SUMMER INTERNSHIP PROJECT REPORT

ON

“COMPARATIVE STUDY ON PRODUCTS AND

POLICIES IN LIFE INSURANCE CORPORATION OF
INDIA”

A report submitted in partial fulfilment of the requirements for the award

of Degree of
MASTER OF BUSINESS ADMINISTRATION

Under the Supervision of Submitted By:

Dr. Ajay Manjhi SHARAF USMAN KHAN
Assistant Professor Roll No. 2310019025337
IMS University of Lucknow MBA 2 Year 3rd Sem.

INSTITUTE OF MANAGEMENT SCIENCE,

UNIVERSITY OF LUCKNOW, UTTAR PRADESH

2023-25
 DECLARATION

I hereby declare that the work presented in this Summer Internship Project entitled
“COMPARATIVE STUDY ON PRODUCTS AND POLICIES IN LIFE INSURANCE
CORPORATION OF INDIA”, was carried out by me. I have not submitted the matter
embodied in this Summer Internship project for the award of any other degree or diploma of
any other University or Institute. I have given due credit to the original authors/sources for all
the words, ideas, diagrams, graphics, computer programs, experiments, results, that are not
my original contribution. I have used quotation marks to identify verbatim sentences and
given credit to the original authors/sources. I affirm that all the data represented in this
project is true & correct to the best of my knowledge & belief. I also declare that this
internship is my own preparation and not copied from anywhere else.

Name: SHARAF USMAN KHAN

Roll. No.: 2310019025337
MBA 3rd Sem. 2nd Year
 ACKNOWLEDGMENT

I would like to express my sincere gratitude to Dr. Ajay Manjhi Sir, who has been my thesis
mentor, for his constant support, priceless advice, and perceptive criticism during this study
project. His knowledge, commitment, and support have been invaluable in determining the
course and calibre of this thesis, and I am incredibly grateful for their guidance.
1 considers me very fortunate to get the opportunity to conduct the training approval and project
assignment by Life Insurance Corporation of India. I got opportunity to get a practical exposure
into actual environment and it provides me the golden opportunity to make my theoretical
concept of Recruitment and selection process in a more clear way.
I am very much thankful to all the officials at Life Insurance Corporation of India for their
cooperation during my training for providing me necessary information without which this
project report would not have been completed.
I have gone through various sites, Research Books, Magazines and Newspapers to get the
accurate information for analysis and tried to find the best conclusion.

Name: SHARAF USMAN KHAN

Roll. No.: 2310019025337
MBA Marketing 3rd Sem. 2nd Year

3
 TABLE OF CONTENT

S.No. Topic page No.

Declaration
Acknowledgment
Table of content
Executive summary
1. CHAPTER-1 INTRODUCTION

2. CHAPTER-2 COMPANY PROFILE

3. CHAPTER-3 RESEARCH METHODOLOGY

4. CHAPTER-4 POLICIES AND PLANS

5. CHAPTER-5 FINDINGS

6. CHAPTER-6 CONCLUSION

7. BIBLIOGRAPHY

4
 EXECUTIVE SUMMARY

Insurance is the most familiar word or phrase used in today’s life. Insurance companies are those
institutes that provide various types of facility and services in term of their plans and policies to
the consumers. The following project has been made on one of the largest company in insurance
sector in India which is owned by government which is “COMPARATIVE STUDY ON
PRODUCTS AND POLICIES IN LIFE INSURANCE CORPORATION OF INDIA”.. The
following project makes an analysis of the products of LIC. The brief summary of each chapter
is discussed as follows:-
Life Insurance Corporation of India (LIC) is India's largest and most trusted life insurance
provider, established in 1956 through the nationalization of 245 private insurers. LIC has since
become a cornerstone of the Indian financial ecosystem, offering a diverse range of insurance
and investment products tailored to the needs of individuals, families, and businesses.
LIC’s vision is to provide financial security to all citizens, ensuring access to affordable
insurance products and promoting the economic welfare of the nation. Its mission emphasizes
customer-centric solutions, innovative products, and ethical business practices.
LIC offers a comprehensive suite of services, including:
Life Insurance Plans: Endowment, term assurance, and whole life policies.
Pension & Retirement Plans: Annuity-based schemes to secure post-retirement income.
Unit-Linked Insurance Plans (ULIPs): Combining investment and insurance benefits.
Health Insurance: Policies catering to medical emergencies and critical illnesses.
Group Insurance: Designed for corporate clients to protect their employees.
LIC holds a dominant market share in the Indian insurance sector, attributed to its extensive
distribution network of agents, branch offices, and digital platforms. Its strong brand equity and
government backing have ensured its continued trust among millions of policyholders.
LIC has consistently demonstrated financial robustness, reflected in its substantial annual
premium income, high claim settlement ratio, and prudent investment practices. As a major
institutional investor, LIC plays a vital role in India's economic development by channeling
funds into infrastructure, government securities, and other priority sectors.

5
LIC actively participates in social welfare initiatives, including education, healthcare, disaster
relief, and community development programs. These efforts reinforce its commitment to the
welfare of society beyond its core business operations.
As the insurance landscape evolves with digitalization, regulatory reforms, and changing
customer expectations, LIC is focused on:
Enhancing its digital infrastructure for seamless customer experiences.
Expanding its product portfolio to cater to emerging needs.
Strengthening its presence in underserved rural and semi-urban markets.
Collaborating with global entities to adopt best practices in insurance.

6
 CHAPTER-1

INTRODUCTION

7
 INSURANCE COMPANIES IN INDIA

In India, Insurance is a national matter, in which life and general insurance is yet a booming
sector with huge possibilities for different global companies, as life insurance premiums account
to 2.3% and general insurance premiums account to 0.65% of India’s GDP. The Indian Insurance
sector has gone through several phases and changes, especially after 1999, when the Govt. of
India opened up the insurance sector for private companies to solicit insurance by passing
Insurance Regulatory and Development Authority (IRDA) Bill, allowing FDI up to 26%. Since
then, the Insurance sector in India is considered as a flourishing market amongst global insurance
companies. However, the largest life insurance company in India is still owned by the
government.

The history of Insurance in India dates back to 1818, when Oriental Life Insurance Company
was established by Europeans in Kolkata to cater to their requirements. Nevertheless, there was
discrimination among the life of foreigners and Indians, as higher premiums were charged from
the latter. In 1870, Indians took a sigh of relief when Bombay Mutual Life Assurance Society,
the first Indian insurance company covered Indian lives at normal rates. Onset of the 20th century
brought a drastic change in the Insurance sector.

In 1912, the Govt. of India passed two acts - the Life Insurance Companies Act, and the
Provident Fund Act - to regulate the insurance business. National Insurance Company Ltd,
founded in 1906, is the oldest existing insurance company in India. Earlier, the Insurance sector
had only two state insurers - Life Insurers i.e. Life Insurance Corporation of India (LIC), and
General Insurers i.e. General Insurance Corporation of India (GIC). In December 2000, these
subsidiaries were de-linked from parent company and were declared independent insurance
companies: Oriental Insurance Company Limited, New India Assurance Company Limited,
National Insurance Company Limited and United India Insurance Company Limited.

8
With an annual growth rate of 15-20% and the largest number of life insurance policies in forces,
the potential of Indian insurance industry is huge. Total value of the Indian insurance market
(2004-05) is estimated at Rs. 450 billion (US$10 billion).

The life insurance industry in India grew by an impressive 36%, with premium income from new
business at Rs. 253.43 billion during the fiscal year 2004-2005 braving stiff competition from
private insurers. This report, Indian Insurance Industry: New Avenues for Growth 2012", finds
that the market share of the state behemoth, LIC, has clocked 21.87% growth in business at
Rs.197.86 billion by selling 2.4 billion new policies in 2004-05. But this was still not enough
to arrest the fall in its market share, as private players grew by 129% to mop up Rs. 55.57 billion
in 2004-05 from Rs. 24.29 billion in 2003-04.Though the total volume of LIC's business
increased in the fiscal year (2004-2005) compared to the previous one, its market share came
down from 87.04 to 78.07%.The 14 private insurers increased their market share from about
13% to about 22% in a year's time. The figures for the first two months of the fiscal year 2005-
06 also speak of the growing share of the private insurers. The share of LIC for this period has
further come down to 75 percent, while the private players have grabbed over 24 percent.
There are presently 12 general insurance companies with four public sector companies and eight
private insurers and private insurance companies collectively have a 10% share of the non-life
insurance market.

9
 CHAPTER-2

COMPANY PROFILE

10
 COMPANY PROFILE

The story of insurance is probably as old as the story of mankind. The same instinct
that prompts modern businessmen today to secure themselves against loss anddisaster existed in
primitive men also. They too sought to avert the evil consequences of fire and flood and loss of
life and were willing to make some sort of sacrifice in order to achieve security. Though the
concept of insurance is largely a development of the recent past, particularly after the industrial
era – past few centuries – yet its beginnings date back almost 6000 years. Life Insurance in its
modern form came to India from England in the year 1818.Oriental Life Insurance Company
started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the
insurance companies established during that period were brought up with the purpose of looking
after the needs of European community and Indian natives were not being insured by these
companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the
foreign life insurance companies started insuring Indian lives. But Indian lives were being treated
as sub-standards
lives and heavy extra premiums were being charged on them.Bombay Mutual Life Assuran
ce Society heralded the birth of first Indian lifeinsurance company in the year 1870, and covered
Indian lives at normal rates.Starting as Indian enterprise with highly patriotic motives, insurance
companies came into existence to carry the message of insurance and social security through
insurance to various sectors of society. Bharat Insurance Company (1896) was also one of such
companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to more
insurance companies. The United India in Madras, National Indian and
National Insurance in Calcutta and the Co-operative Assurance at Lahore were established in
1906. In 1907, Hindustan Co-operative Insurance Company took its birth in one of the rooms of
the Jorasanko, house of the great poet RabindranathTagore, in Calcutta. The Indian Mercantile,
General Assurance and Swadeshi Life (later Bombay Life) were some of the companies
established during the same period. Prior to 1912 India had no legislation to regulate insurance
business. In the year 1912, the Life Insurance Companies Act, 1912 made it necessary that the
premium rate tables and periodical valuations of companies should be certifies by an actuary.

11
But the Act discriminated between foreign and Indian companies on many accounts, putting the
Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business. From 44
companies with total business-in-force as Rs.22.44 crore, it raised to 176 companies with total
business-in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies
many financially unsound concerns were also floated which failed miserably. The Insurance Act
1938 was the first legislation governing not only life insurance but also non-life insurance to
provide strict state control over insurance business. The demand for nationalization of life
insurance industry was made repeatedly in the past but it gathered momentum in 1944 when a
bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly. However,
it was much later on the 19th of January, 1956, that life insurance in India was nationalized.
About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were
operating in India at the time of nationalization. Nationalization was accomplished two stages;
initially the management of the companies was taken over by means of an Ordinance, and later,
the ownership too by means of a comprehensive bill. The Parliament of India passed the Life
Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India
was created on 1st September, 1956, with the objective of spreading life insurance much more
widely and in particular to the rural areas with a view to reach all insurable persons in
the country, providing them adequate financial cover at a reasonable cost.
LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from
itscorporate office in the year 1956. Since life insurance contracts are long termcontracts and
during the currency of the policy it requires a variety of services need was felt in the later years
to expand the operations and place a branch office at each district headquarter. Re-organization
of LIC took place and large numbers of new branch offices were opened. As a result of re-
organization servicing functions were transferred to the branches, and branches were made
accounting units. It worked wonders with the performance of the corporation. It may be seen that
from about200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores only in
the year 1969-70, and it took another 10 years for LIC to cross 2000.00 crore mark of new
business. But with re-organization happening in the early eighties, by 1985-86LIC had already
crossed 7000.00 crore Sum Assured on new policies.

12
Today LIC functions with 2048 fully computerized branch offices, 100 divisional offices, 7
zonal offices and the corporate office. LIC’s Wide Area Network covers100 divisional offices
and connects all the branches through a Metro Area Network.LIC has tied up with some Banks
and Service providers to offer on-line premium collection facility in selected cities. LIC’s ECS
and ATM premium payment facility is an addition to customer convenience. Apart from on-line
Kiosks and IVRS, InfoCenters have been commissioned at Mumbai, Ahmadabad, Bangalore,
Chennai,Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing
easy access to its policyholders, LIC has launched its SATELLITESAMPARK offices. The satel
lite offices are smaller, leaner and closer to thecustomer. The digitalized records of the satellite o
ffices will facilitate anywhereservicing and many other conveniences in the future.LIC continues
to be the dominant life insurer even in the liberalized scenario of Indian insurance and is moving
fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore
policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies
by 15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the
previous year. From then to now, LIC has crossed many milestones and has set
unprecedented performance records in various aspects of life insurance business. The same
motives which inspired our forefathers to bring insurance into existence in this country inspire us
at LIC to take this message of protection to light the lamps of security in as many homes as
possible and to help the people in providing security to their families.
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.

13
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 nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a
capital contribution of Rs. 5 crore from the Government of India.

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.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of
general insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of
conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins
and the Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalization) Act, 1972 nationalized the general
insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies’ viz. the NationalInsurance Compan
y Ltd., the New India Assurance Company Ltd.,
the OrientalInsurance Company Ltd. and the United India Insurance Company Ltd.GICincorpora
ted as a company.

14
LIC SUBSIDIARIES

Unlike provisions for private players in the insurance sector, the LIC Act provides for setting up
subsidiaries through policy holders fund. It is due to the LIC act that LIC of India has a number
of subsidiaries which help it in leveraging its potential to the maximum, providing an enhanced
set of diversified services to its customer’s .These subsidiaries include LIC International,
LIC Nepal, LIC Lanka, LIC Housing Finance and LIC Mutual Fund.

LIC INERNATIONAL
This is a joint venture offshore company promoted by LIC which commencedoperations in July,
1989 with the objectives of offering US$ denominated 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.

LIC HOUSING FINANCE LTD.

The Company is recognized by National Housing Bank and listed on the National Stock
Exchange (NSE) & Bombay Stock Exchange Limited (BSE). LIC Housing Finance Ltd. is one
of the largest Housing Finance Company in India. Incorporated on 19th June 1989 under the
Companies Act, 1956, the company was promoted by LIC of India and went public in the year
1994. Its main objective is to provide long term finance for construction or purchase of houses or
apartments. It has a Dubai office.

LIC MUTUL FUND LTD.

15
Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989 and contributed
Rs. 2 Crores towards the corpus of the Fund. LIC Mutual Fund was constituted as a Trust in
accordance with the provisions of the Indian Trust Act, 1882.

There are some other subsidiaries of LIC which are

1. LIC Mutual Fund Asset Management Company Ltd.

2. LIC HFL Care Homes Ltd.
3. LICHFL Asset Management Company Private Limited.
4. LICHFL Trustee Company Private Limited.
5. LICHFL Financial Services Limited, etc.
1. LIC was established on September 1st 1956 under an
2. Act passed by the Parliament as a wholly owned
3. Corporation of Govt. of India with a capital of 5 crores.
• Life Insurance Corporation of India is an Indian
4. multinational central public sector life insurance
5. company headquartered in Mumbai.
• It is India's largest insurance company as well as the
6. largest institutional investor with total assets under
7. management worth ₹ 52.52 trillion as of March 2024.

16
 WHAT IS LIFE INSURANCE?

Life insurance is a contract that pledges payment of an amount to the person assured (or his
nominee) on the happening of the event insured against. The contract is valid for payment of the
insured amount during:
•The date of maturity, or
•Specified dates at periodic intervals, or
•Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the
Corporation by the policyholder. Life insurance is universally acknowledged to be an institution,
which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the
family in the unfortunate event of death of the bread winner.

By and large, life insurance is civilization’s partial solution to the problems caused by death. Life
insurance, in short, is concerned with two hazards that stand across the life-path of every person:
1. That of dying prematurely leaves a dependent family to fend for itself.
2. That of living till old age without visible means of support.

Life Insurance Vs. Other Savings

Contract of Insurance:
A contract of insurance is a contract of utmost good faith technically known as uberrima fides.
The doctrine of disclosing all material facts is embodied in this important principle, which
applies to all forms of insurance. At the time of taking a policy, policyholder should ensure that
all questions in the proposal form are correctly answered. Any misrepresentation, non-disclosure
or fraud in any document leading to the acceptance of the risk would render the insurance
contract null and void.

17
Protection:
Savings through life insurance guarantee full protection against risk of death of the saver. Also,
in case of demise, life insurance assures payment of the entire amount assured (with bonuses
wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is
payable.

Aid to Thrift:
Life insurance encourages 'thrift'. It allows long-term savings since payments can be made
effortlessly because of the 'easy installment' facility built into the scheme. (Premium payment for
insurance is monthly, quarterly, half yearly or yearly). For example:
The Salary Saving Scheme popularly known as SSS provides convenient method of paying
premium each month by deduction from one's salary. In this case the employer directly pays the
deducted premium to LIC. The Salary Saving Scheme is ideal for any institution or
establishment subject to specified terms and conditions.

Liquidity:
In case of insurance, it is easy to acquire loans on the sole security of any policy that has
acquired loan value. Besides, a life insurance policy is also generally accepted as security, even
for a commercial loan.

Tax Relief:
Life Insurance is the best way to enjoy tax deductions on income tax and wealth tax. This is
available for amounts paid by way of premium for life insurance subject to income tax rates in
force. Assesses can also avail of provisions in the law for tax relief. In such cases the assured in
effect pays a lower premium for insurance than otherwise.

Money When You Need It:

A policy that has a suitable insurance plan or a combination of different plans can be effectively
used to meet certain monetary needs that may arise from time-to-time. Children's education,

18
start-in-life or marriage provision or even periodical needs for cash over a stretch of time can be
less stressful with the help of these policies.

Alternatively, policy money can be made available at the time of one's retirement from service
and used for any specific purpose, such as, purchase of a house or for other investments. Also,
loans are granted to policyholders for house building or for purchase of flats (subject to certain
conditions).

Who Can Buy A Policy?

Any person who has attained majority and is eligible to enter into a valid contract can insure
himself/herself and those in whom he/she has insurable interest. Policies can also be taken,
subject to certain conditions, on the life of one's spouse or children. While underwriting
proposals, certain factors such as the policyholder’s state of health, the proponent's income and
other relevant factors are considered by the Corporation.

Insurance for Women

Prior to nationalization (1956), many private insurance companies would offer insurance to
female lives with some extra premium or on restrictive conditions. However, after
nationalization of life insurance, the terms under which life insurance is granted to
female lives have been reviewed from time-to-time. At present, women who work and earn an
income are treated at par with men. In other cases, a restrictive clause is imposed, only if
the age of the female is up to 30 years and if she does not have an income attracting Income
Tax.

Medical and Non-Medical Schemes

Life insurance is normally offered after a medical examination of the life to be assured.
However, to facilitate greater spread of insurance and also to avoid in convience, LIC has been
extending insurance cover without any medical examination, subject to certain conditions.

With Profit and Without Profit Plans

19
An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if any,
after periodical valuations are allotted to the policy and are payable along with the contracted
amount.

In 'without' profit plan the contracted amount is paid without any addition. The premium rate
charged for a 'with' profit policy is therefore higher than for a 'without' profit policy.

Keyman Insurance
Keyman insurance is taken by a business firm on the life of key employee(s) to protect the firm
against financial losses, which may occur due to the premature demise of the Keyman

20
 OBJECTIVES OF LIC

• Spread Life Insurance widely and in particular to the rural areas and to the socially and
economically backward classes with a view to reaching all insurable persons in the country
and providing them adequate financial cover against death at a reasonable cost.

• Maximize mobilization of people's savings by making insurance-linkedsavings 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 collectivecapacities.

• 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 Corporation a sense of participation, pride and
job satisfaction through discharge of their duties with dedication towards achievement of
Corporate Objective.

21
 MISSION/VISSION

MISSION

"Explore and enhance the quality of life of people through financial security by providing
products and services of aspired attributes with competitive returns, and by rendering resources
for economic development."

VISSION

"A trans-nationally competitive financial conglomerate of significance to societies and Pride of

India."

22
 BOARD OF DIRECTORS

Members on the Board of the Corporation

Chief Executive Officer & Managing Director:

 Shri. Siddhartha Mohanty

Government Nominee Director:

 Dr. M.P. Tangirala

Managing Directors:

 Shri. M. Jagannath
 Shri. Tablesh Pandey
 Shri. Sat Pal Bhanoo
 Shri. R. Doraiswamy

Independent Directors:

 Smt. Anjuly Chib Duggal

 Dr. Ranjan Sharma
 Shri. Vinod Kumar Verma
 Prof. Anil Kumar
 Shri. Gurumoorthy Mahalingam
 Shri. Raj Kamal
 Dr. V. S. Parthasarathy
 Shri. M.P. Vijay Kumar

23
AWARDS AND ACHIEVEMENTS

24
25
26
 CHAPTER-3
RESEARCH
METHODOLOGY

27
PURPOSE OF THE STUDY

The purpose behind the study of LIFE INSURANCE CORPORATION OF INDIA is to

understand the companies’ background as well as the nature of the various products offered over
many years in India. Purpose is to study the products and their benefits to customers. This gives
a brief idea of products of the company.

OBJECTIVES OF THE STUDY

The objectives behind the study of the plans and policies of LIFE INSURANCE
CORPORATION OF INDIA are:
1. To impart knowledge about the history and objectives of the company and also its different
subsidiaries.
2. To aware the readers about the different plans and policies provided by LIC, the revalue and
benefits to its customers
METHODOLOGY

DATA COLLECTION:

All the information provided on LIFE INSURANCE CORPORATION OF INDIA in the project
report has been collected through secondary resources. No survey has been conducted to
collect information for the study. Therefore only secondary data issued in the study.

STATICALLY TOOLS:

Secondary resources used in the study for information collection is internet and magazines.
Magazines & websites have been used and the information retrieved from these sources is then
gathered in this project. Other tools used in the study which are used in the preparation of the
project after collecting information are:
 MS Word
 MS Excel

28
LIMITATION OF THE STUDY

 Since the study was undertaken for a short period so time was the biggest constraint.
 Since subject taken is vast so there are always possibilities that something mayn’t be
forgotten to be mentioned.
 Data collected may not be 100 % reliable and accurate or dependable, since the data
collection source was secondary.

29
CHAPTER-4

POLICIES

30
 POLICIES (SCHEMES)

1. Endowment Plans

These are savings-oriented insurance policies that offer both protection and a lump sum amount
upon maturity or in case of death during the policy term.

 LIC's New Endowment Plan

 LIC's Jeevan Labh
 LIC's Single Premium Endowment Plan
 LIC's Jeevan Lakshya

2. Whole Life Plans

Whole life policies provide coverage for the entire lifetime of the policyholder and ensure
financial security for their dependents.

 LIC's Jeevan Umang

 LIC's Jeevan Anand

31
3. Term insurance Plans

Term insurance plans are pure risk covers that provide financial protection to the insured’s
family in case of an untimely demise.

 LIC's New Tech-Term

 LIC's Term Plan

4. Money Back Plans

32
These plans offer periodic returns during the policy term and a lump sum upon maturity, along
with death benefits.

 LIC's New Money Back Plan (20 Years & 25 Years)

 LIC's Jeevan Shiromani
 LIC's Bima Shree

5. Pension and Annuity Plans

Pension plans ensure regular income after retirement, ensuring financial independence during old
age.

 LIC's Jeevan Akshay VII (Immediate Annuity Plan)

 LIC's New Jeevan Shanti (Deferred Annuity Plan)
 Pradhan Mantri Vaya Vandana Yojana (PMVVY)

33
6. Unit Linked Insurance Plans (ULIPs)

ULIPs provide both investment and insurance benefits. The premium is invested in various funds
like equity, debt, or balanced funds.

 LIC’s Nivesh Plus

 LIC's SIIP (Systematic Investment Insurance Plan)

7. Health Insurance Plans

These plans offer coverage for medical emergencies, ensuring peace of mind during health
crises.

 LIC's Jeevan Arogya

 Arogya Rakshak

34
9. Group Insurance Plans

These plans provide insurance coverage to groups like employees of an organization or members
of an association.

 LIC's New Group Superannuation Cash Accumulation Plan

 LIC's Group Credit Life Insurance
 LIC's Group Term Insurance Schemes

10. Children’s Plans

These policies focus on securing the financial future of children, including education and
marriage expenses.

 LIC’s New Children’s Money Back Plan

 LIC's Jeevan Tarun

11. Special Schemes

 Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): Affordable life insurance for
weaker sections.
 Aam Aadmi Bima Yojana (AABY): Social security insurance scheme.

35
Why Choose LIC Plans?

LIC’s plans are backed by decades of trust, reliability, and customer-centric service. Here are
some key reasons to choose LIC:

1. Wide Range of Options: LIC offers plans to suit various needs, including protection,
savings, investment, and retirement.
2. Customizable Plans: Many plans come with optional riders and features, allowing
policyholders to customize coverage as per their requirements.
3. Strong Claim Settlement Ratio: LIC’s high claim settlement ratio reflects its
commitment to honoring claims promptly, ensuring peace of mind for policyholders.
4. Government Backing: As a government-owned entity, LIC enjoys unparalleled trust and
credibility in the insurance sector.
5. Bonuses: LIC policies often include bonuses declared annually, enhancing returns for
policyholders.

What other benefits do I receive during the specified duration of the policy?

36
  For a term of 9 years: The policy holder will receive 15% of the sum assured at the end
of every 3rd and 6th policy year.
 For a term 12 years: The policy holder will receive 15% of the sum assured at the end of
every 3rd, 6th and 9th policy year.
 For a term 15 years: The policy holder will receive15% of the sum assured at the end of
every 3rd, 6th, 9th and 12th policy year.

What additional benefits do I get upon maturity?

If the policy holder outlives the duration of the policy, at the time of maturity,
asingle premium payment (excluding extra premium) is made along with loyalty
additions, if any.

How much insurance do I get?

The policy holder is insured for an amount equal to the sum assured.

What about the installment received already?

The insurance cover is irrespective of the installments received.

When am I eligible for the guaranteed surrender value?

The guaranteed surrender value is available only after completion of at least one policy year.
This value is equal to 90 % of the single premium paid (excluding extra premium).

37
What other benefits does this insurance cover offer?
Bima Bachat is the only money-back policy that offers a loan facility. The rate of interest for this
will be determined from time to time by the corporation. Presently the rate of interest is 9% p.a.
payable half-yearly.It also offers other benefits like the 15 day cooling off period, grace period
and revival.

Who is eligible for the policy? Are there other conditions or restrictions?
The following are the requirements that one needs to be aware of before applying for this policy:
· The person applying for the policy should have completed 15 years and should not be older
than 66 years.
· The policy will mature when the person is 75 years old.
· There is a choice of three terms to choose from (9, 12 and 15 years) for the policy depending on
the age and requirement of the applicant.
· The minimum sum that needs to be assured is Rs 20,000/- and there is no limit on the amount
that can be assured.
· It is important to note that the sum assured should be in multiples of Rs 5000/- only.
· The policy requires the holder to pay a single premium.

Premium payment

Single Premium
The sample premium rates are as under: -

Age Annual Premium per 1000 SA

9 12 15
15 716.40 771.3 804.00
20 717.20 771.8 804.40

38
25 717.55 772.2 804.95
30 718.45 773.3 806.10
35 721.05 775.7 808.55
40 725.80 780.25 812.9
45 734.10 787.60 819.60
50 746.60 797.90 828.95
55 762.65 811.95 841.75
60 784.80 831.30 859.35
65 816.2 - -
What incentives do I get for a higher sum assured?

Let’s take an example of a 30 year old with a Bima Bachat policy for 12 years. If these assured is
Rs 45,000 then he has to pay a premium of Rs 34800.75. But for a sum assured amount of Rs
50,000 he will have to pay a premium of Rs 36734.13only, thus getting a 5% rebate in premium.
Refer to the table below for other rebate percentages.

Less than Rs. 50,000 NIL

Rs. 50,000 and Less 5%
than Rs.1lakh
Rs. 1 lakh and Less 7%
than Rs.2lakh
Rs. 2 lakh and above 8%

4. The Convertible Term Assurance Policy

39
Features
This plan of assurance is designed to meet the needs of those who are initially unable to pay the
larger premium required for a Whole Life or Endowment
AssurancePolicy, but hope to be able to pay for such a policy in the near future.This plan
would be found useful also in cases where it is desired to leave the final decision as to the plan to
a later date when, perhaps a better choice could be made. Policy holders get an option of
converting an policy into endowment assurance or limited payment whole life assurance.

Suitable For:
For all people with earned income under Category I and unearned incomes under Category II,
basically Standard and sub-Standard lives attracting EMR classes I and II.

Benefits
Survival Benefit
Not Applicable
Death Benefit
The sum assured is payable only in the event of death of the Life Assured before the expiry of
the specified term.

Plan parameters
Minimum Maximum
Entry age 20 (nearer birthday) 50
Sum assured (Rs.) 50,000 1,00,00,000
Term (years 5 7

Mode of Payment Maximum premium paying period Policy loan

available

40
Yearly, Half- 55 years No
yearly,
Quarterly, Monthly,
Salary Saving
Scheme

PENSION PLANS

1. New Jeevan Dhara-I

Features

Product summary:
These are Deferred Annuity plans that allow the policyholder to make provision for regular
income after the selected term.

Premiums:
Premiums are payable yearly, half-yearly, quarterly, monthly or through Salarydeduction, as
opted by you, throughout the term of the policy or till earlier death .Alternatively, the premium
may be paid in one lump sum (single premium).

Tax Benefits:
Tax relief under Section 80ccc is available on premiums paid under New Jeevan Suraksha I
(Table No.147). The premiums paid under New Jeevan Dhara I (Table No.148) qualify for tax
relief under Section 88.

Bonuses:

41
These are with-profit plans and participate in the profits of the Corporation’s annuity / pension
business. Policies get a share of the profits in the form of bonuses. Simple Reversionary Bonuses
are declared per thousand Sum Assured annually at the end of each financial year. Once
declared, they form part of the guaranteed benefits of the plan. Final (Additional) Bonuses may
also be payable provided policy has run for ascertain minimum period.

Benefits

Death Benefit:
On death of the Life Assured during the term of the policy the basic premiums paid, excluding
any rider premiums or extra premiums, up to the date of death accumulated with interest at such
rates as decided by the Corporation will be payable to the nominee. Currently, the interest rate is
3%, 4% or 5 % if the death occurs within the first 10 years, 20 years or thereafter respectively.

Maturity Benefit:
At maturity the policyholder can encash up to a maximum 25% of the maturity proceeds as a tax-
free lump sum. The balance should be compulsorily converted to an annuity at the rates
applicable at the time of maturity of the policy. The policyholder has the choice of opting for any
one of 5 annuity options. The annuity options available are:
(i) annuity payable for remainder of life
(ii) annuity payable for life with guaranteed period of 5, 10, 15 or 20 years
(iii) Joint life and last survivor annuity to the annuitant and his/ her spouse under which
annuity payable to the spouse on death of the purchaser will be 50% of that payable to
the annuitant
(iv) Life annuity with a return of purchase price on death of the annuitant
(v) Life annuity increasing at a simple rate of 3% per annum

Supplementary/Extra Benefits:
These are the optional benefits that can be added to your basic plan for
extra protection/option. An additional premium is required to be paid for these benefits.

42
Surrender Value:
Buying a life insurance contract is a long-term commitment. However,
surrender value is available on the plan on earlier termination of the contract.

Guaranteed Surrender Value:

The policy may be surrendered after it has been in force for 2 years or more
but before the vesting date. The guaranteed surrender value is 90% of the basic premiums
paid excluding the first year’s premium. In case of a single premium policy the guaranteed
surrender value is allowed after 2 years from the date of commencement of the policy.

Corporation’s policy on surrenders:

In practice, the company will pay a Special Surrender Value – which is equal to
or higher than the Guaranteed Surrender Value. The benefit payable on surrender reflects the
discounted value of the reduced claim amount that would be payable on death or at maturity.
This value will depend on the duration for which premiums have been paid and the policy
duration at the date of surrender. In some circumstances, in case of early termination of the
policy, the surrender value payable may be less than the total premium paid.

Features

Bima Nivesh 2005 is a plan with compound rate of guaranteed additions and loyalty additions.
This is the revised version of our popular Bima Nivesh Plan 2004 and is introduced to meet the
overwhelming demand for a single premium plan from our customers. It is a single premium,
ideal investment plan for those who have no regular income but good periodical income. Bima
Nivesh 2005 is available for terms5 and 10 years. The guaranteed surrender value is payable
after the policy has run for at least one year. Term Assurance Rider is also available by payment
of a single premium at the option of the proposer.

Benefits
43
Guaranteed Additions:Guaranteed additions at the compound rate of Rs.50 per thousand Sum
Assured per annum for the policy with term of 5 years and at the compound rate of Rs.55 per
thousand Sum Assured per annum for the policy with term of 10 years.
Loyalty Addition: Depending upon the Corporation's experience with regard to mortality,
interest and expenses and based on term of the policy, Loyalty addition, if any, may be declared
by the corporation and paid on maturity.
Maturity Benefit: The Basic Sum Assured along with compounded Guaranteed Additions will
be payable. Loyalty addition, if any, will also be added to this benefit.
Payment on death: In case of the unfortunate death of the Life Assured during the term of
the policy, Sum Assured along with the accrued guaranteed additions will be payable.
Surrender Value: Surrender value is payable after the policy has run at least for one year.
Riders: Term Assurance rider is available.

Eligibility conditions and other restrictions

For the Main Plan Term Assurance Option

Min. Age at entry 13 18 years completed
years completed
Max. Age at entry 70 years 50 years
Max. Maturity Age 75 years 60 years
Policy Term 5 yrs. and 10 yrs Same as main plan
Sum Assured Rs.25, Min. Sum Assured - Rs.1, 00,000/-
000.Maximum – Max. Sum Assured - An amount up
No limit. to the basic Sum Assured for Term
Assurance subject to a maximum
of Rs.25 lakh overall Option limit,
under all policies of the lifeassured.

Premium Rates:

44
Single Premium rates for Rs.1000 Sum Assured are Rs.995 for 5 years term and Rs.976 for 10
years term; The Term Rider Premium depends on the age nearer birthday and the term of
the policy.

REBATES
1% of basic premium on the premium in excess of Rs.50,000.Rs.500 plus 1.5% of basic premium
on the premium in excess of Rs.1,00,000.

LOAN
Loan will be available to the policyholders under this plan within the Surrender Value.

GROUP SCHEME
1. Group Term Insurance Scheme
A) Nature of the Scheme:
Group (term) Insurance Scheme is meant to provide life insurance protection to groups of
people. Administration of the scheme is on group basis and cost is low. Under Group (Term)
Insurance Scheme, life insurance cover is allowed to all the members of a group subject to some
simple insurability conditions without insisting upon any medical evidence. Scheme offers
covers only on death and there is no maturity value at the end of the term.

B) Premium Chargeable:
Group (Term) Insurance Scheme is at present offered under One Year Renewable Group term
assurance plan (OYRGTA). Every year on Annual Renewal date LIC charges the premium
depending upon the changes in size and age distribution of the age group.

C) Different Schemes:
Group (term) Insurance Scheme has a number of varieties. The Scheme may provide for a
uniform cover to all members of the group or graded covers for different categories of members,
cover for all amounts of outstanding housing loans or vehicle advances, or some other benefits

45
(e.g., life cover to supplement pension or PF benefits in case of death). The schemes may have
add-ons like Double Accident Benefit, Critical Illness Benefit, Disability benefit etc.

D) General Features of various Group Insurance Schemes:

1. PREMIUM:
The premium under such scheme may be wholly paid by the employer or the
NodalAgency. However, the scheme may be contributory i.e. the members may alsocontribute.

2. DOUBLE ACCIDENT BENEFIT:

Double Accident Benefit, i.e. payment of double the sum assured on death due
toaccident (without permanent disability benefit), may be allowed under GroupInsurance
Schemes for an extra premium.

3. ELIGIBILITY:
For Group Insurance Scheme in lieu of EDLIS the insurability condition is that should be a
member of the Provident Fund Scheme of the employer. For other GI Schemes of employer-
employee groups the insurability condition is that the member should not be absent on ground of
sickness on the entry date. For all non-employer-employee Group Schemes the basic insurability
condition is that the member should be in good health on the date of entry.

4. ADMINISTRATION OF THE SCHEME:

At the commencement and thereafter on each Annual Renewal Date, the Group Policy holder
will have to send the entire member's data (and particulars of the new entrants from time to time)
to the P & GS unit of LIC. Detailed OYRGTA premium calculation will be made on each
Annual Renewal Date.

2. Janashree Bima Yojana (JBY)

Features
The objective of the scheme is to provide life insurance protection to the rural andurban poor
persons below poverty line and marginally above the poverty line.

46
ELIGIBILITY:
A person who is*Aged between 18 and 59 years.*below or marginally above poverty line*A
member of any of the approved vocation/occupation groups

NODAL AGENCY:
A State Government Department which is concerned with the welfare of any such
vocation/occupation group, a Welfare Fund/ Society, Village Panchayat,NGO,Self-Help Group,
etc.
MINIMUM MEMBERSHIP SIZE:
Twenty five.

FORMS FOR JANASHREE BIMA YOJANA

1. Claim form & discharge receipt under JBY (Annexure A)
2. Application for scholarship under Shiksha Sahayog Yojana (Performa A)
3. List of students eligible for scholarship under Shiksha Sahayog Yojana (Performa D)
4. Certificate of utilization (Performa C)

Benefits
In the events of *Death (other than by accident) of the member, an amount of Rs.30, 000/- is
payable.*death/total permanent disability, due to accident, an amount of Rs.75, 000/-
is payable.*Permanent partial disability, due to accident, an amount of Rs.37,500/- is payable.

PREMIUM:
*The premium under the scheme is Rs.200/-per annum per member. *50% of the premium i.e.
Rs.100/- will be contributed by the member and/or Nodal Agency/State Government.*Balance
50% will be borne by the Social Security Fund.
APPROVED VOCATION & OCCUPATIONAL GROUPS:
A) The group that can be covered are like workers in-
(i) Foodstuffs like khandsari

47
 (ii) Textile
(iii) Manufacture of wood products
(iv) Manufacture of paper products
(v) Manufacture of leather products
(vi) Printing (vii) Rubber and coal products
(viii) Chemical products like candle manufacture
(ix) Mineral products like earthen toys manufacture
(x) Fire cracker's workers
(xi)Construction workers
(xii)Other related cottage industries to be identified by Nodal Agencies and other groups as
identified by the Nodal Agency and approved by LIC.

B) The occupational groups are:

Beedi workers, Brick Kiln Workers(Jalandhar),Carpenters, Cobblers, Fisherman,Hamals,
Handicraft Artisans, Handloom Weavers, Handloom and Khadi Weavers, Lady Tailors, Leather
and Tannery Workers, Papad Workers attached to 'SEWA',Physically Handicapped self-
Employed Persons, Primary Milk Producers, Rickshaw
Pullers/ Auto Drivers, Safai Karmacharis, Salt Growers, Tendu Leaf Collectors,Scheme for the
Urban Poor, Forest Workers, Sericulture, Toddy Tappers, Power loom Workers, Scheme for
Women in Remote Rural Hilly Areas.
PLAN’S NAV
The net asset value of different schemes of life insurance Corporation of India for the insured’s is
as follows:
NAV TABLE
NAV'S AS ON DATE 21.08.2009 EFFECTIVE FOR 21.08.2009

BASIC NAV AS ON REPURCHASE SALEVALUE

UNIT DATE VALUE
VALUE
DATE OF

48
BIMA PLUS (140 LAUNCH
02.02.2001
SECURED FUND 10 27.1060 25.7507 27.1060
BALANCED FUND 10 32.4856 30.8613 32.4856
RISK FUND 10 44.2874 42.0730 44.2874
FUTURE PLUS (172) DATE OF
LAUNCH
04.03.2005
BOND FUND 10 13.1779 13.1779 13.1779
INCOME FUND 10 15.0405 15.0405 15.0405

BALANCED FUND 10 15.6018 15.6018 15.6018

GROWTH FUND 10 19.5666 19.5666 19.5666

JEEVAN PLUS(173) DATE OF
LAUNCH
18.10.2005
BOND FUND 10 13.1729 13.1729 13.1729
SECURED FUND 10 13.3119 13.3119 13.3119
BALANCED FUND 10 13.6167 13.6167 13.6167
GROWTH FUND 10 18.1556 18.1556 18.1556
MONEY PLUS (180) DATE OF
LAUNCH
20.12.2006
BOND FUND 10 12.4484 12.4484 12.4484
SECURED FUND 10 11.8804 11.8804 11.8804
BALANCED FUND 10 11.6570 11.6570 11.6570

49
GROWTH FUND 10 10.3939 10.3939 10.3939
MARKET PLUS (181) DATE OF
LAUNCH
05.07.2006
BOND FUND 10 13.6993 13.6993 13.6993
SECURED FUND 10 12.8744 12.8744 12.8744
BALANCED FUND 10 12.5608 12.5608 12.5608
GROWTH FUND 10 12.9723 12.9723 12.9723
FORTUNE PLUS (187) DATE OF
LAUNCH
23.08.2007
BOND FUND 10 12.0380 12.0380 12.0380
SECURED FUND 10 11.2592 11.2592 11.2592
BALANCED FUND 10 10.6514 10.6514 10.6514
GROWTH FUND 10 10.1676 10.1676 10.1676
PROFIT PLUS (188) DATE OF
LAUNCH
23.08.2007
BOND FUND 10 12.3288 12.3288 12.3288
SECURED FUND 10 10.9779 10.9779 10.9779
BALANCED FUND 10 11.2509 11.2509 11.2509
GROWTH FUND 10 10.0311 10.0311 10.0311
GRATUITY PLUS DATE OF
LAUNCH
16.06.2009
BOND FUND 10 12.7382 12.7382 12.7382
INCOME FUND 10 13.2628 13.2628 13.2628
BALANCED FUND 10 13.0738 13.0738 13.0738

50
GROWTH FUND 10 12.4845 12.4845 12.4845
HEALTH PLUS (901) DATE OF
LAUNCH
04.02.2008
HEALTH PLUS FUND 10 10.8430 10.8430 10.8430
MONEY PLUS - I (193) DATE OF
LAUNCH
22.05.2008
BOND FUND 10 12.3170 12.3170 12.3170
SECURED FUND 10 13.0599 13.0599 13.0599
BALANCED FUND 10 12.9187 12.9187 12.9187
GROWTH FUND 10 12.1823 12.1823 12.1823
MARKET PLUS-I (191) DATE OF
LAUNCH
17.06.2008
BOND FUND 10 11.3897 11.3897 11.3897
SECURED FUND 10 11.3512 11.3512 11.3512
BALANCED FUND 10 11.5772 11.5772 11.5772
GROWTH FUND 10 12.0021 12.0021 12.0021
CHILD FORTUNEPLUS (194) DATE OF
LAUNCH
01.11.2008
BOND FUND 10 10.5292 10.5292 10.5292
SECURED FUND 10 12.8276 12.8276 12.8276
BALANCED FUND 10 12.6842 12.6842 12.6842
GROWTH FUND 10 13.3327 13.3327 13.3327
HEALTHPROTECTION PLUS(902) DATE OF
LAUNCH
29.04.2009

51
HEALTH PROTECTIONPLUS 10 10.1429 10.1429 10.1429
FUND
JEEVAN SAATHIPLUS (197) DATE OF
LAUNCH
29.06.2009
BOND FUND 10 10.0376 10.0376 10.0376
SECURED FUND 10 10.0152 10.0152 10.0152
BALANCED FUND 10 10.0091 10.0091 10.0091
GROWTH FUND 10 10.0439 10.0439 10.0439
# Subject to Market risk; not guaranteed
# Past performance may not indicate future performance rider.
5) Jeevan Aadhar Plan (Sec.80DD)
Premium paid for LIC’s Jeevan Aadhar Plan (for the maintenance of an handicapped dependent)
is eligible for deduction from the total income to the extent of Rs.50,000and to the extent of
Rs.75,000/- where handicapped dependent is suffering from specified severe disability.

6) Exemption in respect of commutation of pension under Jeevan Suraksha

& Jeevan Nidhi Plans. (Section 10(10A) :
A payment received by way of commutation of pension from Jeevan Suraksha &Jeevan Nidhi
Annuity plans is exempt from tax.

52
 ROLE AND RESPONSIBILITIES
 PRESENTING PRODUCTS - Insurance advisor builds relationship
 with customers and prospect to understand their needs.
o Claim settlement
o Maturity
o Death claim
o Revival of the policy
o Surrender
o Loans on policy

Roles

1. Insurance Provider:
o Offers life insurance coverage to individuals, ensuring financial protection for
families.
2. Financial Planner:
o Provides diverse plans to help individuals plan for future expenses like retirement,
education, or healthcare.
3. Social Security Contributor:
o Implements government-backed schemes for economically weaker sections of
society (e.g., PMJJBY, AABY).
4. Investment Manager:
o Invests policyholder premiums into various financial instruments, contributing to
national economic growth.

Responsibilities

1. Customer-Centric Approach:
o Develop and deliver policies catering to different financial needs and life stages.
2. Transparency and Trust:
o Provide clear and detailed information about policies, premiums, and benefits.
3. Claim Settlement:

53
 o Ensure a prompt and hassle-free claim settlement process.
4. Risk Management:
o Analyze risks to create sustainable and reliable insurance products.
5. Corporate Social Responsibility (CSR):
o Participate in activities that contribute to societal well-being, such as health and
education initiatives.

Key Findings from the Comparative Study

1. Target Audience:
LIC offers tailored products for various income groups, age brackets, and financial goals,
making it accessible to diverse demographics.
2. Product Versatility:
o Endowment Plans are best for long-term savings.
o Term Plans cater to high insurance coverage needs.
o Money Back Plans provide liquidity.
3. Investment vs. Protection:
o ULIPs are investment-focused, while Term Plans are pure risk covers.
o Endowment and Money Back Plans balance both.
4. Retirement Focus:
Pension plans like Jeevan Akshay VII ensure financial independence post-retirement.
5. Health Coverage:
Health insurance plans provide much-needed protection against rising medical expenses.
6. Social Responsibility:
LIC actively promotes financial inclusion through micro-insurance and special schemes
for weaker sections.

54
 FUNCTIONS OF INSURANCE

Risk Transfer

 Insurance allows individuals and businesses to transfer the financial burden of a potential
loss to an insurance company.
 By paying a premium, policyholders are protected from bearing the full cost of
unforeseen events such as accidents, illnesses, or natural disasters.

2. Risk Pooling

 Insurance operates on the principle of risk pooling, where premiums collected from a
large number of policyholders are used to compensate those who experience losses.
 This reduces the financial impact on any single individual or entity.

3. Protection Against Uncertainty

 Insurance provides financial security by ensuring compensation for losses due to

unexpected events.
 For example, life insurance offers support to the family of the insured in the event of their
death.

4. Encourages Savings

 Certain types of insurance, like endowment and pension plans, combine insurance
protection with savings.
 These plans help individuals accumulate funds for future goals, such as retirement or
children’s education.

5. Promotes Economic Growth

 By mitigating financial risks, insurance encourages investment and entrepreneurship.

 Businesses can operate confidently, knowing they are protected from potential losses.

55
6. Acts as a Financial Safety Net

 Insurance provides a financial cushion during emergencies, reducing stress and

preventing financial ruin.
 For example, health insurance covers medical expenses, and vehicle insurance covers
repair costs in case of accidents.

7. Facilitates Credit

 Insurance policies are often required as collateral for loans, providing lenders with
security.
 For example, a home loan may require property insurance, and a business loan may need
insurance for assets.

8. Social Security and Welfare

 Insurance schemes like group insurance, micro-insurance, and government-backed plans

promote social welfare by protecting low-income individuals and marginalized groups.
 Examples: Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Ayushman Bharat.

9. Promotes Risk Awareness

 By requiring policyholders to assess and declare potential risks, insurance increases

awareness of risk management practices.
 Businesses and individuals are encouraged to adopt safer practices to minimize risks.

10. Capital Formation

 Premiums collected by insurance companies are invested in various financial instruments,

contributing to capital formation in the economy.
 This promotes infrastructure development and economic stability.

56
11. Stabilizes Business and Society

 Insurance ensures that businesses and individuals can recover quickly after a loss,
maintaining economic and social stability.
 For example, disaster insurance helps rebuild communities after natural calamities.

57
 ANALYSIS

Strategies SWOT Analysis Review

Summary

Life Insurance Corporation of India (LIC) a fully owned subsidiary of Government of India is a
life insurance company. LIC offers various life plans such as individual plans pension plans
special plans unit plans group schemes child plans and health insurance plans. Few of the
company’s products are Janashree Chennai, Hyderabad, Delhi, Kanpur, Bhopal and Patna. It
offers insurance products in India through authorized banks and service providers. LIC operates
through its associates in Fiji United Kingdom Mauritius Bahrain Singapore Sri Lanka and Nepal.
The company is headquartered in Mumbai India.

To develop the business LIC is planning to develop and launch new life insurance products that
suits customer needs.

Global Data’s Life Insurance Corporation of India- Strategies SWOT Analysis Review provides
a comprehensive insight into the company’s history corporate strategy business structure and
operation. The report contains detailed SWOT analysis information on the company’s key
employee’s key competitors and major products and services.

This up-to-the-minute company report will help you to formulate strategies to drive your
business by enabling you to understand your partner’s customers and competitors better.

Scope

 Business Description- A detailed description of the company’s operations and business

division.
 Corporate Strategy- Global Data’s summarization of the company’s business strategy.
 SWOT Analysis- A detailed analysis of the company’s strengths weakness opportunities
and threats.
 Company History- Progression of key events associated with the company.
 Major Products and Services- A list of major products, services and brands of the
company.
58
 Key Competitors- A list of key competitors to the company.
 Key Employees- A list of the key executives of the company.
 Executive Biographies- A brief summary of the executives’ employment history.
 Important Location and Subsidiaries- A list of key locations and subsidiaries of the
company including contact details.

59
CHAPTER-5
FINDINGS

60
 FINDINGS

Findings: After completing the study following points can be drawn:

1. It has one of the single distribution networks amongst government insurance players.

2. LIC has many numbers of insurance policies and plans having flexible to meet the
customers’ requirement and expectation.

3. LIC entered the market with aggressive marketing and supported by after sale services
with the help of technology.

4. All LIC Plans come with Sovereign Guarantee i.e., Government of India Guarantee
regarding repayment. In fact, as of now, only LIC plans enjoy this Government
Guarantee.

61
CHAPTER-6
CONCLUSION

62
 CONCLUSION

After completing the project it is concluded that LIC develop its various plans and policies,
flexible in nature, according to the requirements of its targeted market or customers and is thus
beneficial to its customers in various ways. The most important benefit it provides to its
customers is that it is a government owned company. This lead to increase in the satisfaction
level of its customer that is why LIC has more than200 million policyholders which is equal to
the fourth largest country in world. Therefore it is not only beneficial but better than other
insurance companies not only regarding its product but also its services.

63
 BIBLIOGRAPHY

Information and data used in the project has been collected from the following sources:-

1. BOOKS:

 Kothari, C.R, “Research Methodology”, 3rd edition, 1997, Vikas Publishing House
Pvt.ltd. New Delhi.
 Dr. Gupta S.P& Dr. Gupta M.P., Business Statistics by Addition 2004, New Delhi.
 H. Narayanan, “Indian INSURANCE- A Profile”, 2008.
 Dr. P. K. Gupta, “Insurance and Risk Management”, 2004.

2, BROUCHERS/ INFORMATION BOOKLETS

 The Insurance Regulatory and Development Authority Bill, 1999.
 Product list LIC
 LIC Annual Report,2011

3. WEBSITES
 w.w.w.liclndia.com( http://www.pagesinventory.com/domain/www.liclndia.com.html)
 www.lrdaindia.org.com (http://www.urlidea.com/www/irdaindia.org.html)
 www.indiainfoline.com
(http://www.indiainfoline.com/Markets/News/PersonalFinance/Insurance)
 www.icici.com (http://www.icicibank.com/aboutus/group-comp.html )
 www.hdfc.com72(http://www.hdfc.com/corporate_governance/cor_introduction.asp )
 www.licmutual.com(http://www.licnomuramf.com/MarketTradeReport.aspx?o

pt=10)
 www.lichousing.com(http://www.lichousing.com//lichousing/aboutus/company

_profile.asp)
 www.wikipedia.org(http://en.wikipedia.org/wiki/LIC)

64
 www.reportbuyer.com(http://www.reportbuyer.com/companies/company_name

/l/life_insurance_corporation_india_strategic_swot_analysis_review.html)

65