AN INTERNSHIP REPORT ON

GENERAL AWARENESS ON LIFE

INSURANCE POLICIES WITH
REFERENCE TO LIC

UNDER THE ESTEEMED

GUIDANCE OF: DONE BY:
DR.S.V.V.S.N.MURTHY G.KAVITANJALI
 CHAPTER-1
INTRODUCTION
FINANCE:
FINANCE is the process of raising funds or capital any kind of expenditure. Consumers, business, firms and
government often do not have the funds available to make expenditures, pay their debts or complete other
transactions and must borrow or sell equity to obtain money they need to conduct their operations. Savers and
investors, on other hand, accumulate funds which could earn interest or dividends if put to productive use.
These savings may accumulate in the form of savings deposits, savings and loan shares or pension and
insurance claims; when loaned out at interest or investment equity shares they provide a source of investment
funds.

Finance is a term for matters regarding the management, creation, and study of money and investments. It
involves the use of credit and debt, securities, and investment to finance current projects using future income
flows. Because of this temporal aspect, finance is closely linked to the time value of money and  interest rates.
AWARENESS ON LIFE INSURANCE
POLICIES:

Life insurance can be defined as a contract between an insurance policy holder and
an insurance company, where the insurer promises to pay a sum of money in
exchange for a premium, upon the death of an insured person or after a set period.

The primary purpose of life insurance is to provide a financial benefit to dependents

upon premature death of an insured person. The policy pays a specified amount
called a death benefit to the named beneficiary, when the insured dies.
NEED FOR THE STUDY:

With the help of this study we can know that whether the customers are aware of
insurance policies of LIC. We can also understand that whether the customers are
aware of bonuses and incentives of their policies and We can also understand that
which kind of insurance policy does the majority of customers likes. We can also
know that the customers feel secured to invest in a private life insurance Companies
and we also know that the customers are satisfied or not satisfied with the insurance
policies of LIC.
SCOPE FOR THE STUDY:

Area is restricted to Yanam only. Due to time constraint not

able to contact other customers in other cities. The project
have limited scope of 14 days. All the classes of the customers
were taken into consideration. This is a realistic source directly
collected from the customers of LIC. 
OBJECTIVES FOR THE STUDY:

1. To know the level of satisfaction of customers regarding services offered by LIC.

2. Identify whether the customers are aware of bonuses regarding their insurance
policies.

3. To know whether the customers receives benefits from their policies or not.

4. To analyze the customer opinion whether the premium paid in private insurance
company are safe.

5. To analyze which type of insurance policies preferred by various customers.

METHODOLOGY FOR THE STUDY:
The study is done by conducting a survey. For this a sample of 50 members. Who
have Life insurance policies in LIC are chosen. For this a structured questionnaire
has been created with 16 questions. The answers of each member of sample has
been recorded for analysis and interpretation. This study has been conducted using
primary and secondary sources.

- Primary sources – questionnaire.

-Secondary sources – Text books, websites. 

LIMITATIONS FOR THE STUDY:

1)The major limitation of this study is lack of time to carry out the survey.

2)There is also lack of response from some people.

3)The study covers only customers who are in yanam.

4) Due to some acknowledge customers the information which was collected is not
accurate data.
 CHAPTER-II
INDUSTRY PROFILE
The insurance sector is made up of companies that offer risk
management in the form of insurance contracts. The basic concept of
insurance is that one party, the insurer, will guarantee payment for an
uncertain future event. Meanwhile, another party, the insured or the
policyholder, pays a smaller premium to the insurer in exchange for
that protection on that uncertain future occurrence.
The amount of money charged by the insurer to the policy holder for
the coverage set forth in the insurance policy is called premium.
The insurance industry in India has around 57 insurance companies. Among
these, 24 are in the life insurance business and the rest are non-life insurance.
The Life Insurance Corporation (LIC) is a sole public sector company in the life
insurance business sector.
Life insurance companies offer coverage to the life of the individuals, whereas
the non-life insurance companies offer coverage with our day-to-day living like
travel, health insurance, our car and bikes, and home insurance. Not only this,
but the non-life insurance companies provide coverage for our industrial
equipment’s as well. Crop insurance for our farmers, gadget insurance for
mobiles, pet insurance etc.
 CHAPTER-III
COMPANY PROFILE
LIFE INSURANCE CORPORATION-
LIC:
LIC is known as India’s largest government owned Life Insurance and investment
corporation. The main role of LIC is to invest in global financial markets and different
government securities after gathering funds from people through their various life
insurance policies.

The life insurance corporation of India was established on 1 September 1956, when the
parliament of India passed the Life Insurance of India act that nationalized the insurance
industry in India. Over 245 insurance companies and provident societies were merged to
create the state-owned Life Insurance corporation of India.
As of 2019, Life Insurance corporation of India had total life fund of Rs 28.3 trillion.
The total value of sold policies in the year 2018 to 2019 is Rs 21.4 million. Life
Insurance corporation of India settled 26 million claims in 2018 to 2019. It has 290
million policy holders.

Life Insurance Corporation designs insurance plans to cater to every individual’s

requirement and promises to provide coverage at a nominal cost.
CHAPTER-IV
FINDINGS:
1. 76% of the policy holders are satisfied with their current insurance policies and
remaining 24% of the policy holders or not satisfied.

2. 44% of the customers or aware of their bonuses and remaining 56% of the
customers or not aware of their bonuses.

3. 56% of the customers receive benefits from their policies but remaining 44% of
the customers does not receive any benefits from their policies.

4. 36% of the customers feel that premium paid in insurance companies or not safe. 
 SUGGESTIONS:
1. LIC have to implement new services to satisfy remaining 24% of the policy
holders.

2. LIC have to bring awareness of bonuses regarding the policies of the customers.

3. 44% of the customers does not receive any benefits from their policies so LIC
have to provide policy benefits for all their customers.

4. LIC have to bring awareness regarding the premium paid in private insurance
companies are safe and secure.
CONCLUSION:
Insurance is a large investment and you will most likely purchase multiple policies through out your
lifetime. It is essential that you know what each type of insurance covers and how it works so you can
make the best decision about what to buy. Do not based your decision on just what is cheapest, but
look at what it provides.

Take the time to shop around and find the right insurance for your situation. People often say they
cannot afford insurance, but the reality is that they cannot afford not to have it. It can save them from
thousands or more dollars in unplanned expenses when unexpected situation arise. You do not want to
waste your money on policies that do not meet your needs, but the right insurance policy can protect
you and your family from unforeseen disasters.
THANK YOU