CONTENTS

Acknowledgements Banking : An Introduction

o Definitions Of Bankingo Features Of Banking

Insurance : An Introductiono Overviewo Types Of Life Insuranceo Related Life Insurance Productso Investment Policieso Annuitieso Criticism

Company Profile

o History And Overview

o Promoters

o Mission And Values

o Business Divisions

o ABOUT MetLife

o Life Insurance Products

Met Magic – A Unit Linked Child Plano Key Benefits Of Met Magic

o Plan At A Glance

o Benefits In Detail

o Unit-Linked Fund Options For Investments Of Your Premium

o Other Flexible Benefits

o Policy Charges

o Other Provisions And Conditions

o Statutory Warning

o Glossary

Bibliography

BANKING : AN INTRODUCTION

The Banking Regulation Act, 1949, Section 5(b), defines Banking as

“ACCEPTING FOR THE PURPOSE OF LENDING OR INVESTING DEPOSITS OF

MONEY FROM THE PUBLIC PAYABLE ON DEMAND OR OTHERWISE AND

WITHDRAWABLE BY CHEQUE, DRAFT, ORDER OR OTHERWISE”

CROWTHER define banking as

“One that collects money from those who have it to spare or who are saving it out of their

income and lands the money so collected to those who require it”

SIR KINELY define banking as

“A bank is an establishment which makes to individuals such advances of money as may be

required and to which individuals entrust money when not required by them for use”

Features of Banking:

1. Dealing in money : The banks accept deposit from public and advancing them as loan to the

needy people. The deposits may be different types - current, fixed, saving, accounts etc. The

deposits are accepted on various terms and conditions.

2. Deposits must be withdraw able : The deposits (other than fixed deposits) made by the public

can withdrawal by cheques, draft or otherwise, i.e., the bank issue or pay cheques. The

deposits are usually withdraw able on demand.

3. Dealing with credit : The banks are the institutions that can create credit i.e., creation for

additional money for lending thus, “creation of credit” is the unique features of banking.

4. Commercial in nature : Since all the banking functions are carried on with the aim of making

profit, it is regarded as a commercial institution.

5. Nature of agent : Besides the basic functions of accepting deposits and lending money as

loans, bank posses the character of an agent because of its various agency services.

The total numbers of all commercial banks including non-scheduled and foreign banks

operating in India are given below:

Number of Bank Branches:

Year end: 1998 1999 2000 2001 2002

Branches: 66408 67157 67868 67937 68195

INSURANCE : AN INTRODUCTION

OVERVIEW

Parties to contract

66408

67157

67868

67937

68195

65500

66000

66500

67000

67500

68000

68500

1998 1999 2000 2001 2002

YEARS

NO. OF BRANCHES

BRANCHES

There is a difference between the insured and the policy owner (policy holder), although the

owner and the insured are often the same person. For example, if Joe buys a policy on his own

life, he is both the owner and the insured. But if Jane, his wife, buys a policy on Joe's life, she is

the owner and he is the insured. The policy owner is the guarantee and he or she will be the

person who will pay for the policy. The insured is a participant in the contract, but not

necessarily a party to it.

The beneficiary receives policy proceeds upon the insured's death. The owner designates the

beneficiary, but the beneficiary is not a party to the policy. The owner can change the beneficiary

unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary,

that beneficiary must agree to any beneficiary changes, policy assignments, or cash value

borrowing.

In cases where the policy owner is not the insured, insurance companies have sought to limit

policy purchases to those with an "insurable interest" in the CQV. For life insurance policies,

close family members and business partners will usually be found to have an insurable interest.

The "insurable interest" requirement usually demonstrates that the purchaser will actually suffer

some kind of loss if the CQV dies. Such a requirement prevents people from benefiting from the

purchase of purely speculative policies on people they expect to die. With no insurable interest

requirement, the risk that a purchaser would murder the CQV for insurance proceeds would be

great. In at least one case, an insurance company which sold a policy to a purchaser with no

insurable interest (who later murdered the CQV for the proceeds), was found liable in court for

contributing to the wrongful death of the victim (Liberty National Life v. Weldon, 267 Ala.171

(1957)).

Contract terms

Special provisions may apply, such as suicide clauses wherein the policy becomes null if

the insured commits suicide within a specified time (usually two years after the purchase

date; some states provide a statutory one-year suicide clause). Any misrepresentations by

the insured on the application is also grounds for nullification. Most US states specify

that the contestability period cannot be longer than two years; only if the insured dies

within this period will the insurer have a legal right to contest the claim on the basis of

misrepresentation and request additional information before deciding to pay or deny the

claim.

The face amount on the policy is the initial amount that the policy will pay at the death of the

insured or when the policy matures, although the actual death benefit can provide for greater or

lesser than the face amount. The policy matures when the insured dies or reaches a specified age

(such as 100 years old).

Costs, insurability, and underwriting

The insurer (the life insurance company) calculates the policy prices with intent to fund claims to

be paid and administrative costs, and to make a profit. The cost of insurance is determined using

mortality tables calculated by actuaries. Actuaries are professionals who employ actuarial

science, which is based in mathematics (primarily probability and statistics). Mortality tables are

statistically-based tables showing expected annual mortality rates. It is possible to derive life

expectancy estimates from these mortality assumptions. Such estimates can be important in

taxation regulation.

The three main variables in a mortality table have been age, gender, and use of tobacco. More

recently in the US, preferred class specific tables were introduced. The mortality tables provide a

baseline for the cost of insurance. In practice, these mortality tables are used in conjunction with

the health and family history of the individual applying for a policy in order to determine

premiums and insurability. Mortality tables currently in use by life insurance companies in the

United States are individually modified by each company using pooled industry experience

studies as a starting point. In the 1980s and 90's the SOA 1975-80 Basic Select & Ultimate tables

were the typical reference points, while the 2001 VBT and 2001 CSO tables were published

more recently. The newer tables include separate mortality tables for smokers and non-smokers

and the CSO tables include separate tables for preferred classes.

Recent US select mortality tables predict that roughly 0.35 in 1,000 non-smoking males aged 25

will die during the first year of coverage after underwriting. Mortality approximately doubles for

every extra ten years of age so that the mortality rate in the first year for underwritten non-

smoking men is about 2.5 in 1,000 people at age 65. Compare this with the US population male

mortality rates of 1.3 per 1,000 at age 25 and 19.3 at age 65 (without regard to health or smoking

status).

The mortality of underwritten persons rises much more quickly than the general population. At

the end of 10 years the mortality of that 25 year-old, non-smoking male is 0.66/1000/year.

Consequently, in a group of one thousand 25 year old males with a $100,000 policy, all of

average health, a life insurance company would have to collect approximately $50 a year from

each of a large group to cover the relatively few expected claims. (0.35 to 0.66 expected deaths

in each year x $100,000 payout per death = $35 per policy). Administrative and sales

commissions need to be accounted for in order for this to make business sense. A 10 year policy

for a 25 year old non-smoking male person with preferred medical history may get offers as low

as $90 per year for a $100,000 policy in the competitive US life insurance market.

The insurance company receives the premiums from the policy owner and invests them to create

a pool of money from which it can pay claims and finance the insurance company's operations.

Contrary to popular belief, the majority of the money that insurance companies make comes

directly from premiums paid, as money gained through investment of premiums can never, in

even the most ideal market conditions, vest enough money per year to pay out claims. [citation needed]

Rates charged for life insurance increase with the insurer's age because, statistically, people are

more likely to die as they get older.

Given that adverse selection can have a negative impact on the insurer's financial situation, the

insurer investigates each proposed insured individual unless the policy is below a company-

established minimum amount, beginning with the application process. Group Insurance policies

are an exception.

This investigation and resulting evaluation of the risk is termed underwriting. Health and

lifestyle questions are asked. Certain responses or information received may merit further

investigation. Life insurance companies in the United States support the Medical Information

Bureau (MIB), which is a clearinghouse of information on persons who have applied for life

insurance with participating companies in the last seven years. As part of the application, the

insurer receives permission to obtain information from the proposed insured's physicians.

Underwriters will determine the purpose of insurance. The most common is to protect the

owner's family or financial interests in the event of the insurer's demise. Other purposes include

estate planning or, in the case of cash-value contracts, investment for retirement planning. Bank

loans or buy-sell provisions of business agreements are another acceptable purpose.

Life insurance companies are never required by law to underwrite or to provide coverage to

anyone, with the exception of Civil Rights Act compliance requirements. Insurance companies

alone determine insurability, and some people, for their own health or lifestyle reasons, are

deemed uninsurable. The policy can be declined (turned down) or rated. Rating increases the

premiums to provide for additional risks relative to the particular insured.

Many companies use four general health categories for those evaluated for a life insurance

policy. These categories are Preferred Best, Preferred, Standard, and Tobacco. Preferred Best is

reserved only for the healthiest individuals in the general population. This means, for instance,

that the proposed insured has no adverse medical history, is not under medication for any

condition, and his family (immediate and extended) have no history of early cancer, diabetes, or

other conditions. Preferred means that the proposed insured is currently under medication for a

medical condition and has a family history of particular illnesses. Most people are in the

Standard category. Profession, travel, and lifestyle factor into whether the proposed insured will

be granted a policy, and which category the insured falls. For example, a person who would

otherwise be classified as Preferred Best may be denied a policy if he or she travels to a high risk

country. Underwriting practices can vary from insurer to insurer which provide for more

competitive offers in certain circumstances.

Death proceeds

Upon the insured's death, the insurer requires acceptable proof of death before it pays the claim.

The normal minimum proof required is a death certificate and the insurer's claim form

completed, signed (and typically notarized). If the insured's death is suspicious and the policy

amount is large, the insurer may investigate the circumstances surrounding the death before

deciding whether it has an obligation to pay the claim.

Proceeds from the policy may be paid as a lump sum or as an annuity, which is paid over time in

regular recurring payments for either a specified period or for a beneficiary's lifetime.

Insurance vs. Assurance

The specific uses of the terms "insurance" and "assurance" are sometimes confused. In general,

in these jurisdictions "insurance" refers to providing cover for an event that might happen (fire,

theft, flood, etc.), while "assurance" is the provision of cover for an event that is certain to

happen. "Insurance" is the generally accepted term, however, people using this description are

liable to be corrected. In the United States both forms of coverage are called "insurance",

principally due to many companies offering both types of policy, and rather than refer to

themselves using both insurance and assurance titles, they instead use just one.

TYPES OF LIFE INSURANCE

Life insurance may be divided into two basic classes – temporary and permanent or following

subclasses - term, universal, whole life and endowment life insurance.

Temporary Term Insurance

Term assurance: provides for life insurance coverage for a specified term of years for a specified

premium. The policy does not accumulate cash value. Term is generally considered "pure"

insurance, where the premium buys protection in the event of death and nothing else.

There are three key factors to be considered in term insurance:

1. Face amount (protection or death benefit),

2. Premium to be paid (cost to the insured), and

3. Length of coverage (term).

Various insurance companies sell term insurance with many different combinations of these

three parameters. The face amount can remain constant or decline. The term can be for one or

more years. The premium can remain level or increase. A common type of term is called annual

renewable term. It is a one year policy but the insurance company guarantees it will issue a

policy of equal or lesser amount without regard to the insurability of the insured and with a

premium set for the insured's age at that time. Another common type of term insurance is

mortgage insurance, which is usually a level premium, declining face value policy. The face

amount is intended to equal the amount of the mortgage on the policy owner’s residence so the

mortgage will be paid if the insured dies.

A policy holder insures his life for a specified term. If he dies before that specified term is up, his

estate or named beneficiary receives a payout. If he does not die before the term is up, he

receives nothing. In the past these policies would almost always exclude suicide. However, after

a number of court judgments against the industry, payouts do occur on death by suicide

(presumably except for in the unlikely case that it can be shown that the suicide was just to

benefit from the policy). Generally, if an insured person commits suicide within the first two

policy years, the insurer will return the premiums paid. However, a death benefit will usually be

paid if the suicide occurs after the two year period.

Permanent Life Insurance

Permanent life insurance is life insurance that remains in force (in-line) until the policy matures

(pays out), unless the owner fails to pay the premium when due (the policy expires OR policies

lapse). The policy cannot be canceled by the insurer for any reason except fraud in the

application, and that cancellation must occur within a period of time defined by law (usually two

years). Permanent insurance builds a cash value that reduces the amount at risk to the insurance

company and thus the insurance expense over time. This means that a policy with a million

dollar face value can be relatively expensive to a 70 year old. The owner can access the money in

the cash value by withdrawing money, borrowing the cash value, or surrendering the policy and

receiving the surrender value.

The four basic types of permanent insurance are whole life, universal life, limited pay and

endowment.

Whole life coverage

Whole life insurance provides for a level premium, and a cash value table included in the policy

guaranteed by the company. The primary advantages of whole life are guaranteed death benefits,

guaranteed cash values, fixed and known annual premiums, and mortality and expense charges

will not reduce the cash value shown in the policy. The primary disadvantages of whole life are

premium inflexibility, and the internal rate of return in the policy may not be competitive with

other savings alternatives. Also, the cash values are generally kept by the insurance company at

the time of death, the death benefit only to the beneficiaries. Riders are available that can allow

one to increase the death benefit by paying additional premium. The death benefit can also be

increased through the use of policy dividends. Dividends cannot be guaranteed and may be

higher or lower than historical rates over time. Premiums are much higher than term insurance in

the short-term, but cumulative premiums are roughly equal if policies are kept in force until

average life expectancy.

Cash value can be accessed at any time through policy "loans". Since these loans decrease the

death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary

upon the death of the insured; the beneficiary receives the death benefit only. If the dividend

option: Paid up additions is elected, dividend cash values will purchase additional death benefit

which will increase the death benefit of the policy to the named beneficiary.

Universal life coverage

Universal life insurance (UL) is a relatively new insurance product intended to provide

permanent insurance coverage with greater flexibility in premium payment and the potential for

a higher internal rate of return. There are several types of universal life insurance policies which

include "interest sensitive" (also known as "traditional fixed universal life insurance"), variable

universal life insurance, and equity indexed universal life insurance.

A universal life insurance policy includes a cash account. Premiums increase the cash account.

Interest is paid within the policy (credited) on the account at a rate specified by the company.

Mortality charges and administrative costs are then charged against (reduce) the cash account.

The surrender value of the policy is the amount remaining in the cash account less applicable

surrender charges, if any.

With all life insurance, there are basically two functions that make it work. There's a mortality

function and a cash function. The mortality function would be the classical notion of pooling risk

where the premiums paid by everybody else would cover the death benefit for the one or two

who will die for a given period of time. The cash function inherent in all life insurance says that

if a person is to reach age 95 to 100 (the age varies depending on state and company), then the

policy matures and endows the face value of the policy.

Actuarially, it is reasoned that out of a group of 1000 people, if even 10 of them live to age 95,

then the mortality function alone will not be able to cover the cash function. So in order to cover

the cash function, a minimum rate of investment return on the premiums will be required in the

event that a policy matures.

Universal life insurance addresses the perceived disadvantages of whole life. Premiums are

flexible. Depending on how interest is credited, the internal rate of return can be higher because

it moves with prevailing interest rates (interest-sensitive) or the financial markets (Equity

Indexed Universal Life and Variable Universal Life). Mortality costs and administrative charges

are known. And cash value may be considered more easily attainable because the owner can

discontinue premiums if the cash value allows it. And universal life has a more flexible death

benefit because the owner can select one of two death benefit options, Option A and Option B.

Option A pays the face amount at death as it's designed to have the cash value equal the death

benefit at maturity (usually at age 95 or 100). With each premium payment, the policy owner is

reducing the cost of insurance until the cash value reaches the face amount upon maturity.

Option B pays the face amount plus the cash value, as it's designed to increase the net death

benefit as cash values accumulate. Option B offers the benefit of an increasing death benefit

every year that the policy stays in force. The drawback to option B is that because the cash value

is accumulated "on top of" the death benefit, the cost of insurance never decreases as premium

payments are made. Thus, as the insured gets older, the policy owner is faced with an ever

increasing cost of insurance (it costs more money to provide the same initial face amount of

insurance as the insured gets older).

Limited-pay

Another type of permanent insurance is Limited-pay life insurance, in which all the premiums

are paid over a specified period after which no additional premiums are due to keep the policy in

force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65.

Endowments

Endowments are policies in which the cash value built up inside the policy, equals the death

benefit (face amount) at a certain age. The age this commences is known as the endowment age.

Endowments are considerably more expensive (in terms of annual premiums) than either whole

life or universal life because the premium paying period is shortened and the endowment date is

earlier.

Endowment Insurance is paid out whether the insured lives or dies, after a specific period (e.g.

15 years) or a specific age (e.g. 65).

Accidental Death

Accidental death is a limited life insurance that is designed to cover the insured when they pass

away due to an accident. Accidents include anything from an injury, but do not typically cover

any deaths resulting from health problems or suicide. Because they only cover accidents, these

policies are much less expensive than other life insurances.

It is also very commonly offered as "accidental death and dismemberment insurance", also

known as an AD&D policy. In an AD&D policy, benefits are available not only for accidental

death, but also for loss of limbs or bodily functions such as sight and hearing, etc.

Accidental death and AD&D policies very rarely pay a benefit; either the cause of death is not

covered, or the coverage is not maintained after the accident until death occurs. To be aware of

what coverage they have, an insured should always review their policy for what it covers and

what it excludes. Often, it does not cover an insured who puts themselves at risk in activities

such as: parachuting, flying an airplane, professional sports, or involvement in a war (military or

not). Also, some insurers will exclude death and injury caused by proximate causes due to (but

not limited to) racing on wheels and mountaineering.

Accidental death benefits can also be added to a standard life insurance policy as a rider. If this

rider is purchased, the policy will generally pay double the face amount if the insured dies due to

an accident. This used to be commonly referred to as a double indemnity coverage. In some

cases, some companies may even offer a triple indemnity cover.

RELATED LIFE INSURANCE PRODUCTS

Riders are modifications to the insurance policy added at the same time the policy is issued.

These riders change the basic policy to provide some feature desired by the policy owner. A

common rider is accidental death, which used to be commonly referred to as "double indemnity",

which pays twice the amount of the policy face value if death results from accidental causes, as if

both a full coverage policy and an accidental death policy were in effect on the insured. Another

common rider is premium waiver, which waives future premiums if the insured becomes

disabled.

Joint life: insurance is either a term or permanent policy insuring two or more lives with

the proceeds payable on the first death or second death.

Survivorship life: is a whole life policy insuring two lives with the proceeds payable on

the second (later) death.

Single premium whole life: is a policy with only one premium which is payable at the

time the policy is issued.

Modified whole life: is a whole life policy that charges smaller premiums for a specified

period of time after which the premiums increase for the remainder of the policy.

Group life insurance: is term insurance covering a group of people, usually employees

of a company or members of a union or association.

Senior and preneed products: Insurance companies have in recent years developed

products to offer to niche markets, most notably targeting the senior market to address

needs of an aging population. Many companies offer policies tailored to the needs of

senior applicants. These are often low to moderate face value whole life insurance

policies, to allow a senior citizen purchasing insurance at an older issue age an

opportunity to buy affordable insurance. This may also be marketed as final expense

insurance, and an agent or company may suggest (but not require) that the policy

proceeds could be used for end-of-life expenses.

Preneed (or prepaid) insurance policies: are whole life policies that, although available

at any age, are usually offered to older applicants as well. This type of insurance is

designed specifically to cover funeral expenses when the insured person dies. In many

cases, the applicant signs a prefunded funeral arrangement with a funeral home at the

time the policy is applied for. The death proceeds are then guaranteed to be directed first

to the funeral services provider for payment of services rendered. Most contracts dictate

that any excess proceeds will go either to the insured's estate or a designated beneficiary.

INVESTMENT POLICIES

With-profits policies

Some policies allow the policyholder to participate in the profits of the insurance company these

are with-profits policies. Other policies have no rights to participate in the profits of the

company, these are non-profit policies.

With-profits policies are used as a form of collective investment to achieve capital growth. Other

policies offer a guaranteed return not dependent on the company's underlying investment

performance; these are often referred to as without-profit policies which may be construed as a

misnomer.

Investment Bonds

Pensions: Pensions are a form of life assurance. However, whilst basic life assurance, permanent

health insurance and non-pensions annuity business includes an amount of mortality or morbidity

risk for the insurer, for pensions there is a longevity risk.

A pension fund will be built up throughout a person's working life. When the person retires, the

pension will become in payment, and at some stage the pensioner will buy an annuity contract,

which will guarantee a certain pay-out each month until death.

ANNUITIES

An annuity is a contract with an insurance company whereby the insured pays an initial premium

or premiums into a tax-deferred account, which pays out a sum at pre-determined intervals.

There are two periods: the accumulation (when payments are paid into the account) and the

annuitization (when the insurance company pays out). IRS rules restrict how you take money out

of an annuity. Distributions may be taxable and/or penalized.

CRITICISM

Although some aspects of the application process (such as underwriting and insurable interest

provisions) make it difficult, life insurance policies have been used in cases of exploitation and

fraud. In the case of life insurance, there is a motivation to purchase a life insurance policy,

particularly if the face value is substantial, and then kill the insured. Usually, the larger the claim,

and/or the more serious the incident, the larger and more intense will be the number of

investigative layers, consisting in police and insurer investigation, eventually also loss adjusters

hired by the insurers to work independently.

The television series Forensic Files has included episodes that feature this scenario. There was

also a documented case in 2006, where two elderly women are accused of taking in homeless

men and assisting them. As part of their assistance, they took out life insurance on the men. After

the contestability period ended on the policies (most life contracts have a standard contestability

period of two years), the women are alleged to have had the men killed via hit-and-run car

crashes.

Recently, viatical settlements have created problems for life insurance carriers. A viatical

settlement involves the purchase of a life insurance policy from an elderly or terminally ill policy

holder. The policy holder sells the policy (including the right to name the beneficiary) to a

purchaser for a price discounted from the policy value. The seller has cash in hand, and the

purchaser will realize a profit when the seller dies and the proceeds are delivered to the

purchaser. In the meantime, the purchaser continues to pay the premiums. Although both parties

have reached an agreeable settlement, insurers are troubled by this trend. Insurers calculate their

rates with the assumption that a certain portion of policy holders will seek to redeem the cash

value of their insurance policies before death. They also expect that a certain portion will stop

paying premiums and forfeit their policies. However, viatical settlements ensure that such

policies will with absolute certainty be paid out. Some purchasers, in order to take advantage of

the potentially large profits, have even actively sought to collude with uninsured elderly and

terminally ill patients, and created policies that would have not otherwise been purchased.

Likewise, these policies are guaranteed losses from the insurers' perspective.

COMPANY PROFILE

History and Overview

Axis Bank was the first of the new private banks to have begun operations in 1994, after the

Government of India allowed new private banks to be established. The Bank was promoted

jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life

Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and

other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India

Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance

Company Ltd.

The Bank today is capitalized to the extent of Rs. 357.71 crore with the public holding (other

than promoters) at 57.49%.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai.

Presently, the Bank has a very wide network of more than 671 branch offices and Extension

Counters. The Bank has a network of over 2764 ATMs providing 24 hrs a day banking

convenience to its customers. This is one of the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed to adopting the

best industry practices internationally in order to achieve excellence.

Promoters

Axis Bank Ltd. has been promoted by the largest and the best Financial Institution of the

country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs.

100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each.

SUUTI Shareholding 27.02%

Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a

view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed

with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the

Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with

effect from 1st February 2003. In accordance with the Act, the Undertaking specified as UTI I

has been transferred and vested in the Administrator of the Specified Undertaking of the Unit

Trust of India (SUUTI), who manages assured return schemes along with 6.75% US-64 Bonds,

6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores.

The Government of India has currently appointed Shri K. N. Prithviraj as the Administrator of

the Specified undertaking of UTI, to look after and administer the schemes under UTI - I, where

Government has continuing obligations and commitments to the investors, which it will uphold.

MISSION AND VALUES

Mission

Customer Service and Product Innovation tuned to diverse needs of individual and

corporate clientele.

Continuous technology upgradation while maintaining human values.

Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

Core Values

Customer Satisfaction through

o Providing quality service effectively and efficiently

o "Smile, it enhances your face value" is a service quality stressed on

o Periodic Customer Service Audits

Maximization of Stakeholder value

Success through Teamwork, Integrity and People

UTI Bank to AXIS Bank – The Transition

UTI Bank has rebranded itself as AXIS BANK on July 30, 2007. Rebranding follows approvals

from the Board, Shareholders and the Reserve Bank of India, and after obtaining a new

certificate of incorporation from The Registrar of Companies. The Bank had used the UTI brand

with great pride for the last 13 years, and has in recent years strongly contributed to the

resurgence of the UTI brand. The rebranding has been necessitated due to the limitations on the

use of the brand after January 2008.

The Bank has therefore decided to create a distinct brand identity for itself. Rebranding provides

an opportunity to communicate elements of personality, values and vision, which are specific to

the Bank. This rebranding becomes more important as the Bank takes its initial steps in

establishing a global footprint.

Axis as a name is simple; it connotes solidity and stature, and conveys a sense of authority and

credibility. Axis as a brand further has the ability to transcend geographical boundaries - this is

relevant as the Bank has built an initial pan-Asian network with offices in Singapore, Hong

Kong, Shanghai and Dubai, and seeks to expand further its international presence. Graphically,

in the new logo, the first stroke depicts forward growth while the second stroke signifies a solid

support system. The two thick strokes also connote solidity and security.

The rest of the Bank remains the same. The same people, same facilities and the same products

and services would continue to be offered.

What does not change?

All existing credit and debit cards will be valid until replacement or renewal.

All the existing cheque books will be usable and new cheque books with Axis Bank

branding will be issued on fresh requests from you.

BUSINESS DIVISIONS

Broadly, the activities undertaken by the bank are as follows:

Treasury Management

Merchant Banking

Financial Advisory Services

Corporate & Institutional Banking

Retail Banking

Treasury

Treasury is responsible for the maintenance of the statutory requirements such as the Cash

Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR) and the investment of such funds. It also

manages the assets and liabilities of the bank

Merchant Banking

Axis Bank is a registered Merchant Banker. The services offered are:

Issue Management: The bank advises clients on designing its capital structure,

instruments offered to the public, pricing such instruments, meeting regulations and

finally assisting the company in marketing the issue.

Debenture Trustees: The role of the debenture trustee is to safeguard the interest of the

debenture holder by creating a security in their favour and monitoring the security.

Investments: Managing the non-SLR investments of a bank.

Depository Services: Capital market related services: The bank is a clearing bank for the

BSE/ NSE/ OTCEI, acting as intermediaries in the flow of funds from the accounts to

broker accounts.

Financial Advisory Services

All branches have a dedicated Financial Advisory Desk, wherein the mutual fund schemes are

marketed. The objective is to provide consumers with a larger portfolio of investment avenues

thereby enhancing customer relationship.

Corporate & Institutional Banking

Cash Management Services

Business Current Accounts

Correspondent Banking

Government Business

Retail Banking

Retail banking is one of the key departments in the bank. It has the largest variety in its portfolio

which consists of Retail asset products and retail liability products. Retail Banking, by definition

implies banking services which are offered to individual customers as opposed to corporate

banking, which is meant for companies.

Retail Asset Portfolio

Retail asset portfolio consists of those products which fetch the bank income through interest. i.e.

loans. Given below is an array of products which the retail assets portfolio of our bank consists

of:

Home Loans – Power Home

Vehicle Loans – Power Drive

Personal Loans – Personal Power

Consumer Loans – Consumer Power

Education Loans – Study Power

Retail Liabilities Portfolio

Liability means anything which results in an expenditure to the company. Retail liability

products therefore are those products for which our bank has to pay interest to the customers.

These are different types of savings bank accounts, FDs etc. In order To suit the needs of

different customers our bank has designed several different types of savings bank products.

Given below is the latest list.

Easy Access Account

Salary Power

Power Salute

Azaadi - No Frills

Senior Privilege

Smart Privilege

Trust/NGO Savings Account

NRI Accounts, Priority Banking

Major Competitors of AXIS Bank

1. ICICI BANK

2. HDFC BANK

3. STANDARD CHARTED BANK

4. STATE BANK OF INDIA

ABOUT MetLife

MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife Inc. and was

incorporated as a joint venture between MetLife International Holdings, Inc., The Jammu and

Kashmir Bank, M. Pallonji and Co. Private Limited and other private investors. MetLife is one

of the fastest growing life insurance companies in the country. It serves its customers by offering

a range of innovative products to individuals and group customers through the company-owned

offices and its bank partners. MetLife has a strong team of Financial Advisors, who help

customers, with their right product advice, achieve peace of mind across the length and breadth

of the country.

MetLife Inc., through its affiliates, reaches more than 70 million customers in the Americas,

Asia Pacific and Europe. Affiliated companies, outside of India, include the number one life

insurer in the United States (based on life insurance inforce), with over 140 years of experience

and relationships with more than 90 of the top one hundred FORTUNE 500® companies. The

MetLife companies offer life insurance, annuities, automobile and home insurance, retail

banking and other financial services to individuals, as well as group insurance, reinsurance and

retirement and savings products and services to corporations and other institutions.

Life Insurance Products

MetLife India offers you a wide choice of life insurance plans that help you take care of your

varied needs like protection, wealth accumulation & long term savings for children's education,

children's marriage, retirement, tax savings etc.

MetLife India, through their trained & certified Financial Planning Consultants will help you in

ascertaining your protection and investment needs.

Met Monthly Income Plan-

Guaranteed Monthly Income Plan (Par) 'Met Monthly Income Plan' a participating

endowment plan which guarantees you and your family a monthly regular income for 15

years and ensures you live life your way.

Met Growth*-

Unit-linked Life Insurance Plan (Non-Par) 'Met Growth' a Unit Linked solution to

provide financial security for your retirement years.

Met Advantage Plus*-

Unit-linked Pension Plan (Non Par) Met Advantage Plus is a Unit Linked Pension Plan

that helps you build wealth while you are working and gives you a pension for life when

you stop working.

Met Bhavishya-

Guaranteed Money back child plan (Non Par) Met Bhavishya is a guaranteed money

back insurance plan that provides funds to meet education and career milestones of your

child.

Met Magic * -

Unit-linked (Non-Medical) child plan (Non Par) Met Magic is a unit linked plan which

helps you secure your child's future.

Met Easy*-

Unit-linked (Non-Medical) Insurance Plan (Non Par) Met Easy is a simplified unit-

linked Insurance plan that provides you the benefit of insurance protection for your

family and the opportunity to systematically build wealth for your key long- term

financial milestones.

Met Smart Plus* -

Unit-linked Insurance Plan (Non Par) Met Smart Plus is a regular premium unit linked

life insurance that provides life cover up to age 100 years and also helps you build wealth

for all your needs.

Met Smart Gold*-

Unit-linked Insurance Plan (Non Par) Met Smart Gold is a unit-linked wealth creation

cum protection plan designed to plan for your financial needs.

Met Suvidha (Par)/(Non Par)-

A flexible endowment plan that combines savings with security Met Suvidha (Par) is a

Flexible Endowment Plan that combines savings and security.

This plan also comes in a Non Par version which pays a completely guaranteed maturity

benefit in the form of a Sum Assured.

Met Smart Premier* -

Unit-linked Insurance Plan (Non Par) Met Smart Premier is a regular premium unit

linked life insurance plan that provides life cover up to age 100 and also helps you build

wealth for all your needs.

Met Sukh- Money-Back Plan (Non Par) Met Sukh is a guaranteed Money-Back plan that

offers 10% guaranteed additions on Sum Assured for every policy year.

MET MAGIC

It's choice, not chance, that determines your destiny.

Indeed, when it comes to determining your family's destiny, particularly your child's destiny, you

would want to make the right choices so that nothing is left to chance.

However it is your decision today that is going to ensure that your family's future turns out to be

exactly as you had planned.

Your children's needs could be spread over a fairly long time and hence you need to ensure that

their long term needs are adequately provided for through regular savings. To ensure that your

best laid plans for your child never go away, you need to plan in a way that the regular savings

continue as planned besides taking care of your short term requirements.

Presenting Met Magic! A Unit Linked (Non-Medical, Regular Premium) Life Insurance

Plan brought to you by MetLife.

Met Magic is a life insurance plan with which you can secure your child's future. A flexible plan,

Met Magic provides the benefit of Insurance protection to your family, particularly your child,

even when you are not around. What's more - buying this plan is extremely simple and doesn't

require you to undergo any medical examination*.

Ensuring the security of your family, particularly your child, was never so simple.

KEY BENEFITS OF MET MAGIC

The Magic of protection for your child

Payout of the Sum Assured is made on death of the Person Insured to meet all immediate

financial obligations subject to policy being in force.

Benefit of regular payment into the fund is continued on behalf of the Person Insured,

even while the Person Insured is no longer there to ensure that the best laid plans for the

child don't just remain "plans".

Availability of four coverage terms to choose from -10 years, 15 years, 20 years & 25

years. Choose the Coverage period that matches your child's long term financial

milestones.

The Magic of wealth creation

Flexibility to choose from 5 market-linked funds for investments to potentially grow your

wealth over the long-term.

Guaranteed Loyalty Additions are paid into the fund in form of units in equal installments

from the 6th year till the end of the term for you to maximize wealth for your child. Refer

to the Guaranteed Loyalty Additions section for more details.

You can sign up for this plan for as low as Rs. 12,000 per annum.

The Magic of simplicity

Met Magic is extremely simple to buy and doesn't require any 1 medical examination at

all!! All you need to do is sign a simple application form.

PLAN AT A GLANCE

Minimum Age*

at entry of the Person Insured

18 years

Maximum Age*

at entry of the Person Insured

55 years

Maximum Age*

at maturity of the Person Insured

70 years

Policy Terms available 10/15/20/25 years

Sum Assured 5 times of Annualized Premium

Minimum Annualised Premium Rs. 12,000 Per Annum

Maximum Annualised Premium Rs. 1,00,000 Per Annum

* Age last birthday

4 simple steps to own your plan and ensure that you create Magic in your lives and keep

your family financially secure even in your absence.

Step 1: Choose your financial planning horizon by choosing from the four available coverage

terms of 10 years, 15 years, 20 years and 25 years.

Step 2: Decide the amount of premium that you would want to save regularly for the coverage

term.

Step 3: Choose the Unit-Linked funds that you want your premiums to be invested in. You have

the choice of 5 different market-linked funds.

Step 4: Just fill in the Simple Application Form, and get ready to enjoy the unmatched

benefits of Met Magic.

BENEFITS IN DETAIL

Maturity Benefit

On maturity the Fund Value in the Unit Account is paid. The maturity benefit is payable either

(i) As a lump sum or

(ii) Over a period of 5 years as part of the settlement option

The unique feature of this policy is that, Guaranteed Loyalty Additions are paid into the fund in

form of units in equal installments from the 6th year till the end of the term provided:

- All Regular Premiums due till the due date of each loyalty addition have been paid and the

policy is in force.

- Death claim has not been paid prior to the due date of loyalty additions.

The schedule of credit of Guaranteed Loyalty Additions varies in accordance with the Coverage

Term chosen and is shown below.

Guaranteed Loyalty Addition as a % of First Year Annualized Premium

Time of Addition Policy Term (in years)

10 15 20 25

6th year onwards till maturity 12.40% 7.40% 6.00% 4.50%

For the purpose of Guaranteed Loyalty Additions, only the First Year Annualized Regular

Premiums paid shall be considered. Top-Up Premiums are not eligible for Loyalty Additions.

Partial Withdrawal benefit

The plan offers partial withdrawal by the Person Insured or beneficiary (who is a major),

provided the person insured is not alive, after the first 5 policy years up to the following limits:

- Up to 10% of the Fund Value from the beginning of the 6th policy

year.

- Up to 25% of the fund value during the last three policy years.

All partial withdrawals shall first be made from the Top-Up Premium Account, if any and if

eligible, and when that is exhausted, then the balance amount shall be withdrawn from the

Regular Premium Account, if any and if eligible. However withdrawal from the Top-Up

Premium Account will be allowed only after completion of 3 years from the payment of each

such Top-Up Premium.

The minimum amount for partial withdrawal is Rs.5,000, which is subject to revision from time

to time.

The first four partial withdrawals in every policy year are free of charge. Further partial

withdrawals have a charge of Rs.250, which is recovered by cancellation of units.

The Partial Withdrawals are allowed provided the policy is in force.

Death Benefit

Upon Death of the Parent (Person Insured)

In the unfortunate event of death of the Person Insured during the term of the policy, the

beneficiary will be paid the Sum Assured.

In addition, the plan will continue and add all future premiums, that would otherwise have been

accumulated had the Person Insured been alive, into the fund on an annual basis as and when

each such regular premium falls due.

This facility will be provided from the first policy anniversary following the date of notification

of death and will include all regular premiums due from the date of death. The applicable amount

will be credited into various funds for creation of units in the same proportion as was prevailing

prior to the date of intimation of the claim.

The policy shall continue to be in-force, with future premiums waived, till the date of maturity or

the date of notification of the death of the Beneficiary, whichever is earlier.

Upon Death of the Beneficiary

In case of an unfortunate death of the Beneficiary, the Person Insured can choose from any one

of the options mentioned below.

- To continue the policy on the original terms by substituting another Person as a Beneficiary.

- To surrender the Policy and take the surrender benefit.

The Policy (other than upon surrender) will be allowed to continue on the original terms basis

without any alteration of term, Sum Assured, Premium etc.

If the Person Insured pre-deceases the Beneficiary, and subsequently if the Beneficiary dies, the

policy will be closed and the available fund value would be payable to the legal heirs.

Surrender Benefit

No surrender value is payable during the first three years of the policy. After three policy years,

and provided at least one year's annualized premium has been paid, the Surrender Value payable

on surrender is equal to the Fund Value in the Unit Account less the surrender penalty as

described in the policy charges section. Surrender of the policy is possible only when Person

Insured is alive. Policy cannot be surrendered after the death of the Person Insured except:

as per Auto Foreclosure clause as given below; or

by the Beneficiary after attaining the age of 18 years last birthday.

UNIT-LINKED FUND OPTIONS FOR INVESTMNTS OF YOUR PREMIUM

You have the choice of five Unit-Linked Funds available to you. You can choose to invest your

premiums in these Unit-Linked Funds in any proportion aggregating to a total of 100%.

However, investment in any of the chosen Unit-Linked Funds should have a minimum allocation

of twenty percent (20%).

Following are the five Unit-Linked Funds offered with Met Magic:

Unit-Linked Fund Asset Allocation Unit-Linked Fund Risk Profile

Objective

Multiplier -80%-100% in Listed

Equities

-0%-40% in Money

Market Investments

To generate long term

capital appreciation

by investing in

diversified equities

This fund will exhibit

very high risk and

returns and will be

prone to market

fluctuations

Virtue -60%-100% in Listed

Equities

-0%-40% in Money

Market Investments

To generate long term

capital appreciation

by investing in

diversified equities of

companies promoting

healthy lifestyle and

enhancing quality of

life

This fund will have

very high risk and

returns profile and

will be prone to

market fluctuations

Balancer -35%-65% in Listed

Equities

-0%-60% in Long

Term Bonds

-0%-35% in Short

Term Bonds

-0%-40% in Money

Market Investments

-10%-60% in Govt

Securities (including

Government Guaranteed

Securities)

-0%-60% in

Infrastructure/Social

Sector Securities

To generate capital

appreciation and

current income,

through a judicious

mix of investments in

equities and fixed

income securities

High risk and returns

with a fair exposure to

equities

Protector -25%-90% in Govt

Securities

To earn regular

income by investing

Low risk and is

designed for regular

-10%-60% in Long-

Term Bonds

-0%-45%in Short-Term

Bonds

-0%-40% in Money

Market Investments

-0%-60% in

Infrastructure/Social

Sector Securities

in high quality fixed

income securities

income

Preserver -80%-100% in Govt

Securities

-0%-40% in Money

Market Investments

To generate income at

a level consistent with

preservation of

capital, through

investments in

securities issued or

guaranteed by Central

and State Govt.s

Very low risk

OTHER FLEXIBLE BENEFITS

Top - Up Premiums

You have the facility of paying any additional amount periodically by indicating the same as

Top-Up Premium. Top-Up premium is accepted only to the extent of 25% of the total regular

premiums paid to date. The total Top-Up premium at any time should not exceed 25% of all the

regular premiums paid till that time. Minimum Top-Up Premium is Rs.1,000.

Top-up premiums are payable only if the basic regular premiums are paid up to date. Payment of

Top-Up Premium does not increase the Sum Assured. No Top-Up Premiums would be allowed

after the death of the Person Insured.

Switching Option

With this option you can switch between the investment funds at any point in time (provided the

policy is in full force) depending on your financial priorities and investment decision. In any

policy year, 12 free switches are free of charge. The minimum amount of switch is Rs.5,000/-.

Premium Re-direction

All premiums (including Top-Up Premium) paid could be allocated in any proportion between

the various Unit-Linked Funds. Such allocation needs to be chosen at the time of the proposal

and also could be altered later. However the proportion for any chosen fund should be at least

20% of the regular premium. You would have the option to change the premium allocation

proportions twice every policy year free of charge. Subsequent changes in a policy year would be

considered as an alteration and would be charged accordingly.

Settlement Option

On maturity, the Person Insured will have the choice to opt for a Settlement Option wherein all

or part of Maturity Benefit shall be paid out as structured payouts. During the Settlement Option

period, all investment risk shall continue to be borne by the Person Insured.

The Person Insured will state the proportion of his Maturity Benefit that he/she wants to have as

structured payouts through the Settlement Option.

The Person Insured will select the following by a written request at least 7 days prior to the

maturity date:

(i) Payout Term: As specified by the regulations / guidelines. Currently, any duration between 1

year to 5 years.

(ii) Payout Frequency: Yearly, Half-Yearly, Quarterly and Monthly.

(iii) Payout Mode: Cheque, Direct Credit / ECS (must for Quarterly / Monthly mode).

(iv) Payout Option: a) Fixed units per payout b) Fixed amount per payout.

Under Settlement Option, the following conditions shall be applicable:

– The minimum proportion for opting for Settlement Option is 25% of the Maturity Benefit.

– All the payments shall be made in arrears.

– If at any time during the Settlement Option period, the Fund Value falls below the regular

premium paid in the first policy year then the Fund Value shall be paid to the Person Insured

immediately and the policy shall terminate.

– The Settlement Option will be available only if all the due premiums are paid.

– Partial Withdrawals and Unit switches will not be permitted during the Payout Term.

– No charges except the Fund Management Charge shall be levied during the Payout Term.

– The Person Insured cannot opt for the Settlement Option after the Maturity Date.

– On death of the Person Insured during the Payout Term, only Fund Value as at the date of

notification of death shall become payable as a lump sum and the policy shall terminate.

POLICY CHARGES

(a) Premium Allocation Charge

The Premium Allocation charge as a %age of Regular Premium is as given in the following

table:

Year Year 1 & 2 Year 3 onwards

Coverage Term 10 years 31% 0%

Coverage Term 15 years 37% 0%

Coverage Term 20 & 25 years 45% 0%

The allocation charge for Top-Up premium is 2.5%.

The Premium Allocation Charge will be deducted from each Regular/Top-Up Premium and the

balance Net Premium will be used to buy units in the appropriate fund.

(b) Policy Administration Charge

The charges as below will be cut out at the beginning of each month by cancellation of an

appropriate number of units using the relevant Net Asset Value of these units.

Policy Related Annualized Charges (in Rs.)

10 years 15 years 20 years 25 years

Premium

Range / Term

First Year

(At inception one

time)

12,000 to

24,999

2400 1320 1320 1320

25,000 to

49,999

2400 1920 1920 1920

50,000 to

74,999

3000 2520 2520 2520

75,000 to

100,000

4800 3120 3120 3120

First Year onwards

(Every month apart

from one time

charge)

12,000 to

24,999

100 90 80 70

25,000 to

49,999

150 140 130 120

50,000 to

74,999

300 190 180 170

75,000 to

100,000

400 240 230 220

The Company reserves the right to increase this charge with prior clearance from the Insurance

Regulatory and Development Authority.

(c) Mortality Charge

Mortality charges will be deducted at the beginning of each month by cancellation of an

appropriate number of units at the relevant Net Asset Value.

The calculation method will be as follows: (Sum At Risk/1000) X Mortality Charges

Sum at Risk is defined as Sum Assured plus Sum of all future outstanding premiums. Sample

monthly Mortality Charge per 1000 sum at risk is as below:

Age / Gender 20 years 30 years 40 years

Male 0.152417 0.175583 0.313583

Female 0.141000 0.175167 0.261500

(d) Fund Management Charge

The following fund management charges (expressed as a % of Fund Value of Assets underlying

the Unit Account) will be levied.

Fund Option Current Maximum

Protector 1.25% p.a. 2.50% p.a.

Preserver 1.25% p.a. 2.50% p.a.

Balancer 1.50% p.a. 2.50% p.a.

Virtue 1.75% p.a. 2.50% p.a.

Multiplier 1.75% p.a. 2.50% p.a.

These charges are adjusted while calculating the Net Asset Value of the Unit Linked Funds at

each valuation date.

(e) Surrender Charge

The surrender charge would be deducted from the Fund Value before payment of the same to the

Person Insured.

Number of years' premium paid Surrender Charge as a % of 1st year's premium

If less than 1 year's premium is paid 100%

If exactly 1 year's premium is paid 90%

If more than 1 year's but up to 2 years'

premium is paid

50%

If more than 2 years' but up to 3 years'

premium is paid

25%

If more than 3 years' but up to 4 years'

premium is paid

10%

If more than 4 years' premium is paid Nil

(f) Switching Charge

The first twelve switches between the Unit-Linked Funds in a policy year will be free of any

charge. Each further switch between the funds in a policy year would be charged at Rs. 250. The

switching charges will be deducted from the amount switched and the balance amount will be

used to buy units in the new Unit Linked Fund.

However the Company reserves the right to increase this charge up to a maximum of Rs. 750

with prior clearance from the Insurance Regulatory and Development Authority.

(g) Partial withdrawal charge

The first four partial withdrawals from the Unit-Linked Funds in a policy year will be free of any

charge. Each further partial withdrawal from the funds in a policy year would be charged at Rs.

250.

The partial withdrawal charges will be deducted from the amount withdrawn. The Company

reserves the right to increase this charge up to a maximum of Rs. 750 with prior clearance from

the Insurance Regulatory and Development Authority.

(h) Miscellaneous Charges

The Company has the option to charge Rs. 250 for alterations like Reinstatement of the Policy.

However the Company reserves the right to increase this charge up to a maximum of Rs. 750

with prior clearance from the Insurance Regulatory and Development Authority. Service Tax

Charges as notified by the Government from time to time will also be deducted in addition to

above charges.

OTHER PROVISIONS AND CONDITIONS

Free Look Cancellation

You have a period of 15 days from the date of receipt of the Policy document to review the terms

and conditions of this Policy. If you have any objections to any of the terms and conditions, you

have the option to return the Policy stating the reasons for the objections and you shall be

refunded an amount equal to non-allocated premiums plus charges levied through cancellation of

units plus fund value at the date of cancellation subject to deduction of expenses towards medical

examination, stamp duty and proportionate risk premium for the period of cover.

Discontinuance of Premium:

(A) With in the first three policy years

If any regular premium due within the first three policy, remains unpaid even after the grace

period of 30 days from the due date of premium for yearly, half-yearly and quarterly mode of

premium payments, and 15 days from the due date of monthly premium, the benefits of the Sum

Assured and the future premium protection benefits to the policy will cease to exist and the

policy will lapse with effect from the due date of first unpaid premium.

You can apply for reinstatement of the lapsed policy within two years from the date of the first

unpaid premium, subject to the conditions mentioned in the policy document. Once the policy is

revived, all the future mortality charges will be deducted. If the contract is not reinstated within

the reinstatement period, the contract shall terminate and the Fund Value net of Surrender

Charge shall be payable on the expiry of the reinstatement period or end of third policy

anniversary, whichever is later.

In case of the death of the Person Insured during the time allowed for reinstatement of a lapsed

policy, the Fund Value will be paid to the nominee. The policy will terminate on the date of

notification of death of the Person Insured. Only the policy administration charges and the fund

management charge shall continue to be deducted from the unit account.

The Fund Value shall be subject to the performance of the underlying Unit-Linked Funds and

applicable Fund Management Charges.

(B) After at least three policy years

If all the due premiums have been paid for at least first three consecutive years and subsequent

premiums are not paid, then the policy shall remain in force for full risk cover on the life of the

Person Insured for a period of two years from the due date of first unpaid premium, during which

period the policy can be reinstated. If the policy is not reinstated within that period, then the

policy shall be terminated by paying the Surrender Value to the Person Insured.

During the reinstatement period, the Person Insured shall have following options (apart from the

option to reinstate the policy):

i. Option to surrender the policy:

On the exercise of such an option, the Surrender Value, if any and as defined above, shall be

payable and the contract shall terminate.

ii. Option to continue the policy without paying further premium:

On the exercise of such an option, the policy will continue with full Sum Assured till the time

the Surrender Value of units pertaining to regular premium reaches an amount equivalent to

one full year's premium and thereafter the policy shall be terminated with advance notice by

paying the Surrender Value to the Person Insured.

Reinstatement of the policy after expiry of grace period will be subject to underwriting

requirements.

Auto foreclosure

At any point of time if the premium is suspended and if the Surrender Value in the Unit Account

falls to an amount equal to the sum of one annualized regular premium and the applicable

surrender charges , the policy would be terminated by paying the surrender value, if any, as on

that date.

The contract shall also be terminated once all the contractual obligations have been discharged.

Suicide clause

In the event the Person Insured commit Suicide, whether sane or insane at that time, within the

first policy year from the effective date of Policy or the date of the last reinstatement whichever

is later, we shall not be liable to pay the Sum Assured and future premium protection benefit

except refunding the Fund Value in the Unit Account, if any.

About Taxes

Tax benefits under this plan are available as per the provisions and conditions of the Income Tax

Act 1961 and are subject to any changes made in the tax laws in future. Please consult your tax

advisor for advice on the availability of tax benefits for the premiums paid and proceeds (if any)

received under the policy.

Please note that Service Tax shall be chargeable at the prevailing rate on that part of premium as

prescribed under the prevailing tax regulations. Currently Service Tax is charged on the Cost of

Insurance, Fund Management Charges, Policy Administration Charges, and Premium Allocation

Charges. Service Tax would be deducted by cancellation of applicable units from the policy

account. The calculation of the policy proceeds will be affected to that extent. MetLife reserves

the right to deduct units/collect separately, any other taxes as may be applicable and imposed by

the Tax Authorities from time to time.

Risks Inherent in the Unit Linked Funds

Due to the nature of the Unit Linked Funds, the Company does not guarantee the price of the

Units of any of the Unit Linked Funds offered by it.

Unit Linked Life Insurance products are different from the traditional insurance products and are

subject to risk factors. The Insured (and the Policyholder, if different) is aware that the

investment in units is subject (amongst others) to the following risks:

The investments in the Units are subject to market and other risks and there can be no

guarantee that the objectives of any of the Unit Linked Funds will be achieved.

The premium paid in Unit Linked Life Insurance policies are subject to investment risks

associated with capital markets. The Fund Value of each of the Unit Linked Fund can go

up or down depending on the factors & forces affecting the financial markets from time

to time including changes in the general level of interest rates and the insured is

responsible for his/her decisions.

The past performance of the Unit Linked Fund(s) of the Company is not necessarily

indicative of the future performance of any of these Unit Linked Funds.

The Unit Linked Funds do not offer a guaranteed or assured return.

The name of the Product does not in any way indicate the quality of the product, its future

prospects or returns.

The names of the Unit Linked Funds and their objectives do not in any manner indicate

the quality of the fund, their future prospects or returns.

All benefits payable under the policy are subject to the tax laws and other

legislations/regulations as they exist from time to time.

Please know the associated risks from the financial advisor or the intermediary.

Please refer to the policy document for further details and risk factor.

STATUTORY WARNING

Prohibition of Rebates- Section 41 of the Insurance Act, 1938 states

(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any

person to take out or renew or continue an insurance in respect of any kind of risk relating to

lives or property in India, any rebate of the whole or part of the commission payable or any

rebate of the premium shown on the policy, nor shall any person taking out or renewing or

continuing a policy accept any rebate, except such rebate as may be allowed in accordance with

the published prospectuses or tables of the insurer.

(2) Any Person making default in complying with the provisions of this section shall be

punishable with fine which may extend to five hundred rupees.

Non-Disclosure - Section 45 of the Insurance Act, 1938 states:

“No policy of life insurance effected before the commencement of this Act shall after the expiry

of two years from the date of commencement of this Act and no policy of life insurance effected

after the coming into force of this Act shall after the expiry of two years from the date on which

it was effected, be called in question by an insurer on the ground that a statement made in the

proposal for insurance or in any report of a medical officer, or referee, or friend of the Person

Insured, or in any other document leading to the issue of the policy, was inaccurate or false,

unless the insurer shows that such a statement was on material matter or suppressed facts which

it was material to disclose and that it was fraudulently made by the policy owner and that the

owner knew at the time of making it that the statement was false or that it suppressed facts which

it was material to disclose:

Provided that nothing in this section shall prevent the insurer from calling for proof of age at any

time if he is entitled to do so, and no policy shall be deemed to be called in question merely

because the terms of the policy are adjusted on subsequent proof that the age of the Person

Insured was incorrectly stated in the proposal.”

This product brochure is only indicative of terms, conditions, warranties and exceptions

contained in the insurance policy.

Investments are subject to market risks.

Refer to the policy document for risk factors and further details.

GLOSSARY

Regular Premium: is the premium payable by you according to the mode of payment

chosen by you and as specified in the Schedule.

Unit-Linked Funds: These are the funds available to you, to invest your premiums.

Net Asset Value: The Net Asset Value would be calculated as: (Market value of

investments +/- Expenses incurred + Current Assets + Accrued Income - Current

Liabilities and Provisions Fund Management Charge) / (Number of outstanding units

under the relevant Unit Linked Fund) The Net Asset Value would be rounded up to four

decimal places.

Sum Assured: This is a multiple of your annual regular premium. This is the amount that

provides you the life insurance benefit.

Fund Value: “Fund Value” is the value of aggregate number of outstanding units on any

day in each Unit Linked Fund allocated under this Policy multiplied by their respective

Net Asset Values applicable as on that day.

Policy Year: is measured from the Effective Date of the Policy and is a period of twelve

consecutive calendar months.

BIBLIOGRAPHY

WEBSITES:

http://www.axisbank.com

http://www.metlife.co.in

http://www.emeraldinsight.com

BROCHURE: – “Met Magic” – MetLife India Insurance Co. Ltd.