project-on-lic-SIDDANNA M BALAPGOL

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 M r . S udhi r S har an s i r (director ).
They have always been an invaluable source of inspiration
had work, sincerity and dedication.
I t 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 O F M ANAGEMENT S CIENCE LUCKNOW”
I would like to express my sincere ineptness to my Project
Guide S H U B H E N D R A S IN G H P A R IH A R 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
1. Company Profile
2. Objective of Study
3. Introduction of Topic
4. Brief Overview of Other Insurance Industry
5. Research Methodology
6.
7. Conclusion & Suggestions
8. Bibliography
9. Annexure

INTRODUCTION
1. 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 & facts
An 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, "There are nine planets in our solar system" 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 & opinions
In 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:
1. The No./s of the policy/ies
2. The name of the policyholder
3. Death Certificate issued by concerned Authority
4. The date of death
5. The cause of death and
6. 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
o primary data : through observation as well as
personal interview
o 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
18-26 21
26-35 33
35-45 34
45-55 06
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. 159
Children Deferred - Plan no.41
Jeevan Kishore - Plan no.102
Jeevan Chhaya - Plan no.103
Marriage Endowment/Educational Annuity - Plan No. 90
Jeevan Anurag - Plan no.168
 Endowment Policy
Endowment with Profits - Plan no.14 Limited Payment Endowment with
Profits - Plan no.48
Jeevan Mitra - Plan no.88
New 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 Bharati Plan No 160
Jeevan Samriddhi Plan No 154, 155, 156 157
Bima Bachat- Plan no.175
 Pension Plans or Annuities
New Jeevan Dhara - Plan no.148
New Jeevan Suraksha Plan no. 147
Jeevan Akshay II Plan no. 163
Jeevan Nidhi Plan no. 169
Jeevan 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 Safety
Your Policy Number
Policy Conditions
Alterations In Policy
If Your Policy Is Lost
Your Contact Address – Keep Us Posted Without Fail
Admission Of Age
Nomination
Assignment
When To Pay The Premiums
Grace Period For Premium Payment
How And Where To Pay The Premiums
Policy Status – Where Available
Revival Of Lapsed Policies
Availing Loans On Policies
Surrender Value
Maturity, Survival Benefits, Disability And Death Claims
Policies 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 appointee
Assignment
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.
Surrender 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:
1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.

Helpline
To ensure that you get the best out of your policy please read our guidelines carefully.
1. 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.
2. Inform your spouse/Parents/Children as to where the policy is kept.
3. 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.
4. Ensure that the nominees name is correctly incorporated in the policy bond.
5. 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.
6. 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.
7. Check your policy bond and see if your date of birth is correctly given therein.
8. In case you are handing over the policy bond to any person or office, including
the LIC office please take a written acknowledgement.
9. 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.
10. 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 "supported us (government)
when we opened up insurance because it was confident of doing better in a

competitive environment. LIC continues to be the market leader with 88 per cent
market share of new policies and 78 per cent of premium. It is clearly recognised as
the market leader."
The e-portal (licindia.com) will provide information on policy status, bonus, premium
payment, loans and change of address. It will facilitate online payment of premium
and has details of the doctors and agents. It also has a branch locator and `maturity
alert' facility. The objective is to provide world-class service.
Noting that the State-owned Corporation utilised information technology in its
relentless effort to remain the leader, Mr. Chidambaram said: "My goal is to make
LIC a world class insurance company. It is nearly world class now." All 2,048
branches of LIC, which had been adjudged the best user of IT by NASSCOM, were
fully automated. Barring ten, all the branches were networked.
Mr. Chidambaram said the e-portal was another example of LIC's constant innovation
using information technology. Some of the multi-interfaces it offered to customers
included call centres, IVRS, SMS and satellite branches.
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: "Better servicing alone can give us new
business."
Why LIC is trusted brand of India?
1. As a Govt of India owned Company, LIC is 51 + years old in the field of life
insurance and money management. LIC's Life Fund size as on day is more
than Rs 5 Lakh Thousand Crores !

2. Any LIC policyholder or the nominee will vouch for the best claims settlement
from LIC. Perhaps, this is the only institution where you as a policyholder are
virtually chased till such time your claim cheques is handed over to you !
3. LIC has won `NDTV Profit Leadership Award 2007 under Life Insurance
Category', `Outlook Money Award 2007 as the best Life Insurer', `CNBC
Awaaz Consumer Award 2007 as the best Life Insurance Company',
`Golden Peacock Award for excellence in Corporate Governence 2007',
`Web 18 Genius of the Web Award 2007 and many more'.
4. LIC adjudged No.1 Trusted Service Brand for the 4th successive year by ET
Brand Equity Survey.
5. LIC has been adjudged Superbrand India for 2004-06 and Reader's Digest
`Trusted Brand' Asia 2007.
6. This is the only corporation that is catering to more than 190 million satisfied
policyholders in India and abroad.
7. This is one of the very few institutions that pays ex-gratia interest on
pending maturity claims !
8. More than 2050 LIC branches all over India are connected together to serve
you. You can pay your premium anywhere in the country.
9. During its long existence, LIC has kept on updating its portfolio by bringing in
new plans depending on public requirement. More than 50 of them are most
popular and can be customized to meet any of your requirements. LIC ULIPs
have become extremely popular due to the returns they offer. Money Plus-
latest LIC Unit Linked Plan is a case in point.
10. All LIC Plans come with Sovereign Guarantee i.e., Govt of India
Guarantee regarding repayment. Infact, as of now, only LIC plans enjoy
this Govt Guarantee. Beneficiary for this Sovereign Guarantee is you and
you alone as the policyholder/ would-be policyholder.
11. All LIC plans are characterized by low premium, high life insurance coverage
and a vast package of benefits offered by them. Add to this package, section
80C benefit and section 10(10D) benefit on the maturity proceeds, you will
find investment on LIC plans one of the most coveted investment options
available to you.
12. Premium paid under Key-Man Insurance plan is a recognized business
expense under section 37(I) of the Income-Tax Act. For companies making
profits, this is a very good incentive indeed.
13. Through Employer-Employee Insurance scheme, you can recognize the worth
of your most valuable employees whose absence you can ill afford to loose.
14. Entire contribution to LIC Group Gratuity Scheme is a recognized business
expense in the hands of the employer. In addition, through this scheme, the
employer can transfer his gratuity liability to the corporation and fund the
same under cash accumulation scheme. The most popular among all the
companies.
15. LIC is declaring quite an impressive bonus (profits) on all its with-profits
policies every year. Extra attraction under LIC Bonus is (a) it is calculated
every year on the insured amount and not on the premium paid and (b) entire
bonus received along with insured amount either by you on maturity of your
policy(ies) or by your nominee in your absence during the currency of your

policy(ies) is free from income-tax under section 10(10D) of the Income-tax
Act.
16. On most of the LIC plans, you can borrow to take care of your immediate
monetary requirements. None of the policy benefits get affected as a result of
borrowal. Infact, policy loans offer one of the most attractive investment
opportunities.
17. You can pay your premium 3 years in advance at 5% discount. Chief
attractions of this advance payment of premium are (a) there is no possibility
of your overlooking your premium payment and getting your policy(ies)
lapsed wherever you are in the world and (b) you will be earning 5% tax-free
interest on the unutilized portion of the amount left with LIC after
apportioning the regular installment.
18. Most of the LIC plans come with Riders to take care of Total and Permanent
Disablement due to Accident and some of the most dread diseases that may
result in loss of income.
19. LIC pension plans that guarantee 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 India
Asset value as on 31.3.2004: 3,673,598.4 mn (INR).
Offers over 45 plans to cover your life at various stages
Over 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 LIC
1. LIC is owned by the government and therefore it is the only
company besides the PPF that has the sovereignguarantee of the
govt. of India. It is a differentstory that today LIC has become so
powerful that the govt. leans on LIC every time that the Stock
Market crashes. Imagine having an Assetbase 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. CheckIRDA
website in the Annual Reportcolumn. 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 settlementperformance 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 poorcountry 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 necessitiesof life like food,shelter,
education and clothing. Will such a personfirst feed his children or
buy Insurance ? Lets not forgetthat a majority of the Indian
population is poor and a substantial percentage is living below the
poverty line. At a personal level i feelthat 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 orderto 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 forAgents 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 orderto
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
designa sales strategy. Their only mantra at an Agents meeting is
"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 mostof 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 policyservices
department needs to be revamped. Policyholders feelthat 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 Policyholderin
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 forgetto 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 becomethe way of life in India. Daily you can
hear someone orthe 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 commonman.

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

LIMITATIONOF 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;
1. 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.

project-on-lic-SIDDANNA M BALAPGOL

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