A PROJECT SYNOPSIS

FOR

LIFE INSURANCE

Submitted by

BAGRAO RAVIRAJ KASHINATH

(2016017000782745)

In partial fulfillment of requirements

For the reward of the degree

OF

MASTER OF BUSSINESS ADMINISTRATION

B.K.BIRLA COLLEGE
KALYAN WEST
 ACKNOWLEDGEMENT

We would like to take this opportunity to express my deep gratitude towards all those who

have in various ways helped me in the completion of this project. I like this opportunity to

extend my sincere thanks to who provided me this great opportunity to work on a project for

the company.

Once again I would like to express my sincere thanks to All Management Staff and

employees of Life Insurance Corporation of India (LIC) New Delhi who encourage me

and provided required helped me in completion of this project.

 CONTENTS

Page Number

ACKNOWLIDGEMENT……………………………………………………………………3

CHAPTER 1

INTRODUCTION......................................................................................................................5

CHAPTER 2

LITERATURE REVIEW........................................................................................................17

CHAPTER 3

RESEARCH METHODOLOGY………………………………………………………....…23

CHAPTER 4

DATA ANALYSING AND FINDINGS……………………………………………….…..26

CHAPTER 5

CONCLUSION AND SUGGESTION……………………………………………………...37

QUESIONNAIRE..................................................................................................................41

BIBLIOGRAPHY…………………………………………………………………………44
 INTRRODUCTION

Wherever there is uncertainty there is risk. The risk cannot be averted. The risk is uncertainty
of the financial loss. We don’t have any command on uncertainties. This makes it essential
that we think in favour of a device that becomes instrumental in spreading the loss. It is in
this context that we think about insurance. Protection against the possible chances of
generating uncertain losses. It eliminates worries and miseries of losses or destruction of
property and death.

Life insurance is a contract between you and a life insurance company, which provided you a
death during the contract term. Buying insurance is extremely useful if you are the principal
earning member in the family unfortunate premature demise, your family can remain
financially secure because of the life that you have purchased. The primary purpose of life
insurance is therefore protection of the family in the even insurance is also seen as a tool to
plan effectively for your future years. Today, the market offers insurance plans that not just
cover your same time grow your wealth too. If you have dependants and financial
responsibilities toward them, then you certainly need. Having a family means dependant,
which in turn means financial commitments. Finance comes in the form of loans, children s
education, medical expenses etc. Imagine what would happen if you were to lose your life
suddenly or become disabled being insured in a situation like this is a necessity. When you
insured your life, in effect what you are doing insuring your earning capacity that your
dependents will be able to continue living without financial hardships even in case.

Life wasn’t designed to be risk free. The key is not to eliminate risk, but to estimate it
accurately and manage it wisely. Insurance sector have characteristic that give can boost to
the growth of any economy .it is due to the savings done at the individual level and at micro
level it generates funds for infrastructure building as the cash flow is constant while the
payout is differed, so that the insurance companies are becoming biggest investors in long
gestation infrastructure development projects and hence have a great Importance to the
developing economy like India. Insurance sector with an annual growth rate of 15-20% and
the largest number of life insurance policies in force, the potential of the Indian insurance
industry is huge.

OBJECTIVE OF THE STUDY:

1) To determine the present position and satisfaction of customer in Life Insurance

Corporation of India

The main objective of the project was to analyses consumer satisfaction of Life Insurance
Corporation of India with other services in Delhi. And also present position of the company.

2) To determine the market share of different brands. The second objective of the project was
to determine the market share of different brands available in the market. There was a tough
competition for the brand in the market. Therefore to get establish, company had to make its
competitors analysis and need to determine where do they stand.

3) Responses of customer Responses from them were collected through survey and for the
questionnaire were prepared for both of them.

4) Benefits derived by assessing consumer satisfaction are:

- Feedback to organization regarding product.
- Understanding customer s requirements.
- Providing superior service to customer.
- Strengthen the relationship with customers.
- Formulating sales strategies.

5) Identify pros and cons of the brand.

This was a fundamental objective of the whole research. Company wants to
identify that where does the brand lack. In other words, what are the brands
so that it can rectify them in order to establish the brand in the market.

6) Suggestions and recommendations.

The objective of the research was not only to find out the problem but also
the identification of solutions or suggestions of the problems.

\
INDUSTRY PROFILE

The industries, businesses and individuals are considerably by the services of insurance
organization.

A. The oldest form of insurance (12th century) is marine insurance. After wards in 16th
century fire insurance is started in Germany.

B. The first registered life office was Hand in Hand Society established in 1696.

C. in India the first life insurance was started in the Bengal Presidency in 1818 knows as
oriental life insurance company.

D. Experiencing so many ups and downs the insurance business was found in changed
shapes. Particularly after attaining independence and to the more specific after nationalizing
in 1956.

E. There was major change in the insurance sector after globalization in 2001. The private
player in the insurance industry and ends the dominance of LIC.

F. The different MNC s company of foreign country enters in the insurance industry with the
joint venture with Indian companies. Today total 11 private life insurance companies are
working in insurance industry.

HISTORY

1912: the Indian Life Assurance Companies Act enacted as the first stature to regulate the life
insurance business.

1928: the Indian Insurance Companies Act enacted to the government to collect statistical
information about both life and non life insurance businesses.

1938: Earlier legislation consolidated and amended to the insurance Act with the objective of
protecting the interests of the insuring public.
1956: 245 Indian and Foreign insurers and provident societies taken over by the central
government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with
a capital contribution of Rs. 5 core from the Government of India.

COMPANY PROFILE

Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the life
insurance business in India with its Head Office at Mumbai. About 154 Indian insurance
companies, 16 non-Indian companies and 75 provident fund societies 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 by means of a comprehensive bill. The Parliament of India passed the Life
Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of
India was created on 1st September, 1956, with the objective of spreading life insurance
much more widely and in particular to the rural areas with a view to reach all insurable
persons in the country, providing them adequate financial cover at a reasonable cost.
 Objective of LIC

Following are the objectives of Life Insurance Corporation of India:

(i) “Spreading life insurance much more widely and in particular to the rural areas and to the
socially and economically backward classes, with a view to 72 introduced in late 1950‟s
were phased out in 1980‟s and replaced by reach all insurable persons in the country and
provide them adequate financial coverage against death at a reasonable cost,

(ii) Maximizing mobilization of people savings by making insurance linked savings

adequately attractive

(iii) Investing funds 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 and

(iv) Meeting the various life insurance needs of the community that would arise in the
changing social and economic environment through its Family Schemes and Group Insurance
Schemes.

Under Indian conditions there are only two broad classifications of insurance companies: life
and non-life insurance. The life insurance activities are solely managed by Life Insurance
Corporation of India in the public sector. The Life Insurance Corporation (LIC) was
established about 55 years ago with a view to provide an insurance cover against various
risks in life. A monolith then, the corporation, enjoyed a monopoly status and became
synonymous with life insurance.
At the industry level, along with the Government and the General Insurance Corporation, it
has helped establish the National Insurance Academy. It presently transacts individual life
insurance businesses, group insurance businesses, social security schemes and pensions,
grants housing loans through its subsidiary, markets savings and investment products through
its mutual fund. It has a very wide range of business strategy all over India and abroad. LIC
of India has been one of the pioneering organizations in India who introduced the leverage of
Information Technology in servicing and in their business.

LITERATURE REVIEW

WHAT IS CUSTOMER SATISFACTION

Customer satisfaction, a term frequently used in marketing, is a measure of how products and

services supplied by a company meet or surpass customer expectation. Customer satisfaction

is defined as "the number of customers, or percentage of total customers, whose reported

experience with a firm, its products, or its services (ratings) exceeds specified satisfaction

goals." -By Giese and Cote

Need for measuring customer satisfaction.

Customers are too good to lose

---------- Lets keep them happy!

Customer is the king.

In the era of cutthroat competition and economic recession, above axiom has
more importance than ever before.
Marketing starts with the customer and ends the customer .
-Peter F. Drucker.

So no organization, small or big ignores the customers. Earth is not the center of universe but
revolves around the Sun .
-Copernicus.
Similarly, we have come to believe that business firm is not the center of economic universe
but revolves around the customer. Build customer and not only products. Building customers
is not a single step exercise but a process.

SCOPE OF THE STUDY

To find out the satisfaction level of customers towards the quality services provided by LIC

Methods of data collection

SOURCES OF DATA

The sources of data may be classified into (a) primary sources and (b) secondary sources.

Primary Sources

Primary sources are original sources from which the researcher directly collects data that
have not been previously collected, e.g., collection of data directly by the researcher on brand
awareness, brand preference, brand loyalty and other aspects of consumer behaviour from a
sample of consumers by interviewing them.

Secondary Sources

These are sources containing data that have been collected and compiled for another purpose.
The secondary sources consist of readily available compendia and already compiled
statistical statements

The primary source of data collection

Through QUESTIONAIRES. The questionnaire was filled by respondents.

Sample size: 50 respondents

Universe : Delhi

DATA ANALYSIS AND INTERPRETATION

Personal Details of the customer

Personal details

Age Respondents
18-24 4
24-35 19
35-45 16
45-55 8
55-65 1

ANALYSIS

Above diagram consist five classes of different age groups. Here customer 19 customer
belongs to 25-35 age groups, 16 customers fall in the age group 35-45 years. Other 8
customer comes are in the class 45-55 years the age group of 18-24 consists four customer
reaming customer is in age group 55-65 years. Here majority of customer belong to the group
25-35 years.

Q2. Do you think is it essential to have Life Insurance?

YES_______________________________ NO____________________________

Yes No Total
No. of Respondents 45 5 50
% of Respondents 90 10 100

ANALYSIS

To this question 45 consumers reported YES and 5 consumers reported NO.

Q3. Which are the companies you invested your money for Life Insurance?

Companies No. of
Respondents’ %

Kotak Mahindra Life Insurance 8 16

LIC 13 26
Bajaj Allianz - -
Tata AIG 6 12
Max New York Life Insurance 3 6
HDFC Life Insurance 9 18
ICICI Prudential Life Insurance 8 16
SBI 3 9
ANALYSIS

From the above figure we come to know that customer is also investing money in other life
insurance companies. The major player in insurance is LIC holding 26% of total sample. The
second major player Kotak Mahindra Life Insurance is holding 16%. HDFC 18% and AIG
are having share of 12% & the Max New York 6% & SBI are having 9%.

Q4. Why did you choose Life Insurance Corporation?

Respondents’ %
ROI 18 36
Peer Pressure 15 30
Tax Benefit 10 20
Security /safety 2 24
Low Premium 5 10
TOTAL 50 100

ANALYSIS

The above diagram shows 36% of respondents choose because of good returns, 30% because
of peer pressure and remaining 24% opt. Because of tax benefit, safety and 100 premium
respectively.
Q5. What kind of services you expect from insurance provides.

Respondent %
Easy access ability to Deposit Center 16 32
Time to time premium collection 8 16
Provision in case of Dues 6 12
Bonus & other schemes 20 40
TOTAL 64 100

Note.
Some of customer are expecting more than single service.

ANALYSIS

Out of total 50 respondents 32% like to have bonus and other service as a prime concern,
16% like to have provision in case of dues and remaining 31% & 12% respondents say. They
need time-to-time premium collection and easy accessibility to deposit centers as a concern
before choosing insurance provider.

Q5. How will you rate the services given by Life Insurance Corporation of India?

% Of
Respondents Respondents
Poor 1 2
Average 16 32
Good 27 54
Excellent 6 12
TOTAL 50 100
ANALYSIS

Out of 50 respondents 54% have ratted Life Insurance Corporation of India services as good
and 32% have ratted as average. And remaining 12% have ratted as Excellent.

Q6. What difference you find between LIC & your previous Insurance provider.
Respondents %
Good Returns 16 21
Effective Service/liquidity 12 15
Tax Planning 28 36
Security/ Safety Benefit 22 28
TOTAL 50 100
Note.
Some of customers are having more than one plan more Benefit are expected
in one plan. Total surveys of customers are 50.

Q7. Do have any suggestion for Life Insurance Corporation of India?

YES _____________NO___________

YES NO TOTAL
No of Respondents 39 11 50
% of Respondents 78 22 100
ANALYSIS

To this question 39 consumers reported YES and 11 consumers reported NO .

Q8. In future, will you purchase policies from Life Insurance Corporation of India?

YES_________ NO_________

YES NO TOTAL
No of Respondents 32 18 50
% Of Respondents 64 36 100
ANALYSIS

To this question 32 consumers reported YES and 18 consumers reported NO .

RECOMMENDATIONS
1) There is scope to sale insurance policy by concentrating on age group 18-24 years here
potential of customers are there.(Example. Software professional, BPO employees, and
professionals) Flexi plan can be sold by concentrating on age group 35-45 years. (Example.
Government employees, executives and businessman)

2) As major respondents think to have life insurance policy is very essential there is lot of
scope for insurance company.

3) Life Insurance Corporation of India should try to build trust among the public by making
people aware of their investment is safe, high return on investment, Tax Benefits.
4) As more respondents are investing in Life Insurance Corporation of India for getting high
return on investment the company should try to provide attractive returns on investments in
future.

5) Life Insurance Corporation of India should introduce attractive policies & also attractive
bonus on policies to attractive more potential customers.

6) Approx 36% of respondents differ with there previous insurance provider, they field that
Life Insurance Corporation of India providing good tax benefit for there investment so Life
Insurance Corporation of India if possible try to provided more tax benefit customer.

7) 64% respondents are willing to purchases Life Insurance Corporation of India policies in
future this benefit Life Insurance Corporation of India as mort potential customer in future.

CONCLUSION

After conducting market research for Life Insurance Company we came to know different

needs of consumers, their valuable suggestions, responses to the different questions. With this

information we can conclude that there is good market awareness about Life Insurance

Corporation of India in the market. Customer satisfaction level of most respondents is higher

for Life Insurance Corporation of India, which is provided by survey. Higher satisfaction

level of life insurance Corporation of India was monthly due to LIC provides good tax benefit

for the consumers also ROI, security etc. LIC plan is the best-sold plan in market by Life
Insurance Corporation of India. This conveys that the customer s is switching to retirement

plan.
ANNEXURE
 QUESTIONNAIRE

1. Personal detail

Name: __________________________________________________

Age:-
18-24

25-35

35-45

45-55

55 and above

Phone No. _______________________________________________

E-mail.
________________________________________________________

Office Address:
________________________________________________________

Residential Address: -
________________________________________________________

2. Do you think is it essential to have Life Insurance?

YES NO
3. Which are the companies you invested your money for Life Insurance?

a) Kotak Mahindra Life Insurance

b) LIC
c) Bajaj Allianz
d) Tata AIG
e) Max New York Life Insurance
f) HDFC Life Insurance
g) ICICI Prudential Life Insurance
h) SBI

4. Why did you choose Life Insurance Corporation of India?

a) ROI
b) Peer Pressure
c) Tax Benefit
d) Security /safety
e) Low Premium

5. What kind of services you expect from insurance provides.?

a) Easy access ability to Deposit Center

b) Time to time premium collection
c) Provision in case of Dues
(Policy Lapse)
d) Bonus & other schemes

6. How will you rate the services given by Life Insurance Corporation of India?
a) Poor
b) Average
c) Good
d) Excellent

7. What difference you find between LIC & your previous Insurance provider.

a) Good Returns (HIGHEST)

b) Effective Service/Liquidity
c) Tax Planning
d) Security/ Safety Benefit & Protection on your Capital

8. Do have any suggestion for Life Insurance Corporation of India?

YES NO

If yes please write below:

…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
…………………………………………………………………………………………………
………………………............

9. In future, will you purchase policies from Life Insurance Corporation of India?

YES NO