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SERVICE MARKETING – REPORT
Presented To: Prof. KINGSHUK BHADURY
Submitted By: MIHIR DHAKRAS – 18 SNEHA MISHRA-31 CHETAN BOTHARA- 11 DEEPIKA GARG-47 RAJESH KUMAR- 42 NEERAJ SHARMA-20 MANPREET SONI-45 PARVEZ ALI- 22 ANKIT BANNETT-04
PGPCS Batch - IV
Hereby declare that the project report entitled “INDIGO AIRLINES” submitted for the SERVICE MARKETING of POST GRADUATE PROGRAM IN CORPORATE STUDIES, is our original work and the project report has not formed the basis for the award of any diploma, degree, associate ship, fellowship or similar other titles. It has not been submitted to any other university or institution for the award of any degree or diploma.
Place: ISCOM, PUNE Date: 04-10-2009
MIHIR DHAKRAS – 18 SNEHA MISHRA-31 CHETAN BOTHARA- 11 DEEPIKA GARG-47 RAJESH KUMAR NEERAJ SHARMA-20 MANPREET SONI-45 PARVEZ ALI- 22 ANKIT BANNETT-04
Without a proper combination of inspection and perspiration, it’s not easy to achieve anything. There is always a sense of gratitude, which we express to others for the help and the needy services they render during the different phases of our lives. We too would like to do it as we really wish to express my gratitude toward all those who have been helpful to me directly or indirectly during the development of this project. We would like to thank my professor Prof. Kingshuk Bhadury who was always there to help and guide us when we needed help. His perceptive criticism kept us working to make this project more full proof. We are thankful to his for his encouraging and valuable support. Working under him was an extremely knowledgeable and enriching experience for us. We are very thankful to him for all the value addition and enhancement done to us.
MIHIR DHAKRAS – 18 SNEHA MISHRA-31 CHETAN BOTHARA- 11 DEEPIKA GARG-47 RAJESH KUMAR- 42
NEERAJ SHARMA-20 MANPREET SONI-45 PARVEZ ALI- 22 ANKIT BANNETT-04
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. The contract is valid for payment of the insured amount during: The date of maturity, or
Specified dates at periodic intervals, or Unfortunate death, if it occurs earlier. Why We Need Insurance:
Life insurance is a contact by which you can protect yourself against specific uncertainties by paying a premium over a period. Since each one of us during our lives are faced with numerous risks-falling health, financial losses, accident and even fatalities.
You need life insurance to be there and protect the people you love, making sure that your family has a means to look after itself after you are gone. It is a thoughtful business concept designed to protect the economic value of a human life for the benefit of those financially dependent on him.
Life insurance makes sure that you have regular income after you retire and helps you maintain your standard of living. It can ensure that your post-retirement years are spent in peace and comfort.
Savings and Investments
Insurance is a means to Save and Invest. Your periodic premiums are like Savings and you are assured of a lump sum amount on maturity. A policy can come in handy at the time of your child’s education or marriage! Besides, it can be used as supplemental retirement income.
Life insurance is one of the best tax saving options today. Your tax can be saved twice on a life insurance policy-once when
HISTORY & BACKGROUND OF LIC
house of the great poet Rabindranath Tagore. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. The United India in Madras. Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko. later with the efforts of eminent people like Babu Muttylal Seal. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870. In 1907. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period.The story of insurance is probably as old as the story of mankind. However. Though the concept of insurance is largely a development of the recent past. National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. The Indian Mercantile. Starting as Indian enterprise with highly patriotic motives. insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. and covered Indian lives at normal rates. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. Life Insurance in its modern form came to India from England in the year 1818. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. Prior to 1912 India had no . particularly after the industrial era – past few centuries – yet its beginnings date back almost 6000 years. the foreign life insurance companies started insuring Indian lives. in Calcutta.
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. providing them adequate financial cover at a reasonable cost. 16 nonIndian companies and 75 provident were operating in India at the time of nationalization. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956. initially the management of the companies was taken over by means of an Ordinance.22. and the Life Insurance Corporation of India was created on 1st September.44 crore. 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 ownership too by means of a comprehensive bill.legislation to regulate insurance business. putting the Indian companies at a disadvantage. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. About 154 Indian insurance companies. and the Provident Fund Act were passed. and later. From 44 companies with total business-in-force as Rs. But the Act discriminated between foreign and Indian companies on many accounts. that life insurance in India was nationalized. 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary.298 crore in 1938. 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. 1956. 1956. In the year 1912. the Life Insurance Companies Act. it rose to 176 companies with total business-in-force as Rs. However. The first two decades of the twentieth century saw lot of growth in insurance business. Nationalization was accomplished in two stages. it was much later on the 19th of January. . The Life Insurance Companies Act.
re-organization of LIC took place and large numbers of new branch offices were opened. leaner and closer to the customer. But with re-organisation happening in the early eighties. LIC’s Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network. It may be seen that from about 200. 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. Hyderabad. Pune and many other cities. and branches were made accounting units. Chennai. apart from its corporate office in the year 1956.00 crore Sum Assured on new policies.00 crores of New Business in 1957 the corporation crossed 1000. The satellite offices are smaller.LIC had 5 zonal offices. 33 divisional offices and 212 branch offices.00 crores only in the year 1969-70. Info Centres have been commissioned at Mumbai. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. Bangalore. As a result of re-organisation servicing functions were transferred to the branches. 100 divisional offices. 7 zonal offices and the Corporate office. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past . and it took another 10 years for LIC to cross 2000. With a vision of providing easy access to its policyholders. by 1985-86 LIC had already crossed 7000. Today LIC functions with 2048 fully computerized branch offices. New Delhi. Kolkata. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. Apart from on-line Kiosks and IVRS. It worked wonders with the performance of the corporation. LIC has launched its SATELLITE SAMPARK offices. Ahmedabad.00 crore mark of new business.
LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. • Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders. 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. without losing sight of the interest of the community as a whole. LIC has issued over one crore policies during the current year.955 new policies by 15th Oct. • Maximize mobilization of people's savings by making insurance-linked savings adequately attractive. the primary obligation to its policyholders. From then to now. the funds to be deployed to the best advantage of the investors as well as the community as a whole. 2005.67% over the corresponding period of the previous year. in the investment of funds. • Bear in mind. It has crossed the milestone of issuing 1. .01. OBJECTIVE OF LIC • Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.32. keeping in view national priorities and obligations of attractive return.records. whose money it holds in trust.
" Vision "A trans-nationally competitive financial conglomerate of significance to societies and Pride of India. • Promote amongst all agents and employees of the Corporation a sense of participation.• Act as trustees of the insured public in their individual and collective capacities. and by rendering resources for economic development. MISSON & 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. • Meet the various life insurance needs of the community that would arise in the changing social and economic environment. • Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy." . pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.
LIC Operate All Over India .
SERVICE LINES OF THE COMPNAY .
INSURANCE PLANS As individuals it is inherent to differ. . Each individuals insurance needs and requirements are different from that of the others. These policies are most suited for senior citizens and those planning a secure future. so that you never give up on the best things in life. LICs Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement. These plans help you see your savings yield rich benefits and help you save tax even if you don't have consistent income. PENSION PLANS Pension Plans are Individual Plans that gaze into your future and foresee financial stability during your old age. UNIT PLANS Unit plans are investment plans for those who realise the worth of hard-earned money.
societies etc. and allows you to enjoy group benefits at really low costs. investment and a lifetime of happiness! GROUP SCHEME Group Insurance Scheme is life insurance protection to groups of people. This scheme is ideal for employers. associations. WITHDRAWN PLAN .SPECIAL PLANS LIC’s Special Plans are not plans but opportunities that knock on your door once in a lifetime. These plans are a perfect blend of insurance.
Ashok Chawla (Finance Secretary. Chaturvedi (Additional Secretary.K.K.LIC) Shri. Ministry of Finance.LIC) Shri. Department of Financial Services. Export Import Bank of India) Dr. of India. Sooranad Rajashekhran Shri. Yogesh Lohiya (Chairman cum Managing Director. D. GIC of India) Shri. A. G. of India) Shri. Govt. Monis R. Venkat Subramanian (Chairman & Managing Director. VIJAYAN (Chairman) Shri. Kidwai . Mehrotra (Managing Director . S.C.KEY EXECUTIVES Members On The Board Of The Corporation Shri T. Dasgupta (Managing Director . T. Thomas Mathew T. Ministry of Finance.C. Govt. (Managing Director .LIC) Shri.) Shri.
MAJOR PLAYERS OF THE INDUSTRY Life Insurance Companies .
2001 2000-01 7. Ltd.2001 2001-02 11. 111 29. UK 105 24.01. Om Kotak Life Insurance Co. Old Mutual. Ltd. Ltd.2001 2000-01 6.2001 2001-02 5. Allianz Bajaj Life Insurance Co. SBI Life Insurance Co.10. Metlife International Holdings Ltd.2002 2001-02 . USA --- 117 06. 1. Ltd. Insurers Foreign Partners Regn.2001 2001-02 9. Canada 107 10.V.08. Max New York Life Insurance Co. No. Birla Sun Life Insurance Co. Metlife India Insurance Co. Netherlands 110 12. Reliance Life Insurance Co.11.08.01.2001 2001-02 10. Ltd..03.05) 121 03.. American International Assurance Co.2000 2000-01 3.2001 2001-02 8. Standard Life Assurance. 114 02. USA 101 2.9. UK New York Life.11. Ltd. ING Vysya Life Insurance Co. No.01. Tata-AIG Life Insurance Co.Sl. ICICI-Prudential Life Insurance Co. USA BNP Paribas Assurance SA.2000 2000-01 4.08. Ltd. Ltd. Ltd. Prudential .02. South Africa Sun Life. Ltd. Date of Registration 23.. (Earlier AMP Sanmar Life Insurance Company from 3.1. France ING Insurance International B.2000 Year of Operation 2000-01 HDFC Standard Life Insurance Co. 104 15.02 to 29. 109 31. Ltd. Germany 116 03. Allianz.
Netherlands 135 19. IDBI Fortis Life Insurance Company Ltd. AVIVA Aviva International Holdings Ltd.2006 2006-07 16. South Africa 128 17.. Netherlands 138 27.09.2008 2008-09 19. Shriram Life Insurance Co.07. Aegon Religare Life Insurance Company Ltd. Ltd. UK 122 14. Fortis.11. Religare. No.2007 2007-08 18. Sanlam.2008 2008-09 .05. Bharti AXA Life Insurance Co.Sl. (SMNPL). Date of Registration Year of Operation 12. Sahara Life Insurance Co. Canara HSBC OBC Life Insurance Company Ltd.05. DLF Pramerica Life Insurance Co. Future Generali India Life Insurance Company Ltd. UK 136 08. Insurers Foreign Partners Regn. HSBC.2004 2004-05 14.2008 2008-09 20. Italy 133 04.2007 2007-08 17. Ltd. Ltd.. No. Generali. USA 140 27. France 130 14. Sain Marketing Network Pvt. Pantaloon Retail Ltd.2005 2005-06 15.06. Prudential of America.12. Ltd.2002 2002-03 13.06. --- 127 06. AXA Holdings.02. Ltd.
Date of Registration Year of Operation Life Insurance Corporation of India 512 .Sl. 21. Insurers Foreign Partners Regn. No. No.
NUMBER OF LIFE INSURANCE OFFICES-COMPANY WISE (As on 31st March) Insurer Aviva Bajaj Allianz 2008 213 1007 2007 140 877 2006 110 567 2005 50 153 2004 22 49 2003 12 33 2002 3 17 2001 1 .
Bharti Axa Birla Sunlife Future Generali HDFC Std ICICI Pru IDBI Fortis ING Vysya Kotak Mahindra Max NewYork MetLife Reliance Life Sahara SBI Life Shriram Tata AIG Private Total LIC Industry Total 77 538 9 569 1958 2 265 151 194 94 745 33 200 53 283 6391 2522 8913 16 148 1 97 53 41 29 19 2 448 583 150 175 90 109 26 69 18 29 4 14 6 183 75 118 53 159 33 138 12 89 3072 2301 5373 68 46 84 43 157 18 46 11 72 1645 2220 3865 38 43 64 35 80 18 31 40 804 2197 3001 26 39 33 16 48 2 19 26 416 2196 2612 16 28 23 8 35 10 13 254 2191 2445 4 9 15 3 17 5 6 116 2190 2306 1 3 13 2186 2199 .
MAJOR COMPETITIORS BAJAJ ALLIANZ .
Our business philosophy is to ensure excellent insurance and investment solutions by offering customised products. of policies sold 21.217 37. one of the largest Insurance Company and Bajaj Finserv.81. Rs.3 cr. Rs. 63. Rs. 00.Bajaj Allianz Life Insurance is a union between Allianz SE. 2.302 cr. supported by the best technology.15.189 7. 7 cr.685 20. Allianz SE is a leading insurance conglomerate globally and one of the largest asset managers in the world. 55.742 New Business in FY Rs.86.717 cr. 180 cr. Rs. Rs. Accelerated Growth Fiscal Year 2001-2002(6 mths) 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 No.44.443 2.37 1.965 1. 6. Allianz SE has over 115 years of financial experience and is present in over 70 countries around the world. customer delight is our guiding principle.88. .000 Crores). 4.674 cr.79. Rs. managing assets worth over a Trillion (Over INR. At Bajaj Allianz Life Insurance. 857 cr.
000 advisors. ICICI Prudential is the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings. ICICI Prudential has been voted as India's Most Trusted Private Life Insurer. . We began our operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA). 47. our nation-wide team comprises of 2074 branches (inclusive of 1. we continue to tirelessly uphold our commitment to deliver world-class financial solutions to customers all over India. Total capital infusion stands at Rs.a leading international financial services group headquartered in the United Kingdom. over 225. product range and customer base. For three years in a row. by The Economic Times .ICICI PRUDENTIAL ICICI Prudential Life Insurance Company is a joint venture between ICICI Bank one of India's foremost financial services companies-and Prudential plc . As we grow our distribution. and 7 bancassurance partners.116 micro-offices).80 billion.AC Nielsen ORG Marg survey of 'Most Trusted Brands'. with ICICI Bank holding a stake of 74% and Prudential plc holding 26%. Today.
SWOT ANALYSIS OF THE COMPANY .
other agencies and helps in long term viability of the project. It has a large product portfolio and claim settlement is easier to get. consultant. It is the oldest and most well experienced player having a Pan India presence. 4. Largest insurance Company in the world in Customer Base (23 crore customers) . 5. 2. It is having a huge consumer base and is evolved as one of the most powerful brands of the country. 6. 3. LIC has a strong and very well developed distribution network.The SWOT analysis involves an in depth study of the strength and weakness of the provided organization and it also provides information to the promoter. It has the advantage of government guarantee is accompanied with it. Strength : 1.
LIC is second largest PC user in the country. & Service Tax Rs. Computerized and networked 2048 branch offices and 159 satellite offices throughout the country. 14. No. 10. 11.1 Million agents) 8. For Financial Year 2007-08. .1 insurance Company in the world in terms of claims paid. 15 Cr. 14 Cr.75 Cr. LIC settled 139 lakhs claims during the year 2007-2008.Enabling Policy servicing & payments through all branchs in the country.LAN.1 insurer in the world in Volume & Sold around 3. No. 9. 2nd Biggest Real Estate Owner next to Indian Railways. Prompt settlement of claims (97% maturity claim settled on or before due date) 16. Has Highest insurance Professionals ( Club Member agents ) 12.7.IVRS & EDMS 3.07%) Advanced Technology-For better Customer Service 1.2627.Policies in 2007-2008. Use of High Tech-WAN.1292.1 insurance company in the world in terms of agency (about 1. LIC has paid advance Tax Rs. LIC Settles 2. 4. 15. 2. 13.21 claims per second. One of the Lowest outstanding Claim Ratio in the world ( Maturity+S B Claim- 0. LIC is No. EDMS to make LIC a paperless office.LIC is one of the Highest income tax playing Organization.Only 4 countries in the world have more population that LIC`s policy holders.
5. collecting bank (Axis Bank). through SMS. ATM's through internet. Info centre set up in 12 cities for customers to interact easily. insurance institute of India etc. USA&Canada. Premium Payment Facility extended through networked 2048 branches. online portals. In year 2007-2008. LIC Mutual Fund. 1251 OR 020-25514248. 8. Facility can be availed on following phone Nos. Now LIC Premium can also be paid through. 8. Fiji and London and has joint • venture operating in Sri lanka. AP online. Nepal. • LIC has foreign operations in Mauritius. 45 interactive Voice Response System (IVRS) centers all over the country to provide information on policy servicing. 6. 9. • LIC is known as "Pension Provider" of the country. Social Strength • LIC . Policy Holder's Portal allow on line access to policy status and other details.an institution builder promoting many financial and insurance institutes like NSE.54 lac policies sold through "Jeevan Madhur"Plan. New offices will be hortly oprned in Australia. • First to create waves in micro insurance sector by insuring people below the poverty line. Bahrain & Saudi Arabia. National insurance Academy. "Suvidha info Serve KIOSKS" all over India. Dial-1251 for details. Facility is available 24 7. 7. NCDEX. through selected agents. Stock Holding Corporation of India. ECS. . • 1st Pension company in India is floated by LIC as "LIC Pension Fund Ltd" on 21st Nov 2007.
• Expending Distribution Channel through Bancassurances.56.13 crore citizens through "AAM ADMI BIMA YOJANA" & " JANASHREE BIMA YOJANA".Central Zonal Office opened at patina to caterto the needs of states of Bihar. Jharkhand and Orissa. • LIC has covered lick Risk of 1.691crores • In socially oriented sector like water. • "Golden Jubilee Foundations" established for undertaking charitable activities like education.was splited in 2 divisions. viz Pune Division (i) and Pune Division (ii).A.R.5. • Highest Number of Corporate Clients in Group insurance Scheme. relief of poverty etc.• Widest range of plans (about 48) for every need of the customer of 0 to 79 years of age.32. Pune D.630 crores. • "Jeevan Saral" one of the product of LIC got "Best innovation product " award from I.O. • Very Unique Salary saving Portfolio. . 5 new Divisional offices were also opened in 2007-08. • New East . drainage & housing etc. People's Money for People's Welfare • LIC invested more than 11.635 crores during 2007-08 & total investment in this sector is Rs.D. LIC has invested Rs. in infrastructure sector is Rs. • Biggest Portfolio of Group insurance schemes available.321 crores. health. Broker ship & Chief Life insurarance Advisor (CLIA). Corporate Agencies.
After sales customer grievance redressal mechanism is inefficient. Agents not taking into account the needs of people and promote policies having .655 crores.000 Crs. • Largest institutional investor in Share Market.89. • Total Assets of the corporation as on 31.74.76. Financial Strengths • LIC's investment income in 2007-08 was Rs.559. • Total investment in Nation Building Activities is 5.000 Crs. During theyear 2007 LIC earned the profit Rs. 6.07 were Rs. On an average Rs.10. 1. • Largest Financial institutional investor both Equity market & Term House. • Different incentive schemes for villages.40.514.28 Crs. Bima School and Bima Banks.• Total investment in Social Sector Rs.100 crore invested every day. Weakness : Its employees and other staff are lethargic and least motivated to render prompt and sincerecustomer service.78 Crs.3. from the Sale of Equity. Schools and Banks under Bima Gram.000 Crs. Out of Total income of Rs.76.
The top management or bosses are mediocre and there is large scale corruption in main office. The development officers and agents who are the foundation pillars of LIC are not provided with extra funds and powers to promote its products aggressively. Pension markets. health insurance and large real estate portfolio. People becoming more aware and demanding so there is scope for a whole lot of innovativeproducts. .high commissions only. Very slow decision making process and internal problems between top management and lower cadre staff. Opportunity : Emergence of a huge middle income consumer market in the country.
No doubt lots of marketing and promotional efforts have to be done for trapping the uncovered portion of the huge market. The activity such as development in the automobile industry. So this is also one of the opportunities for the life insurance sector. Technological. Almost 300 million people in the country can afford to buy life insurance but of this only 20 % have an insurance cover. According to the institute of charted financial analyst of India. India has a population 1044. Easy accesses to development in the more advance market provide further opportunity to upgrade their working. Thus there lies a big opportunity for the life insurance industry.7 million have a life insurance policy. So. that insurance companies working efficiently and fast service. The growth rate expected this year 7-7.5%. so they prefer protection against the risk. This is the opportunity for the life insurance sector.Today’s human life becomes full uncertain. Uncovered market: The Indian insurance market is the one of the least markets in the world. Therefore they prefer life insurance. India’s insurance has long way to catch up with the rest of the world. development in the shipping industry. The growth in the GDP shows the opportunity for this industry. India is the 23rd largest insurance market in the world. . financial or specific area based avenues of absorbing improved system are also now more easily available. Increased economic activities: increase in the economic activity has become the opportunity for the life insurance sector.15 million out of which only 77.
Thus through a calamity it has become a considerably big opportunity for the industry. it has become an .5%in UK. India has traditionally been a highly savings oriented country. It has become an opportunity for the life insurance industry. Needless to say.2% in US . To sell insurance products through electronic Medias. Thus. Thus. It is said that one Australia is added in our country every year. it is possible to raise life insurance premium as a percentage of GDP from its existing level.7%) is very high. Growing population: the growth in the population (approximately 1. it has become an opportunity for the life insurance industry. To enter into rural market where customer awareness about insurance is low by effective and efficient marketing strategies. if the insurance market is properly tapped.6.4% of the global insurance market which is very low.India accounts for just 0. the ratio’s of premium to GDP for India stands at only 3% against 5. and cyclone people have become conscious about benefits and need of insurance. Natural calamities: natural calamities taking place now days have created a concern for life insurance among the public. Because of natural calamities like earthquake. flood. The lack of comprehensive social security system combined with a willingness to save means that Indian people demand for pension products will be large. Thus potential customers for the life insurance industry.
Exist the option of joint venture& alliance etc. Thus technology has thrown lots of opportunity for the company. Due to liberalized policy of government the country is benefited in earning foreign inflows: the domestic company can also collaborate with foreign country and can create synergy. Liberalized government policy toward insurance sector: the government has liberalized the government policy in the life insurance sector. With the help of technology it has become easy for the companies to reach the customer quickly.opportunity for the life insurance industry. . This creates threat among rival firms itself. easily. for companies to create Synergy. new products and flexibility. These new entrants succeeded in eating share of the existing entities. Also the companies can cut down the cost of operation up to considerable level. To use Internet and e-commerce technologies to dramatically cut the costs and/or to pursue new sales-growth opportunities. by providing better service. Thus there is great opportunity for those who can trap it. Now a day role of government has changed. They are targeting the bigger corporate the other clients in the well established metropolitan center. value as well as competitive capabilities for the firms. efficiently and in a better way. Threats: Private entrants are naturally targeting the profitable and more lucrative segments.
As at present the awareness level is not much. which affects the life insurance sector.F and bank saving create threat to insurance sector. All other saving is obviously the threat for life insurance sector. One very serious danger that the government on units is likely to face is that even if at some point of time. they may not be fully free from government interference.consumers are more and more confused because the market players are offering large number of product range. They could face a peculiar problem that although paper and in terms of legal definition they would . Interest rate of P. Fluctuation in the bank rate makes big difference for the life insurance industry. and could be on the rise for some time to come. Fraud in insurance sector: the major problem fraud. It has become threats for the life insurance industry. Decreased in bank rate: the decreased bank rate is the biggest threat for the life insurance sector. Retaining qualified and competent executives will be considerable challenges for existing companies. The flight of talent to new entrants is already in evidence. it is only because the education level is only 62 %( in which only 10% are well educated). Increasing intensity of competition among industry rivals-may cause squeeze (fall) on profit margins. the government does decide to disinvest a portion of its equity. Consumer’s education.
which until recently had no such opportunity and incentives. equipped with state of arts equipment and innovative procedure would have an in-built edge over the erstwhile public sector units. This could be genuine threats since they would be competing with units which are free from such artificial and unnecessary restrictions.not be public sector units. The resultant inadequate investment in infrastructure could lead to their lagging behind in the race. Due to possible negative impact on employment. there were no serious efforts at updating technology and equipment. their working could be no different from what it was before their ownership pattern change. . The new units. In effects.
INSURANCE PLANS As individuals it is inherent to differ.MARKET SEGMENT OF LIC The policies of LIC covers the age group 0-70 can avail the services of LIC. It means LIC has very vast market segment. LICs Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement. . youngster. working. old people. Each individuals insurance needs and requirements are different from that of the others. children. married.
Jeevan Anurag CDA Endowment Vesting At 21 CDA Endowment Vesting At 18 Jeevan Kishore Child Career Plan Child Fortune Plus Komal Jeevan Marriage Endowment Or Educational Annuity Plan Jeevan Chhaya Child Future Plan Jeevan Aadhar Jeevan Vishwas The Endowment Assurance Policy The Endowment Assurance Policy-Limited Payment Jeevan Mitra(Double Cover Endowment Plan) Jeevan Mitra(Triple Cover Endowment Plan) Jeevan Anand New Janaraksha Plan Jeevan Amrit Jeevan Shree-I Jeevan Pramukh The Money Back Policy-20 Years The Money Back Policy-25 Years Jeevan Surabhi-15 Years Jeevan Surabhi-20 Years Jeevan Surabhi-25 Years Bima Bachat .
Single Premium Jeevan Anand Jeevan Tarang Two Year Temporary Assurance Policy The Convertible Term Assurance Policy Anmol Jeevan-I Amulya Jeevan-I Jeevan Saathi Plus Jeevan Saathi PENSION PLANS Pension Plans are Individual Plans that gaze into your future and foresee financial stability during your old age. These policies are most suited for senior citizens and those planning a secure future. so that you never give up on the best things in life. .I The Whole Life Policy The Whole Life Policy.Jeevan Bharati .Limited Payment The Whole Life Policy.
Jeevan Nidhi Jeevan Akshay-VI New Jeevan Dhara-I New Jeevan Suraksha-I .
USP OF THE COMPANY .
FUTURE OF THE COMPANY .
Total premium deposits in LIC is much higher than the private insurance companies.FINDINGS AND CONCLUSIONS FINDINGS & CONCLUSIONS: IC is the giant of the insurance sector. Private insurers are in expansion mode and are increasing their size but are still much behind LIC. Total premium of LIC in FY 07-08 was 149789 crores which three times more than that of private insurance . The overall size of LIC is much more than L that of all private insurance companies.
Size of balance sheet of private insurance companies are lagging much behind LIC. It is giant in insurance sector having huge network and customer base. Hence we see that LIC is leading when it comes to size. Last year total income from investments of LIC was 48244. By this we can imagine how big the LIC is. we find that there is a huge gap between them. But offices of private insurance companies are mostly in urban areas and still it is LIC which covers most of the area. We see that due to excellent service quality and attractive offers private insurance companies have started getting a number of customers. Number of branches of private insurance companies is increasing as the new players are entering in this market. Hence it is obvious that LIC is having large number of policyholders.14 crores which was nearly equal to the total income of the all private insurance companies. Though LIC is also increasing its customer base but private insurance companies are . Also the established players are in expansion phase and hence are expanding there business. They are growing rapidly. Balance sheet of LIC is seven times bigger than that of private insurance companies. There are many private insurance companies and hence there total number of branches has gone past LIC in the last financial year. Income of LIC is much greater than private insurance companies. No doubt that LIC is a well established player in the field of insurance and many private companies have just started their business.companies. If we see the total number of policies issued by LIC and private insurance companies.
There are many new entrants in this sector.64 % in number of new policies in the year 2006-07. They are undoubted champions in insurance when it . Private insurance companies are expanding their business and will certainly going to give a tough competition to LIC in the coming days.moving at a fast pace. LIC is much ahead of private insurance companies in this field. Overall we can see that private insurance companies are giving a tough competition to the LIC and will certainly create a good business for themselves in the coming days. Last year also their growth rate was 67. being the oldest player in the existing insurance market. This is the main reason why private insurance companies lag behind LIC in case of business per branch.4 %. We see that private insurance companies are penetrating in the customer base of LIC. There is a big difference between them.9 % which was 87. Same is the case when it comes to income per branch. LIC is certainly having a large customer base. Though the income of private insurance companies is negligible when compared with LIC but then also the pace with which they are increasing their income is tremendous. 64 LIC.3% five years earlier. There are many private insurance companies who have reported loss in this and previous years. Private insurance companies are not having that much number of customer base but they are increasing it rapidly. They have registered a decent growth of 104. has the biggest market share of 73.
This is a matter from where customer shift starts.comes to profit earning. they are ahead of private insurance companies though not by very large margin. New business is increasingly going towards private insurance companies but still the customer base of LIC is very strong. Customer base of LIC is very strong and still business per branch. LIC has not shown their good concern when the matter of grievance handling comes. . Private companies show due concern in grievance management and brings innovative schemes to attract the customers. We have seen the rapid increase in customer base of private insurance companies which can be very much affected by this factor. In issuing new policies per branch also. Private insurance companies are far ahead in this matter. LIC has just resolved 25% cases in the last five years while private insurance companies have resolved nearly 70% cases. Right now they are giving good competition to LIC and very soon they will give very tough competition to Life Corporation of India. profit per branch or premium per branch. they are leading much ahead of private insurance companies. Overall we have seen that still LIC is very famous but private insurance companies are growing at exceptionally fast pace.
GLOSSERY Accident An event or occurrence causing damage/injury to an entity. and provides service to the policyholder for the insurer. Accident Benefit Provides for payment of an additional benefit equal to the sum sum assured in instalments on permanent total disability and waiver of subsequent premiums payable under the policy. Agent An insurance company representative licensed by the state who solicits. negotiates or effects contracts of insurance. Annuity Plans These plans provide for a "pension" ( or a mix of a lumpsum amount and a pension ) to . and is unforeseen and unintended. Age Limits Stipulated minimum and maximum ages below and above which the company will not accept applications or may not renew policies.
usually filled in by the agent and medical examiner (if applicable) on the basis of information received from the applicant. corporation. An assignment can be made by an endorsement on the policy document or as a seperate deed. trust.) named in the policy as the recipient of insurance proceeds upon the death of the insured.be paid to the policy holder or his spouse. Cancelable A contract of health insurance that may be cancelled during the policy term by the . It is issued to indemnify a business for the loss of services of a key employee or a partner who becomes disabled. In the event of death of both of them during the policy period. a lumpsum amount is provided for the next of kin. It is signed by the applicant and is part of the insurance policy if it is issued. Assignment can be of two types Conditional absolute Beneficiary The person(s) or entity(ies) (e. Application Form Supplied by the insurance company. A method by which the policy holder can person on his interest to another person. Business Insurance A policy which primarily provides coverage of benefits to a business as contrasted to an individual. etc.g. Assignment Assignment means legal transference.
such period is days of grace. Coinsurance 1) A provision under which an insured who carries less than the stipulated percentage of insurance to value. i. Depreciation A decrease in the value of property over a period of time due to wear and tear or obsolescence. Deferment Period Period between the date of subscription to an insurance-cum-pension policy and the time at which the first instalment of pension is received.e. Depreciation is used to determine the actual cash value of property at time of loss. 80 per cent by the insurer and 20 per cent by the insured. a period is 15-30 days is allowed as grace to make payment of premium. will receive a loss payment that is limited to the same ratio which the amount of insurance bears to the amount required. Double/Triple Cover Plans These offer to the beneficiaries double/triple the sum assured on death of life assured . it provides for very low insurance premiums with maximum risk cover while the life assured is just beginning his working career. Such policies generally prescribe a minimum and maximum limit on the deferment period.. 2) a policy provision frequently found in medical insurance. Days Of Grace Policy holders are expected to apy premium on due dates. Coverage The scope of protection provided under a contract of insurance. and the possibiliy of converting the policy to an "endowment" policy after five years of commencement.insurer or insured. by which the insured person and the insurer share the covered losses under a policy in a specified ratio. any of several risks covered by a policy. Convertible Whole Life Policy A mix of "whole life policy" and "endowment policy".
generally whole life insurance on the principal breadwinner and small amounts of term insurance on the other spouse and children. the basic sum assured is paid to the assured.during the term of the policy. Exclusions Specific conditions or circumstances for which the policy will not provide benefits. The insured amount is payable either at the end of specified number of years or upon the death of the insured person. damage to a musician's hands or the multiple perils of a convention. for which coverage is unavailable in the normal market. Excess And Surplus Insurance 1) Insurance to cover losses above a certain amount. A life insurance policy providing insurance on all or several family members in one contract. with losses below that amount usually covered by a regular policy. Facultative Reinsurance A type of reinsurance in which the reinsurer can accept or reject any risk presented by an insurance company seeking reinsurance. e. whichever is earlier. (2) Insurance to cover an unusual or one-time risk. Endowment Policy The assured has to pay an annual premium which is determined on the basis of the assured's age at entry and the term of the policy. On survival to the date of maturity. Family Insurance.. These are low-premium plans. Embezzlement Fraudulent use or taking of another's property or money which has been entrusted to one's care. most useful for situations such as housing.g. including those born after .
The individual members of the group hold certificates as evidence of their insurance Guaranteed Policies These are policies where the payment stays fixed. plus resultant damage caused by smoke and water. And the entire GIVE is payable on death after deferment period. It is typically issued to an employer for the benefit of employees. available at low cost under a programme developed by the Central government. Gross Insurance Value Element (GIVE) The amount payable on the deferred date under Jeevan Dhara Life of Life Insurance Corporation of India.the policy is issued Fiduciary A person who holds something in trust for another. Flood insurance Coverage against loss resulting from the flood peril. An annutiy of 1% of the GIVE is payable per month after the deferment period. This amount is referred to as GIS. for example a professional membership group. Franchise Insurance A form of insurance in which individual policies are issued to the employees of a common employer or the members of an association under an arrangement by which the employer or association agrees to collect the premium and remit them to the insurer. The monthly pension that is payable one month after payment of first premium is calculated on the basis of the age at entry. or to members of an association. Guaranteed Insurance Sum (GIS) A lump sum purchase price is given to purchase future pensions under the Jeevan Akshay Plan of Life Insurance Corporation of India. Fire Insurance Coverage for losses caused by fire and lightning. Group Life Insurance Life insurance usually without medical examination. . on a group of people under a master policy.
In this case. Insured The person whose life is covered by a policy of insurance. whichever is earlier. the sum assured along with all vested bonuses will be payable on maturity date. Premiums during this plan cease on the first death or the expiry of the selected term. the sum assured will be payable on first death and then again on the second death (along with all vested bonuses) if both deaths occur during the term of the policy. Joint Life Endowment Assurance Plans The sum assured ( plus any accrued bonuses) under this type of policy is payable on the end of the endowment term or on the first death of the two lives assured. susceptibility to injury and life expectancy. Insurability All conditions pertaining to individuals that affect their health. If one or both lives survive to the maturity date. a variation is available for couples only. Typically (though not a necessity) taken out by a couple. Another variation provides for annuity to both/surviving spouse. whichever is earlier. . an individual's risk profile. if any untouched event occurs. Insurable Interest A condition in which the person applying for insurance and the person who is to receive the policy benefit will suffer an emotional or financial loss. Without insurable interest. an insurance contract is invalid.Indemnity Legal principle that specifies an insured should not collect more than the actual cash value of a loss but should be restored to approximately the same financial position as existed before the loss. or a lumpsum amount to the legal heirs. Insurance Social device for minimizing risk of uncertainty regarding loss by spreading the risk over a large enough number of similar exposures to predict the individual chance of loss.
Lapsed Policy A policy which has terminated and is no longer in force due to non-payment of the premium due Limited Payment Life Policy Premiums need to be paid only for a certain number of years or until death if it occurs within this period. Broadly speaking. It is LICs effort to further share its surplus after valuation with the policy holders. Proceeds of the policy are granted to the beneficiaries whenever death of the policy holder occurs. as LIC is a non-profit organization. Life Assured The person whose life is insured by an individual life policy is called life assured. Maturity The date upon which the face amount of a life insurance policy . Loyalty Additions The loyalty addition is given upon the maturity of the policy. if not previously invoked due to the contingency covered (death).Keyman Insurance Policy A life insurance policy taken by a person on the life of another person who is or was his employee/connected to his business in any manner whatsoever. Again. loyalty addition is the difference between the performance. It's a small percentage of the sum assured. this policy can also be of the "with profits " or "without profits" type. of the insurance company and the guaranteed additions. Maturity Claim . and not before. is paid to the policyholder.
circulating or causing to be issued or circulated an estimate.These type of policies are very popular. Moral hazard is the risk factors that affects the decesion of the insurance company to accept the risk. issuing. a circular or a statement of any kind that does not represent the correct policy terms. an illustration. and no further premiums are required to be paid. The person so authorised is called Nominee. since they can be tailored to get large amounts at specific periods as per the needs of the policy holder. in money back policies. dividends or share of surplus or the name or title for any policy or class of policies that does not in fact reflect its true nature. the policy holder gets periodic "survivance payments" during the term of the policy and a lumpsum amount on surviving its term. personal habits standard of living and income of insured peson. without any deductions for the amounts paid till date.The Payment to the policy holder at the end of the stipulated term of the policy is called maturity claim. In the event of death during the term of the policy. state of health. Moral Hazard Risk depends on the need for insurance. the beneficiary gets the full sum assured. Misrepresentation Act of making. Nomination An act by which the policy holders authorises another person to receive the policy moneys. Non-cancelable policies Such policies stay in effect regardless of whatever that might happen and as long as the premium is paid from time to time . Money Back Policy Unlike endowment plans.
family or personal history of disease. and will always require payment of the total amount of past due premium. and the protection against catastrophic loss. death is viewed as a contingency. The spreading of risk across a broad base of the population. occupation. or one of the regular periodic payments. that a policy holder makes to an insurer in exchange for the insurer's obligation to pay benefits upon the occurrence of the contractually-specified contingency (e. deny reinstatement). The company may require evidence of insurability (and. That is. Sub Standard Risk Person who is considered an under-average or impaired insurance risk because of physical condition. The process of evaluating and selecting risk is known as underwriting. Reinstatement The restoration of a lapsed policy to in-force status. in the event of th life assured surviving to the end of the policy term. For risk assumption purposes. adjusted for statistical probability. residence in .g. death). Reinstatement can only occur after the expiration of the grace period. although death is certain. its timing is unknown. Risk The obligation assumed by the insurer when it issues a policy. Salary Saving Scheme This scheme provides for payment of premiums by money deduction from the salary of the employees by one employer. The total sum assured is paid to the beneficiaries in the event death occurs during the policy term.. Premium Back Term Insurance Plans These provide for refund of all the premiums paid. is the entire purpose of insurance.Premium The payment. if health status has changed.
while a "without profits" policy does not have this privilege ) With-Profit policy Policies entitled to bonus.unhealthy climate or dangerous habits. This can be with profits or without profits ( A "with profit" policy is eligible for various bonuses declared by LIC every year. Vesting Age The age at which the receipt of pension starts in an insurance-cum-pension plan. Whole Life Policy Premiums are paid throughout the life time of life assured . Without-Profit policy These policies are not entitled to particiapte in bonuses. which is paid at the time of claim-death or maturity one with-profit policies. Survival Benefit The payment of sum assured to the incured person which has become due by instalments under a money back policy. . Surrender Value The value payable to the policy holder in the event of his deciding to terminate the policy before the maturity of the policy.
businessworld.bajajallianz.org D Different statistics from http://www.com http://www.licindia. Management of financial institutions by R.co.com Different Survey on Insurance sector conducted by IIRC.in www.com/ www.economictimes.in/ www.bharti-axalife. Srivastava http://www.co.com http://www.com/ www.reliancelife.businesstoday.birlasunlife.com/ http://www.hdfcinsurance.in/ www.co.rbi.REFRENCES ata on Indian Insurance from http://www.com www.sbilife.com/ www.finance. Profile of Indian Insurance Companies by IRDA.M.indiamart.tata-aig-life.metlife.irdaindia.org.in Journals published by Insurance Regulatory & Development Authority. www.com .in/ www.co.
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