Sequence of the pages

The following headings should be in Upper Case, Bold, Font size 16, Times New
Roman, and centrally aligned.

 TITLE PAGE
 DECLARATION
 ACKNOWLEDGEMENT
 TABLE OF CONTENTS
 LIST OF TABLES
 LIST OF FIGURES
 CHAPTER –I : INTRODUCTION
 CHAPTER –II: CONCEPTUAL FRAMEWORK
 CHAPTER –III: DATA ANALYSIS AND
INTERPRETATION
 CHAPTER-IV: SUMMARY AND CONCLUSION
 BIBLIOGRAPHY
 APPENDIX
 A Minor Project Report on

TITLE OF THE REPORT

(Report Title to be in Capital Letters/Upper Case, Font: Times New Roman, 18, Bold)

Submitted in partial fulfillment of the requirements for the award of the

degree of Bachelor of Commerce (Hons.) programme of Guru Gobind
Singh Indraprastha University, Delhi.

(Font: Times New Roman, 14, Sentence Case, Bold)

Submitted To: Submitted by:

Guide Name Student Name
Roll No.:

Lingaya’s Lalita Devi Institute of Management & Sciences

(NAAC Accredited “A” Grade Institute & Approved u/s 2(f) of UGC Act 1956)

Mandi Road, Mandi, New Delhi-110047

 DECLARATION

(Font: Times New Roman, 16, Bold, Upper Case, No underline)

I, hereby declare that this Minor Project Report, entitled “___________(Title of the

report)_____________”, is an authentic work carried out by me. It has not been submitted

earlier for award of any degree or diploma to any institute or university.

Place: New Delhi Candidate’s signature

Date: Name: Suneeta Sharma

Enroll. No.: 0671812210

Countersigned

Name :

Supervisor

Lingaya’s Lalita Devi Institute of Management & Sciences

 ACKNOWLEDGEMENT

(Font : Times New Roman, 16, Bold, Upper Case, No underline)

It is my pleasure to be indebted to various people, who directly or indirectly contributed in

the development of this work and who influenced my thinking, behaviour and acts during

the course of study.

I express my sincere gratitude to …………………………………………… the worthy

Director of Lingaya’s Lalita Devi Institute of Management & Sciences, for providing me

an opportunity of doing this project under his leadership.

I also extend my sincere indebtedness to ………(Name of the faculty

guide)………………….who provided his/her valuable suggestion and precious time in

accomplishing my project.

I also take the opportunity to express my sincere gratitude to each and every person, who

directly or indirectly helped me throughout the project and without anyone of them this

project would not have been possible.

The immense learning from this project would be indelible forever.

(Sign & Name of the student)

 TABLE OF CONTENTS

S.No. Topic Page No

1 Declaration i

2 Acknowledgement ii

3 List of Tables iii

4 List of Figures iv

6 Chapter-1: Introduction 1-15

 Overview of Industry as a whole 1

 Profile of the organization
3
 History of the Organization
 Competitor’s Information 5

 S.W.O.T Analysis of the Organization 7

 Objectives of the study
10
 Scope of the study
 Methodology 15

7 Chapter-2: Conceptual Framework 16-25

 Main topics & Sub Topics

8 Chapter-3: Data Analysis and interpretation 26-31

9 Chapter-4: Summary and Conclusion 32-40

 Results of the study

 Limitations
  Suggestions and Recommendations
10 Bibliography -

11 Appendix -

CHAPTER I

INTRODUCTION
 With such a large population and the untapped market area of this populationInsuranc
e happens to be a very big opportunity in India. Today it stands as a business growing
atthe rate of 15-
20 per cent annually. Together with banking services, it adds about 7 per cent tothe co
untry¶s GDP .In spite of all this growth the statistics of the penetration of he insuranc
e inthe country is very poor. Nearly 80% of Indian populations are without Life insur
ance cover andthe Health insurance. This is an indicator that growth potential for the i
nsurance sector isimmense in India. It was due to this immense growth that the regula
tions were introduced in theinsurance sector and in continuation

 was constituted by the governmentin 1993 to examine the various aspects of the indus
try. The key element of the reform processwas Participation of overseas insurance co
mpanies with 26% capital. Creating a more efficientand competitive financial system
suitable for the requirements of the economy was the main idea behind this reform. Si
nce then the insurance industry has gone through many sea changes .Thecompetition
LIC started facing from these companies were threatening to the existence of LIC.Sin
ce the liberalization of the industry the insurance industry has never looked back and t
odaystand as the one of the most competitive and exploring industry in India. The ent
ry of the private players and the increased use of the new distribution are in the limeli
ght today. The use of newdistribution techniques and the IT tools has increased
  Objective & Function of Life Insurance Corporation

of India (LIC)
LIFE INSURANCE CORPORATION OF INDIA
Established: 1 September 1956 (Nationalization in 1956)

Headquarters: Mumbai

Founder: Government of India

Owner: Government of India

Role: Insurance

Website: www.licindia.in

 Key Points: LIC – Life Insurance

Corporation of India
1. It is the largest insurance company in India.
2. The Parliament of India passed the Life Insurance of India Act on 19
June 1956 creating the Life Insurance Corporation of India, which
started operating in September of that year.
3. Life Insurance Corporation of India (LIC) celebrates
its Foundation Day 1st September

4. The LIC gets a large amount of insurance premium and has been
investing in almost all sectors of the economy, viz, public sector, the
private sector, co-operative sector, Joint Sector and now it is one of the
biggest term-lending institutions in the country. LIC was established to
spread the message of Life Insurance in the country and mobilize
people’s savings for nation-building activities.
  Functions of Life Insurance Corporation of India

1. The life insurance business was nationalised on 19th January, 1956 and the Li
fe Insurance Corporation of India came into being on 1st September, 1956 to
carry on life business in India with capital of Rs.5 crorescontributed by the C
entral Government. The Corporation is a body corporate having perpetual suc
cessionwith a common seal with powers to acquire, hold and dispose of prope
rty and may by its name sue and besued.T h e f u n c t i o n s o f t h e C o r p o r a t i o n
s h a l l b e t o c a r r y o n a n d d e v e l o p l i f e i n s u r a n c e b u s i n e s s t o t h e b e s t ad
vantage of the community.The Corporation shall have power – (a) to carry on capital rede
mption business, annuity certain business or reinsurance business in so far as suchreinsur
ance business relating to life insurance business;(b) to invest the funds of the Corpo
ration in such manner as the Corporation may think fit and to take allsuch step
s as may be necessary

2. expedient for the protection or realisation of any investment; including thet a k i n g o v e r

of and administering any property offered as security for the invest
m e n t u n t i l a s u i t a b l e opportunitn arises for its disposal;(c) to acquire, hold and disp
ose of any property for the purpose of its business;(d) to transfer the whole or any p
art of the life insurance business carried on outside India to any other person
or persons, if in the interest of the Corporation it is expedient so to do;(e) to advance or le
nd money upon the security of any movable or immovable property or otherwise;(f) to bo
rrow or raise any money in such manner and upon such security as the Corporation may t
hink fit;(g) to carry on either by itself or through any subsidiary any other busi
ness in any case where such other business was being carried on by a subsidiary of
an insurer whose controlled business
3. has been transferredto and vested in the Corporation by this act;(h) to carry on any other
business which may seem to the Corporation to be capable of beingc o n v e n i e n t l y c a r
ried on in connection with its business and calculated directly or ind
i r e c t l y t o r e n d e r profitable the business of the Corporation; and(i) to do all such thi
ngs as may be incidental or conducive to the proper exercise of any of the powers of theC
orporation.(j) In the discharge of any of its functions the Corporation shall act so far as eg
g be on business

(LIC) of India

 Profile of Life Insurance Corporation (LIC) of India

 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 companies. 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
1905-1907 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,
 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.
 The first two decades of the twentieth century saw lot of growth in
insurance business. From 44 companies with total business-in-force as
Rs.22.44 crore, it rose to 176 companies with total business-in-force as
Rs.298 crore in 1938. During the mushrooming of insurance companies
many financially unsound concerns were also floated which failed
miserably. The Insurance Act 1938 was the first legislation governing not
only life insurance but also non-life insurance to provide strict state control
over insurance business.
 The demand for nationalization of life insurance industry was made
repeatedly in the past but it gathered momentum in 1944 when a bill to
amend the Life Insurance Act 1938 was introduced in the Legislative
Assembly. However, it was much later on the 19th of January, 1956, that
life insurance in India was nationalized. About 154 Indian insurance
companies,
 16 non-Indian companies and 75 provident were operating in India at the
time of nationalization. Nationalization was accomplished in two stages;
initially the management of the companies was taken over by means of an
Ordinance, and later, the ownership too by means of a comprehensive bill.
The Parliament of India passed the Life Insurance Corporation Act on the
19th of June 1956, and the 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. As a result of re-organisation servicing functions were
transferred to the branches, and branches were made accounting units. 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 satellite 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 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.

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.
Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on
Indian soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance
company started its business.

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 are taken over by
the central government and nationalised. Life Insurance Corporation (LIC)
formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of
Rs. 5 crore from the Government of India

2»
 Brief History Of Insurance
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 companies. 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 1905-1907 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.

The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore, it rose to
176 companies with total business-in-force as Rs.298 crore in 1938. During the
mushrooming of insurance companies many financially unsound concerns were also
floated which failed miserably. The Insurance Act 1938 was the first legislation
governing not only life insurance but also non-life insurance to provide strict state
control over insurance business. The demand for nationalization of life insurance
industry was made repeatedly in the past but it gathered momentum in 1944 when a
bill to amend the Life Insurance Act 1938
was introduced in the Legislative Assembly. However, it was much later on the 19th
of January, 1956
that life insurance in India was nationalized. About 154 Indian insurance companies,
16 non-Indian companies and 75 provident were operating in India at the time of
nationalization. Nationalization was accomplished in two stages; initially the
management of the companies was taken over by means of an Ordinance, and later,
the ownership too by means of a comprehensive bill. The Parliament of India passed
the Life Insurance Corporation Act on the 19th of June 1956, and the 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. As a result of re-organisation servicing functions were
transferred to the branches, and branches were made accounting units. 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, 113 divisional
offices, 8 zonal offices, 1381 satallite offices and the Corporate office. LIC’s Wide Area
Network covers 113divisional 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 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.

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.

» Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian
soil started functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company
started its business.

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 are taken over by the
central government and nationalised. 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.

» Some of the important milestones in the general insurance business in India

are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all
classes of general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames
a code of conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency
margins and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised the
general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the National
Insurance Company Ltd., the New

 CHAPTER II
CONCEPTUAL FRAMEWORK
In This chapter:
 Explain the concept related to the project, definitions and related theory.

CHAPTER III
 DATA ANALYSIS & INTERPRETATION
 The Data presented in standard formats namely
-tables representing question wise collected data ,
-charts/graphs, diagrams etc representing the above tabulated data
 Analysis of the presented data explaining the rationale and logic for drawing
inference and relate to the data collected.

CHAPTER IV
SUMMARY AND CONCLUSION
The chapter should include:
 Results of the study-The summary of analysis giving/supported by facts and
figures from Chapter III.
 Limitations of the project-related to topic and project
 Suggestions & Recommendations.
BIBLIOGRAPHY

 Books (Compulsory)
1. Surname, First Name. “Name of the Book”, Publisher, Place of Publishing,
Edition, year of publishing

 Magazines and /or Journals

1. Surname, First name (of the author of the article). “Title of the Article”
Name of Journal/Magazine, Volume, S.No, month and year, page number

 Websites
1. http://search.eb.com-59.25 jpf.html. (Last accessed on 9th February 2013).

APPENDIX
Questionnaire and some other supporting documents
 Formatting
 A-4 size page
 Page Margin: Left- 1.25” (3.18 cm) Right-1.25” (3.18 cm)
(Office 2003 default) Top- 1” Bottom-1”
 Text format
- Times New Roman
- Line spacing: chapter 1 onwards- 1.5 , front page and Tables-1.5.
- Character spacing normal
- Font size
 Chapter Heading – 16 (Bold)
 Titles – 14 (Bold)
 Normal Text – 12 (Regular)
- Justified alignment(Except Chapter headings which will be centrally aligned )
 No. of pages: -60-80 pages
 Tables and figures are to be numbered and named wherever used in the report
Figure

Table no. 1:__Table name___ Figure no. 1 : Figure name____

 Binding : Soft bound -2 copies

Soft copy in CD-1
 Page numbering: At the centre of the page, to be started from chapter 1. Excluding
bibliography and appendices. Front pages are to be numbered in roman.
 Italics and underlines are not allowed
 Bullets-simple bullets
 Pictures are not allowed.
 There should be minimum 10 questions in a questionnaire related to the
topic/product other than profile information.
 Sample Size-50