GURU NANAK KHALSA COLLEGE OF ARTS, SCIENCE, AND

COMMERCE (AUTONOMOUS)
MATUNGA- 400019
A PROJECT ON
(STUDY OF INSURANCE PLAN OF LIC)

SUBMITTED BY
(YASH PRADEEP KHARAT)

M.COM (Advanced Accountancy) SEM-III

ROLL NUMBER: (16)

UNDER THE GUIDANCE OF

DR. SAYLI YADAV

IN THE PARTIAL FULFILLMENT OF THE DEGREE OF

MASTER OF COMMERCE

UNDER THE UNIVERSITY OF MUMBAI

(2022- 2023)

1
 DECLARATION

I, (YASH PRADEEP KHARAT) hereby, declare that the work embodied in this project work
titled “A STUDY OF INSURANCE PLAN OF LIC” forms my own contribution to the
research work carried under the guidance of Dr. Sayli Yadav is a result of my own research
work and has not been previously submitted to any other University for any other Degree/
Diploma to this or any other University.

Wherever reference has been made to previous work of others, it has been clearly indicated as
such and included in webliography.

I, here by further declare that all information of this document has been obtained and presented
in
accordance with academic rules and ethical conduct.

(YASH PRADEEP KHARAT)

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions in
the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.
I would like to thank my Principal Dr. H.S. Kalsi for providing necessary facilities required for
completion of this project.
I take this opportunity to thank our Vice Principal Dr. Anita Pasbola for the moral support and
guidance.
I would also like to express my sincere gratitude towards my project guide Dr. Sayli Yadav
whose guidance made the project successful.
Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my
project.

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 CERTIFCATE

This is to certify that (YASH PRADEEP KHARAT) of M.COM (Advanced Accountancy)

Semester III (2022-2023) has successfully completed the project on “(STUDY OF
INSURANCE PLAN OF LIC)” under the guidance of Dr. Sayli Yadav

Place: ___________
Date: ___________

_______________ _________________ _______________

Internal Examiner HOD & Vice-Principal External Examiner

_____________
Principal

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 INDEX
Chapter no Sub Chapter no Title and Contents Page no

1 Introduction 7-8

1.1 Meaning of Insurance 8

1.2 Classification of 9
Insurance
1.3 Life Insurance 9

1.4 History of life 10-12

insurance
1.5 Company profile 12

1.6 Structure of LIC 12

1.7 Financials 12

1.8 Types of Insurance 13-15

2 Review of literature 16-20

3 Research methodology 21-23

3.1 Introduction 21

3.2 Objectives of study 21

3.3 Scope of study 21-22

3.4 Limitations of study 23

3.5 Techniques used 23

4 Data analysis and 24-35

interpretation

5 Findings and 36-39

suggestions

6 Conclusions 40

7 References and 41-43

bibliography

8 Annexure 44-46

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 Figure Index
Figure no Contents Page no

1 Age 24

2 Gender 25

3 Occupation 26

4 Annual income 27

5 Life Insurance policy holder 28

6 Aware of insurance policy 29

7 Types of insurance covered 30

under

8 Amount of insurance covered 31

9 Monthly premium payment 32

10 Problem regarding 33

11 Trust insurance policy 34

12 Idea about LIC works 35

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 CHAPTER 1
INTRODUCTION
Uncertainty is the fundamental fact of life. This uncertainty leads to fear of risk in our life. Fear
of risk can be satisfied by taking all precautions to avoid risk. In spite of all precautions,
accident occurs.
So, Insurance is one of the best techniques to face this uncertainty. It is important to understand
that risk is the part of any person’s life. So, Life Insurance is a tool which safeguards an
individual’s life with benefits. There are many life insurance companies in India, but LIC plays
a major role in this field.
This is a complex mechanism and it is consequently difficult to define. However, in simple
terms, it has two fundamental characteristics i.e., transferring or shifting of risk from one
individual to a group and sharing losses on some equitable basis, by all members of the group.
From an individual point of view, Insurance is an economic device whereby the individual can,
substitute a small relatively definite cost (the premium) for a large uncertain financial loss (the
contingency insured against) that would have to be borne if insurance was not available. From
the point of view of the society, it is a mechanism which relieves the individual citizens and
the industry from the burden of carrying on themselves the various risks they are likely to face
from day to day operations.
“Man Proposes & God Disposes”
This statement is self-explanatory that man has no control on its life and results of its human
activities. It means that there is always uncertainty of the results of human activity. From the
moment of birth, till the end of life, all material possessions are also continually exposed to
uncertainty. So, we can say that-
“Uncertainty is the fundamental fact of life”
This uncertainty leads to fear of risk in our life. Fear of risk can be satisfied by taking all
precautions to avoid risk. In spite of all precautions, accident occurs. So, only these precautions
are not sufficient to avoid the consequences of uncertainty, but it requires more effective
technique to deal with the problem of risk in our society. We can deal with the risk in various
ways but insurance is one of the best techniques to deal with the risk.
Government supported insurance schemes are a form of social security in India. These
schemes are initiated by the Government to provide protection to certain sections of population
against income losses and can be categorized as social security as per the definition of the
International Labour Organization (ILO 1984).† The need for public support for these schemes
arises from the fact that moral hazard and adverse selection problems associated with insurance
markets often make it difficult for certain sections of the population to access private insurance
markets. Risk adjusted premium rates are often unaffordable for the weaker sections of the
population and the Government needs to step in to provide financial support in the form of
premium contribution towards these schemes to facilitate the provisioning of insurance for
these sections of the population. In India, a number of Government supported insurance
schemes have been initiated over the last decade. A number of schemes that existed earlier
have also been modified substantially. While some of these changes have taken place at the
State level, the most important changes, in particular some of the largest insurance schemes in
terms of implementation across the country have been initiated by the Central government.

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This report focuses on the insurance schemes being implemented by the Central Government
for the vulnerable sections of the society. It provides an overview of the nature of schemes and
their basic features, analysis aspects of their performance and the factors affecting them,
highlights expenditure commitment of Government of India on these schemes and discusses
issues related to the design and implementation of these schemes. Further, the report also
provides some insight into the extent of overlapping between Central and State schemes and the
possibility of implementing some of the Central schemes through a common implementing agency.

1.1 Meaning of Insurance

The literal meaning of insurance would be an assurance against unforeseen and unfortunate
loss. This means, that if you encounter a less than normal event in your normal course of life,
and happen to incur a financial loss because of it, you can be compensated.

Insurance is a cover used or protecting oneself from the risk of a financial loss. It is important
to understand that risk is a part of any person’s life and that it increases as a person increases
in age, responsibility and wealth. Insurance is risk coverage against financial losses and should
not be taken as an investment instrument.
There are mainly two parties involved in this- the insurer and the insured. The insurer is the
insurance company who will provide the cover to the insured against any financial losses. The
insured may be an individual person or a group of people like an employer, members of a
society, etc.
Insurance is a way to manage your risk. When you buy insurance, you purchase protection
against unexpected financial losses. The insurance company pays you or someone you choose
if something bad happens to you.

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 1.2 Classification of Insurance
1. Life Insurance
2. Non-Life Insurance- Property Insurance, Casualty Insurance, Health Insurance etc.

1.3 Life Insurance

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

Among other things, the contract also provides for the payment of premium periodically to the
corporation by the policyholder. Life Insurance is universally acknowledged to be an
institution, which eliminates ‘risk’, substituting certainty for uncertainty and comes to the
timely aid of the family in the unfortunate event of death of the breadwinner.

By and large, life insurance is civilization’s partial solution to the problems caused by death.
Life insurance, in short, is concerned with two hazards that stand across the life-path of every
person:

1. That of dying prematurely leaves a dependent family to fend for itself.

2. That of living till old age without visible means of support.

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 1.4 HISTORY OF LIFE INSURANCE
The story of insurance is probably as old as the story of the mankind. The same instinct that
prompts modern businessman today to secure themselves against loss and disaster existed in
primitive men also. They too sought to avert the evil consequences of fire and flood and loss
of life and were willing to make some sort of sacrifice in order to achieve security. Though the
concept of insurance is largely a development of the recent past, particularly after the industrial
era-past few centuries-yet its beginnings date back almost 6000 years.
Life Insurance in its modern form came to India from England in the year 1818.Oriental Life
Insurance Company started by Europeans in Calcutta was the first Life Insurance Company on
Indian soil.

All the insurance companies established during that period were brought up with the purpose
of looking after the needs of European community and Indian natives were not being insured
by these companies. However, later with the efforts of eminent people like Babu Muttylal Seal,
the foreign life insurance companies started insuring Indian lives. But Indian lives were being
treated as sub standard lives and heavy extra premiums were being charged on them.

Bombay Mutual Life Assurance Society heralded the birth of first Indian life insurance
companies in the year 1870, and covered Indian lives at normal rates. Starting as Indian
Enterprise with highly patriotic motives, insurance companies came into existence to carry the
message of insurance and social security through insurance to various sectors of society.

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Bharat Insurance Capital Company (1896) was also one of such companies inspired by
nationalism. The Swadeshi Movement of 1905-1907 gave rise to more insurance companies.
The United India in Madras, National Indian and National Insurance in Calcutta and the Co-
Operative Insurance Company took its birth 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. Prior to 1912; India had no legislation to regulate insurance business. In the year 1912,
the Life Insurance Companies Act 1912 made it necessary that the premium rate tables and
periodical valuations of companies should be certified by an actuary. But the Act discriminated
between foreign and Indian companies on many accounts, putting the Indian Companies at a
disadvantage.
The first two decades of the 20th Century saw lot of growth in insurance in business. From 44
companies with total business-in-force as Rs.22.44 crores it rose to 176 companies with total
business-in-force as Rs. 298 crores in 1938. During the mushrooming of insurance companies
many financially unsound corner were also floated which failed miserably. The insurance Act
1938 was the first legislation governing not only life insurance but also non-life insurance to
provide strict state control over insurance business.

Growth of Indian Insurance Companies from last some decades.

The demand for nationalization of life insurance industry was made repeatedly in the past but
it gathered momentum 1944 when a bill to amend the Life Insurance Act 1938 was introduced
in the legislative assembly. However , it was much later on the 19th of January , 1956, that life
insurance in India was nationalized .About 154 Indian insurance companies, 16 non-Indian

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companies and 75 provident were operating in India at the time of nationalization.
Nationalization was accomplished in two stages; initially the management of the companies
was taken over by means of an Ordinance, and later, the ownership too by means of a
comprehensive bill. The Parliament of India passed the Life Insurance Corporation of India
was created on 1September, 1956, with the objective of spreading life insurance much more
widely and in particular to the rural areas with a view to reach all insurable persons in the
country, providing them adequate financial cover at a reasonable co

1.5 Company profile

The Life Insurance Corporation of India was established on 1 September 1956, when the
Parliament of India passed the Life Insurance of India Act, nationalizing the insurance industry
in India. Over 245 insurance companies and provident societies were merged together.
LIC reported 290 million policyholders as of 2019, a total life fund of ₹28.3 trillion and a total
value of sold policies in the year 2018–19 of ₹21.4 million. The company also reported to have
settled 26 million claims in 2018–19. It ranked 98th on the 2022 Fortune Global 500 list with a
revenue of ₹775,283 crore (US$97 billion) and a profit of ₹4,415 crore (US$550 million)
Life Insurance Corporation of India (LIC) is an Indian central public sector undertaking
headquartered in Mumbai, Maharashtra, India. It is under the ownership of Ministry of Finance,
Government of India.

1.6 Structure of LIC

The Central Office of LIC is based out of Mumbai. There are a total of 8 zonal offices, located
in Delhi, Chennai, Mumbai, Hyderabad, Kanpur, Kolkata, Bhopal and Patna.
Liberalisation post 2000s
In August 2000, the Indian Government embarked on a program to liberalise the insurance
sector and opened it up to the private sector. The LIC benefited from this process and in 2013
reported 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.

1.7 Financials
Year Revenue (In crores). Profits/Loss (In crores) Total Assets (In crores)
FY 2019 Increase 571,508 Increase 2,627. Increase 3,427,249
FY 2020 Increase 628,043 Increase 2,710 Increase 3,499,834
FY 2021 Increase 693,904 Increase 2,974 Increase 3,829,524

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 1.8 Types of insurance
Term Life Insurance or Term Plan
Term life insurance is the most popular type of life insurance. It is widely considered to be the
simplest and purest form of life insurance. It offers a death benefit to the beneficiaries of the
policy if the policyholder passes away during the policy term.
Term insurance is the most affordable types of life insurance. The most distinctive feature of
this plan is the high amount of coverage offered at extremely nominal premium rates. It is thus
cheaper than other types of life insurance policies.
In general, term life insurance does not offer maturity benefits. But certain types of term plans
also offer maturity benefits, i.e., term plan with return of premiums (TROP) if the policyholder
outlives the policy term. One can also increase the amount of coverage offered by a term plan
by opting for additional riders, such as Accidental Death Benefit or Child Support riders.

Whole Life Insurance Plan

Whole life insurance is a type of life insurance that offers coverage right until the death of the
policyholder. In this policy, you can opt for either a participating or non-participating policy,
as per your financial needs and risk appetite. Though the premiums for participating whole life
insurance are higher in comparison, dividends are paid out at regular intervals to the
policyholders. The premium rates for a non-participating policy are lower, but the policyholder
generally cannot avail the benefits of regular dividends.

Unit Linked Insurance Plan (ULIP)

Unit Linked Insurance Plan or ULIP is a type of life insurance product that offers dual benefits
of investment and life insurance. Among the different types of life insurance policies available,
ULIPs enjoy a high amount of popularity owing to their versatile nature. A portion of the
premiums paid is directed towards ensuring insurance coverage, while the rest of the premium
is invested into a bouquet of investment instruments, which can include market-backed equity
funds, debt funds and other securities.
ULIPs are extremely flexible instruments since investors can easily switch or redirect their
premiums between the different funds available. They are also touted as having an edge over
other market instruments in terms of tax-saving benefits, since their proceeds are exempted
from LTCG (Long Term Capital Gains).

Endowment Policy
Endowment Policy is a type of life insurance policy which acts as, both, an instrument for
insurance and saving. These plans aim to provide maturity benefits to the life insured, in the
form of a lump sum payment at the end of the policy tenure, even if a claim hasn’t been made.
It is the most suitable types of life insurance for people looking to get maximum coverage
alongside having a sizable savings component. They help the policyholder inculcate the habit

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of savings, even while providing financial security to their family. Endowment plans can
broadly be classified into two types: with profit and without profit. Policyholders can choose
from these two types based on their risk appetite.

Money Back Policy

Being one of the best types of life insurance policies, a money-back policy offers policyholders
a percentage of the total sum assured at periodic intervals in the form of Survival Benefits.
Once the policy reaches maturity, the remaining amount of the Sum Assured is handed over to
the policyholder. However, if the policyholder dies while the term is ongoing, their dependents
are given the entire Sum Assured without any deductions.

Retirement Plan
A retirement plan is a type of life insurance that focuses on providing you financial stability
and security post your retirement. After you retire, you lose your regular income from
employment. Investing in retirement plans can help you create a stable regular income stream.
If you continue to invest until retirement, the plan will help you take care of your expenses
after retirement. It requires you to invest a certain part of your income regularly during your
working life. At the time you retire, the amount that you create over the years will be converted
into a regular income stream. Retirement plans also involve death benefits. Thus, if the
policyholder passes away during the course of the policy, their beneficiaries will be provided
with an assured sum.

Child Insurance
A child insurance plan is a savings cum investment plan that provides financial protection for
the child’s future upon the unfortunate demise of the policyholder. It is ideal for ensuring the
future needs of the child are well taken care of, even in the absence of the life insured. Parents
can invest in the best child insurance plans, in order to meet the financial requirements for their
child’s education, marriage or to fulfil a multitude of other financial goals their child might
have.

Group Insurance Plan

A group life insurance policy is a type of life insurance that covers a group of people inside a
single insurance policy. Unlike individual life insurance policies, which cover one person for
a period, group insurance covers a minimum of 10 members.
Employers, banks, corporates, and other homogeneous groups of persons can buy group Life
Insurance policies for their employees and customers. While employers would want to offer
financial protection to their employees’ families banks and lending institutions aim to keep the
debt off the borrowers’ family after their death.
The plan under which the group is covered is called the Master Plan.

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The policy is issued to the manager of the group (master) but will remain in the name of the
group only.
For example, Ram is the manager of a firm, to protect his employees, he has taken a group
insurance policy. Now the policy will be issued to Ram in the name of the firm.
One of the distinct features of these life insurance policies is that you get insurance till the time
you are part of the group. If you leave the group, your cover ceases to exist.

Savings and Investment Plan

Savings and investment plans from life insurance are the plans which channel your regular
savings into long-term investment goals. iSelect Guaranteed Future is a life insurance cum
savings plan that offers a life cover along with guaranteed maturity benefits. With this, you can
plan your investments so that you can achieve your life goals smoothly. You can also protect
your financial goal with a premium protection option. This option allows the planned
investments to continue even after your demise.

Board of directors
1 Shri. Mangalam Ramasubramanian Kumar Chairperson
2 Shri. Suchindra Mishra Government Nominee Director
3 Shri. Raj Kumar Managing Director
4 Shri. Siddhartha Mohanty Managing Director
5 Smt. Ipe Mini Managing Director
6 Shri. Bishnu Charan Patnaik Managing Director
7 Shri. Dr. Ranjan Sharma Independent Director
8 Shri. Vinod Kumar Verma Independent Director
9 Prof. Anil Kumar Independent Director
10 Smt. Anjuly Chib Duggal Independent Director
11 Shri. Gurumoorthy Mahalingam Independent Director
12 Shri. Raj Kamal Independent Director
13 Shri. Vankipuram Srinivasa Parthasarathy Independent Director
14 Shri. Vijay Kumar Muthu Raju Paravasa Raju Independent Director
15 Shri. Sanjeev Nautiyal Independent Director

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 CHAPTER 2
REVIEW OF LITERATURE
Rajni M. Shah (2007), Paper Presented at the C.D. Deshmukh Seminar on “Creating
Consumer Awareness in Life Insurance” has analysed as how to harness huge untapped market
potential For life insurance to the benefit of vast rural and semi urban populace. The paper has
quoted the Famous line – “customer is business, business is people, people are customers” in
context of Consumer awareness. The paper emphasises that Consumer awareness will provide
a new Frame of reference for value creation as also an opportunity for innovation and also have
Emphasised on campaigns to educate rural and semi urban masses on the need for security that
Protects their livelihood, security for produce and belongings and create feel-good feeling. In
Summary it states that a new phenomenon will emerge where Market dynamics will rule and
Unfold a stage through a process of evolution by co-creating unique value with customers will
Merge as expounded by Prof. C.K. Prahalad in his later path-breaking Title “ The Future of
Competition : Co-creating Unique Value with Customers”

Tamzid Ahmed Chowdhury and Masud Ibn Rahman (2007), in the article, “Problems and
Strategies in Service Marketing: Bangladesh Perspective”, present conceptual framework of
The problems and strategies in services marketing that derive from five unique characteristics
of Services. The framework is based on a review of the growing body of literature in services
Marketing. The article also reports the findings from a survey of service firms concerning
Problems they face and strategies they use. A combination of theoretical aspects and survey
Results in one article affords the opportunity to make a bridge between the empirical practices
And theoretical aspects.

Subir Sen (2008), in his article “An Analysis of Life Insurance Demand Determinants for
Selected Asian Economies and India” has tried to understand economic and other socio-
political Variables, which may play a significant role in explaining the life insurance
consumption pattern In Greater China Region and six ASEAN countries for the 11- year period
1994-2004 and also Tried to re-assess whether or not the variables best explaining life
insurance consumption Pattern for twelve selected Asian economies in the panel are significant
for India for the period 1965 to 2004. This research has highlighted that in India the economic
variables such as Income, savings, prices of insurance product, inflation and interest rates &
demographic Variables like dependency ratio, life expectancy at birth, crude death rate and
urbanization are Few significant determinants which effect the insurance consumption.

Manjit Singh and Rohit Kumar (2008), in the paper, “Indian Insurance Industry Outlook in
the Post Reform period”, highlight that insurance penetration and density has witnessed an
Increasing trend in the post- reform period, but has a long way to go to even come close to the

16
Developed nations. The study also indicates huge unexplored and untapped market in India
and Shows huge opportunities for insurance companies to capture the business from
competitive Market; the survival of companies will depend on their strategies and efforts to
increase their Penetration levels and tap the new business positions especially in rural India

Nagaraja Rao, K. (2010), in his article “Challenges in Designing Need Based Products in Life
Insurance for Inclusive Growth in India”, analyses the challenges faced by the insurers in
Designing need-based products in insurance for inclusive growth, and concludes that the
Policies of life insurance companies are still not rural-centric, catering to the specific needs of
The people. With a view to popularizing life insurance, he recommends that the consumers
need To study the rural market, analyse the specific needs of each segment and design
innovative Products, to suit the requests of the people to the objective of inclusive growth.

Sonika Chaudhary, Priti Kiran (2011), in their paper “Life Insurance Industry in India –
Current Scenario” discussed that life insurance in India’s trend from the year 2005-06 to 2010-
2011. During the study period this sector moved upwards from the factors like number of
Offices, number of agents, new business policies, premium income etc. Further, many new
Products like ULIPs, pension plans etc. and riders were provided by the life insurers to suit the
Requirements of various customers. However, the new business of such companies was more
Skewed in favour of selected states and union territories. This paper concludes that Private life
Insurers used the new business channels of marketing to a great extent when compared with
LIC

Upadhyaya and Badlani (2011), in their research, attempt to identify the key success factors
in The life insurance industry, in terms of customer satisfaction so as to survive intense
Competition and to increase the market share. The objectives of the study are to identify the
Factors of customer satisfaction in retail life Insurance in India and to study the importance of
Technology in fulfilling Customer Satisfaction. Data was collected from 206 insurance
customers Of the ten public and private sector life insurance companies from the major cities
of Rajasthan And Maharashtra state in India. The study concludes that despite high satisfaction
levels, there Remains a lot to be done by the management of the retail life Insurance companies
to maximise Their customer satisfaction and improve the quality of service. The satisfaction of
the customer With the services of the Life Insurance Companies was found to be linked with
the performance Of the service

Harpreet Singh & Preeti Singh(2011), in their research, “An Empirical Analysis Of
Insurance Industry In India” have analysed the overall performance of Life Insurance Industry
of India Between pre- and post economic reform era and also measure the current status,
volume of Competitions , challenges faced by the Life Insurance Corporation of India and
lastly to measure The effectiveness of investment strategy of LIC over the period 1980 to
2009.They have Highlighted the role of LIC as a primary player in life insurance and how there
is growth in Performance of Indian Life Insurance industry and LIC due to the policy of LPG.

17
They have Summarised that Total investment of LIC rose from Rs 4587.7 crores in 1979 to Rs.
762891.7 Crores in 2009. Proportion of premium collected by LIC out of total premium
collected by life Insurance industry is declined from 97% in 2001-02 to 74% in 2007-08. It
indicates the Increasing competition from private sector. ICICI prudential is becoming a
stronger and Stronger player by taking over a lot of business of LIC due to aggressive and
flexible product Range. But still there is a lot of scope of development in the life insurance
industry where private
Syed Ibrahim (2012), in his research “Consumers’ Grievance Redressal System in the Indian
Life Insurance Industry – An Analysis” attempts to review on consumer protection and the
Awareness with reference to the grievances settlement operations of the Life Insurance
Industry In India. The study was based on relevant secondary data which was been collected
mainly Through the data bases of Insurance Regulatory Development Authority of India
(IRDA), Reserve Bank of India (RBI), various reports and other studies for a period of 5 years.
The research Based on various statistical analyses revealed that LIC has succeeded in resolving
consumer’s Grievances when compared to the private insurers but even private players were
active in Resolving the grievances only in performance year ends .The paper also highlight that
IRDA has Recently established the Consumer Affairs Department to give a special focus to
and oversee the Compliance by insurers of the IRDA Regulations for Protection of
Policyholders’ Interests and Also to empower consumers by educating them regarding details
of the procedures and Mechanisms that are available for grievance Redressal.

Sumathi Kumaraswamy (2012), in her research, “Swot Analysis for Ban assurance:
Application Of Confirmatory Factor Analysis: Review Of Research” has stated that Bank
places Highest priority on customer service and satisfaction has a competitive edge over its
Competitors. But Customer satisfaction is an important strategy for banks in insurance selling
as The bank refers their customers to the insurance company. In her research she has examined
the Prospects of ban assurance based on the respondents’ perception towards the strengths,
Weaknesses, opportunities and threat factors pertaining to the ban assurance venture. This
Research has concluded that The ban assurance venture will benefits the customer in terms of
Better service quality, advice on financial planning, diversification, quality products, doorstep
Service, credibility, transparency dealing, ease of renewals, electronic banking. Customer will
Also derive satisfaction of the brand strength of the bank, his relationship and trust on the bank.
Finally the products sold through ban assurance can give better value and offer lesser Premiums
for customers due to lower distribution costs.

Vijay Kumar (2012), in his PhD thesis, “A Contemporary Study of Factors Influencing Urban
And Rural Consumers for Buying Different Life Insurance Policies in Haryana”, makes an in
depth study of the factors influencing buyer behaviour for buying life insurance policies in
Haryana. The survey was conducted in Haryana on 1000 policyholders. The study outlines that
The insurance agent was the most influential factor for selecting the life insurance policy
among Rural and urban policyholders. The other crucial determinants of buying behaviour
were also Identified such as income, economic status, product attributes, agent attributes, and
price. The Result indicates that there was a significant difference in the buying behaviours of
rural and Urban policyholders.

18
Yogesh Jain (2013), in his article, “ Economic Reforms and World Economic Crisis: Changing
Indian Life Insurance market place” reviews on life insurance scenario in India, the challenges
of The sector and the issues .The author has revealed that Since opening up of Indian insurance
Sector for private participation, India has reported increase in insurance density for every
Subsequent year and for the first time reported a fall in the year 2011,but when we compare
Real growth of premium with world insurance market Indian Life market declining very
sharply During last financial year except year 2009-10.Then the author has discussed few
imperatives Like life insurers should conduct more extensive market research before
introducing insurance Products, Life insurers should streamline their grievance Redressal
machinery for efficient and Effective service& In present stiff market competition, a focus on
niche segment can be an Effective way of marketing for insurers to differentiate from the
competitors etc.

Sonal Nena (2013), in her study-“Performance Evaluation of Life Insurance Corporation (LIC)
of India” has tried to analyse growth and performance of LIC. She analysed the major Source
of income (Premium Earned) of the LIC, as well as the significant heads of expenses of LIC to
measure the performance .This study has proved that LIC has been success in terms of Creating
value for its policyholders. The performance evaluation also showed consistent Increase in its
business. During the study period there was no major change in the performance Of the LIC.
So it was finally concluded that performance remained unchanged and LIC has Maintained the
market value of their products.

Vijay Maruti Kumbhar (2013), in his article A Study of FDI in Life Insurance Sector in India
has Tried to evaluate the concept of foreign direct investment and its role in life insurance
sector in India. The Insurance sector was opened up for private sector in 2000 after the
enactment of the Insurance Regulatory and Development Authority Act, 1999 (IRDA Act,
1999) ,this Act Permitted foreign shareholding in insurance companies to the extent of 26 per
cent with an aim To provide better insurance coverage and to augment the flow of long-term
resources for Financing infrastructure (Yashwant Sinha, 2013).The paper reveals that out of 24
insurance Companies including LIC overall FDI is 25.47 percent in 2012 & Rs. 6324.27 of
equity capital is Invested by the foreign investors in 22 life insurance companies in India out
of 23 private Insurance companies except SAHARA Insurance and Rs. 18507.65 invested by
Indian Promoters. The paper concludes that on the bases of statistics received from the IRDA
indicates That there is better growth trend in FDI in life insurance sector in India.

India Monika, Halan Renuka & Sane Susan Thomas (2013), in their research article on
“Estimating losses to customers on account of mis-selling life insurance policies in India” have
Tried to determine the loss to investors from mis-selling of insurance products. The approaches
Used was analysing the number of lapsed policies from the annual reports of the insurance
Regulator, IRDA &the second method used the persistence of premium payments that are

19
Reported in the annual reports of individual insurance companies. The research has found out
That the estimated loss was Rs.1.5 trillion, or $28 billion, to investors owing to mis-selling
over The 2004-05 to 2011-12 periods. The authors concluded that there will be adverse
economic Consequence for consumers if financial law and regulation does not focus upon
consumer Protection, the existing policy environment has swung from a lack of focus on the
consumer Interests where actually these interests are the foundation of policy recommendations
and Regulatory changes .

Dr Sunayna Khurana (2013), in her article, “Analysis of Service Quality Gap in Indian Life
Insurance Industry” says that Life insurance companies in India offer similar kinds of plans
and Services, but they could provide differences in terms of service quality .In this context this
Research tried to find out the gap between Customer expectation & customer perception in the
Life insurance industry by examining a Sample of 200 customers of 10 top performing Life
Insurance companies in Haryana state. The study found that there is highest gap in customer
Expectations and perceptions towards the competency dimension of service quality. That
means Customers are expecting high service quality and perceiving very less quality in case of
services Related to competency dimensions.

Simona Laura Dragos (2014), in the research article, “Life and non-life insurance demand:
the Different effects of influence factors in emerging countries from Europe and Asia”,
Economic Research. Many previous researches have shown that Urbanisation, incomes and
their Distributions, and the population degree of education are relevant factors for the
development Of insurance sector in any nation. This present paper tried to test the above said
variables using Econometrics of panel data on 17 emerging economies from Asia and Europe
over a 10-year Period from 2001 -11.This research brought out findings that urbanisation
influenced Significantly the life insurance demand in Asia countries so it pointed out that the
main Insurance opportunity will be in emerging Asia (especially China and India), where the
Urbanisation rate is lower than it is in Central and Eastern Europe. It also highlighted that
Tertiary education as a proxy for risk aversion is not appropriate for the life insurance sector
Because of the complexity of wealth accumulation and distribution of wealth products so a
Reliable solution for this could be the high level of financial literacy.

20
 CHAPTER 3
RESEARCH METHODOLOGY

3.1 INTRODUCTION
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by a researcher in studying his research problem along
with the logic behind them.

3.2 OBJECTIVE OF STUDY

• Spread Life Insurance widely and in particular to the rural areas and to the socially and
economically backward classes.
• Maximize mobilization of people's savings by making insurance-linked savings
adequately attractive.
• 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.

3.3 SCOPE OF STUDY

The main aim of a life insurance cover is to secure the needs of dependents after one’s untimely
death. In addition to the emotional suffering, the financial insecurity arising out of losing the
primary earner can be immense. This is the reason why most personal finance experts suggest
that life insurance should be the main part of one’s investment planning. In India, life insurance
is yet to reach its full potential as the awareness about life insurance products is pretty low.
While the Indian life insurance industry has witnessed a lot of transformation ever since the
entry of private players, it still has a long way to go in terms of protecting the entire population
of our country.

How life insurance works

Life insurance is basically a contract between two parties an insurance company and an
individual wherein the company guarantees the payment of compensation to the insured’s
dependents in case of his/her untimely death within the predetermined policy term. There are
different types of life insurance products available in the market. All life insurance covers pay
a lump sum death benefit following the unexpected death of the policyholder within the policy

21
term. Savings/investment-oriented life insurance policies may also accumulate additional
bonuses during the course of the policy term.
Life insurance industry in India
The Indian life insurance industry witnessed a major transformation in the year 2000 due to the
entry of various private players. As of now, there are 24 companies competing with each other
in the life insurance industry. This intense competition has created an opportunity by providing
a lot of choices for customers. Though there are a lot of takers for life insurance in India, the
country’s overall insurance penetration is just 2.72% according to the Economic Survey 2018.
The potential to grow is extremely high in the Indian life insurance market. This is the main
reason why the industry continues to attract new entrants. Most importantly, this change has
led to the adoption of various regulatory changes and consumer-centric practices in the life
insurance industry.
How life insurance can protect your family
Most of the nuclear families in India have only one primary earner. The unexpected loss of the
primary earner can have devastating consequences on a family’s financial security. Undergoing
a major financial crunch along with the emotional burden can result in major trauma for the
family. Life insurance aims to avoid this situation by protecting the life of the insured person
against unexpected eventualities. The family of the insured person can manage their future
expenses with the lump sum payment received from the company. Hence, life insurance can
safeguard a family from a critical situation associated with the loss of a primary earner.

Benefits of life insurance

Death and maturity benefits are the most obvious benefits of life insurance covers. However,
there are many other benefits offered by life insurance policies apart from these two. The
overall benefits offered by life insurance covers are listed as follows:
Death benefit: This refers to the lump sum payment received by the family of the insured
person. The death benefit is typically the sum assured amount chosen by the policyholder at
the time of signing up for the policy.
Maturity benefit: This refers to the payment received by the policyholder if he/she outlives
the chosen policy term. There are no maturity benefits in term covers. However, other covers
like endowment plans, ULIPs, retirement plans, etc., offer maturity benefits for policyholders.
Maturity benefits typically have bonus payments provided by the company.
Loan facility: This is not applicable to term insurance covers. Other investment-oriented plans
provide loan facility up to the extent of the surrender benefit of the policy. Individuals can
choose the repay the loan amount or use their accumulated policy benefits to pay off the loan.
Tax benefit: The premium amount paid for a life insurance policy is exempt from income tax
as per Section 80C of Income Tax Act. This tax benefit is an added advantage available for life
insurance buyers.

22
 3.4 LIMITATIONS TO STUDY
1. Sample size is small because of the time constraint.
2. Respondent may be hesitant to provide their details.
3.Time for study is limited.

3.5 TECHNIQUES AND TOOLS USED

Primary Data:
To collect information for our research project we’ve created a questionnaire
through Google form and sent it to various people. We got a good amount of
response which helped us in our research. The respondents where form Dadar
area .
Secondary Data:
This data consists of information collected from various websites, magazines,
journal, text book. The data that was preferable for this study and with all the
research done.

23
 CHAPTER 4
DATA ANALYSIS AND INTERPRETATION

Q 1. Age?

Fig no 1
Age Total respondents Percentage
18-30 28 73.68
31-40 7 18.42
41-50 1 2.63
51-60 1 2.63
60+ 1 2.63
Total 38 100

Interpretation – From the above data we can analyse that there are more respondents form the
age group of 18 to 30 as the insurance premiums are low during that age . And youngsters are
more like to get insured early.

24
Q 2. Gender?

Fig no 2
Gender Total respondents Percentage
Male 22 55.3
Female 16 44.7
Total 38 100

Interpretation - From the above date we can conclude that there are more male responses than
females in our insurance plan survey. This get us to the conclusion that males are more likely
towards getting insurance.

25
Q 3. Occupation?

Fig no 3
Occupation Total respondents Percentage
Service 23 60.5
Business 1 2.7
Students 10 28.9
Freelancer 4 7.9
Total 38 100

Interpretation - From the above pie chart we can analyse that service oriented people are
towards insurance investment, followed by students 28.9% and freelancers 7.9%.

26
Q 4. Annual income?

Fig no 4

Annual income Total respondents Percentage

Below ₹2,50,000 22 57.9
₹2,50,000 to ₹3,50,000 5 13.2
₹3,50,000 to ₹4,50,000 4 10.5
₹4,50,000 to ₹5,50,000 1 2.6
Above ₹5,50,000 6 15.8
Total 38 100

Interpretation - From the above data analysis say that people who’s income is below ₹2,50,000
are greater than any other people of different income levels.

27
Q 5. Are you a life insurance policy holder?

Fig no 5
Insurance holder Total respondents Percentage
Yes 20 52.6
No 18 47.4
Total 38 100

Interpretation – The pie chart we came to the analysis that there are 52.6% people covered
under life insurance policy which is a great percentage. But there are still some percentage of
people 47.4% who are not covered or they are not able to choose their perfectly suited life
insurance according to their requirements.

28
Q 6. Are you aware of insurance policy?

Fig no 6
Aware about insurance Total respondents Percentage
Yes 31 81.6
No 7 18.4
Total 38 100

Interpretation – From the above data we conclude that there are many people who are aware
about the insurance available to them according to their requirements but still 18.4% people
are not aware about how important insurance is form them and their families. It is our work to
make them aware about insurance benefits.

29
Q 7. What type of insurance are you covered under?

Fig no 7
Insurance you covered Total respondents Percentage
under

Life health insurance 10 26.31

Term insurance 6 15.78
Money back 3 7.89
Not covered 11 28.94
Others 8 21.05
Total 38 100

Interpretation - From the data we can analyse that there any many people(28.94%) who are
still not covered under any type of insurance. Some people are covered under life health
insurance and some under term insurance etc .

30
Q 8.Amount of insurance you are covered under?

Fig no 8

Amount of insurance Total respondents Percentage

covered under
1 lakh 16 42.1
1lakh to 50 lakh 15 39.5
50 lakh to 1 crore 6 15.8
1 crore above 1 2.6
Total 38 100

Interpretation – Form the above data we have found that most people are covered under
insurance of 1 lakh followed by 1 lakh to 50 lakhs .

31
Q 9. How much premium do you pay each monthly?

Fig no 9
Premium monthly Total respondents Percentage
500 21 52.6
5,000 12 34.2
10,000 3 7.9
Or more 2 5.3
Total 38 100

Interpretation – Form the data we came to know that there are more monthly premium of ₹500
and then of ₹5000 form the people.

32
Q 10. Do you have any problem regarding your insurance policy?

Fig no 10

Problem in insurance Total respondents Percentage

policy
Yes 4 10.5
No 34 89.5
Total 38 100

Interpretation – From the above data there are many people who don’t have any problems
regarding their insurance policy which I a good indication to the company as they are meeting
consumer need but some are still facing problem which can be solved.

33
Q 11. How much do you trust your insurance policy regarding any incident?

Fig no 11

Trust on insurance Total respondents Percentage

Fully 16 44.7
Partly 21 52.6
Zero 1 2.7
Total 38 100

Interpretation – From the data we came to understand that mostly people have partly trust on
their insurance policies regarding any type of incidents they go through.

34
Q 12. Do you have any idea about ‘How LIC works’?

Fig no 12
Idea about how LIC work Total respondents Percentage
Yes 10 26.3
No 28 73.7
Total 38 100

Interpretation – From the data we got there are total 73.7% people how don’t even know how
their insurance company work how the generate income from their premiums. This is showing
that people are not gaining any knowledge about their insurance company as well as their
insurance policies. The are just investing for returns and emergency.

35
 Chapter 5
FINDINGS ANDSUGGESTION
The findings that can be drawn from the survey conducted by us can be summarized in the way
Bank Deposits are the most preferred investment alternative which is available to people
followed by alternatives such as Insurance, Real Estate, Gold and Silver, Mutual etc. The
scheme mostly preferred by insurance holders was life protection schemes like death benefits
followed by money growth plans like wealth creation and high return plans. It was found that
nearly 50% of the respondents usually save less than 15% and the kind of investment mostly
preferred by the respondents were both long and short term. According to the survey safety is
the most important criterion which is excepted among all the respondents towards their
investment alternatives followed by Return, Brand Name, Tax Benefits, Liquidity and
CapitalGrowth.According to the study company image is to be the highly important criteria,
which we consider before taking up a life insurance this is mainly because people expect safety
and security for their money which they invest, followed by the factor Premium which we pay
to the insurer and then Bonus and Interest paid by the company, services etc. It is clear that the
majority i.e. more than half of investor’s investing in insurance are the young people in the age
group of 20-40. It can be said that males dominate in having life insurance policies. The
majority of people having life insurance are employed. The most preferred plan among the
investor’s is unit linked plans because of its high returns. Almost80%of the policies sold have
the periodicity of 5-25 years. It is very much clear that the awareness level of the customers of
LIC is much higher. A greater number of customers of LIC are either fully or partially satisfied
but there is not much significant difference across sectors in terms of service quality
satisfaction level. Employees or agents of LIC are easily accessible and customers were happy
with the ethics, knowledge provided by them and helpful gestures they offer them as when
required. Most of the respondents of LIC feel that formalities for opening a policy are not
complex and do not take much time to start with and Two fifth of the customers of LIC are
fully satisfied with its grievance redress mechanism. It is a opportunity for LIC that more than
four fifth of the customers of LIC feel that there is no delay in claim settlement also a large
number of customers of LIC feel that their agent provides them with the correct and relevant
information and it is evident that individual risk coverage is the most preferred criteria among
the investors sectors, Hence the rationale behind investment is more or less same. Last it was
clearly amandate given to LIC that 88% of the respondents have got positive perception
towards LIC and if they again go for the new policy, they will stuck to LIC of India only as
after investing with them they feel that their money is safe, secure and they don’t have to run
here and there for theclaim settlements is the giant of the insurance sector. The overall size of
LIC is much more than that of all private insurance companies. Private insurers are in expansion
mode and are increasing their size but are still much behind LIC. Total premium deposits in
LIC is much higher than the private insurance companies. Total premium of LIC in FY 11-12
was 209789 crores which three times more than that of private insurance companies. Income
of LIC is much greater than private insurance companies. Last year total income from
investments of LIC was 48244.14 crores which was nearly equal to the total income of the all
private insurance companies. By this we canimagine how big the LIC is. If we see the total
number of policies issued by LIC and private insurance companies, we find that there is a huge
gap between them. No doubt that LIC is a well established player in the field of insurance and
many private companies have just started their business. Hence it is obvious that LIC is having

36
large number of policyholders. Number of branches of private insurance companies is
increasing as the new players are entering in this market. Also the established players are in
expansion phase and hence are expanding their business. There are many private insurance
companies and hence there total number of branches has gone past LIC in the last financial
year. But offices of private insurance companies are mostly in urban areas and still it is LIC
which covers most of the area. Hence we see that LIC is leading when it comes to size. It is
giant in insurance sector having huge network and customer base. 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 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 ios 78%.LIC is much ahead of private insurance companies in this
field. They are undoubted champions in insurance when it comes to profit earning. New
business is increasingly going towards private insurance companies but still the customer base
of LIC is very strong. In issuing new policies per branch also, they are ahead of private
insurance companies though not by very large margin. Customer base of LIC is very strong
and still business per branch, profit per branch or premium per branch, they are leading much
ahead of private insurance companies. The findings that can be drawn from the survey
conducted by us can be summarized in the way Bank Deposits are the most preferred
investment alternative which is available to people followed by alternatives such as Insurance,
Real Estate, Gold and Silver, Mutual etc.The scheme mostly preferred by insurance holders
was life protection schemes like death benefits followed by money growth plans like wealth
creation and high return plans. It was foundthat nearly 50% of the respondents usually save
less than 15% and the kind of investment mostly preferred by the respondents were both long
and short term. According to the survey safety is the most important criterion which is excepted
among all the respondents towards their investment alternatives followed by Return, Brand
Name, Tax Benefits, Liquidity and CapitalGrowth.According to the study company image is
to be the highly important criteria, which we consider before taking up a life insurance this is
mainly because people expect safety and security for their money which they invest, followed
by the factor Premium which we pay to the insurer and then Bonus and Interest paid by the
company, services etc.

37
 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.

38
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.

39
 Chapter 6
CONCLUSIONS
Insurance is a tool by which fatalities of a small number are compensated out of funds collected
from plenteous. Insurance is a safeguard against uncertain events that may occur in the future.
Company image is the highly important criteria that consumers consider before taking up a life
insurance. This is mainly because people expect safety and secure for their money which they
invest, followed by the factor Premium which we pay to the insurer and then Bonus and Interest
paid by the company, services etc LIC dominates the Indian insurance industry. In today’s
competitive world, customer satisfaction has become an important aspect to retain the
customers, not only to grow but also to serve.Increased competition, wide range of product
offerings and multiple distribution channels cause companies to value satisfied and highly
profitable customers. Customer service is the critical success factor in a company and providing
top notch customer service differentiates great customer service from indifferent customer
service. The entry of private sector insurance companies into the Indian insurance sector
triggered off a series of changes in the industry. Even with the stiff competition in the market
place, it is evident from the study that products offered by the LIC are creative, innovative and
of the liking of the customers, moreover they are satisfied by the true knowledge provided by
the company or agent sand they are easily accessible, Flexible payment schemes with no hidden
cost, there is no undue delay in claims settlement, customers are highly satisfied by the
grievance redressal mechanism, and in the near future if they will go for the policy they will
stuck to LIC of India, which shows the great faith and positive perception of the customers
towards LIC of India.
After completing the project, it is concluded that LIC develop its various plans and policies,
flexible in nature, according to the requirements of its targeted market or customers and is thus
beneficial to its customers in various ways. The most important benefit it provides to its
customers is that it is a government owned company. This led to increase in the satisfaction
level of its customer that is why LIC has more than 200 million policyholders which is equal
to the fourth largest country in world. Therefore, it is not only beneficial but better than other
insurance companies not only regarding its product but also its services.
Insurance is a large investment and you will most likely purchase multiple policies throughout
your lifetime. It is essential that you know what each type of insurance covers and how it works
so you can make the best decision about what to buy. Do not base your decision on just what
is cheapest, but look at what it provides.
Take the time to shop around and find the right insurance for your situation. People often say
they cannot afford insurance, but the reality is that they cannot afford not to have it. It can save
them from thousands or more dollars in unplanned expenses when unexpected situations arise.
You do not want to waste your money on policies that do not meet your needs, but the right
insurance policy can protect you and your family from unforeseen disasters.

40
 CHAPTER 7
REFERENCES AND BIBLIOGRAPHY

REFERENCES
• Rajni M. Shah (2007), Paper Presented at the C.D. Deshmukh Seminar on “Creating
Consumer Awareness in Life Insurance” has analysed as how to harness huge untapped
market potential For life insurance to the benefit of vast rural and semi urban populace.
• Tamzid Ahmed Chowdhury and Masud Ibn Rahman (2007), in the article, “Problems
and Strategies in Service Marketing: Bangladesh Perspective”, present conceptual
framework of The problems and strategies in services marketing that derive from five
unique characteristics of Services. The framework is based on a review of the growing
body of literature in services Marketing
• Subir Sen (2008), in his article “An Analysis of Life Insurance Demand Determinants
for Selected Asian Economies and India”
• Manjit Singh and Rohit Kumar (2008), in the paper, “Indian Insurance Industry Outlook
in the Post Reform period”, highlight that insurance penetration and density has
witnessed an Increasing trend in the post- reform period, but has a long way to go to
even come close to the Developed nations.
• Nagaraja Rao, K. (2010), with a view to popularizing life insurance, he recommends
that the consumers need To study the rural market, analyze the specific needs of each
segment and design innovative Products, to suit the requests of the people to the
objective of inclusive growth.
• Sonika Chaudhary, Priti Kiran (2011), in their paper “Life Insurance Industry in India
–Current Scenario” discussed that life insurance in India’s trend from the year 2005-06
to 2010-2011.
• Upadhyaya and Badlani (2011), in their research, attempt to identify the key success
factors in The life insurance industry, in terms of customer satisfaction so as to survive
intense Competition and to increase the market share.
• Harpreet Singh & Preeti Singh(2011), in their research, “An Empirical Analysis Of
Insurance Industry In India” have analysed the overall performance of Life Insurance
Industry of India Between pre- and post economic reform era .

41
• Syed Ibrahim (2012), in his research “Consumers’ Grievance Redressal System in the
Indian Life Insurance Industry – An Analysis” attempts to review on consumer
protection and the Awareness with reference to the grievances settlement operations of
the Life Insurance Industry In India.
• Sumathi Kumaraswamy (2012), in her research, “SWOT Analysis for Ban assurance:
Application Of Confirmatory Factor Analysis: Review Of Research” has stated that
Bank places Highest priority on customer service and satisfaction has a competitive
edge over its Competitors.
• Vijay Kumar (2012), in his PhD thesis, “A Contemporary Study of Factors Influencing
Urban And Rural Consumers for Buying Different Life Insurance Policies in Haryana”,
makes an in depth study of the factors influencing buyer behavior for buying life
insurance policies in Haryana. The survey was conducted in Haryana on 1000 policy
holder.
• Yogesh Jain (2013), in his article, “Economic Reforms and World Economic Crisis:
Changing Indian Life Insurance market place” reviews on life insurance scenario in
India, the challenges of The sector and the issues .The author has revealed that Since
opening up of Indian insurance Sector for private participation,
• Sonal Nena (2013), in her study “Performance Evaluation of Life Insurance
Corporation (LIC) of India” has tried to analyze growth and performance of LIC. She
analysed the major Source of income (Premium Earned) of the LIC, as well as the
significant heads of expenses of LIC to measure the performance.
• Vijay Maruti Kumbhar (2013), in his article A Study of FDI in Life Insurance Sector
in India has Tried to evaluate the concept of foreign direct investment and its role in
life insurance sector in India.
• Indian Monika, Halan Renuka & Sane Susan Thomas (2013), in their research article
on “Estimating losses to customers on account of mis-selling life insurance policies in
India” have Tried to determine the loss to investors from mis-selling of insurance
products.
• Dr. Sunayna Khurana (2013), in her article, “Analysis of Service Quality Gap in Indian
Life Insurance Industry” says that Life insurance companies in India offer similar kinds
of plans and Services, but they could provide differences in terms of service quality.
• Simona Laura Dragos (2014), in the research article, “Life and non-life insurance
demand: the Different effects of influence factors in emerging countries from Europe
and Asia”, Economic Research.
42
 BIBLIOGRAPHY

www.investopedia.com

www.licindia.in

www.maxlifeinsurance.com

www.globaldata.com

www.studyabroadinsurance.com

www.slideshare.net

43
 CHAPTER 8
ANNEXURE

Age?
18-30
31-40
41-50
51-60
60+

Gender?
Male
Female

Occupation?
Service
Business
Student
Freelancer

Annual Income?
Below Rs. 2,50,000
Rs.2,50,000 to Rs.3,50,000
Rs.3,50,000 to Rs.4,50,000
Rs.4,50,000 to Rs.5,50,000
Above Rs.5,50,000

Are you a LIC insurance policy holder?

Yes
No

44
Are you aware of insurance policy?
Yes
No

What type of Insurance policy are you covered under?

Life and health insurance
Term insurance
Money back
Not covered
Others

Amount of insurance you’re covered under?

1lakh
1lakh - 50 lakhs
50lakhs -1 crore
1crore or above

How much premium do you pay each month?

500
5000
10000
Or more

Do you have any problem regarding your insurance policies?

Yes
No

How much do you trust your insurance policy regarding any incident?
Fully

45
Partly
Zero
Do you have any idea about ‘How LIC works?’
Yes
No

46