H.R

A STUDY ON

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
WITH REFERENCE TO

LIFE INSURANCE CORPORATION (LIC) ELURU
A Project Report Submitted in the partial fulfillment for the Award of the Degree of
Submitted by RAMA KRISHNA KORSA

(Reg No: 20854 000 5)
Under the guidance of

Mr. .!. CH"N#U$ M%" Facu&ty in management 'tudie'

MASTER OF !USINESS ADMINISTRATION ADITYA INSTITUTE OF PG STUDIES$
"#% road$ 'uram(a&em$ E.).$ *++, - .+.

ADITYA INSTITUTE OFP"G"STUDIES
DEPARTMENT OF !USINESS MANAGEMENT
(Approved By Aicte, Affiliated To AU)

A#$%&' N'g'() AD! Ro'#) SURAMPALEM*5++4+,

!ONAFIDE CERTIFICATE

Thi'

i'

to

certify

that

the

(ro/ect

entit&ed

0 CUSTOMER

RELATIONSHIP MANAGEMENT- i' the bonafide 1or2 done by Mr. .!. CHANDU$ M%" during the (eriod *++,-.+ in (artia& fu&fi&&ment of the re3uirement for the a1ard of the #egree of MASTER OF !USINESS ADMINISTRATION IN ADITYA INSTITUTE OF P"G" STUDIES affi&iated to AU"

PRO.ECT GUIDE:

HEAD OF THE DEPARTMENT o/ M!A M(" ."NAGENDRA KUMAR

M( " K"L " CHANDU "''i'tant 4rofe''or$ #e(artment of M%"

DECLARATION
I hereby dec&are that thi' (ro/ect re(ort entit&ed " STU#5 ON

0CUSTOMER RELATIONSHIP MANAGEMENT (CRM)- 1ith
reference to" LIFE INSURANCE CORPORATION(LIC)) at ELURU) 'ubmitted by me in (artia& fu&fi&&ment of ma'ter of bu'ine'' admini'tration to the de(artment of M.%.".$ ".U.$ A#$%&' $12%$%3%e o/ P"G" 2%3#$e2$ Suram(a&em$ in genuine and bonafied 1or2 done by me and it i' not (re6iou'&y 'ubmitted by me for the a1ard any degree or di(&oma in any other In'titute or Uni6er'ity.

4&ace7

(RAMA KRISHNA KORSA) Regd. No. 20854 000 5

#ate7

ACKNO4LEDGEMENT
I 1ou&d &i2e to ta2e thi' o((ortunity to e8(re'' my dee( and (rofound gratitude to the (eo(&e concerned 1ho ha6e he&(ed me direct&y or indirect&y in 'ucce''fu& com(&etion of thi' (ro/ect. I e8(re'' my 'incere gratitude to Mr" ." NAGENDRA KUMAR) M%"$ and head of the de(artment for gi6ing u' the o((ortunity to do the (ro/ect 1or2. I am than2fu& to M("K"L"CHANDU) M%"$ for being my facu&ty guide and gratefu& to hi' direction and in'(iration. I am than2fu& to Sri !HIMASHANKAR mar2eting de6e&o(ment officer L$/e I123('15e Co(6o('%$o1(LIC))E73(3 for (ro6iding me a&& the

nece''ary information in carrying out my (ro/ect 'tudy. !a't but not &ea't my 'incere than2' to my (arent' and a&'o friend' 1ho he&(ed me direct&y or indirect&y during our (ro/ect 1or2.

4&ace7 #ate7

(RAMA KRISHNA KORSA) Regd.No.20854 000 5

CONTENTS
CHAPTER*I
     INTRO#UCTION NEE# FOR THE STU#5 O%9ECTI:ES METHO#O!O)5 !IMIT"IONS

CHAPTER*II
THE SCEN"RIO OF INSUR"NCE IN#USTR5

CHAPTER*III
COM4"N5 4ROFI!E

CHAPTER*I8
THEORETIC"! FR"MEWOR

CHAPYER*8
"N"!5SIS "N# INTER4RET"TION

CHAPTER*8I
 FIN#IN)S  SU))ESTIONS  CONC!USION

9UESTIONNAIRE !I!LIOGRAPHY

CH"4TER-.


   

INTRO#UCTION NEE# FOR THE STU#5 O%9ECTI:ES METHO#O!O)5 !IMIT"TIONS

INTRODUCTION
!ife in'urance in India 1a' nationa&i;ed in .<=> by incor(orating !ife In'urance Cor(oration of India and a&& (ri6ate &ife in'urance com(anie' 1ere ta2en o6er by !IC. "gain in *+++ )o6t. of India (a''ed a ne1 in'urance bi&& Insurance Regulatory and Development Authority Act and a((ointed a ne1 in'urance regu&ator ? In'urance Regu&atory and #e6e&o(ment "uthority to i''ue &icen'e to (ri6ate in'urance com(anie'. Thi' again o(ened door to (ri6ate (&ayer' and ma/or Indian financia& com(anie' tied u( 1ith g&oba& in'urance giant' to get more 'hare in Indian &ife in'urance mar2et. !ife in'urance i' a contract bet1een the in'urer and (o&icy o1ner. In'urer i' agreed to (ay an amount to the (er'on in'ured or hi' nominee either at the date or maturity or a (eriodic inter6a&' or unfortunate death of the (o&icy o1ner. 4o&icy o1ner ha' to (ay a fi8ed amount ca&&ed (remium in (eriodic inter6a&'. Thi' can be month&y$ 3uarter&y$ ha&f year&y or year&y. 4o&icy o1ner i' a&&o1ed to choo'e the ty(e of (ayment and (ayment cyc&e. There are many &ife in'urance 'cheme' a6ai&abi&ity today in India. 4remium amount 6arie' de(end' on many factor' &i2e age of the (o&icy o1ner$ 'cheme$ ty(e of the (o&icy$ 'um a''ured etc. The bu'ine'' of in'urance i' re&ated to the (roduction of the economic 6a&ue' of a''et'. E6ery a''et ha' a 6a&ue. The a''et 1ou&d ha6e been created through the effort' of the o1ner. E6ery a''et i' e8(ected to &a't for a certain (eriod of time during 1hich it 1i&& (erform. "fter that$ the benefit may not be a6ai&ab&e. There i' a &ife time for machine in a factory or a co1 or a motor car. None of them 1i&& &a't for e6er.

LIFE INSURANCE COMPANIES IN INDIA
LIFE INSURER IN PU!LIC SECTOR " !ife In'urance Cor(oration of India
LIFE INSURER IN PRI8ATE SECTOR  ICICI 4rudentia& !ife In'urance  %a/a/ "&&ian; !ife  %ir&a Sun &ife  S%I !ife In'urance  ota2 Mahindra O&d Mutua& !ife In'urance

 "6i6a !ife In'urance  Re&iance !ife In'urance Com(any !imited.  Tata "I) !ife  Met!ife India !ife In'urance  IN) :y'ya !ife In'urance  Ma8 Ne1 5or2 !ife In'urance The (re'ent 'tudy@ A STUDY ON MARKET SHARE OF PRI8ATE AND PU!LIC
LIFE INSURANCE COMPANY 4ITH REFERENCE TO LIC ELURU-$

i' cho'en in

con'u&tation 1ith the com(any guide and facu&ty guide. The main ob/ecti6e of the 'tudy i' to 2no1 the (re'ent mar2et 'hare and to 'tudy the mar2et and create a1arene'' about the In'urence in the mar2et.

NEED FOR THE STUDY

In (re'ent 'cenario in'urance 'ector i' booming and com(etition becoming 6ery inten'e becau'e$ different in'urance com(anie' introducing different (roduct' in the mar2et'. Com(etition .i' (ro6iding better acce'' for cu'tomer

Cu'tomer retention i' 6ita& in no1 ?a-day' com(etiti6e mar2et'. My (ro/ect focu'e' on ho1 the cu'tomer' are 'er6ed by !ICian'.My 'tudy on cu'tomer re&ation'hi( management focu'e' on different cu'tomer retention (rogramme' ado(ted by !IC.

O!.ECTI8ES

To 2no1 the 'er6ice' offered by !IC to retain it' cu'tomer in E!URU to1n

 To 2no1 the cu'tomer (erce(tion on !IC (roduct' in E!URU.

 To 2no1 1here doe' !IC 'tand' in term' of mar2et 'hare in E!URU

 To 2no1 the (ercentage of the in'ured (o(u&ation in E!URU.

 To 2no1 1hich of the factor' inf&uence in ta2ing a &ife in'urance (o&icy.

 To 2no1 the a1arene'' &e6e& about !IC in E!URU.

METHODOLOGY

So3(5e2 o/ D'%'

 4rimary data7 4rimary data i' the data co&&ected by mar2et 'ur6ey through 1hich data i' co&&ected from the cu'tomer' direct&y through 3ue'tionnaire'.

 Secondary #ata7 9ourna&'$ (a't record of the com(any$ Internet etc.

Sample i!e: *=+ Sampli"# tec$"i%&e: 4robabi&ity 'am(&ing-Sim(&e random 'am(&ing '&e tio""aire De i#": Structured 3ue'tionnaire

Me%:o# o/ '1'7&2$2:

For the ana&y'i' the co&&ected data 1a' tabu&ated into one 1ay fre3uency tab&e'. The'e tab&e' he&(ed in reaching to 'ome inference'.

LIMITATIONS

•

The 'ur6ey 1a' &imited to *=+ unit' of the (o(u&ation

•

Ser6ice' to (o&icyho&der 'ome of the re'(ondent' did not ha6e that much idea about (roduct' and their 'er6ice. Some of the re'(ondent' due to time con'traint cou&d not e8(re'' their 6ie1' com(&ete&y.

•

Some of the re'(ondent' 1ere he'itate to re6ea& the accurate information re3uired for the 'ur6ey Time con'traint

CHAPTER*II

THE SCENARIO OF INSURANCE INDUSTRY

THE SCENARIO OF INSURANCE INDUSTRY

4HAT IS INSURANCE;

The ba'ic' of in'urance are re&ated to the (rotection of the economic' 6a&ue' of a''et'. E6ery a''et ha' a 6a&ue. The a''et 1ou&d ha6e been created through the effect of the o1ner. The a''et i' 6a&uab&e to the o1ner$ becau'e he e8(ect to get 'ome benefit'$ from it. The benefit becau'e it meet' 'ome of it need'. In the ca'e of a factory or a co1$ the (roduct generated by i' 'o&d and income generated. In the ca'e of a motor car$ it (rofi&e' comfort and con6ince' in tran'(ortation. There i' no direct income. E6ery a''et i' e8(ected to &a't for a certain (eriod of time during 1hich it 1i&& (erform. "fter that$ the benefit may not be a6ai&ab&e. There i' &ife-time for a machine in a factory or a co1 or a motor car. None of them 1i&& &a't for e6er. The o1ner i' a1are of thi' and he can 'o manage hi' affair' that by the end of that (eriod or &ife-time$ a 'ub'titute i' made a6ai&ab&e. Thu'$ he ma2e' 'ure that the 6a&ue or income' are not &o't. Ho1e6er$ the a''et may get &o't ear&ier. "n accident or 'ome other unfortunate e6ent may de'troy it or ma2e it non-functiona&$ 1ou&d be de(ri6ed of the benefit and the (&anned 'ub'titute 1ou&d not ha6e been ready. There i' an ad6er'e or un(&ea'ant 'ituation. In'urance i' a mechani'm that he&(' to reduce the effect of 'uch ad6er'e 'ituation.

THE HISTORY OF INSURANCE

The bu'ine'' of in'urance 'tarted 1ith marine bu'ine'' trader'$ 1ho u'ed to gather in the !&oydA' coffee hou'e in !ondon agreed to 'hare the &o''e' to their good' 1hi&e being carried by 'hi('. The &o''e' u'ed to occur becau'e of (irate' 1ho robbed on the high 'ea' or becau'e the 'hi(. The fir't in'urance (o&icy 1a' i''ued in .=,B in Eng&and. In India$ in'urance began in .,C+ 1ith &ife in'urance being tran'acted by an Eng&i'h com(any$ the Euro(ean and the "&bert. The fir't Indian in'urance com(any 1a' the %ombay mutua& a''urance 'ociety &td$ formed in .,C+. Thi' 1a' fo&&o1ed by the orienta& &ife a''urance co. in .,CD$ the bharat in .,<> and the em(ire of India in .,<C. !ater the Hindu'tan coo(erati6e 1a' formed in Ca&cutta. The United India in madra'$ the %ombay &ife in %ombay$ the nationa& in Ca&cutta$ the ne1 India in %ombay$ the 9u(iter in %ombay and the !a2'hmi in #e&hi. The'e 1ere a&& Indian com(anie'$ 'tarted a' re'u&t of the '1ade'hi mo6ement in ear&y .<++'. %y the year .<=>$ 1hen the &ife in'urance bu'ine'' 1a' nationa&i;ed and the &ife in'urance cor(oration of India E!ICF 1a' formed on .ST Se(tember .<=>$ there 1ere .C+ com(anie' and C= (ro6ident fund 'ocietie' tran'acting &ife in'urance bu'ine'' in India. "fter the amendment' to be re&e6ant &a1' in .<<<$ the !.I.C.

did not ha6e the e8c&u'i6e (ri6i&ege of doing &ife in'urance had been regi'tered and had begun to tran'act &ife in'urance bu'ine'' in India.

PURPOSE < NEED OF INSURANCE
"''et' are in'ured$ becau'e they are &i2e&y to be de'troyed$ through accidenta& occurrence'. Such (o''ib&e occurrence' are ca&&ed (eri&'. Fire$ f&ood'$ brea2do1n'$ &ightning etc. are (eri&'. If 'uch (eri&' can cau'e damage to the a''et$ 1e 'ay that the a''et i' e8(o'ed to that ri'2. 4eri&' are the e6ent'. Ri'2' are the con'e3uentia& &o''e' or damage'. The ri'2' are the con'e3uentia& &o''e' or damage'. The ri'2' to a o1ner of a bui&ding$ becau'e of the (eri& of an earth3ua2e$ may be a fe1 &a2h' or a fe1 crore' of ru(ee'$ de(ending on the co't of the bui&ding and content'. The ri'2 on&y mean' that there i' a (o''ibi&ity of &o'' or damage. The damage may or may not ha((en. In'urance i' done again't the contingency that it may ha((en. There ha' to be an uncertainty about the ri'2. In'urance i' re&e6ant about occurrence of an e6ent$ it cannot be in'ured again't. In the ca'e of human being$ death i' certain$ but the time of death i' uncertain. In the ca'e of a (er'on$ 1ho i' termina&&y i&&$ the time of death i' not uncertain$ though not e8act&y 2no1n. He cannot be in'ured. In'urance doe' not (rotect the a''et. It doe' not (re6ent it' &o'' due to the (eri& cannot be a6oided through in'urance. The (eri& can 'ome time' be a6oided$ through better 'afety and damage contro& management. In'urance on&y trie' to reduce the im(act of the ri'2 on the o1ner of the a''et and tho'e 1ho de(end on the a''et. It on&y com(en'ate' the &o''e' and that too$ the fu&&y. On&y economic con'e3uence' can be in'ured. If the &o'' i' not financia&$ in'urance may not be (o''ib&e.

HO4 INSURANCE 4ORKS

The mechani'm of in'urance i' 6ery 'im(&e. 4eo(&e 1ho are e8(o'ed to the 'ame ri'2' come together and agree that$ if any one of them 'uffer' a &o''$ the other' 1i&& 'hare the &o'' and ma2e good to the (er'on 1ho &o't. "&& (eo(&e 1ho 'end good' by 'hi( are e8(o'ed to the 'ame ri'2'. Which are re&ated to 1ater damage'$ 'hi( 'in2ing$ (iracy$ etc.tho'e o1ning factorie' are not e8(o'ed to the'e ri'2'$ but they are e8(ected to different 2ind' of ri'2' &i2e$ fire$ hai&'torm'$ earth3ua2e'$ &ighting$ burg&ary$ etc.&i2e fire different 2ind' or ri'2' can be identified and 'e(arate grou(' made$ inc&uding tho'e e8(o'ed to 'uch ri'2'$ by thi' method$ the hea6y &o'' that any one of them may 'uffer i' di6ided into bearab&e$ 'ma&& &o''e' by a&&. In other 1ord'$ the ri'2 i' '(read among the community and the &i2e&y big im(act on one i' reduced to 'ma&&er manageab&e im(act' on a&&.

E='>67e In a 6i&&age there are D++ hou'e'. Each 6a&ued at R'.*$ ++$ +++. E6ery on the a6erage D hou'e' get burnt$ re'u&ting into a tota& &o''. If a&& the D++ o1ner' come together and contribute R'.*++ each$ the common fund 1ou&d be R'.,+$ +++. Thi' i' enough to (ay R'.*+$ +++ to each of the D o1ner' 1ho'e hou'e got burnt. Thu' the ri'2 of D o1ner' i' '(read o6er D++ hou'e o1ner' of the 6i&&age.

THE HUMAN ASSET

" human being i' an income generating a''et. OneA' manua& &abor$ (rofe''iona& '2i&&' and bu'ine'' acumen i' the a''et. Thi' a''et a&'o can be &o't through une8(ected&y ear&y death cau'ed by accident'. "ccident' may or may not ha((en death but the timing i' uncertain. %ut if it ha((en' much ear&ier 1hen the a&ternate arrangement' not in (&ace$ there can be &o''e' to the (er'on and de(endent'. In'urance i' nece''ary to he&( tho'e de(endent on the income.

The (er'on$ 1ho may ha6e made arrangement' for hi' need' after hi' retirement$ a&'o 1ou&d need in'urance. Thi' i' becau'e the arrangement' 1ou&d ha6e been made on the ba'i' of 'ome e8(ectation'.

INSURANCE OF INTANGI!LES

The conce(t of in'urance ha' been e8tended beyond the co6erage of tangib&e a''et'. E8(orter' run at the ri'2 of &o''e' if the im(orter' in the other country defau&t in (ayment' or in co&&ecting the good'. They 1i&& a&'o 'uffer hea6i&y due to 'udden change' in currency e8change rate'$ economic' (o&icie' or (o&itica& di'turbance' in the other country. The'e ri'2' are in'uredG doctor' run the ri'2 of being charged 1ith neg&igence and 'ub'e3uent &iabi&ity for damage'. The amount

in 3ue'tion can be fair&y &arge$ beyond the ca(acity of indi6idua&' to bear. The'e are in'ured. Thu' in'urance i' e8tended to intangib&e'.

THE !USINESS OF INSURANCE
In'urance com(anie' are ca&&ed in'ure'. The bu'ine'' of in'urance i' to bring together (er'on' 1ith common in'urance intere't'$ co&&ect 'hare from a&& of them and (ay out com(en'ation to tho'e 1ho 'uffer. The (remium i' determined on the 'ame &ine' a' indicated in e8am(&e' abo6e$ but 1ith 'ome further refinement'.

INSURANCE AS A SOCIAL SECURITY TOOL
The United Nationa& #ec&aration of human right' .<,D (ro6ide' that e6ery one ha' a right to a 'tandard of &i6ing ade3uate for the hea&th and 1e&& being of him 'e&f and hi' fami&y inc&ude food c&othing hou'ing and medica& care and nece''ary 'ocia& 'er6ice' and the right to 'ecurity in the e6ent of unem(&oyment.

ROLE OF INRANCE IN ECONOMIC DE8ELOPMENTNS
For economic de6e&o(ment$ in6e'tment' are nece''ary. In6e'tment' are made at 'a6ing'. " &ife in'urance com(any i' a ma/or in'trument for the mobi&i;ation of 'a6ing of (eo(&e$ (articu&ar&y from the midd&e and &o1er income grou('. The'e 'a6ing' are channe&ed into in6e'tment' for economic gro1th. "' on B..B.*++*$ the tota& in6e'tment' of the !IC e8ceeded R'.*D=+++ crore'$ of 1hich more than R'..B++++ crore' 1ere direct&y 'ecuritie'$ more then

R'. .*+++ corer' in the 'tate e&ectricity board'$ near&y R'.*++++ corer' in hou'ing &oan' and R'.D+++ crore' in 1ater 'u((&y and 'e1erage 'y'tem'.

PRINCIPLES OF INSURANCE

LIFE INSURANCE CONTRACTS
" &ife in'urance (o&icy i' a contract$ in term' of the Indian Contract "ct$ .,C*. " contract i' an agreement bet1een t1o or more (artie' to do$ or not to do$ 'o a' to create a &ega&&y binding re&ation 'hi(. " 'im(&e contact mu't ha6e the fo&&o1ing e''entia&'. .. Offer and acce(tance *. Con'ideration B. Ca(acity of contract D. Con'en'u' Had idemA Egenuine meeting of mind'F =. !ega&&y of ob/ect or (ur(o'e >. Ca(abi&ity of (erformance C. Intention to create &ega& re&ation'hi( In'urance i' a '(ecia&i;ed ty(e of contact. " (art from the u'ua& e''entia&' of a 6a&id contract$ in'urance contract are 'ub/ect to t1o additiona& (rinci(&e' 6i;. (rinci(&e of utmo't good faith I (rinci(&e of in'urance of in'urab&e intere't. The'e a((&y to a&& in'urance$ both &ife and non-&ife.

PRINCIPLE OF UTMOST GOOD FAITH

Commercia& contract' are norma&&y 'ub/ect to the (rinci(&e of ca6eat em(tor i.e. &et the buyer be1are. It i' a''umed the each (arty to the contract can e8amine the item or 'er6ice$ 1hich i' the 'ub/ect matter of the contract. Each (arty can 6erify the correctne'' of the 'tatement' of the other (arty. There i' no need to ta2e the 'tatement on tru't. 4roof can be a'2ed for. In the ca'e of in'urance contract$ thi' (rinci(&e doe' not a((&y. Mo't of the re&ating to hea&th$ habit'$ (er'ona& hi'tory. Fami&y hi'tory$ etc.$ 1hich form the ba'i' of the &ife in'urance contract$ are 2no1n on&y to the (ro(o'er. The in'urer cannot 2no1 them$ if the (ro(o'er doe' not di'c&o'e them. The under1riter can a'2 for a medica& re(ort. 5et there may be certain a'(ect'$ 1hich may not be brought out e6en by the be't medica& e8amination. For e8am(&e$ a (er'on 'uffering from b&ood (re''ure or diabete' can$ through a((ro(riate medication$ hide the'e fact' from the e8amination doctor. Hi'tory of (a't 'ic2ne''$ o(eration'$ in/urie' can be 'u((re''ed. Some of the'e con'titute materia& information from the under1riterA' (oint of 6ie1. Simi&ar&y$ in genera& in'urance$ an in'(ection of the go do1n ha' been tem(orari&y re&ocated. Non-di'c&o'ure of 'uch fact' 1ou&d (ut the in'urer a' 1e&& a' the community of (o&icyho&der'$ at a di'ad6antage. There i' 1hat i' ca&&ed Had6er'e 'e&ectionA. The contract i' unfair becau'e one of the (artie' to the contract' i' INS amore ad6antageou' (o'ition.

" 'ummary of the doctrine of utmo't good faith 1a' gi6en in the ca'e of Ro;ane' 6'. %o1en in .<*, a' fo&&o1' 0"' the under1rite 2no1n nothing and the man 1ho come' to him to a'2 for in'urance 2no1n' e6ery thing$ it i' the due of the a''ured to ma2e a fu&& di'c&o'ure to the under1riter 1ithout being a'2ed$ of a&& materia& circum'tance'. Thi' i' e8(re''ed by 'aying that it i' a contract of utmo't good faith@. The &a1 im(o'e' a greater duty on the (artie' to an in'urance contract than in the ca'e of other commercia& contract'$ to di'c&o'e re&e6ant information. Thi' duty i' one of utmo't good faith or Uberrimae Fide'. It i' the duty of the (ro(o'er to ma2e a fu&& di'c&o'ure to the under1riter. The im(&ication i' that$ in ho1 e6ent of fai&ure to di'c&o'e materia& fact'$ the contract can be he&d to be 6oid ab-initio. E6ery circum'tance that 1ou&d ha6e a bearing on the /udgment of a (rudent in'urer in fi8ing the (remium or determining the acce(tabi&ity of the (ro(o'a& for in'urance i' a materia& fact. Therefore$ fact' regarding age$ height$ bui&d$ nature of occu(ation$ 'mo2ingJdrin2ing habit'$ medica& hi'tory$ 'urgerie'$ ear&ier in'urance'$ etc.$ mu't be di'c&o'ed. The (ro(o'er cannot defend nondi'c&o'ure by contending that he did not thin2 that the fact 1a' not materia&K There are certain circum'tance'$ 1hich need not be di'c&o'ed. They are .. Fact' of common 2no1&edge$ 1hich e6ery one i' 'u((o'ed to 2no1. *. Fact' of &a1 B. Fact' 1hich a 'ur6ey 1ou&d ha6e re6ea&ed.

D. Fact' 1hich cou&d be rea'onab&y di'co6ered$ by reference to (re6iou' (o&icie' and record' a6ai&ab&e 1ith the in'urer. Ho1e6er in the ca'e of 'ima Sar2ar 6' We'tern India &ife in'urance co. &td. E.<D*F. The Ca&cutta a((ea& court he&d that the fact that the (re6iou' dec&ined card 1a' a6ai&ab&e 1ith the in'urer$ 1ou&d not by it'e&f 'uffice to con'ideration The duty of di'c&o'ure in &ife in'urance o(erate' ti&& the ri'2 commence'. Circum'tance'$ 1hich may ha6e ari'en after the ri'2 ha' commenced$ o not affect the 6a&idity of the contract$ ma2e re&e6ant 'ti(u&ation' to that effect. For e8am(&e$ the (o&icy may be i''ued 1ith a condition that any change in occu(ation mu't be notified to the in'urer. Ho1e6er$ if the term' of (o&icy are to be a&tered$ or if a &a('ed J (aid u( (o&icy i' to be re6i6ed or a 'urrendered (o&icy i' to be rein'tated$ there 1ou&d be a duty to di'c&o'e a&& materia& fact' at that timeG 'ince 1hat fo&&o1' i' ne1 contract. The breach of the (rinci(&e of utmo't good faith may ari'e due to mi're(re'entation or non-di'c&o'ure. Mi're(re'entation or non-di'c&o'ure 'hou&d be .. Sub'tantia&&y fa&'e and 2no1n to the (ro(o'er a' fa&'e not 2no1n to the 'econd (arty *. Concerned 1ith fact' 1hich are materia& to the acce(tance or a''e''ment of the ri'2 or materia& to the benefit' obtained by the (ro(o'er. B. Ca&cu&ated to induce the other (arty to enter into a contract on it' o1n term'.

INSURA!LE INTEREST
"&& ri'2' are not in'urab&e. Other1i'e$ an in'urance contract 1ou&d be no different from a 1agering contract. Wagering contract i' i&&ega& in term' of 'ec.B+ of the Indian contract act and therefore in6a&id. What di'tingui'he' an in'urance contract from a 1agering contract i' that the in'ured mu't ha6e an in'urab&e intere't in the 'ub/ect of in'urance. In 'im(&e term'$ it mean' that the (ro(o'er mu't ha6e a 'ta2e in the continuance of the 'ub/ect in'ured and cou&d 'uffer &o''$ if the ri'2 i' not co6ered through in'urance. The in'ured mu't be in a re&ation'hi( 1ith the 'ub/ect of in'urance.

FEATURES OF INSURA!LE INTEREST
In the ca'e of &ife in'urance (o&icy$ in'urab&e intere't mu't e8i't at the ince(tion of the (o&icy. There i' no$ re3uirement for in'urab&e intere't at the time of a c&aim under the (o&icy. In the ca'e of marine (o&icy$ in'urab&e intere't mu't e8i't at the time of the c&aim. In other in'urance$ in'urab&e intere't mu't e8i't at the time of ince(tion a' 1e&& a' at the time of c&aim.

PRINCIPLE OF INDEMNITY
In'urance i' meant to com(en'ate &o''e'. %y im(&ication$ the mechani'm of in'urance cannot be u'ed to ma2e a (rofit. Thi' i' broad&y the (rinci(&e of

indemnity. In'urance 'hou&d (&ace the in'ured in the 'ame financia& (o'ition after a &o'' a' he en/oyed before it not better.

NEEDS AND INSURANCE

Ri'2' ari'e becau'e there are need' to be fu&fi&&ed. The ri'2' attached to ear&y death ari'e becau'e of the need to maintain the fami&y that i' &eft behind. #ifferent (&an' are de'igned 1ith different benefit'. Whi&e 'e&&ing &ife in'urance$ therefore it i' nece''ary to be a1are of the need' of (eo(&e. %road&y the need' of indi6idua&' may be c&a''ified a' fo&&o1'. .. 4rotection of the 'tandard' of &i6ing of the fami&y$ 1hich i' at ri'2 on ear&y death. *. Future e8(en'e' on account of chi&drenA' education$ marriage$ 'tart of 'ome bu'ine'' and 'o on$ 1hich are ambition' and dream'. B. Continuance of bu'ine'' 1hen financier' a'2 for &ife in'urance (o&icie' a' co&&atera& 'ecurity. D. Sub'tituteA' income 1hen earning ca(acity cea'e' due to o&d age. =. Modem &ife 'ty&eA' 'ub/ect (eo(&e to debt' on account of car$ hou'e$ a((&iance'$ and e3ui(ment' at one obtained on hire (urcha'e arrangement'. >. Wanting to 'end oneA' 'on to medica& co&&ege i' dream. It i' not a need a' e''entia& a' being ab&e to (ro6ide for food and c&othing. "&& the abo6e need' ha6e to be met$ after meeting the co't' of inf&ation. 4eo(&e 1ou&d not be con'ciou'&y a1are of the'e a' formidab&e (rob&em' in the future. E6en if they do$ they may not be 1i&&ing to 'acrifice 'ome of the (&ea'ure'

of the (re'ent in order to (ro6ide for the future. Thi' i' the difficu&ty$ 1hich &ife in'urance agent' face.

4HAT IS PREMIUM;
4remium i' the con'ideration the ho&der ha' to (ay in order to 'ecure the benefit' offered by the in'urance (o&icy. It can be &oo2ed u(on the (rice of the in'urance (o&icy. It may be a one-time (ayment. That i' not common. Often it ha' been (aid regu&ar&y o6er a (eriod of time.

RISKS) NET AND PURE PREMIUM
The figure of r' *++ mentioned 1ou&d be the co't of co6ering the ri'2 of death of (er'on' at the age of =+ for one year. Thi' co't i' for in'urance of R' *+$+++ 1hich can be e8(re''ed a&'o a' R' .+ (er thou'and.

LOADINGS
The admini'trati6e e8(en'e' of the in'urer ha6e to be met out of the (remium (aid by the (o&icy ho&der'. To thi' e8tent the (remium to co&&ect 1i&& be higher. Such addition' to the (ure (remium are ca&&ed &oading'

LE8EL PREMIUMS
If it i' e8(ected that out of .++++ (er'on' at a '(ecified age$ one i' &i2e&y to die 1ith in one year$ the morta&ity rate at that age i' 'aid to be +.+.L. The ri'2 (remium chargeab&e for (er'on' at that age 1ou&d be +.+. (er R' .+++ 'um

a''ured$ if a (o&icy ha' a term of *+ year'$ the ri'2 (remium and therefore the (remium 1ou&d 6ary for each of the *+ year'.

OFFICE PREMIUM
The (remium figure arri6ed at after &oading the net (remium i' ca&&ed the office (remium. They are no1 ready for u'e. The (remium figure' (rinted in the (romotiona& &iterature and brochure' are the office (remium. E?TRA PREMIUM E8tra (remium may be charged are any (articu&ar (o&icy. Thi' may ha((en becau'e of the grand of 'ome benefit in addition to the ba'ic benefit under the (&an$ &i2e accident benefit$ rider' (ro6ide additiona& benefit'. E8tra (remium may become chargeab&e becau'e of under 1riting deci'ion'. The'e are u'ua&&y 'tated a' 'ay$ R' (er .+++$ and 1i&& be added to the (remium other1i'e chargeab&e.

CALCULATION OF AGE
"ge ha' to be determined ha' on the date of commencement' of the (o&icy. If a (er'on i' born *+th "ugu't .<C>$ the age ne8t birthday on .+ th 9u&y *++* 1ou&d be *>.

PREMIUM CALCULATIONS
Ste(-.7 find out tabu&ar (remium for the re&e6ant (&an and term. Thi' (remium i' .+++ 'um a''ured. "''ume that the figure i' R' D=.>+. Ste(-*7 deduct ad/u'tment for &arge 'um a''ured$ if a((&icab&e

RE!ATE PER THOUSAND S"A
R' *=$+++- R' D<$<<< R' =+$+++-R' <<$<<< R' .$ ++$+++ and o6er R'..JR'. ..=+JR'. *J-

If thi' i' a (o&icy for R' C=$+++. S."$ the (remium 1ou&d be R'. DD..+JSte(-B7 the (remium 1ou&d decrea'e by .L of DD..+ ma2ing the (remium R' DB.>> Ste(-D7 "''uming that the e8tra' in thi' ca'e are R' ..=+ (er thou'and' for occu(ationa& ha;ard and R' * (er thou'and for 'u((&ementary benefit'$ the tota& (remium i' R' DC..>

LIFE FUND
In norma& trading bu'ine'' the e8ce'' of income o6er the e8(en'e' in any accounting year 1ou&d be con'idered a' (rofit and 1i&& be di'tributed among 1ith the o1ner'. Thi' i' not 'o in &ife in'urance. The (rofit$ if any$ can be determined on&y after that contract to an end. The (remium' are yet to be (aid in fu&&.

ACTUARIAL 8ALUATION
4remium i' ca&cu&ated ta2ing into account &i2e&y future e8(erience' in re'(ect of morta&ity$ intere't and e8(en'e'. The'e are a''um(tion'. The future e8(erience

may or may not conform to the'e e8(ectation'. The in'urance act in India re3uire' that actuaria& 6a&uation' be done e6ery year.

!ONUS
The di'tribution of the 6a&uation 'ur(&u' to (o&icy ho&der' i' done through the dec&aration of bonu'. On&y (o&icy ho&der' 1ho o(t for (artici(ating or 1ith (rofit (o&icie' 1ou&d be entit&ed to bonu'. Other (o&icy ho&der' 1ho ha6e none (artici(ating or 1ithout (rofit (o&icie' 1ou&d be (aying a '&ight&y &e''er amount of (remium for the 'ame 2ind of in'urance co6er. If a com(ound re6er'ionary 'y'tem$ the bonu' 1i&& be added to e8i'ting S.".inc&uding bonu'e' attached ear&ier. " 6ariety of (ractice' are fo&&o1ed 1ith regard to bonu'. Some ma2e the 6e'ting of bonu' conditiona& on the (o&icy continuing to be in force throughout. )i6en be&o1 detai&' of the bonu' dec&ared by the !IC after the 6a&uation on B.-B*++*. TERM !e'' than .. year' ..-.= year' .>- *+ year' More than *+ year' ENDO4MENT R' .D<JR'. =,JR' .>=JR'. C.JMONEY!ACK ANTICIPATED R'. D,JR'. =,JR'. >=J-

Who&e &ife (o&icy are a&&otted 'im(&e re6er'ionary bonu' at R'..++ (er thou'and S.". " one time bonu' ca&&ed termina& bonu' 1a' dec&are for (o&icie' 1hich had been in force for .= year'. Thi' 1a' in addition to the u'ua& bonu' a&ready dec&ared.

INTERM !ONUS
%onu' i' u'ua&&y dec&ared (o&icie'$ 1hich are in force on the date of 6a&uation. The bonu' after the 6a&uation a' on B.-B-*++B 1i&& be dec&ared 'ometime in Se(tember *++B and 1i&& benefit ho&der' of (o&icie' 1hich are in force on B.-B*++B. In order to o6ercome 'uch anoma&ie'$ actuarie' u'ua&&y dec&are Interim bonu' (ayab&e on 'uch (o&icie'$ 1hich become c&aim' bet1een t1o 6a&uation'.

LIFE INSURANCE PRODUCTS

!ASIC ELEMENTS

!ife in'urance (roduct' are u'ua&&y referred to a' H(&an' of in'uranceA. The'e (&an' are ha6e t1o ba'ic e&ement'. One i' the H#eath co6erA (ro6iding for the benefit being (aid on the death of the in'ured (er'on 1ithin a '(ecified (eriod. The other i' the HSur6i6a& %enefitA (ro6iding for the benefit being (aid on 'ur6i6a& of a '(ecified (eriod. 4&an' are in'urance that (ro6ide' on&y death co6er are ca&&ed HTerm "''uranceA (&an'. The'e that (ro6ide on&y 'ur6i6a& benefit' are ca&&ed H4ure Endo1mentA (&an'. If the in'ured doe' not die 1ith in the '(ecified (eriod$ no (ayment i' made under a term a''urance (&an. Simi&ar&y$ if the in'ured die' 1ith in the '(ecified (eriod$ no (ayment i' made under a (ure endo1ment (&an. %oth the'e are &i2e fire in'urance (o&icie'. If the '(ecified contingency doe' not ha((en$ the (o&icy ho&der doe' not get anything from the in'urer. "&& in'urance (&an' are combination' of the'e t1o ba'ic (&an'. " term a''urance (&an 1ith an un'(ecified (eriod i' ca&&ed a HWho&e &ife (o&icyA under 1hich the 'um a''ured i' (aid on death 1hene6er it may occur. " term a''urance (&an a&ong 1ith a (ure endo1ment (&an 1hen offered a' a 'ing&e (roduct i' ca&&ed an endo1ment a''urance (&an$ under 1hich the S.". i' (aid on 'ur6i6a& of the '(ecified (eriod or on ear&ier death. " term a''urance (&an 1ith a (ure endo1ment

(&an of doub&e the

6a&ue i' ca&&ed a doub&e endo1ment a''urance (&an under

1hich the amount (ayab&e in 'ur6i6a& i' doub&e the amount (ayab&e in death. " (&an of a''urance 1i&& ha6e the fo&&o1ing feature'. %y ma2ing change' in the'e feature' or adding and combining 'ome of them. .. Who can be in'uredM The 6ariou' (o''ibi&itie' are indi6idua& adu&t'$ chi&dren$ t1o or more (er'on' /oint&y under one (o&icy. *. What can be the S."M Some (&an' 'ti(u&ate a minimum S.". there are ma8imum &imit' a&'o for certain benefit'$ &i2e accident' benefit'. B. In 1hat contingency 1ou&d the S." be (ayab&eM Cou&d be on death or on 'ur6i6a&. D. When 1ou&d the S." be (ayab&eM On the contingency ha((ening or 'ome other date' =. Ho1 1ou&d the S." be (ayab&eM Cou&d be in one &um( 'um or in in'ta&&ment'. >. What 1ou&d be the term of the (o&icyM Thi' determine' the (eriod during 1hich the '(ecified e6ent 'hou&d occur for the S" to be (ayab&e. . C. When 1ou&d the (remium be (ayab&eM :ariation are in the fre3uency of (ayment a' 1e&& a' the (eriod during 1hich it i' (ayab&e. Some (&an' (ro6ide for (remium' to be (aid for (eriod &e'' than the term.

SOME POPULAR PLANS

The fo&&o1ing (aragra(h' gibe detai&' of 6ariou' (&an' of in'urance in 6ery genera& term. "&& in'urer' do not offer a&& the (&an'. The (&an may be ca&&ed by different name' by in'urer'. The 6ariation' bet1een in'urer' are (&enty. It i' not (o''ib&e to gi6e detai&' of a&& the in'urer'$ main&y becau'e in'urer' ma2e change' in their offer' or(ractice' from time to time. E6en if a reference i' made to a (&an of any (articu&ar in'urer$ the accuracy of the information i' not to be ta2en for granted. The chea(e't form of a''urance i' the term a''urance (&an. Under thi'$ the S" i' (ayab&e in the death of the in'ured during the '(ecified (eriod. If the death doe' not occur$ there i' no (ayment from the in'urer. The S" may be 2e(t con'tant through out the (eriod$ or be made to a''urance' 1ou&d be a((ro(riate a' co&&atera& to co6er the out'tanding &oan' in mortgage tran'action'. Term a''urance i' not 6ery (o(u&ar$ a' there i' no 'a6ing content. Sur6i6ing (o&icy ho&der' fee& that (o(u&ar$ a' they got nothing out of the (o&icy. Reference ha' been made in an ear&ier (aragra(h to the 1ho&e &ife and the endo1ment (&an'. In a 1ho&e &ife (&an$ the S" become' (ayab&e on&y on death 1hene6er it may occur. %ut un&i2e a term a''urance (&an$ 'ome (ayment 1i&& be made at 'ome time. "&though$ in the ca'e of 1ho&e &ife (o&icie'$ the S" i' (ayab&e on&y on death 'ome in'urer' (ay the S"$ 1hen the &ife a''ured com(&ete' 'ay$ .++ year'. In the endo1ment (&an$ the S" i' (ayab&e on 'ur6i6a& to the end of the term or on ear&ier death.

CON8ERTI!LE PLANS
Con6ertib&e (&an' of a''urance are (&an'$ 1hich (ro6ide$ in it' term' and condition'$ that it can be changed to another (&an after$ or 1ithin$ a certain (eriod after commencement. For e8am(&e$ a con6ertib&e term a''urance (&an can be con6erted in to a 1ho&e &ife (o&icy or an endo1ment (o&icy$ 1ithin a (eriod '(ecified in the origina& (&an. Thi' (eriod may be not &ater than t1o year' before the e8(iry of the origina& term. In other 1ord'$ if the origina& term in'urance co6er i' for > year'$ the o(tion to con6ert 'hou&d be e8erci'e before the end of the fourth year.

4ITH PROFIT AND 4ITHOUT PROFIT POLICIES
With out (rofit (o&ice' are not entit&ed to bonu'e' dec&ared after 6a&uation. With (rofit (o&icie' (ay a '&ight&y higher (remium for the right to (artici(ate in the (rogre'' of the in'urer. With (rofit (o&ice' are (o(u&ar becau'e the bonu'e' are e8(ected to be more than e8tra (remium (aid.

.OINT LIFE POLICIES
I1 %:e 5'2e @o$1% 7$/e $123('15e:
" /oint &ife dec&aration i' nece''ary to create a /oint intere't in the (o&icy. In ca'e of (artner 'hi( in'urance the (artner 'hi( dea& 1i&& be e8amine the nature of intere't of each (artner. Each &ife 1i&& be under 1ritten 'e(arate&y. %onu'e' accrue on the 'ing&e ba'ic S" on&y.

CHILDERNAS PLANS
In'urance can be ta2en on the &i6e' of chi&dren$ 1ho are not ma/orA'. The (ro(o'e 1i&& ha6e to be made by a (arent'. In the'e (&an'$ ri'2 on the &ife on the in'ured chi&d 1i&& begin on&y 1hen that chi&d attain' a '(ecified age. 4ractice' 6ary 1ide&y the time ga( bet1een date of commencement of the (o&icy and the commencement of ri'2' ca&&ed the deferment (eriod. There i' no in'urance co6er during the deferment (eriod. If a chi&d die' during the deferment (eriod$ the (remium' 1i&& be return.

8ARIA!LE INSURANCE PLANS
The unit tru't of India ha' unit &in2ed in'urance (&an. Thi' (&an i' de'igned for any re'ident in India bet1een the ageA' of .* and == (&anning to 'a6e bet1een R'. >+++J- and R'. C=$+++J- to be contributed in ha&f year&y are annua& in'ta&&ment' o6er a (eriod of .+ or .= year'. 4er'on' o6er == year' can go in for a .+ year (&an. No medica& e8amination i' nece''ary. The money bac2 ty(e (o&icie' he&( the (o&icy ho&der' to 'ome e8tent. The &um( 'um' (aid (eriodica&&y 1ith out affecting the amount of in'urance o6er$ can be in6e'ted. Regu&ar 'tatement for the in'urer 1ou&d indicate the gro1th of each of the'e fund' and the (o&icy ho&der 1ou&d ha6e a choice a of 'hifting from one to another.

RIDERS
" rider i' a c&au'e that i' added on to a ba'ic (o&icy (ro6iding an additiona& benefit$ at the choice of the (ro(o'er .:a&uation 'ur(&u' a&'o i' offered a rider. %ut that i' not 'o 1ith regard to a&& rider'. Some of the rider' being offered by in'urer' in India7 Increa'ed death benefit. "ccident benefit a&&o1ing doub&e the S" if death ha((en' 4ermanent di'abi&ity benefit'$ co6ering &o'' of &imb'$ eye 'ite etc. Guaranteed increa'e' in co6er at '(ecified (eriod'. Co6er to continue beyond maturity age for 'ame. "' (er regu&ation made by the IR#" in "(ri& *++* and amended in October *++*.

PLANS CO8ERING HANDICAPPED
4hy'ica&&y handica((ed (er'on' are in'ured. E8tra' are charged in 'ome ca'e' &i2e &o'' of both arm'G deaf in both ear'$ b&ind in both eye'$ etc. the'e detai&' 1i&& ha6e to be gathered from the com(anie' under 1riting de(artment'

INSURANCE INDUSTRY SCENARIO IN INDIA

In'urance may be de'cribed a' a 'ocia& de6ice to reduce or e&iminate ri'2 of &ife and (ro(erty. Under the (&an of in'urance$ a &arge number of (eo(&e a''ociate them'e&6e' by 'haring ri'2$ attached to indi6idua&. The ri'2$ 1hich can be in'ured again't inc&ude fire$ the (eri& of 'ea$ death$ incident$ I burg&ary. "ny ri'2 contingent u(on the'e may be in'ured again't at a (remium commen'urate 1ith the ri'2 in6o&6ed. In'urance i' actua&&y a contract bet1een * (artie' 1hereby one (arty ca&&ed in'urer underta2e' in e8change for a fi8ed 'um ca&&ed (remium to (ay the other (arty ha((ening of a certain e6ent. In'urance i' a contract 1hereby$ in return for the (ayment of (remium by the in'ured$ the in'urer' (ay the financia& &o''e' 'uffered by the in'ured a' a re'u&t of the occurrence of unfore'een e6ent'. With the he&( of in'urance$ &arge number of (eo(&e e8(o'ed to a 'imi&ar ri'2 ma2e' contribution' to a common fund out of 1hich the &o''e' 'uffered by the unfortunate fe1$ due to accidenta& e6ent'$ are made good.

!RIEF HISTORY OF INSURANCE SECTOR IN INDIA
The in'urance 'ector in India ha' come a fu&& circ&e from being an o(en com(etiti6e mar2et to nationa&i;ation and bac2 to a &ibera&i;ed mar2et again.Tracing the de6e&o(ment' in the Indian in'urance 'ector re6ea&' the B>+degree turn 1itne''ed o6er a (eriod of a&mo't .<+ year'. The bu'ine'' of &ife in'urance in India in it' e8i'ting form 'tarted in India in the year .,., 1ith the e'tab&i'hment of the Orienta& !ife In'urance Com(any.

SOME OF THE IMPORTANT MILESTONES IN THE LIFE INSURANCE !USINESS IN INDIA ARE:
B 2 - The Indian !ife "''urance Com(anie' "ct enacted a' the fir't 'tatute to regu&ate the &ife in'urance bu'ine''. B28 - The Indian In'urance Com(anie' "ct enacted to enab&e the go6ernment to co&&ect 'tati'tica& information about both &ife and non-&ife in'urance bu'ine''e'. B+8 - Ear&ier &egi'&ation con'o&idated and amended to by the In'urance "ct 1ith the ob/ecti6e of (rotecting the intere't' of the in'uring (ub&ic. B5C - 245 Indian and foreign in'urer' and (ro6ident 'ocietie' ta2en o6er by the centra& go6ernment and nationa&i;ed. !IC formed by an "ct of 4ar&iament$ 6i;. !IC "ct$ .<=>$ 1ith a ca(ita& of R'. = crore from the )o6ernment of India.

SOME OF THE IMPORTANT MILESTONES IN THE LIFE INSURANCE !USINESS IN INDIA ARE:

B0, - The Indian Mercanti&e In'urance !td. 'et u($ the fir't com(any to tran'act a&& c&a''e' of genera& in'urance bu'ine''.

B5, - )enera& In'urance Counci&$ a 1ing of the In'urance "''ociation of India$ frame' a code of conduct for en'uring fair conduct and 'ound bu'ine'' (ractice'.

BC8 - The In'urance "ct amended to regu&ate in6e'tment' and 'et minimum 'o&6ency margin' and the Tariff "d6i'ory Committee 'et u(.

B,2 - The )enera& In'urance %u'ine'' ENationa&i;ationF "ct$ .<C* nationa&i;ed the genera& in'urance bu'ine'' in India 1ith effect from .'t 9anuary .<CB.

in'urer' ama&gamated and grou(ed into four com(anie'A 6i;. the Nationa& In'urance Com(any !td.$ the Ne1 India "''urance Com(any !td.$ the Orienta& In'urance Com(any !td. and the United India In'urance Com(any !td. )IC incor(orated a' a com(any.

INDIAN INSURANCE INDUSTRY:

I123(e(2A
In'urance indu'try$ a' on ..D.*+++$ com(ri'ed main&y t1o (&ayer'7 the 'tate in'urer'7

L$/e I123(e(2:
♦ !ife In'urance Cor(oration of India E!ICF

Ge1e('7 I123(e(2:
•

)enera& In'urance Cor(oration of India E)ICF E1ith effect from #ecN*+++$ a Nationa& Rein'ureF

)IC had four 'ub'idiary com(anie'$ name&y E1ith effect from #ecN*+++$ the'e 'ub'idiarie' ha6e been de-&in2ed from the (arent com(any and made a' inde(endent in'urance com(anie'. .. The Orienta& In'urance Com(any !imited *. The Ne1 India "''urance Com(any !imited$ B. Nationa& In'urance Com(any !imited D. United India In'urance Com(any !imited

LIFE INSURANCE COMPANIES:
S.No. Regi'tration Name of the Com(any Number . * B D = > C , < .+ .. .* .B .+. .+D .+= .+C .+< ..+ ... ..D ..> ..C .*. .** .*C H#FC Standard !ife In'urance Com(any !td. Ma8 Ne1 5or2 !ife In'urance Co. !td. ICICI 4rudentia& !ife In'urance Com(any !td. ota2 Mahindra O&d Mutua& !ife In'urance !imited %ir&a Sun !ife In'urance Com(any !td. Tata "I) !ife In'urance Com(any !td. S%I !ife In'urance Com(any !imited IN) :y'ya !ife In'urance Com(any 4ri6ate !imited %a/a/ "&&ian; !ife In'urance Com(any !imited Met!ife India In'urance Com(any 46t. !td. "M4 Sanmar !ife In'urance Com(any !imited. "6i6a !ife In'urance Co. India 46t. !td. Sahara India In'urance Com(any !td.

GENERAL INSURANCE COMPNIES:
S"No" Reg$2%('%$o1 N3>De( . .+* Roya& Sundaram "&&iance In'urance Com(any !imited N'>e o/ %:e Co>6'1&

*

.+B

Re&iance )enera& In'urance Com(any !imited.

B

.+>

IFFCO To2yo )enera& In'urance Co. !td

D

.+,

T"T" "I) )enera& In'urance Com(any !td.

=

..B

%a/a/ "&&ian; )enera& In'urance Com(any !imited

>

..=

ICICI !ombard )enera& In'urance Com(any !imited.

C

.*B

Cho&amanda&am )enera& In'urance Com(any !td.

,

.*D

E8(ort Credit )uarantee Cor(oration !td.

!ENEFITS OF LIFE INSURANCEE
"(art from the in'urance co6erage there are many other ad6antage' 1ith a &ife in'urance (o&icy. 4o&icy o1ner can a6ai& &oan' from ban2' and other financia& in'titution' 1ith a &ife in'urance (o&icy. Indi6idua&' can a6ai& ta8 benefit' a' (er Income ta8 de(artment of IndiaA' ru&e' 1ith an in6e'tment in &ife in'urance (o&icy. It i' a&'o a good in6e'tment method for future need'. "bo6e a&& the (o&icy o1ner get' &ife in'urance co6erage for the in'ured (eriod.

R$2F 5oGe(7 -!ife In'urance contract' a&&o1 an indi6idua& to ha6e a ri'2 co6er
again't any unfortunate e6ent of the future.

T'= De#35%$o17 - Under 'ection ,+C of the Income Ta8 "ct of .<>. one can
get ta8 deduction on (remium' u( to one hundred thou'and ru(ee'. !ife In'urance (o&icie' thu' decrea'e the tota& ta8ab&e income of an indi6idua&.

Lo'12: * "n indi6idua& can ea'i&y acce'' &oan' from different financia&
in'titution' by (&edging hi' in'urance (o&icie'.

Re%$(e>e1% P7'11$1g: * What had (ro6ided (rotection again't the financia&
con'e3uence' of (remature death may no1 be u'ed to he&( them en/oy their retirement year'. Moreo6er the ca'h 6a&ue can be u'ed a' an additiona& income in the o&d age.

E#35'%$o1'7 Nee#2: * Simi&ar to retirement (&anning the ca'h 6a&ue' that f&o1
from one' &ife in'urance 'cheme' can be uti&i;ed for educationa& need' of the in'urer or hi' chi

INSURANCE REGULATORY DE8ELOPMENT AUTHORITY (IRDA)
On the recommendation of Ma&hotra Committee$ an In'urance Regu&atory #e6e&o(ment "ct EIR#"F (a''ed by Indian 4ar&iament in .<<B. It' main aim 1a' to acti6ate an in'urance regu&atory a((aratu' e''entia& for (ro(er monitoring and contro& of the In'urance indu'try. #ue to thi' "ct 'e6era& Indian (ri6ate com(anie' ha6e entered into the in'urance mar2et$ and 'ome com(anie' ha6e /oined 1ith foreign (artner'. In economic reform (roce''$ the In'urance Com(anie' ha' gi6en boo't to the 'ocio-economic de6e&o(ment (roce''. The huge amount of fund' that

are at the di'(o'a& of In'urance Com(anie' are directed a' de'ired a6enue' &i2e hou'ing$ 'afe drin2ing 1ater$ e&ectricity$ (rimary education and infra'tructure. "bo6e a&& the (o&icyho&der' get' better (ricing of (roduct' from com(etiti6e in'urance com(anie'.

LI!ERALISATION
The o(ening u( of In'urance 'ector 1a' a (art of the ongoing &ibera&i;ation in the financia& 'ector of India. The domain of State-run in'urance com(anie' 1a' thro1n o(en to (ri6ate enter(ri'e on #ecember C$ .<<<$ 1ith the introduction of the In'urance Regu&atory and #e6e&o(ment "uthority EIR#"F %i&&. The o(ening u( of the 'ector ga6e 1ay to the 1or&d 2no1n name' in the indu'try to enter the Indian mar2et through tie-u(' 1ith the eminent bu'ine'' hou'e'. What 1a' once a 3uiet bu'ine'' i' becoming one of the hotte't bu'ine''e' todayM

POST*LI!ERALISATION
The changing face of financia& 'ector and the entry of 'e6era& com(anie' in the fie&d of !ife In'urance 'egment are one of the 2ey re'u&t' of the'e &ibera&i;ation effort'. In'urance bu'ine'' by 1ay of generating (remium income add' 'ignificant&y to the )#4. #e'(ite the fact that the mar2et i' 6a't in India for the In'urance bu'ine''$ the co6erage i' far &e'' com(ared 1ith the internationa& 'tandard'. E'timate' 'ho1 that a meager B=-D+ mi&&ion$ out of a (o(u&ation of <=+ mi&&ion$ ha6e come 'o far under the umbre&&a of the in'urance indu'try. The (otentia& mar2et i' 'o huge that it can gro1 by .= to .C (er cent (er annum. With

the entry of (ri6ate (&ayer'$ the Indian In'urance Mar2et may fina&&y be ab&e to ma2e dee(er (enetration in to ne1er 'egment' and e8(and the mar2et 'i;e manifo&d. The 3ua&ity of 'er6ice 1i&& a&'o im(ro6e and there 1i&& be 1ide The !ife in'urance mar2et in India i' &i2e&y to be ri'2y in the initia& 'tage'$ but thi' 1i&& im(ro6e in the ne8t three to fi6e year' Therefore$ it may be ad6antageou' to be a 'econd-round entrant. In the !ife in'urance mar2et the need ri'2 a''e''ment 'y'tem' and data that are the 2ey to 'ucce'' in the !ife in'urance mar2et are 'ignificant&y underde6e&o(ed in India e6en today

.

LIFE INSURANCE COMPANIES IN INDIA
L$/e I123(e( $1 P3D7$5 Se5%o( L$/e
 !ife In'urance Cor(oration of India

L$/e I123(e(2 $1 P($G'%e Se5%o(
 ICICI 4rudentia& !ife In'urance  %a/a/ "&&ian; !ife  H#FC Standard !ife

 %ir&a Sun &ife  S%I !ife In'urance  ota2 Mahindra O&d Mutua& !ife In'urance

 "6i6a !ife In'urance  Re&iance !ife In'urance Com(any !imited.  Tata "I) !ife  Met!ife India !ife In'urance  IN) :y'ya !ife In'urance  Ma8 Ne1 5or2 !ife In'urance

P3D7$5 '1# 6($G'%e 7$/e $123('15e 5o>6'1$e2 >'(Fe% 2:'(e
With a rene1ed thru't on grou( co6er' and 'ucce'' of go&den /ubi&ee (o&icy N%ima )o&dN$ !IC 'a1 *C (er cent gro1th in bu'ine'' at o6er R' .+$+++ crore ti&& October thi' fi'ca& but (ri6ate (&ayer' aggre''i6e&y increa'ed their mar2et 'hare re(ort' Economic Times. "mid a 'tiff com(etition bet1een the 'tate-o1ned !IC and

(ri6ate (&ayer'$ the &ife in'urance indu'try &ogged a hand'ome B, (er cent gro1th in (remium income from fre'h (o&icie' at R' ==<BD crore in financia& year *++C .

I123(e(2 P3D7$5 2e5%o( P($G'%e 2e5%o( TOTAL

A>o31% o/ 5o1%($D3%$o1 55B+4 5(o(e2 B2,B 5(o(e ,52 + 5(o(e

H o/ 5o1%($D3%$o1 ,4"4 25"C 00

MA()ET SHA(E O* +UBL,- A.D +(,/ATE L,*E ,.SU(A.-E ,. ,.D,A

25.6

74.4
public private

PRI8ATE LIFE INSURANCE COMPANIES MARKET SHARE 4ITH ACCORDANCE TO PREMIUM The &ife in'urance indu'try c&oc2ed D< (er cent gro1th in ne1 bu'ine''e'$ 1hi&e genera& in'urance (&ayer' 'a1 .> (er cent increa'e in the current financia& year. Strong (erformance by !ife In'urance Cor(oration$ ICICI 4rudentia& and S%I !ife he&(ed the .> (&ayer-'trong &ife in'urance indu'try to mo( u( R' C=$*.B

crore in *++C financia& year com(ared 1ith R' >+$*=+ crore co&&ected in the &a't year$ according to data com(i&ed by the In'urance Regu&atory and #e6e&o(ment "uthority.

Ho1e6er$ 'ome &ife in'urer' 'uch a' %a/a/ "&&ian;$ IN) :y'ya !ife and Re&iance !ife 'a1 a increa'e in (remium co&&ection' during the (eriod under re6ie1.

The countryA' &arge't &ife in'urer$ !IC$ 'a1 ne1 (remium' gro1 D< (er cent to R' ==$<BD crore in *++C& by 'e&&ing B$,*$*<$*<* (o&icie'

The .= (ri6ate (&ayer' together 'a1 their bu'ine'' gro1 B* (er cent to R' .<*C< crore 1ith a mar2et 'hare of *=.> (er cent. P(e>$3> Co77e5%e# !& A77 P($G'%e I123('15e Co>6'1$e2 $1 FY * 2008

PREMIUM INSURERS (R2" $1 5(o(e2)

ICICI 4rudentia& %a/a/ "&&ian; S%I !ife H#FC Standard

5254 42CB 25CC C24

Ma8 Ne1 5or2 !ife Tata "I) "6i6a Re&iance !ife %ir&a Sun &ife ota2 Mahindra O&d Mutua& IN) :y'ya Met !ife Shriram !ife Sahara !ife

B20 C42 ,24 B+0 882 C 4 4C, 011 5 4+

So3(5e: The Indian Counci& for Mar2et Re'earch EICMRF

COMPETITION SCENARIO IN INSURANCE SECTOR
!ife in'urance mar2et to-day in our country i' not the 'ame for ! I C a' it 1hat it 4rior to the year *+++. %ecau'e of the a((earance of (ri6ate in'urance the in'urance 'cenario in &ife in'urance mar2et ha' tota&&y changed. 'e6ere com(etition in offering ne1 (roduct $(rice$ return and mar2eting ha' o(ened a 1ide range of o(tion' among't the &ife in'urance buyer' .Mar2et today i' f&ooded 1ith 6ariety of rider benefit' offered by in'urance 6ying 1ith each other and boa'ting of 'er6ing the (o&icy ho&der' 1ith u(dated techno&ogy dri6e' .In thi' com(etition I C ha' ne6er &agged behind and true to it' 1inning '(rit e8hibited in the (a't decade' $ta2en the com(etition thro1 u( by the (ri6ate in'urance com(anie' in it' 'tride and ha' been doing fair&y 1e&& by reengineering the (rocedure' $bringing inno6ati6e (roduct' $fine tuning the 'y'tem $embar2ing on 'tructura& change' etc.

The mono(o&y en/oyed by !IC i' no &onger there 'ince the year *+++.there are *+ (ri6ate in'urance com(anie' in India. IR#" initia&&y a&&o1ed foreign (artner'hi( 1ith *>L e3uity u(. To name the fe1 INDIAN PROMOTOR ICICI %an2 %a/a/ "uto S%I The FOREIGN PARTNER COMPANY NAME ICICI 4rudencia& %a/a/ "&&ian; S%I !ife

4rudencia& in'.co$ U. . "&&ian; )ermany Cardiff $France

com(etition 'cenario ha' gi6en un(recedented o((ortunity to !IC for

recogni;e da&& it' &imb' of 'a&e' and 'er6ice.)reen channe& a&& time' 'ucce'' for com(&eting ne1 bu'ine''.due to information techno&ogy the !IC ba'ed on IT 'er6ice'.

CH"4TER-III
COM4"N5 4ROFI!E

COMPANY PROFILE OF LIC
ORGANISATIONAL SET*UP OF LIC
On .<th 9anuary$ .<=>$ the (re'ident of India (romu&gated 0!ife in'urance EEmergency (ro6i'ion'F Ordinance@ a' a re'u&t of 1hich the management and contro& of !ife in'urance %u'ine'' in India inc&uding foreign in'urance %u'ine'' of India in'urer' "nd India %u'ine'' of foreign in'urer' 1ere 6e'ted in centra& )o6t.thu' !ife in'urance %u'ine'' in India (a''ed o6er form (ri6ate 'ector to (ub&ic 'ector ?a 'te( ne6er attem(ted any 1here in the 1or&d on 'uch a &arge 'ca&e. The !ife in'urance Cor(oration "ct E"ct OOOI of .<=>F 1a' (a''ed by the (ar&iament. In 9une .<=> 1hich came in force on .'t 9u&y$ .<=>.the !IC of India came into e8i'tence on .'t Se(tember$ .<=>.

Organi;ation of the cor(oration fo&&o1' the (attern &aid do1n in the !IC of India "ct$ .<=>.the Cor(oration con'i't' of a %oard of #irector' a((ointed by the Centra& )o6ernment .the Chairman and the manger #irectorJ' are Member' of the %oard. The number of Member' 'ha&& not e8ceed .>.the !IC of India "ct 1a' (ro6ided for =the con'titution of an E8ecuti6e Committee and an In6e'tment committeeG the former i' entru'ted 1ith the genera& 'u(erintendence and the &atter gi6e' ad6ice' on the in6e'tment matter'. The Cor(oration can a&oe' con'titute "d6i'ory committee'. In addition$ there are Pona& "d6i'ory %oard' for each Pone and (o&icyho&derA' counci&' for each #i6i'iona& office a' (ro6ided for in the !IC of India "ct. The'e %oard' and counci&' offer guidance in certain '(ecific area' to the Pona& and #i6i'iona& Manager'. !IC had underta2en a com(rehen'i6e (rogram of recognitation in .<,+ -,. the management had to dea& fair&y in the (rogramme 1ith 'e6era& i''ue'G 1hat 1a' the organi;ation 'et out to achie6eM What change' recogni;e their o1n 'trength 1ea2ne''e'M The e8erci'e had to inc&ude a de'ire to under'tand their ro&e changing 'y'tem their organi;ation. "fter the 'erie' of 'tudie' di'cu''ion on 1or2ing (a(er !IC management identified the area' of concentration in the 'ort run tho'e in the futer (rogramme' 1or2. The (rogramme' re3uired decentra&i;ing of 1or2 $our in the 1or2f&o1 of re&ation'hi(' di6i'iona& to branch office' in'ta&&ation of machine

'u((ort and (hyca&mo6ent of the em(&oyee' $in one di6i'ion a&ong the (re and (o't recognition 'taff(o'ion 1a' a' fa&&o1' 7S%'// !e/o(e A/%e( !('15: O//$5e 500 500 D$G$2$o1'7 O//$5e 400 400

The ro&e of each of the office' each (o'ition had to be defined and under'tood by the incumbent'. The im(&ementation the 'tudy 1ar carry out by the o(erating manager' .'(ecia& team' ca&&ed@ the orgation'ationa& im(ro6ement ce&& EOICF@

!RANCH ORGANIIATION:

Under OIC 'et u( (rofit center !IC %ranch office fo&&o1ing guide&ine' 1a' con'idered .. each 'ection in the branch mu't be re'(on'ib&e for '(ecific ta'2 and coordination their 1or2 1ith other'

*. each unit mu't ha6e a budget and the 'u(er6i'or concerned 'hou&d e8erci'e contro& by e8ce(tion

B. No 'ection 'hou&d be norma&&y &arger than .+-.* em(&oyee' that (er'ona& re&ation'hi(' are e'tab&i'hed bet1een the 'u(er6i'or and the 'u(er6i'ed.

D. To enab&e them to function effecti6e&y &arger branche' (ro6ide better 'er6ice to (o&icyho&der.

DI8ISIONAL ORGANISATION:

The #i6i'iona& office in di'charging the function' of contro& and 'er6ice mu't en'ure that the 'ubordinate office i' (erforming a&& and gi6e it the direction that it may need and ta2e remedia& mea'ure' in good time 'o that the (&anned re'u&t are achie6ed. The guide&ine' for a #i6i'iona& Organi;ation 1ou&d be a' fo&&o1'7.. Each #e(artment mu't be autonomou' to the e8tent technica&&y fea'ib&e and 'hou&d ha6e di'crete area of re'(on'ibi&ity. *. Tota& 'u(er6i'ory re'(on'ibi&ity for %ranch (erformance mu't be a''igned to a 'ing&e (oint of contact in #i6i'iona& Office. For thi' (ur(o'e$ 'a&e' and 'er6ice function are (ut under the charge of Mar2eting manager.

B. #i6i'iona& Office mu't be concerned a' much 1ith future gro1th and de6e&o(ment a' 1ith achie6ement of current re'u&t'. D. SSS I )IS function' 'hou&d be inde(endent&y hand&ed by %ranch Office'.

The reorgani;ation (rogramme ha' enhanced the interna& ca(abi&itie' of !IC to dea& 1ith the fo&&o1ing7-

I1 (e26e5% %o !32$1e22:
• )reater mar2et '(read to different 'egment of the (o(u&ation and geogra(hica& di'(er'a&7 • • • %etter mar2et information for (roduct de'ign and de6e&o(ment7 Cu'tomer orientation through 'ing&e 1indo1 'er6ice7 Su(er6i'ion of the 3ua&ity of 'a&e to contro& o6era&& co't of de6e&o(ment$ (romotion and 'a&e'G

Fo( I1%e(1'7 M'1'ge>e1%:
• • %etter foreca'ting and (rediction of (erformance and 'ur(&u'. %etter contro& of (erformance data for mid-cour'e correction 1here nece''ary.

•

#ata for carrier (&anning and gro1th of em(&oyee ro&e' are more '(ecific and definedG

NOTE: A11e=3(e I 'ho1 the gro1th of !IC Office' in India form ..<..<=> to A11e=3(e II gi6e' brief de'cri(tion of Management committee' at %ranch and #i6i'iona& !e6e&'.

GRO4TH OF LIC OFFICES IN INDIA
(eriod .<>D->= .<>=->> .<><-C+ .<C<-,+ .<,+-,. .<,D-,= .<,=-,> .<,>-,C .<,C-,, .<,<-<+ .<<+-<. .<<.-<* .<<*-<B .<<B-<D .<<D-<= .<<=-<> .<<>-<C .<<C-<, No of #i6i'ion' B= B> B> D. D* DB =, =< >D >< C. ,B <B .++ .++ .++ .++ .+,

ANNE?URE*I

No of %ranch Office =BB >,+ CD* ,*> ,,< <=, .+*B ..+C .*,+ .B=D .D*C .=*, .>=. .CCD .<+> *+*. *+*D *+D,

ANNE?ERE*II

MANAGEMENT COMMITTEES:*

The management committee' 1i&& con'i't' of the Head of Office and the de'igned head' of de(artment'$ 1here they are officer' or Higher )rade "''i'tant'. Management committee in the branche' and di6i'iona& office' 1i&& ha6e '(ecified function'. Function of the'e committee'$ com(aring of (er'on' right from the cadre of higher grade a''i'tant'.

THE !RANCH MANAGEMENT COMMITTEES:*

The branch management committee con'i't' of the officer-in-charge of the branch and the head' of the 6ariou' de(artment' of the branch. The'e head' of de(artment' are in 6ariou' cadre' and direct&y re(ort to the officer-in charge of the a''i'tant' and admini'trati6e officer'. U'ua&&y there are fi6e 'ection' in the branch$ 6i;7 Sa&e'$ Ne1 %u'ine''$ 4o&icy Ser6icing$ "ccount and Office' Ser6ice'

INFRASTRUCTURE

• • • • •

*+D, branche'G BCB 'ate&&ite office'G .+, di6i'ion'G , ;one' G.centra& office. .++LCom(uteri'ation of a&& branche' and 'er6ice'. *+D, branche' net1or2ed through W " N I:RS .*=. in India Information io'2' IOS S ? .B= on &ine and .= off-&ine com(uter Touch Screen

•

Ca&& Center' at "hmadabad$ %anga&ore$ Mumbai$ Chandigarh$ Chennai$ #e&hi$ Erna2u&um

• • •

Erna2u&um$ Hyderabad$ Indore$ 9ai(ur$ Ca&cutta$ 4une I )u1ahati. 4remium (ayment ? "ny !IC %ranch in India 4remium (ayment through Internet and "TM of Cor(oration %an2 I UTI %an2

•

4remium (ayment through ECS EE&ectronic C&earing Sy'temF at #e&hi $!udhiana$ "mrit'ar$ 9a&andhar$ Chandigarh$ an(ur$ "&&ahabad$ :arana'i$

!uc2no1$ #ehradun$ )ora2h(ur$ "gra$ 9ai(ur$ Udai(ur$ 9odh(ur$ Ra/2ot$ "hmedabad$ :adodara$ Surat$ Mumbai$ )oa$ 4une$ o&ha(ur$ Na'hi2$

"urangabad$ Nag(ur$ Indore$ %ho(a&$ )1a&ior$ 9aba&(ur$ Rai(ur$ Hyderabad$ :i/aya1ada$ :i'ha2ha(atnam$ %anga&ore- I$ My'ore$ Udu(i$ #har1adEhub&iF$ Chennai I$ :e&&ore$ Than/a6ur$ Madhurai$

4remium (ayment through SMS

PROUDUCT STRENGTH

•

So6ereign' )uarantee by the Centra& )o6ernmen of India UJS.BC of !IC of India "ct .<=C.

• • • • • •

!o1e't (remium Rate' !ea't (remium for "% Right form Ne1 %orn to aged Highe't %onu' Rate' =+ (roduct' a' on date. Inno6ati6e (roduct' &i2e tab&e <.ENe1 /ana Ra2'haF$.D<E9ee6an "nandF$ <+.EHe&th (&u'F etc.

•

In'urance for e6en unborn chi&d$e6en if born 1ith c&eft (a&&etE9ee6an %harathiF

SER8ICE OFFERED !Y LIC

GRACE MODES OF PAYMENT OF PREM
4remium$ other than 'ing&e (remium$ may be (aid by (o&icyho&der in year&y$ ha&f year&y$ 3uarter&y in'ta&&ment'. 4remium on the due date'.

RE8I8AL OF LAPSED POLICY:
If the (remium i' not (aid 1ithin the day' of grace$ the (o&icy &a('e'. Re6i6ed 1ithin a (eriod of fi6e year' from the date of un(aid (remium during the &ife-time of the a''ured but before date of maturity$ if a((&icab&e.

NOMINATION JASSIGNMENT OF POLICY:
When the (o&icy money become' due for (ayment on death of the (o&icyho&der$ it can be (aid on&y to the (er'on. For 3uic2 'ett&ement of c&aim'$ it i' in the intere't' of the (o&icyho&der to affect a no(mination in re'(ect of their (o&icy.

CHANGE OF ADDERESS AND TRANSFER OF POLICY RECORDS:

"' and 1hen a (o&icyho&der de'ire' change' of hi' addre'' in the cor(oration record'$ intimation of 'uch change 'hou&d be gi6en to the branch office 'er6icing hi' (o&icy. The correct addre'' and (hone no. faci&itate better 'er6ice and 3uic2er 'ett&ement of c&aim'.

CARE OF POLICY DOCUMENT AND LOSS OF POLICY:
The (o&icy document E(o&icy bondF i' the e6idence of contract bet1een the in'urer and the in'ured. It ha' to be 'ubmitted to the cor(oration at the &oan' Jc&aim'.

LOAN:
"t (re'ent &oan' are granted onunencumberd (o&icie' to the e8tent of <+Lof the 'urrender 6a&ue under (o&icie' 1hich are in force for the fu&& 'um a''ured and u( to,=Lof the 'urrender 6a&ue on (o&icie' 1hich are (aid u( for a reduced 'um a''ured. the minimum amount &oan (o&icy i' R'..+++J-

CLAIM !Y MATURITYJINSTALLMENT PAYMENT:
The cor(oration 'tri6e' to 'ett&e maturity c&aim' on or before the due date Sur6i6a& benefit (ayment' u( to R'.*$++$+++J-

DEATH CLAIM:
In the e6ent of the death of the &ife a''ured$ the c&aim 'hou&d intimate the fact of 'uch death to the branch office 1here the (o&icy i' being 'er6iced. the origina& (o&icy bond $ death certific2et the re3uired form' 'hou&d be 'ubmitted to the branch for getting the c&aim 'ett&ed

CLAIM RE8IE4 COMMITTEE:

The cor(oration 'ett&e' a &arge no. of death c&aim' e6ery year. On&y in the ca'e of fraudu&ent 'u((re''ion of materia& information$ the &iabi&ity 1i&& be re(udiated. The c&aim' re6ie1 committee at the centra& and ;ona& office' ha' among other member ' a retired /udge of the high courtJdi'trict court.

GRIE8ANCE REDRESSAL MACHINARY:
4o&icyho&der' grie6ance redre''a& ce&&' e8i't in a&& the office' of the cor(oration$ head by 'enior officer' they are "&& di6i'iona& office'-Manager' ECRMF "&& ;ona& office'-Regiona& Manager' ECRMF Centra& office-e8ecuti6e #irector ECRMF Cu'tomer grie6ance' can a&'o be regi'tered on our 1eb'ite 111.&icindia.in

SCHEMES OF OM!UDSMAN:
In'urance ombud'man by the go6t.of India at different center'. Com(&aint' fo&&o1ing ty(e' in ombud'man con'ideration • • • • Re(udiation of &iberty under c&aim'. #e&ay in 'ett&ement of c&aim' "ny di'(ute regarding (remium' (aid "ny di'(ute regarding the &ega& con'truction of the (o&icie' in re&ation to a c&aim.

I8RS
We ha6e D= I:RS center' (ro6iding a&& ty(e' of information on (o&icy 'er6icing. Thi' faci&ity a6ai&ab&e *DQC to a6ai&ab&e faci&ity from any of the'e center' /u't dia& .*=.

INFORMATION TECHNOLOGY

!IC of India ha' been at the forefront of IT im(&ementation in India. "&& the /ob' (roce'' are com(uteri;ed and the a&& office' of !IC are connecting through W"N. Time to time &ate't techno&ogy ado(ted and 'er6ice to (ro6ide the !IC. In it' E&ectronic #ocument Management 'y'tem (ro/ect !IC of India it' in *= corer' doc2et' in (o&icy.

C32%o>e( Ce1%($5 I1$%$'%$Ge2:
• 4orta& for our cu'tomer' ha' been 'et u(. Thi' (orta& i' 'ing&e out&et for an array of 'er6ice'. The'e 'er6ice' inc&ude (o&icy 'tatu'$ bonu' ca&icu&ation$ &oan 3uotation. • . " 'imi&ar (orta& ha' been 'tarted for agent' and de6e&o(ment officer'.

SATELLITE OFFIUCES
With a (ro6iding ea'y acce'' to it' (o&icyho&der$ !IC ha' &aunched BD+ 'ate&&ite' office'.

The'e 'ate&&ite office' 1hich are attached to the re'(ecti6e (arent branche'$ are ba'ica&&y an e8ten'ion of &arge (arent branche' for 'er6ice' to (o&icyho&der

PEOPLES MONEY FOR PEOPLES 4ELFARE

The !ife In'urance Cor(oration of India ha' been a nation bui&der 'ince it' formation in .<=>. True of nationa&i;ation$ the !IC ha' mobi&i;ed the fund' in6e'ted by the (eo(&e in the &ife in'urance for the benefit of the community at &arge.

The tota& fund' in6e'ted for the benefit of the community at &arge accumu&ated to R'.C=..*< corer' a' on B.'t march *++,. The fund' go6t. of India and IR#" 1a' regu&ated. IR#" contro&&ed fund' are in6e'ted a' fo&&o1'7-

Not &e'' then =+L i' in6e'ted in go6ernment 'ecuritie' Not &e'' then .=L i' in6e'ted in infra'tructura& and 'ocia& 'ector in6e'tment'. Not &e'' then B=L in other in6e'tment'$ to be go6erned by e8(o'ure (rudentia& norm'.

LIC PERFORMANCE 4INNING A4ARDS

OUT LOOK MONEY*NDT8

LOYALTY*200B

N"SCOM-IT-"W"R#

N#T:-4ROFIT-*++,

TRUSTE#%R"N# N#T:-4ROFIT RE"#ER-#I)EST%USINESS !E"#ER *++<

CHAPTER*I8
THEORITICAL FRAME4ORK

THEORITICAL FRAME4ORK
CUSTOMER RELATIONSHIP MANAGEMENT (CRM) I1%(o#35%$o1:
 Cu'tomer Re&ation'hi( management ECRMF i' the &ate't too& from the information techno&ogy re(ertoire 1hich enab&e'$ (romote' and de6e&o(' bu'ine''e' to1ard' better (rofitabi&ity.  " brief introduction to CRM from the manageria& (er'(ecti6e may be in order and he&( u' to a((reciate it' uti&ity for the bu'ine'' organi;ation'. The (ur(o'e of bu'ine'' i' to create cu'tomer.  The im(ortance of the cu'tomer in ma2ing brea2ing a bu'ine'' ha' &ed to greater intro'(ection$ conce(tua& c&arity and e6o&ution of cu'tomer re&ation'hi( management$ both a' an art and 'cience$ and de6e&o(ment of a((ro(riate too&' and 'oft1are for enhancing bu'ine'' and (ro&onging the

(roduct and bu'ine'' &ife cyc&e. Thi' e6o&ution ha' 'een the 'hift from the Hone timeA or 0'hort term tran'actiona&A re&ation'hi( 1ith a con'umer to a many time Ere(etiti6eF$A&ong term re&ation'hi(A management and im(ortance of the H&ife time 6a&ueA of the cu'tomer.  CRM he&(' to 'eam&e''&y integrate the (roduct and 'er6ice to cu'tomer need' in a better$ fa'ter and chea(er manner. CRM i'nAt a too& for e&ectronic data. It ha' to u'ed a' a Hbu'ine'' 'trategyA to 'e&ect and manage the mo't 6a&uab&e cu'tomer re&ation'hi(' that gi6e the be't re'u&t'. CRM i' thu' not a techno&ogy but a 'trategy ba'ed on techno&ogy

!ENEFITS OFCRM:
 The benefit' of cu'tomer re&ation'hi( management are con'idered are abounded. It a&&o1' organi;ation' not on&y to retain cu'tomer'$ but enab&e' more effecti6e mar2eting$ create' inte&&igent o((ortunity for cro'' 'e&&ing and o(en' u( the (o''ibi&ity of ra(id introduction of ne1 brand' and (roduct'.

 The benefit' &i2e co't 'a6ing'$ re6enue enhancement$ and 'trategic im(act.

 Increa'ed 'a&e' re6enue'.

 Increa'ed 1in rate im(ro6e 'ince com(anie' can 1ith dra1 from un&i2e&y or bad dea&' ear&ier on in the 'a&e' (roce''.

 Increa'ed margin'.

 Im(ro6ed cu'tomer 'ati'faction rating'.

 #ecrea'ed genera& 'a&e' and mar2eting admini'tration co't'.

TECHNOLOGY ENA!LE FOR CRM:
 #e6e&o(ment in information techno&ogy$ data 1arehou'ing and data mining ha6e made it (o''ib&e for firm' to maintain a one abo6e re&ation'hi( 1ith their cu'tomer'.  CRM i' a cu'tomer databa'e.  To( management commitment$ (er'onne& moti6ation$ u'er training and (rototy(ing the 'y'tem are the other 2ef factor' for 'ucce''fu& im(&ementation of CRM conce(t.

IMPLEMENTATION:
 Cu'tomer re&ation'hi( management i' accom(&i'hab&e by fo&&o1ing certain guide&ine'$ they are • E6a&uate and (&an.

•

Tac2&ing any one com(etence a&one 1i&& &ead to a dy'functiona& bu'ine''.

•

Succe''fu& ma'' cu'tomi;ation i' crucia& to reducing cu'tomer ac3ui'ition co't' and im(ro6ing the cro'''e&&ing ca(abi&ity.

•

Channe&' are de&i6ery mechani'm'.



CRM

re3uire'

a

'trategic

a((roach$

1hich

encom(a''e' cu'tomer information and 2no1&edge generation$ and the abi&ity to &earn from out'tanding (ractice'.

C32%o>e( /o532*'1 $>6o(%'1% $1g(e#$e1%:
 %eing cu'tomer focu'ed a&'o mean' maintaining con'tant communication and dia&ogue 1ith the cu'tomer'. En&ightened organi;ation' (ractice c&o'ed &oo( communication 1ith their cu'tomer'.  Communication mu't f&o1 both 1ay'$ fre3uent&y and continuou'&y and be 'tructured in a 1ay that enab&e' the organi;ation to monitor their (erformance from the cu'tomer (er'(ecti6e.

THE RELATIONSHIP CHANGE:
Cu'tomer re&ation'hi( management doe' not enab&e a 3uic2 1in. It i' a &ong-term a((roach that ha' to be ado(ted a' a 'trategic &e6e&. Ho1e6er$ the /ourney of under'tanding the 'trategic benefit' of re&ation'hi( management ha' /u't begun.

 To a greater degree$ com(anie' ha6e under'tood the im(&ication' of cu'tomer re&ation'hi( management and ha6e identified the ri'2 to their bu'ine'' of not doing 'o$ name&y &o'' of cu'tomer' and com(etiti6e attac2.  Mar2eter' be it (f good' or 'er6ice'$ are con'tant&y reminded to undo any di'a((ointment to the cu'tomer' and re'o&6e cu'tomer com(&aint'.  The negati6e 1ord of mouth mention' emanating from the com(&aining cu'tomer' i' far more damaging and 1ide'(read than the recommendation' of the 'ati'fied cu'tomer'

THE GOALS OF CRM:

The idea of CRM i' that it he&(' bu'ine'' u'e techno&ogy and human re'ource' to gain in'ight into the beha6ior' of cu'tomer' and the 6a&ue of tho'e cu'tomer'. if it 1or2' a' ho(ed$ a bu'ine'' can7  4ro6ide better cu'tomer 'er6ice.

 Cro''-'e&& (roduct' more effecti6e&y.  He&( 'a&e' 'taff c&o'e dea&' fa'ter.  Sim(&ify mar2eting and 'a&e' (roce''e'.  #i'co6er ne1 cu'tomer'.  Increa'e cu'tomer re6enue'.  Re'(on'e' to cam(aign'.  Shi((ing and fu&fi&&ment date'.  Sa&e' and (urcha'e data.  "ccount information.  Web regi'tration data.  Ser6ice and 'u((ort record'  #emogra(hic data.  Web 'a&e' data.

THE KEYS TO SUCCESSFEL CRM IMPLEMENTATION

 %rea2 your CRM (ro/ect do1n into manageab&e (iece' by 'etting u( (i&ot (rogram' and 'hort-term mi&e'tone'. Starting 1ith a (i&ot (ro/ect that incor(orate' a&& the nece''ary de(artment' and grou(' that get' (ro/ect'

ro&&ing 3uic2&y but i' 'ma&& enough and f&e8ib&e enough to a&&o1 tin2ering a&ong the 1ay  Ma2e 'ure your CRM (&an' inc&ude a 'ca&eab&e architecture frame1or2.  #onAt undere'timate ho1 much data you might co&&ect Ethere 1i&& be &ot'F and ma2e 'ure that if you need to e8(and 'y'tem' you 1i&& be ab&e to.  %e thoughtfu& about 1hat data i' co&&ected and 'tored. The im(u&'e 1i&& be to grab and then 'tore E:ER5 (iece of the data you can$ but there i' often no rea'on to 'tore data. Storing u'e&e'' data 1a'te' time and money.  Recogni;e the indi6idua&ity of cu'tomer' and re'(ond a((ro(riate&y. " CRM 'y'tem 'hou&d$ for e8am(&e$ ha6e bui&t-in (ricing f&e8ibi&ity.

4HICH DI8ISION SHOULD RUN THE CRM PRO.ECT;

The bigger return' come from a&igning bu'ine''$ CRM and IT 'trategie' acro'' a&& de(artment' and not /u't &ea6ing it for one grou( to run.

4HAT CAUSES CRM PRO.ECTS TO FAIL;
From the beginning$ &ac2 of communication bet1een e6eryone in the cu'tomer re&ation'hi( chain can &ead to an incom(&ete (icture of the cu'tomer. 4oor communication can &ead to techno&ogy being im(&emented 1ithout (ro(er 'u((ort or buy-in from u'er'.

• • • •

What (roduct' and 'er6ice' are 1e offering no1 and in the futureM In 1hat mar2et'M What cu'tomer grou(' 1i&& the'e (roduct' and 'er6ice' a((ea& toM Which of the'e are of mo't 6a&ue to the organi;ationM Interim' of '(endM In term' of re&iabi&ityM In term' of (rofitabi&ityM In term' of gro1th (otentia&M

•

What additiona& need' do the mo't 6a&uab&e cu'tomer grou(' ha6eM "dditiona& (roduct' additiona& 'er6ice'M

•

What different 1ay' can 1e be doing bu'ine'' to de&i6er to our cu'tomer' betterM

STRATEGIC CRM:
 CRM i' about creating a com(etiti6e ad6antage by being the be't at under'tanding communicating$ de&i6ering and de6e&o(ing e8i'ting cu'tomer re&ation'hi(' in addition to creating and 2ee(ing ne1 cu'tomer'.

 The conce(t of (roduct &ife cyc&e i' gi6ing 1ay to the cu'tomer &ife cyc&e. Focu'ing on de6e&o(ing (roduct' that antici(ate the future need' of e8i'ting cu'tomer' and creating 'er6ice' that e8tend e8i'ting cu'tomer re&ation'hi(' beyond the mere&y tran'actiona&.

 The cu'tomer &ife cyc&e 1i&& focu' on &engthening the &ife '(an of the cu'tomer 1ith the organi;ation rather than the endurance of a (articu&ar (roduct.

 Cu'tomer' ha6e changing need' a' their &ife'ty&e' a&ter-the de6e&o(ment and (ro6i'ion of (roduct' or 'er6ice' that continuou'&y 'ee2 to 'ati'fy tho'e need' i' good CRM.

 Mi''ion 'tatement' 1i&& begin to 'tructure them'e&6e' around cu'tomer 'egment' and not (roduct &ine'.

 " good CRM 'trategy 1i&& ta2e the bu'ine'' 6i'ion and a((&y it to the cu'tomer ba'e by a'2ing the fo&&o1ing 3ue'tion'7

CH"4TER-:
"N"!5SIS "N# INTER4RET"TION

ANALYSIS AND INTERPRETATION

" T'D7e 2:oK$1g %:e 'K'(e1e22 o/ LIC I123('15e Co>6'1&. TA!LE*
S"No Re26o12e . * B D Re&ati6e' Friend' Ne1'(a(er' TOT"! No o/ 6eo67e .*+ C+ B= *=+ 6e(5e1%'ge D,L *,L .DL .+L .++L

"d6erti'ement *=

10% 14% 48% 28%
INTERPRETATION
Out of .++L (eo(&e' D,L of the Re'(ondent' are a1are Re&ati6e' $ *,L of the re'(ondent' are a1are Friend' $ .DL of the re'(ondent' are a1are Ne1'(a(er'$ .+L of the re'(ondent' are a1are "d6erti'ement on the 1a&&'. #uring the 'ur6ey
1 Relatives 2 Friends 3 Newspapers 4 Advertisement

it 1a' none that e6en though ma/ority of the (eo(&e 2no1 about Re&ati6e' and Friend'

2" T'D7e2 2:oK$1g %:e 'K'(e1e22 o/ 67'12 $1 LIC 6o7$5&:o7#e( TA!LE*2
S"1o . * Re26o12e "1are Not a1are TOT"! No o/ 6eo67e *++ =+ *=+ Pe(5e1%'ge ,+L *+L .++L

20%
1 Aware 2 Not aware

INTERPRETATION:

80%

In my 'ur6ey ,+L of the re'(ondent' are a1are the !IC (&an'$ remaining *+L of them donAt 2no1 about the (&an'. Ma/ority of the (eo(&e are 2no1 about the !IC (&an'.

+" T'D7e2 2:oK$1g %:e 'K'(e1e22 o/ P(e>$3> 6'&>e1% /'5$7$%$e2 L$Fe ATM2) SMS) I1%e(1e%2 '>o1g %:e LIC 6o7$5& :o7#e(2" TA!LE*+
S no . * Re'(on'e "1are Not a1are TOT"! No of (eo(&e .=+ .++ *=+ (ercentage >+L D+L .++L

40%
1 Aware

60%2 Not aware

INTERPRETATION:
>+L of the re'(ondent' are a1are of the other (remium (ayment faci&itie' &i2e "TM'$ SMS$ Internet' etc.D+L of them donAt 2no1 about tho'e faci&itie' .#uring the 'ur6ey $it 1a' 2no1n that e6en though ma/ority of the (eo(&e 2no1 about the ne1 age faci&itie' to (ay the (remium $they are ma2ing the (ayment' through the agent' it'e&f 1hich i' not a good (ractice .Hence it can be 'ugge'ted that the !IC 'hou&d &aunch a communication cam(aign to increa'e the faci&itie' &i2e "TM'$SMS$Internet' to ma2e the (remium' 1hich are more con6enient and fa'ter .

4" T'D7e 2:oK$1g %:e 6(e/e( 6'&>e1% >e%:o#2 7$Fe C'2:) C(e#$% 5'(#) C:eL3e /'5$7$%$e2 '>o1g %:e LIC 6o7$5&:o7#e(2" CHART*4
S 1o . * B Re26o12e Ca'h Credit card Che3ue Tota& No o/ 6eo67e ..+ ,+ >+ *=+ 6e(5e1%'ge >DL *+L .>L .++L

1 Cash 2 Credit card

16%

3 Cheq e

20%

64%

INTERPRETATION7
In thi' Sy'tem >DL of cu'tomer' (refer Ca'h (ayment method$ *+L of cu'tomer' (refer Credit card (ayment method and the remaining .>L of cu'tomer' (refer Che3ue (ayment method. In my 'ur6ey the ma8imum re'(ondent' (refer Ca'h (ayment becau'e it i' 6ery comfortab&e to them. Each and e6ery (er'on doe'nAt u'e Credit card' and Che3ue boo2'.

5" T'D7e 2:oK$1g %:e 6(e/e( %e(> 6'&>e1% 6(e>$3>2 7$Fe Mo1%:7&) 93'(%e(7&) H'7/*&e'(7&) Ye'(7&"
Re26o12e Month&y Ruetery Ha&f-year&y 5ear&y TOT"! S 1o . * B D No o/ 6eo67e D+ D+ =+ .*+ *=+ Pe(5e1%'ge .>L .>L *+L D,L .++L

16%

48%

16%
1 !onthl" 2 # etar"

20%

3 $al%&"earl" 4 'earl"

INTERPRETATION:
In thi' 'y'tem .>L of re'(ondent' (refer month&y mode of (ayment$ .>L of re'(ondent' (refer 3uarter&y mode of (ayment$ *+L of re'(ondent' (refer ha&f year&y mode of (ayment and the remaining D,L of re'(ondent' (refer year&y mode of (ayment. Ma/ority of the (eo(&e 'hou&d (refer the year&y (remium. Ma8imum number of /ob ho&der' 'hou&d (refer the month&y (remium becau'e it i' ea'y to (ay for them 1hen they recei6e month&y 'a&ary.

C" T'D7e 2:oK$1g %:e 'K'(e o/ I8RS Ce1%e(2 /o( I1/o(>'%$o1 'Do3% '77 %&6e o/ LIC 67'12 $1 6o7$5& :o7#e(2" TA!LE*C"
S 1o . * Re26o12e "1are Not a1are TOT"! No o/ 6eo67e =+ *++ *=+ Pe(5e1%'ge *+L ,+L .++L

20%

1 Aware 2 Not aware

80%

INTERPRETATION:
*+L of the (eo(&e are getting (ro(er re'(on'e I:RS EInteracti6e :oice Re'(on'e Sy'temF center'$ ,+L of them donAt 2no1 about the'e faci&itie'. #uring the 'ur6ey ma/ority of the (eo(&e donAt 2no1 thi' faci&ity.

," T'D7e 2:oK$1g %:e C7'$> 2e%%7e>e1%2 $1 LIC :o7#e(2 G$eK" TA!LE*,
S 1o . * Re26o12e Sett&ed C&aim' Re/ected C&aim' TOT"! No o/ 6eo67e *D+ .+ *=+ Pe(5e1%'ge <>L DL .++L

4%

1 )ettled Claims 2 Re*ected Claims

(6%

INTERPRETATION:
<>L of the re'(ondent' are 'ett&ed c&aim' in !IC$ DL of the re'(ondent' c&aim' are re/ected .#uring the 'ur6ey ma/ority of the (eo(&e 'ett&ed c&aim' in !IC.

8" T'D7e 2:oK$1g %:e 'K'(e 'Do3% 7o'1 g('1%$1g /'5$7$%$e2 '>o1g %:e LIC 6o7$5& :o7#e(2"

TA!LE*8
S"1o Re26o12e "1are Not a1are TOT"! No" o/ 6eo67e C= .C= *=+ Pe(5e1%'ge B+L C+L .++L

S

30%
Aware Not aware

+0%

INTERPRETATION7
B+L of the Re'(ondent' are a1are &oan faci&ity$ C+L of them donAt 2no1 about thi' faci&ity. #uring the 'ur6ey ma/ority of the (eo(&e donAt 2no1 about thi' faci&ity.

B" T'D7e 2:oK$1g %:e 'K'(e1e22 o/ :o32$1g /$1'15e /'5$7$%& '>o1g %:e LIC 6o7$5& :o7#e(2" TA!LE*B
S"No . * (e26o12e "1are Not a1are Tota& No" o/ 6eo67e .>+ <+ *=+ Pe(5e1%'ge >DL B>L .++L

36%
1 Aware 2 Not aware

64%

INTERPRETATION:
>DL of the re'(ondent' are a1are hou'ing finance faci&ity$ B>L of them donAt 2no1 about thi' faci&ity. #uring the 'ur6ey ma/ority of the (eo(&e 2no1 about hou'ing finance faci&ity in !IC.

0" T'D7e 2:oK$1g 'K'(e1e22 'Do3% %:e 2o5$'7 25:e>e2 7$Fe A'> A#>$ !:e>' Yo@'1').'1'2(ee !e>' &o@'1')Y"S"R"AD:'&':'2%'> $1 LIC 6o7$5& :o7#e(2" TAGLE* 0
S"No . * Re26o12e "1arene'' Not "1arene'' TOT"! No" o/ 6eo67e >+ .<+ *=+ Pe(5e1%'ge *DL C>L .++L

24%
1 Awareness 2 Not Awareness

+6%
INTERPRETATION:
*DL of the re'(ondent' are a1are of the 'ocia& 'cheme' &i2e "am "dmi %hema 5o/ana$9ana're %hema yo/ana$ 5.S.R."bhayaha'tam etc. C>L of them donAt 2no1 about the'e 'cheme'. #uring the'e 'ur6ey ma/oritie' of the (eo(&e donAt 2no1 about 'ocia& 'cheme' &i2e "am "dmi %hema 5o/ana $ 9ana're %hema yo/ana $ 5.S.R."bhayaha'tam etc.

" T'D7e 2:oK$1g %:e o6$1$o1 o/ %:e LIC Po(%'7 Po7$5& :o7#e(2. TA!LE*
S"No" . * Re26o12e )ood "6erage TOT"! No" o/ 6eo67e **+ B+ *=+ Pe(5e1%'ge ,,L .*L .++L

12%

1 ,ood 2 Avera-e

88%

INTERPRETATION7
,,L of the re'(ondent' are good o(inion in !IC 4orta& 4o&icy ho&der'$ .*L of them donAt (ro(er o(inion in !IC. #uring in my 'ur6ey ma/ority of the (eo(&e e8(re'' good o(inion in !IC.

2" T'D7e 2:oK$1g 'K'(e o/ 532%o>e( g($eG'15e2 $1 :$e('(5:& 7eGe7 o/ LIC 6o7$5& :o7#e(2"

TA!LE* 2

S"No . *

Re26o12e "1are Not "1are TOT"!

No" o/ 6eo67e ..+ .D+ *=+

6e(5e1%'ge =>L DDL .++L

44% .6%
1 Aware 2 Not Aware

INTREPRETATION:
DDLof the Re'(ondent' are a1are of the cu'tomer grie6ance'$ =>L of them donAt 2no1 about thi' faci&ity. E6ery Monday 'ett&ed cu'tomer grie6ance' in !IC. It i' one of the o((ortunitie' to the (o&icy ho&der'. Ma/ority of the (eo(&e do not 2no1 about thi' faci&ity.

CHAPTER*8I
FINDINGS SUGGESTIONS CONCLUSION

FINDINGS

T:e /$1#$1g2 o/ %:e 2%3#& '(e
• Mo't of the (eo(&e are intere'ted to in'ure (o&icie' a1are of in'urance (o&icie' from their friend' I Re&ati6e'. • • Mo't of the (eo(&e are a1are of !IC (&an'. Mo't of the Urban !IC (eo(&e 1ere a1are of "TM'$ SMS$ and Internet'. Rura& !IC (eo(&e' (remium' through (ayab&e agent' on&y. • Ma/ority of the (eo(&e donAt a1are of I:RS EInteracti6e :oice Re'(on'i6e Ser6iceF Center' in !IC. • • • Ma/ority of the (eo(&e donAt 2no1 the &oan faci&ity of !IC. !arge no. of cu'tomer' (refer year&y mode of (ayment. Mo't of the (eo(&e donAt 2no1 the 'ocia& 'cheme' &i2e "am "dmi %heema 5o/an$ 9ana'ree %heema 5o/an and 5.S.R ."bhayaha'tam in !IC.

SUGGESTIONS

•

In'urance 'ector i' becoming more and more dynamic the'e day'. It i' 'ugge'ted that more ty(e' of &ife in'urance (&an' 'hou&d be &aunched to 'ync 1ith the changing cu'tomer need'

•

!IC 'hou&d ta2e the mea'ure' of a1arene'' through ad6erti'ement' and ne1' (a(er' etc.$

•

!IC Com(any mu't ha6e to gi6e the more im(ortance to the In'urance (&an' 1hich are in year&y mode of (ayment.

• • • • •

!IC Com(any ha' to bring a1arene'' in the (eo(&e regarding In'urance. !IC Com(any ha' mu't introduce more !ong term (&an'. To a1are create rura& area' in "TM'$ SMS$ Internet'. To a1arene'' create (eo(&e in 'ocia& 'er6ice 'cheme'. To the c&aim' 'ett&ed in 'hort&y.

CONCLUSION

The com(any can focu' on mar2eting on cu'tomer re&ation'hi( acti6itie' to bring in more cu'tomer'. It 'hou&d 2ee( the con'i'tency and tran'(arency in it' management and it may continue to gi6e the be't re'u&t 2ee(ing in mind the cu'tomer' ob/ecti6e in ma2ing their in6e'tment. Mo't of the cu'tomer' are 'ati'fied 1ith the return obtained through &ife in'urance. !IC offer' f&e8ibi&ity and choice to go 1ith e6ery 'tage of &ife. !IC Com(any ha' attained good a1arene'' through media ad6erti'ement'.

9UESTIONNAIRE

A L3e2%$o1e( o1 %:e 532%o>e( (e7'%$o12:$6 >'1'ge>e1% (CRM) 6('5%$5e2 $1 LIC K$%: (e/e(e15e %o ELURU 5$%&

" HoK #o &o3 F1oK %:e 1'>e o/ LIC; . aF Through ne1'(a(er bF Through Re&ati6e' cF Through friend' dF Through ad6erti'ement' on the 1a&&'

2" Do &o3 F1oK 'Do3% %:e 67'1e2 o/ LIC; "F 5e' bF No

+"'(e &o3 'K'(e o/ 6'&>e1% o/ 6(e>$3> %:(o3g: o%:e( 5:'11e72 7$Fe2 ATM2)SMS)I1%e(1e%2 ; aF 5e' bF No

4" 4:$5: >e%:o# o/ 6'&>e1% #o &o3 6(e/e(; aF Ca'h

bF Credit card cF Che3ue

5" 4:'% %&6e o/ >o#e o/ 6'&>e1% #o &o3 6(e/e(; aF Month&y bF Ruarter&y cF Ha&f-year&y dF 5ear&y

C" A(e &o3 'K'(e o/ I8RS 5e1%e(2 /o( $1/o(>'%$o1 'Do3% '77 %&6e o/ 67'12 $1 LIC; aF 5e' bF No

," D$# &o3 1o%$5e '1& (e@e5%$o1 o/ 57'$> /(o> LIC; aF 5e' bF No

8" D$# &o3 1o%$5e# F1oK 'Do3% 7o'1 g('1%$1g /'5$7$%$e2 /(o> LIC; aF 5e' bF No

B" D$# &o3 'K'(e :o32$1g /$1'15e $1 LIC;

aF 5e' bF No

0" D$# &o3 'K'(e 'Do3% 2o5$'7 25:e>e2 7$Fe A'> A#>$ !:ee>' Yo@'1) .'1'2(ee aF 5e' bF No !:ee>' .o'1') Y"S"R" AD:'&':'2%'>;

"&o3 '(e ' 6o(%'7 6o7$5& :o7#e( K:'% o6$1$o1 $1 %:e LIC ; aF)ood bF "6erage 2" D$# &o3 'K'(e o/ LIC $2 >'$1%'$1$1g 532%o>e( g($eG'15e2 >'5:$1e(& e'5: :$e('(5:& 7eGe7; aF 5e' bF No

!I!LIOGRAPHY

.

AD:$2:eF Ag(K'7 0In'urance #e'tribution@ Eng&i'h E*++*F .ST Edition$ICF"I Uni6er'ity 4re''$Hyderabad.4age'-.C.

*

K"See%:'6'%:$)GRK M3(%:& 0)rou( "nd Hea&th In'urance@ Eng&i'h E*++*F .ST Edition$ICF"I Uni6er'ity 4re''$Hyderabad.4age'-.C*

+" P($15$67e2 o/ M'(Fe%$1g. 7 4hi&i( ot&er I )ary "rm'trong7 .+th Edition Ne1 #e&hi. 4rentice Ha&& of India *++B.

4eD S$%e2: 1. www.licof india.com 2" KKK"$123('15e"$1#$'"5o>
3. KKK"$(#'$1#$'"5o>

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