ANALYTICAL STUDY OF INSURANCE POLICIES OFFERED BY LIFE INSURANCE CORPORATION OF INDIA (FIVE YR 2008-2012)

Specialization : By : Aseem P. Pathak Project Guide : Ashwin Dhala

INTRODUCTION OF TOPIC
Financial Management means planning, organizing, directing

and 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 accumulate wealth, but to feel financially secure. Other then this when you opt for a life insurance policy you 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 Life Insurance 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 few guidelines that an individual should follow prior to opting for a

Company Profile
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. In 1907, Hindustan 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.
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OBJECTIVES OF THE STUDY

How Life Insurance Corporation of India Insurance is best

services 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

Consumer in favour of buying the insurance policy of Life

Insurance 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 of

Life Insurance Corporation of India.

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THEORETICAL PERSPECTIVE
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 product pricing 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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DATA ANALYSIS AND INTERPRETATION

Q1) Are you having any policy/ policies?
Particulars Jeevan Arogya Bima Account Jeevan Anurag Jeevan Kishor Jeevan Adhar Jeevan Vishawas Jeevan Mitra Jeevan Anand Money Back With Profit Bima Bachat Jeevan Bharthi Whole Life Policy Joint Life Plans Response Percentage 6% 5% 9% 8% 8% 7% 6% 5% 10% 9% 8% 10% 9%

Interpretation As seen in the graph above maximum respondents are used 10% Money Back with Profit and 10% Whole Life Policy than others 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.

Q2) Which Type of Policy/Policies you have taken?

Particulars Insurance Plan Children Plans Plans For Handicapped dependents Endowment assurance plans Money back plan Special money back plan for Women Whole life plans Joint Life Plan

Response Percentage 9% 11% 8% 7% 18% 16% 19% 12%

Interpretation As seen in the graph above maximum respondents are used 19% Whole life plans, 18% Money back plan, 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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Q3). Are you interested in products offered by the Life Insurance Policy? Particulars Yes No Will think Response Percentage 61% 22% 17%

Interpretation The good thing is that at least the corporate were quite eager to find out what LIC Life Insurance Policy has to offer whereas the major 61 % of the corporate were not even interested in the products as they are quite satisfied by the LIC and they are not in breaking their long relationship with them. The private players will have to play a long battle in order to ensure that they are serious player in the market.

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Q4). Are you satisfied with your present insurer Life Insurance Policy?

Particulars Yes No

Response Percentage 95% 5%

Interpretation Here is where the challenge is. Inevitably most of the players are very satisfied with their present insurer which makes it tougher for the private players to attract the corporate. The remaining 5 % are also not very dissatisfied by the services but they are just open to new avenues and are looking forward that private companies come with good offers so that they may shift to them. Thus private players will have to be very proactive and in this regard since LIC is the leader and LIC Life Insurance Policy is lagging behind its competitors in terms of competition.

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Q5). What is peoples main concern while taking a insurance policy? Concern of People Security Savings Tax Response Percentage 10% 70% 20%

InterpretationThis pie diagram shows that People Investing more in Business for the concern of Savings Mainly.

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Q6). Where would you like to insure if given chance?

Companies name LIC ICICI BAJAJ ALLIANZ BHARTI-AXA SBI KOTAK MAHINDRA

Percentage of people 60% 10% 5% 15% 8% 2%

InterpretationThus we see that the companies are comfortable in having business with govt. owned companies as they feel its 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 to 10 with one being least satisfied)

Customers I II III IV V VI VII

Response (Ratings on scale 1-10) 26% 11% 21% 5% 16% 13% 8%

InterpretationThe response of customers show that they are average satisfied and some are also least satisfied after taking the insurance policy.

Q8). Opinion for the premiums paid for the various policies by the customers?

Satisfaction Levels Very Low Low Moderate High Very High

Response Percentage 9% 10% 11% 30% 40%

Interpretation40%people are very highly satisfied, 30% of people are highly satisfied,11% are moderate, 10% of people are low satisfied, 9% are very low satisfied.

Q9) How you come to know about this policy? Particulars Advertisements Friends and Relatives Direct selling (i) and (ii) (ii) and (iii) (iii) and (i) Response Percentage 31% 9% 26% 4% 14% 10%

InterpretationThis pie diagram shows that People know about this policy Mainly from 26% people Direct selling and 31% people from advertisement.

Q10). Are there any incentives (tax benefits or Bonuses) associated with insurance policy Particulars Tax Benefits Bonuses Response Percentage 60% 40%

InterpretationResponses show that customers prefer more of tax benefit rather than the bonuses while taking insurance policy. Thats why the ratio of Tax benefit to Bonus is 3:2.

Q11). Are you satisfied with the incentives associated with your policy? Satisfaction Level of Customers Highly Satisfied Satisfied Moderate Unsatisfied Highly Unsatisfied Level of Satisfaction (in %) 30% 40% 15% 5% 10%

InterpretationIt shows that the customers are moreover satisfied with the incentives plans but to cater the needs of other company may have to look for other incentives.

CONCLUSIONS
On the basis of the study it has been seen that researcher got

that 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 different different 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
Books:
Life and Health Insurance Kenneth 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(16th july 2006)

Websites
http://www.licindia.in/joint_life_001_features.htm www.irdaindia.org http://www.sebi.com
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