A Comprehensive Project Proposal On

MEASURING THE IMPACT OF PRIVATE LIFE INSURANCE PLAYERS ON THE LIFE INSURANCE CORPORATION OF INDIA [LIC]

Prepared By: Arpit Patel Paresh Dave Submitted To: Mr.Hiren Patel

S.R. Luthra Institute of Management, Surat 2009-2011

Introduction and Statement of the Problems

MEASURING THE IMPACT OF PRIVATE LIFE INSURANCE PLAYERS ON THE LIFE INSURANCE CORPORATION OF INDIA [LIC]

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972, Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other related Acts. With such a large population and the untapped market area of this population Insurance happens to be a very big opportunity in India. Today it stands as a business growing at the rate of 15-20 per cent annually. Together with banking services, it adds about 7 per cent to the countrys GDP .In spite of all this growth the statistics of the penetration of the insurance in the country is very poor. Nearly 80% of Indian populations are without Life insurance cover and the Health insurance. This is an indicator that growth potential for the insurance sector is immense in India. It was due to this immense growth that the regulations were introduced in the insurance sector and in continuation Malhotra Committee was constituted by the government in 1993 to examine the various aspects of the industry. The key element of the reform process was Participation of overseas insurance companies with 26% capital. Creating a more efficient and competitive financial system suitable for the requirements of the economy was the main idea behind this reform. Since then the insurance industry has gone through many sea changes .The competition LIC started facing from these companies were threatening to the existence of LIC .since the liberalization of the industry the insurance industry has never looked back and today stand as the one of the most competitive and exploring industry in India. The entry of the private players and the increased use of the new distribution are in the limelight today. The use of new distribution techniques and the IT tools has increased the scope of the industry in the longer run.

Research Objectives
To examine the current status, volume of competitions and challenges faced by the Life Insurance Corporation of India. To know the performance of the private life insurance players against lic. To analyze the life insurance services of LIC as well as private life insurance players. To know the market potential of lic against private life insurance players.

Limitations of the Study

Time period is one of the limitations because we need to complete the project within 60-

70 days or 2 month. We are not going take response from the every regions or part of the country for collecting the information to analyze data. As students we are not masters or experts of research activity hence it becomes limitations for us. We will have to rely on the information given by the respondents.

Short Literature Review or Survey

Rao (2007) reported, Insurance is a vital economic activity and there is an excellent scope for its growth in the emerging markets. The opening up of the insurance sector has raised high hopes among people both in India and abroad. Sabera (2007) indicated, The Government of India liberalized the insurance sector in March 2000, which lifted the entry restrictions for private insurance players, allowing foreign players to enter into the market and start their operations in India. The entry of private players helps in spreading and keeping the operation in the Indian insurance sector which in turn results in Restructuring and revitalizing of public sector companies.

Research Design & Hypothesis

Research Design: Exploratory Research Design
The exploratory studies are carried out to explore a subject. The main objective is to help in defining research problem and generate a set of hypothesis or research question which could be worked upon at a later stage. This research is carried out by using existing literature, survey of experienced individuals and analysis of selected case studies.

Hypothesis
It is assumed that the entry of the private life insurance players affect the performance of the LIC. It is assumed that the entry of the private life insurance players affect adversely to the LIC.

Data Sources
Primary data through questionnaire Secondary data through internet, books & magazines. .

Time budget
60 DAYS. (2 Month) Formulation of problem and setting objectives: 5 Days Literature review: 5 Days Find out variables for forming the questionnaire: 10 Days Forming of the questionnaire: 10 Days Data collection and data analysis: 15 Days Findings and conclusion: 10 Days Recommendations: 5 Days

Beneficiaries
This project report will help to those students for literature review who would like to work on the same topic in the future date. Project report would benefit to Life insurance Corporation of India LIC to take right action against the private life insurance players. Insurance industry would be benefited from the project report.

Research methodology
Types of research: Exploratory research. Modes of data: Primary data and Secondary data Data collection tool: Questionnaire Sample size: 200 Sampling plan: Non Probabilistic Sampling Method Convient Sampling Method

Statistical tools use for Research

Suitable statistical tools will be applicable or use for the analysis purpose. Theses will be identified after forming of questionnaire.

Tentative Chapter Plan

Chapter No. 1. Introduction 1.1 Industry Profile 1.2 About the Topic 2. 3. 4. 5. 6. 7. 8. Research Objective

Content

Limitations of the Study Research Methodology Data Analysis and Interpretation Findings Recommendation Conclusion Bibliography Annexure

Expected Contribution of the Study

This study helps to enhance the knowledge to readers about the impact of private life insurance players on LIC It helps to know the reasons for the LIC for losing its market share.

A Short Write up on the researchers

This research project is going to be preparing by two student or two researchers.

1. Arpit Patel
2. Paresh Dave

B.com from VNSGU B.B.A. from VNSGU

Bibliography
Relevant resources like internet, journals of various institutions, books, magazines, would be use to collect the information which helps in research project. These are clearly mentioned when the project gets over.