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Comparative Study On LIC Visavis Its Competitors
Comparative Study On LIC Visavis Its Competitors
Abstract ………………………………………………………….…………3
Introduction ……………………………………………………….…….….5
History ………………………………..21
Nationalization ……………………….22
Subsidiaries ………………………….23
People ………………………………..23
Limitations ………………………………………………………………..26
1
Main Text ………………………………………………………………....27
Premium ……………………………………………….….31
Expenses ………………………………………………….34
Recommendations ………………………………………………………42
References …………….…………………………………………………43
Questionnaire …………………………………………………………….44
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ABSTRACT
This study is based on a comparison between the Life Insurance Corporation of India
with its competitors. The competitors are basically the private insurance companies for
example- Bharti AXA, AEGON Religare, ICICI Prudential, Birla Sun Life etc.
Private Players in the life insurance business are growing at a scorching pace. Within
three years of their inception, they have seized about 14 percent of the market. There is
another dimension to the insurance numbers game. While the private insurance
companies have attained 13 to 14 percent share of the overall insurance market, their
share in key metros (Mumbai and Delhi) is as high as 30 to 40 percent.
Private insurance companies are essentially joint ventures with global insurance
companies holding a maximum of 26 percent stake. The foreign partners are investing
heavily in the Indian market and, thereby, driving sales, because they see India
emerging as one of the biggest markets in the Asian region.
Private players have certainly done their bit to increase the penetration levels of
insurance, mainly by creating alternative distribution channels while in contrast most of
the LIC policies continue to be sold through its tied agency network. The multi-channel
approach adopted by private insurance companies has proved to be a boon in terms of
costing and their ability to capture business.
This partly explains why the LIC increased its advertising spend multifold since the
insurance sector was privatized. Its ad spend more than doubled to Rs 81 crore in the
fiscal 2003, against Rs 37 crore in 1999-2000, prior to the insurance industry being
privatized. Of course, the private insurers sector also steadily increased their ad spend,
from Rs 29 crore in fiscal 2001when the industry opened up, to Rs 92 crore the
following year. In fiscal 2003, private insurers spent Rs 143 crore on advertising.
According to the annual report 2007-2008, the major expense of private insurers were
employee expenses at 39.08 percent; advertisement /publicity at 8.92 percent; training
expenses at 5.96 percent. Employee remuneration and welfare benefits accounted for
60.75 percent of the operating expense of LIC (8309.32 crore). As the private insurers
have leaner organizational structure their average worked out to be 47.93 percent as
against 48.11 percent in 2006-2008. Advertisement and publicity expense of LIC
accounted for 2.44 percent of the total operating expense; training expense accounted
for 1.73 percent of the total operating expense.
There is also a difference in the target client of the private and the LIC. While the private
players are targeting the upper middle class and high net worth individuals, the LIC
aims for the masses through its 2048 branches spread across semi rural and rural
towns.
Life insurance industry recorded a premium income of Rs. 201351.41 crore during
2007-08 as against Rs. 156075.85 crore in the previous financial year. The first year
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premium (comprising of single premium and regular premium) amounted to Rs.
93712.52 in 2007-08 as against Rs. 75649.21 crore in 2006-07 recording a growth of
23.88 per cent as against a growth of 94.96 per cent in 2006-07. The first year premium
growth in 2007-08 over a higher growth in 2006-07 has been on account of continued
popularity of unit linked products. It is observed that LIC too has shifted its marketing
strategy in favour of unit linked products since 2006-07 though LIC’s performance has
slowed down in 2007-08. LIC reported growth of 24.17 per cent in single premium
individual policies and decline of 6.48 per cent in non-single premium individual policies.
As against these, private insurance companies reported growth of 39.45 per cent and
69.93 per cent in individual single and non-single policies respectively.
The size of life insurance market increased on the strength of growth in the economy
and concomitant increase in per capita income. This resulted in favourable growth in
total premium for both LIC (17.19 per cent and private insurers (82.50 per cent) in 2007-
08. Private insurers have improved their market share from 18.10 per cent in 2006-07 to
25.61 per cent in 2007-08 in the total premium collected during the year.
The life industry paid gross benefits of Rs. 61780.02 crore in 2007-08 constituting 30.68
per cent of the gross premium underwritten (35.73 per cent in 2006-07). The benefits
paid by the private insurers showed an increase of 111.28 per cent at Rs. 5212.24
crore, constituting 10.11 per cent of the premium underwritten (8.73 per cent in 2006-
07). LIC paid benefits of Rs. 56567.78 crore in 2007-08, constituting 37.76 per cent of
the premium underwritten (Rs. 53298.41 crore in 2006-07) constituting 41.70 per cent of
the total premium underwritten.
However a certain part of the market has been captured by the private players, LIC has
not lost its position. LIC remains by far the largest player in the market. Among the
private sector banks ICICI Prudential is the largest followed by Bajaj Allianz. It was
reported that the customers resorted to LIC after the awareness about insurance
increased as a result of the marketing efforts of the new players, because they were
attracted by the ‘security factor’ attached with the state owned insurer.
.
.
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INTRODUCTION
About Insurance
Insurance, in law and economics, is a form of risk management primarily used to hedge
against the risk of a contingent loss. Insurance is defined as the equitable transfer of the
risk of a loss, from one entity to another, in exchange for a premium, and can be
thought of as a guaranteed small loss to prevent a large, possibly devastating loss. An
insurer is a company selling the insurance; an insured is the person or entity buying
the insurance. The insurance rate is a factor used to determine the amount to be
charged for a certain amount of insurance coverage, called the premium.
Principles of insurance
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3. Accidental Loss. The event that constitutes the trigger of a claim should be
fortuitous, or at least outside the control of the beneficiary of the insurance. The
loss should be ‘pure,’ in the sense that it results from an event for which there is
only the opportunity for cost. Events that contain speculative elements, such as
ordinary business risks, are generally not considered insurable.
4. Large Loss. The size of the loss must be meaningful from the perspective of the
insured. Insurance premiums need to cover both the expected cost of losses,
plus the cost of issuing and administering the policy, adjusting losses, and
supplying the capital needed to reasonably assure that the insurer will be able to
pay claims. For small losses these latter costs may be several times the size of
the expected cost of losses. There is little point in paying such costs unless the
protection offered has real value to a buyer.
5. Affordable Premium. If the likelihood of an insured event is so high, or the cost
of the event so large, that the resulting premium is large relative to the amount of
protection offered, it is not likely that anyone will buy insurance, even if on offer.
Further, as the accounting profession formally recognizes in financial accounting
standards, the premium cannot be so large that there is not a reasonable chance
of a significant loss to the insurer. If there is no such chance of loss, the
transaction may have the form of insurance, but not the substance.
6. Calculable Loss. There are two elements that must be at least estimable, if not
formally calculable: the probability of loss, and the attendant cost. Probability of
loss is generally an empirical exercise, while cost has more to do with the ability
of a reasonable person in possession of a copy of the insurance policy and a
proof of loss associated with a claim presented under that policy to make a
reasonably definite and objective evaluation of the amount of the loss
recoverable as a result of the claim.
7. Limited risk of catastrophically large losses. The essential risk is often
aggregation. If the same event can cause losses to numerous policyholders of
the same insurer, the ability of that insurer to issue policies becomes
constrained, not by factors surrounding the individual characteristics of a given
policyholder, but by the factors surrounding the sum of all policyholders so
exposed. Typically, insurers prefer to limit their exposure to a loss from a single
event to some small portion of their capital base, on the order of 5 percent.
Where the loss can be aggregated, or an individual policy could produce
exceptionally large claims, the capital constraint will restrict an insurer's appetite
for additional policyholders. The classic example is earthquake insurance, where
the ability of an underwriter to issue a new policy depends on the number and
size of the policies that it has already underwritten. Wind insurance in hurricane
zones, particularly along coast lines, is another example of this phenomenon. In
extreme cases, the aggregation can affect the entire industry, since the
combined capital of insurers and reinsurers can be small compared to the needs
of potential policyholders in areas exposed to aggregation risk. In commercial fire
insurance it is possible to find single properties whose total exposed value is well
in excess of any individual insurer’s capital constraint. Such properties are
generally shared among several insurers, or are insured by a single insurer who
syndicates the risk into the reinsurance market.
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History of insurance
In some sense we can say that insurance appears simultaneously with the appearance
of human society. We know of two types of economies in human societies: money
economies (with markets, money, financial instruments and so on) and non-money or
natural economies (without money, markets, financial instruments and so on). The
second type is a more ancient form than the first. In such an economy and community,
we can see insurance in the form of people helping each other. For example, if a house
burns down, the members of the community help build a new one. Should the same
thing happen to one's neighbour, the other neighbours must help. Otherwise,
neighbours will not receive help in the future. This type of insurance has survived to the
present day in some countries where modern money economy with its financial
instruments is not widespread (for example countries in the territory of the former Soviet
Union).
Turning to insurance in the modern sense (i.e., insurance in a modern money economy,
in which insurance is part of the financial sphere), early methods of transferring or
distributing risk were practised by Chinese and Babylonian traders as long ago as the
3rd and 2nd millenia BC, respectively. Chinese merchants travelling treacherous river
rapids would redistribute their wares across many vessels to limit the loss due to any
single vessel's capsizing. The Babylonians developed a system which was recorded in
the famous Code of Hammurabi, c. 1750 BC, and practised by early Mediterrenean
sailing merchants. If a merchant received a loan to fund his shipment, he would pay the
lender an additional sum in exchange for the lender's guarantee to cancel the loan
should the shipment be stolen.
Achaemenian monarchs of Iran were the first to insure their people and made it official
by registering the insuring process in governmental notary offices. The insurance
tradition was performed each year in Norouz (beginning of the Iranian New Year); the
heads of different ethnic groups as well as others willing to take part, presented gifts to
the monarch. The most important gift was presented during a special ceremony. When
a gift was worth more than 10,000 Derrik (Achaemenian gold coin) the issue was
registered in a special office. This was advantageous to those who presented such
special gifts. For others, the presents were fairly assessed by the confidants of the
court. Then the assessment was registered in special offices.The purpose of registering
was that whenever the person who presented the gift registered by the court was in
trouble, the monarch and the court would help him.
A thousand years later, the inhabitants of Rhodes invented the concept of the ‘general
average'. Merchants whose goods were being shipped together would pay a
proportionally divided premium which would be used to reimburse any merchant whose
goods were jettisoned during storm or sinkage.
The Greeks and Romans introduced the origins of health and life insurance c. 600 AD
when they organized guilds called "benevolent societies" which cared for the families
and paid funeral expenses of members upon death. The Talmud deals with several
7
aspects of insuring goods. Before insurance was established in the late 17th century,
"friendly societies" existed in England, in which people donated amounts of money to a
general sum that could be used for emergencies.
Separate insurance contracts (i.e., insurance policies not bundled with loans or other
kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools
backed by pledges of landed estates. These new insurance contracts allowed insurance
to be separated from investment, a separation of roles that first proved useful in marine
insurance. Insurance became far more sophisticated in post Renaissance Europe, and
specialized varieties developed.
Toward the end of the seventeenth century, London's growing importance as a centre
for trade increased demand for marine insurance. In the late 1680s, Edward Llyod
opened a coffee house that became a popular haunt of ship owners, merchants, and
ships’ captains, and thereby a reliable source of the latest shipping news. It became the
meeting place for parties wishing to insure cargoes and ships, and those willing to
underwrite such ventures. Today, Llyod’s of London remains the leading market (note
that it is not an insurance company) for marine and other specialist types of insurance,
but it works rather differently than the more familiar kinds of insurance.
Insurance as we know it today can be traced to the Great fire of London, which in 1666
devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an
office to insure buildings. In 1680, he established England's first fire insurance
company, "The Fire Office," to insure brick and frame homes.
The first insurance company in the United States underwrote fire insurance and was
formed in Charles Town (modern-day Charleston), South Carolina, in 1732. Benjamin
Franklin helped to popularize and make standard the practice of insurance, particularly
against fire in the form of perpetual insurance. In 1752, he founded the Philadelphia
Contribution for the Insurance of Houses from Loss by Fire. Franklin's company was the
first to make contributions toward fire prevention. Not only did his company warn against
certain fire hazards, it refused to insure certain buildings where the risk of fire was too
great, such as all wooden houses. In the United States, regulation of the insurance
industry is highly Balkanized, with primary responsibility assumed by individual state
insurance departments. Whereas insurance markets have become centralized
nationally and internationally, state insurance commissioners operate individually,
though at times in concert through a national insurance commissioners’ organization.
Types of insurance
Any risk that can be quantified can potentially be insured. Specific kinds of risk that may
give rise to claims are known as "perils". An insurance policy will set out in detail which
perils are covered by the policy and which are not. Below are (non-exhaustive) lists of
the many different types of insurance that exist. A single policy may cover risks in one
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or more of the categories set out below. For example, auto insurance would typically
cover both property risk (covering the risk of theft or damage to the car) and liability risk
(covering legal claims from causing an accident).
2. Auto Insurance: -Auto insurance protects you against financial loss if you
have an accident. It is a contract between you and the insurance
company. You agree to pay the premium and the insurance company
agrees to pay your losses as defined in your policy. Auto insurance
provides property, liability and medical coverage:
a. Property coverage pays for damage to or theft of your car.
b. Liability coverage pays for your legal responsibility to others for bodily injury or
property damage.
c. Medical coverage pays for the cost of treating injuries, rehabilitation and
sometimes lost wages and funeral expenses.
An auto insurance policy is comprised of six different kinds of coverage. Most countries
require you to buy some, but not all, of these coverages. If you're financing a car, your
lender may also have requirements. Most auto policies are for six months to a year.
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disabling illness or injury. It provides monthly support to help pay such
obligations as mortgages and credit cards.
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earthquake insurance, home insurance, inland marine insurance or boiler
insurance.
Driving School Insurance provides cover for any authorized driver whilst
undergoing tuition, cover also unlike other motor policies provides cover
for instructor liability where both the pupil and driving instructor are equally
liable in the event of a claim.
Aviation insurance insures against hull, spares, deductibles, hull wear and
liability risks.
Builder’s risk insurance insures against the risk of physical loss or damage
to property during construction. Builder's risk insurance is typically written
on an "all risk" basis covering damage due to any cause (including the
negligence of the insured) not otherwise expressly excluded.
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Marine insurance and marine cargo insurance cover the loss or damage of
ships at sea or on inland waterways, and of the cargo that may be on
them. When the owner of the cargo and the carrier are separate
corporations, marine cargo insurance typically compensates the owner of
cargo for losses sustained from fire, shipwreck, etc., but excludes losses
that can be recovered from the carrier or the carrier's insurance. Many
marine insurance underwriters will include "time element" coverage in
such policies, which extends the indemnity to cover loss of profit and other
business expenses attributable to the delay caused by a covered loss.
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Credit insurance: It repays some or all of a loan when certain things
happen to the borrower such as unemployment, disability, or death.
Mortgage insurance insures the lender against default by the borrower.
Mortgage insurance is a form of credit insurance, although the name
credit insurance more often is used to refer to policies that cover other
kinds of debt.
13
Purchase insurance is aimed at providing protection on the products people
purchase. It can cover individual purchase protection, warranties, guarantees,
care plans and even mobile phone insurance. Such insurance is normally very
limited in the scope of problems that are covered by the policy.
Title insurance provides a guarantee that title to real property is vested in the
purchaser and/or mortgagee, free and clear of liens or encumbrances. It is
usually issued in conjunction with a search of the public records performed at the
time of a real estate transaction.
Travel insurance is an insurance cover taken by those who travel abroad, which
covers certain losses such as medical expenses, loss of personal belongings,
travel delay, personal liabilities, etc.
Insurance companies
Insurance companies may be classified into two groups:
Life insurance companies, which sell life insurance, annuities and pensions
products.
Non-life, General, or Property/Casualty insurance companies, which sell other
types of insurance.
General insurance companies can be further divided into these sub categories.
Standard Lines
Excess Lines
In most countries, life and non-life insurers are subject to different regulatory regimes
and different tax and accounting rules. The main reason for the distinction between the
two types of company is that life, annuity, and pension business is very long-term in
nature- coverage for life assurance or a pension can cover risks over many decades. By
contrast, non-life insurance cover usually covers a shorter period, such as one year.
In the United States, standard line insurance companies are "mainstream" insurers.
These are the companies that typically insure autos, homes or businesses. They use
pattern or "cookie-cutter" policies without variation from one person to the next. They
usually have lower premiums than excess lines and can sell directly to individuals. They
are regulated by state laws that can restrict the amount they can charge for insurance
policies.
Excess line insurance companies typically insure risks not covered by the standard lines
market. They are broadly referred as being all insurance placed with non-admitted
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insurers. Non-admitted insurers are not licensed in the states where the risks are
located. These companies have more flexibility and can react faster than standard
insurance companies because they are not required to file rates and forms as the
"admitted" carriers do. However, they still have substantial regulatory requirements
placed upon them. State laws generally require insurance placed with surplus line
agents and brokers not to be available through standard licensed insurers.
Reinsurance companies are insurance companies that sell policies to other insurance
companies, allowing them to reduce their risks and protect themselves from very large
losses. The reinsurance market is dominated by a few very large companies, with huge
reserves. A reinsurer may also be a direct writer of insurance risks as well.
The types of risk that a captive can underwrite for their parents include property
damage, public and product liability, professional indemnity, employee benefits,
employers' liability, motor and medical aid expenses. The captive's exposure to such
risks may be limited by the use of reinsurance.
There are also companies known as 'insurance consultants'. Like a mortgage broker,
these companies are paid a fee by the customer to shop around for the best insurance
policy amongst many companies. Similar to an insurance consultant, an 'insurance
broker' also shops around for the best insurance policy amongst many companies.
15
However, with insurance brokers, the fee is usually paid in the form of commission from
the insurer that is selected rather than directly from the client.
Neither insurance consultants nor insurance brokers are insurance companies and no
risks are transferred to them in insurance transactions. Third party administrators are
companies that perform underwriting and sometimes claims handling services for
insurance companies. These companies often have special expertise that the insurance
companies do not have.
About Religare
Religare Enterprises Limited (REL), is one of the leading integrated financial services
groups of India. REL’s businesses are broadly clubbed across three key verticals, the
Retail, Institutional and Wealth spectrums, catering to a diverse and wide base of
clients.
The vision is to build Religare as a globally trusted brand in the financial services
domain and present it as the ‘Investment Gateway of India’. All employees of the group
guided by an experienced and professional management team are committed to
providing financial care, backed by the core values of diligence and transparency.
REL offers a multitude of investment options and a diverse bouquet of financial services
with its pan India reach in more than 1550 locations across more than 460 cities and
towns. REL also currently operates from 10 countries globally following its acquisition of
London’s oldest brokerage and investment firm, Hichens, Harrison & Co. plc.
With a view to expand, diversify and introduce offerings benchmarked against global
best practices, Religare operates its Life Insurance business in partnership with the
global major- Aegon. For its wealth management business, Religare has partnered with
16
Australia based financial services major- Macquarie. Religare has also partnered with
Vistaar Entertainment to launch India’s first SEBI approved Film Fund offering a unique
alternative asset class of investments.
17
Fortis Healthcare Limited, established in 1996 was
founded on the vision of creating an integrated healthcare
delivery system. With 22 hospitals in India, including multi-
specialty & super specialty centres, the management is
aggressively working towards taking this number to a
significant level in the next few years to provide quality
healthcare facilities and services across the nation.
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Vision: - To build Religare as a globally trusted brand in the financial services domain
and present it as the ‘Investment Gateway of India'.
Mission: - Providing complete financial care driven by the core values of diligence and
transparency.
Brand Essence: - Core brand essence is Diligence and Religare is driven by ethical
and dynamic processes for wealth creation.
RIBL not only provides customized solutions to individual clients but also to some of the
leading corporate houses and institutions across the country.
RIBL team across the country is driven by the core philosophy of creating and delivering
value to its customers. Our strengths are a team of passionate professionals, a robust
IT infrastructure and strong risk analysis teams adept at identifying & analyzing your
risks and providing you with tailor made solutions.
Value Proposition
Presence Pan India foot print
Strong Domain Expertise Rich domain knowledge and Industry experts
Comprehensive Risk Portfolio Expertise to meet all your Insurance needs
Management
Flexibility Market understanding, proactive and customer
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centric
Stability Part of a large diversified Indian trans-national
group with presence in over 1550 locations
across more than 460 cities & towns in India and
globally across 10 countries.
Infrastructure Human, technical, physical presence, CRM
Quality Best business practices and highest quality
service
Strategic Partnerships Alliance with global and national players to get
you the best deals
About LIC
The Life Insurance Corporation of India (LIC) is the largest life insurance company in
India and also the country's largest investor. It is fully owned by the government of India.
It also funds close to 24.6% of the Indian Government's expenses. It was founded in
1956.
Headquartered in Mumbai, which is considered the financial capital of India, the Life
Insurance Corporation of India currently has 8 zonal Offices and 101 divisional offices
20
located in different parts of India, at least 2048 branches located in different cities and
towns of India along with satellite Offices attached to about some 50 Branches, and has
a network of around one million and 200 thousand agents for soliciting life insurance
business from the public
History
The Oriental Life Insurance Company, the first corporate entity in India offering life
insurance coverage, was established in Calcutta in 1818 by Bipin Behari Dasgupta and
others. Europeans in India were its primary target market, and it charged Indians heftier
premiums. The Bombay Mutual Life Assurance Society, formed in 1870, was the first
native insurance provider. Other insurance companies established in the pre-
independence era included
The LIFE INSURANCE Act and the Provident Fund Act were passed in 1912, providing
the first regulatory mechanisms in the Life Insurance industry. The Indian Insurance
Companies Act of 1928 authorized the government to obtain statistical information from
companies operating in both life and non-life insurance areas. The subsequent
Insurance Act of 1938 brought stricter state control over an industry that had seen
several financially unsound ventures fail. A bill was also introduced in the Legislative
Assembly in 1944 to nationalize the insurance industry.
Nationalization
In 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by owners
of private insurance companies. In the ensuing investigations, one of India's wealthiest
businessmen, Ram Kishan Dalmia, owner of the Times of India newspaper, was sent to
prison for two years. Eventually, the Parliament of India passed the Life Insurance of
India Act on 19/06/1956, and the Life Insurance Corporation of India was created on
01/09/1956, by consolidating the life insurance business of 245 private life insurers and
other entities offering life insurance services. Nationalization of the life insurance
business in India was a result of the Industrial Policy Resolution of 1956, which had
created a policy framework for extending state control over at least seventeen sectors of
21
the economy, including the life insurance. The company began operations with 5 zonal
offices, 33 divisional offices and 212 branch offices.
Current status
Over its existence of around 50 years, Life Insurance Corporation of India, which
commanded a monopoly of soliciting and selling life insurance in India, created huge
surpluses, and contributed around 7 % of India's GDP in 2006.
The Corporation, which started its business with around 300 offices, 5.6 million policies
and a corpus of INR 459 million, has grown to 25000 servicing around 180 million
policies and a corpus of over INR 3.4 trillion.
The organization now comprises 2048 branches, 105divisional offices and 8 zonal
offices, and employs over 1 million agents. It also operates in 12 other countries,
primarily to cater to the needs of Non Resident Indians.
With the change in the India's economic philosophy from the early 1990s, and the
subsequent relaxation of state control over several sectors of the economy, the
monopolistic position of the Life Insurance Corporation of India was diluted, and it has
had to compete with a number of other corporate entities, Indian as well as
transnational Life Insurance brands. However, it still manages to be the largest player in
the Indian market, with the lion's share of 55%.
The recent Economic Times Brand Equity Survey rated LIC as the No. 1 Service Brand
of the Country.
In the financial year 2006-07 Life Insurance Corporation of India's number of policy
holders are said to have crossed a whopping 200 million (fourth in terms of population
of the countries of the world)
Subsidiaries
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LIC Nepal: A joint venture company formed in 2001 with the Vishal Group of
Industries, Nepal.
LIC Lanka: A joint venture company formed in 2003 with the Bartleet Group of
Companies, Sri Lanka.
LIC Housing Finance: Incorporated in 19 June 1989, its main objective is to
provide long term finance for construction or purchase of houses or apartments.
It has a Dubai office.
LICHFL Care Homes: A wholly owned subsidiary of LIC Housing Finance, it
builds and operates "Assisted Community Living Centres" for senior citizens.
People
LIC is one of the largest employers in India. The organization is headed by 4 officers,
namely the Chairman and three Managing Directors. The top brass is appointed by the
Government of India after an intensive selection procedure. Though the company was
accused to go by mere seniority in number of years for the selection of the senior
management, this has changed as seen in the case of Thomas Mathew and A.
Dasgupta (Managing Directors).
The Chairman assumes authority of the CEO and chairs the board while the Managing
Directors are allotted the three main categories of the organization's functioning.
The current Chairman, Mr. T.S. Vijayan, is particularly responsible for the major IT
infrastructure turnaround that the organization has witnessed and for its
advanced EDMS structure.
D.K. Mehrotra manages the Marketing Units of LIC, which also happens to be one of
the largest spenders on advertising in India.
Thomas Mathew manages the close to $187 billion investment portfolio of the company,
which is the largest investor in the country.
Dasgupta manages the engineering and other functions, many of which are very
advanced in the Indian corporate scenario.
23
2 Max New York Life Insurance Co. New York Life, USA 2000-01
Ltd.
3 ICICI Prudential Life Insurance Co. Prudential, UK 2000-01
Ltd.
4 Om Kotak Life Insurance Co. Ltd. Old Mutual, South Africa 2001-02
5 Birla Sun Life Insurance Co. Ltd. Sun Life, Canada 2000-01
6 Tata-AIG Life Insurance Co. Ltd. American International 2000-01
Assurance Co.
7 SBI Life Insurance Co. Ltd. BNP Paribas Assurance 2001-02
SA, France
8 ING Vysya Life Insurance Co. Ltd. ING Insurance 2001-02
International, B.V.,
Netherlands
9 Allianz Bajaj Life Insurance Co. Ltd. Allianz, Germany 2001-02
10 Metlife India Insurance Co. Ltd. Metlife International 2001-02
Holdings Ltd., USA
11 Reliance Life Insurance Co. Ltd. 2001-02
12 AVIVA AVIVA International 2002-03
Holdings Ltd., UK
13 Sahara Life Insurance Co.Ltd. 2004-05
14 Shriram Life Insurance Co. Ltd. Sanlam, South Africa 2005-06
15 Bharti AXA Life Insurance Co. Ltd. AXA Holdings, France 2006-07
16 Future Generali India Life Insurance
Pantaloon Retail Ltd; Sain 2007-08
Company Ltd. Marketing Network Pvt.
Ltd.; Generali, Italy
17 IDBI Fortis Life Insurance Company Fortis, Netherlands 2007-08
Ltd.
18 Canara HSBC OBC Life Insurance HSBC, UK 2008-09
Company Ltd.
19 DLF Pramerica Life Insurance Co. Prudential of America 2008-09
Ltd.
20 Aegon Religare Life Insurance Religare, Netherlands 2008-09
Company Ltd.
OBJECTIVE
The study aims:
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b. To study various insurance companies (their history, their advertising budgets
etc.)
METHODOLOGY
The study would be carried out in two parts:
b. Primary data would be preferred to study the customer perception from which
the conclusions would be drawn thereof.
Secondary data is the data that already exists which has been collected by
some other person or organization for their use, and is generally made
available to other researchers free or at a concessional rate. In this study it
would include books, government publications, directories, internet, hard copy
etc.
LIMITATIONS
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As fitting to every research As fitting to every research work here also there are certain
limitations to the study which must be mentioned beforehand so that the reader might
perceive it in those regards:-
Time constraints: The time required to conduct the research study is a constraint as
we have also to sell insurance policies so conducting the research alone becomes
somewhat hectic.
Errors: There are always some chances of errors creeping in such as non response
errors, biased response errors etc. Some errors might also creep in during
interpretation.
MAIN TEXT
Private insurers vs LIC
Trends in insurance business
26
After opening of the insurance sector, unit linked insurance policies (ULIPs) have
become increasingly popular. Below is the growth pattern of unit linked and non linked
business.
80
70
60
50
Private
40
LIC
30 Industry
20
10
0
2005-06 2006-07 2007-08
As reflected in the bar diagrams above it is the unit linked business which is driving the
growth of premiums over the last 2-3 years. While the private players have taken the
lead in this segment, LIC has also made strong strides in the sale of ULIPs during the
last three years.
Life insurance: The life insurers underwrote a premium of Rs.14320.20 crore during
the first quarter in the current financial year as against Rs. 12511.80 crore in the
comparable period of last year recording a growth of14.45 per cent. Of the total
27
premium underwritten, LIC accounted for Rs.7524.56 crore and the private insurers
accounted for Rs. 6795.64 crore. The premium underwritten by LIC declined by 12.31
per cent while, that of private insurers increased by 72.88 per cent, over the
corresponding period in the previous year. The number of policies written at the industry
level declined by 7.78 per cent. While the number of policies written by LIC declined by
23.36 per cent, in the case of private insurers they grew by 44.00 per cent. Of the total
premium underwritten, individual business accounted for Rs. 10995.90 crore and group
business for Rs. 3324.30 crore. In respect of LIC, individual business was Rs. 5275.71
crore and group business was Rs. 2248.85 crore. In the case of private insurers, they
were Rs. 5720.19 crore and Rs. 1075.45 crore respectively. The market share of LIC
was 52.55 per cent in the total premium collection and 63.88 per cent in number of
policies underwritten, lower than 68.58 per cent and 76.87 per cent respectively,
reported in the previous year. Under the group scheme 56.13 lakh lives were covered
recording a growth of 8.51 per cent over the previous period. Of the total lives covered
under the group scheme, LIC accounted for 38.96 lakh and private insurers 12.77 lakh.
The life insurers covered 12.50 lakh lives in the social sector with a premium of Rs17.10
crore and underwrote 13.53 lakh policies with a premium of Rs. 1275.78 crore in the
rural sector.
Non-Life Insurers: During the first quarter of the current financial year, the non-life
insurers underwrote a premium of Rs. 8778.18 crore recording a growth of 17.85 per
cent over Rs. 7448.74 crore underwritten in the same period of last year. The private
non-life insurers witnessed higher growth of 22.43 per cent by underwriting premium to
the tune of Rs. 3541.78 crore as against Rs. 2892.89 crore underwritten in the same
quarter of the last year. The public non-life insurers underwrote a premium of Rs.
5236.40 crore, higher by 14.94 per cent in the first quarter of 2007-08. The market
shares of public and private insurer were 59.65 and 40.35 per cent respectively. ECGC
underwrote credit insurance of Rs. 164.70 crore as against Rs. 88.09 crore in the
previous year resulting in a significant growth of 86.98 per cent.
Segment-wise, the premium underwritten in the Fire, Marine, Motor, Health and
Miscellaneous segments by the non-life insurers were Rs. 1208.15 crore, Rs. 572.99
crore, Rs. 3624.23 crore, Rs. 1772.57 crore and Rs 1600.24 crore respectively. The
Health segment recorded the highest growth (49.67 per cent) in the first quarter of the
current financial year over the corresponding quarter of 2007-08. The Fire segment
witnessed negative growth (-13.80 per cent) over in the same period. ln terms of
number of policies, Fire and Marine, recorded negative growth rates (-5.14 per cent and
-4.37 per cent respectively) over the one year period. In the Motor segment, the public
insurers witnessed positive growth rate (23.09 per cent) in the premium underwritten
despite issuing lesser number of policies. The premium underwritten in the Motor
segment in the first quarter of the current financial year was Rs. 3624.23, constituting
41.29 per cent in the total premium underwritten. The contribution from the Public and
Private life insurer in the Motor premium was Rs. 2151.19 crore (59.36 per cent) and
Rs. 1473.04 crore (40.64 per cent) respectively.
28
The premium collection in the Health segment went up to Rs. 1772.57 in the first quarter
of the current year, constituting for 20.19 per cent in the total premium. The number of
policies, issued in this quarter, as a ratio of total number of policies worked out to 12.20
per cent. The shares of public and private non-life insurers in the Health segment
remained similar to the Motor segment, which constituted 58.72 per cent (Public) and
41.28 per cent (Private) respectively in the first quarter of the current financial year. In
terms of number of policies issued Health segment recorded a growth of 12.95 per cent.
This growth was sharper in the public insurers with 20 per cent.
Paid up Capital
The total capital of the life insurers at end March 2008 stood at Rs. 12296.42 crore. The
additional capital brought in by the existing private insurers during 2007-08 was Rs.
3787.01 crore and the two new entrants, brought in equity of Rs. 385 crore making the
total additional capital brought in 2007-08 by the private insurers to Rs. 4172.01 crore.
Of this, the domestic and the foreign joint venture partners added Rs. 3160.12 crore and
Rs. 1011.88 crore respectively.
There has been no infusion of capital in the case of LIC which stood at Rs.5 crore.
Number of offices
By the end of March 2008, there were eighteen life insurance companies operating in
India. Subsequently, Aegon Religare Life Insurance Company Ltd., Canara HSBC
Oriental Bank of Commerce Life Insurance Co. Ltd., DLF Pramerica Life Insurance
Company Ltd. were given Certificate of Registration by the Authority. With these two
new companies the total number of life insurance companies operating in India rose to
21.
The number of offices of the life insurers has increased dramatically in the year 2007-08
from 5373 at the beginning of the year to 8913 by the end of the year, showing a growth
of over 65 per cent. A major portion of this expansion was in the private sector whose
offices more than doubled from 3072 to 6391. LIC’s offices increased at a more modest
10 per cent from 2301 offices to 2522.
29
Insurer 2001 2002 2003 2004 2005 2006 2007 2008
Private 13 116 254 416 804 1645 3072 6391
LIC 2186 2190 2191 2196 2197 2220 2301 2522
Industr 2199 2306 2445 2612 3001 3865 5373 8913
y Total
Note: Office as defined under Section 64 VC of the insurance Act, 1938
Significantly, the number of offices of private life insurers in semi-urban and smaller
locations put together increased the highest, by over 140 per cent, from 1908 to 4592 in
2007-08.
New Policies
New policies underwritten by the industry were 508.74 lakh in 2007-08 as against
461.52 lakh during 2006-07 showing an increase of 10.23 per cent. While the private
insurers exhibited a growth of 67.40 per cent, (previous year 104.64 per cent), LIC
showed a decline of 1.61 per cent as against a growth of 21.01 per cent in 2006-07.
30
LIC 38229292 (21.01) 37612599 (-1.61)
Private Sector 7922274 (104.64) 13261558 (67.40)
Total 46151566 50874157
The market shares of private insurers and LIC, in terms of number of policies
underwritten, were 26.07 per cent and 73.93 per cent as against 17.17 per cent and
82.83 per cent respectively in 2006-07.
Premium
Life insurance industry recorded a premium income of Rs. 201351.41 crore during
2007-08 as against Rs. 156075.85 crore in the previous financial year, recording a
growth of 29.01 per cent. Regular premium, single premium, renewal premium in 2007-
08 were Rs. 54888.16 crore (27.26 per cent); Rs. 38824.36 crore (19.28 per cent); and
Rs. 107638.89 crore (153.46 per cent), respectively. The first year premium (comprising
of single premium and regular premium) amounted to Rs. 93712.52 in 2007-08 as
against Rs. 75649.21 crore in 2006-07 recording a growth of 23.88 per cent as against
a growth of 94.96 per cent in 2006-07. The first year premium growth in 2007-08 over a
higher growth in 2006-07 has been on account of continued popularity of unit linked
products. It is observed that LIC too has shifted its marketing strategy in favour of unit
linked products since 2006-07 though LIC’s performance has slowed down in 2007-08.
While at the industry level, there has been a growth because of slow down in the
premium underwritten by LIC the growth levels in 2007-08 were lower than 2006-07.
LIC reported growth of 24.17 per cent in single premium individual policies and decline
of 6.48 per cent in non-single premium individual policies. LIC reported a growth of 9.11
per cent in Group Single Premium. As against these, private insurance companies
reported growth of 39.45 per cent and 69.93 per cent in individual single and non-single
policies respectively. The growth in the number of policies underwritten in the Group
Single and Non- single segments by the private insurers stood at 54 and 1 per cent
respectively. A shift in the shares of first year premium and renewal premium to the total
premium was observed in 2007-08. In 2007-08 renewal premium accounted for 53.46
per cent of the total premium underwritten slightly higher than 51.53 per cent in 2006-
07.
31
LIC 26337.22 (78.10) 33774.56 (28.24)
Private Sector 3950.82 (44.04) 5049.80 (27.82)
Total 30288.04 (72.60) 38824.36 (28.18)
First Year Premium
LIC 56223.56 (97.17) 59996.57 (6.71)
Private Sector 19425.65 (89.08) 33715.95 (73.56)
Total 75649.21 (94.96) 93712.52 (23.88)
Renewal premium
LIC 71599.28 (14.97) 89793.42 (25.41)
Private Sector 8827.36 (83.37) 17845.47 (102.16)
Total 80426.64 (19.87) 107638.89 (33.83)
Total Premium
LIC 127822.84 (40.79) 149789.99 (17.19)
Private Sector 28253.01 (87.31) 51561.42 (82.50)
Total 156075.86 (47.38) 201351.41 (29.01)
Market share
The size of life insurance market increased on the strength of growth in the economy
and concomitant increase in per capita income. This resulted in favourable growth in
total premium for both LIC (17.19 per cent) and private insurers (82.50 per cent) in
2007-08. Private insurers have improved their market share from 18.10 per cent in
2006-07 to 25.61 per cent in 2007-08 in the total premium collected during the year.
Segregation of the first year premium underwritten during 2007-08 indicates that Life,
Annuity, Pension and Health contributed 59.54, 2.75, 37.61 and 0.10 per cent
respectively in the previous year. The shift in favour of pension products is visible for the
third consecutive year.
32
Single Premium
LIC 86.96 86.99
Private Sector 13.04 13.01
Total 100.00 100.00
First Year Premium
LIC 74.32 64.02
Private Sector 25.68 35.98
Total 100.00 100.00
Renewal Premium
LIC 89.02 83.42
Private Sector 10.98 16.58
Total 100.00 100.00
Total Premium
LIC 81.90 74.39
Private Sector 18.10 25.61
Total 100.00 100.00
33
Expenses
As against the industry average of 16.25 per cent (16.59 per cent in 2006-07), LIC
incurred an expense ratio of 17.01 per cent (16.03 per cent in 2006-07) towards
commission on first year premium (excluding Single Premium). For the private insurers
this ratio worked out to be 15.56 per cent (17.68 per cent in 2006-07). The commissions
paid by LIC towards the single premium was 1.49 per cent as against industry average
of 1.43 per cent. The corresponding ratio for private insurers averaged to 1 per cent.
The total commission paid bythe life insurers in 2007-08 amounted to Rs. 14704.3 crore
as against Rs. 12258.99 crore in 2006-07. It was observed that commissions paid by
the life insurance companies for procurement of new business has increased
competition in the sector.
34
COMMISSION EXPENSES OF LIFE INSURERS (Rs. crore)
The major expense heads for the private insurers were employee expenses at 39.08
per cent (37.93 per cent in 2006-07); advertisement and publicity at 8.92 per cent (8.89
in 2006-07); training expenses (including agents training and seminars) at 5.96 per cent
(6.92 per cent in 2006-07). Employee remuneration and welfare benefits accounted for
60.75 per cent of the operating expenses of LIC in 2007-08 as against 57.49 per cent in
the previous year.
As the private insurers have leaner organizational structures compared to LIC their
average worked out to be 47.93 per cent as against 48.11 per cent in 2006-07.
Advertisement and publicity expenses of LIC accounted for 2.44 per cent of the total
operating expenses (3.03 per cent in 2006-07). Training expenses in the case of LIC
accounted for 1.73 per cent of the operating expenses (1.93 per cent in 2006-07).
Benefits Paid
The life industry paid gross benefits of Rs. 61780.02 crore in 2007-08 (Rs. 55765.35
crore in 2006-07)constituting 30.68 per cent of the gross premium underwritten (35.73
per cent in 2006-07). The benefits paid by the private insurers showed an increase of
111.28 per cent at Rs. 5212.24 crore (Rs. 2466.94 crore in 2006-07), constituting 10.11
per cent of the premium underwritten (8.73 per cent in 2006-07). LIC paid benefits of
Rs. 56567.78 crore in 2007-08, constituting 37.76 per cent of the premium underwritten
(Rs. 53298.41 crore in 2006-07) constituting 41.70 per cent of the total premium
underwritten. The benefits paid by the life insurers net of re-insurance were Rs.
61687.77 crore (Rs. 55715.01 crore in 2006-07). There has been a significant increase
in the benefits paid on account of surrenders/withdrawals amounting to Rs. 21677.25
crore as against Rs. 17690.32 crore in 2006-07.
Investment income
In the case of LIC, the investment income including capital gains was higher at Rs.
56595.06 crore in 2007-08 compared to Rs. 46784.71 crore in 2006-07. As a
percentage of total income, it increased to 37.78 per cent in2007-08 from a decline of
36.6 per cent in 2006-07. The investment income of the private insurers, inclusive of
capital gains, was Rs. 6602.62 crore in 2007-08 as against Rs. 2478.48 crore in 2006-
07. The share of investment income in the total income for the private life insurers
increased to 23.37 per cent in 2007-08 (4.81 per cent in 2006-07).
In 2007-08, four of the private sector companies reported net profits. SBI Life insurance
company was the first private company to report net profit of Rs. 2.02 crore in 2005-06.
It reported higher net profit of Rs. 3.83 crore in 2006-07 and further increased its net
profit level to Rs. 34.38 crore in 2007-08. The company has succeeded in achieving an
early break even on account of its lower cost of operations due to the large network of
its Indian partner, the State Bank of India. However, the insurer still continues to report
a deficit in the Revenue Account. Shriram Life, which commenced operations in
February, 2006, too reported net profit for the third successive year of operations.
However, it reported a lower net profit of Rs. 5.58 crore in 2007-08 as against Rs. 9.5
crore in 2006-07. With the total premium underwritten at Rs. 184.16 crore, the
company’s operations have, however still to take off in a significant manner. In 2007-08,
Metlife and Sahara life have reported net profits of Rs. 21.25 crore and Rs. 3.34 crore
36
respectively. As against net loss of Rs. 11.96 crore in 2006-07, Metlife reported net
profit of 21.25 crore in 2007-08. The company has reported profits by carrying deficit of
Rs. 488 crore in the revenue account. Sahara Life has reported maiden net profits in
2007-08 at Rs. 3.34 crore, against net loss of Rs. 51.44 lakh in 2006-07.
All the private insurance companies reported deficit in their respective Revenue
Accounts in 2007-08. Some of these companies reported surpluses in some segments
of their business in 2006-07. The deficits in Revenue account necessitated injection of
further capital by the shareholders (except for Shriram Life).
Returns to shareholders
During 2007-08, the net losses reported by the private insurers stood at Rs.4324.52
crore (Rs. 1950.12 crore in 2006-07). The net profits in the Profit & Loss account of the
five insurers, including LIC, stood at Rs. 909.19 crore (Rs. 786.95 crore in 2006-07).
The continued financial support through equity injections reflected the promoters’
commitment towards stabilizing the respective insurer’s operations.
Retention Ratio
LIC traditionally re-insures a small component of its business. During 2007-08, Rs.
87.95 crore was ceded as re-insurance premium (Rs. 41.67 crore in 2006-07). Similarly,
in the case of private insurers, a small component of the business was re-insured, with
group business forming the major component of the re-insurance cessions. The private
insurers together ceded Rs. 231.23 crore (Rs. 160.05 crore in 2006-07) as premium
towards re-insurance.
37
FINDINGS AND CONCLUSION
A sample consisting of 75 respondents was taken randomly. It included individuals of
almost all age groups. These respondents were given a questionnaire to be filled by
them and on the basis of that questionnaire some findings were drawn out. Below is the
percentage of likelihood for various companies based on the perception in the mind of
customer.
Pushkar Lahiri
Chandni Negi LIC
Deepak Singh Negi
Sanjeev Goel MAX New York
Jasbeer Singh Tomar SBI Life
Vibha Gurung
Rachiyata Birla Sun Life
Sunil Malik TATA AIG
Raju Saini
Tarandeep Singh ICICI Prudential
Siddharth Gupta Bharti AXA
Bimal Singh
Sandeep Singh AEGON Religare
Sanjeev Sharma Bajaj Allianz
Vikas Nanda
HDFC Standard Life
0% 20% 40% 60% 80% 100%
Rajeev Jain
Richa B. Ahuja
Amit Kumar Bhatt LIC
Pooja Kapoor
Manju Joshi MAX New York
Rajan Kapoor SBI Life
Rahul Bajaj Birla Sun Life
Sakshita Davey TATA AIG
Amit Kumar
E.K. Ramakrishnan ICICI Prudential
Ankit Jain Bharti AXA
Anil Kumar Joshi AEGON Religare
Pratap Singh Chauhan Bajaj Allianz
Sunil Tomar HDFC Standard Life
Virendra Singh Chauhan
0% 20% 40% 60% 80% 100%
38
Sumit
Shashi Bhushan Semwal
Jitendra Kumar Bansal
Sandeep Kumar LIC
Tauquir Ali MAX New York
Altaf Mohd. Khan SBI Life
Devendra Kumar Birla Sun Life
Aftab Ahmed TATA AIG
Ajit Kumar
Satish Chandra Kesarwani ICICI Prudential
Aashish Srivastava Bharti AXA
Jai Prakash Gupta AEGON Religare
Pradeep Kesarwani Bajaj Allianz
Nusrat Ali Ansari HDFC Standard Life
Satyapal Singh
0% 20% 40% 60% 80% 100%
Mandeep
Radhey Shyam
Manmohan Singh
Jagdish Singh LIC
Dinesh Katwal MAX New York
Preeti Agarwal SBI Life
Ahuja Bhatt Birla Sun Life
Shahnawaz TATA AIG
Ritesh Kumar
ICICI Prudential
Gulshan Kumar
Bharti AXA
Nand Kishore
AEGON Religare
S.K. Sharma
V.K. Sharma Bajaj Allianz
Gaurav Bhatt HDFC Standard Life
Naveen Singh
0% 20% 40% 60% 80% 100%
39
Hari Singh
Sandeep Kumar Mishra
Ruchi Malhotra
Abul Khalil LIC
Devendra Singh MAX New York
Anu Goyal SBI Life
Preeti Mittal Birla Sun Life
Moinuddin Mullah TATA AIG
Manav Verma
ICICI Prudential
Sushmita Goel
Bharti AXA
Sandeep Sharma
Rajeev Sharma AEGON Religare
Ashish Mohan Bajaj Allianz
Rakesh Goswami HDFC Standard Life
Kamal Prasad Sharma
0% 20% 40% 60% 80% 100%
Now, based on the perception of the customer about various companies a pie chart can
be drawn out which would show the likeliness/preference of the customer for a company
while choosing his/her insurance policy.
LIC=17.23%
MAX New York=10.95%
SBI Life=11.46%
Birla Sun Life=9.89%
TATA AIG=9.67%
ICICI Prudential=10.98%
Bharti AXA=7.24%
AEGON Religare=3.63%
Bajaj Allianz=10.27%
HDFC Standard Life=8.63%
The pie chart clearly indicates that the customers prefer LIC as their insurance provider
followed by SBI Life, ICICI Prudential, MAX New York, Bajaj Allianz, Birla Sun Life,
TATA AIG,HDFC Standard Life, Bharti AXA, AEGON Religare. The lowest preference is
40
for Aegon Religare as most of the people do not know much about it. There might be
another reason to it that as Aegon Religare has just entered the insurance industry most
of the customer are not aware of it.
Another dimension mentioned in the questionnaire were the factors that influence an
individual while selecting an insurance policy. These factors were Rate of Return, Tax
Benefit, Flexibility, Services Provided, Risk cover, Charges and Goodwill. These factors
have been reflected in the pie chart below with their respective percentage based on the
perception of the customer.
Rate of return=16.08%
Tax Benefit=14.01%
Flexibility=10.39%
Services provided=16.28%
Risk cover=15.41%
Charges=10.91%
Goodwill=16.9%
From the pie diagram it may be concluded that most of the people prefer LIC because
of its goodwill (17%). LIC is in the market since several years (1956) and has created a
good position in the minds of the customers. However, as we know that the rate of
return offered by LIC in its policies is much lower as compared to the private life
insurers, yet the customers go for LIC as they consider it to be more safe and has less
risk. It is because of the rate of return, services provided, lower charges that the private
insurers are able to snatch a certain portion of market of LIC. The market share of LIC
and Private insurers in 2006-07 was 81.9% and 18.10%, however, because of the
advertisements, higher rate of return, high flexibility, lower charges their market share in
2007-08 increased to 25.61% whereas that of LIC lowered to 74.39%.
Despite the fact that some portion of the market has been overtaken by private insurers,
LIC continues to be a market leader and bears goodwill in the minds of the customers.
41
RECOMMENDATIONS
The people of Dehradun were astonished to hear that Aegon Religare is an insurance
company. The results shown above prove this statement. As mentioned above, simple
random sampling was done and 75 respondents perspective was collected. On the
basis of that perspective Aegon Religare has 3.63% share in the minds of the
customers. This clearly shows the management’s leanness in projecting the company
as another insurance company.
Personal experience: - while the respondents were filling the questionnaire they were
asked as to whether they knew about Aegon Religare and to my astonishment they
responded “WHICH COMPANY IS IT? / IS IT ALSO AN INSURANCE COMPANY?” .
it was such a shame on my side that the company I was working with was never heard
of.
42
REFERENCES
Websites:-
www.licindia.com
www.wikipedia.org
www.icallinsurance.com
www.bimaonline.com
www.irdaindia.org
http://www.religareinsurance.com
www.censusofindia.org
Books:-
Insurance Fundamentals, Environment and Procedures by B S Bodla,
M C Garg, K P Singh.
Life insurance and General Insurance from ICMR.
Others:-
T.S. Ramakrishna Rau, Insurance Chronicle, January 2009
Endowment plans now, Business India, March 2009
Niraj Bajaj , ‘insuring a bright future’ ,business India, April2008
Articles related to insurance from various news papers like The
Times of India, The Hindu, Economic Times, Business Standard etc.
ICMR books on Financial Management and Business Research
Methods.
IRDA Journal
43