ROLE OF LIC IN

INSURANCE INDUSTRY

TAGLINE OF LIC OF INDIA

"ज िंदगीकेसाथभी, ज िंदगीकेबादभी"

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 INDEX

Sr.no. Description

1 Introduction

2 Origin of LIC of india

3 History of LIC in india

4 Classification of insurance

5 Need for life insurance

6 Objective of LIC of india

7 Channels of distribution

8 Awards won by LIC of india

9 Advantages & disadvantages

10 Tax benefit

11 Marketing strategies in life insurance business

12 Conceptual discussions

13 Data analysis

INTRODUCTION:

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“Man Proposes & God Disposes”
This statement is self-explanatory that man has no control on its life and results of its human
activities. It means that there is always uncertainty of the results of human activity. From the
moment of birth, till the end of life, all material possessions are also continually exposed to
uncertainty. So, we can say that-
“Uncertainty is the fundamental fact of life”
This uncertainty leads to fear of risk in our life. Fear of risk can be satisfied by taking all
precautions to avoid risk. In spite of all precautions, accident occurs. So, only these
precautions are not sufficient to avoid the consequences of uncertainty, but it requires more
effective technique to deal with the problem of risk in our society. We can deal with the risk
in various ways but insurance is one of the best techniques to deal with the risk.

MEANING OF INSURANCE:-
The meaning of insurance is important to understand for anybody that is considering buying
an insurance policy simply understanding the basics of finance. Insurance is a hedging
instrument used as a precautionary measure against future contingent losses. This instrument
is used for managing the possible risks of the future.
Insurance is bought in order to hedge the possible risks of the future which may or may not
take place. This is a mode of financially insuring that if such a incident happens then the loss
does not affect the present well-being of the person or the property insured. Thus, through
insurance, a person buys security and protection.
A simple example will make the meaning of insurance easy to understand. A biker is always
subjected to the risk of head injury. But it is not certain that the accident causing him the head
injury would definitely occur. Still, people riding bikes cover their heads with helmets. This
helmet in such cases acts as insurance by protecting him/her from any possible danger. The
price paid was the possible inconvenience or act of wearing the helmet; this is equivalent to
the insurance premiums paid.Though loss of life or injuries incurred cannot be measured in
financial terms, insurance attempts to quantify such losses financially. Insurance can be
defined as the process of reimbursing or protecting a person from contingent risk of losses
through financial means, in return for relatively small, regular payments to the insuring body
or insurance company.

OBJECTIVES:

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 a) The report gives the brief background of the sector & proceeds to highlight the short
comings of the existing set-ups & Players
b) The benefits of liberalized sector are enumerated
c) The report also tries to identify the market potential for insurance products & the
strategy that can be employed to exploit the same.
d) The stress is also given on knowing the awareness level of general public.

PROJECT METHODOLOGY:
To conduct the market research first of all it is necessary to create a Project design.
A project design is basically a blue print of how project is to be constructed, it may include;
 Choosing the approach
 Determining the types of data needed
 Locating the source of data
 Choosing the method of data

PROJECT DESIGN:
Basically there are 3 types of approaches to design a better project:
1. Exploratory
2. Descriptive
3. Experimental
During this project, I have considered the Descriptive & Exploratory approaches because
of the availability of relevant information to describe the relation between the marketing
problem & the available information.
For the project two types of data is used;
a. Primary source of data:
First-hand information, data, reviews & opinions from the survey through college
students, professors & neighbouring people
b. Secondary source of data:
Data, information which is already exists in collected from published sources. The
secondary data is collected through following sources;
i). Newspapers & magazines
ii). Insurance posts by LIC
iii). Websites (Internet)

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ORIGIN OF LIC in india

Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the
caravan trade by giving loans that had to be later repaid with interest when the goods arrived
safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice. Life
insurance had its origins in ancient Rome, where citizens formed burial clubs that would meet
the funeral expenses of its members as well as help survivors by making some payments. As
European civilization progressed, its social institutions and welfare practices also got more
and more refined. With the discovery of new lands, sea routes and the consequent growth in
trade, Medical guilds took it upon themselves to protect their member traders from loss on
account of fire, shipwrecks and the like. Since most of the trade took place by sea, there was
also the fear of pirates. So these guilds even offered ransom for members held captive by
pirates. Burial expenses and support in times of sickness and poverty were other services
offered. Essentially, all these revolved around the concept of insurance or risk coverage.
That's how old these concepts are, really. In 1347, in Genoa, European maritime nations
entered into the earliest known insurance contract and decided to accept marine insurance as
a practice.

The first step...

Insurance as we know it today owes its existence to 17th century England. In fact, it began
taking shape in 1688 at a rather interesting place called Lloyd's Coffee House in London,
where merchants, ship-owners and underwriters met to discuss and transact business. By the
end of the 18th century, Lloyd's had brewed enough business to become one of the first
modern insurance companies. Back to the 17th century. In 1693, astronomer Edmond Halley
constructed the first mortality table to provide a link between the life insurance premium and
the average life spans based on statistical laws of mortality and compound interest. In 1756,
Joseph Dodson reworked the table, linking premium rate to age. The first stock companies to
get into the business of insurance were chartered in England in 1720. The year 1735 saw the
birth of the first insurance company in the American colonies in Charleston, SC. In 1759, the
Presbyterian Synod of Philadelphia sponsored the first life insurance corporation in America
for the benefit of ministers and their dependents. However, it was after 1840 that life
insurance really took off in a big way. The trigger: reducing opposition from religious groups.
The 19th century saw huge developments in the field of insurance, with newer products being
devised to meet the growing needs of urbanization and industrialization. In 1835, the
infamous New York fire drew people's attention to the need to provide for sudden and large

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losses. Two years later, Massachusetts became the first state to require companies by law to
maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can
cause huge losses in densely populated modern cities There were more offshoots of the
process of industrialization. In 1897, the British government passed the Workmen's
Compensation Act, which made it mandatory for a company to insure its employees against
industrial accidents. With the advent of the automobile, public liability insurance, which first
made its appearance in the 1880s, gained importance and acceptance? In the 19th century,
many societies were founded to insure the life and health of their members, while fraternal
orders provided lowcost, members-only insurance. Even today, such fraternal orders continue
to provide insurance coverage to members as do most labour organizations. Many employers
sponsor group insurance policies for their employees, providing not just life insurance, but
sickness and accident benefits and old-age pensions. Employees contribute a certain
percentage of the premium for these policies. Insurance in India can be traced back to the
Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's
corporate headquarters, is derived from the Rig Veda. The term suggests that a form of
"community insurance" was prevalent around 1000 BC and practised by the Aryans.

Burial societies of the kind found in ancient Rome were formed in the Buddhist period to
help families build houses, protect widows and children. Bombay Mutual Assurance Society,
the first Indian life assurance society, was formed in 1870. Other companies like Oriental,
Bharat and Empire of India were also set up in the 1870-90s. It was during the swadeshi
movement in the early 20th century that insurance witnessed a big boom in India with several
more companies being set up. Act of 1938 that looked into investments, expenditure and
management of these companies' funds By the mid-1950s, there were around 170 insurance
companies and 80 provident fund societies in the country's life insurance scene. However, in
the absence of regulatory systems, scams and irregularities were almost a way of life at most
of these companies. For years thereafter, insurance remained a monopoly of the public sector.
It was only after seven years of deliberation and debate - after the RN Malhotra Committee
report of 1994 became the first serious document calling for the re-opening up of the
insurance sector to private players -- that the sector was finally opened up to private players
in 2001.

The Insurance Regulatory & Development Authority, an autonomous insurance regulator set
up in 2000, has extensive powers to oversee the insurance business and regulate in a manner
that will safeguard the interests of the insured.

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HISTORY OF LIC IN INDIA

The story of insurance is probably as old as the story of the mankind. The same
instinct that prompts modern businessman today to secure themselves against loss and
disaster existed in primitive men also. They too sought to avert the evil consequences of fire
and flood and loss of life and were willing to make some sort of sacrifice in order to achieve
security. Though the concept of insurance is largely a development of the recent past,
particularly after the industrial era-past few centuries-yet its beginnings date back almost
6000 years.
Life Insurance in its modern form came to India from England in the year
1818.Oriental Life Insurance Company started by Europeans in Calcutta was the first Life
Insurance Company on Indian soil. All the insurance companies established during that
period were brought up with the purpose of looking after the needs of European community
and Indian natives were not being insured by these companies. However, later with the efforts
of eminent people like Babu Muttylal Seal, the foreign life insurance companies started
insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy
extra premiums were being charged on them.
Bombay Mutual Life Assurance Society heralded the birth of first Indian life
insurance companies in the year 1870, and covered Indian lives at normal rates. Starting as
Indian Enterprise with highly patriotic motives, insurance companies came into existence to
carry the message of insurance and social security through insurance to various sectors of
society.
Bharat Insurance Capital Company (1896) was also one of such companies inspired
by nationalism. The Swadeshi Movement of 1905-1907 gave rise to more insurance
companies. The United India in Madras, National Indian and National Insurance in Calcutta
and the Co-Operative Insurance Company took its birth in one of the rooms of the Jorasanko,
house of the great poet Rabindra Nath Tagore, in Calcutta. The Indian Mercantile, General
Assurance and Swadeshi Life (later Bombay Life) were some of the companies established
during the same period. Prior to 1912; India had no legislation to regulate insurance business.
In the year 1912, the Life Insurance Companies Act 1912 made it necessary that the premium
rate tables and periodical valuations of companies should be 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 20th Century saw lot of growth in insurance in business.
From 44 companies with total business-in-force as Rs.22.44 crores it rose to 176companies
with total business-in-force as Rs. 298 crores in 1938. During the mushrooming of insurance
companies many financially unsound corner were also floated which failed miserably. The
insurance Act 1938 was the first legislation governing not only life insurance but also nonlife
insurance to provide strict state control over insurance business.

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 The demand for nationalization of life insurance industry was made repeatedly in the
past but it gathered momentum 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 of
India was created on 1September, 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.

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CLASSIFICATION OF INSURANCE:
TYPES OF INSURANCE:-

Insurance

Non-Life
Life Insurance
Insurance

General Miscellaneous
Insurance Insurance

 Life Insurance
 Non-Life Insurance- Property Insurance, Casualty Insurance, Health Insurance Life
Insurance:
Life Insurance is a contract that pledges payment of an amount to the person assured (or his
nominee) on the happening of the event insured against. The contract is valid for payment of
the insured amount during:
 The date of maturity, or
 Specified dates at periodic intervals, or
 Unfortunate death, if it occurs earlier

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WHAT IS LIFE INSURANCE?
Life insurance may be defined as a contract in which the insurer in consideration of a certain
premium either in lump sum or other periodical payments, agrees to pay to the assured or to
the person for whose benefits the policy is taken, a stated sum of money on the happening of
a particular event contingent on the duration of human life. Thus, under a whole-life
assurance, the policy is payable at the of the assured and under an endowment policy, the
money is payable on the assureds’ surviving a stated period of years.

MEANING OF LIFE INSURANCE:-

According to sec (2) (11) of the Insurance Act, Life insurance business means “The business
effecting contracts upon human life”. It includes:-
a. Any contracts whereby the payment of money is assured upon death (except death by
accident only) or the happening of any contingency dependent on human life.
b. Any contract which is subject to the payment of premium for a term dependent on
human life.
c. Any contract which include the granting of disability and double or triple indemnity,
accident benefits, the granting of annuities upon human life, and the granting of
super-annuation allowances.

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TYPES OF LIFE INSURANCE

Life insurance may be divided into two basic classes – temporary and permanent or following
subclasses – term, universal, whole life and endowment life insurance.

 Term Insurance
Term assurance provides life insurance coverage for a specified term of years in exchange for
a specified premium. The policy does not accumulate cash value. Term is generally
considered "pure" insurance, where the premium buys protection in the event of death and
nothing else.

 There are three key factors to be considered in term insurance:

Face amount (protection or death benefit),

Premium to be paid (cost to the insured),

Length of coverage (term).

Various insurance companies sell term insurance with many different combinations of these
three parameters. The face amount can remain constant or decline. The term can be for one or
more years. The premium can remain level or increase. Common types of term insurance
include Level, Annual Renewable and Mortgage insurance."

Level Term policy has the premium fixed for a period of time longer than a year. These terms
are commonly 5, 10, 15, 20, 25, 30 and even 35 years. Level term is often used for long term
planning and asset management because premiums remain consistent year to year and can be
budgeted long term. At the end of the term, some policies contain a renewal or conversion
option. Guaranteed Renewal, the insurance company guarantees it will issue a policy of equal
or lesser amount without regard to the insurability of the insured and with a premium set for
the insured's age at that time. Annual renewable term is a one year policy but the insurance
company guarantees it will issue a policy of equal or lesser amount without regard to the
insurability of the insured and with a premium set for the insured's age at that time.

Another common type of term insurance is mortgage insurance, which is usually a level
premium, declining face value policy. The face amount is intended to equal the amount of the
mortgage on the policy owner’s residence so the mortgage will be paid if the insured dies.

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A policy holder insures his life for a specified term. If he dies before that specified term is up
(with the exception of suicide see below), his estate or named beneficiary receives a payout.
If he does not die before the term is up, he receives nothing. However, in some European
countries (notably Serbia), insurance policy is such that the policy holder receives the amount
he has insured himself to, or the amount he has paid to the insurance company in the past
years..

 Permanent Life Insurance

Permanent life insurance is life insurance that remains in force (in-line) until the policy
matures (pays out), unless the owner fails to pay the premium when due (the policy expires
OR policies lapse). The policy cannot be canceled by the insurer for any reason except fraud
in the application, and that cancellation must occur within a period of time defined by law
(usually two years). Permanent insurance builds a cash value that reduces the amount at risk
to the insurance company and thus the insurance expense over time. This means that a policy
with a million dollar face value can be relatively expensive to a 70 year old. The owner can
access the money in the cash value by withdrawing money, borrowing the cash value, or
surrendering the policy and receiving the surrender value.

The four basic types of permanent insurance are whole life, universal life, limited pay and
endowment.
1. Whole life coverage:

Whole life insurance provides for a level premium, and a cash value table included in the
policy guaranteed by the company. The primary advantages of whole life are guaranteed
death benefits, guaranteed cash values, fixed and known annual premiums, and mortality and
expense charges will not reduce the cash value shown in the policy. The primary
disadvantages of whole life are premium inflexibility, and the internal rate of return in the
policy may not be competitive with other savings alternatives. The death benefit can also be
increased through the use of policy dividends. Dividends cannot be guaranteed and may be
higher or lower than historical rates over time. Premiums are much higher than term
insurance in the short term, but cumulative premiums are roughly equal if policies are kept in
force until average life expectancy.

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Cash value can be accessed at any time through policy "loans" and are received "income-tax
free". Since these loans decrease the death benefit if not paid back, payback is optional. Cash
values support the death benefit so only the death benefit is paid out.

Dividends can be utilized in many ways. First, if Paid up additions is elected, dividend cash
values will purchase additional death benefit which will increase the death benefit of the
policy to the named beneficiary. Another alternative is to opt in for 'reduced premiums' on
some policies. This reduces the owed premiums by the unguaranteed dividends amount. A
third option allows the owner to take the dividends as they are paid out. (Although some
policies provide other/different/less options than these - it depends on the company for some
cases)

2. Universal life coverage:

Universal life insurance (UL) is a relatively new insurance product intended to provide
permanent insurance coverage with greater flexibility in premium payment and the potential
for greater growth of cash values. There are several types of universal life insurance policies
which include "interest sensitive" (also known as "traditional fixed universal life insurance"),
variable universal life (VUL), guaranteed death benefit, and equity indexed universal life
insurance.

A universal life insurance policy includes a cash value. Premiums increase the cash values,
but the cost of insurance (along with any other charges assessed by the insurance company)
reduces cash values. However, with the exception of VUL, interest is credited on cash values
at a rate specified by the company and may also increase cash values. With VUL, cash values
will ebb and flow relative to the performance of the investment subaccounts the policy owner
has chosen. The surrender value of the policy is the amount payable to the policyowner after
applicable surrender charges, if any.

Universal life insurance addresses the perceived disadvantages of whole life – namely that
premiums and death benefit are fixed. With universal life, both the premiums and death
benefit are flexible. Except with regards to guaranteed death benefit universal life, this
flexibility comes at a price: reduced guarantees.

Depending on how interest is credited, the internal rate of return can be higher because it
moves with prevailing interest rates (interest-sensitive) or the financial markets (Equity

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Indexed Universal Life and Variable Universal Life). Mortality costs and administrative
charges are known. And cash value may be considered more easily attainable because the
owner can discontinue premiums if the cash value allows it

Option A is often referred to as a level death benefit. Generally speaking, the death benefit
will remain level for the life of the insured and premiums are expected to be lower than
policies with an Option B death benefit.

Option B pays the face amount plus the cash value. If cash values grow over time, so would
the death benefit which is payable to the insured's beneficiaries. If cash values decline, the
death benefit would also decline. Presumably option B death benefit policies require greater
premium than option A policies.
3. Limited-pay:

Another type of permanent insurance is Limited-pay life insurance, in which all the premiums
are paid over a specified period after which no additional premiums are due to keep the
policy in force. Common limited pay periods include 10-year, 20-year, and paid-up at age 65.

4. Endowments:

Endowments are policies in which the cash value built up inside the policy, equals the death
benefit (face amount) at a certain age. The age this commences is known as the endowment
age. Endowments are considerably more expensive (in terms of annual premiums) than either
whole life or universal life because the premium paying period is shortened and the
endowment date is earlier.

In the United States, the Technical Corrections Act of 1988 tightened the rules on tax shelters
(creating modified endowments). These follow tax rules as annuities and IRAs do.

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  Accidental Death
Accidental death is a limited life insurance that is designed to cover the insured when they
pass away due to an accident. Accidents include anything from an injury, but do not typically
cover any deaths resulting from health problems or suicide. Because they only cover
accidents, these policies are much less expensive than other life insurances. It is also very
commonly offered as "accidental death and dismemberment insurance", also known as an
AD&D policy. In an AD&D policy, benefits are available not only for accidental death, but
also for loss of limbs or bodily functions such as sight and hearing, etc. Accidental death and
AD&D policies very rarely pay a benefit; either the cause of death is not covered, or the
coverage is not maintained after the accident until death occurs. To be aware of what
coverage they have, an insured should always review their policy for what it covers and what
it excludes. Often, it does not cover an insured who puts themselves at risk in activities such
as: parachuting, flying an airplane, professional sports, or involvement in a war (military or
not).

Accidental death benefits can also be added to a standard life insurance policy as a rider. If
++this rider is purchased, the policy will generally pay double the face amount if the insured
dies due to an accident. This used to be commonly referred to as double indemnity coverage.
In some cases, some companies may even offer triple indemnity coverage

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  Related Life Insurance Products
Riders are modifications to the insurance policy added at the same time the policy is issued.
These riders change the basic policy to provide some feature desired by the policy owner. A
common rider is accidental death, which used to be commonly referred to as "double
indemnity", which pays twice the amount of the policy face value if death results from
accidental causes, as if both a full coverage policy and an accidental death policy were in
effect on the insured. Another common rider is premium waiver, which waives future
premiums if the insured becomes disabled. Joint life insurance is either a term or permanent
policy insuring two or more lives with the proceeds payable on the first death or second
death. Survivorship life: is a whole life policy insuring two lives with the proceeds payable
on the second (later) death. Single premium whole life: is a policy with only one premium
which is payable at the time the policy is issued. Modified whole life: is a whole life policy
that charges smaller premiums for a specified period of time after which the premiums
increase for the remainder of the policy. Group life insurance: is term insurance covering a
group of people, usually employees of a company or members of a union or association.
Individual proof of insurability is not normally a consideration in the underwriting. Rather,
the underwriter considers the size and turnover of the group, and the financial strength of the
group. Senior and preneed products: Insurance companies have in recent years developed
products to offer to niche markets, most notably targeting the senior market to address needs
of an aging population. Many companies offer policies tailored to the needs of senior
applicants. Preneed (or prepaid) insurance policies: are whole life policies that, although
available at any age, are usually offered to older applicants as well. This type of insurance is
designed specifically to cover funeral expenses when the insured person dies. In many cases,
the applicant signs a prefunded funeral arrangement with a funeral home at the time the
policy is applied for.

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  Investment policies
Some policies allow the policyholder to participate in the profits of the insurance company
these are with-profits policies. Other policies have no rights to participate in the profits of the
company, these are non-profit policies.

With-profits policies are used as a form of collective investment to achieve capital growth.
Other policies offer a guaranteed return not dependent on the company's underlying
investment performance; these are often referred to as without-profit policies which may be
construed as a misnomer.

 Investment Bonds
Pensions: Pensions are a form of life assurance. However, whilst basic life assurance,
permanent health insurance and non-pensions annuity business includes an amount of
mortality or morbidity risk for the insurer, for pensions there is a longevity risk.

A pension fund will be built up throughout a person's working life. When the person retires,
the pension will become in payment, and at some stage the pensioner will buy an annuity
contract, which will guarantee a certain pay-out each month until death.

 Annuities
An annuity is a contract with an insurance company whereby the insured pays an initial
premium or premiums into a tax-deferred account, which pays out a sum at pre-determined
intervals. There are two periods: the accumulation (when payments are paid into the account)
and the annuitization (when the insurance company pays out). IRS rules restrict how you take
money out of an annuity.

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NEED FOR LIFE INSURANCE
The need for life insurance comes from the need to safeguard our family. If you care for your
family’s needs you will definitely consider insurance. Today insurance has become even
more important due to the disintegration of the prevalent joint family system, a system in
which a number of generations coexisted in harmony, a system in which a sense of financial
security was always there as there were more earning members. Times have changed and the
nuclear family has emerged. Apart from other pitfalls of a nuclear family, a high sense of
insecurity is observed in it today besides, the family has shrunk. Needs are increasing with
time and fulfillment of these needs is a big question mark. How will you be able to satisfy all
those needs? Better lifestyle, good education, your long desired house. But again - you just
cannot fritter away all your earnings. You need to save a part of it for the future too - a wise
decision. This is where insurance helps you. Factors such as fewer number of earning
members, stress, pollution, increased competition, higher ambitions etc are some of the
reasons why insurance has gained importance and where insurance plays a successful role.

From the very beginning of your life, to your retirement age insurance can take care of all
your needs. Your child needs good education to mould him into a good citizen. After his
schooling he need to go for higher studies, to gain a professional edge over the others - a
necessity in this age where cut-throat competition is the rule. His career needs have to be
fulfilled. Insurance is a must also because of the uncertain future adversities of life.
Accidents, illnesses, disability etc are facts of life which can be extremely devastating. Other
than the hospital lisation, medication bills these may run up it’s the aftermath of the incident,
the physical well being of the individual that has to be taken into consideration. Will the
individual be in a position to earn as before? A pertinent question. But what if he is not?
Disability can be taken care of by insurance. Your family will not have to go through the
grind due to your present inability. Moreover, retirement, an age when every individual has
almost fulfilled his responsibilities and looks forward to relaxing can be painful if not
planned properly. Have you considered the increasing inflation and taxes? Will your
investment offer you attractive returns under such circumstances? Will it take care of your
family after you? An insurance policy will definitely take care of these and a lot more.
Insurance today has opened up new vistas for every section of society. Even for the village
farmer insurance holds a lot of potential. Considering how dependent our agricultural system
is on the monsoon, the farmer sees a dim future. The uncertainty of the monsoon too can be
taken care of by insurance. Looking at the advantages of an insurance policy a number of
farmers have gone in for insurance. Insurance has become a necessity today. It provides
timely financial as also rewards with bonuses.

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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 all insurable
persons in the country and providing them adequate financial cover against death at a
reasonable cost.
Maximize mobilization of people's 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 the 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 agents and employees of the Corporation a sense of
participation, pride and job satisfaction through discharge of their duties with
dedication towards achievement of Corporate Objective.

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Channels of Distribution

 Individual Agent: The individual agent has been the bedrock and the lynchpin in the
marketing of insurance, especially life insurance. The professional agent has been the
strongest link between the life insurer and the customer. The professional agent has
the onerous role of explaining the concepts, terms and conditions, benefits and
privileges of the insurance contract. He has to analyse the financial requirements and
risks faced by the customers and market insurance plans suited to the needs and
means of the customers. All insurance companies and life insurance companies in
particular, have recognized the paramount importance of this channel. The number of
agents has grown at a spectacular rate. The total number of agents on they roll is
11,03,047as on 31.03.2007 as against 10,52,283 as on 31.03.2006.

 Corporate Agents: The number of corporate agents has grown in recent years.
Corporate agent is a concept introduced with a view to taking advantage of the
presence of a large number of entities with a sizeable client base, contacts and good
will already operating in the market. With multi locations and a network of people
assisting them, these entities have a different structure and purpose. Hence their
existing network could be utilized to market insurance. The corporate agent could
thus be defined as a person - meaning a firm or company formed under the
Companies Act, 1956 or a banking company or a Bank/RRB or a co-operative society
registered under the Co-operative societies Act, 1912 or a panchayat or a NGO/MFI
covered under the Co-op. Societies Act or a NBFC registered with RBI or any other
institution. They assist greatly in the spread of insurance through the greater reach of
the institutions.

 Brokers: Brokers are permitted to sell products of more than one insurer. Brokers
have been very predominant in the non-life arena. Large risks require quite
sophisticated expertise. Brokers have played a very key role in this area both in
selling products and in servicing of Insurance claims. Brokers have now also entered
the Life Insurance market.

 Bancassurance: Bancassurance is developing as an important channel in India. This

is due to the large reach and customer base of banks in both urban and rural areas in
India. The persistency rate in Bancassurance, due to the continuous contact with the
client is better than in other channels. The ease of payment of premium and the
facility of maturity/claim payments through the bank account make it a customer
friendly channel.

20 | P a g e
 Referrals: This is a new concept very similar to getting a prospecting list and leads to
affect sales with customers. It is evident that in addition to banks, there could be
various other entities which could act as a referral provider due to the large database
of members/clients, like credit cardholders association members, society members etc.
In short, such institutions could share or market their database to provide leads to the
intermediaries to sell insurance products. The referral provider is not a licensed
intermediary, but can be regulated by the insurance Regulator, through approval of the
terms of the agreement, between the insurer and the referral provider.

 Direct Marketing: In the new technological environment, new innovative marketing

systems have evolved. The use of inter-net, web based sales, e- marketing, telecalling,
mobile SMS have made giant strides in reaching out to customers. This isan emerging
channel which in future may grow in size and proportion of sales. This channel
requires active regulation which should be on issues of transparency, disclosure,
privacy, contract, TRAI guidelines etc. It would be necessary to give full complete
information through soft copies of proposal forms, schedules, policies etc.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-line 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, Ahmadabad, Bangalore, Chennai, Hyderabad,
Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy
access to its policy holders, LIC has launched

 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.

21 | P a g e
Awards Won By LIC Of India
Some of the recent awards received by LIC are
 LIC has been ranked :” Number One Trusted Service Brand” in the Economic Times
Brand Equity Survey for the year 2008 for the 5th consecutive year, with overall
ranking across all categories going up from 27th to 12th.
 Readers Digest “Trusted Brand”2008 in the platinum category.
 SKOCH Challengers Award 2008 for our Micro Insurance Product Jeevan Madhur.
 Customer & Brand Loyalty Award 2008 in the Life Insurance category fromIndia
times Mindscape.
 Rated as the “Most Preferred Life Insurance Company of the year” at the CNBC
Awaaz Consumer Awards 2007 third time in a row.
 “Conferred Peacock Award “ for Excellence in Corporate Governance
 Conferred Outlook Money NDTV profit-“Best Life Insurer Award 2007”
 “Web 18- Genius of the Web award -2007 “For the best website in
InsuranceCategory.
 Adjusted the” Best Life Insurance Company of the year”- at the Second NDTV Profit
Business Leadership Awards-2007.

22 | P a g e
ADVANTAGES & DISADVANTAGES

Life Insurance is one of the most widely available and used financial products being used by
people. But before buying various types of life insurance such as variable, term life insurance
not many people do a pros and cons analysis. This is quite sad since it is one of the biggest
yearly expenses and is one of the most important security assets for our family in case of
death or serious injury. Life Insurance has different meanings in different countries as well.
In India Life Insurance is mostly looked upon as an investment product. Most people buy
insurance as an investment product leading to the wide prevalence of hybrid insurance
investment products like ULIPs , Child Plans etc. It is easily found that these hybrid products
are wasteful since it would be cheaper to buy separate investment and insurance products.
The main reason for the misspelling is the financial illiteracy and ignorance about the
advantages and disadvantages of life insurance and its products .Life Insurance Companies
also don’t do a very good job in educating people about the right type of product as it is more
profitable for them to sell the products which are disadvantageous to the customers. So we
have a case where Life Insurance products advantages and disadvantages are not known and
understood by most people around the world.

 Advantages of Life Insurance

1) Life Insurance is not an Investment:- Life Insurance is an Expense and not an Asset. It
is an expense just like your health insurance to make sure in case of serious illness you are
covered and not in a position to pay the costs of your illness leading to your life ending in a
bad manner. Life Insurance makes sure that your dependents can lead a decent life
economically despite your death. This is the main purpose and advantage of life insurance

2)Tax Advantage :– A number of countries allow you to offset the premiums that you pay
for you life insurance in your taxable income. Also the maturity amount that you get is also
not taxable in a number of places. Insurance is widely used by financial advisors to reduce
your tax burden.

3) Advantage Of Term Insurance :- While Insurance companies sell a wide variety of

insurance products like term variable universal insurance most are complex and intended to
fleece customers. Term Insurances is the best life insurance product for its simplicity and
cheapness. It gives you a lump sum amount in case of death and has no clause and conditions.
Its very simple to understand and the cheapest insurance product as well.

4) Flexibility in Coverage :- Life Insurance is supposed to cover you till the time you have
enough of a corpus for your dependents. You can take life insurance for 5,10,15,20 year. This
also depends on your age but you get the basic idea. Suppose you have $50,000 in savings
and you need another $450,000 for your family to be comfortable in case of your death. If
you save $50,000 every year then it means that you need 9 more years to get to your target .In
that case you can take life insurance for 9 years.

23 | P a g e
5) Government Regulation provides Safety: – The government heavily regulates the
insurance sector making sure that your insurance company has enough assets to cover your
liability. This means that you have the peace of mind that in case of your death the money
will be given out by the life insurance company and it does not go bankrupt. Governments
make sure that insurance companies don’t fail like banks. Even if they do their liabilities are
taken over by the government.

6) Universal and Variable Life Insurance Advantages :– While in my opinion both of

these 2 types of insurance are a complete waste of time and money they offer the advantage
in some specific niche cases. These offer the option of investment and insurance by giving
you an interest in the cash value of your insurance. Variable insurance allows you to change
the premiums on your life insurance. However the complications of calculating mortality and
investment in a hybrid product is beyond the intelligence of most people in my opinion and
you are better staying away from these products.

 Disadvantages of Life Insurance

1) Uncomfortable insurance product:-The Cons of a Life Insurance chosen carefully is

almost negligible. However the disadvantage of Life Insurance arises when it is used
as an investment product. Insurance companies also promote these as people are
uncomfortable in paying premiums on which returns are uncertain. They think that if
you are paying for insurance you must get back something. This is because of the
psychological make up of humans where we underestimate the chances of our demise.

2) Buying Life Insurance when you have no Need: – People buy insurance when they
have no need for example an old woman buying life insurance.Also the example of
buying life insurance for a very long time period till you are 80 years old.At that age
you have no need since you would have no dependents and earning power as well.

3) Buying Complex Life Insurance Products:- like ULIPs, Endowment, Child Plans
etc which give sub optimal returns – Millions of people every year buy insurance
products without understanding it. Most of the complex products give suboptimal
returns and have no suitability for the buyers. Agents frequently give bad advice to
get more commissions. Companies also make more money by selling complex
products which people don’t understand.

4) Buying Expensive Policies – People have little clue and don’t compare life insurance
products even from the same provider..Buying Life Insurance is not Rocket Science
however this trillion dollar industry has made it complicated.There are hundreds of
types of insurance and products which makes choosing a difficult thing for a
person.But keeping it simple like buying term insurance for your insurance needs and
other financial assets for your investment will keep it simple.

24 | P a g e
Tax Benefits

INCOME TAX GROSS ANNUAL HOW MUCH TAX CAN YOU SAVE?
SECTION SALARY

Sec. 80C Across All income Slabs Upto Rs. 33,990 saved on investment of
Rs. 1,00,000.

Sec. 80 CCC Across all income slabs. Upto Rs. 33,990 saved on Investment of
Rs.1,00,000.

Sec. 80 D Across all income slabs Upto Rs. 3,399 saved on Investment of
Rs. 10,000.

TOTAL SAVINGS
POSSIBLE
Rs37,389

Rs. 33,990 under Sec. 80C and under Sec. 80 CCC , Rs.3,399 under
Sec. 80 D, calculated for a male with gross annual income
exceeding Rs. 10,00,000.
Sec. 10 (10)D Under Sec. 10(10D), the benefits you receive are completely
tax-free, subject to the conditions laid down therein.

25 | P a g e
MARKETING STRATEGIES IN LIFE INSURANCE
BUSINESS

Concept of Marketing

There are many definitions of marketing. The better definitions are focused upon customer
orientation and satisfaction of customer needs:-

 According to Philip Kotler - Marketing is the social process by which individuals

and groups obtain what they need and want through creating and exchanging products
and value with others.

 According to P.F Drucker - Marketing is not only much broader than selling, it is
not a specialized activity at all It encompasses the entire business. It is the whole
business seen from the point of view of the final result, that is, from the customer's
point of view. Concern and responsibility for marketing must therefore permeate all
areas of the enterprise.

The Sales Concept of Marketing

By the early 1930's however, mass production had become commonplace, competition had
increased, and there was little unfulfilled demand. Around this time, firms began to practice
the sales concept (or selling concept), under which companies not only would produce the
products, but also would try to convince customers to buy them through advertising and
personal selling. Before producing a product, the key questions were.3
The sales concept paid little attention to whether the product actually was needed; the goal
simply was to beat the competition to the sale with little regard to customer satisfaction.
Marketing was a function that was performed after the product was developed and produced,
and many people came to associate marketing with hard selling. Even today, many people use
the word "marketing" when they really mean sales.

26 | P a g e
 “Modern Concept of Marketing”

Old concept Newconcept

Product /service Identify customers needs

Sales Product/Service

Profit maximization through

Sale
sales

Profit through customer

satisfaction

Customer welfare
27 | P a g e
 “4P’s Of Marketing”

Product
planning

Physical Pricing
distribution Customer
policies

Promotion
policies

4 P’s:
 Product planning.
 Pricing policies.
 Physical distribution.
 Promotion policies

28 | P a g e
MARKETING MIX FOR INSURANCE COMPANIES

The marketing mix is the combination of marketing activities that an organization engages in
so as to best meet the needs of its targeted market. The Insurance business deals in selling
services and therefore due weight age in the formation of marketing mix for the Insurance
business is needed. The marketing mix includes sub-mixes of the 7 P‘s of marketing i.e. the
product, its price, place, promotion, people, process & physical attraction. The above
mentioned 7 P‘s can be used for marketing of Insurance products, in the following manner:

1. PRODUCT
A product means what we produce. If we produce goods, it means tangible product
and when we produce or generate services, it means intangible service product. A
product is both what a seller has to sell and a buyer has to buy. Thus, an Insurance
company sells services and therefore services are their product. In India, the Life
Insurance Corporation of India (LIC) and the General Insurance Corporation (GIC)
are the two leading companies offering insurance services to the users. Apart from
offering life insurance policies, they also offer underwriting and consulting services.
When a person or an organization buys an Insurance policy from the insurance
company, he not only buys a policy, but along with it the assistance and advice of the
agent, the prestige of the insurance company and the facilities of claims and
compensation. It is natural that the users expect a reasonable return for their
investment and the insurance companies want to maximize their profitability. Hence,
while deciding the product portfolio or the product-mix, the services or the schemes
should be motivational. The Group Insurance scheme is required to be promoted, the
Crop Insurance is required to be expanded and the new schemes and policies for the
villagers or the rural population are to be included. The Life Insurance Corporation
has intensified efforts to promote urban savings, but as far as rural savings are
concerned, it is not that impressive. The introduction of Rural Career Agents Scheme
has been found instrumental in inducing the rural prospects but the process is at infant
stage and requires more professional excellence. The policy makers are required to
activate the efforts. It would be prudent that the LIC is allowed to pursue a policy of
direct investment for rural development. Investment in Government securities should
be stopped and the investment should be channelized in private sector for maximizing
profits. In short, the formulation of product-mix should be in the face of innovative
product strategy. While initiating the innovative process it is necessary to take into
consideration the strategies adopted by private and foreign insurance companies.

29 | P a g e
 2. PRICING

In the insurance business the pricing decisions are concerned with:

 The premium charged against the policies,
 Interest charged for defaulting the payment of premium and credit facility, and
 Commission charged for underwriting and consultancy activities.

With a view of influencing the target market or prospects the formulation of pricing strategy
becomes significant. In a developing country like India where the disposable income in the
hands of prospects is low, the pricing decision also governs the transformation of potential
policyholders into actual policyholders. The strategies may be high or low pricing keeping in
view the level or standard of customers or the policyholders. The pricing in insurance is in
the form of premium rates. The three main factors used for determining the premium rates
under a life insurance plan are mortality, expense and interest. The premium rates are revised
if there are any significant changes in any of these factors.
 Mortality(deaths in a particular area):

When deciding upon the pricing strategy the average rate of mortality is one of the main
considerations. In a country like South Africa the threat to life is very important as it is
played by host of diseases.
 Expenses:

The cost of processing, commission to agents, reinsurance companies as well as

registration are all incorporated into the cost of instalments and premium sum and forms
the integral part of the pricing strategy.
 Interest:

The rate of interest is one of the major factors which determines people‘s willingness to
invest in insurance. People would not be willing to put their funds to invest in insurance
business if the interest rates provided by the banks or other financial instruments are
much greater than the perceived returns from the insurance premiums.

30 | P a g e
3. PROMOTION
The insurance services depend on effective promotional measures. In a country like
India, the rate of illiteracy is very high and the rural economy has dominance in the
national economy. It is essential to have both personal and impersonal promotion
strategies. In promoting insurance business, the agents and the rural career agents play
an important role. Due attention should be given in selecting the promotional tools for
agents and rural career agents and even for the branch managers and front line staff.
They also have to be given proper training in order to create impulse buying.
Advertising and Publicity, organization of conferences and seminars, incentive to
policyholders are impersonal communication. Arranging Kittens, exhibitions,
participation in fairs and festivals, rural wall paintings and publicity drive through the
mobile publicity van units would be effective in creating the impulse buying and the
rural prospects would be easily transformed into actual policyholders

4. PHYSICAL DISTRIBUTION

Distribution is a key determinant of success for all insurance companies. Today, the
nationalized insurers have a large reach and presence in India. Building a distribution
network is very expensive and time consuming. If the insurers are willing to take
advantage of India‘s large population and reach a profitable mass of customers, then
new distribution avenues and alliances will be necessary. Initially insurance was
looked upon as a complex product with a high advice and service component. Buyers
prefer a face-to-face interaction and they place a high premium on brand names and
reliability. As the awareness increases, the product becomes simpler and they become
off-the-shelf commodity products. Today, various intermediaries, not necessarily
insurance companies, are selling insurance. For example, in UK, retailer like Marks &
Spencer sells insurance products. The financial services industries have successfully
used remote distribution channels such as telephone or internet so as to reach more
customers, avoid intermediaries, bring down overheads and increase profitability
Today, it is one of the largest motor insurance operators. Technology will not replace
a distribution network though it will offer advantages like better customer service.
Finance companies and banks can emerge as an attractive distribution channel for
insurance in India. In Netherlands, financial services firms provide an entire range of
products including bank accounts, motor, home and life insurance and pensions. In
France, half of the life insurance sales are made through banks. In India also, banks
hope to maximize expensive existing networks by selling a range of products. It is
anticipated that rather than formal ownership arrangements, a loose network of
alliance between insurers and banks will emerge, popularly known as banc assurance.
Another innovative distribution channel that could be used is the non-financial
organizations. For an example, insurance for consumer items like fridge and TV can
be offered at the point of sale. This increases the likelihood of insurance sales.
Alliances with manufacturers or retailers of consumer goods will be possible and
insurance can be one of the various incentives offered.

31 | P a g e
CONCEPTUAL DISCUSSION

Table of Life Insurance Companies market share. This is based on the New Business
premium collected in the year. Renewal premiums have not been included in these
calculations.
Company Name 2012-13 2013-14 2014-15 2015-16 2016-17
LIC 71.80% 71.40% 75.50% 69.30% 70.50%
SBI Life 5.70% 4.80% 4.20% 4.90% 5.10%
ICICI Prudential 3.90% 4.50% 3.10% 4.70% 4.90%
HDFC Life 3.40% 4.10% 3.40% 4.80% 4.70%
Bajaj Allianz 2.40% 2.80% 2.20% 2.40% 2.10%
Max Life 1.70% 1.80% 1.90% 2.30% 2.10%
Birla Sun Life 1.70% 1.70% 1.40% 1.70% 1.60%
Kotal Life 1.00% 1.10% 1.10% 1.40% 1.60%
Reliance Nippon Life 1.60% 1.30% 1.60% 1.80% 1.10%
India First 0.90% 1.20% 1.40% 1.40% 1.10%
PNB Metlife 0.90% 0.80% 0.60% 0.70% 0.70%
Canara HSBC 0.60% 0.60% 0.50% 0.40% 0.60%
Tata AIA 0.80% 0.50% 0.40% 0.30% 0.50%
DHFL Prameria 0.10% 0.10% 0.10% 0.50% 0.50%
Shriram Life 0.30% 0.40% 0.30% 0.40% 0.50%
Star Union Dai-ichi 0.80% 0.70% 0.50% 0.60% 0.50%
Exide Life 0.60% 0.60% 0.50% 0.60% 0.50%
IDBI Federal 0.30% 0.30% 0.30% 0.40% 0.40%
Bharti AXA 0.20% 0.20% 0.30% 0.40% 0.40%
Aviva 0.70% 0.60% 0.50% 0.50% 0.20%
Future Generali Life 0.30% 0.20% 0.20% 0.20% 0.20%
Edelweiss Tokio 0.00% 0.00% 0.10% 0.10% 0.10%
Aegon Life 0.20% 0.10% 0.10% 0.20% 0.10%
Sahara Life 0.10% 0.10% 0.10% 0.00% 0.00%

LIC Market Share

80.00%
Percentage

75.00%
70.00%
65.00%
2012-13 2013-14 2014-15 2015-16 2016-17
YOY Growth

32 | P a g e
NAV FOR THE DATE : 27/01/2018
Plan Name(Number) Launch Date

Face NAV as Repurchase Sale

Fund SFIN No.
Value on date Value Value

FUTURE PLUS (172) Launch Date:04/03/2005

Balanced ULIF003040305LICFUT+BAL512 10 29.4262 29.4262 29.4262

Bond ULIF001040305LICFUT+BND512 10 24.0913 24.0913 24.0913

Growth ULIF004040305LICFUT+GRW512 10 45.4734 45.4734 45.4734

Income ULIF002040305LICFUT+INC512 10 29.4585 29.4585 29.4585

JEEVAN PLUS (173) Launch Date:18/10/2005

Balanced ULIF003181005LICJVN+BAL512 10 24.8826 24.8826 24.8826

Bond ULIF001181005LICJVN+BND512 10 24.2673 24.2673 24.2673

Growth ULIF004181005LICJVN+GRW512 10 40.5398 40.5398 40.5398

Secured ULIF002181005LICJVN+SEC512 10 25.1504 25.1504 25.1504

MONEY PLUS (180) Launch Date:20/12/2006

Balanced ULIF003201206LICMNY+BAL512 10 24.7902 24.7902 24.7902

Bond ULIF001201206LICMNY+BND512 10 24.7805 24.7805 24.7805

Growth ULIF004201206LICMNY+GRW512 10 23.7479 23.7479 23.7479

Secured ULIF002201206LICMNY+SEC512 10 25.6493 25.6493 25.6493

33 | P a g e
NAV FOR THE DATE : 27/01/2018
Plan Name(Number) Launch Date

Face NAV as Repurchase Sale

Fund SFIN No.
Value on date Value Value

MARKET PLUS (181) Launch Date:05/07/2006

Balanced ULIF003050706LICMKT+BAL512 10 29.4412 29.4412 29.4412

Bond ULIF001050706LICMKT+BND512 10 27.5986 27.5986 27.5986

Growth ULIF004050706LICMKT+GRW512 10 25.9925 25.9925 25.9925

Secured ULIF002050706LICMKT+SEC512 10 30.383 30.383 30.383

FORTUNE PLUS (187) Launch Date:23/08/2007

Balanced ULIF003230807LICFTN+BAL512 10 18.9071 18.9071 18.9071

Bond ULIF001230807LICFTN+BND512 10 22.5764 22.5764 22.5764

Growth ULIF004230807LICFTN+GRW512 10 22.2071 22.2071 22.2071

Secured ULIF002230807LICFTN+SEC512 10 23.1148 23.1148 23.1148

PROFIT PLUS (188) Launch Date:23/08/2007

Balanced ULIF003230807LICPFT+BAL512 10 30.7597 30.7597 30.7597

Bond ULIF001230807LICPFT+BND512 10 24.2904 24.2904 24.2904

Growth ULIF004230807LICPFT+GRW512 10 21.8119 21.8119 21.8119

Secured ULIF002230807LICPFT+SEC512 10 27.07 27.07 27.07

34 | P a g e
NAV FOR THE DATE : 27/01/2018
Plan Name(Number) Launch Date

Face NAV as Repurchase Sale

Fund SFIN No.
Value on date Value Value

MARKET PLUS - I (191) Launch Date:17/06/2008

Balanced ULIF003170608LICMK1+BAL512 10 20.8229 20.8229 20.8229

Bond ULIF001170608LICMK1+BND512 10 21.8506 21.8506 21.8506

Growth ULIF004170608LICMK1+GRW512 10 26.0093 26.0093 26.0093

Secured ULIF002170608LICMK1+SEC512 10 21.0949 21.0949 21.0949

MONEY PLUS - I (193) Launch Date:22/05/2008

Balanced ULIF003220508LICMY1+BAL512 10 26.411 26.411 26.411

Bond ULIF001220508LICMY1+BND512 10 25.2169 25.2169 25.2169

Growth ULIF004220508LICMY1+GRW512 10 28.5938 28.5938 28.5938

Secured ULIF002220508LICMY1+SEC512 10 28.2806 28.2806 28.2806

CHILD FORTUNE PLUS (194) Launch Date:01/11/2008

Balanced ULIF003011108LICCHF+BAL512 10 26.114 26.114 26.114

Bond ULIF001011108LICCHF+BND512 10 20.0507 20.0507 20.0507

Growth ULIF004011108LICCHF+GRW512 10 35.0108 35.0108 35.0108

Secured ULIF002011108LICCHF+SEC512 10 29.0656 29.0656 29.0656

35 | P a g e
NAV FOR THE DATE : 27/01/2018
Plan Name(Number) Launch Date

Face NAV as Repurchase Sale

Fund SFIN No.
Value on date Value Value

JEEVAN SAATHI PLUS (197) Launch Date:29/06/2009

Balanced ULIF003290609LICJST+BAL512 10 20.4288 20.4288 20.4288

Bond ULIF001290609LICJST+BND512 10 18.9663 18.9663 18.9663

Growth ULIF004290609LICJST+GRW512 10 20.6564 20.6564 20.6564

Secured ULIF002290609LICJST+SEC512 10 19.7495 19.7495 19.7495

WEALTH PLUS (801) Launch Date:09/02/2010

WealthPlus ULIF001090210LICWLT+FND512 10 15.7263 15.7263 15.7263

ENDOWMENT PLUS (802) Launch Date:20/09/2010

Balanced ULIF003200910LICEND+BAL512 10 18.948 18.948 18.948

Bond ULIF001200910LICEND+BND512 10 18.2633 18.2633 18.2633

Growth ULIF004200910LICEND+GRW512 10 20.7946 20.7946 20.7946

Secured ULIF002200910LICEND+SEC512 10 17.8498 17.8498 17.8498

PENSION PLUS (803) Launch Date:02/09/2010

Debt ULIF001020910LICPEN+DBT512 10 18.2372 18.2372 18.2372

Mixed ULIF002020910LICPEN+MIX512 10 18.567 18.567 18.567

SAMRIDHI PLUS (804) Launch Date:25/02/2011

Samridhi
ULIF001250211LICSMD+FND512 10 20.1827 20.1827 20.1827
Plus

36 | P a g e
NAV FOR THE DATE : 27/01/2018

Plan Name(Number) Launch Date

Face NAV as Repurchase Sale

Fund SFIN No.
Value on date Value Value

FLEXI PLUS (811) Launch Date:02/01/2013

Debt_Fund ULIF001180912LICFLX+DBT512 10 15.0939 15.0939 15.0939

Mixed_Fund ULIF002180912LICFLX=+MIX512 10 15.7102 15.7102 15.7102

NEW ENDOWMENT PLUS (835) Launch Date:19/08/2015

Balanced ULIF003201114LICNED+BAL512 10 13.1936 13.1936 13.1936

Bond ULIF001201114LICNED+BND512 10 12.2664 12.2664 12.2664

Growth ULIF004201114LICNED+GRW512 10 13.3823 13.3823 13.3823

Secured ULIF002201114LICNED+SEC512 10 12.9535 12.9535 12.9535

HEALTH PLUS (901) Launch Date:04/02/2008

Health Plus ULIF001040208LICHLT+FND512 10 21.7733 21.7733 21.7733

HEALTH PROTECTION PLUS (902) Launch Date:29/04/2009

Health
Protection ULIF001290409LICHPR+FND512 10 20.9371 20.9371 20.9371
Plus

37 | P a g e
Data analysis
Data analysis gives meaning to the data that has been collected. More than 51
respondents were given questionnaire by mail. After verification as to completeness of
collected questionnaire, samples were finalized. In the data having responses both male and
female. The majority of male is more than female. The majority of female is 13 & male is 37.

Q1] You want to invest in the LIC policy ?

 Figure 1

people response

10%

Yes

No

90%

Figure 1. We can invest 90% of people's LIC policies and 10% of people can not invest in
LICs policies.

38 | P a g e
Q2] Which policy do you want to open ?

 Figure 2

People Response

18%

Money Back Policy

43%
Life Insurance Policy
Tax Saving Policy

39%

Figure 2: 43% people want to invest in money back policy

39% people want to invest in life insurance policy

18% people want to invest in tax saving policy .

39 | P a g e
3] How much money can you put in the monthly ?

Figure 3

People Response

14%

39%
1000
14%
2000

3000

5000

33%

Figure 3: 39% people can pay 1000 rupees.

33% people can pay 2000 rupees.

14% people can pay 3000 rupees.

14% people can pay 5000 rupees.

40 | P a g e
4] How much wil be the payment period ?

Figure 4

People Response

16%

Monthly
44%
12%
Quarterly

Half Yearly

Yearly

28%

Figure 4: 44% of the people can make money on a MONTHLY basis.

28% of the people can make money on a QUARTERLY basis.

12% of the people can make money on a HALF YEARLY basis.

16% of the people can make money on a YEARLY basis.

41 | P a g e
Q5] What is the term of the policy ?

Figure 5

People Response

10%

35%
5 Years
27% 10 Years
20 Years
Above20 Years

29%

Figure : 35% people choose the 5years term of policy.

29% people choose the 10years term of policy.

27% people choose the 20years term of policy.

10% people choose the above 20 years term of policy.

42 | P a g e
Q6] What is your perception about LIC of india

Figure 6

People Response

8%

Positive

Negetive

92%

Figure 6 : 92% people perception about LIC of india is positive.

8% people perception about LIC of india is Negetive.

43 | P a g e
Q7]Give reasons for insuring with LIC

Figure 7

People Response

12%

35%
Company Profile
Brand
Public Sector
33%
Grievances

21%

Figure 7: 35% people insuring with LIC because company profile.

21% people insuring with LIC because brand .

33% people insuring with LIC because public sector.

12% people insuring with LIC because Grievances.

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Q8] Satisfaction level towards services offered by LIC

Figure 8

People Response

6%

10%

Satisfied
Fully Satisfied
Partially Satisfied
26% 58% Not Satisfied

Figure 8: 58% people satisfied services offered by LIC.

26% people fully satisfied services offered by LIC.

10% people partially satisfied services offered by LIC.

6% people not satisfied services offered by LIC.

45 | P a g e
Q9] Do LIC have complex formalities ?

Figure 9

People Response

41%
Yes

No

59%

Figure 9: 59% people satisfied with LIC formalities.

41% people not satisfied with LIC formalities.

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Q10] Undue delay in claim settlement process

Figure 10

People Response

39%

Yes
No

61%

Figure10 : 61% people satisfied with LIC claim process.

39% people not satisfied with LIC claim process.

47 | P a g e