INSURANCE KNOWLEDG E

FOR LIC AAO EXAM

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WHAT IS LIFE INSURANCE

Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during the date of maturity or specified date at periodical intervals or unfortunate death, if it occurs earlier.
HISTORY OF LIFE INSURANCE

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance ompany, started !y Europeans in alcutta, "as the first life insurance company on Indian #oil. Later, the foreign life insurance companies started insuring Indian lives. $om!ay %utual Life &ssurance #ociety heralded the !irth of first Indian life insurance company in the year 18'(. $harat Insurance nationalism. ompany (18)*) "as also one of such companies inspired !y

The +nited India in %adras, ,ational Indian and ,ational Insurance in alcutta and the o-operative &ssurance at Lahore "ere esta!lished in 1)(*. In the year 1)1., the Life Insurance "ere passed. ompanies &ct, and the /rovident 0und &ct

Insurance &ct 1)18 "as the first legislation governing not only life insurance !ut also non-life insurance to provide strict state control over insurance !usiness. To amend the Life Insurance &ct 1)18, in 1)22 a !ill "as introduced in the Legislative &ssem!ly. On 1)th 3anuary 1)4*, life insurance in India "as nationali5ed. &!out 142 Indian insurance companies, 1* ,on-Indian companies and '4 /rovident "ere operating in India at the time of nationali5ation. The /arliament of India passed the Life Insurance orporation &ct on 1)th 3une 1)4* and the Life Insurance orporation of India "as created on 1st #eptem!er 1)4*, "ith the o!6ective of spreading life insurance much more "idely and in particular to the rural areas to reach all insura!le persons in the country, providing them ade7uate financial cover at a reasona!le cost. LI had 4 5onal offices, 11 divisional offices and .1. !ranch offices, apart from its corporate office in the year 1)4*.
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8e-organi5ation of LI opened.

too9 place and large num!ers of ne" !ranch offices "ere

Today LI functions "ith .(28 fully computeri5ed !ranch offices, 1() divisional offices, 8 5onal offices, )). satallite offices and the orporate office. LI :s ;ide &rea ,et"or9 covers 1() divisional offices and connects all the !ranches through a %etro &rea ,et"or9. LI has tied up "ith some $an9s and #ervice /roviders to offer on-line premium collection facility in selected cities. LI to ta9e this message of protection to light the lamps of security in as many homes as possi!le and to help the people in providing security to their families.
SOME IMPORTANT MILESTONES IN LIFE INSURANCE BUSINESS IN NDIA

1#1# 1 Oriental Life Insurance ompany, the first life insurance company on Indian soil started functioning. 1#70 1 $om!ay %utual Life &ssurance #ociety, the first Indian life insurance company started its !usiness. 121! 1 The Indian Life &ssurance regulate the life insurance !usiness. ompanies &ct enacted as the first statute to

12!# 1 The Indian Insurance ompanies &ct enacted to ena!le the government to collect statistical information a!out !oth life and non-life insurance !usinesses. 12"# 1 Earlier legislation consolidated and amended to !y the Insurance &ct "ith the o!6ective of protecting the interests of the insuring pu!lic. 1256 1 .24 Indian and foreign insurers and provident societies are ta9en over !y the central government and nationalised. LI formed !y an &ct of /arliament, vi5. LI &ct, 1)4*, "ith a capital contri!ution of 8s. 4 crore from the <overnment of India. The <eneral insurance !usiness in India, on the other hand, can trace its roots to the Triton Insurance ompany Ltd., the first general insurance company esta!lished in the year 184( in alcutta !y the $ritish.
SOME IMPORTANT MILESTONES IN GENERAL INSURANCE BUSINESS IN INDIA

1207 1 The Indian %ercantile Insurance Ltd. set up, the first company to transact all classes of general insurance !usiness. 1257 1 <eneral Insurance ouncil, a "ing of the Insurance &ssociation of India, frames a code of conduct for ensuring fair conduct and sound !usiness practices. 126# 1 The Insurance &ct amended to regulate investments and set minimum solvency margins and the Tariff &dvisory ommittee set up. 127! 1 The <eneral Insurance $usiness (,ationalisation) &ct, 1)'. nationalised the general insurance !usiness in India "ith effect from 1st 3anuary 1)'1. 1(' insurers amalgamated and grouped into four companies vi5. the ,ational Insurance ompany Ltd., the ,e" India &ssurance ompany Ltd., the
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Oriental Insurance ompany Ltd. and the +nited India Insurance Ltd. <I incorporated as a company.
SOME SHORT FORMS # (#tatutory ompany) / (/u!lic ompany) / (/rivate ompany) LI (Life Insurance orporation of India) =O (=evelopment Officer) &=O (&ssistant =evelopment Officer) %0 (%utual 0und) I8=& (Insurance 8egulatory and =evelopment &uthority) <>I/ (<roup >ealth Insurance /olicy) I>I/ (Individual >ealth Insurance /olicy) <roup >ealth Insurance /olicy ds fy, u;k jsxqysku 01@07@13 ls Individual >ealth Insurance /olicy ds fy, u;k jsxqysku 01@10@13 ls

ompany

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jde dh iquI okilh ds fy, 6hou chek fuxe dh ik9fylh+ 6hou /kkjk+ 6hou *,k;

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INSURANCE PLANS OF LIC

$ima &ccount /lan 1 and ., Endo"ment /lus, >IL=8E, /L&,# 3eevan &nurag, 3eevan ?ishore, hild areer /lan, hild 0uture /lan, 3eevan &n9ur, ?omal 3eevan, 3eevan hhaya, Educational &nnuity /lan /L&,# 0O8 >&,=I &//E= =E/E,=E,T# 3eevan &adhar, 3eevan @ish"as E,=O;%E,T &##+8&, E /L&,# The Endo"ment &ssurance /olicy, 3eevan ,e" 3anara9sha /lan, 3eevan &mrit, 3eevan #ugam /L&,# 0O8 >I<> ;O8T> I,=I@I=+&L# 3eevan #hree, 3eevan /ramu9h %O,EA $& ? /L&,# 3eevan #ura!hi, $ima $achat, 3eevan $harati (for ;omen) ;>OLE LI0E /L&,# 3eevan &nand, 3eevan Tarang TE8% &##+8&, E /L&,# &nmol 3eevan, &mulya 3eevan 3OI,T LI0E /L&, 3eevan #aathi
PENSION PLANS OF LIC

%itra,

3eevan

&nand,

3eevan &9shay, ,e" 3eevan ,idhi

UNIT PLANS OF LIC

Endo"ment /lus, 0leBi /lus

SPECIAL PLANS OF LIC

,e" $ima <old, $ima ,ivesh, 3eevan #aral, 3eevan %adhur, 3eevan %angal, 3eevan =eep
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HEALTH PLANS OF LIC

>ealth /rotection /lus, 3eevan &rogya

GROUP SCHEMES OF LIC

<roup Term Insurance #chemes, <roup Insurance #cheme in Lieu o 4 E056.7889& D85.&,: L,+;8) I+&<='+-8 (EDLI , <roup <ratuity #cheme, <roup #avings Lin9ed Insurance #cheme , <roup Leave Encashment #cheme, <roup %ortgage 8edemption &ssurance #cheme, <roup ritical Illness 8ider, 3ana #hree $ima Ao6ana, #hi9sha #ahayog Ao6ana, &am &dmi $ima Ao6ana
WITHDRAWN PLANS OF LIC

3eevan ,ischay, ;ealth /lus, 3eevan &astha, 3eevan @arsha, 0ortune /lus, >ealth /lus, /ension /lus, ,e" 3eevan =hara, 3eevan @riddhi, %ar9et /lus, /rofit /lus, %oney /lus, hild 0ortune /lus, 3eevan #aathi /lus, #amridhi /lus, 3eevan ,idhi, ,e" 3eevan #ura9sha, 3eevan @ai!hav
MONO OF LIC

MEANING OF MONO OF LIC

& palm covering the lamp. It means providing support and light in adverse conditions.
PUNCHLINE OF LIC

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MEMBERS OF THE BOARD OF DIRECTORS OF LIC
S*=, D%>% M8*=.:=', ( >&I8%&,, LI ) S*=, T*.0'& M':*8$ T% (%anaging =irector, LI ) S*=, S<&*.(*'+ S'=;8= (%anaging =irector, LI ) S*=, A=?,+) M'7'='0 (#ecretary, =epartment of Economic &ffairs, %inistry of 0in., <OI) S*=, R'@,? T';=< (#ecretary, =epartment of 0inancial #ervices, %inistry of 0inance, <OI) S*=, A%>% R.7 ( hairman cum %anaging =irector, <I ) S*=, M%V% T'+;&'68 ( hairman C %anaging =irector, entral $an9 of India ) S*=, A+<5 P=';'&* G'=/, S*=, S'+@'7 J',+, S*=, A&*.; S,+/*, S*=, >%S% S'05':*, S*=, A0'=)885 S,+/* C*880', S0:% M'+@'=, >'-;'=

FOREIGN UNITS OF LIC

+nited ?ingdom (England), #hrilan9a, 0i6i, %auritius, $ahrain, ,epal, ?enindia &ssurance, #oudi Indian ompany for o-operative Insurance (#I I)
AWARDS RECEIVED BY LIC IN 2011-12
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8eaders =igest , S<58=(='+)&, A&,'+ L8')8=&*,5 A$'=)&, ET B='+) EA<,:7B& M.&: T=<&:8), CNBC ACAAD, D',+,; B*'&;'= G=.<5, B.0('7 C*'0(8= .4 C.008=-8, ABCI, S:'= N8$& - C<&:.08= C8+:=,- B='+) A$'=)
INSURANCE COMPANIES

PUBLIC SECTOR (<overnment of India fully o"ned 2 companies) ,ational Insurance o Ltd, ,e" India &ssurance o Ltd, Oriental Insurance o Ltd, +nited India Insurance o Ltd PRIVATE SECTOR $a6a6 &llian5 <eneral Insurance, $harti &D& <eneral Insurance, holamandalam %#, 0uture <enerali India Insurance, >=0 E8<O <eneral Insurance, I I I Lom!ard, I00 O To9io, Li!erty @ideocon <eneral Insurance o Ltd, L C T <eneral Insurance, %agma >=I <eneral Insurance o Ltd, %aB Life Insurance o Ltd, 8ahe6a E$E <eneral Insurance, 8eliance <eneral Insurance, 8oyal #undaram, #$I <eneral Insurance, #hriram <eneral Insurance, Tata &I< (&merican International <roup) <eneral, +niversal #ompo <eneral Insurance STAND ALONE HEALTH INSURANCE COMPANIES PRIVATE SECTOR &pollo %unich >ealth Insurance %aB $upa >ealth Insurance 8eligare >ealth Insurance ompany Ltd #tar >ealth and &llied Insurance company Ltd EXPORT CREDIT GUARANTEE INSURANCE COMPANIES PUBLIC SECTOR EBport redit <uarantee orporation of India AGRICULTURE INSURANCE COMPANIES &griculture insurance co.of India Ltd. LIFE INSURANCE COMPANIES PUBLIC SECTOR (<overnment of India fully o"ned 1 company) Life Insurance orporation of India PRIVATE SECTOR &E<O, 8eligare Life Insurance, &viva Life, #hriram Life Insurance, $a6a6 &llian5 Life Insurance, $harti &D& Life Insurance o Ltd, $irla #unlife, anara >#$ Oriental $an9 of ommerce Life Insurance, #tar +nion =ai-ichi Life Insurance, =L0(=elhi Land C 0inance) /ramerica Life Insurance, Edel"eiss To9io Life Insurance o. Ltd, 0uture <enerali Life Insurance o Ltd, >=0 #tandard Life Insurance ompany Limited, I I I /rudential, I=$I 0ortis Life Insurance, India 0irst Life Insurance ompany, I,< (International ,etherlands <roup) @ysya Life Insurance, ?ota9 Life Insurance, %aB Life Insurance, /,$ %et Life India Life
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Insurance, 8eliance Life Insurance ompany Limited, #ahara Life Insurance, #$I Life Insurance ompany Limited,T&T& &I<(&merican International <roup) Life Insurance

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