Description
Industrial Report
LIFE INSURANCE
CORPORATION OF
INDIA
Contents :
?Introduction
?History and background
?Objcti!s
?"ission and !ision
?O#rations
?Sr!ic $ins o% t& co'#any
?(y E)cuti!s
?"ajor P$ayrs
?"ajor Co'#titors
?S*OT Ana$ysis
?"arkt Sg'nt o% LIC
?Findings and Conc$usions
?R%rnc
INTRODUCTION:
*&at Is Li% Insuranc+
Li% insuranc is a contract t&at #$dgs #ay'nt
o% an a'ount to t& #rson assurd ,or &is no'in- on t& &a##ning o%
t& !nt insurd against. T& contract is !a$id %or #ay'nt o% t& insurd
a'ount during/
a. T& dat o% 'aturity0 or
b. S#ci%id dats at #riodic intr!a$s0 or
c. Un%ortunat dat&0 i% it occurs ar$ir.
*&y * Nd Insuranc/
Li% insuranc is a contact by 1&ic& you can
#rotct yours$% against s#ci%ic uncrtaintis by #aying a #r'iu' o!r a
#riod. Sinc ac& on o% us during our $i!s ar %acd 1it& nu'rous
risks2%a$$ing &a$t&0 %inancia$ $osss0 accidnt and !n %ata$itis.
? Protction
* nd $i% insuranc to b t&r and #rotct t&
#o#$ 1 $o!0 'aking sur t&at our %a'i$y &as a 'ans to $ook a%tr
its$% a%tr 1 ar gon. It is a t&oug&t%u$ businss conc#t dsignd to
#rotct t& cono'ic !a$u o% a &u'an $i% %or t& bn%it o% t&os
%inancia$$y d#ndnt on &i'.
? Rtir'nt
Li% insuranc 'aks sur t&at 1 &a! rgu$ar
inco' a%tr 1 rtir and &$#s us to 'aintain our standard o% $i!ing. It
can nsur t&at our #ost2rtir'nt yars ar s#nt in #ac and co'%ort.
? Sa!ings and In!st'nts
Insuranc is a 'ans to Sa! and In!st. our
#riodic #r'iu's ar $ik Sa!ings and 1 ar assurd o% a $u'# su'
a'ount on 'aturity. A #o$icy can co' in &andy at t& ti' o% our c&i$d3s
ducation or 'arriag4 5sids0 it can b usd as su##$'nta$ rtir'nt
inco'.
? Ta) 5n%its
Li% insuranc is on o% t& bst ta) sa!ing o#tions
today. our ta) can b sa!d t1ic on a $i% insuranc #o$icy.
HISTORY & BACKGROUND OF LIC
? T& story o% insuranc is #robab$y as o$d as t& story o% 'ankind.
T& sa' instinct t&at #ro'#ts 'odrn businss'n today to
scur t&'s$!s against $oss and disastr )istd in #ri'iti!
'n a$so. T&y too soug&t to a!rt t& !i$ cons6uncs o% %ir
and %$ood and $oss o% $i% and 1r 1i$$ing to 'ak so' sort o%
sacri%ic in ordr to ac&i! scurity.
? T& conc#t o% insuranc is $arg$y a d!$o#'nt o% t& rcnt
#ast0 #articu$ar$y a%tr t& industria$ ra 7 #ast %1 cnturis 7 yt
its bginnings dat back a$'ost 8999 yars.
? Li% Insuranc in its 'odrn %or' ca' to India %ro' Eng$and in
t& yar :;:;. Orinta$ Li% Insuranc Co'#any startd by
Euro#ans in Ca$cutta 1as t& %irst $i% insuranc co'#any on
Indian Soi$.
? Latr 1it& t& %%orts o% 'innt #o#$ $ik 5abu "utty$a$ Sa$0
t& %orign $i% insuranc co'#anis startd insuring Indian $i!s.
5ut Indian $i!s 1r bing tratd as sub2standard $i!s and &a!y
)tra #r'iu's 1r bing c&argd on t&'.
? 5o'bay "utua$ Li% Assuranc Socity &ra$dd t& birt& o% %irst
Indian $i% insuranc co'#any in t& yar :;<90 and co!rd Indian
$i!s at nor'a$ rats.
? 5&arat Insuranc Co'#any ,:;=8- 1as a$so on o% suc& co'#anis
ins#ird by nationa$is'. T& S1ads&i 'o!'nt o% :=9>2:=9<
ga! ris to 'or insuranc co'#anis.
? T& Unitd India in "adras0 Nationa$ Indian and Nationa$
Insuranc in Ca$cutta and t& Co2o#rati! Assuranc at La&or
1r stab$is&d in :=98.
? In :=9<0 Hindustan Co2o#rati! Insuranc Co'#any took its birt&
in on o% t& roo's o% t& ?orasanko0 &ous o% t& grat #ot
Rabindranat& Tagor0 in Ca$cutta.
? T& Indian "rcanti$0 @nra$ Assuranc and S1ads&i Li% ,$atr
5o'bay Li%- 1r so' o% t& co'#anis stab$is&d during t&
sa' #riod. Prior to :=:A India &ad no $gis$ation to rgu$at
insuranc businss.
? In t& yar :=:A0 t& Li% Insuranc Co'#anis Act0 and t&
Pro!idnt Fund Act 1r #assd.
? T& Insuranc Act :=B; 1as t& %irst $gis$ation go!rning not on$y
$i% insuranc but a$so non2$i% insuranc to #ro!id strict stat
contro$ o!r insuranc businss.
? LIC &ad > Cona$ o%%ics0 BB di!isiona$ o%%ics and A:A branc&
o%%ics0 a#art %ro' its cor#orat o%%ic in t& yar :=>8.
? Today LIC %unctions 1it& A9D; %u$$y co'#utriCd branc& o%%ics0
:99 di!isiona$ o%%ics0 < Cona$ o%%ics and t& Cor#orat o%%ic.
? LIC3s *id Ara Nt1ork co!rs :99 di!isiona$ o%%ics and
conncts a$$ t& branc&s t&roug& a "tro Ara Nt1ork.
? LIC &as tid u# 1it& so' 5anks and Sr!ic #ro!idrs to o%%r on2
$in #r'iu' co$$ction %aci$ity in s$ctd citis.
? LIC3s ECS and AT" #r'iu' #ay'nt %aci$ity is an addition to
custo'r con!ninc. A#art %ro' on2$in (iosks and IERS0 In%o
Cntrs &a! bn co''issiond at "u'bai0 A&'dabad0
5anga$or0 C&nnai0 Hydrabad0 (o$kata0 N1 D$&i0 Pun and
'any ot&r citis.
? LIC &as $aunc&d its SATELLITE SA"PAR( o%%ics. Fro' t&n
to no10 LIC &as crossd 'any 'i$stons and &as st
un#rcdntd #r%or'anc rcords in !arious as#cts o% $i%
insuranc businss.
OBJECTIVES OF LIC
F S#rad Li% Insuranc 1id$y and in #articu$ar to t& rura$ aras and to
t& socia$$y and cono'ica$$y back1ard c$asss 1it& a !i1 to rac&ing
a$$ insurab$ #rsons in t& country and #ro!iding t&' ad6uat %inancia$
co!r against dat& at a rasonab$ cost.
F "a)i'iC 'obi$iCation o% #o#$Gs sa!ings by 'aking insuranc2$inkd
sa!ings ad6uat$y attracti!.
F 5ar in 'ind0 in t& in!st'nt o% %unds0 t& #ri'ary ob$igation to its
#o$icy&o$drs0 1&os 'ony it &o$ds in trust0 1it&out $osing sig&t o% t&
intrst o% t& co''unity as a 1&o$H t& %unds to b d#$oyd to t& bst
ad!antag o% t& in!stors as 1$$ as t& co''unity.
F Conduct businss 1it& ut'ost cono'y and 1it& t& %u$$ ra$iCation t&at
t& 'onys b$ong to t& #o$icy&o$drs.
F Act as trusts o% t& insurd #ub$ic in t&ir indi!idua$ and co$$cti!
ca#acitis.
F "t t& !arious $i% insuranc nds o% t& co''unity t&at 1ou$d aris
in t& c&anging socia$ and cono'ic n!iron'nt.
F In!o$! a$$ #o#$ 1orking in t& Cor#oration to t& bst o% t&ir
ca#abi$ity in %urt&ring t& intrsts o% t& insurd #ub$ic by #ro!iding
%%icint sr!ic 1it& courtsy.
F Pro'ot a'ongst a$$ agnts and '#$oys o% t& Cor#oration a sns
o% #artici#ation0 #rid and job satis%action t&roug& disc&arg o% t&ir
dutis 1it& ddication to1ards ac&i!'nt o% Cor#orat Objcti!.
MISSON & VISION
"ission
IE)#$or and n&anc t& 6ua$ity o% $i% o% #o#$ t&roug& %inancia$
scurity by #ro!iding #roducts and sr!ics o% as#ird attributs 1it&
co'#titi! rturns0 and by rndring rsourcs %or cono'ic
d!$o#'nt.I
Eision
IA trans2nationa$$y co'#titi! %inancia$ cong$o'rat o% signi%icanc
to socitis and Prid o% India.I
OPERATIONS OF LIC ALL OVER INDIA
SERVICE LINES OF THE COMPNAY
INSURANCE PLANS
As indi!idua$s it is in&rnt to di%%r. Eac& indi!idua$s
insuranc nds and r6uir'nts ar di%%rnt %ro' t&at o% t& ot&rs.
LICs Insuranc P$ans ar #o$icis t&at ta$k to you indi!idua$$y and gi!
you t& 'ost suitab$ o#tions t&at can %it your r6uir'nt.
PENSION PLANS
Pnsion P$ans ar Indi!idua$ P$ans t&at gaC into your
%utur and %ors %inancia$ stabi$ity during your o$d ag. T&s #o$icis
ar 'ost suitd %or snior citiCns and t&os #$anning a scur %utur0 so
t&at you n!r gi! u# on t& bst t&ings in $i%.
UNIT PLANS
Unit #$ans ar in!st'nt #$ans %or t&os 1&o ra$is t&
1ort& o% &ard2arnd 'ony. T&s #$ans &$# you s your sa!ings yi$d
ric& bn%its and &$# you sa! ta) !n i% you donGt &a! consistnt
inco'.
SPECIAL PLANS
LIC3s S#cia$ P$ans ar not #$ans but o##ortunitis t&at
knock on your door onc in a $i%ti'. T&s #$ans ar a #r%ct b$nd o%
insuranc0 in!st'nt and a $i%ti' o% &a##inss4
@ROUP SCHE"E
@rou# Insuranc Sc&' is $i% insuranc #rotction to
grou#s o% #o#$. T&is sc&' is ida$ %or '#$oyrs0 associations0
socitis tc. and a$$o1s you to njoy grou# bn%its at ra$$y $o1 costs.
KEY EXECUTIVES
S&ri T. S. EI?AJAN ,C&air'an-
S&ri. D.(. "&rotra ,"anaging Dirctor 2 LIC-
S&ri. T&o'as "at&1 T. ,"anaging Dirctor 2 LIC-
S&ri. A.(. Dasgu#ta ,"anaging Dirctor 2 LIC-
S&ri. As&ok C&a1$a ,Financ Scrtary0 "inistry o% Financ0 @o!t. o%
India-
S&ri. @.C. C&atur!di ,Additiona$ Scrtary0 D#art'nt o% Financia$
Sr!ics0 "inistry o% Financ0 @o!t. o% India.-
S&ri. Jogs& Lo&iya ,C&air'an cu' "anaging Dirctor0 @IC o% India-
S&ri. T.C. Enkat Subra'anian ,C&air'an K "anaging Dirctor. E)#ort
I'#ort 5ank o% India-
Dr. Sooranad Rajas&k&ran
S&ri. "onis R. (id1ai
MAJOR PLAYERS OF THE INDUSTRY
1. Bajaj Allianz Life Insurance Company Limited
2. Birla Sun Life Insurance Co. Ltd
3. HDC Standard Life Insurance Co. Ltd
!. ICICI "rudential Life Insurance Co. Ltd.
#. I$% &ysya Life Insurance Company Ltd.
'. Life Insurance Corporation of India
(. )a* $e+ ,or- Life Insurance Co. Ltd
.. )et Life India Insurance Company Ltd.
/. 0ota- )a1indra 2ld )utual Life Insurance Limited
13. SBI Life Insurance Co. Ltd
11. 4ata AI% Life Insurance Company Limited
12. 5eliance Life Insurance Company Limited.
13. A6i6a Life Insurance Co. India "6t. Ltd.
1!. Sa1ara India Life Insurance Co7 Ltd.
1#. S1riram Life Insurance Co7 Ltd.
1'. B1arti A8A Life Insurance Company Ltd.
1(. uture %enerali Life Insurance Company Ltd.
1.. IDBI ortis Life Insurance Company Ltd.
1/. Canara HSBC 2riental Ban- of Commerce Life Insurance
Co. Ltd
23. A9%2$ 5eli:are Life Insurance Company Limited.
21. DL "ramerica Life Insurance Co. Ltd.
22. Star ;nion Dai<ic1i Life Insurance Comp. Ltd.
COMPANY ISE LIFE INSURANCE OFFICES
INSURER 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Ae
n 5eli:are '' #. < < < < < < < <
A6i6a 1.' 22! 213 1!3 113 #3 22 12 3 <
Bajaj Allianz 11#1 11'! 133( .(( #'( 1#3 !/ 33 1( 1
B1arti A8A 233 233 (( 1' 1 < < < < <
Birla Sunlife '#2 ''3 #3. 1!. /( #3 !1 2/ 1/ 2
Canara HSBC 33 32 < < < < < < < <
DL "ramerica 32 1# < < < < < < < <
uture %enerali /3 /3 / < < < < < < <
HDC Standard #'. '3/ #'/ !!. 1#3 /3 2' 1. ! <
ICICI "rudential 1/21 2132 1/#. #.3 1(# 13/ '/ 2/ 1! '
IDBI ederal 3( 33 2 < < < < < < <
I$% &ysya 2#! 2'# 2'# 1.3 '. 3. 2' 1' ! <
Indiairst 2 < < < < < < < < <
0ota- )a1indra 21# 1/. 1#1 (# !' !3 3/ 2. / <
)a* $e+,or- (3# (3# 1/! 11. .! '! 33 23 1# <
)etLife 2## 1/3 /! #3 !3 3# 1' . 3 <
5eliance 12!( 11!# (!# 1#/ 1#( .3 !. 3# 1( <
Sa1ara !/ !/ 33 33 1. 1. 2 < < <
SBI Life !/! !./ 233 13. !' 31 1/ 13 # 1
S1riram 1'2 /. #3 12 11 < < < < <
Star ;nion Dai<
ic1i
( 2 < < < < < < < <
4A4A AI% !3/ !#! 2.3 ./ (2 !3 2' 13 ' 3
Private Total 8768 8785 6391 3072 1645 804 416 254 116 13
LIC 32#3 3333 2#22 2331 2223 21/( 21/' 21/1 21/3 21.'
Industr Total 12018 11815 8913 5373 3865 3001 2612 2445 2306 2199
$ote= ><> indicates t1e company 1as not started its operation.
MAJOR COMPETITIORS
5A?A? ALLIANL
? 5ajaj A$$ianC Li% Insuranc is a union bt1n A$$ianC SE0 on o%
t& $argst Insuranc Co'#any and 5ajaj Finsr!.
? A$$ianC SE is a $ading insuranc cong$o'rat g$oba$$y and on o%
t& $argst asst 'anagrs in t& 1or$d0 'anaging assts 1ort&
o!r a Tri$$ion ,O!r INR. >>0 990999 Crors-. A$$ianC SE &as o!r
::> yars o% %inancia$ )#rinc and is #rsnt in o!r <9
countris around t& 1or$d.
ICICI PRUDENTIAL
? ICICI Prudntia$ Li% Insuranc Co'#any is a joint !ntur
bt1n ICICI 5ank 2 on o% IndiaGs %or'ost %inancia$ sr!ics
co'#anis2and Prudntia$ #$c 2 a $ading intrnationa$ %inancia$
sr!ics grou# &ad6uartrd in t& Unitd (ingdo'. Tota$ ca#ita$
in%usion stands at Rs. D<.;9 bi$$ion0 1it& ICICI 5ank &o$ding a
stak o% <DM and Prudntia$ #$c &o$ding A8M.
? T&y bgan t&ir o#rations in Dc'br A999 a%tr rci!ing
a##ro!a$ %ro' Insuranc Rgu$atory D!$o#'nt Aut&ority
,IRDA-. Today0 t&ir nation21id ta' co'#riss o% A9<D branc&s
,inc$usi! o% :0::8 'icro2o%%ics-0 o!r AA>0999 ad!isorsH and <
banc assuranc #artnrs.
? ICICI Prudntia$ is t& %irst $i% insurr in India to rci! a
Nationa$ Insurr Financia$ Strngt& rating o% AAA ,Ind- %ro' Fitc&
ratings. For t&r yars in a ro10 ICICI Prudntia$ &as bn !otd
as IndiaGs "ost Trustd Pri!at Li% Insurr0 by T& Econo'ic
Ti's 2 AC Ni$sn OR@ "arg sur!y o% G"ost Trustd 5randsG.
SOT ANALYSIS OF THE COMPANY
St!en"t#:
:. It is t& o$dst and 'ost 1$$ )#rincd #$ayr &a!ing a Pan India
#rsnc.
A. LIC &as a strong and !ry 1$$ d!$o#d distribution nt1ork.
B. It is &a!ing a &ug consu'r bas and is !o$!d as on o% t& 'ost
#o1r%u$ brands o% t& country.
D. It &as a $arg #roduct #ort%o$io and c$ai' stt$'nt is asir to gt.
>. It &as t& ad!antag o% go!rn'nt guarant is acco'#anid 1it& it.
8. Largst insuranc Co'#any in t& 1or$d in Custo'r 5as ,AB cror
custo'rs-
<. No.: insuranc co'#any in t& 1or$d in tr's o% agncy ,about :.:
"i$$ion agnts-
;. LIC is No.: insurr in t& 1or$d in Eo$u' K So$d around B.<>
Cr.Po$icis in A99<2A99;.
=. And 5iggst Ra$ Estat O1nr n)t to Indian Rai$1ays.
:9.LIC is on o% t& Hig&st inco' ta) #$aying OrganiCation. For
Financia$ Jar A99<29;0 LIC &as #aid ad!anc Ta) Rs.A8A<.
Cr. K
Sr!ic Ta) Rs.:A=A. :> Cr.
::.Has Hig&st insuranc Pro%ssiona$s , C$ub "'br agnts -
:A.On$y D countris in t& 1or$d &a! 'or #o#u$ation t&at LICNs #o$icy
&o$drs.
:B.No.: insuranc Co'#any in t& 1or$d in tr's o% c$ai's #aid.
.LIC Stt$s A.A: c$ai's #r scond0 LIC stt$d :B= $ak&s c$ai's
during t& yar A99<2A99;.
:>.Pro'#t stt$'nt o% c$ai's ,=<M 'aturity c$ai' stt$d on or b%or
du dat-
:8.On o% t& Lo1st outstanding C$ai' Ratio in t& 1or$d , "aturityOS
5 C$ai'29.9<M-
Ad!ancd Tc&no$ogy2For bttr Custo'r Sr!ic
:. Co'#utriCd and nt1orkd A9D; branc& o%%ics and :>=
sat$$it o%%ics t&roug&out t& country.
A. Us o% Hig& Tc&2*AN0LAN0IERS K ED"S
B. LIC is scond $argst PC usr in t& country.
t&roug& a$$ branc&s in t& country.
D. Pr'iu' Pay'nt Faci$ity )tndd t&roug& nt1orkd A9D;
branc&s0 ECS0 AT"Gs t&roug& intrnt0 on$in #orta$s0 co$$cting bank
,A)is 5ank-0 AP on$in0 t&roug& S"S0 t&roug& s$ctd agnts0 No1 LIC
Pr'iu' can a$so b #aid t&roug&.
>. Po$icy Ho$drGs Porta$ a$$o1 on $in accss to #o$icy status and ot&r
dtai$s.
8. In%o cntr st u# in :A citis %or custo'rs to intract asi$y. Dia$2
:A>: %or dtai$s.
<. D> intracti! Eoic Rs#ons Syst' ,IERS- cntrs a$$ o!r t&
country to #ro!id in%or'ation on #o$icy sr!icing.
F$n%n&$%' St!en"t#s
F LICGs in!st'nt inco' in A99<29; 1as Rs.D908>> Crors. Out o% Tota$
inco' o% Rs0 :0<80>>=.A; Crs.
F Tota$ Assts o% t& cor#oration as on B:.B.9< 1r Rs. 80<D0>.<; Crs.
F Largst institutiona$ in!stor in S&ar "arkt. On an a!rag Rs.:99
cror in!std !ry day. During t& yar A99< LIC arnd t& #ro%it
Rs.:90999 Crs. %ro' t& Sa$ o% E6uity.
F Largst Financia$ institutiona$ in!stor bot& E6uity 'arkt K Tr'
Hous.
e%(ness :
? Its '#$oys and ot&r sta%% ar $t&argic and $ast 'oti!atd to
rndr #ro'#t and sincr custo'r sr!ic.
? A%tr sa$s custo'r gri!anc rdrssa$ 'c&anis' is in%%icint.
? Agnts not taking into account t& nds o% #o#$ and #ro'ot
#o$icis &a!ing &ig& co''issions on$y.
? Ery s$o1 dcision 'aking #rocss and intrna$ #rob$'s bt1n
to# 'anag'nt and $o1r cadr sta%%.
? T& to# 'anag'nt or bosss ar 'diocr and t&r is $arg
sca$ corru#tion in 'ain o%%ic.
? T& d!$o#'nt o%%icrs and agnts 1&o ar t& %oundation #i$$ars
o% LIC ar not #ro!idd 1it& )tra %unds and #o1rs to #ro'ot its
#roducts aggrssi!$y.
O))o!t*n$t+:
? E'rgnc o% a &ug 'idd$ inco' consu'r 'arkt in t&
country.
? Po#$ bco'ing 'or a1ar and d'anding so t&r is sco# %or
a 1&o$ $ot o% inno!ati! #roducts.
? Pnsion 'arkts0 &a$t& insuranc and $arg ra$ stat #ort%o$io.
? Protction against t& risk.
? Easy accsss to d!$o#'nt in t& 'or ad!anc 'arkt #ro!id
%urt&r o##ortunity to u#grad t&ir 1orking.
? Incras in t& cono'ic acti!ity &as bco' t& O##ortunity %or
t& $i% insuranc sctor.
? Unco!rd 'arkt
? Natura$ ca$a'itis
? @ro1ing #o#u$ation
? Us Intrnt and 2co''rc tc&no$ogis to dra'atica$$y cut t&
costs andPor to #ursu n1 sa$s2gro1t& o##ortunitis.
T#!e%ts:
? Pri!at ntrants ar natura$$y targting t& #ro%itab$ and 'or
$ucrati! sg'nts0 by #ro!iding bttr sr!ic0 n1 #roducts and
%$)ibi$ity. T&y ar targting t& biggr cor#orat t& ot&r c$ints
in t& 1$$ stab$is&d 'tro#o$itan cntr.
? Dcrasd in bank rat/ t& dcrasd bank rat is t& biggst t&rat
%or t& $i% insuranc sctor. F$uctuation in t& bank rat 'aks big
di%%rnc %or t& $i% insuranc industry. It &as bco' t&rats %or
t& $i% insuranc industry.
? Intrst rat o% P.F and bank sa!ing crat t&rat to insuranc
sctor. A$$ ot&r sa!ing is ob!ious$y t& t&rat %or $i% insuranc
sctor.
? Incrasing intnsity o% co'#tition a'ong industry ri!a$s2'ay
caus s6uC ,%a$$- on #ro%it 'argins. Consu'r3s ducation2
consu'rs ar 'or and 'or con%usd bcaus t& 'arkt #$ayrs
ar o%%ring $arg nu'br o% #roduct rang.
? Fraud in insuranc sctor/ t& 'ajor #rob$' %raud0 1&ic& a%%cts
t& $i% insuranc sctor.
? T& %$ig&t o% ta$nt to n1 ntrants is a$rady in !idnc0 and
cou$d b on t& ris %or so' ti' to co'. Rtaining 6ua$i%id and
co'#tnt )cuti!s 1i$$ b considrab$ c&a$$ngs %or )isting
co'#anis.
MARKET SEGMENT OF LIC
T& #o$icis o% LIC co!rs t& ag grou# 92<9 can a!ai$ t& sr!ics o%
LIC. It 'ans LIC &as !ry !ast 'arkt sg'nt0 c&i$drn0
youngstr0 1orking0 'arrid0 o$d #o#$.
INSURANCE PLANS
Bima Account 1
Bima Account 2
Endowment Plus
Jeevan Anurag Komal Jeevan
CDA Endowment Vesting At
21 Marriage Endowment Or
Educational Annuity Plan CDA Endowment Vesting At
1
Jeevan Kis!ore Jeevan C!!aya
C!ild Career Plan C!ild "uture Plan
Jeevan An#ur
Jeevan Aad!ar
Jeevan Vis!was
$!e Endowment Assurance Policy
$!e Endowment Assurance Policy%&imited Payment
Jeevan Mitra'Dou(le Cover Endowment Plan)
Jeevan Mitra'$ri*le Cover Endowment Plan)
Jeevan Anand
+ew Janara#s!a Plan
Jeevan Amrit
Jeevan Vai(!av ',ingle Premium Endowment Assurance Plan)
Jeevan ,!ree%-
Jeevan Pramu#!
$!e Money Bac# Policy%2. /ears
$!e Money Bac# Policy%20 /ears
Jeevan ,ura(!i%10 /ears
Jeevan ,ura(!i%2. /ears
Jeevan ,ura(!i%20 /ears
Bima Bac!at
Jeevan B!arati % -
$!e 1!ole &i2e Policy
$!e 1!ole &i2e Policy% &imited Payment
$!e 1!ole &i2e Policy% ,ingle Premium
Jeevan Anand
Jeevan $arang
$wo /ear $em*orary Assurance Policy
$!e Converti(le $erm Assurance Policy
Anmol Jeevan%-
Amulya Jeevan%-
Jeevan ,aat!i
PENSION PLANS
Jeevan A#s!ay%V-
SPECIAL PLANS
+ew Bima
3old
Jeevan Mad!ur
Jeevan Mangal
Jeevan Dee*
Bima +ives!
2..0
Jeevan ,aral
HEALTH PLANS
4ealt! Protection Plus
Jeevan Arogya
UNIT PLANS
Endowment Plus
ITHDRAN PLANS
Jeevan +isc!ay Mar#et Plus -
1ealt! Plus Pro2it Plus
Jeevan Aast!a Money Plus%-
Jeevan Vars!a C!ild "ortune Plus
"ortune Plus Jeevan ,aat!i Plus
4ealt! Plus ,amrid!i Plus
Pension Plus Jeevan +id!i
+ew Jeevan D!ara%
-
+ew Jeevan ,ura#s!a%-
Jeevan Vridd!i
GROUP SCHEME
3rou* $erm -nsurance ,c!emes
3rou* -nsurance ,c!eme in &ieu O2 ED&-
3rou* 3ratuity ,c!eme
3rou* ,avings &in#ed -nsurance ,c!eme
3rou* &eave Encas!ment ,c!eme
3rou* Mortgage 5edem*tion Assurance ,c!eme
3rou* Critical -llness 5ider
Jana,!ree Bima /o6ana 'JB/)
,!i#s!a ,a!ayog /o6ana
Aam Admi Bima /o6ana
FINDINGS & CONCLUSIONS:
LIC is t& giant o% t& insuranc sctor. T& o!ra$$ siC o% LIC is 'uc&
'or t&an t&at o% a$$ #ri!at insuranc co'#anis. Pri!at insurrs ar in
)#ansion 'od and ar incrasing t&ir siC but ar sti$$ 'uc& b&ind
LIC. Tota$ #r'iu' d#osits in LIC ar 'uc& &ig&r t&an t& #ri!at
insuranc co'#anis.
Inco' o% LIC is 'uc& gratr t&an #ri!at insuranc co'#anis. 5y t&is
1 can i'agin &o1 big t& LIC is. Hnc it is ob!ious t&at LIC is
&a!ing $arg nu'br o% #o$icy&o$drs. Hnc 1 s t&at LIC is $ading
1&n it co's to siC. It is giant in insuranc sctor &a!ing &ug nt1ork
and custo'r bas.
* s t&at du to )c$$nt sr!ic 6ua$ity and attracti! o%%rs #ri!at
insuranc co'#anis &a! startd gtting a nu'br o% custo'rs. T&y
ar gro1ing ra#id$y. T&oug& LIC is a$so incrasing its custo'r bas but
#ri!at insuranc co'#anis ar 'o!ing at a %ast #ac.
O!ra$$ 1 &a! sn t&at sti$$ LIC is !ry %a'ous but #ri!at insuranc
co'#anis ar gro1ing at )c#tiona$$y %ast #ac.
REFRENCES
? Data on Indian Insuranc %ro' &tt#/PP111.irdaindia.org
? Di%%rnt statistics %ro' &tt#/PP111.rbi.org.in
? ?ourna$s #ub$is&d by Insuranc Rgu$atory K D!$o#'nt
Aut&ority.
? "anag'nt o% %inancia$ institutions by R.". Sri!asta!a
? &tt#/PP111.businsstoday.co'
? &tt#/PP111.businss1or$d.co'
? &tt#/PP111.cono'icti's.co'
? Di%%rnt Sur!y on Insuranc sctor conductd by IIRC.
? Pro%i$ o% Indian Insuranc Co'#anis by IRDA.
doc_116315714.doc
Industrial Report
LIFE INSURANCE
CORPORATION OF
INDIA
Contents :
?Introduction
?History and background
?Objcti!s
?"ission and !ision
?O#rations
?Sr!ic $ins o% t& co'#any
?(y E)cuti!s
?"ajor P$ayrs
?"ajor Co'#titors
?S*OT Ana$ysis
?"arkt Sg'nt o% LIC
?Findings and Conc$usions
?R%rnc
INTRODUCTION:
*&at Is Li% Insuranc+
Li% insuranc is a contract t&at #$dgs #ay'nt
o% an a'ount to t& #rson assurd ,or &is no'in- on t& &a##ning o%
t& !nt insurd against. T& contract is !a$id %or #ay'nt o% t& insurd
a'ount during/
a. T& dat o% 'aturity0 or
b. S#ci%id dats at #riodic intr!a$s0 or
c. Un%ortunat dat&0 i% it occurs ar$ir.
*&y * Nd Insuranc/
Li% insuranc is a contact by 1&ic& you can
#rotct yours$% against s#ci%ic uncrtaintis by #aying a #r'iu' o!r a
#riod. Sinc ac& on o% us during our $i!s ar %acd 1it& nu'rous
risks2%a$$ing &a$t&0 %inancia$ $osss0 accidnt and !n %ata$itis.
? Protction
* nd $i% insuranc to b t&r and #rotct t&
#o#$ 1 $o!0 'aking sur t&at our %a'i$y &as a 'ans to $ook a%tr
its$% a%tr 1 ar gon. It is a t&oug&t%u$ businss conc#t dsignd to
#rotct t& cono'ic !a$u o% a &u'an $i% %or t& bn%it o% t&os
%inancia$$y d#ndnt on &i'.
? Rtir'nt
Li% insuranc 'aks sur t&at 1 &a! rgu$ar
inco' a%tr 1 rtir and &$#s us to 'aintain our standard o% $i!ing. It
can nsur t&at our #ost2rtir'nt yars ar s#nt in #ac and co'%ort.
? Sa!ings and In!st'nts
Insuranc is a 'ans to Sa! and In!st. our
#riodic #r'iu's ar $ik Sa!ings and 1 ar assurd o% a $u'# su'
a'ount on 'aturity. A #o$icy can co' in &andy at t& ti' o% our c&i$d3s
ducation or 'arriag4 5sids0 it can b usd as su##$'nta$ rtir'nt
inco'.
? Ta) 5n%its
Li% insuranc is on o% t& bst ta) sa!ing o#tions
today. our ta) can b sa!d t1ic on a $i% insuranc #o$icy.
HISTORY & BACKGROUND OF LIC
? T& story o% insuranc is #robab$y as o$d as t& story o% 'ankind.
T& sa' instinct t&at #ro'#ts 'odrn businss'n today to
scur t&'s$!s against $oss and disastr )istd in #ri'iti!
'n a$so. T&y too soug&t to a!rt t& !i$ cons6uncs o% %ir
and %$ood and $oss o% $i% and 1r 1i$$ing to 'ak so' sort o%
sacri%ic in ordr to ac&i! scurity.
? T& conc#t o% insuranc is $arg$y a d!$o#'nt o% t& rcnt
#ast0 #articu$ar$y a%tr t& industria$ ra 7 #ast %1 cnturis 7 yt
its bginnings dat back a$'ost 8999 yars.
? Li% Insuranc in its 'odrn %or' ca' to India %ro' Eng$and in
t& yar :;:;. Orinta$ Li% Insuranc Co'#any startd by
Euro#ans in Ca$cutta 1as t& %irst $i% insuranc co'#any on
Indian Soi$.
? Latr 1it& t& %%orts o% 'innt #o#$ $ik 5abu "utty$a$ Sa$0
t& %orign $i% insuranc co'#anis startd insuring Indian $i!s.
5ut Indian $i!s 1r bing tratd as sub2standard $i!s and &a!y
)tra #r'iu's 1r bing c&argd on t&'.
? 5o'bay "utua$ Li% Assuranc Socity &ra$dd t& birt& o% %irst
Indian $i% insuranc co'#any in t& yar :;<90 and co!rd Indian
$i!s at nor'a$ rats.
? 5&arat Insuranc Co'#any ,:;=8- 1as a$so on o% suc& co'#anis
ins#ird by nationa$is'. T& S1ads&i 'o!'nt o% :=9>2:=9<
ga! ris to 'or insuranc co'#anis.
? T& Unitd India in "adras0 Nationa$ Indian and Nationa$
Insuranc in Ca$cutta and t& Co2o#rati! Assuranc at La&or
1r stab$is&d in :=98.
? In :=9<0 Hindustan Co2o#rati! Insuranc Co'#any took its birt&
in on o% t& roo's o% t& ?orasanko0 &ous o% t& grat #ot
Rabindranat& Tagor0 in Ca$cutta.
? T& Indian "rcanti$0 @nra$ Assuranc and S1ads&i Li% ,$atr
5o'bay Li%- 1r so' o% t& co'#anis stab$is&d during t&
sa' #riod. Prior to :=:A India &ad no $gis$ation to rgu$at
insuranc businss.
? In t& yar :=:A0 t& Li% Insuranc Co'#anis Act0 and t&
Pro!idnt Fund Act 1r #assd.
? T& Insuranc Act :=B; 1as t& %irst $gis$ation go!rning not on$y
$i% insuranc but a$so non2$i% insuranc to #ro!id strict stat
contro$ o!r insuranc businss.
? LIC &ad > Cona$ o%%ics0 BB di!isiona$ o%%ics and A:A branc&
o%%ics0 a#art %ro' its cor#orat o%%ic in t& yar :=>8.
? Today LIC %unctions 1it& A9D; %u$$y co'#utriCd branc& o%%ics0
:99 di!isiona$ o%%ics0 < Cona$ o%%ics and t& Cor#orat o%%ic.
? LIC3s *id Ara Nt1ork co!rs :99 di!isiona$ o%%ics and
conncts a$$ t& branc&s t&roug& a "tro Ara Nt1ork.
? LIC &as tid u# 1it& so' 5anks and Sr!ic #ro!idrs to o%%r on2
$in #r'iu' co$$ction %aci$ity in s$ctd citis.
? LIC3s ECS and AT" #r'iu' #ay'nt %aci$ity is an addition to
custo'r con!ninc. A#art %ro' on2$in (iosks and IERS0 In%o
Cntrs &a! bn co''issiond at "u'bai0 A&'dabad0
5anga$or0 C&nnai0 Hydrabad0 (o$kata0 N1 D$&i0 Pun and
'any ot&r citis.
? LIC &as $aunc&d its SATELLITE SA"PAR( o%%ics. Fro' t&n
to no10 LIC &as crossd 'any 'i$stons and &as st
un#rcdntd #r%or'anc rcords in !arious as#cts o% $i%
insuranc businss.
OBJECTIVES OF LIC
F S#rad Li% Insuranc 1id$y and in #articu$ar to t& rura$ aras and to
t& socia$$y and cono'ica$$y back1ard c$asss 1it& a !i1 to rac&ing
a$$ insurab$ #rsons in t& country and #ro!iding t&' ad6uat %inancia$
co!r against dat& at a rasonab$ cost.
F "a)i'iC 'obi$iCation o% #o#$Gs sa!ings by 'aking insuranc2$inkd
sa!ings ad6uat$y attracti!.
F 5ar in 'ind0 in t& in!st'nt o% %unds0 t& #ri'ary ob$igation to its
#o$icy&o$drs0 1&os 'ony it &o$ds in trust0 1it&out $osing sig&t o% t&
intrst o% t& co''unity as a 1&o$H t& %unds to b d#$oyd to t& bst
ad!antag o% t& in!stors as 1$$ as t& co''unity.
F Conduct businss 1it& ut'ost cono'y and 1it& t& %u$$ ra$iCation t&at
t& 'onys b$ong to t& #o$icy&o$drs.
F Act as trusts o% t& insurd #ub$ic in t&ir indi!idua$ and co$$cti!
ca#acitis.
F "t t& !arious $i% insuranc nds o% t& co''unity t&at 1ou$d aris
in t& c&anging socia$ and cono'ic n!iron'nt.
F In!o$! a$$ #o#$ 1orking in t& Cor#oration to t& bst o% t&ir
ca#abi$ity in %urt&ring t& intrsts o% t& insurd #ub$ic by #ro!iding
%%icint sr!ic 1it& courtsy.
F Pro'ot a'ongst a$$ agnts and '#$oys o% t& Cor#oration a sns
o% #artici#ation0 #rid and job satis%action t&roug& disc&arg o% t&ir
dutis 1it& ddication to1ards ac&i!'nt o% Cor#orat Objcti!.
MISSON & VISION
"ission
IE)#$or and n&anc t& 6ua$ity o% $i% o% #o#$ t&roug& %inancia$
scurity by #ro!iding #roducts and sr!ics o% as#ird attributs 1it&
co'#titi! rturns0 and by rndring rsourcs %or cono'ic
d!$o#'nt.I
Eision
IA trans2nationa$$y co'#titi! %inancia$ cong$o'rat o% signi%icanc
to socitis and Prid o% India.I
OPERATIONS OF LIC ALL OVER INDIA
SERVICE LINES OF THE COMPNAY
INSURANCE PLANS
As indi!idua$s it is in&rnt to di%%r. Eac& indi!idua$s
insuranc nds and r6uir'nts ar di%%rnt %ro' t&at o% t& ot&rs.
LICs Insuranc P$ans ar #o$icis t&at ta$k to you indi!idua$$y and gi!
you t& 'ost suitab$ o#tions t&at can %it your r6uir'nt.
PENSION PLANS
Pnsion P$ans ar Indi!idua$ P$ans t&at gaC into your
%utur and %ors %inancia$ stabi$ity during your o$d ag. T&s #o$icis
ar 'ost suitd %or snior citiCns and t&os #$anning a scur %utur0 so
t&at you n!r gi! u# on t& bst t&ings in $i%.
UNIT PLANS
Unit #$ans ar in!st'nt #$ans %or t&os 1&o ra$is t&
1ort& o% &ard2arnd 'ony. T&s #$ans &$# you s your sa!ings yi$d
ric& bn%its and &$# you sa! ta) !n i% you donGt &a! consistnt
inco'.
SPECIAL PLANS
LIC3s S#cia$ P$ans ar not #$ans but o##ortunitis t&at
knock on your door onc in a $i%ti'. T&s #$ans ar a #r%ct b$nd o%
insuranc0 in!st'nt and a $i%ti' o% &a##inss4
@ROUP SCHE"E
@rou# Insuranc Sc&' is $i% insuranc #rotction to
grou#s o% #o#$. T&is sc&' is ida$ %or '#$oyrs0 associations0
socitis tc. and a$$o1s you to njoy grou# bn%its at ra$$y $o1 costs.
KEY EXECUTIVES
S&ri T. S. EI?AJAN ,C&air'an-
S&ri. D.(. "&rotra ,"anaging Dirctor 2 LIC-
S&ri. T&o'as "at&1 T. ,"anaging Dirctor 2 LIC-
S&ri. A.(. Dasgu#ta ,"anaging Dirctor 2 LIC-
S&ri. As&ok C&a1$a ,Financ Scrtary0 "inistry o% Financ0 @o!t. o%
India-
S&ri. @.C. C&atur!di ,Additiona$ Scrtary0 D#art'nt o% Financia$
Sr!ics0 "inistry o% Financ0 @o!t. o% India.-
S&ri. Jogs& Lo&iya ,C&air'an cu' "anaging Dirctor0 @IC o% India-
S&ri. T.C. Enkat Subra'anian ,C&air'an K "anaging Dirctor. E)#ort
I'#ort 5ank o% India-
Dr. Sooranad Rajas&k&ran
S&ri. "onis R. (id1ai
MAJOR PLAYERS OF THE INDUSTRY
1. Bajaj Allianz Life Insurance Company Limited
2. Birla Sun Life Insurance Co. Ltd
3. HDC Standard Life Insurance Co. Ltd
!. ICICI "rudential Life Insurance Co. Ltd.
#. I$% &ysya Life Insurance Company Ltd.
'. Life Insurance Corporation of India
(. )a* $e+ ,or- Life Insurance Co. Ltd
.. )et Life India Insurance Company Ltd.
/. 0ota- )a1indra 2ld )utual Life Insurance Limited
13. SBI Life Insurance Co. Ltd
11. 4ata AI% Life Insurance Company Limited
12. 5eliance Life Insurance Company Limited.
13. A6i6a Life Insurance Co. India "6t. Ltd.
1!. Sa1ara India Life Insurance Co7 Ltd.
1#. S1riram Life Insurance Co7 Ltd.
1'. B1arti A8A Life Insurance Company Ltd.
1(. uture %enerali Life Insurance Company Ltd.
1.. IDBI ortis Life Insurance Company Ltd.
1/. Canara HSBC 2riental Ban- of Commerce Life Insurance
Co. Ltd
23. A9%2$ 5eli:are Life Insurance Company Limited.
21. DL "ramerica Life Insurance Co. Ltd.
22. Star ;nion Dai<ic1i Life Insurance Comp. Ltd.
COMPANY ISE LIFE INSURANCE OFFICES
INSURER 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Ae
n 5eli:are '' #. < < < < < < < <A6i6a 1.' 22! 213 1!3 113 #3 22 12 3 <
Bajaj Allianz 11#1 11'! 133( .(( #'( 1#3 !/ 33 1( 1
B1arti A8A 233 233 (( 1' 1 < < < < <
Birla Sunlife '#2 ''3 #3. 1!. /( #3 !1 2/ 1/ 2
Canara HSBC 33 32 < < < < < < < <
DL "ramerica 32 1# < < < < < < < <
uture %enerali /3 /3 / < < < < < < <
HDC Standard #'. '3/ #'/ !!. 1#3 /3 2' 1. ! <
ICICI "rudential 1/21 2132 1/#. #.3 1(# 13/ '/ 2/ 1! '
IDBI ederal 3( 33 2 < < < < < < <
I$% &ysya 2#! 2'# 2'# 1.3 '. 3. 2' 1' ! <
Indiairst 2 < < < < < < < < <
0ota- )a1indra 21# 1/. 1#1 (# !' !3 3/ 2. / <
)a* $e+,or- (3# (3# 1/! 11. .! '! 33 23 1# <
)etLife 2## 1/3 /! #3 !3 3# 1' . 3 <
5eliance 12!( 11!# (!# 1#/ 1#( .3 !. 3# 1( <
Sa1ara !/ !/ 33 33 1. 1. 2 < < <
SBI Life !/! !./ 233 13. !' 31 1/ 13 # 1
S1riram 1'2 /. #3 12 11 < < < < <
Star ;nion Dai<
ic1i
( 2 < < < < < < < <
4A4A AI% !3/ !#! 2.3 ./ (2 !3 2' 13 ' 3
Private Total 8768 8785 6391 3072 1645 804 416 254 116 13
LIC 32#3 3333 2#22 2331 2223 21/( 21/' 21/1 21/3 21.'
Industr Total 12018 11815 8913 5373 3865 3001 2612 2445 2306 2199
$ote= ><> indicates t1e company 1as not started its operation.
MAJOR COMPETITIORS
5A?A? ALLIANL
? 5ajaj A$$ianC Li% Insuranc is a union bt1n A$$ianC SE0 on o%
t& $argst Insuranc Co'#any and 5ajaj Finsr!.
? A$$ianC SE is a $ading insuranc cong$o'rat g$oba$$y and on o%
t& $argst asst 'anagrs in t& 1or$d0 'anaging assts 1ort&
o!r a Tri$$ion ,O!r INR. >>0 990999 Crors-. A$$ianC SE &as o!r
::> yars o% %inancia$ )#rinc and is #rsnt in o!r <9
countris around t& 1or$d.
ICICI PRUDENTIAL
? ICICI Prudntia$ Li% Insuranc Co'#any is a joint !ntur
bt1n ICICI 5ank 2 on o% IndiaGs %or'ost %inancia$ sr!ics
co'#anis2and Prudntia$ #$c 2 a $ading intrnationa$ %inancia$
sr!ics grou# &ad6uartrd in t& Unitd (ingdo'. Tota$ ca#ita$
in%usion stands at Rs. D<.;9 bi$$ion0 1it& ICICI 5ank &o$ding a
stak o% <DM and Prudntia$ #$c &o$ding A8M.
? T&y bgan t&ir o#rations in Dc'br A999 a%tr rci!ing
a##ro!a$ %ro' Insuranc Rgu$atory D!$o#'nt Aut&ority
,IRDA-. Today0 t&ir nation21id ta' co'#riss o% A9<D branc&s
,inc$usi! o% :0::8 'icro2o%%ics-0 o!r AA>0999 ad!isorsH and <
banc assuranc #artnrs.
? ICICI Prudntia$ is t& %irst $i% insurr in India to rci! a
Nationa$ Insurr Financia$ Strngt& rating o% AAA ,Ind- %ro' Fitc&
ratings. For t&r yars in a ro10 ICICI Prudntia$ &as bn !otd
as IndiaGs "ost Trustd Pri!at Li% Insurr0 by T& Econo'ic
Ti's 2 AC Ni$sn OR@ "arg sur!y o% G"ost Trustd 5randsG.
SOT ANALYSIS OF THE COMPANY
St!en"t#:
:. It is t& o$dst and 'ost 1$$ )#rincd #$ayr &a!ing a Pan India
#rsnc.
A. LIC &as a strong and !ry 1$$ d!$o#d distribution nt1ork.
B. It is &a!ing a &ug consu'r bas and is !o$!d as on o% t& 'ost
#o1r%u$ brands o% t& country.
D. It &as a $arg #roduct #ort%o$io and c$ai' stt$'nt is asir to gt.
>. It &as t& ad!antag o% go!rn'nt guarant is acco'#anid 1it& it.
8. Largst insuranc Co'#any in t& 1or$d in Custo'r 5as ,AB cror
custo'rs-
<. No.: insuranc co'#any in t& 1or$d in tr's o% agncy ,about :.:
"i$$ion agnts-
;. LIC is No.: insurr in t& 1or$d in Eo$u' K So$d around B.<>
Cr.Po$icis in A99<2A99;.
=. And 5iggst Ra$ Estat O1nr n)t to Indian Rai$1ays.
:9.LIC is on o% t& Hig&st inco' ta) #$aying OrganiCation. For
Financia$ Jar A99<29;0 LIC &as #aid ad!anc Ta) Rs.A8A<.
Cr. K Sr!ic Ta) Rs.:A=A. :> Cr.
::.Has Hig&st insuranc Pro%ssiona$s , C$ub "'br agnts -
:A.On$y D countris in t& 1or$d &a! 'or #o#u$ation t&at LICNs #o$icy
&o$drs.
:B.No.: insuranc Co'#any in t& 1or$d in tr's o% c$ai's #aid.
.LIC Stt$s A.A: c$ai's #r scond0 LIC stt$d :B= $ak&s c$ai's during t& yar A99<2A99;.
:>.Pro'#t stt$'nt o% c$ai's ,=<M 'aturity c$ai' stt$d on or b%or
du dat-
:8.On o% t& Lo1st outstanding C$ai' Ratio in t& 1or$d , "aturityOS
5 C$ai'29.9<M-
Ad!ancd Tc&no$ogy2For bttr Custo'r Sr!ic
:. Co'#utriCd and nt1orkd A9D; branc& o%%ics and :>=
sat$$it o%%ics t&roug&out t& country.
A. Us o% Hig& Tc&2*AN0LAN0IERS K ED"S
B. LIC is scond $argst PC usr in t& country.
t&roug& a$$ branc&s in t& country.
D. Pr'iu' Pay'nt Faci$ity )tndd t&roug& nt1orkd A9D;
branc&s0 ECS0 AT"Gs t&roug& intrnt0 on$in #orta$s0 co$$cting bank
,A)is 5ank-0 AP on$in0 t&roug& S"S0 t&roug& s$ctd agnts0 No1 LIC
Pr'iu' can a$so b #aid t&roug&.
>. Po$icy Ho$drGs Porta$ a$$o1 on $in accss to #o$icy status and ot&r
dtai$s.
8. In%o cntr st u# in :A citis %or custo'rs to intract asi$y. Dia$2
:A>: %or dtai$s.
<. D> intracti! Eoic Rs#ons Syst' ,IERS- cntrs a$$ o!r t&
country to #ro!id in%or'ation on #o$icy sr!icing.
F$n%n&$%' St!en"t#s
F LICGs in!st'nt inco' in A99<29; 1as Rs.D908>> Crors. Out o% Tota$
inco' o% Rs0 :0<80>>=.A; Crs.
F Tota$ Assts o% t& cor#oration as on B:.B.9< 1r Rs. 80<D0>
.<; Crs.F Largst institutiona$ in!stor in S&ar "arkt. On an a!rag Rs.:99
cror in!std !ry day. During t& yar A99< LIC arnd t& #ro%it
Rs.:90999 Crs. %ro' t& Sa$ o% E6uity.
F Largst Financia$ institutiona$ in!stor bot& E6uity 'arkt K Tr'
Hous.
e%(ness :
? Its '#$oys and ot&r sta%% ar $t&argic and $ast 'oti!atd to
rndr #ro'#t and sincr custo'r sr!ic.
? A%tr sa$s custo'r gri!anc rdrssa$ 'c&anis' is in%%icint.
? Agnts not taking into account t& nds o% #o#$ and #ro'ot
#o$icis &a!ing &ig& co''issions on$y.
? Ery s$o1 dcision 'aking #rocss and intrna$ #rob$'s bt1n
to# 'anag'nt and $o1r cadr sta%%.
? T& to# 'anag'nt or bosss ar 'diocr and t&r is $arg
sca$ corru#tion in 'ain o%%ic.
? T& d!$o#'nt o%%icrs and agnts 1&o ar t& %oundation #i$$ars
o% LIC ar not #ro!idd 1it& )tra %unds and #o1rs to #ro'ot its
#roducts aggrssi!$y.
O))o!t*n$t+:
? E'rgnc o% a &ug 'idd$ inco' consu'r 'arkt in t&
country.
? Po#$ bco'ing 'or a1ar and d'anding so t&r is sco# %or
a 1&o$ $ot o% inno!ati! #roducts.
? Pnsion 'arkts0 &a$t& insuranc and $arg ra$ stat #ort%o$io.
? Protction against t& risk.
? Easy accsss to d!$o#'nt in t& 'or ad!anc 'arkt #ro!id
%urt&r o##ortunity to u#grad t&ir 1orking.
? Incras in t& cono'ic acti!ity &as bco' t& O##ortunity %or
t& $i% insuranc sctor.
? Unco!rd 'arkt
? Natura$ ca$a'itis
? @ro1ing #o#u$ation
? Us Intrnt and 2co''rc tc&no$ogis to dra'atica$$y cut t&
costs andPor to #ursu n1 sa$s2gro1t& o##ortunitis.
T#!e%ts:
? Pri!at ntrants ar natura$$y targting t& #ro%itab$ and 'or
$ucrati! sg'nts0 by #ro!iding bttr sr!ic0 n1 #roducts and
%$)ibi$ity. T&y ar targting t& biggr cor#orat t& ot&r c$ints
in t& 1$$ stab$is&d 'tro#o$itan cntr.
? Dcrasd in bank rat/ t& dcrasd bank rat is t& biggst t&rat
%or t& $i% insuranc sctor. F$uctuation in t& bank rat 'aks big
di%%rnc %or t& $i% insuranc industry. It &as bco' t&rats %or
t& $i% insuranc industry.
? Intrst rat o% P.F and bank sa!ing crat t&rat to insuranc
sctor. A$$ ot&r sa!ing is ob!ious$y t& t&rat %or $i% insuranc
sctor.
? Incrasing intnsity o% co'#tition a'ong industry ri!a$s2'ay
caus s6uC ,%a$$- on #ro%it 'argins. Consu'r3s ducation2
consu'rs ar 'or and 'or con%usd bcaus t& 'arkt #$ayrs
ar o%%ring $arg nu'br o% #roduct rang.
? Fraud in insuranc sctor/ t& 'ajor #rob$' %raud0 1&ic& a%%cts
t& $i% insuranc sctor.
? T& %$ig&t o% ta$nt to n1 ntrants is a$rady in !idnc0 and
cou$d b on t& ris %or so' ti' to co'. Rtaining 6ua$i%id and
co'#tnt )cuti!s 1i$$ b considrab$ c&a$$ngs %or )isting
co'#anis.
MARKET SEGMENT OF LIC
T& #o$icis o% LIC co!rs t& ag grou# 92<9 can a!ai$ t& sr!ics o%
LIC. It 'ans LIC &as !ry !ast 'arkt sg'nt0 c&i$drn0
youngstr0 1orking0 'arrid0 o$d #o#$.
INSURANCE PLANS
Bima Account 1
Bima Account 2
Endowment Plus
Jeevan Anurag Komal Jeevan
CDA Endowment Vesting At
21 Marriage Endowment Or
Educational Annuity Plan CDA Endowment Vesting At
1
Jeevan Kis!ore Jeevan C!!aya
C!ild Career Plan C!ild "uture Plan
Jeevan An#ur
Jeevan Aad!ar
Jeevan Vis!was
$!e Endowment Assurance Policy
$!e Endowment Assurance Policy%&imited Payment
Jeevan Mitra'Dou(le Cover Endowment Plan)
Jeevan Mitra'$ri*le Cover Endowment Plan)
Jeevan Anand
+ew Janara#s!a Plan
Jeevan Amrit
Jeevan Vai(!av ',ingle Premium Endowment Assurance Plan)
Jeevan ,!ree%-
Jeevan Pramu#!
$!e Money Bac# Policy%2. /ears
$!e Money Bac# Policy%20 /ears
Jeevan ,ura(!i%10 /ears
Jeevan ,ura(!i%2. /ears
Jeevan ,ura(!i%20 /ears
Bima Bac!at
Jeevan B!arati % -
$!e 1!ole &i2e Policy
$!e 1!ole &i2e Policy% &imited Payment
$!e 1!ole &i2e Policy% ,ingle Premium
Jeevan Anand
Jeevan $arang
$wo /ear $em*orary Assurance Policy
$!e Converti(le $erm Assurance Policy
Anmol Jeevan%-
Amulya Jeevan%-
Jeevan ,aat!i
PENSION PLANS
Jeevan A#s!ay%V-
SPECIAL PLANS
+ew Bima
3old
Jeevan Mad!ur
Jeevan Mangal
Jeevan Dee*
Bima +ives!
2..0
Jeevan ,aral
HEALTH PLANS
4ealt! Protection Plus
Jeevan Arogya
UNIT PLANS
Endowment Plus
ITHDRAN PLANS
Jeevan +isc!ay Mar#et Plus -
1ealt! Plus Pro2it Plus
Jeevan Aast!a Money Plus%-
Jeevan Vars!a C!ild "ortune Plus
"ortune Plus Jeevan ,aat!i Plus
4ealt! Plus ,amrid!i Plus
Pension Plus Jeevan +id!i
+ew Jeevan D!ara%
-
+ew Jeevan ,ura#s!a%-
Jeevan Vridd!i
GROUP SCHEME
3rou* $erm -nsurance ,c!emes
3rou* -nsurance ,c!eme in &ieu O2 ED&-
3rou* 3ratuity ,c!eme
3rou* ,avings &in#ed -nsurance ,c!eme
3rou* &eave Encas!ment ,c!eme
3rou* Mortgage 5edem*tion Assurance ,c!eme
3rou* Critical -llness 5ider
Jana,!ree Bima /o6ana 'JB/)
,!i#s!a ,a!ayog /o6ana
Aam Admi Bima /o6ana
FINDINGS & CONCLUSIONS:
LIC is t& giant o% t& insuranc sctor. T& o!ra$$ siC o% LIC is 'uc&
'or t&an t&at o% a$$ #ri!at insuranc co'#anis. Pri!at insurrs ar in
)#ansion 'od and ar incrasing t&ir siC but ar sti$$ 'uc& b&ind
LIC. Tota$ #r'iu' d#osits in LIC ar 'uc& &ig&r t&an t& #ri!at
insuranc co'#anis.
Inco' o% LIC is 'uc& gratr t&an #ri!at insuranc co'#anis. 5y t&is
1 can i'agin &o1 big t& LIC is. Hnc it is ob!ious t&at LIC is
&a!ing $arg nu'br o% #o$icy&o$drs. Hnc 1 s t&at LIC is $ading
1&n it co's to siC. It is giant in insuranc sctor &a!ing &ug nt1ork
and custo'r bas.
* s t&at du to )c$$nt sr!ic 6ua$ity and attracti! o%%rs #ri!at
insuranc co'#anis &a! startd gtting a nu'br o% custo'rs. T&y
ar gro1ing ra#id$y. T&oug& LIC is a$so incrasing its custo'r bas but
#ri!at insuranc co'#anis ar 'o!ing at a %ast #ac.
O!ra$$ 1 &a! sn t&at sti$$ LIC is !ry %a'ous but #ri!at insuranc
co'#anis ar gro1ing at )c#tiona$$y %ast #ac.
REFRENCES
? Data on Indian Insuranc %ro' &tt#/PP111.irdaindia.org
? Di%%rnt statistics %ro' &tt#/PP111.rbi.org.in
? ?ourna$s #ub$is&d by Insuranc Rgu$atory K D!$o#'nt
Aut&ority.
? "anag'nt o% %inancia$ institutions by R.". Sri!asta!a
? &tt#/PP111.businsstoday.co'
? &tt#/PP111.businss1or$d.co'
? &tt#/PP111.cono'icti's.co'
? Di%%rnt Sur!y on Insuranc sctor conductd by IIRC.
? Pro%i$ o% Indian Insuranc Co'#anis by IRDA.
doc_116315714.doc