preface

RESEARCH REPORT is an integral part of our academic curriculum. During the RESEARCH a student gets an opportunity to understand the practical aspects of theory. RESEARCH makes the concept clearer. The topic allotted to me by the college is A study on the preferences of lic policy holders towards acquisition of policies. The RESEARCH emphasizes on the comparative study of the LIC company. I have tried to my best to make a good report. However no one can claim perfection in its entirely. So I apologize for the discrepancy, if any, crept in. Preparation of RESEARCH requires perseverance, initiatives, proper guidance and direction. So its mandatory to take the aid of various departments. Actually a RESEARCH summarized forms of seven activities. They are Planning Resource collection Organizing Joint efforts Efficiency Communication Transparency

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declaration
I, MITHILESHWAR PRATAP SINGH, student of M.B.A. final year of GBAMS Mirzapur, Batch-2009-2011, hereby declare that this dissertation entitled A study on the preferences of lic policy

holders towards acquisition of policies is based on my

original research work and has not been submitted for the award of any other degree, diploma or fellowship and has not been published in any journal or magazine. All the persons who helped me during and in the preparation of this report are duly acknowledged. The results that are published here are purely for academic purpose only.

DATE: PLACE: MITHILESHWAR PRATAP SINGH

G.B.A.M.S Mirzapur

ACKNOWLEDGEMENT
The basic aim of this Research is to know and understand Preferences of LIC policy in the life and to become aware of the corporate environment. At the outset, I extend my heart felt thanks to faculty for their guidance and supervision. They cooperated me for present Research entitled A

study on the preferences of lic policy holders towards acquisition of policies.

I am especially grateful to My Research Report Guide, for his constant guidance and support during the entire period of my RESEARCH work. I sincerely thank him for his co-operation in solving all my queries while developing this RESEARCH. I am grateful to all my teachers who help me and solved all my problems that I faced during this Research RESEARCH.

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Table of content
CHAPTERS TO BE COVERED INTRODUCTION LITERATURE REVIEW OBJECTIVE OF STUDY RESEARCH METHODOLOGY ANALYSIS OF DATA FINDINGS SUGGESTION CONCLUSION BIBLIOGRAPHY QUESTIONNAIRE PAGE NO. 5 23 24 25 26 64 66 67 68 69

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Every day we wake up to the fact that more than 250 million lives are part of our family called LIC.

We are humbled by the magnitude of the responsibility we carry and realise the lives that are associated with us are very valuable indeed.

Though this journey started over five decades ago, we are still conscious of the fact that, while insurance may be a business for us, being part of millions of lives every day for the past 52 years has been a process called TRUST.

A true saga Of Trust.

G.B.A.M.S Mirzapur

HISTORY Brief History Of Insurance

The story of insurance is probably as old as the story of mankind. The same instinct that prompts modern businessmen today to secure themselves against loss and disaster existed in primitive men also. They too sought to avert the evil consequences of fire and flood and loss of life and were willing to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largely a development of the recent past, particularly after the industrial era past few centuries yet its beginnings date back almost 6000 years. Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insurance companies established during that period were brought up with the purpose of looking after the needs of European community and Indian natives were not being insured by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies came into existence to carry the message of insurance and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired by nationalism. The

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Swadeshi movement of 1905-1907 gave rise to more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Prior to 1912 India had no legislation to regulate insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. But the Act discriminated between foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not only life insurance but also non-life insurance to provide strict state control over insurance business. The demand for nationalization of life insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were operating in India at
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the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost. LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956. Since life insurance contracts are long term contracts and during the currency of the policy it requires a variety of services need was felt in the later years to expand the operations and place a branch office at each district headquarter. Re-organization of LIC took place and large numbers of new branch offices were opened. As a result of re-organisation servicing functions were transferred to the branches, and branches were made accounting units. It worked wonders with the performance of the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new business. But with re-organisation happening in the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies. Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8 zonal offices, 992 satallite offices and the Corporate office. LICs Wide Area Network covers 109 divisional offices and connects all the branches through

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a Metro Area Network. LIC has tied up with some Banks and Service providers to offer on-line premium collection facility in selected cities. LICs ECS and ATM premium payment facility is an addition to customer convenience. Apart from online Kiosks and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year. From then to now, LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business. The same motives which inspired our forefathers to bring insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps of security in as many homes as possible and to help the people in providing security to their families.

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Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company, the first life insurance company on Indian soil started functioning. 1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started its business. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 crore from the Government of India. The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British.

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Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

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OBJECTIVES

Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching all insurable persons in the country and providing them adequate financial cover against death at a reasonable cost.

Maximize mobilization of people's savings by making insurance-linked savings adequately attractive.

Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return.

Conduct business with utmost economy and with the full realization that the moneys belong to the policyholders.

Act as trustees of the insured public in their individual and collective capacities.

Meet the various life insurance needs of the community that would arise in the changing social and economic environment.

Involve all people working in the Corporation to the best of their capability in furthering the interests of the insured public by providing efficient service with courtesy.

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Promote amongst all agents and employees of the Corporation a sense of participation, pride and job satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

MISSION & VISION Mission "Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development."

Vision "A trans-nationally competitive financial conglomerate of significance to societies and Pride of India."

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We Operate All Over India

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KNOW BOUT YOUR LIFE INSURANCE

Life insurance in India made its debut well over 100 years ago.

In our country, which is one of the most populated in the world, the prominence of insurance is not as widely understood, as it ought to be. What follows is an attempt to acquaint readers with some of the concepts of life insurance, with special reference to LIC.

It should, however, be clearly understood that the following content is by no means an exhaustive description of the terms and conditions of an LIC policy or its benefits or privileges.

For more details, please contact our branch or divisional office. Any LIC Agent will be glad to help you choose the life insurance plan to meet your needs and render policy servicing.

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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.

Among other things, the contract also provides for the payment of premium periodically to the Corporation by the policyholder. Life insurance is universally acknowledged to be an institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. By and large, life insurance is civilisation's partial solution to the problems caused by death. Life insurance, in short, is concerned with two hazards that stand across the life-path of every person: 1. That of dying prematurely leaving a dependent family to fend for itself. 2. That of living till old age without visible means of support.

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Life Insurance Vs. Other Savings Contract Of Insurance: A contract of insurance is a contract of utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this important principle, which applies to all forms of insurance.

At the time of taking a policy, policyholder should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the risk would render the insurance contract null and void. Protection: Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.

Aid To Thrift: Life insurance encourages 'thrift'. It allows long-term savings since payments can be made effortlessly because of the 'easy instalment' facility built into the scheme. (Premium payment for insurance is either monthly, quarterly, half yearly or yearly). For example: The Salary Saving Scheme popularly known as SSS, provides a convenient method of paying premium each month by deduction from one's salary. In this case the employer directly pays the deducted premium to LIC. The Salary

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Saving Scheme is ideal for any institution or establishment subject to specified terms and conditions.

Liquidity: In case of insurance, it is easy to acquire loans on the sole security of any policy that has acquired loan value. Besides, a life insurance policy is also generally accepted as security, even for a commercial loan.

Tax Relief: Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is available for amounts paid by way of premium for life insurance subject to income tax rates in force. Assessees can also avail of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for insurance than otherwise.

Money When You Need It: A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-totime. Children's education, start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies. Alternatively, policy money can be made available at the time of one's retirement from service and used for any specific purpose, such as, purchase of a house or for other investments. Also, loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions).

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Who Can Buy A Policy?

Any person who has attained majority and is eligible to enter into a valid contract can insure himself/herself and those in whom he/she has insurable interest.

Policies can also be taken, subject to certain conditions, on the life of one's spouse or children. While underwriting proposals, certain factors such as the policyholders state of health, the proponent's income and other relevant factors are considered by the Corporation.

Insurance For Women

Prior to nationalisation (1956), many private insurance companies would offer insurance to female lives with some extra premium or on restrictive conditions. However, after nationalisation of life insurance, the terms under which life insurance is granted to female lives have been reviewed from time-to-time.

At present, women who work and earn an income are treated at par with men. In other cases, a restrictive clause is imposed, only if the age of the female is up to 30 years and if she does not have an income attracting Income Tax.

Medical And Non-Medical Schemes

Life insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also to avoid

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inconvenience, LIC has been extending insurance cover without any medical examination, subject to certain conditions. With Profit And Without Profit Plans An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any, after periodical valuations are allotted to the policy and are payable along with the contracted amount.

In 'without' profit plan the contracted amount is paid without any addition. The premium rate charged for a 'with' profit policy is therefore higher than for a 'without' profit policy.

Keyman Insurance Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm against financial losses, which may occur due to the premature demise of the Keyman.

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AWARDS

CNBC Awaaz Consumer awards 2010

Reader Digest Trusted Brand Insurance category 2010

OUTLOOK MONEY -- NDTV PROFIT AWARD 2009 in World Brand Congress Award " BEST LIFE INSURER CATEGORY

Golden Peacock Innovative Product / Service Award - 2009

ASIA PACIFIC HRM Congress, 2009 Award for INNOVATIVE HR PRACTICES

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Loyalty Award - 2009

NDTV Profit Business Leadership Award 2008

INDY's Silver Award for Best Corporate Film

NASCOM IT USER Award 2008

Business Superbrand India 2009

ASIA BRAND CONGRESS BRAND LEADERSHIP AWARD, 2008

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Raman and Gaytari (2004) have observed during the research on Customers Awareness Towards New Insurance Companies that 53 percent of policy holders belong to the age group of below 30 years. Sharma Ravi Kumar (2005) identified that 93.86 percent of the respondents considered the Insurance Policy indispensable for risk protection. Namasivayam et al (2006) studied that the socio-economic factors are responsible for the purchase of the policies. They concluded that the age , educational qualification. and sex of the policy holders are insignificant but income and occupation level are significant.

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1) To study the policy holders preferences towards acquisition of policies. 2) To identify the gender, age, qualification, income,differences during the acquisition of policies. 3) To enlist the ways and means to promote more policies through purchase rather than sale.

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PRIMARY DATA The primary data were collected from the policy holders who acquired the life insurance policies with reference to Mirzapur Dist, Uttar Pradesh. The primary data were collevted through a structured interview scheduked from 50 policy holders of Mirzapur Dist Immediately after the pilot study. During the research,50 policy holders responses were examined and finally analysed to penetrate the problem. Due to absence of the standard factors of preference towards policies by the holders, an exclusive list of preference was devised and studied. SECONDARY DATA For studying the behavior of LIC policy holders towards acquisition, yhe data had been collected from various websites and the journal of insurance times, the Insurance Chronicle, the journal of IRDA etc.

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WHAT IS INSURANCE The definition of insurance can be made from two points: (i) Functional Definition and, (ii) Contractual Definition. Functional Definition Insurance is a co-operative device to spread the loss caused by a particular risk over a number of persons, who are exposed to it and who agree to insure themselves against the risk. Thus, the insurance is(a) A cooperative device to spread the risk; (b) the system to spread the risk over a number of persons who are insured against the risk; (c) the principle to share the loss of each member of the society on the basis of probability of loss to their risk; and (d) the method to provide security against losses to the, insured.

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Contractual Definition Insurance may be defined an agreement as a consisting one party (the insurer) who agrees to pay to the other party (the insured) or his beneficiary, a certain sum upon a given contingency (the risk) against which insurance is sought

FUNCTIONS OF INSURANCE

The functions of insurance can be studied into two parts() Primary Functions, and () Secondary Functions. Primary Functions (i) Insurance provides certainty: Insurance provides certainty of payment at the uncertainty of loss. Better planning and administration can reduce the uncertainty of loss. But, the insurance relieves the person from such difficult task. (ii) Insurance provides protection: The main functions of the insurance are to provide protection against the probable chances of loss. (iii) Risk- Sharing: The risk is uncertain, and therefore, the loss arising from the risk is also uncertain. All the persons who are exposed to the risk share when risk takes place the loss. Secondary Functions Besides the above primary functions, the insurance works for the following functions: (I)Prevention of loss: The insurance joins hands with those institutions which are engaged in preventing the losses of the society because the reduction in loss causes
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lesser payment to the assured and so more saving is possible which will assist in reducing the premium Lesser premium invites more business and more business causes lesser share to the assured. So again premium is reduced to, which will stimulate more business and more protection to the masses. (II)It provides Capital. The insurance provides capital to the society. The accumulated funds are invested in productive channel. The dearth of capital of the society is minimized, to a greater extent with the help of investment of insurance. The industry, the business and the individual are benefited by the investment and loans of the insurers (I)It improves Efficiency. The insurance eliminates worries and miseries of losses at death and destruction of property. The care- free person can devote his body

(i) and soul together for better achievement. It improves not only his efficiency,but the efficiencies of the masses are also advanced.

(ii) It helps economic Progress. The insurance by protecting the society from huge losses of damage, destruction and death. Provides an initiative to work hard for the betterment of the masses. The next factor of economic progress, the capital, is also immensely provided by the masses. The property, the valuable assets,the man. The machine and the society cannot lose much fit the disaster.

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KINDS OF INSURANCE
The insurance can be divided from two angles; first, from the business point of view and the second, from the risk point of view. BUSINESS POINT OF VIEW The insurance can be classified into three categories from business point of view: (i) Life Insurance, (ii) General Insurance, and (iii) Social Insurance. (i) Life Insurance Life Insurance is different from other insurance in the sense that, here, the subject matter of insurance is life of human being. The insurer will pay the fixed amount of insurance at the time of death or at the expiry of certain period. At present, life insurance enjoys maximum scope because the life is the most important property of the society or an individual. Each and every person requires the insurance. This insurance provides protection to the family at the premature death or gives adequate amount at the old age when earning capacities are reduced.

Under personal insurance a payment is made at the accident. The insurance is not only a protection but is a sort of investment because a certain sum is returnable to the inured at the death or at the expiry of a period.

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(ii) General Insurance The general insurance includes property insurance, liability insurance and other forms of insurance. Fire and marine insurances are strictly called property insurance. Motor, theft, fidelity and machine insurances include the extent of liability insurance to a certain extent. The strictest form of liability insurance is fidelity insurance, whereby the insurer compensates the loss to the insured when he is under the liability of payment to the third party. A. Property Insurance: Under the property insurance property of a person/persons are insured against a certain specified risk. The risk may be fire or marine perils, theft of property or goods, damage to property at accident. i) Marine Insurance: Marine insurance provides protection against loss is marineperils. The marine perils are collision with rock, or ship, attacks by enemies, fire, and capture by pirates, etc. These perils cause damage, destruction or disappearance of the ship and cargo and non-payment of freight. So, marine insurance insures ship, Cargo and freight. The scope of marine insurance had been divided into two parts: (i) Ocean Marine Insurance and (ii) Inland Marine Insurance.

(iii) Fire Insurance: Fire insurance covers risks of fire. In the absence of fire insurance, the fire waste will increase not only to the individual but to the society as well. With the help of fire insurance, the losses arising due to fire are compensated and the society is not losing much.

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(iv) Miscellaneous Insurance: The property, goods, machine, furniture, automobile, valuable articles, etc. can be insured against the damage or destruction due to accident or disappearance due to theft. There are different forms of insurances for each type of the said property whereby not only property insurance exists but liability insurance and personal injuries are also insured . B. Liability Insurance: The general insurance also includes liability insurance whereby the insured is liable to pay the damage of property or to compensate the loss & personal injury or death. This insurance is seen in the form of fidelity insurance, automobile insurance and machine insurance, etc. B. Other Forms: Besides the property and liability insurances, there are certain other insurances, which are included under general insurance. The example of such insurances is export-credit insurances. State employees insurance etc, whereby the insurer guarantees to pay certain amount at the certain events. This insurance is extending rapidly these days.) Social Insurance The social insurance is to provide protection to the weaker section of the society who are unable to pay the premium for adequate insurance. Pension plans, disability benefits, unemployment benefits, sickness insurance and industrial insurance are the various forms of social insurance. With the increase of the socialistic ideas, the social insurance is an obligatory duty of the nation. The Government of a country must provide social insurance to its masses.

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INSURANCE

PERSONAL INSURANCE

PROPERTY

LIABILITY

FIDILITY

LIFE

MARINE

THIRD PARTY

PERSONAL

FIRE

EMPLOYEES

HEALTH

AUTOMOBILE

MOTOR INSURANCE REINSURANCE

CATTLE

CROP

FIDUCIARY

MACHINERY

CREDIT

THEFT

PRIVELEGE

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INSURANCE IN INDIA The insurance sector in India has come a full circle from being an open competitive market to nationalisation and back to a liberalised market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. A brief history of the Insurance sectorThe business of life insurance in India in its existing form started in India in the year 1818 with the establishment of the Oriental Life Insurance Company in Calcutta. Some of the important milestones in the life insurance business in India are: 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. 1938:Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and foreign insurers and provident societies taken over central government and nationalised. LlC formed by an Act of Parliament, viz. LlC Act, 1956, with a capital contribution of As. 5 crore from the Government of India.

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Insuran ce act 1938

Life insurance corporati on act, 1956

The General insurance business in India, on the other hand, can trace its roots to the Triton Insurance Company Ltd., the first general insurance company established in the year 1850 in Calcutta by the British. Some of the important milestones in the general insurance business in India are: 1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all Classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972:The General Insurance Business (Nationalisation) Act, 1972 nationalised the general insurance business in India with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companies viz. the

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National Insurance Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated a a company. Insurance sector reforms In 1993, Malhotra Committee, headed by former Finance Secretary and RB I Governor R.N. Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at "creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind structural changes currently underway and recognising that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. . ." In 1994, the committee submitted the report and some of the key recommendations included: i) Structure Government stake in the insurance Companies to be brought down to Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate

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ii) Competition Private Companies with a minimum paid up capital of Rs.1 bn should be allowed to enter the industry. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State level Life Insurance Company should be allowed to operate in each state iii) Regulatory Body The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance (Currently a part from the Finance Ministry) should be made independent. Iv) Investments Mandatory Investments of LlC life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than 5% in any company (There current holdings to be brought down to this level over a period of time).

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v) Customer Service LlC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerisation of operations and updating of technology to be carried out in the insurance industry. The committee emphasised that in order to improve the customer services and increase the coverage of the insurance industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 Crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body. INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA's online service for issue and renewal of licenses to agents.

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The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce insurance agents in place to sell their products. Which are expected to be introduced by early next year. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. In the private sector 151ife insurance and 15 non-life insurance companies have been registered.

PRIVATE PLAYERS The introduction of private players in the industry has added to the colors in the dull industry. The initiatives taken by the private players are very competitive and have given immense competition to the on time monopoly of the market LlC. Since the advent of the private players in the market the industry has seen new and innovative steps taken by the players in this sector. The new players have improved the service quality of the insurance Following companies are present in the Life Insurance Industry in India

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G.B.A.M.S Mirzapur

Name of the Players:Bajaj Allianz Life Insurance Company Limited. Birla Sun Life Insurance Co. Ltd HDFC Standard Life Insurance Co. Ltd ICICI Prudential Life Insurance Co. Ltd ING Vysya Life Insurance Company Pvt. Ltd. Life Insurance Corporation of India Max New York Life Insurance Co. Ltd Kotak Mahindra Old Mutual Life Insurance Limited SBI Life Insurance Co. Ltd Tata AIG Life Insurance Company Limited Reliance Life Insurance Company Limited.

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G.B.A.M.S Mirzapur

As individuals it is inherent to differ. Each individual's insurance needs and requirements are different from that of the others. LIC's Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement.

Bima Account1 Bima Account2

Endowment Plus

Jeevan Anurag CDAEndowment Vesting At21 CDAEndowment Vesting At18

Komal Jeevan Marriage Endowment Or Educational AnnuityPlan

40

G.B.A.M.S Mirzapur

Jeevan Kishore ChildCareer Plan ChildFortune Plus

JeevanChhaya ChildFuture Plan

Jeevan Aadhar Jeevan Vishwas

The Endowment Assurance Policy The Endowment Assurance Policy-LimitedPayment JeevanMitra(Double Cover Endowment Plan) JeevanMitra(Triple Cover Endowment Plan) Jeevan Anand NewJanaraksha Plan Jeevan Amrit

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G.B.A.M.S Mirzapur

JeevanShree-I JeevanPramukh

The MoneyBack Policy-20 Years The MoneyBack Policy-25 Years JeevanSurabhi-15 Years JeevanSurabhi-20 Years JeevanSurabhi-25 Years Bima Bachat

JeevanBharati - I

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G.B.A.M.S Mirzapur

The Whole Life Policy The Whole Life Policy- LimitedPayment The Whole Life Policy- SinglePremium Jeevan Anand Jeevan Tarang

Two Year TemporaryAssurance Policy The Convertible TermAssurance Policy AnmolJeevan-I Amulya Jeevan-I

JeevanSaathi Plus JeevanSaathi

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G.B.A.M.S Mirzapur

INFORMATION TECHNOLOGY & LIC LIC has been one of the pioneering organizations in India who introduced the leverage of Information Technology in servicing and in their business. Data pertaining to almost 10 crore policies is being held on computers in LIC. We have gone in for relevant and appropriate technology over the years.

1964 saw the introduction of computers in LIC. Unit Record Machines introduced in late 1950s were phased out in 1980s and replaced by Microprocessors based computers in Branch and Divisional Offices for Back Office Computerization. Standardization of Hardware and Software commenced in 1990s. Standard Computer Packages were developed and implemented for Ordinary and Salary Savings Scheme (SSS) Policies.

FRONT END OPERATIONS With a view to enhancing customer responsiveness and services , in July 1995, LIC started a drive of On Line Service to Policyholders and Agents through Computer. This on line service enabled policyholders to receive immediate policy status report , prompt acceptance of their premium and get Revival Quotation, Loan Quotation on demand. Incorporating change of address can be done on line. Quicker completion of proposals and dispatch of policy documents have become a reality. All our 2048 branches across the country have been covered under frontend operations. Thus all our 100 divisional offices have achieved the distinction of 100% branch computerisation. New payment related Modules pertaining to both ordinary & SSS policies have been added to the Front End Package catering to

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G.B.A.M.S Mirzapur

Loan, Claims and Development Officers Appraisal. All these modules help to reduce time-lag and ensure accuracy.

METRO AREA NETWORK A Metropolitan Area Network, connecting 74 branches in Mumbai was commissioned in November, 1997, enabling policyholders in Mumbai to pay their Premium or get their Status Report, Surrender Value Quotation, Loan Quotation etc. from ANY Branch in the city. The System has been working successfully. More than 10,000 transactions are carried out over this Network on any given working day. Such Networks have been implemented in other cities also.

WIDE AREA NETWORK All 7 Zonal Offices and all the MAN centres are connected through a Wide Area Network (WAN). This will enable a customer to view his policy data and pay premium from any branch of any MAN city. As at November 2005, we have 91 centers in India with more than 2035 branches networked under WAN.

INTERACTIVE VOICE RESPONSE SYSTEMS (IVRS) IVRS has already been made functional in 59 centers all over the country. This would enable customers to ring up LIC and receive information (e.g. next premium due, Status, Loan Amount, Maturity payment due, Accumulated Bonus etc.) about their policies on the telephone. This information could also be faxed on demand to the customer.

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G.B.A.M.S Mirzapur

LIC ON THE INTERNET Our Internet site is an information bank. We have displayed information about LIC & its offices . Efforts are on to upgrade our web site to make it dynamic and interactive.The addresses/e-mail Ids of ur Zonal Offices, Zonal Training Centers, Management Development Center, Overseas Branches, Divisional Offices and also all Branch Offices with a view to speed up the communication process.

PAYMENT OF PREMIUM AND POLICY STATUS ON INTERNET

LIC has given its policyholders a unique facility to pay premiums through Internet absolutely free and also view their policy details on Internet premium payments.There are 11 service providers with whom L I C has signed the agreement to provide this service.

INFORMATION KIOSKS We have set up 150 Interactive Touch screen based Multimedia KIOSKS in prime locations in metros and some major cities for dissemination information to general public on our products and services. These KIOSKS are enable to provide policy details and accept premium payments.

INFO CENTRES We have also set up 8 call centres, manned by skilled employees to provide you with information about our Products, Policy Services, Branch addresses and other organizational information.

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G.B.A.M.S Mirzapur

HELP TO SERVE BETTER

Admission Of Age:

Age is the main basis of calculation of premium under life insurance policies. The following are accepted as evidence of age:

Certified extract from Municipal or Local Bodys records made at the time of birth.

Certificate of Baptism or Certified Extract from Family Bible, if it contains age or date of birth.

Certified Extract from School or College records, if age or date of birth is stated therein.

Certified Extract from Service Register in the case of Govt. employees and employees of Quasi-Govt. Institutions or

Passport issued by the Passport Authorities in India.

Payment Of Premium:

By cash, local cheque (subject to realization of cheque), Demand Draft at Branch Office.

The DD and cheques or Money Order may be sent by post. You can pay your premiums at any of our Branches as 99% of our Branches are networked.

Many Banks do accept standing instructions to remit the premiums. So by providing a standing instruction to your Bank to debit your account for the

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G.B.A.M.S Mirzapur

premium amount and send it vide a bankers cheque to LIC, on the due dates and months mentioned on your policy bond.

Through Internet : Payment of premiums can be made through Internet through Service Providers viz.HDFC Bank, ICICI Bank, Times of Money, Bill Junction, UTI Bank, Bank of Punjab, Citibank, Corporation Bank, Federal Bank and BillDesk.

Premium payment can also be made through ATMs of Corporation Bank and UTI Bank.

Premium payment can also be made through Electronic Clearing Service (ECS) which has been launched at Mumbai, Hyderabad, Chennai, Kolkata, New Delhi, Kanpur, Bangalore, Vijaywada, Patna, Jaipur, Chandigarh, Trivandrum, Ahmedabad, Pune, Goa and Nagpur, Secunderabad & Visakhapatnam. A policyholder having an account in any Bank which is a Member of the local Clearing House can opt for ECS debit to pay premiums. The policyholders wishing to use this system would have to fill up a Mandate Form available at our Branches/DO and get it certified by the Bank. The certified Mandate Forms are to be submitted to our BO/DO. Policy can be anywhere in India.

Citibank Kiosks at Industrial Assurance Building, Churchgate, New India Building, Santacruz, Jeevan Shikha Building, Borivili are dedicated for collection of premiums through cheques.

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G.B.A.M.S Mirzapur

Days Of Grace:

Policyholder should pay the premiums on due dates. However, a grace period of one month but not less than 30 days will be allowed for payment of yearly/half-yearly/quarterly premiums and 15 days for monthly premiums.

When the days of grace expire on a Sunday or a public holiday, the premium may be paid on the following working day to keep the policy in force.

If the premium is not paid before the expiry of the days of grace, the policy lapses.

Revival Of Lapsed Policy:

If the policy has lapsed, it can be revived during the life time of the life assured, within a period of five years from the date of the first unpaid premium but before the date of maturity subject to certain conditions.

The Corporation offers three convenient schemes of revival viz., Ordinary Revival, Special Revival and Installment Revival. Policies can also be revived under Loan-cum-Revival and SB-cum-Revival schemes.

Request for revival may be made to the Branch Office servicing the policy.

Change Of Address And Transfer Of Policy Records:

The policyholder should immediately intimate the change of his/her address to the Branch Office servicing the policy. The correct address facilitates better service and quicker settlement of claims.

Policy records can also be transferred from one Branch Office to another for servicing, as requested by the policyholder.

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G.B.A.M.S Mirzapur

Loss Of Policy Document:

The Policy Document is an evidence of the contract between the Insurer and the Insured. Hence the policyholder should preserve the Policy Bond till the contracted amount under it is settled.

Loss of the Policy Document should be immediately intimated to the Branch Office where it is serviced.

Loans:

Loans are granted on policies to the extent of 90% of Surrender Value of the policies which are in force and 85% of the Surrender Value in case of policies which are paid-up, inclusive of the cash value of bonus. The rate of interest charged at present is 9% p.a. payable half-yearly.

Loans are not granted for a period shorter than six months. The Conditions and Privileges printed on the back of the Policy Bond states whether a particular policy is with or without the loan facility.

Relief To Policyholders:

The Corporation generally allows concessions on payment of premiums, settlement of claims, issue of duplicate policies, etc when the policyholder are affected by natural calamities such as droughts, cyclones, floods, earthquakes, etc.

Nomination:

Nomination is a right conferred on the holder of a Policy of Life Assurance on his own life to appoint a person/s to receive policy moneys in the event of
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G.B.A.M.S Mirzapur

the policy becoming a claim by the assureds death. The Nominee does not get any other benefit except to receive the policy moneys on the death of the Life Assured. A nomination may be changed or cancelled by the life assured whenever he likes without the consent of the Nominee. Ensure nomination exists in the policy for easy settlement of claims. Assignment:

Assignment means transfer of rights, title and interest. When an assignment is executed, all rights, title and interest in respect of the property assigned are immediately transferred to the Assignee/s and the Assignee/s become the owner/s of the policy subject to any lawful condition made in the assignment.

Assignment can be either conditional or absolute. On assignment (other than to LIC), Nomination automatically stands cancelled. Hence, when such a policy is reassigned, the policyholder will have to make a fresh nomination to avoid delay in settlement of claim.

Survival Benefit/Maturity Claims:

LIC settles survival benefit/maturity claims on or before the due date. Policyholder are intimated well in advance by the Branch Office which services the policy regarding the payment, and the necessary Discharge Voucher is also sent for execution by the assured. In case the policyholder does not get any intimation from the Branch Office concerned, he/she should contact them, quoting the Policy Number.

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G.B.A.M.S Mirzapur

Survival Benefit payment up to Rs.60,000/- are settled without insisting for Policy Bond and Discharge Voucher.

Death Claims:

If the life assured dies during the term of the policy, death claim arises. The death of the policyholder should be immediately intimated in writing to the Branch Office where the policy is serviced along with the following particulars: 1. The No./s of the policy/ies 2. The name of the policyholder 3. Death Certificate issued by concerned Authority 4. The date of death 5. The cause of death and 6. Claimants relationship with the deceased

On receipt of the intimation of death, necessary claim forms are sent by the Branch Office for completion along with instructions regarding the procedure to be followed by the claimant.

The claims which have arisen after a period of three years are treated as nonearly claims and settled within 30 days from the date of receipt of all requirements.

The claims that have arisen within a period of two years from the date of commencement of the policy, are treated as early claims and investigation is compulsory in such cases.

The claim is usually payable to the nominee/assignee or the legal heirs, as the case may be. However, if the deceased policyholder has not

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G.B.A.M.S Mirzapur

nominated/assigned the policy or if he/she has not made a suitable provision regarding the policy moneys by way of a Will, the claim is payable to the holder of a Succession Certificate or some such evidence of title from a Court of Law.

The Corporation grants claims concessions under certain Plans whereby payment of full sum assured is made, subject to the deduction of unpaid premiums with interest till the date of death and unpaid premiums falling due before the next anniversary of the policy, in the event of the death of the life assured within a period of six months or one year from the date of the first unpaid premium, provided premiums have been paid for at least three years and five years respectively.

Claim Review Committee: The Corporation settles a large number of Death Claims every year. Only in case of fraudulent suppression of material information is the liability repudiated. This is to ensure that claims are not paid to fraudulent persons at the cost of honest policyholders. The number of Death Claims repudiated is, however, very small. Even in these cases, an opportunity is given to the claimant to make a representation for consideration by the Review Committees of the Zonal office and the Central Office. As a result of such review, depending on the merits of each case, appropriate decisions are taken. The Claims Review Committees of the Central and Zonal Offices have among their Members, a retired High Court/District Court Judge. This has helped providing transparency and confidence in our operations and has resulted in greater satisfaction among claimants, policyholders and public.

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Insurance Ombudsman:

The Grievance Redressal Machinery has been further expanded with the appointment of Insurance Ombudsman at different centers by the Government of India. At present there are 12 centres operating all over the country.

Following type of complaints fall within the purview of the Ombdusman a) any partial or total repudiation of claims by an insurer; b) any dispute in regard to premiums paid if payable in terms of the policy; c) any dispute on the legal construction of the policies in so far as such disputes relate to claims; d) delay in settlement of claims; e)non-issue of any insurance document to customers after receipt of premium.

Policyholder can approach the Insurance Ombudsman for the redressal of their complaints free of cost.

Initiatives In Policy Servicing Areas:

All 2048 Branches of LIC are fully computerized covering all policy servicing aspects to give prompt computerized services from new policy introduction, acceptance of renewal premium, revivals, loans, etc to final claims settlement.

Green Channel facility has been introduced for the speedy completion of proposals.

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G.B.A.M.S Mirzapur

Payment of premiums can be made through internet through service providers, viz., HDFC Bank, ICICI Bank, Times of money, Bill Junction, UTI Bank, Bank of Punjab,Citi Bank, Corporation Bank, Federal Bank and Billdesk.

Grievance Redressal Machinery:

A machinery for redressal of policyholders grievances exist in all the offices of the Corporation. These are headed by designated Officers who are available at their respective Offices every Monday between 2.30 pm and 4.30 pm. except holidays. Policyholder can approach these officers to get their grievances redressed.

The Designated Officers at the various offices of the Corporation are : At Branch Office --- Sr./Branch Manager At Divisional Office --- Marketing Manager At Zonal Office --- Regional Manager (Mktg) At Central Office --- Executive Director (Mktg/IO/CRM)

Citizens Charter:

Citizens' Charter was presented to the Nation in November, 1997. In the Charter the bench marks were prescribed for 30 servicing areas.

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CLASSIFICATION OF THE LIC POLICY HOLDERS The policy holders of LIC are classified in order to Response towards acquisition of policies on the basis of AGE GENDER QUALIFICATION INCOME OCCUPATION In addition to the abov classification, the preferences of the policy holders towards acquisition of plicies are the following1) Coverage under the Personal Life Risk 2) Coverage under the risk of Family members. 3) Coverage under the risk of Lender. 4) As An investment 5) Coverage of the Sons Daughters Education/ Marriage 6) Coverage of the Income short fall during ageing 7) Reduction of tax burden 8) Coverage of the health needs. The enlisted factors were ranked by the 50 respondents, which were examined through the weighted average methodology and the following factors considered by the policyholders according to their preferences during the acquisition of policies.

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G.B.A.M.S Mirzapur

S. NO

FACTOR TOWARDS ACQUISITION

WEIGHTED AVERAGE 39.611 30.1944 30.1667 30.0833

RANK

1234-

Coverage under the Personal Life Risk As An investment Reduction of tax burden Coverage under the risk of Family members Coverage of the Sons Daughters Education/ Marriage Coverage of the Income short fall during ageing Coverage of the health needs. Coverage under the risk of Lender

1 2 3 4

5-

21.9444

6-

18.2222

78-

16.3611 14.6667

7 8

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G.B.A.M.S Mirzapur

AGE WISE CLASSIFICATION

AGE CLASSIFICATION LESS THAN 20 YRS 21-40 YRS 41-60 YRS ABOVE 60 YRS

PERCENT 2.5 60.2 34.3 3

LESS THAN 20 YRS 21-40 YRS 41-60 YRS ABOVE 60 YRS

Interpretation:- It is seem that age group 21-40 yrs purchase more LIC policy and age below 20 yrs purchase less LIC polic

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GENDER WISE CLASSIFICATION

GENDER MALE FEMALE

PERCENT 53.2 46.8

MALE

FEMALE

Interpretation:- It is seem that Male purchase more LIC policy as comapred to Female.

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G.B.A.M.S Mirzapur

QUALIFICATION WISE CLASSIFICATION QUALIFICATION LESS THAN HSC UG PG OTHERS PERCENT 2 27.9 61.7 8.5

LESS THAN HSC

UG

PG

OTHERS

Interpretation:- It is seem that Post Garduate purchase more LIC policy as compared to others qualification holders.

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G.B.A.M.S Mirzapur

INCOME WISE CLASSIFICATION SALARY LESS THAN 1 ALKH I LAKH-2 LAKH 2 LAKH-3 LAKH 3 LAKH-4 LAKH 4 LAKH-5 LAKH 5 LAKH PERCENT 28.4 28.4 29.4 7 4 3

LESS THAN 1 ALKH I LAKH-2 LAKH 2 LAKH-3 LAKH 3 LAKH-4 LAKH 4 LAKH-5 LAKH 5 LAKH

Interpretation:- It is seem that Income above 2 lakh per annum purchase more LIC policy as compared to others Income group.

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G.B.A.M.S Mirzapur

OCCUPATIONT WISE CLASSIFICATION OCCUPATION ENGINEER MEDICAL PRACTIONER CHARTED ACCOUNTANT CHARTED SURVEY LAWYER BUSINESS INDUSTRIALIST SALARIED RETIRED PERCENT 3 5 3.5 1.5 1.5 15.9 1.5 63.7 4.5

ENGINEER MEDICAL PRACTIONER CHARTED ACCOUNTANT CHARTED SURVEY LAWYER BUSINESS INDUSTRIALIST SALARIED RETIRED

Interpretation:- It is seem that Salaried people purchase more LIC policy as compared to others.

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ANALYSIS OF RESPONSE OF RESPONDENTS

Do you know about Life Insurance?

ANSWER YES NO PEOPLE 48 2

60

50

40

30

PEOPLE

20

10

0 YES NO

Interpretation:- It is seem that 48 PEOPLE say YES and 2 say NO out of 50 PEOPLE

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G.B.A.M.S Mirzapur

 What is the purpose of Life Insurance?

ANSWER LIFE RISK COVER TAX BENEFIT SAVING ALL PEOPLE 38 7 3 2

40 35 30 25 20 15 10 5 0 LIFE RISK COVER TAX BENEFIT SAVING ALL PEOPLE

Interpretation:- It is seem that 38 PEOPLE say LIFE RISK COVER is the main purpose of Life Insurance out of 50 PEOPLE.

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 Which company do you prefer most?

ANSWER LIC ICICI HDFC PEOPLE 42 5 3

45 40 35 30 25 20 15 10 5 0 LIC ICICI HDFC

Interpretation:- It is seem that 42 PEOPLE say LIC plan they prefer most out of 50 PEOPLE Response.

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 You like that company because of?

ANSWER SERVICES POLICY FEATURES PEOPLE 25 25

30

25

20

15

10

0 SERVICES POLICY FEATURES

Interpretation:- It is seem that 25 PEOPLE say due to LIC SERVICES they prefer most LIC and other 25 say Due to POLICY FEATURES they prefer most LIC out of 50 PEOPLE.

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 Have you Purchase any policy of Life Insurance Company?

ANSWER YES NO PEOPLE 47 3

50 45 40 35 30 25 20 15 10 5 0 YES NO PEOPLE

Interpretation:- It is seem that 47 PEOPLE say YES (means they have purchased LIC policy) and 3 PEOPLE say NO out of 50 PEOPLE.

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G.B.A.M.S Mirzapur

 Which plan mostly preffered by People Age above 60 yrs.?

ANSWER HEALTH PLAN WEALTH PLAN PEOPLE 48 2

60

50

40

30

PEOPLE

20

10

0 HEALTH PLAN WEALTH PLAN

Interpretation:- It is seem that 48 PEOPLE says above 60 years people prefer mostly HEALTH PLAN and 2 people says WEALTH PLAN out of 50 PEOPLE.

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 Are you satisfied with the service of that LIC?

ANSWER YES NO PEOPLE 46 4

50 45 40 35 30 25 20 15 10 5 0 YES NO PEOPLE

Interpretation:- It is seem that 46 PEOPLE says YES they are satisfied with LIC service out of 50 PEOPLE.

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 According to the 50 collected responses, the personal life risk cover as an investment and reduction of tax burden are given as 1st, 2nd and 3rd ranks by the policyholders towards the acquisition of policies. Among the factors that are responsible for acquisition of policy, the cover for income short fall during old age, cover for for health needs and cover for the risk of lender are ranked as 6th , 7th, and 8th by the policy holders with least priorities. This study reveals that no significant differences among the various age groups of policy holders towards the acquisition of the policies viz personal life risk cover, cover the risk of lender, incomes short fall durng the ageing and reduction of tax burden due to 30 policy holders are falling between two different age groups viz 21yrs- 40 yrs and 41 yrs-60yrs. The personal life risk cover is a factor with in significant differences among the age, qualification and occupation of the policy holders towards acquiring life insurance policies. The life risk covers for the family members is insignificantly different among the policy holders irrespective of groups viz sex, qualification and

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G.B.A.M.S Mirzapur

occupation due to 42 male policy holders, 45 policy holders from both PG & UG. The cover through health needs I different from one group to another under the classification of age and sex towards the acquisition of policies. The policyholders under the age groups of 41 yrs-60 yrs and above 60 yrs warrant health cover rather than the other age groups.

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G.B.A.M.S Mirzapur

 To overcome the competitive pressure from the private entrants, LIC should introduce effective products through structured segmentation, to grab the intrest of existing policy holders. LIC should promote more life insurance products for lower income brackets in which the prospects are aspiring for life risk coverage, which could be carried out through 810 NGOs. LIC should lauch more close ended schemes rather than open ended schemes. LIC along with the public sector banks should create awareness among people on risk coverage of the lenders.

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G.B.A.M.S Mirzapur

 It is the order of the day for LIC of india to introduce novelty schemes to the tune of preferences not only on traditional but also modern products of insurance , which will facilitate it to becomes the No.1 insurance company by marlet share and attract more prospects in india. According to survey I conducted for my RESERACH , I have analyzed that awareness among the people for LIC is average i.e. 78 %. Of which only 9 % are well aware and 69 % are less aware i.e. Have less knowledge of the company and its products. I have also concluded that total awareness among the must be improved , so that they could invest their money in avenues of their choice. The insurance consultants have to play a great role for the purpose . They must be directed to create total awareness of the products among the people , as most of the people are not well awarded of the offers. I have also concluded that most of the people are awarded of the traditional plans only and bit hesitant , investing in risky avenues. I have also found that most of the people take LIC policy for tax advantage. Sustaining and improving once existence in such a brutal and fierce competition is extremely important.

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MAGAZINE AND JOURNALS

Raman N and Gayatri C (2004) A study on customers awareness towards new insurance companies Indian Journal of Marketing.vol. 34. pp 6-8 Sharma Ravi kumar (2005), Insurance perspective in Eastern U.P: An Empirical study, Indian journal of marketing, pp 14-20 Private player eating the Market share of LIC- press release Press Trust Of India, Fe, 6,2009 Kotler, Philip and Kevin Lane Keller (2006) , Marketing Management, Pearson,12th Ed,Prentice Hall Publishers, Singapore

WEBSITES REFERED
www.insurancezone.com www.licindia.com www.ssrn.com www.bimabazzar.com

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Date

:-

E-mail id:- Mobile NO.:-. Fax NO.:-.

Individual Name :- Companys Name :-. Sir/Madam,

I am a Management student representing Life Insurance Company Ltd. I am undertaking a market research to access the Preferences of LIC Policy Holders towards acquisition of policies in Mirzapur. I will be obliged if you spare few minutes to fill up this questionnaire. I assure you that the information imparted by you will be kept confidential. 1) Do you know about Life Insurance? [ ] YES [ ] NO

2) Do you know the purpose of Life Insurance? [ ] YES [ ] NO

3) What is the purpose of Life Insurance? [ ] LIFE RISK COVER [ ] SAVING [ [ ] TAX BENEFIT ] ALL

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G.B.A.M.S Mirzapur

4) Do you know about Life Insurance Companies? [ ] YES [ ] NO

5) Do you know about Other Insurance Company? [ ] YES [ ] NO

6) Which company do you prefer most? [ ] LIC [ ] HDFC [ [ ] ICICI PRUDENTIAL ] OTHERS

7) You like that company because of? [ ] SERVICE [ ] POLICY FEATURES

8) Have you Purchase any policy of Life Insurance Company? [ ] YES [ ] NO

9) Which plan mostly prefered by People Age above 60 yrs.? [ ] HEALTH PLAN 10) [ ] WEALTH PLAN

Are you satisfied with the service of that LIC? [ ] NO

[ ] YES 11)

Are you going to purchase next LIC policy? [ ] NO

[ ] YES 12)

Why you will prefer LIC most ?

Any Suggestions _____________________________________________________________ _____________________________________________________________

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G.B.A.M.S Mirzapur

77

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