PREFAC E

Preparing a project of this nature is an arduous task

and I was fortunate enough to get support from a large
number o persons. I wish to express my deep sense of
gratitude to all those who generously helped in successful
completion of this report by sharing their invaluable time
and knowledge.
It is my proud and previledge to express my deep
regards to Respected HO Dr.Pramesh Gautam, Head
of epartment of !usiness "anagement # SVN.I.T.
SAGAR for allowing me to undertake this project.
I feel extremely exhilarated to have completed this
project under the able and inspiring guidance of MR.
SANDEEP JAIN he rendered me all possible help me
guidance while reviewing the manuscript in $nalising the
report.
I also extend my deep regards to my teachers #
family members # friends and all those whose
encouragement has infused courage in me to complete to
work successfully.
1
PRASHANT JAIN
MBA IV SEM.
ACKNOWLEDGEMENT
Preparing a project of this nature is an arduous task and I
was fortunate enough to get support from a large number o
persons. I wish to express my deep sense of gratitude to all those
who generously helped in successful completion of this report by
sharing their invaluable time and knowledge.
It is my proud and previledge to express my deep regards to
Respected # Head of epartment Dr.Pramesh Gautam,
epartment of !usiness "anagement # S.V.N.I.T. SAGAR for
allowing me to undertake this project.
I feel extremely exhilarated to have completed this project
under the able and inspiring guidance of He rendered me all
possible help me guidance while reviewing the manuscript in
$nalising the report.
I also extend my deep regards to my teachers # family
members # friends and all those whose encouragement has
infused courage in me to complete to work successfully.
PRASHANT JAIN
MBA IV SEM.
2
DELCLARATION BY THE CANDIDATE
ate %
I declare that the &IP PRO'()* R(POR* O+ ,I) O- I+I.#
!R.+)H &./.R on "arket &egmentation is nay own work
conducted under the supervision of MR. SANDEEP JAIN
evelopment O0cer ,I) &agar # *o the best of my knowledge the
report does not contain any work # which has been submitted for
the award of any degree # anywhere.
PRASHANT JAIN
MBA IV SEM.

3
CERTIFICATE
*he project report SIP PROJECT REPORT ON LIC
O INDIA , SAGAR been prepared by PRASHANT
JAIN MBA IV SEM. /uidance of MR. SANDEEP
JAIN De!e"o#me$t O%&er LIC for the partial
ful$llment of the egree of "!.
S'($ature of the S'($ature of the S'($ature of the
Su#er!'sor Hea) of the
De#artme$t
E*am'$er
4
CONTENTS
CERTIFICATE OF COMPANY... i
CERTIFICATE OF INSTITUTE.. ii
ACKNOWLEDGEMENT...iii
1. INTRODUCTION
2. ABOUT THE ORGANISATION
3. COMPANY PROFILE
4. DETAILS OF PRODUCTS
5. RESEARCH METHODOLOGY
6. OBECTI!E OF THE STUDY
". NEED OF THE STUDY
#. DATA COLLECTION METHODS
$. LIMITATION OF THE STUDY
1%. SCOPE OF THE STUDY
11. CUSTOMER SATISACTION
12. DATA ANALYSIS AND INTERPREATION
13. FINDINGS
14. CONCLUSION
15. BIBLIOGRAPHY
16. &UESTIONNAIRE
5
INTRODUCTION
LIFE INSURANCE IN INDIA
Life insurance in India made its debut well over 100 years ago. In our country, which is one of
the most populated in the world, the prominence of insurance is not as widely understood, as it
ought to be. What follows is an attempt to acquaint readers with some of the concepts of life
insurance, with special reference to LIC It should, however, be clearly understood that the
following content is by no means an ehaustive description of the terms and conditions of an LIC
policy or Its benefits or privileges. !or more details, please contact our branch or divisional
office. "ny LIC "gent will be glad to help you choose the life insurance plan to meet your needs
and render policy servicing.
What Is Life Insurance?
Life insurance is a contract that pledges payment of an amount to the person assured #or his
nominee$ on the happening of the event insured against. %he contract is valid for payment of the
insured amount during&
'%he date of maturity, or
'(pecified dates at periodic intervals, or
')nfortunate death, if it occurs earlier.
"mong other things, the contract also provides for the payment of premium periodically to the
Corporation by the policyholder. Life insurance is universally ac*nowledged to be an institution,
which eliminates +ris*+, substituting certainty for uncertainty and comes to the timely aid of the
family in the unfortunate event of death of the breadwinner. ,y and large, life insurance is
civili-ation.s partial solution to the problems caused by death. Life insurance, in short, is
concerned with two ha-ards that stand across the life/path of every person&
1. %hat of dying prematurely leaving a dependent family to fend for itself.
6
0. %hat of living till old age without visible means of support.
Customer satisfied with LIC service because the LIC totally concentrate customer relations and it
ma*es customers attract towards the LIC
Life Insurance Corporation of India #LIC$ is embar*ing on a number of customer relationship
management initiatives to retain its foothold in the mar*et, in the wa*e of private players inching
their way up in the life insurance sector.

%he Insurance behemoth is planning to tie/up with a number of ban*s to enable a payment
gateway wherein the policyholders can ma*e their premium payments via credit cards.

LIC is planning to start a new portal for its policyholders where a customer can log in, get details
on his1her policies, change the resident address when he1she shifts to a new place and even ta*e a
printout of the income ta certificate. %he portal is li*ely to be ready in a month.s time.

,esides, it has already started wor* on allotment of customer folio number to *now each
customer+s holding.
2%he allotment of customer folio number for all our holders will still ta*e a year.s time in this
-one,3 4 5anda, regional manager, information technology, LIC #south/central -one$, said.
7
ABOUT THE ORGANIZATION
Life Insurance in its modern form came to India from 6ngland in the year
1717. 8riental Life Insurance Company stated by 6uropeans in Calcutta was the first life
insurance company on Indian (oil. "ll the insurance companies established during that period
were brought up with the purpose of loo*ing after the needs of 6uropean community and Indian
natives were not being insured by these companies. 4owever, later with the efforts of eminent
people li*e ,abu 9uttylal (eal, the foreign life insurance companies started insuring Indian
lives. ,ut Indian lives were being treated as sub/standard lives and heavy etra premiums were
being changed on them. ,ombay 9utual Life "ssurance (ociety heralded the birth of first Indian
life insurance company in the year 17:0, and covered Indian lives at normal rates. (tarting as
Indian enterprise with highly patriotic motives, insurance companies came tito eistence to carry
the message of insurance and social security through insurance to various sectors of society.
,harat Insurance Company #17;<$ was also one of such companies inspired by natioalism. the
(wadeshi movement of 1;0=/1;0: gavwe rise to more insurance companies. %he )nited India in
9adras, 5ational Indian and 5ational Insurance in Calcutta and the 4industan Co/operative
Insurance Company too* its birth in one of the rooms of the >orasan*o, house of the great poet
?abindranath %agore, in Calcutta. %he Indian 9ercantile, @eneral "ssurance and (wadeshi Life
#later ,ombay Life$ were some of the companies established during the same period. Arior to
1;10. India had no legislation to regulate insurance business. In the year 1;10, the Life Insurance
Companies "ct, and the Arovident !und "ct were passed. %he Life Insurance Companies "ct,
1;10 made it necessary that the premium rate tables and periodical valuations of companies
should be certified by an actuary. ,ut the act discriminated between foreign and Indian
companies on many accounts, putting the Indian companies at a disadvantage.
%he first two decades of the twentieth century saw lot of growth in insurance
business. !rom BB companies with total business/in force as ?s. 00.BB crore, it rose to 1:<
companies with total business/in/force as ?s. 0;7 crore in 1;C7. During the mushrooming of
insurance companies many financially unsound concerns were also floated which failed
miserably. %he Insurance "ct 1;C7 was the first legislation governing not only life insurance but
8
also non/life insurance to provide strict state control over insurance business. %he demand for
nationali-ation of life insurance industry was made repeatedly in the past but it gathered
momentum in 1;BB when a bill to amend the Life Insurance "ct 1;C7 was introduced in the
Legislative "ssembly. 4owever, it was much later on the 1;th of >anuary, 1;=<, that life
insurance in India was nationali-ed. "bout 1=B Indian insurance companies, 1< non/Indian
companies and := provident were operating in India at the time of nationali-ation,
nationali-ation was accomplished in two stagesE initially the management of the companies was
ta*en over by means of an 8rdinance, and later, the ownership too by means of a comprehensive
bill. %he Aarliament of India passed the Life Insurance Corporation "ct on the 1;th of >une 1;=<,
and the Life Insurance Corporation of India was created on 1st (eptember, 1;=<, with the
obFective of spreading life insurance much more widely and in particular to the rural areas with a
view to reach all insurable persons in the country, providing them adequate financial cover at a
reasonable cost.
LIC had = -onal offices, CC divisional offices and 010 branch offices, apart from its corporate
office in the year 1;=<. (ince life insurance contracts are long term
contracts and during the currency of the policy it requires a variety of services need was felt in
the later years to epand the operations and place a branch office at each district headquarter, re/
organi-ation of LIC too* place and large numbers of new branch offices were opened. "s a result
of re/organi-ation servicing functions were transferred to the branches, and branches were made
accounting units. It wor*ed wonders with the performance of the corporation. It may be seen that
from about 000.00 crores of 5ew ,usiness in 1;=: the corporation crossed 1000.00 crores only
in the year 1;<;/:0, and it too* another 10 years for LIC to cross 0000.00 crore mar* of new
business. ,ut with re/organi-ation happening in the early eighties, by 1;7=/7< LIC had already
crossed :000.00 crore (um "ssured on new policies.
%oday LIC functions with 00B7 fully computeri-ed branch offices, 100 divisional offices, : -onal
offices and the corporate office. LIC.s Wide "rea 5etwor* covers 100 divisional offices and
connects all the branches through a 9etro "rea 5etwor*. LIC has tied up with some ,an*s and
(ervice providers to offer on/lint
premium collection facility in selected cities. LIC.s 6C( and "%9 premium payment facility is
an addition to customer convenience. "part from on/line Gios*s and IH?(, Info Centres have
been commissioned at 9umbai, "hmedabad, ,angalore, Chennai, 4yderabad, Gol*ata, 5ew
9
Delhi, Aune and many other cities. With a vision of providing easy access to its policyholders,
LIC has launched its ("%6LLI%6 ("9A"?G offices. %he satellite offices are smaller, leaner
and closer to the customer. %he digitali-ed records of the satellite offices will facilitate anywhere
servicing and many other conveniences in the future. LIC continues to be the dominant life
insurer even in theliberali-ed scenario of Indian insurance and is moving fast on a new growth
traFectory surpassing its own past records. LIC has issued over one crore policies during the
current year. It has crossed the milestone of issuing 1,01,C0,;== new policies by 1=th 8ct, 000=,
posting a healthy growth rate of 1<.<:I over the corresponding period of the previous year.
!rom then to now, LIC ha crossed many milestones and has set unprecedented performance
records in various aspects of life insurance business. %he same motives which inspired our
forefathers to bring insurance into eistence in this country inspire us at LIC to ta*e this message
of protection to light the lamps of security in as many homes as possible and to help the people
in providing security to their families.
(ome of the important milestones in the life insurance business in India are&
1717& 8riental Life Insurance Company, the first life insurance company on Indian
soil started functioning.
17:0& ,ombay 9utual Life "ssurance (ociety, the first Indian life insurance company
started its business.
1;10& %he Indian Life "ssurance Companies "ct enacted as the first statute to
regulate the life insurance business.
1;07& %he Indian Insurance Companies "ct enacted to enable the government to
collect statistical information about both life and non/life insurance businesses.
1;C7& 6arlier legislation consolidated and amended to by the Insurance "ct with the
obFective of protecting the interests of the insuring public.
1;=<& 0B= Indian and foreign insurers and provident societies are ta*en over by the
central government and nationali-ed. LIC formed by an "ct of Aarliament, vi-. LIC
"ct, 1;=<, with a capital contribution of ?s. = crore from the @overnment of India.
%he @eneral insurance business in India, on the other hand, can trace its roots
to the %riton Insurance Company Ltd., the first general insurance company
established in the year 17=0 in Calcutta by the ,ritish.
10
Life insurance Corporation of India #LIC$
%he Life insurance Corporation
was established about BB years ago with a view to provide an insurance cover against various
ris*s in life. " monolith then, the corporation, enFoyed a monopoly status and become
synonymous with life insurance. Its main asset is its staff strength of 1.0B la*hs employed and
0,0B7 branches and over si/la*hs agency force. LIC has hundred divisional offices and has
established etensive training
facility at all levels. "t the ape, is the 9anagement Development Institute, seven -onal %raining
Centre and C= sales %raining Centers. "t the industry level, along with the @overnment and the
@IC, it has helped establish the 5ational Insurance "cademy. It presently transacts individual
Life Insurance business, group Insurance business, social security schemes and Aensions, grants
housing loans through its subsidiary. "nd the mar*ets savings and Investment products through
its mutual fund. It pays off about ?s <,000 crores annually to=.< million policyholders

11
LIC OERATES ALL O!ER INDIA
12
C"#$an% $r"fi&e
%ype& Aublic limited company or @overnment/owned corporation
!ounded& (eptember 1, 1;=<
4eadquarters& 4eadquarters in 9umbai, India #Harious other locations in
India and abroad$
Gey people& %. (. HiFayan #Chairman$, D. G. 9ehta and %homas 9athew
#9anaging Directors$
Industry& Life insurance
Aroducts& Insurance and Aension Alans
6mployees& 8ver 10,00,000
Aarent& 5IL
(ubsidiaries& LIC 4ousing !inance Limited, etc.
Website& http://www.licindia.com
13
DETAILS OF RODUCTS
Aroducts of LIC
LIC ' (()*+ A+,-*.
B(+(/i01
LIC.s >eevan "5)?"@ is a with profits plan specifically designed to ta*e care of the
educational needs of children. %he plan can be ta*en by a parent on his or her wn life. ,enefits
under the plan are payable at prespecified durations irrespective of whether the Life "ssured
survives to the end of the policy term or dies during the term of the policy. In addition, this plan
also provides for an immediate payment of ,asic (um "ssured amount on death of the Life
"ssured during the term of the policy.
A11,-(2B(+(/i0
Aayment of 00I of the ,asic (um "ssured at the start of every year during last C policy years
before maturity. "t maturity, B0I of the ,asic (um "ssured along with reversionary bonuses
declared from time to time on full (um "ssured for the full term and the %erminal bonus, if any
shall be payable. !or eample, if term of the policy is 00 years, 00I of the (um assured will be
payable at the end of the 1:th, 17th, 1;th year and B0I of the (um "ssured along with the
reversionary bonuses and the terminal bonus, if any, at the end of the 00th year.
D(*03 B(+(/i0
Payment of an amount equal to Sum Assured under the basic plan immediately on the death of
the life assured.
LIC - eewan !isore
14
Product summary:
%his is an 6ndowment "ssurance Alan available for children of less than 10 years of age. %he
policy may be purchased by any of the parent1grand parent.
Commencement of ris" co#er:
%he ris* commences either after 0 years from the date of commencement of policy or from the
policy anniversary immediately following the completion of : years of age of child, whichever
is later.
Premiums:
Aremiums are payable yearly, half/yearly, quarterly or monthly throughout the term of the
policy or till earlier death of child.
$onuses:
%his is a with/profits plan and participates in the profits of the Corporation.s life insurance
business. It gets a share of the profits in the form of bonuses. (imple ?eversionary ,onuses are
declared per thousand (um "ssured annually at the end of each financial year. 8nce declared,
they form part of the guaranteed benefits of the plan. " !inal #"dditional$ ,onus may also be
payable provided policy has run for certain minimum period.
LIC % Childs Career Plan
Introduction:
&his plan is specially desi'ned to meet the increasin' educational and other needs of 'rowin'
children. It pro#ides the ris" co#er on the life of child not only durin' the policy term but also
durin' the e(tended term )i.e. * years after the e(piry of policy term+. A number of Sur#i#al
benefits are payable on sur#i#in' by the life assured to the end of the specified durations.
Options:
1ou may choose &um .ssured 2&...3# "aturity .ge# Policy *erm# "ode of
Premium payment and Premium 4aiver !ene$t.
Payment of Premiums:
1ou may pay the premiums regularly at yearly# half5yearly# 6uarterly or
15
through &alary deductions over the term of policy. Premiums may be paid
either for 7 years or up to 8 years before the policy term.
LIC - ee!an C""aya
Product summary:
%his is an 6ndowment "ssurance plan that provides financial protection against death
throughout the term of the plan. ,esides payment of (um "ssured immediately on death, one/
fourth of (um "ssured is payable at the end of each of last four years of policy term whether the
life assured dies or survives the term of the policy.
Premiums:
Aremiums are payable yearly, half/yearly, quarterly, monthly or through salary deductions as
opted by you throughout the term of the policy or till the earlier death.
LIC - Child ,uture Plan
Introduction:
&his plan is specially desi'ned to meet the increasin' educational- marria'e and other needs of
'rowin' children. It pro#ides the ris" co#er on the life of child not only durin' the policy term
but also durin' the e(tended term )i.e. * years after the e(piry of policy term+. A number of
Sur#i#al benefits are payable on sur#i#in' by the life assured to the end of the specified
durations.
Options:
1ou may choose &um .ssured 2&...3# "aturity .ge# Policy *erm# "ode of
Premium payment and Premium 4aiver !ene$t.
Payment of Premiums:
1ou may pay the premiums regularly at yearly# half5yearly# 6uarterly or
through &alary deductions over the term of policy. Premiums may be paid
either for 7 years or up to 8 years before the policy term.
16
LIC ' (()*+ S3-((
Product summary:
%his is an 6ndowment "ssurance plan offering the choice of many convenient premium/paying
terms. It provides financial protection against death throughout the term of plan with the
payment of maturity amount on survival to the end of the policy term.
Premiums:
Premiums are payable yearly# half5yearly# 6uarterly# monthly or through
&alary deductions# as opted by you# throughout the premium paying term or
till earlier death. .lternatively premium may be paid in one lump sum.
#uarantee$ %$$itions:
*he policy provides for the /uaranteed .dditions at the rate of Rs. 89:5 per
thousand &um .ssured for each completed year for $rst $ve years of the
policy.
LIC - &he .hole Life Policy
%his plan is mainly devised to create an estate for the heirs of the policyholder as the plan
basically provides for payment of sum assured plus bonuses on the death of the policyholder.
4owever, considering the increased longevity of the Indian population, the Corporation has
amended the above provision, thereby providing for payment of sum assured plus bonuses in
the form of maturity claim on completion of age 70 years or on epiry of term of B0 years from
date of commencement of the policy whichever is later.
%he premiums under the policy are payable up to age 70 years of the policyholder or for a term
of C= years whichever is later.
If the payment of premium ceases after C years, a paid/up policy for such reduced sum assured
will be automatically secured provided the reduced sum assured eclusive of any attached bonus
is not less than ?s.0=01/. (uch reduced paid/up policy is not entitled to participate in the bonus
declared thereafter but the bonuses already declared on the policy will remain attach, provided
the policy is converted in to a paid/up policy after the premiums are paid for = years.
LIC % Amulya ee#an & 8n Death during the %erm of the Aolicy& (um "ssured
On "aturity% +il
17
RESEARCH 'ETHODOLOG(
D6!I5I%I85 8! ?6(6"?C4
Acc"r)in* t"+ the A),ance) Learner-s Dicti"nar% "f Current En*&ish
2 " careful investigation or inquiry specially through search for new facts in any branch of
*nowledge.3
%o gain familiarity with a phenomenon or to achieve new insights into it.
%o portray accuracy the characteristics of a particular individual, situation or a group.
%o determine the frequency with which something occurs or with which it is associated
with something else.
%o test a hypothesis of a casual relationship between variables.
T(E OF RESEARCH
%he research design for my research is )escri$ti,e in nature where the end obFective is
predetermined and the obFective of my research is to find out the solution of predetermine
problem.
Descri$ti,e research is that research which is concern with describing the characteristic of a
particular individual or of a group. In descriptive research must be able to define clearly what we
want to measure and must find adequate method for measuring it along with a clear cut definition
of which he want to study. It includes surveys and fact findings enquiries of different *inds.
18
OB.ECTI!ES OF THE STUD(
%he main obFective of this study is to carry on brief study on 2Customer satisfaction survey on
insurance products of LIC
8ther obFectives of this proFect are as follows&
%o identify the insurance needs of the Indian population with respect to their emotional,
physical and financial conditions.
Comparative study of various insurance players in the mar*et
%o study the varied reasons of availing life insurance plans
%o clearly understand the rationale behind the investment in policies of LIC and private
sector insurance companies
%o test the awareness of customers on various aspects of life insurance policies offered by
LIC and other private sector insurance companies and find whether there is any relation
between them.
%he prime obFective of the study is to find out the level of satisfaction of a
customer #policy holders or beneficiary$ so far as the settlement of claims.
%o find out the procedure of claim policy holder or the beneficiary
NEED OF THE STUD(
19
%o study the customer satisfaction of LIC of India.
%o study the selling mechanism and various technique involved in the LIC of India
%o understand the consumer perceptions regarding the LIC of India.
%o study the consumer behavior and reaction towards the LIC of India
%o study the investors behavior and perception towards LIC of India


20
SA'LING 'ETHOD

SA'LE UNIT / %he sample unit which is used for collecting data about the ICICI retirement
policy is customer having the LIC of India.
("9AL6 %6C45IJ)6/ Deliberate technique is used in this study. Deliberate samplings
involve purposive or deliberate selection of particular unit of the universe for constituting a
sample.

DIFFERENT T(E OF SA'LE DESIGN
%here are different types of sample design based on two factors they are as follows&
"$ 8n the basis of presentation
,$ 8n the basis of selection of technique
8n the basis of presentation it can be classified as follows
a$ probability sampling
b$ non/probability sampling
on the basis of element selection technique it can be classified as follow&
a$ restricted selection technique
b$ unrestricted selection technique
,ut the sample design are basically two types&
a$ probability sampling
b$ non probability sampling
In this study we have used the probability sampling technique i.e selecting randomly from the
large no of universe.
21
DATA COLLECTION
%he data collection which is used in this proFect are as follow&
Arimary data/ this is the data collocated a fresh and for the first time. "nd thus happen to be
original in character for the purpose of research.
investigation at hand there are various methods of collecting primary data such as K
8bservation methods
Interview method
%hrough schedules etc.
I have selected questionnaire method collection the primary data.
0/ (econdary dataL
%his is the data collected usually start their investigation by eamining secondary data to see
whether their problems could problems could partly or wholly is solved without collecting costly
primary data
(econdary data provide starting points for research and offers by advantage of low and ready
availability. (econdary data can be collected from various sourced li*e.
Internal sources
@ovt. publications
Aeriodical and Fournals
Commercial data
,oo*s, maga-ine and newspapers
%elephones M internet
22
LI'ITATION OF STUD(
1. 8nly LIC of India have been studied
0. 8nly few customers were considered for the study
C. %he study was carried out in sagar only, hence the results cannot be etended to
5ational level.
B. !ew respondents are not cooperative enough owing to their busy
(chedule.
=. %ime was not enough to study the all aspects of the proFect report
23
SCOE OF STUD(
%he various scope of study are as follows&
o %he study was conducted at the macro level it can also be conducted at the national level
o %he study was improvement LIC of India it can also be used to study other insurance
plans of LIC of India.
o %he study can also be etended to study the mar*et share of the different insurance
company
o %he study can also be about the 4? system of LIC of India
o %he study can also be about the investors behavior towards LIC of India
24
ORGANISATION STR+CT+RE O LIC
Chairman

9anaging Director
6ecutives Directors
Chiefs
Nonal 9anagers
?egional 9anagers
Divisional 9anagers
100 (eniors Divisional 9anagers
9ar*eting 9anagers
(ales 9anagers
(enior ,ranch 9anagers #4ead of the ,ranch$
"ssistant ,ranch 9anagers (ells
Development 8fficers
25
i;erent .gent
UBLIC RELATION DEART'ENT
%he Aublic ?elation Department in LIC is divided into three maFor
categories. 5amely&
1. Communication Department
0. Crisis 9anagement Department
C. Aublicity Department
Chief Aublic ?elation 8fficer
A?8 #Communication Dept.$
A?8 #Crisis 9anagement Dept.$
A?8 #Aublicity Dept.$
26


)H.IR".+ O- ,I)


A),LIC ?6L"%I85(



C899)5IC"%I85 D6A"?965%
A),LICI%O D6A"?965%


C?I(I( 9"5"@6965% D6A"%965%
What is customer satisfactionP
Customer satisfaction refers to how satisfied customers are with the products or services they
receive from a particular agency. %he level of satisfaction is determined not only by the quality
and type of customer eperience but also by the customer.s epectations.
A cust"#er #a% 0e )efine) as s"#e"ne 1h"2
Q has a direct relationship with, or is directly affected by your agency and receives or relies on
one or more of your agency.s services or products. Customers in human services are commonly
referred to as service users, consumers or clients.
27
Q "n organisation with a strong customer service culture places the customer at the centre of
service design, planning and service delivery. Customer centric organisations will&
Q determine the customers epectations when they plan
Q listen to the customer as they design
Q focus on the delivery of customer service activities
Q Halue customer feedbac* when they measure performance.
Wh% is it i#$"rtant?
%here are a number of reasons why customer satisfaction is important in
Insurance Sect"r2
Q 9eeting the needs of the customer is the underlying rationale for the
eistence of community service organi-ations. Customers have a right to
quality services that deliver outcomes.
Q 8rgani-ations that strive beyond minimum standards and eceed the epectations of their
customers are li*ely to be leaders in their sect"r3
Q Customers are recogni-ed as *ey partners in shaping service development and assessing quality
of service delivery.
%he process for measuring customer satisfaction and obtaining feedbac* on organi-ational
performance are valuable tools for quality and continuous service improvement.Customer
satisfaction, a sinebuss term, is a measure of how products and services supplied by a company
meet or surpass customer epectation. It is seen as a *ey performance indicator within business
and is part of the four of a $alanced Scorecard.
In a competitive marketplace where businesses compete for customers#
customer satisfaction is seen as a key di;erentiator and increasingly has
become a key element of business strategy.
&1'
*here is a substantial body of empirical literature that establishes the
bene$ts of customer satisfaction for $rms.
Organi<ations need to retain existing customers while targeting non5
customers=
&2'
. "easuring customer satisfaction provides an indication of how
28
successful the organi<ation is at providing products and:or services to the
marketplace.
)ustomer satisfaction is an abstract concept and the actual manifestation of
the state of satisfaction will vary from person to person and product:service
to product:service. *he state of satisfaction depends on a number of both
psychological and physical variables which correlate with satisfaction
behaviors such as return and recommend rate. *he level of satisfaction can
also vary depending on other factors the customer# such as other products
against which the customer can compare the organi<ation>s products.
29
30
Customer (atisfaction in : (teps in LIC
It(s a )e** +no)n fa,t t"at no -usiness ,an e.ist )it"out ,ustomers/ In t"e
-usiness of 0e-site $esi1n2 it(s important to )or+ ,*ose*y )it" your
,ustomers to ma+e sure t"e site or system you ,reate for t"em is as ,*ose to
t"eir re3uirements as you ,an mana1e/ 4e,ause it(s ,riti,a* t"at you form a
,*ose )or+in1 re*ations"ip )it" your ,*ient2 ,ustomer ser!i,e is of !ita*
importan,e/ 0"at fo**o)s are a se*e,tion of tips t"at )i** ma+e your ,*ients
fee* !a*ue$2 )ante$ an$ *o!e$/
1. 6ncourage !ace/to/!ace Dealings
*his is the most daunting and downright scary part of interacting with a
customer. If you>re not used to this sort of thing it can be a pretty nerve5
wracking experience. Rest assured# though# it does get easier over time. It>s
important to meet your customers face to face at least once or even twice
during the course of a project.
31
"y experience has shown that a client $nds it easier to relate to and work
with someone they>ve actually met in person# rather than a voice on the
phone or someone typing into an email or messenger program. 4hen you do
meet them# be calm# con$dent and above all# take time to ask them what
they need. I believe that if a potential client spends over half the meeting
doing the talking# you>re well on your way to a sale.
43 Res$"n) t" 'essa*es r"#$t&% 5 6ee$ ("ur C&ients Inf"r#e)
*his goes without saying really. 4e all know how annoying it is to wait days
for a response to an email or phone call. It might not always be practical to
deal with all customers> 6ueries within the space of a few hours# but at least
email or call them back and let them know you>ve received their message
and you>ll contact them about it as soon as possible. (ven if you>re not able
to solve a problem right away# let the customer know you>re working on it.
" good eample of this is my Web host. %hey+ve had some trouble with server hardware which
has caused a fair bit of downtime lately. "t every step along the way I was emailed and told
eactly what was going on, why things were going wrong, and how long it would be before they
were wor*ing again. %hey also apologised repeatedly, which was nice. 5ow if they server had
Fust gone down with no eplanation I thin* I+d have been pretty annoyed and may have moved
my business elsewhere. ,ut because they too* time to *eep me informed, it didn+t seem so bad,
and I at least *new they were doing something about the problems. %hat to me is a prime
eample of customer service.
73 Be Frien)&% an) A$$r"acha0&e
. fellow &itePointer once told me that you can hear a smile through the
phone. *his is very true. It>s very important to be friendly# courteous and to
make your clients feel like you>re their friend and you>re there to help them
out. *here will be times when you want to beat your clients over the head
repeatedly with a blunt object 5 it happens to all of us. It>s vital that you keep
32
a clear head# respond to your clients> wishes as best you can# and at all times
remain polite and courteous.
83 Ha,e a C&ear&%9Define) Cust"#er Ser,ice "&ic%
*his may not be too important when you>re just starting out# but a clearly
de$ned customer service policy is going to save you a lot of time and e;ort
in the long run. If a customer has a problem# what should they do? If the $rst
option doesn>t work# then what? &hould they contact di;erent people for
billing and technical en6uiries? If they>re not satis$ed with any aspect of your
customer service# who should they tell?
*here>s nothing more annoying for a client than being passed from person to
person# or not knowing who to turn to. "aking sure they know exactly what
to do at each stage of their en6uiry should be of utmost importance. &o
make sure your customer service policy is present on your site 55 and
anywhere else it may be useful.
:3 Attenti"n t" Detai& ;a&s" <n"1n as =The Litt&e Niceties=>
Have you ever received a Happy !irthday email or card from a company you
were a client of? Have you ever had a personalised sign5up con$rmation
email for a service that you could tell was typed from scratch? *hese little
niceties can be time consuming and aren>t always cost e;ective# but
remember to do them.
(ven if it>s as small as sending a Happy Holidays email to all your customers#
it>s something. It shows you care= it shows there are real people on the other
end of that screen or telephone= and most importantly# it makes the
customer feel welcomed# wanted and valued.
?3 Antici$ate ("ur C&ient=s Nee)s 5 G" Out Of ("ur Wa% t" He&$ The# Out
33
&ometimes this is easier said than done@ However# achieving this supreme
level of understanding with your clients will do wonders for your working
relationship.
*ake this as an example% you>re working on the front5end for your client>s
exciting new ecommerce endeavour. 1ou have all the images# originals and
$les backed up on your desktop computer and the site is going really well.
uring a meeting with your client he:she happens to mention a hard5copy
brochure their internal marketing people are developing. .s if by magic# a
couple of weeks later a )5RO" arrives on their doorstep complete with high
resolution versions of all the images you>ve used on the site. . note
accompanies it which reads%
/0i- you mentioned a hard-copy brochure you were wor"in' on and I wanted to pro#ide you with
lar'e-scale copies of the 'raphics I1#e used on the site. 0opefully you1ll be able to ma"e use of
some in your brochure./
1our client is heartily impressed# and remarks to his colleagues and friends
how very helpful and considerate his 4eb designers are. "eanwhile# in your
o0ce# you lay back in your chair drinking your Ath cup of co;ee that
morning# safe in the knowledge this happy customer will send several
referrals your way.
@3 H"n"ur ("ur r"#ises
It>s possible this is the most important point in this article. *he simple
message% when you promise something# deliver. *he most common example
here is project delivery dates.
)lients don>t like to be disappointed. &ometimes# something may not get
done# or you might miss a deadline through no fault of your own. Projects
can be late# technology can fail and sub5contractors don>t always deliver on
time. In this case a 6uick apology and assurance it>ll be ready .&.P wouldn>t
go amiss.
34
Conclusion
)ustomer service# like any aspect of business# is a practiced art that takes
time and e;ort to master. .ll you need to do to achieve this is to stop and
switch roles with the customer. 4hat would you want from your business if
you were the client? How would you want to be treated? *reat your
customers like your friends and they>ll always come back.

35
DATA ANAL(SIS AND INTERRETATION
DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES
COMPANYS NAME NO.OF RESPONDENT SHARE (%)
L.I.C. 78 78
RELIANCE LIFE INSURANCE 3 3
ICICI PRUDENTIAL 10 10
SBI LIFE 7 7
HDFC
TOTAL 100 100
36
INTERPRETATION
78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by that percent
of respondents.
DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS
BENEFITS
NO.OF
RESPONDENTS
SHARE (%)
Cover Future Uncertainty 55 55
Tax Deductions 20 20
Future Investment 25 25
TOTAL 100 100
37
INTERPRETATION
55% of the respondents believe that covering future uncertainty is the biggest benefit of an insurance
policy.
Whereas !"% and !5% of the# believe that the other benefits are $a% deduction and future invest#ents
respectively.
DATA PROVIDES FEATURES OF INSURANCE POLICY THAT
ATTRACTED RESPONDENTS
FEATURE NO3OF
RESONDENTS
SHARE ;A>
9oney ,ac* @uarantee 1= 1=
Larger ?is* Coverance C: C:
6asy "ccess to "gents : :
Low Aremium C0 C0
Company.s ?eputation 11 11
%8%"L 100 100
38

INTERPRETATION
&a'ority of the respondent ()7%* found Larger risk coverance as the #ost attracted feature of the all.
39
DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS
POLICY TYPE NO. OF
RESPONDENTS
SHARE (%)
LIFE POLIC !5 !5
"O" LIFE POLIC 25 25
#OT$ %5 %5
40
INTERPRETATION
75% of the respondents have Life Insurance +olicy ,hile -5% have both. ($he % is calculated out of !8"
positive response*
41
DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE
RESPONSE NO. OF
RESPONDENTS
SHARE (%)
. saving tool 81 81%
. ta% saving device 7- 7-%
. tool to protect your fa#ily 1"" 1""%
INTERPRETATION
81% of the respondents have perception of Insurance being a saving tool.
.nd 7-% of the respondents have perception of Insurance being a ta% saving device.
/ut 1""% of the respondents are ,ith the vie, that Insurance is a tool to protect your fa#ily.
Fin)in*s
42
1$ Aerception of most of the respondents i.e., B0I is good, C0I is very good, 1;I
ecellent and only :I have a poor perception about LIC.
0$ CCI the respondents came to *now about LIC products from friends, 0;I from
various advertisement, 01I from family members and 1:I from other sources.
C$ 9aFority of the customers are satisfied with the service of the company. C;I say the
service is very good, C0I say its good, 1:I say its ecellent and only 10 are not
satisfied.
B$ 9aFority of the customers are satisfied with the beneficial schemes the company. <:I
say that LIC is giving beneficial schemes to its customers, 0BI they are not getting
any such schemes and ;I cant sat about these things
=$ 7CI of respondents say that the charges are reasonable and only 1:I are not happy
with the service charges
<$ .;CI of respondents prefer to pay by cheque, :I by draft and non of the respondents
prefer cash for paying premium.
:$ 7:I of respondents say that they are satisfied with the company.s service and only
1CI are not happy with the service.
7$ :<I of respondents say that they are satisfied with the product.s surrender value and
only 0BI are not happy.
;$ ;0I of respondents say that they are satisfied with the online facility and only 7I are
not satisfied.
10$ ;BI of respondents say that they are satisfied with the promotional schemes and only
7I are not satisfied.
43
CONCLUSION
Wor*ing with LIC Life Insurance for two months was a very nice and a good
learning eperience. It has helped me a lot learning about different *inds of investments and the
pros/corns of its. It has also helped me to *now about how wor*s in a corporate world is done.
%hough we had a very nice eperience but we had to face some problems even,
li*e we were not given any identity card by the company so sometime it became very difficult for
us to convince people that we are from the company and not an agent.9ostly small investors are
not satisfied with the charges of the LIC.
1. Customers are much more relying upon LIC.
0. Aeople donRt rely upon private insurance sector.
C. "ll products are not attractive to the customers so that *ind of products are very hard to
sale.
B. Less number of traditional plans that.s why people who really need traditional plans are
still not satisfied.
=. 9aFority of the customers are satisfied with the beneficial schemes the company.
<. 9aFority of the customers are satisfied with the service of the company
44
REFERENCE
B""<s2
9ar*eting 9anagement & Ahilip Gotler
9ar*eting ?esearch & C.?.Gothari
We0sites2
www.hdfcinsurance.com
www. icicipru life.com
www. lic india.com
BUESTIONNAIRE
45
2ame:333333.3 Address:33333333.
Profession333333 333333333333
A'e:33333333 333333333333
Contact 2o:33333..
1$What do you thin* about LIC product P
"$6cellent
,$Hery @ood
C$@ood
D$Aoor
0$ !rom where did you got information of LIC products P
"$!riends
,$!amily members
C$"dvetisements
D$8thers
C$ Whether LIC giving eficient service to its customers P
"$6cellent
,$Hery @ood
C$@ood
D$Aoor
B$ Whether LIC gives beneficial schemes to its eisting customers P
"$Oes
,$5o
C$Cant say
=$ Is the maintenance charges M fees are reasonableP
"$Oes
,$5o
46
<$ Which mode of payment do you prefer to pay your premium P
"$Draft
,$Cheque
C$Cash
:$ "re you satisfied with the service of LIC P
"$Oes
,$5o
7$ "re you satisfied with the product.s surren)er ,a&ue P
"$Oes
,$5o
;$ Whether LIC offering additional "n&ine faci&ities P
"$Oes
,$5o
10$ Whether LIC offering effective promotional schemes P
"$Oes
,$5o
11$ "ny furher suggession to serve you better P
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50
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55
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