MARKETING & SERVICES OF LIFE INSURANCE CORPORATION OF INDIA

TERM PAPER (2011-2014) AMITY UNIVERSITY, NOIDA

SUBMITTED TO MRS. NEHA PURI (Faculty Guide ) YEAR

SUBMITTED BY VIVEK KUMAR SHARMA B.COM (HONS)-2ND Enr. No. A3104611096

DECLARATION

hereby

declare

that

the

project

report

entitled

MARKETING & SERVICES OF LIC CORPORATION OF INDIA Submitted to AMITY UNIVERSITY, India, is my original work and not submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes. I would like to category mention that all the information that have been collected, analyzed and known for the project is entirely authentic possession of mine

(VIVEK

KUMAR

SHARMA)

ACKNOWLEDGEMENT
I acknowledge the sincere assistance provided to me from several rather unexpected quarters during the course of execution of this study. It would be a mammoth task to place on record my gratitude to each and every one of them but a whole hearted attempt would be made nevertheless, least I be branded ungrateful. Without the co-operation of the management and employees this project study would not have materialized.

TABLE OF CONTENTS

1 Executive Summary 2 Objectives 3 Introduction 4 Company Profile i. Name of the organization ii. Head office iii. Vision and mission
5. Trade Policies

i. ii.

Main Business Ancillary Business

6. Competitors 7. Promoters 8. Vendors

9. Research and Development Activities 10. Key Staff 11. 12. Marketing Policies Comparative Analysis

13. Performance of LIC in Rural Areas 14. Attractive Features of the Company 15. Govt. Policies Related To the Business 16. 17. 18. Findings Bibliography Questionnaire

EXECUTIVE SUMMARY
Life insurance in India made its debut well over 100 years ago. In our country, which is one of the most populated in the world, the prominence of insurance is not as widely understood, as it ought to be. What follows is an attempt to acquaint readers with some of the concepts of life insurance, with special reference to LIC. Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. The contract is valid for payment of the insured amount during - The date of maturity, Specified dates at periodic intervals and Unfortunate death, if it occurs earlier. Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. The project undertaken is to understand the marketing strategy of Life Insurance Corporation of India along with the information technology used by LICI to improve the marketing process. Marketing of life insurance is the marketing of intangible product so it depends upon the need of the customers. Marketing does not begin after the buyer expresses his need. It begins much earlier. Marketing precisely means creating a need first and triggering the need into a want. That means that the success of the company is fully depends upon the marketing management of the company. Marketing management is creating a revolution in marketing of products and services providing to the market and consumers of the organization throughout the market. Marketing management is a powerful tool for achieving organizational goals and gaining competitive advantage. Summer training project goal is to help students become effective managers in todays competitive, global environment. The fundamental unit of work in all organizations is processes; the focus of the project is on the different marketing processes in the field of marketing of the organization. The marketing strategy adopted by the company is fully responsible for the

success of the company. The strategy applied today will capture the market share tomorrow. In the summer training I have to study the marketing strategy of Life Insurance Corporation of India. During the training period I meet the different heads of the marketing division and also the staff to know the marketing strategy adopted by LICI. The topic of the project given to me was, Marketing Strategy of Life Insurance Corporation of India with special reference to information technology . Daily I have to go through the

Ethernet of LICI to their information technology better. LIC has been one of the pioneering organizations in India who introduced the leverage of Information Technology in servicing and in their business. Data pertaining to almost 10 crore policies is being held on computers in LIC, I have tried to put my maximum effort to make the training program up to its best level.

OBJECTIVES
OBJECTIVE OF THE PROJECT:The main objective of the project is: Study of marketing &services of LICI, different policies of the company for the marketing process. The project has some other objectives also along with the main objectives.

To know the marketing system of the organization. To find out other points related to marketing of LIC. To know the mobilization of people's savings by making insurancelinked savings adequately attractive. To study the market of investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole. How to deal with customer to conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. How to involve all people working in the Corporation to the best of their capability in furthering the interests of the business.

INTRODUCTION
Indian Economy is growing consistently. The government is recognizing the need to improve infrastructure and has taken steps towards public-private partnership. If the infrastructure does not improve, this could slow down progress in the coming years. The country needs huge investments in building power plants, roads and ports to keep pace with the demand of rapidly growing economy. Insurance industry has a major role to play as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability. It also nurtures the public-private partnership. Insurance of large capital outlays have several risks. These include risks associated with project implementation, risk from disasters, financial risks etc. Without covering these risks it will be difficult for financial institutions to commit funds. Insurance takes care of this. Insurance industry also has a great social significance. It is associated with disasters, calamity etc. Insurance companies generate funds out of insurance premium collected and help in uplifting the economy. It also has potential of employment opportunities. Definitely the insurance industry is moving ahead. The main elements in the reform in in the insurance sector was the process of opening up of the insurance industry in 2000 with foreign direct investment permitted up to 26 percent of equity. With the change, global insurers have rushed into the country to capture the market.

COMPANY PROFILE
Name of the company: Life Insurance Corporation of India. Head Office: Yogakshema Jeevan Bima Marg, P.B.No. 19953. Mumbai - 400021 Organizational Structure till today: 1 Central office - at Mumbai 2 Zonal offices - 8 3 Divisional offices - 106 4 City Branches 790 5 Moffussill Branches 1258 6 Total Branches - 2048 7 Branches in Centers 1363 8 Satellite Sampark office 112

Objectives of LICI: The establishing objectives of the Corporation are a) Spread Life insurance widely and in particular to the rural areas and 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. b) Maximize mobilization of peoples saving by making insurance linked savings adequate attractive. c) Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it hold in trust, without losing sight of the interest of the community as a whole; the fund to be deployed to the best advantage of the investor as well as the community as a whole, keeping in view national priorities and obligations of attractive return. d) Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. e) Act as trustees of the insured public in their individual and collective capacities. f) Meet the various life insurance needs of the community that would arise in the changing social and economic environment. g) Involve all people in the Corporation to the best of their capabilities in furthering the interest of the insured public by providing efficient service with courtesy. h) Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of corporate objectives.

VISION and MISSION Statement:

VISION OF THE CORPORATION: A transnational competitive financial conglomerate of significant to societies and Pride of India. MISSION OF THE CORPORATION: Ensure and enhance the quality of life of people through financial security by providing products and services of aspired attributes with the competitive returns, and by rendering resources for economic development.

TRADE POLICIES

MAIN BUSINESS
Main business of Life Insurance Corporation of India is selling, administering and servicing of its various life insurance products which are unique, complex and contingent financial products. Life insurance products are contingent financial assets to meet the financial risk of untimely death. Life insurance are unique, because all the financial products pay only the time of maturity, but life insurance pays the event of contingency i.e. death of the life assured. They are complex because they pays in the event of contingency covered under the contract, offer different premium payment modes so also having other options like loan, surrender, conversion etc. Keeping all the above factors in mind, LICI had taken the population age group 0-60 as usual insurable population in the recent past to tape the potentials. Through in our countrys practical age range for insurable population actually narrow down to age group 25-50. Sex-wise, work participation rate of female is low. Further there are other negative factors like various social customer, age old mental back etc. inhabiting woman for which female insurance potential. LICI lunched Jeevan Bharti plan exclusively for woman only to tape the female insurable population. Indian rural insurable population is around 74%. The rural population also takes a huge part of the growth and development of the trading policies of the organization. The main business of Life Insurance Corporation of India is related to the protection of the economic values of a human life. Insurance companies are called the insurers. The business is to a) Bring together persons with the common insurance interest (sharing of risk. b) Collect the share or contribution in the form of premium from all of them. c) Pay out the compensation in the form of claim to those who suffer. There are responsibilities e.g. education, marriage of children, start in a life for sons, a roof over the heads. On the other hand, there will be additional responsibilities towards parents, brothers and sisters. A family man i.e. head of the family faces the risks to his financial position through a) Physical and mental disability because of diseases and accidents. b) Retirement from active work life. c) The imponalerable risks viz. death. Death is certain, but time is uncertain. An untimely and premature death of

a bread earner brings economic disaster to the dependent family. emotional loss is left apart; the family suffers from the financial loss. There are three ways in which these problems can be tackled a) Social security schemes of the govt. b) Group effort. c) Individual efforts.

It is

A life insurance policy is a contract between two parties, insurer and insured for which mutually agreed upon premium has been paid by the insured within a laid down time framework and the losses are met by the insurer. With other essentials of valid contract, principle of insurable interest and principle of utmost good faith are two additional essentials. Based on above essentials, Life Insurance Corporation of India has crossed its fifty second years transacting life insurance business in India with its growth and development with excellent performance years after years and today it has a strong base in Indian economy. Life Insurance Corporation of India has a huge fund held in trust for the benefits of its policyholders and for the benefits of the community; it has invested both in Government and public sector, thereby benefiting the society at large. While policies for children have been offered almost from the beginning, offering special plans for female child, for example, Jeevan Sukanya, speaks the volume of the growing responsiveness of the corporation to the social needs. Favorable mortality experience has also been noted in the case of children. Earlier, the risk on the life of the children normally used to began from the age 18 or 21. LIC has now begun to accept such risk on the childrens life at the age of seven. In addition, in most permanent policies, there is a guaranteed cash value accumulating and other non-forfeiture benefits which represent the policyholders equity or ownership right in the policy. With term insurance there is usually no cash value build up or other guaranteed benefits. The insured is buying pure life insurance protection for a stipulated period. However, there are plans which stand in a twilight zone like Jeevan Sandesh. LIC at one time offered a pure savings plan e.g. pure endowment plan, which was later on withdrawn as it had no insurance element in it. The various types of plans: a) Term assurance plan: i. the two year temporary assurance policy

ii. the mortgage redemption policy iii. the convertible term assurance policy b) Permanent assurance plans: iv. whole life policy v. limited payment whole life policy vi. limited payment life policies with single premium vii. the convertible whole life policy c) Endowment policy: viii. marriage endowment/ education annuity ix. the endowment assurance with limited payment x. double endowment(without profit) xi. key man insurance xii. endowment policy for persons having irregular income xiii. plans for persons having short span of very high income life d) Money back policy e) Double death benefit policy f) Triple death benefit plan g) Plan for housing needs- double death benefit h) Joint life policy i) Children assurance policy j) Plan for female child k) Children money back plan without profit l) Plan for handicapped child m) Annuity policy xiv. immediate annuity policy xv. deferred annuity xvi. the immediate annuity certain xvii. the deferred annuity certain n) Pension plan. Name of the various types of plans issued by LICI: Child plans: 1 Child Future Plan 2 CDA Endowment Vesting At 21 3 CDA Endowment Vesting At 18 4 Jeevan Kishore 5 Child Career Plan 6 Komal Jeevan 7 Marriage 8 Endowment Educational Annuity Plan 9 Jeevan Chhaya 10 Jeevan Anurag Plan for handicapped child:

1 Jeevan Vishwas 2 Jeevan Aadhar Endowment assurance plan: 1 The Endowment Assurance Policy-Limited Payment 2 Jeevan Anand 3 Jeevan Mitra (Double Cover Endowment Plan) 4 Jeevan Mitra (Triple Cover Endowment Plan) 5 The Endowment Assurance Policy 6 Jeevan Amrit 7 New Janaraksha Plan Plans for high worth individuals: 1 Jeevan Pramukh 2 Jeevan Shree-I Money back plans: 1 The Money Back Policy-20 Years 2 The Money Back Policy-25 Years 3 Jeevan Surabhi-15 Years 4 Bima Bachat 5 Jeevan Rekha (closed for sale) 6 Jeevan Surabhi-20 Years Special money back plan for woman: 1 Jeevan Bharati Whole life plans: 1 The Whole Life Policy 2 The Whole Life Policy- Single Premium 3 The Whole Life Policy- Limited Payment 4 Jeevan Rekha (closed for sale) 5 Jeevan Tarang 6 Jeevan Anand Term assurance plan: 1 Amulya Jeevan 2 The Convertible Term Assurance Policy 3 Anmol Jeevan-I 4 Two Year Temporary Assurance Policy Pension plan: 1 Jeevan Nidhi 2 Future Plus (closed for sale) 3 Jeevan Akshay-III (closed for sale)

4 New Jeevan Suraksha-I 5 Jeevan Akshay-V 6 New Jeevan Dhara-I 7 Jeevan Akshay-IV (closed for sale) Unit linked plan: 1 Money Plus 2 Future Plus (closed for sale) 3 Bima Plus (closed for sale) 4 Market Plus 5 Jeevan Plus (closed for sale) Golden jubilee plans: 1 New Bima Gold 2 Bima Gold (closed for sale Special plan: 1 Jeevan Madhur 2 Jeevan Saral 3 Bima Nivesh 2005 4 Group Insurance Scheme in Lieu Of EDLI 5 Gratuity Plus 6 Group Gratuity Scheme 7 Group Leave Encashment Scheme 8 Group Savings Linked Insurance Scheme 9 Group Super Annotation Scheme Social security scheme: 1 Shiksha Sahayog Yojana 2 JanaShree Bima Yojana (JBY)

ANCILLARY BUSINESS
In recent years, Life Insurance Corporation of India has been making an impact beyond the field of insurance. LIC Housing Finance Ltd. and LIC Mutual Fund are two such ventures undertaken by the corporation to cater to the diverse needs of the customers.

New product:
LIC Mutual Fund launched the LICMF INDEX FUND on 14/11/2002. This latest offering is tailored specifically bearing in mind investors who wish to earn

high returns from quality stock market investments, by owning diverse index scrip. The scheme offers investors to choose between 3 different plans viz. a) SENSEX Plan b) NIFTY Plan c) SENSEX Advantage Plan. The scheme has been re-opened for fresh sales from 05/12/2002 after a receiving an encouraging response from retail investors during the IPO.

Jeevan Bima Sahayog Asset Management Company Ltd. (JBSAMC) was formed in April, 1994 to carry on the investment
management and allied functions of the fund. The marketing set up of JBSAMC includes around 17000 agents, 28 chief agents and 7 area offices besides their office. LICMFL has appointed Stock Holding Corporation of India to act as custodian for its securities and 5 Registrars to maintain unit holders records.

COMPETITORS

There are various insurance companies in the present market. So, LICI always faced the competition from those competitors. Some of the competitors of L.I.C.I. are-

1ICICI PRUDENTIAL. 2MAX NEW YORK. 3BAJAJ ALLIANZ. 4ING VYASYA. 5MET LIFE. 6AVIVA (DABUR AND CGU). 7RELIANCE LIFE. 8HDFC STANDARD LIFE. 9OM KOTAK MAHINDRA. 10BIRLA SUN LIFE. 11TATA AIG. 12SBI LIFE. 13SAHARA INDIA. 14SHRIRAM. 15BHARTI AXA LIFE.

================

PROMOTERS OF LIFE INSURANCE CORPORATION OF INDIA

Each company follows its own strategy for the promotion its own image, its product and market share. While it is yet to be seen the various strategies that the insurance companies shall be following when they start functioning, it can safely be assumed that while printed media shall be holding its importance, the electronic media shall acquire more and more importance. With the spread of TV to the remotest part of the rural area, its hold over the public shall be unmatched. While every company does its best to take recourse to the various publicity media, it is its performance which shall speak louder than words. One satisfied policyholder is worth thousand pamphlets distributed. LICI in spite of its monopoly status has been aware of

its market responsibility. The vast potential of the insurance market of the country is well appreciated. For reaching out the remotest part, it has consciously opened branches in the rural areas, appointed its field personnel, DO, and agents in such areas, empowered the branches to perform all function for speedy disposal.

Vendors
The Life Insurance Corporation of India has the vendors in both marketing and servicing from time to time since its inception, with the market research and business intelligences. LICI has developed both in marketing and servicing with increase productivity to its credit every year. The main source of procurement of new business is the agency force with license in their hands to act on behalf of LICI. So, in the since agents may be called the vendor for selling its wide range of varied products. Today, LIC has more than 11 lacs of agents through out the length and breath of the country. With the regulatory regime new vendors came to join are the alternate channels like bank assurance and corporate agents. The corporate agents and the bank outlet have open new avenues in increase productivity of LICIs new business during last 6/7 years. Such type of distribution

channels have not only helped LICI, but to other private companies also whom the respective companies has appointed as their alternate channels and the assurance partners. Also the brokers are appointed by the respective companies to act on behalf of the companies. Under Allahabad Divisional office there are almost eight brokers, eighteen corporate agents and forty-two bank outlets comprising of Central Bank of India, UCO Bank etc.

RESEARCH AND DEVELOPMENT

HELPING SHAPE THE FUTURE INDIA
The name Life Insurance Corporation of India spells trust in the financial world. The corporation is renowned for its high standards in investment practices, product innovation, and customer services and underwriting. LICI today is the largest insurer in the world in the assets based of 438079 crores (around $ 100 billion). LICI has over 17 crores policy and settles the highest numbers of claims, 1.15 crores in a year. LICIs investment combines financial pragmatism with a concern for improving the countrys infrastructure and quality of life. Together with the Govt. of India, LICI has been instrumental in initiating various projects that have contributed to the nation building. LICI today is a modern, vibrant organization. In the field of information technology, business process re-engineering, LICI

has the credit of opening more and more satellite sampark offices and enterprise web portal. The implementation of Enterprise Portal Solution (EPS), the web based system has enabled.

PRODUCT INNOVATION
LICIs product over the years have own many accolades for the innovation. LICI has taken challenge to design products and marketing strategies which captures the imagination of the agents and customers. In todays competitive dynamic market, customer chooses the products to suit his changing needs and financial status. According to suit of the top lyre customers and equally to take care of the bottom of the pyramid, LICI has prioritized to develop separate brands of all these years. After Globalization and the rapid changes in the financial market, LICI has started a continual market research and alert market feedback mechanism accompanied by state of art actuarial packages and services to ensure a stream of products as per appetite of the market. LICI s someof the innovative products are Jeevan Shree, Jeevan Promukh, Bima Nibesh etc. where as Bima Kiran, Jeevan Rekha, New Jana Raksha, New Bima Gold etc. are innovative for the customers of bottom lyre. Apart from these, micro insurance products are for the down trodden masses. The consumers behavior has been changing with the changing economy. Consumerism has overwhelming influent over the buyers of the new generations. Further, due to killer competitions in the market, the needs and awareness of the insurance is growing more in the Indian society for which the LICI has mobilized for all the resources available for its business. As, information is now increasingly accepted as the most important resources, LICI has given much importance for effective utilization of the much information through information technology as it is the source of significant competitive advantage. The slogan LIC knows India better means LIC gives considerable time to know, to analyze their products and services and satisfaction level of the customers with their products and services. So, LICIs vital question is effective management and analyses of data available to the company to re-infrastructure it in the awake of the technological revolution. LICI has already shifted from administrative hierarchy to single point servicing through extensive use of technology for which customer relationship management department has been set up.

LICI and the internet:

Internet is nothing but millions of computers talking in to each other, thus facilitating people across the global to transact business, communicate, educate and entertain themselves. If anybody wants to access to a computer which has an internet connection and type the address, LICI is official website will flash on the screen of his computer after a few second.

Internet marketing:
The essential requirement of marketing success is Visibility and Reach in the market. While in the last couple of decades, information technology has revolutionized the way that obtains and process information, the Internet is now revolutionizing the way that the corporation connects to each other. Potential of the Internet: The internet is changing the perception of organization towards the market as well as towards of their own business processes. The internet makes possible aggregation of information over very large scales and this qualitatively changes the nature and role of enterprise management. The internet provides opportunities to organizations to a) b) c) d) e) Optimally centralized. Improve instant information and decision making across the world. Provide speedy response through coordination across multiple locations. Possess better control over quality of services despite distribution. Have automation of much routine function.

The challenges in front of marketers is how to enter the market on the net before the competitors do so and in this way build for oneself the first mover advantage. As it is, niche, vertical portals are the sites with the most mostly chance of survival in the long run. In India computer penetration is low and insurance market has not matured, direct marketing through the net could not be restricted to select markets city-based, affluent and highly educated.

Alter net channel of premium payment:

a) Internet Payment: As many as seven banks HDFC, ICICI, Centurian Bank of Punjab, AXIS Bank, Corporation Bank, Federal Bank and CitiBank and Bill Collection Providers Billijunction.com and Billdesk.com are the main service provider of LICI. Any of the

policyholder who has a bank account in India can use this facility. b) Electronic Clearing Services (ECS): This service is currently available in selected cities. It will be extended to other centers where the RBI has extended their ECS facility. A policyholder having an account in any bank which is a member of local Clearing House can opt for ECS debit to pay premiums. The advantage of this system is that once the option is exercised, the policyholder need not visit a branch for paying the premium or collecting the receipts. On the day indicated by the policyholder, the premium amount will directly debited to the bank account of the policyholder and the receipt will be issued by the designated branch office. ECS Monthly Mode: ECS channel of premium payment for monthly mode policies introduced from proposal stage for all plans without the 5% extra charge. The Mandate Form, duly certified by the banker has to be submitted along with the Proposal Form for new policy. c) ATM of Corporation Bank and AXIS Bank : Premium can be paid through the ATMs of Corporation Bank and AXIS Bank. This service is available for the Corporation Bank and AXIS Bank account holders who are also the policyholders of the LICI. Policy information will be available at the ATM during the days of grace for premium payment. On payment of premium, the policyholder will get an acknowledgement receipt from the ATM and later on, a designated branch will send the actual receipt to the policyholder.

Online collection of premium through AXIS Bank:

Renewal premium can be paid at all Axis Bank branches either by using AXIS Bank cheque or by cash. A receipt is generated by the bank and signed on behalf of LICI by the AXIS Bank official and handed over the customer.

Portal:
The policyholder has to entroll his/her policies at the website of the LICI and can pay premium by clicking on the online premium payment tab. This facility is available at the customers of LICI, having access to net banking facility of the following bank Bank of India, Union Bank of India, Punjab National Bank, State bank of India, HDFC Bank, ICICI Bank, AXIS Bank, Citi Bank, IDBI Bank Centurian Bank of Punjab and Induslnd Bank.

KEY STAFF
KEY STAFF
ADMINISTRATIVE STRUCTURE OF KANPUR DIVISIONAL OFFICE

CATEGORIES OF STAFF IN LIFE INSURANCE CORPORATION OF INDIA (LICI)

CLASS-I a. b. c. d. e. Managing Director. Executive Director. Chief/Zonal Manager. Secretary/Deputy Zonal manager/Senior Divisional Manager. Deputy Secretary/Secretary at Zonal office /Divisional manager.

f. Assistant Secretary/Assistant Divisional manager/Senior manager. g. Administrative Officer/Branch Manager. h. Assistant Administrative Office/Assistant Branch Manager.

Branch

CLASS-II Development Officers CLASS -III a. High Grade Assistant. b. Stenographer/Internal Assistant Auditor. c. Section Head d. Assistant. e. Cashier. f.Typist. g. Machine Operator. h. Record Clerk. CLASS IV a. b. c. d. Driver. Soppy Head Peon. Watchman /Liftmen. Sweeper and Cleaner.

Claims Dept:
This is an operating position to provide administrative support to marketing manager on branch activities and lease with other departments of the divisional office in respect of guidance, clarification and advice sought by the branches. The main role of the officer is that a) Appropriate data in respect of branches monthly performance as reveled by the work status report and other relevant returns. b) Effective clarification and advice in respect of references received by the divisional office from branches. c)Satisfaction of agents and branches in respect of all commission complaints, including commission bills due from other divisional office.

New Business (NB) Dept:

This is a specialize position for providing adequate support to branches to unable them to carry out new business functions efficiently and to maintain standard of underwriting. The main roles played by the officers of new business are a) Availability of updated guidelines on underwriting practices and on new business functions and that these guidelines are understood by branches. b) Analysis of information about quality of underwriting and other new business functions of the divisions and of each branch. c)Efficient working of new business department of the division through effective procedures, control and supervision of stuff.

Office Services (OS) Dept:

This is an operating position to provide efficient office services and to assist in maintenance of office premises and other estates and their accounts. The role that the manager of the office service department are a) Economy in purchase of furnisher and equipment and their optimum utilization. b) Efficient services like Typing pool, Mail, Telephone, Fax etc. c)A system of ensuring security and maintenances of office premises and other estates and effective watch and ward arrangements. d) Satisfy employees in respect of services like salary, LTC, leave, terminal benefits etc. e) Efficient working of OS department through effective procedures, controls and supervision of staff in the department.

Planning Dept:
This is a specialize position for providing adequate support to branches to enable them to carry out functions of planning and budgeting and review. The planning officer plays the role as a) A reliable and analytical data for preparation and updating of profile of the division and identifying the reliable sources of data by the branches. b) Trend analysis of performances of branches for review of divisional management. c) Evaluation of annual plans and budget of branches and the divisional offices on the basis of trend analysis and expected future growth for review by the divisional management. d) Better understanding by branches about the concept and processes of

planning and budgeting. e) Efficient working of planning department of the divisional office through effective procedures, controls and supervisions.

Policy Servicing Dept:

This is the position for providing adequate support and services in matters relating to policy servicing at branch office and the divisions. The working role of the particular department is as a) Availability of timely and reliable data/ information for use at the branches for effective policy servicing. b) Update knowledge of policy servicing systems, procedures and rules in the divisional office and branches. c) Systematic analysis of data in respect of policy servicing activities with review and recommendations for appropriate action by the divisional management. d) Efficient working of policy servicing department of divisional office through efficient procedures, controls and supervisions.

Sales Dept:
This is an operating position for providing adequate support and services in matters relating to sales function at the divisional office and branch offices. The role of the officers involve in this department are a) Analytical data with regard to performance of agents and development effacers for resource planning and development. b) Updated knowledge of sales administrative operation in divisional office and branches. c)Effective systems, controls and information services for recruitment of development officers. d) Efficient working of sales department through effective procedures, control and supervision of staff in the department.

QUALITY OF WORK LIFE IN LICI

The term Quality of Work Life has come to mean in recent times more than job security, good working conditions, adequate and fair compensation, equal employment opportunities etc. It ensures to every person opportunities at any level to influence their work environment and to have a say in relation to their work. This also requires the right type of organizational climate, culture and structure that relate, encourage and

facilitate questions and challenges to improve the existing modes. The quality of work life at LICI is ensured through: 1. 2. 3. 4. 5. 6. 7. 8. 9. Generous leave facilities, enhancement of leaves. Acceptable working hours, leisure hours. Reasonable good working conditions. Medical facilities/med claim insurance scheme. Leave travel concession (for home and other than hometown) Accident benefits while on duty. Group savings, line insurance, term insurance. Death and retirement benefits/gratuity/pension/family pension. Monetary incentives for family planning scheme /for passing technical examinations of insurance.

MARKETING POLICIES
MARKETING POLICIES
To discuss the marketing policy of any organization, we should know small overview of the respective department of the organization. Here, this is a very small description of the marketing department of Life Insurance Corporation of India MARKETING DEPARTMENT: The market will see high growth with all the players embarking on an aggressive sales pitch. While emphasis on consolidation of the existing market is essential, it has to be ensured that the business growth is not outpaced by the growth of the market. That requires expanding to new markets in an intensive manner. For this a scientific approach to segmenting markets & planting of marketing intermediaries is needed. Segmentation, thus, should expand beyond the traditional geographical & occupational; to more specific & area wise location of customer groups i.e. Metro & NonMetro segmenting etc. The thrust areas for this will include Resource Augmentation, Increasing size of the policy and Productivity enhancement of the marketing team. Focus to be given on increasing our geographical penetration by way of SOs, planting of marketing intermediaries in vacant spots and further scientific segmentation to reach out to new markets. Sensitive concern about the way competitors are advancing and how they are going about their business is required. Use of P &GS, B &AC and MI and other distribution channels for cross selling, repeat selling and reference selling and integrating the channels to ensure a market share of 75 %. As the Market Leader our thrust areas for the FY 2008-09 are as follows: 1. Greater geographical penetration by way of SOs. 2. Distribution Channel Resource augmentation by increasing the number of marketing intermediaries. 3. Increased focus on :-

a. HNI segment b. Pension segment c. Female segment. 4. Data Warehouse to be utilized for focused targeting of leads. 5. Skill enhancement of Marketing Intermediaries. 6. Product positioning and effective use of media and advertising tools. 7. Micro Insurance and Alternate Channels. 8. High Renewal Premium Growth. 9. BASMI as a productivity enhancing tool. 10. Marketing intelligence to be stressed upon to keep building awareness as to happenings in the market as well as the strategies being adopted by the competitors.

INTERNET MARKETING The essential requirement of marketing success is Visibility and Reach in the market. While in the last couple of decades, information technology has revolutionized the way that obtains and process information, the Internet is now revolutionizing the way that the corporation connects to each other. Potential of the Internet: The internet is changing the perception of organization towards the market as well as towards of their own business processes. The internet makes possible aggregation of information over very large scales and this qualitatively changes the nature and role of enterprise management. The internet provides opportunities to organizations to f)Optimally centralized. g) Improve instant information and decision making across the world. h) Provide speedy response through coordination across multiple locations. i)Possess better control over quality of services despite distribution. j)Have automation of much routine function. The challenges in front of marketers is how to enter the market on the net before the competitors do so and in this way build for oneself the first mover advantage.

A FOCUS POLICY

ON

EFFECTIVENESS

OF

MARKETING

Marketing is an environment centric initiative. A peep into the current and emerging environment is essential. Marketing as far as insurance industry is concerned must be seen primarily in the context of the fact that it deals in a product, which is basically unsought and in respect of which even awareness has to be often generated before proceeding to identify a need, convert into a want and fulfill it. The importance of marketing in insurance industry is more pronounced due to the fact that the sacrifice of the customer (premium) is real and immediate where as the benefit is distant and contingent. According to Theodre Leavitt, the consumers do not buy products; they buy solutions to their problems. In insurance prospective customer may not be able to understand his problem and hence may be reluctant to buy insurance solutions. Hence the marketing of insurance involves the creation of demand. As a national organization LICIs marketing objective is to provide optimal financial security through life insurance as extensively as possible to diverse peoplea) In urban and rural areas. b) With different occupations and sources of income and c) In high, middle and low income levels, keeping in mind the changing socio-economic environment of the country, customer satisfaction, need to provide cover at minimum cost, need to mobilize increasing volume of savings. For achieving these objectives the goals spelt out in the marketing policy to bring about marketing approach in various tiers of LIC, to better penetrate into rural areas and market segments not covered earlier, to offer adequate range of products, to improve customer satisfaction, to develop a dynamic organization and to improve cost effectiveness. The whole approach to the corporation business activity has been refashioned. The concept of organization has been changed from a sales organization to a marketing organization. The offices are made environmental and the human resource development is aptly exercised. The strategies adopted by LIC are adapting to the changing needs by capitalizing on opportunities and are countering threats of the presence of 13 other private companies. The LIC has adopted some conscious,

calculated steps to improve its organizational effectiveness. The review system gives life the performance budgeting and becomes a process for a qualitative evolution of results. DEFINED GOALS The defined goals of LICS marketing policy are defined as follows: A. Bringing about a marketing approach in the various tiers of the organizational Hierarchy. B. Better penetration into rural areas and market segments urban and rural that are not adequately explored. C. Offering adequate range of products suitable for different segments of people. D. Improving customer satisfaction- By ensuring need based selling ; By evolving standards of performance for different aspects of servicing; By devising appropriate procedures and systems; By enhancing the commitment to service on the part of agents and employees. E. Developing a dynamic field organization- With a good geographically spread over all parts of the country; Capable of selling and servicing with knowledge and skill and responsiveness to the customers needs; with a low rate of exits; with increasing productivity levels. STRATEGIES For evolving effective strategies with a view to achieving goals it was found useful to take a look at the strengths and weaknesses of the organization and the opportunities and threats before it. No single strategy in isolation will take us nearer our goals or objectives can be fully sub served by a particular strategy. What is needed is a total package which when adopted is likely to help achieve the goals. PRODUCT DEVELOPMENT Product Development is an integral part of the marketing strategies of LICI. It implies i. Improvement in existing product. ii. Introduction of new products. iii. Withdrawal of existing products. In order that the product development is executed , a continuous study of market preference is undertaken which includes feedback from field force , special studies and surveys , study of competitors performance and products, trend of current new business , sales statistics etc. The LIC till now

brought in 172 plans of which only 45 plans are now in vogue and the remaining plans have been withdrawn at different time depending upon the market trend , profitability etc. Recently introduced new plans JEEVAN SARAL, BIMA PLUS and FUTURE PLUS LINKED with units and share market are selling well. The NEW JANARAKSHA plan meets the insurance needs of the agricultural market segment. There are four PENSION PLANS viz. NEW JEEVAN SURAKSHA, NEW JEEVAN DHARA, and JEEVAN NIDHI to cater to the needs of pension to the insuring public UNIT LINKED INSURANCE In the present Indian market scenario where the falling of interest rates in the market is resulting in lower of returns under guaranteed return products, investment linked products are an excellent way of providing consumers with excess of returns. A unit linked insurance product provides an opportunity for the good investor to benefit from the returns available in the capital market without most of risks inherent in direct investment along with insurance cover. A unit linked insurance plan is a combination of the protection and savings of life insurance with the attractive prospect of investing in securities and capital market. The insurer accumulates the premium collected from policyholders and invests them on behalf of the policyholders. A unit represents a proportionate share in the amount of the unit fund by collection of premium. Unit linked products are transparent and visible for customers to take decisions and put the policy holder in control. These products are flexible and adaptable. Only four insurance companies are offering unit linked insurance products at present. a) b) c) d) LIC OF INDIA BIRLA SUN LIFE INSURANCE ICICI PRUDENTIAL LIFE INSURANCE OM KOTAK MAHINDRA LIFE INSURANCE

LIC OF INDIA has two unit linked products viz. a) BIMA PLUS b) FUTURE PLUS While Bima Plus is a unit linked plan, Future Plus is unit linked pension plan.

Rewarding System of Agent: As far as marketing strategy towards field organization is concerned, the main thrust is given to increase in the number of competent and productive agents every year. To become an agent, the IRDA has defined certain guidelines for the appointments of agents e.g. age minimum 18 years, qualification 12th standard pass must undergone Pre-recruitment training of 100 hours as per course designed by IRDA and also must have passed the examination. After completion of the training the agents can work for the corporation. The Corporation has a scheme of Urban Career Agents and Rural Career Agents to promote the cause of professional sing the agency force. They are given stipends for the first two years of their career to enable to settle down in the profession. Thus the groups of agents are increasing. The reward system for agents is another, which is presently linked with premium and conservation of business, in the form of commissions (SEE APPENDIX). In addition to the monetary compensation, non-monetary recognition system including vesting of functioning powers has been evolved to enhance the status of agents. In order to recognize agents who perform consistently year after year, clubs at five levels have been designed viz. Chairman, Zonal Manager, Divisional Manager, Branch Manager, and Distinguished Agents. The qualifying standards demand consistently over a period of 3 or 4 years. Rules are given in APPENDIX. This club membership enjoys certain privileges and authority. Moreover there is a scheme for financing advances to agents which is given in APPENDIX. Development Officers: While Development officers will continue to be the main sources of creation of new agencies, marketing policy of LIC envisages the creation of additional sources. Accordingly insurance is also sold through corporate agents, brokers and bank assurance (selling insurance through Banks). As regards Development officers, thrust has been given that they should recruit agents giving due regards to their suitability for under tapped segments and areas. For these, the agency force now stands at 11 lacs. The marketing policy also envisages the development of a dynamic field organization. With the view, the corporation has established training institutes as mentioned in the organization structure in this booklet. The methodology adopted includes both class room/ theoretical and on the job

training with relevance to the segments /areas where the field force will mainly be operating, using the latest communication equipment in the audio/ visual area. The employees/ field force is nominated to these institutes for various programme and refresher courses. As per LIC annual report on 3/2004, the Development officers and agents trained during the financial year 2003-2004 in these institutes are: ZTC: 9058 numbers STC: 52288 numbers DTC: 17953 numbers ATC: 12013 numbers Apart from the above, DTC and ATC imparted training to 331560 agents. Public Relation and Publicity: The LICs public relation and publicity efforts aimed at building a strong brand image of the Corporation brought fruits in the form of accolades from diverse entities. During the year 2003-2004, 20 crore people were reached through LICs publicity campaign. The corporation received the Brand Leadership Award at the India Brand Summit and was rated Most Trusted Service Brand after a survey by ECONOMIC TIMES, and ORG MARG Dun and Brand Street has ranked LIC as NUMBER ONE among the top 500 companies in India. The effective marketing policy and strategies of LIC is responsible for such a brand image of the Corporation. In the following pages, attempt has been made to discuss the performance of LIC keeping in mind the stated objectives of nationalization and marketing policy.

Comparative Analysis
TOTAL FIRST YEAR PREMIUM OF INSURANCE COMPANIES

figures in crores

TOTAL FIRST YEAR PREMIUM NO OF POLICIES FOR20082010LIFE INSURER FOR 2007-2008 2009 2009-2010 2011 2,40,27,3 LIC OF INDIA 19785.93 16240.43 2,69,68,069 93 ICICI 1584.08 750.91 4,36,196 6,14,673 BSLI 621.28 449.86 1,55,598 1,98,370 HDFC 486.15 209.33 2,03,205 2,06,320 SBI 482.93 202.47 86495 1,29,974 TATA AIG 300.22 180.15 1,61,967 2,28,894 BAJAJ ALLIANZ 860.02 179.7 1,85,350 2,88,191 MAX NEWYORK 224.69 124.08 1,45,581 2,16,671 OM KOTAK 374.75 77.14 51071 63468 AVIVA 192.29 72.55 71001 83209 ING VYSYA 281.62 27.88 90977 1,11,141 AMP SANMAR 91.18 23.38 46282 35268

PJAIN@AMITY.EDU

Performance of LIC in Rural Areas

One of the objectives of LIC is to spread life insurance in rural areas and LIC has been quite successful in attaining the objective. Over the years, there has been a significant increase in rural business. As per the earlier definition of rural, half of the LICs business came from rural areas, since the IRDA regulations came into being, the definition of rural is revised specifying that only the villages with population less than 5000 and 75% of male population are engaged in agriculture, and density of population up to 400 per sq. km are rural areas. The rural population as per census is estimated at 74.3% of total population. As per the definition of rural areas by IRDA, the new business from rural areas amounts to Rs.35651.99 crores sum assured under 62.19 lakhs policies representing 22.79% and 17.85% share of policies and sum assured respectively during the year 2003-2004 as compared to 45.23 lakh policies and Rs. 23547.69 crs sum assured in 2002-2003 and 35651.99 cr sum assured,62.19 lakh policies. The growth rate in rural business is 37.50% in NOP and 51.40% is sum assured in 2003-04.

The Insurance business in India now:

The insurance business in India was monopoly business of LIC of India by Govt. after nationalization. The sector has been opened up in the year 2000 as there was an urgent need in view of economic liberalization which refers to the efforts taken by the state towards faster economic development by adopting changes in existing economic policies, rules and regulations. The insurance business is growing at a faster rate due the presence of 13 private competitive players. The total business in respect of individual insurance and group insurance as recorded by the insurance industry in India as a whole during the last two financial years are as under:YEAR 2003-2004 2004-2005 NO OF (lakhs) 286.27 262.60 POLICIES AMOUNT OF PREMIUM (crores) 18669.40 25342.88

Position of market share as in the above two years of 13 private insurers and LIC of India is as under:Year 3/2004 3/2005 LIC individual Premium Policies 86.05% 94.21% 78.07% 91.5% Private Insurance Premium Policies 13.95% 5.79% 21.93% 8.50%

In respect of Group insurance the LICs market share in 2004-05 is 84.67% and 74.31% in premium and number of policies respectively. 10. Therefore, it may be said that in spite of 13 other private insurance companies ,LIC of India is the market leader and will be able to stand as giant in future . The LIC at present has more than 17 crores policy holders.

ATTRACTIVE FEATURES OF THE COMPANY

ATTRACTIVE FEATURES OF THE COMPANY
SPECIAL FEATURES/ STRENGTH OF LIFE INSURANCE CORPORATION OF INDIA 1. Since 1956, LIC has been reaching out to millions of individuals through a network of 2048 branches and committed teams of employees and agents. 2. In addition to being the premier life insurer in India, LIC has a significant presence through overseas offices in Mauritius, London, Fiji, Kenya, Burma and gulf countries and also through overseas joint ventures in Sri Lanka, Nepal and Mauritius. 3. LIC today has earned the status of the worlds largest life insurance company operating with a clientele of over 18 crores policies in a single country. 4. LICI is the 2nd largest PC user in the country. 5. Human Resources strength: a) b) c) d) e) f) Managerial - - -19160 Development officers - - - 19230 Supervisory, Clerical and Subordinates - -76198 Agents - - - -10,52,283 Urban Career Agents - - - -25,856 Rural Career Agents - - - -46,418

6. Product Strength: a) Lowest premium rates b) Least premium for Accident Benefit c) Plans available from new born to aged

d) e) f) g)

Highest Bonus rates Innovative products Micro insurance Highest number of products at present 42 products.

7. A glorious track of awards for LIC speaks for its strength. A few of them are as follows: a) Awaz Consumer Awards 2005 and 2006 given by CNBC TV. b) Golden Peacock Global Award for corporate social responsibility by World Council for corporate governance 2004 and 2005. c) LIC adjusted no.1 in Net Worth and Net Profit among 500 top companies by Dun and Bradstreet, 2004. d) Golden Peacock Innovative Product/service Awards, 2004 and 2005. e) LIC adjusted no.1 Service brand in India by Economic Times and AC Neilson Org Marg in 2004 for 2nd consecutive year. f) NDTV Profit Business Leadership award 2006. g) Readers Digest Trusted Brand Award 2007. h) Consumers Super brand Award, 2006-07. i) Asia Insurance Merit Award 2005/2006 in the area of Corporate Social Responsibility. LICs e-portal website has won Webbys Consumer voted Best website award. STRENGTH An insurance agent when he goes out to the market to canvass insurance on behalf of its company, must be aware of the strength of its company, how does it stands better than others, why should a prospect insure with this company instead of any other company which also offer similar life insurance products. The agent has to sell its company before it tries to sell life insurance products. The agent, therefore, would do well to know the company profile, which is normally available in the form of a printed pamphlet and emphasis on the companys strengths. Here however the agent is cautioned against any exaggerations or falsehood or hyperbole

spoken in praise of the company, as at a later stage the bluff may be called and shall put him and the company in the bad light. Admission of Age: Age is the main basis of calculation of premium under life insurance policies. The following are accepted as evidence of age

Certified extract from Municipal or Local Bodys records made at the time of birth. Certificate of Baptism or Certified Extract from Family Bible, if it contains age or date of birth. Certified Extract from School or College records, if age or date of birth is stated therein. Certified Extract from Service Register in the case of 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 bankers 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, Vijaywada, 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.

OPERATION OF LICI LICI operate all over the India. Every year LICI expanding its business places to cover all the places of India including both rural and urban areas. LIC has traversed a long distance surpassing many milestone and creating numerous new landmark along the way. LIC is perhaps the single largest financial institution with a total life fund of over Rs. 3,85,000/- crore, 17 crore policies and a total annual income of Rs. 1,07,969/- crore on 31 st march, 2005. There was an accretion of Rs. 64,000/- crore to the life fund after meeting the claim liabilities, which is nearly 4% of the GDP of the country. During the year 2004-2005, LIC settled a staggering 115 lakh claims, maturity and death, with a pay-out of nearly Rs. 25,000/- crore. In the tenth five year plan along the contribution of LIC to the resource mobilization was over Rs. 1,80,000/- crore. ON THE SPOT POLICIES The first on-the-spot-policies campaign was launched by the Northern Zone on 15th August 1961 in Sampla, a place in Chandigarh Division, where 44 policies assuring a sum of Rs. 2.10 lakh were issued. This was followed by another drive at Larsauli by the same branch where 100 policies assuring a sum of Rs. 5.32 lakh were issued. Technology has enabled LIC today to realize its Endeavour of On the spot policies on a mass scale and as a matter of routine process. Year 2000 witnessed LIC going in for large scale Business process reengineering and the Green Channel was born as one of the outcomes. The Green Channel

is an improved New Business module which allows issuance of instant policies. Just take a look at how the Green Channel functions and the Policy Bond is delivered across the counter: 1 The Proposer or his Agent brings the proposal to the NB section and its registered. 2 The proposal is underwritten and if it is acceptable, a decision is recorded. 3 Premium quotation is provided for payment. 4 Actual premium is paid at the counter, policy number is allotted and premium receipt is issued, thereby avoiding the proposal deposit stage.

LICs MARKET PLUS This is a unit linked pension plan wherein the pension is payable after a specified period. Four types of investment Funds namely Bond, Secured, Balanced and Growth Fund are offered. Though primarily a Pension product, the plan has many attractive features and options which make it an ideal Retirement solution for the future. Benefits: A) On Vesting: On vesting of the policy, the Fund Value will be utilized to provide a pension based on the then prevailing Annuity rates. An option to commute up to one third of the payable benefit in a lump sum is available. B) On Death: In event of the unfortunate death of the policy holder the Fund Value along with the Riders, if any, will be payable in a lump sum or as a pension.

GOVT. POLICIES RELATED TO THE BUSINESS

GOVT. POLICIES RELATED TO THE BUSINESS
LIFE INSURANCE CORPORATION ACT, 1956 While piloting the bill for the establishment of the LICI, the then Finance Minister made the objectives of the corporation in the following a) The business must be conducted with the utmost economy and in a spirit of trusteeship, with the full realization that the money belongs to the policyholders. b) The premium must be no higher than warranted by strict actuarial consideration. c) The fund must be invested so as to accrue the maximum yield for the policyholders that it may be possible to secure consistency with the safety of the capital. d) It must render prompt and efficient service to its policyholders and thereby make insurance widely popular. The nationalization of the life insurance business was felt to be a need in the public interest, as a public utility and a social service. It is justified on the grounds of ideology, philosophy and the objective of the welfare state. It was based on a desire to mobilize the savings of the community for meeting the objectives of the five year plans.

THE VARIOUS PLANS

a) Term assurance plan: xviii. the two year temporary assurance policy xix. the mortgage redemption policy xx. the convertible term assurance policy b) Permanent assurance plans: xxi. whole life policy xxii. limited payment whole life policy xxiii. limited payment life policies with single premium xxiv. the convertible whole life policy c) Endowment policy: xxv. marriage endowment/ education annuity xxvi. the endowment assurance with limited payment xxvii. double endowment(without profit) xxviii.key man insurance xxix. endowment policy for persons having irregular income xxx. plans for persons having short span of very high income life d) Money back policy e) double death benefit policy f) triple death benefit plan g) plan for housing needs- double death benefit h) joint life policy i) children assurance policy j) plan for female child k) children money back plan without profit l) plan for handicapped child m) annuity policy xxxi. immediate annuity policy xxxii. deferred annuity xxxiii.the immediate annuity certain xxxiv.the deferred annuity certain n) pension plan

FINDINGS
FINDINGS DURING THE PROJECT 1. LIFE INSURANCE CORPORATION OF INDIA has great goodwill the liberalized Indian market. It is the sole public sector player in the life insurance market of India with twenty one private companies in countrys market. 2. There is a lot of scope of life insurance in India. Only 2.5 people are secure with life insurance so the insurance sector is its booming stage this boom will more increase in 2-3 years. 3. Good profile insurance advisor could do better job. If LICI mentions the level of advisor then they give great sales to the company. 4. LICI has tuff competition with all the leading private players of the life insurance market viz. ICICI PRU, TATA AIG, BAJAJ ALLIANCE, BIRLA SUNLIFE INSURANCE, SAHARA, ING VYASA, OM KOTAK MAHINDRA, HDFC INSURANCE, SBI LIFE etc. 5. 5.LICI has interested and profitable plans for different age groups. 6. Within 20-25 year age group the sincerity level is high. They are career oriented and want to earn more. 7. In 25-30 age group people made interest to purchase the kids plan and pension plan and money back plan. 8. In the age group of 30-35 years the people who are earning more than 3 lakh p. y. made interest to purchase ULIP. 9. I found that in insurance sector a person should have great communication and convenience skill.

10. Because of pressure the employees are not able to give their best performance. They dont want to take too many risks.

Having to offer risk coverage to its insuring public, it cannot match other saving instruments in terms of rate of return and therefore stands at a disadvantage. The question of market share, therefore, shall become

relevant only decade hence

1.

www.licindia.com

BIBLIOGRAPHY

2. 3. 4. 5.

www.irdaindia.com www.google.com www.wikipidia.com Marketing Management - Phillip Kotler

Questionnaire
Name : Age : Occupation : Income : 1. Do you have any Insurance policy? a) Yes [ ] b) No. [ ] 2. If yes in which insurance company you have your a) LIC [ ] b) ICICI [ ] c) HDFC [ ] d) Birla Sunlife [ ] If no Why................................... 3. Reasons for purchasing life Insurance Policy? a) To cover life risk [ b) To save tax [ c) To invest saving [ d) To meet income need after retirement [ e) any other [ 4.

policy?

] ] ] ] ]

5. 6.

What benefit you feel for purchasing insurance policy? a) Life risk cover [ ] b) Medi claim facility provides. [ ] c) Family requirements fulfilled after death Of earning hand. [ ] d) Loan Facility. [ ] e) Returns after the specific period aids to The income. [ ] f) All the above [ ] Which according to you is better insurance company? a) LIC [ ] b) ICICI [ ] c) HDFC [ ] d) Birla Sunlife [ ] What are the reasons behind your choice of insurance company? a) Better Services [ ] b) Better Plans [ ] c) Better Returns [ ] d) Better Pension plan and other schemes [ ] e) Better goodwill [ ]

7.

Which sector you feel better for insurance sector? a) Public [ ] b) Private [ ] 8. Do you feel that government should take proper measures to increase the promotion of life insurance? a) Yes [ ] b) No [ ] 9. In which insurance Company you would like to invest in near future? a) LIC [ ] b) ICICI [ ] c) HDFC [ ] d) Birla Sunlife [ ] 10. What benefits you feel from taking a life insurance policy (20 words)? ................................................................................................. ...............................................................................