Shameer Lic Report

8/6/2019 Shameer Lic Report

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IZEE BUSINESS SCHOOL Page 1

CHAPTER 1

INTRODUCTION

1.1 GENERAL INTRODUCTION OF INSURANCE:


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Insurance or Assurance,device for indemnifying or guaranteeing an individual

against loss. Reimbursement is made from a fund to which many individuals exposedto 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 orproperty, 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 revenue-producing projects,

insurance companies have become major suppliers of capital, and they rank among

the nation's largest institutional investors.

HISTORY OF INSURANCE:

The roots of insurance might be traced to Babylonia, where traders were encouraged

to assume the risks of the caravan trade through loans that were repaid (with interest)

only after the goods had arrived safelya practice resembling bottomry and given

legal force in the Code of Hammurabi (c.2100 B.C.). The Phoenicians and the Greeks

applied a similar system to their seaborne commerce. The Romans used burial clubs

as a form of life insurance, providing funeral expenses for members and later

payments to the survivors.

With the growth of towns and trade in Europe, the medieval guilds undertook to

protect their members from loss by fire and shipwreck, to ransom them from captivity

by pirates, and to provide decent burial and support in sickness and poverty. By the

middle of the 14th cent., as evidenced by the earliest known insurance contract

(Genoa, 1347), marine insurance was practically universal among the maritime

nations of Europe. In London, Lloyd's Coffee House (1688) was a place where

merchants, shipowners, and underwriters met to transact business. By the end of the

18th cent. Lloyd's had progressed into one of the first modern insurance companies. In


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1693 the astronomer Edmond Halley constructed the first mortality table, based on the

statistical laws of mortality and compound interest. The table, corrected (1756) byJoseph Dodson, made it possible to scale the premium rate to age; previously the rate

had been the same for all ages.

aInsurance developed rapidly with the growth of British commerce in the 17th and

18th cent. Prior to the formation of corporations devoted solely to the business of

writing insurance, policies were signed by a number of individuals, each of whom

wrote his name and the amount of risk he was assuming underneath the insurance

proposal, hence the term underwriter. The first stock companies to engage in

insurance were chartered in England in 1720, and in 1735, the first insurance

company in the American colonies was founded at Charleston, S.C. Fire insurance

corporations were formed in New York City (1787) and in Philadelphia (1794). The

Presbyterian Synod of Philadelphia sponsored (1759) the first life insurance

corporation in America, for the benefit of Presbyterian ministers and their dependents.

After 1840, with the decline of religious prejudice against the practice, life insurance

entered a boom period. In the 1830s the practice of classifying risks was begun.

The New York fire of 1835 called attention to the need for adequate reserves to meet

unexpectedly large losses; Massachusetts was the first state to require companies by

law (1837) to maintain such reserves. The great Chicago fire (1871) emphasized the

costly nature of fires in structurally dense modern cities. Reinsurance, whereby losses

are distributed among many companies, was devised to meet such situations and isnow common in other lines of insurance. The Workmen's Compensation Act of 1897

in Britain required employers to insure their employees against industrial accidents.

Public liability insurance, fostered by legislation, made its appearance in the 1880s; it

attained major importance with the advent of the automobile.

In the 19th cent. many friendly or benefit societies were founded to insure the life and

health of their members, and many fraternal orders were created to provide low-cost,

members-only insurance. Fraternal orders continue to provide insurance coverage, as

do most labor organizations. Many employers sponsor group insurance policies for

their employees; such policies generally include not only life insurance, but sickness

and accident benefits and old-age pensions, and the employees usually contribute acertain percentage of the premium.

Since the late 19th cent. there has been a growing tendency for the state to enter the

field of insurance, especially with respect to safeguarding workers against sickness

and disability, either temporary or permanent, destitute old age, and unemployment

(see social security). The U.S. government has also experimented with various types

of crop insurance, a landmark in this field being the Federal Crop Insurance Act of


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It involves a comprehensive analysis of the industry and its market segments. This

section discusses the key developments that have taken place in the industry. It alsoidentifies and analyzes the driving factors and challenges of the industry. A

description of the regulatory structure tells us about the major regulatory bodies, laws

and government policies.

Country Analysis

This section presents the key facts & figures of the country. It also discusses the

political environment and the macroeconomic indicators. It analyzes government

stability and economic growth of the country.

Competitor Assessment

This section compares the major competitors in the industry. The Competitors At-a-

Glance is aimed at giving an overview of the competitive landscape in the industry.

Company ProfilesThe major companies are profiled in this section. For each company, business

description is given followed by financial highlights and recent developments.

Industry Outlook

This section presents the outlook of the industry. The analyst opinion and projections

help us in evaluating the future of the industry. It gives an insight into the investment

opportunities present in the sector.

TYPES OF INSURANCE:

Different types of insurance are used to cover different properties and assets such

as vehicles, home, health care etc. Basically, an insurance policy can also be known as

a protection net which secures you from any financial losses in future.

Health Care Insurance

With such high medical and health care costs these days, its hard to even think about

visiting a doctor. But what about an unexpected mishap or an unforeseen disability or

attack, where the potential medical bills could shoot up to a sky? Where would you

get so much money from?


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These are exactly the situations where you feel you had a security, something which

could come to your rescue and save you from such financial crisis. While some

companies do provide its employees with health insurance, for others, this is a must.

Especially for the aging couples, who have a comparatively more chances of needing

emergency bill money. The health insurance does it all, so that they do not have to

worry for the huge payments at the last minute.

A health insurance can cover all from a routine immunization to a major illness.

Life Insurance

Loss of a family member is a catastrophe which glooms a familys life. But even more

tragic is the death of a sole bread earner for the family, who then has to go through the

pain of losing their loved one, as well as the financial loss putting their survival in

jeopardy.

This financial hardship due to a sudden death of a family member or a disability

resulting to a loss of job or inability to work can be avoided to a great extent by taking

up a life insurance policy.

A Life insurance or disability insurance covers such losses and pays a family,

compensation to restore the earnings lost by them due to a sudden death or disability.

The monthly premiums for a life insurance are generally based upon the age, health,

and occupation information of the applicant, in addition to the total benefits to be paid

to him for his policy.

Home Insurance

Real estate property and hard assets are subject to accidental risks like theft,

destruction due to natural disasters or fire accidents etc. with such huge investments


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A) ORIGIN AND DEVELOPMENT OF THE OF THE INDUSTRY:-

y 1912: The Indian Life Assurance Companies Act came into force forregulating the life insurance business.

y 1928: The Indian Insurance Companies Act was enacted for enabling thegovernment to collect statistical information on both life and non-life

insurance businesses.

y 1938: The earlier legislation consolidated the Insurance Act with the aim ofsafeguarding the interests of the insuring public.

y 1956: 245 Indian and foreign insurers and provident societies were taken overby the central government and they got nationalized. LIC was formed by an

Act of Parliament, viz. LIC Act, 1956. It started off with a capital of Rs. 5

crore and that too from the Government of India.

The history of general insurance business in India can be traced back to Triton

Insurance Company Ltd. (the first general insurance company) which was formed in

the year 1850 in Kolkata by the British.

Important milestones in the Indian general insurance business:-

y 1907: The Indian Mercantile Insurance Ltd. was set up which was the firstcompany of its type to transact all general insurance business.

y 1957: General Insurance Council, an arm of the Insurance Association ofIndia, framed a code of conduct for guaranteeing fair conduct and sound

business patterns.

y 1968: The Insurance Act improved for regulating investments and set minimalsolvency levels and the Tariff Advisory Committee was set up.

y 1972: The General Insurance Business (Nationalization) Act, 1972nationalized the general insurance business in India. It was with effect from

1st January 1973.

107 insurers integrated 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 was incorporated as

a company.


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Insurance companies in India:-

IRDA has till now provided registration to 12 private life insurance companies and 9

general insurance companies. If the existing public sector insurance companies are

considered then there are presently 13 insurance companies in the life side and 13

companies functioning in general insurance business. General Insurance Corporation

has been sanctioned as the "Indian reinsurer" for underwriting only reinsurance

business.

List of Insurance companies in India

LIFE INSURERS Websites

Public Sector

Life Insurance Corporation of India www.licindia.com

Private Sector

Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in

Birla Sun-Life Insurance Company Limited www.birlasunlife.com

HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com

ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com

ING Vysya Life Insurance Company Limited www.ingvysayalife.com

Max New York Life Insurance Co. Limited www.maxnewyorklife.com

MetLife Insurance Company Limited www.metlife.com

Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com

SBI Life Insurance Company Limited www.sbilife.co.in

TATA AIG Life Insurance Company Limited www.tata-aig.com

AMP Sanmar Assurance Company Limited www.ampsanmar.com

Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com

GENERAL INSURERS


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Public Sector

National Insurance Company Limited www.nationalinsuranceindia.com

New India Assurance Company Limited www.niacl.com

Oriental Insurance Company Limited www.orientalinsurance.nic.in

United India Insurance Company Limited www.uiic.co.in

Private Sector

Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in

ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com

IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.inReliance General Insurance Co. Limited www.ril.com

Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com

TATA AIG General Insurance Co. Limited www.tata-aig.com

Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com

Export Credit Guarantee Corporation www.ecgcindia.com

HDFC Chubb General Insurance Co. Ltd.

REINSURER

General Insurance Corporation of India www.gicindia.com

B) GROWTH AND PRESENT STATUS OF THE INDUSTRY:-

The insurance sector was opened up for private participation four years ago. For yearsnow, the private players are active in the liberalized environment. The insurancemarket have witnessed dynamic changes which includes presence of a fairly largenumber of insurers both life and non-life segment. Most of the private insurancecompanies have formed joint venture partnering well recognized foreign players

across the globe.

There are now 29 insurance companies operating in the Indian market 14 private lifeinsurers, nine private non-life insurers and six public sector companies. With manymore joint ventures in the offing, the insurance industry in India today stands at acrossroads as competition intensifies and companies prepare survival strategies in adetariffed scenario.


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There is pressure from both within the country and outside on the Government to

increase the foreign direct investment (FDI) limit from the current 26% to 49%, whichwould help JV partners to bring in funds for expansion.

There are opportunities in the pensions sector where regulations are being framed.Less than 10 % of Indians above the age of 60 receive pensions. The IRDA has issuedthe first licence for a standalone health company in the country as many more playerswait to enter. The health insurance sector has tremendous growth potential, and as itmatures and new players enter, product innovation and enhancement will increase.The deepening of the health database over time will also allow players to develop and

price products for larger segments of society.

State Insurers Continue To Dominate There may be room for many more players in

a large underinsured market like India with a population of over one billion. But thereality is that the intense competition in the last five years has made it difficult fornew entrants to keep pace with the leaders and thereby failing to make any impact inthe market.

Also as the private sector controls over 26.18% of the life insurance market and over26.53% of the non-life market, the public sector companies still call the shots.

The countrys largest life insurer, Life Insurance Corporation of India (LIC), had ashare of 74.82% in new business premium income in November 2005.

Similarly, the four public-sector non-life insurers New India Assurance, National

Insurance, Oriental Insurance and United India Insurance had a combined marketshare of 73.47% as of October 2005. ICICI Prudential Life Insurance Companycontinues to lead the private sector with a 7.26% market share in terms of fresh

premium, whereas ICICI Lombard General Insurance Company is the leader amongthe private non-life players with a 8.11% market share. ICICI Lombard has focusedon growing the market for general insurance products and increasing penetrationwithin existing customers through product innovation and distribution.

Reaching Out To CustomersNo doubt, the customer profile in the insuranceindustry is changing with the introduction of large number of divergent intermediariessuch as brokers, corporate agents, and bancassurance.

The industry now deals with customers who know what they want and when, and aremore demanding in terms of better service and speedier responses. With the industryall set to move to a detariffed regime by 2007, there will be considerableimprovement in customer service levels, product innovation and newer standards ofunderwriting.

Intense Competition In a de-tariffed environment, competition will manifest itself inprices, products, underwriting criteria, innovative sales methods and creditworthiness.


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Insurance companies will vie with each other to capture market share through better

pricing and client segmentation.

The battle has so far been fought in the big urban cities, but in the next few years,increased competition will drive insurers to rural and semi-urban markets.

Global Standards While the world is eyeing India for growth and expansion, Indiancompanies are becoming increasingly world class. Take the case of LIC, which hasset its sight on becoming a major global player following a Rs280-crore investmentfrom the Indian government. The company now operates in Mauritius, Fiji,the UK, Sri Lanka, Nepal and will soon start operations in Saudi Arabia. It also plansto venture into the African and Asia-Pacific regions in 2006.

The year 2005 was a testing phase for the general insurance industry with a series ofcatastrophes hitting the Indian sub-continent.

However, with robust reinsurance programmes in place, insurers have successfullymanaged to tide over the crisis without any adverse impact on their balance sheets.

With life insurance premiums being just 2.5% of GDP and general insurancepremiums being 0.65% of GDP, the opportunities in the Indian market place isimmense. The next five years will be challenging but those that can build scale andmarket share will survive and prosper.


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CHAPTER 2

PROFILE OF THE ORGANISATION


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African insurance market.

The traditional life insurance business for the LIC has been a little more than asavings policy. Term life (where the insurance company pays a predetermined amount

if the policyholder dies within a given time but it pays nothing if the policyholderdoes not die) has accounted for less than 2% of the insurance premium of the LIC(Mitra and Nayak, 2001). For the new life insurance companies, term life policieswould be the main line of business.

Name of the Player Market share (%)

LIFE INSURANCE CORPORATION OF INDIA 82.3


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ICICI PRUDENTIAL 5.63

BIRLA SUN LIFE 2.56

BAJAJ ALLIANZ 2.03

SBI LIFE INSURANCE 1.80

HDFC STANDARD 1.36

TATA AIG 1.29

MAX NEW YARK 0.90

AVIVA 0.79

OM KOTAK MAHINDRA 0.51

ING VYSYA 0.37

MET LIFE 0.21

LIC still holds the 75% of the insurance sector but the upcoming natures of these

private players are enough to give more competition to LIC in the near future. LIC

market share has decreased from 95% (2002-03) to 81 %( 2004-05).

AWARDS:-


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CNBC Awaaz Consumer awards 2010Reader Digest Trusted Brand

Insurance category 2010

OUTLOOK MONEY -- NDTV PROFIT

AWARD 2009 in

" BEST LIFE INSURER CATEGORY

"

World Brand Congress Award

Golden Peacock Innovative Product /

Service Award - 2009

ASIA PACIFIC HRM Congress, 2009

Award for INNOVATIVE HR

PRACTICES


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IZEE I E L P

rat roughl R or a US $ , has grown to 25000 servi ing around 180 million

poli ies and a corpus of over 8 trillion (US$173.6 billion).

The recentEconomic Times Brand Equit Survey rated LIC as the No. 1 Service

Brand ofthe Country.


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3. Publicity Department

CHIEF PUBLIC RELATION OFFICER:-

The Chief Public Relation Officer of LIC is Mr. M. V. Kulkarni. He heads their

department. The above three committees are under the PRO. The PRO irresponsible

for the overall functioning of the PR department. He has to monitor the smooth

functioning of the three departments.

RESPONSIBILITIES OF CHIEF PUBLIC RELATION OFFICER:-

1. PR represents whole organization.

2. Should know how to behave in a certain situation.

3. He is not a person, he is representative.4. Should know how to create enthusiasm.

5. In crisis he has to give feedback as soon as possible.

OBJECTIVES AND FUNCTIONS OF CHIEF PUBLIC RELATION

OFFICER:-

The PRO is directly answerable to the Chairman Shri. T.S. Vijayan. The PRO looks after all the activities of the three departments all over

India.

Also he has to keep in close touch with the over-seas PR departmentsOf LIC.

All the policies implemented in India are informed to other PROs of theOver-seas branches of LIC.

The PRO monitors the norms and values of all the branches. The new rules and regulations in India are informed to the PROs of the

Over-seas branches.

The PRO also holds regular workshops for the top managementemployees to motivate them to lift the spirit of the work culture.

The PRO also has to provide information about latest policies to thecommunication department and ask them to public or air it through various

mediums.


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Since a major share of workload of LIC is in the public sector, the Prophase tolook after social responsibility as well as maintaining the image of thecompany.

COMMUNICATION DEPARTMENT:-

The PRO of this Department is an external PR.He looks after:-

Arranging press conferences, press releases and is in constant contactwith the media.

He is also responsible for monitoring the overseas communications. The Communication Department PRO has to make arrangements for the

guests and their overall honors. The conversations with the guests are directlydone by the Communication department PRO.

The PRO from this department should always keep a close eye on the latesthappenings in the market. Any social issue at any area is news to be workedout for him.

He reports directly to the Chief PRO of the company. The Press conference usually includes the CEO of the company, the Chief

PRO and the Communication department PRO. If the case is of crisis, then only is the Crisis management Dept PRO

Present for the Press conference.

Since LIC is closely related with the Public Sector, the CommunicationDept. PRO has to also be in a close contact with the government officials. He also has to motivate the employees in his department for constant

progress in the strategies for communication.

CRISIS MANAGEMENT DEPARTMENT:-

The PRO in this department is an internal one. From the overall history

ofLIC, it is seen that the company has never been into any major crisis. This itselfis

one of the best achievements.

He is answerable to the Chief Public Relation Officer.

The PRO from crisis management, though is here to handle crisis, he has been

assigned many other internal responsibilities.

Motivating the lower employees, sales executives and sales andmarketing employees.

Building up a smooth communication between the Blue Collar and theWhite Collar.

Arranging small workshops for all the employees.


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He also has to know the issues going within the other departments so thatthese issues are solved before they create crisis.

2.5 ORGANISATIONAL STRUCTURE AND ORGANIZE INSTITUTION

FOR ANY RESEARCH:-


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2.6 PRODUCT AND SERVICE PROFILE OF THE ORGANISATIONAL

COMPETITORS:-

The new private insurer focused on providing customized product -product that

contain innovative feature- to the customers for this the company conducted extensive

market research to figure out what types of products would appeal to consumers .

MAX NEWYORK LIFE INRODUCTION:-Max New York Life Insurance Company is a joint venture between New York Life

International Inc. And Max India Limited. New York Life, a Fortune 100 Company,

is one of the worlds experts in life insurance with over 156 years of experience in thebusiness and over US$ 165 billion (Rs. 775,000 Cores) in assets under management.

Max India Limited is multi-business corporate, focused on the knowledge, people,

and service-oriented business of life insurance. Max New York as a part of its

innovation added life insurance to credit risk insurance, whereby individuals could get

their housing/ vehicle loan insured. Max New York Life also introduces new

endowment policies/ children endowment at the age of 18, 24 &16.The two new

riders were also added to these policies- the payer benefit rider and 5 year term

renewable and convertible rider.

ICICI Prudential Life offered compound interest. It also offered accidentbenefit

and disability benefit riders with a marginally higher premium of Rs. 270 p.a. it also

launched a pension plan ICICI Pru Forever which would provide the policy holder

fixed income after ascertain period of time with additional riders such as critical

illness benefit, major surgical benefit, accident and disability benefit.

Tata AIG came up with whole life policy known as MahaLife, which wouldprovide

life cover for 100 years, with guaranteed annual payment of 5% of the sun assured

each year from the 13th year for the rest of the life. Policy holder needs to pay

premium only for the first 12 years of the policy or until death whichever

came earlier.


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Aviva launched 3 products in early 2002- life long, a whole life flexibleprotection

plan, life saver, premium endowment savings plan, and life bond, a single premium

investment bond. Aviva also offered unitize with profit products (like unit linked

product, under unitize with profit, the premium was split into many units. A part of

the investment return was held that by the insurance co. to offset market fluctuation

during the term of the policy, and the surplus was distributed as terminal benefit).

Birla Sun Life also launched products meant for the rural population in orderto

capture a larger market share. It launched the Birla Sun Life Kavach Yojna, a three-

year single premium insurance cover available in denomination of Rs. 50, 100,

and200, which offered 100 times the amount of premium paid in the event of death of

customer.

HDFC STANDARD LIFE INSURANCEHDFC Standard Life Insurance Co. Ltd. is a joint venture between HDFC, Indias

largest housing finance institution and Standard Life Assurance Company, Europes

largest mutual life company. HDFC manages Rs. 21,450 Corers in assets and

Standard Life manages over US $100 billion in assets. Both the promoters are well

known for their ethical dealings, their financial strength and their commitment to be a

long-term player in the life Insurance industry.

The HDFC Standard Life offered its customers a choice between the base products

(the co. offered two products- the endowment policy and the money back policy) each

of which would be accompanied by four riders (critical illness, accidental death

benefit, waiver of premium and double sum assured),acc. to the requirement of the

customer. HDFC tender life offered 14 prepackaged products from which customer

could choose the one that best suited their need. Also, the customers were allowed to

mix and match the benefit in order to create the most suitable product. The co. also

planned to introduce unit linked product and individual pension product after the

required amendment were made to the insurance.


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.

COPMPETITORS:-

1. Bajaj Allianz Life Insurance Company Limited2. Birla Sun Life Insurance Co. Ltd3. HDFC Standard Life Insurance Co. Ltd4. ICICI Prudential Life Insurance Co. Ltd.5. ING Vysya Life Insurance Company Ltd.6. Life Insurance Corporation of India7. Max New York Life Insurance Co. Ltd8. Met Life India Insurance Company Ltd.9. Kotak Mahindra Old Mutual Life Insurance Limited10. SBI Life Insurance Co. Ltd11. Tata AIG Life Insurance Company Limited12. Reliance Life Insurance Company Limited.13. Aviva Life Insurance Co. India Pvt. Ltd.14. Sahara India Life Insurance Co, Ltd.15. Shriram Life Insurance Co, Ltd.16. Bharti AXA Life Insurance Company Ltd.17. Future Generali Life Insurance Company Ltd.18. IDBI Fortis Life Insurance Company Ltd.

19. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd20. AEGON Religare Life Insurance Company Limited.21. DLF Pramerica Life Insurance Co. Ltd.22. Star Union Dai-ichi Life Insurance Comp. Ltd.


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2.7 MARKET PROFILE OF THE ORGANISATION:-

The policies of LIC covers the age group 0-70 can avail the services of LIC. It means

LIC has very vast market segment, children, youngster, working, married, old people.

INSURANCE PLANS:-

As individuals it is inherent to differ. Each individuals insurance needs and

requirements are different from that of the others. LICs Insurance Plans are policies

that talk to you individually and give you the most suitable options that can fit your

requirement.


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PENSION PLANS:-

Pension Plans are Individual Plans that gaze into your future and foresee financial

stability during your old age. These policies are most suited for senior citizens and

those planning a secure future, so that you never give up on the best things in life.

UNIT PLANS:-

Unit plans are investment plans for those who realize the worth of hard-earned

money. These plans help you see your savings yield rich benefits and help you savetax even if you don't have consistent income.

SPECIAL PLANS:-

LICs Special Plans are not plans but opportunities that knock on your dooronce in a lifetime. These plans are a perfect blend of insurance, investment and aLifetime of happiness!

GROUP SCHEME:-

Group Insurance Scheme is life insurance protection to groups of people. This scheme

is ideal for employers, associations, societies etc. and allows you to enjoy group

benefits at really low costs.

PRODUCTS:

INSURANCE PLAN:-

As individuals it is inherent to differ. Each individuals insurance needs and

requirements are different from that of the others. LICs Insurance Plans are

policies that talk to you individually and give you the most suitable options that

can fit your requirement.


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Endowment Plus

Jeevan Anurag Komal Jeevan

CDA Endowment Vesting At 21Marriage Endowment Or

Educational Annuity PlanCDA Endowment Vesting At 18

Jeevan Kishore Jeevan Chhaya

Child Career Plan Child Future Plan

Child Fortune Plus

Jeevan Aadhar

Jeevan Vishwas

The Endowment Assurance Policy

The Endowment Assurance Policy-Limited Payment

Jeevan Mitra (Double Cover Endowment Plan)

Jeevan Mitra(Triple Cover Endowment Plan)

Jeevan Anand

New Janaraksha Plan


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The Whole Life Policy- Single Premium

Jeevan Anand

Jeevan Tarang

Two Year Temporary Assurance Policy

The Convertible Term Assurance Policy

Anmol Jeevan-I

Amulya Jeevan-I

Jeevan Saathi Plus

Jeevan Saathi

PENSION PLANS:-

Pension Plans are Individual Plans that gaze into your future and foresee

financial stability during your old age. These policies are most suited for senior

citizens and those planning a secure future, so that you never give up on the

best things in life.

Pension Plus

Jeevan Nidhi


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GROUP SCHEME:-

Group Insurance Scheme is life insurance protection to groups of people. This

scheme is ideal for employers, associations, societies etc. and allows you to enjoy

group benefits at really low costs.

Group Term Insurance Schemes

Group Insurance Scheme in Lieu Of EDLI

Group Gr-atuity Scheme

Group Super Annuation Scheme

Group Savings Linked Insurance Scheme

Group Leave Encashment Scheme

Group Mortgage Redemption Assurance Scheme

Group Critical Illness Rider

JanaShree Bima Yojana (JBY)

Shiksha Sahayog Yojana

Aam Admi Bima Yojana

3.1 STUDENTS WORK PROFILE (ROLE AND RESPONSIBILITIES),TOOLS AND TECHNIQUE USED:-


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I am SHAMEER.K.M.Working as an Agent in LIC of India. To meet

this objective as well as fulfill the companys seriousness and importance to the

process, my responsibilities would include:

ROLE:

Policy Advisor Sales Executives Tele caller

RESPONSIBILITIES:

Collecting the information from various sources Explain about insurance policy Collecting customers documents I have to sell insurance policy Motivating and convincing them to take insurance policy We have to clearing doubt of customers Motivating to them for take policy Inform the customers about the fluctuations in Ulip policy Report the customer feedback the senior level manager Giving the information of premium & claim of policy I want to participate company meeting I want to generate lead and customer Coordinating with Manager for sending any e-mails to customer

Contributions to organization:-

I bring three new customers into the company I could explain company profile to customers


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Challenges Faced:-

To meet travelling expenses To convince the customer as some of them didnt have knowledge

about share market.

It was difficult to handle both studies and work Achieve the target

3.2 KEY LEARNINGS:-

Learning Experience From Job:-

I learned about the insurance industry and I gained some knowledge about the Indian economic sector I got some knowledge about Ulip policy & mutual fund

I could understand about the customer behavior

I got some knowledge about marketing

4.1 STATEMENT OF RESEARCH PROBLEM:-

Research is conducted for realizing the trends in insurance sector. Through the belowmentioned questionnaire we are able to understand the customer feedback of Lic.

4.2 STATEMENT OF THE RESEARCOBJECTIVES:-

The report gives the brief background of the sector and proceeds to

highlight the short comings of the existing setup and players. The

benefits of liberalized sector are enumerated. The report also tries

to identify the market potential for insurance products and the


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strategy that can we employed to exploit the same. The stress is

also given on knowing the awareness level of general public.

4.3 RESEARCH DESIGN AND METHODOLOGY:-

RESEARCH DESIGN:-

Basically there are 3 types of approaches used during the any research:

1. Exploratory

2. Descriptive

3. Experimental.

During this research Descriptive and Exploratory approach is taken intoconsideration because of the availability of relevant information to describe the

relationships between the marketing problem and the available information.

RESEARCH METHODOLOGY:-

To conduct the market research first of all it is necessary to create a research design.

A research design is basically a blue print of how a research is to be conducted, it may

include;1. Choosing the approach

2. Determining the types of data needed.3. Locating the source of data.

4. Choosing a method of data.

TYPES OF DATA USED:Both primary and secondary data is used in the research.Data Collection MethodsTo conduct the market research the data is collected by two sources.

SECONDARY DATA:

Secondary data is one which already exists and is collected from the published

sources.

The sources from which secondary data was collected are:


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Newspapers and Magazines like Economic Times, Insurance Times, andInsurance Post.

Internet

PRIMARY DATA:-The primary sources of data refer to the first hand information Primary data is

collected during the survey with the help of Questionnaires.

5.1 ANALYSIS OF THE DATA:-

QUESTIONNAIRE ANALYSIS:-

Respondents =80

Respondents Responded =60

Response Rate =75%

Respondents are taken from private, government and business sectors.

1. According to you, which have played a major role in the field of life insurance

companies?

Insurance Pvt.Employees Govt.Employees Business Man

LIC 10 13 10

HDFC 5 3 5

ICICI 3 3 4

OTHERS 2 1 1


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After analyzing this data it is found that from the given three respective level of

Pvt.Govt. and Business 10 out of 20 (30%), 13 out of 20 (39%) and 10 out of 20

(30%)are in favour of LIC, while 5 out of 20 (15%), 3 out of 20 (9%) and 5 out of 20

(6%),1 out of 20 (30%) and 1 out of 20 (30%) are in favour of other Pvt. Companies.

2. Which insurance companies have been successful to make strong public

base by advertisement?

INSURANCE Pvt.EMPLOYEE Gvt.Employee Business man

LIC 12 14 12HDFC 3 2 4

ICICI 4 3 3OTHER 1 1 1

0

1

2

3

4

5

6

LIC HDFC ICICI OTHER

Pvt.Employees

Gvt.emply

Business man


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3. Which insurance company has gained massive public support in the

current fiscal year?

INSURANCE Pvt.EMPLOYEE Gvt.Employee Business man

LIC 12 14 10

HDFC 3 2 5

ICICI 3 2 4OTHER 2 2 1

0

1

2

3

4

5

6


Pvt Employee

Gvt.Employee

Business man

0

1

2

3

4

5

6


PVT.EMPY

Gvt.Emply

Businessman


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4. Do you think insurance policy is in the direction of public welfare?

Pvt sector Gvt sector Business man

Yes 13 16 12 No 7 4 8

The above table shows that from private sector 13 out of 20 (30%) agree and 7 out

of20 (21%) disagree, from govt. sector 16 out of 20 (48%) think it right but 4 out of

20(12%) dont thick it so and from business man 12 out of 20 (36%) are in favor of

the above statement but 8 out of 20 (24%) dont favor it.

5. Is retirement bond or pension policy launched by the number of private

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

Pvt.sector Gvt.sector Business man

Yes 15 18 13

No 5 2 7

0

2

4

6

8

10

12

14

16

18

Pvt sector Gvt sector

si ess ma

yes

No


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It is obvious from the above table that 15 out of 20 (45%), 18 out of 20 (54%) and 13

out of 20 (39%) from the given three think retirement bend or pension policy a

legitimate step in the direction of secure old age but 5 out 20 (15%), 2 out of 20 (6%)

and 7 out 20 (21%) dont agree with the opinion of the majority class.

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

attracts general public towards the policy?

Pvt.sec Gvt.sec Business man

Yes 12 16 11

No 8 4 9

0

2

4

6

8

10

12

14

16

18

20

Pvt.sector Gvt.sector si ess ma

Yes

o


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It is obvious from the above data that 11 out of 20 (33%), from the Pvt. Sector, 15 out

of 20 (45%) from Govt. sector and 12 out of 20 (36%) think term plan as a security

cover but 9 out of 20 (27%), 5 out of 20 (15%) and 8 out of 20 (24%) from the three

respective group think it as a way of accumulating money insurance company.

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

Insurance sector envisage a lot of choice to policy holder?

Pvt.sec Govt.sec Business man

Yes 16 18 16

No 4 2 4

0

2

4

6

8

10

12

14

Pvt.sec Govt.sec si ess ma

Sec rity cover

Acc

m

lative

o

ey


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Income from investments of LIC was 48244.14 cores which were nearly equalto the total income of the all private insurance companies. By this we canimagine how big the LIC is.

Balance sheet of LIC is seven times bigger than that of private insurancecompanies.

We find that there is a huge gap between them. No doubt that LIC is a wellestablished

player in the field of insurance and many private companies have just started

their

business. Hence it is obvious that LIC is having large number of

policyholders.

Companies have started getting a number of customers. They are growingrapidly.Though LIC is also increasing its customer base but private insuranceAcompanies aremoving at a fast pace.

LIC but then also the pace with which they are increasing their income istremendous. Private insurance companies are expanding their business andwill certainly going to give a tough competition to LIC in the coming days.

Share of 73.9 % which was 87.3% five years earlier. We see that privateinsurance

Companies are penetrating in the customer base of LIC.

Overall we can see that private insurance companies are giving a toughcompetition to the LIC and will certainly create a good business for

themselves

in the coming days.

Companies who have reported loss in this and previous years. This is the mainreason

why private insurance companies lag behind LIC in case of business per

branch.

There is a big difference between them.

Customer base of LIC is very strong. In issuing new policies per branch also,they are

ahead of private insurance companies though not by very large margin.


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Customer base of LIC is very strong and still business per branch, profit perbranch or premium per branch, they are leading much ahead of private

insurance companies.

Private insurance companies are far ahead in this matter. LIC has just resolved25%cases in the last five years while private insurance companies have

resolved nearly70% cases. This is a matter from where customer shift starts.

We have seen the rapid increase in customer base of private insurance

companies which can be very much affected by this factor.

Overall we have seen that still LIC is very famous but private insurancecompanies are growing at exceptionally fast pace. Private companies show

due concern in grievance management and brings innovative schemes to

attract the customers. Right now they are giving good competition to LIC and

very soon they will give very tough competition to Life Corporation of India.

6.1 Summery of learning experience:-

I am SHAMEER.K.M, MBA student of Gauhati University (2009-

2011 batch). As a MBA student I have learnt that, without practical knowledge the


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BIBILOGRAPHY:-

BROCHURES / INFORMATION BOOKLETS:-

Product List L.I.C.

L.I.C. Annual Report, 2006


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Shameer Lic Report

Documents