Project

On
Life Insurance corporation of
India
Submitted By

Gaurav Kumar Gupta

P.G.D.M First Semester

Gaurav Kumar Gupta

BML/01/14

School Of
Management
Science
Lucknow
PREFACE

The field of insurance has taken a giant leap at the

threshold of twentieth century. Insurance have
become an integral part of life of man all over the
globe.

The

proverb

Need

is

the

mother

of

invention is proving equally correct in case of

insurance
Insurance have already had a considerable impact
on many aspects of our society. This project on life
Insurance corporation of India deals with the
automation of various activities done in insurance
Gaurav Kumar Gupta
BML/01/14

like how the insurance companies doing there

business and what is the feature of life insurance.

ACKNOWLEDGEMENT
We are hearty grateful to Mr. Sudhir Sharan sir
(director).
source

of

They

have

inspiration

always
had

been
work,

an

invaluable

sincerity

and

dedication.
I t gives me immense pleasure in submitting this

project on Life Insurance Corporation of India . I

have developed this project in partial fulfi llment of
P.G.D.M (I Sem) from SCHOOL OF MANAGEMENT
SCIENCE LUCKNOW
I would like to express my sincere ineptness to my
Project Guide SHUBHENDRA SINGH PARIHAR for his
constant guidance and valuable support during the
project work. Encouragement and excellent guidance
in the successful completion of the project work.
Gaurav Kumar Gupta
BML/01/14

And of course nothing could have come true without

the

support

classmates

of
for

my
their

family,
constant

friends

and

all

the

encouragement

and

useful tips through out my project. I will always

grateful to them.

Gaurav Kumar Gupta

CONTENTS
Introduction

Preface
Acknowledgement
Objective of the project
Methodology
Finding
Project Analysis
Conclusion
Li
Gaurav Kumar Gupta
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 mitation
Bibliography

INTRODUCTION
LIC of India is the one and only public sector life insurance
Company in India.
Some of the important milestones in the life insurance business in
India are:
1818: Oriental Life Insurance Company, the first life insurance
company on Indian soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life
insurance company started its business.
1912: The Indian Life Assurance Companies Act enacted as the
first statute to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and
non-life insurance businesses.
1938: Earlier legislation consolidated and amended to by the
Insurance Act with the objective of protecting the interests of the
insuring public.
1956: 245 Indian and foreign insurers and provident societies are
taken over by the central government and nationalised. LIC formed
by an Act of Parliament, viz. LIC Act, 1956, with a capital
contribution of Rs. 5 crore from the Government of India.
Gaurav Kumar Gupta
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The General insurance business in India, on the other hand, can

trace its roots to the Triton Insurance Company Ltd., the first
general insurance company established in the year 1850 in
Calcutta by the British.

Nationalization
In 1955, parliamentarian Feroze Gandhi raised the matter of
insurance fraud by owner's of private insurance companies. In the
ensuing investigations, one of India's wealthiest businessmen,
Ram Kishan Dalmia, owner of the Times of India newspaper, was
sent to prison for two months. Eventually, the Parliament of India
passed the Life Insurance of India Act on 1956-06-19, and the Life
Insurance Corporation of India was created on 1956-09-01, by
consolidating the life insurance business of 245 private life insurers
and other entities offering life insurance services. Nationalization of
the life insurance business in India was a result of the Industrial
Policy Resolution of 1956, which had created a policy framework
for extending state control over at least seventeen sectors of the
economy, including the life insurance. The company began
operations with 5 zonal offices, 33 divisional offices and 212
branch offices.
Current status
Over its existence of around 50 years, Life Insurance Corporation
of India, which commanded a monopoly of soliciting and selling life
insurance in India, created huge surpluses, and contributed around
7 % of India's GDP in 2006.
The Corporation, which started its business with around 300
offices, 5.6 million policies and a corpus of INR 459 million, has
grown to 2,048 offices servicing around 180 million policies and a
corpus of over INR 3.4 trillion.
The organization now comprises 2048 branches, 100 divisional
offices and 8 zonal offices, and employs over 1 million agents. It

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also operates in 12 other countries, primarily to cater to the needs

of Non Resident Indians.
With the change in the India's economic philosophy from the early
1990s, and the subsequent relaxation of state control over several
sectors of the economy, the monopolistic position of the Life
Insurance Corporation of India was diluted, and it has had to
compete with a number of other corporate entities, Indian as well
as transnational Life Insurance brands.
In the financial year 2006-07 Life Insurance Corporation of India's
number of policy holders are said to have crossed a whopping 200
million (fourth in terms of population of the countries of the world)

Subsidiaries
LIC owns the following subsidiaries:

Life Insurance Corporation of India International: This is

a joint venture offshore company promoted by LIC which
commenced operations in July, 1989 with the objectives of
offering US$ denomimated policies to cater to the insurance
needs of NRIs and providing insurance services to holders of
LIC policies currently residing in the Gulf. LIC International
operates in all GCC countries.

LIC Nepal: A joint venture company formed in 2001 with the

Vishal Group of Industries, Nepal.

LIC Lanka: A joint venture company formed in 2003 with the

Bartleet Group of Companies, Sri Lanka.

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School Of
Management
Science
Lucknow

Certificate
It is to certify that the project work entitled Life
Insurance

Corporation

of

India which is being

submitted by me in partial fulfillment of the requirement

for award of the diploma of PGDM (IST SEM). is an
authentic

work

Management

carried
Science

out

by

under

me
the

at

School

supervision

of
and

Gaurav Kumar Gupta

BML/01/14

guidance of Mr. Shubhendra Singh Parihar The matter

embedded in this project work has not been submitted
earlier for the award of any other degree or diploma.
Gaurav Kumar Gupta
PGDM (IST SEM)

(Signature & Name of Director)

(Signature of student)

Objective of the Project

When LIC was formed in 1956 through the
amalgamation of 225 private companies, its
business objectives complemented its social
objectives. The main objective is to spread life insurance to every nook
and corner of the country especially rural areas, to socially and
economically backward classes and provide them reasonably-priced
financial cover against death.
Other objectives include encouraging

people to save for the future by making insurance-linked savings

more attractive and secure. The funds created are then utilized
and invested for nation building. The insurance business is
conducted with the full realizations that LIC is only a trustee of the
insured public and priority is given to meet the needs that arise
due to change in the social and economic environments.
Even today after 50 years, the core value of social commitment
has not changed. What have changed in recent times are
customers expectations and the environment in which the life
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insurance sector operates. This is due to globalization which has

opened up the insurance sector to private players.
IT for Insurance
IT policy flows from the business and social objectives. IT usage
covers all business activities of the organization. This includes
finance, investment, product development, actuarial, underwriting,
customer relationship management, marketing, policy servicing,
human resource development, office servicing, and estate
management.
Its role is not to automate processes. Rather, it is a strategic tool to
simplify procedures and revamp processes. This helps create a
very efficient customer service management system. It not only
provides anywhere, any time service, it also provides greater
accountability, transparency and responsiveness in all business
processes.
In todays world, IT is a must for any industry to keep pace with the
customers changing expectations. This is especially relevant in
the service industry. The insurance sector has to ensure that the
technology it chooses does not lag behind where customer
expectations are concerned.
In our case, LIC has more than 16 crore policy holders. So it has to
induct the best IT products available and use them to cater to the
needs of the customers and deliver anywhere any time service on
demand and to add value to its new products. The trust and the
goodwill of the customer gained in the last 50 years have to be
consolidated by making all activities more customer-focused.
For instance, LIC has a corporate Web site to provide information
on products, services, policy status, grievances and premium
calculator. Other facilities include touch-screen information kiosks
at central locations to provide 24 x 7 inquiry services to customers.
Info centers are set up at major cities to provide call centre
type services. Alternate premium payment channels like ECS,
Internet payment gateways as well as ATMs of Banks

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
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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.

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.
The One True Objective R m+ A4 O/ I( E
This attitude-and the resulting vagueness-seems to come from the
fact that most of us don't really know what we mean by career
objective. Reading between the lines of expert opinions, we begin
to see that they may really be talking about two different kinds of
objectives:

1. A career objective for your life; and

2. A career objective for your resume
Come again? Focus those glazing eyes, and let's take a closer
look.
Gaurav Kumar Gupta
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The entry of private players in life insuranceThe entry of private players in life insurance has resulted in a drop
in the market share for Life Insurance Corporation.
But what has perhaps been lost in all the heat and dust of market
share and topline growth is that the Life Insurance Corporation has
emerged as a regional giant with assets of over Rs 8-lakh crore,
which has been providing consistent, returns to the government
and policyholders for 52 years. Life Insurance Corporation
chairman TS Vijay an speaks of how LIC is a growing organization
and the corporations plans of regaining its lost market share.

Impact of the financial crisis on Life Insurance Corporation

LIC is a public sector insurer and a domestic investor. As such, we
are not directly affected by the global financial crisis. However, the
volatility in Indian financial market due to the uncertainty in global
markets may affect returns we get on our investments. But LIC has
an indisputable record of prudently planning its investments and
getting the maximum returns on the policyholders money. We will
continue to do that in any type of scenario.
Why has the new business growth slowed? What will be the
impact of the lower growth on LICs performance? Will it affect
ratios?
Total premium growth of LIC has always been quite stable, even
when there are periodical ups and downs in new premium income.
Last year, we ended the year with around 10% growth in First
Premium income despite several odds. However, the growth in
total premium income was quite healthy, indicating better
conservation ratio.
Our overall expense ratio is the least in the industry. Last year, I
was only 11.94%, and it was just 5.56%, excluding the
commission. The surplus generated was a record high of Rs
16,598.65 crore, which enabled us to give higher terminal bonus to
our with profit policyholders and to increase dividend to the
government.
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Having said that, I agree that there has been a decline in the new
premium in the current financial year. One of the reasons was that
after withdrawal of our successful old plans, we did not
immediately introduce any new ULIP. Since then, we have
launched new products and the response has been very positive
and encouraging.
Also, we had some issues with the union of development officers,
which have been more or less sorted out through series of
consultations and discussions. In September, the figures have
started picking up, and I am sure, we will recapture the lost ground
very soon.
Private insurers are growing their market share by growing
distribution. LIC is close to saturation level in terms of distribution.
How will you retain the market share?
It is not accurate to say that LIC has reached its saturation point in
terms of distribution, as we are expanding our reach and network.
Other insurers are perhaps expanding very fast and the effect is
reflected in their balance sheets. We do have constraints of capital
and any growth has to be supported by internal accruals only.
Hence, we follow the policy of steady and profitable growth and
distribute 95% of surplus to our with profit policyholders. Such a
practice makes our products better. And I am sure, this will, in the
long run, determine who becomes winner in the life insurance
market in India.
How do you propose to comply with IRDAs decision to cap single
company exposure at 10% of a companys capital?
First of all, let me say that new regulations are not only about
equity exposure, but encompass several other aspects too.
Second, these norms are not just LIC-centric, but applicable to the
whole industry. Our total assets of more than Rs 8-lakh crore are
our legacy built on the basis of earlier regulations and norms under
the Insurance Act.
We have always followed applicable norms in our operations and
we have an impeccable track record of being a prudent investor,
keeping in view the best interests of our policyholders. New
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investment norms have several changes from the

earlier one and we are working on them and are in touch with
IRDA where we have problems.
Will the exposure limit force LIC to divest in blue chips and invest
in companies that have a lower credit rating?

Methodology

TYPE OF RESEARCHTo study the Insurance company in India. I have gone through
various news papers, magazines, websites and collected
information and data. This study is exploratory in nature
because I am not going to give any suggestion or
recommendation.

Data collection:- (Secondary data)

In data collection method we shall collect the secondary data
from the following sources.
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News paper
Magazine
Internet
Visual vmpro software(Lic)
Other sources for information.
STATICAL TOOLS

SPSS 16.0
MS EXCEL
MS Word.
MS Power point

Parameters of Research

Product range offered.

Service quality.
Claims settlements history.
Network
Benefit offered to customers

Finding

Product offered to customer

Children's Policy
Komal Jeevan - Plan No. 159
Children Deferred - Plan no.41
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Jeevan Kishore - Plan no.102

Jeevan Chhaya - Plan no.103
Marriage Endowment/Educational Annuity - Plan No. 90
Jeevan Anurag - Plan no.168
Endowment Policy
Endowment with Profits - Plan no.14 Limited Payment
Endowment with Profits - Plan no.48
Jeevan Mitra - Plan no.88
New JanaRaksha Policy - Plan no.91
Jeevan Anand Plan no. 149
Jeevan Mitra Triple Cover - Plan no.133

Group Insurance Policy

Janashree Bima Yojana
Group Insurance Scheme in lieu of EDLI
Group (Term) Insurance Scheme
Group Savings Linked Insurance Scheme
Group Superannuation Scheme
Group Mortgage Redemption Assurance Scheme

Joint Life Policy

Jeevan Saathi - Plan no.89
Money Back Policy
Money Back with Profit - Plan no.75
New Money Back - Plan no.93
Jeevan Surabhi 15 yrs - Plan no.106
Jeevan Surabhi 20 yrs - Plan no.107
Jeevan Surabhi 25 yrs - Plan no.108
Jeevan Bharati Plan No 160
Jeevan Samriddhi Plan No 154, 155, 156 157
Bima Bachat- Plan no.175
Pension Plans or Annuities

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New Jeevan Dhara - Plan no.148

New Jeevan Suraksha Plan no. 147
Jeevan Akshay II Plan no. 163
Jeevan Nidhi Plan no. 169
Jeevan Akshay V Plan no. 183

Special Plans
Term Assurance - Plan no.43
Mortgage Redemption - Plan no.52
Jeevan Aadhar - Plan no.114
Market Plus - Plan No 181
Jeevan Vishwas Plan No. 136
Jeevan Saral Plan No. 165
Jeevan Pramukh Plan No. 167
Bima Nivesh 2005 Plan No 171
Money Plus-Plan No 180
Term Policy
Convertible Term Assurance - Plan no.58
New Bima Kiran
Term Assurance
Anmol Jeevan I Plan No- 164
Amulya Jeevan-Plan No-177

Service Quality
Your Policy Bond And Its Safety
Your Policy Number
Policy Conditions
Alterations In Policy
If Your Policy Is Lost
Your Contact Address Keep Us Posted Without Fail
Admission Of Age
Nomination
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Assignment
When To Pay The Premiums
Grace Period For Premium Payment
How And Where To Pay The Premiums
Policy Status Where Available
Revival Of Lapsed Policies
Availing Loans On Policies
Surrender Value
Maturity, Survival Benefits, Disability And Death Claims
Policies Under Salary Savings Scheme
Helpline

Your Policy Bond and Its Safety

The policy bond is the document that is given to you after we accept
your proposal for insurance.
The risk coverage commences after acceptance of your proposal and
the conditions and privileges of your policy are mentioned in the
policy bond.
This is an important document which would be referred to for
various servicing interactions with you Keep the policy bond safe.
It will be required at the time of settlement of claims on the policy.
You will also require it if you are availing a loan or want to assign
the policy.
Inform your spouse/Parents/Children as to where the policy is kept.
In case you are handing over the policy bond to any person or
office, please take a written acknowledgement. Keep a Photostat
copy of the policy for your reference.

Your Policy Number

The policy number is consisting of nine digits and can be found at
the top left hand corner of the schedule of your policy bond.
This is a unique identification number that distinguishes your
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policies from other policies and will remain unchanged throughout

the lifetime of the policy.
Remember to quote the policy number every time in your
correspondence, as it helps us to locate your records for reference.

Policy Conditions
Every policy is taken for different types of needs; therefore the
conditions for your policy will vary according to the Plan and Term of
the policy.
The policy schedule contains on the first page of your policy, like the
ones mentioned above as well as other information like nominee,
your address etc. It also shows the date of commencement of your
policy, date of birth, date of maturity, due dates and months in
which the renewal premiums are to be paid etc.
The second page onwards carries the various policy conditions like
risk coverage, additional risks coverage if opted for, standard
benefits that are available for all policies, accident benefit if opted
for, exclusion of risks if any and other conditions that govern the
contract of insurance. Apart from death benefits there are other
standard benefits and benefits opted by the policyholder

Alterations In Policy
There may be instances when you would like to make alterations in
your policy like change of premium payment mode, reduction in
premium paying term etc.
your applications may be given in writing to the branch that services
your policy for our further action.

If Your Policy Is Lost

Kindly make a thorough search before concluding that you have lost
the policy bond. Look for the same within your residence, among
your investment papers, at your office and even with your agent to
whom you might have entrusted the document for some reason.
It could have been even pledged with LIC/any other financial
institution for availing a loan by you. LIC retains the policy bond
when you go in for a loan against the policy. Make sure that the
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document you are searching is not one that has already been
assigned to LIC, or to another financial institution.
If the policy bond is partially destroyed due to natural causes like,
fire, flood, etc, the remaining portion may be returned as evidence
of loss of policy to LIC, while applying for a duplicate policy.
In case you are sure that the policy bond is untraceable due to
unknown causes, there is a simple procedure to comply with while
applying for the duplicate policy at the branch that services your
policy

Your Contact Address Keep Us Posted

without Fail
Your address is very important for us. Without your latest address
we would not be in a position to contact you for any service
offering. We would not like to keep any benefit that is due to you
pending for want of this very important information. Whenever you
shift residences, please inform the new address to us. Otherwise
any communication we send to you, like premium notices, discharge
vouchers for maturity and survival benefits etc., will get delayed in
reaching you.
LIC provides for change of addresses, inclusion of telephone
numbers, mobile numbers and email addresses in your contact
addresses information. Kindly inform your servicing branch to
incorporate the same in your policy records.

Admission of Age
Check your policy bond and see if your date of birth is correctly
given therein.
This is one of the factors on which the premiums you pay for your
policy is arrived at.
This would also form the basis of all future policies you might avail
from us.
In case your earlier policies do not have your date of birth
incorporated and you do have a date of birth certificate issued by
the competent authority, you may send an attested copy of the
same to us, with a request to admit your age (Click here to find
out the certificates of age that LIC accepts.)

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Nomination
Ensure that the nominees name is correctly incorporated in the
policy bond.
You may change the nomination in your policy any time during the
lifetime of the policy
In case you have not included the name of the nominee till now,
please do not delay; inform us your nomination immediately. Kindly
note that the change of nomination has to be done in the branch
that services your policy.
The nominee is the person to whom the insurance claim amounts
would be payable, in case anything unfortunate within the purview
of the policy conditions happens to you.
The policy is usually taken by you to benefit your family nominate
the persons wholl have the welfare of your family in your absence;
the usual preferences being spouse and children.
You may nominate even minors like your children, in which case you
have to name another person wholl have the welfare of the minor
children, as an appointee

Assignment
In case you are raising a loan against your policy from LIC or any
other financial institution, your policy would have to be assigned to
LIC or the financial institution.
When you assign the policy the title of the policy is shifted from
your name to that of the institution.
The policy would be reassigned to you on the repayment of the
loan.
A fresh nomination should be done after reassignment of the policy.
Assignment of policies can be done even when a loan is not required
or for some special purposes

When to Pay the Premiums

Remember to pay your premium in time, even if our notices do not
reach you. There may be a postal delay.
LIC usually sends premium notices one month in advance to the due
month of the premium.
The months in which premiums are due are given on the first page
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of the Policy bond.

Grace Period For Premium Payment

In case you have not paid the premium within the due date there is
still time for you to make the payments without payment of interest
on the premium. This period is called the grace period. (With the
exception of some plans)
The grace period for policies where the premium payment mode is
monthly is 15 days from the due date.
The grace period for policies where the premium payment mode is
quarterly, half-yearly or yearly is one month but not less than30
days.

How and Where To Pay the Premiums

By cash, local cheque (subject to realization of cheque),

Demand Draft at Branch Office.
The DD and cheques or Money Order may be sent by post.
You can pay your premiums at any of our Branches as 99% of
our Branches are networked.
Many Banks do accept standing instructions to remit the
premiums. So by providing a standing instruction to your
Bank to debit your account for the premium amount and send
it vide a bankers cheque to LIC, on the due dates and months
mentioned on your policy bond.
Through Internet : Payment of premiums can be made
through Internet through Service Providers viz.HDFC Bank,
ICICI Bank, Times of Money, Bill Junction, UTI Bank, Bank of
Punjab, Citibank, Corporation Bank, Federal Bank and
BillDesk.
Premium payment can also be made through ATMs of
Corporation Bank and UTI Bank.
Premium payment can also be made through Electronic
Clearing Service (ECS) which has been launched at Mumbai,
Hyderabad, Chennai, Kolkata, New Delhi, Kanpur, Bangalore,
Vijaywada, Patna, Jaipur, Chandigarh, Trivandrum. A
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policyholder having an account in any Bank which is a

Member of the local Clearing House can opt for ECS debit to
pay premiums. The policyholders wishing to use this system
would have to fill up a Mandate Form available at our
Branches/DO and get it certified by the Bank. The certified
Mandate Forms are to be submitted to our BO/DO.

Policy can be anywhere in India:

Citibank Kiosks at Industrial Assurance Building, Church gate,

New India Building, Santa Cruz, Jeevan Shikha Building,
Borivili are dedicated for collection of premiums through
cheques.

Policy Status Where Available

Status of your policy indicates if your policy is in force or has lapsed
due to non-payment of premium. It also provides other important
information with respect to your policy, for your reference.
The status of your policy is available at the branch that services
your policies.
It is also available through our Interactive Voice Response Systems
in select cities
In cities connected by our computerized networks the status will be
available in any of the branches.
Now the policy status of policies being serviced in the cities
connected by network are also available through Internet In select
cities online touch screen kiosks are also provided where you can
view your policy status.

Revival of Lapsed Policies

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If your policy has lapsed due to non-payment of premiums within

the due date, the terms and conditions of the policy contract are
rendered void, till you revive your policy.
A lapsed policy has to be revived by payment of the accumulated
premiums with interest as well as giving the health requirements as
required. Always keep your policy in force to ensure that your family
gets their financial protection assured by your policy.
However certain concessions dependent on the term for which you
have paid the premiums are available with the exception of some
plans for claims concession

Availing Loans on Policies

Many of our plans are of endowment type and you would be allowed
to raise a loan against your policy should you require funds.
You repay the loan with interest or continue paying the interest and
allow the loan to be deducted at the time of the claim payments.
Further loans on policies are also allowed after deduction of earlier
out standings Most financial institutions too allow loans against LIC
policies based on the value LIC quotes on request from you.

Surrender Value
This is the value which is the amount payable to you should you
decide to discontinue the policy and encash the same from LIC.
Surrender value is payable only after three full years premiums are
paid to LIC. More over if it is a participating policy the Bonus get
attached to it as per prevalent rules.
Surrender of policy is not recommended since the surrender value
would always be proportionately low.
Should you decide to go in for insurance at this stage further
insurance would be available to you at a much higher premium
because your age would have advanced since taking out the earlier
policy.
Therefore retention of earlier policies and continuation of all policies
without allowing them to lapse is the best strategy for continuing
life insurance protection.

Maturity, Survival Benefits, Disability And

Death Claims:
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When your Survival Benefits (For Money back policies) or maturity

benefits are due, we send intimations to you in advance. However, if
the survival benefit amount is less than or equal to Rs.60, 000/- the
same will be sent to you directly without policy or discharge forms
with a few exceptions.
If such intimations have not come to you before the due date kindly
inform us so that we may take necessary action

Policies Under Salary Savings Scheme

If you have taken your policy under salary Saving Scheme please
read the following suggestions:
1. For each Salary Savings Scheme Policy your employer deducts
the premium from your salary and sends a consolidated
cheque for all the policies of the employees to a designated
Branch of LIC, where all the policy files are maintained.
2. You can find out which Branch of LIC your policy file will be
serviced either from your Agent or from the pay roll
department of your employer.
3. You will need to know which branch of LIC services your policy
because you will require their help in getting your
Maturity/Survival Benefits, for any alterations like change of
address and for availing loans etc.
4. In case you are in a transferable job please inform the
designated Branch of LIC about your new place of posting.
After you join your new place of posting please ask your
employer the LIC Branch where the premiums are being
remitted by your office there and inform the LIC Branch which
was servicing you earlier so that your policy files can be
transferred.
5. This way your records will never be at correct place and will
receive the services from us like maturity, in time.
In case you are leaving your employer for a new job or joining
another firm, you have the facility to either continue the
policy under the Salary Savings Scheme of your new firm or
to convert the payment mode into quarterly, half yearly or
yearly mode.
6. Always ensure the continuity of premium payments to avoid
frequent revivals of policy. This may become a cumbersome
process for a person who is in a transferable job.
7. Please do not send any installments directly to us. Your
premium must come through your employer only. We do not
have systems to adjust single installments received from our
Gaurav Kumar Gupta
BML/01/14

policy holders. Otherwise please convert the mode into

quarterly, half yearly, or yearly and pay directly. This way you
also get a discount on the premium payable.
8. Leave a permanent local address with us so that we can reach
you wherever you are even after many years.

Disclaimer:
The information contained herein is only to guide you and does not
purport to be binding on either party. The contractual implications of
your policy will be subject to the terms and conditions of your
proposal and the policy document issued to you. They may be also
subject to the rules and regulations of the corporation notified from
time to time which may be subject to revision and change. The
contract will also be subject to the prevailing laws of the country.

Helpline
To ensure that you get the best out of your policy please read our
guidelines carefully.
1. Keep the policy bond safe. It will be required at the time of
maturity or Survival Benefit. You will also require it if you are
availing a loan or want to assign your policy.
2. Inform your spouse/Parents/Children as to where the policy is
kept.
3. When you shift residences, please inform the new address to
us. Otherwise any communication we send to you, like
premium notices, discharge vouchers, etc., will get delayed in
reaching you.
4. Ensure that the nominees name is correctly incorporated in
the policy bond.
5. Remember to pay your premium in time, even if our notices
do not reach you. There may be a postal delay. The months in
which premium are due are given in the Policy bond.
6. You may pay the premium by Cheque, DD or Money Order.
Remember to quote the policy number every time in your
correspondence. The policy number is consisting of nine digits
and can be found at the top left hand corner of the policy
bond.
7. Check your policy bond and see if your date of birth is
correctly given therein.
Gaurav Kumar Gupta
BML/01/14

8. In case you are handing over the policy bond to any person or
office, including the LIC office please take a written
acknowledgement.
9. When your Survival Benefits (For Money back policies) or
maturity benefits are due, we send intimations to your three
months in advance. If such intimations have not come to your
even within one month of the due date kindly inform us so
that we may take necessary action.
10.
When in doubt call your agent or the Branch from where
you took the policy.
Our Branches are our Operating Units. Hence, for any servicing
matter, contact the Servicing Branch of your policy. However, for
obtaining general information, you can contact any of the Branches
of LIC.

Claims Settlements History

MUMBAI: The percentage of rejected claims to total claims is
much higher for private life insurance companies compared with
state-owned Life Insurance Corporation (LIC).
According to data released by the Insurance Regulatory and
Development Authority (IRDA), private life insurers received
13,139 individual death claims in 2006-07 compared with 6.02 lakh
claims recorded by LIC. Of the total number of claims received,
private life insurance companies settled 72.7% of the claims, while
LIC managed to settle 96.94% of claims.
The number of claims rejected by private insurers as a percentage
of claims booked was 13.98% in 2006-07, while the claims
rejected by LIC were 1.43%. Claims pending with private insurers
as on March 31, 2007 stood at 13.32% of total claims received
against 1.63% for LIC. LIC paid Rs 4289.28 crore as death claim
benefits against Rs 155.46 crore paid by private life insurers.
Life insurers receive two types of claim, the first are the maturity
claims where the policyholder gets the savings that accrue under
his policy at the end of the term. Bulk of the claims comes under
this category, and usually there is no dispute on maturity claims, as
these payments are akin to repayment of a maturing bond.
Gaurav Kumar Gupta
BML/01/14

The second set of claims, which are far fewer, are death claims.
Section 45 IA of the Insurance Act 1938 allows insurers to reject
claims if there is suppression of material fact by the insured. In life
insurance, any information that has bearing on the mortality of the
proposer is considered to be a material fact. So, if a proposer
suffers from a serious ailment which is not disclosed, the insurer
can reject his claims.
However, the Supreme Court has said that the clause cannot be
used unilaterally and it is for the insurer to establish that the nondisclosure has a bearing on mortality. In the first few years of
operations, private life insurers did not have much of a claims
experience. Therefore, a comparison on claims servicing between
the private sector and LIC was not possible. Now, with the private
life industry being in its seventh year, there has been a substantial
number of maturity and death claims.
According to an official with a private life insurance company,
repudiations were higher in group policies. Also, given that private
companies have been only a few years in existence, their share of
early claims are higher. Early claims are those which occur within
two years of the policyholder acquiring a policy. In such claims,
insurers double check on whether the terms of the policy have
been strictly met.
Another aspect of claims
Admission Of Age:
Age is the main basis of calculation of premium under life
insurance policies. The following are accepted as evidence of age:

Certified extract from Municipal or Local Bodys records

made at the time of birth.
Certificate of Baptism or Certified Extract from Family Bible,
if it contains age or date of birth.
Certified Extract from School or College records, if age or
date of birth is stated therein.
Certified Extract from Service Register in the case of Govt.
employees and employees of Quasi-Govt. Institutions or
Passport issued by the Passport Authorities in India.

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BML/01/14

Payment of Premium:

By cash, local cheque (subject to realization of cheque),

Demand Draft at Branch Office.
The DD and cheques or Money Order may be sent by post.
You can pay your premiums at any of our Branches as 99%
of our Branches are networked.
Many Banks do accept standing instructions to remit the
premiums. So by providing a standing instruction to your
Bank to debit your account for the premium amount and
send it vide a bankers cheque to LIC, on the due dates and
months mentioned on your policy bond.
Through Internet : Payment of premiums can be made
through Internet through Service Providers viz.HDFC Bank,
ICICI Bank, Times of Money, Bill Junction, UTI Bank, Bank of
Punjab, Citibank, Corporation Bank, Federal Bank and
BillDesk.
Premium payment can also be made through ATMs of
Corporation Bank and UTI Bank.
Premium payment can also be made through Electronic
Clearing Service (ECS) which has been launched at
Mumbai, Hyderabad, Chennai, Kolkata, New Delhi, Kanpur,
Bangalore, Vijay Wada, Patna, Jaipur, Chandigarh,
Trivandrum, Ahmedabad, Pune, Goa and Nagpur,
Secunderabad & Visakhapatnam. A policyholder having an
account in any Bank which is a Member of the local Clearing
House can opt for ECS debit to pay premiums. The
policyholders wishing to use this system would have to fill up
a Mandate Form available at our Branches/DO and get it
certified by the Bank. The certified Mandate Forms are to be
submitted to our BO/DO.
Policy can be anywhere in India.

Citibank Kiosks at Industrial Assurance Building, Churchgate,

New India Building, Santacruz, Jeevan Shikha Building,
Borivili are dedicated for collection of premiums through
cheques.

Days Of Grace:

Policyholder should pay the premiums on due dates.

However, a grace period of one month but not less than 30
days will be allowed for payment of yearly/halfGaurav Kumar Gupta
BML/01/14

yearly/quarterly premiums and 15 days for monthly

premiums.
When the days of grace expire on a Sunday or a public
holiday, the premium may be paid on the following working
day to keep the policy in force.
If the premium is not paid before the expiry of the days of
grace, the policy lapses.

Revival of Lapsed Policy:

If the policy has lapsed, it can be revived during the life time
of the life assured, within a period of five years from the date
of the first unpaid premium but before the date of maturity
subject to certain conditions.
The Corporation offers three convenient schemes of revival
viz., Ordinary Revival, Special Revival and Installment
Revival. Policies can also be revived under Loan-cumRevival and SB-cum-Revival schemes.
Request for revival may be made to the Branch Office
servicing the policy.

Change of Address and Transfer Of Policy Records:

The policyholder should immediately intimate the change of

his/her address to the Branch Office servicing the policy. The
correct address facilitates better service and quicker
settlement of claims.
Policy records can also be transferred from one Branch
Office to another for servicing, as requested by the
policyholder.

Loss of Policy Document:

The Policy Document is an evidence of the contract between

the Insurer and the Insured. Hence the policyholder should
preserve the Policy Bond till the contracted amount under it
is settled.
Loss of the Policy Document should be immediately
intimated to the Branch Office where it is serviced.

Loans:
Gaurav Kumar Gupta
BML/01/14

Loans are granted on policies to the extent of 90% of

Surrender Value of the policies which are in force and 85% of
the Surrender Value in case of policies which are paid-up,
inclusive of the cash value of bonus. The rate of interest
charged at present is 9% p.a. payable half-yearly.
Loans are not granted for a period shorter than six months.
The Conditions and Privileges printed on the back of the
Policy Bond states whether a particular policy is with or
without the loan facility.

Relief to Policyholders:

The Corporation generally allows concessions on payment of

premiums, settlement of claims, issue of duplicate policies,
etc when the policyholder are affected by natural calamities
such as droughts, cyclones, floods, earthquakes, etc.

Nomination:
Nomination is a right conferred on the holder of a Policy of Life
Assurance on his own life to appoint a person/s to receive policy
moneys in the event of the policy becoming a claim by the
assureds death. The Nominee does not get any other benefit
except to receive the policy moneys on the death of the Life
Assured.
Survival Benefit/Maturity Claims:

LIC settles survival benefit/maturity claims on or before the

due date.
Policyholder are intimated well in advance by the Branch
Office which services the policy regarding the payment, and
the necessary Discharge Voucher is also sent for execution
by the assured. In case the policyholder does not get any
intimation from the Branch Office concerned, he/she should
contact them, quoting the Policy Number.
Survival Benefit payment up to Rs.60,000/- are settled
without insisting for Policy Bond and Discharge Voucher.

Death Claims:

If the life assured dies during the term of the policy, death
claim arises. The death of the policyholder should be
Gaurav Kumar Gupta
BML/01/14

immediately intimated in writing to the Branch Office where

the policy is serviced along with the following particulars:
1. The No./s of the policy/ies
2. The name of the policyholder
3. Death Certificate issued by concerned Authority
4. The date of death
5. The cause of death and
6. Claimants relationship with the deceased
On receipt of the intimation of death, necessary claim forms
are sent by the Branch Office for completion along with
instructions regarding the procedure to be followed by the
claimant.
The claims which have arisen after a period of three years
are treated as non-early claims and settled within 30 days
from the date of receipt of all requirements.
The claims that have arisen within a period of two years from
the date of commencement of the policy, are treated as early
claims and investigation is compulsory in such cases.
The claim is usually payable to the nominee/assignee or the
legal heirs, as the case may be. However, if the deceased
policyholder has not nominated/assigned the policy or if
he/she has not made a suitable provision regarding the
policy moneys by way of a Will, the claim is payable to the
holder of a Succession Certificate or some such evidence of
title from a Court of Law.
The Corporation grants claims concessions under certain
Plans whereby payment of full sum assured is made, subject
to the deduction of unpaid premiums with interest till the date
of death and unpaid premiums falling due before the next
anniversary of the policy, in the event of the death of the life

Assured within a period of six months or one year from the date
of the first unpaid premium, provided premiums have been paid
for at least three years and five years respectively.
Claim Review Committee:
The Corporation settles a large number of Death Claims every
year. Only in case of fraudulent suppression of material
information is the liability repudiated. This is to ensure that
claims are not paid to fraudulent persons at the cost of honest
policyholders. The number of Death Claims repudiated is,
however, very small. Even in these cases, an opportunity is
Gaurav Kumar Gupta
BML/01/14

given to the claimant to make a representation for

consideration by the Review Committees of the Zonal office
and the Central Office. As a result of such review, depending
on the merits of each case, appropriate decisions are taken.
The Claims Review Committees of the Central and Zonal
Offices have among their Members, a retired High
Court/District Court Judge. This has helped providing
transparency and confidence in our operations and has
resulted in greater satisfaction among claimants, policyholders
and
public.

Network of LIC

All Life Insurance Corporation branches in the country would be

interconnected under Metro Area Network (MAN) inaugurated here
on Thursday.
Speaking at the function, K Vaidyalingam, LIC southern zonal
manager, said about 1500 branches would be getting covered
under MAN in which the premium amount of the policy holder
could be remitted in any branch. Besides, the policy holder gets his
status report, policy position, revival and quotation from the
network. In every one hour the system got upgraded, he said.
In southern region there are about 10 lakh new policy holders with
a business of Rs 6500 crore. About settlement of claims, 92 per
cent of policies were settled on or before maturity, he said, adding,
LIC was in a better position and 100 per cent connectivity was
taking place.
Kottayam stood third in premium collection during the period
between April to August 2002, the first being Kozhikode and
Thiruvananthapuram in second position in southern region.
The premium amount collected in 2001 was Rs.74,000 crore
through 2.32 crore new policies by 8.2 lakh agents. LIC has
Gaurav Kumar Gupta
BML/01/14

introduced a new group insurance scheme for Corporation Bank

deposit holders.

INTERNATIONAL OPERATIONS/ASSOCIATES
LIC has always acknowledged the need to expand. Our
expanding efforts have been consistent and are evident
though our associations given below for your reference .

INTERNATIONAL OPERATIONS
LIC Fiji
LIC Mauritius
LIC United Kingdom
LIC (International) B.S.C (C), Bahrain
LIC (Nepal) Ltd
LIC (Lanka) Ltd
Saudi Indian Company for Co-op. Insurance,

KSA.
Gaurav Kumar Gupta
BML/01/14

 LIC Mauritius Offshore Ltd.

LIC Co-ordinating Office in India

ASSOCIATES
LIC Housing Finance Ltd.
LICHLF Care Homes Ltd.
LIC Mutual Fund AMC Ltd.

Benefit offered to Customers

LIC the best-known Indian brand: Chidambaram

Gaurav Kumar Gupta

BML/01/14

FROM STRENGTH TO STRENGTH: Union Finance Minister P.

Chidambaram launching LICs web portal in Chennai on
Tuesday. Others from left are D.K. Mehotra, Managing
Director, LIC, and A.K. Shukla, Chairman. Photo: Shaju
John

CHENNAI: Describing Life Insurance Corporation of India as the

best-known Indian brand, Union Finance Minister P. Chidambaram,
said on Tuesday that even after the opening up of the insurance
sector to private firms, the Corporation remained the market
leader.
Launching LIC's e-portal here, he said the Corporation "supported
us (government) when we opened up insurance because it was
confident of doing better in a competitive environment. LIC
continues to be the market leader with 88 per cent market share of
new policies and 78 per cent of premium. It is clearly recognised
as the market leader."

Gaurav Kumar Gupta

BML/01/14

The e-portal (licindia.com) will provide information on policy status,

bonus, premium payment, loans and change of address. It will
facilitate online payment of premium and has details of the doctors
and agents. It also has a branch locator and `maturity alert' facility.
The objective is to provide world-class service.
Noting that the State-owned Corporation utilised information
technology in its relentless effort to remain the leader, Mr.
Chidambaram said: "My goal is to make LIC a world class
insurance company. It is nearly world class now." All 2,048
branches of LIC, which had been adjudged the best user of IT by
NASSCOM, were fully automated. Barring ten, all the branches
were networked.
Mr. Chidambaram said the e-portal was another example of LIC's
constant innovation using information technology. Some of the
multi-interfaces it offered to customers included call centres, IVRS,
SMS and satellite branches.
Bonus rates
Announcing the bonus rates on LIC policies, Mr. Chidambaram
said on Whole Life policies it would be Rs. 71 (per Rs. 1,000 sum
assured). On endowment policies the bonus ranges from Rs. 34 to
Rs. 50. It will be between Rs. 32 and Rs. 45 on money-back
policies.
The bonus for Jeevan Dhara and Jeevan Suraksha schemes has
been enhanced and the terminal bonus retained at last year's
level. The bonus is in addition to the special bonus announced
during the golden jubilee celebrations of LIC in September.
LIC Chairman A.K. Shukla said the Corporation catered to 18 crore
policy holders and the size of the life fund had crossed Rs. 3.85
lakh crores.
Stating that LIC believed in deploying the latest technology for the
benefit of all concerned, he said the portal would enable customers
to access a range of services from the comfort of their home.
K. Sridhar, managing director of LIC, said: "Better servicing alone
can give us new business."

Gaurav Kumar Gupta

BML/01/14

Why LIC is trusted brand of India?

1. As a Govt of India owned Company, LIC is 51 + years old in
the field of life insurance and money management. LIC's Life
Fund size as on day is more than Rs 5 Lakh Thousand
Crores !
2. Any LIC policyholder or the nominee will vouch for the best
claims settlement from LIC. Perhaps, this is the only
institution where you as a policyholder are virtually chased till
such time your claim cheques is handed over to you !
3. LIC has won `NDTV Profit Leadership Award 2007 under
Life Insurance Category', `Outlook Money Award 2007 as
the best Life Insurer', `CNBC Awaaz Consumer Award
2007 as the best Life Insurance Company', `Golden
Peacock Award for excellence in Corporate Governence
2007', `Web 18 Genius of the Web Award 2007 and many
more'.
4. LIC adjudged No.1 Trusted Service Brand for the 4th
successive year by ET Brand Equity Survey.
5. LIC has been adjudged Superbrand India for 2004-06 and
Reader's
Digest
`Trusted
Brand'
Asia
2007.
6. This is the only corporation that is catering to more than 190
million satisfied policyholders in India and abroad.
7. This is one of the very few institutions that pays exgratia interest on pending maturity claims !
8. More than 2050 LIC branches all over India are connected
together to serve you. You can pay your premium anywhere
in the country.
9. During its long existence, LIC has kept on updating its
portfolio by bringing in new plans depending on public
requirement. More than 50 of them are most popular and can
be customized to meet any of your requirements. LIC ULIPs
have become extremely popular due to the returns they offer.
Money Plus- latest LIC Unit Linked Plan is a case in point.
10.
All LIC Plans come with Sovereign Guarantee i.e.,
Govt of India Guarantee regarding repayment. Infact, as
of now, only LIC plans enjoy this Govt Guarantee.
Gaurav Kumar Gupta
BML/01/14

Beneficiary for this Sovereign Guarantee is you and you

alone as the policyholder/ would-be policyholder.
11.
All LIC plans are characterized by low premium, high
life insurance coverage and a vast package of benefits
offered by them. Add to this package, section 80C benefit
and section 10(10D) benefit on the maturity proceeds, you
will find investment on LIC plans one of the most coveted
investment options available to you.
12.
Premium paid under Key-Man Insurance plan is a
recognized business expense under section 37(I) of the
Income-Tax Act. For companies making profits, this is a very
good incentive indeed.
13.
Through Employer-Employee Insurance scheme, you
can recognize the worth of your most valuable employees
whose absence you can ill afford to loose.
14.
Entire contribution to LIC Group Gratuity Scheme is a
recognized business expense in the hands of the employer.
In addition, through this scheme, the employer can transfer
his gratuity liability to the corporation and fund the same
under cash accumulation scheme. The most popular among
all the companies.
15.
LIC is declaring quite an impressive bonus (profits) on
all its with-profits policies every year. Extra attraction under
LIC Bonus is (a) it is calculated every year on the insured
amount and not on the premium paid and (b) entire bonus
received along with insured amount either by you on maturity
of your policy(ies) or by your nominee in your absence during
the currency of your policy(ies) is free from income-tax under
section 10(10D) of the Income-tax Act.
16.
On most of the LIC plans, you can borrow to take care
of your immediate monetary requirements. None of the policy
benefits get affected as a result of borrowal. Infact, policy
loans offer one of the most attractive investment
opportunities.
17.
You can pay your premium 3 years in advance at 5%
discount. Chief attractions of this advance payment of
premium are (a) there is no possibility of your overlooking
your premium payment and getting your policy(ies) lapsed
wherever you are in the world and (b) you will be earning 5%
tax-free interest on the unutilized portion of the amount left
with LIC after apportioning the regular installment.

Gaurav Kumar Gupta

BML/01/14

18.
Most of the LIC plans come with Riders to take care of
Total and Permanent Disablement due to Accident and some
of the most dread diseases that may result in loss of income.
19.
LIC pension plans that guarantee you life pension are
extremely popular. You can park your hard earned money
safely with the corporation and enjoy pension as long as you
are alive.

Due to these reasons and lot more, LIC should be your

obvious choice for all your life insurance requirements.
LIC is Indias most trusted brand, INSURING LIVES AND
ENSURING
SMILES
from
more
than
50
Years.
SUPER BRAND & MOST TRUSTED SERVICE BRAND OF INDIA.
BEST
IT
USER
IN
INDIA
(NASSCOM

2003).
Largest Institutional Investor in India and Second largest in Asia
among
insurers.
(Source:
Asian
Investor)
LIC - An Institution Builder promoting many financial and insurance
institutes like NSE, NCDEX, LIC Mutual Fund, Stock Holding
Corporation of India, National Insurance Academy, Insurance
Institute
of
India
etc.
LIC
is
the
largest
life
insurer
of
India
Asset value as on 31.3.2004: 3,673,598.4 mn (INR).
Offers over 45 plans to cover your life at various stages
Over 160 million customers and 1.1 million agents. It has
underwritten
more
than
160
million
policies.
2,048 branch offices (all computerized) of which 2019 are
networked
From all above we can say our money is safe and secure with
assured returns.

Gaurav Kumar Gupta

BML/01/14

Project Analysis

The Positive side of LIC as well as Negative side of LIC. I

encourage other readers to correct me if I am wrong and also add
light to any point that I may have missed.
First lets talk about the Positive side of LIC
1. LIC is owned by the government and therefore it is the only
company besides the PPF that has the sovereign guarantee of the
govt. of India. It is a different story that today LIC has become so
powerful that the govt. leans on LIC every time that the Stock
Market crashes. Imagine having an Asset base of over Rs 6 Lac
Crore. . Thats a 14 digit number! No company in India can boast
of such figures. Mind boggling.
2. LIC is the only Life Insurance Company making profits. Most of
the Private Insurers including the self proclaimed market leaders
like ICICI and Bajaj Allianz are booking heavy losses. Check IRDA
website in the Annual Report column. The point is that if an
insurance company makes losses year over year, then how will
they manage to pay the Claim amount? Afterall no Insurance
company is here to do charity business.
3. When it comes to paying claims, again LIC is Number One with
the claims settlement ratio of more than 99%. Private Insurers
cannot match LICs ability on claims settlement. Again, please visit
IrDAs website to see the claims settlement performance of various
companies.
4. LIC has the worlds largest sales force, yes over 10 lac agents
and now universities in western countries are trying to study how a
company managed to appoint such a large sales force. A sales
force of over 1 million! Truly a remarkable achievement.
Gaurav Kumar Gupta
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5. Many people argue that LIC has not been able to penetrate the
market as it has insured only 15% of the population. My point is, in
a poor country like India where there are so many people living
below the poverty line, so many people who die of starvation, so
many people who dont have access to basic medication, so many
people who dont have basic necessities of life like food, shelter,
education and clothing. Will such a person first feed his children or
buy Insurance ? Lets not forget that a majority of the Indian
population is poor and a substantial percentage is living below the
poverty line. At a personal level i feel that LIC has done a
satisfactory job of insuring people.

# NOW THE NEGATIVE POINTS OF LIC #

1. The Administrative staff in LIC is in deep slumber. Try writing a
complaint to them and they wont even bother to reply back. If you
ask the Branch Manager for the complaints book, he probably
wont have it in place. If an Agent complains against any staff,
then the Agent is black listed and next time onwards his work is
not done.
2. In order to show a better performance & achieve branch Targets,
Agents are motivated by the Managers to split the policies. This
not only adds to the inconvinience of the policyholders but it
also increases the expenses of LIC. Competitions for Agents are
held with Prizes being offered on the number of policies sold and
not on the number of lives insured. Therefore many Agents are
tempted to split the policies in order to get better prizes. However if
an agent wants the forms or sales literature, most of the time its
out of stock. But surprisingly just a week before any scheme is
about to close, the office is flooded with forms & sales literature.
This is very disturbing.
3, As I earlier said, LIC is lacking in Effective Leadership in recent
times. Managers having designations like Marketing Manager or
Sales Manager donot have the capability to motivate an audience
at a meeting. Yes this is true even in a city like Mumbai. Even the
Senior level managers cannot make effective presentations or
design a sales strategy. Their only mantra at an Agents meeting is
"Friends, bring more policies!. If you ask them how
to bring more policies, they wont know. Its a pity !
Gaurav Kumar Gupta
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4. Though LIC has more than 2000 branches, they are not
systematically located. In Mumbais Fort area, LIC has more than
20 branches within a radius of 1.5kms. Whats the use ? In the
suburbs where most of the people reside, there are no branches at
all. LIC has no branches in Bandra East, Khar East & West,
Santacruz East, Vile Parle East, Andheri West, Jogeshwari West,
Mahim, Matunga, etc. If LIC gives a thought to systematic
relocation of its offices, it will immensly help the policyholders.
5. Even though LIC claims to have taken several initiatives in the
IT sector, policyholders still face problems in revival of their
policies, payment of premium in several branches, change of
mode, change of address, etc. The After-sales policy services
department needs to be revamped. Policyholders feel that LIC
agents are humble while selling a policy and thereafter they fail to
provide any service to the client. The truth is that LIC is so weak in
policy services department, that even a good agent finds it difficult
to get the work done from the administrative staff.
To sum up, i would say that LIC will never cheat a Policyholder in
payment of claim, but at the same time everyone will agree that
LIC is not responsive to the needs of the customer. If you have
purchased an LIC policies then dont forget to pay the premium on
time, and when your policy gets matured LIC will honestly pay your
Maturity amount on time.
The employees are sometimes rude in their behaviour with the
Policyholder. If a claim cheques is handed over by a courteous and
smiling employee of LIC, it will enhance the image of LIC in the
mind of the policyholder.
Today LIC is not just an Insurance Company, LIC is a Movement,
LIC is a Cult, LIC is a Religion. Imagine 10 lac agents and 1
lac employees serving 16 crore policyholders in India. You cannot
deny that LIC has become the way of life in India. Daily you can
hear someone or the other talking of LIC in local trains, at fish
markets, at restaurants, on News Channels, in your own offices,
etc.
As i earlier said, LIC has started lacking in effective leadership. If a
company like LIC starts sponsoring irrelevant awards like Zee Cine
awards which it had done 2 years ago, then it will send the wrong
message in the minds of the policyholders. Imagine Indias most
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famous institution sponsoring a Cine Awards function stating that it

was done to increase the brand awareness of LIC. That sounded
like a big joke. It is time that the top level officials of LIC come out
of their air-conditioned cabins and travel by public transport for
sometime in order to feel the pulse of the common man.

Conclusion

After Findings we can see about LIC features and his The tendency to take
the expedient approach and focus on the far right of the LIC spectrum,
Peacetime Contingency Operations and conduct training as usual, while
briefing that the LIC block has been checked, will lead us to a possibly fatal
false sense of security.
Instinctive behavior and ingrained training must be adjusted to fit 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.
LIC is not conventional warfare. This is critical for the counterinsurgent to
understand. The insurgents violent and coercive strategy is applied so as to
achieve political, civil, military and psychological results. Hence, the
counterinsurgent must counter all of these strategic elements individually. In
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addition, the target of the insurgents violence and coercion is the population.
This is because the population is the centre of gravity in LIC. Therefore the
counterinsurgent must also focus on the population to be successful. In terms
of
military
principles
in
counterinsurgency,
doctrinal
precision,
professionalism, independence, initiative, force precision, restraint, combined
arms, precision engagement, joint force, effective population based
intelligence, integrated communications, a civil affairs approach and high
levels of training are critical.
So we can say that so many merits and Demerits in life insurance
Corporation of India.

BIBLIOGRAPHY
Books
CMIE Database programming with MS Office,
MS office,
Visual vmpro software (Lic)

Important websites
www.google.com
www.licindia.com

Magazine
Yogkshem Lic Magazine
Outlook Express
Business today
Finance & Banking
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 Money Outlook

News Paper
Business standard
Times of India
Economic times
Hindustan times

LIMITATION OF THE
PROJECT

Lic has been so many limitations -----

A.

A Dealer is not required to obtain the sellers identification,

photograph the seller, record the sellers thumbprint, or have the
seller complete the Declaration of Proof of Ownership if the Dealer
complies with the remaining requirements in the Administrative
Rules and if:
1. The item is acquired through consignment by a Dealer from a
person who lives more than 150 miles from the City of Portland and
the consigned property is mailed, shipped, or sent by courier to the
Dealer.
2. The item is acquired during a trade show. All items acquired
during a trade show by a Dealer must be reported. At the time of
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the transaction, the Dealer must write on the transaction report a

complete, legible and accurate description of the regulated property
of sufficient detail to distinguish like objects one from the other. The
Dealer must also record the name and date of the event and the
address of the venue in the name, date, and address fields of the
transaction report form. Items acquired during a trade show may be
sold or traded during the trade show without being held. Items still
in a Dealers possession at the end of the show will be subject to
the hold period requirement in effect for that Dealers acquisitions of
regulated property.
3. The item is acquired from a business whose acquisitions of
regulated property consist exclusively of donated items and/or
purchases from a 501(c)3 organization. The Dealer must record the
name and location address of the business in the name and address
fields of the transaction report form and the date of the acquisition.
4. The item is acquired through an internet transaction. The Dealer
must record on the transaction report the sellers email address or
sellers identification, the name of the internet website that listed
the item, and the date of the acquisition.
5. The item is acquired by the Dealer from a yard sale, garage sale,
estate sale or swap meet. The Dealer must record on the
transaction report the physical address of the sale location and the
date of the acquisition.
Items acquired under Subsection A. must be held in compliance
with the hold period requirement in effect for the Dealers other
acquisitions of regulated property.

B.

A Dealer is not required to obtain the sellers identification,

photograph the seller, record the sellers thumbprint, or have the
seller complete the Declaration of Proof of Ownership if the Dealer
complies with the remaining requirements in the Administrative
Rules and if the item is used, regulated property acquired from a
licensed business. The Dealer must keep a receipt for the item from
the licensed business that includes the licensed business name and
a description of the item. The receipt must be retained at the
Dealers business location for one year or until the item is sold,
whichever is longer. The Dealer must record on the transaction
report the name and location address of the business in the name
and address fields of the transaction report form, and the date of
the acquisition. The item does not have to be held.

C. A Dealer is not required to make a copy of the acceptable

identification obtained from the seller, photograph the seller, or

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record the sellers thumbprint if the Dealer complies with the

following requirements:
1. Conducts each and every acquisition of regulated property by
either:
a. not tendering payment to the seller for a minimum of 15 days
after the regulated property is delivered to the Dealer; or
b. offering in-store credit that must be used for merchandise only
and not redeemed for cash; and
2. Holds each and every item of regulated property for a
minimum of 15 days from the date of acquisition; and
3. Complies with the remaining requirements set forth in the
Administrative Rules; and
4. Notifies the Director and the Chief of Police in writing that
each and every acquisition of regulated property will be conducted
by not tendering payment to the seller for a minimum of 15 days
after the regulated property is delivered to the Dealer.

D.

A Dealer is not required to make a copy of the acceptable

identification obtained from the seller, photograph the seller, or
record the sellers thumbprint when the Dealer acquires an item of
regulated property on consignment if the Dealer complies with the
following requirements:
1. Does not tender payment to the consignor for a minimum of
15 days after the regulated property is delivered to the Dealer;
2. Holds each and every item of consigned regulated property
for a minimum of 15 days;
3. Complies with the remaining requirements in the
Administrative Rules.

So these are the limitation of life insurance Corporation of India.

In every company has so many limitation but LIC has limitation but
It is no -1 and trusty brand of India.
So we can say that LIC is best service provider
and trusty brand of India.

Gaurav Kumar Gupta

BML/01/14

Gaurav Kumar Gupta

BML/01/14