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INTRODUCTION
Life insurance is a guarantee that your family will receive financial support, even in your
absence. Put simply, life insurance provides your family with a sum of money should
something happen to you. It thus permanently protects your family from financial crises.
In addition to serving as a protective cover, life insurance acts as a flexible money-saving
scheme, which empowers you to accumulate wealth-to buy a new car, get your children
married and even retire comfortably.
Insurance is a contract between two parties whereby one party called insurer undertakes
in exchange for a fixed sum called premiums, to pay the other party called insured a fixed
amount of money on the happening of a certain event.
It provides financial protection to help your family to manage after your death. Insurance
companies collect premiums to provide for this protection. ! loss is paid out of the
premiums collected from the insuring public and the insurance companies act as trustees
to the amount collected
Life insurance:
Life insurance is a contact between you and a life insurance company, which provides
your beneficiary with a pre determined amount in case of your death during the contract
term.
"uying insurance is extremely useful if you are the principal earning member in the
family .In case of your unfortunate premature demise, your family can remain finically
secure because of the life insurance policy that you have purchased.
#he primary purpose of life insurance is therefore protection of the family in the event of
death . #oday insurance is also seen as a tool to plan effectively for your future years
.$our retirement and for $our children%s future needs.#oday the market offer insurance
plan%s that not &ust cover your life and but and the same time grow your wealth too.
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Why we Need Life Insurance in Today Life:
1) Familys !ro"ec"ion # so that your loved ones are secure should an unfortunate
event happen to you. Life insurance can guarantee that your family receives a
lumpsum that safely tides them over any financial crises that might occur in your
absence.
$) Childs educa"ion: !s parent, your primary responsibility is to guarantee your
children's future. (ur )ducation Insurance plans ensure your child receives
money at key stages of his or her education even in your absence.
%) &a'in(s:*avings plans allow you to steadily save towards a pre-decided goal in a
secure manner. #hese plans provide you with a host of benefits. $ou can choose
the premium, the underlying fund in which you want to invest your money, the
ratio between protection and investment as per your re+uirements.
) Re"iremen":etirement plans help you secure guaranteed income for your retired
life. uring the !ccumulation phase, you systematically save while you are working.
hen you retire, the Payout stage of the plan begins. $ou then purchase an annuity,
which will serve as a steady stream of income, for the rest of your life.
*) +eal"h: !n integral part for financial planning is protecting oneself against any
medical emergencies as well. /ence, a very prudent decision would be to choose a
combination of plans that look after your finances and offer you a protective health
cover to ensure your financial planning is in track despite any ma&or illnesses.
In India, insurance has a deep-rooted history. 0101 saw the ad'en" of life insurance
,usiness in Indiawith the establishment of the (riental Life Insurance 2ompany in
2alcutta. #his 2ompany however failed in 0134. In 0156, the 7adras )+uitable had
begun transacting life insurance business in the 7adras Presidency. 0189 saw the
enactment of the "ritish Insurance !ct and in the last three decades of the nineteenth
century, the "ombay 7utual :0180;, (riental :0184; and )mpire of India :0168; were
started in the "ombay esidency. #his era, however, was dominated by foreign insurance
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offices which did good business in India, namely !lbert Life !ssurance, oyal
Insurance, Liverpool and London
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CO-./N0 .ROFIL
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CO-./N0 .ROFIL
)very day we wake up to the fact that more than 559 million lives are part of our family
called LI2.
e are humbled by the magnitude of the responsibility we carry and realise that the lives
that are associated with us are very valuable indeed.
!lthough this &ourney started five decades ago, we are still conscious of the fact that,
while insurance may be a business for us, being part of millions of lives every day for the
past >5 years has been a process called #B*#.
213BRIEF HISTORY OF INSURANCE
#he story of insurance is probably as old as the story of mankind. #he same instinct that
prompts modern businessmen today to secure themselves against loss and disaster existed
in primitive men also. #hey too sought to avert the evil conse+uences of fire and flood
and loss of life and were willing to make some sort of sacrifice in order to achieve
security. #hough the concept of insurance is largely a development of the recent past,
particularly after the industrial era C past few centuries C yet its beginnings date back
almost ?999 years.
Life Insurance in its modern form came to India from )ngland in the year 0101. (riental
Life Insurance 2ompany started by )uropeans in 2alcutta was the first life insurance
company on Indian *oil. !ll the insurance companies established during that period were
brought up with the purpose of looking after the needs of )uropean community and
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Indian natives were not being insured by these companies. /owever, later with the efforts
of eminent people like "abu 7uttylal *eal, the foreign life insurance companies started
insuring Indian lives. "ut Indian lives were being treated as sub-standard lives and heavy
extra premiums were being charged on them. "ombay 7utual Life !ssurance *ociety
heralded the birth of first Indian life insurance company in the year 0189, and covered
Indian lives at normal rates. *tarting 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. "harat Insurance 2ompany
:016?; was also one of such companies inspired by nationalism. #he *wadeshi movement
of 069>-0698 gave rise to more insurance companies. #he Bnited India in 7adras,
Aational Indian and Aational Insurance in 2alcutta and the 2o-operative !ssurance at
Lahore were established in 069?. In 0698, /industan 2o-operative Insurance 2ompany
took its birth in one of the rooms of the =orasanko, house of the great poet abindranath
#agore, in 2alcutta. #he Indian 7ercantile,
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06th of =anuary, 06>?, that life insurance in India was nationali@ed. !bout 0>4 Indian
insurance companies, 0? non-Indian companies and 8> provident were operating in India
at the time of nationali@ation. Aationali@ation was accomplished in two stagesE initially
the management of the companies was taken over by means of an (rdinance, and later,
the ownership too by means of a comprehensive bill. #he Parliament of India passed the
Life Insurance 2orporation !ct on the 06th of =une 06>?, and the Life Insurance
2orporation of India was created on 0st *eptember, 06>?, with the ob&ective 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 ade+uate financial cover at a
reasonable cost.
LI2 had > @onal offices, 33 divisional offices and 505 branch offices, apart from itscorporate office in the year 06>?. *ince life insurance contracts are long term contracts
and during the currency of the policy it re+uires a variety of services need was felt in the
later years to expand the operations and place a branch office at each district head+uarter.
re-organi@ation of LI2 took place and large numbers of new branch offices were opened.
!s a result of re-organisation servicing functions were transferred to the branches, and
branches were made accounting units. It worked wonders with the performance of the
corporation. It may be seen that from about 599.99 crores of Aew "usiness in 06>8 the
corporation crossed 0999.99 crores only in the year 06?6-89, and it took another 09 years
for LI2 to cross 5999.99 crore mark of new business. "ut with re-organisation happening
in the early eighties, by 061>-1? LI2 had already crossed 8999.99 crore *um !ssured on
new policies.
#oday LI2 functions with 5941 fully computeri@ed branch offices, 099 divisional offices,
8 @onal offices and the 2orporate office. LI2%s ide !rea Aetwork covers 099 divisional
offices and connects all the branches through a 7etro !rea Aetwork. LI2 has tied up
with some "anks and *ervice providers to offer on-line premium collection facility in
selected cities. LI2%s )2* and !#7 premium payment facility is an addition to customer
convenience. !part from on-line Fiosks and IG*, Info 2entres have been
commissioned at 7umbai, !hmedabad, "angalore, 2hennai, /yderabad, Folkata, Aew
elhi, Pune and many other cities. ith a vision of providing easy access to its
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policyholders, LI2 has launched its *!#)LLI#) *!7P!F offices. #he satellite
offices are smaller, leaner and closer to the customer. #he digitali@ed records of the
satellite offices will facilitate anywhere servicing and many other conveniences in the
future.
LI2 continues to be the dominant life insurer even in the liberali@ed scenario of Indian
insurance and is moving fast on a new growth tra&ectory surpassing its own past records.
LI2 has issued over one crore policies during the current year. It has crossed the
milestone of issuing 0,90,35,6>> new policies by 0>th (ct, 599>, posting a healthy
growth rate of 0?.?8H over the corresponding period of the previous year.
Drom then to now, LI2 has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. #he same motives
which inspired our forefathers to bring insurance into existence in this country inspire us
at LI2 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.
&ome of "he im!or"an" miles"ones in "he life insurance ,usiness in India are:
0101 (riental Life Insurance 2ompany, the first life insurance company on Indian soil
started functioning.
0189 "ombay 7utual Life !ssurance *ociety, the first Indian life insurance company
started its business.
0605 #he Indian Life !ssurance 2ompanies !ct enacted as the first statute to regulate
the life insurance business.
0651 #he Indian Insurance 2ompanies !ct enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
0631 )arlier legislation consolidated and amended to by the Insurance !ct with the
ob&ective of protecting the interests of the insuring public.
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06>? 54> Indian and foreign insurers and provident societies are taken over by the
central government and nationalised. LI2 formed by an !ct of Parliament, vi@. LI2 !ct,
06>?, with a capital contribution of s. > crore from the 8
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7aximi@e mobili@ation of people's savings by making insurance-linked savings
ade+uately attractive.
"ear 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 wholeE 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.
2onduct business with utmost economy and with the full reali@ation that the
moneys belong to the policyholders.
!ct as trustees of the insured public in their individual and collective capacities.
7eet the various life insurance needs of the community that would arise in the
changing social and economic environment.
Involve all people working in the 2orporation 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 2orporation a sense of
participation, pride and &ob satisfaction through discharge of their duties with
dedication towards achievement of 2orporate (b&ective.
-I&&ION
45!lore and enhance "he 6uali"y of life of !eo!le "hrou(h financial securi"y ,y
!ro'idin( !roduc"s and ser'ices of as!ired a""ri,u"es wi"h com!e"i"i'e re"urns7 and
,y renderin( resources for economic de'elo!men"24
8I&ION
4/ "rans#na"ionally com!e"i"i'e financial con(lomera"e of si(nificance "o socie"ies
and .ride of India24
-em,ers On The 9oard Of The Cor!ora"ion
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&hri2 T2&2 8iayan:2hairman;
&hri2 D2;2 -ehro"ra:7anaging irector - LI2;
&hri2 Thomas -a"hew T2:7anaging irector - LI2;
&hri2 /2;2 Das(u!"a:7anaging irector - LI2;
&hri2 /sho< Chawla :Dinance *ecretary, 7inistry of Dinance,
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W O.R/T /LL O8R INDI/
21> .RODUCT&
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/s indi'iduals i" is inheren" "o differ2 ach indi'idual?s insurance needs and
re6uiremen"s are differen" from "ha" of "he o"hers2 LIC?s Insurance .lans are
!olicies "ha" "al< "o you indi'idually and (i'e you "he mos" sui"a,le o!"ions "ha" can
fi" your re6uiremen"2
@ee'an /nura(
;omal @ee'an
CD/ ndowmen" 8es"in( /" $1
-arria(e ndowmen" Or
duca"ional /nnui"y .lan
CD/ ndowmen" 8es"in( /" 1>
@ee'an ;ishore
@ee'an Chhaya
Child Career .lan
Child Fu"ure .lan
Child For"une .lus
@ee'an /adhar
@ee'an 8ishwas
http://www.licindia.com/children_need_001_benefits.htmhttp://www.licindia.com/children_need_002_features.htmhttp://www.licindia.com/children_need_006_features.htmhttp://www.licindia.com/children_need_006_features.htmhttp://www.licindia.com/children_need_005_features.htmhttp://www.licindia.com/children_need_005_features.htmhttp://www.licindia.com/children_need_006_features.htmhttp://www.licindia.com/children_need_003_features.htmhttp://www.licindia.com/children_need_004_features.htmhttp://www.licindia.com/children_need_007_features.htmhttp://www.licindia.com/children_need_008_features.htmhttp://www.licindia.com/children_need_009_features.htmhttp://www.licindia.com/handicapped_001_features.htmhttp://www.licindia.com/handicapped_002_features.htmhttp://www.licindia.com/children_need_001_benefits.htmhttp://www.licindia.com/children_need_002_features.htmhttp://www.licindia.com/children_need_006_features.htmhttp://www.licindia.com/children_need_005_features.htmhttp://www.licindia.com/children_need_005_features.htmhttp://www.licindia.com/children_need_006_features.htmhttp://www.licindia.com/children_need_003_features.htmhttp://www.licindia.com/children_need_004_features.htmhttp://www.licindia.com/children_need_007_features.htmhttp://www.licindia.com/children_need_008_features.htmhttp://www.licindia.com/children_need_009_features.htmhttp://www.licindia.com/handicapped_001_features.htmhttp://www.licindia.com/handicapped_002_features.htm8/12/2019 Lic DAV Final
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The ndowmen" /ssurance .olicy
The ndowmen" /ssurance .olicy#Limi"ed .aymen"
@ee'an -i"raADou,le Co'er ndowmen" .lan)
@ee'an -i"raATri!le Co'er ndowmen" .lan)
@ee'an /nand
New @anara
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@ee'an 9hara"i # I
The Whole Life .olicy
The Whole Life .olicy# Limi"ed .aymen"
The Whole Life .olicy# &in(le .remium
@ee'an /nand
@ee'an Taran(
Two 0ear Tem!orary /ssurance .olicy
The Con'er"i,le Term /ssurance .olicy
/nmol @ee'an#I
/mulya @ee'an#I
http://www.licindia.com/periodic_moneyback_007_features.htmhttp://www.licindia.com/wholelife_001_features.htmhttp://www.licindia.com/wholelife_002_features.htmhttp://www.licindia.com/wholelife_003_features.htmhttp://www.licindia.com/endowment_005_features.htmhttp://www.licindia.com/jeevan_tarang_plan_007_features.htmhttp://www.licindia.com/term_assurance_002_features.htmhttp://www.licindia.com/term_assurance_003_features.htmhttp://www.licindia.com/term_assurance_001_benefits.htmhttp://www.licindia.com/amulya_jeevan-I_benefits.htmhttp://www.licindia.com/periodic_moneyback_007_features.htmhttp://www.licindia.com/wholelife_001_features.htmhttp://www.licindia.com/wholelife_002_features.htmhttp://www.licindia.com/wholelife_003_features.htmhttp://www.licindia.com/endowment_005_features.htmhttp://www.licindia.com/jeevan_tarang_plan_007_features.htmhttp://www.licindia.com/term_assurance_002_features.htmhttp://www.licindia.com/term_assurance_003_features.htmhttp://www.licindia.com/term_assurance_001_benefits.htmhttp://www.licindia.com/amulya_jeevan-I_benefits.htm8/12/2019 Lic DAV Final
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@ee'an &aa"hi .lus
@ee'an &aa"hi
.ension .lans are Indi'idual .lans "ha" (ae in"o your fu"ure and foresee financial
s"a,ili"y durin( your old a(e2 These !olicies are mos" sui"ed for senior ci"iens and
"hose !lannin( a secure fu"ure7 so "ha" you ne'er (i'e u! on "he ,es" "hin(s in life2
@ee'an Nidhi
@ee'an /
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.rofi" .lus
For"une .lus
-oney .lus#I
Child For"une .lus
LICEs &!ecial .lans are no" !lans ,u" o!!or"uni"ies "ha"
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=rou! Insurance &cheme is life insurance !ro"ec"ion "o (rou!s of !eo!le2 This
scheme is ideal for em!loyers7 associa"ions7 socie"ies e"c2 and allows you "o enoy
(rou! ,enefi"s a" really low cos"s2
=rou! LICs &u!erannua"ion .lus
=rou! Term Insurance &chemes
=rou! Insurance &cheme in Lieu Of DLI
=rou! =ra"ui"y &cheme
=rou! &u!er /nnua"ion &cheme
=rou! &a'in(s Lin
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INTRODUCTION TO TO.IC
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INTRODUCTION TO TO.IC
#he insurance sector in India has come a full circle from being an open competitive
market to nationali@ation and back to a liberali@ed market again.
#racing the developments in the Indian insurance sector reveals the 3?9-degree turn
witnessed over a period of almost 069 years.
#he business of life insurance in India in its existing form started in India in the year
0101 with the establishment of the (riental Life Insurance 2ompany in 2alcutta.
*ome of the important milestones in the life insurance business in India are
0605 - #he Indian Life !ssurance 2ompanies !ct enacted as the first statute to
regulate the life insurance business.
0651 - #he Indian Insurance 2ompanies !ct enacted to enable the government to collect
statistical information about both life and non-life insurance businesses.
0631 - )arlier legislation consolidated and amended to by the Insurance !ct with the
ob&ective of protecting the interests of the insuring public.
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06>? - 54> Indian and foreign insurers and provident societies taken over by the central
government and nationali@ed. LI2 formed by an !ct of Parliament, vi@. LI2 !ct,
06>?, with a capital contribution of s. > crore from the
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Insurance has always been a politically sensitive sub&ect in India. ithin less than 09
years of independence, the Indian (o'ernmen" na"ionalied !ri'a"e insurance
com!anies in 06>? to bring this vital sector under government control to raise much
needed development funds.
#he bigger private players claim that opening up insurance will give policy holders better
products and serviceE the opponents of privati@ation argue that in a poor country like
India insurance needs "o ha'e social o,ec"i'es and newcomers will not have that
commitment.
FORI=N DIRCT IN8&T-NT AFDI) .OLIC0 IN IN&UR/NC &CTOR
!s per the current :7ar 9?; DI norms, foreign participation in an Indian insurancecompany is restricted to 5?.9H of its e+uity K ordinary share capital. #he Bnion "udget
for fiscal 599> had recommended that the ceiling on foreign holding be increased to
46.9H. /owever, the matter is still under discussions.
!ll life insurance companies have to comply with the strict regulations laid out byIRD/.
#herefore there is risk in going in for private insurance players.
LIF IN&UR/NC COUNCIL
#he Life Insurance 2ouncil is funded by the Life Insurers in India.
&TRUCTUR
#he Life Insurance 2ouncil will have an )xecutive 2ommittee of 0? members of which 5
will be from the I! and the rest from licensed life insurers
T+ .UR.O&
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#he Life Insurance 2ouncil seeks to play a significant and complementary role in
transforming India%s life insurance industry into a vibrant, trustworthy and profitable
service, helping the people of India on their &ourney to prosperity.
ITE& -I&&ION
#o function as an active forum to aid, advise and assist insurers in maintaining
high standards of conduct and service to policyholders
!dvise the supervisory authority in the matter of controlling expenses
Interact with the
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5. 2o-ordinate with educational institutions in India and overseas to encourage
research, professional development courses etc.
3. Dacilitate knowledge-exchange programs :both in India and with councils abroad;
to develop and upgrade the skills of local insurance professionals
4. (rgani@e K participate in ma&or conferences, seminars, workshops and lectures by
IndianKvisiting experts on insurance and related areas
>. Launch an interactive websiteKlife insurance &ournalsKnewsletters
?. Provide structured regular information to the public about the industry
8. Launch regular insurance awareness programs.
--9R& OF T+ COUNCIL
&r2
No2Name of "he Com!any We,si"e
0 !viva Life Insurance 2o. India Pvt. Ltd. httpKKwww.avivaindia.comK
$ 9aa /llian Life Insurance Com!any L"d2 h""!:www2,aaallian2com
3 "harti !! Life Insurance Pvt. Ltd. httpKKwww.bharti-axalife.comK
4 "irla *un Life Insurance 2o. Ltd httpsKKwww.birlasunlife.comK
> /D2 *tandard Life Insurance 2o. Ltd httpKKwww.hdfcinsurance.comK
? I2I2I Prudential Life Insurance 2o. Ltd httpKKwww.iciciprulife.comK
8 IA< Gysya Life Insurance 2o. Ltd. httpKKwww.ingvysyalife.comK
> LIC Old -u"ual Life Insurance L"d2 h""!:www2
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00 7et Life India Insurance 2ompany Pvt. Ltd. httpKKwww.metlifeindia.comK
05 eliance Life Insurance 2ompany Ltd. httpKKwww.reliancelife.co.inK
03 *ahara India Life Insurance 2o, Ltd. httpKKwww.saharalife.comK
04 *"I Life Insurance 2o. Ltd httpKKwww.sbilife.co.inK
0> *hriram Life Insurance 2o. Ltd. httpKKwww.shriramlife.comK
0? #ata !I< Life Insurance 2ompany Ltd. httpKKwww.tata-aig.comK
.RINCI.L& OF IN&UR/NC
IN&UR/9L INTR&T
Insurable interest means that the person opting for insurance must have pecuniary interest
in the property he is going to get insured and will suffer financial loss on the occurrence
of the insured event. #his is one of the essential re+uirements of any insurance
contract. #herefore, a person can go for insurance of only those properties where he
stands to benefit by the safety of the property, and will suffer loss, damage, in&ury if any
harm takes place to such property. #hus, if you want to insure #a& 7ahal or ed Dort,
you will not be allowed to do so as you do not have any pecuniary interest in these
properties.
.RINCI.L OF UT-O&T =OOD F/IT+
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Like in other contracts, the insurance contract must be based on good faith. If the
insurance contract is obtained by way of fraud or misrepresentation it is void.
-/TRI/L F/CT& DI&CLO&UR
In the Insurance contract, the proposer is re+uired to disclose to the insurer all the
material facts in respect of the proposed insurance. #his duty of disclosing the material
facts not only applies to the material facts which are known to him but also extends to
material facts which he is supposed to know.
#hus, in case of Life Insurance the proposer must disclose the true age and details of the
existing illnesses K diseases. *imilarly, in case of the insurance of a building against fire,
the proposer must disclose the details of the goods stored if such goods are of ha@ardous
nature.
.RINCI.L OF IND-NIT0
#he insurance contract should always be a contract of indemnity only and nothing
more. !ccording to this principle, the insurance contract should be such that in case of
loss due to the eventialities mentioned in the contract, the insured should be neither
better off nor worse off after receiving the insured amount. #he main ob&ect of this
principle is to ensure that the insured is not able to use this contract for speculation or
gambling.
FUNCTION& OF IN&UR/NC
The func"ions of Insurance can ,e di'ided in"o followin( !ar"s:
0. Primary Dunctions
5. *econdary Dunctions
3. (ther Dunctions
The !rimary func"ions of insurance include "he followin(:
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Provide Protection - #he primary function of insurance is to provide protection against future
risk, accidents and uncertainty. Insurance cannot check the happening of the risk, but can
certainly provide for the losses of risk. Insurance is actually a protection against economic loss,
by sharing the risk with others.
2ollective bearing of risk - Insurance is a device to share the financial loss of few among many
others. Insurance is a mean by which few losses are shared among larger number of people. !ll
the insured contribute the premiums towards a fund and out of which the persons exposed to a
particular risk is paid.
!ssessment of risk - Insurance determines the probable volume of risk by evaluating various
factors that give rise to risk. isk is the basis for determining the premium rate also
Provide 2ertainty - Insurance is a device, which helps to change from uncertainty to certainty.
Insurance is device whereby the uncertain risks may be made more certain.
The secondary func"ions of insurance include "he followin(:
Prevention of Losses - Insurance cautions individuals and businessmen to adopt suitable device
to prevent unfortunate conse+uences of risk by observing safety instructionsE installation of
automatic sparkler or alarm systems, etc. Prevention of losses cause lesser payment to the
assured by the insurer and this will encourage for more savings by way of premium. educed
rate of premiums stimulate for more business and better protection to the insured.
*mall capital to cover larger risks - Insurance relieves the businessmen from security
investments, by paying small amount of premium against larger risks and uncertainty.
2ontributes towards the development of larger industries - Insurance provides development
opportunity to those larger industries having more risks in their setting up. )ven the financial
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institutions may be prepared to give credit to sick industrial units which have insured their
assets including plant and machinery.
The o"her func"ions of insurance include "he followin(:
7eans of savings and investment - Insurance serves as savings and investment, insurance is a
compulsory way of savings and it restricts the unnecessary expenses by the insured's Dor the
purpose of availing income-tax exemptions also, people invest in insurance.
*ource of earning foreign exchange - Insurance is an international business. #he country can
earn foreign exchange by way of issue of marine insurance policies and various other ways.
isk Dree trade - Insurance promotes exports insurance, which makes the foreign trade risk free
with the help of different types of policies under marine insurance cover.
LIF IN&UR/NC /D8/NT/=&
*ome of the life insurance advantages offered by different types of Life Insurance
Policies are
Life Insurance policies can help secure the future of children for
collegeKeducational purposes as the amount of life Insurance Policy increases on a
minor%s or parent%s life.
Life Insurance provides the option to pass e+ual assets to the children who are not
active in the Damily business at the time the family business is passed on.
#he growth of a cash-value policy is tax-deferred - you do not pay taxes on the
cash value accumulation until you withdraw funds from the policy.
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Life Insurance helps retain your "usiness from the loss of a key employee.
Bntimely death of a key employee can pose severe financial loss to the business.
! lot of Insurance products presently provide good returns, which could be a
beneficial way for saving necessary funds for retirement years.
"enefits are available immediately and may be used to help pay expenses such as
final illness and funeral costs, eliminating the need to sell estate assets to cover
these costs.
! carefully signed Life Insurance Policy with desired ownership and beneficiary
arrangements helps secure you and your family in the long term.
=LO&&/R0 OF IN&UR/NC TR-&
Ao insurance resource would be complete without a comprehensive glossary of terms.
/ere is the list of terms and their definitions to better help you navigate the sometimes
confusing world of insurance. It is essential to know the terminology of every field before
going deep in it.
/cciden"
! sudden and unintentional happening leading to a loss. In the context of life insurance, it
is a sudden and unforeseen happening that causes disability or death of the policyholder.
/(en" ALife /d'isor)
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! representative of an insurance company authori@ed to sell insurance policies.
9eneficiary
#he person who receives the benefit of a policy in case of death during the term or the
policyholder who receives the benefit on maturity.
Claim
! re+uest for payment of the contractual benefits by the insurer that is made by the
insured or the beneficiary.
Dea"h 9enefi"
#he benefit received by the beneficiary on the death of the insured.
-a"uri"y Da"e
#he date on which the policy term expires.
Nominee
! person selected by the policyholder to receive the benefit in case of death of the life
insured.
.olicyholder
#he person who owns the policy, in this case, a life insurance policy.
.remium
#he amount paid by a policyholder to the insurance company, in order to be covered
under a policy.
&urrender 8alue
! value payable if you want to surrender the plan before a claim arises.
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Term
#he tenure of the policy.
ND OF T+ &TUD0
Insurance sector is growing at a very fast speed. Aow it is becoming the main part of
growth of Indian economy. ifferent companies are entered in insurance industry. #he
main source of income of these companies are ulip plans. 7oney is invested in share
market, securities etc. earned by plans. I did my training in LI2 , *o I want to know about
the LI2 plans and to analysis about the financial condition of any company ratio analysis
is the best source. It tells about the ability of payment of liability of company. *ome
parameters which I have taken for study-
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eturn
Premium
Portfolio of funds
*ome atios
!llocation charges
O9@CTI8& OF T+ &TUD0
.rimary O,ec"i'e :
12 !nalysis of Insurance *ector as a whole taking LI2
&econdary O,ec"i'es
$2 #o know about the financial !osi"ionof LI2 .
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%2 #o know the 2urrent market position of the LI2 .
2 #o know the impact of !dvertisement of LI2.
2 #o Fnow the Products and policies of LI2 .
*2 #o know the preference of the customers.
32 #o invite suggestions from the customers.
>2 #o know about the customers awareness regarding the company.
&WOT /N/L0&I&
&TRN=+T&
0. ich experience of management
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5. *tability
3. *killed and tactful staff
4. )ntrepreneurship +uality
>. Innovative Product training on financial market
W/;N&&
0. Insufficient chairs in office e+uipments
5. )mployee do not have hisKher private cabin
3. orkplace had back office very congested
O..URTUNIT0
0. *tability through increase brand awareness
5. 7arket penetration
3. Increase in customer%s wallet share
4. leverages the latest technology for providing the and clients
>. . !ttrition rate in insurance industry
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R&/RC+
-T+ODOLO=0
R&/RC+ -T+ODOLO=0
esearch 7ethodology has many dimensions, it include not only research methods but
also considers the logic behind the methods used in the context of the study and explains
why only a particular method of techni+ue had been used so that research lend
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themselves to proper evaluations. #hus in a way it is a written game plan for concluding
research therefore in order to solve research problem it is necessary to design a research
methodology for the problem as the same differ from problem to problem.
%2$ Research Desi(n:
&co!e of &"udy : esearch design in the conceptual structure within which the
research is conducted. #heir function is to provide for the collection of relevant
evidence with minimum expenditure of effort, time and money. "ut, how this can be
achieved depends on the research purpose.
#he scope has been limited to smoke si@e of 099 respondents due to time J cost
constraints. /owever, the area of study with respect to geographical city of $amuna
Aagar.
%2% Da"a Collec"ion
!fter the research problem has been defied and the research design has been chalked
out, the task of date collection begins. ata can be collected from other primary or
secondary sources.
Dor the collection of primary data the respondents were contacted personally and thetool for gathering the data was the +uestionnaire and tally calling.
Dor the collection of secondary data the internet, out look maga@ine :0> 7ay 5903; J
the newspaper are used.
%2 &am!lin( .lan
#he following factors have to be decided within the scope of sampling plan.
A1) &am!lin( uni" : It defines the target population that will be sampled i.e. it answers
who is to be surveyed.
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A$) &am!lin( sie:It indicates the no of people to be surveyed through large sample
given more reliable results than small samples but due to constraints of time and
money the sample si@e was restricted to 099 which are related to 0amuna Na(ar 2
A%) &am!le "echni6ue :#his refers to the procedure by which the respondent shouldbe chosen.
In this study simple random sampling has been used a sample of 099 respondents.
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D/T/ /N/L0&I& H
INTR.RT/TION
D/T/ /N/L0&I& H INTR.RT/TION
Life Insurance Com!anies .remium
u!"o /!ril $B1% (Fig In Rs. Cr.)
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Company Premium Market Share (%)
LI2 66?.63 ?3.6>
"!=!= 031.88 1.69
I2I2I 059.?? 8.84
/D2 >0.34 3.56
7! A) $(F 40.49 5.??
IA< G$*$! 38.60 5.43
)LI!A2) LID) 3>.>9 5.51
#!#!-!I< 33.33 5.04
!GIG! 5?.04 0.?1
*"I 5>.40 0.?3
"IL! 55.80 0.4?
F(#!F Life 0>.31 9.66
7)#LID) 9?.80 9.43
*/I!7 LID) 9.8> 9.9>
*!/!! 9.?0 9.94
Market Share (%) LICBAJAJ
ICICI
HDFC
MAX NEW YORK
ING VYSYA
RELIANCE LIFE
TATA-AIG
AVIVA
SBI
BIRLA
KOTAK LIFE
MET LIFE
SHRIRAM LIFE
SHARA
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F U N D . R F O R - / N C
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-10.00%
0.00%
10.00%
20.00%30.00%
40.00%
0.00%
A
!!"#$$%
!
"'()*+,-.
D/-01%2
!
"'()*+,-.
G
,0"0-)##.
!
"'()*+,-.
D/-01%2
3040-2#
+,-.
G
,0"0-)##.
3040-2#
+,-.
5#-$%'-
3040-2#.
+,-.
G"',6
3040-2#.
+,-.
F7ND 5ERFORMANCE
S# $6#)'
3 /#"$
2 /#"$
1 /#"$
8 ')*$
3 ')*$
CO-./RI&ON 9TWN DIFFRNT ULI. .L/N&
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F/TUR& IN LIC
9/&I& ;&I. FLJI +/D&T/RT RTIR-NT
Re"urn 39H 5>H 58H 55H
/lloca"ion
char(es
04H 35H 04H M 3.>H 04H M 3.>H
-inimum
!remium
01999 01999 01999 01999
/(e 9-?> 01-?> 9-?> 3>-?>
(2m2'2 5.8>H-
04.5>H
9 9 9
CO-./RI&ON OF IN8&T-NT OF FUND& IN
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DIFFRNT ULI. .L/N& IN LIC
;&I. aggressive growth fund
FLJI advantage multiplier fund
;&I. /ND +/D&T/RT
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F*IP guaranteed growth fund
+/D&T/RT multiplier fund
;&I. /ND RTIR-NT
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;&I. dynamic balanced fund
)#I7)A# pension balanced fund
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&U==&TION
&U==&TION
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0 2ompany should try to maintain ratio up to the standard ratio.
5 2ompany should try to pay its liabilities in time, which help it to maintain a good
financial position of the company2
De," "o "o"al fund ra"io
#his ratio is a variation of the debt e+uity ratio and gives the same indication as the debt
e+uity ratio. In this ratio debt is expressed in relation to total funds.
ebt to total fund ratio N debt Ke+uity M debt
$)! 5996-09 5909-00 5900-05 5905-03
ebt 0506> 465?6 0994>4 0?8>?1
2apitali@
ation
35840 8>?0? 0395>9 598098
ratio .38 .?0 .88 .19
INTR.RT/TION
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"y implementing the above mentioned suggestions the company will able to
perform better in the market by making their good recognition among customers. #he
effect of policy implication would be
0. Increase in no. of customers.
5. Gariety of options for customers.
3. eduction in risk in allocation of funds.
4. iversified portfolio will give stable returns.
>. 7ore trust among customers regarding life insurance.
?. /elpful in long run to build goodwill.
8. /elpful in making effective marketing strategy.
#here are many advantages other than these. #he impact will be of long term
and help the company to grow J diversify itself in a different way.
-/R;T .O&ITION OF CO-./N0
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LIC 2:
LI2 displaces "irla sunlife and take no. 5 slot with the under written premium of s.
4649>.05 lakh and with the growth rate of 333.>9 growth rate and premium market shares
591?H.
#his market position shows that LI2 still leads the private insurance co. the growth
rate of LI2 :333.>9H; is more. LI2 out of the most fastest growing co. in insurance
field.
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FIN/NCI/L .O&ITION OF CO2
LIC :
LI2 life Insurance co. ltd made a net profit of s. 0?38 crore for the first nine month
of current fiscal compassed with 550 cr. Profit made in fiscal year 5905.
*ince 5905 , it has made total cases of s. ?>1 crore.
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-/R;T &+/R OF DIFFRNT IN&UR/NC
CO-./NI&
N/- OF T+ .L/0R -/R;T &+/R AK)
"!=!= !LLI!AO 34
LI2 55
"IL! *BA LID) 03
/D2 *#!A! 8
#!#! !I< 6
(thers 0>
Market Share
34%
22%9%
13%
:%
1%
B;;AK ha'e o"her !olicy
and 3BK ha'e LIC !olicy2
LIC = 90%
O)*#"
= >%
B;;
A< =
22%
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Which insurance com!anyEs add you see?
In"er!re"a"ion
This (ra!h shows "ha" "he >K of !eo!le seen add of LIC !olicy7 3K ha'e seen add
of LIC
LIC =
>:%
N'= 1%
B')* = 3% = B;; A
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Which Insurance Com!any you !refer ?
In"er!re"a"ion
This (ra!h shows "ha" "he $$K of !eo!le !refer 9aa allian !olicy7 1$K !refer
o"her and LIC !referred ,y **K2
LIC = 88%
B;; A"B*IA)**7!A 39
*/(P-F))P) 5>
/(B*)-ID) 0>
(#/) >
TOT/L 1BB
2%
30%2%
1%%
SERVICEMAN
B7SINESSMAN
SHO5-KEE5ER
HO7SE-WIFE
OTHER
In"er!re"a"ion
The (ra!h shows "ha" "he ma5imum num,er of !ersons are ser'iceman7
sho!
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&a'in( ins"rumen" Ka(e of !erson
"ank 4>H
Post office 5>H
P.P.D. 1H
Insurance 04H
(thers 1H
TOT/L 1BB
4%
2%
>%
14%
>%
0%
%
10%
1%
20%
2%
30%
3%
40%
4%
%ageofpeople
B? 5'$) '++# 5.5.F. I$,"# O)*#"$
Saving instrument
Saving Instrument
In"er!re"a"ion
This "a,le shows "ha" !eo!le mainly !refer ,an
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L)** #/!A 5>$* ?
5?$* #( 3>$* 5>
3?$* #( 4>$* 49
4?$* #( >>$* 06
7() #/!A >>$* 09TOT/L 1BB
8
2
40
1:
10
0
10
120
2
30
3
40
NO.OFPEOPLE
LESS THAN
2YRS
28YRS TO
3YRS
38YRS TO
4YRS
48YRS TO
YRS
MORE THAN
YRS
!E !"O#P
!E $OMPOSI%ION
INTR.RT/TION
In this market survey most of the people are between the age group of 5?->>yrs which
indicates that this report has most of the emphasis :14H; on those people who are well
established in their related field i.e. business, profession, &ob, etc..
-O&T I-.ORT/NT CRITRI/ W+IL IN8&T-NT:
-O&T I-.ORT/NT CRITRI/ .RCNT/=
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W+IL IN8&T-NT
/igh returns 04
Li+uidity 59
*ecurity 59
Insurance cover 55#ax benefits 5?
TOT/L 1BB
MOS% IMPO"%N% $"I%E"I &'ILE
IN(ES%MEN%
H%!* "#),"-$=
14
L%@,%.%)/= 20
S#,"%)/= 20
I-$,"-#
'"= 22
T #-#+%)$=28
INTR.RT/TION
Aowadays people are e+ually concerned for tax benefits, insurance, security, li+uidity
and high returns. /ence life insurance is the only source of investment which cover all
these criteria so now people are getting aware of life insurance sector and gradually it
will be the top most priority for the general public to invest2
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9R/ND RLI/9ILIT0 :
9R/ND RLI/9ILIT0 .RCNT/=
LI2 49
"a&a& !lian@ 54
/D2 *tandard Life 0>
7ax Aew $ork Life 05
#!#! !I< 6
TOT/L 1BB
)"N* "ELI)ILI%+
40
241
12:
010
1202303404
LIC B;; < HDFC
S)" M N#( Y'"?L+# TATA AIG
PE"$EN%!E
INTR.RT/TION
#his survey has shown that LI2 with 49H of preference votes still and will remain Ao.0
private life insurance company in year to comes as it offer the widest range of products or
plans with more and more features of flexibility, li+uidity , safety, higher returns,
transparency and tax benefits. It also indicates that this repot have proved that nowpeople are aware of private life insurance companies as they are satisfying their needs.
LIC LIF IN&UR/NC CO2 LTD2
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LI2 still lead the Insurance sector.
Dinancial Position of LI2 are good because since 5905, it has made cases of s.
?>1 crore
7ore people known about the LI2 than others ma&or players .
7ore people prefer LI2 Life Insurance 2o.
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CONCLU&ION
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CONCLU&ION
LI2 . leads the Insurance *ector 84H people know about the co. but since 5905,
it has made the total cases of s. ?>1 crore because of the high expenditure in
!dvertisement.
LI2 Life Insurance 2o. Ltd. is good in +uality services but at present the preference of
people to co. is less only 3?H know about the LI2 life Insurance 2o. Ltd. #he reason
behind it is not regular add and not the more relationship with the people but now it is
one of the fastest.
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LI-IT/TION& OF T+ &TUD0
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LI-IT/TION& OF T+ &TUD0
#he limitation of the study includes the weak points that are not covered during the study.
! person can%t analy@e all aspects of the study. *ometimes he forgot some factors or
sometimes he is not able to study the impact of these factors because of time constraints
or limited recourses.
*o, the main limitations of my study are as follows
0. #ime period of six weeks is not sufficient to conduct that study.
5. Garious possible cases are ignored such as switching, surrender, death case
etc.
3. proper information is not given by employees
4. less co-ordination with trainer
>. insufficient data
?. we have not cover all aspects of insurance
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&U==&TION& OF T+ &TUD0
RCO--ND/TION&
!fter looking the findings of the study I want to recommend to the managers of
LI2 have to close look towards the management of funds to improve the returns. In fund
management, asset allocation is very important because returns and risk factor is
depending on it. *o, I recommend that
0. #imely review of asset allocation.
5. 7ake changes according to the movement of markets.
3. #ry to reduce the Premium !llocation charges. #hat will lead to more
investment in the market and more returns.
4. iversify the funds to reduce risk factor.
>. Provide services to the customers to the best.
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&U==&TION&
2ompany should emphasis on insurance plan advertisement, because at present
company main focus on conventional product advertisement.
2ompany also segment for small income people. "ecause company mainly plan
for middle and high income people group. If company enters in this segment then
company can capture a large part of rural market.
2ompany should also change the commission structure of D.2., because in initial
year commission is very high as compare to remaining year. *o D.2. does not
focus on remaining year and many policies lapsed.
7ore and more advisor need to made so that the market can be covered at large.
uring my survey I contact to people like doctors lawyers ,bank manager, and
high profile people. but according to my observation these people are not suitable
because they are not interested in such kind of work. #herefore people doing
clerical &obs, graduates unemployed people, who are in low income group should
be taken into consideration.
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9I9LIO=R/.+0
W9&IT&
httpKKwww.blackwell-synergy.comKlinksKdoiK09.0000K9955-0915.99394
httpKKwww.lifeinscouncil.orgKmember.htm
httpKKbusiness.mapsofindia.comKinsuranceK
httpKKwww.allbankingsolutions.comKinsuremain.htm
httpKKwww.lic.comKlic>;.Notes and Queries.London 999>048.
Bnited ominions #rust Ltd v Firkwood, 06??, )nglish 2ourt of !ppeal, 5 Q"
430
Insurance (rdinance, *ection 5, Interpretation, /ong Fong; Aote that in this casethe definition is extended to include accepting any deposits repayable in less than3 months, companies that accept deposits of greater than /FR099 999 for periodsof greater than 3 months are regulated asdeposit taking companiesrather than asbanks in /ong Fong;.
#yree's Insurance Law in Aew Oealand, ! L #yree, LexisAexis 5993, page 89.
httpKKen.wikipedia.orgKwikiKebitsandcredits
httpKKwww.ifsl.org.ukKuploadK2"*Insurance5991.pdfPD :?31 F"; chart 8,
page 3 httpKKwww.ifsl.org.ukKuploadK2"* Insurance 5991.pdfPD :?31 F"; chart 1,
page 4
SFnowledge, the most valuable intangibleS by!n&u "hargava. #he 7!
=ournal, =une 5990E
http://www.blackwell-synergy.com/links/doi/10.1111/0022-1082.00304http://www.lifeinscouncil.org/member.htmhttp://business.mapsofindia.com/insurance/http://www.allbankingsolutions.com/insuremain.htmhttp://www.lic.com/lic_GroupSite/groupcos/lic.htmhttp://www.allianzbajaj.com/http://books.google.com/books?id=uIrWLegNZxUC&pg=PA431&lpg=PA431&dq=bank+italian+bench&source=web&ots=gp-um7BxxP&sig=r8eVJxS5-aLx3dmb_BmFxYuvW-Uhttp://books.google.com/books?id=uIrWLegNZxUC&pg=PA431&lpg=PA431&dq=bank+italian+bench&source=web&ots=gp-um7BxxP&sig=r8eVJxS5-aLx3dmb_BmFxYuvW-Uhttp://en.wikipedia.org/wiki/Special:BookSources/050005147Xhttp://en.wikipedia.org/wiki/List_of_banks_in_Hong_Konghttp://en.wikipedia.org/wiki/Debits_and_creditshttp://www.ifsl.org.uk/upload/CBS_Insurance_2008.pdfhttp://en.wikipedia.org/wiki/Portable_Document_Formathttp://www.ifsl.org.uk/upload/CBS_Banking_2008.pdfhttp://en.wikipedia.org/wiki/Portable_Document_Formathttp://findarticles.com/p/articles/mi_m0ITW/is_9_83/ai_n14896905/pg_1/http://en.wikipedia.org/wiki/Anju_Bhargavahttp://www.blackwell-synergy.com/links/doi/10.1111/0022-1082.00304http://www.lifeinscouncil.org/member.htmhttp://business.mapsofindia.com/insurance/http://www.allbankingsolutions.com/insuremain.htmhttp://www.lic.com/lic_GroupSite/groupcos/lic.htmhttp://www.allianzbajaj.com/http://books.google.com/books?id=uIrWLegNZxUC&pg=PA431&lpg=PA431&dq=bank+italian+bench&source=web&ots=gp-um7BxxP&sig=r8eVJxS5-aLx3dmb_BmFxYuvW-Uhttp://en.wikipedia.org/wiki/Special:BookSources/050005147Xhttp://en.wikipedia.org/wiki/List_of_banks_in_Hong_Konghttp://en.wikipedia.org/wiki/Debits_and_creditshttp://www.ifsl.org.uk/upload/CBS_Insurance_2008.pdfhttp://en.wikipedia.org/wiki/Portable_Document_Formathttp://www.ifsl.org.uk/upload/CBS_Banking_2008.pdfhttp://en.wikipedia.org/wiki/Portable_Document_Formathttp://findarticles.com/p/articles/mi_m0ITW/is_9_83/ai_n14896905/pg_1/http://en.wikipedia.org/wiki/Anju_Bhargava8/12/2019 Lic DAV Final
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/NNJUR
M12 Do you
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IN&UR/NC OT+R&
M2 > Which is "he mos" im!or"an" cri"eria while in'es"men" ?
+I=+ RTURN& LIMUIDIT0 &CURIT0
IN&UR/NC CO8R T/J 9NFIT&
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