Internship

A INTEGRATED BUSINESS PLAN ON “INSURANCE INDUSTRY “
Project submitted to the
METAS ADVENTIST COLLEGE
Accredited by NAAC ‘B’
Athwalines, Surat
In partial fulfillment of the requirements for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
UJJAWAL AGARWAL
Under the Guidance of
VINEETA CHOPRA
Assistant Professor
Department of Management
THE NORTH EASTERN HILL UNIVERSITY (NEHU)
SHILLONG, MEGHALAYA
JANUARY – 2021
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DECLARATION
I, UJJAWAL AGARWAL, ID No. GA-001 hereby declare that the Entrepreneurship

project entitled “A INTEGRATED BUSINESS PLAN ON "LIFE INSURANCE COMPANY
”, submitted to the METAS ADVENTIST COLLEGE, in partial fulfillment of the
curriculum of MASTER OF BUSINESS ADMINISTRATION is a record of original project
work done by me during the period from January 27, 2021 to February 23,2021 under
the supervision and guidance of VINEETA CHOPRA , Assistant Professor, Department
of Management, METAS Adventist College and is not reproduced from any existing
work of any other person or on any earlier work undertaken at any other time or for any
other purpose, and has not been submitted anywhere else at any time.
Place: Surat
Date:
UJJAWAL AGARWAL
(GA001)
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ACKNOWLEDGEMENT
If the words are considered as symbols of approval and token of acknowledgement

then let them play the heralding role of expressing my gratitude to all those who have
helped me directly or indirectly during this project.
I wish to place on record my deepest sense of gratitude to our beloved President &
CEO Dr. Srikakolli Eliah, and our respectful Vice-President Mr.N. Mohan Rao, METAS
Adventist College, Athwalines, Surat for giving me a golden opportunity to undergo a
real time Entrepreneurship project.
I express my sincere gratitude to Vineeta Chopra Project guide, Department of

Management, METAS Adventist College, Athwalines, Surat and my department staff
members for their support, valuable suggestions and guidance throughout the project
work.
I extremely appreciate the love, support, understanding and sustaining

encouragement of my Parents and Friends who helped me throughout the process
and preparation of this Entrepreneurship project report.
UJJAWAL AGARWAL
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INSURANCE PROFILE
INSURANCE INDUSTRY
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Insurance in India refers to the market for insurance in India which covers both the
public and private sector organisations. It is listed in the Constitution of India in the
Seventh Schedule as a Union List subject, meaning it can only be legislated by
the Central Government only.
The insurance sector has gone through a number of phases by allowing private
companies to solicit insurance and also allowing foreign direct investment. India allowed
private companies in insurance sector in 2000, setting a limit on FDI to 26%, which was
increased to 49% in 2014.[1] Since the privatisation in 2001, the largest life-insurance
company in India, Life Insurance Corporation of India has seen its market share slowly
slipping to private giants like HDFC Life, ICICI Prudential Life Insurance and SBI Life
Insurance Company.
History
 Insurance in this current form has its history dating back to 1818, when Oriental
Life Insurance Company was started by Anita Bhavsar in Kolkata to cater to the
needs of European community. The pre-independence era in India saw
discrimination between the lives of foreigners (English) and Indians with higher
premiums being charged for the latter. In 1870, Bombay Mutual Life Assurance
Society became the first Indian insurer.
 At the dawn of the twentieth century, many insurance companies were founded.
In the year 1912, the Life Insurance Companies Act and the Provident Fund Act
were passed to regulate the insurance business. 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. However, the disparity
still existed as discrimination between Indian and foreign companies. The oldest
existing insurance company in India is the National Insurance Company, which
was founded in 1906, and is still in business.
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 The Government of India issued an Ordinance on 19 January 1956 nationalising
the Life Insurance sector and Life Insurance Corporation came into existence in
the same year. The Life Insurance Corporation (LIC) absorbed 154 Indian, 16
non-Indian insurers and also 75 provident societies—245 Indian and foreign
insurers in all. In 1972 with the General Insurance Business (Nationalisation) Act
was passed by the Indian Parliament, and consequently, General Insurance
business was nationalized with effect from 1 January 1973. 107 insurers were
amalgamated and grouped into four companies, namely National Insurance
Company Ltd., the New India Assurance Company Ltd., the Oriental Insurance
Company Ltd and the United India Insurance Company Ltd. The General
Insurance Corporation of India was incorporated as a company in 1971 and it
commenced business on 1 January 1973.
 The LIC had monopoly till the late 90s when the Insurance sector was reopened
to the private sector. But, now there are 23 private life insurance companies in
India. Before that, the industry consisted of only two state insurers: Life Insurers
(Life Insurance Corporation of India, LIC) and General Insurers (General
Insurance Corporation of India, GIC). GIC had four subsidiary companies. With
effect from December 2000, these subsidiaries have been de-linked from the
parent company and were set up as independent insurance companies: Oriental
Insurance Company Limited, New India Assurance Company Limited, National
Insurance Company Limited and United India Insurance Company.
Industry Structure
 By 2012 Indian Insurance is a US$72 billion industry. However, only two million
people (0.2% of the total population of 1 billion) are covered under Mediclaim.
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With more and more private companies in the sector, this situation is expected to
change. ECGC, ESIC and AIC provide insurance services for niche markets. So,
their scope is limited by legislation but enjoy some special powers. The majority
of Western Countries have state run medical systems so have less need for
medical insurance. In the UK, for example, the corporate cover of employees,
when added to the individual purchase of coverage gives approximately 11–12%
of the population on cover - due largely to usage of the state financed National
Health Service (NHS), whereas in developed nations with a more limited state
system, like USA, about 75% of the total population are covered under some
insurance scheme.
Insurance repository
On 16 September 2013, IRDA launched "insurance repository" services in India. It is a

unique concept and first to be introduced in India. This system enables policy holders to
buy and keep insurance policies in dematerialised or electronic form. Policyholders can
hold all their insurance policies in an electronic format in a single account called
electronic insurance account. Insurance Regulatory and Development Authority of India
has issued licences to four entities to act as Insurance Repository:
 CDSL Insurance Repository Limited

 Karvy Insurance repository Limited
 NSDL Database Management Limited
 CAMS Repository Services Limited
Legal structure
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 The insurance sector went through a full circle of phases from being unregulated to
completely regulated and then currently being partly deregulated. It is governed by a number
of acts.
 The Insurance Act of 1938[5] was the first legislation governing all forms of insurance to
provide strict state control over insurance business. Life insurance in India was completely
nationalised on 19 January 1956, through the Life Insurance Corporation Act. All 245
insurance companies operating then in the country were merged into one entity, the Life
Insurance Corporation of India.
 The General Insurance Business Act of 1972 was enacted to nationalise about 107 general
insurance companies then and subsequently merging them into four companies. All the
companies were amalgamated into National Insurance, New India Assurance, Oriental
Insurance and United India Insurance, which were headquartered in each of the four
metropolitan cities. Until 1999, there were no private insurance companies in India. The
government then introduced the Insurance Regulatory and Development Authority Act in
1999, thereby de-regulating the insurance sector and allowing private companies.
Furthermore, foreign investment was also allowed and capped at 26% holding in the Indian
insurance companies.
 In 2006, the Actuaries Act was passed by parliament to give the profession statutory status
on par with Chartered Accountants, Notaries, Cost & Works Accountants, Advocates,
Architects and Company Secretaries. A minimum capital of US$80 million(Rs. 4 billion) is
required by legislation to set up an insurance business.
Authorities
 The primary regulator for insurance in India is the Insurance Regulatory and
Development Authority of India (IRDAI) which was established in 1999 under the
government legislation called the Insurance Regulatory and Development
Authority Act, 1999.
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 The industry recognises examinations conducted by the IAI (for 280 actuaries), III
(for 2.2 million retail agents, 361 brokers, 175 bancassurers, 125 corporate
agents and 29 third-party administrators) and IIISLA (for 8,200 surveyors and
loss assessors). There are 9 licensed web aggregators. TAC is the sole data
repository for the non-life industry. IBAI gives voice to brokers while GI Council
and LI Council are platforms for insurers. AIGIEA, AIIEA, AIIEF, AILICEF,
AILIEA, FLICOA, GIEAIA, GIEU and NFIFWI cater to the employees of the
insurers. In addition, there are a dozen Ombudsman offices to address client
grievances.
Insurance education
A number of institutions provide specialist education for the insurance industry, these include;
 National Insurance Academy, Pune, specialized in teaching, conducting research and providing
consulting services in the insurance sector. NIA offers a two-year PGDM programme in
insurance. NIA was founded as Ministry of Finance initiative with capital support from the then
public insurance companies, both Life (LIC) and Non-Life (GIC, National, Oriental, United & New
India).
 Institute of Insurance and Risk Management, Hyderabad, was established by the

regulator IRDA. The institute offers Postgraduate diploma in Life, General
Insurance, Risk Management and Actuarial Sciences. The institute is a global
learning and research centre in insurance, risk management, actuarial sciences.
They provide consulting services for the financial industry.
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 Amity School of Insurance Banking and Actuarial science (ASIBAS) of Amity
University, Noida and established in 2000, offers MBA programmes in Insurance,
Insurance and Banking, and MSc/BSc actuarial sciences to a Post Graduate
Diploma in Actuarial Sciences.
 Pondicherry University offers an MBA in insurance management. Pondicherry

University is the only central university which offers insurance management in India.
 BIMT is a graduate business school located in Greater Noida, established in 1988,

offers a PGDM-IBM programme in insurance business management. This
programme was launched in 2000 by the Centre for Insurance and Risk
Management and is accredited by the Insurance Regulatory and Development
Authority. Life Office Management Association (LOMA), USA is BIMTECH's
educational partner and BIMTECH is an approved centre for LOMA examination.
The Chartered Insurance Institute (CII), UK has accorded recognition (by way of
credits) to the BIMTECH PGDM-IBM programme. Their two-year PGDM programme
in insurance business has been recognised as equivalent to the Associate level of
the Insurance Institute of India, Mumbai.
 National Law University, Jodhpur offers a two-year MBA and one year MS (for
engineering graduates) programme in insurance.
 To become an insurance advisor in India, Insurance Act, 1938 mandates that the
individual has to be "a Major with sound mind". After the advent of IRDA as
insurance regulator, it has framed various regulations, viz. training hours,
examination and fees which are amended from time to time. Since November 2011
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IRDA has introduced a syllabus (IC-33) conceived and developed by CII, London.
The syllabus mainly aims to make an Insurance Agent a financial professional.
 The insurance sector is made up of companies that offer risk management in the
form of insurance contracts. The basic concept of insurance is that one party, the
insurer, will guarantee payment for an uncertain future event. Meanwhile, another
party, the insured or the policyholder, pays a smaller premium to the insurer in
exchange for that protection on that uncertain future occurrence.
 As an industry, insurance is regarded as a slow-growing, safe sector for investors.

This perception is not as strong as it was in the 1970s and 1980s, but it is still
generally true when compared to other financial sectors.
Types of Insurance Companies
 Not all insurance companies offer the same products or cater to the same
customer base. Among the largest categories of insurance companies are
accident and health insurers; property and casualty insurers; and financial
guarantors. The most common types of personal insurance policies are auto,
health, homeowners, and life. Most individuals in the United States have at least
one of these types of insurance, and car insurance is required by law.
 Accident and health companies are probably the most well-known. These include
companies such as UnitedHealth Group, Anthem, Aetna and AFLAC, which are
designed to help people who have been physically harmed.
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 Life insurance companies mainly issue policies that pay a death benefit as a
lump sum upon the death of the insured to their beneficiaries. Life insurance
policies may be sold as term life, which is less expensive and expires at the
end of the term or permanent (typically whole life or universal life), which is
more expensive but lasts a lifetime and carries a cash accumulation
component. Life insurers may also sell long-term disability policies that replace
the insured's income if they become sick or disabled. Well-known life insurers
include Northwestern Mutual, Guardian, Prudential, and William Penn.
 Property and casualty companies insure against accidents of non-physical

harm. This can include lawsuits, damage to personal assets, car crashes and
more. Large property and casualty insurers include State Farm, Nationwide
and Allstate.
 Businesses require special types of insurance policies that insure against

specific types of risks faced by a particular business. For example, a fast-food
restaurant needs a policy that covers damage or injury that occurs as a result
of cooking with a deep fryer. An auto dealer is not subject to this type of risk but
does require coverage for damage or injury that could occur during test drives.
 There are also insurance policies available for very specific needs, such as
kidnap and ransom (K&R), medical malpractice, and professional liability
insurance, also known as errors and omissions insurance.
 Some companies engage in reinsurance to reduce risk. Reinsurance is

insurance that insurance companies buy to protect themselves from excessive
losses due to high exposure. Reinsurance is an integral component of
insurance companies' efforts to keep themselves solvent and to avoid default
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due to payouts, and regulators mandate it for companies of a certain size and
type.
 For example, an insurance company may write too much hurricane insurance,
based on models that show low chances of a hurricane inflicting a geographic
area. If the inconceivable did happen with a hurricane hitting that region,
considerable losses for the insurance company could ensue. Without
reinsurance taking some of the risks off the table, insurance companies could
go out of business whenever a natural disaster hits.
PEST ANALYSIS AFFECTING INSURANCE INDUSTRY
POLITICAL FACTORS
 Political factors are represented by the influence of a political entity (party,

country,organizations or other type of faction) on the national level, regional level
or international level.Insurance companies might to consider offering political risk
coverage as well.
i. Prohibition for investmentThe prohibition to invest direct and indirectly
affects the insurance industry to grow and develop.
ii. ii. Insurance business in rural/ social sectorAll insurers are required to
undertake such percentage of their insurance business,
includinginsurance for crops, in the rural social sector. They should
discharge their obligation to providelife insurance policies to person
residing in the rural sector, workers in the unorganized sector orto
economically vulnerable classes of society and their categories of
person as specified by authority.
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iii. Capital Requirement the paid up equity of an insurance company
applying for registration to carry on life insurancebusiness should be
according to the standard fixed by the government and authority.
ECONOMICAL FACTORS
 Interest rate at bank and interest rate of P.F variation very much affect to life
insurance industry, because people always attract by higher return. Therefore
they do not prefer lower return policy.
 Unemployment also affects insurance industry, because the unemployment

people will not haveearning, so saving also affect to life insurance sector. Life
insurance industry will directly beaffected by natural disaster such as
Earthquake, Monsoon and Natural Calamity.
 Since this eventmight turn into lots of death, life insurance need to pay claims
against policy. Infant mortalityrate and maternity mortality rate also affecting to
life insurance.
i. Adequacy of capital:-
 Capital adequacy is matter of attention in view of the nature of the life insurance
business, wherein the case of contingency arises, the insurer should be in a
position to meet its long-termcontractual obligations and pay up the dues or
claims. In that sense, life insurance is a capital-intensive business and must be
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backed by an adequate capital base on the part of the owners andthe companies
should not be running their business purely on other people’s money.
ii. Increased Economical Activity.
 The increase in the growth rate in various sectors accompanies by the growth in
trade in thecontext of fulfilling of commitments to the signal of growth in the
demand for insurance coversof new type.
Mutual vs. Stock Insurance Companies
 Insurance companies are classified as either stock or mutual depending on the

ownership structure of the organization. There are also some exceptions, such
as Blue Cross Blue Shield and fraternal groups which have yet a different
structure. Still, stock and mutual companies are by far the most prevalent ways
that insurance companies organize themselves.
 Worldwide, mutual insurance companies accounted for 26.7% of the market

share in 2017. In the U.S., 39.9% of the market belonged to mutual insurers.
 A stock insurance company is a corporation owned by its stockholders or

shareholders, and its objective is to make a profit for them. Policyholders do
not directly share in the profits or losses of the company. To operate as a stock
corporation, an insurer must have a minimum of capital and surplus on hand
before receiving approval from state regulators. Other requirements must also
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be met if the company's shares are publicly traded. Some well-known American
stock insurers include Allstate, MetLife, and Prudential.
 A mutual insurance company is a corporation owned exclusively by the

policyholders who are "contractual creditors" with a right to vote on the board of
directors. Generally, companies are managed and assets (insurance reserves,
surplus, contingency funds, dividends) are held for the benefit and protection of
the policyholders and their beneficiaries.
 Management and the board of directors determine what amount of operating

income is paid out each year as a dividend to the policyholders. While not
guaranteed, there are companies that have paid a dividend every year, even in
difficult economic times. Large mutual insurers in the U.S. include
Northwestern Mutual, Guardian, Penn Mutual, and Mutual of Omaha.
What Is Insurance Float?
 One of the more interesting features of insurance companies is that they are
essentially allowed to use their customers' money to invest for themselves. This
makes them similar to banks, but investing happens to an even greater extent.
This is sometimes referred to as "the float."
 Float occurs when one party extends money to another party and does not
expect repayment until after a circumstantial event. This mechanism essentially
means insurance companies have a positive cost of capital. This distinguishes
them from private equity funds, banks, and mutual funds. For investors in stock
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insurance companies (or policyholders in mutual companies), this means the
potential for lower-risk, stable returns.
Insurance and Selling Financial Products
 Insurance plans are the principal product of the sector. However, recent
decades have brought a number of corporate pension plans to businesses and
annuities to retirees.
 This places insurance companies in direct competition with other financial

asset providers on these types of products. Indeed, many insurance agents are
now branded as full-service financial advisors offering both protection products
as well as investments, financial planning, and retirement planning. Many
insurance companies now have their own broker-dealer either in-house or in
partnership.
List of Life Insurance Companies in India
Company name
Life Insurance Corporation of India
Max Life Insurance Co. Ltd.
HDFC Life Insurance Co. Ltd.
ICICI Prudential Life Insurance Co. Ltd.
Aditya Birla SunLife Insurance Co. Ltd.
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Kotak Mahindra Life Insurance Co. Ltd.
Pramerica Life Insurance Co. Ltd.
TATA AIA Life Insurance Co. Ltd.
Bajaj Allianz Life Insurance Co. Ltd.
SBI Life Insurance Co. Ltd.
Exide Life Insurance Co. Ltd.
Reliance Nippon Life Insurance Company
Sahara India Life Insurance Co. Ltd.
Aviva Life Insurance Company India Ltd.
PNB MetLife India Insurance Co. Ltd
Bharti AXA Life Insurance Company Ltd.
IDBI Federal Life Insurance Company Limited
Future Generali India Life Insurance Company Limited
Shriram Life Insurance Co. Ltd.
Aegon Life Insurance Company Limited.
Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited.
Edelweiss Tokio Life Insurance Company Limited
Star Union Dai-Ichi Life Insurance Co. Ltd.
IndiaFirst Life Insurance Company Ltd.
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List of General Insurance Companies in India
Company name
National Insurance Co. Ltd.
Go Digit General Insurance Ltd.
Bajaj Allianz General Insurance Co. Ltd.
Cholamandalam MS General Insurance Co. Ltd.
Bharti AXA General Insurance Co. Ltd.
HDFC ERGO General Insurance Co. Ltd.
Future Generali India Insurance Co. Ltd.
The New India Assurance Co. Ltd.
Iffco Tokio General Insurance Co. Ltd.
Reliance General Insurance Co. Ltd.
Royal Sundaram General Insurance Co. Ltd.
The Oriental Insurance Co.
Tata AIG General Insurance Co. Ltd.
SBI General Insurance Co. Ltd.
Acko General Insurance Ltd.
Navi General Insurance Ltd.
Edelweiss General Insurance Co. Ltd.
ICICI Lombard General Insurance Co. Ltd.
Kotak Mahindra General Insurance Co. Ltd.
Liberty General Insurance Ltd.
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Magma HDI General Insurance Co. Ltd.
Raheja QBE General Insurance Co. Ltd.
Shriram General Insurance Co. Ltd.
United India Insurance Co. Ltd.
Universal Sompo General Insurance Co. Ltd.
Agriculture Insurance Company of India Ltd.
Aditya Birla Health Insurance Co. Ltd.
Manipal Cigna Health Insurance Company Limited
ECGC Ltd.
Max Bupa Health Insurance Co. Ltd
Care Health Insurance Ltd
Star Health & Allied Insurance Co. Ltd.
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COMPANY PROFILE
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Life Insurance Corporation of India
HISTORY
Founding organisations
The Oriental Life Insurance Company, the first company in India offering life insurance
coverage, was established in Kolkata in 1818. Its primary target market was the
Europeans based in India, and it charged Indians heftier premiums. Surendranath
Tagore had founded Hindustan Insurance Society, which later became Life Insurance
Corporation.
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
 Postal Life Insurance (PLI): It was introduced on 1st February 1884 with
the express approval of the Secretary of State (for India) to Her Majesty, the
Queen Empress of India. It was essentially a scheme of State Insurance mooted
by the then Director General of Post Offices, Mr. F.R. Hogg in 1881 as a welfare
scheme for the benefit of Postal employees and later extended to the employees
of Telegraph department in 1888. In 1894, PLI extended insurance cover to
female employees of P & T Department at a time when no other insurance
company covered female lives. It is the oldest Life insurer in this country.
 In the beginning, the upper limit of life insurance was only ₹ 4000/- which has
now increased to ₹ 50 lacs (Rupees Fifty Lacs) and it will be effective as and
when notified through a Gazette notification for all schemes combined -
Endowment Assurance and Whole Life Assurance. Over the years, PLI has
grown substantially from a few hundred policies in 1884 to more than 46 Lacs
policies as on 31.03.2017.
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 It now covers employees of Central and State Governments, Central and
State Public Sector Undertakings, Universities, Government aided
Educational institutions, Nationalized Banks, Local bodies, autonomous
bodies, joint ventures having a minimum of 10% Govt./PSU stake, credit
cooperative societies etc. PLI also extends the facility of insurance to the
officers and staff of the Defence services and Paramilitary forces. Apart from
single insurance policies, Postal Life Insurance also manages a Group
Insurance scheme for the Extra Departmental Employees (Gramin Dak
Sevaks) of the Department of Posts.
 Bharat Insurance Company:

 United India: United India Insurance Company is a leading general
insurance company, wholly owned by the Government of India and is headquartered
in Chennai, India. It was incorporated on 18 February 1938, and nationalized in
1972.
 Previously it was a subsidiary of the General Insurance Corporation of

India (GIC). But when GIC became a re-insurance company as per the IRDA Act
1999, its four primary insurance subsidiaries New India Assurance, United India
Insurance, Oriental Insurance and National Insurance got autonomy, with effect
from March 21, 2003.
 Twelve Indian insurance companies, four co-operative insurance societies, five

foreign insurers with Indian operations and the general insurance operations of
the southern region of Life Insurance Corporation of India were merged with
United India Insurance Company Limited to form the company.
 After nationalization, United India has 14,322 number of workforce spread across
2,248 offices providing insurance cover to more than 10 million policy holders.
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The Company has a variety of insurance products to provide insurance cover
from bullock carts to satellites.
 National Insurance (1906): After nationalisation in 1972, NICL operated as a

subsidiary of General Insurance Corporation of India (GIC). National Insurance
Company Limited was spun off as a distinct company under the General Insurance
Business (Nationalisation) Amendment Act in 2002. In April 2004, NIC signed an
agreement with Nainital Bank for distribution of its general insurance products
through the bank's branches in Uttarakhand, Haryana and New Delhi.
ABOUT
 National Insurance Company Limited was incorporated on 5 December 1906 with

its registered office in Kolkata. Consequent to passing of the General Insurance
Business Nationalisation Act in 1972, 21 Foreign and 11 Indian Companies were
merged with it and National became a subsidiary of General Insurance
Corporation of India (GIC) which is fully owned by the Government of India. After
the notification of the General Insurance Business and its India's largest General
Insurance Company(Nationalisation) Amendment Act, on 7 August 2002,
National has been de-linked from its holding company GIC and presently
operates as an independent insurance company wholly owned by Govt of India.
National Insurance Company Ltd (NIC) is one of the public sector insurance
companies of India.
 It transacts a non-life insurance business. Headquartered in Kolkata, NIC's

network of about 2000 offices is spread over the country. NIC's foreign
operations are carried out from its branch offices in Nepal. The paid-up share
capital of National is ₹1 billion. Starting off with a premium base of ₹50 crores in
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1974, NIC's gross direct premium income has steadily grown to
about ₹160 billion rupees in the financial year 2017–18.
 National transacts general insurance business of Fire, Marine and Miscellaneous

insurance. As of 2010, NICL has a AAA rating from Indian rating agency, CRISIL,
a subsidiary of Standard and Poor's Company. The gross premiums from
underwriting by the company grew by 32.22% to over ₹61 billion during
the Financial Year 2010–2011. And Gross Premium grew up to 100 billion during
the financial year 2013–2014.
 With this, the company was ranked second among general insurance companies
operating in India, behind New India Assurance, at the end of the 2014 Financial
Year. With about 2000 offices and approximately 11,000 employees and many
more agents, the company operates in all of India, and neighbouring Nepal. In
2008, the company signed a deal with HCL Technologies worth almost ₹4 billion
to outsource the company's information technology requirements over 7
years. On the 2nd of February 2018, the Government of India announced the
merger of National Insurance Company Limited with United India Insurance
Company and Oriental Insurance.
 Co-operative Assurance (1906): Co-op Insurance is the trading name of

CIS General Insurance, a general insurance company, which is part of the Co-
operative Group, based in Manchester, United Kingdom. Co-op Insurance
Services, an insurance intermediary incorporated in 2017, is a wholly owned
subsidiary of CIS General Insurance.
 For most of its history, Co-op Insurance was also a life insurer and fund
manager, sharing surpluses with holders of its 'with-profits' life policies, as well as
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with individual members of The Co-operative Group in proportion to their general
insurance patronage. In 2013, Royal London Group agreed to buy the life
insurance business unit for an estimated £219 million.
HISTROY
 The Co-operative Insurance Company Limited was formed in 1867 to provide fire
and fidelity guarantee insurance to co-operative societies. In 1886, at an Annual
General Meeting it was resolved "...that Life Assurance be undertaken by the
Company, and that the shareholders forfeit any rights they may have to the
profits of the Life Department and agree that they shall belong exclusively to the
Policyholders." In 1899, industrial life business was also introduced and the
company was converted into an industrial and provident society, changing its
name to Co-operative Insurance Society Limited (CIS). Other classes of business
were provided for the general public and not just for co-operative societies and
their members.
 The shares of the Society were taken over by the Co-operative Wholesale
Society and the Scottish Co-operative Wholesale Society in 1913. In 1973, the
Scottish Co-operative Wholesale Society merged with CWS. CWS became The
Co-operative Group on merger with Co-operative Retail Services in 2000.
 In 2002, Co-operative Financial Services was created as a holding company for

both CIS and The Co-operative Bank including Smile, the first full internet bank
and, in 2008, The Co-operative Insurance and The Co-operative
Investments trading names were introduced. In 2011, Co-operative Financial
Services became the Co-operative Banking Group.
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 In 2006, CIS split its life and general insurance businesses into two separate
entities, establishing CIS General Insurance Limited within which all new and
renewing insurance business was written. All existing CIS general insurance
business was reinsured with CISGIL and CIS continued to write long-term
savings and insurance business only. CFS Management Services Limited was
created at the same time to provide common support services to both CIS and
CISGIL. In 2011, after 125 years, The Co-operative Insurance announced that it
would cease providing life assurance products.
 In January 2019, Markerstudy Group and the Co-operative Group announced

their intention to merge their respective insurance businesses. As part of the
agreement, and subject to regulatory approval, Markerstudy Group will pay £185
million to the Co-operative Group and enter into a new 13 year relationship
agreement with the Co-operative Group to sell insurance products to their
members.
 The Society's head office on Miller Street in Manchester city centre was, at the
time of completion in 1962, the tallest building in Europe, standing at 387 feet
(118 m). Since the opening of the Beetham Tower in 2006, it is now the second
tallest building in Manchester. In 2006, the CIS Tower was clad in solar panels,
becoming Europe's largest vertical solar array.
 The Co-op Insurance has a tradition of football sponsorship. It has previously

sponsored the Scottish League Cup in Scotland and the Irish League
Cup in Northern Ireland.
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 Hindustan Co-operatives (1907)
 Swadeshi Life (later Bombay Life) : It is a Non-govt company, incorporated on

11 Oct, 2006. It's a public unlisted company and is classified as'company limited by shares'.
 Company's authorized capital stands at Rs 200.0 lakhs and has 7.500000 5% paid-up capital
which is Rs 15.0 lakhs. Swadeshi Life Assurance Limited last annual general meet (AGM)
happened on 30 Sep, 2013. The company last updated its financials on 31 Mar, 2013 as per
Ministry of Corporate Affairs (MCA).
 Swadeshi Life Assurance Limited is majorly in Insurance business from last 15 years and
currently, company operations are strike off.
 Company is registered in Mumbai (Maharashtra) Registrar Office. Swadeshi Life Assurance

Limited registered address is 22 A Miniland Tank Road Bhandup (W) Mumbai MH 400078
IN.
 Sahyadri Insurance (Merged into LIC, 1986)
 The first 150 years were marked mostly by turbulent economic conditions. It
witnessed India's First War of Independence, adverse effects of the World War
I and World War II on the economy of India, and in between them the period of
worldwide economic crises triggered by the Great depression. The first half of the 20th
century saw a heightened struggle for India's independence. The aggregate effect of
these events led to a high rate of and liquidation of life insurance companies in India.
This had adversely affected the faith of the general in the utility of obtaining life cover.
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Nationalization in 1956
LIC Zonal Office, at Connaught Place, New Delhi, designed by Charles Correa, 1991.
LIC Building at Chennai, was the tallest building in India when it was inaugurated in
1959
 In 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by

owners of private insurance agencies. In the ensuing investigations, one of
India's wealthiest businessmen, Ramkrishna Dalmia, owner of the Times of
India newspaper, was sent to prison for two years.
 The Parliament of India passed the Life Insurance of India Act on 19 June 1956
creating the Life Insurance Corporation of India, which started operating in
September of that year. It consolidated the business of 245 private life insurers
and other entities offering life insurance services; this consisted of 154 life
insurance companies, 16 foreign companies and 75 provident companies. The
nationalization of the life insurance business in India was a result of the Industrial
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Policy Resolution of 1956, which had created a policy framework for extending
state control over at least 17 sectors of the economy, including life insurance.
Structure
 The LIC's executive board consists of Chairman, currently M R Kumar, and

Managing Directors, Vipin Anand, T. C. Suseel Kumar, Mukesh Kumar Gupta
and Raj Kumar.
 The Central Office of LIC is based out of Mumbai which sits The Chairman, all
four Managing Directors, and all Executive Directors (Department Heads). LIC
has a total of 8 Zonal Offices namely Delhi, Mumbai, Hyderabad, Chennai,
Kanpur, Kolkata, Bhopal & Patna.
LIC’s contribution to five year plan over a year
Plan Year Investment
2 1956-1961 ₹184 Cr
3 1961-1966 ₹285 Cr
4 1969-1974 ₹1,530 Cr
5 1974-1979 ₹2,942 Cr
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6 1980-1985 ₹7,140 Cr
7 1985-1990 ₹12,969 Cr
8 1992-1997 ₹56,097 Cr
9 1997-2002 ₹1,70,929 Cr
10 2002-2007 ₹3,94,779 Cr
11 2007-2012 ₹7,04,720 Cr
12 2012-2017 ₹14,23,055 Cr
13 2017-2022 ₹28,01,483 Cr
Growth as a monopoly
From its creation, the Life Insurance Corporation of India, which commanded
a monopoly of soliciting and selling life insurance in India, created huge surpluses and
by 2006 was contributing around 7% of India's GDP.
The corporation, which started its business with around 300 offices, 5.7 million policies
and a corpus of ₹45.9 crores (US$92 million as per the 1959 exchange rate of
roughly ₹5 for US$1), had grown to 25,000 servicing around 350 million policies and
a corpus of over ₹800,000 crore (US$110 billion) by the end of the 20th century.
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Liberalisation post 2000s
In August 2000, the Indian Government embarked on a program to liberalise the

insurance sector and opened it up for the private sector. LIC emerged as a beneficiary
from this process with robust performance, albeit on a base substantially higher than the
private sector.
In 2013, the first year premium compound annual growth rate (CAGR) was 24.53%
while total life premium CAGR was 19.28% matching the growth of the life insurance
industry and outperforming general economic growth.
Operations
 Today LIC functions with 2048 fully computerized branch offices, 8 zonal offices,
around 113 divisional offices, 2,048 branches and 1408 satellite offices and the
Central Office; it also has 73 customer zones and 25 metro-area service hubs
located in different cities and towns of India. It also has a network of 1,537,064
individual agents, 342 Corporate Agents, 109 Referral Agents, 114 Brokers and
42 Banks for soliciting life insurance business from the public.
 The LIC has 22 departments each headed by an Executive Director namely

Marketing, Bank assurance (B&AC), Corporate Communication, Personnel,
CRM, Direct Marketing, E&OS, F&A, IT/BPR, Inspection, Investment,
SBU/Estates, Investment Operations, P&GS, Actuarial, Chairman Sector, F&A,
Micro Insurance, RTI, HRD, Engineering, and Vigilance.
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 The LIC has 8 Zonal Offices headed by a Zonal Manager(I/C) (Executive Director
Cadre) who is one of the key decision-makers of the corporation after the Board
of director.
North Zone New Delhi
Central Zone Bhopal
East Zone Kolkata
West Zone Mumbai
South Zone Chennai
East Central Zone Patna
North Central Zone Kanpur
South Central Zone Hyderabad
 The LIC follows a horizontal line of command & vertical line of command, while
each department is headed by an Executive Director, the Zonal offices are
headed by a Zonal Manager who oversees all the departments & divisions of the
Zone - Making him De-facto CEO of the Zone. The zonal departmental heads are
Regional Managers.
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 Divisions are headed by Sr. Divisional Manager (I/C) who oversees all the
departments & branches of the division. There are 3 layers of Horizontal
Management namely Senior Divisional Manager (I/C), Zonal Manager(I/C) & the
Chairman/MD. There are also 3 layers of vertical management namely Managers
of Divisions, Regional Managers of Zonal Office & the Executive Directors of
Central office. Horizontal Management is considered key managers of the
corporation.
SWOT analysis of LIC
 Life Insurance Corporation of India or LIC as it is popularly known as a

government-owned insurance and Investment Company. With headquarters in
Mumbai, LIC is credited with being the largest insurance provider in India with the
value of an approximate asset to the tune of 240 billion USD. The total life fund of
LIC is estimated at143 billion USD and the company still continues to sell policies
worth millions yearly.
 Following the acceptance of the Life Insurance of India Act in 1965 the
government of India decided to float their own company for Life Insurance which
resulted in the formation of LIC of India. This move also resulted in the
nationalization of the insurance sector in India, prior to when it was a bunch of
private companies. More than 240 private insurance companies and provident
societies merged to form the Life Insurance Corporation.
Strengths in the SWOT analysis of LIC:
Strengths are defined as what each business does best in its gamut of operations which
can give it an upper hand over its competitors. The following are the strengths of LIC
are:
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 India’s largest Insurance service provider: LIC currently has pan India
operations with 2048 fully computerized branch offices, 8 zonal offices, around
113 divisional offices, 2,048 branches and 1381 satellite offices and corporate
offices. The entire country is classified under 54 customer zones and 25 metro-
area service hubs based across various cities and towns of India. Currently, LIC
has 1,337,064 individual agents, 242 Corporate Agents, 89 Referral Agents, 98
Brokers and 42 Banks for selling life insurance to the general public.
 Brand Image: LIC has a strong branding in India. Its tagline Yogakshemam
Mahamyaham which means welfare for all is well recognized.
The Economic Time Brand Equity Survey of the year 2015 voted LIC as the most
trusted Insurance provider in India.
 Fund Base: LIC has a huge found base of around 150 billion USD and is also
India’s biggest investor making it immensely powerful in the domain of finance in
India.
 A network of Agents: LIC has around 1,337,064 individual agents, 242

Corporate Agents, 89 Referral Agents, 98 Brokers and 42 Banks across India who
cover each nook and corner of the country.
Weaknesses in the SWOT analysis of LIC:
Weaknesses are used to refer to areas where the business or the

brand needs improvement. Some of the key weaknesses of LIC are:
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 Culture: LIC has been strongly associated with the government and thus
follows a very slack and slow paced work culture. This works as a
weakness when compared to modern-day private insurance players who
are adept at strategy.
 Poor advertisement strategy: In comparison to its private counterparts

LIC does not spend too much on advertisement and this shows in the
quality of ads that they release.
 Too many restrictions: The Company has a lot of restriction imposed

on ti being a government entity and there is always red tape challenges.
This makes decision making slow at LIC.
 Labour overheads: LIC has a huge employee’s strength and most of

them work from their own setups. Paying their salaries and managing
theme is often a huge challenge for the company.
Opportunities in the SWOT analysis of LIC:
Opportunities refer to those avenues in the environment that surrounds the business on
which it can capitalize to increase its returns. Some of the opportunities include:
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 Cyber security: There are many cases of information threats and breaches in
security systems. Thus at an age where cyber security is a threat Insurance
policies against this can prove to be a huge opportunity.
 Online Services: As online services grown people have started looking more
into options like insurance and the awareness levels are also higher than the
earlier days. This presents an opportunity for providers like LIC which are
labor intensive to cut down costs by replacing people with technology.
 Shift from protection to prevention: There is a general shift of trend from

protection to prevention which is a pointer for insurance companies who should
now be focusing on risk prevention than risk mitigation policies.
 More disposable income: Insurance today is seen not as a protection but

also as a form of investment. By capitalizing on this new approach insurance
companies can design new products.
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Threats in the SWOT analysis of LIC:
Threats are those factors in the environment which can be detrimental to the growth of
the business. Some of the threats include:
 Competition: With privatization of insurance LIC has lost its older glory and
today faces stiff competition from private insurance players who have brought in
more glamour into the industry.
 Change of governments: With every new government the fiscal and

monetary policies change with the result that policies need to be reworked
accordingly. This creates a lot of hassles.
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 Technology: Today most financial services make technology an integral; part of
their business through online banking and financial broking services online.
However, LIC still has a lot to achieve in terms of staying abreast with technology.
Life Insurance product offered by LIC of india
LIC Jeevan Pragati
LIC of India’s Jeevan Pragati plan is a non-linked, with profits plan offering a
combination of investment and savings. The plan automatically increases the life
insured’s risk cover after every 5 years. LIC Jeevan Pragati is an ideal choice for
individuals looking to build a healthy retirement corpus, while also enjoying the
insurance cover against accident and death. In addition to this, a policyholder can also
avail a loan against this plan.
Benefits of LIC Jeevan Pragati
Death benefit: In case of the death of the policyholder, the nominee is given the sum
assured along with the bonuses, if any. The sum assured is either calculated to be 10
times of the annualised premium or is given as per the terms of the policy i.e. 100% of
the Basic Sum Assured in the first 5 policy years, 125% of the Basic Sum Assured
during 6th to 10th policy years, 150% of the Basic Sum Assured during 11th to 15th
policy years and thereafter 200% of the Basic Sum Assured.
Maturity benefit: Sum assured along with bonuses, if any, is paid to the policyholder
on survival till the end of the policy, provided all the premiums are paid.
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Bonuses: Depending on the profits made by Life Insurance Corporation, the LIC
Jeevan Pragati plan holder is entitled to receive Simple Reversionary bonuses that are
declared on the basic sum assured.
Optional rider: LIC Jeevan Pragati plan can be enhanced by availing the LIC's
Accidental Death and Disability Benefit Rider, the sum assured of which cannot exceed
the basic sum assured.
Features of LIC Jeevan Pragati Plan:
The LIC of India’s LIC Jeevan Pragati plan is loaded with the below features:
 Entry age: The policy can be availed by individuals aged 12 years-45 years.
 Policy period: Term period of 12 years to 20 years is offered.
 Maximum age at maturity: 65 years
 Minimum and maximum sum assured: Rs. 1,50,000-no limit
 Tax benefit: Premium paid is eligible for tax deduction under Section 80C and
maturity amount received is exempted from taxes under Section 10(10D).
 Free look period: 15 days
LIC Jeevan Labh:
LIC of India’s LIC Jeevan Labh is a non-linked, limited premium paying with-profits
endowment plan that offers a mix of protection and savings. A lump sum amount is
41
given to the policyholder on maturity or is given to the nominee in case of the death of
the policyholder during the term of the policy. Loans can be availed against this type of
plan.
Benefits of LIC Jeevan Labh
Death benefit: In case of death of the policyholder during the term of the policy, the
nominee is paid the sum assured along with the simple revisionary and final bonuses, if
any. Death benefit is paid only if the premiums are fully paid.
Maturity benefit: On survival till the end of the policy, maturity benefit i.e. the sum
assured is given to the policyholder along with simple revisionary and final bonuses, if
any.
Features of LIC Jeevan Labh:
Life Insurance Corporation of India’s LIC Jeevan Labh plan offers the below host of
benefits:
 Minimum and maximum entry age: 8 and 59 years
 Premium paying term: is lesser compared to the policy term
 Policy term: the plan has a policy term of 16/21/25 years.
 Tax benefits: Tax benefits are provided under section 80C and 10(10D) of the
Income Tax Act, 1961.
 Mode of payment: Premium can be paid on a yearly, half-yearly and quarterly

basis. A grace period of 30 days is provided for this mode of payment. The grace
period of 15 days is provided in case of monthly paying term.
 Minimum sum assured: Rs. 2,00,000
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 Maximum sum assured: No limit
 Maturity age: 75 years
 Riders: Policyholder can enhance the coverage of the LIC Jeevan Labh plan by
adding riders such as Accidental Death and disability benefit rider or new term
assurance rider.
LIC Single Premium Endowment Plan
LIC of India’s Single Premium Endowment Plan is a participating, non-linked

endowment plan. This is a traditional endowment plan giving both death and maturity
benefits along with bonuses.
Benefits of LIC single premium endowment plan
Maturity benefit: The policy terminates if the policyholder survives the term. Sum
assured with simple revisionary and final additional bonus is given, if any.
Death benefit: If the life insured dies before the commencement of the risk, only the
single premium is returned. After the commencement of the risk, sum assured along
with the bonuses is paid, if any.
Surrender value: Policyholders receive 70% of the premium on surrendering the policy
within the first year. 90% of the single premium is paid from the second year onwards.
Features of LIC single premium endowment plan
 Minimum and maximum entry age: 90 days and 65 years
 Maturity age: 18-75 years.
 Premium paying mode: One-time
 Sum assured: 50,000-no limit
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 Policy Term: 10-25 years
 Tax benefits: Policyholder gets tax benefit under the section 80C and the
maturity amount is tax-free under the section 10(10D).
LIC’s New Endowment Plan
LIC’s new endowment plan is a participating, non-linked endowment plan that offers a
good mix of protection and savings. The plan pays a lump sum amount on the survival
of the policy and provides financial protection to the family, in case of death of the
policyholder before the completion of the term. In addition, loan can be taken against
this plan.
Benefits of LIC New Endowment Plan
Maturity benefits: Basic sum assured is paid along with the bonuses, if any, on the
survival of the term of the policy.
Death benefit: If the policyholder dies before the completion of the policy term, the sum
assured is paid along with the bonuses, if any. Under this type of endowment plan, the
death benefit is not less than Basic Sum Assured or 10 times of annualised premium or
105% of the total premium paid as on death.
Rider: Accidental death and disability rider can be availed with this type of plan. If the
policyholder buys the rider along with the basic endowment plan, then an extra sum
assured is given to the beneficiary, in case of death of the policyholder during its term.
Features of LIC New Endowment Plan
 Minimum and maximum entry age: 8 and 55 years
 Policy term: 12- 35 years
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 Premium paying frequency: Annual, half-yearly, quarterly and monthly
 Sum assured: 1,00,000-no limit
 This plan is ideal for individuals who want to build healthy savings along with life
coverage.
LIC’s New Jeevan Anand
LIC of India’s New Jeevan Anand is a combination of both savings and protection. The
plan provides protection till the death of the insured, even after its maturity term.
Therefore, this plan is ideal for investors looking for a savings tool as well as getting the
required protection.
Benefits of LIC New Jeevan Anand Plan
Simple reversionary bonuses: The LIC New Jeevan Anand plan participates in the
profits of the corporation, accumulating simple revisionary bonuses that is given to the
policyholder at the end of the policy term. This bonus is given provided all the premiums
are paid. The final additional bonus is given under the plan in the year when the policy
results in death claim or on maturity of the policy.
Death benefit: If the policyholder dies during the term of the policy, the death benefit is
given to the nominee in the form of sum assured on Death which is higher of 125% of
Basic Sum Assured or 10 times of annualized premium along with bonuses, if any. On
death of policyholder at any time after policy term Basic Sum Assured is paid.
Maturity benefit: If all due premiums have been paid, the policyholder is entitled to
receive maturity benefits. Basic Sum assured along with Simple Reversionary Bonuses
and Final Additional Bonus is also given if any.
Rider: By paying an additional premium, the policyholder can enhance the coverage of
LIC Jeevan Anand. Riders such as Accidental Death and Disability Benefit Rider can be
opted along with this policy.
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Features of LIC New Jeevan Anand Plan
 Entry age: 18-50 years
 Tax: Premium paid is eligible for tax deduction under section 80C of the Income
Tax Act, 1961. The maturity amount is exempted as per section 10(10D).
 Policy term: 15-35 years
LIC’s Jeevan Rakshak
LIC of India’s Jeevan Rakshak is a participating endowment plan with death and
maturity benefit, offering a right mix of protection and savings. The premium for this type
of plan has to be paid till the end of the policy. On survival till the end of the term, the
basic sum assured along with Loyalty Addition, if any is given to the policyholder.
Benefits of LIC Jeevan Rakshak
The policy participates in the profits of the life corporation, the Loyalty Addition which
are given after completion of 5th policy year or death or at the end of the policy term.
Maturity benefit: The policy terminates on its maturity and the insured is given the sum
assured and the Loyalty Addition, if any. Death benefit: If the policyholder dies after 5
years from the date of the policy, only then the death benefit in the form of sum assured
and Loyalty Additions is given to the nominee.
Rider: Accident Benefit Rider can be opted for along with this type of life insurance plan
offered by LIC of India.
Features of LIC Jeevan Rakshak
 Minimum and maximum age: 8-55 years
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 Minimum and maximum sum assured: Rs. 75,000-Rs. 2, 00,000
 Premium paying frequency: Annually, half-yearly, quarterly and monthly
LIC's Limited Premium Endowment Plan
LIC of India’s Limited Premium Endowment Plan is a simple participating endowment

plan offering death and maturity benefit along with the option to opt for riders. The
premium for this type of plan has to be paid only for a limited number of years and the
policy continues to be in force.
Benefits of LIC Limited Endowment Plan
Maturity benefit: On survival till the end of the policy, the basic sum assured and the
accrued bonuses, if any are paid to the policyholder.
Death benefit: If the life assured dies during the policy term, 125% of the basic sum
assured and the accrued bonuses, if any are paid to the nominee. The policy ends with
the death of the policyholder.
Bonus: The policyholder participates in the profits of the corporation which is shared
with the policyholder in the form or Simple Reversionary Bonuses and final addition
bonus.
Features of LIC Limited Endowment Plan
 Minimum and maximum entry age: 18 years-62 years
 Policy term: 12, 16 or 21 years
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 Premium payment term: 8 & 9 years
 Minimum and maximum assured: Rs. 3, 00,000- no limit
 Premium paying frequency: Annually, half-yearly, quarterly or monthly
 Surrender value: Surrender value is given after completion of 2 years of the

policy
 Tax Benefit: Premium paid is eligible for tax benefits under Section 80Cand the
maturity amount is exempted from tax under Section 10(10D).
LIC’s Jeevan Lakshya
LIC of India’s Jeevan Lakshya is a beneficial plan for minors, offering a lump-sum
amount irrespective of the survival of the insured at the time of policy maturity.. The plan
fulfils the requirement of the family, especially the children by providing an annual
income benefit.
Benefits of LIC Jeevan Lakshya
Maturity benefit: Provided all the premiums have been paid, maturity benefit in the
form of lump sum equal to the basic sum assured is given to the policyholder on the
survival of the policy. Bonuses, if any are given too.
Death benefit: Provided the policy is in force and all the due premiums are paid, the
death benefit is given as follows to the nominee.
Annual Income Benefit equal to 10% of the Basic Sum Assured, payable from the policy
anniversary or the date of death of Life Assured, till date of maturity.
Assured Absolute Amount equal to 110% of Basic Sum Assured, shall be paid on
maturity and accumulated bonuses, if any.
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The policy continues to participate in profits up to the date of maturity and the entire
bonus, including simple revisionary and final bonus, is paid to the nominee on the
maturity of the policy.
Bonus: The policyholder is entitled to receive simple reversionary bonuses declared as

per the experience and profits made by the life insurance corporation, provided the
policy is in full force.
Features of LIC Jeevan Lakshya
 Minimum and maximum entry age: 18-50 years
 Sum assured: Rs. 1, 00,000- no limit
 Premium tenure: policy term less 3 years
 Tax-free
 Premium paid is eligible for tax benefits under Section 80Cand the maturity
amount is exempted from tax under Section 10(10D).
LIC's Aadhaar Shila
Aadhar Shila plan offered by LIC of India provides a good combination of protection and
savings. The plan is extensively curated for females having Aadhaar Card issued by
UIDAI (Unique Identification Authority of India). The plan offers financial security to the
family, in case of the demise of the policyholder during the term of the policy. In addition
to this, the plan offers an auto cover and loan facility. To avail this plan, the female does
not have to go through any medical examination.
Benefits of LIC Aadhar Shila
Death benefit: In case of death of the policyholder during the first five years, sum
assured on death is payable.
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In case of death of the policyholder after five years or before the maturity term, sum
assured on death, along with Loyalty Addition, if any is paid.
Maturity benefits: Sum assured on maturity and Loyalty Addition, if any is paid to the
policyholder if he survives the term of the policy. The maturity benefit is provided if all
the premiums are duly paid.
Loyalty addition: The plan is eligible for loyalty additions when the policy has
completed 5 policy years which is payable on death and maturity if the policy was in
force.
Features of LIC Aadhar Shila
 Sum assured: Rs. 75,000- 3, 000,000
 Premium paying term: Same as Policy Term
LIC’s Aadhar Stambh
LIC of India’s Aadhar Stambh plan provides a good mix of savings and protection. The
plan is extensively designed for male lives having Aadhaar Card issued by UIDAI
(Unique Identification Authority of India). The plan provides protection to the family of
the policyholder in the event of his unfortunate demise.
Benefits of LIC Aadhar Stambh
50
Death benefit: In case of death of the policyholder during the first five years, sum
assured on death is payable.
In case of death of the policyholder after five years or before the maturity term, sum
assured on death, along with Loyalty Addition, if any is paid.
Maturity benefits: Sum assured on maturity and Loyalty Addition, if any is paid to the
policyholder if he survives the term of the policy. The maturity benefit is provided if all
the premiums are duly paid.
Loyalty addition: The plan is eligible for loyalty additions when the policy has
completed 5 policy years which is payable on death and maturity if the policy was in
force
Features of LIC Aadhar Stambh
 Sum assured: Rs. 75,000- 3, 000,000
 Premium paying term: Same as Policy Term
 Premium paying frequency: annually, half-yearly, quarterly and monthly
LIC Whole Life Insurance Plan
LIC Jeevan Umang:
LIC of India’s Jeevan Umang is a whole life assurance scheme that provides a good mix
of savings and protection. At the end of the premium paying term until its maturity,
51
annual benefits are given to the policyholder. A lump sum amount is given to the
insured on death or at the time of maturity of the policy.
Benefits of LIC Jeevan Umang Plan
Death benefit: If the policyholder dies before the commencement of the risk, then this
plan returns all the premiums paid (without interest) to the nominee of the insured.
However, if death is caused after the commencement of the risk, then the sum assured
along with vested Simple Reversionary bonuses, if any, is paid to the beneficiary.
Survival benefit: If the life insured survives until the end of premium paying term, a
survival benefit equal to 8% of Basic Sum Assured is payable each year, provided all
the premiums are paid. The survival benefit is paid each year until the life insured
survives or till the date of maturity of the policy.
Maturity benefit: If the policyholder survives until the end of the policy term, the sum
assured on maturity, along with Vested Simple Reversionary bonuses, if any is paid.
Participation in profits: Depending upon the Corporation’s experience with regards to

policies issued under this plan, the policy shall participate in profits during the policy
term.
Rider: LIC Jeevan Umang plan offers the below riders.
 LIC’s Accidental Death and Disability Benefit Rider
 LIC’s Accident Benefit Rider
 LIC’s New Term Assurance Rider
 LIC’s New Critical Illness Benefit Rider
The sum assured of the rider cannot exceed the sum assured of the basic life insurance
policy.
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Features of LIC Jeevan Umang Plan
 Minimum and maximum sum assured: Rs. 2,00,000- no limit
 Premium paying term: 15, 20, 25 and 30 years
 Policy term: 100 years less age at entry
 Minimum and maximum entry age: 90 days- 55 years
 Minimum Age at the end of premium paying term: 30 years
 Maximum Age at the end of premium paying term: 70 years
 Maturity age: 100 years (nearest birthday)
LIC of India Money Back Plans
LIC’s Bima Shree
LIC of India’s LIC Bima Shree is a non-linked, with profit, limited premium payment
money back plan. The plan is specially curated for high-net-worth individuals, offering
financial stability to the insured’s family, in case of his untimely demise. The plan makes
period payments at specified durations and provides lump sum amount to the
policyholder at the time of maturity. In addition to this, the plan also offers you with an
option to avail a loan against the policy.
Benefits of LIC Bima Shree Life Insurance
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Death benefit: If the policyholder dies during the first five years of the policy, the sum
assured on death, along with accrued Guaranteed Addition are paid. If Death occurs
after five years, the sum assured on death along with loyalty additions and accrued
Guaranteed Addition is paid.
Survival benefit: Provided all the premiums have been paid, the survival benefit is paid
in the following ways:
 For policy term 14 years: 30% of Basic Sum Assured on each of 10th and 12th
policy anniversary.
policy anniversary.
policy anniversary.
 For policy term of 20 years: 45% of Basic Sum Assured on each of 16th and
18th policy anniversary.
Maturity benefits: On survival till the end of the policy term, sum assured, along with
bonuses, if any is payable to the policyholder.
Under this plan, the sum assured that is given as maturity benefit is
 40% of Basic Sum Assured for policy term 14 years
 30% of Basic Sum Assured for policy term 16 years
 20% of Basic Sum assured for policy term 18 years
 10% of Basic Sum assured for policy term 20 years
These additions are provided during the premium paying term at the end of each policy
year. The rate of Guaranteed Additions shall be as follows:
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 Rs. 50 per thousand Basic Sum Assured for the first five years
 Rs. 55 per thousand Basic Sum Assured from 6th policy year till the end of the
premium paying term.
If the policy has completed 5 years and premiums are regularly paid, then depending on
the Corporation’s experience, the policies under this plan are eligible for loyalty
additions at the time of death or its maturity.
Riders: Various riders that can be opted with this plan are LIC’s Accidental Death and
Disability Benefit Rider, LIC’s Premium Waiver Benefit Rider, LIC’s New Critical Illness
Benefit Rider, LIC’s New Term Assurance Rider and LIC’s Accident Benefit Rider.
Eligibility criteria for LIC Bima Shree Life Insurance
 Minimum and maximum sum assured: Rs. 10, 00,000-no limit
 Policy term: 14, 16, 18 and 20 years
 Minimum and maximum entry age: 8years
 55 years (nearer birthday) for policy term 14 years
 Maturity age: 69 years (nearer birthday) for policy term 14 years
 Premium paying term: Policy term - 4 years
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LIC’s Jeevan Shiromani
LIC of India’s LIC Jeevan Shiromani offers financial protection to the family of the
policyholder, in case of his demise. Period payments are made to the policyholder
during the term of the policy and sum assured along with accrued Guaranteed Addition
and Loyalty Addition, if any are paid at the time of maturity of the policy. In addition to
this, the plan also provides lump sum amount equal to 10% of the chosen Basic Sum
Assured on the diagnosis of any of the specified Critical Illnesses.
Benefits of LIC Jeevan Shiromani
Death benefit: If the policyholder dies before the term of 5 years, the sum assured on
death along with accrued guaranteed addition are paid to the nominee. However, if the
death occurs after 5 years, the sum assured along with accrued guaranteed additions
and loyalty additions, if any is paid to the policyholder.
Survival benefit: Fixed percentage of sum assured is paid in the following ways:
For policy term 14 years: 30% of Basic Sum Assured on each of 10th and 12th policy
anniversary.
anniversary.
anniversary.
For policy term 20 years: 45% of Basic Sum Assured on both 16th and 18th
anniversary of the policy.
Maturity benefit: On survival of the policyholder till the end of the policy term, maturity
benefit in the form of sum assured along with bonuses, if any. Sum assured in this
policy is as under:
40% of Basic Sum Assured for policy term 14 years
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30% of Basic Sum Assured for policy term 16 years
20% of Basic Sum assured for policy term 18 years
10% of Basic Sum assured for policy term 20 years
Inbuilt critical illness benefit:
On first diagnosis of any one of the 15 critical illnesses mentioned in the policy
documents, the policyholder is given Critical Illness Benefit equal to 10% of Basic Sum
Assured. The policyholder is also provided with the benefit to take a second medical
opinion and also defer the payment of premium(s).
Features of LIC Jeevan Shiromani
Minimum and maximum sum assured: Rs. 100,00,000-no limit
Policy term: 14, 16, 18 and 20 years
Minimum and maximum entry age: 18 years (completed)
55 years (nearer birthday) for policy term 14 years
45 years (nearest birthday) for policy term 20 years
Maturity age:
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LIC's New Money Back Plan- 20 years
LIC of India’s Money Back Plan-20 years is a money-back traditional, participating non-
linked plan that makes out pay-outs at certain intervals. This plan is a simple money
back plan that comes along with Simple Reversionary bonus. The plan stays in force for
20 years and makes pay-out at certain intervals.
Benefits of LIC New Money Back Plan-20 years
Bonus: The plan participates in the corporation’s profits and accordingly simple
revisionary and final addition bonuses, if any is paid out.
Survival benefits: If the policyholder survives the policy term, then 20% of sum
assured is paid on the 5th, 10th and 15th year respectively.
Maturity benefit: On survival till the end of the policy term, maturity benefit is paid in
the form of 40% of the basic sum assured along with accrued bonuses. The policy
terminates on maturity.
Death benefit: Irrespective of the amount paid to the policyholder, sum assured on
death along with additional bonuses, if any is paid to the policyholder.
Rider benefit: The policyholder can enhance the coverage of this money back plan by
LIC by opting for a rider such as LIC’s Accidental Death and Disability Benefit Rider.
Features of LIC New Money Back Plan- 20 years
 Premium paying term: 15 years
 Policy term: 20 years
 Sum assured: Rs. 1,00,000-no limit
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 Premium payment frequency: Annual, half-yearly, quarterly and monthly
LIC’s New Money Back Plan-25 years
LIC of India’s New Money Back Plan- 25 years is a participating non-linked plan,
offering the benefit of periodic payments as well as protection. This provides financial
protection to the family of the policyholder and also offers money to the policyholder on
regular intervals. This is a simple money back plan that comes along with bonuses and
stays in force for 25 years.
Benefits of New Money Back Plan- 25 years
Bonus: Final addition bonus and a simple reversionary bonus is given to the
policyholder by the company.
Survival benefit: On survival, 15% of the sum assured is paid to the policyholder as
survival benefit. The sum assured is payable in the 5th, 10th, 15th and 20th year.
Maturity benefit: If the insured survives till the end of the term, then the remaining 40%
along with bonuses, if any is paid to the policyholder.
Death benefit: In case of the unfortunate demise of the policyholder during the term of
the policy, the sum assured on death along with accrued bonuses, if any is paid to the
beneficiary, irrespective of the survival benefits paid earlier.
Features of New Money Back Plan- 25 years
 Policy term: 25 years
 Premium paying term: 20 years
 Sum assured: 1, 00,000- no limit
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 Tax benefits: Tax benefits can be availed as per section 80C and 10(10D) of the
Income Tax Act, 1961.
LIC New Bima Bachat
LIC of India’s Bima Bachat is a single premium saving cum protection plan that requires
the policyholder to pay the premium in lump sum at the outset of policy. This is a money
back plan offering financial protection against death caused during the term of the
policy, while also giving the survival benefits. The plan can be purchased for a span of
9, 12 and 15 years.
Benefits of LIC New Bima Bachat
Loyalty addition: On completion of the 5-year tenure, LIC of India declares loyalty
addition that is given to the policyholder at the end of the policy term.
Death benefit: Sum assured is given during the first five years of the policy. On
completion of the five years of the policy, if the policyholder dies, then the nominee
receives the sum assured along with loyalty addition, if any.
Survival benefit: During the policy term, the survival benefit is given as below:
For policy term of 9 years: 15% of the Sum Assured at the end of each of 3rd & 6th
policy year
For policy term 12 years: 15% of the Sum Assured at the end of each of 3rd, 6th & 9th
policy year
For policy term 15 years: 15% of the Sum Assured at the end of each of 3rd, 6th, 9th &
12th policy year
Maturity benefit: Single premium paid along with loyalty addition is paid to the
policyholder on the survival of the term of the policy.
Features of LIC New Bima Bachat
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Minimum entry age: 15 years
Maximum entry age:
 66 years for 9 years policy term

Maturity age: 75 years
Policy term: 9, 12 and 15 years
Premium paying term: Single
Minimum Sum assured: Rs. 35,000 for policy term of 9 years
Rs. 50,000 for policy term of 12 years
Rs. 70,000 for policy term of 15 years
LIC’s Jeevan Tarun
LIC of India’s Jeevan Tarun plan offers an attractive combination of savings and
protection for securing your child’s future. The plan is specifically designed to cater to
the needs of the growing children and thus, provides annual Survival Benefit from the
age 20 until 24 years and maturity benefit is given at the age of 25 years. It lets the
policyholder decide the proportion of the survival benefits to be availed during the term
of the policy.
Option 1 No survival benefit 100% of Sum Assured
Option 2 5% of Sum Assured every year for 5 years 75% of Sum Assured
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Benefits of LIC Jeevan Tarun
Survival benefit: If the policyholder survives, a certain % of the sum assured is given to
the policyholder every year or immediately following the completion of 20 years of age
and thereafter on each of next four policy anniversaries.
Death benefit: In case of demise of the policyholder during the term of the policy, the
sum assured along with bonuses, if any is paid to the policyholder. The death benefit is
irrespective of the survival benefit give in the past.
Maturity benefit: On surviving the tenure of the policy, the amount left over the basic
sum assured along with acquired bonuses, if any is paid to the policyholder.
Rider: LIC’s premium waiver benefit rider can be availed with this type of plan.
Features of LIC Jeevan Tarun
 Minimum and maximum entry age: 90 days-12 years
 Policy term: 25-age at entry of the child
 Premium paying term: 20 years – age at entry
 Sum assured: Rs. 75000-No limit
LIC of India’s Term Plans
LIC’s Anmol Jeevan II
This is a pure protection plan providing financial security to the family of the
policyholder, in case of his demise.
Benefits of LIC Anmol Jeevan II
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Death benefit: The sum assured is payable to the nominee on death of the policyholder
during the term of the policy.
Maturity benefit: If the policyholder survives the term, nothing is payable.
Features of LIC Anmol Jeevan II
 Minimum policy term: 5-25 years
 Premium paying term: Equals to the tenure of the policy
 Sum assured: Rs. 6 lakhs to Rs. 24 lakhs
 Tax benefits: There are tax benefits available under Sec 80C and under Sec
10(10D) for the premiums paid and for the death benefit paid out by the policy,
respectively.
LIC’s Amulya Jeevan II
This plan makes a pay out of the sum assured in case of the demise of the policyholder
during the term of the policy.
Benefits of LIC Amulya Jeevan II
Death benefit: If the policyholder dies during the tenure of the policy, death benefit is
paid to the nominee.
Maturity benefit: Nothing is payable on survival till the end of the policy term.
Features of LIC Amulya Jeevan II
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 Premium paying term: same as the tenure of the policy
 Sum assured: Rs. 25 lakhs-no limit
 Tax benefits: The policyholder can claim tax deduction under Section 80C of the
Income Tax Act, 1961 for the premiums paid, while the nominee can avail tax
benefits on the death benefits received under Section 10(10D).
LIC’s e-term Plan
LIC of India’s e-term plan can be purchased online through their official website-
www.licindia.in. The plan is a pure term plan wherein the death benefit is given to the
nominee in case of death of the policyholder during the term of the policy. The plan
offers preferential premium rates for non-smokers and female lives.
Benefits of LIC e-term plan
Death benefit: If the policyholder dies during the tenure of the policy, death benefit is
paid to the nominee.
Maturity benefit: Nothing is payable on survival of the policy term.
Tax benefits can be availed as per section 80C and 10(10D) of the Income Tax Act,
1961.
Features of LIC e-term plan
 Minimum and maximum entry age: 18 – 60 years
 Maximum maturity age: 75 years
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 Policy term: 10- 35 years
 Minimum and maximum sum assured: Rs. 25 lakhs-no limit (Rs. 25 Lakhs for
aggregate and Rs. 50 Lakhs for non-smokers)
 Premium paying term: equals to the tenure of the policy
 Premium paying frequency: annual basis
LIC of India’s Pension Plan
Pension plans are most suitable to secure an individual during the years of retirement.
LIC of India offers the below-mentioned pension plans.
Pradhan Mantri Vaya Vandana Yojana:
This is a pension plan launched by the government of India for senior citizens who have
attained the age of 60 years. The plan offers three benefits such as the maturity benefit,
pension payment and death benefit. The plan can be purchased offline or online.
Benefits of Pradhan Mantri Vaya Vandana Yojana
Pension Payment: If the pensioner survives the policy term of 10 years, then the
pension is paid regularly at the end of each period chosen.
Death Benefit: If the policyholder dies during the term of 10 years, then the price at
which the plan was purchased is given to the policyholder.
Maturity Benefit: If the pensioner survives the term of the policy, then pension, as well
as the purchase price, is payable.
Features of Pradhan Mantri Vaya Vandana Yojana
Minimum and maximum entry age: 60- no age limit
Policy term: 10 years
Minimum pension paid:

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 Rs. 1,000/- per month
 Rs. 3,000/- per quarter
 Rs.6,000/- per half-year
 Rs.12,000/- per year
Maximum pension paid:
 Rs. 10,000/-per month

 Rs. 30,000/- per quarter
 Rs. 60,000/- per half-year
 Rs. 1,20,000/- per year
Mode of pension payment: Annual, half-yearly, quarterly and monthly
LIC New Jeevan Nidhi

LIC of India’s LIC New Jeevan Nidhi is a conventional pension plan offering a mix of
savings and protection. The plan provides death cover during the period of deferment
and provides annuity on survival to the date of investment.
Benefits of LIC New Jeevan Nidhi
Death benefit: If the policyholder dies during the first five years of the policy purchase,
then the sum assured along with guaranteed additions, if any is paid in lump sum or
given in the form of an annuity and partly lump sum is paid and balance in the form of
an annuity to the nominee.
If the death of the policyholder occurs after five years of the policy purchase, then sum
assured along with guaranteed additions and simple revisionary bonuses, if any is paid
in lump sum or given in the form of an annuity and partly lump sum is paid and balance
in the form of an annuity to the nominee.
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Death benefit is only given if the policy is in force during the time of the death of the
policyholder.
Benefits on vesting: At the time of vesting, sum assured along with guaranteed
additions, vested Simple Reversionary bonuses and Final Additional bonus, if any, shall
be made available to the Life Assured.
The benefit paid on vesting can be utilized either for purchasing an immediate annuity
or a new single premium deferred pension product from LIC of India.
Riders: The policy can be purchased along with riders such as LIC’s Accidental Death
and Disability Benefit Rider.
Features of LIC New Jeevan Nidhi
 Minimum and maximum entry age: 20 years-60 years
 Vesting age: 55-65 years
 Deferment period (Policy term): 5-35 years under Single Premium & 7 to 35
under Regular Premium
 Premium paying frequency: Single pay or equal to policy term
 Sum assured: For regular pay-1,00,000
 For single pay-Rs. 1,50,000
LIC’s Jeevan Akshay - VI
LIC of India’s Jeevan Akshay is a single premium, non-linked, immediate annuity plan
that can be purchased on paying a lump sum amount. The plan offers various annuity
options and the pay-out is made immediately after the payment of the premium.
Benefits of LIC Jeevan Akshay
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Death benefit: On the death of the policyholder, the death benefit is given to the
policyholder depending on the annuity option chosen.
Maturity benefit: This plan does not offer any maturity benefits
Features of LIC Jeevan Akshay
 Types of annuity options offered under this plan:
i) Annuity paid for life at a uniform rate.
ii) Annuity paid for 5, 10, 15 or 20 years certain and thereafter as long as the
annuitant is alive.
iii) Annuity for life with return of purchase price on death of the annuitant.
iv) Annuity paid for life increasing at a simple rate of 3% p.a.
v) Annuity for life with a provision of 50% of the annuity payable to spouse during
his/her lifetime on death of the annuitant.
vi) Annuity for life with a provision of 100% of the annuity payable to spouse
during his/her lifetime on death of the annuitant.
vii) Annuity for life with a provision of 100% of the annuity payable to spouse
during his/ her lifetime on death of the annuitant. The purchase price will be
returned on the death of the last survivor.
 Minimum and maximum purchase price of annuity: 1-1.5 lakhs-no limit
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TOPIC PROFILE
69
MARKETING
 India is one of the largest consumer markets in the world, with its population of
middle-class consumers expected to reach 200 million in 2020 and 475 million in
2030. But it is a complex and diverse consumer market, and it is vital to tailor
your marketing strategies and even your products to local preferences. In
addition to intense competition from both small and large local retailers and
international companies, you must consider the diversity of cultural backgrounds,
differing levels of wealth and sophistication, and the sheer size of both the
population and land mass.
 The best way to deal with the complexities of the Indian market for marketing and
advertising purposes is to invest in and hire local knowledge. Both Indian and
international companies specialise in marketing in India. A comprehensive
marketing plan that considers core elements such as your brand, stakeholder
management, public relations, media (including digital and social media), and
your product/brand value proposition is critical.
 Be aware, however, that you will need to continually reassess your marketing
strategy and plan. The Indian socio-economic environment is constantly evolving
and changing, which in turn impacts on consumer choices. You should be
particularly mindful of factors.
Brand awareness
 Indian middle-class consumers place strong importance on brands, particularly

luxury brands. Status is a key factor – many people will buy luxury goods not
because they necessarily like them, but because they are representations of
70
success. Make sure you have a specific strategy focusing on brand localisation,
brand building and awareness creation.
 New entrants to the market with a recognised brand may wish to consider a
product launch or media conference to announce their arrival in India.
Price consciousness
 For everyday commodities, price is an important consideration for Indian

consumers, particularly at the lower-middle class and lower- income levels. As
opposed to status items on which wealthier Indian consumers are willing to
spend more, non-status items are likely to be chosen based on price.
Demographic dynamics
 India’s middle and upper- middle income households in larger cities are
demanding quality across a wide range of products and services, especially
those that focus on health and wellness, as well as education. The rural
consumer market in India, comprising 700 million people, is largely
underserviced at the moment for health and wellness goods and services,
education and other consumer goods and services, leaving ample opportunity for
growth.
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Logistics
 As explored earlier in this guide, India is still a developing country with a less
sophisticated logistics supply chain than in Australia and many of Australia’s
traditional, more developed export markets. Less-developed infrastructure in
some poorer regions in particular may cause delays in getting goods to markets
and consumers.
Product and service adaptations
 You may need to adapt your product to meet Indian preferences or requirements.
Adapting to local regulations, tastes and cultural preferences vastly improves
your chances of success.
Brand marketing and advertising
 Language, culture and symbolism need to be considered when marketing and

advertising in India. Generally, you can preserve your English company name
when trading in India .If you choose to adopt a name with a more local flavour,
seek trusted advice before you register the name. Advertising is subject to some
regulation in India. Enforcement of these regulations is not as strict as in some
other countries unless an advertisement incites public outrage.
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ROLE OF MARKETING STRATEGIES IN LIFE INSURANCE
BUSINESS
 As we‘ve seen the key objective of an organization‘s marketing efforts is to develop

satisfying relationships with customers that benefit both the customer and the
organization. These efforts lead marketing to serve an important role within most
organizations and within society. At the organizational level, marketing is a vital business
function that is necessary in nearly all industries whether the organization operates as a
for-profit or as a not-for-profit. For the for-profit organization, marketing is responsible
for most tasks that bring revenue and, hopefully, profits to an organization.
 For the not-for-profit organization, marketing is responsible for attracting customers

needed to support the not-for-profit‘s mission, such as raising donations or supporting a
cause. For both types of organizations, it is unlikely they can survive without a strong
marketing effort. Marketing is also the organizational business area that interacts most
frequently with the public and, consequently, what the public knows about an
organization is determined by their interactions with marketers. For example, customers
may believe a company is dynamic and creative based on its advertising message. At a
broader level, marketing offers significant benefits to society.
These benefits include:
 Developing products that satisfy needs, including products that enhance society‘s quality
of life.
 Creating a competitive environment that helps lower product prices.
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 Developing product distribution systems that offer access to products to a large number
of customers and many geographic regions.
 Building demand for products that require organizations to expand their labor force.
 Offering techniques that have the ability to convey messages that change societal
behavior in a positive way (e.g., antismoking advertising).
 A very common way to promote a Life insurance company through Life Insurance
Marketing is to make the name of the company familiar to others by means of television
commercials, handling out pamphlets, hanging banners in populated areas and by
providing exciting offers.
 Telephone marketing is another way of Life Insurance Marketing. One can see the
telephone companies send messages about various offers and they even make phone
calls. Web Insurance Marketing is another good strategy to promote insurance policies.
The pop ups that one sees while using Internet are actually a very effective way of
sending messages across the potential insurance customers.
 One should listen to the existing Life Insurance Policy Holders as well as the potential
Life insurance policyholders and listen to what people who actually matters have to say.
One common problem that the insured persons face is that the insurance companies do
not inform its clients about the hike in the premium rates. These things should be kept in
mind. Not only that, a client should be informed about everything related to his policy
and the Life insurance company should keep the transparency as much as possible.
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 A Life Insurance Company should not charge different Life insurance client different
charges for the same policy. This kind of policy gives the Life insurance policyholders
the feeling that they are being treated unfairly and that the Life insurance companies are
only looking for profits and not the betterment of customer welfare.
 When a Life insurance claim is filed, especially for a very big hefty amount, the Life
insurance Company should help the policyholder in processing out the paperwork. One
should not let bureaucracy enter and make it so difficult for the one making the claim so
that he gives his claim .This has always been a common tactic on the insurance
company's part to avoid paying claims claimed by the policyholder. This though makes a
short-term profit for the company but it hurts in the end as the reputation of the company.
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RESEARCH METHODOLOGY
76
This paper is descriptive in nature and is purely based on secondary data, which was collected
from various research articles, journals, magazines and websites, especially from the Ministry of
Human Resource Development, department of Higher Education, the University Grants
Commission and the Government of India. Further, latest contributions of various experts on the
subject have also been referred to:
RATIONALE OF STUDY
The Higher education space of India is occupied by 85% of our demographic dividend and the
future of India is being crafted in this space. To provide the best in this space, we need to
leverage on the strengths of several others who have made impressive strides in varied fields.
This collaborative effort is becoming increasingly important as Higher Educational Institutions
strive to provide a trans-disciplinary approach in education, to provide a global understanding
from a local perspective and in transforming universities into ‘engaged communities’ that would
be open to the subaltern aspirations of society. It is in this context that this paper on
‘Collaborative Learning’ assumes importance.
OBJECTIVES OF STUDY
This paper proposes to study the following:
1) To study the need for and relevance of collaboration and meaningful partnership in Higher
Education,
2) To study the prerequisites for creating an effective collaboration, and 3) to identify the
probable areas where collaboration could be forged by Academic Institutions.
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COLLABORATION AND MEANINGFUL PARTNERSHIP IN HIGHER
EDUCATION - NEED AND RELEVANCE
With limited excellent institutions, constrained infrastructure, underinvestment in libraries and

other resources, restricted research facilities and several other such concerns, collaboration could
a much-coveted solution in moving from limits to possibilities. Collaboration could aid in
bridging the gap towards quality and excellence in higher education in India. Elaborated below
are a few urges on the need and relevance of this meaningful partnership in Higher Education.
 Sharing of Knowledge: Knowledge transfer between universities and other

collaborators, particularly the industry, may take place through a variety of mechanisms
ranging from recruitment of university graduates to personnel exchanges, joint research,
contract research, consultation, patents and publications, licensing, spin-off companies,
industrial R&D consortia, industry-funded laboratories and other facilities and also
informal contacts, such as meetings and conferences. This flows of tacit knowledge and
informal contacts between collaborators are the prime purpose of a meaningful
collaboration.
 Sharing of Experience: An active participation in interaction, discussion and

experience sharing between the collaborators could help reduce the learning curve and
aid in creating relevant academic programs.
 Mutually beneficial Partnership: Collaboration identified and forged in the right

spirit is bound to be mutually beneficial. In case of collaboration between the industry
and the university, there exists specific collaborative support that one can expect from the
other and they remain mutually beneficial. The collaborative support that the university
could offer could be
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a) Knowledge transfer to the industry and the world at large in the form of publications,
conference exchanges, education and training, etc.
b) Knowledge transfer through R&D support, technical support, consulting services,

etc.
c) Knowledge transfer through contract and collaborative research.
Similarly, the collaborative support that the industry could offer could be
(a) Offering experiential learning for the faculty and students
(b) Collaborative research and innovation, and
(c) Placements, internships etc.
 Creating Synergy: Collaboration between the institution and the industry, or another
institution or a professional body or social development institution work on a simple
formula viz. 2 + 2 >4. Meaningful, committed collaboration will bring about innovation
and change by the operation of synergy.
 Diminishing Existing Weaknesses: As collaborators set out on the strategy to create

collaboration, it is central that they identify the areas of pain and weakness that needs to
be addressed to make further progress. Once this has been done, choice of collaborators
who could help diminish the existing weakness and provide renewed strength would fill
the gap and help achieve synergy.
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 Enriching Existing Strengths: It is vital for universities and institutions to
remember that when they forge links with collaborators, that these partnerships need not
only address their weak areas but also help in capitalizing on the existing strengths of the
parent institution.
 Creating Manifold Opportunities: Collaboration between the university and

industries creates manifold opportunities for the collaborators. Increased research
funding, education and training support, joint research endeavor etc. is a few to suggest.
Such collaboration can also advance the service mission of universities and serve as
means of local and regional economic development.
 Definite means to Quality Enhancement: Collaborative efforts undeniably

increase the quality and relevance of Education Programs. This collaborative
arrangement, where universities get increased access to professional practice, real work
experiences, research assignments, joint development, increased learning and in turn
where they will be able to provide a plethora of other benefits, would certainly improve
the quality of University Education.
CREATING EFFECTIVE COLLABORATION: PREREQUISITES
For establishing, maintaining and implementing a successful collaboration, the institution has to
work on a series of prerequisites and conditions.
 Planning the Strategy: The first and foremost step towards a successful
collaboration is to form a think tank within the institution with specific goals such as
identifying the strengths of the institution, its weaknesses, identifying and creating a
rapport with other institutions that could be potential collaborators and then drafting a
80
‘strategy paper’ which would serve as a blueprint for the way forward. This strategy
paper should be open and developed out of introspection of the institution and dialogue
with other stakeholders and contributors.
 Drafting of the Agreement: Once the strategy of the proposed collaboration is in

place, the formal agreement in this regard needs to be drafted and accepted by both the
parties. Collaborative agreements must be drafted on the perceived mutual benefits of
both the parties, including clauses on the willingness and active participation of faculty
and students and clear policies on conflicts of interest between parties. The collaborating
partners, if required for the project, should maintain confidentiality. Once the agreement
has been executed, then the participants should take ownership of it and work towards
fulfilling the undertakings and promises made in it.
 Conducive Environment: Once the agreement has been executed, care should be
taken to create an environment conducive for university-industry collaboration. Clear
policies and guidelines need to be drafted within the scope of the agreement to create this
conducive environment. Efficient allocation and sharing of resources to take the
agreement forward, facilitation department in the university, strong network of
individual collaborators, focal points in the industry etc. need to be identified and
strengthened to take the agreement forward.
 Intellectual Property Issues: Collaborative researches being one of the important

facets of a collaborative agreement, intellectual property issues are bound to arise.
Intellectual property ownership should be negotiated with as much flexibility as possible
from both sides for mutual benefit.
 Trust: Trust between collaborators is a definite prerequisite for a successful

collaboration. Several misunderstandings leading to conflicts may arise in spite of well-
81
drafted agreements. When collaborating organizations build up trust, they develop
confidence in the abilities and expected behavior of their partners. Creating an
environment of trust and camaraderie by frequent communication, understanding of the
technical mission of the university and the business mission of the industry would help
tide over these situations.
 Assessment and Audit: Continuous assessment and audit of the ongoing

collaboration is a must to achieve synergy. The collaborators should encourage an
expedited process / mechanism for frequent communication, assessment and
examination on the progress and directions of the collaborative projects. Such a
mechanism of assessment and audit would not only keep the project moving but also
ensure its timely completion.
 Organizational Culture: The success of the transfer and management of

knowledge is positively associated with the degree to which the organizational culture is
supportive of learning, change and innovation. Extra effort is required in case of cross-
sectorial collaboration, since the collaborators may represent different organizational
cultures, backgrounds and missions. Under these circumstances, it is imperious for both
the parties to have a clear focus on what is to be achieved through such a collaboration
and to work towards the same with due respect for their partner’s institutional settings.
 Evaluation and Feedback: Creating a system of constant evaluation and feedback

on the progress of the collaboration is essential. This system would help in capturing all
the relevant information for correction and help in creating an effective collaboration.
82
PROBABLE AREAS OF COLLABORATION
This section of the paper outlines the probable areas of collaboration that can happen among
partners to create synergy in its operations:
 Education and Training: Periodic interaction by the university with the others,
particularly the industry, is required for creating customized training, internships,
dissertations in the industry, education of industry-sponsored persons etc. Practical
training where students are exposed to the working methods and requirements of jobs at
industry opined by many is the most effective way of knowledge transfer.
 Curriculum Enrichment: Universities and Educational institutions as prime

producers of knowledge should constantly strive to move away from knowledge for
academic purposes alone and move towards creating new knowledge with potential for
acceleration of a knowledge economy and knowledge society, and this is possible only by
allowing collaboration to enrich the current curriculums of the university.
 Faculty and Student Exchange Programs: Experiential learning opportunities

are available for the student as well as the faculty in lieu of collaboration with the
industry. These exchange programs provide a feedback mechanism to the university on
the essential competencies that the students would require while at the work place and
thus help in reducing the deficiencies of those competencies in university graduates. For
the faculty, these programs help to bridge the gap between theory and practice in their
area of expertise.
 Infrastructure: Collaboration on sharing of infrastructure is most suited in a country

like ours where there is an equal number of institutions established with state of the art
infrastructure and several others with lack of basic infrastructure. International
83
Infrastructure collaboration is also ideal for research in natural sciences, which would
entail investments in huge laboratories and expensive equipment. A collaboration aimed
at bridging this gap would help in making impressive progress in teaching and learning.
 Consultancy Services: Consultancy services provide the right space for

academicians to help the industry on expert advice, technical support for enhanced
industry performance, suggestions on increasing productivity and promoting innovation.
These consultancy services are mutually beneficial in the sense that from the point of
view of the university, consultancy services serve as an interesting source of revenue and
as an added advantage to the faculty engaged, as the faculty can bring the experience of
real work situation in the classroom thus bridging the gap between theory and practice.
 Research: Transferring knowledge through contract and/or collaborative research is the

prime motive behind collaboration today. Extant literature opines that Contract
researches are those research works conducted by a university on behalf of an industry as
per terms of agreement, and Collaborative research is understood as co-sponsored
research programs, where both, university and industry, contribute resources and share
the benefits of such collaboration proportionally to their contributions. Research, in
whichever form it may be, blends knowledge and experience to generate new knowledge
and requires to be encouraged by the collaborators.
 Academic and Professional event partnership: Higher Educational institutions

could enter into partnerships and associations, sometimes on a short-term basis for
hosting academic and professional events for the mutual benefit of all the collaborators.
 Extension Activities: Traditionally the system of universities was designed to

disseminate knowledge, which over the years evolved to include production of new
knowledge along with dissemination as its second mission. Recently universities have
84
begun to accept that universities have a role to play in the social development of the
nation too. For Higher educational institutions to unlock their social purpose and to open
up to the subaltern aspirations of society, collaborations with like-minded social
institutions and NGOs are imperative.
CONCLUSION
The education space is one, which should engage itself in continuous improvement as it prepares
people with new abilities and knowledge in an ever-changing environment, and collaboration
between Higher Education Institutions and the working world is an assured way of making this
possible. The mission of educational institutions can be convincingly achieved only if their
contributions spill over their frontiers into several other sub-systems of the larger national
system.
A perfect harmony between several knowledge institutions and the industry is essential for the
smooth functioning of various systems, and this harmony essentially demands a closer
partnership between the industry and academia. A disconnect between the various sectors and the
educational space would have a critical bearing on the total development of the nation at large.
Collaboration is a definite way of creating this connects between academia and the several
subsystems of the national system at large and thus contributing to National Development.
85

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A INTEGRATED BUSINESS PLAN ON “INSURANCE INDUSTRY “

Project submitted to the

METAS ADVENTIST COLLEGE

Accredited by NAAC ‘B’

In partial fulfillment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Under the Guidance of

THE NORTH EASTERN HILL UNIVERSITY (NEHU)

I, UJJAWAL AGARWAL, ID No. GA-001 hereby declare that the Entrepreneurship

If the words are considered as symbols of approval and token of acknowledgement

I express my sincere gratitude to Vineeta Chopra Project guide, Department of

I extremely appreciate the love, support, understanding and sustaining

On 16 September 2013, IRDA launched "insurance repository" services in India. It is a

 CDSL Insurance Repository Limited

 Institute of Insurance and Risk Management, Hyderabad, was established by the

 Pondicherry University offers an MBA in insurance management. Pondicherry

 BIMT is a graduate business school located in Greater Noida, established in 1988,

 As an industry, insurance is regarded as a slow-growing, safe sector for investors.

Types of Insurance Companies

 Property and casualty companies insure against accidents of non-physical

 Businesses require special types of insurance policies that insure against

 Some companies engage in reinsurance to reduce risk. Reinsurance is

PEST ANALYSIS AFFECTING INSURANCE INDUSTRY

 Political factors are represented by the influence of a political entity (party,

 Unemployment also affects insurance industry, because the unemployment

ii. Increased Economical Activity.

Mutual vs. Stock Insurance Companies

 Insurance companies are classified as either stock or mutual depending on the

 Worldwide, mutual insurance companies accounted for 26.7% of the market

 A stock insurance company is a corporation owned by its stockholders or

 A mutual insurance company is a corporation owned exclusively by the

 Management and the board of directors determine what amount of operating

What Is Insurance Float?

Insurance and Selling Financial Products

 This places insurance companies in direct competition with other financial

List of Life Insurance Companies in India

Life Insurance Corporation of India

Max Life Insurance Co. Ltd.

HDFC Life Insurance Co. Ltd.

ICICI Prudential Life Insurance Co. Ltd.

Aditya Birla SunLife Insurance Co. Ltd.

Pramerica Life Insurance Co. Ltd.

TATA AIA Life Insurance Co. Ltd.

Bajaj Allianz Life Insurance Co. Ltd.

SBI Life Insurance Co. Ltd.

Exide Life Insurance Co. Ltd.

Reliance Nippon Life Insurance Company

Sahara India Life Insurance Co. Ltd.

Aviva Life Insurance Company India Ltd.

PNB MetLife India Insurance Co. Ltd

Bharti AXA Life Insurance Company Ltd.

IDBI Federal Life Insurance Company Limited

Future Generali India Life Insurance Company Limited

Shriram Life Insurance Co. Ltd.

Aegon Life Insurance Company Limited.

Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited.

Edelweiss Tokio Life Insurance Company Limited

Star Union Dai-Ichi Life Insurance Co. Ltd.

IndiaFirst Life Insurance Company Ltd.

National Insurance Co. Ltd.

Go Digit General Insurance Ltd.

Bajaj Allianz General Insurance Co. Ltd.

Cholamandalam MS General Insurance Co. Ltd.

Bharti AXA General Insurance Co. Ltd.