CHAPTER 1- INTRODUCTION

1.1 History of Public Relations

1.2 Objectives of Public Relations

1.3 Functions of Public Relations Department

CHAPTER 1- INTRODUCTION

WHAT IS PUBLIC?
Public is a group of similar ideas, an assortment of persons having the same interests, problems, circumstances & goals. They vary in their forms & sizes they have a multitude of wants & desires. Each group has its own likes & dislikes. Group can be classified as: Employees form a group/public; employers form another group, etc. Other members of the public can be dealers, wholesalers, investors, etc. Each of these groups is a public & everyone tries to attract a district audience with its varied tools & techniques. A public may also be made up of a no. of individuals who are unorganized & hard to identify but who for widely varied reasons have a common interest in the matter at issue. Today, however, when modern means of common make vast number of people aware of controversial issues & common interests, publics tend to be large & impersonal. These publics involve people who are not known to each other & are widely distributed over the country, or even among a number of countries. The members of such public rarely meet each other face to face or have much direct communication. The impersonal but powerful publics are numerous in todays high complex society. But finally the public is any group of people who share common interest.

RELATIONS:It is the outcome of mutual understanding derived from the process of sharing of common interest where as relationship is the definite type of relation or interaction taking place between two individuals, group or departments. To understand any relationship, therefore it is necessary that one understands the wants of those involved. The term PR is also applied to the profession responsible for handling such assignments. Corporations, govt. agencies, politicians & entertainers are among these who use public relations. Their publics vary from employees & shareholders to an entire community or

members of the news media. The communication between an organization & its public ranges a simple news release to a sophisticated campaign featuring films, ads speeches & television appearances. Such communication is aimed at gaining the goodwill of the public. The basis of any effective PR campaign is public benefit. If an organization does not serve the needs of public, the public will not support it. PR experts help an organization learn what the public wants & then establish policies that reflect concern for publics interests.

PR GENERALLY IS PRACTICED THROUGH:Corporate PR dept: - In a corporate department, specialists handle corporate PR activities for only that company. PR Agencies: - In agencies specialists carry out PR activities for several companies Public Information Departments:Non-profit organizations like

colleges and Government agencies have public information departments that work to strengthen the image of the organization.

DEFINITIONS OF PR BY SOME RENOWNED PEOPLE:

Frank Jefkins: Public Relations means what it says- relations with the public. It is practically a self-defining term. It aims to create and maintain confidence. It is a system of communication to create goodwill. It produces that intangible quality or asset-goodwill, and earns credit for achievements. K.R.Balan: The discipline which brings out the rewards in generating mutual understanding and the risks involved in misunderstanding between individuals, groups, governments and nations in this restless world the shape and content of which tend to be rapidly changing. Editor of PR news: PR is the management function which evaluates public attitudes, identifies the policies & procedures, of an organization or an individual with pubic interests & plans & executes a program or action to earn public understanding and acceptance.

INTERPRETATION OF THE ABOVE DEFINITIONIt measures, evaluates & interprets the attitude of various related public. It assists management in defining objectives for increasing public understanding & acceptance of organizations products, plans, policies & personnel. It equates these objectives with the interests, needs & goals of various related public. It develops, executes & evaluates a program to earn public understanding & acceptance.

1.1 HISTORY OF PUBLIC RELATION

Public Relations as a term was first formally used by Thomas Jefferson in the year 1807, while drafting his seventh address to the congress delegates when he scratched out the words State Of Thought and wrote Public Relations instead. Informally Sir Walter Raleigh used it even earlier during the Land

Rehabilitation Movement, while persuading people from different parts of America to settle in the rural parts of Virginia. This was the first organized effort to win and mobilize public opinion. In India, the term of course gained importance later through the Public Relations Society of India (PRSI) in 1958.

ELEMENTS OF PUBLIC RELATIONS:

Human relations: It is getting along well with the word public both internally or externally. No person can work independently & everyone who works in an organization directly or indirectly depends on one another. Empathy: Empathy means feeling with the other person to analyze others point of view & is regarded as primary pre-requisite for a satisfying experience in a relationship where a certain degree of depth of understanding is expected.

Persuasion: There are 2 forms of interaction between individuals or groups a) Force or compulsion b) persuasion. If one party compels another to do something instead of perusing him this is called Despotism. It is against the principle of proper conduct sanctioned by society. A sense of human interest on the person who is being persuaded will understand & appreciate the cause & effect of this action. Dialogue: It is a conversation with purpose. It is not a bargain basement transaction but it is a low form of negotiation. Dialogue is a reasonable exchange of ideas bringing into view a new form of knowledge, the use of dialogue is for influencing behavior like selling goods or inspiring innovative ideas.

1.2 OBJECTIVES OF PUBLIC RELATIONS

The main objective of public relations is to establish good understanding by sharing a common problem or interest with the public. By public we here mean both an internal public and a public external to the organization. Mutual understanding can be established only by sharing a common interest, by communication and relations. However, the following are the broad objectives of public relations:

1. To promote mutual understanding. 2. To avoid the risk involved in misunderstanding. 3. To win friends. 4. To influence people. 5. To change the behavior and attitude of the public. 6. To enhance the patronage from the various sections. 7. To help in fund raising. 8. To persuade individuals, groups etc. 9. To connect misconceptions and clarify on criticism of its 7

Policies and practices. 10. To promote goodwill. 11. To create and maintain the image or reputation about the Company. 12. To forestall attack by the competitors or opponents. 13. To undertake a public relations education program. 14. To help the public to love life and work for better or for Worse without conditions. 15. To improve internal staff relations. 16. To liaise, counsel and advise. 17. To provide information about the activities of the company to the Press and writers. 18. To prepare and supply the public with information about the Organization like price, quality, export, employment, and Other Special features 19. To ascertain public opinion, conduct opinion research, and understand public attitudes on the organization, profession and practice. 20. To sponsor dealer and distributor relations schemes.

21. To undertake programmes like sales training courses for Retailers, wholesalers. 22. To establish press relations, publicity articles preparation, Press release, photographs 23. To communicate with the employees on their benefits, Accident prevention labour relations and collective Bargaining. 24. To undertake a campaign of public education about an Industry or profession and its contribution to the public. 25. To establish relations with federal and state legislators, Agencies.

1.3 FUNCTIONS OF PUBLIC RELATIONS DEPARTMENT

The functions to be performed by a public relations department may vary from organization to organization depending upon the nature and activities of a particular organization. However, certain standard functions have emerged as common in most balanced departments. They are discussed below: Policy: Public relations policy is required for every organization. A policy is a statement of guidelines to be followed in the company. The department has to develop and recommend corporate public relations policies. It has to contribute the public relations view point which helps in the formulation of decision. Its function is not merely to provide the policy mainly to the top management but also to the other sections and divisions. Publicity: Corporate publicity is necessary to interact with the public. The department has to undertake the development and issuance of announcements of corporate activities to external communication media. It has to handle inquiries from the press. It is a part of the functions of the department to develop and place promotional and publicity about the company as a whole or any of its units. Product Publicity: Corporate publicity is different from the product publicity. In this, focus is on the products and how to popularize the product. This includes both new products as well as existing ones. It includes the announcement of new products through the editorial channels of the communication media. The department has to develop and execute the promotional product publicity campaigns. Relations with the Government: Relations with the government cannot be overlooked. In all spheres of activities the government interferes, regulates, controls and supervises. It is necessary to maintain liaison with appropriate

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governmental departments. This liaison covers both the local level, state level and national level. Besides, governmental relations include: Advise action as needed Report trends in government affecting the company Help in preparing and directing corporate appearances before legislative hearings. Direct programmes designed to promote the companys point of view in regulatory matters. Community Relations: Community contacts should be planned. It is the performance and or coordination of corporate good neighbor activities, including compliance with environmental protection standards, fostering equal employment opportunity, cooperating in urban improvement programmes, and developing community understanding of a companys problems and needs. Shareholders relations: Relations with the corporate stock- holders are more important to attract public money. This takes the form of communication between the company and the shareholders in particular and also the investment community in general. It is necessary for the development and acceptance of the company among the investors by broadening the exposure of the companys policy and financial results in the investment community. This function includes preparation of annual reports, quarterly reports, dividend cheque inserts etc. It has to plan and stage the annual meetings of stockholders and appearances before meetings of security analysis. Promotion Programmes: Public relations promotion programmes should be formulated and implemented. This may broadly cover institutional advertising, public relations literature and special events. legislative or investigating bodies of

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Donations: A corporate donation policy should be developed for company contributions. Various aspects involved in this function are processing requests for donations, administering companys foundation, and the conduct of employees solicitations for approved drives. Employee Publications: The public relations department has to prepare and publish employee magazines, newspapers, bulletins, management communication etc Guest relations: The department must undertake guest reception activities. Coordinating activities. Conveying and Interpretation. Advisory function. Public relations education programme.

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CHAPTER 2-PUBLIC RELATION

2.1 The Need for Public Relations

2.2 Public Relations in Indian Economic

2.3 Scope of Public Relations

2.4 Mediums of Public Relations

2.5 Establishment of Relations with the Public

2.6 Professional Code-Public Relations code of Ethics

2.7 Planning Process of Public Relations

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2.1 THE NEED FOR PUBLIC RELATION

In recent decades human society has become so complicated and differentiated that the individual--- at least in the developed countries- is no longer able to live without adequate information. He certainly would not be able to live well without using the numerous possibilities of information offered him today. It is an indisputable fact that in this increasingly automated world man can no longer exist in complete isolation. In our age, technical developments have intensified the interdependence of all people to such an extent that the individual's capability of living is dependent, in many different ways, on society. That is, the individual lives on information he receives from society.

Four Fundamental Factors: The answer to the question, 'Why Public Relations?' is well explained with the help of the following paragraphs: 1. Communication: The means of communication have reached, technically, almost a stage of perfection. It is today financially possible for practically everybody- at least in the advanced nations-to receive'" information. The level of education of a wide circle of the population is rising rapidly and this ensures a steady increase in the capacity for receiving information which is guaranteed by the 'constitution.' Adequate information is, therefore, theoretically possible although it is by no means guaranteed in each individual case. 2. New Information Order: Whether we are correctly informed is far more difficult to answer. Many books, many discussions in academics in radio and television in India and abroad, and countless lectures, not excluding those in 'Information Society' and 'New Information Order' , as far as we are aware, a 14

correct reply is yet to be received. The only answer, according to the philosopher Karl Jaspers given in 1963, is "we in the Free World have the chance to share the responsibility and find ways of receiving the best possible information." 3. Information Load: Also called message load or quantity. The sceptic will, of course, draw our attention to the flood of information to which we are all exposed today. The proper reply to this is that this flood is largely without direction and that it is incomplete or inaccurate. Information must be prepared. Essential information must be separated from trivial matter, and the interest of the receiver must be aroused in the right direction. In the realization that ignorance, the inability to appreciate or recognize, superficial knowledge is extremely likely to result in dislikes, dissatisfaction and outright rejection with all their disastrous consequences. What we require is a fair means of information which eliminates existing or awakened suspicions, which builds up understanding, and creates confidence. This is what we call Public Relations. 4. Mutuality and Understanding: Going by the definition of public relations, the mutuality is based on interaction between consideration for public opinion, and the need of the communicator or organization to inform or establish contact. Understanding is created by providing insight into, and reporting on all essential matters. Confidence is cultivated by bringing the aim of the organization into harmony with the public interest, thus winning and maintaining goodwill among the general public. From all these facts, it is clear what the purpose of this' Activity in, for, and with, the public' is : To act and not to react; to create an atmosphere of confidence by an active information policy, the passive part of which consists in answering queries; to inform the public and exert influence towards the inside as a form of corporate and social counter-control to establish direct or in direct connections with the public, to fulfill a kind of interpreter's function towards the public and to control communicative reaction. The desired effect can only be achieved if the information or message is true and verifiable, clearly formulated and readily understandable, and is also in conformity with the daily practice of living and experiencing. 15

2.2 PUBLIC RELATIONS IN INDIAN ECONOMIC

The Houses of Tata, Mafatlal, Bajaj, Hindustan lever, Colgate Palmolive, Indian Oxygen, Goodyear, Hoechst, DCM, Godrej, TVS, ACC, Mahindra & Mahindra, Birlas and the JK Group of Kanpur, to name a few, have contributed a great deal to the economic development of India by faithful implementation of corporate relations programmes. Owing mainly to tile progressive and enlightened programmes and policies of these 'corporate citizens, abundant employment opportunities have been generated, and sizeable foreign exchange has also been earned. The following are .the elements involved in the Corporate (Public) Relations Policy which have helped these companies gain the esteem of the various segments of the Indian and overseas public. 1. Adoption to counseling based on an understanding of human behavior. 2. Analyzing future needs and predicting their consequences. 3. Research into public opinion, attitudes and expectations and advising on necessary action. 4.Establishing and maintaining two-way communication based on truth and full information. 5. Preventing conflict and misunderstandings. 6. Promoting mutual respect and social responsibility. 7. Harmonizing the private and public interests. 8. Promoting goodwill with staff, suppliers and customers. 9. Improving industrial relations. 10. Attracting good personnel and reducing labor turnover. 11. Promotion of products and service. 16

12. Maximizing profitability. 13. Projecting a 'Corporate Identity.' 14. Encouraging an interest in international affairs. 15. Promoting an understanding of democracy.

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2.3 SCOPE OF PUBLIC RELATIONS

There has been misconceived opinion about the scope or field of public relations activities. In lectures and articles published one is apt to gain the impression that public relations concern industry and commerce only. In such an instance it can only be said that one tends to overlook the fact that public relations, particularly in this decade, has entered all sectors of public life, not excluding religion, and that it how has a virtually unlimited field of application. The following examples demonstrate the wide field of public relations activities in industry and commerce. In our market economy there are information gaps which cannot be filled by the interaction of supply and demand via prices, costs or wages. This is when public relations activity steps in. It provides information on Planning technical and organizational developments, inventions and their potential utilization, or it issues at regular intervals company reports which provide a deeper insight into the structure of the corporation than the public can otherwise obtain. The relations activity is becoming increasingly necessary for the procurement of economically essential production factors. It makes it easier for corporations to tap the money-market or to finance their projects by issuing bonds or shares. It can also help them to find new personnel when necessary, and thus level out personnel fluctuation without reducing the desired working mobility. Finally it is easier for a corporation to acquire land from a community if the corporation cultivates public relations and endeavors to bring its own interests in harmony with those of the community. Public relations activity may support marketing. In its various forms it may contribute decisively to successful frictionless business activity. The principles of reciprocity underlying public relations is for the corporation an incentive to improve performance, because it helps the Corporation to overcome a difficult situation. Today the public relations profession has entered even in to the fields of hospitality, tourism, institutes, in education and to a variety of others.

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2.4 MEDIUMS OF PUBLIC RELATIONS

Letters
Letters which enable one person to reach another despite the Limitations of time that can cut down on personal visits and telephoning, Are among the most ancient and perhaps still the most important media of Mass communications. It has been said that letters are the only selling medium that, if taken away, would disrupt the entire modem business structure. They are sent out with every kind of enclosure; pamphlets and Leaflets, order blanks, samples, pictures, return post cards, and many others. The well-written letter has a major advantage over all other media it is directed personally to an individual. If it designed to please and flatter him rather than to irritate him as an invasion of his privacy, it commands his attention for a little while perhaps just long enough to motivate him to do what the writer wants him to do. Mail is a personal thing. A person likes to receive a letter written for him as well as addressed to him. He likes to express regard for him, offer him a better job, make a promise or enclose a cheque. When a publicist sends out a letter written for the client's benefit rather than for the recipient's, privacy is being presumed upon. The recipient may resent it. He may throw the letter away without reading it, or read it only to turn against the writer. Individually written and addressed letters have long constituted his backbone of international communication. Offset letters are being used in increasing volume to establish a direct speedy line of communication with specific publics- Letters are used on a regular or spot-news basis to reach employees, dealers, alumni, or workers in a fund-raising or legislative campaign.

The Telephone
A telephone call is more effective than a letter as a last minute reminder or an incitement to action. The telephone is good for getting a person to do something he should do although he might prefer not to such as attending a meeting. He can dodge a letter more easily than the personal commitment of a personal conversation. But for a technical or monetary commitment both parties will find it advisable to put it in writing to seal the telephone agreement. The secret of success in a large-scale telephone campaign is to Obtain reliable telephone operators - people 19

with pleasing telephone Personalities and the persistence to keep after each number until they actually reach the proper party and drive the message home. The maximum effect is obtained in a telephone drive when every prospect is reached over the phone by a personal acquaintance. The telephone being an instrument of human contact, courtesy and tact in its use are important in winning the understanding and goodwill of the person on the receiving end. The telephone personality of an organization and its employees is a vital aspect of its relations with the entire community, with many different publics, and with every individual connected by phone. A glaring telephone discourtesy is to have a secretary put through a call and then hold up the party being telephoned because the caller has become tied up with something else. It is better for people in business to make their own calls. People in business can win goodwill by answering their own telephones if possible; it is not pleasant telephone manners to have a secretary ask every caller 'Who's this? 'Who are you with? And whats the call about?

Word of Mouth
Word of mouth spreads like wild fire. If the subject and content are right, it can burst into spontaneous combustion just as an entire forest may suddenly be overrun by conflagration. Through word of mouth, rumor and innuendo may spread with extreme speed and spontaneity if the subject is close to the emotion of people. Feeling and thought must quickly take wing on word of mouth. In stimulating a word-of-mouth campaign. The important thing is to present subject matter of such interest as to cause people to repeat it to others. Word of mouth is perhaps the most subtle of publicity tools. It takes the form of gossip and slander at times if timely action is not taken to control it. Though it is the hardest to control, all our efforts need to be made. Its manipulation is not subject to cut-and dried mechanics, as is the case with so many publicity media and instruments. The things that contribute to word-of-mouth circulation are: 1. A spectacular and successful event or product. 2. A spectacular publicity or activating campaign. 3. A good catchword or slogan.

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4. Capitalizing on a mass trend or catchword.

Newsletter
The commercial field has long made good use of newsletters. These have a bright future. Newsletters tend to fit the times these days. People have fragmented interests. There are certain things they want to know a lot about, and other things they don't want to hear anything about. Newsletters have the advantage of speed. They are quick to read. The public relations use of newsletters is spreading rapidly into non-profit fields as well. Associations and professional societies particularly find the formal effective. Its use in politics and lobbying is burgeoning. With this format, users can reach constituents quickly on matters having both urgency and importance. The person-to-person nature invites reading.

Post Cards
Post cards are quick and easy to prepare, quick and easy for the Recipient to absorb, economical to mail to constituents and an effective adaptation of direct mail to reach large numbers of people with a message that can be punched home in a paragraph.In many campaigns, a large number of individuals can be stimulated to sign and then send post cards to their own friends and contacts. This personal touch has more influence with the recipient than would a communiqu from a stranger.

Public Address System

Public address systems at meetings, shows, gathering of employees or mass audiences of any kind make it possible mechanically to project he human voice before a large number of people. Mounted on a mini truck or other mobile auto, the public address system can be transported from place to place, presenting speakers and programmers as it goes, and reaching a widely distributed 21

audience. Sound tracks can also be rigged up at programmes in lieu of a permanently installed public address system. A portable bullhorn affords great mobility wherever amplified sound is needed. A recording makes it possible to 'capture' a speech or radio Programme and replay it by radio before an audience or over a public address system anywhere. Some recordings are made on the spot at special events. In other instances, special programmes are deliberately produced at are cording studio.

Charts
Charts are by far the most-used visual aid. A chart may be painted, printed or drawn. It must be large enough and simple enough to be seen and comprehended in the presentation setting.

Flannel Boards
Flannel Boards consist of aboard covered with felt. Sticky-backed visuals are placed on the surface, allowing a speaker to put some movement and flexibility into an otherwise static presentation.

Magnetic Boards
Magnetic Boards are much like flannel boards, except that magnets permit the use of heavier three dimensional visuals.

Video Cassette, Audio Cassette and Disc Recordings

These are useful in overcoming some of the difficulties of working with a diffuse and loose-knit organization. They assure that all concerned get exactly the same message with the desired visual and/or audio emphasis. Generally, these video cassettes, audio cassettes or disc communications,

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though carefully prepared, are modest in technique. Intentionally, they do not have the ambitious-or cost-associated with full scale productions.

Electro writers
An executive or a demonstrator can write his 'blackboard' notes across a long distance through a transmitter unit hooked up by telephone lines with a projector unit and screen.

Tele Lecture
This is a useful technique for making an audio/visual presentation at distance. With the help of the telephone company there is a hook-up from a speaker's office, a meeting or classroom, where visuals can be shown while the speaker is heard. Members of the audience can question the speaker through a two-way hook-up. This permits the speaker to 'appear' at many locations without the full time or expense of going there, and it permits remote groups to engage speakers they otherwise would not attract.

Facsimile
It sends between distant cities via telephone lines, exact copies of blueprints, layouts, and other visual materials- It is now used increasingly to transmit copy between the offices of an agency and clients or between an organization and a communications medium.

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2.5 ESTABLISHMENT OF RELATIONS WITH THE PUBLIC

As experience has shown, the world stands divided into three sets of people: 1. There are those who know you and like you. 2. There are those who know you and do not like you, and 3. There are those who neither know you nor care. The third are usually the large majority. Now the aim is: 1. To reach a position where those who know and like you stay that way; 2. Where those -.who know you and do not like you, change their opinion; 3. Those who neither know you nor care wish they could meet you and do business with you. The technique involved in the process is like that of the one followed by the fisherman who chooses his bait not by his own taste but by the taste of the fish.

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2.6 PROFESSIONAL CODE-PUBLIC RELATIONS CODE OF ETHICS

International Code of Ethics for Public Relations as adopted by the Public Relations Society of India at the 1st All India Public Relations Conference, New Delhi, April 21, 1968: Considering that all member-countries of the United Nations Organization have agreed to abide by its Charter which refines "its faith in fundamental human rights, in the dignity and worth of the human person" and that having regard to the very nature of their profession, Public Relations practitioners in these countries should undertake to ascertain and observe the principles set out in this Chapter. Considering that, apart from "right", human beings have not only physical or material needs but also intellectual, moral and social needs, and that their rights are of real benefits to them only in so far as needs are essentially met. Considering that, in the course of their professional duties and depending on how these duties are pardoned, Public Relations practitioners can substantially help to meet these intellectual, moral and social needs. And lastly, considering tell the use of techniques enabling them to come simultaneously into contact with millions of people gives Public Relations practitioners a power that has to be restrained by the observance of a strict moral code. On all these grounds the Public Relations Society of India hereby declares that it accepts, as its moral charter the principles of the following Code of Ethics, and that if, in the light of evidence submitted to the Society, a member of this Society should be found to have infringed this Code in the course of his professional duties, he will be deemed to be guilty of serious misconduct calling for an appropriate penalty. Accordingly, each Member of this Society Shall Endeavor 1. To contribute to the achievement of the moral and cultural conditions enabling human beings to reach their full stature and enjoy the indefeasible rights to which they are entitled under the "Universal Declaration of Human Rights". 2. To establish communication patterns and channels which, by fostering the free flow of

essential information, will make ach member of ' the group feel that he is being kept informed, and also give him an awareness of his own personal involvement and responsibility and of his solidarity with other members; 25

3. To conduct himself always and in all circumstances in such a manner as to deserve and secure the confidence of those with whom he come into contact; 4. To bear in mind that because of the relationship between his profession and the public, his conduct even in private will have an impact on the way which the profession as a whole is appraised. 5. To observe, in the course of his professional duties, the moral principles and rules of "Universal Declaration of Human Rights"; 6. To pay due regard to, and uphold, human dignity, and to recognize the right of each individual to judge for himself; 7. To establish the moral, psychological and intellectual conditions for dialogue in its true the

sense, and to roguish the right of the parties involved to start their case and express their views; 8. To act in all circumstances in such a manner as to take account of the respective interests of the parties involved; both the interests of the organization which he serves and the interests of the publics concerned; 9. To carry out his undertakings and commitments which shall always be so worded as to avoid any misunderstanding and to show loyalty and integrity in all circumstances so as to keep the confidence of his clients or employees, past or present and of all the publics that are affected by his action. shall refrain from; 10. Subordinating the truth to other requirements; 11. Circulating information which is not based on established and ascertainable facts; 12. Taking part in any venture or undertaking which is unethical or dishonest or 'capable of impairing human dignity and integrity; 13. Using any 'manipulative' methods or techniques designed to create subconscious motivations which the individual cannot control of his own free will and so cannot be held accountable for the action taken on them. 26

PERSONAL CREDO OF BATEMAN

(General Chairman of the Public Relations World Congress) August 11 to 14, 1976. 1. I believe that public relations are a profession which should concern itself not with the manipulation of the people, but with their continuing enlighten. 2. I believe that public relations practice should strive to elevate its audiences rather than to degrade them, and our communications should be addressed to reason judgment rather than to emotion and prejudice. 3. I believe that sound public relations comprises policies and deeds as well as words; that it must deal in truth rather than in Celestin; that it must seek to clarify the issues of our times rather than confuse them 4. While I may understand to present one point of view for public consideration, I believe in the inalienable right of those with opposing points of view to present their cases the also. For Ire cognize my right to speak can be assured only if guarantee exists for all, including those whose causes are unpopular. 5. I believe that the democratic process must prevail in the market place of ideas, as well as the political and economic affairs. 6. I believe that the public interest takes precedence over the interests of those I represent; and I conceive my function as being to assist in confirming the interests of those I represent 7. I recognize that the consequences of my actions are affected in the minds of men; and because the human mind has immeasurable potentials for good and for evil, I must approach my task

in reverence and as for the inviolable right of the individual to make his own judgments.

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2.7 PLANNING PROCESS OF PR

Public relations are not merely a process of getting stories and pictures into newspapers. It is much more. It has to be properly planned, orderly executed, and a number of details need careful attention. Public relations costs money, requires manpower, needs expertise, and consumes time and resources. So it should be well planned and executed in an orderly manner. PR Objectives The first step is to set out clearly the PR objectives before any campaign is launched. The publicist must have a clear idea as to what is intended to be achieved. His approach should be Positive and purposeful: Publics The next step is to decide who is the audience to be reached i.e. local, regional, national, or international. And apart from geographical area, it should be considered if any specialized audience or a section of the community or professional people is also to be reached. Message After deciding the public the company has to decide what message they want to pass through the campaign, what is it they want the people to know about them or what they want to tell or inform the public about. Strategy A strategy is a long term planning or the methods that a company adopts to make itself a successful company. For a PR campaign also strategies are required to be formed to so that they can create an impact or impression in the minds of the people; as well as they can build a fair and favorable image in the market. Tactics

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Along with a good strategy a company also needs to use some very good tactics for its campaign because there are competitors in the market and the company has to stand on top of all of them. Time Scale The public has to decide the time scale in which they will complete the campaign. They have to set a specific time. Also the decision about the commencement of campaign, duration, repetition, etc. is to be made well in time. Resources The publicist has also to think about the resources in terms of money and staff available to him. The campaign has to be planned keeping in view the resources which the publicist would be able to mobilize. Selection of Media/Resources Another point that requires a decision is about the media to be employed for the campaign: whether publicity is to be conducted with one medium or more than one or through multi-media. Evaluation After deciding upon the above things the publicist should evaluate the whole process to check whether everything is properly being done or not or whether they have to add anything else or not, etc. Review After evaluation again there should be a review of the entire thing to give it a final check. Analysis After the campaign there should be an analysis of the entire process sp that they will come to know whether the campaign was successful or not and if not then where it went wrong. If any draw backs are pointed out then again the whole process is repeated from the point of identifying the publics. 29

CHAPTER 3-LIC OF INDIA

3.1 Publics Important To LIC 3.2 Employee Relationship 3.3 Consumer Relations in LIC 3.4 Financial Relations in LIC 3.5 Community Relations in LIC 3.6 Aim of Corporate Relations Fulfilled At LIC 3.7 Corporate Policy of LIC on Public Relations 3.8 Public Relations Activities of L.I.C

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CHAPTER 3-LIC OF INDIA

LIC CORPORATE PROFILE

Life Insurance Corporation of India is a wholly owned undertaking of the Government of India. Life Insurance Corporation of India was established by an Act of Parliament on 1st September, 1956. Its Central Office is located in Mumbai. It also has seven zonal offices each located in Mumbai(Western Zone), New Delhi (Northern Zone), Kanpur (North-Central Zone), Bhopal (Central Zone), Chennai (Southern Zone), Hyderabad(South-Central Zone), and

Calcutta(Eastern Zone). It has a network of over 2000(2048) branches and more than nine lakh agents. Over 47 years, LIC has become a household name for providing security for a lifetime and is synonymous to life insurance in India. LIC ranks No.1 in the list of top 500 companies on the basis of Net Worth(Rs. 15, 47, 951 million) as well as Net Profit(2,66,277 million)- Dun & Bradstreet.

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OBJECTIVES OF PUBLIC RELATIONS IN LIC

The objectives of undertaking PR activities in LIC are manifold. In their Citizens Charter the company states that: TO THE COMMUNITY: We will Conduct all aspects of our business keeping in view the interests of the community and the national priorities; Provide insurance cover and financial security to every insurable segment including the socially and economically weaker sections of the society. TO OUR CUSTOMERS: We will provide them prompt, efficient and courteous service; act as trustees of their funds and invest them to their best advantage; build and maintain enduring relationship; keep them informed about our products and services etc. TO OUR WORKFORCE: We 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 their full potential; take steps to develop professional skills to enable them to handle their assignments more efficiently.

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ORGANIZATION AND STAFFING OF THE PUBLIC RELATIONS DEPARTMENT

LIC is purely a service-oriented organization. Moreover for transacting with their customers and business associates the company needs to develop and maintain cordial relations with various sections of the society and various other agencies i.e. their publics. This makes the role of PR in LIC even more important and vital. The company has a huge and active Public Relations Department which looks after the publicity of the various services offered, maintaining cordial relations with the various publics, publishing of journals, etc. and other PR activities. Budget: The management allocates Rs. 2-3 crores (approx.) annually to the PR Department. This amount is then further allocated to the various Zonal Offices which prepare their individual budgets according to their requirements. Staffing Of PR Department The Director-PR operates from the central office and has under him a Chief PRO. Each Zonal Office has a Zonal Manager-PR under whom is the Regional Manager-PR. Further under him is the Assistant Secretary who works with his Subordinate staff to fulfill the day-to-day activities of the PR Department. A PR plan is made at the beginning of each accounting year for which the Chairman appoints a PR Planning Committee. This committee comprises of the Director PR, Chief PRO, etc.

33

TASKS AND ACTIVITIES UNDER THE PURVIEW OF PR AT LIC

Of the various activities undertaken by Life Insurance Corporation some are listed below: Advertising Though countywide advertising is done by the marketing department, advertising locally in the various cities is handled by Zonal Offices. The advertising strategy is very well planned and is largely aimed at image building. Organize press conferences Press conferences are organized occasionally, generally when a new policy is released or when the annual financial results are announced or if something of significance has happened. Issue Press Releases Press Releases are issued both by the central office as well as the various zonal offices. Participate in public awareness programmes LIC has time and again joined itself with various community development and awareness programmes for the cause of rural development and infrastructure development.

34

3.1 PUBLICS IMPORTANT TO LIC

INTERNAL PUBLICS Employees Employees families Staff Unions

EXTERNAL PUBLICS Customers i.e. policy holders Prospective Customers Government Agencies Banks and Financial Institutions Statutory Bodies e.g. IRDA (Insurance Regulatory and Development Authority) Social Organizations Lawyers Local Administration Media General Public

35

RELATIONSHIP WITH SIGNIFICANT PUBLICS

Significant internal publics of the organization are its Employees Employees families; and the Staff unions.

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3.2 EMPLOYEE RELATIONS

In most Indian organizations, or companies, communications with employees have so far been given a back seat as compared to external communications. This has not been the case with LIC. It has through time realized the importance of its internal publics. LIC shares a good rapport with its employees. There are various staff unions to take care of the employees rights. The company shares a cordial and harmonious relationship with these unions. The companys focus, as regards its employees, is on providing: A healthy working environment; Employee friendly HRD policy; Job security; Training of Human resources; Fully utilizing its peoples talents and capabilities to promote skills and competencies and broaden their perspective; Handsome remuneration and perks. The company achieves the above objectives by a number of means. I. HOUSE JOURNALS

The corporation has a corporate house magazine YOGAKSHEMA which chronicles corporate and organizational events and pronouncements. The corporation also releases a quarterly newsletter JANKALYAN which serves the above

mentioned purpose as well as acknowledging employee achievements and produce merit lists of employee performance.

37

A news letter NILYAMDOT COM is also published by the corporation which is developed by the children of the LIC employees and is exclusively for children. II. INTERACTION The corporation also conducts open houses, meetings, seminars, workshops. This is done with the aim of facilitating two-way communication. II. REWARDS

Prizes are awarded to top performers at staff meetings and conferences. Rewards are given in the form of holiday, a family trip or some monetary gain.

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3.3 CONSUMER RELATIONS IN LIC

In consonance with the changes taking place in the insurance market, the corporation has undergone a transformation, simultaneously requiring a revamp in its image. Systematic and focused PR initiatives and widespread publicity have resulted in markedly improved visibility. The corporation has emerged with a much younger and sleeker image. A conscious effort was made to bring about a transformation in the corporate image. Through various campaigns, the corporation tried to depict the organization as one oriented towards the younger generation. The corporation advertising campaigns assisted the marketing strategies.

PR Activities for Consumer Relations The business of insurance is purely service which cannot be seen or held. Hence, the consumer relations activities of LIC concentrate on the customer public and building relations with prospective customer. The corporation has time and again made endeavors to reach out to the consumers, interact with them and keep them satisfied. The corporation tries to achieve its objective through a number of means Oral Communication Oral communication with the consumer public is the most effective means of presenting facts and creating understanding of the organizations policies and practices. Employee-Consumer Communication: The harmonious relationship that LIC has, through the years , built and maintained with its customers has only been possible due to its dedicated and committed team of Development Officers and scores of Insurance Agents throughout the country.

39

Press Conferences Press Conferences are organized to announce new appointments of top executives, introduction of new schemes, etc. It is very important in todays world because Now a days people are being aware about the appointment procedure of different companies and consumer are also getting educated day by day because of which it becomes necessary for the companies to keep press conferences. Audio-Visual Communication Television and Radio broadcasts are a basic medium of consumer communication. Now a-days it gaining a lot of importance. Television and Radio advertising The corporations advertisements reached nearly 25 crore people through over 50 campaigns. There were 79 hours of TV advertising and 408 hours of Radio advertising. Trans-slides The Corporation has placed trans-slides at strategic places, like Railway Stations and Airports, for maximum exposure to public at large. Printed Communication At LIC printed communications are used in conjunction with oral communication media. Press Release Press releases are frequently handed out to the media by the local PR department on behalf of the company. These generally comprise of any subject or issue concerning the company, containing information for policy holders or any item of news value to the media and its readers.

Journals and Publications 40

The corporation takes out its annual working results and several other publications from time to time to keep the public abreast of the happenings and achievements at LIC. Financial Results The annual financial report of the corporation is published in the National dailies and is also circulated amongst the shareholders to keep them informed. It also aims at attracting new investors. Booklets, Brochures and Pamphlets Booklets, Brochures and Pamphlets are generally taken out to inform its internal and external public about its various new schemes and act as an effective medium of print communication. Posters and Hoardings These tools are not only an advertising medium but also a very effective PR tool. LIC uses posters and hoardings to get quick public notice. Posters and hoardings are widely placed throughout the city at busy intersections like subways, railway stations, roadsides, bus shelters, etc. Other Amenities Provided by LIC Website The Corporations website www.licindia.com gives information about the corporations products, services, subsidiaries and addresses of branches and about premium payment through the internet. It also provides Press releases News sections Online policy status

Online Premium Payment

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LIC has tied up with HDFC Bank, ICICI Bank, UTI Bank, Bank of Punjab, Global Trust Bank, Corporation Bank, The Federal Bank Ltd., Citibank, and service providers like Bill Junction.com, timesofmoney.com to offer the online premium payment facility to its customers in select cities. Information Kiosks The corporation has installed online information kiosks at prominent places across the country. This provides information about the Products, services and policy status reports to the customers. Customer Contact Programme The purpose of such a campaign is to strengthen the relationship with the customers and to build bridges of understanding.

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3.4 FINANCIAL RELATIONS IN LIC

There are quite a few financial publics of LIC. Government Agencies Banks and Financial Institutions Statutory Bodies e.g. IRDA (Insurance Regulatory and Development Authority) Auditors To communicate with them and to keep them informed of the companys progress several activities are undertaken by the PR Dept. The Annual General Meeting The Annual Report The annual report is released annually to inform all publics of the companys working results. Chairmans Statement The chairmans statement is a comprehensive guide to what the company is and where it strives to be. It comprises of the corporations corporate vision, philosophy and policies, management contributions, future plans and a host of other such important aspects.

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3.5 COMMUNITY REALTIONS IN LIC

LIC regularly provides Health vans to various organizations across the country. The corporation also sponsors many sports events at the national level. Numerous publicity projects with a social purpose are undertaken at the zonal level. Recently the North Zone (Delhi) associated itself with the Perfect Health Mela to propagate the cause of good health.

3.6 AIM OF CORPORATE RELATIONS FULFILLED AT LIC

The aim of any organization is to create for itself: A. CORPORATE IDENTITY B. CORPORATE IMAGE C. CORPORATE CITIZEN A. CORPORATE IDENTITY Image Communicators/ Identity Creators Company Logo The companys logo has become synonymous with insurance and security in India. It helps to identify the company easily. Sign-up Line We Know India Better is the sign up line of LIC Company Publications The company has a host of publications that comprise of in-house journals, external newsletters, annual reports, etc. Citizens Charter 44

The company philosophy goes a long way in creation of harmonious relations with its publics. The citizens charter is a comprehensive statement of the companys philosophy towards its publics.

B. CORPORATE IMAGE The above listed image communicators have been very successful in creating a corporate image of LIC in the minds of the people over the years since its establishment. C. CORPORATE CITIZEN With all its PR initiatives and activities, since its establishment, LIC has proved to be a successful corporate citizen.

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3.7 CORPORATE POLICY OF LIC ON PUBLIC RELATIONS

Public Relations aims at building-up and maintaining sound, effective and productive relations with the public so as to help the organization to understand and interpret the environment as also help the public and the society at large to appreciate the performance and limitations of the organization. Public Relations has the responsibility to build and maintain two-way relations between the Public and the Organization at all levels.

The Public in the case of LIC includes: A. Levels of employees and agents. B. Customers. C. Government: Central, State & Local bodies. D. Media, Press, T.V., Radio & Agency-owners and Correspondents and E. Citizens at large. A clearly laid down Public Relations Policy, therefore, is essential to set the goals, indicate the strategies and give proper direction to all levels in the area of Public Relations.

Mission
Establish understanding and develop awareness of mutual aspirations of LIC and the Public.

Goals
1. Promote within the Corporation greater awareness of the changing environment and he need to align the corporate policy to the emerging situation.

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2. Help fashioning, within the constraints, its policies, programmes, practices and Products to meet the expectations of the Public. Help the public to appreciate the Performance and the limitations of LIC. 3. Make PR occupy the front seat in the organizational set-up.

Strategy
1. Develop excellent relations with the totality of the media-print, electronic and agency owners and reporters by regular exchange of information with them. 2. Establish relations-and develop understanding with the Govt. -Central, State & Local bodies through legislators and Govt. officials. 3. Develop full understanding with the workers-employees at all levels and agents on Organizational goals, policies, practices and programmes. 4. Develop an effective system of communication with the departments and operating units on the environment and on implementation of policies. 5. Build an atmosphere of goodwill and understanding inside and outside the organization leading .to better appreciation of the corporation's policies and performance. 6. Help to evolve effective machinery for quick and satisfactory redressal of grievances of the public. 7. Help to develop an image of LIC as a responsive organization, 8. Devise methods for opening up channels of two-way communication with various publics of the Corporation.

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Action Plan
1. Keeping the objectives, philosophy and the strategies in view, drawing-up annual PR plans by Branches, Divisions, Zones and Corporate Office. 2. Develop an effective system of periodical reviews of PR Plans at all levels - B.O., D.O., Z.O. and Corporate. 3. Develop streamlined methods of systematic dissemination of the information relevant to each of the publics. 4. Develop streamlined methods of receiving messages/feedbacks from the totality of the publics. 5. Formation of PR Advisory Committees at D.O., Z.O. and C.O.organize PR departments in the C.O., Z.O.s and D.O.s for realization of the goals, and develop a nucleus in branches also. 6. Organize events like inauguration of new B.O., D.O., Z.O. or any arm of the Corporation (diversification) etc. as public functions to project corporate image. 7. Actively participate in at least one important scheme in each of the States and in two or three national level schemes to help improve the quality of social life and establish the social relevance of LIC. 8. Develop a task-plan in respect of the above strategies.

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3.8 PUBLIC RELATIONS ACTIVITIES AT L.I.C.

PRESS CONFERENCE Press conference & interview are arranged periodically by all L.I.C. offices - i.e. , Central, Zonal, Divisional and Branch offices at the time of launching any new scheme and to inform about the policies , programmes and activities to the press so that it can be publicized. LIC WEB SITE LIC has its own web site Licindia.com which provides information about LIC and its subsidiaries and the products offered by them. USAGE OF INFORMATION TECHNOLOGY With a view to providing quick and accurate service its Customers LIC has introduced on-line service through front end terminals in 1993 branches and soon all our customers will be able to benefit by this. GREIVANCE REDRESSAL MACHINERY LIC has established elaborate Grievance Redressal machinery in order to deal with problems of customers. The grievance redressal cells are operative at all levels i.e. Branch, Divisional, Zonal and Corporate offices. Specially designated officers attend to policyholder's complaints. RALLY ORGANISATION LIC has organized a massive rally to pay homage martyrs of Kargil to provide moral support to the Indian army.

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PR AND PUBLICITY CONFERENCES PR and Publicity Conferences arranged at the central office in which the Chairman emphasized the need to reposition the organization the organization in the emerging cooperative scenario with the help of revised PR and publicity strategies because it was found out by a survey that the level of customer satisfaction is not very high. Claim review committees A claims review committee was being formed at the corporate level with a retired Judge as one of the members and it handles grievances arising out of repudiation of claims etc. Similar committees are also constituted at Zonal level. Press Releases Press releases regarding important news are released from time to time so that people are kept informed and they know about them. Customer Meets Periodical customer meets are organized at Divisional and Branch level to facilitate greater interaction with policyholders. Publicity Pavilion Publicity Pavilion are arranged to display information about PR and Publicity activities of LIC. Consumers Affair Committee A high profile committee has been constituted by the Central office with eminent persons from the consumers movement being its member to advice and guide LIC on maters concerning consumer interests. Exhibitions

50

LIC arranges its various schemes and exhibitions so that it can display its various schemes and plans. Citizens Charter The corporation has adopted a Citizens Charter wherein commitments have been made to its customers for higher standards in servicing. Free Phone Call Facility to the Policy Holders A unique facility of free phone call service is being provided to the policy holders of Mumbai city to enable them to have easy access to grievance redressal officers over the phone. Sponsorship LIC sponsors many events like chess tournaments table tennis tournaments for the employees and also for the general public. It has also sponsored a health camp organized by Masoom an organization of understanding and fraternity. Distribution of Dairies and Calendars LIC distributes dairies and calendars to its employees and also to the general public every year. Publicity Stalls Publicity stalls are been put up by LIC at different fairs and melas to publicize the corporation and its schemes and plans. Public Functions Inauguration of new offices helps in communication as well as in enhancing the image of the corporation. Advertisement in Newspaper and Magazine

51

Advertisement about LICs products, activities and policies is published in newspapers and magazines. House Magazine Yogkshema Yogkshema is the house magazine of LIC. It provides information about the corporation, its activities, policies an programs. Advertisement at Railway Station and Airport Posters and banners are set up at strategically important public places such as Airports, Railway stations, Bus terminals, shopping counters an at the reception counters of the business premises. This enables the policy holders to access information about LIC & its products etc. Insurance Week An insurance week was arranged by LIC through which people were exposed to various insurance schemes of LIC. Advertisement on Radio satellite channel Advertisement about LIC are frequently been telecast on radio and satellite channel. Advertisement at Kumbh Mela LIC has also advertised about its products and the corporation even in Kumbh Mela. Training Programmes Training programmes are arranged by LIC for its employees so that they can be trained for the purpose of public relation activities. Meetings Meetings of Development officers are arranged by LIC to train their employees for public relation activities. 52

CHAPTER 4 CONCLUSION

Public Relation came into existence by the belief that if we do something good for people then only the people will say well about the organization. Today's is an age of competition. And to remain firm in the competition depends on how efficiently the Organization manages its PR & projects the company's image. Public Relation will not sell goods and Services but it is bound to create an atmosphere which will make the free enterprise, a responsible enterprise. Public Relations, in fact will prove to be the most effective tool for communicating with the People who are still remote from industry for convincing them that corporate objectives are ultimately in the interest of the public. The PR Mantra has now become pervasive. Neither an individual nor the organization & not even the government or a UN body can thrive or sustain in this age without effectively strategizing PR.

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CHAPTER 5 CASE STUDY

LIFE INSURANCE CORPORATION OF INDIA VS. MANMATH KUMAR AICH

The brief facts of the case are that the insured had an insurance policy commencing from 20-09-98. The complaint was the nominee under the policy and the dispute arose regarding the date of the death of the insured. The contention of the insurer was that as per the complainants letter his father died on 14-05-92 whereas the complainant/son of the deceased insured contended that the date of death was 14-05-89. The district forum accepted the case of the insurer and held that the policy had lapsed when the insured died and directed for repayment of the premium amount only. In appeal by the complainant the state commission observed that from the perusal of the document on the record it was clear that the date of death mentioned by the complainant was 14-05-89. That apart even the death certificate which is public record issued by the health officer indicated the date of death as 14-05-89. The insurer also admitted to having received two half yearly premiums September 88 and March 89. And if they received March 89 premium apparently if it is quarterly premium then the next premium would have been due in June 89. Therefore in either case the death of the policyholder having been accepted as 14-05-89 the policy could not have said to be lapsed. HELD: the appeal of LIC was dismissed and the entire amount along the bonus, interest etc. are paid to the complainant.
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CHAPTER 6 SURVEY REPORT QUESTIONNAIR

NAME: _____________________________________________________ OCCUPATION: ______________________________________________ CONTACT DETAIL:-__________________________________ Q.1) Are you aware of LIC and its products? A) Yes B) Not about its products C) No

Q.2) Do you have any policy of LIC? A) Yes B) No

Q.3) How many policies do you have in LIC? A) Only 1 B) 2-3 C) None

Q.4) Do you think LIC is maintaining good relations with its customers? A) Yes B) No

Q.5) Do you like services of agents of LIC? A) Yes B) No

Q.6) Do you like advertisement of LIC?

A) Yes

B) No

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Q.7) With which facilities of insurance are you most satisfied?

A) Life insurance

B) Health insurance

C) Property insurance

D) other

Q.8) Do you think LIC is costlier than any company? A) Yes B) No C) Cant say

Q.9) Whether you are facing any problems with LIC policy? A) Yes B) No C) Cant say

Q.10) Do you think LIC have appropriate marketing? C) Cant say

A) Yes

B) No

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ANALYSIS
Q.1) Are you aware of LIC and its products? A) Yes
Yes

B) Not about its products

70%

C) No

Yes

Not about its products

No

Not about its products 22% No 8%

22%

8%

70%
From the graph we can see that: Maximum people are aware of LIC products. (70%) There are 22% people who are aware of LIC but not about its products. Only 8% people are not aware of LIC.

Q.2) Do you have any policy of LIC?

Yes No

A) Yes
Yes No

B) No
52% 48%

From the graph we can see that: 52% people have LIC policy. There are 48% people who do not have any LIC policy.

48%

52%

57

Only 1

2~3

None

Q.3) How many policies do you have in LIC? A) Only 1 B) 2-3 C) None
40 12 48

48% 12%

40%

Only 1 2-3 None

From the graph we can see that: There are 40% people who have only 1 policy of LIC. Only 12% people have 2-3 policy of LIC. Maximum people do not have any LIC policy.(48%)

Q.4) Do you think LIC is maintaining good relations with its customers? A) Yes
Yes No
Yes No

B) No
78% 22%

22%
78%

From the graph we can see that: A maximum person feels that LIC is maintaining good relations with its customers. (78%) There are only 22% people who feel that LIC is not maintaining good relations with its customers.

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Q.5) Do you like services of agents of LIC? A) Yes B) No

70% 30%

Yes

No

Yes No

30%

From the graph we can see that: 70% people like services of agents of LIC. There are 30% people who do not like services of LIC agents.

70%

Q.6) Do you like advertisement of LIC?

Yes No

A) Yes
Yes No

B) No
75% 25%

25%

From the graph we can see that: There are 75% people who like advertisement of LIC. 26% people do not like advertisement of LIC.

75%

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Q.7) With which facilities of insurance are you most satisfied? A) Life insurance B) Health insurance C) Property insurance D) other
48 22 18 12

Life insurance Health insurance Property insurance other

Life insurance Property insurance

Health insurance other

12% From the graph we can see that: There are 48% people who are satisfied with Life insurance. 22% people are satisfied with Health insurance. There are 18% people who are satisfied with Property insurance. 12% people are satisfied with other policy. 18%

48%
22%

Q.8) Do you think LIC is costlier than any company? A) Yes B) No C) Cant say
Yes No Cant say 32% 46% 22%
Yes No Can't say

22%

32%

From the graph we can see that: There are 32% person who thinks that LIC is more costly than other company. Maximum people says that LIC is not costly than any company.

46%

60

Only 22% people cant say about this.

Q.9) Whether you are facing any problems with LIC policy?
Yes No Can't say

A) Yes
Yes No

B) No C) Cant say
31% 56% 13%

13%

Cant say

31%

It can very easily be depicted from the graph that in our graph there are: 31% people who are facing some problems with LIC policy. Maximum people do not face any kind of problem with LIC policy. (56%) Rest 13% cant say about it.

56%

Q.10) Do you think LIC have appropriate marketing? A) Yes

Yes No Cant say

B) No C) Cant say
66% 21% 13%

Yes

No

Can't say

13% 21% 66%

It can very easily be depicted from the graph that in our graph there are: 66% people who think LIC have appropriate marketing. There is 21% person who thinks that now LIC do not have appropriate marketing. Rest 13% cant say about it.

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CHAPTER 7 ANNEXURE-1 (ARTICLES)

India

LIC invested crores in tobacco firms: NGO

TNN Oct 14, 2011, 02.17AM IST

MUMBAI: Should government-run companies invest in tobacco firms? This is the question that Voices of Tobacco Victims (VoTV), an NGO working for cancer patients, has raised after its recent query under the RTI Act revealed that the Life Insurance Corporation of India has invested up to Rs 3,500 crore in various tobacco companies. "It's the greatest irony that the government spends Rs 10,000 crore on treatment of tobacco-related illnesses while investing Rs 3,500 crore in the industry causing it," said Dr Pankaj Chaturvedi, a senior cancer surgeon with Tata Memorial Hospital who is associated with VoTV.

http://articles.timesofindia.indiatimes.com/2011-10-14/india/30279058_1_tobacco-firms-antitobacco-tobacco-products

India

LIC's investment in markets may cross Rs 2-lakh crore this year

Deeptha Rajkumar, ET Bureau Jun 19, 2010, 07.31am IST
MUMBAI: Life Insurance Corporation of India's (LIC) investments in shares this financial year may exceed last year's net figure of Rs 61,000 crore, a senior official with the firm told ET. With a record number of public issues set to hit the market this year, the insurance behemoth is thinking of increasing exposure to both the primary and secondary markets. "Our gross investments last year were Rs 1,93,000 crore; this year, they should cross Rs 2-lakh crore. The investments will be across government securities, state and corporate debt, project loan infrastructure, equity," said N Mohanraj, ED-investments at LIC.

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May 31, 2011

LIC launches new health insurance plan,

AGENCIES

Posted: Tuesday, May 31, 2011 at 2047 hrs IST Tags: Life Insurance

Nasik: Life Insurance Corporation of India (LIC) is launching its new non-linked health insurance plan Jeevan Arogya from tomorrow offering comprehensive hospitalisation benefits for the family of the principal insured. The feature of this plan is that it offers to cover parents and in-laws of the principal insured besides spouse and minor children, Senior Divisional Manager Sudhakar Joshi told reporters. He said this is a defined benefit policy meaning that benefits are fixed in terms of policy conditions and are payable irrespective of the actual amount spent on treatment. Besides, benefits are payable regardless of the life insured getting reimbursement under any other scheme from his or her employer or any other insurance company.

Mar 01, 2012

LIC of India launches 'Jeevan Vriddhi'

AGENCIES

Posted: Thursday, Mar 01, 2012 at 1945 hrs IST Tags: Jeevan Vriddhi LIC | Life Insurance Corporation Of India

New Delhi: The Life Insurance Corporation of India (LIC) today launched a new plan 'Jeevan Vriddhi, eyeing a market that consists of working youngsters and parents of children who want to script a brighter future for their progeny. This is a single premium insurance plan where the risk cover is 5 times of premium chosen by the customer. The plan offers what is termed as 'guaranteed' returns on maturity. The plan is an insurance/returns combo and would be available for a limited period only - up to a maximum of 120 days.

63

The minimum sum assured is Rs 1.50 lakh while there is no upper limit. The minimum premium under the policy is Rs 30,000. The policy does offer high liquidity through policy loan after just one year. In the event of death during the currency of the policy, the basic sum assured will be payable. On maturity, the guaranteed maturity sum assured (which will.. depend on the single premium payable and the age at entry of the life to be assured) along with loyalty addition, if any shall be payable. The minimum age at entry for the plan is 8 years while the maximum is 50 years. The term of the policy is fixed at 10 years. The working young population who want to save for the future and parents who want to save money for funding their childs higher education can check this plan out for suitability. The plan offers a tax sop as it is eligible for benefits on the premium under section 80C.

64