STUDY ON

“A COMPARATIVE STUDY OF LIC AND ACKO GENERAL INSURANCE

LTD.”

A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETATION OF
THE DEGREE OF BACHELOR IN COMMERCE (BANKING AND
INSURANCE)
UNDER THE FACULTY OF COMMERCE
BY

RAHUL RAMAKANT CHAVAN

Roll No: - 09

UNDER THE GUIDANCE OF

Ms. SONIA MALLARAM

TOLANI COLLEGE OF COMMERCE

150-151, SHER-E PUNJAB SOCIETY,
ANDHERI (EAST),
MUMBAI-400093

April 2023
 Certificate

This is to certify that Mr. RAHUL RAMAKANT CHAVAN has worked and duly completed her/his
Project Work for the degree of Bachelor in Commerce (Banking and Insurance) under the Faculty
of Commerce in the subject of Project in Banking & Insurance and his project is entitled, “A
COMPARATIVE STUDY OF LIC AND ACKO GENERAL INSURANCE LTD.” under my
supervision.
I further certify that the entire work has been done by the learner under my guidance and that no
part of it has been submitted previously for any Degree or Diploma of any University.
It is her/ his own work and facts reported by his personal findings and investigations.

MS. SONIA MALLARAM

Name and Signature of
Guiding Teacher
Date of submission: ________
 Declaration by Learner

I the undersigned Mr. RAHUL RAMAKANT CHAVAN here by, declare that the work embodied
in this project work titled “A COMPARATIVE STUDY OF LIC AND ACKO GENERAL
INSURANCE LTD.” forms my own contribution to the research work carried out under the guidance
of Ms. SONIA MALLARAM is a result of my own research work and has not been previously submitted to
any other University for any other Degree/ Diploma to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly indicated as such and
included in the bibliography.
I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

Name and Signature of the learner

MR. RAHUL RAMAKANT CHAVAN
Certified by
Name and signature of the Guiding Teacher

MS. SONIA MALLARAM

 Acknowledgment

To list who all have helped me is difficult because they are so numerous and the depthis so
enormous.
I would like to acknowledge the following as being idealistic channels and freshdimensions in
the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance todo this
project.

I would like to thank my Principal, Dr. Vijaya Krishna for providing the necessary facilities
required for completion of this project.
I take this opportunity to thank our Coordinator Dr. Ishtiyaq Chiplunkar, for her moral
support and guidance.
I would also like to express my sincere gratitude towards my project guide
Ms. Sonia Mallaram whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my
project.
 INDEX

Sr. No. PARTICULARS Page No.

CHP 1 INTRODUCTION
1.1 INTRODUCTION OF INSURANCE 1
1.2 IMPORTANT COMPONENTS OF INSURANCE POLICY: 2
1.3 TYPES OF INSURANCE: 3-4
1.4 WHAT IS INSURTECH 4-5
1.5 THE KEY CHARACTERISTICS OF INSURANCE 5
1.6 THE ADVANTAGES OF INSURANCE 6-7
1.7 OBJECTIVES OF INSURANCE 7-12
PRINCIPLE OF INSURANCE 12-15
1.9 HISTORY OF LIC AND ACKO 15-17
1.1.0 OBJECTIVES OF LIC 18
1.11 FUNCTIONS OF LIC 18-19
1.12 MARKETING STRATEGIES OF LIC 19-22
1.13 MARKETING STRATEGIES OF ACKO 22-24
221.14 PRODUCTS OF LIC 25-26
1.15 PRODUCTS OF ACKO 27-28
CHP 2 RESEARCH AND METHODOLOGY
2.1 OBJECTIVES 29
2.2 HYPOTHESIS 29
2.3 RESEARCH PROBLEMS 30
2.4 RESEARCH DESGN AND METHODOLOGY 31-32
2.5 DATA COLLECTION 32-33
CHP 3 REVIEW OF LITERATURE 34-36
CHP 4 DATA ANALYSIS AND INTERPETATION
4.1 DATA ANALYSIS 37-62
CHP 5 CONCLUSION & SUGGESTION
5.1 FINDINGS 63
5.2 SUGGESTIONS 63
5.3 CONCLUSION 64
• REFERENCE 65
• BIBLIOGRAPHY 66
• ANNEXURE 67-69
 LIST OF CHARTS

FIGURE • Name
FIGURE • Gender
FIGURE • Age group
FIGURE • Occupation
FIGURE 4.1 Do you have an insurance policy?
FIGURE 4.2 How many insurances policy do you currently have?
FIGURE 4.3 What type of insurance do have?
FIGURE 4.4 Who influenced you to get an insurance policy?
FIGURE 4.5 What kind of insurance policy do have?
FIGURE 4.6 Where do you invest your savings?
FIGURE 4.7 Purpose of investment in insurance by respondents?
Which insurance providers premiums do you believe
4.8
FIGURE to be secure?
Responses about respondents’ preference for buying
4.9
FIGURE new insurance policies?
Is there any impact of advertisements and celebrities
4.1.0
FIGURE on the purchase behaviour of insurance products?
FIGURE 4.11 You are satisfied with which policy?
FIGURE 4.12 Which insurance do you recommend to others?
 LIST OF TABLES

TABLE •
Name
TABLE •
Gender
TABLE •
Age group
TABLE •
Occupation
TABLE I Do you have an insurance policy?
TABLE II How many insurances policy do you currently have?
TABLE III What type of insurance do have?
TABLE IV Who influenced you to get an insurance policy?
TABLE V What kind of insurance policy do have?
TABLE VI Where do you invest your savings?
TABLE VII Purpose of investment in insurance by respondents?
Which insurance providers premiums do you believe
VIII
TABLE to be secure?
Responses about respondents’ preference for buying
IX
TABLE new insurance policies?
Is there any impact of advertisements and celebrities
X
TABLE on the purchase behaviour of insurance products?
TABLE XII You are satisfied with which policy?
TABLE XIII Which insurance do you recommend to others?
 CHAPTER 1: INTRODUCTION

1.1 INTRODUCTION OF INSURANCE

DEFINITION OF INSURANCE

“Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific
contingencies or perils”

Insurance is an institution, which eliminates risk and which substitutes certainty for uncertainty. Insurance is
the protection of the economic value of assets.
The term ‘Insurance ‘ can be defined in both financial and legal terms . The financial definition focuses on
an arrangement that redistributes the cost of unexpected losses. That is, the collection of a small premium
payment from all exposed and distributed to those suffering loss.
What Is Insurance?
Most individuals have insurance of some type, whether it is for their life, their home, or their car. But, the
majority of us rarely pause to consider what insurance is or how it functions.
In a nutshell, insurance is a contract, symbolised by a policy, under which a policyholder receives financial
security or compensation from an insurance firm against losses. In order to make payments to the insured
more manageable, the company pools the risks of its clients.
Insurance policies are intended to protect against the possibility of monetary losses, large and little, that may
be brought on by harm to the insured or their property or by liability for harm or injury given to a third party.
1.1.1 INTRODUCTION OF LIFE INSURANCE: Life insurance is a contract for payment of a sum of
money to the person assured or failing him / her, to the person entitled to receive the same on the happening
of the event insured by the contract.
1
1.1.2 DEFINITIONS: Insurance Act, 1938 defines life insurance Sect 2 (11) of the business as the business
of effecting contract upon life. It includes: (a) Any contract whereby the payment of money is assured upon
death or the happening of any contingency dependent on human life.
Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific
contingencies or perils.

1.2 IMPORTANT COMPONENTS OF INSURANCE POLICY:

Understanding how insurance performs is important when choosing a coverage.

Your ability to select the policy that best meets your needs is greatly aided by having a solid grasp of these
ideas. A good example is whole life insurance, which may or may not be the best option for you. Premium,
policy limit, and deductible are the three most important elements of any kind of insurance.

PRIMIUM:
The premium is the cost of a policy, which is often represented as a monthly expense. Based on the risk
profile of you or your company, which can include creditworthiness, the insurer will decide on the premium.
For instance, you will probably pay more for an auto policy than someone who only owns one mid-range
sedan and has a spotless driving record if you own numerous pricey cars. Nonetheless, prices for comparable
policies may vary amongst insurers. In order to obtain the best pricing for you, you must do some research.
POLICY LIMIT:
The policy limit specifies the highest sum that an insurer will cover for a covered loss. Maximums may be
established annually or for the duration of the policy, per loss or damage, or during the policy’s lifetime,
commonly known as the lifetime maximum.
In general, larger limitations come with higher rates. The amount paid to a beneficiary upon the death of the
insured under a conventional life insurance policy is known as the face value, and it represents the maximum
sum that the insurer will pay.
2
What is Deductible?
Before the insurer covers a claim, the policyholder is required to pay a certain amount out of pocket, known
as the deductible. Large numbers of small and unimportant claims are discouraged by deductibles.
Depending on the insurer and the kind of policy, deductibles may apply to both individual policies and
individual claims. High out-of-pocket costs typically lead to fewer small claims, so policies with extremely
large deductibles are normally less expensive.

1.3 TYPES OF INSURANCE:

HEALTH
INSURANCE

TERM LIFE HOME

INSURANCE INSURANCE

TYPES OF
INSURANCE

TRAVEL VEHICLE
INSURANCE INSURANCE

FIRE/MARINE
INSURANCE

Insurance comes in a wide variety of ways. Let’s analyse the most important role first.

1. HEALTH INSURANCE:
Those who have ongoing medical conditions or require constant medical care should search for health
insurance packages with lower deductibles. While having a higher annual premium than a similar coverage
with a larger deductible, the trade-off may be worth it if it means having less expensive access to medical
care all year long.

3
2 HOME INSURANCE:
Your house and possessions are protected from harm or theft by homeowners’ insurance, sometimes referred
to as “home insurance.” Almost all mortgage lenders demand that borrowers have insurance coverage for the
full or fair market value of a property (often the purchase price) and won’t approve a loan or finance a
residential real estate transaction without seeing proof of it.
3. VEHICAL INSURANCE:
It’s crucial to safeguard your investment when you purchase or lease a car. Having auto insurance can give
you peace of mind in the event that you are in an accident or that your car is stolen, vandalised, or suffers
natural disaster damage. People make annual payments to a car insurance company instead of paying for
auto accidents out of pocket, and the business then covers all or the majority of the costs related to an
accident or other vehicle damage.
It’s crucial to safeguard your investment when you purchase or lease a car. Having auto insurance can give
you peace of mind in the event that you are in an accident or that your car is stolen, vandalised, or suffers
natural disaster damage. People make annual payments to a car insurance company instead of paying for
auto accidents out of pocket, and the business then covers all or the majority of the costs related to an
accident or other vehicle damage.
4.TERM LIFE INSURANCE:
A contract for life insurance exists between the policyholder and the insurer. In return for the premiums paid
by the policyholder throughout their lifetime, a life insurance policy promises that the insurer will pay a
certain amount to designated beneficiaries when the insured passes away.
5.TRAVEL INSURANCE:
Travel insurance is a type of insurance that covers the costs and losses associated with traveling. It is useful
protection for those travelling domestically or abroad. According to a 2021 survey by insurance company
Battle face, almost half of Americans have faced fees or had to absorb the cost of losses when travelling
without travel insurance.
Which Insurance is DIGITAL?
The term “digital insurance” refers to an insurance service made available online or through a mobile
application. For the purpose of creating and calculating prices for insurance, these platforms combine live
customer interaction with computer algorithms. Digital insurance businesses offer a wide range of coverage
choices and products, including auto insurance, home and renters’ insurance, life insurance, and even
healthcare packages.
While some of these businesses are more recent, stand-alone startups, many digital insurance providers are
actually owned and funded by long-standing, reputable, and well-known names in the insurance sector.
1.4 What Is Insurtech?
It is hardly surprising that insurance is following the current trend towards technology, which permeates
practically every element of modern life. Insurtech is a term used to describe these technologies, which are
created to help consumers save time, effort, and money on their insurance policies.
No matter where you are in the world, modern insurtech businesses make it simpler than ever to look for
coverage, compare costs, manage policies, and even file claims. Naturally, they also significantly reduce the

4
 amount of human interaction in the sector and pose certain issues with privacy and the intrusiveness of some
insurtech companies’ mobile platforms.

What will digital insurance cost?

In addition to the customised nature of insurance in general, each insurance company will continue to have
its own underwriting procedures and algorithms. So, it’s difficult to estimate how much you should budget
for digital insurance.
Having said that, many customers do tend to save money when using insurtech. That’s because the majority
of these businesses employ digital platforms and algorithms to underwrite their policies, which substantially
lowers their expense. Furthermore, because many of these businesses have few or no physical locations, they
incur significantly lower operational costs.

How We Choose Online Insurance Providers?

We examined between three and 10 digital insurance firms for each category before deciding on the best
one. Ratings for financial soundness, customer feedback, and consumer complaint indices in comparison to
the national average were also taken into account. When making our decisions, we also took into account
pricing, availability across the nation, and mobile access.

1.5: The key characteristics of insurance include the following:

Using an insurance policy as a risk management strategy to protect against an unforeseen loss
• Insurance coverage cannot lessen the severity of a potential loss. It just ensures that the loss is dispersed and
shared among many people.

• A company that provides insurance pools the risks of its various customers. Thus, they split the premium
costs. So, the money claimed when one or a few suffer financial losses is given from this accumulated fund.
As a result, each client must pay a little cost.

• Depending on the type of insurance, it may be possible to obtain coverage for things like medical costs,
vehicle damage, property loss or damage, etc.

• The three major elements of an insurance coverage policy are the premium, policy limit, and deductible.
While purchasing an insurance policy, the policy buyer should carefully examine them.

5
1.6 The advantages of insurance coverage:
The functions and advantages of an insurance policy are numerous. The following list includes some of its
most important primary benefits as well as some of its secondary and other benefits. The three main
purposes of insurance are as follows:

1. It offers protection.
The impact of loss that one experiences in dangerous conditions is lessened by insurance coverage. In times
of financial hardship, it offers compensation in cash. In addition to shielding the insured from financial
difficulties, it also aids in reducing any accompanying mental stress.
2. It offers certainty.
The policyholders feel more secure knowing they are covered by insurance. For this future-beneficial
assurance, the insured pays a modest amount of their income. Hence, there is a guarantee of generous
financial aid in exchange for the premium. When dealing with mishaps, dangers, or other weaknesses, it will
protect the policyholder.
3. Sharing of Risk
Insurance is a cooperative system just by virtue of the way it works. The capital of an insurance company
would not be able to cover the payment. Because it protects a lot of people who are exposed to danger, an
insurance business combines collective risks and premiums. Out of this fund, compensation is given to the
person who claims insurance coverage. As a result, the risk of the policyholder who really sustained the loss
is shared by all policyholders.
4. The Cost of Risk
Insurance policies evaluate the quantity of risk and also foresee its numerous root causes. On the basis of
risk value, it assesses the quantity of insurance coverage and the premium payment amounts. It provides
protection from unexpected events and resulting losses.

The following were the main advantages of an insurance policy. In addition to the general advantages, it
also serves the secondary purposes listed below, among others:

1.Capital Generation
The insurance company’s pooled investments are made from the money raised by the various premiums. The
insurers place this one-time payment in instruments used in the money market. Use stocks, mutual funds,
and other profitable avenues as examples. As a result, the business is able to make money and profit. For the
corporation, it protects against capital loss.

2. Economic Growth
Insurance plans mobilise domestic savings to offer financial stability. It also focuses on loss mitigation due
to harm or devastation to the covered community. By using the fund, it not only equally distributes the risks
but also fosters trade and business.

6
3. Saving Habits
Insurance plans aid in forming people’s saving behaviours. A percentage of their salary is kept for premium
payments that serve as insurance against unforeseeable future problems. A lot of insurance policies also
function as investment or savings plans. People are so much more encouraged to invest and save.

1.7 Objectives of Insurance:

1. Providing Protection for Individuals:

The main objective of insurance is to provide protection for individuals against losses and disasters. It is a
contract that two parties enter into wherein one pledges to guard against losses for the other in exchange for
a premium paid by the other party. The insurance company is one party, while the insured party is another.
Insurance firms promise the insured compensation in the event of any unfavourable scenario. In order to get
the promise of compensation, insured parties must pay premiums to insurance firms.
2. Minimization of losses:

7
The goal of insurance is to reduce losses brought on by potential risks and unforeseen circumstances. It
increases the certainty of payments to persons for the occurrence of ambiguous occurrences. Individuals are
assured by insurance that their losses will be compensated. Through careful planning and management, it
reduces the danger. The installation of fire detection equipment, alarm systems, and video systems are only a
few safety precautions that insurance companies advise individuals to take. Also, they collaborate with other
organisations that aim to minimise losses and damages, such as the fire department, the health department,
and other groups. Insurance aims to reduce the likelihood of certain losses occurring in this way.

3. Reduces the Anxiety And fear.

8
Individuals are freed by insurance plans from all anxiety and dread related to potential dangers and
uncertainties. It ensures reimbursement in the event of any unfavourable circumstances. For stressed and
anxious people, the assurance of compensation is the most calming element. Despite the occurrence of many
unpredictable circumstances, they are certain of payment. They become more self-assured as a result, and
they give their tasks their entire concentration.

4. Mobilises the savings.

Another essential goal of insurance is to mobilise savings. By offering customers a variety of insurance
products that guarantee reimbursement for losses, it entices people to make investments. To protect
themselves against losses and damages, a large number of people purchase this insurance policy. The
premiums that insurance companies constantly charge their policyholders are a significant source of revenue
for them. Next, in order to generate income, these organisations invest these funds in securities and stocks on
the market. Insurance businesses use the best available resources with the public as sources of revenue.

5. Capital Formation.

9
By obtaining significant amounts of money from the general public, insurance businesses generate capital.
They often charge their larger customers a surcharge to shield them from losses. By purchasing company
shares, these monies are allocated for industrial development. Because the insurance sector invests in
businesses to generate dividends and other income, it may provide businesses with the capital they need.
This improves the performance of the economy and industries in the nation. Also, larger investments result
in the development of numerous employment prospects.

6. Death benefit:

If the insured person has a terrible outcome, life insurance can protect the insured’s family and themselves.
The insurer pays a payment equal to the sum assured specified in the contract plus any potential incentives.

7. Investments & Insurance

Certain life insurance policies provide the two beneficial advantages of insurance and investment. Simply
put, this means that a portion of your payment is invested in debt, equities, etc. and a portion is used for

10
insurance. You undoubtedly get the best of both worlds with a robust protective covering and increased
investment returns.

8. Maturity Benefits:
Double Your Savings By providing maturity benefits, a life insurance policy also serves as a tool for saving
money. The complete amount of premiums is reimbursed when the policy reaches maturity if the
policyholder lives out the policy period without making any claims.

9. Save Taxes:

Another advantage of buying a life insurance policy is that you will save taxes. You are eligible to get tax
advantages under Section 80C of the Income Tax Act of 1961. Simply put, you are able to deduct up to Rs.
1,50,000 in taxes from any premium payments you make for your life insurance policy. Additionally, any
benefits you receive from your life insurance policy will be completely tax-free according to Section 10(D).
If you decide to add a second health-related rider, you may be eligible for tax deductions under Section 80D
of the Income Tax Act.

10. Liability cover:

provide coverage Dealing with such liabilities can result in a significant financial as well as mental burden,
whether it be a credit card debt, a loan for your children’s school, a loan to start a business, or a retirement
plan. Such responsibilities might become even more difficult to manage when there is no reliable source of
income. You therefore need a sizeable quantity of financial support, which life insurance may simply
provide, in order to achieve your key ambitions.

11
11. Enhance your life insurance with RIDER’S:
The riders that come with a life insurance policy include things like a Critical Illness Rider, an Accidental
Death Rider, a Cashless Treatment Rider, etc. In situations where standard life insurance coverage may not
be necessary, they offer additional security to the people and their families.

1.8: PRINCIPLE OF INSURANCE

1. PRINICIPLE OF ALTIMATE GOODFAITH

2. PRINICIPLE OF INSURABLE INTEREST

3. PRINICIPLE OF INDEMNITY

4. PRINICIPLE OF SUBROGATION

5. PRINICIPLE OF CONTRIBUTION

6. PRINICIPLE OF PROXIMATE CAUSE

7. PRINICIPLE OF LOSS MINIMIZATION

.
CA

Principle 1: principle of ultimate good faith:

The pillar of insurance is the principle of ultimate good faith. All common law systems’ insurance laws
contain the maxim “ultimate good faith,” or “uberrimae fides.” A contract for insurance is one that is made
in the best possible faith. The doctrine, as it has been interpreted in England, states that the prospective
insured must accurately disclose to the insurer everything he knows and that is or would be material to a
reasonable insurer. This is the doctrine’s most important expression of the principle.

12
Everything that would affect how a responsible insurer decides whether or not to write a risk and, if so,
under what conditions, is considered relevant. The insurer may avoid (or "rescind") the policy, which means
that the insurer may treat the policy as having been null and void from the beginning and return the premium
paid if the insurer is not provided with all material information concerning the risk or if a major
misrepresentation is made.
To put it simply, an insurance contract requires more honesty than other contracts do. Insurance applicants
are typically required to be honest. The legal theories of representation, concealment, and warranty serve as
its three pillars. This rule states that the insurance agreement must be executed by the insured and the insurer
in complete good faith. For the benefit of each party to the contract, both parties must make all important
information known. A contract is voidable if it was entered into with false information or without disclosure
of a material fact.

Principle2: Principle of Insurable Interest:

An insurable interest in the asset or person insured must be held by the person purchasing the insurance
policy. If a person benefits from a piece of property’s existence and stands to lose from its destruction, that
person is said to have an insurable interest in that piece of property. A legal prerequisite is the presence of
insurable interest. So, if there is no insurable interest, an insurance contract is not legitimate legally and
cannot be enforced in court. This rule is intended to keep insurance from turning into a gambling
arrangement.
It has long been believed that insurable interest is morally required for insurance contracts in order to
distinguish them from gambling agreements, which are only enforceable “in honour,” and to stop the
practise of buying life insurance on strangers’ lives in the seventeenth and eighteenth centuries. For life
insurance policies, an insurable interest must be present at the time of policy creation but not at the time of a
loss (death).
This principle states that the insured must be able to bear the financial consequences of a loss. By purchasing
property insurance and watching for a loss to happen, this theory aids in the prevention of
gambling. Contracts for life insurance lessen the moral hazard that results when someone buys life
insurance on someone and then wishes for their demise in order to collect the insurance proceeds.

Principle3: Principle of Indemnity:

The indemnity principle, which states that the person who suffers a financial loss is placed in the same
financial position after the loss as before the loss happened, is the fundamental tenet of insurance. He neither
gains from the loss nor suffers from it. In actuality, life insurance makes it far more challenging to
accomplish this than property insurance. No life insurance company would offer coverage that was blatantly
greater than the projected economic value of the life being insured. The rule of indemnification is recognised
by limiting the amount of life insurance sold to represent economic worth. Likewise, the insurance covering
the insured’s life may only be properly owned by parties who are exposed to the potential loss.
All types of insurance plans, with the exception of life insurance, are subject to the indemnity principle.
Indemnity is the provision of security, protection, and recompense against loss, harm, or damage. The
insurer promises to assist the insured in regaining their financial standing prior to the loss. Every time
property is lost, the loss is made up for. Both the loss incurred and the compensation due should be
quantifiable in monetary terms. The insured will only receive compensation up to the amount of his actual
loss. He won’t benefit financially from the contractor. The maximum amount of compensation will not
13
exceed the policy’s fixed value as of the contract’s signing. To hold that an insured may not collect more
than his actual loss, the courts depend on the indemnity principle.

Principle4: Principle of Subrogation:

Subrogation refers to the act of another taking the place of one creditor. The idea of subrogation is an
expansion and additional corollary of the idea of indemnification. That also applies to all indemnity
agreements. According to the subrogation concept, the insurer gains ownership of damaged insured property
when the insured is made whole for his losses as a result of such damages. It is important to note that the
insurer’s right of subrogation only applies to the rights and remedies available to the insured with regard to
the subject matter of the insurance contract and that it only becomes active once the insurer has paid for the
loss for which he is responsible under the policy.
In all insurance types except life insurance, the subrogation principle is applicable. If the insured party
receives payment for the damage he experienced, he is not permitted to make a claim against another party
for the same amount of loss. It forbids the insured from receiving reimbursement from two sources for the
same loss.

As a result, the subrogation principle allowed the insurer to take the position of the insured in order to seek
compensation from a third-party offender for a loss that the insurer had already paid for. It also serves to
hold the irresponsible party responsible and lower insurance prices by preventing the insured from collecting
twice.

Principle5: Principle of Contribution:

Occasionally, a property is covered by insurance from multiple providers. The maximum amount that the
insured may recover from all insurance carriers combined is the total loss. Several insurance companies
won’t accept his claim for the same loss. If one insurer pays the full amount of the damages, that insurer is
then entitled to proportionate compensation from the other insurers. It is impossible to put a person in a
better situation than they were before the loss. Several businesses will contribute to the overall loss incurred
by the insured in proportion to the value of the policies they have issued.
A counterpart of the indemnity concept is the idea of contribution. If the insured has obtained more than one
policy on the same subject matter, it is applicable to all indemnity contracts. This principle states that the
insured may only seek compensation from one insurer or all insurers to the extent of the actual damage. If
one insurer covers the entire number of damages, that insurer may make proportionate claims against the
other insurers.

Principle6: Principle of Proximate Cause:

The principle of proximate cause states that when a loss is brought on by multiple factors, the closest or most
nearby factor should be taken into account for determining the insurer’s responsibility. When the loss was
caused by a chain of events, this principle is quite helpful. According to the principle, the proximal (closest)
and not the remote (farthest) must be investigated in order to determine whether the insurer is responsible for
the loss or not.
14
The proximate cause principle does not, however, apply in the case of life insurance. The insurer is
responsible for paying the insurance sum, regardless of the cause of death.

According to this rule, a court looks for the major reason—which may not always be the last event that
happened right before the loss—that sets the chain of events leading to the loss in order to assess if it was
caused by a cause covered by an insurance policy.

Principle7: Principle of Loss Minimization:

The insured must constantly make every effort to reduce the loss of his insured property in the event of
abrupt catastrophes like fire, etc., in accordance with the Principle of Loss Minimization. The insured party
is required to take all necessary actions to contain and lessen the losses and preserve what is left. As a result
of this approach, the insured is more cautious with regard to the insured property, acting as any sensible
person would under the circumstances. If he does not, the insurer may be entitled to avoid paying for any
losses that are attributable to his carelessness. Yet, it is important to keep in mind that while the insured is
required to give his all for his insurer, he is not required to do so at the cost of his life.
Simply because the property is insured, the insured cannot neglect or act recklessly in such situations. So, it
is the insured’s duty to safeguard his insured goods and prevent further losses.

1.9 History of Life Insurance corporation of India and ACKO:

Life Insurance corporation of India:

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insurance
Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the
insurance companies established during that period were brought up with the purpose of looking after the
needs of European community and Indian natives were not being insured by these companies. However,
later with the efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started
insuring Indian lives. But Indian lives were being treated as sub-standard lives and heavy extra premiums
were being charged on them. Bombay Mutual Life Assurance Society heralded the birth of first Indian life
insurance company in the year 1870, and covered Indian lives at normal rates. Starting as Indian enterprise
with highly patriotic motives, insurance companies came into existence to carry the message of insurance
and social security through insurance to various sectors of society. Bharat Insurance Company (1896) was
also one of such companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise to
more insurance companies. The United India in Madras, National Indian and National Insurance in Calcutta
and the Co-operative Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative
Insurance Company took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath
Tagore, in Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were
some of the companies established during the same period. Prior to 1912 India had no legislation to regulate
insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund Act were
passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tables and
periodical valuations of companies should be certified by an actuary. But the Act discriminated between
foreign and Indian companies on many accounts, putting the Indian companies at a disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business. From 44 companies
with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total business-in-force as
15
Rs.298 crore in 1938. During the mushrooming of insurance companies many financially unsound concerns
were also floated which failed miserably. The Insurance Act 1938 was the first legislation governing not
only life insurance but also non-life insurance to provide strict state control over insurance business. The
demand for nationalization of life insurance industry was made repeatedly in the past but it gathered
momentum in 1944 when a bill to amend the Life Insurance Act 1938 was introduced in the Legislative
Assembly. However, it was much later on the 19th of January, 1956, that life insurance in India was
nationalized. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident were
operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the
management of the companies was taken over by means of an Ordinance, and later, the ownership too by
means of a comprehensive bill. The Parliament of India passed the Life Insurance Corporation Act on the
19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the
objective of spreading life insurance much more widely and in particular to the rural areas with a view to
reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.

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

Today LIC functions with 2048 fully computerized branch offices, 113 divisional offices, 8 zonal offices,
1381 satellite offices and the corporate office. LIC’s Wide Area Network covers 113divisional offices and
connects all the branches through a Metro Area Network. LIC has tied up with some Banks and Service
providers to offer on-line premium collection facility in selected cities. LIC’s ECS and ATM premium
payment facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS, Info Centres
have been commissioned at Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi,
Pune and many other cities. With a vision of providing easy access to its policyholders, LIC has launched its
SATELLITE SAMPARK offices. The satellite offices are smaller, leaner and closer to the customer. The
digitalized records of the satellite offices will facilitate anywhere servicing and many other conveniences in
the future.

LIC continues to be the dominant life insurer even in the liberalized scenario of Indian insurance and is
moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one crore
policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies by 15th
Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previous year.

From then to now, LIC has crossed many milestones and has set unprecedented performance records in
various aspects of life insurance business. The same motives which inspired our forefathers to bring
insurance into existence in this country inspire us at LIC to take this message of protection to light the lamps
of security in as many homes as possible and to help the people in providing security to their families.

16
ACKO:
ACKO General Insurance is one of India’s leading digital insurance providers with its entire operations
offered through the digital platform.
Acko – Tagline, Slogan and Logo
Going by the website, Acko’s general tagline is “Insurance made easy: Zero commission. Zero paperwork.”
In order to create awareness, Acko has run a campaign with a tagline, Full Paisa Wasool. The meaning of
which is complete value for money insurance.
Acko was founded by Varun Dua and Ruchi Deepak in 2016 as the first digital insurance service provider in
India. The cumbersome, boring, and non-transparent process that people have to undergo even when it
comes to the insurance of simple products like automobiles were some of the primary things that Varun and
Ruchi wanted to target, which eventually led to the foundation of Acko.
Talking about the insurance industry, co-founder Ruchi said, “One of the biggest flaws is the price point of
these products”.
They started in 2016 as India’s first digital insurer, and are currently the fastest growing insurance company
in the country. In a span of three years, they have revved up insurance with technology and given it a snazzy
makeover— they taken it online, wiped out much of the paperwork associated with it, created products that
are a cut above the ho-hum, and sold them to over 50 million unique customers.
All this jazzing up has been brought about by our team that is obsessed with making insurance effortless.
This team has grown from a small huddle of 6 when they started, to a clan of more than 400 now. And this
eclectic clan—comprising everyone from coders who double up as comics to finance whizzes who slay at
karaokes—is responsible for other great feats too.

Partners – ACKO
Like winning us incredible partners. In the past few years, we have partnered with some of the best
businesses in the digital world. Ola, redBus, Amazon and OYO are some of the popular partners alongside
whom we’ve launched innovative products like trip insurance, electronics cover and hotel-stay insurance.
These bite-sized product offerings have received much love from our customers and even ushered in awards.

About Us ACKO – OLA Partnership

Our micro-insurance product—Ola Trip Insurance, which insures cab passengers, was awarded the Golden
Peacock Innovative Product last year;
Financial Express chose us as the winner in their Insurance and Savings category the same year; LinkedIn’s
list of Top Start-ups features us regularly and now as we feel that we’ve bragged enough, let’s move on.
We’re a driven team working towards improving every aspect of insurance. Be it pricing, purchase, or
claims—we’re amping it up with data and tech. We offer customised prices, instant policy, super-quick
claim settlements, and are ceaselessly pushing forward to make insurance as friendly as a smile. Besides our
collective passion for customer convenience, we’re propelled by the love and support of our customers and
investors. Speaking of investors—allow us to indulge in a little name-dropping—we’re backed by bigwigs
like Amazon, Accel Partners, Catamaran Ventures, Elevation Capital, RPS Ventures, and Mr. Binny Bansal.
Now that you know us a little better, explore our website, products and maybe get yourself a new age
insurance.

17
 1.9.1 Objectives of LIC of India:

1. Spread Life Insurance widely and in particular to the rural areas and to the socially and economically
backward classes with a view to reaching all insurable persons in the country and providing them
adequate financial cover against death at a reasonable cost.

2. Maximize the mobilization of people’s savings by making insurance-linked savings adequately

attractive.

3. Bear in mind, in the investment of funds, the primary obligation to its policyholders, whose money it holds
in trust, without losing sight of the interest of the community as a whole; the funds to be deployed to the best
advantage of the investors as well as the community as a whole, keeping in view national priorities and
obligations of attractive return.

4. Conduct business with utmost economy and with the full realization that the money belongs to the
policyholders.

5. Act as trustees of the insured public in their individual and collective capacities.

6. Meet the various life insurance needs of the community that would arise in the changing social and
economic environment.

7. Involve all people working in the Corporation to the best of their capability in furthering the interests of the
insured public by providing efficient service with courtesy.

8. Promote amongst all agents and employees of the Corporation a sense of participation, pride and job
satisfaction through discharge of their duties with dedication towards achievement of Corporate Objective.

1.9.2 Functions of LIC:

1. The main function of LIC is to collect the savings of the people through a life insurance policy and invest
that money in various financial markets.

2. One of the main functions of LIC is to invest fund into government securities so as to protect the capital of
the people who have given their money to LIC.

3. LIC has to issue an insurance policy at affordable rates to people.

4. LIC provides direct loans to industries at lower interest rates. The rate of interest is as low as 12% for the
entire tenure.

5. It is one of the major stakeholders in many of the blue-chip companies in the Indian stock market.
18
6. It also provides refinancing activities through SFCs in different states and cities.

7. It also invests in the various corporates via bonds and securities, thus supports corporate funding in an
indirect way.

8. It also gives loan to the various national projects which are important for economic growth.

9. It provides financial supports to socially-oriented projects like electrification, sewage, and water
channelizing, etc

10. It also gives a housing loan at reasonable rates.

11. It is the main channel between savings and investment for the people in India.

1.10 MARKETING STRATEGIES OF LIFE INSURANCE CORPORATION OF INDIA:

LIC offers a very vast and huge range of diversified products catering to the needs of various sections of
people in India and outside of India. It offers individual solutions considering their specific financial
requirement and risk profile and helps to solve it.
Now, let’s have a look at the marketing mix of LIC.

Marketing Mix of LIC

The marketing mix of LIC is consists of 7Ps, but here we are discussing major 4 strategies, which are:
1. Price
2. Product
3. Place
4. Promotion
19
• Price/Pricing Strategy of LIC.
The main objective of LIC is to offer enough financial cover at a reasonable and affordable cost to all
insurable persons. LIC’s product range is as vast as its price range.
On the official website, there is a ‘premium calculator’ service where the premium for each scheme of LIC
can be calculated which is dependent on age, term, and sum assured. Payment of the premium can be done
by cash, cheque, or depositing in the cash counter of any LIC branch.
For the ease of the customers, a premium can be paid through the official website of the company. As for the
tax, the rate will be different for different schemes.

• Product Strategy of LIC

Insurance is mainly taken out to provide for the family members in case of death by natural causes or
accidents. LIC has designed several products according to the requirements of the common people, which
are as follows:
1. Life Insurance
2. Investment Management
3. Health Insurance
4. Mutual Fund
5. Property Insurance
6. Auto Insurance
7. Home Insurance
8. Casualty Insurance
9. Liability Insurance
10. Credit Insurance
Besides this, LIC has various pension plans, group schemes, and special plans for the benefit of the
customers. LIC-Life Insurance has also launched different products for children, women, senior citizens, and
differently-abled persons.

• Placing Strategy of LIC

LIC currently has eight zone offices, 109 divisional offices, 992 satellite offices, 2,048 branches, and a large
number of corporate offices. It also boasts a network of 242 corporate agents, 1,337,064 individual agents,
79 referral agents, and 98 brokers that have ties to 42 banks. LIC- Life Insurance is a service industry, the
distribution of its products is done through various channels – directly or indirectly. Many routes are taken to
reach the potential customer and the most important and basic channel member until this date has been the
“Insurance agent”.
Physical delivery of service items, in this case, finances, and support, at the correct time and location, is a
key component of LIC’s marketing strategy. The organization’s channel of distribution consists of different
agents, brokers, development officers, retail services related to finance, branch office, alliance with banks
and distributors, corporate agencies, and proper and well-maintained infrastructure.

• Promotion Strategy of LIC

The promotional strategy of LIC is straightforward. Its main aim is to keep consumers updated about its
various policies and its brand. To fulfil this, it has taken steps like exhibitions, personal selling’s,
demonstrations at events, new schemes, and advertising.
They had also distributed some stationery like diaries, calendars as gifts, and incentives to the policyholders.
As promotional activities, advertisements are presented on televisions, newspapers, and billboards.

20
 A mobile van is used to create awareness programs across the rural areas of the company. LIC-Life
Insurance has a website and a webpage where it provides extensive information on any conceivable query in
order to satisfy customers.
The majority of advertising is driven towards insurance which can be purchased by the common man to
increase the reach of the company and at the same time, the sale of the product. Thus, the major objective of
all the advertising and promotion was brand retention.
Because this is a service marketing brand, here are the other 3Ps to complete the LIC 7Ps marketing mix
(Life Insurance Corporation of India).
• People
• Process
• Physical Evidence

SWOT Analysis Of LIC

The strengths and weaknesses of Life Insurance Corporation of India (LIC) are considered internal elements,
while opportunities and threats are considered external factors in a SWOT analysis.

1. Strength
• In India, it is the most reputable insurance firm.
• Customer satisfaction and after-sales service in the long-term plan hold much importance.
• Created employment opportunities for more than 1,15,000 people
• Has around 2000 branches across India and 10,00,000 agents and worldwide

2. Weakness
• There is very little innovation since it is a government-owned organization
• Gets affected by bureaucracy and fraud
• It becomes difficult to manage the huge workforce in times of economic crises

3. Opportunity
• With the use of modern technology, it can provide good service in the urban areas and widen its connection.
• Proper government schemes should be implemented

4. Threats
• Economic crisis
• New NBFCs are entering the market.
• Varying Govt policies

Now, let’s have a look at the competitors of LIC.

21
 Competitors of LIC:

In this era, many insurance companies of different types have been established to provide facilities to the
public. But the company that stood out from the rest of the crowd is LIC. Many of them come and go but
LIC is there and always will be.
The top 3 competitors of LIC are:
• SBI Life Insurance
• Sahara Life Insurance
• HDFC Standard Life
And from the above all competitors, LIC is the market leader covering 66% of the market.

Marketing Strategy of Acko General Insurance:

As Acko General Insurance was just a startup before 2020, the first step Acko was to increase its brand
awareness and reach out to the right audience and that’s when Disney + Hotstar agreed to collaborate with
Acko General Insurance and this collaboration was a great marketing strategy and the opportunity was
coming their way, as the IPL (Indian Premier League) was just going to begin, this strategy will further be
explained.

Segmentation
Marketing is the process of breaking your target market into approachable groups. This segmentation is
based on key markets which the company wants to target, the main target audience of Acko general
insurance was certain cities that were economically well developed.

Targeting

22
 In targeting the main aim is to select the most attractive segments to focus your marketing on. Acko General
Insurance companies’ main aim or target was to reach more people within the segment which we have
mentioned before which is Economically developed cities.
And that’s when Disney + Hotstar collaborated with Acko general insurance and gave an offer of promoting
their advertisements during the streaming of IPL (Indian Premier League) in specific cities which was an
added advantage because it would reach the specific target region and target audience to proliferate their
brand message gaining 47 million unique customers thus meeting their objectives successfully.

Positioning
It is the act of designing a company’s product or image in a distinctive way such that it influences the mind
of the target audience as well as the target market. Some of the key images which Acko general insurance
has created in the market to stay different from other sources are:
• NO PAPERWORK NEEDED
• NO BROKERAGE PAID

Time Nahi Lagega

Acko has launched a new marketing campaign ‘Time Nahi Lagega’ to highlight the company’s quick claim
settlement. The campaign was launched to counter the general perception of insurance claims being a
complicated and time-consuming process. The company through this campaign wanted to communicate that
the insurance claim process through their company is instant and not complex. They communicate this by
comparing the time taken to claim their insurance with situations occurring in daily life. This has worked
brilliantly for them as it is relatable and funny and also communicates product differentiation effectively.

Murgi Pehle Aaya Ya Anda?

This was one of the iconic advertisement videos in history, where a hen asks a man to take the car insurance
from Acko itself. As Acko grew from being India’s first digital insurer to India’s fastest growing insurance
company. It is better to go for Acko for insurance purposes. This was the advertisement video of Acko trying
to notify the best among all and save up to 50,000.

Blind date with Acko

While the world is full of gender stereotypes, Acko started to think and question by blinding the people and
giving the horrible car drive. After all, they questioned everyone who do you think they took a drive with?
85% of the people answered the opposite gender. In the end, they knew their same gender took them for a
drive. The theme of the video was to be aware that people who let stop the biases, and gender shouldn’t have
anything to do with driving. The video got plenty of views because of the content and its marketing strategy.

SEO Strategies

SEO is an organic process through which we get our website to rank higher up on any search engine for
higher visibility. In today’s day and age, it is very essential to stay visible on the search engine because that
is where most of the buying and selling happens. Let us first understand the metrics with which we measure
23
the success or failure of the SEO strategy of a firm. The number of organic keywords – below 500 is bad,
above 1000 is good, 10,000+ is amazing. The number of organic keywords here is 90,500 therefore we can
say that the SEO strategy of Acko General Insurance is really amazing.

Influencer Marketing

Influencer Marketing is a type of social media marketing where an influential person collaborates with a
brand to promote something. Acko insurance launches its brand new campaign highlighting the main feature
that is ‘Zero commission premium. Acko General insurance features one of the popular Bollywood actors
Arshad Warsi as the face of the campaigns along with some of the Mumbai Indian players. The campaign
targets to raise awareness of there being a better and simple way to buy insurance from Acko. The tagline’
Acko app check kar lo delivers a straightforward message and a call to action to experience the benefits first-
hand.
Acko insurance company has signed on as an associate sponsor for three IPL teams namely- Gujarat Titans,
Kolkata Knight Riders, and Lucknow Supergiant. Where they will sport the Acko logo.
Therefore, we can say that Acko’s marketing strategy involves a great deal of influencer marketing and we
can also say that the influencer marketing strategy of Acko is focused and aligned with its goals and
objectives are broad to raise Acko’s awareness among its target consumers.

E-Commerce
Acko also has its website through which it sells cars, taxis, bikes, and health insurance. It is a very user-
friendly website. As soon as we go on their page, we get an option to enter details and based on these details
we get quotes on the price of various insurance policies. To start buying insurance on Acko we need to
register ourselves and sign up and we are good to go. We can buy, claim and renew our policies from the
website itself and it is instantly done without having to wait.

Mobile Application
Acko general insurance has a mobile application called ‘Acko Insurance’, available both in the Play Store as
well as App Store. It can be downloaded free of cost and it is highly effective and user-friendly. They have a
rating of 4.6/5 on the Play Store for over 72,037 reviews. More than 1 million people have downloaded the
app which is a very good number. The best aspect is that the team from Acko reaches out to people facing
any type of query as mentioned in the comments section and they don’t shy away from negative comments
or feedback. This is an excellent sign that the company is open to criticism.

Content Marketing Strategies

Acko General Insurance company has launched its latest digital marketing campaign showing slice life
situations where two friends get into a conversation offering low car insurance premiums offered by Acko
insurance company.
Acko General Insurance mainly focuses on the type of information being delivered to the customer; they
also follow the unique concept of the digital-only model. On social media posts, Acko focuses on different
kinds of insurance provided by them which is an absolutely
Brokerage free, hassle-free claim settlements experience for all its customers keeping the entire process
online.

This ends our elaborative marketing strategy of Acko General Insurance. Let us conclude our learning below
from the marketing strategy of Acko General Insurance.

24
PRODUCTS LIFE INSURANCE CORPORATION OF INDIA

Endowment Plan:

PLAN
SR NO PRODUCT NAME NO. UIN NO.
1 LIC’s Bima Jyoti 860 512N339V02
2 LIC’s Bima Ratna 864 512N345V01
3 LIC’s Dhan Sanchay 865 512N346V01
4 LIC’s Dhan Varsha866 866 512N349V01
5 LIC’s Jeevan Azad 868 512N348V01
6 LIC’s New Endowment Plan 914 512N277V02
7 LIC’s New Jeevan Anand 915 512N279V02
8 LIC’s Single Premium Endowment Plan 917 512N283V02
9 LIC’s Jeevan Lakshya 933 512N297V02
10 LIC’s Jeevan Labh 936 512N304V02
11 LIC’s Aadhaar Stambh 943 512N310V03
12 LIC’s Aadhaar Shila 944 512N309V03

Whole Life Plans:

PLAN
SR NO PRODUCT NAME NO. UIN NO.
1 LICs Jeevan Umang 945 512N312V02

Term Assurance Plans:

PLAN
SR NO PRODUCT NAME NO. UIN NO.
1 LIC’s New TECH TERM 954 512N351V01
2 LIC’s New Jeevan Amar 955 512N350N01
3 LIC’s Saral Jeevan Bima 859 512N341V01

25
Money Back Plans:

PLAN
SR NO PRODUCT NAME NO. UIN NO.
1 LIC’s Dhan Rekha 863 512N343V01
2 LIC’s New Bima Bachat 916 512N284V02
LIC’s NEW MONEY BACK PLAN – 20
3 YEARS 920 512N280V02
LIC’s NEW MONEY BACK PLAN – 25
4 YEARS 921 512N278V02
5 LICs Jeevan Umang 945 512N278V02
LIC’s NEW CHILDREN’S MONEY BACK
6 PLAN 932 512N296V02
7 LIC’s Jeevan Tarun934 934 512N296V02
8 LIC’s Jeevan Shiromani 947 512N315V02
9 LIC’s Bima Shree 948 512N316V02

RIDER

PLAN
SR NO PRODUCT NAME NO. UIN NO.
1 LIC’s Linked Accidental Death Benefit Rider - 512A211V02
LIC’s Accidental Death and Disability
2 Benefit Rider - 512B209V02
3 LIC’s Accident Benefit Rider - 512B203V03
4 LIC’s Premium Waiver Benefit Rider - 512B204V03
5 LIC’s New Critical Illness Benefit Rider - 512A212V02
6 LIC’s NEW TERM ASSURANCE RIDER - 512B210V01
LIC’s Premium Waiver Benefit Rider (With
7 Auto Cover) - 512B210V01

26
PRODUCTS OF ACKO

KEY FEATURES ACKO ADVANTAGE

Premium Car insurance plans starting at ₹ 2,094

Add-ons Multiple add-ons available to enhance your insurance plan
Own Damage policy Available under Comprehensive Insurance
Damages to the third party Covered
Cashless repairs Yes
Available. Cover of Rs. 15 lakhs for permanent disability/death
Personal Accident (PA) cover while driving
Claim Settlement Ratio (CSR) 95.53% for FY21-22 (For Private Car Insurance)
Motor Own Damage Claim Settlement
Ratio 95.50%
Emergency assistance 24*7
Zero Depreciation Cover Available as an add-on/type of cover

Third-party insurance premium price list for fuel cars

THE CAPACITY OF THE

VEHICLE’S ENGINE REVISED PREMIUM RATES FOR FY 22-23 (RS.)
Not exceeding 1000cc Rs. 2,094
Exceeding 1000cc but not exceeding
1500cc Rs. 3,416
Exceeding 1500cc Rs. 7,897

Third-party insurance premium price list for electric cars

VEHICLE BATTERY CAPACITY PREMIUM (1-YEAR POLICY)

Less than 30 kW Rs. 1,780
More than 30 kW and less than 65
kW Rs. 2,904
More than 65 kW Rs. 6,712

KEY FEATURES OUR ADVANTAGE

Bike insurance premium Plans start at Rs. 555*
Third-party liability Covered
Own Damage (OD) Cover Available with the Comprehensive Bike Policy
No Claim Bonus (NCB) Up to 50% discount for 5 claim-free years
Available. Coverage up to Rs. 15 lakhs for permanent
Personal Accident (PA) Cover disability/death.
Cashless repair service Available at network garages.
95.45% for the Financial Year (FY) 2021-22 (Two-wheeler OD
Claim Settlement Ratio (CSR) portfolio)
Buying/renewal within a few minutes without any paperwork.
27
Third-party Two-wheeler Insurance:
All two-wheeler owners must insure their vehicle with 3rd Party Bike Insurance as per The Motor Vehicles
Act, 1988. In case of failure to insure a two-wheeler, the vehicle owner could be liable for a penalty of Rs.
2,000 for the first offence, and Rs. 4,000 and/or imprisonment of up to 3 months for a subsequent offence.

For example, if you damage a third-party vehicle, and the repair cost estimate is Rs. 50,000, the Third-party
Insurance for your two-wheeler shall cover the repair cost, as per the policy’s terms. Without such a cover,
you will have to manage the expenses on your own.

What’s covered in Third-party Two-wheeler Insurance?

Here are the inclusions under the Third-party Two-wheeler Insurance.
Property damage to the third party: If your vehicle damages a third party’s house, vehicle or any property,
the third party is covered for the loss of up to Rs. 7.5 lakhs under the 3rd Party Bike Insurance.
Personal loss to the third party: If a third party suffers injuries due to an accident caused by your vehicle,
their medical cost for the treatment is covered by the 3rd Party Bike Insurance Policy. In case of an
unfortunate loss of life, appropriate compensation is covered by the plan.
Personal Accident Cover for owner-driver: If you have not opted for the Personal Accident Cover (PA)
already, you can include it while purchasing this 3rd Party 2-wheeler Insurance plan. It insures you against
personal injury or death/permanent disabilities with coverage of up to Rs. 15 lakhs.

ACKO health insurance policy

At ACKO, we offer Platinum Health Insurance Plans with different sum insured amounts such as Rs. 10
lakhs, Rs. 25 lakhs, Rs. 50 lakhs, and Rs. 1 crore; we also have a plan with an unlimited amount! With
ACKO Platinum Health Plans by your side, there’s no need to buy multiple policies, as we offer a one-stop
solution for all your medical insurance needs.

Arogya Sanjeevani Policy

Arogya Sanjeevani Health Insurance Policy is a comprehensive health plan with an affordable premium. It
covers medical expenses with a sum insured ranging from Rs. 5,00,000 to Rs. 10,00,000. The coverage
includes costs for in-patient treatment, pre- and post-hospitalisation, room rent, Intensive Care Unit (ICU)
and alternative medicine treatments.
You can buy the Arogya Sanjeevani Policy from ACKO as an Individual Plan or a Family Floater Plan with
the option to pay the premium monthly, quarterly, half-yearly or annually.

28
 CHAPTER 2: RESEARCH AND METHODOLOGY

2.1 OBJECTIVES:

➢ TO ANALYZE COMPERATING STUDY BETWEEN LIC AND ACKO

➢ TO UNDERSTAND THE VARIOUS INSURANCE PRODUCT PROVIDED BY LIC AND ACKO

➢ TO ANALYSE THE CONSUMER PREFERENCE TOWARDS AN INSURANCE COMPANY (LIC

AND ACKO)

➢ TO FIND THE MARKETING STRATEGY OF LIC AND ACKO

2.2 HYPOTHESIS:

H0 = There is no significant difference in competition between LIC and ACKO.

H1 = There is significant difference in competition between LIC and ACKO.

H0 = There is no difference between service quality of LIC and ACKO.

H2 = There is difference between service quality of LIC and ACKO.

H0 = There is no significant difference between the Marketing strategies of LIC And ACKO.
H3 = There is significant difference between the Marketing strategies of LIC And ACKO.

H0 =There is no significant difference in the level of customer satisfaction of LIC and ACKO.
H3 = There is significant difference in the level of customer satisfaction of LIC and ACKO

29
 2.3 RESEARCH PROBLEM

Following are a few potential issues that could arise when doing the study or research:
1. Data collection problem: The limits on the reliability and validity of the data are caused by the fact that a
significant part of the data used in this study is of a secondary type. There may also be subjective biases on
the side of respondents in the case of primary data collecting. the possibility of errors during data collection
or recording as a result.
2. Addressing Difficulties:
This study is only focused on Andheri, Mumbai, because there are "N" numbers of respondents in various
nations around the world, making it impossible to investigate every single area.
3. An imperfect representation of consumer behaviour and preferences During selection of insurance mode
Given the size and scope of the market, many factors, including usage preferences and purchasing patterns
of consumers in this market segment, were taken into account when conducting the study. However, these
factors do not fully account for the accuracy of the findings. It does not, therefore, accurately represent client
preferences and purchasing behaviour.
4. Unable to understand the records during the interview:
The interviewer might not have been able to understand and accurately record the responses because the
information had been collected according to a schedule.

5. Lack of Respondents' Ability to Understand:

Several questions could not or would not receive a complete and correct response from the respondents.

30
 2.4 RESEARCH DESIGN AND METHODOLOGY

INTRODUCTION
The term Methodology is a mixture of two words: ‘Method,’ which means ‘a particular way of doing
something,’ and ‘Logus,’ which means ‘study’ in Latin. So, methodology denotes a methodical approach to
examining anything.
All methods and procedures used to conduct research are included in the research method.
Researcher design and metho
Using a research design, the research strategy was studied in order to produce the desired results.
Explanatory studies are referred to as research that determines whether any link between factors is real.
Quantitative data from such a study may be collected and analysed so that relationships between variables
can be explained. In this study, consumer awareness patterns are examined along with comparisons between
LIC and ACKO. As a result, this study can serve as an explanation.
Qualitative and quantitative analysis are used in two separate ways for doing data study. Non-numerical
data, such as viewpoints, beliefs, stories, video clips, and so forth, are utilized in qualitative data analysis.
Data is typically collected through interviews for qualitative research, which is then further classified and
analysed. Statistics, graphs, and charts are used to analyse quantitative data, which is numerical information.
Usually, a deductive strategy based on positivist philosophy is used in quantitative data analysis.
This study uses a form of quantitative analysis in which a survey is used to gather the data.
Many techniques, including the research method, survey, case study, and others, are commonly used in
quantitative data analysis. For the following reasons, quantitative analysis was considered to be more
suitable for the current research:

1. Using different hypotheses might help explain the consumer awareness trends regarding LIC and ACKO.
2. The massive sample and time limits make qualitative analysis less applicable, which is another factor.

3. In comparison to qualitative analysis, this method made it possible for all respondents to quickly respond to
the same questionnaire.

4. 4. Finally, as the research was conducted in India, an online survey was much more suitable.
The following methodology is more commonly linked to a survey. Surveys that commonly take the form of
questionnaires help collect a lot of data, which makes comparisons easier because the data is highly
standardized. The deductive method is more closely linked to a survey.
Data collection for this study includes the use of an electronically managed, self-administered questionnaire.
This research uses current, reliable, and valid questionnaires as part of the data analysis to analyse the
study’s goals and objectives. The advantage of using a quantitative technique to study customer purchasing
behaviour and decision-making in Andheri, Mumbai, is that more opinions may be studied.

31
 2.4.1 RESEARCH DESIGN
Generally speaking, research design can be thought of as “a blueprint for completing research with full
influence over variables that may interact with the validity of the results,” which is basically a timetable
outlining how, when, and where the data is to be collected and analysed.” Exploratory and simple theories
are used in this research work.

MARKETING RESEARCH:
Marketing study includes the field of challenges, techniques and other aspects of marketing and related
decision-making and the application. It examines an economic unit’s many components, including its
consumers, purchasers, and sellers. It investigates response pattern towards award, promotion, purchasing
power and loyalty towards specific brands and similar other marketing activities. It also makes an effort to
identify how other important elements, such as consumer preferences, habits, and lifestyles, affect decision-
making.

DESCRIPTIVE RESEARCH:
Descriptive research Relationship refers to the process of turning raw data into something that can be easily
clarified and understood. The steps involved in descriptive analysis are those that relate to quantitative
outcomes.
A fact-finding study with accurate descriptions is a descriptive study. That is the simplest kind of
investigation. Compared to explanatory research, it is more focused on a specific component of the topic at
hand. It is created with both descriptive data and information that can be used to create more complex
investigations. A suitable approach, such as observation, a questionnaire, or research, has been used to
gather the data.
Given that a descriptive research design was adopted, it is obvious that the study’s focus is on specific
customer attitudes towards insurance companies.

2.5 DATA COLLECTION:

Secondary and Primary Data are the main pillar of the research. Secondary data for this duty was collected
through books, magazines and the interest. The primary data for the research work was gained through a
structured, multiple-choice questionnaire with the majority of the questions being close-ended.
PRIMARY DATA
We collected sample populations for primary data. All of the information used in our research was gathered
by people directly. Questionnaires were utilised as the method of data collection.
SECONDARY DATA
The secondary data collected from various sources like internet, magazines, academic books etc.
SAMPLING TECHNIQUE
According to the researcher’s preference, the sample strategy used for the study is random sampling. A
questionnaire was distributed to a variety of students and working professionals in order to collect data for
analysis.
32
 SAMPLE SIZE
Data is collected using a sample of 50 Respondent.

SAMPLE DESCRIPTION
The primary sources that are used for this study’s objective make up the majority of the sample. This is
achieved by distributing questionnaires to different individuals. For collecting more information, secondary
data sources such as business journals, records, research reports, etc. were also used.
The accuracy of the study is dependent on the validity of the data given by respondents.

2.5.1 IMPORTANCE OF THE RESEARCH

Its analytical scope includes both the testing of the hypothesis and the realization of the study’s objectives.
To identify the preference of the consumers for insurance services.
The practical scope is limited to offering a variety of smart suggestions for enhancing way insurance
companies worldwide operate.

2.5.2 LIMITATIONS OF THE STUDY

In order to make the research as realistic as possible, every effort has been made to collect information. It
does, however, receive some data. They are listed as follows:

1. The findings and suggestions given here are all only applicable for the present moment.
2. The accuracy of the study is dependent on the validity of the data given by respondents.

33
 CHAPTER 3: REVIEW OF LITERATURE

1.Desai (1973):

The history of the life insurance industry in our country and its expansion after nationalization are explained
and illustrated in his book “Life Insurance in India, its development and its aspect of growth. The industry of
life insurance was

Nationalized in 1956 and on the 1st September 1956 “LIFE INSURANCE CORPORATION OF INDIA”
was created. Each year from 1st to 7th September, this historic incident insurance week is held every year
thereafter. The objectives of nationalization were defined as conducting the business with utmost economy
in true sense trusteeship, to charge premium no higher than narrated by strict actuarial consideration, and to
invest the fund for obtaining maximum yield consistent with safely of capital and render prompt and
efficient services to the policy holders, etc. The mission given to LIC. At that time can be summarized as
providing protection of insurance to people in every nook and corner of the country Mobilizing savings for
the development of country. Responding to customer sensitivity Consequent to that, tracing the development
of life insurance industry is nothing but wading through the progress of LIC itself. Rabindra Ghimire (2013)
in his article titled “Performance Evaluation of Nepal Life and LIC: A Comparative Analysis of Earnings
and Profitability Indicators” compares the financial performance between the two largest private sector
domestic and joint venture life insurance in Nepal. The study concludes that both Nepal Life and LIC‟s has
significantly grown their revenue, assets, net profit, life fund and their contribution in life insurance industry
is remarkable. The analysis is based on secondary data. Data were analysed on CARAMELS parameter
confine on earnings and profitability ratios.

2. Dr. Anshuja Tiwari & Babita Tiwari (2012):

In their article titled “Analytical study on Indian Life Insurance Industry in Post Liberalisation” has clearly
explained the status and growth of Indian Insurance Industry. They also clear the impact of liberation on life
insurance industry. With the help of secondary data related to Total Premium Income, Number of Policies:
New Business, Total Income and Market Share in terms of Total Premium, they give an idea about the
change in market of LIC and Private Insurance Companies.

Prof.Sanjay Kumar Jagannath Patil (2012): In his research paper title “A Study on Consumer Satisfaction
Towards Life Insurance Corporation of India” has clearly find the observation through questionnaire that
95% of customers of the LIC were satisfied with the products and services of LIC. He also mentioned that
20% are highly satisfied. The study was based on primary data.

34
3. Dr. Sonika Chaudhary and Priti Kiran (2011):

in the research paper article “Life Insurance Industry in India – Current Scenario” highlights the current
scenario of Life Insurance companies of India. They analyse the growth in number of offices of Indian Life
insurers, growth in number of individual agents working in Life Insurance Industry, number of products and
riders, growth of life insurance new business in India, growth of premium income and settlement of claims
with the help of secondary data.

Tripathi. S (2009): in his dissertation report on “A Comparative Analysis of LIC and Private Insurance
Companies”. The main objective of the study is to compare the performance of LIC and private life
insurance companies. The study was analytical and based on secondary data sources. Comparison between
LIC and private insurers has been done on the basis of size, growth, productivity and grievances handling
mechanism. Private companies are giving direct competition to LIC, LIC is a dominating player even after
privatization and abundance scope of insurance expansion in the Indian market, LIC is having huge
customer base being an old giant are some of the main findings of this study. He concluded that LIC is a
most popular and leading brand but with aggressive marketing approach; private companies are giving direct
competition to LIC.

4. Murthy, R. Babu and Ansari (2009):

in the paper examined the “Performance of Life Insurance Corporation”. Due to globalization of financial
services and liberalization of economy, the Life Insurance Corporation of India (LIC) has been facing
intense competition from the new entrants and is also playing a lead role in the life insurance industry. The
purpose of the study is to analyse the growth and development of LIC business before and after
liberalization, ways to improve customer services and to make appropriate suggestions for the improvement
in LIC business. There is no doubt that, life Insurance Industry has grown significantly with the entry of
private players but the market share of LIC has declined gradually over a period of years. The direct
competition from the private players has forced LIC to look for effective marketing strategy with innovative
products and better customer services in order to satisfy existing policyholders and policy seekers Creating a
win-win situation for both the parties are the main aim of this study to achieve this healthier competition has
to be intensified by both the sectors, to increase insurance-density and penetration levels in order to fulfil
customer needs and reach their expectations of the Indian Insurance market.
5. Paramita Chatterjee (2009):

in her article titled “Private Insurers Command Majority Share of Life Insurance Market”. She evidently
said private insurers recorded 62% growth rate in April-December 2008 against 45% in the same period of
last fiscal. ICICI Prudential, HDFC Standard, SBI Life and Bajaj Allianz are the dominant players of the life
Insurance sector. LIC a market leader recorded a decline of 28% and experts said the industry has witnessed
a reasonable growth despite the tight financial conditions.

35
6. Rao and Parkash (2006):
In their study titled, “Investment Portfolio Performance of the LIC” observed that the LIC while investing
its funds, has to consider various factors and forces such as safety, liquidity and productivity of funds plus
various other regulatory bindings in terms of investment norms, asset liability management etc. In the year
2004-05, LIC had total funds to the tune of Rs. 416910.36crore and a total investment of Rs. 413800.95
crore. In India 86.14per cent of the investment is made in stock exchange securities. The study concluded
that LIC should constantly monitor the business environment and accordingly change its investment
portfolio, so as to enhance its investment performance.

7.Krishnamurthy. S, Mony S.V, Jhaveri. N, Bakhshi.S, Bhatt’s and Dixit M.R (2005):
In the paper titled “Insurance Industry in India: Structure Performance and Future Challenges”, has clearly
explained the status and growth of Indian Insurance Industry after liberalization and also presents future
challenges and opportunities linked with the Insurance. Insurance is the backbone of country’s risk
management system and influence growth of an economy in several ways. Penetration of Insurance largely
depends on availability of Insurance products, insurance awareness and quality of services. The future
growth of this sector will depend on how effectively the insurers are meeting the expectations of their
customers and able to change the perceptions of the Indian consumers and make them aware of the insurable
risks. On the demand side, the rises in income will trigger the growth of Insurance. The process of reforms
has enhanced competition, provided a choice to the customers, improved the efficiency level of the industry
and obligated the insurers to provide social and rural sectors. LIC continues to remain strong in rural areas
while in major urban and metros the private insurers have made their presence felt.

8.Kundu (2003):
In an article titled, what’s next in India’s Insurance Market‟ discussed the changes in various issues of
Insurance Industry after the entry of new players. Despite of having huge population, India still has a low
insurance penetration. Today, people are increasingly looking not just at products but at integrated financial
solutions that can offer stability of returns along with total protection. Technology will play an important
role in aiding design and administrating of products as well in efforts to build long customer relationships.

36
 CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

The process of giving meaning to the information collected and establishing the conclusions, importance,
and applications of the findings is called data analysis and interpretation.

• GENDER

Figure 4.1

GENDER

FEMALE
52% 48%
MALE

Table I

SR.NO GENDER PERCENTAGE

1 FEMALE 48.10%

2 MALE 51.90%

TOTAL 100.00%

37
 INTERPRETATION

The gender of the responders is shown in the pie chart above. From It is clear from the above table that
males make up 52% of the population, with 48% of the population being female.
Because it seems to represent the attitudes, choices, and financial intentions of the financiers, gender is a
helpful variable when applying for or investing in insurance.

A key indicator of social behaviour is gender. It appears that men make up the majority of those who apply
for insurance.

The respondents are more likely to have been aware of the terms and conditions at the time of purchase.

38
• AGE GROUP

Figure 4.2

AGE GROUP

0%
7% 4%
18-25
26-40
41-60
MORE THAN 60
89%

Table II

SR.NO AGE FROUP PERCENTAGE

1 18-25 89%

2 26-40 7%

3 41-60 4%

4 MORE THAN 60 0%

TOTAL 100.00%

39
 INTERPRETATION

Age group plays an important role while applying for insurance

Above table shows that 89% are aged between 18-25 years, 7% are aged from 26 – 40 whereas 4% are
between 40 – 60 years.

From this we come to know that persons who are ranging between 18-25 years are more interested to apply
for an insurance. The persons who aged above 40 years are less interested for that matter.

In this study we can further see that young generation are more motivated and aware about insurance

40
• OCCUPATION

Figure 4.3

OCCUPATION
90.00%
80.00%
70.00%
60.00%
50.00%
40.00% 85.20%

30.00%
20.00%
10.00%
7.20% 1.90% 1.90% 1.90% 0% 1.90%
0.00%

PERCENTAGE

Table III

SR.NO OCCUPATION PERCENTAGE

1 STUDENTS 85.20%

2 SERVICE 7.20%

3 BUSINESS 1.90%

4 PROFESSION 1.90%

5 HOUSEHOLDS 1.90%

6 RETIRED 0%

7 HOUSEWIFE 1.90%

TOTAL 100.00%

41
 INTERPRETATION

Occupation plays a vital role then whether it is in case of investment in insurance.

In the above presented data it is shown that 85.20% people are students, 7.20% works in service sector,
1.90% of people has own business and 1.90% people are professional. Only 1.90% are households and
housewife.

Most of people are students.

People from different occupation are indulge in investment activity not only from the commerce or accounts
and finance background but from other background too.

42
Q1. DO YOU HAVE AN INSURANCE POLICY?

Figure 4.4

19%

YES
NO

81%

Table IV

SR.NO PARITICULARS PERCENTAGE

1 YES 81%

2 NO 19%

TOTAL 100.00%

INTERPRETATION

The majority of people have health insurance. It is no longer a luxury, but rather a need for day-to-day
existence and to ensure your safety.
According to the above figures, 81% of persons have insurance and 19% do not.
Just 81% of those polled had insurance. We also have those who do not have insurance.

43
Q2. HOW MANY INSURANCES POLICY DO YOU CURRENTLY HAVE?

Figure 4.6

100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
90.40%
40.00%
30.00%
20.00%
10.00%
5.80% 3.80% 0% 0%
0.00%
1 2 3 4 MORE THAN 5

Series1

Table VI

SR.NO PARITICULARS PERCENTAGE

1 1 90.40%

2 2 5.80%

3 3 3.80%

4 4 0%

5 MORE THAN 5 0%

TOTAL 100.00%

INTERPRETATION
As a result, 90.40 percent of consumers have only one insurance policy. In comparison, 5.80% of people
have two insurance policies.
And sometimes people take out multiple policies to mitigate risk. Here, 3.80% of people have multiple
insurance policies.
44
Q3. WHAT TYPE OF INSURANCE DO YOU HAVE?

Figure 4.7

39%
ONLINE INSURANCE
OFFLINE INSURANCE
61%

Table VII

SR.NO PARITICULARS PERCENTAGE

1 ONLINE INSURANCE 61%

2 OFFLINE INSURANCE 39%

TOTAL 100.00%

45
 INTERPRETATION

In the above information, the data has been interpreted to mean that most of the people have taken whichever
type of insurance policy from the insurance companies is most suitable for them.
The data represents that 61% of the people have taken insurance from the offline platform and 39% of the
people have taken insurance from the online platform, so the majority of people have an offline policy and
they prefer to visit the office and directly communicate with staff.

46
Q4. WHO INFLUENCED YOU TO GET AN INSURANCE POLICY?

Figure 4.8

2%
19%
THE MEDIA
INSURANCE AGENTS
39%
BANK/THIRD PARTY
FRIENDS, FAMILY AND COLLEGUES
DIRECT INSURANCE COMPANY
36%
4%

Table VIII

SR.NO PARITICULARS PERCENTAGE

1 THE MEDIA 19%

2 INSURANCE AGENTS 36%

3 BANK/THIRD PARTY 4%

4 FRIENDS, FAMILY AND COLLEGUES 39%

5 DIRECT INSURANCE COMPANY 2%

TOTAL 100.00%

47
 INTERPRETATION

People who are living in our society play an important role at the time of purchasing any product. They give
reviews, influence, and suggest buying particular things. According to the survey, 39% of people get
influenced by friends, family, and co-workers when purchasing an insurance policy. Insurance agents
influenced 36% of people to take out an insurance policy.
The media successfully influenced people to buy insurance policies. Sometimes banks suggest buying
insurance to reduce risk. Here, the 4% of the bank and their party play a role in buying.
And only 2% of people liked to visit directly office to get policy.

Q5. WHAT KIND OF INSURANCE POLICY DO HAVE? CHECK AS YOU HAVE.

Figure 4.9

LIC 1.90%

PROPERTY INSURANCE 5.70%

PENSION PLAN POLICY 5.70%

AUTOMOBILE INSURANCE 9.40%

Series1
MONEY BACK POLICY 18.90%

ENDOWMENT POLICY 11.30%

WHOLE LIFE POLICY 26.40%

SAVINGS POLICY 54.70%

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

48
 Table IX

SR.NO PARITICULARS PERCENTAGE

1 SAVINGS POLICY 54.70%
2 WHOLE LIFE POLICY 26.40%
3 ENDOWMENT POLICY 11.30%
4 MONEY BACK POLICY 18.90%
5 AUTOMOBILE INSURANCE 9.40%
6 PENSION PLAN POLICY 5.70%
7 PROPERTY INSURANCE 5.70%
8 LIC 1.90%
TOTAL 100.00%

INTERPRETATION

It is critical to select the appropriate policy for the parameters that are suited for your needs.
According to the data presented above, 54.70% of the population follows a savings policy.
People in India believe in preserving money in case of future financial challenges.

Then 26.40% of consumers chose complete life insurance.

The remaining 11.30% choose an endowment policy, while 18.90% prefer a money-back policy.
Automobile insurance is purchased by 9.40% of people who own a vehicle.

They put 5.70% of their money into pension plans, policies, and property insurance.
As we can see, an increasing number of people are adopting a savings policy.

49
Q6. WHERE DO YOU INVEST YOUR SAVINGS?

Figure 4.10

1 TRADITIONAL INSURANCE
COMPANY (LIC)
2 DIGITAL INSURANCE
2% 15% COMPANY (ACKO)
3 POST OFFICE DEPOSIT
5%
37%
13% 4 GOLD/SHARE/MUTUAL
FUND
5 BANK DEPOSIT
28%
6 REAL ESTATE

Table X

SR.NO PARITICULARS PERCENTAGE

1 TRADITIONAL INSURANCE COMPANY (LIC) 15%

2 DIGITAL INSURANCE COMPANY (ACKO) 5%

3 POST OFFICE DEPOSIT 13%

4 GOLD/SHARE/MUTUAL FUND 28%

5 BANK DEPOSIT 37%

6 REAL ESTATE 2%

TOTAL 100.00%

50
 INTERPRETATION

In the above information, the data has been interpreted to mean that most people invest money in bank
deposits to get some percentage of interest.

The data shows that 37% of people like to invest money in banks.
The 28 percent of people who invest money in post office deposits.
15% of respondents prefer LIC to invest their money.

Therefore, according to the survey, 13% of people will refer ACKO.

The remaining 5% of people like to invest in gold, shares, or mutual funds, and 2% in real estate.

51
Q7. PURPOSE OF INVESTMENT IN INSURANCE BY RESPONDENTS?

Figure 4.11

20%
INSURANCE SECURITY
41% TAX BENEFITS
SAVINGS
20%
MULTIPLE BENEFITS

19%

Table XI

SR.NO PARITICULARS PERCENTAGE

1 INSURANCE SECURITY 41%

2 TAX BENEFITS 19%

3 SAVINGS 20%

4 MULTIPLE BENEFITS 20%

TOTAL 100.00%

52
 INTERPRETATION

Above the data are reasons why people are investing their money in insurance policies.
In the above data, the majority of the people refer to a security, which is 41%.

Then the other half of people go with the savings and multiple benefits, which is 20%.
And 19% of people choose tax benefits.

53
Q8. WHICH INSURANCE PROVIDERS PREMIUMS DO YOU BELIEVE TO BE SECURE?

Figure 4.12

4%

LIC
ACKO

96%

Table XII

SR.NO PARITICULARS PERCENTAGE

1 LIC 96.00%

2 ACKO 4.00%

TOTAL 100.00%

54
 INTERPRETATION

Given the above scenario, statistics shows that 96% of people prefer to invest in LIC since it has earned the
trust and hearts of Indians.

Another reason is the organization’s reputation.

The remaining 4% of people trust ACKO

Q9. RESPONSES ABOUT RESPONDETS PREFERENCE FOR BUYING NEW INSURANCE

POLICIES?

Figure 4.13

13%

KEEP GING WITH "LIC"

15%
VISIT " ACKO"
NONE
72%

Table XIII

SR.NO PARITICULARS PERCENTAGE

1 KEEP GING WITH "LIC" 72%

2 VISIT " ACKO" 15%

3 NONE 13%

TOTAL 100%

55
 INTERPRETATION

In the above information the data has been interpret that most of

The people were referring to keep going with LIC.

The data represents that 72%% of the people choose the LIC.

And 15% of people would like to visit ACKO once.

Other hand 13% of people recommended to choose other insurance company.

Majority of people have like LIC service.

56
Q10. ARE YOU MORE WILLING TO BUY AN INSURANCE POLICY ONLINE OR AT AN
OFFLINE OFFICE?
Figure 4.14

44% ONLINE
56% OFFLINE

Table XIV

SR.NO PARITICULARS PERCENTAGE

1 ONLINE 56%

2 OFFLINE 44%

TOTAL 100.00%

57
 INTERPRETATION

According to the data presented above, 56% of consumers prefer to purchase insurance online. They should
try to save their precious time.

In comparison, 44% of users use offline mode.

These people wish to make a real visit and contact the insurance company.

Q11. IS THERE ANY IMPACT OF ADVERTISEMENTS AND CELEBRITIES ON

THE PURCHASE BEHAVIOUR OF INSURANCE PRODUCTS?

Figure 4.15

37% YES
44%
NO
MAY BE

19%

58
 Table XV

SR.NO PARITICULARS PERCENTAGE

1 YES 44%

2 NO 19%

3 MAY BE 37%

TOTAL 100.00%

INTERPRETATION

Is there a correlation between celebrity endorsements and insurance product purchases, according to the data
presented above?

According to the abovementioned research, 44% of respondents agreed that it affects the consumer.

However, 19% of respondents disagreed. They have trust in first-hand knowledge.

The remaining 37% of public commentary was incorrect. So, they decide to May be.

59
Q12. YOU ARE SATISFIED WITH WHICH POLICY?

Figure 4.16

7%
4%

LIC
ACKO
NONE

89%

Table XVI

SR.NO PARITICULARS PERCENTAGE

1 LIC 89%

2 ACKO 4%

3 NONE 7%

TOTAL 100.00%

60
 INTERPRETATION

The respondents’ level of satisfaction is seen in the pie chart above. From
It is clear from the table above that the majority of people (89%) are content with their lives.

LIC fulfilled client needs, provided excellent services, and received positive feedback from 4% of
respondents about ACKO.

7% of people, on the other hand, are not happy with any company.
As a result, the majority of people are happy with LIC.

Q13. WHICH INSURANCE DO YOU RECOMMEND TO OTHERS?

Figure 4.17

7%
4%

LIC

NONE

89%

61
 Table XVII

SR.NO PARITICULARS PERCENTAGE

1 LIC 89%

2 ACKO 4%

3 NONE 7%

TOTAL 100.00%

INTERPRETATION

The information is the same as it was before.

The aforementioned table makes it evident that the majority of people (89%) suggest LIC items to others.

4% of respondents said they would suggest ACKO to others, while LIC met the demands of clients and
offered superior service.

Conversely, 7% of people are not suggested to others.

Thus, the vast majority of respondents suggested LIC.

62
 CHAPTER 5: CONCLUSION AND SUGGESTIONS

5.1 FINDINGS:

It has been found that most of the customers prefer LIFE INSURANCE CORPORATION OF INDIA to
other competitive like ACKO according to the survey conducted.
Most of the people prefer LIFE INSURANCE CORPORATION OF INDIA because it provides good quality
service and a wide variety of insurance policies that satisfy the customer’s wants.

It is observed that LIFE INSURANCE CORPORATION OF INDIA offers a very vast and huge range of
diversified products catering to the needs of various sections of people in India and outside of India.
For example: endowment plans, whole-life plans, term assurance plans, money-back plans, etc.

LIFE INSURANCE CORPORATION OF INDIA is mostly known for reputation of firm and quality service
it provides to their customers. According to the survey, most of the respondents prefer LIC for taking
insurance because Canon also provides good quality service and a wide range of products.

5.2 SUGGESTIONS:

Consumers should to pick LIC due to the quality of service and reputation of the company.

It offers individual solutions considering them

Specific financial requirement and risk profile and helps to solve it. The main objective of LIC is to offer
enough financial cover at a reasonable price that is also affordable and offers value for money.
Cost to all insurable persons. LIC’s product range is as vast as its price range.
LIC provides good sales service and creates a great bond between firm and customer.

To positively influence consumer attitudes and ideas about online insurance, ACKO should make use of
friends and family as reference groups.
ACKO should create awareness in elders and try to show them nowadays how online platforms are safe and
convenient.

63
 5.3 CONCLUSION:

According to study majority of peoples choosing LIC over the ACKO. Because LIC gained Indian
customers’ trust and won their hearts, another reason is brand value and brand loyalty. In India, people put
more trust in government companies than private ones. And LIC is a government organization, while ACKO
is a private organization.
ACKO is a fully digital insurance platform. ACKO insurance is a little bit cheaper than LIC and requires less
paperwork, which is also time-saving.
ACKO is popular within youngster but the elder people refer LIC.
We know today’s world is adopting digitalization, but sometimes some people want a psychical touch on
finance-related things.
People want to actually visit the office, communicate with their employees, clarify their doubts, etc.
In the future, ACKO will definitely capture more of the insurance market in India, but it will take time.
In current scenario most of people the people refer LIC.
According to the poll, LIC is preferred by 70.2% of respondents, who also expressed 88.9% satisfaction with
the product and 88.9% recommendations to others.

As a result, many choose LIC for their insurance.

According to a study, the LIC marketing strategy “Zindagi ke saath bhi, zindagi ke baad bhi” is more
effective in the Indian market.

64
 REFERENCE

• Kavitha, Lakshmi and Lakshmi Chandrasekaran (2017) ‘An Overview of Insurance Sector’, Vipul
Prakashan, Mumbai, pages 266. (SYBBI- IV)

• Mrs. Amisha Hemant Desai (2015). “A comparative study of performance of selected private life insurance
with lic”, Pacific university.

• Mr. Bajpai Saurab. (2020)” Comparative Study of Marketing Strategies Adopted by LIC and ICICI in
Lucknow”, Integral University, Lucknow, pp. 316

• The economic times

65
 BIBLIOGRAPHY

Websites:
1.News of ACKO-
https://m.economictimes.com/company/acko-general-insurance-limited/U66000MH2016PLC287385
2. ACKO basic overview - https://yourstory.com/companies/acko-insurance
3.What are the Functions of LIC? - https://www.wealthpedia.in/functions-of-lic/?amp=1

4.Marketing Strategy of ACKO General Insurance - https://iide.co/case-studies/marketing-strategy-of-

acko-general-insurance/
5.Complete Marketing Strategy of LIC - https://iide.co/case-studies/marketing-strategy-of-lic/
6.benefits of insurance - https://www.probusinsurance.com/life-insurance/
7. Objectives of Insurance - https://commercemates.com/objectives-of-insurance/
8. Research paper’s –
https://shodhganga.inflibnet.ac.in/handle/10603/339443
https://shodhganga.inflibnet.ac.in:8443/jspui/handle/10603/329306
9. types of insurance -
https://paytm.com/blog/insurance/what-is-insurance-definition-benefits-and-types/
10. ACKO insurance plan - https://www.acko.com/digital-insurance-trends-and-benefits/
11. LIC history and plan - https://licindia.in/Top-Links/about-us/History
12. images – https://www.istockphoto.com/photo/selective-focus-of-magnifying-glass-glasses-and-
insurance-policy-letter-on-a-white-gm1295819436-389428028?phrase=insurance
13. An Overview of Insurance Sector – IV (LAKSHMI KAVITHA, LAKSHMI
CHANDRASEKARAN) Vipul Prakashan (SYBBI).

66
 ANNEXURE

NAME OF THE PARTICIPANTS?

o -----------------------------------------

GENDER OF PARTICIPANTS?
o FEMALE
o MALE
o TRANSGENDER

AGE- OF PARTICIPANTS?

o 18-25
o 26-40
o 41-60
o MORE THAN 60

OCCUPATION OF PARTICIPANTS?

o STUDENTS
o SERVICE
o BUSINESS
o PROFESSION
o HOUSEHOLD
o RETIRED
o OTHER

Q1. DO YOU HAVE AN INSURANCE POLICY?

o YES
o NO

Q2. HOW MANY INSURANCE POLICY DO YOU CURRENTLY HAVE?

o 1
o 2
o 3
o 4
o MORE THAN 5

Q3. WHAT TYPE OF INSURANCE DO YOU HAVE?

o ONLINE INSURANCE/ DIGITAL INSURANCE

o OFFLINE INSURANCE / PHYSICAL INSURANCE

67
 Q4. WHO INFLUENCED YOU TO GET AN INSURANCE POLICY?

o THE MEDIA/ ADVERTISEMENT

o INSURANCE AGENTS
o BANK/ THIRD PARTY
o FRIENDS, FAMILY AND COLLEAGUES
o DIRECT INSURANCE COMPANY
o OTHER

Q5. WHAT KIND OF INSURANCE POLICY DO HAVE? CHECK AS YOU HAVE.

o SAVING POLICY
o WHOLE LIFE INSURANCE
o ENDOWMENT POLICY
o MONEY BACK POLICY
o AUTOMOBILE INSURANCE
o PENSION PLAN POLICY
o PROPERTY INSURANCE
o OTHER

Q6. WHERE DO YOU INVEST YOUR SAVINGS?

o TRADITIONAL INSURANCE COMPANY

o DIGITAL INSURANCE POLICY
o POST OFFICE DEPOSIT
o GOLD/SHARE/MUTUAL FUND
o BANK DEPOSIT
o REAL ESTATE

Q7. PURPOSE OF INVESTMENT IN INSURANCE BY RESPONDENTS?

o INSURANCE SECURITY
o TAX BENEFITS
o SAVINGS
o MULTIPLE BENEFITS

Q8. WHICH INSURANCE PROVIDERS PREMIUMS DO YOU BELIEVE TO BE SECURE?

o LIC
o ACKO
o OTHER

68
Q9. RESPONSES ABOUT RESPONDETS PREFERENCE FOR BUYING NEW INSURANCE
POLICIES?

o KEEP GOING WITH “LIC”

o VISIT “ACKO”
o NONE

Q10. ARE YOU MORE WILLING TO BUY AN INSURANCE POLICY ONLINE OR AT AN

OFFLINE OFFICE?

o ONLINE
o OFFLINE

Q11. IS THERE ANY IMPACT OF ADVERTISEMENTS AND CELEBRITIES ON THE

PURCHASE BEHAVIOUR OF INSURANCE PRODUCTS?

o YES
o NO
o MAY BE

Q12. YOU ARE SATISFIED WITH WHICH POLICY?

o LIFE INSURANCE CORPORATION(LIC)

o ACKO
o OTHER

Q13. WHICH INSURANCE DO YOU RECOMMEND TO OTHERS?

o LIC
o ACKO
o NONE

69
70