1

SESSION 2017-18
A
SUMMER INTERNSHIP PROGRAMME
ON
AN ANALYTICAL STUDY OF SAVING
SCHEME (LIC)
In the partical fulfillment of the degree of
Master of Business Administration

SUBMITTED TO SUBMITTED BY
MRS. NEHA DUBEY ROOPAM JAIN
MBA IV SEM
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PREFACE

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 HOD Dr. Neeraj Topkhane, Head of Department of Business
Management , SVNU, 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. R.K. Rai (D.O.) he rendered me
all possible help me guidance while reviewing the manuscript in
finalising 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.

ROOPAM JAIN
MBA IV SEM.
3

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 Department DR. NEERAJ TOPKHANE, Department of Business

Management , SVNU, 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 finalising 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.

ROOPAM JAIN
MBA IV SEM.
4

DELCLARATION BY THE CANDIDATE

Date :

I declare that the project report titled " SIP PROJECT REPORT ON

AN ANALYTICAL STUDY OF SAVING SCHEME (LIC). " on Market

Segmentation is nay own work conducted under the supervision of MRS. NEHA

DUBEY . To the best of my knowledge the report does not contain any work ,

which has been submitted for the award of any degree , anywhere.

ROOPAM JAIN
MBA IV SEM.
5

EXECUTIVE SUMMEARY

In today’s corporate and competitive world, I find that insurance sector has the
maximum growth and potential as compared to the other sectors. Insurance has the
maximum growth rate of 70-80% while as FMCG sector has maximum 12-15% of
growth rate. This growth potential attracts me to enter in this sector and LIFE
INSURANCE CORPORATION (LIC). has given me the opportunity to work and get
experience in highly competitive and enhancing sector.

Agents are the only way for a company of Insurance sector through which policies and
benefits of the company can be explained to the customer.
The life insurance industry in India grew by an impressive 47.38%, with premium
income at Rs. 1560.41 billion during the fiscal year 2006-2007. Though the total volume
of LIC's business increased in the last fiscal year (2006-2007) compared to the previous
one, its market share came down from 85.75% to 81.91%.

The 17 private insurers increased their market share from about 15% to about 19% in a
year's time. The figures for the first two months of the fiscal year 2007-08 also speak of
the growing share of the private insurers. The share of LIC for this period has further
come down to 75 percent, while the private players have grabbed over 24 percent.

With the opening up of the insurance industry in India many foreign players have
entered the market. The restriction on these companies is that they are not allowed to
have more than a 26% stake in a company’s ownership.

Since the opening up of the insurance sector in 1999, foreign investments of Rs. 8.7
billion have poured into the Indian market and 19 private life insurance companies have
been granted licenses.

Innovative products, smart marketing, and aggressive distribution have enabled

fledgling private insurance companies to sign up Indian customers faster than anyone
expected. Indians, who had always seen life insurance as a tax saving device, are now
suddenly turning to the private sector and snapping up the new innovative products on
offer. Some of these products include investment plans with insurance and good returns
(unit linked plans), multi – purpose insurance plans, pension plans, child plans and
money back plans.
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CONTENTS
 ACKNOWLEDGEMENT

 EXECUTIVE SUMMARY

 INTRODUCTION OF INDUSTRY

 INTRODUCTON OF ORGANIZATION

 MILESTONES OF LIFE INSURANCE BUSINESS IN INDIA

 GENERAL INSURANCE CORPORATION OF INDIA

 MILESTONES IN GENERAL INSURANCE

 BORAD OF DIRECTORS OF LIC

 KNOW ABOUT OUR LIFE INSURANCE

 OPERATE ALL OVER INDIA

 ADMISSION OF AGE

 MISSION & VISION OF LIC

 OBJECTIVE OF LIC

 AWARDS OF LIC

 SAVING SCHEME OF LIC

 PROCUCTED OFFERED TO CUSTOMER BY LIC

 JEEVAN AKSHAY PLAN

 BENEFITS OF PLAN

 JEEVAN SARAL POLICY

 SMALL SAVING
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 PAY ROLL SAVING SCHEME

 BANK AND FINANCIAL INSTITUTIONS

 RESEARCH METHODOLOGY

 DATA ANALYSIS & INTERPRETATION

 CONCLUSION

 SWOT ANALYSIS

 APPENDIXES

 QUESTIONNAIRE

 REFRENCES & BIBLIOGARPHY

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INTRODUCTION OF INDUSTRY

The history of life insurance in India dates back to 1818 when it was conceived as a
means to provide for English Widows. Interestingly in those days a higher premium was
charged for Indian lives than the non - Indian lives, as Indian lives were considered
more risky to cover. The Bombay Mutual Life Insurance Society started its business in
1870. It was the first company to charge the same premium for both Indian and non-
Indian lives.

The Oriental Assurance Company was established in 1880. The General insurance
business in India, on the other hand, can trace its roots to Triton Insurance Company
Limited, the first general insurance company established in the year 1850 in Calcutta by
the British. Till the end of the nineteenth century insurance business was almost entirely
in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the Life Insurance
Companies Act of 1912 and the Provident Fund Act of 1912. Several frauds during the
1920's and 1930's sullied insurance business in India. By 1938 there were 176
insurance companies.

The first comprehensive legislation was introduced with the Insurance Act of 1938 that
provided strict State Control over the insurance business. The insurance business grew
at a faster pace after independence. Indian companies strengthened their hold on this
business but despite the growth that was witnessed, insurance remained an urban
phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and
provident societies under one nationalized monopoly corporation and Life Insurance
Corporation (LIC) was born. Nationalization was justified on the grounds that it would
create the much needed funds for rapid industrialization. This was in conformity with the
Government's chosen path of State led planning and development.

The non-life insurance business continued to thrive with the private sector till 1972.
Their operations were restricted to organized trade and industry in large cities. The
general insurance industry was nationalized in 1972. With this, nearly 107 insurers were
amalgamated and grouped into four companies- National Insurance Company, New
India Assurance Company, Oriental Insurance Company and United India Insurance
Company.
9

These were subsidiaries of the General Insurance Company (GIC).

With the largest number of life insurance policies in force in the world, Insurance
happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20
per cent annually and presently is of the order of Rs 1560.41 billion (for the financial
year 2006 – 2007). Together with banking services, it adds about 7% to the country’s
Gross Domestic Product (GDP). The gross premium collection is nearly 2% of GDP and
funds available with LIC for investments are 8% of the GDP.

Even so nearly 65% of the Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. A large
part of our population is also subject to weak social security and pension systems with
hardly any old age income security.

A well-developed and evolved insurance sector is needed for economic development as

it provides long term funds for infrastructure development and strengthens the risk
taking ability of individuals. It is estimated that over the next ten years India would
require investments of the order of one trillion US dollars.
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INTRODUCTION OF ORGANIZATION

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to

spread the message of life insurance in the country and mobilise people’s savings for
nation-building activities. LIC with its central office in Mumbai and seven zonal offices at
Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through
100 divisional offices in important cities and 2,048 branch offices. LIC has 5.59 lakh
active agents spread over the country.

The Corporation also transacts business abroad and has offices in Fiji, Mauritius and
United Kingdom. LIC is associated with joint ventures abroad in the field of insurance,
namely, Ken-India Assurance Company Limited, Nairobi; United Oriental Assurance
Company Limited, Kuala Lumpur; and Life Insurance Corporation (International), E.C.
Bahrain. It has also entered into an agreement with the Sun Life (UK) for marketing unit
linked life insurance and pension policies in U.K.

In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while
GIC recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's income
grew at a healthy average of 10 per cent as against the industry's 6.7 per cent growth in
the rest of Asia (3.4 per cent in Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below the poverty
line, with 50 per cent subsidy in the premium rates. LIC's claims settlement ratio at 95
per cent and GIC's at 74 per cent are higher than that of global average of 40 per cent.
Compounded annual growth rate for Life insurance business has been 19.22 per cent
per annum

The story of insurance is probably as old as the story of mankind. The same instinct that
prompts modern businessmen today to secure themselves against loss and disaster
existed in primitive men also. They too sought to avert the evil consequences of fire and
flood and loss of life and were willing to make some sort of sacrifice in order to achieve
security. Though the concept of insurance is largely a development of the recent past,
particularly after the industrial era – past few centuries – yet its beginnings date back
almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental
Life Insurance Company started by Europeans in Calcutta was the first life insurance
company on Indian Soil. All the insurance companies established during that period
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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 charged 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 into 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 nationalism.
The Swadeshi movement of 1905-1907 gave rise to more insurance companies. The
United India in Madras, National Indian and National Insurance in Calcutta and the Co-
operative Assurance at Lahore were established in 1906. In 1907, 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
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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-organisation 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-organisation 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, 109 divisional offices,
8 zonal offices, 992 satallite offices and the Corporate office. LIC’s Wide Area Network
covers 109 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-line
premium collection facility in selected cities. LIC’s 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 the liberalized 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 has 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.

MILESTONES OF LIFE INSURANCE BUSINESS IN INDIA

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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.
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GENERAL INSURANCE CORPORATION OF INDIA (GICI)

The general insurance industry in India was nationalized and a government

company known as General Insurance Corporation of India (GIC) was
formed by the Central Government in November 1972. With effect from 1
January 1973 the erstwhile 107 Indian and foreign insurers which were
operating in the country prior to nationalization, were grouped into four
operating companies, namely, (i) National Insurance Company Limited; (ii)
New India Assurance Company Limited; (iii) Oriental Insurance Company
Limited; and (iv) United India Insurance Company Limited. (However, with
effect from Dec'2000, these subsidiaries have been de-linked from the
parent company and made as independent insurance companies). All the
above four subsidiaries of GIC operate all over the country competing with
one another and underwriting various classes of general insurance
business except for aviation insurance of national airlines and crop
insurance which is handled by the GIC.
Besides the domestic market, the industry is presently operating in 17
countries directly through branches or agencies and in 14 countries through
subsidiary and associate companies.
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MILESTONES IN GENERAL INSURANCE

1907: The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of
India, frames a code of conduct for ensuring fair conduct and sound
business practices.
1968: The Insurance Act amended to regulate investments and set
minimum solvency margins and the Tariff Advisory Committee set up.
1972: The General Insurance Business (Nationalisation) Act, 1972
nationalised the
general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the
National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance Company
Ltd. GIC incorporated as a company.
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BOARD OF DIRECTORS OF LIC

Members On The Board Of The Corporation

Shri. T.S. Vijayan (Chairman)

Shri. D.K. Mehrotra (Managing Director - LIC)

Shri. Thomas Mathew T. (Managing Director - LIC)

Shri. A.K. Dasgupta (Managing Director - LIC)

Shri. Ashok Chawla (Finance Secretary, Ministry of Finance, Govt. of

India)

Shri. R. Gopalan (Secretary, Department of Financial Services, Ministry of

Finance, Govt. of India.)

Shri. Yogesh Lohiya (Chairman cum Managing Director, GIC of India)

Shri. S.Sridhar, Chairmain & Managing Director , Central Bank of India

Dr. Sooranad Rajashekhran

Shri. Monis R. Kidwai

Lt. General Arvind Mahajan ( Retd.)

Shri. Anup Prakash Garg

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KNOW ABOUT OUR LIFE INSURANCE

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 civilisation's 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:
That of dying prematurely leaving a dependent family to fend for itself.
That of living till old age without visible means of support.

Life Insurance Vs. Other Savings

Contrace Of Insurance:
A contract of insurance is a contract of utmost good faith technically known as uberrima fides.
The doctrine of disclosing all material facts is embodied in this important principle, which
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applies to all forms of insurance.

At the time of taking a policy, policyholder should ensure that all questions in the proposal form
are correctly answered. Any misrepresentation, non-disclosure or fraud in any document
leading to the acceptance of the risk would render the insurance contract null and void.

Protection:
Savings through life insurance guarantee full protection against risk of death of the saver.
Also, in case of demise, life insurance assures payment of the entire amount assured (with
bonuses wherever applicable) whereas in other savings schemes, only the amount saved
(with interest) is payable.

Aid To Thrift:

Life insurance encourages 'thrift'. It allows long-term savings since payments can be made
effortlessly because of the 'easy instalment' facility built into the scheme. (Premium payment
for insurance is either monthly, quarterly, half yearly or yearly).
For example: The Salary Saving Scheme popularly known as SSS, provides a convenient
method of paying premium each month by deduction from one's salary.
In this case the employer directly pays the deducted premium to LIC. The Salary Saving
Scheme is ideal for any institution or establishment subject to specified terms and conditions.

Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy
that has acquired loan value. Besides, a life insurance policy is also generally
accepted as security, even for a commercial loan.

Tax Relief:
Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is
available for amounts paid by way of premium for life insurance subject to income tax rates in
force.
Assesses can also avail of provisions in the law for tax relief. In such cases the assured in
effect pays a lower premium for insurance than otherwise.

Money When You Need It:

A policy that has a suitable insurance plan or a combination of different plans can be
effectively used to meet certain monetary needs that may arise from time-to-time.
Children's education, start-in-life or marriage provision or even periodical needs for cash over
a stretch of time can be less stressful with the help of these policies.
Alternatively, policy money can be made available at the time of one's retirement from service
and used for any specific purpose, such as, purchase of a house or for other investments.
Also, loans are granted to policyholders for house building or for purchase of flats (subject to
certain conditions).
Any person who has attained majority and is eligible to enter into a valid contract can insure
himself/herself and those in whom he/she has insurable interest.
Policies can also be taken, subject to certain conditions, on the life of one's spouse or children.
19

While underwriting proposals, certain factors such as the policyholder’s state of health, the
proponent's income and other relevant factors are considered by the Corporation.

Insurance For Women

Prior to nationalisation (1956), many private insurance companies would offer insurance to
female lives with some extra premium or on restrictive conditions. However, after
nationalisation of life insurance, the terms under which life insurance is granted to female lives
have been reviewed from time-to-time.
At present, women who work and earn an income are treated at par with men. In other cases,
a restrictive clause is imposed, only if the age of the female is up to 30 years and if she does
not have an income attracting Income Tax.

Medical And Non-Medical Schemes:

Life insurance is normally offered after a medical examination of the life to be assured.
However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has
been extending insurance cover without any medical examination, subject to certain
conditions.

With Profit And Without Profit Plans:

An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any,
after periodical valuations are allotted to the policy and are payable along with the contracted
amount.
In 'without' profit plan the contracted amount is paid without any addition. The premium rate
charged for a 'with' profit policy is therefore higher than for a 'without' profit policy.

Keyman Insurance
Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm
against financial losses, which may occur due to the premature demise of the Keyman.

OPERATE ALL OVER INDIA

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ADMISSION OF AGE

Admission Of Age:
Age is the main basis of calculation of premium under life insurance policies. The following are
accepted as evidence of age:
Certified extract from Municipal or Local Body’s records made at the time of birth.
Certificate of Baptism or Certified Extract Family Bible, if it contains age or date of birth.
Certified Extract from School or College records, if age or date of birth is stated therein.
Certified Extract from Service Register in the case of Govt. employees and employees of Quasi-
Govt. Institutions or
Passport issued by the Passport Authorities in India.

Payment Of Premium:
By cash, local cheque (subject to realization of cheque), Demand Draft at Branch Office.
The DD and cheques or Money Order may be sent by post. You can pay your premiums at any
of our Branches as 99% of our Branches are networked. Many Banks do accept standing
instructions to remit the premiums. So by providing a standing instruction to your Bank to debit
your account for the premium amount and send it vide a banker’s cheque to LIC, on the due
dates and months mentioned on your policy bond.
Through Internet : Payment of premiums can be made through Internet through Service
Providers viz.HDFC Bank, ICICI Bank, Times of Money, Bill Junction, UTI Bank, Bank of
Punjab, Citibank, Corporation Bank, Federal Bank and Bill Desk.
Premium payment can also be made through ATMs of Corporation Bank and UTI Bank.
Premium payment can also be made through Electronic Clearing Service (ECS) which has been
launched at Mumbai, Hyderabad, Chennai, Kolkata, New Delhi, Kanpur, Bangalore,
Vijayawada, Patna, Jaipur, Chandigarh, Trivandrum, Ahmadabad, Pune, Goa and Nagpur,
Secunderabad & Visakhapatnam. A policyholder having an account in any Bank which is a
Member of the local Clearing House can opt for ECS debit to pay premiums. The policyholders
wishing to use this system would have to fill up a Mandate Form available at our Branches/DO
and get it certified by the Bank. The certified Mandate Forms are to be submitted to our BO/DO.
Policy can be anywhere in India.
Citibank Kiosks at Industrial Assurance Building, Churchgate, New India Building, Santacruz,
Jeevan Shikha Building, Borivili are dedicated for collection of premiums through cheques.

Days Of Grace:
Policyholder should pay the premiums on due dates. However, a grace period of one month but
not less than 30 days will be allowed for payment of yearly/half-yearly/quarterly premiums and
15 days for monthly premiums.
When the days of grace expire on a Sunday or a public holiday, the premium may be paid on
the following working day to keep the policy in force.
If the premium is not paid before the expiry of the days of grace, the policy lapses.
Revival Of Lapsed Policy:
If the policy has lapsed, it can be revived during the life time of the life assured, within a period
of five years from the date of the first unpaid premium but before the date of maturity subject to
certain conditions.
The Corporation offers three convenient schemes of revival viz., Ordinary Revival, Special
Revival and Installment Revival. Policies can also be revived under Loan-cum-Revival and SB-
21

cum-Revival schemes.
Request for revival may be made to the Branch Office servicing the policy.

Change Of Address And Transfer Of Policy Records:

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

Loss Of Policy Document:

The Policy Document is an evidence of the contract between the Insurer and the Insured.
Hence the policyholder should preserve the Policy Bond till the contracted amount under it is
settled.
Loss of the Policy Document should be immediately intimated to the Branch Office where it is
serviced.

Loans:
Loans are granted on policies to the extent of 90% of Surrender Value of the policies which are
in force and 85% of the Surrender Value in case of policies which are paid-up, inclusive of the
cash value of bonus. The rate of interest charged at present is 9% p.a. payable half-yearly.
Loans are not granted for a period shorter than six months. The Conditions and Privileges
printed on the back of the Policy Bond states whether a particular policy is with or without the
loan facility.

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

Nomination:
Nomination is a right conferred on the holder of a Policy of Life Assurance on his own life to
appoint a person/s to receive policy moneys in the event of the policy becoming a claim by the
assured’s death. The Nominee does not get any other benefit except to receive the policy
moneys on the death of the Life Assured. A nomination may be changed or cancelled by the life
assured whenever he likes without the consent of the Nominee.
Ensure nomination exists in the policy for easy settlement of claims.

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

Survival Benefit/Maturity Claims:

LIC settles survival benefit/maturity claims on or before the due date.
22

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

Death Claims:
If the life assured dies during the term of the policy, death claim arises. The death of the
policyholder should be immediately intimated in writing to the Branch Office where the policy is
serviced along with the following particulars:
The No./s of the policy/ies
The name of the policyholder
Death Certificate issued by concerned Authority
The date of death.

1. The cause of death and

2. Claimant’s relationship with the deceased

 On receipt of the intimation of death, necessary claim forms are sent by the
Branch Office for completion along with instructions regarding the procedure to
be followed by the claimant.

 The claims which have arisen after a period of three years are treated as non-
early claims and settled within 30 days from the date of receipt of all
requirements.

 The claims that have arisen within a period of two years from the date of
commencement of the policy, are treated as early claims and investigation is
compulsory in such cases.

Initiatives In Policy Servicing Areas:

All 2048 Branches of LIC are fully computerized covering all policy servicing aspects to give
prompt computerized services from new policy introduction, acceptance of renewal premium,
revivals, loans, etc to final claims settlement.
Green Channel facility has been introduced for the speedy completion of proposals.Payment of
premiums can be made through internet through service providers, viz., HDFC Bank, ICICI
Bank, Times of money, Bill Junction, UTI Bank, Bank of Punjab,Citi Bank, Corporation Bank,
Federal Bank and Billdesk.

Grievance Redressal Machinery:

A machinery for redressal of policyholders� grievances exist in all the offices of the
23

Corporation. These are headed by designated Officers who are available at their respective
Offices every Monday between 2.30 pm and 4.30 pm. except holidays. Policyholder can
approach these officers to get their grievances redressed.
The Designated Officers at the various offices of the Corporation are :
At Branch Office --- Sr./Branch Manager
At Divisional Office --- Marketing Manager
At Zonal Office --- Regional Manager (Mktg)
At Central Office --- Executive Director (Mktg/IO/CRM)

Citizens’ Charter:

 Citizens' Charter was presented to the Nation in November, 1997. In the Charter the
bench marks were prescribed for 30 servicing areas.
24

MISSSION & VISION OF LIC

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."
25

OBJECTIVE 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 all insurable
persons in the country and providing them adequate financial cover against
death at a reasonable cost.

 Maximize mobilization of people's savings by making insurance-linked savings

adequately attractive.

 Bear in mind, in the investment of funds, the primary obligation to its

policyholders, whose money it holds in trust, without losing sight of the interest of
the community as a whole; the funds to be deployed to the best advantage of the
investors as well as the community as a whole, keeping in view national priorities
and obligations of attractive return.

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

 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 agents and employees of the Corporation a sense of

participation, pride and job satisfaction through discharge of their duties with
dedication towards achievement of Corporate Objective.
26

Reader Digest Trusted Brand Insurance

CNBC Awaaz Consumer awards 2010
category 2010

OUTLOOK MONEY NDTV PROFIT AWARD

World Brand Congress Award
2009 in " BEST LIFE INSURER CATEGORY "

Golden Peacock Innovative Product / Service ASIA PACIFIC HRM Congress, 2009 Award
Award - 2009 for INNOVATIVE HR PRACTICES
27

NDTV Profit Business Leadership Award

Loyalty Award - 2009
2008

INDY's Silver Award for Best Corporate Film NASCOM IT USER Award 2008

Business Superbrand India 2009 ASIA BRAND CONGRESS BRAND

LEADERSHIP AWARD, 2008
28

Meaning of saving scheme:

saving schemes are a kind of mutual funds like diversified equity funds with Tax
benefits. It is just like other tax saving instruments like National Savings Certificate and
Public Provident Fund. Main advantage with ELSS is lock-in period is only 3 years while
for NSC it is 6 years and for PPF it is 15 years. At the same time risk factor is high in
ELSS.

As per Income Tax act 80c investment up to Rs 1,00,000 are eligible for deduction from
the gross total income hence reducing the total taxable income. For example if your
total annual income is Rs 3,00,000 and you invest Rs 1,00,000 in ELSS then your
taxable income will become Rs 2,00,000.
Previously there was an upper limit for investing in tax saving instruments like ELSS of
5,00,000. Only individuals with less than 5,00,000 annual income are allowed to invest
in tax saving instruments. But last year financial budget removed this restriction and
now any individual can invest in ELSS irrespective of their income level.

Advantages of ELSS over NSC and PPF

1. Main advantage of ELSS is its short lock-in period. Maturity period of NSC is 6 years
and PPF is 15 years.
2. Since it is an equity linked scheme earning potential is very high.
3. Investor can opt for dividend option and get some gains during the lock-in period
4. Investor can opt for Systematic Investment Plan
5. Some ELSS schemes also offer personal accident death cover insurance
6. Provides 30 to 40% returns compared to 8% in NSC and PPF

Disadvantages of ELSS

1. Risk factor is high compared to NSC and PPF

2. Premature withdrawal is not allowed but it is allowed in other instruments in some
specific conditions.
29

Diversified Equity Schemes and ELSS

Both Equity linked saving scheme and diversified equity scheme operates in same way.
Both are high return and high risk schemes. But there is a 3 year lock in period of ELSS
and it provides tax benefits too.

Systematic Investment Plan

Best way to invest in ELSS is through Systematic Investment Plan(SIP). With SIP you
can invest a small amount every month for a specific time period. With SIP investor can
take advantage of fluctuations in the stock market. So investor will get more units when
the market is down and get less units when the market is up. For eg if you are investing
Rs 1000 every month and you will get 100 units for when Net Asset Value (NAV) is 10
and will get 50 units when NAV is 20. So investing a fixed sum regularly helps to cover
the market fluctuations by rupee costs averaging. Also most of the Asset Management
Companies (AMC) charges less entry load for SIP compared to normal purchase.
30

PRODUCT OFFERED TO CUSTOMR BY LIC

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.113

Group Insurance Policy

 Janashree Bima Yojana

 Group Insurance Scheme in lieu of EDLI
 Group (Trem) Insurance Scheme
 Group Saving Linked Insurace Scheme
 Group Superannuation Scheme
 Group Mortgage Redemption Assurance Scheme

Joint Life Policy

 Jeevan Saathi - Plan no.89

31

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 IInd Plan no. 163
 Jeevan Nidhi Plan no.169
 Jeevan Akshat 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
 Trem Assurance
 Anmol Jeevan I Plan No.-164
 Amulya Jeevan-Plan No-177
32

JEEVAN AKSHAY PLAN

Introduction:
It is an Immediate Annuity plan, which can be purchased by paying a lump sum amount.
The plan provides for annuity payments of a stated amount throughout the life time of
the annuitant. Various options are available for the type and mode of payment of
annuities.

Type of Annuity:

 Annuity payable for life at a uniform rate.

 Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the
annuitant is alive.
 Annuity for life with return of purchase price on death of the annuitant.
 Annuity payable for life increasing at a simple rate of 3% p.a.
 Annuity for life with a provision of 50% of the annuity payable to spouse during
his/her lifetime on death of the annuitant.
 Annuity for life with a provision of 100% of the annuity payable to spouse during
his/her lifetime on death of the annuitant.

Mode:

 Annuity may be paid either at monthly, quarterly, half yearly or yearly intervals.
You may opt any mode of payment of Annuity.

Salient features:

 Premium is to be paid in a lump sum.

 Minimum purchase price : Rs.50,000/= or such amount which may secure a
minimum annuity as under:

Mode Minimum Annuity

Monthly Rs. 500 per month
Quarterly Rs. 1000 per quarter
Half-yearly Rs. 2000 per half year
Yearly Rs. 3000 per year

 No medical examination is required under the plan.

 No maximum limits for purchase price, annuity etc.
33

 Minimum age at entry 40 years last birthday and Maximum age at entry 79 years
last birthday.
 Age proof necessary.

Annuity Rate:
Amount of annuity payable at yearly intervals which can be purchased for Rs. 1 lakh
under different options is as under:

Age last birthday Yearly annuity amount under option

(i) ( ii ) (15 years certain) ( iii ) ( iv ) (v) ( vi )
40 7510 7440 6930 5610 7310 7120
45 7770 7660 6960 5890 7500 7240
50 8140 7950 7000 6280 7760 7420
55 8650 8330 7050 6810 8130 7670
60 9350 8790 7110 7530 8640 8030
65 10410 9330 7180 8590 9400 8570
70 12080 9830 7260 10220 10560 9370
75 14510 10220 7360 12590 12240 10590

Incentives for high purchase price:

If your purchase price is Rs. 1.50 lakh or more, you will receive higher amount of
annuity due to available incentives.

Cooling-off period
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the
policy to us within 15 days from the date of receipt of the Policy Bond. On receipt of the
policy we shall cancel the same and the amount of premium deposited by you shall be
refunded to you after deducting the charges for stamp duty.

Section 41 of Insurance Act 1938 :

 No person shall allow or offer to allow, either directly or indirectly, as an

inducement to any person to take out or renew or continue an insurance in
respect of any kind of risk relating to lives or property in India, any rebate of the
whole or part of the commission payable or any rebate of the premium shown on
the policy, nor shall any person taking out or renewing or continuing a policy
accept any rebate, except such rebate as may be allowed in accordance with the
published prospectuses or tables of the insurer: provided that acceptance by an
insurance agent of commission in connection with a policy of life insurance taken
out by himself on his own life shall not be deemed to be acceptance of a rebate
of premium within the meaning of this sub-section if at the time of such
acceptance the insurance agent satisfies the prescribed conditions establishing
that he is a bona fide insurance agent employed by the insurer.
34

Any person making default in complying with the provisions of this section shall
be punishable with fine which may extend to five hundred rupees .

BENEFITS OF PLAN

The amount of annuity is assured throughout life of the annuitant.

What happens if the annuitant dies? If the annuitant dies :

1. Under option (i) annuity ceases.

2. Under option (ii)
3. On death during the guaranteed period - annuity is paid to the nominee till the end of the
guaranteed period after which the same ceases.
4. On death after the guaranteed period - annuity ceases.
5. Under option (iii) annuity ceases and the purchase price is paid to the nominee.
6. Under option (iv) annuity ceases.
7. Under option (v) annuity ceases and 50% of the annuity is payable to the surviving
named spouse during his/her life time. If the spouse predeceases the annuitant, the
annuity ceases.
8. Under option (vi) annuity ceases and full annuity is payable to the surviving named
spouse during his/her life time. If the spouse predeceases the annuitant, the annuity
ceases.

When first instalment of annuity payable: First instalment of annuity is payable after one
month, three months, six months or one year from the date of purchase of annuity depending on
the mode chosen is monthly, quarterly, half yearly or yearly respectively.
35

JEEVAN SARAL POLICY

Product Summary:
This is an Endowment Assurance plan where the proposer has simply to choose the amount
and mode of premium payment. The plan provides financial protection against death throughout
the term of the plan. The death benefit is directly related to the premiums paid. The Maturity
Sum Assured depends on the age at entry of the life to be assured and is payable on survival to
the end of the policy term. It also offers the flexibility of term and a lot of liquidity.

Premiums:
Premiums are payable yearly, half-yearly, quarterly, or monthly through salary deductions as
opted by you throughout the term of the policy or till earlier death.

Loyalty Additions:
This 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 loyalty additions which are terminal
bonuses payable along with death benefit or maturity benefit. Loyalty Additions may be payable
from the 10th year onwards depending upon the experience of the Corporation

Death Benefit:
250 times the monthly premium together with loyalty additions, if any, and return of premiums
excluding first year premiums and extra/rider premium, if any, is payable in lump sum on death
of the life assured during the term of the policy.

Maturity Benefit:
The Maturity Sum Assured plus Loyalty additions, if any, is payable in a lump sum.

Supplementary/Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra protection/option.
An additional premium is required to be paid for these benefits.

Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender values are
available on earlier termination of the contract. The surrender value will be the greater of the
guaranteed surrender value and special surrender. The plan also allows for partial surrenders.

Guaranteed Surrender Value:

36

The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed
Surrender value will be equal to 30% of the total amount of premiums paid excluding the
premiums for the first year and all the extra premiums and premiums for accident benefit / term
rider.

Special Surrender Value:

80% of Maturity Sum Assured if 3 or more years’ but less than 4 years’ premiums have been
paid; 90% of the Maturity Sum Assured, if 4 or more years’ but less than 5 years’ premiums
have been paid and 100% of the Maturity Sum Assured, if 5 or more years’ premiums have
been paid. The Maturity Sum Assured for this para will be the Maturity Sum Assured
corresponding to the term for which premiums have been paid under the policy.

Statutory warning:
“Some benefits are guaranteed and some benefits are variable with returns based on
the future performance of your life insurance company. If your policy offers guaranteed
returns then these will be clearly marked “guaranteed” in the illustration table on this
page. If your policy offers variable returns then the illustrations on this page will show
two different rates of assumed investment returns. These assumed rates of return are
not guaranteed and they are not upper or lower limits of what you might get back as the
value of your policy is dependant on a number of factors including future investment
performance.”

Age at entry: 35 years

Policy term: 25 years
Mode of premium payment: Yearly
Amount of annual premium: Rs.4704/-
37

RESEARCH METHODOLOGY
TOPIC:- ANALYTICAL STUDY OF SAVING SCHEME

DURATION:- 45 Days

 Research methodology systematically solves the research problems. It has many

dimensions & research methods constitute a part of the research methodology.

 Thus when we talk about research methodology , we do not only talk of the
research methods but also consider the logic behind the methods. We use being
evaluated either by researcher himself or by others.

 To effectively carry out in research , I would use the following research process,
which consists of series of actions or steps.

1. Formulating the research problems.

2. Research design & sample design
3. Analysis of data gathered.
4. Graphics & interpret.

1.FORMULATING THE RESEARCH PROBLEM

This is the first step under which the problem is stated in general way & then
ambiguities that is understanding & rephrasing the problems thoroughly & rephrasing
the same into a meaningful terms from an analysis point of view.

2. REPARING THE RESEARCH DESIGN

The function of research design is to provide for the collection of relevant evidences
with minimal expenditures of efforts, time & money.

RESEARCH DESIGN
 Types of research

 Sample of design

Types of Research

 The type of research under present is an Analytical Research. In analytical

research we use facts or information already available, & analyze these to make
a critical evaluation of the material . Hence the same would be done .
 In this project , I had collected facts , data & information .
38

Sample Design
A sample design is a definite plan determined before any data is actually collected
for obtaining a sample. Researcher must select a sample design, which should be
reliable & appropriate for this report.

3. OBSERVATIONAL DESIGN (COLL4ECTION OF DATA)

Observational design relates to the condition under which the observations are to be
made observational design in respect to research . There are several ways of collecting
the appropriate data , which differ considerably in context of money , time , cost & other
resources at the disposal of the researcher.

Data can be obtained from two important resources :

 Primary Data
 Secondary Data

Primary Data

Primary data are the data that are collected afresh & for the first time. Thus happens to
be in character. Primary data are collected by the following ways:

 Observations
 Interview
 Schedule
 Questionnaire

Secondary Data

Secondary data are the data that are collected & are already collected & are only
analyzed by different sources. These are as follows:

 Corporate magazine
 Manuals of various companies
 Books, journals & newspaper
 Employment exchange

I collected the secondary data from internet, mainly from annual reports of AXIS BANK
& Books of different authors of repute.
39

DATA ANALYSIS & INTERPRETATION

 DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

NO.OF
COMPANY’S NAME SHARE (%)
RESPONDENT

L.I.C. 78 78

RELIANCE LIFE
3 3
INSURANCE
ICICI PRUDENTIAL 10 10

SBI LIFE 7 7

HDFC 2 2
TOTAL 100 100

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

40

NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Cover Future Uncertainty 55 55

Tax Deductions 20 20

Future Investment 25 25

TOTAL 100 100

INTERPRETATION
55% of the respondents believe that covering future uncertainty is the biggest benefit of
an insurance policy.
Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and
future investments respectively.

DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED

RESPONDENTS
41

FEATURE NO.OF SHARE (%)

RESPONDENTS
Money Back Guarantee 15 15
Larger Risk Coverance 37 37
Easy Access to Agents 7 7
Low Premium 30 30
Company’s Reputation 11 11
TOTAL 100 100

INTERPRETATION

Majority of the respondent (37%) found Larger risk coverance as the most attracted
feature of the all.
42

DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS

POLICY TYPE NO. OF SHARE (%)

RESPONDENTS

LIFE POLICY 75 75

NON LIFE POLICY 25 25

BOTH 45 45

INTERPRETATION

75% of the respondents have Life Insurance Policy while 45% have both. (The % is
calculated out of 280 positive response)
43

DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

A saving tool 81 81%

A tax saving device 74 74%

A tool to protect your family 100 100%

INTERPRETATION
81% of the respondents have perception of Insurance being a saving tool.
And 74% of the respondents have perception of Insurance being a tax saving device.
But 100% of the respondents are with the view that Insurance is a tool to protect your
family.
44

DATA SHOWS PEOPLES HAVING INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Yes 70 70%

No 30 30%

Total 100 100%

INTERPRETATION

Of the sample size of 400 surveyed respondents 70% of the respondents are having
Insurance policy.
30% of the respondents are either not having any Insurance policy at present or their
policy is already matured.
And at present 100% of the respondents are with the view that Insurance is a tool to
protect your family.
45

DATA SHOWS BUYING PROCESS OF THE PEOPLE

BUYING PROCESS NO. OF SHARE (%)

RESPONDENTS

Customer approached 45 45%

Insurance company/Agent

Company/agent approached 55 555

customer

Total 100 100%

INTERPRETATION
44.5% of the respondents approached the Insurance Company / Agent.

Whereas, 55.5% of the respondents were approached by the Company /Agent.

46

 DATA SHOWS REASONS BEHIND FOR INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Tax saving 80 80%

Saving / Investment 80 80.%

Family protection 100 100%

INTERPRETATION

80.71% of the Respondents opted for Insurance for tax saving benefits.
80.71% of the Respondents opted for saving / Investments.
But all of them, i.e. 100% of the respondents have opted for insurance for their family
protection.
47

DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Satisfied 60 60%

Not satisfied 40 40%

Not Responded 0 0.0%

Total 100 100%

INTERPRETATION

60% of the respondents are more or less satisfied with their existing policy.
40% of the respondents are not satisfied with their existing policy.
In this case all of those who have taken a policy have responded.
48

DATA SHOWS SATISFACTION OF +RESPONDENTS WITH RESPECT TO SERVICE

AGENT

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Satisfied 45 45%

Not satisfied 55 55%

Not Responded 0 0.0%

Total 100 100%

INTERPRETATION

 45% of the respondents are satisfied with their existing service agent.

 55% of the respondents are not satisfied with their existing insurance agent.

 All of those who have taken a policy have responded.

49

DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Paying tax 100 100%

Not paying tax - 0%

Total 100 100%

INTERPRETATION

 Of the sample size of 400 respondents, all the respondents are paying tax.
50

DATA SHOWS RESPONDENT’S INVESTMENTS FOR TAX SAVING

INVESTMENTS NO. OF SHARE (%)

RESPONDENTS
LIC 51 51%
NSC 33 33%
Bonds 32 32%
PPF 25 25%
PF 21 21%
EPF 11 11%

INTERPRETATION

 51% of the respondents save their tax by investing in LIC, which is the highest

among all Investment. This shows that most people for getting taxes benefits invest

in LIC.

 33.25% of the respondents do their tax saving by investing in NSC.

 32.25% of the respondents to their tax saving by investing in bonds.

51

DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST FORM OF

INVESTMENT FOR SECURING THEIR FUTURE

NO. OF SHARE (%)

RESPONDENTS
Fixed Assets 75 75%

Bank deposits 11 11%

Jewellery 25 25%
Securities i.e. bonds, MFs 40. 40%
Shares 10 10%
Insurance 70 70%

INTERPRETATION

 75.25% of the respondents as with the view that Fixed Assets is the best form of

investment for securing their future.

 70.5% of the respondents are with the perception that Insurance is the best form of
investment for securing their future, which is one of the highest and this shows that
insurance is an important key for securing your future.
52

DATA SHOWS WHAT PEOPLE INTENT TO GAIN FROM THEIR INVESTMENT

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Saving & Returns 100 100%

Security 90 90%

Tax benefits 71. 71.%

INTERPRETATION

 100% of the respondents intent to gain saving and returns from their investment.

 90% of the respondent’s intent to gain security from their investments.

 Whereas, 71.75% of the respondent’s intent to gain tax benefits from their

investments.
53

DATA GIVES PEOPLE’S PERCEPTION ON APPROPRIATE AGE FOR BUYING

INSURANCE

RESPONSE NO. OF RESPONDENTS SHARE (%)

After 25 years 29 29%
After 35 years 10 10%
After 45 years 0 0%
Anytime 60 60%

INTERPRETATION
 29% of the respondents are with the view that insurance should be bought after the

age of 25 years.

 10.5% of the respondents are with the view that insurance should be buyed after

the age of 35 years.

 Whereas, 60.5% of the respondents are with the view that buying of insurance do

not have any thing to do with age i.e. there is no age limitations. It can be

purchased any time according to the need.

54

Conclusion

After Finding’s 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 insurgent’s 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 insurgent’s 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 we can say that so many merit’s and Demerit’s in life insurance Corporation of India.
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SWOT ANALYSIS
1 STRENGTHS

1) Strong brand name

2) Large customer base

3) Enhanced quality and long term service commitments

4) Product preference by customers

2 WEAKNESSES

1) New products did not embark predicted sales.

2) New / change look is not undertaken in new products.

3 OPPORTUNITIES

1) Competition is paving way for developing fuel efficient product like

splendor.

2) Upper rich segments are need to be targeted.

3) Stylish look need to be adopted in products as per youth

demanding.

4 THREAT

1) Competition is getting tougher every day.

2) Rival companies are making their every moves to fight

competition.

3) Customers are moving towards four wheeler segment.

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Appendixes

PERFORMANCE HIGHLIGHTS
Q4 FY08

• Net Profit 71 % yoy 63 % yoy

• Net Interest Income 89 % yoy 76 % yoy

• Fee Income 67 % yoy 70 %yoy

• Operating Revenue 87 % yoy 77 %yoy

• Operating Profit 82 % yoy 76 % yoy

• Net Interest Margin 3.93 % 3.47 %

• Cost of Funds 5.82 % 6.02%

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QUESTIONNAIRE

1. ARE YOU EMPLOYED?

YES NO

If YES, only then proceed

2. DO YOU HAVE ANY INSURANCE POLICY?

YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON-LIFE BOTH

4. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST?

(RANK THEM)

a) LIC

b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE

d) ING VYSYA LIFE

e) RELIANCE LIFE INSURANCE

f) TATA AIG LIFE

g) ANY OTHER ________( Specify)

5. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY?(Please Tick)

a) 5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other……………..(Specify)

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1. WHAT DO YOU THINK ARE THE BENEFITS OF INSURANCE

COVER? (RANK THEM)

A) COVER FUTURE UNCERTAINITY

B) TAX DEDUCTIONS

C) FUTURE INVESTMENT

D) ANY OTHER _________ (Specify)

2. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT?

(RANK THEM)

A) LOW PREMIUM

B) LARGER RISK COVERANCE

C) MONEY BACK GUARNTEE

D) REPUTATION OF COMPANY

E) EASY ACCESS TO AGENTS

F) ANY OTHER _________ (Specify)

3. YOUR MONTHLY INCOME?

a) 4k b)4k-8k c)8k-12k d)12k-16k e)Other_____(Specify)

4. DO YOU REALLY THINK INSURANCE POLICY COVER IN TODAY’S

SCENARIO IS NOT ESSENTIAL?

5. WHAT’S YOUR PERCEPTION ABOUT INSURANCE?

(RANK THEM)

a) A SAVING TOOL
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b) A TAX SAVING DEVICE

c) A TOOL TO PROTECT FUTURE

6. HOW HAS/WOULD YOU BOUGHT/BUY AN INSURANCE?

A) CUSTOMER APPROCHED INSURANCE COs

B) INSURANCE COs APPROCHED CUSTOMER

7. ARE YOU SATISFIED WITH THE POLICY?

A) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

8. ARE YOU SATISFIED WITH THE SERVICE AGENT?

A) SATISFIED SAVING TOOL

B) NOT SATISFIED

C) NOT RESPONDING

9. DO YOU PAY TAXES?

YES NO
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BIBLIOGRAPHY

 Annual Report of LIC from 2004 to 2009

 C.R. KOTTHARI, RESEARCH METHODOLOGY

Internet Portal

 www.licindia.com
 www.google.com

Releases:

 Press Release 08 – 09 & 09-10 of LIC.

 Analyst PPT 08 – 09 & 09-10 of LIC.
 Annual Performance Report.

News Paper and Magazines:

 Business World April – June Editions.

 4P’s of Marketing April – June Editions.
 Economic Times April – June Editions
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