ORIGIN OF INSURANCE

In India, insurance has a deep-rooted history. It finds mention in the writings of Manu (Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings talk in terms of pooling of resources that could be re-distributed in times of calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of insurance in the form of marine trade loans and carriers contracts. Insurance in India has evolved over time heavily drawing from other countries, England in particular. Whenever there is uncertainty there is risk. We do not have any control over uncertainties which involves financial losses. The risk may be certain events like death, pension, retirement or uncertain events like theft, fire, accident, etc. Insurance is a financial service for collecting the savings of the public and providing them with risk coverage. It comes under service sector and while marketing this service due care is taken in quality product and customer satisfaction. The main function of the Insurance is to provide protection against the possible chances of generating losses.

The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360degree turn witnessed over a period of almost two centuries.

THE CONCEPT OF INSURANCE

"Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premiums, to pay the other party called insured a fixed amount of money on the happening of a certain event."

Insurance is a protection against financial loss arising on the happening of an unexpected event. Insurance companies collect premiums to provide for this protection. A loss is paid out of the premiums collected from the insuring public and the Insurance Companies act as trustees to the amount collected.

For Example, in a Life Policy, by paying a premium to the Insurer, the family of the insured person receives a fixed compensation on the death of the insured. Similarly, in car insurance, in the event of the car meeting with an accident, the insured receives the compensation to the extent of damage.

It is a system by which the losses suffered by a few are spread over many, exposed to similar risks. Insurance is a mechanism for transferring risk and reducing risk by having a large number of individuals who share in the financial losses of the group. Risk inhibits action and is highly subjective on an individual basis. Insurance objectifies risk. People trade the possibility of financial loss for the relative certainty of the premium paid and reimbursement for loss. Insurance frees people to take action even in the

face of possible financial loss. Thus, insurance provides utility even if no loss ever occurs.

Some people believe insurance is similar to gambling or opening a savings account. Neither is true. When you place a bet, you create a risk and you have the chance of losing all or making more than your wager. Insurance companies write policies for pure not speculative risks and indemnify you when you have a covered loss. In the insurance industry, the word "indemnify" means you cannot be put in a better position than you were before the loss.

HISTORY OF PUBLIC RELATION

Public relation as team was first formally used by Thomas Jefferson in the year 1807, while drafting his seventh address to the congress delegates when he scratched out the words state of thought and wrote public relation instead. Informally Sir Walter Raleigh used it even earlier during the land Rehabilitation movement, while persuading people from different parts of America to settle in the rural parts of Virginia. This was the first organized effort to win and mobilize public opinion. In India, the term of course gained importance later through the Public Relation society of India (PRSI) in 1958.

MEANING AND INTRODUCTION:Public relation, commonly called as PR is an activity aimed at increasing common & understanding between an organisation and individual & one or more groups called publics.

What is public?
Public is a group of similar ideas, an assortment of persons having the same interests, problems, circumstances & goal. They vary in their form & size they have a multitude of wants & desires. Each group/public, employees form another group, etc. Other members of the public & everyone tries to attract a district audience with its varied tools & techniques, A public may also be made up of no. of individuals who are unorganized & hard to identify but who for widely varied reasons have a common interest in the matters a issue. Today, however, when modern means of common make vast number of people aware of controversial issues & common interests, publics tend to be large & impersonal. These publics involve people who are not known to each other & are widely distributed over the country, or even among a number of countries. The members of such public rarely meet each other face to face or have much direct communication. The impersonal but powerful publics are numerous in todays high complex society. But finally the public is any group of people who share common interest.

Relations:It is the outcome of mutual understanding derived from the process of sharing of common interest where as relationship is the want of those involved. The term PR is also applied to the profession responsible for handling such assignments. Corporation, government, agencies, politicians & entertainers are among these who use public relations. Their publics vary from employees & shareholders to an organization & its public ranges a simple news release to a sophisticated campaign featuring films, ads speeches & television appearances. Such communication is aimed at gaining the goodwill of the public. The basis of any effective PR campaign is public benefit. If an organization does not serve the needs of public, the public will not support it. PR experts help an organization learn what the public wants & then establish policies that reflect concern for publics interest. PR generally is practiced through:1) Corporate PR debt: - In a corporate department, specialists handle corporate PR activities for that company.

2) PR agencies: - In agencies specialists carry out PR activities for several companies

3) Public Information Departments: - Non-profit organization like colleges and government agencies have public information departments that work to strengthens the image of the organization.

DEFINITION OF PR BY RENOWNED PEOPLE

Frank Jefkins: Public Relations means what it says-relation with public. It is practically a self defining term. It aims to create and maintain confidence. It is a system of communication to create goodwill. It produces that intangible quality or asset-goodwill, and earns credit for achievements. K.R.Balan: The discipline which brings out the rewards in generating mutual understanding and the risk involved in misunderstanding between individuals, groups, government and nation in this restless world the shape and content of which tend to be rapidly changing. Editor of PR news: PR is the management function which evaluates public attitudes, identifies the policies & procedures, of an organization or an individual with public interest & plans & executes a program or action to earn public understanding and acceptance. Interpretation of the Definition:1. It measures, evaluates & interprets the attitude of various related public. 2. It assists management in defining objectives for increasing public understanding & acceptance of organization products, plans, policies, & personnel 3. It equates these objectives with the interest, needs, and goals of various related public

4. It develops, executes and evaluates a program o earn public understanding and acceptance.

ELEMENTS OF PUBLIC RELATIONS

1. Human relation: It is getting along well with the word public both internally or externally. No person can work independently & work everyone who works in an organization directly or indirectly depends on one another.

2. Empathy: Empathy means feeling with the other person analysis other points of view & is regarded as primary pre-requisite for a satisfying experience in a relationship where a certain degree of depth of understanding is expected.

3. Persuasion: there a 2 forms of interaction between individual or groups a) Force or compulsion b) persuasion. If one party compels another to do something instead of pursuing him this is called despotism. It is against the principle of proper conduct sanctioned by society. A sense of human interest on the person who is being persuaded will understand and appreciate the cause & effect of this action.

4. Dialogue: It is a conversation with purpose. It is not a bargain basement transaction but it is a low form of negotiation. Dialogue is a reasonable exchange of ideas bringing into view a new form of

knowledge, the use of dialogue is for influencing behavior like selling good or inspiring innovative ideas.

OBJECTIVES OF PUBLIC RELATIONS

The main objective of public relations is to establish good understanding by sharing a common problem with the public. By public we here mean both an internal public and a public external to the organization. Mutual understanding can be established only by sharing a common interest by, communication and relations. However, the following are the broad objectives of public relations: To promote mutual understanding. To avoid the risk involved in misunderstanding To win friends To influence people To change the behavior and attitude of the public To enhance the patronage from the various sections To help in fund raising To persuade individuals, groups etc. To connect misconceptions and clarify on criticism of its policies and practices. To promote goodwill To create and maintain an image or reputation about the company. To forestall attack by the competitors or opponents To undertake a public relations education program

 To help the public to love life and work for better off for worse without conditions. To improve internal staff relations. To liaise, counsel and advise. To provide information about the activities of the company to the press and writers. To prepare and supply the public with information about the organization like price, quality, export, employment and other special features. To ascertain public opinion, conduct opinion research, and understand public attitudes on the organizations, profession and practice. To sponsor dealer and distributor relations schemes. To undertake programs like sales training courses for retailers, wholesalers. To establish press relations, publicity articles preparation, press release, photographs. To communicate with the employees on their benefits, accidents prevention labor relations and collective bargaining. To undertake a campaign of public education about an industry or profession and its contribution to the public.

FUNCTIONS OF PUBLIC RELATIONS

The functions that are to be performed by a public relations department may defer from organization to organization depending upon the nature and activities of a particular organization. However, certain standards functions have emerged as common in most balanced department. They are discussed as follows: 1. Policy: Public relation policy is required for every organization. A policy is a statement of guidelines to be followed in the company. The department has to develop and recommend corporate public relations policies. It has to contribute the public relation view point which helps in the formulation of decision. Its functions are not merely to provide the policy mainly to the top management but also to other sections and divisions.

2. Publicity: Corporate publicity is necessary to interact with the public. The department has to undertake the development and issuance of announcements of corporate activities to external communication media. It has to handle inquiries from the press. It is part of the functions of the department to develop and place promotional publicity about the company as a whole or any of its unit.

3. Product Publicity: Corporate publicity is different from the product publicity. In this, focus is on the products and how to popularize the product. This includes both new products as well as existing ones. It includes the announcements of new products through the editorial channels of the communication media. The department has to develop and execute the promotional products publicity campaigns.

4. Relation with Government: Relations with government cannot be overlooked. In all spheres of activities the government interferes, regulates, controls and

supervises. It is necessary to maintain liaison with appropriate governmental departments. This liaison covers both the local level, state level and national level. Besides, governmental relations include. I. Advice action as needed II. Report trends in government affecting the company III. Help in preparing and directing corporate appearances before investigating bodies of legislative hearings. IV. Direct programs designed to promote the companys point of view in legislatives or regulatory matters.

5. Community Relations: Community contacts should be planned. It is the performance and/or coordination of corporate good neighbor activities, including compliance with environmental protection standards, fostering equal employment opportunity, cooperating in urban improvement

programs, and developing community understanding of a companys problem and needs.

6. Shareholders Relations: Relations with the corporate stockholders are more important to attract public money. This takes the form of communication between the company and the shareholder in particular. It is necessary for the development and acceptance of the company among investors by broadening the exposure of the companys policies and financial results in the investment community. This function includes preparation of annual reports, quarterly reports. Dividend cheque insert etc. It has to plan and stage the annual meetings of stockholders and appearances before meetings of security analysts.

7. Promotion Programs: Public relations promotion programs should be formulate and implemented. This may broadly covers institutional promotions design to built corporate acceptance of key policies. Institutional advertising, public relations literature and special events.

8. Donations: A corporate donations policy should be developed for company contributions- various aspects involved in this function are processing

requests for donations administering companys foundation, and the conduct of employees solicitation for approved drives.

9. Employee Publications: The public relations department has to prepare and publish employee magazines, newspaper, bulletins, management communications etc.

SOCIOLOGYCAL AND PSYCHOLOGYCAL POINT OF VIEW

The task of the relations expert is applied sociology. In other words, he must advise his clients bearing in mind the essentials features of sociology and psychology. In particular:

1. He must hold a mirror to his organization so that it can see where it actually stands and how it really looks in the opinion of the public. Thus is one of his essential duties, and most cases, it provides the organization with knowledge of itself, which is nothing short of astonishing.

2. He must collect all available data, so to have a sound knowledge of all his details and inter-relationship on which to work out a clear suggestion for building up the picture to be presented.

3. In doing this, he must help to overcome the many prejudices and biased opinions that are almost always present, and he must be frank

in pointing out and attempting to eliminate the weak points and negative aspects of the organizations projects or policies.

4. All this forms the basis for the public relations action which must then be carried into effect as a long term strategic plan founded on exact knowledge of the process of communication and making full use of all means of communication.

5. In carrying out the plan, he must keep in mind the fact that public relation is always a two-way communications. Every public relations statement has an echo, which must be regarded as the feedback in cybernetics. Experience shows him how the message was received, and from this he must draw his own practical consequences, in complete disillusions and if necessary with readiness to self-criticism. This is the decisive point in all public relations activities.

6. As a consequence of all these measures they gradually comes into being in the inter-relationship between the communicator and the public under the painstaking control of the public relations expert a large measure of conformity and harmony between the two poles. This is the sense and the purpose of public relations activities.

VARIOUS PUBLICS FOR PUBLIC RELATIONS

1. Stockholders Relations:
The owners of the company are the shareholders with whom the company always has to communicate about various matters. Most companies use personal visits, telephone calls, mailing and supplementary reports to keep shareholders informed, interested and satisfied. Communication with them may include reports, matters on corporate meetings, dividend enclosures, magazines, special mailing, notices, resolutions, press releases etc. Communications with the shareholders may cover many subjects matters such as: a) Issue of share certificate b) Share transfer applications and procedure c) Certificate of transfer d) To mobilize funds, pay dividend, interest on fixed deposits received e) To issue divided warrant, proxy form, divided coupon f) To issue notices, agenda of the various meetings g) To respond to correspondence received from them. h) Describing organizational problems and objectives of the company in terms of special current developments in the companys folder and other stockholder communication. i) Communication on matter relating to statutory requirements etc. j) Correspondence relating to calls, forfeiture, transmission. k) Drafting and circulating to all stockholders a transcript of highlight of the annual progress at the companys annual meetings. l) Giving response to stockholders inquiry which must be prompt to create goodwill.

m) Informing by way of circulating or distributing to all shareholders occasional reprints dealing with developments vital to them.

2. General Public Relations: It is with effective communications and through appropriate media that a company maintains contacts with the public. It is the means to create and build goodwill. It also helps as a driving force to reach the public, and brings the company and the public together, liking with society in general. Maintain external communications facilitates through several media of verbal and written contacts with the public in general. It is not possible to build a satisfactory public image for the company. The public should be informed about various products of the company and their use, comparative advantages, price differentials, products, after sale services and changes must be communicated promptly. Qualitative communications ensure the promotions of a positive favorable atmosphere, develops friendly and confident feelings towards the company and its product. 3. Customer Relations: An effective system of communications should provide opportunities for customer information. The customer is the ultimate object whose satisfaction and goodwill are of the utmost importance for the success of an organization. In carrying out the sales function of planning, the management must communicate with customers. There were times when the customer was not the central figure. But today the customer is the king and sovereign of the market whose needs and satisfaction, and the winning of whose goodwill, is prime importance in these days of competitive setup. These must be communicated promptly. It is the communication which establishes

the contacts with the customers. Customer communication helps to establish a relationship with customer who buy and are the sources of products. The media used for advertisements can also be used effectively to reach the customers. It is the responsibility for communication: a) To prepare welcome letters, personally addressed, signed by the chief executives officer to all old as well as new customers. b) Customer information should include helpful and desirable

information concerning prices, uses, after sale facilities.etc. c) Media like pamphlet and booklets printed in an attractive manner summarizing the companys product etc. are the purpose of communication. d) Enclosing handouts, progress reports to each bill or to each correspondence mailed o customers. This acts as a repetitive reminder to the customer about the company. e) Prompt response to all enquiries made by the customer promoters and builds confidence and goodwill. Effective written communication promotes a friendly understanding of company policies.

4. Government Relations: Communication with the government and its departments is another important dimension of external communications. Besides communication with the government covers dealings touching many government departments. A corporate enterprise has to communicate with the registrar of companies, controller of capital issues, finance department, industrial department and labor department. The relations of a company with the government are many sided. Correspondence with the government may cover export-import matters, foreign exchange dealing, listening, and

taxation matters also. A company has to file a number of documents to various departments of the government. Filing of annual returns and tax returns are regular activities. Business houses have to consider the national objectives as well as the national priorities of economic development as indicated in five year plans and other policy statements and resolutions. There is always if routine communication between the government and business on several other matters like wage policy, foreign policy, industrial policy etc.

5. Dealer Relations: A communication network should not overlook the importance of dealer communication. The dealer is a trader who carries on the business of carrying of buying and selling and other dealing. A dealer effect a substantial turnover involved in buying, selling, supplying or distributing goods directly or indirectly for cash or deferred payments or on commission. A dealer is an important party in external communication. The relation of the company with its dealers; like those of other outsiders, is said to be dealer communication. The quality of the product, the trading policy, practice, procedure and the image the dealers to promote are the fundamental factors which must be given major consideration in the subject matter of communication. The method of communicating with the dealer will vary depending upon the nature of the product, distribution and media of communication. Communication with a dealer is quite different when the distribution is made through agents.

Conferences and meetings with dealers are the usual media of oral communication. Written communication through letters is often the common method. Another medium of maintaining close contact with the dealers is by providing all the dealers with regular copies of an external house journal or news sheet. The journal generally contains messages on display, promotions, uses, benefits and comparative superiority of the product. Direct mail is also used to maintain direct contact with the dealers.

6. Inter-organization Relations: No business organization can exist in isolation without connections and dealings with other sister business organizations. Inter-corporate

communication implies a process of information exchange between companies. A company of a particular industry may have links, direct or indirect. Inter-corporate loans, intercompany investment, inter-locking directorship, inter-corporate transactions etc. are all examples of the existence of inter-corporate communications. Information exchange between companies may take place on many matters like cost, process of production, methods of production, new methods of production etc. In the present day competitive structures a firm is expected to catch up on the efficiency attained by competitors, and make efforts to reach and exceed them. Communication between the organizations on various functional performances highlights the points of strength and weakness in individual company performance. Inter-firm information exchange facilities inter-form comparison, which provide an objective and realistic measurement of comparable efficiency of the firm interested. The inter-firm messages on

operating performance, financial result, product cost structure, sale trend, market potential etc. in relation to firms of similar size, capacity, nature, industries or trade present a vivid picture of comparative strong points and weak points. The firm can improve their activities accordingly. Firms thus supplies information reports on their activities in the form of ratios, figures etc.

7. Complaints: Public relations firmly believe in openness and honest communication. Public complains, suggestions and response constitute a complaint communication system. The public is any group of people which shares a common interest. An organization which is effective communication talent has to establish and maintain mutual understanding between an organization and its public. Complaints made by the public are to be attended to, and suggestion offered should be considered. A complaint is really a favor done to the company. Correspondence with the company is a good means of communication; in particular, face to face conversation is still effective. Acknowledging a complaint and giving a decision without delay promotes goodwill. It is social responsibility of business as a firm of activity to entertain and be responsive to complaint and suggestions. The social responsibility of a business entails obligations which a business owes to society.

Communication sets in all spheres of enquiries, complaints and suggestions.

ESSENTIAL QUALITIES FOR GOOD PUBLIC RELATION

Without reaching for the moon, tentative analysis of experience with a large number of public relations managers had indicated, in general sense, the following as the basic qualities required in successful managers: a. Mental ability: a combination of planning sense, foresight, orderliness of mind and judgment, which will result in willingness to think straight, and in a thoroughness and promptness of decision.

b. Ability to see the other person point of view, and to be as critical of oneself as of other; this is the basis if ability to work with other people.

c. Integrity, in the sense of mental honesty.

d. A restrained self confidence, coupled with initiative and resourcefulness.

e. A balanced temperament particularly the absence of such traits as emotional instability, a sense of marked inferiority, forcefulness and selfcentered outlook.

NEED FOR PUBLIC RELATION

The need for public relations is clearly explained in the points below:1. Communication: The means of communication have reached, technically, almost a stage of perfection. It is today financially possible for practically everybody-at least

in the advanced nations- to receive information. The level of education of a wide circle of his population is rising rapidly and this ensures a steady increase in the capacity for receiving information which is guaranteed by the constitution. Adequate information is, therefore, theoretically possibly no although it is by no means guaranteed in each individual case.

2. New information order: Whether we are correctly informed is far more difficult to answer. Many books, many discussions in academies in radio and television in India and abroad, and countless lectures, not excluding those in Information Society and New Information Order, as far as we are aware, a correct reply is yet to be received. The only answer, according to the philosopher Karl Jaspers given in 1963, is We in the free world have the chance to share the responsibility and find ways of receiving the best possible information.

3. Information Load: Also called message load or quantity, the septic will, of course, draw our attention to the flood of information to which we are all exposed today. The proper reply to this is that this flood is largely without direction and that it is Incomplete or inaccurate. Information must be prepared. Essential information must be separated from trivial matter, and the interest of the receiver must be aroused in the right direction. In the organization that ignorance, the inability to appreciate or organization, superficial knowledge is extremely likely to result in dislikes, dissatisfaction and outright rejections with all their disastrous consequences. What we require is a fair means of information which eliminates existing or awakened suspicious, which builds

up understanding, and creates confidence. This is what we call Public Relations.

4. Mutuality and understanding: Going by the definition of public relations, the mutuality is based on interaction between consideration for public opinion, and the need of communicator or organization to inform or establish contact. Understanding is created by providing insight into, and reporting on all essentials matters. Confidence is cultivated by bringing the aim of the organization into harmony with the public interest, thus winning and maintaining goodwill among the general public. From all these facts, it is clear what the purpose of this Activity in, for, and with. The public is: To act and not to react; to create an atmosphere of confidence by an active information policy, the passive part of which consists in answering queries; to inform the public and exert influence towards the inside as a form of corporate and social counter control.

PUBLIC RELATION TOOLS

Advertising: Advertising is publicity but not all publicity is advertising. It is the business of selling goods, services and ideas by inducing people to want them. It is drawing attention of public by big public announcement to a commodity or service with the aim of selling it

Advertising may also be defined as the purchase of space in the press, or time over the radio and television to promote the sale of products or ideas, and to build up to corporate image of an institution. Advertising is one of the forces of modernization and cuts across ideologies. The specific categories of public interest advertising are: 1. Corporate Advertising: It explains the continuing research, engineering and management efforts a company makes to improve its products or services. It can be called the voice of management speaking not only to customers but also to investors, suppliers, distributors, employeespresent and potential- and leaders of public opinion.

2. Public Relations Advertising: It discusses the problems, policies, social philosophy, or economic goal of a company or industry, illuminates some aspect of the nations scene; discusses the basic principles of its enterprise, notably with respect to foreign collaboration for the reader to shade light on the economy or the society in which he lives.

3. Public Servicing Advertising: It is designed to promote voluntary individual actions to solve national problems such as better roads, prevention of floods, better health care, family planning and rehabilitation of the handicapped. Also encouraging cultural activities, tourism, secularism, buying of unit trust certificates, voting in national elections, reducing prejudices, and other worthwhile causes.

Publicity: Publicity is the technique of telling the story of any organization or cause. It is the umbrella term which in its meaning cover all the

techniques employed to get a story across to the public. It is weapon of war, an instrument of sale a tool of politics. Basically publicity is news. It has to be news, that is, be of interest to be carried. Publicity includes advertising because advertising, like publicity-tells the story. But in general usage publicity is used to describe those expressions where the medium is not paid for, whereas advertising consist of paying for the medium to get the story told. Advertising vis--vis Publicity: If public relations may be broadly considered, as it is by many, as the act of right living, or being a good citizenship. The role of public relation is to make a light worth projecting. The art of publicity is the act of projecting the light. Propaganda: Propaganda describes the political application of publicity and advertising, also on the large scale, to the end of selling an idea, cause, or candidates or all three. It was first given general currency by the Roman Catholic Church to refer to the disseminations of its doctrines. There are 2 types of propaganda. The rational propaganda in favor of action that is in consonance with the enlightened self-interest of those

who make it and those to whom it is addressed. The other is non-rational propaganda that is not constant with anybodys enlightened self-interest but is dictated by, and appeals to, passion. Diplomacy: The oxford English Dictionary calls it the management of international relations by negotiation, or, the method by which these relations are adjusted and managed. Sir Ernest Satows guide to Diplomatic Practice, a sound work which has been the Bible of British Diplomats for many years wrote Diplomacy is the application of intelligence and the governments of independent states. Promotion: Promotion describes commercialization of publicity, and publicity and advertising jointly, usually on a grand and co-ordinate scale, to the end of selling a product or products. Campaigns: Campaigns consist of concerted, single-purpose publicity programs usually on a more or less elaborate scale, employing co-ordinate publicity through a variety of media, aimed at a number of targets, but focused on specific objectives. A campaign objective may be the elections of a candidate, the promulgation of a political issue or cause, the reaching of sales goals, or the raising of a quota of funds.

Lobbying: Lobbying is a kind of tool generally used by group of persons like members of legislatures who conduct a campaign outside the legislative chamber, that groups special interest; it is also used by shareholders of business corporation during the Annual General Body Meetings to pass a resolution or elect a director to the board in the interest of a group of shareholders. In a basic sense, lobbying entails the exertion of influence, smooth and measured pressure and any other exercise of persuasion-cum-pressure.

MEDIUM OF PUBLIC RELATIONS

Letters Letters which enables one person to reach another person despite the limitations of time that can cut down on personal visits and telephoning, are among the most ancient and perhaps still the most important media of mass communication. It has been said that letters are the only selling medium that if taken away, would disrupt the entire modern business structure. They are sent out with every kind of enclosure; pamphlets and leaflets, order blanks, samples, pictures, return post cards, and many others. The well written letter has a major advantage over all other media it is directed personally and individual. If it designed to please and flatter him rather than to irritate him as an invasion of his privacy, it commands his

attention for a little while perhaps just a long enough to motivate him to do what the write wants him to do. Mail is a personal thing. A person likes to receive a letter written for him as well as addressed to him. He likes to express regards for him, offer him a better job, make a promise or enclose a cheque. When a publicist sends out a letter written for the clients benefit rather than for the recipients, privacy is being presumed upon. The recipient may resent it. He may throw the letter away without reading it, or read it only to turn against the writer. The Telephone A telephone call is more effective than a letter as a last minute reminder or an incitement to action. The telephone is good for getting a person to do something he should do although he might prefer not to such as attending a meeting. He can dodge a letter more easily than the personal commitment of a personal conversation. But for a technical or monetary commitment both parties will find it advisable to put it in writing to seal the telephone agreement. The secret of success in a large-scale telephone campaign is to obtain reliable telephone operates- people with pleasing telephone personalities and the persistence to keep after each number until they actually reach the proper party and drive the message home. The maximum effect is obtained in a telephone drive when every prospect is reached over the phone by a personal acquaintance. The telephone being an instrument of human contact, courtesy and tact in its use are important in winning the understanding and goodwill of the person on the receiving end.

People in business can win goodwill by answering their own telephone if possible; it is not pleasant telephone manners to have secretary ask every caller who is this? Who are you with? And whats the call about? Word of Mouth Word of mouth spreads like wild fire. If the subject and content are right, it can burst into spontaneous combustion just as an entire forest may suddenly be an overrun by conflagration. Through word of mouth, rumor and innuendo may spread with extreme speed and spontaneity if the subject is close to the emotion of people. Feeling and thought must quickly take wing on word of mouth. In stimulating a word of mouth campaign the important thing is to present subject matter of such interest as to cause people to repeat it to others. Word of mouth is perhaps the most subtle of publicity tools. It takes the form of gossip and slander at times if timely action is not taken to control it. Its manipulation is not subject to cut and dried mechanism, as it is the case with so many publicity media and instrument. The things that contribute to word of mouth circulation are: A spectacular and successful event or product A spectacular publicity or activating campaign. A good catchword or slogan Capitalizing on mass trend or catchword.

Newsletter The commercial field has long made good use of newsletter. These have a bright future. Newsletter tends to fit the times these days. People have

fragmented interests. There are certain things they want to know a lot about, and other things they dont want to hear anything about. Newsletters have the advantage of speed. They are quick to read.

The public relation use of newsletters is spreading rapidly into non-profit field as well. Association and professional society particularly finds the formal effective.

With this format, users can reach constitutes quickly on matter having and importance. The person to person nature invites reading. Post Cards Post cards are quick and easy to prepare, quick and easy for the recipient to absorb, economical to mail to constitutes and an effective adaptation of direct mail to reach large numbers of people with a message that can be punched home in a paragraph. In many countries, a large number of individuals can be stimulated to sign and then send post cards to their own friends and contacts.

Public Address System Public address systems at meetings, shows, gathering of employees or mass audiences of any kind make it possible mechanically to project the human voice before a large number of people. Mounted on a mini truck or the other mobile auto, the public address system can be transported from place to place, presenting speakers and programs as it goes, and reaching a widely distributed audience. Sound tracks can also be rigged up at programs in lieu of a permanently installed public address system. A portable bullhorn affords great mobility wherever amplified sound is needed.

A recording makes it possible to capture a speech or radio program and replay it by radio before an audience or over a public address system anywhere. Some recordings are made on the spot at special events. In other instances, special programs are deliberately produced at are cording studio. Video Cassette, Audio Cassette and Disc Recordings These are useful in overcoming some of the difficulties of working with a diffuse and loose-knit organization. They assure that all concerned get exactly the same message with the desired visual and/or audio emphasis. Generally, these videos cassette, audio cassettes or disc communications, through carefully prepared, are the modest in technique. Electro writers An executive or a demonstrator can write his blackboard notes across a long distance through a transmitter unit hooked up by telephone lines with a projector unit and screen. Tele lecture This is useful technique for making an audio/visual presentation at a distance. With the help of the telephone ok company there is hook up from a speakers office, a meeting or classroom, where visuals can be shown while the speaker is heard. Members of the audience can question the speaker through a two-way hook up. This permits the speaker to appear at many locations without full time or expense of going there, and it permits remote groups to engage speakers they otherwise would not attract.

PLANNING PROCESS OF PUBLIC RELATIONS

Public relation is not merely a process of getting stories and pictures into newspaper. It is much more. It has to be properly planned, orderly executed, and a number of details need careful attention. Public relations cost money, requires manpower, needs expertise, and consumes time and resources. So it should be well planned and executed in an orderly manner. Public Relation Objectives The first step is to set out clearly the PR objectives before any campaign is lunched. The publicity must have a clear idea as to what is intended to be achieved. His approach should be positive and purposeful. 1. Public The next step is to decide who is the audience to be reached i.e. local, regional, national, or international. And apart from geographical area it should be considered if any specialize audience or a section of the community or professional people is also to be reached. 2. Message After deciding the public the company has to decide what message they want to pass through the campaign, what is it they want the people to know about them or what they want to tell or inform the public about. 3. Strategy A strategy is a long term planning or the methods that a company adopts to make it successful company. For a PR campaign also strategies are required to be formed so that they can create an impact or impression

in the minds of the people; as well as they can build a fair and favorable image in the market. 4. Tactics Along with a good strategy a company also needs to use some very good tactics for its campaign there are competitors in the market and the company has to stand on top of all them. 5. Time scale The public has to decide the time scale in which they will complete the campaign. They have to set a specific time. Also the decision about the commencement of campaign, duration, repetition etc. is to be made well in time. 6. Resources The publicist has also to think about the resources in terms of money and staff available to him. The campaign has to be planned keeping in view the resources which the publicist would be able to mobilize. 7. Selection of Media/ resources Another point that requires a decision is about the media to be employed for the campaign: whether publicity is to be conducted with one medium or more than one or through multimedia. 8. Evaluation After deciding u upon the above things the publicist should evaluate the whole process to check whether everything is properly being done or not or whether they have to add anything else or not, etc

9. Review After evaluation again there should be a review of the entire thing to give it a final check. 10. Analysis After the campaign there should be an analysis of the entire process so that they will come to know whether the campaign was successful or not and if not then where it went wrong process is repeated from the point of identifying the public.

CASE STUDY ON PUBLIC RELATIONS IN LIFE INSURANCE CORPORATION OF INDIA

PROFILE OF LIC
Life Insurance Corporation of India was formed on 1 st September 1956. It can be said that with the formation of LIC, utilization of people money invested in Life insurance for planned economic development took roots. One of the reason/ objective of Nationalization of Life Insurance industry was channel zing of its funds for the benefit of the company at large. Its Central Office is located in Mumbai. It also has seven zonal offices each located in Mumbai(Western Zone), New Delhi (Northern Zone), Kanpur (North-Central Zone), Bhopal (Central Zone), Chennai (Southern Zone), Hyderabad(South-Central Zone), and Kolkata (Eastern Zone).

It has a network of over 2000(2048) branches and more than nine lakh agents. Over 47 years, LIC has become a household name for providing security for a lifetime and is synonymous to life insurance in India. LIC ranks No.1 in the list of top 500 companies on the basis of Net Worth(Rs. 15, 47, 951 million) as well as Net Profit(2,66,277 million)- Dun & Bradstreet (India 500).

VISION A trans-nationally competitive financial conglomerate of significance to societies and Pride of India MISSION Explore and enhance the quality of life people through financial security by providing products and services of inspired attributes with competitive returns, and by resources for economic development.

OBJECTIVE AND INTRODUCTION

OBJECTIVE The basic objective of this project is to Study the application of public relations in Life Insurance Corporation

INTRODUCTION Public Relations is defined as:-The planned effort to establish and improve the degree of mutual understanding between an organisation or individual, and any groups of persons or organisations, with the primary objective of assisting that organisation or individual to deserve, acquire and retain a good reputation. -The Institute of Public Relations We live in an age of dependence in which all of us are increasingly reliant upon one another for the satisfaction of our needs. The growing complexities of our society and the inevitable problems created have nullified this concept of independence. Never before has the opinion of publics been more essential to the success of any organisation. Reliance of institutions on people has been a very significant development of the 20th century. There has been an ever growing need of PR in the day to day working of organisations. The project we have undertaken is an attempt to study this phenomenon at Life Insurance Corporation.

CORPORATE POLICY OF LIC ON PUBLIC RELATION

Public Relations aims at building-up and maintaining sound, effective and productive relations with the public so as to help the organization to understand and interpret the environment as also help the public so as to help the public and the society at large to appreciate the performance and limitations of the organization. Public Relations have the responsibility to build and maintain two-way relations between the public and the organization at all levels.

The public in case of LIC includes: a) Levels of employees and agents. b) Customers c) Government: Central, state & local Bodies. d) Media, press, TV, radio & agency-owners and correspondents e) Citizens at large

A clearly laid down Public Relations Policy, therefore, is essential to set the goals, indicate the strategies and give proper directions to all levels in the area of Public Relations.

OBJECTIVES OF PUBLIC RELATIONS IN LIC

The objectives of undertaking PR activities in LIC are manifold. In their Citizens Charter the company states that:

TO THE COMMUNITY: We will

Conduct all aspects of our business keeping in view the interests of the community and the national priorities; Provide insurance cover and financial security to every insurable segment including the socially and economically weaker sections of the society.

TO OUR CUSTOMERS: We will

provide them prompt, efficient and courteous service; act as trustees of their funds and invest them to their best advantage; build and maintain enduring relationship; Keep them informed about our products and services etc.

TO OUR WORKFORCE: We will

promote a sense of participation and make them partners in progress; work towards ensuring their job satisfaction and sense of pride;

 provide an environment and the opportunities for growth to enable them to realize their full potential; Take steps to develop professional skills to enable them to handle their assignments more efficiently.

MISSION Establish understanding and develop awareness of mutual aspirations of LIC and the Public.

GOALS Promote within the corporation greater awareness of the changing environment and the need to align the corporate policy to the emerging situation. Help fashioning, within the constraints, its policies, programs, practice and products to meet the expectation of the public. Help the public to appreciate the performance and the limitations of LIC. Make PR occupy the front seat in the organizational set-up.

STRATEGY Develop excellent relations with the totality of the media-print, electronics and agency owners and reporters by regular exchange of information with them.

 Establish relations-and develop understanding with the Govt.-Central, State & Local bodies through legislators and Govt. officials. Develop full understanding with the workers-employees at all levels and agents on organizational goals, policies, practices and programs. Develop an effective system of communication with the department and operating units on the environment and on implementation of policies. Help to develop an image of LIC as a responsive organization Devise methods for opening up channels of two-way communication with various public of the corporation

ACTION PLAN Keeping the objectives, philosophy and the strategies in view, drawingup annual PR plans by Branches, Divisions, Zones & corporate office. Develop an effective system of periodical reviews of PR plans at all levels B.O, D.O, Z.O, and corporate Develop streamlined methods of systematic dissemination of the information relevant to each of the publics and to get feedback from the totality of the public. Organize events like inauguration of new B.O, D.O, Z.O, or any arm of the corporate etc, as public functions to project corporate image. Develop a task-plan in respect of the above strategies.

 Formation of PR Advisory Committees at D.O, Z.O, and C.O organize PR department in the C.O, Z.O, and D.O, for the realization of the goals, and develop a nucleus in branches also.

ORGANISATION AND STAFFING OF THE PUBLIC RELATIONS DEPARTMENT

LIC is purely a service-oriented organisation. Moreover for transacting with their customers and business associates the company needs to develop and maintain cordial relations with various sections of the society and various other agencies i.e. their publics. This makes the role of PR in LIC even more important and vital.

The company has a huge and active Public Relations Department which looks after the publicity of the various services offered, maintaining cordial relations with the various publics, publishing of journals, etc. and other PR activities. Budget: The management allocates Rs. 2-3 Crores (approx.) annually to the PR Department. This amount is then further allocated to the various Zonal Offices which prepare their individual budgets according to their requirements.

Staffing Of PR Department The Director-PR operates from the central office and has under him a Chief PRO. Each Zonal Office has a Zonal Manager-PR under who is the Regional Manager-PR. Further under him is the Assistant Secretary who works with his Subordinate staff to fulfill the day-to-day activities of the PR Department.

A PR plan is made at the beginning of each accounting year for which the Chairman appoints a PR Planning Committee. This committee comprises of the Director PR, Chief PRO, etc.

PUBLIC RELATIONS ACTIVITIES AT LIC

PRESS CONFERENCE Press conference & interview are arranged periodically by all LIC offices i.e., central, zonal, Divisional and branches offices at the time of launching any new scheme and to inform about the policies, programs and activities to the press so that it can be publicized.

LIC WEB SITE

LIC has its own website Licindia.com which provides information about LIC and its subsidiaries and the products offered by them

USAGE OF INFORMATION TECHNOLOGY

With a view to providing quick and accurate service its customers LIC has to introduced on-line service through front-end terminals in 1993 branches and soon all our customers will be able to benefits by this.

GRIEVANCE REDRESSAL MACHINARY

LIC has established an elaborate Grievance Redressed Machinery in order to deal with problems of customers. The grievance redressed cells are operative at all levels .i.e. Branch, divisional, zonal and corporate offices. Specially designated officers attend to policyholders complaints.

RALLY ORGANISATION

LIC has organized a massive rally to pay homage martyrs of Cargill to provide moral support to the Indian army.

PR AND PUBLICITY CONFERENCES

PR and Publicity Conferences arranged at the central office in which the chairmen emphasis cooperative scenario with the help of revised PR and Publicity strategies because it was found out by a survey that the level of customer satisfaction is not very high.

CLAIMS REVIEW COMMITTES A claims review committees was being formed at the formed at the corporate level with a retired judge as one of the members and it handles grievances arising out repudiation of claims etc. Similar committees are also constituted at Zonal level.

PRESS RELEASE

Press releases regarding important news are related from time to time so that people are kept informed and they know about them.

CUSTOMER MEETS

Periodical customer meets are organized at divisional and Branch level to facilitate greater interaction with policyholders

PUBLICITY PAVILION

Publicity pavilion are arranged to display information about PR and Publicity activities of LIC

CONSUMER AFFAIR COMMITTEE

A high profile committee has been constituted by the central office with eminent persons from the consumers movement being its member to advice and guide LIC on matters concerning consumer interests. CITIZENS CHARTER

The corporation has adopted a Citizens Charter wherein commitments have been made to its citizens for higher standards in servicing.

FREE PHONE CALL FACILITY TO THE POLICYHOLDER

A unique facility of free phone call service is being provided to the policy holders of Mumbai city to enable them to have easy access to grievances redressed officers over the phone

PUBLICS IMPORTANT TO LIC

INTERNAL PUBLICS I. II. III. Employees Employees families Staff Unions

EXTERNAL PUBLICS I. Customers i.e. policy holders II. Prospective Customers III. Government Agencies

IV.

Banks and Financial Institutions

V. Statutory Bodies e.g. IRDA(Insurance Regulatory and Development Authority) VI. Social Organisations

VII. Lawyers VIII. Local Administration IX. X. XI. Media General Public Auditors

RELATIONSHIP WITH SIGNIFICANT PUBLICS

Significant internal publics of the organisation are its Employees Employees families; and the Staff unions.

1)

EMPLOYEE RELATIONS

In most Indian organisations, or companies, communications with employees have so far been given a back seat as compared to external communications. This has not been the case with LIC. It has through time realized the importance of its internal publics.

LIC shares a good rapport with its employees. There are various staff unions to take care of the employees rights. The company shares a cordial and harmonious relationship with these unions.

The companys focus, as regards its employees, is on providing: A healthy working environment; Employee friendly HRD policy; Job security; Training of Human resources; Fully utilizing its peoples talents and capabilities to promote skills and competencies and broaden their perspective; Handsome remuneration and perks.

The company achieves the above objectives by a number of means. a) HOUSE JOURNALS The corporation has a corporate house magazine YOGAKSHEMA which chronicles corporate and organisational events and

pronouncements. The corporation also releases a quarterly newsletter JANKALYAN which serves the above mentioned purpose as well as acknowledging employee achievements and produce merit lists of employee

performance.

A news letter NILYAMDOT COM is also published by the corporation which is developed by the children of the LIC employees and is exclusively for children. b) INTERACTION The corporation also conducts open houses, meetings, seminars, workshops. This is done with the aim of facilitating two-way communication. c) REWARDS Prizes are awarded to top performers at staff meetings and conferences.

2) CONSUMER RELATIONS In consonance with the changes taking place in the insurance market, the corporation has undergone a transformation, simultaneously requiring a revamp in its image. Systematic and focused PR initiatives and widespread publicity have resulted in markedly improved visibility. The corporation has emerged with a much younger and sleeker image. A conscious effort was made to bring about a transformation in the corporate image. Through various campaigns, the corporation tried to depict the organisation as one oriented towards the younger generation. The corporation advertising campaigns assisted the marketing strategies.

PR Activities for Consumer Relations The business of insurance is purely service which cannot be seen or held. Hence, the consumer relations activities of LIC concentrate on the customer public and building relations with prospective customer. The corporation has time and again made endeavors to reach out to the consumers, interact with them and keep them satisfied. The corporation tries to achieve its objective through a number of means

Oral Communication Oral communication with the consumer public is the most effective means of presenting facts and creating understanding of the organizations policies and practices.

Employee-Consumer Communication : The harmonious relationship that LIC has, through the years , built and maintained with its customers has only been possible due to its dedicated and committed team of Development Officers and scores of Insurance Agents throughout the country.

Press Conferences Press Conferences are organized to announce new appointments of top executives, introduction of new schemes, etc.

Audio-Visual Communication Television and Radio broadcasts are a basic medium of consumer communication Television and Radio advertising The corporations advertisements reached nearly 25 crore people through over 50 campaigns. There were 79 hours of TV advertising and 408 hours of Radio advertising. Trans-slides The Corporation has placed trans-slides at strategic places, like Railway Stations and Airports, for maximum exposure to public at large.

Printed Communication At LIC printed communications are used in conjunction with oral communication media.

Press Release Press releases are frequently handed out to the media by the local PR department on behalf of the company. These generally comprise of any subject or issue concerning the company, containing information for policy holders or any item of news value to the media and its readers. Journals and Publications

The corporation takes out its annual working results and several other publications from time to time to keep the public abreast of the happenings and achievements at LIC.

Financial Results The annual financial report of the corporation is published in the National dailies and is also circulated amongst the shareholders to keep them informed. It also aims at attracting new investors.

Booklets, Brochures and Pamphlets Booklets, Brochures and Pamphlets are generally taken out to inform its internal and external public about its various new schemes and act as an effective medium of print communication. Posters and Hoardings These tools are not only an advertising medium but also a very effective PR tool. LIC uses posters and hoardings to get quick public notice. Posters and hoardings are widely placed throughout the city at busy intersections like subways, railway stations, roadsides, bus shelters, etc.

Other Amenities Provided by LIC

Website

The Corporations website www.licindia.com gives information about the corporations products, services, subsidiaries and addresses of branches and about premium payment through the internet. It also provides

Press releases News sections Online policy status

Online Premium Payment LIC has tied up with HDFC Bank, ICICI Bank, UTI Bank, Bank of Punjab, Global Trust Bank, Corporation Bank, The Federal Bank Ltd., Citibank, and service providers like Bill Junction.com,

timesofmoney.com to offer the online premium payment facility to its customers in select cities.

Information Kiosks The corporation has installed online information kiosks at prominent places across the country. This provides information about the Products, services and policy status reports to the customers.

Customer Contact Programmed The purpose of such a campaign is to strengthen the relationship with the customers and to build bridges of understanding.

3) FINANCIAL RELATIONS

There are quite a few financial publics of LIC. 1. Government Agencies 2. Banks and Financial Institutions 3. Statutory Bodies e.g. IRDA(Insurance Regulatory and Development Authority) 4. Auditors

To communicate with them and to keep them informed of the companys progress several activities are undertaken by the PR Depts. The Annual General Meeting The Annual Report The annual report is released annually to inform all publics of the companys working results. Chairmans Statement The chairmans statement is a comprehensive guide to what the company is and where it strives to be. It comprises of the corporations corporate vision, philosophy and policies, management contributions, future plans and a host of other such important aspects.

4) COMMUNITY REALTIONS LIC regularly provides Health vans to various organisations across the country. The corporation also sponsors many sports events at the national level. Numerous publicity projects with a social purpose are undertaken at the zonal level. Recently the North Zone (Delhi) associated itself with the Perfect Health Mela to propagate the cause of good health.

AIM OF CORPORATE RELATIONS FULFILLED AT LIC

The aim of any organisation is to create for itself: A. CORPORATE IDENTITY B. CORPORATE IMAGE C. CORPORATE CITIZEN

CORPORATE IDENTITY Image Communicators/ Identity Creators Company Logo The companys logo has become synonymous with insurance and security in India. Sign-up Line We Know India Better Company Publications

The company has a host of publications that comprise of in-house journals, external newsletters, annual reports, etc. Citizens Charter The company philosophy goes a long way in creation of harmonious relations with its publics. The citizens charter is a comprehensive statement of the companys philosophy towards its publics. CORPORATE IMAGE The above listed image communicators have been very successful in creating a corporate image of LIC in the minds of the people over the years since its establishment. CORPORATE CITIZEN With all its PR initiatives and activities, since its establishment, LIC has proved to be a successful corporate citizen.

CONCLUSION
Public Relation came into existence by the belief that if we do something good for people then only the people will say well about the organization. Todays is age of competition. And to remain in the competition depends on how efficiently the organization manage it PR & project the companys image.

Public Relation will not sell goods and services bit its bound to create an atmosphere which will make the free enterprise, a responsible enterprise. Public Relations, in fact will prove to be the most effective tool for communicating with the people who are still remote from industry for convincing them that corporate objectives are ultimately in the interest of the public.

The PR mantra has now become pervasive. Neither an individual nor the organization or a UN body can thrive or sustain in this age without effectively strategizing PR.

BIBLIOGRAPHY
BOOKS REFERRED

1. Principles Of Public RelationsC. Rayendu & K.R. Balan (Himalaya) 2. The Art & Science of Public RelationGregory Anne 3. Effective Public Relations ManagementA Guide to Corporate Survival- Winer Park- Jaico 4. Handbook Of Public Relations In India Mehta D. - Allied Pub. Delhi

WEBSITES REFERRED 1. www.licindia.com 2. www.indiaprblog.com 3. www.indiaprwire.com/pressrelease/licinsurance/200921