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POTENTIAL OF LIFE INSURANCE INDUSTRY

IN INDIA
OBJECTIVES
A big boom has been witnessed in Insurance Industry in recent times.A
large number of new layers ha!e entered the mar"et and are trying to
gain mar"et share in this raidly imro!ing mar"et.The study deals
with reliance in focus and the !arious segments that it caters to.The
study then goes to e!aluate and analyse the findings so as to resent a
clear icture of trends in the Insurance Sector.
#ain Ob$ecti!es of the research is to ha!e an analysis of %ife Insurance
Industry in India and to show that how it is referred by most of the
eole in recent times. #ain Ob$ecti!es are as follows&
History of Indian Insurance Industry
Need and Importance of Insurance
Types of Insurance
Major Players in Indian Insurance Industry
Case study on LIC
Products offered by LIC
Comparative Study on LIC & ICICI policies
To kno t!e most preferred policy
I'T(O)*CTIO'
I'S*(A'CE
Insurance is one of life"s necessities and probably t!e least#understood financial product$
Insurance reimburses people for covered losses in t!e event of an unfortunate occurrence
suc! as an illness% accident% or deat!$ &t t!e same time% it can encoura'e prevention and
safety measures% provide investment capital% lend money% and !elp to reduce an(iety for
society at lar'e$ &s a mec!anism a'ainst loss of income and a means of safe'uardin'
assets% many Indians !ave insurance in one form or anot!er$ T!ese covera'es may include
public covera'e% suc! as disability insurance% a !ealt! care policy from an employer% or
personal insurance to protect property suc! as !omes% computers and cars$
)nderstandin' life insurance becomes easier !en one reali*es t!at insurance as a
concept developed to transfer a person"s risks to anot!er party% t!ereby protectin' t!e
insured person in t!e event of any calamity$
)ntil somet!in' !appens% suc! as a car accident% an illness% or t!e deat! of a loved one%
payin' for insurance may seem like buyin' somet!in' you"ll never use$ +ut even if you
never submit a claim% insurance is an investment in your future% as important as pensions
,
and personal investments$ Indeed% many financial planners ar'ue t!at you s!ould !ave an
ade-uate insurance safety net in place before considerin' investment strate'ies$
.

T+E +ISTO(, O- I')IA' I'S*(A'CE I')*ST(,
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 fre and food and loss of life and were willing
to make some sort of sacrifce 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.
.... Insurance& A bac"ground
Historians believe t!at insurance first developed in summer and +abylonia$ T!e
merc!ants and traders of t!ese societies transferred and pooled t!eir money to protect
t!emselves and pirates$
In t!e /0
t!
Century +C% +abylonian kin' Samurai developed a code of la% knon as t!e
code of specific rules 'overnin' t!e practices of early risk s!arin' activities$ Insurance
also developed durin' t!e /122s in t!e Nort! &merican colonies$ In /1.2 +enjamin
3rank contributed for t!e Insurance of Houses from Loss by fire$
4arly development of insurance as unor'ani*ed$ It as mainly insurin' commercial
risks$ T!e insurance in!uman life started in 4n'land in /50.&6 for term &ssurance for
/, mont!s% !ic! as issued for t!e first time$ In /125 amicable society started payin'
assurance on deat! a tern carried on unto /151$ In /17, e-uitable society as t!e first co$
to start c!ar'in' premium on scientific basis$
In India t!e references to insurance !istory relates to t!e 4ast India Co$ !en some
policies !ere issued on t!e life of +ruisers in forei'n currency$
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In /012# +ombay Mutual Insurance Limited
In /018# 9riental :ovt$ Security life &ssurance Co Limited
In /0;7 < +art Insurance Co$ and /0;1 empire of India$
In /;25 < no of insurance company life Hindustan co#op )nited India% +ombay Life
National < &sian ere set up durin' t!e above period$
&fter ,
nd
orld ar several ne companies ere establis!ed% most important bein' Ne
India &ssurance Co$ ot!ers ere =upiter% Lame% &nd!ra% Industrial Metropolitan and Ne
&siatic$
T!e 'overnment started to e(ercise control it! t!e passin' of insurance act /;/, t!ere
as a marked increase in t!e volume of insurance business and ot!er form of +usiness$
More companies ere floated$ >it! a vie to !ave a closer atc! on t!e matter of
investment of funds and e(penditure and 'eneral mana'ement of business 'ovt$ enacted
t!e insurance act in /;.0 and also t!e 6ep?t of Insurance under t!e aut!ority of t!e
superintendent of Insurance as establis!ed$ T!is act as furt!er amended in /;52$
+efore nationali*ation t!ere ere ;1 operatin' centers almost all urban$ T!ere ere ,85
different insurance companies t!en$
Nationali*ation off t!e Insurance business in /; =an /;57$ LIC act of /;57 as passed by
t!e parliament and received presidential assent on /0
t!
=une /;57 and act come into force
on /
st
=uly /;57#LIC came into e(istence on t!e /
st
September /;57$
%ife Insurance
In /0/0 t!e +ritis! establis!ed t!e first insurance company in India in Calcutta%T!e
9riental Life Insurance Company$3irst attempts at re'ulation of t!e industry ere made
it! t!e introduction of Indian Life &ssurance Companies &ct in /;/,$& number of
amendments to t!is &ct ere made until t!e Insurance &ct as dran up in
/;.0$Noteort!y features in t!e &ct ere t!e poer 'iven to t!e :overnment to collect
statistical information about t!e insured and t!e !i'! level of protection t!e &ct 'ave to
t!e Public t!rou'! re'ulation and control$
T!e enactment of t!e Indian @e'ulatory and 6evelopment &ut!ority &ct% /;;; AI@6&B
!as effected vast c!an'es in t!e !ole scenario of Indian insurance sector$ It 'ave t!e
customers a c!ance to 'et a better deal from t!e insurers$
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It can be seen t!at in most of t!e countries% in vie of t!e lar'e sum of public funds
commanded by t!em% insurance industry as kept as a state monopoly$ &lt!ou'! t!e
monopoly !as lent financial stren't! and oners!ip of t!e :overnment% t!ey failed in
t!e area of customer service$ &s it enters t!e ,/
st
century% t!e insurance industry finds
itself offerin' customi*ed products to increasin'ly diverse markets t!rou'! a ider
ran'e of distribution c!annels$.
Some of the imortant milestones in the life insurance business in India
are&
./.0 C T!e Indian Life &ssurance Companies &ct enacted as t!e first statue to re'ulate
t!e life insurance business$
./01 C T!e Indian Insurance Companies &ct enacted to enable t!e 'overnment to collect
statistical information abou t bot! life nad non#life insurance businesses$
./21 C 4arlier le'islation consolidated and amended by t!e Insurance &ct it! t!e
objective of protectin' t!e interests of t!e insurin' public$
./34 CT!e market contained /58 Indian and /7 forei'n life insurance companies$
5+AT IS I'S*(A'CE66
Insurance is a protection a'ainst financial loss arisin' on t!e !appenin' of une(pected
eventDaccidents$Insurer collects premium to provide for t!is protection from various
people.
Insurance is a le'al contract t!at protects people from t!e financial costs t!at result from
Loss of life% loss of !ealt!% lasuits% or property dama'e$ Insurance provides a means for
individuals and societies to cope it! some of t!e risks faced in everyday life$ People
purc!ase contracts of insurance% called policies% from a variety of insurance
or'ani*ations$
Insurance is conceived as a met!od of s!arin' of t!ese losses% embodyin' t!e principle of
co#operation e(isted in t!e early civili*ation$ T!ere is evidence t!at durin' t!e &ryan
civili*ations% loss of profits in industry as insured by t!e villa'e co#operative in India$
&lmost everyone livin' in modern% industriali*ed countries buys insurance% for instance%
las in most states re-uire people !o on a car to buy insurance before drivin' it on
public roads$ Lenders re-uire anyone !o finances t!e purc!ase of a !ome or car it!
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borroed money to insure t!at property$ +usiness partners take out life insurance on eac!
ot!er to make sure t!at business ill succeed even if one of t!e partners die$
I'S*(A'CE TE(#I'O%O7,
8olicy
Contract beteen an insurer and an insured
8rooser
Person !o si'ns t!e contract on be!alf of life insured
%ife Insured
Person on !om t!e contract !as been taken out
'ominee
Person !o is defined as t!e beneficiary of t!e policy
Insurance 8lan
Specific type of policy t!at a customer ants to take from an insurer
8olicyholder
T!e proposer in t!e contract
8remium
T!e consideration paid by t!e proposer for t!e contract
Sum Assured
+enefit for !ic! t!e policy !as been taken out
)eath Benefit
Sum &ssured on deat!
1
Term of 8olicy
Len't! of Insurance
)ue )ate
6ate on !ic! reneal premium is to be paid
7race 8eriod
Period beyond 'race period t!at a reneal premium can be paid it!out any financial
c!ar'es.
..0. 'eed of Insurance
Since be'innin' of t!e orld% man !as alays felt insecurity for !is assets and even life$
T!ere is uncertainty in every aspect of life$ It is an old sayin' t!at only deat! and ta( are
certain% !oever even t!e time of deat! and rate jo' ta( is not certain$ )ncertainties
e(pose our assets to losses and conse-uently endless problems$ & fire in a factory may
burn everyt!in' and oner?s only source of earnin' it! investment of !u'e capital is
finis!ed but insurance ill come to one?s rescue if insurance is taken% all t!e operations
can be started a'ain$ Insurance does not only provide reimbursement at t!e time of loss
but at t!e time of takin' t!e policy% insurer provides su''estive measures to reduce t!e
effect of !a*ards and losses$ 4art!-uake% flood% riot% strike% t!eft% e(plosion% fire% etc$ are
some of t!e common dan'ers to our assets$ Moreover life insurance besides providin'
financial assistance to t!e insured% t!ese policies provide investment opportunities and
even pension plans at market interest rate$
..2 Imortance of Insurance
Insurance benefit society by alloin' individuals to s!are t!e risks faced by many people$
+ut it also serves many ot!er important economic and societal functions$ +ecause
insurance is available and affordable% banks can make loans it! t!e assurance t!at t!e
loan?s collateral is covered a'ainst dama'e$ T!is increased availability of credit !elps
people buy !omes and cars$ Insurance also provides t!e capital t!at communities need to
0
-uickly rebuild and recover economically from natural disasters% suc! as floods or
eart!-uakes$
Insurance itself !as become a si'nificant economic force in most industriali*ed countries$
4mployers buy insurance to cover t!eir employees a'ainst ork related injuries and
!ealt! problems$ +usinessmen also insure t!eir property% includin' tec!nolo'y used in
production a'ainst dama'e and t!eft$ +ecause it makes business operations saferE
insurance encoura'es businesses to make economic transactions% !ic! benefit t!e
economies of countries$
Insurance companies perform a type of monetary redistribution t!ey collect premium and
eventually redistribute t!at money as payments$ 6ependin' on t!e type of insurance%
redistribution can take place any!ere from a fe mont!s to many decades$ +ecause of
t!is delay beteen collections and payin' out funds% insurance companies invest t!eir
funds to brin' in e(tra revenues$ Suc! investments !elp businesses and 'overnment
finance t!eir operations% and fe mont!s from t!ose investments deport t!e operations of
insurance companies$ >it! t!ese investments earnin's% insurance companies can keep
rates muc! loer t!an ould ot!erise be possible$
..9. 8ri!ati:ation of Insurance
T!e Indian insurance !as finally opened up$ T!e first move toards liberali*ation came
it! t!e &mp!ora Committee @eport in /;;. !ic! recommended t!e privati*ation of
insurance$ Indian stands to 'ain itty t!e folloin' major advanta'esC
# +etter products it! more reasonable and affordable pricin'
# Fuick servicin'
# Increased savin' rate
# Lon'#term funds for infrastructure development ill be available to t!e country
# Lar'e inflo of forei'n capital
It is debated t!at t!e insurance business does not produce profit in t!e first five year$
Cross subsidi*ation is a feature of t!e Indian Market$ 4vent t!e fire portfolio !ic! is
considered profitable% cross subsidi*es t!e ot!er department$ Tariff reductions are likely
to reduce furt!er$ Insurer ill !ave to institute proper claims mana'ement process in
order to e(tract proficiencies$
;
T!e 'ovt$ is soon to present t!e ne model for ta(in' life insurance companies at
internationally competitive rates$ Ne entrants ould be ell advised to look a!ead to
t!e sta'e !ere brand stren't! ill be a competitive advanta'e and sketc! t!eir alliances
accordin'ly$
..3. Oortunities in Insurance
In Indian market% t!e opportunity for insurance companies is !u'e$ T!e efforts of
'overnment companies !ave lacked sincerity% as t!ere is lar'e untapped market even after
85 years of nationali*ation$ &ccordin' to sources% .2 cores people of India can afford
insurance !oever only 0 cores of t!em !ave taken any insurance$ Life insurance
premium collected in a year is only ,G of 'ross domestic product in India it! t!at of
/,G in )S&$
Total non#life insurance premium is a mere 2$7G of :6P !ic! is almost ne'li'ible$ 9n
t!e basis of t!is it can be sold t!at t!ere is !u'e scope for insurance in India$ T!ere is still
muc! to ac!ieve and a bi' market to e(plore$
T!e latent demand foreseen in Indian market and t!e success of liberali*ed market in
emer'ent economies make t!is a 'reat opportunity$ To avail t!is may international players
includin' t!e orld leaders !ave set up t!eir business in India in last to years$
Prudential life insurance as first company to tie up it! an Indian company i$e$ is ICICI
and 'ets a license$ 4ac! company re-uires /22 crores of capital to start t!eir business%
!ic! is a bi' amount to ensure t!e solvency of company at all times$
..4.Tyes of Insurance
.. %ife Insurance
Life insurance is a contract for payment of a sum of money to t!e person assured on t!e
!appenin' of t!e event insured a'ainst$ )sually t!e contract provides for t!e payment of
an amount on t!e date of maturity or at specified intervals or at unfortunate deat!$ T!e
contract also provides for t!e payment of premium periodically to t!e corporation by t!e
assured$
0. 7eneral Insurance
/2
:eneral Insurance includes many areas of insurance like marine% motor% en''$ Healt!% fire
etc$ t!e contract provides for t!e payment of an amount on t!e !appenin' of some
contin'ency$ T!ese types of contracts are annual in nature$
//

(ESEA(C+ #ET+O)O%O7,
T!is deals it! t!e researc! met!odolo'y t!at !as been folloed$ @esearc! met!odolo'y
can be defined as t!e step by step procedure t!at is desi'ned and folloed for t!e purpose
of doin' a researc! ork$ 9t!er main purpose is to desi'n t!e ork in suc! a ay t!at all
t!e areas to be covered in t!e researc! ork fall in a correct manner and in t!e purvie of
t!e researc! ork and not!in' is left out t!e met!odolo'y is develop din suc! a ay t!at
t!e flo of t!e ork is continuous and desired results are obtained$
0... SI7'I-ICA'CE ; (ATIO'A%E O- T+E (ESEA(C+
T!is project provided me an opportunity to kno t!e insurance sector and moreover !elp
me for enterin' into an imsurance sector$
T!e main rationale be!ind t!e study undertaken is to provide information about
customer?s preferences and brand loyalty$To provide t!e information as to !at are t!e
reasons t!at t!e customer looks upon durin' a purc!ase of an insurance policy and !at
is t!e ima'e of private insurance companies in t!eir mind t!rou'! interaction it! t!em$
)ATA CO%%ECTIO' #ET+O)
*ni!erse )efined& Here t!e universe of t!e study is all t!e salaried people of different
a'e 'roup in India$
LocaleC Here t!e locale of t!e study is all t!e people orkin' and livin' in 6el!i & NC@$
It is restricted to 6el!i only because of time & resource constraints$
Samle Si:e& T!e si*e of t!e sample as around 72 people considerin' t!e time
constraint$
)ata Collection& 6ata !as been collected t!rou'! bot! primary and secondary approac!$
8rimary )ata is t!e data !ic! is collected form direct interaction it! t!e tar'et
sources and !ic! is ra in !and and is used for t!e first time$Harious sources are used
like
/,
Personal Intervie
Telep!one Intervie
Fuestionnaires
Secondary )ata is t!e data !ic! !as been collected from different sources earlier i$e$
t!rou'! ma'a*ines% journals and internet and are used for t!e purpose of
projectDsurvey$Secondary data !as been collected t!rou'! various sources suc! asC
Internet
Nespapers
@eports
%I#ITATIO'S
T!e customers are sometimes biased toards t!e product and moreover t!e
customer lacks t!e information about insurance$So t!e accurate conclusions may
not be dran on t!e basis of information collected$
Some of t!e customers due to time constraints and availability of documents it!
t!em because of data as filled in a !urry !ic! meant t!e data provided mi'!t
not be /22G true$
T!e number of respondents ere limited to 72 because of time constraints &
assi'nments$
/.
#AJO( 8%A,E(S O- %I-E I'S*(A'CE I' I')IA
/$ Life Insurance Corporation of India
,$ ICICI prudential Life Insurance Co Ltd$
.$ H63C Standard Life Insurance Co Ltd$
8$ Ma( Ne Iork Life Insurance Co Ltd$
5$ +irla Sun Life Insurance Co Ltd$
7$ 9m Jotak Ma!indra Life Insurance Co Ltd$
1$ @eliance Life Insurance Co Ltd$
0$ &llian* +ajaj Life Insurance Co Ltd$
;$ In' Hyasa Life Insurance Co Ltd$
/2$ S+I Life Insurance Co Ltd$
//$ Metlife Insurance Co Ltd$
/,$ Sa!ara Life Insurance Co Ltd$
/.$ &viva Life Insurance Co Ltd$
/8$ T&T& &i' life Insurance Co Ltd$
/5$ +!arti &K& Life Insurance Co Ltd$
/7$ S!riram Life Insurance Co Ltd$
/8

CASE ST*), O' %IC
Comany 8rofileC# It is t!e sin'le lar'est Life Insurance Player of India !avin' an life
fund corpus of @s$ /%07%2,8 crore A&ppro($B$ It is t!e only player in t!e public sector life
insurance se'ment$ If e add up t!e asset base of all ot!er private players !o !ave
recently ventured into India it! local alliance after t!e liberali*ation of t!e Insurance
sector in t!e /;;;% t!en also it comes no!ere near to LIC$ &nd moreover in t!e near
future don t!e line /2 years % it can be predicted it! /22G certainty t!at no ot!er
company in t!e life insurance se'ment ould topple over LIC as per as asset base is
concerned$
No$ of &'entsC# 7%5/%222 a'ents$
%ife Insurance in India
Life insurance in India made its debut ell over /22 years a'o$
In our country% !ic! is one of t!e most populated in t!e orld% t!e prominence of
insurance is not as idely understood% as it ou'!t to be$ >!at follos is an attempt to
ac-uaint readers it! some of t!e concepts of life insurance% it! special reference
to LIC$It s!ould% !oever% be clearly understood t!at t!e folloin' content is by no
means an e(!austive description of t!e terms and conditions of an LIC policy or its
benefits or privile'es$
Life insurance is a contract t!at pled'es payment of an amount to t!e person assured Aor
!is nomineeB on t!e !appenin' of t!e event insured a'ainst$
T!e contract is valid for payment of t!e insured amount durin'C
T!e date of maturity% or
Specified dates at periodic intervals% or
)nfortunate deat!% if it occurs earlier$
&mon' ot!er t!in's% t!e contract also provides for t!e payment of premium periodically
to t!e Corporation by t!e policy!older$ Life insurance is universally acknoled'ed to be
an institution% !ic! eliminates "risk"% substitutin' certainty for uncertainty and comes to
t!e timely aid of t!e family in t!e unfortunate event of deat! of t!e breadinner$
+y and lar'e% life insurance is civilisation"s partial solution to t!e problems caused by
deat!$
/5
Life insurance% in s!ort% is concerned it! to !a*ards t!at stand across t!e life#pat! of
every personC
/$ T!at of dyin' prematurely leavin' a dependent family to fend for itself$
,$ T!at of livin' till old a'e it!out visible means of support.
OBJECTIVES O- %IC
Spread Life Insurance idely and in particular to t!e rural areas and to t!e
socially and economically backard classes it! a vie to reac!in' all insurable
persons in t!e country and providin' t!em ade-uate financial cover a'ainst deat!
at a reasonable cost$
Ma(imi*e mobili*ation of people"s savin's by makin' insurance#linked savin's
ade-uately attractive$
+ear in mind% in t!e investment of funds% t!e primary obli'ation to its
policy!olders% !ose money it !olds in trust% it!out losin' si'!t of t!e interest
of t!e community as a !oleE t!e funds to be deployed to t!e best advanta'e of
t!e investors as ell as t!e community as a !ole% keepin' in vie national
priorities and obli'ations of attractive return$
Conduct business it! utmost economy and it! t!e full reali*ation t!at t!e
moneys belon' to t!e policy!olders$
&ct as trustees of t!e insured public in t!eir individual and collective capacities$
Meet t!e various life insurance needs of t!e community t!at ould arise in t!e
c!an'in' social and economic environment$
Involve all people orkin' in t!e Corporation to t!e best of t!eir capability in
furt!erin' t!e interests of t!e insured public by providin' efficient service it!
courtesy$
Promote amon'st all a'ents and employees of t!e Corporation a sense of
participation% pride and job satisfaction t!rou'! disc!ar'e of t!eir duties it!
dedication toards ac!ievement of Corporate 9bjective$
#ission of %IC
<4(plore and en!ance t!e -uality of life of people t!rou'! financial security by
providin' products and services of aspired attributes it! competitive returns% and by
renderin' resources for economic development$L
/7
Vision
<& trans#nationally competitive financial con'lomerate of si'nificance to societies and
Pride of India$L
%ife Insurance Vs. Other Sa!ings
8rotection
Savin's t!rou'! life insurance 'uarantee full protection a'ainst risk of deat! of t!e saver$
in life insurance% on deat!% t!e full sum assured is payable Ait! bonuses !erever
applicableB !ereas in ot!er savin's sc!emes% only t!e amount saved Ait! interestB is
payable$
Aid to Thrift
Life insurance encoura'es "t!rift"$ lon' term savin' can be made in a relatively "painless"
manner because of t!e "easy instalment" facility built into t!e sc!eme Amet!od of payin'
premium eit!er mont!ly% -uarterly% !alf yearly or yearlyB$ take% for e(ample% our salary
savin' sc!eme popularly knon as sss$ t!is sc!eme provides a convenient met!od of
payin' premium eac! mont! by deduction from one"s salary$ t!e deducted premium is
remitted by t!e employer to t!e lic$ t!e salary savin' sc!eme can be introduced in an
institution or establis!ment subject to specified terms and conditions$
%i=uidity
Loans can be raised on t!e sole security of a policy !ic! !as ac-uired loan value$
besides% a life insurance policy is also 'enerally accepted as security for even a
commercial loan$
Ta> relief
Ta( relief in income ta( and ealt! ta( is available for amounts paid by ay of premium
for life insurance subject to income ta( rates in force$ assessees can avail t!emselves of
provisions in t!e la for ta( relief$ in suc! cases t!e assured in effect pays a loer
premium for !is insurance t!an !e ould !ave to pay ot!erise$
#oney when you need it
/1
& suitable insurance plan or a combination of different plans can be taken out to meet
specific needs t!at are likely to arise in future% suc! as c!ildren"s education% start#in#life or
marria'e provision or even periodical needs for cas! over a stretc! of time$ alternatively%
policy moneys can be so arran'ed to be made available at t!e time of one"s retirement
from service to be used for any specific purpose% suc! as for t!e purc!ase of a !ouse or
for ot!er investments$ subject to certain conditions% loans are 'ranted to policy!olders for
!ouse buildin' or for purc!ase of flats$
Insurance -or 5omen
Prior to nationalisation A/;57B% many private insurance companies ould offer insurance
to female lives it! some e(tra premium or on restrictive conditions$ Hoever% after
nationalisation of life insurance% t!e terms under !ic! life insurance is 'ranted to female
lives !ave been revieed from time#to#time$
&t present% omen !o ork and earn an income are treated at par it! men$ In ot!er
cases% a restrictive clause is imposed% only if t!e a'e of t!e female is up to .2 years and if
s!e does not !ave an income attractin' Income Ta($
?eyman Insurance
Jeyman insurance is taken by a business firm on t!e life of key employeeAsB to protect
t!e firm a'ainst financial losses% !ic! may occur due to t!e premature demise of t!e
Jeyman$
/0
%I-E I'S*(A'CE 8(O)*CTS&
5hole life olicy&
T!ese are lo#cost insurance plans !ere t!e sum assured is payable on t!e deat! of t!e
insured
& typical !ole life policy runs as lon' as t!e policy!older is alive$ In ot!er ords% t!e
risk is covered for t!e entire life of t!e policy!older% !ic! is !y it is knon as !ole
life policies$
T!e policy money and t!e bonus are payable only to t!e nominee of t!e beneficiary upon
t!e deat! of t!e policy!older$ T!e policy!older is not entitled to any money durin' !is or
!er on lifetime% i$e$ t!ere is no survival benefit$
>!ole life policies are fairly ri'id and infle(ible and are suitable only in a fe% very
specific cases$
>!ole Life Policy can be a 'ood initial policy to buy since its cost is very lo$ T!at is an
important consideration !en one is just startin' a career$
Endowment olicy&
)nder t!ese plans% t!e sum assured is pay#able on t!e maturity of t!e policy or in case of
deat! of t!e insured individual before maturity of t!e policy$ 4ndoment policies cover
t!e risk for a specified period at t!e end of !ic! t!e sum assured is paid back to t!e
policy!older alon' it! t!e entire bonus accumulated durin' t!e term of t!e policy$ It is
t!is feature # t!e payment of t!e endoment to t!e policy!older upon t!e completion of
t!e policy?s term #% !ic! ri'!tly accounts for t!e popularity of endoment policies$ T!e
ori'inal sum assured and t!e accumulated bonus # received back comes !andy from t!e
endoment can eit!er be used for buyin' an annuity policy to 'enerate a mont!ly
pension for t!e !ole life% or put it in any ot!er suitable investment of !is c!oice$ &s
compared to !ole life policies% t!e premium rates for endoment policies are !i'!er and
t!e bonus rates are loer$ 9n t!e plus side% t!ese polices offer an endoment #
representin' a return on !is premium payments payable to !im in !is on lifetime !en
t!e policy comes to an end$
#oney bac" olicy&
)nlike ordinary endoment insurance plans !ere t!e survival benefits are payable only
at t!e end of t!e endoment period% money back policies provide for periodic payments
/;
of partial survival benefits durin' t!e term of t!e policy% of course so lon' as t!e policy
!older is alive$
&n important feature of t!is type of policies is t!at in t!e event of deat! at any time
it!in t!e policy term% t!e deat! claim comprises full sum assured it!out deductin' any
of t!e survival benefit amounts% !ic! may !ave already been paid as money#back
components$ Similarly% t!e bonus is also calculated on t!e full sum assured
)nder money back policies premiums can be paid as per t!e insurance company?s policy$
T!ese could be -uarterly% !alf yearly or annually$ T!e premiums for t!ese policies are
payable for t!e selected term of years% or till deat! if it occurs earlier$
+y buyin' suc! policies one can receive income at re'ular intervals ot!er t!an t!e risk
cover it provides$ &lso a 'ood amount of bonus on t!e full sum assured is -uite a 'ood
bar'ain
Term olicy&
)nder t!ese plans% t!e sum assured is payable only on t!e deat! of t!e insured individual
before e(piry of t!e policy$
Term policiesE cover only t!e risk durin' t!e selected term period$ If t!e policy!older
survives t!e term% t!e risk cover comes to an end$
& Term plan is desi'ned to meet t!e needs of people !o are initially unable to pay t!e
lar'er premium re-uired for a !ole life or an endoment assurance policy% but t!ey
!ope to be able to pay for suc! a policy in t!e near future$
No surrender% loan or paid#up values are 'ranted under t!ese policies because reserves are
not accumulated$ If t!e premium is not paid it! t!e days of 'race% t!e policy ill lapse
it!out ac-uirin' a paid#up value$
Hoever% a lapsed policy may be revived durin' t!e lifetime of t!e life assured but before
t!e e(piry of t!e period of to years from t!e due date of t!e first unpaid premium on t!e
usual terms$ &ccident and D or 6isability benefits are not 'ranted on policies under t!e
Term plan$
Annuity @8ension 8lanA&
T!ese plans provide for eit!er immediate or deferred pension for life$ T!e pension
payments are made till t!e deat! of t!e annuitant Aper#son !o !as a pension planB unless
t!e policy !as provision of 'uaranteed period$
,2
An annuity is an in!estment that one ma"eB either in a single lum sum or through
installments aid o!er a certain number of yearsB in return for which one recei!e
bac" a secific sum e!ery yearB e!ery halfCyear or e!ery monthB either for life or for
a fi>ed number of years.
After the death of the annuitant or after the fi>ed annuity eriod e>ires for annuity
aymentsB the in!ested annuity fund is refundedB erhas along with a small
additionB calculated at that time. Annuities differ from all the other forms of life
insurance discussed so far in one fundamental way C an annuity does not ro!ide
any life insurance co!er butB insteadB offers a guaranteed income either for life or a
certain eriod. Tyically annuities are bought to generate income during oneDs
retired lifeB which is why they are also called ension lans. Annuity remiums and
ayments are fi>ed with reference to the duration of human life.
Joint life olicy&
=oint life policies are similar to endoment policies in as muc! as t!ese policies also
offer maturity benefits to t!e policy!olders% apart form coverin' t!e risks as all life
insurance policies$
+ut t!ese are cate'ori*ed separately as t!ese cover to lives to'et!er t!us offerin' a
uni-ue advanta'e in some casesE notable% for a married couple or for partners in a
business firm
)nder a joint life policy t!e sum assured is payable on t!e first deat! and a'ain on t!e
deat! of t!e survivor durin' t!e term of t!e policy$ Hested bonuses ould also be paid
besides t!e sum assured after t!e deat! of t!e survivor$ If one or bot! t!e lives survive to
t!e maturity date% t!e sum assured as ell as t!e vested bonuses are payable on t!e
maturity date$
T!e premiums payable cease on t!e first deat! or on t!e e(piry of t!e selected term%
!ic!ever is earlier$
&ccident benefits e-uivalent to t!e sum assured are available under t!is plan on t!e first
deat!$ Hoever% if bot! lives are covered under 6ouble &ccident +enefit A6&+B% t!e
survivin' life is covered under 6&+ until t!e end of t!e policy year% in !ic! t!e first life
dies under t!e cover of t!e policy$
T!ese benefits are available it! respect to bot! lives if
,/
+ot! lives peris! simultaneously oin' to an accident$ To avoid suc! an eventuality%
nomination is alloed under t!e policy 9@
+ot! die it!in t!e specified period as a result of t!e same accident 9@
T!e second life also dies in t!e same policy year as result of anot!er accident$ To avoid
suc! an eventuality% nomination is alloed under t!e policy$
Particularly for couples # =oint life policies provide dual#purpose income and risk
protection for bot! belon'in' to every income 'roup and class of society$
)nder a joint life plan t!ou'! t!e premium payment stops after t!e first life"s deat!%
bonuses continue to accrue on t!e basic Sum &ssured till Maturity 6ate or till t!e deat!
of t!e second life% if earlier$
7rou insurance&
:roup Insurance offers life insurance protection under 'roup policies to various 'roups
suc! as employer#employee% professionals% co#operatives% eaker sections of society etc$
It also provides insurance covera'e to people under certain approved occupations at t!e
loest possible premium cost$ +esides providin' insurance covera'e% it also offers 'roup
sc!emes to employers% !ic! provide fundin' of 'ratuity and pension liabilities of t!e
employer?s :roup insurance plans !ave lo premiums$ Suc! plans are particularly
beneficial to t!ose for !om ot!er re'ular policies are a costlier proposition$ :roup
insurance plans e(tend cover to lar'e se'ments of t!e population includin' t!ose !o
cannot afford individual insurance$ &s suc! t!e premia one need to pay is comparatively
loer and at t!e same time one can avail of insurance benefits$
T!e main features of t!e sc!emes are lo premium and simple insurability conditions$
Premiums are based upon a'e combination of members% occupation and orkin'
conditions of t!e 'roup$
& number of 'roup insurance sc!emes !ave been desi'ned for various 'roups$ T!ese
include employer#employee 'roups% associations of professionals Asuc! as doctors%
layers% c!artered accountants etc$B% and members of cooperative banks% elfare funds%
credit societies and eaker sections of society$ Creditor#6ebtor 'roups are also offered
'roup insurance sc!emes$
:roup insurance sc!emes providin' uniform cover can be 'ranted to outstandin' loans$
T!ese 'roups are Members of primary !ousin' societies !ere !ousin' loans are 'ranted
,,
by State &pe( !ousin' societies% borroers 'ranted loans by Institutional a'encies in
PublicD=oint Sectors for !ousin' purposes and borroer members of cooperative
societiesDbanks formed by employees of t!e same employers
Secial lan&
Special plans are insurance policy plans available from t!e national insurance providers
to serve t!e needs of citi*ens t!at cannot be commonly classified or se're'ated$ T!ese
special plans are desi'ned to satisfy needs ran'in' from debt#clearance in event of t!e
deat! of t!e insured to financial aid in t!e event of a medical mis!ap$
Special plans also provide financial assistance for !andicapped dependants as ell as
emer'ency sur'ery re-uired if and !en a medical condition arises$ Since special plans
are desi'ned for people it! diverse and specific needs% t!e avera'e citi*en may not
necessarily need or use t!em$ Iet% in t!e normal course of life% situations may arise !en
one may need to provide for unplanned or une(pected contin'encies and mis!aps$
,.

A CO#8A(ATIVE ST*), O- %IC A') ICICI 8(*)E'TIA% 8O%ICIES
LIC and ICICI Pru bot! provide different policies and plans dependin' upon t!e various
re-uirements of people$ 6ifferent plans are been cate'orised under seven major
cate'ories of policies$ T!en a comparative analysis is done beteen t!e plans of bot! LIC
and ICICI Prudential$ +ot! t!e company provide similar types of plan just it! t!e
difference in t!e features or premium amounts$

5hole life olicies
%IC ICICI 8rudential
>H9L4 93 LI34 PL&NS
T!e most c!eapest form of LIC policy
Premiums are payable t!rou'! out t!e life
Sum assured is payable on t!e deat! of
t!e life assured
LI34 TIM4 PL&N
Policy t!at meets your c!an'in' need
over a lifetime
Premium part is adjusted toards
morality and administrative c!ar'es and
rest is invested in plan of your c!oice$
+rin'in' t!e difference in t!e plan of LIC and ICICI Pru e can find out t!at LIC plans
are very simple to understand !ereas t!e ot!er provide plans accordin' to your t!e
c!an'in' needs of people$

,8
E')O5#E'T 8O%ICIES
%IC ICICI 8rudential
4N69>M4NT >ITH P@93ITS
T!ese are t!e policies of limited duration
payable on maturity or deat! of t!e life
assured$
T!ese plans are available it! different
option like it! or it!out profit or
double or special endoments
ICICI P@) S&H4 N P@9T4CT
&n ICICI ideal plan for t!ose !o ant
to accumulate funds on a re'ular basis
it! life cover
It is a fi(ed term policy t!at combines
savin' it! life cover$ T!e premia is paid
re'ularly durin' t!e term
9n deat! up to a'eC # basic premium
returned it!out interest
9n deat! after a'e 1C # sum assured
M.$5G compounded interest for first 8
yrs and t!en vested bonus$
>e can make out comparin' t!e plans of bot! t!e companies t!at !ile ICICI are more
concerned about savin' and are cate'orised for t!e different section of people$ LIC is
strai'!t and simple plan$
,5
#O'E, BAC?S 8O%ICIES
%IC ICICI 8(*)E'TIA%
=44H&N MIT@&
& !i'! risk lo cost plan and it! profit
plan
T!is plan provide for an additional
insurance cover% e-ual to t!e sun assured
in t!e event of policy !older deat! durin'
t!e term of policy$
=44H&N S)@+HI
Premium payable for limited periods
available it! periods of /,%/5 and /0 yrs
Money back at interval of 8 and 5 yrs as
per policy term
=44H&N S&NCH&I
Plan !avin' a provision of 'uarantee
addition at 12p$a$ per t!ousand and
loyalty addition payable on date of
maturity$
ICICI P@) C&SH +&J
&n ideal plan for every milestone of life$
It combines life coverNli-uidityNsavin's$
It provides survival benefit after every .
or 8 yrs and add#on benefit for a nominal
e(tra premium$
T!e LIC under money back policies provide various plans eac! !avin' different kinds of
features$ 9n t!e ot!er !and ICICI Pru% !ic! combines all t!e features in just one sin'le
plan$ T!e LIC plans like jeevan surb!i are suitable for !i'! income and ta( cate'ories$
TE(# I'S*(A'CE 8%A'S
,7
%IC ICICI 8(*)E'TIA%
+IM& JI@&N
& plan it! t!e provision for return of
premium paid on survivin' of t!e term
3ree term cover after maturity provided
t!e policy is in full force
Havin' an added attraction of loyalty
addition
=44H&N :@IH&
3or people desirous of obtainin' a
!ousin' loan it! policy actin' as
collateral security
It ensure repayment of loan in t!e event
of premature deat! of t!e borroer
& !i'! risk lo cost plan
&vailable as double and triple cover plans
ICICI P@) LI34 :)&@6
&n ideal lo cost policy t!at covers your
life it! uncertainties
It comes it! a c!oice of to convenient
premium payment modes#one time and
re'ular
It 'ives t!e fle(ibility of accident and
disability cover for a e(tra premium
Minimum premium payable ,822 per
annum$ It !as no maturity benefits
Comparison beteen t!e plans of bot! t!e companies? s!os t!at !ile ICICI Pru
provide more fle(ible and stable return plans t!e LIC are safer plan takin' care of family
as a !ole$ &'ain LIC provides different plan under t!is cate'ory of life insurance$
C+I%)(E' 8O%ICES
,1
%IC ICICI 8(*)E'TIA%
=44H&N +&LI&
Plan provides for a mont!ly income up to
a'e of ,/ in case of unfortunate deat! of
parents
Premium aiver benefit is available
+&L HI6I&
T!e plan takes care of family e(penses#
on sc!ool colle'e% !ealt! or just startin' a
career
Money in re'ular mont!ly instalment and
in lump sum at specific point of time$
SM&@T JI6
Plan desi'ned for critical educational
milestone include specialised course in
t!e country and abroad
T!e sum assured is paid immediately
from /22%222 to .22%222
&ll future payments are aived off
Most importantly t!e C!ild?s ill
continue to receive t!e policy benefits$
>e can make out t!at LIC provide different plans for c!ildren as compared to ICICI Pru%
!ic! 'ives only one plan for kids$ +ot! aims at providin' t!e parents aid for !i'!er
studies of t!eir c!ildren$ >!ile LIC policies are desi'ned to meet t!e different need of
family bud'et ICICI Pru are more customer tailored$
,0

CO'C%*SIO'
T!e comparative analysis beteen t!e plans of bot! t!e companies s!os t!at bot! differ
in t!eir projection and outlook !ile t!ey aim at same tar'ets and provides similar kind
of returns$
T!e LIC business is more about providin' social security and financial safety net for t!e
dependants$ It ensures t!e life of t!e people providin' life insurance product and services
of !i'! -uality and providin' resources for economic development$ T!e lo'o of t!e
company also s!os ima'e of corporation t!at cares$ T!e advanta'e of LIC over its peers
is t!at t!e sum assured comes it soverei'n 'uarantee
9n t!e ot!er !and ICICI Pru !as little different approac! toards its business$ T!ey are
more customers centric% provide -uality circle% !avin' superior risk mana'ement$ T!ey
'o for investment strate'y to offer consistent% stable returns to policy!older$ T!e ICICI
Pru !ad an entire ran'e of insurance product$ T!eir a''ressive strate'y ill certainly pay
off one step a!ead of competitors$
,;
7(A8+ A'A%,SIS

I'S*(A'CE AVAI%E)
T!is 'rap! s!os t!e number of people !o are aare and t!us availed t!e different kind
of insurance product$ T!e percenta'e of people !o avail insurance plan is full/22 G $
A'A%,SIS& #&s per today?s market situation almost all t!e people are aare of
insurance and !ave opted for some or t!e ot!er type of insurance policy
.2
-ACTO(S I#8O(TA'T 5+I%E O8TI'7 A 8O%IC,
T!e folloin' 'rap! is about factors t!at people look !ile optin' for any insurance plan$
T!e returns !ave t!e !i'!est option of ;2G and premium ba's t!e second by 05G$
0
10
20
30
40
50
60
70
80
n
o
.

o
f

p
e
o
p
l
e
Risk Cover Tax
Benefits
Returns
&savins
!i"ui#it$
&N&LISIS
/B @isk Cover as Savin's t!rou'! insurance 'uarantee financial protection a'ainst risk of
deat! of policy!older by payment of sum assured and bonus if any$
,B Ta( benefits as ta( rebate can be availed )DS 00 in majority of Plans and )DS
02CCCA/B for investment up to @s/2% 222 in pension plans$
.B @eturn &Savin's < lon' term savin's in a painless manner for future needs because of
easy instalment facilities Amont!ly% -uarterly% !alf yearly% yearlyB and attractive returns$
8B Li-uidity < investment in money back policies 'uarantee periodical payments after
every .%8or5 years% loans can be raised on policies and security for commercial or
!ousin' loans$
./
Insurance Comany awareness
T!e bar dia'ram s!os t!e aareness of people amon' various companies prevailin' in
t!e market$ T!e LIC is !i'!est it! ;5G and ICICI Pru it! 75G$
0
10
20
30
40
50
60
70
80
%0
100
n
o
.

o
f

p
e
o
p
l
e
!&C '( )otak
*a+in#ra
,llian-
.a/a/
alysis
T!e concept of insurance means LIC is c!an'in' it! time$ &lt!ou'! most
People kno about LIC but t!eir aareness about ot!er insurance companies is also
'ood$
.,
A CO#8A(ATIVE ST*), O- %IC ; ICICI 8(*)E'TIA%
8E(CE'TA7E O- 8EO8%E O8TI'7 -O( %IC A') ICICI 8(*
&N&LISIS
0.G of respondents !ave availed LIC policies only
/5G of respondents !ave availed ICICI Pru only
.G of respondents !ave availed bot! LIC and ICICI Pru s!oin' preference for products
of bot! companies
..
I'S*(A'CE CO#8A', A5A(E'ESS
00
200
400
600
800
1000
0

o
f

1
e
o
p
l
e
!&C &C&C&
&N&LISIS
;;G of respondents are aare of LIC as compared to 1/G in case of ICICI$ T!us
everyone kno about LIC and also people?s aareness about private insurance
companies% ICICI is 'ainin' momentum$
.8
B(A') %O,A%T,
9n askin' LIC and ICICI customers t!at ill t!ey try ne insurer ne(t time t!e results
are#C
00
100
200
300
400
500
600
700
800
%00
B
r
a
n
#

!
o
$
a
l
t
$
!&C &C&C&
-O( %IC
,G of LIC Customers ill 'o for anot!er insurance$ 1G may try better products of ot!er
private insurance companies$ +ut ;/G of LIC customers ill not 'o for anot!er insurers$
-O( ICICI 8(*
88G of ICICI customers ill surely 'o for better products of ot!er insurers specially LIC$
80G may try anot!er insurers$ 0G ill strict to LIC$
T!us brand loyality for LIC is muc! !i'!er t!an ICICI pru
.5
-I')I'7S A') A'A%,SIS
/$ Have you ever opted for Insurance from any CompanyO
AaB Ies # 7/G
AbB No # .;G
.7
,$ If Ies% >!ic! Company !ave you taken Insurance fromO
LIC 8,G
T&T& &I: life Insurance 1G
H63C Standard Life Insurance /,G
ICICI Pur /;G
Ma( Ne Iork Life Insurance 0G
+irla san life Insurance /2G
Met life insurance ,G
.1
.$ >!at made you select a particular Company for t!e InsuranceO
AaB 4MI # 10G
AbB +rand name # .G
AcB Procedures # ;G
AdB 3acilities # /G
AeB Policies # 1G
AfB &dvertisement # ,G
8$ >!ic! Company ould you prefer if you !ave never applied for InsuranceO
LIC 57G
.0
+irla san life Insurance 1G
H63C Standard Life Insurance /,G
ICICI Pur /1G
Ma( Ne Iork Life Insurance 0G
T&T& &I: life Insurance 5G
Met Life Insurance .G
Suggestions or Comment about Insurances
AaB &dvertisement s!ould be more on t!e advanta'es and fact rat!er t!e features$
AbB T!ere is a Ta( savin' factors !ile optin' for Insurance$
AcB Procedure s!ould be made easier for t!e normal public as it consumes a lot of time
and effort for providin' all t!e documents$
AdB Insurance is a need and not Lu(ury
.;
-I')I'7S ; S*77ESTIO'S
T!is c!apter deals it! t!e concluded aspects of t!e study carried out on P:eneral
perception about Life InsuranceQ$ T!e basic objective is for t!e study is for !ic! study
as carried out !as been fulfilled in t!e earlier c!apter% based on t!e objective intervie
sc!edule as desi'ned$ 6ata collected based on sc!edule as analy*ed and some
findin's !ave emer'ed$
#a$or -indings of the Study
+ased on t!e -uantitative analysis t!e major findin's of t!e study !ave been !i'!li'!ted
beloR$
Most of t!e people are satisfied it! t!e e(tent of t!eir life insurance cover$ T!ey are
not interested in buyin' more life insurance$
People do not consider life insurance as a 'ood savin's because of lo returns$
&s life insurance is a lon' term contract$ Ma(imum people do not !ave fait! on
private life insurance companies% t!ey still prefer LIC$
+ecause of less advertisin' not many people are aare about private life insurance
companies$
Most of t!e people do not kno about broker% corporate a'ents and banc assurance%
t!ey rely on t!eir a'ents only
T!e most preferred type of plan is money back$ T!e reason bein' availability of funds
after every five years !ic! can be used for payin' furt!er premium% t!us savin' t!e
re'ular income$
Some people !ave no idea about !at type of cover t!ey !ave$
Most of t!e people feel t!at life insurance is essential but t!ey t!ink returns are lo$
Some people !ave t!eir doubts on t!e credibility and lon' stay of private insurance
companies$
Suggestions
&dvertisin' of t!e insurance product s!ould stress on t!e need of security$
Insurance s!ould be populari*ed as t!e means of securin' future rat!er t!an savin'
ta($
Ne entrants s!ould come out it! innovative riders$
82
Policies s!ould be issued -uickly and it! less formalities
9t!er service s!ould also be improved$
NespaperDMa'a*ines and television are t!e most effective medium of advertisin'
life insurance$
Insurance a'ents s!ould be ell trained$
8/
CO'SO%I)ATE) -I')I'7 A') A'A%,SIS
&t t!e end of t!e project e !ave came out it! some of t!e conclusions !ic!
e ould like to s!are in our report are as follos %
- Life insurance corporation is t!e bi''est and t!e stron'est company in t!e
insurance sector$
- Life insurance corporation is t!e most reliable company in front of consumers$
- 4nterance of private companies !ave laid to t!e foundation of an !ealt!y
competition in t!e market$
- Private companies are tryin' to attract t!e customers by 'ivin' policies !ic!
are compratively less ri'id as compared to t!at of LIC$
- Life Insurance Corporation !as stron' !old in bot! t!e @ural and t!e urban
areas$
To include in t!e s!ortest possible manner e ould state t!at%
P Life Insurance Corporation !as been t!e trust of Indians from t!e years % but
atlast t!e one !o provides t!e best is t!e innerQ$
- T!e Life Insurance Corporation s!ould provide its customers it! more ne
sc!emes$
- T!e Life Insurance Corporation s!ould try to provide better services to its
customers$
- T!e Life Insurance Corporation !as to be more fle(ible % dynamic and
innovative in its approac!$
- T!e Icici pur s!ould try to reduce t!e c!ar'es of its policies so t!at it can
suited to t!e pockets of t!e middle income level 'roup$
- T!e Icici pur s!ould try to penetrate more into t!e rural areas$
&fter t!e collection of data from various primary sources t!ere are certain findin's !ic!
ere made$ 9n t!e basis on t!ese findin's t!e final analysis as made$ T!e findin's of
t!e project are as under
/B T!e salary of all t!e 52 respondents as divided into a slot of 52%222#,%22%222%
,%22%222#.%52%222 and .%52%222#5%22%222$ &s per t!e findin' t!e most preferred plan
8,
beteen t!e salary ran'e of 52%222#,%22%222 as Money +ack Plan$ 9ut of t!e total ,2
people in t!is ran'e% /8 said t!at t!is plan as t!e best$ In t!e salary ran'e of ,%22%222#
.%52%222$ 4ndondement plan as considered to be t!e best$ 9ut of /0 people in t!is
ran'e 1 ent for t!is plan$ 3inally in t!e salary ran'e of .%52%222#5%22%222 a'ain money
back plan as considered to be t!e best 5 out of /, persons in t!is 'roup ere in t!e
favour$
,B T!e preference as per a'e 'roup as calculated by dividin' t!e a'e into t!e 'roups of
,2#.2%.2#82%82#52 and 52#72$ In t!e a'e 'roup ,2#.2 people preferred money back plan$
In a'e 'roup .2#82 !ole life plan as preferred most$ In t!e a'e 'roup 82#52 Money
+ack Plan as a'ain considered as best and in t!is a'e 'roup 52#72 pension plan as
said to be t!e best$
.B &s per a''re'ate preference of plans are concerned /; respondent said t!at t!ey
preferred money back plan% /, said t!at t!ey like endondement plan% /2 ere in favour
of !ole life plan and ; said t!ey considered pension plan as best$
8B &s per t!e findin's of recall c!art is concerned /7 respondent said t!at t!ey can recall
t!e name of ICICI% /5 said t!at t!ey can recall t!e name of +irla% // said t!at t!ey can
recall t!e name of Tata and 0 said t!at t!ey can recall t!e name of Jotak ma!indra$
5B &s far as reason for purc!ase is concerned% /5 respondents said t!at t!ey purc!ase t!e
life policy for investment% /. said for ta( savin'% /, said for protection and /2 said for
savin'$
7B In t!e final -uestion !ic! as about aareness level of IN: HISI&% t!e response
received as not satisfactory% out of 52 respondent% ./ said t!at t!ey don?t kno about
t!e company and only /; ere aare about t!e company$
8.

(ECO##E')ATIO'; CO'C%*SIO'
T!ere are certain flas e(istin' in t!is orkin' of t!e insurance industry$ T!ere are some
of t!e recommendation e ad come up it! !ile doin' t!is project$ It ill !elp to make
insurance more important sector in today?s economy$
/B T!e need of t!e !our is to devise a compre!ensive strate'y t!at ill !elp t!e firms
face t!e c!allen'es of t!e future$ T!e financial services industry around t!e orld over is
under'oin' a major transformation$ It is very important t!at trained marketin'
professionals !o are able to communicate specific features of t!e policy s!ould sell t!e
policy$
,B 3rom our researc! e could find out t!at people are not aare about t!e policies
and features of insurance$ T!erefore LIC and ICICI are recommended to s!ed li'!t on
policies and e(plain t!e benefits% t!us increasin' t!e aareness$
.B T!e penetration of insurance in India is around ,,G$ T!is indicates t!at a vast
majority of rural population is not covered$ T!e market player needs to e(plore t!is
untapped potential t!rou'! t!eir marketin' and sales netork$
8B T!e returns of t!e policies are not properly mana'ed and never 'iven in time$ So%
t!ese must be looked at$
5B Pricin' of insurance products% as empirically available in India% s!os t!at pricin'
is not in consonance it! market realities$ Life Insurance premium is 'enerally
perceived% as bein' too !i'! !ile 'eneral insurance Aespecially motor insuranceB is
priced too lo$
7B Some insurance products% !ic! are not available in India% s!ould% be introduced
in market$ T!ere are areas for ne product developmentC Industry all risk policies%
Lar'e projects risk cover% @isk beyond a floor level% 4(tended public and product liability
cover
1B Insurance companies ill also !ad to 'et savvy in distribution$ 4n!anced
marketin' t!us ill be crucial$ &lready many companies !ave full operation capabilities
88
over a /,#!our period$ 3acilities suc! as customer service center are already into ,8#!our
mode$ T!ese ill provide services suc! as motor ve!icle recovery$ Tec!nolo'y ill also
play an important role on t!e market$
T!e lines of distinction beteen banks insurance companies and brokera'es are 'ettin'
blurred$ T!e future seems to belon' to financial supermarkets t!at ill offer a !ost of
services and products to t!e consumer$ In t!e ne(t millennium all t!ese activities ould
play a crucial role in t!e overall development and maturity of t!e insurance industry
85
CO'C%*SIO'
T!e various conclusions e !ad dran from our project areC #
T!ere !as been tremendous c!an'e in t!e insurance !istory$ &nd it! it t!ere !as been
continuous 'rot! in t!is sector bot! in Indian as ell as orld conte(t$
T!e openin' up of t!e insurance sector !as c!an'ed t!e !ole look of t!e industry$ >!ile
t!e LIC in order to face t!e competition is comin' it! ne strate'ies$ Ne players like
ICICI Pru are leadin' t!e sector due to t!eir strate'ic mana'ement and tailored made
projects$3rom our researc! also e conclude t!at t!ou'! t!e aareness and people optin'
for LIC plans are more as compare to ICICI Pru but t!e later are 'ainin' momentum in
t!e market day by day$ T!e primary reasons for buyin' an insurance policy% !et!er life
or non#life is to rotect us from !agaries of life. 5e do not invest in insurance for
returnsE rat!er e invest in it for re'rettable necessities$ T!ou'! a lar'e proportion of
policies available in t!e country provide for returns% but nobody is lookin' for returns to
t!e inflation rate$ So !at does insurance offer% per!aps peace of mind% but even t!at
takes time% due to poor claim performance
T!e demand for insurance is likely to increase it! risin' per#capita incomes% risin'
literacy rates and increase of t!e service sector% as !as been seen from t!e e(ample of
several ot!er developin' countries$ In fact% openin' up of t!e insurance sector is an
inte'ral part of t!e liberali*ation process bein' pursued by many developin' countries
Insurance is a @s$822 billion business in India and yet its spread in t!e country is
relatively t!in$ Insurance as a concept !as not been able to make !eaday in India$ T!ere
!as been a stron' fall in insurance business in recent years$ 3urt!ermore% it can be
observed t!at non#life business is not increasin' as stron'ly as life business$ 9n t!e ot!er
!and% 'rot! fluctuations !ave been relatively small it! 'rot! rates varyin' beteen
/G and 5G$ Life insurance business by contrast ac!ieved avera'e 'rot! rates of 7G%
alt!ou'! t!e actual rates ran'ed from 2G to /.G$ T!is s!os on t!e one !and t!e
increasin' si'nificance of life insurance as an instrument for old a'e provisions and on
t!e ot!er !and indicates t!e sensitivity of life insurance to c!an'es in t!e institutional and
economic environment$
So lets conduct t!is business it! utmost economy it! t!e spirit of trustees!ipE t!ereby
makin' insurance idely popular$
87
BIB%IO7(A8+,
Boo"s
Marketin' Mana'ement # by P!illip Jotler
Principles of Marketin' < by P!illip Jotler & :ary &mstron'
Market @esearc!# by San'eeta &'aral
Ma'a*inesC
Business India
Business world
I')IA TO)A,
I')IA' #A'A7E#E'T
>4+SIT4S
$licindia$com
$irdaindia$or'
$irda$'ov$in
81
E*ESTIO''AI(E .
/$ NameC
,$ 9ccupation
.$ 6o you kno about InsuranceO
Ies
No
8$ Have you ever opted for Insurance from any companyO
Ies
No
5$ If Ies%
>!ic! company !ave you taken Insurance fromO
LIC
S+I Insurance
H63C Standard Life Insurance
ICICI Pur
Ma( Ne Iork Life Insurance
+irla san life Insurance
T&T& &I: life Insurance
7$ Ho did you come to kno about InsuranceO
&dvertisement
>ord of Mout!
@eferred by your company D 3riend
1$ >!at made you select a particular company for t!e InsuranceO
4MI
+rand name
Procedures
3acilities
Policies
&dvertisement
80
0$ Ho do you like t!e Marketin' strate'y by different Insurance CompanyO
:ood
&vera'e
+ad
;$ >!at motivates you for selectin' any Company for InsuranceO
4MI
+rand name
Procedures
3acilities
Policies
/2$ &dvanta'es or Comment about Insurances
//$ >!ic! Company ould you prefer if you !ave never applied for InsuranceO
LIC
S+I Insurance
H63C Standard Life Insurance
ICICI Pur
Ma( Ne Iork Life Insurance
+irla san life Insurance
T&T& &I: life Insurance

Members On The Board Of The Corporation
Shri D.K. Mehrotra, (Current-in-Charge & CHAIRMAN, LIC )
Shri T. S. Vijayan, (Managing Director, LIC )
Shri Thomas Mathew T. (Managing Director, LIC )
Shri A.K. Dasgpta, (Managing Director, LIC )
Shri !. "opa#an, (Secretary, Department o !conomic Aair",
Mini"try o #inance, $o%t. o In&ia.)
8;
Shri D.K. Mitta#, (Secretary, Department o #inancia' Ser%ice",
Mini"try o #inance, $o%t. o In&ia.)
Shri M.V. Tan$sa#e, (Chairman & Managing Director, Centra' (an) o
In&ia )
%t. "enera# Ar&ind Mahajan '!etd.(
Shri Anp )ra$ash "arg
Shri Sanjay *ain
Shri Asho$ Singh
Shri K.S. Sampath
Shri Amardeep Singh Cheem
52