A

COMPANY TRAININIG REPORT

ON
“AN ANALYTICAL STUDY OF SAVING SCHEME”
COMPLETED IN
"LIC OF INDIA"

SUBMITTED IN THE PARTIAL FRLFILLMENT OF REQUIREMENT FOR THE

DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (BBA),GURU
JAMBHESHWAR UNIVERSITY OF SCINCE & TECHNOLOGY,HISAR(HARYANA)

B.B.A.

(2007-2010)

SUPERVISED BY: - SUBMITTEDD BY:-

MR. SURJEET BISHNOI Ms. DEEPENDRA
HOD OF MANAGEMENT SINGH PARMAR
SCMIT,SIKAR (RAJ.) BBA FINAL YEAR
E/NO-:
07511505007

SUBMITTED TO:-
DIRECTORATE OF DISTANCE
EDUCATION
GURU JAMBHESHWAR UNIVERSITY OF SCIENCE & TECHNOLOGY
HISAR(HARYANA)125001
1
 DIRECTORATE OF DISTANCE EDUCATION
GURU JAMBHESWAR UNIVERSITY OF
SCIENCE & TECHNOLOGY, HISAR
(HARYANA) 125001

RESUME OF SUPERVISOR

NAME MR. SURJEET BISHNOI

DESIGNATION LECTURER, HOD

QUALIFICATION B.Sc, MBA & UGC-NET

AREA OF SPECIALIZATION MARKETING

EXPERIENCE 6 YEARS

OFFICIAL ADDRESS SCMIT,SIKAR

CONTRACT NO. +919414581356

E-MAIL surjeet_bishnoi@yahoo.com

DATE (SIGNATURE)

2
 DECLARATION

I do hereby declare that this piece of project report entitled “An Analytical
Study of Saving Scheme at LIC” practices in “LIFE INSURANCE
CORPORATION OF INDIA” for partial fulfillment of the requirements from the
award of the degree of “BBA” is a record of original work done by me under the
supervision & guidance of Ms. Surjeet Bishnoi , Shekhawati College of
Information & Technology, Sikar(Raj.).This project work is a confide work
done by me & has neither submitted nor published elsewhere.

Place: Signature
Date:

3
 ACKNOWLEDGEMENT

At The Outset

Summer training is one of the most vital and active part of the curriculum of
management students. Its basic idea behind this is to strengthen the student’s
concept through practical training and make them acquainted with actual method
and procedures.

I did the work as a management trainee at LIC for a period for 01-01-2010 to 14-
02-2010. I would like to extend my heartfelt gratitude to Mr. Ramhet Prasad
Chief Life Insurance Advisor at LIC, Dholpur for his proper guidance
throughout the project. Without her support and cooperation I would have failed in
my endeavors and targets in the summer training.

I am greatly intended to my guides Mr. Surjeet Bishnoi (HOD OF

MANAGEMENT),Shekhawati College Of Management and Information
Technology,Sikar(Raj.) for their constant guidance, advice & help which
enabled me to finish this project report.

DEEPENDRA PARMAR

(SIGNATURE)

4
 PREFACE

Someone has rightly said that practical experience is far better and closer to the
real world then mere theoretical exposure. The practical experience helps the
student to view the real business world closely,which in turn widely influences his
perceptions and understanding of the real situation.

Research work constitutes the backbone of any management education program. A

management student has to do research work quite frequently during his entire
span.

The research work entitled "An Analytical study of Saving Scheme at LIC"
Completed in " LIFE INSURANCE CORPORATION OF INDIA" aims
to know customer awareness regarding LIC.

The present report is a part of the project that contains the work done by me
during the training period of LIC OF INDIA, Dholpur(Raj.).

True to the core, a properly and executed industrial training helps a lot in
understanding of the mode of operation of industrial organization.

The project has offered me an opportunity to put all my efforts and

the theoretical knowledge to practice and enhance my knowledge,
and at the sure time given me practical experience in the field of
marketing. It is surly going to help me in future projects too.

In the preparation of this report, I have made every effort to ensure that all steps
completed in it. Any suggestions for improvement, will be gratefully accepted.

I sincerely hope that this will prove pure knowledge imparting, through provoking
and thus stimulating future research work on these guideline.

5
 EXECUTIVE SUMMEARY

In today’s corporate and competitive world, I find that insurance sector has the maximum
growth and potential as compared to the other sectors. Insurance has the maximum growth rate
of 70-80% while as FMCG sector has maximum 12-15% of growth rate. This growth potential
attracts me to enter in this sector and LIFE INSURANCE CORPORATION (LIC). has given me
the opportunity to work and get experience in highly competitive and enhancing sector.

Agents are the only way for a company of Insurance sector through which policies and benefits
of the company can be explained to the customer.
The life insurance industry in India grew by an impressive 47.38%, with premium income at Rs.
1560.41 billion during the fiscal year 2006-2007. Though the total volume of LIC's business
increased in the last fiscal year (2006-2007) compared to the previous one, its market share came
down from 85.75% to 81.91%.

The 17 private insurers increased their market share from about 15% to about 19% in a year's
time. The figures for the first two months of the fiscal year 2007-08 also speak of the growing
share of the private insurers. The share of LIC for this period has further come down to 75
percent, while the private players have grabbed over 24 percent.

With the opening up of the insurance industry in India many foreign players have entered the
market. The restriction on these companies is that they are not allowed to have more than a 26%
stake in a company’s ownership.

Since the opening up of the insurance sector in 1999, foreign investments of Rs. 8.7 billion have
poured into the Indian market and 19 private life insurance companies have been granted
licenses.

Innovative products, smart marketing, and aggressive distribution have enabled fledgling private
insurance companies to sign up Indian customers faster than anyone expected. Indians, who had
always seen life insurance as a tax saving device, are now suddenly turning to the private sector
and snapping up the new innovative products on offer. Some of these products include
investment plans with insurance and good returns (unit linked plans), multi – purpose insurance
plans, pension plans, child plans and money back plans.

6
 CONTENTS
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
INTRODUCTION OF INDUSTRY
INTRODUCTON OF ORGANIZATION
MILESTONES OF LIFE INSURANCE BUSINESS IN INDIA
GENERAL INSURANCE CORPORATION OF INDIA
MILESTONES IN GENERAL
INSURANCE BORAD OF DIRECTORS
OF LIC
KNOW ABOUT OUR LIFE
INSURANCE OPERATE ALL OVER
INDIA
ADMISSION OF AGE
MISSION & VISION OF
LIC OBJECTIVE OF LIC
AWARDS OF LIC
SAVING SCHEME OF LIC
PROCUCTED OFFERED TO CUSTOMER BY
LIC JEEVAN AKSHAY PLAN
BENEFITS OF PLAN
JEEVAN SARAL
POLICY SMALL SAVING
PAY ROLL SAVING SCHEME
BANK AND FINANCIAL
INSTITUTIONS RESEARCH
METHODOLOGY
DATA ANALYSIS &
INTERPRETATION CONCLUSION
SWOT ANALYSIS
APPENDIXES
QUESTIONNAIRE
REFRENCES & BIBLIOGARPHY
7
 INTRODUCTION OF INDUSTRY

The history of life insurance in India dates back to 1818 when it was conceived as a means to
provide for English Widows. Interestingly in those days a higher premium was charged for
Indian lives than the non - Indian lives, as Indian lives were considered more risky to cover.
The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company
to charge the same premium for both Indian and non- Indian lives.

The Oriental Assurance Company was established in 1880. The General insurance business in
India, on the other hand, can trace its roots to Triton Insurance Company Limited, the first
general insurance company established in the year 1850 in Calcutta by the British. Till the end of
the nineteenth century insurance business was almost entirely in the hands of overseas
companies.

Insurance regulation formally began in India with the passing of the Life Insurance Companies
Act of 1912 and the Provident Fund Act of 1912. Several frauds during the 1920's and 1930's
sullied insurance business in India. By 1938 there were 176 insurance companies.

The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided
strict State Control over the insurance business. The insurance business grew at a faster pace
after independence. Indian companies strengthened their hold on this business but despite the
growth that was witnessed, insurance remained an urban phenomenon.

The Government of India in 1956, brought together over 240 private life insurers and provident
societies under one nationalized monopoly corporation and Life Insurance Corporation (LIC)
was born. Nationalization was justified on the grounds that it would create the much needed
funds for rapid industrialization. This was in conformity with the Government's chosen path of
State led planning and development.

The non-life insurance business continued to thrive with the private sector till 1972. Their
operations were restricted to organized trade and industry in large cities. The general insurance
industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped
into four companies- National Insurance Company, New India Assurance Company, Oriental
Insurance Company and United India Insurance Company.

8
These were subsidiaries of the General Insurance Company (GIC).
With the largest number of life insurance policies in force in the world, Insurance happens to be
a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and
presently is of the order of Rs 1560.41 billion (for the financial year 2006 – 2007). Together
with banking services, it adds about 7% to the country’s Gross Domestic Product (GDP). The
gross premium collection is nearly 2% of GDP and funds available with LIC for investments are
8% of the GDP.

Even so nearly 65% of the Indian population is without life insurance cover while health
insurance and non-life insurance continues to be below international standards. A large part of
our population is also subject to weak social security and pension systems with hardly any old
age income security.

A well-developed and evolved insurance sector is needed for economic development as it

provides long term funds for infrastructure development and strengthens the risk taking ability
of individuals. It is estimated that over the next ten years India would require investments of the
order of one trillion US dollars.

9
 INTRODUCTION OF ORGANIZATION

Life Insurance Corporation of India (LIC)

Life Insurance Corporation of India (LIC) was established on 1 September 1956 to spread the
message of life insurance in the country and mobilise people’s savings for nation-building
activities. LIC with its central office in Mumbai and seven zonal offices at Mumbai, Calcutta,
Delhi, Chennai, Hyderabad, Kanpur and Bhopal, operates through 100 divisional offices in
important cities and 2,048 branch offices. LIC has 5.59 lakh active agents spread over the
country.

The Corporation also transacts business abroad and has offices in Fiji, Mauritius and United
Kingdom. LIC is associated with joint ventures abroad in the field of insurance, namely, Ken-
India Assurance Company Limited, Nairobi; United Oriental Assurance Company Limited,
Kuala Lumpur; and Life Insurance Corporation (International), E.C. Bahrain. It has also entered
into an agreement with the Sun Life (UK) for marketing unit linked life insurance and pension
policies in U.K.

In 1995-96, LIC had a total income from premium and investments of $ 5 Billion while GIC
recorded a net premium of $ 1.3 Billion. During the last 15 years, LIC's income grew at a
healthy average of 10 per cent as against the industry's 6.7 per cent growth in the rest of Asia
(3.4 per cent in Europe, 1.4 per cent in the US).
LIC has even provided insurance cover to five million people living below the poverty line, with
50 per cent subsidy in the premium rates. LIC's claims settlement ratio at 95 per cent and GIC's
at 74 per cent are higher than that of global average of 40 per cent. Compounded annual growth
rate for Life insurance business has been 19.22 per cent per annum

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.

10
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.

11
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 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 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.

12
 MILESTONES OF LIFE INSURANCE BUSINESS IN INDIA

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.

13
 GENERAL INSURANCE CORPORATION OF INDIA (GICI)

The general insurance industry in India was nationalized and a government

company known as General Insurance Corporation of India (GIC) was formed by
the Central Government in November 1972. With effect from 1 January 1973 the
erstwhile 107 Indian and foreign insurers which were operating in the country prior
to nationalization, were grouped into four operating companies, namely, (i)
National Insurance Company Limited; (ii) New India Assurance Company
Limited; (iii) Oriental Insurance Company Limited; and (iv) United India
Insurance Company Limited. (However, with effect from Dec'2000, these
subsidiaries have been de-linked from the parent company and made as
independent insurance companies). All the above four subsidiaries of GIC operate
all over the country competing with one another and underwriting various classes
of general insurance business except for aviation insurance of national airlines and
crop insurance which is handled by the GIC.
Besides the domestic market, the industry is presently operating in 17 countries
directly through branches or agencies and in 14 countries through subsidiary and
associate companies.

14
 MILESTONES IN GENERAL INSURANCE

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 India Assurance Company Ltd., the Oriental
Insurance Company Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.

15
 BOARD OF DIRECTORS OF LIC

Members On The Board Of The Corporation

Shri. T.S. Vijayan (Chairman)

Shri. D.K. Mehrotra (Managing Director - LIC) Shri.

Thomas Mathew T. (Managing Director - LIC) Shri.

A.K. Dasgupta (Managing Director - LIC)

Shri. Ashok Chawla (Finance Secretary, Ministry of Finance, Govt. of India)

Shri. R. Gopalan (Secretary, Department of Financial Services, Ministry of

Finance, Govt. of India.)

Shri. Yogesh Lohiya (Chairman cum Managing Director, GIC of India)

Shri. S.Sridhar, Chairmain & Managing Director , Central Bank of India Dr.

Sooranad Rajashekhran

Shri. Monis R. Kidwai

Lt. General Arvind Mahajan ( Retd.)

Shri. Anup Prakash Garg

16
 KNOW ABOUT OUR LIFE INSURANCE

Life insurance in India made its debut well over 100 years ago.

In our country, which is one of the most populated in the world, the prominence of insurance is
not as widely understood, as it ought to be. What follows is an attempt to acquaint readers with
some of the concepts of life insurance, with special reference to LIC.

It should, however, 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.

For more details, please contact our branch or divisional office. Any LIC Agent will be glad to
help you choose the life insurance plan to meet your needs and render policy servicing.

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.

The contract is valid for payment of the insured amount during: The
date of maturity, or
Specified dates at periodic intervals, or
Unfortunate death, if it occurs earlier.
Among other things, the contract also provides for the payment of premium periodically to the
Corporation by the policyholder. Life insurance is universally acknowledged to be an
institution, which eliminates 'risk', substituting certainty for uncertainty and comes to the timely
aid of the family in the unfortunate event of death of the
breadwinner. By and large, life insurance is
civilisation's partial solution to the problems caused by death. Life insurance, in short, is
concerned with two hazards that stand across the life-path of every person:
That of dying prematurely leaving a dependent family to fend for itself. That
of living till old age without visible means of support.

17
Life Insurance Vs. Other Savings

Contrace Of Insurance:
A contract of insurance is a contract of utmost good faith technically known as uberrima fides.
The doctrine of disclosing all material facts is embodied in this important principle,
which applies to all forms of insurance. At the time of taking a policy,
policyholder should ensure that all questions in the proposal form are correctly answered. Any
misrepresentation, non-disclosure or fraud in any document leading to the acceptance of the
risk would render the insurance contract null and void.

Protection:
Savings through life insurance guarantee full protection against risk of death of the saver. Also,
in case of demise, life insurance assures payment of the entire amount assured (with bonuses
wherever applicable) whereas in other savings schemes, only the amount saved
(with interest) is payable.

Aid To Thrift:

Life insurance encourages 'thrift'. It allows long-term savings since payments can be made
effortlessly because of the 'easy instalment' facility built into the scheme. (Premium payment
for insurance is either monthly, quarterly, half yearly or yearly). For example: The Salary
Saving Scheme popularly known as SSS, provides a convenient method of paying premium
each month by deduction from one's salary. In this case the employer directly pays the
deducted premium to LIC. The Salary Saving Scheme is ideal for any institution or
establishment subject to specified terms and conditions.

Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy
that has acquired loan value. Besides, a life insurance policy is also generally
accepted as security, even for a commercial loan.

Tax Relief:
Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is
available for amounts paid by way of premium for life insurance subject to income tax rates
in force.
Assesses can also avail of provisions in the law for tax relief. In such cases the assured
in effect pays a lower premium for insurance than otherwise.

18
Money When You Need It:
A policy that has a suitable insurance plan or a combination of different plans can be
effectively used to meet certain monetary needs that may arise from time-to-time.
Children's education, start-in-life or marriage provision or even periodical needs for cash
over a stretch of time can be less stressful with the help of these policies.
Alternatively, policy money can be made available at the time of one's retirement from service
and used for any specific purpose, such as, purchase of a house or for other investments. Also,
loans are granted to policyholders for house building or for purchase of flats (subject to certain
conditions).
Any person who has attained majority and is eligible to enter into a valid contract can insure
himself/herself and those in whom he/she has insurable interest.
Policies can also be taken, subject to certain conditions, on the life of one's spouse or children.
While underwriting proposals, certain factors such as the policyholder’s state of health, the
proponent's income and other relevant factors are considered by the Corporation.

Insurance For Women

Prior to nationalisation (1956), many private insurance companies would offer insurance to
female lives with some extra premium or on restrictive conditions. However, after
nationalisation of life insurance, the terms under which life insurance is granted to female lives
have been reviewed from time-to-time.
At present, women who work and earn an income are treated at par with men. In other cases, a
restrictive clause is imposed, only if the age of the female is up to 30 years and if she does not
have an income attracting Income Tax.

Medical And Non-Medical Schemes:

Life insurance is normally offered after a medical examination of the life to be assured.
However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC has
been extending insurance cover without any medical examination, subject to certain
conditions.

With Profit And Without Profit Plans:

An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any,
after periodical valuations are allotted to the policy and are payable along with the contracted
amount.
In 'without' profit plan the contracted amount is paid without any addition. The premium rate
charged for a 'with' profit policy is therefore higher than for a 'without' profit policy.

Keyman Insurance
Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm
against financial losses, which may occur due to the premature demise of the Keyman.

19
OPERATE ALL OVER INDIA

20
 ADMISSION OF AGE

Admission Of Age:
Age is the main basis of calculation of premium under life insurance policies. The following
are accepted as evidence of age:
Certified extract from Municipal or Local Body’s records made at the time of birth. Certificate
of Baptism or Certified Extract Family Bible, if it contains age or date of birth. Certified Extract
from School or College records, if age or date of birth is stated therein. Certified Extract from
Service Register in the case of Govt. employees and employees of Quasi-Govt. Institutions or
Passport issued by the Passport Authorities in India.

Payment Of Premium:
By cash, local cheque (subject to realization of cheque), Demand Draft at Branch Office. The
DD and cheques or Money Order may be sent by post. You can pay your premiums at any of our
Branches as 99% of our Branches are networked. Many Banks do accept standing instructions to
remit the premiums. So by providing a standing instruction to your Bank to debit your account
for the premium amount and send it vide a banker’s cheque to LIC, on the due dates and months
mentioned on your policy bond.
Through Internet : Payment of premiums can be made through Internet through Service
Providers viz.HDFC Bank, ICICI Bank, Times of Money, Bill Junction, UTI Bank, Bank of
Punjab, Citibank, Corporation Bank, Federal Bank and Bill Desk.
Premium payment can also be made through ATMs of Corporation Bank and UTI Bank. Premium
payment can also be made through Electronic Clearing Service (ECS) which has been launched
at Mumbai, Hyderabad, Chennai, Kolkata, New Delhi, Kanpur, Bangalore, Vijayawada, Patna,
Jaipur, Chandigarh, Trivandrum, Ahmadabad, Pune, Goa and Nagpur, Secunderabad &
Visakhapatnam. A policyholder having an account in any Bank which is a Member of the local
Clearing House can opt for ECS debit to pay premiums. The policyholders wishing to use this
system would have to fill up a Mandate Form available at our Branches/DO and get it
certified by the Bank. The certified Mandate Forms are to be submitted to our BO/DO.
Policy can be anywhere in India.
Citibank Kiosks at Industrial Assurance Building, Churchgate, New India Building, Santacruz,
Jeevan Shikha Building, Borivili are dedicated for collection of premiums through cheques.

Days Of Grace:
Policyholder should pay the premiums on due dates. However, a grace period of one month but
not less than 30 days will be allowed for payment of yearly/half- yearly/quarterly premiums and
15 days for monthly premiums.
When the days of grace expire on a Sunday or a public holiday, the premium may be paid on the
following working day to keep the policy in force.
If the premium is not paid before the expiry of the days of grace, the policy lapses.

21
Revival Of Lapsed Policy:
If the policy has lapsed, it can be revived during the life time of the life assured, within a period
of five years from the date of the first unpaid premium but before the date of maturity subject to
certain conditions.
The Corporation offers three convenient schemes of revival viz., Ordinary Revival, Special
Revival and Installment Revival. Policies can also be revived under Loan-cum- Revival and SB-
cum-Revival schemes.
Request for revival may be made to the Branch Office servicing the policy.

Change Of Address And Transfer Of Policy Records:

The policyholder should immediately intimate the change of his/her address to the Branch Office
servicing the policy. The correct address facilitates better service and quicker settlement of
claims. Policy records can also be transferred from one Branch Office to another for servicing, as
requested by the policyholder.

Loss Of Policy Document:

The Policy Document is an evidence of the contract between the Insurer and the Insured. Hence
the policyholder should preserve the Policy Bond till the contracted amount under it is settled.
Loss of the Policy Document should be immediately intimated to the Branch Office where it is
serviced.

Loans:
Loans are granted on policies to the extent of 90% of Surrender Value of the policies which are
in force and 85% of the Surrender Value in case of policies which are paid- up, inclusive of
the cash value of bonus. The rate of interest charged at present is 9%
p.a. payable half-yearly.
Loans are not granted for a period shorter than six months. The Conditions and Privileges printed
on the back of the Policy Bond states whether a particular policy is with or without the loan
facility.

Relief To Policyholders:
The Corporation generally allows concessions on payment of premiums, settlement of claims,
issue of duplicate policies, etc when the policyholder are affected by natural calamities such as
droughts, cyclones, floods, earthquakes, etc.

Nomination:
Nomination is a right conferred on the holder of a Policy of Life Assurance on his own life to
appoint a person/s to receive policy moneys in the event of the policy becoming a claim by the
assured’s death. The Nominee does not get any other benefit except to receive the policy moneys
on the death of the Life Assured. A nomination may be changed or cancelled by the life assured
whenever he likes without the consent of the Nominee.
Ensure nomination exists in the policy for easy settlement of claims.

22
Assignment:
Assignment means transfer of rights, title and interest. When an assignment is executed, all
rights, title and interest in respect of the property assigned are immediately transferred to the
Assignee/s and the Assignee/s become the owner/s of the policy subject to any lawful condition
made in the assignment.
Assignment can be either conditional or absolute. On assignment (other than to LIC),
Nomination automatically stands cancelled. Hence, when such a policy is reassigned, the
policyholder will have to make a fresh nomination to avoid delay in settlement of claim.

Survival Benefit/Maturity Claims:

LIC settles survival benefit/maturity claims on or before the due date.
Policyholder are intimated well in advance by the Branch Office which services the policy
regarding the payment, and the necessary Discharge Voucher is also sent for execution by the
assured. In case the policyholder does not get any intimation from the Branch Office concerned,
he/she should contact them, quoting the Policy Number.
Survival Benefit payment up to Rs.60,000/- are settled without insisting for Policy Bond and
Discharge Voucher.

Death Claims:
If the life assured dies during the term of the policy, death claim arises. The death of the
policyholder should be immediately intimated in writing to the Branch Office where the policy is
serviced along with the following particulars:
The No./s of the policy/ies The
name of the policyholder
Death Certificate issued by concerned Authority The
date of death.

1. The cause of death and

2. Claimant’s relationship with the deceased

• On receipt of the intimation of death, necessary claim forms are sent by the Branch
Office for completion along with instructions regarding the procedure to be followed
by the claimant.
• The claims which have arisen after a period of three years are treated as non-
early claims and settled within 30 days from the date of receipt of all requirements.
• The claims that have arisen within a period of two years from the date of
commencement of the policy, are treated as early claims and investigation is
compulsory in such cases.

23
Initiatives In Policy Servicing Areas:

All 2048 Branches of LIC are fully computerized covering all policy servicing aspects to give
prompt computerized services from new policy introduction, acceptance of renewal premium,
revivals, loans, etc to final claims settlement.
Green Channel facility has been introduced for the speedy completion of proposals.Payment of
premiums can be made through internet through service providers, viz., HDFC Bank, ICICI
Bank, Times of money, Bill Junction, UTI Bank, Bank of Punjab,Citi Bank, Corporation Bank,
Federal Bank and Billdesk.

Grievance Redressal Machinery:

A machinery for redressal of policyholders□ grievances exist in all the offices of the
Corporation. These are headed by designated Officers who are available at their respective
Offices every Monday between 2.30 pm and 4.30 pm. except holidays. Policyholder can
approach these officers to get their grievances redressed.
The Designated Officers at the various offices of the Corporation are : At
Branch Office --- Sr./Branch Manager
At Divisional Office --- Marketing Manager At
Zonal Office --- Regional Manager (Mktg)
At Central Office --- Executive Director (Mktg/IO/CRM)

Citizens’ Charter:

• Citizens' Charter was presented to the Nation in November, 1997. In the Charter the
bench marks were prescribed for 30 servicing areas.

24
 MISSSION & VISION OF LIC

Mission:
"Explore and enhance the quality of life of people through financial security by
providing products and services of aspired attributes with competitive returns, and
by rendering resources for economic development."

Vision:
"A trans-nationally competitive financial conglomerate of significance to societies
and Pride of India."

25
 OBJECTIVE 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 all insurable
persons in the country and providing them adequate financial cover against death at a
reasonable cost.
• Maximize mobilization of people's savings by making insurance-linked savings
adequately attractive.
• Bear in mind, in the investment of funds, the primary obligation to its policyholders,
whose money it holds in trust, without losing sight of the interest of the community as a
whole; the funds to be deployed to the best advantage of the investors as well as the
community as a whole, keeping in view national priorities and obligations of attractive
return.
• Conduct business with utmost economy and with the full realization that the moneys
belong to the policyholders.
• Act as trustees of the insured public in their individual and collective capacities.
• Meet the various life insurance needs of the community that would arise in the changing
social and economic environment.
• Involve all people working in the Corporation to the best of their capability in furthering
the interests of the insured public by providing efficient service with courtesy.
• Promote amongst all agents and employees of the Corporation a sense of participation,
pride and job satisfaction through discharge of their duties with dedication towards
achievement of Corporate Objective.

26
 Shri.P.Chidambaram
Union Finance Minister

“In the year 1956, 245 Indian and foreign companies were nationalized and today, the three
letters ‘LIC’, stands as a synonym for insurance, for services, for excellence in strengthening the
economic fibre of this country. I dare to say that no other three letters taken together are more
recognised to the length and breadth of India than LIC.”

“The performance figures of LIC give an indication why LIC is dear to us, why LIC is a Jewel in
our crown and why we will continue to nurture LIC and grow it into a great organization
rendering service to the people of India.”

“LIC’s footprints are now to be found in many other countries in the world. Wherever Indians go
- and they go everywhere now, wherever Indians are welcome - and they are welcome in every
part of the world, wherever Indians settle down – they have found many new homes, wherever
Indians excel – and they excel in every walk of life, they want LIC – they want LIC to protect
them, to look after their savings, and provide for protection as well
as their retirement.”

P. Chidambaram
Union Finance Minister
Excerpts from speeches at the inaugural function of LIC’s Golden Jubilee Celebrations.
Lucknow, September 1, 2005.

27
Dr.Manmohan Singh
Prime Minister of India

28
 AWARDS OF LIC

Reader Digest Trusted Brand Insurance

CNBC Awaaz Consumer awards 2010
category 2010

OUTLOOK MONEY NDTV PROFIT AWARD

World Brand Congress Award
2009 in " BEST LIFE INSURER CATEGORY "

Golden Peacock Innovative Product / Service ASIA PACIFIC HRM Congress, 2009 Award
Award - 2009 for INNOVATIVE HR PRACTICES

29
 NDTV Profit Business Leadership Award
Loyalty Award - 2009
2008

INDY's Silver Award for Best Corporate NASCOM IT USER Award 2008
Film

Business Superbrand India 2009 ASIA BRAND CONGRESS BRAND

LEADERSHIP AWARD, 2008

30
Meaning of saving scheme:
saving schemes are a kind of mutual funds like diversified equity funds with Tax benefits. It is
just like other tax saving instruments like National Savings Certificate and Public Provident
Fund. Main advantage with ELSS is lock-in period is only 3 years while for NSC it is 6 years
and for PPF it is 15 years. At the same time risk factor is high in ELSS.

As per Income Tax act 80c investment up to Rs 1,00,000 are eligible for deduction from the
gross total income hence reducing the total taxable income. For example if your total annual
income is Rs 3,00,000 and you invest Rs 1,00,000 in ELSS then your taxable income will
become Rs 2,00,000.
Previously there was an upper limit for investing in tax saving instruments like ELSS of
5,00,000. Only individuals with less than 5,00,000 annual income are allowed to invest in tax
saving instruments. But last year financial budget removed this restriction and now any
individual can invest in ELSS irrespective of their income level.

Advantages of ELSS over NSC and PPF

1. Main advantage of ELSS is its short lock-in period. Maturity period of NSC is 6 years and
PPF is 15 years.
2. Since it is an equity linked scheme earning potential is very high.
3. Investor can opt for dividend option and get some gains during the lock-in period
4. Investor can opt for Systematic Investment Plan
5. Some ELSS schemes also offer personal accident death cover insurance
6. Provides 30 to 40% returns compared to 8% in NSC and PPF

Disadvantages of ELSS

1. Risk factor is high compared to NSC and PPF

2. Premature withdrawal is not allowed but it is allowed in other instruments in some
specific conditions.

31
Diversified Equity Schemes and ELSS
Both Equity linked saving scheme and diversified equity scheme operates in same way. Both are
high return and high risk schemes. But there is a 3 year lock in period of ELSS and it provides
tax benefits too.

Systematic Investment Plan

Best way to invest in ELSS is through Systematic Investment Plan(SIP). With SIP you can invest
a small amount every month for a specific time period. With SIP investor can take advantage of
fluctuations in the stock market. So investor will get more units when the market is down and get
less units when the market is up. For eg if you are investing Rs 1000 every month and you will
get 100 units for when Net Asset Value (NAV) is 10 and will get 50 units when NAV is 20. So
investing a fixed sum regularly helps to cover the market fluctuations by rupee costs averaging.
Also most of the Asset Management Companies (AMC) charges less entry load for SIP
compared to normal purchase.

32
 PRODUCT OFFERED TO CUSTOMR BY LIC

Children's Policy

• Komal Jeevan - Plan No. 159

• Children Deferred - Plan no.41
• Jeevan Kishore - Plan no.102
• Jeevan Chhaya - Plan no.103
• Marriage Endowment/Educational Annuity - Plan No. 90
• Jeevan Anurag - Plan no.168

Endowment Policy

• Endowment with Profits - Plan no.14 Limited Payment

• Endowment with Profits – Plan no.48
• Jeevan Mitra – Plan no.88
• New JanaRaksha Policy – Plan no. 91
• Jeevan Anand Plan no. 149
• Jeevan Mitra Triple Cover – Plan no.113

Group Insurance Policy

• Janashree Bima Yojana

• Group Insurance Scheme in lieu of EDLI
• Group (Trem) Insurance Scheme
• Group Saving Linked Insurace Scheme
• Group Superannuation Scheme
• Group Mortgage Redemption Assurance Scheme

Joint Life Policy

• Jeevan Saathi - Plan no.89

33
Money Back Policy

• Money Back with Profit - Plan no.75

• New Money Back – Plan no.93
• Jeevan Surabhi 15 yrs – plan no.106
• Jeevan Surabhi 20 yrs – plan no.107
• Jeevan Surabhi 25 yrs – plan no.108
• Jeevan Bharati Plan no.160
• Jeevan Samriddhi Plan No 154, 155, 156, 157
• Bima Bachat – Plan no.175

Pension Plans or Annuities

• New Jeevan Dhara - Plan no.148

• New Jeevan Suraksha Plan no. 147
• Jeevan Akshay IInd Plan no. 163
• Jeevan Nidhi Plan no.169
• Jeevan Akshat V Plan no.183

Special Plans

• Term Assurance - Plan no.43

• Mortgage Redemption - Plan no.52
• Jeevan Aadhar - Plan no.114
• Market Plus - Plan No 181
• Jeevan Vishwas Plan No. 136
• Jeevan Saral Plan No. 165 Jeevan
Pramukh Plan No. 167
• Bima Nivesh 2005 Plan No 171
• Money Plus-Plan No 180

Term Policy

• Convertible Term Assurance - Plan no.58

• New Bima Kiran
• Trem Assurance
• Anmol Jeevan I Plan No.-164
• Amulya Jeevan-Plan No-177

34
 JEEVAN AKSHAY PLAN
Introduction:
It is an Immediate Annuity plan, which can be purchased by paying a lump sum amount. The
plan provides for annuity payments of a stated amount throughout the life time of the annuitant.
Various options are available for the type and mode of payment of annuities.

Type of Annuity:

• Annuity payable for life at a uniform rate.

• Annuity payable for 5, 10, 15 or 20 years certain and thereafter as long as the
annuitant is alive.
• Annuity for life with return of purchase price on death of the annuitant.
• Annuity payable for life increasing at a simple rate of 3% p.a.
• Annuity for life with a provision of 50% of the annuity payable to spouse during
his/her lifetime on death of the annuitant.
• Annuity for life with a provision of 100% of the annuity payable to spouse during
his/her lifetime on death of the annuitant.

Mode:

• Annuity may be paid either at monthly, quarterly, half yearly or yearly intervals. You
may opt any mode of payment of Annuity.

Salient features:

• Premium is to be paid in a lump sum.

• Minimum purchase price : Rs.50,000/= or such amount which may secure a
minimum annuity as under:

Mode Minimum Annuity

Monthly Rs. 500 per month
Quarterly Rs. 1000 per quarter
Half-yearly Rs. 2000 per half year
Yearly Rs. 3000 per year

• No medical examination is required under the plan.

• No maximum limits for purchase price, annuity etc.
• Minimum age at entry 40 years last birthday and Maximum age at entry 79 years last
birthday.
• Age proof necessary.

35
 Annuity Rate:
Amount of annuity payable at yearly intervals which can be purchased for Rs. 1 lakh under
different options is as under:

Age last birthday Yearly annuity amount under option

(i) ( ii ) (15 years certain) ( iii ) ( iv ) ( v ) ( vi )
40 7510 7440 6930 5610 7310 7120
45 7770 7660 6960 5890 7500 7240
50 8140 7950 7000 6280 7760 7420
55 8650 8330 7050 6810 8130 7670
60 9350 8790 7110 7530 8640 8030
65 10410 9330 7180 8590 9400 8570
70 12080 9830 7260 10220 10560 9370
75 14510 10220 7360 12590 12240 10590
Incentives for high purchase price:
If your purchase price is Rs. 1.50 lakh or more, you will receive higher amount of annuity due
to available incentives.

Cooling-off period
If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy
to us within 15 days from the date of receipt of the Policy Bond. On receipt of the policy we
shall cancel the same and the amount of premium deposited by you shall be refunded to you
after deducting the charges for stamp duty.

Section 41 of Insurance Act 1938 :

• No person shall allow or offer to allow, either directly or indirectly, as an inducement to

any person to take out or renew or continue an insurance in respect of any kind of risk
relating to lives or property in India, any rebate of the whole or part of the commission
payable or any rebate of the premium shown on the policy, nor shall any person taking
out or renewing or continuing a policy accept any rebate, except such rebate as may be
allowed in accordance with the published prospectuses or tables of the insurer:
provided that acceptance by an
insurance agent of commission in connection with a policy of life insurance taken out by
himself on his own life shall not be deemed to be acceptance of a rebate of premium
within the meaning of this sub-section if at the time of such acceptance the insurance
agent satisfies the prescribed conditions establishing that he is a bona fide insurance
agent employed by the insurer.

Any person making default in complying with the provisions of this section shall be
punishable with fine which may extend to five hundred rupees.

36
 BENEFITS OF PLAN

The amount of annuity is assured throughout life of the annuitant.

What happens if the annuitant dies? If the annuitant dies :

1. Under option (i) annuity ceases.

2. Under option (ii)
3. On death during the guaranteed period - annuity is paid to the nominee till the end of
the guaranteed period after which the same ceases.
4. On death after the guaranteed period - annuity ceases.
5. Under option (iii) annuity ceases and the purchase price is paid to the nominee.
6. Under option (iv) annuity ceases.
7. Under option (v) annuity ceases and 50% of the annuity is payable to the surviving
named spouse during his/her life time. If the spouse predeceases the annuitant, the
annuity ceases.
8. Under option (vi) annuity ceases and full annuity is payable to the surviving named
spouse during his/her life time. If the spouse predeceases the annuitant, the annuity
ceases.

When first instalment of annuity payable: First instalment of annuity is payable after
one month, three months, six months or one year from the date of purchase of annuity
depending on the mode chosen is monthly, quarterly, half yearly or yearly respectively.

37
 JEEVAN SARAL POLICY

Product Summary:
This is an Endowment Assurance plan where the proposer has simply to choose the amount and
mode of premium payment. The plan provides financial protection against death throughout the
term of the plan. The death benefit is directly related to the premiums paid. The Maturity Sum
Assured depends on the age at entry of the life to be assured and is payable on survival to the
end of the policy term. It also offers the flexibility of term and a lot of liquidity.

Premiums:
Premiums are payable yearly, half-yearly, quarterly, or monthly through salary deductions as
opted by you throughout the term of the policy or till earlier death.

Loyalty Additions:
This is a with-profits plan and participates in the profits of the Corporation’s life insurance
business. It gets a share of the profits in the form of loyalty additions which are terminal
bonuses payable along with death benefit or maturity benefit. Loyalty Additions may be
payable from the 10th year onwards depending upon the experience of the Corporation

Death Benefit:
250 times the monthly premium together with loyalty additions, if any, and return of
premiums excluding first year premiums and extra/rider premium, if any, is payable in lump
sum on death of the life assured during the term of the policy.

Maturity Benefit:
The Maturity Sum Assured plus Loyalty additions, if any, is payable in a lump sum.

Supplementary/Extra Benefits:
These are the optional benefits that can be added to your basic plan for extra protection/option.
An additional premium is required to be paid for these benefits.

Surrender Value:
Buying a life insurance contract is a long-term commitment. However, surrender values are
available on earlier termination of the contract. The surrender value will be the greater of the
guaranteed surrender value and special surrender. The plan also allows for partial surrenders.

38
Guaranteed Surrender Value:
The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed
Surrender value will be equal to 30% of the total amount of premiums paid excluding the
premiums for the first year and all the extra premiums and premiums for accident benefit / term
rider.

Special Surrender Value:

80% of Maturity Sum Assured if 3 or more years’ but less than 4 years’ premiums have been paid;
90% of the Maturity Sum Assured, if 4 or more years’ but less than 5 years’ premiums have been
paid and 100% of the Maturity Sum Assured, if 5 or more years’ premiums have been paid. The
Maturity Sum Assured for this para will be the Maturity Sum Assured corresponding to the term
for which premiums have been paid under the policy.

Statutory warning:
“Some benefits are guaranteed and some benefits are variable with returns based on
the future performance of your life insurance company. If your policy offers guaranteed
returns then these will be clearly marked “guaranteed” in the illustration table on this
page. If your policy offers variable returns then the illustrations on this page will show
two different rates of assumed investment returns. These assumed rates of return are
not guaranteed and they are not upper or lower limits of what you might get back as
the value of your policy is dependant on a number of factors including future
investment performance.”

Age at entry: 35 years

Policy term: 25 years
Mode of premium payment: Yearly
Amount of annual premium: Rs.4704/-

39
 Amount payable at the end of year on death during the year
Total (Rs.)
End Of
Premium
Policy
paid till end Variable Total
Year
of year Guaranteed
Scenario 1 Scenario 2 Scenario 1 Scenario 2

1 4704 100000 0 0 100000 100000

2 9408 104800 0 0 104800 104800
3 14112 109600 0 0 109600 109600
4 18816 114400 0 0 114400 114400
5 23520 119200 0 0 119200 119200
6 28224 124000 0 0 124000 124000
7 32928 128800 0 0 128800 128800
8 37632 133600 0 0 133600 133600
9 42336 138400 0 0 138400 138400
10 47040 143200 7000 18000 150200 161200
15 70560 167200 13000 41000 180200 208200
20 94080 191200 30000 100000 221200 291200

25 117600 215200 65000 211000 280200 426200

40
 Amount payable on surrender or maturity at the end
Total of year
End Of Premium paid
Variable Total
Policy Year till end of
year Guaranteed Scenario Scenario
Scenario 1 Scenario 2
1 2
1 4704 0 0 0 0 0
2 9408 0 0 0 0 0
3 14112 8099 0 0 8099 8099
4 18816 12942 0 0 12942 12942
5 23520 18660 0 0 18660 18660
6 28224 23180 0 0 23180 23180
7 32928 27856 0 0 27856 27856
8 37632 32744 0 0 32744 32744
9 42336 37892 0 0 37892 37892
10 47040 43360 7000 18000 50360 61360
15 70560 75200 13000 41000 88200 116200
20 94080 106124 30000 100000 136124 206124
25 117600 135296 65000 211000 200296 346296

i) This illustration is applicable to a non-smoker male/female standard (from medical, life

style and occupation point of view)
life.

ii) The non-guaranteed benefits (1) and (2) in above illustration are calculated so that
they are consistent with the Projected Investment Rate of Return assumption of 6% p.a.
(Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparing this
benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI
will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as
the case may be. The Projected Investment Rate of Return is not guaranteed.

iii) The main objective of the illustration is that the client is able to appreciate the
features of the product and the flow of benefits in different circumstances with some
level of
quantification.

iv) Loyalty additions will depend on future profits and as such is not guaranteed.

v) The Maturity Benefit is the amount shown at the end of the policy term.
41
 SMALL SAVING

There are different kinds of Small Savings Schemes suitable for various segments of the
population.

The Government of India have reduced the rate of interest for many of the Small Savings
Scrips w.e.f. 01.03.2003 as follows:

Sl. Scheme Rate of Interest Rate of Interest Rate of Interest

No. w.e.f. 01.01.2001 w.e.f. 01.03.2002 w.e.f. 01.03.2003
1. POMIS 9.50 % 9.00 % 8.00 %
2. 1 YEAR 7.50 % 7.25 % 6.25 %
TD
2 YEAR 8.00 % 7.50 % 6.50 %
TD
3 YEAR 9.00 % 8.25 % 7.25 %
TD
5 YEAR 9.00 % 8.50 % 7.50 %
TD
3. PORD Rs. 10 becomes Rs. 10 becomes Rs. 10 becomes
Rs. 758.53 after 5 years Rs. 748.49 after 5 years Rs. 728.90 after 5 years
4. NSC- VIII 9.50 % 9.00 % 8.16 %
5. PPF 9.50 % 9.00 % 8.00 %
6. KVP Doubles in Doubles in Doubles in
seven years and three seven years and eight Eight years and seven
months months months
7. POSA 4.50 % 3.50 % 3.50 %
8. SCSS 9.00%
* - NSS -92 Scheme was withdrawn by the G.O.I. w.e.f 01.11.2002

The SCSS introduced w.e.f. 1-7-2004

42
 PAY ROLL SAVING SCHEME:

Under this scheme, any monthly salaried person can voluntarily authorise his appointing
authority or employer to deduct monthly contributions from his salary and to remit into anyone
of the savings schemes like Post Office Recurring Deposit, Post Office Time Deposit, National
Savings Certificate (VIII issue) and Public Provident Fund Scheme. The group leader appointed
in each organization for collection purpose is paid 2% commission for his service who
implements the scheme in the respective concern.

Geographical Data of LIC

Details of Waste Lands in India as per (NRSA) Estimates

Details Area in m.ha.
Culturabel Wastelands
Saline 3.9
Gullied and Ravinous 4.32
Waterlogged 0.89
Undulating uplands with or without Scrub 10.79
Jhum Cultivation and Forest Blanks 2.4
Sandy Areas 10.53
Total 32.83
Unculturable Wastelands
Barren Hills and Rock out-Crops 2.75
Snow Bound Area 17.7
Total 20.45
Grand Total 53.28

43
 State-wise Length of Coastline and Population in India
(1991)
Length of Area
Population 1991
States/UTs Coastline ( ' 000 Sq.
(Lakh)
(Km.) Km.)
Gujarat 1600 196.00 41.20
Maharashtra 840 307.70 78.70
Goa 300 3.70 1.20
Karnataka 400 191.80 44.80
West Bengal 950 88.70 68.00
Tamil Nadu 720 130.10 55.60
Orissa 560 155.70 31.50
Kerala 1014 39.00 29.00
Andhra Pradesh 960 275.00 66.30
Andaman & Nicobar Islands - 8.50 0.30
Lakshadweep - 0.03 0.05

Dam Commenced through Decades in India

Decades/Periods No. Built
Before 1900 42
1901-1950 251
1951-1960 234
1961-1970 461
1971-1980 1190
1981-1990 1066
1991-1996 116
1996-2000 695

44
BANKS AND FINANCIAL INSTITUTIONS

Financial Institution-wise Disbursement in

India (2000-2001 to 2002-2003)

(Rs. in Crore)

Institution 2000-01 2001-02 2002-03

IDBI 1743.6 1151 3924.2

IFCI 2152.7 1096.9 1796.5

ICICI 31664.5 25831 -

IIBI 1709.8 1070 1091.9

IDFC 766.5 1506.1 949.3

SIDBI 6441.4 5919.3 6789.4

Exim Bank 2070.5 3869.2 6047.8

NABARD 1412 1897 2216.4

45
Statewise Priority Sector Lending of Public
Sector Banks in India
(1997 to 1999)
(Rs. in Crore)
March 1997 1998 1999
States/UTs
Andhra Pradesh 7205.62 8727.80 9202.44
Arunachal Pradesh 20.27 23.79 29.93
Assam 1018.89 963.16 1083.80
Bihar 2993.98 3107.43 3604.20
Goa 269.47 339.87 421.09
Gujarat 4675.29 5542.48 6228.66
Haryana 2487.61 2893.73 3506.50
Himachal Pradesh 487.06 558.05 640.79
Jammu & Kashmir 247.54 302.80 342.98
Karnataka 5971.12 7017.59 8601.58
Kerala 3395.40 3499.60 3918.86
Madhya Pradesh 4205.57 4909.41 5638.55
Maharashtra 10453.26 12697.68 15457.85
Manipur 96.31 102.86 111.10
Meghalaya 49.26 62.05 67.02
Mizoram 19.18 22.72 27.35
Nagaland 66.46 58.92 65.90
Delhi 3743.13 4639.57 5902.95
Orissa 1901.25 2089.20 2105.74
Punjab 4695.32 5502.57 6583.48
Rajasthan 2808.41 3614.73 4197.77
Sikkim 17.63 24.67 27.82
Tamil Nadu 9049.19 9736.06 10467.29
Tripura 122.53 132.43 138.73
Uttar Pradesh 7435.39 8360.68 9298.93
West Bengal 4639.25 5155.67 5680.61
Andaman & Nicobar Islands 15.97 16.90 24.89
Chandigarh 509.34 509.27 576.50
Dadra & Nagar Haveli 6.36 11.99 17.04
Daman & Diu 6.59 7.50 8.40
Lakshadweep 1.76 2.16 2.27
Pondicherry 104.73 104.33 113.10

46
State-wise Net Small Savings Collections in India
(1998-99 to 2001-02)
(Rs. in Crore)
Net Amount (including P.P.F.)
Collected through Post Offices
States/UTs
1998- 1999- 2000- 2001-
99 2000 01 02
Andhra Pradesh 1121.10 1566.33 1809.68 1752.95
Assam 95.29 464.63 513.74 471.08
Arunachal Pradesh 14.39 10.29 15.32 11.71
Bihar 1676.50 1970.52 2210.29 1438.79
Bihar-Jharkhand - - 0.00 881.79
Gujarat 2661.90 3276.96 4281.25 3759.71
Goa 74.42 80.94 102.47 110.20
Haryana 907.32 970.23 978.18 1129.83
Himachal Pradesh 60.69 (-)507.27 235.79 304.12
Jammu & Kashmir 231.36 254.98 300.34 273.00
Karnataka 1162.16 1336.94 1570.96 1366.66
Kerala 555.54 689.62 491.71 495.46
Madhya Pradesh 1021.85 1215.50 993.28 1184.73
M.P. Chattisgarh - - 363.68 326.39
Maharashtra 2977.83 3171.76 4100.36 3406.98
Manipur 16.57 21.39 25.47 13.48
Meghalya 21.12 19.72 33.07 24.17
Mizoram 7.90 8.51 15.48 9.75
Nagaland 7.80 6.14 8.66 13.26
Orissa 435.06 521.18 545.18 569.98
Punjab 1642.08 1920.04 2181.06 1832.03
Rajasthan 1594.02 2203.26 2609.22 2973.24
Sikkim 9.41 12.05 12.70 9.41
Tamil Nadu 874.19 1304.50 1600.22 1520.98
Tripura 71.71 104.70 138.27 126.06
Uttar Pradesh 3717.51 4334.12 4042.99 3979.95
Uttaranchal - - 462.60 484.07
West Bengal 4424.08 5249.12 6181.67 6488.02
Andaman & Nicobar
4.82 1.73 (-)4.37 1.11
Islands
Chandigarh 31.01 17.14 3.40 51.85
Daman & Diu 5.39 5.73 4.27 2.47
Delhi 1326.29 1087.93 1672.06 1571.74
Lakshadweep 0.05 0.20 0.11 0.05
Army Post Office 13.48 23.36 18.39 28.79
Pondicherry 8.26 20.90 61.47 80.88
India 26771.10 31363.15 37578.97 36694.69

47
 RESEARCH METHODOLOGY
TOPIC:- ANALYTICAL STUDY OF SAVING

SCHEME DURATION:- 45 Days

➢ Research methodology systematically solves the research problems. It has many

dimensions & research methods constitute a part of the research methodology.

➢ Thus when we talk about research methodology , we do not only talk of the research
methods but also consider the logic behind the methods. We use being evaluated either by
researcher himself or by others.

➢ To effectively carry out in research , I would use the following research process, which
consists of series of actions or steps.

1. Formulating the research problems.

2. Research design & sample design
3. Analysis of data gathered.
4. Graphics & interpret.

1. FORMULATING THE RESEARCH PROBLEM

This is the first step under which the problem is stated in general way & then ambiguities that is
understanding & rephrasing the problems thoroughly & rephrasing the same into a meaningful
terms from an analysis point of view.

2. REPARING THE RESEARCH DESIGN

The function of research design is to provide for the collection of relevant evidences with
minimal expenditures of efforts, time & money.

RESEARCH DESIGN
➢ Types of research
➢ Sample of design

Types of Research

➢ The type of research under present is an Analytical Research. In analytical research we

use facts or information already available, & analyze these to make a critical evaluation
of the material . Hence the same would be done .
➢ In this project , I had collected facts , data & information .

48
 Sample Design
A sample design is a definite plan determined before any data is actually collected for
obtaining a sample. Researcher must select a sample design, which should be reliable &
appropriate for this report.

3. OBSERVATIONAL DESIGN (COLL4ECTION OF DATA)

Observational design relates to the condition under which the observations are to be made
observational design in respect to research . There are several ways of collecting the appropriate
data , which differ considerably in context of money , time , cost & other resources at the
disposal of the researcher.

Data can be obtained from two important resources :

➢ Primary Data
➢ Secondary Data

Primary Data

Primary data are the data that are collected afresh & for the first time. Thus happens to be in
character. Primary data are collected by the following ways:

➢ Observations
➢ Interview
➢ Schedule
➢ Questionnaire

Secondary Data

Secondary data are the data that are collected & are already collected & are only
analyzed by different sources. These are as follows:

➢ Corporate magazine
➢ Manuals of various companies
➢ Books, journals & newspaper
➢ Employment exchange

I collected the secondary data from internet, mainly from annual reports of AXIS BANK &
Books of different authors of repute.

49
 DATA ANALYSIS & INTERPRETATION

➢ DATA GIVES PREFERENCE OF RESPONDENTS OF INSURANCE COMPANIES

NO.OF
COMPANY’S NAME SHARE (%)
RESPONDENT

L.I.C. 78 78
RELIANCE LIFE
3 3
INSURANCE
ICICI PRUDENTIAL 10 10

SBI LIFE 7 7

HDFC 2 2
TOTAL 100 100

2
7
10
3 LIC REL ICICI SBI HDFC

78

INTERPRETATION

78% of the people contacted prefer LIC policy to any other and therefore it is ranked no.1 by
that percent of respondents.

DATA GIVES BENEFITS OF INSURANCE PERCEIVED BY RESPONDENTS

50
 NO.OF
BENEFITS SHARE (%)
RESPONDENTS

Cover Future Uncertainty 55 55

Tax Deductions 20 20

Future Investment 25 25

TOTAL 100 100

Cover Future
25%
Uncertainty
Tax Deductions
55%
20%
Future Investment

INTERPRETATION
55% of the respondents believe that covering future uncertainty is the biggest benefit of an
insurance policy.
Whereas, 20% and 25% of them believe that the other benefits are Tax deduction and future
investments respectively.

51
DATA PROVIDES FEATURES OF INSURANCE POLICY THAT ATTRACTED
RESPONDENTS

FEATURE NO.OF SHARE (%)

RESPONDENTS
Money Back Guarantee 15 15
Larger Risk Coverance 37 37
Easy Access to Agents 7 7
Low Premium 30 30
Company's Reputation 11 11
TOTAL 100 100

FEATURES OF INSURANCE POLICY

MONEY BACK GUAARENTEE

LARGER RISK COVERANCE

11%15%

EASY ACCESS TO AGENTS

30% 37%

7% LOW PREMIUM

REPUTATION OF COMPANY

INTERPRETATION

Majority of the respondent (37%) found Larger risk coverance as the most attracted feature
of the all.

52
 DATA PROVIDES NUMBER OF INSURANCE POLICY TYPE RESPONDENTS

POLICY TYPE NO. OF SHARE (%)

RESPONDENTS

LIFE POLICY 75 75

NON LIFE POLICY 25 25

BOTH 45 45

NATURE OF POLICY

45
LIFE POLICY

75 NON LIFE POLICY

25 BOTH

INTERPRETATION

75% of the respondents have Life Insurance Policy while 45% have both. (The % is
calculated out of 280 positive response)

53
 DATA GIVES PEOPLE PERCEPTION ABOUT INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

A saving tool 81 81%

A tax saving device 74 74%

A tool to protect your family 100 100%

0
0 0

81
100

SAVING TOOL
74
TAX SAVING TOOL

FAMILY PROTECTIO N

INTERPRETATION
81% of the respondents have perception of Insurance being a saving tool.
And 74% of the respondents have perception of Insurance being a tax saving device. But
100% of the respondents are with the view that Insurance is a tool to protect your family.

54
DATA SHOWS PEOPLES HAVING INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Yes 70 70%

No 30 30%

Total 100 100%

30%

70%

Yes
No

INTERPRETATION

Of the sample size of 400 surveyed respondents 70% of the respondents are having
Insurance policy.
30% of the respondents are either not having any Insurance policy at present or their policy is
already matured.
And at present 100% of the respondents are with the view that Insurance is a tool to protect
your family.

55
 DATA SHOWS BUYING PROCESS OF THE PEOPLE

BUYING PROCESS NO. OF SHARE (%)

RESPONDENTS

Customer approached 45 45%

Insurance company/Agent

Company/agent approached 55 555

customer

Total 100 100%

INTERPRETATION
44.5% of the respondents approached the Insurance Company / Agent.

56%
44%

Customer approached Insurance company/Agent

Company/agent approached customer

Whereas, 55.5% of the respondents were approached by the Company /Agent.

56
 ➢ DATA SHOWS REASONS BEHIND FOR INSURANCE

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Tax saving 80 80%

Saving / Investment 80 80.%

Family protection 100 100%

80

100

80

INTERPRETATION

80.71% of the Respondents opted for Insurance for tax saving benefits.
80.71% of the Respondents opted for saving / Investments.
But all of them, i.e. 100% of the respondents have opted for insurance for their family
protection.

57
DATA SHOWS SATISFACTION OF RESPONDENTS WITH RESPECT TO POLICY

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Satisfied 60 60%

Not satisfied 40 40%

Not Responded 0 0.0%

Total 100 100%

0%
40%

60%

Satisfied Not satisfied Not Responded

INTERPRETATION

60% of the respondents are more or less satisfied with their existing policy. 40%
of the respondents are not satisfied with their existing policy.
In this case all of those who have taken a policy have responded.

58
DATA SHOWS SATISFACTION OF +RESPONDENTS WITH RESPECT TO SERVICE
AGENT

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Satisfied 45 45%

Not satisfied 55 55%

Not Responded 0 0.0%

Total 100 100%

45.00%
55.00%

Satisfied Not satisfied

INTERPRETATION

• 45% of the respondents are satisfied with their existing service agent.

• 55% of the respondents are not satisfied with their existing insurance agent.

• All of those who have taken a policy have responded.

59
 DATA SHOWS NUMBER OF RESPONDENTS PAYING TAX

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Paying tax 100 100%

Not paying tax - 0%

Total 100 100%

0%

100%

Paying tax Not paying tax

INTERPRETATION

• Of the sample size of 400 respondents, all the respondents are paying tax.

60
 DATA SHOWS RESPONDENT’S INVESTMENTS FOR TAX SAVING

INVESTMENTS NO. OF SHARE (%)

RESPONDENTS
LIC 51 51%
NSC 33 33%
Bonds 32 32%
PPF 25 25%
PF 21 21%
EPF 11 11%

11
51
21

25

33
32

LIC NSC BOND PPF PF EPF

INTERPRETATION

• 51% of the respondents save their tax by investing in LIC, which is the highest

among all Investment. This shows that most people for getting taxes benefits invest in LIC.

• 33.25% of the respondents do their tax saving by investing in NSC.

• 32.25% of the respondents to their tax saving by investing in bonds.

61
 DATA SHOWS RESPONDENTS PERCEPTION ABOUT BEST FORM OF
INVESTMENT FOR SECURING THEIR FUTURE

NO. OF SHARE (%)

RESPONDENTS
Fixed Assets 75 75%

Bank deposits 11 11%

Jewellery 25 25%
Securities i.e. bonds, MFs 40. 40%
Shares 10 10%
Insurance 70 70%

Fixed Assets Bank deposits Cash & Jewellery

Securities i.e. bonds, MFs Shares
75
70
Insurance

10 11
4025

INTERPRETATION

• 75.25% of the respondents as with the view that Fixed Assets is the best form of investment

for securing their future.

• 70.5% of the respondents are with the perception that Insurance is the best form of
investment for securing their future, which is one of the highest and this shows that
insurance is an important key for securing your future.

62
DATA SHOWS WHAT PEOPLE INTENT TO GAIN FROM THEIR INVESTMENT

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Saving & Returns 100 100%

Security 90 90%
Tax benefits 71. 71.%

71 100

90

Saving & Returns Security Tax benefits

INTERPRETATION

• 100% of the respondents intent to gain saving and returns from their investment.

• 90% of the respondent’s intent to gain security from their investments.

• Whereas, 71.75% of the respondent’s intent to gain tax benefits from their investments.

63
DATA GIVES PEOPLE’S PERCEPTION ON APPROPRIATE AGE FOR BUYING
INSURANCE

RESPONSE NO. OF RESPONDENTS SHARE (%)

After 25 years 29 29%
After 35 years 10 10%
After 45 years 0 0%
Anytime 60 60%

29%

60.61%

1 0.10%
0%

After 25 years After 35 years After 45 years Anytime

INTERPRETATION
• 29% of the respondents are with the view that insurance should be bought after the age of

25 years.

• 10.5% of the respondents are with the view that insurance should be buyed after the age

of 35 years.

• Whereas, 60.5% of the respondents are with the view that buying of insurance do not have

any thing to do with age i.e. there is no age limitations. It can be

purchased any time according to the need.

64
 DATA SHOWS PEOPLE OPINION ABOUT INDIAN INSURANCE COMPANIES

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Rigid plans 67 67%
Non user friendly 29 29%
Unsatisfactory services 26 26%
Non Aggressive 35 35%
Satisfactory 24 24%
Good 10 10%
Very good 0 0%

0
10
24
67

33

26 29

Inflexible plans Non user friendly

Unsatisfactory services Satisfactory Non Aggressive Good
Very good

INTERPRETATION

• 67% of the respondents have the opinion that Indian Insurance Companies have
Rigid plans.
• 29.5% feel that Indian Insurance companies are Non-user friendly.
• 26.5% feel that services of Indian Insurance companies are Unsatisfactory.
• 35.75% of the respondents are with the view that Indian Insurance companies are
Non-aggressive.
• 24% of the respondents feel that products and services of Indian Insurance
companies is Satisfactory.
• Whereas only 10.25% feel that it is Good enough.
• And according to the data, no single person has felt that it is very good.

65
 DATA SHOWS WHAT PEOPLE WOULD LOOK FOR IN AN INSURANCE COMPANY

RESPONSE NO. OF SHARE (%)

RESPONDENTS
A trusted name 82 82%
Friendly service & 71 71%
responsiveness
Good plans 81 81%
Accessibility 49 49%

49
82

81

71

A trusted name
Friendly service & responsiveness Good plans
Accessibility

INTERPRETATION

• 82% customers look for a Trusted name in a company for insurance.

• 81.5% customers look for a good plan in a company for insurance.

• Friendly service & responsiveness and Accessibility are also important factors looked by

customers in a company.

66
 DATA SHOWS PEOPLE PLANNING FOR NEW INVESTMENTS

RESPONSE NO. OF SHARE (%)

RESPONDENTS

Planning 87 87%

Not planning 13 13%

Total 100 100%

13.0%

87.0%

Planning Not planning

INTERPRETATION

• Only 12.5% of the customers contacted are not planning for new investments presently.

• Whereas, 87.5% of the customers are still planning for new investments this can be a great

potential for Reliance Life Insurance to take them on their favor.

67
 DATA SHOWS PEOPLE INTERESTED IN GOING FOR INSURANCE IF A
SERVICE PROVIDER AWAY FROM THE CITY OFFERS BETTER SERVICE &
PRODUCTS

RESPONSE NO. OF SHARE (%)

RESPONDENTS
Yes 43 43%
No 44 44%
Uncertain 13 13%
Total 100 100%

13%
43%

44%

Yes No Uncertain

INTERPRETATION

The interested customers i.e. 43% are ready to go for insurance even away from a city if services
and products are worthwhile, which again is a good prospect (potential) for Life Insurance
Corporation of India to take them on their favor.

68
 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, Peacetime
Contingency Operations and conduct training as usual, while briefing that the LIC
block has been checked, will lead us to a possibly fatal false sense of security.
Instinctive behavior and ingrained training must be adjusted to fit new
circumstances. STXs must be developed locally or borrowed from units who have
already been through the training.
The probability of becoming involved in a LIC operation is high. The potential to
attract international attention, even with limited forces, is also great. Units have
demonstrated that with a balanced training focus and proper preparation, many
pitfalls outlined above can be avoided.
LIC is not conventional warfare. This is critical for the counterinsurgent to
understand. The insurgent’s violent and coercive strategy is applied so as to
achieve political, civil, military and psychological results. Hence, the
counterinsurgent must counter all of these strategic elements individually. In
addition, the target of the insurgent’s violence and coercion is the population. This is because the
population is the centre of gravity in LIC. Therefore the counterinsurgent must also focus on the
population to be successful. In terms of military principles in counterinsurgency, doctrinal
precision, professionalism, independence, initiative, force precision, restraint, combined arms,
precision engagement, joint force, effective population based intelligence, integrated
communications, a civil affairs approach and high levels of training are critical.
So we can say that so many merit’s and Demerit’s in life insurance Corporation of India.

69
 SWOT ANALYSIS
1 STRENGTHS

1) Strong brand name

2) Large customer base

3) Enhanced quality and long term service commitments

4) Product preference by customers

2 WEAKNESSES

1) New products did not embark predicted sales.

2) New / change look is not undertaken in new products.

3 OPPORTUNITIES

1) Competition is paving way for developing fuel efficient product like

splendor.

2) Upper rich segments are need to be targeted.

3) Stylish look need to be adopted in products as per youth

demanding.

4 THREAT

1) Competition is getting tougher every day.

2) Rival companies are making their every moves to fight

competition.

3) Customers are moving towards four wheeler segment.

70
 Appendixes

PERFORMANCE HIGHLIGHTS
Q4 FY08

• Net Profit 71 % yoy 63 % yoy

• Net Interest Income 89 % yoy 76 % yoy

• Fee Income 67 % yoy 70 %yoy

• Operating Revenue 87 % yoy 77 %yoy

• Operating Profit 82 % yoy 76 % yoy

• Net Interest Margin 3.93 % 3.47 %

• Cost of Funds 5.82 % 6.02%

71
 QUESTIONNAIRE

1. ARE YOU EMPLOYED?

YES NO

If YES, only then proceed

2. DO YOU HAVE ANY INSURANCE POLICY?

YES NO

3. WHICH INSURANCE POLICY DO YOU HAVE?

LIFE NON-LIFE BOTH

4. WHICH CO’S INSURANCE POLICY YOU PREFER THE MOST?

(RANK THEM)

a) LIC

b) ICICIPRUDENTIAL

c) SBI LIFE INSURANCE

d) ING VYSYA LIFE

e) RELIANCE LIFE INSURANCE

f) TATA AIG LIFE

g) ANY OTHER ( Specify)

5. FOR HOW MANY YEARS DO YOU HAVE INSURANCE POLICY?(Please Tick)

a) 5Yrs b) 5-10 Yrs c) 10-15 Yrs d) Any Other.........................(Specify)

72
 1. WHAT DO YOU THINK ARE THE BENEFITS OF
INSURANCE COVER? (RANK THEM)

A) COVER FUTURE UNCERTAINIT

Y
B) TAX DEDUCTIONS
C) FUTURE INVESTMENT
D) ANY OTHER (Specify)

2. WHICH FEATURE OF YOUR POLICY ATTRACTED YOU TO BUY IT?

(RANK THEM)

A) LOW PREMIUM
B) LARGER RISK COVERANCE
C) MONEY BACK GUARNTEE
D) REPUTATION OF COMPANY
E) EASY ACCESS TO AGENTS
F) ANY OTHER (Specify)

3. YOUR MONTHLY INCOME?

a) 4k b)4k-8k c)8k-12k d)12k-16k e)Other (Specify)

4. DO YOU REALLY THINK INSURANCE POLICY COVER IN TODAY’S

SCENARIO IS NOT ESSENTIAL?

5. WHAT’S YOUR PERCEPTION ABOUT INSURANCE?

(RANK THEM)

a) A SAVING TOOL

b) A TAX SAVING DEVICE

c) A TOOL TO PROTECT FUTURE

73
 6. HOW HAS/WOULD YOU BOUGHT/BUY AN INSURANCE?

A) CUSTOMER APPROCHED INSURANCE COs

B) INSURANCE COs APPROCHED CUSTOMER

7. ARE YOU SATISFIED WITH THE POLICY?

A) SATISFIED SAVING TOOL

b) NOT SATISFIED

c) NOT RESPONDING

8. ARE YOU SATISFIED WITH THE SERVICE AGENT?

A) SATISFIED SAVING TOOL

B) NOT SATISFIED

C) NOT RESPONDING

9. DO YOU PAY TAXES?

YES NO

74
 10. WHERE HAVE YOU INVESTED FOR TAX SAVING?

(RANK THEM)

A) LIC

B) NSC

C) BONDS

D) PPF

E) PF

F) EPF

11. WHICH IS THE BEST FORM OF INVESTMENTS?

(RANK THEM)

A) FIXED ASSETS

B) BANK DEPOSITS

C) JEWELLERY

D) SECURITIES, i.e. Bonds, MFs

E) SHARES

F) INSURANCE

75
 12. WHAT DO YOU INTENT TO GAIN FROM INVESTMENTS?

A) SAVING & RETURNS

B) SECURITY

C) TAX BENIFITS

13. WHAT’S THE RIGHT AGE TO BUY INSURANCE?

A) AFTER 25 Yrs

B) AFTER 35 Yrs

C) AFTER 45 Yrs

D) ANYTIME

14. HOW WOULD YOU RATE INDIAN INSURANCE COs?

A) RIGID PLANS

B) NON-USER FRIENDLY

C) UNSATISFATORY SREVICES

D) NON-AGGRESSIVE

E) SATISFACTORY

F) GOOD

G) VERY GOOD

76
 15. ARE YOU PLANNING FOR NEW INVESTMENTS?

A) PLANNING B) NOT PLANING

16. WOULD YOU GO FOR INSURANCE IF A SERVICE PROVIDER AWAY

FROM THE CITY OFFERS BETTER SERVICE & PRODUCTS?

A) YES

B) NO

C) UNCERTAIN

NAME:

ADDRESS:

OCCUPATION:

77
 BIBLIOGRAPHY

Annual Report of LIC from 2004 to 2009

C.R. KOTTHARI, RESEARCH METHODOLOGY

Internet Portal

www.licindia.com
www.google.com

Releases:

Press Release 08 – 09 & 09-10 of LIC.

Analyst PPT 08 – 09 & 09-10 of LIC.
Annual Performance Report.

News Paper and Magazines:

Business World April – June Editions.

4P’s of Marketing April – June Editions.
Economic Times April – June Editions

78
79