LIC’s Jeevan Utsav – does it really provide 10% returns?

On November 29, 2023, LIC introduced a new plan, LIC’s Jeevan Utsav (Plan No. 871) – a guaranteed whole life income plan. This plan is currently being heavily advertised. It boasts all the terms that you may find attractive: regular income, guaranteed, lifelong benefits, and, most importantly, the intriguing ‘10% per year!’. 

So, is this finally the policy that could meet your income needs with decent returns, or is it just old wine in a new bottle? Read on to find out.

LIC's Jeevan Utsav

About the policy

LIC’s Jeevan Utsav is a non-participating, non-linked, whole life insurance plan that provides guaranteed income. This means: 

  • its returns are not affected by either market performance or LIC’s performance. That is, you do not ‘participate’ in the insurer’s profits, but receive a predetermined payout
  • it does not mature and ends either upon surrendering the policy or upon the death of the policyholder. 

The table below captures the basics of this policy:

The age of entry for LIC’s Jeevan Utsav ranges from 90 days to 65 years. However, the actual minimum and maximum age may vary based on the chosen premium paying term. For example, the maximum age at which the last premium can be paid is set at 75, which would make the entry age a lot younger based on the policy period you choose - if you want a 15-year premium payment term, for example, the oldest age is 60 years. For more details, refer to the brochure, page 2.

The minimum sum assured in this policy is Rs. 5 lakh, and there is no maximum limit. However, the approval of the sum assured will be subject to the underwriting policy.

In the event of the insured's death, the highest of the following three will be payable:

  1. Basic sum assured plus guaranteed additions
  2. 7 times the annualised premium plus guaranteed additions
  3. 105% of the total premium paid

Do note that the premiums mentioned above exclude taxes, loadings, and the cost of any riders attached to the policy, if applicable. 

To give an idea of how much the death benefit may be, let’s take an illustration provided by LIC in the brochure. For a 35-year-old buying a policy with a sum assured of Rs. 10 lakh and a premium paying term of 10 years, the annual premium will be Rs. 1.11 lakh + GST. The applicable death benefits start at Rs. 10.4 lakh in year 1 and reach Rs. 14 lakh by year 10, remaining at Rs. 14 lakh thereafter.

After completing the premium payments, income benefits commence after a specified number of years. This duration between the completion of premium payment and the start of income benefits ranges from 3 to 6 years. Shorter premium payment plans have the biggest such duration before the commencement of income benefits. (For specific details on the exact year of the start of income benefits for each premium payment period, please refer to the brochure, page 4.)

LIC Jeevan Utsav  policy provides two options for income benefits. You can choose one of the options and there are no provisions for switching across options once policy is purchased.

  • Option 1 - Regular Income Benefit: A fixed amount of 10% of the sum assured annually and paid every year for life. This is not the return on investment - remember that what you are paying is the premium for a certain period of time, after which there is a no-premium-no-income period, and only then does your income start. Returns need to take into consideration all of these, which we will discuss separately.  The regular income benefit is simply the fixed sum that you will receive each year and this amount does not change at any point. 
  • Option 2 - Flexi Income Benefit: Similar to Option 1, you can claim for 10% of the sum assured every year. However, under the flexi-income option, you can choose not to withdraw it, and LIC will provide a 5.5% annual compounding return for the income that was not claimed (Hint: When a policy mentions something like this, assume the return it generates might be close to this number). At any point, policyholders can request to withdraw up to 75% of the accumulated balance, which consists of income deferred and the compounded returns it earned. Only one withdrawal per year is allowed.

As this is a whole life plan, it does not mature and ends either upon surrendering the policy or upon the death of the policyholder. Maturity benefits are not applicable for this plan.

The policy allows for surrender after completing two full years of premium payment. The surrender value payable depends on the total premium paid and guaranteed additions accumulated up to the surrender date, as detailed in the brochure on page 11

In a sample illustration - for a policy with a premium paying term of 10 years for a 35-year-old, the surrender value starts from 30% of the total premium paid at year 2, reaching 50% at year 5, and 104% at year 11. It's crucial to note that this is merely the arithmetic sum of the premium paid, without accounting for returns forgone. A more in-depth analysis of the surrender value will be explored in detail in the 'What Return LIC’s Jeevan Utsav Generates' section.

The policy offers add-ons (riders) such as accidental death and disability insurance, term assurance, critical insurance, and premium waiver benefits. If the proposer is not the policyholder and opts for premium waiver benefits, in the event of the proposer's death before the end of the premium payment period, the policy will continue without further payments. However, as we have always maintained, we prefer using standalone policies for term insurance, critical insurance, etc. The policy also offers a loan facility, with the maximum loan permissible 50% to 75% of surrender value.

What return LIC’s Jeevan Utsav  generates

The challenge in calculating returns for traditional insurance policies lies in their attempt to complicate it for the average investor, making it challenging to understand the actual returns, both in numbers and narrative. LIC’s Jeevan Utsav is no exception. 

The 'Guaranteed 10% return on sum assured for life' is enough to pique the interest of fixed-income investors in the policy. Additionally, it mentions 'guaranteed additions after each premium-paying year,' creating the impression that, on top of what you pay, there is an extra payment generating returns; however this is actually the addition to applicable death benefits per premium paying year and not directly contributing to returns of the policy.

Therefore, to calculate the actual returns, you need to disregard these elements and focus solely on the payments you make, the credits you receive, and the timelines involved.

To credit LIC where it's due, they provide an illustration table in the brochure. Once you understand the actual cash flows to and from the policy, we can simply enter this data into a spreadsheet and calculate XIRR.

We've performed this analysis for both of the income options in the policy.

We ran the returns calculation with the following, as per the illustration provided in the brochure.

  • Age at policy purchase: 35 years
  • Annual premium before tax: Rs 1,11,050. Including GST, the total premium paid over 10 years will be Rs. 11.38 lakh. 
  • Sum assured: Rs 10 lakh
  • Premium payment term: 10 years
  • Regular income commencement: Year 13

Here, the regular income benefit will amount to Rs 100,000 per year, starting from year 13. Now, let’s assume that the policyholder’s demise is at age 100 - which makes the period of receiving income a solid 65 years. The death benefit (in addition to the 65 years’ regular income) will be Rs. 14 lakh.

The XIRR of this payment and income inflow works out to 5.91%. For more details, please refer to the attached spreadsheet. Is this good or bad? We’ll get to it!

We ran the returns calculation assuming the following, going by the illustration provided in the brochure. 

  • Age at policy purchase: 35 years
  • Annual premium before tax: Rs 86,850. Including GST, the total premium paid over 12 years will be Rs. 10.68 lakh. 
  • Sum assured: Rs 10 lakh
  • Premium payment term: 12 years
  • Regular income commencement: Year 15

Starting from year 15, the policyholder will be eligible for Rs. 1 lakh income per year. Here we will look at the case where the policyholder deferres all income and does a single withdrawal of 75% of accumulated corpus and decides to leave the rest for the nominee as inheritance. Here also we expect the life expectancy to be 100 years. See the table below:

The XIRR for this option works out to be slightly less than returns in Option 1, but is understandable given that Option 1 has you receiving income much earlier on, and the deferred income in the flexi-income plan is being compounded at 5.5% 

The brochure mentions two rebates (i.e., discount on premium paid):

  1. Rebate for high sum assured: Unfortunately, neither the brochure nor the policy document provides details on rebates for a high sum assured. 
  2. Rebate for online sale: the brochure states, 'For proposal to be completed under online sale without any assistance of Agents / intermediary shall be eligible for a rebate of 10% on tabular premium'. 

However, for point 2 above, 

The benefits illustration provided in the brochure, which we have used for calculating returns, does not consider any rebate. Should we factor this into the calculation, assuming a 10% discount for online purchases, the returns of the options stand as follows:

  • Option 1: 6.39%
  • Option 2: 5.86%

This calculation is also available in the spreadsheet attached.

As LIC’s Jeevan Utsav is a whole life policy with no maturity, the only option for investors to close the policy is through surrender. However, in line with traditional endowment policies, the terms for surrendering this policy, especially in the initial years, are not favourable.

An intriguing point to note is that despite the emphasis on guarantees, the surrender value of this policy is not entirely guaranteed. The brochure specifies that the surrender value will be the higher of:

  • the 'guaranteed minimum surrender value' or 
  • 'non-guaranteed special surrender value,' with the special surrender value being reviewable and determined by LIC from time to time. 

In the sample illustration given by LIC, from year 5 onwards, the applicable surrender value is the special surrender value. We considered this special surrender value and recalculated returns for Option 1 and Option 2 assuming that the policy is surrendered after a number of years. 

The XIRR stands as follows:

Refer to the provided spreadsheet for a detailed view of how returns vary at various durations of surrendering.

Should you buy this policy?

So, the question is how LIC Jeevan Utsav should be viewed. There is the life insurance aspect and the regular income aspect.

Consider the life cover first. For the premium paid, the life cover is low. A pure term insurance’s life could be 30 to 80 times the life cover offered by LIC’s Jeevan Utsav for the same premium paid. Therefore, opting for LIC Jeevan Utsav for the purpose of life insurance is wholly unsuitable. There are far better options available. 

That leaves the returns that this policy can deliver, and therefore assessment needs to be done on the investment aspect alone. The key attractions of guaranteed income plans lie in their assurance of payment and tax-free status. The key in LIC Jeevan Utsav is its seemingly decent return, going by the illustration calculations above.

Good, consistent debt funds generate long term returns of about 7% to 8% (current long-term government bonds yields are also in a similar range). Comparatively, an XIRR of 6% or more for a reasonable duration could have been competitive for those in higher tax brackets. If you include rebates, LIC Jeevan Utsav’s XIRR is at that level.

However, there are a few points to note here.

One, lock-ins for LIC Jeevan Utsav are long. Income generation begins only a few years after premium is paid. Given this length of years, during the accumulation (premium-paying) phase, the same amount can be invested in far more liquid, more transparent, better-returning products. 

For example, average 5-year returns of aggressive hybrid funds have been about 11%. Let’s assume a more sedate 9% long-term return and the tax impact. Now, consider the parameters under Option 2 above (12 year premium payment with income from year 15), where the annual income is Rs 1 lakh. Should the premium be invested at a 9% return, the corpus generated at end of year 15 would be about Rs 21.9 lakh (post tax). 

Other long lock-in products such as NPS would also serve to accumulate greater wealth and invest at a later date into income-generating products, translating into higher investment returns.

Also note that the XIRR calculated above for LIC Jeevan Utsav is a single, good, scenario where income is generated for 65 years. For a given premium and entry age. XIRR can drastically differ when the generation is over a different period or premiums change. It’s hard to peg the real return you may earn.

If the tax benefits have you interested, note that the government has been closing tax loopholes that used to benefit these types of policies. Currently, a guaranteed income plan can be tax-free only if both of the following criteria are met:

  1. Annual premium should be less than Rs. 5 lakh.
  2. Annual premium should be less than 10% of the sum assured.

LIC’s Jeevan Utsav’s premium paying term varies from 5 years to 16 years. A quick glance at the sample premiums indicates that for the annual premium to be less than 10% of the sum assured, the premium paying term should be 12 years or longer. Therefore, in this case, the income will start at year 15 or later (please refer to the table given in the brochure, page 4).

The better alternatives available to getting life cover and better returns on investment along with the negative to extremely low realised returns upon surrendering, lead us to the conclusion that this policy may not be worth considering despite its guarantees. The typical inflexibility associated with such policies is a further detractor. Our recommendation, therefore, is to give this policy a pass.

You can use the excel sheet provided to experiment with premiums & terms to gauge the impact on potential XIRR. Do note that these are illustrative only and actual returns will depend on the premiums paid and other policy terms.

LIC’s Jeevan Utsav - Brochure

LIC’s Jeevan Utsav - Policy Document

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9 thoughts on “LIC’s Jeevan Utsav – does it really provide 10% returns?”

  1. Bipin, Thank you for this article ! Eye opener !
    Having said that, LIC has its unique strengths. Trust, very wide Offline network, many access points, Online presence as well. Wide range of products. Good service experience often better than Private insurers. Staggered Premium payment options from Salary deduction to Payment across Branches, Time periods, Revival, etc
    Too often, people miss out on the ‘discipline’ of adhering to SIPs along with a Term plan. For those such, some of their products do help. If it is not too much of an ‘Ask’ , then do suggest an LIC product which balances across Life Risk coverage with decent return, among their own products
    Meanwhile, Thank you once again !

  2. More than a decade ago, I was trapped by a ‘relative’ into ‘investing’ in one of the traditional policies. I made a grand sub 3% return after paying premiums for 10 years. I run away from him and all such products these days. Wish I knew how to calculate XIRR back then.

  3. Kanchan Rijhwani

    Are all LIC policies terrible or have you done an analysis of some scheme which is worth considering? Can you share the link incase there is one please? Thank you,

    1. Bipin Ramachandran

      Hello, we haven’t reviewed all policies of LIC. Generally, we select policies for review based on their popularity / investor interest. We believe the issue lies in the type of policies rather than the insurer. A traditional insurance plus investment plan (endowment, money back, guaranteed income) collects premiums and channels them into mortality costs to offer death benefits, fees, and the investment component. The investment mostly occurs in top-rated debt instruments. To guarantee payouts, the returns offered by this policy will need to be [the expected returns from the debt instruments over the policy term] minus [fees and mortality costs].

      Looking at it this way, for an investor sticking with this policy for the long term, they’re getting approximately 1% to 2% less than top-rated debt returns.

      Three factors work against this arrangement:

      1) For an investor with more than a decade of timeframe, top-rated debt may not be the best instrument from a risk-reward perspective.
      2) Fees significantly reduce the return component of a debt-based instrument (e.g., 2% fees on an 8% return instrument mean 25% of the return generated is gone as fees).
      3) Since the policy doesn’t provide any meaningful death benefit, it will be compared against investment products, where it will pale in comparison.

      Despite these disadvantages, the tax treatment used to benefit some of these policies; however, as mentioned in the article, this is becoming more and more challenging.

      Other downsides, common among this type of policy rather than the insurer, include:

      1) Punitive exit clauses.
      2) Lack of transparency: They don’t have to declare fees/costs, a typical policy mentions benefits as linear payments and credits. This does not account for the time value of money, and the return looks better than what it actually generates (e.g. XIRR).

  4. Excellent analysis….. I never came across any policy from LIC (including its term plans – other players have better cost) which are useful for normal people… its just the distribution might that gives such huge market share to LIC…. May be if you have come across any policy which is good, please share!!

    1. Bipin Ramachandran

      Thank you!

      I feel the problem lies in the type of LIC policies we come across. Explained this in detail in another reply.

  5. prakash.rajagopalan

    Thanks for the nice analysis. Couple of questions
    1. What happens in the case of death of policy holder during the payout period, does the annuity component switch to the nominee? In that sense is this similar to HDFC Sanchay in payout terms?
    2. It appears from some reading that the SA for some premium/term combinations are lesser than the 10X premium cutoff for tax exemption? is that fair and which combinations to avoid would be good advice to share as well please?

    1. Bipin Ramachandran

      Thank you! Regarding the questions:

      1) No, after paying death benefits, the policy will be closed.
      2) Yes, for some combinations, the sum assured is less than 10X annual premium. This will depend on a number of factors. Every insurance + investment product’s premium consists of two elements, mortality premium and investment component (and fees of course). The lower the component out of total premium goes towards mortality premium, the lower the death benefits will be. Also the lower the number of premium paying years, the lower the death benefits as a multiple of annual premium. There are no regulations mandating a policy to provide at least 10X cover of annual premium paid. It just makes the policy not eligible for certain tax exemptions. You can check the brochure, page 7 for indicative premiums; do note that actual premium will depend on age of entry, any loadings applicable etc.

      1. prakash.rajagopalan

        Thank you! The whole return benefit calculation goes for a toss if the tax benefits are not available. Any interested investors should watch out if the SA <10X annual premium

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  10. The subject company of its research recommendations was not a client of the RA or its directors or its employee or its associates during twelve months preceding the date of recommendation services provided.
  11. The RA or its directors or its employee or its associates has not served as an officer, director or employee of the subject company. Research Analysts has not been engaged in market making activity of the subject company.

PrimeInvestor Financial Research Pvt. Ltd., its Associates, the Research Analysts or their relatives holds ownership of 1% or more, in respect of the said issuer company(ies)? – NO

8. Termination of service and refund of fees:

The RA may terminate or suspend rendering of Research Services to the client in the following circumstances:

  1. On account of suspension/cancellation of registration of RA by SEBI. In case of suspension of certificate of registration of the RA for more than 60 (sixty) days or cancellation of the RA registration, RA shall refund the fees, on a pro rata basis for the period from the effective date of cancellation/ suspension to end of the client’s subscription period.
  2. The RA voluntarily chooses to terminate its Research Service. In the event of such termination of the Research Service, the RA shall refund the fees, on a pro rata basis for the period from the date of such termination of research service to end of the client’s subscription period.

9. Grievance redressal and dispute resolution:

Any grievance related to:

  1. nonreceipt of research report, or
  2. missing pages or inability to download the entire report, or
  3. any other deficiency in the research services provided by RA

shall be escalated promptly by the client to the person/employee designated by RA, in this behalf as under:

Name: Bhavana Acharya
Designation: Director & Compliance Officer, PrimeInvestor Financial Research Pvt Ltd
Email: [email protected]

The RA shall be responsible to resolve grievances within 7 (seven) business working days or such timelines as may be specified by SEBI under the RA Regulations.

RA shall redress grievances of the client in a timely and transparent manner. Any dispute between the RA and his client may be resolved through arbitration or through any other modes or mechanism as specified by SEBI from time to time.

If the client is not satisfied with the response of the RA, he/she can lodge his/her grievances with SEBI at scores.sebi.gov.in. Alternatively, the client may also write to any of the offices of SEBI. For any queries, feedback or assistance, please contact SEBI Office on Toll Free Helpline at 1800 22 7575 / 1800 266 7575

Details on grievances are available on the Website as follows: https://primeinvestor.in/ra-grievance/

10. Additional clauses:

Scope of the Research Service: The Research Services will be limited to providing independent research recommendation and shall not be involved in any advisory or portfolio allocation services. The Research Services are not meant to be tailor-made or customized solutions that specifically apply to each client based on his/her risk profile.

The RA never guarantees the returns on the recommendation provided. Investor shall take note that investment/trading in stocks/Index or other securities is always subject to market risk. Past performance is never a guarantee of same future results. The RA shall not be responsible for any loss to the Investors.

This service is not directed for access or use by anyone in a country, especially the USA, Canada or the European Union countries, where such use or access is unlawful or which may subject PrimeInvestor Financial Research Pvt Ltd or its affiliates to any registration or licensing requirement.

The Research Service, including recommendations, research reports, updates, and other information will be accessible through the RA’s website https://primeinvestor.in only. Such recommendations and updates will not be provided over phone calls.

Fees: Our current fee structure, the term and duration of our subscription for our Research Service, can be viewed on our website: https://primeinvestor.in/prime-pricing. Eligibility for any discounts is ascertained at the time the client subscribes. Any such discount and its tenure shall be at the discretion of the RA.

Subscription and access to content services fall under the purview of Goods and Services Tax (GST) as per the current indirect taxation policy, Government of India. Unless otherwise indicated, prices stated on our website are exclusive of applicable GST, any applicable value added tax (VAT) or other sales taxes. We are a business-to-consumer (B2C) service provider and we do not commit to provide any input tax credit on GST charged on subscription to our Research Service.

We may change the Subscription Fees and charges then in effect, or add new fees or charges which will take effect at the end of the client’s subscription period, by giving notice in advance and an opportunity to cancel renewal of the subscription.

Subscription Access & Renewal: Subscription to the Website commences immediately on the realisation of payment of the Subscription Fees. Subscriptions are set to be renewed automatically at the end of the subscription period.

Unless the client notifies us before the end of his/her subscription period, or the client cancels the auto-renewal mandate within the period specified by law, that the client does not wish to renew his/her subscription, the client’s subscription will renew for the period defined by the client’s subscription plan. We will charge the subscription using the same payment method that you previously used.

Although the client may notify to us his/her intention to his/her subscription, such notice will only take effect at the end of his/her then current subscription period, and he/she will not receive a refund other than as set out under Clause 8 in these Terms.

The client may notify us of his/her wish to cancel his/her subscription by sending an email to [email protected]. The client must provide at least 5 business days advance notice for this to be implemented.

Refunds: There can be no cancellation and refund of subscription fee paid once the subscription is active, other than as stated in Clause 8 of these Terms. If the client is entitled to a refund as specified under Clause 8 of these Terms, the RA will credit that refund to the card or other payment method used by the client to submit payment, unless it has expired - in which case the RA will contact the client to proceed with the refund. If we do issue a refund or credit due to circumstances outside the obligations specified under Clause 8, we are under no obligation to issue the same or a similar refund in the future.

General disclaimers: The recommendations made herein in the Research Services are expression of views and/or opinions and should not be deemed or construed to be advice for the purpose of purchase or sale of any security, nor a solicitation or offering on any investment/ trading opportunity on behalf of the company, AMC, insurance company, or issuer of security referred to herein.

The content and research reports generated by the RA does not constitute or is not intended to constitute an offer to buy or sell, or a solicitation to an offer to buy or sell financial products, units or securities.

The information/ opinion/ views mentioned in research reports or by the RA are not meant to serve as a professional guide to the client or recipients of this Report. The research report, recommendation, or any other content published by the RA do not assure or guarantee any minimum or fixed returns to the client or recipients of the reports/ recommendations/ content.

Use of this information is at the client’s own risk. The client must make his/ her own investment decisions based on his/her specific investment objective and financial position and using such independent advisors as he/she believes necessary. The services rendered by the RA are on a best-effort basis. All information in the content or research report of the RA is provided on an as is basis. Information is believed to be reliable but the RA does not warrant its completeness or accuracy and expressly disclaim all warranties and conditions of any kind, whether express or implied.

While due care has been taken to ensure that the disclosures, information, and opinions given are fair and reasonable, PrimeInvestor Financial Research Pvt Ltd and/or none of its officers, directors, partners, employees, agents, subsidiaries, affiliates or business associates shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information/ opinions/ views contained in the research report and recommendations that form part of the Research Service, and/or mails, social media or notifications issued by PrimeInvestor Financial Research Pvt Ltd or any other agency appointed/authorised by PrimeInvestor Financial Research Pvt Ltd. Returns and performance figures mentioned in the research report represent past performance and should not be constituted to be future returns or guaranteed returns.

Any agreements, transactions or other arrangements made between the client and any third party named on (or linked to from) the Website are at your own responsibility and entered into at your own risk. Any information that you receive via the Website, whether or not it is classified as “real time”, may have stopped being current by the time it reaches you. Market price information may be rounded up/down and therefore may not be entirely accurate.

The purpose of these disclosures is to provide essential information about the Research Services in a manner to assist and enable the prospective client/client in making an informed decision for engaging in Research Services before onboarding.

History, present business and background: PrimeInvestor Financial Research Private Limited is registered with SEBI as Research Analyst with registration no. INH200008653. The Research Analyst got its registration on August 19, 2021 and is engaged in offering research and recommendation services.

Disciplinary history: There are no pending material litigations or legal proceedings against the Research Analyst. As on date, no penalties / directions have been issued by SEBI under the SEBI Act or Regulations made thereunder against the Research Analyst relating to Research Analyst services.

Details of the RA's associates: No associates.

Usage of Website Content: This Website is controlled and operated by the RA. All material, including research reports, recommendations, portfolios, ratings, lists of financial products, illustrations, statements, opinions, views, photographs, products, images, artwork, designs, text, graphics, logos, button icons, images, audio and video clips and software (collectively, “Content”) are protected by copyrights, trademarks and other intellectual property rights that are owned and controlled by the RA or by other parties that have licensed their material to us.

Except where otherwise agreed in writing with the RA, material on the Website is solely for the client’s personal, non-commercial use. Except as provided below, the client must not copy, reproduce, republish, upload, post, transmit or distribute such material in any way, including by e-mail or other electronic means and whether directly or indirectly and the client must not assist any other person to do so.

Without the prior written consent of the RA, modification of the materials, use of the materials on any other web site or networked computer environment or use of the materials for any purpose other than personal, non-commercial use is a violation of the copyrights, trademarks and other proprietary rights, and is prohibited. Any use for which the client receives any remuneration, whether in money or otherwise, is a commercial use for the purposes of these Terms.

The client may occasionally distribute a copy of a research report, or a portion of the same, from the Website in non-electronic form to a few individuals without charge, provided the client includes all copyright and other proprietary rights notices in the same form in which the notices appear, original source attribution, and the phrase “Used with permission from PrimeInvestor Financial Research Pvt. Ltd.”

While the client may occasionally download and store research reports or information from the Website for his/her personal use, he/she may not otherwise provide others with access to the same. The foregoing does not apply to any sharing functionality we provide through the Website that expressly allows the client to share Content or links to Content with others. In addition, the client may not use Content he/she has downloaded for personal use to develop or operate an automated trading system or for data or text mining.

The client agrees not to rearrange or modify the Content available through the Website. The client agrees not to display, post, frame, or scrape the Content for use on another website, app, blog, product or service, except as otherwise expressly permitted by these Terms. You agree not to create any derivative work based on or containing the research products and Content. The framing or scraping of or in-line linking to the Services or any Content contained thereon and/or the use of webcrawler, spidering or other automated means to access, copy, index, process and/or store any Content made available on or through the Services other than as expressly authorized by us is prohibited.

The client further agrees to abide by exclusionary protocols (e.g., Robots.txt, Automated Content Access Protocol (ACAP), etc.) that may be used in connection with the Research Services. The client may not access parts of the Research Services to which he/she is not authorized, or attempt to circumvent any restrictions imposed on your use or access of the Services.

As a general rule, the client may not use the Content, including without limitation, any Content made available through one of our RSS Feeds, in any commercial product or service, without our express written consent.

The client may not create apps, extensions, or other products and services that use our Content without our permission. The client may not aggregate or otherwise use our Content in a manner that could reasonably serve as a substitute for a subscription to the Website.

The client may not access or view the Services with the use of any scripts, extensions, or programs that alter the way the Services are displayed, rendered, or transmitted to you without our written consent.

The client agrees not to use the Services for any unlawful purpose. We reserve the right to terminate or restrict the client's access to the Website if, in our opinion, the client's use of the Services may violate any laws, regulations or rulings, infringe upon another person's rights or violate these Terms.

Prohibited content: The Website includes comments sections, blogs and other interactive features that allow interaction among clients and between clients and the RA. We call the information posted by or contributed by users “Contributed Content.” In the course of availing of the Research Services or uploading any post or comment on the Website, the client shall not post any Contributed Content that (i) contains nude, semi-nude, sexually suggestive photos, (ii) tends or is likely to abuse, harass, threaten, impersonate or intimidate other users of the Website and/or Research Services, (iii) is lascivious or appeals to the prurient interest or if its effect is such as to tend to deprave and corrupt persons who are likely to use or have access to the Website and/or Services, or (iv) otherwise violates, is prohibited or restricted by applicable law, rule or regulation, is offensive or illegal or violates the rights of, harms or threatens the safety of other users of the Website and/or Services (collectively “Prohibited Content”).

We reserve the right to cease to provide the client with the Research Services or access to the Website, or terminate your subscription, with immediate effect and without notice and liability, for violating these Terms, applicable law, rules or regulations and reserves the right to remove Prohibited Content which is in violation of these Terms, or is otherwise abusive, illegal or disruptive. The determination of whether any content constitutes Prohibited Content, violates these Terms, or is otherwise abusive illegal or disruptive, is subject to the sole determination of the Firm.

Changes to Research Services: We are constantly endeavouring to improve the quality of Research Services provided to our clients. Due to this, the form and nature of the Research Services provided may change from time to time without any prior notice to the client. We reserve the right to introduce and initiate new features, functionalities, components to the Website and/or Research Services and/or change, alter, modify, or discontinue existing ones without any prior notice to the client.

Warranty and liability disclaimer: The Website, Research Services, and all the materials and services, included on or otherwise made available to the client through this Website is provided by the RA on an “as is” and “as available” basis without any representation or warranties, express or implied except otherwise specified in writing. Without prejudice to the foregoing paragraph, the RA does not warrant that:

  • This Website and/or Research Services will be constantly available, or available at all;
  • The information on this Website or provided through the Research Services is complete, true, accurate or not misleading; or
  • The quality of any products, services, information, or other material that you obtain through the Website or Services will meet your expectations.

The RA, to the fullest extent permitted by law, disclaims all warranties, whether express or implied, including the warranty of merchantability, fitness for particular purpose and non-infringement. The RA makes no warranties about the accuracy, reliability, completeness, or timeliness of the Website, Research Services, Content, Contributed Content, Services, software, text, graphics and links.

The RA does not warrant that this Website, Research Services, information, content, materials, or any other material included on or otherwise made available to you through this Website, their servers, or electronic communication sent by the RA are free of viruses or other harmful components.

Nothing on this Website constitutes, or is meant to constitute, advice of any kind.

Indemnification: The client:

  1. Represents, warrants and covenants that no materials of any kind provided by him/her will:
    1. Violate, plagiarise, or infringe upon the rights of any third party, including copyright, trademark, privacy or other personal or proprietary rights; or
    2. Contain libellous, Prohibited Content or other unlawful material;
  2. Hereby agree to indemnify, defend and hold harmless the RA and all of the RA’s officers, directors, owners, agents, customers/clients, information providers, affiliates, licensors and licensees (collectively, the “Indemnified Parties”) from and against any and all liability and costs, including, without limitation, reasonable advocate’s fees, incurred by the Indemnified Parties in connection with any claim arising out of any breach by the client of these Terms or the foregoing representations, warranties and covenants. The client shall cooperate as fully as reasonably required in the defence of any such claim. The RA reserves the right, at its own expense, to assume the exclusive defence and control of any matter subject to indemnification by the client.

Applicable law: This Website, including the Content and Contributed Content and information contained herein, and the provision of Research Services shall be governed by the Securities and Exchange Board of India, laws of the Republic of India and the courts of Chennai, India which shall retain exclusive jurisdiction to entertain any proceedings in relation to any disputes arising out of the same. As such, the laws of India shall govern any transaction completed using this Website.

Information gathered and tracked: Information submitted or collected on the Website or pursuant to the use of the Services is stored in a database. Specifically, we store the username, name, e-mail address, contact number, as submitted or collected on our Website or through the provision of the Research Services. We may use such information to send out occasional promotional materials, including alerts on new Services available, or other promotional and marketing material relating to our clients and customers.

In accordance with the Information Technology Act 2000, the name and the details of the Grievance Officer at PrimeInvestor is provided below:

Mr. Srikanth Meenakshi
PrimeInvestor Financial Research Pvt. Ltd., Registered office: 659, 4th Avenue, D-Sector, Anna Nagar Western Extension, Chennai 600 101.
Email: [email protected]

11. Mandatory notice:

Clients shall be requested to go through Do’s and Don’ts while dealing with RA as specified in SEBI master circular no. SEBI/HO/MIRSD-POD-1/P/CIR/2024/49 dated May 21, 2024 or as may be specified by SEBI from time to time.

12. Optional Centralised Fee Collection Mechanism:

SEBI has operationalized a centralized fee collection mechanism for IA and RA. Under this mechanism, clients shall pay fees to IAs/RAs through a designated platform/portal administered by a recognized Administration and Supervision body. This is an optional mechanism for the registered entities. At this time, PrimeInvestor has opted out of this fee collection mechanism. Therefore, all subscription payments for the Research Services will be through the modes as specified in Clause 5 of these Terms.

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