LIC important Points

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LIC important Points
 What is Life Insurance?

Admission Of Age:

Age is the main basis of calculation of premium under life insurance policies. The
following are accepted as evidence of age:

Certified extract from Municipal or Local Bodyís records made at the time of birth.
Certificate of Baptism or Certified Extract from Family Bible, if it contains age or
date of birth.
Certified Extract from School or College records, if age or date of birth is stated
Certified Extract from Service Register in the case of Govt. employees and employees
of Quasi-Govt. Institutions or
Passport issued by the Passport Authorities in India.

Payment Of Premium:

By cash, local cheque (subject to realization of cheque), Demand Draft at Branch
The DD and cheques or Money Order may be sent by post.
You can pay your premiums at any of our Branches as 99% of our Branches are

Many Banks do accept standing instructions to remit the premiums. So by providing a
standing instruction to your Bank to debit your account for the premium amount and
send it vide a bankerís cheque to LIC, on the due dates and months mentioned on your
policy bond.

Through Internet : Payment of premiums can be made through Internet through Service
Providers viz.HDFC Bank, ICICI Bank, Times of Money, Bill Junction, UTI Bank, Bank of
Punjab, Citibank, Corporation Bank, Federal Bank and BillDesk.
Premium payment can also be made through ATMs of Corporation Bank and UTI Bank.
Premium payment can also be made through Electronic Clearing Service (ECS) which has
been launched at Mumbai, Hyderabad, Chennai, Kolkata, New Delhi, Kanpur, Bangalore,
Vijaywada, Patna, Jaipur, Chandigarh, Trivandrum, Ahmedabad, Pune, Goa and Nagpur,
Secunderabad & Visakhapatnam. A policyholder having an account in any Bank which is a
Member of the local Clearing House can opt for ECS debit to pay premiums. The
policyholders wishing to use this system would have to fill up a Mandate Form
available at our Branches/DO and get it certified by the Bank. The certified Mandate
Forms are to be submitted to our BO/DO.

Policy can be anywhere in India.

Citibank Kiosks at Industrial Assurance Building, Churchgate, New India Building,
Santacruz, Jeevan Shikha Building, Borivili are dedicated for collection of premiums
through cheques.

Days Of Grace:

Policyholder should pay the premiums on due dates. However, a grace period of one
month but not less than 30 days will be allowed for payment of yearly/half-
yearly/quarterly premiums and 15 days for monthly premiums.
When the days of grace expire on a Sunday or a public holiday, the premium may be
paid on the following working day to keep the policy in force.
If the premium is not paid before the expiry of the days of grace, the policy lapses.

Revival Of Lapsed Policy:

If the policy has lapsed, it can be revived during the life time of the life assured,
within a period of five years from the date of the first unpaid premium but before
the date of maturity subject to certain conditions.
The Corporation offers three convenient schemes of revival viz., Ordinary Revival,
Special Revival and Installment Revival. Policies can also be revived under Loan-
cum-Revival and SB-cum-Revival schemes.
Request for revival may be made to the Branch Office servicing the policy.

Change Of Address And Transfer Of Policy Records:

The policyholder should immediately intimate the change of his/her address to the
Branch Office servicing the policy. The correct address facilitates better service
and quicker settlement of claims.
Policy records can also be transferred from one Branch Office to another for
servicing, as requested by the policyholder.

Loss Of Policy Document:

The Policy Document is an evidence of the contract between the Insurer and the
Insured. Hence the policyholder should preserve the Policy Bond till the contracted
amount under it is settled.
Loss of the Policy Document should be immediately intimated to the Branch Office
where it is serviced.


Loans are granted on policies to the extent of 90% of Surrender Value of the policies
which are in force and 85% of the Surrender Value in case of policies which are
paid-up, inclusive of the cash value of bonus. The rate of interest charged at
present is 9% p.a. payable half-yearly.
Loans are not granted for a period shorter than six months. The Conditions and
Privileges printed on the back of the Policy Bond states whether a particular policy
is with or without the loan facility.

Relief To Policyholders:

The Corporation generally allows concessions on payment of premiums, settlement of
claims, issue of duplicate policies, etc when the policyholder are affected by
natural calamities such as droughts, cyclones, floods, earthquakes, etc.


Nomination is a right conferred on the holder of a Policy of Life Assurance on his
own life to appoint a person/s to receive policy moneys in the event of the policy
becoming a claim by the assuredís death. The Nominee does not get any other benefit
except to receive the policy moneys on the death of the Life Assured. A nomination
may be changed or cancelled by the life assured whenever he likes without the consent
of the Nominee.
Ensure nomination exists in the policy for easy settlement of claims.


Assignment means transfer of rights, title and interest. When an assignment is
executed, all rights, title and interest in respect of the property assigned are
immediately transferred to the Assignee/s and the Assignee/s become the owner/s of
the policy subject to any lawful condition made in the assignment.
Assignment can be either conditional or absolute. On assignment (other than to LIC),
Nomination automatically stands cancelled. Hence, when such a policy is reassigned,
the policyholder will have to make a fresh nomination to avoid delay in settlement of

Survival Benefit/Maturity Claims:

LIC settles survival benefit/maturity claims on or before the due date.
Policyholder are intimated well in advance by the Branch Office which services the
policy regarding the payment, and the necessary Discharge Voucher is also sent for
execution by the assured. In case the policyholder does not get any intimation from
the Branch Office concerned, he/she should contact them, quoting the Policy Number.
Survival Benefit payment up to Rs.60,000/- are settled without insisting for Policy
Bond and Discharge Voucher.

Death Claims:

If the life assured dies during the term of the policy, death claim arises. The death
of the policyholder should be immediately intimated in writing to the Branch Office
where the policy is serviced along with the following particulars:
The No./s of the policy/ies
The name of the policyholder
Death Certificate issued by concerned Authority
The date of death
The cause of death and
Claimantís relationship with the deceased
On receipt of the intimation of death, necessary claim forms are sent by the Branch
Office for completion along with instructions regarding the procedure to be followed
by the claimant.
The claims which have arisen after a period of three years are treated as non-early
claims and settled within 30 days from the date of receipt of all requirements.
The claims that have arisen within a period of two years from the date of
commencement of the policy, are treated as early claims and investigation is
compulsory in such cases.
The claim is usually payable to the nominee/assignee or the legal heirs, as the case
may be. However, if the deceased policyholder has not nominated/assigned the policy
or if he/she has not made a suitable provision regarding the policy moneys by way of
a Will, the claim is payable to the holder of a Succession Certificate or some such
evidence of title from a Court of Law.
The Corporation grants claims concessions under certain Plans whereby payment of full
sum assured is made, subject to the deduction of unpaid premiums with interest till
the date of death and unpaid premiums falling due before the next anniversary of the
policy, in the event of the death of the life assured within a period of six months
or one year from the date of the first unpaid premium, provided premiums have been
paid for at least three years and five years respectively.
Claim Review Committee:
The Corporation settles a large number of Death Claims every year. Only in case of
fraudulent suppression of material information is the liability repudiated. This is
to ensure that claims are not paid to fraudulent persons at the cost of honest
policyholders. The number of Death Claims repudiated is, however, very small. Even in
these cases, an opportunity is given to the claimant to make a representation for
consideration by the Review Committees of the Zonal office and the Central Office. As
a result of such review, depending on the merits of each case, appropriate decisions
are taken. The Claims Review Committees of the Central and Zonal Offices have among
their Members, a retired High Court/District Court Judge. This has helped providing
transparency and confidence in our operations and has resulted in greater
satisfaction among claimants, policyholders and public.

Insurance Ombudsman:

The Grievance Redressal Machinery has been further expanded with the appointment of
Insurance Ombudsman at different centers by the Government of India. At present there
are 12 centres operating all over the country.
Following type of complaints fall within the purview of the Ombdusman
a) any partial or total repudiation of claims by an insurer;
b) any dispute in regard to premiums paid if payable in terms of the policy;
c) any dispute on the legal construction of the policies in so far as such disputes
relate to claims;
d) delay in settlement of claims;
e)non-issue of any insurance document to customers after receipt of premium.
Policyholder can approach the Insurance Ombudsman for the redressal of their
complaints free of cost.

Initiatives In Policy Servicing Areas:

All 2048 Branches of LIC are fully computerized covering all policy servicing aspects
to give prompt computerized services from new policy introduction, acceptance of
renewal premium, revivals, loans, etc to final claims settlement.
Green Channel facility has been introduced for the speedy completion of proposals.
Payment of premiums can be made through internet through service providers, viz.,
HDFC Bank, ICICI Bank, Times of money, Bill Junction, UTI Bank, Bank of Punjab,Citi
Bank, Corporation Bank, Federal Bank and Billdesk.
Grievance Redressal Machinery:

A machinery for redressal of policyholders� grievances exist in all the offices of
the Corporation. These are headed by designated Officers who are available at their
respective Offices every Monday between 2.30 pm and 4.30 pm. except holidays.
Policyholder can approach these officers to get their grievances redressed.
The Designated Officers at the various offices of the Corporation are :
At Branch Office --- Sr./Branch Manager
At Divisional Office --- Marketing Manager
At Zonal Office --- Regional Manager (Mktg)
At Central Office --- Executive Director (Mktg/IO/CRM)

Citizensí Charter:

Citizens' Charter was presented to the Nation in November, 1997. In the Charter the
bench marks were prescribed for 30 servicing areas.


(You have to register for these services)
LIC has given its policyholders a unique facility to pay premiums through Internet


absolutely free and also view their policy details on Internet premium payments. There
are 11 service providers with whom L I C has signed the agreement to provide this