You are on page 1of 30

Public Relations Of LIC Of India

PEOPLE’S MONEY FOR PEOPLE’S WELRARE

SUBMITTED BY: SUBMITTED TO:


1. 8157– Rahul Jain Mr. Ameet Sao
2. 8176 – Shreekant Sah
3. 8182 - Lukuni Kalayo Marcelin

1
Public Relations Of LIC Of India

ACKNO

“NO MAN IS COMPLE


RAY OF KNOWLEDGE

The Project on “Life Insu


part of the curriculum in Three-Ye
Table of content
We have tried our best to 2
Public Relations Of LIC Of India

Corporate Policy of LIC on Public Relations....................................................................20


The Public in the case of LIC includes:.........................................................................20
Mission...........................................................................................................................21
Goals..............................................................................................................................21
Strategy..........................................................................................................................21
Action Plan.....................................................................................................................22
PRESS CONFERENCE................................................................................................23
LIC WEB SITE..............................................................................................................23
USAGE OF INFORMATION TECHNOLOGY..........................................................23
GREIVANCE REDRESSAL MACHINERY...............................................................23
RALLY ORGANISATION...........................................................................................24
Press Releases................................................................................................................24
Customer Meets.............................................................................................................24
Publicity Pavilion...........................................................................................................25
Exhibitions.....................................................................................................................25
Citizens Charter.............................................................................................................25
Free Phone Call Facility to the Policy Holders .............................................................25
Sponsorship....................................................................................................................25
Distribution of Dairies and Calendars............................................................................26
Publicity Stalls...............................................................................................................26
Public Functions.............................................................................................................26
House Magazine –Yogkshema......................................................................................26
Advertisement at Railway Station and Airport..............................................................26
Insurance Week..............................................................................................................27
Advertisement on Radio satellite channel......................................................................27
CONCLUSION..................................................................................................................28

3
Public Relations Of LIC Of India

History
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 Corporation of India was created on 1st September, 1956, with the
objective of spreading life insurance much more widely and in particular to the rural
areas with a view to reach all insurable persons in the country, providing them adequate
financial cover at a reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long term contracts
and during the currency of the policy it requires a variety of services need was felt in the
later years to expand the operations and place a branch office at each district headquarter.
Re-organization of LIC took place and large numbers of new branch offices were opened.
It worked wonders with the performance of the corporation. It may be seen that from
about 200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores
only in the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore
mark of new business. But with re-organisation happening in the early eighties, by 1985-
86 LIC had already crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 109 divisional
offices, 8 zonal offices, 992 satallite offices and the Corporate office. LIC’s Wide Area
Network covers 109 divisional offices and connects all the branches through a Metro
Area Network. LIC has tied up with some Banks and Service providers to offer on-line
premium collection facility in selected cities. LIC’s ECS and ATM premium payment
facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS,
Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai,
Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing
easy access to its policyholders, LIC has launched its SATELLITE SAMPARK offices.
The satellite offices are smaller, leaner and closer to the customer. The digitalized records
of the satellite offices will facilitate anywhere servicing and many other conveniences in
the future.

LIC continues to be the dominant life insurer even in the liberalized scenario of Indian
insurance and is moving fast on a new growth trajectory surpassing its own past records.
LIC has issued over one crore policies during the current year. It has crossed the

4
Public Relations Of LIC Of India

milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a healthy
growth rate of 16.67% over the corresponding period of the previous year.

LIC CORPORATE PROFILE

Life Insurance Corporation of India is a wholly owned undertaking of the


Government of India.

Life Insurance Corporation of India was established by an Act of Parliament on 1st


September, 1956. Its Central Office is located in Mumbai. It also has seven zonal
offices each located in Mumbai(Western Zone), New Delhi (Northern Zone), Kanpur
(North-Central Zone), Bhopal (Central Zone), Chennai (Southern Zone),
Hyderabad(South-Central Zone), and Calcutta(Eastern Zone).

It has a network of over 2000(2048) branches and more than nine lakh agents. Over
47 years, LIC has become a household name for providing security for a lifetime and
is synonymous to life insurance in India.

LIC ranks No.1 in the list of top 500 companies on the basis of Net Worth(Rs. 15, 47,
951 million) as well as Net Profit(2,66,277 million)- Dun & Bradstreet (India 500

5
Public Relations Of LIC Of India

OBJECTIVES OF PUBLIC RELATIONS IN LIC

The objectives of undertaking PR activities in LIC are manifold. In their Citizen’s


Charter the company states that:

TO THE COMMUNITY: We will

Conduct all aspects of our business keeping in view the interests of the community and
the national priorities; Provide insurance cover and financial security to every insurable
segment including the socially and economically weaker sections of the society.

TO OUR CUSTOMERS: We will

provide them prompt, efficient and courteous service; act as trustees of their funds and
invest them to their best advantage; build and maintain enduring relationship;
keep them informed about our products and services etc.

TO OUR WORKFORCE: We will

promote a sense of participation and make them partners in progress; work towards
ensuring their job satisfaction and sense of pride; provide an environment and the
opportunities for growth to enable them to realize their full potential; take steps to
develop professional skills to enable them to handle their assignments more efficiently.

6
Public Relations Of LIC Of India

ORGANIZATION AND STAFFING OF THE PUBLIC


RELATIONS DEPARTMENT

LIC is purely a service-oriented organization. Moreover for transacting with their


customers and business associates the company needs to develop and maintain cordial
relations with various sections of the society and various other agencies i.e. their publics.
This makes the role of PR in LIC even more important and vital.
The company has a huge and active Public Relations Department which looks after the
publicity of the various services offered, maintaining cordial relations with the various
publics, publishing of journals, etc. and other PR activities.

Budget:

The management allocates Rs. 2-3 crores (approx.) annually to the PR Department. This
amount is then further allocated to the various Zonal Offices which prepare their
individual budgets according to their requirements.

Staffing Of PR Department

The Director-PR operates from the central office and has under him a Chief PRO. Each
Zonal Office has a Zonal Manager-PR under whom is the Regional Manager-PR. Further
under him is the Assistant Secretary who works with his Subordinate staff to fulfill the
day-to-day activities of the PR Department.

7
Public Relations Of LIC Of India

A PR plan is made at the beginning of each accounting year for which


the Chairman appoints a PR Planning Committee. This committee
comprises of the Director PR, Chief PRO, etc.

Tasks and Activities under the purview of PR at LIC


Of the various activities undertaken by ‘Life Insurance Corporation’ some are listed
below:

Advertising

Though countywide advertising is done by the marketing department, advertising locally


in the various cities is handled by Zonal Offices. The advertising strategy is very well
planned and is largely aimed at image building.

Organize press conferences

Press conferences are organized occasionally, generally when a new policy is released or
when the annual financial results are announced or if something of significance has
happened.

Issue Press Releases

Press Releases are issued both by the central office as well as the various zonal offices.

Participate in public awareness programmes

LIC has time and again joined itself with various community development and awareness
programmes for the cause of rural development and infrastructure development.

8
Public Relations Of LIC Of India

Publics Important to LIC

INTERNAL PUBLICS
 Employees

 Employee’s families
 Staff Unions

EXTERNAL PUBLICS
 Customers i.e. policy holders
 Prospective Customers
 Government Agencies
 Banks and Financial Institutions

 Statutory Bodies e.g. IRDA (Insurance Regulatory and Development Authority)


 Social Organizations
 Lawyers
 Local Administration
 Media
 General Public
 Auditors

9
Public Relations Of LIC Of India

RELATIONSHIP WITH SIGNIFICANT PUBLICS

Significant internal publics of the organization are its


 Employees
 Employees’ families; and the
 Staff unions.

EMPLOYEE RELATIONS

In most Indian organizations, or companies, communications with employees have so far


been given a back seat as compared to external communications. This has not been the
case with LIC. It has through time realized the importance of its internal publics.

LIC shares a good rapport with its employees. There are various staff unions to take care
of the employees rights. The company shares a cordial and harmonious relationship with
these unions.

The company’s focus, as regards its employees, is on providing:


 A healthy working environment;
 Employee friendly HRD policy;
 Job security;
 Training of Human resources;

 Fully utilizing its people’s talents and capabilities to promote skills and
competencies and broaden their perspective;
 Handsome remuneration and perks.

The company achieves the above objectives by a number of means.

10
Public Relations Of LIC Of India

I. HOUSE JOURNALS

The corporation has a corporate house magazine ‘YOGAKSHEMA’ which chronicles


corporate and organizational events and pronouncements.
The corporation also releases a quarterly newsletter ‘JANKALYAN’ which serves the
above mentioned purpose as well as acknowledging employee achievements and produce
merit lists of employee performance.

A news letter NILYAMDOT COM is also published by the corporation which is


developed by the children of the LIC employees and is exclusively for children.

II. INTERACTION
The corporation also conducts open houses, meetings, seminars, workshops. This is done
with the aim of facilitating two-way communication.

III. REWARDS

Prizes are awarded to top performers at staff meetings and conferences. Rewards are
given in the form of holiday, a family trip or some monetary gain.

CONSUMER RELATIONS IN LIC

In consonance with the changes taking place in the insurance market, the corporation has
undergone a transformation, simultaneously requiring a revamp in its image. Systematic
and focused PR initiatives and widespread publicity have resulted in markedly improved
visibility. The corporation has emerged with a much younger and sleeker image.

11
Public Relations Of LIC Of India

A conscious effort was made to bring about a transformation in the corporate image.
Through various campaigns, the corporation tried to depict the organization as one
oriented towards the younger generation.
The corporation advertising campaigns assisted the marketing strategies.

PR Activities for Consumer Relations

The business of insurance is purely service which cannot be seen or held. Hence, the
consumer relations activities of LIC concentrate on the customer public and building
relations with prospective customer.
The corporation has time and again made endeavors to reach out to the consumers,
interact with them and keep them satisfied.
The corporation tries to achieve its objective through a number of means
Oral Communication

Oral communication with the consumer public is the most effective means of
presenting facts and creating understanding of the organization’s policies and practices.

Employee-Consumer Communication:
The harmonious relationship that LIC has, through the years , built and maintained with
its customers has only been possible due to its dedicated and committed team of
Development Officers and scores of Insurance Agents throughout the country.

12
Public Relations Of LIC Of India

Press Conferences

Press Conferences are organized to announce new appointments of top executives,


introduction of new schemes, etc. It is very important in today’s world because Now – a –
days people are being aware about the appointment procedure of different companies and
consumer are also getting educated day by day because of which it becomes necessary for
the companies to keep press conferences.

13
Public Relations Of LIC Of India

Audio-Visual Communication

Television and Radio broadcasts are a basic medium of consumer communication. Now –
a-days it gaining a lot of importance.

Television and Radio advertising

The corporation’s advertisements reached nearly 25 crore people through over 50


campaigns. There were 79 hours of TV advertising and 408 hours of Radio advertising.

Trans-slides

14
Public Relations Of LIC Of India

The Corporation has placed trans-slides at strategic places, like Railway Stations and
Airports, for maximum exposure to public at large.

Printed Communication

At LIC printed communications are used in conjunction with oral communication media.

Press Release

Press releases are frequently handed out to the media by the local PR department on
behalf of the company. These generally comprise of any subject or issue concerning the
company, containing information for policy holders or any item of news value to the
media and its readers.

Journals and Publications

15
Public Relations Of LIC Of India

The corporation takes out its annual working results and several other publications from
time to time to keep the public abreast of the happenings and achievements at LIC.

Financial Results

The annual financial report of the corporation is published in the National dailies and is
also circulated amongst the shareholders to keep them informed. It also aims at attracting
new investors.

Booklets, Brochures and Pamphlets

Booklets, Brochures and Pamphlets are generally taken out to inform its internal and
external public about its various new schemes and act as an effective medium of print
communication.

Posters and Hoardings

These tools are not only an advertising medium but also a very effective PR tool. LIC
uses posters and hoardings to get quick public notice. Posters and hoardings are widely
placed throughout the city at busy intersections like subways, railway stations, roadsides,
bus shelters, etc.

Other Amenities Provided by LIC

Website

16
Public Relations Of LIC Of India

The Corporation’s website www.licindia.com gives information about the corporation’s


products, services, subsidiaries and addresses of branches and about premium payment
through the internet. It also provides
 Press releases
 News sections
 Online policy status

Online Premium Payment

LIC has tied up with HDFC Bank, ICICI Bank, UTI Bank, Bank of Punjab, Global Trust
Bank, Corporation Bank, The Federal Bank Ltd., Citibank, and service providers like Bill
Junction.com, timesofmoney.com to offer the online premium payment facility to its
customers in select cities.

Information Kiosks

The corporation has installed online information kiosks at prominent places across the
country. This provides information about the Products, services and policy status reports
to the customers.

Customer Contact Programme

The purpose of such a campaign is ‘to strengthen the relationship with the customers and
to build bridges of understanding.

FINANCIAL RELATIONS IN LIC

There are quite a few financial publics of LIC.


 Government Agencies
 Banks and Financial Institutions

17
Public Relations Of LIC Of India

 Statutory Bodies e.g. IRDA (Insurance Regulatory and Development Authority)


 Auditors

To communicate with them and to keep them informed of the company’s progress several
activities are undertaken by the PR Dep’t.

 The Annual General Meeting


 The Annual Report
 The annual report is released annually to inform all publics of the company’s
working results.
 Chairman’s Statement
The chairman’s statement is a comprehensive guide to what the company is and where it
strives to be. It comprises of the corporation’s corporate vision, philosophy and policies,
management contributions, future plans and a host of other such important aspects.

COMMUNITY REALTIONS IN LIC

LIC regularly provides ‘Health vans’ to various organizations across the country. The
corporation also sponsors many sports events at the national level. Numerous publicity
projects with a social purpose are undertaken at the zonal level.
Recently the North Zone (Delhi) associated itself with the ‘Perfect Health Mela’ to
propagate the cause of good health.

AIM OF CORPORATE RELATIONS FULFILLED AT LIC

The aim of any organization is to create for itself:

18
Public Relations Of LIC Of India

A. CORPORATE IDENTITY
B. CORPORATE IMAGE
C. CORPORATE CITIZEN

A. CORPORATE IDENTITY

Image Communicators/ Identity Creators

Company Logo

The company’s logo has become synonymous with insurance and security in India. It
helps to identify the company easily.

Sign-up Line

‘We Know India Better’ is the sign up line of LIC

Company Publications

The company has a host of publications that comprise of in-house journals, external
newsletters, annual reports, etc.

Citizens Charter
The company philosophy goes a long way in creation of harmonious relations with its
publics. The citizen’s charter is a comprehensive statement of the company’s philosophy
towards its publics.

19
Public Relations Of LIC Of India

B. CORPORATE IMAGE

The above listed image communicators have been very successful in creating a corporate
image of LIC in the minds of the people over the years since its establishment.

C. CORPORATE CITIZEN

With all its PR initiatives and activities, since its establishment, LIC has proved to be a
successful corporate citizen.

Corporate Policy of LIC on Public Relations

Public Relations aims at building-up and maintaining sound, effective and productive
relations with the public so as to help the organization to understand and interpret the
environment as also help the public and the society at large to appreciate the performance
and limitations of the organization. Public Relations has the responsibility to build and
maintain two-way relations between the Public and the Organization at all levels.

The Public in the case of LIC includes:

A. Levels of employees and agents.


B. Customers.
C. Government: Central, State & Local bodies.
D. Media, Press, T.V., Radio & Agency-owners and correspondents and
E. Citizens at large.
A clearly laid down Public Relations Policy, therefore, is essential to set the goals,
indicate the strategies and give proper direction to all levels in the area of Public
Relations.

20
Public Relations Of LIC Of India

Mission

Establish understanding and develop awareness of mutual aspirations of LIC and the
Public.

Goals

1. Promote within the Corporation greater awareness of the changing environment and
he need to align the corporate policy to the emerging situation.

2.Help fashioning, within the constraints, its policies,programmes, practices and


Products to meet the expectations of the Public. Help the public to appreciate the
Performance andthe limitations of LIC.

3. Make PR occupy the front seat in the organizational set-up.

Strategy

1. Develop excellent relations with the totality of the media-print,electronic and agency
owners and reporters by regular exchange of information with them.

2. Establish relations-and develop understanding with the Govt. -Central, State & Local
bodies through legislators and Govt. officials.

3. Develop full understanding with the workers-employees at all levels and agents on
Organizational goals, policies, practices and programmes.

4. Develop an effective system of communication with the departments and operating


units on the environment and on implementation of policies.

5. Build an atmosphere of goodwill and understanding inside and outside the organization
leading .to better appreciation of the corporation's policies and performance.

21
Public Relations Of LIC Of India

6. Help to evolve effective machinery for quick and satisfactory redressal of grievances
of the public.

7. Help to develop an image of LIC as a responsive organization,

8. Devise methods for opening up channels of two-way communication with various


publics of the Corporation.

Action Plan

1. Keeping the objectives, philosophy and the strategies in view, drawing-up annual PR
plans by Branches, Divisions, Zones & Corporate Office.

2. Develop an effective system of periodical reviews of PR Plans at all levels - B.O.,


D.O., Z.O. and Corporate.

3. Develop streamlined methods of systematic dissemination of the information relevant


to each of the publics.

4. Develop streamlined methods of receiving messages/feedbacks from the totality of the


publics.

5. Formation of PR Advisory Committees at D.O., Z.O. and C.O.organize PR


departments in the C.O., Z.O.s and D.O.s for realization of the goals, and develop a
nucleus in branches also.

6. Organize events like inauguration of new B.O., D.O., Z.O. or any arm of the
Corporation (diversification) etc. as public functions to project corporate image.

22
Public Relations Of LIC Of India

7. Actively participate in at least one important scheme in each of the States and in two
or three national level schemes to help improve the quality of social life and establish
the social relevance of LIC.

8. Develop a task-plan in respect of the above strategies.

Public Relations Activities at L.I.C.

PRESS CONFERENCE

Press conference & interview are arranged periodically by all L.I.C. offices - i.e. ,
Central, Zonal, Divisional and Branch offices at the time of launching any new scheme
and to inform about the policies , programmes and activities to the press so that it can be
publicized.

LIC WEB SITE

LIC has its own web site Licindia.com which provides information about LIC and its
subsidiaries and the products offered by them.

USAGE OF INFORMATION TECHNOLOGY.

With a view to providing quick and accurate service its Customers LIC has introduced
on-line service through front – end terminals in 1993 branches and soon all our customers
will be able to benefit by this.

GREIVANCE REDRESSAL MACHINERY

LIC has established an elaborate Grievance Redressal machinery in order to deal with
problems of customers. The grievance redressal cells are operative at all levels i.e.

23
Public Relations Of LIC Of India

Branch, Divisional, Zonal and Corporate offices. Specially designated officers attend to
policyholder's complaints.

RALLY ORGANISATION

LIC has organized a massive rally to pay homage martyrs of Kargil to provide moral
support to the Indian army.
PR And Publicity Conferences

PR and Publicity Conferences arranged at the central office in which


the Chairman emphasized the need to reposition the organization the
organization in the emerging cooperative scenario with the help of
revised PR and publicity strategies because it was found out by a survey
that the level of customer satisfaction is not very high.

Claim review committees

A claims review committee was being formed at the corporate level with a retired Judge
as one of the members and it handles grievances arising out of repudiation of claims etc.
Similar committees are also constituted at Zonal level.

Press Releases

Press releases regarding important news are released from time to time so that people are
kept informed and they know about them.

Customer Meets

Periodical customer meets are organized at Divisional and Branch level to facilitate
greater interaction with policyholders.

24
Public Relations Of LIC Of India

Publicity Pavilion

Publicity Pavilion are arranged to display information about PR and Publicity activities of
LIC.

Consumers Affair Committee

A high profile committee has been constituted by the Central office with eminent persons
from the consumer’s movement being its member to advice and guide LIC on maters
concerning consumer interests.

Exhibitions

LIC arranges its various schemes and exhibitions so that it can display its various
schemes and plans.

Citizens Charter

The corporation has adopted a Citizens Charter wherein commitments have been made to
its customers for higher standards in servicing.

Free Phone Call Facility to the Policy Holders

A unique facility of free phone call service is being provided to the policy holders of
Mumbai city to enable them to have easy access to grievance redressal officers over the
phone.

Sponsorship

LIC sponsors many events like chess tournaments table tennis


tournaments for the employees and also for the general public. It has

25
Public Relations Of LIC Of India

also sponsored a health camp organized by ‘Masoom’ – an organization


of understanding and fraternity.

Distribution of Dairies and Calendars

LIC distributes dairies and calendars to its employees and also to the general public every
year.

Publicity Stalls

Publicity stalls are been put up by LIC at different fairs and melas to publicize the
corporation and its schemes and plans.

Public Functions

Inauguration of new offices helps in communication as well as in enhancing the image of


the corporation.

Advertisement in Newspaper and Magazine

Advertisement about LIC’s products, activities and policies is published in newspapers


and magazines.

House Magazine –Yogkshema

Yogkshema is the house magazine of LIC. It provides information about


the corporation, its activities, policies an programs.

Advertisement at Railway Station and Airport

26
Public Relations Of LIC Of India

Posters and banners are set up at strategically important public places such as Airports,
Railway stations, Bus terminals, shopping counters an at the reception counters of the
business premises. This enables the policy holders to access information about LIC & its
products etc.

Insurance Week

An insurance week was arranged by LIC through which people were exposed to various
insurance schemes of LIC.

Advertisement on Radio satellite channel

Advertisement about LIC are frequently been telecast on radio and satellite channel.

Advertisement at Kumbh Mela

LIC has also advertised about its products and the corporation even in Kumbh Mela.
Training Programmes

Training programmes are arranged by LIC for its employees so that they can be trained
for the purpose of public relation activities.

Meetings

Meetings of Development officers are arranged by LIC to train their employees for public
relation activities.

27
Public Relations Of LIC Of India

CONCLUSION

Public Relation came into existence by the belief that if we do something good for people
then only the people will say well about the organization. Today's is an age of
competition. And to remain firm in the competition depends on how efficiently the
Organization manages its PR & projects the company's image.

Public Relation will not sell goods and Services but it is bound to create an atmosphere
which will make the free enterprise, a responsible enterprise. Public Relations, in fact
Will prove to be the most effective tool for communicating with the
People who are still remote from industry for convincing them that
Corporate objectives are ultimately in the interest of the public.

The PR Mantra has now become pervasive. Neither a individual nor the organization &
not even the government Or a UN body can thrive or sustain in this age without
effectively strategizing PR.

28
Public Relations Of LIC Of India

Bibliography

• Principles of Public Relations.


- C.S. Rayudu.
- K.R. Balan.

• Hand Book of PR in India.


- D.S. Mehta.

• The Art and Science of Public Relations.


- Anne Gregory.

• LIC India.com

• AltaVista.com

• Find Articles.com

29
Public Relations Of LIC Of India

30