ACKNOWLEDGEMENT

A researcher venture to accept the challenging task only when he is fortunate

enough to receive in plenty the inspiration and blessing of enlightened
teachers and guides who patronize the students with benevolent spirit of
magnanimity.

I wish to express my gratitude and sincere thanks to my major advisor

Miss.Manpreet Kaur lecturer in Bhutta College of Engineering &
technology, Bhutta (Ludhiana) under whose able guidance this project is
completed.

My cordial and sincere thanks are also due to all faculty and staff members
of institute for their willing support and co-operation during my study.

I shall fail in my duties I do not acknowledge the generous help , co-

operation and valuable suggestions received from my friends during courses
of study.

( BALWINDER SINGH )

CERTIFICATE
This is to certify that the study entitled “Customer satisfaction &
comparison between LIC (Public Sector) & ICICI Prudential Life
Insurance” submitted for the degree of Master of Business Administration
(MBA) to Bhutta College of Engineering & Technology, Ludhiana, affiliated
to Punjab Technical University, Jalandhar is a bonafied research work
carried out by Mr.Balwinder Singh under my guidance and supervision
and no part of this project has been submitted for any other degree.

The assistance and help received during the course of investigation have been
fully acknowledged.

Major Field- Marketing

Minor Field- Finance

Miss. Manpreet Kaur

Lecturer of Management
Bhutta College of Engineering & Technology.
 CHAPTER-1
“INTRODUCTION
TO
LIC &
ICICI PRUDENT.

A# BRIEF HISTORY OF INSURANC

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 company 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. Bharat Insurance
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 Assurance at Lahore were
established in 1906. 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. Prior to 1912 India had no
legislation to regulate insurance business. In the year 1912, the Life
Insurance Companies Act, and the Provident Fund Act were passed. 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 twentieth century saw lot of growth in insurance
business. From 44 companies with total business-in-force as Rs.22.44 crore, it
rose to 176 companies with total business-in-force as Rs.298 crore in 1938.
During the mushrooming of insurance companies many financially unsound
concerns 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. The
demand for nationalization of life insurance industry was made repeatedly in
the past but it gathered momentum in 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
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 Act on the 19th
of June 1956, and the Life Insurance Corporation of India was created on 1st
September, 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 cost.
B#Introduction to LIC of India

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart
from its corporate office in the year 1956. Since life insurance contracts are
long term contracts and during the currency of the policy it requires a
variety of services need was felt in the later years to expand the operations
and place a branch office at each district headquarter. re-organization of
LIC took place and large numbers of new branch offices were opened. As a
result of re-organisation servicing functions were transferred to the
branches, and branches were made accounting units. It worked wonders
with the performance of the corporation. It may be seen that from about
200.00 crores of New Business in 1957 the corporation crossed 1000.00 crores
only in the year 1969-70, and it took another 10 years for LIC to cross
2000.00 crore mark of new business. But with re-organisation happening in
the early eighties, by 1985-86 LIC had already crossed 7000.00 crore Sum
Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 100
divisional offices, 7 zonal offices and the Corporate office. LIC’s Wide Area
Network covers 100 divisional offices and connects all the branches through
a Metro Area Network. LIC has tied up with some Banks and Service
providers to offer on-line premium collection facility in selected cities. LIC’s
ECS and ATM premium payment facility is an addition to customer
convenience.
TECHNOLOGY OF LIC
LIC has been one of the pioneering organizations in India who introduced
the leverage of Information Technology in servicing and in their business.
Data pertaining to almost 10 crore policies is being held on computers in
LIC. We have gone in for relevant and appropriate technology over the
years.

1964 saw the introduction of computers in LIC. Unit Record Machines

introduced in late 1950’s were phased out in 1980’s and replaced by
Microprocessors based computers in Branch and Divisional Offices for Back
Office Computerization. Standardization of Hardware and Software
commenced in 1990’s. Standard Computer Packages were developed and
implemented for Ordinary and Salary Savings Scheme (SSS) Policies.

FRONT END OPERATIONS

With a view to enhancing customer responsiveness and services , in July

1995, LIC started a drive of On Line Service to Policyholders and Agents
through Computer. This on line service enabled policyholders to receive
immediate policy status report , prompt acceptance of their premium and get
Revival Quotation, Loan Quotation on demand. Incorporating change of
address can be done on line. Quicker completion of proposals and dispatch of
policy documents have become a reality. All our 2048 branches across the
country have been covered under front-end operations. Thus all our 100
divisional offices have achieved the distinction of 100% branch
computerisation. New payment related Modules pertaining to both ordinary
& SSS policies have been added to the Front End Package catering to Loan,
Claims and Development Officers’ Appraisal. All these modules help to
reduce time-lag and ensure accuracy.

METRO AREA NETWORK

A Metropolitan Area Network, connecting 74 branches in Mumbai was

commissioned in November, 1997, enabling policyholders in Mumbai to pay
their Premium or get their Status Report, Surrender Value Quotation, Loan
Quotation etc. from ANY Branch in the city. The System has been working
successfully. More than 10,000 transactions are carried out over this
Network on any given working day. Such Networks have been implemented
in other cities also.

WIDE AREA NETWORK

All 7 Zonal Offices and all the MAN centres are connected through a Wide
Area Network (WAN). This will enable a customer to view his policy data
and pay premium from any branch of any MAN city. As at November 2005,
we have 91 centers in India with more than 2035 branches networked under

INTERACTIVE VOICE RESPONSE SYSTEMS (IVRS)

IVRS has already been made functional in 59 centers all over the country.
This would enable customers to ring up LIC and receive information (e.g.
next premium due, Status, Loan Amount, Maturity payment due,
Accumulated Bonus etc.) about their policies on the telephone. This
information could also be faxed on demand to the customer.

LIC ON THE INTERNET

Our Internet site is an information bank. We have displayed information

about LIC & its offices . Efforts are on to upgrade our web site to make it
dynamic and interactive.The addresses/e-mail Ids of ur Zonal Offices, Zonal
Training Centers, Management Development Center, Overseas Branches,
Divisional Offices and also all Branch Offices with a view to speed up the
communication process.

PAYMENT OF PREMIUM AND POLICY STATUS ON INTERNET

(You have to register for these services)

LIC has given its policyholders a unique facility to pay premiums through
Internet absolutely free and also view their policy details on Internet
premium payments.There are 11 service providers with whom L I C has
signed the agreement to provide this service.

LIC has been one of the pioneering organizations in India who introduced
the leverage of Information Technology in servicing and in their business.
Data pertaining to almost 10 crore policies is being held on computers in
LIC. We have gone in for relevant and appropriate technology over the
years.

1964 saw the introduction of computers in LIC. Unit Record Machines

introduced in late 1950’s were phased out in 1980’s and replaced by
Microprocessors based computers in Branch and Divisional Offices for Back
Office Computerization. Standardization of Hardware and Software
commenced in 1990’s. Standard Computer Packages were developed and
implemented for Ordinary and Salary Savings Scheme (SSS) Policies.

FRONT END OPERATIONS

With a view to enhancing customer responsiveness and services , in July
1995, LIC started a drive of On Line Service to Policyholders and Agents
through Computer. This on line service enabled policyholders to receive
immediate policy status report , prompt acceptance of their premium and get
Revival Quotation, Loan Quotation on demand. Incorporating change of
address can be done on line. Quicker completion of proposals and dispatch of
policy documents have become a reality. All our 2048 branches across the
country have been covered under front-end operations. Thus all our 100
divisional offices have achieved the distinction of 100% branch
computerisation. New payment related Modules pertaining to both ordinary
& SSS policies have been added to the Front End Package catering to Loan,
Claims and Development Officers’ Appraisal. All these modules help to
reduce time-lag and ensure accuracy.

METRO AREA NETWORK

A Metropolitan Area Network, connecting 74 branches in Mumbai was

commissioned in November, 1997, enabling policyholders in Mumbai to pay
their Premium or get their Status Report, Surrender Value Quotation, Loan
Quotation etc. from ANY Branch in the city. The System has been working
successfully. More than 10,000 transactions are carried out over this
Network on any given working day. Such Networks have been implemented
in other cities also.

WIDE AREA NETWORK

All 7 Zonal Offices and all the MAN centres are connected through a Wide
Area Network (WAN). This will enable a customer to view his policy data
and pay premium from any branch of any MAN city. As at November 2005,
we have 91 centers in India with more than 2035 branches networked under
WAN.

INTERACTIVE VOICE RESPONSE SYSTEMS (IVRS)

IVRS has already been made functional in 59 centers all over the country.
This would enable customers to ring up LIC and receive information (e.g.
next premium due, Status, Loan Amount, Maturity payment due,
Accumulated Bonus etc.) about their policies on the telephone. This
information could also be faxed on demand to the customer.

LIC ON THE INTERNET

Our Internet site is an information bank. We have displayed information

about LIC & its offices . Efforts are on to upgrade our web site to make it
dynamic and interactive.The addresses/e-mail Ids of ur Zonal Offices, Zonal
Training Centers, Management Development Center, Overseas Branches,
Divisional Offices and also all Branch Offices with a view to speed up the
communication process.

PAYMENT OF PREMIUM AND POLICY STATUS ON INTERNET

(You have to register for these services)

LIC has given its policyholders a unique facility to pay premiums through
Internet absolutely free and also view their policy details on Internet
premium payments.There are 11 service providers with whom L I C has
signed the agreement to provide this service.
INSURANCE PLAN
As individuals it is inherent to differ. Each individual’s insurance needs and
requirements are different from that of the others. LIC?s Insurance Plans
are policies that talk to you individually and give you the most suitable
options that can fit your requirement.

Jeevan Anurag Komal Jeevan

CDA Endowment Vesting At 21
CDA Endowment Vesting At 18
Jeevan Kishore
Child Career Plan
Child Fortune Plus
Marriage Endowment Or
Educational Annuity Plan
Jeevan Chhaya
Child Future Plan

Jeevan Aadhar
Jeevan Vishwas

The Endowment Assurance Policy

The Endowment Assurance Policy-Limited Payment
Jeevan Mitra(Double Cover Endowment Plan)
Jeevan Mitra(Triple Cover Endowment Plan)
Jeevan Anand
New Janaraksha Plan
Jeevan Amrit

Jeevan Shree-I
Jeevan Pramukh

The Money Back Policy-20 Years

The Money Back Policy-25 Years
Jeevan Surabhi-15 Years
Jeevan Surabhi-20 Years
Jeevan Surabhi-25 Years
Bima Bachat
 Jeevan Bharati - I

The Whole Life Policy

The Whole Life Policy- Limited Payment
The Whole Life Policy- Single Premium
Jeevan Anand
Jeevan Tarang

Two Year Temporary Assurance Policy

The Convertible Term Assurance Policy
Anmol Jeevan-I
Amulya Jeevan-I

Jeevan Saathi Plus

Jeevan Saathi

Pension Plans are Individual Plans that gaze into your future and
foresee financial stability during your old age. These policies are most
suited for senior citizens and those planning a secure future, so that
you never give up on the best things in life.

Jeevan Nidhi
Jeevan Akshay-VI
New Jeevan Dhara-I
New Jeevan Suraksha-I
Unit plans are investment plans for those who realise the worth of hard-
earned money. These plans help you see your savings yield rich benefits and
help you save tax even if you don't have consistent income.

Wealth Plus
Market Plus I
Profit Plus
Money Plus-I
Child Fortune Plus
Jeevan Saathi Plus

C# INTRODUCTION TO ICICI PRUDENTIAL

 ICICI Prudential Life Insurance Company is a joint venture between ICICI
Bank - one of India's foremost financial services companies-and Prudential
plc - a leading international financial services group headquartered in the
United Kingdom. Total capital infusion stands at Rs. 47.80 billion, with
ICICI Bank holding a stake of 74% and Prudential plc holding 26%.

We began our operations in December 2000 after receiving approval from

Insurance Regulatory Development Authority (IRDA). Today, our nation-
wide reach includes 1,960 branches (inclusive of 1,096 micro-offices), over
237,000 advisors; and 6 bancassurance partners.

For three years in a row, ICICI Prudential has been voted as India's Most
Trusted Private Life Insurer, by The Economic Times - AC Nielsen ORG
Marg survey of 'Most Trusted Brands'. As we grow our distribution, product
range and customer base, we continue to tirelessly uphold our commitment
to deliver world-class financial solutions to customers all over India.

INSURANCE PLAN OF ICICI PRUDENTIAL

.
ICICI Prudential has a wide array of insurance plans that have been
designed with the philosophy that different individuals are bound to have
differing insurance needs.

The ideal insurance plan is one that addresses the exact insurance needs of
the individual that will depend on the age and life stage of the individual
apart from a host of other factors.

Life Insurance Plans:

 Under Life insurance plans, ICICI Prudential offers plans under the
following major need categories:

• Education Insurance Plans

• Wealth Creation Plans
• Protection Plans

Pension & Retirement Solutions:

The primary objective of a pension plan is to help you provide for your
financial needs in your post retirement years. You will find a Pension
Planning Calculator on the site, meant to make your pension plan review as
simple as possible. The calculator is the first step in your Pension Plan
scheme, there are othe steps towards getting the Indian pension policy you
need.

Click here to know more about our pension plan solutions.

• ICICI Pru LifeTime Pension Maxima

• ICICI Pru LifeStage Pension Advantage
• ICICI Pru Elite Pension II
• ICICI Pru Assure Pension
• ICICI Pru ForeverLife
• ICICI Pru Immediate Annuity

Health Product Suite:

Under Health Product Suite, ICICI Prudential offers plans under the
following major need categories:

Hospitalisation Plans

• MediAssure
• Hospital Care

Critical Illnessl Pans

• Crisis Cover
OBJECTIVE OF THE STUDY

 To study the customer satisfaction regarding LIC & ICICI Prudential

Life Insurance.

 To customer awareness about life insurances plans.

 To study the satisfaction of customer regarding insurance plan that

they taken from their companies.

 To study satisfaction of better facilities of their insurance companies.

 CHAPTER-3
RESEARCH
METHODOLOGY

Research Methodology

Marketing is the backbone of the market. Research in common parlance

refer to a search of knowledge. One can also define research as a scientific
research for pertinent knowledge or information on a specific topic. This is a
systematic and objective identification, collection data, analysis
dissemination and use of information for the purpose of assisting
management in decision making related the identification and solution of
problem in the market.

The main object of my study is to review the consumer satisfaction related to

the brand. Related to marketing strategies of both of the companies, I refer
to the secondary data which I have collected from the various sources like
internet site, news paper , articles and user of market.
And for other objective of my product of my project I have again gone
through secondary data collection. Research based on primary sources such
as dealer or wholesaler and or main source of employee of Shreyans
industries ltd.

Types of Research

The basic types of research are as follows :-

Descriptive: - Descriptive research includes surveys and fact finding

enquires of different kinds. The major purpose of description research is
description at the state of affairs as it exists at present.

Analytical :- In the research has to use fact or information already available

and analyze these to make a critical evaluation of the material.
Applied :- Research either be applied or fundamental research. Applied
research aimed at finding a solution for immediate problems facing a society
or industries or business organization.

Fundamental Research :- It is a research mainly concerned with

generalization and with the formation of the theory. Research concerning
some natural phenomenon or relating to pure mathematics are example of
fundamental research.

Empirical Research :- Empirical research relies on experience or

observation alone often without due regard for system and theory. Empirical
research is appropriate when proof is sought that certain variable in some
way.

Qualitative Research :- Qualitative research is specially important in the

behavioral science where the aim is to discover the underlying motive of
human behavior which make people like or dislike a particular thing.

CHARACTERSTICS OF RESEARCH

 Research is very helpful in enhancing knowledge.

 Research is a systematic study about a particular problem.
 For detail enquiry, information is collected from primary and
secondary sources.
 Different research methods and statistical technique are used to
analysis the data.

RESEARCH DESIGN

Our research design is descriptive. To achieve research objective a

questionnaire was developed. The questionnaire is a structured technique for
data collection that consist of series of question written or verbal that a
respondent answers.

SAMPLING DESIGN

 UNIVERSE:- Insurance companies

 SAMPLING UNIT:- LIC & ICICI Prudential

 SAMPLING SIZE:- 100 Respondent

 SAMPLING DESIGN:- Respondent are selected randomly.

SURVEY STRATEGY

In this project, personal interview method was adopted for data collection. I
used to personally visit the office of insurance companies. This method was
supposed to be most appropriate as:

 There is low cost even when the universe is large and widely spread
geographically.
 Less chance of ambiguity in the information required.
 Clarification can be made on the spot.
 Chances of misinterpretations are less.
 Large sample can be made use of and result can be made more
reliable.

COLLECTION OF DATA

 PRIMARY DATA:- The respondent were personally visited and

interviewed and the data was collected with help of a questionnaire.
The questionnaire was so designed so as to contain appropriate
number of question and to satisfy or research objective. The
questionnaire contained both open-ended and closed-ended questions.
Special care was taken to ensure that question were simple.

 SECONDARY DATA:- the secondary data was collected from

magazine, records and manuals of the insurances companies.

DATA ANALYSIS
I have made analysis with the help of percentage method and used graph and
doughnut charts to display the result of survey.

CHAPTER-4
ANALYSIS
&
INTERPRETATIO
N
 Analysis and Interpretation

1. What is your occupation?

• Government Employ
• Private Employ
• Self Business
• Others
Interpretation: There are 40% self Business, 30% private employ, 20%
government employ & 10% are in other categories. Ot
1

2. What is your current annual income?

•
•
Below 50000
50000 to 150000
Self Business
• 150000 to 300000 40%
• Above 300000
Interpretation: On doing survey there are about 45% respondent are whose
income is b/w 50,000 to 150,000 typically belong to below middle families.
Above 30
10%

3. Are you filling annual income tax return?

• Yes
• No 150,000 to 300,000
30%
Interpretation: On doing survey 65% respondents are filling income tax return
annually. No
35%

4. Do you know about insurance?

• Yes
• No
 80

70

60

50 : 75% respondent are know about the Insurance.

Interpretation
Respondents

5. Which scheme you choose to save your income tax?

• 40
Post office scheme
• Insurance scheme
• Other scheme

30
 Othe

Interpretation: 54% respondent are interested in insurance & 40% are

interested in post office scheme.

6. Have you any life insurance plan ?

• Yes
• No

Insurance Scheme
54%
 No
Interpretation: 62% respondent have insurance plan of different38%
insurance companies.

7. From which insurance company you have taken the plan?

• LIC of India
• ICICI Prudential
• Bajaj Alliance
• HDFC Standard Life
 Interpretation: 42% of respondent had taken from LIC & 20% had taken
from ICICI & 28% respondent taken from both companies.
Both LIC & ICICI PRU
28%

8. To whom you take the insurance plan in your family?

Bajaj Alliance
•
•
Self
Spouse
10%
• Children I
• Parents
 Pa
Interpretation: 47% respondent who are earner of family taken the
insurance & 30% for their children’s 13% for their spouse & 10% for their
parents.

9. Why are you trusted in LIC?

• Government
Children
• Low Premium 30%
 • Low Risk
• Better Facilities

No Extr
1

Low Rick
10%

Interpretation: 65% respondent are interested LIC due to Govt. Sector.

10. Why are you trusted in ICICI Prudential?

Low Premimum
• Better Facilities
• Growing Sector 15%
 • High Income Return
• Low Risk

Low
8

High Income Return

10%

Interpretation: 52% respondent are interested in ICICI due to they

provide better facilites.

11. Why are you not choosing plan from LIC?

• Poor Services
 • Less Plans
• Poor Infrastructure
• Less Income Return

Less Income Return

14%

12. Why are you not choosing plan from ICICI PRU.?
Poor Infrastructure
32%
 • High Premium
• Private Sector
• Extra charges
• Money Risk

Mon
1

Extra Charges
28%
13.From where you know about the plans of LIC & ICICI ?
 • Insurance Agents
• Friends
• Media

Media
20%

Friends
12%
14. Are you satisfied with plans & services of LIC?
 • Yes
• No

No
22%

15. Are you satisfied with plans & services of ICICI Prudential?
• Yes
• No

No
43%