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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.

Nationalization
In 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by owner's of private insurance companies. In the ensuing investigations, one of India's wealthiest businessmen, Ram Kishan Dalmia , owner of the Times of India newspaper, was sent to prison for two months. Eventually, the Parliament of India passed the Life Insurance of India Act on1956-06-19, and the Life Insurance Corporation of India was created on1956-09-01, by consolidating the life insurance business of 245 private life insurers and other entities offering life insurance services. Nationalization of the life insurance business in India was a result of the Industrial Policy Resolution of 1956, which had created a policy frame work for extending state control over at least seventeen sectors of the economy, including the life insurance. The company began operations with 5 zonal offices, 33 divisional offices and 212branch offices. Current status Over its existence of around 50 years, Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses, and contributed around7 % of India's GDP in 2006.The Corporation, which started its business with around 300offices, 5.6 million policies and a corpus of INR 459 million, has grown to 2,048 offices servicing around 180 million policies and a corpus of over INR 3.4 trillion. The organization now comprises 2048 branches, 100 divisional offices and 8 zonal offices, and employs over 1 million agents. It also operates in 12 other countries, primarily to cater to the needs of Non Resident Indians. With the change in the India's economic philosophy from the early1990s, and the subsequent relaxation of state control over several sectors of the economy, the monopolistic position of the Life Insurance Corporation of India was diluted, and it has had to compete with a number of other corporate entities, Indian as well as transnational Life Insurance brands. In the financial year 2006-07 Life Insurance Corporation of India's number of policy holders are said to have crossed a whopping 200million (fourth in terms of population of the countries of the world)

Subsidiaries
LIC owns the following subsidiaries: Life Insurance Corporation of India International : This is a joint venture offshore company promoted by LIC which commenced operations in July, 1989 with the objectives of offering US$ denomimated policies to cater to the insurance needs of NRIs and providing insurance services to holders of LIC policies currently residing in the Gulf. LIC International operates in all GCC countries. LIC Nepal: A joint venture company formed in 2001 with the Vishal Group of Industries, Nepal. LIC Lanka: A joint venture company formed in 2003 with the Bartleet Group of Companies, Sri Lanka.

Objective of the Project


When LIC was formed in 1956 through the amalgamation of 225 private companies, its business objectives complemented its social objectives. The main objective is to spread life insurance to every nook and corner of the country especially rural areas, to socially and economically backward classes and provide them reasonably-priced financial cover against death. Other objectives include encouraging people to save for the future by making insurance-linked savings more attractive and secure. The funds created are then utilized and invested for nation building. The insurance business is conducted with the full realizations that LIC is only a trustee of the insured public and priority is given to meet the needs that arise due to change in the social and economic environments. Even today after 50 years, the core value of social commitment has not changed. What have changed in recent times are customers expectations and the environment in which the life insurance sector operates. This is due to globalization which has opened up the insurance sector to private players.

IT for Insurance
IT policy flows from the business and social objectives. IT usage covers all business activities of the organization. This includes finance, investment, product development, actuarial, underwriting, customer relationship management, marketing, policy servicing, human resource development, office servicing, and estate management. Its role is not to automate processes. Rather, it is a strategic tool to simplify procedures and revamp processes. This helps create a very efficient customer service management system. It not only provides anywhere, any time service, it also provides greater accountability, transparency and responsiveness in all business processes. In todays world, IT is a must for any industry to keep pace with the customers changing expectations. This is especially relevant in the service industry. The insurance sector has to ensure that the technology it chooses does not lag behind where customer expectations are concerned. In our case, LIC has more than 16crore policy holders. So it has to induct the best IT products available and use them to cater to the needs of the customers and deliver anywhere any time service on demand and to add value to its new products. The trust and the goodwill of the customer gained in the last 50 years have to be consolidated by making all activities more customer-focused. For instance, LIC has a corporate Web site to provide information on products, services, policy status, grievances and premium calculator. Other facilities include touch-screen information kiosks at central locations to provide 24 x 7 inquiry services to customers.

Impact of the financial crisis on Life Insurance Corporation


LIC is a public sector insurer and a domestic investor. As such, we are not directly affected by the global financial crisis. However, the volatility in Indian financial market due to the uncertainty in global markets may affect returns we get on our investments. But LIC has an indisputable record of prudently planning its investments and getting the maximum returns on the policyholders money. We will continue to do that in any type of scenario. Why has the new business growth slowed? What will be the impact of the lower growth on LICs performance? Will it affect ratios? Total premium growth of LIC has always been quite stable, even when there are periodical ups and downs in new premium income. Last year, we ended the year with around 10% growth in First Premium income despite several odds. However, the growth in total premium income was quite healthy, indicating better conservation ratio. Our overall expense ratio is the least in the industry. Last year, I was only 11.94%, and it was just 5.56%, excluding the commission. The surplus generated was a record high of Rs16,598.65crore, which enabled us to give higher terminal bonus to our with profit policyholders and to increase dividend to the government. Having said that, I agree that there has been a decline in the new premium in the current financial year. One of the reasons was that after withdrawal of our successful old plans, we did not immediately introduce any new ULIP. Since then, we have launched new products and the response has been very positive and encouraging. Also, we had some issues with the union of development officers, which have been more or less sorted out through series of consultations and discussions. In September, the figures have started picking up, and I am sure, we will recapture the lost ground very soon. Private insurers are growing their market share by growing distribution. LIC is close to saturation level in terms of distribution. How will you retain the market share? It is not accurate to say that LIC has reached its saturation point in terms of distribution, as we are expanding our reach and network. Other insurers are perhaps expanding very fast and the effect is reflected in their balance sheets. We do have constraints of capital and any growth has to be supported by internal accruals only. Hence, we follow the policy of steady and profitable growth and distribute 95% of surplus to our with profit policyholders. Such a practice makes our products better. And I am sure, this will, in the long run, determine who becomes winner in the life insurance market in India. How do you propose to comply with IRDAs decision to cap single

company exposure at 10% of a companys capital? First of all, let me say that new regulations are not only about equity exposure, but encompass several other aspects too. Second, these norms are not just LIC-centric, but applicable to the whole industry. Our total assets of more than Rs 8-lakh crore are our legacy built on the basis of earlier regulations and norms under the Insurance Act. We have always followed applicable norms in our operations and we have an impeccable track record of being a prudent investor, keeping in view the best interests of our policyholders. New investment norms have several changes from the earlier one and we are working on them and are in touch with IRDA where we have problems. Will the exposure limit force LIC to divest in blue chips and invest in companies that have a lower credit rating?

Methodology
TYPE OF RESEARCHTo study the Insurance company in India. I have gone throughvarious news papers, magazines, websites and collectedinformation and dat a. This study is exploratory in naturebecause I am not going to give any suggestion or recommendation. Data collection:- (Secondary data) In data collection method we shall collect the secondary data from the following sources. News paper Magazine Internet Visual vmpro software (LIC) Other sources for information STATICAL TOOLS SPSS 16.0 MS EXCEL MS Word. MS Power point Parameters of Research Product range offered. Service quality. Claims settlements history. Network

Finding
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 Profits - Plan no.48 Jeevan Mitra - Plan no.88 New Jana Raksha 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 EDLI Group (Term) Insurance Scheme Group Savings Linked Insurance Scheme Group Superannuation Scheme Group Mortgage Redemption Assurance Scheme Joint Life Policy Jeevan Saathi - Plan no.89

Money Back Policy Money Back with Profit - Plan no.75 New Money Back - Plan no.93 Jeevan Surabhi 15 yrs - Plan no.106 Jeevan Surabhi 20 yrs - Plan no.107 Jeevan Surabhi 25 yrs - Plan no.108 Jeevan Bharati Plan No 160 Jeevan Samriddhi Plan No 154, 155, 156 157 Pension Plans or Annuities 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 Plans Term Assurance - Plan no.43 Mortgage Redemption - Plan no.52 Jeevan Aadhar - Plan no.114 Market Plus - Plan No 181 Jeevan Vishwas Plan No. 136 Jeevan Saral Plan No. 165 Jeevan Pramukh Plan No. 167 Bima Nivesh 2005 Plan No 171

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

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

Your Policy Bond and Its Safety The policy bond is the document that is given to you after we accept your proposal for insurance. The risk coverage commences after acceptance of your proposal and the conditions and privileges of your policy are mentioned in the policy bond. This is an important document which would be referred to for various servicing interactions with you Keep the policy bond safe. It will be required at the time of settlement of claims on the policy. You will also require it if you are availing a loan or want to assign the policy. Inform your spouse/Parents/Children as to where the policy is kept. In case you are handing over the policy bond to any person or office, please take a written acknowledgement. Keep a Photostat copy of the policy for your reference. Your Policy Number The policy number is consisting of nine digits and can be found at the top left hand corner of the schedule of your policy bond. This is a unique identification number that distinguishes your policies from other policies and will remain unchanged through out the lifetime of the policy. Remember to quote the policy number every time in your correspondence, as it helps us to locate your records for reference. Policy Conditions Every policy is taken for different types of needs; therefore the conditions for your policy will vary according to the Plan and Term of the policy. The policy schedule contains on the first page of your policy, like the ones mentioned above as well as other information like nominee, your address etc. It also shows the date of commencement of your policy, date of birth, date of maturity, due dates and months in which the renewal premiums are to be paid etc. The second page onwards carries the various policy conditions like risk coverage, additional risks coverage if opted for, standard benefits that are available for all policies, accident benefit if opted for, exclusion of risks if any and other conditions that govern the contract of insurance. Apart from death benefits there are other standard benefits and benefits opted by the policyholder.

Alterations In Policy There may be instances when you would like to make alterations in your policy like change of premium payment mode, reduction in premium paying term etc. your applications may be given in writing to the branch that services your policy for our further action. If Your Policy Is Lost Kindly make a thorough search before concluding that you have lost the policy bond. Look for the same within your residence, among your investment papers, at your office and even with your agent to whom you might have entrusted the document for some reason. It could have been even pledged with LIC/any other financial institution for availing a loan by you. LIC retains the policy bond when you go in for a loan against the policy. Make sure that the document you are searching is not one that has already been assigned to LIC, or to another financial institution. If the policy bond is partially destroyed due to natural causes like, fire, flood, etc, the remaining portion may be returned as evidence of loss of policy to LIC, while applying for a duplicate policy. In case you are sure that the policy bond is untraceable due to unknown causes, there is a simple procedure to comply with while applying for the duplicate policy at the branch that services your policy Your Contact Address Keep Us Posted without Fail Your address is very important for us. Without your latest address we would not be in a position to contact you for any service offering. We would not like to keep any benefit that is due to you pending for want of this very important information. Whenever you shift residences, please inform the new address to us. Other wise any communication we send to you, like premium notices, discharge vouchers for maturity and survival benefits etc., will get delayed in reaching you.LIC provides for change of addresses, inclusion of telephone numbers, mobile numbers and email addresses in your contact addresses information. Kindly inform your servicing branch to incorporate the same in your policy records.

Admission of Age Check your policy bond and see if your date of birth is correctly given there in. This is one of the factors on which the premiums you pay for your policy is arrived at. This would also form the basis of all future policies you might avail from us. In case your earlier policies do not have your date of birth incorporated and you do have a date of birth certificate issued by the competent authority, you may send an attested copy of the same to us, with a request to admit your age . Nomination Ensure that the nominees name is correctly incorporated in the policy bond. You may change the nomination in your policy any time during the lifetime of the policy In case you have not included the name of the nominee till now, please do not delay; inform us your nomination immediately. Kindly note that the change of nomination has to be done in the branch that services your policy. The nominee is the person to whom the insurance claim amounts would be payable, in case anything unfortunate within the purview of the policy conditions happens to you. The policy is usually taken by you to benefit your family nominate the persons wholl have the welfare of your family in your absence; the usual preferences being spouse and children. You may nominate even minors like your children, in which case you have to name another person wholl have the welfare of the minor children, as an appointee. Assignment In case you are raising a loan against your policy from LIC or any other financial institution, your policy would have to be assigned to LIC or the financial institution. When you assign the policy the title of the policy is shifted from your name to that of the institution. The policy would be reassigned to you on the repayment of the loan. A fresh nomination should be done after reassignment of the policy. Assignment of policies can be done even when a loan is not required or for some special purposes.

When to Pay the Premiums Remember to pay your premium in time, even if our notices do not reach you. There may be a postal delay.LIC usually sends premium notices one month in advance to the due month of the premium. The months in which premiums are due are given on the first page of the Policy bond. Grace Period For Premium Payment In case you have not paid the premium within the due date there is still time for you to make the payments without payment of interest on the premium. This period is called the grace period. (With the exception of some plans)The grace period for policies where the premium payment mode is monthly is 15 days from the due date. The grace period for policies where the premium payment mode is quarterly, half-yearly or yearly is one month but not less than30days. How and Where To Pay the Premiums By cash, local cheque (subject to realization of cheque ),Demand Draft at Branch Office. The DD and cheques or Money Order may be sent by post. You can pay your premiums at any of our Branches as 99% of our Branches are networked. Many Banks do accept standing instructions to remit the premiums. So by providing a standing instruction to your Bank to debit your account for the premium amount and send it vide a bankers cheque to LIC, on the due dates and months mentioned on your policy bond. Through Internet : Payment of premiums can be made through Internet through Service Providers viz. HDFC Bank, ICICI Bank, Times of Money, Bill Junction, UTI Bank, Bank of Punjab, Citibank, Corporation Bank, Federal Bank and Bill Desk.

Premium payment can also be made through ATMs of Corporation Bank and UTI Bank. Premium payment can also be made through Electronic Clearing Service (ECS) which has been launched at Mumbai, Hyderabad, Chennai, Kolkata, New Delhi, Kanpur, Bangalore, Vijaywada, Patna, Jaipur, Chandigarh, Trivandrum. A policyholder having an account in any Bank which is a Member of the local Clearing House can opt for ECS debit to pay premiums. The policyholders wishing to use this system would have to fill up a Mandate Form available at our Branches/DO and get it certified by the Bank. The certified Mandate Forms are to be submitted to our BO/DO. Policy can be anywhere in India Citibank Kiosks at Industrial Assurance Building, Church gate, New India Building, Santa Cruz, Jeevan Shikha Building, Borivili are dedicated for collection of premiums through cheques. Policy Status Where Available Status of your policy indicates if your policy is in force or has lapsed due to nonpayment of premium. It also provides other important information with respect to your policy, for your reference. The status of your policy is available at the branch that services your policies. It is also available through our Interactive Voice Response Systems in select cities In cities connected by our computerized networks the status will be available in any of the branches. Now the policy status of policies being serviced in the cities connected by network are also available through Internet In select cities online touch screen kiosks are also provided where you can view your policy status. Revival of Lapsed Policies If your policy has lapsed due to non-payment of premiums within the due date, the terms and conditions of the policy contract are rendered void, till you revive your policy. A lapsed policy has to be revived by payment of the accumulated premiums with interest as well as giving the health requirements as required. Always keep your policy in force to ensure that your family gets their financial protection assured by your policy. However certain concessions dependent on the

term for which you have paid the premiums are available with the exception of some plans for claims concession Availing Loans on Policies Many of our plans are of endowment type and you would be allowed to raise a loan against your policy should you require funds. You repay the loan with interest or continue paying the interest and allow the loan to be deducted at the time of the claim payments. Further loans on policies are also allowed after deduction of earlier out standings Most financial institutions too allow loans against LIC policies based on the value LIC quotes on request from you. Surrender Value This is the value which is the amount payable to you should you decide to discontinue the policy and encash the same from LIC. Surrender value is payable only after three full years premiums are paid to LIC. More over if it is a participating policy the Bonus get attached to it as per prevalent rules. Surrender of policy is not recommended since the surrender value would always be proportionately low. Should you decide to go in for insurance at this stage further insurance would be available to you at a much higher premium because your age would have advanced since taking out the earlier policy.