LEP Transactions User Manual

LEP Transactions User Manual
LEP Transaction User Guide
Oracle FLEXCUBE Investor Servicing
Release 12.0.4.0.0
Part Number E57474-01
September 2014
Table of Contents
1.
About This Manual ................................................................................... 1-1
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
2.
1-1
1-1
1-1
1-1
1-2
1-2
1-2
1-2
1-3
1-4
UH Deal Maintenance .............................................................................. 2-1
2.1
3.
Introduction..............................................................................................................
Related Documents .................................................................................................
Audience..................................................................................................................
Organization ............................................................................................................
Conventions Used in this Manual ............................................................................
1.5.1 General Conventions..................................................................................
1.5.2 Keyboard Conventions ...............................................................................
Glossary of Icons.....................................................................................................
Abbreviations and Acronyms...................................................................................
Getting Help.............................................................................................................
Introduction.............................................................................................................. 2-1
Policy ........................................................................................................ 3-1
3.1
3.2
3.3
3.4
3.5
3.6
3.7
Introduction.............................................................................................................. 3-1
Creating and Saving Policy ..................................................................................... 3-1
3.2.1 Invoking Screen.......................................................................................... 3-1
3.2.2 Fields in Policy Maintenance Screen.......................................................... 3-2
3.2.3 Saving Information Entered ...................................................................... 3-47
3.2.4 Creating Future-dated Rules for Policies.................................................. 3-47
3.2.5 Processing Back Data Propagation for Transactions ............................... 3-47
Policy Maintenance Summary Screen................................................................... 3-48
3.3.1 Retrieving Policy in Policy Maintenance Screen ...................................... 3-48
3.3.2 Editing Policy ............................................................................................ 3-49
3.3.3 Viewing Policy .......................................................................................... 3-49
3.3.4 Deleting Policy.......................................................................................... 3-50
3.3.5 Authorizing Policy ..................................................................................... 3-50
3.3.6 Amending Policy....................................................................................... 3-50
3.3.7 Authorizing Amended Policy..................................................................... 3-51
3.3.8 Reversing Policy....................................................................................... 3-51
3.3.9 Authorizing Reversal of Policy.................................................................. 3-51
Maintaining Ratio Percentage .............................................................................. 3-51
Enriching Policy Transactions ............................................................................... 3-52
3.5.1 Fields in the Policy Transaction Exchange Rate Enrichment Screen....... 3-52
Maintaining Interest Rate Details........................................................................... 3-54
3.6.1 Invoking Screen........................................................................................ 3-54
3.6.2 Fields in Policy Maintenance Screen........................................................ 3-55
Interest Rate Maintenance Summary Screen........................................................ 3-55
3.7.1 Retrieving Interest Rate in Interest Rate Maintenance Screen ................ 3-55
3.7.2 Editing Interest Rate ................................................................................. 3-56
3.7.3 Viewing Interest Rate ............................................................................... 3-57
3.7.4 Deleting Interest Rate .............................................................................. 3-57
3.7.5 Authorizing Interest Rate .......................................................................... 3-57
3.7.6 Amending Interest Rate ........................................................................... 3-58
3.7.7 Authorizing Amended Interest Rate ......................................................... 3-58
3.7.8 Checking for Duplicate Transactions........................................................ 3-58
4.
Policy Transactions – Top Up ................................................................ 4-1
4.1
4.2
4.3
5.
Policy Transactions – Switch ................................................................. 5-1
5.1
5.2
5.3
6.
Introduction.............................................................................................................. 4-1
Top Up Transactions ............................................................................................... 4-1
4.2.1 Entering Top up Transaction ...................................................................... 4-1
4.2.2 Invoking screen .......................................................................................... 4-1
4.2.3 Fields in Policy Transaction TOPUP Screen .............................................. 4-2
4.2.4 Retrieving Unit Holder Deal in Unitholder Deal Screen .............................. 4-6
4.2.5 Editing Unit Holder Deal ............................................................................. 4-7
4.2.6 Viewing Unit Holder Deal............................................................................ 4-8
4.2.7 Deleting Unit Holder Deal ........................................................................... 4-8
4.2.8 Authorizing Unit Holder Deal ...................................................................... 4-8
4.2.9 Amending Unit Holder Deal ........................................................................ 4-9
4.2.10 Saving Information Entered ...................................................................... 4-19
4.2.11 Processing Back Data Propagation for Transactions ............................... 4-20
Policy Transaction Topup Summary Screen ......................................................... 4-20
4.3.1 Retrieving Topup Transaction in Policy Topup Screen ............................ 4-20
4.3.2 Editing TopUp Transaction ....................................................................... 4-21
4.3.3 Viewing TopUp Transaction ..................................................................... 4-22
4.3.4 Deleting TopUp Transaction..................................................................... 4-22
4.3.5 Authorizing TopUp Transaction ................................................................ 4-22
4.3.6 Amending TopUp Transaction.................................................................. 4-23
4.3.7 Authorizing Amended Transaction TopUp................................................ 4-23
4.3.8 Reversing TopUp Transaction.................................................................. 4-23
Introduction.............................................................................................................. 5-1
Switch Transactions ................................................................................................ 5-1
5.2.1 Entering Switch Transaction....................................................................... 5-1
5.2.2 Invoking Screen.......................................................................................... 5-1
5.2.3 Fields in Policy Transaction Switch Screen................................................ 5-2
5.2.4 Retrieving Unit Holder Deal in Unitholder Deal Screen .............................. 5-5
5.2.5 Editing Unit Holder Deal ............................................................................. 5-6
5.2.6 Viewing Unit Holder Deal............................................................................ 5-6
5.2.7 Deleting Unit Holder Deal ........................................................................... 5-7
5.2.8 Authorizing Unit Holder Deal ...................................................................... 5-7
5.2.9 Amending Unit Holder Deal ........................................................................ 5-7
5.2.10 Un-Allotted Fee Transaction..................................................................... 5-16
5.2.11 Saving Information Entered ...................................................................... 5-17
5.2.12 Processing Back Data Propagation for Transactions ............................... 5-17
Policy Transaction Switch Summary Screen......................................................... 5-18
5.3.1 Retrieving Transaction Switch in Policy Transaction Switch Screen ........ 5-18
5.3.2 Editing Transaction Switch ....................................................................... 5-19
5.3.3 Viewing Transaction Switch...................................................................... 5-19
5.3.4 Deleting Transaction Switch ..................................................................... 5-20
5.3.5 Authorizing Policy Switch ......................................................................... 5-20
5.3.6 Amending Transaction Switch .................................................................. 5-20
5.3.7 Authorizing Amended Transaction Switch ................................................ 5-21
5.3.8 Reversing Transaction Switch .................................................................. 5-21
Policy Transactions – Surrender ............................................................ 6-1
6.1
Introduction.............................................................................................................. 6-1
6.2
6.3
7.
Policy Status Change .............................................................................. 7-1
7.1
7.2
7.3
8.
Introduction..............................................................................................................
Changing Status of Policy .......................................................................................
7.2.1 Invoking Screen..........................................................................................
7.2.2 Fields in Policy Status Change Screen ......................................................
7.2.3 Saving Information Entered ........................................................................
Policy Status Change Summary Screen .................................................................
7.3.1 Retrieving Policy Status in Policy Status Change Screen ..........................
7.3.2 Editing Policy Status Change .....................................................................
7.3.3 Viewing Policy Status Change....................................................................
7.3.4 Deleting Policy Status Change ...................................................................
7.3.5 Authorizing Policy Status Change ..............................................................
7.3.6 Amending Policy Status Change ................................................................
7.3.7 Authorizing Amended Policy Status Change..............................................
7-1
7-1
7-1
7-2
7-5
7-6
7-6
7-7
7-7
7-7
7-8
7-8
7-8
Cession Maintenance .............................................................................. 8-1
8.1
8.2
8.3
9.
Surrender Transactions ........................................................................................... 6-1
6.2.1 Entering Surrender Transaction ................................................................. 6-1
6.2.2 Invoking Screen.......................................................................................... 6-2
6.2.3 Fields in Policy Transaction Surrender Screen .......................................... 6-2
6.2.4 Saving Information Entered ...................................................................... 6-18
6.2.5 Processing Back Data Propagation for Transactions ............................... 6-19
6.2.6 Automatic Surrender of Policy ................................................................. 6-19
Policy Transaction Surrender Summary Screen ................................................... 6-20
6.3.1 Retrieving Surrender Transaction in Policy Transaction Surrender Screen 6-20
6.3.2 Editing Surrender Transaction.................................................................. 6-21
6.3.3 Viewing Surrender Transaction ................................................................ 6-21
6.3.4 Deleting Surrender Transaction................................................................ 6-22
6.3.5 Authorizing Surrender Transaction........................................................... 6-22
6.3.6 Amending Surrender Transaction............................................................. 6-22
6.3.7 Authorizing Amended Surrender Transaction .......................................... 6-23
6.3.8 Reversing Surrender Transaction............................................................. 6-23
Introduction..............................................................................................................
Creating and Saving Cession ID .............................................................................
8.2.1 Invoking Screen..........................................................................................
8.2.2 Fields in Cession Maintenance Screen ......................................................
8.2.3 Saving Information Entered ........................................................................
Cession Maintenance Summary Screen .................................................................
8.3.1 Retrieving Cession Maintenance in Cession Maintenance Screen ............
8.3.2 Editing Cession Maintenance .....................................................................
8.3.3 Viewing Cession Maintenance ...................................................................
8.3.4 Deleting Cession Maintenance...................................................................
8.3.5 Authorizing Cession Maintenance ..............................................................
8.3.6 Amending Cession Maintenance................................................................
8.3.7 Authorizing Amended Cession Maintenance..............................................
8-1
8-1
8-1
8-2
8-2
8-3
8-3
8-4
8-4
8-4
8-5
8-5
8-5
Policy Cession Maintenance .................................................................. 9-1
9.1
9.2
Introduction..............................................................................................................
Attaching Cession ID to Policy ................................................................................
9.2.1 Invoking Screen..........................................................................................
9.2.2 Fields in Policy Cession Maintenance Screen............................................
9-1
9-1
9-1
9-2
9.3
9.2.3 Saving Information Entered ........................................................................
Policy Cession Summary Screen ............................................................................
9.3.1 Retrieving Policy Cession in Policy Cession Screen ..................................
9.3.2 Editing Policy Cession ................................................................................
9.3.3 Viewing Policy Cession ..............................................................................
9.3.4 Deleting Policy Cession..............................................................................
9.3.5 Authorizing Policy Cession .........................................................................
9.3.6 Amending Policy Cession...........................................................................
9.3.7 Authorizing Amended Policy Cession.........................................................
9-4
9-4
9-4
9-5
9-6
9-6
9-6
9-7
9-7
10. Policy Journal Maintenance ................................................................. 10-1
10.1 Introduction............................................................................................................ 10-1
10.2 Maintaining Journal Entries for Policy ................................................................... 10-1
10.2.1 Invoking Screen........................................................................................ 10-1
10.2.2 Fields in Policy Journal Maintenance Screen........................................... 10-2
10.3 Policy Journal Maintenance Summary Screen...................................................... 10-5
10.3.1 Retrieving Policy Journal Entry in Policy Journal Maintenance Screen ... 10-5
10.3.2 Editing Policy Journal Entry...................................................................... 10-6
10.3.3 Viewing Policy Journal Entry .................................................................... 10-6
10.3.4 Deleting Policy Journal Entry.................................................................... 10-6
10.3.5 Authorizing Policy Journal Entry............................................................... 10-7
10.3.6 Amending Policy Journal Entry................................................................. 10-7
10.3.7 Authorizing Amended Policy Journal Entry .............................................. 10-7
11. Batch Activities ...................................................................................... 11-1
11.1 Introduction............................................................................................................ 11-1
11.2 Sequence of Batch Functions................................................................................ 11-1
11.3 Batch Functions..................................................................................................... 11-2
11.3.1 LEP - Plan Funding Repayment ............................................................... 11-2
11.3.2 LEP - Generate Plan Transactions........................................................... 11-2
11.3.3 LEP - Update Product Fiscal Year............................................................ 11-2
11.3.4 LEP - Update Plan Transaction Allotted Status........................................ 11-2
11.3.5 LEP - Plan Financial Bucket Adjustment .................................................. 11-3
11.3.6 LEP - Plan Annuity 5/20 Validation Process............................................. 11-3
11.3.7 LEP – 120% Rule Support........................................................................ 11-5
11.3.8 LEP – NAV Correction.............................................................................. 11-5
11.3.9 LEP - Set Latest Rule for Product ............................................................ 11-6
11.3.10 LEP - Set Latest Rule for Plan................................................................. 11-6
11.3.11 LEP - Plan Anniversary Value Computation............................................ 11-6
11.3.12 LEP - Plan Annuity Escalations ............................................................... 11-7
11.3.13 LEP - Plan Recurring Switch Escalations................................................ 11-7
11.3.14 LEP - Plan Premium Escalations............................................................. 11-7
11.3.15 LEP - Recurring Plan Annuity Processing ............................................... 11-7
11.3.16 LEP - Recurring Plan Switch Processing ................................................ 11-7
11.3.17 LEP - Recurring Plan Premium Processing............................................. 11-7
11.3.18 LEP - Plan Funding Repayment .............................................................. 11-7
11.3.19 LEP - Generate Plan Redemption Transactions for Periodic Fees ......... 11-7
11.3.20 LEP - Process Plan Surrender ................................................................ 11-7
11.3.21 LEP - BOD Plan Transaction Generations .............................................. 11-8
11.3.22 LEP – Cash Management Switch Process.............................................. 11-8
12. Allocation Details ................................................................................... 12-1
12.1 Allocation Details ...................................................................................................
12.1.1 Entering Allocation Details........................................................................
12.1.2 Invoking Screen........................................................................................
12.1.3 Fields in Allocation Details Screen ...........................................................
12-1
12-1
12-1
12-1
13. Annexure ................................................................................................ 13-1
13.1 Introduction............................................................................................................ 13-1
13.2 Fund Distribution Processing................................................................................. 13-1
14. Function ID Glossary ............................................................................. 14-1
1. About This Manual
1.1
Introduction
Welcome to Oracle FLEXCUBE Investor Services ™, a comprehensive mutual funds
automation software from Oracle Financial Services Software Ltd. ©.
This Oracle FLEXCUBE Investor Services User Manual helps you use the system to achieve
optimum automation of all your mutual fund investor services processes. It contains
guidelines for specific tasks, descriptions of various features and processes in the system and
general information.
1.2
Related Documents
The User Manual is organized in to various parts, each discussing a component of the Oracle
FLEXCUBE Investor Services system.
1.3
Audience
This Fund Manager User Manual is intended for the Fund Administrator users and system
operators in the AMC.
1.4
Organization
This volume of the Fund Manager User manual is organized under the following chapter
sequence:
Chapter 1
About This Manual explains the structure, audience, organization, and
related documents of this manual.
Chapter 2
LEP Transactions – An Overview enables you learn about LEP Transactions.
Chapter 3
LEP Transactions – UH Deal Maintenance explains the deal maintenance.
Chapter 4
LEP Transactions – Policy takes you through the process of entering the
details of a Policy. A reference has been made to the Agency Branch User
Manual. The chapter, to which a reference has been made, will help you
create a Unit Holder in the system. This is to be done before a Policy is
created in the system, as every Policy Holder in the system should be a
valid Unit Holder.
Chapter 5
LEP Transactions – Policy Transaction – Top Up Refer to this chapter for
information on entering Policy Transactions.
Chapter 6
LEP Transactions – Policy Transaction – Switch Refer to this chapter for
information on entering Policy Switch Transactions.
Chapter 7
LEP Transactions – Policy Transaction – Surrender Refer to this chapter
for information on entering Policy Surrender Transactions.
Chapter 8
LEP Transactions – Policy Status Change Refer to this chapter for information on changing the status of a Policy.
1-1
1.5
Chapter 9
LEP Transactions – Cession Maintenance talks about maintaining cessions in the system.
Chapter 10
LEP Transactions – Policy Cession Once you have maintained various
cessions in the system, you may want to attach one to a Policy. Refer to
this chapter for information on the same.
Chapter 11
LEP Transactions – Policy Journal Maintenance Whenever you make an
adjustment to the annuity amount, you need to post it as a policy journal
entry. Refer to this chapter for information on the same.
Chapter 12
LEP Transactions – Batch Functions lists and explains the various End Of
Day (EOD) and Beginning Of Day (BOD) Batch Activities.
Chapter 13
LEP Transactions – Allocation Details explains how to enter and save Allocation Details.
Chapter 14
LEP Transactions – Annexure explains certain procedures that apply to
both, the LEP and UT modules.
Conventions Used in this Manual
Before you begin using this User Manual, it is important to understand the typographical
conventions used in it.
1.5.1
1.5.2
1.6
General Conventions
Convention
Type of Information
Italic type
Functional /foreign terms
Validations for fields on a screen
References to related Headings/Users Manuals
For emphasis
Numbered Bullet
Step by step procedures
Keyboard Conventions
Convention
Type of Information
Keys
All keys of the keyboard are represented in capital letters. For example,
<CTRL>.
Shortcut
keys
All short cut keys are contained in brackets. For example, <ALT+SHIFT>.
Glossary of Icons
This User Manual may refer to all or some of the following icons.
Icons
Function
Exit
1-2
Icons
Function
Add Row
Delete Row
Option List
Refer the Procedures User Manual for further details about the icons.
1.7
Abbreviations and Acronyms
The following acronyms and abbreviations are adhered to in this User Manual:
Abbreviation/
Acronym
Meaning
ADMIN
User Administrator
AGY
The Agency Branch component of the system
AMC
Asset Management Company
BOD
Beginning of Day
CDSC
Contingent Deferred Sales Charge
CGT
Capital Gains Tax
CIF
Customer Information File
EOD
End of Day
EPU
Earnings per unit
FC-IS
Oracle FLEXCUBE Investor Services
FMG
The Fund Manager component of the system
FPADMIN
Oracle FLEXCUBE Administrator
ID
Identification
IHPP
Inflation Hedged Pension Plan
IPO
Initial Public Offering
LEP
Life and Endowment Products
LOI
Letter of Intent
NAV
Net Asset Value
REG
The Registrar component of the system
ROA
Rights of Accumulation
ROI
Return on Investment
1-3
1.8
Abbreviation/
Acronym
Meaning
SI
Standing Instructions
SMS
Security Management System
URL
Uniform Resource Locator
VAT
Value Added Tax
WAUC
Weighted Average Unit Cost
Getting Help
Online help is available for all tasks. You can get help for any function by clicking the help icon
provided or by pressing F1.
1-4
2. UH Deal Maintenance
2.1
Introduction
In some cases, the AMC may wish to offer a special, unique load option to be applied on all
transactions involving a specific CIF Account or unit holder. This could also be at the request
of the investor. This special load option would override the existing load option mapped to the
fund or load group. Such a load option is called a ‘deal’ for an investor.
You can set up a deal for an investor for a particular Product. You have the option of selecting
a specific fund under the Product to which the load is to be applied or applying the load to the
Product, in which case, the deal will apply to all funds mapped to it. The ‘Unitholder Deal
Maintenance Detail’ screen is where a deal is setup. You can invoke the ‘Unitholder Deal
2-1
Maintenance Detail’ screen by typing ‘UTDUHDEL’ in the field at the top right corner of the
Application tool bar and clicking on the adjoining arrow button.
Refer to the chapter “Setting Up Investor Preferences” in the User Manual for further
information.
2-2
3. Policy
3.1
Introduction
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.
3.2
Creating and Saving Policy
The 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.
3.2.1

Invoke the Policy Maintenance screen

Enter information in the Policy Maintenance screen.

Save the information entered.
Invoking Screen
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.
3-1
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 Policy Maintenance.
3.2.2
Fields in Policy Maintenance 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
–
You have the option of using the Find Options screen to enter the CIF Number and
Unit Holder ID. This screen is invoked when you click on the option list.
–
Once you have entered the Unit holder ID, the CIF Number and the Unit Holder
Name will get updated.
3-2
3.2.2.1
Specifying Policy Information
When you click ‘Policy Information’ link, the following screen is invoked:
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.
3-3
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.
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:
3-4
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:

A transaction will be created for the initial investment amount you have entered.

A transaction will also be generated for the first premium amount, at EOD.
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.
3-5
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:

Legal

Advised Business

Execution Only
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.
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Description_ Funding Frequency
Display
The system displays the description of the specified funding frequency.
Policy Creation Type
Optional
Select the Policy Creation Type from the drop-down list.
Description_ Policy Creation Type
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.
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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.
3.2.2.2
Specifying Policy Details
When you click ‘Policy Details’ tab, the following screen is invoked:
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.
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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:

Retirement Age

Minimum Tenor
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.
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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.
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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.
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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:
–
You have selected the option ‘Yes’ against the field ‘Retirement Features
Supported?’
–
You have selected the option ‘Retirement Age’ against the field ‘Maturity Date Basis’
Life Expectancy
Optional
User can enter life expectancy.
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Policy Term (Years)
Optional
You can enter the policy term.
3.2.2.3
Specifying Additional Details
When you click ‘Additional Details’ link, the following screen is invoked:
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.
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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:

Option not allowed: Provisionally allotted units should not be considered while
processing 100% outflow transactions.

Allowed – Default checked: Provisionally allotted units should be considered while
processing 100% outflow transactions by default.

Allowed – Default unchecked: Provisionally allotted units will not be considered while
processing 100% outflow transactions by default. However, you can check this option
while performing transactions.
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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:

Option not allowed: Freeze held/reinvestment units should not be considered while
processing 100% outflow transactions.

Allowed – Default checked: Freeze held/reinvestment units should be considered while
processing 100% outflow transactions by default.

Allowed – Default unchecked: Freeze held/reinvestment units will not be considered
while processing 100% outflow transactions by default. However, you can check this
option while performing transactions.
Remarks
Optional
You may enter any remarks on the Policy if you wish.
Refer to the chapter “Maintaining System Parameters” for more details.
3.2.2.4
Specifying Intermediary Details
You will need to capture details of the intermediaries attached to the initial investment. When
you click ‘Intermediary Details’ link, the following 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.
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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.
3.2.2.5
Specifying Beneficiary Details
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 following 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.
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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.
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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.
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3.2.2.6
Specifying Constituent Details
When you click ‘Constituent Details’ link, the following 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.
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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.
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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.
3.2.2.7
Specifying Projected Return Value Details
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".
Clicking on the ‘Projected Return Value’ link invokes the following 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.
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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.
3.2.2.8
Asset Allocation Details
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.
3-22
When you click ‘Asset Allocation’ button, the following 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
–
If you have checked the ‘Include Interest in Investment’ box, then the total of
settlement and interest amounts for each currency needs to be equal to the asset
allocation transaction amount for the currency.
–
If the ‘Include Interest in Investment’ box has not been checked, then sum of currency wise settlement amount should be equal to the asset allocation transaction
amount for the currency.
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
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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.
3-24
KIID Compliant
Optional
Select if the policy is KIID compliant or not from the adjoining drop-down list. Following are
the options available:
3.2.2.9

Yes

No
Payment Details Section
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.
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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:

Source ID

Exchange Rate Applied

Transaction Currency Amount

Override Exchange Rate

FX Deal Date

FX Value Date
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.
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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:


360 days
365 days
When you click the ‘Clear’ button, the interest-related details will be cleared.
3.2.2.10 Premium Details Section
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.
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When you click on the ‘Premium Details’ button, the following 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.
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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:
–
Escalation End Date can be amended only it is greater than the System Date
–
Escalation Start Date and Escalation Frequency can be amended only if escalation
has not been applied on the policy
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:
 Legal

Advised Business

Execution Only
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Payment Mode
Mandatory
Select the mode of the premium payment.
You have the following options:

Cheque

Transfer
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.
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.
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.
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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.
3.2.2.11 Annuity Details Section
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.
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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:

A-Active

C-Cancel

N-Not Started
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
P-Pause

S-Stop
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:
–
Escalation End Date can be amended only it is greater than the System Date
–
Escalation Start Date and Escalation Frequency can be amended only if escalation
has not been applied on the policy
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.
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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:

Type 1: In this type, the annuity is a single life annuity payable until the death of the
annuitant.

Type 2: In this type, the annuity is a joint life and last survivor annuity and is payable
until the last death of both annuity and spouse, that is, while at least one of the annuitant
or spouse is alive.
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
Type 3: The annuity is a joint life and last survivor annuity where the amount of the
annuity reduces on the first death of annuitant or spouse. The percentage reduction is
specified by the annuitant at the outset.

Type 4: The annuity is a joint life and last survivor annuity where the amount of the
annuity reduces on the male death. The percentage reduction is specified by the
annuitant at the outset.
Asset Allocation Type
Mandatory
Select the type of asset allocation from the drop down list provided. The options available are:

User Input

Policy Portfolio
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.
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.
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Bank Name
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.
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.
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.
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.
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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.
3.2.2.12 Recurring Switch Details Section
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.
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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:

A-Active

C-Cancel

N-Not Started

P-Pause

S-Stop
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:
–
Escalation End Date can be amended only it is greater than the System Date
–
Escalation Start Date and Escalation Frequency can be amended only if escalation
has not been applied on the policy
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.
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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
–
If you have selected ‘Yes’, Escalation Details will not be applicable.
–
If you have selected ‘Yes’, the SI Status codes ‘PAUSED’ and ‘STOPPED’ are not
applicable.
–
If you have selected ‘Yes’, the system will allow you to move the fund amount of one
fund to into another or from one fund to more than one fund. However movement
from multiple funds to one fund or from multiple funds to multiple funds is not
permitted.
–
If you have selected ‘Yes’, you will not be allowed to enter more than one ‘From’
fund in the Recurring Switch Asset Allocation Details screen (which is invoked by
clicking the Asset Allocation link).
–
During amendment of a Policy you will not be allowed to change the preference you
have specified for a phase-in. For example, If you have selected ‘Yes’ in Phase-In,
you will not be allowed to uncheck it and vice-versa.
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.
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Transaction Category
Mandatory
Select the transaction category from the adjoining drop-down list. Following are the options
available:
 Legal

Advised Business

Execution Only
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’.
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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.
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3.2.2.13 Initial Load Override Details Section
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:

Discount (reducing the load return value in all the slabs)

Increase (increasing the load return value in all slabs)

Return Value (assigning an altered return value that will be applicable to all the loads)
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.
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Txn Type
Display, Mandatory
This displays the transaction type.
Ref Type
Display, Mandatory
This displays the reference type.
3.2.2.14 Premium Load Override Section
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:

Discount (reducing the load return value in all the slabs)

Increase (increasing the load return value in all slabs)
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
Return Value (assigning an altered return value that will be applicable to all the loads)
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.
3.2.2.15 Annuity Load Override Section
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.
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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:

Discount (reducing the load return value in all the slabs)

Increase (increasing the load return value in all slabs)

Return Value (assigning an altered return value that will be applicable to all the loads)
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.
3.2.2.16 Switch Load Override Section
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.
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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:

Discount (reducing the load return value in all the slabs)

Increase (increasing the load return value in all slabs)

Return Value (assigning an altered return value that will be applicable to all the loads)
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.
3.2.2.17 Add Info
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.
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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.
3.2.3
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.
3.2.4
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.
3.2.5
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,
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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
3.3
Policy Maintenance Summary Screen
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. The
following screen is displayed:
3.3.1
Retrieving Policy in Policy Maintenance Screen
You can retrieve a previously entered record in the Summary screen, as follows:
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.

Policy Number

Policy Reference Number

Policy Start Date

Maturity Date

Policy End Date

Latest Rule
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.
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Note
You can also retrieve the individual record detail from the detail screen by doing query in
the following manner:
–
Press F7.
–
Input the Product Number.
–
Press F8.
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:-
3.3.2

Search by A%: System will fetch all the records whose Product Number starts from
Alphabet ‘A’. For example, AGC17, AGVO6, AGC74 etc.

Search by %7: System will fetch all the records whose Product Number ends by numeric
value’ 7’. For example, AGC17, GSD267, AGC77 etc.

Search by %17%:- System will fetch all the records whose Product Number contains the
numeric value 17. For example, GSD217, GSD172, AGC17 etc.
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.
3.3.3
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.
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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.
3.3.4
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.
3.3.5
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.
3.3.6
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.
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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.
3.3.7
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.
3.3.8
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.
3.3.9
Authorizing Reversal of Policy
A reversed policy must be authorized. The process of authorization is subsequently the same
as that for normal transactions.
3.4
Maintaining Ratio Percentage
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:

Onshore Cash (25%)

Onshore Property (40%)

Offshore Cash (35%)
The cumulative investment ratio would add up to the total Fund Investment F1.
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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.
3.5
Enriching Policy Transactions
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.
3.5.1
Fields in the Policy Transaction Exchange Rate Enrichment Screen
Enter the required details here:
Enrichment Option
Alphanumeric; Optional
Select the enrichment option from the adjoining drop-down list. The options are:

Policy Settlement

Policy Transaction
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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
3.5.1.1
Exchange Rate Enrichment Details
In this grid, the system will display the following values for the records matching the criteria
specified above.

Process

Product ID

Policy Number

Policy Txn Number

Source ID

From Currency

To Currency

Amount

Exchange Rate Applied

Override Exchange Rate

FX Deal Date

FX Value Date
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).
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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.
3.6
Maintaining Interest Rate Details
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.
3.6.1
Invoking Screen
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.
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3.6.2
Fields in Policy Maintenance Screen
3.6.2.1
Interest Rate Maintenance Section
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.
3.7
Interest Rate Maintenance Summary Screen
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. The following screen is displayed:
3.7.1
Retrieving Interest Rate in Interest Rate Maintenance Screen
You can retrieve a previously entered record in the Summary screen, as follows:
Specify any or all of the following details in the Interest Rate Maintenance Summary screen:

Select the status of the record in the Authorization Status field. If you choose the “Blank
Space” option, then all the records are retrieved.

Select the status of the record in the Record Status field. If you choose the “Blank
Space” option, then all the records are retrieved.
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–
Effective Date
–
Transaction Currency
–
Interest Rate(%)
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:
–
Press F7.
–
Input the Authorization Status.
–
Press F8.
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:-
3.7.2

Search by A%: System will fetch all the records whose Product ID starts from Alphabet
‘A’. For example, AGC17, AGVO6, AGC74 etc.

Search by %7: System will fetch all the records whose Product ID ends by numeric
value’ 7’. For example, AGC17, GSD267, AGC77 etc.

Search by %17%:- System will fetch all the records whose Product ID contains the
numeric value 17. For example, GSD217, GSD172, AGC17 etc.
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.
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3.7.3
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.
3.7.4
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.
3.7.5
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.
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3.7.6
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.
3.7.7
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.
3.7.8
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:
3.7.8.1

For unauthorized transactions

If a parameter code called “DUPWARNINGLAG” and the value for the ‘n’ number of
days has been maintained. The validation fails if the ‘n’ number of days is specified as
zero.
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.
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4. Policy Transactions – Top Up
4.1
Introduction
A Policyholder can initiate any of the following transactions in a Policy that one has
purchased:

Top Ups

Partial or Full Redemption Transactions, known as Surrender Transactions

Partial or Full Switch Transactions
Note
Policy transactions can be carried out through the Agency Branch component only.
Policy Transactions can only be initiated into authorized policies for which the underlying
initial investment transaction has already been generated. The Policy transaction must be
authorized before it becomes effective and the underlying transactions are generated.
This chapter deals with Top Up transactions.
4.2
Top Up Transactions
After subscribing to a Policy in any of the Products of the AMC, the Policyholder may deem it
necessary to increase his contribution in the Policy at any given point of time. In such an
event, he can request for a Policy transaction to be initiated. Such investments are called ‘top
ups’ in the system.
4.2.1
Entering Top up Transaction
The following are the steps you need to follow to enter and save a Top Up transaction. Each
of these steps is explained in detail in subsequent sections.
4.2.2

Invoke the Policy Transaction – Top Up screen.

Enter information in the Policy Transaction – Top Up screen.

Save the information entered.
Invoking screen
Invoke the ‘Policy Transaction-TOPUP Detail’ screen by typing ‘LEDPLTOP’ in the field at the
top right corner of the Application tool bar and clicking on the adjoining arrow button.
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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 Policy Transaction TOPUP.
4.2.3
Fields in Policy Transaction TOPUP Screen
4.2.3.1
Policy Transaction section
Policy Transaction Number
System Generated Number
This is a unique identification for the Policy transaction that is effected in this Policy. It is
generated by the system when all details that are mandatory for the transaction profile have
been successfully entered, and the transaction record is saved.
Reference Number
16 Characters Maximum, Alphanumeric, Optional
Specify a unique identification for this Policy transaction that will be used in all subsequent
references to this transaction, before it is authorized.
Policy Number
Mandatory
Select the Policy on which this transaction is to be effected. You can use the Find Policy
Options screen. The Policy selected must be an authorized, active Policy on which the
underlying initial investment transaction has already been generated.
Policy Start Date (dd/MM/yyyy)
Display
When you select the Policy Number, the start date of the selected Policy is displayed here.
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Policy Holder ID
Display
When you specify the Policy Number, the ID of the Policy holder is displayed here.
Name
Display
When the Policy Number is selected, the name of the corresponding Policyholder is displayed
here.
Product ID
Display
When the Policy is specified, the ID of the product under which the corresponding Policy has
been created is displayed in this field.
Product Name
Display
When the Policy is specified, the name of the product under which the corresponding Policy
has been created is displayed in this field.
Policy Maturity Date (dd/MM/yyyy)
Display
The maturity date of the Policy is taken from the Policy creation details and displayed here.
You will not be allowed to change the same.
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4.2.3.2
Policy Financial Wizard
When you click ‘Policy Financial Wizard’ button in the Policy Transaction-TOPUP Detail
screen, the following screen in invoked:
The Policy Fin Wizard Detail screen enables a Policy Holder to know, at a glance, the value
of his policy, and the details of his holdings in the funds.
Policy Financial Wizard section
Policy Number
Policy number provided in policy transaction details will be displayed here
Product ID
The product ID of the LEP product gets displayed here.
Policy Base Currency
The base currency of the policy gets displayed here.
Product Base Currency
The base currency of the product gets displayed here.
4-4
Policy Holder ID
Display
Unitholder ID provided by you in the policy transaction details will be displayed here.
Policy Holder Name
Policy Holder name will be displayed.
Options section
The details of the holdings that can be viewed are given below:

Market Ratio

Contribution Amount

Compounded Contribution

Portfolio Amount

All
Select one of the options (the option ‘All ’allows you to view all details together) and click ‘View
Information’ button.
The position of the Policy Holder’s investment is thus available at a glance, and will aid him,
when transaction amounts are specified.
4.2.3.3
Amount Contributions Section
Options
Display
Policy Financial Info details is displayed here as per the search criteria.
Net Amount
Display Only
This displays the total policy holdings in each individual section.
Amount In Product Currency
Display Only
The net amount in product base currency converted from policy base currency get displayed
here.
4.2.3.4
Market Ratio Section
Fund Id
Display
Fund ID is displayed here
Units
Display
Policy Holdings under particular fund is displayed.
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NAV
Display
Net Asset Value is displayed.
Net Amount
Display
Value of the Holdings in each fund is displayed
Split Percentage
Display
This displays the percentage of holdings in a fund from the total policy holdings.
4.2.3.5
PH Deal
Click ‘Ph Deal’ button in the Policy Transaction-TOPUP Detail screen, to view the details of
all the deals set up for the unit holder. The following screen is displayed.
4.2.4
Retrieving Unit Holder Deal in Unitholder Deal Screen
You can retrieve a previously entered record in the Summary screen, as follows:
1. Invoke the Unitholder Deal Summary screen by clicking ‘Ph Deal’ button.
2. Select the status of the record in the Authorized field. If you choose the “Blank Space”
option, then all the records are retrieved.
3. Select the status of the record in the Open field. If you choose the “Blank Space” option,
then all the records are retrieved.
4. Unit Holder/ CIF Number
4-6
5. Apply At CIF Level.
6. Apply Deal At.
7. Load ID.
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:–
Press F7.
–
Input Product ID.
–
Press F8.
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 Reference Number by using the combination of % and alphanumeric value
as follows:
4.2.5

Search by A%: System will fetch all the records whose Product ID starts from Alphabet
‘A’. For example, AGC17, AGVO6, AGC74 etc.

Search by %7: System will fetch all the records whose Product ID ends by numeric
value’ 7’. For example, AGC17, GSD267, AGC77 etc.

Search by %17%:- System will fetch all the records whose Product ID contains the
numeric value 17. For example, GSD217, GSD172, AGC17 etc.
Editing Unit Holder Deal
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 Unitholder Deal Summary screen by clicking ‘Ph Deal’ button.
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
UNITHOLDERDEAL 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 Unitholder Deal Detail screen is closed and the
changes made are reflected in the Unitholder Deal Summary screen.
4-7
4.2.6
Viewing Unit Holder Deal
To view a Unitholder Deal you have previously entered, you must retrieve the same in the
Unitholder Deal Summary screen, as follows:
1. Invoke Unitholder Deal Summary screen by clicking ‘Ph Deal’ button.
2. Select the status of the Unitholder Deal that you want to retrieve for viewing in the
Authorized 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 UNITHOLDERDEAL screen is opened in View mode.
4.2.7
Deleting Unit Holder Deal
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
Unitholder Deal Summary screen, as follows:
1. Invoke the Unitholder Deal Summary screen by clicking ‘Ph Deal’ button.
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 Unitholder Deal 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.
4.2.8
Authorizing Unit Holder Deal
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 Unitholder Deal Summary
screen.
1. Invoke the Unitholder Deal Summary screen by clicking ‘Ph Deal’ button.
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 Unitholder Deal 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 record.
4-8
4.2.9
Amending Unit Holder Deal
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 Unitholder Deal Summary screen by clicking ‘Ph Deal’ button.
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 Unitholder Deal 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.
4.2.9.1
Specifying Transaction Details
Transaction Date (dd/MM/yyyy)
Date Format, Mandatory
Specify the date for the transaction. You can enter a backdated transaction here, if backdated
transactions are allowed in the corresponding product. If backdated transactions are not
allowed, then this date must not be earlier than the Application Date.
The system supports future dated policy transactions. Therefore, you can enter the
transaction date of a policy greater than the system date.
Future Date Limit
Numeric, Optional
As stated earlier, the system allows you to enter future dated policy transactions.
4-9
The Future Date Limit indicates the number of days (in terms of Fund Calendar days) up to
which future dating of transactions will be allowed.
The system validates the transaction date against the Future Date Limit and ensures that the
transaction date is within the future date limit. In other words, the transaction date cannot be
beyond the number of days expressed as Future Date Limit.
Example
Let us assume you are trying to enter a future date policy transaction on 11/01/2007 (System
Date) with the following details:

Policy Transaction Date – 11/02/2007

Future Date Limit – 45
The system will allow you to save this transaction as the policy transaction date is within the
future date limit range.
However, you cannot enter a policy with the transaction date beyond 45 days.
For future dated policy top up transactions:

If multiple funds are attached and a future date limit validation fails for one or more
associated funds, the system will reject the complete transaction. You will have to select
a transaction date, which is within the future date limit for all the funds chosen under
Asset Allocation.

The validation will be made against the latest available fund rule, as of the transaction
date that you enter. The system will display a warning indicating that the transaction is
future dated. The system will calculate the settlement date be based on the transaction
date entered.

If there is any change in the fund/system level holiday, the future dated transaction date
also becomes a holiday. The system will carry forward the transactions which are falling
on a holiday to the next working date.
Note
The Transaction Date must be later than the Start Date of the Policy, earlier than the End
Date of the Policy, and must not be a holiday. The transaction date cannot be earlier than
the policy start date or the first Rule Effective Date of the policy.
Top Up Inclusive?
Mandatory
If the transaction is a top up transaction, check this box to indicate that it must be an inclusive
top up transaction. When a top up is inclusive, the top up amount is considered immediately
for the next annuity payment. If it is an exclusive top up, the top up amount is not considered
for annuity payments till after the first anniversary date.
Transaction Mode
Mandatory
The mode, in this case ‘Amount’, in which the transaction must be put through, will be
displayed.
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Transaction Entry Date (dd/MM/yyyy)
Date Format, Mandatory
The Transaction Entry Date signifies the date on which the transaction is entered into the
system. By default, the application date is displayed in this field, and it cannot be altered.
Transaction Amount
Numeric, Mandatory
Specify the investment amount of the transaction.
Transaction Currency
Mandatory
When different currencies have been used in payment details, then you are required to enter
the transaction currency. If you do not, then the system will default the corresponding Plan (or
Policy) base currency from the Policy details record as the default transaction currency. If all
the transaction currencies used in payment details are the same, then the system will default
the same currency. You can change it to a transaction currency of your choice.
Policy Base Currency
Display
When the Policy is selected, the corresponding Plan (or Policy) Base Currency is displayed
here from the Policy details record. This currency cannot be changed at this stage.
Transaction Type
Optional
Select the Adjustment Transaction Type. The drop-down includes options which can be
maintained in the System Parameters Maintenance screen under the Param Code
PLCYTOPUPTYPE.
Refer to the chapter “Maintaining System Parameters” for further information on the System
Parameters Maintenance screen.
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.
Funding Percentage
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.
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Phase In To Be Cancelled
Optional
You could choose to cancel all, none or specific Ids of the active PhaseIn setup.
Balance Transfer
System allows you to specify the Units in Asset allocation details.
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). You will be able to
change the amount displayed, if you wish to.
Transaction Category
Mandatory
Select the transaction category from the adjoining drop-down list. Following are the options
available:
 Legal

Advised Business

Execution Only
Exchange Rate Details
The policy transaction currency can be different from the base currency of the policy. In this
section, you can maintain the details related to the exchange rate to be used for currency
conversion.
Source ID
Mandatory
Specify the source from which the exchange rate is obtained or select the source ID from the
option list provided.
Exchange Rate Applied
The exchange rate corresponding to the combination of policy base currency and policy
transaction currency gets displayed here. The exchange rate for a top-up transaction will be
between the transaction currency and policy base currency.
Amount Applied
The amount calculated based on the exchange rate specified gets displayed here, after the
calculation.
Override Exchange Rate
Select the option to indicate if you wish to override the exchange rate that gets defaulted.
Select ‘Yes’ to indicate that you wish to override the exchange rate and ‘No’ to indicate
otherwise.
Click Enrich button to calculate the amount using the exchange rate specified. The interest
amount associated with the policy transaction also gets converted to policy base currency
based on the exchange rate specified.
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4.2.9.2
Specifying Asset Allocation
Capture the fund-wise pattern of distribution of the investment amount in the Asset Allocation
Details section of this tab. If the initial contribution that you enter is in different currencies, you
need to mention the currency-wise details here
Fund ID
Mandatory
All the funds mapped for the selected product are displayed in the option list. Select the
required funds.
Units/Ratio
Numeric, Mandatory
Specify the portion of the units that are to be invested in each of the selected funds.
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.
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.
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
converted to policy transaction currency based on the exchange rate defined in settlements.
If the settlements are maintained in only one currency, then you can enter either the ratio or
the transaction amount.
Transaction Amount
Numeric, Mandatory
Specify the portion of the transaction amount that is to be invested in each of the selected
funds. If different currencies have been mentioned in settlements, then you can specify only
4-13
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
–
If you have checked the ‘Include Interest in Investment’ box, then the total of
settlement and interest amounts for each currency needs to be equal to the asset
allocation transaction amount for the currency. You need to manually add the
interest amount calculated in the settlement details to the transaction amount for the
particular currency in the asset allocation details.
–
If the ‘Include Interest in Investment’ box has not been checked, then sum of currency wise settlement amount should be equal to the asset allocation transaction
amount for the currency.
WAC
Mandatory
Enter the Weighted Average Cost.
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.
Exchange Rate Source
Alphanumeric; Optional
The system will display the exchange source maintained at the 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.
Exchange Rate Applied
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’.
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.
FX Deal Date
Date format; Optional
The system will default the transaction date of the policy top-up transaction here. You can
change it if required.
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FX Value Date
Date format; Optional
The system will default the transaction date of the policy top-up transaction here. You can
change it if required.
KIID Compliant
Optional
Select if the policy is KIID compliant or not from the adjoining drop-down list. Following are
the options available:
4.2.9.3

Yes

No
Specifying Payment Details
Capture the details of payments made by the Policy Holder towards processing of the
transaction in this tab.
Payment Details
Bank Code
Mandatory
Select the Bank code from the option list.
Branch Code
Mandatory
Select the Branch code from the option list.
4-15
Cheque Number
Mandatory
Enter the cheque number of the cheque /draft number of the demand draft by which the
payment is being made.
Clearing Date (DD/MM/YYYY)
Date Format, Mandatory
Specify the Clearing Date of the payment.
Cheque Date
Date Format, Mandatory
Enter the cheque date of the cheque /draft number of the demand draft by which the payment
is being made.
Payment Type
Mandatory
Specify whether the payment will be made by the Policyholder or a 3rd party.
Payment Mode
Mandatory
Select the mode through which the payment is made by the Policyholder. This could be any
one of the following, as applicable:

Cash

Cheque

Money Transfer (Account Transfer)

Demand Draft
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.
Account Currency
Display
The transaction currency is displayed. You are not allowed to change this value.
Account Number
Mandatory
Specify the number of the transfer account.
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Account Type
Mandatory
Select the account type of the transfer account.
IBAN
36 Characters Only; Alphanumeric; Optional
Specify the IBAN (International Bank Account Number) of the account holder.
Exchange Rate Details
The system will default the following exchange rate details for each settlement:

Source ID

Exchange Rate Applied

Transaction Currency Amount

Override Exchange Rate

FX Deal Date

FX Value Date
However if required you can override the default values and input new values.
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 ‘Transaction Detail’ tab, if the investment amount has
been deposited prior to the transaction 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.
4-17
Interest Calc. Days
Display Only
The system calculates the number of days for which interest calculation has to be done for a
policy top-up based on the payment date and transaction date.
Basis Days
Mandatory, Numeric
Select the interest basis days, based on which the interest will be calculated. The options
available are:


4.2.9.4
360 days
365 days
Specifying Broker Details
Broker Code
System will fetch the Broker Mapped for the Policy. User can also input the broker code from
the option lsit.
Broker Name
Display
Upon selection of the broker code, the system displays the name of the selected broker code.
Parent Broker Code
Display
The system displays the parent broker code.
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.
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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.
4.2.9.5
Specifying Load Override Details
You can override or alter the value of load 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’
Link.
Refer the section “Load Override Details Link” in the chapter ‘Policy’ for a detailed discussion
of the load override details.
4.2.10
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.
4-19
4.2.11
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 for more details on the back data propagation process:
4.3
Policy Transaction Topup Summary Screen
Invoke the ‘Policy Transaction-Topup Summary’ screen by typing ‘LESPLTOP’ in the field at
the top right corner of the Application tool bar and clicking on the adjoining arrow button.
The following screen is displayed:
4.3.1
Retrieving Topup Transaction in Policy Topup Screen
You can retrieve a previously entered record in the Summary screen, as follows:
Specify any or all of the following details in the Policy TopUp Summary screen:

Select the status of the record in the Authorization Status field. If you choose the “Blank
Space” option, then all the records are retrieved.

Select the status of the record in the Record Status field. If you choose the “Blank
Space” option, then all the records are retrieved.

The Policy Transaction Number

The Policy Number

The Product ID

TXNTYPE

Transaction Date
4-20

Policy Holder ID

Transaction Reference Number
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:
–
Press F7.
–
Input Product ID.
–
Press F8.
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 Reference Number by using the combination of % and
alphanumeric value as follows:
4.3.2

Search by A%: System will fetch all the records whose Product ID starts from Alphabet
‘A’. For example, AGC17, AGVO6, AGC74 etc.

Search by %7: System will fetch all the records whose Product ID ends by numeric
value’ 7’. For example, AGC17, GSD267, AGC77 etc.

Search by %17%: System will fetch all the records whose Product ID contains the
numeric value 17. For example, GSD217, GSD172, AGC17 etc.

Search by %: System will fetch all the records maintained.
Editing TopUp Transaction
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 Transaction TopUp 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
Transaction TopUp 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 Transaction TopUp Detail screen is closed
and the changes made are reflected in the Policy Transaction TopUp Summary screen.
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4.3.3
Viewing TopUp Transaction
To view a Transaction Top Up you have previously entered, you must retrieve the same in the
Policy Transaction Topup Summary screen, as follows:
1. Invoke the Summary Screen from the Browser.
2. Select the status of the Policy Transaction Topup 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 Transaction Topup screen is opened in View mode.
4.3.4
Deleting TopUp Transaction
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
Transaction Topup Summary screen, as follows:
1. Invoke the Policy Transaction Topup 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 Transaction TOPUP 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.
4.3.5
Authorizing TopUp Transaction
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 Transaction TopUp
Summary screen.
1. Invoke the Policy Transaction Topup 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 Transaction TopUp 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 record.
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4.3.6
Amending TopUp Transaction
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 Transaction Topup 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 Product Type 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.
4.3.7
Authorizing Amended Transaction TopUp
An amended transaction top up 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.
4.3.8
Reversing TopUp Transaction
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 Transaction Topup 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 Transaction TOPUP 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.
Refer to the chapter “Allocation Details” of Allocation Module for information on the
Allocation Details screen
4-23
5. Policy Transactions – Switch
5.1
Introduction
A Policy Holder can initiate any of the following transactions in a policy that he has purchased:

Top Ups

Partial or Full Redemption Transactions, known as Surrender Transactions

Partial or Full Switch Transactions
Note
Policy transactions can be carried out through the Agency Branch component only.
Policy Transactions can only be initiated into authorized policies for which the underlying
initial investment transaction has already been generated. The policy transaction must be
authorized before it becomes effective and the underlying transactions are generated.
This chapter deals with Switch transactions.
5.2
Switch Transactions
A partial or total switch transaction is effected when a Policy Holder chooses to re-allocate his
assets in the underlying funds of the policy. As a result, he re-distributes his investment in
some or all funds of the policy. He may choose to invest in a different fund set or change his
investment ratios in the same funds. The funds he wishes to invest should be mapped as
allowable portfolios for the product.
In the system, a switch transaction is processed as two separate transactions; the first
involving a redemption from the first or ‘From’ fund, and the second involving a subscription
to the second or ‘To’ fund.
5.2.1
Entering Switch Transaction
The following are the steps you need to follow to enter and save a Switch Transaction. Each
of these steps is explained in detail in subsequent sections.
5.2.2

Invoke the Policy Transaction – Switch screen.

Enter information in the Policy Transaction – Switch screen.

Save the information entered.
Invoking Screen
You can invoke the ‘Policy Transaction-Switch Detail’ screen by typing ‘LEDPLSWI’ in the
field at the top right corner of the Application tool bar and clicking on the adjoining arrow
button.
5-1
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 Policy Transaction Switch.
5.2.3
Fields in Policy Transaction Switch Screen
5.2.3.1
Policy Transaction section
In the Policy Transaction section, you will have to enter information in the following fields:
Policy Transaction Number
System Generated Number
This is a unique identification for the policy transaction that is effected in this policy. It is
generated by the system when all details that are mandatory for the transaction profile have
been successfully entered, and the transaction record is saved.
Transaction Reference Number
16 Characters Maximum, Alphanumeric, Optional
Specify a unique identification for this policy transaction that will be used in all subsequent
references to this transaction, before it is authorized.
Policy Number
Mandatory
Select the policy on which this transaction is to be effected from the option list. The policy
selected must be an authorized, active policy on which the underlying initial investment
transaction has already been generated.
Policy Start Date (dd/MM/yyyy)
Display
When you select the Policy Number, the start date of the selected Policy is displayed here.
5-2
Product ID
Display
When the Policy is specified, the ID of the Product under which the corresponding Policy has
been created is displayed in this field.
Product Name
Display
When the Policy is specified, the name of the Product under which the corresponding Policy
has been created is displayed in this field.
Policy Holder ID
Display
When you specify the Policy Number, the ID of the Policy Holder is displayed here.
Policy Holder Name
Display
When the Policy Number is selected, the name of the corresponding Policy Holder is
displayed here.
Policy Maturity Date (dd/MM/yyyy)
Display
The Maturity Date of the Policy is taken from the policy creation details and displayed here.
You will not be allowed to change the same.
You will also have to enter information in the fields in the following tabs in this screen:

Transaction Details

Asset Allocation

Brokers Details
5-3
5.2.3.2
Policy Financial Wizard
When you click ‘Policy Financial Wizard’ button, the following screen in invoked:
The Policy Financial Wizard enables a Policy Holder to know, at a glance, the value of his
Policy and the details of his holdings in the funds. The product Id, product base currency and
the policy base currency also are displayed based on the Policy Holder ID specified.
Options Section
The details of the holdings that can be viewed are given below:

Market Ratio

Contribution Amount

Compounded Contribution

Portfolio Amount

All of the above
Select one of the options (the option ‘All of the above’ allows you to view all details together)
and click ‘View Information’ button.
The position of the Policy Holder’s investment and the holding value in product base currency
are thus available at a glance, and will aid him when transaction amounts are specified.
5-4
5.2.3.3
PH Deal
Click ‘Ph Deal’ button to view the details of all the deals set up for the unit holder. The following
screen is displayed.
5.2.4
Retrieving Unit Holder Deal in Unitholder Deal Screen
You can retrieve a previously entered record in the Summary screen, as follows:
1. Invoke the Unitholder Deal Summary screen by clicking ‘Ph Deal’ button.
2. Select the status of the record in the Authorization Status field. If you choose the “Blank
Space” option, then all the records are retrieved.
3. Select the status of the record in the Record Status field. If you choose the “Blank Space”
option, then all the records are retrieved.
4. Unit Holder/ CIF Number
5. Apply At CIF Level
6. Apply Deal At
7. Load ID
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:–
Press F7.
5-5
–
Input Product ID.
–
Press F8.
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 Reference Number by using the combination of % and
alphanumeric value as follows:
5.2.5

Search by A%: System will fetch all the records whose Product ID starts from Alphabet
‘A’. For example, AGC17, AGVO6, AGC74 etc.

Search by %7: System will fetch all the records whose Product ID ends by numeric
value’ 7’. For example, AGC17, GSD267, AGC77 etc.

Search by %17%:- System will fetch all the records whose Product ID contains the
numeric value 17. For example, GSD217, GSD172, AGC17 etc.
Editing Unit Holder Deal
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 Unitholder Deal Summary screen by clicking ‘Ph Deal’ button.
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
Unitholder Deal 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 Unitholder Deal Detail screen is closed and the
changes made are reflected in the Unitholder Deal Summary screen.
5.2.6
Viewing Unit Holder Deal
To view a Unitholder Deal you have previously entered, you must retrieve the same in the
Unitholder Deal Summary screen, as follows:
1. Invoke Unitholder Deal Summary screen by clicking ‘Ph Deal’ button.
2. Select the status of the Unitholder Deal 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 Unitholder Deal screen is opened in View mode.
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5.2.7
Deleting Unit Holder Deal
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
Unitholder Deal Summary screen, as follows:
1. Invoke the Unitholder Deal Summary screen by clicking ‘Ph Deal’ button.
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 Unitholder Deal 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.
5.2.8
Authorizing Unit Holder Deal
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 Unitholder Deal Summary
screen.
1. Invoke the Unitholder Deal Summary screen by clicking ‘Ph Deal’ button.
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 Unitholder Deal 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 record.
5.2.9
Amending Unit Holder Deal
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 Unitholder Deal Summary screen by clicking ‘Ph Deal’ button.
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 Unitholder Deal screen will be
displayed in Amendment mode. Click the Unlock operation from the Action list to amend
the record.
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5. Amend the necessary information. Click the Save button to save your changes.
5.2.9.1
Specifying Transaction Details
Transaction Date (dd/MM/yyyy)
Date Format, Mandatory
Specify the date for the transaction. You can enter a backdated transaction here, if backdated
transactions are allowed in the corresponding product. If backdated transactions are not
allowed, then this date must not be earlier than the application date.
The Transaction Date must be earlier than the End Date of the Policy, and must not be a
holiday. The transaction date cannot be earlier than the first Rule Effective Date of the policy.
Portfolio Switch
Optional
Select ‘Yes’ to indicate the switch is a complete or partial switch transaction within the funds
in which the investor as invested. Portfolio switch is applicable to both transaction put through
by amount or by percentage of holdings.
Transaction Mode
Mandatory
Select the mode in which the transaction must be put through, from the drop-down list.
Transactions can be put through either by amount, percentage and units of holdings.
If you select the option ‘Units’ then the system defaults the following fields:

Transaction Amount and Percentage of holdings field will be disabled and default
amount will be zero.
Transaction Entry Date (dd/MM/yyyy)
Date Format, Mandatory
The Transaction Entry Date signifies the date on which the transaction is entered into the
system. By default, the application date is displayed in this field, and it cannot be altered.
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Transaction Amount
Numeric, Mandatory if the Transaction Mode is ‘Amount’
Specify the investment amount of the transaction.
On saving amount based policy switch transactions, the system will compute the market value
of policy across all funds.
If the transaction amount is greater than the threshold limit of policy market value, the system
will display the following error message “Transaction amount exceeds threshold limit of the
policy market value. Please use transaction mode as percentage - % to ensure guaranteed
execution of transaction”. You will then have to change the Transaction Mode to Percentage
and indicate the percentage as 100%.
Transaction Currency
Mandatory
If the switch is done in a currency other than the policy base currency, then you are required
to specify the transaction currency. If you do not, then the system will default the base
currency of the corresponding policy or plan from the Policy details record as the transaction
currency.
Percentage Holding
5 Characters Maximum, Numeric, Mandatory if Transaction Mode is ‘Percentage of
Holdings’
If the specified Transaction Mode is ‘Percentage of Holdings’, then specify the percentage of
the Policy Holder’s holdings that is to be reckoned as the transaction amount for this
transaction.
When you specify this percentage, the transaction amount is computed and displayed in the
‘Transaction Amount’ field, and locked.
The percentage you specify here must not exceed one hundred.
Policy Base Currency
Display
When the Policy is selected, the corresponding Plan (or Policy) Base Currency is displayed
here from the policy details record. This currency cannot be changed at this stage.
Remarks
Alphanumeric, Optional
Enter a brief description of the transaction, or any applicable remarks about the transaction.
Transaction Category
Mandatory
Select the transaction category from the adjoining drop-down list. Following are the options
available:
 Legal

Advised Business

Execution Only
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Exchange Rate Details
The policy transaction currency can be different from the base currency of the policy. In this
section, you can maintain the details related to the exchange rate to be used for currency
conversion.
Source ID
Mandatory
Specify the source from which the exchange rate is obtained or select the source ID from the
option list provided.
Exchange Rate Applied
The exchange rate corresponding to the combination of policy base currency and policy
transaction currency gets displayed here. The exchange rate for a switch transaction will be
between policy base currency and transaction currency.
Amount Applied
The amount calculated based on the exchange rate specified gets displayed here, after the
calculation.
Override Exchange Rate
Select the option to indicate if you wish to override the exchange rate that gets defaulted.
Select ‘Yes’ to indicate that you wish to override the exchange rate and ‘No’ to indicate
otherwise.
Click ‘Calculate’ button to calculate and convert the amount in terms of the policy base
currency using the exchange rate specified.
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5.2.9.2
Specifying Asset Allocation
If the transaction amount that you enter is in different currencies, you need to mention the
currency-wise details here.
Asset Allocation Details section
Capture the funds FROM which the investment amount is being moved, in the Asset
Allocation Details section of this tab:
Fund ID
Mandatory
All the funds mapped for the selected Product where the Policy holder has a balance are
displayed in the option list. Select funds FROM which you are moving the investment amount.
Fund Name
Specify the fund name from the adjoining option list.
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’.
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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.
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
converted to policy transaction currency based on the exchange rate defined in settlements.
If the settlements are maintained in only one currency, then you can enter either the ratio or
the transaction amount
Transaction Amount
Numeric, Mandatory
Specify the portion of the transaction amount/units that are to be invested in each of the
selected funds. The sum of these amount/units must not be greater than the total transaction
amount/units specified in the transaction details tab for this transaction.
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
If you have specified the investment ratios in each fund, the investment amounts are computed and displayed here, and this field is locked.
Auto Clear Provisional Balance
For a complete switch transaction, you can use this field to indicate that the outflow
transaction should include units in provisional balance.
If the policy transaction already has an underlying UT transaction with this option checked,
then system throws up a warning and tracks the provisionally allotted transactions for auto
clearing.
Auto Clear Reinvestments
Use this field to indicate that for a complete switch transaction, the out flow transaction should
include freeze held and reinvestment units.
Note
The ‘Auto Clear Provisional Balance’ and ‘Auto Clear Reinvestments’ fields will be
checked or unchecked based on the specification for the same in the policy maintenance
screen. However, you can change the defaulted value. These options will be enabled if the
Percentage of Holdings is ‘100’.
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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..
Source ID
Alphanumeric; Optional
The system will display the exchange source maintained at the 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 Applied
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 start date of the policy here. You can change it if required.
FX Value Date
The system will default the start date of the policy here. You can change it if required.
Units
Specify the units
Ratio
Specify the ratio
WAC
Enter the Weighted Average Cost.
You can click delete icon to delete any specified fund.
KIID Compliant
Optional
Select if the policy is KIID compliant or not from the adjoining drop-down list. Following are
the options available:

Yes

No
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Switch Asset Allocation Details Section
You can capture the funds INTO which the investment amount is being moved in the Switch
Asset Allocation Details Section:,
To 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.
Fund Name
Specify the fund name.
Ratio
Specify the ratio.
You can click delete icon to delete any specified fund.
Note
If the ‘From’ and ‘To’ funds do not belong to the same AMC, the switch will be a pseudoswitch. The system will generate a redemption transaction on the same day and the subscription transaction on the settlement day. While doing a reversal for 100% Switch Transaction prior fee, system should throw an override able warning message if periodic fee has
been charged for the switch.
5.2.9.3
Specifying Broker Details
The broker details can be fetched in the following two ways:
1. It can be fetched directly by clicking ‘Fetch Broker Details’ button. The system will
automatically default the broker details maintained at the policy level
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2. It can also be selected in the screen itself by clicking add icon. Select the Broker Code
from the option list. You should also specify the split percentage. You can follow this step
when you want to fetch the broker details that are maintained at the policy level.
Broker Details Section
Broker Code
Broker Code is defined when a broker is created. Select the broker code from the option list.
Broker Name
Once you select the broker code, the broker name gets populated.
Parent Broker Code
Once you select the broker code, system the parent broker code gets populated.
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. When the Policy Number is selected the split
percentage as mentioned in the policy is defaulted here.
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.
Delete?
You can click delete icon to delete any specified fund.
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5.2.9.4
Specifying Load Override Details
You can override or alter the value of load 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
Link.
Refer the Section ‘Load Override Details Link’ in the chapter ‘Policy’ for a detailed discussion
of the load override details.
5.2.10
Un-Allotted Fee Transaction
During the fee redemption transaction generation process, the system will check for 100%
switch transaction that is Un-Allotted. If Un-allotted, then the fee transaction is reversed:

If there is an external switch (Pseudo), the fee would be taken proportionately from the
switch in fund/s by means of a fee override and the fee transaction would not get
generated.

If there is an internal switch, the fee transaction would be generated from the switch in
fund
Note
And during the 100% switch transaction process, the system will check for any fee transaction that is un-allotted.
Annuity Transaction
When you have entered all the mandatory information for a 100% switch transaction, system
checks if the annuity is applicable for the policy and the month.
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If annuity is applicable for the policy system will calculate the next annuity generation date
using annuity frequency & annuity payment lag. If difference between annuity generation date
& 100% switch transaction date is greater than or equal to 6 days (External switch)or 4
days(Internal Switch, then system will check for the funds for which 100% switch is being
processed are also part of the annuity asset allocation.
If funds are common between 100% switch transaction & annuity asset allocation then
following warning message gets displayed:
Annuity transaction is applicable for this policy, are you sure you wish to proceed with this
switch?
Select override, for the normal annuity transaction.
If difference between annuity generation date & 100% switch transaction date is less than 6
days (External switch) or 4 days(Internal Switch), then system will check for the funds for
which 100% switch is being processed are also part of the annuity asset allocation.
If funds are common between 100% switch transaction and annuity asset allocation then
following error message will be displayed:
"Annuity is in progress, this transaction can not be processed".
If annuity has already been generated before the switch and If funds are common between
100% switch transaction and annuity asset allocation then following error message will be
displayed
"Annuity is in progress, this transaction can not be processed".
User should not be allowed to proceed with the transaction.
5.2.11
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.
5.2.12
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.
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Refer the chapter ‘Back Data Propagation’ for more details on the back data propagation
process:
5.3
Policy Transaction Switch Summary Screen
You can invoke the ‘Policy Transaction-Switch Summary’ screen by typing ‘LESPLSWI’ in the
field at the top right corner of the Application tool bar and clicking on the adjoining arrow
button. The following screen is displayed:
5.3.1
Retrieving Transaction Switch in Policy Transaction Switch Screen
You can retrieve a previously entered record in the Summary screen, as follows:
Specify any or all of the following details in the Policy Transaction Switch Summary screen:

Select the status of the record in the Authorized field. If you choose the “Blank Space”
option, then all the records are retrieved.

Select the status of the record in the Open field. If you choose the “Blank Space” option,
then all the records are retrieved.

Policy Txn Number

Policy Number

Product ID

Transaction Type

Transaction Date

Policy Holder ID

Transaction Reference Number
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.
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Note
You can also retrieve the individual record detail from the detail screen by doing query in
the following manner:
–
Press F7
–
Input the Policy Transaction Number
–
Press F8
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 Policy Transaction Number by using the combination of % and
alphanumeric value as follows:
5.3.2

Search by A%: System will fetch all the records whose Policy Transaction Number starts
from Alphabet ‘A’. For example, AGC17, AGVO6, AGC74 etc.

Search by %7: System will fetch all the records whose Policy Transaction Number ends
by numeric value’ 7’. For example, AGC17, GSD267, AGC77 etc.

Search by %17%: System will fetch all the records whose Policy Transaction Number
contains the numeric value 17. For example, GSD217, GSD172, AGC17 etc.

Search by 66%: System will fetch all the switch transactions.
Editing Transaction Switch
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 Policy Transaction Switch 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
Transaction Switch 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 Transaction Switch Detail screen is closed
and the changes made are reflected in the Policy Transaction Switch Summary screen.
5.3.3
Viewing Transaction Switch
To view a Policy Switch you have previously entered, you must retrieve the same in the Policy
Transaction Switch Summary screen, as follows:
1. Invoke the Policy Transaction Switch Summary screen from the browser.
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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 Transaction Switch screen is opened in view mode.
5.3.4
Deleting Transaction Switch
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
Transaction Switch Summary screen, as follows:
1. Invoke the Policy Transaction Switch 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 Transaction Switch 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.
5.3.5
Authorizing Policy Switch
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 Transaction Switch Summary screen.
1. Invoke the Policy Transaction Switch 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 Transaction Switch 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.
5.3.6
Amending Transaction Switch
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 Transaction Switch Summary screen from the Browser.
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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 Transaction Switch 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.
5.3.7
Authorizing Amended Transaction Switch
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.
5.3.8
Reversing Transaction Switch
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 Transaction Switch 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 Transaction Switch 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.
Refer to the chapter ‘Allocation Details’ for information on the Allocation Details screen
5-21
6. Policy Transactions – Surrender
6.1
Introduction
A Policy Holder can initiate any of the following transactions in a policy that he has purchased:

Top Ups

Partial or Full Redemption Transactions, known as Surrender Transactions

Partial or Full Switch Transactions
Note
Policy transactions can be carried out through the Agency Branch component only.
During policy transaction, system displays a warning message if there is a security cession
marked against this policy. Warning message would be displayed on top of the Policy
Transaction Screen.
Warning: There is a Security Cession recorded against this policy. Transaction may only be
executed with the agreement of both parties.
Policy Transactions can only be initiated into authorized policies for which the underlying
initial investment transaction has already been generated. The policy transaction must be
authorized before it becomes effective and the underlying transactions are generated and
allotted.
Note
This chapter deals with Surrender transactions.
6.2
Surrender Transactions
A partial or total surrender transaction could happen in a policy in any one of the following
situations:
6.2.1

When the policy is claimed or redeemed by the Policy Holder

When the policy is closed before maturity (that is, prematurely) for various reasons

A partial redemption or surrender is effected
Entering Surrender Transaction
The following are the steps you need to follow to enter and save a Surrender transaction.
Each of these steps is explained in detail in subsequent sections.

Invoke the Policy Transaction – Surrender screen.

Enter information in the Policy Transaction – Surrender screen.

Save the information entered.
6-1
6.2.2
Invoking Screen
You can invoke the ‘Policy Transaction-Surrender Detail’ screen by typing ‘LEDPLSUR’ in 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 Policy Transaction Surrender.
6.2.3
Fields in Policy Transaction Surrender Screen
6.2.3.1
Policy Transaction Section
In the Policy Transaction section, you will have to enter information in the following fields:
Policy Txn Number
System Generated Number
This is a unique identification for the policy transaction that is effected in this Policy. It is
generated by the system when all details that are mandatory for the transaction profile have
been successfully entered, and the transaction record is saved.
6-2
Reference Number
16 Characters Maximum, Alphanumeric, Optional
Specify a unique identification for this policy transaction that will be used in all subsequent
references to this transaction, before it is authorized.
Policy Number
Mandatory
Select the policy on which this transaction is to be effected. You can use the Find Policy
Options screen. The policy selected must be an authorized, active policy on which the
underlying initial investment transaction has already been generated.
If a policy has been surrendered by mistake, the system will allow you to re-activate it. On reactivation, the system will reverse the redemption transactions generated during policy
surrender and change the status of the policy from ‘SUR’ to ‘ACT’. Annuities, premiums,
dividends and broker commissions that have been missed out can be computed through the
back data propagation facility. This computation will not be done by the system during reactivation of the policy.
Policy Start Date (dd/MM/yyyy)
Display
When you select the Policy Number, the start date of the selected Policy is displayed here.
Product ID
Display
When the Policy is specified, the ID of the product under which the corresponding policy has
been created is displayed in this field.
Product Name
Display
When the Policy is specified, the name of the product under which the corresponding policy
has been created is displayed in this field.
Policy Holder ID
Display
When you specify the Policy Number, the ID of the Policy Holder is displayed here.
Policy Holder Name
Display
When the Policy Number is selected, the name of the corresponding Policy Holder is
displayed here.
Maturity Date (dd/MM/yyyy)
Display
The maturity date of the policy is taken from the policy creation details and displayed here.
You will not be allowed to change the same.
You will also have to enter information in the fields in the following tabs in this screen:

Transaction Details

Asset Allocation

Payment Details

Brokers Details
6-3

6.2.3.2
Load Override Details
Policy Financial Wizard
When you click ‘Policy Financial Wizard’ button, the following screen in invoked:
The Policy Financial Wizard enables a Policy Holder to know, at a glance, the value of his
policy, and the details of his holdings in the funds. The product Id, product base currency and
the policy base currency also are displayed based on the Policy Holder ID specified.
Options Section
The details of the holdings that can be viewed are given below:

Market Ratio

Contribution Amount

Compounded Contribution

Portfolio Amount

All of the above
Select one of the options (the option ‘All of the above’ allows you to view all details together)
and click ‘View Information’ button.
The position of the Policy Holder’s investment and the holding value in product base currency
are thus available at a glance, and will aid him, when transaction amounts are specified.
6-4
6.2.3.3
PH Deal
Click ‘Ph Deal’ button to view the details of all the deals set up for the unit holder. The following
screen is displayed.
To retrieve the details of a record in the UnitHolder Summary screen, you need to specify the
search criteria for the system to retrieve records. You can retrieve records based on:

Authorization Status

Record Status

UnitHolder/ CIF Number

Apply At CIF Level

Apply Deal At

Load ID
You can specify any or all of the search criteria. Click ‘Search’ button to view the records.
You can view the record details by double-clicking on the particular record. The details of the
selected record will be displayed in the ‘UnitHolderDeal Maintenance’ screen.
6-5
6.2.3.4
Specifying Transaction Details
You will need to enter the following information in this tab:
Transaction Currency
Mandatory
If redemption is done in a currency other than the policy base currency, then you are required
to specify the transaction currency. If you do not, then the system will default the base
currency of the corresponding policy or plan from the Policy details record as the transaction
currency.
Transaction Entry Date (dd/MM/yyyy)
Date Format, Mandatory
The Transaction Entry Date signifies the date on which the transaction is entered into the
system. By default, the application date is displayed in this field, and it cannot be altered.
Currency Name
Display
The system displays the name of the currency.
6-6
Policy Transaction Date (dd/MM/yyyy)
Date Format, Mandatory
Specify the date for the transaction. You can enter a backdated transaction here, if backdated
transactions are allowed in the corresponding product. If backdated transactions are not
allowed, then this date must not be earlier than the application date.
The transaction date must be earlier than the End Date of the Policy, and must not be a
holiday. The transaction date cannot be earlier than the first Rule Effective Date of the policy.
Transaction Amount
Numeric, Mandatory if the Transaction Mode is ‘Amount’
Specify the portion of the transaction amount that is to be redeemed in each of the selected
funds. The sum of these amounts must not be greater than the total transaction amount
specified in the transaction details tab for this transaction. Typically, this field is only
applicable for transactions for which the mode is ‘Amount’.
Policy Base Currency
Display
When the Policy is selected, the corresponding Plan (or Policy) Base Currency is displayed
here from the policy details record. This currency cannot be changed at this stage.
Transaction Mode
Mandatory
Select the mode in which the transaction must be put through, from the drop-down list.
Transactions can be put through either by amount or percentage of holdings.
Portfolio Surrender?
Optional
You can select ‘Yes’ to indicate the surrender is a complete or partial surrender transaction
within the funds in which the investor as invested.
Percentage
5 Characters Maximum, Numeric, Mandatory if Transaction Mode is ‘Percentage of
Holdings’
If the specified Transaction Mode is ‘Percentage of Holdings’, then specify the percentage of
the Policy Holder’s holdings that is to be reckoned as the transaction amount for this
transaction.
When you specify this percentage, the transaction amount is computed and displayed in the
‘Transaction Amount’ field, and locked. In case you have specified the percentage as 100,
then the transaction amount is displayed as zero.
The percentage you specify here must not exceed one hundred.
Adjustment Transaction
Mandatory
This box is enabled if the transaction is mentioned under the Transaction Sub Types for
Adjustment Withdrawal. However, you can edit it.
If the transaction is an adjustment withdrawal, then system would not validate the No. of
withdrawals allowed at Product/Policy level. Also, the withdrawal counter at the policy level
would not be updated.
6-7
PhaseIn To Be Cancelled
Optional
You can choose to cancel all, none or specific Ids of the active PhaseIn setup.
Surrender Money Payable
Mandatory
Specify to whom the surrender money is payable, by selecting the same from the option list.
Transaction Type
Optional
Select the Adjustment Transaction Type from the option list. The option list includes options
which can be maintained in the System Parameters Maintenance screen under the Param
Code PLCYSURRTYPE.
For further information on the System Parameters Maintenance screen, refer to the chapter
Maintaining System Parameters..
Description
System displays the description of the selected transaction type.
Remarks
Alphanumeric, Optional
Enter a brief description of the transaction, or any applicable remarks about the transaction.
Surrender Limit
Display
For the Product that you have chosen for the Policy Holder, you would have selected the
‘Withdrawal Limit Basis’. The Surrender Limit will be calculated based on this specification
and displayed here.
Exchange Rate Details
The policy transaction currency can be different from the base currency of the policy. In this
section, you can maintain the details related to the exchange rate to be used for currency
conversion.
Amount Applied
The amount calculated based on the exchange rate specified gets displayed here, after the
calculation.
Exchange Rate Applied
The exchange rate corresponding to the combination of policy base currency and policy
transaction currency gets displayed here. The exchange rate for a surrender transaction will
be between policy base currency and transaction currency.
Source ID
Mandatory
Specify the source from which the exchange rate is obtained or select the source ID from the
option list provided.
6-8
Override Exchange Rate
Select the option to indicate if you wish to override the exchange rate that gets defaulted.
Select ‘Yes’ to indicate that you wish to override the exchange rate and ‘No’ to indicate
otherwise.
Click ‘Calculate’ to calculate the amount using the exchange rate specified. The interest
amount associated with the policy transaction also gets converted to policy base currency
based on the exchange rate specified.
6.2.3.5
Specifying Asset Allocation
Capture the fund-wise pattern of distribution of the surrender amount in the Asset Allocation
Details section of this tab. If the redemption is in different currencies, you need to mention the
currency-wise details here.
Fund ID
Mandatory
All the funds mapped for the selected product where the Policy holder has a balance are
displayed in the option list. Select the required funds.
Fund Name
Display
The name of the fund that you select will be displayed.
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Transaction Currency
Alphanumeric; Optional
Specify the transaction currency for the transaction. 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, Mandatory
Specify the portion of the transaction amount that is to be redeemed in each of the selected
funds. The sum of these amounts must not be greater than the total transaction amount
specified in the transaction details tab for this transaction.
Typically, this field is only applicable for transactions for which the mode is ‘Amount’.
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
If you have specified the investment ratios in each fund, the investment amounts are computed and displayed here, and this field is locked.
Source ID
Alphanumeric; Optional
The system will display the exchange source maintained at the 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 Applied
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 start date of the policy here. You can change it if required.
FX Value Date
Date format; Optional
The system will default the start date of the policy here. You can change it if required.
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Units
The Units field enables you to allot units applied for each fund under asset allocation. This is
based on the gross amount of the unit/product. To show the number of units applied to the
fund under allocation, specify the number of units allocated.
Once the Transaction Mode is selected as units, the following fields are defaulted:

Portfolio Surrender option is chosen as true, and the field is disabled for entry

The Transaction amount is defaulted as Zero, and the field is disabled for entry

The percentage of holdings are rendered zero, and the field is disabled for further input
It is necessary for you to enter the Units applied for each Fund, under the asset allocation
details.
Ratio
Numeric, Mandatory
Specify the percentage of the amount that must be redeemed 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’.
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
converted to policy transaction currency based on the exchange rate defined in settlements.
If the settlements are maintained in only one currency, then you can enter either the ratio or
the transaction amount
Note
If you have specified the investment amounts in each fund, the investment ratios are computed and displayed here, and this field is locked.
Auto Clear Provisional Balance
Mandatory
For a complete surrender transaction, you can use this field to indicate that the outflow
transaction should include units in provisional balance.
If the policy transaction already has an underlying UT transaction with this option checked,
then system throws up a warning and tracks the provisionally allotted transactions for auto
clearing.
Auto Clear Reinvestments
Mandatory
Use this field to indicate that for a complete surrender transaction, the out flow transaction
should include freeze held and reinvestment units.
Note
The ‘Auto Clear Provisional Balance’ and ‘Auto Clear Reinvestments’ fields will be
checked or unchecked based on the specification for the same in the policy maintenance
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screen. However, you can change the defaulted value. These options will be enabled if the
‘Percentage of Holdings’ is specified as 100..
KIID Compliant
Optional
Select if the policy is KIID compliant or not from the adjoining drop-down list. Following are
the options available:
6.2.3.6

Yes

No
Specifying Payment Details
Capture the details of payments made to the Policy Holder towards processing of the
transaction in this tab.
Payment Details
Payment Mode
Mandatory
Select the mode through which the payment is made to the Policy Holder or Product. The
following are the options available:

Cash

Cheque
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
Money Transfer

Demand Draft
Note
Though the above mentioned options are available, for a Surrender Transaction, the acceptable Mode of Payment is ‘Money Transfer’. The system will not allow you to save a
Surrender Transaction with any Mode of Payment other than ‘Money Transfer.
Clearing Date (DD/MM/YYYY)
Date Format, Mandatory
Specify the Clearing Date of the payment.
Beneficiary Details
Payment Type
Mandatory
Specify the type of payment. Following are the options available:

Self

Beneficiary

Product

Third Party
Note
–
The payment types ‘Beneficiary’, ‘Third Party’ and ‘Product’ are applicable only if
the payment mode is chosen as Money Transfer.
–
The payment type must be set to Product if the type of transaction is Balance transfer out.
Check Number
Mandatory
Enter the cheque number of the cheque /draft number of the demand draft by which the
payment is being made.
Ratio
Numeric
Specify the ratio of payment to be made in the specified payment mode.
If the Mode of Payment is specified as ‘Cheque’ or as ‘Demand Draft’, you will have to specify
the following:
Bank
Mandatory
Select the Drawee Bank from the option list.
Branch Code
Mandatory
Select the Branch code from the option list.
6-13
Cheque Date (DD/MM/YYYY)
Date Format, Mandatory
Enter the cheque date of the cheque /draft number of the demand draft by which the payment
is being made.
Clearing Date (DD/MM/YYYY)
Date Format, Optional
Specify the Clearing Date of the payment.
When you specify that the Mode of Payment is ‘Money Transfer’ and the Payment Type is
‘Self’, you will have to specify the following:
The following bank account details will be displayed:

Bank

Branch

Account Number

Account Type

Account Currency

Account Holder Name
When you specify that the Mode of Payment is ‘Money Transfer’ and the Payment Type is
‘Beneficiary’, you will have to specify the following:
Product/ Beneficiary ID
Mandatory
Select the beneficiary from the option list. The list contains all the beneficiaries maintained for
the policy holder.
Mandatory
Select the bank account of the beneficiary.
The following bank account details will be displayed:

Bank

Branch

Account Number

Account Type

Account Currency

Account Holder Name
When you specify that the Mode of Payment is ‘Money Transfer’ and the Payment Type is
‘Product’, you will have to specify the following:

Enter the Product ID in the Product/Beneficiary ID

Select ‘P’ in the Surrender Money Payable field in the Transaction Details tab
Mandatory
Select the bank account of the product. The list contains all the bank accounts maintained for
the chosen product.
The following bank account details will be displayed:

Bank
6-14

Branch

Account Number

Account Type

Account Currency

Account Holder Name
When you specify that the Mode of Payment is ‘Money Transfer’ and the Payment Type is
‘Third Party’, you will have to specify the following:
Identification Number
Enter the identification number assigned to the third party.
Contact Name
Enter the name of the contact person.
Address Line1 and Line 2
Alphanumeric, Mandatory
Specify the address of the third party for which the transfer payment must be made.
Bank
Mandatory
Select the name of the bank in which the transfer account is present, from the drop down list.
Branch Code
Alphanumeric, Mandatory
Specify the branch code of the bank in which the transfer account is present.
Account Type
Mandatory
Select the account type of the transfer account.
Account Number
Mandatory
Specify the number of the transfer account.
Account Currency
Display
The transaction currency is displayed. You are not allowed to change this value.
Clearing Date
Date Format, Mandatory
Specify the Clearing Date of the payment.
Note
During Surrender transaction, if the third party bank detail is set to ‘Payment Type’, you
can select the ‘Verified’ and ‘Unverified’ bank details from the option list. However, if you
choose the bank account as ‘Unverified’, a warning message will be put-up.
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IBAN
36 Characters Only; Alphanumeric; Optional
Specify the IBAN (International Bank Account Number) of the account holder.
6.2.3.7
Specifying Broker Details
Broker Code
Mandatory
Select the broker code from the option list.
Broker Name
Once you select the broker code, the broker name gets populated.
Parent Broker Code
Once you select the broker code, the parent broker code gets populated.
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. When the Policy Number is selected the split
percentage as mentioned in the policy is defaulted here.
This percentage must not exceed one hundred percent.
6-16
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.
6.2.3.8
Specifying Load Override Details
You can override or alter the value of load 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
Link.
6-17
Refer the section “Load Override Details” Link in the chapter “Policy” for a detailed
discussion of the load override details.
6.2.4
Saving Information Entered
When you have entered all the mandatory information, click ‘Ok’ button.
The following message will be displayed:
The system displays the confirmation message as “Record Successfully Saved”.
This indicates the record has been saved. Click ‘Ok’ button.
On saving the policy, the system provides a feature to withdraw the units.
6.2.4.1
Fee Transaction Generated Prior to Surrender Transaction
During the 100% surrender transaction process, the system will check for any fee transaction
that is Un-Allotted. If there is an Un-allotted fee transaction, then the transaction will be
reversed. The fee must be taken through fee override and the fee transaction will not get
generated.
Note
For 100% Unit Transfer Surrender Transaction with transaction type as ‘BALANCE
TRANSFER OUT’, fee transaction generated for the policy will get reversed & will not be
overridden.
6.2.4.2
Surrender Transaction Generated Prior to Fee Transaction
During the fee redemption transaction generation process, the system will check for any
100% surrender transaction that is Un-Allotted. If there is an Un-allotted transaction, then the
Fee would be taken through fee override and the fee transaction will not get generated.
Note
For 100% Unit Transfer Surrender Transaction with transaction type as ‘BALANCE
TRANSFER OUT’, fee transaction will not be generated & will not be overridden.
6.2.4.3
Surrender Transaction before Annuity Generation
When you have entered all the mandatory information for a 100% surrender transaction,
system will if the annuity is applicable for the policy and for the month.

If annuity is applicable for the policy, system will calculate the next annuity generation
date using annuity frequency & annuity payment lag. If difference between annuity
generation date & 100% surrender transaction date is greater than or equal to 4 days,
then system will check for the funds for which 100% surrender is being processed are
also part of the annuity asset allocation. If funds are common between 100% surrender
transaction & annuity asset allocation then, following warning message will be
displayed.
Annuity transaction is applicable for this policy, are you sure you wish to proceed with this
transaction?
You can select override the message and proceed the transaction.
6-18

If difference between annuity generation date & 100% surrender transaction date is less
than 4 days, then system will check for the funds for which 100% surrender is being
processed are also part of the annuity asset allocation. If funds are common between
100% surrender transaction & annuity asset allocation then error message will be
displayed as “Annuity is in progress, this transaction can not be processed. ”.
You will not be allowed to proceed with this transaction.
6.2.5
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
6.2.6
Automatic Surrender of Policy
The system facilitates automatic surrender of policy when the policy’s market value goes
below certain threshold amount. This amount parameterizes at the system level. This
surrender is paid to the product account and not to the policy holder.
‘Process Automatic Surrender’ and ‘Threshold Policy Market Value’ defined in the Product
maintenance screen accounts for the automatic surrender of policy. This can be explained as
follows:

The user is able to input the threshold value, if Process Automatic Surrender is checked.

The system automatically triggers 100% policy withdrawal transaction, if Threshold
Policy Market value is less than this threshold amount.
The System then triggers an automatic surrender transaction with the following parameters:

Portfolio Surrender flag as True

Payment mode as transfer

Payment type as Product

Asset allocation with all funds having balances and percentage applied as 100%
6-19
Refer to the chapter “Product and Batch Activities” for further information on Automatic
Surrender.
6.3
Policy Transaction Surrender Summary Screen
You can invoke the ‘Policy Transaction-Surrender Summary’ screen by typing ‘LESPLSUR’
in the field at the top right corner of the Application tool bar and clicking on the adjoining arrow
button. The following screen is displayed:
6.3.1
Retrieving Surrender Transaction in Policy Transaction Surrender
Screen
You can retrieve a previously entered record in the Summary screen, as follows:
Specify any or all of the following details in the Policy Transaction Surrender Summary
screen:
1. Select the status of the record in the Auth Status field. If you choose the “Blank Space”
option, then all the records are retrieved.
2. Select the status of the record in the Record Status field. If you choose the “Blank Space”
option, then all the records are retrieved.

Policy Txn Number

Policy Number

Product ID

Transaction Type

Transaction Date

Policy Holder ID

Transaction Reference Number
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.
6-20
Note
You can also retrieve the individual record detail from the detail screen by doing query in
the following manner:–
Press F7.
–
Input the Product ID.
–
Press F8.
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:-
6.3.2

Search by A%: System will fetch all the records whose Product ID starts from Alphabet
‘A’. For example, AGC17, AGVO6, AGC74 etc.

Search by %7: System will fetch all the records whose Product ID ends by numeric
value’ 7’. For example, AGC17, GSD267, AGC77 etc.

Search by %17%:- System will fetch all the records whose Product ID contains the
numeric value 17. For example, GSD217, GSD172, AGC17 etc.
Editing Surrender Transaction
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 Transaction Surrender 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
Transaction Surrender 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 Transaction Surrender Detail screen is
closed and the changes made are reflected in the Policy Transaction Surrender Summary
screen.
6.3.3
Viewing Surrender Transaction
To view a Surrender Transaction you have previously entered, you must retrieve the same in
the Policy Transaction Surrender Summary screen, as follows:
1. Invoke the Summary Screen from the Browser.
2. Select the status of the Surrender Transaction 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.
6-21
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 Transaction Surrender screen is opened in view mode.
6.3.4
Deleting Surrender Transaction
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
Transaction Surrender Summary screen, as follows:
1. Invoke the Policy Transaction Surrender 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 Transaction Surrender 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.
6.3.5
Authorizing Surrender Transaction
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 Transaction Surrender
Summary screen.
1. Invoke the Policy Transaction Surrender 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 Transaction Surrender
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 record.
6.3.6
Amending Surrender Transaction
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 Transaction Surrender 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.
6-22
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 Transaction Surrender 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.
6.3.7
Authorizing Amended Surrender Transaction
An amended Surrender Transaction 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.
6.3.8
Reversing Surrender Transaction
You can reverse a transaction 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 Transaction Surrender 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 Transaction Surrender 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.
Refer to the chapter “Allocation Details” for information on the Allocation Details screen
6-23
7. Policy Status Change
7.1
Introduction
When a policy is created, the status of the same is ‘Active’. It may be required to change the
status of the policy. A status change may, or may not have a processing impact and
depending on the change in status, a restriction may be placed on the policy.
Note
The status of a policy can be changed through the Fund Manager component only.
The Policy Status Change screen allows you to change the status of a Policy. The next
section gives you step-by-step instructions to do the same.
7.2
Changing Status of Policy
The following are the steps you need to follow to change the status of a policy. Each of these
steps is explained in detail in subsequent sections.
7.2.1

Invoke the Policy Status Change screen.

Enter information in the Policy Status Change screen.

Save the information entered.
Invoking Screen
You can invoke the ‘Policy Status Change Detail’ screen by typing ‘LEDPLSTA’ in the field at
the top right corner of the Application tool bar and clicking on the adjoining arrow button.
7-1
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 Policy Status Change.
7.2.2
Fields in Policy Status Change Screen
Status Change Details Section
Policy Number
Mandatory
Enter the number of the Policy whose status you are changing.
Note
You have the option of using the Policy Find Options screen to enter the Policy Number.
This screen is invoked when you click ‘Fetch Values’ button.
This procedure is similar to the one for a Top Up Transaction.
Rule Effective Date (dd/MM/yyyy)
Mandatory
When you enter the Policy Number, the Rule Effective Date, which is the date from which the
new status of the Policy is effective, will be displayed. You will not be allowed to change this
field.
7-2
Present Status
Display
When you enter the Policy Number, the existing status of the Policy will be displayed. You will
not be allowed to change this field.
Present Status Code
Display
Each status carries a Status Code. The existing status code of the Policy will be displayed.
You will not be allowed to change this field.
New Status
Mandatory
Select the new status of the Policy from the option list.
Note
–
When you change the status of a Policy to ‘Death Without Commutation’, ‘Death
With Commutation’, ‘Policy Holder Retirement’ and ‘Early Policy Holder
Retirement’, all standing instructions on premium, annuity, recurring switch, will be
cancelled.
–
When you change the status of a Policy to ‘Matured’, surrenders on the Policy will
not be validated against the ‘Surrender Limit’. The Policy Holder will be allowed to
carry out as many surrender transactions as he wishes.
New Status Code
Display
When you select the changed status of the Policy, the new status code will be displayed. You
will not be allowed to change this field.
Generate Redemption Transaction
Mandatory
If you want redemption transaction to be generated for the policy, select ‘Yes’. Else select
‘No’.
Note
This field will be enabled only for the options ‘Claim’ and ‘Surrender’ in the drop-down list
against the field ‘New Status’.
Surrender Money Payable
Mandatory
Indicate to whom the surrender money is payable.
Offset Value
Optional, Numerical
Specify the amount that will be deducted from the surrender money payable to the Policy
Holder.
7-3
Back Date Surrender
Optional
During a status change to ‘Surrender’ or ‘Claim’, a 100% redemption transaction will be
generated. If you want redemption transaction to be back dated, select ‘Yes’. The transaction
date can then be entered in the field ‘Last Transaction Date’.
Note
This field will be enabled only for the options ‘Claim’ and ‘Surrender’ in the drop-down list
against the field ‘New Status’.
Last Transaction Date (dd/MM/yyyy)
Mandatory if box ‘Back Date Surrender’ is checked
Initially, this field will display the date on which the last transaction was carried out. If you have
checked the box ‘Back Date Surrender’, you can change this date.
Note
The date that you enter here, should necessarily be between the date that was originally
displayed in this box, and today’s date.
Average Salary (Last 2 Years)
Optional
Enter the average salary of the Policy Holder in the last two years.
Note
This field will be enabled only for the options ‘Death Without Commutation’, ‘Death With
Commutation’, ‘Policy Holder Retirement’, and ‘Early Policy Holder Retirement’ in the
drop-down list against the field ‘New Status’.
Date of Death (dd/MM/yyyy)
Optional
Enter the date of death of the Policy Holder.
Note
This check box will be enabled only for the options ‘Death Without Commutation’, ‘Death
With Commutation’, ‘Policy Holder Retirement’ and ‘Early Policy Holder Retirement’ in the
drop-down list against the field ‘New Status’.
Allow Surrender
Mandatory only if the New Status is ‘Death Without Commutation’
Select ‘Yes’ to indicate the Policy can be surrendered.
Allow Closure
Mandatory only if the New Status is ‘Death Without Commutation’
Select ‘Yes’ to indicate the Policy can be closed.
7-4
Allow Transfer
Mandatory only if the New Status is ‘Death Without Commutation’
Select ‘Yes’ to indicate the Policy can be transferred.
Adjustment Transaction Type
Mandatory only if the New Status is ‘Claim’
Select the adjustment transaction type from the option list.
Description
Optional
You may enter any remarks on the status change of the Policy.
7.2.2.1
Policy Details section
The following policy details are displayed in the Policy Details section, when you select a
Policy Number:
7.2.2.2

Policy Holder Name

Product Name

Policy Base Currency

Policy End Date (dd/MM/yyyy)
Payment Details section
The payment details displayed in this section will depend on whether the surrender money is
payable to the client or the product. If the surrender money is payable to the client, the
payment details of the client will be displayed. If payable to the product, the payment details
of the product will be displayed.
7.2.3

Bank

Branch

Account Number

Account Type

Account Currency

Account Name

IBAN
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.
7-5
7.3
Policy Status Change Summary Screen
You can invoke the ‘Policy Status Change Summary’ screen by typing ‘LESPLSTA’ in the field
at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
The following screen is displayed:
7.3.1
Retrieving Policy Status in Policy Status Change Screen
You can retrieve a previously entered record in the Summary screen, as follows:
Specify any or all of the following details in the Policy Status Change 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.

Policy Number

Rule Effective Date

Present Status Code

New Status Code
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:–
Press F7.
–
Input the Policy Number.
–
Press F8.
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.
7-6
Example
You can search the record for Policy Status by using the combination of % and alphanumeric
value as follows:-
7.3.2

Search by A%: System will fetch all the records whose Policy Number starts from
Alphabet ‘A’. For example, AGC17, AGVO6, AGC74 etc.

Search by %7: System will fetch all the records whose Policy Number ends by numeric
value’ 7’. For example, AGC17, GSD267, AGC77 etc.

Search by %17%:- System will fetch all the records whose Policy Number contains the
numeric value 17. For example, GSD217, GSD172, AGC17 etc.
Editing Policy Status Change
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 Status Change 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. Click ‘Search’ button. 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
Status Change 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 Status Change Detail screen is closed and
the changes made are reflected in the Policy Status Change Summary screen.
7.3.3
Viewing Policy Status Change
To view a Policy Status Change you have previously entered, you must retrieve the same in
the Policy Status Change Summary screen, as follows:
1. Invoke the Summary Screen from the Browser.
2. Select the status of the Policy Status Change 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 Status Change screen is opened in View mode.
7.3.4
Deleting Policy Status Change
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
Status Change Summary screen, as follows:
1. Invoke the Policy Status Change Summary screen from the browser.
7-7
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 Status Change 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.
7.3.5
Authorizing Policy Status Change
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 Status Change Summary
screen.
1. Invoke the Policy Status Change 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 Status Change 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 record.
7.3.6
Amending Policy Status Change
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 Status Change 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.
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 amend. The Policy Status Change 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.
7.3.7
Authorizing Amended Policy Status Change
An amended Policy Status Change must be authorized for the amendment to be made
effective in the system.
7-8
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.
7-9
8. Cession Maintenance
8.1
Introduction
In some cases, Policy Holders with endowment policies might desire to ‘cede’ their policies.
This would typically mean that ownership of the policy might be ‘ceded’ or transferred to
another individual. The ‘ceding’ could be either temporary or permanent, as the case may be.
Note
Cession Maintenance can be carried out through the Fund Manager component only.
The Cession Maintenance screen allows you to maintain various Cession IDs. These can be
attached to the necessary policies. The next section gives you step-by-step instructions to do
the same.
8.2
Creating and Saving Cession ID
The following are the steps you need to follow to maintain a Cession ID. Each of these steps
is explained in detail in subsequent sections.
8.2.1

Invoke the Cession Maintenance screen.

Enter information in the Cession Maintenance screen.

Save the information entered.
Invoking Screen
You can invoke the ‘Cession Maintenance Detail’ screen by typing ‘LEDCMSD’ in the field at
the top right corner of the Application tool bar and clicking on the adjoining arrow button.
The following screen is invoked:
8-1
8.2.2
Fields in Cession Maintenance Screen
8.2.2.1
Cession Maintenance Section
In the Cession Maintenance section, you will have to enter information in the following fields:
Cession ID
3 Characters, Alphanumeric, Mandatory
Specify a unique identification for the particular cession.
Cession Type
Mandatory
Select the appropriate type of cession that applies to this Cession ID, from the drop-down list.
The cession type could be either ‘Permanent’ or ‘Temporary’.
Cession Description
30 Characters, Alphanumeric, Mandatory
Give a description of the cession that is being maintained in this record.
Generate Policy Transfer Transaction?
Display
You can select ‘Yes’ to generate policy transfer transaction. Else select ‘No’.
Allow Policy Surrender?
Optional
You can select ‘Yes’ to allow policy surrender.
Allow Policy Closure?
Optional
You can select ‘Yes’ to allow policy closure.
You will need to carry out the following steps in order to close a policy:

Amend the Maturity Date of the policy through the Policy Find Options screen.

Then change the status of the policy to ‘Matured’, through the Policy Status Change
screen.
Note
This check box will be enabled only if the Cession Type is ‘Temporary’.
8.2.3
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.
8-2
8.3
Cession Maintenance Summary Screen
You can invoke the ‘Cession Maintenance Summary’ screen by typing ‘LESCMSD’ in the field
at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
The following screen is displayed:
8.3.1
Retrieving Cession Maintenance in Cession Maintenance Screen
You can retrieve a previously entered record in the Summary screen, as follows:
Specify any or all of the following details in Cession 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.

Cession ID

Cession Type
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:
–
Press F7.
–
Input the Product ID.
–
Press F8.
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:
8-3
You can search the record for Product Type by using the combination of % and alphanumeric
value as follows:
8.3.2

Search by A%: System will fetch all the records whose Product Type starts from
Alphabet ‘A’. For example, AGC17, AGVO6, AGC74 etc.

Search by %7: System will fetch all the records whose Product Type ends by numeric
value’ 7’. For example, AGC17, GSD267, AGC77 etc.

Search by %17%:- System will fetch all the records whose Product Type contains the
numeric value 17. For example, GSD217, GSD172, AGC17 etc.
Editing Cession Maintenance
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 Cession 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. Click ‘Search’ button. 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
Cession 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 Cession Maintenance Detail screen is closed and
the changes made are reflected in the Cession Maintenance Summary screen.
8.3.3
Viewing Cession Maintenance
To view a Cession Maintenance you have previously entered, you must retrieve the same in
the Cession Maintenance Summary screen, as follows:
1. Invoke the Cession Maintenance Summary Screen from the Browser.
2. Select the status of the record 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 Cession Maintenance screen is opened in view mode.
8.3.4
Deleting Cession Maintenance
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
Cession Maintenance Summary screen, as follows:
1. Invoke the Cession Maintenance Summary screen from the browser.
2. Select the status of the record that you want to retrieve for deletion.
8-4
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 Cession 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.
8.3.5
Authorizing Cession Maintenance
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 Cession Maintenance Summary
screen.
1. Invoke the Cession 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 Cession 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.
8.3.6
Amending Cession Maintenance
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 Cession 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.
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 amend. The Cession 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.
8.3.7
Authorizing Amended Cession Maintenance
An amended Cession Maintenance 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.
8-5
9. Policy Cession Maintenance
9.1
Introduction
Whenever a policy is marked with a Cession ID, the parameters that characterize the Cession
ID will affect the subsequent events in the policy, such as generation of transfer transactions,
allowing of redemption transactions and policy closure, or policy surrender.
Note
Cession IDs can be attached to policies through the Fund Manager component only.
The Policy Cession Maintenance screen allows you to attach a Cession ID to a policy. The
next section gives you step-by-step instructions to do the same.
9.2
Attaching Cession ID to Policy
The following are the steps you need to follow to define a Product. Each of these steps is
explained in detail in subsequent sections.
9.2.1

Invoke the Policy Cession Maintenance screen.

Enter information in the Policy Cession Maintenance screen.

Save the information entered.
Invoking Screen
You can invoke the ‘Policy Cession Maintenance Detail’ screen by typing ‘LEDPLCES’ in the
field at the top right corner of the Application tool bar and clicking on the adjoining arrow
button.
The following screen is invoked:
9-1
9.2.2
Fields in Policy Cession Maintenance Screen
9.2.2.1
Policy Cession Maintenance section
In the Policy Cession Maintenance section, you will have to enter information in the following
fields:
Policy Number
Alphanumeric, Mandatory
Select the number of the Policy that must be marked with a Cession ID.
Note
This number must represent an authorized, enabled and active policy (for which at least
one underlying transaction has been generated, authorized and allocated).
The Policy Number entered here must represent a Policy that comes under a Product that is
authorized and active.
You can use the button alongside this field to view a list of valid policies and select the
required one.
When you specify the Policy Number, all the details of the Policy are picked up from the policy
record and populated in the corresponding fields in this form.
Cession Date
Display
The date on which the transfer is affected, is the Policy Cession Date. It is deemed to be the
application date itself, which is displayed here by default. It cannot be changed.
Policy Holder ID
Display
The name and ID of the Policy Holder whose Policy is to be marked with a Cession ID, is
displayed here.
Product ID
Mandatory
Explanation needed from Dev/ Testing team.
Cession Type
Mandatory
Select the Cession Type that is to be applied to the specified Policy, from the drop-down list.
Note
If the type chosen here is ‘Temporary’, then only the Cession ID must be captured with
remarks. If it is ‘Permanent’, then the Transferee ID must also be captured.
Cession ID
Mandatory
Select the Cession ID that is to be applied to the specified policy, from the option list.
9-2
Note
The list will contain permanent cessions if the Cession Type specified is ‘Permanent’ and
temporary cessions if the Cession Type chosen is ‘Temporary’.
Transferee ID
Mandatory if the Cession Type is ‘Permanent’
Select, from the option list, the ID of the Policy Holder to whom the policy must be transferred,
when it is marked with the specified Cession ID. This must be a valid Unit Holder in the
system, and must not have a Policy in the same Product.
Cession Remarks
255 Characters Maximum, Alphanumeric, Optional
You can capture any descriptive/narrative text pertaining to this Policy Cession record in this
field.
Note
If the ‘Cession Applicable’ field at the ‘Product Level’ is checked in the ‘Cession Maintenance’ screen, the system will allow the policies under this product for Policy Cession
Maintenance.
9.2.2.2
Cessionary Details Section
In the Cessionary Details section, you will have to enter information in the following fields:
Cessionary Name
Optional
Specify the name of the cessionary (policy-holder ceding the policy).
Cessionary Ref Number
16 Characters Alphanumeric, Optional
Specify a unique reference number that will be used to identify the transaction in the system.
Contact Person
40 Character Maximum, Alphanumeric, Optional
For corporate investors, enter the name of the contact person at the cessionary office.
Address Lines 1-2
Each line is 255 Character Maximum, Alphanumeric.
Specify the postal address that is to be used for correspondence with the cessionary.
City
40 Character Maximum, Alphanumeric, Optional
Specify the name of the city of residence of the cessionary.
State/ Country
60 Character Maximum, Alphanumeric, Optional
Specify the state/country in which the city of residence of the investor is cessionary.
9-3
Zip Code
10 Characters Maximum, Alphanumeric, Optional
Specify the zip code of the specified city of residence of the cessionary.
Phone Number
15 Character Maximum, Alphanumeric, Optional
Enter the contact telephone numbers of the cessionary.
Fax Number
15 Character Maximum, Alphanumeric, Optional
Enter the fax number of the cessionary.
E - Mail ID
30 Characters Maximum, Alphanumeric; Optional
Specify the Email address of the cessionary.
9.2.3
Saving Information Entered
When you have entered all the mandatory information, click ‘Ok’ button.
The following message will be displayed:
The system displays the confirmation message “Record Successfully Saved”.
This indicates the record has been saved. Click ‘Ok’ button.
9.3
Policy Cession Summary Screen
You can invoke the ‘Policy Cession Summary’ screen by typing ‘LESPLCES’ in the field at the
top right corner of the Application tool bar and clicking on the adjoining arrow button.
The following screen is displayed:
9.3.1
Retrieving Policy Cession in Policy Cession Screen
You can retrieve a previously entered record in the Summary screen, as follows:
9-4
Specify any or all of the following details in Policy Cession Summary screen:

Select the status of the record in the Authorized field. If you choose the “Blank Space”
option, then all the records are retrieved.

Select the status of the record in the Open field. If you choose the “Blank Space” option,
then all the records are retrieved.

Product ID

Effective Date
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:
–
Press F7.
–
Input the Product ID.
–
Press F8.
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 Type by using the combination of % and alphanumeric
value as follows:
9.3.2

Search by A%: System will fetch all the records whose Product Type starts from
Alphabet ‘A’. For example, AGC17, AGVO6, AGC74 etc.

Search by %7: System will fetch all the records whose Product Type ends by numeric
value’ 7’. For example, AGC17, GSD267, AGC77 etc.

Search by %17%:- System will fetch all the records whose Product Type contains the
numeric value 17. For example, GSD217, GSD172, AGC17 etc.
Editing Policy Cession
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 Cession 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. Click ‘Search’ button. 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
Cession Detail screen is displayed.
5. Select Unlock Operation from Action list to modify the record. Modify the necessary
information.
9-5
6. Click Save to save your changes. The Policy Cession Detail screen is closed and the
changes made are reflected in the Policy Cession Summary screen.
9.3.3
Viewing Policy Cession
To view a Policy Cession you have previously entered, you must retrieve the same in the
Policy Cession Summary screen, as follows:
1. Invoke the Policy Cession Summary Screen from the Browser.
2. Select the status of the record 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 Product With-Holding Tax screen is opened in view mode.
9.3.4
Deleting Policy Cession
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
Cession Summary screen, as follows:
1. Invoke the Policy Cession 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 Cession 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.
9.3.5
Authorizing Policy Cession
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 Cession Summary screen.
1. Invoke the Policy Cession 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 Cession 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.
9-6
9.3.6
Amending Policy Cession
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 Cession 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. .
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 amend. The Policy Cession 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.
9.3.7
Authorizing Amended Policy Cession
An amended Product With-Holding Tax 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.
9-7
10. Policy Journal Maintenance
10.1 Introduction
Whenever you need to make an adjustment to the annuity amount, you need to post it as a
policy journal entry.
Authorization of policy journal creates a policy transaction on par with normal annuity
transaction. Appropriate tax is deducted from the gross annuity amount and is posted as
annuity tax transaction. On authorization of the journal entry, it will generate the annuity
transaction with gross annuity amount.
The Policy Journal Maintenance screen allows you to make adjustments to the annuity
amount of a policy. The next section gives you step-by-step instructions to do the same.
10.2 Maintaining Journal Entries for Policy
The following are the steps you need to follow to make a journal entry for a policy. Each of
these steps is explained in detail in subsequent sections.
10.2.1

Invoke the Policy Journal Maintenance screen.

Enter information in the Policy Journal Maintenance screen.

Save the information entered.
Invoking Screen
You can invoke the ‘Policy Journal Maintenance Detail’ screen by typing ‘LEDPLJNL’ in the
field at the top right corner of the Application tool bar and clicking on the adjoining arrow
button.
The following screen is invoked:
10-1
Select ‘New’ from the Actions menu in the Application tool bar or click new icon to enter the
details of the Policy Journal Maintenance.
10.2.2
Fields in Policy Journal Maintenance Screen
10.2.2.1 Policy Journal Section
Journal Number
System Generated
This is a unique identification for the journal entry made for the policy. It is generated by the
system when all details that are mandatory for the journal entry have been successfully
entered, and the policy journal entry is saved.
This journal number identifies the first journal entry made into a policy, and all subsequent
journal entries into this Policy will have system generated sequential journal transaction
numbers.
Journal Type
Mandatory
Select the type of journal entry you wish to make. Currently system supports only one type of
journal entry, that is, Annuity Adjustment.
Policy Number
Mandatory
Select the Policy on which you want maintain a journal. You can use the Find Policy Options
screen. You can invoke the same by clicking on the option list.. The Policy selected must be
an authorized, active Policy on which the underlying initial investment and Annuity transaction
has already been generated.
Journal Currency
Display
When the Policy Number is selected, the corresponding Plan (or Policy) Base Currency is
displayed as the default journal currency, from the Policy details record. This currency cannot
be changed.
Reference Number
16 Characters Maximum, Alphanumeric, Mandatory
Specify a unique alphanumeric identifier for the journal entry. You will use this reference
number to track this entry subsequently.
Policy SI Number
Mandatory
This number is generated by the system. It represents the number of annuity/ premium
payments between the Start Date and End Date specified for the annuity/ premium payment.
Journal Txn Date
Mandatory
The Journal Transaction Date signifies the date on which the journal entry is made into the
system. You can enter a backdated transaction here, but this must not be earlier than the first
Rule Effective Date of the policy.
By default, the application date is displayed in this field.
10-2
Policy Holder
Display
When the Policy Number is selected, the name of the corresponding Policyholder is displayed
here.
10.2.2.2 Outstanding Payment Section
From Date (DD/MM/YYYY)
Mandatory
Specify the date that marks the beginning of the period for which the journal entry is made.
This date cannot be a future date.
Note
This date cannot be lesser than or equal to the date of policy creation.
To Date (DD/MM/YYYY)
Mandatory
Specify the date that marks the end of the period for which the journal entry is made. This date
cannot be a future date.
Adjustment for Previous Cycle
Optional
Select ‘Yes’, to indicate that the journal entry being posted is an adjustment for the previous
cycle.
Journal Amount
Numeric, Conditional
Enter the outstanding amount to be paid to the customer. System will treat the value specified
here as the gross annuity amount.
Note
The field will be disabled if the ‘Adjustment for Previous Cycle’ option is checked.
Net Annuity Amount
Numeric, Conditional
Enter the adjusted net annuity amount here. The annuity details will be calculated by the
system based on the amount you enter here on the journal transaction date and the tax ledger
entries will be made for the new net annuity amount.
Note
This field is enabled only if you have selected the option ‘Adjustment for Previous Cycle’.
WHT Amount
Numeric, Conditional
Specify the amount of with holding that is applicable on the annuity amount. The withholding
tax details will be calculated by the system based on the amount you enter here on the journal
transaction date and the tax ledger entries will be made for the new withholding tax amount.
10-3
If a Product is not mapped with ‘Withholding Tax’ then user can uncheck ‘Adjustment for
Previous Cycle’ otherwise system will not allow the user to save the journal without
maintaining WHT Amount. If the user maintains WHT Amount as '0' system will through an
error saying "WHT Amount should be greater than 0".
Note
This field is enabled only if you have selected the option ‘Adjustment for Previous Cycle’.
Remarks
You can enter the important information any, in this field
10.2.2.3 Payment Details Section
You can select the mode of payment and select the type of payment in this section.
Payment Mode
Alphanumeric, Mandatory
Select the mode of payment as Transfer.
Payment Type
Mandatory
Specify whether the payment will be made to the Policy Holder or to a third party.
Maintained Bank Accounts
Mandatory
Select the bank account of the Policy Holder.
The following bank account details will be displayed:

Bank

Branch

Account Number

Account Type

Account Currency
IBAN
36 Characters Only; Alphanumeric; Optional
Specify the IBAN (International Bank Account Number) of the account holder.
Saving the information entered
When you have entered all the mandatory information, click ‘Ok’ button.
The following message will be displayed:
The system displays the confirmation message “Record Successfully Saved”.
This indicates the record has been saved. Click ‘Ok’ button.
10-4
10.3 Policy Journal Maintenance Summary Screen
You can invoke the ‘Policy Journal Maintenance Summary’ screen by typing ‘LESPLJNL’ in
the field at the top right corner of the Application tool bar and clicking on the adjoining arrow
button. The following screen is displayed:
10.3.1
Retrieving Policy Journal Entry in Policy Journal Maintenance Screen
You can retrieve a previously entered record in the Summary screen, as follows:
Specify any or all of the following details in the Policy Journal Maintenance Summary screen:

Select the status of the record in the Authorized field. If you choose the “Blank Space”
option, then all the records are retrieved.

Select the status of the record in the open field. If you choose the “Blank Space” option,
then all the records are retrieved.

Journal Txn Number

Reference Number

Journal Txn Date

From Date

To Date
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:–
Press F7.
–
Input the Journal Number.
–
Press F8.
You can perform Edit, Delete, Amend, Authorize, Reverse, Confirm operation by selecting
from the Action list.
10-5
You can also search the record by using combination of % and alphanumeric value.
Example
You can search the record for Journal Number by using the combination of % and
alphanumeric value as follows:-
10.3.2

Search by A%: System will fetch all the records whose Journal Number starts from
Alphabet ‘A’. For example, AGC17, AGVO6, AGC74 etc.

Search by %7: System will fetch all the records whose Journal Number ends by numeric
value’ 7’. For example, AGC17, GSD267, AGC77 etc.

Search by %17%:- System will fetch all the records whose Journal Number contains the
numeric value 17. For example, GSD217, GSD172, AGC17 etc.
Editing Policy Journal Entry
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 Journal 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. Click ‘Search’ button. 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
Journal 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 Journal Maintenance Detail screen is closed
and the changes made are reflected in the Policy Journal Maintenance Summary screen.
10.3.3
Viewing Policy Journal Entry
To view a Policy Journal Entry you have previously entered, you must retrieve the same in the
Policy Journal Maintenance Summary screen, as follows:
1. Invoke the Summary Screen from the Browser.
2. Select the status of the Policy Journal Maintenance 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 Journal Maintenance screen is opened in View mode.
10.3.4
Deleting Policy Journal Entry
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
Journal Maintenance Summary screen, as follows:
10-6
1. Invoke the Policy Journal Maintenance Summary screen from the browser.
2. Select the status of the record as “Unauthorized’ 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 Journal 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.
10.3.5
Authorizing Policy Journal Entry
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 Journal Maintenance
Summary screen.
1. Invoke the Policy Journal 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 Journal 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 record.
10.3.6
Amending Policy Journal Entry
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 Journal 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.
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 amend. The Policy Journal 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.
10.3.7
Authorizing Amended Policy Journal Entry
An amended Policy Journal Entry must be authorized for the amendment to be made effective
in the system.
10-7
Authorization of amended records can be done from Fund Manager Module and Agency
branch Module. The process of authorization is subsequently the same as that for normal
transactions.
10-8
11. Batch Activities
11.1 Introduction
For the purpose of processing transactions in the LEP products, the system provides a
number of processes that must be initiated by the user during either the End of Day Processes
(EOD) or Beginning of Day Processes (BOD). These processes and their functioning are
explained below.
11.2 Sequence of Batch Functions
The following table gives you the sequence of the Batch Functions, the Activity and whether
the Activity is an EOD or BOD function.
Activity
EOD/BOD
LEP - Plan Funding Repayment
EOD
LEP - Generate Plan Transactions
EOD
LEP - Update Product Fiscal Year
EOD
LEP - Update Plan Transaction Allotted Status
EOD
LEP - Plan Financial Bucket Adjustment
EOD
LEP - Plan Annuity 5/20 Validation Process
EOD
LEP – 120% Rule Support
EOD
LEP – NAV Correction
EOD
LEP - Set Latest Rule for Product
BOD
LEP - Set Latest Rule for Plan
BOD
LEP - Plan Anniversary Value Computation
BOD
LEP - Plan Annuity Escalations
BOD
LEP -Plan Recurring Switch Escalations
BOD
LEP - Plan Premium Escalations
BOD
LEP -Recurring Plan Annuity Processing
BOD
LEP -Recurring Plan Switch Processing
BOD
LEP -Recurring Plan Premium Processing
BOD
LEP -Plan Funding Repayment
BOD
LEP - Generate Plan Redemption Transactions for Periodic Fees
BOD
LEP - Process Plan Surrender
BOD
LEP - BOD Plan Transaction Generations
BOD
11-1
11.3 Batch Functions
The various Batch Functions are explained below:
11.3.1
LEP - Plan Funding Repayment
Funding is a feature where a part of the initial investment and subsequent top ups, if any, is
retained by the Life Company and then paid back to the customers in equal installments. The
customer receives the principal amount and not the interest earned on the same.
The Funding Factor, which is the percentage of the initial contribution or top ups which is
retained by Life Company, and the Funding Frequency, which is the frequency at which the
installment is paid back to the customer, are specified for the product. The Repayment Period,
which is the period within which the entire amount is to be paid back to the customer, is also
specified.
This EOD Process carries out the funding repayment for the policies marked for the same.
This is also a BOD Process.
11.3.2
LEP - Generate Plan Transactions
A policy transaction might involve one or more funds. This process generates one transaction
per fund. The process will pick up all policy transactions that do not have underlying UT
transactions generated.
The system intimates the user upon completion of the activity and the successful generation
of underlying transactions.
This process is also scheduled as a BOD process to take care of all the system generated
policy transactions that might have occurred as a result of other Batch Activities.
Note
If a policy transaction triggers a number of underlying subscription transactions at the fund
level, the process of generation must be successful for each of these underlying transactions at the fund level. If not, the generation is aborted for all underlying transactions for
that policy.
11.3.3
LEP - Update Product Fiscal Year
This process updates the fiscal year dates for all products for which the fiscal year end date
is the next working day, on the application date.
The fiscal year is updated to the next fiscal year.
11.3.4
LEP - Update Plan Transaction Allotted Status
A policy transaction is considered allotted only if all the underlying Unit Trust (UT) transactions
are allotted. This batch process checks if all the underlying UT transactions are allotted and
if they are, it marks the policy transactions as allotted.
11-2
11.3.5
LEP - Plan Financial Bucket Adjustment
This process facilitates the adjustment of investment in the funding bucket in the event of
repayment of the funded amount. The process will also adjust the funded units if there is a
reversal of a surrender or top up transaction.
The process works as follows:
11.3.6

On the application date, the process identifies the funding amount repayment
transactions at a policy level for funded endowment products

The units repaid for these transactions are identified

The funding units in the funded bucket are reduced for each of the funds by subtracting
the funding units with the funding repaid units.
LEP - Plan Annuity 5/20 Validation Process
When a policy is created and authorized, this EOD process performs the following functions:

The policy amount is allotted into the underlying portfolio and the Net Invested Amount
(NIA) is validated against the minimum and the maximum annuity ratio specified at the
policy level. The ad hoc (top up) contribution is marked as ‘Inclusive’ even if it is
‘Exclusive’, if it violates the minimum/maximum annuity ratio specified.

A procedure is then used to validate the 5/20 rule, using the annuity amount specified
and the NIA as parameters and an error report is logged if the 5/20 Rule is violated on
any on any of the following events:
–
Saving of a policy
–
Amendment of a policy
–
Top Up transaction
–
On the Anniversary Date
–
Anniversary Escalations
11.3.6.1 5/20 Rule
The annuity amount that is paid to the policyholder must be within the range of the Minimum
Annuity Ratio (5%) and the Maximum Annuity Ratio (20%) of the Net Investible amount (NIA).
The Net Investible Amount is the investment amount minus the initial fees and charges. The
annuity should not be accepted if the annuity amount either falls below the 5% threshold of
the NIA, or exceeds the 20% threshold of the NIA and all inclusive top up transactions.
Consider the example given below:
Case A
Let us consider a Policy Holder who buys a policy in an ELLA product. He initially contributes
60000 currency units, net of initial charges on 1st January 2005. On 1st January 2005 (EOD),
the 5/20 Rule batch checks the annuity amount, which has been specified as 3000 currency
units, against the NIA (60,000 currency units). This amounts to 5% of the NIA, per month for
a period of 5 years. There is no violation of the rule here. Now let us suppose the Policy
Holder tops up (transaction T1) his investment in the policy by 40000 currency units (top up
being ‘Inclusive) on 1st April 2005. The total contribution has now increased to 100,000
currency units.
On 1st April 2005 (EOD), the 5/20 Rule batch checks the annuity amount specified as 3000
currency units against total contribution amount (100,000 currency units), which amounts to
less than 5% of the total contribution amount, thus violating the 5/20 Rule and logs an entry
into the error report with the reason for failure of the 5/20 check. Subsequent to above, for
11-3
any of the other top up transactions, the system considers the same NIA, initial top up amount
and the latest top up amount for the 5/20 validation in the policy year.
Case B
Let us consider a Policy Holder who buys a policy in an ELLA product. He initially contributes
60000 currency units, net of initial charges on 1st January 2005. On 1st January 2005 (EOD),
the 5/20 Rule batch checks the annuity amount, which has been specified as 3000 currency
units, against the NIA (60,000 currency units), which amounts to 5% of the NIA, per month for
a period of 5 years. There is no violation of the rule here. Now let us suppose the Policy
Holder tops up (transaction T1) his investment in the policy by 40000 currency units (top up
being ‘Exclusive’) on 1st April 2005. The total contribution has now increased to 100,000
currency units.
On 1st April 2005 (EOD), the 5/20 Rule batch checks the annuity amount, which is specified
as 3000 currency units, against total contribution amount (100,000 currency units). This
amounts to less than 5% of the total contribution amount and hence violates the 5/20 Rule.
The system marks the ‘Exclusive’ top up transaction (T1) as ‘Inclusive’ and logs an entry into
the error report with the reason for failure of the 5/20 check. For any subsequent top up
transactions, the system considers the same NIA, initial top up amount and the latest top up
amount for the 5/20 validation in the policy year.
Note
As seen in the case above, the initial top up amount T1 was made ‘Inclusive’. This amount
will be considered for any subsequent validation as an ‘Inclusive’ top up and not an ‘Exclusive’ top up.
The logging in of the error report and the change/adjustment in annuity details are
operationally controlled.
Note
The system considers the following formulae while calculating the annuity amount:
Case 1: When top up is ‘Inclusive’
Annuity Amount >= Minimum Annuity Percentage * (Latest Anniversary Value + All ‘Inclusive’
Net contributions made during the year
The current top up amount will be included in the contribution
Annuity Amount <= Maximum Annuity Percentage * (Latest Anniversary Value + All ‘Inclusive’
net contributions made during the year
The current top up amount will be included in the contribution
Case 2: When top up is ‘Exclusive’
Annuity Amount >= Minimum Annuity Percentage * (Latest Anniversary Value + All ‘Inclusive’
Net contributions made during the year + Current ‘Exclusive’ net top up)
Annuity Amount <= Maximum Annuity Percentage * (Latest Anniversary Value + All ‘Inclusive’
net contributions made during the year + Current ‘Exclusive’ net top up)
11-4
11.3.7
LEP – 120% Rule Support
This is an EOD activity which checks all the policies that come under ‘Endowment Products’
and have a Top Up, Premium Transaction or a Premium Escalation on the particular day. This
process is carried out for each policy. The 120% Rule triggers on the following events:

Top Up Transactions

Premium/Premium Escalation Due Date
If the date happens to be less than the Policy Anniversary Date, the projected premiums for
the rest of the policy year will be considered for the 120% Rule validation. The system will sum
up all the contributions (Initial Investment, if any + Top Ups, if any + Premiums, both, paid and
projected) in the current policy year.
Say, for example, the contribution amount sums up to ‘X’ Rands. This process will sum up the
contributions (Initial Investment, if any + Top Ups, if any +Premiums paid) in the two policy
years.
Note
A policy year is a year between two Policy Anniversary Dates.
Let us say the contribution amount sums up to ‘Y’ Rands in the first policy year and ‘Z’ Rands
in the second year. The system will compare the higher contribution amount of the two years,
against the amount ‘X’ Rands.
If ‘X’ exceeds the higher, say ‘Y’, by more than 120%, the Policy Maturity Date will be reset
(New Maturity Date = Current Application Date + Minimum Term). The existing rule will not be
changed, but there will be a remark stating the Policy was amended by the system as a result
of the 120% Rule. The minimum term/tenor considered here will be the one you have saved
during Policy creation which might not be same as the default Product tenor.
11.3.8
LEP – NAV Correction
When an NAV correction is made, the system reverses all relevant policy transactions and
generates new transactions. If the original transaction has been allocated, the new
transaction will also be allocated. This will be an EOD Batch Process.
11-5
You have the option of executing this process manually, through the ‘NAV Correction Policy
Transaction Reversal’ screen. You can invoke this screen by typing ‘UTDPLREV’ in the field
at the top right corner of the Application tool bar and clicking on the adjoining arrow button.
This helps when you want to allocate transactions that have undergone NAV correction, prior
to the EOD Batch Process.
Click ‘Execute’ button to execute the process online. Click ‘Submit’ button to submit a job for
the same.
Note
NAV Correction does not support the correction of an initial investment if the transaction
has been allotted or if any underlying policy transactions have been generated. NAV correction will also not support the reversal/correction of policy switch transactions if it is
across AMCs, provided there is no allocation lag..
11.3.9
LEP - Set Latest Rule for Product
When a new Product is setup, or after a Product has been amended, if the System Date is
equal to the Rule Effective Date of the Product, this BOD Batch Process will set the current
rule as the latest rule. The new rule will be considered for all the validation processes.
11.3.10 LEP - Set Latest Rule for Plan
When a new Plan/Policy is setup, or after a Plan/Policy has been amended, if the System
Date is equal to the Rule Effective Date of the Plan/Policy, this BOD Batch Process will set
the current rule as the latest rule. The new rule will be considered for all the validation
processes.
11.3.11 LEP - Plan Anniversary Value Computation
The system facilitates the revaluation of annuity payments on every Anniversary Date,
through this BOD process. It works along the following lines:
1. The process checks if the Application Date is an Anniversary Date.
11-6
2. If so, the anniversary revaluation is done for all ELLA policies, and the computed values
updated in the system.
3. The process then performs the 5/20 validation for the new anniversary values.
11.3.12 LEP - Plan Annuity Escalations
This process works in much the same way as the 5/20 validation process, but takes into
account any changes that are made to the annuity amount either by way of amendment or
escalation, in the Policy Maintenance screen. The 5/20 validation is also performed for this
BOD process.
11.3.13 LEP - Plan Recurring Switch Escalations
If recurring switch escalation details are specified for a Policy, this BOD Batch Process will
amend the policy rule and create a new rule with the new escalated recurring switch value on
the specified/calculated Escalation Date, for the specified funds.
11.3.14 LEP - Plan Premium Escalations
If premium escalation details are specified for a Policy, this EOD Batch Process will amend
the policy rule and create a new rule with the new escalated premium value on the specified/
calculated Escalation Date, for the specified funds.
11.3.15 LEP - Recurring Plan Annuity Processing
This BOD Batch Process generates periodic annuities for the Policies for which annuity is
applicable. This transaction is generated using the annuity setup corresponding to the latest
rule for the Policy.
11.3.16 LEP - Recurring Plan Switch Processing
This BOD Batch Process generates periodic recurring switch transactions for the Policies for
which recurring switch is applicable. This transaction is generated using the recurring switch
setup corresponding to the latest rule for the policy.
11.3.17 LEP - Recurring Plan Premium Processing
This BOD Batch Process generates periodic premium transactions for the Policies for which
premium is applicable. This transaction is generated using the premium setup corresponding
to the latest rule for the Policy.
11.3.18 LEP - Plan Funding Repayment
See Plan Funding Repayment. This will be a BOD Process.
11.3.19 LEP - Generate Plan Redemption Transactions for Periodic Fees
After the periodic fee has been calculated for a Product by the system, this BOD Batch
Process generates a redemption transaction in policyholder’s account for the calculated
Periodic Fees.
11.3.20 LEP - Process Plan Surrender
This process reduces the funded units in the underlying portfolio for a Policy, in the event of
a surrender transaction initiated by the policyholder. It functions as follows:

On the Application Date, this process identifies the surrender transactions that have
been effected at a policy level for funded endowment products, and checks for the
existence of funded units for these policies.
11-7

The funded units are then reduced in proportion to the surrender transaction.

The value of the reduced funded units is moved to the suspense bank account
maintained for the product, using the same policy transaction number corresponding to
the surrender transaction. The value is arrived at using the redemption price for each
fund.
11.3.20.1 LEP - Batch Process to trigger Automatic Surrender
The Batch Process to trigger Automatic Surrender is as follows:
1. The Batch process first checks the value of ‘Process Automatic Surrender’ at Product
level.
2. The system fetches the ‘Threshold Policy Market Value’, whether ‘Process Automatic
Surrender’ at Product level is correct.
3. The system identifies all the policies for which market values have gone below the
threshold amount.
4. The system then triggers an automatic surrender transaction with following parameters:
–
Asset allocation with all funds having balances and percentage applied as 100%.
–
Portfolio Surrender flag as True.
–
Payment mode as transfer.
–
Payment type as Product.
11.3.21 LEP - BOD Plan Transaction Generations
Same as LEP – Generate Plan Transactions, except, this is a BOD Process.
11.3.22 LEP – Cash Management Switch Process
This process ensures that the Cash Management Account has sufficient balance to meet all
the forthcoming annuity payments as well as the periodic fee redemptions. This can be run
either as part of EOD operations or be manually triggered.
It works as follows:

The system checks the ‘Cash Management Account Applicability’ and ‘Redeem
Periodic Fee from CMA Fund’ options maintained at the product level.

If both the parameters are applicable, the system
–
computes the Projected Periodic Fee for all the policies under such products
(Projected Periodic Fee is the sum of admin and broker periodic fee computed in
the last batch run for the policy)
–
computes Projected Annuity Payment for all policies where the Cash Management
Account fund forms a part of the annuity asset allocations
–
computes the Projected Outflow from CMA (Projected Outflow is the sum of
Projected Annuity Payment and Projected Periodic Fee)

The system then compares the Projected Outflow from CMA with the market value of
the Cash Management Account.

If the Projected Outflow from CMA is greater than the market value of the CMA, the
system switches funds (equal to the Switch Amount) to the Cash Management Account
from other policy funds. (Switch Amount is the difference between Projected Outflow
from CMA and the Cash Management Account Market Value).
The switch amount is generated proportionately from the available funds and directed into the
CMA fund.
11-8
12. Allocation Details
12.1 Allocation Details
12.1.1
Entering Allocation Details
The following are the steps you need to follow to enter and save Allocation Details. Each of
these steps is explained in detail in subsequent sections.
1. Invoke the Allocation Details screen.
2. Enter information in the Allocation Details screen.
3. Save the information entered.
12.1.2
Invoking Screen
You can invoke the ‘Allocation Details’ screen by typing ‘LEDPLALC’ in 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 Allocation Details.
12.1.3
Fields in Allocation Details Screen
Product ID
Mandatory
Select the product ID from the option list.
12-1
Policy Number
Mandatory
Select the Policy Number from the option list.
TXNTYPE
Mandatory
Select the transaction type from the option list.
Policy Txn Number
Mandatory
Select the policy transaction number from the option list.
Alloted?
Mandatory
If you want to allot allocation, select ‘Yes’. Else ‘No’.
Transaction Amount
Optional
This is amount applied for the transaction.
Gross Amount
Optional
Gross Amount is the amount inclusive of all fees.
Date of Allocation
Optional
Enter the date of allocation.
Net Investible Amount
Optional
Net Investible amount is the Gross amount of fees
Switch In Gross Amount
Optional
Switch in Gross Amount is the amount inclusive of all fees for Switch in Fund.
Fetch Allocation Details Section
Click ‘Fetch Allocation Details’ button to specify the Fund Transactions, Allocation Details and
Fee Details.
12-2
12.1.3.1 Specifying Fund Transactions
Fund Transactions Section
Transaction Number
Mandatory
Enter the transaction number.
Fund ID
Mandatory
Select the Fund ID from the option list.
To Fund ID
Specify the To Fund ID.
Amount
Enter the amount.
Date of Allocation
Specify the date of allocation.
Gross Amount in FBC
Enter the gross amount.
Net Amount in FBC
Enter the net amount.
Settlement Amt Txn Ccy
Display
The settlement amount is displayed.
12-3
12.1.3.2 Specifying Allocation Details
Allocation Details
Allotted Units
Specify the allotted units.
Confirmed Units
Enter the confirmed units.
Unit Price
Specify the Price.
Base Price
Mandatory
Specify the base price.
Allocation Price
Mandatory
Specify the allocation price.
Load Amount
Enter the load amount.
12-4
Unit Cost
Mandatory
Enter the unit cost.
Price Date
Mandatory
Specify the price date.
12.1.3.3 Specifying Fee Details
Load Details Section
Transaction Number
Mandatory
Enter the transaction number.
Fund ID
Mandatory
Enter the fund ID
Load ID
Mandatory
Select the ID of the load that must be applied for the selected product.
12-5
From Entity
Mandatory
Specify the entity that bears this load.
To Entity
Mandatory
Specify the entity that will be recipients of the load.
Load Amount
Mandatory
Enter the load amount.
Load Amount in Fee Currency
Mandatory
Enter the load amount in fee currency.
Note
If load is applied at product level, the policy transaction amount gets converted in terms of
product base currency, while computing the amount slabs. The transaction amount in
product base currency is calculated using the latest available exchange rate for the default
source.
If exchange rate is not available for the currency pair, the allocation fails.
12-6
13. Annexure
13.1 Introduction
This annexure explains certain procedures that apply to both, the LEP and UT modules.
References to the Agency Branch and Fund Manager User Manuals have been made. For
complete information on the procedures and processes that have been mentioned here, refer
to the manuals mentioned.
13.2 Fund Distribution Processing
The system tracks the dividends proceeds separately for Unit Trust (UT) Transactions and
Policies. The dividend on a Policy is always reinvested.
The dividend due for a policy investment will be reinvested with the Policy Transaction Type
‘80’. This is shown in the screen given below:
The dividend due for a UT investment will be reinvested with the Reference Type RE and
Reference Number ‘REINV’. This is shown in the screen given below:
13-1
14. Function ID Glossary
L
LEDCMSD ...........................8-1
LEDPLALC .........................12-1
LEDPLAN .............................3-1
LEDPLCES ..........................9-1
LEDPLJNL .........................10-1
LEDPLSTA ...........................7-1
LEDPLSUR ..........................6-2
LEDPLSWI ...........................5-1
LEDPLTOP ..........................4-1
LEDTXNEE ........................3-52
LESCMSD ............................8-3
LESPLAN ...........................3-48
LESPLCES ..........................9-4
LESPLJNL .........................10-5
LESPLSTA ...........................7-6
LESPLSUR ........................6-20
LESPLSWI .........................5-18
LESPLTOP ........................4-20
U
UTDINRMN ........................3-54
UTDPLREV ........................11-6
UTDUHDEL .........................2-2
UTSINRMN ........................3-55
14-1
LEP Transaction User Guide
September 2014
Oracle Financial Services Software Limited
Oracle Park
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Goregaon (East)
Mumbai, Maharashtra 400 063
India
Worldwide Inquiries:
Phone: +91 22 6718 3000
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