PROJECT REPORT ON CUSTOMERS SATISFACTION IN

(SATISFACTION OF CUSTOMERS WITH THE SERVICES OF THE LIFE INSURANCE INDUSTRY IN INDIA WITH SPECIAL REFERENCE OF LIC)

P RE F AC E
The field of insurance has taken a giant leap at the threshold of twentieth century. Insurance have become an integral part of life of man all over the globe. The proverb ‘Need is the mother of invention’ is proving equally correct in case of insurance.

Insurance have already had a considerable impact on many aspects of our society. This project on “life Insurance corporation of India” deals with the automation of various activities done in insurance like how the insurance companies doing there business and what is the feature of life insurance.

ACKNOWLEDGEMENT

We are hearty grateful to Mr. ………………………….sir (director). They have always been an invaluable source of inspiration had work, sincerity and dedication. It gives me immense pleasure in submitting this project on “Life Insurance Corporation of India”. I have developed this project in partial fulfillment of b.b.a 6th sem from ‘sarswati institute of management and technology I would like to express my sincere ineptness to my Project Guide mrs preeti ma,am for his constant guidance and valuable support during the project work. Encouragement and excellent guidance in the successful completion of the project work. And of course nothing could have come true without the support of my family, friends and all the classmates for their constant encouragement and useful tips through out my project. I will always

Student name- Contents Chapter 1.grateful to them.introduction And objective Chapter 2-industry profile Chapter 3-company profile Chapter 4-subject matter Introduction of topic Research methodology .

bibliography Chapter 1 .Chapter 5.data analysis and interpretation Chapter 6-conclusion Cchapter7-recommentation Chapter8.

INTRODUCTION .

as it ought to be. be clearly understood that the following content is by no means an exhaustive description of the terms and conditions of an LIC policy or Its benefits or privileges. Any LIC Agent will be glad to help you choose the life insurance plan to meet your needs and render policy servicing. In our country. the prominence of insurance is not as widely understood. For more details. . which is one of the most populated in the world. however. with special reference to LIC It should. What follows is an attempt to acquaint readers with some of the concepts of life insurance.INTRODUCTION LIFE INSURANCE IN INDIA Life insurance in India made its debut well over 100 years ago. please contact our branch or divisional office.

That of living till old age without visible means of support. That of dying prematurely leaving a dependent family to fend for itself. in short.What Is Life Insurance? Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. is concerned with two hazards that stand across the life-path of every person: 1. Life insurance. which eliminates 'risk'. By and large. substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. or • Unfortunate death. Customer satisfied with LIC service because the LIC totally concentrate customer relations and it makes customers attract towards the LIC . or • Specified dates at periodic intervals. Among other things. life insurance is civilization’s partial solution to the problems caused by death. 2. Life insurance is universally acknowledged to be an institution. if it occurs earlier. the contract also provides for the payment of premium periodically to the Corporation by the policyholder. The contract is valid for payment of the insured amount during: • The date of maturity.

a money-back policy with premium payment options.795 policies under new business. “The allotment of customer folio number for all our holders will still take a year’s time in this zone. with two being in Hyderabad and three in Bangalore. .” he added. get details on his/her policies. it has already started work on allotment of customer folio number to know each customer's holding. As on August 31. the zone has issued 12. in the wake of private players inching their way up in the life insurance sector. LIC is planning to start a new portal for its policyholders where a customer can log in.” A K Sahoo. Shortly.” H Nanda. Mangalore and Hubli. 2005. 2005 Life Insurance Corporation of India (LIC) is embarking on a number of customer relationship management initiatives to retain its foothold in the market. “This month. we will also be setting up five satellite branches in the zone. LIC (south-central zone). LIC also plans to launch three-four products this year with one of these being unit-linked insurance plan in October. Vijayawada and Visakhapatnam. information technology. LIC (south-central zone).47. the corporation plans to sell 15 lakh policies this year in the south central zone with the national figure being one crore. said. regional manager (marketing).LIC moves towards better customer relations Plans to start a new portal for its policyholders Our Regional Bureau / Hyderabad September 07. the zone will also see the launch of this system in Mysore. has been doing very well. change the resident address when he/she shifts to a new place and even take a printout of the income tax certificate. The Insurance behemoth is planning to tie-up with a number of banks to enable a payment gateway wherein the policyholders can make their premium payments via credit cards. said at a press conference organised on the occasion of the beginning of the golden jubilee year for LIC. Here the customer’s premium is automatically debited from his account at the time of payment. “The electronic clearance system that we have launched at Hyderabad. The portal is likely to be ready in a month’s time. Besides. regional manager. Regarding the recently launched Bima Gold policy. Bangalore.

OBJECTIVES OF THE STUDY The main objective of this study is to carry on brief study on “Customer satisfaction survey on insurance products of LIC Other objectives of this project are as follows:  To identify the insurance needs of the Indian population with respect to their emotional.    Comparative study of various insurance players in the market To study the varied reasons of availing life insurance plans To clearly understand the rationale behind the investment in policies of LIC and private sector insurance companies  To test the awareness of customers on various aspects of life insurance policies offered by LIC and other private sector insurance companies and find whether there is any relation between them.  The prime objective of the study is to find out the level of satisfaction of a . physical and financial conditions.

customer (policy holders or beneficiary) so far as the settlement of claims.  To find out the procedure of claim policy holder or the beneficiary Chapter 2 .

Industry profile Industry profile ABOUT THE ORGANIZATION Life Insurance in its modern form came to India from England in the year 1818. All the insurance companies established during that period were brought up with the purpose of looking after the needs of . Oriental Life Insurance Company stated by Europeans in Calcutta was the first life insurance company on Indian Soil.

But Indian lives were being treated as sub-standard lives and heavy extra premiums were being changed on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870. The United India in Madras. General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during . National Indian and National Insurance in Calcutta and the Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko. However. Bharat Insurance Company (1896) was also one of such companies inspired by natioalism. The Indian Mercantile. insurance companies came tito existence to carry the message of insurance and social security through insurance to various sectors of society. the Swadeshi movement of 19051907 gavwe rise to more insurance companies. house of the great poet Rabindranath Tagore. later with the efforts of eminent people like Babu Muttylal Seal.European community and Indian natives were not being insured by these companies. in Calcutta. the foreign life insurance companies started insuring Indian lives. Starting as Indian enterprise with highly patriotic motives. and covered Indian lives at normal rates.

the Life Insurance Companies Act. 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. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. But the act discriminated between foreign and Indian companies on many accounts. The Life Insurance Companies Act. India had no legislation to regulate insurance business. From 44 companies with total business-in force as Rs. In the year 1912. it was much later on the 19th of January. However. it rose to 176 companies with total business-in-force as Rs. that life insurance . putting the Indian companies at a disadvantage. 22. 298 crore in 1938. 1956. 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.the same period. The first two decades of the twentieth century saw lot of growth in insurance business. 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. and the Provident Fund Act were passed. Prior to 1912.44 crore.

About 154 Indian insurance companies. 16 non-Indian companies and 75 provident were operating in India at the time of nationalization. the ownership too by means of a comprehensive bill. and later. re-organization of LIC took place and large numbers of new branch offices were opened. 33 divisional offices and 212 branch offices. As a result of re-organization servicing functions were .in India was nationalized. 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. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956. providing them adequate financial cover at a reasonable cost. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. LIC had 5 zonal offices. 1956. and the Life Insurance Corporation of India was created on 1st September. apart from its corporate office in the year 1956. nationalization was accomplished in two stages. initially the management of the companies was taken over by means of an Ordinance.

Info Centres have been commissioned at Mumbai. 7 zonal offices and the corporate office. Kolkata.00 crores only in the year 1969-70. and it took another 10 years for LIC to cross 2000. It worked wonders with the performance of the corporation.transferred to the branches. It may be seen that from about 200. by 1985-86 LIC had already crossed 7000.00 crore mark of new business. New Delhi. 100 divisional offices. Hyderabad. Pune and many other cities. LIC has tied up with some Banks and Service providers to offer on-lint premium collection facility in selected cities. But with re-organization happening in the early eighties. and branches were made accounting units.00 crores of New Business in 1957 the corporation crossed 1000. Apart from on-line Kiosks and IVRS. leaner and closer to the . Ahmedabad.00 crore Sum Assured on new policies. The satellite offices are smaller. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. With a vision of providing easy access to its policyholders. Bangalore. Today LIC functions with 2048 fully computerized branch offices. LIC’s Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network. LIC has launched its SATELLITE SAMPARK offices. Chennai.

It has crossed the milestone of issuing 1.32. From then to now. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. 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. posting a healthy growth rate of 16. the first life insurance company on Indian soil started functioning. 2005. the first Indian life insurance company .customer. LIC ha crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. 1870: Bombay Mutual Life Assurance Society.01. LIC continues to be the dominant life insurer even in theliberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company.67% over the corresponding period of the previous year.955 new policies by 15th Oct. LIC has issued over one crore policies during the current year.

with a capital contribution of Rs..started its business. enjoyed a monopoly status and . LIC Act. the first general insurance company established in the year 1850 in Calcutta by the British. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. on the other hand. Life insurance Corporation of India (LIC) The Life insurance Corporation was established about 44 years ago with a view to provide an insurance cover against various risks in life. can trace its roots to the Triton Insurance Company Ltd. the corporation. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. The General insurance business in India. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 5 crore from the Government of India. 1956. viz. LIC formed by an Act of Parliament. A monolith then.

Its main asset is its staff strength of 1.6 million policyholders LIC OPERATES ALL OVER INDIA . And the markets savings and Investment products through its mutual fund. along with the Government and the GIC. It presently transacts individual Life Insurance business. it has helped establish the National Insurance Academy.24 lakhs employed and 2.000 crores annually to5. It pays off about Rs 6. seven zonal Training Centre and 35 sales Training Centers. LIC has hundred divisional offices and has established extensive training facility at all levels.become synonymous with life insurance. At the industry level. At the apex. is the Management Development Institute. grants housing loans through its subsidiary. group Insurance business. social security schemes and Pensions.048 branches and over six-lakhs agency force.

OBJECTIVES OF LIC .

the funds to be deployed to the best advantage of the investors as well as the community as a whole. without losing sight of the interest of the community as a whole.   Involve all people working in the Corporation to the best of their capability in . the primary obligation to its policyholders. keeping in view national priorities and obligations of attractive return.   Act as trustees of the insured public in their individual and collective capacities.  Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching allinsurable persons in the country and providing them adequate financial cover against death at a reasonable cost.   Maximize mobilization of people’ savings by making insurance-linked savings adequately attractive.   Conduct business with utmost economy and with the full realization that moneys belong to the policyholders. in the investment of funds.   Bear in mind. whose money it holds in trust.   Meet the various life insurance needs of the community that would arise in the changing social and economic environment.

” LIC of India is the one and only public sector life insurance Company in India. and by rendering resources for economic development. MISSION/VISION Mission “Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns.   Promote amongst all agent and employees of the corporation a sense of participation.” Vision “A trans-nationally competitive financial conglomerate of significance to societies and Pride of India. Some of the important milestones in the life insurance business in India are: .furthering the interests of the insured public by providing efficient service with courtesy. pride and job towards achievement of Corporate objective.

LIC formed by an Act of Parliament. 1956. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. with a capital contribution of Rs. viz. 1870: Bombay Mutual Life Assurance Society. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised.1818: Oriental Life Insurance Company. The General insurance business in India. 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. the first general insurance company established in the year 1850 in Calcutta by the British. . can trace its roots to the Triton Insurance Company Ltd. LIC Act. on the other hand. 5 crore from the Government of India. the first life insurance company on Indian soil started functioning. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses..

Chapter 3 Company profile .

D. 1956 Headquarters: Headquarters in Mumbai. Website: http://www. Vijayan (Chairman).com . S. K.000 Parent: NIL Subsidiaries: LIC Housing Finance Limited.licindia.Company profile Type: Public limited company or Government-owned corporation Founded: September 1. etc. India (Various other locations in India and abroad) Key people: T. Mehta and Thomas Mathew (Managing Directors) Industry: Life insurance Products: Insurance and Pension Plans Employees: Over 10.00.

Benefits under the plan are payable at prespecified durations irrespective of whether the Life Assured survives to the end of the policy term or dies during the term of the policy. 40% of the Basic Sum Assured along with . this plan also provides for an immediate payment of Basic Sum Assured amount on death of the Life Assured during the term of the policy. The plan can be taken by a parent on his or her own life. AssuredBenefit Payment of 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity. At maturity. In addition.Products of LIC LIC .Jeevan Anurag Benefits LIC’s Jeevan ANURAG is a with profits plan specifically designed to take care of the educational needs of children.

if any. if any shall be payable. LIC . Commencement of risk cover: The risk commences either after 2 years from the date of commencement of policy or from the policy anniversary immediately following the completion of 7 years of age of . at the end of the 20th year.reversionary bonuses declared from time to time on full Sum Assured for the full term and the Terminal bonus.Jeewan Kisore Product summary: This is an Endowment Assurance Plan available for children of less than 12 years of age. The policy may be purchased by any of the parent/grand parent. 19th year and 40% of the Sum Assured along with the reversionary bonuses and the terminal bonus. For example. Death Benefit Payment of an amount equal to Sum Assured under the basic plan immediately on the death of the life assured. 20% of the Sum assured will be payable at the end of the 17th. 18th. if term of the policy is 20 years.

they form part of the guaranteed benefits of the plan. Bonuses: This is a with-profits plan and participates in the profits of the Corporation’s life insurance business. half-yearly. It gets a share of the profits in the form of bonuses. LIC – Childs Career Plan Introduction: This plan is specially designed to meet the increasing educational and other needs of growing children. Premiums: Premiums are payable yearly. quarterly or monthly throughout the term of the policy or till earlier death of child. A number of Survival benefits are payable on surviving by the life assured to the end of the specified durations. A Final (Additional) Bonus may also be payable provided policy has run for certain minimum period. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. 7 years after the expiry of policy term).e. Once declared. It provides the risk cover on the life of child not only during the policy term but also during the extended term (i.child. whichever is later. .

half-yearly. quarterly.Jeevan Chhaya Product summary: This is an Endowment Assurance plan that provides financial protection against death throughout the term of the plan. half-yearly.Options: You may choose Sum Assured (S. LIC . Policy Term. LIC . Mode of Premium payment and Premium Waiver Benefit.).A. quarterly or through Salary deductions over the term of policy. Premiums: Premiums are payable yearly. Payment of Premiums: You may pay the premiums regularly at yearly. Besides payment of Sum Assured immediately on death. monthly or through salary deductions as opted by you throughout the term of the policy or till the earlier death. Premiums may be paid either for 6 years or up to 5 years before the policy term. Maturity Age. one-fourth of Sum Assured is payable at the end of each of last four years of policy term whether the life assured dies or survives the term of the policy.Child Future Plan .

Maturity Age.A.). LIC . Premiums may be paid either for 6 years or up to 5 years before the policy term. 7 years after the expiry of policy term).e. Options: You may choose Sum Assured (S. A number of Survival benefits are payable on surviving by the life assured to the end of the specified durations. It provides the risk cover on the life of child not only during the policy term but also during the extended term (i.Jeevan Shree Product summary: This is an Endowment Assurance plan offering the choice of many convenient premium-paying terms. Mode of Premium payment and Premium Waiver Benefit. Policy Term. It provides financial protection against death throughout the term of plan with the payment of maturity amount on survival to the end of the policy term. Payment of Premiums: You may pay the premiums regularly at yearly. quarterly or through Salary deductions over the term of policy.Introduction: This plan is specially designed to meet the increasing educational. half-yearly. . marriage and other needs of growing children.

provided the policy is converted in to a paid-up policy after the premiums . the Corporation has amended the above provision. considering the increased longevity of the Indian population. throughout the premium paying term or till earlier death. Guaranteed Additions: The policy provides for the Guaranteed Additions at the rate of Rs. If the payment of premium ceases after 3 years. However. Such reduced paid-up policy is not entitled to participate in the bonus declared thereafter but the bonuses already declared on the policy will remain attach. thereby providing for payment of sum assured plus bonuses in the form of maturity claim on completion of age 80 years or on expiry of term of 40 years from date of commencement of the policy whichever is later. Alternatively premium may be paid in one lump sum. 50/. quarterly. as opted by you.Premiums: Premiums are payable yearly. monthly or through Salary deductions. half-yearly. LIC .The Whole Life Policy This plan is mainly devised to create an estate for the heirs of the policyholder as the plan basically provides for payment of sum assured plus bonuses on the death of the policyholder. a paid-up policy for such reduced sum assured will be automatically secured provided the reduced sum assured exclusive of any attached bonus is not less than Rs. The premiums under the policy are payable up to age 80 years of the policyholder or for a term of 35 years whichever is later.per thousand Sum Assured for each completed year for first five years of the policy.250/-.

000/: No Upper Limit (Policies will be issued in multiples of Rs.000/.100. Half-yearly & Single payment Premium .for Sums Assured more than the minimum Sum Assured) Mode of premium : Yearly.25.00. LIC – Amulya Jeevan the Policy: Sum Assured : On Death during the Term of On Maturity: Nil RESTRICTIVE CONDITIONS Minimum age at entry Maximum age at entry Maximum maturity Minimum Policy Term Maximum Policy term Minimum Sum Assured Maximum Sum Assured age at : 18 years (completed) : 60 years (nearest birthday) : 70 years (nearest birthday) : 5 years : 35 years : Rs.are paid for 5 years.

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ORGANISATION STRUCTURE OF LIC Chairman Managing Director Executives Directors Chiefs Zonal Managers Regional Managers Divisional Managers 100 Seniors Divisional Managers Marketing Managers Sales Managers Senior Branch Managers (Head of the Branch) Assistant Branch Managers Sells Development Officers .

) PRO (Crisis Management Dept.) PRO (Publicity Dept.) . Communication Department 2.Different Agent PUBLIC RELATION DEPARTMENT The Public Relation Department in LIC is divided into three major categories. Namely: 1. Publicity Department Chief Public Relation Officer PRO (Communication Dept. Crisis Management Department 3.

CHAIRMAN OF LIC PUBLIC RELATIONS COMMUNICATION DEPARMENT PUBLICITY DEPARMENT .

T.CRISIS MANAGEMENT DEPATMENT CHIEF PUBLIC RELATION OFFICER The Chief Public Relation Officer of LIC is Mr. OBJECTIVES AND FUNCTIONS OF CHIEF PUBLIC RELATION OFFICER:- • The PRO is directly answerable to the Chairman Shri. V. PR represents whole organization. • The PRO looks after all the activities of the three departments all over India. Should know how to create enthusiasm. RESPONSIBILITIES OF CHIEF PUBLIC RELATION OFFICER :1. The PRO is responsible for the overall functioning of the PR department. • The PRO monitors the norms and values of all the branches. He is not a person. he is representative. He has to monitor the smooth functioning of the three departments. The above three committees are under the PRO. • Also he has to keep in close touch with the over-seas PR departments of LIC. Kulkarni. In crisis he has to give feedback as soon as possible.S. 5. He heads the PR department. • The new rules and regulations in India are informed to the PROs of the . 2. 4. 3. Vijayan. • All the policies implemented in India are informed to other PROs of the over-seas branches of LIC. M. Should know how to behave in a certain situation.

The conversations with the guests are directly done by the Communication Department PRO. • Since a major share of workload of LIC is in the public sector. Any social issue at any area is a news to be worked out for him. . the Communication Dept.over-seas branches. • Since LIC is closely related with the Public Sector. then only is the Crisis management Dept PRO present for the Press conference. • The PRO also holds regular workshops for the top management employees to motivate them to lift the spirit of the work culture. COMMUNICATION DEPARTMENT The PRO of this Department is an external PR. the PRO has to look after social responsibility as well as maintaining the image of the company. PRO has to also be in a close contact with the government officials. • He reports directly to the Chief PRO of the company. • He is also responsible for monitoring the overseas communications. He looks after:- • Arranging press conferences. • The PRO also has to provide information about latest policies to the communication department and ask them to public or air it through various mediums. the Chief PRO and the Communication Dept. • The PRO from this department should always keep a close eye on the latest happenings in the market. • The Press conference usually includes the CEO of the company. PRO. • If the case is of crisis. press releases and is in constant contact with the media. • The Communication Department PRO has to make arrangements for the guests and their overall honors.

• He also has to know the issues going within the other departments so that these issues are solved before they create crisis. From the overall history of LIC. (recent press releases of LIC issued by Communication Department PRO enclosed)…. it is seen that the company has never been into any major crisis. This itself is one of the best achievements. the communication Department PRO ensures that there is no communication gap between the company and the external concerned bodies. He is answerable to the Chief Public Relation Officer. • Building up a smooth communication between the Blue Collar and the White Collar.• He also has to motivate the employees in his department for constant progress in the strategies for communication.” Thus all the employees right from the day of joining are kept in close . • Arranging small workshops for all the employees. In short. he has been assigned many other internal responsibilities. • Motivating the lower employees. CRISIS MANAGEMENT DEPARTMENT The PRO in this department is an internal one. The strategy used by the PR here for crisis management is:“Wash the utensil before having food in it. sales executives and sales and marketing employees. The PRO from crisis management. though is here to handle crisis.

Today the publicity department PRO has to see to it that all the ads running are creating effect. Thus Zindagi Express is an Autobiography by LIC. Initially it was looked up by the Communication Department. The other insurance companies came up with the idea that insurance is for happy life. Initially. He is also to carry out various campaigns. They had started this unique campaign of auto biography from Delhi and . All the ads portrayed death. The PRO is the one who along with the Marketing department looks after the strategies for publicity. With a company so closely associated with the government. Just as humans celebrate their 50 years of life. even LIC is celebrating its life. restricting such practices is very difficult task. The very recent campaign is known as “Zindagi Express”. PUBLICITY DEPARTMENT The PRO of the publicity Department is an External PR. Thus the sales of LIC went down as people liked the idea of Life more than Death. Hence a separate publicity department was formed which worked only for publicity strategies. he is capable of writing an Autobiography. The Zindagi Express is a term that has been associated to the life of LIC. This fall was due to the emergence of the foreign insurance companies and their advertising strategies. and when any person has done a lot in his life. And regular workshops help to restrict cases like Corruption.contact with the Crisis Management Dept. This department was formed due to the fall of sales in the 1999. the ads shown by LIC always said “no worry even after death”.

During this journey they explain what all LIC has done for publics and what all it still intends to do To satisfy the consumers in lic they make effective public relations and consumer relations S.W. STRENGTHS .will cover the entire nation and end up in Delhi again.O. growth.W. ANALYSIS OF LIC A proper S.T.T. and upcoming future and prospective of the company.O. analysis of LIC has also been conducted to know better about the position.

1/2nd. Chapter 4 . Customer does not believe on private company.• LIC is on 1st rank among the Insurance player. Long-term plans of LIC are the main strength. Products cost are very low. • • • • WEEKNESS Low interest rate OPPORTUNITIES • • Good brand promotion. THREATS • • Competitors. After sales services. Entry of Private Insurance banks.% insurance has been covered..

Subject matter Introduction of topic .

Customers in human services are commonly referred to as . or is directly affected by your agency and receives or relies on one or more of your agency’s services or products.Research methodology Subject matter Introduction of topic What is customer satisfaction? Customer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency. A customer may be defined as someone who: • has a direct relationship with. The level of satisfaction is determined not only by the quality and type of customer experience but also by the customer’s expectations.

consumers or clients.service users. Why is it important? There are a number of reasons why customer satisfaction is important in Insurance Sector: • Meeting the needs of the customer is the underlying rationale for the existence of community service organizations. • An organisation with a strong customer service culture places the customer at the centre of service design. planning and service delivery. • Organizations that strive beyond minimum standards and exceed the expectations of their customers are likely to be leaders in their . Customer centric organisations will: • determine the customers expectations when they plan • listen to the customer as they design • focus on the delivery of customer service activities • Value customer feedback when they measure performance. Customers have a right to quality services that deliver outcomes.

sector. • Customers are recognized as key partners in shaping service development and assessing quality of service delivery. The process for measuring customer satisfaction and obtaining feedback on
organizational performance are valuable tools for quality and continuous

service

improvement.Customer

satisfaction,

a sinebuss term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.[1] There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms. Organizations need to retain existing customers while targeting non-customers;
[2]

. Measuring customer satisfaction provides an indication of how successful the

organization is at providing products and/or services to the marketplace. Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other factors the customer, such as other products against which the customer can compare the organization's products.

Customer Satisfaction in 7 Steps in LIC

rather than a voice on the phone or someone typing into an email or messenger program. We all know how annoying it is to wait days for a response to an email or phone call. though. be calm. . In the business of Website design. wanted and loved. let the customer know you're working on it. customer service is of vital importance. If you're not used to this sort of thing it can be a pretty nerve-wracking experience. When you do meet them. 1.It's a well known fact that no business can exist without customers. Even if you're not able to solve a problem right away. I believe that if a potential client spends over half the meeting doing the talking. 2. Because it's critical that you form a close working relationship with your client. Respond to Messages Promptly & Keep Your Clients Informed This goes without saying really. it's important to work closely with your customers to make sure the site or system you create for them is as close to their requirements as you can manage. Encourage Face-to-Face Dealings This is the most daunting and downright scary part of interacting with a customer. Rest assured. It's important to meet your customers face to face at least once or even twice during the course of a project. It might not always be practical to deal with all customers' queries within the space of a few hours. you're well on your way to a sale. What follows are a selection of tips that will make your clients feel valued. but at least email or call them back and let them know you've received their message and you'll contact them about it as soon as possible. it does get easier over time. confident and above all. My experience has shown that a client finds it easier to relate to and work with someone they've actually met in person. take time to ask them what they need.

At every step along the way I was emailed and told exactly what was going on. Be Friendly and Approachable A fellow SitePointer once told me that you can hear a smile through the phone. Now if they server had just gone down with no explanation I think I'd have been pretty annoyed and may have moved my business elsewhere. Have a Clearly-Defined Customer Service Policy This may not be too important when you're just starting out. 3. They also apologised repeatedly. courteous and to make your clients feel like you're their friend and you're there to help them out. 4. If a customer has a problem. They've had some trouble with server hardware which has caused a fair bit of downtime lately. There will be times when you want to beat your clients over the head repeatedly with a blunt object . That to me is a prime example of customer service. This is very true. But because they took time to keep me informed. what should they do? If the first option doesn't work. and at all times remain polite and courteous.A good example of this is my Web host. but a clearly defined customer service policy is going to save you a lot of time and effort in the long run.it happens to all of us. why things were going wrong. It's vital that you keep a clear head. it didn't seem so bad. and how long it would be before they were working again. which was nice. and I at least knew they were doing something about the problems. then what? Should they contact different people for billing and technical enquiries? If they're not satisfied with any aspect of your customer service. who should they tell? . respond to your clients' wishes as best you can. It's very important to be friendly.

You have all the images. Attention to Detail (also known as 'The Little Niceties') Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalised sign-up confirmation email for a service that you could tell was typed from scratch? These little niceties can be time consuming and aren't always cost effective. it's something. and most importantly. originals and files backed up on your desktop computer and the site is going really well. Making sure they know exactly what to do at each stage of their enquiry should be of utmost importance. achieving this supreme level of understanding with your clients will do wonders for your working relationship. During a meeting with your client he/she happens to mention a hard-copy brochure their internal marketing people are developing.There's nothing more annoying for a client than being passed from person to person. 5. but remember to do them. wanted and valued. it makes the customer feel welcomed. a couple of weeks later a CD-ROM arrives on their doorstep complete with high .and anywhere else it may be useful. or not knowing who to turn to. 6. As if by magic. Even if it's as small as sending a Happy Holidays email to all your customers. So make sure your customer service policy is present on your site -. It shows you care. Take this as an example: you're working on the front-end for your client's exciting new ecommerce endeavour. it shows there are real people on the other end of that screen or telephone. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out Sometimes this is easier said than done! However.

Projects can be late. something may not get done. like any aspect of business. The simple message: when you promise something. Meanwhile. is a practiced art that takes time and effort to master. safe in the knowledge this happy customer will send several referrals your way. or you might miss a deadline through no fault of your own. in your office. Clients don't like to be disappointed. deliver. What would you want from your business if you were the client? How would you want to be treated? Treat your customers like your friends and they'll always come back. In this case a quick apology and assurance it'll be ready ASAP wouldn't go amiss. technology can fail and sub-contractors don't always deliver on time. A note accompanies it which reads: "Hi. All you need to do to achieve this is to stop and switch roles with the customer." Your client is heartily impressed. Honour Your Promises It's possible this is the most important point in this article. Sometimes. and remarks to his colleagues and friends how very helpful and considerate his Web designers are. The most common example here is project delivery dates. Hopefully you'll be able to make use of some in your brochure. you mentioned a hard-copy brochure you were working on and I wanted to provide you with large-scale copies of the graphics I've used on the site. 7.resolution versions of all the images you've used on the site. you lay back in your chair drinking your 7th cup of coffee that morning. . Conclusion Customer service.

publications and various websites including the official website of LIC and various other company websites. (This research is fully based on secondary data ) . magazines. The published research reports and market studies also helped the researcher to guage into the problem.Research Methodology : Secondary data is collected from various bibliographical sources such as journals. novels.

Chapter 5 DATA ANALYSIS AND .

INTERPRETATI ON DATA ANALYSIS AND INTERPRETATION CUSTOMERS SERVICES LIC 50% HDFC 30% ICICI 20% OTHRS 10% PRECEPTION TOWARDS .

( LIC IS HAVE MORE CUSTOMERS RATHER THAN OTHERS) CUSTOMERS RELATIONSHIP DEPARTMENTS LIC 40% HDFC 30% ICICI 20% OTHRS 10% .

(IN LIC CRM DEAPARMENTS MOST TO SATISFIED THE CUSTOMERS) PUBLIC RELATIONS LIC 40% HDFC 30% ICICI 20% OTHRS 10% .

IN LIC MOSTLY CENCENTRATE ON PUBLIC RELATIONS LIC POLICIES AND BETTER PLANS LIC 50% HDFC 30% ICICI 20% OTHRS 10% .

I encourage other readers to correct me if I am wrong and also add light to any point that I may have missed.LIC IS ONE OF FIRST INSURANCE COMPANY WHICH PROVIDE MORE SERVICES Project Analysis The Positive side of LIC as well as Negative side of LIC. First let’s talk about the Positive side of LIC .

Mind boggling. The point is that if an insurance company makes losses year over year. It is a different story that today LIC has become so powerful that the govt.1. . That’s a 14 digit number! No company in India can boast of such figures. then how will they manage to pay the Claim amount? Afterall no Insurance company is here to do charity business. . of India. Most of the Private Insurers including the self proclaimed market leaders like ICICI and Bajaj Allianz are booking heavy losses. Check IRDA website in the Annual Report column. Imagine having an Asset base of over Rs 6 Lac Crore. LIC is the only Life Insurance Company making profits. 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. leans on LIC every time that the Stock Market crashes.

When it comes to paying claims. again LIC is Number One with the claims settlement ratio of more than 99%. in a poor country like India where there are so many people living below the poverty line. My point is. 4. LIC has the world’s largest sales force. Private Insurers cannot match LIC’s ability on claims settlement. A sales force of over 1 million! Truly a remarkable achievement. Many people argue that LIC has not been able to penetrate the market as it has insured only 15% of the population. 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. so many people who don’t have access to basic medication. so many people who die of starvation. so many . 5.3. please visit IrDA’s website to see the claims settlement performance of various companies. Again.

Chapter 7 . 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. shelter. At a personal level i feel that LIC has done a satisfactory job of insuring people.people who don’t have basic necessities of life like food. education and clothing.

Recommendations and Suggestions Recommendations .

C # NOW THE NEGATIVE POINTS OF LIC # .D.TO CONVERT ALL NEGATIVE POINT IN POSITIVE TO SIT IN FIRST LEVEL IN INSURANCE AREAS FOREVER AND IMPROVE Q.

In order to show a better performance & achieve branch Targets. But surprisingly just a . then the Agent is black listed and next time onwards his work is not done. 2. Try writing a complaint to them and they wont even bother to reply back. Therefore many Agents are tempted to split the policies in order to get better prizes. If an Agent complains against any staff. The Administrative staff in LIC is in deep slumber. he probably wont have it in place. Agents are motivated by the Managers to split the policies. This not only adds to the inconvinience of the policyholders but it also increases the expenses of LIC. If you ask the Branch Manager for the complaints book.1. most of the time its out of stock. Competitions for Agents are held with Prizes being offered on the number of policies sold and not on the number of lives insured. However if an agent wants the forms or sales literature.

5kms. 3. . LIC is lacking in Effective Leadership in recent times. Whats the use ? In the suburbs where most of the people reside. If you ask them how to bring more policies. This is very disturbing. Yes this is true even in a city like Mumbai. Managers having designations like Marketing Manager or Sales Manager donot have the capability to motivate an audience at a meeting. bring more policies!’. LIC has more than 20 branches within a radius of 1. In Mumbai’s Fort area. the office is flooded with forms & sales literature.week before any scheme is about to close. Khar East & West. LIC has no branches in Bandra East. there are no branches at all. Even the Senior level managers cannot make effective presentations or design a sales strategy. Their only mantra at an Agents meeting is "Friends. they are not systematically located. they wont know. Though LIC has more than 2000 branches. As I earlier said. Its a pity ! 4.

Andheri West. it will immensly help the policyholders. etc. The truth is that LIC is so weak in policy services department. To sum up. Mahim. Vile Parle East. i would say that LIC will never cheat a Policyholder in payment of claim. Policyholders feel that LIC agents are humble while selling a policy and thereafter they fail to provide any service to the client. Matunga. etc. Jogeshwari West. 5. The After-sales policy services department needs to be revamped. that even a good agent finds it difficult to get the work done from the administrative staff. change of address.Santacruz East. policyholders still face problems in revival of their policies. payment of premium in several branches. If LIC gives a thought to systematic relocation of its offices. change of mode. but at the same time everyone will agree that . Even though LIC claims to have taken several initiatives in the IT sector.

Today LIC is not just an Insurance Company. Daily you can hear someone or the other talking of LIC in local trains. LIC is a Cult. LIC is a Movement. and when your policy gets matured LIC will honestly pay your Maturity amount on time. You cannot deny that LIC has become the way of life in India. Imagine 10 lac agents and 1 lac employees serving 16 crore policyholders in India. . in your own offices. on News Channels. If you have purchased an LIC policies then dont forget to pay the premium on time. it will enhance the image of LIC in the mind of the policyholder. The employees are sometimes rude in their behaviour with the Policyholder. at fish markets. etc. at restaurants. If a claim cheques is handed over by a courteous and smiling employee of LIC. LIC is a Religion.LIC is not responsive to the needs of the customer.

That sounded like a big joke. then it will send the wrong message in the minds of the policyholders. 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. Why LIC is trusted brand of India? . LIC has started lacking in effective leadership. Imagine India’s most famous institution sponsoring a Cine Awards function stating that it was done to increase the brand awareness of LIC.As i earlier said. If a company like LIC starts sponsoring irrelevant awards like Zee Cine awards which it had done 2 years ago.

6. this is the only institution where you as a policyholder are virtually chased till such time your claim cheques is handed over to you ! 3. LIC has won `NDTV Profit Leadership Award 2007 under Life Insurance Category'. LIC adjudged No. `Outlook Money Award 2007 as the best Life Insurer'.1 Trusted Service Brand for the 4th successive year by ET Brand Equity Survey. As a Govt of India owned Company. `Web 18 Genius of the Web Award 2007 and many more'. . 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. 5.1. LIC has been adjudged Superbrand India for 2004-06 and Reader's Digest `Trusted Brand' Asia 2007. This is the only corporation that is catering to more than 190 million satisfied policyholders in India and abroad. `CNBC Awaaz Consumer Award 2007 as the best Life Insurance Company'. 4. `Golden Peacock Award for excellence in Corporate Governence 2007'. Any LIC policyholder or the nominee will vouch for the best claims settlement from LIC. Perhaps.

you will find investment on LIC plans one of the most coveted investment options available to you. section 80C benefit and section 10(10D) benefit on the maturity proceeds. 9. as of now. 10.7. only LIC plans enjoy this Govt Guarantee. You can pay your premium anywhere in the country. This is one of the very few institutions that pays ex-gratia interest on pending maturity claims ! 8. 11. LIC has kept on updating its portfolio by bringing in new plans depending on public requirement. Govt of India Guarantee regarding repayment. Add to this package. More than 2050 LIC branches all over India are connected together to serve you. All LIC plans are characterized by low premium.e. LIC ULIPs have become extremely popular due to the returns they offer.. During its long existence. More than 50 of them are most popular and can be customized to meet any of your requirements. Money Pluslatest LIC Unit Linked Plan is a case in point. high life insurance coverage and a vast package of benefits offered by them. All LIC Plans come with Sovereign Guarantee i. . Beneficiary for this Sovereign Guarantee is you and you alone as the policyholder/ would-be policyholder. Infact.

Extra attraction under LIC Bonus is (a) it is calculated every year on the insured amount and not on the premium paid and (b) entire bonus received along with insured amount either by you on maturity of your policy(ies) or by your nominee in your absence during the currency of your policy(ies) is free from income-tax under section 10(10D) of the Income-tax Act. 14. LIC is declaring quite an impressive bonus (profits) on all its with-profits policies every year. .12. this is a very good incentive indeed. In addition. the employer can transfer his gratuity liability to the corporation and fund the same under cash accumulation scheme. Entire contribution to LIC Group Gratuity Scheme is a recognized business expense in the hands of the employer. 13. you can recognize the worth of your most valuable employees whose absence you can ill afford to loose. The most popular among all the companies. For companies making profits. through this scheme. 15. Premium paid under Key-Man Insurance plan is a recognized business expense under section 37(I) of the Income-Tax Act. Through Employer-Employee Insurance scheme.

LIC pension plans that guarantee you life pension are extremely popular. On most of the LIC plans. 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. policy loans offer one of the most attractive investment opportunities. Due to these reasons and lot more.16. None of the policy benefits get affected as a result of borrowal. Infact. LIC should be your obvious choice for all your life insurance requirements. 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. you can borrow to take care of your immediate monetary requirements. 18. You can park your hard earned money safely with the corporation and enjoy pension as long as you are alive. . 19. You can pay your premium 3 years in advance at 5% discount. 17.

BEST IT USER IN INDIA (NASSCOM – 2003). (Source: Asian Investor) LIC . LIC is the largest life insurer of India Asset value as on 31. INSURING LIVES AND ENSURING SMILES from more than 50 Years.1 million agents.3.2004: 3. Largest Institutional Investor in India and Second largest in Asia among insurers. Offers over 45 plans to cover your life at various stages Over 160 million customers and 1.An Institution Builder promoting many financial and insurance institutes like NSE. It has underwritten more than 160 million policies. Insurance Institute of India etc.LIC is India’s most trusted brand.598. SUPER BRAND & MOST TRUSTED SERVICE BRAND OF INDIA.” Finding Product offered to customer .4 mn (INR). Stock Holding Corporation of India. LIC Mutual Fund. 2.048 branch offices (all computerized) of which 2019 are networked ”From all above we can say our money is safe and secure with assured returns. National Insurance Academy.673. NCDEX.

107 Jeevan Surabhi 25 yrs .Plan no.41 Jeevan Kishore .93 Jeevan Surabhi 15 yrs .91 Jeevan Anand Plan no.Plan no.106 Jeevan Surabhi 20 yrs .Plan no.Plan no.75 New Money Back .Plan no.Plan no.Plan No. Children's Policy Komal Jeevan .48 Jeevan Mitra . 159 Children Deferred .Plan no.Plan no.103 Marriage Endowment/Educational Annuity .Plan no.Plan no.14 Limited Payment Endowment with Profits .Plan no.Plan no.89  Money Back Policy Money Back with Profit .Plan no.Plan No. 90 Jeevan Anurag .88 New JanaRaksha Policy .102 Jeevan Chhaya .Plan no.108 .Plan no.168  Endowment Policy Endowment with Profits .133  Group Insurance Policy Janashree Bima Yojana Group Insurance Scheme in lieu of EDLI Group (Term) Insurance Scheme Group Savings Linked Insurance Scheme Group Superannuation Scheme Group Mortgage Redemption Assurance Scheme  Joint Life Policy Jeevan Saathi . 149 Jeevan Mitra Triple Cover .

183  Special Plans Term Assurance .Plan no.58 New Bima Kiran Term Assurance Anmol Jeevan I Plan No. 167 Bima Nivesh 2005 Plan No 171 Money Plus-Plan No 180  Term Policy Convertible Term Assurance .Jeevan Bharati Plan No 160 Jeevan Samriddhi Plan No 154.Plan no. 136 Jeevan Saral Plan No.43 Mortgage Redemption .52 Jeevan Aadhar . 147 Jeevan Akshay II Plan no.148 New Jeevan Suraksha Plan no. 155. 169 Jeevan Akshay V Plan no.Plan no. 163 Jeevan Nidhi Plan no. 156 157 Bima Bachat.114 Market Plus .Plan no.Plan No 181 Jeevan Vishwas Plan No.175  Pension Plans or Annuities New Jeevan Dhara .Plan no.164 Amulya Jeevan-Plan No-177 .Plan no. 165 Jeevan Pramukh Plan No.

Survival Benefits.Service Quality Your Policy Bond And Its Safety Your Policy Number Policy Conditions Alterations In Policy If Your Policy Is Lost Your Contact Address – Keep Us Posted Without Fail Admission Of Age Nomination Assignment When To Pay The Premiums Grace Period For Premium Payment How And Where To Pay The Premiums Policy Status – Where Available Revival Of Lapsed Policies Availing Loans On Policies Surrender Value Maturity. Disability And Death Claims Policies Under Salary Savings Scheme Helpline .

Chapter 6 Conclusion .

STXs must be developed locally or borrowed from units who have already been through the training. civil. is also great. even with limited forces. many pitfalls outlined above can be avoided. In .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. will lead us to a possibly fatal false sense of security. Instinctive behavior and ingrained training must be adjusted to fit new circumstances. The potential to attract international attention. Peacetime Contingency Operations and conduct training as usual. the counterinsurgent must counter all of these strategic elements individually. The probability of becoming involved in a LIC operation is high. LIC is not conventional warfare. military and psychological results. while briefing that the LIC block has been checked. The insurgent’s violent and coercive strategy is applied so as to achieve political. This is critical for the counterinsurgent to understand. Units have demonstrated that with a balanced training focus and proper preparation. Hence.

combined arms. integrated communications. Chapter 8 . This is because the population is the centre of gravity in LIC. initiative. In terms of military principles in counterinsurgency. doctrinal precision. Therefore the counterinsurgent must also focus on the population to be successful.addition. force precision. the target of the insurgent’s violence and coercion is the population. So all policies and plan toally satisfied the customers. independence. effective population based intelligence. a civil affairs approach and high levels of training are critical. joint force. professionalism. precision engagement. restraint.

B IB L I O GR A PH Y B IB L I O GR A PH Y .

com(recummented)  www.com Magazine  Yogkshem –Lic Magazine  Outlook Express  Business today  Finance & Banking  Money Outlook News Paper  Business standard  Times of India  Economic times  Hindustan times .Important websites –  www.google.licindia.

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