Role of LIC in Insurance Sector

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TABLE OF CONTENTS

Executive Summary

Chapter 1: Introduction To Insurance

1.1: Introduction 1.2: Definitions Of Insurance 1.3: History Of Insurance In India 1.4: Characteristics Of Insurance: 1.5: Function Of Insurance:

Chapter 2: Role Of Insurance Sector In India

Chapter 3: Introduction Of Life Insurance Corporation Of India

3.1: INTRODUCTION TO L IC 3.2: MILESTONES 3.3: TYPES OF LIFE INSURANCE : 3.4: OBJECTIVES OF LIC

Chapter 4: Role Of Life Insurance Corporation

4.1: ROLE OF LIC 4.2: CURRENT STANDING OF LIFE INSURANCE COMPANIES IN Urban SECTOR . 4.3: NETWORK  OF LIC 4.4: CURRENT STATUS NOWN INDIAN B RAND: CHIDAMBARAM 4.5: LIC THE BEST -K NOWN

4.6: WHY  LIC IS TRUSTED BRAND OF INDIA?

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Chapter 5: Role Of Lic In International Market 

5.1: ROLE OF LIC IN INTERNATIONAL MARKET 5.2: INTERNATIONAL OPERATIONS/A SSOCIATES

Chapter 6: Research Analysis

Chapter 7: Findings, Recommendations & Conclusion 7.1: Findings 7.2: Recommendations 7.3: Conclusion

Bibliography

Questionnaire Format 

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Chapter 5: Role Of Lic In International Market 

5.1: ROLE OF LIC IN INTERNATIONAL MARKET 5.2: INTERNATIONAL OPERATIONS/A SSOCIATES

Chapter 6: Research Analysis

Chapter 7: Findings, Recommendations & Conclusion 7.1: Findings 7.2: Recommendations 7.3: Conclusion

Bibliography

Questionnaire Format 

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EXECUTIVE SUMMARY  Someone has greatly said that practical knowledge is far better than classroom teaching. During this project I fully realized this and come to know about the present  real world of Insurance sector . It It includes all the activities involved in providing insurance products to the final customers. I am pleased to know about the consumers’ wants and competitors activities in the real world of Insurance. The subject of my study s tudy is to analyse the present insurance sector and products offered by LIC by applying various tools like cold calling and through direct interaction with customer’s. I have also done research on the growth of private life insurance companies. The report contains first of all brief introduction about the company. Then it contains the current status of private insurance companies and foreign insurance i nsurance companies in India. I also put forward recommendations of the consumers and conclusions co nclusions that will help LIC to provide consumer satisfactory services in the insurance sector

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CHAPTER 1

INTRODUCTION TO INSURANCE

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1.1 INTRODUCTION TO INSURANCE Insurance may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associ ate themselves by sharing risk, attached to individual. The risk, which can be insured against include fire, the peril of sea, death, incident, & burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involved.

“Insurance is a contract between 2 parties whereby one party called insurer undertakes in exchange for a fixed sum called premium to pay the other party

happening of a certain event.”

The insurance industry in India has come a long way since the time when businesses were tightly regulated and concentrated in the hands of a few public sector insurers. Following the passage of the Insurance Regulatory and Development Authority Act in 1999, India abandoned public sector exclusivity in the insurance industry in favor of  market-driven competition. This shift has brought about major changes to the industry. The inauguration of a new era of insurance development has seen the entry of  international insurers, the proliferation of innovative products and distribution channels, and the raising of supervisory standards. By mid-2004, the number of insurers in India had been augmented by the entry of new private sector players to a total of 28, up from five before liberalization. A range of new products had been launched to cater to different segments of the market, while traditional agents were supplemented by other channels including the Internet and bank branches. These developments were instrumental in propelling business growth, in real terms, of 19% in life premiums and 11.1% in non-life premiums between 1999 and 2003.

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There are good reasons to expect that the growth momentum can be sustained. In particular, there is huge untapped potential in various segments of the market. While the nation is heavily exposed to natural catastrophes, insurance to mitigate the negative financial consequences of these adverse events is underdeveloped. The same is true for both pension and health insurance, where insurers can play a critical role in bridging demand and supply gaps. Major changes in both national economic policies and insurance regulations will highlight the prospects of these segments going forward. Insurance or assurance, device for indemnifying or guaranteeing an individual against  loss. Reimbursement is made from a fund to which many individuals exposed to the same risk have contributed certain specified amounts, called premiums. Payment for an individual loss, divided among many, does not fall heavily upon the actual loser. The essence of the contract of insurance, called a policy, is mutuality. The major operations of an insurance company are underwriting, the determination of which risks the insurer can take on; and rate making, the decisions regarding necessary prices for such risks. The underwriter is responsible for guarding against adverse selection, wherein there is excessive coverage of high risk candidates in proportion to the coverage of low risk  candidates. In preventing adverse selection, the underwriter must consider physical, psychological, and moral hazards in relation to applicants. Physical hazards include those dangers which surround the individual or property, jeopardizing the well-being of the insured. The amount of the premium is determined by the operation of the law of averages as calculated by actuaries. By investing premium payments in a wide range of revenueproducing projects, insurance companies have become major suppliers of capital, and they rank among the nation's largest institutional investors.

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1.2 DEFINITIONS OF INSURANCE Insurance is a contract whereby, in return for the t he payment of premium by the insured, the insurers pay the financial losses suffered by the insured as a result of the occurrence of unforeseen events. With the help of insurance, large number of people exposed to a similar risk makes contributions to a common fund out of which the losses suffered by the unfortunate few, due to accidental events, are made good.

General definition: In the words of John Magee, “Insurance is a plan by which large number of 

people associate themselves and transfer to the shoulders of all, risks that attach to individuals.”

Fundamental definition: In the words of D.S. Hansel, “Insurance may be defined as a social device

providing financial compensation for the effects of misfortune, the payment being made from the accumulated contributions of all parties participating in the scheme.”

Contractual definition: In the words of justice Tindall, “Insurance is a contract in which a sum of money is paid to the assured as consideration of insurer’s incurring incurring the risk of paying a large sum upon a given contingency.”

General Definition: The general definitions are given by the social scientists & they consider co nsider insurance as a device to protection against risks, or a provision against inevitable contingencies or a co-operative device of spreading risks. Some of such definitions are given below:

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In the words of John Magee, ―Insurance is a plan by which large number of 

people associate themselves & transfer to the shoulder of all, risks that attach to individuals. 

In the words of Sir William, ―The collective bearing of risks is insurance.

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In the words of Boone & Kurtz, ―Insurance is a substitution for a small known

loss (the insurance premium) for a large unknown loss, which may or may not  occur. 

In the words of Thomas, ―Insurance is a provision, which a prudent man makes

against for the loss or inevitable contingencies, loss or misfortune. 

In the words of Allen Z. Mayer, ―Insurance is a device for the transfer to an insurer of certain risks of economic loss that would otherwise come by the insured.

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In the words of Ghosh & Agarwal, ―Insurance is a co -operative form of 

distributing a certain risk over a group of persons who are exposed to it.‖

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1.3 HISTORY OF INSURANCE IN INDIA In India, insurance has a deep-rooted history. It finds mention in the writings of  Manu (Manusmrithi), Yagnavalkya (Dharmasastra) and Kautilya (Arthasastra). The writings talk in terms of pooling of resources that could be re-distributed in times of  calamities such as fire, floods, epidemics and famine. This was probably a pre-cursor to modern day insurance. Ancient Indian history has preserved the earliest traces of  insurance in the form of marine trade loans and carriers’ contracts. Insurance in India

has evolved over time heavily drawing from other countries, co untries, England in particular. 1818 saw the advent of life insurance business in India with the establishment of the Oriental Life Insurance Company in Calcutta. This Company however failed in 1834. In 1829, the Madras Equitable had begun transacting life insurance business in the Madras Presidency. 1870 saw the enactment of the British Insurance Act and in the last three decades of the nineteenth century, the Bombay Mutual (1871), Oriental (1874) and Empire of India (1897) were started in the Bombay Residency. This era, however, was dominated by foreign insurance offices which did good goo d business in India, namely Albert  Life Assurance, Royal Insurance, Liverpool and London Globe Insurance and the Indian offices were up for hard competition from the foreign companies.

In 1914, the Government of India started publishing returns of Insurance Companies in India. The Indian Life Assurance Companies Act, 1912 was the first  statutory measure to regulate life business. In 1928, the Indian Insurance Companies Act was enacted to enable the Government to collect co llect statistical information about both life and non-life business transacted in India by Indian and foreign insurers including provident insurance societies. In 1938, with a view to protecting the interest of the Insurance public, the earlier legislation was consolidated and amended by the Insurance Act, 1938 with comprehensive provisions for effective control over the activities of  insurers. The Insurance Amendment Act of 1950 abolished Principal Agencies. However, there were a large number of insurance companies and the level of competition was high.

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There were also allegations of unfair trade practices. The Government of India, therefore, decided to nationalize insurance business.

An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year. The LIC absorbed 154 Indian, 16 non-Indian insurers as also 75 provident societies —245 Indian and foreign insurers in all. The LIC had monopoly till the late 90s when the Insurance sector was reopened to the private sector.

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1.4 CHARACTERISTICS OF INSURANCE:

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Sharing of Risks Insurance is a co-operative device to share the burden of risk, which may fall on

happening of some unforeseen events, such as the death of head of the family, or on happening of marine perils or loss of by fire.

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Co-operative Device Insurance is a co-operative form of distributing a certain risk over a group of 

persons who are exposed to it (Ghosh & Agarwal). A large number of persons share the losses arising from a particular risk.

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Evaluation of Risk  For the purpose of ascertaining the insurance premium, the volume of risk is

evaluated, which forms the basis of insurance contract.

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Payment of happening of specified event  On happening of specified event, the insurance company is bound to make

payment to the insured. Happening of the specified event is certain in life insurance, but  in the case of fire, marine or accidental insurance, it is not necessary. In such cases, the insurer is not liable for payment of indemnity.

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 Amount of payment  The amount of payment in indemnity insurance depends on the nature of losses

occurred, subject to a maximum of the sum insured. In life insurance, however, a fixed amount is paid on the happening of some uncertain event or on the maturity of the policy.

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Large number of insured persons The success of insurance business depends on the large number of persons insured against similar risk. This will enable the insurer to spread the losses of risk  among large number of persons, thus keeping the premium rate at the minimum.

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Insurance is not a gambling Insurance is not a gambling. Gambling is illegal, which gives gain to one party

& loss to the other. Insurance is a valid contract to indemnity against losses. Moreover, insurable interest is present in insurance contracts & it has the element of investment  also.

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Insurance is not charity Charity pays without consideration but in the case of insurance, premium is

paid by the insured to the insurer in consideration of future payment.

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Protection against risks Insurance provides protection against risks involved in life, materials &

property. It is a device to avoid or reduce risks

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Spreading of risk  Insurance is a plan, which spread the risks & losses of few people among a

large number of people. John M agee writes, ―Insurance is a plan by which large number of people associates themselves & transfer to the shoulders of all, risks attached to individuals.

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Transfer of risk  Insurance is a plan in which the insured transfers his risk on the insurer. This

may be the reason that Mayerson observes, that insurance is a device to transfer some economic losses to the insurer, and otherwise such losses would have been borne by the insured themselves.

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 Ascertaining of losses By taking a life insurance policy, one can ascertain his future losses in terms of 

money. This is done by the insurer to determining the rate of premium, which is calculated on the basis of maximum risks.

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 A contract  Insurance is a legal contract between the insurer & insured under which the

insurer promises to compensate the insured financially within the scope of insurance policy, & the insured promises to pay a fixed rate of premium to the insurer.

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Based upon certain principle Insurance is a contract based upon certain fundamental principles of insurance,

which includes utmost good faith, insurable interest, contribution, indemnity, cause proximal, subrogation, etc., which are the basis for successful operation of insurance plan.

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Utmost Good Faith Insurance is a contract based on good faith between the parties. Therefore, both

the parties are bound to disclose the important facts affecting to the contract before each other. Utmost good faith is one of the important principles of insurance.

To conclude, insurance is a device for the transfer of risks from the insured to the insurers, who agree to it for a consideration (known as premium), & promises that the specified extent of loss suffered by the insured shall be compensated. It is a legal contract of a technical nature.

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1.5 FUNCTION OF INSURANCE: PRIMARY FUNCTIONS – The primary functions of insurance include the following. i)

Provide Protection

The primary function of insurance is to provide protection against future risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can certainly provide for the losses of risk. Professor Hopkins observes "Insurance is a protection against econo mic loss, by sharing the risk with others.”

ii)

Collective bearing of risk 

Insurance is a device to share the financial loss of few among many others. Dinsdale opines, insurance is a mean by which few losses are shared among longer people. Similarly, William Bevridge observes, "The collective bearing of risks is insurance." All the insured contribute the premiums towards a fund and out of which the persons exposed to a particular risk is paid.

iii)

 Assessment of risk 

Insurance determines the probable volume of risk by evaluating various factors that give rise to risk. Risk is the basis for determining the premium rate also.

iv)

Provide certainty

Insurance is a device which helps to change from uncertainty to uncertainty. This may the reason that John Magee writes that the function of insurance is to provide certainty. Similarly, Riegel and-Miller observe, "Insurance is device whereby the uncertain risks may be made more certain".

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SECONDARY FUNCTIONS i)

Prevention of losses

Insurance cautions individuals and businessmen to adopt suitable device to prevent unfortunate consequences of risk by observing safety instructions; installation of automatic sparkler or alarm systems, etc. Prevention of losses causes lesser payment  to the assured by the insurer and this will encourage for more savings by way of  premium. Reduced rate of premiums stimulate for more business and better protection to the insured. ii)

Small capital to cover larger risks

Dinsdale observes, insurance relieves the businessmen from security investments, by paying small amount of premium against larger risks and uncertainty. iii)

Contributes towards the development of larger industries

Insurance provides development opportunity to those larger industries having more risks in their setting up. Even the financial institutions may be prepared to give credit to sick industrial units which have insured their assets including plant and machinery.

OTHER FUNCTIONS 

Means of savings and investment: insurance serves as savings and investment, insurance is a compulsory way of savings and it restricts the unnecessary expenses by the insured’s For the purpose of availing income-tax exemptions

also, people invest in insurance. 

Source of earning foreign exchange: Insurance is an international business. The country can earn foreign exchange ^ by way of issue of marine insurance policies.

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Promotes exports insurance makes the foreign trade risk free with the help of  different types of policies under marine insurance cover.

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CHAPTER 2

ROLE OF INSURANCE SECTOR IN INDIA

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ROLE OF INSURANCE SECTOR IN INDIA

PROTECTIVE ROLE

Insurance has been playing protective role towards the development of industry and commercial institutions. The major protective measures have been:

i)

Protection from risks arising out of natural calamities

Insurance has also been playing important role in protecting the industry and commercial activities from natural calamities like fire, marine losses, floods, earth quakes, cyclones etc.

ii)

Protection from the risks caused by human beings

Insurance provides protection against risks caused by human beings such as strikes by workers, their negligence in carrying out work, theft and decoity, evil disturbances and many other such acts. In addition to the issue of policies against such causes, insurance also issues policies to protect the industry and commercial institutions from the loss of money in transit.

iii)

Protection against statutory liabilities

Insurance also plays the role of protecting the industry and commerce in fulfilling statutory liabilities towards the workers, arising out of industrial accidents. The employer is bound to compensate such workers under the provision of Workers' Compensation Act. In case the employer obtains an accidental policy in favour of  employees; the money to be paid as compensation to the accident victims, can be chimed from the insurance company.

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Financial security

Insurance provides financial security also to industry and commerce. Exports of goods to other countries by sea, storage of goods in safe godowns and various other kinds of financial losses are secured by insurance policies.

v)

Protection from loss of profits

Insurance also has extended its role of prot6cting different industrial and commercial activities, it provides protection against losses arising from shops or factories. It also undertakes to indemnity the loss of profits from business functions. This way, the loss of profits and property / both are protected.

vi)

Protection of debts

A trader can protect himself by taking appropriate policy against the credit sales or property kept on security against goods or property. Thus, the insurance protests the trader even in case the debtor dies or of damages to the goods.

vii)

Protection to the business institution due to sudden death of the me key man

The successful operation and development of a business largely depends on its directors, managers and administrative personnel. Sudden and untimely death of  such person may badly affect the functioning of the business and many problems may also arise in day-to-day functioning of business. Insurance plays important role by insuring the life of key man in the business so that the future can be protected safely from uncertainties.

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Provides stability in commercial and industrial activities

Insurance companies extend various kinds of assistance to business enterprise to run the business regularly and continuously. It plays important role in partnership business by insuring the life of partners so that in case of death of any partner, the claim received from the insurance company can be used for meeting payment to the dependents of  deceased partner.

PROMOTIONAL ROLE OF INSURANCE Insurance plays important role in setting up industrial and commercial units; by way of capital formation, new investment, industrial entrepreneurship, under-writing of shares and investment in capital market. In addition to protective measures, it plays promotional role also, which are briefly described below:

i)

Extension of credit facilities

Insurance extends credits to industrial and commercial institutions. An entrepreneur can get insurance of unit, plant and machinery, or permanent assets purchased by him and get them mortgaged with the financial institutions for getting credit.

ii)

Facilities industrialization and commercialization

Insurance contributes for the development of various commercial activities like buying-selling, transportation, communication, warehousing, packaging, advertising and publicity, and agricultural marketing etc. It is due to the insurance facility that many utility serves are created and the business solves various problems arising out of  business conducts.

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Increases business and industrial efficiency

The efficient management of industrial and commercial activities become possible due reductions in business risks. Insurance provides protection from various risks and thus it increases the business efficiency.

iv)

Investment in shares and debentures

Insurance companies extends its support for the development and expansion industrial and commercial activities by investing in shares and debentures issued by the industrial units.

v)

Contribution towards the development of basic industries

Insurance has contributed much towards the development and expansion of  basic industries like iron and steel cement, engineering, chemicals, petro-chemicals, electric goods, fertilizers, etc. by investing in shares and debentures.

vi)

Contribution towards fulfillment of social and statutory obligations

Insurance institutions in the country also have been contributing much in fulfilment of social and statutory obligations by contributing well in social welfare schemes operated by industrial establishments, social security, schemes, workers compensation plan, payment of gratuity etc.

vii)

Contribution towards development of international trade

The various policies issued by marine insurance companies help for the development of international trade by protecting the exporters/ importers from marine losses and risks. This role of insurance companies has been helpful in earning more foreign exchange by increased participation by traders in international trader

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Extension of export credit 

Export Credit and Guarantee Corporation (ECGC) extends export credit to the exporters and in cases where the importers commit defaults in making payment to the exporter, the ECGC compensate the exporter through its policy issued for this purpose.

ix)

Increase competing ability among small and medium-scale units

Insurance acts as a source among the small and medium scale industrial units to compete with larger industrial units. Large-scale industries can bear the expenses for protection against risks and uncertainties by getting insurance against such losses.

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CHAPTER 3 INTRODUCTION OF LIFE INSURANCE CORPORATION OF INDIA

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3.1 INTRODUCTION TO LIC

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

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The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in force as Rs. 22.44 crore, it rose to 176 companies with total business-in-force as Rs. 298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19 th 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 19 th of  June 1956, and the Life Insurance Corporation of India was created on 1 st  September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost. LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district  headquarter, re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organization servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organization happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.

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Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the corporate office. LIC’s Wide Area Network covers 100

divisional offices and connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-lint premium collection facility in selected cities. LIC’s ECS and ATM premium payment facility is an addition to

customer convenience. Apart from on-line Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. LIC continues to be the dominant life insurer even in the liberalized scenario of  Indian insurance and is moving fast on a new growth trajectory surpassing its own past  records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15 th 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.

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3.2 MILESTONES

Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil

started functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company

started its business. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate

the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect 

statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the

objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies are taken over by the

central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

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3.3 TYPES OF LIFE INSURANCE:

There are various types of policies and schemes prepared to suit the need of different  individual. You can avail the one that satisfy your budget and need. Life insurance can be broadly divided into 3 types: 

Term life insurance



Whole life insurance



Universal life insurance

What is Term Life Insurance? In this type of life insurance, financial coverage is provided for a certain period of time according to the terms of the policy. When the term period gets over, the policy holder can either end the policy or continue it by paying annual premiums. Term life insurance does not provide permanent coverage but is good for those who want temporary protection on a limited budget. If you are thinking of availing a short  term life insurance policy to pay off loans, term life insurance policy is the right option for you. It can be renewed according to the policy holders wish and need.

What is Whole Life Insurance? In this type of life insurance, the insured is provided with permanent financial protection. It is a long term insurance plan where the policy holder needs to pay premiums annually. There are various types of whole life insurance that individuals can avail in accordance to their needs such as Non-participating, Participating, Indeterminate premium, Economic, Limited Pay, Single Premium and Interest sensitive. But all life insurance companies may not offer all the types of whole insurance policies stated above.

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What is Universal Life Insurance? This is a permanent life insurance plan which has flexible terms. It allows some of the benefits such as death benefits, saving benefits to be reviewed and changed according to the policy holder�s need. In this policy, the insured enjoys not only benefits of term life insurance but also cash value (premiums that are above the cost insurance are credited as cash value). You can choose from the 3 types of universal life insurances, i.e. Single premium, fixed premium and flexible premium, in accordance to your requirement. Single premium universal life insurance: In single premium universal life insurance,

the policy holder pays a big premium amount at the beginning of the policy. The policy remains active as long as the cost of insurance (COI) is covered by the initially paid amount. Fixed premium universal life insurance: In fixed premium universal life insurance,

the policy holder makes monthly or yearly payments of fixed amount for a certain period of time. Flexible premium universal life insurance: In this option of universal life insurance,

the policy holder can pay monthly premiums of his choice as long as the minimum payment amount is covered. Life insurance is therefore an essential step towards safeguarding the future of your family. People should understand how these life insurance policies work and avail the one that seems suitable to their needs. Take the help of a good insurance agent who will help you with details of the policies available.

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3.4 OBJECTIVES OF LIC



Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against  death at a reasonable cost.



Maximize mobilization of people’ savings by making insurance -linked savings

adequately attractive. 

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



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



Act as trustees of the insured public in their individual and collective capacities.



Meet the various life insurance needs of the community that would arise in the changing social and economic environment.



Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy.



Promote amongst all agent and employees of the corporation a sense of  participation, pride and job towards achievement of corporate objective.

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4.1 ROLE OF LIC The insurance industry recorded a booming growth of 35% in premium income during2004-05 with the 13 private sector players walking away with. An impressive 129%while the Life Insurance Corporation of India recorded a 21% growth. Thus the market share of state behemoths dropped to 78% in 2004 05 from 87% a year ago. According to ASSOCHAM Eco Pulse (AEP) Study, the industry premium increased to Rs253.42bn in 2004-05 from Rs187.1bn in 2003-04. The LIC total premium for the year 2004-05 amounted to Rs197.85bn as against the Rs162.84bn during previousyear. The figures for the first two months of the fiscal 2005-06 also speak of the growing share of  the private insurers.

The share of LIC for this period has further come down to 75%, while the private players have grabbed over 24% share. “With the huge potential the market has, the Government should, more seriously look into increasing the FDI cap in the sector" said Mahendra K. Sanghi, ASSOCHAM President. During April-June 2005, the largest private company ICICI Prudential has increased its share from 6.25% in 2004-05 to 7.68% in current fiscal. The opening up of the sector has given some of the most innovative products like the customized insurance policies and now the unit linked policies that  have gained much of customer attention. The sector has huge potential and certain other new and innovative areas can also be looked into for enhancing market share and premium income, said Sanghi.

HDFC is next in the row with 2.91% market share which has increased from 1.92%last fiscal followed by TATA AIG which now shares 2% of the market from 1.18%last fiscal. Birla Sun life's share has dropped from 2.45% during FY'05 to 1.76% in first two months of FY'06. SBI life comes next with 1. 72% share and has in fact dropped a few percent points from last year. Max New York life and Aviva Life Insurance have captured more than 1% share each from less than 1% share during FY'05.

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Others like ING, AMP Sanmar, Met Life and Sahara India have less than 1 % share. The detail of the market share of life insurance companies is attached. The market share of the private players has doubled every year from 5.6% in 2002-03 to, 12% in2003-04 and close to 22% in 2004-05.The state run insurance company has the biggest advantage of its huge network which the company can use to penetrate into rural market that is still lying untapped. Another option with the life insurance companies to capture more and more market share could be product innovation and constantly developing an insurance product in order to meet the ever-changing requirements of the customer. Quality customer service and education can be another area where a company can differentiate itself 48 from other companies.

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4.2 CURRENT STANDING OF LIFE INSURANCE COMPANIES IN URBAN SECTOR.

Life insurance is possibly the most- retail of all financial services, and is required by people of all segments and in all locations. At a broad level, ICICI Prudential aims to secure the families of the middle and upper class working people in urban India. To this end, they have pursued a pan-India distribution strategy and backed it up with arrange of products that meets the needs of a wide range of people, be they from rural or urban areas. Today, they have branches in 74 locations and rural presence in more than 15 states. Certainly, the majority of the business still comes from urban areas such as metros and mini-metros. However, they have seen rural business grow si gnificantly and expect it to continue making greater contribution in the years to come.

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4.3 NETWORK OF LIC

All Life Insurance Corporation branches in the country would be interconnected under Metro Area Network (MAN) inaugurated here on Thursday. Speaking at the function, K Vaidyalingam, LIC southern zonal manager, said about 1500 branches would be getting covered under MAN in which the premium amount of the policy holder could be remitted in any branch. Besides, the policy holder gets his status report, policy position, revival and quotation from the network. In every one hour the system got upgraded, he said. In southern region there are about 10 lakh new policy holders with a business of Rs 6500 crore. About settlement of claims, 92 per cent of policies were settled on or before maturity, he said, adding, LIC was in a better position and 100 per cent connectivity was taking place. Kottayam stood third in premium collection during the period between April to August  2002, the first being Kozhikode and Thiruvananthapuram in second position in southern region. The premium amount collected in 2001 was Rs.74,000 crore through 2.32 crore new policies by 8.2 lakh agents. LIC has introduced a new group insurance scheme for Corporation Bank deposit holders.

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4.4 CURRENT STATUS

Over its existence of around 50 years, Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses, and contributed around 7 % of India's GDP in 2006. The Corporation, which started its business with around 300 offices, 5.6 million policies and a corpus of INR 459 million, has grown to 2,048 offices servicing around 180 million policies and a corpus of over INR 3.4 trillion. The organization now comprises 2048 branches, 100 divisional offices and 8 zonal offices, and employs over 1 million agents. It also operates in 12 other countries, primarily to cater to the needs of Non Resident Indians. With the change in the India's economic philosophy from the early 1990s, and the subsequent relaxation of state control over several sectors of the economy, the monopolistic position of the Life Insurance Corporation of India was diluted, and it has had to compete with a number of other corporate entities, Indian as well as transnational Life Insurance brands. In the financial year 2006-07 Life Insurance Corporation of India's number of policy holders are said to have crossed a whopping 200 million (fourth in terms of population of the countries of the world)

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4.5 LIC THE BEST-K NOWN INDIAN BRAND: CHIDAMBARAM

FROM STRENGTH TO STRENGTH: Union Finance Minister P. Chidambaram

launching LIC’s web portal in Chennai on Tuesday. Others from left are D.K. Mehotra, Managing Director, LIC, and A.K. Shukla, Chairman. — Photo: Shaju John

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CHENNAI: Describing Life Insurance Corporation of India as the best-known Indian brand, Union Finance Minister P. Chidambaram, said on Tuesday that even after the opening up of the insurance sector to private firms, the Corporation remained the market leader. Launching LIC's e-portal here, he said the Corporation "supported us (government) when we opened up insurance because it was confident of doing better in a competitive environment. LIC continues to be the market leader with 88 per cent market share of  new policies and 78 per cent of premium. It is clearly recognised as the market leader." The e-portal (licindia.com) will provide information on policy status, bonus, premium payment, loans and change of address. It will facilitate online payment of premium and has details of the doctors and agents. It also has a branch locator and `maturity alert' facility. The objective is to provide world-class service. Noting that the State-owned Corporation utilised information technology in its relentless effort to remain the leader, Mr. Chidambaram said: "My goal is to make LIC a world class insurance company. It is nearly world class now." All 2,048 branches of LIC, which had been adjudged the best user of IT by NASSCOM, were fully automated. Barring ten, all the branches were networked. Mr. Chidambaram said the e-portal was another example of LIC's constant innovation using information technology. Some of the multi-interfaces it offered to customers included call centres, IVRS, SMS and satellite branches.

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4.6 WHY LIC IS TRUSTED BRAND OF INDIA?

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

insurance and money management. LIC's Life Fund size as on day is more than Rs 5 Lakh Thousand Crores. 2) Any LIC policyholder or the nominee will vouch for the best claims settlement 

from LIC. Perhaps, this is the only institution where you as a policyholder are virtually chased till such time your claim cheques is handed over to you! 3) LIC has won `NDTV Profit Leadership Award 2007 under Life Insurance

Category', `Outlook Money Award 2007 as the best Life Insurer', `CNBC Awaaz Consumer Award 2007 as the best Life Insurance Company', `Golden Peacock  Award for excellence in Corporate Governance 2007', `Web 18 Genius of the Web Award 2007 and many more'. 4) LIC adjudged No.1 Trusted Service Brand for the 4th successive year by ET Brand

Equity Survey. 5) LIC has been adjudged Superbrand India for 2004-06 and Reader's Digest 

`Trusted Brand' Asia 2007. 6) This is the only corporation that is catering to more than 190 million satisfied

policyholders in India and abroad. 7) This is one of the very few institutions that pays ex-gratia interest on pending

maturity claims! 8) More than 2050 LIC branches all over India are connected together to serve you.

You can pay your premium anywhere in the country. 9) During its long existence, LIC has kept on updating its portfolio by bringing in

new plans depending on public requirement. More than 50 of them are most  popular and can be customized to meet any of your requirements. LIC ULIPs have become extremely popular due to the returns they offer. Money Plus- latest  LIC Unit Linked Plan is a case in point.

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All LIC Plans come with Sovereign Guarantee i.e., Govt of India Guarantee

regarding repayment. Infact, as of now, only LIC plans enjoy this Govt Guarantee. Beneficiary for this Sovereign Guarantee is you and you alone as the policyholder/ would-be policyholder. 11)

All LIC plans are characterized by low premium, high life insurance

coverage and a vast package of benefits offered by them. Add to this package, section 80C benefit and section 10(10D) benefit on the maturity proceeds, you will find investment on LIC plans one of the most coveted investment options available to you. 12)

Premium paid under Key-Man Insurance plan is a recognized business

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

Through Employer-Employee Insurance scheme, you can recognize the

worth of your most valuable employees whose absence you can ill afford to lose. 14)

Entire contribution to LIC Group Gratuity Scheme is a recognized business

expense in the hands of the employer. In addition, through this scheme, the employer can transfer his gratuity liability to the corporation and fund the same under cash accumulation scheme. The most popular among all the companies. 15)

LIC is declaring quite an impressive bonus (profits) on all its with-profits

policies every year. Extra attraction under LIC Bonus is (a) it is calculated every year on the insured amount and not on the premium paid and (b) entire bonus received along with insured amount either by you on maturity of your policy(ies) or by your nominee in your absence during the currency of your policy(ies) is free from income-tax under section 10(10D) of the Income-tax Act. 16)

On most of the LIC plans, you can borrow to take care of your immediate

monetary requirements. None of the policy benefits get affected as a result o f  borrowal. Infact, policy loans offer one of the most attractive investment  opportunities. 17)

You can pay your premium 3 years in advance at 5% discount. Chief 

attractions of this advance payment of premium are (a) there is no possibility of  your overlooking your premium payment and getting your policy(ies) lapsed wherever you are in the world and (b) you will be earning 5% tax-free interest 

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on the unutilized portion of the amount left with LIC after apportioning the regular instalment. 18)

Most of the LIC plans come with Riders to take care of Total and

Permanent Disablement due to Accident and some of the most dread diseases that may result in loss of income. 19)

LIC pension plans that guarantee your life pension are extremely popular.

You can park your hard earned money safely with the corporation and enjoy pension as long as you are alive. Due to these reasons and lot more, LIC should be your obvious choice for all your life insurance requirements.

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CHAPTER 5 ROLE OF LIC OF INDIA IN INTERNATIONAL M ARKET

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5.1 ROLE OF LIC IN INTERNATIONAL M ARKET Government has allowed 26% foreign equity participation in the insurance sector. This has its limitations. While most foreign insurers planning to start their services in India were not pleased by this condition, they reluctantly agreed that this was expected in an opening economy and this will not change their outlook for India. After all no insurance company can afford to ignore a market of 1bn people. But the fact  remains those they: • Cannot appoint majority directors on the company board; • Cannot have say in the day to day workings of the company; • Can Affect Only Special Resolutions.

This cap, however, will have a great impact on the Indian counterpart to raise 74% of the funds in their joint venture. To add to this if Indian partners like State bank  of India, with over 9000 branches nationwide, will demand premium for their existing distribution network, we will see the foreign insurance companies demand hefty premiums for bringing in their global expertise and brand. Mr. Vaidya, Chairman of SBI, has recently stated that all it is looking for is a good and reliable partner and thequestion of a hefty premium to be charged to its foreign partner is not significant. The monolith has finally come to business senses foreign companies are unhappy even about laws pertaining to repatriation of funds. The Stipulated investment criteria is also something that all players in the sector, be it Indian or foreign, are closing watching. The foreign players are essentially looking to tap their" global expertise in the variety markets and use that know-how to work in the Indian scenario. Designing of products, information systems, technical expertise, manpower planning etc. is what one expects the foreign players to have a say in Any venture of the joint kinds needs to be between equals. If this is not there then there is every chance that a partner in the venture will feel increasingly uncomfortable and would be looking to call the joint venture off.

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5.2 INTERNATIONAL OPERATIONS /ASSOCIATES

LIC has always acknowledged the need to expand. Our expanding efforts have been consistent and are evident though our associations given below for your reference.

INTERNATIONAL OPERATIONS



LIC Fiji



LIC Mauritius



LIC United Kingdom



LIC (International) B.S.C (C), Bahrain



LIC (Nepal) Ltd



LIC (Lanka) Ltd



Saudi Indian Company for Co-op. Insurance, KSA.



LIC Mauritius Offshore Ltd.



LIC Co-ordinating Office in India

 ASSOCIATES



LIC Housing Finance Ltd.



LICHLF Care Homes Ltd.



LIC Mutual Fund AMC Ltd.

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SUBSIDIARIES LIC owns the following subsidiaries: 

Life Insurance Corporation of India International : This is a joint venture

offshore company promoted by LIC which commenced operations in July, 1989 with the objectives of offering US$ denominated policies to cater to the insurance needs of NRIs and providing insurance services to holders of LIC policies currently residing in the Gulf. LIC International operates in all GCC countries. 

LIC Nepal: A joint venture company formed in 2001 with the Vishal Group of 

Industries, Nepal.

LIC Lanka: A joint venture company formed in 2003 with the Bartleet Group of 

Companies, Sri Lanka

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CHAPTER 6 RESEARCH ANALYSIS

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RESEARCH PROBLEMS

After doing the literature review and understanding the motives of the INSURANCE in India and benefits achieved there by, question arises whether LIC is beneficial for Insurance sector. . This report gaps lead to the following objectives of the study

RESEARCH OBJECTIVE: Objective of a research work defines the driving force for a research action. It is the focal point around which the whole action revolves. This dissertation was undertaken to fulfil the following objectives: 

To study the insurance sector.



To study Role of LIC on Insurance Industry

Sample Design:

a) Population:

Customers of Lic Of India

c) Sampling Unit:

LIC OF INDIA

d) Sample size:

20 customers

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RESEARCH PLAN: A systematic and planned move to accomplish the research objective is always appreciable in conducting a resourceful research work. My dissertation was also accomplished in a systematic way. The flowchart of my research plan was as follows:

Insight into the INSURANCE INDUSTRY

The motives and benefits of LIC in Insurance Industry. . Collection of data with regard to secondary research

Secondary research was conducted with regard to the short term & lon term im act stud .

Analysis of the research findings was done, which led to certain conclusions and recommendations.

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1. Do you have life insurance policy?

OPTION YES NO

RESPONSE 20 -

PERCENTAGE (%) 100 -

25

20

15 YES NO

10

5

0 YES

NO

CONCLUSION 100% People Are Having Life Insurance Policy.

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2. If yes, then in which company?

OPTION LIC HDFC ICICI OTHERS

RESPONSE 8 4 5 3

PERCENTAGE (%) 40 20 25 15

8 7 6 OTHERS

5

ICICI 4

HDFC LIC

3 2 1 0 LIC

HDFC

ICICI

OTHERS

CONCLUSION Out of all the companies majority of the people prefer LIC of India.

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3. Are you satisfied with services provided by your Insurance Company?

OPTION YES NO

RESPONSE 17 3

PERCENTAGE (%) 85 15

YES NO

CONCLUSION 85% of the people are satisfied by insurance companies regarding services.

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4. According to you, who have played a major role in the field of Life

Insurance Company?

OPTION LIC HDFC ICICI OTHERS

RESPONSE 11 4 5 -

PERCENTAGE (%) 55 20 25 -

12

10

8

LIC HDFC

6

ICICI OTHERS

4

2

0 LIC

HDFC

ICICI

OTHERS

CONCLUSION 55% Of The People Agree That LIC Of India Had Plays Major Role In Life Insurance Policies

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Role

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5. Which Insurance companies have been successful to make strong

public base by advertisement?

OPTION LIC HDFC ICICI OTHERS

RESPONSE 11 2 7 -

PERCENTAGE (%) 55 10 35 -

12

10

8

LIC HDFC

6

ICICI OTHERS

4

2

0 LIC

HDFC

ICICI

OTHERS

CONCLUSION

According to survey LIC of India have been successful to make strong public base by advertisement.

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Which Insurance Company has gained massive public support in the current fiscal year?

OPTION LIC HDFC ICICI OTHERS

RESPONSE 14 1 5 -

PERCENTAGE (%) 70 5 25 -

14 12

LIC

10

HDFC

8

ICICI OTHERS

6 OTHERS

4

ICICI

2

HDFC LIC

0 LIC

HDFC

ICICI

OTHERS

CONCLUSION LIC of India has massive public support in the current fiscal year which is 70%

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7. Do you think Insurance Policy is in the direction of public welfare?

OPTION YES NO

RESPONSE 19 1

PERCENTAGE (%) 95 5

20 18 16 14 12 10

YES

8

NO

6 4

NO

2 0 YES YES NO

CONCLUSION 95% of people think that Insurance Policy is in the direction of public welfare.

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8. 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?

OPTION YES NO

RESPONSE 10 10

PERCENTAGE (%) 50 50

YES NO

CONCLUSION

Half of the people agree that 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.

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9. Do you think that risk coverage factor included in Insurance policy

attracts general public towards the policy?

OPTION YES NO

RESPONSE 16 4

PERCENTAGE (%) 80 20

YES NO

CONCLUSION

80% of people think that risk coverage factor included in Insurance policy attracts general public towards the policy.

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Do you think that the arrival of so many private companies in

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

OPTION YES NO

RESPONSE 12 8

PERCENTAGE (%) 60 40

YES NO NO

YES

0

2

4

6

8

10

12

14

CONCLUSION

According to survey 60% people 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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Do you agree that customer-centricity and transparency are

the buzzwords for success in this evolving industry?

OPTION YES NO

RESPONSE 17 3

PERCENTAGE (%) 85 15

18 16 14 12

NO

10

YES

8 6 4 2 0 YES

NO

CONCLUSION 85% OF PEOPLE agree that customer-centricity and transparency are the buzzwords for success in this evolving industry.

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Which sector is better to invest in Life Insurance Company?

OPTION PUBLIC SECTOR PRIVATE SECTOR

RESPONSE 15 5

PERCENTAGE (%) 75 25

16 14 12 10

NO

8

YES

6 4 2 0 YES

NO

CONCLUSION 75% of people think that public Sector Is Better To Invest In Life Insurance Company.

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CHAPTER 7

FINDINGS, RECOMMENDATIONS & CONCLUSION

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7.1FINDINGS

1) Now days also insurance is most popular as more plain protection against death and people are unaware about the other aspects of insurance. 2) According to current scenario life and mater insurance are the most popular ones followed by fire insurance. 3) Majority of people consider the insurance premium paid by them as reasonable. 4) Only few counted people are unaware about the entry of private players into. The insurance industry and a very high majority of people support their entry. 5) By the entry of private players. Consumers are expecting the premium to down which would be the biggest blessing.

After finding’s we can see about  LIC OF INDIA features and his the tendency to

take the expedient approach and focus on the far right of the LIC OF INDIA spectrum, peacetime contingency operations and conduct training as usual, while briefing that the LIC OF INDIA block has been checked, will lead us to a possibly fatal false sense of  security. The probability of becoming involved in a LIC OF INDIA operation is high. The potential to attract international attention, even with limited forces, is also great. Units have demonstrated that with a balanced training focus and proper preparation, many pitfalls outlined above can be avoided

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7.2 RECOMMENDATIONS In the modernized well advanced hi-tech approach to the customer every possible facilities and effort to build up the confidence of the rising policy holders towards. Insurance companies, to complete one another nothing is left to recommend. But some recommendations that are intensely felt and highly required for insures to sustain in the market. These are as follows: a) More and more transparency should be ascertained between insurers and policy holders. b) Particularly, in the emerging boom in the insurance company, every insurance company should be customer cantered, and well versed in the handling of problem and grievances of the policy holders c) Each and Every product launched by the Insurance company should be in favour of  increasing need of policy holders. IRDA should be more and more responsible to the insurance sector by determining some standard. It should be mandatory to every insurer to make more and more responsible and responsive to the policy holders so that  comprehensive understanding may be developed among policy holders. It may be beneficial on both sides.

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7.3 CONCLUSION After overhauling the all situation that boosted a number of Pvt. Companies associated with multinational in the Insurance Sector to give befitting competition to the established behemoth LIC in public sector, we come at the conclusion that : 1) There is very tough competition among the private insurance companies on the level of new trend of advertising to lull a major part of Customers. 2) LIC is not left behind in the present race of advertisement. 3) The entry of the Pvt. Players in the Insurance Sector has expanded the product  segment to meet the different level of the requirement of the customers. It has brought  about greater choice to the customers. 4) Private insurers have restricted reach to the customers 5) LIC has vast market and very firm grip on its traditional customers and monopoly of  life insurance products. 6) Bank assurance - that allows life insurers to leverage on the risk product through bank network, was adopted by private players.

But LIC was also not left behind as picking up majority stake in the corporation Bank and large equity stake in the Oriental Bank of Commerce. IRDA is also playing very comprehensive role by regulating norms mandating to private players in this sector, that increases the confidence level of the customers to the private players.

After Finding’s we can see about LIC features and his The tendency to take the

expedient approach and focus on the far right of the LIC spectrum, Peacetime Contingency Operations and conduct training as usual, while briefing that the LIC block  has been checked, will lead us to a possibly fatal false sense of security. The probability of becoming involved in a LIC operation is high. The potential to attract international attention, even with limited forces, is also great. Units have demonstrated that with a balanced training focus and proper preparation, many pitfalls outlined above can be avoided.

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LIC is not conventional warfare. This is critical for the counterinsurgent to understand. The insurgent’s violent and coercive strategy is applied so as to achieve

political, civil, military and psychological results. Hence, the counterinsurgent must  counter all of these strategic elements individually. In addition, the target of the insurgent’s violence and coercion is the population. This is because the population is the

centre of gravity in LIC.

Therefore the counterinsurgent must also focus on the population to be successful. In terms of military principles in counterinsurgency, doctrinal precision, professionalism, independence, initiative, force precision, restraint, combined arms, precision engagement, joint force, effective population based intelligence, integrated communications, a civil affairs approach and high levels of training are critical.

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BIBLIOGRAPHY 

Magazine 

Yogkshem – LIC OF INDIA Magazine



Outlook Express



Business today



Finance & Banking



Money Outlook 

News Paper 

Business standard



Times of India



Economic times



Hindustan times

WEBLIOGRAPHY 



www.bloomberg.com



www.moneycontrol.com



www.allbankingsolution.com



www.scribd .com



www.rbi.org

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QUESTIONNAIRE FORMAT KES SHROFF COLLEGE OF ARTS AND COMMERCE

SURVEY CONDUCTED ON “ROLE OF LIC IN INSURANCE INDUSTRY” NAME: SAGAR CHITRODA CLASS: TYBBI (VIth SEMESTER)

NAME OF CUSTOMER: CONTACT NO.: 1) Do you have life insurance policy?

Yes

No

2) If yes, then in which company? LIC

HDFC

ICICI

OTHERS

3) Are you satisfied with services provided by your Insurance Company?

Yes

No

4) According to you, who have played a major role in the field of Life Insurance Company? LIC

HDFC

ICICI

OTHERS

5) Which Insurance companies have been successful to make strong public base by advertisement? LIC

HDFC

ICICI

OTHERS

6) Which Insurance Company has gained massive public support in the current fiscal year? LIC

HDFC

ICICI

OTHERS

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