GOOD MORNING

THE AGENDA
WHY R V
MEETNG
TODAY ?
LIC A
GOLDEN
JORNEY
RETURNS
& SURPLUS

PREMIUM
PORTFOLIO

FIXED
DEPOSIT

BACHATAKS
HAY

BACHAT

BACHATAKS
HAYAROGYA

TAXATION

BACHATEM
PLOYEREMPLOYEE

FD V/S
BACHAT

AROGYAEM
PLOYER
EMPLOYEE

THE PURPOSE OF YOUR POSITION

World Population : Top 5 countries

1. China
2. India
LIC
31/03/2011

1,33.86 CRORE
1,16.60 CRORE
38.38 CRORE

(Conv 28.59 + Group Ins 9.79)

3. USA
30.63 CRORE
4. Indonesia
24.02 CRORE
5. Brazil
19.87 CRORE
(As of 3rd May 2009, Source:
www.counttheworld.com)
May 6, 2016

LIC The Journey so far

Zonal Offices
Divisional Offices

1956

2010

5
33

8
111

212

Br Offices
Satellite Offices
Policies

5.6 mn

2,500
1123
383 mn

Life Fund (2011)

459 mn

1,15,12,000

Agents
(aprxmtly)
Employees

mn
1.4mn
5

114,000

Year

LIC The Golden Journey

Yearly New Business Performance
Policies

S.A. (INR Mn)

1958
1967-68
1977-78

9,32,331
14,23,380
18,53,780

3,280.8
8,354.0
20,048.6

1987-88

46,93,788

1,24,345.1

1997-98

1,33,11,294

6,36,176.9

2007-08
2009-10

3,75,89,995
3,88,38,899

27,54,576.5
42,80,618.1

2010- 3.7012 CR
11

TFYPI
52203.64 CR

INTEREST RATE TRENDS

LIFE FUND YIELD BANK RATE & GOVT-SEC
YIELD

YEAR
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07

LIFE FUND
YIELD
11.60%
11.59%
10.40%
9.57%
9.93%
8.72%
8.21%

10YR G-SEC
YIELD
10.06%
7.35%
6.14%
5.15%
6.68%
7.50%
7.99%

LIFE FUND,SURPLUS AND

TAXES PAID ( In Crores)
VALUATIO
N
SURPLU
YEAR LIFE FUND
S

5%
TO
CENTRAL
GOVT

TAXES
PD TO
GOVT

200607

5,60,806.
33 15,156.19

757.81

4670.8

200708

6,86,616.
45 16,590.14

829.59

3510.45

200708

6,86,616.
45 16,590.14

829.59

3510.45

200809
200910

8,07,317.
43
9,99,517. 18,582.32
59 20,618.45

929.12
1030.92

3348.48
3625.29

PAY OUT BY LIC

CLAIMS

2009 10 Rs 53954 CR NO OF CLAIMS 2.11CR

2010 11 Rs 52160 CR NO OF CLAIMS 1.83CR

INVESTMENT IN GOVT & SOCIAL SECTOR (CR)

31.03.09

530159 CR

31.03.10

649808 CR

31.03.11

749150 CR

PREMIUM PORT FOLIO

WZO
YEAR
2010-11
2009-10
2008-09
2007-08
2006-07

TFPI
CR
% SP
8805
62
8865
61
7716
67
7380
49
5898

51

ALL INDIA

TFPI CR

% SP

44065

63

42960

62

35321

63

43813

57

39542

52

PVT PORT FOLIO CONSISTS OF

90% SINGLE

FIXED DEPOSIT
AN ATTRACTIVE
INSTRUMENT ?????
????????? ?

FIXED
DEPOSIT
KPTL RETURN
GRNTEE
SAFTY/SECURTY
TDS
TAXABILITY OF RTRN
LIQUIDITY
INCASE OF DEATH
ATTACHMENT
GOVERNED BY
ASSIGNMENT
COLATRL SECURTY
ON MATURTY
INT RATE GUARANTEE

BIMA BACHAT
BACHAT
FD
FULLY YES
1 LAC
ONLY
100%
YES
NO
YES
NO
YES
YES
YES
S A >KPTL
KPTL
NO
YES
LIC ACT
RBI/BNKNG YES
NO
YES
NO
KPTAL+ LYLT
KPTAL
YES
NO

FIXED
DEPOSIT
PROTECTION UNDER
MWP ACT
WITHDRAWAL

BIMA BACHAT

NO
Y ES BUT
1% MORE

YES
YES 9%
AT PRESENT

BIMA BACHAT
AGE 14
PRM 100000
SA 138000
RETURN
%
Year 3
20700
Year 6
20700
Year 9
20700
Year 12

20.7

TAX REBATE 20% OF

SA 138000 i.e. 27600
NET INVESTMENT
100000 -8280
=92720
RETURN 22.33%
( IF IN 30% SLAB)

5.33% p.a. Simple

TAXATION
RETURNS AFTER EVERY THREE YEAR
Pure Endowment + Pure Term =
Endowment
MATURITY --- RETURN OF PREMIUM ?
DEATH CLAIMS
LOYALTY ???????

BIMA BACHAT WITHDRAWAL

AGE 14
PRM 100000
63000
SA 138000
O/S
RETURN 20.7 %
Year 3
20700
61200
Year 6
20700
58860
Year 9
20700
55818
Year 12
20700

ADVANCE
BAL
INT
18900

PRNCPL 63000
1800

18360

2340

17658

3042

16745

3955

FD AND BIMA BACHAT

FD
LESS ADV
ADD BACK
NET FD
ADV TO BB

110000
100000
63000
73000
37000

RTGS

BB

RTGS100000

63% ADV
NET BB

63000
37000

NET TRANSACTION
Rs 37000
COMMISSION TO AGENTS ON Rs 100000 i.e. 5.4%
PREMIUM FOR COMPTSN ETC .
100000
PREMIUM FOR BRANCH
100000
INS TO POL HOLDER ON
138000
LOYALTY ON
100000

EVERY YEAR
INT RECEIVED 9 % ON 110000
9900
LES INT PAID TO BNK 10% ON 37000 3700
LES INT ADJUSTD BCHT 9%
3330

TOTAL
7030
7030

TAX
AMOUNT
NET SUBJECT
INTREST TO
AVAILABLE
FOR CUSTOMER
2870
INTEREST FROM BANK
9900
LESS PAID TO BANK
3700
AT THE END OF 15 YEARS
NET INTEREST AVILABLE TO CUSTOMER
INT6200
RECEIVED 6200*15
93000
BACHT RECIEPT
BAL OF FD
TOTAL RECEIVABLES

112578
73000
278578

BENEFITS TO IF AGENT SELL BB VIA FD

CUSTOMER

BANK

AGENT
EASY TO SELL

FD NOT DISTURBED

FD INTACT

INSURANCE COVER
TX BENEFT ON INTRST
MATURITY TAX FREE
RETRNS MORE
COLATRL SECURTY
EASY LIQUIDITY
FULY SECURED

RECIEVE INTRST
PAY OUT IS LESS

CUSTMR RETAIND
ADV CREATED
COST REDUCED

NO MONEY CRUNCH
COMMISSION 5.41%
NO LAPSATION FOR
CLUB MEMBERSHIP
CREDIT FOR MDRT
100% CREDIT FOR
COMPETISION

CUSTOMER

BANK

FD NOT DISTURBED

BANK GETS COMMISSIION 5.4%

BANKS FD INTACT

INSURANCE COVER
TX BENEFT ON INTRST
MATURITY TAX FREE
RETRNS MORE
EASY LIQUIDITY
FULY SECURED

BANK RECIEVES INTEREST

PAY OUT IS LESS
CUSTOMER IS RETAINED
CREDIBILITY IS ENHANCED
ADVANCE CREATED

EK SE BHALE DO

BACHATAKSHAY

AGE 40 SA 134000 PRM 100000

RETURN 20 %
INT
PRNCPL
Year 3
20100
19042
1058
Year 6
20100
18723
1377
Year 9
20100
18306
1794
Year 12 20100
17764
2336
Year 15 181710 17058 56436

63000
61942
60565
58771
56436

INVESTENT NET RETURN 108216

BENEFIT TO POLICY HOLDER

INVESTED Rs.
100000
FROM BACHAT 15 YRS 108216
CAPITAL JEEVAN AKSHAY 63000
PENSION LIFE TIME 4366 p. a
RISK FOR 15 YRS
134000
NO MEDICAL
PNSN TAX FREE

JEEVAN
AKSHAY Rs.
63000
PENSION
4366 pa
life time
TAX FREE

BENEFIT TO AGENTS
A) POL
B) PRM
C) COMSN 3.26%

D) PRM FOR COMPTSN 100%

E) PRM FOR MDRT 10% 163000
POL WILL B IN FORCE
FOR CLUB MEMBER

2
163000
3260

BIMA BACHAT AS YLY PENSION

AGE 25
RETURN 20.1 %
1
2
3 20100
4
5
6 20100
7
8
9 20100
10
11
12 20100
13
14
15 180000 MINUS

165006

PRM 100000

SA 134000

YLY WITHDRAWAL
6120
6120
6120
6120
6120
6120
6120
6120
6120
6120
6120
6120
6120
6120
14994
BALANCE

BACHATARANG
Age
Up to 46
years

Age
Up to 40
years

Single premiums
Accumulation period
10 years
15 years
756.00
644.00

20 years
548.00

Regular premiums
Accumulation period
10 years
15 years
109.10
71.40

20 years
51.50

BACHATARANG

BACHATARANG

AGE 40 SA 134000 PRM 100000

RETURN 20 % WITHDRAW
BALANCE 37000

63000

INVESTENT NET RETURN 15 YRS

108216

BENEFIT TO POLICY HOLDER

INVESTED Rs.
100000
FROM BACHAT 15 YRS
108216
FROM TARANG
60000
TOTAL RECIEPT
168216
CAPITAL TARANG
100000
PENSION LIFE TIME
8.73%

TARANG Rs.
63000 SP
SA 100000
PENSION
8.73% pa life
time AFTER 15
YRS

BENEFIT TO AGENTS
A) POL
B) PRM
C) COMSN 3.26%

D) PRM FOR COMPTSN 100%

E) PRM FOR MDRT 10% 163000
POL WILL B IN FORCE
FOR CLUB MEMBER

2
163000
3260

EMPLOYER-EMPLOYEE

EMPLOYEE

EMPLOYER
WELFARE

EXPENSES U/S 37(1)

340 OR 300
ASSIGNMENT
PROCEDURE OF E / E
INTEREST ON LOAN AS
BUSINESS EXPENSES
ANY POLICY, ANY MODE
SHARE HOLDING 50%
INDIVIDUAL AND 75%
FLY

PERQUISITE SEC 17(2)

(V)
CLAIMABLE U/S 88
MATURITY/DEATHCLAIM
ON RETIREMENT OR
RESIGNATION

EMPLOYER EMPLOYEE AROGYA

AKSHAY AROGYA
BACHAT AROGYA
AKSHAY BACHAT AROGYA

AKSHAY AROGYA
AKSHAY AROGYA A
100000 7100 pa
SELF 40 SPOUSE 36
7100
3480
2016
7100
3480
2016
7100
3480
2016
7100
3480
2016
7100
3480
2016
7100
3480
2016
7100
3480
2016
7100
3480
2016
7100
3480
2016
7100
3480
2016
7100
3480
2016
7100
3480
2016
7100
3480
2016
7100
3480
2016
7100
3480
2016

CHILD A 14 CHILD B 12 TOT PRM

853
828
7177
853
828
7177
853
828
7177
853
828
7177
853
828
7177
853
828
7177
853
828
7177
853
828
7177
853
828
7177
853
828
7177
853
828
7177
853
828
7177
853
828
7177
853
828
7177
853
828
7177

CONTI NUE TILL LIFE TIME OF PROPOSER

BCHT
100000

AKSHAY AROGYA
63000
4473

YR 7.1% SELF &

PNSN SPOUS
1 4473
4473
2 4473
4473
3 4473
4473
4 4473
4473
5 4473
4473
6 4473
4473
7 4473
4473
8 4473
4473
9 4473
4473
10 4473
4473
11 4473
4473
12 4473
4473
13 4473
4473
14 4473
4473
15 4473
4473

AKSHAYBACAHTAROGYA

CUSTOMER
ONLY ONE TIME
PRM
PRM 100000
15 YRS RISK
135000
HEALTH INS SELF
+WIFE
AT 15 YRS 108216
LIFE TIME PNSN
4473
RETRN OF KPTL
63000
TAX REBATE 80D
TAX REBATE 88 OF
BCHT
GUARANTEED RTRN

AGENT
PRM 167473
COMSN
4826
POL
3
LIVES
2
PRM ELGBLE FOR
MDRT
PRM ELGIBLE
FOR ALL
COMPTSNS.
JVN AROGYA
SEPARATE
COMPTSN ALSO
RENEWAL 5%
NO LAPSASN

HOW IT CAN BE MARKETED?

BACHAT AS FIXED DEPOSIT
EMPLOYER EMPLOYEE
BENEFIT TO EMPLOYER
BENEFIT TO EMPLOYEE
WITHDRAWAL OF ADVANCE
INTEREST PAID ON ADVANCE
MONEY BACK TAX FREE
MATURITY TAX FREE
LOYALTY LTG
INSURANCE AT NO MEDICAL
BETTER THAN TERM INSURANCE
ASSIGNMENT AVAILABLE
YEARLY TAX FREE PENSION FROM AGE 14 ONWARDS
PENSION BECOMES TAX FREE
Rs 10000 AS FD IN BACHAT

 GOD BLESS YOU

ALL THE BEST FOR TENSION FREE
LIFE AND ACHIEVEMENT OF YOUR
TARGET

THANK

YOU

Hello, Everybody

Wish You All The

Best For Your
Business in coming
three months.
Jagdish Mahant