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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

2



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

3



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

4



LIC "7ERATES ALL "ER INDIA

5



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

6

http://www.licindia.com/

http://www.licindia.com/



#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

7



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!

8



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

9



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

10



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!

11



Chapter 2

RESEARCH

METHODOLOGY

"*5ECTIE "9 STUDY

12



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

13



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.

14



Sco#e of The Study

strong influence weak influence

Production Induce Trial

Demonstrate

Benefits

Word of mouth

communication

Post-production

marketing

15

Pre-production

marketing

Consumption

Create

awareness

Build Brand

Preference



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

16



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

17



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

18



CHAPTER #

ANALYSIS $INTERPRETATION

19



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%

20



!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!

21



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/

22



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!

23



;! 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!

24



:! 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!

25



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!

26



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!

27



.! 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!

28



! 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.

29



! 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

30



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

31



CHAPTER +

,inin-!. Concl(!ion. $

S(--e!tion!

9INDIN6S

32



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

33



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!

34



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!

35



'I'LOGRAPHY

36



*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

37

http://www.licofindia.com/

http://www.sebi.gov.in/

http://www.rbi.org.in/

http://www.licofindia.com/

http://www.sebi.gov.in/

http://www.rbi.org.in/



Anne/(re

38



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

39



;! 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

40



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

41



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

42



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

43

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