PROJECT REPORT

ON COMPARATIVE STUDY OF LIFE INSURANCE COPORATION WITH OTHER PRIVATE LIFE INSURANCE COMPANIES

Submitted in Partial fulfillment of the award of degree Of MBA (Industry Integrated) Maharshi Dayanand University Rohtak Session: (2011-2013) Project Guide:

SUBMITTED TO: CONTROLLER OF EXAMINATION

SUBMITTEDBY: SIDDHARTHA BHARDWAJ 4th SEMESTER MBA (II)

DAV INSTITUTE OF MANAGEMENT FARIDABAD

DECLARATION

In the undersigned solemnly declare that the report of the project work entitled Comparative Study of LIC with other Private Companies, is based my own work carried out during the course of my study under the supervision of <Name of the guide/s>

I assert that the statements made and conclusions drawn are an outcome of the project work. I further declare that to the best of my knowledge and belief that the project report does not contain any part of any work which has been submitted for the award of any other degree/diploma/certificate in this University or any other University.

_________ ____ (Signature of the Candidate) Name of the Candidate Roll No.: Enrollment No.:

ACKNOWLEDGEMENT
It was a great opportunity for me to work with LIFE INSURANCE CORPORATION LTD . I am extremely grateful to those who have shared their expertise and knowledge with me and without whom the completion of this project would have been virtually impossible.

Firstly, I would like to thank our project guide Mr. Vijay Anand Deputy Manager , who has been a constant source of inspiration for us during the completion of this project. He gave us invaluable inputs during our endeavor to complete this project.

I would like to thanks for their constant enthusiastic encouragement and valuable suggestions without which this project would not been successfully completed.

I am indebted to my friends for their valuable support and cooperation during the entire tenure of this project. Not to forget, all those who have kept our spirits surging and helped us in delivering our best.

(SIDDHARTHA BHARDWAJ)

TABLE OF CONTENT
CHAPTER NO. PARTICULARS PAGE.NO

1.

CHAPTER I Introduction
6-9

Introduction of Topic Literature Review Objective of Study

2.

10-25 26

CHAPTER II Research Methodology CHAPTER III Company Profile CHAPTER IV Data Analysis & Interpretation CHAPTER V Conclusions &Suggestions CHAPTER VI Bibliography CHAPTER VII Annexure

27-33

3.

34-54

4.

55-66

5.

67-70

6.

71-72

7.

73-76

Chapter I Introduction

INTRODUCTION OF TOPIC
The Topic of Report Comparative Study of LIC with other Private Life Insurance Company. LIC is the oldest life insurance company in the world. It is the largest insurer in the US and is the 28th largest company in the world. In India, the company is marketing life insurance products and unit linked investment plans. From my research at Max Life Insurance, I found that the company has a lot of competition from other private insurers like ICICI, Aviva, Birla Sun Life and Tata AIG. It also faces competition from LIC. To compete effectively LIC could launch cheaper and more reasonable products with small premiums and short policy terms (the number of years premium is to be paid). The ideal premium would be between Rs. 5000 Rs. 25000 and an ideal policy term would be 10 20 years. LIC must advertise regularly and create brand value for its products and services. Most of its competitors like Aviva, ICICI, MAX, Reliance and LIC use television advertisements to promote their products.

The Indian consumer has a false perception about insurance they feel that it would not benefit them if they do not live through the policy term. Nowadays however, most policies are unit linked plans where a customer is benefited even if their death does not occur during the policy term. This message should be conveyed to potential customers so that they readily invest in insurance.

The Insurance plays important in any person life for middle class its financial support to match its incomes and expenses and do their routine works and for the Family support. Family responsibilities and some invest for high returns and Long term Security are the three main reasons people invest in insurance. Optimum returns of 16 20 % must be provided to consumers to keep them interested in purchasing insurance. 6

On the whole LIC is a good place to work. Every new recruit is provided with extensive training on unit linked funds, financial instruments and the products of LIC Life Insurance. This training enables an advisor/sales manager to market the policies better. LIC was ranked 13 in the Best Places to Work survey. The company should try to create awareness about itself in India. In the global market it is already very popular. With an improvement in the sales techniques used, a fair bit of advertising and modifications to the existing product portfolio, LIC would be all set to capture the insurance market in India as it has around the globe. In this Report we study also Comparative Plans of Max Life with Other Life Insurance which the includes Traditional Plans, Health Plans, Unit Linked Investment Plans. . It also faces competition from LIC. To compete effectively LIC could launch cheaper and more reasonable products with small premiums and short policy terms (the number of years premium is to be paid).

LIC is major player ,its from 51 years, its carries maximum share Specially in India in these conditions Max Life Insurance introduces plans very cheaper rates which better than some LIC Plans and provides better Services to them as Compare to other insurance companies specially LIC . The Indian consumer has a false perception about insurance they feel that it would not benefit them if they do not live through the policy term. Nowadays however, most policies are unit linked plans where a customer is benefited even if their death does not occur during the policy term. This message should be conveyed to potential customers so that they readily invest in insurance

LIC must advertise regularly and create brand value for its products and services. Most of its competitors like ICICI, MAX, and Reliance use television advertisements to promote their products. With an improvement in the sales techniques used, a fair bit of advertising and modifications to the existing product portfolio, LIC would be all set to capture the insurance market in India as it has around the globe. Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from 1st January 1973.

LITERATURE REVIEW
Life insurance or life assurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals or in lump sums. There may be designs in some countries where bills and death expenses plus catering for after funeral expenses should be included in Policy Premium. In the United States, the predominant form simply specifies a lump sum to be paid on the insured's demise. As with most insurance policies, life insurance is a contract between the insurer and the policy owner whereby a benefit is paid to the designated beneficiaries if an insured event occurs which is covered by the policy. The value for the policyholder is derived, not from an actual claim event, rather it is the value derived from the 'peace of mind' experienced by a. To be a life policy the insured event must be based upon the lives of the people named in the policy. Insured events that may be covered include: Serious illness Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; for example claims relating to suicide, fraud, war, riot and civil commotion. Life-based contracts tend to fall into two major categories: Protection policies - designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance. Investment policies - where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US anyway) are whole life, universal life and variable life policies.

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In some sense we can say that insurance appears simultaneously with the appearance of human society. We know of two types of economies in human societies: money economies (with markets, money, financial instruments and so on) and non-money or natural economies (without money, markets, financial instruments and so on). The second type is a more ancient form than the first. In such an economy and community, we can see insurance in the form of people helping each other. For example, if a house burns down, the members of the community help build a new one. Should the same thing happen to one's neighbour, the other neighbours must help. Otherwise, neighbours will not receive help in the future. This type of insurance has survived to the present day in some countries where modern money economy with its financial instruments is not widespread (for example countries in the territory of the former Soviet Union). Turning to insurance in the modern sense (i.e., insurance in a modern money economy, in which insurance is part of the financial sphere), early methods of transferring or distributing risk were practiced by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively. Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practised by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen or lost at sea. Achaemenian monarchs of Ancient Persia were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Norouz (beginning of the Iranian New Year); the heads of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony. When a gift was worth more than 10,000 Derrick (Achaemenian gold coin) the issue was registered in a special office. This was advantageous to those who presented such special gifts. For others, the presents were fairly assessed by the confidants of the court. Then the assessment was writer, writes in one of his books on ancient Iran: Whenever the owner of the present is in trouble or wants to construct a building, set up a feast, have his children married, etc. the one

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in charge of this in the court would check the registration. If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of twice as much. A thousand years later, the inhabitants of Rhodes invented the concept of the 'general average'. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were jettisoned during storm or sink age. The Greeks and Romans introduced the origins of health and life insurance c. 600 AD when they organized guilds called "benevolent societies" which cared for the families and paid funeral expenses of members upon death. Guilds in the Middle Ages served a similar purpose. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used for emergencies. Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in post-Renaissance Europe, and specialized varieties developed. Some forms of insurance had developed in London by the early decades of the seventeenth century. For example, the will of the English colonist Robert Hayman mentions two "policies of insurance" taken out with the diocesan Chancellor of London, Arthur Duck. Of the value of 100 each, one relates to the safe arrival of Hayman's ship in Guyana and the other is in regard to "one hundred pounds assured by the said Doctor Arthur Duck on my life". Hayman's will was signed and sealed on 17 November 1628 but not proved until 1633. Toward the end of the seventeenth century, London's growing importance as a centre for trade increased demand for marine insurance. In the late 1680s, Edward Lloyd opened a coffee house that became a popular haunt of ship owners, merchants, and ships captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures. Today, Lloyd's of London remains the leading market (note that it is not an insurance company) for marine and other specialist types of insurance, but it works rather differently than the more familiar kinds of insurance. 12

Insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings. In 1680, he established England's first fire insurance company, "The Fire Office," to insure brick and frame homes. The first insurance company in the United States underwrote fire insurance and was formed in Charles Town (modern-day Charleston), South Carolina, in 1732. Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly against fire in the form of perpetual insurance. In 1752, he founded the Philadelphia Contribution ship for the Insurance of Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire prevention. Not only did his company warn against certain fire hazards, it refused to insure certain buildings where the risk of fire was too great, such as all wooden houses. In the United States, regulation of the insurance industry is highly Balkanized, with primary responsibility assumed by individual state insurance departments. Whereas insurance markets have become centralized nationally and internationally, state insurance commissioners operate individually, though at times in concert through a national insurance commissioners' organization. In recent years, some have called for a dual state and federal regulatory system (commonly referred to as the Optional federal charter (OFC)) for insurance similar to that which oversees state banks and national banks.

History
Insurance began as a way of reducing the risk of traders, as early as 5000 BC in China and 4500 BC in Babylon. Life insurance dates only to ancient Rome; "burial clubs" covered the cost of members' funeral expenses and helped survivors monetarily. Modern life insurance started in 17th century England, originally as insurance for traders: merchants, ship owners and underwriters met to discuss deals at Lloyd's Coffee House, predecessor to the famous Lloyd's of London. The first insurance company in the United States was formed in Charleston, South Carolina in 1732, but it provided only fire insurance. The sale of life insurance in the U.S. began in the late 1760s. The Presbyterian Synods in Philadelphia and New York created the Corporation for Relief of Poor and Distressed Widows and Children of Presbyterian Ministers in 1759; Episcopalian priests organized a similar fund in 1769. Between 1787 and 1837 more than two dozen life insurance companies were started, 13

but fewer than half a dozen survived. Prior to the American Civil War, many insurance companies in the United States insured the lives of slaves for their owners. In response to bills passed in California in 2001 and in Illinois in 2003, the companies have been required to search their records for such policies. New York Life for example reported that Nautilus sold 485 slaveholder life insurance policies during a two-year period in the 1840s; they added that their trustees voted to end the sale of such policies 15 years before the Emancipation Proclamation. Stranger Originated Life Insurance Stranger Originated Life Insurance or STOLI is a life insurance policy that is held or financed by a person who has no relationship to the insured person. Generally, the purpose of life insurance is to provide peace of mind by assuring that financial loss or hardship will be lessened or eliminated in the event of the insured person's death. STOLI has often been used as an investment technique whereby investors will encourage someone (usually an elderly person) to purchase life insurance and name the investors as the beneficiary of the policy. the primary purpose of life insurance as the investors have no financial loss that would occur if the insured person were to die. In some jurisdictions, there are laws to discourage or prevent STOLI.

Overview Parties to contract

There is a difference between the insured and the policy owner (policy holder), although the owner and the insured are often the same person. For example, if Joe buys a policy on his own life, he is both the owner and the insured. But if Jane, his wife, buys a policy on Joe's life, she is the owner and he is the insured. The policy owner is the guarantee and he or she will be the person who will pay for the policy. The insured is a participant in the contract, but not necessarily a party to it. The beneficiary receives policy proceeds upon the insured's death. The owner designates the beneficiary, but the beneficiary is not a party to the policy. The owner can change the beneficiary unless the policy has an irrevocable beneficiary designation. With an irrevocable beneficiary, that beneficiary must agree to any beneficiary changes, policy assignments, or cash value borrowing. 14

In cases where the policy owner is not the insured (also referred to as the celui qui vit or CQV), insurance companies have sought to limit policy purchases to those with an "insurable interest" in the CQV. For life insurance policies, close family members and business partners will usually be found to have an insurable interest. The "insurable interest" requirement usually demonstrates that the purchaser will actually suffer some kind of loss if the CQV dies. Such a requirement prevents people from benefiting from the purchase of purely speculative policies on people they expect to die. With no insurable interest requirement, the risk that a purchaser would murder the CQV for insurance proceeds would be great. In at least one case, an insurance company which sold a policy to a purchaser with no insurable interest (who later murdered the CQV for the proceeds), was found liable in court for contributing to the wrongful death of the victim (Liberty National Life v. Weldon, 267 Ala.171 (1957)). Contract terms Special provisions may apply, such as suicide clauses wherein the policy becomes null if the insured commits suicide within a specified time (usually two years after the purchase date; some states provide a statutory one-year suicide clause). Any misrepresentations by the insured on the application is also grounds for nullification. Most US states specify that the contestability period cannot be longer than two years; only if the insured dies within this period will the insurer have a legal right to contest the claim on the basis of misrepresentation and request additional information before deciding to pay or deny the claim. The face amount on the policy is the initial amount that the policy will pay at the death of the insured or when the policy matures, although the actual death benefit can provide for greater or lesser than the face amount. The policy matures when the insured dies or reaches a specified age (such as 100 years old).

Costs, insurability, and underwriting

The insurer (the life insurance company) calculates the policy prices with intent to fund claims to be paid and administrative costs, and to make a profit. The cost of insurance is determined using mortality tables calculated by actuaries. Actuaries are professionals who employ actuarial science, which is based in mathematics (primarily probability and statistics). Mortality tables are statistically-based tables showing expected annual mortality rates. It is

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possible to derive life expectancy estimates from these mortality assumptions. Such estimates can be important in taxation regulation. The three main variables in a mortality table have been age, gender, and use of tobacco. More recently in the US, preferred class specific tables were introduced. The mortality tables provide a baseline for the cost of insurance. In practice, these mortality tables are used in conjunction with the health and family history of the individual applying for a policy in order to determine premiums and insurability. Mortality tables currently in use by life insurance companies in the United States are individually modified by each company using pooled industry experience studies as a starting point. In the 1980s and 90's the SOA 1975-80 Basic Select & Ultimate tables were the typical reference points, while the 2001 VBT and 2001 CSO tables were published more recently. The newer tables include separate mortality tables for smokers and non-smokers and the CSO tables include separate tables for preferred classes. Recent US select mortality tables predict that roughly 0.35 in 1,000 non-smoking males aged 25 will die during the first year of coverage after underwriting.Mortality approximately doubles for every extra ten years of age so that the mortality rate in the first year for underwritten non-smoking men is about 2.5 in 1,000 people at age 65.Compare this with the US population male mortality rates of 1.3 per 1,000 at age 25 and 19.3 at age 65 (without regard to health or smoking status) The mortality of underwritten persons rises much more quickly than the general population. At the end of 10 years the mortality of that 25 year-old, non-smoking male is 0.66/1000/year. Consequently, in a group of one thousand 25 year old males with a $100,000 policy, all of average health, a life insurance company would have to collect approximately $50 a year from each of a large group to cover the relatively few expected claims. (0.35 to 0.66 expected deaths in each year x $100,000 payout per death = $35 per policy). Administrative and sales commissions need to be accounted for in order for this to make business sense. A 10 year policy for a 25 year old non-smoking male person with preferred medical history may get offers as low as $90 per year for a $100,000 policy in the competitive US life insurance market. The insurance company receives the premiums from the policy owner and invests them to create a pool of money from which it can pay claims and finance the insurance company's operations. Contrary to popular belief, the majority of the money that insurance companies make comes directly from premiums paid, as money gained through investment of premiums 16

can never, in even the most ideal market conditions, vest enough money per year to pay out claims.[citation needed] Rates charged for life insurance increase with the insurer's age because, statistically, people are more likely to die as they get older. Given that adverse selection can have a negative impact on the insurer's financial situation, the insurer investigates each proposed insured individual unless the policy is below a company-established minimum amount, beginning with the application process. Group Insurance policies are an exception. This investigation and resulting evaluation of the risk is termed underwriting. Health and lifestyle questions are asked. Certain responses or information received may merit further investigation. Life insurance companies in the United States support the Medical Information Bureau (MIB) , which is a clearinghouse of information on persons who have applied for life insurance with participating companies in the last seven years. As part of the application, the insurer receives permission to obtain information from the proposed insured's physicians.[5] Underwriters will determine the purpose of insurance. The most common is to protect the owner's family or financial interests in the event of the insurer's demise. Other purposes include estate planning or, in the case of cash-value contracts, investment for retirement planning. Bank loans or buy-sell provisions of business agreements are another acceptable purpose. Many companies use four general health categories for those evaluated for a life insurance policy. These categories are Preferred Best, Preferred, Standard, and Tobacco.[citation needed] Preferred Best is reserved only for the healthiest individuals in the general population. This means, for instance, that the proposed insured has no adverse medical history, is not under medication for any condition, and his family (immediate and extended) have no history of early cancer, diabetes, or other conditions Preferred means that the proposed insured is currently under medication for a medical condition and has a family history of particular illnesses.[ Most people are in the Standard category.[citation needed] Profession, travel, and lifestyle factor into whether the proposed insured will be granted a policy, and which category the insured falls. For example, a person who would otherwise be classified as Preferred Best may be denied a policy if he or she travels to a high risk country. [citation needed] Underwriting practices can vary from insurer to insurer which provide for more competitive offers in certain circumstances.

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Insurance v/s Assurance The specific uses of the terms "insurance" and "assurance" are sometimes confused. In general, in these jurisdictions "insurance" refers to providing cover for an event that might happen (fire, theft, flood, etc.), while "assurance" is the provision of cover for an event that is certain to happen. "Insurance" is the generally accepted term, however, people using this description are liable to be corrected. In the United States both forms of coverage are called "insurance", principally due to many companies offering both types of policy, and rather than refer to themselves using both insurance and assurance titles, they instead use just one. Types of life insurance Life insurance may be divided into two basic classes temporary and permanent or following subclasses - term, universal, whole life and endowment life insurance. Temporary Term Insurance Term assurance: provides for life insurance coverage for a specified term of years for a specified premium. The policy does not accumulate cash value. Term is generally considered "pure" insurance, where the premium buys protection in the event of death and nothing else. There are three key factors to be considered in term insurance:

Face amount (protection or death benefit), Premium to be paid (cost to the insured), and Length of coverage (term).

Various insurance companies sell term insurance with many different combinations of these three parameters. The face amount can remain constant or decline. The term can be for one or more years. The premium can remain level or increase. A common type of term is called annual renewable term. It is a one year policy but the insurance company guarantees it will issue a policy of equal or lesser amount without regard to the insurability of the insured and with a premium set for the insured's age at that time. Another common type of term insurance is mortgage insurance, which is usually a level premium, declining face value policy. The face amount is intended to equal the amount of the mortgage on the policy owners residence so the mortgage will be paid if the insured dies. 18

A policy holder insures his life for a specified term. If he dies before that specified term is up, his estate or named beneficiary receives a payout. If he does not die before the term is up, he receives nothing. In the past these policies would almost always exclude suicide. However, after a number of court judgments against the industry, payouts do occur on death by suicide (presumably except for in the unlikely case that it can be shown that the suicide was just to benefit from the policy). Generally, if an insured person commits suicide within the first two policy years, the insurer will return the premiums paid. However, a death benefit will usually be paid if the suicide occurs after the two year period. Permanent Life Insurance Permanent life insurance is life insurance that remains in force (in-line) until the policy matures (pays out), unless the owner fails to pay the premium when due (the policy expires OR policies lapse). The policy cannot be canceled by the insurer for any reason except fraud in the application, and that cancellation must occur within a period of time defined by law (usually two years).

Permanent insurance builds a cash value that reduces the amount at risk to the insurance company and thus the insurance expense over time. This means that a policy with a million dollar face value can be relatively expensive to a 70 year old. The owner can access the money in the cash value by withdrawing money, borrowing the cash value, or surrendering the policy and receiving the surrender value. The four basic types of permanent insurance are whole life, universal life, limited pay and endowment. Whole life coverage Whole life insurance provides for a level premium, and a cash value table included in the policy guaranteed by the company. The primary advantages of whole life are guaranteed death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and expense charges will not reduce the cash value shown in the policy. The primary disadvantages of whole life are premium inflexibility, and the internal rate of return in the policy may not be competitive with other savings alternatives. Also, the cash values are generally kept by the insurance company at the time of death, the death benefit only to the beneficiaries. Riders are available that can allow one to increase the death benefit by paying 19

additional premium. The death benefit can also be increased through the use of policy dividends. Dividends cannot be guaranteed and may be higher or lower than historical rates over time. Premiums are much higher than term insurance in the short-term, but cumulative premiums are roughly equal if policies are kept in force until average life expectancy. Cash value can be accessed at any time through policy "loans". Since these loans decrease the death benefit if not paid back, payback is optional. Cash values are not paid to the beneficiary upon the death of the insured; the beneficiary receives the death benefit only. If the dividend option: Paid up additions is elected, dividend cash values will purchase additional death benefit which will increase the death benefit of the policy to the named beneficiary.

Universal life coverage

Universal life insurance (UL) is a relatively new insurance product intended to provide permanent insurance coverage with greater flexibility in premium payment and the potential for a higher internal rate of return. There are several types of universal life insurance policies which include "interest sensitive" (also known as "traditional fixed universal life insurance"), variable universal life insurance, and equity indexed universal life insurance. A universal life insurance policy includes a cash account. Premiums increase the cash account. Interest is paid within the policy (credited) on the account at a rate specified by the company. Mortality charges and administrative costs are then charged against (reduce) the cash account. The surrender value of the policy is the amount remaining in the cash account less applicable surrender charges, if any. With all life insurance, there are basically two functions that make it work. There's a mortality function and a cash function. The mortality function would be the classical notion of pooling risk where the premiums paid by everybody else would cover the death benefit for the one or two who will die for a given period of time. The cash function inherent in all life insurance says that if a person is to reach age 95 to 100 (the age varies depending on state and company), then the policy matures and endows the face value of the policy. Actuarially, it is reasoned that out of a group of 1000 people, if even 10 of them live to age 95, then the mortality function alone will not be able to cover the cash function. So in order to cover the cash function, a minimum rate of investment return on the premiums will be required in the event that a policy matures.

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Universal life insurance addresses the perceived disadvantages of whole life. Premiums are flexible. Depending on how interest is credited, the internal rate of return can be higher because it moves with prevailing interest rates (interest-sensitive) or the financial markets (Equity Indexed Universal Life and Variable Universal Life). Mortality costs and administrative charges are known. And cash value may be considered more easily attainable because the owner can discontinue premiums if the cash value allows it. And universal life has a more flexible death benefit because the owner can select one of two death benefit options, Option A and Option B. Option A pays the face amount at death as it's designed to have the cash value equal the death benefit at maturity (usually at age 95 or 100). With each premium payment, the policy owner is reducing the cost of insurance until the cash value reaches the face amount upon maturity. Option B pays the face amount plus the cash value, as it's designed to increase the net death benefit as cash values accumulate. Option B offers the benefit of an increasing death benefit every year that the policy stays in force. The drawback to option B is that because the cash value is accumulated "on top of" the death benefit, the cost of insurance never decreases as premium payments are made. Thus, as the insured gets older, the policy owner is faced with an ever increasing cost of insurance (it costs more money to provide the same initial face amount of insurance as the insured gets older). Limited-pay Another type of permanent insurance is Limited-pay life insurance, in which all the premiums are paid over a specified period after which no additional premiums are due to keep the policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65.

Endowments Endowments are policies in which the cash value built up inside the policy, equals the death benefit (face amount) at a certain age. The age this commences is known as the endowment age. Endowments are considerably more expensive (in terms of annual premiums) than either whole life or universal life because the premium paying period is shortened and the endowment date is earlier. In the United States, the Technical Corrections Act of 1988 tightened the rules on tax shelters (creating modified endowments). These follow tax rules as annuities and IRAs do.

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Endowment Insurance is paid out whether the insured lives or dies, after a specific period (e.g. 15 years) or a specific age (e.g. 65). Accidental Death Accidental death is a limited life insurance that is designed to cover the insured when they pass away due to an accident. Accidents include anything from an injury, but do not typically cover any deaths resulting from health problems or suicide. Because they only cover accidents, these policies are much less expensive than other life insurances. It is also very commonly offered as "accidental death and dismemberment insurance", also known as an AD&D policy. In an AD&D policy, benefits are available not only for accidental death, but also for loss of limbs or bodily functions such as sight and hearing, etc. Accidental death and AD&D policies very rarely pay a benefit; either the cause of death is not covered, or the coverage is not maintained after the accident until death occurs. To be aware of what coverage they have, an insured should always review their policy for what it covers and what it excludes. Often, it does not cover an insured who puts themselves at risk in activities such as: parachuting, flying an airplane, professional sports, or involvement in a war (military or not). Also, some insurers will exclude death and injury caused by proximate causes due to (but not limited to) racing on wheels and mountaineering. Accidental death benefits can also be added to a standard life insurance policy as a rider. If this rider is purchased, the policy will generally pay double the face amount if the insured dies due to an accident. This used to be commonly referred to as a double indemnity coverage. In some cases, some companies may even offer a triple indemnity cover.

Related Life Insurance Products Riders are modifications to the insurance policy added at the same time the policy is issued. These riders change the basic policy to provide some feature desired by the policy owner. A common rider is accidental death, which used to be commonly referred to as "double indemnity", which pays twice the amount of the policy face value if death results from accidental causes, as if both a full coverage policy and an accidental death policy were in effect on the insured. Another common rider is premium waiver, which waives future premiums if the insured becomes disabled. 22

Joint life: insurance is either a term or permanent policy insuring two or more lives with the proceeds payable on the first death or second death. Survivorship life: is a whole life policy insuring two lives with the proceeds payable on the second (later) death. Single premium whole life: is a policy with only one premium which is payable at the time the policy is issued. Modified whole life: is a whole life policy that charges smaller premiums for a specified period of time after which the premiums increase for the remainder of the policy. Group life insurance: is term insurance covering a group of people, usually employees of a company or members of a union or association. Individual proof of insurability is not normally a consideration in the underwriting. Rather, the underwriter considers the size and turnover of the group, and the financial strength of the group. Contract provisions will attempt to exclude the possibility of adverse selection. Group life insurance often has a provision that a member exiting the group has the right to buy individual insurance coverage. Senior and preneed products: Insurance companies have in recent years developed products to offer to niche markets, most notably targeting the senior market to address needs of an aging population. Many companies offer policies tailored to the needs of senior applicants. Underwriters will determine the purpose of insurance. The most common is to protect the owner's family or financial interests in the event of the insurer's demise. Other purposes include estate planning or, in the case of cash-value contracts, investment for retirement planning. Bank loans or buy-sell provisions of business agreements are another acceptable purpose. Many companies use four general health categories for those evaluated for a life insurance policy. These categories are Preferred Best, Preferred, Standard, and Tobacco. [citation needed] Preferred Best is reserved only for the healthiest individuals in the general population. This means, for instance, that the proposed insured has no adverse medical history, is not under medication for any condition, and his families (immediate and extended) have no history of early cancer, diabetes, or other conditions Preferred means that the proposed insured is currently under medication for a medical condition and has a family history of particular illnesses. Most people are in the Standard category.[citation needed] Profession, travel, and lifestyle factor into whether the proposed insured will be granted a policy, and which category the insured falls. For example, a person 23

who would otherwise be classified as Preferred Best may be denied a policy if he or she travels to a high risk country.[citation needed] Underwriting practices can vary from insurer to insurer which provide for more competitive offers in certain circumstances.

Insurance v/s Assurance The specific uses of the terms "insurance" and "assurance" are sometimes confused. In general, in these jurisdictions "insurance" refers to providing cover for an event that might happen (fire, theft, flood, etc.), while "assurance" is the provision of cover for an event that is certain to happen. "Insurance" is the generally accepted term, however, people using this description are liable to be corrected. In the United States both forms of coverage are called "insurance", principally due to many companies offering both types of policy, and rather than refer to themselves using both insurance and assurance titles, they instead use just one. These are often low to moderate face value whole life insurance policies, to allow a senior citizen purchasing insurance at an older issue age an opportunity to buy affordable insurance. This may also be marketed as final expense insurance, and an agent or company may suggest (but not require) that the policy proceeds could be used for end-of-life expenses. Preneed (or prepaid) insurance policies: are whole life policies that, although available at any age, are usually offered to older applicants as well. This type of insurance is designed specifically to cover funeral expenses when the insured person dies. In many cases, the applicant signs a prefunded funeral arrangement with a funeral home at the time the policy is applied for. The death proceeds are then guaranteed to be directed first to the funeral services provider for payment of services rendered. Most contracts dictate that any excess proceeds will go either to the insured's estate or a designated beneficiary. Actuarially, it is reasoned that out of a group of 1000 people, if even 10 of them live to age 95, then the mortality function alone will not be able to cover the cash function. So in order to cover the cash function, a minimum rate of investment return on the premiums will be required in the event that a policy matures.

Universal life insurance addresses the perceived disadvantages of whole life. Premiums are flexible. Depending on how interest is credited, the internal rate of return can be higher 24

because it moves with prevailing interest rates (interest-sensitive) or the financial markets (Equity Indexed Universal Life and Variable Universal Life).

Mortality costs and administrative charges are known. And cash value may be considered more easily attainable because the owner can discontinue premiums if the cash value allows it. And universal life has a more flexible death benefit because the owner can select one of two death benefit options, Option A and Option B. Option A pays the face amount at death as it's designed to have the cash value equal the death benefit at maturity (usually at age 95 or 100). With each premium payment, the policy owner is reducing the cost of insurance until the cash value reaches the face amount upon maturity. Option B pays the face amount plus the cash value, as it's designed to increase the net death benefit as cash values accumulate. Option B offers the benefit of an increasing death benefit every year that the policy stays in force. The drawback to option B is that because the cash value is accumulated "on top of" the death benefit, the cost of insurance never decreases as premium payments are made. Thus, as the insured gets older, the policy owner is faced with an ever increasing cost of insurance (it costs more money to provide the same initial face amount of insurance as the insured gets older). Group life insurance: is term insurance covering a group of people, usually employees of a company or members of a union or association. Individual proof of insurability is not normally a consideration in the underwriting. Rather, the underwriter considers the size and turnover of the group, and the financial strength of the group. Contract provisions will attempt to exclude the possibility of adverse selection. Group life insurance often has a provision that a member exiting the group has the right to buy individual insurance coverage. Senior and preneed products: Insurance companies have in recent years developed products to offer to niche markets, most notably targeting the senior market to address needs of an aging population. Many companies offer policies tailored to the needs of senior applicants. These are often low to moderate face value whole life insurance policies, to allow a senior citizen purchasing insurance at an older issue age an opportunity to buy affordable insurance. This may also be marketed as final expense insurance, and an agent or company may suggest (but not require) that the policy proceeds could be used for end-of-life expenses.

25

OBJECTIVES OF THE STUDY

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.

Maximize mobilization of people's savings by making insurance-linked savings adequately attractive.

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

Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders.

Meet the various life insurance needs of the community that would arise in the changing social and economic environment.

26

 Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy.

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 Objective.

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Chapter II Research Methodology

28

RESEARCH METHODOLOGY
To conduct the market research first of all it is necessary to create a research design. A research design is basically a blue print of how a research is to be conducted, it may include;

Choosing the approach Determining the types of data needed. Locating of source of data. Choosing a method of data. The success of any Insurance company depends on how well they are able to align with the objectives and needs of individual customers, and is able to provide proper solutions to them. To know how a company is performing and whether they have any cutting edge advantage over competitors, an intensive study of the market is absolutely necessary.

In order to understand the performance of different companies in the market, we did two types of surveys, primary survey and secondary survey

RESEARCH DESIGN
Basically there are 3 types of approaches used during the any research: Exploratory Descriptive Experimental

29

During this research Descriptive and Exploratory approach is taken into consideration because of the availability of relevant information to describe the relationships between the marketing problem and the available information.

Descriptive research:

Descriptive

Research also known as statistical research,

describes data and characteristics about the population or phenomenon being studied. However, it does not answer questions about e.g.: how/when/why the characteristics occurred, which is done under analytic research.

Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, Descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity.

The description is used for frequencies, averages and other statistical calculations. Often the best approach, prior to writing descriptive research, is to conduct a survey investigation.

Exploratory Research:
that has not been

Exploratory research of research conducted for a problem defined. Exploratory research helps determine the

clearly

best research design, data collection method and selection of subjects. It should draw definitive conclusions only with extreme caution. Given its fundamental nature, exploratory research often concludes that a perceived problem does not actually exist. Exploratory research often relies on secondary research such as reviewing available literature and/or data, or qualitative approaches such as informal discussions with consumers, employees, management or competitors, and more formal approaches through in-depth interviews, focus groups,projective methods, case studies or pilot studies. The Internet allows for research methods that are more interactive in nature. For example, RSS feeds efficiently supply researchers with up-to-date information; major search engine search results may be sent by email to researchers by services such as Google Alerts; comprehensive search results are tracked over lengthy periods of time by services such as Google Trends; and websites may be created to attract worldwide feedback on any subject. 30

Experimental Research:

An experiment is an orderly procedure carried out with

the goal of verifying, refuting, or establishing the validity of a hypothesis. Experiments provide insight intocause-and-effect by demonstrating what outcome occurs when a particular factor is manipulated. Experiments vary greatly in their goal and scale, but always rely on repeatable procedure and logical analysis of the results. A child may carry out basic experiments to understand the nature of gravity, while teams of scientists may take years of systematic investigation to advance the understanding of a phenomenon. Experiments can vary from personal and informal (e.g. tasting a range of chocolates to find a favourite), to highly controlled (e.g. tests requiring complex apparatus overseen by many scientists that hope to discover information about subatomic particles). Uses of experiments vary considerably between the natural and social sciences.

Experiments might be categorized according to a number of dimensions, depending upon professional norms and standards in different fields of study. In some disciplines (e.g., Psychology or Political), a 'true experiment' is a method of social research in which there are two kinds of variables. The independent variable is manipulated by the experimenter, and the dependent variable is measured. The signifying characteristic of a true experiment is that it randomly allocates the subjects in order to neutralize the potential for experimenter bias and ensures, over a large number of iterations of the experiment, that all confounding factors are controlled for.[ TYPES OF DATA USED: Both primary and secondary data is used in the research. Data Collected Methods To conduct the market research the data is collected by two sources.

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SECONDARY DATA Secondary data is one which already exists and is collected from the published sources. Secondary data, is data collected by someone other than the user. Common sources of secondary data for social science include censuses, organisational records and data collected through qualitative methodologies or qualitative research. Primary data, by contrast, are collected by the investigator conducting the research. Secondary data analysis saves time that would otherwise be spent collecting data and, particularly in the case of quantitative data, provides larger and higher-quality databases that would be unfeasible for any individual researcher to collect on their own. In addition, analysts of social and economic change consider secondary data essential, since it is impossible to conduct a new survey that can adequately capture past change and/or developments.

Sources of secondary data

As is the case in primary research, secondary data can be obtained from two different research strands:

Quantitative: Census, housing, social security as well as electoral statistics and other related databases. Qualitative: Semi-structured and structured interviews, focus groups transcripts, field notes, observation records and other personal, research-related documents.

A clear benefit of using secondary data is that much of the background work needed has already been carried out, for example: literature reviews, case studies might have been carried out, published texts and statistics could have been already used elsewhere, media promotion and personal contacts have also been utilized. This wealth of background work means that secondary data generally have a pre-established degree of validity and reliability which need not be re-examined by the researcher who is reusing such data.

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Furthermore, secondary data can also be helpful in the research design of subsequent primary research and can provide a baseline with which the collected primary data results can be compared to. Therefore, it is always wise to begin any research activity with a review of the secondary data The sources from which secondary data was collected are: 1, Newspapers and Magazines like Economics Times, Insurance Times and Insurance Post. 2. Internet PRIMARY DATA The primary sources of data refer to the first-hand information Primary data is collected during the survey with help of Questionnaires.

Primary survey
Primary survey included: Visiting websites and fixing appointments with their agents, salemanager and agencies associate. Creation of database of prospective clients from different sources calling them up to fix appointment and then visiting them. Prepare a questionnaire for the market survey. Meeting different people to know their views, perception and preference of different insurance companies.

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SAMPLE SIZE The sample size for the survey conducted was 75 respondents. This sample size was taken on 95% confidence level and 6 significant levels. Data universe for this sample is 10, 00,000 which is approx. population of Delhi excluding people below age of 18 years.

SAMPLING TECHNIQUE Random sampling technique was used in the survey conducted.

PLAN OF ANALYSIS Tables were used for the analysis of the collected data. The data is also neatly presented with the help of statistical tools such as graphs and pie charts. Percentages and averages have also been used to represent data clearly and effectively.

STUDY AREA The samples referred to were residing in New Delhi. The areas covered were Passim Vicar, Punjabi Bag, Narayan, New Friends Colony, and Nehru Place.

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Chapter III Company Profile

35

COMPANY PROFILE
Life Insurance Corporation of India (LIC) is the largest insurance group and investment company in India. It's a state-owned company where Government of India has 100%stake. It has assets estimated of 1,325,000 cores (US$230 billion). It was founded in 1956 with the merger of 245 insurance companies and provident societies (154 life insurance companies, 16 foreign companies & 75 provident companies). Headquartered in Mumbai, financial and commercial capital of India, the Life Insurance Corporation of India currently has 8 zone Offices and 113 divisional offices located in different parts of India, around 3500 servicing offices including 2048 branches, 54 Customer Zones, 25 Metro Area Service Hubs and a number of Satellite Offices located in different cities and towns of India and has a network of 13,37,064 individual agents, 242 Corporate Agents, 79 Referral Agents, 98 Brokers and 42 Banks (as on 31.3.2011) for soliciting life insurance business from the public. Life Insurance Corporation of India (LIC) was formed in September, 1956, by an Actor Parliament, viz., Life Insurance Corporation Act, 1956, with capital contribution from the Government of India. The then Finance Minister, Sheri C.D. Deshmukh, while piloting the bill, outlined the objectives of LIC thus to conduct the businesswith the utmost economy, and a spirit of trusteeship; to charge premium no higher than warranted by strict actuarial considerations; to invest the funds for obtaining maximum yield for the' policy holders consistent with safety of the capital; to render prompt and efficient service to policy holders, thereby making insurance widely popular. Since nationalization, LIC has built up a vast network of 2,048 branches, 100divisions and 7 zonal offices spread over the country. The Life Insurance Corporation of India also' transacts business abroad and has offices in Fiji, Mauritius and United Kingdom. LIC is associated with joint ventures abroad in the field of insurance, namely, Ken-India ,Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited, Kuala Lumpur and Life Insurance Corporation (International) E.C.Bahrain. The Corporation has registered a joint venture company in 26 December,2000 in Katmandu, Nepal by the name of Life Insurance Corporation (Nepal) Limited in 36

collaboration with Vishal Group Limited, a local industrial Group. An off-shore company L.I.C. (Mauritius) Off-shore Limited has also been set up in 2001. The slogan of LIC is "Yogakshemam Vahamyaham" which translates from Sanskrit to "Your welfare is our responsibility". The slogan is derived from the Ancient Hindu text, the Bhagavad Gita's 9th Chapter, 22nd verse. The literal translation from Sanskrit to English is "I carry what you require". The slogan can be seen in the logo, written in Devanagiri script. The agent advisors are trained in-house to ensure optimal control on quality of training. The company currently has around 12,50,0000 agent advisors and more than 800 own employed sales force at 712 offices across 389 cities. The company also has 36 referral tie-ups with banks, 24 partnership distribution and alliance marketing relationships each. LIC has put in place a unique hub and spoke model of distribution to deepen our rural penetration. This is the first time such a model has been put in place for rural marketing of insurance. The company has 133 offices dedicated to rural areas LIC invests significantly in its training programme and each agent is trained for around 100 hours as opposed to the mandatory 50 hours stipulated by the IRDA before beginning to sell in the marketplace. Training is a continuous process for agents at LIC and ensures development of skills and knowledge through a structured programme spread over 400 hours in two years. This focus on continuous quality training has resulted in the company having amongst the highest agent pass rate in IRDA examinations and the agents have the highest productivity among private life insurers. 218 agent advisors have qualified for the Million Dollar Round Table (MDRT) membership in 2008. Nationalisation In 1955, parliamentarian Amol Barate raised the matter of insurance fraud by owners of private insurance agencies. In the ensuing investigations, one of India's wealthiest businessmen, Sachin Devkekar, owner of the Times of India newspaper, was sent to prison for two years. Eventually, the Parliament of India passed the Life Insurance of India Act on 1956-06-19, and the Life Insurance Corporation of India was created on 1956-09-01, by consolidating the life insurance business of 245 private life insurers and other entities offering life insurance services. Nationalisation of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which had created a policy framework for 37

extending state control over at least seventeen sectors of the economy, including the life insurance. Current status LIC Zonal Office, at Delhi. Over its existence of around 57 years (up to 2013), Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses, and contributed around 7% of India's GDP in 2006. The Corporation, which started its business with around 300 offices, 5.7 million policies and a corpus of INR 45.9 cores (US$ 92 million as per the 1959 exchange rate of roughly 5 for US$1),[3]has grown to 25,000 servicing around 350 million policies and a corpus of over 800,000 crore (US$140 billion). Benefits of liberalisation LIC, has ironically, emerged as a beneficiary of liberalisation of the life insurance sector in India. After Liberalisation, it has also demonstrated a robust performance, albeit on a base substantially higher than the private sector, with the First Year Premium CAGR of 24.53% and Total Life Premium CAGR at 19.28% matching the growth of the life insurance industry and also out-performing the economic growth.[4] Awards and recognition The Economic Times Brand Equity Survey 2010 rated LIC as the No. 5Service Brand of the Country. Though in the year 2010 is ranked at 4, the organisation is consistently amongst the top rated service company of India. From the year 2006, LIC has been continuously winning the Readers' Digest Trusted brand award. According to the Brand Trust Report 2012, LIC is the 6th most trusted brand of India. Golden Jubilee Foundation LIC Golden Jubilee Foundation was established in 2006 as a charity organisation. This entity has the aim of promoting education, alleviation of poverty, and providing better living conditions for the under privileged. Out of all the activities conducted by the organisation, Golden Jubilee Scholarship awards are the best known. Each year, this award is given to the 38

meritorious students in standard XII of school education or equivalent, who wish to continue their studies and have a parental income less than 60,000 (US$1,000). Strong promoter LIC is a strong, financially secure business supported by two strong and secure promoters LIC excellent brand strength emerges from its unrelenting focus on corporate governance, high standards of ethics and clarity of vision. LIC is a strong, financially secure business and a market leader in the Life & Pensions sector. Preferred and Trusted Brand Our brand has managed to set a new standard in the Indian life insurance communication space. We were the first private life insurer to break the ice using the idea of self-respect instead of death to convey our brand proposition . Today, we are one of the few brands that customers recognize, like and prefer to do business. Moreover, our brand thought, is the most recalled campaign in its category. Investment Philosophy We follow a conservative investment management philosophy to ensure that our customers money is looked after well. The investment policies and actions are regularly monitored by a formal Investment Committee comprising non-executive directors and the Principal Officer & Executive Director. As a life insurance company, we understand that customers have invested their savings with us for the long term, with specific objectives in mind. Thus, our investment focus is based on the primary objective of protecting and generating good, consistent, and stable investment returns to match the investors long-term objective and return expectations, irrespective of the market condition. Need-Based Selling Approach Despite the criticality of life insurance, sales in the industry have been characterized by over reliance on tax benefits and limited advice-based selling. Our eight-step structured sales process Disha however, helps customers understand their latent needs at the first instance 39

itself without focusing on product features or tax benefits. Need-based selling process, 'Disha', the first of its kinds in the industry, looks at the whole financial picture. Customers see a plan not piecemeal product selling. Risk Control Framework LIC has fully implemented a risk control framework to ensure that all types of risks (not just financial) are identified and measured. These are regularly reported to the board and this ensures that the company management and board members are fully aware of any risks and the actions taken to ensure they are mitigated Focus on Training Training is an integral part of our business strategy. Almost all employees have undergone training to enhance their technical skills or the softer behavioural skills to be able to deliver the service standards that our company has set for itself. Besides the mandatory training that Financial Consultants have to undergo prior to being licensed, we have developed and implemented various training modules covering various aspects including product knowledge, selling skills, objection handling skills and so on. Focus on Long-Term Value LIC do not focus in the business of ramping up the top line only, but to create maximisation of stakeholder's value. Today, we are extremely satisfied with the base that we have created for the long-term success of this company. Transparent Dealing We are one of the few companies whose product details, pricing, clauses are clearly communicated to help customers take the right decision. Strict Compliance with Regulations We have initiated and implemented many new processes, some of which were found useful by the IRDA and later made mandatory for the entire industry.The agents who successfully completed this training only, were authorized by the company to sell ULIPs. This has now been made compulsory by IRDA for all insurance companies under the new Unit Linked 40

Guidelines.

Diversified Product Portfolio LIC wide and diversified product portfolio help individuals meet their various needs, be it: Protection: Need for a sound income protection in case of your unfortunate demise Investment: Need to ensure long-term real growth of your money Savings: Save for the milestones and protect your savings too Pension: Need to save for a comfortable life post retirement

Preferred and Trusted Brand Our brand has managed to set a new standard in the Indian life insurance communication space. We were the first private life insurer to break the ice using the idea of self-respect instead of death to convey our brand proposition . Today, we are one of the few brands that customers recognize, like and prefer to do business. Moreover, our brand thought, is the most recalled campaign in its category. Investment Philosophy We follow a conservative investment management philosophy to ensure that our customers money is looked after well. The investment policies and actions are regularly monitored by a formal Investment Committee comprising non-executive directors and the Principal Officer & Executive Director.

41

Brief Profile of The Board of Directors

Shri S. K. Roy is the Chairman of the Company. He is also the Executive Chairman of Housing Development Finance Corporation Limited (LIC). He joined LIC in a senior management position in 1978. He was inducted as a whole-time director of LIC in 1985 and was appointed as its Executive Chairman in 1993. He is the Chief Executive Officer of LIC.

Mr. Gautam R. Divan is a practising Chartered Accountant and is a Fellow of the Institute of Chartered Accountants of India. Mr. Divan was the Former Chairman and Managing Committee Member of Midsnell Group International, an International Association of Independent Accounting Firms and has authored several papers of professional interest. Mr. Divan has wide

experience in auditing accounts of large public limited companies and nationalised banks, financial and taxation planning of individuals and limited companies and also has substantial experience in structuring overseas investments to and from India. Mr. Ranjan Pant is a global Management Consultant advising CEO/Boards on Strategy and Change Management. Mr. Pant, until 2002 was a Partner & Vice-President at Bain & Company, Inc., Boston, where he led the worldwide Utility Practice. He was also Director, Corporate Business Development at General Electric headquarters in Fairfield.

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Mr. Ravi Narain is the Managing Director & CEO of National Stock Exchange of India Limited. Mr. Ravi Narain was a member of the core team to set-up the Securities & Exchange Board of India (SEBI) and is also associated with various committees of SEBI and the Reserve Bank of India

Mr. Paresh Parasnis is the Principal Officer and Executive Director of the company since November 14, 2008. A fellow of the Institute of Chartered Accountants of India, he has been associated with the LIC Group since 1984. During his 16-year tenure at LIC, he was responsible for driving and spearheading several key initiatives. As one of the founding members of LIC life, Mr. Parasnis has been responsible for setting up branches, driving sales and servicing strategy, leading recruitment, contributing to product launches and performance management system, overseeing new business and claims settlement, customer interactions etc. The Company places a lot of emphasis on its selection process for agent advisors, which comprises four stages - screening, psychometric test, career seminar and final interview. The agent advisors are trained in-house to ensure optimal control on quality of training. The company currently has around 12, 50,000 agent advisors at 712 offices across 389 cities. The company also has 36 referral tie-ups with banks, 24 partnership distribution and alliance marketing relationships each. LIC has put in place a unique hub and spoke model of distribution to deepen our rural penetration. This is the first time such a model has been put in place for rural marketing of insurance. LIC offers a suite of flexible products. It now has 37 products covering both life and health insurance and 8 riders that can be customized to over 800 combinations enabling customers to choose the policy that best fits their need besides this; the company offers 6 products and 7 riders in group insurance business. The company currently has more than 12,531 employees Members On The Board Of The Corporation Shri S.K.Roy (Chairman) Shri SushobhanSarker (ManagingDirector,LIC) 43

Shri S.B. Mainak ( Managing Director, LIC ) Shri ArvindMayaram (Secretary,DepartmentoEconomicAffairs)

Shri RajivTakru (Secretary, Department of Financial Services, Ministry of Finance, Govt. of India. ) Shri A.K. Roy ( Chairman cum Managing Director, GIC. ) Shri M.V. Tanksale ( Chairman & Managing Director, Central Bank of India ) Shri Anup Prakash Garg Shri Sanjay Jain Shri Ashok Singh Shri K.S. Sampath Shri Amardeep Singh Cheema Smt Manjari Kackar

Mission

"Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resourcesforeconomic development."

Vision

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"A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."

HELP US TO SERVE BETTER 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.

45

 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. Citibank Kiosks at Industrial Assurance Building, Churchgate, New India Building, Santacruz, Jeevan Shikha Building, Borivili are dedicated for collection of premiums through cheques. Days Of Grace: Policyholder should pay the premiums on due dates. However, a grace period of one month but not less than 30 days will be allowed for payment of yearly/half-yearly/quarterly premiums and 15 days for monthly premiums.

46

When the days of grace expire on a Sunday or a public holiday, the premium may be paid on the following working day to keep the policy in force. If the premium is not paid before the expiry of the days of grace, the policy lapses. Revival of Lapsed Policy: If the policy has lapsed, it can be revived during the life time of the life assured, within a period of five years from the date of the first unpaid premium but before the date of maturity subject to certain conditions. The Corporation offers three convenient schemes of revival viz., Ordinary Revival, Special Revival and Instalment Revival. Policies can also be revived under Loan-cum-Revival and SB-cum-Revival schemes. Request for revival may be made to the Branch Office servicing the policy.

Change of Address and Transfer of Policy Records:

The policyholder should immediately intimate the change of his/her address to the Branch Office servicing the policy. The correct address facilitates better service and quicker settlement of claims. Policy records can also be transferred from one Branch Office to another for servicing, as requested by the policyholder.

Loss of Policy Document:

The Policy Document is an evidence of the contract between the Insurer and the Insured. Hence the policyholder should preserve the Policy Bond till the contracted amount under it is settled.

47

 Loss of the Policy Document should be immediately intimated to the Branch Office where it is serviced.

Loans:
Loans are granted on policies to the extent of 90% of Surrender Value of the policies which are in force and 85% of the Surrender Value in case of policies which are paidup, inclusive of the cash value of bonus. The rate of interest charged at present is 9% p.a. payable half-yearly.

Loans are not granted for a period shorter than six months. The Conditions and Privileges printed on the back of the Policy Bond states whether a particular policy is with or without the loan facility.

Relief to Policyholders:
The Corporation generally allows concessions on payment of premiums, settlement of claims, issue of duplicate policies, etc when the policyholder are affected by natural calamities such as droughts, cyclones, floods, earthquakes, etc.

Nomination:
Nomination is a right conferred on the holder of a Policy of Life Assurance on his own life to appoint a person to receive policy moneys in the event of the policy becoming a claim by the assureds death. The Nominee does not get any other benefit except to receive the policy money on the death of the Life Assured. A nomination may be changed or cancelled by the life assured .

Assignment:

48

 Assignment means transfer of rights, title and interest. When an assignment is executed, all rights, title and interest in respect of the property assigned are immediately transferred to the Assignee/s and the Assignee/s become the owner/s of the policy subject to any lawful condition made in the assignment. Assignment can be either conditional or absolute. On assignment (other than to LIC), Nomination automatically stands cancelled. Hence, when such a policy is reassigned, the policyholder will have to make a fresh nomination to avoid delay in settlement of claim.

Survival Benefit/Maturity Claims:

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

Death Claims:
If the life assured dies during the term of the policy, death claim arises. The death of the policyholder should be immediately intimated in writing to the Branch Office where the policy is serviced along with the following particulars: The Number of the policies I. II. The name of the policyholder Death Certificate issued by concerned Authority 49

III. IV. V.

The date of death The cause of death and Claimants relationship with the deceased

On receipt of the intimation of death, necessary claim forms are sent by the Branch Office for completion along with instructions regarding the procedure to be followed by the claimant. The claims which have arisen after a period of three years are treated as non-early claims and settled within 30 days from the date of receipt of all requirements. The claims that have arisen within a period of two years from the date of commencement of the policy, are treated as early claims and investigation is compulsory in such cases. The claim is usually payable to the nominee/assignee or the legal heirs, as the case may be. However, if the deceased policyholder has not nominated/assigned the policy or if he/she has not made a suitable provision regarding the policy moneys by way of a Will, the claim is payable to the holder of a Succession Certificate or some such evidence of title from a Court of Law. The Corporation grants claims concessions under certain Plans whereby payment of full sum assured is made, subject to the deduction of unpaid premiums with interest till the date of death and unpaid premiums falling due before the next anniversary of the policy, in the event of the death of the life assured within a period of six months or one year from the date of the first unpaid premium, provided premiums have been paid for at least three years and five years respectively.

Claim Review Committee:

The Corporation settles a large number of Death Claims every year. Only in case of fraudulent suppression of material information is the liability repudiated. This is to ensure 50

that claims are not paid to fraudulent persons at the cost of honest policyholders. The number of Death Claims repudiated is, however, very small. Even in these cases, an opportunity is given to the claimant to make a representation for consideration by the Review Committees of the Zonal office and the Central Office. As a result of such review, depending on the merits of each case, appropriate decisions are taken. The Claims Review Committees of the Central and Zonal Offices have among their Members, a retired High Court/District Court Judge. This has helped providing transparency and confidence in our operations and has resulted in greater satisfaction among claimants, policyholders and public.

Insurance Ombudsman:
The Grievance Redressal Machinery has been further expanded with the appointment of Insurance Ombudsman at different centers by the Government of India. At present there are 12 centres operating all over the country.
Following type of complaints fall within the purview of the Ombdusman

any

partial

or

total

repudiation

of

claims

by

an

insurer;

any dispute in regard to premiums paid if payable in terms of the policy; any dispute on the legal construction of the policies in so far as such disputes relate to claims; insurance document to customers after receipt of premium.

Policyholder can approach the Insurance Ombudsman for the redressal of their complaints free of cost.

Initiatives in Policy Servicing Areas:

All 2048 Branches of LIC are fully computerized covering all policy servicing aspects to give prompt computerized services from new policy introduction, acceptance of renewal premium, revivals, loans, etc to final claims settlement. Green Channel facility has been introduced for the speedy completion of proposals.

51

 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, Citi Bank, Corporation Bank, Federal Bank and Bill desk.

Grievance Redressed Machinery:

Machinery for redressal of policyholders? Grievances exist in all the offices of the Corporation. These are headed by designated Officers who are available at their respective Offices every Monday between 2.30 pm and 4.30 pm. except holidays. Policyholder can approach these officers to get their grievances redressed.

The Designated Officers at the various offices of the Corporation are :

At Branch Office --- Sr./Branch Manager At Divisional Office --- Marketing Manager At Zonal Office --- Regional Manager (MT) At Central Office --- Executive Director (MT/IO/CRM)

INSURANCE PLANS As individuals it is inherent to differ. Each individual's insurance needs and requirements are different from that of the others. LIC's Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement. Bima Account 1 Bima Account 2

Endowment Plus

52

Jeevan Anurag CDA Endowment Vesting At 21 CDA Endowment Vesting At 18 Jeevan Kishore Child Career Plan Jeevan Ankur

Komal Jeevan Marriage Endowment Educational Annuity Plan Jeevan Chhaya Child Future Plan

Or

Jeevan Aadhar Jeevan Vishwas

The Endowment Assurance Policy The Endowment Assurance Policy-Limited Payment Jeevan Mitra(Double Cover Endowment Plan) Jeevan Mitra(Triple Cover Endowment Plan) Jeevan Anand New Janaraksha Plan Jeevan Amrit

Jeevan Shree-I Jeevan Pramukh

The Money Back Policy-20 Years The Money Back Policy-25 Years Jeevan Surabhi-15 Years Jeevan Surabhi-20 Years Jeevan Surabhi-25 Years Bima Bachat

53

Jeevan Bharati - I

The Whole Life Policy The Whole Life Policy- Limited Payment The Whole Life Policy- Single Premium Jeevan Anand Jeevan Tarang

Two Year Temporary Assurance Policy The Convertible Term Assurance Policy Anmol Jeevan-I Amulya Jeevan-I

Jeevan Saathi

54

Investment of LIC

Life Insurance Corporation invests only in safe debt instruments with the highest credit ratings.
Our current portfolio has almost 70% invested in GOI bonds, 25% in corporate bonds (AAA and AA rated bonds only). The balance 5% is invested in short-term cash instruments to meet working capital requirements. 55

IRDA has overarching rights to amalgamate companies and change the management to protect policyholder interests.

Span of Organization
Life Insurance Corporation has a strong growth focus. The company plans to significantly expand its distribution footprint by opening more than 100 new offices every year for next 34 years. The number of agent advisors is expected to touch 2, 00,000 from current 36,500. The growth in agency distribution will be complemented by strong growth in partnership distribution. The company currently has an equity base of Rs.1, 032 crore. To support this growth plan, the shareholders are committed to increase the capital base to Rs. 2,650 crores over the next 3-4 years. There are 13000 employees all over India and 55000 Agent advisors. CEO (Chief Executive Officer)

Channel Head

2 Vice President

M.P (Managing Partner)

SGO (Senior General Officer)

Partner

56

6 A.P (Associate Partner)

9 ADO/DO (Apprenticeship Development Office/ Divisional Office)

57

Chapter IV Data Analysis And Interpretation

58

DATA ANALYSIS
Respondents are taken from Private, Government and Business sectors
I. According to you, which have played a major role in the field of life insurance companies?

TABLE I: Insurance LIC HDFC ICICI Others CHART I: Pvt.Employees 10 5 3 2 Govt.Employees 13 3 3 1 Business Man 10 5 4 1

Analysis:
After analysing this data it is found that from the given three respective level of Pvt, Govt. and Business 10 out of 20 (30%), 13 out of 20 (39%) and 10 out of 20 (30%) are in favour of LIC, while 5 out of 20 (15%), 3 out of 20 (9%) and 5 out of 20 (6%),1 out of 20 (30%) and 1 out of 20 (30%) are in favour of other Pvt. Companies

II.

Which insurance companies have been successful to make strong base by advertisement? 59

TABLE II:

Insurance LIC HDFC ICICI Others CHART II:

Pvt.Employees 12 3 4 2

Govt.Employees 14 2 3 1

Business Man 12 4 3 1

Analysis:
After analysing this data it is found that from the given three respective level of Pvt, Govt. and Business 10 out of 20 (30%), 13 out of 20 (39%) and 10 out of 20 (30%) are in favour of LIC, while 5 out of 20 (15%), 3 out of 20 (9%) and 5 out of 20 (6%),1 out of 20 (30%) and 1 out of 20 (30%) are in favour of other Pvt. Companies

60

III.

Which insurance company has gained massive public support in the current fiscal year?

TABLE III

Insurance LIC HDFC ICICI Others

Pvt.Employees 12 3 4 2

Govt.Employees 14 2 3 1

Business Man 12 4 3 1

CHART III:

Analysis:
From the above table, it is found that from given three sector Private, Govt and Business 12 out of 20(36%), 14 out of 20(42%), 10 out of 20(30%), are in the favour of LIC out of 20 (9%), 2 out of 20 (6%) and 4 out of 20 (12%) are in favour of ICICI, whereas only 2 out of 20 (6), 2out of 20(6%) 1 and out of 20(3%) favour others company. IV. Do you think insurance policy in the direction of public welfare? 61

TABLE IV

Insurance Yes No

Pvt.Employees 13 7

Govt.Employees 16 4

Business Man 12 8

CHART IV:

Analysis:
The above table shows that from private sector 13 out of 20 (30%) agree and 7 out of 20 (21%) disagree, from govt sector 16 out of 20 (48%) think it right but 4 out of 20 (12%) dont think it so and from business man 12out of 20 (36%) are in favour of the above statement but out of 20 (24%) dont favour it.

Is retirement bond or pension policy launched by the number of private player as well as public sector company in the direction of secured old age? 62

TABLE V: Insurance Yes No Pvt.Employees 15 5 Govt.Employees 18 2 Business Man 13 7

CHART V:

Analysis:

It is obvious from the above table that 15 out of 20 (45%), 18 out of 20 (54%) and 12 out of 20 (39%) from the given three think retirement bend or pension policy a legitimate step in the direction of secure old age but 5 out of 20 (15%), 2 out of 20 (6%) and 7 out of 20 (21%) dont agree with the opinion of the majority class.

VI.

Do you think that risk coverage factor included in Insurance policy attracts general public toward the policy ? 63

TABLE VI:

Insurance Yes No

Pvt.Employees 12 8

Govt.Employees 16 4

Business Man 11 9

CHART IV:

Analysis:
From the above table it is found that 12 out of 20 (36%) from private sector 16 out of 20 (48%). From Govt. sector and 11 out of 20 (33%) thinks risk coverage factor attractive but rest 8 out of 20 (24%), 4 out of 20 (12%) and 9 out of 20 (27%) from the above them sector dont think it so encouraging towards saving trend whereas 3 out of 20(9%), 2 out of 20 (6%) and 4 out of 20 (12%) dont think it so.

64

VII.

What according to you, the term plan that only covers risk and doesnt cover maturity benefit on survival at the end of the term provides security cover over policy holders or a smart way of accumulative money from policy holders ?

TABLE VII

Pvt.Employees Security Cover Accumulative Money CHART VII: 11 9

Govt.Employees 15 5

Business Man 12 8

Analysis:
It the above data that 11 out of 20(33%), from the Pvt. Sector, 15 out of 20 (45%) from Govt. sector and 12 out of 20 (36%) think term plan as a security cover but 9 out of 20 (27%), 5 out of 20 (15%) and 8 out of 20 (24%) from the three respective group think it as a way of accumulating money insurance company.is obvious from

65

VIII. Do you think that the arrival of so many private companies in this insurance sector envisage a lot of choice to policy holder? TABLE VIII: Pvt.Employees Yes No CHART VIII: 16 4 Govt.Employees 18 2 Business Man 16 4

Analysis:
From analysing the above data it is found that 16 out of 20 (48%) from Pvt. Sector , 18 out of 20 (54%) from Govt. sector and 16 out of 20 (48%) think that the arrival of private players envisage a lot of choice to policy holder. But 4 out of 20 (12%), 2 out of 20(6%) and 4 out of 20(12%) dont think it so.

66

IX.

Do you agree that customer-centricity and transparency are the buzzword for success in this evolving industry?

TABLE IX: Pvt.Employees Yes No CHART IX: 18 2 Govt.Employees 20 Business Man 19 1

Analysis:
From this above data, it is found the 18 out of 20 (54%) from Pvt. Sector and 20 out of 20 (60%) from Govt. Sector 19 out of 20(57%) fom Business men agree with this statement whereas only 22 out of 20(6%) from Pvt. Sector and 1 out of 20 (3%) from Business men do not agree with this statement.

67

X.

Which are popular insurance plans these days?

TABLE X:

Type of Plan Term Insurance Plans Endowment Plans Pension Plans Child Plans Tax Saving Plans CHART X:

No. of Respondents 10 25 15 10 15

Analysis:
In above graph 10 out of 75 interested and like term insurance where only death cover no maturity value but 25 out of 75 interested in endowment plan and there after pension plans 15 out of 75 and then taxing saving plans and at last child plan with 5 out of 75.

INTREPRETATIONS

68

 Customers are less aware about the private insurance company in market. Some customer likes to join LICs because it is a Part-time job . Many professions like CA, tax planner wants corporate agency rather than to be a financial consultant. LIC is too selective in making a rather than to appoint any one like LIC. Customer doesnt want to join as financial consultant because its on commission basis and they want the job on salary basis. Educated customers are now vending towards private insurance Companies, due to the attractive packages and services provided by various new insurance companies.

LIC has created a branded image in 3-4 decades, due to which new insurance companies are facing trouble in capturing market share.

If the customers are joining lithe segment is more of tax consultant, investment for consultant and other people who are engaged in investment business that is because they want to diversity their portfolio. LIC is having good retention strategies for their financial consultant.

69

Chapter V Conclusions And Suggestions

CONCLUSION
70

After overhauling the all situation that boosted a number of Pvt. Companies associated with multinational in the Insurance Sector to give befitting competition to the established behemoth LIC in public sector, we come at the conclusion that :

There is very tough competition among the private insurance companies on the level of new trend of advertising to lull a major part of customers.

LIC is not left behind in the present race of advertisement.

The entry of the Pvt.players in the insurance sector has expanded the product segment to meet the different level of the requirement of the customers. It has brought about greater choice to the customers.

Private insurers have restricted reach to the customers.

LIC has vast market and very firm grip on its traditional customers and monopoly of life insurance products.

Bank assurance- that allows life insurers to leverage on the risk product through bank network was adopted by private players. But LIC will not left behind as picking up majority stake in the corporation Bank and large equity stake in the Oriental Bank of Commerce.

71

IRDA is also playing very comprehensive role by regulating norms mandating to private players in this sector, that increase the confidential level of the customers to the private players.

SUGGESTIONS

Premium allocation charge (initial charge) should be reduced to provide customer with better return.

Policy administration charge should be reduced to gain more advantage in the market.

Surrender charges should be reduced. More focus on Health plans

Increase term of life Partner Plus Plan.

Increase value of a unit in health plan.

Decrease the period of surrender in traditional plan

72

LIMITATIONS OF THE STUDY

The study is focused only in LIC Insurance Company Ltd.

Researchers find the difficulty in searching the appropriate advisor and respondent throughout the city

In this study the sample size is 270. The results might vary when the sample size values changes it.

Thus the respondents are not come forward to provide their feedback regarding their organisation than the result

73

74

Chapter VI Bibliography

75

BIBLIOGRAPHY
BROCHURES / INFORMATION BOOKLETS
Product List L.I.C. L.I.C. Annual Report, 2006 ICICI Annual Report, 2006 HDFC Annual Report, 2006 Malhotra Committee Report on Reforms in the Insurance Sector, 1993. The Insurance Regulatory and Development Authority Bill, 1999

NEWSPAPERS / MAGAZINES
The Economic Times The Insurance Times

Insurance Post

WEBSITES w.w.w.liclndia.com www.lrdaindia.org.com www.indiainfoline.com

76

 www.icici.com

77

Chapter VII Annexure

78

QUESTIONAIRE
Dear Sir/Madam, I am a student of DAV INSTITUTE OF MANAGEMENT, Faridabad. As part of the requirements for my MBA (II) Degree. I am required to do a research based project. Kindly spend a few minutes of your valuable time and fill in this questionnaire. Do you have a life insurance policy/investment plan in your name? o Yes o No

If yes which companys insurance policies do you hold? o MAX Life Insurance o o o o Aviva Life Insurance LIC ICICI Prudential Life Insurance Bharti Axa Life Insurance o Birla Sun Life Insurance o Bajaj Allianz Life Insurance o Tata AIG Life Insurance o ING Vysya Life Insurance o Others (specify name)

According to you have a Major role in the field of life insurance companies? o o LIC Others o HDFC o ICICI

Which insurance companies have been successful to make strong base by advertisement? o LIC o ICICI o HDFC o Others

Which insurance company has gained massive public support in the current fiscal year? o o LIC ICICI o HDFC o Others 79

Do you think insurance policy in the direction of public welfare? o Yes o No

Is retirement bond or pension policy launched by the number of private player as well as public sector company in the direction of secured old age?

Yes

o No

Do you think that risk coverage factor included in Insurance policy attracts general public toward the policy? o Yes o No

What according to you, the term plan that only covers risk and doesnt cover maturitybenefit on survival at the end of the term provides security cover over policy holders or a smart way of accumulative money from policy holders ? o Security Cover o Accumulative Money

Do you think that the arrival of so many private companies in this insurance sector envisage a lot of choice to policy holder? o Yes o No

Do you agree that customer-centricity and transparency are the buzzword for success in this evolving industry? o Yes o No

Which are popular insurance plans these days? o o o Term Insurance Unit Linkes Plans Tax Saving Plans o Endowment o Pension Plans o Child Plans 80

Personal Details :
Name Address Age Contact No. Profile of respondent: Student Housewife Working Professional : __________________________________________________ : __________________________________________________ : __________________________________________________ : __________________________________________________ Business Self-Employed Government Service Employee

Date:_______________

81