PART C

FINDINGS
AND
SUGGESTIO
NS
108

21. PRIMARY SURVEY FINDINGS

FOR LIC
1. Highest Safety offered by LIC as it is a Governmentbacked Organization.
2. Low insurance awareness among consumers.
3. Poor services of claims and low speed of claims
settlement.
4. Low speed of processing work and high paperwork.
5. No special products and services for Senior Citizens.
6. Premiums charged are still high.
7. Low control on agents. Agents do not explain all the
schemes, but only those in which they have their own
personal interests, like getting high commission on
certain policies, etc.
8. Poor agent services.
9. Low returns on the policies.
FOR ICICI PRUDENTIAL
1. Less faith among the customers. They think that the
company will soon become bankrupt.
2. Increase the network of agents. Agents are less in
number as compared to LIC.
3. Excellent agent services.
4. Premiums charged are high.
5. Create reliability and loyalty.
6. Low Safety.
109

7. Good claims procedure and high speed of claim

settlement.
8. Low insurance awareness among consumers.

22. SECONDARY DATA FINDINGS

THE BEST AND WORST OF LIC

BEST

Has achieved several objectives of nationalization.

Has spread the insurance culture fairly widely.
Mobilized large savings for development of infrastructure.
Acquired financial strength and public confidence.
LIC is No.1 among Indias top 50 most trusted service
brands, surveyed by ET-Brand Equity, 2003.
WORST

Monopoly till liberalization.

Large untapped potential.
Network is not responsive to customer needs.
Low insurance awareness among the general public.
Excessive lapse ratio of policies.
Poor marketing skills.
Lack of technical knowledge among the agents and high
turnover of agents.
Costly insurance covers and low returns.
Hierarchical
Management Structure leading to high
bureaucracy.

110

 High Government interference.

Excessive staff, low productivity, inefficient and untrained

work force.
Lack of product innovation.
High paperwork, low speed of claims procedure and
settlement.
Started focusing too late on international markets and
insurance cover for Non-Resident Indians (NRIs) and the
need for Health Insurance.
THE BEST AND WORST OF ICICI PRUDENTIAL
BEST
Excellent brand building exercise plus the brand image of

ICICI Bank which has given the company an edge over other
players in the market.
Good Agent services. Agents have the technical knowledge
of the products and they behave in a professional manner.
Product innovation has been on the forefront. Along with its
foreign partner Prudential, the company has launched
several new products in the Indian life insurance market.
Recognized the need to provide Health Insurance and started
offering Riders as option to Health Insurance cover.
High speed of processing, low paperwork.
Mandatory payment of premiums through ECS.
Fast service, high speed of claims procedures and
settlement.
Adequate staff, high productivity and efficiency.
Good returns on policies.
WORST

Low faith in the company among the general public due to

its image of being a private player.

Premium charged are higher as compared to LIC.

111

23. TEN COMMANDMENTS TO ACHIEVE THE

DESIRED SUCCESS
Be consumer-minded. Put yourself in to the consumers
shoes.
Diagnose the customer carefully and then offer a
suitable medicine.
Agreements with consumers get better results then
arguments. Remember the golden rule Customer is
always right.
The only goose that lays golden egg everyday...
forever is your customer. Hence, always respect your
customers.
The best way to increase the sales is to improve the
quality of service. Service is to sales, is like ink is to
pen. If the ink dries up, the best looking pen is useless.
Be more prompt to go to your customers in his
adversity than in his prosperity.
Remember, customer satisfaction is essential and
profitable because a satisfied customer becomes your
customer forever.
It costs six times as much to get a new customer as to
keep a customer you already have.
If you are not busy meeting customers, you are forcing
them to visit your competitors.
You have got strengths and weaknesses, so also are
possessed by your competitors. If you sell your
strengths and their weaknesses right, you will win.
Remember, kites rise against the wind and not with the
wind. Competition means a challenge, accept it bravely.

112

24. BIBLIOGRAPHY
IRDA Annual Report 2001-2002 and 2002-2003.
IRDA Journal July, August, September, October, November,

December 2003; January, February 2004.

Insurance in India, Changing Policies and Emerging
Opportunities by P.S. Palande, R.S. Shah, and M.L. Lunawat,
2003 edition.
Indian Financial System by Bharati V. Pathak, 2003 edition.
The Economic Times 2003 29 oct; 8,10,16,27 nov; 9, 17
dec.
Chartered Financial Analyst Magazine, June 2003

Websites
www.licindia.com
www.iciciprulife.com
www.allianzbajaj.co.in
www.ampsanmar.com
www.avivalife.com
www.maxnewyorklife.com
www.tata-aig.com
www.metlifeindia.com
www.omkotakmahindra.com
www.sbilife.com
www.ingvyasyalife.com
www.birlasunlife.com
www.hdfcstandardlife.com

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114

25. ANNEXURES
(i) QUESTIONNAIRE (LIC)
1. Kindly list the Life Insurance Companies you know which are operating in India.
1.
3.
5.
7.
9.

2.
4.
6.
8.
10.

2. How many Life Insurance Policies do you have?

1
24
46

More than 6

3. How do you take the decision of purchasing a new Life Insurance Policy?
Own Decision
Family Decision
Based on suggestions of Friends / Relatives
Based on advise of Agent / Broker
Based on Advertisements
Other (Specify)
4. When do you buy the Life Insurance Policy?
Yearly
On Salary/Income Increment
As need arises
On recommendation of Agent
5. How do you rate the following factors in terms of priorities while taking a Life Insurance Policy?
(Please RANK
1 for Most Important 4 for Least Important)
Risk Cover
Tax Breaks
Investment
Faith in the Company
6. Kindly give the list of Company(ies) in which you have Life Insurance Policy(ies)?
1.
3.
5.

2.
4.
6.

7. Do you compare the Policies of other companies before you purchase one?
Yes
No
8. How do you perceive LIC & ICICI Prudential on the following criteria?
(Please RATE
1 for Best 5 for Poor)
Safety

Agent
Service

Premium

Claims
Procedure

Speed of Claims
Settlement

LIC
ICICI PRU
115

9. Would you like to take a Policy from ICICI Prudential?

Yes
No
If Yes, why
10. Would you like to take a Policy from ICICI Prudential if premium is less, compared to LIC?
Yes
No
11. If you are assured of the benefits in ICICI Prudential as same as that of LIC, would you like to
take a Policy from ICICI Prudential?
Yes
No
If No, why
LIC is more reliable
Loyalty towards LIC
Unaware about ICICI Prudential
Other (Specify)
12. Please give your suggestions for LIC as well as ICICI Prudential?

PERSONAL DETAILS
Name:
Age Group
20 30

30 40

Occupation
Service
Qualification
Undergraduate
Marital Status
Single

40 50

Above 50

Business

Profession

Other (Specify)

Graduate

Post Graduate

Professional

Others

Married

No. of Dependents in the Family

None
12

34

Annual Family Income

Below Rs. 2,00,000
Rs. 2,00,000 to Rs. 2,99,999
Rs. 4,00,000 to Rs. 4,99,999
Above Rs. 5,00,000

More than 4
Rs. 3,00,000 to Rs. 3,99,999

116

(ii) QUESTIONNAIRE (ICICI PRUDENTIAL)

1. Kindly list the Life Insurance Companies you know which are operating in India.
1.
3.
5.
7.
9.

2.
4.
6.
8.
10.

2. How many Life Insurance Policies do you have?

1
24
46

More than 6

3. How do you take the decision of purchasing a new Life Insurance Policy?
Own Decision
Family Decision
Based on suggestions of Friends / Relatives
Based on advise of Agent / Broker
Based on Advertisements
Other (Specify)
4. When do you buy the Life Insurance Policy?
Yearly
On Salary/Income Increment
As need arises
On recommendation of Agent
5. How do you rate the following factors in terms of priorities while taking a Life Insurance Policy?
(Please RANK
1 for Most Important 4 for Least Important)
Risk Cover
Tax Breaks
Investment
Faith in the Company
6. Kindly give the list of Company(ies) in which you have Life Insurance Policy(ies)?
1.
3.
5.

2.
4.
6.

7. Do you compare the Policies of other companies before you purchase one?
Yes
No
8. How do you perceive LIC & ICICI Prudential on the following criteria?
(Please RATE
1 for Best 5 for Poor)
Safety

Agent
Service

Premium

Claims
Procedure

Speed of Claims
Settlement

LIC
ICICI PRU

117

9. Have you evaluated LIC and ICICI Prudential?

Yes
No
10. What motivated you to take the policy from ICICI Prudential?
Better Services
Friends/Family
Advertisement
Other (Specify)
11. Do you feel its worth to take a policy from ICICI Prudential?
Yes
No
If No, why
12. Does ICICI Prudential fulfill all the claims that it makes?
Yes
No
If No, why
13. Please give your suggestions for LIC as well as ICICI Prudential?

PERSONAL DETAILS
Name:
Age Group
20 30

30 40

Occupation
Service
Qualification
Undergraduate
Marital Status
Single

40 50

Above 50

Business

Profession

Other (Specify)

Graduate

Post Graduate

Professional

Others

Married

No. of Dependents in the Family

None
12

34

Annual Family Income

Below Rs. 2,00,000
Rs. 2,00,000 to Rs. 2,99,999
Rs. 4,00,000 to Rs. 4,99,999
Above Rs. 5,00,000

More than 4
Rs. 3,00,000 to Rs. 3,99,999

118

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