SUMMER TRAINING PROJECT REPORT ON

A STUDY OF CONSUMER PERCEPTION ABOUT LIFE

INSURANCE
AT LIFE INSURANCE CORPORATION OF INDIA

FOR THE PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF THE DEGREE OF M.COM {BI}

OF PANJAB UNIVERSITY, CHANDIGARH

Under the Guidance of: Under the Supervision of:

Mr. Satyawan Mehra Prof. Geetika Talwar

SUBMITTED BY:

JASHAN

M.COM (BI) [2023-2025]

UNIVERSITY ROLL. NO - 32113

Post Graduate Department of Commerce

S.C.D. Government College Ludhiana

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 ACKNOWLEDGEMENT
It gives me immense pleasure to present this project report on A Study on Consumer
Perception About Life Insurance carried out at LIFE INSURANCE CORPORATION OF
INDIA. No work can be carried out without the help and guidance of various
persons. I am happy to take this opportunity to express my gratitude to those who
have been helpful to me in completing this project report.

At the outset I would like to thank Prof. GEETIKA TALWAR for their valuable advice
and guidance during my project for timely help concerning various aspects of
project. I would be failing in my duty if I do not express my deep sense of gratitude
to him without his guidance it wouldn’t have been possible for me to complete this
project work.

Lastly I would like to thank my parents, friends and well wishers who encouraged
me to do this research work and all those who contributed directly or indirectly in
completing this project to whom I am obligated to.

PLACE: Ludhiana JASHAN

M.COM [BI]

32113

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 ABSTRACT
The Summer Training in an organisation is an integrated part of M.COM (BI)
program. It exposes students to the problem areas and provides knowledge
as how to face these problem areas and provide confidence as how to solve
these problems. There is a gap between theory and practice and the training
is aimed at removing this gap and to increase the process of communication
between future manager and industrial sector.

In this project I study about the Consumer Perception about Life Insurance at
LIFE INSURANCE CORPORATION OF INDIA. By collecting the data from
their financial statements and their Existing Clients.

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 DECLARATION

I JASHAN, student of M.COM-BI, S.C.D Government College, Ludhiana

declaring that the information given in this Project work is correct and the
data represented in this Project is true as far as I know.

I hereby also declare that all the work in this Project is my real work and is
not copied from anywhere.

Place: Ludhiana JASHAN

M.COM-B.I.

32113

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 CONTENTS OF PROJECT REPORT

Sr. No. Contents Page No.

1. EXECUTIVE SUMMARY 7

2. INTRODUCTION TO THE PROJECT 8-9

OBJECTIVES OF THE PROJECT

SCOPE OF THE STUDY

LIMITATIONS OF THE STUDY

3. INTRODUCTION TO THE COMPANY 10-15

MISSION OF LIC

VISION OF LIC

HISTORY OF LIC

IPO

STRUCTURE

OPERATIONS

HOLDINGS

4. MAIN OBJECTIVES OF THE LIC 16

5. TYPES OF PLANS AND POLICIES 17-22

LIC’s JEEVAN PRAGATI

LIC’s JEEVAN LABH

LIC’s SINGLE PREMIUM ENDOWMENT PLAN

LIC’s NEW JEEVAN ANAND

LIC’s JEEVAN LAKSHYA

LIC’s BIMA DIAMOND

LIC’s NEW BIMABACHAT

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 LIC’s NEW CHILDREN MONEYBACK PLAN

LIC’s JEEVAN TARUN

LIC’s AMULYA JEEVAN 2

LIC’s BHAGYA LAKSHMI PLAN

6. BENEFITS TO INSURANCE POLICYHOLDERS 23-24

7. SWOT ANALYSIS OF LIC OF INDIA 25-32

8. DATA ANALYSIS AND INTERPRETATION 33-46

9. MARKETING STRATEGIES OF LIC 47-51

10. WHY TO OPT FOR LIC’s LIFE INSURANCE PLANS 52-53

11. AWARDS AND ACHIEVEMENTS 54-55

12. CONCLUSION 56

13. REFERENCES 57

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 EXECUTIVE SUMMARY
The Project aims at understanding the perception of customer towards Life Insurance
Corporation of India (LIC). Research has demonstrated conclusively that entry of private
players, LIC has lost considerable market share to private players although both market
size and insurance premier, are on the rise. In India life insurance products were/are
bought more as investments for tax savings rather than risk protection. The brand
preference in this category has never been explored in depth. It has been largely assumed
that life insurance is an unsought product and customer satisfaction a ‘paradox’. The
proposition that has been examined is that customer satisfaction can provide business
opportunities in this under penetrated market. It can be a vehicle for identifying new
avenues for cross selling, up selling and referrals. It also attempts to identify the
dimensions of service quality which are important to a customer. SERVQUAL scale was
used to discern the different dimensions of service quality and mean scores were used to
find out if there is any gap between customer expectations and perceptions. Primary
research was used to collect data on RATER scale among LIC customer.

Retaining a customer is four times cheaper than acquiring a new one. The retention of the
customers is of utmost importance in the insurance industry in specification. Insurance
business is of the relationship building process, where one customer leads to the building
of other one. A satisfied customer is like a word of mouth advertisement for the company.
The needs of the existing customers should be identified and satisfied well rather than
only concentrating at the new accounts. All possible measures needs to take to retain the
customers as it is lesser costlier as well as provides stability to the business.

Insurance is one product which is not demanded by a customer, but supplied to him by
massive education and drive marketing. Insurance ought to be bought not sold. The new
concept of demand side innovation focuses more on customer’s social and economic
reality striving to 42 deliver maximum values to the customer at an affordable price.
Therefore, when the customer becomes the primary focus including him in the invention
process becomes mandatory.
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 INTRODUCTION TO THE PROJECT:

The Project entitled “A STUDY ON CUSTOMER PERCEPTION TOWARDS LIC” deals with the
study of the life insurance corporation of India. The Business of Insurance is related to the
protection of the economic values of the assets”. Every human being has the tendency to
save to protect him from risks or events of future. Insurance is one form of savings where
in people try to assure themselves against risks or uncertainties of future. It is assurance
against risks or events or losses. People can save their earnings either in the form gold,
fixed assets like property or in banking and insurances. All the savings of people of a
country account for gross domestic savings. In India, although savings rate is high but
people prefer to invest either in gold or fixed assets so that they can make money out of
it. Hence insurance sector is still untapped in India.

Insurance is a tool by which fatalities of a small number are compensated out of funds
(premium payment) collected from plenteous. Insurance is a safeguard against uncertain
events that may occur in the future, hence study on perception of people or customers
towards a specific insurance company can carry out the solutions and extension to the
present requirements and facilities.

Insurance is used to share the financial losses that might occur to an individual or his
family on the happening of specified events. The loss arising from such events are shared
by all the insured in the form of premium. The uncertainty is changed to certainty by
insuring property and life because the insurer promises to pay a definite sum at damage
or death.

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 ❖ OBJECTIVES OF THE PROJECT:

• To study the perception of customer towards products offered by LIC of India.

• To find out the important criteria that people think about before investing in a life
insurance policy.

• To find out whether gender bias involved in investing life insurance or not.

• To find out the awareness of Life insurance Corporation among the people

❖ SCOPE OF THE STUDY

• The result of this research would help the company to have a better understanding
about the consumer’s perception towards life insurance products offered by LIC of India.

• The study helps the LIC of India to focus the consumer’s preferences and expectations
on the product which they offer.

❖LIMITATIONS OF THE STUDY

• The sample size chosen for the questionnaire was only 200 and that may not represent
the true picture of the consumer perception about the Life Insurance sector.

• The selection of people for the questionnaire will be done on the basis of convenient
random sampling, so, there were certain cases in which the people selected did not have
any life insurance policy, so they could not give any positive feedback regarding the
important criteria to be considered before taking a life insurance policy.

• The product offered by different companies had different options and names in them,
so at the time of comparison it will become very difficult. The parameters for comparison
will also different in the selected companies.

• Resource Constraint

• Time Constraint
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 INTRODUCTION TO THE COMPANY

• LIFE INSURATION CORPORATION OF INDIA (abbreviated as LIC) is an Indian

government owned insurance and investment corporation. It is under the owned
insurance and investment corporation.
• It is under the ownership of Ministry of Finance, Government of India.
• The Life insurance Corporation of India was established on September 1, 1956,
when the Parliament of India passed the Life Insurance of India Act that
nationalized the insurance industry in India. Over 245 insurance companies and
provident societies were merged to create the state-owned Life Insurance
Corporation of India.

• As of 2019, Life Insurance Corporation of India had total life fund of ₹28.3 trillion.
The total value of sold policies in the year 2018–19 is ₹21.4 million. Life Insurance
Corporation of India settled 26 million claims in 2018–19. It has 290 million policy
holders.

MISSION OF LIC: -
“Ensure and enhance the quality of people through financial security by providing
products and services of aspired attributes with competitive returns, and by
rendering resources for economic development.”

VISION OF LIC: -
“A trans-nationally competitive financial conglomerate of significance to societies
and pride of India.”

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

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life
Insurance Company started by Europeans in Calcutta was the first life insurance company
on Indian Soil. All the insurance companies established during that period were brought up
with the purpose of looking after the needs of European community and Indian natives
were not being insured by these companies. However, later with the efforts of eminent
people like Babu Methylal Seal, the foreign life insurance companies started insuring Indian
lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums
were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of
first Indian life insurance company in the year 1870, and covered Indian lives at normal rates.
Starting as Indian enterprise with highly patriotic motives, insurance companies came into
existence to carry the message of insurance and social security through insurance to various
sectors of society. Bharat Insurance Company (1896) was also one of such companies
inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance
companies. The United India in Madras, National Indian and National Insurance in Calcutta
and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-
operative Insurance Company took its birth in one of the rooms of the Jadranko, house of
the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance
and Swadeshi Life (later Bombay Life) were some of the companies established during the
same period. Prior to 1912 India had no legislation to regulate insurance business. In the
year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The
Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and
periodical valuations of companies should be certified by an actuary. But the Act
discriminated between foreign and Indian companies on many accounts, putting the Indian
companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business. From
44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with
total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance
companies many financially unsound concerns were also floated which failed miserably. The
Insurance Act 1938 was the first legislation governing not only life insurance but also non-
life insurance to provide strict state control over insurance business. The demand for
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 nationalization of life insurance industry was made repeatedly in the past but it gathered
momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the
Legislative Assembly. However, it was much later on the 19th of January, 1956, that life
insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian
companies and 75 provident were operating in India at the time of nationalization.
Nationalization was accomplished in two stages; initially the management of the companies
was taken over by means of an Ordinance, and later, the ownership too by means of a
comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on
the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st
September, 1956, with the objective of spreading life insurance much more widely and in
particular to the rural areas with a view to reach all insurable persons in the country,
providing them adequate financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate
office in the year 1956. Since life insurance contracts are long term contracts and during the
currency of the policy it requires a variety of services need was felt in the later years to
expand the operations and place a branch office at each district headquarter. Re-
organization of LIC took place and large numbers of new branch offices were opened. As a
result of reorganisation servicing functions were transferred to the branches, and branches
were made accounting units. It worked wonders with the performance of the corporation.
It may be seen that from about 200.00 crores of New Business in 1957 the corporation
crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to
cross 2000.00 crore mark of new business. But with re-organisation happening in the early
eighties, by 1985-86
LIC had already crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 113 divisional offices, 8
zonal offices, 1381 satellite offices and the corporate office. LIC’s Wide Area Network covers
113divisional offices and connects all the branches through a Metro Area Network. LIC has
tied up with some Banks and Service providers to offer on-line premium collection facility
in selected cities. LIC’s ECS and ATM premium payment facility is an addition to customer
convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned at
Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many
other cities. With a vision of providing easy access to its policyholders, LIC has launched its
SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the
customer. The digitalized records of the satellite offices will facilitate anywhere servicing
and many other conveniences in the future.

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 LIC continues to be the dominant life insurer even in the liberalized scenario of Indian
insurance and is moving fast on a new growth trajectory surpassing its own past records.
LIC has issued over one crore policies during the current year. It has crossed the milestone
of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of
16.67% over the corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same motives which
inspired our forefathers to bring insurance into existence in this country inspire us at LIC to
take this message of protection to light the lamps of security in as many homes as possible
and to help the people in providing security to their families.

IPO: -
Finance Minister Nirmala Sitharaman announced a proposal to conduct an initial public
offering for LIC in the 2021 Union Budget. The IPO is expected to be held in FY22. The
Government of India will remain the majority shareholder after the public listing. Ten
percent of shares are proposed to be allotted to existing LIC policyholders. In year 2021,
government of India had proposed to significantly enhance the authorised capital of Life
Insurance Corporation of India (LIC), to INR 250bn ($3.4bn) to facilitate its public listing
scheduled for the next fiscal year which will begin on 1st April.

STRUCTURE: -

The LIC's executive board consists of Chairman, currently M R Kumar, and Managing
Directors, Vipin Anand, T. C. Suseel Kumar, Mukesh Kumar Gupta and Raj Kumar
The Central Office of LIC is based out of Mumbai which sits The Chairman, all four Managing
Directors, and all Executive Directors (Department Heads). LIC has a total of 8 Zonal Offices
namely Delhi, Chennai, Mumbai, Hyderabad, Kanpur, Kolkata, Bhopal & Patna.

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 OPERATIONS: -

Today LIC functions with 2048 fully computerized branch offices, 8 zonal offices, around
113 divisional offices, 2,048 branches and 1408 satellite offices and the Central Office; it also
has 73 customer zones and 25 metro-area service hubs located in different cities and towns
of India. It also has a network of 1,537,064 individual agents, 342 Corporate Agents, 109
Referral Agents, 114 Brokers and 42 Banks for soliciting life insurance business from the
public.
The LIC has 22 departments each headed by an Executive Director namely Marketing, Bank
assurance (B&AC), Corporate Communication, Personnel, CRM, Direct Marketing, E&OS,
F&A, IT/BPR, Inspection, Investment, SBU/Estates, Investment Operations, P&GS, Actuarial,
Chairman Sect, F&A, Micro Insurance, RTI, HRD, Engineering, and Vigilance.
The LIC follows a horizontal line of command & vertical line of command, while each
department is headed by an Executive Director, the Zonal offices are headed by a Zonal
Manager who oversees all the departments & divisions of the Zone – making him de facto
CEO of the Zone. The zonal departmental heads are Regional Managers. Divisions are
headed by Sr. Divisional Manager(I/C) who oversees all the departments & branches of the
division. There are 3 layers of Horizontal Management namely Senior Divisional
Manager(I/C), Zonal
Manager(I/C) & the Chairman/MD. There are also 3 layers of vertical management namely
Managers of Divisions, Regional Managers of Zonal Office & the Executive Directors of
Central office. Horizontal Management is considered key managers of the corporation.

HOLDINGS: -

Type
Statutory
Corporation established by an
Act of Parliament-
LIC Act 1956

Insurance and Financial

Industry
services

Founded 1 September 1956 (64 years ago)

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 Headquarters Mumbai, India

•M R Kumar
Key people
(Chairman)
• Vipin Anand
(Managing Director)
• Siddharth Mohanty
(Managing Director)
• Rajkumar
(Managing Director)
Products • Life insurance
• Health insurance
• Investment
management
• Mutual fund
Revenue ₹56,078,439 lakh
(US$79 billion) (2019)
Operating ₹270,348 lakh (US$380
income million) (2019)
Net income ₹268,849 lakh (US$380
million) (2019)
Total assets ₹311,184,727 lakh
(US$440 billion) (2019)
Owner Government of India (100%)
Number of 114,000 (2020)
employees
Parent Ministry of
Finance , Government of India
Subsidiaries • LIC Housing Finance
• LIC International Ltd
• LIC Cards Services Ltd
• LIC Mutual Fund Ltd

• LIC Pension Fund Ltd

• Industrial Development
Bank of India

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 The Main Objectives Of Life Insurance
Corporation Of India (LIC) Are :

1. Spread Life Insurance widely and in particular to the rural

areas: LIC aims to reach out to the masses, especially in rural areas, to provide financial
security and protection.

2. Maximize mobilization of people's savings: LIC seeks to mobilize

savings from individuals and channel them into productive investments.

3. Hold and invest funds to the best advantage of the

policyholders: LIC aims to invest policyholders' funds prudently to generate returns
and ensure the company's financial stability.

4. Provide adequate customer service: LIC strives to deliver excellent

customer service, ensuring timely claims settlement, policy servicing, and customer
support.

5. Conduct business with integrity and fairness: LIC is committed to

maintaining high ethical standards, transparency, and fairness in all its operations.

6. Contribute to the economic development of the country:

Through investments, LIC aims to contribute to India's economic growth and
development.

7. Provide social security to the citizens: LIC offers various insurance

products to provide financial protection and social security to individuals and families.

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 PLANS AND POLICY: -
Types of LIC Life Insurance Plans ➢
LIC's Jeevan Pragati
A non-linked plan constituted in such a way that after every five years of the policy, the
risk cover will automatically increase. It is best suitable for retirement collection with the
cover against accident. An endowment plan with profits makes it a combination of savings
and financial protection.

• Entry Age- This policy is available for individuals from 12 years to 45 years.
• Term Period- The term period is from 12 years to 20 years.
• Death Benefits- In the case of the death of the policyholder, the nominee gets the
sum assured with the bonus, and is either ten times the total annual premium or is
calculated as per the terms of the policy.
• Maturity Benefits- The sum assured is paid with the bonus and the reversionary bonus
for the full term of the policy. Minimum sum assured is Rs.1, 50,000/-. Maximum age
at maturity is 65years. Maturity amount is tax-free under section 10 (10D).
• Tax Benefit - The amount of premium paid is exempted under section 80C.
• Loan Facility- It is available after you have paid a premium for three years.
Riders Available: The optional riders are for accidental death and disability.

 LIC’s Jeevan Labh

This policy is limited premium paying and is not linked to share markets. It is an
endowment plan with profits and hence the holder gets the sum assured with bonus and
other benefits.

• Premium- Premium paying period is lesser than the policy term.

• Entry Age – The age of the policyholder should be between 8 years and 59 years.

• Term Period- The Policy has a term period of 16 years to 25 years.

• Grace Period- There is a grace period of 30days for paying yearly, half yearly and
quarterly premium, and a grace period of 15days in case of monthly premium.

• Loan Facility- Once you have paid the premium for three years, you can avail the loan.

• Tax Benefits- The amount of premium paid is exempted under section 80C and the
maturity amount is tax-free.
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  LIC’s Single Premium Endowment Plan
This plan asks the policyholder to pay the lump sum of the premium as a single payment
at the start of the plan. This is an endowment plan with bonus, in addition to other
benefits.

• Entry Age- The plan is available for individuals between the age of 90days and 65years.

• Sum Assured- The sum assured is paid in both the cases – once the policy tenure is
complete and in the case of sudden demise of the policyholder. The sum assured is
paid with a bonus in both the cases.

• Loan Facility- Loan facility is available after the first year of the policy.

• Guaranteed Surrender Value- The holder gets 70% of the single premium paid if the
policy is surrendered within 12months of the commencement of the policy; and
receives 90% of the premium paid from the second year onwards.

• Tax Benefits- The premium paid is exempted under the section 80C and the maturity
amount is tax-free under the section 10(10D).

• Term Period– The policy has a term period of 10years to 25 years.

• Maturity Age - The age of the insured should be between 18 years and 75years.

➢ LIC’s New Jeevan Anand

The plan is a combination of whole life plan and an endowment plan. The plan continues
to provide coverage in case of the sudden death of the insured and even after the maturity
of the plan.

• Maturity- A traditional endowment plan with the added feature that even after the
maturity, the plan continues to be in force.

• Tax Benefits- Premium paid and the maturity amount is exempted under section 80C
and 10(10D).

• Entry Age- It is available for individuals between the age of 18 years and 50years.

• Grace Period- A grace period of 30days is applicable.

Rider Available: LIC’s Accidental death and disability benefit rider are applicable.

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 ➢ LIC’s Jeevan Lakshya

This is a conventional endowment plan with profits. The policy is useful for minors and
offers a lump-sum amount irrespective of the survival of the insured at the time of policy
maturity

• Sum Assured- Minimum sum assured is Rs.1,00,000/-.

• Entry Age – The insured should be between 18 years and 50years of age and the
maturity age is 65years.

• Premium Tenure- Irrespective of the tenure of the policy, the premium tenure is 3
years.

• Maturity Benefits- Sum Assured plus Bonus and the Final Additional Bonus (FAB).

• Death Benefits- Sum assured (110% of the premium paid) plus bonus and FAB.

Riders Available:

• LIC’s Accidental death and disability benefit rider

• LIC New Term Insurance Rider

➢ LIC’s Bima Diamond

It is a perfect plan for individuals who are looking for a short-term investment with
periodic guaranteed return and added benefits.

• Extended Protection Period- Your protection is extended, even after the completion
of the policy tenure, to half of the policy tenure.

• Money Back- After every 4th year of the policy, you get an assured amount as money
back.

• Addition Cover Period- In the case of non-payment of the premium for full five policy
years, an Auto Cover Period of two years is offered.

• Maturity Benefits- The sum assured and the loyal additions are paid at maturity.

• Maturity is calculated as – 55% of the basic sum assured for 16 years and 45% of the
basic sum assured for 20 and 24 years.

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 Riders Available:

• LIC’s Accidental death and disability benefit rider

• LIC New Term Insurance Rider.

LIC’s New Money Back Plan -20 Years

This plan is a money-back traditional endowment plan. It is a non-linked plan. The survival
benefits are disbursed after the completion of every fifth year of the policy.

 Policy Term– The policy is valid for 20 years

 Minimum Sum Assured – Minimum sum assured is Rs.100,000/-

 Survival Benefits- 20% of the sum assured is paid on the 5th, 10th, and 15th year of the
policy.

 Death Benefits- The nominee receives the sum playout plus the bonus and the FAB. It
is ten times the total sum of the annual premium or 125% of the basic sum assured.

 Maturity Benefits- The balance 40% of the sum is paid with Bonus plus FAB to the
policyholder.

➢ LIC’s New BimaBachat

It is a traditional single premium endowment plan. However, the survival benefits are paid
just like in a money back plan.

• Survival Benefits- After every three years, if the insured is alive, 15% of the basic sum
assured is paid as survival benefit.

• Maturity Benefits- The complete single premium along with Loyalty Addition is paid.

• Death Benefits- In the case of death of the policy tenure the complete, sum assured
along with the Loyalty addition are paid to the nominee.

➢ LIC’s New Children’s Money Back plan

A traditional money back policy specially designed for the benefit of children, even in the
case of the absence of parents. The child’s life is also covered.

20
 • Life Cover of Child- If the age of the life assured is less than 8 years, the risk cover
starts one day before the commencement date of two years.

• Survival Benefits- The survival benefits are disbursed once the life assured has
attained the age of 18years and is paid @20% of the sum assured. It is paid every policy
anniversary year.

• Death Benefits- If the life assured dies before the commencement of the risk, the paid
premiums are returned. The benefits of sum assured plus bonus and FAB is paid in case
the death is after the commencement of risk.

• Tax Benefits- The premium paid and the sum assured are exempted under the section
80C and 10(10D).

• Entry Age- 0 years to 12 years.

• Policy Term- 25years.

➢ LIC’s Jeevan Tarun

This is a participating endowment plan for children up to the age of twelve years. There
are four options to receive the maturity and survival benefits. It is best suited for a child’s
education.

• Premium Period- 20 years but the policy continues till 25 years.

• Risk Cover- Either at the age of 8years or two years after the commencement of the
policy.

• Survival Benefits- The last five years, when the policyholder is not paying the
premium, he has the option of receiving the survival benefits in four different forms-
0%, 5%, 10% and 15% of the sum assured.

• Maturity Benefits- The balance sum assured and the bonus are paid as the maturity
benefits after the completion of tenure of the policy.

• Death Benefits- In the case of the death of policyholder, the nominee gets the sum
assured at the time of death and the acquired bonus. This is irrespective of the amount
paid as the “survival benefit”.

• Tax Benefits- The premium paid and sum assured are exempted under section of 80C
and 10(10D).
21
 Riders Available:

• LIC’s Premium Waiver Benefit Rider is offered.

➢ LIC's Amulya Jeevan 2

This is purely a term plan whereby in case the insured dies within the policy tenure, the
nominee gets the sum assured or the death benefits.

• Sum Assured - Minimum Sum Assured is Rs.25Lacs. However, it can be as high as 1

crore.

• Tenure - The tenure can be as long as 35years.

• Tax Benefits - The Premium paid and the sum assured are exempted under the section
80C and 10(10D).

• Entry Age - Entry Age is 18 years to 60years.

• Grace Period - Grace Period of 30days is available to pay the premium.

➢ LIC Bhagya Lakshmi Plan

This micro insurance policy is specially designed for lower- income groups and has
features of investment, savings, and insurance. Unlike any term plan, it also offers Maturity
Benefits to the surviving policyholder.

• Death Benefit- In case of sudden death of the policyholder within the policy tenure,
the nominee gets the assured sum.

• Maturity Benefits- A total of 110% of the premium paid is paid to the live policyholder
at the time of maturity.

• Surrender Value- Depending on the premium paying term of below or above ten
years, the surrender value is calculated. If surrendered after paying a premium for ten
years or more, the surrender value is calculated @ after three full year’s premiums. If
the surrendered within ten years, then the SA is calculated @ after two full year’s
premiums.

22
 Benefits to Insurance Policy Holder

(1) Tax Benefits:

Relief in income tax is available for amount paid by way of premium for life insurance.
Investment qualifying for rebate viz. insurance premia, premium paid toward annuity
plans for life insurance are specified under section 88(2) of the income tax Act.

(2) Safety:
In life insurance, on death, the full sum assured is payable (with bonuses wherever
applicable) whereas in other saving scheme, only the amount (saved with interest) is
payable.

(3) Liquidity:
Loans can be raised on sole security of the policy which has acquired a paid-up value.
Besides, a Life Insurance policy is also generally accepted as security for even a
commercial loan/housing loan.

(4) Aid to Thrift:

Life Insurance encourages ‘thrift’ Long term saving can be made in a relatively painless
manner because of ‘easy instalment facility’ (Premium can be made through monthly,
quarterly, half yearly or yearly instalment). The Salary Saving Scheme, popularly known as
SSS provide a convenient method if paying premium each month through deduction
from one’s salary. The Salary Saving Scheme can be introduced in an institution of
establishment subject to specified terms and condition.

(5) Money at the time of Requirements:

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 or
marriage provision or even periodical needs for cash ones a predetermined stretch of
time. Alternatively, policy money can be so arranged to be used for other investments
subject to certain conditions, loans are granted to policy holders for house or for
purchase of flats.

23
 (6) Insurance affords peace of mind:
The security is the prime motivating factor. The security ends the tension and finally leads
to peace to mind.

(7) Insurance Eliminate Dependency :

At the death of husband or the father or any lead person, the family would suffer a lot. The
insurance is here to assist then like to provide adequate amount at the time of suffering.
The economic dependency if the family is reduced.

(8) Insurance encourages savings:

In most of the life policies, element of saving is predominant, these policies combine of
programme of Insurance and saving. Saving with insurance has certain extra advantage.

(9) Economic Growth of the country:

For the growth of the country insurance provides string hand and mid to protect against
loss of death. From the insurance government get more financial resource and utilize
strengthen the economic condition of the country.

24
 SWOT ANALYSIS OF LIC OF INDIA –

It involves an in depth study of the strength and weakness of the provided organization
and it also provides information to the promoter, consultant, other agencies and helps in
long term viability of the project.

Strength:

• It is the oldest and most well experienced player having a Pan India presence.

• LIC has a strong and very well developed distribution network.

• It is having a huge consumer base and is evolved as one of the most powerful
brands of the country. 4. It has a large product portfolio and claim settlement is
easier to get.

• It has the advantage of government guarantee is accompanied with it.

• Largest insurance Company in the world in Customer Base (23 crore customers)

• No.1 insurance company in the world in terms of agency (about 1.1 Million
agents)

• LIC is No.1 insurer in the world in Volume & Sold around 3.75 Cr. Policies in2007-
2008.

• 2nd Biggest Real Estate Owner next to Indian Railways.

• LIC is one of the Highest income tax playing Organization. For Financial Year
2007-08, LIC has paid advance Tax Rs.2627. 14 Cr. & Service Tax Rs.1292.15 Cr.

• Has Highest insurance Professionals ( Club Member agents )

• Only 4 countries in the world have more population that LIC`s policy holders.

• No.1 insurance Company in the world in terms of claims paid.

25
 • LIC Settles 2.21 claims per second, LIC settled 139 lakhs claims during the year
2007- 2008.

• Prompt settlement of claims (97% maturity claim settled on or before due date)

• One of the Lowest outstanding Claim Ratio in the world ( Maturity + S B Claim-
0.07%)

Advanced Technology-For better Customer Service -

• Computerized and networked 2048 branch offices and 159 satellite offices
throughout the country.

• Use of High Tech-WAN, LAN, IVRS & EDMS

• LIC is second largest PC user in the country. 29

• EDMS to make LIC a paperless office - Enabling Policy servicing and payments
through all branches in the country

• Premium Payment Facility extended through networked 2048 branches, ECS, ATM's
through internet, online portals, collecting bank (Axis Bank), AP online, through SMS,
through selected agents, Now LIC Premium can also be paid through.

• "Suvidha info Serve KIOSKS" all over India.

• Policy Holder's Portal allow on line access to policy status and other details.

• Info centre set up in 12 cities for customers to interact easily. Dial-1251 for details.

• 45 interactive Voice Response System (IVRS) centers all over the country to provide
information on policy servicing. Facility is available 24 7, Facility can be availed on
following phone Nos. 1251 OR 020-25514248.

26
 • Social Strength -

• LIC - an institution builder promoting many financial and insurance institutes like NSE,
NCDEX, LIC Mutual Fund, Stock Holding Corporation of India, National insurance
Academy, insurance institute of India etc.

• LIC has foreign operations in Mauritius, Fiji and London and has joint venture
operating in Sri-lanka, Nepal, Bahrain & Saudi Arabia. New offices will be shortly
opened in Australia, USA & Canada.

• LIC is known as "Pension Provider" of the country. 1st Pension company in India is
floated by LIC as "LIC Pension Fund Ltd" on 21st Nov 2007.

• First to create waves in micro insurance sector by insuring people below the poverty
line. In year 2007-2008, 8.54 lac policies sold through "Jeevan Madhur" Plan.

• Widest range of plans (about 48) for every need of the customer of 0 to 79 years of
age.

• Biggest Portfolio of Group insurance schemes available.

• "Jeevan Saral" one of the product of LIC got "Best innovation product " award
fromI.R.D.A.

• LIC has covered lick Risk of 1.13 crore citizens through "AAM ADMI BIMAYOJANA" &
"JANASHREE BIMA YOJANA".p

• Very Unique Salary saving Portfolio.

• Highest Number of Corporate Clients in Group insurance Scheme.

27
 People's Money for People's Welfare-

• LIC invested more than 11,630 crores, in infrastructure sector is Rs.56,691crores

• In socially oriented sector like water, drainage & housing etc, LIC has investedRs.5,635
crores during 2007-08 & total investment in this sector is Rs.32,321 crores Total
investment in Social Sector Rs.89,000 Crs.

• Different incentive schemes for villages, Schools and Banks under Bima Gram, Bima
School and Bima Banks.

• Total investment in Nation Building Activities is 5,76,000 Crs.

Weakness:

• Its employees and other staff are lethargic and least motivated to render prompt and

sincere customer service.

• After sales customer grievance redressal mechanism is inefficient.

• Agents not taking into account the needs of people and promote policies having high
commissions only.

• Very slow decision making process and internal problems between top management
and lower cadre staff.

• The top management or bosses are mediocre and there is large scale corruption in main
office.

• The development officers and agents who are the foundation pillars of LIC are not
provided with extra funds and powers to promote its products aggressively.

28
 Opportunity:

• Emergence of a huge middle income consumer market in the country.

• People becoming more aware and demanding so there is scope for a whole lot of
innovative products.

• Pension markets, health insurance and large real estate portfolio. Today’s human life
becomes full uncertain, so they prefer protection against the risk. Therefore they prefer life
insurance. This is the opportunity for the life insurance sector.

• Easy accesses to development in the more advance market provide further opportunity to
upgrade their working. Technological, financial or specific area based avenues of absorbing
improved system are also now more easily available. So, that insurance companies working
efficiently and fast service.

• Increased economic activities: increase in the economic activity has become the
opportunity for the life insurance sector. The activity such as development in the automobile
industry, development in the shipping industry. The growth in the GDP shows the
opportunity for this industry. The growth rate expected this year 7-7.5%. So this is also one
of the opportunities for the life insurance sector.

• Uncovered market: The Indian insurance market is the one of the least markets in the
world. India has a population 1044.15 million out of which only 77.7 million have a life
insurance policy. Almost 300 million people in the country can afford to buy life insurance
but of this only 20 % have an insurance cover. Thus there lies a big opportunity for the life
insurance industry. No doubt lots of marketing and promotional efforts have to be done for
trapping the uncovered portion of the huge market. India’s insurance has long way to catch
up with the rest of the world. According to the institute of charted financial analyst of India.
India is the 23rd largest insurance market in the world India accounts for just 0.4% of the
global insurance market which is very low. theratio’s of premium to GDP for India stands at
only 3% against 5.2% in US , 6.5% in UK.

29
 • To enter into rural market where customer awareness about insurance is low by effective
and efficient marketing strategies.

• To sell insurance products through electronic Medias.

• Natural calamities: natural calamities taking place now days have created a concern for
life insurance among the public. Because of natural calamities like earthquake, flood, and
32 cyclone people have become conscious about benefits and need of insurance. Thus
through a calamity it has become a considerably big opportunity for the industry.

• Growing population: the growth in the population (approximately 1.7%) is very high. It is
said that one Australia is added in our country every year. Thus potential customers for the
life insurance industry. It has become an opportunity for the life insurance industry.

• The lack of comprehensive social security system combined with a willingness to save
means that Indian people demand for pension products will be large. Thus, it has become
an opportunity for the life insurance industry.

• India has traditionally been a highly savings oriented country. Needless to say, if the
insurance market is properly tapped, it is possible to raise life insurance premium as a
percentage of GDP from its existing level. Thus, it has become an opportunity for the life
insurance industry.

• To use Internet and e-commerce technologies to dramatically cut the costs and/or to
pursue new sales-growth opportunities. With the help of technology it has become easy for
the companies to reach the customer quickly, easily, efficiently and in a better way. Also the
companies can cut down the cost of operation up to considerable level. Thus technology
has thrown lots of opportunity for the company.

• Liberalized government policy toward insurance sector: the government has liberalized
the government policy in the life insurance sector. Now a day role of government has
changed. Due to liberalized policy of government the country is benefited in earning foreign
inflows: the domestic company can also collaborate with foreign country and can create
synergy. Thus there is great opportunity for those who can trap it. Exist the option of joint

30
 venture& alliance etc. for companies to create Synergy, value as well as competitive
capabilities for the firms.

Threats:
• Private entrants are naturally targeting the profitable and more lucrative segments, by
providing better service, new products and flexibility. They are targeting the bigger
corporate the other clients in the well established metropolitan center. These new entrants
succeeded in eating share of the existing entities. This creates threat among rival firms itself.

• Interest rate of P.F and bank saving create threat to insurance sector. All other saving is
obviously the threat for life insurance sector.

• Increasing intensity of competition among industry rivals-may cause squeeze(fall) on

profit margins. Consumer’s education- consumers are more and more confused because
the market players are offering large number of product range. As at present the awareness
level is not much, it is only because the education level is only 62 % ( in which only 10% are
well educated).

• Fraud in insurance sector: the major problem fraud, which affects the life insurance sector.

• The flight of talent to new entrants is already in evidence, and could be on the rise for
some time to come. Retaining qualified and competent executives will be considerable
challenges for existing companies.

• One very serious danger that the government on units is likely to face is that even if at
some point of time, the government does decide to disinvest a portion of its equity; they
may not be fully free from government interference. They could face a peculiar problem
that although paper and in terms of legal definition they would not be public sector units.
In effects, their working could be no different from what it was before their ownership
pattern change. This could be genuine threats since they would be competing with units
which are free from such artificial and unnecessary restrictions.

31
 • The new units, equipped with state of arts equipment and innovative procedure would
have an in-built edge over the erstwhile public sector units, which until recently had no such
opportunity and incentives. Due to possible negative impact on employment, there were
no serious efforts at updating technology and equipment. The resultant inadequate
investment in infrastructure could lead to their lagging behind in the race.

32
 DATA ANALYSIS & INTERPRETATION
1) Age Group -

Total Below 30 years 31-40 years 41-50 years 51-60 years Above 60 years

200 100 64 32 4 0

Percentage 50 32 16 2 0

33
 Interpretation
According to the graph given above out of 200 respondents 50 % are below 30 years of
age, 32% are between age group of 31-40 years, 16% are between the age group of 41-
50 years, 2 % are between the age group of 51-60 years and none above 60 years, which
describes that LIC policies have got maximum faith among the youths

2) Gender -

Total Male Female

200 136 64

Percentage 68 32

Interpretation

According to the graphs given above out of the total 200 respondents included in the
study 68 % were males and 32 % were females, which clearly defines the gender biasness,
that the males have more liking towards the LIC policies.

34
 3)Marital Status -

Total Married Unmarried

200 154 46

Percentage 77 23

Interpretation

According to the graphs given above out of the total 200 respondents included in the

study 77% were married and 23 % were married, hence we can say married persons are

more interested in the investment criteria’s offered by LIC

35
 4)Total number of policies
bought

Total One Two More than two

200 74 102 24

Percentage 37 51 12

Interpretation

According to the graphs given above out of the total 200 respondents included in the

study, 37% were having one policy of LIC, 51% had two policies and 12 % more than two,

which clearly defines the faith of the people towards LIC policies.

36
 5)Mode of Payment

Total Monthly Quarterly Half-yearly Yearly

200 22 22 54 102

Percentage 11 11 27 51

Interpretation

According to the graphs given above out of the total 200 respondents included in the

study, 11% have opted for monthly payments, 11% opted for quarterly payment, 27%

opted for half-yearly payment and 51% opted for yearly payments of the premium.

37
 6)Educational Qualification

Total Undergraduate Graduate Post-Graduate Doctorate

200 32 46 94 28

Percentage 16 23 47 14

Interpretation

According to the graphs given above out of the total 200 respondents included in the

study 16% were undergraduate, 23% were graduate, 47% were post graduate and 14 %

were doctorate, which clearly indicates the liking of the educated sectors towards LIC

policies.

38
 7)Occupation

Total Student Service Self Employed Others

200 20 90 48 42

Percentage 10 45 24 21

Interpretation

According to the graphs given above out of the total 200 respondents included in the

study, 10 % were students, 45% were from service class, 24% were Self employed and

21 % were from other category, which clearly indicates the liking of the service class

people in LIC policies and services.

39
 8)Annual Income

Total Below 1 Lac 1 Lac – 5 Lac 5 Lac – 10 Lac Above 10 lac

200 66 120 8 6

Percentage 33 60 4 3

Interpretation

According to the graphs given above out of the total 200 respondents included in the
study, 33% were having income below 1 lac, 60% were having income between 1-5 lac, 4%
had income range of 5-10 Lac and 3% were having income above 10 lac, which clearly
defines the hold of LIC among the largest segment i.e. average middle class

40
 09)What Percentage of Monthly Salary do you save

Total Upto 10 % 11 – 20 % 21 – 30 % Above 30 %

200 60 90 34 16

Percentage 30 45 17 8

Interpretation

According to the graphs given above out of the total 200 respondents included in the

study, 30 % of subjects save 10% of their monthly salary, 45% save 11-20% of monthly

salary, 17% saves 21-30% of their monthly salary and 8% saves more than 30% of their

monthly salary.

41
 10)What Kind of Investment do you prefer?

Total Short Term Long Term Both

200 68 102 30

Percentage 34 51 15

Interpretation
According to the graphs given above out of the total 200 respondents included in the

study, 34% liked short term investment, 51% liked long term investment and 15% liked

both types, which gives an opportunity for LIC to give due emphasis on short-term

investment policies

42
 11)Are you satisfied with the services of LIC of India?

Total Yes No

200 164 36

Percentage 82 18

Interpretation

According to the graphs given above out of the total 200 respondents included in the

study, 82 % were satisfied by the LIC policies and services rest 18 % were not satisfied.

43
 12)Give reasons for insuring with LIC

Total Brand Grievances Handling Undue Delay in Claims Public Sector

200 84 46 40 30

Percentage 42 23 20 15

Interpretation

According to the graphs given above out of the total 200 respondents included in the

study, 42 % have invested on the brand name, 23 % on it’s ways to handle grievances,

20 % on the basis of timely claim settlements and rest 15% as LIC is government owned

sector so the customers are secure.

44
 13)What scheme of insurance policy have you taken?

Other
Total Whole Life Endowment Plus Money Back Pension Fund s

200 34 56 68 32 10

Percentag
e 17 28 34 16 5

Interpretation

According to the graphs given above out of the total 200 respondents included in the

study, 17% have invested in Whole life, 28% in endowment plus 34% in Money back, 16%

in Pension fund and rest 5% in other policies. Its an alarming signal for LIC to concentrate

on policies and make more lucrative for customers, which comes under other categories.

45
 14)Most Likely Periodicity of Policy

Total 5 years 5-15 years 15-25 years 25 years

200 14 84 76 26

Percentage 7 42 38 13

Interpretation

According to the graphs given above out of the total 200

respondents included in the study, 7% like policy of 5 years, 42%
liked policies ranging from 5-15 years, 38% liked in the range of 15-
25 years and rest 13% liked policies of 25 years

46
 MARKETING STRATEGY OF LIC: -
Marketing Mix of LIC analyses the brand/company which covers 4Ps (Product, Price,
Place, Promotion) and explains the LIC marketing strategy. There are several
marketing strategies like product/service innovation, marketing investment,
customer experience etc. which have helped the brand grow.

Marketing strategy helps companies achieve business goals & objectives, and
marketing mix (4Ps) is the widely used framework to define the strategies. This article
elaborates the product, pricing, advertising & distribution strategies used by LIC.

Let us start the LIC Marketing Mix & Strategy:

 LIC Product Strategy:

The product strategy and mix in LIC marketing strategy can be explained as follows:

LIC or Life Insurance Corporation of India, is the biggest insurance company in India.
LIC offers a range of financial and investment products in its marketing mix like
insurance, special, unit, pension, Micro investment, withdrawn and health plans. LIC
also offers participation in the government scheme of Aam Admi Bima Yojana.
Insurance plans include different types of plans like Endowment plan (Jeevan
Utkarsh, Jeevan Rakshak), Whole life plan (Jeevan Umang), Money Back plans (New
Bima Bachat, Jeevan Tarun), Term assurance plan (Anmol Jeevan I & II) and Riders
like New Critical Illness Benefit Rider. The special plans are combinations of
insurance, investment and the security because of it. Pension plans are more suited
for senior citizens for secure future. Through pension plan, LIC also gives access to
government plan of Pradhan Mantri Vaya Vandana Yojana. Unit plans are the
schemes for people with inconsistent income and has benefits of rich returns and tax
savings. It also offers group schemes for employers, families, societies or
associations. Life Insurance Corporation has different subsidiaries for specialized

47
 services. These are; LIC Housing Finance, LIC Pension Fund Ltd, LIC International, LIC
Cards Services and LIC Mutual Fund.

 LIC Price/Pricing Strategy:

Below is the pricing strategy in LIC marketing strategy:

The main objective of LIC is to offer adequate financial cover to all insurable persons
at reasonable and affordable cost.

In 2017, LIC's market share for number of policies was 76.09% and sold 20 million
new policies. The product range of LIC is varied and so is the price range. The
website is equipped with a 'Premium Calculator ' service wherein the premium for
each scheme of Life Insurance Corporation can be calculated. It depends on variables
like age, term and sum assured. The payment of the premium can be paid by cash,
cheque or DD at cash counter of any LIC branch. Apart from this for ease of
customers, premium can also be paid through Alternate channels as described on
website. Keeping up with the implementation of GST by Government of India, LIC has
replaced the service tax from earlier transaction with GST. The Tax rate will be
different for different schemes. It will also be charged on interest of delayed
payments.

 LIC Place & Distribution Strategy:

Following is the distribution strategy of LIC:

LIC of India operates on the principle of providing life insurance on wider scale and
urban and rural areas so all the insurable individuals have access to it. When Life
Insurance Corporation was established, it had 5 zonal offices, 33 divisional offices
and 212 branch offices governed by corporate office. To maintain long term
accessibility for the consumers and build up the trust with them, LIC expanded their
operations and opened the branches in each district. Due to this lot of organizational
changes were initiated and branches got more functionality and acted as accounting

48
 units. Presently, LIC headquarter is located in financial capital of India, Mumbai with
2048 computerized branch offices, 113 divisional offices 8 zonal offices, 1381 satellite
offices. In tier 1 and 2 cities like Mumbai, Bangalore, Ahmedabad, Chennai, New
Delhi, Pune on line kiosks and IVRS info centres have been specially made. The new
initiative called 'Satellite Sam Park' offices have been opened for easy access to
policy holders. Thus, LIC has thoroughly penetrated the Indian market with reach in
all the segments. Outside India, LIC operated in 13 countries through joint ventures
or subsidiaries.

These countries include Bahrain, Qatar, Nepal, Singapore etc.

 LIC Promotion & Advertising Strategy :

The promotional and advertising strategy in the LIC marketing strategy is as follows:

The product of LIC is intangible in nature involving customer involvement and loyalty
in highly competitive market. Life Insurance Corporation has strong market share.
With the emergence of new insurance organizations, LIC has to maintain its
dominant position. LIC has used print and broadcast media exclusively. LIC
advertisements feature in many national as well as local newspapers and magazines.
It shows returns on the product and tax benefits from it. The television commercials
for LIC appeal to emotions of consumer by depicting importance of life insurance for
the family when the earner of the family is no more. It ends with the tagline of
'Zindagi Ke Sath Bhi, Zindagi Ke Baad Bhi' (With you during and after your life). LIC
also involved in co-promotion at various exhibitions, seminars for other products like
real estate, medical services. The communication with customer is maintained
through multiple channels like IVRS, Call centres, Customer zone, SMS, e-mail,
website and social networking sites.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps
marketing mix of LIC (Life Insurance Corporation of India).

49
 People:
LIC believes in insurance for all, i.e., all the insurable persons from rural and
economically backward class should receive financial security of insurance. It has the
objective of involving all their employees to their fullest capacity to serve the
customers better. They also believe in integrating the corporate objective of
organization with personal objective of employees leading to job satisfaction and
pride. Life Insurance Corporation has a separate portal for its customers to submit their
grievances. The grievance officers at respective Grievance Redressed Office, attend the
customer without prior appointment. LIC insurances can be availed through the
authorized LIC agents. The agents undergo exclusive training by LIC and have access
to the infrastructure access in the branch offices and sales-marketing support.
Domestic as well as NRI customers have information portal on the website providing
guidance on services like premium calculation, bonus information, policy status etc.

Process:
LIC is a pioneer in the insurance industry. It is highly respected and trusted
organization. The website of Life Insurance Corporation is very informative and starts
the customer education right from the need for insurance, enlists its benefits and
describes detailed information regarding all aspects of insurance and other related
financial services. It also gives detailed information about all the products and allows
calculation of cost and benefits of each. The form for the policy can be procured from
the website or the agent or the nearest branch of LIC. Application for policy requires
the documents from the applicant. There are multiple ways for payment of the
premium making the process easy for consumer. The claim for the policy can also be
made by submission of formal request through form and producing necessary
documentation. Thus, over the years LIC has improved and adjusted its operations as
per the changing times, keeping them customer centric.

50
 Physical Evidence:
The offices of Life Insurance Corporation are in every district. The contracts for
infrastructure developments of the offices are invited through the Tender Notices.
These notices are circulated in the newspapers and website and bids are invited. The
infrastructure is congenial to the requirements of customer having spacious building
with proper layout, adequate seating and waiting arrangements, pleasing ambiance,
clear sign boards for assistance, availability of the informative material and literature,
telephone and basic restroom and drinking water facilities. The physical proofs of all
the necessary documents are required for the application and availing of the policy.
After the policy is acquired, it can be procured in the physical form and for some of
the official purposes, it is considered as a proof of address and date of birth.
LIC logo consists of joined hands holding a lamp.

Hence this completes the marketing mix of Life Insurance Corporation (LIC).

51
 WHY TO OPT FOR LIC LIFE INSURANCE
PLANS:-
LIC is said to be the largest life insurance company in the world with 23 crore customers
and counting. It offers some of the most reasonably rated premiums and adequate
coverage options, regardless of which walk of life an individual belongs to. The brand
name is not the sole reason one should opt for LIC since it is not ideal to rely on life
insurance products from a single brand. Here is why one should opt for LIC as a life
insurance provider:

•Technologically superior Network: LIC has been the leader as

an insurance provider for its efforts to stay ahead of the game by being at par if
not better in terms of its network when it comes to providing advanced and
efficient services with over 2000 branch offices and 156 satellite branches. The
company uses technology such as WAN, IVRS, LAN, IVRS & even EDMS that
allow people to go paperless when dealing with insurance documentation.

•Not Alone in the Game: The company does not work alone but
partners with insurance and financial tycoons including NSE, LIC Mutual Fund,
NCDEX, Stock Holding Corporation of India, Insurance institute of India and
National insurance Academy among many similar organizations. Hence, it is
working through convergence as well.

•Going International: It has fully functional offices in countries such

as Nepal, Sri Lanka, Saudi Arabia and Bahrain. LIC has also been ambitious
enough to plan opening offices in Australia, Canada and USA.

•Product Variety: You will soon discover from the below given list that
this company boasts of one of the highest numbers of policy types available
in life insurance alone. It has the largest portfolios when it comes to life
insurance group schemes to be one of their highlights. They have a huge
clientele of corporates for group insurance.

52
 •Innovation in the Industry: The company launches new

products every other quarter and they are mostly to serve the society than to

make profits although they are doing pretty well as an insurance company,

financially. They were the first to launch micro-insurance products so that

people living below the poverty line in India could afford insurance for a

certain amount of discount.

•Performance in The Stock Market: When it comes to stock

market positioning, LIC stocks are one of the most stable stocks available in the BSE.
Some of the most well-performing stock lists almost always feature this company
especially when it comes to insurance providers.

53
 AWARDS AND ACHIEVEMENTS: -

LIC which was founded in 1956 was awarded as the Life Insurance
Company of the Year in

2014.Some of awards won by LIC are:

Pitch Top 50 Brands 2014

• Indian Insurance Awards 2014 - Claims Leader

• Indian Insurance awards 2014 - Life Insurance Company of the
year
• Lok mat BFSI Awards 2014 - Highest Claim Settlement
• Lok mat BFSI Awards 2014 - Best Life Insurance Company
• Global Brand Excellence Awards Brand Excellence in BFSI
• Global Brand Excellence Awards - Best Use of social media in
Marketing
• Asia BFSI Best CSR Practices
• Asia BFSI Best Life Insurance Company
• Hindustan Times Mumbai Hot 50
• Readers Digest 2014 Trusted Brand
• ET Best Brands
• 2nd Bright Awards
• Super Brands 2014
• ABP News Brand Excellence Awards
• Indira Gandhi Award from President of India
• West Bengal State Award 2014
• BFSI Vision CSR Award - Community Development
• BFSI Vision CSR Award - HealthCare and Combating Diseases

54
 • IPSE Awards 2014 - Insurance PSE of the year
• NASEOH - Sri Vijay Merchant Memorial Award
• Greentech CSR Award
• Money Today FPCIL.
• The Economic Times Brand Equity Survey 2012 rated LIC as the
No. 6 Most Trusted
Service Brand of India.
• From the year 2006, LIC has been continuously winning the
Readers' Digest Trusted brand award.

55
 CONCLUSION :-

The purpose of the study was how LIC works and how it retains the market. In
FY21 LIC has the one of the leading organisations who offers best insurance
plans. LIC collects highest ever premium of Rs. 1.84 trillion in FY21. LIC
continued its performance in new business, despites a highly challenging
business environment due to the covid- 19. LIC is offering several plans which
it says will provide insurance, protection, wealth creation in the long term,
secure financial future after retirement, health insurance. Apart from these, one
will get tax benefits under income tax act.

LIC employees are expected to benefit from wage revision with over 25 per cent
hike in their packets 5 days’ work week. They always try to hold their customers
by offering them with great new policy every quarters.

The customers have keen faith in LIC. And during pandemic of second wave on
the month of may it benefited to lots of customers financially and give relief for
them and to their family.

Due to the great performance, it contributed 11% in the GDP growth during pandemic.
Which make me curious how it survives in pandemic and make such growth in this
year that’s why I choose LIC as a topic of internship report.

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 REFRENCE: -
https://www.licindia.in/getattachment/Bottom-Links/annual-report/LIC-
Annual-Report-2015-
16.pdf.aspx

http://articles.economictimes.indiatimes.com/2012-01-
23/news/30655455_1_brand-trustreport-trust-research-advisory-n-
chandramouli

http://economictimes.indiatimes.com/features/brand-equity/most-trusted-
brands-2012-top-50service-brands/articleshow/17101285.cms

https://economictimes.indiatimes.com/markets/ipos/fpos/government-
proposes-to-hike-licauthorised-capital-to-rs-25000-
crore/articleshow/81375724.cms

Times of India
Economic times
Zee business
Wikipedia

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