club Galaxy members will also be eligible for the reimbursement of MDRT registration fee.
  5. Club Blazer: Rs. 5000 for club blazer as per the color and pattern decided by LIC. Earlier club blazer was only provided to corporate club members only.
  6. Other benefits: Daily allowance, group insurance, Medi claim and complimentary diaries will be same as it for Chairman Club member agents.

Advances to Club Galaxy agents

Agents who are qualified and continuing in the Galaxy Club will be eligible for various advances against renewal commission as per the ‘Scheme of Advances to the agents’. Conditions and quantum of the advances are same as per the conditions for Chairman Club member agents except Four wheeler advance which is: Actual prize of the car OR Last two years renewal commission OR Rs. 10 Lakh, whichever is less.


Proposal Form: Basis of your insurance contract

Proposal Form: Basis of your insurance contract

General Insurance, Knowledge Hub, Life Insurance

Insurance is a contract between insurance company and the person want to cover future risk on his life, where the insurer is bound to pay a fixed amount on death of the Life Assured to his nominee in return of premium (one time or regular). This contract starts when insurer accepts the proposal from the proposer on the basis of the details furnished by the proposer in the proposal form (A prescribed format for proposing a life insurance contract).

And since the insurance is based on the principle of Utmost good faith, it means that the customer seeking the insurance must disclose all the personal details (health as well as financial or which ever asked in proposal form). Therefore filling the proposal form correctly is very important, otherwise, can lead to the repudiation of your claim.

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Important information to be furnished in Proposal Form

There are some fixed points which are included in the proposal form of all the insurance companies which has to be filled very carefully and which are as follows:
  • Name: It’s obvious, isn’t it? Always right your name by yourself (Agent can misspell your name) and keep it in BLOCK letter so that it can be read easily. Though proposal form will also ask your father’s name in a separate column but write it with your name. Be sure that you give the exact name as it is in your bank account. Avoid any over writing at any place, especially in your name and if it happens any how just change the proposal form and use fresh one (Don’t hesitate to ask for new proposal form from you agent) to avoid any future problems.
  • Address: Normally you will have to give both current and permanent address, but people give their current residential address and write “same as current address” in permanent address column even if it is not. Make sure to provide both addresses if different. Provide full address with pin code so that all the correspondence from your insurer reaches you in time.
  • Contact No. and Email ID:  These are the fastest way of communication these days, so if you are in a transferable job then provide one permanent contact number which you will use always even if transferred, but also provide your email id because they will not change even if your shift abroad (May be I am wrong, reader’s discretion needed).
  • Date of birth (DOB): Your insurance premium will be based on your age, so write your DOB correctly with supporting documents. Always try to give your School certificate or passport or birth certificate (if life assured is child) as your supporting document as these are considered standard age proof, other documents can also be use as your age proof but with restrictions in Sum assured and term like driving license, PAN card, some age proof like voter card, Adhar card, and  self-declaration will attract extra premium.
  • Nationality: Its very important because many insurers don’t provide life cover to NRI’s (in Indian perspective) living in specific countries, so be sure to provide correct information, and don’t hide that you are an NRI just to take insurance because it can lead to repudiation of your claim to your nominee if any thing happens to you outside India, But don’t panic if you are a resident, then you can roam anywhere without hesitation.
  • Plan and term: Its the scheme you wanted to take, write plan name  and term carefully, without over writing, and thoroughly go through the condition of the plan you want to take before proposing the same.
  • Nominee: Nominee is the person or persons who will receive the claim amount after you. Choose the right nominee in your insurance contract. Write correct and full name of your nominee as in his/her bank account. Write the name in BLOCK letter to avoid any misreading. Give correct age and relation. If in any case your nominee is minor then your have to provide the name of an appointee who is a major person who will take the claim amount of behalf of nominee until he/she is minor, else nominee will receive the claim if he/she became major. Though you are free to make anyone your nominee but making the nominee other than your legal heirs and blood relative could be seen as a Moral Hazard by your insurer and can deny you the insurance( Depend on upon the underwriting principles and guidelines of insurance company). It must be kept in mind that making anyone nominee doesn’t mean that money is for him/her, at any point of time legal heir of the Life assured can claim their right over that money.
  • Occupation, Income, and Education: The maximum life cover you can have to depend on upon your Income, so give right income. You have to give supporting of your income(ITR or CA certificate) with your PAN card no. if your annual premium is higher than 50K (Again in Indian perspective). Insurance cover also depends upon the nature of your occupation, if its too hazardous like aviation, army,  police or other force jobs, mining (Under ground work) etc. then they will attract some extra loading on your premium (Purely depend on the underwriting criteria decided by the insurer). Always give the correct name of your employer if employed/salaried, because insurance companies give quite high risk cover to persons employed in Govt/PSU or reputed firms (where leave details are maintained by employer) without any medical examination. Provide correct details of education level, its very important in the case of female proposer because in India for females, different education level means different risk criteria.

  • Heath details: Now these are the details which should be written carefully without any overwriting and only after reading the question asked, I have seen agents filling the form by themselves without asking anything from customer, so if it happens to you, just read the questions and their answers before signing the proposal form (But take a little headache and fill the form by yourself). Companies provide the insurance even if you are suffering some specific diseases/health problems, but only after medical examination and with some extra premium. So don’t hide anything related to your health or details related to any admission in the hospital for treatment, because you won’t suffer, it will be your spouse and children after your demise if your insurer rejects the claim based on your past health history. If the proposer is a female then provide correct details of your last menstrual date and last delivery date if asked in the proposal form.
  • Family History: Details about the age and health status of your parents, siblings, spouse and children. Give correct age and their health status and if anyone had already died then give the exact reason of death, because many diseases are hereditary. Two or more early deaths(especially by disease or suicide) in your family can be seen as a higher risk on your life
  • Other policy details: Provide all your other policy details with the same or other insurer, policy details from same insurer will help the insurer to estimate their own risk on your life since policy taken within two-year are added with your proposed risk and medical examination and any special reports  and underwriting decision will depend upon the cumulative risk in all the policies taken from same insurer within two year. Policies from other insurer are required for financial underwriting, means are you capable of depositing the cumulative premium in all policies from your given income? If the proposer is a female and if married then provide policy details of your husband too. If life assured is a child then provide all policy details of parents in the proposal form.
  • Signature and date: Sign the proposal form at the appropriate place after carefully filling the proposal form and if filled by other person or agent then read all the details carefully before signing it. Give place of signing and date on which you are signing the proposal form. Since insurance, a long-term contract so use the sign which you use always in future. Many companies provide the scanned image of your proposal form with policy bond, ask your agent about it and if not provide keep on a photocopy of your proposal form with you.
So its a legal document read it carefully, fill it clearly and sign it sensibly because it will always be your basis of the contract with an insurer, and you don’t want that your nominee will be denied for any claim in future.
Share your idea and comments freely.
LIC’s rate of interest for various financial transaction for FY 2016-17

LIC’s rate of interest for various financial transaction for FY 2016-17

LIC, Life Insurance

Life Insurance Corporation of India (LIC) every year declares the rate of interest to charged on the various financial transaction in the coming financial year. These financial transactions include policy loan, revival, backdating of policy and many other transactions. The rate of interest in these financial transactions are declared by the actuarial department of LIC.

Rate of Interest for the various financial transaction for FY 2016-17

S No.Type of TransactionRate of Interest
1 (i)Policy Loans [under all plans except Jeevan Aastha (Plan 195), Jeevan Vridhhi (Plan 808), Jeevan Vaibhav (Plan 809), Jeevan Sugam (Plan 813), Jeevan Shagun (Plan 826), Jeevan Sangam (Plan 831) and Jeevan Shikhar (Plan 837)]10.00%
1 (ii)Policy Loans under Jeevan Aastha (Plan 195), Jeevan Vridhhi (Plan 808), Jeevan Vaibhav (Plan 809), Jeevan Sugam (Plan 813), Jeevan Shagun (Plan 826), Jeevan Sangam (Plan 831) and Jeevan Shikhar (Plan 837)10.50%
2(i)For policy issued on or after 01/01/1987, arrear of premiums with in six month from the date of FUP9.50% (subject to minimum int. of Rs. 5)
2(ii)For policy issued on or after 01/01/1987, for revival9.50% (subject to minimum int. of Rs. 5)
3Arrear of premiums for alterations and age proving higher9.50%
4Dating back the policies9.50%
5(i)Discount factor for commutation of instalments under Education Annuity policies.9.50%
5(ii) Discount factor for commutation of Income Benefits under Multi-purpose, Guaranteed Benefits under Annuity Policies.9.50%
5(iii)Discount factor for unpaid instalments under settlement option9.50%
6Settlement options for Maturity Claims6.00%
7(i)Advance payment of premiums under Jeevan Sneha (Plan 128)10.00%
7(ii)Advance payment of premiums under Jeevan Bharati (Plan 160) and Jeevan Bharati I (Plan 192)6.00%
8Delayed payment of claims9.00%
9Discounted value of Accumulated Vale for calculation of SSV under Jeevan Saral (Plan 165)7.50%
10Accumulation of Survival Benefit (SB) under Jeevan Bharati (Plan 160) and Jeevan Bharati-I (Plan 192)4.00%
11Discounting of claims during the last year of policy term9.00%
12Reinstatement of surrendered policies10.50%

These rates will be effective from 01/04/2016 to 31/03/2017. All the rate of Interest mentioned above will also be applicable on all the plans launched after 01/01/2014.

Terminology that every LIC club member agent must know

Terminology that every LIC club member agent must know

LIC, Life Insurance

LIC of India has more than 12 lac agent, and according to their performance LIC rewards them in the different form. One is Club membership. According to the business procured by agents in last 4 year LIC awards club membership to agents. These Clubs are Corporate Club, Galaxy Club, Chairman Club, Zonal Manager Club, Divisional Manager Club, Branch Manager Club and Distinguish Club. LIC has made the criteria for the entry to new club or continuation in a new club. These criteria mainly depend upon a number of lives procured by an agent in the financial year, total in force lives, renewal commission, and first-year commission. But other than this, there are many other factors which an  LIC club member agent should know to continue or enter in a new club, which we are going to discuss here one by one, all the points covered here to be done in a financial year.

Number of Policies” in a financial year:

This is, all the policies procured by an agent in a financial year (1st April to 31 March). This will also include policies done on the same life by the agent in the same financial year.

Number of lives” by LIC club member agent in a financial year:

The number of lives is a very crucial factor for getting a club membership. The number of lives means, the number of the different people insured by an agent in a financial year. An agent may do 2 or more policies of a single person. When an agent does 100 policies it does not mean he has done insurance of 100 different people. There is no exact correlation between Number of Policies and Number of Lives, an agent can do insurance of 2 or more individuals in 1 policies also. But, more the number of lives, more the policies.

“Total Inforce Lives” by LIC club member agent

This is nothing but all the policies procured by an agent from the first day of his agency, which is still running (in force condition as on  31 March of the current financial year). Only those policies will be considered as in force where  FUP is less than 6 months. Policies under auto cover are not included in “total in force lives” where FUP is >6 Month.

Policies which are in auto cover (like New Bima Gold, New Janraksha, and Jeevan Saral) but FUP >6 months are considered as lapse and not included in “Total in force lives” of the agent. In differed annuity policies where policy is vested and premium payment, the term is over are also excluded from “Total in force lives”. 

“Net Number of Lives” by LIC club member agent in a financial year

This is the first condition for LIC club member agent, which he has to complete to continue or enter a new club. for CM club, it is 40 Net lives and 30, 20 and 15 for ZM, DM, and BM club respectively. The net number of lives arrives after reducing duplicate lives, first-year lapse policy from the total number of lives introduced by an agent in a financial year.

Here yearly policy complete in last financial year having FUP >6 months will also be taken as first-year lapse policy. I am quoting the lines of LIC circular Mktg./A/ZD/29/2009 Date: 22nd October 2009 for club member conditions here for reference.

“Net Number of Lives” are distinct lives insured ( not number of policies) during the qualifying financial year reduced by the number of lives who had been insured in the financial year preceding the qualifying financial year whose policies are lapsed as on 31st March of the said qualifying financial year.

“First year Commission” by LIC club member agent in a financial year

This is the commission paid to an agent for the first year of the policy. The first-year commission includes first commission paid on yearly policy, commission paid on first two installments of half-yearly policy and commission paid on first 4 and 12 premiums in quarterly and monthly mode policy respectively. Bonus commission paid to an agent on the first-year commission is also included here for club membership purpose.

For more click on the next page

LIC’s New Plan Jeevan Pragati (Plan No. 838)

LIC’s New Plan Jeevan Pragati (Plan No. 838)

LIC, Life Insurance

Jeevan Pragati, this is the name of New life insurance plan of Life Insurance Corporation of India, Table No. 838. It is going to be launched on 03/02/2016. Jeevan Pragati is a non linked, with profit endowment assurance plan, where death sum assured automatically increases after every five years during the term of the policy. Unique Identification number of Jeevan Pragati Plan is 512N306V01.

हिन्दी मे पढें: एल आई सी की नयी योजना जीवन प्रगति (तालिका क्र. 838)

Death Benefit in Jeevan Pragati Plan

On death of the Life assured during the policy term, death benefit equals to “Sum Assured on Death” along with vested simple reversionary bonus and Final Additional Bonus (FAB) if any will be payable.

Here “Sum Assured on Death” is defined as the higher of

  1. 10 times of annualized premium or
  2. Absolute amount assured to be paid on death, which is
    • During the first five policy years: 100% of Basic sum Assured (BSA)
    • During 6th to 10th policy years: 125% of Basic sum Assured (BSA)
    • During 11th to 15th policy years: 150% of Basic sum Assured (BSA)
    • During 16th to 20th policy years: 200% of Basic sum Assured (BSA)

Death benefit mentioned here will not be less than the 105% of total premium paid up to the death of life assured.

Premium mentioned here will not include any taxes, extra amount in the policy due to underwriting decisions and rider premium, if any.

Benefits payable on Maturity in Jeevan Pragati Plan

On survival to the end of the policy term, “Sum Assured in Maturity” along with vested simple reversionary bonus and Final Additional Bonus, if any, will be payable. “Sum Assured in Maturity” mentioned here is equal to Basic sum assured in the policy.

Optional Benefits available in Jeevan Pragati Plan

  • LIC’s Accidental Death and Disability Rider UIN (512B209V01): If this benefit is opted for an additional amount equal to the Accidental Benefit Sum Assured is payable on death due to accident, provided the rider is in full force at the time of the accident.

Other features of Jeevan Pragati

  1. Loan facility available after payment of full 3 years of premium.
  2. Policy can be surrendered after payment of full 3 years of premium.
  3. Policy can be revived with 2 years of FUP.
  4. Taxes are applicable as per prevailing rates
  5. Policy can be dated back in same financial year
  6. Assignment and nomination can be made in this policy
  7. Free look period of 15 days available from date of receipt of the policy bond.

To know about the premium rates of Jeevan Pragati please Click Here. For ready recknor please Click Here


Relaxations in club membership conditions for LIC agents

Relaxations in club membership conditions for LIC agents

LIC Agents, Life Insurance

Life Insurance Corporation of India (LIC) has more than 12 lac agents. To motivate the agents, LIC have made different club according to the business procured by agents and club membership rules. These clubs mainly are, Distinguish Club, Branch Managers’ Club (BM Club), Divisional Managers’ Club (DM Club), Zonal Managers’ Club (ZM Club), Chiarmans’ Club (CM Club), Newly introduced Galaxy club and Corporate Club.

As per the business procured by the agents and club membership conditions, agent gets the club membership for one year from 1st of September to 31st August, and can continue or become member of higher club by continuing or qualifying conditions of higher club.

LIC has also provided some relaxation in these conditions so as to bring new and more agents in these clubs

Relaxation conditions to qualify or continue the club membership in a club

  1. An agent will have to fulfill condition with regard to Renewal Commission and First Year Renewal Commission. However, a shortfall in fulfillment of First Year Commission (paid) condition may be accepted maximum up to 50%, in years to be required for Club Membership, provided it is compensated with the same or higher percentage increase on the basic condition prescribed for Renewal Commission paid
  2. A shortfall in fulfillment of Renewal Commission paid condition may be accepted up to a maximum of 100% in years to be required for Club Membership provided it is compensated with the same or higher percentage increase on the basic condition prescribed for First Year Commission paid. This means a newly appointed LIC agent can aspire to be member of any club from day 1.
  3. If first year lapsation of a continuing club member go above 15%, but other qualifying conditions are fulfilled, then he may be continued in the club but, he will be kept under watch and no fresh advances will be paid. But if a FP lapsation is greater than 15% in a qualifying year for a aspiring club member then that year will not be considered for club membership purpose.
  4. An agent who is club member for a certain club will continue to be in club if he fails to bring minimum net number of lives, if he has completed 5 years in same club then relaxation of 1 year and if club member of certain club for 10 years then relaxation of 2 years. Note: This relaxation is for only minimum net number of lives, agent have to qualify in other conditions.
  5. An agent who has completed the age of 60 years as on the date of commencement of club membership year and had been a continuous member of the same club for not less than 15 membership years can continue the membership of the same club by fulfilling at least 75% of the criteria applicable for that club.

These relaxations are given by LIC to motivate agent, even if agents is not able to do required amount of business (according to above mentioned conditions) due to some unforeseen conditions with him/her.

LIC’s New Plan Jeevan Shikhar (Plan no. 837)

LIC’s New Plan Jeevan Shikhar (Plan no. 837)

LIC, Life Insurance

LIC of India is going to launch a new endowment plan Jeevan Shikhar (Plan No. 837) from 11/01/2016. Jeevan Shikhar is a non linked, with profit, saving cum protection, single premium, Close ended Plan.  In Jeevan Shikhar risk is 10 times of the tabular premium. Unique identification number (UIN) of Jeevan Shikhar plan is 512N305V01.

Death Benefit in  Jeevan Shikhar (Plan No. 837)

On Death during the first 5 Policy years

Before the date of commencement of the Risk: Refund of single premium without interest. Single premium mentioned here will not include any extra amount if charged under the policy due to underwriting decision and taxes.

After date of commencement of Risk: “Sum Assured on Death” equal to 10 times of tabular single premium will be payable.

Also Read: LIC’s New Plan Jeevan Labh (Plan No. 836)

On Death after completion of 5 policy years but before the date of Maturity

“Sum Assured on Death” equal to 10 times of tabular single premium along with Loyalty addition, if any, will be payable.

Tabular single premium calculated for chosen Maturity Sum Assured (MSA), Mentioned above does not include any extra amount chargeable under the policy due to underwriting decision or taxes and is before applying any rebate

Maturity Benefit in  Jeevan Shikhar (Plan No. 837)

On life assured surviving till the end of the policy term, the Maturity Sum Assured (MSA) along with Loyalty addition (LA), if any, will be payable.

Loyalty Addition

The policy under this plan will be eligible for share in surplus (profits) in the form of Loyalty  Addition, depending upon the experience of the LIC. The Loyalty Addition, if any, will be payable on death or surrender, provided the policy run for at least five policy year or on policy holder surviving to the maturity.


Other conditions and policy features of Jeevan Shikhar

  1. Policy can be surrendered at any time during the policy term: First year- 70% of Single Premium,Thereafter-90% of Single premium
  2. Loan facility is available under this plan, after 3 months of the issuance of the policy.
  3. Policy can be taken from back date upto same financial year
  4. Nomination and assignment in this policy is available.
  5. This plan is available for sale upto 31/03/2016.

हिन्दी में पढने के लिये यहाँ क्लिक करें

LIC relaunched its special revival campaign

LIC relaunched its special revival campaign

LIC, Life Insurance

After getting the huge response to its earlier launched Special Revival Campaign from 01/09/2015 to 31/10/2015 which was later extended up to 30/11/2015, LIC of India the state owned insurer again launched it’s Revival campaign from 01/01/2016 to 29/02/2016. In this revival campaign Life Insurance Corporation of India provided some concession in late fee and evidence of health while reviving the policy within this period. It is a very good initiative by Life Insurance corporation of India (LIC).

Policies which are eligible for revival in Revival Campaign

Individual life insurance policies and Health insurance policies are eligible for revival under this campaign.

Individual Policies and Health Policies which are eligible for revival in this revival campaign
  1. Lapsed policies under all type of plans are eligible except Micro insurance Plans. ULIP policies under Plan 802,803,804,811 which are discontinued as per policy conditions are eligible for revival.
  2. Policies which are in lapsed condition for more than 6 months from FUP as on date of revival.
  3. Policies issued through all distribution channels.
  4. Policies which are in lapsed condition during the premium paying term and not completed policy term as on the date of revival.
  5. Policies under Plan 805 and 806 can be revived within 1 year from FUP.
  6. Revival of policies with FUP more than 5 years as on the date of revival will be done as per the rules. However such policies will be eligible for late fee concession.
  7. Policies under all types of Health plans are allowed.
  8. Policies which are in lapsed condition for more than 15 days for Monthly mode/ECS mode and One month for policies with other than monthly mode, but less than 2 years from FUP as on 01.09.2015 will be eligible.

Concession in late fee during revival campaign

The basis for allowing concession in late fee will be the total receivable premium under the policy, as indicated below during this revival campaign.

Total Receivable premium
amount under policy
% of concession
allowed in late fee
Maximum amount of
concession allowed
Upto Rs. 1,00,00020%Rs. 1,500
From 1,00,001 to 3,00,00025%Rs. 2,000
From 3,00,001 and above30%Rs. 2,500
  1. Concession in late fee will be allowed only for policies where policyholder pays all arrears of premium with interest and revival requirements if any, up to the date of revival.
  2. Concession in late fee will be allowed for all types of revival including SB-cum-Revival, Loan–cum-Revival, and Instalment Revival.
  3. Concession in late fee will not be allowed to policies which were revived during the campaigns for revival of lapsed policy in 2013 and two campaigns in 2014, where concession in late fee was granted.
  4. Concession in late fee will also be allowed under policies where no evidence of health will be required i.e spot revival.
  5. Late fee concession will also be allowed where the arrears of premium for revival is in policy deposit and adjustment of the same is done during the campaign period after receipt of revival requirements.
  6. Under some plans like plan 91, 128, 174, 179 wherein the policyholder can pay one or two instalments of premium with interest instead of paying all arrears of premium, concession in late fee will not be allowed for such part payment. Needless to add that if all arrears of premiums with interest are paid during campaign period, then concession in late fee will be allowed as per rule.
  7. For plan 903 and 904 : Waiver of interest of 20% subject to maximum of Rs.1500 under LIC’s Jeevan Arogya plan 903 and 904.
  8. Medical Reports are to be submitted as per existing underwriting rules.
  9. No concession in waiting period for health policies during this revival campaign.

To know more about other details you can read my earlier post: Special campaign for revival of lapsed policies of LIC of India

Refund of Service tax in Varishtha pension Bima yojana

Refund of Service tax in Varishtha pension Bima yojana

Life Insurance

Varishtha Pension Bima Yojana (Plan 828) was launched by Government of India on 15/08/2014 for person aged more than 60 years to provide a social security through lifetime pension to senior citizens. Varishtha Pension Bima Yojana was sold and administered by Life Insurance Corporation of India. From 15/08/2014 to 31/03/2015 service tax at the rate of 3.5% was collected from the customers on premium, which ranged from Rs. 2333 to Rs. 23333. In the Budget 2015 finance minister provided relaxation of service tax on Varishtha Pension Beema Yojana with effect from 01/04/2015.

Image Source: apartmentadda.com

Recently government of India issued a notification for the refund of service tax collected on Varishtha Pension Beema Yojana. And following the government’s directive LIC of India has issued the circular regarding the refund of service tax on varishtha pension bima yojana.

How the customer will get the service tax back in Varishtha Pension Bima Yojana

LIC of India has made the provision for ONE TIME Refund of Service Tax under Varishtha Pension Bima Yojana (Plan 828) policies, issued from 14/8/2014 to 31/03/2015 as follows :

  1. IPP Cells of LIC of India: Will refund Service tax for policies surrendered and also policies where annuity is being paid
  2. Branch Offices of LIC of India: will refund Service tax for policies where Death Claim have been paid under Varishtha Pension Bima Yojana Policies, the payment of which will be in favour of Nominee.

Policy holders of varishtha pension bima yojana (Plan 828) will get  the intimation related to refund of service tax. Refund will be made through NEFT to the account registered with LIC of India.