A STUDY ON LIFE INSURANCE CORPORATION OF INDIA

AN INTERNSHIP REPORT

Organization Study at
LIFE INSURANCE CORPORATION OF INDIA
T. Narasipura branch

Submitted in partial fulfilment of the requirements for the award of the degree of

BACHELOR OF COMMERCE2023-24

FROM UNIVERSITY OF MYSORE

SUBMITTED BY:
RAJU.S
UUCMS Register Number
U01AX21C0094

UNDER THE GUIDANCE OF:

VENKATESH. S
Assistant professor of internship
Guide Assistant Professor / Associate
ProfessorDepartment of Commerce

Govt of Karnataka Department

of collegiate Education

GOVERNMENT FIRST GRADE COLLEGE T. NARASIPURA-571124 Page 1

 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA

STUDENT DECLARATION

I, Mr. Raju S Register No. U01AX21C0094, hereby declare that the

Internship project entitled ―ORGANIZATION STUDY‖ is prepared by
me and submitted to the UNIVERSITY OF MYSORE in the partial
fulfilment of the requirement for the award of the degree of
“BACHELOR OF COMMERCE”
is the original work done by me under the guidance and supervision of
VenkateshS, Assistant Professor /Associate Professor, Department of
Commerce of Government First Grade College ,T.Narasipura-571124.
I further declare that it has not been previously submitted for the award
of any degree or diploma or fellowship or similar title of any
University/ Institution.

Raju S
(Signature of the student)

Student name& Register no.

Place: T. Narasipura
DATE: RAJU S & U01AX21C0094

GOVERNMENT FIRST GRADE COLLEGE T. NARASIPURA-571124 Page 2

 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA

GOVERNMENT FIRST GRADE COLLEGE T. NARASIPURA-571124 Page 3

 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA

GOVERNMENT FIRST GRADE COLLEGE T. NARASIPURA-571124 Page 4

 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA

Telephone Number:08227260200

E mail :[email protected]

Principal Mobile Number:9481815767

Govt. Of Karnataka
Dept . Of Collegiate Education
GOVERNMENT FIRST GRADE COLLEGE,
T. NARASIPURA -571124, MYSURU DISTRICT
NAAC Accredited with ‗B+‘ Grade and Rusa Funded College
No.GFGCTNP/ DATE/2023/2024

APPROVAL CERTIFICATE BY THE INSTITUTION

This is to certify that Ms. RAJU S Student of Third B.Com successfully

completed his/ her Internship project report on

OrganizingStudy , as part of academic study 2023 24

The survey has been conducted under my guidance and supervision, of Venkatesh
S,Assistant Professor to the best of my knowledge the matter presented in the report is
authentic.
The project is here approved by me.

Internal Guide HOD

Pros. VENKATESH S Savitha P.R

Principal
Dr . Uday Kumar H.V

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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA

Telephone Number:0822-260200
E mail :[email protected]
Principal Mobile
Number:9481815767

Govt. Of Karnataka
Dept . Of Collegiate Education
GOVERNMENT FIRST GRADE COLLEGE,
T. NARASIPURA -571124, MYSURU DISTRICT NAAC
Accredited with „B+‟ Grade and Rusa Funded College
No.GFGCTNP/ /2022-23 DATE: / /2024

CERTIFICATE FROM THE INTERNSHIP GUIDE

This is to certify that Ms. Raju S bearing UUCMS Register Number
U01AX21C0094 Studying in Third year Bachelor Of Commerce,
student of ourcollege and he/ she Successfully carried internship project
titled
under the guidance of Venkatesh S Assistant Professor /Associate
Professor, Department of Commerce, for the degree of ―BACHELOR
OF COMMERCE‖from UNIVERSITY OF MYSORE, during the
Academic year 2022-23
The study is based on the original result and has not previously
formed the basis for awarding any degree, diploma, associate ship,
fellowship, or similar title from any other universities.

Place: T.Narasipura-571124 Venkatesh S

Assistant Professor
Dept. of commerce

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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA
ACKNOWLEDGMENT

The successful completion of any work would be incomplete without

mentioning the people who made it possible and their constant
encouragementsteered me to my success.
With god Almighty‘s grace and mercy and the prayers of all my near
and dearones, I have been able to conduct this study, I would like to
thank MY PARENTES for their love and encouragement and for
having given me an opportunity to pursue this course.
I extend my fullest gratitude to my internal guide Venkatesh S,
Assistant professor/Associate professor ,Department of Commerce
and all the facultymembers in the department for their
encouragement, guidance and valuablesuggestions and inspiration
provided in the process of completion of this internship project
report.
I am highly indebted to Principal Uday Kumar H .V, for the facilities
provided toaccomplish this internship.
I would like to thank my Head of the Department Savitha P.R for his
constructive criticism throughout my internship.
I am extremely grateful to my Department staff member my parents and
friendswho helped me in successful completion of this internship.
Last but not least : I also thank all MY FRIENDS ,and special
thanks to (Friends), who have helped me directly or indirectly in
the execution of thisstudy.
Sincerely, Surname
Raju. S
Name
Place:
Date:

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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA

INDEX

Sl. No Chapter No. Contents Page No.

1 Chapter-1 Introduction Introduction the topic, 01-13

definition,
significances, pitfalls,
research models, and
Significance of the
study
2 Chapter-2 Literature Review Introduction to insurance, 14-16
Risk in life insurence
3 Chapter-3 Research Statement of the 17-25
Methodology/ problem, Need for the
Research Design Study, Objectives,
Hypothesis, Scope of
the Study, Sources of
Data,Sampling Plan
(Universe, target
Population ,
respondent, sampling
method etc.,) data
collection instruments
, Statistical tools,
Limitations, Chapter
Schemes
4 Chapter-4 Company Profile History , 26-31
servic
es, customers,
suppliers ,
competitors,
networking,
Strategies , financial
performance
5 Chapter -5 Finding, Final report of the Project 32
Recommendations
andConclusions

6 Chapter-6 Refernces Links And Books I 33

Reffered

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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA
CHAPTER1:
Introduction

Life insurance is a contract between an insurer and a policyholder. A life

insurance policyguarantees the insurer pays a sum of money to named
beneficiaries when the insuredpolicyholder dies, in exchange for the premiums paid
by the policyholder during their lifetime. Life insurance is a legally binding contract.
For the contract to be enforceable, the life insurance application mustaccurately disclose
theinsured‘s past and current health conditions and high-risk activities.
For a life insurance policy to remain in force, the policyholder must pay a single
premium upfront or pay regular premiums over time.
When the insured dies, the policy‘s named beneficiaries will receive the policy‘s face
value, ordeath benefit.
Term life insurance policies expire after a certain number of years. Permanent life
insurancepolicies remain active until the insured dies,stops paying premiums, or surrenders
the policy.
A life insurance policy is only as good as the financial strength of thecompany that
issues it.State guaranty funds may pay claims if the issuer can‘t.

 Who Should Buy Life Insurance?

Life insurance provides financial support to surviving dependents or other

beneficiaries after the death of an insured. Here are some examples of people who
may need life insurance:

Parents with minor children—If a parent dies, the loss of their income or
caregiving skills could create a financial hardship. Life insurance can make sure the
kids will have the financial resources they need until they can support themselves
Parents with special-needs adult children—For children who require lifelong care
and will never be self-sufficient, life insurance canmake sure their needs will be met
after their parents pass away. Thedeath benefit can be used to fund a special needs trust
that a fiduciarywill managefor the adult child‘s benefit.1
Adults who own property together—Married or not, if the death of one adult would
mean that the other could no longer afford loan payments, upkeep, and taxes on the
property, life insurance may be a good idea. An example would be an engaged couple
who took out a joint mortgage tobuy their first house.
Elderly parents who want to leave money to adult children who provide their
care—Many adult children sacrifice by taking time off work to care for an elderly
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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA
parent who needs help. This help may alsoinclude direct financial support. Life
insurance can help reimburse theadult child‘scosts when the parent passes away.

Young adults whose parents incurred private student loan debt or cosigned a
loan for them—Young adults without dependents rarely need life insurance, but if a
parent will be on the hook for a child‘s debt after their death, the child may want to
carry enough life insurance to payoff that debt.
Young adults who want to lock in low rates—The younger and healthier you are,

the lower your insurance premiums. A 20-something adult might buy a policy even
without having dependentsif there is an expectation to have them in the future
Wealthy families who expect to owe estate taxes—Life insurancecan provide funds
to cover the taxes and keep the full value of the estate intact.
Families who can‘t afford burial and funeral expenses—A small life insurance
policy can provide funds to honor a loved one‘s passing.
 Businesses with key employees—If the death of a key employee, such as a
CEO, would create a severe financial hardship for a firm, that firm may have an
insurable interest that will allow it to purchase a life insurance policy on that

employee.

Married pensioners—Instead of choosing between a pension payout that offers a spousal

benefit and one that doesn‘t, pensioners can choose to accept their full pension and use
some of the money to buylife insurance to benefit their spouse. This strategy is called
pension maximization.

 Types of Life Insurance

Many different types of life insurance are available to meet all sorts ofneeds
andpreferences.

Term Life—Term life insurance lasts a certain number of years, thenends. You
choose the term when you take out the policy. Common terms are 10, 20, or 30 years.
The best term life insurance policies balance affordability with long-term financial
strength.
Level Term—The premiums are the same every year.
Increasing Term—The premiums are lower when you're
younger and increase as you get older. This is also called
―yearly renewable term.‖
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Return of Premium—Return of premium (ROP) policies include a built-in savings

mechanism. You'll pay a flat rate for the duration of your policy, but unlike
traditional term lifeinsurance, you'll get your money back at the end of the term
Single Premium—In this case the policyholder pays the entire premium up front
instead makingmonthly, quarterly, or annual payments
Whole Life—Whole life insurance is a type of permanent life insurance that
accumulates cash value.
Universal Life—A type of permanent life insurance with a cash valuecomponent that
earns interest, universal life insurance has premiumsthat are comparable to term life
insurance. Unlike term and whole life,the premiums and death benefit can be adjusted
over time.
Guaranteed Universal—This is a type of universal life insurance thatdoes not build
cash valueand typically has lower premiums than whole life.
Variable Universal—With variable universal life
insurance, the
policyholder is allowed to invest the policy‘s cash value.
Indexed Universal—This is a type of universal life insurance that letsthe
policyholder earn afixed or equity-indexed rate of return on the cash value
component.
 Burial or Final Expense—This is a type of permanent life insurancethat
has a small deathbenefit. Despite the names, beneficiaries can use the death benefit

as they wish.

 Additional Uses for Life Insurance

Most people use life insurance to provide money to beneficiaries whowould suffer a
financial hardship upon the insured‘s death. However,for wealthy individuals, the tax
advantages of life insurance, includingtax-deferred growth of cash value, tax-free
dividends, and tax-free death benefits, can provide additional strategic opportunities.
Funding Retirement—Policies with a cash value or investment component can
provide a source of retirement income. This opportunity can come with high fees and
a lower death benefit, so it may only be a good option for individuals who have
maxed out other tax-advantaged savings and investment accounts. The pension
maximization strategy described earlier is another way life insurancecan be used to
fund retirement.
Avoiding Taxes—The death benefit of a life insurance policy is usually tax free.4
Wealthy individuals sometimes buy permanent life insurance within a trust to help
pay the estate taxes that will be due upon their death. This strategy helps to preserve
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the value of the estate for their heirs. Tax avoidance is a law-abiding strategy for
minimizing one‘s tax liability and should not be confused with tax evasion, which is
illegal.
Borrowing Money—Most permanent life insurance accumulates cash value that
the policyholder can borrow against. Technically, youare borrowing money from
the insurancecompany and using your cash value as collateral. Unlike with other

types of loans, the policyholder‘s credit score is not a factor. Repayment terms
can be flexible, and the loan
interest goes back into the policyholder‘s cash value account. Policy loans can
reduce thepolicy‘s death benefit, however

 How Life Insurance Works

A life insurance policy has two main components—a death benefit and a premium.
Term life insurance has these two components, but permanent or whole life insurance
policies also have a cash value component

1. Death Benefit—The death benefit or face value is the amount of money the insurance
companyguarantees to the beneficiaries identified in the policy when the insured dies. The
insured might be aparent, and the beneficiaries might be their children, for example.
Theinsured will choose the desired death benefit amount based on the beneficiaries‘
estimated future needs. The insurance company will determine whether there is an
insurable interest and if the proposed insured qualifies for the coverage based on
the company‘s underwriting requirements related to age, health, and any hazardous
activities in which the proposed insured participates.
2. Premium—Premiums are the money the policyholder pays for insurance. The insurer
must pay the death benefit when the insured dies if the policyholder pays the premiums as
required, and premiumsare determined in part by how likely it is that the insurer will have
to pay the policy‘s death benefit based on the insured‘s life expectancy. Factors that
influence life expectancy include the insured‘s age,gender, medical history, occupational
hazards, and high-risk hobbies.2 Part of the premium also goes toward the insurance
company‘s operating expenses. Premiums are higher on policies withlarger death benefits,
individuals who are higher risk, and permanentpolicies that accumulate cash value
3. Cash Value—The cash value of permanent life insurance serves twopurposes. It is a
savings account that the policyholder can use duringthe life of the insured; the cash
accumulates on a tax- deferred basis.Some policies may have restrictions on withdrawals
depending on how the moneyis to be used. For example, the policyholder might take out a

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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA
loan against the policy‘s cash value and have to pay intereston the loan principal. The
policyholder can also use the cash value topaypremiums or purchase additional insurance.
The cash value is a living benefit that remains with the insurance company when the
insured dies. Any outstanding loans against the cash value will reducethe policy‘s death
benefit.

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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA

CHAPTER2:

LITERATURE REVIEW

Introduction to Insurance:

Insurance refers to a contract in which one party (known as insurer) promises tobear
the financial loss of another party (known as insured) in case of any such event, in
return of consideration
/payment (known as premium). The loss can orcannot be financial, but it should be
reducible to financial terms, and must involvesomething in which the one who has paid
the premium (insured) has an insurableinterest established by possession, ownership,
or some pre-existing relationship. The one who paid the premium receives a contract,
called as the insurance policy,which provide details regarding conditions and
circumstances under which the one who received the premium (insurer) will
compensate for the losses of the insured. The amount of money charged called as the
premium amount is set by the insurer for the coverage set in the insurance policy. If
the insured person experiences a loss which is covered in the insurance policy, the
insured submits a claim to the insurer for processing by the claims adjuster. The
insurer can hedge his own risk by taking reinsurance, where another insurance
company agrees to bear some of the risk, especiallythe primary insurer deems the risk
too large forit to carry.

Risks in Life Insurance:

There are various types of risks in Life Insurance. Some of them are as follows:

1. Longevity Risk& Mortality Risk:

Longevity risk is the risk that a person, or persons, lives longer. In thecorporate
world, this affects pension funds and insurance companies. The corporate sponsor
of a pension plan, or insurer providing life assurance facilities, has the risk of
higher than expected pay-outs as a result of the increasing longevity of pension
plan or insurance policy holders. Mortality risk covers not only the risks associated
with recipients of annuities who are living longer than expected, but also the
opposite risk that the holder of a life insurance policy dies earlier thanexpected
during the term of the policy

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2. Liquidity Risk:
Liquidity Risk is the risk of failing to maintain requisite levels of cash and cash
equivalents andbeing unable to pay the claims of thepolicyholders in full.
Asset Liability Mismatch:
The present value of assets should be greater than the present valueof present value of
liabilities so as to ensure that the company wouldbe able to meet the liabilities by 23
liquidating the assets. These present values are not fixed and keep on changing
according to the interest rates prevailing in the market. If the interest rates are high,
the present values would decrease and vice versa. So, the assets to beinvested in have
to be carefully selected so as to achieve proper Asset Liability matching. There are
various techniques that can be usedto minimize this interest rate risk like
Reddington's Immunization in which assets are chosen in such a way that irrespective
of the interestfluctuations, the present value of assets remains larger than that of the
liabilities.
3. Technological Advancements
In the world of ever changing technology, its of utmost importance tobe conversant
and well versed with the current technology. AI (Artificial Intelligence) is becoming
increasingly popularly in the world, which affects insurance industry as well. The
way people approach insurance from ―insured‖ side as well as ―insurer‖ side would
have toadapt if AI was to becomeprominent in the future.
4. Competitors In Life Insurance Industry:
LIC (Life Insurance Corporation) is a major market player with which other life
insurance companies such as IDBI Federal Life competes forcapturing the market
share. The strategies, policies launched by the competitors tend to affect the company
in consideration.
5. Political Situation:
The political situation of the country majorly affects the way policies, and operations
are executed. In corporate world, lobbying (influencing political parties directly or 24
indirectly to get the work done) plays an important role in smooth operations of the
company. If the politicalscenario is chaotic, the business may be adversely affected.
6. Law and Order:
The Insurance business in India is regulated by IRDAI (Insurance Regulatory and
Development Authority of India) which is responsible for setting rules and standards

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for the insurance companies in the country.
7. Investment Risk:
Investment risk is the risk of incurring loss due to fluctuations in the market value of
the investments. These fluctuations may be due to market factors which affect the
entire market like inflation, rate of interest or firm/industry specific factors. The
investment is mainly done in 3 types of funds: Debt, Equity, and Hybrid

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CHAPTER3:

Research Methodology
Research is endless quest for knowledge or unending search for truth. It brings to
light new knowledge or corrects previous errors and misconceptions and adds in an
orderly way to the existing body of knowledge.
Research methodology is a way to systematically solve the research problem

Research methodology:
 Research Design - Descriptive
 Instrument - Questionnaire
 Technique - Survey
 Sources of data - Primary and Secondary

1. Primary Data:
Primary Data is that which is collected from primary sources, it is original data
which will becollected from officers and staff of life.
LIC of India by conducting interviews on the basis of objectives of the study.
It will also be collected from the investor customers by canvassing pre-designed
questionnaire.

2. Secondary Data:
The secondary data is already published data available through books
periodicals, annualreports, diaries, magazines and newspapers, journal and
websites.

Sampling frame
Sl No Type of Respondent No
1 Officers , Agents of LIC 150
2 Customers 500
Total 650




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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA
Research Hypothesis
 The products of LIC are most preferred by the customer.
 Customers have become conscious and aware of product mix of the products of LIC
of India
 The products of LIC of India provide life risk coverage to the insured in addition to
tax rebate.




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Need of Study
Life insurance is needed:
To ensure that your immediate family has some financial support in
theevent of yourdemise.
To finance your children‘s education and other need.
To have a saving plan for the future so that you have a constant source of
income afterretirement.
To ensure that you have extra income when your earnings are reduced dueto serious
illness oraccident.
To provide for other financial contingencies and life style requirement

Objectives of Study

To study various life insurance product of LIC of India.

To identify the factors affecting the investment in products of LIC of India.
To identify the most preferred and viable
products andservicescategorically.
To analyses the financial accounts of LIC of India.
To study the customer perception and satisfaction of life insurance productsof LIC of India.
The maximization of mobilization of people‘s savings for nation
buildingactivities.
Provide complete security and promote efficient service to the policy-holder at
economicpremium rate.

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HYPOTHESIS TESTING

Following are the statements of hypothesis in this research work.

• The products of LIC are most preferred by the customer.

• The products of LIC of India provides life risk coverage to the insured in
addition to taxrebate.
• Customers have become conscious and aware of product mix of the products
of LIC ofIndia.

From the said research study, it was found that alternate hypothesis that is the
concern is notfacing difficulty in paying short term debt has been accepted and
null hypothesis is rejected.

-Interpretation of hypothesis testing:

After testing the hypothesis, the researchers come out with his conclusion. The
explanation oftheory can also be considered as interpretation.

SCOPE OF THE STUDY

The scope of work includes understanding the requirements, designing, supply and
commission, install, test, configure, integrate with the corporate network/ solution
the items provided under this RFP and provide support for the same at Five Co-
located Data Centers which are Bengaluru FAR-DR, Rabble, Noida Bhubaneswar
and Hyderabad. The bidder has toprovide support for the items provided under this
RFP for a period Five years. This is not an all-inclusive list. The Bidder is expected
to absorb any other cost of material / services if any not particularly listed below.

1. The fallowing are covered under Scope of work for this RFP
 All conditions defined regarding delivery and installation and support shall be
applicable.
 To supply, install, configure, integrate commission, test with the corporate
network/ solutionthe equipment/solution procured under this RFP
 Clause deleted
 To support the networking/other equipment /solution procedure under
this RFP at variouslocations.

2. On-site support (Facility management)

As part of On-site support, the vendor should post L1 engineers as per details given
below. Thevendor will have to submit the Curriculum Vitae (CV)of the proposed
Service-Delivery Manager, L1engineers matching the qualification criteria as
defined in this RFP. The successful bidder has to submit a Background Verification
Report conducted by Police of all resources deployed (L1 support, Offsite L3

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supportand Service Delivery Manager).

a) The onsite-engineers at LIC offices and Data Centers should be capable

of monitoring andtroubleshooting any problem related to LIC‟s network and
networking equipment deployed in
LIC. Co-ordinate with all the stake-holders and resolve the network related issue.
b) Normal office timings will be an hour before and after the office hours of LIC
(Monday to Friday). However, as per the changing business needs, LIC may askthe
Personnel to report for duty in different time Windows as per the need of LIC.

Note:
No telephone connection, No PC and No laptop will be provided by LIC to the
onsite support persons. The on-site L1 and L2 support may also be required to work
on Sunday/LIC holidaysor beyond office hours on working days, for which an
advance notice will be given.

3. Responsibilities of on-site Level-one (L1) resource:

The responsibilities of L1 engineer as a part of On-Site support are as follows (list is

indicativeand not exhaustive:

a) Technical aspect of project implementation.

b) The support Personnel provided should be conversant with
SDN and theregularconfiguration from scratch.
c) Day-to-day maintenance of the network equipment etc. under the
entirezone, covered underthe scope of this RFP
d) The support Personnel provided should be conversant with the
regularconfiguration fromscratch.

4. Submission of CV, selection of the onsite Engineers by LIC, other conditions:

Following conditions shall be applicable regarding the onsite L1/SDM support:

a. Details of the concerned candidates along with his/her Curriculum Vitae
(CV) are to beprovided to LIC along with the photo-identity and supporting
documents (duly verified and attested by vendor) within 8 weeks from the date of
issue of purchase order/Letter-of-Intent.
b. If required, the candidates (for onsite support at LIC) may be interviewed by
LIC officials or LIC's consultant or persons nominated by LIC; including hands on
troubleshootingetc. based on which the candidate will be assessed and shortlisted.
c. If the candidate is not found to be suitable, vendor will have to provide an
alternate candidate. The selected candidate has to report to the LIC, within 2 weeks
of being intimated ofthe selection by LIC.
d. Shortlisted candidates will also form a standby pool for LIC. Engineers from
this pool only will be accepted by LIC for the onsite support (including the standby
resource). In case ofattrition/resignation, the pool has to be updated on regular basis
following the process defined above.

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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA
5. Minimum Qualification criteria for the onsite L1 Engineer

a) BE/B Tech/Diploma in Egg. Or MCA/BSc-IT/BSc-Computers.

b) A valid CCNA or equivalent certification.

c) Should be on roll of vendor as on the date of his/her deployment to LIC.

Should have worked in a PSU/Govt./ Pvt Bank or any other organization etc. having alarge
network and should have handled & managed networking equipment for a period two years.

d) Should have working experience of minimum two years and expertise

in routers,switches and other networking equipment.

6. Work-flow and ticketing:

LIC has implemented Network Monitoring Tools and Service-Manager for SLA
Management. The onsite engineers of vendor at CO-IT-Mumbai / Zonal Offices will
have to accept the trouble-tickets generated through Service-Manager and work on
that. The detailed procedure tobe followed for call resolution (work/call-flow) will be
conveyed to the vendor by LIC after theexecution of this agreement. The vendor will
have the entire ownership for the tickets monitoring and closure within the stipulated
SLAs. The vendor is expected to undertake the following:

a) Centralized Management of all network devices and services.

b) Remote (from LIC‟s CO-IT)/Onsite Configuration Management of Network
Devices
c) Integration of LICs network devices with Cisco-ACS for AAA services
& controls,Network Monitoring Tool, Prime tool etc.

7. Warranties:
The offer must include comprehensive on-site warranty for five years from
the date ofinstallation and acceptance of the systems by LIC. The warranty will
include supply and installation of all updates and subsequent releases.
The warranty will include back-lining with OEM.
The warranty, which for all practical purposes would mean Comprehensive On- site
Warranty, shall start and remain valid for five years from the date of installation of
products. On-site warranty will start from the date of successful installation
of the products.

8. Maintenance during Warranty Period:

The Bidder shall attend to calls and arrange to solve the problems within the
stipulatedtime lines as mentioned in the SLA.
LIC reserves the right to terminate the contract earlier, with two months‘
notice for reasons of non-performance and unsatisfactory services. In any case LIC‘s
decision in this casewill be final and binding. In case of vendor being discontinued
for deficiency in service, the contract may be terminated and the vendor may be
blacklisted by LIC and may not be allowed to participate in the future tenders for a

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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA
period to be decided by LIC

Limitation
 No printing and binding work of the project can be done due to covid crises.
 Cost effective
 Life insurance acquisition process can be annoying and perplexing

Sources of Data and methodology:

The study is mainly based on secondary data obtained from Reserve Bank of India
(RBI) database and Central Statistical Organization (CSQ) The time period
considered for the study is span of 20 years from 2001-02 to 2015-16. Hence, the
study captures the effects of liberalization after one-decade execution of reforms.
Exponential growth rates are calculated toobserve which variables are having high
growth during the study period. Regression technique is employed to assess the
impact of investment on total income of LIC during the study period.

Statement of the Problem

LIC still continues to be dominant life insurer even in the liberalized scenario of
India insurance and is moving fast on new growth surpassing its own past record. In
part to its private competitors, the corporation has incorporated information
technology enable services inits various operations with a view to enhance customer
service and convenience. It has facilitated online payment, on-line info kiosks, and
Interactive Voice Response System (IVRS),information centers in major metropolis
and has launched satellite sampark, even in the liberalized competitive environment
the three letters- LIC, stands as a synonym for insurance services, excellence in
strengthening the economic status of the od the country and above all creating trust
and confidence in the minds of its policy holders.

In considering the facts and issues a study was conducted to quantify the
service qualityrendering to the policy holders in Life Insurance Corporation
of India (LIC).

Insurance sector, as a whole has contributed to the development of economy through

generation of employment opportunities, acceleration of industrial growth etc.
Although Life insurance Corporation of India has its own significance and place in
the economy, it is not freefrom problems. Customer satisfaction is the true
differentiator for the success of any business and is more so in insurance, where the
products perceived to be intangible.

The three main aspects i, e. awareness level, service quality, satisfaction level of
policyholder, Studying the policyholder‘s behavior and analyzing the existing
marketing strategies of LIC of India with reference to various products offered by the
company along with plans and policyholders‘ satisfaction will be of social relevance
in the present in the present context.

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Objectives and Scope of study

 To measure the significant difference between the expectations and perception

towards variousaspects of service quality in LIC, and
 To offer suggestion on the basis of the study for improvement of quality
services to the existingpolicy holders.
 To understand the perception on Customer Relation activities of LIC.
 To identify the factors influencing policyholder‘s satisfaction in LIC products.
 To study the policyholder‘s response towards marketing activities of LIC.
 To identify the reasons to switch over from LIC to other companies.
 To identify the satisfaction level between rural and urban customers.

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Type of Research and research design

The universe for the is comprised of the policyholders of LIC in Thanjavur

Division. TheSample, policy holders were picked from sample frame, listed by the
three branch managers and five agents. The sample was then grouped as urban and
rural clusters. In each cluster, a sample of 150 7 policy holders were approached at
the convenience of the researcher and the policy holders. The necessary data were
collected from the 300 policyholders.

The researcher used convinces Descriptive research Design to study the service
quality. Awareness level, satisfaction level and its key dimensions in life insurance
sector. The questionis was divided into two sections. In the first part information
related to different social - economic and demographic criteria like income, age,
profession, educational qualification, etc. were collected. In the second part,
respondents were asked to evaluate parameters on awarenesslevel and service,
quality, relevant to insurance product of LIC on a 5-point scale (―strongly agree to
strongly disagree‖).

Specially, these service quality aspects were identified by a detailed exploratory

identificationprocess. This includes two focus group discussion with 300(Rural and
Urban) life insurance policyholders and eight in-depth interviews (three with branch
managers and five agents of LIC). Content analysis of focus group discussion and
depth interview were performed.

Data collection method

The study is mainly based on primary data collected from the field survey using pre-
tested questions are Secondary data were collected from various sources such as
journals, magazinespublication and various websites including the official website
of IRDA &LIC. The publishedresearch reports and market studies also helped the
research into the problem.

Limitation of study

 Main limitation to the study was the time available to conduct it, which
affected the processingand analyzing of the data.
 Sufficient number of respondents from all LIC service could not be included.
 The study is confined only to policyholder satisfaction of LIC and other
related issues arebeyond the purview of present study
 Due to time constrain the researcher covered only a limited period of study
2005-2006 to 2009-2010.
 Sample size is limited to 300people only. The sample size may not
adequately represent the whole market.
 It is difficult to know if all the respondents give accurate information: some
respondens tend togive misleading information.
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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA

CHAPTER4:
COMPANY PROFILE

Life Insurance Corporation of India (abbreviated as LIC) is an Indian

government ownedinsurance and investment corporation. It is under the ownership of
Ministry of Finance , Government of India .
The Life insurance Corporation of India was established on 1 September 1956, when
the Parliament of India passed the Life Insurance of India Actthat nationalized the
insurance industry in India. Over 245 insurancecompanies and provident societies
were merged to create the state-ownedLife Insurance Corporation of India.
As of 2019, Life Insurance Corporation of India had total life fund of ₹28.3trillion. The
total value of sold policies in the year 2018–19 is ₹21.4 million.Life Insurance
Corporation of India settled 26 million claims in 2018–19. Ithas 290 million policy
holders.
The LIC's executive board consists of Chairman, currently M R Kumar, andManaging
Directors,Vipin Anand, T. C. Suseel Kumar, Mukesh Kumar Gupta and Raj Kumar
The Central Office of LIC is based out of Mumbai which sits The Chairman,all four
Managing Directors, and all Executive Directors (Department Heads). LIC has a total
of 8 Zonal Offices namely Delhi, Chennai, Mumbai,Hyderabad, Kanpur, Kolkata,
Bhopal & Patna

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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA

 Founding organizations

The Oriental Life Insurance Company, the first company in India offering life
insurance coverage, was established in Kolkata in 1818. Its primary target market was
the Europeans based in India, and it charged Indians heftier premiums.[ Surendra Nath
Tagore had founded Hindustan Insurance Society, which later became Life Insurance
Corporation Check Special Policy Of LIC.
The Bombay Mutual Life Assurance Society, formed in 1870, was the firstnative
insuranceprovider. Other insurance companies established in the pre-independence
era included
 Postal Life Insurance (PLI) was introduced on 1 February 1884
 Bharat Insurance Company (1896)
 United India (1906)
 National Indian (1906)
 National Insurance (1906)
 Co-operative Assurance (1906)
 Hindustan Co-operatives (1907)
 The New India Assurance Co Ltd (1919)
 Indian Mercantile
 General Assurance
 Swadeshi Life (later Bombay Life)

The first 150 years were marked mostly by turbulent economic conditions.It
witnessed India's First War of Independence, adverse effects ofthe World War I and
World War II on the economy of India, and in betweenthem the period of worldwide
economic crises triggered by the Great depression. The first half of the 20th century
saw a heightened struggle for India's independence. The aggregate effect of these
events led to a high rate of and liquidation of life insurance companies in India. This
had adversely affected the faith of the general in the utility of obtaining life cover.

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HISTORY: -
The story of insurance is probably as old as the story of mankind. The same instinct
that promptsmodern 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 ofeminent people like Babu Methylal 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

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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA
as Indian enterprise with highly patriotic motives, insurance companies came into
existence to carry the message of insurance and social security through insurance to
various sectors of society. Bharat Insurance Company (1896) was also one of such
companies inspired by nationalism. The Swadeshi movement of 1905-1907 gave rise
to more insurance companies. The United India in Madras, National Indian and
National Insurance in Calcutta and the Co-operative Assurance at Lahore were
established in 1906. In 1907, Hindustan Co-operative Insurance Company took its
birth in one of the rooms of the Jadranko, 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 InsuranceAct 1938 was the first legislation
governing not only life insurance but also non-life insurance to provide strict state
control over insurance business. The demand for nationalization of life insurance
industry was made repeatedly in the past but it gathered momentum in 1944 when a
bill to amend the Life Insurance Act 1938 was introduced in the Legislative Assembly.
However, it was much later on the 19th of January, 1956, that life insurance in India
was nationalized. About 154 Indian insurance companies, 16 non-Indian companies
and 75 provident were operating in India at the time of nationalization. Nationalization
was accomplished in two stages; initially the management of the companies was taken
over by means of an Ordinance, and later, the ownership too by means of a
comprehensive bill. The Parliament of India passed the Life Insurance Corporation
Act on the 19th of June 1956, and the Life Insurance Corporation of India was created
on 1st September, 1956, with the objective of spreading life insurance much more
widely and in particular to the rural areas with a view to reach all insurable persons in
the country,providing them adequate financial cover at a
reasonable cost.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its
corporate office in the year 1956. Since life insurance contracts are long term
contracts and during the currency of the policy it requires a variety of services need
was felt in the later years to expand the operations and place a branch office at each
district headquarter. Re-organization of LIC took place and large numbers of new

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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA
branch offices were opened. As a result of re- organization 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 mar
of new business. Butwith re-organization happening in the early eighties, by 1985-86

LIC had already crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 113 divisional offices, 8
zonal

offices, 1381 satellite offices and the corporate office. LIC‘s Wide Area Network
covers 113divisional offices and connects all the branches through a Metro Area
Network. LIC has tied up with some Banks and Service providers to offer on-line
premium collection facility in selected cities. LIC‘s ECS and ATM premium payment
facility is an addition to customer convenience. Apart from on-line Kiosks and IVRS,
Info Centers 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.

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 A STUDY ON LIFE INSURANCE CORPORATION OF INDIA
COMPETATORS
LIC competitors include ICICI Bank, State Bank of India, Axis bank and HDFC Bank.
LIC ranks1st in Diversity Score on Comparably vs its competitors with CEO Rankings,
Product &Services, NPS, Pricing, Customer Services, Overall Culture Score, eNPS,
Gender and Diversity Scores.

CUSTOMER SERVICE
 Claims settlement requirements 
 Spurious calls
 Update Your contact details -offline
 Update Your Contact details
 Unclaimed Amounts of policyholders
 Bonus information

 Phone Help Line

 Insurance selector
 Policy guide lines &Helplines
 Tax benefit

PRODUCT/ SERVICE
LIC offers a variety of insurance products to its customers such as insurance plans,
pension plans, units -linked plans, special plans, and group schemes. Online Child
insurance Plans. The Parliament of India passed the Life Insurance of India Act on
June 19, 1956 creating theLife Insurance Corporation of India ,

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CHAPTER5:
CONCLUSION:-

The purpose of the study was how LIC works and how it retains the market. In FY21
LIC has the one of the leading organisations who offers best insurance plans. LIC
Collects highest ever premium of Rs. 1.84 trillion in FY21. LIC continued its performance
In new business, despites a highly challenging business environment due to the covid-19.
LIC is offering several plans which it says will provide insurance, protection, wealth
Creation in the long term, secures financial future after retirnment, health insurance.
Apart from these, one will get tax benefits under income tax act.

LIC employees are expected to benefit froom wage revision with over 25 percent hike
In their packets 5 days work week. They always try to hold their customers by offering
Them with great new policy every quarters.

The customers have been faith in LIC. And during pandemic of second wave on the
Month of may it benefited to lots of customers financially and give relief for them
And to their family.

Due to the great performance, it contributed 11% in the GDP growth during pandemic.
Which make new curious how it survives iin pandemic and make such growth in this year
That‘s why I choose LIC as a topic of internship report.

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CHAPTER6:

REFERENCE:-
https://www.licindia.in/getattachment/Bottom-Links/annaul-report/LIC-Annual-Report-2015
-16.pdf.aspx

http://.economictimes.indiatimes.com./features/brand-equity/most- trusted- brands-2012-top-50

service- brands/articleshow/17101285.cms

http://articles.economictimes.indiantimes.com/2012-01-23/news/30655455 i brand trust-report

-trust-research-advisory-n-chandramouli

https://ecnomictimes.indiantimes.com/market/ipos/fpos/government-purpose-to-hike-lic-
authorized-capital- to-rs-25000-crores/articleshow/8175724.cms

Times of India
Economic times
Zee busineses
Wikipedia

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