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Specialization :
By : Aseem P. Pathak
Project Guide : Ashwin Dhala
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ANALYTICAL STUDY OF INSURANCE POLICIES
OFFERED BY LIFE INSURANCE CORPORATION OF
INDIA
(FIVE YR 2008-2012)
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INTRODUCTION OF TOPIC
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Financial Management means planning, organizing, directingand controlling the financial activities such as procurement and
utilization of funds of the enterprise. It means applying general
management principles to financial resources of the enterprise.
Life Insurance is considered to be an important part of an
individuals investment portfolio, not necessarily to accumulatewealth, but to feel financially secure. Other then this when you
opt for a life insurance policyyou enjoy other benefits also, like
tax-deduction options, and in some cases long term capital
gains. What is important when you opt for a policy is the term
and plan related to that particular policy. Always remember LifeInsurance is primarily made keeping your family and those who
are dependent on you in mind. There are various companies that
would ask you to opt for a policy from them, and incase if you are
an amateur investor and try to push things in a hurry, you might
end up settling for a wrong deal. Here, we will discuss on a fewguidelines that an individual should follow prior to opting for a
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Company Profile
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Life Insurance in its modern form came to India from England inthe year 1818. Oriental Life Insurance Company started by
Europeans in Calcutta was the first life insurance company on
Indian Soil.
All the insurance companies established during that period were
brought up with the purpose of looking after the needs ofEuropean community and Indian natives were not being insured
by these companies. However, later with the efforts of eminent
people like Babu Muttylal Seal, the foreign life insurance
companies started insuring Indian lives.
In 1907, Hindustan Co-operative Insurance Company took itsbirth in one of the rooms of the Jorasanko, house of the great
poet Rabindranath Tagore, in Calcutta. The Indian Mercantile,
General Assurance and Swadeshi Life (later Bombay Life) were
some of the companies established during the same period.
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OBJECTIVES OF THE STUDY
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How Life Insurance Corporation of India Insurance is bestservices providers as a Life Insurance Company.
To know about the awareness towards Insurance & benefits
of Insurance.
To study about the effectiveness & efficiency of Life
Insurance Corporation of India Insurance in relation to its
competitors.
To study about whether people are satisfied with Life
Insurance Corporation of India Insurance Services &
Management System or not.
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HYPOTHESIS OF THE STUDY
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Consumer in favour of buying the insurance policy of LifeInsurance Corporation of India insurance.
To study the service quality being offered by Life Insurance
Corporation of India.
To clearly understand the rationale behind the investment in
policies of Life Insurance Corporation of India.
To analyze various problems confronted by the policyholders ofLife Insurance Corporation of India.
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THEORETICAL PERSPECTIVE
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Theoretical studies of life and non-life insurance companies,
covering a range of topics relevant to capital and surplus
modeling of life and non-life insurance companies, including
Economic Capital calculations, stochastic reserve and capital
calculations, embedded value analyses, and stochastic productpricing and risk management.
Taken together, these case studies cover most of the widely-
used insurance applications of stochastic modeling to date, and
provide an illustrative framework from which future applications
can be developed.
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INTERPRETATION
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Particulars Response Percentage
Jeevan Arogya 6%
Bima Account 5%
Jeevan Anurag 9%
Jeevan Kishor 8%
Jeevan Adhar 8%
Jeevan Vishawas 7%
Jeevan Mitra 6%
Jeevan Anand 5%Money Back With Profit 10%
Bima Bachat 9%
Jeevan Bharthi 8%
Whole Life Policy 10%
Joint Life Plans 9%
Q1) Are you having any policy/ policies?
Interpretation
As seen in the graph above maximum respondents are used 10% Money Back with Profit and 10% Whole Life Policy thanothers 6% Jeevan Arogya, 5% Bima Account, 9% Jeevan Anurag, 8% Jeevan Kishor, 8% Jeevan Adhar, 7% Jeevan
Vishawas, 6% Jeevan Mitra, 5% Jeevan Anand, 9% Bima Bachat, 8% Jeevan Bharthi, and last 9% Joint Life Plans.
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Particulars Response Percentage
Insurance Plan 9%
Children Plans 11%Plans For Handicapped dependents 8%
Endowment assurance plans 7%
Money back plan 18%
Special money back plan for Women 16%
Whole life plans 19%
Joint Life Plan 12%
Q2) Which Type of Policy/Policies you have taken?
Interpretation
As seen in the graph above maximum respondents are used 19% Whole life plans, 18% Money backplan, than others 9% Insurance Plan , 11% Children Plans , 8% Plans For Handicapped dependents , 7%Endowment assurance plans , 16% Special money back plan for Women and last 12% Joint Life Plans.
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Particulars Response Percentage
Yes 61%
No 22%
Will think 17%
Q3). Are you interested in products offered by the Life Insurance Policy?
Interpretation
The good thing is that at least the corporate were quite eager to find out what LIC Life Insurance Policy has tooffer whereas the major 61 % of the corporate were not even interested in the products as they are quitesatisfied by the LIC and they are not in breaking their long relationship with them. The private players will haveto play a long battle in order to ensure that they are serious player in the market.
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Particulars Response Percentage
Yes 95%
No 5%
Q4). Are you satisfied with your present insurer Life Insurance Policy?
Interpretation
Here is where the challenge is. Inevitably most of the players are very satisfied with their present insurerwhich makes it tougher for the private players to attract the corporate. The remaining 5 % are also notvery dissatisfied by the services but they are just open to new avenues and are looking forward thatprivate companies come with good offers so that they may shift to them. Thus private players will have tobe very proactive and in this regard since LIC is the leader and LIC Life Insurance Policy is lagging behindits competitors in terms of competition.
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Q5). What is peoples main concern while taking a insurance policy?
Concern of People Response Percentage
Security 10%
Savings 70%
Tax 20%
Interpretation-
This pie diagram shows that People Investing more in Business for the concern of Savings Mainly.
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Companies name Percentage of people
LIC 60%
ICICI 10%
BAJAJ ALLIANZ 5%
BHARTI-AXA 15%
SBI 8%
KOTAK MAHINDRA 2%
Q6). Where would you like to insure if given chance?
Interpretation-
Thus we see that the companies are comfortable in having business with govt. owned companies as they feelits safe & secure to have business with them which is followed by SBI as it is the biggest bank.
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Q7). LIC Life Insurance Policy Aspire Life satisfy your financial needs? (Please rate on the scale of 1 to10 with one being least satisfied)
CustomersResponse
(Ratings on scale 1-10)
I 26%
II 11%
III 21%
IV 5%
V 16%
VI 13%
VII 8%
Interpretation-
The response of customers show that they are average satisfied and some are also least satisfied after taking the
insurance policy.
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Q8). Opinion for the premiums paid for the various policies by the customers?
Satisfaction Levels Response Percentage
Very Low 9%
Low 10%
Moderate 11%
High 30%
Very High 40%
Interpretation-
40%people are very highly satisfied, 30% of people are highly satisfied,11% are moderate, 10% of people are lowsatisfied, 9% are very low satisfied.
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Q9) How you come to know about this policy?
Particulars Response Percentage
Advertisements 31%
Friends and Relatives 9%
Direct selling 26%(i) and (ii) 4%
(ii) and (iii) 14%
(iii) and (i) 10%
Interpretation-
This pie diagram shows that People know about this policy Mainly from 26% people Direct selling and 31% people fromadvertisement.
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Q10). Are there any incentives (tax benefits or Bonuses) associated with insurance policy
Particulars Response Percentage
Tax Benefits 60%
Bonuses 40%
Interpretation-
Responses show that customers prefer more of tax benefit rather than the bonuses while taking insurance policy. Thats whythe ratio of Tax benefit to Bonus is 3:2.
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Q11). Are you satisfied with the incentives associated with your policy?
Satisfaction Level of Customers Level of Satisfaction (in %)
Highly Satisfied 30%
Satisfied 40%
Moderate 15%
Unsatisfied 5%
Highly Unsatisfied 10%
Interpretation-
It shows that the customers are moreover satisfied with the incentives plans but to cater the needs of othercompany may have to look for other incentives.
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CONCLUSIONS
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On the basis of the study it has been seen that researcher gotthat most of the persons are aware of the benefits of life
insurance. Some people who had not life insurance they were
with positive thinking about life insurance & were planning to
have it.
Some people who has low income they were not interested in
life insurance but when I told them about differentdifferent plan
so they were quite interested in it. I hope they will definitely
change their mind & will be aware of benefits of life insurance.
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REFERENCES
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Books:
Life and Health InsuranceKenneth Black and Harold D.
Fundamental of Risk and Insurance- Emmet J Vaughan and John Willy.
PROJECT REPORT WRITING- Author: - M.K.Rampal & S.L. Gupta
RESEARCH METHODOLOGY METOHDS & TECHNIQUES- Author: -
C.R.Kothari
FINANCIAL SERVICES AND MARKETS- Author: - Dr. Gurusamy
Magazines
Mehra,Puja, India Today (27th MAY2006) PAGE 43
Sinha, Prabhakar, The Times Of India (16thMAY2006) PAGE 1
Brunch(16thjuly 2006)Websites
http://www.licindia.in/joint_life_001_features.htm
www.irdaindia.org
http://www.sebi.com
http://www.licindia.in/joint_life_001_features.htmhttp://www.irdaindia.org/http://www.sebi.com/http://www.sebi.com/http://www.irdaindia.org/http://www.licindia.in/joint_life_001_features.htm