Lic

Published on May 2016 | Categories: Types, Research | Downloads: 60 | Comments: 0 | Views: 721
of 86
Download PDF   Embed   Report

Comments

Content

LIC OF INDIA

GENERAL INTRODUCTION

People in all values of life are faces with risk and contingencies an unexpected death, loss of goods due to theft and natural uncertainties, earthquake floods are some examples of the rise that every body on earth faces. A time passes life faces more dangers from both natural and ma made. Insurance is the best plan for surviving from such risky and

contingencies. Insurance does not avoid loss, but it compensates to some extent, the loss that arise from uncertainties.

Insurance is essentially cooperate effort under any insurance arrangement a large number of persons in persons in effect a to share a loss which a few of them are like to insure in future when the sharing is dome amongst a large no. of persons, the individual share remains fairly steady from year to year. Such association of persons for sharing anticipated losses may be brought about voluntarily by all participants or may be organized by a few individuals or by an insurance organizations.

The function of insurance in various is to protect the few against the heavy financial impact of anticipated misfortune by spreading the loss

~1~

LIC OF INDIA

among many who are exposed to the risk of similar nature while it is not possible to predict which individual amongst too many participants are likely to be the victims of future. It is often possible to forecast the loss which the groups a whole may suffer.

The sharing to such loss among the participants ensures that the victims are compensated for the loss suffered by them. As a consequence for heavy and uncertain loss to some is neutralized by the definite contribution of moderate amounts which every participant is required to make.

~2~

LIC OF INDIA

DESIGN OF STUDY
TITLE OF THE STUDY
CONSUMER BEHAVIOR TOWARDS LIFE INSURANCE OF INDIA OBJECTIVES OF THE STUDY

 To know the consumer behaviour towards LIC  To know the investment policy of LIC  To now the services of LIV  To know why investors selects LIC as their investment sector  To know the customers expectation SCOPE OF THE STUDY The scope contains collections of data from all the Insurance holders and viewers of the holders. Basic Assumption The assumption was that the insurance segment still requires sales promotion and it is only possible for upper higher groups.

~3~

LIC OF INDIA

Sampling Technique Questionnaires are the sampling technique for the research. The Questioners are both structures and open and were used as in instrument.

Contact Method A printed copy of questionnaires was distributed to the consumers visiting them in their houses and at the servicing centers at parking areas.

Plan to analysis The data collected was tabulated and percentages were determined the interpretations are presented in the form of charts. All interpretations made by me are realistic and factual.

PURPOSE OF LIFE ASSURANCE

1. For the purpose to housing loans For the purpose of housing loan, loan can be raised with the surrender value of the policy. So that while immediate financial needs are met,

~4~

LIC OF INDIA

Insurance protection continues policies are used as security for commercial loans.

2. Protection of life Saving through life insurance guarantee financial protection against risk of death of the policyholder. In life insurance on death, the fall sum assured is payable where as in other sang schemes only the amount saved.

3. Aid to thrift Life insurance encourages thrift long term saving can be made in a relatively painless manner because of the easy installment facility. The salary savings scheme popularly known as SSS. Provides a convenient method of paying premium each month through deduction from one’s salary. The employer remits the deducted premium to the LIC.

4. Business is of life assurance Life insurance also services business interest. Some companies may depend for their successful performance on the ability technical knowledge, experience power to plan and execute if successful of one or more individual and the premature demise of such individuals will result in loss of earning to the business firm. Such loss to be business firm can be avoided by insuring

~5~

LIC OF INDIA

such key men, the firm against possible loss due to the premature of such individuals. In the case of partnership of firms. 5. Tax relief There are certain tax concession of income tax allowed by the IT Act to encourage the habit to thrift and savings among the people. An insurance premium, the individual can have tax relief subjects to the specified limit by the finance Act time to time.

6. Savings Insurance can also be used as savings once an insurance arrangement is effected immediately an estate equal to sum assured is created for a policy holder. He has merely to maintain the estate by paying the periodical installment of the premiums as they fall due to the policy in force.

~6~

LIC OF INDIA

HISTORY OF LIFE INSURANCE In the early time men who engaged in trade by sea attempted to minimize losses which amongst a large number of persons who were similarly engaged. Naturally many ships were arrived safely in port and it was only a few that survived loss. The many who did not sufferer loss contributed to mitigate the sufferings of the few who did. So many goods followed from this arrangement that the traders adopted the idea in many lands and gradually they come into existence groups of men who specialized in managing the funds and studying the rates of loss which occurred in the different types of marine ventures. This was the beginning of marine insurance.

The evidence in available about crude form of marine contracts made by the Babylonians. Rhodesians and the Greeks about the middle of the third millennium BC. However, the early history of insurance is hidden in the mists of antiquity. The earliest available reference to some form of Insurance is found in the codes of Hammurabi and Manu (Manav Dharma Shastra). The team

YOGAKSHEMA is used in Rig-Vedas suggesting that some form of community insurance was practiced by the Aryans in India over 3000 years ago.

~7~

LIC OF INDIA

In India, Burial societies are known to have existed during the Buddhist period, which were invariably mutual in their character. The

village community came to the help of the families by building up house, protecting the children and apprenticing the boys in business.

LIC remained for a long time, largely in the lands of foreign companies but, with the intense of Nationalism that permitted Indians to enter the sector through 20 cent4rureis, Indian offices began to take their due where of the country’s business. From then onwards, Indian life insurance Business has never looked back and every passing year has witnessed a slow but a steady rise in the per-capita insurance of the country.

It was in the wake of freedom movement that such companies as the New India. Industrial and prudential, Jupiter, the Lakshmi, etc., came to be established. A further spurt in the formation of new companies was

Witnessed during Second World War when inflationary pressure tended to increase the volume of business written in the country. From then onwards, the Indian Insurance Business continuously progressed and every passing year witnessed a slow and steady rise in per-capita insurance in country. At the close of Second World War, the proportionate share of the

~8~

LIC OF INDIA

business written by the Indian insurers had increased to over 90% of the total new business written in India.

The Government began to exercise a closer supervision and control in matters of funds of expenditure and general management of insurance business in the insurance Act of 1938. The Department of Insurance under to authority of Superintendent of Insurance was established. This act was established amended in 1950. The controller of insurance currently is responsible for the administration of this act. The Early development of Insurance was spasmodic and was restricted mostly to fields other than life. Scientific Life Assurance is a heritage from England, where the first life policy, providing the temporary cover for a period of twelve months, was issued as early as Ad. “The Amicable Society” (1705) granted fluctuating sum on death till this society had accumulated sufficient funds to grant a fixed sum on death (1757). The development of mortality tables was a landmark in the history of life assurance. With this development, life assurance acquired a scientific character. The Equitable society, founded in 1762, was the first to be founded on scientific basis with premiums computed according to the age and period of insurance.

~9~

LIC OF INDIA

BACKGROUND OF LIC IN INDIA

In India, LIC had its beginning in 1870 when two British Life Corporations started in India. They first organized to effort to establish with the formation of Bombay Mutural life insurance Society Ltd. But, it was not extended largely. After a few years, it left to oriental Government security life Assurance Co. Ltd., to expand the business in organized manner all over the India. The Bharath and the Empire were established.

The Swedish Movement of 1950 saw the formation of several large companies such as the Hindustan Co- operative, The United India, The Bombay Life, The National, The Asian and the Indian Mercantile with the passing of the First Insurance Act in 1912, a measure control bean to be exercised by the Government. In the year 1955, approximately the Insurance office has so provident societies had been registered for transacting the Life Assurance Business in India. A few of these were foreign companies with their Head Offices outside India. In addition to these insurance, a large number other insurers who had registered themselves for transaction or had been taken over by the existing insurers.

~ 10 ~

LIC OF INDIA

During that period it was found out that many mall practices were prevalent among the insurance companies and the need to bring the insurance companies under a single fold was widely felt. Hence the Government of Indian decided to nationalize the Insurance Business.

NATIONALISATION OF INSURANCE INDUSTRY

The LIC Act (Act XXXXI of 1956) was passed by the parliament in June 1956 and it came into force of July 1 st, 1956. By this Act all the assets and liabilities apprenticing to the Life Assurance Business in India. Of all registered companies in Indian and outside the India, all registered Indian insurance were to be transfer to and vested in the LIC of Indian as from the appointed day. The LIC of India came into existence of September 1st 1956.

~ 11 ~

LIC OF INDIA

LIC’S ORGANISAITON STRUCTURE The Central office of LIC is situated at Mumbai, the Economic Capital of India. Its activities are decentralized further in 3 types. * The 7 zonal offices are situated at Mumbai, Delhi, Calcutta, Chennai, and Bhopal. Hyderabad and Kanpur respectively. * These zonal offices further decentralized into 100 divisional office and 2048 branches.

The corporation is headed by the Chairman. It will be assisted by LIC Board, which contains 15 members in various activities like investment planning, marketing, etc.

The Zonal office is headed by the zonal manager and zones advisory committee assists the zonal manager to conduct the working of each zone. Divisional manager is the in charge of each division and of each division and the assistant division manger helps him to monitor the activities of branch office.

Branch office is the independent cost center of corporation, which generates actual revenue. It is headed by the Branch Manager and assisted

~ 12 ~

LIC OF INDIA

by the Assistant Branch Manager, Administrative officers and Assistant Administrative Officers. LIC has wide network of branches in every hook and corner of the country spreading the gospel of insurance even in remotest rural areas.

~ 13 ~

LIC OF INDIA

What is life insurance? Life Insurance is a contract for payment of a sum of money to the person assured (or failing him/ her, to the person entitled to receive the same) on the happening of the event insured against. Usually the contact provinces for the payment of an amount on the date of maturity or at specified dates at periodic intervals or on unfortunate death, if it occurs earlier. Among other things, the contract also provides for the payment of premium periodically to the Corporation by the assured. Life insurance is universally acknowledged to be an institution which eliminates ‘risks’, substituting certainty for uncertainty and comes to the timely aid of the family in the unfortunate event of the death or of total permanent disability of the breadwinner. By and large, life insurance is civilization’s partial solution to financial uncertainties caused by untimely death.

~ 14 ~

LIC OF INDIA

Why is superior to other forms of savings? (i) Protection: Savings through life insurance guarantee financial protection against risk of death of the policy holder. In life insurance, on death, the full sum assured is payable (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable ii) Aid to thrift: Life insurance encourages ‘thrift’. Long term saving can be made in a relatively ‘painless’ manner because of the easy installment facility

premiums can be paid through monthly, quarterly, half-yearly or yearly installments). The salary savings scheme, popularly known as SSS, provides a convenient method of paying premium each moth through deduction from one’s salary. The employer remits the deducted to the LIC. The salary savings scheme can be introduced in an institution or establishment subject to specified terms and conditions. iii) Liquidity: Loans can be raised on endowment type & whole life Policies as per policy conditions on the sole security of a policy which has acquired a paidup value. Besides, a life insurance policy is also generally accepted as

security for even a commercial loan / housing loan.

~ 15 ~

LIC OF INDIA

(iv) Tax Relief: Tax relief in Income tax as available for amounts paid by way of premium for life insurance subjects to the Income Tax rules in force. Assesses can avail themselves of provisions in the law for tax relief. In such cases the assured in effect pays a lower premium for his insurance than he would have to pay otherwise. (V) Money when you need it: A suitable insurance plan or a combination of different plans can be taken to meet specific needs that are likely to arise in future, such as children’s education, start- in- life or marriage provision or even periodical needs for cash over a predetermined stretch of time. Alternatively, policy moneys can be so arranged to be made available at the time of one’s retirement from service to be used for any specific purpose, such as for the purchase of a house or for other investment. LIC pension plans also offer regular income in the form of annuity when you retire from active work or in later part of life at your choice leaving lump sum purchase price for your heirs. Subjects to certain conditions, loans are granted to policyholders for house buildings for purchase of flats.

~ 16 ~

LIC OF INDIA

VARIOUS PLANS OF INSURANCE

The majority of the insurance plans are offered on both ‘with profits’ ‘without profit basis the important plans of insurance are

KNOW YOUR LIFE INSURANCE Life insurance made its debut in India well over 100 years ago. Today, it is the widely accepted as one of the most attractive financial instruments in an individual’s portfolio that provide on assurance of security with attractive returns. What follows is an attempt to acquaint readers with some of the concepts of life insurance with special reference to LIC. It should, however, be understood that the following information is by no means an exhaustive description of the terms and conditions of an LIC policy or its benefits or privileges. For more details, please conduct any of our Branch or divisional offices. Any LIC agent will be glad to help you choose the life insurance plan to meet your needs and provide other necessary assistance.

~ 17 ~

LIC OF INDIA

Who can buy a life insurance policy? Any person who has attained majority and is eligible to enter into a valid contract can take out a life insurance policy for himself/herself and for those in whom he/she has insurable interest. policies can also take out, subject to certain condition on the life of one’s spouse or children. While underwriting proposal, factors such as the state of health of the life to be assured the proponent’s income and other relevant factors are considered by Corporation.

Medical and Non-medical Schemes Life insurance is normally offered after a medical examination of the life to be assured. However, to facilitate greater spread of insurance and also as a measure of relaxation, subject to certain conditions.

With Profits and Without-Profits Plans An insurance policy can be ‘with’ or ‘without’ profit. In a With-Profit Policy, bonuses declared, if any, after periodical valuations are allotted to the policy and are payable along with the contracted amount at the time of the final claim payment. In a Without Profit Policy, only the contracted

amounts are paid. Without any addition. Under some new plans guaranteed additions & Loyalty Addition are paid in ‘lieu of bonuses.

~ 18 ~

LIC OF INDIA

Keyman Insurance Keyman Insurance is taken by a business firm on lives of key employees(s) to protect the firm against the financial loss which may occur owing to the premature demise of the Key employees. Plans marketed by Life Insurance Corporation of India (Plans in force as at 1.10.2003) LIC offers a basket of schemes to meet the various needs of individual and his family.

I. Basic Life Insurance Plans

1) Whole Life Assurance plan: A low cost insurance plan where the Sum assured is payable on the death of the life assured, wherever it occurs.

2) Endowment Assurance Plan: Under this plan the sum assured is payable on maturity or on death of the life assured, if earlier.

~ 19 ~

LIC OF INDIA

3) Jeeven Anand: This is a unique with profits plan which combines the features of the Endowment and whole Life Plans. This basic sum assured plus accrued bonus is payable to the policyholder on his survival till the end of the premium paying term. An additional sum assured is payable to the nominee on death of the Policy holder after expiry of premium paying term. On dead the premium paying term, the basic sum assured plus accrued bonus is payable to the nominee and the policy comes to an end.

~ 20 ~

LIC OF INDIA

II. Term Assurance Plans

1) Anmol Jeevan-I : This is a pure Term assurance plan for terms varying from 5 to 25 years and provides for payment of Sum Assured on death of policy holder during the term of the policy.

2) Two-Year Temporary Assurance Plan: Term assurance for period 2 years is available under this plan. the sum assured is payable only on death of the life assured during the policy term 3) Convertible term Assurance Plan: The plan provides for term assurance from 5 to 7 years with an option to covert to a Limited payment whole life policy or an Endowment Assurance Policy without having to undergo fresh medical examination (I) the option for conversion may be exercised at anytime during the specified term except during last 2 years provided the policy is in full force.

~ 21 ~

LIC OF INDIA

4) New Bima Kiran : In Additions to return of premium paid, this plan provides for Loyalty addition if any, in-built lf accident cover and a Term cover after maturity, if the Policy is in full force on the date of maturity.

~ 22 ~

LIC OF INDIA

III. Specific Plans for children

Various children’s plans are available, viz. Children’s Deferred Endowment Assurance Jeevan Balya, Komal Jeeven and Jeeval Kishore. Jeevan Sukanya is a plan specifically designed for female children.

IV. Pension Plans: New Jeevan Akshay-I: Single Premium immediate annuity. New Jeeven Dhara-I & new Jeevan Suraksha –I: deferred annuities. The annuitant has five options of annuity payment to choose from including annuity for life with return of purchase price on death. Risk cover by way of Term rider option available. Premiums paid under new Jeevan Suraksha-I up to Rs. 10,000/- are exempted form income tax undersection 80CCC.

~ 23 ~

LIC OF INDIA

V. Plans for Handicapped Dependants

1) Jeevan Aadhar: This is a limited payment whole life policy with guaranteed addition at the rate of Rs . 100/- per thousand sums Assured p.a. where the claim amount is paid partly in a lump sum and partly in the form of an annuity. Income Tax Act, 1961 is available.

2) Jeevan Vishwas this is an Endowment type plan designed for handicapped dependants whose degree of handicap may not fulfill the definitions of disability laud down for the Jeevan Aadhar Plan. The benefit is payable partly in a lump sum and partly in the form of an annuity (pension). The plan also provide for Guaranteed and loyalty additions.

~ 24 ~

LIC OF INDIA

VI. Other Plans 1) Mortgage Redemption: Suitable for borrowers repaying a loan in installments as it ensures that the outstanding loan is repaid in the event of the borrower’s death.

2) Bhavishya Jeevan: A special plan ideally suited for professionals Film Actors, Artists etc. with a limited span of high income.

3) New Jana Raksha: Ideal for people with no regular income. It provides for option of premium holidays up to 3 years during witch period death cover will be variable from the firs unpaid premium, provided at least 2 full years premiums have been paid.

4) Fixed Tem (Marriage) Educational Annuity: An ideal plan for making provision for education, start-in-life or marriage of children. Claim/Annuity is after expiry of policy term.

~ 25 ~

LIC OF INDIA

5) Money Back Plans: Besides providing life cover during the term of the policy, survival benefits linked to sum assured during the term of the policy will be available.

6) Jeevan Surabhi: A money Back plan where premiums are payable for a limited period, with periodical increases in insurance cover.

7) Jeevan Rekha: This plan is a combination of a whole life and Money Back plan 10% of sum assured is payable on survival after every five years from the date of commencement. sum assured at any point of time without deduction of survival benefit paid earlier.

8) Jeevan Samriddhi: This is a money Back type plan with provision for Guaranteed Addition of Rs.65 per thousand sum Assured and Loyalty Addition, if any, payable on maturity or death earlier. The plan is available for terms 12, 15, 20, 25 years.

~ 26 ~

LIC OF INDIA

9) Jeevan Saathi: A double cover joint Life Endowment Assurance plan for husband and wife.

10) Jeevan Saathi: An ideal plan to provide for a child’s higher education even during or after of policy holder.

11) Jeevan Mira: A Double-or Triple risk cover Endowment Assurance plan providing for twice or thrice the sum assured payable on the death of the life assured during the policy.

12) LIC’s Jeevan Shree-1: A limited payment Endowment Assurance plan with Guaranteed Additions for first five years and bonus additions thereafter. A policy designed for short careerists, professionals and agriculturists.

13) Asha Deep-II: The plan provides, besides death and maturity payments, contingent benefits in case the life assured suffers from any of the four defined ailments.

~ 27 ~

LIC OF INDIA

14) Jeevan Asha-II: The plan provides, besides death and maturity benefits, payment towards the cost of certain surgical procedures and periodical survival benefit payment. There is also a provision for Guaranteed Additions @ Ra.70 per thousand S.A

15)Jeevan Bharati: Money Back plan exclusively for ladies with Guaranteed Addition for first five years and bonus there after with additional benefits as female critical illness benefit and congenital disability benefit.

16) Varishtha Pension Bima Yojana: A Government subsidized pension scheme for senior citizens with Assured Return of 9% p.a. payable monthly.

17) Bima Nivesh Triple Cover: A singe premium five and ten years plan with compounding guaranteed additions of rs.60 per thousand S.A payable on death or maturity.

~ 28 ~

LIC OF INDIA

INFORMATION TECHNOLOGY IN LIC Life Insurance Corporation of India is of the very first and largest users of IT in terms of hardware and in-house developed software. it is forefront in deriving optimum benefits of latest technological advancements for better and efficiency customer servicing.

1. 2048 Branches are equipped with Front End Application programmers Modules conversing all policy servicing aspects to give prompt service to our customer from introduction of policies, acceptance of premium, revival, loan, alterations, etc. up to final claims settlement.

2. LIC has wide Area Network covering 1801 Branches. This has helped its customer to pay his premium or get his policy status report as well as quotations for revival, loan, surrender, etc. from any of the branches to the network.

3. LIC has its own website www.licindia.com which is very attractive and user friendly. Customer gets policy status report on-line as well as knows about L I C’s products, services, branch office address, etc. He can get information about L I C’s Grievance Redressal machinery and can take benefit of other features by NRI etc.

~ 29 ~

LIC OF INDIA

4. LIC has tied up with eight banks and three service providers to give online premium payment facility in all cities covered under its network.

5. LIC has installed about 150iosks at prominent places across the country given information about its products, service and customers policy status report. It has provided IVRS at 59 locations for routine queries of the customer.

6. LIC has set up Info-Centers in Mumbai, Pune, Bangalore, Kolkatta, Delhi, Hyderabad, Chennai, Ahmedabad which are equipped with state of fart technology and manned by trained persons to give any information regarding life insurance products, suitable plans for every customers and need, etc.

~ 30 ~

LIC OF INDIA

Some of the projects being undertaken this years are:

1. Web enabling various policies servicing on our website and providing value services on mobile devices to out customers and filed force.

2. Adopting mobile technology for enhancing promptness and scope of customer service from any branch.

3. Installation of data warehouse and providing data mining tools for enhancement of quality of service level product development and other CRM activities.

4. Expansion of internet premium payment services by adopting use of smart card, credit card.

~ 31 ~

LIC OF INDIA

PERFORMANCE OF LIC The total premium from new and existing policies has shown in the table over the years. Table No.1.1 Table 1.1
Year
(Rs. in crores)

1957

1970

1980

1990

2000

2001

2002

2003

2004

88.6 5

97.5 5

260.4 2

875.3 5

22,805.8 0

27,879.7 6

39917.8 8

49256.4 0

~ 32 ~

LIC OF INDIA

Investment in Welfare Activites

Table No. 1.2
Year
(Rs. in crores)

1957

1970

1980

1990

1999

2000

382

1700 6534 26,475

1,20,44 5

1,31,54 9

2001 1,39,92 6

2002 1,7337 0

2003 2,1347 7

2004 2,56,105

~ 33 ~

LIC OF INDIA

Claims Settlement Operation Table 1.3
Claims Intimated Claims Settled during the year [ including the claims return back] Claims outstanding at the end of the year

Year 2001-02 2002-03 2003-04 2004-05

Number in lakhs 86.99 96.53 103.46 114.90

Amount in crores 14358.55 16953.95 19596.11 23563.62

Number in lakhs 87.67 96.91 103.53 114.91

Amount in crores 14519.25 17035.81 19607.20 23560.66

Number in lakhs 0.61 0.22 0.15 0.14

Amount in crores 273.55 191.49 173.91 176.86

~ 34 ~

LIC OF INDIA

LIC’s Socially Oriented Investments – Some Highlights Table 1.4
(Rs. In crores)

Total Investment Central Govt State Govt & Other Govt Electricity Housing Water Supply & Sewage State Road Transport Corporation Loans To Industrial Estates Loans To Sugar Corporation Development Authorities Roadways, Port Railways Power Generation Municipality Total

31-3-99 56185 12928 10591 1427 2508 671 45 37 1 25 801 4 98003

31-3-00 70533 14156 11931 158854 2997 736 45 37 1 85 1478 4 117888

31-3-01 85181 17877 12402 17998 3657 784 45 37 1 325 1615 4 139926

31-3-02 109938 21463 13447 19054 4000 893 45 37 1 681 3797 14 173370

31-3-03 137276 28988 14508 19944 4420 1358 45 37 1 781 6105 14 213477

31-3-04 166939 37402 14805 20694 7111 1373 45 37 1 1272 6412 14 256105

~ 35 ~

LIC OF INDIA

Capital Structure of LIC Table No. 1.5 Particulars
Equity Capital Reserves & Surpluses Net worth Total income Profit before tax Profit after tax Dividend Earning Per share

2001-02
749.50 6636.50 7372.20 8816.40 1832.16 1476.60 50% 19.66

2002-03
749.90 7861.20 8354.10 10136.40 2306.30 1801.10 55% 23.88

2003-04
749.96 8863.30 9613.26 9853.75 1882.45 1674.73 50% 22.35

~ 36 ~

LIC OF INDIA

AN OUTLOOK The aim of marketing is to meet and satisfy the target customers needs and wants. But getting to know your customers has never been a simple job. Customers may state their needs and wants but act otherwise. They may not be in Touch with their deeper motivations. They may respond to influences that change their mind at the last minute. Nevertheless, marketers must study their target customer’s wants, perceptions, preferences and shopping and buying behavior. Such as study sill provide clues for developing new products, product features, prizes channels, messages and other marketing mix elements. This chapter will explore the buying dynamism of consumer in a detail manner.

~ 37 ~

LIC OF INDIA

A consumer-An Overview The term consumer is typically used to refer to someone who regularly purchase from a particularly store are a company. thus, a person who. Shops at any store or use a particular pen is viewed as a customer of these firms. The term consumer more generally refers to any one engaging in any of the activities used in our definitions of consumer behavior. Therefore, a customer is defined in a terms of a specific firm while a consumer is not. The traditional viewpoint has been to defined consumer strictly in terms economic and services. This position holds that consumer is potential purchase of products and services offered for sale. This view has been broadened over time so that at least some scholars now do not consider a monetary exchange essential to the definitions consumers. This change implies that a potential adopter of service or even philosophies or ideas can also be encompassed by the definitions. Consequently, organizations such as the Indian Dental Association, UNICEF, and foster parents plans, as well as religious and political groups can view their various publics As “consumers”.

~ 38 ~

LIC OF INDIA

The rational for this position is that many of the activities that people engage in regarding commercial products and services. At present out

attention will be directed. Towards ultimate consumers, those individuals who purchase for the purpose of individual or household consumption. Some have argued that studying ultimate consumers also reveals much about industrial and intermediate buyers and others involved in purchasing for business firms and institutions. While not denying this, we must recognize that much industrial purchasing behavior is unique because it often involved different buying motives and the influence of a large variety of people. For the sake of simplicity we will focus only on the ultimate consumer behavior and ill not become involved in drawing comparisons with industrial purchasing situations.

The most commonly through of consumer situation, is that of an individual making a purchase with little or no influence from others. However, in some cause a number of people can be jointly involved in a purchase decision. For example planning a vacation or deciding on a new car involved an entire family. In other cases the purchaser may just be acquiring a product for some one else who has asked for a certain item. These situation suggest that people can take on different roles in what we

~ 39 ~

LIC OF INDIA

have defined consumer behavior. That table below presents one way to classify these roles.

~ 40 ~

LIC OF INDIA

SOME CONSUMER BEHAVIOUR ROLES Role Initiator Description The individual who determines that some need or Want is not being met and authorizes a rectify the Situation. Influence A person who by some intensational or Unintentional word or Action influences that Purchase decision, the actual purchase, and/or the Use of the product or service.

Buyer

The individual who actually makes the purchase Transaction.

User

The person most directly involved in the Consumption or use of the purchase

~ 41 ~

LIC OF INDIA

Some purchase situations involve at least one person in each these roles, while in other circumstances, a single individual can take on several roles at the time. For example, wife (initiator and influencer) may ask her husband (buyer) to pick up a box up a box of chocolates on his shopping trip because their daughter (user) said she wanted it. At another time the husband could act as the initiator, buyer and user by purchasing a health club membership for himself.

What is consumer behavior? Often the situations in which we find ourselves play a large part in determining how we behave. Students, for example, act differently in a classroom that they do when they are in a stadium watching a cricket match. The same holds true of buying behavior. You might get you hair cut because of an upcoming job interview. On spring break you might buy a souvenir that seems very strange when you got home. For a close friend’s wedding gift, you might buy a fancier branch of small appliance than you would buy for yourself. These are all example of situational influences, temporary forces associated with the immediate purchase environment that effect behavior. Situational influence tends to be less significant when the

consumer is very loyal to a branch and when the consumer is very loyal to a branch and when the consumer is highly involved in the purchase. However

~ 42 ~

LIC OF INDIA

it plays a major role in buying decisions. The five categories of situation are explained below.

Why study consumer behavior? Understanding the reasons for studying a discipline enables new to better appreciate its contributions. Therefore this section presents a

justification for the time and effort that the reader will expend in learning about consumers.

Significance in daily lives: In a general case the most important reason for studying consumer behavior is the significant role it plays in our lives. Much of our time is spent directly in the market place, shopping or engaging in other activities. A large amount of additional time is spent thinking about products and services, talking to friends about them and seeing or hearing advertisements about them. In addition. The goods we purchase and the manner in which we use them significantly influence how we live out daily lives. These general concerns alone are enough to justify our study. However, many seek to understand the behavior of consumers for what are thought to be more immediate and tangible reasons.

~ 43 ~

LIC OF INDIA

When Consumers buy? – The time dimension: Marketers should be able to answer at least two time related questions about consumer buying: • Is it influenced by the season, week, day or hour? • What impact to past and present events have on the purchase decision of this mobility varies according to the rigidity of social stratification in a given society.

SOCIAL FACTORS: A Consumer’s Behavior Is Also Influenced by Such Social Factors as Reference Groups, Family and Roles and Statuses.

REFERENCE GROUPS: Many groups influence a person’s Behaviour. A person’s references groups consists of the people that have a direct (face to face) or indirect influence on a person are called attitudes or behavior. Groups having a direct influence on a person are called MEMBERSHIP GROUPS. These are groups to which the person belongs and interacts. Some are primary groups such as family, friends, neighbors and co-workers, with whom the person interacts fairly continuously. Primary groups tend to of this mobility varies according to the rigidity of social stratification in a given society.

~ 44 ~

LIC OF INDIA

SOCIAL FACTORS: A Consumer’s Behavior is also influenced by Such Social Factors as Reference Groups, Family and Roles and Statuses.

REFERENCE GROUPS: Many groups influence a person’s behavior. A person’s references groups consists of the people that have a direct (face to face) or indirect influence on a person are called attitudes or behavior. Groups having a direct influence on a person are called MEMBERSHIP GROUPS. These are groups to which the person belongs and interacts. Some are primary groups such as family, friends, neighbors and co-workers, with whom the person interacts fairly continuously. Primary groups tend to

Reference group influence changes as products pass through the product life cycle. When a product is first introduced, the decision to buy it is heavily influenced by others. In the market growth stage, group influence is strong on both product and others heavily influence brand choice, in the product maturity stage, brand choice but not product choice.

~ 45 ~

LIC OF INDIA

Family: Family members constitute the most influential primary reference group. The family or orientation consists of ones parents. From parents a person acquires an orientation towards religion, politics and economics and a sense of personal ambition, self-worth and love. Even if the buyer no longer interacts very much with his parents, the parent’s influence on the buyer’s behavior can be significant. In countries where parent’s live with their grown children, their influence can be substantial.

A husband-wife involvement varies widely by product category. The wife has traditionally acted as the family’s main purchasing agent, especially for food, sundries and staple-clothing items. This is changing with the increased number of working wives and the husbands doing more family shopping. Convenience goods marketers would me a mistake to thing of women as the main or only purchasers of their products.

~ 46 ~

LIC OF INDIA

Husband Dominant Wife Dominant

: Life Insurance, Automobiles, Television etc : aching machine, Carpeting, furniture Kitchenware, etc.

Equal

: action, housing, outside entertainment.

Roles and Status: A person participants in many groups through like,-family, Clubs, organizations etc. the persons position in each group can be defined in terms of roles and status. Each than sales manage and a sales manager has more status then an office clerk. People choose products that communicate their role and status in society. Thus company presidents drive Mercedes, wear expensive suits and drink chives regal scotch. Marketers are aware of the status symbol potential of products and brands. However, status symbols vary for social classes and also geographically.

PERSONAL FACTORS: Buyer’s decisions are also influenced by personal characteristics, notably the buyer’s age and life cycle stage, occupation, economic circumstances, life styles and personality and self-concept.

~ 47 ~

LIC OF INDIA

AGE AND LIFE CYSLE STAGES: People buy different goods and services over their life time. They eat food in the early years, most foods in the growing and mature years and special diets in the later year. recreation is also age related. People’s taste in clothes, furniture and

Consumption is also shaped by the stage of the family life the cycle Nine stages of the family life cycle are listed in table 3.3 along with the financial situation and typical product interest of each group. Marketers often choose life-cycle groups are their target market.

PERSONALITY AND SELF –CONCEPT Each person had distinct personality that will influence his or her buying behavior. By personality, we mean the person’s distinguishing

psychological characteristics that lead to relatively consistent and enduring responses to his or her environment. Personality is usually described in terms of such traits as self-confidence, dominance, autonomy, deference, sociality, defensiveness and adaptability.

Personality can be a useful variable in analyzing consumer behaviors provided that personality types can be classified and that strong correlation’s

~ 48 ~

LIC OF INDIA

exist between certain personality types and product or brand choices. For example, a computer company might discover that many prospects have selfconfidence, dominance and autonomy; this suggests using Therese appeals in advertising their computer.

The Objective of the Purchase: The intend or reasons for a purchase affects the choice made. We are likely to behave very differently if we are buying a product for a gift as opposed to buying the same product for our personal use. When purchasing a wristwatch, a consumer may be most interested in one that provides accurate time at a reasonable price. However that appearance of the watch bought as graduation present can be very effective.

A market must under stand the consumer’s objectives in using the product in the order to design an effective marketing mix. For example, the failure by most watch maker’s appeal to the functional, non-gift watch market is what allowed Timex to be so successful with its reasonable price product.

~ 49 ~

LIC OF INDIA

Conditions under which consumers Buy-States and Moods Some times consumer’s arte in temporary state that influences their buying decision. When you arte ill are rushed, you may be willing to wait in line or you do not take the time or care that a particular purchase deserves.

Moods can also influence purchases.

Feelings such as anger or

excitement can result in purchasers that otherwise would not have been made. In the excitement atmosphere of a roc concert, for example, you might pay more for a commemorative T-shirt than you would under normal circumstances. Sales people must be trained to recognize consumer’s

mopeds and adjust their presentation accordingly.

PSYCHOLOGICAL FACTORS: A person buying choice is further influenced by four major psychological factors.

~ 50 ~

LIC OF INDIA

Motivations: A person has many needs at any given time. Some needs are

biogenic. They arise from physiological states of tension such as hunger, thirst, discomfort, etc. other needs are psychogenesis. They arise from

psychological states of tension such as the need for reorganization, esteem or belonging.

Most psychogenesis needs are not intense enough to motivate the person to act on them immediately. A need becomes a motive with its need that is sufficiently pressing to derive the person to act. Satisfying the need reduced the felt tension. Psychologists have developed theories of human motivation. Three of the best-known theories are:

Perception: A motivated person is ready to act. How the motivated person

actually acts is influenced buy his or her perception of the situation. If any person might see a fast talking refrigerator sales person as aggressive and insincere. Another shopper might see the same sales person as intelligent and helpful.

~ 51 ~

LIC OF INDIA

Briefs and Attitudes: Through doing and learning, people acquire beliefs and attitudes; these in turn influence their buying behavior.

Attitudes head people to behave big a fairly consistent way towards similar objects. People do have to interpret and react to ever object in a fresh way. Attitudes economics on energy and thought. For this reason, attitudes are very difficulty to change. A person’s attitude settles in to a consistent

pattern, and to change a single attitude may require major adjustments in other attitudes. Thus a company would be well advised to fit this product in to existing attitudes rather than to try and change people’s attitudes.

We can now appreciate the many forces acting on the consumer behavior. A person’s purchase choice is the result of the complete interplay of cultural, social, personal, and psychological factors. Other factors are subjected to marketer influence and clue the marketer on how to develop product, price, place, and promotional and physical distribution to attract strong consumer response.

~ 52 ~

LIC OF INDIA

PROCEDURE With reference to scope of study LIC is the premier financial organization with a wide network of branches and field force. LIC is

mobilizing huge funds and utilizing them for people welfare. It is necessary to have about the public opinion the points stated in supra and hence a survey questioner us framed keeping the above points in mind on their question are generated.

As an outset a person who wants to save may select different means hence question number 2 is framed. If a person wants to purchase a life insurance policy the object should be very clear hence it is necessary to know this object for that question number 3 is framed.

The motive force which is responsible to purchase a life insurance policy may be once won interest are he may be advised to take a life insurance policy are succumbed to the pressure from others hence question 4 is framed.

The product range, their awareness level in the public and identification of various products offered by LIC can be identified by an

~ 53 ~

LIC OF INDIA

individual shows the effective marketing strategy of the organization. Hence question number 5, 6, 7 are framed.

For any organization after sales, service is the priority area, In LIC, right from central office to branch office a separate department called policy servicing is established. However the era of customers delight, customer surprise and customer is king or god. It is necessary to have the rules of a customer about the service offered by the LIC is sufficient. Hence Question 8 is framed.

The field force of an organization is the feed back carries as they are responsible for selling of the products. In particularly selling of the

Insurance policy. The filed force is expected to facilitate the maximum service after the sales. Hence Question 9 is framed.

Further emphasizing, the need for the advertising and the public relation, the achievements of organization are to be essentially highlighted in public. Hence Questions 10,11,12,13 and 14 are framed.

~ 54 ~

LIC OF INDIA

Some times the procedure followed by LIC may not satisfy a policyholder. Hence question 15 is framed to know that how a policyholder feels about this procedure.

Question 16 gives the most important aspects that are competition in insurance sector. The public response will essential whether the competition is required or not.

Question 17 is framed to know the expectation of the policyholder on opening of life insurance sector.

It is already said that LIC funds are control funds and are invested as per the provision of LIC Act 1956 (section 27 A). Hence interest yield is comparatively lower. If a competitor is allowed to invest freely to earn more returns and the imposition of investment on LIC’s funds tend to continue. It will be unfair game. Hence public is sought in this contest also.

An offer is made under question 19 to the public regarding the type of products that they are expecting in the from of insurance. As the most successful financial institution in the country, the competition would like to

~ 55 ~

LIC OF INDIA

stay in the market as leader. Hence question 20 is framed to invite the suggestions from the public.

SURVAY SPECIAL

Suggestions from the respondents are called about a product they expect and the measure to be taken by LIC to stay in the competition as the market leader. These valuable suggestions are quoted under the head suggestions.

~ 56 ~

LIC OF INDIA

TABLE SHOWING THE BEST WAYS OF INVESTMENT

TABLE NO. 2.1 -------------------------------------------------------------------------------------------Responders Bank LIC UTI Other Sauces 1 Total

---------------------------------------------------------------------------------------------------------------------------------

Employees

12

15

3

3

---------------------------------------------------------------------------------------------------------------------------------

Professionals

16

13

1

2

32

---------------------------------------------------------------------------------------------------------------------------------

Business

6

6

3

2

17

---------------------------------------------------------------------------------------------------------------------------------

Others

7

10

2

1

20

---------------------------------------------------------------------------------------------------------------------------------

Total

41

44

9

6

100

-------------------------------------------------------------------------------------------The above table shows that 44% of samples feel that investment in LIC is the best way of investment as against 41% banks 9% UTI and 6% in other sources.

~ 57 ~

LIC OF INDIA

The chart indicates that 44% of the respondents are willing to invest their money in LIC. This is because of the security of capital and it mainly covers the uncertain risk arising our if their life and added advantages is easy liquidity after contingency has happened.

CHART SHOWING THE BEST WAYS OF INVESTMENT Chart No. 2.1 16 14 12 10 8 6 4 2 Other Sources 0 Employees Professionals Business Others

Bank

LIC

~ 58 ~

UTI

LIC OF INDIA

Table Showing Reason to purchase Insurance Policy Table 2.2 Options Savings Income Tax Risk Cover Family Provision Total Employees 10 8 10 3 31 Professionals 11 8 12 1 32 Business People 6 3 5 3 17 Others 6 5 3 6 20 Total 33 24 30 13 100

This table shows that public are purchasing LIC units 33% of investors are investing to save 30% are investing to risk cover 13% are investing to make family provision and remaining 24% are investing to avoid income tax. The chart indicates 63% of the respondents re purchasing an LIC policy because of savings and risk cover. Because of growing However

industrialization pollution are adding risks to the human life.

taking a policy for savings, income tax & family provision are coincidental.

~ 59 ~

LIC OF INDIA

THE CHART SHOWING REASONS TO PURSHASE AN INSURANSE POLICY Chart no.2.2

12 10 8 6 4 2
Employees Professionals Business people Others

Savings Income Tax Risk Cover Family Provision

0

Most psychogenesis needs are not intense enough to motivate the person to act on them immediately. A need becomes a motive with its need that is sufficiently pressing to derive the person to act. Satisfying the need reduced the felt tension. Psychologists have developed theories of human motivation. Three of the best-known theories are:

~ 60 ~

LIC OF INDIA

TABLE SHOWING BASICS FOR PURCHASING INSURANCE POLICY TABLE NO 2.3 Respondents Employees Professionals Business People Others Total % Own Interest 20 21 10 12 63 Through advise 4 5 5 3 17 From pressure 7 6 2 5 20 Total 31 32 17 20 100

The above table showing that 63% of responders have purchase LIC AS THEIR OWN INTEREST 20% HAVE PURCHASED POLICY pressure from others and 17%purchase policy through advice. The chart indicates

60% have purchased an LIC at their own interest that means people are aware of various life risks and a solution to safeguard them. It shows the image of LIC in the minds of individual even though the effect of LIC more but some responders are taken LIC through advice and from pressure.

~ 61 ~

LIC OF INDIA

CHART SHOWING BASICS FOR PURCHASING INSURANCE POLICY CHART NO.2.3

35 30 25 20 15 10 5 OWn Interest From Pressure Through Advise Total 0

Employees Professionals Buisiness People Others

~ 62 ~

LIC OF INDIA

TABLE SHOWING WHETHER VARIOUS PLANS OFFERED BY LIC ARE SUFFICIENT

Table no.2.4

Options Yes No Total

Employees Professionals 15 16 31 17 15 32

Business People 9 8 17

Others 10 10 20

Total 51 49 100

51% of the respondent’s are ware of LIC’s committers opened to serve better. The formed divisional policy holder council and zonal claim review committee. To serve better and remaining 49% are unaware of this development. From this we find that hold of the respondents is aware about various committees are opened to serve better remaining unaware of this fact. It says that more people proffer to alternate the procedure adopted by LIC.

~ 63 ~

LIC OF INDIA

SHOWING WHETHER VARIOUS PLANS OFFERED BY LIC ARE SUFFICIENT Chart No.2.4

18 16 14 12 10 8 6 4 2 0 Yes No Business People Others Employees Professionals

~ 64 ~

LIC OF INDIA

TABLE SHOWING CUSTOMERS AWARENESS TOWARDS LIC’S SOCIAL WELFARE SCHEME FOR WEAKER SECTION Table No.2.5

Options Yes No Total

Employees Professionals 10 21 31 16 16 32

Business People 9 8 17

Others 8 12 20

Total 43 57 100

57% of the surveyed are unaware of the fact that granting of free insurance cover offered by LIC to the weaker sections of the society in association with state and central government only 43% are unaware of this fact. It is sorry to say that many customers are un away of LIC social

welfare scheme for weaker section of the society. It is necessary for LIC to give wide publicity. So that both weaker sections has well as the other people can appreciate there offer.

~ 65 ~

LIC OF INDIA

GRAPH SHOWING CUSTOMERS AWARENESS TOWARDS LIC’S SOCIAL WELFARE SCHEME FOR WEAKER SECTION

Chart No. 2.5

25

20

15

10

Yes No

5

Professionals

Employees

Business People

~ 66 ~

Others

0

LIC OF INDIA

TABLE SHOWING CUSTOMERS OPINION ABOUT PROCEDURE FOLLOWED BY LIC TO SELL THE POLICY TABLE NO 2.6 Respondents Employees Professionals Business People Others Total Good 5 4 2 4 15 Some Are essential 10 12 5 6 33 Some are modify 10 14 8 6 38 Poor 6 2 2 4 14 Total 31 32 17 20 100

The procedure followed by LIC are felt to divers by 14% and 38% of respondents says that the procedure has to modify and 33% of respondents are says that the procedure is some where essential and 15% of respondents says that the procedure followed by LIC to use the policy is good. However 33% and 98% peel that some of them are essential and some may be modified some modification on view of policyholder servicing are more tedious of the procedures more in convenience to the customer. It is not worthy that 48% of the people feel that the procedures are:

THE CHART SHOWING REASON TO PUCHASE AN INSURANCE POLICY

~ 67 ~

LIC OF INDIA

Table No. 2.6

14 12 10 8 6 4 2
Employees Professionals Professionals Business People Others

Good Some are essential Some are modify Poor

0

~ 68 ~

LIC OF INDIA

TABLE

SHOWING

CUSTOMERS

OPINION

ABOUT

PRIVATIZATION OF INSURANCE Table No. 2.7

Responders Employees Professionals Business People Others Total

Competition Required 25 20 10 8 63

Completion delayed 4 8 3 9 24

Not Required 2 4 4 3 13

Total 31 32 17 20 100

63% of public feel that a competitive atmosphere is required in life insurance sector 24% feel that competition would have delayed where 13% feel that competition is not required. Whatever may be the achievement of LIC in the LPG the customer wants a competition 63% feels competition is necessary. The monopoly of LIC indeed with the introduction IRDA act 1999 and now the field is wide open.

~ 69 ~

LIC OF INDIA

CHART SHOWING CUSTOMERS OPINION ABOUT PRIVATIZATION OF LIC’S Chart No. 2.7

Competation Required Completion delayed Not Required

~ 70 ~

LIC OF INDIA

TABLE SHOWING CUSTOMERS IMPACT OF OPENING OF LIFE INSRANCE SECTOR Table No. 2.8
Responders Employees Professionals Business people Others Total A 10 12 6 8 36 B 7 8 4 5 24 C 6 6 4 4 20 D 8 6 3 3 20 Total 31 32 17 20 100

 Customer gets wonder range of product  Improved customer service  Better returns  Lesser Premium rate

24% of respondent’s opinion that improved customer service will be offered on opening of life insurance sector 20% expenses there will be reduction in premium rate 16% are anticipated better returns and 36% of respondents are anticipated a wider range of products wider range of products in life insurance sector is more. Chart showing that the wider range of products is improved customer services better returns and lesser premium is gets a uniform rate.

~ 71 ~

LIC OF INDIA

Chart No. 2.8
12 10 8 6 4 2
Professionals Business People Employees Others

A B C D

0

~ 72 ~

LIC OF INDIA

TABLE SHOWING RESPONDERS OPINION ABOUT INVESTMENT PROCEDURE ON PRIVATE INSURANCE SECTORS TABLE No. 2.9 Respondents Employees Professionals Business People Others Total For 21 18 12 9 60 Against 10 14 5 11 30 Total 31 32 17 20 100

60% of the respondents are of the opinion that the investment pattern for all life insurance must be same and 40% are against

From the chart 60% of the respondents feel there should be uniform procedure as to investment of funds for LIC and other companies under this system the returns on the funds depends on the efficiency of the insurer.

~ 73 ~

LIC OF INDIA

CHART SHOWING RESPONDERS OPINION ABOUT INVESTMENT PROCEDURE ON PRIVATE INSRUANCE SECTORS CHART No. 2.9

25 20 15 10 5 0 Employees For Aganist

Business People

~ 74 ~

LIC OF INDIA

FINDING: A survey was conducted in and outskirts of Chintamani town. A sample size of was selected from various groups like employees, professionals, businesspeople and other randomly and their opinion was segregated and finding are drawn.

1. About 49% of customers have felt LIC is a good investment option Then bank, UTI and other sources. They feel like this because LIC have 2fold advantage, it is not only a good investment option but it also covers the good investment option but a life secured option.

2. LIC is secured in influencing the customers to purchase it can be found from the analysis that majority of customers that is about 78%purchased life insurance policy on their one interest. Beside 56% of customer’s hare about 75% knowledge of a various policies offered by LIC. This is simply remarkable if we just consider if we just consider number of policies as it is about 11crores alt all Indian level.

~ 75 ~

LIC OF INDIA

3. It can be seen for the above analysis that the servicing facilities provided by LIC has to be improved further about 51% of the customer’s feel the services offered is very good. But it is notable that 36% of the respondents feel the services provided are average.

4. LIC is transparent in its operations as it is evident from the analysis that 90% of customer knows that LIC invests its funds in public welfare activities and also 76% of the customers are also aware of the fact that LIC’s claim settlement ratio is highest in the world. It gives a clean picture of LIC’s marketing strategy.

5. Although LIC granting free insurance cover in association with state and central government weaker sections of the society. They analysis of in for that 58% of customers are not aware about this unmatchable social welfare activity wide publicity is necessary in this regard.

6. In spite of various achievements of the organization it has not been able to convince customers that, computation is not required in life insurance section. About 89% of customers expressed that competition is necessary in life insurance sector. But these customers must be made to understand evils of competition.

~ 76 ~

LIC OF INDIA

7. It is revealed from the studies that customers are expecting a lot with regard to range of products, services, better returns rate of premium etc., this is why, they feel that if competition is required and they may realize better returns with less premium as well as wide range of products with improved services.

~ 77 ~

LIC OF INDIA

SUGGESTIONS: Improvement of service: From the survey it is necessary for the corporation to give a very high level of importance to policy servicing.

 

Service should be envisaged without delay. Services of field people must be must be utilized effectively to give better service after sale of policy.



Procedure must be simplified and areas like claims, loans, and surrenders must made customer friendly.

~ 78 ~

LIC OF INDIA

Publicity:
It is necessary to give a wide publicity towards insurance plans, services offered to customers and achievements o LIC. This helps to build the confidence in a policy holder and strengthens the organization. It is also necessary to prevent the antisocial canvas, damage to the image of corporation.

The success of the insurance company is largely depending not he field force actually who are treated as selling persons so increasing the morale of agents through proper motivation plays a key role to lead the competition.

Upgrading the technology for rural branches and also company makes to fulfill the dreams of policy holder to avail a policy loan at Agra but policy service at Hassan branch.

~ 79 ~

LIC OF INDIA

Suggestions form public All though the respondents are not clear about the product, which would attract more customers, it is necessary to introduce unit linked insurance schemes. Where better returns are guaranteed and keeping

increasing longevity in view policies like double or treble endowment plans. The respondents feel that LIC should take up the following measures to stay in competition as market leader.

    

Reduction in premium Professionalizing between work force and field force. Make the people to understand the need for insurance coverage Fast service and online payment every where in the country. Transfer of policy document from one place to another without much delay.

~ 80 ~

LIC OF INDIA

QUESTIONNAIRE
NAME: AGE:

OCCUPATION:

SEX:

Number of “LIFE INSURANCE POLICIES “you are having ____________ 1. Are you paying premium under which mode? a) Yearly ( ) c) Quarterly ( ) b) Half years ( ) d) Monthly ( )’

2. In your opinion which is the best way of investment? a) Bank ( ) C) UTI ( ) b) LIC ( ) d) Other Sources ( )

3. Which are the reasons to purchase a life insurance policy a) Savings ( ) c) Risk Cover ( ) b) Income Tax ( ) d) Family provision ( )

4. On which basis are you purchasing a life insurance policy? a) Your own interest ( ) c) Pressure from others ( ) b) Advise from other ( )

~ 81 ~

LIC OF INDIA

5. In your opinion the various plans offered by LIC are sufficient? Yes ( ) No ( )

6. What ions you awareness level about LIC’s Products (Plans) offered to public? a) 100 % ( ) c) 50 % ( ) b) 75 % ( ) d) 25% ( )

7. The following types of plans are offered by LIC, How many types you can identify? 1. Children plan 3. Whole life plans 5. Plans for rural public ( Please tick or write ) 2. Health plan 4. Joint life plans 6. Deposit type plans 8. Plans for exclusive woman’s

7. Plans for physical handicapped

9. Ordinary double and triple endowment covers & with high sum assured 10. Annuities (Pension)

8. In Your opinion how is the policy holder servicing facilitated by LIC a) Excellent ( ) b) Very good ( ) c) Average d) Poor ( )

~ 82 ~

LIC OF INDIA

9. Do you feel to what extent that the field force (i.e., development officers and Agents) are giving service after sale of your life insurance Policy? a) 100% ( ) b) 75% ( ) c) 50% ( ) d) 25% ( )

10. Do you know LIC has a large investment in various people welfare activities of the country? a) Yes ( ) b) No ( )

11. LIC claim settlement ration is about 98% (including death and maturity claims) and is number one in world. Are you aware of this fact? a) Yes ( ) b) No ( )1

2. LIC Policy can be used as a collateral security to housing loans. Do you know this? a) Yes ( ) b) No ( )

13. Do you know LIC has formed divisional policy holder council & Zonal claim review Committee to server better? a) Yes ( ) b) No ( )

~ 83 ~

LIC OF INDIA

14. LIC is granting free insurance cover in association with state and central Govt., to weaker section of the society (unorganized group) do you know this? a) Yes ( ) b) No ( )

15. Do you feel that the procedures followed by LIC are tedious in respect of selling a policy and its servicing? a) Yes ( ) c) Some are essential ( ) b) No ( ) d) some may be modified ( )

16. Your answer towards privatization insurance sector is the present trend? a) Competition is required ( ) b) Complementation would have delayed ( ) c) Completion is now required ( )

17. In your opinion what would be the impact of opening of life insurance sector? a) Customer gets wider range of products ( ) b) Improved customer service ( ) c) Better returns ( ) d) Lesser premium rate ( )

~ 84 ~

LIC OF INDIA

18. LIC’s funds are controlled funds and are invested as per the guidelines of central govt., and LIC, Act 1956. Hence the interest yield is

comparatively lower. Do you think this same pattern of investments should be imposed on private insurance also to maintain a health Competitor? a) Yes ( ) b) No ( )

19. What may be type of product or plans (like unit linked insurance scheme of double and triple endowment 2 times sum assured or 3 times assured payable on survival that would attract more customers ? Kindly suggest the need / expectation a) Yes ( ) b) No ( )

20. Now it is an open market for all life insurers kindly suggest in a couple of sentences that the measures to be taken by LIC to stay in the competition as he market leader.

~ 85 ~

LIC OF INDIA

BIBLIOGRAPHY

Fundamentals of marketing

by

Stanton, Etzel and walker.

Consumer Behavior

by

Loudon and Della Bitta.

Marketing and Public Relationship

Public by Insurance Institution of India

Company Brochures and Pamphlets

Magazines: Indian Express Business Today

~ 86 ~

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close