black book on a study on financial management

black book

1. 1
l OM oAR cP SD | 23 4









“STUDY ON PERCEPTION OF INVESTORS INVESTING IN LIFE
INSURANCE ”

Summer Internship Project

Submitted in
Partial fulfilment for the Award of the Degree


MASTERS IN MANAGEMENT STUDIES (MMS)
To
Thakur Institute of Management Studies & Research
As per the guideline of
University of Mumbai
Submitted by
SAMRAT SINGH
M2224136
Under the Guidance of
DR. CHARU UPADHYAYA
MMS-2022-2024

2. 2








DECLARATION



I hereby declare that the project report entitled, “A Study on Perception of Investors Investing In Life
Insurance” submitted to Thakur Institute of Management Studies & Research, Mumbai, is a record of the original
work done by me under the guidance of Dr. Charu Upadhyaya, and this project work is submitted in partial
fulfilment of the requirements for the degree of Masters in Management Studies. I also confirm that, this is my
original work and the results embodied in this study have not been submitted to any other Institute or University
for the award of any other degree or diploma








Place: Mumbai Date:











Name: Samrat Singh
Roll Number: M2224136
Specialization: Finance
Batch: F2

3. l OM oAR cP SD | 23 41 2 73 5


3


PROJECT COMPLETION CERTIFICATE
To whomsoever it may concern

This is to certify that Samrat Singh of Thakur Institute of Management Studies and Research has duly completed his
project as part of his MMS curriculum for 2022-2024 at “Accrual Intelligence Manuals India PVT LTD” from May
2021 to July 2021 on "A Study on Perception of Investors Investing In Life Insurance " under the guidance of Dr.
CHARU UPADHYAYA .






His work and output have been found to be satisfactory:




Dr. Charu Upadhyaya Dr. Pankaj Natu

(Professor, TIMSR) (Director, TIMSR)






Signature Of Guide


Date:

4. l OM oAR cP SD | 23 41 2 73 5


4
COMPANY CERTIFICATE

5. l OM oAR cP SD | 23 41 2 73 5


5
ACKNOWLEDGEMENT

I take this immense opportunity to thanks my institute director Dr. Pankaj Natu for providing me with an excellent
infrastructure and conducive atmosphere facility for developing this project.
I express my heartiest thanks to my mentor, Dr. Charu upadhyaya for her precious advice that helped in selecting my
study site in the initial but the most crucial stage of my project. Her constructive comments and informative feedback
have been very useful towards the completion of my project. I am greatly thankful for her invaluable advices on the
quantitative research part of my project. I would like to thank her for considering me very patiently in the process. I also
express my thanks to my fellow classmates and colleagues for their continuous help and support.

6. l OM oAR cP SD | 23 41 2 73 5


6
TABLE OF CONTENTS


CHAPTERS PAGE NO.
1. EXECUTIVE SUMMARY 07-07
2. INTRODUCTION 08-68
 CONCEPT OF INSURANCE 08-09
 OVERVIEW OF CURRENT INSURANCE INDUSTRY 09-10
 ADVANTAGES OF LIFE INSURANCE 10-12
 HISTORY OF INSURANCE 12-36
 INTRODUCTION TO LIC 37-44
 PRODUCTS OFFERED BY LIC 45-49
 TOP 20 INSURANCE COMPANY IN INDIA 49-63
 SWOT ANALYSIS OF LIC OF INDIA 64-66
 HYPOTHESIS 67
 OBJECTIVES OF THE STUDIES 67
 SCOPE OF THE STUDY 67
 LIMITATIONS OF THE STUDY 68

3. COMPANY OVERVIEW 69-73
4. REVIEW OF LITERATURE 74-78
5. RESEARCH DESIGN AND METHODOLOGY 79-80
 TYPE OF RESEARCH 79
 SAMPLE DESIGN 79
 SAMPLE SIZE 79
 SAMPLING TECHNIQUE 79
 DATA SOURCE 79
6. DATA ANALYSIS AND INTERPRETATIONS 81-95
7. FINDINGS, SUGGESTIONS & CONCLUSION 96-99
QUESTIONNAIRE 100-102

7. l OM oAR cP SD | 23 41 2 73 5


7


CHAPTER – 1
EXECUTIVE SUMMARY



The study's primary goal is to identify investor perceptions of and attitudes about life
insurance in Mumbai, which will aid the company in developing a marketing plan. The analysis
will assist the business in developing strategies, new goods, plans, and focusing on its weaker
areas. Additionally, the brand perceptions of various businesses will be recognized, aiding the
organization in determining how its competitors are perceived by the general public. Additionally,
the majority of people invest in insurance. Most consumers want safe investments that will also
yield higher returns.



Topic of the study
A study on perception of investors investing in life insurance



Research Objective
1) To examine the awareness of customers to life insurance
2) To know the satisfaction level of customers.
3) To identify the expectations of customers towards LIC
4) To study the needs of customers.
5) To know the opinion regarding benefits provided by life insurance.
6) To compare LIC with competitors.

8. l OM oAR cP SD | 23 41 2 73 5


8
CHAPTER - 2
INTRODUCTION


"The protection of the economic values of the assets is related to the business of insurance." Every
human has a predisposition to preserve money to guard against hazards or unforeseen situations.
One way that people try to protect themselves against future dangers or uncertainty is through
insurance. It provides protection from dangers, occurrences, or losses. Savings options for people
include gold, fixed assets like real estate, banking, and insurance. Gross domestic savings are the
sum of all individual savings inside a nation. Indians prefer to invest in gold or fixed assets rather
than savings, despite the country's high savings rate. the insurance industry is still untapped in
India.



CONCEPT OF INSURANCE
Life has always been filled with uncertainty. It always takes the most ingenuity and foresight on
the part of man to be secure against unpleasant possibilities. The human spirit is to pay for
protection or to pray. Since the beginning of time, man has been accustomed to praying to God for
safety and protection. Insurance companies today want him to pay for security and protection.
According to the insurance salesman, "God helps those who help themselves" is definitely true.

In this country, there are far too many individuals without jobs, and employment no longer ensures stable
financial support. Numerous millions of part-time, self-employed, and low-paid workers endure
appalling living conditions with no protection from risk. A new source of insecurity, the changing
demands of family life, separation, divorce, and elderly dependents are tormenting society in addition to
the inherent changing employment risks, the prospect of ongoing change in the workplace with its
attendant threats of unemployment and low pay, especially after the adoption of the New Economic
Policy. One's life has become centered around risk. In light of this context, insurance companies have
launched life insurance policies to cover risks at various levels. Protection from disability or financial
support for dependents in the case of the insured's death is provided by life insurance. It is a gauge of
social security for the insured or their dependents' subsistence. This serves to give the right to life
significance, make it worthwhile to live, and provide a means of subsistence. It follows that one of
the social security measures envisioned by the Indian Constitution is an appropriate life insurance
policy that is within the paying capacity and means of the insured to pay premium. Therefore, the
right to life and the dignity of the individual guaranteed by the constitution include the right to social
security, protection of the family, and economic empowerment for the poor and disadvantaged.

Man finds his security in income (money) which enables him to buy food, clothing, shelter and
other necessities of life. A person has to earn income not only for himself but also for his

9. l OM oAR cP SD | 23 41 2 73 5


9
dependents, viz., wife and children. He has to provide legally for his family needs, and so he has
to keep aside something regularly for a rainy day and for his old age. This fundamental need for
security for self and dependents proved to be the mother of invention of the institution of life
insurance.



OVERVIEW OF CURRENT INSURANCE INDUSTRY
WHAT IS INSURANCE?
Through the use of insurance, a small number of fatalities can be compensated with money
(premium payments) obtained from numerous people. An effective defense against unforeseen
future disasters is insurance. It is a set-up where the losses incurred by a small number of people
are shared by many people who face comparable risks. It serves as insurance against monetary loss
brought on by unplanned circumstances. In order to provide protection for the purpose, insurance
companies collect premium. The insurance companies serve as trustees for the premiums that are
collected from consumers and are used to pay claims for losses. These businesses provide proposal
forms that customers fill out with the necessary insurance information. Insurance firms evaluate
the risk and determine the premium based on the responses in their proposal. Insurance providers
assume risks. In exchange for a premium on the insurance, they assume the risk. The purpose of
insurance is to offer protection, stop losses, foster capital growth, etc. Therefore, insurance can be
viewed as a technique in which the insured pays a premium in exchange for the insurer taking on
the risk of having to make a significant payment. It can also be described as an agreement between
two parties (the insurer and the insured) whereby the insurer agrees to pay the insured or his
beneficiary a specific amount in the event of a specific occurrence for which insurance is
necessary. Insurance industry Commands massive funds through sales of insurance products to
large number of clients. Insurers also create liabilities and commit themselves to compensate for
losses occurring to the policyholders on future date. It also plays an important role in process of
capital formation.



NATURE OF INSURANCE
a) Risk sharing and risk transfer:
Insurance is a tool used to share the financial losses that could befall a person or his family should
certain catastrophes take place. Each insured party pays a premium to cover the loss resulting from
such catastrophes. Consider a community where there are 250 houses, each worth Rs. 200000.
Every year, one house burns down, causing a loss of Rs 200000 in total. If each of the 250 owners
contributed Rs. 800 collectively, the common money would total Rs. 200000.This is sufficient to
compensate the owner of a burned-out home. As a result, the risk of one owner is shared by the
village's 250 homeowners.

b) Risk assessment in advance:
Insurance companies are risk bearers. They assess the risk before insuring to charge the amount of
premium.

10. l OM oAR cP SD | 23 41 2 73 5


10
c) Its not gambling or charity:
The uncertainty is changed to certainty by insuring property and life because the insurer promises
to pay a definite sum at damage or death. Insurance is antithesis of gambling. Failure of insurance
amounts to gambling because the uncertainty of loss is always looming. Moreover insurance is not
possible without premium. So it is different from charity because charity is given without
consideration.

d) Huge number of insured people:
It is essential to insure larger number of people or property to make cost of insurance less
consequently premium would also be less.

e) Assists in capital formation:
Insurance provides capital to society. Accumulative funds are invested in productive channels.



ADVANTAGES OF LIFE INSURANCE
1. In the event of death, the settlement is easy. The heirs can collect the moneys quicker, because
of the facility of nomination and assignment. The facility of nomination is now available for some
bank accounts.

2. There is a certain amount of compulsion to go through the plan of savings. In other forms, if
one changes the original plan of savings, there is no loss. In insurance, there is a loss.

3. Certain cannot claim the life insurance moneys. They can be protected against attachments by
courts.

4. There are tax benefits, both in income tax and in capital gains.


5. Marketability and liquidity are better. A life insurance policy is property and can be transferred
or mortgaged. Loans can be raised against the policy. The following tenets help agents to believe
in the benefits of life insurance. Such faith will enhance their determination to sell and their
perseverance.

6. Life insurance is not only the best possible way for family protection. There is no other way.


7. Insurance is the only way to safeguard against the unpredictable risks of the future. It is
unavoidable.

8. The terms of life are hard. The terms of insurance are easy.
9. The value of human life is far greater than the value of property. Only insurance can preserve
it.

11. l OM oAR cP SD | 23 41 2 73 5


11
10. Life insurance is not surpassed by many other savings or investment instrument, in terms of
security, marketability, stability of value or liquidity.

11. Insurance, including life insurance, is essential for the conservation of many businesses, just
as it is in the preservation of homes.

12. Life insurance enhances the existing standards of living.


13. Life insurance helps people live financially solvent lives.


14. Life insurance perpetuates life, liberty and the pursuit of happiness.


15. Life insurance is a way of life.



SEMANTICS
1. Risk: It is defined as an uncertainty of a financial loss. It is the unintentional decline in or
disappearance of value arising from contingency.

2. Policy: It is the document which embodies the insurance contract.


3. Whole life policy: It is the policy under which the amount of policy will be paid only on death
of the insured. Premiums may be payable throughout the life or for a limited period.

4. Endowment policy: Endowment policies entitle the insured to receive the amount of the policy
on his reaching a certain age and premiums also stops. If death occurs earlier, amount of the policy
will be paid at that time and payment of premium will also stop at that time.

5. Claim: It is the amount which an insurer has to pay against a policy.


6. Reinsurance: It refers to placing a part of the risk by an insurer with another insurer. The object
is to reduce the possible loss to be borne by the original insurer, who pays premiums at the ordinary
rates to the reinsurer. Reinsure must pay commission to the original insurer.

7. Premium: A periodic payment made on an insurance policy.


8. Insurance penetration: It is defined as insurance premium as a share of gross domestic product.


9. Insurance density: Insurance density is defined as per capita expenditure on insurance premium
i.e. premium per capita.

12. l OM oAR cP SD | 23 41 2 73 5


12
10. Actuary: The actuary is a specialist who combines an understanding of risks and mathematical
technique to develop financial products to manage these risks, price these products. He helps in
designing insurance plans and then evaluates the financial risk of the company which it takes while
selling an insurance policy.



TYPES OF INSURANCE
Insurance is broadly divided in two segments, based on the nature of insurance, those are:
1. Life Insurance &
2. Non-Life Insurance or General Insurance.


It can be again subdivided into the following categories:
 Fire Insurance.
 Marine Insurance.
 Social Insurance
 Miscellaneous Insurance. (Health insurance, Liability Insurance etc….)



HISTORY OF INSURANCE
For now we know the meaning of insurance, different types of insurance. Now let us know the
history and reasons for and behind different types of insurance.

Insurance has been around for a very long time. Property insurance was the first kind of insurance
ever. In China, it gained popularity around 3000 BC. It all began when Chinese traders and their
investors wanted to make sure they would make money from the commodities they transported
abroad. An insuring partner would pay the owners of the ship and the goods in the event that a ship
was lost at sea. The merchant would be bought by the insurance and sold into slavery until the loss
was made good. This was the case because without investment, a merchant could not afford to
replace the lost commodities or even purchase a ship.

In Babylon, it was also common to see property insurance. In Babylon, traders and investors
engaged into a contract stating that if the trader's goods were stolen, the lender would rescind the
loan. In addition to the customary interest, the dealer who borrowed the money paid an additional
sum for this protection. The lender was able to withstand the losses of the few merchants by
collecting these premiums from a large number of traders. Later, this agreement was expanded to
cover clauses for a family's home and even the insured's demise, leading to the invention of life
insurance. This idea gradually began to permeate to other cultures, such as Greek and Roman.

Since ancient times, communities have pooled some of their resources to help individuals who
suffer loss. Like, about 3500 years ago, Moses instructed the nation of Israel to contribute a portion
of their produce periodically for "the alien resident and the fatherless boy and the widow. Later

13. l OM oAR cP SD | 23 41 2 73 5


13
the origin of credit insurance, which was included in the Code of Hammurabi, a collection of
Babylonian laws said to predate the Law of Moses. Credit insurance means, in ancient times the
ship owners obtained loans from investors to finance their trading expeditions. In case, if a ship
was lost, the owners were not responsible to pay back the loans to the investors. The risk to the
lenders was covered by the interest paid by numerous ship owners, since many ships returned
safely.

Marine insurance was one of the most widely used types of insurance among European countries
by the middle of the 14th century. In Europe, things underwent a significant change in the 17th
century. The Great Fire of London in 1666 made fire insurance necessary.London's Great Fire
raged for four days and nights. 13,200 homes, 89 churches (including Saint Paul's Cathedral), the
Custom House, the Royal Exchange, and numerous other public structures totaled 436 acres.
Hundreds of people died from shock and exposure, even though only six people were killed in the
flames.

By 1688, Edward Lloyd was running a coffeehouse in London. Where, London merchants and
bankers met informally to do business. There financiers who offered insurance contracts to
seafarers wrote their names under the specific amount of risk that they would accept in exchange
for a certain payment, called premium. These insurers came to be known as underwriters.

Finally, in 1769, Lloyd's became a formal group of underwriters that in time grew as an insurance
company.

The concept of insurance developed at a fast pace with the growth of British commerce in the 17th
and 18th century. The first stock companies to engage in insurance were chartered in England in
the year 1720.

In 1735, the first insurance company in the American colonies was founded at Charleston. Later
in the year 1787, fire insurance corporations were formed in New York. Then later in the year
1759, the life insurance corporation was started in Philadelphia, America.

The New York fire which occurred in the year 1835 was the main reason to draw attention to create
reserves to meet unexpected losses. In the year 1837, Massachusetts was the first state to require
companies by law to maintain such reserves. After 1840, life insurance entered a boom period.

The Workmen's Compensation Act of 1897 in Britain required employers to insure their employees
against industrial accidents. Public liability insurance, fostered by legislation, made its appearance
in the 1880s.It attained major importance with the advent of the automobile. Until the 1950s, most
insurance companies in the United States were restricted to provide only one type of insurance,
but then legislation was passed to permit fire and casualty companies to underwrite several classes
of insurance. Many firms have since expanded and also were responsible for many mergers.

14. l OM oAR cP SD | 23 41 2 73 5


14
From this brief accounting of history we can see how insurance came into existence. Fortunately
for us we no longer have to sell ourselves into slavery if our car is stolen nor we have to be scared
of losses due to absence of reserves. However we can be confident that we will be compensated
for our loss. Without people wanting to secure their investments and great tragedies throughout
history we may not have insurance as we know it today resulting in peace of mind.



HISTORY OF INSURANCE INDUSTRY IN INDIA


Insurance has a long history in India. Manu's Manusmrithi, Yagnavalkya's Dharmasastra, and
Kautilya's Arthasastra all make reference to it. The works discuss gathering resources that could
be given again in the event of disasters like fires, floods, epidemics, and famine. This most likely
served as the forerunner to contemporary insurance. In the form of marine trade loans and carriers'
contracts, ancient Indian history has retained the oldest indications of insurance. India's insurance
industry has developed over time with significant influence from other nations, notably England.

Over the past century, India's insurance market has undergone significant development. This sector
of the economy in India exhibits a 360 degree turn. In India, the market began as an open,
competitive one before being nationalized and then returning to being liberalized. This is referred
to as a 360 degree turn. In India, the insurance sector began in the 19th century as a totally private
system with no barriers to foreign entry.

A small number of British insurance companies dominated the market before independence. The
Oriental Life Insurance firm (In Calcutta), a British firm, established life insurance in India for the
first time in 1818. The Bombay Assurance Company and the Madras Equitable Life Insurance
Society thereafter established life insurance in India in 1823 and 1829, respectively. All of these
businesses had operations in India but did not provide life insurance for Indians. The lives of
Europeans living in India were being insured by them there. Some of the later-established
businesses did offer insurance to Indians. However, they were handled in a

15. l OM oAR cP SD | 23 41 2 73 5


15
"substandard" and had to pay a 20% or higher additional premium as a result. In 1870, Bombay
Mutual Life Assurance Society became the first life insurance provider in India, and it offered
standard rates for coverage of Indian lives. Insurance companies were founded as Indian businesses
with strong nationalistic goals in order to spread awareness of insurance and social security through
insurance across diverse societal groups. Triton Insurance firm Ltd., the first general insurance
firm, was founded in 1850. British people owned and ran it.

One of these nationalist-inspired businesses was the Bharat Insurance Company, founded in 1896.
More insurance businesses were founded as a result of the Swadeshi movement in 1905–1907.
Established in 1906 were the United India in Madras, the National Indian and National Insurance
in Calcutta, and the Co-operative Assurance in Lahore. Hindustan Co-operative Insurance
Company was founded in 1907 in a chamber of the Jorasanko, the famed poet Rabindranath
Tagore's residence in Calcutta. During this time, businesses including the Indian Mercantile,
General Assurance, and Swadeshi Life (later Bombay Life) were founded. India did not have any
legislation governing the insurance industry prior to 1912. The Provident Fund Act and the Life
Insurance Companies Act were both passed in 1912.

The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and
periodical valuations of companies should be certified by an actuary. But the Act discriminated
between foreign and Indian companies on many accounts, putting the Indian companies at a
disadvantage.

In the first two decades of the 20th century, the insurance industry experienced significant
expansion. In 1938, there were 176 companies, with a total business-in-force of Rs. 298 crore, up
from 44 companies with a total business-in-force of Rs. 22.44 crore. Many financially problematic
businesses that were floated with the explosion of insurance companies failed spectacularly. The
Insurance Act of 1938 was the first piece of legislation to strictly impose governmental control
over the insurance industry and to regulate both life and non-life insurance. A bill to alter the Life
Insurance Act of 1938 was filed in the Legislative Assembly in 1944, which gave rise to a growing
call for the nationalization of the life insurance sector. However, it wasn't until long later, on
January 19, 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 carried out in two stages; first, an Ordinance was used to take control of the
firms' management, and secondly, a comprehensive bill was used to take control of both the
ownership and the management of the enterprises. The Life Insurance Corporation Act was
approved by the Indian Parliament on June 19, 1956, and the Life Insurance Corporation of India
was established on September 1, 1956, with the aim of extending life insurance much more broadly
and, in particular, to rural areas in order to reach all insurable persons in the nation and offer them
adequate financial protection at a fair price. The general insurance industry was subsequently
nationalized in 1972. only in private in 1999

16. l OM oAR cP SD | 23 41 2 73 5


16
insurance companies have been allowed back into the business of insurance with a maximum of
26% of foreign holding.

Aside from its corporate office, LIC had 212 branch offices, 33 divisional offices, and 5 zonal offices by 1956.
The necessity to expand operations and establish a branch office at each district headquarters was felt in the
later years since life insurance contracts are long-term contracts and during the currency of the policy it
requires a variety of services. The LIC underwent reorganization, and numerous new branch offices were
established. Reorganization led to the transfer of servicing responsibilities to the branches, which were also
given accounting unit status. The corporation's performance was greatly improved by it. As can be seen, the
organization crossed the $100 billion threshold in 1957 from roughly $200 billion in new business. only in
the year It took LIC 10 more years to reach the milestone of $2,000,000,000 in new business after 1969–1970.
However, due to reorganization that took place in the early 1980s, by 1985–1986 LIC had already exceeded
7000.00 crores. Confident in new policy The current LIC organization consists of the corporate headquarters,
113 divisional offices, 8 zonal offices, 2048 completely computerized branch offices, and 1381 satellite offices.
The 113 divisional offices covered by LIC's wide area network are connected to all the branches via a metro
area network. In order to provide an online premium collection service in a few cities, LIC has partnered with
a few banks and service providers. The ECS and ATM premium payment options offered by LIC increase
client convenience. In addition to online kiosks and IVRS, info centers have also been established in numerous
additional cities, including Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, and
Pune. The opening of LIC's SATELLITE SAMPARK offices was motivated by a desire to make services
easily accessible to policyholders. The satellite offices are more compact, leaner, and situated closer to the
client. . The digitalized records of the satellite offices will facilitate anywhere servicing and many
other conveniences in the future.

The industry took a turn for the worst after independence. It changed into a state-owned monopoly.
The business began to have a problem like fraud. As a result, numerous laws were put in place to
lessen and manage the issues in the sector. Insurance was then made nationwide. S. D. Deshmukh,
the finance minister at the time, announced the nationalization of the life insurance industry in
1956. The general insurance industry followed in 1972. Private insurance businesses were only
permitted to reenter the insurance market in 1999 with a maximum 26% foreign ownership.

Even in India's liberalized insurance market, LIC is the industry leader in life insurance and is
rapidly setting new benchmarks for growth. Over one billion insurance have been issued by LIC
so far this year. By the 15th of October 2005, it had reached the milestone of issuing 1,01,32,955
new policies, reflecting a robust growth rate of 16.67% over the same time the year before.

17. l OM oAR cP SD | 23 41 2 73 5


17
Since that time, LIC has achieved numerous milestones and broken numerous performance records
in the life insurance industry. The same motivations that drove the development of insurance in
this nation also drive us at LIC to spread this message of safety, illuminating the lamps of security
in as many homes as we can and assisting people in securing their families.



INDIAN LIFE INSURANCE INDUSTRY

18. l OM oAR cP SD | 23 41 2 73 5


18


SOURCE: IBEF

19. l OM oAR cP SD | 23 41 2 73 5


19
World Insurance Marketplace




World Life and Nonlife Insurance In 2021

Outside the United States, the insurance industry is divided into life and nonlife (or general
insurance), rather than life/annuity and property/casualty. Swiss Re’s sigma
3/2021, World insurance: the recovery gains pace is based on direct premium data from
147 countries, with detailed information on the largest 88 markets. World insurance
premiums fell 1.3 percent in 2020, adjusted for inflation, to $6.3 trillion. Nonlife premiums
grew 1.5 percent in 2020, adjusted for inflation, reaching $3.5 trillion. Life insurance
premiums fell 4.4 percent, adjusted for inflation, to $2.8 trillion. expects the global
economy to recover strongly in 2021 from the COVID-19 pandemic due to the rapid pace
of vaccinations and global fiscal stimulus. However, the recovery may be impacted by the
problem of emerging virus variants. Following a drop of 2.9 percent in real growth in 2020,
Swiss Re estimates total global insurance premiums will rise 3.4 percent in real terms in
2021 and slow to 3.3 percent in 2022 and 3.1 percent in 2023. Slower economic growth
in 2022 and 2023 is expected as a result of global supply chain issues, labor shortages
and high energy prices. These factors will increase inflation in the near term.


Top 10 Countries by Life and Nonlife Direct Premiums Written, 20221
(US$ millions)

20. l OM oAR cP SD | 23 41 2 73 5


20
(1) Before reinsurance transactions.
(2) Includes accident and health insurance.
(3) Nonlife premiums include state funds; life premiums are net premiums and include an
estimate of group pension business.
(4) Estimated or provisional.
(5) Financial year April 1, 2021 – March 31, 2022.
(6) Nonlife premiums are gross premiums, including reinsurance.


Source: Swiss Re, sigma, No. 4/2022.


View Archived Tables




World Life and Nonlife Insurance Direct Premiums Written, 2021


(US$ billions)







(1) Before reinsurance transactions.
(2) Includes accident and health insurance.


Source: Swiss Re, sigma, No. 4/2022.
View Archived Graphs

21. l OM oAR cP SD | 23 41 2 73 5


21
World Life and Nonlife Insurance Direct Premiums Written, 2019-2021
(US$ millions)






(1) Before reinsurance transactions.
(2) Includes accident and health insurance.


Source: Swiss Re, sigma database, sigma No. 4/2022.


View Archived Tables

22. l OM oAR cP SD | 23 41 2 73 5


22
Top 10 Countries by Total Insurance Premiums per Capita and Percent of Gross Domestic
Product (GDP), 2021 (1)






(1) Includes nonlife and life insurance and cross-border business.
(2) April 1, 2021 to March 31, 2022.



Source: Swiss Re, sigma, No. 4/2022.
View Archived Tables

23. l OM oAR cP SD | 23 41 2 73 5


23
LIFE INSURANCE
Life Insurance Corporation of India (LIC) is an Indian State owned insurance group
and Investment Corporation owned by the Government of India.

The Life Insurance Corporation of India was founded in 1956 when the Parliament of India passed
the Life Insurance of India Act that nationalized the insurance industry in India. Over 245
insurance companies and provident societies were merged to create the state owned Life Insurance
Corporation.

As of 2019, it had total life fund of ฀ 28,28,320.12 crore and total number of policies sold coming
in at ฀214.33 lakh that year (2018-19). LIC settled 259.54 lakh claims in 2018-19. LIC has 29
crore policy holders.


Growth as a monopoly
From its creation, the Life Insurance Corporation of India, which commanded a monopoly of
soliciting and selling life insurance in India, created huge surpluses and by 2006 was contributing
around 7% of India's GDP.

The corporation, which started its business with around 300 offices, 5.7 million policies and
a corpus of INR 45.9 crores (US$92 million as per the 1959 exchange rate of roughly ฀5 for
US$1),
[7]
had grown to 25,000 servicing around 350 million policies and a corpus of over
฀800,000 crore (US$120 billion) by the end of the 20th century.

In August 2000, the Indian Government embarked on a program to liberalize the insurance sector
and opened it up for the private sector. LIC emerged as a beneficiary from this process with robust
performance, albeit on a base substantially higher than the private sector.

In 2013 the first year premium compound annual growth rate (CAGR) was 24.53% while total life
premium CAGR was 19.28% matching the growth of the life insurance industry and outperforming
general economic growth.

Operations
Today LIC functions with 2048 fully computerized branch offices, 8 zonal offices, around 113
divisional offices, 2,048 branches and 1408 satellite offices and the Central Office; it also has 54
customer zones and 25 metro-area service hubs located in different cities and towns of India. It
also has a network of 1,537,064 individual agents, 342 Corporate Agents, 109 Referral Agents,
114 Brokers and 42 Banks for soliciting life insurance business from the public.

Now LIC also has the 1899 branches of IDBI bank at its disposal thus it can carry out its insurance
business through these branches of the bank.

24. l OM oAR cP SD | 23 41 2 73 5


24
Slogan
LIC's slogan Yogakshemam vahaamyaham is in Sanskrit which loosely translates into English as
"Your welfare is our responsibility". This is derived from ancient Hindu text, the Bhagavad Gita's
9th chapter, 22nd. The slogan can be seen in the logo, written in Devanagari script. This line means
"I carry what they lack, and I preserve what they have" (refers to Krishna speaking to Arjuna),
when taken in context of the entire verse.



Awards and recognition

 The Economic Times Brand Equity Survey 2012 rated LIC as the No. 6 Most Trusted Service
Brand of India.
 From the year 2006, LIC has been continuously winning the Readers' Digest Trusted brand
award.
 Voted India's Most Trusted brand in the BFSI category according to the Brand Trust Report
for 4 continuous years - 2011-2014 according to the Brand Trust Report.
 7th Annual Greentech HR Platinum Award 2017 for Training Excellence (3rd time in a row)
 Certificate of Appreciation by the Jury of BML Munjal Award 2017
 Golden Peacock National Training Award in Training for the year 2018 (3rd time in a row)
 Global Best Employer Brand Award 2017 for Excellence in Training



Employees & agents
As on 31 March 2021, LIC had 111,979 employees, out of which 24,510 were women.



Category of employees

Total Number

No. of Women

Class-I Officers

32,803

7,041

Class-II Development Officers

22,830

1,148

Class III/IV employees

56,346

16,321

Total

111,979

24,510

25. l OM oAR cP SD | 23 41 2 73 5


25
Agency strength
The total number of Agents on our Roll is 11,48,811 as at 31.03.2021 as against 11,31,181 as on
31.03.2020. The number of Active Agents is 10,71,945 as at 31.03.2021 as compared to 10,46,484
as on 31.03.2020.

IDBI Bank Employees
Now IDBI bank Employees have also joined the work force of LIC. However, they are not treated
as same as LIC employees.

Initiatives
Golden Jubilee Foundation LIC Golden Jubilee Foundation was established in 2006 as a charity
organization. This entity has the aim of promoting education, alleviation of poverty, and providing
better living conditions for the under privileged. Out of all the activities conducted by the
organization, a Golden Jubilee Scholarship award is the best known. Each year, this award is given
to the meritorious students in standard XII of school education or equivalent, who wish to continue
their studies and have a parental income less than ฀100,000 (US$1,400).

Holdings
LIC holds shares worth about ฀2.33 lakh crore in all the Nifty companies put together, but it
lowered its holding in a total of 27 Nifty companies during the quarter.


The cumulative value of LIC holding in these 27 companies fell by little over ฀8,000 crore during
the quarter shows the analysis of changes in their shareholding patterns.


Individually, LIC is estimated to have sold shares worth ฀500-1,000 crore in each of Mahindra &
Mahindra, HDFC Bank, ICICI Bank, Tata Motors, L&T, HDFC, Wipro, SBI, Maruti Suzuki, Dr
Reddy’s and Bajaj Auto.

The insurance behemoth also trimmed holdings in Ambuja Cements, Cipla, TCS, Lupin and Asian
Paints. A marginal decline was also witnessed in its stakes in companies such as IDFC, Hindustan
Unilever, Grasim, ACC, BPCL, Bank of Baroda, Punjab National Bank, Sun Pharma and Tata
Power.


On the other hand, LIC further ramped up its stake in a total of 14 Nifty constituents with purchase
of shares worth an estimated ฀4,000 crore. The major companies where LIC has raised its stake
include Infosys, RIL, Coal India Ltd and Cairn India. Other such companies are ITC, Power Grid
Corp, NTPC, Siemens, Bharti Airtel and Hero MotoCorp.
The state-run insurer also marginally hiked its exposure in Ultratech, Gail India, Ranbaxy, Kotak
Mahindra Bank and HCL Technologies, while its shareholding remained almost unchanged in
companies like ONGC, Tata Steel, BHEL and Reliance Infra.

26. l OM oAR cP SD | 23 41 2 73 5


26


Among the Nifty companies, LIC’s holding in terms of value in 2012 were estimated to be the
highest in ITC (฀27,326 crore), followed by RIL (฀21,659 crore), ONGC (฀17,764 crore), SBI
(฀17,058 crore), L&T (฀16,800 crore), and ICICI Bank (฀10,006 crore).

The share price drop in ITC on 18 July 2017 had caused LIC a major loss of around 7000 Crores.
LIC now also holds 51% stake in IDBI bank thus making it the only insurer in India to own a bank
, since regulations prohibit insurers from holding more than 15% stake in any company ,LIC will
have to decide a timeline for paring its stake in IDBI bank also LIC will have to pare its stake in
LIC housing finance Ltd as a company cannot be promoter of 2 finance companies carrying out
same housing finance business so either LIC has to sell its stake in LIC housing or close down
housing business of IDBI bank.



GENERAL INSURANCE

General insurance or non-life insurance policies, including automobile and homeowners policies,
provide payments depending on the loss from a particular financial event. General insurance is
typically defined as any insurance that is not determined to be life insurance. It is called property
and casualty insurance in the United States and Canada and non-life insurance in Continental
Europe.


In the United Kingdom, insurance is broadly divided into three areas: personal lines, commercial
lines and London market.


The London market insures large commercial risks such as supermarkets, football players and
other very specific risks. It consists of a number of insurers, reinsurers, P&I Clubs, brokers and
other companies that are typically physically located in the City of London. Lloyd's of London is
a big participant in this market. The London market also participates in personal lines and
commercial lines, domestic and foreign, through reinsurance.


Commercial lines products are usually designed for relatively small legal entities. These would
include workers' compensation (employer’s liability), public liability, product liability,
commercial fleet and other general insurance products sold in a relatively standard fashion to many
organizations. There are many companies that supply comprehensive commercial insurance
packages for a wide range of different industries, including shops, restaurants and hotels. Personal
lines products are designed to be sold in large quantities. This would include autos (private
car), homeowners (household), pet insurance, creditor insurance and others.

27. l OM oAR cP SD | 23 41 2 73 5


27
ACORD, which is the insurance industry global standards organization, has standards for personal
and commercial lines and has been working with the Australian General Insurers to develop those
XML standards, standard applications for insurance, and certificates of currency.


AWARDS
In 2012, The General and Ken Roberts Productions received three Telly Awards in the Animation
category. A Silver Award was won for the Baseball ad, and Bronze Awards were won for Football
and Snowboard.



CONTRIBUTION OF THE INSURANCE SECTOR TO INDIAN ECONOMY


Moody's Investors Service said India's
insurance and reinsurance sectors will grow
strongly driven by strong economic growth and
evolving regulatory regime. It said robust GDP
expansion, coupled with current low insurance
penetration, should support double digit growth
for the non-life sector over the next 3-4 years.
During fiscal 2018, total gross premiums for the
non-life and life insurance sectors grew 11.5 per
cent to Rs. 6.1 lakh crore (USD 94 billion), bringing the 5 year compound annual growth rate
(CAGR) to 11 per cent.
"India's strong economy and evolving regulatory regime continue to support growth for its
insurance and reinsurance sectors," Moody's said in a report titled Insurance - India: Continued
regulatory evolution is credit positive for India's insurance sector.
Moody's said it expects India's real GDP to expand by 7.4 per cent and 7.3 per cent in fiscal 2019
and 2020, making the Indian economy one of the world's fastest-growing.
"The Insurance Regulatory and Development Authority of India (IRDAI) is proactively
introducing regulations that will support insurers' balance sheets and improve their access to
capital, a credit positive," Moody's Assistant VP and Analyst Mohammed Londe said.

Liberalization of the reinsurance sector - with the admission of foreign reinsurers since 2017 and
IRDAI's steps to ensure that they can compete with incumbents - will specifically benefit the non-
life sector. Regulatory reforms will also improve the sector's capital strength, Moody's said. In
2015, IRDAI raised the ceiling on foreign ownership of Indian insurers to 49 per cent from 26 per
cent, encouraging global players to buy holdings NSE 0.10 % in local entities.

28. l OM oAR cP SD | 23 41 2 73 5


28
PROGRESS IN INSURANCE BUSINESS

Besides, the government's launch of a new program in 2018 to provide health insurance for 100
million families is credit positive as it will help grow health premiums and provide insurers with
cross-selling opportunities, it noted.
State-run insurance giant, Life Insurance Corporation (LIC) has further increased its dominance in
India's life insurance market with a 6 per cent increase in the market share between Aprils to
September 2019. In the overall insurance market in India, LIC's share now stands at 72 per cent
where several state-run life insurers are increasingly outdoing their private competitors in getting
new businesses.

LIC registered the growth of 18 per cent in September 2019 as compared to last year and an
impressive growth of 42 per cent in the first half of FY20, the latest data released by insurance
regulators IRDAI showed.

"Recent months have seen strong new business growth for LIC taking its market share to
72%…Retail business has shown strong traction with a 22 percent growth in the first half of the
fiscal, on the back of new launches in the individual single premium segment," according to a
report by brokerage Jefferies.

However, the ongoing economic slowdown seems to have finally caught up with the insurance
sector. Individual Annual Premium Equivalent (APE) declined 3% in September as against the
same period last year September as compared to 11-27% year on year growth in April to August
2019.

APE is a metric which is used when the sales contain both single premium and regular premium
businesses. Also, APE is a measure used for comparison of life insurance revenue by normalizing
policy premiums into the equivalent of regular annual payments.

According to the brokerage report by Kotak Securities, "Even the high-growing HDFC Life
declined after five months of consistent high growth. SBI Life and Max Life continued to moderate
for the second consecutive month." The report also said that, "Net inflows to equity mutual funds
dropped sharply month-on-month as well."

During the same period, new business by life insurers grew 15 per cent in September as against
last year, while registering a growth of 35 per cent between April and September, as per the
sources. Against the average industry growth, private sector life insurers could only register a
growth of 9 per cent in September as against last year, the data showed.

"New Business Premium (NBP) and total Annualized Premium Equivalent (APE) grew at a slower
pace of 9 per cent and 4 per cent, respectively, in Sep'19 for private life insurers," as per a report

29. l OM oAR cP SD | 23 41 2 73 5


29
by ICICI Securities. As per the brokerage, SBI Life and Bajaj Allianz were the outstanding
performers of the first half of fiscal 2019 while HDFC Life registered faltering numbers in the
reported period.

"HDFC Life (HDLI) reported 16 per cent and 20 per cent decline in total and individual APE
which would be on account of a high base and possible decline in guaranteed savings products
under declining interest rates," ICICI Security report said. "Bajaj Allianz and SBI Life were
relative outperformers in September. SBI Life maintained leadership in the number of individual
policies which grew 13 per cent compared to 5 per cent for private life insurers."




NATIONALIZATION
THE LIFE INSURANCE CORPORATION OF INDIA: 1956

This marked the beginning of the nationalization of the Indian life insurance industry. On January
20, 1956, 43 designated custodians took control of all life insurance firms. The custodians were
senior professionals with extensive insurance industry experience who directly answered to the
Finance Ministry. They were primarily concerned from the beginning with the challenging task of
permanently managing the sector and providing uninterrupted services to policyholders. The actual
merging process had to wait for legislation. Prior to the establishment of the Life Insurance
Corporation, which was under the overall management and control of the Ministry of Finance, the
custodians oversaw the insurance businesses. The Ordinance called for the control of 154 Indian
insurers to be transferred, 75 provident societies and 16 non-Indian insurers. These arrangements
were made to make sure that the policyholders would not experience any kind of inconvenience.
With the government taking over management, efforts were made to develop a standard, uniform
premium rate, as well as service and working conditions and, most importantly, to foster a sense
of camaraderie. The company, a body corporate, must have no more than 15 members who are
chosen by the Central Government, with one of them serving as chairman. The central government
contributed Rs 5 crore as the corporation's capital.

30. l OM oAR cP SD | 23 41 2 73 5


30
INDIAN INSURANCE SECTOR REFORMS – R N MALHOTRA

The formation of the Malhotra Committee in 1993 initiated reforms in the Indian insurance sector
and is considered as one of the milestones in the history of Insurance in India.
The aim of the Malhotra Committee was to assess the functionality of the Indian insurance sector.
This committee was also in change of recommending the future path of insurance in India.

The Malhotra Committee attempted to improve various aspect of the insurance sector, making
them more appropriate and effective for the Indian market.

The Insurance Regulatory and Development Authority Act of 1999 brought about several crucial
policy changes in the insurance sector of India. It led to the formation of the Insurance Regulatory
and Development Authority (IRDA) in 2000.

The goals of the IRDA are to safeguard the interests of insurance policyholders, as well as to
initiate different policy measures to help sustain growth in the Indian insurance sector.

In 1994, the committee submitted the report and some of the key recommendations included:


(1) STRUCTURE
 Government stake in the Insurance Companies to be brought down to 50%.
 Government should take over the holdings of GIC and its subsidiaries so that these
subsidiaries can act as independent corporations.
 All the insurance companies should be given greater freedom to operate

(2) COMPETETION
 Private Companies with minimum paid up capital of Rs.1 bn should be allowed to enter
the industry.
 No Company should deal in both Life and General Insurance through a single entry.
 Foreign Companies may be allowed to enter the industry in collaboration with the domestic
companies.
 Postal Life Insurance should be allowed to operate in the rural market.
 Only one State Level Life Insurance Company should be allowed to operate in each state.

(3) REGULATORY BODY
 The Insurance Act should be changed
 An Insurance Regulatory Body should be set up.
 Controller of Insurance (Currently a part from the Finance Ministry) should be made
independent

31. l OM oAR cP SD | 23 41 2 73 5


31
(4) INVESMENTS
 Mandatory Investments of LIC Life Fund in government securities to be reduced from75%
to 50%.
 GIC and its subsidiaries are not to hold more than 5% in any company (There current
holdings to be brought down to this level over a period of time).



(5) CUSTOMER SERVICE
 LIC should pay interest on delays on payments beyond 30 days.
 Insurance Companies must be encouraged to set up unit linked pension plans
 Computerization of operations and updating of technology to be carried out in the insurance
industry.

The committee emphasized that in order to improve the customer service and increase the coverage
of insurance industry should opened up to competition. But at the same time, the committee felt
the need to exercise caution as any failure on the part of new players could ruin the public
confidence in the industry. Hence, it was decided to allow competition in a limited way by
stipulating the minimum capital requirement of Rs. 100 crores. The committee felt the need to
provide greater autonomy to insurance companies in order to improve their performance and
enable them to act as independent companies with economic motives. For this purpose, it had
proposed setting up an independent regulatory body.



Important Milestones in the history of Indian Insurance Industry
 1993 Malhotra Committee established
 1994 Recommendations of the Malhotra Committee published
 1995 Mukherjee Committee established
 1996 Setting up of (interim) Insurance Regulatory Authority (IRA) recommendations of
the IRA
 1997 Mukherjee Committee Report submitted but not made public
 1997 The government gives better autonomy to LIC, GIC, and its subsidiaries with regard
to the restructuring of boards and flexibility in investment norms aimed at channeling funds
to the infrastructure sector
 1998 the cabinet decides to allow 40 percent foreign equity in private insurance companies
26% to the foreign companies and 14% to Non Resident Indians (NRI’s) and Foreign
Institutional Investors (FII’s)
 1999 The standing Committee headed by Murali Deora decides that the foreign equity in
private insurance should be limited to 26%. The IRA bill is renamed the insurance
regulatory & Development Authority Bill
 1999 Cabinet clears the Insurance regulatory and Development Authority Bill
 2000 President gives assent to the Insurance regulatory and Development Authority Bill

32. l OM oAR cP SD | 23 41 2 73 5


32
LIBERALIZATION
OPENING UP OF INSURANCE SECTOR – 1999 THE INSURANCE
REGULATORY AND DEVELOPMENT AUTHORITY (IRDA)
The IRDA Bill was approved by Parliament in December 1999, which marked the beginning of
reforms in the insurance industry. Since being established as a legislative agency in April 2000,
the IRDA has meticulously adhered to its schedule for developing regulations and certifying
private insurance businesses. The IRDA's online service for issuing and renewing licenses to
agents was launched as the other choice made concurrently to give the supporting systems to the
insurance sector, and in particular the life insurance companies. The licensing of training institutes
has also made sure that insurance companies have a trained workforce of insurance agents to offer
their goods, which are anticipated to be released by the beginning of next year. Since being set up
as an independent statutory body the IRDA has put in a framework of globally compatible
regulations. In the private sector 14 life insurance companies have been registered.



ENTRY OF PRIVATE COMPANIES
Private businesses can now operate in India's insurance sector according to the IRDA Act. But
before they are allowed to write business, they need to get an IRDA license. A domestic private
company must be incorporated in line with the Companies Act of 1956 and have a minimum
investment capital of $20 million in order for its licensing application to be taken into
consideration. The Registration on Indian Insurance Companies Regulations, released by the
IRDA 2000, outlines the precise licensing standards that Private Indian Companies must meet.



INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY
(IRDA) 1999
An independent, statutory organization called the Insurance Regulatory and Development
Authority of India (IRDAI) is in charge of overseeing and advancing the insurance and reinsurance
sectors in India. The Insurance Regulatory and Development Authority Act, 1999, a Parliamentary
Act adopted by the Government of India, established it. The agency relocated from Delhi to
Hyderabad, Telangana, where it now has its main offices. IRDAI is a 10-member organization,
consisting of the chairman and four part-time and five full-time members chosen by the Indian
government.



HISTORY

The writings of Manu (Manusmrithi), Yagnavalkya (Dharmasastra), and Kautilya (Arthashastra),
who studied the pooling of resources for redistribution after fires, floods, diseases, and hunger, all
made reference to insurance. The Oriental Life Insurance Company was founded in Calcutta in
1818, marking the start of the life insurance industry; the business failed in 1834. Madras Equitable
started offering life insurance in the Madras Presidency in 1829.

33. l OM oAR cP SD | 23 41 2 73 5


33
Bombay Mutual (1871), Oriental (1874), and Empire of India (1897) were all established in the
Bombay Presidency after the British Insurance Act was passed in 1870. British businesses
dominated the era.


The Indian government started disseminating insurance firm returns in 1914. The first law
governing life insurance was the Indian Life Assurance Companies Act of 1912. The Indian
Insurance Companies Act, which includes provident insurance societies, was passed in 1928 to
give the government the ability to compile statistical data on the life and non-life insurance
business undertaken in India by Indian and foreign insurers. The Insurance Act, 1938, which was
passed in 1938, combined and updated the existing laws and included extensive clauses to regulate
insurers' operations.


The Insurance Amendment Act of 1950 abolished principal agencies, but the level of competition
was high and there were allegations of unfair trade practices. The Government of India decided to
nationalize the insurance industry.


An ordinance was issued on 19 January 1956, nationalizing the life-insurance sector, and the Life
Insurance Corporation was established that year. The LIC absorbed 154 Indian and 16 non-
Indian insurers and 75 provident societies. The LIC had a monopoly until the late 1990s, when
the insurance industry was reopened to the private sector.


The Industrial Revolution in the West and the expansion of maritime trade throughout the 17th
century marked the beginning of general insurance in India. It originated in Calcutta in 1850 with
the founding of the Triton Insurance Company, and it came as a result of British rule. The first
business to write all classes of general insurance was founded in 1907 and was called Indian
Mercantile Insurance. The General Insurance Council, a division of the Insurance Association of
India, was established in 1957 and created a code of ethics for fairness and ethical corporate
behaviour.


Eleven years later, the Insurance Act was amended to regulate investments and set minimum
solvency margins and the Tariff Advisory Committee was established.


The insurance sector was nationalized on January 1, 1973, thanks to the General Insurance
Business (Nationalization) Act, which was passed in 1972. The National Insurance Company, New
India Assurance Company, Oriental Insurance Company, and United India Insurance Company
were formed through the merger of 177 insurance providers. Incorporated in 1971, The General
Insurance Corporation of India became operational on January 1, 1973.

34. l OM oAR cP SD | 23 41 2 73 5


34
The re-opening of the insurance sector began during the early 1990s. In 1993, the government set
up a committee chaired by former Reserve Bank of India governor R. N. Malhotra to propose
recommendations for insurance reform complementing those initiated in the financial sector. The
committee submitted its report in 1994, recommending that the private sector be permitted to enter
the insurance industry. Foreign companies should enter by floating Indian companies, preferably
as joint ventures with Indian partners.


Following the recommendations of the Malhotra Committee, in 1999 the Insurance Regulatory
and Development Authority (IRDA) were constituted to regulate and develop the insurance
industry and were incorporated in April 2000. Objectives of the IRDA include promoting
competition to enhance customer satisfaction with increased consumer choice and lower premiums
while ensuring the financial security of the insurance market.


The IRDA opened up the market in August 2000 with an invitation for registration applications;
foreign companies were allowed ownership up to 26 percent. The authority, with the power to
frame regulations under Section 114A of the Insurance Act, 1938, has framed regulations ranging
from company registrations to the protection of policyholder interests since 2000.


In December 2000, the subsidiaries of the General Insurance Corporation of India were
restructured as independent companies and the GIC was converted into a national re-insurer.
Parliament passed a bill de-linking the four subsidiaries from the GIC in July 2002. There are 28
general insurance companies, including the Export Credit Guarantee Corporation of India and
the Agriculture Insurance Corporation of India, and 24 life-insurance companies operating in the
country. With banking services, insurance services add about seven percent to India’s GDP.


In 2013 the IRDAI attempted to raise the foreign direct investment (FDI) limit in the insurance
sector to 49 percent from its current 26 percent. The FDI limit in the sector was raised to 100
percent according budget 2019.



STRUCTURE
Section 4 of the IRDAI Act 1999 specifies the authority's composition. It is a ten-member body
consisting of a chairman, five full-time and four part-time members appointed by the government
of India. At present (1 Sept, 2018), the authority is chaired by Dr. Subhash C. Khuntia and its full-
time members are Mrs. T. L. Alamelu, K. Ganesh, Pournima Gupte, Praveen Kutumbe and Sujay
Banarji.

35. l OM oAR cP SD | 23 41 2 73 5


35
FUNCTIONS

The functions of the IRDAI are defined in Section 14 of the IRDAI Act, 1999, and include:

 Issuing, renewing, modifying, withdrawing, suspending or cancelling registrations
 Protecting policyholder interests
 Specifying qualifications, the code of conduct and training for intermediaries and agents
 Specifying the code of conduct for surveyors and loss assessors
 Promoting efficiency in the conduct of insurance businesses
 Promoting and regulating professional organizations connected with the insurance and re-
insurance industry
 Levying fees and other charges
 Inspecting and investigating insurers, intermediaries and other relevant organizations
 Regulating rates, advantages, terms and conditions which may be offered by insurers not
covered by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of
1938)
 Specifying how books should be kept
 Regulating company investment of funds
 Regulating a margin of solvency
 Adjudicating disputes between insurers and intermediaries or insurance intermediaries
 Supervising the Tariff Advisory Committee
 Specifying the percentage of premium income to finance schemes for promoting and
regulating professional organizations
 Specifying the percentage of life- and general-insurance business undertaken in the rural or
social sector
 Specifying the form and the manner in which books of accounts shall be maintained, and
statement of accounts shall be rendered by insurers and other insurer intermediaries.



INDIAN INSURANCE INDUSTRY: NEW AVENUES FOR GROWTH 2012:
The potential of the Indian insurance business is enormous, with an annual growth rate of 15-20%
and the biggest number of active life insurance contracts. The Indian insurance market's overall
size (2004–2005) was pegged at Rs. 450 billion (about $10 billion). Government sources estimate
that the banking and insurance sectors contribute 7% of the nation's GDP, with the gross premium
collection accounting for a sizeable portion of this. The state-owned Life Insurance Corporation
(LIC) has 8% of GDP in investment funds available. Only 20% of India's entire insurable
population is currently covered by various life insurance plans, and penetration rates for health and
other non-life insurances are also far lower than those seen globally. These facts indicate the of
immense growth potential of the insurance sector.

36. l OM oAR cP SD | 23 41 2 73 5


36
With the end of the government monopoly and the passing of the Insurance Regulatory and
Development Authority (IRDA) Bill, which removed all entry barriers for private players and
opened the market to foreign players with some restrictions on direct foreign ownership, 1999 saw
a revolution in the Indian insurance sector. Although the current regulation allows foreign partners
to own up to 26% of the equity in an insurance firm, a proposal to raise this threshold to 49% is
now being considered by the government. 21 private enterprises have received licenses since the
insurance industry was opened to foreign investment in 1999, when it reached 8.7 billion rupees.

Innovative products, smart marketing, and aggressive distribution have enabled fledgling private
insurance companies to sign up Indian customers faster than anyone expected. Indians, who had
always seen life insurance as a tax saving device, are now suddenly turning to the private sector
and snapping up the new innovative products on offer.

In spite of fierce competition from private insurers, the life insurance sector in India grew by an
astonishing 36%, with premium income from new business reaching Rs. 253.43 billion in the fiscal
year 2004–2005. According to the publication Indian Insurance Industry: New Avenues for
Growth 2012, the state-run insurance giant LIC saw a 21.87% increase in business in 2004–2005,
bringing its total revenue to Rs. 197.86 billion. Its market share continued to decline despite this,
as private competitors increased their revenue by 129% from Rs. 24.29 billion in 2003-04 to Rs.
55.57 billion in 2004-05.

Though LIC's market share decreased from 87.04 to 78.07% in the most recent fiscal year (2004-
2005), despite an increase in overall business volume. In a single year, the 14 private insurers saw
an increase in market share from 13% to 22%. The data for the first two months of the fiscal year
2005–2006 also show that the share of private insurers is increasing. The LIC's share for this time
period has decreased even more to 75%, while over 24% has been taken by private players. There
are currently 12 general insurance companies, including four from the public sector and eight from
the private sector. Private insurance firms are thought to hold a 10% market share for non-life
insurance overall. Though the focus of this market research report is on the potential growth on
the Indian Insurance Sector, it also talks about the market size, market segmentation, and key
developments in the market after 1999.

37. l OM oAR cP SD | 23 41 2 73 5


37
INTRODUCTION TO LIC
Life Insurance Corporation of India (LIC) (Hindi: भारतीय जीवन बीमा ि नगम) is the largest
state-owned insurance group in India, and also the country's largest investor. It is fully owned by
the Government of India. It also funds close to 24.6% of the Indian Government's expenses. It has
assets estimated of 13.25 trillion (US$264.34 billion). It was founded in 1956 with the merger of
243 insurance companies and provident societies.

The Life Insurance Corporation of India is headquartered in Mumbai, the country's financial and
commercial hub. It currently has 8 zonal offices, 113 divisional offices, 3500 servicing offices,
including 2048 branches, 54 customer zones, 25 metro area service hubs, and a number of satellite
offices spread across India. It also has a network of 13,37,064 individual agents, 242 corporate
agents, 79 referral agents, and more.

"Yogakshemam Vahamyaham"—Your welfare is our responsibility—is the LIC's catchphrase.
Amol Barate, a member of parliament, brought up the issue of insurance fraud by proprietors of
private insurance businesses in 1955. Ram Kishan Dalmia, owner of the Times of India newspaper
and one of the richest businessmen in India, was sentenced to two years in prison as a result of the
subsequent investigations. Finally, on 1956-06-19, the Indian Parliament approved the Life
Insurance of India Act, and on 1956-09-01, the Life Insurance Corporation of India was established
by merging the life insurance operations of 245 private life insurers and other life insurance service
providers. The Industrial Policy Resolution of 1956, which established a framework for expanding
state power, led to the nationalization of the life insurance industry in India. control over at least
seventeen sectors of the economy, including the life insurance.

Over the course of its almost 50-year existence, the Life Insurance Corporation of India, which
held the exclusive right to solicit and sell life insurance in India, generated enormous surpluses
and contributed roughly 7% of the country's GDP in 2006. The Corporation, which began
operations in 1959 with approximately 5 rupees to 1 US dollar and 300 offices, 5.7 million policies,
and a corpus of INR 459 million (US$ 92 million), has expanded to 25000 offices serving about
350 million policies and a corpus of over 8 trillion (US$159.6 billion).



HISTORY
The Oriental Life Insurance Company, the first corporate entity in India offering life insurance
coverage, was established in Calcutta in 1818 by Bipin Behari Dasgupta and others. Europeans in
India were its primary target market, and it charged Indians heftier premiums. The Bombay Mutual
Life Assurance Society, formed in 1870, was the first native insurance provider.

38. l OM oAR cP SD | 23 41 2 73 5


38
Other insurance companies established in the pre-independence era included
 Bharat Insurance Company (1896)
 United India (1906)
 National Indian (1906)
 National Insurance (1906)
 Co-operative Assurance (1906)
 Hindustan Co-operatives (1907)
 Indian Mercantile
 General Assurance
 Swadeshi Life (later Bombay Life)


The first 150 years were marked mostly by turbulent economic conditions. It witnessed, India's
First War of Independence, adverse effects of the World War I and World War II on the economy
of India, and in between them the period of worldwide economic crises triggered by the Great
depression. The first half of the 20th century also saw a heightened struggle for India's
independence. The aggregate effect of these events led to a high rate of bankruptcies and
liquidation of life insurance companies in India. This had adversely affected the faith of the general
public in the utility of obtaining life cover.



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-linked savings adequately
attractive.
 Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose
money it holds in trust, without losing sight of the interest of the community as a whole;
the funds to be deployed to the best advantage of the investors as well as the community
as a whole, keeping in view national priorities and obligations of attractive return.
 Conduct business with utmost economy and with the full realization that the moneys belong
to the policyholders.
 Act as trustees of the insured public in their individual and collective capacities.
 Meet the various life insurance needs of the community that would arise in the changing
social and economic environment.
 Involve all people working in the Corporation to the best of their capability in furthering
the interests of the insured public by providing efficient service with courtesy.

Promote amongst all agents and employees of the Corporation a sense of participation, pride and
job satisfaction through discharge of their duties with dedication towards achievement of
Corporate Objective.

39. l OM oAR cP SD | 23 41 2 73 5


39
MISSION/VISION


Mission
"Ensure 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."

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



OPERATIONS





NATIONALISATION IN 1956
In 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by owners of private
insurance agencies. In the ensuing investigations, one of India's wealthiest businessmen,
Ramkrishna Dalmia, owner of the Times of India newspaper, was sent to prison for two years.

The Parliament of India passed the Life Insurance of India Act on 19 June 1956 creating the Life
Insurance Corporation of India, which started operating in September of that year. It consolidated

40. l OM oAR cP SD | 23 41 2 73 5


40
the business of 245 private life insurers and other entities offering life insurance services; this
consisted of 154 life insurance companies, 16 foreign companies and 75 provident companies. The
nationalization of the life insurance business in India was a result of the Industrial Policy
Resolution of 1956, which had created a policy framework for extending state control over at least
17 sectors of the economy, including life insurance.



PRESENT SCENARIO




Life Insurance Industry Today
Currently, 24 life insurance companies and 29
non-life insurance companies in the Indian
market compete with each other on price and
service to attract customers. Out of 24 life
insurance companies, Life Insurance
Corporation of India (LIC) is the sole public
sector company fully owned by Government of
India. All the policies issued by LIC of India enjoys sovereign guarantee of Indian Parliament.
Life insurance industry in the country is expected grow 12-15 per cent annually for the next three
to five years. The country’s insurance market is expected to quadruple in size over the next 10
years from its current size of US Dollar 60 billion. During this period the life insurance market is
slated to cross US Dollar 160 billion.

41. l OM oAR cP SD | 23 41 2 73 5


41
The general insurance business in India is currently at Rs. 78000 crore (US Dollar 11.7 billion)
premiums per annum and is growing at a healthy rate of 17 percent.

India’s insurance market legs behind other economies in the baseline measure of insurance
penetration. At only 3.9 percent, India is well behind the 11.9 percent for Korea, 11.5 percent for
the UK 11.1 percent for Japan, 7.5 percent for the US. Indian insurance industry is expected to
grow to the US$ 280 billion by financial year 2020.

Government has approved the ordinance to increase Foreign Direct Investment (FDI) limit in
Insurance sector from 26 per cent to 49 per cent which would further help attract investments in
the sector. As per Union Budget 2019-20, 100 per cent foreign direct investment (FDI) will be
permitted for insurance intermediaries.

In 2022, insurance sector in India saw 10 merger and acquisition (M&A) deals worth US$ 903
million. Enrolments under the Pradhan Mantri Suraksha Bimas Yojana (PMSBY) reached 130.41
million in 2021-22. National Health Protection Scheme was announced under Budget 2018-19 as
a part of Ayushman Bharat. The scheme will provide insurance cover of up to Rs 500,000 (US$
7,723) to more than 100 million vulnerable families in India. Crop insurance segment contributed
8.6 per cent to gross direct premiums of non-life insurance companies in FY20 (up to June 2019).


Overall insurance penetration in India reached 3.69 percent in 2017 from 2.71 percent in 2001. In
FY19 (up to Jan 2019), gross direct premiums of non-life insurers reached Rs. 1.39 trillion (US$
19.28 billion), showing a year-on-year growth rate of 12.65 percent.


Market Size
Government's policy of insuring the uninsured has gradually pushed insurance penetration in the
country and proliferation of insurance schemes. Gross premiums written in India reached Rs 5.53
trillion (US$ 94.48 billion) in FY18, with Rs 4.58 trillion (US$ 71.1 billion) from life insurance
and Rs 1.51 trillion (US$ 23.38 billion) from non-life insurance. Overall insurance penetration
(premiums as % of GDP) in India reached 3.69 per cent in 2017 from 2.71 per cent in 2001.

In FY19 (up to October 2018), premium from new life insurance business increased 3.66 per cent
year-on-year to Rs 1.09 trillion (US$ 15.46 billion). In FY19 (up to October 2018), gross direct
premiums of non-life insurers reached Rs 962.05 billion (US$ 13.71 billion), showing a year-on-
year growth rate of 12.40 per cent.

42. l OM oAR cP SD | 23 41 2 73 5


42
Investments and Recent developments in the sector:
The last few years have seen a lot of activity in the sector. This is a testament to the vibrancy of
the industry in India. Here are a few examples from different categories of deals/ developments:

 Strategic deals: As of November 2018, HDFC Ergo is in advanced talks to acquire Apollo
Munich Health Insurance at a valuation of around Rs 2,600 crore (US$ 370.05 million).

 Initiatives by non-sector players: In October 2018, Indian e-commerce major Flipkart
entered the insurance space in partnership with Bajaj Allianz to offer mobile insurance.

 Financial investors: In August 2018, a consortium of West Bridge Capital, billionaire
investor Mr. Rakesh Jhunjunwala announced that it would acquire India’s largest health
insurer Star Health and Allied Insurance in a deal estimated at around US$ 1 billion.

 New product offerings: In September 2018 HDFC ERGO launched a new product called
E@Secure: a cyber-insurance policy to protect individuals and families from cyber-attacks.


The following are some of the major investments and developments in the Indian insurance
sector.

 Insurance sector companies in India raised around Rs 434.3 billion (US$ 6.7 billion)
through public issues in 2017.
 In 2017, insurance sector in India saw 10 merger and acquisition (M&A) deals worth US$
903 million.
 India's leading bourse Bombay Stock Exchange (BSE) will set up a joint venture with Ebix
Inc. to build a robust insurance distribution network in the country through a new
distribution exchange platform.



LIC of India Acquires IDBI

LIC of India acquired 51% stake in IDBI Bank by investing Rs. 14500 crores. This deal was the
part of a bailout package for the sinking bank is expected to provide a win-win situation to both
the partners.

43. l OM oAR cP SD | 23 41 2 73 5


43
Government initiatives / policies
The Government of India has taken a number of initiatives to boost the insurance industry. Some
of them are as follows:
1. Foreign Direct Investment (FDI) limit for the insurance sector increased from 26% to 49%.
2. Life insurance companies operational for 10+ years are now allowed to go public by IRDA
3. Government plans to divest a significant stake in PSU general insurance companies in order to
execute the steep disinvestment target
4. Several flagship schemes have been launched by the government to boost the insurance sector.
5. In September 2018, National Health Protection Scheme was launched under Ayushman Bharat
to provide coverage of up to Rs 500,000 (US$ 7,723) to more than 100 million vulnerable families.
The scheme is expected to increase penetration of health insurance in India from 34 per cent to 50
per cent.
6. IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1 (AT1) bonds that are
issued by banks to augment their tier 1 capital, in order to expand the pool of eligible investors for
the banks.
7. The Insurance Regulatory and Development Authority of India (IRDAI) plans to issue
redesigned initial public offering (IPO) guidelines for insurance companies in India, which are to
looking to divest equity through the IPO route.



Flagship schemes:
 Pradhan Mantri Jan Suraksha Bima Yojana: This scheme focuses on providing affordable
insurance to people below the poverty line, in rural areas
 Pradhan Mantri Jeevan Jyoti Bima Yojana: This initiative provides life insurance for
people employed in the unorganized sector
 Atal Pension Yojana: This guarantees pension Coverage to all citizens in the unorganized
sector who join the National Pension System (NPS)
 Ayushman Bharat Yojana: Each beneficiary family will receive medical insurance cover
of INR 5 lakh, which they can use to get treatment at public or private hospitals.

 Over 47.9 million famers were benefitted under Pradhan Mantri Fasal Bima Yojana
(PMFBY) in 2017-18.

44. l OM oAR cP SD | 23 41 2 73 5


44
Road Ahead
The future looks promising for the life insurance industry with several changes in regulatory
framework which will lead to further change in the way the industry conducts its business and
engages with its customers.

The overall insurance industry is expected to reach US$ 280 billion by 2020.


Life insurance industry in the country is expected grow by 12-15 per cent annually for the next
three to five years.

Demographic factors such as growing middle class, young insurable population and growing
awareness of the need for protection and retirement planning will support the growth of Indian life
insurance.

Exchange Rate Used: INR 1 = US$ 0.0159 as on March 31, 2019


References: Media Reports, Press Releases, Press Information Bureau, Union Budget 2017-18,
Insurance Regulatory and Development Authority of India (IRDA), Crisil

Disclaimer: This information has been collected through secondary research and IBEF is not
responsible for any errors in the same

45. l OM oAR cP SD | 23 41 2 73 5


45
PRODUCTS OFFERED BY LIC
LIC's Insurance Plans are policies that talk to you individually and give you the most suitable
options that can fit your requirement.

Endowment Plan
 » LIC's Bima Jyoti
 » LIC's Bima Ratna
 » LIC's Dhan Sanchay
 » LIC's Jeevan Azad
 » LIC's Dhan Vriddhi
 » LIC's New Endowment Plan
 » LIC's New Jeevan Anand
 » LIC's Aadhaar Stambh
 » LIC's Aadhaar Shila
 » LIC's Single Premium Endowment Plan


Whole Life Plans
 » LIC's Jeevan Umang


Money Back Plans
 » LIC's Dhan Rekha 
 » LIC's New Bima Bachat 
 » LIC's NEW MONEY BACK PLAN - 20 YEARS
 » LIC's NEW MONEY BACK PLAN - 25 YEARS
 » LIC's NEW BIMA BACHAT
 » LIC's NEW CHILDREN'S MONEY BACK PLAN
 » LIC's Jeevan Tarun


Term Assurance Plans
 » LIC's New TECH TERM
 » LIC's New Jeevan Amar
 » LIC's Saral Jeevan Bima


RIDER
 » LIC's Linked Accidental Death Benefit Rider 
 » LIC's Accidental Death and Disability Benefit Rider 
 » LIC's Accident Benefit Rider 
 » LIC’s New Critical Illness Benefit Rider
» LIC's NEW TERM ASSURANCE RIDER - (UIN: 512B210V01)

46. l OM oAR cP SD | 23 41 2 73 5


46
LIC v/s Private Life Insurance Companies


In the first five months of the current financial year, first-year premiums of life insurance
companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35
crore in April-August of 2021-22.

Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private
insurance players, shows the data from the Insurance Regulatory and Development Authority of
India (IRDAI). Market participants say that, growth in insurance was largely due to the surge in
group non-single business and individual single premium business in the April-August period.

The data from IRDAI shows that, private players saw first year premiums at Rs 28,480.43 crore
in April-August, 2022 as against Rs 22,886.48 crore in the previous financial year, a growth of
24.44%. First year premiums for LIC stood at Rs 77,220.97 crore in the first five months of current
financial year compared to Rs 52,701.86 crore in the previous financial year, a surge of 46.52%.
Even for the month of August, new business premiums for the life insurance industry grew by
26.37% at Rs 23,554.94 crore compared to Rs 18,639.29 crore seen in August last year.

Tarun Chugh, MD and CEO, Bajaj Allianz Life Insurance said, “Despite the market volatility, we
have had a positive swing in our growth numbers, and this not only reiterates our customers trust
in the brand, but is also reflective of how life insurance is now being viewed by them. “It’s
interesting to see that the industry has been able to make stable growth in these times, yet again
indicating that for long term life goals, life insurance is one of the strongest investments to make,
no matter how the markets are doing.”

First year premiums for Bajaj Allianz for the period of April-August stood at Rs 1,728.41 crore as
against Rs 1,433.23 crore in the previous financial year, indicating a growth of 20.60%. Insurers
like HDFC Life, ICICI Prudential Life Insurance, Kotak Mahindra Life Insurance, Max Life, PNB
Metlife, SBI Life and Tata AIA Life saw growth in their first year premiums.

In terms of segments, group single policies saw new business premiums for April-August period
at Rs 45,007.60 crore as against Rs 43,220.97 crore in the previous financial year, a growth of
4.13%. While group non-single first year premiums stood at Rs 19,370.60 crore as compared to
Rs 432.94 crore in the last fiscal. Individual single premium and individual non-single premium
grew by 71.98% and 12.22% respectively in April-August period.

47. l OM oAR cP SD | 23 41 2 73 5


47

48. l OM oAR cP SD | 23 41 2 73 5


48

49. l OM oAR cP SD | 23 41 2 73 5


49
Indian Life Insurance Industry Analysis – 2021-22


Growth of Life Insurance Industry 2021 V/s 2022
2021 2022 Growth %
Premium (Crores) 214672.86 237584.69 10.67%
Number of Policies 28687812 29182397 1.72%
Sum Assured (Crores) 4333541.41 4836879.88 11.61%

Life Insurance industry in India showed a growth of 10.67% in Total First Year Premium
collection compared to previous year. In the meantime, 1.72% was the growth shown in Number
of Policies (NOP) and 11.61% on Sum Assured underwritten in the corresponding period.
The premium growth percent registered this year was marginally lower compared to the previous
year. Notably, the premium growth was 10.99% in 2021-22 against the current year growth of
10.73%.




Top 20 Life Insurance Companies in India-List & IRDA Ranking 2022




Here I am going to list out top ever life insurance companies in India. It’s very difficult to choose
the top rank company on these life insurance companies because every insurance brand is good
and their policies are beneficial for the policyholder. Here I am just suggesting you top 20 best
lists of Insurance companies. It’s always depending on you to choose the best life insurance
companies after doing proper market research to understand your budget and goal.

50. l OM oAR cP SD | 23 41 2 73 5


50
1. LIC (Life Insurance Corporation of India)


Who doesn’t know LIC? Yes, everyone! This is one of the top class life insurance companies ever
in India. LIC has founded in 1
st
September 1956 with headquarters Mumbai. This is the oldest
insurance company in India. Shri V.K Sharma is the chairman of this firm and this insurance
company deals with several products like Life insurance, Investment management, Mutual fund,
Health Insurance and much more. LIC comes at the top position in terms of highly growing
insurance brand in India and most trusted one too.

Popular Plans
 LIC Jeevan Akshaya
 LIC E-term Plan
 LIC New Children’s plan
 LIC Jeevan Saral


2. ICICI Prudential Life Insurance






ICICI Prudential Life Insurance Company is one of the most preferred life insurance companies
in India. This company was founded on 12
th
December 2000 with headquarters in Mumbai. This
is a public type insurance company which offers amazing insurance plans. MR N.S Kannan is the
Chief executive officer and Managing Direct of this company. If you need a good life insurance
plan then you can definitely go with this company’s policy.

51. l OM oAR cP SD | 23 41 2 73 5


51
ICICI Prudential life Insurance Official website link


Popular Plans
 ICICI Pru Heart Cancer Protect
 ICICI Prudential Smart Health Cover
 ICICI Pru iProtect Smart
 ICICI Pru Life Raksha



3. Kotak Life Insurance




One of the life insurance firms in India with the quickest growth is Kotak Mahindra Life
Insurance Company Limited. They provide several different life insurance plans and policies,
such as term insurance, ULIPs, savings, investment, and pension programs.

Kotak life insurance official website


Popular Plans
 Kotak Platinum plan
 Kotak Assured Income Plan
 Kotak Single Invest Advantage
 Kotak Endowment Plan
 Kotak Ace Investment Plan

52. l OM oAR cP SD | 23 41 2 73 5


52
4. Bajaj Allianz Life Insurance


Bajaj Allianz Life Insurance is one of the renowned life insurance companies in India which deals
with several classy insurance and investment products. This company was founded in the year
2001 with headquarter Pune. Tarun Chugh is the current MD and CEO of this insurance company.
This is a joint venture between Allianz SE and Bajaj Finserv Limited. Now this company has
almost 759 branches all over India. You can get several beneficial products from this insurance
firm.

Bajaj Allianz Life Insurance official website


Popular Plans
 Young Assure Plan
 Save Assure Plan
 Life Long ASSURE Plan
 iSecure Loan plan
 Retire Rich



5. Birla Sun Life Insurance


Birla Sun Life Insurance is another popular and trusted life insurance company where you can
purchase your life insurance. This is a joint venture of Aditya Birla group and popular Sun Life

53. l OM oAR cP SD | 23 41 2 73 5


53
Financial INC. This is an insurance brand which has a high aim of providing world class financial
security to its customers and that’s the reason people love this insurance company. Nowadays this
company is dealing with several beneficial products like Group plans, rural plans, Child plans,
saving plans, protection plans and much more.



Birla Sun Life insurance official website


Popular Plans
 BSLI Protector plus plan
 BSLI Protector Ease
 BSLI Secure Plus Plan
 BSLI Vision Endowment Plan



6. SBI Life Insurance


SBI Life Insurance is a popular and trustworthy brand for people in India. This is a joint venture
of BNP Paribas and State bank of India. SBI holds almost 70.1% ownership and rest is in the name
of BNP Paribas which is a French multinational bank. This insurance company was started in 2001
and at the initial stage this company was dealing from banc assurance but now it has its own agency
and it deals with several life insurance products.

SBI life insurance Official website


Popular Plans
 SBI LIFE-eShield
 SBI LIFE-smart money planner
 SBI LIFE-Smart Humsafar
 SBI LIFE-CSC Saral Sanchay

54. l OM oAR cP SD | 23 41 2 73 5


54
7. Max Life Insurance


Max Life Insurance which formerly known as Max New York Life Insurance Company Limited
is a reputed insurance company in India. In the year 2000, this company was entered into the
insurance business and started service in 2001. Analjit Singh is the chairman of Max Life insurance
who is also the founder of Max Health. This is a joint venture of Max Finance service and Mitsui
Sumitomo Insurance Company. Till now Max Life has more than 3000 life insurance customer in
India and it also provides several plans like child plans, Strategy plans, Growth plans, Term Plans
and much more.

Max life insurance official site


Popular Plans
 Max Life Online Term plan
 Max Life Premium Return Protection plan
 Max Life Super Term Plan
 Guaranteed Lifetime income plan
 Shiksha Plus Super



8. HDFC Standard Life Insurance


HDFC Standard Life Insurance is a highly reputed long-term life insurance provider of India.
Mumbai is the head quarter of this life insurance company. This is a life insurance firm with the

55. l OM oAR cP SD | 23 41 2 73 5


55
joint venture between HDFC and Standard life Aberdeen PLC. HDFC insurance company deals
with several products in which you will get Pension plans, protection, health plans, investment
plans, and savings plan.

HDFC standard life insurance official website


Popular Plans
 HDFC Standard Life Insurance Term Plan
 HDFC Endowment Plan
 HDFC Retirement Plan
 HDFC Life child Plan



9. Tata AIA Life Insurance


Tata AIA life insurance is a joint venture of AIA group and Tata son’s ltd. According to a recent
record, this insurance company has almost INR 1397 crore premium business collections for the
year 2017-2018. The settlement ratio of this company is quite high than its competitor which is
almost 98%. This company always aims to provide hassle-free and smooth insurance solutions
with a better plan.

Tata AIA life insurance official website


Popular Plans
 Tata AIA Life Insurance iRaksha Supreme
 Tata AIA Life Insurance Maha Raksha Supreme
 Tata AIA Life Insurance iRaksha TROP

56. l OM oAR cP SD | 23 41 2 73 5


56
10. ING Vysya Life Insurance (Renamed “Exide Life Insurance”)




Exide Life Insurance Company which formerly known as ING Vysya Life Insurance Company is
an Indian owned company. Exide Industries is the owner of this insurance company. It deals its
product via several channels like corporate agency, Bancassurance and direct channels. Till the
date, this insurance company has more than 15 lakh customers and almost INR 11,015 crores
assets.

Exide life insurance company official website


Popular Plans
 Exide Life term insurance plan
 Exide life term smart term plan
 Exide life term rider
 Exide life secured income insurance regular pay


11. PNB Metlife India Insurance Company


If you are looking for a leading life insurance company then you can go with PNB Metlife. This is
a life insurance company which was started its service since 2001. This insurance company has
three shareholders like Metlife international Holdings LLC, Punjab National Bank and Jammu &
Kashmir Bank limited. Ashish Kumar Srivastava is the CEO and Principal Officer of PNB Met
life India Insurance Company.

57. l OM oAR cP SD | 23 41 2 73 5


57
PNB met life insurance official website


Popular Plans
 PNB MetLife Mera heart and cancer care
 PNB Metlife Serious Illness rider
 PNB Metlife Mera Term Plan
 PNB Metlife Accidental Death benefit rider plus



12. Aviva India Life Insurance


Aviva India Life Insurance was started in the year 2002 July as a joint venture of two famous
groups one is Dabber and Aviva Plc. As per the record, Aviva India life insurance Company consist
of Dabur group has 51% of the stake and Aviva plc has 49% of stack partnership. This is the first
Insurance Company which introduced modern unitized with profit policies and Unit-linked
policies. It offers several attractive insurance plans to its customers and some of these are given
below.

Aviva India life insurance official website


Popular Plans
 Aviva i-term smart
 Aviva i-life Total
 Aviva Heart Care
 Aviva Extra Cover
 Aviva Health Secure
 Aviva i-shield

58. l OM oAR cP SD | 23 41 2 73 5


58
13. Bharti Axa Life Insurance Company Limited


Bharti Axa life Insurance company limited is a joint venture between two popular brands like
Bharati Enterprises and AXA group. These both groups are listed on top business groups in India.
This Insurance Company started its service in 2006 with its headquarter in Mumbai. Mr. Sandeep
Ghosh is the chief executive officer of Bharti AXA life insurance. You can get several amazing
and lucrative insurance offers from this company. Let’s know some of the best plans for this
insurance group.

Bharati AXA life insurance official website


Popular Plans
 Bharati AXA Samriddhi Plan
 Bharati AXA Life Elite Advantages Plan
 Bharati AXA Life Aajeevan Sampatti+Plan
 Bharati AXA Life secure Income plan



14. IDBI Federal Life Insurance


IDBI Federal life insurance was started in the year on 2006 and now it’s offering several amazing
insurance plans for its customers. This is an insurance company with the three-way joint venture
banks like IDBI Bank, Federal Bank, and Ageas. In December 2007, this insurance company
received the license from IRDAI and started its insurance service officially. The head quarter of

59. l OM oAR cP SD | 23 41 2 73 5


59
this insurance company is in Mumbai. Vighnesh Shahane is the all-time director and CEO of this
life insurance company.

IDBI federal life insurance official website
Popular Plans
 IDBI Federal Wealthsurance Growth Insurance Plan
 IDBI Federal Wealthsurance Growth Insurance Plan Single Premium
 IDBI Federal Life Insurance Wealth Gain Plan
 IDBI Federal Group Microsurance Plan
 IDBI Lifesurance Savings Plan



15. Canara HSBC OBC


Canara HSBC OBC is one of the reliable and famous life insurance companies ever. It was
launched in June 2008. This is an insurance company which is a joint venture of some reputed and
leading public sector banks like Oriental bank of commerce (23%), Canara Bank (51%) and HSBC
insurance holdings limited (26%). This insurance firm always focuses on fulfilling the customers
need and provides plans accordingly.

Canara HSBC OBC life insurance official website


Popular Plans
 iSelect Term Plan
 iInvestshied Plan
 Smart Junior Plan
 Smart Suraksha Plan
 Jeevan Nivesh Plan
 Samridh Bhavishya

60. l OM oAR cP SD | 23 41 2 73 5


60
16. DHLF Pramerica


When it comes to top 20 life insurance companies in India you can’t neglect DHLF Pramerica.
This is one of the fastest growing life insurance companies in India and it’s headquarter is in
Gurgaon. This company was founded in 1984 by Shri Rajesh Kumar Wadhawan. DHLF is a joint
venture of Dewan Housing Finance Corporation Ltd and Prudential International Insurance
Holdings, Ltd.

DHLF Pramerica life insurance official website


Popular Plans
 DHFL Pramerica family fast
 DHFL Pramerica family income
 DHFL Pramerica True Shield
 DHFL Pramerica U Protect
 DHFL Pramerica life cancer + heart shield



17. AEGON Life


If you need the best insurance plan for you then AEGON Life Insurance Company is always a
better option for you. In 2008, AEGON Life has founded with headquarters in busy city Mumbai.
AEGON Life insurance company was known as AEGON Religare Life Insurance

61. l OM oAR cP SD | 23 41 2 73 5


61
Company. This insurance company is a joint venture of The Times Group and Dutch AEGON N.V
firm. It offers Term life insurance, health insurance, savings, and other investment plans.

AEGON Life insurance official website


Popular Plans
 iTerm insurances Plans
 iReturn Insurance Plan
 Future Protection Insurance Plan
 Rising Star Insurance Plan
 Jeevan Shanti Insurance Plan



18. India First


“India First” is a popular joint venture life insurance company in India. This is a joint venture
between two Indian public sector banks like Andhra Bank, Bank of Baroda and one UK’S firm
which is legal & general. The share percentages between these three are like 30%, 44%, and 26%
respectively. In November 2009, India First bank was incorporated and Mumbai headquarters of
this life insurance company. Ms. R.M, Vishakha is the MD& CEO of this famous insurance brand.
India first Life Insurance sells various products like insurance plans, life insurance, group policies,
and investment funds.

India First life insurance official website


Popular plans
 Insurance Khata
 India first guaranteed retirement plan
 Indian First Any time plan
 India First Happy India Plan
 India First Life Little Champ

62. l OM oAR cP SD | 23 41 2 73 5


62
19. Future Generali India Life Insurance


Future Generali India Life Insurance Company Limited offers a variety of simple-to-understand life
insurance plans that cater to various life needs such as protection, savings, investments, child’s education,
and health

Future Generali India Life Insurance official website


Popular plans
 Future Generali Long Term Income Plan
 Future Generali Money Back Super Plan
 Future Generali Lifetime Partner Plan
 Future Generali New Assured Wealth Plan
 Future Generali Assured Money Back Plan



20. Star Union Dai-ichi Life Insurance


A wide range of insurance products are provided by Star Union Dai-ichi Life Insurance
Company Limited to meet the needs of a sizable clientele dispersed throughout the nation.
Depending on their demands, customers can choose the program they want.

Star Dai-ichi life insurance official website

63. l OM oAR cP SD | 23 41 2 73 5


63
Popular Plans
 Star Union Dai-ichi Abhay Term Insurance Plan
 Star Union Dai-ichi Saral Jeevan Bima Plan
 Star Union Dai-ichi Guaranteed Money Back Plan
 Star Union Dai-ichi Guaranteed Money Back Plan





IRDA ranking of Insurance companies in India
Many people have the wrong conception that IRDA (Insurance Regulatory and Development
Authority of India) provides Rank to the insurance companies but the reality is, IRDA never ranks
any insurance companies in India. It always gives equal value to every insurance company.



Final words
Above given 20 best insurance companies in India lists are the best if you are looking for the
best life insurance plan for your better future. If you are going to choose the right policy, you need
to understand your aim and budget. Study all the policies of different firms and go for the best
according to your judgment. Hope you guys get good knowledge on top 20 life insurance
companies in India.

64. l OM oAR cP SD | 23 41 2 73 5


64
SWOT ANALYSIS OF LIC OF INDIA

The government owns the insurance and investment company known as Life Insurance
Corporation of India, or LIC as it is more often known. With its headquarters in Mumbai and an
estimated asset value of 240 billion USD, LIC is recognized as the largest insurance company in
India. The LIC's total life fund is thought to be around 143 billion USD, but the corporation still
sells insurance every year for millions of dollars.

The Indian government chose to launch its own life insurance business after the Life Insurance of
India Act was approved in 1965, which led to the creation of LIC of India. This action also led to
the nationalization of India's insurance industry, which was formerly made up of a number of
private businesses. The Life Insurance Corporation was created by the merger of more than 240
private insurance companies and provident organizations.

Strength:
Strengths are defined as what each business does best in its gamut of operations which can give it
an upper hand over its competitors. The following are the strengths of LIC are:

 India’s largest Insurance service provider: With 2,048 branches, 1381 satellite offices, 8
zonal offices, about 113 divisional offices, and 2048 fully computerized branch offices, LIC
today operates throughout all of India. The entire nation is divided into 54 customer zones
and 25 metro-area service hubs, which are spread throughout different Indian cities and
villages. LIC currently sells life insurance to the general public through 1,337,064 individual
agents, 242 corporate agents, 89 referral agents, 98 brokers, and 42 banks.
 Brand Image: In India, LIC has a well-established brand. It is well known for its slogan,
"Yogakshemam Mahamyaham," which means "welfare for all." The most dependable insurer in
India, according to the Economic Time Brand Equity Survey of 2015, is LIC.
 Fund Base: LIC has a huge found base of around 150 billion USD and is also India’s biggest
investor making it immensely powerful in the domain of finance in India.

65. l OM oAR cP SD | 23 41 2 73 5


65
 A network of Agents: LIC has around 1,337,064 individual agents, 242 Corporate Agents,
89 Referral Agents, 98 Brokers and 42 Banks across India who cover each nook and corner
of the country.

Weakness

Weaknesses are used to refer to areas where the business or the brand needs improvement. Some
of the key weaknesses of LIC are:

 Culture: LIC has been strongly associated with the government and thus follows a very
slack and slow paced work culture. This works as a weakness when compared to modern-
day private insurance players who are adept at strategy.
 Poor advertisement strategy: In comparison to its private counterparts LIC does not spend
too much on advertisement and this shows in the quality of ads that they release.
 Too many restrictions: The Company has a lot of restriction imposed on it being a
government entity and there are always red tape challenges. This makes decision making
slow at LIC.
 Labour overheads: LIC has a huge employee’s strength and most of them work from their
own setups. Paying their salaries and managing theme is often a huge challenge for the
company.



Opportunities

Opportunities refer to those avenues in the environment that surrounds the business on which it
can capitalize to increase its returns. Some of the opportunities include:

 Cyber security: There are many cases of information threats and breaches in security
systems. Thus at an age where cyber security is a threat Insurance policies against this can
prove to be a huge opportunity.
 Online Services: As online services grown people have started looking more into options
like insurance and the awareness levels are also higher than the earlier days. This presents
an opportunity for providers like LIC which are labor intensive to cut down costs by
replacing people with technology.
 Shift from protection to prevention: There is a general shift of trend from protection to
prevention which is a pointer for insurance companies who should now be focusing on risk
prevention than risk mitigation policies.
 More disposable income: Insurance today is seen not as a protection but also as a form of
investment. By capitalizing on this new approach insurance companies can design new
products.

66. l OM oAR cP SD | 23 41 2 73 5


66






Threats

Threats are those factors in the environment which can be detrimental to the growth of the business.
Some of the threats include:

 Competition: With privatization of insurance LIC has lost its older glory and today faces
stiff competition from private insurance players who have brought in more glamour into the
industry.
 Change of governments: With every new government the fiscal and monetary policies
change with the result that policies need to be reworked accordingly. This creates a lot of
hassles.
 Technology: Today most financial services make technology an integral; part of their
business through online banking and financial broking services online. However, LIC still
has a lot to achieve in terms of staying abreast with technology.

67. l OM oAR cP SD | 23 41 2 73 5


67
HYPOTHESIS

 NULL HYPOTHESIS
Customers of LIC of India of Mumbai district have negative perception towards the products
offered by the L.I.C.

 ALTERNATE HYPOTHESIS
Customers of LIC of India of Mumbai district have positive perception towards the products
offered by the L.I.C.



OBJECTIVES OF THE STUDIES
 To study the perception of customer towards products offered by LIC of India.
 To find out the important criteria that people think about before investing in a life insurance
policy.
 To find out whether gender bias involved in investing life insurance or not.
 To find out the awareness of Life insurance Corporation among the people



SCOPE OF THE STUDY
 The result of this research would help the company to have a better understanding about
the consumer’s perception towards life insurance products offered by LIC of India.
 The study helps the LIC of India to focus the consumer’s preferences and expectations on
the product which they offer.

68. l OM oAR cP SD | 23 41 2 73 5


68


LIMITATIONS OF THE STUDY

The following limitations can be pointed out from the research
 The sample size chosen for the questionnaire was only 200 and that may not represent the
true picture of the consumer perception about the Life Insurance sector.
 The research got confined to the city of Mumbai district only. The respondent belonged
only to Mumbai city and not others who were out of Mumbai city.
 The selection of people for the questionnaire will be done on the basis of convenient
random sampling, so, there were certain cases in which the people selected did not have
any life insurance policy, so they could not give any positive feedback regarding the
important criteria to be considered before taking a life insurance policy.
 The product offered by different companies had different options and names in them, so at
the time of comparison it will become very difficult. The parameters for comparison will
also different in the selected companies.
 Resource Constraint
 Time Constraint

69. l OM oAR cP SD | 23 41 2 73 5


69
CHAPTER - 3
COMPANY OVERVIEW


AIM India stands for Accrual Intelligence Manuals Group. AIM is India headquartered and experts in
Wealth Advisory and Internships. It is also a corporate service provider. AIM India believes in dynamic
culture and it is their goal to help the individual in dealing with the dynamism of environment whether it
is related to the wealth or expansion of business.
1,500 Clients As the leading one stop solution provider for all the financial and investment services, we
serve over 1,500 clients all over the world.
1,350 Interns Being the only Company of its own kind, we have provided training to more than 1,350
interns who got International Exposure as well.
100% Compliance We handle almost 7,000 compliance issues per annum, needless to say, we stay updated.
PAN India Associates Having more than 50 associates all over India, we provide quality in all the services
Recruitment Perfect matchmaker for talent and job roles. Also, providing job opportunities in abroad.

COMPANY MISSION:

To become an organization that is knowledge centric and offers expert advice to our clients.

COMPANY VISION

Our vision is to deliver high rate of returns to our clients and to move towards financial independence.

70. l OM oAR cP SD | 23 41 2 73 5


70
COMPANY SERVICE
1) Internship Services:


We provide Internship at the nation and international levels. To ensure that RPAS activities are successfully
and smoothly incorporated into their current business systems, clients of AIM India can take advantage of the
company's team of skilled educational and training professionals. Technical trainers, high school teachers,
university lecturers, and regulatory trainers are some of our training specialists. We have created online and
e-training materials, done training needs analyses, delivered in-house training, and developed training
manuals.

2) Compliance Services:


Our compliance specialists are fully aware of the company compliancen requirements across all territorial
jurisdictions. If one is unaware of essential updates, non-compliance might lead to fines and jail. As the majority of
economies in Asia are close to change, the compliance horizon is quite dynamic. Companies with intra-regional
activities will find AIM India to be a valued partner, providing compliance services and solutions for all of their
regional subsidiaries. We will be providing you with the following services, so you can focus on your primary tasks
Company Constitution
Meetings & Company Officers
Maintaining Statutory Books & Registers
Annual Filings with The Company Registrar
Statutory Reporting.

71. l OM oAR cP SD | 23 41 2 73 5


71
3) Accounting Services:


Accounting transactions get more bulky and complicated as businesses grow, and from being a main
function, accounting becomes a strategic function. Our accounting specialists at AIM India will give you
specialized accounting solutions because they have experience in multiple regions and have a wealth of
specialized accounting solutions because they have experience in multiple regions and have a wealth of
technical knowledge In order to attain control and transparency in accounting through standardization
of agenda, it is fundamental to trust a regional accounting specialist. We have a competitive advantage of
seasoned people and IT System to provide regionally seamless, connected, and all-inclusive
reinforcement. To remain relevant to the changes in the region, we have a flexible approach to systems
and solutions. Our expertise will enable businesses to grow by observing prudent choices. These are the
service :
Accounting and Bookkeeping
Statutory Reporting
Payroll and Expense Claim Management Services
Bank Account Reconciliation
Corporate Tax Compliance

4) Training & Development Services:


The overall strategy and goals of the small business are the foundation for effective training and
development Planning out the entire training process with specific business objectives in mind is a good
idea. AIM India provides assistance in creating a training strategy that will be useful in analyzing the
company's clients and rivals, strengths and weaknesses, and any pertinent market or societal trends.
The next stage is to use this data to determine which areas require training for both the organization as a
as a whole and for specific individuals. It will be useful when doing an internal audit to identify general
areas that could use training or when conducting a skills inventory to identifythe talents that employees
now have and those that they could need in the future.

72. l OM oAR cP SD | 23 41 2 73 5


72
5) Recruitment Services:


Customized strategies are developed from a deep understanding and observation of organization'
culture and its business objectives. Expansion in new markets or recruitment for that market can only
be done after having the full-fledged knowledge of recruitment, remuneration and retention strategies
besides the understanding of regional work culture. At AIM India, you will find a network of efficient
regional consultants who will provide you the pathway towards seamless
recruitment services starting from identifying your potential clients to handling the immigration
process, if required. Our experts have the complete knowledge to provide valuable advisory in the
following matters:
Candidate Search
Profiling
Interview Coordination
Employment Contract
Immigration
Advisory Service


6) Insurance Services:


Different types of business have different types of risks. For adequate coverage, regionally settled
businesses need a thorough understanding of their market so that they can identify the potential risk
involved. Natural disasters, political uncertainties, epidemics, terror threats, technological threats are
adding to the risks posed by economic instability and competition. AIM India have the group of insurers
who provide the comprehensive coverage and detailed risk assessment to identify the gap. Our insurers
will also advise you about the minimization of expenses on risk premium by providing the services to
reduce claims and they will help you in gaining the understanding of uninsured risks so that you can avoid
them. Our main services in this sector are: Risk Assessment, Coverage, Political Risk
Professional Insurance,

73. l OM oAR cP SD | 23 41 2 73 5


73
7)Wealth Advisory Services:


Financial planning, investment portfolio management, and a number of consolidated financial services are
all part of the investment advising discipline known as wealth management. Wealth
managers connect retail banking, estate planning, legal resources, tax professionals, and investment
management for high-net-worth individuals (HNWIs), small-business owners, and families that want
the help of a qualified financial counseling specialist. We have wealth managers at AIM India Group with
backgrounds as independent Chartered Financial Consultants, Certified Financial Planners, Chartered
Strategic Wealth Professionals, Chartered Financial Planners, or any credentialed (such as MBA)
professional money managers who can assist you in enhancing your income, growth, and tax-favorable
treatment over the long term High-net-worth investors receive private money management. We will also
advise you on how to use different estate planning tools, arrange for the sale of your business or the
exercise of stock options, and occasionally use hedging derivatives for large stock blocks.

74. l OM oAR cP SD | 23 41 2 73 5


74
CHAPTER - 3
REVIEW OF LITERATURE


Before 2000, the only player in the Indian life insurance market was the government-sponsored
Life Insurance Corporation of India (hence referred to as LIC). Despite the fact that both market
size and insurance premia are growing, LIC has lost a significant amount of market share to private
competitors since they entered the market. Life insurance products were/are more frequently
purchased in India as investments to reduce taxes than to mitigate risk. In this area, brand
preference has never been thoroughly investigated. Most people believe that life insurance is an
unwelcome commodity and that customer happiness is a "paradox." The hypothesis that has been
looked at is that in an underdeveloped market, customer happiness can lead to business prospects.
It can be a tool for finding fresh opportunities for upselling, cross-selling, and referrals.
Additionally, it makes an effort to pinpoint the aspects of service quality that matter to customers.
The SERVQUAL scale was utilized to identify the various service quality aspects and mean To
determine whether there is a discrepancy between client expectations and perceptions, scores were
used.

It costs four times less to keep an existing customer than to find a new one. In particular, the
insurance business places a high priority on customer retention. Building relationships is a key
step in the insurance business. Whereas one customer inspires the construction of another. A happy
consumer is similar to word-of-mouth marketing for the business. Instead of merely focusing on
the new accounts, it's important to identify and meet the wants of the current consumers. Since
keeping clients costs less money and gives the company stability, every effort should be made to
do so. Not that long ago, the good old endowment plan was the recommended method for
protecting oneself from the unexpected and for setting money aside to accomplish one's financial
goals. In accordance with traditional endowment principles, assets were mostly invested in fixed
interest.

To guarantee the safety of capital, use government securities and other secure assets. As a result,
dividend was never as important as capital security in old thinking. However, it was noted that
savings through life insurance were losing their appeal and failing to achieve the ambitions of the
policyholders as a result of the global inflationary trend. The policyholder discovered that because
to the decline in the value of money, the sum insured that was promised to be paid out at maturity
had actually lost value. The investor started to express a preference for a better rate of return on
his assets as well as for capital appreciation after becoming dissatisfied with the so-called security
of capital given under a life insurance policy. Therefore, it was determined that the insurance firms
needed to come up with a strategy for meeting the policyholders' expectations. The goal was to
use an insurance policy as a hedge against inflation. The emergence of ULIPs on the domestic
insurance horizon was a result of the decline of assured return endowment plans and the openness
of the insurance sector. The unit linked insurance policies are now driving the Indian life insurance
industry.

75. l OM oAR cP SD | 23 41 2 73 5


75
The surplus of income after consumption, both at the national and personal levels, is saved as
capital for investments. Money that is extra can be used to buy financial or real assets. The two
main goals of investing are to obtain risk-adjusted return and to safeguard one's capital against
inflation-related value degradation. In India, there are three factors that influence people's
decisions to buy insurance. _ A desire to reduce risk _ A tax benefit _ A desire to save In this
essay, it is suggested that there will be excellent prospects for the insurance industry to increase
the size of its clientele base as a result of the shifting business environment. To achieve this,
insurance products' features must be enhanced to make them more liquid, or the number of short-
term plans may be raised. It is demonstrated that while though the benefits implied by insurance
products, in particular the tax advantages, are comparable to those found in banks and small
government savings programs, they are not quite the same. Mutual funds, which exist in a wide
variety of kinds, are proven to perform reasonably when compared to the risk present. According
to the poll, if effective marketing strategies are used to inform the targeted population about the
uses of insurance policies from an investing point of view, it may not be very difficult to win over
the confidence of small investors toward insurance policies.

One commodity that consumers do not seek but are instead provided via extensive marketing and
education is insurance. Insurance should be purchased, not sold. The modern definition of demand-
side innovation places more emphasis on the social and economic circumstances of the client, with
the goal of providing the greatest possible value at a reasonable cost. Therefore, it becomes
imperative to involve the consumer in the creative process once he or she becomes the main
emphasis. However, there are some insurance innovation sectors in which clients are not permitted
to participate. The recently developed Telemetric Auto Insurance insurance product is a good
example. It is a device made by Progressive Auto Insurance, which keeps track of the
policyholder's driving habits. The new device automatically delivers information to the insurer
after grabbing it. This data is frequently reviewed to reach judicial conclusions regarding the
degree of risk to which the individual is exposed and the associated premium that he is qualified
to pay. In a supply-side innovation scenario like this, it is strictly prohibited from including the
client in the innovation process. Even though there are cases where the consumer participates in
the testing phase, having him participate in the innovation's conceptualization phase makes it
demand-driven.



REVIEW OF LITERATURE:
This chapter includes a study of the literature to pinpoint and comprehend the significance of
various problems with customer satisfaction and perception of public and private life insurance
providers in India. Books, compendia, theses, dissertations, study reports, and articles written by
academics and researchers and published in a variety of magazines make up the literature on the
life insurance market in India. The evaluation of the literature suggests focusing on the uncharted
territory and differentiating the current study from prior investigations. The accessible literature is
listed below:

76. l OM oAR cP SD | 23 41 2 73 5


76
1. Baal N. and Sandhog H. S. (August 2011), A study of Life Insurance Corporation of India
(LIC), a capital-intensive company that offers its clients the most crucial financial tools for long-
term planning and protection. The current study looks at the factors influencing an agent's opinion
of the Life Insurance Corporation of India. Additionally, analysis of a one-way arrangement has
been carried out to test the key findings and demonstrate that there are no significant disparities
among the different categories of respondents in terms of their mistrust of the Life Insurance
Corporation of India.

2. Baal N. and Sandhog H. S. et al (August 2011), The choice area of the service sector is observing
a multi-dimensional, intentional, consumer-friendly approach, shedding off the apathy that had become
associated with the sector. This is due to the access to so many players in the field and the ongoing
competitive activism. According to the study's findings, the perception ratings and gap scores combine to
form three dimensions of service quality rather than five.

3. Meera C. and Eswari M. (November 2011), In today's hostile atmosphere, services are
improving and gaining more significance. In order to improve the mutual and user-friendly
services, more attention is now given to all bank customer touch points. The study's objective is to
erode client satisfaction with regard to cross-selling insurance products and other services provided
by private sector banks.

4. Singh H. and Loll M (December 2011), claims that one of India's most rapidly expanding and
developing markets is life insurance. Insurance business acceptance as a grant in socioeconomic
development is seen in rural areas. The goal of the current study is to evaluate the potential for
insurers in the rural market and establish innovative strategies to reach the rural areas that are
severely underinsured.

5. Friar F. and Khanbashi M. et al (December 2011), Chattering a charismatic information
channel and feedback loop between a business and customers is one of the most deliberate
activities done in enticing and satisfying the requirements of customers, according to this study.
The purpose of this study is to determine how differently staff and consumers in Iran's insurance
business anticipate service quality. The study found that while both groups' expectations for the
other dimensions were similar, there was a clear difference in how employees and customers
anticipated the tangibles factor.

6. Sharma M. and Vijay T. S. et al (January 2012), The goal of this study is to evaluate how
demographic factors affect how satisfied investors are with their opposition to insurance products. The
study examines how demographic characteristics affect investors' satisfaction with insurance coverage.
This study assesses the relationship between demographic variables and overall customer satisfaction with
insurance coverage.

77. l OM oAR cP SD | 23 41 2 73 5


77
7. Gautam V and Kumar M (March 2012), the present research is an effort, to allegorize the
attitudes of Indian consumers towards the insurance services. The study has been made by
accumulating the antiphon of consumers through structured questionnaire on five point Liker scale.
The decree of the present study may act as an important aspect for the insurance companies in
Indian market to flounce marketing strategies established on socio demographic and economic
factors.

8. Ansari Z. A. (March 2012) in the present study examines the attitude of individuals towards
different kinds of risks and scope they prefer in Saudi Arabia. The study by further examine how
the use of insurance particularly the binding insurance has altered the perception towards risks and
their future behavior towards buying other insurance policies and also what features the users of
insurance suggest in their insurance policy contract. The study is based on primary data collected
aimlessly from current users of binding insurance policies that is motor insurance and health
insurance and life insurance.

9. Srivastava A. and Tripathi S. et al (April 2012) is a study on insurance industry bequeaths to
the financial sector of an economy and also renders the paramount social covenant in developing
countries. Hence, the study on Indian life insurance industry and their changing trends concluded
that though the sector is rapidly growing, the industry has not yet insured even 50% of insurable
population of India. To achieve this objective, this sector requires more improvement in the
insurance density and insurance penetration.

10. Bodla B. S. and Chaudhary K. (May 2012), present study by, looks for to determine the
expected and anticipated service quality level along with gaps on the origin of service quality
model by Suresh Chandar et al (2001) in one of the superior private sector company, ICICIPLI –
ICICI Prudential Life Insurance Company. Though altogether private sector has importantly
apprehended the market share at first but now days and most of the private sector companies are
assaying for customary expansion in business and market share and the picked company is one of
them.

11. Das S. K. (June 2012), a study on insurance has been as essential part of financial services
system and acknowledged as a vital element of a country’s financial health and mark of progress.
Insurance suppliers for the financial security of citizens and proposes valuable investment advices
and serves as a persuasive step towards both individual and national financial stability. It is found
that high operating cost, exertion break even, confluence of accounting standard etc. are the main
issues of life insurance companies in India.

12. Borah S. (November 2012), the study done by was in Jorhat branch on the concomitant notion
of marketing accentuates on the gratification of customers. Marketing actualize and end with the
customers. The study on customer satisfaction on products of private sector insurance company
with reference to Kotak Mahindra life insurance company ltd revealed that most of the customers
are gratified and are satisfied with the same.

78. l OM oAR cP SD | 23 41 2 73 5


78
13. L Sreenivas. D. and B Anand M. (December 2012), in the Indian Lexicon, the insurance
convention among the general public during the independence decade was infrequent but yet was
an extraordinary furtherance in the Indian insurance industry soon after the economic reforms a
con due to healthy race from many national as well as international private insurance players. The
study entrap by, was a way to try to determine the investors understanding towards public and
private life insurance companies in India with special regards to Karnataka.

14. V Ravi and Gulati K et al (2012), the financial ameliorate posture a lot of confrontation before
the Indian insurance sector, one of the considerable demos faced by insurance companies’ accord
with the customer complacency and adherence. The study revealed the considerable observations
in customers’ expectations and perceptions from insurance services thus knowing dissatisfaction
among insurance company customers.

15. Babu P. R. (February 2013) in his study by, on the private sector life insurance companies
have been making briskly clump in terms of increasing their augmentation and market share since
year 2000. The Indian life insurance system is having cogent base on mixed economic system
where in the public sector engaged a monopolistic position in life insurance business. Private
players play an extensive aspect in life insurance business more energetic and customer friendly.

16. Bihani P. and Bhowal A. (April 2013), has said that life insurance industry is in an
augmentation aspect and cyclic advancements are going on with respect to products and services.
The most alluring finding of the study was the severity of customer solution experienced is more
that degree of customer solution expected.

17. Purusothaman U. R. (July 2013) has said that India has extensively been known for the
divergence of its culture, for the amplitude of its people and for the accessibility of geography. Its
basin of technical skills, its base of an English speaking populace with an increasing disposable
income and its blooming market have all co adjure and accredit India engrosses as an operable
partner to global industry. Hence, the study revealed that India ranks fifth on the overall index, as
the number of points is more desirable on the country economy development index and the real
estate market index, but fairly low on the regulatory index.

18. Padhi B. (August 2013), a study on Indian insurance market was nationalized in 1956 and
LIC of India was setup. LIC of India adored monopoly on Indian Insurance market for more than
4 decades. The study by will reveal the performance of particular private insurance companies in
the segments like number of policies floated number of money collected through premium and the
annual expansion in the specific areas from 2001 to 2012.

19. Rajan J. and Gomatheeswaran M. (August 2013), a study by this scholar states that
complete and persuasive banking system is required for a healthy economy. In the recent years
new trends have raised in the banking sector. The correlative study conducted by on public and
private sector banks limelight on the level of customer satisfaction on bancassurance services.

79. l OM oAR cP SD | 23 41 2 73 5


79
CHAPTER - 4
RESEARCH DESIGN AND METHODOLOGY


Methodology is a systematic way of solving a problem. It includes the research methods for solving
the problem.



Type of research
Descriptive cum Exploratory research



Data source
Primary and Secondary data



Data collection tools
Questionnaires



Sampling universe
Mumbai City



Sample size
200



SAMPLE DESIGN
The target population of the study consists of various respondents of Mumbai city. This
survey will be done by collecting the data from the respondents.



SAMPLE SIZE
After due consultation with the company supervisor as well as with the college guide, also
keeping in mind the requirements of the company for the research, the sample size that was found
to be appropriate for the study will be 200.

80. l OM oAR cP SD | 23 41 2 73 5


80
SAMPLING TECHNIQUE
The sampling technique that adapted to conduct the survey was ‘Convenience Sampling’
and the area of the research was concentrated in the city of Mumbai. The survey was conducted
by visiting different places like colleges, corporate offices, respondent’s home etc.



DATA SOURCE
The task of data collection begins after a research problem has been defined. In this study data
will be collected through both primary and secondary data source.



 PRIMARY DATA
A primary data is a data, which is collected for gathering information first time and to
analyze the problem. In this study the primary data was collected among the consumers using
questionnaire.



 SECONDARY DATA
Secondary data consist of information that already exists somewhere, having been
collected for some other purpose. In this study secondary data was collected from company
websites, magazines and brochures.

81. l OM oAR cP SD | 23 41 2 73 5


81
CHAPTER - 5
DATA ANALYSIS AND INTERPRETATION


1) Age Group


Total Bellow 30
years
31-40
years
51-60 years Above 60 years
100 50 30 20 0
Percentage 50 30 20 0










Interpretation
According to the graph given above out of 100 respondents 50 % are below 30 years of age, 30%
are between age group of 31-40 years, 20 % are between the age group of 51-60 years and none
above 60 years, which describes that LIC policies have got maximum faith among the youths.

82. l OM oAR cP SD | 23 41 2 73 5


82
2) Gender


Total Male Female
100 60 40
Percentage 60 40










Interpretation
According to the graphs given above out of the total 100 respondents included in the study 60 %
were males and 40 % were females, which clearly defines the gender biasness, that the males have
more liking towards the LIC policies.

83. l OM oAR cP SD | 23 41 2 73 5


83
3) Total Number of Policies Bought


Total One Two More Than Two
100 40 45 15
Percentage 40 45 15












Interpretation
According to the graphs given above out of the total 100 respondents included in the study, 40%
were having one policy of LIC, 45% had two policies and 15 % more than two, which clearly
defines the faith of the people towards LIC policies.

84. l OM oAR cP SD | 23 41 2 73 5


84
4) Mode of Payment


Total Monthly Quarterly Half-Yearly Yearly
100 15 15 20 50
Percentage 15 15 20 50














Interpretation
According to the graphs given above out of the total 100 respondents included in the study, 15%
have opted for monthly payments, 15% opted for quarterly payment, 20% opted for half-yearly
payment and 50% opted for yearly payments of the premium.

85. l OM oAR cP SD | 23 41 2 73 5


85
5) Educational Qualification


Total Undergraduate Graduate Post-Graduate Doctorate
100 20 31 39 10
Percentage 20 31 39 10









Interpretation
According to the graphs given above out of the total 100 respondents included in the study 20%
were undergraduate, 31% were graduate, 39% were post graduate and 10 % were doctorate, which
clearly indicates the liking of the educated sectors towards LIC policies.

86. l OM oAR cP SD | 23 41 2 73 5


86
6) Occupation


Total Student Service Self Employed Others
100 10 50 25 15
Percentage 10 50 25 15









Interpretation
According to the graphs given above out of the total 100 respondents included in the study, 10 %
were students, 50% were from service class, 25% were Self-employed and 15 % were from other
category, which clearly indicates the liking of the service class people in LIC policies and services.

87. l OM oAR cP SD | 23 41 2 73 5


87
7) Annual Income


Total Below 1 Lac 1 Lac – 5 Lac 5 Lac – 10 Lac Above 10 Lac
100 25 55 15 5
Percentage 25 55 15 5











Interpretation
According to the graphs given above out of the total 100 respondents included in the study, 25%
were having income below 1 lac, 55% were having income between 1-5 lacs, 15% had income range
of 5-10 Lac and 5% were having income above 10 lac, which clearly defines the hold of LIC
among the largest segment i.e. average middle class.

88. l OM oAR cP SD | 23 41 2 73 5


88
8) What Kind of Investment do you prefer?


Total Short Term Long Term Both
100 30 60 10
Percentage 30 60 10








Interpretation
According to the graphs given above out of the total 100 respondents included in the study, 30%
liked short term investment, 60% liked long term investment and 10% liked both types, which
gives an opportunity for LIC to give due emphasis on short-term investment policies.

89. l OM oAR cP SD | 23 41 2 73 5


89
9) Are you satisfied with the services of LIC of India?


Total Yes No
100 75 25
Percentage 75 25









Interpretation
According to the graphs given above out of the total 100 respondents included in the study, 75 %
were satisfied by the LIC policies and services rest 25 % were not satisfied.

90. l OM oAR cP SD | 23 41 2 73 5


90
10) Give reasons for insuring with LIC


Total Brand Grievances
Handling
Undue Delay in
Claims
Public Sector
100 45 25 23 7
Percentage 45 25 23 7










Interpretation
According to the graphs given above out of the total 100 respondents included in the study, 45 %
have invested on the brand name, 25 % on its ways to handle grievances, 23 % on the basis of
timely claim settlements and rest 7% as LIC is government owned sector so the customers are
secure.

91. l OM oAR cP SD | 23 41 2 73 5


91
11) What scheme of insurance policy have you taken?


Total Whole Life Endowment Plus Money Back Pension Fund Others
100 11 15 47 22 5
Percentage 11 15 47 22 5










Interpretation
According to the graphs given above out of the total 100 respondents included in the study, 11%
have invested in Whole life, 15% in endowment plus 47% in Money back, 22% in Pension fund
and rest 5% in other policies. It’s an alarming signal for LIC to concentrate on policies and make
more lucrative for customers, which comes under other categories.

92. l OM oAR cP SD | 23 41 2 73 5


92
12) Most Likely Periodicity of Policy


Total 5 Years 5 – 15 Years 15 – 25 Years 25 Years
100 14 45 21 20
Percentage 14 45 21 20












Interpretation
According to the graphs given above out of the total 100 respondents included in the study, 14%
like policy of 5 years, 45% liked policies ranging from 5-15 years, 21% liked in the range of 15-
25 years and rest 20% liked policies of 25 years.

93. l OM oAR cP SD | 23 41 2 73 5


93
13) Satisfaction level towards services offered by LIC


Total Fully Satisfied Partially Satisfied Not Satisfied
100 55 25 20
Percentage 55 25 20









Interpretation
According to the graphs given above out of the total 100 respondents included in the study,
55% were satisfied by the services offered by LIC, 25% were partially satisfied and rest 20% were
not satisfied.

94. l OM oAR cP SD | 23 41 2 73 5


94
14) If you buy a new policy would you like to go for LIC?


Total Yes No
100 70 30
Percentage 70 30











Interpretation
According to the graphs given above out of the total subjects 100 included in the study, 70% said
that if they will buy new policy they will definitely go with LIC only 30% said no regarding further
investment with LIC.

95. l OM oAR cP SD | 23 41 2 73 5


95
15) In one word perception toward LIC of India


Total Yes No
100 80 20
% 80 20












Interpretation
According to the graphs given above out of the total respondents 80% have got positive perception
towards LIC whereas 20% have got negative perception towards LIC, which fulfills the motive of
our study that customers of LIC have got faith in it and want to stuck with it in near future, they
feel that their investment is secure and hassle free returns they will get at due time.

96. l OM oAR cP SD | 23 41 2 73 5


96

CHAPTER - 6
FINDINGS, SUGGESTIONS AND CONCLUSION


FINDINGS
The results of our poll can be summed up as follows: Bank deposits are the most popular
investment option that people can choose from, followed by options like insurance, real estate,
gold and silver, mutual funds, etc. Following money growth plans like wealth creation and high
return plans, life protection schemes like death benefits were the most popular among insurance
holders. The majority of respondents favoured both long-term and short-term investments, with
nearly half of them typically saving less than 15% of their income. According to the survey, among
all respondents' approved criteria for their investment options, safety comes in first, followed by
return, brand name, tax advantages, liquidity, and capital growth. According to the study, company
image is the most crucial factor that we should take into account before purchasing life insurance.
This is mainly because people expect safety and security for the money that they invest. The next
most important factor is the premium that we pay to the insurer, followed by bonuses, interest
payments, and other benefits provided by the company.

It is evident that young individuals between the ages of 20 and 40 make up the majority of
investors—more than half—in insurance. It may be claimed that men are more likely than women
to own life insurance plans. Most life insurance policyholders are employed. Unit linked plans are
the most popular option among investors due to their excellent returns. Nearly 80% of sold
insurance have a 5–25 year periodicity. It is very obvious that LIC consumers have a considerably
greater awareness level. Although a larger percentage of LIC's clients are either completely or
slightly pleased, there aren't many notable differences between sectors in terms of service quality
satisfaction levels. Customers were pleased with the ethics, competence, and helping gestures
displayed by LIC employees and agents, who are easily approachable. Two fifths of LIC customers
are completely happy with its grievance resolution procedure, and the majority of respondents to
the company's survey believe that the formalities for obtaining a policy are not difficult and do not
require much time at first. The fact that more than 45 percent of LIC customers believe there is no
delay in claim settlement and that many of them feel their agent gives them accurate and pertinent
information is an opportunity for LIC. It is also clear that individual risk coverage is the most
popular criterion among investor sectors, so the justification for investment is essentially the same.
Last but not least, LIC was obviously given the go-ahead because 88% of respondents had a
favorable opinion of the company, and if they again chose a new policy, they would only go with
LIC of India because, after investing with them, they felt their money was safe and secure and they
didn't have to worry about anything.

We see that due to excellent service quality and attractive offers private insurance companies have
started getting a number of customers. They are growing rapidly. Though, LIC is also increasing
its customer base but private insurance companies are moving at a fast pace. Though the income

97. l OM oAR cP SD | 23 41 2 73 5


97
of private insurance companies is negligible when compared with LIC but then also the pace with
which they are increasing their income is tremendous. LIC is certainly having a large customer
base. Market share for LIC in the last financial year has increased 6% from financial year 2010-
2011, at that time it was 72% and now it is 78%.

In this area, LIC is well ahead of private insurance firms. When it comes to insurance profit, they
are without a doubt the best. Although private insurance companies are winning more and more
new business, LIC nevertheless has a very solid customer base. They are ahead of private insurance
businesses in terms of offering new policies per branch as well, though not by a huge margin. The
LIC has a very large customer base, and they continue to outperform private insurance companies
in terms of business, profit, and premium per branch.

The results of my poll can be summed up as follows: Bank deposits are the most popular
investment option that people can choose from, followed by options like insurance, real estate,
gold and silver, mutual funds, etc. Following money growth plans like wealth creation and high
return plans, life protection schemes like death benefits were the most popular among insurance
holders. The majority of respondents chose both long-term and short-term investments, with over
50% of them typically saving less than 15% of their income. According to the survey, among all
respondents' approved criteria for their investment options, safety comes in first, followed by
return, brand name, tax advantages, liquidity, and capital growth. According to the study, company
image is the most crucial factor that we should take into account before purchasing life insurance.
This is mainly because people expect safety and security for the money that they invest. The next
most important factor is the premium that we pay to the insurer, followed by bonuses, interest
payments, and other benefits provided by the company.

98. l OM oAR cP SD | 23 41 2 73 5


98
SUGGESTIONS
1. To increase the level of insurance penetration LIC may focus on bringing products that suit
to the rural customers.
2. The company if possible should invest in advertising, conduct road shows, and spend
money on hoardings, so that it can better propagate awareness about its various lesser
known products.
3. LIC should also tie up with several other banks apart from the existing ones to sell its
products i.e. through banc assurance
4. The company has the option of tying up with local NGO’s for selling its rural insurance
products.
5. Customer friendly documentationi.e.it should be made easier and faster.
6. LIC should keep a check that its agents equally promote all its products.
7. LIC may provide additional funds to its development officers and agents.
8. All the hidden charges should clearly be stated in the form and explained by the agent and
LIC should provide better training to its agents.
9. Claim settlement process should be made fast and must not involve lengthy decision
making process.
10. Some special focus should be laid on individual risk coverage while designing the products.
11. People becoming more aware and demanding so there is scope for a whole lot of innovative
products.
12. To sell insurance products through electronic Medias.
13. The lack of comprehensive social security system combined with a willingness to save
means that Indian people demand for pension products will be large. Thus, it has become
an opportunity for the life insurance industry.
14. Easy accesses to development in the more advance market provide further opportunity to
upgrade their working. Technological, financial or specific area based avenues of
absorbing improved system are also now more easily available. So, that insurance
companies working efficiently and fast service.

99. l OM oAR cP SD | 23 41 2 73 5


99
CONCLUSIONS


With the help of insurance, a small number of fatalities can be compensated with money from
wealthy sources. An effective defense against unforeseen future disasters is insurance. Before
purchasing life insurance, people give the company's reputation a lot of weight. The main reason
for this is that people demand security and safety for the money they invest, which comes after the
premium we pay to the insurance and before bonuses and interest provided by the business, among
other things.

The insurance market in India is dominated by LIC. Customer satisfaction has emerged as a crucial
factor in today's competitive market in order to keep consumers, grow, and provide services.
Companies value happy, highly lucrative consumers as a result of increased competition, a wide
range of product offers, and numerous distribution channels. The key to a company's success is its
ability to provide excellent customer service, which sets exceptional customer service apart from
average customer care.

Private insurance companies' introduction into the Indian insurance market led to a number of
developments in the sector. Despite the fierce competition in the market, the study shows that the
LIC's products are innovative, creative, and popular with customers. In addition, customers are
satisfied with the company's or its agents' genuine knowledge and the products' accessibility. They
are also pleased with the flexible payment plans with no hidden fees, the fact that claims are settled
without undue delay, and the prospect of improved grievance redressal procedures in the near
future.

100. l OM oAR cP SD | 23 41 2 73 5


100
QUESTIONNAIRE


A Study on Perception of Investors Investing in Life Insurance (With Special Reference to
Mumbai city)

Dear respondent,
This questionnaire is aimed at understanding your perception about Life Insurance Corporation of
India .Your response will be dealt with strict confidentiality and it will be used only for academic
purpose. Thank you for spending your valuable time to fill this questionnaire.



Name:


Gender Male Female




1) Age Group
a) Below 30
b) 31 – 40 years
c) 41 – 50 years
d) 51 – 60 years
e) 60 years and above


2) Total number of policies bought
a) One
b) Two
c) More than two


3) Mode of Payment
a) Monthly
b) Quarterly
c) Half-Yearly
d) Yearly

101. l OM oAR cP SD | 23 41 2 73 5


101
4) Educational Qualification
a) Undergraduate
b) Graduate
c) Post Graduate
d) Doctorate


5) Occupation
a) Student
b) Service
c) Self Employed
d) Others


6) Annual Income
a) Below 1 Lac
b) 1 Lac – 5 Lac
c) 5 Lac – 10 Lac
d) Above 10


7) What Kind of Investment do you prefer?
a) Short Term
b) Long Term
c) Both


8) Are you satisfied with the services of LIC of India?
a) Yes
b) No

9) Give reasons for insuring with LIC
a) Company Profile
b) Brand
c) Grievances Handling
d) Undue Delay in Claims
e) Public Sector
f) All of the above

10) What scheme of insurance policy have you taken?
a) Whole Life
b) Endowment Plus
c) Money Back
d) Pension Fund
e) ULIP
Others

102. l OM oAR cP SD | 23 41 2 73 5


102
11) Most Likely Periodicity of Policy
a) 5 years
b) 5 – 15 Years
c) 15 – 25 Years
d) Above 25 Years

12) Satisfaction level towards services offered by LIC
a) Fully Satisfied
b) Partially Satisfied
c) Not Satisfied

13) If you buy a new policy would you like to go for LIC?
a) Yes
b) No

14) What is Overall perception about LIC of India?
a) Yes
b) No

103. l OM oAR cP SD | 23 41 2 73 5


103