A

COMPREHENSIVE PROJECT REPORT

ON
A comparative study on customer perception towards
LIC OF INDIA
In view of competition by private companies
Submitted to

Late Smt. Shardaben Ghanshyambhai Patel Institute of Management

Studies, DHARMAJ.
IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD OF
MASTER OF BUSINESS ADMINISTRATION
In
GUJRAT TECHNOLOGICAL UNIVERSITY
UNDER THE GUIDENCE OF
FACULTY GUIDE
Ms. Shweta Patel
(Asst. Professor)
SUBMITTED BY
Nirmita B. Patel
Batch: 2012-14, Enrolment No.: 20
MBA SEMESTER IV
Late Smt. Shardaben Ghanshyambhai Patel Institute of Management Studies
DHARMAJ.
MBA PROGRAMME
Year: 2013-14
Affiliated to Gujarat Technological University
Ahmedabad

DECLARATION
I, Nirmita B. Patel, hereby declare that the report for Comprehensive Project entitled
A comparative study on customer perception towards LIC OF INDIA In view
of competition by private companies is a result of our own work and our
indebtedness to other work publications, references, if any, have been duly
acknowledged.

Place:
Date:

Nirmita B. Patel

PREFACE
2

In the fast changing scenario of the corporate world, practical knowledge of industrial
environment and business practices is becoming necessary day by day to compete
with the cut-throat competition. So with the theoretical knowledge the practical
knowledge of the industry is also important to know about the prevailing business
environment. Business school offers training for all business aspects. So from this
angle our Gujarat Technological University has granted M.B.A. program. It gives us
opportunity to relate theoretical knowledge with real market situation. It also helps to
improve our analytical skill, communication skill and knowledge.
I have prepared my project on A comparative study on customer perception
towards LIC OF INDIA In view of competition by selected private companies. This
project is totally based on secondary data as well as primary data. We gathered
information for the project by practical survey and form the internet.
In this project I have tried to analyze the market situation of the Life Insurance
Corporation of India with the comparison of private insurance companies such as
HDFC Standard Life Insurance Co. Ltd., Max New York Life Insurance Co. Ltd., and
ICICI-Prudential Life Insurance Co. Ltd. and other big players of the industry.

ACKNOWLEDGEMENT
3

The Project work is not a result of any individual but of many whom contributed
directly or indirectly towards it. Probably, I could never complete this task so well
without the guidance of many people. So, I express my deep sense of gratitude to all
the people who had helped me during this Project.
I would like to express our profound gratitude to all those who have been
instrumental in the preparation of this report which has been prepared in partial
fulfilment of subject Comprehensive Project in the Semester IV of an MBA
programme.
First I avail this opportunity to convey my sincere thanks to our Director, Dr. M. R.
Brahmchari, I would like to thank my project guide. I would like to thank my project
guide Mrs. Shveta Patel, for his continuous guidance and supervision and support
during the training period. I would also like to all the Faculty Members who have
spared sometime and helped me out to carry on my project work successfully at the
best level.
Last but not the least I am sincerely thankful to my Parents for giving me the support,
care and concerns. And I am also thankful to God for his grace on me.

Nirmita B. Patel

TABLE OF CONTENT
4

Chapter

Particulars

No.

1.

2.

Declaration
Certificate
Preface
Acknowledgement
Table of Content
Executive Summary
PART 1 GENERAL STUDY
INTRODUCTION & IDENTIFICATION OF PROBLEM
1.1
List of Life Insurers
1.2
Scope of the study
1.3
Significance of the study
1.4
Objectives of the study
1.5
Review of Literature
INSURANCE INDUSTRY IN INDIA
2.1
Historical Perspective
2.2
Insurance Regulatory Development Authority of India
2.3
Changing perception of Indian customers
2.4
Changing face of Indian insurance industry
2.5
International Comparison of Life Insurance Penetration
2.6
Market Share of Insurance Industry in Last few years
2.7
Number of Life Insurance Offices- Company wise
2.8
New Policies issued: Life Insurers
2.9
Total Life Insurance Premium
2.10
Channel-wise New business performance Individual
2.11
2.12

COMPANY PROFILE OF LIFE INSURANCE CORPORATION OF INIDA

3.1
3.2
3.3
3.4
3.5

5
6
7
8

Business
Channel-wise New business performance Group Business
Public grievances

Company Profile
Products and Services of LIC
Insurance plans: LIC Product portfolio
SWOT analysis of LIC of India
Departmental details
PART II PRIMARY STUDY
RESEARCH METHODOLOGY
4.1
Introduction
4.2
Statement of the Problem:
4.3
Formulation of Hypothesis
4.4
Data Processing and Analysis
DATA ANALYSIS AND INTERPRETATION
RESULTS AND FINDINGS
LIMITATIONS OF THE STUDY
CONCLUSION AND SUGGESTIONS
References
Appendix

Page
No.
I
II
III
IV
V
VII
1
2
4
5
5
6
6
9
10
10
11
13
17
18
19
20
21
22
24
25
28
29
32
34
37
38
42
43
44
44
44
45
67
67
69

ABSTRACT/ EXECUTIVE SUMMARY

Customer satisfaction is the true differentiator for the success of any business and is
more so in insurance where the products are perceived to be intangible. Referring to
the reviews it has been found that growth rate as well as the market share of LIC is
constantly decreasing in comparison to the private companies like HDFC Standard
Life Insurance Co. Ltd., Max New York Life Insurance Co. Ltd., ICICI-Prudential Life
Insurance Co. Ltd., Birla Sun Life Insurance Co. Ltd., etc., so to improve on the
correctional areas, the four main aspects i.e. awareness level, service quality,
problems faced and rationale behind investment has to be known.
High quality products with quality support services both in terms of international
standards and competitiveness have entered into our country. Customer satisfaction
has emerged as the key differentiator and defining attribute. The study is very much
significant because it brings out the differences in various parameters like awareness
service quality, problems faced and rationale behind investment between the
products of LIC and private sector companies and these are the main attributes
which build up the customer perception and loyalty towards a company. The study is
significant also because it will help LIC to create a positive impact on its customers
6

by working on its lacking qualities.