A Project Study Report On Training Undertaken at

Titled
CUSTOMER ATTITUDE TOWARDS LIC PRODUCTS

Submitted in partial fulfillment for the Award of degree of Master of Business Administration

Submitted By:Suresh Kumar Jangid MBA III Sem.

Submitted to:Dr.Sonal Jain (H.O.D.)

2010-2012

DEEPSHIKHA COLLEGE OF TECHNICAL EDUCATION,JAIPUR

PREFACE

Practical Knowledge is an important suffix to theoretical knowledge. One cannot merely depend upon the theoretical knowledge. Classroom lectures make the fundamental concept of Management clear. They also facilitate the learning of practical things. However, classroom lectures must be correlated with the practical training situations. It is in the sense that practical training in a company has a significant role to play in the subject of business management. Market Research is indeed an Ancient Art; it has been practiced in one form of the other since the day of Adam and Eve. Its Emergence is of relatively recent origin for success of any business and within this relatively short period, it has joined a carry great deal of importance.

The demand for professional managers is increasing day by day. To achieve profession competence, manager ought to be fully occupied with theory and practical exposure of management. A comprehensive understanding of the principle will increases their decision making ability and sharpens their tools for this purpose. As an essential part of our course, I got the privilege to have training in LIC the work has been carried over a span of 45 Days. The scope of the work under taken by me includes customer response in Jaipur and about their views about our products and services.

ACKNOWLEDGEMENT

I express my sincere thanks to my project guide, Mr. Ritesh Mathur, Designation Branch Manager, for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project.

I would also like to thank the supporting staff Mr. Ashwin Saxena Manager, for his help and cooperation throughout our project.

I would also like to thank the supporting my college faculty Dr. Sonal Jian H.O.D., for her help and cooperation throughout our project.

Suresh Kumar Jangid M.B.A. IIIrd Sem.

EXECUTIVE SUMMARY
The desire to grow money is a natural instinct. But, as simple as the desire is, the process to do so, is just as complex. The only real formula to grow money is, work hard, save regularly and invest wisely. Different investment avenues are available to the investors Retail Banking is a banking service that is geared primarily toward individual consumers. Retail banking entities provide a wide range of personal banking services, including offering current accounts, deposit accounts and savings accounts, bill paying services, as well as debit and credit cards. Through retail banking, consumers may also obtain mortgages and personal loans. Retail banking also provides a facility of investments to its customers. People invest their money in order to get maximum return or profit like by investing in fixed deposits they get a fixed amount of return after the maturity period. The other main motto of people to invest their money is to get assurance of safety of their money. The main investment avenues available in Indian market are:             Insurance Bank fixed deposits Bank recurring deposits Money Market Instruments Mutual Funds (equity) Mutual funds (debt) Post office accounts PPF accounts Commodities Real Estate Government securities Shares

But the option to be chosen by the investor depends upon the requirement as well as the ability or the capacity of the investor to invest.

Retail banking is expected to grow at a CAGR of 28% till 2010 to touch a figure of INR 9,700 billion. This requires expansion and diversification of retail product portfolio, better penetration and faster service mechanism. The project entitled To Learn Key Parameter of Life Insurance Business helped the Bank to understand the scope of retail banking in certain areas of Jaipur city. Products which have been covered in the study were saving a/c, Current a/c, fixed deposits and loans provided by the bank.

The utility of project can be derive from the fact that today banks have diversified products. Now saving account have many types of accounts. Current account have new face i.e. Roaming Current account. Now Central bank came up with the idea of NO FRILLS account. This project includes one fold study. To gather a brief knowledge about the financial products of Standard Chartered Bank like savings a/c, current a/c, term deposits, recurring deposits, overdrafts, loans etc. and services like phone banking, SMS banking, net banking etc. To understand the customers behavior, their expectations & strategies, how they react if any change occurs in methods, policies, interest rates, returns provided by the related bank.

TABLE OF CONTENTS
S. No. 1. 2. 3. Introduction to Industry Introduction to the organization Research methodology 3.1 Title of the project 3.2 Duration of the project 3.3 Objective of study 3.4 Type of research 3.5 Sample size and method of selection sample 3.6 Scope of the Study 3.7 Limitation of study 4. 5. 6. 7. 8. 9. 10. Analysis & Interpretation Facts and findings SWOT Conclusion Recommendation and suggestions Appendix Bibliography 75 76 77 79 80 83 Particulars Pages 7 10 70

HISTORY AND ORGANIZATION OF INSURANCE SECTOR IN INDIA

Insurance in India started without any regulation in the Nineteenth Century. It was a typical story of a colonial era. A few British insurance companies dominating the market serving mostly large urban centres. After the independence, it took a dramatic turn. Insurance was nationalized. First, the life insurance companies were nationalized in 1956, and then the general insurance business was nationalized in 1972. Only in 1999 private insurance companies have been allowed back into the business of insurance with a maximum of 26% of foreign holding. In what follows, we describe how and why of regulation and deregulation. The entry of the State Bank of India with its proposal of bank assurance brings a new dynamics in the game. We study the collective experience of the other countries in Asia already deregulated their markets and have allowed foreign companies to participate. If the experience of the other countries is any guide, the dominance of the Life Insurance Corporation and the General Insurance Corporation is not going to disappear any time soon.

Insurance under the British Raj

Life insurance in the modern form was first set up in India through a British company called the Oriental Life Insurance Company in 1818 followed by the Bombay Assurance Company in 1823 and the Madras Equitable Life Insurance Society in 1829. All of these companies operated in India but did not insure the lives of Indians. They were there insuring the lives of Europeans living in India. Some of the companies that started later did provide insurance for Indians. But, they were treated as "substandard" and therefore had to pay an extra premium of 20% or more. The first company that had policies that could be bought by Indians with "fair value" was the Bombay Mutual Life Assurance Society starting in 1871. The first general insurance company, Triton Insurance Company Ltd., was established in 1850. It was owned and operated by the British. The first indigenous general insurance company was the Indian Mercantile Insurance Company Limited set up in Bombay in 1907. By 1938, the insurance market in India was buzzing with 176 companies (both life and non-life). However, the industry was plagued by fraud.

Hence, a comprehensive set of regulations was put in place to stem this problem (see Table 1). By 1956, there were 154 Indian insurance companies, 16 non-Indian insurance companies and 75 provident societies that were issuing life insurance policies. Most of these policies were cantered in the cities (especially around big cities like Bombay, Calcutta, Delhi and Madras). In 1956, the then finance minister S. D. Deshmukh announced nationalization of the life insurance business.

Monopoly Raj
The nationalization of life insurance was justified mainly on three counts. (1) It was perceived that private companies would not promote insurance in rural areas. (2) The Government would be in a better position to channel resources for saving and investment by taking over the business of life insurance. (3) Bankruptcies of life insurance companies had become a big problem (at the time of takeover, 25 insurance companies were already bankrupt and another 25 were on the verge of bankruptcy). The experience of the next four decades would temper these views.

Insurance Market- Present

The insurance sector was opened up for private participation four years ago. For years now, the private players are active in the liberalized environment. The insurance market have witnessed dynamic changes which includes presence of a fairly large number of insurers both life and non-life segment. Most of the private insurance companies have formed joint venture partnering well recognized foreign players across the globe. There are now 29 insurance companies operating in the Indian market 14 private life insurers, nine private non-life insurers and six public sector companies. With many more joint ventures in the offing, the insurance industry in India today stands at a crossroads as competition intensifies and companies prepare survival strategies in a detariffed scenario. There is pressure from both within the country and outside on the Government to increase the Foreign Direct Investment (FDI) limit from the current 26% to 49%, which would help JV partners to bring in funds for expansion.

There are opportunities in the pensions sector where regulations are being framed. Less than 10 % of Indians above the age of 60 receive pensions. The IRDA has issued the first licence for a standalone health company in the country as many more players wait to enter. The health insurance sector has tremendous growth potential, and as it matures and new players enter, product innovation and enhancement will increase. The deepening of the health database over time will also allow players to develop and price products for larger segments of society.

State Insurers Continue To Dominate

There may be room for many more players in a large underinsured market like India with a population of over one billion. But the reality is that the intense competition in the last five years has made it difficult for new entrants to keep pace with the leaders and thereby failing to make any impact in the market. Also as the private sector controls over 26.18% of the life insurance market and over 26.53% of the non-life market, the public sector companies still call the shots. The countrys largest life insurer, Life Insurance Corporation of India (LIC), had a share of 74.82% in new business premium income in November 2009. Similarly, the four public-sector non-life insurers New India Assurance, National Insurance, Oriental Insurance and United India Insurance had a combined market share of 73.47% as of October 2009. ICICI Prudential Life Insurance Company continues to lead the private sector with a 7.26% market share in terms of fresh premium, whereas ICICI Lombard General Insurance Company is the leader among the private non-life players with a 8.11% market share. ICICI Lombard has focused on growing the market for general insurance products and increasing penetration within existing customers through product innovation and distribution.

INSURANCE COMPANIES IN INDIA

Following is the list of all LIFE & GENERAL INSURANCE COMPANIES granted permission by IRDA.
LIFE INSURERS Websites Public Sector Life Insurance Corporation of India www.licindia.com

Private Sector Allianz Bajaj Life Insurance Company Limited Birla Sun-Life Insurance Company Limited www.allianzbajaj.co.in www.birlasunlife.com

HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com ING Vysya Life Insurance Company Limited Max New York Life Insurance Co. Limited MetLife Insurance Company Limited Om Kotak Mahindra Life Insurance Co. Ltd. SBI Life Insurance Company Limited www.ingvysayalife.com www.maxnewyorklife.com www.metlife.com www.omkotakmahnidra.com www.sbilife.co.in

TATA AIG Life Insurance Company Limited www.tata-aig.com AMP Sanmar Assurance Company Limited www.ampsanmar.com Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com

Reliance Life Insurance Company Limited. Aviva Life Insurance Co. India Pvt. Ltd. Sahara India Life Insurance Co, Ltd. Shriram Life Insurance Co, Ltd. Future Generali Life Insurance

www.reliancelife.com www.avivaindia.com www.saharalife.com www.shriramlife.com

Bharti AXA Life Insurance Company Ltd www.bharti-axalife.com

www.futuregenerli.in

Company Ltd. IDBI Fortis Life Insurance Company Ltd. Canara HSBC Oriental Bank of Commerce Life Insurance Co. Ltd AEGON Religare Life Insurance Company Limited Star Union Dai-ichi Life Insurance Comp. Ltd. DLF Pramerica Life Insurance Co. Ltd
www.idbifortis.com

www.canarahsbclife.com

www.aegonreligare.com www.sudlife.in www.dlfpramerica.com

GENERAL INSURERS Public Sector National Insurance Company Limited New India Assurance Company Limited Oriental Insurance Company Limited United India Insurance Company Limited Bajaj Allianz General Insurance Co. Limited ICICI Lombard General Insurance Co. Ltd. IFFCO-Tokio General Insurance Co. Ltd. Reliance General Insurance Co. Limited Royal Sundaram Alliance Insurance Co. Ltd. TATA AIG General Insurance Co. Limited Cholamandalam General Insurance Co. Ltd. Export Credit Guarantee Corporation HDFC Chubb General Insurance Co. Ltd. REINSURER General Insurance Corporation of India www.gicindia.com www.nationalinsuranceindia.com www.niacl.com www.orientalinsurance.nic.in www.uiic.co.in

Private Sector www.bajajallianz.co.in www.icicilombard.com www.itgi.co.in www.ril.com www.royalsun.com www.tata-aig.com www.cholainsurance.com www.ecgcindia.com

RECENT TRENDS IN INSURANCE SECTOR

It wasnt too long back when the good old endowment plan was the preferred way to insure oneself against an eventuality and to set aside some savings to meet ones financial objectives. The traditional endowment policies were investing funds mainly in fixed interest Government securities and other safe investments to ensure the safety of capital. Thus the traditional emphasis was always on security of capital rather than yield. However, with the inflationary trend witnessed all over the world, it was observed that savings through life insurance were becoming unattractive and not meeting the aspirations of the policyholders. The policyholder found that the sum assured guaranteed on maturity had really depreciated in real value because of the depreciation in the value of money. The investor was no longer content with the so called security of capital provided under a policy of life insurance and started showing a preference for higher rate of return on his investments as also for capital appreciation. It was, therefore found necessary for the insurance companies to think of a method whereby the expectation of the policyholders could be satisfied. The object was to provide a hedge against the inflation through a contract of insurance. Decline of assured return endowment plans and opening of the insurance sector saw the advent of ULIPs on the domestic insurance horizon. Today, the Indian life insurance market is riding high on the unit linked insurance plans.

ASSOCIATION OF INSURANCE COMPANIES IN INDIA

To protect the interests of holder of insurance policy and to regulate, promote and ensure orderly growth of the insurance industry Insurance Regulatory and Development Authority (IRDA) was established. Under the new dispensation Indian insurance companies in private sector were permitted to operate in India with the following conditions:  Company is formed and registered under the Companies Act, 1956  The aggregate holdings of equity shares by a foreign company, either by itself or through its subsidiary companies or its nominees, do not exceed 26%, paid up equity capital of such Indian insurance company  The company's sole purpose is to carry on life insurance business or general insurance business or reinsurance business.  The minimum paid up equity capital for life or general insurance business is 100crores  The minimum paid up equity capital for carrying on reinsurance business has been prescribed as 200crores

ROLE & FUNCTIONS OF IRDA:

Section 14 of IRDA Act, 1999 lays down the duties, powers and functions of IRDA.. (1) Subject to the provisions of this Act and any other law for the time being in force, the Authority shall have the duty to regulate, promote and ensure orderly growth of the insurance business and re-insurance business. (2) Without prejudice to the generality of the provisions contained in sub-section (1), the powers and functions of the Authority shall include, (A) Issue to the applicant a certificate of registration, renews, modify, withdraw, suspend or cancel such registration (B) Protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of

insurance (C) Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents (D) Specifying the code of conduct for surveyors and loss assessors (E) Promoting efficiency in the conduct of insurance business (F) Promoting and regulating professional organizations connected with the insurance and re-insurance business (G) Levying fees and other charges for carrying out the purposes of this Act (H) Calling for information from, undertaking inspection of, conducting enquiries and investigations including audit of the insurers, intermediaries, insurance intermediaries and other organizations connected with the insurance business; (I) Control and regulation of the rates, advantages, terms and conditions that may be offered by insurers in respect of general insurance business not so controlled and regulated by the Tariff Advisory Committee under section 64U of the Insurance Act, 1938 (4 of 1938) (J) Specifying the form and manner in which books of account shall be maintained and statement of accounts shall be rendered by insurers and other insurance intermediaries (K) Regulating investment of funds by insurance companies; (L) Regulating maintenance of margin of solvency; (M) Adjudication of disputes between insurers and intermediaries or insurance intermediaries (N) Supervising the functioning of the Tariff Advisory Committee (O) Specifying the percentage of premium income of the insurer to finance schemes for promoting and regulating professional organizations referred to in clause (f) (P) Specifying the percentage of life insurance business and general insurance

business to be undertaken by the insurer in the rural or social sector (Q) Exercising such other powers as may be prescribed.

REGULATORY ACTS:
A number of acts govern the insurance sector  The Insurance Act, 1938 The Insurance Act, 1938 was the first legislation governing all forms of insurance to provide strict state control over insurance business.  Life Insurance Corporation Act, 1956 Even though the first legislation was enacted in 1938, it was only in 19 January 1956, that life insurance in India was completely nationalized, through a Government ordinance. The Life Insurance Corporation Act, 1956 effective from 1.9.1956 was enacted in the same year to, form Life Insurance Corporation after nationalization of the 245 companies (both Indian and foreign origin) into one entity.  General Insurance Business (Nationalization) Act, 1972 The General Insurance Business (Nationalization) Act 1972 was enacted to nationalize the 100 odd general insurance companies and subsequently merging them into four companies. All the companies were amalgamated into National Insurance, New India Assurance, Oriental Insurance, United India Insurance.  Insurance Regulatory and Development Authority Act, 1999 Till 1999, there were not any private insurance companies in Indian insurance sector. The Govt. of India, then introduced the Insurance Regulatory and Development Authority Act in 1999, thereby de-regulating the insurance sector and allowing private companies into the insurance. Further, foreign investment was also allowed and capped at 26% holding in the Indian insurance companies.

COMPANY PROFILE

In 1955, parliamentarian Feroze Gandhi raised the matter of insurance fraud by

owner's of private insurance companies. In the ensuing investigations, one of India's wealthiest businessmen, Ram Kishan Dalmia, owner of the Times of India newspaper, was sent to prison for two months. Eventually, the Parliament of India passed the Life Insurance of India Act on 1956-06-19, and the Life Insurance Corporation of India was created on 1956-09-01

History of LIC of India

The first 150 years of the British Rule in India were characterized by turbulent economic conditions. The first war of independence in 1857, the World Wars 1 and 2 (1914-1918 and 1939-45) and India's national struggle for freedom in between had adverse effect on the economy. In addition to this the period of world wide economic crisis in between the two World Wars termed as the period of Great Depression led to the high rate of bankruptcies and liquidation of most Life Insurance Companies in India that existed during that time. These occurrences led to loss of faith in insurance of the people of India.

INTRODUCTION
Over its existence of around 50 years, Life Insurance Corporation of India, which commanded a monopoly of soliciting and selling life insurance in India, created huge surpluses, and contributed around 7 % of India's GDP in 2006. The Corporation, which started its business with around 300 offices, 5.6 million policies and a corpus of INR 459 million, has grown to 2,048 offices servicing around 180 million policies and a corpus of over INR 3.4 trillion. The organization now comprises 2048 branches, 100 divisional offices and 8 zonal offices, and employs over 1 million agents. It also operates in 12 other countries, primarily to cater to the needs of Non Resident Indians. With the change in the India's economic philosophy from the early 1990s, and the subsequent relaxation of state control over several sectors of the economy, the monopolistic position of the Life Insurance Corporation of India was diluted, and it has had to compete with a number of other corporate entities, Indian as well as transnational Life Insurance brands.

NETWORK OF LIC:
All Life Insurance Corporation branches in the country would be interconnected under Metro Area Network (MAN) . Speaking at the function, K Vaidyalingam, LIC southern zonal manager, said about 1500 branches would be getting covered under MAN in which the premium amount of the policy holder could be remitted in any branch. Besides, the policy holder gets his status report, policy position, revival and quotation from the network. In every one hour the system got upgraded, he said.

In southern region there are about 10 lakh new policy holders with a business of Rs 6500 crore. About settlement of claims, 92 per cent of policies were settled on or before maturity, he said, adding, LIC was in a better position and 100 per cent connectivity was taking place. Kottayam stood third in premium collection during the period between April to August 2002, the first being Kozhikode and Thiruvananthapuram in second position in southern region. The premium amount collected in 2001 was Rs.74,000 crore through 2.32 crore new policies by 8.2 lakh agents. LIC has introduced a new group insurance scheme for Corporation Bank deposit holders.

INTERNATIONAL OPERATIONS/ASSOCIATES:
LIC has always acknowledged the need to expand. Our expanding efforts have been consistent and are evident though our associations given below for your reference.

INTERNATIONAL OPERATIONS
       LIC Fiji LIC Mauritius LIC United Kingdom LIC (International) B.S.C (C), Bahrain LIC (Nepal) Ltd LIC (Lanka) Ltd Saudi Indian Company for Co-op. Insurance, KSA.

 LIC Mauritius Offshore Ltd.  LIC Co-ordinating Office in India

ASSOCIATES
 LIC Housing Finance Ltd.  LICHLF Care Homes Ltd.  LIC Mutual Fund AMC Ltd.

PRODUCTS AND SERVICES OF LIC

W hole Life w ith Profits Plan - 002 FEATURES:

This plan is mainly devised to create an estate for the heirs of the policyholder as the plan basically provides for payment of sum assured plus bonuses on the death of the policyholder. However, considering the increased longevity of the Indian population, the Corporation has amended the above provision, thereby proving for payment of sum assured plus bonuses in the form of maturity claim on completion of age 80 years or on expiry of term of 40 years from date of commencement of the policy whichever is later. The premiums under the policy are payable up to age 80 years of the policyholder or for a term of 35 years whichever is later. If the payment of premium ceases after 3 years, a paid-up policy for such reduced sum assured will be automatically secured provided the reduced sum assured exclusive of any attached bonus is not less than Rs.250/-. Such reduced paid-up policy is not entitled to participate in the bonus declared thereafter but the bonuses already declared on the policy will remain attach, provided the policy is converted in to a paid-up policy after the premiums are paid for 5 years.

Suitable For:
This policy is suitable for people of all ages who wish to protect their families from financial crises that may occur owing to the policy holder's premature death.

BENEFITS
Survival benefit:
Sum assured plus accrued bonuses and the terminal bonuses, if any; on the policyholder attaining age 80 years or on expiry of term of 40 years from the date of commencement of the policy whichever is later.

Death benefit:
Sum assured plus accrued bonuses and the terminal bonuses, if any, on the death of the policyholder are paid to his/her nominees/heirs.

LIMITED PAYMENT WHOLE LIFE - PLAN 005 (WITH PROFITS) FEATURES:

This is the best form of life assurance for family provision since it enables the Life Assured to pay all the premiums during the ordinarily vigorous and most productive years of life. He need not pay any premium in the later stages of life if and when his conditions might become adverse. With Profits Limited Payments Policies do not cease to participate in profits after completion of the premium paying period but continue to share in the periodical Bonus Distribution until the death of the Life Assured. The Without-Profit option is available under Table no. 3. If the policyholder pays at least 3 years' premiums and then discontinues paying any more premiums, a reduced paid-up assurance policy comes into force. Such a reduced paid-up Policy will not be entitled to participate in the profits declared. Thereafter, but such Bonus

as has already been declared on the Policy will remain attached thereto. The premium paying term under this plan is five years minimum and 55 years maximum.

BENEFITS
Survival benefits: If the Life Assured survives the premium paying period and the policy continues in full force, provided all premiums have been paid, but no further premiums are required to be paid. Death Benefits: Sum Assured plus Bonuses accrued and vested in the policy. Plan Parameters: Minimum Entry age Sum assured (Rs.) Term (years) 12 (nearer birthday) 50000 5 60 NO LIMIT 55 (max. Prem ceasing age is 70) Maximum

Mode of Payment

Maximum premium paying period

Policy loan available

Yearly, half yearly, quarterly, monthly, salary saving scheme

80 yrs. of age or 40 yrs. Yes of premium paying term from the date of

commencement whichever is later.

ENDOWMENT WITH PROFIT PLAN - 014

FEATURES: Moderate Premiums High bonus High liquidity Savings oriented

This policy not only makes provisions for the family of the Life Assured in event of his early death but also assures a lump sum at a desired age. The lump sum can be reinvested to provide an annuity during the remainder of his life or in any other way considered suitable at that time. Premiums are usually payable for the selected term of years or until death if it occurs during the term period.

SUITABLE FOR: Being an endowment assurance policy, this plan is apt for people of all ages and social groups who wish to protect their families from a financial setback that may occur owing to their demise. The amount assured if not paid by reason of his death earlier will payable at the end of the endowment term where it can be invested in an annuity provision for the rest of the policyholder's life or in any other way he may think most suitable at that time. BENEFITS Disability Benefit: In case policy holder becomes totally and permanently disabled due to an accident before reaching the age of 70 and the policy is in full force, he will not be required to pay further premiums, (the Disability Benefit is available in respect of the first Rs.20000 sum assured on anyone life) and the policy will continue to be in force. Accident Benefit: By paying a small extra premium of Rs. 1 per Rs. 10007- sum assured per year he or his family are entitled to the following benefits on death or permanent disability caused by accident. Even students above the age of 18 years can avail of this benefit. Premium Stoppage: If payment of premiums ceases after at least THREE years' premiums have been paid, a free paid-up policy for a reduced sum assured will be automatically secured provided the reduced sum assured, exclusive of any attached bonus, is not less than

Rs. 250/-. The reduced sum assured will become payable on the event as stipulated in the policy. Bonus: Is there anything extra payable besides the sum assured at the time of claim settlement? Yes, but only if it is a 'with profits' policy. Every year the Life Insurance Corporation distributes its surplus among policyholder to 'with profits' polices in the form of bonuses. Substantial bonuses have been declared in the past after each valuation of policy liabilities. Survival benefits: Payment of full Sum Assured + Vested Bonus + Final additional bonus, if any. Death Benefits: Payment of full sum assured + Vested Bonus. Plan Parameters: Minimum Entry age Sum assured (Rs.) Term (years) 12 50000 5 65 NO LIMIT 55 Maximum

Mode of Payment

Maximum premium paying period

Policy loan available

Monthly, Quarterly, Half Yearly, Yearly, Salary Saving Scheme.

75 years.

Yes

ANMOL JEEVAN -1 (WITHOUT PROFITS)

BENEFITS On Death during the Term of the Policy: Sum Assured On Maturity RESTRICTIONS (A) Minimum age at entry (B) Maximum age at entry (C) Maximum age at maturity (D) Minimum Term (E) Maximum Term (F) Minimum Sum Assured (G)Maximum Sum Assured : : ; : : : : 18 years (completed) 55 years (nearer birthday) 65 years 5 years 25 years Rs. Five Lakh Rs. Three Crore (Inclusive of all term Assurance plans) Note: The policy would be issued in multiples ofRs. one lakh for Sum Assured above Rs. five lacs.. (H) Mode of Premium Payment: Yearly, Half- Yearly and Single premium. : Nil

(G)

Rebates: Sum Assured Rebate: NIL in case of regular premium policies and Re. 1 Sum Assured for policies ofRs.25 lakh and above in case of single premium policies.

Mode Rebate: 1% of Annual premium for yearly mode and nil for Half-Yearly mode.

UNDERWRITING, AGE PROOF AND MEDICAL REQUIREMENTS:

The plan is available to Standard and Sub-standard fives (upto Class VIEMR). This plan is also available to female lives (category I and II lives only) and to physically handicapped persons subject to certain conditions. Standard age proof will have to be submitted along with the Proposal Form.

PAID-UP AND SURRENDER VALUE:

The policy will not acquire any paid-up value. No Surrender Value will be available under this plan.

GRACE PERIOD FOR NON-FORFEITURE PROVISIONS:

A grace period of 15 days will be allowed for payment of yearly or half-yearly premiums. If death occurs within this period and before the payment of the premium then due, the policy will still be valid and the Sum Assured paid after deduction of the said premium as also unpaid premiums falling due before the next policy anniversary of the Policy. If the premium is not paid before the expiry of the days of grace, the Policy gets lapsed.

REVIVAL
If the Policy has lapsed, it may be revived during the life time of the Life Assured, but before the date of expiry of policy term, on submission of proof of continued insurability to the satisfaction of the Corporation and the payment of all the arrears of premium together with interest at such rate as may be prevailing at the time of the payment. The corporation reserves the right to accept or decline the revival of discontinued policy. The revival of the discontinued policy shall take effect only after the same is approved by the Corporation and is specifically communicated to the Life Assured.

PAYMENT OF CLAIMS
No Claims concession will be applicable to this Policy.

BACK-DATING INTEREST
The policy can be back dated within the financial year. No dating back interest shall be charged.

BENEFITS
Survival benefits: If one or both the lives survive to the maturity date, the sum assured, along with the accumulated bonus, is payable. Death Benefits: In case either of the couple dies during the policy's term, two things happen. One, LIC pays to the surviving spouse the full sum assured. And, two, the policy continues

on the life of the surviving partner without him/her having to pay any further premiums, i.e. the life cover on the survivor continues free of cost. The sum assured is again be payable on the death of the other partner hi case both the husband and wife were to die during the term of the policy. Vested bonus would also be paid along with the sum assured on the second death.

NEW INSURANCE SCHEMES

Universal Health Insurance Scheme: The Universal Health Insurance policy is available to groups of 100 or more families. The policy provides for reimbursement of medical expenses upto Rs.30000/- towards hospitalization floated amongst the members of the family, death cover due to an accident for Rs.25000 to the earning head of the family and compensation due to loss of earning head of the family @ Rs.50/- per day upto a maximum of 15 days, after a waiting period of three days, when the earning head of the family is hospitalized. The premium under the policy is Rs. 1! - Per day (Le. Rs.365/-per annum) for an individual, Rs. 1.50 per day for a family of five limited to spouse and children (i.e. Rs.548 per annum), and Rs.2/- per day (i.e. Rs. 730 per annum) for covering dependent parents within the overall family size of seven. A subsidy of Rs. 100 per year towards annual premium for "Below Poverty Life" families is also provided under the Scheme. For purpose of this policy HOSPITAL means: Any Hospital/Nursing home registered with the local authorities and under the supervision of a registered and qualified Medical practitioner. Hospital, Nursing Home runs by Government.

Enlisted hospitals run by NGOs/ Trusts/ selected private hospitals with fixed schedule of charges.

Hospitalization should be for a minimum period of 24 hours.

However, this time limit is not applied to some specific treatments and also where due to technological advancement hospitalization for 24 hours may not be required.

Main Exclusions:
All pre-existing diseases. Corrective, cosmetic or aesthetic dental surgery or treatment, Cost of spectacles, contact lens and hearing aid. Primarily diagnostic expenses not related to sickness/injury. Treatment for Pregnancy, Childbirth, Miscarriage, abortions etc.

Age Limitations:
This policy covers people between the age of 3 months to 65 years.

Floater Basis:
The benefit of family' will operate on floater basis i.e. the total reimbursement of Rs. 30,000/- can be availed of individually or collectively by members of the family.

INSURANCE PLANS
As individuals it is inherent to differ. Each individual's insurance needs and requirements are different from that of the others. LIC's Insurance Plans are a policy that talk to you individually and gives the most suitable options that can fit ones' requirement.

Children Plans Jeevan Anurag Komal Jeevan Marriage Endowment Or Educational Plan Annuity

y y

CDA Endowment Vesting y At 21 CDA Endowment Vesting y At 18 Jeevan Kishore Child Career Plan y y

y y

Jeevan Chhaya Child Future Plan

Plans for Handicapped Dependents Jeevan Aadhar Jeevan Vishwas

y y

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

y y y y

y y

Plans for high worth individuals Jeevan Shree-I Jeevan Pramukh

y y

Money Back Plans y y y y y y y The Money Back Policy-20 Years The Money Back Policy 25 Years Jeevan Surabhi-15 Years Jeevan Surabhi-20 Years Jeevan Surabhi-25 Years Jeevan Rekha (closed for sale) Bima Bachat

Special Money Back Plan for Women y Jeevan Bharati

Whole Life Plans

y y y y y y

The Whole Life Policy The Whole Life Policy Limited Payment The Whole Life Policy Single Premium Jeevan Rekha (closed for sale) Jeevan Anand Jeevan Tarang

Term Assurance Plans y y y y y Two Year Temporary Assurance Policy The Convertible Term Assurance Policy Anmol Jeevan-I Amulya Jeevan Jeevan sathi

Unit plans: Unit plans are investment plans for those who realize the worth of hard-earned money. These plans help you see your savings yield rich benefits and help you save tax . Jeevan plus Future plus Bima plus Market plus Money plus

y y y y y

y y

Profit plus Fortune plus

MARKET PLUS
"IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER"

LIC's MARKET PLUS:

This is a unit linked deferred pension plan. You can take the plan with or without risk cover. You can also choose the level of cover within the limits, which will depend on whether the policy is a Single premium or Regular premium contract and on the level of premium you agree to pay. The allocated premiums will be applied to purchase units as per the Fund type chosen. Your Unit Account will be subject to deduction of charges as specified in the Policy Conditions. The value of the units in the Unit Fund may increase or decrease, depending on the investment return of the assets representing the chosen Fund. i. Payment of Premiums: You may pay premiums regularly at yearly, halfyearly or quarterly intervals over the term of the policy. The minimum annual premium will be Rs.5, OOO/- increasing thereafter in multiples of Rs. 1, OOO/-. Alternatively, a Single premium can be paid subject to a minimum of Rs. 10,000 and thereafter in multiples of Rs.l, 000. ii. Benefits: A) Death Benefit: If the Life cover is opted for, the Sum Assured under the Basic Plan together with the Fund Value of units either as a lump sum or as pension. In case the policy is taken without life cover, then the Fund Value of the units held in the Policyholder's Unit Account shall be payable either as a lump sum or as a pension.

The amount of pension will depend on the then prevailing immediate annuity rates under the annuity option chosen. On your surviving to the date of vesting, the Fund Value of the units held in your Unit Account will compulsorily be utilized to provide a pension based on the then prevailing immediate annuity rates under the relevant annuity option. However, you may opt to commute up to one-third of the Benefit to be paid as a lump sum. Further, you may choose to purchase pension from LIC or other life insurance company.

Accident Benefit Option: If you have opted for life cover, you may opt for
Accident Benefit equal to life cover subject to minimum Rs. 25,000 and maximum Rs. 50 lakh (taken all policies with LIC of India and other insurers). In case of death by Accident, an additional sum equal to Accident benefit will be payable.

Eligibility Conditions And Other Restrictions:

Basic Plan Minimum Age at entry Maximum Age at entry : : 18 years completed 70 years (age nearer birthday). However if life cover is opted for, then 65 years 40 years (age last birthday) 75 years (age last birthday) 5 years Rs. 25,000 for Single premium Rs. 50,000 for Regular premium Maximum Sum Assured : Single Premium Equal to single premium Regular Premium 20 times of the annualized premium

Minimum Age at vesting Maximum Vesting Age Minimum Deferment Term Minimum Sum Assured

: : : :

i.

Investment of Funds: The premiums allocated to purchase units will be strictly invested according to the investment pattern committed in various fund types. Various types of fund and their investment pattern will be as under: Short-term Investment in investments such Listed Equity as money market Shares instruments (including Govt. Securities & Corporate Debt) Not less 80% Not less 65% than 100% Nil

Fund Type

Bond Fund

Secured Fund

than Not more 85%

than Not less than 15% & not more than 35% than Not less than 30% & not more than 50% than Not less than 60% & not more than 80%

Balanced Fund

Not less 50%

than Not more 70%

Growth Fund

Not less 20%

than Not more 40%

ii.

The Policyholder has the option to choose any ONE of the above 4 funds. In case no fund has been opted for, the allocated premiums shall, by default, be invested in the SECURED FUND.

iii.

Method of Calculation of Unit price: Units will be allotted based on the

Net Asset Value (NAV) of the respective fund as on the date of allotment There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be computed on daily basis and will be based on investment in Government / Government Guaranteed Securities /

Corporate Debtnt performance, Fund Management Charge and whether fund is expanding or contracting under each fund type.

iv.

Charges under the Plan: Units will be allotted based on the Net Asset
Value (NAV) of the respective fund as on the date of allotment. There is no BidOffer spread (the Bid price and Offer price of units will both be equal to the NAV). The NAV will be computed on daily basis and will be based on investment performance, Fund Management Charge and whether fund is expanding or contracting under each fund type. (A) Premium Allocation Charge: This is the percentage of the premium appropriated towards charges from the premium received. The balance known as allocation rate constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below:

For Single premium policies: 3.3% For Regular premium policies: Premium Band (per annum) Allocation charge First Year 5,000 to 75,000 75,001 to 1,50,000 1,50,001 to 3,00,000 3,00,001 to 5,00,000 5,00,001 and above 16.50% 15.75% 15.00% 14.25% 13.50% Thereafter 2.50% 2.50% 2.50% 2.50% 2.50%

Allocation charge for Top-up: 1.25% (B) Charges for Risk Covers: Mortality Charge: This is the cost of insurance cover. These are age specific and will be taken every month.

Accident Benefit charge: This is the cost of Accident Benefit rider and will be levied every month at the rate of Rs. 0.50 per thousand Accident Benefit Sum Assured per policy year. vi. (C) Other Charges: Policy Administration charge: Rs. 60/- per month during the first policy year and Rs. 207- per month thereafter, throughout the term of the policy. Fund Management Charge: This is the charge levied as a percentage of the value of units and shall be appropriated by adjusting NAV at following rates: 0.75% p.a. of Unit Fund for Bond Fund 1.00% p.a. of Unit Fund for ?Secured? Fund 1.25% p.a. of Unit Fund for Balanced Fund 1.50% p.a. of Unit Fund for Growth Fund. Switching Charge: This is the charge levied on switching of monies from one fund to another. Within a given policy year 4 switches will be allowed free of charge. Subsequent switches in that year shall be subject to a switching charge ofRs. 100 per switch. Bid/Offer Spread: Nil. Surrender Charge: Nil Service Tax Charge: A service tax charge shall be levied on the Mortality and Accident Benefit rider charge, if any, on a monthly basis. The level of this charge will be as per the rate of service tax as applicable from time to time. Presently, the rate of Service Tax is 12% with an educational cess at the rate of 2% thereon and hence effective rate is 12.24%. Miscellaneous Charge: This is a charge levied for an alteration within the contract, such as reduction in policy term, change in premium mode, etc. An alteration may be allowed subject to a charge of Rs. 50/-. (D) Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except the premium allocation charge and charges for risk covers, with the prior approval of IRDA.

vii.

Although the charges are reviewable, they will be subject to a cap for which please refer to the policy document.

viii.

Surrender: The surrender value, if any, is payable only after the completion of the third policy anniversary both under Single and Regular premium Contract. No partial withdrawal of units will be allowed under this plan.

ix.

Other Features: i) Top-up (Additional Premium): The policyholder can pay additional premium in multiples of Rs.l, 000 without any limit at anytime during the term of the policy. In case of yearly, half-yearly or quarterly mode of premium payment such Top-up can be paid only if all premiums have been paid under the policy. ii)Switching: You can switch between any fund types during the policy term subject to switching charges, if any. iii) Discontinuance of premiums and revival: If premiums are payable yearly, half-yearly or quarterly and the same have not been duly paid within the days of grace under the Policy, the Policy will lapse. A lapsed policy can be revived during the period of two years from the due date of first unpaid premium. If you have opted for life cover, under Regular premium policies where at least 3 years' premiums have been paid, and the subsequent premiums are not paid, the life cover and accident benefit cover, if any, will be compulsorily available under the policy and the charges for the same if any, shall be taken, in addition to other charges, by canceling an appropriate number of units out of the Policyholder's Unit Account every month subject to the following : two years from the due date of first unpaid premium, or two years from the due date of first unpaid premium, or till such period that the Policyholder's Unit Account reduces to one annualized premium, whichever is earlier.

iv) Increase / decrease of benefits: No increase (except to the extent of Topup stated above) or decrease of benefits will be allowed under the plan. iiv) Conversion to annuity at vesting date: The rate at which the amount at vesting date will be converted to an annuity is not guaranteed and will be based on the prevailing immediate annuity rates under the relevant annuity option at the vesting date. x. xi. i) Reinstatement: A policy once surrendered cannot be reinstated, Risks borne by the Policyholder: Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. ii) The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. iii) Life Insurance Corporation of India is only the name of the Insurance Company and LIC's Market Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. iv) Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. v) The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. vi) All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time. xii. Cooling off period: If you are not satisfied with the Terms and Conditions' of the policy, you may return the policy to us within 15 days. xiii. xiv. xv. Loan: No loan will be available under this plan. Assignment: Assignment will not be allowed under this plan. Exclusions: In case the Life Assured commits suicide at any time, the

Corporation will not entertain any claim by virtue of the policy except to the extent of the Fund Value of the units held in the Policyholder's Unit Account on death.

Benefit Illustration Statutory warning some benefits are guaranteed and some benefits are variable with returns based on the future performance of your life insurance company. If your policy offers guaranteed returns then these will be clearly marked guaranteed in the illustration table on this page. If your policy offers variable returns then the illustrations on this page will show two different rates of assumed investment returns. These assumed rates of return are not guaranteed and they are not upper or lower limits of what you might get back as the value of your policy is dependant on a number of factors including future investment performance.

BASIC PLAN WITH LIFE COVER

Frequency of Annual Premium 35 years Sum Assured 200000 Premium 10000

Premium Payment Age at Entry

under Basic plan Term Type of Fund 20 years Secured Fund

Death Benefit Payable at end of year of Death

Surrender / Maturity Value

End of Polic y Year

Total Premiu m Paid

Guarante ed

Variabl e

Variabl e

Total

Total

Variabl e

Variabl e

Scenar io 1 1. 2 10000 20000 20000 20000 7624 17560

Scenar io 2 7932 18569

Scenar io 1

Scenar io 2

Scenar io 1

Scenar io 2 0 0

207624 207932 0 217560 218569 0

PLAN WITH LIFE COVER

Frequency of Annual Premium 35 years Sum Assured 200000 Premium 10000

Premium Payment Age at Entry

under Basic plan Term Type of Fund 20 years Secured Fund

Death Benefit Payable at end of year of Death

Surrender / Maturity Value

End of Polic y Year

Total Premiu m Paid

Guarante ed

Variable

Variable

Total

Total

Variable

Variable

Scenari Scenari Scenari Scenari Scenari o1 1. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 100000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o2 o1 o2 o1

Scenari o2 0 0

100743 104557 100743 104557 0 102015 110022 102015 110022 0

106813 119569 106813 119569 106813 119569 111848 129965 111848 129965 111848 129965 117132 141287 117132 141287 117132 141287 122678 153617 122678 153617 122678 153617 128498 167045 128498 167045 128498 167045 134605 181669 134605 181669 134605 181669 141015 197595 141015 197595 141015 197595 147742 214940 147742 214940 147742 214940 154801 233829 154801 233829 154801 233829 162209 254400 162209 254400 162209 254400 169984 276803 169984 276803 169984 276803 178143 301201 178143 301201 178143 301201 186705 327771 186705 327771 186705 327771

16 17 18 19 20

100000 100000 100000 100000 100000

0 0 0 0 0

195691 356708 195691 356708 195691 356708 205121 388222 205121 388222 205121 388222 215018 422541 215018 422541 215018 422541 225404 459917 225404 459917 225404 459917 236303 500622 236303 500622 236303 500622

i.

This illustration is applicable to a non-smoker male/female standard (from medical, life style and occupation point of view) life.

ii.

The non-guaranteed benefits (1) and (2) in above illustration are calculated so that they are consistent with the Projected Investment Rate of Return assumption of 6% p.a.(Scenario 1) and 10% p.a. (Scenario 2) respectively. In other words, in preparing this benefit illustration, it is assumed that the Projected Investment Rate of Return that LICI will be able to earn throughout the term of the policy will be 6% p.a. or 10% p.a., as the case may be. The Projected Investment Rate of Return is not guaranteed

iii.

The main objective of the illustration is that the client is able to appreciate the features of the product and the flow of benefits in different circumstances with some level of quantification

SECTION 41 OF INSURANCE ACT 1938

i. No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer: provided that acceptance by an insurance agent of commission in connection with a policy of life insurance taken out by himself on his own life shall not be deemed to be acceptance of a rebate of premium within the meaning of this

sub-section if at the time of such acceotance the insurance agent satisfies the prescribed conditions establishing that he is a bona fide insurance agent employed by the insurer. ii. Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees.

SPECIAL PLANS

LIC's Special Plans are not plans but opportunities that knock on your door once in a lifetime. These plans are a perfect blend of insurance, investment and a lifetime of happiness.

Golden Jubilee Plan y y Bima Gold (closed for sale) New Bima Gold

Special Plan y y y Bima Nivesh 2005 Jeevan Saral Jeevan Madhur

SERVICE QUALITY
Your Policy Bond And Its Safety Your Policy Number Policy Conditions Alterations In Policy If Your Policy Is Lost Your Contact Address Keep Us Posted Without Fail Admission Of Age Nomination Assignment When To Pay The Premiums Grace Period For Premium Payment How And Where To Pay The Premiums Policy Status Where Available Revival Of Lapsed Policies Availing Loans On Policies Surrender Value Maturity, Survival Benefits, Disability And Death Claims Policies Under Salary Savings Scheme Helpline

WHY LIC OF INDIA

1. As a Govt of India owned Company, LIC is 51 + years old in the field of life insurance and money management. LIC's Life Fund size as on day is more than Rs 5 Lakh Thousand Crores ! 2. Any LIC policyholder or the nominee will vouch for the best claims settlement from LIC. Perhaps, this is the only institution where you as a policyholder are virtually chased till such time your claim cheques is handed over to you ! 3. LIC has won `NDTV Profit Leadership Award 2007 under Life Insurance Category', `Outlook Money Award 2007 as the best Life Insurer', `CNBC Awaaz Consumer Award 2007 as the best Life Insurance Company', `Golden Peacock Award for excellence in Corporate Governence 2007', `Web 18 Genius of the Web Award 2007 and many more'.

4. LIC adjudged No.1 Trusted Service Brand for the 4th successive year by ET Brand Equity Survey. 5. LIC has been adjudged Superbrand India for 2008-09 and Reader's Digest `Trusted Brand' Asia 2009.

6. This is the only corporation that is catering to more than 190 million satisfied policyholders in India and abroad.

7. This is one of the very few institutions that pays ex-gratia interest on pending maturity claims ! 8. More than 2050 LIC branches all over India are connected together to serve you. You can pay your premium anywhere in the country. 9. During its long existence, LIC has kept on updating its portfolio by bringing in new plans depending on public requirement. More than 50 of them are most popular and can be customized to meet any of your requirements. LIC ULIPs have become extremely popular due to the returns they offer. Money Pluslatest LIC Unit Linked Plan is a case in point. 10. All LIC Plans come with Sovereign Guarantee i.e., Govt of India Guarantee regarding repayment. Infact, as of now, only LIC plans enjoy

this Govt Guarantee. Beneficiary for this Sovereign Guarantee is you and you alone as the policyholder/ would-be policyholder. 11. All LIC plans are characterized by low premium, high life insurance coverage and a vast package of benefits offered by them. Add to this package, section 80C benefit and section 10(10D) benefit on the maturity proceeds, you will find investment on LIC plans one of the most coveted investment options available to you. 12. Premium paid under Key-Man Insurance plan is a recognized business expense under section 37(I) of the Income-Tax Act. For companies making profits, this is a very good incentive indeed. 13. Through Employer-Employee Insurance scheme, you can recognize the worth of your most valuable employees whose absence you can ill afford to loose. 14. Entire contribution to LIC Group Gratuity Scheme is a recognized business expense in the hands of the employer. In addition, through this scheme, the employer can transfer his gratuity liability to the corporation and fund the same under cash accumulation scheme. The most popular among all the companies. 15. LIC is declaring quite an impressive bonus (profits) on all its with-profits policies every year. Extra attraction under LIC Bonus is (a) it is calculated every year on the insured amount and not on the premium paid and (b) entire bonus received along with insured amount either by you on maturity of your policy(ies) or by your nominee in your absence during the currency of your policy(ies) is free from income-tax under section 10(10D) of the Income-tax Act. 16. On most of the LIC plans, you can borrow to take care of your immediate monetary requirements. None of the policy benefits get affected as a result of borrowal. Infact, policy loans offer one of the most attractive investment opportunities. 17. You can pay your premium 3 years in advance at 5% discount. Chief attractions of this advance payment of premium are (a) there is no possibility of your overlooking your premium payment and getting your policy(ies) lapsed wherever you are in the world and (b) you will be earning 5% tax-free interest on the unutilized portion of the amount left with LIC after apportioning the regular installment.

18. Most of the LIC plans come with Riders to take care of Total and Permanent Disablement due to Accident and some of the most dread diseases that may result in loss of income. 19. LIC pension plans that guarantee you life pension are extremely popular. You can park your hard earned money safely with the corporation and enjoy pension as long as you are alive. LIC is Indias most trusted brand, INSURING LIVES AND ENSURING SMILES from more than 50 Years. SUPER BRAND & MOST TRUSTED SERVICE BRAND OF INDIA. BEST IT USER IN INDIA (NASSCOM 2003). Largest Institutional Investor in India and Second largest in Asia among insurers. (Source: Asian Investor) LIC - An Institution Builder promoting many financial and insurance institutes like NSE, NCDEX, LIC Mutual Fund, Stock Holding Corporation of India, National Insurance Academy, Insurance Institute of India etc. LIC is the largest life insurer of India

Asset value as on 31.3.2009: 3,673,598.4 mn (INR). Offers over 45 plans to cover your life at various stages

Over 160 million customers and 1.1 million agents. It has underwritten more than 160 million policies. 2,048 branch offices (all computerized) of which 2019 are networked.

INTRODUCTION TO THE INSURANCE

Insurance is a social device where uncertain risks of individuals may be combined in a group and thus made more certain - small periodic contributions by the individuals provide a found out of which those who suffer losses may be reimbursed. In addition to being a means to protect oneself, the insurance Industry is an efficient conduit for the saving of people to be channeled towards economic growth. In India, the Insurance Industry? is more than 150 years old. Today, it is monopolized by two PSU's in their respective fields of life and General Insurance. However, with the successful passage IRDA Bill through both houses of parliament in December 1999 the sector has been opened up to private players. This will provided much. Needed impetus to the Industry and will improve the quality of service and products and will also increase employment opportunities. There are still some issues their need to be sorted out, particularly with regard to the status of intermediaries as envisaged by the Insurance Regulatory Authority

INSURANCE POLICIES : WHY ?

y y y y y y y Professional management High risk cover Low costs Transparency Choice of schemes Tax benefits regulation

The advantages of insurance policies are:

Professional Management

Insurance policies hire full-time, high-level investment professionals. Policies can afford to do so as they manage large pools of money. The managers have realtime access to crucial market information and are able to execute trades on the largest and most cost-effective scale.

High risk cover

Insurance policies invest in a broad range of risk covers. This covers risk of the effect of an uncertain event. A person can purchase policy against such unforeseen factors.

Low Costs

An insurance policy lets you participate in a diversified policies for as little as Rs.250/- (p.m.), and sometimes less. And with a no-load fund, you pay little sales charges to purchase them.

Transparency

You get regular information on the value of your investment in addition to disclosure on the specific policy.

Personal Service

One call puts you in touch with a specialist who can provide you with information you can use to make your own investment choices. They will provide you personal assistance in buying the suitable policy and provide information and answer questions about your policy status. Our Customer service centers are at your service and our Marketing team would be eager to hear your comments on our schemes.

INSURANCE POLICIES :WHAT IS IT ?

Insurance may be described as a social device to reduce or eliminate risks of loss to life and property. It is a provision which a prudent man makes against inevitable contingencies, loss or misfortune. Insurance is the modern method by which men make the uncertain, certain and unequal , equal. It is the means by which success is almost guaranteed. Through its operation, the strong contribute to the support of the week and week secure, not by favour sent by right duly purchased or made for, the support of the strong. Under the insurance policies, a large number of people associate themselves by sharing risks attached to individuals. As in private life, in business also there are dangers and risks of different kinds. The aim of all types of insurance is to make provision against such dangsea (marine insurance), death(life insurance) and accidents and burglary. Any risk contigent upon these, may be insured against at a premium a commensurate with the risk involved.

INSURANCE POLICIES : WHAT IT IS MADE OF ?

INSURED INSURER BENEFICIARY POLICY PREMIUM INSURED PREMIUM PERIL HAZARD EXPOSURE CHANCE OF LOSS

7 P s Of Insurance Sector
Product Promotions Pricing

Physical Evidence

Place

People

Process

Wherever there is uncertainty there is risk. We do not have any control over uncertainties which involves financial losses. The risks may be certain events like death, pension, retirement or uncertain events like theft, fire, accident, etc. Insurance is a financial service for collecting the savings of the public and providing them with risk coverage. The main function of Insurance is to provide protection against the possible chances of generating losses. It eliminates worries and miseries of losses by destruction of property and death. It also provides capital to the society as the funds accumulated were invested in productive heads. Insurance comes under the service sector and while marketing this service, due care is to be taken in quality product and customer satisfaction. While marketing the services, it is also pertinent that they think about the innovative promotional measures. It is not sufficient that you perform well but it is also important that you let others know about the quality of your positive contributions. The creativity in the promotional measures is the need of the hour. The advertisement, public relations, word of mouth communication needs due care and personal selling requires intensive care.

DIFFERENT TYPES OF INSURANCE POLICIES

WHOLE LIFE PLANS CHILDREN PLANS HEALTH PLANS UNIT LINKED PLANS ENDOWMENT POLICIES GROUP INSURANCE POLICIES

RESEARCH METHODOLOGY
Research: - is a process of collecting, analyzing, interpreting and summarizing in a significant manner for the purpose of framing out necessary conclusion and findings of data perceived and formulated for deriving out the meaningful information. To carry our research necessary telephonic calls needed to be done, suitable appointments were to be fixed and therefore market survey is to be followed.

Title of the Study

CUSTOMER ATTITUDE TOWARDS LIC PRODUCTS

Duration of the Project

45 Days 1st May, 2011 to 15th June, 2011

Objective of Study

The main aim of undertaking this study is to accomplish the following objective: y Conducting a market survey and understanding the customer perception. Analyzing the market survey and thereby finding out the investment pattern of the customer. Proper understanding and evaluation of LIC Analysis customer awareness about insurance policies. Proper understanding and analysis of the perspective investor about this financial product . The main motive of my job the training is to brand building of LIC of India and creating awareness & sales, that is its an brand building & sales orientated.

The objective of the LIC is to create awareness of the policies among the general public and to know the perception of the general public regarding the insurance policies and try to fulfill their requirement. Analyzing the market survey and thereby finding out the investment pattern of the customer.

To conduct the market research first of all it is necessary to create a research design. A research design is basically a blue print of how a research is to be conducted, it may include; 1. 2. 3. 4. Choosing the approach Determining the types of data needed. Locating the source of data. Choosing a method of data.

TYPE OF RESEARCH

Basically there are 3 types of approaches used during the any research: 1. 2. 3. Exploratory Descriptive Experimental.

During this research Descriptive and Exploratory approach is taken into consideration because of the availability of relevant information to describe the relationships between the marketing problem and the available information.

TYPES OF DATA USED: Both primary and secondary data is used in the research. Data Collection Methods To conduct the market research the data is collected by two sources. SECONDARY DATA Secondary data is one which already exists and is collected from the published sources. The sources from which secondary data was collected are: Newspapers and Magazines like Economic Times, Insurance Times, and Insurance Post. Internet

PRIMARY DATA The primary sources of data refer to the first hand information Primary data is collected during the survey with the help of Questionnaires.

SAMPLE SIZE
y Sampling unit: The customers will be stratified and segmented according to their age, income, cultural background, gender, education, etc. y Sampling size: A survey was conducted for two hundred respondents

Analyze the collected information: This involves converting raw material in to useful information. It involves tabulation of data and using statically measures on them for developing frequency distribution and calculating the averages and dispersions.

This phase will mark the culmination of the marketing research efforts. The report with the research finding is a formal written document. To achieve our target we adopted the following strategies: y y Our company divided us in two groups consisting of 2 members each. In a group we have gone to different places like govt.offices, Markets, Corporats, Trusts, NGOs . y We prepared a list of investors, contact them later for purchase of policy in our company. If we found any customer interested in our products we meet to the customer and give the details of the our product and collect the form and cheque or cash.

Scope of The Study

Pre-production marketing

Create awareness

Production

Induce Trial Word of mouth communication

Post-production marketing

Demonstrate Benefits

Consumption

Build Brand Preference

strong influence

weak influence

LIMITATIONS

Though the present study aimed to achieve the above-mentioned objectives in full earnest and accuracy, it was hampered due to certain limitations. Some of the limitations of this study may be summarized as follows : Getting accurate responses from the respondents due to their inherent problems was difficult. They were partial, and refused to cooperate. Very few people are interested in knowing about insurance policies. Locating the target respondents was very time consuming. Sample size was limited due to the limited period of 50 days allocated for the survey. The selection of respondents to cover the various strata of the society was tedious and time consuming. Time Consuming: Contacting each and every customer utilizes most of the y Lack of Knowledge: Very few people have knowledge about Policies which are newly launched. y Co-ordination: Poor feed back from the customers Lack of information from the customers due to time constraints time.

y y

Many competitors in the market.

FACT & FINDINGS

CURRENT STANDING OF PRIVATE LIFE INSURANCE COMPANIES IN URBAN SECTOR Life insurance is possibly the most- retail of all financial services, and is required by people of all segments and in all locations. At a broad level, ICICI Prudential aims to secure the families of the middle and upper class working people in urban India. To this end, they have pursued a pan-India distribution strategy and backed it up with a range of products that meets the needs of a wide range of people, be they from rural or urban areas. Today, they have branches in 74 locations and rural presence in more than 15 states. Certainly, the majority of the business still conies from urban areas such as metros and mini-metros. However, they have seen rural business grow significantly and expect it to continue making greater contribution in the years to come. GROWTH OF PRIVATE LIFE INSURANCE COMPANIES IN THE LAST 5 YEARS The insurance industry recorded a booming growth of 35% in premium income during 2008-09 with the 21 private sector players walking away with. An impressive 129% while the Life Insurance Corporation of India recorded a 21% growth. Thus the market share of state behemoths dropped to 78% in 2010- 11 from 87% a year ago. According to ASSOCHAM Eco Pulse (AEP) Study, the industry premium increased to Rs253.42bn in 2010-11 from Rsl87.1bn in 2009-10. The LIC total premium for the

year 2009-10 amounted to Rsl97.85bn as against the Rsl62.84bn during previous year. The figures for the first two months of the fiscal 2010-11 also speak of the growing share of the private insurers. The share of LIC for this period has further come down to 75%, while the private players have grabbed over 24% share. "With the huge potential the market has, the Government should, more seriously look into increasing the FDI cap in the sector" said Mahendra K. Sanghi, ASSOCHAM President. During April-June 2010, the largest private company ICICI Prudential has increased its share from 6.25% in 2010-11 to 7.68% in current fiscal.The opening up of the sector has given some of the most innovative products like thecustomized insurance policies and now the unit linked policies that have gained much of customer attention. The sector has huge potential and certain other new and innovative areas can also be looked into for enhancing market share and premium income, said Sanghi. MAX NEWYORK is next in the row with 2.91% market share which has increased from 1.92% last fiscal followed by TATA AIG which now shares 2% of the market from 1.18% last fiscal. Birla Sun life's share has dropped from 2.45% during FY'05 to 1.76% in first two months of FY'06. SBI life comes next with 1. 72% share and has infact dropped a few percent points from last year. Max New York life and Aviva Life Insurance have captured more than 1% share each from less than 1% share during FY'05, Others like ING, AMP Sanmar, Met Life and Sahara India have less than 1 % share.

The detail of the market share of life insurance companies is attached. The market share of the private players has doubled every year from 5.6% in 2006-07 to, 12% in 2007-08 and close to 22% in 2008-09.

ROLE OF FOREIGN COMPANIES IN INDIA Government has allowed 26% foreign equity participation in the insurance sector. This has its limitations. While most foreign insurers planning to start their services in India were not pleased by this condition, they reluctantly agreed that this was expected in an opening economy and this will not change their outlook for India. After all no insurance company can afford to ignore a market of Ibn people. But the fact remains that they: Can not appoint majority directors on the company board; Can not have say in the day to day workings of the company; Can Affect Only Special Resolutions.

This cap, however, will have a great impact on the Indian counter part to raise 74% of the funds in their joint venture. To add to this if Indian partners like State bank of India, with over 9000 branches nationwide, will demand premium for their existing distribution network, we will see the foreign insurance companies demand hefty premiums for bringing in their global expertise and brand. Mr. Vaidya, Chairman of SBI, has recently stated that all it is looking for is a good and reliable partner and the question of a hefty premium to be charged to its foreign partner is not significant. The monolith has finally come to business senses foreign companies are unhappy even about laws pertaining to repatriation of funds. The Stipulated investment criteria is also something that all players in the sector, be it Indian or foreign, are closing watching.

The foreign players are essentially looking to tap their" global expertise in the variety markets and use that know-how to work in the Indian scenario. Designing of products, information systems, technical expertise, manpower planning etc is what one expects.

ANALYSIS OF INTERPRETATION
ABOUT THE SURVEY
Knowing the awareness and perception of the customers is very important in any industry. This provides insight into the customer behavior and his expectation from the industry player. It examines some interesting choices of the retail investor including the reasons behind investing in unit linked plans and the risk tolerance levels of the investors. the investor knowledge about the ulips and what according to him are the best policies is also analyzed. This Jaipur city survey was conducted to know the retail investor awareness and perception about insyrance policies. It is hoped that this survey in Jaipur city would go a long way in benefiting for LIC of India.

The total sample for the study was 200 across Jaipur city.

I. AN OVERVIEW : This section shows an simple overview of respondents like their age ,gender, income profile, saving habits and qualification (a) Age-profile: Table No. showing age profile of respondents:
S. No 1. 2. 3. 4. 5. 6. 7. 8. 9. Age 20-25 25-30 30-35 35-40 40-45 45-50 50-55 55-60 60 Above Total No .of respondents 13 23 13 10 6 5 4 2 4 80 Percentage 16% 29% 16% 13% 8% 6% 5% 2% 5% 100%

1.

According to you, which have played a major role in the field of life-

insurance companies? Insurance LIC HDFC ICICI Others Pvt. Employees 10 5 3 2 Govt. Employees 13 3 3 1 Business Man 10 5 4 1

After analyzing this data it is found that from the given three respective level of Pvt. Govt. and Business 10 out of 20 (30%), 13 out of 20 (39%) and 10 out of 20 (30%) are in favour of LIC, while 5 out of 20 (15%), 3 out of 20 (9%) and 5 out of 20 (6%), 1 out of 20 (30%) and I out of 20 (30%) are in favour of other Pvt. Companies.

2.

Which insurance company has gained massive public support in the current

fiscal year?

Insurance

LIC
HDFC

ICICI
Others

Pvt. Employees 12 3 3 2

Govt. Employees 14 2 2 2

Business Man 10 5 4 1

From the above table, it is found that from the given three sector Private, Govt. and Business 12 out of 20 (36%), 14 out of 20 (42%), 10 out of 20 (30%), are in the favour of LIC 3 out of 20 (9%), 2 out of 20 (6%) and 4 out of 20 (12%) are in favour of ICICI, whereas only 2 out of 20 (6%), 2 out of 20 (6%) 1 and out of 20 (3%) favour others company.

3.

Do you think insurance policy is in the direction of public welfare?

Pvt. Sector

Govt. Sector

Business Man

Yes
No

13
7

16 4

12 8

The above table shows that from private sector 13 out of 20 (30%) agree and 7 out of 20 (21%) disagree, from govt. sector 16 out of 20 (48%) think it right but 4 out of 20 (12%) don't thick it so and from business man 12 out of 20 (36%) are in favour of the above statement but 8 out of 20 (24%) don't favour it.

4.

Is retirement bond or pension policy launched by the number of private

Yes
No

Pvt. Sector 15 5

Govt. Sector

18
2

Business Man 13 7

It is obvious from the above table that 15 out of 20 (45%), 18 out of 20 (54%) and 13 out of 20 (39%) from the given three think retirement bend or pension policy a legitimate step in the direction of secure old age but 5 out 20 (15%), 2 out of 20 (6%) and 7 out 20 (21%) don't agree with the opinion of the majority class.

5.

Do you think that risk coverage factor included in Insurance policy attracts general public towards the policy?

Yes

No

Pvt. Sector 12 8

Govt. Sector 16 4

Business Man 11 9

From the above table it is found that 12 out of 20 (36%) from Private sector 16 out of 20 (48%). From Govt. sector and 11 out of 20 (33%) thinks risk coverage factor attractive but rest 8 out of 20 (24%), 4 out of 20 (12%) and 9 out 20 (27%) from the above them sector don't think it so encouraging towards saving trend whereas 3 out of 20 (9%), 2 out of 20 (6%) and 4 out of 20 (12%) don't think it so.

6.

What according to you, the term plan that only covers risk and doesn't cover maturity benefit on survival at the end of the term provides security cover over policy holders or a smart way of accumulative money from policy holders?

Security Cover Accumulative Money

Pvt. Sector 11 9

Govt. Sector

15
5

Business Man 12 8

It is obvious from the above data that 11 out of 20 (33%), from the Pvt. Sector, 15 out of 20 (45%) from Govt. sector and 12 out of 20 (36%) think term plan as a security cover but 9 out of 20 (27%), 5 out of 20 (15%) and 8 out of 20 (24%) from the three respective group think it as a way of accumulating money insurance company.

7.

Do you think that the arrival of so many private companies in this field will provide Lots of choices to policy holder?

Pvt. Sector Yes No

Govt. Sector

Business Man

16
4

18
2

16 4

From analyzing the above data it is found that 16 out of 20 (48%) from Pvt. Sector, 18 out of 20 (54%) from Govt. sector and 16 out of 20 (48%) think that the arrival of private players envisage a lot of choice to policy holder. But 4 out of 20 (12%), 2 out of 20 (6%) and 4 out of 20 (12%) don't think it so.

8.

Do you agree that customer-centricity and transparency are the buzzwords for success in this evolving industry?

Pvt. Sector Yes No

18 2

Govt. Sector 20 -

Business Man

19 1

From the above data, it is found the 18 out of 20 (54%) from Pvt. Sector and 20 out of 20 (60%) from Govt. Sector 19 out of 20 (57%) from Business men agree with this statement whereas only 2 out of 20 (6%) from Pvt. Sector and 1 out of 20 (3%) from Business men do not agree with this statement.

SWOT ANALYSIS

CONCLUSION

After overhauling the all situation that boosted a number of Pvt. Companies associated with multinational in the Insurance Sector to give befitting competition to the established behemoth LIC in public sector, we come at the conclusion that: 1) There is very tough competition among the private insurance companies on the level of new trend of advertising to lull a major part of Customers. 2) 3) LIC is not left behind in the present race of advertisement. The entry of the Pvt. Players in the Insurance Sector has expanded the product segment to meet the different level of the requirement of the customers. It has brought about greater choice to the customers. 4) 5) Private insurers have restricted reach to the customers. LIC has vast market and very firm grip on its traditional customers and monopoly of life insurance products. 6) Bank assurance - that allows life insurers to leverage on the risk product through bank network, was adopted by private players. But LIC was also not left behind as picking up majority stake in the corporation Bank and large equity stake in the Oriental Bank of Commerce. 1RDA is also playing very comprehensive role by regulating norms mandating to private players in this sector, that increases the confidence level of the customers to the private players.

Recommendations & Suggestions

In the modernized well advanced hi-tech approach to the customer every possible facilities and effort to build up the confidence of the rising policy holders towards. Insurance companies, to complete one another nothing is left to recommend. But some recommendations that are intensely felt and highly required for insures to sustain in the market. These are as follows:

a) More and more transparency should be ascertained between insurers and policy holders. b) Particularly, in the emerging boom in the insurance company, every insurance company should be customer centered, and well versed in the handling of problem and grievances of the policy holders. c) Each and Every product launched by the Insurance company should be in favour of increasing need of policy holders. IRDA should be more and more responsible to the insurance sector by determining some standard. It should be mandatory to every insurers to make more and more responsible and responsive to the policy holders so that comprehensive understanding may be developed among policy holders. It may be beneficial on both sides.

APPENDIX Questionnaire
Age profile :

Gender

Income profile

Saving habits

Qualification

1.

According to you, which have played a major role in the field of life-insurance companies? o LIC o HDFC o ICICI o OTHERS

2.

Which insurance companies have been successful to make strong public base by advertisement?

o o o o
3.

LIC HDFC ICICI OTHERS

Which insurance company has gained massive public support in the current fiscal year?

o LIC

o HDFC o ICICI o OTHERS

4.

Do you think insurance policy is in the direction of public welfare?

o YES o NO

5.

Is retirement bond or pension policy launched by the number of private companies?

o YES o NO

6.

Do you think that risk coverage factor included in Insurance policy attracts general public towards the policy? o YES o NO

7.

What according to you, the term plan that only covers risk and doesn't cover maturity benefit on survival at the end of the term provides security cover over policy holders or a smart way of accumulative money from policy holders?

o SECURITY COVER o ACCUMULATIVE MONEY

8.

Do you agree that customer-centricity and transparency are the buzzwords for success in this evolving industry?

o YES o NO

BIBLOGRAPHY

Books:

Philip Kotler, Marketing management prentice Hall of India Pvt. Ltd. New Dehli. C. R. Kothari Research methodology, vishwa publication, New Delhi.

Saxena Rajan Marketing management Tata Mcgraw-hill publicating Co. Ltd. New Delhi.

H. V. Verma Marketing of services Global business press, New Delhi.

JOURANLS:
Business today magazine of February issue,2011.

Web Resources:

 www.licofindia.com  www.sebi.gov.in  www.rbi.org.in