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LIC Life Insurance

Features: Life insurance corporation of India (LIC) is the biggest life insurance player in IndiaInsurance Industry.its strong brand backed by long experience and well established network hashelped it to remain on the peak. LIC offers a very vast and huhge range of diversified products

catering to needs of various sections of people in India. It offers individual solutions consideringtheir specific financial requirement and risk profiles. They have a whole list of traditional plans,ULIP`s , Policies for children`s future needs and various policies which an individual requires for financial planning like pension plans.They also offer special products designed for physicallydisabled people, for women and for rural areas.

Plan Min PremiumBonus

Declared?NAV Declared?

LoanAvailable?

Tax benefit?

Jeevan Anand 1500

Jeevan Mitra(Double Cover

Plan) 1600

Jeevan Mitra(Triple Cover

Plan) 1700

New JanarakshaPlan

1600

EndowmentAssurance - (R.P)

1200

Jeevan NidhiI - RP 3000

New JeevanSuraksha-I

2500

New JeevanDhara-I

2500

Jeevan Nidhi - SP 10000

Jeevan Anurag -RP

2000

MarriageEndowment Or

EducationalAnnuity Plan

1800

Children'sDeferred

EndowmentAssurance Plan 21

2000

Jeevan Anurag -SP

25000

Children'sDeferred

EndowmentAssurance Plan 18

1200

Komal Jeevan 1200

Child Career Plan 1000

Child Future Plan 1200

Jeevan Chhaya 2000

Jeevan Kishore 1000

Child Fortune PlusRP

10000

Jeevan Akshay VI 3000

Pension Plus 15000

Endowment Plus 20000

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1. Life Insurance Corporation of India A Case Study

2. Presented By Arti Kumari Debarati Sen Gupta Monalisa Ghosh

Maneet Kumar Mani Shankar Sonkushre Man Mohan Anand

M.S.Ramaiah Management Institute, Bangalore | MBA PRIST (A)

3. Abstract The case deals with the strategy reformation of LIC to

compete with new entrants in the field of insurance in India. Till year

2000, LIC was the only company providing insurance services to Indian

customer. After year 2000 many new companies enters into the field of

insurance such as ICICI Prudential and Max New York etc. To

compete with the new players LIC totally reformed its strategy to

maintain its market leader position in insurance sector of Indian

economy

4. Coverage of Area In Its new strategy to compete the new entrants ,

LIC focused majorly on following areas Training and development of

sales force Technological Edge Business Process Re -engineering

Promotional Strategy

5. Training and development of sales force Sales force locatesprospects, develop them into customers, and grow the business. Sales

personal serve as the companys personal link to the customer hence

training and development of sales force become an important aspect.

Various methods adopted by LIC in this regards are : Program they

recruit many more agents to increase their network. Agents were

given professional training mandatory under regulatory & Development

and authority rules A tie up was done with I IM to impart IT skills to the

sales force Laptops were sold to development officers at concession

price.

6. Technological Edge Technology plays a vital role in business. Over

the years businesses have become dependent on technology so much

so that if we were to take away that technology virtually all business

operations around the globe would come to a grinding halt. this case

LIC has used various technologies to improve the effectiveness of

business. LIC used WAN (wide Area Network) to interconnect its

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branches which facilitate the customers to pay their premium at any

branch. LIC used IVRS (Interactive Voice Responsive System) that

enables the customer to get their query resolved in real time and obtain

information on their policy.

7. Business Process Reengineering Business Process Reengineering

is a structured approach to define the current state of processes,

identifying gaps and opportunities, designing a future process that

meets the business needs and planning for implementation. In the

case, LIC has reengineered their service processes to clear the

outstanding claims. They improved their services in such a manner that

it takes less time to process the customer request. In this way theywere able to send a message to customer that LIC delivers its services

on its promise.

8. Promotional Strategy Promotion is defined as the coordination of all

seller-initiated efforts to set up channels of information and persuasion

in order to sell goods and services or promote an idea. Advertising is

defined as any paid form of non personal communication about any

product, organization, services or idea by an identified sponsor.

Objective of promotion and advertisement is create brand identity and

brand equity. A Brand is defined as a name, term, sign, sym bol or

design or a combination of them, intended to identify the goods or

services of one seller or group of sellers and to differentiate them from

those of competitors.

9. Promotional Strategy In the case LIC has taken help of advertising

agencies to promote the Brand LIC. They used creative slogans which

affects the customers mindset and able to attract their attention.

Those slogans helped LIC to make the customer emotionally attached

to services provided by them. They spend huge amount of money in

advertising and sales promotions to build their brand equity and

identity. To avoid the interference in communication to customer, they

reduced the number of ad agencies and worked with limited number of

those agencies so that the message reached to customer, doesnt lose

the main objective.

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10. Thank You