RESEARCH REPORT

On
“CUSTOMER SATISFACTION TOWARDS LIC”
IN KIRTI NAGAR DELHI

Submitted in partial fulfilment of the requirements

for the award of the degree of
Bachelor in Business Administration
Submitted To: Submitted by:
Dr. Preeti Vats NITIN KUMAR
(Assistant Professor) BBA 3rd Semester
Roll No.: 896701721
Batch (2021-2024)

Kamal Institute of Higher Education and Advance Technology

K-1 Extension, Mohan Garden, New Delhi – 110059
(Affiliated to GGSIPU, Delhi

1
 CERTIFICATE

This is to certify that Project title “CONSUMER SATISFACTION

TOWARDS LIC” is the original work of NITIN KUMAR (896701721)
student of BBA 3rd Semester and has duly completed her project under
my guidance and supervision up to my satisfactory level.

This work has been done in partial fulfilment of the requirement for the
award of the degree of Bachelor of Commerce from Kamal Institute of
Higher Education and Advance Technology, GGSIPU and has not been
submitted anywhere in any other university for the award of any degree.

Dr. Preeti Vats

Assistant Professor
KIHEAT

2
 DECLARATION

This is to certify that I have completed the research report on

titled “Consumer Perception towards LIC” under the guidance
of “Dr. Preeti Vats” in partial fulfilment of the requirement for
the award of degree of bachelor in commerce (hons.) at Kamal
Institute of Higher Education and Advance Technology, Delhi.
This is an original piece of work and I have not submitted it
earlier elsewhere.

Place: New Delhi NITIN KUMAR

Date 896701721

Dr. Preeti Vats

(Assistant Professor)

Dr. Anudeep Arora

Director of KIHEAT

3
 ACKNOWLEDGEMENT

An independent project is a contradiction in terms. Every project

involves contribution of many people. This project also bears the
imprints of many people and it is a pleasure for me to acknowledge and
thank all of them.
I am deeply indebted to Dr. Preeti Vats (Assistant Professor) who
acted as a mentor and guide, providing knowledge and giving me
his/her valuable time out of his/her busy schedule, at every step
throughout the project. It is only because of his/her this project came
into being. I also thank Director of Kamal Institute of Higher Education
and Advance Technology, for providing an opportunity of doing this
project under his leadership.
I also take the opportunity to express my sincere gratitude to each and
every person, who directly or indirectly helped me throughout the
project and without anyone of them this project would not have been
possible.
The immense learning from this project would be indelible forever.

Nitin Kumar Dr. Preeti Vats

896701721 (Internal Guide)

4
 EXECUTIVE SUMMARY

So meon e has greatly said that p ractical kn owled ge is far

b etter th an classroom teaching. During this project I fully realized
this and come to know about the present real world of Insurance sector.
It includes all the activities involved in providing insurance products to final
customers. I am pleased to know about the consumers’ wants and competitors’
activities in the real world of insurance.

The subject of my study is to analyse the present insurance sector and products
offered by LIC by applying various tools like cold calling and through direct
interaction with customer’s. I have also done research on the growth of private
life insurance companies in the last five years.

The report contains first of all brief introduction about the company. Then it
contains the current status of private insurance companies and foreign insurance
companies in India.

I also put forward recommendations of the consumers and conclusions that will
help LIC to provide consumer satisfactory services in the insurance sector.

5
INDEX
1 Chapter -1 Introduction 7
1.1 Life Insurance In India 8-9
1.2 Objectives of the study 10
1.3 Industry Profile 11-14
1.4 Company Profile 15-24
1.5 Mission & Vision 25

2 Chapter -2 Literature Review 26

2.1 Literature Review 27-28

3 Chapter - 3 Research Methodology 29

3.1 Statement of the Problem 30
3.2 Scope of the study 30
3.3 Limitations of the study 31
3.4 Types of Research & Research Design 32
3.5 SWOT Analysis 33
3.6 Subject Matter 34-40

4 Chapter – 4 Data analysis 41

4.1 Data Analysis 42-45

5 Chapter -5 Findings & Conclusion 46

5.1 Recommendations 47-52
5.2 Findings 53-55
5.3 Service Quality 56
5.4 Conclusion 57

6 Bibliography 58
7 Questionnaire 59-62

6
CHAPTER 1-
INTRODUCT
ION

7
INTRODUCTION
LIFE INSURANCE IN INDIA

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 civilization’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:
1. That of dying prematurely leaving a dependent family to fend for itself
2. That of living till old age without visible means of support.

Customer satisfied with LIC service because the LIC totally concentrate
customer relations and it makes customers attract towards the LIC

LIC moves towards better customer relations

Plans to start a new portal for its policyholders

8
Our Regional Bureau / Hyderabad September 07, 2005
Life Insurance Corporation of India (LIC) is embarking on a number of
customer relationship management initiatives to retain its foothold in the market,
in the wake of private players inching their way up in the life insurance sector.
The Insurance behemoth is planning to tie-up with a number of banks to enable
a payment gateway wherein the policyholders can make their premium
payments via credit cards. LIC is planning to start a new portal for its
policyholders where a customer can log in, get detail on his/her policies, change
the resident address when he/she shifts to a new place and even taken a printout
of the income tax certificate. The portal is likely to be ready in a month’s time.
Besides, it has already started work on allotment of customer folio number to
know each customer's holding. “The allotment of customer folio number for all
our holders will still take a year’s time in this zone,” H Nanda, regional manager,
information technology, LIC (south-central zone), said. “The electronic
clearance system that we have launched at Hyderabad, Bangalore, Vijayawada
and Visakhapatnam, has been doing very well. Here the customer’s premium is
automatically debited from his account at the time of payment,” he added.
Shortly, the zone will also see the launch of this system in Mysore, Mangalore
and Hubli. “This month, we will also be setting up five satellite branches in the
zone, with two being in Hyderabad and three in Bangalore,” A K Sahoo,
regional manager (marketing), LIC (south-central zone), said at a press
conference organised on the occasion of the beginning of the golden jubilee year
for LIC. Regarding the recently launched Bima Gold policy, a money-back
policy with premium payment options, the corporation plans to sell 15 lakh
policies this year in the southcentral zone with the national figure being one
crore. LIC also plans to launch three-four products this year with one of these
being unit-linked insurance plan in October. As on August 31, 2005, the zone
has issued 12,47,795 policies under new business.

9
Objectives: -
● To identify the insurance needs of the Indian population with
respect to their emotional, physical and financial conditions.
● To find out the Comparative study of various insurance players
in the market.
● To study the varied reasons of availing life insurance plans.
● To clearly understand the rationale behind the investments in
policies of LIC and private sector insurance companies.
● To test the awareness of customers on various aspects of life
insurance policies offered by LIC and other private sector
insurance companies and find whether there is any relation
between them.

10
INDUSTRY PROFILE

About the organisation

Life Insurance in its modern form came to India from England in the year 1818.
Oriental Life Insurance Company stated 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 changed 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 to 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 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 to176
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

11
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, 16non-Indiancompanies and 75 provident were
operating in India at the time of 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 19st of
June 1956, and the Life Insurance Corporation of India was created on 1st
September, 1956, with the objective of spreading life insurance much more
widely and in particular to the rural areas with a view to reach all insurable
persons in the country, providing them adequate financial cover at a reasonable
cost. LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart
from its corporate office in the year 1956. Since life insurance contracts are long
term contracts and during the currency of the policy it requires a variety of
services need was felt in the later years to expand the operations and place a
branch office at each district headquarter, re-organization of LIC took place and
large numbers of new branch offices were opened. As a result of re-organization
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 cross2000.00 crore mark of new business. But with re-
organization happening in the early eighties, by 1985-86LIC had already crossed
7000.00 crore Sum Assured on new policies. Today LIC functions with 2048
fully computerized branch offices,100divisional offices, 7 zonal offices and the
corporate office. LIC’s Wide Area Network covers 100 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-LIC 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 it SATELLITE
SAMPARK offices. The satellite offices are smaller, leaner and closer to the

12
customer. The digitalized records of the satellite offices will facilitate anywhere
servicing and many other conveniences in the future. LIC continues to be the
dominant life insurer even in the liberalized scenario of Indian insurance and is
moving fast on a new growth trajectory surpassing its own past records. LIC has
issued over one crore policies during the current year. It has crossed the
milestone of issuing 1,01,32,955 new policies by 15th Oct, 2005, posting a
healthy growth rate of 16.67% over the corresponding period of the previous
year. From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life insurance business.
The same motives which inspired our forefathers to bring insurance into
existence in this country inspire us at LIC to take this message of protection to
light the lamps of security in as many homes as possible and to help the people
in providing security to their families. Some of the important milestones in the
life insurance business in India are:1818: Oriental Life Insurance Company, the
first life insurance company on Indian soil started functioning.1870: Bombay
Mutual Life Assurance Society, the first Indian life insurance company started
its business.1912: The Indian Life Assurance Companies Act enacted as the first
statute to regulate the life insurance business.1928: The Indian Insurance
Companies Act enacted to enable the government to collect statistical
information about both life and non-life insurancebusinesses.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
nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5Crore from the Government of India. The General
insurance business in India, on the other hand, can trace its root to the Triton Insurance
Company Ltd., the first general insurance company established in the year 1850 in Calcutta
by the British.

Life insurance Corporation of India (LIC)

The Life insurance Corporation was established about 44 years ago with a view
to provide an insurance cover against various risks in life. A monolith then, the
corporation, enjoyed a monopoly status and become synonymous with life
insurance. Its main asset is its staff strength of 1.24 lakhs employed and 2,048
branches and over six-lakhs agency force. LIC has hundred divisional offices
and has established extensive training facility at all levels. At the apex, is the
Management Development Institute, seven zonal Training Centre and 35 sales
13
Training canters. At the industry level, along with the Government and the GIC,
it has helped establish the National Insurance Academy. It presently transacts
individual Life Insurance business, group Insurance business, social security
schemes and Pensions, grants housing loans through its subsidiary. And the
markets savings and Investment products through its mutual fund. It pays off
about Rs6,000 crores annually to5.6 million policyholders.

LIC OPERATES ALL OVER INDIA

Company profile
14
Type: Public limited company or Government-owned corporation ((Founded: September 1,
1956Headquarters: Headquarters in Mumbai, India (Various other locations in India and
abroad Key people: T. S. Vijayan (Chairman), D. K. Mehta and Thomas Mathew (Managing
Directors) Industry: Life insurance Products: Insurance and Pension Plans Employees: Over
10,00,000Parent: NIL Subsidiaries: LIC Housing Finance Limited, etc.
Website: http://www.licindia.com

Products of LIC

LIC – Jeevan Aunrag

Benefits

LIC’s Jeevan ANURAG is a with profits plan specifically designed to take care of the
educational needs of children. The plan can be taken by a parent on his or her own life.
Benefits under the plan are payable at prespecified durations irrespective of whether the Life
Assured survives to the end of the policy term or dies during the term of the policy. In addition,
this plan also provides for an immediate payment of Basic Sum Assured amount on death of
the Life Assured during the term of the policy.

Assured benefits

Payment of 20% of the Basic Sum Assured at the start of every year during last 3 policy years
before maturity. At maturity, 40% of the Basic Sum Assured along with reversionary bonuses
declared from time to time on full Sum Assured for the full term and the Terminal bonus, if
any shall be payable. For example, if term of the policy is20 years, 20% of the Sum assured
will be payable at the end of the 17th, 18th, 19th year and 40% of the Sum Assured along with
the reversionary bonuses and the terminal bonus, if any, at the end of the 20th year.

15
Death Benefits

Payment of an amount equal to Sum Assured under the basic plan immediately on the death
of the life assured.

LIC - Jeewan Kisore

Product summary:
This is an Endowment Assurance Plan available for children of less than 12 years of age. The
policy may be purchased by any of the parent/grandparent.

Commencement of risk cover:

The risk commences either after 2 years from the date of commencement of policy or from
the policy anniversary immediately following the completion of 7 years of age of child,
whichever is later.

Premiums:

Premiums are payable yearly, half-yearly, quarterly or monthly throughout the term of the
policy or till earlier death of child.

Bonuses:

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 bonuses. Simple Reversionary Bonuses
are declared per thousand Sum Assured annually at the end of each financial year. Once
declared, they form part of the guaranteed benefits of the plan. A Final (Additional) Bonus
may also be payable provided policy has run for certain minimum period.

LIC – Childs Career Plan

Introduction:

This plan is specially designed to meet the increasing educational and other needs of growing
children. It provides the risk cover on the life of child not only during the policy term but also

16
during the extended term (i.e.7 years after the expiry of policy term). A number of Survival
benefits are payable on surviving by the life assured to the end of the specified durations.

Options:

You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of Premium
payment and Premium Waiver Benefit.

Payment of Premiums:

You may pay the premiums regularly at yearly, half-yearly, quarterly or through Salary
deductions over the term of policy. Premiums may be paid either for 6 years or up to 5 years
before the policy term.

LIC - Jeevan Chhaya

Product summary:

This is an Endowment Assurance plan that provides financial protection against death
throughout the term of the plan. Besides payment of Sum Assured immediately on death, one-
fourth of Sum Assured is payable at the end of each of last four years of policy term whether
the life assured dies or survives the term of the policy.

Premiums:

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

LIC - Child Future Plan

Introduction:

This plan is specially designed to meet the increasing educational, marriage and other needs
of growing children. It provides the risk cover on the life of child not only during the policy
term but also during the extended term (i.e.7 years after the expiry of policy term). A number
of Survival benefits are payable on surviving by the life assured to the end of the specified
durations.

Options:

17
You may choose Sum Assured (S.A.), Maturity Age, Policy Term, Mode of Premium
payment and Premium Waiver Benefit.

Payment of Premiums:

You may pay the premiums regularly at yearly, half-yearly, quarterly or through Salary
deductions over the term of policy. Premiums may be paid either for 6 years or up to 5 years
before the policy term.

LIC - Jeevan Shree

Product summary:

This is an Endowment Assurance plan offering the choice of many convenient premium-
paying terms. It provides financial protection against death throughout the term of plan with
the payment of maturity amount on survival to the end of the policy term.

Premiums:

Premiums are payable yearly, half-yearly, quarterly, monthly or through Salary deductions,
as opted by you, throughout the premium paying term or till earlier death. Alternatively
premium may be paid in one lump sum.

Guaranteed Additions:

The policy provides for the Guaranteed Additions at the rate of Rs. 50/- per thousand Sum
Assured for each completed year for first five years of the policy.

LIC - The Whole Life Policy

This plan is mainly devised to create an estate for the heirs of the policyholder as the plan
basically provides for payment of sum assured plus bonuses on the death of the policyholder.
However, considering the increased longevity of the Indian population, the Corporation has
amended the above provision, thereby providing for payment of sum assured plus bonuses in
the form of maturity claim on completion of age 80 years or on expiry of term of 40years from
date of commencement of the policy whichever is later. The premiums under the policy are
payable up to age 80 years of the policyholder or for a term of 35 years whichever is later. If
the payment of premium ceases after 3 years, a paid-up policy for such reduced sum assured
will be automatically secured provided the reduced sum assured exclusive of any attached
bonus is not less than Rs.250/-. Such reduced paid-up policy is not entitled to participate in the

18
bonus declared thereafter but the bonuses already declared on the policy will remain attach,
provided the policy is converted in to a paid-up policy after the premiums are paid for 5 years.

LIC – Amulya Jeevan: On Death during the Term of the Policy: Sum Assured

On Maturity: Nil

RESTRICTIVE CONDITIONS

Minimum age at entry: 18 years (completed)

Maximum age at entry: 60 years (nearest birthday)
Maximum age at maturity: 70 years (nearest birthday)
Minimum Policy Term: 5 years
Maximum Policy term: 35 years
Minimum Sum Assured: Rs.25,00,000/-
Maximum Sum Assured: No Upper Limit
(Policies will be issued in multiples of Rs.100,000/- for Sums Assured more than the
minimum Sum Assured)
Mode of premium payment: Yearly, Half-yearly & Single payment Premium

ORGANISATION STRUCTURE OF LIC

Chairman

Managing Director

Executives Directors

Chiefs

Zonal Managers

Regional Managers

Divisional Managers

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 100 Seniors Divisional Managers

Marketing Managers

Sales Managers

Senior Branch Managers (Head of the Branch)

Assistant Branch Managers Sells

Development Officers

Different Agent

PUBLIC RELATION OFFICER

The public relations department in LIC is divided into three major categories.
Namely:
1. Communication Department
2. Crisis Management
3. Publicity Department
Chief Public Relation officer

Communication department

20
Crisis Management Department

Publicity Department

Chairman of LIC

Public Relations

Communication Department

Publicity Department
CRISIS MANAGEMENT DEPATMENT

CHIEF PUBLIC RELATION OFFICER

The Chief Public Relation Officer of LIC is Mr. M. V. Kulkarni. He heads the
PR department. The above three committees are under the PRO. The PRO is
responsible for the overall functioning of the PR department. He has to
monitor the smooth functioning of the three departments.
RESPONSIBILITIES OF CHIEF PUBLIC RELATION OFFICER: -
1. PR represents whole organization.
2. Should know how to behave in a certain situation.
3. He is not a person, he is representative.

21
4. Should know how to create enthusiasm.
5. In crisis he has to give feedback as soon as possible.
OBJECTIVES AND FUNCTIONS OF CHIEF PUBLIC RELATION
OFFICER: -
• The PRO is directly answerable to the Chairman Shri. T.S. Vijayan.
• The PRO looks after all the activities of the three departments all over India.
• Also, he has to keep in close touch with the over-seas PR departments of
LIC.
• All the policies implemented in India are informed to other PROs of the over-
seas branches of LIC.
• The PRO monitors the norms and values of all the branches.
• The new rules and regulations in India are informed to the PROs of the over-
seas branches.
• The PRO also holds regular workshops for the top management employees
to motivate them to lift the spirit of the work culture.
• The PRO also has to provide information about latest policies to the
communication department and ask them to public or air it through various
mediums.
• Since a major share of workload of LIC is in the public sector, the PRO has
to look after social responsibility as well as maintaining the image of the
company.
COMMUNICATION DEPARTMENT
The PRO of this Department is an external PR. He looks after:-
• Arranging press conferences, press releases and is in constant contact with
the media.
• He is also responsible for monitoring the overseas communications.

22
• The Communication Department PRO has to make arrangements for the
guests and their overall honors. The conversations with the guests are directly
done by the Communication Department PRO.
• The PRO from this department should always keep a close eye on the latest
happenings in the market. Any social issue at any area is a news to be worked
out for him.
• He reports directly to the Chief PRO of the company.
• The Press conference usually includes the CEO of the company, the Chief
PRO and the Communication Dept. PRO.
• If the case is of crisis, then only is the Crisis management Dept PRO present
for the Press conference.
• Since LIC is closely related with the Public Sector, the Communication Dept.
PRO has to also be in a close contact with the government officials.
• He also has to motivate the employees in his department for constant
progress in the strategies for communication. In short, the communication
Department PRO ensures that there is no communication gap between the
company and the external concerned bodies (recent press releases of LIC
issued by Communication Department PRO enclosed).
CRISIS MANAGEMENT DEPARTMENT
The PRO in this department is an internal one. From the overall history of
LIC, it is seen that the company has never been into any major crisis. This
itself is one of the best achievements. He is answerable to the Chief Public
Relation Officer. The PRO from crisis management, though is here to handle
crisis, he has been assigned many other internal responsibilities.
• Motivating the lower employees, sales executives and sales and marketing
employees.
• Building up a smooth communication between the Blue Collar and the White
Collar.

23
• Arranging small workshops for all the employees.
• He also has to know the issues going within the other departments so that
these issues are solved before they create crisis. The strategy used by the PR
here for crisis management is: - “Wash the utensil before having food in it.”
Thus all the employees right from the day of joining are kept in close contact
with the Crisis Management Dept. And regular workshops help to restrict
cases like Corruption. With a company so closely associated with the
government, restricting such practices is very difficult task.
PUBLICITY DEPARTMENT
The PRO of the publicity Department is an External PR. This department was
formed due to the fall of sales in the 1999. This fall was due to the emergence
of the foreign insurance companies and their advertising strategies. Initially,
the ads shown by LIC always said “no worry even after death”. All the ads
portrayed death. The other insurance companies came up with the idea that
insurance is for happy life. Thus the sales of LIC went down as people liked
the idea of Life more than Death. Hence a separate publicity department was
formed which worked only for publicity strategies. Initially it was looked up
by the Communication Department. Today the publicity department PRO has
to see to it that all the ads running are creating effect. The PRO is the one who
along with the Marketing department looks after the strategies for publicity.
He is also to carry out various campaigns. The very recent campaign is known
as “Zindagi Express”. The Zindagi Express is a term that has been associated
to the life of LIC. Just as humans celebrate their 50 years of life, even LIC is
celebrating its life and when any person has done a lot in his life, he is capable
of writing an Autobiography. Thus Zindagi Express is an Autobiography by
LIC. They had started this unique campaign of auto biography from Delhi and
will cover the entire nation and end up in Delhi again. During this journey they
explain what all LIC has done for publics and what all it still intends

24
 MISSION/VISION

Mission

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

Vision

“A trans-nationally competitive financial conglomerate of significance to

societies and Pride of India.”
LIC of India is the one and only public sector life insurance Company in India.
Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on
Indian soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life insurance
company started its business.
1912: The Indian Life Assurance Companies Act enacted as the first statute to
regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the government
to collect statistical information about both life and non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance Act with
the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken over by
the central government and nationalised. LIC formed by an Act of Parliament,
viz. LIC Act, 1956, with a capital contribution of Rs. 5Crore 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.

25
CHAPTER 2
-
LITERATURE
REVIEW

26
Gera, R. (2011) - Do a study on Customer satisfaction towards LIC he
achieve customer loyalty to keep them satisfied with business
progress expansion and he find n these research paper the researcher
is mainly focusing on the customer satisfaction but the customer is not
know about the product information.
Ranjit Singh, Moushumi Choudhury (2015) – A study tilted on
perception of customers towards responsiveness of bancassurance
channel. In his study he understand the impact of various
demographic variables on customer responsiveness, the study is
based on primary data collected from customers purchasing life
insurance policies. After his research he find sampling gap.
Masood, H Siddiqui (2010) - A study analysing customer satisfaction
with service quality in life insurance services. Identify the most critical
issue of whether customer focus is reflected in their strategies Area of
operation gap.
Min Han, C. (1990). A study on attitude of Indian consumer towards
insurance services Find this study on insurance companies in the
Indian market to frame marketing strategies based on socio-
demographic and economic variables Poor information is provided by
the insurance companies or consumers faces authentication about
quality of the insurance services.
D Randall Brandt, Kevin l reffett (1989) Focusing on customer
problems to improve service quality Establish the types and ubiquity
of customer problems to assess each one's effectiveness on customer
satisfaction. To resolve the subjectivity and ambiguity of customer
satisfaction.
Mandeep kaur, Dalwinderkaur(2014) Customer satisfaction towards
life insurance Analyze factors that affect customer satisfaction as it
helps companies beat competitions Mainly analysis of seven factors of
customer satisfaction.
A B Sogunro, B Abiola(2014) Measuring customer satisfaction on life
insurance products Measure buyers' compromises in multi award-
winning products and services with purchases Policyholders are not
satisfied with the LIC Woodside et al(1989) customer judgment of
service quality and satisfaction with the service encounter

27
Foundational Research Study on the Positive Link to Overall
Satisfaction with Service Delivery Time gap, research methodology
gap.
Ching-chow yang (2003) The measure of customer satisfaction
highlights the strength of quality products Improvement of product
quality or search for the best quality of products Suggestion gap
Pothas et al (2001) Unconventional way of monitoring customer
satisfaction Identified proposed unconventional way of monitoring
Investigator from the frame of reference Day.
R. L. (1977). Customer satisfaction is an evaluative response of the
products purchase and consumption experience To Analyze the
comparison of what was expected and what is received Expectation
influence customer satisfaction that effect the positive, negative and
non existent .
Taylor, C., & Benger, J. R. (2004) Studied various literatures and
indicated that customer satisfaction response To analyze about the
response pertains to a particular consumption experience Sampling
gap Berezina.
K., Cobanoglu ,C., Miller, B. L., & Kwansa, F. A. (2012) The perception
of the word “satisfaction” Identified customer satisfaction as a
multi dimensional in nature Multiple experiences with the service
provider Anderson.
R. E. (1973) Relationship between customer expectation and products
perceived performance To determine customer satisfaction towards
the relationship between customer expectation Area of operation Gap
Hernández-Lobato.
L., Solis-Radilla, M. M., Moliner-Tena, M. A., & Sánchez-García, J.
(2006). Satisfaction as pleasurable fulfilment Analyse about the
consumption that provide outcomes against the standard of pleasure
Judgment itself about feature of products and service

28
 Chapter 3
Research Methodology

29
Statement Of The Problems
• LIC keeps on being the main life back up plan, even in the changed
Indian protection situation, and is quickly pushing ahead on new
development past its very own reputation.
• In the region held for its rivals, the organization has joined IT-
based administrations in its universal improvement and
manageability diary.
• Part of his organization has fused data innovation based
administrations into its different activities to improve client
administration and comfort

Scope Of The Study

• The protection business has as of late developed significantly.
• An extensive number of new players entered the market and
immediately picked up piece of the overall industry by improving
the market.
• The examination proceeds by assessing and investigating the
outcomes to give an unmistakable picture of patterns in the
protection business.

30
Limitations of Study
Like the examination finished with essential and auxiliary research,
there are a few restrictions to the investigation to note.
1. The primary constraint of the investigation was the time
accessible to finish it, which influenced the preparing and
examination of the information.
2. An adequate number of respondents from all LIC
administrations who couldn't be incorporated.
3. The investigation is restricted agreeable to policyholders with
policyholders and other related issues past the extent of this
examination.
4. Because of time requirements, the specialist secured just the
examination time frame from 2005-2006 to 2009-2010.
5. The example estimate is constrained to 100 individuals as it
were. The example size may not speak to the whole market
effectively.
6. It is hard to realize that all respondents gave exact data. a few

respondents will in general give deceiving data.

31
Type of Research and Research Design
The universe of the investigation incorporates the LIC supporters of
the Thanjavur division. The example, the policyholders were looked
over the testing outline, it is recorded by the three branch directors
and the five operators. The example was gathered into urban and
country bunches. In each gathering, an example of 150, 7 endorsers
were drawn nearer at the accommodation of the scientist and
supporters. The essential information were gathered from 100
endorsers. The scientist utilized the accommodation of Descriptive
Research Design to contemplate nature of administration as far as
mindfulness, fulfillment and key measurements in the disaster
protection industry. Poll criteria, for example, pay, age, occupation,
dimension of training, and so forth. Respondents were solicited to
rate the dimension from mindfulness, fulfillment, and nature of
administration measurements significant to the PFR protection
item on a 5-point scale. Specifically, these parts of nature of
administration were distinguished through the point by point
exploratory recognizable proof procedure. This incorporates bunch
discourses with 100 disaster protection policyholders (country and
urban) and eight top to bottom meetings, three branch supervisors
and five with LIC operators). Content Analysis Group discourses and
top to bottom meetings were directed.

32
S.W.O.T. ANALYSIS OF LIC
A proper S.W.O.T. analysis of LIC has also been conducted to know better
about the position, growth, and upcoming future and prospective of the
company.
STRENGTHS
• LIC is on 1st rank among the Insurance player.
• Long-term plans of LIC are the main strength.
• After sales services.
• Products cost are very low.
• Customer does not believe on private company.
WEEKNESS
Low interest rate
OPPORTUNITIES
• Good brand promotion.
• 1/2nd % insurance has been covered.
THREATS
• Competitors.
• Entry of Private Insurance banks

33
Subject Matter
Introduction of topic
What is customer satisfaction?
Customer satisfaction refers to how satisfied customers are with the products
or services they receive from a particular agency. The level of satisfaction is
determined not only by the quality and type of customer experience but also
by the customer’s expectations. A customer may be defined as someone who:
• has a direct relationship with, or is directly affected by your agency and
receives or relies on one or more of your agency’s services or
products. Customers in human services are commonly referred to as
service users, consumers or clients
• An organisation with a strong customer service culture places the
customer at the centre of service design, planning and service delivery.
Customer centric organisations will:
• determine the customers’ expectations when they plan• listen to the
customer as they design
• focus on the delivery of customer service activities
• Value customer feedback when they measure performance.

Why is it important?

There are a number of reasons why customer satisfaction is important in

Insurance Sector:
• Meeting the needs of the customer is the underlying rationale for the
existence of community service organizations. Customers have a right
To quality services that deliver outcomes.
• Organizations that strive beyond minimum standards and exceed the

34
 expectations of their customers are likely to be leaders in their sector.
• Customers are recognized as key partners in shaping services
development and assessing quality of service delivery,

The process for measuring customer satisfaction and obtaining feedback on

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

35
36
Consumer Satisfaction in 7 steps in LIC

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

37
example of this is my Web host. They've had some trouble with server
hardware which has caused a fair bit of downtime lately. At every step along
the way I was emailed and told exactly what was going on, why things were
going wrong, and how long it would be before they were working again. They
also apologised repeatedly, which was nice. Now if they server had just gone
down with no explanation, I think I'd have been pretty annoyed and may have
moved my business elsewhere. But because they took time to keep me
informed, it didn't seem so bad, and I at least knew they were doing something
about the problems. That to me is a prime example of customer service.
3. Be Friendly and Approachable
A fellow Site Pointer once told me that you can hear a smile through the
phone. This is very true. It's very important to be friendly, courteous and to
make your clients feel like you're their friend and you're there to help them
out. There will be times when you want to beat your clients over the head
repeatedly with a blunt object - it happens to all of us. It's vital that you keep
a clear head, respond to your clients' wishes as best you can, and at all times
remain polite and courteous.
4. Have a Clearly-Defined Customer Service Policy
This may not be too important when you're just starting out, but a clearly
defined customer service policy is going to save you a lot of time and effort in
the long run. If a customer has a problem, what should they do? If the first
option doesn't work, then what? Should they contact different people for
billing and technical enquiries? If they're not satisfied with any aspect of your
customer service, who should they tell? There's nothing more annoying for a
client than being passed from person to person, or not knowing who to turn to.
Making sure they know exactly what to do at each stage of their enquiry should
be of utmost importance. So make sure your customer service policy is present
on your site -- and anywhere else it may be useful.

38
5. Attention to Detail (also known as 'The Little Niceties')
Have you ever received a Happy Birthday email or card from a company you
were a client of? Have you ever had a personalised sign-up confirmation email
for a service that you could tell was typed from scratch? These little niceties
can be time consuming and aren't always cost effective, but remember to do
them. Even if it's as small as sending a Happy Holidays email to all your
customers, it's something. It shows you care; it shows there are real people on
the other end of that screen or telephone; and most importantly, it makes the
customer feel welcomed, wanted and valued.
6. Anticipate Your Client's Needs & Go Out Of Your Way to
Help Them Out
Sometimes this is easier said than done! However, achieving this supreme
level of understanding with your clients will do wonders for your working
relationship. Take this as an example: you're working on the front-end for your
client's exciting new ecommerce endeavour. You have all the images,
originals and files backed up on your desktop computer and the site is going
really well. During a meeting with your client he/she happens to mention a
hard-copy brochure their internal marketing people are developing. As if by
magic, a couple of weeks later a CD-ROM arrives on their doorstep complete
with high resolution versions of all the images you've used on the site. A note
accompanies it which reads:
"Hi, you mentioned a hard-copy brochure you were working on and I wanted
to provide you with large-scale copies of the graphics I've used on the site.
Hopefully you'll be able to make use of some in your brochure."
Your client is heartily impressed, and remarks to his colleagues and friends
how very helpful and considerate his Web designers are. Meanwhile, in your
office, you lay back in your chair drinking your 7th cup of coffee that morning,

39
safe in the knowledge this happy customer will send several referrals your
way.
7. Honour Your Promises
It's possible this is the most important point in this article. The simple
message: when you promise something, deliver. The most common example
here is project delivery dates. Clients don't like to be disappointed. Sometimes,
something may not get done, or you might miss a deadline through no fault of
your own. Projects can be late, technology can fail and sub-contractors don't
always deliver on time. In this case a quick apology and assurance it'll be ready
ASAP wouldn't go amiss.

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

40
Chapter – 4
Data Analysis
And
Interpretation

41
DATA ANALYSIS AND INTERPRETATION

CONSUMER PRECEPTION TOWARDS SERVICES

LIC HDFC ICIC OTHERS
50% 30% 15% 5%

Sales

LIC
HDFC
ICIC
OTHERS

(LIC have more customers rather than others)

Customer Relationship departments

LIC HDFC ICIC OTHERS
40% 35% 15% 10%

42
Public relations
LIC HDFC ICIC OTHERS
30% 15% 5%

Sales

LIC HDFC ICIC OTHERS

In LIC mostly concentrate on public relation

LIC policies and better plans

LIC HDFC ICIC OTHERS
50% 35% 10% 5%

43
 Sales

LIC HDFC ICIC OTHERS

LIC is one of first insurance company which provided more services

Project Analysis
The Positive side of LIC as well as Negative side of LIC. I encourage other
readers to correct me if I am wrong and also add light to any point that I may have
missed. First let’s talk about the Positive side of LIC.

1. LIC is owned by the government and therefore it is the only company besides
the PPF that has the sovereign guarantee of the govt. of India. It is a different
story that today LIC has become so powerful that the govt. leans on LIC every
time that the Stock Market crashes. Imagine having an Asset base of over Rs6
Lac Crore. That’s a 14digit number! No company in India can boast of such
figures. Mind boggling.
2. LIC is the only Life Insurance Company making profits. Most of the Private
Insurers including the self-proclaimed market leaders like ICICI and Bajaj
Allianz are booking heavy losses. Check IRDA website in the Annual Report
column. The point is that if an insurance company makes losses year over year,
then how will they manage to pay the Claim amount? Afterall no Insurance
Company is here to do charity business.
44
3. When it comes to paying claims, again LIC is Number One with the claims
settlement ratio of more than 99%. Private Insurers cannot match LIC’s ability
on claims settlement. Again, please visit IrDA’s website to see the claims
settlement performance of various companies.
4. LIC has the world’s largest sales force, yes over 10 lac agents and now
universities in western countries are trying to study how a company managed to
appoint such a large sales force. A sales force of over 1 million! Truly a
remarkable achievement.5. Many people argue that LIC has not been able to
penetrate the market as it has insured only 15% of the population. My point is, in
a poor country like India where there are so many people living below the poverty
line, so many people who die of starvation, so many people who don’t have access
to basic medication, so many people who don’t have basic necessities of life like
food, shelter, education and clothing. Will such a person first feed his children or
buy Insurance? Let’s not forget that a majority of the Indian population is poor
and a substantial percentage is living below the poverty line. At a personal level
i feel that LIC has done a satisfactory job of insuring people.

45
Chapter -5
Findings &
Conclusions

46
Recommendations
TO CONVERT ALL NEGATIVE POINT IN POSITIVE TO
SIT IN FIRST LEVEL IN INSURANCE AREAS FOREVER
AND IMPROVE Q.D.C

# NOW THE NEGATIVE POINT OF LIC#

1. The administrative staff in LIC is in deep slumber. Try writing a compliant
to them and they won’t even brother to reply back. If you ask the branch
manager for the complaint book, he probably won’t have it in place if an

47
 Agent complaint against my install any staff, then the agent is blacklisted
and next time on what his work is not done.
2. In order to show a better performance and achieve branch targets, agents
are motivated by the manager to split the policies. This is not only add to
inconvenience of LIC policy holder but it also increased the not only adds
to inconvenience of LIC policy holder but it also increased the expenses of
LIC. Competitions of agent are held with big prizes being offered on the
number of policies sold and not on the number of lives insured. Therefore
many agents are tempted to sleep the police seat in order to get better
prizes. However if an agent wants the forms of sales illustrate most of the
time it is out of stock. But surprisingly just a wake me for any scheme is
about to close, the office is flooded with forms and sales literature. This is
very disturbing.
3. As I earlier said, LIC is lacking in effective leadership in recent times.
Managers have indignations like marketing or manager sales manager do
not have the capability to motivate an audience at a meeting. Yes this is
true even in a city like Mumbai. Even the senior level manager cannot
make effective presentations or design A sale strategy. Their only at the
agent meeting is ‘Friends being more policies!’. If you are ask them how
to bring more policies they won’t know. It’s pity!
4. Through her eyes she has more than 2000 branches, they are not
systematically located in Mumbai front areas, LIC has more than 20
branches with a radius of 1.5 Kms. What’s the use? In that in the shrubs
where most of the people we said there are no branches at all. LIC has no
branches in Bandra east, Vilie east and West central E valley parala E
Andheri W jogeshwari W mahim matunga etc and I see gives a tout to
systematic relations of its officer it immediately killed help and the
policyholder even through LSE claims to have taken several internships in
the IT sector policy holder still face problem in the revival of their policies

48
payment of premium in several branches changes of mode changes of
address etc the after after cell policy service department needs to remap
policyholders feels that LIC agents are humble while sealing a policy and
thereafter they failed to provide any service to the client the trust is that
arise it’s so weak in policy service department that even a good agent fine
is difficult to get the work done from the administrative staff to sum up I
would say that LIC will never cheat a policyholder in payment of claim but
at the same time everyone will agree that and this is not responsive to the
needs of the customer if you have purchased an energy policy then don’t
forget to pay the premium on time and when your policy get matched your
LIC will honestly pay your maturity amount on time the employee or
sometimes rude in their behaviour with the policyholders if a claim check
is handed over by a courteous and smiling employ of LIC it will enhance
the image of LIC in the mind of policyholder today LIC is not just
insurance company LIC jump movement and I see the religion imagine
10,00,000 agent and 1,00,000 employees are win 16 color policy holders
in India you cannot deny that Alicia has become the way of life in India
daily you can hear someone or other talking of alias in local trains at fish
markets at restaurants or new channels in your own offices it is C as I
earlier said that acid LIC has started lacking in effective leadership if a
company like LIC standard response in relevant awards like Zee Cine
awards with it had done 2years ago, then it will send the wrong message in
the minds of policyholders. Imagine India’s most famous institution in
sponsoring assigned award function starting with it was done to increase
the brand means of LIC dead sounded like a big joke it is the time that the
top officials of LIC come out of their air conditions means and travel by
public transport or sometimes in order to feel pulse of the common man.

49
 Why LIC is trusted brand of India?
1.As a Govt of India owned Company, LIC is 51 + years old in the field of life
insurance and money management. LIC's Life Fund size as on day is more than
Rs 5 Lakh Thousand Crores!
2. Any LIC policyholder or the nominee will vouch for the best claims settlement
from LIC. Perhaps, this is the only institution where you as a policyholder are
virtually chased till such time your claim cheques is handed over to you!
3. LIC has won `NDTV Profit Leadership Award 2007 under Life Insurance
Category', `Outlook Money Award 2007 as the best Life Insurer', `CNBC Avaaz
Consumer Award 2007 as the best Life Insurance Company', `Golden Peacock
Award for excellence in Corporate Governence2007',`Web 18 Genius of the Web
Award 2007 and many more'.
4.LIC adjudged No.1 Trusted Service Brand for the 4th successive year by ET
Brand Equity Survey.
5. LIC has been adjudged Super brand India for 2004-06 and Reader's Digest
`Trusted Brand' Asia 2007.
6. This is the only corporation that is catering to more than 190million satisfied
policyholders in India and abroad.
7. This is one of the very few institutions that pays ex-gratifiers on pending
maturity claims.
8. More than 2050 LIC branches all over India are connected together to serve
you. You can pay your premium anywhere in the country.
9. During its long existence, LIC has kept on updating its portfolio by bringing in
new plans depending on public requirement. More than 50 of them are most
popular and can be customized to meet any of your requirements. LIC ULIPs
have become extremely popular due to the returns they offer. Money Plus latest
LIC Unit Linked Plan is a case in point.
10. All LIC Plans come with Sovereign Guarantee i.e., Govt of India Guarantee
regarding repayment. In fact, as of now, only LIC plans enjoy this Govt
50
Guarantee. Beneficiary for this Sovereign Guarantee is you and you alone as the
policyholder/ would-be policyholder.
11. All LIC plans are characterized by low premium, high life insurance coverage
and a vast package of benefits offered by them. Add to this package, section80C
benefit and section 10(10D) benefit on the maturity proceeds, you will find
investment on LIC plans one of the most coveted investment options available to
you.
12. Premium paid under Key-Man Insurance plan is a recognized business
expense under section 37(I) of the Income-Tax Act. For companies making
profits, this is a very good incentive indeed.
13. Through Employer-Employee Insurance scheme, you can recognize the worth
of your most valuable employees whose absence you can ill afford to lose.
14. Entire contribution to LIC Group Gratuity Scheme is a recognized business
expense in the hands of the employer. In addition, through this scheme, the
employer can transfer his gratuity liability to the corporation and fund the same
under cash accumulation scheme. The most popular among all the companies.
15. LIC is declaring quite an impressive bonus (profits) on all its with-profits
policies every year. Extra attraction under LIC Bonus is (a) it is calculated every
year on the insured amount and not on the premium paid and (b) entire bonus
received along with insured amount either by you on maturity of your policy(ies)
or by your nominee in your absence during the currency of your policy(ies) is
free from income-tax under section 10(10D) of the Income-tax Act.
16. On most of the LIC plans, you can borrow to take care of your immediate
monetary requirements. None of the policy benefits get affected as a result of
borrowable. In fact, policy loans offer one of the most attractive investment
opportunities.
17. You can pay your premium 3 years in advance at 5% discount. Chief
attractions of this advance payment of premium are (a) there is no possibility of
your overlooking your premium payment and getting your policy(ies)lapsed

51
wherever you are in the world and (b) you will be earning 5%tax-freeinterest on
the unutilized portion of the amount left with LIC after apportioning the regular
instillment.
18. Most of the LIC plans come with Riders to take care of Total and Permanent
Disablement due to Accident and some of the most dread diseases that may result
in loss of income.
19. LIC pension plans that guarantee your life pension are extremely popular.
You can park your hard-earned money safely with the corporation and enjoy
pension as long as you are alive. Due to these reasons and lot more, LIC should
be your obvious choice for all your life insurance requirements.

LIC is India’s most trusted brand, ENSURING LIVES AND ENSURING

SMILES from more than 50 Years. SUPER BRAND & MOST TRUSTED
SERVICE BRAND OF INDIA. BEST IT USER IN INDIA (NASSCOM – 2003).
Largest Institutional Investor in India and Second largest in Asia among
insurers.(Source: Asian Investor)LIC - An Institution Builder promoting many
financial and insurance institutes like NSE, NCDEX, LIC Mutual Fund, Stock
Holding Corporation of India, National Insurance Academy, Insurance Institute
of India etc. LIC is the largest life insurer of India Asset value as on 31.3.2004:
3,673,598.4mn (INR). Offers over 45 plans to cover your life at various stages
Over 160 million customers and 1.1 million agents. It has underwritten more than
160million policies.2,048 branch offices (all computerized) of which 2019 are
networked” From all above we can say our money is safe and secure with assured
returns.”

52
 Findings
Product offered to customer
• 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
Profit – Plan No. - 48
Jeevan Mitra – Plan No. -
New Janarakshha policy – Plan No. - 91
Jeevan Anand – Plan No. - 149
Jeevan Mitra Triple Cover – Plan No. – 133
• Group Insurance Policy
Janashree Bima Yojana Group
Insurance scheme in lieu of EDI
Group (Term) Insurance Scheme
Group Savings Linked Insurance Scheme
Group Superannuation Scheme Group
Mortgage Recommendation Insurance scheme
• Joint Life Policy
53
Jeevan Saathi – Plan No. - 89
• Money Back Policy
Money with the profit – Plan No. - 75
New Money Back – Plan No. – 93
Jeevan Surbhi 15 years – Plan No. - 106
Jeevan Surbhi 20 years – Plan No. - 107
Jeevan Survey 25 years – Plan No. - 108
Jeevan Bharti – Plan No. – 160
Jeevan Samriddhi – Plan No. - 154,155,156,157
Bima Bachat – Plan No. – 175
• Pension Plan or Annuity
New Jeevan Dhara – Plan No. - 148
New Jeevan Suraksha – Plan No. - 147
Jeevan Akshay II – Plan No. - 163
Jeevan Nidhi – Plan No. - 169
Jeevan Akshay V – Plan No. - 183
• Special Plan
Term Insurance– Plan No. - 43
Mortgage Remediation plan 52
Jeevan Aadhaar – Plan No. - 140
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

54
Money Plus Plan No. - 180
• Term Policy
Convertible Insurance - Plan No. - 58
New Bima Kiran
Term Assurance
Anmol Jeevan, I Plan No. -164
Amulya Jeevan - Plan No. -177

55
Service Quality
Your Policy Bond and Its Safety
Your Policy Number
Policy Conditions
Alterations in Policy
If Your Policy Is Lost
Your Contact Address – Keep Us Posted Without Fail
Admission Of Age
Nomination
Assignment
When To Pay the Premiums
Grace Period for Premium Payment
How And Where to Pay the Premiums
Policy Status – Where Available
Revival Of Lapsed Policies
Availing Loans on Policies
Surrender Value
Maturity, Survival Benefits, Disability and Death Claims
Policies Under Salary Savings Scheme
Helpline

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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 behaviour 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 all policies and plan totally satisfied the customers.

57
BIBLIOGRAPHY
Magazine
• Yogkshem – LIC
• Outlook express
• Business today
• Money outlook

Newspaper
• Business standard
• Times of India
• Economic times
• Hindustan times

BOOKS
• Agarwala, A.N. Insurance in India – A Study of insurance aspect of
social security in india, Allahabad law journal press, Allahabad, 1962.
• Bhir B.S. and Limaye M,D.” Insurance principles and practice.
Lakshmi book depot, Bombay, first edition 1957

. • Philip kotler (2006), marketing management, twelfth edition, p.164.

58
ANNEXURE: -
Customer name: - Mr./Mrs./Miss………………………

Address: ……………………………………………………

……………………………………………………

Contact no: - …………………………………………………….

Age: ……………………………………………………

Questionnaire: -
1. What factors do you consider while selecting a life insurance
company?
a) premium outflow
b) company reputation
c) service quality
d) product quality
e) return on investment
2. What factors influenced to select a life insurance company?
a) personal interest
b) friends
c) family
d) agents
e) advertisements
f) others
3. What is the value of your life insurance?
a) >10,000

59
b)10,000 to 25,000
c) 25,000 to 50,000
d) 50,000 to 1,00,000
e) >1,00,000
4. Do you prefer to invest your money in insurance company or in a
bank?
a) insurance company
b) bank
5. Do you satisfied with your current life insurance company?
a) yes
b) no
If yes why? _____________________________
If no why? ________________________________
6. How do you rate the service offered by your life insurance
company?
a) excellent
b) very good
c) good
d) average
e) poor
7. Would you like to communicate the service of word by your life
insurance company to others?
a) yes
b) No
8. How many Life Insurance companies do you know?
60
a) <5
b) 5 to 7
c) 8 to 10
d) > 10
9. How do you rate the following life insurance companies?
a) LIC
b) HDFC
c) ING VYSYA
d) MEET LIFE INDIA INSURANCE
e) BIRLA SUNLIFE
f) ICICI Prudential
g) Tata AIG
h) others
10. How would you like to continue with this same life insurance
company?
a) yes
b) no
11. Any suggestions for improving the services offered by life
insurance companies?
12. Do you invest in insurance plans of LIC because of tax benefits?
a) Yes
b) No
13. what are the reasons for investing in insurance plans of LIC?
a) Returns

61
b) Schemes are good
c) Recommended by family & friends
d) Needs to save tax
e) Offers multiple benefits like investment + insurance + tax savings
14. What do you feel after investing in insurance plans of LIC?
a) Good
b) Averagely satisfied with the investment done
c) Cheated
d) bad
15. Do you think the recommendation for LIC is authentic and the
agent /marketing executive of LIC are giving correct information
related to the product and charges?
a) Yes
b) No

62