A Study on Public Relations of Life Insurance Corporation of India

8/13/2019 A Study on Public Relations of Life Insurance Corporation of India

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INTRODUCTION

Public Relations, commonly called as PR is an activity aimed at increasing common &

understanding between an organization or individual & one or more groups called

Publics.

What Is Public?

Public is a group of similar ideas, an assortment of persons having the same interests,

problems, circumstances & goals. They vary in their forms & sizes they have a multitude

of wants & desires. Each group has its own lies & dislies. !roup can be classified

as"# Employees form a group$public, employers form another group, etc. %ther members

of the public can be dealers, wholesalers, investors, etc. Each of these group is a public &everyone tries to attract a district audience with its varied tools & techniues. ' public

may also be made up of a no. of individuals who are unorganized & hard to identify but

who for widely varied reasons have a common interest in the matter at issue.

Today, however, when modern means of common mae vast number of people aware of

controversial issues & common interests, publics tend to be large &impersonal. These

publics involve people who are not nown to each other & are widely distributed over the

country, or even among a number of countries. The members of such public rarely meeteach other face to face or have much direct communication. The impersonal but powerful

publics are numerous in today(s high comple) society. *ut finally the public is any group

of people who share common interest.

Relations:-

+t is the outcome of mutual understanding derived from the process of sharing of common

interest where as relationship is the definite type of relation or interaction taing place

between two individuals, group or departments. To understand any relationship, therefore

it is necessary that one understands the wants of those involved. The term PR is also

applied to the profession responsible for handling such assignments. orporations, govt.

agencies, politicians & entertainers are among these who use public relations. Their

publics vary from employees & shareholders to an entire community or members of the


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news media. The communication between an organization & its public ranges a simple

news release to a sophisticated campaign featuring films, ad(s speeches & television

appearances. -uch communication is aimed at gaining the goodwill of the public. The

basis of any effective PR campaign is public benefit. +f an organization does not serve the

needs of public, the public will not support it. PR e)perts help an organization learn what

the public wants & then establish policies that reflect concern for public(s interests.PR

generally is practiced through"#

1.Corporate PR dept

"# +n a corporate department, specialists handle corporate PR activities for only that

company.

.PR !"encies

"# +n agencies specialists carry out PR activities for several companies

#.Public In$or%ation Depart%ents

"# on#profit organizations lie colleges and !overnment agencies have publicinformation departments that wor to strengthen the image of the organization.

&istor'

Public Relations as a term was first formally used by /Thomas Jefferson in the year

0123, while drafting his seventh address to the congress delegates when he scratched out

the words 4-tate %f Thought and wrote 4Public Relations instead. +nformally -ir

5alter Raleigh used it even earlier during the 6and Rehabilitation 7ovement , while

persuading people from different parts of 'merica to settle in the rural parts of 8irginia.

This was the first organized effort to win and mobilize public opinion. +n +ndia , the term

of course gained importance later through the Public Relations -ociety of +ndia 9PR-+: in

0;


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Public relations, despite being over a century old across the world, began in +ndia in the

early 0;;2s. Though there were several individuals and small companies which started

even before that, they offered PR with the limited scope of media relations only. +t was

only natural that the entrepreneurs who began these services came from a bacground of

=ournalism, seen as a natural hunting ground for the nascent PR industry.

()(*(NT+ O, PU)IC R()!TION+:

1.&u%an relations:

+t is getting along well with the word public both internally or e)ternally. o person can

wor independently & everyone who wors in an organization directly or indirectly

depends on one another.

.(%path':

Empathy means feeling with the other person to analyze others point of view & is

regarded as primary pre#reuisite for a satisfying e)perience in a relationship where a

certain degree of depth of understanding is e)pected.

#.Persuasion:

There are > forms of interaction between individuals or groups a:?orce or compulsion b:

persuasion.

+f one party compels another to do something instead of perusing him this is called

@espotism. +t is against the principle of proper conduct sanctioned by society. ' sense of

human interest on the person who is being persuaded will understand & appreciate the

cause & effect of this action.

.Dialo"ue:

+t is a conversation with purpose. +t is not a bargain basement transaction but it is a low

form of negotiation. @ialogue is a reasonable e)change of ideas bringing into view a new


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form of nowledge, the use of dialogue is for influencing behavior lie selling goods or

inspiring innovative ideas.

O/(CTI0(+ O, PU)IC R()!TION+

The main ob=ective of public relations is to establish good understand#ing by sharing a

common problem or interest with the public. *y public where mean both an internal

public and a public e)ternal to the organisation. 7utual understanding can be established

only by sharing a common interest, by communication and relations.

Aowever, the following are the broad ob=ectives of public relations"

0. To promote mutual understanding.

>. To avoid the ris involved in misunderstanding.

B. To win friends.

C. To influence people.

. To forestall attac by the competitors or opponents.

0B. To undertae a public relations education program.


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0C. To help the public to love life and wor for better or for worse without conditions.

02. To sponsor dealer and distributor relations schemes.

>0. To undertae programmes lie sales training courses for retailers, wholesalers.

>>. To establish press relations, publicity articles preparation, press release, photographs.

>B. To communicate with the employees on their benefits, accident prevention labour

relations and collective bargaining.

>C. To undertae a campaign of public education about an industry or profession and its

contribution to the public.

>


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1. Polic'

" Public relations policy is reuired for every organization. ' policy is a statement of

guidelines to be followed in the company. The department has to develop and

recommend corporate public relations policies. +t has to contribute the public relations

view point which helps in the formulation of decision. +ts function is not merely to

provide the policy mainly to the top management but also to other sections and divisions.

. Publicit'

" orporate publicity is necessary to interact with the public. The department has to

undertae the development and issuance of announcements of corporate activities to

e)ternal communications media. +t has to handle inuiries from the press. +t is part of the

functions of the department to develop and place promotional publicity about the

company as a whole or any of its units.

#. Product Publicit' :

orporate publicity is different from the product publicity. +n this, focus is on the

products and how to popularize the product. This includes both new products as well as

e)isting ones. +t includes the announcement of new products through the editorial

channels of the communications media. The department has to develop and e)ecute the

promotional product publicity campaigns.

. Relations ith 2o3ern%ent"

Relations with government cannot be overlooed. +n all spheres of activities the

government inter#fares, regulates, controls and supervises. +t is necessary to maintain

liaison with appropriate governmental departments. This liaison covers both the local

level, state level and national level. *esides, governmental relations includes"9i: advise

action as needed.9ii: report trends in government affecting the company.9iii: help in

preparing and directing corporate appearances before investigating bodies of legislative

hearings.9iv: direct programmes designed to promote the companys point of view in

legislative or regulatory matters.


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4. Co%%unit' Relations"

ommunity contacts should be planned. +t is the performance and$or coordination of

corporate good neighbor activities, including compliance with environmental protection

standards, fostering eual employment opportunity, cooperating in urban improvement

programmes, and developing community understanding of a companys problems and

needs.

5. +hareholders Relations6

Relations with the corporate stocholders is more important to attract public money. This

taes the form of communication between the company and the shareholders in

particular. 'lso the investment community in general. +t is necessary for the development

tend acceptance of the company among investors by broadening the e)posure of the

companys policies and financial results in the investment community. This function

includes preparation of annual reports, uarterly reports, dividend cheue inserts etc. +t

has to plan and stage the annual meetings of stocholders and appearances before

meetings of security analysts.

7. Pro%otion Pro"ra%%es:

Public relations promotion programmes should be formulated and implemented. This

may broadly cover institutional promotion programmes designed to build corporate

acceptance of ey policies, institutional advertising, public relations literature and special

events.

8. Donations:

' corporate donation policy should be developed for company contributions# 8arious

aspects involved in this function are processing reuests for donations administering

companys foundation, and the conduct of employees /solicitations for approved drives.

9. (%plo'ee Publications:

The public relations department has to prepare and publish employee magazines,

newspapers, bulletins, management communications etc.


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1. 2uest Relations

The department must undertae guest reception activities.


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&I+TOR;

The story of insurance is probably as old as the story of manind. The same instinct

that prompts modern businessmen today to secure themselves against loss and disaster

e)isted in primitive men also. They too sought to avert the evil conseuences of fire and

flood and loss of life and were willing to mae some sort of sacrifice in order to achieve

security. Though the concept of insurance is largely a development of the recent

past, particularly after the industrial era F past few centuries F yet its beginnings date

bac almost D222 years.

6ife +nsurance orporation of +ndia was created on 0st -eptember, 0;0> branch offices, apart from its

corporate office in the year 0;22.22 crores of ew *usiness in 0;222.22 crore

mar of new business. *ut with re#organization happening in the early eighties, by 0;1


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hennai, Ayderabad, Golata, ew @elhi, Pune and many other cities. 5ith a vision of

providing easy access to its policyholders, 6+ has launched its -'TE66+TE -'7P'RG

offices. The satellite offices are smaller, leaner and closer to the customer. The digitalized

records of the satellite offices will facilitate anywhere servicing and many other

conveniences in the future.

6+ continues to be the dominant life insurer even in the liberalized scenario of +ndian

insurance and is moving fast on a new growth tra=ectory surpassing its own past

records.6+ has issued over one crore policies during the current year. +t has crossed the

milestone of issuing 0,20,B>,;


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O/(CTI0(+ O, PU)IC R()!TION+ IN )IC

The ob=ectives of undertaing PR activities in 6+ are manifold. +n their itizen(s

harter the company states that"

TO T&( CO**UNIT; :

5e will onduct all aspects of our business eeping in view the interests of the

community and the national prioritiesI Provide insurance cover and financial security to

every insurable segment including the socially and economically weaer sections of the

society.

TO OUR CU+TO*(R+:

5e will provide them prompt, efficient and courteous serviceI act as trustees of their

funds and invest them to their best advantageI build and maintain enduring relationshipI

eep them informed about our products and services etc.

TO OUR WOR


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OR2!NI=!TION !ND +T!,,IN2 O, T&( PU)ICR()!TION+

D(P!RT*(NT

6+ is purely a servicoriented organization. 7oreover for transacting with their customer

s and business associates the company needs to develop and maintain cordial relations

with various sections of the society and various other agencies i.e. their publics. This

maes the role of PR in 6+ even more important and vital. The company has a huge and

active Public Relations @epartment which loos after the publicity of the various services

offered, maintaining cordial relations with the various publics, publishing of =ournals, etc.

and other PR activities.

ud"et:

The management allocates Rs. >#B crores 9appro).: annually to the PR @epartment.

Thisamount is then further allocated to the various Jonal %ffices which prepare their indi

vidual budgets according to their reuirements.

+ta$$in" O$ PR Depart%ent

The @irector#PR operates from the central office and has under him a hief PR%. Each

Jonal %ffice has a Jonal 7anager#PR under whom is the Regional 7anager#PR.

?urther under him is the 'ssistant -ecretary who wors with his -ubordinate staff to

fulfill the day#to#day activities of the PR @epartment.

! PR plan is %ade at the be"innin" o$ each accountin" 'ear $or

hichthe Chair%an appoints a PR Plannin" Co%%ittee. This co%%itteeco%prises

o$ the Director PR> Chie$ PRO> etc. Tass and !cti3ities under the pur3ie o$ PR

at )IC.

%f the various activities undertaen by /6ife +nsurance orporation( some are

listed below"


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!d3ertisin"

Though countywide advertising is done by the mareting department, advertising locally

in the various cities is handled by Jonal %ffices. The advertising strategy is very

well planned and is largely aimed at image building.

Or"ani@e press con$erences

Press conferences are organized occasionally, generally when a new policy is released

or when the annual financial results are announced or if something of significance has

happened.

Issue Press Releases

Press Releases are issued both by the central office as well as the various zonal offices.

Participate in public aareness pro"ra%%es

6+ has time and again =oined itself with various community development and

awareness programmes for the cause of rural development and infrastructure

development.


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PU)IC+ I*PORT!NT TO )IC

INT(RN!) PU)IC+

Employees

Employee(s families

-taff Knions

(AT(RN!) PU)IC+

ustomers i.e. policy holders

Prospective ustomers

!overnment 'gencies

*ans and ?inancial +nstitutions

-tatutory *odies e.g. +R@' 9+nsurance Regulatory and @evelopment 'uthority:

-ocial %rganizations

6awyers

6ocal 'dministration

7edia

!eneral Public

'uditors


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R()!TION+&IP WIT& +I2NI,IC!NT PU)IC+

-ignificant internal publics of the organization are its

Employees

Employees( familiesI and the

-taff unions.

(*P)O;(( R()!TION+

+n most +ndian organizations, or companies, communications with employees have sofar been given a bac seat as compared to e)ternal communications. This has not been

the case with 6+. +t has through time realized the importance of its internal publics.6+

shares a good rapport with its employees. There are various staff unions to tae care of

the employees rights. The company shares a cordial and harmonious relationship with

these unions. The company(s focus, as regards its employees, is on providing"

' healthy woring environmentI

Employee friendly AR@ policyI

Lob securityI

Training of Auman resourcesI

?ully utilizing its people(s talents and capabilities to promote sills andcompetenc

ies and broaden their perspectiveI

Aandsome remuneration and pers.

The company achieves the above ob=ectives by a number of means.

I. &OU+( /OURN!)+


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The corporation has a corporate house magazine /M%!'G-AE7'( which chronicles

corporate and organizational events and pronouncements. The corporation also releases a

uarterly newsletter /L'G'6M'( which serves the above mentioned purpose as well

as acnowledging employee achievements and produce merit lists of employee

performance.

II. INT(R!CTION

The corporation also conducts open houses, meetings, seminars, worshops. This is done

with the aim of facilitating two#way communication.

III. R(W!RD+

Prizes are awarded to top performers at staff meetings and conferences. Rewards are

given in the form of holiday, a family trip or some monetary gain.


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CON+U*(R R()!TION+ IN )IC

+n consonance with the changes taing place in the insurance maret, the corporation has

undergone a transformation, simultaneously reuiring a revamp in its image. -ystematic

and focused PR initiatives and widespread publicity have resulted in maredly improved

visibility. The corporation has emerged with a much younger and sleeer image.

' conscious effort was made to bring about a transformation in the corporate

image.Through various campaigns, the corporation tried to depict the organization as one

oriented towards the younger generation. The corporation advertising campaigns assisted

the mareting strategies.

PR !cti3ities $or Consu%er Relations

The business of insurance is purely service which cannot be seen or held. Aence, the

consumer relations activities of 6+ concentrate on the customer public and building

relations with prospective customer. The corporation has time and again made endeavors

to reach out to the consumers, interact with them and eep them satisfied. Thecorporation tries to achieve its ob=ective through a number of means

Oral Co%%unication

%ral communication with the consumer public is the most effective means of presenting

facts and creating understanding of the organization(s policies and practices.

(%plo'ee-Consu%er Co%%unication:

The harmonious relationship that 6+ has, through the years , built and maintained

withits customers has only been possible due to its dedicated and committed team of @ev

elopment %fficers and scores of +nsurance 'gents throughout the country.

Press Con$erences


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Press onferences are organized to announce new appointments of top e)ecutives,introdu

ction of new schemes, etc. +t is very important in today(s world because ow F a F days

people are being aware about the appointment procedure of different companies and

consumer are also getting educated day by day because of which it becomes necessary

for the companies to eep press conferences.

!udio-0isual Co%%unication

Television and Radio broadcasts are a basic medium of consumer communication. ow

F a#days it gaining a lot of importance.


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Tele3ision and Radio ad3ertisin"

The corporation(s advertisements reached nearly >< crore people through over


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/ournals and Publications

The corporation taes out its annual woring results and several other publications from

time to time to eep the public abreast of the happenings and achievements at 6+.

,inancial Results

The annual financial report of the corporation is published in the ational dailies and is

also circulated amongst the shareholders to eep them informed. +t also aims at attracting

new investors.

oolets> rochures and Pa%phlets

*oolets, *rochures and Pamphlets are generally taen out to inform its internal and

e)ternal public about its various new schemes and act as an effective medium of print

communication.

Posters and &oardin"s

These tools are not only an advertising medium but also a very effective PR tool. 6+

uses posters and hoardings to get uic public notice. Posters and hoardings are


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widely placed throughout the city at busy intersections lie subways, railway stations,

roadsides, bus shelters, etc.

Other !%enities Pro3ided b' )IC

Website

The orporation(s website www.licindia.com gives information about the

corporation(s products, services, subsidiaries and addresses of branches and about

premium payment through the internet. +t also provides

o Press releases

o

ews sections

o %nline policy status

Online Pre%iu% Pa'%ent

6+ has tied up with A@? *an, +++ *an, KT+ *an, *an of Pun=ab, !lobal Trust

*an, orporation *an, The ?ederal *an 6td., itiban, and service providers lie

*illLunction.com, timesofmoney.com to offer the online premium payment facility to its

customers in select cities.

In$or%ation


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!overnment 'gencies

*ans and ?inancial +nstitutions

-tatutory *odies e.g. +R@' 9+nsurance Regulatory and @evelopment 'uthority:

'uditors

To communicate with them and to eep them informed of the company(s progress several

activities are undertaen by the PR @ep(t.

The 'nnual !eneral 7eeting

The 'nnual Report

The annual report is released annually to inform all publics of the company(s

woring results.

hairman(s -tatement

The chairman(s statement is a comprehensive guide to what the company is and where it

strives to be. +t comprises of the corporation(s corporate vision, philosophy and policies,

management contributions, future plans and a host of other such important aspects.

CO**UNIT; R(!)TION+ IN )IC

6+ regularly provides /Aealth vans( to various organizations across the country. The

corporation also sponsors many sports events at the national level. umerous

publicity pro=ects with a social purpose are undertaen at the zonal level. Recently the

orth Jone 9@elhi: associated itself with the /Perfect Aealth 7ela( to propagate the

cause of good health.

!I* O, CORPOR!T( R()!TION+ ,U),I))(D !T )IC


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The aim of any organization is to create for itself"

'.%RP%R'TE +@ET+TM

*.%RP%R'TE +7'!E

.%RP%R'TE +T+JE

!. CORPOR!T( ID(NTIT;

+mage ommunicators$ +dentity reators

Co%pan' )o"o

The company(s logo has become synonymous with insurance and security in +ndia . +t

helps to identify the company easily.

+i"n-up )ine

BWe


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The above listed image communicators have been very successful in creating a corporate

image of 6+ in the minds of the people over the years since its establishment.

C. CORPOR!T( CITI=(N

5ith all its PR initiatives and activities, since its establishment, 6+ has proved to be a

successful corporate citizen.

Corporate Polic' o$ )IC on Public Relations

Public Relations aims at building#up and maintaining sound, effective and productive

relations with the public so as to help the organization to understand and interpret the

environment as also help the public and the society at large to appreciate the performance

and limitations of the organization. Public Relations has the responsibility to build and

maintain two#way relations between the Public and the %rganization at all levels.

The Public in the case o$ )IC includes:

'. 6evels of employees and agents.

*. ustomers.

. !overnment" entral, -tate & 6ocal bodies.

@. 7edia, Press, T.8., Radio & 'gency#owners and correspondents and

E. itizens at large.

' clearly laid down Public Relations Policy, therefore, is essential to set the goals,

indicate the strategies and give proper direction to all levels in the area of Public

Relations.

*I++ION


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Establish understanding and develop awareness of mutual aspirations of 6+ and the

Public.

2O!)+

0. Promote within the orporation greater awareness of the changing environment

and he need to align the corporate policy to the emerging situation.

>. Aelp fashioning, within the constraints, its policies,programmes, practices andPro

ducts to meet the e)pectations of the Public. Aelp the public to appreciate the

Performance and the limitations of 6+.

B. 7ae PR occupy the front seat in the organizational set#up.

+TR!T(2;

0. @evelop e)cellent relations with the totality of the media#print, electronics an

agency openers an reporters by regular e)change of information with them.

>. Establish relations#and develop understanding with the !ovt. #entral, -tate

& 6ocal bodies through legislators and !ovt. officials.

B. @evelop full understanding with the worers#employees at all levels and agents

on %rganizational goals, policies, practices and programmes.

C. @evelop an effective system of communication with the departments and

operating units on the environment and on implementation of policies.


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3. Aelp to develop an image of 6+ as a responsive organization,1. @evise methods

for opening up channels of two#way communication with various publics of the

orporation.

!CTION P)!N

0. Geeping the ob=ectives, philosophy and the strategies in view, drawing#up annual

PR plans by *ranches, @ivisions, Jones & orporate %ffice.

>. @evelop an effective system of periodical reviews of PR Plans at all levels #

*.%.,@.%., J.%. and orporate.

B. @evelop streamlined methods of systematic dissemination of the information

relevant to each of the public(s.

C. @evelop streamlined methods of receiving messages$feedbacs from the totality

of the publics.


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Press conference & interview are arranged periodically by all 6.+.. offices #

i.e. ,entral, Jonal, @ivisional and *ranch offices at the time of launching any

new scheme and to inform about the policies , programmes and activities to the

press so that it can be publicized.

)IC W( +IT(

6+ has its own web site 6icindia.com which provides information about 6+

and its subsidiaries and the products offered by them.

U+!2( O, IN,OR*!TION T(C&NO)O2;.

5ith a view to providing uic and accurate service its ustomers 6+ has

introduced on#line service through front F end terminals in 0;;B branches and

soon all our customers will be able to benefit by this.

2R(I0!NC( R(DR(++!) *!C&IN(R;

6+ has established an elaborate !rievance Redressal machinery in order to dealwith problems of customers. The grievance redressal cells are operative at all

levels i.e. *ranch, @ivisional, Jonal and orporate offices. -pecially designated

officers attend to policyholders complaints.

R!)); OR2!NI+!TION

6+ has organized a massive rally to pay homage martyrs of Gargil to provide

moral support to the +ndian army.

PR !ND PU)ICIT; CON,(R(NC(+

PR and Publicity onferences arranged at the central office in which the

hairman emphasized the need to reposition the organization the organization in

the emerging cooperative scenario with the help of revised PR and publicity


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strategies because it was found out by a survey that the level of customer

satisfaction is not very high.

C)!I* R(0I(W CO**ITT((+

' claims review committee was being formed at the corporate level with a

retired Ludges one of the members and it handles grievances arising out of

repudiation of claims etc. -imilar committees are also constituted at Jonal level.

PR(++ R()(!+(+

Press releases regarding important news are released from time to time so that

people are ept informed and they now about them.

CU+TO*(R *((T+

Periodical customer meets are organized at @ivisional and *ranch level to

facilitate greater interaction with policyholders.

PU)ICIT; P!0I)ION

Publicity Pavilion are arranged to display information about PR and Publicity

activities of 6+.

CON+U*(R+ !,,!IR CO**ITT((

' high profile committee has been constituted by the entral office with eminent

persons from the consumer(s movement being its member to advice and guide

6+ on matters concerning consumer interests.

(A&IITION+

6+ arranges its various schemes and e)hibitions so that it can display its various

schemes and plans.

Citi@ens Charter


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The corporation has adopted a itizens harter wherein commitments have been

made toits customers for higher standards in servicing.

,R(( P&ON( C!)) ,!CI)IT; TO T&( PO)IC; &O)D(R+

' uniue facility of free phone call service is being provided to the policy

holders of 7umbai city to enable them to have easy access to grievance redressal

officers over the phone.

+PON+OR+&IP

6+ sponsors many events lie chess tournaments table tennis tournaments for

the employees and also for the general public. +t has also sponsored a health

camp organized by /7asoom( F an organization of understanding and fraternity.

DI+TRIUTION O, D!IRI(+ !ND C!)(ND!R+

6+ distributes dairies and calendars to its employees and also to the general

public every year.

PU)ICIT; +T!))+

Publicity stalls are been put up by 6+ at different fairs and melas to publicizethe corporation and its schemes and plans.

PU)IC ,UNCTION+

+nauguration of new offices helps in communication as well as in enhancing the

image of the corporation.

!D0(RTI+(*(NT IN N(W+P!P(R !ND *!2!=IN(

'dvertisement about 6+(s products, activities and policies is published in

newspapers and magazines.

&OU+( *!2!=IN( ;O2


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Mogshema is the house magazine of 6+. +t provides information about the

corporation, its activities, policies and programs.

!D0(RTI+(*(NT !T R!I)W!; +T!TION !ND !IRPORT

Posters and banners are set up at strategically important public places such as

'irports,Railway stations, *us terminals, shopping counters an at the reception

counters of the business premises. This enables the policy holders to access

information about 6+ & its products etc.

IN+UR!NC( W((

A Study on Public Relations of Life Insurance Corporation of India

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Transcript of A Study on Public Relations of Life Insurance Corporation of India