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Review of Literature
Someone has greatly said that practical knowledge is far better than classroom teaching. During this project, I fully realized this and come to know about the present real world of Insurance sector. It includes all the activities involved in providing insurance products to the final customers. I am pleased to know about the consumers¶ wants and competitors activities in the real world of Insurance. The subject of my study is to analyze the present insurance sector and products offered by LIC by applying various tools like direct interaction with customers. The report contains first of all brief introduction about the company. Then it contains the various insurance plans/products offered by it to the general public .I also put forward recommendations of the consumers and conclusions that will help LIC to provide consumer satisfactory services in the insurance sector.

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Introduction

Insurance is a social device where uncertain risks of individuals may be combined in a group and thus made more certain ± small periodic contributions by the individuals provide a found out of which those who suffer losses may be reimbursed. In addition tobeing a means to protect oneself, the insurance Industry is an efficient conduit for the saving of people to be channeled towards economic growth. In India, the Insurance Industry is more than 150 years old. Today, it is monopolized by two PSUs in their respective fields of life and General Insurance. However, with the successful passage IRDA Bill through both houses of parliament in December 1999 the sector has been opened up to private players. This will provided much. Needed impetus to the Industry and will improve the quality of service and products and will also increase employment opportunities. There are still some issues that need to be sorted out, particularly with regard to the status of intermediaries as envisaged by the Insurance Regulatory Authority.

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Research Objective
The report gives the brief background of the sector and proceeds to highlight the short comings of the existing setup and players. The benefits of liberalized sector are enumerated. The report also tries to identify the market potential for insurance products and the strategy that we employed to exploit the same. The stress is also given on knowing the awareness level of general public.

y First and foremost objective is to find out the reasons for using of Different Products of LIC. y To find out the services that other insurance companies are giving to their customers. y To build the relationship with the customers and to follow up them, make sure that they are satisfied with the product. y To maintain good relationships with the corporate employees. y To get more references from the customers and generate new leads by following a chain process. y To place LIC Products ahead of the competitors. y To find out the customer awareness on booming Advance Product market and to find out the using patterns of the people.

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Research Methodology

Basically there are 3 types of approaches used during the any research: 1. Exploratory 2. Descriptive 3. Experimental During this research Descriptive and Exploratory approach is taken into consideration because of the availability of relevant information to describe the relationships between the marketing problem and the available information. Sampling Technique: To study the Project, a Simple Random Technique is used in selecting the sample size from a given population.

Data Collection: Collection of data is done by:

y Primary Sources: The primary sources of data refer to the first hand information.

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Limitations of Study

y The major limitation faced is the time constraint. The time span of 8-10 weeks is too short for understanding the industry as a whole and makes recommendations. y The other limitation is the cost factor. The probability of biasness cannot be ignored as questionnaires are used. y Scope of this project is limited to Delhi and cannot be generalized for the whole of India. y Mostly, consumers are very reluctant to provide answers to the questions as they find it boring and of no use. y Mindset of the people may vary depending upon their age, gender, income etc.

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LIC has built up a vast network of 2. The Corporation has registered a joint venture company in 7 . and also the country¶s largest investor. The Life Insurance Corporation of India also transacts business abroad and has offices in Fiji. outlined the objectives of LIC thus to conduct the business with the utmost economy. while piloting the bill. Shri C. thereby making insurance widely popular. to invest the funds for obtaining maximum yield for the policy holders consistent with safety of the capital. Kuala Lumpur and Life Insurance Corporation (International) E.D. with capital contribution from the Government of India. and has a network of around 1. LIC is associated with joint ventures abroad in the field of insurance namely Ken-India Assurance Company Limited. then. Nairobi. along with satellite offices attached to about some 50 branches.Bahrain. The. 1956 by an Act of Parliament. to charge premium no higher than warranted by strict actuarial considerations. Deshmukh. 1956. Life Insurance Corporation of India (LIC) was formed in September.048 branches.59 Company Profile LIC ± An Overview The LIC is the largest state-owned life insurance company in India. and a spirit of trusteeship. Finance Minister. 1 Service Brand of the Country.C. Mauritius and United Kingdom. 101divisions and 8 zonal offices located in different parts of India. Since nationalization.2 million agents for soliciting life insurance business from the public. United Oriental Assurance Company Limited. to render prompt and efficient service to policy holders.. The recent Economic Times Brand Equity Survey rated LIC as the No. viz. Life Insurance Corporation Act.

Type Industry Founded Headquarters Key people Government-owned Insurance 1st September 1956 Mumbai. An off-shore company L.I.2000 in Katmandu. K. India Corporation T.C. Nepal by the name of Life Insurance Corporation (Nepal)Limited in collaboration with Vishal Group Limited.31 trillion (US $ 202. a local industrial Group.03 billion) Government of India 112.184(2008) LIC Housing Finance Limited LIC (Nepal) Ltd LIC (Lanka) Ltd LIC (International) BSC(C) Website LICindia. S Vijayan (Chairman) D.59 26th December. Dasgupta (MD) Products Life Insurance Pensions Mutual Funds Total Assets Owner(s) Employees Subsidiaries Rs.com 7 . (Mauritius) Offshore Limited has also been set up in 2001 to tap the African insurance market. 9. Mehrotra. Thomas Mathew And A.

was the first native insurance provider.59 HISTORY The Oriental Life Insurance Company. the first corporate entity in India offering life insurance coverage. The Bombay Mutual Life Assurance Society. and it charged Indians heftier premiums. and in between them the period of world wide economic crises triggered 7 . was established in Calcutta in 1818 by Bipin Behari Dasgupta and others. It witnessed India¶s First War of Independence. Europeans in India were its primary target market. formed in 1870. adverse effects of the World War I and World War II on the economy of India. Others insurance companies established in the preindependence are included: y Bharat Insurance Company (1896) y United India (1906) y National Indian (1906) y National Insurance (1906) y Co-operative Assurance (1906) y Hindustan Co-operatives (1907) y Indian Mercantile y General Assurance y Swadeshi Life (later Bombay Life) The first 150 years were marked mostly by turbulent economic conditions.

y LIC Lanka: A joint venture company formed in 2003 with the Bartleet Group of Companies.59 by the Great Depression. The subsequent Insurance Act of 1938 brought stricter state control over an insurance that had seen several financially unsound ventures fail. The Life Insurance Act and the Provident Fund Act were passed in 1912. The Indian Insurance Companies Act of 1928 authorized the govt. to obtain statistical information from companies operating in both life and non-life insurance areas. The aggregate effect of these events led to a high rate of bankruptcies and liquidation of life insurance companies in adversely affected the faith of the general public in the utility of obtaining life cover. LIC International operates in all GCC countries. providing the first regulatory mechanism in the Life Insurance industry. 7 . Sri Lanka. 1989 with the objectives of offering US $ denominated policies to cater to the insurance needs of NRIs and providing insurance services to holders of LIC policies currently residing in the Gulf. The first half of the 20th century also saw a heightened struggle for India¶s Independence. A bill was also introduced in the Legislative Assembly in 1944 to nationalize the insurance industry. Subsidiaries: LIC owns the following subsidiaries: y Life Insurance Corporation of India International: This is a joint venture offshore company promoted by LIC which commenced operations in July. Nepal. y LIC Nepal: A joint venture company formed in 2001 with the Vishal Group of Industries.

59 y LIC Housing Finance: Incorporated in 19 June 1989. It has a Dubai office.Policy Temporary Assurance Policy Assurance Policy Child Career The Plan Endowment The 25yrs Money The Whole Life The Policy. Insurance Plans Of LIC Children Plan Jeevan Anurag Endowment Assurance Plan The Money Back Whole Plan Plan Life Term Assurance Plans Endowment The Back 20yrs Money The Whole Life 2yr Policy. its main objective is to provide long term finance for construction or purchase of house or apartments.Policy-Limited Payment Term Policy Convertible Assurance Assurance Policy.Back Limited Payment Marriage Endowment Jeevan (Double Mitra Jeevan Cover Surabhi-15yrs The Whole Life Anmol Jeevan-I Policy-Single Premium Jeevan Anand Amulya Jeevan-I Insurance Plan) Child Future Jeevan Plan (Triple Mitra Jeevan Cover Surabhi-20yrs Insurance Plan) Komal Jeevan Jeevan Chhaya New Plan Jeevan Amrit Janaraksha Jeevan Surabhi-25yrs Bima Bachat Jeevan Tarang 7 .

Eligibility Conditions: For Basic Plan: Age at entry Age of the Life Assured at maturity Term Minimum Assured Maximum Sum Age of the Life Assured.59 Children Plans Jeevan Anurag: LIC Jeevan Anurag fit plan specifically designed to take care of the educational needs of children. Benefits Death Benefit: Payment of an amount equal to Sum Assured under the basic plan immediately on the death of the life assured. Benefits under the plan are payable at pre-specified durations irrespective of whether the Life Assured survives to the end of the policy term or dies during the term of the policy. The plan can be taken by a parent on his or her own life. In addition.000 /- Sum No limit.50. Sum Assured will be in multiples of 7 . 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. Rs.20 to 60 years (age nearest birthday) Maximum 70 years (age nearest birthday) All terms from 10 to 25 years. In case of single premium mode minimum term shall be 5 Years.

25lakh overall limit taking all term assurance riders availed under all existing policies of the life assured and the term assurance rider under the new proposal into 7 .000 /at Maximum 60 years (age nearest birthday) Maximum Sum An amount equal to the Sum Assured under Basic Plan assured subject to the maximum of Rs.only. Monthly or through salary deductions in case of regular premiums.1.20 to 50 years (age nearest birthday) Age of the Life Assured maturity Term Minimum Sum Assured NIL Rs. For Term Assurance Rider: Age at entry Age of the Life Assured.00.59 assured Mode Rs. Half-yearly. Yearly.5. Quarterly. 000 /.

There are no rebates for quarterly and SSS modes. 5% extra will be charged on the tabular premium. No rebate is available (either made) on the rider premiums.59 consideration.and above.00.1.000/-.One Year y Regular Premium payable during (n-3) Years. Options of Payment of Premium: Following premium paying terms are offered: y Single Premium. Mode NIL Rebates: Mode rebate: 2% for yearly mode and 1% for half yearly mode on the tabular premium.1. For monthly mode.000/.50. No rebate for Sum Assured up to and including Rs. 7 . Large Sum Assured Rebate: 2% of Sum Assured for Sum Assured Rs. where n is the policy term y Regular Premium payable throughout the policy term.

) . & Salary .NIL 7 . Payment of Premiums: You may pay the premiums regularly at yearly.Rebate (Rs.59 Child Career Plan: This plan is specially designed to meet the increasing educational and other needs of growing children.00.99. Rebates: Mode Rebate: Yearly mode Half-yearly mode Quarterly deduction Sum Assured Rebate: Sum Assured 1. It provides the risk cover on the life of child not only during the policy term but also during the extended term.000 to 2.A. .999 5. (i.Nil 1.2 %o S. quarterly or through Salary deductions over the term of policy.000 and above .A.5 %o S. A number of Survival benefits are payable on surviving by the life assured to the end of the specified durations.99. half-yearly.e.000 to 4.999 3.1% of the tabular premium . Premiums may be paid either for 6 years or up to 5 years before the policy term.00.00.2% of Tabular Premium . 7 years after the expiry of policy term).

15% of the Sum Assured .vested Simple Reversionary Bonuses .15% of the Sum Assured .59 Benefits: Survival Benefit: On life assured surviving to the end of the specified durations an amount specified below is payable: 30% of the Sum Assured along with . if any. Death Benefit: On death (after the Date of Commencement of Risk): (I) If death occurs within the period from date of commencement of risk to 5 years before the date of expiry of policy term: Sum Assured along with Vested Simple Reversionary Bonuses and Final (Additional) bonus (if any) payable.15% of the Sum Assured 6On the date of expiry of 15% of the Sum Assured along with policy term Final (Additional) Bonus.15% of the Sum Assured 1 years before the date of expiry of policy term 2 years before the date 3 years before the date of expiry of policy term 4 years before the date of expiry of policy term 5 years before the date of expiry of policy term . (II) If death occurs within 5 years before the date of expiry of policy term: Sum Assured along with Final (Additional) bonus 7 .

All the premiums paid (excluding extra premium and premium for premium waiver benefit.a.Sum Assured is Payable. On death during the Extended Term.000 (f) Maximum Sum Assured Rs. It provides waiver of premiums on death of proposer.Any premiums that have paid during the Auto Cover period also be waived. Further t benefit remain in force during the Auto cover period. Premium Waiver Benefit: The proposer can opt for this benefit if aged between 18 and 55 and is medically fit.000 (g) Policy term (h) Premium Paying term Grace Period: A grace period of one calendar month but not less than 30 days will be allowed for payment of premiums.1.00. if any. Eligibility Conditions and Other Restrictions: (a) Minimum Entry Age (b) Maximum Entry Age 0 years (last birthday) 12 years (last birthday) (c) Minimum Maturity Age 23 years (last birthday) (d) Maximum Maturity Age 27 years (last birthday) (e) Minimum Sum Assured Rs. compounding yearly shall be payable.00.) along with interest of 3% p. 11 to 27 years 6 years and Policy term less 5 years 7 .59 (if any) is payable.100.

subject to production of satisfactory evidence of continued insurability. monthly or through Salary deductions throughout the term of the policy or earlier death. Such bonuses are to be added till maturity even if the life assured dies before the maturity date. Once declared. It gets a share of the profit in the form of bonuses.59 Revival: If the policy is lapsed it can be revived by paying arrears of premium together with interest within a period of five years. half-yearly. quarterly. Bonuses: This is a with profit plan and participates in the profits of the Corporation¶s life insurance business. they form part of the guaranteed benefits of the plan. Final (Additional) Bonus may also be payable provided a policy is of a certain minimum term. Premiums: Premiums are payable yearly. The rate of interest applicable will be as fixed by the Corporation from time to time. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. 7 . Marriage Endowment Or Educational Annuity Plan This is an Endowment Assurance plan that provides for benefits on or from the selected maturity date to meet the Marriage/Educational expenses of the named child.

Endowment assurance plans he endowment assurance policy 7 . surrender value will be available under the plan on earlier termination of the contract. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year¶s premium.59 Benefits: Death Benefit: The Sum Assured plus accrued bonuses up to maturity is payable on maturity even though death occurs during policy term. Guaranteed Surrender Value: The policy may be surrendered after it has been in force for 3 years or more. An additional premium is required to be paid for these benefits. This may be paid in a lump sum or in ten half-yearly instalments at the option of the beneficiary. However. Surrender Value: Buying a life insurance contract is a long-term commitment. Maturity Benefits: The Sum Assured plus all bonuses declared up to maturity date is payable on survival to the end of the term either in a lump sum or in ten half-yearly instalments. as opted by you. Supplementary/Extra Benefits: These are the optional benefits that can be added to your basic plan for extra protection/option.

Benefits: This is the most popular form of life assurance since it not only makes provision for the family of the Life Assured in the event of his early death. this plan is apt for people of all ages and social groups who wish to protect their families from a financial setback that may occur owing to their demise.59 Features: y High bonus y High liquidity y Savings oriented. Suitable For: Being an endowment assurance policy. but also assures a lump sum at any desired age. The amount assured if not paid by reason of his death earlier will payable at the end of the endowment term where it can be invested in an annuity provision for the rest of the policyholder's life or in any other way he may think most suitable at that time. Premiums are usually payable for the selected term of years or until death if it occurs during the term period. The lump sum can be reinvested to provide an annuity during the remainder of his life or in any other way considered suitable at that time. y Moderate premiums This policy not only makes provisions for the family of the Life Assured in event of his early death but also assures a lump sum at a desired age. The amount 7 .

exclusive of any attached bonus.1000/. Bonus: Is there anything extra payable besides the sum assured at the time of claim settlement? Yes. he will not be required to pay further premiums. The reduced sum assured will become payable on the event as stipulated in the policy. but only if it is a µwith profits¶ policy. Other benefits include: Disability Benefit: In case policy holder becomes totally and permanently disabled due to an accident before reaching the age of 70 and the policy is in full force. is not less than Rs.1 per Rs. 7 .59 assured. 250/-.sum assured per year he or his family are entitled to the following benefits on death or permanent disability caused by accident. a free paid-up policy for a reduced sum assured will be automatically secured provided the reduced sum assured. 000 sum assured on any one Accident Benefit: By paying a small extra premium of Rs. becomes payable at the end of the endowment term when it may be invested to provide an annuity during the remainder of his life or in any other way he may think most suitable at the time. Even students above the age of 18 years can avail of this benefit. (the Disability Benefit is available in respect of the first Rs.20. Premium Stoppage: If payment of premiums ceases after at least THREE years' premiums have been paid. if not paid by reason of his earlier death.

59 Plan Parameters: INSURANCE Entry Age Sum (Rs. Of Maximum Paying Period Premium Policy Available Loan HalfYearly. monthly or through Salary deductions. Salary Scheme. Premiums: Premiums are payable yearly. Quarterly.) Term (years) Assured Minimum 12 50000 5 Maximum 65 NO LIMIT 55 Mode Payment Monthly. quarterly. It pays the maturity amount on survival to the end of the policy term. half-yearly. 75 Years Saving Yes Jeevan mitra (double cover endowment plan) This is an Endowment Assurance plan that provides greater financial protection against death throughout the term of plan. Yearly. as opted by you. throughout the term of the policy or earlier death. 7 .

However. Maturity Benefit: The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on survival to the end of the policy term. surrender value will be available under the plan. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. they form part of the guaranteed benefits of the plan. Supplementary/Extra Benefits: These are the optional benefits that can be added to your basic plan for extra protection/option. Table No 133: Thrice the Sum assured plus all bonuses on the basic sum assured to date is payable in a lump sum upon the death of the life assured. 7 . Benefits: Death Benefit: Table No 88: Twice the Sum assured plus all bonuses on the basic sum assured to date is payable in a lump sum upon the death of the life assured. An additional premium is required to be paid for these benefits. It gets a share of the profits in the form of bonuses. Once declared. A Final (Additional) Bonus may also be payable provided a policy has run for certain minimum period.59 Bonuses: This is a with-profit plan and participates in the profits of the Corporation¶s life insurance business. Surrender Value: Buying a life insurance contract is a long-term commitment.

7 . as opted by you. Supplementary/Extra Benefits: These are the optional benefits that can be added to your basic plan for extra protection/option. Benefits: Death Benefit: The Sum assured plus all bonuses to date is payable in a lump sum upon the death of the life assured during the policy term.5lakhs) is payable in a lump sum on accidental death of the life assured during the policy term. It pays the maturity amount on survival Premiums Premiums are payable yearly. In case of permanent disability of the life assured due to accident during the policy term. Accident Benefit: The Sum assured (subject to a limit of Rs. An additional premium is required to be paid for these benefits. quarterly.59 New janaraksha plan This is an Endowment Assurance plan that provides financial protection against death throughout the term of plan. After at least two full years¶ premiums have been paid. this benefit is payable in installments. half-yearly. full insurance cover is available even when premiums are not paid for up to three years. monthly or through Salary deductions. Maturity Benefit: The Sum Assured plus all bonuses declared up to maturity date is payable in a lump sum on survival to the end of the policy term. throughout the term of the policy or earlier death.

Premiums: Premiums are payable yearly. and the balance 40% plus the accrued bonus become payable at the 25th year. monthly or through salary deductions as opted by you throughout the term of the policy. 15 and 20 years. Similarly. In the case of a 20-year Money-Back Policy. For a Money-Back Policy of 25 years . of course so long as the policy holder is alive. 20% of the sum assured becomes payable each after 5. quarterly.59 Money back plans The money back policy 20yrs Unlike ordinary endowment insurance plans where the survival benefits are payable only at the end of the endowment period. An important feature of this type of policies is that in the event of death at any time within the policy term. the bonus is also calculated on the full sum assured. 7 . 15 years. 15% of the sum assured becomes payable each after 5. These are Money Back type Assurance plans that provides financial protection against death throughout the term of plan along with the periodic payments on survival at specified durations during the term. half-yearly. which have already been paid. 10. and the balance of 40% plus the accrued bonus become payable at the 20th year. this scheme provides for periodic payments of partial survival benefits as follows during the term of the policy. 10. the death claim comprises full sum assured without deducting any of the survival benefit amounts.

Supplementary/Extra Benefits: These are the optional benefits that can be added to your basic plan for extra protection/option. Surrender Value: 7 . Survival Benefits: The percentage of Sum Assured as mentioned below will be paid on survival to the end of specified durations: % of Sum Assured paid at the end of specified duration Duration 5 10 15 20 25 Plan 75 20% 20% 20% 40% 93 15% 15% 15% 15% 40% All bonuses declared up to the maturity date will also be paid along with the final survival benefit. An additional premium is required to be paid for these benefits.59 Benefits Death Benefit: The Sum assured plus all bonuses to date is payable in a lump sum upon the death of the life assured during the policy term irrespective of the Survival benefit /benefits paid earlier.

59 Buying a life insurance contract is a long-term commitment. However. Plan Parameters: Minimum Entry age Sum assured (Rs. surrender values are available under the plan on earlier termination Guaranteed Surrender Value: The policy may be surrendered after it has been in force for 3 years or more. Quarterly. The guaranteed surrender value is 30% of the basic premiums paid excluding the first year¶s premium and all survival benefits paid earlier.000 Fixed at 20 for Term (years) Maximum 50 NO LIMIT plan 75 and 25 for plan 93 Mode of Payment Yearly. Monthly. Salary 70 years No Saving Scheme 7 .) 13 (lbd) 50. Half- Maximum Age Maturity Policy available loan yearly.

However.5lakhs on a single life. 106 107 108 Policy Term 15 years 20 years 25 years Premium Term 12 years 15 years 18 years Paying Full sum assured is paid back as survival benefit by the end of premium paying term. the risk cover and additional risk cover continue and the policy participates in profits till the end of policy term. This is a with-profits plan available for three different terms of 15. y Early and higher rate of survival benefit payment. 20 and 25 years with corresponding premium paying terms of 12. Accident Benefit is restricted to the premium paying period and to the overall limit of Rs. main differences in regular money back plans and Jeevan Surabhi are as under: y Maturity term is more than premium paying term. y Risk cover increases every five years.59 Jeevan surabhi Jeevan Surabhi plan is similar to other money back plans. The plan provides a specified percentage of Sum Assured on survival. The actual term and the premium paying term for these plans are as under: Plan no. However. 7 . 15 and 18 years.

quarterly. Premiums: Premiums are payable yearly. The survival benefits already paid. at various stages are shown in the table given below. An additional amount (depending on the duration of the policy) will also be paid on death under such a policy. will not be deducted from this claim amount. if any. Benefits: Death Benefit: The Sum Assured along with the additional cover. monthly or through salary deductions as opted by you throughout the premium paying term of the policy or till the earlier death. the basic sum assured along with the vested bonus will be paid. half-yearly.59 Suitable For: This plan holds special interest to people who besides wishing to provide for their old age and family feel the need for lump sum benefits at periodical intervals. if any. plus all bonuses declared till death is payable in a lump sum upon the death of the life assured during the policy term. The additional amounts payable. Policy 1st year Policy policy year 6th-10th 500 11th15th policy year 1000 16th20th policy year NIL NIL 21st-26th policy year 106 NIL 7 . The survival benefits paid prior to death will not be deducted from the claim amount. If death occurs at anytime during the term of a policy (provided the policy has been kept in force by payment of all premiums that had fallen due).

The guaranteed surrender value is 30% of the basic premiums paid excluding the first year¶s premium in case no survival benefit payment has already fallen due. Guaranteed Surrender Value: The policy may be surrendered after it has been in force for 3 years or more. Where one or more survival benefits have fallen due. Bima bachat LIC Bima Bachat is a money-back policy which offers financial security and assurance to the policy holder and his family.59 107 NIL 500 1000 1500 NIL Maturity Benefit: The policy matures on your survival to the end of the policy term. surrender values are available under the plan on earlier termination of the contract. However. Bima Bachat requires the policy holder to pay only one premium. the guaranteed surrender value will be 30% of the premiums paid on or after the due date of payment of latest survival benefit. Surrender Value: Buying a life insurance contract is a long-term commitment. 7 . The amount paid for the premium depends on the duration of the policy taken and life insurance is available till the date of maturity. An additional premium is required to be paid for these benefits. All bonuses declared up to maturity date will be paid in a lump sum. Supplementary/Extra Benefits: These are the optional benefits that can be added to your basic plan for extra protection/option.

For a term 15 years: The policy holder will receive15% of the sum assured at the end of every 3rd. if any. The following are the requirements that one needs to be aware of before applying for this policy: y The person applying for the policy should have completed 15 years and should not be older than 66 years. 9th and 12th policy year.59 For a term of 9 years: The policy holder will receive 15% of the sum assured at the end of every 3rd and 6th policy year. grace period and revival. The rate of interest for this will be determined from time to time by the corporation. 6th. a single premium payment (excluding extra premium) is made along with loyalty additions. For a term of 12 years: The policy holder will receive 15% of the sum assured at the end of every 3rd and 6th policy year. The guaranteed surrender value is available only after completion of at least one policy year. 12 and 15 years) for the policy depending on the age and requirement of the applicant. y The policy will mature when the person is 75 years old. at the time of maturity. y There is a choice of three terms to choose from (9. 7 . This value is equal to 90 % of the single premium paid (excluding extra premium). Presently the rate of interest is 9% p. Bema Bachat is the only money-back policy that offers a loan facility. payable half-yearly.a. It also offers other benefits like the 15 day cooling off period. If the policy holder outlives the duration of the policy.

59 y The minimum sum that needs to be assured is Rs 20. 1lakh and Less than Rs.000 Rs.1lakh Rs. y It is important to note that the sum assured should be in multiples of Rs 5000/.000 then he has to pay a premium of Rs 34800. 50. 2lakh and above NIL 5% 7% 8% 7 .000 he will have to pay a premium of Rs 36734.2lakh Rs. 50. Other Rebate Percentages: Less than Rs.only. y The policy requires the holder to pay a single premium.75. thus getting a 5% rebate in premium. If the sum assured is Rs 45. But for a sum assured amount of Rs 50. Premium Payment: Let¶s take an example of a 30 year old with a Bima Bachat policy for 12 years.and there is no limit on the amount that can be assured.000 and Less than Rs.000/.13 only.

considering the increased longevity of the Indian population. provided the policy is converted in to a paid-up policy after the premiums are paid for 5 years. 7 . 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. 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. Suitable For: This policy is suitable for people of all ages who wish to protect their families from financial crises that may occur owing to the policyholder¶s premature death.250/-. 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.59 Whole Life Plans 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. However. the Corporation has amended the above provision. 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. If the payment of premium ceases after 3 years.

y The premiums are payable for a period of 35 years or up to age 80 years. half-yearly. monthly or through Salary deductions. Bonuses: This is a with-profit plan and participates in the profits of the Corporation¶s life insurance business. y The premiums are payable for a period of 35 years or up to age 80 years. The premiums are payable up to the selected premium paying period. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. The premium is payable in one lump sum (Single Premium). Benefits: Death Benefit: The Sum assured plus all bonuses to date is payable in a lump sum upon the death of the life assured. whichever is later.The premiums are payable for the periods as specified above or up to earlier death. quarterly.59 Premiums: y The premiums are payable yearly. they form part of the guaranteed benefits of the plan. The premiums are payable up to the selected premium paying period. It gets a share of the profits in the form of bonuses. Once declared. as opted by you. whichever is later. A Final (Additional) Bonus may also be payable provided a policy has run for certain minimum period. 7 .

The guaranteed surrender value is 30% of the basic premiums paid excluding the first year¶s premium. surrender value is available under the plan on earlier termination of the plan. have the option to take the Sum Assured plus all bonuses declared under the policy anytime after 40 years from the date of commencement of the policy provided you have attained. Supplementary/Extra Benefits: These are the optional benefits that can be added to your basic plan for extra protection/option. Surrender Value: Buying a life insurance contract is a long-term commitment. however. However. at least. You. 80 years of age. In case of a single premium policy the guaranteed surrender value is 90% of the single premium paid excluding any extra/additional premium. Guaranteed Surrender Value: The policy may be surrendered after it has been in force for 3 years or more.59 Maturity Benefit: This is a whole of life assurance plan and hence does not have a maturity date. 7 . An additional premium is required to be paid for these benefits.

7 . Maximum (Nearer 60 NO LIMIT N. With Profits Single Premium policies do not cease to participate in profits after completion of the period for which premium has been paid . this plan is suitable for people of all ages and social groups who wish to protect their families from a financial setback that may occur owing to their demise.A.A. relieving him from the necessity of making payments later in life when they might become a burden. Suitable For: Being a limited-payment life assurance policy.but continue to share in the periodical Bonus Distribution until the death of the Life Assured. This is a whole of life assurance plan that provides financial protection against death through out the lifetime of the Life Assured. Plan parameters: Entry age Sum assured (Rs.59 Whole Life Policy-Single Premium This is the best form of life assurance for family provision since it enables the Life Assured to pay the premium during the ordinarily vigorous and most productive years of life.) Term (years) Minimum 12 Birthday) 30000 N.

During the accumulation period policies shall be entitled to receive simple reversionary bonuses which will be payable on survival to the end of the accumulation period or on earlier death. Accumulation Period: The plan offers three Accumulation periods ± 10. 7 . Participation in Profits: Policies under this plan shall participate in profits of the Corporation. A proposer may choose any of them. if any. policies will be entitled to receive a Loyalty Addition payable on maturity or earlier death. Payment of Premium: Premiums can be paid regularly at yearly. 15 and 20 years. the Sum Assured.59 Jeevan Tarang This is a with-profits whole of life plan which provides for annual survival benefit at a rate of 5½ % of the Sum Assured after the chosen Accumulation Period. along with Loyalty Additions. Alternatively. After the accumulation period. a Single Premium can be paid on commencement of a policy. is payable on survival to age 100 years or on earlier death. The vested bonuses in a lump sum are payable on survival to the end of the Accumulation Period or on earlier death. The amount of simple reversionary bonus and Loyalty Addition will depend on the experience of the Corporation. Further. quarterly or monthly intervals or through salary deductions over the Accumulation Period. half-yearly.

7 . The first survival benefit will be payable on survival to one year after the end of the accumulation period. if any. if any is payable.59 Benefits: Survival Benefits: y On survival to the end of the selected accumulation period: Vested reversionary bonuses in a lump sum will be payable. y In case of death of the Life Assured any time after the Accumulation Period. the Sum Assured along with Loyalty Addition. the Sum Assured along with vested reversionary bonuses is payable. the Sum Assured along with Loyalty Addition. Maturity Benefit: On survival to the policy anniversary coinciding with or immediately following the completion of age 100 years. will be payable. y On survival to the end of each year after the accumulation period: 5½% of the Sum Assured will be payable. Death Benefit: y In case of death of the Life Assured during the Accumulation Period.

Presently the rate of interest is 9 % pa payable half-yearly. you may return the policy to us within 15 days. However. half-yearly or quarterly premiums and 15 days for monthly premiums. The rate of interest applicable will be as fixed by the Corporation from time to time.59 Other Benefits: ‡ Loan: Loan facility is available under this plan. Eligibility Conditions For This Plan: Ages at entry: 0 to 60 years nearest birthday Accumulation periods available: 10. ‡ Revival: Subject to satisfactory evidence of continued insurability. a lapsed policy can be revived during the lifetime of the Life Assured but before the expiry of the Accumulation Period within a period of five years from the due date of first unpaid premium by paying arrears of premium together with interest. ‡ Cooling-off period: If you are not satisfied with the terms and conditions of the policy. the rate of interest would be determined from time to time by the Corporation. ‡ Grace period: A grace period of one month but not less than 30 days will be allowed for payment of yearly. 15 and 20 years Maximum age at which premium payment ceases: 70 years nearest birthday Age up to which life cover available: 100 years Minimum age at end of Accumulation Period: 18 years last birthday 7 .

Rs.50% of Sum Assured for Sum Assured Rs 5 lakh and over. 15 and 20 years Modes of premium payment: Yearly.1lakh and over in multiples of Rs. Rebates/Extra for Mode of Premium Payment And High Sum Assured: ‡ Mode Rebate: Yearly mode: 2% of tabular Premium Half-yearly mode: 1% of the tabular premium Quarterly: NIL In case of monthly mode other than SSS.5. 10. equal to the accumulation period.25% of Sum Assured for Sum Assured Rs 5 lakh and over. Rs 2.59 Premium paying terms: Single Premium and. For Single premium Rs. Monthly.7. 000/-. 7 . Quarterly. i.1. ‡ High Sum Assured Rebates: For Annual premium Rs.12.50% of Sum Assured for Sum Assured Rs 2 lakh and over.e. in case of regular premiums.25% of Sum Assured for Sum Assured Rs 2 lakh and over. Half Yearly. an additional amount of 5% of tabular premium will be charged. SSS and Single PremiumSum Assured: Rs.

59 Term Assurance Plans Two Year Temporary Assurance Policy Features: y The Two Year Temporary Assurance policy is designed for the insuring public who requires risk cover for a maximum of two years. The proof of age must also accompany the proposal. y Under the Two Year Temporary Assurance policy a single premium is required to be paid at the outset of the policy to cover the entire period of term. y The policy is not entitled to any surrender value. 7 . y The policy issued will be only under the 'Without Profits' plan. for instance persons who are required to go on tours for instance for a year or so. y No loan will be granted against the Two Year Temporary Assurance policy. Suitable For: The Two Year Temporary Assurance policy caters to the individuals who specifically require insurance cover against risk for a short period of two years. y The proposer is required to pay the medical examination fee.

) 50. 7 . but hope to be able to pay for such a policy in the near future.12.00.18. perhaps a better choice could be made.59 Benefits: Survival Benefit: Not applicable Death Benefit: Total sum assured Plan parameters: Minimum Entry age 18 Maximum 60 1. This plan would be found useful also in cases where it is desired to leave the final decision as to the plan to a later date when.000 Term (years) 6. Policy holders get an option of converting a policy into endowment assurance or limited payment whole life assurance.24 months Mode of Payment Single Premium Maximum paying period 62 years premium Policy available No loan Convertible Term Assurance Policy This plan of assurance is designed to meet the needs of those who are initially unable to pay the larger premium required for a Whole Life or Endowment Assurance Policy.000 Not Applicable Sum assured (Rs.

59 SuitableFor: For all people with earned income under Category I and unearned incomes under Category II. Benefits: SurvivalBenefit:NotApplicable Death Benefit: The sum assured is payable only in the event of death of the Life Assured before the expiry of the specified term.00.00.) 50. basically Standard and sub-Standard lives attracting EMR classes I and II. Plan parameters: Minimum Entry age 20 birthday) (nearer Maximum 50 1.000 7 Sum assured (Rs.000 Term (years) 5 Mode of Payment Maximum paying period premium Policy available loan 7 .

5lakh.1lakh for Sum Assured above Rs. 00. HalfYearly and Single premium Note: The policy would be issued in multiples of Rs.000/Less than 25. 000 . 7 .59 Anmol Jeevan-I Benefits: On Death during the Term of the Policy On Maturity Sum Assured Nil Restrictions: Minimum age at entry Maximum age at entry Maximum age at maturity Minimum Term Maximum Term Minimum Sum Assured Maximum Sum Assured Mode of Premium Payment* 18 years (completed) 55 years (nearer birthday) 65 years 5 years 25 years Rs.5. Yearly.00.

59 Rebate: I ) Sum Assured Rebate: NIL in case of regular premium policies II) Mode Rebate: 1 % of Annual premium for yearly mode and nil for Half-Yearly mode. Age Proof and Medical Requirements: The plan is available to Standard and Sub-standard lives (up to Class VI EMR). Loan: No loan will be granted under this plan. If 7 . Paid-up and Surrender Value: y The policy will not acquire any paid-up value. If death occurs within this period and before the payment of the premium then due. the policy will still be valid and the Sum Assured paid after deduction of the said premium as also unpaid premiums falling due before the next policy anniversary of the Policy. Underwriting. This plan is also available to female lives (category I and II lives only) and to physically handicapped persons subject to certain conditions. Grace Period for Non-Forfeiture Provisions: A grace period of 15 days will be allowed for payment of yearly or halfyearly premiums. Standard age proof will have to be submitted along with the Proposal Form. y No Surrender Value will be available under this plan.

but before the date of expiry of policy term. Payment Of claims: No Claims concession will be applicable to this Policy. No dating back interest shall be charged. it may be revived during the life time of the Life Assured. Back-Dating Interest: The policy can be back dated within the financial year. Revival: If the Policy has lapsed. required for the purposes of revival of the policy.59 the premium is not paid before the expiry of the days of grace. the Policy lapses. including Special Reports. should be borne by the Life Assured. The corporation reserves the right to accept or decline the revival of discontinued policy. if any. The cost of the Medical reports. 7 . The revival of the discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated to the Life Assured. on submission of proof of continued insurability to the satisfaction of the Corporation and the payment of all the arrears of premium together with interest at such rate as may be prevailing at the time of the payment.

2009 for" Most preferred insurance company " y Reader's Digest Trusted Brand Award.NDTV Profit Award 2009 in "Best Life Insurance Category´ y NDTV Profit Business Leadership Award. 2009 y CNBC Awaaz Consumer Award. 2009 (Platinum category ) 7 .59 Achievements & Awards y CNBC Awaaz Consumer awards 2010 y Reader Digest Trusted Brand Insurance category 2010 y Outlook money.

According to you.59 Datagraphical Analysis & Interpreta-tion of Representation of Data Q1. Companies respectively.. Employees Business Man Others After analyzing this data it is found that from the given three respective level of Pvt. and Business employees. and 55% are in favour of LIC. and 30% are in favour of HDFC. Employees 40% Govt. Employees Business Man 70% 60% 50% 40% 30% 20% 10% 0% LIC HDFC ICICI 55% 64% 30% 12% 3% Pvt. 64%. 20%. Govt. and 12% are for ICICI and 15%. 10%. while 25%. 40%. and 3% are in favors of other Pvt. 14%. 12%. Employees Govt. which have played a major role in the field of Life Insurance? Insurance LIC HDFC 25% 12% ICICI 20% 14% Others 15% 10% Pvt. 7 .

while 15%. and 5% are in favors of other Pvt. Govt. Companies respectively. Employees Govt. and Business employees. Which insurance companies have been successful to make strong public base by advertisement? Insurance LIC HDFC 15% 10% ICICI 20% 15% Others 5% 5% Pvt. Employees 60% Govt. Employees Business Man ICICI Others After analyzing this data it is found that from the given three respective level of Pvt. 15%. Employees Business Man 70% 60% 50% 40% 30% 20% 10% 0% LIC HDFC 60% 70% 20% 15% 5% Pvt. 70%. This is because of the fact that LIC is exploiting the larger customer database through its heavy advertisements campaign in different market segments. 20%. 5%. and 15% are for ICICI and 5%.59 Q2. 60%. 7 . and 60% are in favour of LIC. 10%.. and 20% are in favour of HDFC.

Govt. and 20% are for ICICI and 10%. and 50% feel that it is LIC which has gained massive public support in the current fiscal year. 10%. 7 . 60%. 10%. Employees Govt. while 15%..59 Q3. 15%. Companies respectively. 70%. 10%. and 25% are in favour of HDFC. and 5% are in favors of other Pvt. it can be interpreted that from given three respective level of Pvt. Employees 60% Govt. and Business employees. Which insurance company has gained massive public support in the current fiscal year? Insurance LIC HDFC 15% 10% ICICI 15% 10% Others 10% 10% Pvt. Employees Business Man 70% 60% 50% 40% 30% 20% 10% 0% LIC HDFC ICICI 50% 70% 25% 20% 5% Pvt. Employees Business Man Others From the above data.

Sector Business Man The above data shows that the 65% of Pvt. Do you think LIC¶s various insurance plans are in the direction of public welfare? Insurance Pvt. Employees 80% Business Man 80% 70% 60% 50% 40% 30% 20% 10% 0% YES NO 60% Pvt. Sector Govt.59 Q4. Similarly. Employees & 60% and 40% of Business Man agree and disagree with the above statement respectively. 7 . Employees agree that LIC¶s insurance plans are in the direction of public welfare and 35% disagree. Employees YES 65% NO 35% 20% 40% Govt. 80% and 20% of Govt.

Do you think that risk coverage factor included in Insurance policies attracts general public towards the policy? Insurance Pvt. it can be interpreted that 60%. Employees Business Man From the above data. Sector. Sector and Business Sector respectively think the risk coverage factor in insurance policies attractive. Sector and Business Sector respectively don¶t think so. 7 . Employees 80% Business Man 80% 70% 60% 50% 40% 30% 20% 10% 0% YES NO 55% Pvt.59 Q5. Sector. 80% and 55% from the Pvt. Govt. While rest of the 40%. Employees Govt. Govt. Employees YES 60% NO 40% 20% 45% Govt. 20% and 45% from the Pvt.

Employees Govt. Employees Business Man From the above data. Sector. the products should be more transparent & customer-centric whereas only 10% from Pvt.59 Q6. it is found that 90% from Pvt. 7 . Employees YES 90% NO 10% 5% 7% Govt. 5% from Govt. Sector. Sector & 93% from Business man agree with the statement that to success in this evolving industry. 95% from Govt. Sector & 7% from Business man do not agree with the statement. The buzzwords for Do you agree that customer-centricity and Transparency are success in this evolving industry? Insurance Pvt. Employees 95% Business Man 100% 80% 60% 40% 20% 0% YES NO 93% Pvt.

But there are some recommendations that are intensely felt and highly required for insures to sustain in the market. y Insurance Agents should be adequately trained & well educated to convince the general public about different plans and offers. y LIC should be more concerned about physical verification rather than phone verification so as to avoid frauds or cheatings. every possible facilities and effort to build up the confidence of the rising policy holders towards life insurance products are already being done. y Customer awareness programme is required so that more people should attract towards the products of LIC. y If there are any kind of hidden charges then that must be disclosed to the policy holders before giving any policy or other services to them. y The insurance products selling agents must not give any type of wrong information regarding the particular policy which a customer wants to buy. y LIC customer grievance redresses mechanism should be more concerned about the fastest settlement of policy holders¶ problems and queries. 7 . These are as follows: y More and more transparency should be ascertained between insurers and policy holders.59 Suggestions & Recommendations Recommendations: In the modernized well advanced hi-tech approach to the customers.

y LIC should more focus on retaining existing customers. It may be beneficial on both the sides. every insurance company should be customer centered. y LIC must take feedbacks of policy holders regarding various plan features & services. It should be mandatory to every insurer to make more and more responsible and responsive to the policy holders so that comprehensive understanding may be developed among policy holders. in the emerging boom in the insurance company. IRDA should be more and more responsible to the insurance sector by determining some standard. y LIC must focus on segmentation based on customer knowledge. and well versed in the handling of problem and grievances of the policy holders.59 y Particularly. 7 .

y By the entry of private players consumers are expecting the premium to go down which would be the biggest blessing. y A customer awareness programme should take place in rural areas also to educate them about the benefits of taking an insurance policy. Insurance is most popular as more plain protection against death and people are unaware about the other aspects of insurance. y Only few counted people are unaware about the entry of private players into the insurance industry and a very high majority of people support their entry. y Majority of people consider the Insurance premium paid by them as reasonable. 7 .59 Conclusions got by the Consumer Survey Analysis: y Now a day. life and motor Insurance are the most popular ones followed by fire Insurance. y According to the current scenario.

we come at the conclusion that : y There is very tough competition among the private insurance companies on the level of new trend of advertising to attract a major market segment. 7 . Players in the Insurance Sector has expanded the product segment to meet the different levels of the requirements of the customers.59 Conclusion: After overhauling all the situations that boosted a number of Pvt. was adopted by private players. y The entry of the Pvt. y LIC has vast market and very firm grip on its traditional customers and monopoly of life insurance products.that allows life insurers to leverage on the risk product through bank network. y Banc assurance . Companies asociated with multinational in the Insurance Sector to give befitting competition to the established behemoth LIC in public sector. y Private insurers have restricted reach to the customers. y LIC is not left behind in the present race of advertisement. It has brought about greater choice to the customers.

Business Statistics by Addition 2004. Internet: y http://www.gov.P. Gupta S.59 BIBLIOGRAPHY Text books: y Wilson A.asp x?page=PageNo4&mid=2 y http://www.in/ADMINCMS/cms/NormalData_Layout. (2003).irda.P & Dr.org/ y http://www.com/pages/e-Weekly-News.. Gupta M.irdaindia.asp 7 . New Delhi. Marketing Research: An Integrated Approach y Dr.asiainsurancereview.

Which insurance companies have been successful to make strong public base by advertisement? a) LIC b) HDFC c) ICICI d) OTHERS Specify («««) Q. Accordin to you.59 Annexure (Questionnaire) Name. Which insurance company has gained massive public support in the current fiscal year? a) LIC b) HDFC c) ICICI d) OTHERS Specify («««) 7 . Contact Details. which have played a major role in the field of Life Insurance? a) LIC b) HDFC c) ICICI d) OTHERS Specify («««) Q.«««««««««««« Occupation.««««««««.««««««««««« Age..««««««« Q.

Do you think that risk coverage factor included in Insurance policies attracts general public towards the policy? a) YES b) NO 7 . Do you think LIC¶s various insurance plans are in the direction of public welfare? a) YES b) NO Q.59 Q.

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