3. Policy

After the products are defined in the system, you can accept requests for creating policies in the products, for Policy Holders. A Policy Holder can buy policies in any of the active products defined in the system. A Policy, therefore, essentially is an investment into the underlying portfolios of the Product, and the creation of a Policy lays down the profile or guidelines of the desired pattern of investment by a Policy Holder into a Product.

Note

Policies can be created through the Agency Branch component only.

The Policy Maintenance screen allows you to capture the details of a Policy. The next section gives you step-by-step instructions to do the same.

This chapter contains the following sections:

3.1 Policy Creation

This section contains the following topics:

3.1.1 Invoking Policy Maintenance Detail Screen

Following are the steps you need to follow to create a Policy. Each of these steps is explained in detail in subsequent sections.

Note

Any investor, who desires to invest in any of the Products by purchasing a Policy in a prod­uct, can invest only if he is a valid Unit Holder with an account in the system. Therefore, you must first set up a Unit Holder account for the Policy Holder in the system.

Refer to the chapter ‘Managing Investor Accounts’ for further information.

 

You can invoke the ‘Policy Maintenance Detail’ screen by typing ‘LEDPLAN’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

Select ‘New’ from the Actions menu in the Application tool bar or click new icon to enter the details of the Policy Maintenance.

You can specify the following fields in this screen:

Unit Holder ID

Mandatory

Enter the Unit Holder ID of the Policy Holder. System allows you to create a policy for unauthorized Unit Holder IDs. However, a policy can be authorized only if the policy holder has been authorized in the system.

Unit Holder Name

System will default Unitholder Name for the selected Unit Holder ID.

CIF Number

Mandatory

Enter the CIF Number of the Policy Holder.

Note

3.1.2 Policy Information Tab

Specify the following details in this section:

Policy Details Section

Product ID

Mandatory

Select the product in which the Policy Holder wants to buy the Policy. The option list includes all valid and active Products.

Product Description

Display

The system displays the description of the selected product.

Policy Number

System Generated/ User Input, Mandatory

Specify the Policy Number at the time of policy creation. The system validates the value input for its uniqueness. The policy number cannot, however, be changed during subsequent edit or amend operations.

When a Policy Holder subsequently contributes into this Policy that has been created, the same Policy number has to be specified, and the Policy must be an active, valid Policy for the transactions to be accepted.

Reference Number

16 Characters Maximum, Alphanumeric, Mandatory

Specify a unique initial identification for this Policy. The Reference Number is the initial identification that you give to a Policy, before the Policy Number is generated.

You can invoke the Policy or retrieve it through the Find Form using this Reference Number for subsequent inquiries and transactions.

Rule Effective Date (DD/MM/YYYY)

Date Format, Mandatory

Specify the date from which the Policy will be effective. The format will be the one that has been maintained for your user ID in the ‘My Dash Board User’ setting date format.

Policy Status Code

Mandatory

By Default Policy Status will be 'ACT' on New Mode.

Transaction Currency

Numeric; Optional

Specify the transaction currency for the policy. If you do not maintain this value, the system will default this value at the time of saving the maintenance. The transaction currency maintained at the fund level will be default if all the transaction currencies for the fund are the same. If various currencies have been maintained at the fund level, then the system will default the policy base currency as the policy transaction currency.

Include Interest in Investment

Optional

Select, from the adjoining drop-down list, if the interest earned on the initial investment should be considered along with the initial investment for investment in the policy.

If you select ‘Yes’, the interest amount will be included in the investment and a single transaction will be generated for both. You need to manually add the interest amount calculated in the settlement details to the transaction amount of the particular currency in the asset allocation details.

For instance, if the interest amount is USD 1000 and the transaction amount is USD 100000, then you are required to add USD 1000 to the transaction amount for the currency USD in the asset allocation details.

If you select ‘No’, the interest amount will be generated as a separate UT transaction.

Initial Investment Amount

Optional

You have the option of entering the initial amount to be invested in the policy. If the product is a single premium product (the box ‘Multiple Premiums Allowed?’ is not checked while creating a product), and you enter an amount here, the system will generate a transaction for this amount.

You will be allowed to change the initial investment amount, interest amount and the asset allocation details for a policy that has been authorized as long as it has not been allocated. When you modify the details, the system will reverse the existing initial investment transaction and create a new policy transaction for the modified amount. You can modify the policy any number of times till policy allocation.

The system will not reflect any other modifications in the generated transaction.

If transactions like allocation, premium, annuity, recurring switch, top-ups, and surrender have been generated for the policy, the system will not allow you to modify the initial investment amount.

Consider the following cases:

Case 1

The product is a multiple premium product; you enter the initial investment amount and premium details. The Start Date for the premiums is a system date when the policy is authorized.

When the policy is Authorized, a transaction will be created on the date mentioned for the initial investment amount you have entered.

Case 2

The product is a multiple premium product; you enter the initial investment amount and premium details. The Start Date for the premiums is the System Date. When the policy is saved:

Case 3

The product is a multiple premium product; you do not enter any initial investment amount, but only the premium amount. The Start Date for the premiums is the System Date.

When the policy is Authorized, an initial investment transaction will be generated with the premium amount.

Case 4

The product is a multiple premium product; you do not enter any initial investment amount, but only the premium amount. The Start Date for the premiums is a future date.

When the policy is Authorized, an initial investment transaction will be generated on the date specified, with the premium amount.

Note

In a scenario as described under Case 4, you will be allowed to amend the premium amount till the date specified. You will, however, not be allowed to enter an initial invest­ment amount after you authorize a policy.

Case 5

The product is a multiple premium product; you do not enter either the initial investment amount or the premium amount. No transaction will be generated on saving the policy. An initial investment transaction will be generated only if you enter any premium details at a later stage.

Note

The initial investment amount and premium amounts are independent of each other. This means that changing the initial investment will not change the premium amount and vice versa.

Let us say, for example, you have not entered the initial investment amount and have entered only the premium amount. You now wish to enter an initial investment amount. You may do so before the policy is authorized, and in doing so, the premium amount you have entered will not be affected. Similarly, if you change the premium amount, the initial investment amount will not be affected.

Interest Amount

Display; Can Be Changed

The system computes the interest amount based on the interest calculation days and interest rate provided by you in the Interest Calculation Screen (explained below).

Transaction Category

Mandatory

Select the transaction category from the adjoining drop-down list. Following are the options available:

Product Defaulting section

Funding Factor

5 Characters, Numeric, Optional

The funding factor that is applicable to Policy transactions in this Product, which would have been set up at product-definition level, is displayed here. You can override this value at this stage. This must be expressed as a percentage and cannot exceed one hundred percent.

Funding Repayment Period

Optional

The duration of the repayment period, at the end of which the entire funded amount will be paid back to the investor, which would have been specified for this product, is displayed here. You can change the same for the Policy.

Asset Allocation

Mandatory

The asset allocation for the Policy can be specified either by the sponsor of the product, or by the Policy Holder. The drop-down list contains two options – ‘By Fund’ and ‘By Policy Holder’. Select the required option.

Cession Status

Display

When Policy Holders exercise the option of ‘ceding’ their policies on either a temporary or a permanent basis, the ceded Policy will be designated a ‘Cession ID’ and ‘Cession Status’ in the system. The Cession Status for this Policy is displayed here.

Typically, at the time of Policy creation, the newly created Policy does not have a Cession ID or Cession Status, and this field is blank, and locked. Subsequently, whenever this Policy record is viewed, any changes to Cession Status will be displayed in this field.

Funding Frequency

Display

The frequency at which the funded amount will be repaid to the investor, which would have been set up at the time of Product definition, is displayed here. It cannot be changed at this stage.

Funding Frequency Description

Display

The system displays the description of the specified funding frequency.

Sub Type

Alphanumeric; Optional

Specify the sub type. You can also select the sub type from the option list. The list displays all valid sub types maintained in the system.

Sub Type Description

Display

The system displays the description for the selected sub type.

Policy Creation Type

Optional

Select the Policy Creation Type from the drop-down list.

Description

Display

The system displays the description of the specified Policy Creation Type.

Preferred Fund for Redemption

You can select or amend the redemption fund during the creation or amendment of the policy.

If you maintain adequate balance to recover periodic fees in ‘Preferred Fund for Redemption’, system will redeem entire periodic fees from the preferred fund.

If you do not maintain adequate balance ‘Preferred Fund for Redemption’ system will follow the present logic to recover the periodic fees.

Note

For a CMA applicable Product, system would treat CMA Fund as preferred fund for peri­odic fee redemptions, provided no preferred fund is selected at Product level.

Refer the section ‘Cash Management Account’ in this chapter for more details on the operation of the Cash Management Account.

Description

Display

The system displays the description of the specified preference for fund redemption.

Initial Investment Policy Txn Number

Display

The system displays the transaction number of the initial investment policy.

Specifying Exchange Rate Details

The exchange rate details that are defaulted here or that you modify here will be used to convert the policy transaction amount as well as the interest on initial investment amount into the policy base currency.

Amount Applied

Display Only

The system displays the transaction amount in terms of the policy base currency.

Source ID

Alphanumeric; Optional

You can select the source ID required from the adjoining option list. If you do not specify any, the system will default the source ID when you save the policy.

FX Deal Date

Date; Optional

Enter the deal date for exchange rate.

FX Value Date

Date; Optional

Enter the value date for the exchange rate.

Override Exchange Rate

Alphanumeric; Optional

Select ‘Yes’ if you wish to change the exchange rate that is displayed here. If you select ‘Y’, however, you need to specify the exchange rate to be used for the transaction in the ‘Exchange Rate Applied’ field. Select ‘No’ if you wish to retain the exchange rate that is displayed by the system.

Exchange Rate Applied

Numeric; Conditional

Specify the exchange rate to be used to convert the transaction amount from transaction base currency to policy base currency, if you have chosen to override the exchange rate.

3.1.3 Policy Details Tab

Click ‘Policy Details’ tab, to invoke the Policy Detail section:

Policy Dates Section

Creation Date (DD/MM/YYYY)

Mandatory

This signifies the date on which Policy record was entered into the system. By default, the system displays the Application Date in this field. This date cannot be altered.

Policy Start Date (DD/MM/YYYY)

Date Format, Mandatory

Specify the date from which the Policy is available for transactions. By default, the system displays the application date in this field.

The Policy Start Date can be a past date if backdating is allowed for the product (if you have selected the option ‘BackDating Allowed?’ in the Product Maintenance screen), but it must not be earlier than the Product Start Date.

Maturity Date Basis

Mandatory

The option you select here, will decide on what basis the maturity date will be calculated.

You have the following two options:

You can select the option ‘Retirement Age’ only if you have selected the option ‘YES’ against the field ‘Retirement Features Supported’. In such a case, the maturity date will be calculated on the basis of the age of retirement you will specify at the Product level.

If you select the option ‘Minimum Tenor’, the maturity date will be calculated on the basis of the minimum tenor you will specify at the Product level.

Maturity Date (DD/MM/YYYY)

Date Format, Mandatory

When the Start Date of the Policy is specified, the system computes the maturity date for the Policy by adding the Minimum Tenor that has been specified at the product level for all policies, to the Policy Start Date, and defaults the computed date in this field. You can change this date.

The concept of a Maturity Date enables the AMC to keep track of premature closures of policies that take place, so that the applicable exit fees may be levied.

A Policy that has matured continues to exist in the product for all activities, but no transactions will be accepted into the Policy after the Policy End Date.

Policy End Date (DD/MM/YYYY)

Date Format, Mandatory

Specify the date beyond which the Policy should cease to be active. This date must not be earlier than the application date or the Policy Start Date.

Type of Policy

Optional

Specify whether the Policy being created is a new Policy, a rollover from an existing Policy or whether the customer is transferring retirement assets.

Transfer-in option is applicable for fresh investment. If Balance Transfer-in is chosen from the drop down list the policy asset allocation will be enhanced to capture the unit transferred in each fund and WAC .The system will generate unit based transaction for such an initial investment.

Note

The option list includes the option ‘Accelerated Annuity’. If you select this option, in case of death of a policy holder, the policy will be transferred to a new policy opened in the name of the beneficiary .The initial amount of the new policy will be the maturity amount of the old one and the entire maturity proceed will be paid out over number of occurrences and frequency (maintained in the annuity tab).

Description

Display

The system displays the description of the selected policy type.

Dates Defaulting Section

Next Anniversary Date (DD/MM/YYYY)

Date Format, Mandatory if the box ‘Override Anniversary Date’ is checked

Enter the Anniversary Date for the annuity payment.

This field is enabled only if the ‘Override Anniversary Date?’ option has been checked.

Previous Anniversary Value

Numeric, Mandatory if the box ‘Override Anniversary Date’ is checked

Enter the preceding anniversary amount.

Note

Post authorization, you will be allowed to amend the ‘Anniversary Value’ and the ‘Previous Anniversary Value’ fields provided the ‘Override Anniversary Date?’ option has been checked.

Override Anniversary Details?

Optional

When you enter the Start Date of the Policy in the Policy Details section of this screen, the system defaults the Anniversary Date to a date that is exactly one year after the Start Date.

Policy Administrator

Display

The plan administrator you have specified for the product will be displayed. You will not be allowed to change this.

Policy Amount

Numeric, Optional

Specify an indicative amount for which the Policy is taken in the product. The system does not perform any validation against this amount, and it is used only for information purposes.

ROA Applicable

Indicate whether a Rate of accumulation is applicable for the policy .

The initial administrator and broker will use the market value at policy level to derive the fee return value. The fee is calculated based on the gross amount of the individual transaction value.

You can select the applicable ROA for policy and policy holder. On selecting the Right of accumulation for Policy, an accumulation rate is applied on the policy, being created. On selecting Unit holder, the Right of Accumulation is applicable for all the policies mapped to the particular Unitholder.

For an ROA function to be applicable, a cumulative load would have to be setup and mapped in the Load Product.

Allow ROA at CIF Level

Indicate if ROA is to be allowed at CIF level or not by choosing from the drop-down list.

Withdrawal Counter

Display

This field displays the number of withdrawals taken by the policy holder. It will be displayed irrespective of the product to which the policy belongs.

System will update the Withdrawal counter at policy level after doing a withdrawal transaction, and also validates with the No. of withdrawals allowed at Policy level.

Example

If you enter the Start Date of the Policy as 3rd June 2005, the Anniversary Date will be defaulted to 3rd June 2006.

If you wish to change the Anniversary Date of the annuity payment, check the box ‘Override Anniversary Date’.

This field is enabled only if the ‘Override Anniversary Date?’ option has been checked

Product Level Defaulting Section

Statement Frequency

Mandatory

Specify the frequency at which the Policy statement must be mailed to the Policy Holder for this Policy.

Note

This frequency overrides the frequency specified for the Product.

Description_ statement frequency

Display

The system displays the description of the specified statement frequency.

Policy Base Currency

Mandatory

Specify the base currency to be associated with the policy or select the policy base currency from the option list provided. All currencies maintained in the system get displayed in the option list.

While saving the record, the system validates whether the selected currency is supported by product and saves the record on successful validation.

Description_ policy base currency

Display

The system displays the description of the specified policy base currency.

Life Cover Applicable

Optional

This field indicates whether or not the Policy Holder has an option to opt for a life cover while subscribing to this product. The option you have selected for the product will be displayed here. You can change the same for the Policy.

Life Cover Amount

Display

This is the amount to be paid by the Policy Holder as a fee for obtaining the life cover for any Policy held by him in this product. The amount you have specified for the product will be displayed

Proof of Existence Certificate

Display

This field indicates whether or not the Policy Holder will need to produce a certificate of existence. This option specified at for the product, in the Product Maintenance screen, will be defaulted. You will not be allowed to change this.

Guarantee Period

Optional

Specify the guarantee period.

Take on Annuity Amount

Enter the take-on annuity amount here. The annuity details will be calculated by the system based on the amount you enter here and not the annuity percentage, till the first anniversary. The annuity details will be taken into consideration after the first anniversary.

Number of Surrenders Allowed

System will default the value from Product. User can override it.

Retirement Age

Mandatory and Enabled only if Maturity Date Basis for Product is ‘Retirement Age’

Specify the age that will be considered as retirement age for Policy Holders under this product. After this age, the Policy Holders will become eligible for retirement benefits, if any.

Note

This field will be enabled only if, for the Product , in the Product Maintenance screen:

Life Expectancy

Optional

User can enter life expectancy.

Policy Term (Years)

Optional

You can enter the policy term.

3.1.4 Additional Details Tab

Click ‘Additional Details’ tab, to invoke the Additional Details section:

Maximum Annual Contribution

Numeric, Optional

This is the maximum amount that the Policy Holder can invest annually in a Policy in this Product. This amount includes top ups, if any. The amount displayed is the amount specified for the Product. You can change the same for the Policy.

Minimum Withdrawal

Numeric, Optional

This field will be enabled if you have specified the Withdrawal Limit Mode as Amount. Specify the minimum amount that a Policy Holder can be withdraw from the holdings.

Maximum Withdrawal

Numeric, Optional

This field will be enabled if you have specified the Withdrawal Limit Mode as ‘Amount’. Specify the maximum amount that a Policy Holder can be withdraw from the holdings.

Limit Percentage

Numeric, Optional

This field will be enabled if you have specified the Withdrawal Limit Mode as ‘Percentage’. Specify the maximum withdrawal in terms of a percentage, that a Policy Holder can be withdraw from the holdings.

Additional Investments Allowed

Mandatory

This option indicates whether or not the Policy Holder can make an additional investment in a Policy. The option you have specified for the Product will be defaulted here.

Note

You will be allowed to uncheck this box if it is checked. You will, however, not be allowed to check this box if it is unchecked

Minimum Additional Investment

Numeric, Optional

This field indicates the minimum additional investment amount that a Policy Holder should make (if the option ‘Additional Investments Allowed’ has been selected for the Policy Holder). The amount in displayed in this field is the amount entered for the Product. You may change the same for the Policy.

Maximum Additional Investment

Numeric, Optional

This field indicates the maximum additional investment amount that a Policy Holder should make (if the option ‘Additional Investments Allowed’ has been selected for the Policy Holder). The amount in displayed in this field is the amount entered for the Product. You may change the same for the Policy.

Add. Investment Step Amount

Numeric, Optional

This field indicates the step amount for an additional investment. The amount in displayed in this field is the amount entered for the product. You may change the same for the Policy.

Minimum Annual Withdrawal

Numeric, Optional

If the withdrawals are allowed at the Product level then the minimum amount that customer needs to withdraw annually can be specified here while creating a Policy. This will override the amount set at the Product level. The amount set at the product level will be shown here after user selects the Product.

Participating Employer

Optional

You may specify the underlying policyholders’ employer. The option list displays all participating employers linked to the chosen product.

Auto Clear Provisional Balance

This field indicates whether 100% outflow transactions include provisionally allotted units. The option specified for the product, in the Product Maintenance screen, will be defaulted. However, you can change the defaulted option. You can specify any of the following options:

Auto Clear Reinvestments

This field indicates whether 100% outflow transactions include freeze held and reinvestment units. The option specified for the product, in the Product Maintenance screen, will be defaulted. However, you can change the defaulted option.

You can specify any of the following options:

Remarks

Optional

You may enter any remarks on the Policy if you wish.

Refer to the chapter “Maintaining System Parameters” for more details.

3.1.5 Intermediary Details Tab

You will need to capture details of the intermediaries attached to the initial investment. When you click ‘Intermediary Details’ link, the screen is invoked:

The default intermediary details maintained for the unit holder involved in the transaction are displayed here. However, you can change the defaulted values.

Intermediary

Alphanumeric, Optional

From the list, select the broker preferred by the Policy Holder.

Parent Broker Code

The system will display the parent broker code once the intermediary code is chosen.

Split Percentage

Percentage Format, Mandatory if you select any broker in the Intermediary field.

Specify the percentage of the commission that the selected broker is entitled to receive on any transactions put through for the investor.

This percentage must not exceed one hundred percent.

Note

If you specify more than one broker in this section, the split percentages for all brokers, when summed up, must not exceed or fall below one hundred percent.

3.1.6 Beneficiary Details Tab

In this section, you must specify the details of one or more beneficiaries, if any, for the Policy Holder. A beneficiary could be an existing Unit Holder in the system or could be an external entity.

When you click ‘Beneficiary Details’ link, the screen is invoked:

It is mandatory for you to maintain beneficiary details only if the option ‘Beneficiary Details Mandatory’ has been checked for the underlying product.

Existing UH

Mandatory

Select ‘Yes’ for existing Unit Holder. Else ‘No’.

Beneficiary ID

Mandatory

If the beneficiary is an existing Policy Holder, you can invoke the same from the option list. Else, specify the same.

Relationship

Mandatory

Specify the relationship of the beneficiary with the Policy Holder.

Ratio

Mandatory

Specify the percentage of the Policy Holder’s holdings that belongs to the beneficiary. The ratio should sum up to 100.

Date of Birth (DD/MM/YYYY)

Optional

Enter the date of birth of the beneficiary.

Type

Mandatory

Specify whether the beneficiary is a primary or secondary holder.

Beneficiary for

Select ‘Ownership’ or ‘Proceeds’ from the drop down list.

Personal Details

First Name, Middle Name and Last Name

Display

The names are defaulted for the selected identification type.

Identification ID

Display

The identification ID is defaulted for the selected identification type.

Identification Type

Select the identification type from the option list.

Address Details

State or Country, City, Zip Code and Address

Optional

Enter the address of the beneficiary, including details such as the city, zip code and state or country.

Phone Number

Optional

Enter the phone number of the beneficiary.

Fax Number

Optional

Enter the fax number of the beneficiary.

Email ID

Optional

Enter the email ID of the beneficiary.

Account Details

Bank

Optional

Specify the bank code of the beneficiary’s bank. You can select the same from the option list, if the bank code is a valid code in the system.

Branch

Display

The branch of the bank is defaulted for the selected beneficiary bank.

Account Currency, Account Number, Account Type

Display

The values are defaulted for the selected beneficiary bank

IBAN

36 Characters Only; Alphanumeric; Optional

Specify the IBAN (International Bank Account Number) of the account holder.

3.1.7 Constituent Details Tab

When you click ‘Constituent Details’ link, the screen is invoked:

It is mandatory for you to maintain constituent details only if the option ‘Constituent Details Mandatory’ has been checked for the underlying product.

Constituent Details

The constituent details are given below:

Existing UH

Mandatory

Select ‘Yes’ for existing Unit Holder. Else ‘No’.

Constituent Type

Mandatory

Select all the stakeholders of the Policy from the option list.

Constituent ID

Mandatory

Specify the ID of the constituent from the option list. You can either select a valid Unit Holder in the system or enter a Constituent ID.

Relationship

Mandatory

Select, from the option list, the relationship of the constituent to the Policy Holder.

Status

Select the status ‘Alive’ or ‘Dead’.

Personal Details

The personal details are given below:

Identification Type

Select the identification type from the option list.

Identification ID

Display

The identification ID is defaulted for the selected identification type.

Date of Birth

Optional

Enter the date of birth of the constituent holder.

First Name, Middle Name and Last Name

Display

The names are defaulted for the selected identification type.

Address Details

The address details are given below:

State or Country, City, Zip Code and Address

Optional

Enter the address of the constituent holder, including details such as the city, zip code and state or country.

E-mail ID

Optional

Enter the E-mail ID of the constituent holder.

Phone number

Optional

Enter the phone number of the constituent holder.

Fax Number

Optional

Enter the fax number of the constituent holder.

Account Details

The account details are given below:

Bank

Optional

Specify the bank code of the constituent's bank. You can select the same from the option list, if the bank code is a valid code in the system.

Branch

Display

The branch of the bank is defaulted for the selected constituent bank.

Account Currency, Account Number, Account Type

Display

The values are defaulted for the selected constituent bank.

IBAN

36 Characters Only; Alphanumeric; Optional

Specify the IBAN (International Bank Account Number) of the constituent holder.

3.1.8 Projected Return Value Details Tab

In this section, you can override or alter the value of any load (including derived loads, if any) mapped to the selected fund and applicable for the transaction type, which is to be computed at the time of allocation. The frequency of computation for such loads would be "allocation".

Click on the ‘Projected Return Value’ link to invoke the screen:

This section is only enabled for funds that have allocation time loads mapped to them as applicable for the transaction type.

Policy Number

Optional

System displays the Policy Number.

Transaction Number

Optional

System displays the Transaction Number.

Transaction Date

Optional

System displays the Transaction Date.

Fund ID

Optional

System displays the Fund ID.

Policy Holder

Optional

System displays the Policy Holder.

Load ID

Optional

System displays the Load ID.

Transaction Type

Optional

System defaults the Transaction Type.

Ref Type

Optional

System defaults the Reference Type.

Projected Return Value

Optional

The System populates the return value from the load setup.

If there are criteria based loads, the criteria is evaluated during UT transaction generation and it will be used during allocation.

3.1.9 Asset Allocation Button

The initial contribution towards the Policy can be directed into any number of mapped funds for the product, and annuity is paid out to the Policy Holder from any of these funds. The ratio of contributions received into the Policy to the annuity payouts for each of the mapped funds of the product, as specified at the time of Policy creation are displayed here. The initial contribution that you enter can be in different currencies. In this case, you need to mention the currency-wise details here.

Note

The asset allocation details that you specify here will be applicable to only the initial con­tribution towards the policy, and not the annuity and premium payments.

When you click ‘Asset Allocation’ button, the screen is invoked:

Enter information in the following fields:

Fund ID

Mandatory

All the funds mapped for the selected product are displayed in the option list. Against each of these funds, you can specify the investment ratio and the annuity ratio.

Transaction Currency

Alphanumeric; Optional

Specify the transaction currency for the initial contribution. If many currencies have been mentioned in the settlements, then you are required to enter the amount for individual currencies. You can specify a transaction currency only if the transaction is amount-based.

Transaction Amount

Numeric; Optional

Specify the transaction amount for the currency selected. If different currencies have been mentioned in settlements, then you can specify only the transaction amount. The system will default the ratio. If all the currencies in settlements are the same, then you can specify either the transaction amount or the ratio.

Note

Exchange Rate Source

Alphanumeric; Optional

The system will display the exchange source maintained at default set-up in system parameters. You can change it by selecting the required exchange rate source from the adjoining option list. This will be used by the system to convert the transaction amount in terms of fund base currency.

Override Exchange Rate?

Optional

Select ‘Yes’ if you wish to change the exchange rate that is displayed here. If you select ‘Yes’, however, you need to specify the exchange rate to be used for the transaction in the ‘Exchange Rate Applied’ field. Select ‘No’ if you wish to retain the exchange rate that is displayed by the system.

Exchange Rate

Numeric; Optional

The system will default the exchange rate available for the currency based on the exchange source specified. If you have elected to override the exchange rate, you need to enter the exchange rate to be used here. If exchange rate is not available, then the system will generate the transactions as incomplete ones. Such transactions can be enriched later through the ‘Policy Transaction Enrichment Screen’.

FX Deal Date

Date format; Optional

The system will default the starting date of the policy here. You can change it if required.

FX Value Date

Date format; Optional

The system will default the starting date of the policy here. You can change it if required.

Units/ Ratio

3 Characters Maximum, Numeric, Mandatory

For each fund that is displayed, specify the ratio of investment or the number of units to be made in the fund out of the total contribution towards the Policy. The sum total of the investment ratio should add up to 100.

If there are many currencies specified as part of settlements, then the system will not allow you to enter a ratio. Instead you need to enter the transaction currency and transaction amount for each currency. The system will compute and display the ratio based on the currency and amount details provided. To calculate the ratio, the transaction amounts will be

If the settlements are maintained in only one currency, then you can enter either the ratio or the transaction amount.

Note

If the type of policy is 'Balance Transfer-in' the number of units being transferred-in are mentioned and not the ratio of investment.

WAC

Specify the take-on WAC here. This will be used as the opening WAC in respective funds. CGT computation for initial investment transaction will be based on the take-on WAC

Note

WAC is mandatory in case of Balance Transfer-In type of policy.

KIID Compliant

Optional

Select if the policy is KIID compliant or not from the adjoining drop-down list. Following are the options available:

3.1.10 Payment Details Button

The Settlement Details screen is invoked when you click on this button.

Sequence Number

Optional

You can enter the sequence number.

Account Number

Optional

Specify the account number from which the transfer of payment is being made.

Account Currency

Optional

Specify the account currency of the account number from which the transfer of payment is being made.

Bank Name

Optional

Specify the bank from which the transfer of payment is being made.

Account Type

Optional

Specify the account type from which the transfer of payment is being made.

Branch Code

Optional

Specify the branch from which the transfer of payment is being made.

IBAN

36 Characters Only; Alphanumeric; Optional

Specify the IBAN (International Bank Account Number) of the account holder.

Payment Date

Date Format; Mandatory

Specify the date on which the initial investment was done. You can deposit the amount in different currencies and on different dates.

Payment Currency

Alphanumeric; Mandatory

Enter the currency in which the initial investment is being done. The initial amount can be deposited in multiple currencies.

Payment Amount

Numeric; Mandatory

Enter the initial investment amount being paid in the particular currency.

Exchange Rate Details

When you click the ‘Enrich’ button in the ‘Policy Information’ tab, the system will default the following exchange rate details for each settlement:

If exchange rate details are not available for any settlement when the transaction or policy is entered, the system will not generate a UT transaction. Once all the settlement details have been enriched in the ‘Policy Transaction Exchange Rate Enrichment’ screen and the ‘FCIS Enrich Exchange Rate Detail’ screen, the system will compute the transaction amount and generate the UT transaction. If it is not enriched, then the system will pick the exchange rate during EOD and generate the UT transaction.

Interest Details

When you click the ‘Enrich’ button in the ‘Policy Information’ tab, if the initial investment amount has been deposited prior to the policy start date, the system will calculate and display the interest on the payment amount in the ‘Policy Information’ tab. The interest will be calculated from the date of payment till the transaction date.

When you click ‘Calculate Interest’ button in the ‘Settlement Details’ screen, the system will calculate and display the interest amount in the ‘Interest Amount’ field in the same screen.

Interest Rate

Numeric; Optional

Enter the rate of interest that is to be used to calculate interest amount for the particular currency. Alternatively, you can maintain the interest rate in the ‘Interest Rate Maintenance’ screen. If you do not maintain an interest rate, the system will take it as null.

Interest Amount

Display Only

The system computes and displays the interest amount.

Interest Amount in Transaction Currency

Display Only

The system computes and displays the interest amount in terms of the transaction currency.

Interest Calc. Days

Display Only

The system calculates the number of days for which interest calculation has to be done for a policy based on the policy start date and payment date.

Basis Days

Mandatory, Numeric

Select the interest basis days, based on which the interest will be calculated. The options available are:

When you click the ‘Clear’ button, the interest-related details will be cleared.

3.1.11 Premium Details Button

In this section, enter the details of the premium payment and the frequency at which the premium payments will be made.

You can enter the details for more than one premium.

When you click on the ‘Premium Details’ button, the screen is invoked:

Enter information in the following fields:

Premium Details

Sequence Number

Optional

You can enter the sequence number.

Policy SI Number

Display

This number is generated by the system. It represents the number of premium payments between the Start Date and End Date specified for the premium payment.

Status

Mandatory

Select the status of the standing instruction for premium payment from the option list.

Note

If you select the status ‘STOP’, escalation will not be applied on the premium.

Transactions will not be generated for SIs on premiums whose status is ‘STOP’. It is pos­sible for you to change the status of such SIs to ‘ACTIVE’ during amendment of the policy.

During amendment of a policy, you can change the status of an active SI, to ‘Paused’, ‘Stopped’ or ‘Cancelled’.

During amendment of an SI marked ‘Not Started’, you can change all details except the status of the SI. You will be allowed to delete the SI.

During amendment of an active SI:

Start Date (DD/MM/YYYY)

Date Format, Mandatory

Specify the date, beginning from which, the first premium payment is to be made for this Policy. Subsequent to this payment, premium payments will be made according to the premium frequency specified for the Policy.

Note

The Premium Start Date must not be equal to and earlier than the Policy Start Date.

End Date (DD/MM/YYYY)

Date Format, Mandatory

Specify the date on which the last premium payment will be made.

Note

The premium period of premium SIs cannot overlap.

Value

Numeric, Mandatory

Specify the amount paid by the Policy Holder as the premium amount for the Policy.

Frequency

Mandatory

Specify the frequency at which the premium payments will be made, for this Policy, by the Policy Holder.

Transaction Category

Mandatory

Select the transaction category from the adjoining drop-down list. Following are the options available:

Sub Type

Alphanumeric; Mandatory

Specify the Sub type for premium transaction The adjoining option list displays valid Sub types maintained in the system. You can choose the appropriate one.

Payment Details

Payment Mode

Mandatory

Select the mode of the premium payment.

You have the following options:

Bank Code

Specify the bank code. The adjoining option list displays valid bank codes maintained in the system. You can choose the appropriate one.

Bank Name

Specify the bank from which the transfer of payment is being made.

Branch Code

Specify the branch from which the transfer of payment is being made.

Branch Name

Display

The system displays the name of the branch for the selected branch code.

Account Holder Name

Alphanumeric; Mandatory

Specify the account holder name.

Account Type

Optional

Specify the account type from which the transfer of payment is being made.

Account Number

Optional

Specify the account number from which the transfer of payment is being made.

Account Currency

Optional

Specify the account currency of the account number from which the transfer of payment is being made.

IBAN

36 Characters Only; Alphanumeric; Optional

Specify the IBAN (International Bank Account Number) of the account holder.

Escalation Details

Enter escalation information in the following fields:

Escalation Start Date (DD/MM/YYYY)

Date Format, Optional

Specify the date from which escalation will commence. This date must be earlier than the End Date of the Policy, and must be later than the Premium Start Date.

Escalation End Date (DD/MM/YYYY)

Date Format, Optional

Specify the date from which the escalation must cease to be applied on the annuity. This date must be later than the Premium Start Date. If the Premium Escalation Start Date has been specified, then the End Date is mandatory and must be specified.

Escalation Mode

Mandatory

Annuity payments can be escalated periodically as a pre-defined percentage, amount or market value. Select the mode from the drop-down list.

Escalation Frequency

Mandatory

Select the frequency at which the escalation is to be applied, from the values in the drop-down list. If the Start Date has been specified, the frequency is mandatory and must be specified.

Escalation Value

Mandatory’

Specify the escalation amount that is to be applied.

Cheque Details

Enter the check details in the following fields:

Cheque Number

Mandatory

Enter the cheque number of the cheque by which the premium is being paid.

Cheque Date (DD/MM/YYYY)

Date Format, Mandatory

Enter the cheque date of the cheque by which the premium is being paid.

Asset Allocation Details

Fund ID

Alphanumeric; Mandatory

Specify the fund ID.

Fund Name

Display

The system displays the name of the fund.

Units/ Ratio

Numeric; Mandatory

Specify the units or ratio details.

3.1.12 Annuity Details Button

As mentioned earlier, this section is available only if, for the product you have chosen, you have selected the option ‘Annuity Applicable?’ in the Premium and Annuities section of the Product Maintenance Details screen.

If, for the product you have chosen, annuity details are applicable, the following screen is invoked when you click on the Annuity Details tab:

Annuity Details

Sequence Number

Optional

You can enter the sequence number.

SI Number

Display

When you save the details of the Policy you are entering, the Standing Instructions or SI Number will be generated by the system and displayed.

Status

Mandatory

Select the status of the standing instruction of the annuity payment from the option list. The options are:

Note

If you select the status ‘STOP’, escalation will not be applied on the annuity.

Transactions will not be generated for SIs on annuities whose status is ‘STOP’. It is pos­sible for you to change the status of such SIs to ‘ACTIVE’ during amendment of the policy.

During amendment of a policy, you can change the status of an active SI, to ‘Paused’, ‘Stopped’ or ‘Cancelled’. However, if you have checked the box ‘Phase-In’, you will not be allowed to select the options ‘Paused’ and ‘Stopped’.

During amendment of an SI marked ‘Not Started’, you can change all details except the status of the SI. You will be allowed to delete the SI.

During amendment of an active SI:

Start Date (DD/MM/YYYY)

Date Format, Mandatory

Specify the date, beginning from which, the annuity payment is to be made for this Policy. Subsequent to this payment, annuity payments will be made according to the annuity frequency specified for the Policy.

Note

The Annuity Start Date must not be equal to and earlier than the Policy Start Date.

End Date (DD/MM/YYYY)

Date Format, Mandatory

Specify the date on which the last annuity payment is to be made for this Policy. This date must not be the same as the Annuity Start Date.

Note

The annuity period for annuity SIs cannot overlap.

Value

Numeric, Optional

The amount that is to be paid as annuity to the Policy Holder over a time period in definite intervals / frequencies against the initial investment towards this Policy in this Product is displayed here. You can change this amount at this stage.

Note

The is not applicable if the type of policy is 'Accelerated Annuity'

If the value specified here is a percentage, it must be within the Annuity Minimum Ratio and the Annuity Maximum Ratio specified at product level.

Note

If you have selected the option ‘Amount’ against the field Mode, the value you enter will be the annuity amount to be paid in the frequency specified. If you have selected the option ‘Percentage’, the percentage value of the policy annuity amount will be calculated and paid in the frequency specified.

The same is illustrated with the following example:

Case 1

The Mode is ‘Amount’. Value is 1000 currency units. Frequency is Monthly. In this case, 1000 currency units will be paid to the policy holder every month.

Case 2

The Mode is ‘Percentage’. Value is 10%. Frequency is Monthly. In this case, 10% of the policy anniversary amount will be paid to the policy holder in that year.

Frequency

Mandatory

Specify the frequency at which annuity payments must be made for this Policy.

Mode

Alphanumeric, Mandatory

Annuity payments can be made either as a percentage of the net investment amount or as a flat amount. Accordingly, select the appropriate mode in this field.

Note

This is not applicable if the type of policy is 'Accelerated Annuity'

Transaction Currency

Specify the code of the transaction currency. The adjoining option list displays all valid currency codes along with their description. You can choose the appropriate one.

Pay Incidence

Mandatory

The payment incidence for an annuity payment sets up the actual payout incidence within the specified frequency for the annuity payment.

Annuity Type

Mandatory

Select the desired annuity type that is to be applicable for this Policy, from the options provided in the drop-down list.

For information purposes only, the annuitant has the option of specifying the type of annuity that should accrue. The four types provided are as follows:

Asset Allocation Type

Mandatory

Select the type of asset allocation from the drop down list provided. The options available are:

If the option selected is “User Input” then you need to specify the annuity asset allocation.

If the option selected is “Policy Portfolio” then you will not be allowed to capture the ratio of funds for annuity or override the load details during policy maintenance. In this case the ratio of funds will be calculated based on policy portfolio.

If the type of asset allocation is specified as ‘Policy Portfolio’, then you will not be allowed to pass policy journal entries for such transactions.

Reduction Percentage

5 Characters Maximum, Numeric, Mandatory

Specify the reduction in the annuity in the case of death of one or more of the annuitants, or the primary annuitant, as is applicable.

Note

This field is only applicable for Annuity Types 3 and 4.

No Of Annuity Occurrences

Numeric

Enter the number of annuity occurrences. This is applicable only for accelerated annuity policies.

Sub Type

Alphanumeric; Mandatory

Specify the Sub type for annuity transaction from the adjoining option list. The adjoining option list displays all valid Sub type maintained in the system. You can choose the appropriate one.

Payment Details

Payment Mode

Mandatory

Select the mode of the annuity payment.

Bank Code

Specify the bank code. The adjoining option list displays all valid bank codes maintained in the system. You can choose the appropriate one.

Payment Branch Code

Specify the branch from which the transfer of payment is being made Account Number

Optional

Specify the account number from which the transfer of payment is being made.

Bank Name

Specify the bank from which the transfer of payment is being made.

Branch Name

Display

The system displays the branch name.

Account Holder Name

Alphanumeric; Mandatory

Specify the account holder name.

Account Type

Optional

Specify the account type from which the transfer of payment is being made.

Account Number

Specify the account number. The adjoining option list displays all valid account numbers maintained in the system.

Transfer Account Currency

Optional

Specify the account currency of the account number from which the transfer of payment is being made.

IBAN

Alphanumeric; Mandatory

Specify IBAN details.

Asset Allocation Details

Enter the following asset allocation details for the annuity details :

Fund ID

Mandatory

All the funds mapped for the selected product are displayed in the option list. Against each of these funds, you can specify the investment ratio and the annuity ratio.

Fund Name

Specify the fund name.

Units/ Ratio

3 Characters Maximum, Mandatory wherever applicable

For each fund that is displayed, specify the ratio of annuity payment to be made from the fund, to the total annuity payment from the Policy. The sum total of the annuity ratio should add up to 100.

Escalation Details

Enter information in the following fields:

Escalation Start Date (DD/MM/YYYY)

Date Format, Optional

Specify the date from which escalation will commence. This date must be earlier than the End Date of the Policy, and must be later than the Annuity Start Date.

Escalation End Date (DD/MM/YYYY)

Date Format, Optional

Specify the date from which the escalation must cease to be applied on the annuity. This date must be later than the Annuity Start Date, If the Annuity Escalation Start Date has been specified, then the End Date is mandatory and must be specified.

Escalation Mode

Mandatory

Annuity payments can be escalated periodically as a pre-defined percentage, amount or

market value. Select the mode from the drop-down list.

Escalation Frequency

Mandatory

Select the frequency at which the escalation is to be applied, from the values in the drop-down list. If the Start Date has been specified, the frequency is mandatory and must be specified.

Escalation Value

Mandatory’

Specify the escalation amount that is to be applied.

3.1.13 Recurring Switch Details Button

In this section, enter the details of any recurring switch transactions that the Policy Holder may want to enter into. The details maintained would be standing instructions for a switch transaction.

Recurring Switch Details

Sequence Number

Optional

You can enter the sequence number.

SI Number

Display

When you save the details of the Policy you are entering, the Standing Instructions or SI Number will be generated by the system and displayed.

Note

During amendment of a Policy you will not be allowed to change the number of occurrence that you already have specified.

Status

Mandatory

Select the status of the recurring switch from the option list. The options available are:

Note

If you select the status ‘STOP’, escalation will not be applied on the annuity.

Transactions will not be generated for SIs on annuities whose status is ‘STOP’. It is pos­sible for you to change the status of such SIs to ‘ACTIVE’ during amendment of the policy.

During amendment of a policy, you can change the status of an active SI, to ‘Paused’, ‘Stopped’ or ‘Cancelled’.

During amendment of an SI marked ‘Not Started’, you can change all details except the status of the SI. You will be allowed to delete the SI.

During amendment of an active SI:

Start Date (DD/MM/YYYY)

Date Format, Mandatory

Enter the date on which the switch transactions should begin.

End Date (DD/MM/YYYY)

Date Format, Mandatory

Enter the date on which the switch transactions should stop.

Value

Numerical, Mandatory if the box ‘Portfolio Switch ’or ‘Phase In’ is not checked

Enter the value of the switch transaction.

Frequency

Mandatory

Select the frequency with which the switch transactions should occur.

Transaction Currency

Specify the code of the transaction currency. The adjoining option list displays all valid currency codes along with their description. You can choose the appropriate one.

Portfolio Switch

Optional

Select ‘Yes’ to indicate the switch will be a portfolio switch. In such a case, the field ‘Transaction Value’ will be defaulted to 0 and locked. A portfolio switch can be a complete or partial switch.

Phase In

Optional

If you select ‘Yes’, the system will allow you to move the fund amount of one fund to into another and you will be able to enter the Start Date, Number of Occurrences and Frequency in this screen. The system will calculate the SI value, based on these parameters.

Note

Type

Mandatory

Select the type of switch applicable.

No Of Annuity Occurrences

Numeric

Enter the number of annuity occurrences. This is applicable only for accelerated annuity policies.

Transaction Category

Mandatory

Select the transaction category from the adjoining drop-down list. Following are the options available:

Sub Type

Alphanumeric; Mandatory

Specify the Sub type for recurring switch transaction. The adjoining option list displays valid Sub types maintained in the system. You can choose the appropriate one.

Escalation Start Date (DD/MM/YYYY)

Date Format, Optional

Specify the date from which escalation of the recurring switch will commence. This date must be earlier than the End Date of the recurring switch, and must be later than the Start Date of the recurring switch.

Escalation End Date (DD/MM/YYYY)

Date Format, Optional

Specify the date from which the escalation must cease to be applied on the recurring switch. This date must be later than the Start Date. If the Escalation Start Date for the recurring switch has been specified, then the End Date is mandatory and must be specified.

Escalation Mode

Mandatory

Switch payments can be escalated periodically as a pre-defined percentage, amount or market value. Select the mode from the drop-down list.

Escalation Frequency

Mandatory

Select the frequency at which the escalation is to be applied, from the values in the drop-down list. If the Start Date has been specified, the frequency is mandatory and must be specified.

Escalation Value

Mandatory’

Specify the escalation amount that is to be applied.

Asset Allocation Details :

Fund ID

Mandatory

All the funds mapped for the selected product are displayed in the option list. Select funds FROM which you are moving the investment amount.

Units/Ratio

Numeric, Mandatory

Specify the percentage of the amount that must be invested in each of the selected funds. The sum of all such percentages must add up to 100, and not fall below or exceed it. The percentages specified here must not be fractional. Typically, this field is only applicable for transactions for which the Transaction Mode is ‘Percentage’.

Note

If you have specified the investment amounts in each fund, the investment ratios are com­puted and displayed here, and this field is locked.

The latest investment ratio applicable for the Policy is displayed here when the form is opened. These values can be amended, and you can specify the required percentages.

Switch Asset Allocation Details

Capture the funds INTO which the investment amount is being moved, in the ‘Switch Asset Allocation’ section:

Fund ID

Mandatory

All the funds mapped for the selected product are displayed in the option list. Select funds INTO which you are moving the investment amount.

Units/Ratio

Numeric, Mandatory

Specify the percentage of the amount that must be invested in each of the selected funds. The sum of all such percentages must add up to 100, and not fall below or exceed it. The percentages specified here must not be fractional. Typically, this field is only applicable for transactions for which the Transaction Mode is ‘Percentage’.

Note

If you have specified the investment amounts in each fund, the investment ratios are com­puted and displayed here, and this field is locked.

The latest investment ratio applicable for the Policy is displayed here when the form is opened. These values can be amended, and you can specify the required percentages.

3.1.14 Initial Load Override Details Button

You can override or alter the value of any load (including derived loads, if any) mapped to the selected fund in the Initial Load Override Details screen which is invoked by clicking on the initial load override button in the Policy Maintenance Details screen.

Initial Load Override Details

Load ID

Display Only

The ID of the load that has been mapped to the fund is displayed here. The load ID is displayed as a link. To view details of the load, click the ID link.

If a derived load has been mapped, it is also displayed here and can be overridden.

Change Type

Optional

When you override or alter a load at the time of entering a transaction, you can effect the change in any of the following ways:

Group ID

Display, Mandatory

Displays the Group ID.

Change Value

Numeric, Optional

Specify the altered return value for the allocation time load that you are overriding.

Txn Type

Display, Mandatory

This displays the transaction type.

Ref Type

Display, Mandatory

This displays the reference type.

3.1.15 Premium Load Override Button

You can override or alter the value of load applied on premium payment mapped to the selected fund. You can do so in the Load Override Details screen which is invoked when you click on the Load Override Details button in the Policy Maintenance Details screen.

Load ID

Display Only

The ID of the load that has been mapped to the fund is displayed here. The load ID is displayed as a link. To view details of the load, click the ID link.

If a derived load has been mapped, it is also displayed here and can be overridden.

Group ID

Display, Mandatory

Displays the group ID.

Change Type

Optional

When you override or alter a load at the time of entering a transaction, you can effect the change in any of the following ways:

Change Value

Numeric, Optional

Specify the altered return value for the allocation time load that you are overriding.

Txn Type

Display, Mandatory

This displays the transaction type.

Ref Type

Display, Mandatory

This displays the reference type.

3.1.16 Annuity Load Override Button

You can override or alter the value of load applied on annuity amount towards the Policy mapped to the selected fund.

You can do so in the Load Override Details screen which is invoked when you click on the Load Override Details button in the Policy Maintenance Details screen.

Load ID

Display Only

The ID of the load that has been mapped to the fund is displayed here. The load ID is displayed as a link. To view details of the load, click the ID link.

If a derived load has been mapped, it is also displayed here and can be overridden.

Group ID

Optional

Displays the group ID.

Change Type

Optional

When you override or alter a load at the time of entering a transaction, you can effect the change in any of the following ways:

Change Value

Numeric, Optional

Specify the altered return value for the allocation time load that you are overriding.

Txn Type

Display, Mandatory

This displays the transaction type.

Ref Type

Display, Mandatory

This displays the Reference Type.

3.1.17 Switch Load Override Button

You can override or alter the value of load applied on the load mapped to the selected fund. You can do so in the Recurring Switch Load Details screen which is invoked when you click on the Recurring Switch Load Details‘ button in the Policy Maintenance Details screen.

Load ID

Display Only

The ID of the load that has been mapped to the fund is displayed here. The load ID is displayed as a link. To view details of the load, click the ID link.

If a derived load has been mapped, it is also displayed here and can be overridden.

Group ID

Display, Mandatory

Displays the Group ID.

Change Type

Optional

When you override or alter a load at the time of entering a transaction, you can effect the change in any of the following ways:

Change Value

Numeric, Optional

Specify the altered return value for the allocation time load that you are overriding.

Txn Type

Display, Mandatory

This displays the Transaction Type.

Ref Type

Display, Mandatory

This displays the Reference Type.

3.1.18 Add Info Button

Click on this link to enter any additional information that you wish. You should have defined an additional information head along with valid values, use the Additional Information Maintenance screen, in order to be able to enter additional information.

Add Info screen is invoked when you click on the Add Info button in the Policy Maintenance Details screen.

Other Info Field

Enter the information in this field.

Field Value

Enter the valid value which is defined in the add info maintenance.

3.1.19 Saving Information Entered

When you have entered all the mandatory information, click ‘Ok’ button.

The following message will be displayed:

The system displays the following confirmation message “Record Successfully Saved”

This indicates the record has been saved. Click ‘Ok’ button.

3.1.20 Creating Future-dated Rules for Policies

You can create a future-dated rule by copying a policy and making changes to the new rule with a Rule Effective Date in the future. The rule will become active on the ‘Rule Effective Date’. On this date, the system will mark the new rule as the latest rule and disregard the old rules for the policy. The system will allow you to create only one future-dated rule for a policy and on a given date only one rule will be active.

You can amend future-dated rule details including the Rule effective Date and also close an existing future-dated rule. In case, you wish to re-open a future-dated rule, the system will allow it only if there is no other future-dated rule maintained in the system for the policy.

3.1.21 Processing Back Data Propagation for Transactions

You can correct erroneous transactions as well as enter those that have been missed out and compute the effect these have on the current holdings of the unit holder through the back data propagation process. To facilitate this propagation process, two schemas are used – the business (or normal) schema and the report schema. You are required to enter the correct data in the business schema for the required transactions and select these for propagation, again from the business schema. The transactions will be simulated in the report schema and the results can be viewed in the business schema.

Refer the chapter ‘Back Data Propagation’ for more details on the back data propagation process

3.2 Policy Maintenance Summary Screen

This section contains the following topics:

3.2.1 Retrieving Policy in Policy Maintenance Screen

You can retrieve a previously entered record in the Summary screen, as follows:

You can invoke the ‘Policy Maintenance Summary’ screen by typing ‘LESPLAN’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

Specify any or all of the following details in the Policy Maintenance Summary screen:

  1. Select the status of the record in the Authorized field. If you choose the “Blank Space” option, then all the records are retrieved.
  2. Select the status of the record in the open field. If you choose the “Blank Space” option, then all the records are retrieved.

After you have specified the required details, click ‘Search’ button. All records with the specified details are retrieved and displayed in the lower portion of the screen.

Note

You can also retrieve the individual record detail from the detail screen by doing query in the following manner:

You can perform Edit, Delete, Amend, Authorize, Reverse, Confirm operation by selecting from the Action list.

You can also search the record by using combination of % and alphanumeric value.

Example

You can search the record for Product Number by using the combination of % and alphanumeric value as follows:-

3.2.2 Editing Policy

You can modify the details of a record that you have already entered into the system, provided it has not been subsequently authorized. You can perform this operation as follows:

  1. Invoke the Policy Maintenance Summary screen from the Browser.
  2. Select the status of the record that you want to retrieve for modification in the Authorization Status field. You can only modify records that are unauthorized. Accordingly, choose the Unauthorized option from the drop down list.
  3. Specify any or all of the details of the record in the corresponding fields on the screen to retrieve the record that is to be modified. All unauthorized records with the specified details are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you want to modify in the list of displayed records. The Policy Maintenance Detail screen is displayed.
  5. Select Unlock Operation from Action list to modify the record. Modify the necessary information
  6. Click Save to save your changes. The Policy Maintenance Detail screen is closed and the changes made are reflected in the Policy Maintenance Summary screen.

3.2.3 Viewing Policy

To view a Policy you have previously entered, you must retrieve the same in the Policy Maintenance Summary screen, as follows:

  1. Invoke the Summary Screen from the Browser.
  2. Select the status of the Policy that you want to retrieve for viewing in the Authorization Status field. You can also view all records that are either unauthorized or authorized only, by choosing the Unauthorized/ Authorized option.
  3. Specify any or all of the details of the records in the corresponding fields on the screen, and click ‘Search’ button. All records with the specified details are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you want to view in the list of displayed records, in the lower portion of the screen. The Policy Maintenance screen is opened in view mode.

3.2.4 Deleting Policy

You can delete only unauthorized records in the system.

To delete a record that you have previously entered, you must retrieve the same in the Policy Maintenance Summary screen, as follows:

  1. Invoke the Policy Maintenance Summary screen from the browser.
  2. Select the status of the record that you want to retrieve for deletion.
  3. Specify any or all of the details of the record in the corresponding fields on the screen, and click ‘Search’ button. All records with the specified details are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you want to delete in the list of displayed records, in the lower portion of the screen. The Policy Maintenance Detail screen is opened in View mode.
  5. Select Delete operation from the Action list. The system prompts you to confirm the deletion, and the record is deleted physically from the system database.

3.2.5 Authorizing Policy

An unauthorized record must be authorized in the system for it to be processed.

To authorize a record, you must first retrieve the same in the Policy Maintenance Summary screen.

  1. Invoke the Policy Maintenance Summary screen from the Browser.
  2. Select the status of the record that you want to retrieve for authorization. Typically, choose the Unauthorized option from the drop down list.
  3. Specify any or all of the details of the record in the corresponding fields on the screen. Click ‘Search’ button. All records with the specified details that are pending authorization are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you wish to authorize. The Policy Maintenance Detail screen is opened in View mode.
  5. Select Authorize operation from Action list.

When the checker authorizes a record, details of validations, if any, that were overridden by the maker of the record during the Save operation, are displayed. If any of these overrides results in an error, the checker must reject the transaction.

3.2.6 Amending Policy

After a record is authorized, it can be modified using the Unlock operation from Action list. To make changes to a record after authorization, you must invoke the Unlock operation which is termed as Amend Operation.

  1. Invoke the Policy Maintenance Summary screen from the Browser.
  2. Select the status of the record that you wish to retrieve for amendment. You can only amend records that are authorized.
  3. Specify any or all of the details of the record in the corresponding fields on the screen. All records with the specified details are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you want to amend. The Policy Maintenance screen will be displayed in Amendment mode. Click the Unlock operation from the Action list to amend the record.
  5. Amend the necessary information. Click the Save button to save your changes.

3.2.7 Authorizing Amended Policy

An amended policy must be authorized for the amendment to be made effective in the system.

Authorization of amended records can only be done from Fund Manager Module and Agency branch Module. The process of authorization is subsequently the same as that for normal transactions.

3.2.8 Reversing Policy

You can reverse a policy that you have already entered into the system, provided it has not been subsequently authorized. You can perform this operation as follows:

  1. Invoke the Policy Maintenance Summary screen from the browser.
  2. Select the status of the record that you want to retrieve for reversal.
  3. Specify any or all of the details of the record in the corresponding fields on the screen, and click ‘Search’ button. All records with the specified details are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you want to reverse in the list of displayed records, in the lower portion of the screen. The Policy Maintenance Detail screen is opened in View mode.
  5. Select Reverse operation from the Action list. The system prompts you to confirm the reversal of record.
  6. Click the Save button to save your changes.

3.2.9 Authorizing Reversal of Policy

A reversed policy must be authorized. The process of authorization is subsequently the same as that for normal transactions.

3.3 Ratio Percentage Maintenance

Fund Products and Policies, invested by the client can be divided into components. The components can be singular or a combination of two or more components. According to the Prudential Investment Guidelines these Funds are classified as components or combination of the same, these can be invested according to a specified percentage.

For example; a fund investment of F1 can be allocated under the following ratios of components:

The cumulative investment ratio would add up to the total Fund Investment F1.

You have to maintain the rules for Prudential Investment Guidelines and Forex compliance in accordance with this asset allocation. You can do so by invoking the Prudential Investment Guidelines/ Forex Compliance Screen from the browser, and click on Detailed.

Refer to the chapter ‘Prudential Investment Guidelines and Forex compliance (PIGS)’ in LEP User Manual for further details on UM.

3.4 Policy Transaction Enrichment

This section contains the following topics:

3.4.1 Invoking the Policy Transaction Exchange Rate Enrichment

The initial investment for a policy can be deposited in multiple currencies. If the exchange rate is not available while saving the policy, the policy is incompletely generated and hence the underlying UT transactions are also generated incompletely. Till the policy is allocated, it can be enriched. The enrichment can be done using the ‘Policy Transaction Exchange Rate Enrichment’ screen.

All the settlements of a policy transaction need to be enriched before the policy transaction itself can be enriched. When the settlements are being enriched, the system will compute the policy transaction amount and asset allocation ratio. Subsequently, when the policy transaction is enriched, the system will convert the policy transaction amount in terms of the policy base currency.

To invoke the ‘Policy Transaction Exchange Rate Enrichment’ screen, type ‘LEDTXNEE’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

You can specify the following details in this screen:

Enrichment Option

Alphanumeric; Optional

Select the enrichment option from the adjoining drop-down list. The options are:

Product ID

Alphanumeric; Optional

Specify the Product ID for which you wish to enrich transactions.

Policy Number

Alphanumeric; Optional

Specify the policy number for which enrichment is required.

Policy Txn Number

Specify the policy transaction number for which enrichment is required.

Source ID

Specify the Source ID for which enrichment is required.

Source Name

The system defaults the name for the Source ID selected..

From Date

Specify the date from which enrichment is required.

To Date

Specify the date till which enrichment is required.

After you specify the required details, press ‘OK’. The system will display all the matching records in the ‘Exchange Rate Enrichment Details’ grid

3.4.1.1 Exchange Rate Enrichment Details

In this grid, the system will display the following values for the records matching the criteria specified above.

If you have selected ‘Policy Settlement’ as the enrichment option, then all settlement details for the selected policy are available and the exchange rates can be enriched from settlement currency to transaction currency. If ‘Policy Transaction’ has been selected as the enrichment option, then exchange rate details to convert the policy transaction amount into policy base currency can be changed (after the settlements of the policy transactions have been enriched).

Note

If you have not changed the ‘FX Deal Date’ and ‘FX Value Date’, that is, the dates are cur­rent dates, then the LEP policy settlement and policy transaction will not be available for enrichment on the next day. This is because clearance would have been done during EOD.

If you change the ‘FX Deal Date’ and ‘FX Value Date’ to the next day, then policy settlement and policy transaction will be available for enrichment the next day.

3.5 Interest Rate Details Maintenance

This section contains the following topics:

3.5.1 Invoking FCIS Interest Rate Maintenance Screen

The interest rate that is to be used for interest calculation is maintained using the Interest Rate Maintenance screen. In order to arrive at the rate of interest, you have to maintain the effective date, transaction currency details and Interest Rate of the transaction.

You can invoke the ‘FCIS Interest Rate Maintenance Detail’ screen by typing ‘UTDINRMN’ n the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

The following screen is invoked:

Select ‘New’ from the Actions menu in the Application tool bar or click new icon to enter the details of the Interest Rate Maintenance.

You can specify the following fields in this screen:

Effective Date, DD/MM/YYYY,

Numeric , Mandatory

Specify the date the system should consider for calculating the rate of interest.

Interest Rate (%)

Mandatory

Specify the Interest Rate for the currency you have selected.

Translation Currency

Mandatory

Select the currency of transaction from the option list.

Currency Name

Display

Displays the name of the Translation Currency selected.

3.6 Interest Rate Maintenance Summary Screen

This section contains the following topics:

3.6.1 Retrieving Interest Rate in Interest Rate Maintenance Screen

You can retrieve a previously entered record in the Summary screen, as follows:

You can invoke the ‘FCIS Interest Rate Maintenance Summary’ screen by typing ‘UTSINRMN’ in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow button.

Specify any or all of the following details in the Interest Rate Maintenance Summary screen:

After you have specified the required details, click ‘Search’ button. All records with the specified details are retrieved and displayed in the lower portion of the screen.

Note

You can also retrieve the individual record detail from the detail screen by doing query in the following manner:

You can perform Edit, Delete, Amend, Authorize, Reverse, Confirm operation by selecting from the Action list.

You can also search the record by using combination of % and alphanumeric value.

Example

You can search the record for Product ID by using the combination of % and alphanumeric value as follows:-

3.6.2 Editing Interest Rate

You can modify the details of a record that you have already entered into the system, provided it has not been subsequently authorized. You can perform this operation as follows:

  1. Invoke the Interest Rate Maintenance Summary screen from the Browser.
  2. Select the status of the record that you want to retrieve for modification in the Authorization Status field. You can only modify records that are unauthorized. Accordingly, choose the Unauthorized option from the drop down list.
  3. Specify any or all of the details of the record in the corresponding fields on the screen to retrieve the record that is to be modified. All unauthorized records with the specified details are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you want to modify in the list of displayed records. The Interest Rate Maintenance Detail screen is displayed.
  5. Select Unlock Operation from Action list to modify the record. Modify the necessary information
  6. Click Save to save your changes. The Interest Rate Maintenance Detail screen is closed and the changes made are reflected in the Interest Rate Maintenance Summary screen.

3.6.3 Viewing Interest Rate

To view an Interest Rate you have previously entered, you must retrieve the same in the Interest Rate Maintenance Summary screen, as follows:

  1. Invoke the Summary Screen from the Browser.
  2. Select the status of the Interest Rate that you want to retrieve for viewing in the Authorization Status field. You can also view all records that are either unauthorized or authorized only, by choosing the Unauthorized/ Authorized option.
  3. Specify any or all of the details of the records in the corresponding fields on the screen, and click ‘Search’ button. All records with the specified details are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you want to view in the list of displayed records, in the lower portion of the screen. The Interest Rate Maintenance screen is opened in view mode.

3.6.4 Deleting Interest Rate

You can delete only unauthorized records in the system.

To delete a record that you have previously entered, you must retrieve the same in the Interest Rate Maintenance Summary screen, as follows:

  1. Invoke the Interest Rate Maintenance Summary screen from the browser.
  2. Select the status of the record that you want to retrieve for deletion.
  3. Specify any or all of the details of the record in the corresponding fields on the screen, and click ‘Search’ button. All records with the specified details are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you want to delete in the list of displayed records, in the lower portion of the screen. The Interest Rate Maintenance Detail screen is opened in View mode.
  5. Select Delete operation from the Action list. The system prompts you to confirm the deletion, and the record is deleted physically from the system database.

3.6.5 Authorizing Interest Rate

An unauthorized record must be authorized in the system for it to be processed.

To authorize a record, you must first retrieve the same in the Interest Rate Maintenance Summary screen.

  1. Invoke the Interest Rate Maintenance Summary screen from the Browser.
  2. Select the status of the record that you want to retrieve for authorization. Typically, choose the Unauthorized option from the drop down list.
  3. Specify any or all of the details of the record in the corresponding fields on the screen. Click ‘Search’ button. All records with the specified details that are pending authorization are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you wish to authorize. The Interest Rate Maintenance Detail screen is opened in View mode.
  5. Select Authorize operation from Action list.

When the checker authorizes a record, details of validations, if any, that were overridden by the maker of the record during the Save operation, are displayed. If any of these overrides results in an error, the checker must reject the transaction.

3.6.6 Amending Interest Rate

After a record is authorized, it can be modified using the Unlock operation from Action list. To make changes to a record after authorization, you must invoke the Unlock operation which is termed as Amend Operation.

  1. Invoke the Interest Rate Maintenance Summary screen from the Browser.
  2. Select the status of the record that you wish to retrieve for amendment. You can only amend records that are authorized.
  3. Specify any or all of the details of the record in the corresponding fields on the screen. All records with the specified details are retrieved and displayed in the lower portion of the screen.
  4. Double click the record that you want to amend. The Interest Rate Maintenance screen will be displayed in Amendment mode. Click the Unlock operation from the Action list to amend the record.
  5. Amend the necessary information. Click the Save button to save your changes.

3.6.7 Authorizing Amended Interest Rate

An amended Interest Rate must be authorized for the amendment to be made effective in the system.

Authorization of amended records can only be done from Fund Manager Module and Agency branch Module. The process of authorization is subsequently the same as that for normal transactions.

3.6.8 Checking for Duplicate Transactions

At the time of saving the transaction details, the system checks for the Policy Number -Transaction Type combination. If there are any existing transactions for the same combination that has been captured in the past ‘n’ days, the system will display you an warning message if you try to save another transaction with the same combination within those ‘n’ days. You need to specify this ‘n’ number of days which the system has to consider for validation.

The system performs the duplicate transaction validation:

Maintaining Parameter Code for Displaying Warning Messages

You need to maintain the parameter code “DUPWARNINGLAG” and the number of days as the Parameter Value in the Parameter Setup screen.

Refer to the chapter “Maintaining System Parameters” for further details on maintaining the parameters.