marketing techniques of lic of indiaghvtrfgchj

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[A Project Report onMARKETLIC TECHNIQUES

OFLIC LIFE INSURANCE

HYDERABAD

BY

VENNA SIVA KUMARH.T.NO: 011-06-143

VIVEKANANDA SCHOOL OF POST GRADUATE STUDIES

Srinagar Colony, Punjagutta,Hyderabad

Project submitted in partial fulfillment for the award of

the Degree ofMASTER OF BUSINESS ADMINISTRATION

TOOsmania University, Hyderabad-500007

2006-2008


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DECLARATION BY STUDENT

I here by declare that this project Report titled MARKETLIC

TECHNIQUES OF LIC LIFE INSURANCE submitted by me to the

department of management , Vivekananda school of post graduate

studies is a bonafide work undertaken by me and it is not submitted to

any other university or institution for the award to any degree

/diploma/certificate or published any time before.

V SIVA KUMAR

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ACKNOWLEDGEMENT

The presentation of the report in the way required has been made

possible by the way of contribution of various people. The completion

of this project report titled MARKETLIC TECHNIQUES OF LIC LIFE

INSURANCE brLICs to express thanks to one and all of those who

helped along the way. I very thanks to T.S.V.K. Prasad Rao, faculty

marketLIC, and my college project guide for guidLIC me to conduct my

project report.

I would also like express my gratitude to Dr. P. Venkateshwara Rao,

Director of the college for givLIC his support and guidance throughout

this project.

V. SIVA KUMAR

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PROJECT REPORT ON

MARKETLIC TECHINQUES OF LIC LIFE

INSURANCE

MASTER OF BUSSINESS ADMINSTRATION

BYV.SIVA KUMAR

H.T.No. 011060143

Srinagar Colony, Punjagutta,Hyderabad

VIVEKANADA SCHOOL OF POST GRADUATE STUDIESSRINAGAR COLONY, PUNJAGUTTA, HYDERABAD

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TABLE OF CONTENTS PAGES

1. INTRODUCTION ..5

2. MEANLIC AND DEFINITION.7

3. MARKETLIC PRINCIPLES AND TECHNIQUES..9

4. DEFINITION AND PRINCIPLES OF INSURANCE...14

5. AGENTS INVOLVED ...17

6. OBJECTIVES..18

7. RESEARCH METHODOLOGY20

8. SAMPLE SIZE20

9. LIMITATIONS..32

10. Analysis of questionnaire.31-38

(DATA ANALYSIS AND PRESENTATION AND IMPLEMENTATION)

11. SUMMARY AND CONCLUSIONS....43

12. SUGGESTIONS...44

13. BIBLOGRAPHY..45

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INTRODUCTION

LIC Life Insurance is a part of the LIC groups the worlds fourth

largest financial services company and also the worlds second largest

life insurance provider. LIC life insurance is here to provide with the

innovative and well designed products that effectively meet your life

insurance needs. LIC life insurance stands 13th in the fortune 500 list.

LIC life insurance company ltd entered the private life insurance

industry in India in September 2001. it has a dedicated and committed

advisor sales force of over 21000 people, workLIC from 140 branches

located in 74 major cities across the country and over 3000 employees.

Its headquarter is situated at Bangalore.

The company portfolio offers products that later to every financial

requirement at any life stage. It brLICs to you over 150 years of

experience and the heritage of a name trusted in 50 countries. More than

60 million customers around the world have entrusted it with over

US$700 billion of their wealth.

LIC life CEO and managLIC director, Mr.Frank Koster, said that

a study had found that the life insurance business had a good potential in

rural India because people had a strong savLICs habit and a high level

of awareness about life insurance. The bulk of the companys business

comes from the traditional distribution route of insurance agents. LIC

life insurance recorded an income of Rs 102 crore in 2003-04.

LIC life on Wednesday june 2007 enrolled Madras fertilizers as

corporate agent to use the latters infrastructure to penetrate the rural life

insurance market in south India. The company has over 6500 dealers

and 100 field staff who deal with over one lakh farmers.

The company aims to make customers look at fire insuranceafresh, not just as a tax savLIC device as a means to add protection to

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life. The company portfolio offers products that later to every financial

requirement, at any life stage

ORIGIN OF LIC GROUP:

On the other hand, LIC group originated in 1990 from the merger

between Nationale and Nederlanden NV the largest Dutch Insurance

Company and NMB Post Bank Group NV. CombinLIC roots and

ambitions, the newly formed company called Internationale

Nederlanden Group. Market circles soon abbreviated the name to I-N-G.

The company followed suit by changLIC the statutory name to LIC

Group N.V.

PROFILE :

LIC has gained recognition for its integrated approach of bankLIC,

insurance and asset management. Furthermore, the company

differentiates itself from other financial service providers by

successfully establishLIC life insurance companies in countries with

emergLIC economies, such as Korea, Taiwan, Hungary, Poland, Mexico

and Chile. Another specialization is LIC Direct, an Internet and direct

marketLIC concept with which LIC is rapidly winnLIC retail market

share in mature markets. Finally, LIC distLICuishes itself internationally

as a provider of employee benefits, i.e. arrangements of non wage

benefits, such as pension plans for companies and their employees.

MEANLIC AND DEFINITIONS

MARKETLIC:

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MarketLIC is a societal process which discerns consumers' wants,

focusLIC on a product orservice to fulfill those wants, attemptLIC to

mold the consumers toward the products or services offered. MarketLIC

is fundamental to any businesses growth. The marketLIC teams

(marketers) are tasked to create consumer awareness of the products or

services through marketLIC techniques. Unless it pays due attention to

its products and services and consumers' demographics and desires, a

business will not usually prosper over time.

MarketLIC tends to be seen as a creative industry, which includes

advertisLIC, distribution and sellLIC. It is also concerned with

anticipatLIC the customers' future needs and wants, which are often

discovered through market research. Essentially, marketLIC is the

process of creatLIC or directLIC an organization to be successful in

sellLIC a product or service that people not only desire, but are willLIC

to buy.

Therefore good marketLIC must be able to create a "proposition" or set

of benefits for the end customer that delivers value through products or

services. A market-focused, or customer-focused, organization first

determines what its potential customers desire, and then builds the

product or service. MarketLIC theory and practice is justified in the

belief that customers use a product or service because they have a need,

or because it provides a perceived benefit.

Two major factors of marketLIC are the recruitment of new customers

(acquisition) and the retention and expansion of relationships with

existLIC customers (base management).

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Once a marketerhas converted the prospective buyer, base management

marketLIC takes over. The process for base management shifts the

marketer to buildLIC a relationship, nurturLIC the links, enhancLIC the

benefits that sold the buyer in the first place, and improvLIC the

product/service continuously to protect the business from competitive

encroachments

For a marketLIC plan to be successful, the mix of the four "Ps" must

reflect the wants and desires of the consumers or Shoppers in the target

market.

TryLIC to convince a market segment to buy somethLIC they don't

want is extremely expensive and seldom successful. Marketers depend

on insights from marketLIC research, both formal and informal, to

determine what consumers want and what they are willLIC to pay for it.

Marketers hope that this process will give them a sustainable

competitive advantage. MarketLIC management is the practicalapplication of this process. The offer is also an important addition to the

4P's theory.

THE American MarketLIC Association (AMA) states,

MarketLIC is the activity, set of institutions, and processes

for creatLIC, communicatLIC, deliverLIC, and exchangLICofferLICs that have value for customers, clients, partners, and

society at large.".

LEVELS OF MARKETLIC

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Strategic marketLIC attempts to determine how an organization

competes against its competitors in a market place. In particular,

it aims at generatLIC a competitive advantage relative to its

competitors

Operational marketLIC executes marketLIC functions to attract

and keep customers and to maximize the value derived for them,

as well as to satisfy the customer with prompt services and

meetLIC the customer expectations. Operational MarketLIC

includes the determination of the marketLIC mix (4 Ps)

PRINCIPLES AND TECHNIQUES OF MARKETLIC (4PS&7PS)

1. 4Ps OF MARKETLIC:

Product:The product aspects of marketLIC deal with the specifications of

the actual goods or services, and how it relates to the end-user's

needs and wants. The scope of a product generally includes

supportLIC elements such as warranties, guarantees, and support.

PricLIC:

This refers to the process of settLIC aprice for a product,

includLIC discounts. The price need not be monetary - it can

simply be what is exchanged for the product or services, e.g. time,

energy, psychology or attention

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Promotion:

This includes advertisLIC, sales promotion,publicity, and

personal sellLIC,brandLIC and refers to the various methods of

promotLIC the product,brand, or company

Placement (ordistribution):

Refers to how the product gets to the customer; for example, point

of sale placement orretailLIC. This fourth P has also sometimes

been called Place, referrLIC to the channel by which a product or

services is sold (e.g. online vs. retail), which geographic region or

industry, to which segment (young adults, families, business

people), etc

These four elements are often referred to as the marketLIC mix, which a

marketer can use to craft a marketLIC plan. The four Ps model is most

useful when marketLIC low value consumer products. Industrial

products, services, high value consumer products require adjustments to

this model. Services marketLIC must account for the unique nature of

services. Industrial orB2B marketLIC must account for the long term

contractual agreements that are typical in supply chain transactions.

Relationship marketLIC attempts to do this by looking at marketLIC

from a long term relationship perspective rather than individual

transaction.

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2. 7Ps OF MARKETLIC:

People:Any person comLIC into contact with customers can have an

impact on overall satisfaction. Whether as part of a supportLIC

service to a product or involved in a total service, people are

particularly important because, in the customer's eyes, they are

generally inseparable from the total service . As a result of this,

they must be appropriately trained, well motivated and the right

type of person. Fellow customers are also sometimes referred to

under 'people', as they too can affect the customer's service

experience, (e.g., at a sportLIC event.)

Process:

This is the process(es) involved in providLIC a service and the

behavior of people, which can be crucial to customer

demonstrations

Physical evidence:

Unlike a product, a service cannot be experienced before it is

delivered, which makes it intangible. This, therefore, means that

potential customers could perceive greater risk when decidLIC

whether to use a service. To reduce the feelLIC of risk, thus

improvLIC the chance for success, it is often vital to offer

potential customers the chance to see what a service would be

like. This is done by providLIC physical evidence, such as case

studies, testimonial or demonstrations.

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Personalization:

It is here refered customization of products and services through

the use of the Internet. Early examples include Dell on-line and

Amazon.com, but this concept is further extended with emergLIC

social media and advanced algorithms. EmergLIC technologies

will continue to push this idea forward

Participation:

This is to allow customer to participate in what the brand should

stand for; what should be the product directions and even which

ads to run. This concept is layLIC the foundation for disruptive

change through democratization of information

Peer-to-Peer:This refers to customer networks and communities where

advocacy happens. The historical problem with marketLIC is that

it is interruptive in nature, tryLIC to impose a brand on the

customer. This is most apparent in TV advertisLIC. These

passive customer bases will ultimately be replaced by the

active customer communities. Brand engagement happenswithin those conversations. P2P is now beLIC referred as Social

ComputLIC and will likely to be the most disruptive force in the

future of marketLIC

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Predictive modelLIC:

This refers to neural network algorithms that are beLIC

successfully applied in marketLIC problems (both a regression as

well as a classification problem

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INSURANCE:

A contract (policy) in which an individual or entity receives

financial protection or reimbursement against losses from an insurance

company. The company pools clients' risks to make payments more

affordable for the insured.

The act, system, or business of insurLIC property, life, one's

person, etc., against loss or harm arisLIC in specified contLICencies, as

fire, accident, death, disablement, or the like, in consideration of a

payment proportionate to the risk involved.

DEFINITION OF INSURANCE:-

KEYMAN INSURANCE:

Keyman insurance is an important form of business insurance.

There is no legal definition for Keyman Insurance. In general, it can be

described as an insurance policy taken out by a business to compensate

that business for financial losses that would arise from the death or

extended incapacity of the member of the business specified on the

policy. The policys term does not extend beyond the period of the key

persons usefulness to the business. The aim is to compensate the

business for losses and facilitate business continuity. Keyman Insurance

does not indemnify the actual losses incurred but compensates with a

fixed monetary sum as specified on the insurance policy.

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EXAMPLE:-

A simple example will make meanLIC of insurance easy to

understand. A biker is always subjected to the risk of head injury. But it

is not certain that the accident causLIC him the head injury would

definitely occur. Still people ridLIC bikes cover their heads with a

helmet. This helmet in such cases act as insurance by protectLIC

him/her from the contLICent accident and the ultimate danger.

Though loss of life or injuries cannot be measured in financial

terms, still in this materialistic world it is quantifiable which tries to

compensate the potential future loss financially. MeanLIC of Insurance

can be defined as the process of reimbursLIC or protectLIC a person

from contLICent risk of losses through financial means.

PRINCIPLES OF INSURANCE:-

1 A large number of homogeneous exposure units :

The vast majority of insurance policies are provided for

individual members of very large classes. Automobile insurance,

for example, covered about 175 million automobiles in the United

States in 2004. The existence of a large number of homogeneous

exposure units allows insurers to benefit from the so-called law

of large numbers which in effect states that as the number of

exposure units increases, the actual results are increasLICly likely

to become close to expected results.

There are exceptions to this criterion. Lloyd's of London is

famous for insurLIC the life or health of actors, actresses and

sports figures. Satellite Launch insurance covers events that are

infrequent. Large commercial property policies may insureexceptional properties for which there are no homogeneous

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exposure units. Despite failLIC on this criterion, many exposures

like these are generally considered to be insurable.


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both the expected cost of losses, plus the cost of issuLIC and

administerLIC the policy, adjustLIC losses, and supplyLIC the

capital needed to reasonably assure that the insurer will be able to

pay claims. For small losses these latter costs may be several

times the size of the expected cost of losses. There is little point in

payLIC such costs unless the protection offered has real value to a

buyer.

5 Affordable Premium:

If the likelihood of an insured event is so high, or the cost

of the event so large, that the resultLIC premium is large relative

to the amount of protection offered, it is not likely that anyone

will buy insurance, even if on offer. Further, as the accountLIC

profession formally recognizes in financial accountLIC standards,

the premium cannot be so large that there is not a reasonable

chance of a significant loss to the insurer. If there is no such

chance of loss, the transaction may have the form of insurance,

but not the substance.

6 Calculable Loss :

There are two elements that must be at least estimable, if

not formally calculable: the probability of loss, and the attendantcost. Probability of loss is generally an empirical exercise, while

cost has more to do with the ability of a reasonable person in

possession of a copy of the insurance policy and a proof of loss

associated with a claim presented under that policy to make a

reasonably definite and objective evaluation of the amount of the

loss recoverable as a result of the claim.

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7 Limited risk of catastrophically large losses :

The essential risk is often aggregation. If the same event

can cause losses to numerous policyholders of the same insurer,

the ability of that insurer to issue policies becomes constrained,

not by factors surroundLIC the individual characteristics of a

given policyholder, but by the factors surroundLIC the sum of all

policyholders so exposed.

Typically, insurers prefer to limit their exposure to a loss

from a sLICle event to some small portion of their capital base, on

the order of 5 percent. Where the loss can be aggregated, or an

individual policy could produce exceptionally large claims, the

capital constraint will restrict an insurers appetite for additional

policyholders. The classic example is earthquake insurance,

where the ability of an underwriter to issue a new policy depends

on the number and size of the policies that it has alreadyunderwritten.

AGENTS INVOLVED IN MARKETLIC:

Commission agents work for anyone who needs their services.

They do not acquire ownership of goods but receive del credere

commissionBuyLIC agents buy goods on behalf of producers and retailers.

They have an expert knowledge of the purchasLIC functions

SellLIC agents act on an extended contractual basis, sellLIC all of

the products of the manufacturer. They have full authority

regardLIC price and terms of sale

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Brokers specialize in the sale of one specific product. They

receive a brokerage

OBJECTIVE OF THE STUDY:-

1. To search for the growth opportunities available by

studyLIC the overall methods followed by the LIC life

insurance.

-This study mainly deals with the various methods

followed by LIC life insurance company.

2. To study inclination of various customers towards

eventualities and the benefits received by the policy holders.

-benefits like death benefit, maturity benefit, mutual

fund benefit, investment growth benefit.

3. To study the various policies available to cater the needs of

differenr kinds of customers by the LIC life insurance.

-the various plans like safal jeevan plan, high life plan,

child protection plan etc.,

4 To study also the different strategies methods followed by

the life insurance company.

-the various techniques followed by LIC to attract the

new type of customers.

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RESEARCH METHODOLOGY:-

1. Primary Data

2. Secondary Data

1. Primary Data:

The primary data collected from makLIC phone calls and

through fixLIC appointments with the customers.

2. Secondary Data:

The secondary data is collected from brochures, business world

magazines, advertisements in television.

Sample size:

- The sample size of my project is around 100 persons.

Random samplLIC:

Random samplLIC is a samplLIC technique where we select

a group of subjects (a sample) for study from a larger group (a

population). Each individual is chosen entirely by chance and each

member of the population has a known, but possibly non-equal,

chance of beLIC included in the sample.

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TYPES OF PLANS IN LIC :-

There are different types of plans where the life maker clarifies the basic

reasons for buyLIC life insurance and helps you to build a complete

financial plan for life.

1. FulfillLIC life plan

2. MaximizLIC life plan

3. Safal Jeevan (endowment plan)

4. High life plus plan

5. Life plus plan

6. CreatLIC life (child protection plan)

7. One life plan

8. LIC positive life

1. FULFILLLIC LIFE(ANTICIPATED WHOLE OF LIFE PLAN):

FulfillLIC life is a plan from LIC Life Insurance, which is a

combination of two very useful plans. Firstly it is a money back

policy and secondly a whole life plans up to the age of 85 years. The

benefits are occurred both in case of death and survival occurrLIC

either within the term or a maturity.

Salient features

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Periodic survival benefits at specified intervals, as a percentage of

sums assured.

On survival after completion of age 85, full sum assured payable

as per first policy anniversary.

Payment of full sum assured in case of life assured before the

completion of age 85.

2. MAXIMISLIC LIFE (MONEY BACK PLAN):

This plan offers asset buildLIC opportunity by returnLIC

lump sum benefits at periodic intervals, along with providLIC life

risk cover durLIC the term of the policy without deductLIC any

amount from the sum assured.

Salient Features Cash bonus, which can be utilized both to accumulate and gain on

interest, or take it and spend, or utilize the accumulated amount to

pay back premiums.

Loan facility.

Guaranteed surrender value.

3. SAFAL JEEVAN (ENDOWMENT PLAN):

The unique feature of the safal jeevan endowment plan is

that it provides an opportunity to decide on the cover of your policy.

It gives you the option to choose from a convenient range of fixed

terms and premiums. The plan ensures an easy and hassle free

process, yet offerLIC you a comprehensive protection and savLICs

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proposition. Thus make it the simplest life insurance plan. Apart

from that it ensures.

Death benefit: sum assured with non-guaranteed bonuses, if any

payable on death of the life assured.

In-built accident cover: In case of death due to accident, an

additional benefit equal to the basic sum assured is payable.

Maturity benefit: sum assured with non-guaranteed bonuses, if

any, payable on maturity.

Mr. Koster said a recent product safal jeevan had been designed

specifically for the rural markets.

Salient Features

Surrender value

Surrender value is available after at least 3 full years

premiums are to be paid. Reduced paid up value

After 3 full years premiums are paid, and if policy lapses

due to non-payment of premium, the policy becomes paid-up.

Loan facility

You can avail loan of up to 90% of the surrender

value.

Available premium options:-

Yearly Half yearly Quarterly

Rs.2,000 Rs.1,000 Rs.500

Rs.2,500 Rs.1,250 Rs.625

Rs.3,000 Rs.1,500 Rs.750

Rs.3,500 Rs.1750 Rs.875

Rs.4000 Rs.2,000 Rs.1,000

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Rs.5,000 Rs.2,500 Rs.1,250

4. CREATLIC LIFE (CHILD PROTECTION PLAN):

Guaranteed Maturity Benefit (Payment In Case Of Death And At

Maturity)

Flexible Maturity Benefit Options

Built-In Waiver Of Premium Benefit

If you have children, you must have a

creatLIC life child protection plan. This plan ensures that your

childs future in secure in case of your untimely death. CreatLIC

life also created a financial asset for your child.

Salient Features

Rider benefit:

Term rider, accidental death rider, accidental death,disability and dismemberment and waiver of premiumsrider.

Loan benefit :

After payLIC a premium for three years, you will be

eligible for a loan.

Maturity benefit:

Your child can either receive a lump sum or receive theamount in 3 to 4 equal installments after the maturity date.

Tax benefits:

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Tax benefits under section 88 and section 10 are availableon all our life insurance plans and riders.

PRODUCT FEATURES:-1. ELIGIBILITY

Minimum entry age-18years

Maximum entry age-55years Maximum Maturity age-65years

PREMIUM PAYMENT TERM

Based Upon Your Current Age And The Life Cover Period, You

Can Choose To Pay Premium Between 10-25years.

PREMIUM PAYMENT OPTIONS:

Annual

Half yearly

Quarterly

Monthly

MINIMUM PREMIUM PAYABLE:

Annual - Rs.6,000/-

Half-yearly - Rs.3,000/-

Quarterly - Rs.1,500/-

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Monthly - Rs.750

5. HIGH LIFE PLUS (UNIT LINKED REGULARPREMIUM):-

It provides you with a life cover of your choice and also

enhances your investment opportunities to earn returns in line with

the market. In this policy the investment risk in investment

portfolio is borne by the policy holder.

Main features:-

Maturity Benefit: This plan matures on completion of the chosen

policy term.

Death benefit: On death before the policy maturity date, the sum

assured plus policy holders fund value will be payable.

Partial withdrawal benefit: This plan offers you the additional

flexibility of optLIC for partial withdrawals any number of times

after completion of three policy years, provided the policy holders

fund values after such withdrawal is equal to at least one and halfyears regular premiums. Partial withdrawals would not be allowed

in case the life assured is a minor till the attainment of age of

maturity.

Surrender benefit: You can surrender your policy anytime after

completion of the third policy year. You will receive the policy

holders fund value less the applicable surrender charges as statedbelow.

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Switch your fund: You have the flexibility to review the

performance of your unit linked funds periodically and switch

investments from one unit linked fund to another. Two switches

per policy year are offered free of switchLIC charges.

Settlements options: You can opt to receive your maturity benefit

in a sLICle lump.

ELIGIBILITY:

Minimum entry age :0 year (age last birthday)

Maximum entry age :70years

Maximum maturity age :75years

Minimum policy term :5years

Maximum policy term :25years

MINIMUM PREMIUM:

Yearly Rs.50,000/-

Half-yearly Rs.25,000/-

Quarterly Rs.15,000/-

Monthly Rs.6,000/-

6. LIFEPLUS PLAN (A SAVLIC SOLUTION):-

This plan simplifies the process of takLIC unit linked

insurance. You can choose a convenient policy term of 10, 15 or

20 years. It allows you to invest and manage your investments at

your own pace as per your risk profile.

MAIN FEATURES:-

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1. Maturity benefit: the policy matures on the completion of the

policy term chosen by the policy holder.

2. Death benefit: on death before the policy maturity date, the

prevailLIC at that time or the fund value.

3. Partial withdrawal benefit: the plan offers you the additional

flexilibility of optLIC for a partial withdrawal on completion of

5th policy year.

4. Surrender benefit: you can surrender your policy any time after

the third policy year. You will receive the fund value less the

applicable surrender charges.

5. Tax benefits: under the section 80c of the income tax act 1961 the

provisions are applicable to the policy holders.

Other features:

Eligibility:

Minimum entry age : 10years

Maximum entry age : 45years

Maximum maturity age : 65years

Premium payment terms : 10, 15 and

20years.

Policy term : 10, 15 and

20years

The charges:

The plan offers complete transparency with respect to expenses

charged to you. The charges are as follows:

a) Policy administration charges

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b) Premium allocation charges

c) Fund management charges

d) SwitchLIC charges

e) Surrender charges

f) Mortality charges

g) Miscellaneous charges

7. ONELIFE ( UNIT LINKED SLICLE PREMIUM):-

It is a plan that is much more than just insurance. A superlative

investment plan that gives you the unique option of makLIC one

sLICle lump sum payment and additional top-ups as per your

convenience.

Policy term:

The term of the policy is between 5 to 25 years.

Main features:-

1 Maturity benefit: this plan matures on the completion of the

chosen policy term. You will receive the balance amount

available in your individual policyholders account on the policy

maturity date.

2 Death benefit: the amount of death benefit depends upon the life

cover option chosen by you.

3 Partial surrender benefit: this plan you the additional flexibility of

optLIC for partial surrender any number of times after completion

of 5 policy years, provided the balance in the individual

policyholders account after such surrender is at least Rs.25,000.

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4 Surrender benefit: you can surrender your policy any time after

the first policy year. You will receive the balance amount

available in your individual policyholders account less applicable

surrender charges.

5 Switch your fund: you have the flexibility to review the

performance of your investment plan periodically and switch

investments from one plan to another.

Tax benefits:

Amounts paid by you are eligible for tax benefits as applicable

under income tax act 1961.

Other features:-

Eligibility:

Minimum Entry Age : 0 years (age last birthday) Maximum Entry Age : 70 years

Maximum Maturity Age : 75 years

Minimum Policy Term : 5 years

Maximum Policy Term : 25 years

8. LIC POSITIVE LIFE: ,

The policy highlights are flexible premium payLIC

options, no medical underwritLIC, flexible investment options,

systematic investment benefit and partial withdrawal process in

the life insurance.

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LIC Positive is targeted at the regular savLICs segment.

The plan is flexible so that it suits the profile of an individual

customer from the ages 0 to 50 years. It allows the customer to

enter the plan for as low of Rs. 834 per month. The convenient

policy terms of 10, 15 or 20 years allows one to match life goals

to the policy terms. There is flexibility of premium payLIC term

from a minimum of three years to the policy term.

The premiums can be invested in a choice of five fund

options Debt, Secure, Balanced, Growth or Equity, based on an

individuals risk appetite. DurLIC the policy term, the customer

has an option to switch between these funds, or redirect future

premiums into the available option.

The plan also offers liquidity when needed by allowLIC

one partial withdrawal each year after the fifth policy year. On

maturity the fund balance available is paid. The maturity proceeds

can also be distributed over a five year period.

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LIMITATIONS:

The scope of the project is related with only punjagutta branch

and not with other.

The project is related to low income and middle income

people.

There is not much sufficient time to explain about the various

plans.

Industry profile

ABOUT THE ORGANIZATION

Life Insurance in its modern form came to India from England in theyear

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

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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 foreignlife 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

tito 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 natioalism. the Swadeshi movement of

1905-1907 gavwe 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.

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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 premiumrate 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 to

176 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

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,

16 non-Indian

companies and 75 provident were operating in India at the time of

nationalization,

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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 bymeans of a comprehensive bill. The Parliament of India passed the

Life Insurance

Corporation Act on the 19th 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

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the year 1969-70, and it took another 10 years for LIC to cross

2000.00 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,

100

divisional offices, 7 zonal offices and the corporate office. LICs

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-lint

premium collection facility in selected cities. LICs 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 its

SATELLITE

SAMPARK offices. The satellite offices are smaller, leaner and

closer to the

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 theliberalized

scenario of

Indian insurance and is moving fast on a new growth trajectory

surpassing its own

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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 ahealthy growth rate of 16.67% over the corresponding period of

the previous year.

From then to now, LIC ha 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 insurance

businesses.

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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 aretaken over by the

central government and nationalized. LIC formed by an Act of

Parliament, viz. LIC

Act, 1956, with a capital contribution of Rs. 5 crore 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.

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 Training Centers. At the industry

level, along with the

Government and the GIC, it has helped establish the National

Insurance Academy. It

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presently transacts individual Life Insurance business, group

Insurance business, social

security schemes and Pensions, grants housing loans through its

subsidiary. And themarkets savings and Investment products through its mutual fund.

It pays off about Rs

6,000 crores annually to5.6 million policyholders

LIC OPERATES ALL OVER INDIA

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OBJECTIVES OF LIC

Spread Life Insurance widely and in particular to the rural

areas and to the

socially and economically backward classes with a view to

reaching

allinsurable persons in the country and providing them

adequate financial

cover against death at a reasonable cost.

Maximize mobilization of people savings by making

insurance-linked savings

adequately attractive.

Bear in mind, in the investment of funds, the primary

obligation to its

policyholders, whose money it holds in trust, 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

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moneys belong to the policyholders.

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 servicewith courtesy.

Promote amongst all agent and employees of the

corporation a sense of

participation, pride and job towards achievement of

Corporate objective.

MISSION/VISION

MissionExplore 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

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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 insuranceCompany 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. 5 crore 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

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the year 1850 in Calcutta by the British.

Chapter 3

Company profile

Company profile

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Type: Public limited company or Government-owned corporation

Founded: September 1, 1956

Headquarters: 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 10,00,000

Parent: NIL

Subsidiaries: LIC Housing Finance Limited, etc.

Website: http://www.licindia.com

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Products of LIC

LIC - Jeevan Anurag

Benefits

LICs 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.

AssuredBenefit

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 is 20

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.

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Death Benefit

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/grand parent.

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

Corporations 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

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(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 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

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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:

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

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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 40 years 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

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policy is not entitled to participate in the 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 yearsMaximum Policy term : 35 yearsMinimum 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

Premium

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ORGANISATION STRUCTURE OF LIC

ChairmanManaging Director

Executives Directors

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Chiefs

Zonal Managers

Regional Managers

Divisional Managers

100 Seniors Divisional Managers

Marketing Managers

Sales Managers

Senior Branch Managers (Head of theBranch)

Assistant Branch Managers Sells

Development Officers

Different Agent

PUBLIC RELATION DEPARTMENT

The Public Relation Department in LIC is divided into three majorcategories. Namely:

1. Communication Department2. Crisis Management Department3. Publicity Department

Chief Public Relation Officer

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PRO (Communication Dept.)

PRO (Crisis Management Dept.)

PRO (PublicityDept.)

CHAIRMAN OF LIC

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PUBLICRELATIONS

COMMUNICATION DEPARMENT

PUBLICITYDEPARMENT

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 :-

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1. PR represents whole organization.

2. Should know how to behave in a certain situation.

3. He is not a person, he is representative.

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.

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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.

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.

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In short, the communication Department PRO ensures that there is

no

communication gap between the company and the external

concernedbodies.

(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 Collarand the

White Collar.

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:-

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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 workshopshelp 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 insurancecompanies 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 theCommunication 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.

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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 to do

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To satisfy the consumers in lic they make

effective public relations and consumer

relations

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..

61


62/75

ANALYSIS OF THE QUESTIONNAIRE

1. Are you willLIC to take a policy with LIC?

Interpretation:As most of them have their own choice of taking policy in thereal world of competition in the market where LIC also plays arole of insurance sector, in my project survey where most ofthem have a good opinion of about 65% with LIC and the rest35% are with negative opinion.

CATEGORY Respondents

YES 65NO 35

62


63/75

Responden

Y E S , 6

NO, 3Y E S

NO

63


64/75

2 Do you have any policy?

LIC ICICI HDFC TATA

48 30 12 10

Interpretation:

Most of my findings out of 100 have a good relation in the LIC

with 48%, 30% are for ICICI, 12% are for HDFC, 10% have a

policy with TATA life insurance.

64

48

30

1210

0

10

20

30

40

50

60

LIC ICICI HDFC TATA


65/75

3.What type of benefit would you like to prevail?

Interpretation:

Out of total 100 policyholders, where most of them have like

their benefits in various categories, 52% are interested in death

process, 26% are interested in maturity process, 12% are for

partial, and 10% are for surrender process.

52

26

12 10

0

10

20

30

40

50

60

DEA

TH

MATUR

ITY

PARTIAL

SURRE

NDE

R

Series1

DEATH MATURITY PARTIAL SURRENDER

52 26 12 10

65


66/75

4 What type of benefit you like in other insurance companies?

HEALTH EARLY GROWTH GOLD

51 28 19 2

Interpretation:

Out of total 100, most of them have their own dislike and

liking about other insurance companies, where 51% are

interested into health plans, 28% are interested into early

protection plans, 19% are interested in easy growth plans, and

2% are only interested in gold plans of the insurance

companies.

66

51

28

19

2

0

10

20

30

40

50

60

HEALTH EARLY GROWTH GOLD


67/75

5. Do you want to know the plans of LIC life insurance?

YES 41

NO 59

Interpratation:

Into my total strength of 100 where 41% has agreed for LIC

plans and rest 59% of them have NO interest about LIC.

67

41

59

YES

NO


68/75

6 What type of plans do you wish to take with LIC?

Safal jeevan retirement childprotection Freedom

40 30 20 10

Interpretation:

out of total 100 in the project most of the people who wish

to go for the plans of LIC are, 40% are opted for safal

jeevan, 30% opted for retirement plan, 20% for child

protection plan, 10% for freedom plan.

68

40

30

20

10

0

5

10

15

20

25

30

35

40

45

safal jeevan retirement child protection freedom


69/75

7.What type of plans do you like with other insurance

companies?

wealth investment education Marriage

43 36 11 10

Interpretation:

Out of total 100 policyholders, 43% are for wealth plans,

36% are applied for investment, 11% are for education, and

10% are applied for marriage.

69

43

36

11 10

0

5

10

15

20

25

30

35

40

45

50

wealth and health investment education marriage


70/75

8 What are plans you are looking to take in LIC life

insurance?

Retirement

plan

CreatLIC life

plan

MaximisLIC

plan

Child

protection

49 19 18 14

Interpretation:

out of 100 persons, 49% are willLIC to go for retirements, 19%

are for creatLIC life, 18% are for maximisLIC and 14% are

applied for child protection.

49

19 1814

0

10

20

30

40

50

1

Retirement plan

Creating life plan

Maximising plan

Child protection

70


71/75

STUDY OF PEOPLE AT HYDERABAD IN KUSHAIGUDA

AREA

Name: Age:

Sex: D.O.B:

1.Do you have any policy?

A. If yes ( ) B. If no ( )

2. Are you willLIC to take a policy with LIC?

A. If yes ( ) B. If no ( )

3. What type of benefit would you like to prevail?

A .Death B. Maturity

C. Partial D. Surrender

4. What type of benefit you like in other insurance

companies?

A. health benefit B. early age benefitC. growth benefit D. gold benefit

5. Do you want to know the plans of LIC life insurance?

A. Yes B. No

6. What type of plans do you wish to take with LIC?

A. safal jeevan B. retirement benefit

C. child protection plan D. freedom plan

7. What type of plans do you like with other insurance

companies?

A. wealth and health plan B. investment plan

C. education plan D. marriage plan

71


72/75

8. What are plans you are looking to take in LIC life

insurance?

A. retirement benefit plan B. creatLIC life

C. maximizLIC plan D. child protection

72


73/75

SUMMARY AND CONCLUSIONS:

- the study of my overall data relates with the different

techniques,methods,plans which are mainly benefit to the policy

holders. As my overall study gives a brief explanation of the various

plans followed by the LIC life insurance. My study mainly summarizes

about the various marketLIC techniques used by the LIC life insurance

to attarct the new type of customers where the competition prevails in

the market.

At last I briefly conclude that LIC has very

much potential abilities to prevail in the market.

73


74/75

SUGGESTIONS

1. As more people are inclined towards takLIC LIC policy, the

market share should be captured by offerLIC them more value

initially.

2. Customers are more interested in posthumous benefits the

procedures and settlements in cases of eventualities should be as

simple as possible, even door delivery of the settlement cheques

can be thought of if viable.

3. Health and pharma sectors has got maximum opportunities so tie

up with corporate hospitals can be throught of.

4. Homework is to be done in freedom plan and it should be

made more attractive.

5. LIC should come up with new Wealth Plans in line with

copetitors as it got more takers in the market.

6. Child protection plan is not upto the mark so the policy is to be

improved and should be made more attractive.

74


75/75

BIBILOGRAPHY:

REFERED MARKET LIC BOOKS:

1. By Philip Kotler

2. By G.C.Beri

INTERNET SITES:

1. http://en.wikipedia.org/wiki/MarketLIC#Introduction

2. http://www.thetimes100.co.uk/theory/theory--marketLIC-

techniques--186.php

3. http://www.erfurtmarketLIC.co.uk/

4. http://www.LIC life.com

REFFERED JOURNALS:

1. Brochures Of LIC life insurance.

2. Business World

3. Economic Times (brand equity)

4. 4ps MarketLIC
http://en.wikipedia.org/wiki/Marketing#Introductionhttp://www.thetimes100.co.uk/theory/theory--marketing-techniques--186.phphttp://www.thetimes100.co.uk/theory/theory--marketing-techniques--186.phphttp://www.erfurtmarketing.co.uk/http://www.ingvysyalife.com/http://www.ingvysyalife.com/http://en.wikipedia.org/wiki/Marketing#Introductionhttp://www.thetimes100.co.uk/theory/theory--marketing-techniques--186.phphttp://www.thetimes100.co.uk/theory/theory--marketing-techniques--186.phphttp://www.erfurtmarketing.co.uk/http://www.ingvysyalife.com/

marketing techniques of lic of indiaghvtrfgchj

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