Lic Hard Bound-1

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Ch 1.
Industry
profile








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INTRODUCTION

INSURANCE
Insurance is a risk management technique primarily used
to hedge against the risk of a contingent, uncertain loss that
may be suffered by those individuals or entities who have an
insurable interest in scarce resources, by transferring the
possibility of this loss from one interested person, persons, or
entity to another. The scarce resources referred to here fall
into three divisions: human resources, financial resources, and
capital, or tangible resources. In the context of insurance,
scarce resources are also known as "exposures," because they
are "exposed" to perils, those things, or forces, which cause
destruction or reduction, in the usefulness, or value, of an
exposed resource. Human resources are thus exposed to perils
such as illness or death; financial resources to legal
judgements that may result from negligent acts, and capital
resources to physical perils such as fire, theft, windstorm, and
vandalism, to name but a few. A hazard is the cause of a peril.
It is that thing or condition which increases the likelihood of a
peril. Thus perils and hazards are identified by the exposure
that they threaten. For example a slippery roadway could be
viewed as a financial hazard, capital hazard, or human hazard
by automobile owners, and rightly so, since this condition
increases the likelihood of an automobile accident that might
result in an unfavourable legal judgement, automobile
damage, and bodily injury.
In the context of commercial trade, insurance is further
defined as the equitable transfer of the risk of a loss, from one
entity to another, in exchange for consideration, payment, in
the form of a risk premium. The insurance premium develops
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at an actuarially-determined rate. This rate is a factor used to
determine the amount of premium to charge for a certain
limit, and type, of insurance on the scarce resource. The
premium can further be viewed as a guaranteed, known,
relatively small financial loss to the insured, paid to the
insurer, in exchange for the insurer's promise to compensate
(indemnify) the insured in the case of a loss to the insured
resource(s). The insured receives a contract, called
the insurance policy, which details the conditions and
circumstances under which the insured will be indemnified.














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Insurance Services

Insurance is system by which the losses suffered by a few are
spread over many, exposed to similar risks. Insurance is a
protection against financial loss arising on the happening of
an unexpected event. Insurance policy helps in not only
mitigating risks but also provides a financial cushion against
adverse financial burden ssuffered.

Insurance policies cover the risk of life as well as other assets
and valuables such as home, automobiles, and jewellery.
The functions of Insurance can be bifurcated into two parts:
 Primary Functions
 Secondary Functions
 Other Functions
Primary Functions
 Provide Protection: The primary function of insurance
is to provide protection against future risk, accidents and
uncertainty. Insurance cannot check the happening of the
risk, but can certainly provide for the losses of risk.
Insurance is actually a protection against economic loss,
by sharing the risk with others.
 Collective Bearing of Risk: Insurance is a device to
share the financial loss of few among many others.
Insurance is a mean by which few losses are shared
among larger number of people. All the insured
contribute the premiums towards a fund and out of which
the persons exposed to a particular risk is paid.
 Assessment of Risk: Insurance determines the probable
volume of risk by evaluating various factors that give
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rise to risk. Risk is the basis for determining the premium
rate also
 Provide Certainty: Insurance is a device, which helps to
change from uncertainty to certainty. Insurance is device
whereby the uncertain risks may be made more certain.


Secondary Functions
 Prevention of Losses: Insurance cautions individuals
and businessmen to adopt suitable device to prevent
unfortunate consequences of risk by observing safety
instructions; installation of automatic sparkler or alarm
systems, etc. Prevention of losses causes lesser payment
to the assured by the insurer and this will encourage for
more savings by way of premium. Reduced rate of
premiums stimulate for more business and better
protection to the insured.
 Small Capital to cover Larger Risks: Insurance
relieves the businessmen from security investments, by
paying small amount of premium against larger risks and
uncertainty.
 Contributes towards the Development of Larger
Industries: Insurance provides development opportunity
to those larger industries having more risks in their
setting up. Even the financial institutions may be
prepared to give credit to sick industrial units which have
insured their assets including plant and machinery.
Other Functions
 Means of Savings and Investment: Insurance serves as
savings and investment, insurance is a compulsory way
of savings and it restricts the unnecessary expenses by
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the insured's For the purpose of availing income-tax
exemptions also, people invest in insurance.
 Source of Earning Foreign Exchange: Insurance is an
international business. The country can earn foreign
exchange by way of issue of marine insurance policies
and various other ways.
 Risk Free Trade: Insurance promotes exports insurance,
which makes the foreign trade risk free with the help of
different types of policies under marine insurance cover.
Brief History of Insurance Sector in India
The insurance sector in India has come a full circle from
being an open competitive market to nationalization and back
to a liberalized market again. Tracing the developments in the
Indian insurance sector reveals the 360-degree turn witnessed
over a period of almost 190 years. The business of life
insurance in India in its existing form started in India in the
year 1818 with the establishment of the Oriental Life
Insurance Company in Calcutta.

Milestone of Life Insurance in India
 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 taken over by the central government and
nationalized. LIC formed by an Act of Parliament, viz.
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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.
Some of the important milestones in the general insurance
business in India are:
 1907 - The Indian Mercantile Insurance Ltd. set up, the
first company to transact all classes of general insurance
business.
 1957 - General Insurance Council, a wing of the
Insurance Association of India, frames a code of conduct
for ensuring fair conduct and sound business practices.
 1968 - The Insurance Act amended to regulate
investments and set minimum solvency margins and the
Tariff Advisory Committee set up.
 1972 - The General Insurance Business (Nationalization)
Act, 1972 nationalized the general insurance business in
India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies
viz. the National Insurance Company Ltd., the New India
Assurance Company Ltd., the Oriental Insurance Company
Ltd. and the United India Insurance Company Ltd. GIC
incorporated as a company.

On the basis of the risk they cover, insurance policies can be
classified into two categories:
 Life Insurance Policies
 General Insurance Policies
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Life Insurance India
Life is very fragile and death is a certainty. We cannot control
the uncertainties of life. But, we can cover the risks
surrounding us. Life insurance, simply put, is the cover for the
risks that we run during our lives. It protects us from the
contingencies that could affect us.

Life insurance is not for the person who passes away, it for
those who survive. It is the responsibility of every bread
earner to guard against the events that could affect the family
in the unfortunate circumstance of his / her demise. Thus,
having a life insurance policy is very vital. Before going for a
life insurance policy it is imperative that you know about
various types of life insurance policies. Major among them
are:
 Endowment Policy
 Whole Life Policy
 Term Life Policy
 Money-back Policy
 Joint Life Policy
 Group Insurance Policy
 Loan Cover Term Assurance Policy
 Pension Plan or Annuities
 Unit Linked Insurance Plan
GeneralInsurance,(India)
General Insurance provides much-needed protection against
unforeseen events such as accidents, illness, fire, burglary et
al. Unlike Life Insurance, General Insurance is not meant to
offer returns but is a protection against contingencies. Almost
everything that has a financial value in life and has a
probability of getting lost, stolen or damaged, can be covered
through General Insurance policy.
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Property (both movable and immovable), vehicle, cash,
household goods, health, dishonesty and also one's liability
towards others can be covered under general insurance policy.
Under certain Acts of Parliament, some types of insurance
like Motor Insurance and Public Liability Insurance have been
madecompulsory.

Major insurance policies that are covered under General
Insurance are:
 Home Insurance
 Health Insurance
 Motor Insurance
 Travel Insurance
InsuranceCompanies(India)
Before insurance sector was opened to the private sector Life
Insurance Corporation (LIC) was the only insurance company
in India. After the opening up of Insurance sector in India
there has been a glut of insurance companies in India. These
companies have come up with innovative and flexible
insutrance policies to cater to varying needs of the individual.
Opening up of the Insurance sector has also forced the Lic to
tighten up its belt and deliver better service. All in all it has
been a bonanza for the consumer.







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Major Life Insurance Companies
 Aviva Life Insurance
 Bajaj Allianz
 Birla S un Life Insurance
 HDFC Standard Life Insurance
 ICICI Prudential
 ING Vysya
 Kotak Mahindra
 LIC
 Max New York Life Insurance
 Metlife India Insurance
 Reliance Life Insurance
 SBI Life Insurance
 Shriram Life Insurance
 Tata AIG Life Insurance









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Effects OF Insurance
Insurance can have various effects on society through the way
that it changes who bears the cost of losses and damage. On
one hand it can increase fraud, on the other it can help
societies and individuals prepare for catastrophes and mitigate
the effects of catastrophes on both households and societies.
Insurance can influence the probability of losses
through moral hazard, insurance fraud, and preventive steps
by the insurance company. Insurance scholars have typically
used moral hazard to refer to the increased loss due to
unintentional carelessness and moral hazard to refer to
increased risk due to intentional carelessness or indifference.
Insurers attempt to address carelessness through inspections,
policy provisions requiring certain types of maintenance, and
possible discounts for loss mitigation efforts. While in theory
insurers could encourage investment in loss reduction, some
commentators have argued that in practice insurers had
historically not aggressively pursued loss control measures -
particularly to prevent disaster losses such as hurricanes -
because of concerns over rate reductions and legal battles.
However, since about 1996 insurers began to take a more
active role in loss mitigation, such as through building codes.
Insurers' business model
Underwriting and investing
The business model is to collect more in premium and
investment income than is paid out in losses, and to also offer
a competitive price which consumers will accept. Profit can
be reduced to a simple equation: Profit = earned premium +
investment income - incurred loss - underwriting expenses.
Insurers make money in two ways:
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1. Through underwriting, the process by which insurers
select the risks to insure and decide how much in
premiums to charge for accepting those risks;
2. By investing the premiums they collect from insured
parties.
The most complicated aspect of the insurance business is
the actuarial science of ratemaking (price-setting) of policies,
which uses statistics and probability to approximate the rate of
future claims based on a given risk. After producing rates, the
insurer will use discretion to reject or accept risks through the
underwriting process.
At the most basic level, initial ratemaking involves looking at
the frequency and severity of insured perils and the expected
average payout resulting from these perils. Thereafter an
insurance company will collect historical loss data, bring the
loss data to present value, and comparing these prior losses to
the premium collected in order to assess rate adequacy. Loss
ratios and expense loads are also used. Rating for different
risk characteristics involves at the most basic level comparing
the losses with "loss relativities" - a policy with twice as
money policies would therefore be charged twice as much.
However, more complex multivariate analyses through
generalized linear modeling are sometimes used when
multiple characteristics are involved and a univariate analysis
could produce confounded results. Other statistical methods
may be used in assessing the probability of future losses.
Upon termination of a given policy, the amount of premium
collected and the investment gains thereon, minus the amount
paid out in claims, is the insurer's underwriting profit on that
policy. Underwriting performance is measured by something
called the "combined ratio" which is the ratio of
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expenses/losses to premiums. A combined ratio of less than
100 percent indicates an underwriting profit, while anything
over 100 indicates an underwriting loss. A company with a
combined ratio over 100% may nevertheless remain profitable
due to investment earnings.
Insurance companies earn investment profits on "float". Float,
or available reserve, is the amount of money on hand at any
given moment that an insurer has collected in insurance
premiums but has not paid out in claims. Insurers start
investing insurance premiums as soon as they are collected
and continue to earn interest or other income on them until
claims are paid out. The Association of British
Insurers (gathering 400 insurance companies and 94% of UK
insurance services) has almost 20% of the investments in
the London Stock Exchange.In the United States, the
underwriting loss of property and casualty
insurance companies was $142.3 billion in the five years
ending 2003. But overall profit for the same period was $68.4
billion, as the result of float. Some insurance industry insiders,
most notably Hank Greenberg, do not believe that it is forever
possible to sustain a profit from float without an underwriting
profit as well, but this opinion is not universally held.
Naturally, the float method is difficult to carry out in
an economically depressed period. Bear markets do cause
insurers to shift away from investments and to toughen up
their underwriting standards, so a poor economy generally
means high insurance premiums. This tendency to swing
between profitable and unprofitable periods over time is
commonly known as the underwriting, or insurance, cycle


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Life
insurance











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There are various kinds of insurance available in the
market. In this particular project we are concentrating
on life insurance.

Life insurance

Life insurance ensures that your family will receive
financial support in your absence. Put simply, life
insurance provides your family with a sum of money
should something happen to you. It protects your family
from financial crises.
In addition to serving as a protective cover, life insurance
acts as a flexible money-saving scheme, which empowers
you to accumulate wealth-to buy a new car, get your
children married and even retire comfortably. Life
insurance also triples up as an ideal tax-saving scheme.

Major risk a family is exposed due to death of the
breadwinner of a family
In the above circumstance, the source of income comes to an
end but not the expenses. They remain, as they were earlier
before the death of the breadwinner of the family.
Just in case, the income doesn't remain the same as earlier, the
family has to downgrade their standard of living. This kind of
situation may affect the future of the family drastically. To
overcome all these risks, life insurance is mandatory for
everyone who has any dependant on his or her income besides
any kind of liability like a home loan or a personal loan or any
other loan. In case of death of the insured, the money, which
is received from the Life Insurance Company, is paid to the
bank or the financial institution from where the loan is taken.

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The next question is how much insurance should one
take?
To put that in simple words, the sum assured should be large
enough to take care of your entire family expenses along with
your liabilities if any and also should fulfill all the goals of
your children's future or buying a home for your family or any
other goal you have. This is quite a sophisticated process and
you should take professional help to know how much sum
assured you need. To have a fair idea of your life insurance
requirement, you can do the calculations on our site on our
life insurance planner calculator. but before you go ahead to
buy a life insurance plan for yourself, we would suggest you
to take some kind of professional help. Taking a lower sum
assured than your requirement means that you are not
adequately insured and in case of death, your family will have
to make some kind of compromises either in regular expenses
or for the goals you had set for your family.

In case you have taken reverse route, like going in for more
insurance than you need, implies that you are paying more
premiums that is actually not needed. You can use this money
somewhere else to plan for some other goals you have for
your future.






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Need for Life Insurance
Today, there is no shortage of investment options for a person
to choose from. Modern day investments include gold,
property, fixed income instruments, mutual funds and of
course, life insurance. Given the plethora of choices, it
becomes imperative to make the right choice when investing
your hard-earned money. Life insurance is a unique
investment that helps you to meet your dual needs - saving for
life's important goals, and protecting your assets.
Let us look at these unique benefits of life insurance in detail.
Life insurance is the only investment option that offers
specific products tailormade for different life stages. It thus
ensures that the benefits offered to the customer reflect the
needs of the customer at that particular life stage, and hence
ensures that the financial goals of that life stage are met.











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The table below gives a general guide to the plans that are
appropriate for different life stages.
Life Stage Primary Need
Life Insurance
Product
Young &
Single
Asset creation Wealth creation plans
Young &
Just married
Asset creation &
protection
Wealth creation and
mortgage protection
plans
Married
with kids
Children's
education, Asset
creation and
protection
Education insurance,
mortgage protection &
wealth creation plans
Middle aged
with grown
up kids
Planning for
retirement & asset
protection
Retirement
solutions & mortgage
protection
Across all
life-stages
Health plans Health Insurance






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Ch 2.
Research
And
Methodology








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Objectives
Of
project









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Primary objectives-
Study will be conducted on Brand Image of LIC.
An attempt will also be made to study the viewpoint of
policyholders and further to suggest the modalities to
improve the efficiency of LIC.


Secondary objectives-
To find out the advantages of the policies offered by
LIC over various companies.
An attempt will also be made to study the
differentiating strategies adopted by LIC to win the
customers.


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Limitations













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LIMITATIONS

1.Limited time period.
2.Limited area network.
3.Clients in some cases were rude.
4.Hard to find willing clients.
5.Clients may be of homogeneous nature because of small
target area.











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Ch 3.
Company
profile










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LIFE INSURANCE CORPORATION OF INDIA
The Life Insurance Corporation of India (LIC) ( भारतीय
जीवन बीमा ननगम) is the largest state-owned life
insurance company in India, and also the country's largest
investor. It is fully owned by the Government of India. It also
funds close to 24.6% of the Indian Government's expenses. It
has assets estimated of 13.25 trillion (US$295.48 billion). It
was founded in 1956 with the merger of 243 insurance
companies and provident societies.
Headquartered in Mumbai, financial and commercial capital
of India, the Life Insurance Corporation of India currently has
8 zonal Offices and 113 divisional offices located in different
parts of India, around 3500 servicing offices including 2048
branches, 54 Customer Zones, 25 Metro Area Service Hubs
and a number of Satellite Offices located in different cities
and towns of India and has a network of 13,37,064 individual
agents, 242 Corporate Agents, 79 Referral Agents, 98 Brokers
and 42 Banks (as on 31.3.2011) for soliciting life insurance
business from the public.
The slogan of LIC is "Zindagi ke saath bhi,Zindagi ke baad
bhi" ( ज़नदगी के साथ भी, ज़नदगी के बाद भी) which means
"during life and after life".

History
The Oriental Life Insurance Company, the first corporate
entity in India offering life insurance coverage, was
established in Calcutta in 1818 by Bipin Bernard Dasgupta
and others. Europeans in India were its primary target market,
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and it charged Indians heftier premiums. The Bombay Mutual
Life Assurance Society, formed in 1870, was the first native
insurance provider. Other insurance companies established in
the pre-independence era included
 Bharat Insurance Company (1896)
 United India (1906)
 National Indian (1906)
 National Insurance (1906)
 Co-operative Assurance (1906)
 Hindustan Co-operatives (1907)
 Indian Mercantile
 General Assurance
 Swadeshi Life (later Bombay Life)
The first 150 years were marked mostly by turbulent
economic conditions. It witnessed, India’s First War Of
independence, adverse effects of the World War I and World
War II on the economy of india, and in between them the
period of world wide economic crises triggered by the Great
depression. The first half of the 20th century also saw a
heightened struggle for India’s Independence. The aggregate
effect of these events led to a high rat of
bankruptcies and liquidation of life insurance companies in
India. This had adversely affected the faith of the general
public in the utility of obtaining life cover.
The Life Insurance Act and the Provident Fund Act were
passed in 1912, providing the first regulatory mechanisms in
the Life Insurance industry. The Indian Insurance Companies
Act of 1928 authorized the government to obtain statistical
information from companies operating in both life and non-
life insurance areas. The subsequent Insurance Act of 1938
brought stricter state control over an industry that had seen
several financially unsound ventures fail. A bill was also
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introduced in the Legislative Assembly in 1944 to nationalize
the insurance industry.
Past Chairmen
Messrs. H.M.Patel, Gopalkrishnan, M.R.Yardi, M.R.Bhide,
T.A.Pai, K.R.Puri, Jacob Mathen, J.R.Joshi, A.S.Gupta,
R.Narayanan, N.K.Shinkar, M.G.Diwan, K.P.Narasimhan,
N.N.Jambusaria, J.Salunkhe, N.M.Govardhan,
G.Krishnamurthy, G.N.Bajpai, S.B.Mathur, R.N.Bharadwaj,
Atul Shukla and Tai Salas Vijayan.
Nationalization
In 1955, parliamentarian Amol Barate raised the matter of
insurance fraud by owners of private insurance companies. In
the ensuing investigations, one of India's wealthiest
businessmen,Ram Kishan Dalmia, owner of the Times of
India newspaper, was sent to prison for two years. Eventually,
the Parliament of India passed the Life Insurance of India Act
on 1956-06-19, and the Life Insurance Corporation of India
was created on 1956-09-01, by consolidating the life
insurance business of 245 private life insurers and other
entities offering life insurance services. Nationalization of the
life insurance business in India was a result of the Industrial
Policy Resolution of 1956, which had created a policy
framework for extending state control over at least seventeen
sectors of the economy, including the life insurance.
Current status


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LIC building, at Connaught Place, New Delhi, designed
by Charles Correa, 1986.
Over its existence of around 50 years, Life Insurance
Corporation of India, which commanded a monopoly of
soliciting and selling life insurance in India, created huge
surpluses, and contributed around 7 % of India's GDP in 2006.
The Corporation, which started its business with around 300
offices, 5.6 million policies and a corpus of INR 459 million
(US$ 92 million as per the 1959 exchange rate of roughly Rs.
5 for a US $, has grown to 25000 servicing around 350
million policies and a corpus of over 8 trillion (US$178.4
billion).
Awards and Recognition
The Economic Times Brand Equity Survey 2010 rated LIC as
the No. 4 Service Brand of the Country. Though in the year
2010 is ranked at 4, the organization is consistently among the
top rated service company of the India.
According to The Brand Trust Report 2011, LIC is the 8th
most trusted brand of India.









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Roles of lic













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Role of LIC
1. Largest insurance company in India- 55% shares in 2009,
monopoly for 50 years, insurance is not an option but
necessity in current times.
2. Largest institutional investor.
3. Covers different economic sections of the society.
4. Largest insurer in rural areas.
5. Help in channelizing money of NRI’S through schemes-
currency policy.
6. One of the biggest employer.
7. Funds to private sector.
8. Social service with profit.













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Objectives of
lic









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Objectives of LIC
1. Spread life insurance widely and in particular to the rural
areas and to the socially and economically backward
classes with a view to reaching all insurable persons in
the country and providing them adequate financial cover
against death at a reasonable cost.
2. Maximize mobilization of people’s savings by
making insurance linked savings adequately attractive.
3. Bear in mind, in the investments of funds, the primary
obligation to its policy holders, whose money it holds in
trust. without losing sight of the interest of the
community as a whole; the finds 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.
4. Conduct business with utmost economy and with the full
realization that the moneys belong to the policy holders.
5. Act as trustees of the insured public in their individual
and collective capacities.
6. Meet the various life insurance needs of the community
that would arise in the changing social and economic
environment.
7. Involve all people working in the corporation to the best
of their capabilities in furthering the interests of the
insured public by providing efficient service with
courtesy.
8. Promote amongst all agents and employees of the
corporation a sense of participation, pride and job
satisfaction through discharge of their duties with
dedication towards achievement of Corporate objectives
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Premium












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LIC of India - Modes of insurance payment
There are 5 modes of premium payment methods in LIC of
India. LIC of India provides rebates on the premium to be
paid based on the mode of payment made by the policy
holder. The highest rebate is given to the yearly mode.

Quarterly: The premium has to be paid every 3 months in a
policy year. Usually there are no rebates given for this mode
of premium payment.

Half yearly: The premium amount has to be paid every 6
months of the policy year. Usually rebates are given to this
kind of payment. However the rebate percentage varies
according to the policy.

Yearly: This most welcomed mode of payment by LIC of
India. The highest rebate is given to this mode of payment
since it eases the managing and accounting processes of the
company for the particular policy holder.

Monthly: The policy premium has t be paid every month of
the policy year. A 5% percentage of the premium amount has
to be paid extra for this mode of premium. This is not the
recommended form of premium payment since it increases the
overhead for both the policy holder as well as the insurance
company.

Salary savings scheme (SSS): In this mode of premium
payment the policy premium will be deducted from the salary
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of the policy holder every month automatically. The
difference between monthly mode and this mode is that the
extra premium has not to be paid in this mode of premium.
For selecting this mode of premium the organization in which
the policy holder is working should support this practice.






















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Ways of paying LIC premium

Usually the premium payment for the LIC policies is made in
three
different ways. They are
1. Payment through the LIC agent from whom the policy was
bought. Thisis most widely used method for paying the
premium. The agents will
remind the policy holders when the due period is near. This
avoids the
lapse of policies and increases the income of the corporation.
But it
is not sure that all agents will remind near by the due time.
According to the corporation it is the sole responsibility of the
policy holder to pay the premium on time. However the
corporation will
also send a letter to the policy holder when the due period is
near.
Payment through the lic branch offices:
If the policy holder has decided to pay the premium by
himself he can
pay the premium at any lic branch office across india. All the
branches are interconnected through the network. The policy
holder
will get the computer generated receipt as soon as he pays the
premium.
OnlinePayment:
According to me this is the most easiest and comfortable
mode of
premium payment. There is no working hours restriction in
this way ofpremium payment. The payment can be made
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round the clock. If youhavea credit card or internet banking
account this is the most preferred
way. For this you should get registered in the lic website and
enroll
your policies there. Proper guidelines are given in the lic site.

















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Late fee or fine for delayed payment of premium in LIC

If the premium amount is not paid on the due date then the
policy is considered to be a lapsed policy. However the policy
can be revived within six months of the policy lapsation
paying a small amount as the interest.
So how the delayed payment interest is calculated?
LIC considers the delay of 1 month 14 days as one month.
1 month 15 days to 2 months 14 days as 2 months and like
that. A delay of just 15 days will also be considered as a
delay of one month. And the fine will be charged at the
rate of 8%












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Ch 4.
Analysis Of 4
major
policies







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In lic we have two basic products and 290 combinations
attached to these products. As we had limited time period so
we were trained about 4 policies during the same which are as
follows:
1. JEEVAN SARAL POLICY
JEEVAN SARAL LIFE INSURANCE POLICY BY
LIC
(Table No. 165)
Feature of plan: This plan contains good feature of the
conventional plans and the flexibility of unit linked plans.
It provides higher cover, smooth return, liquidity and
considerable flexibility. In this plan one has to choose the
premium he wants to pay whereas in normal plans one
chooses the S.A. under this plan death cover will be same
irrespective of age at entry and term. The sum payable at
maturity however differs for different entry age and terms.
This plan is very appropriate for employees seeking life
cover through salary savings schemes.
Surrender value: the policy can be surrender after it has
been in force for at least 3 full years. The surrender value
will be the greater then guaranteed surrender value or
special surrender value as given below:
Guaranteed surrender value (GSV): the GSV will be
equal to the 30% of the total amount of premium paid
excluding the premium for the first year and all the extra
premiums and premium for accident / term riders.
Special surrender value (SSV): the special surrender
41

value under the policy shall be paid as the sum of (a) and
(b) gives as under:
 Discounted value or accumulated value, as the case
may be, of the following: 80% of maturity S.A. if 4
years premium have been paid, 90% of the maturity
S.A. if or more years but less then 5 years premiums
have been paid and 100% of the maturity S.A. if 5 or
more years premium have been paid.
 The loyalty additions, if any as announced while
declaring the results of the corporation's valuation as
on 31st march, immediately preceding the date of
surrender.
Auto cover: the plan offers auto cover of 12 month after
the policy has been in force for a period of 3 years or more.
Flexible term: the policyholder can choose a maximum
term but can surrender at any time without any surrender
penalty or loss.
Partial surrenders: the plan will allow partial surrender
from 4th year onwards subject to certain conditions for
which please refer to policy document. Due to existence of
the flexible term and partial surrender the policyholder will
enjoy a lot of liquidity under the plan. The plan also
provides for 15 days free look period".
Optional rider: term assurance rider, accidental death and
disability benefit rider is available by the payment of an
addition premium.
Maturity sum assured (MSA): has to be calculated on the
basic premium only, before mode rebate & death accident
42

benefit.
Death benefit S.A. will be 250 times the monthly basic
premium. To arrive at DAB we have to calculate death
benefit S.A. e.g. if yearly premium is Rs.6000
The death benefit S.A. = 6000/12 x 250 = 1,25,000 for this
DAB will be @ Re.1per thousand which come out to be
Rs.125
Plan parameters
Age at entry: Min.12 yrs (completed) Max. 60 yrs (NBD)
Maturity age: Min.70 yrs
Term: Min.10 yrs Max. 35 yrs
Min. premium
Age 12 to 49:Rs.250 P.M
Age 15 to 60: Rs.400 P.M
Max. Premium: No. Limits
Premium in
Multiples: Rs.50 p.m.
Mode of payment: YLY/ HLY/ OLY/ SSS
Accident benefit: Re. 1extra per
(max. 50 Lac inclusive
all plan)
Policy loan: yes @ 10.5%
Housing loan: yes
Assignment: yes
Revival: yes
Surrender of policy: yes
Term: yes
Underwriting condition
Form no: 300/340
Age proof: Std/ NSAP-1
43

Female lives category: I/II/III
Non-medical (Gen): Allowed
Non-medical (Prof): Allowed
Non-medical (special): Allowed
Actual sum assured: Basic SA
Risk coverage: Death benefit S.A. + return of premium
paid + LA (if any)
Dating back @ 8%: Allowed
Benefit
Maturity benefit: Maturity sum assured (MSA) + Loyalty
additions, if any
Death benefit: 250 times the monthly premium + Return
of premiums
(Excluding extra/rider premium and first year premium),+
the Loyalty Addition, if any
Example: Mr. ashok is 25 years old and is working in auto
industry. He opts for jeevan saral plan for 15 years term
and chooses monthly basic premium of Rs.500/- after
adding DAB premium of Rs.510 (500 x 250 = 1,25,000 x
1/1000 x 1/12 = 10 + 510). On maturity he will receive
Rs.97655/- as maturity sum assured (MSA) + Loyalty
Addition which will be decided by the corporation. If he
dies after 4 years, his nominee will get Rs.1,25,000 (250 x
500) + premium paid for 4 years - first year premium =
1,25,000 + 24,480 - 6120 = 1,43,360/- + Loyalty Addition,
if any



44

2. JEEVAN TARANG POLICY
JEEVAN TARANG LIFE INSURANCE POLICY BY
LIC
With profits (Table. No 178)
Features of plan: jeevan tarang plan (plan No.178) is
introduced w. e. f 17th march 2006. the plan is a whole life
plan, which provides annual survival benefit at a rate of 5.5
%

Of the sum assured for life time after the chosen
accumulation period

Accumulation period:
The plan offer three accumulation periods - 10, 15 and 20
years. A proposer may choose.

Plan parameters
Age at entry: min.0 yrs. (LBD) max 60 yrs. (NBD)
Premium payment
Ceasing age: 70 yr. (NBD)
Age up which
Life cover available: 100 yrs. (completed)
Min. age at the and
Of accumulation period: 18 yrs. (completed)
Sum assured: min. 1 Lac max. no. limit
Premium
In multiples: Rs.5000
Accumulation period: 10,15,20, yrs
Mode of payment: YLY/ HLY/ QLY/ SSS/ MLY/ SP
Accident benefit: Re. 1 extra per
(max. 50Lacs inclusive 1000 S.A.
45

all plan)
Policy loan: yes
Housing loan: yes
Assignment: yes
Revival: yes
Surrender of policy: yes
Term rider: yes
CIR: yes

Underwriting condition
Form no: 300/340/360
Age proof: std./ NSAP- 1.2.3
Female lives category: I/II/III
Non-medical (gen): allowed
Non-medical (prof): allowed
Non-medical (special): allowed
Actual sum assured: basic SA
Dating back: allowed @ 9% p.a

BENEFITS:

Survival benefit
 The vested simple reversionary bonuses will be
payable in one lump sum on survival to the end of the
selected accumulation period.
 5 ½ % of the sum assured will be payable on survival
to the and each year after the accumulation period.
The first survival benefit will be payable on survival
to one year after the accumulation period is over.
Maturity benefit:
46

 The sum assured, along with vested reversionary
bonus is payable in case of death of the life assured
during the accumulation period.
 In case of death before commencement of risk when
the life assured is aged less then or equal to 12 years,
the premiums paid will be retuned without any
interest. There will be no death benefit either for the
basic sum assured or for simple reversionary bonuses
since, in such case, the risk for life cover commences
after 2 years from the death of taking of the policy
anniversary coinciding with or immediately following
the date on which life assured completes 7 years of
age , whichever is later. After the commencement of
risk, the normal death benefit as stated above is
payable.
 The sum assured along whichever along with loyalty
addition, if any payable in case of death of the life
assured any time after the accumulation period.
Optional riders (available during the accumulation
period only)
Accident benefit rider option (allowed for regular premium
policies only):
Accident benefit option will be available under the plan by
the payment of conditional premium. Accident benefit
rider shall be available for an amount not exceeding the
sum assured under the basic plan subject to an overall limit
of Rs.50Lakh taking all existing policies of the life assured
under individual as will as group schemes including those
with in- built accident benefit taken with the corporation
and other insurance companies and the accident benefit
rider sum assured the new proposal into consideration.
This benefit is available under regular premium policies
47

only and it is available under premium policies.
Term assurance rider option: term assurance as optional
rider will be available under this plan during the
accumulation period. The premium for this option are
payable during the premium paying term and an amount
equal to term assurance sum assured will be payable on
death during the accumulation period. The maximum cover
for rider will be Rs.25Lakh under all policies of the life
assured with the corporation taken together. The terms and
condition applicable to this rider will be as mentioned in
circular Ref: Actl/1909/4 dated 24th October 2003.
Critical illness rider option: an amount equal to critical
illness rider sum assured will be payable in case of
diagnosis of defined categories of critical illness during the
accumulation period subject to certain term and conditions.
The maximum cover for this rider will be Rs.5Lakh under
all policy all policy of the life assured with the corporation
taken together. The term and conditions applicable to this
rider will be as mentioned in circular Ref: Actl/1906/4
dated 8th October 2003 and Actl/2034/4 dated 13th
September 2005.

Premium waiver benefit option under critical illness rider:
this is an optional Benefit under regular premium policy
which may be opted in case of the following.
1. The critical illness under has been opted for, and
2. The sum assured under the basic plan is equal to the
critical Illness rider sum assured
3. The chosen accumulation period is such that the
premium payment ceases on or before the policy
48

anniversary at which the life assured completes 60
years (nearest birthday) of age in case the life assured
is diagnosed with any of the critical IIInesses covered
under the policy, the life total future premium (i. e.
premium for sum assured under the basic plan and the
premium policy is in full force. All there optional
rider benefit mentioned above shall be available
during accumulation period only.
Occupation extra: paln can be allowed to persons
employed in hazaedous occupation subject to charging
appropriate occupation extra for basic sum assured, TA
and CI rider sum assured the factor to be applied to each
Re.1/- per annum occupation extra premium under single
premium policies will be the same as applying to single
premium policies Table 48, ie., 8.30, 11.15 and 13.35 for
accumulation period 10,15 and 20 years respectively.
Paid-up & surrender vales (GSV SSV): In case of
regular premium policies, if after at lest there full year's
premium have been paid and any subsequent premium be
not duly paid, this policy shall not be wholly viod, but the
sum assured by it shall be reduced to such a sum, called
paid-up sum assured, as shall bear to the total number of
premiums originally stipulated in the policy. The policy so
reduced shall thereafter be fore from all liabilities for
payment of the within mentioned premium, but shall not be
entitled to the future bonuses. The existing vested
reversionary bonuses, if any, shall remain attached to the
reduced paid-up policy.

In the event of death of life assured during the
accumulation period, the reduced paid-up sum assured as
49

defined above, along with vested reversionary bonus, if
any, shall be payable. No survival benefit will be payable
for a reduced paid-up policy. Provided the life assured is
then alive, the vested bonuses and the reduced paid-up sum
assured as defined above shall be payable at the end of the
accumulation period.
















50

3. JEEVAN ANAND POLICY
JEEVAN ANAND LIFE INSURANCE POLICY BY
LIC (table: 149)
Features of plan

Jeevan Anand plan is the combination of whole life policy
and endowment insurance policy the plan provides the per-
decided S.A. and bonus at the end of the stipulated PPT,
but the risk cover on the life continues till death. This
policy is suitable for the people of all ages and social
groups. The policyholder will be benefited by giving
protection to their families from a financial setback that
may occur owing to their demise The amount assured if
not paid by reason of his death earlier will be payable at
the end of the endowment term where it can be invested in
an annuity provision for the rest of the policyholder's of
this plan is moderate premiums, high liquidity, saving
oriented.

Premiums are usually payable for the selected term of
years or until death if it occurs during the term period.
Accident benefit is available during engaged in hazardous
occupations attracting occupational extra.

Plan parameters
Age at entry: Min.18 yrs Max. 65 yrs.
PPT maturity age: Max. 75 yrs
Sum assured: Min. 1,00,000 Max. No. Limit
S.A. in multiples: 5000
Term: Min.5 yrs Max. 57 yrs
Mode of payment: YLY/HLY/QLY/SSS/MLY
51

Accident benefit: Incl. in. T.P.
Policy loan: yes
Housing loan: yes
Assignment: yes
Revival: yes
Surrender of policy: yes
Term rider: N.A.
CIR: yes

UNDERWRITING CNDITION
Form no: 300 (rev.)
Age proof: std/ NSAP- 1,2,3
Female lives category: I/II/III
Non-medical (Gen): Allowed
Non-medical (Prof): Allowed
Non-medical (special): Allowed
Actual sum assured: Basic SA
Risk coverage: SA+ Bonus
Dating back @ 8%: Allowed

BENEFITS
Maturity benefit: S.A. +Bonus + FAB, if any is at the end
of the premium paying term (PPT)

Death benefit:
If death occurs during the premium paying term S.A. +
Bonus +FAB, if any is payable and premium payment is
ceased. An extra amount equal to the S.A. is payable if
death occurs after the premium paying term. No bonus is
paid on death after the premium paying term.

Accident benefit: The double accident benefit is available
52

during the premium paying term and thereafter up to age
70. the premium for this has been built into the tabular
premium rate.

Example: Mr. Sharad Pawar 25 years, opts for jeevan
anand policy for 20 years with S.A. Rs.1 Lac. He has to
pay annual premium of Rs.5490/- on maturity, Mr. Sharad
Pawar will get Rs.1,98,000/- (S.A. + Bonus as per 2005
rates i.e. Rs.43 per thousand per annum which become 43
x 100 x 20 = 86,000/-). Even after the premium paying
term is over, risk cover continues till the death of Mr.
Sharad Pawar.

But if, Mr. Sharad Pawar dies at the age of 65 years his
nominee will get an additional amount equal to the S.A. i.
e. Rs.1 Lac in cash, Mr. Sharad Pawar dies during
premium paying term his nominee will receive Rs. 1Lac +
accumulated Bonus.









53

4. JEEVAN ANURAG POLICY
JEEVAN ANURAG LIFE INSURANCE POLICY BY
LIC
With profits plan (Table No. 168)
Feature of plan: Jeevan Anurag is a with profit 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 pre-
specified duration irrespective on whether the life assured
survives to the end of the policy tremor dies during the
term of the policy. In addition, this plan also provides for
an immediate payment of basic S.A amount on the life
assured during the term of the policy. This plan is not
allowed when occupation extra chargeable and to pregnant
ladies.

15 - days cooling-of period: if you are not satisfied with
the "term and conditions of the policy you may return the
policy to us within 15 days.

Paid up value: if at least three full year's premiums have
been paid in respect of this policy, any subsequent
premium be not duly paid, this policy shall not be wholly
void, but the S.A. by it shall be reduced to such a sum,
called the paid-up value, as shall bear the same ration to
the full S.A. as the number of premium actually paid shall
bear to the total number of premium originally stipulated
in the policy. The policy so reduced shall thereafter be free
from all liabilities for payment of the within mentioned
premium, but shall not entitled to the future bonuses.

54

Guaranteed surrender value: this policy can be
surrender for cash after the policy is kept in force by
payment of premiums for at least three years. The
guaranteed surrender value allowable under this plan for
all modes, except the premium mode will be equal to
30% of the premium paid excluding the premiums paid for
the first year and all extra premiums and the premiums
paid for optional / rider benefits. In case of single premium
mode, the guaranteed surrender value will be 90% of the
premiums paid excluding all extra premiums and the
premiums paid for optional/ rider benefits.

Critical illness rider benefit: critical illness rider benefit
will be available for an amount not excluding the S.A.
under the basic plan subject to overall cover of 5lakh under
all polices of the life assured with the corporation taken
together.

If premium waiver benefit is opted for then in case of
diagnosis by any of the critical illnesses condition covered
under the policy, the total future premiums in respect of
the policy will be waived S.A under such polices will not
exceed Rs.5lakh.

Plan parameters
Age at entry: Min.20 yrs (NBD) Max.60yrs (NBD)
Maturity age: Max.70 yrs. (NBD)
Term: Min.5 yrs for S.P & 10 yrs for regular Max. 25 yrs
Sum assured: Min.50,000 Max. No Limit
S.A in multiples: 5000
Premium paying: policy term or
Term (PPT): policy term-3
55

Mode of payment: YLY/ HLY/QLY/SSS/MLY and single
premium
Accident benefit: Allowed (with extra premium)
Policy loan: yes @ 10.5%
Housing loan: yes
Assignment: yes
Revival: yea
Surrender of policy: yes
Term rider: yes
CIR: yes

Underwriting condition
Form no: 300
Age proof: std/ NSAP-1 (WR 5Lac)
Female lives category: I/II/III
Non-medical (Gen): Allowed
Non-medical (Prof): Allowed
Non-medical (special): Allowed
Actual sum assured: 1.5 times of S.A
Dating back @ 8%: Allowed

BENEFIT
Maturity benefit: payment of the basic S.A at the start of
every year during last 3 policy years before maturity. At
maturity 40% of the along with reversionary bonus
declared from time to the full term and the terminal bonus
if any shall be payable

Death benefit: payment of an amount equal to S.A. under
the basic plan immediately on the life assured is paid to the
nominee. No. Premiums are payable thereafter. An amount
equal to 20% of the basic S.A. at the start of every year
56

during last 3 policy years is paid to the nominee. In
addition he will also get 40% of the basic S.A + Accured
Reversionary bonus for the full term & terminal bonus, is
any is also paid.

Accident benefit : accident death and disability benefit
will be available for an amount not exceeding the S.A
under the basic plan subject to overall cover of 50 lac
under all policy of the life assured with the corporation
taken together.
Example: Mr. Tushar Kapoor aged 35 years opted for
jeevan anuurag plan, S.A 2 Lac, for a term of 15 years. He
pays an annual premium of Rs.15,323/- if the policy is in
full force, Mr. Tushar Kapoor Will get 20% of S.A i.e.
Rs.40,000/- at the start of 31th, 14th & 15th policy year
and the balance 40% of S.A i.e. Rs.80,000 will be given at
the end of 15th year along with reversionary bonuses
declared from time to time for the full term, plus terminal
bonus, if any shall be payable. in case Mr. Tushar Kapoor
dies during 10th year his nominee will receive Rs.2 lac.

No premiums are payable thereafter Moreover the nominee
will get Rs.40,000/- at the start of 31th, 14th & 15th policy
year and on maturity Rs.80,000 + Reversionary Bonus +
terminal bonus, if any.




57


Some Other Policies are:-
LIFE INSURANCE POLICY LIST
1. Aam Admi Bima Yojana lic policy
2. Amulya Jeevan-I lic policy
3. Anmol Jeevan-I lic policy
4. Bima Bachat lic policy
5. Bima Nivesh 2005 lic policy
6. CDA Endowment Vesting At 18 lic policy
7. CDA Endowment Vesting At 21 lic policy
8. Child Career Plan lic policy
9. Child Future Plan lic policy
10. Educational Annuity Plan lic policy
11. Fortune Plus lic policy
12. Gratuity Plus lic policy
13. Group Critical Illness Riderlic policy
14. Group Gratuity Scheme lic policy
15. Group Insurance Scheme in Lieu Of EDLI lic
policy
16. Group Leave Encashment Schemelic policy
17. Group Mortgage Redemption Assurance Scheme
lic policy
18. Group Savings Linked Insurance Scheme lic
policy
19. Group Super Annuation Scheme lic policy
20. Group Term Insurance Schemes lic policy
21. Health Plus lic policy
22. JanaShree Bima Yojana (JBY) lic policy
23. Jeevan Aadhar lic policy
24. Jeevan Akshay-V lic policy
25. Jeevan Amrit lic policy
58

26. Jeevan Anand lic policy
27. Jeevan Anurag lic policy
28. Jeevan Bharati lic policy
29. Jeevan Kishore Jeevan Chhaya lic policy
30. Jeevan Madhur lic policy
31. Jeevan Mitra(Double CoverEndowment Plan) lic
policy
32. Jeevan Mitra(Triple CoverEndowment Plan) lic
policy
33. Jeevan Nidhi lic policy
34. Jeevan Pramukh lic policy
35. Jeevan Saathi lic policy
36. Jeevan Saral lic policy
37. Jeevan Shree-I lic policy
38. Jeevan Surabhi-15 Years lic policy
39. Jeevan Surabhi-20 Years lic policy
40. Jeevan Surabhi-25 Years lic policy
41. Jeevan Tarang lic policy
42. Jeevan Vishwas lic policy
43. Komal Jeevan lic policy
44. Market Plus I lic policy
45. Marriage Endowment lic policy
46. Money Plus-I lic policy
47. Mortgage Redemption lic policy
48. New Bima Gold lic policy
49. New Janaraksha Plan lic policy
50. New Jeevan Dhara-I lic policy
51. New Jeevan Suraksha-I lic policy
52. Profit Plus lic policy
53. Shiksha Sahayog Yojana lic policy
54. The Convertible Term Assurance Policy lic
policy
59

55. The Endowment Assurance Policy lic policy
56. The Endowment Assurance
57. Policy-Limited Payment lic policy
58. The Money Back Policy-20 Years lic policy
59. The Money Back Policy-25 Years lic policy
60. The Whole Life Policy lic policy
61. The Whole Life Policy- Limited Payment lic
policy
62. The Whole Life Policy- Single Premium lic
policy
63. Two Year Temporary Assurance Policy lic
policy












60




Ch 5.
Selling
technique









61

SELLING TECHNIQUE

After we were taught of the policies we had to start our work
to sell them. And learn the skills which were the main
objective of our training. For the same we were taught of
SPANCO.It is a smiley being introduced which tells us about
the different marketing skills it consists of 6 main steps which
were as follows:





SPANCO
62

1. Suspecting:
It is the first step. In this we have generate a list of people
whom we know and suspect that they may be interested to get
a policy. The list may consist of friends, relatives, neighbours
etc. Everyone who we may suspect that she or he would may
be interested to buy a policy.

2.Prospecting:
Next comes prospecting. This is a step in which we will filter
the list generated in the first step and take out the eligible
people from the list of suspected ones.

3. Appointment:
After prospecting the eligible people we would approach them
to get appointments and so that we can have a detailed
conversation regarding our products.

4. Negotiation:
Now we would have a detailed conversation with the
customer regarding our product, its features, benefits, etc. All
the details attached to our product are being discussed with
the customer.

5. Close the sale:
63

After negotiating we would close the sale by getting a cheque
from the customer n taking all the details regarding the form
from the customer.

6. Offers:
Now we would be leaving promising the customer to let him
know about our future products and offers duly.
This was all about spanco we worked on according to the
same and had achieved great success during our internship
process. We learn many things like approaching people,
getting appointments, negotiating with them....











64




Ch 6.
Comparison











65

Comparison
LIC of India Vs Private Insurance companies
LIC of India is rated among the top life insurance company in
India. There are more than a dozen insurance players in India.
But most of them are posting loss year after year. They cannot
see a breakeven point till 2015. Most prospective insurance
buyers are not aware of the below facts and financial figures.

You should always buy Life Insurance Policy from LIC of
India to plan a safe and secure future for your family. LIC of
India is largest insurance company in the world with 23
crores customers and more than 1.1 million agents. LIC of
India settles 2.21 claims per second with more than Rs.
6,74,514.78 Crs. worth of asset.

So when you buy insurance you should know the fact that
whether insurance company has a capacity to settle claim
quickly and in full amount unlike other insurance companies
who do not have capital reserve to pay in full....

Most Insurance companies are making big time loss
exception : LIC India

For the Year
( Fig in Crore)
From Inception till
2009
( Fig in crore)
Insurance
companies
2007-
08
2008-
09
2007-
2008
2008-
2009
ICICI Prudential
-
1395.06
-779.70 -2996.76 -3776.46
MAX NEW -156.93 -393.02 -609.74 -1002.76
66

YORK Life
BIRLA Sunlife -445.28 -702.14 -889.87 -1592.01
ING Vyasa -190.53 -194.50 -717.65 -912.15
AVIVA -202.49 -495.05 -667.49 -1162.54
HDFC Standard -243.51 -502.96 -688.35 -1191.31
TATA AIG -339.30 -565.24 -644.61 -1209.85
RELIANCE /
AMP Sanmar
-768.07
-
1084.91
-1305.17 -2390.08
KOTAK Life -71.87 14.34 -338.68 -324.34
BAJAJ Allianz -213.89 -70.68 -489.90 -560.58
MET LIFE 21.25 14.52 -144.20 -129.68
SBI Life 34.38 -26.31 4.73 -21.58
SAHARA Life 3.34 -18.15 -12.63 -28.73
SHRIRAM Life 5.58 8.11 17.26 25.36
BHARTI AXA -242.01 -417.48 -322.44 -324.75
FUTURE
GENERALI
-30.05 -255.94 -33.62 -289.56
IDBI FORTIS -25.53 -110.23 -25.53 -135.76
RELIGARE
AEGON
0.00 4.08 0 -23.79
CANARA 0.00 -202.07 0 -230.87
DLF 0.00 -44.46 0 -44.46
SUDI 0.00 -18.58 0 -19.65
Total
-
4259.97
-
5840.37
-9864.65 -15345.55
LIC of INDIA 844.63 957.35 776904.94 841272.87
Source: IRDA Annual Report 2008-2009 page no.76-77
67


LIC Client list : Balaji Telefilms, Dabur India Limited,
Federal Bank, HCL Technologies, i-flex Solutions, Infosys,
Kingfisher Airlines, Larsen & Toubro Infotech, NDTV, Patni
Computer Systems, Rediff.com, Shapoorji Pallonji Group,
Tata Consultancy Services Limited, Wipro, Reliance
Communications, Satyam Computer Services, STAR India
Network, TVS Motors.














68

Presentation made during the training:
LIC and PRIVATE Life insurance term plan
There are many term insurance plans from LIC and other companies, but
all of them have different premiums and features which confuses a
prospective customer to choose best term plan for him. So I am
presenting you a brief table of comparison from which you can judge.
Product
name
AR
Rider
CI
Rider
DR
Rider
WP
Rider
Tenure
(yrs)
Max
age
(yrs)
premium
LIC Amulya
Jeevan-1
No No No No 5-35 70 4,600
MetLife Met-
product
No No No No 10-35 70 5,459
HDFC
life
Term
Assurance
Yes Yes No No 10-30 65 12,344



Looking at the above comparison chat you would have got
an idea about the online term plans by the three companies.







69

CLAI M SETTLEMENT RATI O OF I NSURANCE
COMPANI ES
While deciding on a term plan, the biggest point which a
person concentrates is the claim settlement ratio.
I RDA report for 2009-2010
One important detail you should note down is that 8 out of
23 insurance companies have reported profits. LI C and
MetLife are amongst them.
CLAIM SETTLEMENT RATIO DATA FROM IRDA REPORT
2009-2010
Company Total
Claims
Claim
Settlement
Ratio
Claims
Paid
Claims
Rejected
Claims
Pending
LIC 677374 98.54% 653909 8227 9527
MetLife 1346 82.54% 1111 80 152
HDFC 3837 91.14% 3497 179 161






70



Ch 7.
Conclusions
and
Suggestions




71

CONCLUSIONS
1. LIC is a well renowned company people easily get
willing to invest.
2. LIC is not left behind in the present race of
advertisement.
3. Private insurers have restricted reach to the
customers.
4. LIC has vast market and very firm grip on its
traditional customers and monopoly of life insurance
products.
5. Bank assurance - that allows life insurers to
leverage on the risk product through bank network,
was adopted by private players. But LIC was also
not left behind as picking up majority stake in the
corporation Bank and large equity stake in the
Oriental Bank of Commerce.

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SUGGESTIONS
1. The no. of people holding health insurance policy
was very low and the reason behind this is that the
people are not awared of the difference between the
health and life insurance policy. So company should
work to make people aware of the same.
2. Majority of people consider the Insurance premium
paid by them as reasonable. This is not true. Agents
should work and clarify the people about the
difference between the two.








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Ch 8.
Annexure




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Brochures / Information Bookl Ets

 Product List L.I.C.
Newspapers / Magazines
 The Economic Times
 The Insurance Times
Websites
 www.licofIndia.com
 www.Irdaindia.org.com
 www.google.com