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-9144000 Project On Life Insurance corporation of India Submitted By Gaurav Kumar Gupta P.G.D.M First Semester School Of Management Science Lucknow PREFACE The field of insurance has taken a giant leap at the threshold of twentieth century. Insurance have become an integral part of life of man all over the globe. The proverb ‘Need is the mother of invention’ is proving equally correct in case of insurance Insurance have already had a considerable impact on many aspects of our society. This project on “life Insurance corporation of India” deals with the automation of various activities done in insurance like how the insurance companies doing there business and what is the feature of life insurance. ACKNOWLEDGEMENT We are hearty grateful to Mr. Sudhir Sharan sir (director). They have always been an invaluable source of inspiration had work, sincerity and dedication. It gives me immense pleasure in submitting this project on “Life Insurance Corporation of India”. I have developed this project in partial fulfillment of P.G.D.M (I Sem) from ‘”SCHOOL OF MANAGEMENT SCIENCE LUCKNOW” I would like to express my sincere ineptness to my Project Guide SHUBHENDRA SINGH PARIHAR for his constant guidance and valuable support during the project work. Encouragement and excellent guidance in the successful completion of the project work. And of course nothing could have come true without the support of my family, friends and all the classmates for their constant encouragement and useful tips through out my project. I will always grateful to them. Gaurav Kumar Gupta CONTENTS Topics Company Profile Objective of Study Introduction of Topic Brief Overview of Other Insurance Industry Research Methodology Conclusion & Suggestions Bibliography Annexure INTRODUCTION ABOUT THE ORGANIZATION 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 natioalism. the Swadeshi movement of 1905-1907 gavwe 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. 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 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at the time of nationalization, nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost. LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter, re-organization of LIC took place and large numbers of new branch offices were opened. As a result of 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. 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 theliberalized 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 ha 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. 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. 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 allinsurable 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. MISSION/VISION Mission “Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development.” Vision “A trans-nationally competitive financial conglomerate of significance to societies and Pride of India.” LIC of India is the one and only public sector life insurance Company in India. 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 nationalised. 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. Nationalization In 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by owner's of private insurance companies. In the ensuing investigations, one of India's wealthiest businessmen, Ram Kishan Dalmia, owner of the Times of India newspaper, was sent to prison for two months. Eventually, the Parliament of India passed the Life Insurance of India Act on 1956-06-19, and the Life Insurance Corporation of India was created on 1956-09-01, by consolidating the life insurance business of 245 private life insurers and other entities offering life insurance services. Nationalization of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which had created a policy framework for extending state control over at least seventeen sectors of the economy, including the life insurance. The company began operations with 5 zonal offices, 33 divisional offices and 212 branch offices. 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) 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$ denomimated 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. 2.INTRODUCTION OF ABOUT TOPIC Claim Policy Claims of policy argue that certain conditions should exist and advocate adoption of policies or courses of action because problems have arisen that call for a solution Claim Policy & Instructions In the unfortunate event of an arrival problem, Vanguard has formulated a set of required guidelines to document and present claims. Failure to follow these guidelines will make the claim for buyer's risk. Please note Vanguard's claim policy is for everything over five (5) percent buyer's risk. Vanguard does not believe these guidelines to be in anyway arbitrary or unfair. They are simply to enable us to present substantial and consistent documentation to our growers and suppliers, as well as to ensure Vanguard complies with all necessary regulations. Past experience shows that almost all claims lack one or more of the requirements outlined below. Our experience also shows that claims that are substantiated with all of the requirements outlined below stand a much better chance of being solved quickly and fairly. Kindly fulfill all of these requirements when reporting a claim: OBJECTIVE AND SUBJECTIVE CLAIMS An objective claim is a statement about a factual matter-one that can be proved true or false. For factual matters there exist widely recognized criteria and methods to determine whether a claim is true or false. A subjective claim, on the other hand, is not a factual matter; it is an expression of belief, opinion, or personal preference. A subjective claim cannot be proved right or wrong by any generally accepted criteria. Objective claims & factsAn objective claim may be true or false; just because something is objective does not mean it is true. The following are objective claims because they concern factual matters, that is, matters that can be verified as true or false: Taipei 101 is the world's tallest building.Five plus four equals ten.There are nine planets in our solar system. Now, the first statement of fact is true (as of this writing); the other two are false. It is possible to verify the height of buildings and determine that Taipei 101 tops them all. It is possible to devise an experiment to demonstrate that five plus four does not equal ten or to use established criteria to determine whether Pluto is a planet. Facts previously considered true may come to be considered false if new criteria, methods, or technology emerge. For example, the definition of planet was recently revised. Experts agreed that Pluto did not conform to the new accepted criteria. At that point, the statement, quot;
There are nine planets in our solar systemquot;
became false. Even if a factual statement is demonstrably false, it remains an objective claim on a factual matter. A statement is a factual matter even if you can only imagine a method by which it might be verified. For example, suppose I claim that humanoid life exists on planets outside our galaxy. I can imagine methods that could be used to determine whether this is true, even if I cannot carry them out–send a faster-than-light spaceship to look, perhaps. However, when I imagine methods I may not indulge in pure fantasy; I must use widely recognized criteria. If the consensus is that faster–than–light travel is impossible, then my imagined test using a faster-than-light ship fails to meet generally recognized criteria. I would have to propose another way to test my claim, using acceptable criteria. Whether you disbelieve or disagree with my claim, it is an objective claim; either there is or there is not humanoid life outside our galaxy, independently of whether or not either of us believes it. Subjective claims & opinionsIn contrast to objective claims, subjective claims cannot be proved true or false by any generally accepted criteria. Subjective claims often express opinions, preferences, values, feelings, and judgments. Even though they may involve facts, they do not make factual (provable) claims, and therefore they are, in a sense, neither true nor false in the same way an objective claim is true or false. They are outside the realm of what is verifiable. For example, consider the following subjective claims: Trout tastes better than catfish.Touching a spider is scary.Venus Williams is the greatest athlete of this decade.Hamsters make the best pets. Claim’s Settlement’s History MUMBAI: The percentage of rejected claims to total claims is much higher for private life insurance companies compared with state-owned Life Insurance Corporation (LIC). According to data released by the Insurance Regulatory and Development Authority (IRDA), private life insurers received 13,139 individual death claims in 2006-07 compared with 6.02 lakh claims recorded by LIC. Of the total number of claims received, private life insurance companies settled 72.7% of the claims, while LIC managed to settle 96.94% of claims. The number of claims rejected by private insurers as a percentage of claims booked was 13.98% in 2006-07, while the claims rejected by LIC were 1.43%. Claims pending with private insurers as on March 31, 2007 stood at 13.32% of total claims received against 1.63% for LIC. LIC paid Rs 4289.28 crore as death claim benefits against Rs 155.46 crore paid by private life insurers. Life insurers receive two types of claim, the first are the maturity claims where the policyholder gets the savings that accrue under his policy at the end of the term. Bulk of the claims comes under this category, and usually there is no dispute on maturity claims, as these payments are akin to repayment of a maturing bond. The second set of claims, which are far fewer, are death claims. Section 45 IA of the Insurance Act 1938 allows insurers to reject claims if there is suppression of material fact by the insured. In life insurance, any information that has bearing on the mortality of the proposer is considered to be a material fact. So, if a proposer suffers from a serious ailment which is not disclosed, the insurer can reject his claims. However, the Supreme Court has said that the clause cannot be used unilaterally and it is for the insurer to establish that the non-disclosure has a bearing on mortality. In the first few years of operations, private life insurers did not have much of a claims experience. Therefore, a comparison on claims servicing between the private sector and LIC was not possible. Now, with the private life industry being in its seventh year, there has been a substantial number of maturity and death claims. According to an official with a private life insurance company, repudiations were higher in group policies. Also, given that private companies have been only a few years in existence, their share of early claims are higher. Early claims are those which occur within two years of the policyholder acquiring a policy. In such claims, insurers double check on whether the terms of the policy have been strictly met. Another aspect of claims Admission Of Age: Age is the main basis of calculation of premium under life insurance policies. The following are accepted as evidence of age: Certified extract from Municipal or Local Body’s records made at the time of birth. Certificate of Baptism or Certified Extract from Family Bible, if it contains age or date of birth. Certified Extract from School or College records, if age or date of birth is stated therein. Certified Extract from Service Register in the case of Govt. employees and employees of Quasi-Govt. Institutions or Passport issued by the Passport Authorities in India. Payment of Premium: By cash, local cheque (subject to realization of cheque), Demand Draft at Branch Office. The DD and cheques or Money Order may be sent by post. You can pay your premiums at any of our Branches as 99% of our Branches are networked. Many Banks do accept standing instructions to remit the premiums. So by providing a standing instruction to your Bank to debit your account for the premium amount and send it vide a banker’s cheque to LIC, on the due dates and months mentioned on your policy bond. Through Internet : Payment of premiums can be made through Internet through Service Providers viz.HDFC Bank, ICICI Bank, Times of Money, Bill Junction, UTI Bank, Bank of Punjab, Citibank, Corporation Bank, Federal Bank and BillDesk. Premium payment can also be made through ATMs of Corporation Bank and UTI Bank. Premium payment can also be made through Electronic Clearing Service (ECS) which has been launched at Mumbai, Hyderabad, Chennai, Kolkata, New Delhi, Kanpur, Bangalore, Vijay Wada, Patna, Jaipur, Chandigarh, Trivandrum, Ahmedabad, Pune, Goa and Nagpur, Secunderabad & Visakhapatnam. A policyholder having an account in any Bank which is a Member of the local Clearing House can opt for ECS debit to pay premiums. The policyholders wishing to use this system would have to fill up a Mandate Form available at our Branches/DO and get it certified by the Bank. The certified Mandate Forms are to be submitted to our BO/DO. Policy can be anywhere in India. Citibank Kiosks at Industrial Assurance Building, Churchgate, New India Building, Santacruz, Jeevan Shikha Building, Borivili are dedicated for collection of premiums through cheques. Days Of Grace: Policyholder should pay the premiums on due dates. However, a grace period of one month but not less than 30 days will be allowed for payment of yearly/half-yearly/quarterly premiums and 15 days for monthly premiums. When the days of grace expire on a Sunday or a public holiday, the premium may be paid on the following working day to keep the policy in force. If the premium is not paid before the expiry of the days of grace, the policy lapses. Revival of Lapsed Policy: If the policy has lapsed, it can be revived during the life time of the life assured, within a period of five years from the date of the first unpaid premium but before the date of maturity subject to certain conditions. The Corporation offers three convenient schemes of revival viz., Ordinary Revival, Special Revival and Installment Revival. Policies can also be revived under Loan-cum-Revival and SB-cum-Revival schemes. Request for revival may be made to the Branch Office servicing the policy. Change of Address and Transfer Of Policy Records: The policyholder should immediately intimate the change of his/her address to the Branch Office servicing the policy. The correct address facilitates better service and quicker settlement of claims. Policy records can also be transferred from one Branch Office to another for servicing, as requested by the policyholder. Loss of Policy Document: The Policy Document is an evidence of the contract between the Insurer and the Insured. Hence the policyholder should preserve the Policy Bond till the contracted amount under it is settled. Loss of the Policy Document should be immediately intimated to the Branch Office where it is serviced. Loans: Loans are granted on policies to the extent of 90% of Surrender Value of the policies which are in force and 85% of the Surrender Value in case of policies which are paid-up, inclusive of the cash value of bonus. The rate of interest charged at present is 9% p.a. payable half-yearly. Loans are not granted for a period shorter than six months. The Conditions and Privileges printed on the back of the Policy Bond states whether a particular policy is with or without the loan facility. Relief to Policyholders: The Corporation generally allows concessions on payment of premiums, settlement of claims, issue of duplicate policies, etc when the policyholder are affected by natural calamities such as droughts, cyclones, floods, earthquakes, etc. Nomination: Nomination is a right conferred on the holder of a Policy of Life Assurance on his own life to appoint a person/s to receive policy moneys in the event of the policy becoming a claim by the assured’s death. The Nominee does not get any other benefit except to receive the policy moneys on the death of the Life Assured. Survival Benefit/Maturity Claims: LIC settles survival benefit/maturity claims on or before the due date. Policyholder are intimated well in advance by the Branch Office which services the policy regarding the payment, and the necessary Discharge Voucher is also sent for execution by the assured. In case the policyholder does not get any intimation from the Branch Office concerned, he/she should contact them, quoting the Policy Number. Survival Benefit payment up to Rs.60,000/- are settled without insisting for Policy Bond and Discharge Voucher. Death Claims: If the life assured dies during the term of the policy, death claim arises. The death of the policyholder should be immediately intimated in writing to the Branch Office where the policy is serviced along with the following particulars: The No./s of the policy/ies The name of the policyholder Death Certificate issued by concerned Authority The date of death The cause of death and Claimant’s relationship with the deceased On receipt of the intimation of death, necessary claim forms are sent by the Branch Office for completion along with instructions regarding the procedure to be followed by the claimant. The claims which have arisen after a period of three years are treated as non-early claims and settled within 30 days from the date of receipt of all requirements. The claims that have arisen within a period of two years from the date of commencement of the policy, are treated as early claims and investigation is compulsory in such cases. The claim is usually payable to the nominee/assignee or the legal heirs, as the case may be. However, if the deceased policyholder has not nominated/assigned the policy or if he/she has not made a suitable provision regarding the policy moneys by way of a Will, the claim is payable to the holder of a Succession Certificate or some such evidence of title from a Court of Law. The Corporation grants claims concessions under certain Plans whereby payment of full sum assured is made, subject to the deduction of unpaid premiums with interest till the date of death and unpaid premiums falling due before the next anniversary of the policy, in the event of the death of the life Assured within a period of six months or one year from the date of the first unpaid premium, provided premiums have been paid for at least three years and five years respectively. Claim Review Committee: The Corporation settles a large number of Death Claims every year. Only in case of fraudulent suppression of material information is the liability repudiated. This is to ensure that claims are not paid to fraudulent persons at the cost of honest policyholders. The number of Death Claims repudiated is, however, very small. Even in these cases, an opportunity is given to the claimant to make a representation for consideration by the Review Committees of the Zonal office and the Central Office. As a result of such review, depending on the merits of each case, appropriate decisions are taken. The Claims Review Committees of the Central and Zonal Offices have among their Members, a retired High Court/District Court Judge. This has helped providing transparency and confidence in our operations and has resulted in greater satisfaction among claimants, policyholders and public. COMPETITORS OF LIC Aviva Bajaj Allianz Birla sun life ICICI Pru Ing vysya Life insurance corporation Max new York life MetLife India Om kotak mahindra Reliance life insurance SBI life insurance Tata AIG AVIVA The AVIVA Life Insurance Company is joint venture between Dabur India and the Aviva UK. Dabur is one of the India’s oldest and largest groups of companies with consolidated Annual turnover in excess of Rs 1,350 crores, country’s leading producer of traditional Healthcare products. Aviva Plc is UK’s largest and the world’s fifth largest insurance group. It is one of the leading providers of life & pension products to Europe and has substantial business elsewhere around the world. Bajaj Allianz Bajaj Allianz Life Insurance co. Ltd. Is a joint venture between Allianz AG, and Bajaj Auto, one of the biggest 2 & 3 wheeler manufacturer in the world? Bajaj Auto Ltd, the Flagship Company of the Rs.8000 crores Bajaj group is the largest manufacturer of two-wheelers and three-wheelers in India and one of the largest in the world. Allianz Allianz group is insurers and financial service providers. Founded in 1890 in Berlin, Allianz is now present in over 70 countries with almost 174,000 employees. At the top of the holding company, Allianz AG, with its head office in Munich. Birla sun life insurance company Limited Birla sun Life Insurance is the coming together of the Aditya Birla group & Sun Life Financial of Canada to enter the Indian insurance sector. The Aditya Birla Group, a multinational conglomerate has over 75 business units in India and Overseas with operations in Canada, US, UK, Thailand, Indonesia, Philippines, Malaysia, and Egypt Foreign partner: Sun life assurance, sun life financials primary insurance business, has excellent rating with the world’s top rating agencies. With assets under management as on September 30, 2000 totaling more than CDN billion, it ranks amongst the largest international financial service organizations in the world. ICICI Prudential Life Insurance ICICI Prudential Life insurance is a joint venture between the ICICI group and Prudential Plc, of the UK. ICICI standard off its operation in 1955 with providing finance for industrial development, and since then it has diversified into housing finance, consumer finance, mutual funds to being a Universal Bank and its latest venture Life insurance. Foreign Partner Established in 1848, Prudential plc. Of U.K has grown to be the largest life insurance and mutual fund Company in U.K. Prudential plc. Has had its presence in Asia for the past 75 years catering to over 1 million customers across 11 Asian countries. Prudential is the largest Life Insurance Company in the United Kingdom. ICICI and prudential came together in 1993 to provide mutual fund product in India and today are the largest private sector mutual fund company in India. Their largest venture ICICI Prudential Life plans to take care of the insurance needs at various stages of life. ING Vysya ING Vysya Life Insurance Company private Limited entered the private life insurance industry in India in September 2001, and in a short spans pf 3 years has established itself as a distinctive Life insurance brand with an innovative, attractive and customer friendly product portfolio and a professional advisor force. It also distributes products in close cooperation with the ING Vysya Bank network. The company is headquartered at Bangalore MAX NEW YORK Limited Max India Limited is a multi-business corporation that has business interest in telecom service. Bulk pharmaceuticals, electronic components and specialty products. It is also the service-oriented businesses of healthcare, life insurance and information technology. NEW YORK Life New York Life has grown to be a fortune 100 company and an expert in life insurance. It was the first insurance company to offer cash dividends to policy owners. In 1894, New York Life pioneered then unheard-of-concept of insuring women at the same rate as men. Thereafter, it continued to introduce a series of firsts – a disability benefit clause in 1920, unemployment insurance in 1992 and complete customer care of the web in 1998. Today New York Life has over US billion in assets under management and over 30,000 agents and employees worldwide. The October 2000 fortune survey named New York Life amongst the top three most admired life and health insurance companies worldwide. With over 3 million policyholders, New York Life is a leading provider of insurance in a host of countries worldwide. METLIFE INDIA MetLife India was incorporated as a joint venture between MetLife International Holdings Inc., Jammu & Kashmir Bank, M Pallonji & Co and other private investors. MetLife India is headquartered in Bangalore with offices and presence in major Indian cities, and an additional 1000 outreach points through its channel partner. Life insurance Corporation of India (LIC) The Life insurance Corporation was established about 44 years ago with a view to provide an insurance cover against various risks in life. A monolith then, the corporation, enjoyed a monopoly status and become synonymous with life insurance. Its main asset is its staff strength of 1.24 lakhs employed and 2,048 branches and over six-lakhs agency force. LIC has hundred divisional offices and has established extensive training facility at all levels. At the apex, is the Management Development Institute, seven zonal Training Centre and 35 sales Training Centers. At the industry level, along with the Government and the GIC, it has helped establish the National Insurance Academy. It presently transacts individual Life Insurance business, group Insurance business, social security schemes and Pensions, grants housing loans through its subsidiary. And the markets savings and Investment products through its mutual fund. It pays off about Rs 6,000 crores annually to5.6 million policyholders Om kotak mahindra life insurance Established in 1985 as Kotak capital management finance promoted by Uday kotak the company has come a long way since its entry into corporate finance. It has dabbled in leasing, auto finance, hire purchase, investment banking, consumer finance, broking etc. The company got its name kotak mahindra as industrialists Harish and Anand Mahindra picked a stake in the company. Kotak Mahindra is today one of India’s leading Financial institute. OLD Mutual:- Old mutual plc is an international financial service group in London with expanding operations in life assurance, asset management, banking and general insurance. OLD Mutual is listed on the London Stock Exchange and also on the south-African, Namibian, Malaawi, and Zimbabwe stock exchanges. It has 156 years of experience in life insurance business. OM Kotak Mahindra:- OM Kotak Mahindra is the coming together of Kotak Mahindra Finance Ltd .and Old Mutual plc to enter the Indian insurance arena to offer a wide rang of innovative life insurance products. Reliance Life Insurance:- Reliance Life Insurance Company Ltd is a part of Reliance Capital Ltd. of the Reliance – Anil Dhirubhai Ambani Group. Reliance Capital is one of India’s leading private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. Reliance capital has interests in asset management and mutual funds, stock broking, life and general insurance, proprietary investments, private equity and other activities in financial services. Reliance Capital Ltd is a Non-Banking Financial company (NBFT) registered with the Reserve Bank of India act under section 45-1A. Reliance Capital sees immense Potential in the rapidly growing financial service sector in India and aims to become a dominant player in this Industry and offer fully integrated financial services. Reliance Life Insurance is another step forward for Reliance Capital Ltd to offer need based Life Insurance solution to individual and corporate. SBI Life Insurance:- SBI Life Insurance Company Ltd is a joint venture between India’s largest banks, State Bank of India and Cardiff S.A. a leading Life Insurance Company in France. State bank of India is a household name, and it stands as the last world for financial strength and security in the country. SBI’s illus tries background dates back to the year 1806 when it started business, as a Presidency Bank, known as Bank of Bengal. Over the long journey, it has learnt to combine the best of banking practices handed down from the imperial management with the more Dynamic ways of doing banking in the modern India. It has grown as a responsible giant in the banking field over the years. Cardiff came into being in the year 1973. Since then it has grown into a vibrant insurance company. Specializing in personal lines such as long-term saving, protection products and creditor insurance. Cardiff had a premium income of over US$ 4 billion in 1999. And more than US$ 23 billion of funds under its management. Cardiff has been specializing in the art of selling insurance products through Commercial bank in France and 23 other countries. SBI Life Insurance Company Ltd is registered as a life Insurance Company with the Insurance Regulatory & Development Authority of India and has been issued License number 111 on 29th March 2001. The Company’s authorized capital is Rs. 250 crores, and the paid up capital at present is Rs.125 crores. SBI owns 74%of the total equity, and Cardiff the balance 26%. TATA AIG:- The TATA AIG joint venture is a tie up between the established Tata Group and American International Group Inc. The TATA Group is one of the largest and most respected industrial houses in the country, while AIG is a leading US based insurance and financial service company with a presence in over 130 countries and jurisdiction around the world. OBJECTIVE OF STUDY The prime objective of the study is to find out the level of satisfaction of a customer (policy holders or beneficiary) so far as the settlement of claims. To find out the procedure of claim policy holder or the beneficiary. Parameters of Research Product range offered. Service quality. Network Benefit offered to customer’s 5. RESEARCH METHODOLOGY TYPE OF RESEARCH - Exploratory research conclusive primary data : through observation as well as personal interview secondary data : through journal, research paper, monthly reports and financial reports SAMPLING METHOD- through judgment and convenience method SAMPLING UNIT, LIC BAREILLY SAMPLING ELEMENTS – Existing and potential customers in bareilly SAMPLE SIZE- 80 DATA COLLECTION AND METHODOLOGY The task of data collection begins after a research problem has been defined and research design is chalked out. While deciding about the method of data collection to be used for the study; the researchers should keep in mind two types of data i.e. Primary and Secondary data. The primary data are those which are collected afresh and for the first time, and thus happen to be original in character. The secondary data on other hand are those which have already been collected by someone else and which have already been passed through the statistical process. The data used for the present research is primary data. Data collection was done through sample, survey method involving the questionnaire to be filled in by the investigator. This was chosen because most of the facts and data where of the nature of primary data. For study like this time framework is not significant. However, for cross sectional analysis, both the insurance and customers were interviewed to find out real state of the affairs of the problem understudy. We had been close to the data obtaining through questionnaire and percentage as well as trend analysis have used to interpret the data. Over all study is based on the findings through survey of 100 persons belonging to varied age groups, as follows: Age groups no. of customers 18-2621 26-3533 35-4534 45-5506 Above 55 06 Total 100 The different methods that are used for collecting primary data are as follows: A) Contact Method: The 'contact method ' considering the short coming was selected to personal interview. This method being versatile was arranged interviewing as it made concerned approach to the respondent. B) Observation Method: The present investigation was done on the basis of making note of behavior and gestures of the target customers C) Questionnaire Method: The method of data collection is quite popular and is being adopted by researchers, private individuals and organization. D) Schedule Method: The method of data collection is very much like the collection of data through questionnaire, with little difference which lies in the fact that schedules are being filled in by the enumerates who are specially appointed for the purpose, these enumerators go to the respondents along with the schedule and put up the question. Inferences are drawn on the answers given by them. Finding Product offered to customer Children's Policy Komal Jeevan - Plan No. 159Children Deferred - Plan no.41Jeevan Kishore - Plan no.102Jeevan Chhaya - Plan no.103Marriage Endowment/Educational Annuity - Plan No. 90 Jeevan Anurag - Plan no.168 Endowment PolicyEndowment with Profits - Plan no.14 Limited Payment Endowment with Profits - Plan no.48 Jeevan Mitra - Plan no.88New JanaRaksha Policy - Plan no.91 Jeevan Anand Plan no. 149 Jeevan Mitra Triple Cover - Plan no.133 Group Insurance Policy Janashree Bima Yojana Group Insurance Scheme in lieu of EDLI Group (Term) Insurance Scheme Group Savings Linked Insurance Scheme Group Superannuation Scheme Group Mortgage Redemption Assurance Scheme Joint Life Policy Jeevan Saathi - Plan no.89 Money Back Policy Money Back with Profit - Plan no.75 New Money Back - Plan no.93 Jeevan Surabhi 15 yrs - Plan no.106 Jeevan Surabhi 20 yrs - Plan no.107 Jeevan Surabhi 25 yrs - Plan no.108 Jeevan Bharati Plan No 160 Jeevan Samriddhi Plan No 154, 155, 156 157 Bima Bachat- Plan no.175 Pension Plans or AnnuitiesNew Jeevan Dhara - Plan no.148 New Jeevan Suraksha Plan no. 147 Jeevan Akshay II Plan no. 163 Jeevan Nidhi Plan no. 169Jeevan Akshay V Plan no. 183 Special Plans Term Assurance - Plan no.43 Mortgage Redemption - Plan no.52 Jeevan Aadhar - Plan no.114 Market Plus - Plan No 181 Jeevan Vishwas Plan No. 136 Jeevan Saral Plan No. 165 Jeevan Pramukh Plan No. 167 Bima Nivesh 2005 Plan No 171 Money Plus-Plan No 180 Term Policy Convertible Term Assurance - Plan no.58 New Bima Kiran Term Assurance Anmol Jeevan I Plan No- 164 Amulya Jeevan-Plan No-177 Service Quality Your Policy Bond And Its SafetyYour Policy NumberPolicy ConditionsAlterations In PolicyIf Your Policy Is LostYour Contact Address – Keep Us Posted Without FailAdmission Of AgeNominationAssignmentWhen To Pay The PremiumsGrace Period For Premium PaymentHow And Where To Pay The PremiumsPolicy Status – Where AvailableRevival Of Lapsed PoliciesAvailing Loans On PoliciesSurrender ValueMaturity, Survival Benefits, Disability And Death ClaimsPolicies Under Salary Savings Scheme Helpline Your Policy Bond and Its Safety The policy bond is the document that is given to you after we accept your proposal for insurance. The risk coverage commences after acceptance of your proposal and the conditions and privileges of your policy are mentioned in the policy bond.This is an important document which would be referred to for various servicing interactions with you – Keep the policy bond safe. It will be required at the time of settlement of claims on the policy. You will also require it if you are availing a loan or want to assign the policy. Inform your spouse/Parents/Children as to where the policy is kept. In case you are handing over the policy bond to any person or office, please take a written acknowledgement. Keep a Photostat copy of the policy for your reference.Your Policy Number The policy number is consisting of nine digits and can be found at the top left hand corner of the schedule of your policy bond.This is a unique identification number that distinguishes your policies from other policies and will remain unchanged throughout the lifetime of the policy.Remember to quote the policy number every time in your correspondence, as it helps us to locate your records for reference.Policy Conditions Every policy is taken for different types of needs; therefore the conditions for your policy will vary according to the Plan and Term of the policy. The policy schedule contains on the first page of your policy, like the ones mentioned above as well as other information like nominee, your address etc. It also shows the date of commencement of your policy, date of birth, date of maturity, due dates and months in which the renewal premiums are to be paid etc. The second page onwards carries the various policy conditions like risk coverage, additional risks coverage if opted for, standard benefits that are available for all policies, accident benefit if opted for, exclusion of risks if any and other conditions that govern the contract of insurance. Apart from death benefits there are other standard benefits and benefits opted by the policyholder Alterations In Policy There may be instances when you would like to make alterations in your policy like change of premium payment mode, reduction in premium paying term etc. your applications may be given in writing to the branch that services your policy for our further action. If Your Policy Is Lost Kindly make a thorough search before concluding that you have lost the policy bond. Look for the same within your residence, among your investment papers, at your office and even with your agent to whom you might have entrusted the document for some reason.It could have been even pledged with LIC/any other financial institution for availing a loan by you. LIC retains the policy bond when you go in for a loan against the policy. Make sure that the document you are searching is not one that has already been assigned to LIC, or to another financial institution.If the policy bond is partially destroyed due to natural causes like, fire, flood, etc, the remaining portion may be returned as evidence of loss of policy to LIC, while applying for a duplicate policy.In case you are sure that the policy bond is untraceable due to unknown causes, there is a simple procedure to comply with while applying for the duplicate policy at the branch that services your policy Your Contact Address – Keep Us Posted without Fail Your address is very important for us. Without your latest address we would not be in a position to contact you for any service offering. We would not like to keep any benefit that is due to you pending for want of this very important information. Whenever you shift residences, please inform the new address to us. Otherwise any communication we send to you, like premium notices, discharge vouchers for maturity and survival benefits etc., will get delayed in reaching you. LIC provides for change of addresses, inclusion of telephone numbers, mobile numbers and email addresses in your contact addresses information. Kindly inform your servicing branch to incorporate the same in your policy records. Admission of Age Check your policy bond and see if your date of birth is correctly given therein. This is one of the factors on which the premiums you pay for your policy is arrived at. This would also form the basis of all future policies you might avail from us.In case your earlier policies do not have your date of birth incorporated and you do have a date of birth certificate issued by the competent authority, you may send an attested copy of the same to us, with a request to admit your age (Click here to find out the certificates of age that LIC accepts.)Nomination Ensure that the nominees name is correctly incorporated in the policy bond. You may change the nomination in your policy any time during the lifetime of the policy In case you have not included the name of the nominee till now, please do not delay; inform us your nomination immediately. Kindly note that the change of nomination has to be done in the branch that services your policy. The nominee is the person to whom the insurance claim amounts would be payable, in case anything unfortunate within the purview of the policy conditions happens to you. The policy is usually taken by you to benefit your family – nominate the persons who’ll have the welfare of your family in your absence; the usual preferences being spouse and children.You may nominate even minors like your children, in which case you have to name another person who’ll have the welfare of the minor children, as an appointeeAssignment In case you are raising a loan against your policy from LIC or any other financial institution, your policy would have to be assigned to LIC or the financial institution.When you assign the policy the title of the policy is shifted from your name to that of the institution.The policy would be reassigned to you on the repayment of the loan.A fresh nomination should be done after reassignment of the policy.Assignment of policies can be done even when a loan is not required or for some special purposes When to Pay the Premiums Remember to pay your premium in time, even if our notices do not reach you. There may be a postal delay. LIC usually sends premium notices one month in advance to the due month of the premium. The months in which premiums are due are given on the first page of the Policy bond. Grace Period For Premium Payment In case you have not paid the premium within the due date there is still time for you to make the payments without payment of interest on the premium. This period is called the grace period. (With the exception of some plans)The grace period for policies where the premium payment mode is monthly is 15 days from the due date.The grace period for policies where the premium payment mode is quarterly, half-yearly or yearly is one month but not less than30 days. How and Where To Pay the Premiums By cash, local cheque (subject to realization of cheque), Demand Draft at Branch Office. The DD and cheques or Money Order may be sent by post. You can pay your premiums at any of our Branches as 99% of our Branches are networked. Many Banks do accept standing instructions to remit the premiums. So by providing a standing instruction to your Bank to debit your account for the premium amount and send it vide a banker’s cheque to LIC, on the due dates and months mentioned on your policy bond. Through Internet : Payment of premiums can be made through Internet through Service Providers viz.HDFC Bank, ICICI Bank, Times of Money, Bill Junction, UTI Bank, Bank of Punjab, Citibank, Corporation Bank, Federal Bank and BillDesk. Premium payment can also be made through ATMs of Corporation Bank and UTI Bank. Premium payment can also be made through Electronic Clearing Service (ECS) which has been launched at Mumbai, Hyderabad, Chennai, Kolkata, New Delhi, Kanpur, Bangalore, Vijaywada, Patna, Jaipur, Chandigarh, Trivandrum. A policyholder having an account in any Bank which is a Member of the local Clearing House can opt for ECS debit to pay premiums. The policyholders wishing to use this system would have to fill up a Mandate Form available at our Branches/DO and get it certified by the Bank. The certified Mandate Forms are to be submitted to our BO/DO. Policy can be anywhere in India: Citibank Kiosks at Industrial Assurance Building, Church gate, New India Building, Santa Cruz, Jeevan Shikha Building, Borivili are dedicated for collection of premiums through cheques. Policy Status – Where Available Status of your policy indicates if your policy is in force or has lapsed due to non-payment of premium. It also provides other important information with respect to your policy, for your reference.The status of your policy is available at the branch that services your policies.It is also available through our Interactive Voice Response Systems in select cities In cities connected by our computerized networks the status will be available in any of the branches.Now the policy status of policies being serviced in the cities connected by network are also available through Internet In select cities online touch screen kiosks are also provided where you can view your policy status.Revival of Lapsed Policies If your policy has lapsed due to non-payment of premiums within the due date, the terms and conditions of the policy contract are rendered void, till you revive your policy. A lapsed policy has to be revived by payment of the accumulated premiums with interest as well as giving the health requirements as required. Always keep your policy in force to ensure that your family gets their financial protection assured by your policy. However certain concessions dependent on the term for which you have paid the premiums are available with the exception of some plans for claims concession Availing Loans on Policies Many of our plans are of endowment type and you would be allowed to raise a loan against your policy should you require funds.You repay the loan with interest or continue paying the interest and allow the loan to be deducted at the time of the claim payments.Further loans on policies are also allowed after deduction of earlier out standings Most financial institutions too allow loans against LIC policies based on the value LIC quotes on request from you.-1190625-8907780Surrender Value This is the value which is the amount payable to you should you decide to discontinue the policy and encash the same from LIC.Surrender value is payable only after three full years premiums are paid to LIC. More over if it is a participating policy the Bonus get attached to it as per prevalent rules.Surrender of policy is not recommended since the surrender value would always be proportionately low.Should you decide to go in for insurance at this stage further insurance would be available to you at a much higher premium because your age would have advanced since taking out the earlier policy.Therefore retention of earlier policies and continuation of all policies without allowing them to lapse is the best strategy for continuing life insurance protection. Maturity, Survival Benefits, Disability And Death Claims: When your Survival Benefits (For Money back policies) or maturity benefits are due, we send intimations to you in advance. However, if the survival benefit amount is less than or equal to Rs.60, 000/- the same will be sent to you directly without policy or discharge forms with a few exceptions.If such intimations have not come to you before the due date kindly inform us so that we may take necessary action Policies Under Salary Savings Scheme If you have taken your policy under salary Saving Scheme please read the following suggestions: For each Salary Savings Scheme Policy your employer deducts the premium from your salary and sends a consolidated cheque for all the policies of the employees to a designated Branch of LIC, where all the policy files are maintained. You can find out which Branch of LIC your policy file will be serviced either from your Agent or from the pay roll department of your employer. You will need to know which branch of LIC services your policy because you will require their help in getting your Maturity/Survival Benefits, for any alterations like change of address and for availing loans etc. In case you are in a transferable job please inform the designated Branch of LIC about your new place of posting. After you join your new place of posting please ask your employer the LIC Branch where the premiums are being remitted by your office there and inform the LIC Branch which was servicing you earlier so that your policy files can be transferred. This way your records will never be at correct place and will receive the services from us like maturity, in time. In case you are leaving your employer for a new job or joining another firm, you have the facility to either continue the policy under the Salary Savings Scheme of your new firm or to convert the payment mode into quarterly, half yearly or yearly mode. Always ensure the continuity of premium payments to avoid frequent revivals of policy. This may become a cumbersome process for a person who is in a transferable job. Please do not send any installments directly to us. Your premium must come through your employer only. We do not have systems to adjust single installments received from our policy holders. Otherwise please convert the mode into quarterly, half yearly, or yearly and pay directly. This way you also get a discount on the premium payable. Leave a permanent local address with us so that we can reach you wherever you are even after many years. Disclaimer: The information contained herein is only to guide you and does not purport to be binding on either party. The contractual implications of your policy will be subject to the terms and conditions of your proposal and the policy document issued to you. They may be also subject to the rules and regulations of the corporation notified from time to time which may be subject to revision and change. The contract will also be subject to the prevailing laws of the country. -1190625-1880235Helpline To ensure that you get the best out of your policy please read our guidelines carefully. Keep the policy bond safe. It will be required at the time of maturity or Survival Benefit. You will also require it if you are availing a loan or want to assign your policy. Inform your spouse/Parents/Children as to where the policy is kept. When you shift residences, please inform the new address to us. Otherwise any communication we send to you, like premium notices, discharge vouchers, etc., will get delayed in reaching you. Ensure that the nominees name is correctly incorporated in the policy bond. Remember to pay your premium in time, even if our notices do not reach you. There may be a postal delay. The months in which premium are due are given in the Policy bond. You may pay the premium by Cheque, DD or Money Order. Remember to quote the policy number every time in your correspondence. The policy number is consisting of nine digits and can be found at the top left hand corner of the policy bond. Check your policy bond and see if your date of birth is correctly given therein. In case you are handing over the policy bond to any person or office, including the LIC office please take a written acknowledgement. When your Survival Benefits (For Money back policies) or maturity benefits are due, we send intimations to your three months in advance. If such intimations have not come to your even within one month of the due date kindly inform us so that we may take necessary action. When in doubt call your agent or the Branch from where you took the policy. Our Branches are our Operating Units. Hence, for any servicing matter, contact the Servicing Branch of your policy. However, for obtaining general information, you can contact any of the Branches of LIC. 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. 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. Benefit offered to Customer’s LIC the best-known 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 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 quot;
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.quot;
 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: quot;
My goal is to make LIC a world class insurance company. It is nearly world class now.quot;
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. Bonus rates Announcing the bonus rates on LIC policies, Mr. Chidambaram said on Whole Life policies it would be Rs. 71 (per Rs. 1,000 sum assured). On endowment policies the bonus ranges from Rs. 34 to Rs. 50. It will be between Rs. 32 and Rs. 45 on money-back policies. The bonus for Jeevan Dhara and Jeevan Suraksha schemes has been enhanced and the terminal bonus retained at last year's level. The bonus is in addition to the special bonus announced during the golden jubilee celebrations of LIC in September. LIC Chairman A.K. Shukla said the Corporation catered to 18 crore policy holders and the size of the life fund had crossed Rs. 3.85 lakh crores. Stating that LIC believed in deploying the latest technology for the benefit of all concerned, he said the portal would enable customers to access a range of services from the comfort of their home. K. Sridhar, managing director of LIC, said: quot;
Better servicing alone can give us new business.quot;
 Why LIC is trusted brand of India? 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 ! 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 ! 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 Governence 2007', `Web 18 Genius of the Web Award 2007 and many more'. LIC adjudged No.1 Trusted Service Brand for the 4th successive year by ET Brand Equity Survey. LIC has been adjudged Superbrand India for 2004-06 and Reader's Digest `Trusted Brand' Asia 2007. This is the only corporation that is catering to more than 190 million satisfied policyholders in India and abroad. This is one of the very few institutions that pays ex-gratia interest on pending maturity claims ! More than 2050 LIC branches all over India are connected together to serve you. You can pay your premium anywhere in the country. 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. 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. 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. 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. Through Employer-Employee Insurance scheme, you can recognize the worth of your most valuable employees whose absence you can ill afford to loose. 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. 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. 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 of borrowal. Infact, policy loans offer one of the most attractive investment opportunities. 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 on the unutilized portion of the amount left with LIC after apportioning the regular installment. 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. LIC pension plans that guarantee you 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. LIC is India’s most trusted brand, INSURING LIVES AND ENSURING SMILES from more than 50 Years.SUPER BRAND & MOST TRUSTED SERVICE BRAND OF INDIA. BEST IT USER IN INDIA (NASSCOM – 2003).Largest Institutional Investor in India and Second largest in Asia among insurers. (Source: Asian Investor)LIC - An Institution Builder promoting many financial and insurance institutes like NSE, NCDEX, LIC Mutual Fund, Stock Holding Corporation of India, National Insurance Academy, Insurance Institute of India etc.LIC is the largest life insurer of IndiaAsset value as on 31.3.2004: 3,673,598.4 mn (INR).Offers over 45 plans to cover your life at various stagesOver 160 million customers and 1.1 million agents. It has underwritten more than 160 million policies.2,048 branch offices (all computerized) of which 2019 are networked”From all above we can say our money is safe and secure with assured returns.” Project Analysis The Positive side of LIC as well as Negative side of LIC. I encourage other readers to correct me if I am wrong and also add light to any point that I may have missed.First let’s talk about the Positive side of LIC1. LIC is owned by the government and therefore it is the only company besides the PPF that has the sovereign guarantee of the govt. of India. It is a different story that today LIC has become so powerful that the govt. leans on LIC every time that the Stock Market crashes. Imagine having an Asset base of over Rs 6 Lac Crore. . That’s a 14 digit number! No company in India can boast of such figures. Mind boggling. 2. LIC is the only Life Insurance Company making profits. Most of the Private Insurers including the self proclaimed market leaders like ICICI and Bajaj Allianz are booking heavy losses. Check IRDA website in the Annual Report column. The point is that if an insurance company makes losses year over year, then how will they manage to pay the Claim amount? Afterall no Insurance company is here to do charity business.3. When it comes to paying claims, again LIC is Number One with the claims settlement ratio of more than 99%. Private Insurers cannot match LIC’s ability on claims settlement. Again, please visit IrDA’s website to see the claims settlement performance of various companies.4. LIC has the world’s largest sales force, yes over 10 lac agents and now universities in western countries are trying to study how a company managed to appoint such a large sales force. A sales force of over 1 million! Truly a remarkable achievement.5. Many people argue that LIC has not been able to penetrate the market as it has insured only 15% of the population. My point is, in a poor country like India where there are so many people living below the poverty line, so many people who die of starvation, so many people who don’t have access to basic medication, so many people who don’t have basic necessities of life like food, shelter, education and clothing. Will such a person first feed his children or buy Insurance ? Lets not forget that a majority of the Indian population is poor and a substantial percentage is living below the poverty line. At a personal level i feel that LIC has done a satisfactory job of insuring people. # NOW THE NEGATIVE POINTS OF LIC #1. The Administrative staff in LIC is in deep slumber. Try writing a complaint to them and they wont even bother to reply back. If you ask the Branch Manager for the complaints book, he probably wont have it in place. If an Agent complains against any staff, then the Agent is black listed and next time onwards his work is not done.2. In order to show a better performance & achieve branch Targets, Agents are motivated by the Managers to split the policies. This not only adds to the inconvinience of the policyholders but it also increases the expenses of LIC. Competitions for Agents are held with Prizes being offered on the number of policies sold and not on the number of lives insured. Therefore many Agents are tempted to split the policies in order to get better prizes. However if an agent wants the forms or sales literature, most of the time its out of stock. But surprisingly just a week before any scheme is about to close, the office is flooded with forms & sales literature. This is very disturbing.3, As I earlier said, LIC is lacking in Effective Leadership in recent times. Managers having designations like Marketing Manager or Sales Manager donot have the capability to motivate an audience at a meeting. Yes this is true even in a city like Mumbai. Even the Senior level managers cannot make effective presentations or design a sales strategy. Their only mantra at an Agents meeting is quot;
Friends, bring more policies!’. If you ask them how to bring more policies, they wont know. Its a pity ! 4. Though LIC has more than 2000 branches, they are not systematically located. In Mumbai’s Fort area, LIC has more than 20 branches within a radius of 1.5kms. Whats the use ? In the suburbs where most of the people reside, there are no branches at all. LIC has no branches in Bandra East, Khar East & West, Santacruz East, Vile Parle East, Andheri West, Jogeshwari West, Mahim, Matunga, etc. If LIC gives a thought to systematic relocation of its offices, it will immensly help the policyholders. 5. Even though LIC claims to have taken several initiatives in the IT sector, policyholders still face problems in revival of their policies, payment of premium in several branches, change of mode, change of address, etc. The After-sales policy services department needs to be revamped. Policyholders feel that LIC agents are humble while selling a policy and thereafter they fail to provide any service to the client. The truth is that LIC is so weak in policy services department, that even a good agent finds it difficult to get the work done from the administrative staff.To sum up, i would say that LIC will never cheat a Policyholder in payment of claim, but at the same time everyone will agree that LIC is not responsive to the needs of the customer. If you have purchased an LIC policies then dont forget to pay the premium on time, and when your policy gets matured LIC will honestly pay your Maturity amount on time. The employees are sometimes rude in their behaviour with the Policyholder. If a claim cheques is handed over by a courteous and smiling employee of LIC, it will enhance the image of LIC in the mind of the policyholder.Today LIC is not just an Insurance Company, LIC is a Movement, LIC is a Cult, LIC is a Religion. Imagine 10 lac agents and 1 lac employees serving 16 crore policyholders in India. You cannot deny that LIC has become the way of life in India. Daily you can hear someone or the other talking of LIC in local trains, at fish markets, at restaurants, on News Channels, in your own offices, etc.As i earlier said, LIC has started lacking in effective leadership. If a company like LIC starts sponsoring irrelevant awards like Zee Cine awards which it had done 2 years ago, then it will send the wrong message in the minds of the policyholders. Imagine India’s most famous institution sponsoring a Cine Awards function stating that it was done to increase the brand awareness of LIC. That sounded like a big joke. It is time that the top level officials of LIC come out of their air-conditioned cabins and travel by public transport for sometime in order to feel the pulse of the common man. Conclusion 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. Instinctive behavior and ingrained training must be adjusted to fit new circumstances. STXs must be developed locally or borrowed from units who have already been through the training. 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. 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. So we can say that so many merit’s and Demerit’s in life insurance Corporation of India. BIBLIOGRAPHY Books CMIE Database programming with MS Office, MS office, Visual vmpro software (Lic) Important websites – www.google.com www.licindia.com Magazine Yogkshem –Lic Magazine Outlook Express Business today Finance & Banking Money Outlook News Paper Business standard Times of India Economic times Hindustan times LIMITATION OF THE PROJECT Lic has been so many limitations ----- A. A Dealer is not required to obtain the seller’s identification, photograph the seller, record the seller’s thumbprint, or have the seller complete the Declaration of Proof of Ownership if the Dealer complies with the remaining requirements in the Administrative Rules and if: 1. The item is acquired through consignment by a Dealer from a person who lives more than 150 miles from the City of Portland and the consigned property is mailed, shipped, or sent by courier to the Dealer. 2. The item is acquired during a trade show. All items acquired during a trade show by a Dealer must be reported. At the time of the transaction, the Dealer must write on the transaction report a complete, legible and accurate description of the regulated property of sufficient detail to distinguish like objects one from the other. The Dealer must also record the name and date of the event and the address of the venue in the name, date, and address fields of the transaction report form. Items acquired during a trade show may be sold or traded during the trade show without being held. Items still in a Dealer’s possession at the end of the show will be subject to the hold period requirement in effect for that Dealer’s acquisitions of regulated property. 3. The item is acquired from a business whose acquisitions of regulated property consist exclusively of donated items and/or purchases from a 501(c)3 organization. The Dealer must record the name and location address of the business in the name and address fields of the transaction report form and the date of the acquisition. 4. The item is acquired through an internet transaction. The Dealer must record on the transaction report the seller’s email address or seller’s identification, the name of the internet website that listed the item, and the date of the acquisition. 5. The item is acquired by the Dealer from a yard sale, garage sale, estate sale or swap meet. The Dealer must record on the transaction report the physical address of the sale location and the date of the acquisition. Items acquired under Subsection A. must be held in compliance with the hold period requirement in effect for the Dealer’s other acquisitions of regulated property. B. A Dealer is not required to obtain the seller’s identification, photograph the seller, record the seller’s thumbprint, or have the seller complete the Declaration of Proof of Ownership if the Dealer complies with the remaining requirements in the Administrative Rules and if the item is used, regulated property acquired from a licensed business. The Dealer must keep a receipt for the item from the licensed business that includes the licensed business’ name and a description of the item. The receipt must be retained at the Dealer’s business location for one year or until the item is sold, whichever is longer. The Dealer must record on the transaction report the name and location address of the business in the name and address fields of the transaction report form, and the date of the acquisition. The item does not have to be held. C. A Dealer is not required to make a copy of the acceptable identification obtained from the seller, photograph the seller, or record the seller’s thumbprint if the Dealer complies with the following requirements: 1. Conducts each and every acquisition of regulated property by either: a. not tendering payment to the seller for a minimum of 15 days after the regulated property is delivered to the Dealer; or b. offering in-store credit that must be used for merchandise only and not redeemed for cash; and 2. Holds each and every item of regulated property for a minimum of 15 days from the date of acquisition; and 3. Complies with the remaining requirements set forth in the Administrative Rules; and 4. Notifies the Director and the Chief of Police in writing that each and every acquisition of regulated property will be conducted by not tendering payment to the seller for a minimum of 15 days after the regulated property is delivered to the Dealer. D. A Dealer is not required to make a copy of the acceptable identification obtained from the seller, photograph the seller, or record the seller’s thumbprint when the Dealer acquires an item of regulated property on consignment if the Dealer complies with the following requirements: 1. Does not tender payment to the consignor for a minimum of 15 days after the regulated property is delivered to the Dealer; 2. Holds each and every item of consigned regulated property for a minimum of 15 days; Complies with the remaining requirements in the Administrative Rules. “So these are the limitation of life insurance Corporation of India. In every company has so many limitation but LIC has limitation but It is no -1 and trusty brand of India.” So we can say that LIC is best service provider and trusty brand of India.

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