Index

Sr. No. Content Page No.

1 Chapter 01: Introduction to Life Insurance Corporation (LIC) 6
2 1.1 History 6-9
3 1.2 Introduction 10-11
4 1.3 Mission/Vision 12
5 1.4 Objectives of LIC 12-13
6 1.5 Types of LIC 13
1. LIC Term Insurance Plans 14-15
2. LIC Pension Plans 15-17
3. LIC Whole Life Plans 18
4. LIC Endowment Plans 19-24
5. LIC Money Back Plans 25-29
7 1.6 What is the online service provided by LIC? 30-31
8 1.7 What is the Claim Settlement Process of the LIC? 31-32
9 1.8 Riders 33
1. What are riders? 33
2. What does a rider mean in a life insurance policy? 33-34
3. Salient features of riders 35
4. Riders offered by LIC 35
10 1.9 e-insurance account 37
11 Chapter 2: Review of Literature 38-42
12 Chapter 3: Research Methodology 43
3.1 Introduction 43
3.2 Types of Research 43
3.3 Objective of Research 43
3.4 Hypothesis 43
3.5 Limitations 43
3.6 Population Sample 44
3.7 Data Collection 44
13 Chapter 4: Data Analysis 45-57
14 Chapter 5: Findings, Suggestions and Conclusions 58
1. Specific Findings of LIC’s Policy 58-60
2. General Findings of LIC’s Policy 60
3. Suggestions 61
4. Conclusions 62
15 Annexures 61-65
16 Chapter 6: Bibliography 66

1
 Chapter 01:
Introduction To Popularity of Internet Banking

1.1 HISTORY
The precursor to the modern home banking services were the distance banking services over
electronic media from the early 1980s. The term 'online' became popular in the late 1980s and referred to the
use of a terminal, keyboard, and TV or monitor to access the banking system using a phone line. 'Home
banking' can also refer to the use of a numeric keypad to send tones down a phone line with instructions to the
bank.

The first home banking service was offered to consumers in December 1980 by United American Bank, a
community bank with headquarters in Knoxville, Tennessee. United American partnered with Radio Shack to
produce a secure custom modem for its TRS-80 computer that allowed bank customers to access their account
information securely. Services available in its first years included bill pay, account balance checks, and loan
applications, as well as game access, budget and tax calculators and daily newspapers. Thousands of customers
paid $25–30 per month for the service.

Large banks, many working on parallel tracks to United American, followed in 1981 when four of New York's
major banks (Citibank, Chase Manhattan, Chemical, and Manufacturers Hanover) offered home banking
services,[2][3][4] using the videotex system. Because of the commercial failure of videotex, these banking
services never became popular except in France (where millions of videotex terminals (Minitel) where given
out by the telecom provider) and the UK, where the Prestel system was used.

The first videotext banking service in France was launched on December 20, 1983, by CCF Bank (now part of
HSBC). Videotext online Banking services eventually reached 19% market share by 1991

The developers of United American Bank's first-to-market computer banking system aimed to license it
nationally, but they were overtaken by competitors when United American failed in 1983 as a result of loan
fraud on the part of bank owner Jake Butcher, the 1978 Tennessee Democratic nominee for governor and
promoter of the 1982 Knoxville World's Fair. First Tennessee Bank, which purchased the failed bank, did not
attempt to develop or commercialize the computer banking platform.

When the clicks-and-bricks euphoria hit in the late 1990s, many banks began to view web-based banking as a
strategic imperative.[6] In 1996 OP Financial Group, a cooperative bank, became the second online bank in the
world and the first in Europe.[7] The attraction of banks to online banking are fairly obvious: diminished
transaction costs, easier integration of services, interactive marketing capabilities, and other benefits that boost
customer lists and profit margins. Additionally, online banking services allow institutions to bundle more
services into single packages, thereby luring customers and minimizing overhead.

A mergers-and-acquisitions wave swept the financial industries in the mid- and late 1990s, greatly expanding
bank's customer bases. Following this, banks looked to the Web as a way of maintaining their customers and

2
building loyalty. A number of different factors are causing bankers to shift more of their business to the virtual
realm.

While financial institutions took steps to implement e-banking services in the mid-1990s, many consumers
were hesitant to conduct monetary transactions over the internet. It took widespread adoption of electronic
commerce, based on trailblazing companies such as America Online, Amazon.com and eBay, to make the idea
of paying for items online widespread.

By 2000, 80% of U.S. banks offered e-banking. Customer use grew slowly. At Bank of America, for example,
it took 10 years to acquire 2 million e-banking customers. However, a significant cultural change took place
after the Y2K scare ended.

In 2001, Bank of America became the first bank to top 3 million online banking customers, more than 20% of
its customer base.[8] In comparison, larger national institutions, such as Citigroup claimed 2.2 million online
relationships globally, while J.P. Morgan Chase estimated it had more than 750,000 online banking customers.
Wells Fargo had 2.5 million online banking customers, including small businesses. Online customers proved
more loyal and profitable than regular customers. In October 2001, Bank of America customers executed a
record 3.1 million electronic bill payments, totaling more than $1 billion. As of 2017, the bank has 34 million
active digital accounts, both online and mobile.[8] In 2009, a report by Gartner Group estimated that 47% of
United States adults and 30% in the United Kingdom bank online.[9]

The early 2000s saw the rise of the branch-less banks as internet only institutions. These internet-based banks
incur lower overhead costs than their brick-and-mortar counterparts. In the United States, deposits at most
direct banks are FDIC-insured and offer the same level of insurance protection as traditional banks.

Online banking started in the United Kingdom with the launch of Nottingham Building Society (NBS)'s
Homelink service in September 1982, initially on a restricted basis, before it was expanded nationally in 1983.
[10] Homelink was delivered through a partnership with the Bank of Scotland and British Telecom's Prestel
service.[11] The system used Prestel viewlink system and a computer, such as the BBC Micro, or keyboard
(Tandata Td1400) connected to the telephone system and television set. The system allowed users to "transfer
money between accounts, pay bills and arrange loans... compare prices and order goods from a few major
retailers, check local restaurant menus or real estate listings, arrange vacations... enter bids in Homelink's
regular auctions and send electronic mail to other Homelink users."[11] In order to make bank transfers and bill
payments, a written instruction giving details of the intended recipient had to be sent to the NBS who set the
details up on the Homelink system. Typical recipients were gas, electricity and telephone companies and
accounts with other banks. Details of payments to be made were input into the NBS system by the account
holder via Prestel. A cheque was then sent by NBS to the payee and an advice giving details of the payment
was sent to the account holder. BACS was later used to transfer the payment directly.

3
  Some of the importones milestones in the internet banking

In 1996 Industrial Credit and Investment Corporation of India was the first to use Electronic banking in India
by introducing online banking services in branches. Its initiatives were followed by HDFC Bank, IndusInd
Bank and Citibank, who started provided online banking facilities in 1999.

4
1.1 Introduction:
LIC is the only public sector life insurance company in India. It was founded
in 1956 with the merger of more than 245 insurance companies and provident
societies. LIC of India has its headquarters in Mumbai, the commercial capital of
India. The Life Insurance Corporation currently functions with 08 zonal offices and
113 divisional offices.

The Life Insurance Corporation is the largest life insurance company in India
with over 2000 branches and over 14 lakh agents to solicit life insurance business in
the country. The LIC of India provides a wide range of life insurance plans from
pure term insurance plans to savings and investment products. LIC of India has a
phenomenal presence in both urban and rural India. The motto of the Life Insurance
Corporation is “Yogakshemam Vahamyaham” which means – your welfare is our
responsibility.

As of today, LIC of India functions with a network of 15,37,064 individual

agents, 342 corporate agents, 109 referral agents, 114 brokers and 42 banks. LIC
has 2048 fully computerized branch offices, 113 divisional offices, 1381 satellite
offices and over 08 zonal offices with the head office located in Mumbai. LIC was
rated as the No. 06 Most Trusted Service Brand of India by the Economic Times
Brand Equity Survey 2012. From the year 2006, LIC of India has been regularly
winning the ‘Readers Digest Award’. Also, as per the Brand Trust Report, for 04
continuous years, LIC of India was reported to be India’s most trusted brand in the
BFSI category.

5
6
1.2 Mission/Vision:
The mission of Life Insurance Corporation of India is to enhance the quality of
living of the people by providing financial products and services that provide
competitive returns.

Mission: “Ensure 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”

1.3 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 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.

7
  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.

1.4 Types of LIC:

As a pioneer of life insurance in India, the Life Insurance Corporation offers a
wide range or comprehensive insurance products to its diverse customer base and
maximizes the ability of savings of the insurance holder. LIC of India focuses
majorly on safeguarding the interests of the insurance holder and acts as trustees in
their individual as well as collective abilities. Let us take a look at the various types
of plans from Life Insurance Corporation.

The types of LIC policies are:

i. LIC Term Insurance Plans

ii. LIC Pension Plans

iii. LIC Whole Life Plans

iv. LIC Endowment Plans

v. LIC Money Back Plans

8
1. LIC Term Insurance Plans:
LIC term plans protect the insured at affordable costs. The LIC plan assures
substantial advantages in case of the death of the policyholder during the term of
the plan. The LIC of India usually does not pay maturity value under such plans if
the individual survives until the term of the plan ends. The term policy comes at a
low cost and caters to high coverage at lower premium rates.
The term plans offered by the Life Insurance Corporation of India are as under:

LIC Term Entry Age Maximum Policy Term Minimum

Plans Maturity Age Sum Assured
LIC Tech 18-65 years 80 years 10-40 years Rs. 50,00,000
Term
LIC Jeevan 18-65 years 80 years 10-40 years Rs. 25,00,000
Amar

a) LIC Tech Term:

It is a pure risk premium plan that provides security in term of finances to the
family of the policyholder under any unfortunate circumstances during the policy
tenure. This LIC plan can be bought from the online.
Features:
 It offers longer protection for up to 40 years.
 No age boundaries and is available for anyone who is 18 years of age and
above.
 For the non-smokers a rebate on the premium and also who have sound
health.

Benefits:
 The flexibility of paying the premium with three choices namely single,
limited and regular premium.
 The nominee upon the demise of the insured will receive the sum assured
during the policy term.
 In case you do not consume any of the toxic substances, you will get health
rewards at the time of purchasing the plan.
 The females can avail the plan at a special price.

9
 b) LIC Jeevan Amar:
The protection plan offers the flexibility to choose between two benefit options
and is also available for women at a special price.

Features:
 It offers the flexibility to select between two options of benefit that are
increasing sum assured and level sum assured.
 Can easily enhance the cover by choosing the rider options.
 Two sections of premium rates for both smokers and the non-smokers.

Benefits:
 Anyone who maintains a healthy lifestyle can avail the plan at a special
price.
 The assured individual can enjoy low premium rates when opted for high
sum assured. The special rate is on the premise of life assured’s age.
 Two alternatives to death benefit payment, that is an instalment and a lump
sum. In case the assured had liabilities, then choosing the lump sum option is
a better thought and in case the money is needed to support the family then
opting for instalment is better.

2. LIC Pension Plan:

Everyone intends to save enough and live a financially protected retirement life.
LIC of India offers several pension plans to guarantee financial stability in old age.
These are the three pension plans that LIC of India offers:

LIC Pension Plans Plan Type Entry Age Minimum Sum

Assured
LIC New Jeevan Deferred annuity 30-79 years NA
Shanti Options
LIC Jeevan Individual 30-85 years except NA
Akshay - VII Immediate for Option F and
Annuity Plan 100 years for
Option F
Pradhan Mantri Pension Scheme 60 years-No limit NA
Vaya Vandhana
Yojana

10
a) LIC New Jeevan Shanti:
In the LIC New Jeevan Shanti plan, is the single premium plan wherein a
policyholder has an alternative to select between joint life and single life
deferred annuity. At the intimation of the plan, the rates have been guaranteed
and the annuities will be payable post deferment term throughout the annuitant
lifetime.
Features:
 It is a single lump sum and paid pension plan where a pension income or a
deferred annuity can be received.
 The annuity is payable either monthly, half-yearly, quarterly or yearly.
 The minimum deferment term is a year and can go up to 12 years and can
be bought both offline as well as online.

Benefits:
 Within the deferred annuity, at the end of each month of the policy, the
guaranteed additions will be accrued only until the period of deferment
ends.
 The survival benefits are payable within two options namely deferred
annuity for the joint-life and single life.

b) LIC Jeevan Akshay – VII:

The LIC of India offers the Jeevan Akshay – VII plan; the policyholder has
the option to select the sort of annuity from ten options available by paying a
lump sum amount. The rates of the annuity are guaranteed during the intimation
of the policy and are payable throughout the life of annuitant.

Features:
 The key features of this plan is that it offers ten annuity options.
 A loan can be easily availed after the policy has been issued for three
months or after the expiry of the period of free-look.
 The annuities will be payable throughout the life of the annuitant and the
rates are mostly guaranteed whenever the policy commences.
 In case, if the plan is bought at Rs. 5,00,000 and more, then an incentive is
available that also increases the rate of an annuity.

11
 Benefits:
 The annuity payments are taxable within the rate of marginal income tax.
 For the equivalent, buying sum gets a higher pension when the plan is
purchased online.

c) Pradhan Mantri Vaya Vandhana Yojana:

The Pradhan Mantri Vaya Vandhana Yojana has been introduced by the
Indian Government. This scheme essentially provides the pension that is assured
of 7.40% that is payable every month. Besides, the LIC of India is solely
authorized for this scheme to operate.

Features:
 The plan has no maximum entry age.
 The pension mode of the plan is monthly, quarterly, yearly and half-
yearly.
 The highest pension sum in criteria within the plan is the complete family.
Benefits:
 On the completion of the policy term, the last purchase cost and the final
pension instalment is paid to the pensioner.
 When the pensioner survives, the policy tenure the pension will be paid as
per the chosen pension mode.
 One can avail loan within this policy only after the completion of 03 years
of the term of the policy.

12
3. LIC Whole Life Plan:
LIC of India also offers a whole life plan for a better and secured tomorrow. The
following is the plan that LIC of India offers and one can make a choice:

LIC Whole Entry Age Maximum Policy Term Minimum

Life Plan Maturity Age Sum Assured
LIC Jeevan Complete 90 100 years 100- Age at Rs. 2,00,000
Umang days to 55 Entry
years

a) LIC Jeevan Umang:

The LIC of India offers a plan, which is a blend of both protection and
income to the family. It provides yearly survival benefit from the premium
payment term ends until maturity and a lump sum payment at maturity or upon
the demise of the policyholder during the policy tenure. This plan can be bought
from the LIC online.
Features:
 The large sum assured is accessible within this plan.
 It is an amalgamation of both fixed pay and routine income.
 The simple revisionary bonus will be payable upon early demise or the
maturity.
 Enables to fulfil the policyholder’s liquidity requirements as well as in
case of a loan, etc.

Benefits:
 Upon demise, before the commencement of risk, a sum equivalent to the
complete sum of premium paid will be given without any interest.
 The premiums are tax exempted within Section 80C. Moreover, the
maturity and death sum also remain tax exempted within Section 10(10D).

13
4. LIC Endowment Plans:
The LIC of India offers endowment plans with additional benefits. For instance,
a few plans take part in company gains while other plans produce savings via
making investments in the equity market. These are the endowment plans that LIC
of India offers:
LIC Entry Age Maximum Policy Term Minimum
Endowment Maturity Age Sum Assured
Plans
LIC New 8-55 years 75 years 12-35 years Rs. 1,00,000
Endowment
Plan
LIC Single 90 days to 65 18-75 years 10-25 years Rs. 50,000
Premium years
Endowment
Plan
LIC New 18-50 years 75 years 15-35 years Rs. 1,00,000
Jeevan Anand
LIC Jeevan For 16 years: 75 years 16, 21 and 25 Rs. 2,00,000
Labh 8-59 years years
For 21 years:
8-54 years
Fr 25 years: 8-
50 years
LIC New 15-50 years For 09 years: 9, 12 and 15 For 09 years:
Bima Bacchat 59 years years Rs. 35,000
For 12 years: For 12 years:
62 years Rs. 50,000
For 15 years: For 15 years:
65 years Rs. 70,000
LIC Aadhar 08-55 years 70 years 10-20 years Rs. 75,000
Shila
LIC Jeevan 18-50 years 65 years 13-25 years Rs. 1,00,000
Lakshya
LIC Aadhar 08-55 years 70 years 10-20 years Rs. 75,000
Stambh

a) LIC Endowment Plan:

LIC New Endowment Plan is a non-linked, participating scheme that
provides an alluring combo of saving and protection features. This combo offers
fiscal support for the deceased insured’s family any time before the policy gets
matured and a good amount in a lump sum during the maturity for the surviving
insured. This plan from the LIC of India also make sure to take care of the
liquidity requirements via the loan facility.

14
 Features:
 In case of survival at the end of the policy tenure, the benefits are paid to
the survivor.
 With this plan huge sum assured rebate is accessible along with assured
bonus and returns.
 In case when the insured passes away, the death benefit will be payable
to the nominee and the policy will terminate.

Benefits:
 The insured can easily avail loan within this; however, the sum will be
decided upon the surrender value and the terms and conditions of the
policy.
 Include the rider benefit options and enhance the policy cover such as
disability benefit rider and accidental death.

b) LIC Single Premium Endowment Plan:

It is a non-linked, participating protection-cum-savings where you can pay a
premium in a lump sum at the onset of the plan. This combo offers financial
protection aligned with demise during the term of the policy with the provision
of payment of lump sum at the end of the term of the chosen policy in the case
of survival of the policyholder. This scheme also makes sure of the liquidity
requirements via the facility of loan.

Features:
 There is no upper limit of quoting the sum; however, the sum has to be in
the multiples of 5000.
 The policy offers bonuses such as reversionary and final addition bonus.

15
 Benefiits:
 After the initial year of the policy, a loan facility will be availed.
 The policyholder will avail tax benefits for the premiums paid and the
received claims.

c) LIC New Jeevan Anand:

It is a non-linked, a participating plan that provides an attractive combo of
savings and protection. This combo offers fiscal protection against the demise
all through the lifetime of the insured with the provision of payment of the lump
sum amount at the termination of the term of the chosen policy in the case of his
survival.

Features:
 The loan can be availed within the plan if a surrender value is acquired.
 The option of regular premium payment is provided by the policyholder.
 The rebates in premium are permitted for selecting the high level of sum
assured and also paying premiums semi-yearly or yearly.

Benefits:
 The policy can be easily revived less than two years right from the initial
date of the unpaid premium and paying the premiums with other
expenses and interest.
 The premiums are available at a special rate that is accessible on high
sum assured.

d) LIC Jeevan Labh:

It is a non-linked, limited premium paying endowment life insurance plan
that offers both protection and savings to the policyholders. The scheme of LIC
of India provides both maturity and death benefits together with gain
participation bonuses.

16
 Features:
 Flexibility to choose policy term from 16 years, 21 years and 25 years.
 Free-look period of 15 years from the issue date of the policy.
 This policy offers a revival period of two years.

Benefits:
 This policy let you avail perks in the form of rebates.
 In case the policyholder survives, then the insured will avail benefits
such as sum assured upon maturity, final additional bonuses and simple
reversionary bonuses.

e) LIC New Bima Bacchat:

This is a money-back plan that provides financial security against demise
during the policy tenure with the provision of making payments of the survival
benefit at a certain point in time within the policy tenure. Besides upon maturity,
the single premium will be returned with the loyalty additions and also takes
care of the liquidity requirements with its facility of loan.

Features:
 The policyholder at the beginning of the policy tenure needs to pay the
premium as the lump sum.
 The policyholder who opts for a high sum assured is provided with the
rebates.
 Upon completion of the policy tenure, a one-time premium is returned to
the policyholders with the loyalty bonus applicable.

Benefits:
 The loyalty additions will be paid at a Corporation’s discretion. On the
premise of the profits of the corporation, the loyalty additions for the
policyholder will be declared.
 The maturity benefit will become payable in case the insured survives the
policy term duration.

17
f) LIC Aadhar Shila:
LIC Aadhar Shila policy caters to a combo of savings and protection. This
scheme is wholly designed for females who have Aadhaar Card that is issued by
the Unique Identification Authority of India (UIDIA). This policy of LIC of
India offers fiscal security for the insured’s family in the case of unforeseen
demise of the insured any time before the policy gets matured and a lump sum at
the maturity of the policy for the surviving insured.

Features:
 This plan is exclusively available only for females.
 The maturity sum is tax-exempted within Section 10 (10D).
 Accessibility to take a loan after the completion of three years of the
policy.

Benefits:
 In case the policyholder passes away a death benefit will be received by
the nominee.
 If the loyalty additions are declared it will be payable as part of the death
benefit when the demise incurs after 05 policy years.

g) LIC Jeevan Lakshya:

It is a non-linked, participating scheme offering a combo of savings and
protection. This scheme caters to Annual Income benefit, which might help to
fulfil the requirements of the insured’s family, mainly for the children’s benefits,
in the case of unforeseen death of the insured any time before the policy gets
insured and a lump sum at the time of policy’s maturity heedless of the
policyholder’s survival.

Features:
 Enhance the policy and choose rider benefit options.
 The policy term could be selected between 16-25 years.
 An alternative of electronic clearance service that facilitates easy
premium payment.

18
 Benefits:
 If the premiums have been duly paid and the policyholder happens to
survive the policy tenure, then a maturity benefit can be availed.
 The premiums paid within this plan and the maturity sum is eligible for
tax benefit.

h) LIC Aadhar Stambh:

It is a non-linked, participating scheme offering a combo of savings and
protection. This scheme caters to annual income benefit, which might help to
fulfil the requirements of the insured’s family, mainly for the children’s benefits,
in the case of unforeseen death of the insured any time before the policy gets
insured and a lump sum at the time of policy’s maturity heedless of the
policyholder’s survival.

Features:
 Multiple alternatives to select the amount of the sum assured.
 Enhance the policy by choosing rider options.
 Flexibility to choose the policy terms as per the convenience.

Benefits:
 In case of the passing away of the insured, a death benefit will be
received by the nominee.
 On surviving the policy period, the sum assured upon maturity and the
loyalty additions will be received.

19
5. LIC Money Back Plans:
Money back plans are life insurance policies that provide life cover during the
policy term and payment of maturity benefit is made in instalments via survival
advantages every 05 years. There are several schemes with valid terms under this
policy offered by LIC of India. Most of these schemes provide optional riders
together with tax benefits.

LIC Money Entry Age Maximum Policy Term Minimum

Back Plans Maturity Age Sum Assured
LIC Jeevan For 14 years: For 14 years: 14, 16, 18 and Rs.
Shiromani 18-55 years 69 years 20 years 1,00,00,000
For 16 years: For 16 years:
18-51 years 67 years
For 18 years: For 18 years:
18-48 years 66 years
For 20 years: For 20 years:
18-45 years 65 years
LIC Jeevan 90 days to 12 25 years 25-entry Age Rs. 75,000
Tarun years
LIC New 13-50 years 70 years 20 years Rs. 1,00,000
Money Back
Plan-20 years
LIC New 0-12 years 25 years 25-Entry Age Rs. 1,00,000
Children’s
Money Back
Plan
LIC New 13-45 years 70 years 25 years Rs. 1,00,000
Money Back
Plan-25 years

a) LIC Jeevan Shiromani:

It is a non-linked, limited premium payment, the with-profit money-back
insurance plan that provides both the benefit of savings and protection. This LIC
of India plan is specifically designed for individuals with high net worth. The
plan provides financial backup to the family of the insured in case of any
eventuality. Moreover, like a money-back policy. It also provides periodic
payment to the insured in case of survival at a specific period during the tenure
of the policy. The lump sum amount is paid as maturity benefit to the insured
after the completion of the policy tenure.

20
 Features:
 After the completion of the initial year, this plan permits you to get the
paid-up immediately.
 Flexibility to pay the premium as per the preference and chose monthly,
yearly, quarterly or semi-yearly.
 Enhance the policy by simply choosing suitable rider benefit options
such as accidental benefit rider, disability benefit rider, critical illness,
etc.

Benefits:
 Upon demise within the initial 05 years, death benefit and accrued
guaranteed addition will be payable.
 Upon survival of the insured, a basic sum assured that is a fixed
percentage shall be payable.

b) LIC Jeevan Tarun:

It is a non-linked, participating, limited premium payment scheme that offers
an exclusive combo of savings and protection feature for kids. This scheme is
particularly designed to meet the requirements of the kids including, education,
marriage, etc. via annual survival benefit payments from 20-24 years and
maturity benefit at the attainment of 25 years of age.

Features:
 The premium needs to be paid until the child turns 20 years of age and
the policy will active up to 25 years of age.
 The premium needs to be paid only till 20 years of age and the plan will
be in force until another 05 years.
 The standing sum assured with the vested bonus will be paid to the child
as the maturity benefit.

21
 Benefits:
 When the life assured survives the policy tenure then the sum assured,
which is percentage is fixed is payable upon maturity.
 This plan is entitled to participate in the profits of the corporation and
obtain simple reversionary bonuses and any other final addition bonus
wherein the claim is made either due to demise or the maturity is
provided when a policy is active.

c) LIC New Money Back Plan-20 years:

New Money Back Plan-20 years is a participating, non-linked plan that offers
an alluring combo of savings and protection against the demise of the
policyholder during the term of the policy together with the periodic payments
on the survival of the insured at particular durations throughout the term. This
distinctive combo offers financial support for the loved ones of the departed
insured any time before the policy gets matured and a lump sum when it matures
for the surviving insured. This scheme also ensures liquidity requirements via
the loan facility.
Features:
 Pay the annual premium for 15 years.
 If the policy acquires a surrender value, the loan facility can be availed.
 There is no upper cap to the sum assured so you can select a higher
amount as well.
 From the payout of the death benefit, the survival benefits paid up will
not be deducted.

Benefits:
 When the life assured survives until the maturity, the 40% of a basic sum
assured including the simple reversionary and final addition bonus will
also be paid.
 When the policyholder survives the policy period then a nominee is
entitled to receive 20% of the basic sum assured towards the end of every
5, 10 and 15 years of the policy.

22
d) LIC New Children’s Money Back Plan:
The New Children’s Money Back Plan is a distinctive scheme planned to
provide multiple requirements of growing kids, counting on to their education,
marriage, etc. This non-linked, participating money back LIC of India plan
comes with survival benefits along with the risk cover for the kids.

Features:
 An alternative to revive the policy less than 02 years by paying all the
unpaid premiums.
 A plan specifically designed to cater to the interest of the children and
provides cover to the child during the policy period.
 To cater to any sort of emergencies, a loan can also be availed.

Benefits:
 The maturity benefit, which is equal to a sum assured and the bonuses
accrued within the period will likely be paid.
 Rebates can be availed on the higher premium sum that will lead to
saving money.
 To obtain an assured surrender value, post the completion of 03 years of
the policy can be surrendered.

e) LIC Money Back Plan-25 years:

New Money Back Plan-25 years is a non-linked, participating policy that
offers an appealing combo of savings and protection against the demise of the
insured during the term of the policy together with the cyclic payments on the
survival of the insured at particular throughout the time. This exclusive combo
from LIC of India offers financial aid for the loved ones of the departed insured
any time before it gets matured and a lump sum while the maturity for the
surviving insured. This scheme also makes certain the liquidity requirements via
loan facility.

23
Features:
 Enhance the policy cover by opting for various rider benefit options.
 As per the rules, 30 days of the grace period is provided and 15 days of
the cooling period.
 Rebates upon the high basic sum assured half-yearly and yearly modes of
premium payment.

Benefits:
 15% of the basic sum assured will be payable towards the end of every 5,
10, 15 and 20 years of the policy. Such a benefit will be payable of the
survival of the life insured to the end of a certain duration within the
policy period where the policy is still active.
 The facility of the loan can be accessed when the 03 years of premium
payment has made successfully.

24
1.5 What is the online service provided by LIC?
The Life Insurance Corporation of India is India’s oldest and trusted insurance
provider. With the varying needs of the customer, it has initiated LIC e-services for
the convenience of the customers. Right from the registering a policy to paying the
premium amount, the LIC e-services have made the customer journey smoother.
You can easily visit the LIC e-service page on the official website of LIC of
India and get details in a hassle-free manner at any point in time from anywhere.
Any LIC customer can avail the LIC e-services. The LIC online services permit
the existing policyholder to get them registered online and keep a track on every
update in regards to the policy and make the LIC premium payment online
including various other services. The key aspect of using the LIC e-services is that
you can easily register the spouse along with the children and the policy and not
take stress in regards to adding them separately and remembers the password or
usernames respectively.

The LIC online service provide the customers with the facility to solve any
policy-related query and problems. With this, you need not visit any agent for any
work. Listed below are the online services offered by the LIC for a customer-
friendly journey:
 Primarily, the online payment through various modes available such as
credit/debit card BHIM, net-banking, UPI.
 Easily review the status and the policy updates.
 Checking the details of the loan status.
 Deletion or the addition of the nominee names.
 Availing loan on service request registration for the equivalent.
 Availing information in regards to schemes and details of different LIC
insurance plans.
 The registration of complaints online that is associated with the insurance
policy.

Now, let us take a quick understanding of the following features offered within
LIC online service:
 Policy Schedule: The policy bond comprises of the policy schedule. The
initial page will show the schedule.
 Revival Quotes: In case the policy lapses then it will show a revival quote
on the screen.
 Status of Bonus: The complete accrued bonus until the time can easily be
checked, which is paid during the last final payment within the LIC policy.

25
  Status of Claim: The dates for a different benefit such as survival or the
maturity benefit that is unpaid during policy tenure will be displayable as the
claim status. This is because you can then proceed further with the settlement
of the claims if applicable.
 Status of Loan: Any outstanding loan sum and the dues for the interest and
loans paid within the plan will also be shown.

1.6 What is the Claim Settlement Process of the LIC?

The settlement of claims is one of the most important aspects of the services to
the policyholders. Therefore, LIC of India has emphasized greatly on the settlement
of both maturity and the death claims.
Let us understand the procedure of settling the LIC maturity and death claims
listed below:
 Maturity Claims: In case the policy is an endowment type then the sum is
payable at the end of the policy term. The branch office that serves the policy
will send a letter that will inform the date on, which the policy money is
payable to the policyholder either 02 months before or after the payment due
date. The policyholder is then requested to return a discharge form that is
duly completed with the document of the policy. With the receipt of the 02
documents, post-dated cheque is then sent by post in the name of the
policyholder before the date of due.

With plans like a money-back plan will provide periodical payments to the
policyholder only if the due premium within the policy is paid-up to the due
anniversary for the survival benefit. In such cases wherein the sum payable is less
than Rs. 60,000 then cheques are most likely released without calling for a policy
document in the discharge receipt. In case the amount is high then these 02
requirements will be insisted upon.
 Death Claims: The death claim sum is payable when the premiums are duly
paid or demise occurs under the grace period. Whenever the intimation of the
life assured’s demise is received the branch office will call for the listed
below requirements
 The Claim Form A: It is essentially the statement of the claimant and
passed away.
 From the death registered the certified extract.
 In case the age is not admitted then evidence to substantiate the same.

26
  Proof of title to the deceased’s estate in case the policy isn’t assigned,
nominated or issued within the MWP Act (Married Women’s Property Act).
 The original papers of the policy documents.

Moreover, there are some other forms which is required additionally if the
demise occurs less than 03 years’ right from the date of reinstatement/revival or risk
as listed below:
 Claim Form B: A certificate for the medical attendant that is completed by
the deceased’s medical attendant during the last illness.
 Claim Form B1: In case the treatment in the hospital was received by the
life assured.
 Claim Form B2: This should be duly completed by the deceased life
assured’s a medical attendant who treated for last.
 Claim Form C: A certificate of identity and cremation or burial that is
completed and signed by the person who is known responsibility and
character.
 Claim Form E: The employment certificate if the life assured was an
employed individual.
 The copies of the post-mortem report, first information report and the
investigation of police in case the demise was due to an unnatural cause or an
accident.

Such additional forms will be required to substantiate the genuineness of the

claim wherein no material details would likely affect the acceptance of the proposal
that has been withheld during the time of proposal by the deceased. Let us also
understand the LIC rider benefit claim as well as listed below:
 Disability Benefit Claims: It essentially consists of the waiver of future
premiums within the policy and the disability benefit extended that consists
of the monthly payment benefit as per the conditions of the policy. The key
condition to claim this benefit is the complete and permanent disability to
preclude the individual from earning any profit, compensation or wage as the
result of such an accident.
 Double Accident Benefits Claims: It provides the injection to a life
insurance cover. An extra premium that costs up to Rs. 1 for every Rs. 1,000
sum assured is charged. To claim the benefit within this the claimant will
have to produce the evidence that satisfies the corporation that the mishap is
defined as per the conditions of the policy. Document such as the copy of the
FIR, report of the post-mortem is mostly insisted upon.

27
1.7 Riders:
When it comes to life insurance plans, the Life Insurance Corporation of India
offers every type of life insurance plan. It has traditional life insurance plans which
provide guaranteed savings for future financial requirements as well as unit-linked
insurance plans which give customers the benefit of market-linked returns. There are
child plans and pension plans also which cater to specific financial goals. Besides the
variety of life insurance plans, LIC also offers riders which help to give you extra
coverage under a basic plan.

In critical situations like these, Riders come in very handy. Riders are add-on
schemes that can be added to a vanilla policy, that may be a unit-linked plan, term
policy or an endowment plan. They are not attached to the insurance policy and are
completely optional.

However, when added to the policy, at the time of occurrence of a particular event,
they give a financial cover which is over and above the sum assured. In simple words,
Riders conditional additions that help an individual in enhancing his insurance
coverage and making it more extensive and powerful.
Let’s understand riders and the types of riders offered by LIC:

1. What are riders?

Riders are additional coverage options which are available with life insurance
plans. When buying a life insurance policy, you can opt for riders by paying an
additional premium. The opted rider would provide coverage against a specified
eventuality. If the contingency, which is covered by the chosen rider, occurs
during the policy tenure, the rider benefit is paid.

2. What does a rider mean in a life insurance policy?

How do you increase the life insurance element in a bundled plan? You can do
that by buying a term life rider. A rider is an add-on cover to the base policy that
provides additional benefits. Life insurance companies offer a range of optional
riders that you can buy at an additional premium to suit your needs. Read for
more details on riders.

A rider is an optional add-on to a policy, which is explained in the product

brochure. So you can buy a rider as long as the product offers you that option.
Typically, you need to choose the rider at the time of buying the policy. There are
a host of riders that life insurance companies offer. The most popular ones are
accidental death and permanent disability riders. Under this, if death of the
policyholder occurs due to an accident then, apart from paying the life insurance
benefit promised under the base policy, the policy will also pay an additional sum

28
insured as specified in the rider. In case an accident leaves the policyholder
permanently disabled, the rider will pay the specified sum insured.

Critical illness is also a common rider that pays a lump sum if the policyholder
contracts any of the specified critical illnesses. Other than this, a waiver of
premium rider is very popular with bundled policies. Under this rider, if an
insured person dies during the policy term, the rider funds the future premiums
due. Thus, on maturity, the beneficiary is able to receive the maturity benefits as
planned. Bundled plans also offer a term insurance rider in order to enhance the
insurance cover. A term rider is a term insurance policy that pays the sum assured
on death of the policyholder. Keep in mind that since most of these riders are
defined-benefit plans, the benefits are fixed against an insured event. Once the
rider policy is claimed, the rider terminates; and the base plan continues as per its
terms.

Since a rider is attached to a base policy, the insurer gets to save on costs. The
benefits of this get passed on to you and you may end up buying a rider a tad
cheaper than a standalone policy. A quick check shows that a critical illness rider
for a 30-year-old and for a sum assured of Rs10 lakh would cost around Rs3,741.
Whereas, a similar stand-alone policy would cost about Rs4,425. The other
advantage of a rider is that the premiums remain the same and of course there is
convenience of managing just one policy.

Beware of the caveats. Do go through the rider benefits in detail and compare
them with a stand-alone policy to understand the coverage, a lower premium in a
rider could also be due to a less comprehensive coverage. Also, keep in mind that
since it’s a rider policy, it will only continue till such time that the base policy is
in force. So, if you choose to surrender the base policy, you will have to forgo
your rider benefits too. Also, the coverage of the rider is limited as per
regulations. As per the rules, the premium of health related riders can’t be more
than 100% of the premium under the basic product and premiums of all other
riders put together can’t be more than 30% of the premium under the base policy.
Also, any benefit from the rider cannot exceed the sum assured under the base
policy.

29
3. Salient features of riders:
Life insurance riders have the following salient features:
 Riders are optional in nature and can be selected when buying the policy.

 An additional premium is paid for each rider that you select. However, the
premium rate is very low.

 You can select as many riders as you can provide that the total
rider premium does not exceed 30% of the premium of the base
policy.

 Riders have no maturity benefit. The rider benefit is payable only if

the contingency covered by the rider occurs.

4. Riders offered by LIC:

LIC offers five types of riders which are as follows:

a) LIC’s Linked Accidental Death Benefit Rider:

This rider covers accidental death which occurs during the term of the plan.
In case of accidental death, the rider sum assured is paid along with the base
plan’s death benefit. Other benefits of the rider include the following:
 The rider can opt either when buying the policy or at any
policy, anniversary provided you are below 65 years of age.

 The premium is low. It is INR 0.40 per INR 1000 rider sum assured

b) LIC’s Accidental Death and Disability Benefit Rider:

This rider is a step above the earlier rider. Besides covering accidental
death, the rider also covers disabilities suffered due to an accident during the
term of the plan. Here are the features and benefits of the rider:
 The lump sum rider sum assured is paid in case of accidental death.
 In case of permanent and total accidental disability, the rider sum assured is
paid in monthly instalments for ten years post the disability.
 The premium of the rider is very low and affordable.

30
c) LIC’s Accident Benefit Rider:
This is also an accidental benefit rider which pays an additional sum assured
in case of accidental death during the term of the plan. The features of the rider
include the following:
 Coverage up to the base plan’s sum assured can be taken subject to a
maximum limit.
 The rider can be chosen when buying the policy or at any policy
anniversary.

d) LIC’s New Critical Illness Benefit Rider:

This rider covers specified critical illnesses. If the insured suffers from any
of the covered illnesses, a lump sum benefit is paid on such diagnosis. The
features and benefits of the rider are as follows:
 15 critical illnesses are covered by the rider. Common illnesses which are
covered include cancer, open chest CABG, first heart attack, kidney failure,
stroke, etc.
 Coverage up to 75 years of age is allowed.
 Maximum sum assured which can be taken under the rider is INR 25 lakhs.
 The rider also has a paid-up value if the base plan is made paid-up.

e) LIC’s New Term Assurance Rider:

This rider pays a benefit if the insured dies during the term of the policy
irrespective of the nature of death being accidental or natural. The features of
the rider are as follows:
 The maximum sum assured available under the rider is INR 25 lakhs.
 The rider can be taken for a maximum term of 35 years.
 You get premium rebates on the rider premium too if a high level of sum
assured is chosen.

31
1.8 e-Insurance Account:
The world is moving towards using less paper and to electronic records,
especially financial records.

Shortly you too can get and maintain your insurance policies in electronic
form. IRDAI has issued guidelines relating to insurance repositories and
electronic issuance of insurance policies.

You can:
 Maintain, store and retrieve your policies and the information in them
easily.
 You can modify or revise your insurance policies with speed
and accuracy.
 It will help increase efficiency and transparency.
 It will reduce the cost of issuing and maintaining insurance policies.

32
 Chapter 2
Review of Literature

1. Research Paper 01: Customer Satisfaction towards Life Insurance

Corporation with special reference to Chennai city.

Author: Maya Kannan, Sankara Arts and Science College, Enathur,

Kanchipuram -631 561, Tamilnadu, India.

Abstract of Research:
This study explores satisfaction level of customers towards Life Insurance
Corporation in Chennai city. Due to increasing awareness among people about
their uncertainty of life and increasing competition in Insurance sector, it is
significant for Insurance Companies to understand the requisite of their customers.
The main aim of this study is to know the consumer satisfaction towards LIC.
This study is based on primary data which is collected through questionnaire
among 150 policyholders in Chennai and data were analysed with multi variety
statistical tools like percentage, chi-square and ANOVA analyses were used to
identify the factors responsible for consumer satisfaction towards LIC.

2. Research Paper 02: Customer Awareness Towards Life Insurance

Investment with Special Reference to Coimbatore City.

Author: J. Gnanadevan & B. H. Singu, Assistant Professor,

Rathinam College of Arts and Science, Coimbatore, Tamil Nadu.

Abstract of Research:
Today Life insurance investment is becoming booming sector among all
segments of the people. The Coimbatore city had a population of 930,882 within
the municipal corporation limits. So, there was a huge business opportunity for the
life insurance companies to get investment from this people. With the said of
above reasons the researchers have made an attempt to understand the customer
awareness towards life insurance investment in Coimbatore city. And also the
researchers explore the market size and socio economic factors which influence
the investment in life insurance.

33
3. Research Paper 03: Performance Evaluation of Life
Insurance Corporation (LIC) of India.

Author: Dr. Sonal Nene, Assistant Professor, Smt. J.J. Kundalia Arts
& Commerce College, Rajkot – India.

Abstract of Research:
Insurance industries in India now a day have taken a giant shape especially
after privatization and introduction of Insurance Regulatory & Development
Authority (IRDA). Life Insurance Corporation of India is one of the most
significant public sector which plays excellent job in selling its products. But
since last few years it is facing tremendous competition as many private players
have emerged. The idea behind this study therefore to know the growth and
performance of LIC. The researcher is going to analyze the major source of
income (Premium Earned) of the sampled unit, as well as the significant heads
of expenses of LIC to measure the performance during the period of the study.

4. Research Paper 04: Customer Preferences in Life Insurance

Industry in India.

Author: Ms. Sunayna Khurana, Lecturer, ICFAI National

College, SCO-105-107, Sec-14, Hissar, Haryana-125001.

Abstract of Research:
In today’s tough competition, every company in service sector tries hard to
satisfy their customer. In Insurance sector, various new private companies have
entered in industry by doing the merger with foreign companies. Day by day they
are offering new services with the basic plan to attract the new customers & for
retaining the present customers. In this research paper, I tried to understand
the consumer behaviour in Insurance sector. The main objective of this paper to
identify customer preference regarding plans & company, their purpose of
buying the insurance policies, satisfaction level & their future plans for new
insurance policy. Data was collected with help of structured questionnaire from
200 customers of Hissar city only. Sample was taken on the basis of
convenience sampling, but only 192 questionnaires were used for analysis as
the remaining 8 were not filled properly by the respondents. Percentage,
frequency & Cross tabulation methods have been used for analysis.

34
5. Research Paper 05: Life Insurance Industry of India – Past,
Present & Future (A Study of LIC of India).

Author: Shilpa Agarwal1, A. K. Mishra2, 1Research Scholar, Dept.

Of Commerce IEHE, Bhopal 2Professor, Dept. Of Commerce IEHE,
Bhopal.

Abstract of Research:
The Indian Life Insurance Industry has faced many obstacles and challenges
to attain its present position. With the change in the consumer perception on life
insurance and its awareness and penetration, the industry has witnessed a
remarkable growth in its business. A major cause for this upliftment is indeed the
acceptance and adaptation of liberalization privatization and globalization (LPG)
in the year 1991. After 1991 the Indian life insurance industry has geared up in all
respects, as well as it is being forced to face a lot of competition from many
national and international private insurance players. This paper is aimed at
examining the status of LIC of India in pre & post liberalized era as well as
estimating future trend of insurance business of LIC of India, as to analyse its
future position in the day- by- day enhancing competition.

6. Research Paper 06: A Study of Operating Performance of LIC of

India

Author: Dr. Hiral Parikh, Assistant Professor, K. S. School of

Business Management, Gujarat University, Ahmedabad.

Abstract of Research:
Life Insurance Corporation (LIC) of India is in its 59th year and growing very
strong. The paper attempts to focus on the Operating Performance of LIC of India
since 1998-1999 to 20013-2014 i.e. the period of 16 years. This period is a shift of
LIC of India from being into monopoly in Life insurance sector to competitive life
insurance market. The operating performance includes the Total Out go of LIC of
India and Total Income of LIC of India. Total Out go Includes Policy Payments,
Management expenses, Other out go and Total Income Includes Premium Income,
Income from Investments and Miscellaneous Income of LIC of India. The
operating Ratios are computed for the period of study and analysis is made based
on the results of the ratios. The suggestions and conclusions are based on the
findings.

35
7. Research Paper 07: Customer Satisfaction Towards Services of
Life Insurance Corporation (LIC) With Special Reference to Jaipur
City.

Author: Dr. Ruchi Jain Senior Assistant Professor, Department of

Financial Studies, The IIS university, Jaipur.

Abstract of Research:
Insurance is one significant segments of financial system. The insurance
business is unique in the sense that it is rewarded for managing the risk of other
parties. LIC of India is the biggest life insurance player in India insurance
industry, its strong brand backed by long experience and well established network
has helped it to remain on the peak. In India insurance sector is not only playing a
role within the financial system but also has a significant socioeconomic function
of providing risk cover to the poor population. The insurance business is facing
new challenges like quickly dynamic market, new technologies, economic
uncertainties, fierce competition and a lot of strict customers and therefore the
dynamic business climate. similar to firms of alternative business domains,
insurance conjointly considers their customers because the most vital plus. The
LIC aims to investigate policyholders ‘(customers ‘) perceptions and satisfaction
towards numerous services offered to the general public in the country. The study
is targeted on Policyholders residing in Jaipur town.

8. Research Paper 08: A Study on Financial Performance of Life

Insurance Corporation (LIC) of India.

Author: Rakesh H M1, Shilpa R2, 1Assistant Professor, Department

of MBA, Vidyavardhaka College of Engineering, Mysore, 2 Lecturer,
Dept. of Commerce and Management, St. Joseph First Grade College,
Mysore.

Abstract of Research:
Life insurance is an important form of social security. Insurance sector in India
have grown tremendously in the last decade and is taking a giant shape after
privatization of insurance industry. The government of India has notified the
foreign direct investment in insurance to the extent of 49% on 21st February 2015.
This may result in increased competition for LIC with other private and foreign
players in the industry. The study has been undertaken to know the financial and
operating performance of LIC with a rationale of knowing the source of income

36
 and other expenses of LIC. The period of study will be for 9 years from 2005-06
to 2013-14.

9. Research Paper 09: A Study on the Factors Influencing the

Performance of LIC of India during the Post Reform Period.

Author: Suganthamani C. V.1, Dr. M.Nagesh Kumari2 1Assistant

Professor, Ahalia School of Management, Palakkad, INDIA,
2Assistant Professor, P.S.G.R Krishnamaal College for Women,
Coimbatore, INDIA.

Abstract of Research:
The structure of the service sectors has undergone a drastic change after
liberalization, privatization and globalization of the Indian economy, in general,
and the insurance sector in particular. For almost four decades LIC had been the
sole player with virtual monopoly in the life insurance sector. In the early 90’s the
Government of India ventured into the policy of liberalization, privatization and
globalization. It was assumed that the entry of so many companies in this sector
was likely to affect the performance of Life Insurance Corporation. Thus, the Life
Insurance public sector giant, i.e. LIC, which never faced competition earlier,
would compete with the private players who boast the rich and long experience of
their partners from the developed countries of the world. They are also coming up
with different types of innovative policies and other strategic plans. It is also
expected that the total business of Life Insurance Corporation, in terms of
premium, sum assured and number of policies and its market share would get
affected. It is, therefore, necessary to study the business performance of Life
Insurance Corporation (LIC) after the liberalization policy regime and also the
changes that might have occurred or any restructuring that might have been done
by the LIC in the wake of entry of private players in the Life Insurance Sector.
Hence, it becomes imperative to evaluate the performance of Life Insurance
Corporation of India and its determinants.

37
 Chapter 3
Research Methodology:

3.1 Introduction:
The subject in hand entitled “Consumer Awareness towards LIC”.

3.2 Type of Research:

The research conducted was descriptive and analytical in nature. It is
indicative type of research.

3.3 Objective of Research:

1. To study the level of Awareness of the respondents.

2. To understand the importance of Life Insurance in human life

3. To measure the performance of LIC of India

4. To identify the factors affecting customer satisfaction in life

insurance sector

3.4 Hypothesis:
LIC is growing in good pace in current market scenario in insurance
sector and they are trying to enhance more facility in technology for
customer in modern era.

3.5 Limitations:

1. Study of Time
2. Geographical Area- Dombivli
3. Primary and Secondary Data
a) Primary data collected through questionnaire and it is
restricted to 100 customers.
b) Secondary data’s information is collected from reference book,
newspapers, magazines, websites, etc.

38
3.6 Population of Sample:
Population of Dombivli 12.46 lakhs (2019) census surveys. The
sample size taken was so people 60 students, 04 businessmen, 46
service person.

Sample size has been taken by judgement sampling. Judgement

sampling is a unit from the population is based on pre-judgement.
The research required the survey of different people living in
Dombivli city. So research concentrates on the people in Dombivli
city. The selected of unit for this research has been judged by
researcher.

3.7 Data Collection:

The collection of data consists of both primary and secondary data.
The primary data was collected by floated, a structured questionnaire
for the people. Before finalizing the subjected questionnaire, the
questionnaire was subjected to pilot testing by removing the
difficulties. The final structured questionnaire which is given in the
annexure. In addition, the discussion opinion and interaction which
the people could provide better understanding of their level of
awareness.

39
 Chapter 4
Data Analysis

1) Total Number of Males and Females:

There are 100 persons are taken has representative of total population. In
sample, there are 48 males and 52 females.

Particular Total no. of males and females

Male 48
Female 52
Others 00
Total: 100

40
 Q.1 Have you ever purchased the LIC's policy?
The response received from male and female groups are as follows: Table

No. 1: Purchased the LIC’s policy

Particular Male Female Totals
Yes 40 24 64
No 16 20 36

The Graphical Representation of the above table as follows:

Figure No. 1 Purchased the LIC’s policy

From the above, it was observed that 64% male had purchased the
LIC’s policy and 36% female has not purchased the LIC’s policy.

41
 Q.2 If Yes, for whom did you purchased the policy?
The response received from male and female groups are as follows: Table

No. 2: For whom purchased the policy

Particular Male Female Total
Family 23 22 45
Children 04 03 07
Spouse 05 04 09
Self 24 09 33

The Graphical Representation of the above table as follows:

Figure No. 2: For whom purchased the policy

From the above, it was observed that 59.2% people purchased the
policy for his/her FAMILY, 9.2% people purchased the policy for his/her
CHILDREN, 11.8% people purchased the policy for his/her SPOUSE and
43.4% people purchased the policy for HIMSELF/HERSELF.

42
 Q.3 Do you know different types of policies in Life
Insurance Corporation?
The response received from male and female groups are as follows:

Table No. 3: Different types of policies in Life Insurance Corporation

Particulars Males Females Total
Yes 35 33 68
No 04 07 11
Maybe 07 06 13

The Graphical Representation of the above table as follows:

Table No. 2: Different types of policies in Life Insurance Corporation

From the above, it was observed that 73.9% people know about
different types of policies of Life Insurance Company, 12% people don’t
know about different types of policies of Life Insurance Company, and
14.1% people know some of the types of policies of Life Insurance
Company.

43
 Q.4 From where you heard about the LIC?
The response received from male and female groups are as follows: Table

No. 4: Heard about the LIC

Particular Male Female Total
Website 29 12 41
Advertisement 20 14 34
Friend 05 05 10
Advisor 05 02 07

The Graphical Representation of the above table as follows:

Figure No. 2: Heard about the LIC

From the above, it was observed that 7.6% people heard about the
LIC from WEBSITE, 37% people heard about the LIC from
ADVERTISEMENT, 10.9% people heard about the LIC from their
FRIENDS and 44.6% people heard about the LIC from ADVISOR.

44
 Q.5 What kind of insurance policy have you bought?
The response received from male and female groups are as follows: Table

No. 5: Bought insurance policy

Particular Male Female Total
Endowment Plan 04 04 8
Whole Life Insurance 22 16 38
Money Back Plan 22 10 32
Term Assurance Plan 07 07 14

The Graphical Representation of the above table as follows:

Figure No. 5: Bought insurance policy

From the above, it was observed that, 8.7% people purchased the
ENDOWMENT Plan, 41.3% people purchased the WHOLE LIFE
INSURANCE Plan, 34.8% people purchased the MONEY BACK Plan
and 15.2% people purchased the TERM ASSURANCE Plan.

45
 Q.6 How would you like to buy the LIC Life Insurance?
The response received from male and female groups are as follows: Table

No. 6: Purchasing the LIC Life Insurance

Particular Male Female Total
Agent 24 27 51
At Branch 10 19 29
Website 04 00 04
Others 06 02 08

The Graphical Representation of the above table as follows:

Figure No. 6: Purchasing the LIC Life Insurance

From the above, it was observed that 55.4% people wants to purchase
the LIC life insurance from AGENT, 31.5% people wants to purchase the
LIC life insurance from BRANCH, 4.3% people wants to purchase the
LIC life insurance from WEBSITE and 8.7% people wants to purchase
the LIC life insurance from OTHERS.

46
 Q.7 How much premium do you pay?
The response received from male and female groups are as follows: Table

No. 7: Paying the Premium

Particular Male Female Total
Rs. 1,000-Rs. 5,000 31 33 64
Rs. 5,000-Rs. 15,000 08 05 13
Rs. 15,000-Rs. 25,000 06 04 10
Rs. 25,000-Rs. 50,000 01 01 02
Rs. 50,000-Rs. 1,00,000 01 02 03

The Graphical Representation of the above table as follows:

Figure No. 7: Paying the Premium

From the above, it was observed that 69.6% people are paying their
premium in between Rs. 1,000-Rs. 5,000, 14.1% people are paying their
premium in between Rs. 5,000-Rs. 15,000, 10.9% people are paying their
premium in between Rs. 15,000-Rs. 25,000, 2.2% people are paying their
premium in between Rs. 25,000-Rs. 50,000 and 3.3% people are paying
their premium in between Rs. 50,000-Rs. 1,00,000.

47
Q.8 Did you receive any communication about adding
policies to your e-Insurance account?
The response received from male and female groups are as follows:

Table No. 8: Received any communication about adding policies to e-

insurance account
Particular Male Female Total
Yes 32 20 52
No 24 16 40

The Graphical Representation of the above table as follows:

Table No. 8: Received any communication about adding policies to e-

insurance account

From the above, it was observed that 56.5% people received a

communication about adding their policies in E-INSURANCE account
and 43.5% people did not receive a communication about adding their
policies in E-INSURANCE account.

48
 Q.9 Do you know about the riders?
The response received from male and female groups are as follows: Table

No. 9: Knows about Riders

Particular Male Female Total
Yes 22 18 40
No 14 19 33
Maybe 09 10 19

The Graphical Representation of the above table as follows:

Figure No. 9: Knows about Riders

From the above, it was observed that 35.9% people knows about
the RIDERS of the policy, 43.5% people don’t know about the RIDERS
of the policy and 20.7% knows something about RIDERS of the policy.

49
 Q.10 Have you purchased any of these Endowment
Policy?
The response received from male and female groups are as follows: Table

No. 10: Purchased the Endowment Plan

Particular Male Female Total
LIC's New Jeevan Anand 07 06 13
LIC's Jeevan Labh 02 03 05
LIC's New Endowment Plan 01 00 01
LIC's Jeevan Lakshya 03 01 04
Others 15 08 23

The Graphical Representation of the above table as follows:

Figure No. 10: Purchased the Endowment Plan

From the above, it was observed that 28.3% people purchased the
LIC’s New Jeevan Anand Plan, a type of Endowment plan, 10.9% people
purchased the LIC’s New Jeevan Labh Plan, a type of Endowment plan,
2.2% people purchased the LIC’s New Endowment Plan, a type of
Endowment plan, 8.7% people purchased the LIC’s New Jeevan Lakshya
Plan, a type of Endowment plan and 50% people purchased the OTHER
plans of Endowment Plan.

50
 Q.11 Have you purchased any of these Money Back
Policy?
The response received from male and female groups are as follows: Table

No. 11: Purchased the Money Back Plan

Particular Male Female Total
LIC's Jeevan Umang 21 15 36
Retirement Plan 06 05 11
LIC's New Children's Money 07 07 14
Back Plan
LIC's Jeevan Tarun 07 08 13

The Graphical Representation of the above table as follows:

Table No. 11: Purchased the Money Back Plan

From the above, it was observed that 48.6% people purchased the
LIC’s Jeevan Umang Plan, a type of Money Back Plan, 14.9% people
purchased the Retirement Plan, a type of Money Back Plan, 18.9%
people purchased the LIC’s New Children’s Money Back Plan, a type of
Money Back Plan and 17.6% people purchased the LIC’s Jeevan Tarun
Plan, a type of Money Back Plan.

51
 Q.12 Have you purchased any of these Term Assurance
Policy?
The response received from male and female groups are as follows: Table

No. 12: Purchased the Term Assurance Plan

Particular Male Female Total
LIC's Tech Term 20 21 41
LIC's Jeevan Amar 21 20 41

The Graphical Representation of the above table as follows:

Figure No. 12: Purchased the Term Assurance Plan

From the above, it was observed that, 50% people purchased the
LIC’s Tech Term Plan, a type of Money Back Plan and 50% people
purchased the LIC’s Jeevan Amar Plan, a type of Money Back Plan.

52
 Chapter 5
Findings, Suggestions and Conclusions

1. Specific Findings of LIC’s policy:

Q.1: From the above, it was observed that 64% male had purchased
the LIC’s policy and 36% female has not purchased the LIC’s policy.

Q.2: From the above, it was observed that 59.2% people purchased
the policy for his/her FAMILY, 9.2% people purchased the policy for
his/her CHILDREN, 11.8% people purchased the policy for his/her
SPOUSE and 43.4% people purchased the policy for
HIMSELF/HERSELF.

Q.3: From the above, it was observed that 73.9% people know about
different types of policies of Life Insurance Company, 12% people
don’t know about different types of policies of Life Insurance
Company, and 14.1% people know some of the types of policies of
Life Insurance Company.

Q.4: From the above, it was observed that 7.6% people heard about
the LIC from WEBSITE, 37% people heard about the LIC from
ADVERTISEMENT, 10.9% people heard about the LIC from their
FRIENDS and 44.6% people heard about the LIC from ADVISOR.

Q.5: From the above, it was observed that, 8.7% people purchased the
ENDOWMENT Plan, 41.3% people purchased the WHOLE LIFE
INSURANCE Plan, 34.8% people purchased the MONEY BACK
Plan and 15.2% people purchased the TERM ASSURANCE Plan.

53
Q.6: From the above, it was observed that 55.4% people wants to
purchase the LIC life insurance from AGENT, 31.5% people wants
to purchase the LIC life insurance from BRANCH, 4.3% people
wants to purchase the LIC life insurance from WEBSITE and 8.7%
people wants to purchase the LIC life insurance from OTHERS.

Q.7: From the above, it was observed that 69.6% people are paying
their premium in between Rs. 1,000-Rs. 5,000, 14.1% people are
paying their premium in between Rs. 5,000-Rs. 15,000, 10.9%
people are paying their premium in between Rs. 15,000-Rs. 25,000,
2.2% people are paying their premium in between Rs. 25,000-Rs.
50,000 and 3.3% people are paying their premium in between Rs.
50,000-Rs. 1,00,000.

Q.8: From the above, it was observed that 56.5% people received a
communication about adding their policies in E-INSURANCE
account and 43.5% people did not receive a communication about
adding their policies in E-INSURANCE account.

Q.9: From the above, it was observed that 35.9% people knows
about the RIDERS of the policy, 43.5% people don’t know about the
RIDERS of the policy and 20.7% knows something about RIDERS
of the policy.

Q.10: From the above, it was observed that 28.3% people purchased
the LIC’s New Jeevan Anand Plan, a type of Endowment plan,
10.9% people purchased the LIC’s New Jeevan Labh Plan, a type of
Endowment plan, 2.2% people purchased the LIC’s New
Endowment Plan, a type of Endowment plan, 8.7% people purchased
the LIC’s New Jeevan Lakshya Plan, a type of Endowment plan and
50% people purchased the OTHER plans of Endowment Plan.

54
 Q.11: From the above, it was observed that 48.6% people
purchased the LIC’s Jeevan Umang Plan, a type of Money Back
Plan, 14.9% people purchased the Retirement Plan, a type of
Money Back Plan, 18.9% people purchased the LIC’s New
Children’s Money Back Plan, a type of Money Back Plan and
17.6% people purchased the LIC’s Jeevan Tarun Plan, a type of
Money Back Plan.

Q.12: From the above, it was observed that, 50% people purchased
the LIC’s Tech Term Plan, a type of Money Back Plan and 50%
people purchased the LIC’s Jeevan Amar Plan, a type of Money
Back Plan.

2. General Findings of LIC’s Policy:

 Still need to improve the customer service.

 Still LIC need to aware their consumers regarding LIC Policy.

 Still need to improve their online services.

55
3. Suggestions:
Satisfaction is a most important considered factor among the
customers and company to add value towards their product and
service which leads to customer satisfaction. This study results that
every insurer should understand the consumer requirement about the
policies offered by them. Some of the suggestions, for LIC in India
can succeed by covering more clients through advisers and
advertisement. They should create awareness among the illiterate
and rural groups for the growth of business by concentrating on
more promotional activities. They should create economic value for
the customers. So, that lack of trust and privacy among the customer
can be avoided, quick repayment and security measure should be
taken for attracting more policyholders

56
4. Conclusions:
LIC is already a leading company of Insurance in India. The
consumer responses in the project report also indicate that LIC is a
capable insurance company justifying with its consumers in real
manner. It is found in the study most of the consumers are satisfy
with the LIC services. LIC is providing adequate service which
really consumer wants. But there are some areas where LIC need to
improve so that it may meet the customer objectives easily. We
know very well every customer have their own view regarding thing,
LIC services is one of them. In conclusion it is cleared that there is a
low gap between customer expectation and the LIC offered
facilities. But it does not mean that LIC is perfect, at many areas gap
is found and LIC need to improve in that areas. There is also a
limitation of the study because 50 responders are not enough to
decide anything.
It depends fully responder honesty also their response.

57
 Annexure:
Questionnaire of Survey Form:

1. Name:
___________________________

2. Age:
(a) 18-25 years
(b) 25-35 years
(c) 35-45 years
(d) 45-55 years
(e) 55-65 years

3. Gender:
(a) Male
(b) Female
(c) Others

4. Occupation:
_______________________

5. Email ID:
__________________________

6. Have you ever purchased the LIC’s policy?

(a) Yes
(b) No

7. If Yes, for whom did you purchased the policy?

(a) Family
(b) Children
(c) Spouse
(d) Self
58
8. Do you know different types of policy in Life
Insurance Corporation?
(a) Yes
(b) No
(c) Maybe

9. From where you heard about the LIC?

(a) Website
(b) Advertisement
(c) Friend
(d) Advisor

10. What kind of insurance policy have you bought?

(a) Endowment Plan
(b) Whole Life Insurance Plan
(c) Money Back Plan
(d) Term Assurance Plan

11. How would you like to buy LIC Life Insurance?

(a) Agent
(b) At Branch
(c) Website
(d) Others

12. How much premium do you pay?

(a) Rs. 1,000-Rs. 5,000
(b) Rs. 5,000-Rs. 15,000
(c) Rs. 15,000-Rs. 25,000
(d) Rs. 25,000-Rs. 50,000
(e) Rs. 50,000-Rs. 1,00,000

59
13. Did you receive any communication about adding
policies to your e-Insurance account?
(a) Yes
(b) No

14. Do you know about the riders?

(a) Yes
(b) No
(c) Maybe

15. Have you purchased any of these Endowment

Policy?
(a) LIC's New Jeevan Anand
(b) LIC's Jeevan Labh
(c) LIC's New Endowment Plan
(d) LIC's Jeevan Lakshya
(e) Others

16. Have you purchased any of these Money Back

Policy?
(a) LIC's Jeevan Umang
(b) Retirement Plan
(c) LIC's New Children's Money Back Plan
(d) LIC's Jeevan Tarun

17. Have you purchased any of these Term Assurance

Policy?
(a) LIC's Tech Term
(b) LIC's Tech Term

60
 Chapter 6
Bibliography

1. www.policybazaar.com

2. www.licindia.in

3. www.coverfox.com

4. www.policyholder.gov.in

5. www.livemint.com

6. www.turtlemint.com

7. www.irda.org

8. www.insure.com

9. www.knowledgedigest.com https://en.wikipedia.org/wiki/Online_banking

61