A

Project Report
ON
“STUDY OF CUSTOMER SATISFACTION IN LIFE
INSURANCE CORPORATION OF INDIA.”
FOR THE DEGREE
OF
BACHELOR OF BUSINESS ADMINISTRATION
IN
HEMCHAND YADAV UNIVERSITY, DURG (C.G)
SESSION 2016-2019

PROJECT GUIDE: SUBMITTED BY:

MRS. DURGA MISHRA MOHAMMED ABDUL FARDEEN AHAMED

(HOD MANAGEMENT DEPT.) B.B.A 6 SEMESTER

ROLL NO: 7406022019

RUNGTA COLLEGE OF SCIENCE AND TECHNOLOGY, GANPARA, DURG.

PREFACE

The field of insurance has taken a giant leap at the

threshold of twentieth century. Insurance have become an

integral part of life of man all over the globe. The proverb

‘Need is the mother of invention’ is proving equally

correct in case of insurance.

Insurance have already had a considerable impact on

many aspects of our society. This project on “life
Insurance corporation of India” deals with the automation
of various activities done in insurance like how the
insurance companies doing there business and what is the
feature of life insurance.
ACKNOWLEDGEMENT

I am hearty grateful to Dinesh Kumar Tripathi (Development

Officer). They have always been an invaluable source of
inspiration had work, sincerity and dedication.

It gives me immense pleasure in s ubmitting this project on

“Life Insurance Corporation of India” . I have developed this

project in partial fulfillment of B.B.A 6 t h Semester

from”RUNGTA COLLEGE OF SCIENCE A ND

TECNOLOGY, GANJPARA, DURG”

I would like to express my sincere ineptness to my Project

Guide Mrs. Durga Mishra for her constant guidance and
valuable support during the project work. Encouragement and
excellent guidance in the successful completion of the
project work.

And of course nothing could have come true without the

support of my faculty members for their constant
encouragement and useful tips throughout my project. I will
always grateful to them
 DECLARATION
I hereby declare that the Internship project entitled “STUDY
OF CUSTOMER SATISFACTION IN LIFE INSURANCE
CORPORATION OF INDI.” submitted by me as a partial fulfillment
for the award of Bachelor of Business Administration for the session
2018-2019 is original and genuine work carried out by me.

Date:
Place:
Mohammed Abdul Fardeen Ahamed
 CERTIFICATE
This to certify Mr. Mohammed Abdul Fardeen Ahamed student of
Bachelor of Business Administration Roll No-7406022019 Enrolment
No-DA/2017/22697 Batch 2016-2019 at Rungta College of Science &
Technology, Durg have under taken a project titled entitled “STUDY
OF CONSUMER SATISFACTION IN LIFE INSURANCE
CORPORATION OF INDIA” in partial fulfillment of 3
years full time BBA program of Rungta College of Science &
Technology. The internship project has been undertaken
under guidance of Mrs. Durga Mishra (HOD Management
Department) approved by Mrs. Durga Mishra (HOD
Management Department). This is also to ascertain that this
project has been prepared only for the award of Bachelor Of
Business Administration degree not been submitted for any other
purpose.

INTERNAL EXAMINER EXTERNAL EXAMINER

(Signature) (Signature)

APPROVED BY
Mrs. Durga Mishra
HOD Management
R.C.S.T Durg
CONTENTS

CH. NO. PARTICULARS

1 Introduction Of Topic

2 Company Profile

3 Introduction of Topic

4 Brief Overview of Other Insurance Industry

5 Research Methodology

6 Conclusion & Suggestions

7 Bibliography

8 Annexure
What is customer satisfaction?
Customer satisfaction refers to how satisfied customers
are with the products or services they receive from a particular agency.
The level of satisfaction is determined not only by the quality and type
of customer experience but also by the customer’s expectations.

A customer may be defined as someone who:

• has a direct relationship with, or is directly affected by your
agency and receives or relies on one or more of your agency’s services
or products. Customers in human services are commonly
referred to as service users, consumers or clients.

• An organization with a strong customer service culture

places the customer at the center of service design, planning and service
delivery. Customer centric organizations will:

 determine the customers expectations when they plan
 listen to the customer as they design
 focus on the delivery of customer service activities
Value customer feedback when they measure performance.

Why is it important?
There are a number of reasons why customer satisfaction is important in
Insurance Sector:

1. Meeting the needs of the customer is the underlying rationale for

the existence of community service organizations. Customers have
a right to quality services that deliver outcomes.
2. Organizations that strive beyond minimum standards and exceed
the expectations of their customers are likely to be leaders in their
sector
 3. Customers are recognized as key partners in shaping service
development and assessing quality of service delivery.

The process for measuring customer satisfaction and obtaining feedback

on organizational performance are valuable tools for quality and
continuous service improvement. Customer satisfaction, a sine buss
term, is a measure of how products and services supplied by a company
meet or surpass customer expectation. It is seen as a key performance
indicator within business and is part of the four of a Balanced Scorecard.

In a competitive marketplace where businesses compete for customers,

customer satisfaction is seen as a key differentiator and increasingly has
become a key element of business strategy.

There is a substantial body of empirical literature that establishes the

benefits of customer satisfaction for firms.

Organizations need to retain existing customers while targeting non-

customers. Measuring customer satisfaction provides an indication of
how successful the organization is at providing products and/or services
to the marketplace.

Customer satisfaction is an abstract concept and the actual manifestation

of the state of satisfaction will vary from person to person and
product/service to product/service. The state of satisfaction depends on a
number of both psychological and physical variables which correlate
with satisfaction behaviors such as return and recommend rate. The level
of satisfaction can also vary depending on other factors the customer,
such as other products against which the customer can compare the
organization's products.
Customer Satisfaction in 6 Steps in LIC

Marketing &
Communication

Customer Product &

Feedback & Services
Evaluation Delivery
Management

Consumer
Satisfaction
Employee Policies &
Involvement & Practices
Commitment

Eduction &
Training

\
COMPANY PROFILE
ABOUT THE ORGANIZATION

Life Insurance in its modern form came to India from England in the
year 1818. Oriental Life Insurance Company stated by Europeans in
Calcutta was the first life insurance company on Indian Soil. All the
insurance companies established during that period were brought up
with the purpose of looking after the needs of European community and
Indian natives were not being insured by these companies. However,
later with the efforts of eminent people like Babu Muttylal Seal, the
foreign life insurance companies started insuring Indian lives. But Indian
lives were being treated as sub-standard lives and heavy extra premiums
were being changed 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 tito
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 natioalism. the
Swadeshi movement of 1905-1907 gavwe rise to more insurance
companies. The United India in Madras, National Indian and National
Insurance in Calcutta and the Hindustan Co-operative Insurance
Company took its birth in one of the rooms of the Jorasanko, house of
the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile,
General Assurance and Swadeshi Life (later Bombay Life) were some of
the companies established during the same period. Prior to 1912. India
had no legislation to regulate insurance business. In the year 1912, the
Life Insurance Companies Act, and the Provident Fund Act were passed.
The Life Insurance Companies Act, 1912 made it necessary that the
premium rate tables and periodical valuations of companies should be
certified by an actuary. But the act discriminated between foreign and
Indian companies on many accounts, putting the Indian companies at a
disadvantage.
 The first two decades of the twentieth century saw lot of growth in
insurance business. From 44 companies with total business-in force as
Rs. 22.44 crore, it rose to 176 companies with total business-in-force as
Rs. 298 crore in 1938. During the mushrooming of insurance companies
many financially unsound concerns were also floated which failed
miserably. The Insurance Act 1938 was the first legislation governing
not only life insurance but also non-life insurance to provide strict state
control over insurance business. The demand for nationalization of life
insurance industry was made repeatedly in the past but it gathered
momentum in 1944 when a bill to amend the Life Insurance Act 1938
was introduced in the Legislative Assembly. However, it was much later
on the 19th of January, 1956, that life insurance in India was
nationalized. About 154 Indian insurance companies, 16 non-Indian
companies and 75 provident were operating in India at the time of
nationalization, nationalization was accomplished in two stages; initially
the management 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. LIC’s 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-lint premium collection facility
in selected cities. LIC’s ECS and ATM premium payment
facility is an addition to customer convenience. Apart from on-line
Kiosks and IVRS, Info Centres have been commissioned at Mumbai,
Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune
and many other cities. With a vision of providing easy access to its
policyholders, LIC has launched its SATELLITE SAMPARK offices.
The satellite offices are smaller, leaner and closer to the customer. The
digitalized records of the satellite offices will facilitate anywhere
servicing and many other conveniences in the future.
LIC continues to be the dominant life insurer even in theliberalized
scenario of Indian insurance and is moving fast on a new growth
trajectory surpassing its own past records. LIC has issued over one crore
policies during the current year. It has crossed the milestone of issuing
1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth
rate of 16.67% over the corresponding period of the previous year.
From then to now, LIC ha crossed many milestones and has set
unprecedented performance records in various aspects of life insurance
business. The same motives which inspired our forefathers to bring
insurance into existence in this country inspire us at LIC to take this
message of protection to light the lamps of security in as many homes as
possible and to help the people in providing security to their families.
Some of the important milestones in the life insurance business in India
are:
 1818: Oriental Life Insurance Company, the first life insurance
company on Indian soil started functioning.

 1870: Bombay Mutual Life Assurance Society, the first Indian

life insurance company started its business.

 1912: The Indian Life Assurance Companies Act enacted as

the first statute to regulate the life insurance business.

 1928: The Indian Insurance Companies Act enacted to enable

the government to collect statistical information about both life
and non-life insurance businesses.

 1938: Earlier legislation consolidated and amended to by the

Insurance Act with the objective of protecting the interests of
the insuring public.

 1956: 245 Indian and foreign insurers and provident societies

are taken over by the central government and nationalized.
LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 crore from the Government of
India.

The General insurance business in India, on the other hand, can trace its
roots to the Triton Insurance Company Ltd., the first general insurance
company established in the year 1850 in Calcutta by the British.
OBJECTIVES OF LIC
to the socially and economically backward classes with a view to
reaching all insurable persons in the country and providing them
adequate financial cover against death at a reasonable cost.

-
linked savings adequately attractive.

policyholders, whose money it holds in trust, without losing sight of the

interest of the community as a whole; the funds to be deployed to the
best advantage of the investors as well as the community as a whole,
keeping in view national priorities and obligations of attractive return.

nd with the full realization

that moneys belong to the policyholders.

capacities.

arise in the changing social and economic environment.

capability in furthering the interests of the insured public by providing

efficient service with courtesy.

of participation, pride and job towards achievement of corporate

objective.
MISSION/VISION
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.”

Vision

“A trans-nationally competitive financial conglomerate of

significance to societies and Pride of India.”
INTRODUCTION OF ABOUT
TOPIC

Claim Policy
Claims of policy argue that certain conditions should exist and
advocate adoption of policies or courses of action because
problems have arisen that call for a solution

Claim Policy & Instructions

In the unfortunate event of an arrival problem, Vanguard
has formulated a set of required guidelines to document
and present claims. Failure to follow these guidelines will
make the claim for buyer's risk. Please note Vanguard's
claim policy is for everything over five (5) percent buyer's
risk. Vanguard does not believe these guidelines to be in
anyway arbitrary or unfair. They are simply to enable us
to present substantial and consistent documentation to our
growers and suppliers, as well as to ensure Vanguard
complies with all
necessary regulations. Past experience shows that almost
all claims lack one or more of the requirements outlined
below. Our experience also shows that claims that are
substantiated with all of the requirements outlined below
stand a much better chance of being solved quickly and
fairly. Kindly fulfill all of these requirements when
reporting a claim:
OBJECTIVE AND
SUBJECTIVE CLAIMS
An objective claim is a statement about a factual matter-
one that can be proved true or false. For factual matters
there exist widely recognized criteria and methods to
determine whether a claim is true or false. A subjective
claim, on the other hand, is not a factual matter; it is an
expression of belief, opinion, or personal preference. A
subjective claim cannot be proved right or wrong by any
generally accepted criteria.
Objective claims & facts An objective claim may be true
or false; just because something is objective does not
mean it is true. The following are objective claims
because they concern factual matters, that is, matters that
can be verified as true or false:
Taipei 101 is the world's tallest building. Five plus four
equals ten. There are nine planets in our solar system.
Now, the first statement of fact is true (as of this writing);
the other two are false. It is possible to verify the height
of buildings and determine that Taipei 101 tops them all.
It is possible to devise an experiment to demonstrate that
five plus four does not equal ten or to use established
criteria to determine whether Pluto is a planet.
Facts previously considered true may come to be
considered false if new criteria, methods, or technology
emerge. For example, the definition of planet was
recently revised. Experts agreed that Pluto did not
conform to the new accepted criteria. At that point, the
statement, "There are nine planets in our solar system"
became false. Even if a factual statement is demonstrably
false, it remains an objective claim on a factual matter.
A statement is a factual matter even if you can only
imagine a method by which it might be verified. For
example, suppose I claim that humanoid life exists on
planets outside our galaxy. I can imagine methods that
could be used to determine whether this is true, even if I
cannot carry them out–send a faster-than-light spaceship
to look, perhaps. However, when I imagine methods I
may not indulge in pure fantasy; I must use widely
recognized criteria. If the consensus is that faster–than–
light travel is impossible, then my imagined test using a
faster-than-light ship fails to meet generally recognized
criteria. I would have to propose another way to test my
claim, using acceptable criteria. Whether you disbelieve
or disagree with my claim, it is an objective claim; either
there is or there is not humanoid life outside our galaxy,
independently of whether or not either of us believes it.
Subjective claims & opinions In contrast to objective
claims, subjective claims cannot be proved true or false
by any generally accepted criteria. Subjective claims often
express opinions, preferences, values, feelings, and
judgments. Even though they may involve facts, they do
not make factual (provable) claims, and therefore they
are, in a sense, neither true nor false in the same way an
objective claim is true or false. They are outside the realm
of what is verifiable. For example, consider the following
subjective claims:

 Trout tastes better than catfish. Touching a spider is

scary.
 Venus Williams is the greatest athlete of this decade.
Ha
Claim’s Settlement’s History
MUMBAI: The percentage of rejected claims to total claims is
much higher for private life insurance companies compared with
state-owned Life Insurance Corporation (LIC). According to
data released by the Insurance Regulatory and Development
Authority (IRDA), private life insurers received 13,139
individual death claims in 2006-07 compared with 6.02 lakh
claims recorded by LIC. Of the total number of claims received,
private life insurance companies settled 72.7% of the claims,
while LIC managed to settle 96.94% of claims.
The number of claims rejected by private insurers as a
percentage of claims booked was 13.98% in 2006-07, while the
claims rejected by LIC were 1.43%. Claims pending with
private insurers as on March 31, 2007 stood at 13.32% of total
claims received against 1.63% for LIC. LIC paid Rs 4289.28
crore as death claim benefits against Rs 155.46 crore paid by
private life insurers. Life insurers receive two types of claim, the
first are the maturity claims where the policyholder gets the
savings that accrue under his policy at the end of the term. Bulk
of the claims comes under this category, and usually there is no
dispute on maturity claims, as these payments are akin to
repayment of a maturing bond.
The second set of claims, which are far fewer, are death claims.
Section 45 IA of the Insurance Act 1938 allows insurers to reject
claims if there is suppression of material fact by the insured. In
life insurance, any information that has bearing on the mortality
of the proposer is considered to be a material fact. So, if a
proposer suffers from a serious ailment which is not disclosed,
the insurer can reject his claims. However, the Supreme Court
has said that the clause cannot be used unilaterally and it is for
the insurer to establish that the non-disclosure has a bearing on
mortality. In the first few years of operations, private life
insurers did not have much of a claims experience. Therefore, a
comparison on claims servicing between the private sector and
LIC was not possible. Now, with the private life industry being
in its seventh year, there has been a substantial number of
maturity and death claims. According to an official with a
private life insurance company, repudiations were higher in
group policies. Also, given that private companies have been
only a few years in existence, their share of early claims is
higher. Early claims are those which occur within two years of
the policyholder acquiring a policy. In such claims, insurers
double check on whether the terms of the policy have been
strictly met.
Another aspect of claims
Admission of Age:
Age is the main basis of calculation of premium under life
insurance policies. The following are accepted as
evidence of age:

records made at the time of birth.

Bible, if it contains age or date of birth.

or date of birth is stated therein.

Govt. employees and employees of Quasi-Govt.

Institutions or Passport issued by the Passport Authorities
in India
Payment of Premium:

 By cash, local cheque (subject to realization of
cheque), Demand Draft at Branch Office.
 The DD and cheques or Money Order may be sent by
post.
 You can pay your premiums at any of our Branches
as 99% of our Branches are networked.
 Many Banks do accept standing instructions to remit
the premiums. So by providing a standing instruction
to your Bank to debit your account for the premium
amount and send it vide a banker’s cheque to LIC, on
the due dates and months mentioned on your policy
bond.
 Through Internet : Payment of premiums can be
made through Internet through Service Providers
viz.HDFC Bank, ICICI Bank, Times of Money, Bill
Junction, UTI Bank, Bank of Punjab, Citibank,
Corporation Bank, Federal Bank and BillDesk.
 Premium payment can also be made through ATMs
of Corporation Bank and UTI Bank.
 Premium payment can also be made through
Electronic Clearing Service (ECS) which has been
launched at Mumbai, Hyderabad, Chennai, Kolkata,
New Delhi, Kanpur, Bangalore, Vijay Wada, Patna,
Jaipur, Chandigarh, Trivandrum, Ahmedabad, Pune,
Goa and Nagpur, Secunderabad & Visakhapatnam. A
 policyholder having an account in any Bank which is
a Member of the local Clearing House can opt for
ECS debit to pay premiums. The policyholders
wishing to use this system would have to fill up a
Mandate Form available at our Branches/DO and get
it certified by the Bank. The certified Mandate Forms
are to be submitted to our BO/DO.
 Policy can be anywhere in India.
 Citibank Kiosks at Industrial Assurance Building,
Churchgate, New India Building, Santacruz, Jeevan
Shikha Building, and Borivili are dedicated for
collection of premiums through cheques.
Days Of Grace:

 Policyholder should pay the premiums on due dates.
However, a grace period of one month but not less
than 30 days will be allowed for payment of
yearly/half-yearly/quarterly premiums and 15 days
for monthly premiums.
 When the days of grace expire on a Sunday or a
public holiday, the premium may be paid on the
following working day to keep the policy in force.

 If the premium is not paid before the expiry of the

days of grace, the policy lapses.
Revival of Lapsed Policy:
 If the policy has lapsed, it can be revived during the
life time of the life assured, within a period of five
years from the date of the first unpaid premium but
before the date of maturity subject to certain
conditions.
 The Corporation offers three convenient schemes of
revival viz., Ordinary Revival, Special Revival and
Installment Revival. Policies can also be revived
under Loan-cum-Revival and SB-cum-Revival
schemes.
 Request for revival may be made to the Branch
Office servicing the policy.

Change of Address and Transfer Of

Policy Records:


 The policyholder should immediately

intimate the change of his/her address to the
Branch Office servicing the policy. The
correct address facilitates better service and
quicker settlement of claims.
  Policy records can also be transferred from
one Branch Office to another for servicing,
as requested by the policyholder.
Loss of Policy Document:
 The Policy Document is an evidence of the contract
between the Insurer and the Insured. Hence the
policyholder should preserve the Policy Bond till the
contracted amount under it is settled.
 Loss of the Policy Document should be immediately
intimated to the Branch Office where it is serviced.

Loans:
 Loans are granted on policies to the extent of 90% of
Surrender Value of the policies which are in force and 85%
of the Surrender Value in case of policies which are paid-
up, inclusive of the cash value of bonus. The rate of interest
charged at present is 9% p.a. payable half-yearly.
Loans are not granted for a period shorter than six months. The
Conditions and Privileges printed on the back of the Policy
Bond states whether a particular policy is with or without the
loan facility.
Relief to Policyholders:

The Corporation generally allows concessions on
payment of premiums, settlement of claims, issue of
duplicate policies, etc. when the policyholder are affected
by natural calamities such as droughts, cyclones, floods,
earthquakes, etc.

Nomination:
Nomination is a right conferred on the holder of a Policy
of Life Assurance on his own life to appoint a person/s to
receive policy moneys in the event of the policy
becoming a claim by the assured’s death. The Nominee
does not get any other benefit except to receive the policy
moneys on the death of the Life Assured.

Survival Benefit/Maturity Claims:

 LIC settles survival benefit/maturity claims on or
before the due date.
 Policyholders are intimated well in advance by the
Branch Office which services the policy regarding
the payment, and the necessary Discharge Voucher
 is also sent for execution by the assured. In case the
policyholder does not get any intimation from the
Branch Office concerned, he/she should contact
them, quoting the Policy Number.
Survival Benefit payment up to Rs.60,000/- are settled
without insisting for Policy Bond and Discharge Voucher.

Death Claims:

 If the life assured dies during the term of the policy,
death claim arises. The death of the policyholder
should be immediately intimated in writing to the
Branch Office where the policy is serviced along
with the following particulars:
1. The No./s of the policy/ies
2. The name of the policyholder
3. Death Certificate issued by concerned Authority
4. The date of death
5. The cause of death and
6. Claimant’s relationship with the deceased
 On receipt of the intimation of death, necessary
claim forms are sent by the Branch Office for
completion along with instructions regarding the
procedure to be followed by the claimant.
 The claims which have arisen after a period of three
years are treated as non-early claims and settled
 within 30 days from the date of receipt of all
requirements.
 The claims that have arisen within a period of two
years from the date of commencement of the policy
are treated as early claims and investigation is
compulsory in such cases.
 The claim is usually payable to the nominee/assignee
or the legal heirs, as the case may be. However, if
the deceased policyholder has not
nominated/assigned the policy or if he/she has not
made a suitable provision regarding the policy
moneys by way of a Will, the claim is payable to the
holder of a Succession Certificate or some such
evidence of title from a Court of Law.
 The Corporation grants claims concessions under
certain Plans whereby payment of full sum assured is
made, subject to the deduction of unpaid premiums
with interest till the date of death and unpaid
premiums falling due before the next anniversary of
the policy, in the event of the death of the life

Assured within a period of six months or one year from

the date of the first unpaid premium, provided premiums
have been paid for at least three years and five years
respectively.
COMPETITORS OF LIC
 ICICI Prudential
 SBI life insurance
 HDFC Life
 IDBI Federal Life Insurance
 Max Life Insurance
ICICI Prudential Life Insurance:

ICICI Prudential Life insurance is a joint venture between the ICICI

group and Prudential Plc., of the UK. ICICI standard off its operation
in 1955 with providing finance for industrial development, and since
then it has diversified into housing finance, consumer finance, mutual
funds to being a Universal Bank and its latest venture Life insurance.
Foreign Partner
Established in 1848, Prudential plc. Of U.K has grown to be the largest
life insurance and mutual fund Company in U.K. Prudential plc. Has had
its presence in Asia for the past 75 years catering to over 1 million
customers across 11 Asian countries. Prudential is the largest Life
Insurance Company in the United Kingdom. ICICI and prudential came
together in 1993 to provide mutual fund product in India and today are
the largest private sector mutual fund company in India. Their largest
venture ICICI Prudential Life plans to take care of the insurance needs at
various stages of life.
SBI Life Insurance:-
SBI Life Insurance Company Ltd is a joint venture between India’s
largest banks, State Bank of India and Cardiff S.A. a leading Life
Insurance Company in France.
State bank of India is a household name,
and it stands as the last world for financial strength and security in the
country. SBI’s illus tries background dates back to the year 1806 when it
started business, as a Presidency Bank, known as Bank of Bengal. Over
the long journey, it has learnt to combine the best of banking practices
handed down from the imperial management with the more Dynamic
ways of doing banking in the modern India. It has grown as a
responsible giant in the banking field over the years. .
SBI Life Insurance Company Ltd is
registered as a life Insurance Company with the Insurance Regulatory &
Development Authority of India and has been issued License number
111 on 29th March 2001. The Company’s authorized capital is Rs. 250
crores, and the paid up capital at present is Rs.125 crores. SBI owns
74%of the total equity, and Cardiff the balance 26%.

HDFC Life:-
HDFC Life (HDFC Life Insurance Company Ltd.) is a long-term life
insurance provider with its headquarters in Mumbai, offering individual
and group insurance.
It is a joint venture between Housing Development Finance Corporation
Ltd (HDFC), one of India's leading housing finance institution
and Standard Life Aberdeen PLC, leading well known provider of
financial savings & investments services in the United Kingdom. On 14
August 2015 HDFC Ltd. entered into a share sale agreement with
Standard Life to sell a 9.00% stake in HDFC Life to the latter. The
transaction is subject to receipt of regulatory approvals. Post the
completion of the above transaction, HDFC will hold 61.65% stake in
HDFC Life and Standard Life's stake will increase to 35.00% HDFC
Life has about 414 branches and presence in 980+ cities and towns in
India. The company has also established a liaison office in Dubai.
HDFC Life distributes its products through a multi-channel network
consisting of Insurance agents, Banc assurance partners (HDFC
Bank, Saraswat Bank, RBL Bank), direct channel, Insurance Brokers &
Online Insurance Platform.
IDBI Federal Life Insurance:-
In the year 2006, IDBI Bank, Federal Bank and Belgian-Dutch insurance
major Fortis Insurance International NV signed a MoU to start a life
insurance company in India. The company received its license
from Insurance Regulatory and Development Authority of India(IRDAI)
(j.Arul jegadeesh one of the trainee in the idbi federal life insurance
company in Madurai) in December 2007.[2]
IDBI Fortis Life Insurance Co. Ltd. officially began its operations in
March 2008. In August 2008, the company collected the premium of
over Rs.100 crore within a record time of five months, thus becoming
the fastest growing new life insurance company in the private sector.
India-Sri Lanka ODI series that took place in October 2009, found a title
sponsor in insurance major IDBI Fortis. The company’s AUM crossed
the Rs. 1,000 crore mark for the first time in March 2010.
In August 2010, the company was rechristened as IDBI Federal Life
Insurance Company. In 2012-13, it declared its maiden profits in record
5 years, thus was one of the fastest to do so in the industry. It yet again
clocked Rs. 80 crore profits for the financial year 2013-14 and has
maintained its profitable trajectory from thereon.
Max Life Insurance:-
Max Life Insurance Company Limited (formerly known as Max New
York Life Insurance Company Limited) is a leading life
insurance company in India. The company is a subsidiary of the publicly
listed Max Financial Services Limited and is the largest non-bank
private-sector life insurer in India. It was founded in 2000 after the
liberalization of the insurance sector in India and its operations began in
2001. Analjit Singh, founder of Max Healthcare, is the chairman of Max
Life Insurance. The company is headquartered at New Delhi.
Max Life has approximately 2, 00,000 life insurance
customers in India. Its distribution channel includes banks, individual
agents, brokers, and corporate agents, among others. It provides linked,
participating and non-participating products. Apart from life coverage, it
also covers health, pension, and annuity. It offers child, protection,
retirement, savings, and growth plans to individuals and to groups.
RESEARCH METHODOLOGY
OBJECTIVE OF STUDY

 The prime objective of the study is to find out the

level of satisfaction of a customer (policy holders or
beneficiary) so far as the settlement of claims.
 To find out the procedure of claim policy holder or
the beneficiary.

Parameters of Research

 Product range offered.

 Service quality.
 Network
 Benefit offered to customer’s
Primary data: through observation as well as personal interview

Secondary data: is collected from various bibliographical sources such

as journals, novels, magazines, publications and various websites
including the official website of LIC and various other company
websites. The published research reports and market studies also helped
the researcher to gauge into the problem.
(This research is fully based on secondary data)
DATA ANALYSIS AND
INTERPRETATION
DATA ANALYSIS AND INTERPRETATION
CUSTOMERS PRECEPTION TOWARDS
SERVICES
LIC HDFC ICICI OTHRS

50% 25% 15% 10%

Customer Perception Towards Services

10%

15%

LIC
HDFC
50%
ICICI
Others

25%

(LIC IS HAVE MORE CUSTOMERS RATHER THAN OTHERS)

CUSTOMERS RELATIONSHIP
DEPARTMENTS

LIC HDFC ICICI Others

40% 30% 20% 10%

10%

20% 40%

LIC
HDFC
ICICI
Others

30%

(IN LIC CRM DEAPARMENTS MOST TO SATISFIED THE

CUSTOMERS)
PUBLIC RELATIONS
LIC HDFC ICICI Others
40% 30% 20% 10%

10%

20% 40%

LIC
HDFC
ICICI
Others

30%

(IN LIC MOSTLY CENCENTRATE ON PUBLIC RELATIONS)

LIC POLICIES AND BETTER PLANS

LIC HDFC ICICI Others

40% 30% 20% 10%

10%

20% 40%

LIC
HDFC
ICICI
Others

30%

(LIC IS ONE OF FIRST INSURANCE COMPANY WHICH PROVIDE

MORE SERVICES)
Which product offered more to the customers?

Findings
Product offered to customer

 Children's Policy
1. Child Money Back (832)
2. Jeevan Tarun (834)

 Endowment Policy
1. Jeevan Anand (815)
2. Jeevan Rakshak (827)
3. Aadhaar Stambh (843)
4. Aadhaar Shila (844)
5. Jeevan Labh (836)

 Money Back Policy

1. 20 Years Money Back (820)
2. Bima Bachat (816)
3. 25 Years Money Back (821)
4. Bima Shree (848)

 Pension Plans or Annuities

1. Jeevan Nidhi (818)
2. Jeevan Akshay 6 (189)
3. Jeevan Shanti (850)
4. Pradhan Mantri Vandana Yojana (842)

 Term Policy
1. Anmol Jeevan I (822 )
2. Amulya Jeevan (823)

 Health Policy
1. Jeevan Arogya (904)
2. Cancer Cover (905)
 Service Quality

1. Your Policy Bond And Its Safety

2. Your Policy Number
3. Policy Conditions
4. Alterations In Policy
5. If Your Policy Is Lost
6. Your Contact Address – Keep Us Posted Without Fail
7. Admission Of Age
8. Nomination
9. Assignment
10.When To Pay The Premiums
11.Grace Period For Premium Payment
12.How And Where To Pay The Premiums
13.Policy Status – Where Available
14.Revival Of Lapsed Policies
15.Availing Loans On Policies
16.Surrender Value
17.Maturity, Survival Benefits, Disability And Death Claims
18.Policies Under Salary Savings Scheme
19.Helpline

Your Policy Bond and Its Safety

The policy bond is the document that is given to you after we accept your proposal
for insurance. The risk coverage commences after acceptance of your proposal and
the conditions and privileges of your policy are mentioned in the policy bond. This
is an important document which would be referred to for various servicing
interactions with you – Keep the policy bond safe. It will be required at the time of
settlement of claims on the policy. You will also require it if you are availing a
loan or want to assign the policy. Inform your spouse/Parents/Children as to where
the policy is kept. In case you are handing over the policy bond to any person or
office, please take a written acknowledgement. Keep a Photostat copy of the policy
for your reference.

Your Policy Number

The policy number is consisting of nine digits and can be found at the top left hand
corner of the schedule of your policy bond. This is a unique identification number
that distinguishes your policies from other policies and will remain unchanged
throughout the lifetime of the policy. Remember to quote the policy number every
time in your correspondence, as it helps us to locate your records for reference.

Policy Conditions
Every policy is taken for different types of needs; therefore the conditions for your
policy will vary according to the Plan and Term of the policy. The policy schedule
contains on the first page of your policy, like the ones mentioned above as well as
other information like nominee, your address etc. It also shows the date of
commencement of your policy, date of birth, date of maturity, due dates and
months in which the renewal premiums are to be paid etc. The second page
onwards carries the various policy conditions like risk coverage, additional risks
coverage if opted for, standard benefits that are available for all policies, accident
benefit if opted for, exclusion of risks if any and other conditions that govern the
contract of insurance. Apart from death benefits there are other standard benefits
and benefits opted by the policyholder.

Alterations In Policy
There may be instances when you would like to make alterations in your policy
like change of premium payment mode, reduction in premium paying term etc.
your applications may be given in writing to the branch that services your policy
for our further action.

If Your Policy Is Lost

Kindly make a thorough search before concluding that you have lost the policy
bond. Look for the same within your residence, among your investment papers, at
your office and even with your agent to whom you might have entrusted the
document for some reason. It could have been even pledged with LIC/any other
financial institution for availing a loan by you. LIC retains the policy bond when
you go in for a loan against the policy. Make sure that the document you are
searching is not one that has already been assigned to LIC, or to another financial
institution. If the policy bond is partially destroyed due to natural causes like, fire,
flood, etc, the remaining portion may be returned as evidence of loss of policy to
LIC, while applying for a duplicate policy. In case you are sure that the policy
bond is untraceable due to unknown causes, there is a simple procedure to comply
with while applying for the duplicate policy at the branch that services your policy.
Your Contact Address – Keep Us Posted without Fail
Your address is very important for us. Without your latest address we would not be
in a position to contact you for any service offering. We would not like to keep any
benefit that is due to you pending for want of this very important information.
Whenever you shift residences, please inform the new address to us. Otherwise any
communication we send to you, like premium notices, discharge vouchers for
maturity and survival benefits etc., will get delayed in reaching you. LIC provides
for change of addresses, inclusion of telephone numbers, mobile numbers and
email addresses in your contact addresses information. Kindly inform your
servicing branch to incorporate the same in your policy records.

Admission of Age
Check your policy bond and see if your date of birth is correctly given therein.
This is one of the factors on which the premiums you pay for your policy is arrived
at. This would also form the basis of all future policies you might avail from us. In
case your earlier policies do not have your date of birth incorporated and you do
have a date of birth certificate issued by the competent authority, you may send an
attested copy of the same to us, with a request to admit your age.

Nomination
Ensure that the nominees name is correctly incorporated in the policy bond. You
may change the nomination in your policy any time during the lifetime of the
policy In case you have not included the name of the nominee till now, please do
not delay; inform us your nomination immediately. Kindly note that the change of
nomination has to be done in the branch that services your policy. The nominee is
the person to whom the insurance claim amounts would be payable, in case
anything unfortunate within the purview of the policy conditions happens to you.
The policy is usually taken by you to benefit your family – nominate the persons
who’ll have the welfare of your family in your absence; the usual preferences
being spouse and children. You may nominate even minors like your children, in
which case you have to name another person who’ll have the welfare of the minor
children, as an appointee.

Assignment
In case you are raising a loan against your policy from LIC or any other financial
institution, your policy would have to be assigned to LIC or the financial
institution. When you assign the policy the title of the policy is shifted from your
name to that of the institution. The policy would be reassigned to you on the
repayment of the loan. A fresh nomination should be done after reassignment of
the policy. Assignment of policies can be done even when a loan is not required or
for some special purposes.

When to Pay the Premiums

Remember to pay your premium in time, even if our notices do not reach you.
There may be a postal delay. LIC usually sends premium notices one month in
advance to the due month of the premium. The months in which premiums are due
are given on the first page of the Policy bond.

Grace Period for Premium Payment

In case you have not paid the premium within the due date there is still time for
you to make the payments without payment of interest on the premium. This
period is called the grace period. (With the exception of some plans) The grace
period for policies where the premium payment mode is monthly is 15 days from
the due date. The grace period for policies where the premium payment mode is
quarterly, half-yearly or yearly is one month but not less than30 days.

How and Where To Pay the Premiums

By cash, local cheque (subject to realization of cheque), Demand Draft at
Branch Office.
The DD and cheques or Money Order may be sent by post.
You can pay your premiums at any of our Branches as 99% of our Branches
are networked.
Many Banks do accept standing instructions to remit the premiums. So by
providing a standing instruction to your Bank to debit your account for the
premium amount and send it vide a banker’s cheque to LIC, on the due dates and
months mentioned on your policy bond.
Through Internet: Payment of premiums can be made through Internet through
Service Providers viz.HDFC Bank, ICICI Bank, Times of Money, Bill Junction,
UTI Bank, Bank of Punjab, Citibank, Corporation Bank, Federal Bank and Bill
Desk.
Premium payment can also be made through ATMs of Corporation Bank and
UTI Bank.
Premium payment can also be made through Electronic Clearing Service
(ECS) which has been launched at Mumbai, Hyderabad, Chennai, Kolkata, New
Delhi, Kanpur, Bangalore, Vijayawada, Patna, Jaipur, Chandigarh, and
Trivandrum. A policyholder having an account in any Bank which is a Member of
the local Clearing House can opt for ECS debit to pay premiums. The
policyholders wishing to use this system would have to fill up a Mandate Form
available at our Branches/DO and get it certified by the Bank. The certified
Mandate Forms are to be submitted to our BO/DO.

Policy can be anywhere in India:

Citibank Kiosks at Industrial Assurance Building, Church gate, New India
Building, Santa Cruz, Jeevan Shikha Building, Borivili are dedicated for collection
of premiums through cheques.

Policy Status – Where Available

Status of your policy indicates if your policy is in force or has lapsed due to non-
payment of premium. It also provides other important information with respect to
your policy, for your reference. The status of your policy is available at the branch
that services your policies. It is also available through our Interactive Voice
Response Systems in select cities In cities connected by our computerized
networks the status will be available in any of the branches. Now the policy status
of policies being serviced in the cities connected by network are also available
through Internet In select cities online touch screen kiosks are also provided where
you can view your policy status.

Revival of Lapsed Policies

If your policy has lapsed due to non-payment of premiums within the due date, the
terms and conditions of the policy contract are rendered void, till you revive your
policy. A lapsed policy has to be revived by payment of the accumulated premiums
with interest as well as giving the health requirements as required. Always keep
your policy in force to ensure that your family gets their financial protection
assured by your policy. However certain concessions dependent on the term for
which you have paid the premiums are available with the exception of some plans
for claims concession
Surrender Value
This is the value which is the amount payable to you should you decide to
discontinue the policy and encash the same from LIC. Surrender value is payable
only after three full years premiums are paid to LIC. More over if it is a
participating policy the Bonus get attached to it as per prevalent rules. Surrender of
policy is not recommended since the surrender value would always be
proportionately low. Should you decide to go in for insurance at this stage further
insurance would be available to you at a much higher premium because your age
would have advanced since taking out the earlier policy. Therefore retention of
earlier policies and continuation of all policies without allowing them to lapse is
the best strategy for continuing life insurance protection.

Maturity, Survival Benefits, Disability And Death Claims:

When your Survival Benefits (For Money back policies) or maturity benefits are
due, we send intimations to you in advance. However, if the survival benefit
amount is less than or equal to Rs.60, 000/- the same will be sent to you directly
without policy or discharge forms with a few exceptions. If such intimations have
not come to you before the due date kindly inform us so that we may take
necessary action

Policies Under Salary Savings Scheme

If you have taken your policy under salary Saving Scheme please read the
following suggestions:
1. For each Salary Savings Scheme Policy your employer deducts the premium
from your salary and sends a consolidated cheque for all the policies of the
employees to a designated Branch of LIC, where all the policy files are maintained.
2. You can find out which Branch of LIC your policy file will be serviced either
from your Agent or from the pay roll department of your employer.
3. You will need to know which branch of LIC services your policy because you
will require their help in getting your Maturity/Survival Benefits, for any
alterations like change of address and for availing loans etc.
4. In case you are in a transferable job please inform the designated Branch of LIC
about your new place of posting. After you join your new place of posting please
ask your employer the LIC Branch where the premiums are being remitted by your
office there and inform the LIC Branch which was servicing you earlier so that
your policy files can be transferred.
5. This way your records will never be at correct place and will receive the services
from us like maturity, in time. In case you are leaving your employer for a new job
or joining another firm, you have the facility to either continue the policy under the
Salary Savings Scheme of your new firm or to convert the payment mode into
quarterly, half yearly or yearly mode.
6. Always ensure the continuity of premium payments to avoid frequent revivals of
policy. This may become a cumbersome process for a person who is in a
transferable job.
7. Please do not send any installments directly to us. Your premium must come
through your employer only. We do not have systems to adjust single installments
received from our policy holders. Otherwise please convert the mode into
quarterly, half yearly, or yearly and pay directly. This way you also get a discount
on the premium payable.
8. Leave a permanent local address with us so that we can reach you wherever you
are even after many years.

Disclaimer:
The information contained herein is only to guide you and does not purport to be
binding on either party. The contractual implications of your policy will be subject
to the terms and conditions of your proposal and the policy document issued to
you. They may be also subject to the rules and regulations of the corporation
notified from time to time which may be subject to revision and change. The
contract will also be subject to the prevailing laws of the country.

Helpline
To ensure that you get the best out of your policy please read our guidelines
carefully.
1. Keep the policy bond safe. It will be required at the time of maturity or Survival
Benefit. You will also require it if you are availing a loan or want to assign your
policy.
2. Inform your spouse/Parents/Children as to where the policy is kept.
3. When you shift residences, please inform the new address to us. Otherwise any
communication we send to you, like premium notices, discharge vouchers, etc.,
will get delayed in reaching you.
4. Ensure that the nominees name is correctly incorporated in the policy bond.
5. Remember to pay your premium in time, even if our notices do not reach you.
There may be a postal delay. The months in which premium are due are given in
the Policy bond.
6. You may pay the premium by Cheque, DD or Money Order. Remember to quote
the policy number every time in your correspondence. The policy number is
consisting of nine digits and can be found at the top left hand corner of the policy
bond.
7. Check your policy bond and see if your date of birth is correctly given therein.
8. In case you are handing over the policy bond to any person or office, including
the LIC office please take a written acknowledgement.
9. When your Survival Benefits (For Money back policies) or maturity benefits are
due, we send intimations to your three months in advance. If such intimations have
not come to your even within one month of the due date kindly inform us so that
we may take necessary action.
10. When in doubt call your agent or the Branch from where you took the policy.

Our Branches are our Operating Units. Hence, for any servicing matter, contact the
Servicing Branch of your policy. However, for obtaining general information, you
can contact any of the Branches of LIC.
Network of LIC
All Life Insurance Corporation branches in the country would be interconnected
under Metro Area Network (MAN) inaugurated here on Thursday. Speaking at the
function, K Vaidyalingam, LIC southern zonal manager, said about 1500 branches
would be getting covered under MAN in which the premium amount of the policy
holder could be remitted in any branch. Besides, the policy holder gets his status
report, policy position, revival and quotation from the network. In every one hour
the system got upgraded, he said. In southern region there are about 10 lakh new
policy holders with a business of Rs 6500 crore. About settlement of claims, 92 per
cent of policies were settled on or before maturity, he said, adding, LIC was in a
better position and 100 per cent connectivity was taking place. Kottayam stood
third in premium collection during the period between April to August 2002, the
first being Kozhikode and Thiruvananthapuram in second position in southern
region. The premium amount collected in 2001 was Rs.74, 000 crore through 2.32
crore new policies by 8.2 lakh agents. LIC has introduced a new group insurance
scheme for Corporation Bank deposit holders.

INTERNATIONAL OPERATIONS/ASSOCIATES
LIC has always acknowledged the need to expand. Our expanding efforts have
been consistent and are evident though our associations given below for your
reference.

INTERNATIONAL OPERATIONS
LIC Fiji
LIC Mauritius
LIC United Kingdom
LIC (International) B.S.C (C), Bahrain
LIC (Nepal) Ltd
LIC (Lanka) Ltd
Saudi Indian Company for Co-op. Insurance, KSA.

LIC Mauritius Offshore Ltd.

LIC Co-coordinating Office in India

ASSOCIATES
LIC Housing Finance Ltd.

LIC HLF Care Homes Ltd.

LIC Mutual Fund AMC Ltd.

Benefit offered to Customer’s

LIC the best-known Indian brand: Chidambaram

FROM STRENGTH TO STRENGTH: EX Union Finance Minister
P. Chidambaram launching LIC’s web portal in Chennai on
Tuesday. Others from left are D.K. Mehotra, Managing Director,
LIC, and A.K. Shukla, Chairman. — Photo: Shaju John
CHENNAI: Describing Life Insurance Corporation of India as the best-known
Indian brand, Union Finance Minister P. Chidambaram, said on Tuesday that even
after the opening up of the insurance sector to private firms, the Corporation
remained the market leader.
Launching LIC's e-portal here, he said the Corporation "supported us (government)
when we opened up insurance because it was confident of doing better in a
competitive environment. LIC continues to be the market leader with 88 per cent
market share of new policies and 78 per cent of premium. It is clearly recognised
as the market leader."
The e-portal (licindia.com) will provide information on policy status, bonus,
premium payment, loans and change of address. It will facilitate online payment of
premium and has details of the doctors and agents. It also has a branch locator and
`maturity alert' facility. The objective is to provide world-class service.
Noting that the State-owned Corporation utilised information technology in its
relentless effort to remain the leader, Mr. Chidambaram said: "My goal is to make
LIC a world class insurance company. It is nearly world class now." All 2,048
branches of LIC, which had been adjudged the best user of IT by NASSCOM,
were fully automated. Barring ten, all the branches were networked.
Mr. Chidambaram said the e-portal was another example of LIC's constant
innovation using information technology. Some of the multi-interfaces it offered to
customers included call centres, IVRS, SMS and satellite branches.
Bonus rates
Announcing the bonus rates on LIC policies, Mr. Chidambaram said on Whole
Life policies it would be Rs. 71 (per Rs. 1,000 sum assured). On endowment
policies the bonus ranges from Rs. 34 to Rs. 50. It will be between Rs. 32 and Rs.
45 on money-back policies.
The bonus for Jeevan Dhara and Jeevan Suraksha schemes has been enhanced and
the terminal bonus retained at last year's level. The bonus is in addition to the
special bonus announced during the golden jubilee celebrations of LIC in
September.
LIC Chairman A.K. Shukla said the Corporation catered to 18 crore policy holders
and the size of the life fund had crossed Rs. 3.85 lakh crores.
Stating that LIC believed in deploying the latest technology for the benefit of all
concerned, he said the portal would enable customers to access a range of services
from the comfort of their home.
K. Sridhar, managing director of LIC, said: "Better servicing alone can give us new
business."
Why LIC is trusted brand of India?
1. As a Govt of India owned Company, LIC is 51 + years old in the field of life
insurance and money management. LIC's Life Fund size as on day is more than Rs
5 Lakh Thousand Crores !
2. Any LIC policyholder or the nominee will vouch for the best claims settlement
from LIC. Perhaps, this is the only institution where you as a policyholder are
virtually chased till such time your claim cheques is handed over to you !
3. LIC has won `NDTV Profit Leadership Award 2007 under Life Insurance
Category', `Outlook Money Award 2007 as the best Life Insurer', `CNBC
Awaaz Consumer Award 2007 as the best Life Insurance Company', `Golden
Peacock Award for excellence in Corporate Governence 2007', `Web 18
Genius of the Web Award 2007 and many more'.
4. LIC adjudged No.1 Trusted Service Brand for the 4th successive year by ET
Brand Equity Survey.
5. LIC has been adjudged Superbrand India for 2004-06 and Reader's Digest
`Trusted Brand' Asia 2007.
6. This is the only corporation that is catering to more than 190 million satisfied
policyholders in India and abroad.
7. This is one of the very few institutions that pays ex-gratia interest on
pending maturity claims !
8. More than 2050 LIC branches all over India are connected together to serve you.
You can pay your premium anywhere in the country.
9. During its long existence, LIC has kept on updating its portfolio by bringing in
new plans depending on public requirement. More than 50 of them are most
popular and can be customized to meet any of your requirements. LIC ULIPs have
become extremely popular due to the returns they offer. Money Plus- latest LIC
Unit Linked Plan is a case in point.
10. All LIC Plans come with Sovereign Guarantee i.e., Govt of India
Guarantee regarding repayment. Infact, as of now, only LIC plans enjoy this
Govt Guarantee. Beneficiary for this Sovereign Guarantee is you and you
alone as the policyholder/ would-be policyholder.
11. All LIC plans are characterized by low premium, high life insurance coverage
and a vast package of benefits offered by them. Add to this package, section 80C
benefit and section 10(10D) benefit on the maturity proceeds, you will find
investment on LIC plans one of the most coveted investment options available to
you.
12. Premium paid under Key-Man Insurance plan is a recognized business expense
under section 37(I) of the Income-Tax Act. For companies making profits, this is a
very good incentive indeed.
13. Through Employer-Employee Insurance scheme, you can recognize the worth
of your most valuable employees whose absence you can ill afford to loose.
14. Entire contribution to LIC Group Gratuity Scheme is a recognized business
expense in the hands of the employer. In addition, through this scheme, the
employer can transfer his gratuity liability to the corporation and fund the same
under cash accumulation scheme. The most popular among all the companies.
15. LIC is declaring quite an impressive bonus (profits) on all its with-profits
policies every year. Extra attraction under LIC Bonus is (a) it is calculated every
year on the insured amount and not on the premium paid and (b) entire bonus
received along with insured amount either by you on maturity of your policy(ies)
or by your nominee in your absence during the currency of your policy(ies) is free
from income-tax under section 10(10D) of the Income-tax Act.
16. On most of the LIC plans, you can borrow to take care of your immediate
monetary requirements. None of the policy benefits get affected as a result of
borrowal. Infact, policy loans offer one of the most attractive investment
opportunities.
17. You can pay your premium 3 years in advance at 5% discount. Chief
attractions of this advance payment of premium are (a) there is no possibility of
your overlooking your premium payment and getting your policy(ies) lapsed
wherever you are in the world and (b) you will be earning 5% tax-free interest on
the unutilized portion of the amount left with LIC after apportioning the regular
installment.
18. Most of the LIC plans come with Riders to take care of Total and Permanent
Disablement due to Accident and some of the most dread diseases that may result
in loss of income.
19. LIC pension plans that guarantee you life pension are extremely popular. You
can park your hard earned money safely with the corporation and enjoy pension as
long as you are alive.

Due to these reasons and lot more, LIC should be your obvious choice for all
your life insurance requirements.
LIC is India’s most trusted brand, INSURING LIVES AND ENSURING
SMILES from more than 50 Years. SUPER BRAND & MOST TRUSTED
SERVICE BRAND OF INDIA. BEST IT USER IN INDIA (NASSCOM – 2003).
Largest Institutional Investor in India and Second largest in Asia among insurers.
(Source: Asian Investor) LIC - An Institution Builder promoting many financial
and insurance institutes like NSE, NCDEX, LIC Mutual Fund, Stock Holding
Corporation of India, National Insurance Academy, Insurance Institute of India etc.
LIC is the largest life insurer of India Asset value as on 31.3.2004: 3,673,598.4
mn (INR). Offers over 45 plans to cover your life at various stages Over 160
million customers and 1.1 million agents. It has underwritten more than 160
million policies. 2,048 branch offices (all computerized) of which 2019 are
networked ”From all above we can say our money is safe and secure with
assured returns.”
Project Analysis
The Positive side of LIC as well as Negative side of LIC. I encourage other readers
to correct me if I am wrong and also add light to any point that I may have missed.
First let’s talk about the Positive side of LIC 1. LIC is owned by the government
and therefore it is the only company besides the PPF that has the sovereign
guarantee of the govt. of India. It is a different story that today LIC has become so
powerful that the govt. leans on LIC every time that the Stock Market crashes.
Imagine having an Asset base of over Rs 6 Lac Crore. . That’s a 14 digit number!
No company in India can boast of such figures. Mind boggling. 2. LIC is the only
Life Insurance Company making profits. Most of the Private Insurers including the
self proclaimed market leaders like ICICI and Bajaj Allianz are booking heavy
losses. Check IRDA website in the Annual Report column. The point is that if an
insurance company makes losses year over year, then how will they manage to pay
the Claim amount? Afterall no Insurance company is here to do charity business. 3.
When it comes to paying claims, again LIC is Number One with the claims
settlement ratio of more than 99%. Private Insurers cannot match LIC’s ability on
claims settlement. Again, please visit IrDA’s website to see the claims settlement
performance of various companies. 4. LIC has the world’s largest sales force, yes
over 10 lac agents and now universities in western countries are trying to study
how a company managed to appoint such a large sales force. A sales force of over
1 million! Truly a remarkable achievement. 5. Many people argue that LIC has not
been able to penetrate the market as it has insured only 15% of the population. My
point is, in a poor country like India where there are so many people living below
the poverty line, so many people who die of starvation, so many people who don’t
have access to basic medication, so many people who don’t have basic necessities
of life like food, shelter, education and clothing. Will such a person first feed his
children or buy Insurance ? Lets not forget that a majority of the Indian population
is poor and a substantial percentage is living below the poverty line. At a personal
level i feel that LIC has done a satisfactory job of insuring people.
 NOW THE NEGATIVE POINTS OF LIC
1. The Administrative staff in LIC is in deep slumber. Try writing a complaint to
them and they won’t even bother to reply back. If you ask the Branch Manager for
the complaints book, he probably won’t have it in place. If an Agent complains
against any staff, then the Agent is black listed and next time onwards his work is
not done.

2. In order to show a better performance & achieve branch Targets, Agents are
motivated by the Managers to split the policies. This not only adds to the
inconvenience of the policyholders but it also increases the expenses of LIC.
Competitions for Agents are held with Prizes being offered on the number of
policies sold and not on the number of lives insured. Therefore many Agents are
tempted to split the policies in order to get better prizes. However if an agent wants
the forms or sales literature, most of the time it’s out of stock. But surprisingly just
a week before any scheme is about to close, the office is flooded with forms &
sales literature. This is very disturbing.

3, As I earlier said, LIC is lacking in Effective Leadership in recent times.

Managers having designations like Marketing Manager or Sales Manager don’t
have the capability to motivate an audience at a meeting. Yes this is true even in a
city like Mumbai. Even the senior level managers cannot make effective
presentations or design a sales strategy. Their only mantra at an Agents meeting is
"Friends, bring more policies!’. If you ask them how
to bring more policies, they won’t know. Its a pity!

4. Though LIC has more than 2000 branches, they are not systematically located.
In Mumbai’s Fort area, LIC has more than 20 branches within a radius of 1.5kms.
What’s the use ? In the suburbs where most of the people reside, there are no
branches at all. LIC has no branches in Bandra East, Khar East & West,
Santa Cruz East, Vile Parle East, Andheri West, Jogeshwari West, Mahim,
Matunga, etc. If LIC gives a thought to systematic relocation of its offices, it will
immensly help the policyholders.

5. Even though LIC claims to have taken several initiatives in the IT sector,
policyholders still face problems in revival of their policies, payment of premium
in several branches, change of mode, change of address, etc. The After-sales policy
services department needs to be revamped. Policyholders feel that LIC agents are
humble while selling a policy and thereafter they fail to provide any service to the
client. The truth is that LIC is so weak in policy services department, that even a
good agent finds it difficult to get the work done from the administrative staff.

To sum up, i would say that LIC will never cheat a Policyholder in payment of
claim, but at the same time everyone will agree that LIC is not responsive to the
needs of the customer. If you have purchased an LIC policies then don’t forget to
pay the premium on time, and when your policy gets matured LIC will honestly
pay your Maturity amount on time.

The employees are sometimes rude in their behavior with the Policyholder. If
claim cheques are handed over by a courteous and smiling employee of LIC, it will
enhance the image of LIC in the mind of the policyholder.

Today LIC is not just Insurance Company, LIC is a Movement, LIC is a Cult, and
LIC is a Religion. Imagine 10 lac agents and 1 lac employees serving 16 crore
policyholders in India. You cannot deny that LIC has become the way of life in
India. Daily you can hear someone or the other talking of LIC in local trains, at
fish markets, at restaurants, on News Channels, in your own offices, etc.

As i earlier said, LIC has started lacking in effective leadership. If a company like
LIC starts sponsoring irrelevant awards like Zee Cine awards which it had done 2
years ago, then it will send the wrong message in the minds of the policyholders.
Imagine India’s most famous institution sponsoring a Cine Awards function stating
that it was done to increase the brand awareness of LIC. That sounded like a big
joke. It is time that the top level officials of LIC come out of their air-conditioned
cabins and travel by public transport for some time in order to feel the pulse of the
common man.
Conclusion
After Finding’s we can see about LIC features and his The tendency to take the
expedient approach and focus on the far right of the LIC spectrum, Peacetime
Contingency Operations and conduct training as usual, while briefing that the LIC
block has been checked, will lead us to a possibly fatal false sense of security.
Instinctive behavior and ingrained training must be adjusted to fit new
circumstances. STXs must be developed locally or borrowed from units who have
already been through the training.
The probability of becoming involved in a LIC operation is high. The potential to
attract international attention, even with limited forces, is also great. Units have
demonstrated that with a balanced training focus and proper preparation, many
pitfalls outlined above can be avoided.
LIC is not conventional warfare. This is critical for the counterinsurgent to
understand. The insurgent’s violent and coercive strategy is applied so as to
achieve political, civil, military and psychological results. Hence, the
counterinsurgent must counter all of these strategic elements individually. In
addition, the target of the insurgent’s violence and coercion is the population. This
is because the population is the center of gravity in LIC. Therefore the
counterinsurgent must also focus on the population to be successful. In terms of
military principles in counterinsurgency, doctrinal precision, professionalism,
independence, initiative, force precision, restraint, combined arms, precision
engagement, joint force, effective population based intelligence, integrated
communications, a civil affairs approach and high levels of training are critical.
So we can say that so many merit’s and Demerit’s in life insurance Corporation of
India.
BIBLIOGRAPHY
Important websites –

Magazine

–Lic Magazine

News Paper
LIMITATION OF THE PROJECT
Lic has been so many limitations
A. A Dealer is not required to obtain the seller’s identification, photograph the
seller, record the seller’s thumbprint, or have the seller complete the Declaration of
Proof of Ownership if the Dealer complies with the remaining requirements in the
Administrative Rules and if:
1. The item is acquired through consignment by a Dealer from a person who lives
more than 150 miles from the City of Portland and the consigned property is
mailed, shipped, or sent by courier to the Dealer.

2. The item is acquired during a trade show. All items acquired during a trade show
by a Dealer must be reported. At the time of the transaction, the Dealer must write
on the transaction report a complete, legible and accurate description of the
regulated property of sufficient detail to distinguish like objects one from the other.
The Dealer must also record the name and date of the event and the address of the
venue in the name, date, and address fields of the transaction report form. Items
acquired during a trade show may be sold or traded during the trade show without
being held. Items still in a Dealer’s possession at the end of the show will be
subject to the hold period requirement in effect for that Dealer’s acquisitions of
regulated property.

3. The item is acquired from a business whose acquisitions of regulated property

consist exclusively of donated items and/or purchases from a 501(c)3 organization.
The Dealer must record the name and location address of the business in the name
and address fields of the transaction report form and the date of the acquisition.

4. The item is acquired through an internet transaction. The Dealer must record on
the transaction report the seller’s email address or seller’s identification, the name
of the internet website that listed the item, and the date of the acquisition.

5. The item is acquired by the Dealer from a yard sale, garage sale, estate sale or
swap meet. The Dealer must record on the transaction report the physical address
of the sale location and the date of the acquisition. Items acquired under
Subsection A. must be held in compliance with the hold period requirement in
effect for the Dealer’s other acquisitions of regulated property.
B. A Dealer is not required to obtain the seller’s identification, photograph the
seller, record the seller’s thumbprint, or have the seller complete the Declaration of
Proof of Ownership if the Dealer complies with the remaining requirements in the
Administrative Rules and if the item is used, regulated property acquired from a
licensed business. The Dealer must keep a receipt for the item from the licensed
business that includes the licensed business’ name and a description of the item.
The receipt must be retained at the Dealer’s business location for one year or until
the item is sold, whichever is longer. The Dealer must record on the transaction
report the name and location address of the business in the name and address fields
of the transaction report form, and the date of the acquisition. The item does not
have to be held.

C. A Dealer is not required to make a copy of the acceptable identification

obtained from the seller, photograph the seller, or record the seller’s thumbprint if
the Dealer complies with the following requirements:
1. Conducts each and every acquisition of regulated property by either:
 not tendering payment to the seller for a minimum of 15 days after the
regulated property is delivered to the Dealer; or
 offering in-store credit that must be used for merchandise only and not
redeemed for cash; and
2. Holds each and every item of regulated property for a minimum of 15 days from
the date of acquisition; and
3. Complies with the remaining requirements set forth in the Administrative Rules;
and
4. Notifies the Director and the Chief of Police in writing that each and every
acquisition of regulated property will be conducted by not tendering payment to
the seller for a minimum of 15 days after the regulated property is delivered to the
Dealer.

D. A Dealer is not required to make a copy of the acceptable identification

obtained from the seller, photograph the seller, or record the seller’s thumbprint
when the Dealer acquires an item of regulated property on consignment if the
Dealer complies with the following requirements:
1. Does not tender payment to the consignor for a minimum of 15 days after the
regulated property is delivered to the Dealer;

2. Holds each and every item of consigned regulated property for a minimum of 15
days;
1. Complies with the remaining requirements in the Administrative Rules.

“So these are the limitation of life insurance

Corporation of India.
In every company has so many limitation but
LIC has limitation but
It is no -1 and trusty brand of India.”
So we can say that LIC is best service provider and trusty brand of
India.