Modifications - Profit Plus (188)

_{LIC’s Profit Plus (Plan No. 188)}

I. MODIFICATIONS UNDER THE PLAN:

_{Under Limited premium paying term policies:}

a) Minimum Premium:

EXISTING	MODIFIED
Other than monthly ECS mode: Rs. 10,000 p.a. Monthly ECS mode: Rs. 1,000 p.m.	Other than monthly ECS mode: Rs. 15,000 p.a. Monthly ECS mode: Rs. 1,500 p.m.

b) Minimum / Maximum Sum Assured:

EXISTING	MODIFIED
5 times the annualized premium or half of the policy term times the annualized premium whichever is higher	5 times the annualized premium

c) Maximum Maturity Age:

_{3 years premium payment:}

EXISTING	MODIFIED
70 years nearest birthday	75 years nearest birthday

d) Policy Term:

_{3 years & 4 years premium payment:}

EXISTING	MODIFIED
5 years to 20 years	10 years to 20 years

5 years premium payment:

EXISTING	MODIFIED
5 years to 20 years	10 years & 15 to 20 years

e) Premium Allocation Charge:

_{3 years & 4 years premium payment:}

Existing			Modified
Premium Band (per annum)	First year	Thereafter	Premium Band (per annum)	First year	Thereafter
10,000 to 1,50,000	10.50%	2.50%	15,000 to 1,50,000	10.50%	2.50%
1,50,001 to 3,00,000	10.00%	2.50%	1,50,001 to 3,00,000	10.00%	2.50%
3,00,001 to 4,50,000	9.50%	2.50%	3,00,001 to 4,50,000	9.50%	2.50%
4,50,001 and above	9.00%	2.50%	4,50,001 and above	9.00%	2.50%

5 years premium payment:

Existing			Modified
Premium Band (per annum)	First year	Thereafter	Premium Band (per annum)	First year	Thereafter
10,000 to 1,50,000	24.00%	4.00%	15,000 to 1,50,000	24.00%	4.00%
1,50,001 to 3,00,000	23.50%	4.00%	1,50,001 to 3,00,000	23.50%	4.00%
3,00,001 to 4,50,000	23.00%	4.00%	3,00,001 to 4,50,000	23.00%	4.00%
4,50,001 and above	22.50%	4.00%	4,50,001 and above	22.50%	4.00%

f) Accident Benefit Rider:

	EXISTING	MODIFIED
Maximum Entry Age	65 Yrs	60 Yrs
Policy Term for PPT 3 & 4 yrs	5 to 20 Yrs	10 to 20 Yrs
Policy Term for PPT 5 yrs	5 to 20 Yrs	10 & 15 to 20 Yrs

_{g) Critical Illness Rider:}

	EXISTING	MODIFIED
Policy Term for PPT 5 yrs	10 to 20 Yrs	10 & 15 to 20 Yrs

Under Single premium policies:

_{Minimum Premium:}

EXISTING	MODIFIED
Rs. 20,000	Rs. 40,000

Under Limited premium paying policies and Single premium policies:

_{a) Fund Management Charge:}

	EXISTING	MODIFIED
Bond Fund	0.75 % p.a.	0.50 % p.a.
Secured Fund	1.00 % p.a.	0.60 % p.a.
Balanced Fund	1.25 % p.a.	0.70 % p.a.
Growth Fund	1.50 % p.a.	0.80% p.a.

b) Right to revise charges:

_{Fund Management Charge: The Maximum for each Fund will be as follows:}

	EXISTING	MODIFIED
Bond Fund	1.50 % p.a.	1.00 % p.a.
Secured Fund	2.00 % p.a.	1.10 % p.a.
Balanced Fund	2.50 % p.a.	1.20 % p.a.
Growth Fund	3.00 % p.a.	1.30 % p.a.

c) Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS

monthly. For monthly (ECS), the instalment premium shall be in multiples of Rs. 250/-.

_{II. FUND MANAGEMENT CHARGE UNDER EXISTING POLICIES:}

With effect from 1^st January 2010 under all the existing policies of LIC’s Profit Plus plan (i.e. policies taken prior to 1^st January 2010) the fund management charges shall be at the revised rates as applicable in case of the policies issued with effect from 1^st January 2010.

III. POLICY DOCUMENT:

Existing Policy Document shall be used with the following modifications:

 New UIN (Unique Identification Number).

_{ An endorsement shall be required to be attached as per Annexure – I enclosed.}

The relevant items in the existing policy bond corresponding to the items given in the endorsement shall be required to be cancelled.

Needless to add, at the time of fresh printing of policy document these changes shall need to

be incorporated.

IV. PROPOSAL FORM:

Existing Proposal Form shall be used after modifying the UIN (Unique Identification

Number). Further, it has been decided to add another question as given below. The same may be added while printing the new proposal form. For existing stock of proposal forms a rubber stamp may be used to add the question.

Question 4 c) Is your life now being proposed for another assurance or an application for revival of a policy on your life or any other proposal under consideration in any office of the corporation or to any other insurer? If yes, give details.

All other terms and conditions of the plans shall remain unchanged.

These modifications will come into force with effect from 1^st January 2010.

Private Life Insurance Companies are Still MINUS

The insurance sector is making a strong comeback. Buoyed by a steep rise in sale of single premium policies, the industry clocked a 53.25 per cent rise in November. 

While the rise was driven by the 78.65 per cent increase in Life Insurance Corporation of India’s (LIC’s) first premium income, the private sector, which was seeing a decline in income from sale of new policies, clocked a 16.64 per cent rise in November, the latest data released by the Insurance Regulatory and Development Authority (Irda) today showed.

During November 2009, LIC mopped up first premium income of Rs 5,978.37 crore, as against Rs 3,346.39 crore in the corresponding period last year. Private insurance companies collected Rs 2689. 74 crore during November 2009.

HIGH INFLOWS New business premium income collection
Insurers	April-November		% change
	2,008	2009
LIC	25,220.62	36,449.49	44.52
SBI Life	3,291.98	3,524.31	7.06
ICICI Prudential	4,248.25	3,031.90	-28.63
Bajaj Allianz	2,670.24	2,090.21	-21.72
Reliance Life	1,950.64	1,746.93	-10.44
HDFC Standard Life	1,641.68	1,607.56	-2.08
Birla SunLife	1,528.37	1,588.49	3.93
Private total	20,117.49	18,907.60	-6.01
Total	45,338.10	55,357.09	22.10
Source: Irda                                                           (Figures in Rs cr)

For the eight months up to November, LIC’s growth was 44.5 per cent, while private sector insurers continue to be in red. New premium income of private players fell 6 per cent in the first eight months of the current financial year, though the pace of decline had dropped from the level seen last month. The growth of the entire sector till November was 22 per cent (see table).

While new premium growth of most large private insurers in the first eight months declined, SBI Life Insurance managed to grow at 7 per cent. ICICI Prudential Life registered the steepest fall with its first year premium declining 28.63 per cent, followed by Bajaj Allianz (a fall of 21.72 per cent).

So far this year, growth has been faster than the 15 per cent projected for 2009-10, and with insurance companies predicting a stronger comeback in December and the fourth quarter, the life insurance industry could post a decent growth. During the last financial year, the sector had seen a 6 per cent decline in new premium income.