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CHAPTER 1
INTRODUCTION
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INSURANCE INDUSTRY
Introduction
Life Insurance in its modern form came to India from England in the year
11! "riental Life Insurance Com#any stated $y Euro#eans in Calcutta %as the first life
insurance com#any on Indian Soil! All the insurance com#anies esta$lished during that #eriod
%ere $rought u# %ith the #ur#ose of loo&ing after the needs of Euro#ean community and Indian
nati'es %ere not $eing insured $y these com#anies!
(o%e'er) later %ith the efforts of eminent #eo#le li&e *a$u +uttylal Seal) the foreign life
insurance com#anies started insuring Indian li'es! *ut Indian li'es %ere $eing treated as su$,standard li'es and hea'y e-tra #remiums %ere $eing changed on them!
*om$ay +utual Life Assurance Society heralded the $irth of first Indian life
insurance com#any in the year 1./) and co'ered Indian li'es at normal rates!
Starting as Indian enter#rise %ith highly #atriotic moti'es) insurance com#anies came tito
e-istence to carry the message of insurance and social security through insurance to 'arious
sectors of society! *harat Insurance Com#any 0123 %as also one of such com#anies ins#ired
$y natioalism! the S%adeshi mo'ement of 1/4,1/. ga'%e rise to more insurance com#anies!
The United India in +adras) National Indian and National Insurance in Calcutta and the
(industan Co,o#erati'e Insurance Com#any too& its $irth in one of the rooms of the 5orasan&o)
house of the great #oet Ra$indranath Tagore) in Calcutta! The Indian +ercantile) 6eneralAssurance and S%adeshi Life 0later *om$ay Life3 %ere some of the com#anies esta$lished
during the same #eriod! 7rior to 118! India had no legislation to regulate insurance $usiness!
In the year 118) the Life Insurance Com#anies Act) and the 7ro'ident 9und Act %ere #assed!
The Life Insurance Com#anies Act) 118 made it necessary that the #remium rate ta$les and
#eriodical 'aluations of com#anies should $e certified $y an actuary!
*ut the act discriminated $et%een foreign and Indian com#anies on many accounts) #utting the
Indian com#anies at a disad'antage!
The first t%o decades of the t%entieth century sa% lot of gro%th in insurance
$usiness! 9rom :: com#anies %ith total $usiness,in force as Rs! 88!:: crore) it rose to 1.2
com#anies %ith total $usiness,in,force as Rs! 8 crore in 1;! During the
mushrooming of insurance com#anies many financially unsound concerns %ere also floated
%hich failed misera$ly! The Insurance Act 1; %as the first legislation go'erning not only life
insurance $ut also non,life insurance to #ro'ide strict state control o'er insurance $usiness! The
demand for nationali<ation of life insurance industry %as made re#eatedly in the #ast $ut it
gathered momentum in 1:: %hen a $ill to amend the Life Insurance Act 1; %as introduced in
the Legislati'e Assem$ly! (o%e'er) it %as much later on the 1th of 5anuary) 142) that life
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insurance in India %as nationali<ed! A$out 14: Indian insurance com#anies) 12 non,Indian
com#anies and .4 #ro'ident %ere o#erating in India at the time of nationali<ation)
nationali<ation %as accom#lished in t%o stages= initially the management of the com#anies %as
ta&en o'er $y means of an "rdinance) and later) the o%nershi# too $y means of a com#rehensi'e
$ill! The 7arliament of India #assed the Life Insurance Cor#oration Act on the 1th of 5une 142)
and the Life Insurance Cor#oration of India %as created on 1st Se#tem$er) 142) %ith the
o$>ecti'e of s#reading life insurance much more %idely and in #articular to the rural areas %ith a
'ie% to reach all insura$le #ersons in the country) #ro'iding them ade?uate financial co'er at a
reasona$le cost!
LIC had 4 <onal offices) ;; di'isional offices and 818 $ranch offices) a#art from its cor#orate
office in the year 142! Since life insurance contracts are long term contracts and during the
currency of the #olicy it re?uires a 'ariety of ser'ices need %as felt in the later years to e-#and
the o#erations and #lace a $ranch office at each district head?uarter) re,organi<ation of LIC too&
#lace and large num$ers of ne% $ranch offices %ere o#ened! As a result of re,organi<ation
ser'icing functions %ere transferred to the $ranches) and $ranches %ere made accounting units!It %or&ed %onders %ith the #erformance of the cor#oration! It may $e seen that from a$out
8//!// crores of Ne% *usiness in 14. the cor#oration crossed 1///!// crores only in the year
12,./) and it too& another 1/ years for LIC to cross 8///!// crore mar& of ne% $usiness! *ut
%ith re,organi<ation ha##ening in the early eighties) $y 14,2 LIC had already crossed
.///!// crore Sum Assured on ne% #olicies!
Today LIC functions %ith 8/: fully com#uteri<ed $ranch offices) 1//
di'isional offices) . <onal offices and the cor#orate office! LIC@s ide Area Net%or& co'ers 1//
di'isional offices and connects all the $ranches through a +etro Area Net%or&! LIC has tied u#
%ith some *an&s and Ser'ice #ro'iders to offer on,lint #remium collection facility in selected
cities! LIC@s ECS and AT+ #remium #ayment facility is an addition to customer con'enience!A#art from on,line Bios&s and IRS)Info Centres ha'e $een commissioned at +um$ai)
Ahmeda$ad) *angalore) Chennai) (ydera$ad) Bol&ata) Ne% Delhi) 7une and many other cities!
ith a 'ision of #ro'iding easy access to its #olicyholders) LIC has launched its SATELLITE
SA+7ARB offices! The satellite offices are smaller) leaner and closer to the customer! The
digitali<ed records of the satellite offices %ill facilitate any%here ser'icing and many other
con'eniences in the future!
LIC continues to $e the dominant life insurer e'en in theli$erali<ed scenario of
Indian insurance and is mo'ing fast on a ne% gro%th tra>ectory sur#assing its o%n
#ast records! LIC has issued o'er one crore #olicies during the current year! It has
crossed the milestone of issuing 1)/1);8)44 ne% #olicies $y 14th "ct) 8//4) #osting a healthy
gro%th rate of 12!2. o'er the corres#onding #eriod of the #re'ious year!
9rom then to no%) LIC has crossed many milestones and has set un#recedented
#erformance records in 'arious as#ects of life insurance $usiness! The same moti'es %hich
ins#ired our forefathers to $ring insurance into e-istence in this country ins#ire us at LIC to ta&e
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this message of #rotection to light the lam#s of security in as many homes as #ossi$le and to hel#
the #eo#le in #ro'iding security to their families!
Some of the im#ortant milestones in the life insurance $usiness in India are
11 "riental Life Insurance Com#any) the first life insurance com#any on Indian
soil started functioning!
1./ *om$ay +utual Life Assurance Society) the first Indian life insurance com#any started its
$usiness!
118 The Indian Life Assurance Com#anies Act enacted as the first statute to
regulate the life insurance $usiness!
18 The Indian Insurance Com#anies Act enacted to ena$le the go'ernment to
collect statistical information a$out $oth life and non,life insurance $usinesses!
1; Earlier legislation consolidated and amended to $y the Insurance Act %ith the o$>ecti'e of
#rotecting the interests of the insuring #u$lic!
142 8:4 Indian and foreign insurers and #ro'ident societies are ta&en o'er $y thecentral go'ernment and nationali<ed! LIC formed $y an Act of 7arliament) 'i<! LIC Act) 142)
%ith a ca#ital contri$ution of Rs! 4 crore from the 6o'ernment of India! The 6eneral insurance
$usiness in India) on the other hand) can trace its roots to the Triton Insurance Com#any Ltd!) the
first general insurance com#any esta$lished in the year 14/ in Calcutta $y the *ritish!
Life insurance Cor#oration of India 0LIC3
The Life insurance Cor#oration %as esta$lished a$out :: years ago %ith a 'ie% to #ro'ide an
insurance co'er against 'arious ris&s in life! A monolith then) the cor#oration) en>oyed a
mono#oly status and $ecome synonymous %ith life insurance! Its main asset is its staff strength
of 1!8: la&hs em#loyed and 8)/: $ranches and o'er si-,la&hs agency force!
LIC has hundred di'isional offices and has esta$lished e-tensi'e training facility at all le'els! At
the a#e-) is the +anagement De'elo#ment Institute) se'en <onal
Training Centre and ;4 sales Training Centers! At the industry le'el) along %ith the
6o'ernment and the 6IC) it has hel#ed esta$lish the National Insurance Academy! It #resently
transacts indi'idual Life Insurance $usiness) grou# Insurance $usiness) social security schemes
and 7ensions) grants housing loans through its su$sidiary! And the mar&ets sa'ings and
In'estment #roducts through its mutual fund! It #ays off a$out Rs 2)/// crores annually to4!2
million #olicyholders
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LIC "7ERATES ALL "ER INDIA
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LIC
Insuranace in India
Life Insurance Cor#oration of India
Life Insurance Cor#oration of India
Ty#e 6o'ernment,o%ned cor#oration
9ounded September 1, 1956
(ead?uarters(ead?uarters in +um$ai) India 0arious other locations in India
and a$road3
Bey #eo#leT!S i>ayan) 0Chairman3D!B!+ehrotra)Thomas +athe% and A!
Dasgu#ta 0+anaging Directors3
Industry Life insurance
7roducts Indi'idual Life Insurance)6rou# Insurance and 7ension 7lans
Em#loyees 118)1:
7arent NIL
Su$sidiariesLIC (ousing 9inance Limited) LIC0Ne#al3Ltd) LIC0Lan&a3Ltd)
LIC0International3*SC0C3)*ehrain)
e$site http://www.licindia.com
The Life Insurance Cor#oration of India 0(indi भारतीय जीवन बीमा िनगम 3 0LIC3 is the largest lifeinsurance com#any in India and also the countryFs largest in'estor!= it is fully o%ned $y the
6o'ernment of India! It also funds close to 8:!2 of the Indian 6o'ernmentFs e-#enses! It %as
founded in 142!
(ead?uartered in +um$ai) %hich is considered the financial ca#ital of India) the Life Insurance
Cor#oration of India currently has <onal "ffices and 1/1 di'isional offices located in different
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#arts of India) at least 8/: $ranches located in different cities and to%ns of India along %ith
satellite "ffices attached to a$out some 4/ *ranches) and has a net%or& of around one million
and 8// thousand agents for soliciting life insurance $usiness from the #u$lic)
History
The "riental Life Insurance Com#any) the first cor#orate entity in India offering life insurance
co'erage) %as esta$lished in Calcutta in 11 $y *i#in *ehari Dasgu#ta and others! Euro#eans
in India %ere its #rimary target mar&et) and it charged Indians heftier #remiums! The *om$ay
+utual Life Assurance Society) formed in 1./) %as the first nati'e insurance #ro'ider! "ther
insurance com#anies esta$lished in the #re,inde#endence era included
*harat Insurance Com#any 0123
United India 01/23
National Indian 01/23
National Insurance 01/23
Co,o#erati'e Assurance 01/23
(industan Co,o#erati'es 01/.3
Indian +ercantile
6eneral Assurance
S%adeshi Life 0later *om$ay Life3
The first 14/ years %ere mar&ed mostly $y tur$ulent economic conditions! It %itnessed) IndiaFs
9irst ar of Inde#endence) ad'erse effects of the orld ar I and orld ar II on the
economy of India) and in $et%een them the #eriod of %orld %ide economic crises triggered $y
the 6reat de#ression! The first half of the 8/th century also sa% a heightened struggle for IndiaFs
inde#endence! The aggregate effect of these e'ents led to a high rate of $an&ru#tcies and
li?uidation of life insurance com#anies in India! This had ad'ersely affected the faith of thegeneral #u$lic in the utility of o$taining life co'er
The LI9E INSURANCE Act and the 7ro'ident 9und Act %ere #assed in 118) #ro'iding the first
regulatory mechanisms in the Life Insurance industry! The Indian Insurance Com#anies Act of
18 authori<ed the go'ernment to o$tain statistical information from com#anies o#erating in
$oth life and non,life insurance areas! The su$se?uent Insurance Act of 1; $rought stricter
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state control o'er an industry that had seen se'eral financially unsound 'entures fail! A $ill %as
also introduced in the Legislati'e Assem$ly in 1:: to nationali<e the insurance industry!
Nationalization
In 144) #arliamentarian 9ero<e 6andhi raised the matter of insurance fraud $y o%ners of #ri'ate
insurance com#anies! In the ensuing in'estigations) one of IndiaFs %ealthiest $usinessmen) Ram
Bishan Dalmia) o%ner of the Times of India ne%s#a#er) %as sent to #rison for t%o years!
E'entually) the 7arliament of India #assed the Life Insurance of India Act on 1956-6-19) and
the Life Insurance Cor#oration of India %as created on 1956-9-1) $y consolidating the life
insurance $usiness of 8:4 #ri'ate life insurers and other entities offering life insurance ser'ices!
Nationali<ation of the life insurance $usiness in India %as a result of the Industrial 7olicy
Resolution of 142) %hich had created a #olicy frame%or& for e-tending state control o'er at
least se'enteen sectors of the economy) including the life insurance! The com#any $egan
o#erations %ith 4 <onal offices) ;; di'isional offices and 818 $ranch offices!
!"rrent stat"s
"'er its e-istence of around 4/ years) Life Insurance Cor#oration of India) %hich commanded a
mono#oly of soliciting and selling life insurance in India) created huge sur#luses) and
contri$uted around . of IndiaFs 6D7 in 8//2!
The Cor#oration) %hich started its $usiness %ith around ;// offices) 4!2 million #olicies and a
cor#us of INR :4 million 0USG 1/ million3) has gro%n to 84/// ser'icing around 1/ million
#olicies and a cor#us of o'er INR ;!: trillion 0USG //// million3!
The organi<ation no% com#rises 8/: $ranches) 1// di'isional offices and <onal offices) and
em#loys o'er 1/)/8)1: agents!The cor#orate "ffice of LIC is in +um$ai! It also o#erates in 18
other countries) #rimarily to cater to the needs of Non Resident Indians!
ith the change in the IndiaFs economic #hiloso#hy from the early 1/s) and the su$se?uent
rela-ation of state control o'er se'eral sectors of the economy) the mono#olistic #osition of theLife Insurance Cor#oration of India %as diluted) and it has had to com#ete %ith a num$er of
other cor#orate entities) Indian as %ell as transnational Life Insurance $rands! (o%e'er) it still
manages to $e the largest #layer in the Indian mar&et) %ith the lionFs share of 44!The recent
Economic Times *rand E?uity Sur'ey rated LIC as the No! 1 Ser'ice *rand of the Country!
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In the financial year 8//2,/. Life Insurance Cor#oration of IndiaFs num$er of #olicy holders are
said to ha'e crossed a %ho##ing 8// million 0fourth in terms of #o#ulation of the countries of
the %orld3
S"bsidiaries
LIC o%ns the follo%ing su$sidiaries
• Life Insurance Cor#oration of India International This is a >oint 'enture
offshore com#any #romoted $y LIC %hich commenced o#erations in 5uly)
1 %ith the o$>ecti'es of offering USG denomimated #olicies to cater to
the insurance needs of NRIs and #ro'iding insurance ser'ices to holders of
LIC #olicies currently residing in the 6ulf! LIC International o#erates in all
6CC countries!
• LIC Ne#al A >oint 'enture com#any formed in 8//1 %ith the ishal 6rou#of Industries) Ne#al!
• LIC Lan&a A >oint 'enture com#any formed in 8//; %ith the *artleet 6rou#
of Com#anies) Sri Lan&a!
LIC (ousing 9inance Incor#orated in 1 5une 1) its main o$>ecti'e is to #ro'ide
long term finance forconstruction or #urchase of houses or a#artments! It has a
Du$ai office!
• LIC(9L Care (omes A %holly o%ned su$sidiary of LIC (ousing 9inance)it $uilds and o#erates HAssisted Community Li'ing CentresH for senior
citi<ens!
INTR"DUCTI"N T" CUST"+ER SATIS9ACTI"N
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Life insurance in India made its de$ut %ell o'er 1// years ago!In our country) %hich is one of
the most #o#ulated in the %orld) the #rominence of insurance is not as %idely understood) as it
ought to $e! hat follo%s is an attem#t to ac?uaint readers %ith some of the conce#ts of life
insurance) %ith s#ecial reference to LIC! It should) ho%e'er) $e clearly understood that the
follo%ing content is $y no means an e-hausti'e descri#tion of the terms and conditions of an LIC
#olicy or Its $enefits or #ri'ileges!
9or more details) #lease contact our $ranch or di'isional office! Any LIC Agent
%ill $e glad to hel# you choose the life insurance #lan to meet your needs and
render #olicy ser'icing!
Customer satisfied %ith LIC ser'ice $ecause the LIC totally concentrate customer
relations and it ma&es customers attract to%ards the LIC
LIC mo'es to%ards $etter customer relations
7lans to start a ne% #ortal for its #olicyholders
"ur Regional *ureau (ydera$ad Se#tem$er /.) 8//4
Life Insurance Cor#oration of India 0LIC3 is em$ar&ing on a num$er of customer relationshi#management initiati'es to retain its foothold in the mar&et) in the %a&e of #ri'ate #layers inchingtheir %ay u# in the life insurance sector! The Insurance $ehemoth is #lanning to tie,u# %ith a num$er of $an&s to ena$le a #aymentgate%ay %herein the #olicyholders can ma&e their #remium #ayments 'ia credit cards! LIC is #lanning to start a ne% #ortal for its #olicyholders %here a customer can log in) get detailson hisher #olicies) change the resident address %hen heshe shifts to a ne% #lace and e'en ta&e a #rintout of the income ta- certificate! The #ortal is li&ely to $e ready in a month@s time!
*esides) it has already started %or& on allotment of customer folio num$er to &no% eachcustomerFs holding! JThe allotment of customer folio num$er for all our holders %ill still ta&e a year@s time in this<one)K ( Nanda) regional manager) information technology) LIC 0south,central <one3) said! JThe electronic clearance system that %e ha'e launched at (ydera$ad) *angalore) i>aya%ada
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and isa&ha#atnam) has $een doing 'ery %ell! (ere the customer@s #remium is automaticallyde$ited from his account at the time of #ayment)K he added! Shortly) the <one %ill also see thelaunch of this system in +ysore) +angalore and (u$li! JThis month) %e %ill also $e setting u# fi'e satellite $ranches in the <one) %ith t%o $eing in
(ydera$ad and three in *angalore)K A B Sahoo) regional manager 0mar&eting3) LIC 0south,central <one3) said at a #ress conference organised on the occasion of the $eginning of the golden >u$ilee year for LIC! Regarding the recently launched *ima 6old #olicy) a money,$ac& #olicy %ith #remium #aymento#tions) the cor#oration #lans to sell 14 la&h #olicies this year in the south central <one %ith thenational figure $eing one crore! LIC also #lans to launch three,four #roducts this year %ith one of these $eing unit,lin&edinsurance #lan in "cto$er! As on August ;1) 8//4) the <one has issued 18):.).4 #olicies underne% $usiness!
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Chapter 2
RESEARCH
METHODOLOGY
"*5ECTIE "9 STUDY
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The main aim of underta&ing this study is to accom#lish the follo%ingo$>ecti'e
• Conducting a mar&et sur'ey and understanding the customer #erce#tion!
• Analy<ing the mar&et sur'ey and there$y finding out the in'estment #attern of the
customer!
• 7ro#er understanding and e'aluation of LIC
• Analysis customer a%areness a$out insurance #olicies!
• 7ro#er understanding and analysis of the #ers#ecti'e in'estor a$out this financial #roduct
!
• The main moti'e of my >o$ the training is to $rand $uilding of LIC of India and creating
a%areness sales) that is it@s an $rand $uilding sales orientated!
• The o$>ecti'e of the LIC is to create a%areness of the #olicies among the general #u$lic
and to &no% the #erce#tion of the general #u$lic regarding the insurance #olicies and tryto fulfill their re?uirement!
• Analy<ing the mar&et sur'ey and there$y finding out the in'estment #attern of the
customer!
RESEARC( +ET("D"L"6Y
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RESEARC( =, Is a #rocess selecting analysis inter#reting and summari<ing in a significant
manner for the #ur#ose of framing out necessary conclusion and findings of data #ercei'ed and
formulated for deri'ing out the meaningful information! To carry our research necessary
tele#honic calls needed to $e done) suita$le a##ointments %ere to $e fi-ed and therefore mar&et
sur'ey is to $e follo%ed!
To conduct the mar&et research first of all it is necessary to create a research
design! A research design is $asically a $lue #rint of ho% a research is to $e
conducted) it may include=
1! Choosing the a##roach
8! Determining the ty#es of data needed!
;! Locating the source of data!
:! Choosing a method of data.
TY7E "9 RESEARC(
*asically there are ; ty#es of a##roaches used during the any research
1! E-#loratory
8! Descri#ti'e
;! E-#erimental!
During this research Descri#ti'e and E-#loratory a##roach is ta&en into consideration $ecause
of the a'aila$ility of rele'ant information to descri$e the relationshi#s $et%een the mar&eting #ro$lem and the a'aila$le information.
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Sco#e of The Study
strong influence weak influence
Production Induce Trial
Demonstrate
Benefits
Word of mouth
communication
Post-production
marketing
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Pre-production
marketing
Consumption
Create
awareness
Build Brand
Preference
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SA+7LE SIME
1 ! Sam#ling unit The customers %ill $e stratified and segmented according to their age)
income) cultural $ac&ground) gender) education) etc.
8! Sam#ling si<e: A sur'ey %as conducted for t%o hundred res#ondents
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Data Collection Metho!"
To conduct the mar&et research the data is collected $y t%o sources!
7RI+ARY +ET("D
The #rimary sources of data refer to the first hand information 7rimary data is collected during
the sur'ey %ith the hel# of uestionnaires.
Analy<e the collected information
This in'ol'es con'erting ra% material in to useful information! It in'ol'es ta$ulation of data and
using statically measures on them for de'elo#ing fre?uency distri$ution and calculating the
a'erages and dis#ersions!
This #hase %ill mar& the culmination of the mar&eting research efforts! The re#ort %ith the
research finding is a formal %ritten document!
To achie'e our target %e ado#ted the follo%ing strategies
1! "ur com#any di'ided us in t%o grou#s consisting of 8 mem$ers each!
8! In a grou# %e ha'e gone to different #laces li&e go't!offices) +ar&ets) Cor#orats) Trusts)
N6"s !
SEC"NDARY DATA
Secondary data is one %hich already e-ists and is collected from the #u$lished sources!The
sources from %hich secondary data %as collected are
1! Ne%s#a#ers and +aga<ines li&e Economic Times) Insurance Times) and Insurance
7ost!Internt
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LI+ITATI"NS
Though the #resent study aimed to achie'e the a$o'e,mentioned o$>ecti'es in full earnest
and accuracy) it %as ham#ered due to certain limitations! Some of the limitations of this
study may $e summari<ed as follo%s
• 6etting accurate res#onses from the res#ondents due to their inherent #ro$lems %as
difficult! They %ere #artial) and refused to coo#erate!
• ery fe% #eo#le are interested in &no%ing a$out insurance #olicies!
• Locating the target res#ondents %as 'ery time consuming!
• Sam#le si<e %as limited due to the limited #eriod of 4/ days allocated for the sur'ey!
• The selection of res#ondents to co'er the 'arious strata of the society %as tedious and
time consuming!
• Time Consuming
Contacting each and e'ery customer utili<es most of the time!
• Lac& of Bno%ledge
ery fe% #eo#le ha'e &no%ledge a$out 7olicies %hich are ne%ly launched!
• Co,ordination
7oor feed $ac& from the customers
Lac& of information from the customers due to time constraints
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CHAPTER #
ANALYSIS $INTERPRETATION
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ANALYSIS INTER7RETATI"N
A*"UT T(E SUREY
Bno%ing the a%areness and #erce#tion of the customers is 'ery im#ortant in any industry! This
#ro'ides insight into the customer $eha'ior and his e-#ectation from the industry #layer! It
e-amines some interesting choices of the retail in'estor including the reasons $ehind in'esting in
unit lin&ed #lans and the ris& tolerance le'els of the in'estors! the in'estor &no%ledge a$out the
uli#s and %hat according to him are the $est #olicies is also analy<ed! This 5ai#ur city sur'ey
%as conducted to &no% the retail in'estor a%areness and #erce#tion a$out insyrance #olicies! It
is ho#ed that this sur'ey in 5ai#ur city %ould go a long %ay in $enefiting for LIC of India!
I! AN "ERIE
This section sho%s an sim#le o'er'ie% of res#ondents li&e their age )gender) income #rofile)
sa'ing ha$its and ?ualification
0a3 Age,#rofile
Ta$le No! sho%ing age #rofile of res#ondents
S. No Age No .ofrespondents
Percentage
1. 20-25 13 16%
2. 25-30 23 29%
3. 30-35 13 16%
4. 35-40 10 13%
5. 40-45 6 8%
6. 45-50 5 6%
7. 50-55 4 5%
8. 55-60 2 2%
9. 60 Aboe 4 5%
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!ota" 80 100%
1! According to you) %hich ha'e #layed a ma>or role in the field of life,
insurance com#aniesO
Insurance 7't! Em lo ees 6o't! Em lo ees *usiness +anLIC 1/ 1; 1/(D9C 4 ; 4ICICI ; ; :"thers 8 1 1
After analy<ing this data it is found that from the gi'en three res#ecti'e le'el of 7't!
6o't! and *usiness 1/ out of 8/ 0;/3) 1; out of 8/ 0;3 and 1/ out of 8/ 0;/3
are in fa'our of LIC) %hile 4 out of 8/ 0143) ; out of 8/ 03 and 4 out of 8/
023) 1 out of 8/ 0;/3 and I out of 8/ 0;/3 are in fa'our of other 7't!
Com#anies!
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2 ! hich insurance com#any has gained massi'e #u$lic su##ort in the current
fiscal yearO
Insurance 7't! Em lo ees 6o't! Em lo ees *usiness +an
LIC 18 1: 1/(D9C ; 8 4ICICI ; 8 :"thers 8 8 1
9rom the a$o'e ta$le) it is found that from the gi'en three sector 7ri'ate) 6o't! and *usiness 18
out of 8/ 0;23) 1: out of 8/ 0:83) 1/ out of 8/ 0;/3) are in the fa'our of LIC ; out of 8/
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03) 8 out of 8/ 023 and : out of 8/ 0183 are in fa'our of ICICI) %hereas only 8 out of 8/
023) 8 out of 8/ 023 1 and out of 8/ 0;3 fa'our others com#any!
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;! Do you thin& insurance #olicy is in the direction of #u$lic %elfareO
7't! Sector 6o't! Sector *usiness +anYes 1; 12 18
No . :
The a$o'e ta$le sho%s that from #ri'ate sector 1; out of 8/ 0;/3 agree and . out of 8/ 0813
disagree) from go't! sector 12 out of 8/ 0:3 thin& it right $ut : out of 8/ 0183 donFt thic& it so
and from $usiness man 18 out of 8/ 0;23 are in fa'our of the a$o'e statement $ut out of 8/
08:3 donFt fa'our it!
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:! Is retirement $ond or #ension #olicy launched $y the num$er of #ri'ate
7't! Sector 6o't! Sector *usiness +anYes 14 1 1;
No 4 8 .
It is o$'ious from the a$o'e ta$le that 14 out of 8/ 0:43) 1 out of 8/ 04:3 and 1; out of 8/
0;3 from the gi'en three thin& retirement $end or #ension #olicy a legitimate ste# in the
direction of secure old age $ut 4 out 8/ 0143) 8 out of 8/ 023 and . out 8/ 0813 donFt agree
%ith the o#inion of the ma>ority class!
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4 Do you thin& that ris& co'erage factor included in Insurance #olicy attracts
general #u$lic to%ards the #olicyO
7't! Sector 6o't! Sector *usiness +anYes 18 12 11
No :
9rom the a$o'e ta$le it is found that 18 out of 8/ 0;23 from 7ri'ate sector 12 out of 8/ 0:3!
9rom 6o't! sector and 11 out of 8/ 0;;3 thin&s ris& co'erage factor attracti'e $ut rest out of
8/ 08:3) : out of 8/ 0183 and out 8/ 08.3 from the a$o'e them sector donFt thin& it so
encouraging to%ards sa'ing trend %hereas ; out of 8/ 03) 8 out of 8/ 023 and : out of 8/
0183 donFt thin& it so!
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2! hat according to you) the term #lan that only co'ers ris& and doesnFt co'er
maturity $enefit on sur'i'al at the end of the term #ro'ides security co'er
o'er #olicy holders or a smart %ay of accumulati'e money from #olicyholdersO
7't! Sector 6o't! Sector *usiness +anSecurit Co'er 11 14 18Accumulati'e +one 4
It is o$'ious from the a$o'e data that 11 out of 8/ 0;;3) from the 7't! Sector) 14 out of 8/
0:43 from 6o't! sector and 18 out of 8/ 0;23 thin& term #lan as a security co'er $ut out of
8/ 08.3) 4 out of 8/ 0143 and out of 8/ 08:3 from the three res#ecti'e grou# thin& it as a
%ay of accumulating money insurance com#any!
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.! Do you thin& that the arri'al of so many #ri'ate com#anies in this field %ill
#ro'ide Lots of choices to #olicy holderO
P%t& Sector Go%t& Sector '(!ine!! Man Ye! 1) 1* 1) No + 2 +
9rom analy<ing the a$o'e data it is found that 12 out of 8/ 0:3 from 7't! Sector) 1 out of
8/ 04:3 from 6o't! sector and 12 out of 8/ 0:3 thin& that the arri'al of #ri'ate #layers
en'isage a lot of choice to #olicy holder! *ut : out of 8/ 0183) 8 out of 8/ 023 and : out
of 8/ 0183 donFt thin& it so!
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! Do you agree that customer,centricity and trans#arency are the $u<<%ords
for success in this e'ol'ing industryO
7't! Sector 6o't! Sector *usiness +anYes 1 8/ 1
No 8 , 1
9rom the a$o'e data) it is found the 1 out of 8/ 04:3 from 7't! Sector and 8/ out of 8/ 02/3
from 6o't! Sector 1 out of 8/ 04.3 from *usiness men agree %ith this statement %hereas only 8
out of 8/ 023 from 7't! Sector and 1 out of 8/ 0;3 from *usiness men do not agree %ith this
statement.
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! CUST"+ERS 7RECE7TI"N T"ARDS SERICES
LIC (D9C ICICI "T(RS4/ ;/ 8/ 1/
0
10
2030
40
50
60
70
80
90
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
East
West
North
LIC
56%HDFC
22%
ICICI
11%
OTHERS
11%
Sales
0 LIC IS (AE +"RE CUST"+ERS RAT(ER T(AN "T(ERS3
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1/! LIC 7"LICIES AND *ETTER 7LANS
LIC (D9C ICICI "T(RS42 88 11 11
LIC
56%
HDFC
22%
ICICI
11%
OTHERS
11%
Sales
LIC IS "NE "9 9IRST INSURANCE C"+7ANY (IC( 7R"IDE +"RESERICES
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CHAPTER +
,inin-!. Concl(!ion. $
S(--e!tion!
9INDIN6S
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1! A$out : of customers ha'e felt LIC is a good in'estment o#tion Then $an&) UTI and other
sources! They feel li&e this $ecause LIC ha'e 8, fold ad'antage) it is not only a good in'estment
o#tion $ut it also co'ers the good in'estment o#tion $ut a life secured o#tion!
8! LIC is secured in influencing the customers to #urchase it can $e found from the analysis that
ma>ority of customers that is a$out .#urchased life insurance #olicy on their one interest!
*eside 42 of customer@s hare a$out .4 &no%ledge of a 'arious #olicies offered $y LIC! This
is sim#ly remar&a$le if %e >ust consider if %e >ust consider num$er of #olicies as it is a$out
11crores alt all Indian le'el!
;! It can $e seen for the a$o'e analysis that the ser'icing facilities #ro'ided $y LIC has to $e
im#ro'ed further a$out 41 of the customer@s feel the ser'ices offered is 'ery good! *ut it is
nota$le that ;2 of the res#ondents feel the ser'ices #ro'ided are a'erage!
:! LIC is trans#arent in its o#erations as it is e'ident from the analysis that / of customer
&no%s that LIC in'ests its funds in #u$lic %elfare acti'ities and also .2 of the customers are
also a%are of the fact that LIC@s claim settlement ratio is highest in the %orld! It gi'es a clean
#icture of LIC@s mar&eting strategy!
4! Although LIC granting free insurance co'er in association %ith state and central go'ernment
%ea&er sections of the society! They analysis of in for that 4 of customers are not a%are
a$out this unmatcha$le social %elfare acti'ity %ide #u$licity is necessary in this regard!
2! In s#ite of 'arious achie'ements of the organi<ation it has not $een a$le to con'ince
customers that) com#utation is not re?uired in life insurance section!
C"NCLUSI"N
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After o'erhauling the all situation that $oosted a num$er of 7't! Com#anies associated %ith
multinational in the Insurance Sector to gi'e $efitting com#etition to the esta$lished $ehemoth
LIC in #u$lic sector) %e come at the conclusion that
1 There is 'ery tough com#etition among the #ri'ate insurance com#anies
on the le'el of ne% trend of ad'ertising to lull a ma>or #art of Customers!
8 LIC is not left $ehind in the #resent race of ad'ertisement!
; The entry of the 7't! 7layers in the Insurance Sector has e-#anded the
#roduct segment to meet the different le'el of the re?uirement of the
customers! It has $rought a$out greater choice to the customers!
: 7ri'ate insurers ha'e restricted reach to the customers!
4 LIC has 'ast mar&et and 'ery firm gri# on its traditional customers and
mono#oly of life insurance #roducts!
2 *an& assurance , that allo%s life insurers to le'erage on the ris& #roduct
through $an& net%or&) %as ado#ted $y #ri'ate #layers! *ut LIC %as also
not left $ehind as #ic&ing u# ma>ority sta&e in the cor#oration *an& and
large e?uity sta&e in the "riental *an& of Commerce!
.
1RDA is also #laying 'ery com#rehensi'e role $y regulating norms mandating to #ri'ate #layers
in this sector) that increases the confidence le'el of the customers to the #ri'ate #layers!
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SU66ESTI"NS
In the moderni<ed %ell ad'anced hi,tech a##roach to the customer e'ery #ossi$le facilities and
effort to $uild u# the confidence of the rising #olicy holders to%ards! Insurance com#anies) to
com#lete one another nothing is left to recommend! *ut some recommendations that are
intensely felt and highly re?uired for insures to sustain in the mar&et! These are as follo%s
a3 +ore and more trans#arency should $e ascertained $et%een insurers and
#olicy holders!
$3 7articularly) in the emerging $oom in the insurance com#any) e'ery insurance
com#any should $e customer centered) and %ell 'ersed in the handling of
#ro$lem and grie'ances of the #olicy holders!
c3 Each and E'ery #roduct launched $y the Insurance com#any should $e in
fa'our of increasing need of #olicy holders!
IRDA should $e more and more res#onsi$le to the insurance sector $y determining some
standard! It should $e mandatory to e'ery insurers to ma&e more and more res#onsi$le and
res#onsi'e to the #olicy holders so that com#rehensi'e understanding may $e de'elo#ed among
#olicy holders! It may $e $eneficial on $oth sides!
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*I*L"6RA7(Y
*oo&s
• 7hili# Botler) P+ar&eting management@ #rentice (all of India 7't! Ltd! Ne% Dehli!
• C! R! Bothari PResearch methodology@) 'ish%a #u$lication) Ne% Delhi!
• Sa-ena Ra>an P+ar&eting management@ Tata +cgra%,hill #u$licating Co! Ltd! Ne% Delhi!
• (! ! erma P+ar&eting of ser'ices@ 6lo$al $usiness #ress) Ne% Delhi!
5"URANLS
*usiness today maga<ine of 9e$ruary issue)8/11!
e$ Resources
www.lico#india.com
www.sebi.$o%.in
www.rbi.or$.in
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UESTI"NNAIRE
Age #rofile QQQQQQQ!
6ender QQQQQQQ!
Income #rofile QQQQQQQ!
Sa'ing ha$its QQQQQQQ!
ualification : QQQQQQQ!!
1! According to you) %hich ha'e #layed a ma>or role in the field of life,
insurance com#aniesO
o LIC
o (D9C
o ICICI
o "T(ERS
2! hich insurance com#anies ha'e $een successful to ma&e strong #u$lic $ase $y ad'ertisementO
o LIC
o (D9C
o ICICI
o "T(ERS
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;! hich insurance com#any has gained massi'e #u$lic su##ort in the
current fiscal yearO
o LIC
o (D9C
o ICICI
o "T(ERS
:! Do you thin& insurance #olicy is in the direction of #u$lic %elfareO
o YES
o N"
4! Is retirement $ond or #ension #olicy launched $y the num$er of #ri'ate
com#aniesO
o YES
o N"
2! Do you thin& that ris& co'erage factor included in Insurance #olicy attracts
general #u$lic to%ards the #olicyO
o YES
o N"
.! hat according to you) the term #lan that only co'ers ris& and doesnFt co'er
maturity $enefit on sur'i'al at the end of the term #ro'ides security co'er
o'er #olicy holders or a smart %ay of accumulati'e money from #olicy
holdersO
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o SECURITY C"ER
o ACCU+ULATIE +"NEY
! Do you agree that customer,centricity and trans#arency are the $u<<%ords for
success in this e'ol'ing industryO
o YES
o N"
! Are you satisfied %ith the #re deli'ery demonstration of the 7roduct gi'en
$y the LIC agentsO
Satisfied
Dissatisfied
1/! 7lease indicate %hen you %ould li&e to $e contracted for the
9ulfillment of your insurance needsO
Immediately
ith one month
ithin three months
Later
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11! ould you recommend Life Insurance 7roducts to any of your
9riendsRelati'esAc?uaintancesO
Yes
No
18! Are you recei'ing your #remium notices %ell in timeO
Yes
No
1;! During your 'isit of LIC *ranch office do you find the O
Atmos#here neat and clean
Ser'icing #rom#t courteous
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1:! Do you hold an LIC #olicy on %hich sur'i'al $enefit or maturity claim %as
7aid to youO
Yes
No
14! Are you satisfied %ith the o'erall #erformance of the LIC of IndiaO
Yes
No
12! Are you satisfied %ith the JAfter Sales Ser'ice J#ro'ided $y your Life
Insurance AgentsO
Yes
No
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