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The business of insurance is related to the protection of the ECONOMIC VALUES
OF ASSETS. Every asset has a value. The asset would have been created through
the efforts of the owner. The asset would have been created through the efforts of
the owner. The asset is valuable to the owner, because he expects to get some
benefits form it. It is a benefit because it meets some of his needs. The benefit may
be an income or in some other form. In the case of a factory or a cow, the product
generated by it is sold and income is generated. In the case of a motor car, it
provides comfort and convenience in transportation. There is no direct income.
Both are assets and provide benefits.

Every asset is expected to last for a certain period of time during which it will
provide the benefits. After that, the benefit may not be available.

Insurance is a mechanism that helps to reduce the effects of such adverse

situations. It promises to pay to the owner or beneficiary of the asset, a certain sum
if the loss occurs.
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
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 Swadeshi movement of 19051907 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.
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.
The History of Insurance in India
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 by
the central government and nationalized. 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.

Few Advantages of Life Insurance

1. It is superior to an ordinary savings plans
2. Insurance encourages and forces thrift
3. Easy settlement and protection against creditors

4. Administering the legacy for beneficiaries

5. Ready marketability and suitability for quick borrowings
6. Tax relief
List of Insurance Companies Listed in Different Years



of the
Company Limited
HDFC Standard Life Insurance Company Ltd.



Max New York Life Insurance Co. Ltd.



ICICI Prudential Life Insurance Company Ltd.



Kotak Mahindra Old Mutual Life Insurance Limited



Birla Sun Life Insurance Company Ltd.



Tata AIG Life Insurance Company Ltd.



SBI Life Insurance Company Limited .



ING Vysya Life Insurance Company Private Limited



Bajaj Allianz Life Insurance Company Limited




Metlife India Insurance Company Ltd.




Future Generali India Life Insurance Company Limited




IDBI Fortis Life Insurance Company Ltd.




Reliance General Insurance Company Limited.







TATA AIG General Insurance Company Ltd.




Bajaj Allianz General Insurance Company Limited




ICICI Lombard General Insurance Company Limited.


102 Registration

Date of Reg.


About LIC (Life Insurance Corporation)

Established on 1st September, 1956, serving India since 54 years.

Life Insurance Corporation of India (LIC) is a Government of India

enterprise largest life insurance company in India.

LIC provides life insurance services primarily to the rural masses and the
& economically backward sections of the Indian society.

Promotes money saving activities, offers attractive savings features along

with various Insurance policies.

Why LIC (Life Insurance Corporation)

Managing huge fund of approximately Rs. 80,00,000 crores.

Has large group of trained, qualified, experienced officers for finalizing any
investment decision.
Huge investments in blue chip companies and has nominee directors in
their board.
Experience and expertise of LIC as an organization both in capital &
Financial sector is unparallel.
Largest institutional investor in the equity market!
Biggest financial institute in India.
Adequate availability of funds.

How Insurance Works

The mechanism of insurance is very simple. People who are exposed to the same
risks come together and agree that, if any one of the members suffers a loss, the
others will share the loss and make good to the person who lost. All people who
send goods by shipare exposed to the same risk related to water damage, ship
sinking, piracy, etc. those owning factories are not exposed to these risks, but they
are exposed to different kinds of risks like, fire, hailstorms, earthquakes,
lightening, burglary, etc. like this,different kinds of risks can be identified and
separate groups, made including those exposed to such risks. By this method, the
risk is spred among the community and the likely big impact on one is\ reduced to
smaller manageable impacts on all.
If a Jumbo Jet with more than 350 passengers crashes, the loss would run into
several crores of rupees.No airline would be able to bear such a loss. It is unlikely
that many Jumbo Jets will crash at the sametime. If 100 airline companies flying
Jumbo Jets, come together into an insurance pool, whenever one of the jumbo jets
in the pool crashes, the loss to be borne by each airline would come down to a few
lakhs of rupees. Thus, insurance is a business sharing


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
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.
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.

Benefits of Joining LIC

Rewarding Career

A Successful Team

World Class Training

Sales & Marketing Support


Financial Strength

Attractive Remuneration

Operations of LIC

What does an LIC agent do?

Most people have their first contact with an insurance company through an
insurance sales agent. These workers help individuals, families, and businesses
select insurance policies that provide the best protection for their lives, health, and
Insurance sales agents who work exclusively for one insurance company are
referred to as captive agents. Independent insurance agents, or brokers, represent
several companies and place insurance policies for their clients with the company
that offers the best rate and coverage.
In either case, agents prepare reports, maintain records, seek out new clients, and,
in the event of a loss, help policyholders settle their insurance claims. Increasingly,
some are also offering their clients financial analysis or advice on ways the clients
can minimize risk.
Insurance sales agents, commonly referred to as producers in the insurance
industry, sell one or more types of insurance, such as property and casualty, life,
health, disability, and long-term care.
Property and casualty insurance agents sell policies that protect individuals and
businesses from financial loss resulting from automobile accidents, fire, theft,
storms, and other events that can damage property. For businesses, property and
casualty insurance can also cover injured workers compensation, product liability
claims, or medical malpractice claims.
Life insurance agents specialize in selling policies that pay beneficiaries when a
policyholder dies.
Depending on the policyholders circumstances, a cash-value policy can be
designed to provide retirement income, funds for the education of children, or
other benefits. Life insurance agents also sell annuities that promise a retirement
income. Health insurance agents sell health insurance policies that cover the costs
of medical care and loss of income due to illness or injury.
They also may sell dental insurance and short- and long-term-disability insurance
The growth of the Internet in the insurance industry is gradually altering the
relationship between agent and client. In the past, agents devoted much of their
time to marketing and selling products to new clients, a practice that is now

changing. Increasingly, clients are obtaining insurance quotes from a companys

Web site and then contacting the company directly to purchase policies.
This interaction gives the client a more active role in selecting a policy at the best
price, while reducing the amount of time agents spend actively seeking new
clients. Because insurance sales agents also obtain many new accounts through
referrals, it is important that they maintain regular contact with their clients to
ensure that the clients financial needs are being met.
Developing a satisfied clientele that will recommend an agents services to other
potential customers is a key to success in this field.
Our agents go through both generic and specific, professional programs that help
them remain well-informed and knowledgeable about the companys products in
the market.
There is a further focus on soft skills such as communication, managing long-term
relationships and selling skills, which are very relevant in a service-driven industry
like life insurance.
State of the art infrastructure training facilities coupled with an excellent faculty,
guarantee an exceptional learning environment. For agents who might be occupied
with their daily business/professional routines.
A 17-18 day training schedule covers the mandatory IRDA training requirements
and LIC product-training module. Revision session ensure that the candidates
thoroughly understand the course contents and are well prepared for the licensing
examination. Theoretical training is interspersed with practical appointment
settings with potential customers, giving agents a feel of how their business will
work from the very first day.
All through, the Development Officer and the management provide continuous
support to the advisors in achieving independence towards garnering business.


Career development is emphasized upon from the very day the agent joins the
system. Though individual meetings with his or her Development Officer, the
agent can discuss various issues related to business development and career
Absorption into the management is another career enhancement option provided at
LIC. This program helps agents build a full time career as a Development Officer
in the organization, offering great potential for managing a team of agents and
personal development.

Rewards And Recognition

LIC agents are constantly recognized and rewarded for their performance.
Numerous competitions all year round promote healthy competition amongst
agents and recognition for their efforts.
Depending on the level of business the agent achieves in a year, he or she can
become a member of various clubs such as the Corporate Club, the Chairmans
club, etc. Each of these clubs have specific performance criteria for qualification
and members of these clubs are entitled to attend seminars held at exotic
international and domestic locations each year.
Advisors can also qualify for the renowned MDRT (Million Dollar Round Table),
an exclusive international insurance advisors club.

Pitch Top 50 Brands 2014

Indian Insurance awards 2014 - Life

Insurance Company of the year

Indian Insurance Awards

2014 Underserved Market Penetration

Insurance Sales Agents - Significant Points

Despite slower-than-average growth, job opportunities should be good for college
graduates and persons with proven sales ability or success in other occupations.
Successful agents often have high earnings, but many who assume agent jobs fail
to earn enough from commissions to meet their income goals and eventually
transfer to other careers.
In addition to offering insurance policies, agents are beginning to sell more
financial products, such as mutual funds, retirement funds, NSCs, etc.

A simple step-by-step guide on how to become an LIC agent
12thstandard pass
Age 18 and above
Contact your nearest Branch Office and meet the Development Officer there.
The Branch Manager (I/C) will conduct an interview, and if found suitable, you
will be sent to training at Divisional/Agency Training Centre.
The training is for 100 hours and covers all aspects of Life Insurance Business.
After successful completion of training you will have sit for Pre-Licencing
examination conducted by the Insurance Regulatory and Development Authority
After successful completion of the examination you will awarded a Licence by the
IRDA to work as an insurance agent.
You will be appointed as an agent by the Branch Office and you will be a part of
the team under your Development Officer.
The Development Officer will impart you field training and other valuable inputs
which will help you in the market place.


You certainly can if You are outgoing and like meeting people
You are ambitious to own a business
You only want your clients to be your bosses
And you want to decide your working hours
Unlimited earning potential; A clear career path; all round support through
exclusive advertising, your own in-house consultant, and world-class training:
A comprehensive benefit package
Rewards & Recognition
They are a key source of business for the organization, and are the continuing link
with our clients. That is why; we take a lot of care in recruiting and developing our
agency force, so that we continue to set higher standards of quality in service and
salesmanship. To cater to the needs of the knowledge-oriented marketplace, we
look for graduates who are service-oriented, good communicators and enjoy
meeting new people. Prior sales experience is an added benefit.



A master communicator
A go-getter
A graduate
Some other qualities are;
You compete with fellow agents and competitive companies as an insurance agent.
Knowing how to incorporate the latest technology into your business and how to
attract new clients gives you an edge over other agents. You need to touch base
with a wide client base and offer a better service with a lower rate than your
competitors. Insurance agents work on a commission basis, so your sales determine
your salary. Agents may remain friendly and cooperative with each other, even
helping one another out at times, but they also stay competitive to gain clients and
make sales.
Being organized with the details of your product helps you sell to the customer, but
you need to maintain regular contact with your existing clients to ensure their
needs are being met, particularly when they initiate claims. Getting referrals from
an existing client helps to make more sales. As a well-organized agent, you keep
track of existing clients, stay alert for potential clients and remain aware of new
policies available for all clients.


Every reputable insurance company and manager will tell you not to sell anything
a client does not need. Insurance companies remain competitive by offering
potential customers a better policy. You may request to take a look at a prospects
current policy to determine if you can offer something better. If not, you need to be
honest enough to admit it. Your honesty and integrity will eventually bring you
more potential clients.
Leadership abilities help you to advance in the company, becoming manager of a
local office, a district or regional director or on to high levels in a corporation. You
may have leadership qualities that allow you to eventually own your independent
agency or brokerage firm.
Your training might depend on what the particular insurance company looks for in
an agent. You dont necessarily need a college education, but having sales
experience helps significantly in an insurance career. You need to take courses and
pass examinations for a license to sell insurance. Some employers prefer their
agents obtain an associate or bachelors degree in finance, economics or business.
Taking continuing education courses helps you stay informed about expanding
services, products and regulations agents need to know.
Your success depends on your ability to sell the product, which includes skill at
communicating with potential buyers. Feeling comfortable with yourself and
staying determined in your sales approach helps in selling your product. Success in
sales depends on your ability to explain information in a pleasant manner to
potential clients so they understand why they need your product. You will most
likely get turned down on your offers for insurance a majority of the time,

especially during the start of your career. One important quality is the ability to
recognize that each rejection brings you one step closer to a sale


In an insurance industry, the insurance agent possesses multi-faceted roles to
play as enlisted below
The insurance agent helps in promoting and selling of insurance
products and services to its customers.
Giving sound financial advisory services and customer support to the
Needs to deal with not only individuals but their families and
corporate businesses too.
Needs to have good relationship including good rapport with his/her
existing and prospective clients
General awareness about the markets
Promotion of insurance brands needs to have a carefully drawn
Marketing strategies needs to be drawn and re-drawn from time to
time, keeping in mind the customer preferences.
Well-planned strategies and plans needs to be chalked out.

Public-relation (PR) building exercise should be given significant

Business Development tactics needs to be pursued aggressively

A life insurance agent plays a very vital role in your financial planning and
helps you to purchase the life insurance policy. He does the following for the
o Help you to choose the Life Insurance Plan which best suits your
requirement according to your need analysis and product review. He is
the one who is informed about the product review and history and
after doing a successful need analysis of your financial requirements,
he is the one who will be able to guide and help you to select the
product that you need to purchase and why.
o Helps you to apply for the policy by fulfilling all the norms of the
insurance company.
o Liaisons between the insurer and prospective customer to fill up the
form, file the necessary documents and do the medicals, if any. Since
he is a representative of the insurer to the customer and vice versa, he
is the one who is the connection between the two and hence plays a
very vital role.

o Once the policy is enforced, the Life Insurance Agent is the one who
is responsible for ensuring that the renewal premiums are paid on
time. This is done diligently by most sincere life insurance agents as
their renewal commissions are based on the renewal premiums paid
by the customers.
o Policy servicing- address change, nominee change, fund switch,
partial withdrawal, top up, loan, etc. are usually taken care by the life
insurance agent because
They need to be in the good book of the customer so that he
would recommend him to another prospective customer or take
another policy from him
And also because they are the connection between the insurance
company and the customer and represent each in front of the
o Filing the claim
In Maturity Claim- the Life Insurance Agent needs to ensure
that the cheque reaches the customer well before time so that
the amount can be claimed on time.
In Death Claim- it is the duty of the Life Insurance Agent to
help the nominee to file the claim and ensure that the death

benefit be paid with least confusion and with maximum

In Surrender Claim- the Life Insurance Agents helps the
customer to complete the process after understanding the reason
for doing the same.
Thus, a life insurance agent plays a very important role in one's life to help
him select and apply for the life insurance policy. However there are certain
things you need to be careful about.

There are many duties which encompass the role of an agent. The first duty of an
agent is to locate either a buyer or seller of a piece of property. If the agent is
representing the seller of a property, the agent must locate prospective buyers for
the property through advertising and other means. In the alternative, if the agent
represents the buyer, that individual must help the buyer locate a particular
property and get in contact with the seller.
Another specific duty of the agent is to contact numerous parties responsible for
the possible purchase or sale of real estate. Corresponding with various parties is a
frequent duty of the agent. There are many individuals and parties who need to be
contacted throughout real estate transactions such as buyers, sellers, mortgage
companies, attorneys, utility companies and more.
The agent is also the party who is responsible for procuring real estate contracts
when an individual purchases, sells or rents a piece of property. These contracts

and accompanying documents are crucial for the completion of a real estate
transaction and the burden of completing this type of paperwork falls on the
Once a piece of property has been located, the agent is the individual who shows
the property to the client or for the client, depending upon who the agent
represents. If the agent represents the seller in a real estate transaction, the agent
will make the property accessible to the buyer and his/her agent. If the agent
represents the buyer in a transaction, the agent will accompany the buyer to view
the property and make necessary arrangements with the sellers agent in order to
do so.
An agent must also negotiate on behalf of their client during real estate
transactions. This occurs frequently with regard to price and settlement dates as
well as discussing any items that are to be included within the property purchase.
The agent for the buyer will try to obtain the lowest price and the agent for the
seller will aim for the highest price.
Lastly, the real estate agent is responsible for attending settlement with his/her
client. This is the real estate closing where all documents are signed in order to
complete the purchase and sale. The agent will explain all pertinent documents to
the client and show the client what and where to sign.