A PROJECT REPORT

ON
LIC OF INDIA
SUBMITTED TO
THE UNIVERSITY OF MUMBAI
IN PARTIAL FULFILMENT FOR THE AWARD OF
THE DEGREEOF BACHLOR OF COMMERCE
(BANKING AND INSURANCE)
SEMESTER VI 2015-2016
BY ROSHNI DIXIT JANI
(SEAT NO. 1150671)

THE SIA COLLEGE OF HIGHER EDUCATION

ACADEMIC YEAR (2015-2016)

DECLARATION
1

I here by declare that this project titled LIC OF INDIA submitted is based on
actual work carried out by the guidance and supervision of Prof.BABITA
NAGDEV
Any reference to work done by any other person or institution or any material
obtained from other sources has been duly citied and reference made.
It is further stated that this work is not submitted anywhere else for any
examination.

SIGNATURE OF STUDENT
(ROSHNI.D. JANI)
(SEATNO.1150671)

ACKNOWLEDGMENT
2

I am thankful to Prof .Babita Nagdev for the guidance in successful

completion of this project.

I am indebted our principal Dr.Padmaja Arvind and librarian Mrs.BhartiRao

for their unconditional support and motivation.

Last, but not the least I cannot forget my parents and friends whose constant
encouragement and support made this task a happy job.

The SIA College Of Higher Education.

P88, MIDC Residential Area Dombivli Gymkhana Road,

Near BalajiMandir, Dombivli (East).421 203.
Email:sia.college@yahoo.com

CERTIFICATE
This is to certify that,
Mrs.ROSHNI DIXIT JANI
Student of BCOM (Banking and Insurance VI) 2015-2016
Seat No.-1150671 has successfully completed his Project
Work on LIC OF INDIA.Under the guidance of PROF. BABITA NAGDEV as
per Mumbai University syllabus.

COURSE CO-ORDINATOR

PROJECT GUIDE

EXTERNAL EXAMINER

PRINCIPAL

INDEX
4

Chapte
r no.

Particulars

INTRODUCTION

LIC

RESEARCH METHODOLOGY

4
5

DATA ANALYSIS AND

INTERPRETETION
CONCLUSION

BIBILIOGRAPHY

Pg.no.

Background of the study

The present study entitled as LIC OF INDIA.

Statement of the problem

WHETHER LIC OF INDIA are popular among customer are not?

Objectives of the study

To understand the LIC OF INDIA
To under stand the consumer behaviour in respect to the services offered by the
different bank.

CHAPTER: 1
INTRODUCTION

INTRODUCTION
Life Insurance Corporation (India) (LIC) is an Indian state-owned insurance
group and investment company headquartered in Mumbai. It is the largest
insurance company in India with an estimated asset value of 1560482 crore
(US$230 billion).[2] As of 2013 it had total life fund of Rs.1433103.14 crore
with total value of policies sold of 367.82 lakh that year.[citation needed]
The Life Insurance Corporation of India was founded in 1956 when the
Parliament of India passed the Life Insurance of India Act that nationalised the
private insurance industry in India. Over 245 insurance companies and
provident societies were merged to create the state owned Life Insurance
Corporation.

COMPANY PROFILE

Type : State-owned enterprise Private company

Industry : Financial services
Founded : 1 September 1956
Headquarters : Mumbai, India
Key People : S.K Roy (Chairman), S.B Mainak (DManaging Director),
N.R.Guha (Managing Director), V.K Sharma (Managing Director),
UshaSangwan (Managing Director)
Products : Life insurance, health insurance, investment management, mutual
fund
Revenue : Decrease US$ 88.400 billion (2015)
Profit : Increase US$ 9.257 billion (2015)
Total assets : 1560482 crore (US$230 billion) (2013)
Owner : Government of India
Number of employees : 119,767 (Mar 2012)[1]
Subsidiaries : LIC Housing Finance
LIC Pension Fund Ltd.
LIC International
LIC Cards Services
LIC Nomura Mutual Fund
Website

www.licindia.in

CHAPTER 2

10

What is life insurance?

Life insurance is a contract that pledges payment of an amount to the person
assured (or his nominee) on the happening of the event insured against.The
contract is valid for payment of the insured amount during:The date of maturity,
or Specified dates at periodic intervals, or Unfortunate death, if it occurs earlier.
Among other things, the contract also provides for the payment of premium
periodically to the Corporation by the policyholder. Life insurance is universally
acknowledged to be an institution, which eliminates 'risk', substituting certainty
for uncertainty and comes to the timely aid of the family in the unfortunate
event of death of the breadwinner.
By and large, life insurance is civilisation's partial solution to the problems
caused by death. Life insurance, in short, is concerned with two hazards that
stand across the life-path of every person:That of dying prematurely leaving a
dependent family to fend for itself.That of living till old age without visible
means of support.

11

LIC SUBSIDIARIES :
Unlike provision for private players in the insurance sector. The LIC Act
provide for setting up subsidiaries through policy holders fund. It is due to the
LIC act and that LIC of india has a number of subsidiaries which help it in
leveraging its potential to the maximum, providing an enhanced set of
diversified service to its customers. These subsidiaries include LIC international
, LIC Nepal , LIC Lanka , LIC Housing Finance and LIC Mutual Fund.

LIC INTERNATIONAL
This is joint venture offshore company promoted by LIC which commenced
operations in july, 1989 with the objective offering US dollar denominated
policies to cater to the insurance needs of NR is and providing insurance
services to holders of LIC policies currently residing in the Gulf. LIC
international operates in all GCC countries.

LIC HOUSING FINANCE LTD

The company is recognized by national housing bank listed on the national
stock exchange (NSE) & Bombay stock exchange limited (BSE). LIC housing
finance limited is one of the largest hosing finace company in india.
Incorporated on 19th june 1989 under the company act, 1956, the company was
promoted by LIC of india and went public in 1994.

Life Insurance Vs. Other Savings

Contract Of Insurance: A contract of insurance is a contract of utmost good faith
technically known as uberrima fides. The doctrine of disclosing all material
facts is embodied in this important principle, which applies to all forms of
insurance.At the time of taking a policy, policyholder should ensure that all
questions in the proposal form are correctly answered. Any misrepresentation,
non-disclosure or fraud in any document leading to the acceptance of the risk
would render the insurance contract null and void.
Protection: Savings through life insurance guarantee full protection against risk
of death of the saver. Also, in case of demise, life insurance assures payment of
the entire amount assured (with bonuses wherever applicable) whereas in other
savings schemes, only the amount saved (with interest) is payable.
12

Aid To Thrift: Life insurance encourages 'thrift'. It allows long-term savings

since payments can be made effortlessly because of the 'easy instalment' facility
built into the scheme. (Premium payment for insurance is either monthly,
quarterly, half yearly or yearly).
For example: The Salary Saving Scheme popularly known as SSS, provides a
convenient method of paying premium each month by deduction from one's
salary.
In this case the employer directly pays the deducted premium to LIC. The
Salary Saving Scheme is ideal for any institution or establishment subject to
specified terms and conditions.
Liquidity: In case of insurance, it is easy to acquire loans on the sole security of
any policy that has acquired loan value. Besides, a life insurance policy is also
generally accepted as security, even for a commercial loan.
Tax Relief: Life Insurance is the best way to enjoy tax deductions on income tax
and wealth tax. This is available for amounts paid by way of premium for life
insurance subject to income tax rates in for Assessees can also avail of
provisions in the law for tax relief. In such cases the assured in effect pays a
lower premium for insurance than otherwise.
Money When You Need It: A policy that has a suitable insurance plan or a
combination of different plans can be effectively used to meet certain monetary
needs that may arise from time-to-time.
Children's education, start-in-life or marriage provision or even periodical needs
for cash over a stretch of time can be less stressful with the help of these
policies.
Alternatively, policy money can be made available at the time of one's
retirement from service and used for any specific purpose, such as, purchase of
a house or for other investments. Also, loans are granted to policyholders for
house building or for purchase of flats (subject to certain conditions).
Who Can Buy A Policy?
Any person who has attained majority and is eligible to enter into a valid
contract can insure himself/herself and those in whom he/she has insurable
interest. Policies can also be taken, subject to certain conditions, on the life of
13

one's spouse or children. While underwriting proposals, certain factors such as

the policyholders state of health, the proponent's income and other relevant
factors are considered by the Corporation.
Insurance For Women: Prior to nationalisation (1956), many private insurance
companies would offer insurance to female lives with some extra premium or
on restrictive conditions. However, after nationalisation of life insurance, the
terms under which life insurance is granted to female lives have been reviewed
from time-to-time. At present, women who work and earn an income are treated
at par with men. In other cases, a restrictive clause is imposed, only if the age of
the female is up to 30 years and if she does not have an income attracting
Income Tax.
Medical And Non-Medical Schemes : Life insurance is normally offered after a
medical examination of the life to be assured. However, to facilitate greater
spread of insurance and also to avoid inconvenience, LIC has been extending
insurance cover without any medical examination, subject to certain conditions.
With Profit And Without Profit Plans: An insurance policy can be 'with' or
'without' profit. In the former, bonuses disclosed, if any, after periodical
valuations are allotted to the policy and are payable along with the contracted
amount.In 'without' profit plan the contracted amount is paid without any
addition. The premium rate charged for a 'with' profit policy is therefore higher
than for a 'without' profit policy.
Keyman Insurance: Keyman insurance is taken by a business firm on the life of
key employee(s) to protect the firm against financial losses, which may occur
due to the premature demise of the Keyman.

14

OBJECTIVE

Spread Life Insurance widely and in particular to the rural areas and to the
socially and economically backward classes with a view to reaching all
insurable persons in the country and providing them adequate financial cover
against death at a reasonable cost.
Maximize mobilization of people's savings by making insurance-linked savings
adequately attractive. Bear in mind, in the investment of funds, the primary
obligation to its policyholders, whose money it holds in trust, without losing
sight of the interest of the community as a whole; the funds to be deployed to
the best advantage of the investors as well as the community as a whole,
keeping in view national priorities and obligations of attractive return.
Conduct business with utmost economy and with the full realization that the
moneys belong to the policyholders. Act as trustees of the insured public in their
individual and collective capacities.
Meet the various life insurance needs of the community that would arise in the
changing social and economic environment. Involve all people working in the
Corporation to the best of their capability in furthering the interests of the
insured public by providing efficient service with courtesy.
Promote amongst all agents and employees of the Corporation a sense of
participation, pride and job satisfaction through discharge of their duties with
dedication towards achievement of Corporate Objective.

15

MISSION / VISSION
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.
VISSION
A trans nationally competitive financial conglomerate of significance to
societies and pride of india.

16

POLICIES (SCHEME)
Life Insurance Corporation of india provide number to its consumers. LIC
differentiated their policies into five different types which are:
1.
2.
3.
4.
5.

Insurance plans
Pension plans
Unit plans
Special plans
Group plans
PRODUCTS BY LIC INURANCE PLANS

1. JEEVAN ANAND
Features:
Product summary:
This plan is a combination of endowment assurance and whole
life plans. It provides financial protection against death throughout
the life assured with the provision of payment of a lump sum at the
end of the selected term in case of this survival.
Premium:
Premiums are payable yearly, half-yearly, quarterly, monthly or
through salary deductions as opted by customer throughout the
selected term of the policy or till earlier death.
Bonuses:
This is a with profit plan and participates in the profits of the
corporations life insurance business. It gets a share of the profits in
the form of bonuses. Simple reversionary bonuses are declared per
thousand sun assured at the end of each financial year. Once
declared, they form part of the guaranteed benefits of the plan.
Bonuses will be added during the selected term or till death, if
occurs earlier. Final bonus may also be payable provided the policy
has run for certain minimum period.

17

Benefits:
A. Benefits in case of death during the selected term:
The sum Assured along with the vested bonuses is payable
on death in a lump sum.
B. Benefits in case of survival to the end of selected term:
The sum Assured along with the vested bonuses is payable in
a lump sum on survival to the end of the term. An additional
sum assured is payable on death thereafter.
C. Accident Benefit:
An additional sum assured (subject to limit of Rs 1lakh) is
payable in a lump sum on death due to accident of life
assured. In case of permanent disability of life assured due to
accident this additional sum assured is payable in instalment.
D. Supplementary / Extra Benefits:
These are the optional benefits that can be added to your
basic plan for extra protection/option. An additional
premium is required to be paid for these benefits.
Surrender value:
Buying a life insurance contract as is long-term
commitment. However, surrender values are available on the
plan on earlier termination of the contact.
Guaranteed Surrender value:
The policy may be surrendered after it has been in force for
3 years or more. The guaranteed surrender value is 30% of
the basic premiums paid excluding the first years premium.
Any extra premiums paid and premium towards accident
benefit are also excluded.

18

2. Jeevan Shree-1:
PRODUCT SUMMARY;
This is an endowment assurance plan offering the choice of many
convenient premiums paying terms. It provides financial protection
against death throughout the term of plan with the payment of maturity
amount on survival to the end of the policy term.
Premiums:
Premiums are payable yearly, half yearly, quarterly or through salary
deductions, as opted by you, throughout the premium paying term or till
earlier death. Alternatively premium may be paid in one lump sum (single
premium)
Guaranteed Addition:
The policy provides for the guaranteed additions at the rate of Rs.50/- per
thousand sum assured for each completed year for first five year of the
policy. The guaranteed Additions are payable along with the basic sum
assured at the time of claim.
Bonuses:
The policy participate in the profit of the Corporations life insurance
business from the 6th year onwards. It will get a share of the profit in the
form of bonuses. Simple reversionary bonuses will be declared per
thousand basic sum assured annually at the end of each financial year.
Once declared, they will form part of the guaranteed benefits of the plan.
Benefits:
a) Death Benefits:
The sum assured along with guaranteed additions and vested bonuses,
if any, is payable in a lump sum on death of the life assured during the
policy term.
b) Maturity Benefit:
The sum assured along with guaranteed additions and reversionary
bonuses, if any is payable in a lump sum on survival to the end of the
policy term.
c) Supplementary / Extra Benefits:
These are the optional benefits that can be added to your basic plan for
extra protection / option. An additional premium is required to be paid
for these benefits.
d) Surrender Value:
Buying a life insurance contract is a long-term commitment. However,
Surrender value is available on the plan on earlier termination of the
contract.
e) Guaranteed surrender value:
19

The policy may be surrendered after it has been in force for 3 years or
more. The guaranteed surrender value is 30% of the basic premium
paid excluding the first years premium. In case of a single premium
paid excluding any extra premium.

20

LIC Pension Plans Introduction

LIC Pension Plans are Individual plans that will concentrate on your future
needs and financial stability in your old age. Pension plans are best suited for
senior citizens to plan their future securely, Then they do not need to give up on
the best things in their life. By taking pension plans you can enjoy your life
even after your retirement with your loved ones. LIC pension Plan provides
minimum guarantee on the premium paid.

By taking LIC Pension plan while you are earning, the invested amount in
pension plan will help you in old age after your retirement. The company will
pay the pension through out the life time of the policy holder. You can purchase
the policy by paying lump-sum amount or by paying regular premiums. You
have an option to choose the type and mode of payment of pension such as
Yearly/ Half-yearly/ Quarterly/Monthly according to your requirements.
If you have purchased the policy with high price you can get incentives. The
different pension plans available under the Life Insurance Corporation of
India are(LIC), LIC Jeenan Akshay-6, Varistha Pension Bima Yojana and LICs
New Jeevan Nidhi. Each plan has different eligibility criterias, you can select
any one of them by comparing each plan conditions according to your
requirements. You can calculate the returns available in LIC Pension plans
using Return calculator.

LIC Pension Plan Benefits

The basic Benefits available in LIC Pension Plans are

Death Benefit.

Income Tax Benefit.

Death Benefit: On Death of the policy holder during the policy period, the
purchased amount will be refunded or the premium will be paid to the nominee
21

till the end of the guaranteed period or the policy will be seized. It completely
depends on the pension option chooses by the policy holder.

Income Tax Benefit: Premiums paid to buy any of the LIC Pension plan are
exempted from tax. Pension which will be received by the policyholder is
taxable.
For more Information please check the below LIC pension plans available.

LIC Pension Plan Example

For example if you have taken the LIC Pension Plan at a age 30 years for a
policy term of 20 years and you have chosen to pay premium regularly, on
vesting of your policy you will get Basic Sum Assured along with Guaranteed
Additions, Final Additional bonus and vested Simple Reversionary bonuses as
maturity benefit which will be converted in to pension. If the policy holder dies
within the policy period of Basic Sum Assured along with Guaranteed Addition
will be paid as lump sum to the nominee In LIC Pension Plans.

LIC Jeevan Akshay 6 plan is a type of LIC pension plan. This plan is an
immediate annuity pension plan. you can purchase this policy by paying a lump
sum amount as a single Premium. In LIC Jeevan Akshay 6 Plan after buying the
policy, pension will start immediately without delay. In LIC Jeevan Akshay 6
plan you can select mode of pension payment such as yearly, half-yearly,
quarterly and monthly. Once the payment mode is chosen, the option cannot be
changed because the pension starts immediately after buying the LIC Jeevan
Akshay 6

22

LIC New Jeevan Nidhi Plan is a regular premium LIC pension plan. Premium
needs to be paid till the completion of the policy period. In LIC New Jeevan
Nidhi Plan at the end of the accumulation period, the maturity benefit
comprising of the sum assured, final additional bonus and the increment bonus
will be converted into pension. After the end of the accumulation period, the
vesting period starts in which pension will be paid out in regular intervals till
the end of policy period. After the expiry of the life insured, a lump sum will be
paid to the nominee.

LIC New Jeevan Nidhi Pension Plan

LIC Varishtha Pension Bima Yojana is a type of LIC pension plan introduced by
Life Insurance Corporation of India(LIC). Government of India announced the
revival of LIC Varishtha Pension Bima Yojana in Union Budget 2014-2015.
LIC Varishtha Bima Yojana is a single premium pension policy for senior
citizens, with pension starting to flow in immediately. One can opt to receive
the pension in different modes like yearly,half-yearly,quarterly and monthly.

LIC Varistha Pension Bima yojana

All content provided in this post is for informational purposes only. The owner
of this site makes no representations as to the accuracy or completeness of any
information on this site. For detailed and accurate information please refer the
official website www.licindia.in.

23

3.LIC Bima Bachat Plan

LIC Bima Bachat Plan is actually a single premium Money Back Plan. This
is a non unit-linked insurance traditional plan where a certain amount of money
is paid as pre-decided intervals. In this plan the premium is paid only once and
15% of the Sum Assured is paid after every 3 years and the entire Single
Premium paid plus Loyalty Additions are paid on Maturity. However, if the Life
Insured dies within the policy tenure, the entire Sum Assured is paid
irrespective of the amount of money paid as Survival Benefits.

Key Features of LIC Bima Bachat plan

This is a single premium plan
Loyalty Additions are payable on Policy Maturity
Survival Benefit is payable every 3 years of 15% of the Sum Assured
24

 There are 3 policy tenures possible- 9 years, 12 years and 15 years

There is a Sum Assured Rebate for large Sum Assured.

Benefits you get from LIC Bima Bachat plan

Death Benefit In case of death of the Life Insured, the nominee receives the
entire Sum Assured + accrued Bonus

Survival Benefit The Life Insured would receive the following Survival
Benefit
For a Policy Term of 9 years, 15% of Sum is payable at
the end of 3 and 6 years, a total of 30% of Sum Assured is payable
For a Policy Term of 12 years, 15% of Sum is payable at the end of 3, 6
and 9 years, a total of 45% of Sum Assured is payable
For a Policy Term of 15 years, 15% of Sum is payable at the end of 3, 6, 9
and 12 years, a total of 60% of Sum Assured is payable

Maturity Benefit When the policy matures, the entire single premium paid
+ Loyalty Additions are paid.

Income Tax Benefit Premiums paid under life insurance policy are
exempted from tax under Section 80 C and maturity proceeds are exempted
from tax under Section 10 (10D)

Eligibility conditions and other restrictions in LIC Bima Bachat

plan

25

Minimum

Maximum

Sum Assured (in Rs.)

20,000

No Limit

Policy Term (in years)

9, 12

15

Premium Payment
Term (in years)
Entry Age of Life
Insured (in years)
Age at Maturity (in
years)

Single

15

66

75

Premium (in Rs.)

Nothing Specified

Payment modes

Yearly, Half-yearly, Quarterly, Monthly and

SSS

Sample illustration of premium of LIC Bima Bachat plan

The below illustration is for a healthy Male (non-tobacco user) opting for a
Age = 30 years, 35 years and 40 years, Sum Assured = Rs 1,00,000
Policy Term = 15 years.

26

Additional Features and Benefits of LIC Bima Bachat plan.

Riders - There are no additional riders in this plan

4. The Convertible Term Assurance policy:

Features:
This plan of assurance is designed to meet the needs of those who are
initially unable to pay the larger premium required for a whole life or
endowment assurance policy, but hope to be able to pay for such
policy in the near future. This plan would be found useful also in cases
where its is desired to leave the final decision as to the plan to a later
date when, perhaps a better choice could be made. Policy holder get
an option of converting an policy into endowment assurance or limited
payment whole life assurance.

Suitable for:
All people with earned income under category I and unearned
incomes under category It basically standard and substandard
lives attracting EMR classes I and IT.
27

Benefits:
A)Survival Benefit:
Not Applicable
B) Death Benefit:
The sum assured is payable only in the event of death of the
Life Assured before the expiry of the specified term.
PENSION PLAN:
1. New Jeevan Dhara-1
Features
Product Summary:
There are deferred annuity plans that allow the policyholder to make
provision for regular income after the selected term.
Premium:
Premiums are payable yearly, half-yearly, quarterly, monthly or
through salary deduction as opted by you, thoughout the term of the
policy or till earlier death. Altetrnatively, the premium may be paid in one
lump sum ( single premium )
Bonuses:
These are with profit plans and participate in the profit of the
corporations annuity / pension business. Policies get a share of the profit
in the form of business. Simple reversionary bonuses are declared per
thousand sun assured annually at the end of each financial year. Once
declared, they form part of the guaranteed benefits of the plan. Final
(Additional) Bonuses may also be payable provided policy has run for a
certain minimum period.
Benefits
A) Death Benefits
On death of the life assured during the term of the policy the basic
premium paid, excluding any rider premiums or extra premiums, up to
the date of death accumulated with interest at such rate as decided by
the corporation will be payable to the nominee. Currently, the interest
rate is 3%, 4% or 5% if the death occurs within the first 10 years, 20
years or thereafter respectively.

28

B) Maturity Benefits:
A Maturity the policyholder can encash up to a maximum 25% of the
maturity proceeds as a Tax-Free lump sum. The balance should be
compulsorily converted to an annuity at the rates applicable at the time
of maturity of the policy. The policyholder has the choice of opting for
any one of 5 annuity options. The annuity options available are:
1. Annuity payable for remainder of life
2. Annuity payable for life with guaranteed period of 5,10,15 or 20
years
3. Joint life and last survivor annuity to the annuitant and his / her
spouse under which annuity payable to the spouse on death of the
purchaser will be 50% of that payable to the annuitant
4. Life annuity with a return of purchase price on death of the
annuitant
5. Life annuity increasing at a simple rate of 3% per annum.

29

UNIT PLANS 1
1. Market Plus 1
This is a unit linked pension plan where in the pension is payable
after a specified period. Four type of investment funds namely bond ,
secured, Balanced and growth fund are offered. Though primarily a
pension product , the plan has many attractive features and option which
make it an ideal retirement solution for the future.
Benefits:
A) On vesting:
On vesting of the policy , the fund value will be utilized to provide a
pension based on them prevailing annuity rates. An option to commute
up to one third of the payable benefit in a lump sum.
B) On Death:
In event of the unfortunate death of the policy holder the fund
value along with the riders ,if any, will be payable in a lump sum or as
a pension.
OPTIONS
Three attractive benefits, viz - Life cover, Accident benefit and
critical lines benefits are available as option or riders. Life option is
available within certain limits depending on the age at entry of the life
assured. The other option are available to all proposers who have
opted for life cover. The quantum of the risk covers can also be
reduced. subject to the minimum limits once a year. A policy can be
taken without any of the riders also.
PAYMENT OF PREMIUMS:
Premiums can be paid in a lump sum ( single premium ) and also by
monthly (ECS), quarterly, half-yearly and yearly modes.
CHANGE IN FUND TYPE ( SWITCH):
The plan also allows a policy holder to switch from one type of fund
to another up to four time a year, free of charge.

30

SPECIAL PLANS
1. Bima Nivesh
Features
Bima Nivesh 2005 is a plan with compound rate of guaranteed additions
and loyalty additions. This is the revised version of our popular bima
nivesh plan 2004 and is introduced to meet the overwhelming demand for
a single premium plan from our customers. It is a single premium , ideal
investment plan for those who have no regular income but good
periodical income. Bima nivesh 2015 is available for terms 5 or 10 years
The guaranteed surrender value is payable after the policy has run for at
least one year. Term assurance rider is also available by payment of a
single premium at the option of the proposer.
Benefits:
1. Guaranteed additions:
Guaranteed addition at the compound rate of Rs.50 per thousand sum
assured per annum for the policy with term of 5years and at the
compound rate of rs.55 per thousand sum assured per annum for the
policy with term of 10 years.
2. Loyalty Addition:
Depending upon the corporations experience with regard to morality,
interest and expenses and based on term of the policy, Loyalty
addition, if any may be declared by the corporation and paid on
maturity.
3. Maturity Benefits:
The basic sum assured along with compounded guaranteed additions
will be payable. Loyalty addition, if any will also be added to this
benefit.
4. Payment on death:
In case of the unfortunate death of the life assured during the term of
the policy, sum assured along with the accrued guaranteed additions
will be payable.
5. Surrender value:
Surrender value is payable after the policy has run at least for one
year.

31

GROUP SCHEME:
1. Group Term Insurance Scheme:
A) Nature of the scheme:
Group insurance scheme is meant to provide life insurance protection
to groups of people. Administration of the scheme is on group basis
and cost is low. Under group insurance scheme, life insurance cover is
allowed to all members of a group subject to some simple insurability
conditions without insisting upon any medical evidence. scheme offers
covers only on death and there is no maturity value at the end of the
term.
B) Premium Chargeable:
Group insurance scheme is at present offered under one yearrenewable
group term assurance plan. Every year on annual renewal date LIC
charges the premium depending upon the changes in size and age
distribution of the age group.
C) Different Scheme:
Group insurance scheme has a number of varieties. The scheme may
provide for a uniform cover to all members of the group or graded
covers for different categories of members , cover for all amount of
outstanding housing loans or vehicle advance, ors some other benefits.
The sheme may have add-ons like double accident benefit, critical
iilness benefit, disability benefit etc.

32

GENERAL FEATURES OF VARIOUS GROUP INSURANCE SCHEME:

1. PREMIUM:
The premium under such scheme may be wholly paid by the employer or
the nodal agency. The scheme may be contributory i.e. the members may
also contribute.
2. DOUBLE ACCIDENT BENEFIT:
Double accident benefit, i.e. payment of double the sum assured on death
due to accident ( without permanent disability benefit ) may be allowed
under group insurance scheme for an extra premium.
3. ELIGIBILITY
For group insurance scheme in lieu of the insurability condition is that
should be a member of the provident fund scheme of the employer. For
other GI scheme of employer-employee groups the insurability condition
is that the member should not be absent on ground of sickness on the
entry date. For all non-employer-employee group scheme the basic
insurability condition is that the member should be in good health on the
date of entry.
4. ADMINISTRATION OF THE SCHEME:
At the commencement and thereafter on each annual renewal date, the
group policyholder will have to send all the members data ( particular of
the new entrants from time to time) to the P & GS unit of LIC,. Detailed
OYRGTA premium calculation will be made on each annual renewal
date.

33

2. Janashree Bima Yojana ( JBY )

Feature
The objective of the scheme is to provide life insurance protection to the
rural and urban poor persons below poverty line and marginally above the
poverty line.
ELIGIBILITY:
A Person who is
Aged between 18 and 59 years
Below or marginally above poverty line
A member of any of the approved vocation / occupation groups
MINIMUM MEMBERSHIP SIZE:
Twenty five.
Benefits:
In the events of
Death of the member, an amount of rs. 30000/- is payable.
Death / Total permanent disability, due to accident , An amount of rs .
75000/- is payable.
Permanent partial disability , due to accident, an amount of rs. 37500/- is
payable.

PREMIUM:
The premium under the scheme is rs.200/- per annum per member.
Balance 50% will be born by the social security fund.

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CHAPTER: 3

35

INTRODUCTION
The purpose of the methodology is to describe the research procedure.
This includes overall research design. The sampling procedure, the data
collection method and the analysis procedure and method.
In this study Benefits of Products of New India Insurance. Descriptive
type of research has been done for collecting the primary data. The primary data
was collected through Survey of the customers.

METHODOLOGY
Study design
Primary data which has been collected by interview and questionnaire
method. The primary data was collected through the personal interview survey
of the customers.
For secondary data collection method the help of various reference book
have been taken which are mentioned in bibliography and also by way of
suffering through the insurance company website. The secondary data was
collected through websites, reference book for topic through selected.

36

CHAPTER: 4

37

38

1. You have taken insurance policy from which company?

LIC
50%
15

HDFC
30%
3

ICICI
20%
6

OTHERS
10%
6

Chart Title

OTHERS; 9%
ICICI; 18%

LIC; 45%

HDFC; 27%

INTERPRETATION: 50% of respondent taken a LIC policy 30% of respondent

taken a HDFC insurance policy, 20%of respondent taken a ICICI prudential
policy, 10% of respondent taken a another company policy.

39

2. Which policy you have taken from LIC?

Bima Nivesh
Bima Bachat
Market plus
Any other

13%
26%
20%
20%

5
4
3
3

Chart Title

Bima Nivesh; 16%

Any other; 25%
Bima Bachat; 33%
Market plus; 25%

INTERPRETATION: 13% of respondent satisfy with the Bima Nivesh

Plan, 26% of respondent satisfy the Bima Bachat plans and policies, 20%
of respondent satisfy the market plus plan & 20% of respondent satisfy
the other plans and policies.

40

3. Are you satisfied with the services of LIC?

yes
87%
13

No
13%
2

Chart Title

No; 13%

yes; 87%

INTERPRETATION: 87% of people satisfied the services of their

company, 13% of people are not satisfied with services of LIC.

41

4. How is the claim settlement procedure of LIC?

Excellent
Good
Satisfactory
Not satisfactory

53%
33%
13%
6%

7
5
2
1

Chart Title

Not satisfactory; 6%
Satisfactory; 12%
Excellent; 50%
Good; 31%

INTERPRETATION: 53% of customers feels that LIC provide excellent

services, 33% of customers says they provide good services, for 13% of
customers, feels they provide satisfactory services and 6% of customers says
LIC not provide satisfactory services.

42

5. Do your complaints & Queries are resolved property?

Yes
80%
12

No
20%
3

Chart Title

No; 20%

Yes; 80%

INTERPRETATION: 80% of customers feel that there complaints & queries are
resolved properly & other 20% customer feels that there complaints and queries
are properly not resolved.

43

CHAPTER: 5

44

CONCLUSION
After completing the project it is concluded that LIC develop its various plans
and policies, flexible in nature, according to the requirements of its targeted
market or customers and is thus beneficial to its customers in various ways. The
most important benefit it provide to its customers is that it is a government
owned company. This lead to increase in the satisfaction level of its customer
that is why LIC has more than 200 million policyholders which is equal to the
fourth largest country in world. Therefore it is not only beneficial better than
other insurance companies not only regarding its provide its product but also its
services.

45

CHAPTER: 6

46

BIBILIOGRAPHY
Information and data used in the project has been collected from the following
sources:www.licindia.com
www.licmutual.com
www.lichousing.com
www.wikipedia.org
www.reportbuyer.com
www.google.com

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