A Project Study Report On Training Undertaken at

LIC
Titled

"CUSTOMER SATISFACTION IN LIFE INSURANCE CORPORATION"
Submitted in partial fulfilment for The Award of degree of Bachelor in Business Administration In Lieu of Paper 306

2010-2011
Under the supervision of Dr. Pawan Kumar Patodiya Asstt.Prof. Submitted by GAURI SONI BBA-III

BIYANI GIRLS COLLEGE

UNIVERSITY OF RAJASTHAN
JAIPUR

CERTIFICATE
This is to certify that Ms. GAURI SONI student of BBA Part-3 of Biyani Girls College, Jaipur has prepared her project report entitled "Customer Satisfaction in LIC" under my supervision. She has prepared the project report on the basis of training received at “LIFE INSURANCE CORPORATION” for a period of 45 days.

To the best of my knowledge this is an original piece of work.

Date:
Dr. Pawan Kumar Patodiya

ACKNOWLEDGEMENT
I have great pleasure in expressing my deep sense of gratitude to my Institute Biyani Girls College, Jaipur and LIC for giving me an opportunity to carry out my summer training as a part of BBA program. I hereby acknowledge the most important people whose help and guidance helped me to get this report and the project on the whole done successfully. I am thankful to Mr. Pankaj Kathuria (Development Officer) for allowing me to join as a summer trainee in their esteemed organization. I have tried my level best to make this summer training successful and get a deep knowledge about customer satisfaction. I also dedicate my warm thanks to my parents and friends who didn’t let me down rather inspired me all the time in performing the best. GAURI SONI BBA-III Biyani Girls College

. Insurance have become an integral part of life of man all over the globe. The proverb ‘Need is the mother of invention’ is proving equally correct in case of insurance. This project on “life Insurance corporation of India” deals with the automation of various activities done in insurance like how the insurance companies doing there business and what is the feature of life insurance. Insurance have already had a considerable impact on many aspects of our society.PREFACE The field of insurance has taken a giant leap at the threshold of twentieth century.

Bibliography Chapter 1 .Data analysis and interpretation Chapter 6-Conclusion Cchapter7-Recommentation Chapter8.Contents Chapter 1.Introduction And objective Chapter 2-Industry profile Chapter 3-Company profile Chapter 4-Subject matter Introduction of topic Research methodology Chapter 5.

INTRODUCTION INTRODUCTION .

the prominence of insurance is not as widely understood. or Unfortunate death. It should. What Is Life Insurance? Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee) on the happening of the event insured against. Among other things. which is one of the most populated in the world. the contract also provides for the payment of premium periodically to the Corporation by the policyholder. if it occurs earlier. Life insurance. The contract is valid for payment of the insured amount during:  he date of maturity. For more details. substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of death of the breadwinner. please contact our branch or divisional office. What follows is an attempt to acquaint readers with some of the concepts of life insurance. life insurance is civilization’s partial solution to the problems caused by death. is concerned . in short. however.LIFE INSURANCE IN INDIA Life insurance in India made its debut well over 100 years ago. or T Specified dates at periodic intervals. with special reference to LIC. which eliminates 'risk'. be clearly understood that the following content is by no means an exhaustive description of the terms and conditions of an LIC policy or Its benefits or privileges. By and large.In our country. Any LIC Agent will be glad to help you choose the life insurance plan to meet your needs and render policy servicing. Life insurance is universally acknowledged to be an institution. as it ought to be.

get details on his/her policies. 2005 Life Insurance Corporation of India (LIC) is embarking on a number of customer relationship management initiatives to retain its foothold in the market. change the resident address when he/she shifts to a new place and even take a printout of the income tax certificate.with two hazards that stand across the life-path of every person: 1. The portal is likely to be ready in a month’s time. LIC is planning to start a new portal for its policyholders where a customer can log in. That of dying prematurely leaving a dependent family to fend for itself. said. “The allotment of customer folio number for all our holders will still take a year’s time in this zone. 2. it has already started work on allotment of customer folio number to know each customer's holding. in the wake of private players inching their way up in the life insurance sector. That of living till old age without visible means of support. Besides. . The Insurance behemoth is planning to tie-up with a number of banks to enable a payment gateway wherein the policyholders can make their premium payments via credit cards. Customer satisfied with LIC service because the LIC totally concentrate customer relations and it makes customers attract towards the LIC LIC moves towards better customer relations Plans to start a new portal for its policyholders Our Regional Bureau / Hyderabad September 07. information technology. LIC (south-central zone).” H Nanda. regional manager.

795 policies under new business. LIC also plans to launch three-four products this year with one of these being unitlinked insurance plan in October. Regarding the recently launched Bima Gold policy. Mangalore and Hubli. we will also be setting up five satellite branches in the zone. LIC (south-central zone).“The electronic clearance system that we have launched at Hyderabad. As on August 31. 2005. Bangalore. Shortly. regional manager (marketing). Here the customer’s premium is automatically debited from his account at the time of payment. the zone will also see the launch of this system in Mysore. “This month. the zone has issued 12. . with two being in Hyderabad and three in Bangalore.” he added. the corporation plans to sell 15 lakh policies this year in the south central zone with the national figure being one crore.” A K Sahoo. has been doing very well. a money-back policy with premium payment options. Vijayawada and Visakhapatnam.47. said at a press conference organised on the occasion of the beginning of the golden jubilee year for LIC.

physical and financial conditions.OBJECTIVES OF THE STUDY The main objective of this study is to carry on brief study on “Customer satisfaction survey on insurance products of LIC Other objectives of this project are as follows:  To identify the insurance needs of the Indian population with respect to their emotional.  To find out the procedure of claim policy holder or the beneficiary .  The prime objective of the study is to find out the level of satisfaction of a customer (policy holders or beneficiary) so far as the settlement of claims.  Comparative study of various insurance players in the market  To study the varied reasons of availing life insurance plans  To clearly understand the rationale behind the investment in policies of LIC and private sector insurance companies  To test the awareness of customers on various aspects of life insurance policies offered by LIC and other private sector insurance companies and find whether there is any relation between them.

Chapter 2 Industry profile .

General Assurance and Swadeshi Life (later Bombay Life) were some of the companies established during the same period. Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance company in the year 1870. 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. the Swadeshi movement of 19051907 gavwe rise to more insurance companies. . Bharat Insurance Company (1896) was also one of such companies inspired by natioalism. But Indian lives were being treated as sub-standard lives and heavy extra premiums were being changed on them. The United India in Madras. The Life Insurance Companies Act. house of the great poet Rabindranath Tagore.Industry profile ABOUT THE ORGANIZATION Life Insurance in its modern form came to India from England in the year 1818. Starting as Indian enterprise with highly patriotic motives. However. In the year 1912. and covered Indian lives at normal rates. the Life Insurance Companies Act. insurance companies came tito existence to carry the message of insurance and social security through insurance to various sectors of society. National Indian and National Insurance in Calcutta and the Hindustan Co-operative Insurance Company took its birth in one of the rooms of the Jorasanko. 1912 made it necessary that the premium rate tables and periodical valuations of companies should be certified by an actuary. India had no legislation to regulate insurance business. The Indian Mercantile. Prior to 1912. later with the efforts of eminent people like Babu Muttylal Seal. Oriental Life Insurance Company stated by Europeans in Calcutta was the first life insurance company on Indian Soil. in Calcutta. the foreign life insurance companies started insuring Indian lives. and the Provident Fund Act were passed.

providing them adequate financial cover at a reasonable cost. 33 divisional offices and 212 branch offices. and the Life Insurance Corporation of India was created on 1st September. 298 crore in 1938. initially the management of the companies was taken over by means of an Ordinance. 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. LIC had 5 zonal offices. About 154 Indian insurance companies. . 16 non-Indian companies and 75 provident were operating in India at the time of nationalization.00 crore Sum Assured on new policies. and branches were made accounting units. However. by 1985-86 LIC had already crossed 7000. 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. 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. 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. putting the Indian companies at a disadvantage.00 crores only in the year 1969-70. During the mushrooming of insurance companies many financially unsound concerns were also floated which failed miserably. From 44 companies with total business-in force as Rs.44 crore. 1956. and it took another 10 years for LIC to cross 2000. 22. It may be seen that from about 200. and later. it rose to 176 companies with total business-in-force as Rs.But the act discriminated between foreign and Indian companies on many accounts. The first two decades of the twentieth century saw lot of growth in insurance business. nationalization was accomplished in two stages. The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956.00 crores of New Business in 1957 the corporation crossed 1000. that life insurance in India was nationalized. it was much later on the 19th of January. It worked wonders with the performance of the corporation. apart from its corporate office in the year 1956. 1956. But with re-organization happening in the early eighties. the ownership too by means of a comprehensive bill.00 crore mark of new business. As a result of re-organization servicing functions were transferred to the branches. re-organization of LIC took place and large numbers of new branch offices were opened.

the first life insurance company on Indian soil started functioning. LIC continues to be the dominant life insurer even in theliberalized scenario of Indian insurance and is moving fast on a new growth trajectory surpassing its own past records. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business.Today LIC functions with 2048 fully computerized branch offices. 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. Kolkata. 7 zonal offices and the corporate office. Pune and many other cities. the first Indian life insurance company started its business. New Delhi. Bangalore.01. 1870: Bombay Mutual Life Assurance Society. leaner and closer to the customer. The satellite offices are smaller. It has crossed the milestone of issuing 1. LIC has crossed many milestones and has set unprecedented performance records in various aspects of life insurance business.67% over the corresponding period of the previous year. LIC has issued over one crore policies during the current year. posting a healthy growth rate of 16. . LIC has tied up with some Banks and Service providers to offer on-lint premium collection facility in selected cities. LIC’s Wide Area Network covers 100 divisional offices and connects all the branches through a Metro Area Network. Hyderabad. Apart from online Kiosks and IVRS. Chennai.955 new policies by 15th Oct. LIC’s ECS and ATM premium payment facility is an addition to customer convenience. From then to now. The digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in the future. LIC has launched its SATELLITE SAMPARK offices. Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company.Info Centres have been commissioned at Mumbai. 100 divisional offices. 2005. Ahmedabad. With a vision of providing easy access to its policyholders.32.

It presently transacts individual Life Insurance business. the first general insurance company established in the year 1850 in Calcutta by the British.048 branches and over six-lakhs agency force. grants housing loans through its subsidiary. social security schemes and Pensions.24 lakhs employed and 2. A monolith then. LIC formed by an Act of Parliament. Life insurance Corporation of India (LIC) The Life insurance Corporation was established about 44 years ago with a view to provide an insurance cover against various risks in life. the corporation. 1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalized. 1956.. At the apex. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. Its main asset is its staff strength of 1. with a capital contribution of Rs. LIC Act. on the other hand. along with the Government and the GIC.1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. . 5 crore from the Government of India. LIC has hundred divisional offices and has established extensive training facility at all levels. At the industry level. it has helped establish the National Insurance Academy. The General insurance business in India. viz. is the Management Development Institute. seven zonal Training Centre and 35 sales Training Centers. group Insurance business. enjoyed a monopoly status and become synonymous with life insurance. can trace its roots to the Triton Insurance Company Ltd.

It pays off about Rs 6.000 crores annually to5.And the markets savings and Investment products through its mutual fund.6 million policyholders LIC OPERATES ALL OVER INDIA .

Chapter 3 Company profile .

000 Parent: NIL Subsidiaries: LIC Housing Finance Limited.licindia.00. Mehta and Thomas Mathew (Managing Directors) Industry: Life insurance Products: Insurance and Pension Plans Employees: Over 10. D. K. etc.com . Website: http://www. India (Various other locations in India and abroad) Key people: T. Vijayan (Chairman). S.Company profile Type: Public limited company or Government-owned corporation Founded: September 1. 1956 Headquarters: Headquarters in Mumbai.

Chapter 4 Objectives Of LIC .

  . keeping in view national priorities and obligations of attractive return. pride and job towards achievement of Corporate objective. the funds to be deployed to the best advantage of the investors as well as the community as a whole.    Bear in mind.  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.  Maximize mobilization of people’ savings by making insurance-linked savings adequately attractive. the primary obligation to its policyholders.OBJECTIVES OF LIC  Spread Life Insurance widely and in particular to the rural areas and to the socially and economically backward classes with a view to reaching allinsurable persons in the country and providing them adequate financial cover against death at a reasonable cost. in the investment of funds.   Meet the various life insurance needs of the community that would arise in the changing social and economic environment. whose money it holds in trust.   Act as trustees of the insured public in their individual and collective capacities.   Conduct business with utmost economy and with the full realization that moneys belong to the policyholders.  Promote amongst all agent and employees of the corporation a sense of participation. without losing sight of the interest of the community as a whole.

1956: 245 Indian and foreign insurers and provident societies are taken over by the central government and nationalised.” Vision “A trans-nationally competitive financial conglomerate of significance to societies and Pride of India. 1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1956.MISSION/VISION Mission “Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses. with a capital contribution of Rs. the first life insurance company on Indian soil started functioning. LIC formed by an Act of Parliament. . Some of the important milestones in the life insurance business in India are: 1818: Oriental Life Insurance Company. 5 crore from the Government of India. the first Indian life insurance company started its business. 1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public. and by rendering resources for economic development. LIC Act.” LIC of India is the one and only public sector life insurance Company in India. viz. 1870: Bombay Mutual Life Assurance Society.

The General insurance business in India. can trace its roots to the Triton Insurance Company Ltd. Chapter 5 Products Of LIC Products Of LIC: LIC – Jeevan Anurag Benefits: .. on the other hand. the first general insurance company established in the year 1850 in Calcutta by the British.

LIC’s Jeevan ANURAG is a with profits plan specifically designed to take care of the educational needs of children. At maturity. Death Benefit: Payment of an amount equal to Sum Assured under the basic plan immediately on the death of the life assured. Assured Benefit: Payment of 20% of the Basic Sum Assured at the start of every year during last 3 policy years before maturity.Jeewan Kisore . if term of the policy is 20 years. 19th year and 40% of the Sum Assured along with the reversionary bonuses and the terminal bonus. Benefits under the plan are payable at prespecified durations irrespective of whether the Life Assured survives to the end of the policy term or dies during the term of the policy. this plan also provides for an immediate payment of Basic Sum Assured amount on death of the Life Assured during the term of the policy. 20% of the Sum assured will be payable at the end of the 17th. if any. if any shall be payable. The plan can be taken by a parent on his or her own life. LIC . 40% of the Basic Sum Assured along with reversionary bonuses declared from time to time on full Sum Assured for the full term and the Terminal bonus. at the end of the 20th year. In addition. 18th. For example.

It gets a share of the profits in the form of bonuses. half-yearly.e. they form part of the guaranteed benefits of the plan. It provides the risk cover on the life of child not only during the policy term but also during the extended term (i. LIC – Childs Career Plan Introduction: This plan is specially designed to meet the increasing educational and other needs of growing children. whichever is later. The policy may be purchased by any of the parent/grand parent. Commencement of risk cover: The risk commences either after 2 years from the date of commencement of policy or from the policy anniversary immediately following the completion of 7 years of age of child. Bonuses: This is a with-profits plan and participates in the profits of the Corporation’s life insurance business. Simple Reversionary Bonuses are declared per thousand Sum Assured annually at the end of each financial year. 7 years after the expiry of .Product summary: This is an Endowment Assurance Plan available for children of less than 12 years of age. A Final (Additional) Bonus may also be payable provided policy has run for certain minimum period. quarterly or monthly throughout the term of the policy or till earlier death of child. Premiums: Premiums are payable yearly. Once declared.

policy term). Besides payment of Sum Assured immediately on death. one-fourth of Sum Assured is payable at the end of each of last four years of policy term whether the life assured dies or survives the term of the policy.A. Options: You may choose Sum Assured (S.Jeevan Chhaya Product summary: This is an Endowment Assurance plan that provides financial protection against death throughout the term of the plan. Maturity Age. quarterly. Premiums: Premiums are payable yearly. quarterly or through Salary deductions over the term of policy. LIC . LIC . Mode of Premium payment and Premium Waiver Benefit. A number of Survival benefits are payable on surviving by the life assured to the end of the specified durations. Payment of Premium: You may pay the premiums regularly at yearly. half-yearly. half-yearly. Policy Term. monthly or through salary deductions as opted by you throughout the term of the policy or till the earlier death. Premiums may be paid either for 6 years or up to 5 years before the policy term.).Child Future Plan .

Premiums may be paid either for 6 years or up to 5 years before the policy term. Payment of Premiums: You may pay the premiums regularly at yearly. Mode of Premium payment and Premium Waiver Benefit. A number of Survival benefits are payable on surviving by the life assured to the end of the specified durations. half-yearly. Maturity Age. Policy Term.Introduction: This plan is specially designed to meet the increasing educational. LIC . marriage and other needs of growing children. Options: You may choose Sum Assured (S.A.Jeevan Shree Product summary: This is an Endowment Assurance plan offering the choice of many convenient premium-paying terms.e. quarterly or through Salary deductions over the term of policy. . It provides the risk cover on the life of child not only during the policy term but also during the extended term (i.). 7 years after the expiry of policy term). It provides financial protection against death throughout the term of plan with the payment of maturity amount on survival to the end of the policy term.

250/-. monthly or through Salary deductions.Premiums: Premiums are payable yearly. LIC – Amulya Jeevan : On Death during the Term of the Policy: Sum Assured On Maturity: Nil . considering the increased longevity of the Indian population. the Corporation has amended the above provision. Alternatively premium may be paid in one lump sum. as opted by you. LIC . half-yearly. throughout the premium paying term or till earlier death. Guaranteed Additions: The policy provides for the Guaranteed Additions at the rate of Rs. 50/. If the payment of premium ceases after 3 years. Such reduced paid-up policy is not entitled to participate in the bonus declared thereafter but the bonuses already declared on the policy will remain attach.per thousand Sum Assured for each completed year for first five years of the policy. provided the policy is converted in to a paid-up policy after the premiums are paid for 5 years. a paid-up policy for such reduced sum assured will be automatically secured provided the reduced sum assured exclusive of any attached bonus is not less than Rs. However. quarterly.The Whole Life Policy This plan is mainly devised to create an estate for the heirs of the policyholder as the plan basically provides for payment of sum assured plus bonuses on the death of the policyholder.The premiums under the policy are payable up to age 80 years of the policyholder or for a term of 35 years whichever is later. thereby providing for payment of sum assured plus bonuses in the form of maturity claim on completion of age 80 years or on expiry of term of 40 years from date of commencement of the policy whichever is later.

100.00. Half-yearly & Single Premium ORGANIZATION STRUCTURE OF LIC Chairman Managing Director Executives Directors Chiefs Zonal Managers .000/: No Upper Limit (Policies will be issued in multiples of Rs.25.RESTRICTIVE CONDITIONS Minimum age at entry Maximum age at entry Maximum age at maturity Minimum Policy Term Maximum Policy term Minimum Sum Assured Maximum Sum Assured : 18 years (completed) : 60 years (nearest birthday) : 70 years (nearest birthday) : 5 years : 35 years : Rs.000/.for Sums Assured more than the minimum Sum Assured) Mode of premium payment : Yearly.

Crisis Management Department 3. Communication Department 2. Namely: 1.Regional Managers Divisional Managers 100 Seniors Divisional Managers Marketing Managers Sales Managers Senior Branch Managers (Head of the Branch) Assistant Branch Managers Sells Development Officers Different Agen PUBLIC RELATION DEPARTMENT The Public Relation Department in LIC is divided into three major categories. Publicity Department Chief Public Relation Officer .

M. 3. The above three committees are under the PRO. 5.PRO (Communication Dept. The PRO is responsible for the overall functioning of the PR department. V. Should know how to behave in a certain situation.) CHIEF PUBLIC RELATION OFFICER The Chief Public Relation Officer of LIC is Mr. he is representative. He heads the PR department. Should know how to create enthusiasm. In crisis he has to give feedback as soon as possible. He is not a person. He has to monitor the smooth functioning of the three departments. RESPONSIBILITIES OF CHIEF PUBLIC RELATION OFFICER :1. 2.) PRO (Publicity Dept. 4. PR represents whole organization.) PRO (Crisis Management Dept. . Kulkarni.

He looks after:• Arranging press conferences. • Also he has to keep in close touch with the over-seas PR departments of LIC. Vijayan. T. • Since a major share of workload of LIC is in the public sector. . press releases and is in constant contact with the media. • All the policies implemented in India are informed to other PROs of the over-seas branches of LIC. • The PRO also has to provide information about latest policies to the communication department and ask them to public or air it through various mediums.S. • The PRO also holds regular workshops for the top management employees to motivate them to lift the spirit of the work culture. • The PRO looks after all the activities of the three departments all over India. COMMUNICATION DEPARTMENT The PRO of this Department is an external PR.OBJECTIVES AND FUNCTIONS OF CHIEF PUBLIC RELATION OFFICER:- • The PRO is directly answerable to the Chairman Shri. the PRO has to look after social responsibility as well as maintaining the image of the company. • The new rules and regulations in India are informed to the PROs of the over-seas branches. • The PRO monitors the norms and values of all the branches.

CRISIS MANAGEMENT DEPARTMENT The PRO in this department is an internal one. PRO. • He also has to motivate the employees in his department for constant progress in the strategies for communication. In short.• He is also responsible for monitoring the overseas communications. • The Communication Department PRO has to make arrangements for the guests and their overall honors. the communication Department PRO ensures that there is no communication gap between the company and the external concerned bodies. it is seen that the company has never been into any major crisis. PRO has to also be in a close contact with the government officials. • The Press conference usually includes the CEO of the company. • The PRO from this department should always keep a close eye on the latest happenings in the market. the Chief PRO and the Communication Dept. This itself . The conversations with the guests are directly done by the Communication Department PRO. then only is the Crisis management Dept PRO present for the Press conference. the Communication Dept. (recent press releases of LIC issued by Communication Department PRO enclosed)…. • He reports directly to the Chief PRO of the company. • Since LIC is closely related with the Public Sector. • If the case is of crisis. From the overall history of LIC. Any social issue at any area is a news to be worked out for him.

The PRO from crisis management. restricting such practices is very difficult task. Thus the sales of LIC went down as people liked the idea of Life more than Death. PUBLICITY DEPARTMENT The PRO of the publicity Department is an External PR. the ads shown by LIC always said “no worry even after death”. sales executives and sales and marketing employees. This department was formed due to the fall of sales in the 1999. • Building up a smooth communication between the Blue Collar and the White Collar. • Arranging small workshops for all the employees. Hence a separate publicity department was formed which worked only for publicity strategies. And regular workshops help to restrict cases like Corruption. Initially it was looked up by the Communication Department. The strategy used by the PR here for crisis management is:“Wash the utensil before having food in it.” Thus all the employees right from the day of joining are kept in close contact with the Crisis Management Dept. All the ads portrayed death. This fall was due to the emergence of the foreign insurance companies and their advertising strategies. With a company so closely associated with the government. He is answerable to the Chief Public Relation Officer. Initially. • Motivating the lower employees. he has been assigned many other internal responsibilities. The other insurance companies came up with the idea that insurance is for happy life. • He also has to know the issues going within the other departments so that these issues are solved before they create crisis. though is here to handle crisis.is one of the best achievements. .

The very recent campaign is known as “Zindagi Express”. The PRO is the one who along with the Marketing department looks after the strategies for publicity. and when any person has done a lot in his life. Thus Zindagi Express is an Autobiography by LIC. he is capable of writing an Autobiography.Today the publicity department PRO has to see to it that all the ads running are creating effect. Just as humans celebrate their 50 years of life. They had started this unique campaign of auto biography from Delhi and will cover the entire nation and end up in Delhi again. The Zindagi Express is a term that has been associated to the life of LIC. He is also to carry out various campaigns. even LIC is celebrating its life. During this journey they explain what all LIC has done for publics and what all it still intends to do .

To satisfy the consumers in lic they make effective public relations and consumer relations Chapter 6 .

ANALYSIS OF LIC A proper S. Products cost are very low.T.O.S.O. and upcoming future and prospective of the company. Long-term plans of LIC are the main strength.O.W. analysis of LIC has also been conducted to know better about the position.T. growth.W. • • . STRENGTHS: • • LIC is on 1st rank among the Insurance player. After sales services.T Analysis S.W.

WEAKNESS: • Low interest rate OPPORTUNITIES: • • Good brand promotion. Entry of Private Insurance banks. 1/2nd.• Customer does not believe on private company. Chapter 7 Subject matter .% insurance has been covered. THREATS: • • Competitors.

Introduction of topic Research methodology Subject matter Introduction of topic What is customer satisfaction? Customer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency. The level of satisfaction is determined not only by the quality and type of customer .

Customer centric organizations will: • determine the customers expectations when they plan • listen to the customer as they design • focus on the delivery of customer service activities • Value customer feedback when they measure performance. Why is it important? There are a number of reasons why customer satisfaction is important in Insurance Sector: • Meeting the needs of the customer is the underlying rationale for the existence of community service organizations. Customers in human services are commonly referred to as service users. A customer may be defined as someone who: • has a direct relationship with. consumers or clients. planning and service delivery. • An organization with a strong customer service culture places the customer at the centre of service design. • Organizations that strive beyond minimum standards and exceed the .experience but also by the customer’s expectations. or is directly affected by your agency and receives or relies on one or more of your agency’s services or products. Customers have a right to quality services that deliver outcomes.

It is seen as a key performance indicator within business and is part of the four of a Balanced Scorecard. • Customers are recognized as key partners in shaping service development and assessing quality of service delivery.expectations of their customers are likely to be leaders in their sector. The level of satisfaction can also vary depending on other factors the customer. customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. In a competitive marketplace where businesses compete for customers. is a measure of how products and services supplied by a company meet or surpass customer expectation. Measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. such as other products against which the customer can compare the organization's products. .Customer satisfaction. a sinebuss term. Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The process for measuring customer satisfaction and obtaining feedback on organizational performance are valuable tools for quality and continuous service improvement.[1] There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms.[2]. Organizations need to retain existing customers while targeting non-customers. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate.

.

Customer Satisfaction in 7 Steps in LIC .

confident and above all. Even if you're not able to solve a problem right away. It might not always be practical to deal with all customers' queries within the space of a few hours. it does get easier over time. When you do meet them. What follows are a selection of tips that will make your clients feel valued. customer service is of vital importance. Respond to Messages Promptly & Keep Your Clients Informed This goes without saying really. Rest assured. it's important to work closely with your customers to make sure the site or system you create for them is as close to their requirements as you can manage. though. be calm. take time to ask them what they need. My experience has shown that a client finds it easier to relate to and work with someone they've actually met in person. let the customer know you're working on it.It's a well-known fact that no business can exist without customers. I believe that if a potential client spends over half the meeting doing the talking. . 1. 2. wanted and loved. rather than a voice on the phone or someone typing into an email or messenger program. We all know how annoying it is to wait days for a response to an email or phone call. Because it's critical that you form a close working relationship with your client. but at least email or call them back and let them know you've received their message and you'll contact them about it as soon as possible. you're well on your way to a sale. Encourage Face-to-Face Dealings This is the most daunting and downright scary part of interacting with a customer. In the business of Website design. If you're not used to this sort of thing it can be a pretty nerve-wracking experience. It's important to meet your customers face to face at least once or even twice during the course of a project.

who should they tell? There's nothing more annoying for a client than being passed from person to person. and I at least knew they were doing something about the problems. There will be times when you want to beat your clients over the head repeatedly with a blunt object . It's very important to be friendly. 4. At every step along the way I was emailed and told exactly what was going on. Be Friendly and Approachable A fellow Site Pointer once told me that you can hear a smile through the phone. what should they do? If the first option doesn't work. it didn't seem so bad. But because they took time to keep me informed. which was nice. That to me is a prime example of customer service.it happens to all of us. They've had some trouble with server hardware which has caused a fair bit of downtime lately. respond to your clients' wishes as best you can. and at all times remain polite and courteous. courteous and to make your clients feel like you're their friend and you're there to help them out. If a customer has a problem. and how long it would be before they were working again. This is very true. Now if they server had just gone down with no explanation I think I'd have been pretty annoyed and may have moved my business elsewhere. but a clearly defined customer service policy is going to save you a lot of time and effort in the long run.A good example of this is my Web host. 3. They also apologised repeatedly. Have a Clearly-Defined Customer Service Policy This may not be too important when you're just starting out. then what? Should they contact different people for billing and technical enquiries? If they're not satisfied with any aspect of your customer service. It's vital that you keep a clear head. or not knowing who to turn to. Making sure they know exactly what to do . why things were going wrong.

it makes the customer feel welcomed. and most importantly. wanted and valued.and anywhere else it may be useful.at each stage of their enquiry should be of utmost importance. Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out Sometimes this is easier said than done! However. but remember to do them. 5. achieving this supreme level of understanding with your clients will do wonders for your working relationship. During a meeting with your client he/she happens to mention a hard-copy brochure their internal marketing people are developing. 6. originals and files backed up on your desktop computer and the site is going really well. Attention to Detail (also known as 'The Little Niceties') Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalised sign-up confirmation email for a service that you could tell was typed from scratch? These little niceties can be time consuming and aren't always cost effective. You have all the images. Take this as an example: you're working on the front-end for your client's exciting new ecommerce endeavour. it's something. As if by magic. It shows you care. it shows there are real people on the other end of that screen or telephone. Even if it's as small as sending a Happy Holidays email to all your customers. a couple of weeks later a CDROM arrives on their doorstep complete with high resolution versions of all the images you've used on the site. So make sure your customer service policy is present on your site -. A note accompanies it which reads: .

you lay back in your chair drinking your 7th cup of coffee that morning. The most common example here is project delivery dates. something may not get done. or you might miss a deadline through no fault of your own. and remarks to his colleagues and friends how very helpful and considerate his Web designers are. Clients don't like to be disappointed. Hopefully you'll be able to make use of some in your brochure. technology can fail and sub-contractors don't always deliver on time."Hi. Honour Your Promises It's possible this is the most important point in this article. 7. safe in the knowledge this happy customer will send several referrals your way. you mentioned a hard-copy brochure you were working on and I wanted to provide you with large-scale copies of the graphics I've used on the site. What would you want from your business if you were the client? How would you want to be treated? Treat your customers like your friends and they'll always come back. in your office. The simple message: when you promise something. like any aspect of business. Meanwhile. In this case a quick apology and assurance it'll be ready ASAP wouldn't go amiss. . Projects can be late. is a practiced art that takes time and effort to master. Conclusion Customer service. Sometimes." Your client is heartily impressed. deliver. All you need to do to achieve this is to stop and switch roles with the customer.

(This research is fully based on secondary data ) . magazines. novels. The published research reports and market studies also helped the researcher to guage into the problem. publications and various websites including the official website of LIC and various other company websites.Research Methodology : Secondary data is collected from various bibliographical sources such as journals.

Chapter 8 DATA ANALYSIS AND INTERPRETATION .

DATA ANALYSIS AND INTERPRETATION CUSTOMERS PRECEPTION TOWARDS SERVICES LIC 50% HDFC 30% ICICI 20% OTHRS 10% ( LIC IS HAVE MORE CUSTOMERS RATHER THAN OTHERS) CUSTOMERS RELATIONSHIP DEPARTMENTS .

LIC 40% HDFC 30% ICICI 20% OTHRS 10% (IN LIC CRM DEAPARMENTS MOST TO SATISFIED THE CUSTOMERS) PUBLIC RELATIONS .

LIC 40% HDFC 30% ICICI 20% OTHRS 10% IN LIC MOSTLY CENCENTRATE ON PUBLIC RELATIONS LIC POLICIES AND BETTER PLANS .

LIC 50% HDFC 30% ICICI 20% OTHRS 10% LIC IS ONE OF FIRST INSURANCE COMPANY WHICH PROVIDE MORE SERVICES Project Analysis .

LIC has the world’s largest sales force.The Positive side of LIC as well as Negative side of LIC. of India. 3. LIC is the only Life Insurance Company making profits. 4. Check IRDA website in the Annual Report column. Mind boggling. I encourage other readers to correct me if I am wrong and also add light to any point that I may have missed. Again. The point is that if an insurance company makes losses year over year. . LIC is owned by the government and therefore it is the only company besides the PPF that has the sovereign guarantee of the govt. Imagine having an Asset base of over Rs 6 Lac Crore. leans on LIC every time that the Stock Market crashes. A sales force of over 1 million! Truly a remarkable achievement. so many people who die of starvation. Most of the Private Insurers including the self proclaimed market leaders like ICICI and Bajaj Allianz are booking heavy losses. It is a different story that today LIC has become so powerful that the govt. so many people who don’t have access to basic medication. in a poor country like India where there are so many people living below the poverty line. That’s a 14 digit number! No company in India can boast of such figures. 2. My point is. again LIC is Number One with the claims settlement ratio of more than 99%. Private Insurers cannot match LIC’s ability on claims settlement. Many people argue that LIC has not been able to penetrate the market as it has insured only 15% of the population. First let’s talk about the Positive side of LIC 1. so many . 5. then how will they manage to pay the Claim amount? After all no Insurance company is here to do charity business. When it comes to paying claims. please visit IrDA’s website to see the claims settlement performance of various companies. yes over 10 lac agents and now universities in western countries are trying to study how a company managed to appoint such a large sales force.

Chapter 7 . At a personal level i feel that LIC has done a satisfactory job of insuring people. Will such a person first feed his children or buy Insurance ? Lets not forget that a majority of the Indian population is poor and a substantial percentage is living below the poverty line. shelter. education and clothing.people who don’t have basic necessities of life like food.

Recommendations and Suggestions Recommendations .

The Administrative staff in LIC is in deep slumber.D. If you ask the Branch Manager for . Try writing a complaint to them and they wont even bother to reply back.C # NOW THE NEGATIVE POINTS OF LIC # 1.TO CONVERT ALL NEGATIVE POINT IN POSITIVE TO SIT IN FIRST LEVEL IN INSURANCE AREAS FOREVER AND IMPROVE Q.

Vile Parle East. Whats the use ? In the suburbs where most of the people reside. Its a pity ! 4. Santacruz East. Their only mantra at an Agents meeting is "Friends. This is very disturbing. If an Agent complains against any staff. they are not systematically located. Khar East & West. Matunga. Competitions for Agents are held with Prizes being offered on the number of policies sold and not on the number of lives insured.5kms. LIC has no branches in Bandra East. Yes this is true even in a city like Mumbai. Therefore many Agents are tempted to split the policies in order toget better prizes. the office is flooded with forms & sales literature. Even the Senior level managers cannot make effective presentations or design a sales strategy. they wont know. If LIC gives a thought to systematic relocation of its offices. 2. . there are no branches at all. it will immensly help the policyholders. But surprisingly just a week before any scheme is about to close. bring more policies!’. In order to show a better performance & achieve branch Targets. However if an agent wants the forms or sales literature. As I earlier said. This not only adds to the inconvinience of the policyholders but it also increases the expenses of LIC. LIC has more than 20 branches within a radius of 1. Managers having designations like Marketing Manager or Sales Manager donot have the capability to motivate an audience at a meeting.Mahim. Agents are motivated by the Managers to split the policies.the complaints book. Though LIC has more than 2000 branches. he probably wont have it in place. Jogeshwari West. most of the time its out of stock. In Mumbai’s Fort area. etc. 3. LIC is lacking in Effective Leadership in recent times. If you ask them howto bring more policies. Andheri West.then the Agent is black listed and next time onwards his work is not done.

5. Even though LIC claims to have taken several initiatives in the IT sector, policyholders still face problems in revival of their policies, payment of premium in several branches, change of mode, change of address, etc. The After-sales policy services department needs to be revamped. Policyholders feel that LIC agents are humble while selling a policy and thereafter they fail to provide any service to the client. The truth is that LIC is so weak in policy services department, that even a good agent finds it difficult to get the work done from the administrative staff. To sum up, i would say that LIC will never cheat a Policyholder in payment of claim, but at the same time everyone will agree that LIC is not responsive to the needs of the customer. If you have purchased an LIC policies then dont forget to pay the premium on time, and when your policy gets matured LIC will honestly pay your Maturity amount on time. The employees are sometimes rude in their behaviour with the Policyholder. If a claim cheques is handed over by a courteous and smiling employee of LIC, it will enhance the image of LIC in the mind of the policyholder. Today LIC is not just an Insurance Company, LIC is a Movement, LIC is a Cult, LIC is a Religion. Imagine 10 lac agents and 1 lac employees serving 16 crore policyholders in India. You cannot deny that LIC has become the way of life in India. Daily you can hear someone or the other talking of LIC in local trains, at fish markets, at restaurants, on News Channels, in your own offices, etc. As i earlier said, LIC has started lacking in effective leadership. If a company like LIC starts sponsoring irrelevant awards like Zee Cine awards which it had done 2 years ago, then it will send the wrong message in the minds of the policyholders. Imagine India’s most famous institution sponsoring a Cine Awards function stating that it was done to increase the brand awareness of LIC. That sounded like a big joke. It is time that the top level officials of LIC come out of their air-conditioned

cabins and travel by public transport for sometime in order to feel the pulse of the common man.

Why LIC is trusted brand of India?
1. As a Govt of India owned Company, LIC is 51 + years old in the field of life insurance and money management. LIC's Life Fund size as on day is more than Rs 5 Lakh Thousand Crores ! 2. Any LIC policyholder or the nominee will vouch for the best claims settlement from LIC. Perhaps, this is the only institution where you as a policyholder are virtually chased till such time your claim cheques is handed over to you ! 3. LIC has won `NDTV Profit Leadership Award 2007 under Life Insurance Category', `Outlook Money Award 2007 as the best Life Insurer', `CNBC Awaaz Consumer Award 2007 as the best Life Insurance Company', `Golden Peacock Award for excellence in Corporate Governence 2007', `Web 18 Genius of the Web Award 2007 and many more'. 4. LIC adjudged No.1 Trusted Service Brand for the 4th successive year by ET Brand Equity Survey. 5. LIC has been adjudged Superbrand India for 2004-06 and Reader's Digest `Trusted Brand' Asia 2007. 6. This is the only corporation that is catering to more than 190 million satisfied policyholders in India and abroad. 7. This is one of the very few institutions that pays ex-gratia interest on pending maturity claims ! 8. More than 2050 LIC branches all over India are connected together to serve you. You can pay your premium anywhere in the country.

9. During its long existence, LIC has kept on updating its portfolio by bringing in new plans depending on public requirement. More than 50 of them are most popular and can be customized to meet any of your requirements. LIC ULIPs have become extremely popular due to the returns they offer. Money Pluslatest LIC Unit Linked Plan is a case in point. 10. All LIC Plans come with Sovereign Guarantee i.e., Govt of India Guarantee regarding repayment. Infact, as of now, only LIC plans enjoy this Govt Guarantee. Beneficiary for this Sovereign Guarantee is you and you alone as the policyholder/ would-be policyholder. 11. All LIC plans are characterized by low premium, high life insurance coverage and a vast package of benefits offered by them. Add to this package, section 80C benefit and section 10(10D) benefit on the maturity proceeds, you will find investment on LIC plans one of the most coveted investment options available to you. 12. Premium paid under Key-Man Insurance plan is a recognized business expense under section 37(I) of the Income-Tax Act. For companies making profits, this is a very good incentive indeed. 13. Through Employer-Employee Insurance scheme, you can recognize the worth of your most valuable employees whose absence you can ill afford to loose. 14. Entire contribution to LIC Group Gratuity Scheme is a recognized business expense in the hands of the employer. In addition, through this scheme, the employer can transfer his gratuity liability to the corporation and fund the same under cash accumulation scheme. The most popular among all the companies. 15. LIC is declaring quite an impressive bonus (profits) on all its with-profits policies every year. Extra attraction under LIC Bonus is (a) it is calculated every year on the insured amount and not on the premium paid and (b) entire

On most of the LIC plans. you can borrow to take care of your immediate monetary requirements. You can pay your premium 3 years in advance at 5% discount. BEST IT USER IN INDIA (NASSCOM – 2003). SUPER BRAND & MOST TRUSTED SERVICE BRAND OF INDIA. Infact. LIC pension plans that guarantee you life pension are extremely popular. You can park your hard earned money safely with the corporation and enjoy pension as long as you are alive. 16. None of the policy benefits get affected as a result of borrowal. 19. policy loans offer one of the most attractive investment opportunities. 17. Most of the LIC plans come with Riders to take care of Total and Permanent Disablement due to Accident and some of the most dread diseases that may result in loss of income. INSURING LIVES AND ENSURING SMILES from more than 50 Years. Chief attractions of this advance payment of premium are (a) there is no possibility of your overlooking your premium payment and getting your policy(ies) lapsed wherever you are in the world and (b) you will be earning 5% tax-free interest on the unutilized portion of the amount left with LIC after apportioning the regular installment. Due to these reasons and lot more. LIC should be your obvious choice for all your life insurance requirements. . LIC is India’s most trusted brand. 18.bonus received along with insured amount either by you on maturity of your policy(ies) or by your nominee in your absence during the currency of your policy(ies) is free from income-tax under section 10(10D) of the Income-tax Act.

LIC Mutual Fund.2.048 branch offices (all computerized) of which 2019 are networked ”From all above we can say our money is safe and secure with assured returns. Offers over 45 plans to cover your life at various stages Over 160 million customers and 1. It has underwritten more than 160 million policies. LIC is the largest life insurer of India Asset value as on 31. National Insurance Academy.673. (Source: Asian Investor) LIC .3.2004: 3.An Institution Builder promoting many financial and insurance institutes like NSE.Largest Institutional Investor in India and Second largest in Asia among insurers. Stock Holding Corporation of India.598.1 million agents. Insurance Institute of India etc.” . NCDEX.4 mn (INR).

Plan no.Finding Product offered to customer  Children's Policy Komal Jeevan .Plan no.88 New JanaRaksha Policy . 159 Children Deferred .133  Group Insurance Policy Janashree Bima Yojana Group Insurance Scheme in lieu of EDLI Group (Term) Insurance Scheme Group Savings Linked Insurance Scheme Group Superannuation Scheme Group Mortgage Redemption Assurance Scheme  Joint Life Policy Jeevan Saathi .Plan no.93 .91 Jeevan Anand Plan no.41 Jeevan Kishore .Plan No.Plan No. 149 Jeevan Mitra Triple Cover .Plan no.Plan no.Plan no.48 Jeevan Mitra .Plan no.Plan no.Plan no.75 New Money Back .103 Marriage Endowment/Educational Annuity .89  Money Back Policy Money Back with Profit .Plan no.Plan no.102 Jeevan Chhaya .Plan no.14 Limited Payment Endowment with Profits . 90 Jeevan Anurag .168  Endowment Policy Endowment with Profits .

52 Jeevan Aadhar .108 Jeevan Bharati Plan No 160 Jeevan Samriddhi Plan No 154.Plan no. 163 Jeevan Nidhi Plan no. 167 Bima Nivesh 2005 Plan No 171 Money Plus-Plan No 180  Term Policy Convertible Term Assurance . 169 Jeevan Akshay V Plan no.114 Market Plus .Plan no. 165 Jeevan Pramukh Plan No. 155.Plan no.164 Amulya Jeevan-Plan No-177 Service Quality .107 Jeevan Surabhi 25 yrs .Jeevan Surabhi 15 yrs . 147 Jeevan Akshay II Plan no.148 New Jeevan Suraksha Plan no. 183  Special Plans Term Assurance .Plan no.Plan no.Plan no.Plan No 181 Jeevan Vishwas Plan No. 136 Jeevan Saral Plan No.58 New Bima Kiran Term Assurance Anmol Jeevan I Plan No.Plan no.106 Jeevan Surabhi 20 yrs .Plan no.Plan no.175  Pension Plans or Annuities New Jeevan Dhara .43 Mortgage Redemption . 156 157 Bima Bachat.

Survival Benefits.Your Policy Bond And Its Safety Your Policy Number Policy Conditions Alterations In Policy If Your Policy Is Lost Your Contact Address – Keep Us Posted Without Fail Admission Of Age Nomination Assignment When To Pay The Premiums Grace Period For Premium Payment How And Where To Pay The Premiums Policy Status – Where Available Revival Of Lapsed Policies Availing Loans On Policies Surrender Value Maturity. Disability And Death Claims Policies Under Salary Savings Scheme Helpline .

Chapter 9 Conclusion .

Hence. doctrinal precision. military and psychological results. So all policies and plan toally satisfied the customers. a civil affairs approach and high levels of training are critical. Units have demonstrated that with a balanced training focus and proper preparation. is also great. . force precision. even with limited forces. Therefore the counterinsurgent must also focus on the population to be successful. the target of the insurgent’s violence and coercion is the population. Peacetime Contingency Operations and conduct training as usual. will lead us to a possibly fatal false sense of security. precision engagement. LIC is not conventional warfare. In addition. the counterinsurgent must counter all of these strategic elements individually. This is critical for the counterinsurgent to understand. integrated communications.Conclusion After Finding’s we can see about LIC features and his The tendency to take the expedient approach and focus on the far right of the LIC spectrum. combined arms. professionalism. restraint. effective population based intelligence. Instinctive behavior and ingrained training must be adjusted to fit new circumstances. In terms of military principles in counterinsurgency. The probability of becoming involved in a LIC operation is high. independence. The insurgent’s violent and coercive strategy is applied so as to achieve political. many pitfalls outlined above can be avoided. civil. while briefing that the LIC block has been checked. initiative. The potential to attract international attention. This is because the population is the centre of gravity in LIC. joint force. STXs must be developed locally or borrowed from units who have already been through the training.

Chapter 10 BIBLIOGRAPHY .

com(recummented) www.indiainfoline.google.BIBLIOGRAPHY Important websites –    www.com  www.com www.licindia.com Books And Magazines  Yogkshem –Lic Magazine    Outlook Express Business today Finance & Banking  Money Outlook News Paper  Business standard  Times of India  Economic times  Hindustan times .textindia.