PROJECT

REPORT
ON
CUSTOMERS
SATISFACTION IN

(SATISFACTION OF CUSTOMERS
WITH THE SERVICES OF THE LIFE
INSURANCE INDUSTRY IN INDIA
WITH SPECIAL REFERENCE OF LIC)

P RE F AC E
The field of insurance has taken a giant
leap at the
threshold of twentieth century. Insurance
have
become an integral part of life of man all
over the
globe. The proverb Need is the mother of
invention is proving equally correct in
case of
insurance.

Insurance have already had a considerable

impact
on

many

aspects

of

our

society.

This

project on
life Insurance corporation of India deals
with the
automation of various activities done in
insurance
like how the insurance companies doing
there
business and what is the feature of life
insurance.

ACKNO WLEDGEMENT

We
are
hearty
grateful
to
Mr.
.sir
(director). They have always been an invaluable
source of inspiration had work, sincerity and
dedication.
It gives me immense pleasure in submitting this
project on Life Insurance Corporation of India.
I
have developed this project in partial fulfillment
of
b.b.a 6th sem from sarswati institute of
management and technology
I would like to express my sincere ineptness to
my
Project Guide mrs preeti ma,am for his
constant guidance and valuable support during
the
project work. Encouragement and excellent
guidance
in the successful completion of the project
work.
And of course nothing could have come true
without
the support of my family, friends and all the
classmates for their constant encouragement
and
useful tips through out my project. I will always

grateful to them.

Student name-

Contents
Chapter 1- introduction
And objective
Chapter 2-industry profile
Chapter 3-company profile
Chapter 4-subject matter
Introduction of
topic
Research
methodology

Chapter 5- dat analysis and

interpretation
Chapter 6-conclusion
Cchapter7-recommentation
Chapter8- bibliography

Chapter
1

INTRODUCTION

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 exhaustive description of the terms and conditions of an LIC policy
or
Its benefits or privileges.
For more details, please contact our branch or divisional office. Any LIC
Agent
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.
The contract is valid for payment of the insured amount during:
The date of maturity, or
Specified dates at periodic intervals, or
Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium
periodically to the Corporation by the policyholder. Life insurance is
universally
acknowledged to be an institution, which eliminates 'risk', substituting
certainty
for uncertainty and comes to the timely aid of the family in the unfortunate
event
of death of the breadwinner. By and large, life insurance is civilizations
partial
solution to the problems caused by death. Life insurance, in short, is
concerned
with two hazards that stand across the life-path of every person:
1. That of dying prematurely leaving a dependent family to fend for itself.
2. That of living till old age without visible means of support.

Customer satisfied with LIC service because the LIC totally

concentrate customer relations and it makes customers
attract towards the LIC

LIC

moves

towards

better

customer

relations
Plans to start a new portal for its policyholders
Our Regional Bureau / Hyderabad September 07, 2005

Life Insurance Corporation of India (LIC) is embarking on a number of customer relationship

management initiatives to retain its foothold in the market, in the wake of private players inching
their way up in the life insurance sector.
The Insurance behemoth is planning to tie-up with a number of banks to enable a payment
gateway wherein the policyholders can make 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 his/her policies, change the resident address when he/she shifts to a new place and even take
a printout of the income tax certificate. The portal is likely to be ready in a months time.
Besides, it has already started work on allotment of customer folio number to know each
customer's holding.
The allotment of customer folio number for all our holders will still take a years time in this
zone, H Nanda, regional manager, information technology, LIC (south-central zone), said.
The electronic clearance system that we have launched at Hyderabad, Bangalore, Vijayawada
and Visakhapatnam, has been doing very well. Here the customers premium is automatically
debited from his account at the time of payment, he added. Shortly, the zone will also see the
launch of this system in Mysore, Mangalore and Hubli.
This month, we will also be setting up five satellite branches in the zone, with two being in
Hyderabad and three in Bangalore, A K Sahoo, regional manager (marketing), LIC (south-central
zone), said at a press conference organised on the occasion of the beginning of the golden
jubilee year for LIC.
Regarding the recently launched Bima Gold policy, a money-back policy with premium payment
options, the corporation plans to sell 15 lakh policies this year in the south central zone with the
national figure being one crore.
LIC also plans to launch three-four products this year with one of these being unit-linked
insurance plan in October. As on August 31, 2005, the zone has issued 12,47,795 policies under
new business.

OBJECTIVES OF THE STUDY

The main objective of this study is to carry on brief study on
Customer
satisfaction survey on insurance products of LIC
Other objectives of this project are as follows:
To 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 market

To study the varied reasons of availing life insurance plans

To

clearly

understand

the

rationale

behind

the

investment in policies of LIC and private sector insurance

companies
To 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.
The prime objective 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.
To find out the procedure of claim policy holder or the
beneficiary

Chapter 2

Industry
profile

Industry profile
ABOUT THE ORGANIZATION
Life Insurance in its modern form came to India from England in the
year
1818. Oriental Life Insurance Company stated by Europeans in
Calcutta was the first
life insurance company on Indian Soil. All the insurance companies
established
during that period were brought up with the purpose of looking
after the needs of

European community and Indian natives were not being insured by

these companies.
However, later with the efforts of eminent people like Babu Muttylal
Seal, the foreign
life insurance companies started insuring Indian lives. But Indian
lives were being
treated as sub-standard lives and heavy extra premiums were being
changed on them.
Bombay Mutual Life Assurance Society heralded the birth of first
Indian life
insurance company in the year 1870, and covered Indian lives at
normal rates.
Starting

as

Indian

enterprise

with

highly

patriotic

motives,

insurance companies came

tito existence to carry the message of insurance and social security
through insurance
to various sectors of society. Bharat Insurance Company (1896) was
also one of such
companies inspired by natioalism. the Swadeshi movement of 19051907 gavwe rise
to more insurance companies. The United India in Madras, National
Indian and
National Insurance in Calcutta and the Hindustan Co-operative
Insurance Company
took its birth in one of the rooms of the Jorasanko, house of the
great poet
Rabindranath Tagore, in Calcutta. The Indian Mercantile, General
Assurance and
Swadeshi Life (later Bombay Life) were some of the companies
established during

the same period. Prior to 1912. India had no legislation to regulate

insurance business.
In the year 1912, the Life Insurance Companies Act, and the
Provident Fund Act were
passed. The Life Insurance Companies Act, 1912 made it necessary
that the premium
rate tables and periodical valuations of companies should be
certified by an actuary.
But the act discriminated between foreign and Indian companies on
many accounts,
putting the Indian companies at a disadvantage.
The first two decades of the twentieth century saw lot of growth in
insurance
business. From 44 companies with total business-in force as Rs.
22.44 crore, it rose to
176 companies with total business-in-force as Rs. 298 crore in 1938.
During the
mushrooming of insurance companies many financially unsound
concerns were also
floated which failed miserably. The Insurance Act 1938 was the first
legislation
governing not only life insurance but also non-life insurance to
provide strict state
control over insurance business. The demand for nationalization of
life insurance
industry

was

made

repeatedly

in

the

past

but

it

gathered

momentum in 1944 when a

bill to amend the Life Insurance Act 1938 was introduced in the
Legislative
Assembly. However, it was much later on the 19th of January, 1956,
that life insurance

in India was nationalized. About 154 Indian insurance companies, 16

non-Indian
companies and 75 provident were operating in India at the time of
nationalization,
nationalization

was

accomplished

in

two

stages;

initially

the

management of the
companies was taken over by means of an Ordinance, and later, the
ownership too by
means of a comprehensive bill. The Parliament of India passed the
Life Insurance
Corporation Act on the 19th of June 1956, and the Life Insurance
Corporation of India
was created on 1st September, 1956, with the objective 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 5 zonal offices, 33 divisional offices and 212 branch offices,
apart
from its corporate office in the year 1956. Since 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 expand the operations and place a
branch office at each
district headquarter, re-organization of LIC took place and large
numbers of new
branch offices were opened. As a result of re-organization servicing
functions were

transferred to the branches, and branches were made accounting

units. It worked
wonders with the performance of the corporation. It may be seen
that from about
200.00 crores of New Business in 1957 the corporation crossed
1000.00 crores only in
the year 1969-70, and it took another 10 years for LIC to cross
2000.00 crore mark of
new business. But with re-organization happening in the early
eighties, by 1985-86
LIC had already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices,
100
divisional offices, 7 zonal offices and the corporate office. LICs
Wide Area Network
covers 100 divisional offices and connects all the branches through
a Metro Area
Network. LIC has tied up with some Banks and Service providers to
offer on-lint
premium collection facility in selected cities. LICs ECS and ATM
premium payment
facility is an addition to customer convenience. Apart from on-line
Kiosks and IVRS,
Info Centres have been commissioned at Mumbai, Ahmedabad,
Bangalore, Chennai,
Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a
vision of
providing easy access to its policyholders, LIC has launched its
SATELLITE
SAMPARK offices. The satellite offices are smaller, leaner and closer
to the

customer. The digitalized 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 theliberalized
scenario of
Indian insurance and is moving fast on a new growth trajectory
surpassing its own
past records. LIC has issued over one crore policies during the
current year. It has
crossed the milestone of issuing 1,01,32,955 new policies by 15th
Oct, 2005, posting a
healthy growth rate of 16.67% over the corresponding period of the
previous year.
From then to now, LIC ha crossed many milestones and has set
unprecedented
performance records in various aspects of life insurance business.
The same motives
which inspired our forefathers to bring insurance into existence in
this country inspire
us at LIC to take 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.
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 nationalized. 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.
Life insurance Corporation of India (LIC)
The Life insurance Corporation
was established about 44 years ago with a view to provide an
insurance cover against
various risks in life. A monolith then, the corporation, enjoyed a
monopoly status and

become synonymous with life insurance. Its main asset is its staff
strength of 1.24 lakhs
employed and 2,048 branches and over six-lakhs agency force.
LIC has hundred divisional offices and has established extensive
training
facility at all levels. At the apex, is the Management Development
Institute, seven zonal
Training Centre and 35 sales Training Centers. At the industry level,
along with the
Government and the GIC, it has helped establish the National
Insurance Academy. It
presently

transacts

individual

Life

Insurance

business,

group

Insurance business, social

security schemes and Pensions, grants housing loans through its
subsidiary. And the
markets savings and Investment products through its mutual fund.
It pays off about Rs
6,000 crores annually to5.6 million policyholders

LIC OPERATES ALL OVER INDIA

OBJECTIVES OF LIC

Spread Life Insurance widely and in particular to the rural

areas and to the
socially and economically backward classes with a view to
reaching
allinsurable

persons

in

the

country

and

providing

them

adequate financial
cover against death at a reasonable cost.

Maximize

mobilization

of

people

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
moneys belong to the policyholders.

Act as trustees of the insured public in their individual and

collective
capacities.

Meet the various life insurance needs of the community

that would arise in the
changing social and economic environment.

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

agent

and

employees

of

the

corporation a sense of
participation, pride and job towards achievement of Corporate
objective.

MISSION/VISION
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 resources for economic development.
Vision
A

trans-nationally

competitive

financial

conglomerate

of

significance to societies
and Pride of India.
LIC of India is the one and only public sector life insurance Company
in India.
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.

Chapter 3

Company profile

Company profile

Type: Public limited company or Government-owned corporation

Founded: September 1, 1956
Headquarters: Headquarters in Mumbai, India (Various other locations in
India and abroad)
Key people: T. S. Vijayan (Chairman), D. K. Mehta and Thomas Mathew
(Managing Directors)
Industry: Life insurance
Products: Insurance and Pension Plans
Employees: Over 10,00,000
Parent: NIL
Subsidiaries: LIC Housing Finance Limited, etc.
Website: http://www.licindia.com

Products of LIC
LIC - Jeevan Anurag

Benefits

LICs Jeevan ANURAG is a with profits plan specifically

designed to take care of the educational needs of
children. The plan can be taken by a parent on his or her
own life. Benefits under the plan are payable at
prespecified durations irrespective of whether the Life
Assured 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 Basic Sum Assured
amount on death of the Life Assured during the term of
the policy.

AssuredBenefit
Payment of 20% of the Basic Sum Assured at the start of
every year during last 3 policy years before maturity. At
maturity, 40% of the Basic Sum Assured along with

reversionary bonuses declared from time to time on full

Sum Assured for the full term and the Terminal bonus, if
any shall be payable. For example, if term of the policy is
20 years, 20% of the Sum assured will be payable at the
end of the 17th, 18th, 19th year and 40% of the Sum
Assured along with the reversionary bonuses and the
terminal bonus, if any, at the end of the 20th year.

Death Benefit
Payment of an amount equal to Sum Assured under the basic plan immediately
on the death of the life assured.

LIC - Jeewan Kisore

Product summary:
This is an Endowment Assurance Plan available for
children of less than 12 years of age. The policy may be
purchased by any of the parent/grand parent.

Commencement of risk cover:

The risk commences either after 2 years from the date of
commencement of policy or from the policy anniversary
immediately following the completion of 7 years of age of

child, whichever is later.

Premiums:
Premiums are payable yearly, half-yearly, quarterly or
monthly throughout the term of the policy or till earlier
death of child.

Bonuses:
This is a with-profits plan and participates in the profits
of the Corporations life insurance business.

It gets a

share of the profits in the form of bonuses. Simple

Reversionary Bonuses are declared per thousand Sum
Assured annually at the end of each financial year. Once
declared, they form part of the guaranteed benefits of
the plan. A Final (Additional) Bonus may also be payable
provided policy has run for certain minimum period.

LIC Childs Career Plan

Introduction:
This plan is specially designed to meet the increasing
educational and other needs of growing children. It
provides the risk cover on the life of child not only during
the policy term but also during the extended term (i.e. 7
years after the expiry of policy term). A number of
Survival benefits are payable on surviving by the life
assured to the end of the specified durations.

Options:
You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of
Premium payment and Premium Waiver Benefit.

Payment of

Premiums:

You may pay the premiums regularly at yearly, half-yearly, quarterly or

through Salary deductions over the term of policy. Premiums may be paid either
for 6 years or up to 5 years before the policy term.

LIC - Jeevan Chhaya

Product summary:
This is an Endowment Assurance plan that provides
financial protection against death throughout the term of
the plan. Besides payment of Sum Assured immediately
on death, one-fourth of Sum Assured 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:
Premiums 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 Future Plan

Introduction:
This plan is specially designed to meet the increasing
educational,

marriage

and

other

needs

of

growing

children. It provides the risk cover on the life of child not

only during the policy term but also during the extended
term (i.e. 7 years after the expiry of policy term). A
number of Survival benefits are payable on surviving by
the life assured to the end of the specified durations.

Options:
You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of
Premium payment and Premium Waiver Benefit.

Payment of

Premiums:

You may pay the premiums regularly at yearly, half-yearly, quarterly or

through Salary deductions over the term of policy. Premiums may be paid either
for 6 years or up to 5 years before the policy term.

LIC - Jeevan Shree

Product summary:
This is an Endowment Assurance 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, half-yearly, quarterly, monthly or through Salary
deductions, as opted by you, throughout the premium paying term or till earlier
death. Alternatively premium may be paid in one lump sum.

Guaranteed

Additions:

The policy provides for the Guaranteed Additions at the rate of Rs. 50/- per
thousand Sum Assured for each completed year for first five years of the policy.

LIC - The Whole Life Policy

This 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. However,
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 80 years or on expiry of term of 40
years from date of commencement of the policy whichever is later.
The premiums under the policy are payable up to age 80 years of
the policyholder or for a term of 35 years whichever is later.
If the payment of premium ceases after 3 years, a paid-up policy
for such reduced sum assured will be automatically secured
provided the reduced sum assured exclusive of any attached bonus
is not less than Rs.250/-. Such 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 5 years.

LIC Amulya Jeevan

: On Death during the Term of

the Policy: Sum Assured

On Maturity:

Nil

RESTRICTIVE CONDITIONS
Minimum age at entry

: 18 years (completed)

Maximum age at entry

: 60 years (nearest birthday)

Maximum

age

at

maturity

: 70 years (nearest birthday)

Minimum Policy Term

: 5 years

Maximum Policy term

: 35 years

Minimum Sum Assured

: Rs.25,00,000/-

Maximum Sum Assured

: No Upper Limit

(Policies will be issued in multiples of Rs.100,000/- for Sums Assured

more than the minimum Sum Assured)
Mode of premium
: Yearly, Half-yearly & Single
payment

Premium

ORGANISATION STRUCTURE OF LIC

Chairman
Managing Director
Executives Directors
Chiefs
Zonal Managers
Regional Managers
Divisional Managers
100 Seniors Divisional Managers
Marketing Managers
Sales Managers
Senior Branch Managers (Head of the
Branch)
Assistant Branch Managers Sells
Development Officers

Different Agent
PUBLIC RELATION DEPARTMENT
The Public Relation Department in LIC is divided into three major
categories. Namely:
1. Communication Department
2. Crisis Management Department
3. Publicity Department

Chief Public Relation Officer

PRO (Communication Dept.)

PRO (Crisis Management Dept.)

PRO (Publicity
Dept.)

CHAIRMAN OF LIC
PUBLIC
RELATIONS

COMMUNICATION DEPARMENT

DEPARMENT

PUBLICITY

CRISIS MANAGEMENT DEPATMENT

CHIEF PUBLIC RELATION OFFICER

The Chief Public Relation Officer of LIC is Mr. M. V. Kulkarni. He heads the
PR department. The above three committees are under the PRO. The PRO is
responsible for the overall functioning of the PR department. He has to
monitor
the smooth functioning of the three departments.

RESPONSIBILITIES OF CHIEF PUBLIC RELATION OFFICER :1. PR represents whole organization.

2. Should know how to behave in a certain situation.
3. He is not a person, he is representative.
4. Should know how to create enthusiasm.
5. In crisis he has to give feedback as soon as possible.
OBJECTIVES AND FUNCTIONS OF CHIEF PUBLIC RELATION OFFICER:-

The PRO is directly answerable to the Chairman Shri. T.S. Vijayan.

The PRO looks after all the activities of the three departments all over
India.

Also he has to keep in close touch with the over-seas PR departments

of LIC.

All the policies implemented in India are informed to other PROs of the
over-seas branches of LIC.

The PRO monitors the norms and values of all the branches.
The new rules and regulations in India are informed to the PROs of the

over-seas branches.

The PRO also holds regular workshops for the top management
employees to motivate them to lift the spirit of the work culture.

The PRO also has to provide information about latest policies to the
communication department and ask them to public or air it through
various mediums.

Since a major share of workload of LIC is in the public sector, the PRO
has to look after social responsibility as well as maintaining the image of the
company.

COMMUNICATION DEPARTMENT
The PRO of this Department is an external PR.
He looks after:-

Arranging press conferences, press releases and is in constant contact

with the media.

He is also responsible for monitoring the overseas communications.

The Communication Department PRO has to make arrangements for the
guests and their overall honors. The conversations with the guests are
directly done by the Communication Department PRO.

The PRO from this department should always keep a close eye on the
latest happenings in the market. Any social issue at any area is a news to
be worked out for him.

He reports directly to the Chief PRO of the company.

The Press conference usually includes the CEO of the company, the Chief
PRO and the Communication Dept. PRO.

If the case is of crisis, then only is the Crisis management Dept PRO
present for the Press conference.

Since LIC is closely related with the Public Sector, the Communication
Dept. PRO has to also be in a close contact with the government officials.

 He also has to motivate the employees in his department for constant

progress in the strategies for communication.
In short, the communication Department PRO ensures that there is no
communication gap between the company and the external concerned
bodies.
(recent press releases of LIC issued by Communication Department PRO
enclosed).

CRISIS MANAGEMENT DEPARTMENT

The PRO in this department is an internal one. From the overall history of
LIC, it is seen that the company has never been into any major crisis. This
itself
is one of the best achievements.
He is answerable to the Chief Public Relation Officer.
The PRO from crisis management, though is here to handle crisis, he has
been
assigned many other internal responsibilities.

Motivating the lower employees, sales executives and sales and

marketing employees.

Building up a smooth communication between the Blue Collar and the

White Collar.

Arranging small workshops for all the employees.

He also has to know the issues going within the other departments so that
these issues are solved before they create crisis.
The strategy used by the PR here for crisis management is:Wash the utensil before having food in it.
Thus all the employees right from the day of joining are kept in close

contact with the Crisis Management Dept. And regular workshops help to
restrict
cases like Corruption. With a company so closely associated with the
government, restricting such practices is very difficult task.

PUBLICITY DEPARTMENT
The PRO of the publicity Department is an External PR.
This department was formed due to the fall of sales in the 1999. This fall was
due
to the emergence of the foreign insurance companies and their advertising
strategies. Initially, the ads shown by LIC always said no worry even after
death. All the ads portrayed death. The other insurance companies came up
with the idea that insurance is for happy life. Thus the sales of LIC went
down as
people liked the idea of Life more than Death.
Hence a separate publicity department was formed which worked only for
publicity strategies. Initially it was looked up by the Communication
Department.
Today the publicity department PRO has to see to it that all the ads running
are
creating effect. The PRO is the one who along with the Marketing
department
looks after the strategies for publicity. He is also to carry out various
campaigns.
The very recent campaign is known as Zindagi Express.
The Zindagi Express is a term that has been associated to the life of LIC.
Just as humans celebrate their 50 years of life, even LIC is celebrating its life.
and when any person has done a lot in his life, he is capable of writing an
Autobiography. Thus Zindagi Express is an Autobiography by LIC.
They had started this unique campaign of auto biography from Delhi and

will cover the entire nation and end up in Delhi again. During this journey
they
explain what all LIC has done for publics and what all it still intends to do

To satisfy the consumers in lic they make effective

public relations and consumer relations
S.W.O.T. ANALYSIS OF LIC

A proper S.W.O.T. analysis of

LIC has also been conducted to know better about the position, growth, and
upcoming future and prospective of the company.

STRENGTHS

LIC is on 1st rank among the Insurance player.

Long-term plans of LIC are the main strength.

After sales services.

Products cost are very low.

Customer does not believe on private company.

WEEKNESS
Low interest rate

OPPORTUNITIES

Good brand promotion.

1/2nd- % insurance has been covered.

THREATS

Competitors.

Entry of Private Insurance banks..

Chapter
4

Subject
matter
Introduction of
topic

Research
methodology
Subject matter
Introduction of topic
What is customer satisfaction?

Customer satisfaction refers to how satisfied customers

are with the
products or services they receive from a particular agency.
The level of
satisfaction is determined not only by the quality and type of
customer
experience but also by the customers expectations.

A customer may be defined as someone who:

has a direct relationship with, or is directly affected by your
agency and
receives or relies on one or more of your agencys services or

products.

Customers

referred to as

in

human

services

are

commonly

service users, consumers or clients.

An organisation with a strong customer service culture

places the
customer at the centre of service design, planning and service
delivery. Customer centric organisations will:

determine the customers expectations when they plan

listen to the customer as they design
focus on the delivery of customer service activities

Value

customer

feedback

when

they

measure

performance.

Why is it important?
There are a number of reasons why customer satisfaction is
important in

Insurance Sector:
Meeting the needs of the customer is the underlying
rationale for the
existence of community service organizations. Customers have
a right to

quality services that deliver outcomes.

Organizations that strive beyond minimum standards and
exceed the

expectations of their customers are likely to be leaders in

their

sector.
Customers are recognized as key partners in shaping service
development and assessing quality of service delivery.
The process for measuring customer satisfaction and
obtaining feedback on
organizational 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 expectation. It is seen as a key performance
indicator within business and is part of the four of a Balanced Scorecard.
In a competitive marketplace where businesses compete for customers,
customer satisfaction is seen as a key differentiator and increasingly has become
a key element of business strategy.[1]
There is a substantial body of empirical literature that establishes the benefits of
customer satisfaction for firms.
Organizations need to retain existing customers while targeting non-customers;
[2]

. Measuring customer satisfaction provides an indication of how successful the

organization is at providing products and/or services to the marketplace.

Customer 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. The state of satisfaction depends on a number of both
psychological and physical variables which correlate with satisfaction behaviors
such as return and recommend rate. The level of satisfaction can also vary
depending on other factors the customer, such as other products against which
the customer can compare the organization's products.

Customer Satisfaction in 7 Steps in LIC

It's a well known fact that no business can exist without customers.
In the business of Website design, it's important to work closely
with your customers to make sure the site or system you create for
them is as close to their requirements as you can manage. Because
it's critical that you form a close working relationship with your
client, customer service is of vital importance. What follows are a
selection of tips that will make your clients feel valued, wanted and
loved.
1. Encourage Face-to-Face Dealings

This 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 nerve-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.
My experience has shown that a client finds 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. When you do meet them, be calm, confident 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.
2. Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We 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' queries 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. Even if you're not able to solve a
problem right away, let the customer know you're working on it.

A good example of this is my Web host. They've had some trouble

with server hardware which has caused a fair bit of downtime lately.
At every step along the way I was emailed and told exactly what
was going on, why things were going wrong, and how long it would
be before they were working again. They also apologised repeatedly,
which was nice. Now if they server had just gone down with no
explanation I think I'd have been pretty annoyed and may have
moved my business elsewhere. But because they took time to keep
me informed, it didn't seem so bad, and I at least knew they were
doing something about the problems. That to me is a prime example
of customer service.
3. Be Friendly and Approachable

A fellow SitePointer once told me that you can hear a smile through
the phone. This 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. There will be times when you want to
beat your clients over the head repeatedly with a blunt object - it
happens to all of us. It's vital that you keep a clear head, respond to
your clients' wishes as best you can, and at all times remain polite
and courteous.
4. Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a
clearly defined customer service policy is going to save you a lot of
time and effort in the long run. If a customer has a problem, what
should they do? If the first option doesn't work, then what? Should
they contact different people for billing and technical enquiries? If
they're not satisfied with any aspect of your customer service, who
should they tell?

There's nothing more annoying for a client than being passed from
person to person, or not knowing who to turn to. Making sure they
know exactly what to do at each stage of their enquiry should be of
utmost importance. So make sure your customer service policy is
present on your site -- and anywhere else it may be useful.
5. Attention to Detail (also known as 'The Little Niceties')

Have you ever received a Happy Birthday email or card from a

company you were a client of? Have you ever had a personalised
sign-up confirmation email for a service that you could tell was
typed from scratch? These little niceties can be time consuming and
aren't always cost effective, but remember to do them.
Even 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.
6. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out

Sometimes this is easier said than done! However, achieving this

supreme level of understanding with your clients will do wonders for
your working relationship.
Take this as an example: you're working on the front-end for your
client's exciting new ecommerce endeavour. You have all the
images, originals and files backed up on your desktop computer and
the site is going really well. During a meeting with your client
he/she happens to mention a hard-copy brochure their internal
marketing people are developing. As if by magic, a couple of weeks
later a CD-ROM arrives on their doorstep complete with high

resolution versions of all the images you've used on the site. A note
accompanies it which reads:
"Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide you
with large-scale copies of the graphics I've used on the site. Hopefully you'll be able to
make use of some in your brochure."

Your client is heartily impressed, and remarks to his colleagues and

friends how very helpful and considerate his Web designers are.
Meanwhile, in your office, you lay back in your chair drinking your
7th cup of coffee that morning, safe in the knowledge this happy
customer will send several referrals your way.
7. Honour Your Promises

It's possible this is the most important point in this article. The
simple message: when you promise something, deliver. The most
common example here is project delivery dates.
Clients don't like to be disappointed. Sometimes, 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 sub-contractors don't
always deliver on time. In this case a quick apology and assurance
it'll be ready ASAP wouldn't go amiss.
Conclusion

Customer service, like any aspect of business, is a practiced art that

takes time and effort to master. All you need to do to achieve this is
to stop and switch roles with the customer. What would you want
from your business if you were the client? How would you want to
be treated? Treat your customers like your friends and they'll always
come back.

Research Methodology :
Secondary data is collected from various bibliographical sources
such as journals, novels, magazines, publications and various
websites including the official website of LIC and various other
company websites. The published research reports and market
studies also helped the researcher to guage into the problem.
(This research is fully based on secondary data )

Chapter
5
DATA
ANALYSIS
AND

INTERPRETATI
ON

DATA ANALYSIS AND INTERPRETATION

CUSTOMERS

PRECEPTION

TOWARDS

SERVICES
LIC
50%

HDFC
30%

ICICI
20%

OTHRS
10%

( LIC IS HAVE MORE CUSTOMERS RATHER THAN OTHERS)

CUSTOMERS RELATIONSHIP
DEPARTMENTS
LIC
40%

HDFC
30%

ICICI
20%

OTHRS
10%

(IN LIC CRM DEAPARMENTS MOST TO SATISFIED THE

CUSTOMERS)

PUBLIC RELATIONS
LIC
40%

HDFC
30%

ICICI
20%

OTHRS
10%

IN LIC MOSTLY CENCENTRATE

ON PUBLIC RELATIONS
LIC POLICIES AND BETTER
PLANS
LIC
50%

HDFC
30%

ICICI
20%

OTHRS
10%

LIC IS ONE OF FIRST

INSURANCE COMPANY
WHICH PROVIDE MORE
SERVICES
Project Analysis
The Positive side of LIC as well as Negative side of LIC. I
encourage other readers to correct me if I am wrong and
also add
light to any point that I may have missed.
First lets talk about the Positive side of LIC

1. LIC is owned by the government and therefore it is the

only
company

besides

the

PPF

that

has

the

sovereign

guarantee of the
govt. of India. It is a different story that today LIC has
become so
powerful that the govt. leans on LIC every time that the
Stock
Market crashes. Imagine having an Asset base of over Rs
6 Lac
Crore. . Thats a 14 digit number! No company in India can
boast
of such figures. Mind boggling.
2. LIC is the only Life Insurance Company making profits.
Most of
the Private Insurers including the self proclaimed market
leaders
like ICICI and Bajaj Allianz are booking heavy losses.
Check IRDA
website in the Annual Report column. The point is that if
an
insurance company makes losses year over year, then how
will
they manage to pay the Claim amount? Afterall no
Insurance
company is here to do charity business.

3. When it comes to paying claims, again LIC is Number

One with
the claims settlement ratio of more than 99%. Private
Insurers
cannot match LICs ability on claims settlement. Again,
please visit
IrDAs website to see the claims settlement performance
of various
companies.
4. LIC has the worlds largest sales force, yes over 10 lac
agents
and now universities in western countries are trying to
study how a
company managed to appoint such a large sales force. A
sales
force of over 1 million! Truly a remarkable achievement.
5. Many people argue that LIC has not been able to
penetrate the
market as it has insured only 15% of the population. My
point is, in
a poor country like India where there are so many people
living
below the poverty line, so many people who die of
starvation, so
many people who dont have access to basic medication,
so many

people who dont have basic necessities of life like food,

shelter,
education and clothing. Will such a person first feed his
children or
buy Insurance ? Lets not forget that a majority of the
Indian
population is poor and a substantial percentage is living
below the
poverty line. At a personal level i feel that LIC has done a
satisfactory job of insuring people.

Chapter 7

Recommendations and
Suggestions

Recommendations

TO CONVERT ALL NEGATIVE

POINT IN POSITIVE TO SIT IN
FIRST LEVEL IN INSURANCE
AREAS FOREVER AND IMPROVE
Q.D.C

# NOW THE NEGATIVE POINTS OF LIC #

1. The Administrative staff in LIC is in deep slumber. Try

writing a
complaint to them and they wont even bother to reply
back. If you
ask the Branch Manager for the complaints book, he
probably
wont have it in place. If an Agent complains against any
staff,
then the Agent is black listed and next time onwards his
work is
not done.
2. In order to show a better performance & achieve branch
Targets, Agents are motivated by the Managers to split
the
policies. This not only adds to the inconvinience of the
policyholders but it also increases the expenses of LIC.
Competitions for Agents are held with Prizes being offered
on the
number of policies sold and not on the number of lives
insured.
Therefore many Agents are tempted to split the policies in
order to
get better prizes. However if an agent wants the forms or
sales
literature,

most

surprisingly just a

of

the

time

its

out

of

stock.

But

week before any scheme is about to close, the office is

flooded
with forms & sales literature. This is very disturbing.
3, As I earlier said, LIC is lacking in Effective Leadership in
recent
times.

Managers

having

designations

like

Marketing

Manager or
Sales Manager donot have the capability to motivate an
audience
at a meeting. Yes this is true even in a city like Mumbai.
Even the
Senior

level

managers

cannot

make

effective

presentations or
design a sales strategy. Their only mantra at an Agents
meeting is
"Friends, bring more policies!. If you ask them how
to bring more policies, they wont know. Its a pity !
4. Though LIC has more than 2000 branches, they are not
systematically located. In Mumbais Fort area, LIC has
more than
20 branches within a radius of 1.5kms. Whats the use ? In
the
suburbs where most of the people reside, there are no
branches at
all. LIC has no branches in Bandra East, Khar East & West,

Santacruz East, Vile Parle East, Andheri West, Jogeshwari

West,
Mahim, Matunga, etc. If LIC gives a thought to systematic
relocation

of

its

offices,

it

will

immensly

help

the

policyholders.
5. Even though LIC claims to have taken several initiatives
in the
IT sector, policyholders still face problems in revival of
their
policies, payment of premium in several branches, change
of
mode, change of address, etc. The After-sales policy
services
department needs to be revamped. Policyholders feel that
LIC
agents are humble while selling a policy and thereafter
they fail to
provide any service to the client. The truth is that LIC is so
weak in
policy services department, that even a good agent finds
it difficult
to get the work done from the administrative staff.
To sum up, i would say that LIC will never cheat a
Policyholder in
payment of claim, but at the same time everyone will
agree that

LIC is not responsive to the needs of the customer. If you

have
purchased an LIC policies then dont forget to pay the
premium on
time, and when your policy gets matured LIC will honestly
pay your
Maturity amount on time.
The employees are sometimes rude in their behaviour
with the
Policyholder. If a claim cheques is handed over by a
courteous
and smiling employee of LIC, it will enhance the image of
LIC in
the mind of the policyholder.
Today LIC is not just an Insurance Company, LIC is a
Movement,
LIC is a Cult, LIC is a Religion. Imagine 10 lac agents and 1
lac employees serving 16 crore policyholders in India. You
cannot
deny that LIC has become the way of life in India. Daily
you can
hear someone or the other talking of LIC in local trains, at
fish
markets, at restaurants, on News Channels, in your own
offices,
etc.

As i earlier said, LIC has started lacking in effective

leadership. If a
company like LIC starts sponsoring irrelevant awards like
Zee Cine
awards which it had done 2 years ago, then it will send
the wrong
message in the minds of the policyholders. Imagine
Indias most
famous institution sponsoring a Cine Awards function
stating that it
was done to increase the brand awareness of LIC. That
sounded
like a big joke. It is time that the top level officials of LIC
come out
of

their

air-conditioned

cabins

and

travel

by

public

transport for
sometime in order to feel the pulse of the common man.

Why LIC is trusted brand of India?

1. As a Govt of India owned Company, LIC is 51 + years old in the

field of life
insurance and money management. LIC's Life Fund size as on day is
more
than Rs 5 Lakh Thousand Crores !
2. Any LIC policyholder or the nominee will vouch for the best claims
settlement
from LIC. Perhaps, this is the only institution where you as a
policyholder are
virtually chased till such time your claim cheques is handed over to
you !
3. LIC has won `NDTV Profit Leadership Award 2007 under Life
Insurance
Category', `Outlook Money Award 2007 as the best Life Insurer',
`CNBC
Awaaz Consumer Award 2007 as the best Life Insurance Company',
`Golden Peacock Award for excellence in Corporate Governence
2007',
`Web 18 Genius of the Web Award 2007 and many more'.
4. LIC adjudged No.1 Trusted Service Brand for the 4th successive
year by ET
Brand Equity Survey.
5. LIC has been adjudged Superbrand India for 2004-06 and
Reader's Digest
`Trusted Brand' Asia 2007.
6. This is the only corporation that is catering to more than 190
million satisfied
policyholders in India and abroad.

7. This is one of the very few institutions that pays ex-gratia

interest on
pending maturity claims !
8. More than 2050 LIC branches all over India are connected
together to serve
you. You can pay your premium anywhere in the country.
9. During its long existence, LIC has kept on updating its portfolio
by bringing in
new plans depending on public requirement. More than 50 of them
are most
popular and can be customized to meet any of your requirements.
LIC ULIPs
have become extremely popular due to the returns they offer.
Money Pluslatest
LIC Unit Linked Plan is a case in point.
10. All LIC Plans come with Sovereign Guarantee i.e., Govt of India
Guarantee regarding repayment. Infact, as of now, only LIC plans
enjoy
this Govt Guarantee. Beneficiary for this Sovereign Guarantee is you
and
you alone as the policyholder/ would-be policyholder.
11. All LIC plans are characterized by low premium, high life
insurance coverage
and a vast package of benefits offered by them. Add to this
package, section
80C benefit and section 10(10D) benefit on the maturity proceeds,
you will
find investment on LIC plans one of the most coveted investment
options
available to you.

12. Premium paid under Key-Man Insurance plan is a recognized

business
expense under section 37(I) of the Income-Tax Act. For companies
making
profits, this is a very good incentive indeed.
13.

Through

Employer-Employee

Insurance

scheme,

you

can

recognize the worth

of your most valuable employees whose absence you can ill afford
to loose.
14. Entire contribution to LIC Group Gratuity Scheme is a recognized
business
expense in the hands of the employer. In addition, through this
scheme, the
employer can transfer his gratuity liability to the corporation and
fund the
same under cash accumulation scheme. The most popular among all
the
companies.
15. LIC is declaring quite an impressive bonus (profits) on all its
with-profits
policies every year. Extra attraction under LIC Bonus is (a) it is
calculated
every year on the insured amount and not on the premium paid and
(b) entire
bonus received along with insured amount either by you on
maturity of your
policy(ies) or by your nominee in your absence during the currency
of your
policy(ies) is free from income-tax under section 10(10D) of the
Income-tax
Act.

16. On most of the LIC plans, you can borrow to take care of your
immediate
monetary requirements. None of the policy benefits get affected as
a result of
borrowal. Infact, policy loans offer one of the most attractive
investment
opportunities.
17. You can pay your premium 3 years in advance at 5% discount.
Chief
attractions of this advance payment of premium are (a) there is no
possibility
of your overlooking your premium payment and getting your
policy(ies)
lapsed wherever you are in the world and (b) you will be earning 5%
tax-free
interest on the unutilized portion of the amount left with LIC after
apportioning the regular installment.
18. Most of the LIC plans come with Riders to take care of Total and
Permanent
Disablement due to Accident and some of the most dread diseases
that may
result in loss of income.
19. LIC pension plans that guarantee you life pension are extremely
popular. You
can park your hard earned money safely with the corporation and
enjoy
pension as long as you are alive.
Due to these reasons and lot more, LIC should be your obvious
choice for all
your life insurance requirements.

LIC is Indias most trusted brand, INSURING LIVES AND ENSURING

SMILES
from more than 50 Years.
SUPER BRAND & MOST TRUSTED SERVICE BRAND OF INDIA. BEST IT
USER IN INDIA (NASSCOM 2003).
Largest Institutional Investor in India and Second largest in Asia
among insurers.
(Source: Asian Investor)
LIC - An Institution Builder promoting many financial and insurance
institutes like
NSE, NCDEX, LIC Mutual Fund, Stock Holding Corporation of India,
National
Insurance Academy, Insurance Institute of India etc.
LIC is the largest life insurer of India
Asset value as on 31.3.2004: 3,673,598.4 mn (INR).
Offers over 45 plans to cover your life at various stages
Over

160

million

customers

and

1.1

million

agents.

It

has

2019

are

underwritten more than 160

million policies.
2,048

branch

offices

(all

computerized)

of

which

networked
From all above we can say our money is safe and secure with
assured returns.

Finding
Product offered to customer

 Children's Policy
Komal Jeevan - Plan No. 159
Children Deferred - Plan no.41
Jeevan Kishore - Plan no.102
Jeevan Chhaya - Plan no.103
Marriage Endowment/Educational Annuity - Plan No. 90
Jeevan Anurag - Plan no.168

Endowment Policy
Endowment with Profits - Plan no.14 Limited Payment Endowment
with
Profits - Plan no.48
Jeevan Mitra - Plan no.88
New JanaRaksha Policy - Plan no.91
Jeevan Anand Plan no. 149
Jeevan Mitra Triple Cover - Plan no.133

Group Insurance Policy

Janashree Bima Yojana
Group Insurance Scheme in lieu of EDLI
Group (Term) Insurance Scheme
Group Savings Linked Insurance Scheme
Group Superannuation Scheme
Group Mortgage Redemption Assurance Scheme

Joint Life Policy

Jeevan Saathi - Plan no.89

Money Back Policy

Money Back with Profit - Plan no.75
New Money Back - Plan no.93
Jeevan Surabhi 15 yrs - Plan no.106
Jeevan Surabhi 20 yrs - Plan no.107
Jeevan Surabhi 25 yrs - Plan no.108

Jeevan Bharati Plan No 160

Jeevan Samriddhi Plan No 154, 155, 156 157
Bima Bachat- Plan no.175

Pension Plans or Annuities

New Jeevan Dhara - Plan no.148
New Jeevan Suraksha Plan no. 147
Jeevan Akshay II Plan no. 163
Jeevan Nidhi Plan no. 169
Jeevan Akshay V Plan no. 183

Special Plans
Term Assurance - Plan no.43
Mortgage Redemption - Plan no.52
Jeevan Aadhar - Plan no.114
Market Plus - Plan No 181
Jeevan Vishwas Plan No. 136
Jeevan Saral Plan No. 165
Jeevan Pramukh Plan No. 167
Bima Nivesh 2005 Plan No 171
Money Plus-Plan No 180

Term Policy
Convertible Term Assurance - Plan no.58
New Bima Kiran
Term Assurance
Anmol Jeevan I Plan No- 164
Amulya Jeevan-Plan No-177

Service Quality
Your Policy Bond And Its Safety
Your Policy Number
Policy Conditions
Alterations In Policy
If Your Policy Is Lost
Your Contact Address Keep Us Posted Without Fail
Admission Of Age
Nomination
Assignment
When To Pay The Premiums
Grace Period For Premium Payment
How And Where To Pay The Premiums
Policy Status Where Available
Revival Of Lapsed Policies
Availing Loans On Policies
Surrender Value
Maturity, Survival Benefits, Disability And Death Claims
Policies Under Salary Savings Scheme
Helpline

Chapter 6

Conclusion

Conclusion
After Findings we can see about LIC features and his The tendency
to take
the expedient approach and focus on the far right of the LIC
spectrum,
Peacetime Contingency Operations and conduct training as usual,
while
briefing that the LIC block has been checked, will lead us to a
possibly fatal
false sense of security.
Instinctive behavior and ingrained training must be adjusted to fit
new
circumstances. STXs must be developed locally or borrowed from
units who
have already been through the training.
The probability of becoming involved in a LIC operation is high. The
potential
to attract international attention, even with limited forces, is also
great. Units
have demonstrated that with a balanced training focus and proper
preparation, many pitfalls outlined above can be avoided.
LIC

is

not

conventional

warfare.

This

is

critical

for

the

counterinsurgent to
understand. The insurgents violent and coercive strategy is applied
so as to
achieve political, civil, military and psychological results. Hence, the
counterinsurgent must counter all of these strategic elements
individually. In

addition, the target of the insurgents violence and coercion is the

population.
This is because the population is the centre of gravity in LIC.
Therefore the
counterinsurgent

must

also

focus

on

the

population

to

be

successful. In terms
of military principles in counterinsurgency, doctrinal precision,
professionalism, independence, initiative, force precision, restraint,
combined
arms, precision engagement, joint force, effective population based
intelligence, integrated communications, a civil affairs approach
and high
levels of training are critical. So all policies and plan toally satisfied
the customers.

Chapter 8

B IB L I O GR A PH
Y

B IB L I O GR A PH Y

Important websites
www.google.com(recummented)
www.licindia.com

Magazine
Yogkshem Lic Magazine

Outlook Express
Business today
Finance & Banking
Money Outlook

News Paper
Business standard
Times of India
Economic times
Hindustan times