A PROJECT REPORT

“A STUDY ON AWARENESS OF LIFE INSURANCE ”

AT
LIFE INSURANCE CORPORATION OF INDIA
PROJECT REPORT SUBMITTED FOR THE PARTIAL
FULFILLMENT OF THE REQUIREMENT FOR THE AWARD
OF
MASTER OF BUSINESS ADMINISTRATION

Submitted by:
PRIYANKA JADHAV
Hall Ticket No: 1420-19-672-052

Under the guidance of

MRS. MANJUSHA KULKARNI
(ASST.PROFESSOR)

VIVEK VARDHINI SCHOOL OF BUSINESS MANAGEMENT

(Affiliated to Osmania University)
JAMBAGH, KOTI
HYDERABAD
2019-2021

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 DECLARATION

I, hereby declare that, this project report entitled “AWARENESS OF

LIFE INSURANCE ” at “LIFE INSURANCE CORPORATION OF

INDIA ” has been prepared by me during the year 2019-21 under the

able guidance of MRS. MANJUSHA KULKARNI (Asst.Prof)

I also declare that this project is the result of my own efforts and it has

not been submitted to another University for the award of any Degree or

Diploma. The observations and conclusions written in this report are

based on the data collected by me.

PRIYANKA JADHAV
Roll No: (1420-19-672-
052 )

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3
 Vivek Vardhini Education Society’s
VIVEK VARDHINI
SCHOOL OF BUSINESS MANAGEMENT
(Approved by AICTE/Affiliated to Osmania University)
Jambagh, Hyderabad – 500 095.
Ph : 040-24601844/040-24617666

CERTIFICATION

This is to certify that the Project Report titled “AWARENESS OF LIFE

INSURANCE ” at LIFE INSURANCE CORPORATION OF INDIA
submitted in partial fulfillment for the award of M.B.A. Programme of
Department of Business Management, O.U., Hyderabad, was carried out by
PRIYANKA JADHAV Roll No. 1420-19-672-052 under my guidance.

This has not been submitted to any other University or Institution for the award
of any Degree/Diploma/Certificate.

SIGNATURE OF GUIDE PRINCIPAL

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 ACKNOWLEDGEMENT

This report has been prepared with the able guidance and kind co-operation of the
Principal/Director I/C Mrs. Sowmya V. Katyayini of “VIVEK VARDHINI SCHOOL
OF BUSINESS MANAGEMENT”.

I express my deep sense of gratitude and thanks to MRS. MANJUSHA KULKARNI

(Asst.Prof), of VIVEK VARDHINI SCHOOL OF BUSINESS MANAGEMENT
(Affiliated to Osmania University) for her co-operation and valuable guidance.

I have to express my special thanks to all Lecturers who has given valuable
suggestions in completing this Project Report.

I owe my sincere thanks to Mr. Mir Mustafa Ali Khan, B.Com, MRDT USA, of
“LIFE INSURANCE CORPORATION OF INDIA ” Hyderabad, who has assisted
me in completing this report.

PRIYANKA JADHAV
Roll No: 1420-19-672-052

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 ABSTRACT

The roots of insurance might be traced to Babylonia, where traders were encouraged
to assume the risks of the caravan trade through loans that were repaid (with interest)
only after the goods had arrived safely-a practice resembling bottomry and given legal
force in the Code of Hammurabi (c.2100 B.C.). The Phoenicians and the Greeks
applied a similar system to their seaborne commerce. The Romans used burial clubs
as a form of life insurance, providing funeral expenses for members and later
payments to the survivors. With the growth of towns and trade in Europe, the
medieval guilds undertook to protect their members from loss by fire and shipwreck,
to ransom them from captivity by pirates, and to provide decent burial and support in
sickness and poverty. By the middle of the 14th cent, as evidenced by the earliest
known insurance contract (Genoa, 1347), marine insurance was practically universal
among the maritime nations of Europe. In London, Lloyd’s Coffee House (1688) was
a place where merchants, ship owners, and underwriters met to transact business. By
the end of the 18th century. Lloyd’s had progressed into one of the first modern
insurance companies.

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 TABLE OF CONTENT

CHAPTER NO CONTENT PAGE NO

CHAPTER -1 INTRODUCTION 1-11

 NEED OF THE STUDY
 OBJECTIVE OF THE STUDY
 SCOPE OF THE STUDY
 RESEARCH METHODOLOGY
 LIMITATION OF THE STUDY

CHAPTER – 2 REVIEW OF LITERATURE 12-25

CHAPTER – 3 COMPANY PROFILE 26-35

CHAPTER – 4 DATA ANALYSIS AND 36-48

INTERPRETATIONS

CHAPTER – 5 FINDINGS , SUGGESTIONS & 49-52

CONCLUSIONS
BIBLIOGRAPHY 53-54

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 CHAPTER – I
INTRODUCTION

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 INTRODUCTION
Insurance ensures protection of economic value of assets. Assets are insured against
the risk of being destroyed or made non-functional due to any accidental occurrence.

Types of Insurance
There are two different branches of insurance-Life and Non-life Insurance. While Life
Insurance insures the life of a person.

Concept of Risk
Integral to the concept of insurance is the concept of risk. In insurance parlance, risk
is called peril. Only where risk prevails, is insurance applicable.

Risk is defined as the possibility of adverse results flowing from any occurrence.

Mechanism of insurance:-
The basic mechanism of insurance works with the same principle. Here, people
exposed to the same risks comes together and poor funds to protect each individual
against risk. Therefore, risk is spread out. The insurance companies collect money in
advance and create a fund from which losses are paid.

Business of Insurance
Insurance companies bring together people with common insurance interest (risks)
and collect contributions (premium) from them, to pay compensation to those who
suffer a loss.
Insurance works on the principle of transferring risk from an individual to a group.
Insurance is a risk transfer mechanism. The insurance company agrees to meet any
loss (as per the policy) for a certain amount of premium.

Insurance – As a Social Security Tool

1948, United Nations declaration “everyone has right to a standard of living adequate
for health and well being of family….”. The death of a person during productive years
is a great loss for the family and for the society/nations as well. Life assurance
reduces this cost and is complimentary to states’ efforts at social management.

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THE HISTORY OF INSURANCE
The roots of insurance might be traced to Babylonia, where traders were encouraged
to assume the risks of the caravan trade through loans that were repaid (with interest)
only after the goods had arrived safely-a practice resembling bottomry and given legal
force in the Code of Hammurabi (c.2100 B.C.). The Phoenicians and the Greeks
applied a similar system to their seaborne commerce. The Romans used burial clubs
as a form of life insurance, providing funeral expenses for members and later
payments to the survivors.

With the growth of towns and trade in Europe, the medieval guilds undertook to
protect their members from loss by fire and shipwreck, to ransom them from captivity
by pirates, and to provide decent burial and support in sickness and poverty. By the
middle of the 14th cent, as evidenced by the earliest known insurance contract (Genoa,
1347), marine insurance was practically universal among the maritime nations of
Europe.

In London, Lloyd’s Coffee House (1688) was a place where merchants, ship owners,
and underwriters met to transact business. By the end of the 18 th century. Lloyd’s had
progressed into one of the first modern insurance companies.

In 1693 the astronomer Edmond Halley constructed the first mortality table, based on
the statistical laws of mortality and compound interest, The table, corrected (1756) by
Joseph Dodson, made it possible to scale the premium rate to age; previously the rate
had been the same for all ages.

Insurance developed rapidly with the growth of British commerce in the 17 th and 18th
century. Prior to the formation of corporations devoted solely to the business of
writing insurance, policies were signed by a number of individuals, each of whom
wrote his name and the amount of risk he was assuming underneath the insurance
proposal, hence the term underwriter. The first stock companies to engage in
insurance were chartered in England in 1720, and in 1735, the first insurance

10
company in the American colonies was founded at Charleston, S.C. Fire insurance
corporations were formed in New York City (1787) and in Philadelphia (1794).

The Presbyterian Synod of Philadelphia sponsored (1759) the first life insurance
corporation in America, for the benefit of Presbyterian ministers and their dependents.
After 1840, with the decline of religious prejudice against the practice, life insurance
entered a boom period. In the 1830s the practice of classifying risks was begun.

The New York fire of 1835 called attention to the need for adequate reserves to meet
unexpectedly large losses; Massachusetts was the first state to require companies by
law (1837) to maintain such reserves. The great Chicago fire (1871) emphasized the
costly nature of fires in structurall+y dense modern cities.

Reinsurance, whereby losses are distributed among many companies, was devised to
meet such situations and is now common in other lines of insurance.

The Workmen’s Compensation Act of 1897 in Britain required employers to insure

their employees against industrial accidents. Public liability insurance, fostered by
legislation, made its appearance in the 1880s; it attained major importance with the
advent of the automobile.

In the 19th century, many friendly or benefit societies were founded to insure the life
and health of their members, and many fraternal orders were created to provide low-
cost, members-only insurance. Fraternal orders continue to provide insurance
coverage, as do most labor organizations. Many employers sponsor group insurance
policies for their employees; such policies generally include not only life insurance,
but sickness and accident benefits and old-age pensions, and the employees usually
contribute a certain percentage of the premium.

Since the late 19th century, there has been a growing tendency for the state to enter
the field of insurance, specially with respect to safeguarding workers against sickness
and disability, either temporary or permanent, destitute old age, and unemployment.

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The U.S. government has also experimented with various types of crop insurance, a
landmark in this field being the Federal Crop Insurance Act of 1938. In World War II
the government provided life insurance for members of the armed forces; since then it
has provided other forms of insurance such as pensions for veterans and for
government employees.

Introduction to the project:-

The main objective of the project is focused on “finding out the financial advisors
with respect to their personal details”. And awareness of “LIC’. And the analysis of
the chrematistics that are helpful for a person to become a good financial for any
insurance company.

This project has done to promote the brand name of LIC and to find out the interested
people for financial advisors. The main objective of the study is to find out the
existing market for the company and to cover all most all the people, which will be
helpful in increasing the companies’ operation activities and services towards the
customers. Most importantly it explains criteria for the recruitment of financial
advisors and the qualities that make good financial advisors.

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NEED OF THE STUDY

 An enquiry into the nature and factors responsible for performance of the LIC
of India and also the private sector insurance players during the period 2000-
01 to 2009-10 will be helpful in formulating the future course of action in the
area of product innovation and development, asset-liability management and
customer relationship management of the life insurance players in India.
 This will enable the Government, IRDA, LIC of India, private sector players,
employees, insurance marketers and the policyholders to know the causes
underlying the existing position, to understand and appreciate the other
stakeholders’ attitude and to promote compromising and conciliatory 75
behaviour which is the essential pre-requisite for the healthy growth of life
insurance industry in our country.
 It is hoped that this study will be useful in the context of the imperative need
for toning up the efficiency of the working of both the public and private
sector units, which are expected to play a crucial role in the years to come and
give a new outlook to the life insurance policy laid down by the Government
and the IRDA.
 Its aim is also to find out why certain deficiencies have occurred and how they
can be avoided. It requires naturally a lot of objective assessment of the
problems with the application of statistical techniques.
 It will also be useful to bring to light many aspects, with broader perspective,
of the performance evaluation of the life insurance industry that contribute for
higher insurance penetration and better customer service are brought to light.
It is also hoped that the data presented, the observations made and conclusions
arrived at in this study will be useful for inter-sectoral comparison, not only in
the case of other players who newly entered and those who are proposed to
enter in the years to come in the insurance sector. Therefore, a study of this
sort is undertaken in a more judicious manner.

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 The objectives of the project are as follows:

 To find out the awareness of LIC

 To find out the interested candidates to become financial advisor for the

LIC

 To find out the characteristics of the interested candidates from the

responds this will help to become financial advisor.

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SCOPE OF THE STUDY

Because of the time constraint the study is limited to Hyderabad and secunderabad.

The study is mainly concentrated on finding out the financial advisors for LIC; the

sample size of the study is two hundred.

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Research Methodology

Primary Data

Primary data may be obtained from individuals, from families’ representatives, or

form originations.

Questioning

This is done mainly by interviewing, but also data may be obtained through self
administered questionnaires distributed by mail and other ways. There are several
means by which questioning can be carried out, which will categorize as personal,
telephone, and E-mail.

Personal Questioning:

To conduct depth interviewing of the selected people at the appointed times

Population

A Population is an aggregation of the elements.

An element is that unit about which information is collected and which provides the
basis for analysis. Generally, in marketing research sampling, elements are people.

Period of the Study:-

The study was done during The Month of Dec & Jan 2015-2020.

Sources of Data

There are numerous possible sources of data and again we cannot list them in detail.
General clarification of sources, which we now offer in several dimensions.

Secondary Data

Secondary sources should be first considered, which refer to those for already
gathered and available data (in contrast with primary data). These sources may
include books or periodicals, published reports, data services, and computer data
bank.

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WHAT IS MARKETING RESEARCH?

The natural starting point is to define our subject, and so we quote the traditional
definition of the American Marketing Association. Marketing research is

The systematic gathering, recording, and analyzing of data about problems relating to
the marketing of goods and services.

The key word that distinguishes research from a haphazard gathering of observations
is systematic. The systematic conduct of research requires particularly these tow
qualities: (1) orderliness, in which the measurements are accurate and the cross
section is fair, and (2) impartiality in analysis and interpretation. Keep these two
criteria in mind.

The definition also indicates the scope of marketing research. We will modify that by
adding

 Planning
 Interpreting

Basic and Applied Research

Basic research is that intended to expand the body of knowledge in a field or to
provide knowledge for the use of others. Applied research is carried on for the solving
for a particular problem for guiding a specific decision and usually its results are
private.

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LIMITATIONS

While doing the project work we made good effort, but still we may suffer from
certain limitations like
 This survey was undertaken to find out the interested candidates, who
wants to become financial advisors for the LIC company.

 My sample size of this survey is restricted to 200 respondents only.

 The information, views & options given by the respondents may be biased
or half-truth.

 This study might have become outdated by the time it is presented to the
company for their kind considerations.

 This survey is limited to twin cities. i.e. Hyderabad and Secundrabad only

These are the limits that we have with our project

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 CHAPTER – 2
REVIEW OF LITERATURE

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Life Insurance

Life insurance is a branch of insurance in which compensation is made available to

designated survivors of a deceased person, or to a person on their own survival after a
fixed term of years, in return for payments, or premiums. Life assurance is based on
the mathematics of probability, which determines the level of premium to be paid, and
on compound interest, which determines the growth over time, through investment, of
the fund constituted by the intake of premiums. The two together ensure an adequate
fund to provide the compensation required.

Life insurance is insurance for the customers and their family’s peace of mind. Life
insurance is a policy that people buy from a lifer insurance company, which can be
the protection and financial stability after one’s death. It’s primary life insurance
company function is to help beneficiaries financially after the owner of the policy
dies.

It can also be a form of savings in the long run if you purchase a plan , which offers
option of contributing regularly. Also, a little known function of life insurance can be
tied in with a person’s pension plan. A person can make contribution to a pension that
is founded a by a life insurance company. These are considered private pension
arrangements.

Life insurance provides unique benefits. It is designed to help the family in case of
premature demise of the life assured and even in case the life assured lives for too
long.

A list of the benefits that life insurance provides are:

 Protection: against the risk for the family of the insured.
 Painless savings: complete focus of life insurance schemes is on
long term investment. The amount that the person pays every month
as premium is very less.
 Liquidity: normally life insurance schemes are accepted as
collaterals for providing loans

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  Tax Relief:

--- u/s 88 all premium paid is exempted from taxation(subject to

limits)
--- u/s 10(10D) all income received from life insurance is exempted
from tax
--- u/s 80CCC(I)—contribution to the extent of Rs.10,000 /- to a
pension fund like LIC’s jeevan suraksha is exempted from taxes.
Some of the life insurance plans which are designed to meet the life cycle needs of
individuals are:

Security to family at a very low cost, in Whole life insurance plan

the event of untimely death
Have a large sum assured at old age on Endowment plan
maturity of the plan.
Children’s education and marriage Specific plan are designed
High quality with survival benefits Money back policy

Legislative and Regulatory Matters

Several Acts have been constituted for the smooth operation of the Insurance Industry
in India. Some of them date back to 1872, as in the case of the Indian Contract Act (of
course with amendments), whereas others are as recent as 1999, as in case of the
IRDA Act.

Life Insurance Industry in India

Life insurance in its existing form came in India from United Kingdom (UK) with the
establishment of a British firm, Oriental Life Insurance Company in 1818 followed by
Bombay Life Assurance Company in 1823, the Madras Equitable Life Insurance
Society in 1829 and Oriental Life Assurance Company in 1874, Prior to 1871, Indian
lives were treated as sub-standard and charged an extra premium of 15% to 20%.
Bombay Mutual Life Assurance Society, and Indian insurer that came into existence
in 1871, was the first to cover Indian lives at normal rates.

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The Indian Life Assurance Companies Act, 1912 was the first statutory measure to
regulate life insurance business. Layer, in 1928 the Indian Insurance companies Act
was enacted, inter alia, to enable the government to collect statistical information
about life and non-life insurance business transacted in India by India and foreign
insurers, including the provident insurance societies.

In 1938, with a view to protecting the interest of the insuring public, earlier legislation
was consolidated and amended by Insurance Act, 1938 with comprehensive
provisions for detailed and effective control over the activities of insurers. In order to
administer the aforesaid legislation, an insurance wing was established and attached
first with the Ministry of commerce and then Ministry of Finance. This ministry was
administratively responsible fro policy matters pertaining to insurance. The actuarial
and operational matters relating to the insurance industry were looked after by an
attached office in Shimla, headed first by Actuary to 0the Government of India, then
by Superintendent of Insurance and finally by the Controller of Insurance. The act
was emended in 1950, making far-reaching changes such as requirement of equity
capital for companies, carrying on life insurance business, ceilings on shareholdings
in such companies, stricter control on investment of life insurance companies,
submission of periodical returns relating to investments and such other information to
the controller as he may call for, appointment of administrators for mismanaged
companies, ceilings on expenses of management and agency commission,
incorporation of the Insurance Association of India and formation of councils and
committees thereof.

By 1956, 154 Indian insurers, 16 non-Indian insurers and 75 provident societies were
carrying on life insurance business in India. Life insurance business was confined
mainly to cities and the better-of segments of the society.

On 19th January 1956, the management of life insurance business of 245 Indian and
foreign insurance and provident societies, then operating in India, was taken over by
the Central government and then nationalized on 1st September 1956. LIC was formed
in September, 1956 by an Act Parliament, viz. LIC Act, 1956, with capital
contribution of Rs.5crores from the Government of India.

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Some of the Salient Acts which needs to be understood are:
- Insurance act, 1938
- Life Insurance Corporation Act, 1956
- Insurance Regulatory and Development Authority Act, 1999
- Consumer Protection Act, 1986
- Ombudsman
- Income Tax Act
- Married Women’s Property Act
- Contact Act

Insurance Regulatory and Development Authority Act, 1999

An Act to provide for the establishment of an Authority to protect the interest of
holders of insurance policies, to regulate, promote and ensure orderly growth of the
insurance industry and for matters connected therewith or incidental thereto and
further to amend the Insurance Act, 1938, the Life Insurance corporation Act, 1956
and the General Insurance Business (Nationalization) Act, 1972

 The Authority replaces the Controller under Insurance Act, 1938. It states that,
if “Authority” is superceded by the Central Government, the “controller of
Insurance” may be appointed till such time as “Authority” is reconstituted
 Section 2(f) defines an intermediary to include insurance brokers, re-insurance
brokers, insurance consultants, surveyors and loss assessors
 The authority has the power and function to specify qualifications, code of
conduct and practical training for intermediaries and agents

Income Tax Act

An Act to consolidate and amend the law relating to income tax and super tax.

 Sub section 10D of section 10 of Income Tax Act 1961, any sum received
under a life insurance is exempted from Income Tax
 Exception: Not applicable if the amount is to be refunded under the Jeevan
Adhaar Plan in case the handicapped dependent predeceases the individual or
under a key-man insurance

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Fundamentals of Agency Law
Who is an insurance agent? Can an agent be an employee of an insurance company?
Who is the responsible authority for issuing licenses to insurance agents? What role is
the agent supposed to perform? For answering these questions let us get a deeper
understanding of the rules and regulations enacted by the Insurance Regulatory and
Development Authority (IRDA).

Insurance Agent
An insurance agent is an agent licensed under Section 42 of the Insurance Act, 1938.

He receives payment by way of commission or other remuneration for procuring

insurance business. He is also responsible for business relating to the continuance,
renewal or revival of policies of insurance.

The agent cannot be an employee of an insurance company and the Insurance Act,
IRDA Act and the Indian Contract Act govern his role as an agent.

Types of Agents

 Individual

 Absorbed Agent is an insurance agent licensed on or before the date of

notification of the Insurance agents Regulations, 2000, under the
provisions of section 42 of the Insurance Act, 1938.

 Composite Insurance Agent means an insurance agent who holds both life
insurance agency license and general insurance agency license

 Corporate Agent could be a company or a firm.

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 Every director or person holding charge of the office of the Corporate Agent
shall possess a valid license to act as an insurance agent or a composite insurance
agent. Employees of the office of the Corporate Agent shall possess valid licenses to
act as insurance agents or composite insurance agents provided such employees are
involved in soliciting or procuring insurance business.

As such, a corporate agent can solicit or procure insurance business thorough its
employees who hold valid licenses. The insurer shall pay the commission due to the
corporate agents.

Procedure for becoming an agent

Step – I
An application to be made to “designated person”. The “designated person” is
appointed by the insurer sponsoring the application.
- Form IRDA – Agents – VA, if the applicant is an individual;
- Form IRDA – Agents – VC, if the applicant is a firm or a company;
Two separate applications to be made, if a person desires to work as composite agent

Step – II
Deposit Fee
First Time – The fees payable by the applicant to the Authority for becoming an
insurance agent or composite agent would be Rs. 250.00
Renewal Fees – The fees payable by the applicant to the Authority for Renewal of
license would be Rs. 250.00. This is applicable only if the application for renewal is
made at least thirty days before the expiry of license. If the application is submitted
in less than 30 days before the expiry of license, a penalty of Rs. 100.00 is levied.

Step – III
The designated person may, on receipt of the application along with the evidence of
payment of fees to the Authority, an on being satisfied that the applicant,
 Possesses the minimum qualifications

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  Possesses practical training
 Has passed the examination
 Has furnished the application complete in all respects
 Has the requisite knowledge to solicit and procure insurance business; and
 Is capable of providing the necessary service to the policyholders; grant or
renew, as the case may be, a license.

Step – IV
 Identity card from one life insurer and such identity card from one general
insurer shall be provided to the applicant seeking license to act as a composite
insurance agent.
 In the case of a firm or a company, all of its partners or directors, as the case
may be, shall fulfill the requirements of educational qualifications, practical
training and pre-recruitment examination.
 License issued in accordance with this regulation shall entitle the applicant to
act as insurance agent fro one life insurer or one general insurer or both, as
the case may be
 If the designated person refuses to grant or renew a license under this
regulation, he shall give the reasons therefore to the applicant.

Code of conduct for insurance agents :

Every person licensed to act as an insurance agent shall be subject to a code of

conduct specified below.

(1) Every agent shall:

a. Identify himself and the Insurance company of which he is an insurance agent,
disclosing his certificates of license to the prospect on demand for the purpose
of soliciting or procuring insurance business;
b. Disseminate the requisite information in respect of insurance product offered
for sale by his insurer, and also by other insurer in the market, taking into
account the needs of the prospect for insurance before offering any insurance
product;

26
 c. Disclose the commission offered to him in respect of the insurance product
offered for sale;
d. Determine the premium to be charged by the insurer for the insurance product
offered for sale;
e. Explain to the prospect in regard to information required in the proposal form
by the insurer, and also the importance of disclosure of material information to
the insurer;
f. Inform the prospect regarding the acceptance of the proposal by the insurer
promptly;
g. Handover a copy of the proposal form or any other form to the proponent
before submitting such form to the insurer for purchase of insurance contract;
h. Abide by any matter that has been notified by the authority in its notification;

(2) Every agent shall not:

a. Solicit or procure insurance business without holding a certificate of valid

license.
b. Advice or induce the prospect to omit to disclose the material information in
the proposal form;
c. Submit wrong information in the proposal form or in the documents submitted
to the insurer for acceptance of the proposal;
d. Utilize his handwriting in respect of answers to the questions in the proposal
form which contains the signature of eh prospect: provided that if the prospect
is an illiterate, the handwriting in the proposal form shall be from another
person who is not an insurance agent, and such proposal shall be
countersigned by him (the insurance agent) as a witness.
e. Utilize his handwriting in respect of answers to the questions in the medical
reports;
f. Behave in discourteous manner with the prospect;
g. Interfere with any proposal introduced by any other insurance agent;
h. Offer better terms and conditions than offered by his insurer;
i. Part to or share his agency commission with any prospect or with any other
person;

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 j. Receive an share of the benefit payment payable to the policyholder or the
claimant or the beneficiary;
k. Give advice to any policy holder for termination of the insurance contract with
any insurer in order to effect a new proposal within one hundred eighty days
from date of such termination;

Functions of the Agent

The primary function of the agent is to procure business for the insurance company.
Prior to offering the policy, the agent has to check out on the insurability of the
proposer based on the principles of insurable interest and utmost good faith. The
relevant information can be:
a) Paying capacity
b) Health and habits
c) Age
Once the insurance contract has been put into force, the agent is supposed to ensure
continuance of policy through regular payment of renewal premiums.

In case of a claim the agent should help the insured or his family in proper settlement
of claims.

Agents Qualifications

In order to discharge the above duties, to the satisfaction of the consumer, it is

required that a person making an application for a license to act as an insurance agent
or as a composite insurance agent,
a. is at least 18 years of age as on the date of application;
b. has not been found to be a person of unsound mind by a Court of competent
jurisdiction;
c. Has not been found guilty of any kind of criminal conduct. In case of an
offence at least five years should have elapsed since the completion of sentence
imposed.
d. Possesses the minimum educational qualification of a pass in 12 th Standard or
equivalent examination conducted by any recognized Board/Institute of Education .
e. possesses a Certificate in Insurance Salesmanship issued by an Examination
Body or any other Institution by the Authority (IRDA) in this behalf;

Agents Regulations

Agent’s regulations deal primarily with the following features:

Appointment of Agents

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An insurer or the designated person acting on behalf of the insurer may appoint a
person as an insurance agent. Provided that such agent holds a valid license at the
time of appointment.

Qualification of Insurance Agents (dealt with in previous page)

Training of Insurance Agents

Every person appointed as a insurance agent after the appointed day by an

insurer shall undergo training organized by an independent institute or by an insurer’s
institution to be accredited by the Authority for a minimum period of four weeks
before appearing for the Certificate in Insurance Salesmanship Examination pass in
the pre-recruitment examination conducted by the Insurance Institute of India,
Mumbai or any other approved examination body.

Every person, before renewal of his license to act as an insurance agent, shall
undergo training organized by an independent institute or by an insurer’s institutions,
accredited by the authority, for a minimum period of four weeks once in every three
years. Where a person is a composite insurance agent, such training will be for a
period of six weeks.

Code of conduct for insurance agents

Every person licensed to act as an insurance agent shall be subject to a code of

conduct specified below.

(1) Every agent shall:

i. Identify himself and the Insurance company of which he is an insurance agent,
disclosing his certificates of license to the prospect on demand for the purpose of
soliciting or procuring insurance business;
j. Disseminate the requisite information in respect of insurance product offered
for sale by his insurer, and also by other insurer in the market, taking into account the
needs of the prospect for insurance before offering any insurance product;
k. Disclose the commission offered to him in respect of the insurance product
offered for sale;

29
l. Determine the premium to be charged by the insurer for the insurance product
offered for sale;
m. Explain to the prospect in regard to information required in the proposal form
by the insurer, and also the importance of disclosure of material information to the
insurer;
n. Inform the prospect regarding the acceptance of the proposal by the insurer
promptly;
o. Handover a copy of the proposal form or any other form to the proponent
before submitting such form to the insurer for purchase of insurance contract;
p. Abide by any matter that has been notified by the authority in its notification;

(2) Every agent shall not:

l. Solicit or procure insurance business without holding a certificate of valid

license.
m. Advice or induce the prospect to omit to disclose the material information in
the proposal form;
n. Submit wrong information in the proposal form or in the documents submitted
to the insurer for acceptance of the proposal;
o. Utilize his handwriting in respect of answers to the questions in the proposal
form which contains the signature of eh prospect: provided that if the prospect is an
illiterate, the handwriting in the proposal form shall be from another person who is
not an insurance agent, and such proposal shall be countersigned by him (the
insurance agent) as a witness.
p. Utilize his handwriting in respect of answers to the questions in the medical
reports;
q. Behave in discourteous manner with the prospect;
r. Interfere with any proposal introduced by any other insurance agent;
s. Offer better terms and conditions than offered by his insurer;
t. Part to or share his agency commission with any prospect or with any other
person;
u. Receive an share of the benefit payment payable to the policyholder or the
claimant or the beneficiary;

30
v. Give advice to any policy holder for termination of the insurance contract with
any insurer in order to effect a new proposal within one hundred eighty days from
date of such termination;

Limitation on Commission to Insurance agents

Every insurance agent and every insurer shall be subject to the provisions of the
Act, in regard to payment of commission or remuneration to the insurance agent.

Prohibition on cessation of payments of commission

Every insurance agent and every insurer shall be subject to the provisions of
the section 44 of the Act, in regard to cessation of payments of commission to the
insurance agent.

Termination of Agency
The license of any insurance agent including an absorbed agent may be
terminated by the Authority, if such agent suffers, at any time during the currency
of the license, from any of the said disqualification mentioned in sub-section (4)
of section 42 of the Act, as the case may be

Issue of duplicate license

An insurance agent shall make an application to the issuing authority through
the designated person for issue of a duplicate license with a fee of rupees fifty.

Returns to be submitted to the Authority

Every insurer shall, annually or at such shorter periods as may be prescribed
by the Authority, submit a statement to the Authority, showing the particulars
mentioned in section 43 of the Act.

Remuneration to Agents

31
 The only way in which the company remunerates the agent is though commissions
received on sales made. Commission to agents is specified as a percentage of the
premium paid. Agents are entitled to term insurance and gratuity benefits. An agent
will be eligible for gratuity if he has worked continuously for fifteen years or more
without agency termination. IRDA has given the upper limit of remuneration to
agents as 40% of premium.

Some companies offer reimbursement of telephone charges and other office

administration expenses to the agents.

32
 CHAPTER – 3
COMPANY PROFILE

LIFE INSURANCE CORPORATION

33
The story of insurance is probably as old as the story of mankind. The
same instinct that prompts modern businessmen today to secure
themselves against loss and disaster existed in primitive men also. They
too sought to avert the evil consequences of fire and flood and loss of life
and were willing to make some sort of sacrifice in order to achieve
security. Though the concept of insurance is largely a development of the
recent past, particularly after the industrial era – past few centuries – yet
its beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year
1818. Oriental Life Insurance Company started by Europeans in Calcutta
was the first life insurance company on Indian Soil. All the insurance
companies established during that period were brought up with the
purpose of looking after the needs of European community and Indian
natives were not being insured by these companies. However, later with
the efforts of eminent people like Babu Muttylal Seal, the foreign life
insurance companies started insuring Indian lives. But Indian lives were
being treated as sub-standard lives and heavy extra premiums were being
charged on them. Bombay Mutual Life Assurance Society heralded the
birth of first Indian life insurance company in the year 1870, and covered
Indian lives at normal rates. Starting as Indian enterprise with highly
patriotic motives, insurance companies came into existence to carry the
message of insurance and social security through insurance to various
sectors of society. Bharat Insurance Company (1896) was also one of
such companies inspired by nationalism. The Swadeshi movement of
1905-1907 gave rise to more insurance companies. The United India in
Madras, National Indian and National Insurance in Calcutta and the Co-
operative Assurance at Lahore were established in 1906. In 1907,
Hindustan Co-operative Insurance Company took its birth in one of the

34
rooms of the Jorasanko, house of the great poet Rabindranath Tagore, in
Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life
(later Bombay Life) were some of the companies established during the
same period. Prior to 1912 India had no legislation to regulate insurance
business. In the year 1912, the Life Insurance Companies Act, and the
Provident Fund Act were passed. The Life Insurance Companies Act,
1912 made it necessary that the premium rate tables and periodical
valuations of companies should be certified by an actuary. But the Act
discriminated between foreign and Indian companies on many accounts,
putting the Indian companies at a disadvantage.

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

35
19th of June 1956, and the Life Insurance Corporation of India was
created on 1st September, 1956, with the objective of spreading life
insurance much more widely and in particular to the rural areas with a
view to reach all insurable persons in the country, providing them
adequate financial cover at a reasonable cost.

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

Today LIC functions with 2048 fully computerized branch offices, 109
divisional offices, 8 zonal offices, 992 satallite offices and the Corporate
office. LIC’s Wide Area Network covers 109 divisional offices and

36
connects all the branches through a Metro Area Network. LIC has tied up
with some Banks and Service providers to offer on-line premium
collection facility in selected cities. LIC’s ECS and ATM premium
payment facility is an addition to customer convenience. Apart from on-
line Kiosks and IVRS, Info Centres have been commissioned at Mumbai,
Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune
and many other cities. With a vision of providing easy access to its
policyholders, LIC has launched its SATELLITE SAMPARK offices.
The satellite offices are smaller, leaner and closer to the customer. The
digitalized records of the satellite offices will facilitate anywhere
servicing and many other conveniences in the future.
LIC continues to be the dominant life insurer even in the liberalized
scenario of Indian insurance and is moving fast on a new growth
trajectory surpassing its own past records. LIC has issued over one crore
policies during the current year. It has crossed the milestone of issuing
1,01,32,955 new policies by 15th Oct, 2005, posting a healthy growth rate
of 16.67% over the corresponding period of the previous year. From then
to now, LIC has crossed many milestones and has set unprecedented
performance records in various aspects of life insurance business. The
same motives which inspired our forefathers to bring insurance into
existence in this country inspire us at LIC to take this message of
protection to light the lamps of security in as many homes as possible and
to help the people in providing security to their families.

SOME OF THE IMPORTANT MILESTONES IN THE LIFE

INSURANCE BUSINESS IN INDIA

37
1818: Oriental Life Insurance Company, the first life insurance company
on Indian soil started functioning.
1870: Bombay Mutual Life Assurance Society, the first Indian life
insurance company started its business.
1912: The Indian Life Assurance Companies Act enacted as the first
statute to regulate the life insurance business.
1928: The Indian Insurance Companies Act enacted to enable the
government to collect statistical information about both life and non-life
insurance businesses.
1938: Earlier legislation consolidated and amended to by the Insurance
Act with the objective of protecting the interests of the insuring public.
1956: 245 Indian and foreign insurers and provident societies are taken
over by the central government and nationalised. LIC formed by an Act
of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5
crore from the Government of India.
The General insurance business in India, on the other hand, can trace its
roots to the Triton Insurance Company Ltd., the first general insurance
company established in the year 1850 in Calcutta by the British.
Some of the important milestones in the general insurance business in
India are:
1907: The Indian Mercantile Insurance Ltd. set up, the first company to
transact all classes of general insurance business.
1957: General Insurance Council, a wing of the Insurance Association of
India, frames a code of conduct for ensuring fair conduct and sound
business practices.
1968: The Insurance Act amended to regulate investments and set
minimum solvency margins and the Tariff Advisory Committee set up.

38
1972: The General Insurance Business (Nationalisation) Act, 1972
nationalised the
general insurance business in India with effect from 1st January 1973.
107 insurers amalgamated and grouped into four companies viz. the
National
Insurance Company Ltd., the New India Assurance Company Ltd., the
Oriental Insurance Company Ltd. and the United India Insurance
Company
Ltd. GIC incorporated as a company.

OBJECTIVE OF LIC
 Spread Life Insurance widely and in particular to the rural areas
and to the socially and economically backward classes with a view
to reaching all insurable persons in the country and providing them
adequate financial cover against death at a reasonable cost.
 Maximize mobilization of people's savings by making insurance-
linked savings adequately attractive.
 Bear in mind, in the investment of funds, the primary obligation to
its policyholders, whose money it holds in trust, without losing
sight of the interest of the community as a whole; the funds to be
deployed to the best advantage of the investors as well as the
community as a whole, keeping in view national priorities and
obligations of attractive return.
 Conduct business with utmost economy and with the full
realization that the moneys belong to the policyholders.
 Act as trustees of the insured public in their individual and
collective capacities.
 Meet the various life insurance needs of the community that would
arise in the changing social and economic environment.

39
  Involve all people working in the Corporation to the best of their
capability in furthering the interests of the insured public by
providing efficient service with courtesy.
 Promote amongst all agents and employees of the Corporation a
sense of participation, pride and job satisfaction through discharge
of their duties with dedication towards achievement of Corporate
Objective.

Mission

"Explore and enhance the quality of life of people through financial

security by providing products and services of aspired attributes with
competitive returns, and by rendering resources for economic
development."

Vision

"A trans-nationally competitive financial conglomerate of significance to

societies and Pride of India."
 

40
 Determine or define the
Step 1 problem or opportunity
that is faced

Specify what
Step 2 information is needed

Identify the sources of

Step 3 the information

Decide on the
Step 4 technique for acquiring
the information

Gather and process the

Step 5 information

Step 6 Analyze and interpret

the meaning

Step 7 Present the finding to

the decision maker

Figure: the Seven Major Steps in a Research Project

41
 Sequence of steps in solving a problem

Setting objectives

Discover problem and

Step 2 define

Analyze problem
Step 3 environment

Search and select

Step 4 alternatives

Decide on action to
Step 5 take

Step 6 Implement

The methodology used for this study is questionnaire. There are two ways for
collecting the data.

42
 CHAPTER - 4
DATA ANALYSIS AND
INTERPRETATION

From the primary data so far which we have collected from questionnaires, we
came to know that the awareness of LIC life insurance is of 78% and rest of the
43
people i.e. 22% are to be covered. Till now the LIC life insurance company has
covered only 78% of the total population in the metropolitan cities. As a program to
cover the rest 22% of population, this survey has been conducted.

The objective of this survey is to find out the awareness for LIC Company and
to find out the interested candidates, who wanted to become as financial advisors of
the company and the analysis of the characteristics of them. For conducting this
survey, a sample of 200 members is selected randomly from twin-cities and it is
completely unbiased.

This survey has been completed with the help of questionnaire, which will
provide information the awareness. . Here we found out of two hundred, 156 people
know about “LIC COMPANY”, And rest of the 44 people don’t know. And it will
also provide the information about the characteristics of the interested candidates,
who wants to become as financial holder of the company. It will also provide the
information such as gender, age, occupation, financial status and his/her employment
status.

Awareness of
Yes No
insurance
Percentage of
78% 22%
the respondents

Awareness of LIC life

insurance

78%
Yes
No
22%

44
 From the above graph, we may interpret the data as follows. The total number
of persons surveyed is 200. From the graph we can come to know about the people
who were surveyed and about the area in which they fall under. In terms of the
awareness, 156 candidates fall under the category of ‘aware’, that is 78% of the total
surveyed people come under this category. This the major part of the pie graph, by
that we can come to know that most of the people are aware of the insurance.

Channel:- For any company advertising is an important thing, that means we have
to promote any brand name or any company through advertising only, so only we can
penetrate into the market through media whatever it may be for example they are
friends, relatives, agents, telemarketers, T.V.Ads, Paper Ads, Hoardings, Internet ,
and Others.

Channels Frie Relative Age Telemar T.V.Ads Paper Hoarding Internet Others
nds s nts keters Ads s
n.o.of 36 14 21 06 81 56 31 16 11
respondents

Awareness through different channels

100 81
80 56
60 36 31
40 14 21 16 11 n.o.of respondents
6
20
0

From The above graph we can say that the awareness of LIC through different
channels. That is the awareness through T.V.Ads is 81is the highest. And the second
highest is through PAPER Ads that is 56. Here the lowest awareness is 6 which are
from telemarketing. And the other channels are as follows in the descending order.
That is from FRIENDS it is 36, from HOARDINGS it is31, from AGENTS it is 21,

45
from INTERNET it is 16, from RELATIVES it is 14, and from OTHERS it is 11. So
from the above table we can find that the maximum number of people has aware of
ICICILIC through T.V Ads.

Rating:-
Rating the awareness of LIC life insurance company is one more important
issue while evaluating the awareness that identifies how far we achieved the
penetration of the market . We scaled it on the scale having the options like
“Unaware”, “Low”, “Medium”, and “High”. Here out of two hundred respondents
we found that 44 people are not aware of ICICI-PRU LIFE INSURANCE, 24 people
have rated low, 49 people have rated as medium and finally 73 people have rated
high.

Unawar
e low medium High
n.o of
respondent
s 22% 12% 24.5% 36.5%

46
 Awareness rating

100 77
80 44 55
60 Series1
40 24
20
0
re lo
w m gh
wa iu hi
a ed
Un m

From the above table and graph, we may interpret the data as follows. The total
number of persons surveyed is 200. From the table and graph we can come to know
about the candidates who were surveyed and about the area in which they fell under.
Here we can find the rating of ICICILIC is very high. Here 36.5% or 77 candidates
fall under the category ‘high”.

And the next major part belongs to “medium’. It indicates that 55 or24.5% of
the total candidates are aware of the company. But in terms of awareness, it is very
low. That means they may be aware of the company name, the products by the
company and about life insurance.

22% of the total candidates are not aware of the company. That is 44
members belong to “unawareness “group. It indicates that these people do not know
any thing about ICICI-PRU LIFE INSURANCE.

The last one is low that is 12% or 24 candidates who knows about
ICICILIC COMPANY is very low.

Marketing Experience:-

To work as a financial advisor one requires a vast knowledge of marketing and

handling the situations. So, in the section we enquired the person whether is he having

47
any previous marketing experience. In our survey we found that out of two hundred
74 respondents are having a good marketing experience and remaining 136
respondents are not well at marketing experience.

Marketing Yes No
experience
Percentage of 37% 63%
the responds

Marketing experience

63%

Yes
No

37%

From the above graph, we may interpret the data as follows. The total number of
persons surveyed is 200. From the table we can come to know about the candidates
who were surveyed and about the area in which they fell under. In terms of the
marketing experience, 37% of the candidates are having the experience. And 63% of
the candidates are not having the experience.

Preferred to work as:-

Generally life insurance employees are in two types ,they are full timers those
who works on the basis of regular monthly salary and another type is commission
based employees ,those who gets money according to their work. Here I found that

48
the candidates who were interested to work as a full-time worker is 26 and the
remaining 36 of the people are part-timers in life insurance companies.

Preferred to work as Full time Part time

Percentage of the responds 42% 58%

PREFERRED TO WORK AS

58%
Full time
Part time
42%

From the above graph we can find that the preference of the candidates to work as a
full time employee, or part time in life insurance companies. Here we found that most
of the people are interested to work as part time. That is 58% of the candidates are
interested to work as part time. And rest of the 42% of the candidates is interested to
work as full time employees.

FINDING OUT THE FINANCIAL ADVISORS:

Finding out the interested candidates to become financial advisors is the main
objective of this project, so, here we analyzed the data according to the personal
details like age, gender, marital status, occupation wise and income status wise. With

49
this personal details we concluded the objective with respective to the interested
candidates or not, and this is also a useful result and it will make easier the work of
the unit managers that who have to find out the financial advisors to make their
business fruitful.

From the primary data that which we were collected is analyzed based on those details
they are as follows.

Total interested candidates:- The main objective of this project is to finding

out the financial advisors and here we analyzed them based on the question “ whether
they are interested or not” and the out put is as follows, that is out of two hundred
candidates 62 candidates are interested and rest of the 138 candidates aren’t
interested.

Response of the candidates Yes No

Percentage of respondents 31% 69%

Interested candidates

69%

Yes
No

31%

Above graph suggests that the interested persons those who wants to work as financial
advisors are 31% and remaining 69% are not interested.

Finding based on gender wise:-

The interested candidates who becomes to financial advisors is analyzed based
on their gender, and those details are as follows that is interested male candidates are
44, and female are 18.

Gender Male Female

50
Percentage of the 71% 29%
respondents

N.o. of the respondents

71%
Male
Female
29%

From the above graph we found that 71% were male candidates and remaining 29%
female candidates were interested to work as financial advisors in LIC Life insurance
Ltd.

Analysis based on age-wise:-

Age:-
Age which acts very important characteristic factor for anyone who wants to
contribute his/her services. The present analysis based upon the ages of the surveyed
candidates. it will facilitates the organization to know about the age group of
interested persons and focus on that particular age group which is contributing more
and good service oriented financial advisors.

The below table provides the information about the age groups of the total interested
candidates.

Age <25 years 26-35 years 36-45 years 46-55 years >55
years
N.o. of interested 17 21 14 08 02
candidates

51
 Age-wise analysis

25 21
20 17
14
15 n.o of
8
10 respondents
5 2
0
<25 26- 36- 46- >55
35 45 55

The above graph shows the ratio among the candidates of different age
group who are interested to become as financial advisors for the ICICILIC
COMPANY. The total candidates who were surveyed are 200, out of that 62 persons
are interested to become as financial advisors. In that if we take as age wise 17
candidates are below 25 years age, 21 candidates are between 26-35 years, 14
candidates are between 36-45years, 8 candidates are between 46-55years and 2
candidates are more than 55years. Here we found that maximum people are interested
to work as financial advisors is between 26-35 years of age group.

52
Analysis based on marital status:-
The interested candidates who becomes to financial advisors is analyzed based
on their marital status , and those details are as follows. Here the interested candidates
who were married 48, and who were not married 14.

Marital status Single Married

Percentage of the 23% 77%
respondents

Based on marital status

77%
Single
Married
23%

I found that the candidates who were interested to work as a financial advisor is based
on their marital status are 77% who were married and 23% were single.

53
Occupational-wise:-
The interested candidates who wants to become as a financial advisors is
analyzed based on their occupation, and those details are as follows.

Occupation Business Service House Professional Student Others

wife
N.o. of 18 10 04 08 18 04
respondents

Based on occupation

18 18
20
15 10 8 N.o. of
10 4 4
5 respondents
0

From the above graph we can find that 62 persons are interested to become as
financial advisors. The interested candidates who want to become as a financial
advisors is analyzed based on their occupation, and those details are as follows. Here
maximum people are interested to work as financial advisors are business people and
students that are 18. And next one is service people who are10. And next one is
professionals that are 8. And the last one is a house wives and others both are
interested the same that is 4.

54
Income status-wise:-

The interested candidates who become to financial advisors is analyzed based

on their income status and those details are as follows.

Income status <60 thousands 61-1.5 lakhs 1.5 lakhs- >3 lakhs
3lakhs
N.o. of persons 12 16 24 10

Based on income

30 24
25 16
20 12 10
15 N.o. of persons
10
5
0
1.5 lakhs-
61-1.5
thousands

>3 lakhs
lakhs

3lakhs
<60

We have divided the interested candidates based on their income status-wise.

and those details are as follows. That is less than 60,000 thosands, 61-1.5 lakhs, 1.5-3
lakhs, and finally more than 3 lakhs.

Here we found that the interested candidates are12, whose annual income is
RS .60, 000 thousands, and the next interested candidates are16, whose annual income
is 61,000-1.5 lakhs, and the next interested candidates are 24,whose annual income is
1.5-3 lakhs, and finally the that the interested candidates are 10,whose annual income
is more than 3 lakhs.

Here we can find that, from the above graph that the interested candidates
whose annual income is 1.5-3 lakhs is maximum.

55
 CHAPTER – 5
FINDINGS SUGGESTIONS AND
CONCLUSIONS

56
 FINDINGS AND SUGGESTIONS

FINDINGS:

o In the field work we came to know that there are very less people who do not
know about the LIC.
o This survey reveals that 31% of the respondents are interested to become
financial advisors for the company, and 69% of the respondents are not
interested to become as financial advisors for the company.
o 58% of the people were interested to work as part time, and 42% people were
interested to work as full time workers.
o Here we found that 71% of the interested candidates were males, and 29% of
the candidates were females.
o The percentage of the candidates that are interested from single group is 23%
and 77% percentage from married group.
o There are some reasons for which the candidates are not interested join as
financial advisors, they are:
1) Lack of awareness.
2) Less interest.
3) Lack of knowledge.
4) Lack of experience.
5) Less commission.
o Most of the candidates are looking for a minimum salary.

57
 CONCLUSION

o Most of the candidates don’t know about the benefits, what they get will if
they join in “LIC COMOANY”. So impart them clearly.
o The awareness level of “LIC COMPANY”. Should be increased by
conducting various promotional activities.
o “LIC COMPANY” branches has not established in all district head quarters.
So please make it, and then only “LIC COMPANY” will reach every one.
o Promotional activities have to be conducted to increase the awareness level in
rural areas.
o One of the best ways to attract financial advisors is by providing high
commission for achieving certain sales figures. And by providing them good
work environment and facilities.

58
 ANNEXURE - QUESTIONNAIRE

Personal details:-

Name:_________________________________ Gender: Male □ Female □

Address: ____________________________
City:_________________________________ Phone No.:__________________

1. Age:
<25 yrs □ 26-35yrs □ 36-45yrs □ 46-55yrs □ >55yrs □
2. Marital Status: Married □ Single □
3. Occupation:
Business □ Service □ Housewife □ Professional □ Student □ Others
□
4. Income:
<60,000 □ Rs.60, 000-1.5lakhs □ Rs.1.5 lakhs-3 lakhs □ >Rs.3 lakhs□
5.Do you know about ICICI-Pru life insurance
Yes □ No □
6. How do you know about ICICI-Pru life insurance?
Friends □ Relatives□ Agents□ Telemarketers □
T.V Ads□ Paper Ads □ Hoardings □ Internet □ Others□

7.How would rate your awareness of ICICI-Pru life insurance?

Unaware □ Low □ Medium □ High □
8.Do you have any marketing experience Yes□ No □

9.Would you be interested to become financial advisor for the ICICILIC company?
Yes □ No □
10. Would you like to work as?
□ Part timer □ Full timer

Signature of the student Signature of the prospect

59
BIBILIOGRAPHY

60
 BIBILIOGRAPHY

JOURNALS
1. Journal of III
2. Journal of IRDA
3. Insurance Chronicle
4. Outlook Money
5. Sigma of Swiss RE
6. Bank Quest, Journal of IIBF
Books:

1) Adams, Mike and Hardwick, Philip, “Firm size and growth in the
United Kingdom life insurance industry”, European Business
Management School, 2007.
2) Agarwal, Abhisek, “Distribution of life Insurance products in India”.
Insurance Chronicle, 2002.
3) Banerjee, T K, “Business Values in Bancassurance”, Bank Quest,
Journal Indian Institute of Banking & Finance, April –June 2004.
4) BCG, “Building Professionalism -The next step for life insurance in
China”, Boston Consulting Group, 2003.
5) Beck, Thorsten and Webb, Iann 2002, “Economic, Demographic and
institutional determinants of Life Insurance Consumption across
countries”, World Bank and International Insurance foundation, 2002.
6) Bhattacharya, Arjun and Rane O’Neil, “The Indian Economy-
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Sites:-
 www.iciciprulife.com

 www.licindia.com

 www.bimaindia.com

 www.bimaguru.com

 www.irdaindia.org

 www.assureindia.com

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