Lic 1

LIC OF INDIA
A CASE STUDY ON LIC BRANCH SHIKARIPURA.

CONTENTS
Chapter-1
INTRODUCTION
 Introduction
 Objectives of the study
 Methodology
 Limitations of study
Chapter 2
COMPANY PROFILE
 Introduction
 History
 Growth and development
 Objective
 Importance
Chapter 3
BRANCH PROFILE
 About Branch
 Historical Back Ground
 Mission
 Vision
 Detail of Branch
 Organization Structure
 Branch Consist Several Officers
CHAPTER 4
POLICIES OF LIFE INSURANCE CORPORATION OF INDIA
 Basic Life Insurance Plans
 Term Assurance Plans
 Specific Plans for Children :
 Pension Plans
 Child Future Insurance Policy by LIC
Chapter 5
DATA ANALYSIS AND INTERPRETATION
Chapter 6
MAJOR FINDINGS, SUGGESTIONS AND CONCLUSIONS
ANNEXURE
 QUESTIONNAIRE
 BIBLIOGRAPHY
ATNCC, SHIVAMOGGA 1
Chapter-1
INTRODUCTION
 Introduction
 Objectives of the study
 Methodology
 Limitations of study
ATNCC, SHIVAMOGGA 2
Chapter 1
INTRODUCTION
An individual’s is inherent to differ each individuals needs and requirements
are different from that of the others. LIC’s insurance plans are policies that talk
to you individually and give you the most suitable options that can fit your
requirement.
Indian marketing and largely described as seller market. Demand is invariably

greater than supply purchasing power of mass and limited. More than 30% of
our population resides in villages and markets have got to capitalize rural
marketing opportunity. The consumers are ignorant, illiterate, unorganized and
hence weak bargaining power. Most of our business enterprises are still having
selling concepts. Which is product, oriented marketing approach. Bigger
business houses having national market are adopting integrated corporate
planning sound market planning as well strategic marketing planning have very
limited scope of present. A charge is taking place is the marketing environment
at a reasonable speed and money, consumer oriented marketing company are
beginning to realize the presser of competition and buyer market.
Need and Importance of the Study

This study was conducted as to know the perception of the buying LIC children
plans. This study helps to know the perception of the customers towards
various aspects like charges, professional service, reputation, etc. This also
helps to find the attitude to the staff towards the customers.
ATNCC, SHIVAMOGGA 3
OBJECTIVES OF THE STUDY
 To assess the customer’s perception towards LIC products.
 To know loyalty towards the service provides
 To analyze the effectiveness of the advertisement and promotional strategy
over the customer.
 To make a brief note about the LIC
 This project provides an intensive study about policy schemes of LIC.
 To conduct a survey to know about the importance of different policies.
 To asses the satisfaction/ dissatisfaction over products offer the LIC
METHODOLOGY
Source of Data Collection
Primary Data
Primary data are collected through interviewing the branch manager,
administrative officer and staff of Shikaripur branch. I have also contacted
some agents to know the other relevant information of the project.
Secondary Data
Secondary data is collected through the internet medium and from the
company’s Broachers, articles and subject oriented books.
Sampling Design
Sampling element sampling units are customers of life insurance Corporation
of India. Sampling size the size of the sample is 50 respondents
ATNCC, SHIVAMOGGA 4
LIMITATIONS OF STUDY
Some of the major limitations of study are mentioned below
 The survey work was conducted in Shikaripura and near by areas only. It
can not cover preference of other region.
 The sample size taken for the survey was 50 because of the limited time
period there is change of error in data analysis.
 There is a chance of mistake in the answer because of the time limited
knowledge of respondents.
 There is also possibility of giving wrong answer by respondents because of
mood of customer and due to the familiarity they can not express their view
correctly.
ATNCC, SHIVAMOGGA 5
Chapter 2
COMPANY PROFILE
 Introduction
 History
 Growth and development
 Objective
 Importance
ATNCC, SHIVAMOGGA 6
Chapter 2
COMPANY PROFILE
INTRODUCTION OF INSURANCE
Insurance Industry has always been a growth oriented industry globally. ON
the Indian scene too, the insurance industry has always recorded noticeable
growth vis-à-vis other Indian industries, The Triton general Insurance Co- Ltd
was the first general insurance company to be established in India in 1850.
Which was a wholly British- owned company? The first general insurance
company to be setup by an Indian was Indian Mercantile Insurance co- Ltd.
Which was established in 1907? There emerged many a player on the Indian
scene there after, The general insurance business was nationalized after the
promulgation of general Insurance Business (Nationalization) Act, 1972. The
post nationalization general insurance business was undertaken by the general
Insurance corporation of India (GIC) and its 4 subsidiaries:-
1. Oriental Insurance company Limited;
2. New India Assurance company Limited;
3. National Insurance Company Limited;
4. United India Insurance company Limited;
The life Insurance corporation (LIC) was established on 01-09-1956 and had
been the sole corporation to write the life Insurance business in India.
The Indian insurance industry saw a new sun when the insurance regulatory
and Development authority (IRDA) invited the applications for registration as
insurance in August, 2000. With the liberalization and opening up of the sector
ATNCC, SHIVAMOGGA 7
to private players, the industry has presented promising prospects for the
coming future. The transition has also resulted into introduction of ample
opportunities for the professionals including chartered Accountants.
What is Insurance?
The business of insurance is related to the protection of the economic values of
assets. Every asset has a value. The asset would have been created through the
efforts of the owner. The asset is valuable to the owner, because he expects to
get some benefits from it. It is a benefit because it meets some of his needs.
The benefits may be an income or in some other firm. In the case of a factory
or a cow, the product generated by it is sold and income is generated. In the
case of a motor car, it provides comfort and convenience in transportation.
There is no direct income. Both are assets and provide benefits.
Brief History of Insurance

The story of insurance is probably as old as the story of mankind. The same
instinct that prompts modern businessmen 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
ATNCC, SHIVAMOGGA 8
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 company 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 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 Assurance at Lahore were established in 1906. In 1907, 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.
The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force asRs.22.44 crore, it
ATNCC, SHIVAMOGGA 9
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.
History of LIC Insurance corporation of INDIA

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
ATNCC, SHIVAMOGGA 10
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, 109
divisional offices, 8 zonal offices, 992 satellite offices and the Corporate office.
LIC’s Wide Area Network covers 109 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 Centers 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 the liberalized 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 has 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.
Nationalization
In 1955, parliamentarian Amol Barate raised the matter of insurance fraud by
owners of private insurance agencies. In the ensuing investigations, one of
India's wealthiest businessmen, Sachin Devkekar, owner of the Times of India
newspaper, was sent to prison for two years.
Eventually, the Parliament of India passed the Life Insurance of India Act on
June 19, 1956 creating the Life Insurance Corporation of India, which started
operating in September of that year. It consolidated the life insurance business
of 245 private life insurers and other entities offering life insurance services,
this consisted of 154 life insurance companies, 16 foreign companies and 75
provident companies. The 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 life insurance.
OBJECTIVES
 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.
IMPORTANCE
Life Insurance is considered to be an important part of an individual’s, not
necessarily to accumulate wealth, but to feel financially secure. Other then this
when you opt for a life insurance policy you enjoy other benefits also, like tax-
deduction options, and in some cases long term capital gains. What is
important when you opt for a policy is the term and plan related to that
particular policy. Always remember Life Insurance is primarily made keeping
your family and those who are dependent on you in mind.
LIFE INSURANCE CORPORATION OF INDIA

Provides security and safety
Life insurance provides safety and security to life of human being, who are
insured. Life insurance payment is made when death occurs or the term of
insurance is expired. The loss to family at a premature death and payment in
old age are adequately provided by insurance. The insurance provides safety
and security against the loss of earning at death or old age.
Life Insurance Corporation of India Eliminates Dependency
At the death of husband or father the destruction of family need no elaboration.
The family would suffer a lot. It brings reduced standard of living and the
suffering may go to any extent of begging from relatives, neighbors or friends.
The economic independence of the family is reduced or some times last totally,
what can be more condition than this that the wife and children are looking
others more benevolent than the husband and father. In absence of protection
against such dependency the life insurance is here to assist them and provides
adequate amount at the time of sufferings.
Life insurance corporation of India encourages savings

The elements of protection and investment are present in the life insurance.
Most of life policies elements of savings predominate. These policies combine
the programmes of insurable savings. The savings with Life Insurance
corporation of India has certain advantage.
Systematic savings is possible because regular premiums are required to be
compulsory paid. The savings with a bank in voluntary and one can easily
omit a month or two and then abandon the program entirely.
1. In life insurance of India the deposited premium cannot be withdrawn easily
before the expiry of the term of the policy.
2. In life insurance of India will pay policy money irrespective of the premium
deposited while in case of bank deposit, only the deposited amount along
with interest are paid. Thus LIC provides the wished amount of insurance
and the bank provides only the deposited amount.
LIC Provides profitable investment
Individual unwilling or unable to handle their own funds have been pleased to
find an outlet for their investment in LIC Endowment policies, Multipurpose
policies, deferred annuities are certain better form of investment. The element
of investment i.e., regular savings capital formation and return of the capital
along with certain additional return are perfectly observed. In LIC an
individual from his own capacity cannot invest regularly with enough of
security and profitability. The LIC fulfills all these requirements with a lower
cost.
Life insurance corporation of India fulfills the need of a person

1. Family Needs
Death is certain, but the time is uncertain. So there is uncertainty of the time
when the sufferings and financial stringencies may be a more pathetic fight in
the world to see the wife and children of man looking for someone more
considerate avid benevolent than the husband or the father. Who left them un
provided. Therefore, the provision for children up to their reaching earning
period and for widow up to the long life should be made. Any other provision
except life insurance requirement of the family whole LIC policies is the better
means of meeting such requirement.
2. Old age needs:

The provision for old age is required where the person is surviving more than
his earning period. The reduction of income in old age is serious to the person
and his family. If no other family member starts earning they will be left with
nothing and if there is not property, it would be more piteous state. The LIC
provides old age funds along with the protection of the family by issuing
various policies.
3. Special Need
There are certain special requirements of the family which is fulfilled by the
earning member of the family. If the member becomes disable to earn the
income due to old age or death. Those need may remain unfulfilled and the
family will suffer.
NEED OF EDUCATION
There are certain LIC policies and annuities which are useful for education of
the children irrespective of the death or survival of the father or guardian.
MARRIAGE
The daughter may remain unmarried in case of father’s death or in case of
inadequate provision for meeting the expenses of marriage. The LIC can
provide fund for the marriage if policy is taken for the purpose.
SETTLEMENT OF CHILDREN
After education, settlement of children takes time and in absence of adequate
funds, the children cannot be well placed and all the education goes to waste.
LIC PROTECTED WEALTH OF THE SOCIETY
The loss of a particular wealth can be protected with LIC of India. LIC
provides loss of human wealth. The human material if it is strong educated and
carefree will generate more income with the advancement of the society, the
wealth of the society attracts more hazardous and so new types of insurance
are also invented to protect them against the po0ssible losses. Each and every
member will have financial security against old age, death, damage, destruction
and disappearance of his wealth including the life wealth. Through prevention
of economic losses, instance protects the society against degradation. Through
stabilization and expansion of business and industry, the economic security is
maximized. The present future and potential human and property resources are
well protected. The children are getting expertise education working classes are
free from botherations and older people are guiding at ease. The happiness and
prosperity are observed every where with the help of LIC.
LIC helps to reduce inflation

The insurance reduces the inflationary resource in two ways. First, by
extact5ing money in supply to the amount of premium collected and secondly,
by providing sufficient funds for production narrow down the inflationary gap
with reference to Indian contract it has been observed that about 5 percent of
the money in supply was collected in form of premium. The share of premium
contributed to total investment of the country was about 10 percent. The two
main causes of inflation, namely, increased money in supply and decreased
production are properly by Life Insurance Corporation.
Principles of Life Insurance
Life Insurance contracts
1. A life insurance policy promises that the insurer will pay to the policy
holder a certain sum of money if the person insured dies or any other
specified contingency happens. It is a contract, which in the meaning of the
Indian contract Act, 1872. A contract is an agreement between two or more
parties to do, or not to do, so as to create a legally biding relationship. A
simple contract must have the following essentials.
 After and acceptance
 Consideration
 Capacity to contract
 Consumers ‘ad idem’ (genuine meeting of minds)
 Legality of object or purpose
 Capability of performance
 Intention to create legal relationship.
2. Insurance is a contract between the insurer and the policy holder. The policy
holder can be different from the person whose life is insured, as will be seen
later. Insurance is a specialized type of contract. Apart from the usual
essentials of a valid contract, insurance contracts are subject to two
additional principles viz ., principle at utmost good faith and the principle
of insurable interest. These apply to all insurance, both life and non life.
3. Commercial contracts are normally subject to the principles of caveat
emptor i.e. let the buyer beware. It is assumed that each party to the
contract can examine the item or service, which is the subject matter of the
contract. Each party can verify the correctness of the statements of the other
party. There is no need to take the statements on trust proof can be asked
for.
4. In the caser of insurance contracts, this principle does not apply. Most of
the facts relating to health, habits, personal history, family history etc.,
Which from the basis of the life insurance contract, are known only to the
proposer. The insurer cannot know them, if the proposer does not disclose
them. The underwriter can ask for a medical report. Yet there may be
examination done.
5. A summary the doctrine of utmost good faith was given in the case of
Rozanes Vs Bowen in 1928 as follows “ As the under writer knows nothing
and the man who comes to him to ask for insurance knows everything, it is
the duty of the assured to make a full disclosure to the underwriter without
being asked, of all material circumstances. This is expressed by saying that
it is a contract of utmost good faith.
6. Every circumstance that would have a bearing on the judgment of a prudent
insurer in fixing the premium or determining the acceptability of the
proposal of insurance is a material fact. Therefore, facts regarded smoking
drinking, medical history, surgeries, earlier insurance, etc., are material
facts and must be disclosed. The proposer can not defend non – disclosure
by contending that he did not think that the fact was material.
7. There are certain facts which, through material, need not be disclosed. They
are
 Facts of common knowledge, which every one is supposed to know.
 Facts of law.
 Facts which a survey would have revealed.
 Facts which could be reasonably discovered by reference to previous
policies and records available with the insurer.
8. The duty of disclosure in life insurance operates till the risk commences,
circumstances, which may have arisen after the risk has commenced do not
affect the validity of the contract, unless the conditions of the contract,
make relevant stipulations to that effect.
9. The breach of the principle of utmost good faith may arise due to
misrepresentation or non- disclosure. Misrepresentation or non- disclosure
should be such that what is stated in the proposal is
 Substantially false and known to the proposer as false.
 Not known to the insurer
 Concerned with facts which are material to the acceptance or assessment of
the risk or material to the benefits south by the proposer.
 Calculated to induce the other party to enter into the contract on its own
terms.
10.In a proposal for life insurance, the proposer makes a declaration to the
effect that all the statements in the proposal form are true in every respect
and, if any untrue statement be contained there in, the insurer would be
entitled to the contracts as null and void and forfeits all the moneys paid as
premium. The effect of this declaration is to turn the representation in the
proposal into warranties, which must be compiled in too.
Insurable Interest
All risks are not insurable otherwise; an insurance contract would be no
different from a wagering contract or betting. It was explained earlier that
speculative risks are not insurable. A wagering contract is speculative in nature
an is illegal in terms of section 30 of the Indian contract Act. A subject matter
of a valid contract has to be legal.
 The insurance Act, 1938 does not define insurable interest, court judgments
have established the circumstances in which insurable interest is deemed to
exist. It has been held that a person has unlimited insurable interest in his
own life. Other classifications relevant for life insurance are.
 A husband has insurable interest in the life of his wife and vise- versa.
 Parents have insurable interests in the lives of their children.
 An employer has insurable interest in his employee to the extent of the
value of his service.
 An employee has insurable interest in his life of his employer to the extent
of his remuneration for the period of his notice.
 A creditor has an insurable interest in the life of the debtor, to the extent of
the debt.
 Partners have insurable interest in the lives of each other.
 A surety has an insurable interest in the life of the principle debtor and also
in the life of his co- surety to the extent of the debt.
 A company has an insurable interest in the life of a key valuable employee.
11. Parents can insure each others lives, because they stand to lose in the event
of death of any of them. A creditor may lose financially if a debtor dies
before repaying a loan his interest would be limited to the outstanding loan
with outstanding interest. If members of families are in business together or
there is some other financial relationship, insurable interest arises as a result
of such financial involvement. The insurable interest arises, not because of
the family ties, but because of the business ties.
12. The legal position about children’s assurance is not quite clear. It is
presumed that parents have insurable interest in the life of a child as a child.
I.e. so long as he is a child. Therefore, most of the children’s policies are
incorporating a vesting clause, whereby the policy vests in the child on
attainment of majority.
In the case of life insurance policies, insurable interest must exist at the
inception of the policy. There is not requirement for insurable interest at the
time of a claim under the life insurance policy. In the case of marine policies
insurable interest must exist at the time of the claim. This implies that there
need not be insurable interest at the inception of the policy. When an importer
asks for insurance cover on goods which he has ordered, he is still not the
owner and therefore, has insurable interest. In other insurances, insurable
interest must exist at the time of inception as well as at the time of claim.
Chapter 3
BRANCH PROFILE
 About Branch
 Historical Back Ground
 Mission
 Vision
 Detail of Branch
 Organization Structure
 Branch Consist Several Officers
Chapter 3
BRANCH PROFILE
ABOUT BRANCH
Branch office was formed on 30-09-1992 with Shikaripura as it head quarters
having its jurisdiction over Shikaripura Taluk.
Since it formation the branch office has been growing steadily in New Business
front from year to year.
Economic back ground

The entire area is predominantly agricultural area. The main crops grown in
this area are paddy, maize, Groundnut, chilies and cotton. The area has normal
rainfall of about 1027mm, Agricultural crops mainly depend on the rainfall and
also business activities are concentrated during the harvest season. The area has
also small water reservoirs which provides water for irrigation. About 10800
hectares of land is cultivated through canal irrigation. Recently the Anjanapura
reservoir and Ambigolla water reservoir have been raised to facilitate canal
irrigation to a larger area and this helps the formers in summer crops also.
Historical Back Ground

Shikaripura town is situated on the right bank of the river Kumadvathi. The
town has famous temple of Lord Hucharaya Swamy. The area has an ancient
temple Lord Kedareswra at Balligavi which was built by Hoysala Dynasty
from here near by 23 kms. Balligavi is the Birth place of Allamaprabu.
Talagunda is the birth place of the great king Mayuravarma. The architecture
of these places can be compared to the art of Belur and Halebeedu. Uduthadi is
the birth place of Akkamahadevi, the contemporary of Bhakthi Bhandari
Basavanna, the 12th century social reformer, Noted Kannada literate and poet
Sri G.S. Shivarudrappa took his birth in this Taluk.
MISSION
The mission of the branch is to explore and enhance the quality of life of
people through financial security by providing products and services of aspired
attributes with competitive returns is by rendering resource for economic
development.
VISION
The LIC vision is to become trans nationally competitive financial
conglomerate of significance of societies and prides of India.
DETAIL OF BRANCH
Branch Name : Jeevan Jyothi Branch, Shikaripura
Date of opening of the Branch : 30 – 09 – 1992
Branch Area : Shikaripura Taluk (Rural and Urban)
Total area of the Branch : 909kms
Number of villages : 178
Number of Hoblis : 2
Number of Blocks : 5
ORGANIZATION STRUCTURE
Senior Branch Manager
Administrative Officer
Asst. Branch Manager
Asst. Administrative Officer
Development Officer
Clerical staff
BRANCH CONSIST SEVERAL OFFICERS

Class I
SBM / BM AO ABM AOA Total
1 1 1 4 7
Class II: Development officers : 7 +2

Class III
High grade Assistant Assistants Clerk Cashier Total
8 4 2 3 20
Class IV
Sepoy Sweeper Total
2 1 3
Branch Agency Organisation 2013-14

1. No. of agents at the beginning :387
2. New Recruitments :77
3. Reinstatements :39
4. Terminations and other Exits :97
5. No of agents In force at the end of the year :408
6.
Sl. No New Business 2011-12 2012-13 2013-14
1 No. of policies 12405 12111 11808
2 Growth rate -17.55 -2.37 -2.50
3 F.P.I 134.28 103.11 83.93
4 Growth Rate -7.20 23.21 -18.58
5 Sum Assured 1073.13 1420.37 1475.48
6 Growth Rate -25.36 32.35 3.87
Target for the year 2014-15

TARGET 2014-15
Number of policies 1,150 Lacks
First premium income
Total premium Income for the Financial Year (2013 -14) in laks
F.P. I 839.36
F.Y.R.P 13.40
R.P 2927.31
Total Premium Income 3780.07
Performance Highlights Of Branch For The Last 3 Final Years

Item 2011-12 2012-13 2013-14
Sum Assured (CR 134.28 142.03 147.50
Total:
% of increase over last year -3.72 32.30 4.00
Number of policies 12,405 12,111 11,808
Total % of increase over last year -17.55 -2.37 -2.50
F.P.I ( incl S.P) 1073.10 1031.11 839.54
% of increase over last year -25.35 -3.91 -18.59
F.Y.R.P 10.97 11.00 13.40
% of increase over last year -3.94 -0.27 21.80
Renewal Premium 2319.82 2746.19 2927.31
% of increase over last year 26.75 15.52 6.58
Total payments
Management expenses 856.40 778.13 717.59
Policy payments 379.48 313.25 315.62
O/S proposal Deposit 1287342.10 853219.77 103897
O/S Policy deposit 85941.80 33300.00 20750
Surplus Transferred
During the year 533.80
(LACS)
CHAPTER 4
POLICIES OF LIFE INSURANCE CORPORATION OF
INDIA
 Basic Life Insurance Plans

 Term Assurance Plans
 Specific Plans for Children :
 Pension Plans
 Child Future Insurance Policy by LIC
Chapter 4
POLICIES OF LIFE INSURANCE CORPORATION OF INDIA
1. BASIC LIFE INSURANCE PLANS

a) WHOLE LIFE ASSURANCE: A low cost with profits insurance plan
where the sum assured is payable on death of the life assured along with
bonuses whenever it occurs. The claim can also be had after the life assured
attains 80 years of age –subject to certain conditions.
b) ENDOWMENT ASSURANCE : Under this plan, the sum assured is

payable along with accrued bonuses on maturity or on earlier death of the
life assured
c) JEEVAN ANAND : A unique with profit whole money- back plan which
provides for annual survival benefit at a rate of 51/2 % of the sum assured
after the chosen accumulation period.
2. TERM ASSURANCE PLANS

a) TEMPORARY ASSURANCE: It is a term assurance plan which provides
risk cover for a short period of two years or loss.
b) MORTGAGE REDEMPTION ASSURANCE : Decreasing term
assurance policy to meet the requirements of borrowers, where the death
benefit is the outstanding loan amount.
c) CONVERTIBLE TERM ASSURANCE (table no 58)
d) It is a term assurance plan with an option to convert the policy to whole life
Limited payment assurance or Endowment assurance at any time during the
specified term, without undergoing fresh medical examination.
e) LIC’s ANMOL JEEVAN -1: A term assurance plant where one can
choose any term from 5 to 25 years. It provides for payment of the sum
assured on death of the life assured during the term of the policy.
f) LIC’s AMULYA JEEVAN -1 A term assurance plan with a minimum
sum assured of Rs. 25 Lakhs.
3. SPECIFIC PLANS FOR CHILDREN :

Various children’s plans are available viz., children’s deferred endowment
assurance (Table No.41 and 50) Komal Jeevan (Table No 159), Jeevan Kishore
(Table No . 102) Jeevan chaya, Jeevan Anurag, Child Future plan, Child career
plan with the option of premium waiver benefit.
4. PENSION PLANS
a) LIC’S JEEVAN AKSHAY : An immediate annuity plan with a number of
options
b) NEW JEEVAN SURAKSHA & NEW JEEVAN DHARA :
c) Deferred annuity plans. The annuitant has five options of annuity payments
to choose from.
d) LIC’s JEEVAN NIDHI: A with profits deferred pension plan which
provides death cover during the deferent peril
5. UNIT LINKED PLANS
a) LIC’s PROFIT PLUS : Unit linked endowment plant with four fund
types, 5 to 20 year policy term, Single premium and 3 to 5 year premium
paying term.
b) LIC’s MARKET PLUS-1 : Unit linked pension plan with option of with or
without risk cover and commutation of 1/3rd pension. Pension can start at
minimum age of 40 years, critical illness as rider is also available.
c) LIC’s CHILD FORTUNE PLUS: unit linked endowment plan with
regular premium paying term which offers investment cum insurance during
the term of the policy.
d) LIC’s CHILD FUR5TUNE PLUS: Unit link plan which offers a solution
to meet the child’s educational and other needs.
e) LIC’s JEEVAN SATHI PLUS: Unit linked joint life plan where in a
couple can take insurance cover on their lives under a single policy
6. MICRO INSURANCE PLAN

LIC’s JEEVAN MADHUR: A with profits micro insurance cum savings plan
where in premiums can be paid in weekly, fortnightly, monthly, quarterly, half-
yearly or yearly intervals over the term of the policy. Sum assured varied from
Rs 5000 ?- to 30,000 /-
7. HEALTH INSURANCEW PLANS

a) LIC’s Health Plus: Unit linked health insurance plan which provides for
insurance cover against health risks
8. LIC’s Health Protection Plus: A whole life unit linked health insurance
plan which provides for insurance cover3 against health risks up to age 75
years and domiciliary treatments benefit / out patient department expenses
reimbursement till the unit fund exhausts. Also premium up to a limit are
eligible for income tax relief v/s 80D
9. JEEVAN ADHAR: A limited payment whole life policy with guaranteed

additions @Rs 100 /- per thousand Sum assured per annum accruing up to
65 year5s of the life assured or on earlier death.
JEEVAN VISHWAS: An endowment type plan with guaranteed additions

@ Rs 60 per thousand sums assured.
10.ORTHER PLANS
a) MONEY BACK PLANS: Besides providing life cover during the term of
the policy survival benefit linked to the sum assured during the term of the
policy will be available.
b) JEEVAN MITRA: An endowment assurance plan providing for twice or
thrice the sum assured payable on death of the life assured during the policy
term
c) JEEVAN SATHI: A with profit joint life endowment assurance plan for
both husband and wife.
d) FIXED TERM ENDOWMENT /EDUCATIONAL ANNUITY: An ideal
plan for making provisions for education marriage of children claim/
annuity is payable after expiry of policy term.
e) NEW JANA RAKSHA: Ideal for all, especially for people with irregular
income.
f) JEEVAN SURABHI: A money back plan where premiums are payable
for a limited period with periodical increase after every five years.
g) LIC’S JEEVAN SHREE: A limited payment endowment assurance plan
with guaranteed additions for the first five years and bonus additions there
after.
h) LIC’S JEEVAN SARAL: A plan the provides the life assured insurance
cover with the flexibility of partial withdrawal.
i) LIC’S JEEVAN PRAMUKH PLAN: A niche market with profits
endowment assurance plan having limited premium paying term with
guaranteed additions for the first five years and bonus additions there after.
j) LIC’s BIMA NIVESH: A single premium plan with compounding
guaranteed additions @ Rs 50 per thousand per annum, payable on death or
maturity.
k) LIC’s BIMA BACHAT: A single premium money –back policy with
policy term of 9,12 and 15 years.
l) LIC’s NEW BIMA GOLD : A regular premium money back plan witch
return of total premiums in installments ate pre specified intervals with
loyalty additions, if any, at maturity and extended free risk cover.
m) LIC’s JEEVAN AMRIT : Plan where premium payment is limited to 5
years and premium payable during first year is higher than the premiums
payable in subsequent years.
n) LIC’s JEEVAN BHARATHI : Money back plan exclusively for ladies
having optional riders such as Accident benefit rider, critical illness benefit
rider and congenital disability benefit rider.
GROUP INSURANCE SCEMES:
LIC offers life insurance protection under group policies to various groups
such as employer employees. Professionals, co- operatives, weaker sections of
society etc. It also provides insurance coverage to people at subsidized rates
under social security group schemes. Besides, providing insurance coverage, to
employees the corporation also offers group schemes. Which provides funding
of gratuity, pension liabilities and leave Encashment liabilities of the
employers.
Employer- employees group is offered group insurance schemes providing

either uniform or graded cover. Group insurance schemes providing uniform
cover will be granted to associations of professionals, members of co-
operative banks, welfare funds, credit societies and weaker sections of society.
GROUP INSURANCE SCHEME IN LIEU OF EDLI

The employee’s deposit linked insurance scheme is applicable to all
establishment and under taking contribution to employees provident Fund
under EPE and MP Act, 1952, with effect from 01-08-1976, unless exempted
under section 17 (2a), of the Act. The scheme provides for an insurance cover
to an employees, which is linked to his balance in the PF Account, subject to a
maximum of Rs 60,000/- under LIC’s scheme, which is granted in lieu of the
EDLI, the insurance cover starts from Rs. 5,000/- ands depends on the service
put in by the employees and the current monthly salary on each Annual
renewal date. The cover provided will be at least Rs 2000 /- more than the
cover given under the EDLI scheme. Few advantages of the LIC’s scheme are
higher cover, lower premium cover not linked to balance in PF account, simple
administrative procedures, easy claims settlement process etc.
GROUP GRATUITY SECEMES
Gratuity is a statutory liability of the employers. This is an incremental liability
which accrues to an employee for every year of service put in by him. In the
group gratuity scheme granted by LIC, in the event of premature death of the
member, the dependent can get an amount which will be equal to the gratuity
payable on the normal retirement of the member, had he survived up to the date
of superannuation. A part from the above the valuation of the liability,
guidance in drafting trust deed and rules of the scheme, security for the fund,
attractive return, lower premium for the insurance optional critical illness rider
benefit against major diseases, periodical information about the status of fund,
simple administrative and claim settlement procedures, tax concessions etc.
GROUP SUPERANNUATION SCHEMES

The group superannuation scheme is designed to provide pension to the
employees / beneficiaries on the exit of the member from the service. A
decreasing group insurance cover in conjunction with the superannuation
benefit can also be provided to supplement the lower accumulation in the event
of premature death of the member. The scheme is of two types
a) Money purchase scheme an
b) Benefit purchase scheme.
Pension which is linked to the dearness Allowance will also be granted. The
LIC’s group superannuation scheme out arte easy to install and provides best
service, free valuation of the liability, attractive returns, Safely of funds, simple
administrative procedures, periodical statement on the fund position, tax,
concession, etc.LIC offers a wide range of benefit options to cater to the needs
of the different beneficiaries.
GROUP SAVINGS LINKED INSURANCE SCHEME (GSLI)

The scheme offers insurance cover with an element of thrift. This scheme is
granted to employer employees groups. Under the scheme out of the
contribution received in respect of each member of scheme, a portion is
utilized towards the insurance cover, the balance is accumulated till one exit.
In the event of premature death of the member, the amount held in his account
together with accumulated interest and insured amount is payable. The scheme
provides an attractive rate of interest on the savings and lower premium for
insurance granted, tax concessions etc.
GROUP ANNUITY SCHEME

Employers who have a privately administer superannuation fund, where
moneys are invested by the trustees as per income Tax r5ules can purchase
pension for employees as and when it is due under group annuity policies from
LIC. LIC offers wide range of benefits options combined with good rate of
return on the investment.
GROUP LEAVE ENCASHMENT SCHEME ( GLES)
According to accounting standard of Jan, 1995 and amended section 209 (3) of
the companies act, 1956, it has become necessary fore employers to provide for
the liability of the leave encashment facility available to employees in the
annual books of accounts. The group leave encashment scheme (GLES) is
designed to fund such liabilities of the employers. The scheme offers free
valuation of the liability attractive returns and best service combined with
insurance cover which may either be uniform or graded.
GROUP CRITICAL ILLNESS RIDER BENEFIT

This is offered to employer- employees groups as an accelerated benefit
granted together with group insurance scheme. This benefit provides coverage
against eight major diseases with maximum of 100% acceleration. The
maximum cover granted is Rs 20 lakhs. The benefit is payable at its first
instance. More diagnosis of the illness is sufficient to get the benefit.
GROUP MORTGAGE REDEMPTION ASSURANCE SCEMES

This scheme covers the borrowers of housing/ vehicle loans from financial
institutions where the loans are recovered with EMI. Insurance cover allowed
to borrower upto the out landing loan excluding the EMI interest, Subject to the
conditions applicable to the scheme. Single premium is payable for the entire
term of loan at one go.
GROUP INSURANCE SCHEME FOR DEPOSIT HOLDERS OF BANKS
This scheme covers account / deposits holders of a bank. The cover allowed is
Rs. 1,00, 000/- per member with / without double accident benefit.
UNIT LINKED GRATUITY PLUS

With effect from June, 2006, LIC has brought out a Unit Linked Group gratuity
plan, called ‘gratuity plus’ for management of gratuity funds. It is a market
linked plan, which offers greater flexibility and transparency.
GROUP SUPERANNUUATION PLUS PLAN

Group superannuation plus plan is introduced by LIC in May, 2009. This is a
unit linked defined contribution plan for management of superannuation funds.
The policy holder has the choice of investing the member vise allocated
contributions in any one of the four types i.e, Bond Fund, Income Fund,
Balanced Fund and Growth Fund. Returns under this plan are marked linked
and flexibility of contribution, Top-up additional contributions, low fund
management charges and expenses are the salient features of this plan.
LIC HOUSING FINACE LTD

Promoted by the life insurance corporation of India, LIC housing finance Ltd
(LIC HFL) was introduced in 1989 and is one of the largest providers of
housing offices. supported by the market intermediaries of approximately
90000 agents. The company also has representative offices in Dubai and
Kuwait. The company went public in 1994 and had its maiden GDR offering in
2004. The company enjoys credits rating of ‘AAA’ from GRISIL on its debt
insurance and a rating of FAAA/ stable on its fixed deposit program. The
company has granted loaned to almost one million customers since inception.
The loan book of the company as on 31- 3-2009 stands at Rs. 27679 cr. and its
network is Rs 2234 cr. It is consistently dividend paying company since 1990,
the as one for 2008- 09 being 130%.
COMPREHENSIVE RANGE OF LOANS

LIC housing finance Ltd. Offers complete range of individual housing loan
schemes such as loans to individuals for new house property, loans for repairs
and renovations, mortgage loan on existing house property, loans for own
office premises to professionals, special schemes for employees of reputed
corporate houses etc. Loans are available with various interest option such as
floating, fix 2 and fixed 5 years. Apart from individuals housing loan schemes,
LICHFL offers loan to reputed builders / developers for residential projects and
loans against securitization of rental receivables.
LICHFL CARE HOMES LTD

LICHFL care homes Ltd. A fully owned subsidiary of LIC housing finance
Ltd. Has pioneered co operatories initiative in the sector of elder care India, by
providing retirement villages with facilities of stay, food, shopping,
communication, ambulance, guest houses etc… its pilot project at Bengaluru,
in an eco friendly campus, a model of its kind, has become fully operational.
Second project is commencing at Bhubaneswar soon, our new projects will
commence shortly in some big cities like Jaipur, Hrishikesh etc.
LIC MUTUAL FUND
LIC Mutual Fund asset management company Ltd. Is the investment manager
to LIC Mutual Fund . LIC Mutual Fund has launched 100 schemes since
inception. Out of 36 ongoing schemes, continuous sale and repurchase is
available under 20 open ended schemes. The AMC was able to mobilize
substantial funds for the financial year and the average assets under
management for March, 2009 was Rs 230932 cr which shows growth of 64%
over the average assets under management for March, 2008.
During the year LICMF opened five Area office at Guwahati, Managalore,
Mumbai-II and Nagpur taking the total number of area offices to 22 besides
increasing the number of business centers to 65 for further penetration in the
untapped semi urban and retail market.
As a 31-3-2009 LICMF stood at no 7 out of 356 mutual funds in the industry
on the basis of average assets under management.
LIC PENSION FUND LTD

The AMC has an excellent tract records in debt and liquid schemes which has
lead to its winning 6 ICRA awards and one Morningstar fund award for the
year ending Dec. 2008.
LIC pension Fund Ltd has been sponsored by LIC of India as a public Limited
company under companies Act 1956 and was incorporated on 27th Nov. 2007.
The company has been formed with specific purpose of managing pension
funds of central / state Government employees and other approved by PFRDA
under New pension system regulated by pension Fund regulatory and
development authority. The company has stared investment management
operation with effect from 2nd April 2008. LIC pension fund is a fully
functional company and transacts its operation independently in its corporate
office, employing with all the regulatory requirements.
During the year 2000-09 LIC pension Fund has shown remarkable overall
performance and was able to earn excellent return on its investment.
Consequently allocation of pension funds of central Government employees
increased from 5% in 2008-09 29% in 2009-10.
SOME POLICES OFFERED BY LIC

JEEVABN ANAND Person who require financial security for the family.
High risk coverage and to meet all long short term financial needs.
Other Features :
a) A blend of both wholes life and endowment plan.
b) Accident benefit is available during premium paying term and there after
upto age 70.
c) Even after the premium paying term is over the risk cover continues till
death of policy holder.
d) Plan is allowed ev
e) en to person engaged in hazardous occupation attracting occupational extra
subject to certain conditions.
Maturity Benefit :
Sum assured (SA) plus bonus is payable with final addition bonus. If any, at
the end of the premium paying term.
Death Benefit
If policy holder dies before completion of premium paying term SA Plus
accumulated bonus will be paid
If policy holder dies after premium paying term an additional amount equal to
sum assured is payable and no bonus will be paid.
ACCIDENT BENEFIT
Maximum accident benefit cover available under the plan is Rs 5 lakh.
However this limit is exclusive of accident benefit available under other plans.
RESTRICTIONS
Minimum age at entry 18 years
Maximum age of entry 65 years
Premium paying term 5-57 years
Minimum sum assured 1.00,000
Mode All
REBATES FOR SUM ASSURED

Sum Assured Rebate Per Rs. 1000 sum assured
Less than Rs 3 lakh Nill
Rs. 3 lakh to 5 lakh Rs. 1
Rs. 5 lakh to 10 lakh Rs 1.50
Rs, 10 lakh and above Rs. 1.75
KOMAL JEEVAN
A definitive provision to realize the dream for your child with guaranteed
returns and installments when required most.
a. General policy condition
Minimum age of entry 0 years

Maximum age of entry 10 years
Maximum age 25 years
Mode allowed Yearly, Half yearly, quarterly, SSS-SP
Mode rebate TYearly-2%, half yearly-1% quarterly/SSS-
nill
Accident benefit N.A
S.A rebate per 1000 Below 2 lakh –nill 2 lakh and above Rs. -1
b. Additional benefit
Paid up value
 Claim concessions
 Surrender value
 Revival
 Nomination / Assignment
 Premium waiver benefit
 ]Term rider benefit.
c. Special Benefit
 Life cover for both child and father (if adopted)
 Guaranteed additions @ 75/- per thousand S.A
 PWB optional
 Term rider optional
 Loyalty additions
ANMOL JEEVAN
A pure term assurance that covers mo0re risk and less premium. All males and
females with earned income and females with unearned income and paying tax
are eligible for this plan.
 Policy also available as gift
 Plan is allowed to physical handicapped person as per the existing rules
 This plan is allowed to persons engaged in hazardous occupation by
charging appropriate occupational extra or with clause 86.
 Grace period of 15 days will be allowed for payment of yearly or half
yearly premiums.
NEW BIMA GOLD

Minimum age at entry 14 years
Maximum age entry 57 years
Term 12-16-20 years
Minimum Sum Assured 50,000
Maximum Sum Assured Aug amount
S.A in multiple Rs 5000
Accident benefit per 1000S.A Rs 1 extra
Mode Yearly, half yearly, quarterly, SSS and
monthly
It is nothing but four in one policy they are
 Auto cover facility available
 Money back every 4 years
 Low premium high extended insurance cover after maturity.
JEEVAN CHAYA LIFE INSURANCE

Features of Plan: This policy is beneficial for partner having less then a year
old child (not an adopted child). It makes provision for higher education/
marriage of the child. In case of death of the policy holder at any time during
the term of the policy one additional S.A will be payable in addition to the
above fixed benefits.
This plan is not allowed when occupational extra is chargeable and to pregnant
ladies. Joint declaration by the husband and wife is must, if child is less then
one year old.
One fourth of the S.A is given every year during the last 4 years of maturity to
the policy holder. Bonus for the full term on the full S.A is given on maturity
Plan Parameter
Age at entry : Min 18 yrs, Max 45 years
Maturity Age : 65years
Sum assured : Min 50,000 , Max No limit
S.A in multiples : 5000
Term : Min 18 yrs, Max 25 yrs
Mode of payment : YLY/ HLY/ QLY/SSS/MLY
Accident benefit : Rs 1 extra per
(Max -50 lakh inclusive 1000 S.A All plan)
Policy Loan : Yes
Housing Loan :Yes
Revival : Yes
Surrender of policy :Yes
Term Rider : N.A
CIR : N.A
Benefit
Survival benefit : 25% S.A during last 3 years . Before maturity. Maturity
benefit : on Maturity balance 25% of S.A + Bonus on full S.A + FAB, if any.
Death benefit: S.A is immediately paid to the nominee future premium are
rwaived. Moreover, during last 4 years of term 25% of S.A is payable. In
addition bonus for full term + FAB , if any will be paid.
CHILD FUTURE INSURANCE POLICY BY LIC

Features of Plan
Life insurance corporation has introduced a new with profit child future plan (
Table No 185) w. e. f 8th February 2007. This plan meets the increasing g
educational and other need of growing children providing the risk cover on the
child’s life during the policy term as will as extended term (i.e. 7 years after the
expiry of policy term). Child’s father or mother of female category I and II
having his / her own income can be the proposer, of the consent of parent is
obtained, the grand parents can propose even if the parents are alive. Premium
are payable regularly during the policy term with yearly, half yearly or
quarterly. Premium may be paid either for 6 years or up to 5 years before the
policy term. No premium are payable during the extended term (i.e. 7 years
after the expiry date)
Risk commencement: Risk under this plan will commencement either after 2
years from the date of commencement of the policy or from the policy
anniversary coinciding with or immediately following the completion of 5
years of age life assured, which ever is later, (if the life assured age at entry is
less then or equal to 10 years) . Incase the age at entry is more than 10 years
but less then 12 years, the risk shall commence from the policy anniversary
coinciding with or next following 12th birthday of the life assured, in the life
assured age 12 years a more, the risk will commence immediately.
PLAN PARAMETERS
Age at entry : Min 0 yrs,(LBD) Max 12 years (LBD)
Maturity Age : Min 23 years (LBD) Max 27 years (LBD)
Sum assured : Min 1 lack , Max 1 crore
S.A in multiples : 5000
PPT : 6 yrs, and policy term - 5 years
Mode of payment : YLY/ HLY/ QLY
Policy Loan : No
Housing Loan :No
Assignment : No by the proposer, but assignable after the policy
has vested in the life assured.
Revival : Yes
AGE PROOF
Aged 5 years and above- School certificate
Aged less than 5 years _ certificate from Municipal / Local village panchayat
records
Auto cover: After payment of the full years premium if any subsequent
premium be not duly paid, full death cover shall continue for a two years from
the due date of the first unpaid premium (FUP) PWB, if any shall remain in
force during the auto cover period.
BENEFIT
Death benefit: On death after the date of risk commencement.
1. If death occurs within the period from the date of risk commencement to 5
years before expiry date of policy term : Sum assured + vested simple
reversionary bonus and F.A .B if any if payable I
2. If death occurs with in 5 years before the expiry the date of policy term:
Sum assured + F.A.B if any is payable.
3. On death during the extended term: Sum assured is payable
4. If death occurs before the date of risk commencement: all the premium paid
(excluding premium for extra and PWB if any ) + interest @ 3% P.a
compounding year shall be payable.
5. If death occurs during the auto cover period: death benefits after deducting
unpaid premium with interest as also the premium falling due before the
next bonus if any.
Survival Benefit: On life survival till the end of the specified
Durations an amount is payable as survival benefit as under:
 5 years before the expiry date of policy term : 25% of the SA
 2years before the expiry date of policy term : 10% of the SA
On the expiry date of policy term: 50% of the S.A + vested simple
reversionary bonus + final additional bonus (FAB, if any)
Chapter 5
Chapter 5
1. The following table shows the distribution of respondents acquired the

awareness about the policy,
Particulars No. of respondents Percentage (%)

Agent 20 40
Friends 12 24
Advertisements 8 16
Others 10 20
Total 50 100
160
140
120
100
80
60 Percentage (%)
40 No. of respondents
20
0
Interpretation
The above diagram shows the distribution of 50 respondents acquired the
awareness about the policy in that 20 respondn3ets, 8 respondents through
advertisement and remaining 10 respondents from other sources
2. The following Table shows the respondents policy they have
Name of policies No. of respondents Percentage (%)

Endowment plan 17 34
Tern insurance plan 9 18
3Children plan 17 34
Pension plan 7 14
Total 50 100
160
140
120
100
80
60 Percentage (%)
40
No. of respondents
20
0
Interpretation
The above chart shows choice to policies 17 respondents have endowment
plan, 9 respondents have term insurance plan. 17 respondents have children
plan & remaining 7 are have pension plan.
3. Table showing the premium payment through different made
Particulars No. of Respondents Percentage (%)

Agents 30 60
Online 8 16
ECS 0 0
Others 12 24
Total 50 100
160
140
120
100
80 Percentage (%)
No. of Respondents
60
40
20
0
Agents Online ECS Others Total
Interpretation
The above chart shows that mode of premium payment in that 30 respondents
are select through agents, 8 respondents are select online payment, &
remaining 12 respondents select other sources as their convenient.
4. Table showing made of premium preferred by respondents
Mode of premium payment No. of respondents Percentage (%)

Monthly 20 40
Half yearly 15 30
Quarterly 5 10
Yearly 10 20
Total 50 100
No. of respondents
Monthly
Half yearly
Quarterly
Yearly
Total
Interpretation
The above diagram represents 20 respondents preferred monthly payment. 15
respondents prefer half yearly payment,10 respondents prefers yearly payment
and remaining 5 respondents prefer quarterly payment.
5. Table Showing the respondents motive of taking LIC policy
Particular No. of Respondents Percentage (%)

For savings 21 42
For tax benefit 5 10
Risk coverage 24 48
Others 0 0
Total 50 100
120
100
80
60 No. of Respondents
Percentage (%)
40
20
0
0 2 4 6
Interpretation
The above diagram shows 24 respondents taking LIC policy for risk coverage,
21 respondents for savings and remaining 5 respondents for tax benefit
6. Table shows the service provide by LIC
Response No. of .Respondents Percentage (%)

Yes 48 96
No 2 4
Total 50 100
100
80
60
No. of .Respondents
40
Percentage (%)
20
0 Percentage (%)
No. of .Respondents
Yes No Total
Interpretation
Above diagram represents service provided by LIC agents in that 96% positive
and 4% negative response from the respondents.
7. Table shows the guidance provides by the LIC agents
Response No. of Respondent Percentage (%)

Yes 46 92
No 4 8
Total 50 100
No. of Respondent
Yes
No
Total
Interpretation
The above diagram shows the guidance provided by LIC agents in that 9%
positive and 8% negative response from the respondents.
8. Table shows the premium charged by LIC
Premium charge No. of respondents Percentage (%)

High 4 8
Very high 14 28
Normal 32 64
Low 0 0
Total 50 100
100
90
80
70
60
50 No. of respondents
40 Percentage (%)
30
20
10
0
High Very Normal Low Total
high
Interpretation
The above table shows that 32 respondents response that LIC premium charges
at normal rate, 14 respondents response that LIC premium charges at very high
price, remaining 4 respondents response that LIC charged at high rate of
premium
9. Table shows the LIC policies provide safety and Security of life
Particular No. of respondents Percentage (%)

Yes 48 96
No 2 4
Total 50 100
No. of respondents
Yes
No
Total
Interpretation
Above diagram represents LIC policy provide safety and security of life in that
96% positive and 4% negative response from the respondents.
10.The following table shows the respondents opinion regarding to purchase
a policy
Particulars No. of Respondents Percentage (%)

Yes 48 96
No 2 4
Total 50 100
160
140
120
100
80 Percentage (%)
No. of Respondents
60
40
20
0
Yes No Total
Interpretation
Above diagram represents LIC policy purchasing about 96% and 4%
respondents are not purchased.
Chapter 6
MAJOR FINDINGS, SUGGESTIONS AND
CONCLUSIONS
Chapter 6
MAJOR FINDINGS, SUGGESTIONS and CONCLUSIONS
From the survey we can observe the following points

 LIC is providing excellent customer service
 Acquired the awareness of LIC schemes by agents. Friends and
advertisements
 Most of the policy holders prefer monthly premium payment.
 Most of the people who have hold LIC policy their motive is risk coverage.
 Some of the respondents wants new type of policy schemes.
FINDINGS
Even though there is good services, some people says that there is some
problems relating to service. They are not too satisfied. They are as follows
 The service of LIC agents after selling the policies shown their face again.
 Bonus provided by LIC is very less. There is delay in transfer of policies
 Settlement of claims is not quick.
 Loans given by LIC at high rate of interest.
 Some respondents stated that advertisement is less to the public who have
the LIC.
 The rules regulations and procedures of insurance company are not reaching
the common people. There is lot of formalities involved in purchasing
policy
SUGGESTIONS
 The branch should make further efforts to increase or popularities all its
policies. Besides it needs to check and reserve the declaiming the end in
case of all their policies.
 There should be quick settlement.
 The branch should popularize its loan schemes among the policy holders.
 Loans given by LIC at high rate there should be decrease in interest on loan
provided by LIC
 Rules, regulations, policies and procedures of the corporation should be
made known to the common people.
 Death claims should be settled still more expeditiously and number of
outstanding death claims at year ends should be reduced of possible nil.
 Bonus should be increasing some extent.
 There will be cordial or good relationship b/n providing better services to
customers.
 They should avoid delay in transfer of policies from one branch to another.
 They should be improving service of ILC.
CONCLUSIONS
After findings we can see about LIC features and the tendency to take the
expedient approach and focus on the far right of the LIC spectrum. Peace time
contingency operations and conduct training as usual, while briefing that the
LIC block has been checked, will lead us to a possible fatal false sense of
security.
Instinctive behavior and ingrained training must be adjusted to fil 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.
ANNEXURE
 QUESTIONNAIRE
 BIBLIOGRAPHY
Questionnaire
Sir/ Madam
I am Ranjitha A.R student of ATNCC Studying in Final year BBM of
academic year 2014-15 for the partial fulfillment of my course. I am
conducting the survey for project report on policy schemes of LIC of India”,
A case study on LIC Branch Shikaripura.
There fore please spare your valuable time to fulfill the questionnaire.
This survey surely academic and data thus gathered would be kept condentially
Your faithfully
Ranjitha A.R
1. Name :
2. Address :
3. Age :
a) 18- 25 b) 25- 35
b) c) 35-45 d) 45 and above
4. Martial status :
a) Married b) Unmarried
5. Gender:
a) Male b) Female
6. Occupation :
a) Agriculture b) Business
c) Employed d) Professionals
e) Others
7. Education:
a) SSLC b) PUC c) Graduate
d) Post Graduate e) Others
8. Monthly Income:
a) Below Rs. 5000 b) Rs. 5000-10000
c) Rs. 10,000-20,000 d) Rs. 20,000,00 and above
9. From whom you acquired the awareness about the policy?

a) Agent b) friends
c) Advertisements d) others
10.What type of policy you have hold?

a) Endowment plan b) Term Insurance plan
c) Children Plan d) Pension Plan
11.Which type of premium payment is preferred by you?

a) Monthly b) Half yearly
c) Quarterly d) yearly
12.What is your motive of taking the LIC Policy?

a) For savings b) for Tax benefit
c) Risk coverage d) others
13.Through which mode of premium payment is convenient for you?
a) Agents b) Online Method
c) ECS d) Others
14.Are you satisfied with service provided by LIC?

a) Yes b) No
b)
15.Did the LIC agents Provide proper guidance about Insurance policy?
a) Yes b) No
b)
16.Do you find difficulty to purchase a policy?
a) Yes b) No
17.What is your opinion regarding the premium charged by LIC compared

to benefit?
a) High b) Very high
c) Normal d) Low
18.According to you, LIC Policies provide safety and security of the life
a) Yes b) No
19.Any Suggestions_____________________________________
___________________________________________________
Date :
Place :
Signature.
BIBLIOGRAPHY
 Text books
Insurances in India
 Internet Sources
 Agents Manual
 Annual Report of the Company from shikaripura Branch

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LIC OF INDIA

A CASE STUDY ON LIC BRANCH SHIKARIPURA.

Indian marketing and largely described as seller market. Demand is invariably

Need and Importance of the Study

Brief History of Insurance

History of LIC Insurance corporation of INDIA

LIFE INSURANCE CORPORATION OF INDIA

Life insurance corporation of India encourages savings

Life insurance corporation of India fulfills the need of a person

2. Old age needs:

LIC helps to reduce inflation

Principles of Life Insurance

Economic back ground

Historical Back Ground

Senior Branch Manager

Asst. Branch Manager

Asst. Administrative Officer

BRANCH CONSIST SEVERAL OFFICERS

Class II: Development officers : 7 +2

Branch Agency Organisation 2013-14

Target for the year 2014-15

Performance Highlights Of Branch For The Last 3 Final Years

O/S proposal Deposit 1287342.10 853219.77 103897

 Basic Life Insurance Plans

1. BASIC LIFE INSURANCE PLANS

b) ENDOWMENT ASSURANCE : Under this plan, the sum assured is

2. TERM ASSURANCE PLANS

3. SPECIFIC PLANS FOR CHILDREN :

6. MICRO INSURANCE PLAN

7. HEALTH INSURANCEW PLANS

9. JEEVAN ADHAR: A limited payment whole life policy with guaranteed

JEEVAN VISHWAS: An endowment type plan with guaranteed additions

GROUP INSURANCE SCEMES:

Employer- employees group is offered group insurance schemes providing

GROUP INSURANCE SCHEME IN LIEU OF EDLI

GROUP SUPERANNUATION SCHEMES

GROUP SAVINGS LINKED INSURANCE SCHEME (GSLI)

GROUP ANNUITY SCHEME

GROUP CRITICAL ILLNESS RIDER BENEFIT

GROUP MORTGAGE REDEMPTION ASSURANCE SCEMES

UNIT LINKED GRATUITY PLUS

GROUP SUPERANNUUATION PLUS PLAN

LIC HOUSING FINACE LTD

COMPREHENSIVE RANGE OF LOANS

LICHFL CARE HOMES LTD

LIC PENSION FUND LTD

SOME POLICES OFFERED BY LIC

REBATES FOR SUM ASSURED

Minimum age of entry 0 years

NEW BIMA GOLD

JEEVAN CHAYA LIFE INSURANCE

CHILD FUTURE INSURANCE POLICY BY LIC

1. The following table shows the distribution of respondents acquired the

Particulars No. of respondents Percentage (%)

Name of policies No. of respondents Percentage (%)

Particulars No. of Respondents Percentage (%)

Mode of premium payment No. of respondents Percentage (%)

Particular No. of Respondents Percentage (%)

Response No. of .Respondents Percentage (%)

Response No. of Respondent Percentage (%)

Premium charge No. of respondents Percentage (%)

Particular No. of respondents Percentage (%)

Particulars No. of Respondents Percentage (%)