Pay LIC PREMIUM by Net Banking

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New initiative of LIC Of INDIA
to enhance the facility of online payment of renewal premium to LIC policyholders, a new option under the generic term “INSTAPAY Service” which is available across all banking platforms in India has been integrated through the existing Bill desk supported platform .

This is an existing user friendly service on the banking applications of scheduled banks widely used by bank customers to pay their bills.

Briefly , the service in the perspective of renewal premium payment of LIC policies will function as under :

  • The customer will open the website of his / her bank in the browser OR invoke the Banking App on his / her mobile device

  • SELECT ‘Pay Bills’

  • Choose “insurance” as the category of Biller

  • Click on “Insurance” and view the list of insurance companies in drop down menu

  • Click on ‘Life Insurance Corporation Of India”

  • Proceed by keying in the policy number , name ,email address, mobile number . The premium due dates , total amount due ( with GST , late fee if any ) is fetched from the LIC customer portal and displayed to the customer.

  • The online payment happens from the net banking enabled account of the customer instantly on clicking “submit”.

  • The limit for making payment through the Instapay facility is Rs.50000.00 per transaction.

  • There are NO charges for the transaction.

  • E receipt is emailed to the email address of the customer keyed in at the time of initiating the transaction in the display screen

  • There is an option to download the e receipt as a pdf onto the customer’s device

We are attaching screenshots of a sample transaction done live in production environment through a bank account on the HDFC application as a display

Presently this service is facilitated through 24 scheduled banks ( Listed below)

Bank Name Status

  • Allahabad Bank

  • Bandhan Bank

  • Bank of India

  • Canara Bank

  • Catholic Syrian Bank

  • Central Bank of India

  • Central Union Bank

  • Dena Bank

  • Deutsche Bank

  • Dhanlaxmi Bank

  • HDFC Bank

  • ICICI Bank

Confirmation pending from bank name list

  • IDBI Bank

  • India Overseas Bank

  • Jammu and Kashmir Bank

  • Karnataka Bank

  • Punjab National Bank

  • RBL Bank

  • Saraswat Bank

  • State bank of India

  • Syndicate Bank

  • UCO Bank

  • United Bank of India

  • Yes Bank

Renewal Premium Collection of LIC of INDIA

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Renewal of LIC Premium payment:

When you purchase a new policy from LIC OF INDIA ,You pay premium, that is first premium .

But making second payment of premium whichever mode like yearly,half yearly , quarterly etc will be your renewal of premium payment.

As you know LIC has purchased stakes of IDBI BANK, so now some banking part will done by IDBI bank.

Renewal Premium Collection

LIC is collecting LIC Policy premium by several modes like ,LIC Branch, Online, Customer Zone, Premium Point etc

Now a new update :

Renewal Premium Collection in Branch Offices of IDBI Bank is effective from February 28th 2019.So now customers can pay renewal premium of LIC policies at all 1886 Branches of IDBI Bank.

Premiums can be paid in cash (up to Rs. 49999) and through cheques drawn on IDBI Bank.

Death claim analysis of All life insurance company in 2017-208

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It always a question which is good insurance company for claim settlement and good for buying. More over all indian insurance company doing publicity that they have better insurance plan than others.

Customer get confused while taking decision to select any one.It is the best way to recognize the best insurance company in india by Reading death claim settlement Chart from IRDA portal.

Observation From IRDA CHART on death claim:

  • Private Companies has repudiated claims under 4328 policies out of 108904 policies (3.97) against just 4958 policies out of 739082 policies (0.673%) by LIC of lndia .
  • Persentage of Claim Amount Repudiated by Private Companies is 7.79% against just 1.71% by LIC of India; this shows that more High Sum Assured claims are being repudiated by private companies.

For example:

HDFC Life-8.59%

Bajaj Allianz – 7.34%

SBI life-5.56%

ICICI Prudential- 5.56%

For some of the other compaines’repudiation percentage ( % )is even higher. Refer above chart.

New customer service form LIC OF INDIA

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Life Insurance Corporation (LIC) of India is going start sending sms to message customer from the March 1, 2019, the policyholders will get automated SMS to update their customers regarding politics payment due, lapsation,revival ,surrender and maturity also.

One will get SMS, Like

“Dear Customer, we inform you that LIC will send Premium Due Intimations and reminders for your Policy Number xxxxxxxx by SMS only, with effect from 01.03.2019.”

If you have not received this SMS, it means your mobile number is not registered with LIC politics.

It is very easy to register your Mobile number with LIC of India,you may call to LIC agent to whom you have purchased politics.

If your agent is not in contact with you then you can go to LIC branch and submit letter to update it.

You may also do it online by visiting www.licindia.in/Customer-Services

or by calling 24×7 helpline number 022-68276827.

The corporation will send about 65 such messages, apart from reminder for premium payment, in case of a policy gets lapsed, revived or foreclosed, a policy bond is dispatched,bonus or loyalty is added, NEFT or NACH mandate is registered or rejected, maturity amount becomes due or paid and even greeting message on New year etc.

LIC CUSTOMER CARE

Earlier you had to either depend to your LIC AGENT or you have to call customer care in office hour for the sake of finding information about your LIC plan.

Now it’s a great initiative that Customer care help available for round the clock.

24×7 helpline number 022-68276827.

LIC Customer Portal:

If your tecno sevy and want to know every time regarding bonus accrued , surrender value,loan available, premium paid certificate ,to pay your premium online etc, you can enroll your LIC POLITICS in customer portal what you may find on LIC website.

3 things is necessary to enroll your policy

  1. Your Premium amount without service tax.
  2. Your date of birth
  3. Your LIC POLICY number

LIC CUSTOMER ZONES:

Thare are still few services which is directly related to parent branch. Parent branch are those ,from whare you brought your politics. If you see you original LIC bond paper you can easily find LIC branch number. Through such branch number you can find address. There you must have to visit for few services like Nominee change,revival of your politics etc.

You might find uncomfortable to visit there ,as if you have changed your city etc.

Now LIC has established customer zone which is near you and you can get any kind of services there without visiting parent branch.

Deduction allowable from income for Payment of life Insurance Premium section 80c

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a) life insurance premium paid in order to effect or to keep in force an insurance on the life of assessee or the life of the spouse or any child of assessee and in the case of h u f, premium paid on the life of any member thereof under an insurance policy (other than a contract for a deferred annuity), issued on or before the 31st day of March 2012 shall be eligible for deduction only to the extent of 20% of the actual capital sum assured or actual premium paid whichever is less.
b) life insurance premium paid in order to effect or to keep in force an insurance of the life of the assessee or on the life of the spouse or any child of assessee and in the case of HUL , premium paid on the life of any member thereof , under an insurance policy( other than a contract for and deferred annuity) , issued on or after the 1st day of April 2012 shall be eligible for deduction only to the extent of 10% of the actual capital sum assured aur actual premium paid whichever is less.
Where the policy, issued on or after the first day of april, 2013, is for insurance on life of any person .
Who is—
i) a person with disability aur a person with severe disability as referred to in section 80u, or
ii) suffering from disease or ailment as a specified in under section 80dd b, deduction under the section is allowed only to the extent of 15% of the actual capital sum assured or actual premium paid whichever is less.
c) contribution to deferred annuity plans in order to effect or to keep in force a contract for deferred annuity, on his own life or the life of his spouse or any child of such individual is eligible for deduction, provided such contract does not contain a provision to exercise an option by the insured to receive cash payment in lieu of the payment of annuity.
d) contribution to annuity plans lIC new Jeevan Dhara and and new Jeevan Akshay is eligible for deduction.NOTE: The aggregate amount of deduction under section 80c, 80ccc and 80ccd (1) shall not not in any case exceed 150000 rupees.
PROOF OF INCOME 
The following documents can be considered as proof of income:
  1. Salary Certificate 
  2. Personal Financial Questionnaire 
  3. Chartered Accountant’s Certificate 
  4. Income Tax Returns (ITRs) with computation of income statement of Income Tax Orders 
  5. Audited Company/ Firm Accounts including Profit & Loss Accounts. 
    Bank’s Statements (Pass Book)
  6. The land revenue records in form of 7/12 extracts certificate from Tahasildar regarding crop pattern indicating crop yield, whenever source of income is shown as agriculture.
  7.  Whenever income from export is indicated in proposal form / I.T. returns/ Computation of income/ CA’s certificate, then income certificate in the form of report under 80 HHC and Form No. 10 CCAC duly completed and attested should be obtained. 
 
Proof of Income to be submitted depends on the total rated up sum assured as shown below: 
 
 
 
Total rated up sum assured mentioned above for the purpose of calling for proof of income will be calculated as under :-
Total rate up sum assured on the life of the proposer
  • Total rated up insurance on the lives of all children aged up to 25 (financed by parents)
  • Total rated up insurance on the life of wife (financed by husband up to a maximum of Rs. 30 lacs)/ total rated up insurance on the life of husband (proposed and financed by wife) +Total rated up credit given to sons and unmarried daughters aged more than 25 years. In the case of proposals on the lives of children aged upto 25, proof of income of the personal (father or mother) funding the insurance is to be called for.

The proof of income will depend on the total rated up sum assured calculated as above. In the case of proposals on the lives of married women on the basis of husband’s income, proof of income of the husband is to be called for. The proof of income will depend on the total rated up sum assured calculated as above. Income shown in the Income tax returns: Income Tax Returns (ITRs) show only net income.

Therefore, standard deduction if allowed can be added to the total income. If any interest is paid for housing loans and if it is claimed as a deduction against income from housing property, it can be added back to the total income. If income exempted from income tax (e.g. dividend income, export income, interest on tax- free bonds, agricultural income etc) is either mentioned in the ITRs or in the computation of income statement attached with ITRs, then separate proof of such income need not be called for.

However, if such exempted income is not mentioned it ITRs or computation of income Statement, Proof of the income should be called for.

Share of profit from Partnership firms:

Copies of partnership deed and ITRs/ audited accounts for last three years are to be called for, it is to be ensured that the partnership deed is still in force and the partners are actually receiving their share of profit. 

निगम गीत ,भारतीय जीवन बीमा निगम

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आओ प्यारे साथ हमारे,
जनसेवा हित सांझ सकारेl

सम्यक संचय और निवेशन
जन जन का हित संवर्धन,
निगम नीति का उच्च लक्ष्य है,
व्यक्ति और परिवारोंत्थान ।

लोक हितैषी सेवा दीक्षा,
जन मन प्रेरित सतत सुरक्षा,
योगक्षेमं ही परम ध्येय है,
निगम हमारा प्रिय संस्थान।

उठो निगम के सच्चे सेवक,
अभिकर्ता जन और प्रबंधक,
बुला रहे हैं ,कार्य लोकहित ,
तुम पर निर्भर जनकल्याण।

आओ प्यारे साथ हमारे,
जनसेवा हित सांझ सकारे।।

LIC of India Corporate Flag and the Corporate Anthem (Nigam Geet) were introduced in 1994. Every meeting  LIC agent and LIC staff starts with this prestigious Nigam Geet.

https://licinsurance.online/निगम-गीत-भारतीय-जीवन-बीमा/

Income Tax exemption on maturity death claim proceeds section 10 (10D)

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1.Any death claim received under a life Insurance policy is fully exempt from tax, provided:

a) policy has not been issued under section 80dd(3)

b) policy has not been issued a Key men policy.

2. Any sum received other than death claim under a life insurance policy, including the sum allocated by way of bonus one such policy is exempt from text, provided:

a) policy has not been issued under section 80dd (3) or,

b) policy has not been issued as a key man insurance policy,
c) policy has been issued 31st March 2003 or

d) policy has been issued between 1st April 2003 and 31st March 2012 and the premium paid in any of the Year during the term of the policy does not exceed 20% of the actual capital sum assured or

e) policy has been issued on or after april 1st 2012 and the premium paid in any of the Year during the term of the policy does not exceed 10% of the actual capital sum assured.

Where the policy issued on or after the first April 2013 is for insurance on life of any person ,

who is :

– a person with disability for a person with severe disability as referred to in section 80u or

– suffering from disease or ailment as specified in the rule under section 80DDB.

Exemption under section shall be available payable in any of the years is not more than 15% of the actual capital sum assured.

Surrender Value Calculation of Jeevan Shanti

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1. Jeevan shanti policy can be surrendered at any time after three months from the Date of issuance of policy or after expiry of the free-look period, whichever is later.
2. Surrender is allowed only under the following annuity options:

a) Immediate annuity–
 Option F: Immediate Annuity for life with return of Purchase Price.
 Option J: Joint Life Immediate Annuity for life with a provision for 100% of the annuity payable as
long as one of the Annuitant survives and return of Purchase Price on death of last survivor.

b) Deferred annuity–
 Option 1: Deferred annuity for Single life.
 Option 2: Deferred annuity for Joint life.
3. On payment of the surrender value all other benefits payable will cease.
Procedure for Determining Surrender Value:
a. Surrender During deferment period under Deferred Annuity:
SV = F3 x (F1 x Equivalent annuity amount payable for yearly mode + F2 x 110% of Purchase Price)
Where:

 F1 is Annuity Factor applicable at age lbd on the date of Vesting.
 F2 is the Risk Factor applicable for age lbd on the date of Vesting.
 F3 is the Factor applicable for outstanding deferment period in complete full years as at date of
surrender.
For Example: if the policy with deferment Period 20 years is surrendered during 20th year of policy, then outstanding period will be Zero.
 In case of Joint life policies factors F1 and F2 shall depend on the age lbd of younger annuitant.

Example:
Age at Entry (lbd): Primary Annuitant – 45 Years, Secondary Annuitant – 35 years.
Purchase Price – 10,00,000, Deferment Period – 20 years, Annuity Mode – Yearly,
Calculate Surrender Value payable during 4th
year.
 Age lbd of Younger age at Vesting = 35 + 20 = 55 years
 Annuity rate Payable p.a. for 10 lacs Purchase Price under Joint Life = 225.10 + 2.10 = 227.20
Annuity Payable Per annum = 10,00,000 x 227.20/1000 = 2,27,200
 Outstanding Deferment Period = 20 – 4 = 16 years.
 Factor F1 at Age 55 lbd = 9.4760
 Factor F2 at Age 55 lbd = 0.1306
 Factor F3 for Outstanding Deferment Period of 16 years = 23.94%
Surrender Value = F3 x (F1 x Annual Annuity Payable + F2 x 110% of Purchase Price)
= 23.94/100 x (9.4760 x 2,27,200 + 0.1306 x 11,00,000)
= 0.2394 x (21,52,947 + 1,43,660)
= 0.2394 x (22, 96,607) = 5,49,807

Surrender Value and Loan Payable during each year under Above Example:

b) Surrender after deferment period under Deferred Annuity and under Immediate Annuity:

Surrender Value =
(F1 x Equivalent annuity amount payable for yearly mode + F2 x 110% of Purchase Price) – Annuity
installments paid under the policy during the policy year of surrender up to date of surrender.
Where:
 F1 is Annuity Factor applicable for age lbd on the date of surrender.
 F2 is the Risk Factor applicable for age lbd on the date of surrender.
 In case of Joint life policies factors F1 and F2 shall depend on the age lbd of younger annuitant.
Example:
Age at Entry (lbd): Single/Primary Annuitant – 45 Years, Secondary Annuitant – 35 years.
Purchase Price – 10,00,000, Deferment Period – 20 years, Annuity Mode – Yearly,
Calculate Surrender Value after 3 years (During 4th year after Vesting):
a) Under Option F of Immediate Annuity and
b) Option 2 of Deferred Annuity
a) Under Option F of Immediate Annuity:
 Age lbd of Annuitant on the date of Surrender = 45 + 3 = 48
 Annuity Rate under option F for 10 Lacs Purchase Price Payable yearly = 63.30 + 2.10 = 65.40
 Annuity payable p.a = 10,00,000 x 65.40 /1000 = 65400
 Factor F1 for Age lbd 48 years = 10.0515
 Factor F2 for Age lbd 48 years = 0.0828
SV = (F1 x Equivalent annuity amount payable for yearly mode + F2 x 110% of Purchase Price) –
Annuity installments paid under the policy during the policy year of surrender up to date of surrender.
SV = (10.0515 x 65400 + 0.0828 x 11,00,000) – Nil ( As Annuity mode is yearly).
= 6,57,368 + 91,080 = 7,48,448

LOAN CALCULATION OF LIC JEEVAN SHANTI PLAN

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Loan facility of JEEVAN SHANTI POLICY will be available after completion of one policy year and will be available under the following
annuity options only:

a) Immediate Annuity:

i. Option F – Immediate Annuity with return of Purchase Price
ii. Option J – Joint Life Annuity with 100% Annuity to last survivor and return of Purchase price.

b) Deferred annuity–

i. Option 1: Deferred annuity for Single life.
ii. Option 2: Deferred annuity for Joint life.

Under Deferred Annuity during Deferment period:

 Maximum amount of loan available will be such that the annual interest amount payable on loan shall not
increase 50% of the annual annuity amount payable under the policy after deferment period and shall be
subject to maximum 80% of Surrender Value.

 Loan interest during deferment period shall be paid on compounding half yearly basis.

 In case loan is not repaid during the deferment period and if there is no default in interest payment as at
end of deferment period, then interest on loan shall be recovered from the annuity amount payable after the deferment period.

 In case loan is not repaid during the deferment period and there is a default in interest payment as at end
of deferment period, the difference of surrender value and loan outstanding along with interest shall be
payable to Primary / Secondary annuitant and policy shall be terminated.

 During the deferment period, if interest is not paid on due dates and when the outstanding loan amount
along with interest exceeds the surrender value, the policy shall be forfeited and difference of surrender
value and loan outstanding along interest shall be payable to Primary / Secondary annuitant and policy
shall be terminated.

Example:
Age at Entry: 45 years,

Purchase Price – 10,00,000, Deferment Period – 20 years.

Annual Annuity Payable – 2,27,200, Loan Interest rate – 9.50%
Calculate Loan amount during 4th Year of policy:

 50% of Annuity – 2,27,200 / 2 = 1,13,600
 Loan Amount = 50% of annuity x 100 / Loan interest rate
= 1,13,600 x 100 / 9.50
= 11,95,789
 Surrender Value During 4th year of Policy: 5,49,807
 Loan Amount will be restricted to 80% of SV i.e. 80% of 5,49,807 = 4,39,846.

Under Immediate Annuity and Deferred Annuity after Deferment Period:

 Maximum amount of loan available will be such that the annual interest amount payable on loan shall not
increase 50% of the annual annuity amount payable under the policy and shall be subject to maximum
80% of Surrender Value.

 Loan interest will be recovered from the annuity amount payable under the policy.

 Loan interest will accrue as per frequency of the annuity payment under the policy and will be due on the due date of annuity.

 Outstanding loan amount will be recovered from the claim proceeds at the time of exit.

Example:
Age at Entry Single/Primary annuitant: 45 years, Secondary Annuitant – 35 years.
Purchase Price – 10,00,000, Deferment Period – 20 years, Loan Interest rate – 9.50%
Calculate Loan amount during 4th Year of policy under:

a) Under Option F of Immediate Annuity and
b) Option 2 of Deferred Annuity
a) Under Option F of Immediate Annuity:
 Annuity Payable Per Annum = 65,400
 50% of Annuity – 65,400 / 2 = 32,700
 Loan Amount = 50% of annuity x 100 / Loan interest rate
= 32,700 x 100 /9.5
= 3,44,210
 Surrender Value During 4th year of Policy: 7,48,488
 80% of SV = 0.80 x 7,48,488 = 5,98,790
 Maximum Available Loan will be = 3,44,210.
b) Under option 2 of Deferred Annuity:
 Annuity Payable Per Annum = 2,27,200
 50% of Annuity – 2,27,200 / 2 = 1,13,600
 Loan Amount = 50% of annuity x 100 / Loan interest rate
= 1,13,600 x 100 /9.5
= 11,95,789
 Surrender Value During 4th
year after Vesting: 22,52,448
 80% of SV = 0.80 x 22,52,448 = 18,01,958
 Maximum Available Loan will be = 11,95,789.

What is Grace period for LIC Premium payments?

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Grace period in LIC PREMIUM PAYMENTS

Grace period

If you fail to pay LIC PREMIUM on time then LIC gives you days to pay Your premium without any hassle.

Grace period of one calendar month 30 days will be allowed for the payment of premium under early half yearly quarterly mode and 15 days of premium under monthly mode without changing the interest.

If premium paid after Grace period then interest from due date of premium is charged.

In case of death of life assured in grace period full death claim is payable. However the unpaid premium falling due to before next policy anniversary will be deducted claim amount payable.

If premium chart not paid expiry Grace period the policy lapses and clean under the policy is not payable in case of death after Grace period.

So agent has also to ensure the policy holders pay the premium within Grace period and policy holder should also take it note.

The above Grace period will also apply for the rider premiums and benefit also.