Lic 1
Lic 1
Lic 1
Chapter 6
MAJOR FINDINGS, SUGGESTIONS AND CONCLUSIONS
ANNEXURE
QUESTIONNAIRE
BIBLIOGRAPHY
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Chapter-1
INTRODUCTION
Introduction
Objectives of the study
Methodology
Limitations of study
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Chapter 1
INTRODUCTION
An individual’s is inherent to differ each individuals needs and requirements
are different from that of the others. LIC’s insurance plans are policies that talk
to you individually and give you the most suitable options that can fit your
requirement.
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OBJECTIVES OF THE STUDY
To assess the customer’s perception towards LIC products.
To know loyalty towards the service provides
To analyze the effectiveness of the advertisement and promotional strategy
over the customer.
To make a brief note about the LIC
This project provides an intensive study about policy schemes of LIC.
To conduct a survey to know about the importance of different policies.
To asses the satisfaction/ dissatisfaction over products offer the LIC
METHODOLOGY
Source of Data Collection
Primary Data
Primary data are collected through interviewing the branch manager,
administrative officer and staff of Shikaripur branch. I have also contacted
some agents to know the other relevant information of the project.
Secondary Data
Secondary data is collected through the internet medium and from the
company’s Broachers, articles and subject oriented books.
Sampling Design
Sampling element sampling units are customers of life insurance Corporation
of India. Sampling size the size of the sample is 50 respondents
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LIMITATIONS OF STUDY
Some of the major limitations of study are mentioned below
The survey work was conducted in Shikaripura and near by areas only. It
can not cover preference of other region.
The sample size taken for the survey was 50 because of the limited time
period there is change of error in data analysis.
There is a chance of mistake in the answer because of the time limited
knowledge of respondents.
There is also possibility of giving wrong answer by respondents because of
mood of customer and due to the familiarity they can not express their view
correctly.
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Chapter 2
COMPANY PROFILE
Introduction
History
Growth and development
Objective
Importance
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Chapter 2
COMPANY PROFILE
INTRODUCTION OF INSURANCE
Insurance Industry has always been a growth oriented industry globally. ON
the Indian scene too, the insurance industry has always recorded noticeable
growth vis-à-vis other Indian industries, The Triton general Insurance Co- Ltd
was the first general insurance company to be established in India in 1850.
Which was a wholly British- owned company? The first general insurance
company to be setup by an Indian was Indian Mercantile Insurance co- Ltd.
Which was established in 1907? There emerged many a player on the Indian
scene there after, The general insurance business was nationalized after the
promulgation of general Insurance Business (Nationalization) Act, 1972. The
post nationalization general insurance business was undertaken by the general
Insurance corporation of India (GIC) and its 4 subsidiaries:-
1. Oriental Insurance company Limited;
2. New India Assurance company Limited;
3. National Insurance Company Limited;
4. United India Insurance company Limited;
The life Insurance corporation (LIC) was established on 01-09-1956 and had
been the sole corporation to write the life Insurance business in India.
The Indian insurance industry saw a new sun when the insurance regulatory
and Development authority (IRDA) invited the applications for registration as
insurance in August, 2000. With the liberalization and opening up of the sector
ATNCC, SHIVAMOGGA 7
to private players, the industry has presented promising prospects for the
coming future. The transition has also resulted into introduction of ample
opportunities for the professionals including chartered Accountants.
What is Insurance?
The business of insurance is related to the protection of the economic values of
assets. Every asset has a value. The asset would have been created through the
efforts of the owner. The asset is valuable to the owner, because he expects to
get some benefits from it. It is a benefit because it meets some of his needs.
The benefits may be an income or in some other firm. In the case of a factory
or a cow, the product generated by it is sold and income is generated. In the
case of a motor car, it provides comfort and convenience in transportation.
There is no direct income. Both are assets and provide benefits.
Life Insurance in its modern form came to India from England in the year
1818. Oriental Life Insurance Company started by Europeans in Calcutta was
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the first life insurance company on Indian Soil. All the insurance companies
established during that period were brought up with the purpose of looking
after the needs of European community and Indian natives were not being
insured by these companies. However, later with the efforts of eminent people
like Babu Muttylal Seal, the foreign life insurance companies started insuring
Indian lives. But Indian lives were being treated as sub-standard lives and
heavy extra premiums were being charged on them. Bombay Mutual Life
Assurance Society heralded the birth of first Indian life insurance company in
the year 1870, and covered Indian lives at normal rates. Starting as Indian
enterprise with highly patriotic motives, insurance companies came into
existence to carry the message of insurance and social security through
insurance to various sectors of society. Bharat Insurance Company (1896) was
also one of such companies inspired by nationalism. The Swadeshi movement
of 1905-1907 gave rise to more insurance companies. The United India in
Madras, National Indian and National Insurance in Calcutta and the Co-
operative Assurance at Lahore were established in 1906. In 1907, Hindustan
Co-operative Insurance Company took its birth in one of the rooms of the
Jorasanko, house of the great poet Rabindranath Tagore, in Calcutta. The
Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life)
were some of the companies established during the same period. Prior to 1912
India had no legislation to regulate insurance business. In the year 1912, the
Life Insurance Companies Act, and the Provident Fund Act were passed. The
Life Insurance Companies Act, 1912 made it necessary that the premium rate
tables and periodical valuations of companies should be certified by an actuary.
The first two decades of the twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force asRs.22.44 crore, it
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rose to 176 companies with total business-in-force as Rs.298 crore in 1938.
During the mushrooming of insurance companies many financially unsound
concerns were also floated which failed miserably. The Insurance Act 1938
was the first legislation governing not only life insurance but also non-life
insurance to provide strict state control over insurance business. The demand
for nationalization of life insurance industry was made repeatedly in the past
but it gathered momentum in 1944 when a bill to amend the Life Insurance Act
1938 was introduced in the Legislative Assembly. However, it was much later
on the 19th of January, 1956, that life insurance in India was nationalized.
About 154 Indian insurance companies, 16 non-Indian companies and 75
provident were operating in India at the time of nationalization. Nationalization
was accomplished in two stages; initially the management of the companies
was taken over by means of an Ordinance, and later, the ownership too by
means of a comprehensive bill.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart
from its corporate office in the year 1956. Since life insurance contracts are
long term contracts and during the currency of the policy it requires a variety of
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services need was felt in the later years to expand the operations and place a
branch office at each district headquarter. Re-organization of LIC took place
and large numbers of new branch offices were opened. As a result of re-
organization servicing functions were transferred to the branches, and branches
were made accounting units. It worked wonders with the performance of the
corporation. It may be seen that from about 200.00 crores of New Business in
1957 the corporation crossed 1000.00 crores only in the year 1969-70, and it
took another 10 years for LIC to cross 2000.00 crore mark of new business.
But with re-organization happening in the early eighties, by 1985-86 LIC had
already crossed 7000.00 crore Sum Assured on new policies.
Today LIC functions with 2048 fully computerized branch offices, 109
divisional offices, 8 zonal offices, 992 satellite offices and the Corporate office.
LIC’s Wide Area Network covers 109 divisional offices and connects all the
branches through a Metro Area Network. LIC has tied up with some Banks and
Service providers to offer on-line premium collection facility in selected cities.
LIC’s ECS and ATM premium payment facility is an addition to customer
convenience. Apart from on-line Kiosks and IVRS, Info Centers have been
commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad,
Kolkata, New Delhi, Pune and many other cities. With a vision of providing
easy access to its policyholders, LIC has launched its SATELLITE SAMPARK
offices. The satellite offices are smaller, leaner and closer to the customer. The
digitalized records of the satellite offices will facilitate anywhere servicing and
many other conveniences in the future.
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LIC continues to be the dominant life insurer even in the liberalized scenario of
Indian insurance and is moving fast on a new growth trajectory surpassing its
own past records. LIC has issued over one crore policies during the current
year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th
Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding
period of the previous year.
From then to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The same
motives which inspired our forefathers to bring insurance into existence in this
country inspire us at LIC to take this message of protection to light the lamps
of security in as many homes as possible and to help the people in providing
security to their families.
Nationalization
In 1955, parliamentarian Amol Barate raised the matter of insurance fraud by
owners of private insurance agencies. In the ensuing investigations, one of
India's wealthiest businessmen, Sachin Devkekar, owner of the Times of India
newspaper, was sent to prison for two years.
Eventually, the Parliament of India passed the Life Insurance of India Act on
June 19, 1956 creating the Life Insurance Corporation of India, which started
operating in September of that year. It consolidated the life insurance business
of 245 private life insurers and other entities offering life insurance services,
this consisted of 154 life insurance companies, 16 foreign companies and 75
provident companies. The nationalization of the life insurance business in India
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was a result of the Industrial Policy Resolution of 1956, which had created a
policy framework for extending state control over at least seventeen sectors of
the economy, including life insurance.
OBJECTIVES
Spread Life Insurance widely and in particular to the rural areas and to the
socially and economically backward classes with a view to reaching all
insurable persons in the country and providing them adequate financial
cover against death at a reasonable cost.
Maximize mobilization of people's savings by making insurance-linked
savings adequately attractive.
Bear in mind, in the investment of funds, the primary obligation to its
policyholders, whose money it holds in trust, without losing sight of the
interest of the community as a whole; the funds to be deployed to the best
advantage of the investors as well as the community as a whole, keeping in
view national priorities and obligations of attractive return.
Conduct business with utmost economy and with the full realization that the
moneys belong to the policyholders.
Act as trustees of the insured public in their individual and collective
capacities.
Meet the various life insurance needs of the community that would arise in
the changing social and economic environment.
Involve all people working in the Corporation to the best of their capability
in furthering the interests of the insured public by providing efficient
service with courtesy.
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Promote amongst all agents and employees of the Corporation a sense of
participation, pride and job satisfaction through discharge of their duties
with dedication towards achievement of Corporate Objective.
IMPORTANCE
Life Insurance is considered to be an important part of an individual’s, not
necessarily to accumulate wealth, but to feel financially secure. Other then this
when you opt for a life insurance policy you enjoy other benefits also, like tax-
deduction options, and in some cases long term capital gains. What is
important when you opt for a policy is the term and plan related to that
particular policy. Always remember Life Insurance is primarily made keeping
your family and those who are dependent on you in mind.
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Life Insurance Corporation of India Eliminates Dependency
At the death of husband or father the destruction of family need no elaboration.
The family would suffer a lot. It brings reduced standard of living and the
suffering may go to any extent of begging from relatives, neighbors or friends.
The economic independence of the family is reduced or some times last totally,
what can be more condition than this that the wife and children are looking
others more benevolent than the husband and father. In absence of protection
against such dependency the life insurance is here to assist them and provides
adequate amount at the time of sufferings.
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LIC Provides profitable investment
Individual unwilling or unable to handle their own funds have been pleased to
find an outlet for their investment in LIC Endowment policies, Multipurpose
policies, deferred annuities are certain better form of investment. The element
of investment i.e., regular savings capital formation and return of the capital
along with certain additional return are perfectly observed. In LIC an
individual from his own capacity cannot invest regularly with enough of
security and profitability. The LIC fulfills all these requirements with a lower
cost.
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provides old age funds along with the protection of the family by issuing
various policies.
3. Special Need
There are certain special requirements of the family which is fulfilled by the
earning member of the family. If the member becomes disable to earn the
income due to old age or death. Those need may remain unfulfilled and the
family will suffer.
NEED OF EDUCATION
There are certain LIC policies and annuities which are useful for education of
the children irrespective of the death or survival of the father or guardian.
MARRIAGE
The daughter may remain unmarried in case of father’s death or in case of
inadequate provision for meeting the expenses of marriage. The LIC can
provide fund for the marriage if policy is taken for the purpose.
SETTLEMENT OF CHILDREN
After education, settlement of children takes time and in absence of adequate
funds, the children cannot be well placed and all the education goes to waste.
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LIC PROTECTED WEALTH OF THE SOCIETY
The loss of a particular wealth can be protected with LIC of India. LIC
provides loss of human wealth. The human material if it is strong educated and
carefree will generate more income with the advancement of the society, the
wealth of the society attracts more hazardous and so new types of insurance
are also invented to protect them against the po0ssible losses. Each and every
member will have financial security against old age, death, damage, destruction
and disappearance of his wealth including the life wealth. Through prevention
of economic losses, instance protects the society against degradation. Through
stabilization and expansion of business and industry, the economic security is
maximized. The present future and potential human and property resources are
well protected. The children are getting expertise education working classes are
free from botherations and older people are guiding at ease. The happiness and
prosperity are observed every where with the help of LIC.
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Life Insurance contracts
1. A life insurance policy promises that the insurer will pay to the policy
holder a certain sum of money if the person insured dies or any other
specified contingency happens. It is a contract, which in the meaning of the
Indian contract Act, 1872. A contract is an agreement between two or more
parties to do, or not to do, so as to create a legally biding relationship. A
simple contract must have the following essentials.
After and acceptance
Consideration
Capacity to contract
Consumers ‘ad idem’ (genuine meeting of minds)
Legality of object or purpose
Capability of performance
Intention to create legal relationship.
2. Insurance is a contract between the insurer and the policy holder. The policy
holder can be different from the person whose life is insured, as will be seen
later. Insurance is a specialized type of contract. Apart from the usual
essentials of a valid contract, insurance contracts are subject to two
additional principles viz ., principle at utmost good faith and the principle
of insurable interest. These apply to all insurance, both life and non life.
3. Commercial contracts are normally subject to the principles of caveat
emptor i.e. let the buyer beware. It is assumed that each party to the
contract can examine the item or service, which is the subject matter of the
contract. Each party can verify the correctness of the statements of the other
party. There is no need to take the statements on trust proof can be asked
for.
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4. In the caser of insurance contracts, this principle does not apply. Most of
the facts relating to health, habits, personal history, family history etc.,
Which from the basis of the life insurance contract, are known only to the
proposer. The insurer cannot know them, if the proposer does not disclose
them. The underwriter can ask for a medical report. Yet there may be
examination done.
5. A summary the doctrine of utmost good faith was given in the case of
Rozanes Vs Bowen in 1928 as follows “ As the under writer knows nothing
and the man who comes to him to ask for insurance knows everything, it is
the duty of the assured to make a full disclosure to the underwriter without
being asked, of all material circumstances. This is expressed by saying that
it is a contract of utmost good faith.
6. Every circumstance that would have a bearing on the judgment of a prudent
insurer in fixing the premium or determining the acceptability of the
proposal of insurance is a material fact. Therefore, facts regarded smoking
drinking, medical history, surgeries, earlier insurance, etc., are material
facts and must be disclosed. The proposer can not defend non – disclosure
by contending that he did not think that the fact was material.
7. There are certain facts which, through material, need not be disclosed. They
are
Facts of common knowledge, which every one is supposed to know.
Facts of law.
Facts which a survey would have revealed.
Facts which could be reasonably discovered by reference to previous
policies and records available with the insurer.
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8. The duty of disclosure in life insurance operates till the risk commences,
circumstances, which may have arisen after the risk has commenced do not
affect the validity of the contract, unless the conditions of the contract,
make relevant stipulations to that effect.
9. The breach of the principle of utmost good faith may arise due to
misrepresentation or non- disclosure. Misrepresentation or non- disclosure
should be such that what is stated in the proposal is
Substantially false and known to the proposer as false.
Not known to the insurer
Concerned with facts which are material to the acceptance or assessment of
the risk or material to the benefits south by the proposer.
Calculated to induce the other party to enter into the contract on its own
terms.
10.In a proposal for life insurance, the proposer makes a declaration to the
effect that all the statements in the proposal form are true in every respect
and, if any untrue statement be contained there in, the insurer would be
entitled to the contracts as null and void and forfeits all the moneys paid as
premium. The effect of this declaration is to turn the representation in the
proposal into warranties, which must be compiled in too.
Insurable Interest
All risks are not insurable otherwise; an insurance contract would be no
different from a wagering contract or betting. It was explained earlier that
speculative risks are not insurable. A wagering contract is speculative in nature
an is illegal in terms of section 30 of the Indian contract Act. A subject matter
of a valid contract has to be legal.
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The insurance Act, 1938 does not define insurable interest, court judgments
have established the circumstances in which insurable interest is deemed to
exist. It has been held that a person has unlimited insurable interest in his
own life. Other classifications relevant for life insurance are.
A husband has insurable interest in the life of his wife and vise- versa.
Parents have insurable interests in the lives of their children.
An employer has insurable interest in his employee to the extent of the
value of his service.
An employee has insurable interest in his life of his employer to the extent
of his remuneration for the period of his notice.
A creditor has an insurable interest in the life of the debtor, to the extent of
the debt.
Partners have insurable interest in the lives of each other.
A surety has an insurable interest in the life of the principle debtor and also
in the life of his co- surety to the extent of the debt.
A company has an insurable interest in the life of a key valuable employee.
11. Parents can insure each others lives, because they stand to lose in the event
of death of any of them. A creditor may lose financially if a debtor dies
before repaying a loan his interest would be limited to the outstanding loan
with outstanding interest. If members of families are in business together or
there is some other financial relationship, insurable interest arises as a result
of such financial involvement. The insurable interest arises, not because of
the family ties, but because of the business ties.
ATNCC, SHIVAMOGGA 22
12. The legal position about children’s assurance is not quite clear. It is
presumed that parents have insurable interest in the life of a child as a child.
I.e. so long as he is a child. Therefore, most of the children’s policies are
incorporating a vesting clause, whereby the policy vests in the child on
attainment of majority.
In the case of life insurance policies, insurable interest must exist at the
inception of the policy. There is not requirement for insurable interest at the
time of a claim under the life insurance policy. In the case of marine policies
insurable interest must exist at the time of the claim. This implies that there
need not be insurable interest at the inception of the policy. When an importer
asks for insurance cover on goods which he has ordered, he is still not the
owner and therefore, has insurable interest. In other insurances, insurable
interest must exist at the time of inception as well as at the time of claim.
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Chapter 3
BRANCH PROFILE
About Branch
Historical Back Ground
Mission
Vision
Detail of Branch
Organization Structure
Branch Consist Several Officers
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Chapter 3
BRANCH PROFILE
ABOUT BRANCH
Branch office was formed on 30-09-1992 with Shikaripura as it head quarters
having its jurisdiction over Shikaripura Taluk.
Since it formation the branch office has been growing steadily in New Business
front from year to year.
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Basavanna, the 12th century social reformer, Noted Kannada literate and poet
Sri G.S. Shivarudrappa took his birth in this Taluk.
MISSION
The mission of the branch is to explore and enhance the quality of life of
people through financial security by providing products and services of aspired
attributes with competitive returns is by rendering resource for economic
development.
VISION
The LIC vision is to become trans nationally competitive financial
conglomerate of significance of societies and prides of India.
DETAIL OF BRANCH
Branch Name : Jeevan Jyothi Branch, Shikaripura
Date of opening of the Branch : 30 – 09 – 1992
Branch Area : Shikaripura Taluk (Rural and Urban)
Total area of the Branch : 909kms
Number of villages : 178
Number of Hoblis : 2
Number of Blocks : 5
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ORGANIZATION STRUCTURE
Administrative Officer
Development Officer
Clerical staff
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Class IV
Sepoy Sweeper Total
2 1 3
ATNCC, SHIVAMOGGA 28
Total premium Income for the Financial Year (2013 -14) in laks
F.P. I 839.36
F.Y.R.P 13.40
R.P 2927.31
Total Premium Income 3780.07
Total payments
Management expenses 856.40 778.13 717.59
Policy payments 379.48 313.25 315.62
ATNCC, SHIVAMOGGA 29
O/S Policy deposit 85941.80 33300.00 20750
Surplus Transferred
During the year 533.80
(LACS)
ATNCC, SHIVAMOGGA 30
CHAPTER 4
POLICIES OF LIFE INSURANCE CORPORATION OF
INDIA
ATNCC, SHIVAMOGGA 31
Chapter 4
POLICIES OF LIFE INSURANCE CORPORATION OF INDIA
c) JEEVAN ANAND : A unique with profit whole money- back plan which
provides for annual survival benefit at a rate of 51/2 % of the sum assured
after the chosen accumulation period.
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d) It is a term assurance plan with an option to convert the policy to whole life
Limited payment assurance or Endowment assurance at any time during the
specified term, without undergoing fresh medical examination.
e) LIC’s ANMOL JEEVAN -1: A term assurance plant where one can
choose any term from 5 to 25 years. It provides for payment of the sum
assured on death of the life assured during the term of the policy.
f) LIC’s AMULYA JEEVAN -1 A term assurance plan with a minimum
sum assured of Rs. 25 Lakhs.
4. PENSION PLANS
a) LIC’S JEEVAN AKSHAY : An immediate annuity plan with a number of
options
b) NEW JEEVAN SURAKSHA & NEW JEEVAN DHARA :
c) Deferred annuity plans. The annuitant has five options of annuity payments
to choose from.
d) LIC’s JEEVAN NIDHI: A with profits deferred pension plan which
provides death cover during the deferent peril
ATNCC, SHIVAMOGGA 33
5. UNIT LINKED PLANS
a) LIC’s PROFIT PLUS : Unit linked endowment plant with four fund
types, 5 to 20 year policy term, Single premium and 3 to 5 year premium
paying term.
b) LIC’s MARKET PLUS-1 : Unit linked pension plan with option of with or
without risk cover and commutation of 1/3rd pension. Pension can start at
minimum age of 40 years, critical illness as rider is also available.
c) LIC’s CHILD FORTUNE PLUS: unit linked endowment plan with
regular premium paying term which offers investment cum insurance during
the term of the policy.
d) LIC’s CHILD FUR5TUNE PLUS: Unit link plan which offers a solution
to meet the child’s educational and other needs.
e) LIC’s JEEVAN SATHI PLUS: Unit linked joint life plan where in a
couple can take insurance cover on their lives under a single policy
ATNCC, SHIVAMOGGA 34
years and domiciliary treatments benefit / out patient department expenses
reimbursement till the unit fund exhausts. Also premium up to a limit are
eligible for income tax relief v/s 80D
10.ORTHER PLANS
a) MONEY BACK PLANS: Besides providing life cover during the term of
the policy survival benefit linked to the sum assured during the term of the
policy will be available.
b) JEEVAN MITRA: An endowment assurance plan providing for twice or
thrice the sum assured payable on death of the life assured during the policy
term
c) JEEVAN SATHI: A with profit joint life endowment assurance plan for
both husband and wife.
d) FIXED TERM ENDOWMENT /EDUCATIONAL ANNUITY: An ideal
plan for making provisions for education marriage of children claim/
annuity is payable after expiry of policy term.
e) NEW JANA RAKSHA: Ideal for all, especially for people with irregular
income.
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f) JEEVAN SURABHI: A money back plan where premiums are payable
for a limited period with periodical increase after every five years.
g) LIC’S JEEVAN SHREE: A limited payment endowment assurance plan
with guaranteed additions for the first five years and bonus additions there
after.
h) LIC’S JEEVAN SARAL: A plan the provides the life assured insurance
cover with the flexibility of partial withdrawal.
i) LIC’S JEEVAN PRAMUKH PLAN: A niche market with profits
endowment assurance plan having limited premium paying term with
guaranteed additions for the first five years and bonus additions there after.
j) LIC’s BIMA NIVESH: A single premium plan with compounding
guaranteed additions @ Rs 50 per thousand per annum, payable on death or
maturity.
k) LIC’s BIMA BACHAT: A single premium money –back policy with
policy term of 9,12 and 15 years.
l) LIC’s NEW BIMA GOLD : A regular premium money back plan witch
return of total premiums in installments ate pre specified intervals with
loyalty additions, if any, at maturity and extended free risk cover.
m) LIC’s JEEVAN AMRIT : Plan where premium payment is limited to 5
years and premium payable during first year is higher than the premiums
payable in subsequent years.
n) LIC’s JEEVAN BHARATHI : Money back plan exclusively for ladies
having optional riders such as Accident benefit rider, critical illness benefit
rider and congenital disability benefit rider.
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LIC offers life insurance protection under group policies to various groups
such as employer employees. Professionals, co- operatives, weaker sections of
society etc. It also provides insurance coverage to people at subsidized rates
under social security group schemes. Besides, providing insurance coverage, to
employees the corporation also offers group schemes. Which provides funding
of gratuity, pension liabilities and leave Encashment liabilities of the
employers.
ATNCC, SHIVAMOGGA 37
GROUP GRATUITY SECEMES
Gratuity is a statutory liability of the employers. This is an incremental liability
which accrues to an employee for every year of service put in by him. In the
group gratuity scheme granted by LIC, in the event of premature death of the
member, the dependent can get an amount which will be equal to the gratuity
payable on the normal retirement of the member, had he survived up to the date
of superannuation. A part from the above the valuation of the liability,
guidance in drafting trust deed and rules of the scheme, security for the fund,
attractive return, lower premium for the insurance optional critical illness rider
benefit against major diseases, periodical information about the status of fund,
simple administrative and claim settlement procedures, tax concessions etc.
ATNCC, SHIVAMOGGA 38
concession, etc.LIC offers a wide range of benefit options to cater to the needs
of the different beneficiaries.
ATNCC, SHIVAMOGGA 39
valuation of the liability attractive returns and best service combined with
insurance cover which may either be uniform or graded.
ATNCC, SHIVAMOGGA 40
GROUP INSURANCE SCHEME FOR DEPOSIT HOLDERS OF BANKS
This scheme covers account / deposits holders of a bank. The cover allowed is
Rs. 1,00, 000/- per member with / without double accident benefit.
ATNCC, SHIVAMOGGA 41
company has granted loaned to almost one million customers since inception.
The loan book of the company as on 31- 3-2009 stands at Rs. 27679 cr. and its
network is Rs 2234 cr. It is consistently dividend paying company since 1990,
the as one for 2008- 09 being 130%.
ATNCC, SHIVAMOGGA 42
LIC MUTUAL FUND
LIC Mutual Fund asset management company Ltd. Is the investment manager
to LIC Mutual Fund . LIC Mutual Fund has launched 100 schemes since
inception. Out of 36 ongoing schemes, continuous sale and repurchase is
available under 20 open ended schemes. The AMC was able to mobilize
substantial funds for the financial year and the average assets under
management for March, 2009 was Rs 230932 cr which shows growth of 64%
over the average assets under management for March, 2008.
During the year LICMF opened five Area office at Guwahati, Managalore,
Mumbai-II and Nagpur taking the total number of area offices to 22 besides
increasing the number of business centers to 65 for further penetration in the
untapped semi urban and retail market.
As a 31-3-2009 LICMF stood at no 7 out of 356 mutual funds in the industry
on the basis of average assets under management.
ATNCC, SHIVAMOGGA 43
functional company and transacts its operation independently in its corporate
office, employing with all the regulatory requirements.
During the year 2000-09 LIC pension Fund has shown remarkable overall
performance and was able to earn excellent return on its investment.
Consequently allocation of pension funds of central Government employees
increased from 5% in 2008-09 29% in 2009-10.
Other Features :
a) A blend of both wholes life and endowment plan.
b) Accident benefit is available during premium paying term and there after
upto age 70.
c) Even after the premium paying term is over the risk cover continues till
death of policy holder.
d) Plan is allowed ev
e) en to person engaged in hazardous occupation attracting occupational extra
subject to certain conditions.
ATNCC, SHIVAMOGGA 44
Maturity Benefit :
Sum assured (SA) plus bonus is payable with final addition bonus. If any, at
the end of the premium paying term.
Death Benefit
If policy holder dies before completion of premium paying term SA Plus
accumulated bonus will be paid
If policy holder dies after premium paying term an additional amount equal to
sum assured is payable and no bonus will be paid.
ACCIDENT BENEFIT
Maximum accident benefit cover available under the plan is Rs 5 lakh.
However this limit is exclusive of accident benefit available under other plans.
RESTRICTIONS
Minimum age at entry 18 years
Maximum age of entry 65 years
Premium paying term 5-57 years
Minimum sum assured 1.00,000
Mode All
ATNCC, SHIVAMOGGA 45
Rs. 5 lakh to 10 lakh Rs 1.50
Rs, 10 lakh and above Rs. 1.75
KOMAL JEEVAN
A definitive provision to realize the dream for your child with guaranteed
returns and installments when required most.
a. General policy condition
b. Additional benefit
Paid up value
Claim concessions
Surrender value
Revival
Nomination / Assignment
Premium waiver benefit
]Term rider benefit.
c. Special Benefit
ATNCC, SHIVAMOGGA 46
Life cover for both child and father (if adopted)
Guaranteed additions @ 75/- per thousand S.A
PWB optional
Term rider optional
Loyalty additions
ANMOL JEEVAN
A pure term assurance that covers mo0re risk and less premium. All males and
females with earned income and females with unearned income and paying tax
are eligible for this plan.
Policy also available as gift
Plan is allowed to physical handicapped person as per the existing rules
This plan is allowed to persons engaged in hazardous occupation by
charging appropriate occupational extra or with clause 86.
Grace period of 15 days will be allowed for payment of yearly or half
yearly premiums.
ATNCC, SHIVAMOGGA 47
Mode Yearly, half yearly, quarterly, SSS and
monthly
It is nothing but four in one policy they are
Auto cover facility available
Money back every 4 years
Low premium high extended insurance cover after maturity.
Plan Parameter
Age at entry : Min 18 yrs, Max 45 years
Maturity Age : 65years
Sum assured : Min 50,000 , Max No limit
S.A in multiples : 5000
Term : Min 18 yrs, Max 25 yrs
Mode of payment : YLY/ HLY/ QLY/SSS/MLY
ATNCC, SHIVAMOGGA 48
Accident benefit : Rs 1 extra per
(Max -50 lakh inclusive 1000 S.A All plan)
Policy Loan : Yes
Housing Loan :Yes
Revival : Yes
Surrender of policy :Yes
Term Rider : N.A
CIR : N.A
Benefit
Survival benefit : 25% S.A during last 3 years . Before maturity. Maturity
benefit : on Maturity balance 25% of S.A + Bonus on full S.A + FAB, if any.
Death benefit: S.A is immediately paid to the nominee future premium are
rwaived. Moreover, during last 4 years of term 25% of S.A is payable. In
addition bonus for full term + FAB , if any will be paid.
ATNCC, SHIVAMOGGA 49
are payable regularly during the policy term with yearly, half yearly or
quarterly. Premium may be paid either for 6 years or up to 5 years before the
policy term. No premium are payable during the extended term (i.e. 7 years
after the expiry date)
Risk commencement: Risk under this plan will commencement either after 2
years from the date of commencement of the policy or from the policy
anniversary coinciding with or immediately following the completion of 5
years of age life assured, which ever is later, (if the life assured age at entry is
less then or equal to 10 years) . Incase the age at entry is more than 10 years
but less then 12 years, the risk shall commence from the policy anniversary
coinciding with or next following 12th birthday of the life assured, in the life
assured age 12 years a more, the risk will commence immediately.
PLAN PARAMETERS
Age at entry : Min 0 yrs,(LBD) Max 12 years (LBD)
Maturity Age : Min 23 years (LBD) Max 27 years (LBD)
Sum assured : Min 1 lack , Max 1 crore
S.A in multiples : 5000
PPT : 6 yrs, and policy term - 5 years
Mode of payment : YLY/ HLY/ QLY
Policy Loan : No
Housing Loan :No
Assignment : No by the proposer, but assignable after the policy
has vested in the life assured.
Revival : Yes
ATNCC, SHIVAMOGGA 50
AGE PROOF
Aged 5 years and above- School certificate
Aged less than 5 years _ certificate from Municipal / Local village panchayat
records
Auto cover: After payment of the full years premium if any subsequent
premium be not duly paid, full death cover shall continue for a two years from
the due date of the first unpaid premium (FUP) PWB, if any shall remain in
force during the auto cover period.
BENEFIT
Death benefit: On death after the date of risk commencement.
1. If death occurs within the period from the date of risk commencement to 5
years before expiry date of policy term : Sum assured + vested simple
reversionary bonus and F.A .B if any if payable I
2. If death occurs with in 5 years before the expiry the date of policy term:
Sum assured + F.A.B if any is payable.
3. On death during the extended term: Sum assured is payable
4. If death occurs before the date of risk commencement: all the premium paid
(excluding premium for extra and PWB if any ) + interest @ 3% P.a
compounding year shall be payable.
5. If death occurs during the auto cover period: death benefits after deducting
unpaid premium with interest as also the premium falling due before the
next bonus if any.
ATNCC, SHIVAMOGGA 51
Survival Benefit: On life survival till the end of the specified
Durations an amount is payable as survival benefit as under:
5 years before the expiry date of policy term : 25% of the SA
4 years before the expiry date of policy term : 10% of the SA
3 years before the expiry date of policy term : 10% of the SA
2years before the expiry date of policy term : 10% of the SA
1 years before the expiry date of policy term : 10% of the SA
On the expiry date of policy term: 50% of the S.A + vested simple
reversionary bonus + final additional bonus (FAB, if any)
ATNCC, SHIVAMOGGA 52
Chapter 5
DATA ANALYSIS AND INTERPRETATION
ATNCC, SHIVAMOGGA 53
Chapter 5
DATA ANALYSIS AND INTERPRETATION
160
140
120
100
80
60 Percentage (%)
40 No. of respondents
20
0
Interpretation
The above diagram shows the distribution of 50 respondents acquired the
awareness about the policy in that 20 respondn3ets, 8 respondents through
advertisement and remaining 10 respondents from other sources
ATNCC, SHIVAMOGGA 54
2. The following Table shows the respondents policy they have
160
140
120
100
80
60 Percentage (%)
40
No. of respondents
20
0
Interpretation
The above chart shows choice to policies 17 respondents have endowment
plan, 9 respondents have term insurance plan. 17 respondents have children
plan & remaining 7 are have pension plan.
ATNCC, SHIVAMOGGA 55
3. Table showing the premium payment through different made
160
140
120
100
80 Percentage (%)
No. of Respondents
60
40
20
0
Agents Online ECS Others Total
Interpretation
The above chart shows that mode of premium payment in that 30 respondents
are select through agents, 8 respondents are select online payment, &
remaining 12 respondents select other sources as their convenient.
ATNCC, SHIVAMOGGA 56
4. Table showing made of premium preferred by respondents
No. of respondents
Monthly
Half yearly
Quarterly
Yearly
Total
Interpretation
The above diagram represents 20 respondents preferred monthly payment. 15
respondents prefer half yearly payment,10 respondents prefers yearly payment
and remaining 5 respondents prefer quarterly payment.
ATNCC, SHIVAMOGGA 57
5. Table Showing the respondents motive of taking LIC policy
120
100
80
60 No. of Respondents
Percentage (%)
40
20
0
0 2 4 6
Interpretation
The above diagram shows 24 respondents taking LIC policy for risk coverage,
21 respondents for savings and remaining 5 respondents for tax benefit
ATNCC, SHIVAMOGGA 58
6. Table shows the service provide by LIC
100
80
60
No. of .Respondents
40
Percentage (%)
20
0 Percentage (%)
No. of .Respondents
Yes No Total
Interpretation
Above diagram represents service provided by LIC agents in that 96% positive
and 4% negative response from the respondents.
ATNCC, SHIVAMOGGA 59
7. Table shows the guidance provides by the LIC agents
No. of Respondent
Yes
No
Total
Interpretation
The above diagram shows the guidance provided by LIC agents in that 9%
positive and 8% negative response from the respondents.
ATNCC, SHIVAMOGGA 60
8. Table shows the premium charged by LIC
100
90
80
70
60
50 No. of respondents
40 Percentage (%)
30
20
10
0
High Very Normal Low Total
high
Interpretation
The above table shows that 32 respondents response that LIC premium charges
at normal rate, 14 respondents response that LIC premium charges at very high
price, remaining 4 respondents response that LIC charged at high rate of
premium
ATNCC, SHIVAMOGGA 61
9. Table shows the LIC policies provide safety and Security of life
No. of respondents
Yes
No
Total
Interpretation
Above diagram represents LIC policy provide safety and security of life in that
96% positive and 4% negative response from the respondents.
ATNCC, SHIVAMOGGA 62
10.The following table shows the respondents opinion regarding to purchase
a policy
160
140
120
100
80 Percentage (%)
No. of Respondents
60
40
20
0
Yes No Total
Interpretation
Above diagram represents LIC policy purchasing about 96% and 4%
respondents are not purchased.
ATNCC, SHIVAMOGGA 63
Chapter 6
MAJOR FINDINGS, SUGGESTIONS AND
CONCLUSIONS
ATNCC, SHIVAMOGGA 64
Chapter 6
MAJOR FINDINGS, SUGGESTIONS and CONCLUSIONS
FINDINGS
Even though there is good services, some people says that there is some
problems relating to service. They are not too satisfied. They are as follows
The service of LIC agents after selling the policies shown their face again.
Bonus provided by LIC is very less. There is delay in transfer of policies
Settlement of claims is not quick.
Loans given by LIC at high rate of interest.
Some respondents stated that advertisement is less to the public who have
the LIC.
The rules regulations and procedures of insurance company are not reaching
the common people. There is lot of formalities involved in purchasing
policy
ATNCC, SHIVAMOGGA 65
SUGGESTIONS
The branch should make further efforts to increase or popularities all its
policies. Besides it needs to check and reserve the declaiming the end in
case of all their policies.
There should be quick settlement.
The branch should popularize its loan schemes among the policy holders.
Loans given by LIC at high rate there should be decrease in interest on loan
provided by LIC
Rules, regulations, policies and procedures of the corporation should be
made known to the common people.
Death claims should be settled still more expeditiously and number of
outstanding death claims at year ends should be reduced of possible nil.
Bonus should be increasing some extent.
There will be cordial or good relationship b/n providing better services to
customers.
They should avoid delay in transfer of policies from one branch to another.
They should be improving service of ILC.
ATNCC, SHIVAMOGGA 66
CONCLUSIONS
After findings we can see about LIC features and the tendency to take the
expedient approach and focus on the far right of the LIC spectrum. Peace time
contingency operations and conduct training as usual, while briefing that the
LIC block has been checked, will lead us to a possible fatal false sense of
security.
Instinctive behavior and ingrained training must be adjusted to fil new
circumstances. STXs must be developed locally or borrowed from units who
have already been through the training.
The probability of becoming involved in a LIC operation is high. The potential
to attract international attention, even with limited forces, is also great. Units
have demonstrated that with a balanced training focus and proper preparation,
many pitfalls outlined above can be avoided.
ATNCC, SHIVAMOGGA 67
ANNEXURE
QUESTIONNAIRE
BIBLIOGRAPHY
ATNCC, SHIVAMOGGA 68
Questionnaire
Sir/ Madam
I am Ranjitha A.R student of ATNCC Studying in Final year BBM of
academic year 2014-15 for the partial fulfillment of my course. I am
conducting the survey for project report on policy schemes of LIC of India”,
A case study on LIC Branch Shikaripura.
There fore please spare your valuable time to fulfill the questionnaire.
This survey surely academic and data thus gathered would be kept condentially
Your faithfully
Ranjitha A.R
1. Name :
2. Address :
3. Age :
a) 18- 25 b) 25- 35
b) c) 35-45 d) 45 and above
4. Martial status :
a) Married b) Unmarried
5. Gender:
a) Male b) Female
6. Occupation :
a) Agriculture b) Business
c) Employed d) Professionals
ATNCC, SHIVAMOGGA 69
e) Others
7. Education:
a) SSLC b) PUC c) Graduate
d) Post Graduate e) Others
8. Monthly Income:
a) Below Rs. 5000 b) Rs. 5000-10000
c) Rs. 10,000-20,000 d) Rs. 20,000,00 and above
ATNCC, SHIVAMOGGA 70
13.Through which mode of premium payment is convenient for you?
a) Agents b) Online Method
c) ECS d) Others
18.According to you, LIC Policies provide safety and security of the life
a) Yes b) No
19.Any Suggestions_____________________________________
___________________________________________________
Date :
Place :
Signature.
ATNCC, SHIVAMOGGA 71
BIBLIOGRAPHY
Text books
Insurances in India
Internet Sources
Agents Manual
Annual Report of the Company from shikaripura Branch
ATNCC, SHIVAMOGGA 72