lic

LIFE INSURANCE CORPORATION OF INDIA

Project submitted for internal assessment of Welfare Economics

Under the guidance of

Prof. Pankaj Upadhyay

Prepared By

Ankit Kumar Rai

SE-2

Roll No.-7

IIPM 1


IIPM TOWER, SATBARI,CHANDAN HAULA, CHATTARPUR-BHATIMINES ROAD NEW DELHI

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ABSTRACT

The main aim was to study and get experienced about the organization, its working, its structure, its growth, its strategies and other such things. The primary data was collected through direct interaction, through the guidance of its employees, with the assessment of the external guide and the manager himself.

The research is restricted to the limited area only because of the limited duration of for the project, which results in the less co-operation with the organization.

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ACKNOWLEGEMENTS

I am very greatly obligated to Mr. PANKAJ UPADHAY to

help me out whenever needed and i thank him for giving me

opportunity to do this project.

Ankit Kumar Rai

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TABLE OF CONTENTSPART PERTICULERS PAGE NO

PART A INTRODUCTION

INDUSTRY PROFILE

COMPANY PROFILE

01

03

06

PART B MCKINSEY’S 7S MODEL 19

PART C SWOT ANALYSIS 31

PART D ANNUAL REPORT 36

PART E LEARNING EXPERIENCE 39

BIBLIOGRAPHY 46

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Chapter -1

7


INTRODUCTION

INTRODUCTIONThe Insurance sector in India governed by Insurance Act, 1938, the Life Insurance

Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972,

Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other

related Acts.

The insurance sector in India has come full circle from being an open competitive

market to nationalisation and back to a liberalised market again. Tracing the

developments in the Indian insurance sector reveals the 360 degree turn witnessed

over a period of almost two centuries.

Life Insurance in its modern form came to India from England in the year 1818.

Oriental Life Insurance Company started by Europeans in Calcutta was the first life

insurance company on Indian Soil. Prior to 1912 India had no legislation to regulate

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insurance business. In the year 1912, the Life Insurance Companies Act, and the

Provident Fund Act were passed

However, it was much later on the 19th of January, 1956, that life insurance in India

was nationalized. About 154 Indian insurance companies, 16 non-Indian companies

and 75 provident were operating in India at the time of nationalization.

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INDUSTRY

PROFILE

INSURANCE

“Insurance is a contract between two parties whereby one party called

insurer undertakes in exchange for a fixed sum called premium, to pay the

other

party called insured a fixed amount of money on the happening of a certain

event.”

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Insurance is protection against financial loss arising on the happening

of an unexpected event. Insurance companies collect premiums to provide

for this protection. The primary purpose of Life insurance is the protection of

the family a loss is paid out of premium collected from the insuring public

and the Insurance Companies Act as trustees to the amount collected.

Insurance companies collect premiums to provide for this protection. Insurer

(i.e. insurance companies) agrees/ undertakes, in consideration of money

(premium), to makes good the loss suffered by the insured against risk. Thus

there are two parties to an insurance contract.

The documents lying down the contract is called (insurance) policy.

The property, which is insured, is the “subject” matter of insurance “. In short

under Life insurance a specified amount is payable on the death of the insured

or upon the expiry of a specified period of time, whichever is earlier.

KEY PLAYERS IN THE INSURANCE INDUSTRY

1. HDFC STANDARD LIFE INSURANCE

2. ICICI PRUDENTIAL

3. TATA AIG

4. BIRLA SUN LIFE INSURANCE

5. MAX NEW YORK

6. SAHARA LIFE

7. SBI LIFE INSURANCE

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8. AXA (AIRTEL, I.E. BHARTI GROUP’S)

9. OM KOTAK

10. ALLIANZ BAJAJ

11. AVIVA

12. ING VYSYA

13. RELIANCE LIFE INSURANCE

14. METLIFE INSURANCE

15. SRIRAM SANLAM

CONTENTS PAGE NO

BACKGROUND AND INCEPTION 12

NATURE OF BUSINESS 14

AREA OF OPERATION 15

PRODUCT PROFILE 16

AREA OF OPERATION 18

OWNERSHIP PATERN 19

COMPETITORS INFORMATION 20

INFRASTRUCTURE FACILITIES 21

WORK FLOW MODEL 22

FUTURE GROWTH AND PROSPECTS 23

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COMPANY

PROFILE

13


a) BACKGROUND AND INCEPTION.

Life Insurance Corporation of India

Type Public limited company or Government-owned corporationFounded September 1, 1956

Headquarters Headquarters in Mumbai, India (Various other locations in India and abroad)

Key people T. S. Vijayan (Chairman), D. K. Mehrotra and Thomas Mathew (Managing Directors)

Industry Life insuranceProducts Insurance and Pension Plans

Employees Over 1000000Parent NIL

Subsidiaries LIC Housing Finance Limited, LIC Nepal, LIC LankaWebsite http://www.licindia.com

The Insurance sector in India governed by Insurance Act, 1938, the Life Insurance

Corporation Act, 1956 and General Insurance Business (Nationalisation) Act, 1972,

Insurance Regulatory and Development Authority (IRDA) Act, 1999 and other

related Acts.

14

http://www.licindia.com/

http://en.wikipedia.org/wiki/Website

http://en.wikipedia.org/wiki/Subsidiary

http://en.wikipedia.org/wiki/Holding_company

http://en.wikipedia.org/wiki/Employment

http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Life_insurance

http://en.wikipedia.org/wiki/Industry

http://en.wikipedia.org/wiki/Managing_Director

http://en.wikipedia.org/wiki/Chairman

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Headquarter

http://en.wikipedia.org/wiki/1956

http://en.wikipedia.org/wiki/September_1

http://en.wikipedia.org/wiki/Government-owned_corporation

http://en.wikipedia.org/wiki/Public_limited_company

http://en.wikipedia.org/wiki/Category:Types_of_companies


The insurance sector in India has come full circle from being an open competitive

market to nationalisation and back to a liberalised market again. Tracing the

developments in the Indian insurance sector reveals the 360 degree turn witnessed

over a period of almost two centuries.





Provident Fund Act were passed

However, it was much later on the 19th of January, 1956, that life insurance in India

was nationalized. About 154 Indian insurance companies, 16 non-Indian companies

and 75 provident were operating in India at the time of nationalization.

15


b) NATURE OF BUSINESS





Provident Fund Act were passed.

LIC is a service industry that serves the people by providing the securities against

the accidents, death and other such happenings of life. It provides a security against

life, marine, fire and other such things.

It provides the financial assistance under some uncertain conditions, which makes

the possibility for a person to come out of the situation.

Thus it becomes the financial asset for a person which is regulated and maintained

by the premiums paid by the policy holders.

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c) MISSION, VISSION AND QUALITY POLICY .

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." Expansion in the business along with the welfare of the society

and surrounding.

QUALITY POLICY:

Spread Life Insurance widely and in particular to the rural areas and to the socially

and economically backward classes with a view to reaching all insurable persons in

the country and providing them adequate financial cover against death at a

reasonable cost.

Maximize mobilization of people's savings by making insurance-linked savings

adequately attractive.

Conduct business with utmost economy and with the full realization that the moneys

belong to the policyholders.

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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 capability in

furthering the interests of the insured public by providing efficient service with

courtesy.

d) PRODUCT/SERVICE PROFILE

INSURANCE PLANS

As individuals it is inherent to differ. Each individual’s insurance needs and requirements are different from that of the others. LIC’s Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement.

Jeevan Anurag Komal Jeevan CDA Endowment Vesting At 21 Marriage Endowment Or

Educational Annuity Plan CDA Endowment Vesting At 18 Jeevan Kishore Jeevan ChhayaChild Career Plan Child Future Plan

Jeevan Aadhar Jeevan Vishwas

The Endowment Assurance Policy The Endowment Assurance Policy-Limited Payment Jeevan Mitra(Double Cover Endowment Plan) Jeevan Mitra(Triple Cover Endowment Plan) Jeevan Anand New Janaraksha PlanJeevan Amrit

Jeevan Shree-I

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http://www.licindia.com/high_worth_001_features.htm

http://www.licindia.com/endowment_007_features.htm







http://www.licindia.com/handicapped_002_features.htm

http://www.licindia.com/handicapped_001_features.htm

http://www.licindia.com/children_need_008_features.htm









http://www.licindia.com/children_need_001_benefits.htm


Jeevan Pramukh

The Money Back Policy-20 Years The Money Back Policy-25 Years Jeevan Surabhi-15 Years Jeevan Surabhi-20 Years Jeevan Surabhi-25 Years Jeevan Rekha (closed for sale)Bima Bachat

Jeevan Bharati

The Whole Life Policy The Whole Life Policy- Limited Payment The Whole Life Policy- Single Premium Jeevan Rekha (closed for sale)Jeevan Anand Jeevan Tarang

Two Year Temporary Assurance Policy The Convertible Term Assurance Policy Anmol Jeevan-I Amulya Jeevan

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http://www.licindia.com/amulya_jeevan_plan_009_benefits.htm

http://www.licindia.com/term_assurance_001_benefits.htm

http://www.licindia.com/term_assurance_003_features.htm

http://www.licindia.com/term_assurance_002_features.htm

http://www.licindia.com/jeevan_tarang_plan_007_features.htm


http://www.licindia.com/periodic_moneyback_002_features.htm

http://www.licindia.com/wholelife_003_features.htm




http://www.licindia.com/periodic_moneyback_006_benefits.htm







http://www.licindia.com/high_worth_002_benefits.htm


e) AREA OF OPERATION.

LIC has 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-organisation 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 cross 2000.00 crore

mark of new business. But with re-organisation happening in the early eighties, by

1985-86 LIC had already crossed 7000.00 crore Sum Assured on new policies.

The six foreign units of the corporation comprises of three foreign branches at Fiji,

Mauritius and UK and three overseas subsidiaries at Bahrain, Nepal and Sri Lanka

collectively secured 55502 policies in the year 2006-2007 with first premium

income of Rs64.13 crores(us $14.8 million)

Saudi Arabia, LIC, LIC (international) Bahrain, new India assurance company and Al Hokair group of Saudi Arabia have joined together to form a joint venture company which will sell both life and non life products.

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f) OWNERSHIP PATERN:

It is a public limited company or government owned company. But the stake of

government is reduced up to 50%. There are also other owners of the company that took

up 50% stake because for any public limited company there should be at least seven

private members who can take the responsibility to operate the company.

The key players in the LIC are chairman, Managing Directors and Zonal Managers and

Branch Managers.

The present chairman is T.S.VIJAYAN

The present M.D’s are: THOMAS METHEW, D.K.MAHROTRA,

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g) COMPETITORS INFORMATION.

The main competitors are:

1. HDFC STANDARD LIFE INSURANCE

2. ICICI PRUDENTIAL

3. TATA AIG

4. BIRLA SUN LIFE INSURANCE

5. MAX NEW YORK

6. SAHARA LIFE

7. SBILIFE INSURANCE

8. AXA (AIRTEL, I.E. BHARTI GROUP’S)

9. OM KOTAK

10. ALLIANZ BAJAJ

11. AVIVA

12. ING VYSYA

13. RELIANCE LIFE INSURANCE

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14. METLIFE INSURANCE

15. SRIRAM SANLAM

h) INFRASTRUCTURE FACILITIES

LIC is one of the strongest and largest organizations in India. It has got a very high financial strength. It operates in almost all the states of India. LIC has 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the year 1956.

The Headquarters of LIC are at Mumbai and there are three zonal branches of LIC. These are North zone, Central zone and south zone.

LIC consists of overall 2048 branches in India and all its branches are fully computerised, which shows its financial strength. Internet service is available to all its branches.

The other facilities are:

Modern and latest technology

High quality of buildings with very good accommodation for employees as well as for customer.

Very beautiful Guest Houses with high quality of hospitality.

Canteen facility to each and every branch.

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Transport facility.

Internet facility.

And other secondary facilities such as furniture, air condition etc.

I) WORK FLOW MODEL

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Marketing department

Hr department

Finance department

Branch manager

Accountant

Casher

Agent

Customer

HR Account Finance account

Customer

Assistant manager

Branch manager

MD

CHAIRMAN

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J) Future growth and prospectus

Selling around 90000 policies as compared to the previous years 55502

policies previous year at its subsidiaries.

Marketing quality improvement.

Service quality improvement.

Developing Hazards Analysis and Critical Control Points.

More interest towards the urban and rural areas.

More services for agents.

New training methods for employees as well as for agents.

The Actuarial department is looking to develop ten new policies.

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MCKINSEY’S 7S

FRAME WORK

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MCKINSEY’S 7-S FRAMEWORK

The seven S Framework first appeared in “the art of Japanese management “by Richard Pascale and Anthony Athos in 1981.they had been looking at how Japanese industry has been so successful, at around the same time that peters and Robert Waterman were exploring what made the excellent. The seven S model was born at a meeting of four authors in 1978. It went on to appear in “in search of excellence “by peters and Waterman, and was taken up as a basic tool by the global management consultancy Mckinsey: it is known as the Mckinsey 7S model.Mckinsey & CO’S 7S framework provides a useful framework for analyzing the strategic attributes of an organization. Together seven factors determines the in which a cooperation operates. The model indicates the major aspects in the company and the way in which they are coordinated.These seven elements are distinguished is now called hard S’s and soft S’s. The hard elements are feasible are easy to identify. They can be found in strategy statements, corporate plans, organizational charts and other documents.The four soft S’s however are feasible. They are difficult to describe since capabilities, values and elements of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization .therefore it is much more difficult to plan or to influence the characteristic of the soft elements

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STRUCTURE:

The organization chart and the associated information that shows who

Reports to which whom and how tasks are both divided up an integrated

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BRANCH MANAGER

BRANCH MANAGER

FINANCE MANAGER

ACCOUNTANT

ASSISSTENT MANAGER

TRAINERS

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CHAIRMAN

MD NORTH ZONE MD SOUTH ZONEMD CENTRAL ZONE

ZONEL MANAGER ZONEL MANAGER ZONEL MANAGER

MARKETING MANAGER

FINANCE MANAGER

HR MANAGER

BRANCH MANAGER

AGENT

AGENCY MANAGER

SALES MANAGER

CASHIER

SALES MANAGER

BRANCH MANAGER


SUBSTRUCTURE

MARKETING DEPARTMENT

The main functions of the marketing department are:

Advertisement and publicity

Branding and image

Channel marketing

Corporate communication

Sales and distribution

Customer service goals

Leadership commitment

People management

Charts owing hierarchy of Marketing Department

HOD MARKETING

MANAGERS

AGENCY MANAGER

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FINANCE DEPARTMENT

Duties and Functions of Finance Department

Correspondence with financial institution

Submission of periodical reports to financial institutions

Preparation of budget

Deployment of funds

Medical reimbursement of employees

Insurance fire, medical, duty free & other insurance

Liaison with internal, statutory, CAG and tax authorities

Preparation of accounts & schedules

Cash and bank transaction

Chart showing hierarchy of Finance Department

HOD FINANCE

MANAGERS

BRANCH MANAGER

FINANCE MANAGER

ACCOUNTANT

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HR DEPARTMENT

The functions of hr department are:

Human Resource Development

Performance Appraisal

Personal development

Potential Appraisal Development

Feed back management

Rewards

Employment welfare

Training

Salaries

Remuneration

Organization and system development

Human Resource information

Incentives

Recruitment

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ASSISTANT MANAGER ASSISTANT MANAGERS

TRAINEESTRAINEES


Chart showing hierarchy of HR Department

HOD HR

SENIOR MANAGER

BRANCH MANAGER

MANAGERS

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SKILLS

An organization’s dominate capabilities and competencies.

Individual capabilities of each and every employee.

The skills here refers too the various employees, the employees are further divided into

three categories. This first category contains the people who are in the top-management

level the second category consists of the branch managers. The third category consists

of the supervisor’s office assistants and the employees at operational level.

The first category consists of the people who are in the decision making process in

LIC. These people are highly qualified. The second level is related with office and

operation management. These people are also trained in computer Applications,

secretarial skills, accounting skills etc.

TRAINING SYSTEM:

The Union emphasizes on training the employees. Most of the training given to the employees here are On-the-Job training and few Off-the-Job Training.

Technical Input Training

Basic Computer Applications.

Data Base Administrator

Finance Training for non-Finance Officer

Co-Operative management Training Programs

Maintenance of Record and Auditing

Seminars are conducted.

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STYLE

How managers collectively spend their time and attention and how they

Use symbolic behaviour. How management act is more important than what

Management says.

LIC follows Top to Bottom or Top down style system.

The Styles of the organization is said to follow the non participative type that is the

management cadre follow the non participative type of administration. The fact is that

for a service industry MBO is not suitable.

The Indicators of the Style are:

Follows Orders, rules and procedure

Is always Reliable, Dependable

The management follows the top down system style for its working, strategies. It means

that the decisions are only taken by top level authorities and lower level authorities are

not participating in the decision making.

The top level management is formulating the plans, strategies, goals and boundaries but

the middle and lower level management is just following these decisions only to

achieve the organization goals.

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STRATEGY

A set of decisions and actions aimed at gaining a sustainable competitive

Advantage to gain the customer satisfaction and expand the welfare of the company.

The main strategies for current year are as follows.

Aims to conduct 5 Consumer Awareness Program and various Seminars.

Aims at conducting agents’ meetings.

Aiming to set up new sales promotional and advertisement activities.

Some new policies for women.

Joining with other programs.

Advertising through banners and coupons

Provide Calendars and greetings

Sponsoring of events.

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SYSTEMS:

The flow of activities involved in the daily operations of the business, including its

core process. The company enjoy one of the finest ranges of systems in MIS (order

execution system) and Performance appraisal system (Rating system).

The term system refers to all rules, regulations & procedures both formal &

informal that complement the organization structure. System shows the way in

which the organization adopted various activities in the organization. It includes

Cost Accounting procedures, Capital budgeting system, recruitment, training &

development system LIC has its own standing orders for maintaining discipline

among its employees. The standing orders are applicable to all its employees,

including the office staff. The standing orders contain the rule & procedure to be

adopted in case of minor and major misconduct done by employees.

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STAFF

How companies develop employees and shape basis values.

The staff deals with the various personnel Policies followed by the Organization.

Below are given the personnel policies followed by the Organization.

There are around 1000000 employees working in LIC. The Human

Resource Department is the in LIC Works as a sub Department of Administration

Department.

An Organization consists of three types of staffs.

TECHNICAL STAFF

Technical staffs are the staffs which do all the overall mechanical, electronics and

electrical failures of the company. These staffs are under the engineering services

department.

SUPERVISORY STAFF

Supervisors are the persons who supervise the activities of a department. He directs

the employees to perform the work in proper manner. They are under the control of

that department engineer. Supervisors are given a monthly schedule.

CLERICAL STAFF

A clerical staff is a person who undertakes all the clerical activities in an

Organization .He is mainly concerned with the General Services department. Also

wants to up to date all the accounts of the company like bills dues, transactions,

payments etc

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SHARE VALUES

Commonly held believes, mindsets and assumptions that shapes how an

organization behaves its corporate culture.

These shared values include the mission and vision of the organization. It also

includes objective values. Environment Policies etc. LIC has the mission to provide

a lucrative market for farmers to sell their policies and to provide best policies to

urban customers.

Its Vision is to produce more policies in the forth-Coming years. LIC also

follows environment Policies. It also takes into account the welfare of the society.

The organization has its own policy making manpower that are mainly employed for

the welfare of the society.

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SWOT ANALYSIS

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SWOT ANALYSIS Strength:

1. L.I.C is a Govt. undertaking.

2. Both local and urban coverage.

3. Good corporate image.

4. Strong financial position.

5. Efficient management of all types of resources.

6. Computerised operations.

7. Encourages both employee and customer involvement.

8. Well qualified staff.

9. Committed workforce.

10. Efficient management.

Weakness:

1. Only life insurance sector involved.

2. Lapsation of some policies.

3. Poor implementation of some policies

4. Less coordination between different subsidiaries

5. Laps of premiums.

6. Time lag between applications received and sanction.

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Opportunities:

1. Share market openings.

2. New Policies offering.

3. Mobilisation of more and more public savings.

4. Expand the business of real estates

5. Enter into the new business such as construction etc.

6. Enter into new areas.

Threats:

1. Entrance of rivals like Bajaj Alliance, ICICI Prudential etc.

2. To lose the customers to other competitors.

3. Increase in the competitors.

4. Lack of very good advertisement.

5. Rapid changes in consumer market.

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ANNUAL REPORT

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ACTUARIAL DEPARTMENT

During 2006-2007 five new products were introduced in which two were unit-linked plans-market plus and money plus, two were traditional children plans-child career and child future plans and one was micro insurance plan-Jeevan Madhur. Two plans viz. New Bima Gold and Jeevan Akshey v. were redesigned and repriced. All these plans have been quite successful and the corporation collected 65% of the new business premium and more than 54% new policies of the year under these plans.

F AND A DEPARTMENT

The financial as at 31- march, 2007 at DO/ZO have been generated through accounts module. LIC continues to be one of the highest tax payers in the public sector industry and has paid advance income tax of Rs 2033.62crores for the a-y-2007-2008 and service tax of Rs898.81crores in the F-Y-2006-2007. The total premium income is expected to around Rs 125000

MARKETING DEPARTMENT

Fiscal 2006-07 was a memorable year on business front; for recording outstanding growth which lead to budget achievement on all counts. in the year, we completed more than 3.82 crore policies showing a growth rate of 21.02% and adjusted Rs 39541.57 crores composite FP registering a growth rate of 118.64%,out of which Rs 18900.46 crores under non single premium with a growth rate of 102.53% and Rs 20641.11 crores under single premium with a growth rate of 135.82%.

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HR DEPARTMENT

The OD/HRD exercise on organizational transformation and customer orientation was extended to all our employees up to the cadre of AO proved to be a success both in terms of extent of employees covered (90.48%) The major challenges for HRD department for the current year will be to design an employee satisfaction index and a skill development programme especially for new positions.

VIGILANCE

Concerted efforts were made during the year to reduce the tendency of vigilance cases. The efforts proved quite fruitful and the number of regular vigilance cases had come down to 207 from 266 as on 31-03-2007.

46


LEARNING

EXPERIENCE

47


LEARNING EXPERIENCE IN AN ORGANISATION.

In plant training created a sensory impression in my brain putting across

what actually is an organization these sensory impression guide in relating theoretical

concepts which have been converted in past and which are being converted in future

also. Management concepts were difficult to analyze. But after in plant training, I felt

empowered with confidence to understand different management concepts in pragmatic

manner.

I came to know that, Importance of different management functions such as

planning, organizing, staffing, directing and controlling was known which guide

the organization in facing stiff competition from competitors.

I also came to know how work and things are getting done through others and

with others by centralized structure.

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In plant training also helped me in knowing the importance of group effort when

compared to individual effort in organization. Also importance of human

relations was known which help in getting things done through and with others.

I also came to know how different employees/ workers have different skills,

talents, abilities, attitudes etc and how they are being utilized in optimum

manner in achieving organization goals.

I also came to know about importance of common global language called

English in the organization.

I also came to know about importance of leadership traits which guide in

achieving personal as well as organization goals.

I also came to know how information technology and various systems have

reduced the time of an activity and documentation also.

49


Also I came across the importance of time management, which helps the entire

organization in meeting delivery dates of customers.

At last, I feel that in plant training has canalized my personal skill, talent, ability,

attitude etc which guide me in contributing to organization as well as nation by working

efficiently and effectively.

50


FINDINGS.1. L.I.C is growing and is gaining market share due to its collaboration with The

Govt. and better customer service.

2. Being the first Life insurance Company, LIC in J&K had Monopoly, which is the

reason LIC is having maximum market share but due to the entrance of new entrants

in the market the LIC is slowly loosing its market share.

3. Mainly LIC is loosing its customers to MetLife and Bajaj Alliance. As maximum

of the customers who have purchased life insurance policy from L.I.C had their

policies from MetLife earlier.

4. It was found that LIC is still market leader, the MetLife as competitor and ICICI

Pru, BAJAJ Alianz as the followers.

5. Financial problem of the customers was found to be the major reason behind the

lapse of policies. And the second major reason behind the lapse of life insurance

policies was delaying in the delivery of Credit Advices by The Govt.

6. L.I.C was rated good by 54% of the respondents, very good by 20% and average

by 24%, this shows the that L.I.C is making mark in the markets of Kashmir and is

the famous sort out after MetLife.

7. It was found that 91% of the respondents were educated about various products

and their procedures by the advisors, this shows that how much concerned the

advisors are about the customers.

8. L.I.C was ranked 1.49 on average as compared to other Life Insurance

Companies which shows that L.I.C is gaining the confidence of customers in

Kashmir.

51


SUGGESTIONS

1. Financial advisors of L.I.C should concentrate on customers rather than on targets,

like other life insurance companies L.I.C should also employ Unit managers in order

to increase the customer-employee interaction and better management of financial

advisors.

2. The company should direct the financial advisors to interact and cooperate with the

customers to remind them due dates of their premium which will reduce the lapse of

life insurance policies.

3. Direct delivery of credit advices through financial advisors to L.I.C regional office

or and credit advices reception centres should be setup to avoid late delivery of

credit advices and their by ensuring timely payment of premiums

4. District offices in each district should be setup to facilitate better services to the

customers and also there by taping more customers.

5. Company should also concentrate on the promotion of the company and also its

products to attract more and more customers like setting up canopies at different

places and placing hoardings, banners at prime locations in order to make presence

among the competitors.

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LIMITATIONS OF THE STUDY

Sample chosen may not be the true representative of population.

In certain cases the respondents were lazy and they filled the questionnaire without

any seriousness and pain.

There might be mistakes in interpreting the information obtained correctly

Due to time constraints the study was limited in extent.

The time allowed was only 28 days.

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BIBLIOGRAPHY

BOOKS

Kothari, C.R.; Research Methodology, Vishwa Prakashan.

Kotler, Philip; Marketing management, Pearson Education.

Websites

http://www.MetLife.com

http://www.lic.com

http://www.icicipru.com

http://www.bajajalianz.com

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http://www.bajajalianz.com/

http://www.icicipru.com/

http://www.lic.com/

http://www.MetLife.com/


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lic

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