PROJECT REPORT

ON

CUSTOMERS PERCEPTION TOWARDS LIC

In Partial Fulfillment of Requirement for the Award of Degree of

Master of Business Administration

Submitted to : Submitted by:-

Mr. Ashok Kumar Ajay Hooda
Prof. MBA 10 Sem.
Roll No. : 863

Institute of Management Studies & Research

 DECLARATION

I Ajay Hooda declare that the Project Report entitled Consumer Perception Towards

LIC its competitive funds are submitted by me in the partial fulfillment of Master of Business

of Administration from VCE, Rohtak.

I further declare that all the information, facts & figures furnished in this project Report are

based on my intensive research findings.

Ajay Hooda
 ACKNOWLEDGEMENT

Project work is never the accomplishment of an individual. Rather, it is an

amalgamation of the efforts, ideas and co-operation of a number of entities.

The compilation and presentation of this pustule has bestowed me with an

opportunity to show my gratitude to those subservient to it.

I am highly indebted to my Lecturer Mr. Ashok Kumar who has been the

hallmark of this effort. His guidelines made me comprehend the enigmatical

portion of the subject and were the sole animating force that coerced me to

meliorate my efforts without the support and guidance the project report

would not have taken shape.

Ajay Hooda
 CONTENT

Introduction
Executive Summary
Corporate Profile
Statement of Objective
Review Of Literature
Customer Market Relation
Organization System of LIC
Research Methodology
Research Objective
Data Collection
Hypothesis
Nature of Data
Sampling
Data Analysis & Interpretation
Data collection.
Findings & Suggestions
Limitation of the project.
Conclusion
Bibliography
Questionnaire
 EXECUTIVE SUMMARY
Life insurance industry received sharper focus after independence and success

of the organization bench marked with the growth of other segment of the

financial services industry. In today scenario, there are various life insurance

companies public as well as private companies. Private players in life insurance

are ICICI Prudential, KOTAK, HDFC Standard Life Insurance but LIC of India is

the leading company in insurance sector. LIC of India is the biggest player in the

competitive environment customer has perfect awareness & acceptability about

its product range. Customers are fully satisfied with the performance of LIC and

services provided by LIC.

The main objectives of this project report are to study the customer perception

towards LIC, to study promotion strategies in the competitive scenario, to study

the role of information technology in LIC in providing services to its customers

and to study customer relationship management in LIC.

For preparing this report exploratory and descriptive research design is used.

There are two sources of data, primary and secondary. Primary data do not exist

in records and publications. Primary data is collected afresh for the specific

study. Secondary Data refers to those data which is gathered for some other

purpose and are already available in the firms internal record and also in

commercial, trade or government publications. Sample unit is the customer of

LIC in Panipat and sample size 100.

The main limitations of this project report are lack of time, and survey conducting

is time consuming job. Some times customers do not give right answers of

questions because everyone has very busy life and do not wants to spend more

time for this type of survey.

LIC has remarkable awareness and acceptability among the customer. Majority

of the customer believe that product range provided by LIC of India is good.

During the survey it is also find that LIC product equal to its competitors. Overall

analysis depicts that customers highly satisfied with the performance of LIC. In

this way it is clear that LIC is market leader in insurance industry. So for

maintaining this status LIC have to concern more on customer delight. Now-a-

days monopoly of LIC is no more. Competition is growing at a very fast rate so

the competitors can easily divert the customers on the basis of price. Thus LIC

should introduce some low priced products o increase its market share in the

market in the competitive scenario and to retain its existing customers. LIC is

required to emphasis on his customer satisfaction in the competitive scenario

and also required to upgrade the level of technology from time to time.

In spite all of these limitations it is clear from the analysis and interpretation that

LIC is the market leader in today scenario.

CORPORATE
PROFILE
INTRODUCTION
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 Babul 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 Tag ore, 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 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-organization

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-

organization 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, 100 divisional

offices, 7 zonal offices and the corporate office. LICs Wide Area Network covers

100 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 CORE VALUES, MISSION VISION AND
COMMITMENT
LIC CORE VALUES
LIC will always line and reflect the following core values

Integrity and transparency

Caring and courtesy

Initiative and innovation

LIC MISSION
"Explore and enhance the quality of life of people through financial

security by providing products and services of aspired attributes with

competitive returns, and by rendering resources for economic development."

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

and Pride of India."

LIC COMMITMENT

To The Community: It Will

Provide insurance cover and financial security to every insurable person.

Meets its insurance needs in consonance with the changing and economic

environment.
 Conduct all aspects of its business keeping in view its interest and national

priorities.

To its customers: It will

Provide them prompt, efficient and courteous services.

Act as trustees of their funds and invest the funds to their best advantages.

Conduct its business with utmost economy and on sound business principles.

Keep the customer informed.

To its workforce: It 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 heir full potential.

Take steps to develop professional skills to enable them to handle their

assignment more efficiently.

STATEMENT
OF
OBJECTIVES
STATEMENT OF OBJECTIVES
To study the customers perception towards LIC.

To study promotion strategies in the competitive scenario.

To study the role of information technology in LIC in providing services to its

customers.

To study customer relationship management in LIC.

 REVIEW OF
LITERATURE
CUSTOMER & MARKETING RELATION

Businesses today face several major challenges advances in technology and

telecommunication have bought all he countries together into one global

economy. At the same time many nations remain poor and the gap between poor

and the gap between rich and poor nations in growing companies must respond

to market place trends while taking responsibility for protecting the environment.

They must also focus on the customer if they are to achieve success and the

global market place.

Market is a social and managerial process by which individual and group obtain

what they need and want through creating, offering and exchanging products to

value with others. There is some current marketing thinking

A growing emphasis on quality, value and customer satisfaction.

A growing emphasis on relationship building and customer retention

Modern marketing something beyond developing a good product, pricing suitably

and making it available to the customer.

The company has to communicate with its present and potential customers. As in

marketing concept that the key to achieving organizational goals consists of

being more effective than competitions in integrating activities towards

determining & satisfying the needs & wants of the target market.

The key to customer retention is customer satisfaction. A highly satisfied

customer is:

Stays loyal longer

Buys more the company introduces new products and upgrades existing

products.

Talks favorably about the company and its products.

Pays less attention to competing brands and advertising and is less sensitive

to price

Offers products/services ideas to the company.

WHAT IS CUSTOMER?
A customer is the more important person ever in this office . in

person or by mail.

A customer is not dependent on us . we are dependent on

him.
 A customer is not an interruption of our workhe is the purpose of

it. We are not doing a favour by serving him .. he is doing us a

favour by giving us the opportunity to do so.

A customer is no someone to argue or match wits with. No body

ever won an argument with customer.

A customer is a person who brings us his wants. It is our job to

handle them profitably o him and to ourselves.

ORGANISATIONAL SYSTEM OF LIC

Life insurance cooperation of India took a number of initiatives as in the previous

years to ensure a greater degree of involvement of its officers and employees in

consonance with the fast-paced changes occurring in the insurance section. The

consultants, concrete steps were taken and an awareness programme covering

34% of the work force was undertaken across the country. A transformations

initiative is also underway for ensuring LICs leadership in deregulated scenario.

Life insurance Corporation of India has its own identity. There are

various offices under the Corporation. The structure of Corporation is as follows:

CENTRAL OFFICES

(AT MUMBAI)
 ZONAL OFFICES (7)

DIVISIONAL OFFICES (100)

BRANCHES OFFICES (2048)

CENTRAL OFFICES: Its main function is policy formulation and budget

control.

ZONAL OFFICES: Its main role is supervision over divisions and input control.
DIVISIONAL OFFICES: Its function is supervision over branches.

BRANCHES OFFICES: It is a profit and growth centre and responsible for

operations.

BUSINESS GOAL OF LIC

CUSTOMER SATISFACTION

EMPLOYEE MOTIVATION AND SATISFACTION

MARKET SHARE

RETURN ON ASSETS

ENSURE SENSE OF PRIDE TO ITS WORK FORCE

CONDUCT THE BUSINESS WITH UTMOST ECONOMY

PRODUCT RANGE
OF
LIC
PRODUCT RANGE OF LIC
There are various products of LIC so first o all we should know about all the

products like:

a) Endowment Plan

b) Whole Life Insurance Plan

c) Combination of (a) & (b)

d) Children Plan

e) Pension Plan

f) Group Insurance Plan

Endowment Plan: Under this plan, sum assured is payable on maturity or on

death.

Whole Life Insurance Plan: The plan is available with less premium and

assured is payable on death of life assured.

Combination of Endowment and Whole Life Insurance Plan

(Jeevan Anand): It is a with profit plan. It is a combination of Endowment and

Whole Life Insurance Plan. Under this plan sum assured with vested bonus is

payable on the survival of life assured at the end of premium paying term. Sum

assured is also payable to the nominee on death assured during the currency of

policy.

Children Plan: some Children Plans are also made available by LIC such as
Jeevan Balya, Komal Jeevan, Jeevan Kishore, Jeevan Sukanya.

Pension Plans: These plans are available for the annuities with payment of

lump sum premium. Such plans are Jeevan Dhara, Jeevan Suruksha Plan.

Group Insurance Plan: these plans are made available for employer-

employee, professionals, coop societies, weaker sections of society etc at

cheaper premium and without medical scheme.

SCHEMES OF LIC OFFERING TO THE CUSTOMER

JEEVAN ANURAG PLAN

LIC Jeevan Anurag is a with profits plan specifically designed to take care of the

educational needs of children. The plan can be taken by a parent on his or her

own life. Benefits under the plan are payable at prespecified durations

irrespective of whether the Life Assured survives to the end of the policy term or

dies during the term of the policy. In addition, this plan also provides for an

immediate payment of Basic Sum Assured amount on death of the Life assured

during the term of the policy.

KOMAL JEEVAN PLAN

This is a Children's Money Back Plan that provides financial protection against

death during the term of plan with periodic payments on survival at specified

durations. This plan can be purchased by any of the parent or grand parent for a

child aged 0 to 10 years

JEEVAN KISHORE PLAN

This is an Endowment Assurance Plan available for children of less than 12

years of age. The policy may be purchased by any of the parent/grand parent.

JEEVAN CHHAYA PLAN

Ideal for parents having less than a year old child. Makes provision for education/

marriage of the child. Extra benefit of waiver of premium in case of death of the

policy holder.

SERVICES OFFERED TO THE CUSTOMER BY LIC

Life insurance Corporation of India is a pioneer financial and service institute. In

the changing competitive scenario, LIC has enhanced the quality of services to

its customers.

SETTLEMENT OF CLAIMS

The settlement of claims is very important aspect of service to the policy holders.

Hence, the corporation had laid great emphasis on expeditious settlement of the

maturity as well as death claims. During the year 2003-04, the corporation settled

2, 15,819 claims for Rs. 365.25 Cr. The percentage of outstanding claims at the

end of the year is nil. The performance in claims settlement has been improving
consistently and today LIC has levels of claims settlement performance, which

can be compared with the best in the world.

CLAIM REVIEW COMMITTEE

The corporation settles a large number o death claims every year. The claim is

repudiated only in case of suppression of material facts. The number of death

claim repudiated is very small. Even in these cases, an opportunity is given to the

claimant to make a representation for consideration by claim review committee at

zonal office and central office of LIC. As a result of such review, depending on the

meets of individual case appropriate sanction is made.

In order to ensure more transparency and impartial review of the appeals thereby

ensuring greater satisfaction among the claimants policy holder and public. The

claims review committee is constituted with former high court/district court judges

as member thereof.

CUSTOMER RELATION MANAGEMENT

In order to provide individual attention to the policy holders and to monitor

continuously the quality of services delivery, the corporation has introduced the

CRM initiatives. As part of the initiatives, managers (CRM) at the divisional office

are positioned. At the branch level, the customer relations executives (CRE) and

customer relation group (CRG) have been constituted. The complete range of

services delivery is being routed through this machinery. They also manage the

enquiries and grievances received through call centres, helplines; letters etc.

standing committees on customer relation have been constituted divisional

centres to take decisions on service matters.

 RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. It is an

academic activity and as such the term should be used in technical sense.

According to Clifford woody, research comprises defining and redefining

the problems, formulating hypothesis, collecting, organizing and evaluating data,

making decision and reaching conclusion to determined whether they fit the

formulation hypothesis.

The purpose of Research is to discover answer to question through

application of scientific procedures. Research methodology is carried out

according to a designated series of steps which are refused to be taken in the

chronological order. These steps are as follows:

Objectives of the study

Data collection

Hypothesis

Nature of data

Sampling

Data analysis
OBJECTIVES OF THE STUDY
To study the customers perception towards LIC.

To study promotion strategies in the competitive scenario.

To study the role of information technology in LICI in providing services to its

customers.

To study customer relationship management in LIC.

Data collection
The days of monopoly has gone away from the business world. Now, new

insurance private players are coming up and they are laying a lot of stress on

their marketing activities. To maintain a respectable position in industry, it is really

hard to maintain their position. This difficult task can be easily done if any

organizations have the satisfied customers. This is because in todays

competitive world, customers have their own value system. It is therefore

necessary for the organization that they understand what are needs, wants and

expectations of their customer from them. In order to make the customer loyal to

the organization and its products, it is necessary that he is keep satisfied

constantly.

As in his dynamic world, customers satisfaction level is likely to

undergo frequent changes; it is imperative that companies keep track of them by

carrying out their study from time to time owing to their interests in customers.

LIC has been doing this kind of activities from time to time. On the basis o these

surveys, it can make its future strategies. The present study is an attempt in this

direction. The study is primarily aimed at examining customer satisfaction and

perception about various aspects of LIC in the competitive scenario. These

aspects include acceptability and awareness, product, pricing, promotion &

distribution customer services and customer complaints.

HYPOTHESIS
Within the above framework of objectives, the study seeks to examine and verify

important hypothesis.

Acceptability and awareness of LIC brand name is as compared to its

competitors.

LIC is ahead of its competitions in product range and pricing of product.

LIC is superior to its competitors in promotion and distribution of its customer.

LIC is ahead of its competitors in imparting services satisfaction to the

customer.

LIC is ahead of its competitors in handling the customers complaints

Nature of data
There are two types of data

Primary Data: Primary data do not exist in records and publications. The

researcher has to gathered primary data afresh for the specific study

undertaken by him. The Primary data gathered for a specific research project

at hand.

Secondary Data : It refers to those data where is gathered for some other

purpose and are already available in the firms internal record and also in

commercial, trade or government publications

The primary data can be collected by three methods.

Observations

Experiments

Survey

In this study, survey method for data collection is used

SAMPLING

Sampling Unit - Customers of LIC of Panipat in Haryana

Sample Size - 100

Research design - Exploratory & Descriptive

Data collection tools - Questionnaire

DATA ANALYSIS

Data analysis is the backbone of any research work as it helps to extract

meaningful information from the data collected before analyzing the data. It is

first edited, coded and tabulated. The analysis is basically aimed at giving

interference of association or difference between the various variables present in

the research. In his study, we are using the simple graphical method for analysis.
.

ANALYSIS
&
GRAPHICAL
PRESENTATION
ANALYSIS & INTERPRETATION

I have to analysis the customer satisfaction level of LIC customers. For this

study, I have prepared a questionnaire in which I have covered certain aspects to

see overall satisfaction. These aspects are acceptability & awareness, product,

price, promotion & distribution, customers services and customer complaints.

The information is gathered through the questionnaire have been organized in

the form of statistical tables. The raw data have been converted in to simple

percentage whenever necessary.

CUSTOMER PERCEPTION ABOUT LIC PERFOMANCE

An inquiry have made from the customers as to how they rate the performance of

the corporation in competitive scenario in terms of LIC acceptability &

awareness, product, price, promotion & distribution, customers services and

customer complaints. The response samples of the customers are organized in

tables given below. The responses were obtained in four point scale viz

excellent, good, acceptable, and poor.

POSITION IN COMPARISON TO COMPETITORS

The respondents were also asked o rate in comparisons to the other competitors

in terms of LICS acceptability & awareness, product, price, promotion &

distribution, customers services and customer complaints. The responses were

obtained at the three point scale viz. superior, equal and inferior.

Q: - What is motive behind life insurance?

Table 1

Customer view point No. of customer

Saving 65

Risk cover 25

Tax rebate 10

Total 100
Interpretation: From the above graph and table, it is clear that 65%

customers considered life insurance as source of saving, 25% customer as a

source of risk cover and only 10% customer as a source of tax rebate.

Q: - How do you rate LIC awareness and acceptability?

TABLE 2

Customer view point No. of customer

Excellent 60
Good 20
Acceptable 15
Poor 5
Total 100
Interpretation: From the above graph it is clear that most of the customers

have excellent awareness and acceptability. 20% and 15% customers lie in the

category of good and acceptable respectively. Only 5% customers have poor

awareness and acceptability.

Q: - How do you consider the awareness and acceptability of

LIC vis--vis of its competitors?

TABLE 3

Customer view point No. of customer

Superior 60
Equal 33
Inferior 7
Total 100
Interpretation: Most of the customers considered that LIC has superior

position in competitive scenario. 33% respondents considered that LIC has equal

position. Only 7% customer considered inferior position in respect of LIC

awareness and acceptability

Q: - How do you rate the product range of LIC?

TABLE 4

customer view point No. of customer

Excellent 4
Good 70
Acceptable 24
Poor100 2
Total 90 100
80
70
Excellent
60
Good
50
Acceptable
40
Poor
30
Total
20
10
0
No. of customer
Interpretation: From the above table it is clear that majority of customers view

falls in good range of product of LIC. Only 2% customers considered poor

product range of LIC.

Q: - How do you consider the product range of LIC vis--vis of

its competitors?

TABLE 5

customer view point No. of customer

Superior 40
Equal 60
Inferior
Total 100

Interpretation: From the above graph it is clear that 40% customer

considered superior position of LIC as compared to its competitors, 60%

customers considered LIC has equal position in terms of product range as

compared to its competitors.

Q:-How do you rate the pricing of LIC product?

Table 6

Customer view point No. of customer

Excellent
Good 56
Acceptable 44
Poor
Total 100

Interpretation: It is clear from the above table that 56% customer considered

that price of LIC product is good and 44% customers considered acceptable

price of LIC product.

Q: - How do you consider the pricing of LIC product vis--vis

of its competitors?
 Table 7

customer view point No. of customer

Superior 66
Equal 34
Inferior
Total 100

Interpretation: It is clear from the above graph that 66% customers

considered price of LIC product is superior and 34% customers considered equal

as compared to its competitors.

Q: - How do you rate the advertisement/ publicity followed by

LIC for its product?

Table 8
Customer view point No. of customer
Excellent 5
Good 50
Acceptable 45
Poor
Total 100

Interpretation: 50% customers considered that LIC follow good advertisement

and publicity strategies for its products. 45% customers considered that LIC has

acceptable publicity strategies for promotion purposes.

Q: - How do you consider the advertisement publicity followed

by LIC vis--vis of its competitors?

Table 9

customers view point No. of customer

Superior 20
Equal 40
Inferior 40
Total 100
Interpretation: 40% customers considered that LIC has equal position in

advertisements and publicity for their products as compared to its competitors.

40% customers considered inferior position as compared to is competitors. Only

20% customers considered superior position as compared to is competitors.

Q: - How do you rate services provided by LIC?

Table 10

Customer view point No. of customer

Excellent 25
Good 65
Acceptable 10
Poor
Total 100
Interpretation: This table depicts that majority of customers are highly

satisfied with the LIC servicing because 65% customers considered good range

of services provided by LIC.

Q: - How do you rate LIC in handling the complaints of its

customers?

Table 11

Customer view point No. of customer

Excellent 64
Good 24
Acceptable 10
Poor 2
Total 100
Interpretation: From the above table it is concluded that majority of the

respondents considered that LIC has excellent services for handling the

complaints of its customers.

Q: - How do you consider the level of technology adopted by

LIC?

Table 12

Customer view point No. of customer

Excellent 8
Good 80
Acceptable 12
Poor
Total 100
Interpretation: It is clear that LIC has good level of technology for providing

better services to their customers.

Q: - How do you consider the level of technology of LIC Vis-a-

Vis of its competitors?

Table 13

customer view point No. of customer

Superior 48
Equal 52
Inferior
Total 100
Interpretation: It is clear from the table that 52% customers considered equal

position in level of technology adopted by LIC as compared to its competitors.

48% customers considered superior position as compared to its competitors.

SWOT
 ANALYSIS

SWOT ANALYSIS OF LIC

While formulating the marketing objectives the overall evaluation of a

companys internal environmental factors i.e. strengths and weaknesses and

external environmental factors i.e. opportunities and threats should be carried

out. The overall evolution of companys strengths, weaknesses, opportunities and

threats is called swot analysis.

STRENGTHS

LIC has more than 2000 branches and a vast and dedicated network of sales

and afeuts exceeding 9 lacs the country even in rural areas

 LIC has more than 8 crores policy holders in its books. In a country of 20 to

30 crores middle class, thus represents significant market penetration.

More than 60 percent of life business from rural and semi-urban areas in a

testimony to LICS rural thrust in words and deeds.

Flow of premium income has resulted in a large reservoir of about Rs.

3, 22,000 crores in LIC Life Fund.

Accumulated enough strength in reliable mortality and claim experience.

LIC has a long and strong history of solvency, financial stability, and a fair and

honest administration which will go a long way in building up the brand image

in a competitive environment.

LIC has improved services through metro area network, interactive voice

response system, and Toll-Free Telephone call for policy holders to record

complaints at selected centers.

Strong goodwill earned in the market with almost 48 years of its existence.

Substantial R & D, technical know-how to cater fast services to its customer.

Strong capital and reserves base.

WEAKNESSES

Limited exploration of potential insurance market.

Excessive manpower/fat organization.

Long hierarchical organization structure and cadres.

Less market awareness about full product range of the corporation.

Lack of international expertise in insurance sector.

 Deficient product mix.

Continued underwriting losses.

Low customer confidence in the quality of services.

OPPORTUNITIES

Private players are likely to embark n client segmentation and product

differentiation strategies that should result in more innovative and flexible

products and services. Banks entering in insurance territory would add

another dimension of competition.

New competitive parameters would improve customer value and increase

peoples awareness of insurance.

Competition will develop a better understanding of customer requirements

leading to more customized products for market place.

Increasing financial strength of above middle class with disposable income.

There is rural prosperity by thanks to bountiful monsoon, green revaluation

etc.

THREATS

Entry of global experts: the global bigwigs entering in the insurance market

have expertise in the field and are in a position to drive the market through

their core competence in insurance.

Threats to market share: consequent upon entry of the experience

insurance giants, the market share secured by LIC will come under attack.

Simultaneously they will also snatch the share of potential market.

 Fear of market disorder: liberalization in insurance sector will cause market

disorder because of fierce competition and the domestic insurer will loose its

base.

Competition: Competition will bring pressure on profit margins and

underscore the need or better on claims, cost and management expenses.

 FINDINGS
&
CONCLUSION

FINDINGS & CONCLUSION

The present study was undertaken to analyze the customer satisfaction and

perception in competitive scenario of LIC of India. The analysis has been carried

out in terms of acceptability, awareness, product, pricing, promotion, distribution

channels, customers services, and handling of customer complaints by LIC.

The main findings and conclusion which have emerged as a result of experience

gained in course of this study accordingly are as follows.

AWARENESS AND ACCEPTABILITY

LIC has remarkable awareness and acceptability among the customer

whereas its competitors are far behind. Brand image of LIC is very strong. LIC

has a full hold on life insurance business in competitive scenario.

PRODUCT

Overall satisfaction is mainly based on product. Majority of the customer

believe that product range provided by LIC of India is good. During the survey

it is also finds that LIC product equal to its competitors.

PRICING

Price is one of the vital element which helps to examine the customer

satisfaction in competitive scenario. The price of LIC product is higher.

PROMOTION

Customer considered it as very important and ranks the

advertisement/publicity of LIC product range as good and considered it equal

to its competitors.

CUSTOMER SERVICES

Promptness in claim settling

Majority of the customer are highly satisfied with promptness in payment.

Level of technology
 Majority of respondents considered the level of technology adopted by LIC as

good and considered it superior to its competitors.

Overall Satisfaction

Majority of the customer are highly satisfied with the services provided by

LIC.

HANDLING OF COMPLAINTS

Majority of the customer ranked the handling of their complaints as good.

 SUGGESTIONS

SUGGESTIONS
In the light of main findings and the experience an attempt has been made to put

forward few important suggestions.

 LIC is clearly the market leader in the insurance industry due to its reliability,

better performance and better services. It is clear from the analysis that

customers are satisfied with services of LIC. LIC has to try to highly satisfy

their customers in the comparative scenario. Their satisfaction is to be

converted into loyalty. It would increase the customer retention because a

highly satisfied customer has very less number of chances to switch over o

the other brand as compared to unsatisfied customers. So LIC have to

concern more on customer delight.

Price of LIC products is high as compared to is competitors. He price plays a

major role in decision making. Now-a-days monopoly of LIC is no more.

Competition is growing at a very fast rate so the competitors can easily divert

the customers on the basis of price. Thus LIC should introduce some low

priced products o increase its market share in the market in the competitive

scenario and to retain its existing customers. Simultaneously, it should also

take care that LIC is not affected by anti-selection or adverse selection of

lives leading to higher mortality rate.

LIC has good awareness and acceptability among its customers. In order to

retain it, life insurance Corporation of India should stress more on the

awareness of full range of the products to the prospects so that the need

based insurance can be carried out. The advertisement and publicity of LIC is

comparatively less aggressive which should also to be improved particularly

in metro and urban city.

 Now-a-days, the information is the power; therefore the prospects/customers

should be made aware of full range of available products as well as details of

newly launched plans. In order to remain the real leader in the life insurance

market. LIC is required to emphasis on his customer satisfaction in the

competitive scenario and also required to upgrade the level of technology

from time to time. Since there is a potential in the insurance market, LIC

should mobile the saving from all for the future through innovative product

mix.
 LIMITATIONS

LIMITATIONS
 Lack of time is the main limitation in this project.

Lack of customers support in giving the right answers of questions because

every one has very busy life.

BIBLIOGRAPHY
 BIBLIOGRAPHY

REFERENCE BOOK

Research methodology - C. R. Kothari

INTERNET SOURCES

www.licindia.com

www.google.com

OTHER SOURCES

Manual of life insurance of Corporation

 QUESTIONNAIRE

QUESTIONNAIRE

1. Demographic Profile
Name
Age
Address
 Occupation
Qualification

2. What is motive behind life insurance?

Saving
Risk cover
Tax rebate

3. How do you rate LIC awareness and acceptability?

Excellent
Good
Acceptable
Poor

4. How do you consider the awareness and acceptability of LIC vis--vis of its
competitors?
Superior
Equal
inferior

5. How do you rate the product range of LIC?

Excellent
Good
Acceptable
Poor

6. How do you consider the product range of LIC vis--vis of its competitors?
Superior
Equal
Inferior

7. How do you rate the pricing of LIC product?

Excellent
Good
Acceptable
Poor
8. How do you consider the pricing of LIC product vis--vis of its competitors?
Superior
Equal
Inferior

9. How do you rate the advertisement/ publicity followed by LIC for its
product?
Excellent
 Good
Acceptable
Poor

10. How do you consider the advertisement publicity followed by LIC vis--vis of
its competitors?
Superior
Equal
Inferior

11. How do you rate services provided by LIC?

Very high
High
Normal
Low

12. How do you rate LIC in handling the complaints of its customers?
Excellent
Good
Acceptable
Poor

13. How do you consider the level of technology adopted by LIC?

Excellent
Good
Acceptable
Poor

14. How do you consider the level of technology of LIC vis--vis of its
competitors?
Superior
Equal
Inferior