Ankush Lic

INDEX Table of Contents

Student declaration  i

Certificate from Guide  ii

Acknowledgement iii

Executive summary  iv

CHAPTER-1

 Introduction

CHAPTER-2

Company Profile

CHAPTER-3

Research Methodology

CHAPTER-4

Data Analysis

CHAPTER-5

 Policies and Plans

CHAPTER-6

 Findings

CHAPTER-7

 Conclusion

BIBLOGRAPHY

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EXECUTIVE SUMMARY

Insurance is the most familiar word or phrase used in today’s life. Insurance companies are those institutes that provide various types of facility and services in term of their plans and policies to the consumers. The following project has been made on one of the largest company in insurance sector in India which is owned by government which is “LIFE INSURANCECORPORATION OF INDIA”. The following project makes an analysis of the products of LIC. The brief summary of each chapter is discussed as follows:-

CHAPTER-1

It consist of information of the industrial profile of the life insurance sector i.e. when and how does this sector emerges and how it contributes to the economy.

CHAPTER-2

Chapter 2 includes company profile of LIC i.e. how and when it is formed, which were the companies that merges and form LIC, its milestones, its objectives, mission and vision, what is life insurance, board of directors, a brief on the subsidiaries. It also includes awards and achievements by LIC.

CHAPTER-3

Purpose of the study for which it is conducted, objective while conducting the study and methodology which consist of the medians used and the tools used to complete the study. 

CHAPTER-4 It includes some of the products offered by LIC, net asset value of the products, tax benefits to its policy holders categorized according to their age. It also shows the relationship of LIC with information technology.

CHAPTER-5

This chapter includes the findings and analysis retrieved after the study of the of the project.

CHAPTER-6

Chapter 6 consists of the conclusion arrived after analyzing and findings from the study.

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CHAPTER-1INRODUCTION

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INSURANCE COMPANIES IN INDIA

In India, Insurance is a national matter, in which life and general insurance is yet a booming sector with huge possibilities for different global companies, as life insurance premiums account to 2.3% and general insurance premiums account to 0.65% of India’s GDP. The Indian Insurancesector has gone through several phases and changes, especially after 1999, when the Govt. of India opened up the insurance sector for private companies to solicit insurance by passing Insurance Regulatory and Development Authority (IRDA) Bill, allowing FDI up to 26%. Since then, the Insurance sector in India is considered as a flourishing market amongst global insurance companies. However, the largest life insurance company in India is still owned by the government.

The history of Insurance in India dates back to 1818, when Oriental Life Insurance Companywas established by Europeans in Kolkata to cater to their requirements. Nevertheless, there was discrimination among the life of foreigners and Indians, as higher premiums were charged from the latter. In 1870, Indians took a sigh of relief when Bombay Mutual Life Assurance Society, the first Indian insurance company covered Indian lives at normal rates. Onset of the 20th century brought a drastic change in the Insurance sector.

In 1912, the Govt. of India passed two acts - the Life Insurance Companies Act, and the Provident Fund Act - to regulate the insurance business. National Insurance Company Ltd, founded in 1906, is the oldest existing insurance company in India. Earlier, the Insurance sector had only two state insurers - Life Insurers i.e. Life Insurance Corporation of India (LIC), and General Insurers i.e. General Insurance Corporation of India (GIC). In December 2000, these subsidiaries were de-linked from parent company and were declared independent insurance companies: Oriental Insurance Company Limited, New India Assurance Company Limited, National Insurance Company Limited and United India Insurance Company Limited.

With an annual growth rate of 15-20% and the largest number of life insurance policies in forces, the potential of Indian insurance industry is huge. Total value of the Indian insurance market (2004-05) is estimated at Rs. 450 billion (US$10 billion).  The life insurance industry in India grew by an impressive 36%, with premium income from new business at Rs. 253.43 billion during the fiscal year 2004-2005 braving stiff competition from private insurers. This report, Indian Insurance Industry: New Avenues for Growth 2012", finds that the market share of the state behemoth, LIC, has clocked 21.87% growth in business atRs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this was still not enough to arrest the fall in its market share, as private players grew by 129% to mop up Rs. 55.57 billion in 2004-05 from Rs. 24.29 billion in 2003-04.Though the total volume of LIC's business increased in the fiscal year (2004-2005) compared to the previous one, its market share came down from 87.04 to 78.07%.The 14 private insurers increased their market share from about13% to about 22% in a year's time. The figures for the first two months of the fiscal year 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 percent, while the private players have grabbed over 24 percent. There are presently 12 general insurance companies with four public sector companies and eight private insurers and private insurance companies collectively have a 10% share of the non-life insurance market.

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CHAPTER-2COMPANY PROFILE

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COMPANY PROFILE

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 centuriesyet 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 Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standards 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 Swadesh imovement 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 inone 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, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certifies by anactuary. 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 44companies with total business-in-force as Rs.22.44 crore, it raised 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 Act1938 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 abill 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 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 morewidely and in particular to the rural areas

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with a view to reach all insurable persons inthe country, providing them adequate financial cover at a reasonable cost.LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart fromits 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 about200.00 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 1985-86LIC had already crossed 7000.00 crore Sum Assured on new policies. Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7zonal offices and the corporate office. LIC’s Wide Area Network covers100 divisional offices

and connects all the branches through a Metro Area Network.LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LIC’s ECSand ATM premium payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centers have been commissioned at Mumbai, Ahmadabad, 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 SATELLITESAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future.LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire usat 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. Some of the important milestones in the life insurance business in India are:1 8 1 8 : O r i e n t a l L i f e I n s u r a n c e C o m p a n y , t h e f i r s t l i f e i n s u r a n c e c o m p a n y o n I n d i a n soil started functioning.1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started itsbusiness.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 TritonInsurance Company Ltd., the first general insurance company established in the year

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1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are:1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business.1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices.1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up.1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general insurance business in India with effect from 1st January 1973.107 insurers amalgamated and grouped into four companies’viz. the National Insurance Company Ltd., the New India Assurance Company Ltd.,the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

LIC SUBSIDIARIES Unlike provisions for private players in the insurance sector, the LIC Act provides for setting up subsidiaries through policy holders fund. It is due to the LIC act that LIC of India has a number of subsidiaries which help it in leveraging its potential to the maximum, providing an enhanced set of diversified services to itscustomer’s.These subsidiaries include LIC International,LIC Nepal, LIC Lanka, LIC Housing Finance and LIC Mutual Fund.

LIC INERNATIONALThis 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 NEPALA joint venture company formed in 2001 with the Vishal Group of Industries, Nepal.

LIC LANKAA joint venture company formed in 2003 with the Bartleet Group of Companies, Sri Lanka.

LIC HOUSING FINANCE LTD.The Company is recognized by National Housing Bank and listed on the National Stock Exchange (NSE) & Bombay Stock Exchange Limited (BSE). LIC Housing Finance Ltd. is oneof the largest Housing Finance Company in India. Incorporated on 19th June 1989 under theCompanies Act, 1956, the company was promoted by LIC of India and went public in the year1994. Its main objective is to provide long term finance for construction or purchase of houses orapartments. It has a Dubai office.

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LIC MUTUL FUND LTD. Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989 and contributedRs. 2 Crores towards the corpus of the Fund. LIC Mutual Fund was constituted as a Trust inaccordance with the provisions of the Indian Trust Act, 1882.There are some other subsidiaries of LIC which are 1. LIC Mutual Fund Asset Management Company Ltd.

2. LIC HFL Care Homes Ltd.3. LICHFL Asset Management Company Private Limited.4. LICHFL Trustee Company Private Limited.5. LICHFL Financial Services Limited, etc.

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WHAT IS LIFE INSURANCE? Life insurance is a contract that pledges payment of an amount to the person assured (or hisnominee) on the happening of the event insured against. The contract is valid for payment of theinsured amount during:•The date of maturity, or  •Specified dates at periodic intervals, or  •Unfortunate death, if it occurs earlier.Among other things, the contract also provides for the payment of premium periodically to theCorporation by the policyholder. Life insurance is universally acknowledged to be an institution,which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of thefamily in the unfortunate event of death of the bread winner. By and large, life insurance is civilization’s partial solution to the problems caused by death. Lifeinsurance, in short, is concerned with two hazards that stand across the life-path of every person:1. That of dying prematurely leaves a dependent family to fend for itself.2. That of living till old age without visible means of support.Life Insurance Vs. Other Savings Contract of Insurance: A contract of insurance is a contract of utmost good faith technically known as uberrima fides.The doctrine of disclosing all material facts is embodied in this important principle, whichapplies to all forms of insurance. At the time of taking a policy, policyholder should ensure thatall questions in the proposal form are correctly answered. Any misrepresentation, non-disclosureor fraud in any document leading to the acceptance of the risk would render the insurancecontract null and void.

Protection: 

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

Aid to Thrift:Life insurance encourages 'thrift'. It allows long-term savings since payments can be madeeffortlessly because of the 'easy installment' facility built into the scheme. (Premium payment forinsurance is monthly, quarterly, half yearly or yearly). For example: The Salary SavingScheme popularly known as SSS provides convenient method of paying premium each monthby deduction from one's salary. In this case the employer directly pays the deducted premium toLIC. The Salary

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Saving Scheme is ideal for any institution or establishment subject to specifiedterms and conditions. Liquidity: In case of insurance, it is easy to acquire loans on the sole security of any policy that hasacquired loan value. Besides, a life insurance policy is also generally accepted as security, evenfor a commercial loan. Tax Relief:Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This isavailable for amounts paid by way of premium for life insurance subject to income tax rates inforce. Assesses can also avail of provisions in the law for tax relief. In such cases the assured ineffect pays a lower premium for insurance than otherwise. Money When You Need It:A policy that has a suitable insurance plan or a combination of different plans can be effectivelyused to meet certain monetary needs that may arise from time-to-time. Children's education,start-in-life or marriage provision or even periodical needs for cash over a stretch of time can beless stressful with the help of these policies.

  Alternatively, policy money can be made available at the time of one's retirement from serviceand used for any specific purpose, such as, purchase of a house or for other investments. Also,loans are granted to policyholders for house building or for purchase of flats (subject to certainconditions).

Who Can Buy A Policy? Any person who has attained majority and is eligible to enter into a valid contract can insurehimself/herself and those in whom he/she has insurable interest. Policies can also be taken,subject to certain conditions, on the life of one's spouse or children. While underwriting proposals, certain factors such as the policyholder’s state of health, the proponent's income andother relevant factors are considered by the Corporation. Insurance for Women Prior to nationalization (1956), many private insurance companies would offer insurance tofemale lives with some extra premium or on restrictive conditions. However,  after n a t i o n a l i z a t i o n   o f l i f e   i n s u r a n c e ,   t h e t e r m s u n d e r w h i c h   l i f e   i n s u r a n c e i s   g r a n t e d t o female lives have been reviewed from time-to-time. At present, women who work and earn anincome a r e t r e a t ed a t pa r w i th men . I n o the r c a se s , a r e s t r i c t i ve c l ause i s imposed , on ly i f   the age of the female is up to 30years and if she does not have an income attracting IncomeTax.

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 Medical and Non-Medical Schemes

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

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

Keyman Insurance

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

OBJECTIVES OF LIC 

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•Spread Life Insurance widely and in particular to the rural areas and to the socially andeconomically backward classes with a view to reaching all insurable persons in the countryand providing them adequate financial cover against death at a reasonable cost.•Maximize mobilization of people's savings by making insurance-linkedsavings adequatelyattractive.•Bear in mind, in the investment of funds, the primary obligation to its policyholders, whosemoney it holds in trust, without losing sight of the interest of the community as a whole; thefunds to be deployed to the best advantage of the investors as well as the community as a whole,keeping in view national priorities and obligations of attractive return.•Conduct business with utmost economy and with the full realization that the moneys belong tothe policyholders.•Act as trustees of the insured public in their individual and collectivecapacities.•Meet the various life insurance needs of the community that would arise in the changing socialand economic environment.•Involve all people working in the Corporation to the best of their capability in furthering theinterests of the insured public by providing efficient service with courtesy.•Promote amongst all agents and employees of Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

 MISSION "Explore and enhance the quality of life of people through financial security by providingproducts and services of aspired attributes with competitive returns, and by rendering resourcesfor economic development."

VISSION "A trans-nationally competitive financial conglomerate of significance to societies and Pride of India." 

BOARD OF DIRECTORS Members on the Board of the Corporation

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 1.Chairman : Shri. T.S. Vijayan 2.Managing Director : Shri. D.K. Mehrotra3.

3.Managing Director : Shri. Thomas Mathew T.4.

4.Managing Director : Shri. A.K. Dasgupta5.

5.Finance Secretary :Shri. Ashok Chawla (Ministry of Finance, Govt. of India)

6.Additional Secretary : Shri. G.C. Chaturvedi ( D e p a r t m e n t o f   F i n a n c i a l Services, Ministry of Finance, Govt. of India.) 7. Chairman cum Managing Director:Shri. Yogesh Lohiya(GIC of India) 8. Chairman & Managing Director :Shri. T.C. Venkat Subramanian (Export-import Bank of India) 9.Dr. Sooranad Rajashekhran 10.Shri. Monis R. Kidwa 

AWARDS AND ACHIVEMENTS

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CHAPTER-3RESEARCH

METHODOLOGY

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PURPOSE OF THE STUDY The purpose behind the study of LIFE INSURANCE CORPORATION OF INDIA is tounderstand thecompanies’background as well as the nature of the various products offered overmany years in India. Purpose is to study the products and their benefits to customers. This givesa brief idea of products of the company.  OBJECTIVES OF THE STUDY

1.The objectives behind the study of the plans and policies of LIFE INSURANCECORPORATION OF INDIA are:1. To impart knowledge about the history and objectives of the company and also its differentsubsidiaries. 2. To aware the readers about the different plans and policies provided by LIC, the revalue andbenefits to its customers

 METHODOLOGY

DATA COLLECTION:

All the information provided on LIFE INSURANCE CORPORATION OF INDIA in the projectreport has been collected through secondary resources. No survey has been conducted tocollect information for the study. Therefore only secondary data issued in the study.

STATICAL TOOLS:

Secondary resources used in the study for information collection is internet and magazines.Magazines & websites have been used and the information retrieved from these sources is thengathered in this project. Other tools used in the study which are used in the preparation of theproject after collecting information are: 

MS Word

MS Excel

LIMITATION OF THE STUDY 

Since the study was undertaken for a short period so time was the biggest constraint. Since subject taken is vast so there are always possibilities that something mayn’t be forgotten to be mentioned  Data collected may not be 100 % reliable and accurate or dependable, since the

datacollection source was secondary.

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CHAPTER-4POLICIES

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POLICIES (SCHEMES)

Life Insurance Corporation of India provides number of products to its costumers.LICdifferentiated their policies into five different types which are:1. Insurance Plans2. Pension Plans3. Unit Plans4. Special Plans5. Group Scheme

INSURANCE PLANSAs individuals it is inherent to differ. Each individual’s insurance needsand requirements aredifferent from that of the others. LICs Insurance Plans are policies that talk  to you individuallyand give you the most suitable options that can fit your requirement. 

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 Benefits in case of survival to the end of selected term: The Sum Assured along with the vested bonuses is payable in a lump sum on survival to the endof the term. An additional Sum Assured is payable on death thereafter.

Accident Benefit: An additional Sum Assured (subject to a limit of Rs.5 lakh) is payable in a lump sum on deathdue to accident up to age 70 of life assured. In case of permanent disability of the life assureddue to accident this additional Sum assured is payable in installments.

Supplementary/Extra Benefits:

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

Surrender Value:

Buying a life insurance contract is a long-term commitment. However,surrender values are available on the plan on earlier termination of the contract.

Guaranteed Surrender Value:

The policy may be surrendered after it has been in force for 3 years or more. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year’s premium. Anyextra premium(s) paid and premium(s) towards Accident Benefit are also excluded.

Corporation’s policy on surrenders:In practice, the Corporation will pay a Special Surrender Value – which is either equal to or morethan the Guaranteed Surrender Value. The benefit payable on surrender reflects the discountedvalue of the reduced claim amount that would be payable on death or at maturity. This value willdepend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender valuepayable may be less than the total premium paid. 2. Jeevan Shree-IProduct summary:This is an Endowment Assurance plan offering the choice of many convenient premiumspaying terms. It provides financial protection against death throughout the term of plan with thepayment of maturity amount on survival to the end of the policy term.

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Premiums:Premiums are payable yearly, half-yearly, quarterly or through Salary deductions, as optedby you, throughout the premium paying term or till earlier death. Alternatively premium may bepaid in one lump sum (Single premium).

Guaranteed AdditionsThe policy provides for the Guaranteed Additions at the rate of Rs. 50/- perthousandSum Assured for each completed year for first five years of the policy. TheGuaranteedAdditions are payable along with the Basic Sum Assured at the time of claim.

Bonuses:The policy participates in the profits of the Corporation’s life insurance business from the 6thyear onwards. It will get a share of the profits in the form of bonuses. Simple ReversionaryBonuses will be declared per thousand Basic Sum Assured annually at the end of each financialyear. Once declared, they will form part of the guaranteed benefits of the plan.

Benefits Death Benefit:The Sum Assured along with guaranteed additions and vested bonuses, if any,is payable in a lump sum on death of the life assured during the policy term.

 Maturity Benefit:The Sum Assured along with guaranteed additions and reversionary bonuses, if anyis payable in a lump sum on survival to the end of the policy term. Supplementary/Extra Benefits:These are the optional benefits that can be added to your basic plan forextra protection/option. An additional premium is required to be paid for these benefits. Surrender Value:Buying a life insurance contract is a long-term commitment. However,surrender value is available on the plan on earlier termination of the contract.

Guaranteed Surrender Value:The policy may be surrendered after it has been in force for 3 years or more. The guaranteedsurrender value is 30% of the basic premiums paid excluding the first year’s premium. In case of a single premium policy the guaranteed surrender value is 90% of the single premium paidexcluding any extra premium.Corporation’s policy on surrenders:In practice, the Corporation will pay a Special Surrender Value which is either equal to or morethan the Guaranteed Surrender Value. The benefit payable on surrender reflects the discountedvalue of the reduced claim amount that would be payable on death or at maturity. This value willdepend on the duration for which premiums have been paid and the policy duration at the date of surrender. In some circumstances, in case of early termination of the policy, the surrender valuepayable may be less than the total premium paid.

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3. Bima Bachat

What is Bima Bachat?LIC’sBima Bachat is a money-back policy which offers financial security and assurance to thepolicy holder and his family. Bima Bachat requires the policy holder to pay only one premium.The amount paid for the premium depends on the duration of the policy taken and life insuranceis available till the date of maturity.What other benefits do I receive during the specified duration of the policy? 

For a term of 9 years : The policy holder will receive 15% of the sum assured at the endof every 3rd and 6th policy year.

For a term 12 years : The policy holder will receive 15% of the sum assured at the end of every 3rd, 6th and 9th policy year.

For a term 15 years : The policy holder will receive15% of the sum assured at the end of every 3rd, 6th, 9th and 12th policy year.

What additional benefits do I get upon maturity?If the policy holder outlives the duration of the policy, at the time of maturity,asingle premium payment (excluding extra premium) is made along with loyaltyadditions, if any.

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How much insurance do I get?The policy holder is insured for an amount equal to the sum assured.

What about the installment received already?The insurance cover is irrespective of the installments received.

When am I eligible for the guaranteed surrender value?The guaranteed surrender value is available only after completion of at least one policy year.This value is equal to 90 % of the single premium paid (excluding extra premium).

What other benefits does this insurance cover offer?Bima Bachat is the only money-back policy that offers a loan facility. The rate of interest for thiswill be determined from time to time by the corporation. Presently the rate of interest is 9% p.a.payable half-yearly.It also offers other benefits like the 15 day cooling off period, grace periodand revival.

Who is eligible for the policy? Are there other conditions or restrictions?The following are the requirements that one needs to be aware of before applying for this policy:The person applying for the policy should have completed 15 years and should not be olderthan 66 years. The policy will mature when the person is 75 years old.· There is a choice of three terms to choose from (9, 12 and 15 years) for the policy depending onthe age and requirement of the applicant.· The minimum sum that needs to be assured is Rs 20,000/- and there is no limit on the amountthat can be assured.· It is important to note that the sum assured should be in multiples of Rs 5000/- only.· The policy requires the holder to pay a single premium.

Premium paymentSingle PremiumThe sample premium rates are as under: -Group (Term) Insurance Scheme is at present offered under One Year Renewable Group termassurance plan (OYRGTA). Every year on Annual Renewal date LIC charges the premiumdepending upon the changes in size and age distribution of the age group.

C) Different Schemes:Group (term) Insurance Scheme has a number of varieties. The Scheme may provide for auniform cover to all members of the group or graded covers for different categories of members,cover for all amounts of outstanding housing loans or vehicle advances, or some other benefits(e.g., life cover to supplement pension or PF benefits in case of death). The schemes may haveadd-ons like Double Accident Benefit, Critical Illness Benefit, Disability benefit etc.D) General Features of various Group Insurance Schemes:1. PREMIUM:The premium under such scheme may be wholly paid by the employer or theNodalAgency. However, the scheme may be contributory i.e. the members may alsocontribute.

2. DOUBLE ACCIDENT BENEFIT:

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Double Accident Benefit, i.e. payment of double the sum assured on death duetoaccident (without permanent disability benefit), may be allowed under GroupInsuranceSchemes for an extra premium.3. ELIGIBILITY:For Group Insurance Scheme in lieu of EDLIS the insurability condition is that should be amember of the Provident Fund Scheme of the employer. For other GI Schemes of employer-employee groups the insurability condition is that the member should not be absent on ground of  sickness on the entry date. For all non-employer-employee Group Schemes the basic insurabilitycondition is that the member should be in good health on the date of entry.

4. ADMINISTRATION OF THE SCHEME:At the commencement and thereafter on each Annual Renewal Date, the Group Policy holderwill have to send the entire member's data (and particulars of the new entrants from time to time)to the P & GS unit of LIC. Detailed OYRGTA premium calculation will be made on eachAnnual Renewal Date.

2. Janashree Bima Yojana (JBY)FeaturesThe objective of the scheme is to provide life insurance protection to the rural andurban poorpersons below poverty line and marginally above the poverty line.

ELIGIBILITY:A person who is*Aged between 18 and 59 years.*below or marginally above poverty line*Amember of any of the approved vocation/occupation groupsNODAL AGENCY:A State Government Department which is concerned with the welfare of any suchvocation/occupation group, a Welfare Fund/ Society, Village Panchayat,NGO,Self-Help Group,etc.MINIMUM MEMBERSHIP SIZE:Twenty five.FORMS FOR JANASHREE BIMA YOJANA1. Claim form & discharge receipt under JBY (Annexure A)2. Application for scholarship under Shiksha Sahayog Yojana (Performa A)3. List of students eligible for scholarship under Shiksha Sahayog Yojana (Performa D)4. Certificate of utilization (Performa C)Benefits

 In the events of *Death (other than by accident) of the member, an amount of Rs.30, 000/- ispayable.*death/total permanent disability, due to accident, an amount of Rs.75, 000/-is payable.*Permanent partial disability, due to accident, an amount of Rs.37,500/- is payable.PREMIUM:*The premium under the scheme is Rs.200/-per annum per member. *50% of the premium i.e.Rs.100/- will be contributed by the member and/or Nodal Agency/State Government.*Balance50% will be borne by the Social Security Fund.

APPROVED VOCATION & OCCUPATIONAL GROUPS:A) The group that can be covered are like workers in-

(i) Foodstuffs like khandsari

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(ii) Textile(iii) Manufacture of wood products(iv) Manufacture of paper products(v) Manufacture of leather products(vi) Printing (vii) Rubber and coal products(viii) Chemical products like candle manufacture(ix) Mineral products like earthen toys manufacture(x) Fire cracker's workers(xi)Construction workers(xi) Other related cottage industries to be identified by Nodal Agencies and other groups

asidentified by the Nodal Agency and approved by LIC.

B) The occupational groups are:Beedi workers, Brick Kiln Workers(Jalandhar),Carpenters, Cobblers, Fisherman,Hamals,Handicraft Artisans, Handloom Weavers, Handloom and Khadi Weavers, Lady Tailors, Leatherand Tannery Workers, Papad Workers attached to 'SEWA',Physically Handicapped self-Employed Persons, Primary Milk Producers, Rickshaw Pullers/ Auto Drivers, SafaiKarmacharis, Salt Growers, Tendu Leaf Collectors,Scheme for the Urban Poor, Forest Workers,

 Sericulture, Toddy Tappers, Power loom Workers, Scheme for Women in Remote Rural HillyAreas.PLAN’S NAV The net asset value of different schemes of life insurance Corporation of India forthe insured’sisas follows:NAV TABLE

Jeevan Aadhar Plan (Sec.80DD)Premium paid for LIC’s Jeevan Aadhar Plan (for the maintenance of anhandicapped dependent)is eligible for deduction from the total income to the extent of Rs.50,000and to the extent of Rs.75,000/- where handicapped dependent is suffering from specified severe disability.

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 6) Exemption in respect of commutation of pension under Jeevan Suraksha& Jeevan Nidhi Plans. (Section 10(10A) :A payment received by way of commutation of pension from Jeevan Suraksha &Jeevan NidhiAnnuity plans is exempt from tax.

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ANALYSIS

Strategies SWOT Analysis ReviewSummary

Life Insurance Corporation of India (LIC) a fully owned subsidiary of Government of India is alife insurance company. LIC offers various life plans such as individual plans pension plansspecial plans unit plans group schemes child plans and health insurance plans. Few of the company’s products are Janashree Chennai, Hyderabad, Delhi, Kanpur, Bhopal and Patna. It offers insurance products in India through authorized banks and service providers. LIC operatesthrough its associates in Fiji United Kingdom Mauritius Bahrain Singapore Sri Lanka and Nepal.The company is headquartered in Mumbai India.To develop the business LIC is planning to develop and launch new life insurance products thatsuits customer needs.Global Data’s Life Insurance Corporation of India.Strategies SWOT Analysis Review provides a comprehensive insight into the company’s history corporate strategy business structure and operation. The report contains detailed SWOT analysis information on the company’s keyemployee’s key competitors and major products and services.

 This up-to-the-minute company report will help you to formulate strategies to drive your business by enabling you to understand your partner’s customers and competitors better.

Scope Business Description- A detailed description of the company’s operations and businessdivision

Corporate Strategy- Global Data’s summarization of the company’s business strategy. SWOT Analysis- A detailed analysis of the company’s strengthsweakness opportunitiesand threats.

Company History- Progression of key events associated with the company. Major Products and Services- A list of major products, services and brands of thecompany. Key Competitors- A list of key competitors to the company. Key Employees- A list of the key executives of the company.

 Executive Biographies-A brief summary of the executives’ employment history. Important Location and Subsidiaries- A list of key locations and subsidiaries of thecompany including contact details.

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CHAPTER-5FINDINGS

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FINDINGS

Findings:After completing the study following points can be drawn:1.It has one of the single distribution networks amongst government insurance players.

2.LIC has many numbers of insurance policies and plans having flexible to meet thecustomers’ requirement and expectation. 3.LIC entered the market with aggressive marketing and supported by after sale serviceswith the help of technology.

4.All LIC Plans come with Sovereign Guarantee i.e., Government of India Guaranteeregarding repayment. In fact, as of now, only LIC plans enjoy this Government Guarantee.

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CHAPTER-6CONCLSION

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CONCLUSION

After completing the project it is concluded that LIC develop its various plans and policies,flexible

in nature, according to the requirements of its targeted market or customers and is thusbeneficial to

its customers in various ways. The most important benefit it provides to itscustomers is that it is a

government owned company. This lead to increase in the satisfactionlevel of its customer that is

why LIC has more than200 million policyholders which is equal tothe fourth largest country in

world. Therefore it is not only beneficial but better than otherinsurance companies not only

regarding its product but also its services.

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BIBLIOGRAPHY

Information and data used in the project has been collected from the following sources:-

1.BOOKS:

Kothari, C.R, “Research Methodology”, 3rd edition, 1997, Vikas Publishing HousePvt.ltd.

New Delhi.

Dr. Gupta S.P& Dr. Gupta M.P., Business Statistics by Addition 2004, New Delhi.

H. Narayanan, “Indian INSURANCE A Profile”, 2008. 

Dr. P. K. Gupta,“Insurance and Risk Management”, 2004.

 2, BROUCHERS/ INFORMATION BOOKLETS

The Insurance Regulatory and Development Authority Bill, 1999.

Product list LIC

LIC Annual Report,2011

3. WEBSITES

  w.w.w.liclndia.com( http://www.pagesinventory.com/domain/www.liclndia.com.html)

www.lrdaindia.org.com (http://www.urlidea.com/www/irdaindia.org.html)

www.indiainfoline.com(http://www.indiainfoline.com/Markets/News/PersonalFinance/Insurance)

www.icici.com (http://www.icicibank.com/aboutus/group-comp.html )

www.hdfc.com72(http://www.hdfc.com/corporate_governance/cor_introduction.asp )

www.licmutual.com ( http://www.licnomuramf.com/MarketTradeReport.aspx?opt=10)

www.lichousing.com ( http://www.lichousing.com//lichousing/aboutus/company_profile.asp)

www.wikipedia.org ( http://en.wikipedia.org/wiki/LIC)

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www.reportbuyer.com ( http://www.reportbuyer.com/companies/company_name /l/

life_insurance_corporation_india_strategic_swot_analysis_review.html)

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