Comparison of Personal

Insurance Policies of LIC with

Private sector Insurance
Company
 A total of 100 persons were surveyed regarding LIC policies in Udupi
and Manipal out of which 3 were found inappropriate.
 The age group were distributed as:-
 Life Insurance Corporation of
Founded in 1956. India
Regarded as the largest life insurance
corporation in India.
It started with 5.6 million policies and today, it
serves about 180 million policies.
LIC also funds 24.6% of the Indian
Governments Expenses.
• Combination of Endowment Assurance and Whole Life
plans.
• Provides financial protection against death throughout
the lifetime assured with the provision of payment of a
lump sum at the end of selected term.
Jeevan Surbhi (Money Back plans)
• Maturity term is more than premium paying term
compared to other money back plans.
• Suitable for people who besides wishing to provide for
their old age and family feel the need for lump sum
benefits at periodical intervals
Jeevan Anurag (Children Plan)
• Specifically designed to take care of the educational
needs of Children generally taken by parents.
• Benefits under the plan are payable at prespecified
durations irrespective of whether the Life Assured survives
to the end of the policy term or dies during the term of the
policy.
One Among the
Many
 14 18

24
44

Less than 10
10 to 15
15 to 20
Life time
 In a tough battle to expand market shares, 14 Private owned life insurance companies in India, lost 3% of their market share to state owned LIC.

As per I.R.D.A, LIC has been able to retain a market share of 74.26% but new private insurance companies like Reliance life and SBI life had

shown a huge growth of over 200% over the years
But still, the fact is that LIC has reduced in terms of share market in the past 5 years from 87.7% in 2003-04 to 73.9% in 2007-08.

Most of the private banks that provide personal insurance, have reached to great premiums due to the Unit Linked Insurance plans (ULIP’s).

 Table showing the premium achieved by LIC and
other private sectors over the past 5 years.
Company FY 03 - 04 FY 04 – 05 FY 05 – 06 FY 06-07 FY 07- 08

Life 63,533 75,127 90,792 1,27,822 1,49,789

Insurance
Corporation

Private 3,120 7,727 15,083 28,253 51,561

Sectors
LIC and Private Sectors
 Table showing the different policies issued by
LIC and Private Insurers

Companie FY 03 - 04 FY 04 – 05 FY 05 – 06 FY 06 -07 FY 07-08

s

Life 2,69,68,0692,39,78,1233,15,90,5153,82,29,2923,76,12,599
Insurance
Corporation

Private 16,58,847 22,33,075 38,71,410 79,22,294 1,32,61,558

Sectors
LIC and Private sector
LIC is a giant sector and that the overall size of LIC is much
more than all private insurance companies. P.C are growing
but are still much behind LIC.
At policies being issued, there is a huge gap. This shows
that LIC is a well established player in the field of Insurance.
The number of branches of private sectors are presently
more than LIC, but, most of the branches are in urban areas
and hence they do not have network like LIC which reaches
the rural areas as well.
LIC being the oldest player in the existing insurance market,
has the biggest market share of 73.9%
Customer base of LIC is very strong and still business per branch,
profit per branch, they are leading much ahead of private insurance
companies even though Private sectors are increasing rapidly due to
their excellent service quality and attractive offers.
Same is the case when it comes to income per branch. LIC is much
ahead of private insurance companies in this field. They are
undoubted champions in insurance when it comes to profit earning.
Thus, its very clear that LIC is the leaders till date regarding the
insurance policy, but still they fear a very tough competition from
private sectors.
 Presented By
Abhishek Pandey
Roshan Ganu
Aswin Kanumarath