NAME OF COLLEGE : GURUKUL COLLEGE OF

COMMERCE.

ADDRESS : TILAK ROAD,

GHATKOPAR (E),
MUMBAI 400077.

SUBJECT NAME : FINANCIAL SYSTEM.

A PROJECT ON : 7/9/2009.

SUBMITTED TO : PROF. JANVI RAO.

SUBMITTED BY : VORA . MONICK . J.

KOTHARI . VISHAL . G.
DEDHIYA . DARPAN . K.
RATNANI . HIREN . D.
KATTA . NIKHIL . H.

STANDARD : F.Y.B.B.I.

SIGNATURE :
 ACKNOWLEDGEMENT
ANY ATTEMPT AT ANY LEVEL CANNOT BE SATISFACTORILY COMPLETED
WITHOUT THE SUPPORT AND GUIDANCE OF LEARNED PEOPLE.WE
WOULD LIKE TO EXPRESS OUR IMMENSE GRATITUDE TO CO-ORDINATOR
( BANKING & INSURANCE ) PROF.RESMA KHAN . FOR HER CONSTANT
SUPPORT AND MOTIVATION THAT HAS ENCOURAGED US TO COME UP
WITH THIS PROJECT.

WE ARE ALSO THANKFUL TO ALL OTHER MEMBERS PRINCIPAL,TEACHERS

& FRIENDS WHO HAVE RENDERED THEIR WHOLE HERATED SUPPORT AT
ALL TIMES FOR THE SUCCESSFUL COMPLETION OF THIS PROJECT.
 INDEX

SR.NO TOPICS SIGN

1 CHEPTER-1
2
3 OBJECCTIVE
4 COMPARISION LIFE INSURANCE &
DEATH INSURANCE
5 HISTORY
6 NATIONALIZATION
7 VARIOUS TYPES OF LIFE
INSURANCE
SR.NO NAME PG.NO
CHAPTER-1

1 INTRODUCTION

RESEACH AND MATHODOLOGY

OBJCTIVE

SCOPE

CHAPETR-2

2 MENING OF LIFE INSURANCE

HISTROY

FEATURES

CHAPTER-3

3 PRODUCT LIFE CYCLE

WHY HAVE WE SELECTED THIS PROJET

CHEPTER-4

4 COMPARISON

CHAPETR-5
SR.NO NAME PG.NO
CHAPTER-1
1 INTRODUCTION
RESEACH AND MATHODOLOGY
OBJCTIVE
SCOPE
CHAPETR-2
2 MENING OF LIFE INSURANCE
HISTROY
FEATURES
CHAPTER-3
SR.NO NAME PG.NO
CHAPTER-1
1 INTRODUCTION
RESEACH AND MATHODOLOGY
OBJCTIVE
SCOPE
CHAPETR-2
2 MENING OF LIFE INSURANCE
HISTROY
FEATURES
CHAPTER-3
3 PRODUCT LIFE CYCLE
WHY HAVE WE SELECTED THIS
INTRODUCTION
As with most insurance policies, life insurance is a
contract between the insurer and the policy owner
whereby a benefit is paid to the designated
beneficiaries if an insured event occurs which is
covered by the policy.
The value for the policyholder is derived, not from
an actual claim event, rather it is the value derived
from the 'peace of mind' experienced by the
policyholder, due to the negating of adverse
financial consequences caused by the death of the
Life Assured.
To be a life policy the insured event must be based
upon the lives of the people named in the policy.
As with most insurance policies, life insurance is a
contract between the insurer and the policy owner
whereby a benefit is paid to the designated
beneficiaries if an insured event occurs which is
covered by the policy.
The value for the policyholder is derived, not from
an actual claim event, rather it is the value derived
from the 'peace of mind' experienced by the
policyholder, due to the negating of adverse
financial consequences caused by the death of the
Life Assured.
To be a life policy the insured event must be based
upon the lives of the people named in the policy.
 What Is Life Insurance?
Life insurance is a contract that pledges payment of an amount to the person
assured (or his nominee) on the happening of the event insured against.
The contract is valid for payment of the insured amount during:
The date of maturity, or
Specified dates at periodic intervals, or
Unfortunate death, if it occurs earlier.
Among other things, the contract also provides for the payment of premium
periodically to the Corporation by the policyholder. Life insurance is universally
acknowledged to be an institution, which eliminates 'risk', substituting certainty
for uncertainty and comes to the timely aid of the family in the unfortunate event
of death of the breadwinner.
By and large, life insurance is civilisation's partial solution to the problems caused
by death. Life insurance, in short, is concerned with two hazards that stand across
the life-path of every person:
That of dying prematurely leaving a dependent family to fend for itself.
That of living till old age without visible means of support.
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."
OTHER LIFE INSURANCE
 OBJECCTIVE
Spread Life Insurance widely and in particular to the rural areas and to the socially and economically
backward classes with a view to reaching all insurable person in the country and providing then adequate
financial cover again death at a reasonable cost.
Maximize mobilization of peoples saving by making insurance-linked saving adequately attractive.
Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds
in tryst, without losing sight of the interest of the community as a whole; the funds to be deployed to the
best advantage of the investors as well as the community as a whole, keeping in view national priorities
and obligations of attractive return.
Conduct business with utmost economy and with the full realization that the moneys belong to the policy
holders.
SR.NO NAME PG.NO
CHAPTER-1
1 INTRODUCTION
RESEACH AND MATHODOLOGY
OBJCTIVE
SCOPE
CHAPETR-2
2 MENING OF LIFE INSURANCE
HISTROY
FEATURES
CHAPTER-3
 ACKNOWLEDGEMENT
ANY ATTEMPT AT ANY LEVEL CANNOT BE SATISFACTORILY COMPLETED
WITHOUT THE SUPPORT AND GUIDANCE OF LEARNED PEOPLE.WE
WOULD LIKE TO EXPRESS OUR IMMENSE GRATITUDE TO CO-ORDINATOR
( BANKING & INSURANCE ) PROF.RESMA KHAN . FOR HER CONSTANT
SUPPORT AND MOTIVATION THAT HAS ENCOURAGED US TO COME UP
WITH THIS PROJECT.

WE ARE ALSO THANKFUL TO ALL OTHER MEMBERS PRINCIPAL,TEACHERS

& FRIENDS WHO HAVE RENDERED THEIR WHOLE HERATED SUPPORT AT
ALL TIMES FOR THE SUCCESSFUL COMPLETION OF THIS PROJECT.
 RESEACH AND METHODLOGY
Considering the project due to the enomity of the topic of the topic there is very limited scope
For primary data Hence most the data is collected from seondery source
Secondery soruce most of data of the project is collected from different secondery sources which
are various books,various wepsites ,news papers & magazins
SR.NO NAME PG.NO
CHAPTER-1
1 INTRODUCTION
RESEACH AND MATHODOLOGY
OBJCTIVE
SCOPE
CHAPETR-2
2 MENING OF LIFE INSURANCE
HISTROY
FEATURES
CHAPTER-3
 RESEACH AND METHODLOGY
Considering the project due to the enomity of the topic of the topic there is very limited scope
For primary data Hence most the data is collected from seondery source
Secondery soruce most of data of the project is collected from different secondery sources which
are various books,various wepsites ,news papers & magazins
 RESEACH AND METHODLOGY
Considering the project due to the enomity of the topic of the topic there is very limited scope
For primary data Hence most the data is collected from seondery source
Secondery soruce most of data of the project is collected from different secondery sources which
are various books,various wepsites ,news papers & magazins
Act as trustees of the insured public in their
individual and collective capacities.
Meet the various life insurance needs of the
community that would arise in the changing Social
and Economic environment.
Involve all people working in the Corporation to
the best of their Capacity in furthering the interest
of the insured public by providing efficient service
with courtesy.
Promote amongst all agents and employees of the
Corporation a sense of participation, pride and job
satisfaction through discharge of their duties with
dedication towards achievement of Corporate
Objective.
 COMPARISION LIFE INSURANCE & DEATH
INSURANCE

"I don't need life insurance; I've got death in

service with my job."

You've probably heard this before, however death

in service which is provided by your employer and
life insurance which is available from an insurer
such as us, differs greatly. For instance, life
insurance can be tailored to meet your needs,
whereas death in service has more structure and
often can't be adapted. We'd like to point out the
main differences between the two products.
 DEATH INSURANCE
Our minimum premium is just 6 per
month. Your actual premium
depends on your needs and
circumstance.
If you want to leave the benefits to a
specific person known as a
beneficiary, you can place your policy
in an absolute trust.
Life insurance can be tailored to
cover your needs. You could choose
an amount to help your family
maintain their standard of living, or
help to make sure the mortgage on
the family home is repaid.
V/S LIFE INSURANCE
Death in service pays out a lump
sum, if you die whilst employed by a
company that provides this benefit as
part of your overall employment
package.
Death in service is a scheme normally
offered free of charge, as part of the
benefit package from your employer.
If you leave the company and don't
have alternative cover, your family
could be at risk.
Death in service is normally three or
four times your annual salary.
 HISTORY
The Oriental Life Insurance company, the first Corporate entity in India
offering life insurance coverage, was established in Calcutta in 1818 by
BIPIN BEHARI DASGUPTA & others.
The Bombay Mutual Life Assurance Society, formed in 1870, was the first
native insurance provider. other insurance companies established in the
pre-independence era included
1. Bart Insurance Company (1896)
2. United India (1906)
3. National India (1906)
4. National Insurance (1906)
5. Co-operative Assurance (1906)
6. Hindustan Co-operative (1907)
7. Indian Mercantile
8. General Assurance
9. Swadeshi Life (later Bombay life)

The LIFE INSURANCE Act and the Provident Funds

Act were passed in 1912, Providing the first
regulatory machanisms in the life insurance
industry.
The Indian insurance companies Act of 1928
Authorized the government to obtain statistical
information from companies operating in both life
and non-life insurance areas.
A bill was also introduced in the Legislative
Assembly in 1944 to nationalize the insurance
industry.
 NATIONALIZATION
IN 1955, parliamentarian Feroze Gandhi raised the
matter of insurance fraud by owners of private
insurance companies.
Ram Kishan dalmia, owner of the Times of India
newspaper, was sent to prison for two years.
The parliament of india passed the life insurance if
India Act on 19th jun1956, and the life insurance
corporation of india was created on 1st sep1956.
The LIC company began operations with 5 zonal
offices, 33 divisional offices and 212 branch offices.
 Various Types of Life Insurance
Life Insurance Concepts There are two
primary categories of life insurance: term and
permanent. However, there are several
different types within each category. Listed
below are some of the most common types.
Consult your life insurance professional for a
more detailed description of the various types
of life insurance and how they may apply to
your specific situation.
Term Insurance - Life insurance under which the
death benefit is payable only if the insured dies during a
specified period.

Listed below are various types of term insurance.

Level Term - a fixed amount of coverage with premiums that are fixed
over a certain period of time, usually in 10-year increments.

Increasing/Decreasing Term - amount of coverage increases or decreases

throughout the term, premiums typically remain level.

Convertible Term - gives the policyholder the right to convert the term
policy to a permanent policy.

Group Term - insurance purchased typically by an employer or

professional association that is intended to cover several people, usually
resulting in reduced premiums
Permanent Insurance - Life insurance that provides
coverage throughout the insured's lifetime and may include
an element that builds cash value.
Indexed Universal Life - a form of permanent life insurance
that combines the premium and death benefit flexibility of
universal life insurance under which the cash value's current
crediting rate is tied to the performance of a financial index.
Most policies offer guarantees that if the index is negative,
the crediting rate will not go below zero.

Traditional Whole Life - remains in force during the

insured's entire lifetime, provided premiums are paid as
specified in the policy. Whole life insurance may also include
an element for accumulating growth (called "cash value").

Universal life insurance - characterized by its flexible

premiums, flexible face amounts, and unbundled pricing
factors.
The Life Insurance Corporation of India (Hindi:
) (LIC) is the largest life insurance company in India and also the
country's largest investor.; it is fully owned by the Government of India. It
also funds close to 24.6% of the Indian Government's expenses.It has
assets estimated of 5 Trillion Rupees. It was founded in 1956.
Headquartered in Mumbai, which is considered the financial capital of
India, the Life Insurance Corporation of India currently has 8 zonal Offices
and 101 divisional offices located in different parts of India, at least 2048
branches located in different cities and towns of India along with satellite
Offices attached to about some 50 Branches, and has a network of
around 1.2 million agents [1] for soliciting life insurance business from the
public,
Today LIC can boast of great achievements in IT and investment under
able Chairmanship of T S Vijayan. After years of poor performance despite
near monopoly, LIC started showing performance under G N Bajpai and
again went into slip under succeeding chairman till T S Vijayan took over.
He faded G N Bajpai into oblivion ably supported by HR initiatives taken
by another Genius K B Saha despite serious internal war by MDs. People
criticise LIC about large scale miss selling and holes in investment but
nobody criticises LIC's superb HR initiatives under sharpest ever HR ED K
B Saha and IT initiatives directly under T S Vijayan, the tallest of the
Chairmen of LIC.
People
LIC is one of the largest employers in India. The organization is headed by
4 officers, namely the Chairman and three Managing Directors. The top
brass is appointed by the Government of India after an intensive
selection procedure. Though the company was accused to go by mere
seniority in number of years for the selection of the senior management,
this has changed as seen in the case of Thomas Mathew and A. Dasgupta
(Managing Directors).
The Chairman assumes authority of the CEO and chairs the board while
the Managing Directors are allotted the three main categories of the
organization's functioning.
The current Chairman, Mr. T.S. Vijayan, is particularly responsible for the
major IT infrastructure turnaround that the organization has witnessed
and for its advanced EDMS structure.
D.K. Mehrotra manages the Marketing Units of LIC, which also happens
to be one of the largest spenders on advertising in India.
Thomas Mathew manages the close to $187 billion investment portfolio
of the company, which is the largest investor in the country.
A. Dasgupta manages the engineering and other functions, many of
which are very advanced in the Indian corporate scenario.
 TECHNOLOGY USAGE
LIC has been one of the pioneering organizations in India who introduced
the leverage of Information Technology in servicing and in their business.
Data pertaining to almost 10 crore policies is being held on computers in
LIC. We have gone in for relevant and appropriate technology over the
years.
1964 saw the introduction of computers in LIC. Unit Record Machines
introduced in late 1950s were phased out in 1980s and replaced by
Microprocessors based computers in Branch and Divisional Offices for
Back Office Computerization. Standardization of Hardware and Software
commenced in 1990s. Standard Computer Packages were developed and
implemented for Ordinary and Salary Savings Scheme (SSS) Policies.
The insurance giant opted for internet services for all its subscribers and
developed massive networking for own usage and internal governance.
While the pros and cons of internal networking remains concealed
within the officials and hidden for the common customers, the customer
portal somehow fails to satisfy the 21st century customers. Apparently,
low bandwidth, unwise web page hyper linking, illogical page set ups, all
just contribute to the irritation of common net age customers.

The portal gives opportunity to register any policy to be tagged up with

any one. As a matter of fact, if Mr. 'A' knows the policy number and
premium value of certain policy 'X' of Mr. 'B,' 'A' can tag up 'X' with his
own Profile in LICI portal and get all the details of the policy. Moreover,
though the organization is officially known as Life Insurance Corporation
of India, abbreviated, LICI, the portal welcomes a customer to LIC.

As a result of all these, online payment of premium through the site

could not be a popular option for the customers.

The site fails to show the details of all its recognized agents in its Agent
locator section.It has a great significance in today's life. jkk
"The services for the last forty years have concentrated on deterring
military conflict and the `big' war on the plains of Europe. That focus
has worked; we have avoided both. But what we have failed to deter
is low intensity conflict . . . And the strategic thinkers tell us that this is
the most likely form of conflict for the rest of this century. Thus, we
are well prepared for the least likely conflicts and poorly prepared for
the most likely." .
Additionally, LIC presents a bewildering array of unique and
challenging training requirements. Many of these requirements will
diametrically oppose training the unit for conventional operations.
The tendency to take the expedient approach and focus on the far
right of the LIC spectrum, Peacetime Contingency Operations and
conduct training as usual, while briefing that the LIC block has been
checked, will lead us to a possibly fatal false sense of security.
Instinctive behavior and ingrained training must be adjusted to fit new
circumstances. STXs must be developed locally or borrowed from
units who have already been through the training. The probability of
becoming involved in a LIC operation is high. The potential to attract
international attention, even with limited forces, is also great. Units
have demonstrated that with a balanced training focus and proper
preparation, many pitfalls outlined above can be avoided
 CONCLUSION

This booklet should provide you with much of the basic

information you need to make an informed decision about
buying life insurance. But, of course, you should explore your
specific needs further and discuss options with your producer
as you move closer to a final decision about your life
insurance purchase. By learning about the product, your
needs and price differences, you will have gone a long way
toward meeting your own insurance requirements. It will take
time and patience on your part, but as an educated consumer
you can make a wise decision about buying life insurance.
 BIBLIOGRAPHY
SITE : 1) WWW.GOOGLE.COM
2) WWW LIC .COM

GUIDE : TEACHERS & FRIENDS.