भारतीय जीवन बीमा िनगम

गोवा मंडल

**********************************
*********(का.एवं औ.सं.िवभाग)*********
िश ण साम ी
Interview Material-Goa Division
Complied by P&IR Department
With the help of all Divisional Departmets
For further suggestions/Inputs please feel free to contact Shri Sanjay Bhise,AO-(P&IR)-
9819622827

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 GENERAL AWARENESS

Q.1. What is insurance?

Ans. A device by which individual loss is shared by many is called Insurance.
Q.2. What is the main difference between Life Insurance Contract and Non-life Insurance Contract?
Ans. Life Insurance is not a contract of indemnity whereas non-life insurance is a contract of indemnity.
Q.3. What are the different principles of insurance?
Ans. Insurance is based on (i) Economic principles, (ii) Legal principles and (iii) Actuarial principles.
Q.4. What are the elements of premium?
Ans. Mortality rate, interest on investment, management expenses and loading (for with profit policies).
Q.5. Whether loss can be prevented by insurance?
Ans. No
Q.6. What is surplus?
Ans. It is excess of life fund over the policy reserve or liability.
Q.7 Define Life Fund?
Ans. Excess of premiums received and interest earned thereon over expenses and claims paid is called the life fund.
Q.8. Define Policy Reserve or Liability?
Ans. The present value of future claims payable over the present value of future premiums
receivable is known as the policy liability.
Q.9. From which source the surplus is generated?
Ans. The sources are interest surplus, mortality surplus, loading surplus and miscellaneous surplus such as surrenders,
lapsations etc.
Q.10. In insurance how individual loss is shared by members of the society?
Ans. By estimating probable loss through wide spread data the loss is shared by the group. The cost of share is
premium.
Q.11. Define risk.
Ans. Possible adverse result flowing from any occurrence is called risk.
Q.12. What is IVRS?
Ans. Interactive Voice Response System.
Q.13. Which Product of LICI had won Skoch Challenger Award-2008?
Ans. Jeevan Madhur
Q.14. What are the e-mail IDs of different departments and various branches of Goa DO?
Ans. For departments: department [email protected]
Ex. [email protected] For branches: [email protected]
Ex. [email protected]

Q.15. Grievance Redressal through OMBUDSMAN is regulated by whom?

Ans. Governing Body of Insurance Council (GBIC)
Q.16. Who are the members of GBIC?
Ans. Chairman of LIC and GIC and CM-cum-MDs of four subsidiaries of GIC

Q.17. Who is the Chairman of LIC? .

Ans. Sri M R Kumar
Q.18. What is the full name of our Sr. DM ?
Ans. Sri Sanjay Dayal
Q.19. Name the plans exclusively meant for handicapped?
Ans. Jeevan Vishwas, Jeevan Adhar.
Q.20. Who is the Western Zonal Manager of LIC ?
Ans. Sri Vikas Rao.
Q.21. What are LAN, MAN & WAN?
Ans. Local Area Network (LAN) connects computers situated within the same premises. Metro Area Network (MAN)
connects computers situated within the same city or area. Wide Area Network (WAN) connects computers situated at
considerable distances e.g. one metropolis to another.
Q.22. Define OER?

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Ans. Overall Expense Ratio = Total expenses of the management X 100 Total premium income
Q.23. What is the role of a nodal officer?
Ans. To help in closure of Audit & Inspection reports.
Q.24. What do the seven colours in our corporate flag represent?
Ans. Unity in diversity
Q.25. Which month is observed as the “Social Security month” in LIC of India?
Ans. October
Q.26. Guaranteed Surrender Value is regulated by which section of Insurance Act, 1938?
Ans. Section-113
Q.27. Name the latest policy launched by LICI.
Ans. Tech Term (T-854), on 30/08/2019.
Q.28. Tell the salient features of Premium payment through ATMs of Axis Bank.
Ans: The facility of premium payment through the ATMs of Axis Bank has commenced
w.e.f. 13/3/2004. This service is initially offered at eight centres Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad,
Kolkata, Mumbai & Pune. BO number 883 of Mumbai DO-I will issue receipts for the premium collected through this
arrangement.
Q.29. What is the period for which a policy should have run for full S.A. in order to qualify for bonus where the date of
commencement is before 01/04/1973?
Ans. 2 years, after 01.04.1973 it is 3 years.
Q.30. CRC stands for what?
Ans. Claims Review Committee
Q.31. Policyholder’s Council is constituted in how many years?
Ans. Every two years.
Q.32. An Auditor in India must be a Chartered Accountant. Whether internal Auditors in LIC are C.A.s?
Ans. No. They are not auditors in the true sense. They are only checkers.
Q.33. Central Govt. has provided that the investment of life fund must be made in approved securities. However, it
also provides for investment in unapproved Securities. What is its limit?
Ans. 15% subject to approval of Board
Q.34. As per Insurance Act, 1938 a life insurer must make actuarial valuation once in how many years? What is LIC’s
practice?
Ans. Every two years. LIC is carrying out valuation every year from 31/03/1986.
Q.35. What is the name of LIC’s Website?
Ans. www.licindia.in
Q.36. How normal Blood Pressure is for any age is calculated?
Ans. Systolic = 115+2/5 of age. Diastolic= 75+1/5 of age.
Q.37. Can the corporate flag be hoisted on 15th August?
Ans. No, honor to the nation comes first.
Q.38. Where is the Management Development Center (MDC) situated?
Ans. Borivili (West), Mumbai
Q.39. What is FMC ?
Ans. Fraud Monitoring Committee.
Q.40. What is “AABY”?
Ans. AABY stands for Aam Admi Bima Yojana. In his Budget speech in the Budget session 2007 the Finance Minister
has announced this scheme for unrecognized sector workers. It is one of the commitments made in the NCMP
(National Common Minimum Program).
Q.41. What are the major awards that LIC has received in recent past?
Ans. 1) Most Trusted Service Brand in India for fifth consecutive year- by Economic
Times & AC Nielson & ORG MARG.
2) AWAZ consumer Awards-2007 given by CNBC-.TV18
3) Business Super Brand India.
4) Outlook Money Award-2007
5) Reader’s Digest Trusted brand Award- Asia: 2008
6) NDTV profit business leadership award.
7) Golden Peacock Award for excellence in Corporate Governance.

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8) Web 18 Genius of the Web Award-2007
9) Gold at the “Corporate Sporting Challenge”
10)Corporate Championship Award winner-2008
Q.42. IRDA Act 1999 was enacted on 29.12.1999. What are its objectives?
Ans. It is an act to provide for the establishment of an authority to protect the interest of
holders of insurance policies, to regulate, promote and ensure orderly growth of the insurance industry and for matters
connected therewith or incidental thereto and further to amend the Insurance Act 1938, the Life Insurance Corporation
Act 1956 and the General Insurance Business (Nationalisation) Act 1972.
Q.43. How the Authority shall be constituted?
Ans. The Authority shall consist of (i) A Chairperson, (ii) not more than 5 whole life members and (iii) not more than 4
part time members to be appointed by the Central Govt. having knowledge and experience in Life Insurance, General
Insurance, Actuarial Science, Finance, Economics, Law, Accountancy and Administration.
Q.44. What is the tenure of the members of IRDA?
Ans. 5 years.
Q.45. Who is the present Chairman of IRDA?
Ans. Mr. Subhash Chandra Khuntia
Q.46. Name the House Magazine of our Central Office. ?
Ans. Central Office – Yogakshema,
Q.47. Where are our various zonal offices located?
Ans. Central Zone – Bhopal (Jeevan Shikha)
North Central zone – Kanpur (Jeevan Vikash)
South Central Zone – Hyderabad (Jeevan Bhagya)
Northern Zone – New Delhi (Jeevan Bharati)
Southern Zone – Chennai (LIC Buildings)
Eastern Zone – Kolkata (Hindustan Buildings)
East Central Zone: Patna (Jeevan Deep Building)
Western Zone – Mumbai (Yogakshema )
Q.48. What is the emblem of LIC and logo of LICI?
Ans. The lamp with two hands. It was prepared by Advertising and Sales Promotion
Agency. The script style of official name “LIFE INSURANCE CORPORATION OF INDIA” is the logo of LICI.
Q.49. What is the motto of LIC? Who had prescribed it?
Ans. “Yogakshemam Vahamyeham”. It was formulated by Sri S Ananth Chari, Sr. Steno to Principal Secy (Finance),
Govt. of India.
Q.50. Who is the pioneer of OIC in LIC?
Ans. Prof. Iswar Dayal (in 1980)
Q.51. What is the name of world’s largest group insurance scheme?
Ans. LALGI Scheme (1.2 crore population)
Q.52. What is the name of first Indian Insurance Company?
Ans. Bombay Mutual Life Assurance Society (1870)
Q.53. What is our mission as per Citizen’s Charter?
Ans. Improve the quality of life of people.
Q.54. What is UAN?
Ans: Unified Access Number – i.e. 1251 for IVRS centres where mapping is done.
Q.55. What do you mean by the word ‘YOGAKSHEMA’?
Ans. I bring security of what you have and attainment of what you have not.
Q.56. What are the characteristics of a sound ‘Management Information System’ (MIS)?
Ans. Accuracy, promptness and relevance
Q.57. Investment of Life Fund is governed by which section of Insurance Act, 1938?
Ans. Sec. 27 (A)
Q.58. What are the various parts of a LIC Policy Bond?
Ans. Preamble, Operative Clause, Proviso, Schedule, Attestation, Privileges and conditions
Q.59. Nigam Geet has been translated to Hindi from which language?
Ans. Kannada
Q.60. What is a Policy Bond?

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Ans. It is a document in which terms and conditions of the contract are laid down.
Q.61. If insurance is a contract between two parties, who gives offer and to whom?
Ans. The proposer offers to purchase the scheme through proposal to the insurer.
Q.62. What is paid-up value?
Ans. It is the proportionate value of SA, which bears to the number of years’ premium
paid to total number of premium payable.
Q.63. Do you agree that saving through Life Insurance is better than the savings in other
forms? Give your comments.
Ans. Life Insurance savings (i) covers risk of premature death, (ii) encourages instinct for
savings, (iii) creates separate property for dependent under section-6 of MWP Act 1874, (iv) achieves objective of life
even on death and (v) gives tax concessions.

Q.64. What is Guaranteed Addition? How is it different from Loyalty Addition?

Ans. Guaranteed addition means a fixed percentage of amount is added as benefit to policy irrespective of profit or loss
made by the insurer. But loyalty addition is addition to policy as benefit after valuation is done. It depends on the
amount of surplus generated in the business.
Q.65. What is Micro Insurance?
Ans: Micro Insurance is an insurance solution directed at low-income groups who have small saving capacity
incorporating either or composite features of life, general and health insurance and is to be managed on professional
actuarial principles and sound marketing practices.
Q.66. When did IRDA’s Micro Insurance Regulation Act come out?
Ans. On 10th November, 2005.
Q.67. Who is the chief Editor of “Yogakshema” magazine?
Ans. Sri Vinay Sah
Q.68. Where is the headquarter of IRDA Situated?
Ans. Hyderabad.
Q.69. How many Info centers of LIC have been set up?
Ans. Eight (Mumbai, Pune, Ahmedabad, New Delhi, Kolkata, Chennai, Hyderabad,
Bangalore)
Q.70. On which date ordinance for interim Pension Fund Regulatory & Development Authority (PFRDA) was
promulgated?
Ans. December 30, 2004
Q.71. What is Propsino System?
Ans. It is the system used for tracking the movement of proposal papers as also for conveying the underwriting
decision taken at CUS instantaneously to the operating
offices. The latest version is named as Propsino Pearl.
Q.72. What is the new name of PR&CC Department?
Ans Corporate Communications Deptt.
Q.73. What is the benefit of entering Micro-Insurance Business?
Ans 1) To get the brand into a new market
2) Fulfillment of Corporate responsibility
3) Today’s Micro Insurance clients may be tomorrow’s high premium clients.
Q.74. Which Pvt. Life Insurance Co. had got first license to transact life insurance business
in India after opening up Insurance sector?
Ans. HDFC Standard Life.
Q.75. When was S.S.S. started in LIC?
Ans. 1957
Q.76. In which year corporate flag and corporate anthem (Nigam geet) were introduced?
Ans. 1994
Q.77. What is “Six Sigma concept”?
Ans. It is a process control management. It is a management concept which sets standard
for achieving optimum level quality in work process.
Q.78. What is EDMS project?
Ans. The Enterprise Document Management System (EDMS) project envisages scanning

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& digitizing policy/agency records to make them available on-line to Branch/Divisional Office users. EDMS project
also envisages the introduction of workflows for certain pre-defined & structured administrative processes in ZOs &
CO. EDMS will ensure efficient management of policy/agency records as well as Office space in Branch Offices.
Besides, EDMS will work as a Disaster Recovery System (DRS) for the physical records maintained by Branches;
EDMS should lead us to simplification & standardization of forms including bar-coding. *** EDMS project will take
around 5 years to complete. Now EDMS project is in second stage. This project will help LIC to provide any time and
any where service to the
Policy holders.
Q.79. Who is the Managing Director of LIC ?
Ans: Sri T C Suseel Kumar, Sri Vipin Anand., Shri Mukesh Kumar Gupta, Shri Rajkumar

Q.80. What is E-proposal?

Ans: SDC along with its COSP team, provided a web-based proposal capturing mechanism called e-proposal as per the
demands of marketing officials. The EProposal is fully integrated into the FEAP system for completing the registered
proposals and sending information back to the agents.
Q.81: What is ODS?
Ans: ODS stands for On-line Data Store. ODS database provides data for:
.1 Sending SMS to policy holders in case of premium due.
.2 On line payment through customer portal
.3 Premium collections by branches under Axis.
.4 Agents to access through Agents Portal.
.5 Complaints Tracking System through Portal.
.6 Branches to validate enrolled policies through intranet.
Q.82. What is EPS?
Ans: EPS (Enterprise Portal Solution) initiative started with the purpose of providing a web based single, personalized,
point of interaction along with wide variety of content and services to Customers, Agents, and Employees of LIC.
Q.83. Where is Head Qr. of Health Insurance Division is located?
Ans: Hyderabad.
Q.84. How many TPAs have been selected by L.I.C.I. to take care of Health Insurance
Policy Service specific function?
Ans: Genins India Insurance TPA Ltd.
Q.85 What is C-Zee?
Ans: C-Zee is the short form of Customer Zone. This is a new CRM initiative to provide better
and prompt service to our valued customers. It also acts as an info center leading to creation of business leads.

SOME NEW CONCEPTS

CCC : Customer Care Centre is a new CRM initiative, in our endeavour to be a customer centric world class
organisation. These CCCs will be located in 30 divisions and will have 4 major functionalities : Info Centre,
Premium Collection, Help Desk and Relationship Desk for priority customers like Gold Club Members.
Customer Care Centres which will be relationship management structures offering
differentiated and unique customer service experience. The new name for CCC is C-Zee.
MASH :
In a Branch Office, mix-up of the major operations such as Business Procurement, Customer care, Batch
Processing Jobs etc. leads to conflict of priorities and as a consequence, one or other job gets less attention, at
times. But each of these areas is important and needs focused attention.
LIC has created a separate Back Office structure (MASH) for some batch processing jobs
which do not need interaction with, or physical presence of customer.
What is a Data Warehouse?
"A data warehouse is a subject oriented, integrated, time variant, non volatile collection of data in support of
management's decision making process".
Example: In order to store data, over the years, many application designers in each branch have made their
individual decisions as to how an application and database should be built. So source systems will be different in
naming conventions, variable measurements, encoding structures, and physical attributes of data. Consider a bank

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that has got several branches in several countries, has millions of customers and the lines of business of the
enterprise are savings, and loans.
A data warehouse is a relational/multidimensional database that is designed for query and
analysis rather than transaction processing. A data warehouse usually contains historical data that is derived from
transaction data. It separates analysis workload from transaction workload and enables a business to consolidate
data from several sources.
There are three types of data warehouses:
1. Enterprise Data Warehouse - An enterprise data warehouse provides a central database for decision support
throughout the enterprise.
2. ODS(Operational Data Store) - This has a broad enterprise wide scope, but unlike the real enterprise data
warehouse, data is refreshed in near real time and used for routine business activity.
3. Data Mart - Data mart is a subset of data warehouse and it supports a particular region,
business unit or business function.
Data Mart:
A data mart is a subset of data warehouse that is designed for a particular line of business, such as sales, marketing,
or finance. In a dependent data mart, data can be derived from an enterprise-wide data warehouse. In an
independent data mart, data can be collected directly from sources.
HCTM :
To standardize hardware complaint tracking and to regularize calculation of breakdown penalty, C.O. IT dept has
developed “Hardware Complaint Tracking Module”. The module is implemented in all zonal offices & Divisional
Offices. Module requires PHP & MYSQL Programming Language.
VOIP :
Voice over IP Phones.
The Corporation has its own shared network nationwide through dedicated leased lines. A position of Bandwidth is
used for telephone communication. Almost all Divisions, Zone and Central Office have been provided with this
facility. Any number of talking hour do not require any extra cost.

ABBREVIATIONS

ITCC - INFORMATION TECHNOLOGY COORDINATION COMMITTEE

IRDA - INSURANCE REGULATORY & DEVELOPMENT AUTHORITY

UAN - UNIFIED ACCESS NUMBER (1251-FOR LIC)

NASSCOM - NATIONAL ASSOCIATION OF SOFTWARE SERVICES CONSORTIUM

TASA - TOTAL ACTUAL SUM ASSURED

SUC - SUM UNDER CONSIDERATION

TRI - TOTAL RATEDUP INSURANCE

EPDB - EXTENDED PERMANENT DESABILITY BENEFIT

ZCRC - ZONAL CLAIMS REVIEW COMMITTEE

CNS - CENTRAL NERVOUS SYSTEM

FER - FORIGN EXCHANGE REGULATION

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GLES - GROUP LEAVE ENCASHMENT SCHEME

IRDP - INTEGRATED RURAL DEVELOPMENT PROGRAMME

ECG - ELECTRO CARDIO GRAM

PHC - POLICY HOLDERS COUNCIL

ZAB - ZONAL ADVISORY BOARD

HRD - HUMAN RESOURCES DEVELOPMENT

CAC - CONSUMER AFFAIRS COMMITTEE

CAGR - COMPOUNDED ANNUAL GROUTH RATE

NBFC - NONBANKING FINANCIAL COMPANIES

ICICI - INDUSTRIAL CREDIT & INVESTMENT CORPORATION OF INDIA

IDBI - INDUSTRIAL DEVELOPMENT BANK OF INDIA

PPB - PLANNING & PERFORMANCE BUDGET

MWP - Act MARRIED WOMAN PROPERTY ACT

HUF - HINDU UNDIVIDED FAMILY

SEBI - SECURITIES & EXCHANGE BOARD OF INDIA

IP - INTERNET PROTOCOL

TCP - TRANSFER CONTROL PROTOCOL

FTP - FILE TRANSFER PROTOCOL

RTP - REAL TIME PROTOCOL

POP - POST OFFICE PROTOCOL

SMTP - SIMPLE MAIL TRANSFER PROTOCOL

RAS - REMOTE ACCESS SERVERS

ISDN - INTEGRATED SERVICE DIGITAL NETWORK

KBPS - KILO BYTES PER SECOND

HTTP - HYPER TEXT TRANSFER PROTOCOL

HTML - HYPER TEXT MARKUP LANGUAGE

VIRUS - VITAL INFORMATION RESOURCE UNDER SEIZE

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MLLN - MANAGED LEASED LINE NET WORK

CAV - CORPORATE ANTI VIRUS

HCTM - Hardware Complain Tracking Module

PCMC - Premium Collection & Management Center

NMS - Network Management System

BPR - Business Processing Re-Engineering

RHEL - Red Hat Enterprise Linux

RAID - Redundant Array of Independent Disks

GB - Giga Byte

Gb – Gigabit

CCC - Customer care centre

MASH - Metro Area servicing Hub

CADW - Corporate Active Data Warehouse

HCTM - Hardware complaint tracking module

VPN - Virtual Private Network

PRI - Primary Rate Interface

BRI - Basic Rate Interface

NEFT - National Electronic Funds Transfer

KYC - Know Your Customer

AML - Anti-money Laundering

IADE - Image Assisted Data Entry

PGEP - Post Graduate Executive Programme

RRP - Relationship Renewal Programme

UIDAI - Unique Identification Authority of India

GOIB-Growth Oriented Incentive Bonus

NACH- National Automated Clearing House

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 ACCOUNTS DEPARTMENT

1. What are main sections of A/c’s department?

ans. Cash & Banking section, General A/cs section
2. What are main functions of cash section?
ans.a. To account for collections received at counter.
b. To account cheques received through RR register.
c. To withdraw Imprest cash for day to day requirements.
d. To purchase receipt stamps, policy stamps, agents license fee stamps, postage stamps etc and
maintain their stock register.
e. To ensure safety of cash, cheques, stamps, unpaid premium receipts, unused
receipt books, and unused cheque books.
f. To lodge in bank previous/same days, collection of cash and cheques.
3. What are the income books maintain by the cash section?
ans. a) Branch premium etc. Cash Book
b) Branch Deposit Cash Book (policy)
c) Branch Deposit Cash Book (proposal)
d) SSS Collections Cash Book &
e) Policy Loan and Loan Interest Cash Book
f) Miscellaneous Cash Book
4. What are the payment Books maintained in accounts department at Branch offices ?
Ans. i) A/c. No. II Cash paid book-Disbursement of payments in cash, cheque & NEFT such as salaries,
commission to agents etc.
ii) A/C .No. IV Transaction Book-for accounting policy payments discontinued w.ef. from 30.06.2019
iii) A/c No: III Transaction Book-for Inter-Bank Transfer and surplus transfer
5. Which rubber stamp has to affixed when a cheque is received in collection?
A). If the instrument is in order and does not pertaining to any other office, we have to affix with a rubber
stamp reading "NOT NEGOTIABLE - CREDIT LIFE INSURANCE CORPORATION OF INDIA- A/C
NO:III OR I" as the case may be and then account the cheque.
6. What are the check points while scrutinizing the Cheques received at the counter?
A) 1.Cheque is duly signed and dated.
2. Cheque is neither postdated nor stale.
3. Cheque is drawn in favor of LIC of India
4. Amount both in words and figures is correctly written.
5. Name of the drawee bank branch is stated on the cheque.
6. Cheque is not mutilated & Life Assureds A/C NO.
7. Procedural provisions such as a) Third party cheques b) Foreign currency Cheques c) outstation
cheques.

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8. If any corrections not accepted in view of the system of the bank CTS-2010

7. What is the procedure to be followed when a Foreign currency cheque / Draft is received?
A). 1. When the cheque /DD is received by the Cash section in Foreign Currency
accounting entries shall not be passed in the Books of Accounts until in Indian rupees, and credited to
the Bank A/C no: 3 as the case may be.
2. Send the instrument by a separate Cheque pay-in-slip for realization of the proceeds.
3. Bankers shall be advised that on realization a separate credit advise is sent with particulars of
Exchange Rate and Bank Charges.
4. Then only an entry is passed in relevant Cash books.
8. What are the rules regarding acceptance of postdated cheques?
A) 1. Postdated cheques should not be accepted at counter.
2. Postdated cheques by more than 30 days received through mail shall be returned to the party.
3. Cheques postdated by less than 30 days and received through RR register shall be accepted and kept
in safe after entering them in a separate register.
4. Such Cheques should be accounted one working day prior to the date of cheque.
5. Cheques dated 1st April or thereafter received before 31st March (within 30 days time limit) of the
previous financial year should be accounted only in the new financial year which commences from 1st
April.

9. What are the X-Charge limits?

A). The Limits for raising X-Charges against the policy are:-
Up to Rs.40/- when the Sum assured is less than 10,000/-
Up to Rs.100/- when the Sum assured is 10,000 and above but less than 50,000
Up to Rs.200/- When the Sum assured is 50,000 and above.
10. What is the DCB? Explains its significance in cash section?
A) DCB is the abbreviated form of Daily Cash Balance Book. This is an extract of balances of all cash
books and also the Imprest cash balance as at the end of the day collected by the Cashier & checked by
the any supervisory Official. The Cash Box duly locked by the cashier after counting the cash shall be
arranged to be placed in the Iron Safe and locked. It will be certified by the holder of Key No:1 and Key
NO:2 in the DCB. Bank balances as at the end of the day in all the three current accounts are stated in
the DCB. Any Excess /Shortage of collections made, pending cheques on hand at the end of the day,
unpaid salaries, Cheques enchased by employees etc. are to be recorded in DCB.

11. Explain the cases in which advance receipt of payee is required?

A) 1. Payment of Loan, surrender, Claims, Salary, refund of deposits Outstanding for more than one year
from the date of deposit.

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2. For all payments to be made in cash and also in cases of payments by
cheque at the request of payee.
3. Where payment is made by MO exceeding Rs.100/- (Exceeding Rs.50/- in case of Agency
commission) Advance Receipt shall be retained.

12. What are the Imprest limits of Divisional Office in a Branch Office?
A) Divisional Office is authorized to keep an Imprest Cash upto a maximum of Rs.25,000/- and Branch
Offices are permitted to maintain Imprest cash upto a maximum limit of Rs.15,000/-. The exact amount
shall be fixed at the discretion of Sr. Divisional Manager depending upon the size of the Branch.
13.What are the limits for making cash payment in Branch Office?
4. Any payment not exceeding Rs.2,500/- (Gross) for outsiders ,not exceeding Rs 5,000/- for
Employees, LTC and T.E. bills settlement upto Rs. 15,000/-can be paid in Cash. There is no limit for TE,
LTC , Sundry Advance and Advance Salary etc..

14. Explain the reason in extending the facility of Encashment of cheques from Imprest cash by
the Employees.
Ans. Now not available.
15.Mention cheque which can not be enchased at the office.
Ans. Now not available.
16. State cases where Revenue stamps are not to be affixed on receipts issued against
collections received?
a. Collections received from other offices of the Corporation by way of transfer of funds, reimbursement
of expenses.
b. Amount received from policyholder on behalf of another office of the Corporation, which is credited to
R.R. Suspense A/c.
c. Collections received from Agents towards Agents license fee stamps.
d. Collections made towards sale of saleable literature of Corporation.
e. Repayment received in respect of advance salary drawn by the employee consequent upon
cancellation of PL/SL granted to him.
f. Repayment of advance against T.E.
g. Repayment of Sundry Advance.
h. Reimbursement of cost of Ticket purchased for visiting officials.
i. Repayment of Cycle Advance, Festival/Flood Advance and any other advance drawn by the employee.
j. Repayment of P.F. Loan and interest thereon.
k. Advance against L.T.C.
m. Advance Salary
17. In which cases cash can be paid where gross amount does not exceed Rs.15000/- ?
i. Final settlement of TE Bill

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ii. Final settlement of Transfer TE Bill
iii. Final settlement of LTC Bill.

18. What is the Trial Balance?

ans. Trial Balance is a summary of Debit and Credit Balances under various accounts extracted from the
Principal ledger with a view to test the arithmetical accuracy of the books of Accounts. Trial Balance is
the Barometer which reflects the health of an Organization. The drawing of Trial Balance, in an accurate
manner is a very important exercise of the Accounting unit. Trial Balance thus forms a connecting link
between the Ledger Accounts and the Final Accounts.
19. For what purpose is Journal utilized?
Ans. The use of Journal is very much restricted in accounting and through this book are passed such
transactions which cannot be conveniently recorded in any other books of prime entry. Usually the
following transactions are recorded:
1. Opening entries
2. Transfer from one account to another
3. Rectification of errors
4. Adjustment entries
5. Closing entries.

20. What do you understand by a Bank Reconciliation Statement?

ans. All the monies paid into the bank current account as also sums paid from the A/C by the banker are
entered in a Bank Pass Book by the Bank. Similarly the amounts lodged by the depositor in Bank current
account and cheques issued, amounts withdrawn there from are recorded in the cash book maintained
by the depositor. But, balances in the pass book and the
cash book maintained by the depositor will not generally agree. The reasons may be 1. Cheques paid in
but not credited by the bank 2. Cheques issued but not presented to the bank for payment
3. Interest credited by bank to our a/c but no entry in cashbook 4. Bank charges debited by bank but not
reflected in cash book etc., Hence, a reconciliation statement is therefore prepared at periodical intervals
with a view to indicate the items which cause such disagreement between those two books.

21. What is the need for vouching?

ans. Vouching serves the purpose of verifying in the midst of an array of accounts.
a. The correctness of Head of account.
b. That the payment is in order.
c. It is duly sanctioned by the competent authority.
22. Why should the sub-ledger be maintained?

13
ans. Sub ledger is required to provide an item wise break up of the balanced outstanding under a
particular head of account as reflected in the principal ledger as at the end of any given month. The sub-
ledgers are, therefore, an important aid for the preparation and tallying of year-end schedules at the time
of final closing of accounts.
ans.
23. Explain the accounting procedure of post dated cheques?
ans. Cheques post dated by less than 30 days received through inward mail may be accepted only the
same be kept in the office safe after an entry in the R.R.register. Such cheques will be handed over to
the cashier one working day in advance of the date of the cheque and the same is accounted.
24. What is the procedure to be followed for accounting of collections in case of Machine
breakdown?
ans. Accounting for machine breakdown has been provided as a separate option in the cash module
under the break down accounting. Temporary receipts will be issued and later on when the machine
comes up original receipts will be issued.
25. What is surplus? How does Surplus Transfer from branches to Central Office.
Ans. the difference between income and outgo is called as available Surplus.
The Surplus funds generated are transferred to the Divisional Office/Central Office.
26. What is a stale cheque?
ans. A cheque not encashed within 3 months from the date of the cheque is known as stale cheque.
27. Can we revalidate a stale cheque?
ans. No, only we have to issue a fresh cheque.
28. What are sub ledgers?
ans. Sub ledgers are very important subsidiary books.
29. What is the Imprest limit of HGA administration?
ans. Rs.10,000/-
30. What is the importance of No.1 key certificate?
ans. The key No.1 holder states as follows "I certify that the cash box containing the cash mentioned
herein was kept in the safe duly locked by me".
31. What is the importance of key No.2 certificate?
ans. The key No.2 holder states as follows " I certify that the cash box is kept in the safe and duly
locked".
32. What do you mean by the capital expenditure?
ans. Capital expenditure is that expenditure which results in the acquisition of assets.
33. What do you mean by Revenue Expenditure?
ans. An item of expenditure whose benefit expires within the year itself is known as revenue expenditure.
34. What is a Balance Sheet?
ans. It is a financial statement of assets and liabilities on a given date.
35. What is life fund?
ans. The life fund is the reserve held on the policies in the books of the insurers.
36. What are the major schedules? On which date they are prepared?

14
ans. Schedules of all types of deposits, policy loans, unclaimed and assets and liabilities are called as
the major schedules. They are prepared on Quarterly basis.
37.What is written off action and written back action ?
ans. Written off action is taken in respect of Assets which cannot be recovered in spite of best efforts.
Cases of excess payment of surrender value, Claims, Commission to Agents fall under this category. To
write off the asset, permission from Competent Authority has to be obtained. Written back action is taken
in respect of liabilities. Instead of carrying forward the liability for an identified period of time, the liability
is written back to Revenue Account after the stipulated period. Ex: O/S proposal Deposits, Policy
Deposits, Cheques cancelled Account etc. No permission from the Competent Authority is required to
write back liabilities. But for making subsequent payment, permission of the Competent Authority is
necessary.
38. What is a Budget? When it is prepared?
ans. Budget is a statement expressed in financial or quantitative terms. It prepared at the beginning of
the year.
39. What is meant by planning and performance budgeting?
ans. Planning involves selecting enterprise objectives and departmental goals and determines the ways
of achieving them within a given period of time. The long term plan is the preparation of profile. Short
term plan is the performance budget for one year.
40. What is conservation ratio?
ans. It is a ratio showing the relation of Renewal premium of the current year with the total premium of
previous year.
41. What is renewal expense ratio?
ans. Renewal expenses ratio is the proportion of the renewal premium income spent in payment of
renewal expenses.
42. What is overall expense ratio?
ans. Overall expense ratio is a ratio expressing the total management expenses in relation to total
premium income.
43. Outstation cheques
A) Outstation cheques shall be accepted towards payment of first premium under new proposals. An
outstation cheque is cheque drawn on a bank situated outside the administrative jurisdiction of the
Branch Office. Such Cheque should be accompanied by declaration signed by the Drawer and it can be
accepted at the counter after taking the recommendations of Sr. Branch Manager. The bank charges
shall be borne by the proposer and shall form part of the proposal deposit. In the event of dishonor of
outstation cheque the service charges in addition to the bank charges levied by the bank shall be
recovered from the agent. Co-operative and Grameena banks outstation cheques should not be
accepted. However if the cheque payable at par at all the cities,such cheque can be accepted .

15
44. Excess found in cash
A) If there is any excess amount found in the cash at the end of the working day the same shall be
recorded in DCB and the same on the next working day credited into excess in cash account by issuing
a MR. After identifying the reasons for excess in cash the same may be refunded to the concerned under
sanction of officer-in-charge.
45. Refund of deposit through money orders
A) Deposits can be refunded by money orders at the party’s cost up to 1000/-, in such cases an advance
receipts must be obtained from the party along with the letter from the party
47. Mandatory Quoting of PAN as per CBDT.
A) According to the CBDT quoting of PAN is mandatory for any payment to the Life Insurer exceeding
Rs.50000/- in a financial year.
48. Abbreviations
NEFT: National Electronic Funds Transfer
RTGS: Real Time Gross Settlement
CBS : Core Banking Solutions
IFSC : Indian Financial System Code
AML : Anti Money Laundering
KYC : Know Your Customer
TDS : Tax Deducted at Source
PAN : Permanent Account Number
TCS : Payment of Tax Collection at Source
NRI : Non Resident Indian
DCB : Daily Cash Balance Book
PML : Prevention of Money Laundering
CGST : Central Goods and Services Tax
SGST : State Goods and Services Tax
IGST : Integrated Goods and Services Tax

16
 CLAIMS MATTERS

1. State the rate of Penal Interest?

ans. Coporation declares penal interest rate every year 2020-2021 is 6.65% .
2. What is meant by Early claim?
ans. When a policy results into claim by death within three years from date of commencement of policy,
on date of issuance of policy on the date of revival or reinstatement of policy, it is known as early claim.
3.What are the different Claims forms in respect of Early Claims?
1)Early Claims Claim Form ‘A’
To be completed by the claimant. The form should be duly witnessed and
attested/countersigned by a person/authority mentioned in the form. In case
of claimant filled the Form in vernacular, the same to be attested by the witness.
2)Claim Form ‘B’ To be completed by the last Medical Attendant.
3)Claim Form ‘B1’ To be completed by the Hospital Authorities.
4)Claim Form ‘C’ By a friend who witnessed the Cremation of Burial. He should neither be a relative nor
nominee.
5)Claim Form ‘E’ Employers’ Certificate furnishing the full details of leave from a date 3 years prior to
the date of risk till date of death with copies of leave applications and
medical certificates.
Affidavit in lieu of B, B1
In case where the deceased is not hospitalized, this affidavit is to be submitted
by an independent person who has not filled Claim Form C.
Form 5152 This form is to be submitted in cases were the deceased was treated by a
family doctor before being attended by the last Medical attendant.

4. What do you understand by claim form A?

ans. This form is to be completed by the person entitled to the policy money giving all the particulars of
death of life assured.
5. What do you mean by claim form E?
ans. This form is to be completed by the employer of deceased giving the details of leave taken by the
insured during the last 3 years prior to DOC or DOR
6. What is meant by Discounted Claim?
ans. The surrender value payable within a period of one year before the date of maturity is known as
discounted claim.
7. What is claims concession?
ans. Under this concession, under a reduced paid up policies if at least 3 years Premiums have been
paid and if death occurs with in 6 months from the date of FUP, If the Premiums have been paid for 5
years and Death occurs with in one year Corporation pays the claim for the full sum assured instead of
paid up value.
8. Duration of a policy under a death claim is 21 years two months 13 days. The policy was taken
under 76-25. The assistant gave FAB for 21 years. MY opinion is that the FAB is to be given for 22
years. Since mode of payment is yearly, what is your opinion?
Ans: No FAB is payable now w.e.f. 1.1.2007 under Money back policies under death claim.Premium has
to be recovered for balance months to complete pol anniversary and pay for 22 years.
9.How can early claims be controlled?

17
There is an inverse relationship between underwriting and early death claims, i.e. if we do good
underwriting, we should expect less number of early death claims.
The mortality investigation conducted for the period 1998-2000 revealed that there is a high incidence
claims – both early and non-early – under many Divisions. There is therefore a need to improve our
underwriting standards. All the offices of the Corporation should have strict control over medical
examination, age proofs, etc. Rules should be observed in the appointment of Medical Examiners,
uniform distribution of cases, sample recheck up, introduction of clients for medical examination etc.
Divisional Offices should hold a seminar of medical examiners with a view to train them. The higher
offices should hold a meeting of Divisional & Zonal Medical Referees. The Corporation should make a
review of its underwriting practices on the basis of its own experience as well as in consultation of the re-
insurers.
10. What is an indisputable clause? Where do you find this?
A) No policy can be called in question after a period of 3 years from the date of issue on the ground that
any statement in the proposal or related document was false or inaccurate. Section 45 of insurance act
1938- indisputable clause.
11. Is there any maturity date for whole life policies?
ans. The policy holder may opt for policy monies on completion of 80 years of age by the LA.
12. In case of non-admission of age, what will you do when you are settling maturity claims and
death claims in your BO? Will you call for the age proofs? Who is the competent authority to
waive?
ans. Upto SA of Rs.50,000/- in case of Maturity Claims and upto 25,000 in case of Death Claims need
not call for age proof. DM is the competent authority to waive.
13. Why maturity claim intimations are to be issued 6 months in advance for paid up polices
whereas only 3 months in advance for in force policies?
ans. To enable to settle maturity claims within maturity dates we have to trace out the policyholders
latest address well in advance in case of paid up policies.
14. When is a person presumed dead?
ans. After 7 years of missing for which a certificate from court is required.
15. When do you call for an existence certificate?
ans. For payment of annuities/Claims in installments after every 5 years. If annuity payment is under
option F , it is every year.
16.When do you pay penal interest in claims ? Upto what limit can a Branch Manager sanction ?
What is the present rate?
Ans . When Maturity claim or sb is paid late beyond one month from DOM branch upto Rs.10000/-. For
2020-21 financial year it is 6.65%. beyond that full amt Manager (Claims)
17. Why should we offer the claimant to effect the payment of policy moneys in claims and why
should we pay penal interest for delayed payment.
Ans. We are expected to settle claim before DOM or within a reasonable period say one month . If it is
not fulfilled, we have to pay penal interest for delayed payment.

18
18. A policy holder of an SSS policy complaints that he has already paid all the gap premiums
which were shown as gaps while settling his maturity claim. He had already produced certificate
from his employer to that extent. can we waive the premium? If so, upto what extent the Branch
Manager can waive ? upto what extent the Divisional Manager can waive ?
Ans. Divisional Manager can waive upto Rs.3000/-.
19. Who should give the intimation of death in respect of death claims ?
Ans. Nominee or Legal heirs or assignees.
20. What are the basic requirements in respect of death claims ?
Ans. Death certificate, policy bond , claim forms, Evidence of title etc., intimation letter.
21. What is an ex-gratia claim ? who is the Competent Authority to admit such claims.
Ans. Where there is no Legal liability on Corporation, only to mitigate the hardship of the claimant ,
exgratia claims are considered. Sr./ Divisional Manager is the Competent Authority upto SA of 15 lakhs
& Manager claims up to 7.5 laks.
22 .when does a death claim become time barred ?
Ans. When death intimation is received after three years from the date of death, the claim is termed as
Time barred.
23. What are all the probable deductions from Gross Maturity claim ?
Ans. Gap premiums , unpaid premiums during the last year of policy , x-charge, loan , loan interest. etc..
24. When do you write back a maturity claim ? Can the period be reduced in any case ? Who is
the competent authority ?
Ans. All claims after completion of six months will be auto written back by the system.
25. What is the difference in S.B. payment in anticipated endowment and money back policies for
15 years term.
Ans. 20% of S.A. is payable under anticipated policies, 25% of S.A. under money back policies.
26. What is the difference between a paid up whole life policy & fully paid up whole life policy ?
Ans. Under paid up whole life policies, a reduced S.A. with attached Bonus till the date of lapse is
payable on death.Under fully paid up policy full S.A. with accrued Bonus till date of death is payable on
death.
27. What is the difference in settlement of death claim in fixed term marriage endowment and
ordinary endowment policies, wherein both the cases, the nominee happens to be the child.
Ans. Under Marriage Endowment S.A. is payable only at the end of the term even death occurs during
the term. Under Endowment S.A.is payable on death.
28. What are the settlement options ?
Ans. L.A. can opt for options for the net claim payable be paid in installments spread over a specified
period or he may opt to receive the same in annuity either for life or for certain or commuted value
29. When do you allow extended disability benefits?
Ans. On payment of extra premium of Rupee 1/- under the policy when the life assured meets with an
accident and becomes permanently disabled and he would not be in a position to earn his livelihood.
30.When do you insist for a succession certificate for settlement of claims. Ans. Where there is no
title , we require succession certificate. But upto 10 lakhs we are taking IB with surety provided there is
no dispute among class I heirs.

19
31. Who is de facto guardian?
ans. When there is no natural guardian and the minor is living with a close relative, he is called de facto
guardian.
32. Is an adopted son considered a class-I legal heir under Hindu Succession Act? ans. Yes.
33. To what category of legal heirs do the parents of a deceased policyholder belong, if the PH
happens to be the Hindu & Male?
ans. Mother is class I heir, father is class II heir.
34.What are the strict legal proves of title for settlement of death claims?
ans. Succession Certificate,
35. Who is the competent authority to waive the strict legal proof of title? and to what extent?
Ans.ame of Authority Class – 1 heirs Class – 2 heirs
1.Manager Admin. DO 2 lac NIL
2.CM incharge/SBM 5 lac 3 lac
3.BMC,Chief Manager 10 lac 6 lac
4.SDM Full. Full
36. An administrative officer of a BO argues that an Investigation need not be made at all upto
5000 SA in respect of early death claims. What is your opinion?
ans. Upto Rs.100000 investigation can be waived. Except high risk plan and policy issued with term rider
and critical illness rider.
37.The DO file of a GTB policy is not available. But it came up for maturity. Since it was a new BO,
no senior officer was posted. The assistant as well as the HGA do not know the procedures well.
The policyholder argues that there are some options available for him and he wants an immediate
decision. If you were to be in that position, what will you do? What are the options?
ans. If the original policy bond is available, we may settle the MC after verifying the same. If he wants to
exercise options, the same may be allowed and steps may be taken to trace out the file.
38.What are the channels at different levels open to the claimant of repudiated claim for
consideration?
ans. Claimant may appeal to the review committee at Z.O.C.R.C. If they upheld the repudiation then he
may appeal to Insurance Ombudsman.
39. What is the Extended claim concession?
ans. The premiums are paid for 5 years and there after not paid, policy to be treated as inforce.If death
occurs within 12 months from FUP, full SA along with vested bonus is paid.
40. What are concessions giving to the policy holders for speedy settlements of claims? Why
should we do?
ans. Waiving proof of title upto settling on the basis of indemnity bond to class 1 heirs on joint discharge,
settling on exgratia basis, waiving policy bond, waiving admission of age subject to rules etc., to mitigate
the hardship to claimant.
41.When a claim can be repudiated and by whom?
ans. When there is a proof of suppressing of material facts by the Life assured at the time of taking
policy the claim can be repudiated. DM in charge is the competent authority.
42. What is a Rival claim?

20
ans. When a claim is made by a person other than nominee. It is the rival claim.
43. During the last week a passenger ship carrying 1500 people collided with an oil tanker and
almost all the passengers died. In those victims some are Indians. The claimant expressed their
helpless ness to produce death extract. I am quite sympathetic but how to settle the claim in the
absence of death extract.
ans. List of victims can be obtained by ship authorities and claim can be settled without insisting
individual death certificate.
44. You are an AAO in PS dept,. of DO. In claim party died intestate. He was having 5 children(all
are major). In form no.3806 eldest son who is aged 32 did not figure. BM strongly recommended
settlement stating that the eldest son got separated from others. Do you admit the claim, and
waive the legal proof of title, if so why?
A) No, we can not waive legal evidence of title because all children have equal legal right to claim the
money since he is a class 1 legal heir.
45. A policyholder died intestate. Claim payable of Rs.1,51,200/- who should waive the strict legal
proof of title?
A) BM(I/C) can waive strict legal proof of title upto 7.50 lakhs.BMC- upto 10 lakh.
46. In case of non resident policy brother of a policy holder wishes to pay premiums in
cash/cheque. Have you got any objection if so, what is your objection and why?
ans. No, brother can pay cheque through NRI a/c.
47. In Q.No.172 if gross claim payable is 51200/- and net amount payable is 39,175/- who should
waive strict legal proof of title?
ans. BM(I/C) upto 7.50 lakh can waive.
48. In respect of SB payment when the policyholder is in abroad how can repay SB amount?
A) SB payment may be paid to LA to his a/c in India or to close relatives in India as per latest procedure
when there is file.

49.State the rate of Interest on Ex-gratia Claim?

Ans. The Penal Interest will be 6.65% this financial year. For the Financial year 2020-2021 the rate of
Penal Interest based upon the Bank rate will be 6.65% p.a.
50.What are the different Claim concessions available to the Policy holders?
1.Claims Concession:
The premium due on a certain date should be paid on or before the due date, or within the Days of
grace. After the Days of the grace the Policy will Lapse. In a case of Death , the reduced paid up value, if
any will paid.
Claim Concession: However, under Claims Concession, Full Sum Assured is paid to reduced paid up
Policies instead of paid up value providing the two conditions are satisfied:
i) The Life Assured has died within six months from the due date of the first unpaid premium; and ii) The
Premiums under the Policy have been paid for a minimum period of three full years.
Extended Claim Concession :
This is an extension of the above concession. In terms of the concession , claim for the full Sum Assured
is paid under a reduced paid up Policy provided the following two conditions are satisfied:

21
i)The life Assured has died within one year from the due date of the first unpaid
Premium; and ii)Premium under the policy have been paid for a minimum period of 5 years.
51.What are the conditions that should be fulfilled for Chairman’s Relaxation rules?
i. Premium must have been received for a minimum of 2 years but less than3
years.
ii. Scale of Benefits :
A. Death within 3 months from FUP – Full S.A. + Bonus less recovery of premia.
B. Death between 3 to 6 months of the FUP – 50% of S.A.(no bonus, no
recovery of premium)
C. Death between 6 months to 1 year – proportionate notional paid up Sum
Assured (No Bonus, no recovery)
52.What is unconcluded contract? What are the conditions should be fulfilled for payment of
unconcluded contract ?
A. If Death of the proposer occurs due to accident after receipt of all requirements and payment of First
Premium amount but before acceptance of the proposal it is known as Unconcluded Contract.
Conditions: Proposer must have complied with all manual requirements.
a. The proposal should be such as would have been accepted and first premium
Amount is already in deposit.
b. Death must be due to accidents
c. If due to disease onset must be one week after last requirement.

22
 I.T. MATTERS

1) What are the main components of a Computer?

A) Input devices like Monitor, Key board, CPU (Central Processing Unit), Memory, Arithmetic and Logic
Units (ALU), Output devices like Printer are the components of a Computer. The instructions given to the
Computer are called Software.
2) What are the advantages of Front-End applications?
A) Capturing data at the Originating point itself; Validation at transaction level to avoid errors in future;
Providing latest policy status and premium position information; Obtaining latest MIS information; To
attend to the customer with high degree of quality and quick service.
3) What is meant by RFM and AFM?
A) RFM means Requested File Maintenance; To effect changes viz., mode, plan, doc, premium etc. in
the policy records at the request of the policyholder.
AFM means Automatic File Maintenance; Maturities, SB dues, conversion in case of plan 27, vesting of
age etc.,
4) What are LAN, MAN, WAN, IVRS?
A) LAN : LOCAL AREA NETWORK
MAN : METRO AREA NETWORK
WAN : WIDER AREA NETWORK
IVRS: INTER-ACTIVE VOICE RESPONSE SYSTEM-(No-1251)
5) Who form the CORE GROUP in a Front-End branch?
A) BM constitutes a core group with officers and HGAs depending on the need maximum strength 15.
Core group is responsible in allotting password/ensuring daily updation/system administration.

6) What is a password and what is its importance?

A) Password is a secret code to get access to a system. Only the person knowing the password can
access the system and others are denied access. The Password to any particular module is allotted by
the system administrator.
For instance cash module is restricted to Cashiers. Individual password on the basis of SR no is the one
and only security for an employee. It is very much essential that the secrecy of the password should be
ensured by every employee. If password security is not strictly maintained-i.e., if your password is leaked
to another person/employee or outsider, he may use it for his selfish illegal gratification/ misappropriation
of LIC’s money, under your name & SRNO which may result in a vigilance case. So password secrecy
and secutiry are very important.

7) What is INTRA-NET? What do you know about WEB-Site?

The communication system used with the help of Internet-linked PC/Server amongst different Offices-
Branch, Divl. Office, Zonal Office, Central Office and amongst employees, with the help of EXCHANGE

23
2000 SERVER in MS OUTLOOK may be termed as INTRA-NET. WEB-SITE: Web-site is a
Electronically Stored Information Centre which can be accessed by our
employees (as well as Policy holders in case of C.O Web-site: www.licindia.com) The C.O Website
interactive. It gives out and also receives Information (Two-Way communication). The I.P.Address of our
C.O Website is : http://10.240.3.101
The I.P. Address of our Divisional Website is :http://10.0.63.180 and ZO website http://10.5.127.241/
I.P Address of efeap of Goa Division : http://10.0.58.166:8080/eFeap/

9) What is the significance of Registration date in NB module?

A) The date of registration of Proposal shall be by default the current date. But to meet the rush of the
proposals, a time interval of one days is allowed in NB module. But it is essential to invoke the relevant
option in the module to avail this concession.
10) How the branch office does the Annual Valuation jobs?
A) The policies added to the previous years on account of New business, Transfer-in, Revivals,
Reinstatements are taken; the exit policies of Surrenders, Fore-closures, Maturities, Death claims,
Lapses without paid-up value etc., are reduced. The final figure reconciled with the ON/OFF registers is
arrived manually; the corresponding DP masters are furnished by the DP department.

11) What are the controls exercised in issue of Receipts in Cash Module?
A) The branch offices are supplied with address and serial number preprinted receipts. The F&A
Department of the branch office has to maintain a register for use of these receipts. In case some
receipts are cancelled due to improper printing the same must be preserved duly noting the serial
number in the register. Indent for supply of receipts stationery should be made well in advance as
receipts are printed separately for each branch.
12) How a commission complaint received from an agent is processed?
A) The correctness of adjustment date is to be ensured before from the ledger ( if manual) or from the
premium history file ( if in FEAP). The cash/sss journal is to be verified for finding out the correct reason.
The agency code/ agents eligible code/ license expiry date etc., are to be ascertained before attending to
the complaint. If the transaction is thrown to error list commission is not to be settled manually as the
transaction will be updated subsequently when the error is cleared.
13) What are the main features of cash module?
A) Cashier's day-to-day functions of cash collection, issue of receipts, accounting, cash book
preparation, CDA accounting etc., are mechanized through this module.
14) What are the outputs of NB module?
A) 1. Proposal introduction register
2. NB Adjustment sheets - ORD/SSS
3. Agents introduction/completion register (4006)
4. Agents/DOs index cards

24
5. Policy bonds
6. First premium receipts
7. MIS statements
8. Medical examiners bills
9. FP commission transactions
10. Proposal deposit schedule

15) What are the outputs of PS module?

A) 1. Revival quotation 2. Surrender value quotation 3. Loan quotation 4. Policy status report 5. premium
history 6. Income-tax certificate 7. Lists of Transfer-in cases, Alterations, Address changes, Outstanding
policy deposits, Exit cases. 8. Time-lag print out.
16) What are the outputs of Claims Module?
A) 1. Intimation register 2. Paid register 3. Correction register 4. Work status report 5. Lists of Ordinary
premium recovered, SSS premiums recovered, Gap premiums recovered, Loan recovered, Records
cancelled and outstanding claims. 6. Statements of repudiated claims, written-back claims 7. Statement
of penal interest 8. Discharge voucher 9. Payment voucher 10. Cheque forwarding letter.
17) What are the outputs of Cash module?
A) 1. Cash books of Branch Premium , Proposal deposit, Policy deposit, SSS collection, Loan repayment
and Loan interest and Miscellaneous collections. 2. Lists of Cash and Cheques, Revenue stamps
affixed, Premiums paid through collecting banks and Late fee waived. 3. Printing of Bank pay-in slips for
the day 4. DCB printing 5. Cash updation print outs 6. Cash error lists 7. Misc. account code-wise list 8.
Misc. code-wise list - summary/details. 9. CDAs covering letter to policyholders.

18. What are the outputs of LOANS module?

A) 1. Loan quotations 2. Loan status report 3. Loan quotation for payment of loan interest as on date 4.
Loan quotation for repayment of loan 5. Preparation and printing of loan payment of voucher 6.
Preparation of cheque forwarding letter accompanying the loan payment cheque 7. Loan paid register 8.
Loan repaid register 9. Loan interests and default notices 10. List of foreclosures 11. Loan History print
12. Surrender Quotation 13. SV paid register.

19) What are the outputs of Dev. Appraisal module?

A) 1. Dev. officers basic data 2. Schedule premium statement 3. Printing of salary particulars statement,
voucher for incentive bonus, ACA and reimbursement of expenses payment, voucher for advance IB,
ACA and reimbursement of expences, NGI releasing letter and telephone continuation letter.

20) What is UPS?

25
A) UPS is the abbreviated form of Uninterrupted Power Supply. UPS supplies constant voltage current to
the systems attached to it and ensures a battery back-up in case of power failure through the batteries
attached to it. All the computers should get their current supply through the UPS only to prevent loss of
valuable data in case of power failure.
21) What is Email?
A) Email is an electronic message sent from one computer to another. You can send or receive personal
or business-related messages with attachments like pictures or other documents.
22) What is the INTERNET?
A) The Internet is a world-wide collection of computer networks. It provides access to communication
services and information resources to million of users around the globe. This network of networks, or
'internet' is a group of two or more networks that are:
* Inter connected.
* Capable of communicating and sharing the data with each other.
* Able to act together as a single network.
24) What is green channel Module?
A) It is new option in NB Module introduced with a view to hasten up the process of completion of
individual proposal and simplify the procedure of NB completion. It is an additional Option only. It does
not replace the NB module. The Present NB Module also continues to be in operation.
The Salient features of this option are :-
a) Proposal received by the NB Department-Data keyed in - underwritten - proposal no. generated
b) Cashier collect the money- adjusted directly to First Premium ( No Proposal Deposit)
c) NB Department prints FPR and policy bond and issue the same after stamping and signing across the
counter.
Proposal review slip will not be printed and underwriting decision is given in the
proposal form itself. Green Channel can be exercised only to straight cases. Health extra and
occupational extra cases cannot be completed under Green Channel.
25. What is Single window System?
A). The Single Window System is an arrangement to provide the END-TO-END service to the customer
at a single point.
The salient features of the system are:-
a) Areas covered - Loans/ Surrenders/ Claims/ Revivals and PS functions
b) Employees given access to work in different modules from a single point.
c) Counter-wise, Day-End registers for reconciliation
d) Multi skills of employees
26. What is Branch Managers' (MIS) module? What purpose it serves?

26
A). Branch Managers' module is Management Information System for Branch Managers to give them the
performance of the Branch at a glance. It will help the BMs to drill down a) The specific performance of
Dev. Officers and Agents volumes as well as ratios. b) NB ratios.
It will also give him a composite view of his Branch.
27. What is CUSTOMER RELATIONSHIP MANAGEMENT? What is the role of it in Customer
Relations?
A) Customer Relationship Management is an interactive process that turns Customer Information into
positive Customer relationship. CRM. in relation to information Technology is a method of collecting and
presenting relevant Customer details that an organization can best manage to interface with a customer
in a coherent way. CRM helps the organization and its personnel to see the full picture of the customer.
The two parts of the CRM module are
a) Allotment of Customer folio number of customers having multiple policies.
b) Allotment of Customer Request I.D Number. The two aspects will help the Organization a) To reduce
the cost of communication
b) To identify the High-end customer by consolidating the policies, sum assured and premium.
c) To offer value added services to High-end customer.
d) To make a targeted approach in the marketing area and to have periodic review of each customer
needs.
e) To provide actual mortality experience and actual number of customer to the actuarial department.
f) To keep tracking of requests, identifying the areas of bottlenecks, measuring of time-lags and helps
the management to redeploy or realign the process.
CRM will also helps the customer to see the status of his request at any given point of time.

29. Write short Notes on CORE COMMITTEE?

A). CORE COMMITTEE is a committee formed in Branch Office after introduction of Front end
Application packages to shoulder the responsibilities in form of a Support System. Core committee is
backbone of the Front End System. Its main function is to co-ordinate the activities of each department in
relation to the Front End System. Core committee consists of 15 members. Apart from Programmer who
is the system Administrator, the HODs of other departments such as N.B, Accounts, PS, Sales and
Branch Manager and other HGAs are its members..
One of the Core committee Members will act as the System administrator in the absence of the
Programmer. Core committee members perform the following functions:
iii) Report the UPS/ electrical / Computer problems to programmer/ Branch Manager and see that they
are reported to vendors in a proper fashion.
iv) Password allocation/ access rights for operating system/ starting the machines to day-end jobs and
operating Lan-Menu. He should also possess practical knowledge for taking back-ups.

27
30) INTRANET:-
LIC has an INTRANET which inter connects our Offices and is used to make files
available to employees, send or received E-Mails, host ON-line discussions or publish the information
with in the Organization. The Departments of the Central Office provide information about the latest
circulars and help the Offices in speedy decision making through CO website “Jeevan Sanchar”.

31. New commission package

A) Where ever premium is paid, the commission transaction of the agent is immediately transferred to
the branch to which he is attached. It reduces commission complaints. 32. E-Proposal: The acronym
stands for electronic proposal. This envisages new business related data entry by an agent himself
outside office so that branch can directly take the data into its FP environment.
32. ODS: Online Data Source- Maintained by Central Office IT department. It is a server which hold the
necessary data to cater to the needs of customer portal and agency portal.
33. EDMS- Enterprise Document Management System: It is a mega project of scanning important
papers of a policy file- all policies to e scanned- supported by the technology of HP Company

28
 NB MATTERS

1) What are the Age Proofs that are considered as Standard for the purpose of admitting Age?
A) The following proofs of age are considered as Standard Age Proofs for the purpose of admitting age.
1. Certified Extract from Municipal or other records made at the time of birth.
2. Baptism Certificate.
3. Certified extract from School or College Records.
4. Certified extract from Service Register.
5. Identity Cards issued by Defense Departments.
6. Marriage Certificates issued by Roman Catholic Churches.
7. Domicile Certificate.
8. Passport.
9. Driving License
2) What are the Non-standard Age Proofs?
Other than above standard age proof, all proof treated as a non-standard age proof.

3) What is insurable interest?

A) Insurable Interest is the real interest of the person, (who is benefit from the proceeds) in the continued
life of the insured. There must be a reasonable ground, either pecuniary or based on affinity, to expect
some benefit or avantage from the continuance of the life of the assured. The proposer should suffer the
loss if the life assured dies.
4) What is the doctrine of "Uberimma fides"?
A) In a contract of life insurance there is an implied condition that each party must disclose all material
facts known to him. This type of contract is called a contract of UBBERRIMA FIDES, that is to say,
contracts in which Utmost Good Faith is required. The duty exists on the part of the proposer to disclose
and furnish all material information for proper assessment of the risk by the insurer. The insurer cannot
possibly be aware of all the details of the health, family history, habits and other matters relevant to the
assessment of the risk. The proposer also because of his lack of technical knowledge has to depend on
the Good Faith of the Company to ensure that the terms of the contract are fair and equitable.
5) What is Moral Hazard and how do you suspect the same?
A) The likelihood of hiding or distorting some information affecting the risk appraisal is called “Moral
Hazard”. It occurs through the non-disclosure of material facts pertaining to health, habits, financial and
social status by the life to be assured. There are no parameters to measure the moral hazard.Moral
hazard can be suspected in the following cases.
a) Insurance not supported by adequate Insurable interest.
b) Large amount of Insurance not commensurate with the Income of the proponent.
c) Seeking large amount of Insurance for the first time at a very advanced age.
d) Suppression of previous Insurance History regarding declinature or extra charge.

29
e) Seeking Insurance at a place other than the normal residence of the proponent.
f) Nominee not the nearest dependent of the life to be assured
g) Address care of the Agent. (h) Sudden increase in Insurance.
7) What is Extra Mortality Rating (EMR)?
A Extra Mortality Rating is the probable occurrence of more deaths in a group of same age with specific
impairment when compared to a group of standard lives for the given age.
8) What are the latest MHR limits ?
A)Existing rules regarding completion of MHR are modified w.e.f.05.12.2016,Now
these revised guidelines will be applicable for completion of MHR for NMG, NMS & Medical proposals.
Authorized Agents satisfying minimum business performance (net 15 lives and net S.A 6 lacs for last 3
Financial Years)
Authorized Agents -upto 5 lacs.
BM club & Distinguished club members -upto 20 lacs.
DM Club Member/Specified person of Bank-upto 40 lacs.
ZM Club Member -up to 60 lacs.
Retired LIC employee/CLIA(DM Club) -up to 75 lacs.
Chairman Club Member/CLIA(ZM)/MDRT/Club Galaxy/COT/TOP-up to 100 lacs.
CLIA(CM Club) -up to 125 lacs.
Development Officers/CLIA Corporate club-up to 150 lacs.
Senior Business Associates(SBAs) -up to 300 lacs.
ABM(S),B.M(S) & ABM-in-charge of the Branch- 400 lacs.
B.M, Sr.B.M-in-charge of the Branch 500 lacs.
Manager(sales) 10 crores
Marketing Manager above 10 crores
9. What is meant by Underwriting?
A) It is a process of selection of lives for insurance based on the statistical laws of mortality with a view
to charging sufficient premium as a consideration equivalent to the risk undertaken.
10. What is meant by Financial Underwriting?
A) It relates to moral hazard or in other words to decide whether the income of the proponent is sufficient
to allow the sum assured applied for. Up to 10 to 22 times of the annual income can now be allowed as
insurance basing upon the age groups.

AGE Max. Insurance Max. Insurance

allowed is Multiple allowed is Multiple of
of average income average income for
for last 3 years is last 3 years is more
less than Rs. 10 than Rs. 10 Lacs.
Lacs.
Up to 35 Years 25 Times 30 Times

30
36 to 45 Years 20 Times 25 Times
46 to 50 Years 15 Times 20 Times
51 to 55 Years 15 Times 15 Times
56 & Above 10 Times 10 Times

INCOME PROOF
TRSA (Existing+ Proposed) Income Proof
Up to 25 Lacs (Other than Term Plan & TR) As declared in Proposal Form & MHR
Up to 25 lacs with Term Plan/TR PFQ/CA Certificate
25 to 50 lacs without Term Plan/TR
Above 25 lacs with Term Plan/TR 3 Years ITRs, Form-16, Form-26AS
Above 50 lacs without Term Plan/TR P/L A/C & Balance Sheet.
11. What is the minimum premium under different modes?
A) Monthly/SSS: Rs. 75/-; Quarterly: Rs. 300/-; Half yearly: Rs. 600/-; Yearly: Rs 1200/-
12. What is meant by SUC?
SUC is defined as “Actual Sum Assured” under all the current proposals and policies taken in last two full
years on the basis of commencement.
13.What is the maximum age at entry for non standard age proof?
A) 50 years (nbd) of age
14. What is minimum age extra chargeable?
A) Rs.1.50 %. SA is the minimum age extra chargeable.
15. What is the maximum maturity age and term in case of Non-Standard Age Proofs?
A) NSAP Max. Maturity age is 65 years & Max. PPTerm is 25 years
16. What is the maximum limit of AB & what is clause 46 ? When AB will cease?
A)Max. limit of AB is 100 lakhs. & clause 46 restricts AB to 100 lakhs. AB will cease at 70 Years of age.
In case of Plan 847 Jeevan Shiromani AB up to 200 lacs allowed.
18. What are maximum limits of SA in case of NMG (Males, Females) & NMS
(Employees)?
A) The Max.limit of SA in case of NMG (Males, Females) is:
1. For Major males and literate females
Sr.no. Age up to SAP

1 NMG Age up to-35 8 lakhs

36 to 45 5 lakhs
46 to 50 3 lakhs
2 For self Age up to 35 25 lakhs
employed
professionals
Age 36 to 45 15 lakhs
Age 46 to 50 08 lakhs
3 NMS Up to 35 30 lakhs
Age 36 to 45 20 lakhs

31
 Age 46 to 50 10 lakhs

19. What is the Term Rider?

A) The Term Rider is a additional death benefit given by LIC on payment of extra premium for new
policies issued .
20.What are the salient features of the Critical illness Rider?
There has been consistent demand for coverage of major illnesses along with our existing basic plans. It
has, therefore, been decided to introduce a new rider, ‘Critical Illness Rider’ w.e.f. 19th December, 2016.
NB PR/156/2016
21. What are the conditions for LIC Agents to consider under NMG professionals?
A) 1. Not less than 5 Years of service
2. Drawing of Ren. Commission of not less than Rs.10,000/- per year during the last three years.
22. What is the maximum insurance allowable to minors under risk plans?
A) Equellent to proposers rated up insurance subject to maximum of 200 Lacs. Up to Rs.10 lac and if
PWB taken 25 lac without insisting of Parents insurance.
23. Why the husband insurance is necessary in case of housewives?
A) Proposals on lives of housewives are accepted with matching insurance on husband life because
Everyman has insurable interest in his own life to an unlimited extent, though this is restricted by his
premium paying capacity. The question of insurable interest will therefore arise only in case of policies
taken on the lives of others. Most married women have no income of their own and depend on their
husbands for their maintenance. So, there is no capacity to pay which attracts moral hazard. But, most
married women are a source of income to the family in the shape of house-hold services rendered by
them. So husband has insurable interest on his wife. . Thus husband insurance is necessary in case of
house wives proposals.
24. What are the important clauses to female underwriting?
A) Cl 4(b) - Spl.Clause applicable to house wives falling under category III and between age 18 and 30
yrs as on the date of proposal.
25. Female category
A(I) A(II) A(III) B(I) B(II)
Filing ITR/ Own income Own income Housewives Housewives
Eligible under that can be that can not be Graduate and Below Graduate
NMS ascertained ascertained Above

26. What are the rules regarding the payment of medical fees?
A) Upto 15 lacs – -Rs. 110/-
15,00,001 to 24,99,999 -Rs. 130/-
25 lacs to 49,99,999 -Rs. 160/-

32
50 lacs to 99,99,999 – Rs. 175/-
1 Crore & above - Rs. 200/-
Above rates are also applicable where FMR done by DMR/TPA.
27. Is deaf & dumb proposer insured, if so how?
A) Yes, the proposal on the life of proposer who is deaf & dumb may be accepted after referring to DMR
with obtaining Deformity and CNS questionery information from DO/ABM whether the proponent is
mentally sound and the proponent is gainfully employed, as per DMR opinion.
28. How the Policy Document is stamped with insurance stamp?
A) 20 paise per 1000 SA (SA=Basic SA=Plan wise SUC+DAB+TRB+PWB) if applicable.
31. Who are our Re-insurers?
Swiss Re, Munich Re and General Insurance Corporation of India and RGA Re are our Re-insurers.
32. What are the key result areas in NB Dept.?
A) 1. Issuing of policies should be within 5 days from the date .of receipt of final
requirements.
2. Outstanding proposal deposit should be less than 4% of first premium income.
3. Outstanding proposal deposit should be less than 2% of total premium income.
4. Purity of data should be maintained.
33. When the undelivered policies should be destroyed?
A) Undelivered policies where second premium is not paid and policy is lapsed for more than a year
should be destroyed. Where more than one installment is paid but policy is in total lapsed condition
without acquiring paid-up or surrender value it may be destroyed after 3 years from the due dt.of FUP.
34. How to deal when the first premium cheque is dishonoured & fresh payment is not received?
A) When the first premium cheque is dishonored the proposal number is to be traced and the stage at
which the proposal lies is to be examined. When the proposal is not yet completed the information
regarding cheque dishonor is to be communicated to the proposer by regd.post.ack.due requesting him
to pay the amount and bank charges within a reasonable time. The copies of the letter may be endorsed
to the agent & dev.officer for their information and necessary follow-up. CDA charges Rs.100/-,
processing charges Rs.50/- pol. bond making charges Rs.75/- plus stamp duty.
35. What is the CEIS rebate allowed to Corporation Employees.
A) 10% rebate in tab.prm is allowed if any one of them is employed in LIC provided premiums are
payable for at least 15 yrs. Rebate under single premium 2%
36. When MHR is necessary?
A) When the sum proposed including previous policy on the same life taken during the last one year
exceeds 1 lac, MHR is necessary from the Competent Authority. However up to 2 lacs concepts of SUC,
TASA should not be made applicable for the purpose of MHR .For NMG cases, minors, House wife and
widows MHR is compulsory.
37.What is Cl 10(a)?

33
A) Cl 10 (a) is spl.minority clause undertaking by proposer regarding utilization of policy monies for the
Benefit of Life Assured.
38. How the policy of non-resident is dispatched?
A) The policy document of NRI is to be dispatched to the only Indian Addressee specified in the
questionnaire
39. What is the Max. fee for ECG with report?
A) Rs. 110/- is the Max. fee for ECG (with report at rest)
40. What is proposer declaration in proposals?
A) Proposal includes declaration by the proposer to the effect that the statements and answers furnished
by him in the proposal are true and that he agreed to those statements and declarations made by him
before the medical examiner shall be the basis of the contract between him and the insurer. This
declaration protects the insurer as fully as possible against fraud and against the difficulty of proving the
material of the enquiries to the satisfaction of the court of law.
41.What is meant by KEYMAN INSURANCE ?
A) KEYMAN INSURANCE means insurance granted to the KEYMAN in a business organization who
stands as a human asset to the organization by processing the managerial skill and the experience to
direct the efficient use of the material resources of the business, whose loss would be a severe shock to
the continued success of the organization.
42.What are the Plans now allowed under KEYMAN INSURANCE?
A)New Anmol Jeevan and Jeevan Amar.

34
 WRITE-UP FOR FIELD FORCE ON SOME LATEST CHANGES IN NB DEPT.
Revision in underwriting rules in view of the Corona Virus Pandemic
Term Plans
1) Covid Questionnaire compulsory {Revised version 5 (with 8 questions)} is to be used).

2) NRIs – Postpone till 31.12.2020

3) Resident Indians :

 EMR Restrictions- Resident Indian – EMR above +75 – Postpone till 31.12.2020

 History of foreign travel- If there is history of foreign travel in the last 14 days from the date of
proposal, proposal will be postponed till completion of 15 days from first port of entry in India. Proposal
can be considered as per rules provided a)proposal is dated 15 days after first port of entry in India and
b) Covid Qn is satisfactory

 Travel plans-If LP has plans to visit any foreign country till 31/12/2020-Postpone till completion
of 15 days from first port of entry in India. After postponement period, proposal can be considered as per
rules provided a)proposal is dated 15 days after first port of entry in India and b) Covid Qn is
satisfactory.

 Health Care Workers-Health Care workers /or if enrolled as a Corona warrior or working in a
Covid Hospital or in close contact with Covid-19 infected individuals-Maximum Term Insurance from
01/01/2020 till date is Rs 100 lakhs (Sum At Risk).(Health Care workers here includes Doctors, GP’s,
Surgeons, Therapists, Nurses, Pathologists, Paramedics, Pharmacist, Ward helpers, Individuals working
in Hospitals/Clinics.)

 If a proposer is tested Covid-19 positive – Postpone for 3 months from date of latest
negative Covid Report - After postponement period case will be underwritten by Central Office.

4) Merchant Mariners, Pilots, Flight crew – If Travel plan due to occupation, Term plans
acceptable as per plan conditions. Medical Examination is compulsory. EMR restrictions will be as
applicable to other Resident Indians

If travel plan is not related to occupation, same rules as applicable to other Resident Indians

(These are the broad guidelines. For case specific guidelines ,which may vary based on the replies given
in the Covid Questionnaire, CO/NB &R Circular No 258 has to be referred)

Annuity Plans
1) Covid-19 Questionnaire - Not required under Jeevan Akshay VII & PMVVY – no change in
underwriting rules due to pandemic

Covid-19 Questionnaire (Revised Version-5 with 8 questions) – Compulsory in all cases of Jeevan
Shanti- Deferred Annuity
2) NRI/FNIO/OCI – Jeevan Shanti Deferred Annuity
a) Not allowed to NRIs/FNIOs/OCI of countries under Residence Gr I to IV –

35
 b) Allowed as per plan conditions to NRIs/FNIOs/OCI of the following 14 countries of Gr V –
Singapore,Hongkong,UAE,Oman,Qatar,Saudi Arabia,Sri Lanka,New
Zealand,Australia,Bahrain,Kuwait,Fiji,Malaysia & Mauritius.
For remaining countries of Gr V – Deferment period upto 5 years allowed
c) Mail Order business allowed to NRIs only, subject to Video MHR and recommendations of
Branch Incharge/Direct Marketing Official in letter format.
d) Mail Order Business not allowed to FNIOs

3) Travel Plans and Travel History

i) Travel Plans
a) If proponent has future plans to visit any country in Residence Groups I to IV before 31/12/20---
Jeevan Shanti Deferred Annuity not allowed as per plan conditions.

b) If proponent has future plans to visit any of the following 14 countries in Group V before
31/12/2020 namely-Singapore, Hongkong, UAE, Oman, Qatar, Saudi Arabia, Sri Lanka, New Zealand,
Australia, Bahrain, Kuwait, Fiji, Malaysia and Mauritius—Jeevan Shanti Deferred Annuity -Allowed as per
plan conditions

c) If proponent has future plans to visit any of countries in Group V (other than the 14 countries
mentioned above)before 31/12/2020-Deferment period is to be restricted to 5 yrs

ii) Travel History –If proponent has history of foreign travel in the last 14 days from the date of proposal
then,
Postpone till completion of 15 days from first port of entry in India. After postponement period, proposal
can be considered as per rules provided…..
a) proposal is dated 15 days after first port of entry in India and
b) Covid Qn is satisfactory
4) If diagnosed as positive for Covid-19- Postpone till completely cured
a) After postponement period case can be accepted subject to,
b) Self declaration of life proposed that he/she is healthy and does not have any Covid related symptoms
(These are the broad guidelines. For case specific guidelines which may vary based on the replies given
in the Covid Questionnaire, CO/NB &R Circular No 259 has to be referred).One important point to note
is that cases of Jeevan Shanti Deferred Annuity are considered on the basis of satisfactory a)
Covid -19 Questionnaire and b) Self declaration from life proposed that he/she is healthy and
does not have any Covid-19 related symptoms after the respective postponement period in cases
where life proposed has been under home quarantine, has had symptoms similar to Covid-19 or
has been tested +ve for Covid-19.
All plans other than Term Plans and Annuities
1) Covid Questionnaire compulsory (Revised version 5 (with 8 questions) is to be used).
2) Health Plans-Table No 904 & 905-No change in underwriting guidelines-Covid
Questionnaire is not required.

3) EMR Restrictions- EMR above +150 – Postpone till 31.12.2020

Age above 60 & EMR above +75 – Postpone till 31/12/2020
For Health Care Workers working with Corona patients-EMR >+100-Postpone till 31.12.20

4) NRI/FNIO’s/OCI-

36
 If proponent is temporary/permanent resident of any of the following countries in Group V
countries namely -Singapore, Hongkong, UAE, Oman, Qatar, Saudi Arabia, Sri Lanka, New
Zealand, Australia, Bahrain, Kuwait, Fiji, Malaysia & Mauritius-

All plans allowed subject to

a) Replies to all questions of Covid Qn are satisfactory
b) Medical is compulsory
c) Mail Order business is allowed subject to Video MHR and recommendations of Branch Incharge in
letter format
d) Mail Order business is not allowed to FNIOs
If proponent is temporary/permanent resident of any of the countries (from Group I to V)
other than the 14 countries mentioned above-
All plans other than Single Premium plans-Postpone up to 31/12/2020
Only Single premium plans –LIC’s Single Premium Endowment, New Bima Bachat and Nivesh Plus with
Option I where Basic SA is 1.25 times the SP are allowed as per plan conditions provided
a) Date of proposal is 15 days after first port of entry in India
b) Medical is compulsory
c) Mail Order Business is not allowed
d) Covid Qn satisfactory
5) Merchant Mariners, Pilots, Flight crew – If Travel plan due to occupation, All plans
acceptable as per plan conditions. Medical Examination is compulsory. EMR restrictions will be as
applicable to other Resident Indians

If travel plan is not related to occupation, same rules as applicable to other Resident Indians

6) History of foreign travel-If there is history of foreign travel in the last 14 days from the date of
proposal, proposal will be postponed till completion of 15 days from first port of entry in India. Proposal
can be considered as per rules provided a)proposal is dated 15 days after first port of entry in India and
b) Covid Qn is satisfactory

7) Travel plans-If LP has plans to visit any foreign country till 31/12/2020-Postpone till completion
of 15 days from first port of entry in India. After postponement period, proposal can be considered as per
rules provided a)proposal is dated 15 days after first port of entry in India and b) Covid Qn is satisfactory.

8) Health Care Workers working with Corona patients-Maximum Sum at Risk under savings
plans (other than Term plans and Annuity) from 01/01/2020 till date is Rs 100 lakhs. EMR restriction up
to +100.
If not working with Corona patients then there is no restriction on Sum At Risk and EMR restriction will
be as applicable to other lives who are not health care workers.

9) If a proposer is tested Covid-19 positive – Postpone for 3 months from date of latest negative
Covid Report - After postponement period case will be underwritten by Central Office.

(These are the broad guidelines. For case specific guidelines, which may vary based on the replies given
in the Covid Questionnaire, CO/NB &R Circular No 258 has to be referred)

37
 Plans available to NRIs/FNIOs/OCI in the present scenario
• Term Plans not allowed
• 905 Plan is not allowed
• 904 Plan is allowed to NRIs/FNIOs of all groups except Residence Groups I & II
• Jeevan Akshay VII is allowed to NRIs of all Residence Groups without any restrictions.
Plan is allowed to FNIOs with valid OCI card. Mail Order Business is allowed to NRIs of Group V only,
subject to Video MHR and recommendations of Branch Incharge /Direct Marketing Official in letter
format.

• Jeevan Shanti Deferred annuity is allowed as per plan conditions to NRIs/FNIOs/OCI of the
following 14 countries of Group V namely- Singapore, Hongkong, UAE, Oman, Qatar, Saudi
Arabia, Sri Lanka, New Zealand, Australia, Bahrain, Kuwait, Fiji, Malaysia & Mauritius.
• Deferment period is to be restricted to 5 years under Jeevan Shanti plan to NRIs/FNIOs/OCI
of remaining countries of Group V (other than the 14 countries of Group V mentioned above)
• Jeevan Shanti Deferred Annuity not allowed to NRIs/FNIOs/OCI of countries falling in Group I to
IV.

• All savings plans allowed as per plan conditions to NRIs/FNIOs/OCI of 14 countries of Group V
namely- Singapore, Hongkong, UAE, Oman, Qatar, Saudi Arabia, Sri Lanka, New Zealand, Australia,
Bahrain, Kuwait, Fiji, Malaysia & Mauritius provided

a) Replies to all questions of Covid Qn are satisfactory

b) Medical is compulsory

c) Mail Order business is allowed to NRIs subject to Video MHR and recommendations of Branch
Incharge in letter format

d) Mail Order business is not allowed to FNIOs

• If proponent is NRI/FNIO/OCI of any of the countries (from Group I to V) other than the 14
countries mentioned above-
All plans other than Single Premium plans-Postpone up to 31/12/2020
Only Single premium plans –LIC’s Single Premium Endowment, New Bima Bachat and Nivesh Plus with
Option I where Basic SA is 1.25 times the SP are allowed as per plan conditions provided
a) Date of proposal is 15 days after first port of entry in India

b) Medical is compulsory

c) Mail Order Business is not allowed to both NRIs and FNIOs

d) d) Covid Qn satisfactory

Medical Examiner’s Report (MER)

38
 The Full Medical Report (FMR) will now be known as the Medical Examiner’s Report(MER)
 The Medical Examiner’s Report will be conducted in 3 forms-Physical Medical Examination, Tele
Medical Examination and Video Medical Examination.
 Panel Medical Examiner’s can conduct Physical Medical examination only.
 Medical Service Provider’s (MSPs) can conduct medical examination in all the 3 forms i.e.
Physical Medical Examination, Tele Medical Examination and Video Medical Examination.
 The format for all the 3 forms is the same and has been revised
 The Medical examination will be conducted with identification and the panel medical examiner
has to record the details of the identity proof in the MER.
 In the case of Tele and Video MER by the MSP, the identity proof submitted along with the
proposal has to be submitted with the proposal papers.
 The Medical Examiner can proceed with the medical examination on receipt of consent of the life
proposed as mentioned in the MER Format.

Criteria for obtaining Physical MER, Video MER and Tele MER

Proposals where only FMR is required Tele MER or Physical MER is to be obtained

Proposals where special medical reports are Tele MER or Physical MER is to be obtained
required as per the medical grid and SUC<=Rs
50 Lacs

Proposals where SUC is >Rs 50 Lacs Video MER or Physical MER is to be obtained

Proposals under Term Plans irrespective of Video MER

SUC

Mail Order Business where no special reports Physical MER/Video MER

are required as per the medical grid

Physically challenged proponents (persons Physical MER

with disability) and proposers who are illiterate
irrespective of SUC

In respect of minor lives Juvenile FMR as per the existing practice

If required, the underwriter may call for any alternate MER.

Medical Service Providers (MSPs)

The term MSP is a broader term which includes TPAs and health aggregators. The MSPs will conduct
pre policy medicals, revival medicals and special medical examinations.
The agreement with the new MSP’s is effective from 01.10.20, for a period of 3 years.
List of MSP’s empanelled for WZ Divisions is attached.

In addition CO has implemented the MSP/TPA Module in a few Divisions on test basis so that the entire
process from registration of proposal, intimation to TPA, receipt of spl. Reports and billing and payment

39
to MSP is through the module. MDO-4 and Thane have been chosen as the Pilot Divisions for
implementation of the MSP Module in Western Zone.

The process flow of the MSP Module will be as under:-

 Registration of proposal by the Branch Office in NB Module with choosing of Medical

Examiner/MSP
 If MSP is chosen at the time of registration MSP Module has to be used.
 Unique No will be generated at the time of registration.
 There will be Auto Trigger of mails for medicals to be conducted from Branch to empanelled MSP
twice in a day at 2.00 p.m and 5.00 p.m.
 SMS Alerts will be triggered to Life Proposed and Agent on MSP Allotted.
 MSPs will contact Life Proposed through telephonic call/mail through their call centres for fixing
appointment with DCs/hospitals or home visit of technicians/VMER/Tele MER as the case may be.
 Scanned Medical reports will be uploaded to LIC server by the MSPs for access by the Branch
Office. The MSP will upload reports directly to LIC server through a web link given in the mail to the
service providers through MSP Module
 Branch Office would enter the details viz.type of special report, date etc in the Module and
proceed with underwriting (an intimation is sent to the Division from the Module on the details of the
special reports generated.
 Provision has also been made for extraction of Medical / Special Reports of previous policies
which are valid as on the date of the new proposal which will get attached to the new proposal.
 Monthly invoices will be generated by Division and sent to MSP’s for reconciliation.
 On confirmation and tallying, a final invoice bill would be submitted by the MSP for which the
payment would be processed.

40
 OS AND P&IR MATTERS

1) Define the expressions 'SERVICE' and 'DUTY'?

A) Service means the period spent on duty including EOL. Duty means the period spent in the service of
the Corporation but excluding the period of leave of any kind except CL & QL.
2) Is Suspension a Penalty under Reg.39(1)?
A) Suspension is not a Penalty. It is temporary cessation of work.
3) Name the allowance paid to an employee who is under suspension?
A) Subsistence Allowance
4. What is Staff-regulation that deals with unauthorized absence?
A). Staff Regulation -Reg 61(g)- 30 deals with the unauthorized absence.
5) Regulation 39 of LIC staff regulations deals with what?
A) PENALTIES
6) What are the various penalties that can be imposed on an employee under regulation
39(1)?
a. Censure
b. Withholding of one or more increments permanently or for specified period
c. Recovery of pecuniary loss caused to the Corporation by the negligence or
breach of orders.
d. Reduction to a lower service, post or to a lower time scale or to a lower stage
in a time scale.
e. Compulsory retirement
f. Removal from the service which shall not be a disqualification for future
employment and
g. Dismissal.
7) What are the various stages of disciplinary proceedings?
A) 1. Preliminary investigation or enquiry
2. Framing charges and issue of Charge sheet to the employee
3. Appointment of Enquiry officer and presenting officer
4. Conduct of Enquiry
5. Provisional decision as to the penalty to be imposed, issue of Show-cause notice.
6. Considering the reply of the employee and final decision, Awarding of
Punishment in final order.
7. Appeal
8. Memorial
8) How many chapters and schedules are there in LIC (staff) Regulations 1960? ) What are they?
A) SEVEN CHAPTERS and SIX SCHEDULES.
Chapter I PRELIMINARY (short title, application, definitions & power to implement) (Regulations 1 to 4)
Chapter II APPOINTMENTS, PROBATION AND TERMINATION OF SERVICE

41
(Regulations 5 to 19)
Chapter III CONDUCT, DISCIPLINE AND APPEALS
(Regulations 20 to 50)
Chapter IV PAY AND ALLOWANCES
(Regulations 51 to 59A)
Chapter V HOLIDAYS AND LEAVE (Regulations 60 to 74)
(Reg.62 CL&ACL, 63.PL 64.SL, 65.EOL, 66.ML, 67.SPL.L 68.QL, 71.J.TIME)
Chapter VI FOREIGN SERVICE (Regulation 75)
Chapter VII MISCELLANEOUS (Regulations 76 to 87)
(Reg.76.PF, 77.GRATUITY, 80.TRANSFERS)
09) What is the "Active Service"?
A) "Active Service" means the period spent on duty including the period of casual leave and quarantine
leave but excluding the period of any other kind of leave such as PL, SL, ML, EOL.
Active service is to be taken for calculation for release of Stagnation Increment.
10) What are the labor laws and the regulations applicable to the Corporation?
A) The relevant labor laws and the regulations applicable to the Corporation are:
1. The Industrial Disputes Act,1947
2. The Payment of Wages Act,1936
3. The Indian Trade Unions Act,1926
4. The Workmen's Compensation Act,1923
5. The Shops and Establishments Acts of the States
6. The Life Insurance Corporation of India (staff) Regulations,1960.
In addition to these Laws, Voluntary arrangements such as the Code of Discipline in Industry, Workers'
Participation in Management, Joint Management Councils, and the tripartite resolutions of the Indian
Labor Conference which create non-statutory obligations, are also applicable.
11) What is the Regulation 30 and 61 (g)?
A) Regulation 30 deals with Un-Authorized Absence
12) Who can suspend an employee?
A) As per Regulation 36 (1) The appointing authority or any authority to which it is subordinate or any
other authority empowered in that behalf ( vide sch.iv) may place an employee under Suspension (a)
where a disciplinary proceedings against him is contemplated or is pending; or (b) where a case against
him in respect of any criminal offence is under investigation or trail.
13) Where you will be fixed if you are promoted?
A) If you opt for immediate fixation then find corresponding basic pay of the promotion cadre with the
present basic pay and add one promotional increment. If you opt for fixation after normal grade
increment in the present cadre add one increment to the present Basic pay then find corresponding
basic pay of the promotion cadre and add one promotional increment.

42
14) Who is a delinquent employee? Whether he can seek the assistance of another employee
during the enquiry proceedings?
A) Delinquent employee is an employee against whom the charges are framed and the disciplinary
proceedings are initiated. He may seek the assistance of another employee during the enquiry
proceedings against him (a) with the prior permission of the Disciplinary Authority and
(b) consent of the other employee to assist.
15) Who is an Appellate Authority?
A) Appellate Authority is an authority with whom appeals of delinquent employee against an Order
issued by Appointing/Disciplinary Authority
16) Who is the appointing Authority for Class III & IV posts?
A) Appointment of Class III & IV employees-Competent Authority is Divisional
Manager-in-Charge of the Division for appointment of all Class III & IV employees
17) What is the notice period required of an employee in case he intends to leave or discontinue
his service in the Corporation?
A). i) Three months in the case of an employee Class I cadre and ii) One month in the case of other
cadres. Note: An employee shall not be entitled to set off any leave earned against the period of such
notice.
18) What precautions are to be taken before an employee who resign from the service is
relieved?
A). Precautions to be taken before the relief, when an employee who resign from service, Salary for any
excess CL granted to him shall be recovered.
1. a sum equal to his salary for the period by which the notice period fall short.
2. Outstanding balances of advances - FA, TE Vehicle advances etc.,
3. That he hands over all the material including office records furniture etc., under his custody to a
person Authorized in this behalf.
19). Is an employee entitled to cash payment in lieu of un-utilized Privilege Leave when he retires
voluntarily?
A). Yes- for retirement under Reg.19 of Staff Regulations.
20). An employee resign from the service of the Corporation and request to set off leave earned
against the period notice. He also requests for cash payment in lieu of unutilised PL. Is he
entitled to the same?
Ans) An employee who resigns from the services of the Corporation cannot set off any leave against the
period of notice and cannot encash any of his unutilised PL ( Reg. 18(3) (2).
21). An employee is late in attendance three times in a month. What action is to be taken?
A). One day CL is forfeited for every three days late in a month. If no CL is at his credit, PL or EOL as
the Competent Authority deems fit may be debited. An employee who is habitually late in attendance is
also liable to such other penalties as the Competent Authority may deem fit to impose.
22) How many times late attendance by any employee can be condoned in a month by the
Competent Authority?

43
A). Late attendance may be condoned upto two days in a month. In those days such late attendance will
not be taken into consideration for debiting the CL account.
23) When an employee be placed under suspension?
A). An employee can be placed under suspension
1. Where disciplinary proceedings are contemplated or pending
2. Where a case against employee in respect of any criminal offence is under
investigation or trial.
3. Where an employee is kept in police custody for more than 48 hours.
24). What is subsistence allowance?
a). Subsistence allowance- The allowance paid to an employee during the suspension.
First 90 days - 50% of the salary
Beyond 90 days - 75% of the Salary
If delay due to employee - One fourth salary.
Compulsory deductions -IT, Professional Tax, Licence Fee
25) What is Dies-Non?
A). Dies-non: When an employee remains absent un-authorized and the Competent Authority does not
find it possible to grant him any kind of leave including EOL, such absence shall be treated as the period
not spent on duty, i.e. Dies-Non. The employee shall be liable for disciplinary action for such
unauthorized absence. Dies-Non will not count for service or any
purpose including NGI.
26) What is the time limit for making an appeal against an order imposing any of the penalties
specified under Regulation 39?
A).within a period of 3 months from the date on which the appellant received a copy of the order
appealed against. (Reg 41)
27) When an appellant can submit a memorial?
A).An appellant can submit a memorial
1) When his appeal has been rejected by the Appellant Authority (subordinate to the Chairman) or
2. In whose case can appellant Authority has enhanced the penalty either on appeal (Reg.40) or on
review (under Reg.48) within a period of 6 months from the date of the appellant received a copy of the
order of such appellate authority (Reg.49).

28) Does EOL count for increments?

A). EOL is excluded for the purpose of increment (Reg.56 (1))
29) Can EOL on medical grounds be allowed to count for increment?
A). EOL on self-sickness grounds may be condoned by Competent Authority for the purpose of granting
increments (Reg.69 (4).
30) What are the various types of leave available to an employee of the Corporation?

44
A). Types of Leaves (Reg. 60 B). Casual Leave, PL, SL, EOL, ML, Sp.Leave, Quarantine Leave,
Paternity Leave
31) An employee submits an application for PL and absents himself from his duties from the next
day assuming that the leave applied for would automatically be sanctioned? Comment.
A). Leave cannot be claimed as matter of right. Sanction of leave may not be presumed and leave asked
for should not be availed of unless it has been specifically sanctioned - Reg.61(b).
32) An employee went on CL for 2 days. He suddenly fell sick and applied for sick leave in
continuation he has no PL to his credit. How do you deal with the case?
A). CL for 2 days - suddenly fell sick and applied for SL in continuation - he has no PL – Since the first
two days are availed are not on sick grounds, sick leave cannot be granted. As there is no PL to his
credit it should be treated as EOL.
33) An employee overstayed the sanctioned 3 days CL by 5 days. He has no other type of leave to
his credit. If it is decided to grant EOL for how many days EOL is to be granted?
A). 3 days CL sanctioned- overstayed by 5 days - no other leave to his credit. EOL to be granted for 8
days. CL cannot be combined any other type of leave except Sp.Leave and Quarantine Leave.

34) What is the additional Casual Leave?

A). Additional Casual Leave may be granted for the no. of days by which the holidays declared under NI
Act in a calendar year fall short by 23 1/2 days. Such leave may be availed of during the period of 6
months from 1st January of the following calendar year.
35) Can CL be availed of in conjunction with additional Casual Leave?
A). CL can be availed in conjunction with additional casual leave during the period 1st January to 30the
June.
36)How do you calculate PL?
A). PL is earned at one eleventh part of duty (excluding all leave other than CL and Quarantine Leave) -
PL can be accumulated upto 270 days. At any point of time, 120 days sanctioned.
37) What is Maternity Leave?
A). Maternity Leave is granted to a female employee to cover the period of confinement for childbirth.
Maximum 6 months from the date of commencement. Such leave shall not exceed 12 months during the
entire period of an employee's service. For miscarriage and abortions only 6 weeks ML.
38) How many days of special leave are allowed for undergoing sterilization operation?
A). Special leave for undergoing sterilization operation 6 days -for vasectomy or
salpingectory, 14 days for non puerperal sterilization- female employees, 1 day for IUDC insertion.
39) Why Quarantine leave is to be granted?
A). QL is a leave of absence from duty necessitated by order not to attend Office in consequence of the
presence of infectious diseases viz .Cholera, Diphtheria, Small Pox, Plague, Cerebrospinal Meningitis
and Typhus in household a Corporation employee. The employee is granted QL for a period not
exceeding 21 days and in exceptional circumstances 30 days.
40)How many days are allowed as Joining Time to an employee for Joining a new post on
promotion?

45
A). Joining time a) involve in change of Station (Reg.72)- Actual Time taken for the journey and six days
for preparation- Sundays does not count as a day for the purpose of calculation b) Not involving change
of residence from one station to another-1 day. A holiday counts as a day for this purpose. c) An
employee who is posted to a foreign country shall be allowed 15 days preparation time and the time
actually required for the journey.
41) What is Special Leave in lieu of Joining Time?
A). Special leave in lieu of Joining Time : Where the joining Time is curtailed, The
Competent Authority may grant Special Leave not exceeding the period of Joining Time curtailed, for
winding up his establishments or for any other connected purpose.

42) What is converted sick leave?

A). Un-availed casual leave or additional casual leave shall be converted into additional sick leave but up
to a maximum of 60 days or on half pay upto a maximum of 120 days, during the entire period of service.
It can be availed only after exhausting sick leave. (Reg.64).
43) What is the maximum special sick leave? Can it be sanctioned on half pay?
A). Max. Sp. Sick Leave available 180 days on half pay. It is granted if an employee is suffering from any
of the following diseases viz cancer, leprosy, TB, Paralysis, Brain Tumor, Cardiac ailments, Mental
Diseases, Kidney Diseases. Special Sick Leave on half pay per a period not exceeding 6 months if he
has no sick leave admissible to him (Reg.64).
44) What is Extra Ordinary Leave?
A). Extra Ordinary Leave Reg.65:- EOL may granted to an employee when no leave is due to him. A
Competent Authority may convert retrospectively periods of absence without leave into EOL- shall not
exceed 3 months on any one occasion and 12 months during the entire period of service.
45) Who is the Promoting Authority for the posts in Class III &IV employees?
A). Divisional Manager-in-Charge

46) Who is the Disciplinary Authority for Class III & IV employees?
A). Divisional Manager-in-charge of the Division.

47) What is the rate at which PF is deducted?

A). PF is deducted at rate of 10% of Basic pay + entire Sp.allowance, Tech. allowance, Graduation
Allowance and basic part of FPA also counts for PF.
Rate of Interest 8.65%
48) Does Sp. allowance counts of PF & HRA?
A). Yes.
49) How much special allowance counts for PF, HRA Gratuity and for refixation on promotion in
the cadre of Cashier?
A). Entire Sp. Allowance counts for PF,HRA, Gratuity and for refixation of pay on
promotion.

46
50) How gratuity for Class III & VI employees is calculated? what is the maximum Gratuity
payable under the payment of Gratuity Act,1972?
A). Gratuity admissible to an employee in Class III & IV shall be at the rate of one month's terminal basic
pay including the portion of special allowance for each completed year of continuous service in respect
of first 15 years & at the rate of half-a-month's terminal basic pay including the portion of special
allowance for each completed year of further continues service that the total gratuity admissible shall not
exceed 20 month's terminal basic pay including the portion of spl. allowance (Period spent on EOL
exceeding 12 months during the entire period of service shall be excluded). Where an employee is in
Class III&IV Gratuity admissible in his case shall be determined in accordance with the provisions of
gratuity act 1972, which is favorable to him, Max. Rs.20,00,000/-(Reg.19).

51) What is the age relaxation given to Ex-servicemen?

A). Age relaxation given to Ex-servicemen - to the extend of the period of service in armed forces plus an
additional period of 3 years subject to the maximum of 45 years age at entry.
53) When can an annual increment be granted?
A). Increment shall be granted to an employee on the first of the month following that in which the
Employee completes 12 months service 1. From the date of appointment or 2. From the date on which
his last annual increment released or 3. the date of his promotion as the case may be - 12 months
means 365 or 366 days where month of February in a leap year is involved.

52) What is Staff Regulation that deals with unthorised absence?

A)Staff Regulation –Reg. 61(g) 30 deals with the unauthorized absence.

53)What is Stagnation increment?

A). After an employee reaching the maximum in the scale of pay applicable to the post, he may be
granted an additional increment for every two or three completed years of service subject to the work
record being satisfactory. Such Increment given is called Stagnation Increment.

54) How much daily allowance is payable to Class III & IV Employees while on Official Tour?
City -> METRO A B C
Superintendents / HGA 700 700 600 450
Other class III employees 600 600 520 340
Class IV employees 500 500 400 250

55) How much daily allowance is payable to Class I & II Employees while on Official Tour?
City -> METRO A B C
(A) MD, ED, ZM, 1800 1300 1100 950
(B) DZM, SDM & DM 1500 1300 1100 950

47
(C) ADM, SBM, AO, BM, AAO & ABM 1300 1100 950 800
CLASS-II 700 700 600 450
56)At what rate the incidentals and allowance are Payable to an Employee/Official on tours?
A) Incidentals allowed are actual expenses subject to a maximum of Half-Pay’ DA for each completed
Journey. All the journeys performed in a calendar day are treated as a single journey for this purpose.
57). What is the time limit for shifting employee's family on transfer?
A). The time limit for shifting employee's family on transfer is 6 months from the date of his handing over
charge at his old station or the family may proceed to his new headquarters any time after the order of
transfer has been issued.
58)What are the mode of travels that allowed to Class II,III &IV Employees for Official Tour.
A) Class II&III Employees whose basic pay is less than Rs.22875/- are eligible to travel in 2nd class
sleeper. If they travel for a minimum of 4 1/2 hours during night (between 8-00 p.m to 6.00 a.m) are
entitled to I class or II A/C. sleeper.
Class IV Employees - II class sleeper if Night journey involved.

59) What are the Festivals that are approved for FESTIVAL ADVANCE.
A) PONGAL H) ONAM
B) UGADI I) ESTER
C) VINAYAKA CHATURTHI J) BAKRI IDD
D) KRISHNA JANMASTAMI K) RAMJAN IDD
E) DASERA L) CRISTMAS
F) DEEPAVALI M) JAMSHEDJI NAVROZ
G) DR BABASAHEB JAYANTI N) PATETI

CLASS-1 one month salary or 30000/- whichever is less

CLASS-II,III & IV- one month salary or 26000/- whichever is less
Part-timer - one month salary or 13000/- whichever is less

60) What is Free Insurance and how much is paid to Class III&IV employees?
A). Free Insurance to Class III & IV employees (Taxable)
Class III - Rs. 3750/- Class IV - Rs.3000/-
If Death Occurs for Class III Rs.12,000/- for Class IV Rs.6,000/-
61) What is the maximum period of PL for which encashment is allowed in the case of an
employee retiring at 60 years?
A). Encashment of leave in the case of an employee retiring at 60 years - PL to the credit of employee
on the date of retirement subject to the maximum of 240 days.
62) How much is paid as cash medical benefit for class III & IV employees?
A). Rs. 6650/- is payable along with the salary of January.

48
63) How much is paid as cash medical benefit for class I & II employees?
1.The class I Officers drawing Basic pay up to Rs.60430/- Rs.13300/-is payable with the salary of July.
2.The class I Officers drawing Basic pay beyond Rs.60430/- Rs.19940/- is payable with the salary of
July.
3.Class II : 8310/- is payable with the salary of July.
64) What are the limits of Reimbursement to Class-1 Officers for the purchase of brief
case/leather bags?
Officers in the cadre of AAO Rs.3000/-
Officers in the cadre of A.O-4000/-.& A.D.M. Rs.4500/-
Officers in the cadre of D.M-6000/-.& S.D.M. Rs.7000/-
No fresh reimbursement shall be permitted on promotion/change of group unless a full term of 3 years
has lapsed since the date of last purchase for which he has claimed Reimbursement.
65) What is Staff Regulation that prohibits an employee from seeking outside employment
without permission?
A). Regulation 28.
66) What are the categories eligible for Graduation Increments?
A). Assistant, Typist, MPO, Steno.
67) What are the various advances granted to Class III & Class IV employees?
A). 1. Festival Advance 2. Cycle Advance 3. Vehicle Advance 4. Computer Advance 5.Flood / drought
Advance 6. Education Advance
68)What are the Terminal Benefits payable to Class I & II on cessation of service on retirement?
1) Gratuity,2) Additional Gratuity,3) G.S.L.I,4) Privilege leave Encashment,5) Provident Fund & 6)
Pension.
69)What are the Terminal Benefits payable to Class III & IV Employees ?
1)Gratuity, 2)Free Insurance,3)PL Encashment,4)G.S.L.I.,5) PF & 6) Pension

70) How daily allowance is calculated for Official Tour?8

(A) 1) Any period in addition to 24 hrs. will counted as an additional day, for the purpose of D.A. 2)for
tours up to 4 hrs. period should be ignored for D.A. 3)For the period above 4 hrs. and less than 8 hrs.
half a days D.A. allowed. 4)For period of 8 hrs. and more, full day D.A. is allowed.5) D.A. for travel period
is to be paid at the rate applicable to the place of tour.6) where lodging and boarding expenses are
reimbursed or free boarding and lodging are provided at the place of the halt/tour,1/4th of the DA is
admissible. 7) Where lodging expenses are reimbursed or free lodging is provided at the place of
halt/tour,3/4th of DA is admissible. 8) Where boarding expenses are reimbursed or free boarding is
provided at the place of halt/tour half of DA is admissible. 9) where an employee takes Tea/Coffee and
standard breakfast while staying in a hotel the same may also be reimbursed in addition to 75% of DA
subject to deduction of Rs.10/-
71) Are (Staff) Regulations applicable to Dev. officers and Agents?
A). They are applicable to Dev. Officers only.

49
72) Is option for fixation of pay on promotion allowed to an employee who has reached maximum
of his pre-promotional scale?
A). Yes, Allowed.
73) What are the principles of Natural Justice?
A). No order imposing on an employee any penalty shall be passed whether by the Disciplinary Authority
without the charges being communicated to him in writing and without have been given a reasonable
opportunity to defend himself against such charges and of showing cause against the action proposed to
be taken against him.
74) Sign boards should be displayed in which order ?
A). Sign Boards which are for public display should be in trilingual and in the order of the languages [viz.,
Regional language (Konkani), National language (Hindi) and English].
75) Explain the validity of Promotion/ Departmental Test?
A). Validity of passing promotion test/ departmental-test/aptitude test -- Promotion test in respect of 1(b)
and 10(b) to be passed every year. Departmental test in respect of HGA(Admn.) etc., there is no
lapsation. Aptitude test in respect of HGA (Prog.)/AAO (Prog.) validity is 3 years.
76) What is the minimum of service require to get IEHS Loan and What is the Rate of Interest?
A).To avail IEHS loan facility an employee should put in a minimum 3 years of service. The amount of
Loan eligible would be as under:

Cadre Cadre Loan Extended Cadre Total

5% Loan 8.5%
1.Sweeper/Peons/Drivers 1325000 1675000 3000000
2.Record Clerk 1725000 2075000 3800000
3.Assistant,Stenos/Section 2075000 2425000 4500000
Heads/Supdts/HGAs
4.Development Officers 2125000 2875000 5000000
5.AAOs/Aos 2800000 3200000 6000000
6.ADMs 2875000 3425000 6300000
7.DMs/SDMs 3300000 3700000 7000000

77) Upto What extent an employee can contribute to APF?

A)An employee can contribute Additional Provident Fund (APF) to the extent of 90% of his basic pay.
78) Are AAO/AOs eligible for 4 wheeler advance?
A).The facility of purchase of 4 wheelers is extended to AAO/AOs the full amount of purchase prize can
be granted as advance with interest up to 1 lakh 5%. Above 1 lakh 9%.
79) In how many disciplines does LIC conduct its Sports activity?
A). LIC conduct sports in the following disciplines:
i. Chess ii. Caroms iii. Table Tennis iv. Badminton v. Athletics vi. Volley Ball.
80).What is the entry fee for participating in the LIC Official Tournament?
A)Rs.20/- per event

H .R. A . - 10% of Basic Pay, Special Allowance which counts for HRA P.F,

50
Officers/Employees allotted staff Quarters are not eligible for H.R.A. but they pay License fee @
2.5% of the Basic Pay at the minimum of the Pay scale.
TRANSPORT ALLOWANCE (On Confirmation)
Class-I:Rs.1330/- p.m. to those who do not draw conveyance Allowance under any scheme of the
Corporation.
Class –III & IV: Rs. 460/-p.m.
Con. Allowance to Physically Handicapped Employees- 2.5% of Basic Pay Maximum Rs.400/-.
Cashier Allowance: Rs.2,500/-pm.MPOs Rs.285/-pm
Functional Allowance
Prog.I Rs.1130/-pm
Prog.II Rs.900/-pm

Special Allowance for passing:

1.Licentiate-Rs.340/- pm, Associate ship- Rs. 925/- pm, Fellowship-Rs.1585/-.
Functional Allowance-Banda, Duplicator, Xerox RC Rs.150 p.m.
8.Washing Allowance: Rs.250/- No washing allowance for leave or absent for hole of the calendar
month.
Provident Fund:
Employees Contribution : 10% of pay
Corporation Contribution : Matching Contribution (10% of pay)
In Case if Employee opted for Pension: Corporation’s Contribution shall be made to pension fund
SPECIAL SPORTS ALLOWANCE
a) Divisional level : Rs.400/- per day
b) Inter division or Zonal selection trials : Rs.600/- per day
c) All India tournament : Rs. 800/- per day
d) Representing LIC All India teams in outside tournaments/meets: Rs.1000/-per day
Note: It is payable at uniform rates to all classes of employees and that no distinction should be made
between ‘A’, ‘B’ and ‘C’ class of cities.
LEAVE TRAVEL CONCESSION
1.Eligibility:Employee’s Wife/husband, parents, children and Legitimate & legally adopted children.
2.Eligible Distance: Eligible Distance means actual Distance traveled or 4500 kms.(each way)
Whichever less.
3.Frequency of entitlement:
Once in every two years. The current Block being
01.04.2018 to 31.03.2020 for Class III & IV Employees and from
01.01.2018 to 31.12.2020 for Class II Officers and I.
5.Leave:

51
LTC can be performed during any sanctioned leave including CL but other than Special leave or
Quarantine leave without any restriction as to minimum number of days. LTC will not be admissible to an
employee: 1) who proceeds on leave and then resigns his post without returning to duty. 2) who avail on
Sunday/ Holiday without availing of leave.
LTC may be allowed to an Employee: Who is on sick leave provided the leave is sanctioned and
certificate from the attending Doctor for undertaking the visit to out side places is submitted satisfactory
to the Competent Authority.
Who performs journey during EOL provided the Competent Authority duly sanctioned it. During leave
preparatory to retirement or on terminal leave, the return journey must be completed before the
retirement date.
6.Advance: 80% of the estimated amount is allowed as advance. May be paid 16 days prior to the
commencement of the onward journey.
On production of ticket / money receipts 80% of fare may be advanced even earlier than 16 days.
7.Incidentals: No incidentals are allowed for LTC.
8.Journey by Car:
Officers belonging to Class I & II shall be entitled to travel by car while on LTC.
Reimbursement under the LTC would be admissible only when the journey is performed by an
Officer/members of his family in a car owned by the Officer concerned or allotted to him under any of the
schemes of the Corporation.
9.LTC restricted to journeys within INDIA.
10.Application for advance should be submitted in form ‘B’; Reimbursement claim shall be submitted
in form ‘D’.
11.Return journey time limit: The return journey of the employee or each member of his family shall be
completed with in Six months from the date of commencement of the onward journey.
12.The reservation and service charges shall be limited to one for Onward journey and one for return
journey.
13.Claim should be submitted within 15 days from the date of resuming duties.
14.Travel by Taxi:
In case of travel by Taxi reimbursement shall be limited to the eligibility by the appropriate class of rail
fare for the actual distance traveled. If the journey is performed by an approved agency, the trip sheet
showing station-to-station
mileage, number and names of persons traveled, Departure/Arrival Time at all stations, Registration
number of the vehicle used and stamped Receipt. If the same is by unapproved agency, in addition to
the above, Ownership Certificate and Photo copy of RC Book are also to be submitted.

52
15.Officers in the rank of DM and above who are entitled to travel by air while on tour may also travel by
air while availing LTC.
Flood Advance: Maximum 50000/- or 3 months basic pay, whichever is less. Recovery: in 36
installments.
CYCLE ADVANCE
1.The Corporation grants Cycle advance to its employees belonging to Cl.III & IV.
2. It can be granted to an employee three times during his service, for purchase
of a new cycle and not for the purchase of a second hand cycle.
3. The advance shall not exceed the price of the cycle or Rs. 1600/- whichever is
less.
4. The advance is free of interest and shall be recovered in not more than 15
equal monthly installments.
Vehicle Loan to Class III & IV Employees:
Eligibility: Confirmed Employee with a min. of 5 years service (including probation.) In case of Ex-
Service man, the eligibility condition is 3 years.
Quantum of Advance: Quantum of advance is increased to full purchase prize.
Rate of interest: 5% pa Simple interest. 9% per annum interest is charged for advance over and above
Rs 50,000/- w.e.f. 01.09.2016.(Max.1.25 Lakh) Repayment: 60 monthly installments.
Advance may be granted once in seven years maximum three times in the entire service.
Computer Loan to the Employees:
Eligibility: Confirmed Employee with a min. of 5 years service.
Quantum of Advance: 80% of Basic cost of COMPUTER or Rs.75,000/- whichever is less.
Rate of interest: 9% pa (Simple) on the advance granted. w.e.f. 11.03.2013.
Repayment: 48 monthly installments.
REIMBURSEMENT OF ENTERTAINMENT EXPENSES
The Monetary limits for reimbursement of expenses incurred for serving Tea/Coffee to visitors on Official
business by Officers are as under :
AO/AAO - Rs.800/- PM
ADM / DM -Rs.1,000/-PM
DZM - Rs.1,200/-PM
Class IV-Benefits
7.Uniforms to Class IV-5 sets in 2 years (3+2)
Rs.910/- per set including stitching charges.-Driver,peon
Rs.925/- for watch-man and R.P.T.s-3 sets in 2 years (2+1).
Rs.705/- for white Saree , blouse,fall and bidding charges.
Rs.685/- for female Sweepers

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9 . Shoes/chappals to Confirmed employees/RPTs:
one pair once in two years not exceeding Rs.650/-.
For RPTs- chap pals – Rs.500/-
10.Socks-2 pairs every year not exceeding Rs. 55/- per pair.
11.Umbrella: Once in two years. Cost not exceeding Rs. 150/-
12.Special Allowance: Head peons, Liftman & Watchmen- Rs. 305/-pm.
INCOME TAX
INCOME SLAB RATES SURCHARGE
UPTO 2,50,000 NIL
2,50,000 to 5,00,000/- 5%
5,00,001 to 10,00,000/- 20%
Above 10,00,000/- 30%
Health and education cess 4% of tax payable.
Reimbursement of cost of Daily/Magazine
1) All Class-I Officers will be entitled for reimbursement of full cost of daily/magazine.
2) Officers of the rank of Divisional Manager and Assistant Divisional Manager will be entitled for two
dailies of repute –one financial and one non-financial.
3) Officers of the rank of Administrative Officer and Assistant Administrative Officer as well as class-III
will be entitled for one daily of repute – either financial or non financial.
MEAL COUPONS TO THE EMPLOYEES (01.09.2020)
Cadre Amount of Coupon Cadre Amount of
per day Coupon per day
ZM(O) & (S) 405 Dev.Officer 195
SDM 355 HGA 185
DM 310 Assistant/Stenos 170
ADM 275 Record Clerk 145
AO 240 Class IV 135
AAO 220 RPT 80

* Furnishing of Residence of Class-1 Officers.

Cadre-wise entitlement, exclusive of all taxes, will be as under :-
Cadre Entitlement every Five Years (Rs.)
ZM(S) 250000
ZM(O) 187500
DZM 137500
DM/ADM 112500

54
 AO/AAO 87500
 The following will be the Sanctioning Authorities for purchase of furniture/
fixtures under the modified Scheme.
1 Executive Director (E&OS) All Officers working in Central Office.
2 Zonal Manager-in-charge All Officers working in the respective Zonal Offices.
3 Director, MDC All Officers working in MDC
4 Director, ZTC All Officers working in ZTC
5 Sr./DM-in-charge of All Heads of BOs/SOs of the Division and Officers
Divisions working in the respective Divisional Offices.
6 Principal, STC Officers working in STC
7 Chief/Sr./BM-in-charge All Officers working in the respective BO/SO/MOs
 Articles of moveable furniture/fixtures may include :-
Air Conditioner with Stabilizer Heat Converter Bed Mattresses
Almirahs Inverter with Batteries and Trolley Beds and Bed-side Table
Air purifier Microwave Oven Dressing Table
Clothes Dryer Machine/ Stand Oil Filled Heater Folding Cot/Cot
Computer Table and Chair Oven Toaster Griller (OTG) Book Case
Desert Cooler Refrigerator Carpet
Dish Washer Television/Home Theatre/speakers Dining Table and Chairs
Fan Vacuum Cleaner Crockery/Utensil Stand
Food Processor Washing Machine Easy Chairs
Gas Stove/Burners/ Induction/ Water Purifier/RO Sofa Set with Centre
Cooking Range Table
Generator Wardrobe Study Table and Chair
Geyser Telephone Table

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 PS DEPARTMENT
--------------------------
1.Contents of Policy Bond:
Policy Bond is an evidence of the contract entered into by LIC and the Policyholder. There are 5 sections
to the Policy Bond.
1.PREAMBLE OR RECITAL: It sets forth the particulars of contract. It says the receipt of proposal
,declaration, Medical Report, are the basis of the Contract. It acknowledges the receipt of first Premium.
2.OPERATIVE CLAUSE: It is a Statement of Contract describing mutual obligations, to pay the Sum
Assured on the happening of an event at a specified place after death of the Life Assured being found
correct and after title or right is established on behalf of LIC. Payment of Premia as and when it is due is
a consideration on the part of Policy holder.
3.PROVISO: this is because the restrictive conditions and privileges are being printed overleaf and the
signature of the Authorized Officer of LIC is on the front page.
4.Schedule:It is the table of particulars such as Policy number, Date of Commencement, Date of
Maturity , age, Premia, Plan & Term , Mode , Accident Benefit, Name and address, Nominee etc.
5.Attestation: This is at the end of the Policy . This is the signature of the Officer testifying the contract.
Advantages of Schedule type of Policy:
1.Speedy preparation 2.Cost of printing and preparation is reduced
3.Simplification of Office Records 4.Simple to read. 5.Less complicated
6.Office space is saved.
What are the Privileges that are usually granted under a Policy?
On a strict interpretation of the Policy contract , premiums are payable on the due date. Any failure in this
regard on the part of the policy holder ,will involve complete forfeiture of the assurance. In practice,
however, the following privileges are granted by the insurer.
1.DAYS OF GRACE : One month but not less than 30 days of grace are allowed to pay the premium(15
days for Monthly mode).No late fee is to be paid during this period. Life insurance protection continues.
2.REVIVAL OF LAPSED POLICIES :If the premiums not paid within days of grace the Policy will lapse.
To bring a Lapsed policy into force is known as Revival. Lapsed policies may be revived under (i)
Ordinary Revival Scheme(ii) Special revival Scheme (iii) Instalment Revival Scheme (iv) Loan-cum
Revival Scheme and (v) S.B. cum Revival Scheme.
3.NON-FORFEITURE REGULATIONS: some insurers give insurance protection even after the policy
holder stops payment of premiums. This is done by advancing premiums from surrender value . This
ensures non-forfeiture of Insurance protection. LIC offers automatic paid up benefits under its non-
forfeiture regulations. If after at least three years premiums are paid , subsequent
premiums are not received the policy automatically become a full paid up assurance for a proportionately
reduced sum Assured. Under claim concession clause , even after a policy has become a paid up

56
assurance, if death claim arises within six months of the first un paid premium, the Policy is treated as
in force and The full Sum Assured is paid deducting unpaid premiums.
Surrender value: After three years premiums have been paid the policy acquires surrender value. The
guaranteed Surrender value, as stated in the policy ,is 30% of all the premiums paid excluding the first
years premium and all extra premiums and additional premiums if any. In practice more liberal (Special
Surrender value) surrender value is paid.
Loans: Loans are granted on the security of the policy equals to the 90% of the paid up value. For
reduced paid up policies 85% of the paid up value is available as loan.
what is LIFE FUND ?
The accumulated value of all the premiums received under a policy plus interest thereon less the cost of
meeting the risk already covered and expenses incurred is Technically called the Reserve for the Policy.
The Life Fund is the sum of the Reserve held on all the policies on the books of an insurer
1. Upto what age accident benefit cover will be granted?
ans. Accident benefit cover will be allowed upto the age of 70 years.
2. State the maximum limit of AB cover?
ans. AB cover is limited to Rs.50,00,000/- only under all policies together.
3. State the increase in minimum installment premium?
ans. Monthly & SSS Rs.75/-; Qly Rs.400/-; Hly Rs.600/-, Yly Rs.1200/-
4. State the rates of interest on premium and policy loans?
ans. Premium interest rate is 9.5% and loan interest is 10% per annum payable half yearly. For
guaranteed additions policies it is 9%.
6 When premium notices are sent?
ans. The premium notices are sent in the last week of previous month or even earlier.
7. When the premium default notice is sent?
ans. At the end of three months from the due date of unpaid premium the default notice will be sent to
the policyholder.
8. When the final lapse notice is sent?
ans. At the end of six months from the due month of first unpaid premium.(In the seventh month from
F.U.P.)
9. When the policy lapses?
ans. If the premium under a policy is not paid within the days of grace, the policy lapses.
10. When the minimum interest is charged & what is the minimum interest?
ans. If the premium is paid within 14 days after the expiry of the days of grace, premium is to be
accepted with minimum interest. Minimum interest is 0.50 for policies issued prior to 15.9.72,
Re.1/- for policies issued upto 31.12.86, Rs.2/- for policies after 01.01.87 and Rs.5/- for Jeevan Dhara
policies.
11. When evidence of health is not required?
ans. If the premium is paid within 6 months of the FUP due date, no evidence of health is required.
Similarly, if a policy was in force for 5 years, if it is lapsed thereafter it can be revived within one year

57
from FUP without evidence of health, provided the Policy is eligible for extended claims concession as
per Policy conditions. For Anmol Jeevan Policies evidence of Health is not required upto 60 days only. (
Bima Kiran and Bima Sandesh plans and term assurance policies are not eligible for claim concession.
Under New Janaraksha plan and Jeevan Suraksha plan without life cover during term assurance period
of 3 years evidence of health is not required).
12. What is Revival?
ans. Bringing a lapsed policy into force is known as Revival.
13. What is meant by Ordinary revival?
ans. Reviving a policy by collecting all arrears of premiums with interest upto the date of revival with or
without evidence of health is known as "Ordinary Revival".
14. What is meant by Special Revival?
ans. Reviving the policy without payment of all the arrears of premiums, provided the policy has not
acquired any SV/Paid up value and lapse period is 6 months to 3 years and policy was not revived under
the same scheme earlier, is called as special revival.
15. State the Grace Period?
ans. One month but not less than 30 days from the next day of the due date of unpaid premium is
allowed as grace period for Qly, Hly, and yly, mode of payments. Whereas for Monthly mode, only 15
days will be allowed. For Anmol Jeevan Policies Grace Period is 15 days only.
16. What is meant by surrender?
ans. Surrender is a voluntary termination of the contract by the policyholder before the expiry of the term.
17. What is meant by surrender value?
ans. The present value of the policy on termination of the contract with the insurer is called surrender
value. It is always percentage on the paid up value of the policy.
18. What do you understand by Paid up value? How is it related to Surrender Value?
After 3 years premiums have been paid, a policy acquires paid-up value. If no further premiums are paid
under a policy, after it acquires paid up value, a certain reduced sum is payable on maturity or on earlier
death. This is the paid up value of the policy. The paid up value bears the same proportion to the sum
assured as the premiums already paid bear to the total premiums payable. (for some plans a different
method of calculation is adopted). The Surrender value of a policy is the amount a policyholder gets in
cancellation of the policy contract. The Insurance Act lays down that if premiums under a policy have
been paid for at least 3 consecutive years the policy shall acquire a guaranteed surrender value. The
Surrender value of any vested bonus should be added to the Surrender Value.
Surrender value may be considered as the discounted value of the paid up value, with due allowance for
interest and mortality.
GUARANTEED SURRENDER VALUE: The Insurance Act lays down that, if premiums are paid for at
least 3 consecutive years, the policy shall acquire a guaranteed surrender value. To this shall be added

58
the surrender value of any subsisting bonuses already attached to the policy. Every policy of life
insurance must show the surrender value payable under the policy. The guaranteed
surrender value of endowment policies is generally 30% of the premiums paid excluding the first year
premium and extra premiums or additional premiums, if any.
SPECIAL SURRENDER VALUE: LIC offers more liberal Surrender Values than Guranteed Surrender
Values. These liberal surrender values are known as special surrender values.
19. Can a surrendered policy be reinstated?
ans. Yes, within 6 months from the date of surrender of a policy, if a request is received from the
assured, the policy can be reinstated, subject to payment of Interest on surrender value paid, for a
minimum period of 6 months, evidence of good health and reinstatement charges except policies issued
on and after 1.1.2014 , Reinstatement not allowed.
20. What do you mean by nomination?
Ans. Nomination is a provision according to section 39 of insurance act, 1938. It is a right of the
policyholder to appoint a person to receive the policy money in the event of his early death before
maturity.
21. Who is a nominee?
ans. Nominee is a person/persons to whom the money secured by the policy shall be paid in the event of
his death.
22. Who can be nominee?
ans. Generally a near relative of the life assured can be a nominee.
23. What do you understand by foreclosure?
ans. Foreclosure means closure or writing off the lapsed policy on which loan exists before its actual
maturity to loan account (surrender of policy to Loan). In force policies can not be foreclosed and policies
due to maturity with in 1 year should not be foreclosed. Where policy loan interest is in arrears for 2 or
more Hly installments excluding broken period interest and the policy is in paid-up (Lapsed) condition,
then the Foreclosure action is to be initiated.
24. When a duplicate policy be issued?
ans. During the currency of the policy if the policy is irrecoverably lost or destroyed, a duplicate policy
can be issued to the person entitled on specific request of the Life Assured.
25. What is meant by Assignment?
ans. Assignment is a method by which a person can convey his interest in a property to another.
26. What is mode of execution of assignment?
ans. Assignment can be executed on the back of the policy and if for any reason it is not possible to do
so, the same can be executed on a separate non-judicial stamped paper of appropriate value.
27. What are the types of assignment?
ans. An assignment may be absolute or conditional.
28. What is meant by conditional assignment?

59
ans. Conditional assignment is one which provides that the policy will revert to the life assured in the
event of his surviving the date of maturity or on the prior death of the assignee.
29. What is meant by absolute assignment?
ans. Absolute assignment is one by which all rights, title and interest which the assignor has in the policy
passes to the assignee without reversion to the former or his estate in any event.
30. Is the policy monies are payable to several nominees in specified shares?
ans. Where are there are more nominees than one, payment of policy monies in specified shares is not
allowed. Payment is to be made to the surviving nominees on the death of life assured.
31. When more than one installment premiums are due, if the first premium is paid before the
expiry of the grace period of the next premium, will you accept and issue the receipt? If it is
tendered after the grace period what difference does it make? How do you proceed?
ans. Yes, it should be accepted and receipt should be issued. If it is tendered after the grace period the
authorized official can accept the same with interest at his discretion and issue receipt if he is satisfied
that the concession is not misused. Such receipts should be endorsed by a rubber stamp "this is issued
without prejudice. The policy continue to be in lapsed condition"
32. How do you control the first year lapse?
ans. First year lapse has to be controlled by immediate despatch of premium/default/lapse notice and to
be followed up for revival by explaining the loss of insurance cover to life assured and educating them
about the need to keep the policy in force.
33. When do you operate short remittance account and to what extent each transaction?
ans. SR a/c may be debited for short collection of premium of Re.1/- or 1% of premium whichever is less.
SR account may be credited upto Rs.10/-.
34. When do you take up the writing back action in the following cases?
(a) Outstanding deposits (b).Cheque cancelled a/c (c) Money orders returned back and (d) Unclaimed
surrender values (outstanding).
(a) After 2 years in the case of policy deposits and after one years in the case of Proposal Deposits. (b)
2 years (c) one year (d) After 3 years.
35. When can an advertisement in the newspaper be dispensed with for issue of duplicate policy
in lieu of lost policy?
ans. a. Loss of policy by theft if certified copies of FIR and Final Investigation Reports are produced.
b. If charred pieces of policy burnt are produced.
c. When policy is lost while in the custody of Govt. Office.
d. Mutilated and damaged policy bonds are produced.
e. Where SA does not exceed Rs.1,00,000/-
f. Where SB/MC is not due within 2 years.
36. I took a policy a year back under endowment plan for 15 years term with qly mode and
stopped paying premiums for 3rd quarter. Now, I want to take a fresh policy under money back
plan for 15 yrs. LIC refuses my proposal. Why?
ans. It is a policy decision of LIC not to entertain a fresh proposal if previous policy has lapsed during last
3 years.

60
37. Is there any revival scheme where in arrears of premia are not required to be paid?
ans. Yes, special revival scheme is there.
38. Can you say some thing about the requirement of medical fee in respect of revival of a lapsed
policy or I was told that I need not pay the medical fee if I take a new policy? can I get my lapsed
policies also revived under Medical scheme without medical fee?
ans. Medical fee will be reimbursed only when the revival is approved and effected for policies other than
under table 94 & 111 provided the policy has not lapsed in the first year, and only two times during the
policy term.
39. At what rate the late fee on the arrears of premium is charged at present?
Ans 9.5%
40. When does the Grace period start? When does it end? Can it be extended any more in any
case?
ans. Grace period starts from the next day of the due date of premium. It is one month but not less than
30 days for yly, hly, and qly modes and 15 days for mly mode. It can be extended to the following
working day if the last day of the period falls on a Sunday or a public holiday. For Anmol Jeevan Policies
Grace Period is 15 days only even for Yly, Half-yearly and Quarterly modes.
41. What is the difference between the SA and the sum to be revived?
ans. SA is the amount payable on maturity and on death before maturity, if the policies are in force. Sum
to be revived is the amount at a risk on the date of revival.
42. Whether a money back policy for 25 years term can be revived under loan cum revival?
ans. Yes, Now Loans can be granted under money back plans also.
43. I have paid premium for 4 years under my money back policy and stopped payment of
premium two years back. I was told that there is new scheme for revival of my policy without
paying much amount. What is the name of the scheme?
ans. S.B.cum Revival.
44. Does a policy acquire surrender value without acquiring paid up value? If so when?
ans. If premiums are paid for at least 3 years GSV is payable. ie., 30% of total premiums paid excluding
first year premium and extra premiums if any.
45. A trustee under a MWP Act wanted to surrender the policy for the benefit of the beneficiary.
Will you accept?
ans. Yes, when the beneficiaries are mentioned by name and only with their consent provided they are
major and competent to contract.
46. An assignee of a policy which was conditionally assigned desires to surrender the policy. Will
you allow the same? If so on what condition?
ans. Can be allowed with the consent of the LA and on receipt of valid discharge by both assignee and
assignor.
47. What are the factors on which surrender value depends?
ans. Paid up value ie., No. of premiums paid/Payable, SA, Bonus, and SV factor.
48. What is the relevant provision in the Insurance Act pertaining to surrender?
ans. Sub section 1 of Sec.113 of Insurance act 1938 ie., GSV
49. What is a policy foreclosure? What is the source of authority for the Corporation to do so?
ans. Foreclosure means closure or writing off the Policy before its maturity date.

61
Incase of Paid up policies when loan is sanctioned within surrender value , a time may come when the
loan and the loan interest together may exceed the surrender value .To avoid this situation the Insurer
take fore closure action.
An adjustment of SV available under a paid up policy towards loan and loan interest that has already
fallen due.
50. When an endorsement fee is charged for grant of loan? Why and what is the fee?
ans. When the loan is granted for polices prior to 01.06.69, an endorsement to the place setting terms
and conditions of loan. This endorsement is chargeable with stamp duty. Hence the fee is charged varies
from state to state. But it is a flat rate.
51. The nominee under a policy desires to raise a loan on the policy stating that LA wrote to him
to do so. What will you do?
ans. A nominee cannot raise loan on the policy.
52. What is the maximum loan value under a policy in terms of surrender value?
ans. 90% of Surrender value if the policy is in-force. 85% of the surrender value if the policy is in lapsed
condition..
53. Is there any differences in loan value factor between in force policy and paid up policy?
ans. 90% of SV – in force
85% of SV – paid up policies.
54. While taking a loan a policyholder is required to assign the policy to LIC why?
ans. For security of Loan.
55. Surrender of policy during its last year is called with some other name. What is it?
ans. Discounted claim.
56. What are the conditions pertaining to loan interest if the loanee desires to repay the loan
either in part or in full?
ans. Minimum 6 months interest has to be paid. If it exceeds Rs . 2000/- we may charge interest a) for a
minimum period of 2 months b) for actual term of loan or c) Rs .2000/- which ever is higher.
57. What is general principal followed by the Corporation in alterations?
ans. Alteration is allowed for in force policies after 1 year from the date of commencement.However, the
following alterations are allowed in the first year.(a) Corrections in the policy (b) Alteration in Name (c)
Alteration in Age (d) Conversion to SSS (e) Inclusion of AB & PWB.
58. What are the removable extras?
ans. Extra premium charge 1.Cataract 2. Hernia 3. Non vaccination 4. Piles 5. Pyorrhea 6. Loss of teeth
7.Occupation may be removed on production of satisfactory evidence.
59. What are Non forfeiture regulations in policy conditions?
ans. If three years premiums have been paid and subsequent premiums are not paid the policy shall be
wholly void, but it subsists as a paid up policy for reduced SA and payable on maturity or death before
the term provided such amount is not less than Rs.250/-.
60.What are the forfeiture Regulations?

62
Ans. As per the Section 45 of the Insurance Act the policy shall be void and all Benefits payable under
the policy will be forfeited in the following instances:
1.When premiums are not paid for a minimum period of 3 years.
2.A certain condition prescribed in contract is violated.
3.There is untrue Statement in proposal or personal statement or any other related document.
4.There is any suppression of material fact.
61. Why age has to be admitted in LIC policy?
ans. Age plays vital role in premium calculation. As the physical health of a person should be consistent
with his age. Terms and conditions of the policy are also depend upon the age of the proposer.
62. Why age proof is not necessary in pure endowment policies?
ans. SA is payable only on survival of the LA. There is no risk cover under the policy.
63. What are options available for conversion of a convertible whole life policy? When they are to
be exercised?
ans. Options are either to convert the policy into endowment without profit or with profit policy at the end
of 5 years from the date of commencement.
64. Is increase in SA permitted after the policy is issued? why?
ans. No. increase in SA means increase in risk that is not allowable.
65. Is a reduction in terms of assurance allowed after the policy is issued.
ans. Yes,
66. Is nomination is supported by any law?
ans. Yes, it is governed by the Sec.39 of Insurance Act 1938.
67. Who can effect a nomination?
ans. The holder of the Policy on his own life only can effect a nomination.
68. I wish to nominate my children to receive Rs.25,000/- each of my 1 lakh policy. Can I do so if
not please show me a way out?
ans. No.if specified share is required, the policy can be split into different policies. In such a way that the
SA should be minimum required under the plan of assurance.
69. I would like to change the nomination, which was previously in my father's name, to my wife?
Am I required to get the consent of my father?
ans. No.
70. Is nomination made in CDA policy at the inception of the policy valid? Why?
ans. Only LA can effect the nomination. Under CDA the proposer is taking the policy on child's life. If the
life assured dies, before the deferred date, return of Premium is payable to proposer provided the Policy
is in full force then.
71. Generally, assignment cancels the nomination. But in certain circumstances both assignment
and nomination co exists. what are those circumstances?
ans. When a LA takes a loan from LIC within the surrender value of the Policy.
72. How can nomination be changed?
ans. A Nomination can be changed by an endorsement on the policy itself or by a separate deed duly
pasted on the policy. The same should be followed by a notice of a nomination.
73. Can an agent, who introduces a policy, be the nominee under the policy?

63
ans. No, unless he is a close relative of LA.
74. Who is an appointee and when his consent is required?
Ans. An Appointee is a person to receive the policy monies in case of death of the Life Assured during
the minority of the nominee. His consent is necessary since he should agree to act as appointee.
75. Can a nominee claim the Survival Benefit under Money Back policy ? If so when?
Ans. No , Nominee is a person to give valid discharge to the corporation in the event of the death of the
Life Assured before maturity.
76. What will happen if the nomination is not registered in the books of the Corporation?
Ans. The Nomination will not be effectual unless it is communicated to and registered by the corporation.
77. When does the nomination gets cancelled?
Ans. An assignment automatically cancels nomination.
78. What does the Section 38 of Insurance Act,1938 deals with?
Ans. Assignment.
79. Can an assignee surrender a policy without the consent of the Life Assured ?
Ans. If it is absolute assignment an assignee can surrender a policy without the consent of the Life
Assured.
80. Has nominee got any right to commute the benefits under multi-purpose policy ?
Ans.No.
81.What is the difference between conditional assignment and an Absolute assignment?
Ans. In Conditional assignment the policy will revert to the Life Assured on his surviving maturity or death
of the assignee. In Absolute assignment, all rights, title and interest will pass on to the assignee will not
revert to LA in any event.
82. How can the rights under a policy of life Assurance which was once assigned, be regained?
Ans. Only on Re-Assignment.
83. Whether an assignment or reassignment made after the death of the life assured is valid or
not?
Ans. Not valid.
84. What is the difference between an assignment executed before 1.7.39 and afterwards?
Ans. Assignment prior to 1.7.1939 is governed by section 130 of Transfer of property Act. The priority of
the claim would be determined by the date of assignment or transfer and all assignments are absolute
only for Mohammaden policyholder. The assignment after 1.7.1939 is governed by section 38 of
Insurance Act, 1938. Priority of claim would be determined by the date on which the notice is received.
85. When a policy was assigned to an absolute assignee to whom the premium notices/receipts
are to be sent?
Ans. To absolute assignee only. If both the assignee and assignor makes a joint application to the effect,
the notices/ receipts may be sent to assignor.
86. Does the right in the policy moneys revert back to the life assured if the assignee
predeceased the life assured?
Ans.Yes, only in case of conditional assignment.
87. Whether a policy, which was already assigned to LIC for securing a loan, be further assigned
to any body? If so, what is to be done?

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Ans: Yes, but the interest of assignee will be subject to Corporation's prior lien on the policy.
88. When was the Final (Additional) Bonus first declared?
Ans: On 31.03.1979.
89. What about 31.3.1986 valuation and why there is difference?
Ans: It is a special valuation conducted in connection with the 30th anniversary of the Corporation, there
after yearly valuations are being conducted. With effect from 31.3.1986 valuation the bonus given to unit
policyholders is depending on bonus index group and getting less bonus was brought to the level of
bonus of corporation's policies. The unit polices getting higher polices are allowed to get higher bonus as
per previous practice.
90. What about 31.3.85 valuation and why there is difference?

Ans: Till 31.3.85 valuations were biennial and are effective from 1st January of next year. Till then interim
bonus only was given.
91. I have borrowed a loan from Bank against the surrender value of my policy, which was
assigned to them. Now the bankers wish to surrender the policy and square off the loan. Can
they do so? what they should do?
Ans:Yes. When a policy is assigned to bank the authorized officials should sign the discharge voucher
and send it back with policy bond they should give notice to the borrower to redeem his loan.
92. What are the loan interest rates ? From which date they are effective ?
Ans. (1)6% before 01.08.70 (2)7.5% from 01.08.70.(3) 9% from 01.08.74 (4) 10.5% w.e.f. 01.01.87. (5)
9% from 01.04.2005 (6)10% from 01.05.2012.

93. When loan interest gets compound. Where does this provision appear?
ans. Where two half yearly installments of interest are in arrears and not paid within the grace period of
second installment. Clause 3 of terms and conditions of loan provides this.
94. How interest is charged on revival of SSS policies, if the lapse period exceeds 12 months?
ans. Interest is charged as if all monthly installments of first 12 months fell due on 1st defaulting month &
thereafter all arrears fell due on 1st month of next 12 months or part thereof.
95. Revival is defined as "Novatio" what do you mean by that?
ans. Fresh contract.
96.What are the Tables excluded in the Special Revival Campaign?
Ans. As per last year Campaign, all Guaranteed Addition Policies were excluded. High risk Plans could
be considered but with full health requirements.
97. Is the 7th month Revival applicable to Jeevan Mitra Plan(T.No.88) ?
ans. No, 7th month Revival is not applicable to high risk plan.
98.what are all the alterations allowed within one year from the DOC of the policy .
Ans.1. Corrections, 2.Conversion into SSS, 3. Alteration in age,4. Granting of DAB,PWB. 5.
Supplimentory benefits under Multipurpose policies 6. Settlement options etc.
99. I want my policy term to be reduced from 20 years to 15 years. What is the
quotation/alteration fees?

65
Ans. Quotation fee of Rs.50/- is to be collected.
100. What do you mean by split up of policy ? Can we do this always ?
Ans. Where nominations in favour of different persons specifying shares are to be effected ,the same
can be done by splitting up of policies. Ordinarily it is not allowed.
101. During the lapse period, the policy records cannot be transferred. To this rule , there is
exception. What is that exception ?
Ans. SSS policies can be transferred if policy holder writes that he revive the policies in new place.
102. Even if the policy is in force, records cannot be transferred. To this rule ,there is exception.
What is that exception ?
Ans. In the last year of the policy.
103.What are the conditions for the special Revival scheme?
ans. The policy should not have acquired any surrender value. Application for revival should be received
after six months but within 3 years from the date of lapse. The date of commencement will be shifted to a
date prior to the date of revival by the period for which premiums were received under the original policy.
2. If the policy is stood lapsed for more than 2 years the policy will be so dated back that on revival the
new date of commencement does not fall beyond two years from the original date.
3. The plan and period of insurance will be the same as those under the original policy.
4. Premiums ceasing age or the maturity age should not exceed the maximum allowable under the
particular class of policies.
5. The revised premium would be calculated for the same term as that of the original policy but at the
rate applicable to the age at the date of commencement of the new policy.
6. The policy holder will be required to pay accumulated difference between the original and the new
premiums with interest at 7.5% per annum compounding half yearly, the minimum revival charge being
Rs.2/-.provided the policy conditions specify the rate of interest for Revival. In all other cases the rate of
interest will be 9% The policy holder will also be required to pay premiums on the new policy for a
minimum period of three months.
104. What are the conditions for Installment Revival Scheme.
Ans.1. The arrears of premium should be for more than one year.
2. The arrears off premium with interest are allowed to be paid by installments spread over for two years
or more along with normal premium installment.
3. At least a sum equal to six monthly premiums or two quarterly premiums or one Half Yearly premium
or one Half of the yearly premium should be paid immediately.
4. The balance amount can be paid by installments over the remaining premium
due dates in the policy year current on the date of revival and in two policy years thereafter.
5.The normal paid up and surrender values will be allowed only if the Policy holder pays up the
outstanding installments of Revival amount in one lump sum.
105. What is the Loan cum Revival Scheme ?

66
Ans.As the name itself indicates , it involves two functions viz, granting of loan and revival of the policy
simultaneously. The loan available under this policy , treating the premiums as paid upto date as on the
date of revival, even if the policy has not acquired any surrender value, is calculated and the amount
available as is utilised to adjust the arrears of premiums with interest. Incase any balance of amount is
required , the same is called for. In case where the available loan is more than the arears of premiums
with interest thereon the excess of loan is paid to the policy holder.
106. Is an assignment for a part of policy moneys valid ? Ans. No.
107.What is the difference between Guaranteed Surrender Value and Special Surrender Value ?
What is general principle followed by the Corporation while settling surrender transactions.
Ans. GSV is Guaranteed under a policy contract is equal to 30 % of the total amount of premiums for the
first year and all extra premiums paid excluding premiums for the first year and all extra premiums /or
additional premiums for accident benefit etc. that may have been paid .In addition cash value of any
existing vested bonus will also be allowed. Special surrender value is calculated depending upon various
actuarial calculations. Generally LIC of India allows
S.S.V.
108. What is meant by Successive Nomination ?
Ans. Where Nomination is made in favour of A, failing him to B, and failing him to C is called Successive
Nomination , Where policy monies is payable to the Successive Nominee in the order of preference only.
109. A policy is assigned in favour of LIC for loan. And another one assigned to Bank for Loan.
What is difference that may arise on assignment of both the polices?
ans. In case of policy assign to LIC nomination continues to be valid even after assignment. For policy
assign to Bank nomination automatically cancelled. After reassignment LA has to nominate once again.
110. Can a nomination be made in favour of a stranger? If so why? What do you mean by moral
hazard?
ans. Relationship to be mentioned. Purpose of insurance to be ascertained. Moral Hazard is involved.
Since there is a chance of killing the LA by stranger to get the policy money.
111. A policy is under pledge to LIC,The policy holder wants to effect a change of nomination and
wants LIC to send his bond for that purpose. I wish to send it immediately anybody got any
objection. If so what is your objection and why? What shall I do to satisfy him?
ans. A policy pledged to LIC cannot be parted with unless the loan is repaid. LA can call on office and
effect change of nomination on the policy bond.
112. A policy was received for registering nomination or change of nomination. The wording is
not as per the text supplied by the LIC can we register or reject? If cannot reject if so why?
ans. We can register it and make it clear that LIC is not responsible as its legality. If the wording are not
clear we may ask him to give it in correct proforma.
113.. A policy was issued without nomination as policyholder wants to do it on later date. Now he
wants to do it in favour of his concubine. I want to register, Do you have any objections? If so
Why?
ans. Yes, we can register the same.
114.When registration of nomination can be effected?

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ans. After receipt of form of nomination and notice of nomination duly completed and witnessed by an
English knowing person the same should be registered on the same day. 1.A Policy is in lapsed
condition for more than Five years, can it be revived? ans. No, now this is not possible policy lapsed
for more than 5 years can not be revived.

LATEST CHANGES :
Services which were free earlier and are free now also :
change of address
Transfer of policies
Revival of policies
Reduction in premium paying term
Mode change to higher frequency
Age correction
Any change in extra premiums
Services which were charged earlier and are charged now also:
Reduction in sum assured
Mode change to lower frequency
Grant of accident benefit or PWB desired after issue of the policy

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 CUSTOMER RELATIONSHIP MANAGEMENT

What is Customer Relationship Management? What is the role of IT in CRM?

Customer Relationship Management is an interactive process that turns customer information into
positive Customer Relationship.
C.R.M in relation to Information Technology is a Method of collecting and presenting relevant Customer
details that an Organization can best Manager to interface with a customer in a coherent way.
CRM helps the organization and its personnel to see the full picture of the Customer. The two parts of
the CRM Module are (a) Allotment of Customer Folio Number for the Customer having multiple policies
and (b) Allotment of Customer Request I.D. Number.
These two aspects will help the organization)
(a) reduce the cost of communication,
(b) To identify the High-end customer by consolidating the policies, Sum Assured and Premium
(c) To offer value added service to High-end Customer.
d) To make a targeted approach in the marketing area and to have a periodic review of each Customer
needs
e) To provide actual Mortality experience and actual number of customer to the actuarial Department
f) To keep tracking of requests, identifying the areas of Bottlenecks, measuring of time lags and helps
the management to redeploy or realign the process.
CRM will also helps the Customer to see the status of his request at any given point of time.
Targets :
1. Review and Improvement of Processes:
a) Reorganise the Branches through Single Window System.
b) Implementation of Request Tracking Module for generation of MIS/control over
Policyholders’ Communication.
c) A minimum of 50% of the new policies should be issued through Green Channel or improvement by
10% over last year’s ratio whichever is more.
d) ECS Method for payment of claims.
e) Alternate channels for premium payment –
i) Internet, Kiosks, ATM, ECS to be popularized on a large scale.
ii) 2000 additional collection points to be activated.
iii) Atleast 5% of total no. of collections to be through Alternate Channels.
iv) ECS to be extended to all Metros and other centres identified by Reserve Bank of India.
v) Post Office services, computerized printing of cheques, etc. to be adopted.
2. Data Purity and Management:
a) 100% completion of:
i) SSS address masters in all Divisions

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ii) Loan Purification
iii) IPP Master Purification
b) Effective usage of CRM Modules by:
i) Capturing of dates of birth in Policy Master through special drives
ii) Identification of customers for new business for various niche products
iii) Revival of lapsed policies on a continuous basis
iv) Identification of orphan policies, high end customers
v) Capturing of Mobile Telephone Numbers of customers for implementation of SMS messaging
solutions.
3. Customer Retention & Relationship Building:
a) Use of Customer ID for strengthening Customer Relationship and for business growth.
b) Standing Committee on customer relations to play an important role in reviewing and monitoring
various aspects of customer servicing
c) Grievance Redressal Machinery must be very responsive and all channels of communication are
functional and effective. All complaints to be attended on the same day. All Divisions must analyses
nature and cause of complaints. Steps may be initiated towards addressing the underlying issues which
lead to complaints
d) SSS servicing through special camps and frequent liaison with PAs
e) Customer Contact Programmes should be a meaningful and participative exercise
f) Special drive for adoption of orphaned policies by the Agents
g) Regular Customer Meets (at least 2 per year) must be held to get feedback in various servicing areas.
The format of the meet should be so designed as to :
i) Cover a wide spectrum of policyholders
ii) Provide latest information about LIC's products and services.
iii) Promote brand image
iv) Get feedback to assess customers' perceptions.
4. Keeping the customers informed:
a) Status Report to be sent to all policyholders as per IRDA Guidelines.
b) Popularise the name, address and the phone number of the contact persons, grievance redressal
officers for immediate access
c) Other contact details like numbers of Call Centre, toll-free telephone, web site address, etc may be
popularized
d) Enquiry counters to act as Information Facilitation Centres with adequate value additions.
5. Aligning human resources with the CRM strategies:
a) Training of Agents in technology enabled selling, data mining, providing competent services to
customers and building relationship

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b) Training of staff at various levels for quality consciousness, empathy and responsiveness c) Multi
skilling and re-skilling of staff through various intervention to be undertaken in consultation with the
respective Zonal and Divisional Training Centres.
6. Leveraging CRM for Marketing:
a) Systematic follow-up of leads generated through Call Centres, IVRS, etc.
b) Recycling of Claims proceeds into New Business (Target of 10% of claim payout to be achieved).

* QUESTION BANK* :

1. What are the alternatives to pay the premium?

A. Internet, ATM & ESC (Electronic Clearing Service).
2. Which Bank ATMs are authorized to collect the premium?
A. UTI and Corporation Bank.
3. Where LIC has opened recently to collect renewal cases?
A. ZTC, MDC and DO.
4. Expand CTS; Who can create complaints in CTS?
A. Complaint Tracking System. CO, ZO & DO can create complaints in CTS.
5. Who can close the complaint in CTS.
A. The Office which created complaint can close the complaint in CTS.
8. What is National IVRS Number.
A. 1251.
9.What is CRE & CRG?
A. Customer Relations Executive and Customer Relations Group formed at Branches.
10. What is CRM Module?
A. By Operating CRM Module we can identify the High-end Customers.
11. What are DOB errors? Why should we clear the DOB errors?
A. Date of Birth Errors. We should clear the DOB errors for effective utilization of CRM package.
12. Who is the Redressal Grievance Officer at BO, DO, ZO and CO.
A. Sr./Branch Manager, Marketing Manager, Regional Manager (Mktg.) and Chief (Mktg.) respectively.
13. What is our Web site address for lodging complaints?
A. www.licindia.com
14. What are different sources for complaints?
A. Web, Postal, E-mail, Phone and In-person.
15. What is CFN?
A. CRM Module will allot Customer Folio Number to each Customer.
16. What can a customer leave the Organization?
A. Customer leaves organization when the quality of the service is not good.
17. And when can an existing customer be retained?
A. When the quality of the service is good.

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 S.S.S.DEPARTMENT

1.What is Salary Savings Scheme?

Ans. The Salary Savings Scheme is a plan of Co-operation between Employer, Employees and the LIC.
Under the Scheme, the policy holder authorizes his employer to deduct Life Insurance Premiums from
his Salary every month and remit the same to LIC.
2.What are the conditions of introduction of SSS in an Institution?
Ans. Where the total number of employees is less than 100 the minimum should be 15 and where the
total no. are more than 100 the minimum for introduction is 25.
3.Who can be Insured under SSS?
All the confirmed Employees including Executives and Supervisors can take advantage of the scheme.
Temporary employees who have put in service of more than a year can also be insured under SSS.
4.How the SSS Masters are updated in the Front End System?
Under Front End error free Masters are created in NB Dept. The Masters pertaining to the issuing
Branch are added automatically in the third month. The policies which do not pertain to them are sent to
DO/DP for Clearing House Operation. In Divisional Office/DP they are all separated and sent to the
respective Branches for inclusion in the invoice from the third month.
The records are sent to Branches through MAN, after clearing house operation.
5.What are the Benefits to the Employee?
Ans. The scheme is of immense use to the Employees (policy holders) who are saved of the trouble of
paying premiums directly. They get Life Insurance cover on easy installment system. They get adjusted
to this method of saving and adjusts his living on the net income Life insurance Premium becomes the
first charge on his salary. The additional charge of 5% of premium, normally made for the ordinary
monthly mode is waived in Salary Savings Scheme.
6.What are the Benefits to the Employer?
Ans.The Scheme has its own advantages to the Employer. The Employer should not take it as an
unnecessary botheration. It is a staff amenity. Like all other staff amenities it makes for better employer-
Employee relations. Further ,if the Employee leaves the services and pays the premiums direct, the
additional charge of 5% will be restored. The Employees is thus loss likely to leave service for the
employer ,this means less labour turnover. P.A. is also eligible for service charges @ 1/8th of the
premiums received.
7.What are the Benefits of the LIC?
It is true that this means a little additional work for LIC. But salary deduction of premium means certainty
of receiving them. There is a lesser rate of lapsation. and greater conservation of business in force. From
this stand point ,Salary Scheme is advantageous to LIC too.
8.What is the rate of Service Charge payable to the PA?
Ans. The service charge is 1/8th % of the premiums received every month If received in floppy it is 1/6th
% . Other Conditions are

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a)Remittances to be received with in 7 days from salary disbursement.
b)The reconciliation statement should be sent along with the cheque.
c)The Demand Invoice should be returned.
d) A written request from PA claiming payment of service charges.
e)In non-Govt. PAs the minimum no. of recoveries should be for at least 500.
f)The service charges should not be deducted from the premium.
9. What action has to be taken if a cheque of SSS collections bounces back on account of
Cheque Dishonour?
In rare cases some of the cheques of SSS collections may bounce back on account of Cheque
Dishonour. The following procedure is to be adopted in such cases.
A) Cheque Dishonour action before appropriation:
If the respective SSS Collections are not appropriated, appropriation shall not be proceeded with. A note
is taken of the fact of Cheque Dishonour in the SSS Collection cash book closing the entry and also on
the Receipt counter part and regularly followed- Up for its recovery. An entry will be made in the Cheque
Dishonour Register. The particular due month will remain as PA gap until fresh remittance is received
and appropriated.
B) Cheque Dishonour action after appropriation:
If the SSS collection is already appropriated, the adjustment need not be cancelled and the agency
commission need not be recovered. But the same is treated as debit by the PA. The amount is debited to
personal Account of the PA and followed up closely for recovery. A note is taken of the fact of Cheque
Dishonour in (i ) SSS collection cash book sheets, ii) Invoice copy of the PA file ,iii) Appropriation sheet ,
and iv) Premium Ledger Sheet.(Group Ledger Sheet). Entries are also made in a) Cheque Dishonour
Register and
b)Personal account of the PA register. Whenever a cheque in respect of SSS Collection is Dishonored
the amount of Dishonored Cheque should be debited to PA Personal Account in the first instance by
Accounts Department irrespective of whether the collections are adjusted or not. If the collection is
already adjusted the debit entry to PA personal Account holds good. If the collection is not SSS
department will pass a journal entry debiting SSS collection account and rediting personal account of
PA. Fresh remittances received in respect of Dishonors after appropriation should be credited to
personal account of the PA .If they are credited to SSS Collection a/c by oversight appropriate reversal
entry has to be made by debiting SSS collection a/c and crediting Personal Account.

73
 SALES DEPARTMENT

1. What is meant by FCA & CA payable to Dev.Officers?

ans. Fixed Conveyance allowance (FCA): FCA is payable to all Dev.Officers including probationary
Dev.Officers, ADOs who are having touring duties. It is a fixed sum per month payable for having toured
the area for development and procuration of new business. FCA is fixed on 1st of April every year
depending upon
a. Completed new business during the immediately preceding financial year.
b. Type of vehicle maintained by Dev.Officer.
Conveyance Allowance(CA): Conveyance allowance is being paid to all the Dev.Officers who are having
touring duties and it varies on lines with whether the Dev.Officer is confirmed or on probation, whether
using motor cycles/Motor cars or without any conveyance. For Dev.Officers who are not having any fast
moving conveyance, pedastrian allowance will be paid.
2. What is meant by out of pocket expenses paid to ADOs?
ans. An amount equal to 4.5% of first year's premium received during the field training period will be paid
as out of pocket expenses subject to the following conditions:
1. Concerned agencies shall be in force on date of completion of Probation.
2. It will be paid only on successful completion of probationary period.
3. Completion of 4.5% should be with reference to first premium and first year renewal premium actually
received and adjusted during field training period.
4. Policies shall be in force on the date of completion of probationary period.
3.What is the duration of Apprenticeship period of ADOs & probationary period of PDOs ?
A). Duration of Apprenticeship period of ADOs: 3 months
Duration of probationary period of PDOs : 12 months
4. Is IB received by Dev.Officer taxable?
ans. Incentive Bonus received by Dev.Officers are taxable.
5. What is the cost ratio to be maintained by Dev.Officer to get GOIB scheme?
ans. A Dev.officer is eligible for IB only if his cost ratio is worked out to be less than or equal to 16%. If
cost ratio exceeds 16%, no incentive Bonus will be paid.
6. What is appraisal period?
ans. Appraisal period means a continuous uninterrupted period of 12 months commencing on the first
day of every calendar month and ending on the last day of every month on which date 12 months period
is completed from commencement. The Dev.Officer's appraisal period will be extended on granting of
EOL which is not condoned for purpose of increment.
7. What are the expenses that are taken into account while calculating cost ratio?

74
ans. The expenses that are taken into account while calculating cost ratio includes expenses paid or
reimbursed to him or incurred by the Corporation during that year in respect of travelling, residential
telephone and insurance premium and taxes on motor vehicles and F.C.A. but does not include incentive
bonus paid to him. The other expenses that go into cost are basic pay, special pay, personal pay,
dearness allowance and all other allowances and non-profit sharing or exgratia bonus due or paid during
the appraisal period.
08. How many times advances can be granted to Dev.officers against incentive bonus?
ans. There will be a maximum of 3 advances against basic IB in an appraisal year. A minimum of 2
months must elapse between 2 advances against incentive bonus. First advance payable after
completion of 6 months.
09. Who becomes SBA ? What are the benefits of SBA.
ans. Confirm Development officer with 8% cost ratio is eligible for SBA.
(1) Transaction fee per transaction Rs.10/- (2) I proposal- per proposal Rs.30/-
(3) BOC- Rs.10/- per transaction
10. How many stagnation increments can be granted to a Dev.officer and in what time durations?
ans. 4 stagnation increments can be granted to a dev.officer after reaching maximum of scale applicable
to a dev.officer and 3 years duration should elapse in between the increments.
11. What are the categories of agents those cannot be allotted to a dev.officer?
ans. Categories of agents who can be allotted:
a.CM club member
b.DM club member (can be allotted for compensatory Organisation)
c.ZM club member(can not be allotted for compensatory organisation)
d. Agents qualified for LIRT and MDRT.
e. UCAs
f. LIC employees who have taken up agency after retirement.
g. Agents who have completed a New Business of Rs.5 lakhs premium or above in any or more of 3
proceeding agency years or who has insured 75 lives in any or more of 3 preceeding agency years.
12.When did the Agents Regulations come into force?
Ans. Agents' Regulation came into force with effect from 1.5.1972.
13. Who is an absorbed Agent ?
Ans. An Absorbed Agent is one who was appointed prior to 1972 i.e.1.5.1972.
14. Can an Agent be appointed at any place?
Ans. Yes, an Agent can be appointed at any place within the jurisdiction of the Branch office.
15. What are the qualifications for appointment of conventional
agents(ord.agents)and Rural career Agents ?
(1)CONVENTIONAL OR ORDINARY AGENTS(2) RURAL CAREER AGENTS
1.Qualifications:
a)Depending upon the population 1.a)ssc passed.
less than 5000 - SSC.

75
b)More than 5000 -INTER
2.Age Minimum:18 years. 2.Minimum-21years
Maximum :No restriction/ Maximum-35yearsRelaxation-35 to 40years (for SC/ST candidates)
3.No stipend is paid 3. Stipend is payable
4.Business for first 2 years
1st year-12 lives/40000/60000/75000 / 1st year-30 lives-5lakhs
2nd year and subsequent years 2nd year and subsequent -12
lives/60000/75000/1 lakh years 40 lives -6 lakhs.
16. What is the main objective for introducing club membership in the Corporation?
ans. To professionalise agency force. To provide some status in the public. To conserve the business of
the Agents and to increase the conservation ratio.
17. What is the qualifying year of club membership?
ans. Qualifying year for club membership is the financial year preceding the membership year.
18. What is the maximum amount of gratuity to an agent?
ans. The maximum amount of gratuity payable to an agent is 2 lakh.
19.How many no.of maximum Qualifying years are allowed for payment of
gratuity?
ans. Maximum no.of QYs allowed for payment of gratuity 25 years.
20. How many times an agency can be reinstated?
ans. For two times-> Before 5 years of Agency- after 5 years no limit.
21 What is incentive bonus?
ans. IB is payable when the cost ratio of development officer is less than 16% in an appraisal year.
22. How are Dev. Officers work in rural area rewarded?
Ans:- a) Awarding 5 marks at the time of promotion to the cadre of ABM(s). (b) Rural credit of 10% on
basic IB.
23. What is cost ratio of Dev. Officers?
Ans:- Cost ratio is the ratio of annual remuneration and Gross SFYPI.
Annual remuneration
Cost ratio = --------------------
Gross SFYPI
24. What are the penalties under work norms?
ans.A. Cut in CA B. No increment C.Decrement
25. When a Dev.Officer attracts the penalty of termination?
ans.The services of a Dev.Officer become liable for termination.
a.If the cost ratio in any Appraisal year exceeds 50% and the ratio of the aggregate of the expenses in
that year plus the two immediately preceding appraisal years to the aggregate SFYPI, in those year
exceeds 50%.
b. If as a consequence of the application of disincentives detailed in the table, the basic pay falls on a
second occasion to be fixed below the minimum of the scale on which he is born.

76
26. What is Telephone year?
ans.Telephone year-from the date of installation of telephone at the residence of the Development
Officer to the end of the month, wherein 12 months period is completed.
27. What are eligible conditions for getting a phone?
ans.1. The cost ratio in the last A.Y. is less than 20%
2. The SFYPI in the last A.Y.is more than 1 lakh
3. The business in the last A.Y. is more than 20 lakhs.
4. There is no windfall of business.
28. What are eligibility conditions for a scheme II two wheeler?
a) To Confirm Development officer who has worked with in prescribed cost ratio in the last appraisal
year.
b) To the probationary Development officers subject to guarantees. MM (DM)
c) To confirmed Development Officer who has exceeded prescribed expenses limit but not exeeded 30%
in the last appraisal MM (DM)
d) To confirmed Development Officers whose cost ratio is beyond 30% but not exceeding 50% in the last
appraisal year. SDM
e) Cost Ratio 35% to 40% in the last appraisal year RM (Mrkt)
f) Cost Ratio40% to 50% ZM
29. Is it possible for an agent to become a Chairman's club member strait away without becoming
a member of the lower club.
ans. YES.
30. What is the qualifying year for club membership?
ans. Qualifying year for club membership is the financial year immediately preceding the club
membership year.
ex:- Club membership year 01.09.2001 to 31.08.2002
the qualifying year is 01.04.2000 to 31.03.2001
31. What is membership year?
ans. Club membership year starts by 1st September and ends by 31st August of the following year.
32. What is life membership?
ans. Life membership year-- If a club member enjoys in the same level of club for the 15 years, then he
is awarded life membership.
33. What happens to the club membership when the agency is terminated?
ans. He automatically loses the club membership.
34. What happens when a terminated agent reinstated as an agent?
ans. The agent has to fulfill the required norms afresh. He is treated as a new entrant.
35. From what level of club membership office expenses allowed?
ans. DMs Club member, ZMs club member, and CMs club member.
Rs.12000-> Rs.22000 ->Rs.35000

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(or) 50% of actual expenses or 7.5% of total commission earned in the preceding financial year which is
less.
36. What are the conditions for an agent to become eligible for gratuity?
ans. 1. On completion of 60 year of age and he must have 15 Qualifying years to his credit.
2. If an agent is terminated he must have 15 Q.Y.s to his credit.
3. Death during service
37. What is meant by QY under Gratuity Rule?
ans. Q.Y. is the agency year in which the agent has fulfilled MAB.(Minimum Business Guarantee).
38. Can an agent opt to receive gratuity at a later age would give notice to the Corporation for
this? If so, when?
ans. Yes, at age of 59 years he has to serve notice to the Corporation to take gratuity at the age of 65
years.
39. An agent who has put in the requisite no.of qualifying years and otherwise eligible for gratuity
applies for when he is of 45 years old can this paid?
ans. NO
40. Will it make different if the same agent resigns at the age 45, after completing the requisite
no.of qualifying years?
ans. The agency is terminated and he has 15 QYs then gratuity is payable to him.
41. How gratuity is calculated to be payable to an agent?
ans. Eligibility ratio= Aggregate Yly. R.C
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For 15 years= E.R. x 15 for over and above 15 years = Half of the ER (Max.10 years)
Max Gratuity = Rs.2,00,000/-
42. What is the basis on which term assurance is paid to agents ? What is the minimum and
maximum term assurance payable as per regulations?
ans. He must have a own policy on his own life and it should be in force at the time of death. b. He must
have to his credit 3 or more Qualifying Years at the time of death.c.Minimum Rs.3000/- and maximum
Rs.10000/-.
43. Can an exempted agent be paid Bonus commission?
ans. Yes, if he has to his credit 15 more QYs at the time of exemption.

SALES QUESTIONNAIRE
1. What are the incentives available to Dev.Officers to improve the performance?
ans. (A) Payment of IB and ACA at the end of the appraisals.(b) Providing interest free vehicle advance.
(c) Providing jeep (Corporation or Private)(d) Providing with telephone.(e) Supply of visiting cards to
Development Officers.(f) Payment of FTA while on tours.
2. What is Career Agency?
ans. To professionalize the agency by payment of stipend.
3. What do you understand by segment in Development of business?
ans. Segment is the group of same occupation.

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4. What broadly are the benefits available to the club members?
ans. (A) Free supply of visiting cards, envelopes, letterheads.(b)Club embership certificate, badges.(c)
Granting interest free vehicle advance.(d) Concessional housing loan facility.(e) Payment of office
allowance.(f) Participate in club convention.(g) Authorising the club agents to give MHR for higher limits
5. What are the duties of a Development officer?
ans. A) Appointment of suitable agents to procure new business(b) To render prompt service to the
policyholders(c) To work within the work norms.
6. What is meant by Gross scheduled first premium income?
ans. Total first year premium income secured by the Development officer during the app.year is
scheduled according to nature of the plan and duration (term) of the plan is called "Gross SFYPI".

7. What is meant by cost ratio of development officer and what is prescribed cost ratio?
ans. Cost ratio= Expenses / Gross SFYPI
Prescribed Cost ratio : 19%
8. What is the basis for working out the gratuity for agents?
ans. a. QYs b.RC of QYs c.Relevant Date d.Eligibility rate.
9. Outline the work norms for a Development Officer?
ans. The Development Officer has to work within the work norms. If the cost ratio exceeds the prescribed
Cost Ratio the disincentives will be imposed as per work norms.

11. What are the disincentives provided for Development Officers?

ans. (a) Cut in CA (b) No increment (c) Decrement.
12. What is Bonus Commission?
ans. Bonus commission is additional incentive payable to agents on First year's commission in an
agency year, if he fulfils certain norms. Bonus commission is payable at the rate of 40% of First year's
commission.
conditions: (a) He should be a confirmed agent.
(b) Business - 6 lives and FY premium Rs.50,000.
13. Can you take disciplinary action against a Dev. Officer for poor performance under Staff
Regulation 39?
ans. No action will be taken as per work norms for poor performance and disincentives will be imposed.
14. What are the types of advances paid to Agents?
ans.(a) Festival advance (b) Vehicle advance © Flood/Cyclone advance (d)Advance for purchase office
equipment (e) Lump sum advance (f) Computer Advance (g) Advance for dairies and calendars.
15. What are the criteria on which the promotion of development officers to ABM(s) based?
ans. Service, Business performance,lapse ratio, Interview & Qualification Marks.
16. Why MAB is required for an agent?
ans. To keep the agency in force.
17. How term assurance is calculated for agent and condition for the same?

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ans. Amount of term insurance payable will be based on the average annual RC earned in the 3 agency
years immediately proceeding the date of death and will be in the following scale:-
AVERAGE COMMISSION AMOUNT OF TERM INSURANCE
A. If the average commission is Rs.3,000 less than Rs.1,001/-
B. If the average commission is Rs.3,000/- + Half of the less than Rs.1,001 but less than commission
over Rs.1000 Rs.15,000.
C. Greater than Rs.15,000/- Rs.10,000/-
Conditions:
A. In the event of death of an agent while agency subsists.
a. He had not completed 50 years on the date of his appointment.
b. He died before he has completed 60 years.
c. He had an insurance policy on his own life at least for Rs.5000/-
d. He was a confirmed agent and had to his credit 3 or more qualifying years at the date of death.
18. When is an agent eligible for renewal commission (ERC) Rs.?
ans. In the event of termination of agency, except for fraud, the commission is continued to be paid.
a. Continuously worked as an agent for atleast 10 years.
b. Continuously worked as an agent for 5 years and policies of 2 lakhs were inforce on a date one year
before his ceasing to act as an agent.
c. In case of termination due to physically or mentally incapacitated then he has to work for atleast 2
years and a business of Rs.1 lakh was in full force on the date immediately prior to such termination.
d. In the event of death he has to work continually as an agent for not less than 2 years and a business
of not less than 1 lakh was in full force on the date immediately prior to his death.

MISCELLANEOUS QUESTIONS
1. Quarantine Leave:
1.This is a leave of absence from duty necessitated by order not to attend office in consequence of
presence of infectious disease in the household of the Employee (not the employee himself).
2.This leave may be granted on the Certificate of Medical/Public health Officer, GOVT. Doctor, GOVT.
Hospital or qualified Medical Practitioner appointed by LIC.
3.Period of leave is normally not exceeding 21 Days – in exceptional circumstances it may extend to
thirty days .
4.Cholera, Plague, and Small- Pox are considered infectious disease for the purpose of Quarantine
Leave. In case of Chicken-Pox, Quarantine Leave may be granted if the Medical Officer expresses doubt
as to the nature of the disease and he is unable to distinguish between Small- Pox and Chicken-Pox.
5.On resuming duty, the employee should produce a Certification from the Medical Practitioner to show
that he has been cured and is no more in infectious stage and that he is fit to resume duty.

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2.Compound Reversionary Bonus:

Bonus is the benefit received by the of the Policyholder for their Policies which may result into claim by
Death or Maturity, which equivalent to the excess of premium paid by them over what is warranted by
their experience .In the case of Compound Reversionary Bonus, the percentage addition applies to the
Basic Sum Assured plus the vested Bonus additions already made. If Basic Sum Assured in Rs.5000/-
and the Bonuses already declared amounts to Rs.1000/-, if Simple Reversionary bonus of 20 per
thousand is declared it would make an increase in benefit of Rs.5000x20/1000 or Rs100/-.

3. What do you understand by Surrender value? How does it arise?

Changing level premiums for an increasing risk results in accumulation of funds. Every policy has a
share in this fund. This can be paid to Policy holders who wish to withdraw from the Life Insurance
Contract.
This reserve cannot be paid in full to the Policy holder because of the following reasons:
1.The expenses during the first year are heavy. Medical Examiner’s Fee, Agents’ Commission
Development Officers Incentive Bonus, Policy preparation charges etc. are there. The Insurer hopes to
recover as and when subsequent premiums are paid. Early withdrawals results in a loss to the insurer. A
reduced amount is payable to those who withdraw.
2.Persons in bad health are not likely to withdraw. Only persons in good health are likely to withdraw.
Thus the average experiences expected by the insurer will be upset. To provide for this adverse
selection a charge is made from the Policy Reserve.
3.Surrender value is that portion of the Policy Reserve which is paid to the Policy holder in cancellation
of the Policy contract. Three years premiums are to be paid in order to be eligible for surrender value.

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ध यवाद

THANK

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