Customer Satisfaction

AN INDUSTRIAL TRAINING PROJECT REPORT

At

Life Insurance Corporation of India

Submitted by

Nisha Sehrawat

in partial fulfillment of the requirement for the award of the degree of

BBA-BDBM

IN

BRANCH OF STUDY

UNDER

PROFFESIONAL DEVELOPMENT ACTIVITY (PDA)

JAYOTI VIDYAPEETH WOMEN’S UNIVERSITY

JAIPUR

ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, who directly or indirectly contributed in the development of this work and who influenced my thinking, behavior, and acts during the course of study.

I express my sincere gratitude to Shri D.K. Mehrotra (Director of Company) for providing me an opportunity to undergo Industrial Training at LIC – Life Insurance Corporation Of India .

I am thankful to Mr Pramod Matolia (Project Investigator) for his support, cooperation, and motivation provided to me, during the training and for continuous inspiration, presence and blessings.

I also extend my sincere appreciation to Dr. Prabha Thoudam ( Dean of Department of Management and Commerce ) who provided her valuable suggestions and precious time in accomplishing my project report.

Lastly, I would like to thank the almighty and my parents for their moral support and my friends with whom I shared my day-to-day experience and received lots of suggestions that improved my quality of work.

Nisha Sehrawat

15th May 2013

Delhi

Self-assessment of Industrial Training by the student

Name of Student : Nisha Sehrawat

Name and address of Company / Industry : Life Insurance Corporation Of India

Branch Office – 123 Model Town–III

Delhi - 110009

Guide from Industry : Balraj Singh (Member of Corporate club for Agents )

Date of commencement of Industrial Training :1st april 2013

Number of days present 40 out of 45 days .

I hereby declare that, I have learnt following skills during my Industrial Training:

Sr.

Description

1 Gained knowelge about insurance sector in ecomomy .2 Learned about the present finanacial positons of the various insurance

companies which are the main players in insurance sector.3 Acquire more knowlede about the LIC of india.4 Able to know the people’s prefrence in the present market scenario for

taking an insurance.

DECLARATION

I , Nisha Sehrawat , student of BBA-BDBM studying in 8TH TRIMESTER , hereby declare that the Industrial Training report on “Customer satisfaction ” submitted to Jayoti Vidyapeeth Women’s

University, Jaipur, in partial fulfillment of degree of Bachelor of business administration is the original work conducted by me, at Life Insurance Corporation Of India Branch Office – 123 Model Town – III , Delhi - 110009

The information and data given in the report is authentic to the best of my knowledge.

This summer training report is not being submitted to any other place for award of any other degree, diploma and fellowship.

Nisha Sehrawat

Date: 15th May 2013

Place: Delhi

TABLE OF CONTENTS

Topic Page No.

1) INTRODUCTION OF THE TOPIC

2) OBJECTIVES OF STUDY

3) SCOPE AND RATIONALE OF THE TRAINING

4) COMPANY PROFILE

5) TRAINING METHODOLOG

6) STUDY OF “TOPIC”

7) DATA ANALYSIS AND INTERPRETATIONS

8) RESULTS AND FINDINGS

9) CONCLUSIONS

10) LIMITATIONS OF THE TRAINING

11) SUGGESTIONS AND RECOMMENDATIONS

12) BIBLIOGRAPHY

13) APPENDIX

ANNEXURE –I QUESTIONNAIRE

INTRODUCTION OF THE TOPIC

Customer Satisfaction

Customer satisfaction refers to how satisfied customers are with the products or services they receive from a particular agency. The level of satisfaction is determined not only by the quality and type of Customer experience but also by the customer’s expectations.

A customer may be defined as someone who:

• has a direct relationship with, or is directly affected by your agency and receives or relies on one or more of your agency’s services Or products. Customers in human services are commonly referred to as service users, consumers or clients.

• An organisation with a strong customer service culture places the customer at the centre of service design, planning and service delivery.

Customer centric organisations will:

• determine the customers expectations when they plan

• listen to the customer as they design

• focus on the delivery of customer service activities

• Value customer feedback when they measure performance.

Why is it important?

There are a number of reasons why customer satisfaction is important in Insurance Sector:

• Meeting the needs of the customer is the underlying rationale for the existence of community service organizations. Customers have a right to quality services that deliver outcomes.

• Organizations that strive beyond minimum standards and exceed the expectations of their customers are likely to be leaders in their sector.

• Customers are recognized as key partners in shaping service development and assessing quality of service delivery. The process for measuring customer satisfaction and obtaining feedback on organizational performance are valuable tools for quality and continuous service improvement.Customer satisfaction, a sinebuss term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four of a Balanced Scorecard.

In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy.

There is a substantial body of empirical literature that establishes the benefits of customer satisfaction for firms. Organizations need to retain existing customers while targeting new-customers;

Measuring customer satisfaction provides an indication of how successful the organization is at

providing products and/or services to the marketplace. Customer satisfaction is an abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other factors the customer, such as other products against which the customer can compare organisation’s produts .

Customer Satisfaction in 7 Steps in LIC

It's a well-known fact that no business can exist without customers. In the business of Website design, it's important to work closely with your customers to make sure the site or system you create for them is as close to their requirements as you can manage. Because it's critical that you form a close working relationship with your client, customer service is of vital importance. What follows are a selection of tips that will make your clients feel valued, wanted and loved.

1 ) Encourage Face-to-Face Dealings

This is the most daunting and downright scary part of interacting with a customer. If you're not used to this sort of thing it can be a pretty nerve-wracking experience. Rest assured, though, it does get easier over time. It's important to meet your customers face to face at least once or even twice during the course of a project. My experience has shown that a client finds it easier to relate to and work with someone they've actually met in person, rather than a voice on the phone or someone typing into an email or messenger program. When you do meet them, be calm, confident and above all, take time to ask them what they need. I believe that if a potential client spends over half the meeting doing the talking, you're well on your way to a sale.

2) Respond to Messages Promptly & Keep Your Clients Informed

This goes without saying really. We all know how annoying it is to wait days for a response to an email or phone call. It might not always be practical to deal with all customers' queries within the space of a few hours, but at least email or call them back and let them know you've received their message and you'll contact them about it as soon as possible. Even if you're not able to solve a

problem right away, let the customer know you're working on it. A good example of this is my Web host. They've had some trouble with server hardware which has caused a fair bit of downtime lately.

At every step along the way I was emailed and told exactly what was going on, why things were going wrong, and how long it would be before they were working again. They also apologised repeatedly,

which was nice. Now if they server had just gone down with no explanation I think I'd have been pretty annoyed and may have moved my business elsewhere. But because they took time to keep

me informed, it didn't seem so bad, and I at least knew they were doing something about the problems. That to me is a prime example of customer service.

3) Be Friendly and Approachable

A fellow SitePointer once told me that you can hear a smile through the phone. This is very true. It's very important to be friendly, courteous and to make your clients feel like you're their friend and

you're there to help them out. There will be times when you want to beat your clients over the head repeatedly with a blunt object – it happens to all of us. It's vital that you keep a clear head, respond to

your clients' wishes as best you can, and at all times remain polite and courteous.

4). Have a Clearly-Defined Customer Service Policy

This may not be too important when you're just starting out, but a clearly defined customer service policy is going to save you a lot of time and effort in the long run.

If a customer has a problem, what should they do?

If the first option doesn't work, then what?

Should they contact different people for billing and technical enquiries?

If they're not satisfied with any aspect of your customer service, who should they tell?

There's nothing more annoying for a client than being passed from person to person, or not knowing who to turn to. Making sure they know exactly what to do at each stage of their enquiry should be of utmost importance. So make sure your customer service policy is present on your site -- and anywhere else it may be useful.

5). Attention to Detail (also known as 'The Little Niceties')

Have you ever received a Happy Birthday email or card from a company you were a client of? Have you ever had a personalized sign-up confirmation email for a service that you could tell was typed from scratch? These little niceties can be time consuming and aren't always cost effective, but remember to do them. Even if it's as small as sending a Happy Holidays email to all your customers, it's something. It shows you care; it shows there are real people on the other end of that screen or telephone; and most importantly, it makes the customer feel welcomed, wanted and valued.

6). Anticipate Your Client's Needs & Go Out Of Your Way to Help Them Out

Sometimes this is easier said than done! However, achieving this supreme level of understanding with your clients will do wonders for your working relationship.

Take this as an example: you're working on the front-end for your client's exciting new ecommerce endeavour. You have all the images, originals and files backed up on your desktop computer and the site is going really well. During a meeting with your client he/she happens to mention a hard-copy brochure their internal marketing people are developing. As if by magic, a couple of weeks later a CD-ROM arrives on their doorstep complete with high resolution versions of all the images you've used on the site. A note accompanies it which reads .

"Hi, you mentioned a hard-copy brochure you were working on and I wanted to provide you with large-scale copies of the graphics I've used on the site. Hopefully you'll be able to make use of some in your brochure."

Your client is heartily impressed, and remarks to his colleagues and friends how very helpful and considerate his Web designers are. Meanwhile, in your office, you lay back in your chair drinking your 7th cup of coffee that morning, safe in the knowledge this happy customer will send several referrals your way.

7). Honour Your Promises

It's possible this is the most important point in this article. The simple message: when you promise something, deliver. The most common example here is project delivery dates. Clients don't like to be disappointed. Sometimes, something may not get done, or you might miss a deadline through no fault of your own. Projects can be late, technology can fail and sub-contractors don't always deliver on time. In this case a quick apology and assurance it'll be ready ASAP wouldn't go amiss.

Conclusion

Customer service, like any aspect of business, is a practiced art that takes time and effort to master. All you need to do to achieve this is to stop and switch roles with the customer. What would you want from your business if you were the client? How would you want to be treated? Treat your customers like your friends and they'll always come back.

Objective Of The Study

The main objective of this study is to carry on brief study on

“Customer satisfaction survey on insurance products of LIC Other objectives of this project are as follows:

To identify the insurance needs of the Indian population with respect to their emotional, physical and financial conditions.

Comparative study of various insurance players in the market

To study the varied reasons of availing life insurance plans

To clearly understand the rationale behind the investment in policies of LIC and private sector insurance companies.

To test the awareness of customers on various aspects of life insurance policies offered by LIC and other private sector insurance companies and find whether there is any relation between them.

The prime objective of the study is to find out the level of satisfaction of a customer (policy holders or beneficiary) so far as the settlement of claims.

To find out the procedure of claim policy holder or the beneficiary.

Scope and Rationale of Training

Scope of the training :-

It has bring me in a environment which help me to generate practicle knowledge about the industry.

This help me to understand the working of the company and its present status in comparision of others .

Create my interaction with the superiors and employees of the company .

Help in building a informal relation with the company’s employees.

Gained knowledge about company policy for general public .

Help in learning visual inspection and deal in companies product .

Rationale of the training :-

Undergraduates have an opportunity to expose themselves in working’s environment of their field of profession respectively.

For obtaining working’s experience in the industry which is relating to their field of current study.

Using knowledge which is obtained from industrial training for their study after finishingtraining and continuing study at university afterwards.

Training them to be capable in communicat ion and interact ion between workers and superior.

Training them to be able to prepare a technical report which is related to industrial training they do.

Cultivating them to work as a team.

Learning to be professional behavior respectively.

Company profile

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 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 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, 100 divisional offices, 7 zonal offices and the Corporate office. LIC’s Wide Area Network covers 100 divisional 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 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.

Founder of the company :- Bipin Behari Dasgupta and others

Mission and vision

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."

Competitors of the company

Copanies subsidaries :-

LIC owns the following subsidiaries:

Life Insurance Corporation of India International: This is a joint venture offshore company

promoted by LIC which commenced operations in July, 1989 with the objectives of offering

US$ denominated policies to cater to the insurance needs of NRI’s and providing insurance

services to holders of LIC policies currently residing in the Gulf. LIC International operates in

all GCC countries.

LIC Nepal: A joint venture company formed in 2001 with the Vishal Group of Industries,

Nepal.

LIC Lanka: A joint venture company formed in 2003 with the Bartleet Group of Companies,

Sri Lanka.

LIC Housing Finance: Incorporated in 19 June 1989, its main objective is to provide long

term finance for construction or purchase of houses or apartments. It has a Dubai office.

LICHFL Care Homes: A wholly owned subsidiary of LIC Housing Finance, it builds and

operates "Assisted Community Living Centres" for senior citizens.

IMPORTANT MILESTONES :-

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.

1. This legislation was lead to met requirement of insurance policy act like  2. statutory requirement of equity capital for companies carrying on life insurance business3. ceiling on share holdings in such companies4. stricter control on investments 5. Submission of periodical returns relating to investments and other such information to the

controller.

6. Malpractices and Mismanagement had crept into the management of several of these companies. More than 50 private insurance companies had been liquidated or swindled the policyholders.

7. There were complaints of different types of malpractices by many insurance companies like falsification and denial of claims, and inter-locking of funds.

8. To protect the public, the government nationalized the insurance industry. On January 19, 1956, the management of the life insurance business of 245 Indian

9. and foreign insurers and provident insurance societies then operating in India were taken over by the central government.

10. By 1956, there were 154 life insurance companies in India.

Company structure

Chairman

Managing Director Executives Directors Chiefs

Zonal Managers

Regional Managers

Divisional Managers

100 Seniors Divisional Managers

Marketing Managers

Sales Managers

Senior Branch Managers (Head of the Branch)

Assistant Branch Managers Sells Development

Different Agent

PUBLIC RELATION DEPARTMENTThe Public Relation Department in LIC is divided into three majorcategories. Namely:

1. Communication Department2. Crisis Management Department3. Publicity Department

COMMUNICATION DEPARTMENT

The PRO of this Department is an external PR.

He looks after:-

· Arranging press conferences, press releases and is in constant contactwith the media.

· He is also responsible for monitoring the overseas communications.

· The Communication Department PRO has to make arrangements for the guests and their overall honors. The conversations with the guests are directly done by the Communication Department PRO.

· The PRO from this department should always keep a close eye on the latest happenings in the market. Any social issue at any area is a news to be worked out for him.

· He reports directly to the Chief PRO of the company.

· The Press conference usually includes the CEO of the company, the Chief PRO and the Communication Dept. PRO.

· If the case is of crisis, then only is the Crisis management Dept PRO present for the Press conference.

· Since LIC is closely related with the Public Sector, the Communication Dept. PRO has to also be in a close contact with the government officials.

· He also has to motivate the employees in his department for constantprogress in the strategies for communication. In short, the communication Department PRO ensures that there is no communication gap between the company and the external concerned bodies.(recent press releases of LIC issued by Communication Department PRO enclosed)….

CRISIS MANAGEMENT DEPARTMENT

The PRO in this department is an internal one. From the overall history of LIC, it is seen that the company has never been into any major crisis. This itself is one of the best achievements.He is answerable to the Chief Public Relation Officer.The PRO from crisis management, though is here to handle crisis, he has been assigned many other internal responsibilities.

· Motivating the lower employees, sales executives and sales and marketing employees.

· Building up a smooth communication between the Blue Collar and the White Collar.

· Arranging small workshops for all the employees.

· He also has to know the issues going within the other departments so that these issues are solved before they create crisis. The strategy used by the PR here for crisis management is:-

“Wash the utensil before having food in it.”

Thus all the employees right from the day of joining are kept in close contact with the Crisis Management Dept. And regular workshops help to restrict cases like Corruption. With a company so closely associated with the government, restricting such practices is very difficult task.

PUBLICITY DEPARTMENT

The PRO of the publicity Department is an External PR. This department was formed due to the fall of sales in the 1999. This fall was due to the emergence of the foreign insurance companies and their advertising strategies. Initially, the ads shown by LIC always said “no worry even after death”. All the ads portrayed death. The other insurance companies came up with the idea that insurance is for happy life. Thus the sales of LIC went down as people liked the idea of Life more than Death.

Hence a separate publicity department was formed which worked only for publicity strategies. Initially it was looked up by the Communication Department. Today the publicity department PRO has to see to it that all the ads running are creating effect. The PRO is the one who along with the Marketing departmentlooks after the strategies for publicity. He is also to carry out various campaigns. The very recent campaign is known as “Zindagi Express”. The Zindagi Express is a term that has been associated to the life of LIC.Just as humans celebrate their 50 years of life, even LIC is celebrating its life. and when any person has done a lot in his life, he is capable of writing an Autobiography. Thus Zindagi Express is an Autobiography by LIC. They had started this unique campaign of auto biography from Delhi and will cover the entire nation and end up in Delhi again. During this journey they explain what all LIC has done for publics and what all it still intends to do.

Adress of LIC of India

LIC Of INDIA Main Office

11/854 & 5/842, Jivan Prakash Building, Ground Floor, Tilak Road, Near S V College, Relief Road, Ahmedabad - 380001 |

Call: +(91)-(79)-27456848

LIC of INDIA Central Office

4th Floor, West Wing, Yogakshema, Jeevan Bhima Marg, P B No 19953, Nariman Point, Mumbai - 400021 |

Call: +(91)-(22)-22022151

TRAINING METHODOLOGY

Secondary data is collected from various bibliographical sources such as journals, novels, magazines, publications and various websites including the official website of LIC and various other company websites. The published research reports and market studies also helped the researcher to guage into the problem.

(This research is fully based on secondary data )

TRAINING DESIGN

The design of the training program can be undertaken only when a clear training objective has been produced. The training objective clears what goal has to be achieved by the end of training program i.e. what the trainees are expected to be able to do at the end of their training. Training objectives assist trainers to design the training program.

The trainer – Before starting a training program, a trainer analyzes his technical, interpersonal, judgmental skills in order to deliver quality content to trainers.

The trainees – A good training design requires close scrutiny of the trainees and their profiles. Age, experience, needs and expectations of the trainees are some of the important factors that affect training design.

Training climate – A good training climate comprises of ambience, tone, feelings, positive perception for training program, etc. Therefore, when the climate is favorable nothing goes wrong but when the climate is unfavorable, almost everything goes wrong.

Trainees’ learning style – the learning style, age, experience, educational background of trainees must be kept in mind in order to get the right pitch to the design of the program.

Training strategies – Once the training objective has been identified, the trainer translates it into specific training Training topics areas and modules. The trainer prepares the priority list of about what must be included, what could be included.

– After formulating a strategy, trainer decides upon the content to be delivered. Trainers break the content into headings, topics, ad modules. These topics and modules are then classified into information, knowledge, skills, and attitudes.

Sequence the contents – Contents are then sequenced in a following manner: - From simple to complex

• Topics are arranged in terms of their relative importance

• From known to unknown

• From specific to general

• Dependent relationship

Training tactics – Once the objectives and the strategy of the training program becomes clear, trainer comes in the position to select most appropriate tactics or methods or techniques. The method selection depends on the following factors:

• Trainees’ background

• Time allocated

• Style preference of trainer

• Level of competence of trainer

• Availability of facilities and resources, etc

Data Analysis and Interpretation

CUSTOMERS PRECEPTION TOWARDSSERVICES

LIC HDFC ICICI OTHERS

50% 30% 20% 10%

( LIC IS HAVE MORE CUSTOMERS RATHER THAN OTHERS) CUSTOMERS RELATIONSHIP DEPARTMENTS

LIC HDFC ICICI OTHERS

40 % 30 % 20% 10%

(IN LIC CRM DEAPARMENTS MOST TO SATISFIED THE CUSTOMERS)

PUBLIC RELATIONS

LIC HDFC ICICI OTHERS

40% 30% 20% 10%

IN LIC MOSTLY CONCENTRATE ON PUBLIC RELATIONS

LIC POLICIES AND BETTER

PLANS

LIC HDFC ICICI OTHER

40% 30% 20% 10%

LIC IS ONE OF FIRST INSURANCE COMPANY WHICH PROVIDE MORE SERVICES

Project Analysis

The Positive side of LIC as well as Negative side of LIC. I encourage other readers to correct me if I am wrong and also add light to any point that I may have missed.

First let’s talk about the Positive side of LIC

1. LIC is owned by the government and therefore it is the Only company besides the PPF that has the sovereign guarantee of the govt. of India. It is a different story that today LIC hasbecome so powerful that the govt. leans on LIC every time that the Stock Market crashes. Imagine having an Asset base of over Rs 6 Lac Crore. . That’s a 14 digit number! No company in India can boast of such figures. Mind boggling.

2. LIC is the only Life Insurance Company making profits. Most of the Private Insurers including the self proclaimed market leaders like ICICI and Bajaj Allianz are booking heavy losses.Check IRDA website in the Annual Report column. The point is that if an insurance company makes losses year over year, then how will they manage to pay the Claim amount? Afterall no Insurance company is here to do charity business.

3. When it comes to paying claims, again LIC is Number One with the claims settlement ratio of more than 99%. Private Insurers cannot match LIC’s ability on claims settlement. Again, please visit IrDA’s website to see the claims settlement performance of various companies.

4. LIC has the world’s largest sales force, yes over 10 lac agents and now universities in western countries are trying to study how a company managed to appoint such a large sales force. A sales force of over 1 million! Truly a remarkable achievement.

5. Many people argue that LIC has not been able to penetrate the market as it has insured only 15% of the population. My point is, in a poor country like India where there are so many peopleLiving below the poverty line, so many people who die of starvation, so many people who don’t have access to basic medication, so many people who don’t have basic necessities of life like food, shelter, education and clothing. Will such a person first feed his children or buy Insurance?

Lets not forget that a majority of the Indian population is poor and a substantial percentage is living below the poverty line. At a personal level i feel that LIC has done a satisfactory job of insuring people.

Result and Findings

Children’s policyKomal Jeevan - Plan No. 159Children Deferred - Plan no.41Jeevan Kishore - Plan no.102Jeevan Chhaya - Plan no.103Marriage Endowment/Educational Annuity - Plan No. 90Jeevan Anurag - Plan no.168

Endowment Policy

Endowment with Profits - Plan no.14 Limited Payment EndowmentWith Profits - Plan no.48Jeevan Mitra - Plan no.88New JanaRaksha Policy - Plan no.91Jeevan Anand Plan no. 149Jeevan Mitra Triple Cover - Plan no.133

Group Insurance Policy

Janashree Bima YojanaGroup Insurance Scheme in lieu of EDLIGroup (Term) Insurance SchemeGroup Savings Linked Insurance SchemeGroup Superannuation SchemeGroup Mortgage Redemption Assurance Scheme

Joint Life Policy

Jeevan Saathi - Plan no.89

Money Back Policy

Money Back with Profit - Plan no.75New Money Back - Plan no.93Jeevan Surabhi 15 yrs - Plan no.106Jeevan Surabhi 20 yrs - Plan no.107Jeevan Surabhi 25 yrs - Plan no.108Jeevan Bharati Plan No 160Jeevan Samriddhi Plan No 154, 155, 156 157Bima Bachat- Plan no.175

Pension Plans or Annuities

New Jeevan Dhara - Plan no.148New Jeevan Suraksha Plan no. 147Jeevan Akshay II Plan no. 163Jeevan Nidhi Plan no. 169Jeevan Akshay V Plan no. 183

Special Plans

Term Assurance - Plan no.43Mortgage Redemption - Plan no.52Jeevan Aadhar - Plan no.114Market Plus - Plan No 181Jeevan Vishwas Plan No. 136Jeevan Saral Plan No. 165Jeevan Pramukh Plan No. 167Bima Nivesh 2005 Plan No 171Money Plus-Plan No 180

Term Policy

Convertible Term Assurance - Plan no.58New Bima KiranTerm AssuranceAnmol Jeevan I Plan No- 164Amulya Jeevan-Plan No-177Service QualityYour Policy Bond And Its SafetyYour Policy NumberPolicy ConditionsAlterations In PolicyIf Your Policy Is LostYour Contact Address – Keep Us Posted Without Fail

Admission Of AgeNominationAssignmentWhen To Pay The PremiumsGrace Period For Premium PaymentHow And Where To Pay The PremiumsPolicy Status – Where AvailableRevival Of Lapsed PoliciesAvailing Loans On PoliciesSurrender ValueMaturity, Survival Benefits, Disability And Death ClaimsPolicies Under Salary Savings Scheme

Helpline

CONCLUSIONS

After Finding’s we can see about LIC features and his The tendency to take the expedient approach and focus on the far right of the LIC spectrum, Peacetime Contingency Operations and conduct training as usual, while briefing that the LIC block has been checked, will lead us to a possibly fatal false sense of security. Instinctive behavior and ingrained training must be adjusted to fit new circumstances. STXs must be developed locally or borrowed from units who have already been through the training.The probability of becoming involved in a LIC operation is high. The potential to attract international attention, even with limited forces, is also great. Units have demonstrated that with a balanced training focus and proper preparation, many pitfalls outlined above can be avoided.

LIC is not conventional warfare. This is critical for the counterinsurgent to understand. The insurgent’s violent and coercive strategy is applied so as to achieve political, civil, military and psychological results. Hence, the counterinsurgent must counter all of these strategic elements individually. In addition, the target of the insurgent’s violence and coercion is the population.

This is because the population is the centre of gravity in LIC. Therefore the counterinsurgent must also focus on the population to be successful. In terms of military principles in counterinsurgency, doctrinal precision, professionalism, independence, initiative, force precision, restraint, combined arms, precision engagement, joint force, effective population based intelligence, integrated communications, a civil affairs approach and high levels of training are critical. So all policies and plan toally satisfied the customers.

Limitation of the Training

Resources limited: As the study is conducted in individual groups and no additional help has been

provided by the company in terms of financial support hence the best probable study is conducted in

the given small resource pellets.

Geographical: The study is relevant only under the geographical inbounds of area where the training

is conducted, i.e. the urban settlements. No rural visits are scheduled for this study.

Time constraints: The time required to conduct the training is limited to 45 days only which is I

think a short duration for conducting the research .

Monetary constraints: As there is no stipend which is provided by the company, it does not lead to

any motivation. This study is totally about meeting people, which involves moving within the city,

which certainly requires money.

Errors: There are always some chances of errors creeping in such as non response errors, biased

response errors etc. Some errors might also creep in during interpretation.

SUGGESSIONS AND RECOMMENDATIONS

TO CONVERT ALL NEGATIVE POINT IN POSITIVE TO SIT IN FIRST LEVEL IN INSURANCE AREAS FOREVER AND IMPROVE Q.D.C

# NOW THE NEGATIVE POINTS OF LIC #

1. The Administrative staff in LIC is in deep slumber. Try writing a complaint to them and they wont even bother to reply back. If you ask the Branch Manager for the complaints book, he probably wont have it in place. If an Agent complains against any staff, then the Agent is black listed and next time onwards his work isnot done.

2. In order to show a better performance & achieve branch Targets, Agents are motivated by the Managers to split the policies. This not only adds to the inconvinience of the policyholders but it also increases the expenses of LIC. Competitions for Agents are held with Prizes being offered on the number of policies sold and not on the number of lives insured.

Therefore many Agents are tempted to split the policies in order to get better prizes. However if an agent wants the forms or sales literature, most of the time its out of stock. But surprisingly just a week before any scheme is about to close, the office is flooded with forms & sales literature. This is very disturbing.

3, As I earlier said, LIC is lacking in Effective Leadership in recent times. Managers having designations like Marketing Manager or Sales Manager donot have the capability to motivate an audience at a meeting. Yes this is true even in a city like Mumbai. Even the Senior level managers cannot make effective presentations or design a sales strategy. Their only mantra at an Agents meeting is "Friends, bring more policies!’. If you ask them how to bring more policies, they wont know. Its a pity ! “

4. Though LIC has more than 2000 branches, they are not systematically located. In Mumbai’s Fort area, LIC has more than 20 branches within a radius of 1.5kms Whats the use ? In the suburbs where most of the people reside, there are no branches at all. LIC has no branches in Bandra East, Khar East & West, Santacruz East, Vile Parle East, Andheri West, Jogeshwari West, Mahim, Matunga, etc. If LIC gives a thought to systematic relocation of its offices, it will immensly help the policyholders.

5. Even though LIC claims to have taken several initiatives in the IT sector, policyholders still face problems in revival of their policies, payment of premium in several branches, change of mode, change of address, etc. The After-sales policy Services department needs to be revamped. Policyholders feel that LIC agents are humble while selling a policy and thereafter they fail to provide any service to the client. The truth is that LIC is so weak in policy services department, that even a good agent finds it difficult to get the work done from the administrative staff.

To sum up, i would say that LIC will never cheat a Policyholder in payment of claim, but at the same time everyone will agree that LIC is not responsive to the needs of the customer. If you have purchased an LIC policies then dont forget to pay the premium on time, and when your policy gets matured LIC will honestly pay your Maturity amount on time.

The employees are sometimes rude in their behaviour with the Policyholder. If a claim cheques is handed over by a courteous and smiling employee of LIC, it will enhance the image of LIC in the mind of the policyholder.

Today LIC is not just an Insurance Company, LIC is a Movement, LIC is a Cult, LIC is a Religion. Imagine 10 lac agents and 1 lac employees serving 16 crore policyholders in India. You cannot deny that LIC has become the way of life in India. Daily you can hear someone or the other talking of LIC in local trains, at Fish markets, at restaurants, on News Channels, in your own offices, etc.

As i earlier said, LIC has started lacking in effective leadership. If a company like LIC starts sponsoring irrelevant awards like Zee Cine awards which it had done 2 years ago, then it will send the wrong message in the minds of the policyholders. Imagine India’s most famous institution sponsoring a Cine Awards function stating that it was done to increase the brand awareness of LIC. That sounded like a big joke. It is time that the top level officials of LIC come out of their air-conditioned cabins and travel by public transport for sometime in order to feel the pulse of the common man.

Why LIC is trusted brand of India?

1.As a Govt of India owned Company, LIC is 51 + years old in the field of life insurance and money management. LIC's Life Fund size as on day is more than Rs 5 Lakh Thousand Crores !

2. Any LIC policyholder or the nominee will vouch for the best claims settlement from LIC. Perhaps, this is the only institution where you as a policyholder are virtually chased till such time your claim cheques is handed over to you !

3. LIC has won `NDTV Profit Leadership Award 2007 under Life Insurance Category', `Outlook Money Award 2007 as the best Life Insurer', `CNBC Awaaz Consumer Award 2007 as the best Life Insurance Company', `Golden Peacock Award for excellence in Corporate Governence2007', `Web 18 Genius of the Web Award 2007 and many more'.

4. LIC adjudged No.1 Trusted Service Brand for the 4th successive year by ET Brand Equity Survey.

5. LIC has been adjudged Superbrand India for 2004-06 and Reader's Digest `Trusted Brand' Asia 2007.

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

7. This is one of the very few institutions that pays ex-gratia interest on pending maturity claims !

8. More than 2050 LIC branches all over India are connected together to serve you. You can pay your premium anywhere in the country.

9. During its long existence, LIC has kept on updating its portfolio by bringing in new plans depending on public requirement. More than 50 of them are most popular and can be customized to meet any of your requirements. LIC ULIPs have become extremely popular due to the returns they offer. Money PluslatestLIC Unit Linked Plan is a case in point.

10. All LIC Plans come with Sovereign Guarantee i.e., Govt of India Guarantee regarding repayment. Infact, as of now, only LIC plans enjoy this Govt Guarantee. Beneficiary for this Sovereign Guarantee is you and you alone as the policyholder/ would-be policyholder.

11. All LIC plans are characterized by low premium, high life insurance coverage and a vast package of benefits offered by them. Add to this package, section 80C benefit and section 10(10D) benefit on the maturity proceeds, you will find investment on LIC plans one of the most coveted investment optionsavailable to you.

12.Premium paid under Key-Man Insurance plan is a recognized business expense under section 37(I) of the Income-Tax Act. For companies making profits, this is a very good incentive indeed.

13. Through Employer-Employee Insurance scheme, you can recognize the worth of your most valuable employees whose absence you can ill afford to loose.

14. Entire contribution to LIC Group Gratuity Scheme is a recognized business expense in the hands of the employer. In addition, through this scheme, the employer can transfer his gratuity liability to the corporation and fund the same under cash accumulation scheme. The most popular among all the companies.

15. LIC is declaring quite an impressive bonus (profits) on all its with-profits policies every year. Extra attraction under LIC Bonus is

(a) it is calculated every year on the insured amount and not on the premium paid and

(b) entire bonus received along with insured amount either by you on maturity of your policy(ies) or by your nominee in your absence during the currency of your policy(ies) is free from income-tax under section 10(10D) of the Income-tax Act.

16. On most of the LIC plans, you can borrow to take care of your immediate monetary requirements. None of the policy benefits get affected as a result of borrowal. Infact, policy loans offer one of the most attractive investment opportunities.

17. You can pay your premium 3 years in advance at 5% discount. Chief attractions of this advance payment of premium are (a) there is no possibility of your overlooking your premium payment and getting your policy(ies) lapsed wherever you are in the world and (b) you will be earning 5% tax-freeinterest on the unutilized portion of the amount left with LIC after apportioning the regular installment.

18. Most of the LIC plans come with Riders to take care of Total and Permanent Disablement due to Accident and some of the most dread diseases that may result in loss of income.

19. LIC pension plans that guarantee you life pension are extremely popular. You can park your hard earned money safely with the corporation and enjoy pension as long as you are alive. Due to these reasons and lot more, LIC should be your obvious choice for all your life insurance requirements.

LIC is India’s most trusted brand, INSURING LIVES AND ENSURING SMILES from more than 50 Years.

SUPER BRAND & MOST TRUSTED SERVICE BRAND OF INDIA. BEST ITUSER IN INDIA (NASSCOM – 2003).

Largest Institutional Investor in India and Second largest in Asiaamong insurers.(Source: Asian Investor)

LIC - An Institution Builder promoting many financial and insurance institutes like NSE, NCDEX, LIC Mutual Fund, Stock Holding Corporation of India National Insurance Academy, Insurance Institute of India etc. LIC is the largest life insurer of India Asset value as on 31.3.2004: 3,673,598.4 mn (INR).Offers over 45 plans to cover your life at various stages Over 160 million customers and 1.1 million agents. It has underwritten more than 160 million policies. 2,048 branch offices (all computerized) of which 2019 are networked”From all above we can say our money is safe and secure with assured returns.”

Bibliography

Important websites – www.google.com(recummented) www.licindia.comMagazine Yogkshem –Lic Magazine Outlook Express Business today Finance & Banking Money OutlookNews Paper Business standard Times of India Economic times

Hindustan times

APPENDIX

ANNEXURE – I

QUESSTIONAIRE :-

“ A SURVEY IS CONDUCTED IN INSURANCE COMPANY”

Dear Sir/ Madam,

I am a student of JAYOTI VIDYAPEETH WOMEN’S UNIVERSITY, JAIPUR . As part of the

requirements for my Bachelor Degree in Business Administration I am required to do a research based

project. Kindly spend a few minutes of your valuable time and fill in this questionnaire. All the

information provided by you will be used only for academic purposes and will be strictly confidential.

Have you heard of any of these insurance companies?

o LIC

o Birla Sun Life

o Aviva Life Insurance

o Bajaj Allianz

o HDFC Standard

o Religare Life Insurance

o ICICI Prudential

o ING Vysya

o Bharti Axa

Do you own a life insurance policy/ investment plan in your name?

o Yes

o No

If yes which company/ company’s insurance policies do you hold?

o LIC

o Birla Sun Life

o Aviva Life Insurance

o Bajaj Allianz

o HDFC Standard

o Religare Life Insurance

o ICICI Prudential

o ING Vysya

o Bharti Axa

Which company you prefer? Rank it according to your preference.

o LIC

o Birla Sun Life

o Aviva Life Insurance

o Bajaj Allianz

o HDFC Standard

o Religare Life Insurance

o ICICI Prudential

o ING Vysya

o Bharti AXA

What is the approximate premium paid by you annually (in Rupees)

o Rs. 10001 – Rs. 15000

o Rs. 15001 – Rs. 25000

o Rs. 25001 – Rs. 50000

o Rs. 50001 – Rs. 60000

o Rs. 60001 – Rs. 80000

o Rs. 80001 – Rs. 100000

o More than Rs. 100000 ( specify premium)

If you hold LIC policy.how do you rate the quality of service provided by LIC?

o Excellent

o Good

o Fair

o Bad

o Extremely bad

Are you aware of various plans offered by insurance companies?

o Yes

o No

Which company would you think is safer and have less risk?

o LIC

o Birla Sun Life

o Aviva Life Insurance

o Bajaj Allianz

o HDFC Standard

o Religare Life Insurance

o ICICI Prudential

o ING Vysya

o Bharti Axa

What motivates you to purchase insurance/ investment plans?

o Advertisements

o High Returns

o Advice from friends

o Family responsibilities

o Good will

According to your knowledge which company provide highest rate of return?

o LIC

o Birla Sun Life

o Aviva Life Insurance

o Bajaj Allianz

o HDFC Standard

o Religare Life Insurance

o ICICI Prudential

o ING Vysya

o Bharti Axa

Out of these which factor influence you most to go for a specific insurance company

o Tax benefit

o Flexibility

o Services provided

o Risk cover

o Charges

o Rate of return

o Good will

In which kind of company would you prefer to make a purchase of insurance?

o Government owned company

o Public Limited Company

o Private Company

o Foreign based company

How do you rate LIC over other companies

o Excellent

o Good

o Fair

o Bad

o Extremely bad

Personal Details:

Name:

Gender:

o Male

o Female

Age group:

o 18 – 25 years

o 26 – 35 years

o 36 – 49 years

o 50 – 60 years

o Above 60 years

o

Profile of respondent:

o Student

o Housewife

o Working Professional

o Business

o Self – Employed

o Government Service employee