CONTENTS

And of course nothing could have come true without the support of my family, friends and all the classmates for their constant encouragement and useful tips through out my project. I will always grateful to them. Gaurav Kumar Gupta

Introduction

Preface
Acknowledgement Objective of the project Methodology Finding Project Analysis Conclusion Li
Gaurav Kumar Gupta BML/01/14

INTRODUCTION
mitation Bibliography
LIC of India is the one and only public sector life insurance Company in India. Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India.
Gaurav Kumar Gupta BML/01/14

the Parliament of India passed the Life Insurance of India Act on1956-06-19. parliamentarian Feroze Gandhi raised the matter of insurance fraud by owner's of private insurance companies. one of India's wealthiest businessmen. Eventually.. In the ensuing investigations. Nationalization of . Ram Kishan Dalmia. can trace its roots to the Triton Insurance Company Ltd. and the Life Insurance Corporation of India was created on1956-09-01. was sent to prison for two months. Nationalization In 1955. owner of the Times of India newspaper.The General insurance business in India. the first general insurance company established in the year 1850 in Calcutta by the British. by consolidating the life insurance business of 245 private life insurers and other entities offering life insurance services. on the other hand.

5. 33 divisional offices and 212 branch offices. and employs over 1 million agents. which had created a policy framework for extending state control over at least seventeen sectors of the economy. which commanded amonopol y of soliciting and selling life insurance in India.4 trillion.048 offices servicing around 180 million policies and a corpus of over INR 3. Current status Over its existence of around 50 years. The company began operations with 5 zonal offices. which started its business with around 300 offices. and contributed around 7 % of India'sGDP in 2006. The organization now comprises 2048 branches. created huge surpluses. has grown to 2.the life insurance business in India was a result of theIndustrial Policy Resolution of 1956. 100 divisional offices and 8 zonal offices. The Corporation.6 million policies and a corpus of INR 459 million. Life Insurance Corporation of India. including the life insurance. It Gaurav Kumar Gupta BML/01/14 .

the monopolistic position of the Life Insurance Corporation of India was diluted. and it has had to compete with a number of other corporate entities. and the subsequent relaxation of state control over several sectors of the economy. primarily to cater to the needs of Non Resident Indians.also operates in 12 other countries. With the change in the India's economic philosophy from the early 1990s. Indian as well as transnational Life Insurance brands. In the financial year 2006-07 Life Insurance Corporation of India's number of policy holders are said to have crossed a whopping 200 million (fourth in terms of population of the countries of the world) Subsidiaries LIC owns the following subsidiaries: ‡ Life Insurance Corporation Subsidiaries LIC owns the following subsidiaries: ‡ .

Life Insurance Corporation of India International: This is a joint venture offshore company promoted by LIC which commenced operations in July. 1989 with the objectives of offering US$ denomimated policies to cater to the insurance needs ofNRIs and providing insurance services to holders of LIC policies currently residing in the Gulf. Sri Lanka. Gaurav Kumar Gupta BML/01/14 School Of Management .Nepal. LIC International operates in allGCC countries. ‡ LIC Lanka: A joint venture company formed in 2003 with the Bartleet Group of Companies. ‡ LIC Nepal: A joint venture company formed in 2001 with the Vishal Group of Industries.

Science Lucknow Certificate It is to certify that the project work entitled ³Life Insurance Corporation of India´ which is being submitted by me in partial fulfillment of the requirement for award of the diploma of PGDM (IST SEM). The main objective is to spread life insurance to every nook . is an authentic work carried out by me at School of Management Science under the supervision and Gaurav Kumar Gupta BML/01/14 When LIC was formed in 1956 through the amalgamation of 225 private companies. its business objectives complemented its social objectives.

to socially and economically backward classes and provide them reasonably-priced financial cover against death. What have changed in recent times are customers· expectations and the environment in which the life Gaurav Kumar Gupta . The funds created are then utilized and invested for nation building.and corner of the country especially rural areas. the core value of social commitment has not changed. Other objectives include encouraging people to save for the future by making insurance-linked savings more attractive and secure. Even today after 50 years. The insurance business is conducted with the full realizations that LIC is only a trustee of the insured public and priority is given to meet the needs that arise due to change in the social and economic environments.

its business objectives complemented its social objectives. The main objective is to spread life insurance to every nook and corner of the country especially rural areas. to socially and economically backward classes and provide them reasonably-priced financial cover against death. The insurance business is conducted with the full realizations that LIC is only a trustee of the insured public and priority is given to meet the needs that arise due to change in the social and economic environments.When LIC was formed in 1956 through the amalgamation of 225 private companies. Even today after 50 years. What have changed in recent times are customers· expectations and the environment in which the life Gaurav Kumar Gupta BML/01/14 . the core value of social commitment has not changed. The funds created are then utilized and invested for nation building. Other objectives include encouraging people to save for the future by making insurance-linked savings more attractive and secure.

The main objective is to spread life insurance to every nook and corner of the country especially rural areas.Objective of the Project When LIC was formed in 1956 through the amalgamation of 225 private companies. Other objectives include encouraging people to save for the future by making insurance-linked savings more attractive and secure. The funds created are then utilized and invested for nation building. . its business objectives complemented its social objectives. The insurance business is conducted with the full realizations that LIC is only a trustee of the insured public and priority is given to meet the needs that arise due to change in the social and economic environments. to socially and economically backward classes and provide them reasonably-priced financial cover against death.

customer relationship management. IT usage covers all business activities of the organization. underwriting. product development. human resource development.Even today after 50 years. marketing. This includes finance. actuarial. What have changed in recent times are customers· expectations and the environment in which the life Gaurav Kumar Gupta BML/01/14 IT for Insurance IT policy flows from the business and social objectives. investment. the core value of social commitment has not changed. . policy servicing.

it is a strategic tool to simplify procedures and revamp processes. . IT is a must for any industry to keep pace with the customer·s changing expectations. Rather. it also provides greater accountability. any time service. In today·s world. Its role is not to automate processes. and estate management.office servicing. It not only provides anywhere. transparency and responsiveness in all business processes. This helps create a very efficient customer service management system.

So it has to induct the best IT products available and use them to cater to the needs of the customers and deliver anywhere any time service on demand and to add value to its new products. The trust and the goodwill of the customer gained in the last 50 years have to be . The insurance sector has to ensure that the technology it chooses does not lag behind where customer expectations are concerned. LIC has more than 16 crore policy holders. In our case.This is especially relevant in the service industry.

policy status. services. Info centers are set up at major cities to provide call centre type services. grievances and premium calculator. Other facilities include touch-screen information kiosks at central locations to provide 24 x 7 inquiry services to customers.consolidated by making all activities more customer-focused. Internet payment gateways as well as ATMs of Bank·s ‡ . LIC has a corporate Web site to provide information on products. For instance. Alternate premium payment channels like ECS.

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 Gaurav Kumar Gupta BML/01/14 and providing them adequate financial cover against death at .

a reasonable cost. the primary obligation to its policyholders. ‡ Maximize mobilization of people's savings by making insurance-linked savings adequately attractive. in the investment of funds. . without losing sight of the interest of the community as a whole. ‡ Bear in mind. 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. whose money it holds in trust.

‡ Involve all people working in the Corporation to the best of their capability in furthering the interests . ‡ Meet the various life insurance needs of the community that would arise in the changing social and economic environment.‡ 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.

of the insured public by providing efficient service with courtesy. Promote amongst all agents and employees of the Corporation a sense of participation. One True Objective R m+ A4 O/ I( E This attitude-and the resulting vagueness-seems to come from the fact that most of us don't really know what we mean by career objective. pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective. Reading between the .

. we begin to see that they may really be talking about two different kinds of objectives: 1. A career objective for your resume Come again? Focus those glazing eyes. A career objective for your life. and Gaurav Kumar Gupta BML/01/14 2. and let's take a closer look.lines of expert opinions.

which has been providing consistent.The entry of private players in life insurance- The entry of private players in life insurance has resulted in a drop in the market share for Life Insurance Corporation. Life Insurance Corporation . But what has perhaps been lost in all the heat and dust of market share and topline growth is that the Life Insurance Corporation has emerged as a regional giant with assets of over Rs 8-lakh crore. returns to the government and policyholders for 52 years.

the volatility in Indian financial market due to the uncertainty in global markets may affect returns we get on our investments. Impact of the financial crisis on Life Insurance Corporation LIC is a public sector insurer and a domestic investor. As such. we are not directly affected by the global financial crisis. But LIC has an indisputable record of prudently planning its investments and getting the maximum returns on the . However.chairman TS Vijay an speaks of how LIC is a growing organization and the corporation·s plans of regaining its lost market share.

even when there are periodical ups and downs in new premium income. We will continue to do that in any type of scenario.policyholders· money. the growth in total premium income was quite . Why has the new business growth slowed? What will be the impact of the lower growth on LIC·s performance? Will it affect ratios? Total premium growth of LIC has always been quite stable. Last year. However. we ended the year with around 10% growth in First Premium income despite several odds.

598. I Gaurav Kumar Gupta BML/01/14 was only 11. which enabled us to give higher terminal bonus to our ´with profitµ policyholders and to increase dividend to the government.healthy. excluding the commission. I agree that there has been a decline in the new .65 crore. Having said that. indicating better conservation ratio.94%. Our overall expense ratio is the least in the industry. The surplus generated was a record high of Rs 16. Last year.56%. and it was just 5.

In September. One of the reasons was that after withdrawal of our successful old plans. and I am sure. the figures have started picking up. . Also. we have launched new products and the response has been very positive and encouraging. Since then. we did not immediately introduce any new ULIP.premium in the current financial year. we had some issues with the union of development officers. which have been more or less sorted out through series of consultations and discussions.

LIC is close to saturation level in terms of distribution. How will you retain the market share? It is not accurate to say that LIC has reached its saturation point in terms of distribution.we will recapture the lost ground very soon. We do have constraints of capital and any . Private insurers are growing their market share by growing distribution. as we are expanding our reach and network. Other insurers are perhaps expanding very fast and the effect is reflected in their balance sheets.

growth has to be supported by internal accruals only. Hence. And I am sure. determine who becomes winner in the life insurance market in India. in the long run. Such a practice makes our products better. How do you propose to comply with IRDA¶s decision to cap single company exposure at 10% of a company¶s capital? First of all. this will. let me say that new regulations are not only about . we follow the policy of steady and profitable growth and distribute 95% of surplus to our ´with profitµ policyholders.

Our total assets of more than Rs 8-lakh crore are our legacy built on the basis of earlier regulations and norms under Gaurav Kumar Gupta BML/01/14 TYPE OF RESEARCH- . Second. but applicable to the whole industry. these norms are not just LIC-centric.equity exposure. but encompass several other aspects too.

. websites and collected information and data. This study is exploratory in nature because I am not going to give any suggestion or recommendation. I have gone through various news papers. magazines. We have always followed applicable norms in our operations and we have an impeccable track record of being a prudent investor. Gaurav Kumar Gupta BML/01/14 Methodology the Insurance Act.To study the Insurance company in India.

New investment norms have several changes from the earlier one and we are working on them and are in touch with IRDA where we have problems. ‡ ‡ ‡ ‡ News paper Magazine Internet Visual vmpro software(Lic) .(Secondary data) In data collection method we shall collect the secondary data from the following sources.keeping in view the best interests of our policyholders. Will the exposure limit force LIC to divest in blue chips and invest in companies that have a lower credit rating? Data collection:.

MS Power point Product range offered.‡ Other sources for information. Parameters of Research ‡ ‡ ‡ ‡ Network ‡ Benefit offered to customer¶ . Service quality. Claim¶s settlement¶s history.0 MS EXCEL MS Word. STATICAL TOOL¶S ‡ ‡ ‡ ‡ SPSS 16.

Gaurav Kumar Gupta BML/01/14 Products offerd Service Quality Your Policy Bond And Its Safety Your Policy Number Policy Conditions Alterations In Policy If Your Policy Is Lost Gaurav Kumar Gupta .

This is an important document which would be referred to for various servicing interactions with you ² Keep the policy bond safe. The risk coverage commences after acceptance of your proposal and the conditions and privileges of your policy are mentioned in the policy bond. .BML/01/14 Your Contact Address ² Keep Us Posted Without Fail Admission Of Age Nomination Assignment When To Pay The Premiums Grace Period For Premium Payment How And Where To Pay The Premiums Policy Status ² Where Available Revival Of Lapsed Policies Availing Loans On Policies Surrender Value Maturity. Survival Benefits. Disability And Death Claims Policies Under Salary Savings Scheme Helpline Your Policy Bond and Its Safety The policy bond is the document that is given to you after we accept your proposal for insurance. It will be required at the time of settlement of claims on the policy.

You will also require it if you are availing a loan or want to assign the policy. Inform your spouse/Parents/Children as to where the policy is kept. In case you are handing over the policy bond to any person or office, please take a written acknowledgement. Keep a Photostat copy of the policy for your reference.

Your Policy Number
Gaurav Kumar Gupta BML/01/14

The policy number is consisting of nine digits and can be found at the top left hand corner of the schedule of your policy bond. This is a unique identification number that distinguishes your policies from other policies and will remain unchanged throughout the lifetime of the policy. Remember to quote the policy number every time in your correspondence, as it helps us to locate your records for reference.

Policy Conditions
Every policy is taken for different types of needs; therefore the conditions for your policy will vary according to the Plan and Term of the policy. The policy schedule contains on the first page of your policy, like the ones mentioned above as well as other information like nominee, your address etc. It also shows the date of commencement of your policy, date of birth, date of maturity, due dates and months in which the renewal premiums are to be paid etc. The second page onwards carries the various policy conditions like risk coverage, additional risks coverage if opted for, standard benefits that are available for all policies, accident benefit if opted for, exclusion of risks if any and other conditions that govern the contract of insurance. Apart from death benefits there are other standard benefits and benefits opted by the policyholder

Alterations In Policy
There may be instances when you would like to make alterations in your policy like change of premium payment mode, reduction in premium paying term etc. your applications may be given in writing to the branch that services your policy for our further action.

If Your Policy Is Lost
Kindly make a thorough search before concluding that you have lost the policy bond. Look for the same within your residence, among
Gaurav Kumar Gupta BML/01/14

your investment papers, at your office and even with your agent to whom you might have entrusted the document for some reason. It could have been It could have been even pledged with LIC/any other financial institution for availing a loan by you. LIC retains the policy bond when you go in for a loan against the policy. Make sure that the document you are searching is not one that has already been assigned to LIC, or to another financial institution. If the policy bond is partially destroyed due to natural causes like, fire, flood, etc, the remaining portion may be returned as evidence of loss of policy to LIC, while applying for a duplicate policy. In case you are sure that the policy bond is untraceable due to unknown causes, there is a simple procedure to comply with while applying for the duplicate policy at the branch that services your policy

Your Contact Address ± Keep Us Posted without Fail

Your address is very important for us. Without your latest address we would not be in a position to contact you for any service offering. We would not like to keep any benefit that is due to you pending for want of this very important information. Whenever you shift residences, please inform the new address to us. Otherwise any communication we send to you, like premium notices, discharge vouchers for maturity and survival benefits etc., will get delayed in reaching you. LIC provides for change of addresses, inclusion of telephone numbers, mobile numbers and email addresses in your contact addresses information. Kindly inform your servicing branch to incorporate the same in your policy records.

Admission of Age
Check your policy bond and see if your date of birth is correctly given therein. This is one of the factors on which the premiums you pay for your policy is arrived at. This would also form the basis of all future policies you might avail from us. In case your earlier policies do not have your date of birth incorporated and you do have a date of birth certificate issued by
Gaurav Kumar Gupta BML/01/14

the competent authority, you may send an attested copy of the same to us, with a request to admit your age (Click here to find out the certificates of age that LIC accepts.)

Nomination
Ensure that the nominees name is correctly incorporated in the policy bond. You may change the nomination in your policy any time during the lifetime of the policy

the usual preferences being spouse and children. even if our notices do not Gaurav Kumar Gupta BML/01/14 reach you. LIC usually sends premium notices one month in advance to the due month of the premium. The nominee is the person to whom the insurance claim amounts would be payable. your policy would have to be assigned to LIC or the financial institution.In case you have not included the name of the nominee till now. You may nominate even minors like your children. please do not delay. in case anything unfortunate within the purview of the policy conditions happens to you. . There may be a postal delay. A fresh nomination should be done after reassignment of the policy. Assignment of policies can be done even when a loan is not required or for some special purposes When to Pay the Premiums Remember to pay your premium in time. The policy is usually taken by you to benefit your family ² nominate the persons who·ll have the welfare of your family in your absence. The policy would be reassigned to you on the repayment of the loan. as an appointee Assignment In case you are raising a loan against your policy from LIC or any other financial institution. in which case you have to name another person who·ll have the welfare of the minor children. Kindly note that the change of nomination has to be done in the branch that services your policy. inform us your nomination immediately. When you assign the policy the title of the policy is shifted from your name to that of the institution.

Citibank. Corporation Bank. local cheque (subject to realization of cheque).HDFC Bank. Grace Period For Premium Payment In case you have not paid the premium within the due date there is still time for you to make the payments without payment of interest on the premium. half-yearly or yearly is one month but not less than30 days. Times of Money. Gaurav Kumar Gupta BML/01/14 Premium payment can also be made through ATMs of .The months in which premiums are due are given on the first page of the Policy bond. Demand Draft at Branch Office. The grace period for policies where the premium payment mode is quarterly. The DD and cheques or Money Order may be sent by post. on the due dates and months mentioned on your policy bond. So by providing a standing instruction to your Bank to debit your account for the premium amount and send it vide a banker·s cheque to LIC. (With the exception of some plans) The grace period for policies where the premium payment mode is monthly is 15 days from the due date. UTI Bank. This period is called the grace period. How and Where To Pay the Premiums By cash. Through Internet : Payment of premiums can be made through Internet through Service Providers viz. Federal Bank and BillDesk. ICICI Bank. Bank of Punjab. Bill Junction. You can pay your premiums at any of our Branches as 99% of our Branches are networked. Many Banks do accept standing instructions to remit the premiums.

Now the policy status of policies being serviced in the cities connected by network are also available through Internet In select Gaurav Kumar Gupta BML/01/14 . Premium payment can also be made through Electronic Clearing Service (ECS) which has been launched at Mumbai. Trivandrum. Chennai. Borivili are dedicated for collection of premiums through cheques. Jeevan Shikha Building. for your reference. The policyholders wishing to use this system would have to fill up a Mandate Form available at our Branches/DO and get it certified by the Bank. Chandigarh. Kolkata. New Delhi.Corporation Bank and UTI Bank. Jaipur. New India Building. Policy Status ± Where Available Status of your policy indicates if your policy is in force or has lapsed due to non-payment of premium. The status of your policy is available at the branch that services your policies. Kanpur. Santa Cruz. Church gate. Patna. It is also available through our Interactive Voice Response Systems in select cities In cities connected by our computerized networks the status will be available in any of the branches. Policy can be anywhere in India: ‡ Citibank Kiosks at Industrial Assurance Building. Bangalore. A policyholder having an account in any Bank which is a Member of the local Clearing House can opt for ECS debit to pay premiums. Vijaywada. Hyderabad. The certified Mandate Forms are to be submitted to our BO/DO. It also provides other important information with respect to your policy.

However certain concessions dependent on the term for which you have paid the premiums are available with the exception of some plans for claims concession Availing Loans on Policies Many of our plans are of endowment type and you would be allowed to raise a loan against your policy should you require funds. Surrender of policy is not recommended since the surrender value would always be proportionately low. Should you decide to go in for insurance at this stage further insurance would be available to you at a much higher premium .cities online touch screen kiosks are also provided where you can view your policy status. Revival of Lapsed Policies If your policy has lapsed due to non-payment of premiums within the due date. You repay the loan with interest or continue paying the interest and allow the loan to be deducted at the time of the claim payments. A lapsed policy has to be revived by payment of the accumulated premiums with interest as well as giving the health requirements as required. Always keep your policy in force to ensure that your family gets their financial protection assured by your policy. till you revive your policy. Surrender Value This is the value which is the amount payable to you should you decide to discontinue the policy and encash the same from LIC. More over if it is a participating policy the Bonus get attached to it as per prevalent rules. Further loans on policies are also allowed after deduction of earlier out standings Most financial institutions too allow loans against LIC policies based on the value LIC quotes on request from you. Surrender value is payable only after three full years premiums are paid to LIC. the terms and conditions of the policy contract are rendered void.

because your age would have advanced since taking out the earlier policy.60. Disability And Death Claims: When your Survival Benefits (For Money back policies) or maturity benefits are due. if the survival benefit amount is less than or equal to Rs. for any alterations like change of address and for availing loans etc. Gaurav Kumar Gupta BML/01/14 Therefore retention of earlier policies and continuation of all policies without allowing them to lapse is the best strategy for continuing life insurance protection. Maturity. You will need to know which branch of LIC services your policy because you will require their help in getting your Maturity/Survival Benefits. . we send intimations to you in advance. 000/. If such intimations have not come to you before the due date kindly inform us so that we may take necessary action Policies Under Salary Savings Scheme If you have taken your policy under salary Saving Scheme please read the following suggestions: 1. For each Salary Savings Scheme Policy your employer deducts the premium from your salary and sends a consolidated cheque for all the policies of the employees to a designated Branch of LIC. You can find out which Branch of LIC your policy file will be serviced either from your Agent or from the pay roll department of your employer.the same will be sent to you directly without policy or discharge forms with a few exceptions. 3. However. Survival Benefits. where all the policy files are maintained. 2.

Your premium must come through your employer only. Otherwise please convert the mode into quarterly. half yearly. In case you are leaving your employer for a new job or joining another firm. This way you also get a discount on the premium payable. Leave a permanent local address with us so that we can reach you wherever you are even after many years. 7. After you join your new place of posting please ask your employer the LIC Branch where the premiums are being remitted by your office there and inform the LIC Branch which was servicing you earlier so that your policy files can be transferred.4. 6. 5. We do not have systems to adjust single installments received from our policy holders. in time. half yearly or yearly mode. Always ensure the continuity of premium payments to avoid frequent revivals of policy. In case you are in a transferable job please inform the designated Branch of LIC about your new place of posting. you have the facility to either continue the Gaurav Kumar Gupta BML/01/14 policy under the Salary Savings Scheme of your new firm or to convert the payment mode into quarterly.Please do not send any installments directly to us. 8. They may be also subject to the . The contractual implications of your policy will be subject to the terms and conditions of your proposal and the policy document issued to you. This way your records will never be at correct place and will receive the services from us like maturity. This may become a cumbersome process for a person who is in a transferable job. or yearly and pay directly. Disclaimer: The information contained herein is only to guide you and does not purport to be binding on either party.

3. Inform your spouse/Parents/Children as to where the policy is kept. like premium notices. Helpline To ensure that you get the best out of your policy please read our guidelines carefully. In case you are handing over the policy bond to any person or office. please inform the new address to us. The months in which premium are due are given in the Policy bond.. will get delayed in reaching you. 8. etc. even if our notices do not reach you. There may be a postal delay. 6. You will also require it if you are availing a loan or want to assign your policy. The policy number is consisting of nine digits and can be found at the top left hand corner of the policy bond. including the LIC office please take a written acknowledgement.rules and regulations of the corporation notified from time to time which may be subject to revision and change. When you shift residences. DD or Money Order. It will be required at the time of maturity or Survival Benefit. . 7. Remember to quote the policy number every time in your correspondence.You may pay the premium by Cheque. The contract will also be subject to the prevailing laws of the country. Ensure that the nominees name is correctly incorporated in the policy bond. 4. Gaurav Kumar Gupta BML/01/14 5. 1. 2. Otherwise any communication we send to you. Check your policy bond and see if your date of birth is correctly given therein. discharge vouchers.Keep the policy bond safe. Remember to pay your premium in time.

98% in 2006-07. Of the total number of claims received.43%.02 lakh claims recorded by LIC. The number of claims rejected by private insurers as a percentage of claims booked was 13. for any servicing matter.9. contact the Servicing Branch of your policy. If such intimations have not come to your even within one month of the due date kindly inform us so that we may take necessary action. for obtaining general information.94% of claims. 10. When your Survival Benefits (For Money back policies) or maturity benefits are due. However. Our Branches are our Operating Units. while the claims rejected by LIC were 1. Claims pending with private insurers .When in doubt call your agent or the Branch from where you took the policy. Claim¶s Settlement¶s History MUMBAI: The percentage of rejected claims to total claims is much higher for private life insurance companies compared with state-owned Life Insurance Corporation (LIC). private life insurance companies settled 72. Hence.7% of the claims.139 individual death claims in 2006-07 compared with 6. we send intimations to your three months in advance. private life insurers received 13. According to data released by the Insurance Regulatory and Development Authority (IRDA). you can contact any of the Branches of LIC. while LIC managed to settle 96.

LIC paid Rs 4289. So.63% for LIC. the first are the maturity claims where the policyholder gets the savings that accrue under his policy at the end of the term. Section 45 IA of the Insurance Act 1938 allows insurers to reject claims if there is suppression of material fact by the insured. Life insurers receive two types of claim.28 crore as death claim benefits against Rs 155. and usually there is no dispute on maturity claims. 2007 stood at 13. The second set of claims. the insurer can reject his claims. if a proposer suffers from a serious ailment which is not disclosed.Gaurav Kumar Gupta BML/01/14 as on March 31. which are far fewer. are death claims. Bulk of the claims comes under this category.46 crore paid by private life insurers.32% of total claims received against 1. any information that has bearing on the mortality of the proposer is considered to be a material fact. . In life insurance. as these payments are akin to repayment of a maturing bond.

the Supreme Court has said that the clause cannot be used unilaterally and it is for the insurer to establish that the nondisclosure has a bearing on mortality. Now. repudiations were higher in group policies.However. insurers double check on whether the terms of the policy have been strictly met. with the private life industry being in its seventh year. Also. According to an official with a private life insurance company. Early claims are those which occur within two years of the policyholder acquiring a policy. private life insurers did not have much of a claims experience. In such claims. In the first few years of operations. . Therefore. given that private companies have been only a few years in existence. their share of early claims are higher. there has been a substantial number of maturity and death claims. a comparison on claims servicing between the private sector and LIC was not possible.

necessary claim forms are sent by the Branch Office for completion along with instructions regarding the procedure to be followed by the claimant. Claimant·s relationship with the deceased ‡ On receipt of the intimation of death.000/.60. The date of death 5. quoting the Policy Number.intimation from the Branch Office concerned. The death of the policyholder should be immediately intimated in writing to the Branch Office where the policy is serviced along with the following particulars: 1. Death Claims: ‡ If the life assured dies during the term of the policy. The cause of death and 6. Death Certificate issued by concerned Authority 4. The No. ‡ . he/she should contact them./s of the policy/ies 2. The name of the policyholder 3. ‡ The claims which have arisen after a period of three years are treated as non-early claims and settled within 30 days from the date of receipt of all requirements. death claim arises. ‡ Survival Benefit payment up to Rs.are settled without insisting for Policy Bond and Discharge Voucher.

in the event of the death of the life Assured within a period of six months or one year from the date of the first unpaid premium. ‡ The Corporation grants claims concessions under certain Plans whereby payment of full sum assured is made. ‡ The claim is usually payable to the nominee/assignee or the legal heirs. Only in case of fraudulent suppression of material information is the liability repudiated. if the deceased policyholder has not nominated/assigned the policy or if he/she has not made a suitable provision regarding the policy moneys by way of a Will. the claim is payable to the holder of a Succession Certificate or some such evidence of title from a Court of Law. This is to . Gaurav Kumar Gupta BML/01/14 Network of LIC Claim Review Committee: The Corporation settles a large number of Death Claims every year.The claims that have arisen within a period of two years from the date of commencement of the policy. are treated as early claims and investigation is compulsory in such cases. provided premiums have been paid for at least three years and five years respectively. as the case may be. subject to the deduction of unpaid premiums with interest till the date of death and unpaid premiums falling due before the next anniversary of the policy. However.

Even in these cases. The Claims Review Committees of the Central and Zonal Offices have among their Members. very small. he said. appropriate decisions are taken. The number of Death Claims repudiated is.ensure that claims are not paid to fraudulent persons at the cost of honest policyholders. policyholders and public. . policy position. however. a retired High Court/District Court Judge. Besides. said about 1500 branches would be getting covered under MAN in which the premium amount of the policy holder could be remitted in any branch. LIC southern zonal manager. This has helped providing transparency and confidence in our operations and has resulted in greater satisfaction among claimants. All Life Insurance Corporation branches in the country would be interconnected under Metro Area Network (MAN) inaugurated here on Thursday. Speaking at the function. K Vaidyalingam. In every one hour the system got upgraded. an opportunity is given to the claimant to make a representation for consideration by the Review Committees of the Zonal office and the Central Office. revival and quotation from the network. the policy holder gets his status report. depending on the merits of each case. As a result of such review.

adding. LIC has introduced a new group insurance scheme for Corporation Bank deposit holders. INTERNATIONAL OPERATIONS LIC Fiji LIC Mauritius .2 lakh agents. the first being Kozhikode and Thiruvananthapuram in second position in southern region.000 crore through 2. The premium amount collected in 2001 was Rs. 92 per cent of policies were settled on or before maturity. Kottayam stood third in premium collection during the period between April to August 2002. he said. About settlement of claims.74. Our expanding efforts have been consistent and are evident though our associations given below for your reference. Gaurav Kumar Gupta BML/01/14 LIC was in a better position and 100 per cent connectivity was taking place.32 crore new policies by 8. INTERNATIONAL OPERATIONS/ASSOCIATES LIC has always acknowledged the need to expand.In southern region there are about 10 lakh new policy holders with a business of Rs 6500 crore.

Benefit offered to Customer¶s LIC the best-known Indian brand: Chidambaram Gaurav Kumar Gupta BML/01/14 . KSA.S.LIC United Kingdom LIC (International) B. LIC Mauritius Offshore Ltd. LIC Co-ordinating Office in India ASSOCIATES LIC Housing Finance Ltd. Insurance. Bahrain LIC (Nepal) Ltd LIC (Lanka) Ltd Gaurav Kumar Gupta BML/01/14 Saudi Indian Company for Co-op. LICHLF Care Homes Ltd. LIC Mutual Fund AMC Ltd.C (C).

³ Photo: Shaju John CHENNAI: Describing Life Insurance Corporation of India as the best-known Indian brand. LIC. Others from left are D. and A. Chidambaram launching LIC·s web portal in Chennai on Tuesday.K. Mehotra. Chairman. Chidambaram. Union Finance Minister P. Shukla.FROM STRENGTH TO STRENGTH: Union Finance Minister P. said on Tuesday that even after the opening up of the . Managing Director.K.

Launching LIC's e-portal here. bonus. It is clearly recognised as the market leader." All 2." Gaurav Kumar Gupta BML/01/14 The e-portal (licindia. loans and change of address. Mr. It will facilitate online payment of premium and has details of the doctors and agents. It is nearly world class now.048 . he said the Corporation "supported us (government) when we opened up insurance because it was confident of doing better in a competitive environment. The objective is to provide world-class service. the Corporation remained the market leader. Noting that the State-owned Corporation utilised information technology in its relentless effort to remain the leader.insurance sector to private firms.com) will provide information on policy status. It also has a branch locator and `maturity alert' facility. Chidambaram said: "My goal is to make LIC a world class insurance company. premium payment. LIC continues to be the market leader with 88 per cent market share of new policies and 78 per cent of premium.

Chidambaram said on Whole Life policies it would be Rs. Chidambaram said the e-portal was another example of LIC's constant innovation using information technology. Barring ten.000 sum assured). LIC Chairman A. 32 and Rs. The bonus is in addition to the special bonus announced during the golden jubilee celebrations of LIC in September. Some of the multi-interfaces it offered to customers included call centres. Bonus rates Announcing the bonus rates on LIC policies.K.branches of LIC. Mr. Shukla said the Corporation catered to 18 crore . 45 on money-back policies. 50. SMS and satellite branches. which had been adjudged the best user of IT by NASSCOM. The bonus for Jeevan Dhara and Jeevan Suraksha schemes has been enhanced and the terminal bonus retained at last year's level. On endowment policies the bonus ranges from Rs. IVRS. 34 to Rs. 71 (per Rs. 1. It will be between Rs. were fully automated. Mr. all the branches were networked.

managing director of LIC. `CNBC Awaaz Consumer Award 2007 as the best Life Insurance Company'. K. 3. LIC is 51 + years old in the field of life insurance and money management. LIC's Life Fund size as on day is more than Rs 5 Lakh Thousand Crores ! 2. Perhaps. Sridhar.policy holders and the size of the life fund had crossed Rs. he said the portal would enable customers to access a range of services from the comfort of their home." Gaurav Kumar Gupta BML/01/14 Why LIC is trusted brand of India? 1. `Golden Peacock Award for .Any LIC policyholder or the nominee will vouch for the best claims settlement from LIC. `Outlook Money Award 2007 as the best Life Insurer'.85 lakh crores. Stating that LIC believed in deploying the latest technology for the benefit of all concerned. As a Govt of India owned Company.LIC has won `NDTV Profit Leadership Award 2007 under Life Insurance Category'. this is the only institution where you as a policyholder are virtually chased till such time your claim cheques is handed over to you ! 3. said: "Better servicing alone can give us new business.

You can pay your premium anywhere in the country. 7. LIC has kept on updating its portfolio by bringing in new plans depending on public requirement. This is the only corporation that is catering to more than 190 million satisfied policyholders in India and abroad..1 Trusted Service Brand for the 4th successive year by ET Brand Equity Survey. More than 2050 LIC branches all over India are connected together to serve you.All LIC Plans come with Sovereign Guarantee i. only LIC plans enjoy this Govt Guarantee. 6. `Web 18 Genius of the Web Award 2007 and many more'. as of now. Gaurav Kumar Gupta . 4.LIC adjudged No. More than 50 of them are most popular and can be customized to meet any of your requirements. During its long existence. This is one of the very few institutions that pays exgratia interest on pending maturity claims ! 8. Money Plus.excellence in Corporate Governence 2007'. Infact. Govt of India Guarantee regarding repayment. 10.latest LIC Unit Linked Plan is a case in point. LIC ULIPs have become extremely popular due to the returns they offer.LIC has been adjudged Superbrand India for 2004-06 and Reader's Digest `Trusted Brand' Asia 2007. 5. 9.e.

11.All LIC plans are characterized by low premium. In addition. Add to this package. For companies making profits. 15. this is a very good incentive indeed. 12. you will find investment on LIC plans one of the most coveted investment options available to you.Through Employer-Employee Insurance scheme. 14. high life insurance coverage and a vast package of benefits offered by them. through this scheme. section 80C benefit and section 10(10D) benefit on the maturity proceeds.Entire contribution to LIC Group Gratuity Scheme is a recognized business expense in the hands of the employer. The most popular among all the companies.LIC is declaring quite an impressive bonus (profits) on all its with-profits policies every year. you can recognize the worth of your most valuable employees whose absence you can ill afford to loose. 13.BML/01/14 Beneficiary for this Sovereign Guarantee is you and you alone as the policyholder/ would-be policyholder. the employer can transfer his gratuity liability to the corporation and fund the same under cash accumulation scheme. Extra attraction under LIC Bonus is (a) it is calculated every year on the insured amount and not on the premium paidand (b) entire bonus received along with insured amount either by you on maturity of your .Premium paid under Key-Man Insurance plan is a recognized business expense under section 37(I) of the Income-Tax Act.

None of the policy benefits get affected as a result of borrowal.Most of the LIC plans come with Riders to take care of Total and Permanent Disablement due to Accident and some of the most dread diseases that may result in loss of income. 17. LIC is India¶s most trusted brand.On most of the LIC plans.LIC pension plans that guarantee you life pension are extremely popular. 19.policy(ies) or by your nominee in your absence during the currency of your policy(ies) is free from income-tax under section 10(10D) of the Income-tax Act. Gaurav Kumar Gupta BML/01/14 18. Infact. Due to these reasons and lot more. Chief attractions of this advance payment of premium are (a) there is no possibility of your overlooking your premium payment and getting your policy(ies) lapsed wherever you are in the world and (b) you will be earning 5% tax-free interest on the unutilized portion of the amount left with LIC after apportioning the regular installment. 16. INSURING LIVES AND ENSURING .You can pay your premium 3 years in advance at 5% discount. policy loans offer one of the most attractive investment opportunities. You can park your hard earned money safely with the corporation and enjoy pension as long as you are alive. you can borrow to take care of your immediate monetary requirements. LIC should be your obvious choice for all your life insurance requirements.

Insurance Institute of India etc. Largest Institutional Investor in India and Second largest in Asia among insurers. Stock Holding Corporation of India.An Institution Builder promoting many financial and insurance institutes like NSE. LIC Mutual Fund. SUPER BRAND & MOST TRUSTED SERVICE BRAND OF INDIA. LIC is the . National Insurance Academy. (Source: Asian Investor) LIC .SMILES from more than 50 Years. NCDEX. BEST IT USER IN INDIA (NASSCOM ± 2003).

´ . It has underwritten more than 160 million policies.673.largest life insurer of India Asset value as on 31.598.3.2004: 3. Offers over 45 plans to cover your life at various stages Over 160 million customers and 1.048 branch offices (all computerized) of which 2019 are networked ´From all above we can say our money is safe and secure with assured returns. 2.1 million agents.4 mn(INR).

LIC is the only Life Insurance Company making profits. leans on LIC every time that the Stock Market crashes. That·s a 14 digit number! No company in India can boast of such figures. It is a different story that today LIC has become so powerful that the govt. 2. LIC is owned by the government and therefore it is the only company besides the PPF that has the sovereign guarantee of the govt. Imagine having an Asset base of over Rs 6 Lac Crore. Mind boggling.Project Analysis The Positive side of LIC as well as Negative side of LIC. First let·s talk about the Positive side of LIC 1. of India. I encourage other readers to correct me if I am wrong and also add light to any point that I may have missed. . Most of the Private Insurers including the self proclaimed market leaders .

then how will they manage to pay the Claim amount? Afterall no Insurance company is here to do charity business. yes over 10 lac agents and now universities in western countries are trying to study how a company managed to appoint such a large sales force. please visit IrDA·s website to see the claims settlement performance of various companies. Again.like ICICI and Bajaj Allianz are booking heavy losses. The point is that if an insurance company makes losses year over year. 3. When it comes to paying claims. 4. again LIC is Number One with the claims settlement ratio of more than 99%. A sales force of over 1 million! Truly a remarkable achievement. Gaurav Kumar Gupta BML/01/14 Project Analysis . LIC has the world·s largest sales force. Private Insurers cannot match LIC·s ability on claims settlement. Check IRDA website in the Annual Report column.

Many people argue that LIC has not been able to penetrate the market as it has insured only 15% of the population. If you ask the Branch Manager for the complaints book. # NOW THE NEGATIVE POINTS OF LIC # 1. Try writing a complaint to them and they wont even bother to reply back. education and clothing. At a personal level i feel that LIC has done a satisfactory job of insuring people. he probably wont have it in place. Will such a person first feed his children or buy Insurance ? Lets not forget that a majority of the Indian population is poor and a substantial percentage is living below the poverty line. so many people who don·t have access to basic medication. so many people who don·t have basic necessities of life like food. so many people who die of starvation.5. shelter. My point is. in a poor country like India where there are so many people living below the poverty line. The Administrative staff in LIC is in deep slumber. If an Agent complains .

the office is flooded with forms & sales literature. LIC is lacking in Effective Leadership in recent times. Managers having designations like Marketing Manager or . 2. Agents are motivated by the Managers to split the policies.If an Agent complains against any staff. As I earlier said. This is very disturbing. Competitions for Agents are held with Prizes being offered on the number of policies sold and not on the number of lives insured. 3. But surprisingly just a week before any scheme is about to close. most of the time its out of stock. then the Agent is black listed and next time onwards his work is not done. This not only adds to the inconvinience of the policyholders but it also increases the expenses of LIC. In order to show a better performance & achieve branch Targets. However if an agent wants the forms or sales literature. Therefore many Agents are tempted to split the policies in order to get better prizes.

Sales Manager donot have the capability to motivate an audience at a meeting. 5. Its a pity ! Gaurav Kumar Gupta BML/01/14 4. payment of premium in several branches. Even the Senior level managers cannot make effective presentations or design a sales strategy. Though LIC has more than 2000 branches. LIC has no branches in Bandra East. Andheri West. bring more policies!·. Whats the use ? In the suburbs where most of the people reside. etc. In Mumbai·s Fort area. Mahim. it will immensly help the policyholders. Santacruz East. policyholders still face problems in revival of their policies. LIC has more than 20 branches within a radius of 1. they wont know.5kms. If you ask them how to bring more policies. Khar East & West. Even though LIC claims to have taken several initiatives in the IT sector. Yes this is true even in a city like Mumbai. Their only mantra at an Agents meeting is "Friends. If LIC gives a thought to systematic relocation of its offices. change of . Vile Parle East. they are not systematically located. there are no branches at all. Matunga. Jogeshwari West.

i would say that LIC will never cheat a Policyholder in payment of claim. The After-sales policy services department needs to be revamped. If a claim cheques is handed over by a courteous and smiling employee of LIC. etc. it will enhance the image of LIC in . Policyholders feel that LIC agents are humble while selling a policy and thereafter they fail to provide any service to the client.mode. but at the same time everyone will agree that LIC is not responsive to the needs of the customer. If you have purchased an LIC policies then dont forget to pay the premium on time. that even a good agent finds it difficult to get the work done from the administrative staff. change of address. The truth is that LIC is so weak in policy services department. and when your policy gets matured LIC will honestly pay your Maturity amount on time. The employees are sometimes rude in their behaviour with the Policyholder. To sum up.

LIC is a Cult. Imagine India·s most Gaurav Kumar Gupta BML/01/14 . then it will send the wrong message in the minds of the policyholders. on News Channels. etc.the mind of the policyholder. Imagine 10 lac agents and 1 lac employees serving 16 crore policyholders in India. Daily you can hear someone or the other talking of LIC in local trains. As i earlier said. in your own offices. at fish markets. LIC is a Religion. Today LIC is not just an Insurance Company. at restaurants. If a company like LIC starts sponsoring irrelevant awards like Zee Cine awards which it had done 2 years ago. LIC is a Movement. LIC has started lacking in effective leadership. You cannot deny that LIC has become the way of life in India.

.famous institution sponsoring a Cine Awards function stating that it was done to increase the brand awareness of LIC. It is time that the top level officials of LIC come out of their air-conditioned cabins and travel by public transport for sometime in order to feel the pulse of the common man. That sounded like a big joke.

This is critical for the counterinsurgent to understand. STXs must be developed locally or borrowed from units who have already been through the training. civil. Instinctive behavior and ingrained training must be adjusted to fit new circumstances. military and . is also great. The potential to attract international attention. LIC is not conventional warfare. many pitfalls outlined above can be avoided. Peacetime Contingency Operations and conduct training as usual. while briefing that the LIC block has been checked.Conclusion After Finding·s we can see about LIC features and his The tendency to take the expedient approach and focus on the far right of the LIC spectrum. The probability of becoming involved in a LIC operation is high. will lead us to a possibly fatal false sense of security. even with limited forces. The insurgent·s violent and coercive strategy is applied so as to achieve political. Units have demonstrated that with a balanced training focus and proper preparation.

doctrinal precision. combined arms. In terms of military principles in counterinsurgency. initiative.google.com Magazine .com www. the target of the insurgent·s violence and coercion is the population. Hence. force precision.psychological results. integrated communications. effective population based intelligence. This is because the population is the centre of gravity in LIC. professionalism. Therefore the counterinsurgent must also focus on the population to be successful.licindia. a civil affairs approach and high levels of training are critical. MS office. In Gaurav Kumar Gupta BML/01/14 addition. the counterinsurgent must counter all of these strategic elements individually. restraint. precision engagement. joint force. independence. So we can say that so many merit¶s and Demerit¶s in life insurance Corporation of India B IBL IO GR A PHY Books CMIE Database programming with MS Office. Visual vmpro software (Lic) Important websites± www.

photograph the seller. record the seller·s thumbprint.A Dealer is not required to obtain the seller¶s identification.-- A.Yogkshem ±Lic Magazine Outlook Express Business today Finance & Banking Money Outlook News Paper Business standard Times of India Economic times Hindustan times LIMITATION OF THE PROJECT Lic has been so many limitations--. or have the seller complete the Declaration of Proof of Ownership if the Dealer .

The Dealer must record on the transaction report the physical address of the sale location and the date of the acquisition.The item is acquired from a business whose acquisitions of regulated property consist exclusively of donated items and/or purchases from a 501(c)3 organization. date. shipped. the name of the internet website that listed the item. garage sale. and address fields of the transaction report form. The Dealer must record on the transaction report the seller·s email address or seller·s identification.complies with the remaining requirements in the Administrative Rules and if: 1. must be held in compliance .The item is acquired through consignment by a Dealer from a person who lives more than 150 miles from the City of Portland and the consigned property is mailed. 2. 4. the Dealer must write on the transaction report a complete. or sent by courier to the Dealer.The item is acquired by the Dealer from a yard sale.The item is acquired during a trade show.The item is acquired through an internet transaction. 5. Items acquired under Subsection A. and the date of the acquisition. The Dealer must record the name and location address of the business in the name and address fields of the transaction report form and the date of the acquisition. legible and accurate description of the regulated property of sufficient detail to distinguish like objects one from the other. Items acquired during a trade show may be sold or traded during the trade show without being held. The Dealer must also record the name and date of the event and the address of the venue in the name. Items still in a Dealer·s possession at the end of the show will be subject to the hold period requirement in effect for that Dealer·s acquisitions of regulated property. 3. At the time of Gaurav Kumar Gupta BML/01/14 the transaction. All items acquired during a trade show by a Dealer must be reported. estate sale or swap meet.

or have the seller complete the Declaration of Proof of Ownership if the Dealer complies with the remaining requirements in the Administrative Rules and if the item is used. and the date of the acquisition. The item does not have to be held. offering in-store credit that must be used for merchandise only and not redeemed for cash. A Dealer is not required to make a copy of the acceptable identification obtained from the seller. photograph the seller. and 2. photograph the seller. not tendering payment to the seller for a minimum of 15 days after the regulated property is delivered to the Dealer. The Dealer must record on the transaction report the name and location address of the business in the name and address fields of the transaction report form. and 4. Holds each and every item of regulated property for a minimum of 15 days from the date of acquisition. The Dealer must keep a receipt for the item from the licensed business that includes the licensed business· name and a description of the item. C.with the hold period requirement in effect for the Dealer·s other acquisitions of regulated property. record the seller·s thumbprint.Notifies the Director and the Chief of Police in writing that .Complies with the remaining requirements set forth in the Administrative Rules. Conducts each and every acquisition of regulated property by either: a. or b. The receipt must be retained at the Dealer·s business location for one year or until the item is sold. B. or Gaurav Kumar Gupta record the seller¶s thumbprint if the Dealer complies with the following requirements: 1.A Dealer is not required to obtain the seller¶s identification. regulated property acquired from a licensed business. and 3. whichever is longer.

photograph the seller. or record the seller·s thumbprint when the Dealer acquires an item of regulated property on consignment if the Dealer complies with the following requirements: 1.Does not tender payment to the consignor for a minimum of 15 days after the regulated property is delivered to the Dealer. ´So these are the limitation of life insurance Corporation of India. D. 2. In every company has so many limitation but LIC has limitation but It is no -1 and trusty brand of India.each and every acquisition of regulated property will be conducted by not tendering payment to the seller for a minimum of 15 days after the regulated property is delivered to the Dealer.A Dealer is not required to make a copy of the acceptable identification obtained from the seller.Holds each and every item of consigned regulated property for a minimum of 15 days. Gaurav Kumar Gupta . Complies with the remaining requirements in the Administrative Rules. 3.µ So we can say that LIC is best service provider and trusty brand of India.

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