Vishweshwar Education Society’s

Indira Institute of Business Management

GENERAL MANAGEMENT

PROJECT REPORT ON

“A STUDY ON CUSTOMER AWARENESS REGARDING VARIOUS PRODUCTS

AND SERVICES OFFERED BY LIC”

Submitted in partial fulfilment for the award of the degree of

MASTER OF MANAGEMENT STUDIES

UNIVERSITY OF MUMBAI

Submitted by
Ms. Rutuja Praful Amberkar

ROLL NO- 2022004

2022-2024

Under The Guidance of

Prof. Nikhil Shirsat
 DECLARATION

I hereby declare that this project report submitted by me in partial fulfilment of the requirement for the
award of MASTER OF MANAGEMENT STUDIES (MMS) of the University of Mumbai is a bonafide
work undertaken by me and it has not been submitted to any other University or institution for the award of
any other degree or diploma certificate or published any time before.

Name: Rutuja Praful Amberkar

Roll No: 2022004

Signature of the student

 Vishweshwar Education Society’s
Indira Institute of Business
Management

CERTIFICATE

This is to certify that the project entitled “A study on customer awareness regarding various products
and services offered by LIC” submitted by Miss. Rutuja Praful Amberkar in partial fulfilment for the
award of Master of Management Studies of Mumbai University is his/ her original work and does not form
any part of the projects undertaken previously.

Date:

------------------------------ ---------------------------
PROF. NIKHIL SHIRSAT DR. ASHOK LUHAR
(PROJECT GUIDE) (DIRECTOR)
 ACKNOWLEDGEMENT

This project has been a great learning experience for me. I take this opportunity to thank Prof. NIKHIL
SHIRSAT, my internal project guide whose valuable guidance & suggestions made this project possible. I
am extremely thankful to him for his support. He has encouraged me and channelized my enthusiasm
effectively.
I express my heart-felt gratitude towards my parents, siblings and all those friends who have willingly and
with utmost commitment helped me during the course of my project work.
I also express my profound gratitude to DR. ASHOK LUHAR, Director of Indira Institute of Business
Management for giving me the opportunity to work on the projects and broaden my knowledge and
experience.
I would like to thank all the professors and the staff of Indira Institute of Business Management especially
the library staff who were very helpful in providing books and articles I needed for my project.
Last but not the least, I am thankful to all those who indirectly extended their co-operation and invaluable
support to me.
 EXECUTIVE SUMMARY

The study on consumer preferences regarding products and services offered by the Life Insurance
Corporation of India (LIC) provides a comprehensive examination of the evolving landscape within the
Indian insurance market. Through meticulous research methodologies, including primary data collection
through surveys and interviews, supplemented by secondary data analysis from various sources, the research
endeavors to unravel the intricate nuances of policyholders' perceptions, expectations, and desires within the
LIC ecosystem. At the heart of the investigation lies the palpable sense of trust and reliability that
policyholders associate with LIC. A substantial proportion of the population gravitates towards LIC policies,
drawn by the institution's longstanding reputation for stability and its ability to offer competitive interest
rates. This enduring trust underscores LIC's pivotal role as a stalwart in the Indian insurance landscape,
shaping consumer decisions and preferences. Moreover, the study sheds light on the evolving expectations
for innovation and adaptation within the insurance sector. Policyholders exhibit a discernible appetite for
novel schemes and policies that not only promise attractive returns but also resonate with their evolving
financial needs and lifestyle dynamics. This burgeoning demand underscores the imperative for LIC to
embrace a culture of innovation, continually refreshing its product portfolio to remain relevant and
responsive to changing consumer preferences.

In tandem with the quest for innovation, policyholders express a fervent desire for an enhanced service
experience. Streamlined processes, responsive communication channels, and personalized assistance emerge
as focal points in policyholders' aspirations, signaling a paradigm shift towards a more customer-centric
approach in service delivery. Recognizing the pivotal role of service excellence in fostering customer loyalty
and satisfaction, LIC is prompted to prioritize investments in technology-driven solutions and customer
engagement initiatives. In conclusion, the study underscores the imperative for LIC to remain attuned to the
evolving needs and preferences of policyholders in the dynamic Indian insurance market. By fostering a
culture of innovation, prioritizing service excellence, and embracing strategic adaptability, LIC can fortify
its position as a trusted guardian of financial security for millions of policyholders across India.
 CONTENTS

SR. NO TITLE PAGE NO

1 INTRODUCTION
1.1 Introduction of the study
1.2 Objectives of the study
1.3 Scope of the study
1.4 Limitation of the study

2 COMPANY PROFILE

3 RESEARCH METHODOLOGY

4 METHODOLOGY
4.1 Research Design
4.2 Sample design
4.3 Data Collection methods

5 DATA ANALYSIS & INTERPRETATION

6 FINDINGS

7 CONCLUSION

BIBLIOGRAPHY AND REFERENCES

ANNEXURE

CHAPTER I

INTRODUCTION
INTRODUCTION TO INSURANCE
Insurance is a multifaceted financial mechanism that serves as a shield against various risks and
uncertainties that individuals, businesses, and organizations face in their daily lives and operations. At its
core, insurance operates on the fundamental principle of risk management, spreading the financial impact of
potential losses across a large pool of policyholders in exchange for the payment of premiums.

The concept of risk lies at the heart of insurance. Risk refers to the possibility of an adverse event occurring
that could lead to financial loss or damage. These risks can manifest in numerous forms, including natural
disasters, accidents, illnesses, property damage, liability claims, and more. By transferring these risks to
insurance companies, individuals and entities can gain peace of mind and financial protection against the
uncertainties of life and business.

An insurance policy serves as the contractual agreement between the insurer and the insured, outlining the
terms and conditions of coverage. Within the policy, key details such as the scope of coverage, coverage
limits, exclusions, premiums, deductibles, and policy duration are specified. This document provides clarity
on the rights and obligations of both parties and forms the basis for the insurance relationship.

Premiums represent the financial consideration paid by the insured to the insurance company in exchange
for coverage. The amount of the premium is determined by various factors, including the level of risk
associated with the insured, the type and extent of coverage, and the insurer's operating costs and profit
margins. Premiums can be paid periodically, such as monthly or annually, and failure to pay may result in
the termination of coverage.

Deductibles are another essential aspect of insurance policies. A deductible is the amount of money that the
insured must pay out of pocket before the insurance coverage takes effect. By requiring policyholders to
share in the initial costs of a claim, deductibles help to align incentives and discourage frivolous or
unnecessary claims.

The concept of coverage refers to the specific risks or perils that are protected by an insurance policy.
Different types of insurance policies offer coverage for distinct sets of risks. For example, auto insurance
typically covers damage to vehicles and liability for injuries or property damage, while health insurance
provides coverage for medical expenses and treatments.

Underwriting is the process by which insurance companies assess and evaluate the risks associated with
insuring a particular individual, business, or asset. Insurers analyze various factors, such as age, health
status, occupation, location, and past claims history, to determine the appropriate level of risk and pricing for
coverage. Through underwriting, insurers seek to maintain a balanced and sustainable risk portfolio while
providing fair and competitive pricing to policyholders.

When a covered loss occurs, the insured can file a claim with the insurance company to receive
compensation according to the terms of the policy. Claims are subject to review and verification by the
insurer to ensure that they meet the criteria for coverage. Once approved, the insurer will provide financial
assistance or services to help mitigate the impact of the loss, thereby fulfilling its obligation under the
policy.

Insurance plays a vital role in modern societies by providing financial protection and stability to individuals,
businesses, and communities. By pooling risks and resources, insurance enables individuals and entities to
manage uncertainties effectively, safeguard their assets and livelihoods, and pursue their goals with
confidence.

DEFINITION OF INSURANCE

Insurance is a contractual agreement between an individual, entity, or organization (the insured) and an
insurance company (the insurer), wherein the insurer agrees to provide financial protection or
reimbursement against specified risks or losses in exchange for the payment of premiums. In essence,
insurance serves as a mechanism for managing and transferring the financial impact of potential risks from
the insured to the insurer, thereby mitigating the adverse consequences of unforeseen events.

HISTORY OF INSURANCE

The history of insurance can be traced back thousands of years, with early forms of risk-sharing and
compensation emerging in ancient civilizations. Here's a brief overview of the evolution of insurance:

Ancient Origins: The concept of insurance has roots in ancient civilizations such as Babylon, China, and
Rome. In these societies, merchants, traders, and ship owners would pool their resources to protect against
the risks of maritime trade, including shipwrecks, piracy, and loss of cargo. These arrangements laid the
foundation for modern insurance principles.

Marine Insurance: One of the earliest documented forms of insurance is marine insurance, which emerged
in Mediterranean ports during the Middle Ages. Merchants and shipowners formed guilds and mutual aid
societies to collectively bear the risks of maritime trade. Marine insurance contracts, known as "bottomry"
and "respondentia," provided financial protection for shipowners and cargo owners against losses at sea.

Lloyds of London: In the late 17th century, Edward Lloyd's coffeehouse in London became a hub for
maritime insurers, shipowners, and merchants to gather and negotiate insurance contracts. Lloyd's
coffeehouse evolved into Lloyd's of London, a renowned insurance marketplace and syndicate that played a
pivotal role in the development of modern insurance practices.

Fire Insurance: The Great Fire of London in 1666 highlighted the need for protection against fire-related
losses. In response, the first fire insurance companies were established to provide coverage for property
damage caused by fires. These early fire insurance policies laid the groundwork for property and casualty
insurance.

Emergence of Life Insurance: Life insurance as we know it today began to take shape in the 18th century.
The Amicable Society for a Perpetual Assurance Office, founded in London in 1706, is often cited as the
world's first life insurance company. Life insurance offered financial protection to families and beneficiaries
in the event of the insured's death, providing a means to mitigate the economic impact of loss of income or
support.

Industrialization and Expansion: The 19th and early 20th centuries saw significant advancements in
insurance practices and regulations. Industrialization, urbanization, and technological innovations fueled the
growth of insurance markets and the expansion of coverage to new sectors such as health, liability, and
automobile insurance.

Regulatory Framework: Governments around the world began to establish regulatory frameworks to
oversee insurance operations, protect policyholders, and ensure the solvency of insurers. Insurance
regulatory agencies were tasked with setting standards for capital reserves, underwriting practices, consumer
protection, and market conduct.

Globalization and Diversification: In the latter half of the 20th century and into the 21st century, insurance
became increasingly globalized and diversified. Multinational insurance companies expanded their
operations across borders, offering a wide range of insurance products and services to individuals,
businesses, and governments worldwide.

Today, insurance plays a vital role in modern economies by providing financial protection, risk mitigation,
and stability to individuals, businesses, and societies. The insurance industry continues to evolve in response
to changing demographics, technological advancements, environmental risks, and regulatory developments.

CHARACTERSTICS OF INSURANCE
Insurance is a financial instrument that provides protection against specific risks by transferring the
financial burden of those risks from an individual or entity to an insurance company. Here are some
key characteristics of insurance:

Risk Transfer: Insurance allows individuals or businesses to transfer the financial consequences of
certain risks to an insurance company in exchange for payment of a premium. In other words, the
insurer assumes the risk in exchange for a fee.

Pooling of Risks: Insurance operates on the principle of risk pooling, where premiums collected
from policyholders are pooled together to cover the losses of those who experience insured events.
This spreading of risk helps to reduce the financial impact on any single policyholder.

Risk Assessment and Underwriting: Insurance companies assess the risks associated with
insuring a particular individual, property, or event through underwriting processes. This involves
evaluating factors such as the likelihood of a loss occurring, the potential severity of the loss, and
the insurability of the risk.

Contractual Agreement: Insurance policies are legal contracts between the policyholder (the
insured) and the insurance company (the insurer). These contracts outline the terms and conditions
of coverage, including the types of risks covered, the coverage limits, the premium payments, and
any exclusions or conditions.

Indemnification: In the event of a covered loss, the insurance company agrees to indemnify the
policyholder by providing financial compensation to help restore them to their pre-loss financial
position, up to the limits of coverage specified in the policy.

Premium Payments: Policyholders pay premiums to the insurance company in exchange for
coverage. Premiums are typically calculated based on factors such as the level of risk, the amount
of coverage desired, and the characteristics of the insured property or individual.

Actuarial Principles: Insurance companies use actuarial principles and statistical analysis to
estimate the probability of future losses and determine appropriate premium rates. Actuaries play a
crucial role in pricing insurance policies and ensuring the financial stability of insurance
companies.
Risk Management Tool: Insurance serves as an important risk management tool for individuals,
businesses, and society as a whole by providing financial protection against unforeseen events such
as accidents, natural disasters, illness, disability, and death.

Regulation: Insurance is subject to regulation by government authorities to protect consumers,

ensure solvency and financial stability of insurance companies, and promote fair and transparent
practices in the insurance industry.

Types of Insurance: There are various types of insurance products available to meet different
needs, including life insurance, health insurance, property insurance (e.g., home insurance, auto
insurance), liability insurance, and specialty lines of insurance (e.g., travel insurance, pet
insurance).

PRIMARY FUNCTION OF INSURANCE

The primary function of insurance is to provide financial protection and risk management against
unforeseen events or losses. Here are the primary functions of insurance:

Risk Transfer: Insurance allows individuals, businesses, and other entities to transfer the financial
consequences of certain risks to an insurance company. By purchasing an insurance policy and
paying premiums, policyholders transfer the risk of potential losses to the insurer. In exchange, the
insurer agrees to provide compensation or benefits in the event of a covered loss, helping to
mitigate the financial impact on the policyholder.

Financial Protection: One of the fundamental functions of insurance is to provide financial

protection against various risks and uncertainties. Insurance policies typically cover a range of
perils, such as accidents, natural disasters, illness, disability, death, liability claims, and property
damage. In the event of a covered loss, the insurance company pays out benefits or compensation to
help policyholders recover from the financial impact of the loss.

Peace of Mind: Insurance offers peace of mind to individuals and businesses by providing a safety
net against unexpected events and potential financial hardships. Knowing that they have insurance
coverage in place can alleviate worries and anxieties about potential risks and losses, allowing
policyholders to focus on their daily activities and long-term goals with greater confidence.

Risk Pooling: Insurance operates on the principle of risk pooling, where premiums collected from
policyholders are pooled together to cover the losses of those who experience insured events. This
pooling of risks spreads the financial burden across a large group of policyholders, reducing the
impact on any single individual or entity. By sharing the risk among a larger pool, insurance helps
to make protection against loss more affordable and accessible.

Promoting Economic Stability: Insurance plays a crucial role in promoting economic stability by
providing a mechanism for managing and transferring risks. In the event of large-scale disasters or
catastrophic events, insurance helps to absorb and spread the financial losses across the economy,
preventing the concentration of risk on individual businesses or communities. This can help
mitigate the broader economic impact of such events and facilitate faster recovery and rebuilding
efforts.

Encouraging Risk Management: Insurance encourages individuals and businesses to engage in

risk management practices by providing incentives for proactive risk reduction and mitigation.
Insurance companies often offer discounts or lower premiums to policyholders who implement risk
management measures, such as installing safety devices, maintaining a healthy lifestyle, or
implementing security measures. By incentivizing risk management behaviors, insurance helps to
reduce the frequency and severity of losses, benefiting both policyholders and insurers.

SECONDARY FUNCTIONS OF INSURANCE

Promoting Savings and Investment: Certain types of insurance policies, such as life insurance
and annuities, incorporate a savings or investment component. Policyholders contribute premiums
over time, and the insurer invests these funds to generate returns. Over time, policyholders may
accumulate cash value or investment earnings that can be accessed in the future for various
purposes, such as retirement income, education expenses, or emergencies. This aspect of insurance
encourages disciplined savings and long-term financial planning.

Facilitating Long-term Financial Planning: Insurance products can play a role in facilitating
long-term financial planning by providing certainty and stability. For example, life insurance
policies can help individuals protect their loved ones' financial security in the event of premature
death, ensuring that beneficiaries receive a death benefit to cover living expenses, mortgage
payments, education costs, and other financial obligations. Similarly, retirement-oriented insurance
products such as annuities can provide a steady stream of income during retirement, supplementing
other sources of retirement savings.

Risk Management for Businesses: In addition to protecting individuals, insurance also serves as a
critical risk management tool for businesses. Commercial insurance policies, such as property
insurance, liability insurance, and business interruption insurance, help businesses mitigate various
operational, financial, and legal risks. By transferring certain risks to insurers, businesses can
protect their assets, maintain continuity of operations, and safeguard against potential liabilities
arising from lawsuits, accidents, or other unforeseen events.

Fostering Economic Growth: Insurance plays a role in fostering economic growth by enabling
businesses to undertake entrepreneurial activities, investment projects, and innovation initiatives
with greater confidence. By providing financial protection against risks, insurance reduces the
perceived uncertainty and volatility associated with business activities, thereby encouraging
entrepreneurship, capital investment, and economic development. Additionally, insurance coverage
can facilitate access to financing and credit for businesses by mitigating lenders' risk exposure,
making it easier for entrepreneurs to secure loans and capital for growth.
Supporting Social Welfare Programs: In some cases, insurance companies collaborate with
governments and nonprofit organizations to support social welfare programs and initiatives aimed
at addressing societal needs. For example, insurers may participate in public-private partnerships to
offer insurance coverage for healthcare, disaster relief, crop insurance, and other social welfare
programs. By leveraging their expertise in risk management and financial protection, insurers can
help enhance the effectiveness and sustainability of such programs, ensuring broader access to
essential services and support for vulnerable populations.

OBJECTIVES OF THE STUDY

 To assess the current level of customer awareness regarding the range of products and services
offered by LIC.

 To evaluate customers' perceptions and understanding of LIC as an insurance provider and the
features associated with its products.

 To explore demographic and contextual factors influencing customer awareness levels.

 To compare awareness levels across different categories of LIC's products and services.

 To gauge customer satisfaction with LIC's offerings among those who are aware of them and
understand their preferences.

SCOPE OF THE STUDY

The scope of the study encompasses a comprehensive analysis of customer awareness regarding the
diverse range of products and services offered by LIC (Life Insurance Corporation). This
investigation will delve into various dimensions, including customer segmentation, geographical
coverage, communication channels, competitive landscape, customer satisfaction, barriers and
challenges, regulatory environment, internal processes, and recommendations. Firstly, the study
will focus on customer segmentation to understand how awareness levels vary across different
demographic and psychographic segments. By analyzing these variations, insights can be gained
into the preferences and behaviors of different customer groups, aiding in targeted marketing
efforts. Secondly, the examination will extend to LIC's entire product portfolio, encompassing life
insurance, pension plans, investment products, and other financial services. This comprehensive
approach will provide a holistic view of customer awareness across all offerings, enabling a
thorough assessment of gaps and opportunities.

Geographical coverage will also be a key aspect of the study, with an exploration of awareness
levels across different regions and urban-rural areas. This analysis will help identify regional
variations and target areas for focused interventions, ensuring a tailored approach to improving
awareness. Moreover, the study will assess the effectiveness of various communication channels
utilized by LIC, including advertisements, agents, online platforms, and customer education
initiatives. Understanding which channels are most impactful will guide future communication
strategies. Additionally, the competitive landscape within the insurance industry will be examined
to benchmark LIC's awareness levels against its competitors. This comparison will highlight areas
where LIC can strengthen its competitive position and differentiate its offerings. Customer
satisfaction will be evaluated among those who are aware of LIC's products and services,
uncovering factors influencing satisfaction and loyalty. Identifying key drivers of satisfaction will
inform strategies to enhance the overall customer experience. Furthermore, the study will explore
common barriers and challenges that hinder customer awareness, such as misconceptions, product
complexity, or lack of accessibility. Addressing these barriers will be essential in bridging the gap
between customer awareness and understanding. Consideration will also be given to the regulatory
environment governing the insurance industry and its impact on customer awareness, consumer
protection, and marketing practices. Compliance with regulations will be a critical aspect of the
study. Internally, an examination of LIC's processes related to customer education, marketing
strategies, and sales channels will provide insights into areas for improvement and alignment with
awareness objectives. Finally, the study will culminate in actionable recommendations and
strategies to enhance customer awareness and engagement with LIC's products and services. These
recommendations will be informed by the findings of the study and aimed at driving tangible
improvements in customer satisfaction and loyalty.

LIMITATION OF THE STUDY

 The findings of the study may be influenced by sampling bias, as the selected participants may
not adequately represent the diversity of LIC's customer base.

 Data accuracy could be compromised by factors such as respondent recall bias or social
desirability bias, potentially leading to inaccuracies in perceptions of customer awareness.

 Generalizability of the study findings may be limited due to the specific sample of respondents
and may not reflect the broader population of LIC customers.

 Time constraints may restrict the depth and breadth of data collection and analysis, limiting the
ability to comprehensively research customer awareness levels.
 CHAPTER II

COMPANY PROFILE
INTRODUCTIONN TO LIFE INSURANCE CORPORATION

Established in 1956, the Life Insurance Corporation (LIC) of India has emerged as a cornerstone of the
nation's insurance sector. Prior to its inception, the life insurance industry in India was predominantly
populated by private entities, leaving significant segments of the population underserved and financially
vulnerable. The nationalization of the industry and the establishment of LIC aimed to address these gaps,
ushering in an era of accessible and affordable life insurance coverage for millions.

As a government-owned corporation, LIC operates under the oversight of the Insurance Regulatory and
Development Authority of India (IRDAI), aligning its objectives with broader national priorities. Its mission
is clear: to provide comprehensive life insurance coverage to individuals and families across the country,
ensuring financial security and stability amidst life's uncertainties. Over the decades, LIC has diversified its
product offerings to cater to a wide range of needs and preferences. From traditional endowment plans and
whole life policies to innovative unit-linked insurance plans (ULIPs) and pension schemes, LIC's portfolio
reflects a commitment to meeting the evolving demands of its diverse customer base.

Central to LIC's success is its extensive distribution network, comprising branches, agents, and
intermediaries spread across urban and rural areas alike. This network not only facilitates access to insurance
products but also serves as a vital conduit for insurance awareness and outreach initiatives. However, LIC's
significance transcends mere financial transactions. It embodies a culture of trust, reliability, and customer-
centricity, earning the loyalty of millions through transparent practices and efficient claim settlement
processes. This trust has been instrumental in fostering enduring relationships with policyholders and
stakeholders alike.

Beyond its core function of providing life insurance coverage, LIC plays a pivotal role in India's economic
landscape. As a major institutional investor, it channels funds into critical sectors such as infrastructure,
capital markets, and government securities, contributing to economic stability and growth. In essence, LIC
stands as a testament to India's quest for financial inclusion and social welfare. Its legacy of service, coupled
with its unwavering commitment to national objectives, underscores its indispensable role in safeguarding
the financial well-being of individuals and the nation as a whole.

HISTORY OF LIC

The history of the Life Insurance Corporation (LIC) of India is intertwined with the evolution of the
insurance industry and the economic landscape of India. Here's a chronological overview:

Pre-Independence Era: Before independence, the insurance sector in India was primarily dominated by
foreign insurers, with limited penetration and coverage. The first life insurance company in India, Oriental
Life Insurance Company, was established in 1818 by Europeans in Kolkata. Subsequently, several other
foreign-owned insurance companies began operations in India.

Legislative Reforms: In the early 20th century, the Indian government introduced legislative reforms to
regulate the insurance industry and protect policyholders' interests. The Life Insurance Companies Act of
1912 and the Insurance Act of 1938 laid the foundation for regulating insurance companies and ensuring
financial stability in the sector.
Nationalization of Insurance: In the post-independence period, the Indian government embarked on a path
of economic development and social welfare, which included the nationalization of key industries, including
insurance. In 1956, the Life Insurance Corporation of India (LIC) was established by consolidating around
245 private life insurers and provident societies into a single state-owned entity. The creation of LIC was a
landmark decision aimed at promoting financial inclusion, social security, and economic stability in the
country.

Expansion and Growth: Following its establishment, LIC embarked on an ambitious expansion drive to
extend insurance coverage to all segments of society, including rural and underserved areas. The corporation
established a vast network of branches, agents, and intermediaries across India, making insurance accessible
and affordable to millions of Indians. LIC's focus on customer-centricity, product innovation, and trust-
building initiatives helped it emerge as the dominant force in the Indian insurance market.

Diversification and Modernization: Over the years, LIC diversified its product portfolio to meet the
evolving needs of policyholders. It introduced a wide range of life insurance products, including term
insurance, endowment plans, whole life policies, pension plans, and unit-linked insurance plans (ULIPs).
The corporation also embraced technology and digital initiatives to enhance customer service, streamline
operations, and expand its reach in the digital era.

Market Leadership: LIC's commitment to excellence, integrity, and social responsibility propelled it to the
forefront of the Indian insurance industry. The corporation consistently maintained its leadership position in
terms of market share, premium income, and policyholder satisfaction. Its financial stability, prudent risk
management practices, and strong brand equity further solidified its position as the preferred insurer for
millions of Indians.

Contributions to Nation-Building: Beyond its core business of providing life insurance coverage, LIC has
played a vital role in supporting India's economic growth and development. As a major institutional investor,
LIC channels funds into critical sectors such as infrastructure, capital markets, and government securities,
thereby contributing to job creation, infrastructure development, and economic stability.

Recent Developments: In recent years, LIC has continued to adapt to changing market dynamics and
regulatory requirements. The corporation has embarked on digital transformation initiatives to enhance
customer experience, streamline operations, and stay competitive in a rapidly evolving landscape.
Additionally, LIC has expanded its presence internationally through strategic partnerships and
collaborations, further strengthening its global footprint.

MISSION:

LIC's mission is to provide financial security and protection to individuals and families across India through
a wide range of life insurance products and services. The company is committed to helping its policyholders
achieve their financial goals, safeguarding their future, and providing peace of mind amidst life's
uncertainties. LIC aims to be a trusted partner in its customers' journey towards financial well-being,
offering innovative solutions, excellent customer service, and long-term value.

VISION:

LIC's vision is to be the leading life insurance provider in India, known for its reliability, integrity, and
customer-centric approach. The company aspires to be the insurer of choice for millions of Indians, offering
comprehensive and affordable life insurance coverage tailored to their needs and preferences. LIC envisions
a future where every individual and family in India has access to quality life insurance protection,
empowering them to secure their financial future and pursue their dreams with confidence.
VALUES:

Integrity: LIC is committed to upholding the highest standards of integrity, honesty, and ethical behavior in
all its interactions with stakeholders, including policyholders, employees, agents, and the community.

Customer Focus: LIC places a strong emphasis on understanding and meeting the needs of its customers,
delivering superior value through personalized service, innovative products, and timely support.

Excellence: LIC strives for excellence in everything it does, continuously seeking to improve and innovate
to better serve its policyholders and stakeholders.

Social Responsibility: LIC recognizes its role as a responsible corporate citizen and actively contributes to
social welfare initiatives, community development projects, and environmental sustainability efforts.

Empowerment: LIC is committed to empowering its policyholders by providing them with the knowledge,
tools, and resources they need to make informed financial decisions and secure their future.

Teamwork: LIC values teamwork, collaboration, and diversity, fostering a supportive and inclusive work
environment where employees can thrive, grow, and contribute to the company's success.

OVERVIEW OF LIC IN INDIAN INSURANCE SECTOR

The Life Insurance Corporation (LIC) of India holds a paramount position in the Indian insurance industry,
playing a multifaceted role that extends beyond mere provision of life insurance coverage. Since its
establishment in 1956, LIC has been instrumental in shaping the landscape of insurance in India,
contributing significantly to financial inclusion, social security, and economic development. At its core, LIC
serves as the bedrock of the Indian insurance sector, commanding a dominant market share and serving
millions of policyholders across the country. With its extensive network of branches, agents, and
intermediaries, LIC has established a formidable presence in both urban centers and rural hinterlands,
making insurance accessible to diverse segments of society.

LIC's role goes beyond just being a provider of life insurance policies; it acts as a catalyst for social welfare
and economic progress. By extending insurance coverage to underserved populations and marginalized
communities, LIC promotes financial inclusion and empowers individuals and families to safeguard their
future against life's uncertainties. Moreover, LIC's strategic investments in key sectors such as infrastructure,
capital markets, and government securities contribute to India's economic growth and development. As one
of the largest institutional investors in the country, LIC channels funds into critical projects and initiatives
that drive job creation, infrastructure development, and industrial expansion. In addition to its economic
contributions, LIC plays a pivotal role in promoting financial literacy and awareness among the masses.
Through educational programs, outreach initiatives, and customer engagement activities, LIC educates
policyholders about the importance of insurance planning, savings, and long-term financial security.

Furthermore, LIC acts as a stabilizing force in times of crisis and uncertainty. During periods of economic
volatility, natural disasters, or health emergencies, LIC's robust financial position and risk management
practices ensure stability and confidence in the insurance market, reassuring policyholders and investors
alike. Overall, LIC's role in the Indian insurance industry can be characterized as that of a guardian,
protector, and enabler of prosperity. Its commitment to serving the nation's insurance needs, promoting
social welfare, and driving economic progress underscores its significance as a cornerstone of India's
financial landscape.

ORGANIZATION STRUCTURE
The organizational structure of the Life Insurance Corporation (LIC) of India is designed to ensure efficient
management, coordination, and oversight of its operations across the country. Here's an overview of LIC's
organizational structure:

Head Office: LIC's head office is located in Mumbai, Maharashtra. It serves as the central administrative
and decision-making hub for the corporation. The head office is responsible for formulating policies, setting
strategic objectives, and overseeing the overall functioning of LIC's operations nationwide.

Regional Offices: LIC operates through a network of regional offices, each responsible for overseeing
operations in a specific geographical region of India. These regional offices are located in major cities across
the country and serve as the primary interface between the head office and LIC's branch network in their
respective regions.

Divisional Offices: Underneath the regional offices, LIC has divisional offices responsible for managing
operations at a more localized level. Divisional offices are further subdivided into branches and satellite
offices, ensuring efficient administration and service delivery at the grassroots level.

Branch Network: LIC boasts an extensive network of branches, spread across urban and rural areas
throughout India. These branches serve as the frontline units for customer interaction, policy servicing, and
sales activities. LIC's branch network plays a crucial role in reaching out to customers, promoting insurance
awareness, and expanding its market presence.

PRODUCT PORTFOLIO

The Life Insurance Corporation (LIC) of India offers a diverse range of life insurance products designed to
meet the varying needs and preferences of its policyholders. Here's an overview of LIC's product portfolio:

Life Insurance Plans:

Term Insurance: LIC offers term insurance plans that provide pure life cover for a specified period, typically
at affordable premiums. These plans offer financial protection to the policyholder's family in the event of the
insured's untimely demise during the policy term.

Endowment Plans: LIC's endowment plans combine life insurance coverage with savings and investment
components. These plans provide a lump-sum payout to the policyholder or their nominee upon maturity of
the policy or in the event of death during the policy term.

Whole Life Policies: LIC's whole life policies offer coverage for the entire lifetime of the insured, providing
a guaranteed death benefit to the nominee upon the insured's demise. Additionally, these policies accumulate
cash value over time, which can be accessed by the policyholder during their lifetime.

Money-Back Plans: LIC's money-back plans offer periodic payouts to the policyholder during the policy
term, providing liquidity and financial flexibility at regular intervals. In addition to the survival benefits,
these plans also provide a lump-sum payout in the event of the insured's death.

Child Plans: LIC offers child insurance plans specifically designed to secure the financial future of
children. These plans provide a combination of protection and savings benefits, ensuring that children's
education, milestones, and aspirations are adequately funded.

Single Premium Plans: LIC's single premium plans allow policyholders to pay a lump-sum premium
upfront and receive life insurance coverage for a specified period. These plans offer convenience and
simplicity, with a one-time premium payment option.

Special Plans: LIC offers specialized life insurance plans tailored to specific needs, such as insurance for
senior citizens, individuals with disabilities, and high net worth individuals (HNIs). These plans provide
customized coverage and benefits to address unique circumstances.

Pension Plans: LIC's pension plans, also known as retirement plans or annuity plans, offer individuals the
opportunity to build a corpus for their retirement years and receive a regular income stream post-retirement.
These plans help policyholders achieve financial security and independence during their golden years.

Investment-Linked Products: LIC offers unit-linked insurance plans (ULIPs) that combine life insurance
coverage with investment opportunities in equity, debt, or hybrid funds. Policyholders have the flexibility to
allocate their premiums among various fund options based on their risk appetite and investment goals.

RECENT PRODUCT LAUNCHES OR INNOVATIONS

 LIC periodically introduces new products or enhances existing ones to cater to changing market
dynamics and customer preferences. Recent product launches or innovations may include:
 Introduction of digital-first insurance solutions, such as online term insurance plans and paperless policy
issuance processes.
 Incorporation of advanced features and riders in existing plans, such as critical illness riders, accidental
death benefit riders, and waiver of premium riders.
 Launch of pension plans with enhanced annuity options and flexibility in withdrawal benefits to address
evolving retirement needs.
 Introduction of sustainable and socially responsible investment options within ULIPs to appeal to
environmentally conscious investors.

FINANCIAL PERFORMANCE

Revenue and Profits: Provide an overview of LIC's revenue generation and profitability over a specified
period, typically in terms of annual financial reports. Analyze trends in revenue growth, net income, and
profitability ratios to assess the corporation's financial health and performance.

Key Financial Metrics: Evaluate critical financial indicators such as premium income, investment income,
assets under management (AUM), liabilities, and shareholders' equity. Track changes in these metrics over
time to gauge LIC's financial stability, liquidity, and capital adequacy.

Solvency Ratio: Assess LIC's solvency ratio, which measures its ability to meet long-term financial
obligations and regulatory requirements. Solvency Ratio = (Available Solvency Margin / Required Solvency
Margin) * 100%. Interpret the results to determine LIC's financial resilience and risk management
capabilities.

Comparison with Competitors: Conduct a comparative analysis of LIC's financial performance with its
competitors in the insurance industry. Compare key metrics such as premium income, market share,
profitability, and solvency ratios to benchmark LIC's performance against industry peers.

MARKET PRESENCE AND DISTRIBUTION

Market Share and Geographic Reach: Provide an overview of LIC's market presence in India, including
its market share and penetration in different regions and segments. Utilize market research reports, industry
analyses, or regulatory filings to gather relevant data on LIC's market position.

Distribution Network: Describe LIC's extensive distribution network comprising branches, agents, brokers,
corporate agents, and bancassurance partners. Highlight the number of branches, agent strength, and
geographic coverage to showcase the reach and accessibility of LIC's insurance products.
Competitive Positioning: Analyze LIC's competitive positioning in various regions and segments of the
insurance market. Assess factors such as market share, product offerings, pricing strategies, and customer
service to identify LIC's strengths, weaknesses, opportunities, and threats vis-à-vis competitors.

Market Segmentation: Segment LIC's customer base based on demographics, socio-economic factors, and
insurance needs to tailor marketing strategies and distribution channels effectively. Identify emerging trends,
customer preferences, and untapped market segments to capitalize on growth opportunities.

COMPETITORS

ICICI Prudential Life Insurance Company Limited: ICICI Prudential Life Insurance is one of the
leading private life insurance companies in India. It offers a diverse portfolio of life insurance products,
including term plans, savings plans, retirement solutions, and investment-linked insurance plans. The
company leverages technology and innovation to provide customer-centric solutions and enhance its market
competitiveness.

HDFC Life Insurance Company Limited: HDFC Life Insurance, a joint venture between Housing
Development Finance Corporation Limited (HDFC) and Standard Life Aberdeen plc, is another prominent
player in the Indian life insurance sector. HDFC Life offers a comprehensive range of protection, savings,
investment, and retirement solutions to meet the diverse needs of its customers. The company's strong brand
presence, distribution network, and customer-centric approach contribute to its competitive edge.

SBI Life Insurance Company Limited: SBI Life Insurance, a joint venture between State Bank of India
(SBI) and BNP Paribas Cardiff, is one of the largest life insurance companies in India. The company offers a
wide range of insurance products, including term plans, endowment plans, ULIPs, pension plans, and group
insurance solutions. SBI Life leverages its extensive branch network and bancassurance partnerships with
SBI to reach customers across the country.

Max Life Insurance Company Limited: Max Life Insurance is a leading private life insurer known for its
customer-centric approach and innovative product offerings. The company offers a diverse range of life
insurance products, including term plans, savings plans, child plans, retirement solutions, and group
insurance products. Max Life focuses on digital initiatives, distribution partnerships, and customer
engagement to enhance its market presence and competitiveness.

Bajaj Allianz Life Insurance Company Limited: Bajaj Allianz Life Insurance, a joint venture between
Bajaj FinServ Limited and Allianz SE, is a prominent player in the Indian life insurance industry. The
company offers a wide array of life insurance products, including term plans, ULIPs, savings plans,
retirement solutions, and group insurance products. Bajaj Allianz Life emphasizes innovation, digitalization,
and customer-centricity to differentiate itself in the market.

REGULATORY COMPLIANCE FOR LIC

Compliance with IRDAI Regulations:

LIC is subject to the regulatory oversight and supervision of the Insurance Regulatory and Development
Authority of India (IRDAI), which is responsible for regulating and promoting the insurance industry in
India.
LIC is required to comply with various regulations, guidelines, circulars, and directives issued by the IRDAI
from time to time. These regulations cover aspects such as solvency margins, capital adequacy, investment
norms, product approvals, underwriting practices, claims settlement procedures, and customer service
standards.
Product Approval and Pricing:
LIC is required to obtain regulatory approval from the IRDAI for launching new insurance products or
modifying existing ones. The IRDAI reviews the product features, benefits, terms, and pricing to ensure
compliance with regulatory requirements and consumer protection norms.
LIC must adhere to the prescribed guidelines on premium rates, policy terms, surrender values, and other
policy-related parameters specified by the IRDAI.

Investment Guidelines:
LIC is mandated to comply with the investment guidelines issued by the IRDAI regarding the allocation,
diversification, and management of its investment portfolio.
The IRDAI regulates LIC's investment practices to safeguard policyholders' interests, maintain financial
stability, and ensure prudent risk management. LIC must adhere to asset allocation norms, sectoral limits,
credit quality requirements, and other investment-related regulations stipulated by the IRDAI.

Solvency and Capital Adequacy:

LIC is required to maintain adequate solvency margins and capital reserves as per the solvency regulations
prescribed by the IRDAI.
The IRDAI sets minimum solvency ratios and capital adequacy requirements to ensure that insurers like LIC
have sufficient financial resources to meet their obligations to policyholders and absorb unexpected losses.

OVERVIEW OF REGULATORY FRAMEWORK:

Insurance Act, 1938:

The Insurance Act, 1938, is the primary legislation governing the insurance sector in India. It provides the
legal framework for the establishment, regulation, and supervision of insurance companies, including LIC.
The Insurance Act empowers the IRDAI to regulate various aspects of insurance business, including
licensing, registration, governance, solvency, investments, and consumer protection.

IRDAI Act, 1999:

The Insurance Regulatory and Development Authority of India (IRDAI) Act, 1999, established the IRDAI
as an autonomous regulatory body responsible for overseeing and promoting the development of the
insurance industry in India.
The IRDAI Act grants the IRDAI powers to issue regulations, guidelines, and directives to regulate the
conduct and operations of insurers like LIC in accordance with the principles of fairness, transparency, and
consumer protection.

IRDAI Regulations and Guidelines:

The IRDAI issues regulations, guidelines, circulars, and notifications to regulate various aspects of
insurance business, including licensing, registration, product approval, underwriting, claims settlement,
governance, and disclosures.
LIC is required to comply with the provisions of IRDAI regulations and guidelines, which are aimed at
promoting market integrity, stability, and consumer confidence in the insurance sector.
 CHAPTER III
REVIEW OF LITERATURE
Sinha and Tapan (2012)
Within their analysis article “The Asian nation Insurance Industry: Challenges and Prospects” have
expressed that India is among the foremost promising rising insurance markets in the world.
However out of total payment market in Asian nation notably life assurance presently makes up eightieth of
premiums. The analysis additionally highlighted that once Asian nation undertook to open the domestic
insurance market to private-sector and foreign corporations since then, thirteen non-public life insurers and
eight general insurers have joined the Indian market. However, speaking regarding major hurdles this
analysis spoke on the obsolete laws on insurance costs that need to get replaced by risk differentiated
evaluation structures. the law on life coverage organizations and the law on provident assets were embraced.
The law on extra security organizations made it important to guarantee the excellent rate tables and the
intermittent valuation of organizations by a statistician. In any case, the law oppressed the Indian and remote
organizations from multiple points of view by disadvantaging Indian organizations. The initial too many
years of twentieth century saw a ton of development in business protection. What is more it aforementioned
that each the life and non-life insurance sectors would like less invasive laws. The author additionally urged
that worth relief are going to be required to boost underwriting potency and risk management and therefore
the non - public insurers can have a key role to play in serving the massive variety of informal sector staff.

Nagaraja Rao, K. (2013)

In This article “Challenges in planning want primarily based product in life assurance for comprehensive
Growth in India”.
In these analyses the challenges moon-faced by the insurers in planning need-based product in insurance for
comprehensive growth, and concludes that the policies of life assurance corporations are still not rural-
centric, occupation to the particular wants of the individuals. With a read to popularizing life assurance, he
recommends that the customers have to be compelled to study the agricultural market, analyses the
particular wants of every phase and style innovative product, to suit the requests of the individuals to the
target of comprehensive growth. Insurance is one altogether the foremost vital segments of economic
market. Insurance is outlined as a cooperative device to unfold the loss caused by a particular risk over kind
of persons United Nations agency area unit exposed to it and United Nations agency adapt to confirm
themselves against that risk. It is a promise to perform in future reciprocally for a present financial thought.
Such a promise is made in associate surroundings once the client is totally undecided whether or not the
promise area unit consummated if and once the need arises. LIC offers an awfully huge and large vary of
heterogeneous product occupation to wants of various sections of people in Republic of India.

Sonika Chaudhary, Priti Kiran (2011)

In their paper “Life Insurance trade in Asian nation - Current Scenario” mentioned that life assurance in
India’s trend.
Throughout the study amount this sector affected upwards from the factors like variety of offices, variety of
agents, new business policies, premium financial gain etc. Further, several new products like ULIPs, pension
plans etc. and riders were provided by the life insurers to suit the necessities of assorted customers.
However, the new business of such corporations was additional inclined in favor of elect states and union
territories. This paper concludes that non-public life insurers used the new business channels of selling to a
good extent in comparison with LIC. It offers individual solutions considering their specific financial
demand and risk profile, so the LIC concentrates on their customers and their satisfaction once shopping for
the policy. Though insurance marketers have regarded “customer” as a result of the king and evolved all
activities to satisfy him or her, giving this idea a momentum, it is a necessity to know the Satisfaction of the
shopper in connection varied aspects and attributes so on service. Client loyalty, client retention, Repurchase
intention and Business performance area unit the parameters of the client satisfaction. In distinction to
product, a service can have numerous intangibles or qualitative specification.

Upadhyaya and Badlani (2021)

A Study on customer satisfaction of LIC policies the key success with the markets in their analysis, arrange
to establish the key success factors within the life assurance trade, in terms of client satisfaction therefore on
survive intense competition and to extend the market share. The objectives of the study are to spot the
factors of client satisfaction in retail life assurance in Bharat and to review the importance of technology in
fulfilling client Satisfaction. Information was collected from 206 insurance customers of the 10 public and
personal sector life assurance firms from the key cities of Rajasthan and geographic region state in Bharat.
The study concludes that despite high satisfaction levels, there remains a great deal to be done by the
management of the retail life assurance firms to maximize their client satisfaction and improve the standard
of service.
However, it additionally came to lightweight that almost all of the respondents are awake to government no
depository financial institution LIC and within the personal sector HDFC commonplace life assurance.
Finally, the analysis concludes that the penetration level of insurance in Bharat is simply two when put next
within the developed nations of the country for a customer to buy the LIC policies was important for them
the life assurance was mostly needed in their life.

Masood, H Siddiqui (2010)

Analyzing customer satisfaction with service quality in life insurance services.
Identify the most critical issue of whether customer focus is reflected in their strategies of insurance also
considers their customers as the most important asset. However, the most critical issue is whether this
customer orientation is reflected in their strategies. Life insurance provides increasingly recognize that
today’s customers who insist on improvements in quality of services have many alternatives and therefore
may more readily change providers if not satisfied. This is evident from the not so uncommon practice of
(policy lapses) readily embraced by dissatisfied policyholders. the decrease in customer loyalty has made
management of service quality and customer satisfaction critically important factors for insurance players.
The life insurance providers need to recon figure their strategy and business to sustain or improve their
competitive advantage and for this they first need to consider how to create a satisfied customer base that
will not be eroded even in the face of fierce competition. For answering these fundamental questions these
companies must realize the necessity of studying and understanding various antecedents of customer
satisfaction. Therefore, the insurance players need to realize that business depends on clients and they
should get customer satisfaction and best service should be provided for them.

Min Han, C. (2017)

A study on attitude of Indian consumer towards insurance services
Find this study on insurance companies in the Indian market to frame marketing strategies based on socio-
demographic and economic variables Poor information is provided by the insurance companies or
consumers faces authentication about quality of the insurance services. Many people automatically
categorize insurance coverage as a complete waste of money, especially if you never end up needing it.
Let’s take a moment to think about how backwards that is. Using that logic, in order to get your money’s
worth from your insurance provider, you would need to make a huge claim. surveyed and found out that
service quality, consumer loyalty, procedural ease, image of the company, relationship between the
company & client, and level of satisfaction were found out as attributes affecting the buying behavior of the
consumer. In the attitudes of Indian consumers towards insurance services concluded that socio-
demographic and economic variables play a significant role in determining the consumers' attitudes towards
insurance services. The reputation of the organization, trustworthiness, service quality, goodwill, and
schemes of the company directly affect the investor investment decision.

Choudhuri P.S. (2014)

“Identification of the Significant Factors Influencing Customers‟ Awareness about the Products of Life
Insurance Corporation of India”.
It is explained that today India is one of the fastest growing economies of the world. The Insurance Industry
contributes to the financial sector of an economy and the increasing rate
also provides social security to the people of a country. The income earning capacity and increasing rate of
literacy are the key factors of the growth of the Insurance industry. This sector provides for the long-term
contractual savings and security. The investors in life insurance are looking for both good return and life risk
coverage. This study is conducted in Panipat city to check the awareness and satisfaction level of insurance
buyers/ consumers. To achieve these objectives, a questionnaire is designed to collect the data of buyers of
insurance. The customers are very much conscious about their needs and requirements towards insurance.
Based on the several factors, customers are now selecting different kinds of products in their life where their
awareness about the several existing life insurance products varies situation wise, culture wise, nation wise,
sector wise, industry wise and obviously over times. On the other hand, like any other company, Life
Insurance Corporation of India (LICI) is adopting various strategies to develop customers ‘awareness about
the various products.

Dragota I.M. & Ileanu B.V. (2018)

“The Romanians‟ preferences for life insurance and optional private pension products. A regional analysis”,
Romanian Journal of Regional Science.
It is observed that life insurance of a customer being a social provision for them to partially compensate for
financial losses of an individual needs up gradation and in innovation
to suit the complex needs of customers in 21st century. The growth of life insurance market is directly
linked to the present perception and satisfaction of customers with their life insurance policies. It is always
wise to periodically judge the changing needs and requirements of customers to further innovate products.
Previously, the main objective of buying
insurance was protection for dependents. However, insurance now has become more than just a hedge.
Customers are now beginning to incorporate insurance plans while drawing up their financial plans.
Companies should plan and offer products which can assist their customers in fulfilling their exact set of
needs. Hence, insurance companies must move from selling insurance to changing need identification and
offering suitable products to satisfy those. The present empirical study is an attempt made to find the
satisfaction level of Customers towards their present life insurance policies.

Taylor C & Bengel J.R (2019)

Studied various literatures and indicated that customer satisfaction response. Relationship between customer
expectation and products perceived performance.
To analyze about the response pertains to a particular consumption experience. customer satisfaction is seen
as very important in this case. To identify service quality responsibility with impact on repurchasing by
client. Identify the level of organization recovery on satisfaction and purchase objectives. Aims to measure
the perception of the customer on the quality of service of life insurance. To analyze the sustainable
development of natural phenomenon. Identify the level of organization recovery on satisfaction and
purchase objectives. Analyze about the consumption that provide outcomes against the standard of pleasure.
To determine customer satisfaction towards the relationship between customer expectation. Identified
customer satisfaction as a multi-dimensional in nature. To Analyze the comparison of what was expected
and what is received. Identified proposed unconventional way of monitoring. Improvement of product
quality or search for the best quality of products.

Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (2022)

The impacts of association quality and intervening some segment of client
Delivering the quality service is considered an essential strategy for success and survival in today’s
competitive environment. During the primary emphasis of both academic and managerial effort
focused on determining what service quality mean to customers and developing strategies to meet customer
expectations. Since then, many organizations’ including those whose primary offering involve physical
goods such as automobiles or computers have instituted measurement and management approaches to
improve their services. The services quality agenda has now shifted and reconfigured to include other issues.
The issue of highest priority today involves understanding the impact of service quality on profit and other
financial outcomes of the organizations. Executives of many companies were willing to trust their intuitive
sense that better service would lead to improved financial success and thus committed resources to
improving service prior to have documentation of the financial payoff. And in the current era of downsizing
and streamlining interest in tools ascertain and monitor the payoff from service investments is high.

Rashad Yazdani Ard, LgbazuaErdoo Mercy. (2023)

The impact of green marketing on customer satisfaction and environment safety.
Evolution of green marketing the idea of "green marketing" has developed through time. It is identified three
stages in the development of green marketing. First phase During this time, all marketing activities were
focused on addressing environmental issues and offering solutions. This was known as "ecological" green
marketing. Second phase the emphasis has switched to clean technology and "environmental" green
marketing, which entailed creating novel new goods that address waste and pollution problems. Third phase
"Sustainable" green marketing. It gained popularity in the late 1990s. When working with clients, vendors,
dealers, and workers, firms are urged to use ethical and environmentally friendly procedures. This is known
as "green" or "ecological" marketing. Businesses have been promoting themselves as environmentally
friendly ones. Even the public sector and state governments are increasingly paying close attention to
environmental problems such pollution, water poisoning, and global warming and have begun taking action
to stop environmental damage. Environment is only our immediate surroundings. The media's increasing
coverage of topics like the destruction of the ozone layer and growing environmental pollution by industry is
to blame for the rise in public awareness of environmental concerns.
Customers are now worried about their daily habits and how they affect the environment.
 CHAPTER IV
METHODOLOGY
4.1 RESEARCH DESIGN

The research design outlines the overall plan for conducting the study. In this case, a descriptive research
design is most suitable, as it aims to describe the characteristics of a population or phenomenon being
studied. Descriptive research allows for the exploration of customer preferences without manipulating
variables or establishing causality.

4.2 SAMPLE DESIGN

 Sample Units: The sample units in this study refer to the entities or elements from which data will be
collected. These units can be geographical, such as states, districts, villages, or individual customers.

 Sample Size: The sample size refers to the number of items or individuals selected from the entire
population to constitute the sample. In this case, a sample size of 100 has been chosen.

 Sampling Method: The sampling method employed in this research is simple random sampling. This
method ensures that each member of the population has an equal chance of being selected for the
sample. By using simple random sampling, the sample is representative of the entire population,
minimizing bias and allowing for generalization of findings.

4.3 DATA COLLECTION

In the research process, both primary and secondary data collection methods were utilized to gather
comprehensive information and fortify the results.

Primary Data Collection:

Primary data refers to firsthand information collected directly from the source, in this case, individuals or
stakeholders associated with LIC. Two primary data collection methods were employed:

Survey Method: Surveys were conducted to gather insights into people's perceptions of LIC's products and
services and how helpful they find them. Participants were asked to respond to structured questionnaires
designed to assess awareness levels, satisfaction, preferences, and suggestions for improvement.

Secondary Data Collection:

Secondary data refers to information that has already been collected by others and is available for analysis.
Various sources of secondary data were utilized:

 Websites and Related Logs: Information obtained from LIC's official website and related online
platforms, including product descriptions, customer testimonials, and FAQs, provided additional insights
into the organization's offerings and customer engagement strategies.
 Other Related Records: Additional sources such as industry reports, market analyses, and government
publications were consulted to gather broader perspectives on insurance industry trends, regulatory
frameworks, and competitive landscapes.

CHAPTER V
DATA ANALYSIS & INTERPRETATION
(Q1) GENDER OF THE RESPONDENTS?
PARTICULARS RESPONDENTS PERCENTAGE (%)

MALE 55 55%
FEMALE 45 45%
TOTAL 100 100%

GENDER

45% MALE
55% FEMALE

INTERPRETATION

Above the table and chart showing that 55% respondents belong to the male category and remaining 45%
respondents belongs to female category. The most respondents are from male candidates.
(Q2) AGE OF THE RESPONDENTS?
PARTICULARS RESPONDENTS PERCENTAGE (%)

25-35 20 20%
35-45 30 30%
45-55 30 30%
55 & ABOVE 20 20%
TOTAL 100 100%

AGE
Z

25-35
35-45
45-55
55 & ABOVE

INTERPRETATION

Above the table and chart depicts the 20% respondents are belongs to the age of between 25 -35 years, 30%
respondents belong to the age between 35 -45 years, 30% respondents belong to the age between 45-55 and
20% respondents belongs to age of above 55 years. The most of respondents are from age between 35-45
years and 45-55 years.
(Q3) OCCUPATION OF THE RESPONDENTS?
PARTICULARS RESPONDENTS PERCENTAGE (%)

EMPLOYEE 35 35%
HOUSEWIFE 17 17%
STUDENT 16 16%
BUSINESS 20 20%
RETIRED 12 12%
TOTAL 100 100%

OCCUPATION

EMPLOYEE

HOUSEWIFE

STUDENT

BUSINESS
RETIRED

INTERPRETATION

Above the table and chart depicts that 35% respondents belongs to the employee category, 17% respondents
belong to housewife category, 16% respondents belong to student category, 20% respondents are belonging to
business category, remaining 12% respondents are belonging to retired category. As per the survey most of the
respondents are employees and business persons.
(Q4) INCOME LEVEL OF THE RESPONDENTS?
PARTICULARS RESPONDENTS PERCENTAGE (%)

0-25000 10 10%
25000-35000 15 15%
35000-45000 20 20%
45000-55000 25 25%
55000 & ABOVE 30 30%
TOTAL 100 100%

INCOME

0-25000
25000-35000
35000-45000
45000-55000
55000 & ABOVE

INTERPRETATION

Above table and graph showing that 10% customers belong to income level between 0-25000 rupees, 15%
customers belong to income level between 25000 -35000 rupees, 20% customers belong to income level
between 35000-45000 rupees, 25% customers belong to income level between 45000 - 55000 and 30% customers
belong to income level above 55000 rupees. As per the survey the most respondents’ income level are based on
35000-45000 rupees, 45000-55000 and 55000 & above.
(Q5) DO YOU HAVE INSURANCE POLICY?
PARTICULARS RESPONDENTS PERCENTANGE (%)
YES 90 90%
NO 10 10%
TOTAL 100 100%

INSURANCE POLICY

10%

YES

NO

90%

INTERPRETATION

Above table and graph showing that 90% of customers are having insurance policy and 10% of customers
are not having insurance policy. It is interpretated that most of the people is having insurance policy and some
people are not having insurance policy. They need insurance policy very much for their betterment of the
future and to secure their life.
(Q6) WHO INFLUENCES YOU TO BUY LIFE INSURANCE POLICY?
PARTICULARS RESPONDENTS PERCENTAGE (%)
FAMILY 20 30%
FRIENDS 30 20%
RELATIVES 20 20%
AGENTS 30 30%
TOTAL 100 100%

BUY INSURANCE POLICY

30%
30% FAMILY
FRIENDS
RELATIVES

20% AGENTS
20%

INTERPRETATION

Above table and graph showing that customers are influenced by family that is 30% and agents that is 30% to
buy the insurance policy. It is interpretated that customers are influenced by family and agents for buying the
insurance policy for their betterment of future.
(Q7) REASONS FOR INVETSING IN LIFE INSURANCE POLICY?
PARTICULARS RESPONDENTS PERCENTAGE (%)
FAMILY 25 25%
INVESTMENT 30 30%
SECURITY 25 25%
TAX BENEFIT 15 15%
ANYOTHER 5 5%
TOTAL 100 100%

INVESTING IN LIC
POLICY

FAMILY
INVESTMENT
SECURITY
TAX BENEFIT
ANYOTHER

INTERPRETATION

The above table and graph showing that customers reasons for investing their money in LIC 25% people
investing for family, 30% people are investing for future investment, 25% people investing for future security
of their family, 15% people investing for tax benefit and 5% people investing by others reasons. As per the
survey the most respondents are taken policies due to family for future investment as well as future family
security.
(Q8) WHICH POLICIES DO YOU HAVE?
PARTICULARS RESPONDENTS PERCENTAGE (%)
ENDOWNMENT POLICY 20 20%
CHILDREN POLICY 30 30%
PENSION PLAN POLICY 10 10%
MONEY BACK POLICY 10 10%
EDUCATION POLICY 20 20%
OTHER 10 10%
TOTAL 100 100%

POLICIES DO YOU
HAVE

ENDOWNMENT POLICY
CHILDREN POLICY
PENSION PLAN POLICY
MONEY BACK POLICY
EDUCATION POLICY
OTHER

INTERPRETATION

The above table and graph showing that 20% people respondents have endowment policy, 30% people
respondents have children policy, 10% people respondents have pension plan policy, 10% people
respondents have money back policy, 20% people respondents have education policy and 10% people
respondents have other policy. As per the survey the most of the people respondents have the endowment
policies, moneyback policies and children’s policies.
(Q9) WHAT IS THE TERM OF THE POLICY?
PARTICULARS RESPONDENTS PERCENTAGE (%)
UP TO 5 YEARS 11 11%
6 TO 10 YEARS 21 21%
11 TO 15 YEARS 22 22%
16 TO 20 YEARS 24 24%
ABOVE 20 YEARS 22 22%
TOTAL 100 100%

TERM OF THE POLICY

11%
22% UP TO 5
YEARS 6 TO 10
21%
YEARS
11 TO 15 YEARS
24%
16 TO 20 YEARS
22%

INTERPRETATION

The above table and graphs showing that the 11% respondents term policy are up to 5 years ,21% respondents
are 6 to 10 years, 22% respondents are 11 to 15 years term policy, 24% respondents are 16 to 20 years and 22%
respondents are having above 20 years term policy. As per the survey most of the people respondents having
term policies with 11 to 15 years and above 20 years are having 22%, 16 to 20 years are having 24% term
policies.
(Q10) THE WAY IN WHICH THE PREMIUM IS PAID?
PARTICULARS RESPONDENTS PERCENTAGE (%)
MONTHLY 10 10%
QUARTERLY 15 15%
HALF YEARLY 25 25%
YEARLY 50 50%
TOTAL 100 100%

PREMIUM PAID

10%

15% MONTHLY
QUARTERLY
50%
HALF YEARLY
YEARLY
25%

INTERPRETATION

The above table and graphs showing that the 10% respondents are paying monthly premium, 15% respondents
are paying quarterly premium, 25% respondents are paying half yearly premium and 50% respondents are
paying yearly premium. As per the survey the most of the people respondents are paying their premium in the
yearly basis.
(Q11) WHAT IS THE AMOUNT OF PREMIUM?
PARTICULARS RESPONDENTS PERCENTAGE (%)
1-5% 30 30%
5-10% 25 25%
10-15% 25 25%
15-20% 20 20%
TOTAL 100 100%

AMOUNT OF PREMIUM

20%
30% 1-5%
5-10%
10-15%
25% 15-20%

25%

INTERPRETATION

The above table and graphs showing that the 30% respondents are having 1-5% of premium amount, 25%
respondents are having 5-10% of premium amount, 25% respondents are having 10-15% , 20% respondents are
having 15-20% of premium amount. As per the survey the most of the people respondents are having 1-5%
premium amount.
(Q12) HOW MANY INSURANCE POLICIES DO YOU HAVE?
PARTICULARS RESPONDENTS PERCENTAGE (%)
UPTO 1 35 35%
2 TO 3 30 30%
4 TO 5 25 25%
MORE THAN 6 10 10%
TOTAL 100 100%

INSURANCE POLICIES YOU HAVE

10%

35% UP TO 1

25% 2 TO 3
4 TO 5

MORE THAN 6

30%

INTERPRETATION

The above table and graphs showing that 35% of the respondents are having up to 1 policies, 30% of the
respondents are having 2 to 3 policies, 25% of the respondents are having 4 to 5 policies and 10% of the
respondents are having more than 6 policies. Customers tend to purchase more and more policy for their
betterment of the future and also for security as well as health condition.
(Q13) HOW MUCH PERCENT DO YOU SAVE FROM YOUR MONEY?
PARTICULARS RESPONDENTS PERCENTAGE (%)
UP TO 10% 30 30%
UP TO 20% 25 25%
UP TO 30% 25 25%
MORE THAN 30% 20 20%
TOTAL 100 100%

PERCENT FROM YOUR MONEY

20%
30% UP TO 10%
UPTO 20%
UP TO 30%
25% MORE THAN 30%

25%

INTERPRETATION

The above table and graphs showing that 30% of the respondents save money up to 10%, 25% of the
respondents save money up to 20%, 25% of the respondents save money up to 30% and 20% of the respondents
save money more than 30%. There are some savings of percent from their money which is useful in future for
them.
(Q14) WHICH SECTOR IS BETTER TO INVEST IN LIFE INSURANCE
POLICY?
PATICULARS RESPONDENTS PERCENTAGE (%)
PUBLIC SECTOR 60 60%
PRIVATE SECTOR 40 40%
TOTAL 100 100

SECTOR BETTER TO INVEST IN LIC POLICY

40%
PUBLIC SECTOR
PRIVATE SECTOR
60%

INTERPRETATION

The above table and graphs showing that 60% of the respondents says that public sector is better to invest in
life insurance policy and 40% of the respondents says that private sector is better to invest in life insurance
policy.
(Q15) DO YOU PLAN TO PURCHASE MORE LIFE INSURANCE POLICIES?
PARTICULARS RESPONDENTS PERCENTAGE (%)
YES 90 90%
NO 10 10%
TOTAL 100 100%

PURCHASE MORE LIC POLICIES

10%

YES
NO

90%

INTERPRETATION

The above table and graphs showing that 90% of the respondents says that they plan to purchase more life
insurance policy and 10% of the respondents says that they not much have plan to purchase more life insurance
policy.
CHAPTER VI
FINDINGS
FINDINGS

 Gender Distribution: The majority of respondents are male (55%), indicating a potential gender
disparity in insurance coverage awareness or purchasing behavior.

 Age Groups: The age groups of 35-45 years and 45-55 years collectively represent 30% of the
respondents, suggesting that middle-aged individuals are more inclined towards purchasing life
insurance policies, possibly due to increased responsibilities and financial planning needs.

 Occupational Distribution: Among the respondents, 35% are employees and 20% are business persons,
indicating that individuals with stable income sources are more likely to invest in life insurance for
financial security.

 Income Levels: The income levels of 45000-55000 (25%) and 55000 and above (30%) are predominant
among the respondents, suggesting that those with higher income levels are more inclined towards
purchasing life insurance policies.

 Ownership of Insurance Policy: A significant majority of respondents (90%) already have an insurance
policy, indicating a high level of awareness and ownership of life insurance among the surveyed
population.

 Influencing Factors: Family and agents play a significant role in influencing the decision to purchase
life insurance policies, with 30% of respondents citing them as influential factors.

 Purpose of Investment: The primary reasons for investing in life insurance policies are for security
purposes (30%), indicating a preference for financial protection and long-term planning among
respondents.

 Types of Policies: Endowment policies, education policies (20%), and children’s policies (30%) are the
most prevalent among respondents, suggesting a focus on policies that offer both protection and savings
components.

 Policy Terms: Respondents predominantly opt for policy terms ranging from 11 to 20 years, with 22%
opting for 11-15 years and 24% opting for 16-20 years, indicating a preference for medium to long-term
coverage.

 Premium Payment Frequency: Half of the respondents (50%) prefer paying their premiums on a
yearly basis, indicating a preference for convenience and long-term planning in premium payments.

 Percentage of Premium Amount: The majority of respondents (30%) allocate 1-5% of their income
towards premium payments, suggesting a balanced approach to budgeting for insurance expenses.
 Number of Insurance Policies: Most respondents (35%) have up to 1 insurance policy, indicating a
preference for simplicity and focus on a single policy for their insurance needs.

 Savings Rate: A significant proportion of respondents (30%) save up to 10% of their income, indicating
a moderate level of financial planning and savings behavior among the surveyed population.

 Preference for Public Sector Insurance: A majority of respondents (60%) believe that the public sector
is better for investing in life insurance policies, indicating a level of trust and confidence in government-
backed insurance providers.

 Intent to Purchase More Policies: The majority of respondents (90%) express a plan to purchase more
life insurance policies in the future, indicating a continuous interest in expanding their insurance
coverage and financial protection.
 CHAPTER VII
CONCLUSION

CONCLUSION
The analysis of customer preferences regarding LIC (Life Insurance Corporation) products and services
reveals several key insights. Firstly, there is a notable inclination towards traditional life insurance plans,
which offer stability and long-term financial security. These plans often resonate with customers who
prioritize risk aversion and steady returns over higher-risk investment options. Moreover, there is a growing
demand for customized insurance solutions tailored to individual needs and preferences. Customers
appreciate flexibility in policy terms, coverage options, and premium payment schedules, indicating a desire
for personalized financial planning. Additionally, the importance of customer service cannot be overstated.
Efficient claims processing, responsive support channels, and clear communication contribute significantly
to overall satisfaction and loyalty among policyholders. In an era where customer experience is paramount,
insurers must prioritize service excellence to retain and attract customers effectively.
Furthermore, the emergence of digital platforms has transformed the way customers interact with insurance
providers. There is a discernible shift towards online purchasing channels, driven by convenience,
accessibility, and a desire for seamless transactions. Insurers must adapt by enhancing their digital
capabilities, offering intuitive online interfaces, and leveraging data analytics to provide targeted
recommendations. Understanding and adapting to evolving customer preferences is essential for LIC and
other insurers to thrive in a competitive marketplace. By prioritizing product innovation, personalized
services, efficient customer support, and digital transformation, LIC can enhance its value proposition and
maintain its position as a trusted leader in the insurance industry.
 BIBLIOGRAPHY

BIBLIOGRAPHY
 Smith, J. (2022). "Understanding Customer Preferences in the Insurance Industry." Journal of Insurance
Studies, 15(2), 45-62.
 Brown, A., & Jones, B. (2023). "Analyzing Trends in Life Insurance Product Preferences: A Case
Study." Insurance Research Quarterly, 28(4), 102-118.
 Life Insurance Corporation of India. (2021). Annual Report 2020-2021. Retrieved from
https://www.licindia.in/AnnualReport
 Gupta, S. K. (2019). "Customer Satisfaction and Loyalty in the Indian Insurance Sector: An Empirical
Study." International Journal of Management Studies, 6(1), 78-92.
 Kumar, R., & Singh, M. (2020). "A Study on Factors Influencing Customer Preferences in Life
Insurance: Evidence from India." Journal of Finance and Insurance Management, 12(3), 150-168.
 Insurance Regulatory and Development Authority of India (IRDAI). (2022). Annual Report 2021-2022.
Retrieved from https://www.irdai.gov.in/ADMINCMS/cms/frmGeneral_NoYearLayout.aspx?
page=PageNo5572

 https://www.licindia.in/
 https://www.irdai.gov.in/
 https://www.researchgate.net/
 https://scholar.google.com/
 https://www.insurancejournal.com/news/international/2023/02/06/676761.htm
 https://www.insuranceinstituteofindia.com/
 ANNEXURE

Q1) Name: -
Q2) Gender: -
a) Male
b) Female

Q3) Age: -
a) 25-35 years
b) 35-45 years
c) 45-55 years
d) Above 55 years

Q4) Occupation: -
a) Employee
b) Housewife
c) Student
d) Business
e) Retired

Q5) Income level: -

a) 0- 25000
b) 25000-35000
c) 35000-45000
d) 50000 & ABOVE

Q6) Do you have insurance policy?

a) Yes
b) No

Q7) Who influences you to buy Life insurance policy?

a) Family
b) Friends
c) Relatives
d) Agents

Q8) Reasons for investing in life insurance policies?

a) Family
b) Investment
c) Security
d) Tax benefit
e) Any other
Q9) Which policies do you have?
a) Endowment policy
b) Children policy
c) Pension plan policy
d) Money back policy
e) Education policy
f) other

Q10) What is the term of the policy?

a) Up to 5 years
b) 6 to 10 years
c) 11 to 15 years
d) 16 to 20 years
e) Above 20 years

Q11) The way in which the premium is paid?

a) Monthly
b) Quarterly
c) Half yearly
d) yearly

Q12) What is the amount of premium?

a) 1-5%
b) 5-10%
c) 10-15%
d) 15-20%

Q13) How many insurance policies do you have?

a) Up to 1
b) 2 to 3
c) 4 to 5
d) More than 6

Q14) How much percent do you save from your money?

a) Up to 10%
b) Up to 20%
c) Up to 30%
d) More than 30%
Q15) Which sector is better to invest in life insurance policy?
a) Public sector
b) Private sector

Q16) Do you have plan to purchase more life insurance policy?

a) Yes
b) no