mpr on lic

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MAJOR PROJECT STUDY REPORTON

"CUSTOMER SATISFACTION ON THE SERVICES PROVIDED BY LIFE INSURANCE CORPORATION "

SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENTS

FOR THE AWARD OF THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION (BBA)

Under te !#er$%!%&n &'

S%tted *

Dr+ S#r%*, C&d,r*

A-,* Pr,.,!

Re,der BBA (B/I)

MAHARAJA SURAJMAL INSTITUTE

(A''%0%,ted t& Gr G&%nd S%n1 Indr,#r,!t, Un%$er!%t*)

Re2&1n%3ed * UGC U4S5 (F) C67 JANA8 PURI9 NEW DELHI6::;; 6 5;:?

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CERTIFICATE

This is to certify that this Major Project Report submitted by Mr. Ajay Prakash, enrollment

number 0021!01"1#, to Maharaja $urajmal %nstitute, &uru &obind $in'h %ndraprastha

(ni)ersity *&&$%P(+, e- elhi in the fulfillment of the re/uirements for the a-ardin' of the

de'ree of achelor of usiness Administration, is an authentic record of -ork carried out by him

under my super)ision. The contents of this report, neither in full nor in part*s+ ha)e been

submitted in any form to any other institute or uni)ersity for the a-ard of any other de'ree or

diploma.

Pr&-e2t G%de6

r. $upriya houdhary

Reader

epartment of usiness Administration

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AC8NOWLEDGEMENT

% -ould like to epress deepest appreciation to my mentor and 'uide r. $upriya houdhary of

Maharaja $urajmal %nstitute, -ho has the attitude and substance of a 'enius, she continually and

con)incin'ly con)eyed a spirit of ad)enture in re'ard to research and analysis. % o-e a debt of

'ratitude to her as -ithout her 'uidance and persistent help, this project report -ould not ha)e

been possible. % am etremely 'rateful and indebted to her for her epert, )aluable and

eemplary 'uidance etended to me.

% take this opportunity to ackno-led'e my sincere thanks to all the faculty members of

epartment of usiness Administration, Maharaja $urajmal %nstitute, for their help and

encoura'ement. % also thank my parents for their unceasin' support and encoura'ement.

% place on record, my profound 'ratitude to the irector of the institute for pro)idin' me -ith all

the necessary facilities. % also -ish to epress my sense of thankfulness to one and all -ho,

directly or indirectly, ha)e lent their helpin' hand in this )enture.

Ajay Prakash

A *3%+ 4th $emester

0021!01"1#

atch5 201#62014

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TABLE OF CONTENTS

C,#ter N&+ C,#ter N,e P,1e

hapter 1 %ntroduction

• %ntroduction

• 7bjecti)es

• Research Methodolo'y

• 8imitations of $tudy

hapter 2 Profile of the or'ani9ation

•

ompany:s Profile

hapter # onceptual ;rame-ork

• %ndia:s 8ife %nsurance %ndustry

hapter Analysis and %nterpretation of ata

• Analysis of ata

• %nterpretation of ata

hapter < onclusions and Recommendations

• onclusions

• Recommendations = $u''estions

iblio'raphy

Anneure

• >uestionnaire

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CHAPTER@ :

(INTRODUCTION)

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A. %TR7(T%76

ORIGIN OF INSURANCE5

Almost ,


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%nsurance can be defined as a le'al contract bet-een t-o parties -hereby one party called

%nsurer undertakes to pay a fied amount of money on the happenin' of a particular e)ent, -hich

may be certain or uncertain. The other party called %nsured or %nsurant pays in echan'e a fiedsum kno-n as premium. The insurer and the insurant are also kno-n as Assurer or (nder-riter

and Assurant, respecti)ely. The document -hich embodies the contract is called the policy.

TYPES OF INSURANCE CONTRACT@

• 8ife insurance

• &eneral insurance

This Major Project Report co)ers up the facts related to customer:s satisfaction on the ser)ices

pro)ided by 8%. The introduction about and profile of 8ife %nsurance orporation ha)e

described in chapter 2.

.7bjecti)e of study

The main objecti)e of this study is to carry on brief study on Customer satisfaction sur)ey on

insurance products of 8%

7ther objecti)es of this project are as follo-s5

To identify the insurance needs of the %ndian population -ith respect to their emotional,

physical and financial conditions.

omparati)e study of )arious insurance players in the market

To study the )aried reasons of a)ailin' life insurance plans

To clearly understand the rationale behind the in)estment in policies of 8% and pri)ate

sector insurance companies

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To test the a-areness of customers on )arious aspects of life insurance policies offered by

8% and other pri)ate sector insurance companies and find -hether there is any relation

bet-een them.

The prime objecti)e of the study is to find out the le)el of satisfaction of a customer

*policy holders or beneficiary+ so far as the settlement of claims.

To find out the procedure of claim policy holder or the beneficiary

. R@$@AR? M@T?7787&D6

The research of=for data, information and facts and fi'ures for this project report can be done

throu'h either of the t-o follo-in' sources of data collection, namely6

• Primary $ource5 The primary source of data collection is that source in -hich field

-ork is carried out to collect data, facts, fi'ures, numbers, etc.

ata is either not present from else-here, or not authentic and 'enuine, or not up6to6date,etc. hile collectin' primary data, it is necessary to ensure that errors and biasedness are

eliminated. %n this report, a /uestionnaire has been used to 'au'e customer response from

a sample si9e of 100 customers.

• $econdary $ource5 %n this source of data collection the data and information is

collected from CotherE sources, i.e., data -hich has already been collected and -orked

upon by some other source is referred, checked for authenticity and 'enuineness, and

then used for other different researches. These sources could be journals, ma'a9ines,

scientific research papers, 'o)t. or'ani9ations like $$7, company and ne- a'ency

-ebsites, etc.

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. 8%M%TAT%7$ 7; $T(D6

Althou'h there are a fe- limitations to enlist but e)ery research -ork carried out has to face

some limitations.

BUSY SCHEDULE OF CONCERNED EECUTIES5

The concerned eecuti)es -ere ha)in' )ery busy schedule because of -hich they

-ere reluctant to 'i)e appointment.

TIME@

The time duration of the study for this project could not pro)ide ample opportunity to

study about the customers in hi'h detail.

CONFIDENTIAL INFORMATION@

The company on account of confidential report has not disclosed some fi'ures. %n

some cases separate accounts of di)ision are not maintained leadin' to restrictions in

study.

AREA@

Area of study chosen -as too lar'e. The area chosen -as Fanakpuri. earby areas and

other areas of elhi are 'reater than = almost e/ual to Fanakpuri.

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OBJECTIE NATURE@

The sur)ey to collect data -as completely objecti)e, spontaneous and completely

based on the )ie-s of the respondents *i.e., customers+. ;ace6to6face interaction -as

carried out. $ubjecti)e nature of this report -as out of /uestion.

SAMPLE SIE@

The sample si9e chosen *i.e., 100+ can:t be used to 'enerali9e the findin's o)er entire

%ndirapuram re'ion or elhi R. Population of %ndirapuram is B00, 00 -hich means

there may be hundreds of customers of AG%GA %ndia in the same area. Thus, 100 may

not be a sufficient sample si9e. ut in )ie- of this Major Project Report:s study

period, 100 is supposedly sufficient.

CHOICE OF LOCATION@

The reason for choosin' R as the location for sur)ey because % stay there and my

relati)e is 8% a'ent. $o % done my sur)ey -ith him.

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CHAPTER 5

(PROFILE OF THEORGANIATION)

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C&#,n* #r&'%0e

T*#e@ P0%2 0%%ted 2&#,n* &r G&$ernent6&ned C&r#&r,t%&n

F&nded@ Se#teer :9 :


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L%'e %n!r,n2e C&r#&r,t%&n &' Ind%, (LIC)

The 8ife insurance orporation -as established about years a'o -ith a )ie- to

pro)ide an insurance co)er a'ainst )arious risks in life. A monolith then, the

corporation, enjoyed a monopoly status and become synonymous -ith life

insurance. %ts main asset is its staff stren'th of 1.2 lakhs employed and 2,0"

branches and o)er si6lakhs a'ency force.

8% has hundred di)isional offices and has established etensi)e trainin' facility at

all le)els. At the ape, is the Mana'ement e)elopment %nstitute, se)en 9onal

trainin' entre and #< sales Trainin' enters. At the industry le)el, alon' -ith the

&o)ernment and the &%, it has helped establish the ational %nsurance Academy.%t presently transacts indi)idual 8ife %nsurance business, 'roup %nsurance business,

social security schemes and Pensions, 'rants housin' loans throu'h its subsidiary.

And the markets sa)in's and %n)estment products throu'h its mutual fund. %t pays

off about Rs 4,000 crores annually to


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LIC OPERATES ALL OVER INDIA

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OBJECTIES OF LIC

$pread 8ife %nsurance -idely and in particular to the rural areas and to

the socially and economically back-ard classes -ith a )ie- to reachin' all

insurable persons in the country and pro)idin' them ade/uate financial

co)er a'ainst death at a reasonable cost.

Maimi9e mobili9ation of people: sa)in's by makin' insurance6linked

sa)in's ade/uately attracti)e.

ear in mind, in the in)estment of funds, the primary obli'ation to its

Policyholders, -hose money it holds in trust, -ithout losin' si'ht of the

%nterest of the community as a -holeH the funds to be deployed to the best

ad)anta'e of the in)estors as -ell as the community as a -hole, keepin' in

)ie- national priorities and obli'ations of attracti)e return.

onduct business -ith utmost economy and -ith the full reali9ation that

moneys belon' to the policyholders.

Act as trustees of the insured public in their indi)idual and collecti)e

capacities.

Meet the )arious life insurance needs of the community that -ould arise

in the chan'in' social and economic en)ironment.

%n)ol)e all people -orkin' in the orporation to the best of their

capability in furtherin' the interests of the insured public by pro)idin'

efficient ser)ice -ith courtesy.

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Promote amon'st all a'ent and employees of the corporation a sense of

participation, pride and job to-ards achie)ement of corporate objecti)e.

MISSION4ISION

M%!!%&n

C@plore and enhance the /uality of life of people throu'h financial security by

pro)idin' products and ser)ices of aspired attributes -ith competiti)e returns, and

by renderin' resources for economic de)elopment.E

%!%&n

CA trans6nationally competiti)e financial con'lomerate of si'nificance to societies

and Pride of %ndia.E

8% of %ndia is the one and only public sector life insurance ompany in %ndia.

$ome of the important milestones in the life insurance business in %ndia are5

1"1"5 7riental 8ife %nsurance ompany, the first life insurance company on %ndian

soil started functionin'.

1"B05 ombay Mutual 8ife Assurance $ociety, the first %ndian life insurance

company started its business.

1!125 The %ndian 8ife Assurance ompanies Act enacted as the first statute to

re'ulate the life insurance business.

1!2"5 The %ndian %nsurance ompanies Act enacted to enable the 'o)ernment to

collect statistical information about both life and non6life insurance businesses.

1!#"5 @arlier le'islation consolidated and amended to by the %nsurance Act -ith

the objecti)e of protectin' the interests of the insurin' public.

1!


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Act, 1!


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1Bth, 1"th, 1!th year and 0I of the $um Assured alon' -ith the re)ersionary

bonuses and the terminal bonus, if any, at the end of the 20th year.

De,t Bene'%t:

Payment of an amount e/ual to $um Assured under the basic plan immediately on

the death of the life assured.

LIC 6 Jee,n 8%!&re

Pr&d2t !,r*@

This is an @ndo-ment Assurance Plan a)ailable for children of less than 12 years

of a'e. The policy may be purchased by any of the parent='randparent.

C&en2eent &' r%!. 2&$er@

The risk commences either after 2 years from the date of commencement of policy

or from the policy anni)ersary immediately follo-in' the completion of B years of

a'e of child, -hiche)er is later.

Pre%!@

Premiums are payable yearly, half6yearly, /uarterly or monthly throu'hout theterm of the policy or till earlier death of child.

B&n!e!@

This is a -ith6profits plan and participates in the profits of the orporation:s life

insurance business. %t 'ets a share of the profits in the form of bonuses. $imple

Re)ersionary onuses are declared per thousand $um Assured annually at the end

of each financial year. 7nce declared, they form part of the 'uaranteed benefits of

the plan. A ;inal *Additional+ onus may also be payable pro)ided policy has run

for certain minimum period.

LIC C%0d! C,reer P0,n

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Intr&d2t%&n@

This plan is specially desi'ned to meet the increasin' educational and other needs

of 'ro-in' children. %t pro)ides the risk co)er on the life of child not only durin'

the policy term but also durin' the etended term *i.e. B years after the epiry of

policy term+. A number of $ur)i)al benefits are payable on sur)i)in' by the life

assured to the end of the specified durations.

Options:

Dou may choose $um Assured *$.A.+, Maturity A'e, Policy Term, Mode of

Premium payment and Premium ai)er enefit.

Payment o P!emi"m:

Dou may pay the premiums re'ularly at yearly, half6yearly, /uarterly or throu'h

$alary deductions o)er the term of policy. Premiums may be paid either for 4

years or up to < years before the policy term.

LIC 6 Jee$,n C,*,

Pr&d2t !,r*@

This is an @ndo-ment Assurance plan that pro)ides financial protection a'ainst

death throu'hout the term of the plan. esides payment of $um Assured

immediately on death, one6fourth of $um Assured is payable at the end of each of

last four years of policy term -hether the life assured dies or sur)i)es the term of

the policy.

P!emi"ms:

Premiums are payable yearly, half6yearly, /uarterly, monthly or throu'h salary

deductions as opted by you throu'hout the term of the policy or till the earlier

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death.

LIC 6 C%0d Ftre P0,n

Intr&d2t%&n@

This plan is specially desi'ned to meet the increasin' educational, marria'e and

other needs of 'ro-in' children. %t pro)ides the risk co)er on the life of child not

only durin' the policy term but also durin' the etended term *i.e. B years after the

epiry of policy term+. A number of $ur)i)al benefits are payable on sur)i)in' by

the life assured to the end of the specified durations.

Options:

Dou may choose $um Assured *$.A.+, Maturity A'e, Policy Term, Mode of

Premium payment and Premium ai)er enefit.

Payment o P!emi"ms:Dou may pay the premiums re'ularly at yearly, half6yearly, /uarterly or throu'h

$alary deductions o)er the term of policy. Premiums may be paid either for 4

years or up to < years before the policy term.

LIC 6 Jee$,n Sree

Pr&d2t !,r*@This is an @ndo-ment Assurance plan offerin' the choice of many con)enient

premium6payin' terms. %t pro)ides financial protection a'ainst death throu'hout

the term of plan -ith the payment of maturity amount on sur)i)al to the end of the

policy term.

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P!emi"ms:

Premiums are payable yearly, half6yearly, /uarterly, monthly or throu'h $alary

deductions, as opted by you, throu'hout the premium payin' term or till earlier

death. Alternati)ely premium may be paid in one lump sum.

#"a!antee$ A$$itions@

The policy pro)ides for the &uaranteed Additions at the rate of Rs.


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LIC % Am"&ya 'ee(an: On Deat) $"!in* t)e Te!m o t)e Po&i+y: S"m Ass"!e$

On Mat"!ity: Ni&

RESTRICTIVE CONDITIONS

OR#ANISATION STRUCTURE OF LIC

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Minim"m a*e at ent!y : ,- yea!s .+omp&ete$/

Ma0im"m a*e at ent!y : 12 yea!s .nea!est 3i!t)$ay/

Ma0im"m a*e at mat"!ity : 42 yea!s .nea!est 3i!t)$ay/

Minim"m Po&i+y Te!m : 5 yea!s

Ma0im"m Po&i+y te!m : 65 yea!s

Minim"m S"m Ass"!e$ : Rs7859229222;

Ma0im"m S"m Ass"!e$ : No Uppe! Limit

.Po&i+ies


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hairman

Mana'in' irector

@ecuti)es irectors

hiefs

Jonal Mana'ers

Re'ional Mana'ers

i)isional Mana'ers

100 $eniors i)isional Mana'ers

Marketin' Mana'ers

$ales Mana'ers

$enior ranch Mana'ers *?ead of the ranch+

Assistant ranch Mana'ers $ells

e)elopment 7fficers

ifferent A'ent

PUBLIC RELATION DEPARTMENT

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The Public Relation epartment in 8% is di)ided into three major cate'ories. amely5

1. ommunication epartment2. risis Mana'ement epartment#. Publicity epartment

hief Public Relation 7fficer

PR7 *ommunication ept.+

PR7 *risis Mana'ement ept.+

PR7 *Publicity ept.+

?%@; P(8% R@8AT%7 7;;%@R

The hief Public Relation 7fficer of 8% is Mr. M. G. Kulkarni. ?e heads the

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PR department. The abo)e three committees are under the PR7. The PR7 is responsible for the

o)erall functionin' of the PR department. ?e has to monitor the smooth functionin' of the three

departments.

R@$P7$%%8%T%@$ 7; ?%@; P(8% R@8AT%7 7;;%@R56

1. PR represents -hole or'ani9ation.

2. $hould kno- ho- to beha)e in a certain situation.

#. ?e is not a person, he is representati)e.

. $hould kno- ho- to create enthusiasm.


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1. Arran'in' press conferences, press releases and is in constant contact -ith the media.

2. ?e is also responsible for monitorin' the o)erseas communications.

#. The ommunication epartment PR7 has to make arran'ements for the 'uests and their

o)erall honors. The con)ersations -ith the 'uests are directly done by the ommunication

epartment PR7.

. The PR7 from this department should al-ays keep a close eye on the latest happenin's in the

market. Any social issue at any area is a ne-s to be -orked out for him.


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• ?e also has to kno- the issues 'oin' -ithin the other departments so that these issues are

sol)ed before they create crisis.

The strate'y used by the PR here for crisis mana'ement is56

Cash the utensil before ha)in' food in it.E

Thus all the employees ri'ht from the day of joinin' are kept in close contact -ith the risis

Mana'ement ept. And re'ular -orkshops help to restrict cases like orruption. ith a

company so closely associated -ith the 'o)ernment, restrictin' such practices is )ery difficult

task.

P(8%%TD @PARTM@T

The PR7 of the publicity epartment is an @ternal PR.

This department -as formed due to the fall of sales in the 1!!!. This fall -as due to the

emer'ence of the forei'n insurance companies and their ad)ertisin' strate'ies. %nitially, the ads

sho-n by 8% al-ays said Cno -orry e)en after deathE. All the ads portrayed death. The other

insurance companies came up -ith the idea that insurance is for happy life. Thus the sales of 8%

-ent do-n as people liked the idea of 8ife more than eath.

?ence a separate publicity department -as formed -hich -orked only for publicity strate'ies.

%nitially it -as looked up by the ommunication epartment. Today the publicity department

PR7 has to see to it that all the ads runnin' are creatin' effect. The PR7 is the one -ho alon'

-ith the Marketin' department looks after the strate'ies for publicity. ?e is also to carry out

)arious campai'ns.

The )ery recent campai'n is kno-n as CJinda'i @pressE. The Jinda'i @press is a term that has

been associated to the life of 8%. Fust as humans celebrate their


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CHAPTER >

(CONCEPTUAL FRAMEWOR8)

INDIAS LIFE INSURANCE INDUSTRY@

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LIFE INSURANCE6

8ife insurance is a contract for payment of money to the person assured *or to the person entitled

to recei)e the same+ on the occurrence of an e)ent insured a'ainst.

(sually the contract pro)ides for

Payment of an amount may be on the date of maturity or at specified periodic inter)als or after

death, if it occurs earlier.

Periodical payment of insurance premium can be done by the assured to the corporation -ho

pro)ides the insurance.

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INDIA’S INSURANCE INDUSTRY

LIFE INSURANCE NON-LIFE OR GENERAL

INSURANCE

PUBLIC SECTOR

(4

PRI!ATE

SECTOR (9

PRI!ATE

SECTOR (12

PUBLIC SECTOR

(1


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GENERAL INSURANCE6

&eneral %nsurance is similar to 8ife %nsurance in many -ays -here protection is sou'ht a'ainst a

risky e)ent. ?ealth and 8ife are co)ered up under 8ife %nsurance, but &eneral %nsurance co)ers

the follo-in' products5

• FIRE INSURANCE@ ;ire %nsurance is a comprehensi)e policy -hich co)ers loss on

account of fire, earth/uake, riots, floods, strikes, and malicious intent. %t can be taken

only by the o-ner of the premises to be insured.

• MOTOR INSURANCE@ %n motor insurance, the rates -ere re)ised. (p-ards t-ice,

once in 1!"2 and then in 1!!0 as the hi'h cost of repairs coupled -ith third party claimshad ad)ersely affect the insured loss ratio. Motor insurance is mandatory leadin' to 'ood

amount of premium collection but it is not bein' fancied upon as it could lead to liti'ation

problem.

• MARINE CARGO INSURANCE@ This co)ers 5

a. ar'o in Transit.

b. ar'o eclaration policy.

%t includes insurance of Marine ?ull %nsurance %nland Gessels, 7cean 'oin' Gessels,

fishin' and scalin' )essels, frei'ht at risk, construction of ships, )oya'e insurance of

)arious )essels, ship breakin' insurance, oil and ener'y in respect of on short and off

short risks, includin' construction risk.

8ife %nsurance is a fast 'ro-in' sector in India since 2000 as &o)ernment allo-ed Pri)ate

players and ;% up to 24I *and recently in 2016201< abinet appro)ed a proposal to increase it

to !I+. 8ife %nsurance in %ndia -as nationali9ed by incorporatin' 8ife %nsurance orporation

*8%+ in 1!


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hile the committee submitted its report in 1!!, it took another si years before the enablin'

le'islation -as passed in the year 2000, le'islation amendin' the %nsurance Act of 1!#" and

le'islatin' the Insurance Regulatory and Development Authority Act of 2000. The same year the

ne-ly appointed insurance re'ulator 6 %nsurance Re'ulatory and e)elopment Authority IRDA N

started issuin' licenses to pri)ate life insurers. All life insurance companies in %ndia ha)e to

comply -ith the strict re'ulations laid out by %nsurance Re'ulatory and e)elopment Authority

of %ndia *%RA%+.

%nsurance penetration of any sort in %ndia is just around 20I as of May 201


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7+ Un%t6L%n.ed In$e!tent P&0%2%e! (ULIP!)@(nit linked insurance policies a'ain belon' to the insurance6cum6in)estment cate'ory -here one

'ets to enjoy the benefits of both insurance and in)estment. hile a part of the monthly premium

pay6out 'oes to-ards the insurance co)er, the remainin' money is in)ested in )arious types of

funds that in)est in debt and e/uity instruments. (8%P plans are more or less similar in

comparison to mutual funds ecept for the difference that (8%Ps offer the additional benefit of

insurance.


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WHY DOES ONE NEED LIFE INSURANCE

8ife insurance is desi'ned to protect the insured and his=her family a'ainst financial uncertainties

that may result due to unfortunate demise or illness. %t can also be )ie-ed as a comprehensi)e

financial instrument6 as a part of financial plannin' offerin' sa)in's 3 in)estment facilities

alon' -ith co)er a'ainst financial loss. y choosin' the ri'ht policy as per needs i.e. customi9ed

solutions, insured -ill be able to plan for a secure future for himself and his lo)ed ones.

BENEFITS TO INSURANCE POLICY HOLDER 6

(:) T, Bene'%t!@

Relief in %ncome ta is a)ailable for amount paid by -ay of premium for life insurance.

%n)estment /ualifyin' for rebate )i9. insurance premium, premium paid to-ard annuity

plans for life insurance are specified under section ""*2+ of the income ta Act.

(5) S,'et*@

%n 8ife %nsurance, on death, the full sum assured is payable *-ith bonuses -here)er

applicable+ -hereas in other sa)in' scheme, only the amount *sa)ed -ith interest+ is

payable.

(>) L%%d%t*@

8oans can be raised on sole security of the policy -hich has ac/uired a paid6up )alue.

esides, a 8ife %nsurance policy is also 'enerally accepted as security for e)en a

commercial loan= housin' loan.

(7) A%d t& Tr%'t@

8ife %nsurance encoura'es Othrift:. 8on' term sa)in' can be made in a relati)ely painless

manner because of Oeasy instalment facility: *Premium can be made throu'h monthly,

/uarterly, half6 yearly or yearly instalment+. The $alary $a)in' $cheme, popularly kno-n

as $$$ pro)ide a con)enient method if payin' premium each month throu'h deduction

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from one:s salary. The $alary $a)in' $cheme can be introduced in an institution of

establishment subject to specified terms and condition.

(


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O$er$%e &' te L%'e In!r,n2e Ind!tr*! !%t,t%&n %n Ind%,n

M,r.et@

%ndia:s 8ife %nsurance %ndustry has been 'ro-in' rapidly as one of the fastest sector in %ndian

@conomy. %t presents a 'reat economic, financial, and risk6co)erin' opportunity to any company

-illin' to enter this market. ut the competition is )ery stiff and earnin' profits is )ery difficult.

8% or 8ife %nsurance orporation of %ndia dominates the market -ith around B#I market share

in its corner. That implies that only 2BI market share is -ithin the 'rasp of other life insurance

companies in %ndia. %t took %% ;ederal 8ife %nsurance more than 4 years to come into

profitability situation.

Recent de)elopments in this %ndian 8ife %nsurance %ndustry ha)e been6

• Pr,d,n M,tr% Jee$,n J*&t% B%, Y&-,n, (PMJJBY+ 6 It is a &o)ernment of %ndia6

backed Life insurance scheme in %ndia. %t -as ori'inally mentioned in the 2015 Budget speech by ;inance Minister Arun aitley in ;ebruary 201


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• L%!t%n1 &' %n!r,n2e '%r! t& e2&e , re,0%t* 6 8istin' of insurance companies in the

country -ill soon be a reality, said the panelists at the Business *tandard Insurance Round

+a,le held on 1Bth March 2014. A lot of epectations ha)e been 'enerated on if and -hen

8ife %nsurance orporation of %ndia *8%+ -ould list. hile 8%s -ipin Anand said that this

-as a 'o)ernment decision and there is no de)elopment on this front as of no-, he added that

the scrutiny that 8% faces as a public sector insurer is much hi'her than some of the listed

entities.

hile e- %ndia Assurances $rini)asan said listin' -ould help impro)e the profile and

ima'e of the industry, Anand eplained that e)en after 1< years of pri)ate sector insurers,

8% continues to be the dominant player in the market and its ima'e amon' customers

remains the best.

• IRDA ,! ,de , ,rn%n1 t& %n!rer! tere %00 e n& ,##r&$,0 '&r ne #r&d2t! %'

tere %! n& ,2t,r*6 The %nsurance Re'ulatory and e)elopment Authority of %ndia *%RA%+

has ti'htened norms relatin' to Appointed Actuaries *AA+ in insurance companies. %f there is

no appointed actuary, the re'ulator -ill not appro)e ne- products. C%f there is no appointed

actuary for a considerable period of time, say, more than one year, the companies -ill not be

allo-ed to transact ne- business,:: Pournima &upte, Member *Actuary+, %RA%, said in a

circular sent to the insurers.

Actuaries play the crucial role of maintainin' sol)ency position of insurance companies.

7ther aspects of the insurance business, such as ne- product appro)al, also re/uire inputs for certification from actuaries. To increase the supply of actuaries for the insurance industry, the

%RA% has been encoura'in' youn' actuaries to take up position of AA if they can be

mentored by an eperienced actuary.

C?o-e)er, currently it appears that the mentorin' may not be happenin' as en)isa'ed,:: the

member said. ;or ensurin' uniformity in appointin' mentors as -ell as to ensure that the

companies and the appointed actuaries 'et full benefit of kno-led'e and epertise of the

mentor, %RA% has put in place a set of 'uidelines.

• E6C&er2e %nd!tr* ,nd %n!r,n2e #&0%2* !,0e6 %n the mid6201


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akshi, @7, %%% Prudential 8ife %nsurance ompany 8td., and Tapen $in'hel, @7,

ajaj Allian9 &eneral %nsurance ompany 8imited.

These captains -ill identify opportunities of e6commerce in insurance sector, recommend

technolo'ical solutions for e6commerce, su''est re'ulatory and other facilitation measures

for the 'ro-th of e6commerce and syner'ise -ith i'ital %ndia initiati)es of the &o)ernment

of %ndia. *;AT5 8ess than


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%nsurance $ector5

Meetin' the needs of the customer is the underlyin' rationale for the eistence of

community ser)ice or'ani9ations. ustomers ha)e a ri'ht to /uality ser)ices that

deli)er outcomes.

S 7r'ani9ations that stri)e beyond minimum standards and eceed the epectations

of their customers are likely to be leaders in their sector.

S ustomers are reco'ni9ed as key partners in shapin' ser)ice de)elopment and

assessin' /uality of ser)ice deli)ery.

The process for measurin' customer satisfaction and obtainin' feedback on

or'ani9ational performance are )aluable tools for /uality and continuous ser)ice

impro)ement. ustomer satisfaction, a sine buss term, is a measure of ho-

products and ser)ices supplied by a company meet or surpass customer

epectation. %t is seen as a key performance indicator -ithin business and is part of

the four of a alanced $corecard.

%n a competiti)e marketplace -here businesses compete for customers, customer

satisfaction is seen as a key differentiator and increasin'ly has become a key

element of business strate'y.

There is a substantial body of empirical literature that establishes the benefits of

customer satisfaction for firms.

7r'ani9ations need to retain eistin' customers -hile tar'etin' non6customersHMeasurin' customer satisfaction pro)ides an indication of ho- successful the

or'ani9ation is at pro)idin' products and=or ser)ices to the marketplace.

38

http://en.wikipedia.org/wiki/Technical_termhttp://en.wikipedia.org/wiki/Balanced_Scorecardhttp://en.wikipedia.org/wiki/Technical_termhttp://en.wikipedia.org/wiki/Balanced_Scorecard


39/64

ustomer satisfaction is an abstract concept and the actual manifestation of the

state of satisfaction -ill )ary from person to person and product=ser)ice to

product=ser)ice. The state of satisfaction depends on a number of both

psycholo'ical and physical )ariables -hich correlate -ith satisfaction beha)iors

such as return and recommend rate. The le)el of satisfaction can also )ary

dependin' on other factors the customer, such as other products a'ainst -hich the

customer can compare the or'ani9ations products.

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C!t&er S,t%!',2t%&n %n K Ste#! %n LIC

%ts a -ell6kno-n fact that no business can eist -ithout customers. %n the businessof ebsite desi'n, its important to -ork closely -ith your customers to make surethe site or system you create for them is as close to their re/uirements as you canmana'e. ecause its critical that you form a close -orkin' relationship -ith yourclient, customer ser)ice is of )ital importance. hat follo-s are a selection of tipsthat -ill make your clients feel )alued, -anted and lo)ed.

:. En2&r,1e F,2e6t&6F,2e De,0%n1!

This is the most dauntin' and do-nri'ht scary part of interactin' -ith a customer.

%f youre not used to this sort of thin' it can be a pretty ner)e6-rackin' eperience.

Rest assured, thou'h, it does 'et easier o)er time. %ts important to meet your

customers face to face at least once or e)en t-ice durin' the course of a project.

My eperience has sho-n that a client finds it easier to relate to and -ork -ith

someone they)e actually met in person, rather than a )oice on the phone orsomeone typin' into an email or messen'er pro'ram. hen you do meet them, be

calm, confident and abo)e all, take time to ask them -hat they need. % belie)e that

if a potential client spends o)er half the meetin' doin' the talkin', youre -ell on

your -ay to a sale.

5+ Re!#&nd t& Me!!,1e! Pr&#t0* / 8ee# Y&r C0%ent! In'&red

This 'oes -ithout sayin' really. e all kno- ho- annoyin' it is to -ait days for a

response to an email or phone call. %t mi'ht not al-ays be practical to deal -ith all

customers /ueries -ithin the space of a fe- hours, but at least email or call them

back and let them kno- you)e recei)ed their messa'e and youll contact them

41


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about it as soon as possible. @)en if youre not able to sol)e a problem ri'ht a-ay,

let the customer kno- youre -orkin' on it.

A 'ood eample of this is my eb host. They)e had some trouble -ith ser)er

hard-are -hich has caused a fair bit of do-ntime lately. At e)ery step alon' the

-ay % -as emailed and told eactly -hat -as 'oin' on, -hy thin's -ere 'oin'

-ron', and ho- lon' it -ould be before they -ere -orkin' a'ain. They also

apolo'i9ed repeatedly, -hich -as nice. o- if they ser)er had just 'one do-n

-ith no eplanation % think %d ha)e been pretty annoyed and may ha)e mo)ed my

business else-here. ut because they took time to keep me informed, it didnt

seem so bad, and % at least kne- they -ere doin' somethin' about the problems.

That to me is a prime eample of customer ser)ice.

>+ Be Fr%end0* ,nd A##r&,2,0e

A fello- $ite Pointer once told me that you can hear a smile throu'h the phone.

This is )ery true. %ts )ery important to be friendly, courteous and to make your

clients feel like youre their friend and youre there to help them out. There -ill be

times -hen you -ant to beat your clients o)er the head repeatedly -ith a blunt

object 6 it happens to all of us. %ts )ital that you keep a clear head, respond to your

clients -ishes as best you can, and at all times remain polite and courteous.

7+ H,$e , C0e,r0*6De'%ned C!t&er Ser$%2e P&0%2*

This may not be too important -hen youre just startin' out, but a clearly defined

customer ser)ice policy is 'oin' to sa)e you a lot of time and effort in the lon' run.

%f a customer has a problem, -hat should they do %f the first option doesnt -ork,

then -hat $hould they contact different people for billin' and technical en/uiries

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%f theyre not satisfied -ith any aspect of your customer ser)ice, -ho should they

tell

Theres nothin' more annoyin' for a client than bein' passed from person to

person, or not kno-in' -ho to turn to. Makin' sure they kno- eactly -hat to do

at each sta'e of their en/uiry should be of utmost importance. $o make sure your

customer ser)ice policy is present on your site 66 and any-here else it may be

useful.


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marketin' people are de)elopin'. As if by ma'ic, a couple of -eeks later a 6

R7M arri)es on their doorstep complete -ith hi'h resolution )ersions of all the

ima'es you)e used on the site. A note accompanies it -hich reads5

./i you mentioned a hardcopy ,rochure you ere or$ing on and I anted to

provide you ith largescale copies of the graphics I3ve used on the site4 /opefully

you3ll ,e a,le to ma$e use of some in your ,rochure4.

Dour client is heartily impressed, and remarks to his collea'ues and friends ho-

)ery helpful and considerate his eb desi'ners are. Mean-hile, in your office, you

lay back in your chair drinkin' your Bth cup of coffee that mornin', safe in the

kno-led'e this happy customer -ill send se)eral referrals your -ay.

K+ H&n&r Y&r Pr&%!e!

%ts possible this is the most important point in this article. The simple messa'e5

-hen you promise somethin', deli)er. The most common eample here is project

deli)ery dates.

lients dont like to be disappointed. $ometimes, somethin' may not 'et done, or

you mi'ht miss a deadline throu'h no fault of your o-n. Projects can be late,

technolo'y can fail and sub6contractors dont al-ays deli)er on time. %n this case a

/uick apolo'y and assurance itll be ready A$AP -ouldnt 'o amiss.

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CHAPTER@ 7

(An,0*!%! ,nd Inter#ret,t%&n &' D,t,)

45


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A+ ANALYSIS6

This section is about the arran'ement, orderin', classification, and analysis of data collected. %t

-ill in)ol)e some mathematical, 'eometrical and statistical tool to carry out the concerned

analysis. After analysis, interpretation of the analysed data -ill be carried out.

TOOLS OF ANALYSIS@

Pie charts, tables and dia'rams ha)e been used for the analysis of the data. ata has been

presented in a presentable form -hich is easy to understand and easy to deduce from.

HOW DATA WERE COLLECTED@

*1+ P!ima!y Data Primary ata -as collected usin' /uestionnaires. ata -as collected -ith

mere interaction and formal discussion -ith different respondents and face to face contact -ith

the persons from -hom the information -as to be obtained *kno-n as informants, as -ell as

customers+. >uestions -ere asked pertainin' to the sur)ey and desired information -ere

collected. %nformation -as also recei)ed from the -orkers of Reliance 8ife %nsurance ompany

8td. The information obtained -as first hand and ori'inal in character.

*2+ Se+on$a!y Data $econdary data -as collected usin' the -ebsite of the company and

)arious -ebsites about ne-s and industry trends.

SAMPLING6

Samp&in* Desi*n: The random samplin' is done because any probability samplin' procedure

-ould re/uire detailed information about the uni)erse, -hich is not easily a)ailable, further this

bein' an eploratory research.

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Samp&in* si>e: The samplin' si9e of the study is 100.

DATA ANALYSIS6

:+ O22#,t%&n &' 2!t&er &' LIC?

Ser$%2e B!%ne!! Ret%red Oter!


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5+ In2&e &' te 2!t&er! ;' LIC:;;;;6

5


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and less than 100000 and there are also some customer -ho has income more than100000 p.m. $o this stated that mainly customers of 8% are middle class -ho hasincome of 100006+ Re,!&n! '&r %n$e!t%n1 %n In!r,n2e P0,n! &' L%'eIn!r,n2e?

Ret"!n

s

S+)emes

a!e *oo$

Re+ommen$e$

3y Fami&y =

F!ien$s

Nee$s

to sa(e

ta0

Oe!s M"&tip&e

3eneits &i@e

in(estment

ins"!an+e Ta0

Sa(in* 55 >; :; 55 :?

22%

30%

10%

22%

16%

FIG 3

Returns

Sche'es (re )**d

Rec*''ended +, $('i, .

$riends

!eeds t* s(ve t(/

Oers Mutie +enets i3e

invest'ent 4insur(nce 4T(/

S(vin)

Inter#ret,t%&n@

%n fi' # it sho- that #0I customer purchase 8% because their schemes are better than othercompany. 22I purchase 8% policy for returns and 14I use 8% because their family

49


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recommended it. And in last 22Iuse it to sa)e ta and 10I customers purchase policy of 8% because in the policy 8% offers multiple R;%T$ like in)estment VinsuranceV ta sa)in'.

7+ W,t d& 2!t&er! 'ee0 ,'ter %n$e!t%n1 %n In!r,n2e P0,n!

&' L%'e In!r,n2e 2&er,t%&n#oo$

$e+ision

A(e!a*e&y Satisie$ ; >

67%

30%

3%

FIG 4

&**d decisi*n

ver()e, S(tised ith the

invest'ent

he(ted

Inter#ret,t%&n

%n fi' it sho-s the feelin' of customers after in)estin' in 8% policy. 4BI customer:s feels'ood decision after in)estin' in 8% policies and #0Icustomers are a)era'ely satisfied -ith thein)estment in 8% policies. And #I customers feels that they are cheated by company

50


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?+ D& *& t%n. te re2&end,t%&n '&r L%'e In!r,n2e %!

,tent%2 ,nd te ,1ent! 4 M,r.et%n1 Ee2t%$e! &' L%'e

%n!r,n2e 2&r#&r,t%&n ,re 1%$%n1 2&rre2t %n'&r,t%&n

re0,ted t& te #r&d2t! ,nd 2,r1e!

Ye! N&

=K :>

52


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K+ C!t&er! %n$e!t %n In!r,n2e P0,n! &' LIC e2,!e &'

T, Bene'%t!

YES NO

55 K=

22%

78%

FIG 7

ES

!O

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=+ Pre% A&nt t& e #,%d %n In!r,n2e P0,n! &' Y

L%'e In!r,n2e C&#,n* Highlysatisfactory

Satisfactor y

Averag e

Dissatisfactory Highlydissatisfactory

:< :; 5< :< <

20%

15%

35%

25%

5%

FIG 8

Hi)h, S(tis(ct*r,

S(tis(ct*r,

ver()e

SSTS$TOR

H&H:

SSTS$TOR

54


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+ PURPOSE(S) OF CUSTOMERS FOR BUYING AN INSURANCE POLICY6

WPercenta'e calculated rounded offX

P"!poses No7 o !espon$ents Pe!+enta*e o !espon$ents

;or old a'e sa)in's <


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:;+ C0,% !ett0eent #r&2edre t%e

Le!! t,n :<

d,*!

Le!! t,n >;

d,*!

Le!! t,n 7<

d,*!

Le!! t,n ?;

d,*!

M&re t,n ?;

d,*!

BI #"I !I =

; d,*!

Le!! t,n 7< d,*!

Le!! t,n ?; d,*!

M&re t,n ?; d,*!

T& !,t%!'* te 2&n!er! %n LIC te* ,.e e''e2t%$e #0%2

re0,t%&n! ,nd 2&n!er re0,t%&n!

56


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S+W+O+T+ ANALYSIS OF LIC@ A proper $..7.T. analysis of 8% has also been conducted

to kno- better about the position, 'ro-th, and upcomin' future and prospecti)e of the

company.

STRENGTHS@

LIC %! &n :!t r,n. ,&n1 te In!r,n2e #0,*er+

L&n16ter #0,n! &' LIC ,re te ,%n !tren1t+

A'ter !,0e! !er$%2e!+

Pr&d2t! 2&!t ,re $er* 0&+

C!t&er d&e! n&t e0%e$e &n #r%$,te 2&#,n*+

WEA8NESS@

L& %ntere!t r,te

OPPORTUNITIES@

G&&d r,nd #r&&t%&n+

:45nd6 %n!r,n2e ,! een 2&$ered+

THREATS@

C&#et%t&r!+

Entr* &' Pr%$,te In!r,n2e ,n.!+

57


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C&n20!%&n

And

Re2&end,t%&n!

58


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Con+&"sion

After ;indin':s -e can see about 8% features and his the tendency to take the

epedient approach and focus on the far ri'ht of the 8% spectrum,

Peacetime ontin'ency 7perations and conduct trainin' as usual, -hile briefin'

that the 8% block has been checked, -ill lead us to a possibly fatal false sense of

security.

%nstincti)e beha)ior and in'rained trainin' must be adjusted to fit ne-

circumstances. $TYs must be de)eloped locally or borro-ed from units -ho ha)e

already been throu'h the trainin'.

The probability of becomin' in)ol)ed in a 8% operation is hi'h. The potential toattract international attention, e)en -ith limited forces, is also 'reat. (nits ha)e

demonstrated that -ith a balanced trainin' focus and proper preparation, many

pitfalls outlined abo)e can be a)oided.

8% is not con)entional -arfare. This is critical for the counterinsur'ent to

understand. The insur'ent:s )iolent and coerci)e strate'y is applied so as to

achie)e political, ci)il, military and psycholo'ical results. ?ence, the

counterinsur'ent must counter all of these strate'ic elements indi)idually. %n

addition, the tar'et of the insur'ent:s )iolence and coercion is the population.

This is because the population is the entre of 'ra)ity in 8%. Therefore the

counterinsur'ent must also focus on the population to be successful. %n terms of

military principles in counterinsur'ency, doctrinal precision, professionalism,

independence, initiati)e, force precision, restraint, combined arms, precision

en'a'ement, joint force, effecti)e population based intelli'ence, inte'rated

communications, a ci)il affairs approach and hi'h le)els of trainin' are critical. $o

all policies and plan totally satisfied the customers.

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Re2&end,t%&n!

TO CONERT ALL NEGATIE POINT IN POSITIE TO SIT IN FIRSTLEEL IN INSURANCE AREAS FOREER AND IMPROE Q+D+C

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BIBLIO#RAPHY

Impo!tant


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QUESTIONNAIRE

Sr+ N&++ D,te@ +

I9 A-,* Pr,.,!9 !tdent &' M,,r,-, Sr,-,0 In!t%tte9 GGSIPU9 Ne De0% , d&%n1

t%! M,-&r Pr&-e2t Re#&rt &n C!t&er! !,t%!',2t%&n &n te !er$%2e! #r&$%ded * LIC '&r

te '0'%0ent &' * BACHELOR IN BUSINSS ADMINISTRATION F%n,0 See!ter+ S&9

.%nd0* 2&er,te ,nd 1%$e *&r re!#&n!e! 'ree0*+ I ,!!re *& t,t te %n'&r,t%&n #r&$%ded

* *& %00 e !ed &n0* '&r ,2,de%2 #r#&!e ,nd %00 e !tr%2t0* .e#t 2&n'%dent%,0+

N,e@

A1e@

C&nt,2t N&+@ ++

Gender@ Male ;emale

>1. Dour 7ccupationa. $er)ice

b. usiness

c. Retired

d. 7thers

>2. Dour %ncome

a. 1000061


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>. hat do you feel after in)estin' in %nsurance Plans of YDJ 8ife %nsurance

a. &ood

b. A)era'ely $atisfied -ith the in)estment decision

c. heated

>4. o you think the recommendation for YDJ 8ife %nsurance is authentic and the a'ents =

Marketin' @ecuti)es of YDJ 8ife insurance are 'i)in' correct information related to the

products and char'es

a. Des

b. o

>B. o you in)est in %nsurance Plans of YDJ 8ife because of Ta enefitsa. Des

b. o

>". ?o- is the Premium Amount to be paid in %nsurance Plans of YDJ 8ife %nsurance

ompany

a. ?i'hly $atisfactory

b. $atisfactory

c. A)era'e

d. issatisfactory

e. ?i'hly issatisfactory

>!. ?o- are the %nsurance Policies of YDJ 8ife %nsurance


b. $atisfactory

c. A)era'e

d. issatisfactory


>10. ?o- are the Returns in %nsurance Policies of YDJ 8ife %nsurance


b. $atisfactoryc. A)era'e

d. issatisfactory


>11. ?o- are the har'es in %nsurance Policies of YDJ 8ife %nsurance

a. ?i'h

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b. A)era'e

c. 8o-

>12. hat -ould you like more in %nsurance Policies of YDJ 8ife %nsurance

a. More benefits

b. More securityc. 7thers, please specify

>1#. Rate your o)erall satisfaction -ith %nsurance Policies of YDJ 8ife %nsurance


b. $atisfactory

c. A)era'e

d. issatisfactory


mpr on lic

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