A PROJECT ON:

PUBLIC RELATIONS OF

LIFE INSURANCE CORPORATION OF INDIA

SUBMITTED BY:

(SEMESTER V)

GUNJAN RASWANT

RICHA RAI

DEEPAK JUNEJA

RAJA DUTTA

GAURAV DALAKOTI

GROUP NO. F325

ISBE A FW 10-12

Name of college

IIPM

SUBMITTED TO:

PROF. RAKESH SURI

1

DECLARATION

WE (GROUP F325), OF IIPM

OF PROJECT SEM (SEMESTER V),

HEREBY DECLARE THAT,

WE HAVE COMPLETED OUR PROJECT ON

“PUBLIC RELATIONS OF LIFE INSURANCE CORPORATION OF INDIA”

IN THE ACADEMIC YEAR 2010 – 2012

THE INFORMATION SUBMITTED HEREIN IS

TRUE AND ORIGINAL TO BEST OF MY KNOWLEDGE.

———————— ————————

DATE OF SUBMISSION SIGNATURE OF

STUDENT

(name)

——————

PLACE

2

CERTIFICATE

I, PROF.RAKESH SURI, HEREBY CERTIFY THAT GROUP NO.(F325) OF IIPM

FROM PROJECT SEM (SEMESTER V) HAS COMPLETED THEIR PROJECT ON

“PUBLIC RELATIONS OF LIFE INSURANCE CORPORATION OF INDIA”

IN THE ACADEMIC YEAR 2010 – 2012.

THE INFORMATION SUBMITTED HEREIN IS TRUE AND ORIGINAL TO THE BEST OF MY KNOWLEDGE.

—————————— ——————— SIGNATURE OF PROJECT SIGNATURE OF GUIDE CO-CORDINATOR

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ACKNOWLEDGEMENT

One of the pleasant aspects of preparing a project is the opportunity to thank those

who have contributed to make the project completion possible.

I extremely thankful to Prof RAKESH SURI whose active interest in the project insights

helped us to formulate, redefine and implement our approach towards the project.

I am also thankful to all those seen and unseen hands & heads, which have been of

direct or indirect, help in the completion of this project.

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CONTENTS

Sr.no TopicsPage

No

1 BRIEF HISTORY ON INSURANCE 7

2Profile Of LIC

9

3PRODUCTS

11

4 HISTORY OF PUBLIC RELATION 17

5 THE NEED FOR PUBLIC RELATIONS 19

6 SCOPE OF PUBLIC RELATIONS 22

7OBJECTIVES OF PUBLIC RELATIONS IN LIC

30

8Publics Important to LIC

33

9CONSUMER RELATIONS IN LIC

36

5

10FINANCIAL RELATIONS IN LIC

42

11Corporate Policy Of LIC On Public Relations

45

12CORPORATE POLICY ON PUBLICITY

47

13Public Relations Activities At L.I.C.

50

BRIEF HISTORY ON INSURANCE

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The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage. 

The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management

7

of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organisation servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organisation happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8 zonal offices, 992 satallite offices and the Corporate office. LIC’s Wide Area Network covers 109 divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.

LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year.

Profile Of LIC

Life Insurance Corporation Of India was formed on 1st September 1956. It can be said

that with the formation of LIC, utilisation of peoples money invested in Life Insurance for

planned economic development took roots. One of the reasons/objective of Nationalisation

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of life insurance industry was channelising of its funds for the benefit of the community at

large.

VISION

"A trans-nationally competitive financial conglomerate of significance to societies

and Pride of India" -

MISSION

"Explore and enhance the quality of life of people through financial security by providing products and services of inspired attributes with competitive returns, and by rendering resources for economic development.”

LIC operates all over India. It has :-

-7 Zonal offices

-100 Divisional offices

-2048 Branch offices

-6,28,301 Agents

Objectives Of LIC:

1. Spread of Life Insurance widely an in particular to the rural areas an to the socially

an economically backward classes with a view to reaching all insurable persons in

the country and providing them adequate financial cover against death at reasonable

cost.

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2. Maximise mobilisation of people’s savings by making insurance-linked savings

adequately attractive.

3. Conduct business with utmost economy and with the full realisation that the money’s

belong to the policy holders.

4. Act as trustee’s of the insured public in their individual as well as collective

capacities.

5. Meet the various Life Insurance needs of the community that would arise in the

changing social and economics environment.

6. Involve all people working in the corporation to the best of their capability in

furthering the interest of the insured public by providing efficient service with

courtesy.

7. Bear in mind, in the investment of funds, the primary obligation to its policy holders,

whose money it holds in trust, without losing sight of the interest of the community as

a whole; the funds to be deployed to the best of advantage of the investors as well

as the community as a whole, keeping in view the national priorities and obligations

of attractive returns.

8. Promote amongst all employees and agents of the corporation, pride and job

satisfaction through discharge of their duties with dedication

PRODUCTS

1) INSURANCE PLAN

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As individuals it is inherent to differ. Each individual's insurance needs and requirements are different from that of the others. LIC's Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement.

 

Jeevan Arogya    

 

Bima Account 1    

Bima Account 2    

Endowment Plus     

Jeevan Anurag Komal Jeevan

CDA Endowment Vesting At 21  Marriage Endowment OrEducational Annuity PlanCDA Endowment Vesting At 18 

Jeevan Kishore Jeevan Chhaya

Child Career Plan Child Future Plan

Jeevan Ankur    

Jeevan Aadhar

Jeevan Vishwas

The Endowment Assurance Policy

The Endowment Assurance Policy-Limited Payment

Jeevan Mitra(Double Cover Endowment Plan)

Jeevan Mitra(Triple Cover Endowment Plan)

Jeevan Anand

New Janaraksha Plan

Jeevan Amrit

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Jeevan Vriddhi

Jeevan Vaibhav (Single Premium Endowment Assurance Plan)

   

Jeevan Shree-I

Jeevan Pramukh

The Money Back Policy-20 Years

The Money Back Policy-25 Years

Jeevan Surabhi-15 Years

Jeevan Surabhi-20 Years

Jeevan Surabhi-25 Years

Bima Bachat

 

Jeevan Bharati - I

The Whole Life Policy

The Whole Life Policy- Limited Payment

The Whole Life Policy- Single Premium

Jeevan Anand

Jeevan Tarang

Two Year Temporary Assurance Policy

The Convertible Term Assurance Policy

Anmol Jeevan-I

Amulya Jeevan-I

Jeevan Saathi

   

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2) PENSION PLAN

Pension Plans are Individual Plans that gaze into your future and foresee financial stability during your old age. These policies are most suited for senior citizens and those planning a secure future, so that you never give up on the best things in life.

3) UNIT PLANS

Unit plans are investment plans for those who realise the worth of hard-earned money. These plans help you see your savings yield rich benefits and help you save tax even if you don't have consistent income.

   

Endowment Plus 

4)SPECIAL PLANS

LIC’s Special Plans are not plans but opportunities that knock on your door once in a lifetime. These plans are a perfect blend of insurance, investment and a lifetime of happiness!

New Bima Gold Health Protection Plus

Bima Nivesh 2005

Jeevan Saral

 

 Jeevan Madhur

Jeevan Mangal

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5)GROUP SCHEME

Group Insurance Scheme is life insurance protection to groups of people. This scheme is ideal for employers, associations, societies etc. and allows you to enjoy group benefits at really low costs.

Group Term Insurance Schemes

Group Insurance Scheme in Lieu Of EDLI

Group Gratuity Scheme

Group Savings Linked Insurance Scheme

Group Leave Encashment Scheme

Group Mortgage Redemption Assurance Scheme

Group Critical Illness Rider

JanaShree Bima Yojana (JBY)

Shiksha Sahayog Yojana

Aam Admi Bima Yojana

6) WITHDRAWN PLANS

Jeevan Nischay Market Plus I

Wealth Plus Profit Plus

Jeevan Aastha Money Plus-I

Jeevan Varsha Child Fortune Plus

Fortune Plus Jeevan Saathi Plus

Health Plus Samridhi Plus

Pension Plus Jeevan Nidhi

New Jeevan Dhara-I New Jeevan Suraksha-I

OTHER PRODUCTS

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WHOLE LIFE SCHEMES ENDOWMENT SCHEMES

TERM ASSURANCE PLAN PERIODIC MONEY-BACK PLANS PLAN FOR HIGH-WORTH INDIVIDUALS & KEYMEN MEDICAL BENEFITS LINKED INSURANCE PLANS FOR THE BENEFIT OF HANDICAPPED PLANS TO COVER HOUSING LOANS JOINT LIFE PLAN PLANS FOR CHILDREN NEEDS

INVESTMENT PLANS

Group Insurance Scheme:

Group term Insurance Scheme

Group insurance scheme in lieu of EDLI

Group gratuity scheme

Group super annuation scheme

Group savings linked insurance scheme

Group leave encashment scheme

Voluntary retirement scheme

Social Security Scheme

Janshree Bima Yojana.

Swaranajyoti Gram Swarojgar Yojana.

Subsidary Companies Of LIC.

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LIC Mutual Fund And Jeevan Bima Sahayog Asset Management Company Ltd.

The Lic mutual fund was set up in june 1989 as separate trust by LIC of India with a view to providing accessibility of various investment media including the stock markets to all sections of investors, particularly the small investors in rural and semi-urban areas. For LIC Mutual Fund schemes, Jeevan Bima Sahayou Asset Management Company Ltd (JBS AMC) incorporated on 20th April 1994, acts as Investment Manager.

LIC Housing Finance Limited.

Incorporated on 19th June 1989 under the Companies Act 1956—main objective of the company is to providelong term finance for construction/ purchase of individual houses/flats. The Company has 6 Regionaloffices & 67 operating offices alongwith 100 Extension ?Counters & Camp offices, making it the housing finance institution with the widest marketing network in the country andis amongst the premier Housing Finance Companies in our country.

Life Insurance Corporation (International) E.C.

The company was established in 1989 at Bahrain with the following broad objectives:

1. To cater for the insurance needs of expatriate Indians in theGulf by issuing nsurance policies in US $.

2. To provide insurance services to the holders of Indian /Registered policies of LIC of India currently residing in Gulf.

3. To help Non-Resident Indian to have their “Own Home Back Home” through loans from LIC Housing Finance Limited.

HISTORY OF PUBLIC RELATION:-

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Public Relations as a term was first formally used by ‘Thomas Jefferson’ in the year

1807 ,while drafting his seventh address to the congress delegates when he scratched out

the words “State Of Thought” and wrote “Public Relations” instead. Informally Sir Walter

Raleigh used it even earlier during the Land Rehabiliation Movement , while persuading

people from different parts of America to settle in the rural parts of Virginia. This was the

first organized effort to win and mobilize public opinion. In India , the term of course gained

importance later through the Public Relations Society of India (PRSI) in 1958.

Meaning And Introduction:

Public Relations, commonly called as PR is an activity aimed at increasing common

& understanding between an organization or individual & one or more groups called

Publics”.

What Is Public?

Public is a group of similar ideas, an assortment of persons having the same

interests, problems, circumstances & goals. They vary in their forms & sizes they have a

multitude of wants & desires. Each group has its own likes & dislikes. Group can be

classified as:- Employees form a group/public, employers form another group, etc. Other

members of the public can be dealers, wholesalers, investors, etc. Each of these group is

a public & everyone tries to attract a district audience with its varied tools & techniques. A

public may also be made up of a no. of individual’s who are unorganized & hard to identify

but who for widely varied reasons have a common interest in the matter at issue.

Today, however, when modern means of common make vast number of people aware of

controversial issues & common interests, publics tend to be large & impersonal. These

publics involve people who are not known to each other & are widely distributed over the

country, or even among a number of countries. The members of such public rarely meet

each other face to face or have much direct communication. The impersonal but powerful

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publics are numerous in today’s high complex society.But finally the public is any group of

people who share common interest.

Relations:-

It is the outcome of mutual understanding derived from the process of sharing of common

interest where as relationship is the definite type of relation or interaction taking place

between two individuals, group or departments. To understand any relationship, therefore it

is necessary that one understands the wants of those involved.

The term PR is also applied to the profession responsible for handling such assignments.

Corporations, govt. agencies, politicians & entertainers are among these who use public

relations. Their publics vary from employees & shareholders to an entire community or

members of the news media. The communication between an organization & its public

ranges a simple news release to a sophisticated campaign featuring films, ad’s speeches

& television appearances. Such communication is aimed at gaining the goodwill of the

public. The basis of any effective PR campaign is public benefit. If an organization does

not serve the needs of public, the public will not support it. PR experts help an organization

learn what the public wants & then establish policies that reflect concern for public’s

interests.

PR generally is practiced through:-

Corporate PR dept:- In a corporate department, specialists handle corporate PR activities

for only that company.

1. PR Agencies:- In agencies specialists carry out PR activities for several companies

2. Public Information Departments:- Non-profit organizations like colleges and

Government agencies have public information departments that work to strengthen

the image of the organization.

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OBJECTIVES OF PUBLIC RELATIONS

The main objective of public relations is to establish good understanding by sharing a

common problem or interest with the public. By public we here mean both an internal public

and a public external to the organisation. Mutual understanding can be established only by

sharing a common interest, by communication and relations.

However, the following are the broad objectives of public relations:

1. To promote mutual understanding.

2. To avoid the risk involved in misunderstanding.

3. To win friends.

4. To influence people.

5. To change the behaviour and attitude of the public.

6. To enhance the patronage from the various sections.

7. To help in fund raising.

8. To persuade individuals, groups etc.

9. To connect misconceptions and clarify on criticism of its policies

and practices.

10. To promote goodwill.

11. To create and maintain the image or reputation about the company.

12. To forestall attack by the competitors or opponents.

13. To undertake a public relations education program.

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14. To help the public to love life and work for better or for worse

without conditions.

15. To improve internal staff relations.

16. To liaise, counsel and advise.

17. To provide information about the activities of the company to the

press and writers.

18. To prepare and supply the public with information about the

organisation like price, quality, export, employment, and other

special features.

19. To ascertain public opinion, conduct opinion research, and understand public

attitudes on the organisation, profession and practice.

20. To sponsor dealer and distributor relations schemes.

21. To undertake programmes like sales training courses for retailers, wholesalers.

22. To establish press relations, publicity articles preparation, press release,

photographs.

23. To communicate with the employees on their benefits, accident prevention

labour relations and collective bargaining.

24. To undertake a campaign of public education about an industry or profession

and its contribution to the public.

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Functions Of Public Relations

The functions that are to be performed by a public relations department may differ from

organisation to organisation depending upon the nature and activities of a particular

organisation. However, certain standard functions have emerged as common in most

balanced departments. They are discussed below:

1. Policy:

2. Publicity

3. Product Publicity :

4. Relations with Government

5. Community Relations:

6. Coordinating Activities.

7. Conveying and Interpretation.

8. Advisory Functions.

9. Instructing by doing.

10. Public Relations Education Programme.

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NEED FOR PUBLIC RELATIONS

The need for public relations is clearly explained n the points below –

1. Communication :

The means for communication have reached , technically ,almost a stage of perfection .It is

today financially possible for practically everybody –at least in the advanced nations- to

receive information. The level of education of a wide circle of the population is rising

rapidly and this ensures a steady increase in the capacity for receiving information which is

guaranteed by the ‘constitution.’ Adequate information is, therefore, theoretically possible

although it is by no means guaranteed in each individual case.

2. New Information Order:

Whether we are correctly informed is far more difficult to answer. Many books, many

discussions in academies in radio and television in India and abroad, and countless

lectures, not excluding those in ‘Information Society’ and ‘New Information Order’, as far as

we are aware, a correct reply is yet to be received. The only answer, according to the

philosopher Karl Jaspers given in 1963, is

“we in the Free World have the chance to share the responsibility and find

ways of receiving the best possible information.”

3. Information Load:

Also called message load or quantity, The sceptic will, of course, draw our attention to the

flood of information to which we are all exposed today. The proper reply to this is that this

flood is largely without direction and that it is incomplete or inaccurate. Information must be

prepared. Essential information must be separated from trivial matter, and the interest of

the receiver must be aroused in the right direction. In the organization that ignorance, the

22

inability to appreciate or organization , superficial knowledge is extremely likely to result in

dislikes, dissatisfaction and outright rejection with all their disastrous concequences. What

we require is a fair means of information which eliminates existing or awakened

suspicions, which builds up understanding, and creates confidence. This is what we call

Public Relations.

4. Mutuality and Understanding: Going by the definition of public relations, the mutuality

is based on interaction between consideration for public opinion, and the need of the

communicator or organization to inform or establish contact. Understanding is created by

providing insight into, and reporting on all essential matters. Confidence is cultivated by

bringing the aim of the organization into harmony with the public interest, thus winning and

maintaining goodwill among the general public. From all these facts, it is clear what the

purpose of this ‘Activity in, for, and with. The public' is : To act and not to react; to create an

atmosphere of confidence by an active information policy, the passive part of which

consists in answering queries ; to inform the public and exert influence towards the inside

as a form of corporate and social counter control to establish direct or indirect connections

with the public, to fulfill a kind of interpreters’s function towards the public and to control

communicative reaction.

PUBLIC RELATIONS TOOLS

AdvertisingAdvertising is publicity but not all publicity is advertising. It is the business of selling goods,

services and ideas by inducing people to want them. It is drawing attention of public by big

public announcement t o a commodity or service with the aim of selling it. Advertising may

also be defined as the purchase of space in the press, or time over the radio and television

to promote the sale of products or ideas, and to build up the corporate image of an

institution. Advertising is one of the forces of modernisation and cuts across

Ideologies. Any advertising campaign should contain in it the broad ingredent of public

interest. The specific categories of public interest advertising are:

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1. Corporate Advertising

It explains the continuing research, engineering and management efforts a company makes

to improve its products or services. It can be called the voice of management speaking not

only to customers, but also to investors, suppliers, distributors, employees -present and

potential – and leaders of public opinion.

2. Public Relations Advertising

It discusses the problems, policies, social philosophy, or economic goals of a company or

industry, illuminates some aspect of the Nation's scene; discusses the basic principles of its

enterprise, notably with respect to foreign collaboration for the reader to shed light on the

economy or the society in which he lives.

3. Public Service Advertising It is designed to promote voluntary individual actions to

solve national problems such as better roads, prevention of floods, better health care,

family planning and rehabilitation of the handicapped. Also encouraging cultural activities,

tourism, secularism, buying of Unit Trust Certificates, voting in national elections, reducing

prejudices, and other worthwhile causes.

PublicityPublicity is the technique of 'telling the story' of any organisation or cause. It is the umbrella

term which in its meaning covers all the techniques employed to get a story across to the

public. It is weapon of war, an instrument of sales, a tool of politics. Basically publicity is

news. It has to be news, that is, be of interest to be carried. Publicity includes advertising

because advertising, like publicity, tells the story. But in general usage, publicity is used to

describe those expressions where the medium is not paid for; whereas advertising consists

of paying for the medium to get the story told.

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Promotion

Promotion describes commercialisation of publicity, and publicity and advertising jointly,

usually on a grand and co-ordinated scale, to the end of selling a product or products.

Campaigns

Campaigns consist of concerted, single-purpose publicity programmes, usually on a more

or less elaborate scale, employing co-ordinated publicity through a variety of media, aimed

at a number of targets, but focused on specific objectives. A campaign objective may be

the election of a candidate, the promulgation of a political issue or cause, the reaching of a

sales goal, or the raising of a quota of funds.

Lobbying

Lobbying is a kind of tool generally used by a group of persons like members of legislatures

who conduct a campaign outside the legislative chamber, that is, at the lobby, to influence

members to vote according to the group's special interest; it is also used by shareholders of

business corporations during the Annual General Body Meetings to pass a 'resolution' or

elect a 'director' to the 'board' in the interests of a group of shareholders. In a basic sense,

lobbying entails the exertion of influence, smooth and measured pressure and any other

exercise of persuasion-cum- pressure. In essense, it means a group putting its point of

view forward in an attempt to win the other group's support.

Public Affairs

Public Affairs may be defined broadly as a significant and substantial concern and

involvement by individuals, business, labour, foundations, private institutions and

government with the social, economic and political forces that singly or through interaction

shape the environment within which the free enterprises exist.

25

Mediums of Public Relations

1) Letters

Letters which enable one person to reach another despite the limitations of time that can

cut down on personal visits and telephoning, are among the most ancient and perhaps still

the most important media of mass communications. It has been said that letters are the

only selling medium that, if taken away, would disrupt the entire modem business structure.

They are sent out with every kind of enclosure; pamphlets and leaflets, order blanks,

samples, pictures, return post cards, and many

others. The well-written letter has a major advantage over all other media it is directed

personally to an individual. If it designed to please and flatter him rather than to irritate him

as an invasion of his privacy, it commands his attention for a little while perhaps just long

enough to motivate him to do what the writer wants him to do. Mail is a personal thing. A

person likes to receive a letter written for him as well as addressed to him. He likes to

express regard for him ,offer him a better job, make a promise or enclose a cheque. When

a publicist sends out a letter written for the client's benefit rather than for the recipient's,

privacy is being presumed upon. The recipient may resent it. He may throw the letter away

without reading it, or read it only to turn against the writer. Individually written and

addressed letters have long constituted (he backbone of international communication.

Offset letters are being used in increasing volume to establish a direct speedy line of

communication

with specific publics- Letters are used on a regular or spot-news basis to reach employees,

dealers, alumni, or workers in a fund-raising or legislative campaign.

2) Telephone

A telephone call is more effective than a letter as a last minute reminder or an incitement

to action. The telephone is good fo getting a person to do something he should do although

he might prefer

not to such as attending a meeting. He can dodge a letter more easily than the personal

commitment of a personal conversation. But for a technical or monetary commitment both

parties will find it advisable to put it in writing to seal the telephone agreement. The secret

26

of success in a large-scale telephone campaign is to obtain reliable telephone operators -

people with pleasing telephone

personalities and the persistence to keep after each number until they actually reach the

proper party and drive the message home. The maximum effect is obtained in a telephone

drive when every prospect is reached over the phone by a personal acquaintance. The

telephone being an instrument of human contact, courtesy and tact in its use are important

in winning the understanding and goodwill of the person on the receiving end. The

telephone personality of an organization and its employees is a vital aspect of its relations

with the entire community, with many different publics, and with every individual connected

by phone. A glaring telephone discourtesy is to have a secretary put through a

call and then hold up the party being telephoned because the caller has become tied up

with something else. It is better for people in business to make their own calls. People in

business can win goodwill by answering their own tele- phones if possible, it is not pleasant

telephone manners to have a secretary ask every caller 'Who's this? 'Who are you with?

and What's the call about?

3)Word of Mouth

Word of mouth spreads like wild fire. If the subject and content are right, it can burst into

spontaneous combustion just as an entire forest may suddenly be overrun by conflagration.

Through word of mouth, rumour and innuendo may spread with extreme speed and

spontaneity if the subject is close to the emotion of people. Feeling and thought must

quickly take wing on word of mouth. In stimulating a word-of-mouth campaign the important

thing is to present subject matter of such interest as to cause people to repeat it to others.

Word of mouth is perhaps the most subtle of publicity tools. It takes the form of gossip and

slander at times if timely action is not taken to

control it. Though it is the hardest to control, all our efforts need to be made. Its

manipulation is not subject to cut-and dried mechanics, as is the case with so many

publicity media and instruments. The things that contribute to word-of-mouth circulation are:

1. A spectacular and successful event or product.

2. A spectacular publicity or activising campaign.

3. A good catchword or slogan.

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4. Capitalising on a mass trend or catchword.

4)Newsletter

The commercial field has long made good use of newsletters. These have a bright future.

Newsletters tend to fit the times these days. People have fragmented interests. There are

certain things they want to know a lot about, and other things they don't want to hear

anything about. Newsletters have the advantage of speed. They are quick to read. The

public relations use of newsletters is spreading rapidly into non- profit fields as well.

Associations and professional societies particularly find the formal effective. Its use in

politics and lobbying is burgeoning.

With this format, users can reach constituents quickly on matters having both urgency and

importance. The person-to-person nature invites reading.

5) Post Cards

Post cards are quick and easy to prepare, quick and easy for the recipient to absorb,

economical to mail to constituents and an effectiveadaptation of direct mail to reach large

numbers of people with a message that can be punched home in a paragraph. In many

campaigns, a large number of individuals can be stimulated to sign and then send post

cards to their own friends and contacts. This

personal touch has more influence with the recipient than would a communique from a

stranger.

6) Public Address System

Public address systems at meetings, shows, gathering of employeesor mass audiences of

any kind make it possible mechanically to project he human voice before a large number of

people.

Mounted on a mini truck or other mobile auto, the public address system can be

transported from place to place, presenting speakers and programmes as it goes, and

reaching a widely distributed audience. Sound tracks can also be rigged up at programmes

in lieu of a permanently

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installed public address system. A portable bullhorn affords great mobility wherever

amplified sound is needed. A recording makes it possible to 'capture' a speech or radio

programme and replay it by radio before an audience or over a public address system

anywhere. Some recordings are made on the spot at special events. In other instances,

special programmes are deliberately produced at are cording studio.

7) Charts

Charts are by far the most-used visual aid. A chart may be painted, printed or drawn. It

must be large enough and simple enough to be seen and comprehended in the

presentation setting.

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OBJECTIVES OF PUBLIC RELATIONS IN LIC

The objectives of undertaking PR activities in LIC are manifold. In their

Citizen’s Charter the company states that:

TO THE COMMUNITY : We will Conduct all aspects of our business keeping

in view the interests of the community and the national priorities; Provide

insurance cover and financial security to every insurable segment including

the socially and economically weaker sections of the society.

TO OUR CUSTOMERS: We will provide them prompt, efficient and courteous

service; act as trustees of their funds and invest them to their best advantage;

build and maintain enduring relationship; keep them informed about our

products and services etc.

TO OUR WORKFORCE: We will promote a sense of participation and make

them partners in progress; work towards ensuring their job satisfaction and

sense of pride; provide an environment and the opportunities for growth to

enable them to realize their full potential; take steps to develop professional

skills to enable them to handle their assignments more efficiently.

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Organization and Staffing of the Public Relations Department

LIC is purely a service-oriented organization. Moreover for transacting with

their customers and business associates the company needs to develop and

maintain cordial relations with various sections of the society and various

other agencies i.e. their publics. This makes the role of PR in LIC even more

important and vital.

The company has a huge and active Public Relations Department which looks

after the publicity of the various services offered, maintaining cordial relations

with the various publics, publishing of journals, etc. and other PR activities.

Budget:

The management allocates Rs. 2-3 crores (approx.) annually to the PR

Department. This amount is then further allocated to the various Zonal Offices

which prepare their individual budgets according to their requirements.

Staffing Of PR Department

The Director-PR operates from the central office and has under him a Chief

PRO. Each Zonal Office has a Zonal Manager-PR under whom is the

Regional Manager-PR. Further under him is the Assistant Secretary who

works with his Subordinate staff to fulfill the day-to-day activities of the PR

Department.

A PR plan is made at the beginning of each accounting year for which

the Chairman appoints a PR Planning Committee. This committee

comprises of the Director PR, Chief PRO, etc.

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Tasks and Activities under the purview of PR at LIC

Of the various activities undertaken by ‘Life Insurance Corporation’ some are

listed below:

Advertising

Though countywide advertising is done by the marketing department,

advertising locally in the various cities is handled by Zonal Offices. The

advertising strategy is very well planned and is largely aimed at image

building.

Organize press conferences

Press conferences are organized occasionally, generally when a new policy is

released or when the annual financial results are announced or if something of

significance has happened.

Issue Press Releases

Press Releases are issued both by the central office as well as the various

zonal offices.

Participate in public awareness programmes

LIC has time and again joined itself with various community development and

awareness programmes for the cause of rural development and infrastructure

development.

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Publics Important to LIC

INTERNAL PUBLICS

Employees

Employee’s families

Staff Unions

EXTERNAL PUBLICS

Customers i.e. policy holders

Prospective Customers

Government Agencies

Banks and Financial Institutions

Statutory Bodies e.g. IRDA (Insurance Regulatory and Development

Authority)

Social Organizations

Lawyers

Local Administration

Media

General Public

Auditors

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RELATIONSHIP WITH SIGNIFICANT PUBLICS

Significant internal publics of the organization are its

Employees

Employees’ families; and the

Staff unions.

EMPLOYEE RELATIONS

In most Indian organizations, or companies, communications with employees

have so far been given a back seat as compared to external communications.

This has not been the case with LIC. It has through time realized the

importance of its internal publics.

LIC shares a good rapport with its employees. There are various staff unions

to take care of the employees rights. The company shares a cordial and

harmonious relationship with these unions.

The company’s focus, as regards its employees, is on providing:

A healthy working environment;

Employee friendly HRD policy;

Job security;

Training of Human resources;

Fully utilizing its people’s talents and capabilities to promote skills and

competencies and broaden their perspective;

Handsome remuneration and perks.

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The company achieves the above objectives by a number of means.

I. HOUSE JOURNALS

The corporation has a corporate house magazine ‘YOGAKSHEMA’ which

chronicles corporate and organizational events and pronouncements.

The corporation also releases a quarterly newsletter ‘JANKALYAN’ which

serves the above mentioned purpose as well as acknowledging employee

achievements and produce merit lists of employee performance.

A news letter NILYAMDOT COM is also published by the corporation which is

developed by the children of the LIC employees and is exclusively for children.

II. INTERACTION

The corporation also conducts open houses, meetings, seminars, workshops.

This is done with the aim of facilitating two-way communication.

III. REWARDS

Prizes are awarded to top performers at staff meetings and conferences.

Rewards are given in the from of holiday, a family trip or some monetary gain.

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CONSUMER RELATIONS IN LIC

In consonance with the changes taking place in the insurance market, the

corporation has undergone a transformation, simultaneously requiring a

revamp in its image.Systematic and focused PR initiatives and widespread

publicity have resulted in markedly improved visibility. The corporation has

emerged with a much younger and sleeker image.

A conscious effort was made to bring about a transformation in the corporate

image. Through various campaigns, the corporation tried to depict the

organization as one oriented towards the younger generation. The corporation

advertising campaigns assisted the marketing strategies.

PR Activities for Consumer Relations

The business of insurance is purely service which cannot be seen or held.

Hence, the consumer relations activities of LIC concentrate on the customer

public and building relations with prospective customer.

The corporation has time and again made endeavors to reach out to the

consumers, interact with them and keep them satisfied.

The corporation tries to achieve its objective through a number of means

Oral Communication

Oral communication with the consumer public is the most effective means of

presenting facts and creating understanding of the organization’s policies and

practices.

Employee-Consumer Communication:

The harmonious relationship that LIC has, through the years , built and

maintained with its customers has only been possible due to its dedicated and

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committed team of Development Officers and scores of Insurance Agents

throughout the country.

Press Conferences

Press Conferences are organized to announce new appointments of top

executives, introduction of new schemes, etc. It is very important in today’s

world because Now – a – days people are being aware about the appointment

procedure of different companies and consumer are also getting educated day

by day because of which it becomes necessary for the companies to keep

press conferences.

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Audio-Visual Communication

Television and Radio broadcasts are a basic medium of consumer

communication. Now –a-days it gaining a lot of importance.

Television and Radio advertising

The corporation’s advertisements reached nearly 25 crore people through

over 50 campaigns. There were 79 hours of TV advertising and 408 hours of

Radio advertising.

Trans-slides

The Corporation has placed trans-slides at strategic places, like Railway

Stations and Airports, for maximum exposure to public at large.

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Printed Communication

At LIC printed communications are used in conjunction with oral

communication media.

Press Release

Press releases are frequently handed out to the media by the local PR

department on behalf of the company. These generally comprise of any

subject or issue concerning the company, containing information for policy

holders or any item of news value to the media and its readers.

Journals and Publications

The corporation takes out its annual working results and several other

publications from time to time to keep the public abreast of the happenings

and achievements at LIC.

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Financial Results

The annual financial report of the corporation is published in the National

dailies and is also circulated amongst the shareholders to keep them

informed. It also aims at attracting new investors.

Booklets, Brochures and Pamphlets

Booklets, Brochures and Pamphlets are generally taken out to inform its

internal and external public about its various new schemes and act as an

effective medium of print communication.

Posters and Hoardings

These tools are not only an advertising medium but also a very effective PR

tool. LIC uses posters and hoardings to get quick public notice. Posters and

hoardings are widely placed throughout the city at busy intersections like

subways, railway stations, roadsides, bus shelters, etc.

Other Amenities Provided by LIC

Website

The Corporation’s website www.licindia.com gives information about the

corporation’s products, services, subsidiaries and addresses of branches and

about premium payment through the internet. It also provides

Press releases

News sections

Online policy status

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Online Premium Payment

LIC has tied up with HDFC Bank, ICICI Bank, UTI Bank, Bank of Punjab,

Global Trust Bank, Corporation Bank, The Federal Bank Ltd., Citibank, and

service providers like Bill Junction.com, timesofmoney.com to offer the online

premium payment facility to its customers in select cities.

Information Kiosks

The corporation has installed online information kiosks at prominent places

across the country. This provides information about the Products, services

and policy status reports to the customers.

Customer Contact Programme

The purpose of such a campaign is ‘to strengthen the relationship with the

customers and to build bridges of understanding.

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FINANCIAL RELATIONS IN LIC

There are quite a few financial publics of LIC.

Government Agencies

Banks and Financial Institutions

Statutory Bodies e.g. IRDA (Insurance Regulatory and Development

Authority)

Auditors

To communicate with them and to keep them informed of the company’s

progress several activities are undertaken by the PR Dep’t.

The Annual General Meeting

The Annual Report

The annual report is released annually to inform all publics of the company’s

working results.

Chairman’s Statement

The chairman’s statement is a comprehensive guide to what the company is

and where it strives to be. It comprises of the corporation’s corporate vision,

philosophy and policies, management contributions, future plans and a host of

other such important aspects.

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COMMUNITY REALTIONS IN LIC

LIC regularly provides ‘Health vans’ to various organizations across the

country. The corporation also sponsors many sports events at the national

level. Numerous publicity projects with a social purpose are undertaken at the

zonal level.

Recently the North Zone (Delhi) associated itself with the ‘Perfect Health Mela’

to propagate the cause of good health.

AIM OF CORPORATE RELATIONS FULFILLED AT LIC

The aim of any organization is to create for itself:

A. CORPORATE IDENTITY

B. CORPORATE IMAGE

C. CORPORATE CITIZEN

A. CORPORATE IDENTITY

Image Communicators/ Identity Creators

Company Logo

The company’s logo has become synonymous with insurance and security in

India. It helps to identify the company easily.

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Sign-up Line

‘We Know India Better’ is the sign up line of LIC

Company Publications

The company has a host of publications that comprise of in-house

journals, external newsletters, annual reports, etc.

Citizens Charter

The company philosophy goes a long way in creation of harmonious

relations with its publics. The citizen’s charter is a comprehensive

statement of the company’s philosophy towards its publics.

B. CORPORATE IMAGE

The above listed image communicators have been very successful in creating

a corporate image of LIC in the minds of the people over the years since its

establishment.

C. CORPORATE CITIZEN

With all its PR initiatives and activities, since its establishment, LIC has proved

to be a successful corporate citizen.

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Corporate Policy Of LIC On Public Relations

Public Relations aims at building-up and maintaining sound, effective and productive

relations with the public so as to help the organisation to understand and interpret the

environment as also help the public and the society at large to appreciate the performance

and limitations of the organisation. Public Relations has the responsibility to build and

maintain two-way relations between the Public and the Organisation at all levels.

The Public in the case of LIC includes:

A. levels of employees and agents.

B. Customers.

C. Government: Central, State & Local bodies.

D. Media, Press, T.V., Radio & Agency-owners and correspondents and

E. Citizens at large.

A clearly laid down Public Relations Policy, therefore, is essential to set the goals, indicate

the strategies and give proper direction to all levels in the area of Public Relations.

Mission

Establish understanding and develop awareness of mutual aspirations of LIC and the

Public.

Goals

1. Promote within the Corporation greater awareness of the changing environment and

the need to align the corporate policy to the emerging situation.

2. Help fashioning, within the constraints, its policies, programmes, practices and

products to meet the expectations of the Public. Help the public to appreciate the

performance and the limitations of LIC.

3. Make PR occupy the front seat in the organizational set-up.

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Strategy

1. Develop excellent relations with the totality of the media-print, electronic and agency

owners and reporters by regular exchange of information with them.

2. Establish relations-and develop understanding with the Govt. - Central, State &

Local bodies through legislators and Govt. officials.

3. Develop full understanding with the workers-employees at all levels and agents on

organizational goals, policies, practices and programmes.

4. Develop an effective system of communication with the departments and operating

units on the environment and on implementation of policies.

5. Build an atmosphere of goodwill and understanding inside and outside the organization

leading .to better appreciation of the Corporation's policies and performance.

6. Help to evolve an effective machinery for quick and satisfactory redressal of grie-

vances of the public.

7. Help to develop an image of LIC as a responsive organization,

8. Devise methods for opening up channels of two-way communication with various

publics of the Corporation.

Action Plan

1. Keeping the objectives, philosophy and the strategies in view, drawing-up annual PR

plans by Branches, Divisions, Zones & Corporate Office.

2. Develop an effective system of periodical reviews of PR Plans at all levels - B.O.,

D.O., Z.O. and Corporate.

3. Develop streamlined methods of systematic dissemination of the information re-

levant to each of the publics.

4. Develop streamlined methods of receiving messages/feedbacks from the totality of

the publics.

5. Formation of PR Advisory Committees at D.O., Z.O. and C.O. Organize PR depart-

ments in the C.O., Z.O.s and D.O.s for realization of the goals, and develop a nucleus

in Branches also.

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6. Organize events like inauguration of new B.O., D.O., Z.O. or any arm of the Corporation

(diversification) etc. as public functions to project corporate image.

7. Actively participate in at least one important scheme in each of the States and in two or

three national level schemes to help improve the quality of social life and establish the

social relevance of LIC.

8. Develop a task-plan in respect of the above strategies.

CORPORATE POLICY ON PUBLICITY

Publicity is a method of mass communication used for product launch product promotion,

communicating pricing mix, consumer education, countering competition

etc. LIC's publicity should be impressive, attractive and in conformity with the national

advertising policy.

Mission

Publicity should be cost-efficient and of high quality and should bring about money's worth

through a system of integrated communication.

Goals

1. Promote the Corporation's products, the whole line of products, including the pricing mix.

2. Educate the customers to facilitate more efficient service and appreciation of Cor-

poration's limitations.

3. Meet the challenges of competition.

4. Promote the Organization, enhance the Corporate Image.

5. Make publicity occupy the front seat in the organizational set-up.

Strategy

1. Organizing Publicity Department in the C.O., Z.O. and D.O., for realisation of the

goals. Develop a nucleus in Branches also.

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2. Developing a system of co-ordinating the publicity programmes with marketing

agencies.

3. Developing a system of co-ordinating the publicity programmes with the emerging

competition.

4. Developing streamlined methods of receiving feedback to assess the effectiveness of

publicity campaigns.

Action Plan

1. Keeping the objectives, philosophy and the strategies in view, drawing-up annual PR

plans by Branches, Divisions, Zones & Corporate Office.

2. Develop an effective system of periodical reviews of PR Plans at all levels - B.O.,

D.O., Z.O. and Corporate.

3. Develop streamlined methods of systematic dissemination of the information re-

levant to each of the publics.

4. Develop streamlined methods of receiving messages/feedbacks from the totality of

the publics.

5. Formation of PR Advisory Committees at D.O., Z.O. and C.O. Organize PR depart-

ments in the C.O., Z.O.s and D.O.s for realization of the goals, and develop a nucleus

in Branches also.

6. Organize events like inauguration of new B.O., D.O., Z.O. or any arm of the Corporation

(diversification) etc. as public functions to project corporate image.

7. Actively participate in at least one important scheme in each of the States and in two or

three national level schemes to help improve the quality of social life and establish the

social relevance of LIC.

8. Develop a task-plan in respect of the above strategies.

CHIEF PUBLIC RELATION OFFICER

The Chief Public Relation Officer of LIC is Mr. M. V. Kulkarni. He heads the PR department.

The PRO is responsible for the overall functioning of the PR department. He has to monitor

the smooth functioning of the departments.

RESPONSIBILITIES OF CHIEF PUBLIC RELATION OFFICER :-

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1. PR represents whole organization.

2. Should know how to behave in a certain situation.

3. He is not a person, he is representative.

4. Should know how to create enthusiasm.

5. In crisis he has to give feedback as soon as possible.

OBJECTIVES AND FUNCTIONS OF CHIEF PUBLIC RELATION OFFICER:•

The PRO is directly answerable to the Chairman Shri. T.S. Vijayan.

• The PRO looks after all the activities of the departments all over India.

• Also he has to keep in close touch with the over-seas PR departments of LIC.

• All the policies implemented in India are informed to other PROs of the over-seas

branches of LIC.

• The PRO monitors the norms and values of all the branches.

• The new rules and regulations in India are informed to the PROs of the over-seas

branches.

• The PRO also holds regular workshops for the top management employees to motivate

them to lift the spirit of the work culture.

• The PRO also has to provide information about latest policies to the communication

department and ask them to public or air it through various mediums.

• Since a major share of workload of LIC is in the public sector, the PRO has to look after

social responsibility as well as maintaining the image of the company.

COMMUNICATION DEPARTMENT

The PRO of this Department is an external PR. He looks after:-

• Arranging press conferences, press releases and is in constant contact with the media.

• He is also responsible for monitoring the overseas communications.

• The Communication Department PRO has to make arrangements for the guests and their

overall honors. The conversations with the guests are directly done by the Communication

Department PRO.

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• The PRO from this department should always keep a close eye on the latest happenings

in the market. Any social issue at any area is a news to be worked out for him.

• He reports directly to the Chief PRO of the company.

• The Press conference usually includes the CEO of the company, the Chief PRO and the

Communication Dept. PRO.

• If the case is of crisis, then only is the Crisis management Dept PRO present for the Press

conference.

• Since LIC is closely related with the Public Sector, the Communication Dept. PRO has to

also be in a close contact with the government officials.

• He also has to motivate the employees in his department for constant progress in the

strategies for communication.

In short, the communication Department PRO ensures that there is no communication gap

between the company and the external concerned bodies. (recent press releases of LIC

issued by Communication Department PRO

enclosed)….

CRISIS MANAGEMENT DEPARTMENT

The PRO in this department is an internal one. From the overall history of LIC, it is seen

that the company has never been into any major crisis. This itself is one of the best

achievements. He is answerable to the Chief Public Relation Officer. The PRO from crisis

management, though is here to handle crisis, he has been assigned many other internal

responsibilities.

• Motivating the lower employees, sales executives and sales and marketing employees.

• Building up a smooth communication between the Blue Collar and the White Collar.

• Arranging small workshops for all the employees.

• He also has to know the issues going within the other departments so that these issues

are solved before they create crisis. The strategy used by the PR here for crisis

management is:-

“Wash the utensil before having food in it.”

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Thus all the employees right from the day of joining are kept in close contact with the Crisis

Management Dept. And regular workshops help to restrict cases like Corruption. With a

company so closely associated with the government, restricting such practices is very

difficult task.

PUBLICITY DEPARTMENT

The PRO of the publicity Department is an External PR. This department was formed due

to the fall of sales in the 1999. This fall was due to the emergence of the foreign insurance

companies and their advertising strategies. Initially, the ads shown by LIC always said “no

worry even after death”. All the ads portrayed death. The other insurance companies came

up with the idea that insurance is for happy life. Thus the sales of LIC went down as people

liked the idea of Life more than Death. Hence a separate publicity department was formed

which worked only for publicity strategies. Initially it was looked up by the Communication

Department. Today the publicity department PRO has to see to it that all the ads running

are creating effect. The PRO is the one who along with the Marketing department looks

after the strategies for publicity. He is also to carry out various campaigns. The very recent

campaign is known as “Zindagi Express”. The Zindagi Express is a term that has been

associated to the life of LIC. Just as humans celebrate their 50 years of life, even LIC is

celebrating its life. and when any person has done a lot in his life, he is capable of writing

an Autobiography. Thus Zindagi Express is an Autobiography by LIC. They had started this

unique campaign of auto biography from Delhi and will cover the entire nation and end up

in Delhi again. During this journey they explain what all LIC has done for publics and what

all it still intends to do.

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Public Relations Activities At L.I.C.

1)PRESS CONFERENCE

Press conference & interview are arranged periodically by all L.I.C. offices - ie , Central,

Zonal, Divisional and Branch offices at the time of launching any new scheme and toinform

about the policies , programmes and activities to the press so that it can be publicised.

2)LIC WEB SITE

LIC has its own web site Licindia.com which provides information about LIC and its

subsidiaries and the products offered by them .

3) USAGE OF INFORMATION TECHNOLOGY .

With a view to providing quick and accurate service its customers LIC has introduced on-

line service through front – end terminals in 1993 branches and soon all our customers will

be able to

benefit by this .

4)GREIVANCE REDRESSAL

LIC has established an elaborate Grievance Redressal Machinery in order to deal with

problems of customers . The grievance redressal cells are operative at all levels ie. Branch,

Divisional, Zonal and Corporate offices . Specially designated officers attend to

policyholder's complaints.

5)RALLY ORGANISATION

LIC has organised a massive rally to pay homage martyrs of Kargil to provide moral

support to the Indian army.

6)PR And Publicity Conferences

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PR And Publicity Conferences arranged at the central office in which the Chairman

emphasised the need to reposition the organisation the organisation in the emerging

cooperative scenario with the help of revised PR and publicity strategies because it

was found out by a survey that the level of customer satisfaction is not very

high.Claim review committees A claims review committee was being formed at the

corporate level with a retired Judge as one of the members and it handles grievancs arising

out of reudiation of claims etc. Similar committees are also constituted at Zonal level.

7)Press Releases

Press releases regarding important news are released from time to time so that people are

kept informed and they know about them.

8)Customer Meets

Periodical customer meets are organised at Divisional and Branch level to facilitate greater

interaction with policyholders.

9)Consumers Affair Committee

A high profile committee has been constituted by the Central office with eminent persons

from the consumers movement being its member to advice and guide LIC on maters

concerning consumer interests.

10)Exhibitions

LIC arranges its various schemes and exhibitions so that it can display its various schemes

and plans .

11)Citizens Charter

The corporation has adopted a Citizens Charter wherein commitments have been made to

its customers for higher standards in servicing.

12)Seminars

Seminars are also arranged by LIC so that they can display their policies and plans .

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13)Free Phone Call Facility To The Policy Holders

A unique facility of free phone call service is being provided to the policy holders of Mumbai

city to enable them to have easy access to grievance redressal officers over the phone.

14)Sponsorship

LIC sponsors man y events like chess tournaments table tennis tournaments for the

employees and also for the general public. It has also sponsored a health camp

organised by ‘Masoom’ – an organisation of understanding and fraternity.

16)Distribution Of Dairies And Calendars

LIC distributes dairies and calendars to its employees and also to the general public every

year.

17)Publicity Stalls

Publicity stalls are been put up by LIC at different fairs and melas to publicise the

corporation and its schemes and plans.

18)Public Functions

Inauguration of new offices helps in communication as well as in enhancing the image of

the corporation.

19)Advertisement In Newspaper And Magazine

Advertisement about LIC’s products, activities and policies is published in newspapers and

magazines.

20)House Magazine –Yogkshema

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Yogkshema is the house magazine of LIC. It provides information about the

corporation , its activities , policies an programs.

21)Advertisement At Railway Station and Airport

Posters and banners are set up at strategically important public places such as

Airports ,Railway stations ,Bus terminals ,shopping counters an at the reception counters of

the business premises. This enables the policy holders to access information about LIC &

its products etc.

22)Insurance Week

An insurance week was arranged by LIC through which people were exposed to various

insurance schemes of LIC.

23)Advertisement On Radio satellite channel

Advertisement about LIC are frequently been telecast on radio and satellite channel.

Advertisement At Kumbh Mela

LIC has also advertised about its products and the corporation even in Kumbh Mela.

24)Training Programmes

Training programmes are arranged by LIC for its employees so that they can be trained for

the purpose of public relation activities.

25)Meetings

Meetings of Development officers are arranged by LIC to train their employees for public

relation activities.

 

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