Professional Documents
Culture Documents
On
Life Insurance corporation of
India
Submitted By
insurance
ACKNOWLEDGEMENT
SCIENCE LUCKNOW”
CONTENTS
Introduction
Preface
Acknowledgement
Methodology
Finding
Project Analysis
Conclusion
Li
Gaurav Kumar Gupta
BML/01/14
mitation
Bibliography
INTRODUCTION
LIC of India is the one and only public sector life insurance
Company in India.
1870: Bombay Mutual Life Assurance Society, the first Indian life
insurance company started its business.
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.
Nationalization
Current status
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.
Subsidiaries
LIC owns the following subsidiaries:
Certificate
It is to certify that the project work entitled “Life
IT for Insurance
In today’s world, IT is a must for any industry to keep pace with the
customer’s changing expectations. This is especially relevant in
the service industry. The insurance sector has to ensure that the
technology it chooses does not lag behind where customer
expectations are concerned.
In our case, LIC has more than 16 crore policy holders. So it has to
induct the best IT products available and use them to cater to the
needs of the customers and deliver anywhere any time service on
demand and to add value to its new products. The trust and the
goodwill of the customer gained in the last 50 years have to be
consolidated by making all activities more customer-focused.
Come again? Focus those glazing eyes, and let's take a closer
look.
But what has perhaps been lost in all the heat and dust of market
share and topline growth is that the Life Insurance Corporation has
emerged as a regional giant with assets of over Rs 8-lakh crore,
which has been providing consistent, returns to the government
and policyholders for 52 years. Life Insurance Corporation
chairman TS Vijay an speaks of how LIC is a growing organization
and the corporation’s plans of regaining its lost market share.
Why has the new business growth slowed? What will be the
impact of the lower growth on LIC’s performance? Will it affect
ratios?
Total premium growth of LIC has always been quite stable, even
when there are periodical ups and downs in new premium income.
Last year, we ended the year with around 10% growth in First
Premium income despite several odds. However, the growth in
total premium income was quite healthy, indicating better
conservation ratio.
Our overall expense ratio is the least in the industry. Last year, I
Gaurav Kumar Gupta
BML/01/14
was only 11.94%, and it was just 5.56%, excluding the
commission. The surplus generated was a record high of Rs
16,598.65 crore, which enabled us to give higher terminal bonus to
our “with profit” policyholders and to increase dividend to the
government.
Having said that, I agree that there has been a decline in the new
premium in the current financial year. One of the reasons was that
after withdrawal of our successful old plans, we did not
immediately introduce any new ULIP. Since then, we have
launched new products and the response has been very positive
and encouraging.
It is not accurate to say that LIC has reached its saturation point in
terms of distribution, as we are expanding our reach and network.
Other insurers are perhaps expanding very fast and the effect is
reflected in their balance sheets. We do have constraints of capital
and any growth has to be supported by internal accruals only.
First of all, let me say that new regulations are not only about
equity exposure, but encompass several other aspects too.
Second, these norms are not just LIC-centric, but applicable to the
whole industry. Our total assets of more than Rs 8-lakh crore are
our legacy built on the basis of earlier regulations and norms under
Will the exposure limit force LIC to divest in blue chips and invest
in companies that have a lower credit rating?
Methodology
TYPE OF RESEARCH-
STATICAL TOOL’S
• SPSS 16.0
• MS EXCEL
• MS Word.
• MS Power point
Parameters of Research
• Product range offered.
• Service quality.
• Claim’s settlement’s history.
• Network
• Benefit offered to customer’s
Finding
Endowment Policy
Special Plans
Term Policy
Service Quality
Policy Conditions
Alterations In Policy
Admission Of Age
Nomination
Assignment
Surrender Value
Helpline
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.
Policy Conditions
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
Kindly make a thorough search before concluding that you have lost
the policy bond. Look for the same within your residence, among
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 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.
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
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
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.
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.
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.
If you have taken your policy under salary Saving Scheme please
read the following suggestions:
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.
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.
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.
Admission Of Age:
Payment of Premium:
Days Of Grace:
• 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.
Loans:
Relief to Policyholders:
Nomination:
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.
Network of LIC
INTERNATIONAL OPERATIONS/ASSOCIATES
INTERNATIONAL OPERATIONS
LIC Fiji
LIC Mauritius
LIC United Kingdom
LIC (International) B.S.C (C), Bahrain
LIC (Nepal) Ltd
LIC (Lanka) Ltd
Gaurav Kumar Gupta
BML/01/14
Saudi Indian Company for Co-op. Insurance,
KSA.
ASSOCIATES
Bonus rates
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.
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.
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.
Gaurav Kumar Gupta
BML/01/14
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.
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.
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,
briefing that the LIC block has been checked, will lead us to a possibly fatal
BIBLIOGRAPHY
Books
MS office,
Important websites –
www.google.com
www.licindia.com
Magazine
Outlook Express
Business today
News Paper
Business standard
Times of India
Economic times
Hindustan times
LIMITATION OF THE
PROJECT
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.