Mba Project

The Study Of Policy And Plans Of LIC and Its Impact On Market Position With Reference
To Patna
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To Patna
INTRODUCTION TO THE RESEARCH

TOPIC
Conceptual Perspective of the topic
Why to study market share and customer’s
satisfaction
level.
Objective of the study.
Scope of the study.
Methodology
Data needed
Sources of data.
Sample specification
Method of data collection
Analysis technique
Time span of the field work
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To Patna
INTRODUCTION TO THE RESEARCH TOPIC
Insurance is a social device where uncertain risks of
individuals may be combined in a group and thus made
more certain - small periodic contributions by the
individuals provide a found out of which those who suffer
losses may be reimbursed. In addition to being a means to
protect oneself, the insurance Industry is an efficient
conduit for the saving of people to be channeled towards
economic growth. In India, the Insurance Industry7 is more
than 150 years old. Today, it is monopolized by two PSU's
in their respective fields of life and General Insurance.
However, with the successful passage IRDA Bill through
both houses of parliament in December 1999 the sector has
been opened up to private players. This will provided
much. Needed impetus to the Industry and will improve the
quality of service and products and will also increase
employment opportunities. There are still some issues their
need to be sorted out, particularly with regard to the
status of intermediaries as envisaged by the Insurance
Regulatory Authority.
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OBJECTIVE OF THE STUDY
It is a common notion that the study conducted during summer training
and submission of the report there upon is a formality that the summer
trainees have to go through to get M.B.A degree.
However, conducting a study only to present report does not sound
justifiable, there has to be some noble objectives to it. This objective in
every case is to gain full understanding of the problem under study and
make relevant comment upon them.
In the present case the researcher overall objective was to as much
information on LIC Company from different section of the market. The
researcher’s main objectives during the study were :
 To find out the market share of LIC co. respect to all other
insurance companies in some selected areas of Patna market.
 To identify various attributes of Life Insurance products.
 Find out the level of satisfaction of the buyers on different
attributes.
 To identify strength weakness, opportunity and threats for LIC co.
 To make comparative study between LIC Policy and other major
players policies.
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To Patna
SCOPE OF THE STUDY
The study was aimed at finding out the market share and satisfaction
level among different buyers of insurance products. The study was
conducted in the mithapur & Mahendru of Patna. The variable studied
were market share and customer satisfaction level with various
attributes of life insurance products. Project was done in the month of
June and July 2017.
METHODOLOGY
Marketing research is a systematic gathering, recording and
analysis of data. During the course of conducting the study the
information was gathered mainly through primary source.
1.6 DATA NEEDED
 How many persons own life insurance products?
 How many different life insurance products flood in the market?
 Satisfaction level prevailing among different buyer’s group.
 Rate of satisfaction on the basis of different features provided by
different companies in the market.
SOURCES OF DATA
PRIMARY DATA:
 A non-random convenience sampling from different job
profile/income group
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To Patna
SECONDARY DATA :
 Newspapers
 Internet
 Magazines
SAMPLE SPECIFICATION
Area surveyed : Mithapur, Gardanibagh, Krishna Apartment,
Boring road, Mahendru, Patna
Sample size : 100 respondents
The size of the sample was decided in accordance to convenience.
METHOD OF DATA COLLECTION
Interview schedule has been used to fetch information from respondents
to carry out in depth analysis for research finding.
ANALYSIS TECHNIQUE
The analysis technique used was percentage.
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TIME SPAN OF THE FIELD WORK
The field work was carried out in a span of nearly 6 weeks.
INTRODUCTION TO INSURANCE
INDUSTRY
2.1 An introduction to Insurance
Industry.
2.2 Why it is superior to other forms of
savings.
2.3 who can buy Life Insurance Policy.
2.4 IRDA (Insurance Regulatory and
Development Authority)
2.5 About Life insurance Co. Ltd
2.6 About Insurance

7 Instutute
To Patna
INTRODUCTION TO INSURANCE INDUSTRY
Life insurance is a contract for a payment of a sum of money to the
person assured ( or to the person entitled to receive the same) on the
happening of the event insured against. Usually the contract provides
for the payment of the amount on the date of maturity or at a specific
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date of periodic intervals or an unfortunate death, if it occurs earlier.
Among the things, the contract also provides for the payment of
premium periodically to the company by the assured. Life insurance in
universally acknowledged to be an institution which eliminates risk.
Substituting certainty for uncertainty and comes to timely aid of the
family in the unfortunate event of death or of total permanent
disability of the bread owner. By and large, life insurance is
civilization’s partial solution to financial uncertainties caused by
uncertain death.
WHY IT IS SUPERIOR TO OTHER FORMS OF SAVINGS

PROTECTION
Saving through life insurance greatened financial protections against
risk of death or policy holder. In life insurance, on death the full sum
assured is payable ( with bonus whichever applicable) whereas in
other savings schemes, only the amount saved ( with the interest ) is
payable.
AID TO THRIFT
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Life insurance encourages “thrift”. Long savings can be made in a
relatively “painless” manner because of the easy installment facility
(premium can be paid through monthly, quarterly, half-yearly or
yearly installments).
LIQUIDITY :
Loan can be raised on endowment type and whole life policy as per
policy conditions on the sole security of a policy which has acquired a
paid up value. Besides a life insurance policy is also generally accepted
as a security for even a commercial laon/housing plans.
TAX RELIEF
Tax relief in income tax is available for amount paid by way of
premiums for life insurance subjected to income tax rules under U/S
80c & 10(10D). Assesses can avail themselves of the provisions in the
law for tax relief. In such case the assured in effect pays a lower
premium for his insurance that he would have to pay otherwise.
MONEY WHEN YOU NEED :
A suitable insurance plan or a combination of different plans can be
taken to meet specific needs that are likely to arise in future, such as
children’s education, start-in-life of marriage provisions or even
periodical needs for cash over a predetermined stretch of time.
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WHO CAN BUY LIFE INSURANCE POLICY
Any person who has attained majority and is eligible to enter valid
contract can take out a life insurance policy for himself/herself and for
those in whom he/she has insurable interest. Policies can also be
taken out, subjected to certain conditions on the life of one’ spouse or
children. While underwriting proposals, factors such as state of health
of life to assured, the proponent’s income and other releant factors are
considered by the company.
A BRIEF ABOUT INSURANCE

The Business of insurance related to the protection of the
economic value of assets. There is a normally expected value of
assets. There is normally expected lifetime for an asset during which
time it is expected to perform. However ,if the assets get lost earlier,
being destroyed or made non functional, through an accident or other
unfortunate event, the owner and those deriving benefit there from
suffer. Insurance is an mechanism that helps to reduce such adverse
consequence.
HOW INSURANCE WORKS

The mechanism of insurance is very simple. People who
are the exposed to the same risk come together and agree that if
anyone of the member good the loss to the person who lost.
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People facing common risks come together and make their small
contribution to a common fund. The contribution to be made by each
person is determined on the assumption that while it may not be
possible to tell beforehand , which person will suffer , it is possible to
tell on the basis of past experience , how many person , on an average
, may suffer .
EXAMPLE
There are 1000 person who are all aged 50 and healthy. It
is expected that out of these person may die during the year. If the
economic value of loss suffered by the family of each dying person is
taken to be Rs. 20,000/- the total loss would out to Rs. 2,00,000/- . If
each person of the group contributes Rs. 2000/- a year ,the common
fund would be Rs. 2,00,000/-. This w ould be enough to pay
Rs.20,000/- to pay Rs. 20,000/- to the family of each of the persons
who die. Thus the risks in cases of 10 persons are shared by 1000
persons.
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TYPES OF RISKS
Natural Social risk Functional Technical Personal

risk risk risk risk
Floods Frauds Loss of Fire Death
profit explosion
Storm Strikes Liability Breakdown Sickness
Land slide Transit risk Process
hazard
Subsidence Theft Project risk
Negligence
Earthquake Riots Contractual Failure of Injury
failure safety
devices
CRITERIA FOR INSURANCE
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Fundamental underlined principles of insurance state that in order for
a specific exposure or loss to be insurable that following criteria must
be met.
 A larger number of homogenous units (people, companies,
entities etc.) with a similar potential for loss or exposure must
be available for insurance. The law or large numbers.
 Losses must be definite and discreet in time and place
 Losses must be fortuitous, accidental in nature, unexpected and
beyond the control of the insured.
 Loss must be large enough to cause financial burden.
 Losses must be measurable and calculable, a monetary amount
must be determined for the loss.
 Past experience or a history of specific loss must exist to provide
a guide for actuaries to estimate frequencies, severity and costs
and determine fair rates.
 The cost of insurance must be affordable and should be a
fraction of the value of the insured item, and
 Individual and aggregate losses that may cause the downfall of
the insurer must not exist.
BRIEF HISTORY & BACKGROUND
Although insurance in its present form has been brought to
India, Asia and Africa by British and other colonial powers, the concept
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of collective co-operation to share a particular risk was as old as the
dawn of human civilization. India was a major trading power in ancient
times and some mention of devices of sharing of risk can be found in
ancient literature. For example, a ship was loaded with merchandise of
several traders( and not with that of single trader). In Mogul army a
life annuity was granted to the family on the demise of the sepoy
(against some regular contribution in the life time of the sepoy). The
‘joint family’ system in India was embodiment of basis concept of life
insurance.
2.8.1 EARLY ATTEMPTS

Life Insurance in its modern form came to India from England in
1818 with the formation of Oriental Life Insurance Company in
Calcutta mainly by Europeans to help widows of their kin. Later, due to
persuasion by one of its directors, Indians were also covered by the
company. By 1868, 285 companies were doing business of insurance
in India. Earlier these companies were governed by Indian Companies
Act, 1866. By 1870, 174 companies ceased to exist, when British
parliament enacted Insurance Act, 1870. These companies however,
insuring mainly European lives. Those Indians who were offered
insurance cover were treated as substandard lives and were accepted
with an extra premium of 15% to 20%.
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2.8.2 THE FIRST INDIAN COMPANY

Pioneering efforts of reforms and social workers like Raja Ram
Mohan Roy, Dwarkanath. Tagore, Ramatam Lahiri, Rustomji Cowasji
and other led to entry of Indians in Insurance Company under the
name of “Bombay Life Assurance Society” started its operations in
1870, and started covering Indians lives at Standard rates. Later
“Oriental Govt. Security Life Assurance Co. “ was established in 1874,
with Sir Phirozshah Mehta as one of its founder directors and later
emerged as a leading Indian Insurance Company.
PRE – INDEPENDENCE HISTORY
With the patriotic fervor of Non- Cooperation Movement (1919)
and Civil Disobedience Movement (1929), number of Indian
Companies entered the Insurance arena. Eminent figures in political
area like Mahatma Gandhi and Pandit Nehru openly encouraged
Indians to enter the fray. In 1914 there were only 44 companies; by
1940 this number grew to 195. Business in force during this period
from Rs. 22.44 crores to Rs. 340.03 crores (1628381 policies). Life
Fund steadily grew from Rs. 6.36 crores to 62.41 crores. In 1938, the
insurance business was heavily regulated by enactment of Insurance
Act. 1938(based on draft bill presented by Sir N.N. Sircar in Legislative
Assembly in January 1937).
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From here onwards the growth of Life Insurance was steady,
except for a setback in 1947-48 due to aftermath of partition of India.
In 1948, there were 209 insurers, with 712.76 crores business in force
under 3016000 policies. The Life fund by then had grown to 150.39
crores.
IRDA (Insurance Regulatory and Development Authority)
The Government of India has enacted the Right to Information Act,
2005 which has come into effect from October 13, 2005. The Right to
Information under this Act is meant to give to the citizens of India
access to information under control of public authorities to promote
transparency and accountability in these organizations. The Act, under
Sections 8 and 9, provides for certain categories of information to be
exempt from disclosure. The Insurance Regulatory and Development
Authority (IRDA) is a public authority as defined in the Right to
Information Act, 2005. As such, the Insurance Regulatory and
Development Authority is obliged to provide information to members
of public in accordance with the provisions of the said Act.
Access to the Information held by IRDA
The right to information includes access to the information which is
held by or under the control of any public authority and includes the
right to inspect the work, document, records, taking notes, extracts
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or certified copies of documents / records and certified samples of the
materials and obtaining information which is also stored in electronic
form.
IRDAWebsite
The IRDA maintains an active website. The site is updated regularly
and all the information released by the IRDA is also simultaneously
made available on the website. The information published in public
domain include the following:
1.Acts/Regulations
2. Information relating to Insurers/Reinsures, Agents Training
Institutes, Appointed Actuaries.
3. Information relating to Surveyors, Third Party Administrators,
Insurance Brokers, CorporateAgents
4. Information relating to Insurance Councils, Insurance Ombudsmen
5.Annual Report/IRDA Journal
6.Press Releases.
Complaints against Insurance Companies
IRDA has provided for a separate channel for lodging complaints
against deficiency of services rendered by Insurance Companies. If
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you have a complaint/grievance against an insurance company for
poor quality of service rendered by any of its offices/branches,
please approach the Nodal Officer of the Insurance Company
concerned. In case you are not satisfied with the Insurance
Company’s response you may also file a complaint with the
Insurance Ombudsman in your State. The Insurance Ombudsman is
an independent office to provide speedy and cost effective resolution
of grievances to the customers. For more details on Insurance
Ombudsman Scheme and their contact numbers, please visit.
Complaints from Policyholders
Policyholders who have complaints against insurers are required to
first approach the Grievance/Customer Complaints Cell of the
concerned insurer. If they do not receive a response from insurer(s)
within a reasonable period of time or are dissatisfied with the response
of the company, they may approach the Grievance Cell of the IRDA.
Functions of IRDA
As it is the regulatory body of insurance so it has to done certain work
for the shake of insurance holder. The functions which are done by it
are thus:-
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1 Procedure for registration. ---
(1) An applicant desiring to carry on insurance business in India shall
make a requisition for registration application in Form .
(2) An applicant, whose requisition for registration application has
been accepted by the Authority, shall make an application in Form for
grant of a certificate of registration.
2 Classes of insurance business for which requisition for
registration application may be made.—(1) An applicant shall
make a separate requisition for registration application under
regulation 3 for each class of business of insurance.
The classes of business of insurance for which requisition for
registration application may be made are :
(a) Life insurance business consisting of linked business, non-
linked business or both; or,
(b) general insurance business including health insurance
business (or health cover).
(3) Requisition for Registration Application.—An applicant shall
be eligible to apply for requisition if such applicant upon registration
will be an Indian insurance company.
4 Furnishing of further information and clarification, etc.--- The
Authority may require the applicant, which makes a requisition, to
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furnish further information or clarification regarding the matters
relevant to consider the requisition for registration application.
6 Consideration of requisition for registration application. ---
The Authority on being satisfied that---
(1) The requisition in Form is complete in all respects and is
accompanied by all documents required there in;insurance business
including management of investments within its own organization;
7. Rejection of requisition for registration application- The
application can be rejected on the basis of the half filled application or
not ligibility of the applicant.
8. Action upon rejection of application for requisition.—An
applicant, requisition for registration application has been rejected,
may approach the Authority with a fresh request for registration
application after a period of two years from the date of rejection, with
a new set of promoters and or for a class of insurance business other
than the originally proposed one.
9. Manner of calculation of twenty six per cent. equity capital
held by a foreign company.—
For the purposes of the Act and these Regulations, the
calculation of the holding of equity shares by a foreign company either
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by itself or through its subsidiary companies or its nominees (hereafter
referred to as foreign investor) in the applicant company, shall be
made as under and shall be aggregate of:-
(a) The quantum of paid up equity share capital held by the foreign
company either by itself or through its subsidiary companies or
nominees in the applicant company;
(b) the quantum of paid up equity share capital held by other foreign
investors, non-resident Indians, overseas corporate bodies and
multinational agencies in the applicant company; and
10 Consideration of Application.- The Authority shall take into
account for considering the grant of certificate, all matters relating to
carrying on the business of insurance by the applicant.
11 Effect of rejection of application for registration.—An
applicant, whose application for registration has been rejected shall
not be entitled to a certificate:
An applicant may approach the Authority with a fresh request for
registration after a period of two years from the date of rejection, with
a new set of promoters and or for a class of insurance business other
than the originally proposed one.
12. Manner of payment of fee for registration.- The fee of rupees
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fifty thousand for each class of business for registration shall be
remitted by a bank draft issued by any scheduled bank in favour of the
Insurance Regulatory and Development Authority payable at New
Delhi.
13. Grant of certificate of registration.— The Authority, after
making such inquiry as it deems fit and on being satisfied that –
(a) The applicant is eligible, and in its opinion, is likely to meet
effectively its obligations imposed under the Act;
(b) The financial condition and the general character of management of
the applicant are sound;
14. An applicant granted a certificate of registration under the
Regulations shall commence insurance business for which he has been
authorized within 12 months of the date of registration.
Provided, however, that if the company feels that it will not be
able to commence the insurance business within the specified period of
12 months, it can before the time limit expires, seek an extension, by
a proper written application, to the Authority.
15. The Authority on receipt of the request referred to in Regulation
16. will examine it and communicate its decision in writing either
rejecting the request or granting it.
17. No extension of time shall be granted by the Authority beyond 24
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months from the date of grant of registration
17 Manner of renewal of certificate. – (1) An insurer, who has
been granted a certificate under section 3 of the Act, shall make an
application in Form IRDA/R5 for the renewal of the certificate to the
Authority before the 31st day of December each year, and such an
application shall be accompanied by evidence of the payment of the
fee which shall be the higher of,---
a. fifty thousand rupees for each class of insurance business, and
b one-fifth of one per cent. of total gross premium written direct by
an insurer in India during the financial year preceding the year in
which the application for renewal of certificate is required to be made,
or rupees five crores, whichever is less; (and in the case of an insurer
carrying on solely re-insurance business, instead of the total gross
premium written direct in India, the total premium in respect of
facultative reinsurance accepted by him in India shall be taken into
account)
18 Manner of payment of fee for renewal of certificate.- The fee
for renewal of certificate shall be paid to the account of Insurance
Regulatory and Development Authority with the Reserve Bank of India.
19 Issue of duplicate certificate.--The Authority may, on receipt
of fee of rupees five thousand, issue a duplicate certificate to an
insurer, if the insurer makes an application to the Authority.
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Suspension of certificate.— Without prejudice to any penalty which
may be imposed or any action taken under the provisions of the Act,
the registration of an Indian insurance company or insurer who
conducts its business in a manner prejudicial to the interests of the
policyholder.
21 Manner of making order of suspension or cancellation of certificate.
—No order of suspension or cancellation shall be imposed except after
holding an enquiry in accordance with the procedure specified in these
regulations.
22 Manner of holding enquiry before suspension or
cancellation.—For the purpose of holding an enquiry under
regulation.
23 Show-cause notice and order.---On receipt of the report from
the enquiry officer, the Authority shall consider the same and if
considered necessary by it, issue a show-cause notice as to why a
penalty as it considers appropriate should not be imposed.
24 Effect of suspension or cancellation of certificate.--- On and
from the date of suspension or cancellation of the certificate, the
insurer shall cease to transact new insurance business:
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25 Publication of order.--- The order of the Authority shall be
published in at least two daily newspapers in the area where the
insurer has his principal place of business.
26 Registration of existing insurers.—(1) Every insurer carrying
on insurance business in India before the commencement of the
Insurance Regulatory and Development Authority Act, 1999 (41 of
1999) and requiring registration under the Act, shall make an
application, in Form IRDA/R2 for grant of certificate of registration,
within three months from the commencement of the Insurance
Regulatory and Development Authority Act, 1999 (41 of 1999).
27 Transitory Provisions.--- Every existing insurer shall be
required to comply with all the Regulations made by the Authority
from the date of their notice Provided that the Regulations made by
the Authority on the following subjects viz:-
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REINSURANCE
The insurance Regulatory and Development Authority, IRDA for short,
has laid down that those who wish to become insurance agents will be
given licenses only after they complete a course of study and pass an
examination prescribed was to last 100 hours. The course, IC 33, was
prepared keeping in mind that requirement. In 2007, the period of
compulsory study has been reduced to 50 hours.
Press Release regarding IRDA (18/8/07)
In the last two- three years the unit linked product have become very
popular among customers and the share of this product in the total
portfolio of the life insurance companies has increased significantly.
The IRDA is keen to ensure that all unit linked products are
transparent and that customer form every walk of life can compare
features and charges across products and cross companies. The tulip
guidelines issued over the last year are the steps initiated by the
authority towards achieving this. As a continuation of the process we
have decided that actuarial funded products be phased out so that
products across companies could be compared and understood easily
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by the customers.
Technically there is nothing wrong with the actuarial funded
products and they are not determined to the interests of the
policyholder. Further they have been approved by the IRDA.
Companies having actuarial funded products have been asked to
with draw them over a period of time. They can continue to sell the
products till then and customers and both existing and new, can
continue to enjoy the benefits of these products and have no reason to
fell concerned.
To reiterate, our objective is to remove complexity in all unit
linked products and ensure comparison across Tulips’ of all companies.
The existing or new customer who have purchased these products
need not worry under any circumstances as policy holder interests will
Protected by the insurance and the authority.
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PRESENT SCENARIO OF INSURANCE INDUSTRY IN INDIA
In spite of phenomenal progress of LIC of India, especially in the
80s, the Government and the public at large were not quite satisfied
with it. By signing the GATT accord, the Government of India was
committed to opening of insurance sector to private sector, both local
and global operators. A committee under the chairmanship of Late
R.N. Malhotra (ex-Governor of RBI) was appointed by the Government
to look into all aspects of insurance industry in India. The committee,
too, opened that in its 40 years of existence, LIC has been able to
insure only 22% of the insurable population. Further, the monopoly
has resulted in lack of sensitivity to the policyholders. The Committee
felt that there was a greater scope ofor product innovation and service
improvement. The committee recommended a number of measures to
revamp LIC of India, GciC of India and its fourt subsidiaries. It also
rcommended allowing foreign insurance companies to operate in India
with an Indian partner. Finally the Lok Sabha has enacted the
Insurance Regulatory and Development Authorty Aat, 1999. Foreign
insurance companies under the Act. Can enter the Insurance sector in
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nida only with an Indian Partner, as a joint parner , as a joint venture,
with a capital contrinution up to a maximum of 26% of the capital in
the joint venture.
Since, 2000, around 30 companies have expressed interest in
entering the sector and many foreing and Indian companies have
arranced alliances. Whether the insurer old or new, private or public,
expanding the market will present challenges. A number of foreing
insurance companies have set up representative officers in India and
have also tied up with various asset management companies. They
have either signed MOUs with Indian companies or are trying to do the
same. Some have carried out extensive research on the Indian
insurance sector. Others have set up liaision offices. Up to 2009-10 28
companies have got license to do Life Insurance Business in India. As
under
1. LIC of India
2. HDFC Standard Life Insurance Company Ltd.
3. MAX New York Life Insurance Company Ltd.
4. ICICI Prudential Life Insurance Company Ltd.
5. Kotak Mahindra Old Mutual Life Insurance Ltd.
6. Birla Sun Life Insurance Company Ltd.
7. TATA AIG Life Insurance Company Ltd.
8. SBI Life Insurance Company Ltd.
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9. ING Vaisya Life Insurance Company Ltd.
10. BAJAJ Allianz Life Insurance Company Ltd.
11. MET Life India Insurance Company Ltd.
12. Future Genarali Life Insurance Company Ltd.
13. IDBI Forties Life Insurance Company Ltd.
14. AMP Sanmar Life Insurance Company Ltd.
15. AVIVA Life Insurance Company Ltd.
16. SAHARA India Insurance Company Ltd.
17. SHRI RAM Life Insurance Company Ltd.
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GROWTH OF LIFE INSURANCE IN ASIA AND AFRICA
The story of growth of Life Insurance in Asia and Africa follows
almost a similar pattern to than in India. Life Insurance in its modern
form was introduced by colonial powers in Asia and Africa. The
Insurance Industry in various countries went into the cycle of being in
private sector then nationalization and finally liberalization by way of
co-existence of private and public sector. Although there was a
laudable growth of Life Insurance in some pockets (e.g. Hong Kong,
Singapore, South Korea, Taiwan in Asia and South Africa in Africa), by
and large the Life Insurance coverage is not significant. Exception is,
of Japan where gross Life Insurance premium (361 billion dollars:
1998), spread as share of world market(129%), insurance
density(2857 dollars per capita) and highest in the world. About a
decade earlier, Life Insurance in China was negligible, however, of late
it is following a systematic policy of liberalization by allowing
multinationals to operate in costal towns and cities.
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ABOUT INSTITUTE OF INSURANCE
The Insurance Institute of India (Regd.) formerly known as
Federation of Insurance Institutes (J.C. Setalvad Memorial)
(Regd.) was established in the year 1955, for the purpose of
promoting Insurance Education & Training in the country.
The Institute is a professional body serving the cause of the
Insurance Industry. The Institute conducts qualifying
examinations at three basic levels: Licentiate, Associateship
and Fellowship as also introductory examinations -
Inspectors and Certificate in Insurance Salesmanship. It
also organises tuition service both oral and postal.
It is the only professional insurance institute in India . It is a
charter member in the Institute of Global Insurance
Education (IGIE).(www.igie.org)
The membership of the Institute is through local associated
Institutes. The Sri Lanka Insurance Institute, the Sri Lanka
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Insurance Academy and the R.I.C.B. Insurance Institute,
Bhutan are the affiliated Institutes outside India .
Membership
The membership of the Institute is through its local
Associated Institutes. There are at present 91 local
Associated Institutes spread all over the country. The
members of the local Associated Institutes and the Affiliated
Institutes automatically become the members of the
Institute. The Life Insurance Corporation of India and the
General Insurance Corporation of India , New India
Assurance, Oriental Insurance, National Insurance, and
United Insurance are corporate members.
Governing Body
The Governing Body of the Institute is its Council which
functions through its two Committees, the Administration
Committee and the Board of Education. The Board of
Education is the supreme body in all matters of education
and examinations
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Secretariat
The Institute is headed by a Secretary-General, assisted by
Secretaries, Dy.Secretary, Asst. Secretaries, and Officers &
Staff.
Object of this institute:
To run College and conduct examinations, oral and written,
in insurance theory and practice and related subjects for
awarding certificates, diplomas and degrees to those
interested in insurance.
To give oral and postal tuitions, prepare and supply reading
materials and similar other educative methods for
encouraging and assisting the study of any subject bearing
on any branch of insurance.
To offer scholarships, grants and prizes for research or any
other educational work bearing on insurance.
To ascertain the law and practice relating to ail matters
connected with insurance and to disseminate such
knowledge among those interested in insurance.
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To Patna
The activities and programmes of the Institute, among
others, assist people in the insurance Industry, to acquire
the skills and expertise to meet the growing needs of
multiplicity of customers- the objective being to enhance
professional insurance service to the millions in this
country.
ABOUT METLIFE
3.1. Life Insurance Corporation of India
3.2. Company Profile in India
3.3. Partners
3.4. Why Choose LIC
3.5. Different Plans Offered By LIC
3.6. LIC Vision and Values
36
To Patna
3.1 Life Insurance Corporation
Life Insurance Corporation of India (LIC) was formed in September, 1956,
by an Act of Parliament, viz., Life Insurance Corporation Act, 1956, with
capital contribution from the Government of India. The then Finance
37
To Patna
Minister, Shri C.D. Deshmukh, while piloting the bill, outlined the
objectives of LIC thus to conduct the business with the utmost economy,
and a spirit of trusteeship; to charge premium no higher than warranted
by strict actuarial considerations; to invest the funds for obtaining
maximum yield for the' policy holders consistent with safety of the
capital; to render prompt and efficient service to policy holders, thereby
making insurance widely popular. Since nationalization, LIC has built up
a vast network of 2,048 branches, 100 divisions and 7 zonal offices
spread over the country. The Life Insurance Corporation of India 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. The Corporation has
registered a joint venture company in 26 th December, 2000 in Katmandu,
Nepal by the name of Life Insurance Corporation (Nepal) Limited in
collaboration with Vishal Group Limited, a local industrial Group. An off-
shore company L.I.C. (Mauritius) Off-shore Limited has also been set up
in 2001 to tap the African insurance market.
General Insurance:
General insurance business in the country was nationalized with effect
from 1st January, 1973 by the General Insurance Business
(Nationalization) Act, 1972. More than 100 non-life insurance companies
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To Patna
including branches of foreign companies operating within viz., the
National Insurance Company Ltd., The New India Assurance Company
Ltd., The Oriental Insurance Company Ltd., and The United India
Insurance Company Ltd. with head offices at Calcutta, Bombay, New
Delhi and Madras, respectively. General Insurance Corporation (GIC)
which was the holding company of the four public sector general
insurance companies has since been delinked from the later and has
been approved as the "Indian Reinsurer" since 3 rd November 2000. The
share capital of GIC and that of the four companies are held by the
Government of India. All the five entities are Government companies
registered under the Companies Act, 1956. The general insurance
business has grown in spread and volume after nationalization. The four
companies have 2699 branch offices, 1360 divisional offices and 92
regional offices spread all over the country. GIC and its subsidiaries have
representation either directly through branches or agencies in 16
countries and through associate locally incorporated subsidiary
companies in 14 other countries. A wholly- owned subsidiary company of
GIC, i.e. Indian International Pvt. Ltd. is operating in Singapore and
there is a joint venture company, viz. Ken-India Assurance Ltd. in Kenya.
A new wholly owned subsidiary called New India International Ltd., UK
has also been registered.
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To Patna
PRODUCTS OF LIC
Whole Life with Profits Plan – 002
Features:
This plan is mainly devised to create an estate for the heirs of the
policyholder as the plan basically provides for payment of sum assured
plus bonuses on the death of the policyholder. However, considering the
increased longevity of the Indian population, the Corporation has
amended the above provision, thereby proving for payment of sum
assured plus bonuses in the form of maturity claim on completion of age
80 years or on expiry of term of 40 years from date of commencement of
the policy whichever is later.
The premiums under the policy are payable up to age 80 years of the
policyholder or for a term of 35 years whichever is later. If the payment of
premium ceases after 3 years, a paid-up policy for such reduced sum
assured will be automatically secured provided the reduced sum assured
exclusive of any attached bonus is not less than Rs.250/-. Such reduced
paid-up policy is not entitled to participate in the bonus declared
thereafter but the bonuses already declared on the policy will remain
attach, provided the policy is converted in to a paid-up policy after the
premiums are paid for 5 years.
Suitable For:
This policy is suitable for people of all ages who wish to protect their
families from financial crises that may occur owing to the policyholder's
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To Patna
premature death.
BENEFITS
SURVIVAL BENEFIT:
Sum assured plus accrued bonuses and the terminal bonuses, if any; on
the policyholder attaining age 80 years or on expiry of term of 40 years
from the date of commencement of the policy whichever is later.
DEATH BENEFIT:
Sum assured plus accrued bonuses and the terminal bonuses, if any, on
the death of the policyholder are paid to his/her nominees/heirs.
LIMITED PAYMENT WHOLE LIFE - PLAN 005 (WITH PROFITS)
Features:
This is the best form of life assurance for family provision since it
enables the Life Assured to pay all the premiums during the ordinarily
vigorous and most productive years of life. He need not pay any premium
in the later stages of life if and when his conditions might become
adverse.
With Profits Limited Payments Policies do not cease to participate in
profits after completion of the premium paying period but continue to
share in the periodical Bonus Distribution until the death of the Life
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To Patna
Assured.
The Without-Profit option is available under Table no. 3. If the
policyholder pays at least 3 years' premiums and then discontinues
paying any more premiums, a reduced paid-up assurance policy comes
into force. Such a reduced paid-up Policy will not be entitled to
participate in the profits declared. Thereafter, but such Bonus as has
already been declared on the Policy will remain attached thereto. The
premium paying term under this plan is five years minimum and 55
years maximum.
BENEFITS
Survival benefits
If the Life Assured survives the premium paying period and the policy
continues in full force, provided all premiums have been paid, but no
further premiums are required to be paid.
Death Benefits:
Sum Assured plus Bonuses accrued and vested in the policy.
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To Patna
ENDOWMENT WITH PROFIT PLAN - 014
FEATURES:
 Moderate Premiums
 High bonus
 High liquidity
 Savings oriented
This policy not only makes provisions for the family of the Life Assured in
event of his early death but also assures a lump sum at a desired age.
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To Patna
The lump sum can be reinvested to provide an annuity during the
remainder of his life or in any other way considered suitable at that time.
Premiums are usually payable for the selected term of years or until
death if it occurs during the term period.
Suitable For:
Being an endowment assurance policy, this plan is apt for people of all
ages and social groups who wish to protect their families from a financial
setback that may occur owing to their demise.
The amount assured if not paid by reason of his death earlier will
payable at the end of the endowment term where it can be invested in an
annuity provision for the rest of the policyholder's life or in any other way
he may think most suitable at that time.
BENEFITS
Disability Benefit:
In case policy holder becomes totally and permanently disabled due to an
accident before reaching the age of 70 and the policy is in full force, he
will not be required to pay further premiums, (the Disability Benefit is
available in respect of the first Rs.20000 sum assured on anyone life)
and the policy will continue to be in force.
Accident Benefit:
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To Patna
By paying a small extra premium of Rs. l per Rs. 1000/- sum assured
per year he or his family are entitled to the following benefits on death or
permanent disability caused by accident. Even students above the age of
18 years can avail of this benefit.
Premium Stoppage:
If payment of premiums ceases after at least THREE years' premiums
have been paid , a free paid-up policy for a reduced sum assured will be
automatically secured provided the reduced sum assured, exclusive of
any attached bonus, is not less than Rs. 250/-. The reduced sum
assured will become payable on the event as stipulated in the policy.
Bonus:
Is there anything extra payable besides the sum assured at the time of
claim settlement? Yes, but only if it is a 'with profits' policy. Every year
the Life Insurance Corporation distributes its surplus among
policyholder to 'with profits' polices in the form of bonuses. Substantial
bonuses have been declared in the past after each valuation of policy
liabilities.
BENEFITS
Survival benefits:
Payment of full Sum' Assured + Vested Bonus + Final Additional bonus,
if any.
45
To Patna
Death Benefits:
Payment of full sum assured + Vested Bonus.
Plan Parameters:
Minimum Maximum
Entry Age (years) 12 65
Sum Assured (Rs.) 50000 no
limit
Term (years) 5 55
Mode Of Payment Max Maturity Age Policy
loan available
Monthly, Quarterly, 75 years yes
Half Yearly, Yearly,
Salary Saving Scheme.
ANMOL JEEVAN - I (WITHOUT PROFITS)
BENEFITS
On Death during the Term of the Policy: Sum Assured
On Maturity : Nil
RESTRICTIONS
(A) Minimum age at entry : 18 years (completed)
(B) Maximum age at entry : 55 years (nearer birthday)
(C) Maximum age at maturity : 65 years
(D) Minimum Term : 5 years
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To Patna
(E) Maximum Term : 25 years
(F) Minimum Sum Assured : Rs. Five Lakh
(G) Maximum Sum Assured : Rs. Three Crore (Inclusive of all
term Assurance plans)
Note: The policy would be issued in multiples of Rs. one lakh for
Sum Assured above Rs. five lakh.
(H) Mode of Premium Payment: Yearly, Half- Yearly and Single
premium.
(G) Rebates:
 Sum Assured Rebate: NIL in case of regular premium policies
and Re. l Sum Assured for policies of Rs.25 lakh and above in
case of single premium policies.
 Mode Rebate : 1% of Annual premium for yearly mode and nil
for Half-Yearly mode.
UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS:
The plan is available to Standard and Sub-standard lives (upto Class VI
EMR). This plan is also available to female lives (category I and II lives
only) and to physically handicapped persons subject to certain
conditions. Standard age proof will have to be submitted along with the
Proposal Form.
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To Patna
PAID-UP AND SURRENDER VALUE:
 The policy will not acquire any paid-up value.
 No Surrender Value will be available under this plan.
GRACE PERIOD FOR NON-FORFEITURE PROVISIONS:
A grace period of 15 days will be allowed for payment of yearly or half-
yearly premiums. If death occurs within this period and before the
payment of the premium then due, the policy will still be valid and the
Sum Assured paid after deduction of the said premium as also unpaid
premiums falling due before the next policy anniversary of the Policy. If
the premium is not paid before the expiry of the days of grace, the Policy
gets lapsed.
REVIVAL
If the Policy has lapsed, it may be revived during the life time of the Life
Assured, but before the date of expiry of policy term, on submission of
proof of continued insurability to the satisfaction of the Corporation and
the payment of all the arrears of premium together with interest at such
rate as may be prevailing at the time of the payment. The corporation
reserves the right to accept or decline the revival of discontinued policy.
48
To Patna
The revival of the discontinued policy shall take effect only after the same
is approved by the Corporation and is specifically communicated to the
Life Assured. The cost of the Medical reports, including Special Reports,
if any, required for the purposes of revival of the policy, should be borne
by the Life Assured.
PAYMENT OF CLAIMS
No Claims concession will be applicable to this Policy.
BACK-DATING INTEREST
The policy can be back dated within the financial year. No dating back
interest shall be charged.
BENEFITS
Survival benefits:
If one or both the lives survive to the maturity date, the sum assured,
along with the accumulated bonus, is payable.
Death Benefits:
In case either of the couple dies during the policy's term, two things
happen. One, LIC pays to the surviving spouse the full sum assured.
And, two, the policy continues on the life of the surviving partner without
him/her having to pay any further premiums, i.e. the life cover on the
survivor continues free of cost.
49
To Patna
The sum assured is again be payable on the death of the other partner in
case both the husband and wife were to die during the term of the policy.
Vested bonus would also be paid along with the sum assured on the
second death.
NEW INSURANCE SCHEMES
Universal Health Insurance Scheme
The Universal Health Insurance policy is available to groups of 100 or
more families. The policy provides for reimbursement of medical
expenses upto Rs.30000/- towards hospitalization floated amongst the
members of the family, death cover due to an accident for Rs.25000 to
the earning head of the family and compensation due to loss of earning
head of the family @ Rs.50/- per day upto a maximum of 15 days, after a
waiting period of three days, when the earning head of the family is
hospitalized. The premium under the policy is Rs.1! - Per day (Le.
Rs.365/-per annum) for an individual, Rs. 1.50 per day for a family of
five limited to spouse and children (i.e. Rs.548 per annum), and Rs.2/-
per day (i.e. Rs. 730 per annum) for covering dependent parents within
the overall family size of seven. A subsidy of Rs. 100 per year towards
annual premium for "Below Poverty Life" families is also provided under
the Scheme.
For purpose of this policy HOSPITAL means:
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To Patna
 Any Hospital/Nursing home registered with the local authorities and
under the supervision of a registered and qualified Medical
practitioner.
 Hospital, Nursing Home runs by Government.
 Enlisted hospitals run by NGOs/ Trusts/ selected private hospitals
with fixed schedule of charges.
 Hospitalization should be for a minimum period of 24 hours.
However, this time limit is not applied to some specific treatments and
also where due to technological advancement hospitalization for 24
hours may not be required.
Main Exclusions:
 All pre-existing diseases.
 Corrective, cosmetic or aesthetic dental surgery or treatment.
 Cost of spectacles, contact lens and hearing aid.
 Primarily diagnostic expenses not related to sickness/injury.
 Treatment for Pregnancy, Childbirth, Miscarriage, abortions etc.
Age Limitations:
This policy covers people between the age of 3 months to 65 years.
Floater Basis:
The benefit of family' will operate on floater basis i.e. the total
reimbursement of Rs. 30,000/- can be availed of individually or
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To Patna
collectively by members of the family.
Insurance plans:
As individuals it is inherent to differ. Each individual’s insurance needs
and requirements are different from that of the others. LIC’s Insurance
Plans are a policy that talk to you individually and gives the most
suitable options that can fit ones’ requirement.
Jeevan Anurag Komal Jeevan

CDA Endowment Vesting At
21 Marriage Endowment Or
CDA Endowment Vesting At Educational Annuity Plan
18
Jeevan Kishore Jeevan Chhaya
Child Career Plan Child Future Plan
Jeevan Aadhar
Jeevan Vishwas
The Endowment Assurance Policy

The Endowment Assurance Policy-Limited Payment
Jeevan Mitra(Double Cover Endowment Plan)
Jeevan Mitra(Triple Cover Endowment Plan)
Jeevan Anand
New Janaraksha Plan
Jeevan Amrit
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Jeevan Shree-I
Jeevan Pramukh
The Money Back Policy-20 Years

The Money Back Policy-25 Years
Jeevan Surabhi-15 Years
Jeevan Rekha (closed for sale)
Bima Bachat
Jeevan Bharati
The Whole Life Policy

The Whole Life Policy- Limited Payment
The Whole Life Policy- Single Premium
Jeevan Rekha (closed for sale)
Jeevan Anand
Jeevan Tarang
Two Year Temporary Assurance Policy

The Convertible Term Assurance Policy
Anmol Jeevan-I
Amulya Jeevan
Jeevan Saathi Mortgage Redemption
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To Patna
Unit plans:
Unit plans are investment plans for those who realize the worth of hard-
earned money. These plans help you see your savings yield rich benefits
and help you save tax even if you don’t have consistent income.
 Jeevan plus
 Future plus
 Bima plus
 Market plus
 Money plus
 Profit plus
 Fortune plus
SURVEY
ANALYSIS &
INTERPRETATIO
N
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To Patna
1. According to you, which have played a major role in the field

of life-insurance companies?
Pvt. Govt. Business Man

Insurance
Employees Employees
LIC 10 13 10
HDFC 5 3 5
ICICI 3 3 4
Others 2 1 1
55
To Patna
14
12
No. of Respondents
10
8 Pvt. Employees
Govt. Employees
6 Business Man
0
LIC HDFC ICICI Others
After analyzing this data it is found that from the given three respective
level of Pvt. Govt. and Business 10 out of 20 (30%), 13 out of 20 (39%)
and 10 out of 20 (30%) are in favour of LIC, while 5 out of 20 (15%), 3
out of 20 (9%) and 5 out of 20 (6%), 1 out of 20 (30%) and 1 out of 20
(30%) are in favour of other Pvt. Companies.
2. Which insurance companies have been successful to make

strong public base by advertisement?

Insurance
Employees Employees
LIC 12 14 12
HDFC 3 2 4
ICICI 4 3 3
Others 1 1 1
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To Patna
16
14
12
No. of Respondents
10
Pvt. Employees
8
Govt. Employees
6 Business Man
4
0
3. Which insurance company has gained massive public support

in the current fiscal year?

Insurance
Employees Employees
LIC 12 14 10
HDFC 3 2 5
ICICI 3 2 4
Others 2 2 1
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To Patna
16
14
12
10
Pvt. Employees
No. of Respondents
8 Govt. Employees
Business Man
6
0
From the above table, it is found that from the given three sector Private,
Govt. and Business 12 out of 20 (36%), 14 out of 20 (42%), 10 out of 20
(30%), are in the favour of LIC 3 out of 20 (9%), 2 out of 20 (6%) and 4
out of 20 (12%) are in favour of ICICI, whereas only 2 out of 20 (6%), 2
out of 20 (6%) 1 and out of 20 (3%) favour others company.
4. Do you think insurance policy is in the direction of public

welfare?
Pvt. Sector Govt. Sector Business Man

Yes 13 16 12
7 4 8
No
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To Patna
18
16
14
12
10
No. of Respondents
Yes
8 No
0
The above table shows that from private sector 13 out of 20 (30%) agree
and 7 out of 20 (21%) disagree, from govt. sector 16 out of 20 (48%)
think it right but 4 out of 20 (12%) don’t thick it so and from business
man 12 out of 20 (36%) are in favour of the above statement but 8 out of
20 (24%) don’t favour it.
5. Is retirement bond or pension policy launched by the number

of private player as well as public sector Company in the
direction of secured old age?

Yes 15 18 13
5 2 7
No
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To Patna
20
18
16
14
12
No. of respondents
Yes
10
No
8
6
4
2
0
It is obvious from the above table that 15 out of 20 (45%), 18 out of 20

(54%) and 13 out of 20 (39%) from the given three think retirement bend
or pension policy a legitimate step in the direction of secure old age but 5
out 20 (15%), 2 out of 20 (6%) and 7 out 20 (21%) don’t agree with the
opinion of the majority class.
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To Patna
6. Do you think that risk coverage factor included in Insurance

policy attracts general public towards the policy?

Yes 12 16 11
8 4 9
No
18
16
14
12
No. of respondents
10 Yes
8 No
0
From the above table it is found that 12 out of 20 (36%) from Private
sector 16 out of 20 (48%). From Govt. sector and 11 out of 20 (33%)
thinks risk coverage factor attractive but rest 8 out of 20 (24%), 4 out of
20 (12%) and 9 out 20 (27%) from the above them sector don’t think it so
encouraging towards saving trend whereas 3 out of 20 (9%), 2 out of 20
(6%) and 4 out of 20 (12%) don’t think it so.
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7. What according to you, the term plan that only covers risk and
doesn’t cover maturity benefit on survival at the end of the
term provides security cover over policy holders or a smart
way of accumulative money from policy holders?

Security Cover 11 15 12
9 5 8
Accumulative Money
16
14
12
10
No. of Respondents
8 Security Cover
Accumulative Money
6
0
It is obvious from the above data that 11 out of 20 (33%), from the Pvt.
Sector, 15 out of 20 (45%) from Govt. sector and 12 out of 20 (36%) think
term plan as a security cover but 9 out of 20 (27%), 5 out of 20 (15%)
and 8 out of 20 (24%) from the three respective group think it as a way of
accumulating money insurance company.
8. Do you think that the arrival of so many private companies in

this insurance sector envisage a lot of choice to policy holder?
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To Patna

Yes 16 18 16
4 2 4
No
20
18
16
14
12
No. of Respondents
Yes
10
No
8
0
From analyzing the above data it is found that 16 out of 20 (48%) from
Pvt. Sector, 18 out of 20 (54%) from Govt. sector and 16 out of 20 (48%)
think that the arrival of private players envisage a lot of choice to policy
holder. But 4 out of 20 (12%), 2 out of 20 (6%) and 4 out of 20 (12%)
don’t think it so.
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To Patna
9. Do you agree that customer-centricity and transparency are

the buzzwords for success in this evolving industry?

Yes 18 20 19
2 - 1
No
25
20
15
No. of Respondents
Yes
No
10
0
From this above data, it is found the 18 out of 20 (54%) from Pvt. Sector
and 20 out of 20 (60%) from Govt. Sector 19 out of 20 (57%) from
Business men agree with this statement whereas only 2 out of 20 (6%)
from Pvt. Sector and 1 out of 20 (3%) from Business men do not agree
with this statement.
10. Distribution of Respondents According to Occupation
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To Patna
OCCUPATION RESPONDENTS %AGE

RETIRED 28 14
PRIVATE JOB 22 11
GOVT JOB 85 42
STUDENT 33 17
BUSINESS 32 16
TOTAL 200 100
Out of 200 respondents 14% were retired,11% were private job holders,
42% were government job officials, 17% were students and 16% were
businessman.
Fig :- 1 Respondent’s Occupation
11. Distribution Of Respondents According To Qualification
QUALIFICATION RESPONDENTS %AGE
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To Patna
MATRICULATE 18 9
INTER 22 11
GRADUATE 128 64
POST GRADUATE 32 16
TOTAL 200 100
Out of 200 respondents, 9% were matriculate, 11% were intermediate,

64% were graduate and 16% were post graduate.
Fig :- 2 Respondent’s Educational qualification
12. Distribution of Respondents According to Age
AGE-GROUP RESPONDENTS %AGE

<30 years 26 13
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To Patna
30-40 38 19
40-50 91 46
50-60 17 9
>60 years 28 14
TOTAL 200 100
Out of 200 respondents, 13% were less than 30 years, 19% were between
30-40 years, 46% were between 40-50 years of age, 9% were in between
50-60 years of age and 14% were of more than 60 years of age.
Fig :- 3 Respondent’s Age
13. Distribution of Respondents According to Income
INCOME GROUP(IN RESPONDENTS %AGE

LAKH/ANNUM)
< 1 LAKH 20 10
1-3 LAKH 41 35.5
3-5 LAKH 71 31.5
>5 LAKH 68 23
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To Patna
TOTAL 200 100
Out of 200 respondents, 10% were from less than 1 lakh income group,
35.5% were from income group of (1-3 lakh), 31.5% were in the income
group of (3-5 lakh), and 23% were from more than 5 lakh per annum.
Fig :- 2 Respondent’s Income
14. Distribution of Respondents According to Marital Status
MARITAL STATUS RESPONDENTS %AGE

MARRIED 170 85
UNMARRIED 30 15
TOTAL 200 100
Out of 200 respondents, 85% were married while 15% were unmarried.
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To Patna
Fig :- 5 Respondent’s Marital Status
15. Distribution of Respondents According to Awareness level of

LIC
RESPONSES NO OF %AGE
RESPONDENTS
YES 119 59
NO 81 41
TOTAL 200 100
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To Patna
Out of 200 respondents, 59% were aware of this company rest 41% were
not aware.
Fig :- 6 Respondent’s Awareness level about LIC
16. Distribution of Respondents According to Who Have Insurance

Policy.
RESPONSES NO OF RESPONDENTS %AGE

YES 154 77
NO 46 23
TOTAL 200 100
Out of 200 respondents, 77% were insured while 23% were not insured.
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To Patna
Fig :- 7 Respondent having Insurance Policy
17. Various Insurance Policy Holders
COMPANY RESPONSES
L.I.C. 114
ICICI PRUD LIFE 24
BAJAJ ALLIANZ 20
LIC 16
HDFC SLIC(20) 14
OTHERS 06
BIRLA SUNLIFE 4
TOTAL 198
71
To Patna
Out of 200 respondents, 154 being insured having 198 policies out of
which 57.6% were insured by L.I.C. 12.12% were insured by ICICI Prud
Life, 10% were insured by Bajaj Allianz, 8.08% were insured by H.D.F.C.
SLIC 2.02% by Birla Sunlife respectively.
Fig :- 8 Proportion of different life insurance companies
18. OVERALL SATISFACTION LEVEL OF RESPONDENTS
COMPANY LIC LIC ICICI BA HDFC TOTAL
HIGHLY 1 6 0 0 0 7
SATISFIED
SATISFIED 141 23 3 1 1 169
NEITHER 0 8 5 1 5 19
SATISFIED NOR
DISSATISFIED
DISSATISFIED 2 1 0 0 0 3
HIGHLY 0 0 0 0 0 0
DISSATISFIED
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To Patna
TOTAL 144 38 8 2 6 198
Out of 200 respondents, 154 were insured having 198 different

insurance products of which 7 were highly satisfied, 169 were satisfied,
19 were satisfied/dissatisfied, 3 were dissatisfied and none were highly
dissatisfied for the overall satisfaction level.
Fig :- 9 Respondent’s overall satisfaction level

19. RESPONSES OF RESPONDENTS REGARDING AGENT’S
SERVICES BY DIFFERENT INSURANCE COMPANIES
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To Patna

HIGHLY 12 0 4 0 0 16
SATISFIED
SATISFIED 82 29 2 0 2 115
NEITHER 0 9 2 4 0 15
SATISFIED NOR
DISSATISFIED
HIGHLY 0 0 0 0 0 0
DISSATISFIED
TOTAL 144 38 8 6 2 198
Fig :- 10.1 Respondent’s responses for agents services
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To Patna
Out of 200 respondents 154 were insured having 198 insurance policies.
Out of them 16 were highly satisfied, 115 were satisfied, 15 were not
satisfied/dissatisfied, 52d were dissatisfied none were highly dissatisfied
in respect of Agent Services.RESPONSES BY
20. RESPONDENTS REGARDING CLAIM SETTLEMENT PERIOD

HIGHLY 0 0 0 0 0 0
SATISFIED
SATISFIED 57 30 1 0 2 90
NEITHER 0 0 2 5 0 7
SATISFIED NOR
DISSATISFIED
HIGHLY 0 0 0 0 0 0
DISSATISFIED
TOTAL 144 38 8 6 2 198
insurance policies of which none were found highly satisfied, 90 were
satisfied, and 7 were neither satisfied not dissatisfied and 101 were
dissatisfied and none were highly dissatisfied in respect of claims
settlement period respectively.
75
To Patna
Fig :- 10.2 Responses for claim settlement period by respondent
21. RESPONSES BY RESPONDENTS REGARDING PERSONAL RELATION

HIGHLY 0 0 0 0 0 0
SATISFIED
SATISFIED 11 28 7 3 2 51
NEITHER 0 0 1 3 0 4
SATISFIED NOR
DISSATISFIED
HIGHLY 20 1 0 0 0 21
DISSATISFIED
TOTAL 144 38 8 6 2 198
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To Patna
Fig :- 10.3 Responses for personal relation by respondents
22. RESPONSES BY RESPONDENTS REGARDING RETURN ON

INVESTMENT
HIGHLY 20 12 0 0 0 32
SATISFIED
SATISFIED 93 20 7 3 2 125
NEITHER 0 4 1 2 0 7
SATISFIED
NOR
DISSATISFIED
HIGHLY 20 0 0 0 0 20
DISSATISFIED
TOTAL 144 38 8 6 2 198
insurance policies of which 32 were highly satisfied, 125 were satisfied, 7
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To Patna
were neither satisfied nor dissatisfied, 14 were dissatisfied and 20 were

highly dissatisfied in the respect of return on investment respectively.
Fig 10.4 Responses for return on investment by respondent

Table 10.5
23. RESPONSES BY RESPONDENTS REGARDING RISK COVERAGE

LIC LIC ICICI BA HDFC TOTAL
HIGHLY 128 2 6 0 0 136
SATISFIED
SATISFIED 16 31 2 4 2 55
NEITHER 0 5 0 2 0 7
SATISFIED NOR
DISSATISFIED
HIGHLY 0 0 0 0 0 0
DISSATISFIED
TOTAL 144 38 8 6 2 198
Out of 200 respondents,154 were insured having 198 different insurance

policies of which 136 were highly satisfied, 55 were satisfied, 7 were
neither satisfied nor dissatisfied, none were dissatisfied or highly
dissatisfied in respect of risk coverage benefits.
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To Patna
Fig 10.5 Responses for risk coverage benefit by respondents
SWOT
ANALYSIS
79
To Patna
SWOT ANALYSIS
Strength
 Agent’s service of LIC India insurance ltd is comparatively strong
as 76% of its customer are satisfied with its agent services.
 Its also a good sign for the company where in the regards in the
claim settlement period is very higher 78%. It means 78% of
customers are satisfied by the way company is performing in this
area.
 Financial consultant is maintaining strong personal relationship
with their customer. 73% of its customer is satisfied with its
personal relationship.
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To Patna
 The return on investment is very high 84.2% of its customer is
satisfied with its return on investment.
 The risk coverage of LIC is comparatively higher 86% of its
customer were satisfied with its risk coverage.
Weakness
 Despite the awareness level of 59% still of the respondent joint
know the working of the LIC in the insurance field .
 Being close rival of LIC and other and for dominant position
amoung private player LIC India insurance ltd should have
preformed better in the area of personal relationship with
customer and services performed by the agent.
 It can improve customer care service by agents .
 More branches in the patna & by resulting quality personal for
office & field service .
Opportunity
 The insurance market in patna is booming so LIC India
insurance ltd. Insurance has great opportunity to the market .
 People perception toward private insurance player has
drastically changed. Now, they are not apprehensive about their
81
To Patna
operation . this provides a great opportunity to LIC India
insurance ltd attract potential customer.
Threats
 Presence of big player like HDFC & ICICI which have vast
resource, plus explanation plan of its operation branches of ICICI
is definitely a big threat for LIC .LIC India Insurance ltd will
have to tap more potential customer.
 Booming insurance sector in patna has attracted many private
players. This would definitely increase the competition for
market share in the insurance market . this is auther threat to
LIC India insurance co ltd.
FINDING
CONCLUSION &
SUGGESTION
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To Patna
FINDINGS
 There are numerous brands floating insurance policies in the
market. Out of them some important brands are LIC, SBI
Life, Prudential ICICI, BAJAJ Allianz, LIC etc.
83
To Patna
 During my study I found that most people had a life insurance
policy. I also found that different age groups have different
policy preferences.
One interesting
CONCLUSION
1. Awareness level of LIC was 89% i.e. 89 respondents out if 100
were aware about LIC India insurance co ltd.
2. Out of 100 respondent 72 were insured 99 different policies of
which 58 were of LIC India insurance co ltd .
3. The market share of LIC was 67.07%.
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To Patna
4. 25% of LIC India insurance co ltd holder were highly satisfied
while 50% of them were satisfied and 25% were neither satisfied
nor dissatisfied regarding overall satisfaction level by
respondents .
5. people responses regarding “agents services ” of LIC India
insurance co ltd. Life Insurance weren’t found encouraging
.despite being a new private players 76% of respondents were
found satisfied by the agent services.
6. People response regarding “claim settlement period ” of LIC
India insurance co ltd were found good 78% were satisfied.
7. People perception regarding “return on investment” of LIC India
insurance co ltd was found appreciable (84.8% were found
satisfied).
8. People perception regarding “Personal relation ” of LIC were
found 73.6%
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To Patna
SUGGESTION
 LIC can do some serious workout for its brand awareness . For
this purose the company can pursue some effective promotional
scheme .
 It’s also necessary to say , LIC India insurance co ltd should
look at the expansion of its branches because the environment
of patna and mindset of panties are changing . So LIC India
insurance co ltd should changed also.
 Being a super brand in the insurance sector , LIC India insurance
co ltd insurance should come up with an innovative ideas for
tapping the local customer . It should also imrove the customer
and agents relationship.
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To Patna
 Customer meet programmed can be effective if it is implement
with keen interest .It’s not only for providing a sense of integrity
& sensibility to the customer but definitely attract large pool of
actual & potential customer.
 The LIC India insurance co ltd can give facility of giving loans at
subsidized rate from its financial institution to its insurance
clients . This all attract more potential customer.
BIBLIOGRAPHY
APPENDIX
QUESTIONNAIRE
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To Patna
BIBLIOGRAPHY
Books
1. Marketing Management : Philip Kotler and Kevin Lane

Keller
Twelfth edition (2007)
Person Prentice Hall
2. Marketing Research : G.C. Berry

Third edition (2007)
Tata McGraw Hill Publishing
Company Limited, New Delhi
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To Patna
NEWS PAPERS AND MAGZINES
1. Economics Times
2. Business Standared
3. Business word (Sept. 17)
4. 4P’s Business Policy & Marketing (aug 17)
5. The Times Of India
6. Outlook Money (aug 17)
WEBSITES
www.irdaindia.com
www.LIC.co.in
QUESTIONNAIRE
1. Name :MR/MRS………………………………………………………………………..
2. Gender: Male Female

3. Address: ………………………………………………………………………………………
………………………………………………………………………………………
……………………………………………………………………………………..
4. Qualification:…………………………………………………………………………….
5. Occupation:……………………………………………………………………………….
6. Age Group (Yrs):
a. <30 b.30-40
C.40-50 d.50-60
e.>60
7. Income Group (Annually in years)

a. 0-1 Lac b.1-3 Lac
c. 3-5 Lac d.>5 Lac
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To Patna
8. Are you married?

a. Yes b. No
9. Do you use insurance services?

a. Yes b. No
10. Which type of insurance service you are using

a. Life Insurance b.General Insurance
11. Which insurance company are you using?

a. LIC b. ICICI Prudential
c. Bajaj Alliance d. LIC
e. HDFC standard f. Birla Sun life
12.Why you use this particular company for insurance

a. Better Service b. Quick & Prompt
c. Convenient premium amount
d. Wide range of products
13. Are you satisfied from present company
a. Yes b. No
14. If ‘no’ the reason for dissatisfaction is/are

a. Unawareness of different policy
b. Hostile Attitude of agent
c. Delay in getting claim
d. Vague payment of Premium Policy
15. Have you heard about met life India insurance company ltd.
a. Yes b. No
16. How you rate satisfaction on the basis of features and attributes
provided by different insurance companies.
Feature Highly Satisfied Neighter Dissatis Highly

/attributes satisfied satisfied fied disatisfied
nor
dissatisfied
90
To Patna
Agents
service
Claim
settlement
period
Personal
relationshi
p
Premium
collection
Risk
coverage
benifit
Signature:
-----------------------
Remarks :
-----------------------
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The Study Of Policy And Plans Of LIC and Its Impact On Market Position With Reference

INTRODUCTION TO THE RESEARCH

Conceptual Perspective of the topic

Why to study market share and customer’s

Objective of the study.

Scope of the study.

Method of data collection

Time span of the field work

INTRODUCTION TO THE RESEARCH TOPIC

Insurance is a social device where uncertain risks of

individuals may be combined in a group and thus made

more certain - small periodic contributions by the

individuals provide a found out of which those who suffer

losses may be reimbursed. In addition to being a means to

protect oneself, the insurance Industry is an efficient

conduit for the saving of people to be channeled towards

economic growth. In India, the Insurance Industry7 is more

than 150 years old. Today, it is monopolized by two PSU's

in their respective fields of life and General Insurance.

However, with the successful passage IRDA Bill through

both houses of parliament in December 1999 the sector has

been opened up to private players. This will provided

much. Needed impetus to the Industry and will improve the

quality of service and products and will also increase

employment opportunities. There are still some issues their

need to be sorted out, particularly with regard to the

status of intermediaries as envisaged by the Insurance

OBJECTIVE OF THE STUDY

It is a common notion that the study conducted during summer training

trainees have to go through to get M.B.A degree.

However, conducting a study only to present report does not sound

justifiable, there has to be some noble objectives to it. This objective in

make relevant comment upon them.

In the present case the researcher overall objective was to as much

information on LIC Company from different section of the market. The

researcher’s main objectives during the study were :

insurance companies in some selected areas of Patna market.

 To identify various attributes of Life Insurance products.

 Find out the level of satisfaction of the buyers on different

 To identify strength weakness, opportunity and threats for LIC co.

 To make comparative study between LIC Policy and other major

SCOPE OF THE STUDY

level among different buyers of insurance products. The study was

conducted in the mithapur & Mahendru of Patna. The variable studied

were market share and customer satisfaction level with various

attributes of life insurance products. Project was done in the month of

June and July 2017.

Marketing research is a systematic gathering, recording and

analysis of data. During the course of conducting the study the

information was gathered mainly through primary source.

1.6 DATA NEEDED

 How many persons own life insurance products?

 How many different life insurance products flood in the market?

 Satisfaction level prevailing among different buyer’s group.

 Rate of satisfaction on the basis of different features provided by

different companies in the market.

 A non-random convenience sampling from different job

Area surveyed : Mithapur, Gardanibagh, Krishna Apartment,

Boring road, Mahendru, Patna