ANJI Final Project

LIC V/S PRIVATE LIFE INSURANCE COMPANIES
INDEX
Sr.No
Topic
Page No.
Introduction to insurance
2-15
Present scenario of insurance industry
16-18
Trends in insurance sector
19-33
Impact of budget on insurance sector
34-36
Pvt V/S Public insurance sector
37
Company profile of LIC & ICICI
38-51
prudential
7
Innovation strategy & IT
52-56
Emerging trend
57-60
Conclusion
61
10
Reference
62
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Introduction Insurance
According to the U.S. Life Office Management Inc. (LOMC), "Life
Insurance provides a sum of money if the person who is insured dies
whilst the policy is in effect."
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Life insurance has come a long way from the earlier days when it was
originally conceived as a risk-covering medium for short periods of
time, covering temporary risk situations, such as sea voyages. As life
insurance became more established, it was realized what a useful tool
it was for a number of situations that includes temporary
needs/threats, savings, investment, retirement etc.
In India some Europeans started the first life insurance company in
Bengal Presidency, viz., The Orient Life Insurance in 1818. The Year
1870 was a year of land mark in the history of Indian Insurance
separating the early period of pioneering attempts at life insurance
from the subsequent period of steady development at the
establishment of Indian life office, viz., Bombay Mutual Life
Assurance Society in 1871
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Up to end of 19th century, the insurance was in the inspectional

stage. Therefore no legislation was required till that usually the
Indian Company Acts 1883 was applicable. Since 1956, with the
nationalization of insurance industry, the state run Life Insurance
Corporation of India (LIC) has held the monopoly in India. Then
comes the LPG (Liberalization, Privatization and Globalization) that
paved entry of Private and Foreign Life Insurance players in India
during the late 90's and earlier 2000's. Currently India and China are
the most lucrative insurance markets in the world... The share of life
insurance premium to GDP of India was 1.29 percent, which is
abysmal in the global standard. Despite these opportunities, however,
there is also a rough ride ahead for the new players in India. This is
because, unlike in the West, insurance is sold more as an instrument
of savings in India than as a product offering for protection and
security. LIC's 1996 insurance survey reveals that more than 40
percent of insurance-buyers look at insurance products as a means of
savings.
Risk coverage is only a secondary objective for them and nearly 26
percent of the insurance policies sold are on considerations of old age
security. Only 18 percent of insurance policies are sold on death risk
considerations. (IRDA) Insurance Regulatory and Development
Authority
The regulatory body for insurance IRDA has been established with the
following mission:
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"To protect the interests of the policy holders, to regulate, promote

and ensure orderly growth of the insurance industry and for matters
connected
Therewith or incidental thereto."
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Private Players in Indian Life Insurance

The major players in Indian life insurance sector include:
* Allianz Bajaj Life Insurance Company Ltd.,
* Aviva Life Insurance Co. India Pvt. Ltd.,
* AMP SANMAR Assurance Company Ltd.,
* Birla Sun Life Insurance Company Ltd.,
* HDFC Standard Life Insurance Company Ltd.,
* ICICI Prudential Life Insurance Company Ltd.,
* ING Vysya Life Insurance Company Private Ltd.,
* Life Insurance Corporation of India
* Max New York Life Insurance Co. Ltd.,
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* MetLife India Insurance Company Pvt. Ltd.,

* Om Kotak Mahindra Life Insurance Co. Ltd.,
* SBI Life Insurance Company Ltd.,
* Tata AIG Life Insurance Company Ltd.,
The market share for LIC is 90 percent and other players share only the
remaining 10 percent. Market Potential for Private Life Insurance
Companies in India .It has been found out that; 85 percent of the
Indians prefer LIC than any other insurance companies.
'Prevention of Loss', 'Assured Returns' and 'Long term Investment'

are the important factors influencing Indians in opting for Life
Insurance
Only few of the Indians are aware of private life insurance
companies.
Most of the Indians are of the opinion that private insurance

companies would be able to perform well in the long run.
Most of the Indians are interested in 'Money back' policies than

others
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Most of them are interested in insuring for an amount of Rs. 1- 2

lakhs
There is significant relationship existing between monthly

household
income
and
amount
insured
Based on the monthly household income, Indians prefer to their

investment needs like bank deposit, post office schemes, real
estate, insurance, gold, chit funds, shares etc
.
Agents are mostly responsible for selling insurance products in

India
Objective
The project was conducted after taking into consideration the changing
face of the life insurance sector. The objective for conducting this project
was:
To understand the life insurance sector in India.
To learn about LIC & ICICI prudential.
To know the scope of life insurance in India.
To realize the masses how carrier can be developed generating huge
income from insurance
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Scope
The project gives brief description of the following -
What is insurance?
Effect of liberalization
Trends in insurance sector
Impact of budget on insurance sector
Product offered by LIC & ICICI Prudential
Impact of financial crisis on LIC
Limitation
Life Insurance is a vast subject. It is not possible to provide information
regarding all the different types of policies which provides different
benefits. The project would have been much better if the comprehensive
study of all the different types of policy provided by different companies
is undertaken.
DEFINITIONS
The definition of insurance can be made from two points:
Functional definition.
Contractual definition.
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Functional definition
Insurance is a co-operative device to spread the loss caused by a
particular risk over a number of persons who are exposed to it and who
agree to insure themselves against the risk.
General Definition
Insurance has been defined to be that in which a sum of money as a
premium is paid in consideration of the insurers incurring the risk of
paying a large sum upon a given contingency.
In the words of John MageeInsurance is a plan by themselves which

large number of people associate and transfer to the shoulders of all,
risks that attach to individuals.
Fundamental Definition
In the words of D.S. Hansell, Insurance accumulated contributions of
all parties participating in the scheme.
Contractual Definition
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In the words of justice Tindall, Insurance is a contract in which a sum

of money is paid to the assured as consideration of insurers incurring the
risk of paying a large sum upon a given contingency.
INSURANCE INDUSTRY: CLASSIFICATION

General Insurance
According to data released by IRDA, the general insurance industry
recorded 22.76 per cent year-on-year (y-o-y) growth in gross premium
underwritten during AprilOctober 2010. The industry collected gross
premium of US$ 5.29 billion during AprilOctober 2010 compared with
US$ 4.31 billion in the same period last year.
The public sector players posted 21.09 per cent y-o-y growth in gross
premium during AprilOctober 2010 over the corresponding period last
year. At the same time, private players recorded a 25.19 per cent y-o-y
increase in gross premium.
The state-run insurers fared better than their private counterparts, with
New India Insurance collecting the maximum premium of US$ 916.77
million during April-October 2010, compared to US$ 770.25 million in
the same period last year, growing by 19.04 per cent.
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According to the IRDA's Summary Reports of Motor Data of Public and

Private Sector Insurers - 2009-10, nearly 28.4 million policies were
issued and a total premium of US$ 2.31 billion was collected
Life insurance corporation

The US$ 41 billion Indian life insurance industry is considered the fifth
largest life insurance market, and is growing at a rapid pace of 32-34 per
cent annually, according to the Life Insurance Council.
As per data released by Life Insurance Council, the apex industry body
of all life insurance companies in India, total premium collected by the
life insurance industry increased 13 per cent to US$ 41.05 billion in
calendar year 2010 from US$ 36.23 billion in 2009. The new business
premium of life companies has grown by 28 per cent year-on-year (yoy)
to US$ 19.14 billion till December 31 2010 as compared to US$ 15
billion in 2009. The growth comes in the backdrop of significant
regulatory changes made in product profile of ULIPs (unit- linked
insurance products) in 2010, which was also a year in which a few
private life insurers completed a decade of their existence, the Life
Insurance Council said in a statement.
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State-owned Life Insurance Corporation (LIC) of India, the largest and

most dominant life insurer crosses has given an exuberant performance
in terms of first year premium. As of January 29 2011, LIC received an
income of US$ 7.52 billion by successfully selling 2, 52, 44,846 policies.
SBI Life has overtaken ICICI Prudential to become the country's largest
private insurer in terms of first year premium collection, garnering a new
business of US$ 1.04 billion in April-December 2010.
ICICI Prudential collected the first year premium of US$ 1.02 billion in
nine months to December 2010, according to the data released by
Insurance Regulatory and Development Authority (IRDA).
Insurance is nothing but a system of spreading the risk of one onto the
shoulders of many. While it becomes somewhat impossible for a man to
bear by himself 100% loss to his own property or interest arising out of
an unforeseen contingency, insurance is a method or process which
distributes the burden of the loss on a number of persons within the
group formed for this particular purpose. Basic Human trait is to be
averse to the idea of risk taking.
Insurance may be described as a social device to reduce or eliminate risk
of loss to life and property. Under the plan of insurance, a large number
of people associate themselves by sharing risks attached to individuals.
The risks, which can be insured against, include fire, the perils of sea,
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death and accidents and burglary. Any risk contingent upon these, may
be insured against at a premium commensurate with the risk involved.
Thus collective bearing of risk is insurance.
Pre-Liberalization Scenario
Indian History: Time to turn the clock back-and open up insurance
Fifty years ago, India had a bustling, if somewhat chaotic, entirely
private insurance industry. The year after Independence, 209 life
Insurance companies were doing business worth Rs712.76 crore (which
grew to an amazing Rs 295,758 crore in 1995-96). Foreign insurers had a
large market share 40 per cent for general insurance but there were also
plenty of Indian companies, many promoted by business houses like the
Tatas and Dalmias.
The first Indian-owned life insurance company, the Bombay Mutual Life
Assurance Society, was set up in 1870 by six friends. It Insured Indian
lives at the normal rates instead of charging a premium of 15 to 20
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percent as foreign insurers did. Its general insurance counterpart, Indian

Mercantile Insurance Company Ltd., opened in Bombay in 1907.
A plethora of insufficiently regulated players was assure recipe for
abuse, especially because there was no separation between business
houses and the insurance companies they promoted. The Insurance Act,
1938, introduced state controls on insurance, including mandatory
investments in approved securities, but regulation remained ineffective.
This reckless record stoked the pro-nationalization fires. The 1956 life
insurance Nationalization was a top-secret intrigue; for fear that
unscrupulous insurers would siphon funds off if warned.
The government resolved to first take over the management of life

insurance companies by ordinance, then their ownership. The then
finance minister C.D. Deshmukh later wrote: 'Seth Ramakrishna
Dalmias extraction of Rs.225 crore (misappropriation by the Bharat
Insurance Company) was a heaven-sent opportunity. We were ready to
nationalize, with every detail worked out."
I believe this will be regarded as one of the best kept secrets of the
Government of India in all times to come." The ordinance transferred
control of 245 insurers to the government. LIC, established eight months
later, took over their ownership. General Insurance had its turn in 1972,
when 107 insurers were amalgamated into four companies headquartered
in the four metros, with GIC as a holding company. Nationalization
brought some benefits. Insurance spread from an urban-oriented, highend business to a mass one. Today, 48 per cent Of LIC's new business is
rural. Net premium income in general insurance grew from Rs222 crore
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in 1973 to Rs 5,956 crore in 1995- 96. Yet, rigid controls hamper

operational flexibility and initiative so both customers service and work
culture today are dismal.
There are a total of 13 life insurance companies operating in India, of
which one is a Public Sector Undertaking and the balance 12 are Private
Sector Enterprises.
List of Companies are indicated below:TABLE NO: 1 NAME OF THE LIFE INSURANCE COMPANY
AND THE SHARE HOLDING PATTEN
Name of the company
Nature of Holding
Allianz Bajaj Life Insurance Co
Private
Aviva Life Insurance
Private
Birla Sun Life Insurance Co
Private
HDFC Standard Life Insurance

Co
ICICI Prudential Life Insurance
Co
ING Vysya Life Insurance Co.
Private
Private
Private
Life Insurance Corporation of Public

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India
Max New York Life Insurance Co. Private
MetLife Insurance Co.
Om
Kotak
Private
Mahindra
Life
Insurance
Private
Reliance insurance
Private
SBI Life Insurance Co
Private
TATA-
AIG
Life
Company
Insurance
Private
TABLE 2. NAME OF THE PLAYER MARKET SHARE (%)

Name of the Player
LIFE INSURANCE CORPORATION OF
INDIA
Market share (%)

82.3
ICICI PRUDENTIAL
5.63
BIRLA SUN LIFE
2.56
BAJAJ ALLIANZ
2.03
SBI LIFE INSURANCE
1.80
HDFC STANDARD
1.36
TATA AIG
1.29
MAX NEW YARK
0.90
AVIVA
0.79
OM KOTAK MAHINDRA
0.51
ING VYSYA
0.37
MET LIFE
0.21
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PRESENT SCENARIO OF INSURANCE

INDUSTRY
India with about 200 million middle class household shows a huge
untapped potential for players in the insurance industry. Saturation
of markets in many developed economies has made the Indian
market even more attractive for global insurance majors. The
insurance sector in India has come to a position of very high
potential and competitiveness in the market. Indians, have always
seen life insurance as a tax saving device, are now suddenly
turning to the private sector that are providing them new products
and variety for their choice.
Consumers remain the most important centre of the insurance

sector. After the entry of the foreign players the industry is seeing
a lot of competition and thus improvement of the customer service
in the industry. Computerisation of operations and updating of
technology has become imperative in the current scenario. Foreign
players are bringing in international best practices in service
through use of latest technologies
The insurance agents still remain the main source through which
insurance products are sold. The concept is very well established
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in the country like India but still the increasing use of other
sources is imperative.
At present the distribution channels that are available in the market

are listed below:
Direct selling
Corporate agents
Group selling
Brokers and cooperative societies
Bancassurance
Customers have tremendous choice from a large variety of

products from pure term (risk) insurance to unit-linked investment
products. Customers are offered unbundled products with a variety
of benefits as riders from which they can choose. More customers
are buying products and services based on their true needs and not
just traditional moneyback policies, which is not considered very
appropriate for long-term protection and savings. There is lots of
saving and investment plans in the market. However, there are still
some key new products yet to be introduced - e.g. health products.
The rural consumer is now exhibiting an increasing propensity for

insurance products. A research conducted exhibited that the rural
consumers are willing to dole out anything between Rs 3,500 and
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Rs 2,900 as premium each year. In the insurance the awareness

level for life insurance is the highest in rural India, but the
consumers are also aware about motor, accidents and cattle insurance.
In a study conducted by MART the results showed that nearly one

third said that they had purchased some kind of insurance with the
maximum penetration skewed in favor of life insurance. The study
also pointed out the private companies have huge task to play in
creating awareness and credibility among the rural populace. The
perceived benefits of buying a life policy range from security of
income bulk return in future, daughter's marriage, children's
education and good return on savings, in that order, the study adds.
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Trends in Insurance Sector
INDIAN INSURANCE IN 21ST CENTURY:

2000: IRDA starts giving licenses to private insurers: ICICI prudential
and HDFC Standard Life insurance first private insurers to sell a policy
2001: Royal Sundaram Alliance first non life insurer to sell a policy
2002: Banks allowed selling insurance plans. As TPAs enter the scene,
insurers start setting non-life claims in the cashless mode
2007: First Online Insurance portal, https:/// set up by an Indian
Insurance Broker, Bonsai Insurance Broking Pvt Ltd.
The Government of India liberalized the insurance sector in March 2000
with the passage of the Insurance Regulatory and Development
Authority (IRDA) Bill, lifting all entry restrictions for private players
and allowing foreign players to enter the market with some limits on
direct foreign ownership.
Minimum capital requirement for direct life and Non-life Insurance
company is INR1000 million and that for reinsurance company is INR
2000 million. In the 2004-05 budgets, the Government proposed for
increasing the foreign equity stake to 49%, this is yet to be effected.
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Under the current guidelines, there is a 26 percent equity cap for foreign
partners in direct insurance and reinsurance Company.
Emerging Trend in Indian Insurance Sector

Market by 2015, particularly in countries like India and China. The
IRDA is the major body, which is providing better opportunities for the
private player in India. GIC & LIC's monopoly market approach is no
more prevalent in India. The new market scenario for insurance is
growing; no doubt it is a flying bird.
Change is the eternal law of nature. Everything is changing according to
the need of the time. Economic growth and social development in
present scenario is due to sudden change in industrial policy and
economic planning. Globalization has been the basic mantra after 1991,
so everyone thinks of being global. Liberalization, privatization and
globalization is the basic concept of success in all aspect of development.
Competition is tough now due to globalization. Business has positioned
the entire economy, and industrialists think about making things global.
There are no stringent rules or regulations for making any business house
or industry. Government gives more emphasis on export and
entrepreneurship.
This is a changing world. Everyone has to compete for better
success. Marketing is the major concept for developing any type of
business. After globalization, marketing has taken a new dimension and
it is the most challenging task now. The new horizon of marketing in the
field of finance and insurance in present scenario is a good sign of
development.
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Globalization - "The Dynamic Force"

Many people consider globalization nothing new - societies have been
interconnected for years. The world has never experienced globalization
at this level of intensity before, or the speed at which it is transforming
and integrating societies.
Herman E. Daly, an analyst of Global Policy Forum, characterizes
globalization as, "Global integration of many former national economies
into global economy, mainly by free trade and free mobility, but also by
easy or uncontrolled economic purposes." He further clarifies that
globalization is not internationalization - globalization brings about a
single, integrated, global economy, while internationalization is a
federation of nations cooperating as sovereign units to advance the
national interest of all members. Though globalization has become a
broad heading for a multitude of global interactions, ranging from the
expansion of cultural influences across borders to the enlargement of
economic and business relations throughout the world, it has different
dynamic force for different person.
For the economist, globalization is essentially the emergence of a global
market. For a historian, it is an epoch dominated by global capitalism.
Sociologists see globalization as the celebration of diversity and the
convergence of social preferences in matters of life style and social
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values. To the political scientist, it represents the gradual erosion of state

sovereignty. But discipline specific studies explain only a part of the
phenomenon. From a multi-disciplinary angle, globalization may be
treated as a phenomenon, a philosophy and a process, which affects
human beings as profoundly as any previous event. Several factors have
been responsible for this phenomenon. This study confines its attention
to four growth-enhancing facets of globalization that have been among
its key drivers, namely trade, finance, communication and transport.
New Horizons of Insurance Market after Globalization

After 1970, insurance sector has become more prosperous. For a long
time, the two most important insurance players were LIC & GIC. Now
so many
MNCs have entered into the same sector like Bajaj Allianz, Aviva, Birla
Sunlife, ICICI Prudential, etc. Insurance is now acting on two
dimensions, i.e., the element of investment and the element of protection.
The Economic Value Addition (EVA) has taken the major concern of the
same business.
Marketing after globalization has become: More customer oriented
Mostly better service oriented
More competitive
Better satisfaction, more value addition and strategic development can
help any insurance sector to sustain in the present era.
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New Market Scenario & Insurance

Insurance market in present scenario though is a booming sector, but the
market has changed from simpler to complex, less challenging to more
challenging. Going domestic to international is a very difficult task.
Understanding market synergy and congestions of perception of
customer in the insurance field is very difficult. The Regulatory Board
like 'IRDA' is playing a very crucial role for the benefit of the insurance
holder. The premium and interest rate can't be violated for better profit
and development. The market is becoming tougher gradually.
Globalization of Insurance Market

Historically, insurance has been an integral part of financial services
system and recognized as a corner-stone of a country's financial health
and symbol of progress. Insurance provides for the financial security of
citizens and their families. It offers valuable investment advice and
serves as an effective step towards both individual and national financial
stability.
After the terrorist attack on the World Trade Center in September 2001,
the momentum of growth of world economy suffered some temporary
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setback. According to 3rd Annual Globalization Index Report of World

Watch Institute, the growth rate fell sharply from 4% in 2000 to 1.3% in
2001. But the world had become stabilized after that and the economic
growth was back with entry of so many MNCs and insurances.
Triggered by the sound fundamentals in global economy and

internationalization of world markets, several countries turned towards
free market regimes in banking and insurance, putting an end to several
decade old state-owned controlled markets. The insurance market in
China & India is brighter. The leading reinsurance company like Swiss
Re & Munich Re has projected 20-25% growth in life and health
insurance market by 2015, particularly in countries like India & China.
GROWTH OF LIFE INSURANCE SOME FACTS (MAY 2009):
LIC
8580.84
7524.56
12 52.55
ICICI
1056.45
1,590.27
51 11.11
Bajaj Allianz
731.85
829.24
135.79
SBI Life
426.39
1,148.67
1698.02
HDFC
355.93
490.40
383.42
Max New York
289.74
501.16
733.50
Reliance Life
204.10
557.33
1733.89
Prudential
Standard
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Birla Sun Life
174.63
501.53
1873.50
Total Private
3930.95
6,795.64
73 47.45
Insurance Market- Present:

The insurance sector was opened up for private participation four years
ago. For years now, the private players are active in the liberalized
environment. The insurance market have witnessed dynamic changes
which includes presence of a fairly large number of insurers both life and
non-life segment. Most of the private insurance companies have formed
joint venture partnering well recognized foreign players across the globe.
There are now 29 insurance companies operating in the Indian market
14 private life insurers, nine private non-life insurers and six public
sector companies. With many more joint ventures in the offing, the
insurance industry in India today stands at a crossroads as competition
intensifies and companies prepare survival strategies in a detariffed
scenario.
There is pressure from both within the country and outside on the
Government to increase the foreign direct investment (FDI) limit from
the current 26% to 49%, which would help JV partners to bring in funds
for expansion.
There are opportunities in the pensions sector where regulations are
being framed. Less than 10 % of Indians above the age of 60 receive
pensions. The IRDA has issued the first license for a standalone health
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company in the country as many more players wait to enter. The health
insurance sector has tremendous growth potential, and as it matures and
new players enter, product innovation and enhancement will increase.
State Insurers Continue To Dominate

There may be room for many more players in a large underinsured
market like India with a population of over one billion. But the reality is
that the intense competition in the last five years has made it difficult for
new entrants to keep pace with the leaders and thereby failing to make
any impact in the market.
Also as the private sector controls over 26.18% of the life insurance
market and over 26.53% of the non-life market, the public sector
companies still call the shots.
The countrys largest life insurer, Life Insurance Corporation of India
(LIC), had a share of 74.82% in new business premium income in
November 2005.
Similarly, the four public-sector non-life insurers New India
Assurance, National Insurance, Oriental Insurance and United India
Insurance had a combined market share of 73.47% as of October 2005.
ICICI Prudential Life Insurance Company continues to lead the private
sector with a 7.26% market share in terms of fresh premium, whereas
ICICI Lombard General Insurance Company is the leader among the
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private non-life players with a 8.11% market share. ICICI Lombard has
focused on growing the market for general insurance products and
increasing penetration within existing customers through product
innovation and distribution.
Reaching Out To Customers

No doubt, the customer profile in the insurance industry is changing with
the introduction of large number of divergent intermediaries such as
brokers, corporate agents, and bancassurance.
The industry now deals with customers who know what they want and
when, and are more demanding in terms of better service and speedier
responses. With the industry all set to move to a detariffed regime by
2007, there will be considerable improvement in customer service levels,
product innovation and newer standards of underwriting.
Intense Competition
In a de-tariffed environment, competition will manifest itself in prices,
products,
underwriting
criteria,
innovative
sales
methods
and
creditworthiness. Insurance companies will vie with each other to

capture market share through better pricing and client segmentation.
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The battle has so far been fought in the big urban cities, but in the next
few years, increased competition will drive insurers to rural and semiurban markets.
Global Standards
While the world is eyeing India for growth and expansion, Indian
companies are becoming increasingly world class. Take the case of LIC,
which has set its sight on becoming a major global player following a
Rs280-crore investment from the Indian government. The company now
operates in Mauritius, Fiji, the UK, Sri Lanka, Nepal and will soon start
operations in Saudi Arabia. It also plans to venture into the African and
Asia-Pacific regions in 2006.
The year 2005 was a testing phase for the general insurance industry
with a series of catastrophes hitting the Indian sub-continent.
However, with robust reinsurance programmes in place, insurers have
successfully managed to tide over the crisis without any adverse impact
on their balance sheets. With life insurance premiums being just 2.5% of
GDP and general insurance premiums being 0.65% of GDP, the
opportunities in the Indian market place is immense. The next five years
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will be challenging but those that can build scale and market share will
survive and prosper
Globalization of Life Insurance Market

SOME GENERAL INFORMATION ABOUT LIFE
INSURANCE IN INDIA
GDP penetration of 4.1%
statutory requirements to provide reach to
rural areas significant channel for household savings into capital

formation
The Life Insurance market in India is an underdeveloped market that was
only tapped by the state owned LIC till the entry of private insurers. The
penetration of life insurance products was 19 percent of the total 400
million of the insurable population. The state owned LIC sold insurance
as a tax instrument, not as a product giving protection. Most customers
were underinsured with no flexibility or transparency in the products.
With the entry of the private insurers the rules of the game have changed.
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The 12 private insurers in the life insurance market have already grabbed
nearly 9 percent of the market in terms of premium income. The new
business premium of the 12 private players has tripled to Rs 1000 crore
in 2002- 03 over last year. Meanwhile, state owned LIC's new premium
business has fallen. Innovative products, smart marketing and aggressive
distribution.
That's the triple whammy combination that has enabled fledgling private
insurance companies to sign up Indian customers faster than anyone ever
expected. Indians, who have always seen life insurance as a tax saving
device, are now suddenly turning to the private sector and snapping up
the new innovative products on offer. The growing popularity of the
private insurers shows in other ways. They are coining money in new
niches that they have introduced.
The state owned companies still dominate segments like endowments
and money back policies. But in the annuity or pension products
business, the private insurers have already wrested over 33 percent of the
market. And in the popular unit linked insurance schemes they have a
virtual monopoly, with over 90 percent of the customers.
The private insurers also seem to be scoring big in other ways- they are
persuading people to take out bigger policies. For instance, the average
size of a life insurance policy before privatisation was around Rs 50,000.
That has risen to about Rs 80,000. But the private insurers are ahead in
this game and the average size of their policies is around Rs 1.1 lakh to
Rs 1.2 lakh- way bigger than the industry average. Buoyed by their
quicker than expected success, nearly all private insurers are fastforwarding the second phase of their expansion plans. No doubt the
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aggressive stance of private insurers is already paying rich dividends.

But a rejuvenated LIC is also trying to fight back to woo new customers
Market Share of Private Sector life Insurance Companies
62
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TECHNOLOGY TREND IN INSURANCE
MARKET ARE AS
FOLLOWS:
Computerization:
Initially, in the late 1950s the insurance companies used Unit
Record Machines (Electro Magnetic Machines) to process data punched
into cards. Computers were introduces in the mid 1960s and by the
1980s the Unit Phased Machines were phased out and the entire process
was computerized. This brought about greater efficiency and quick
service delivery
Internet:
Today, the internet has completely changed the service delivery
process. Internet is today used to even sell insurance policies. Internet is,
in fact, proving to be one of the widely used distribution networks for
selling insurance policies. Also internet is used for sending premium
notices to policy holders through e-mails
Companies like LIC, ICICI all have websites from which people can get
the information about their products, prices, various schemes, and lots of
other information. People can also purchase the product through this
website.
62
Total Share Electronic Clearance Service (ECS):

Almost all the big organizations today provide the ECS facility to
its customers. A policy holder having an account in any bank which is a
member of the local clearing house can opt for ECS debit to pay
premiums. The advantage here is that once the option is exercised, the
policy holder need not visit a branch for paying the premium or
collecting the receipts. On the day indicated by the policy holder, the
premium amount will be directly debited to the bank account of the
policyholder and the receipt will be issued by the designated branch
office.
Call Centers and SMS services:

Almost all the insurance companies have their own call centers
which cater to the phone based queries of the policyholders. This service
is 24x7 and they have the Interactive Voice Response (IVR) systems at
all the branches.
.
62
Impact of Budget on Insurance Sector

Insurance and Indian Budget 2011-2012
Proposals in Indian Budget 2011-2012
A. Budget proposes to move the following legislations in the financial

sector:
(i)
The Insurance Laws (Amendment) Bill, 2008;
(ii)
The Life Insurance Corporation (Amendment) Bill, 2009;
(iii) The revised Pension Fund Regulatory and Development Authority

Bill, first introduced in 2005;
B. Services provided by life insurance companies in the area of

investment are also proposed to be brought into tax net on the same lines
as ULIPs.
C. Budget also proposes to extend the Rashtriya Swasthya Bima Yojana

- a health insurance for the poor - to cover workers of the unorganized
sector like hazardous mining and associated industries like slate and slate
pencil, dolomite, mica and asbestos.
62
Analysis
The insurance legislation would increase the FDI limit to 49
percent from the current 26 percent. The LIC bill would increase
the share capital of Life Insurance Corporation (LIC) to Rs.100
crore from its current Rs.5 crore.
The PFRDA Bill would bring in a full-fledged regulator for the
pension sector. Now it is regulated by an interim authority.
Insurance bill will empower IRDA (Insurance Regulatory and
Development Authority) to introduce forward-looking regulations
to promote sustainable growth of the industry. The bill gives a lot
of flexibility to the IRDA in framing regulations.
Due to the modification proposed in budget for service tax on fund
management charges, some guaranteed unit linked insurance
policies (ULIPs) will attract higher charges.
A very senior citizen category has been introduced at the age of 80
years and above with exemption limit of Rs.500, 000. Also
increase in income tax exemption limit to Rs.250, 000.for senior
citizens and the reduction in the age limit for senior citizens to 60
years will help seniors to enjoy pension in the retirement years
62
without
tax
impact.
NOTE:
The bills relating to the insurance sector has been pending for past
several. The Insurance Laws (Amendment) Bill, 2008 was
introduced in the Rajya Sabha in December 2008 and was referred
to the Standing Committee on Finance in September 2009.
Life Insurance Corporation (Amendment) Bill, 2009 was
introduced in the Lok Sabha in July 2009 and was referred to the
Standing Committee on Finance, which submitted its report in
March
2010.
Pension Fund Regulatory and Development Authority Bill was first

introduced in 005 It lapsed with the dissolution of the 14th Lok
Sabha .Insurance reforms in 2011-12 mainly depend on how soon
the government is able to get insurance related bills introduced &
passed. .
62
Private V/S Public Insurance Sector

Private players in the life insurance business are growing at a scorching
pace. Within three years of their inception, they have seized about 14 per
cent of the market.
Compare this to new generation private-sector banks, which took nine
years for 20 per cent share in the Indian banking industry. And after
seven years in the industry, in 2000, private mutual funds accounted for
just 9 per cent of a market that had been dominated by the Unit Trust of
India.
There's another dimension to the insurance numbers game. While the
private insurance companies have attained 13 to 14 per cent share of the
overall insurance market, their share in the key metros (Mumbai and
Delhi) is as high as 30 to 40 per cent.
"We have to struggle to complete a deal in the metros now, because
policyholders are comparing products and asking for better deals," says S
B Mathur, chairman of the Life Insurance Corporation of India.
Private insurance companies are essentially joint ventures with global
insurance companies holding a maximum of 26 per cent stake. The
foreign partners are investing heavily in the Indian market and, thereby,
62
driving sales, because they see India emerging as one of the biggest
markets in the Asian region.
Company Profile of LIC & ICICI Prudential
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.
Re- organization of LIC took place and large numbers of new
branch offices were opened. Today LIC functions with 2048 fully
computerized branch offices, 100 divisional offices, 7 zonal offices and
the corporate office. LICs Wide Area Network covers 100 divisional
offices and connects all the branches through a Metro Area Network.
62
LIC has tied up with some Banks and Service providers to offer on-line
premium collection facility in selected cities. LICs 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
Life Insurance Corporation of India is a wholly owned undertaking of the
Government of India. Life Insurance Corporation of India was
established by an Act of Parliament on 1st September, 1956. Its Central
Office is located in Mumbai. It also has seven zonal offices each located
62
in Mumbai(Western Zone), New Delhi (Northern Zone), Kanpur (NorthCentral Zone), Bhopal (Central Zone), Chennai (Southern Zone),
Hyderabad(South-Central Zone), and Kolkotta (Eastern Zone).
It has a network of over 2000(2048) branches and more than nine lakh
agents. Over 47 years, LIC has become a household name for providing
security for a lifetime and is synonymous to life insurance in India.LIC
ranks No.1 in the list of top 500 companies on the basis of Net
Worth(Rs. 15, 47, 951 million) as well as Net Profit(2,66,277 million)Dun & Bradstreet (India 500)
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."
Goals
Promote within the Corporation greater awareness of the changing
environment and the need to align the corporate policy to the emerging
situation. Help fashioning, within the constraints, its policies,
programmes, practices and products to meet the expectations of the
62
Public. Help the public to appreciate the performance and the limitations
of LIC.
Product offered by LIC

Insurance Plan
As individuals it is inherent to differ. Each individuals insurance needs
and requirements are different from that of the others. LIC insurance
plans are policies that talk to you individually and give you the most
suitable option that can fit customer requirements.
Children plan
Komal Jeevan - Plan No. 159
Children Deferred - Plan no.41
Jeevan Kishore - Plan no.102
Jeevan Chhaya - Plan no.103
Marriage Endowment/Educational Annuity - Plan No. 90
62
Jeevan Anurag - Plan no.168

Endowment Policy
Endowment with Profits - Plan no.14 Limited Payment Endowment with
Profits - Plan no.48
New JanaRaksha Policy - Plan no.91
Jeevan Anand Plan no. 149
Jeevan Mitra Triple Cover - Plan no.133
Group Insurance Policy
Group Insurance Scheme is life insurance protection to groups of people.
This scheme is ideal for employers, associations, societies etc. and
allows
You to enjoy group benefits at really low costs.
Janashree Bima Yojana
Group Insurance Scheme in lieu of EDLI
Group (Term) Insurance Scheme
Group Savings Linked Insurance Scheme
Group Superannuation Scheme
Group Mortgage Redemption Assurance Scheme
Joint Life Policy
62
Jeevan Saathi - Plan no.89

Money Back Policy
Money Back with Profit - Plan no.75
New Money Back - Plan no.93
Jeevan Surabhi 15 yrs - Plan no.106
Jeevan Surabhi 20 yrs - Plan no.107
Pension Plans or Annuities

Pension Plans are Individual Plans that gaze into your future and foresee
financial stability during your old age. These policies are most suited for
senior citizens and those planning a secure future, so that you never give
up on the best things in life.
New Jeevan Dhara - Plan no.148
New Jeevan Suraksha Plan no. 147
Jeevan Akshay II Plan no. 163
Jeevan Nidhi Plan no. 169
Jeevan Akshay V Plan no. 183
Special Plans
62
LICs Special Plans are not plans but opportunities that knock on your
door once in a lifetime. These plans are a perfect blend of insurance,
investment and a lifetime of happiness!
Term Assurance - Plan no.43
Jeevan Aadhar - Plan no.114
Term Policy
Convertible Term Assurance - Plan no.58
New Bima Kiran
Term Assurance
Anmol Jeevan I Plan No- 164
Amulya Jeevan-Plan No-177
Unit Plans
Unit plans are investment plans for those who realise the worth of hard
earned money.
These plans help you see your savings yield rich benefits and help you
save tax even if you don't have consistent income.
Market plus
62
Profit plus
Fortune plus
Money plus
Child fortune plus
The company assigned to me is ICICI Prudential Life Insurance

Company. It is in to selling life insurance products. ICICI Prudential Life
Insurance Company is a joint venture between ICICI Bank, a Premier
Financial Powerhouse and Prudential PLC, a leading international
financial services group headquartered in the United Kingdom. ICICI
Prudential was amongst the first private sector insurance companies to
begin operations in December 2000 after receiving approval from
Insurance Regulatory Development Authority (IRDA). At present it is
62
growing at a tremendous pace. Now we can say there is no close

competitor to ICICI Prudential.
For the past five years, ICICI Prudential has retained its position as No. 1
private life insurance in the country, with a wide range of flexible
products that meet the needs of Indian customer at every step in life. The
company mainly depends on advisors.
The advisors are considered as the brand ambassadors of the company or
the working partner who doesnt have to invest to get returns but just
work with the company to make money. Advisors main job is to sell
policy and in return the advisors get huge return like high commission,
rewards, recognition etc. He is, for all purposes, an authorized salesman
for insurance.
Advisors can become the Unit Manager of the company if they pass the
pinnacle program. ICICI Prudential has recruited and trained about
56,000 insurance advisors to interface with and advise customers.
Further, it leverages its state-of-the-art IT infrastructure to provide
superior quality of service to customers.
Manager will get a fixed salary and the commission on the policies sold
by his advisor and the commission of the policies which he has already
sold. Tiger team manager is one who gets to sell the policy and get
commission, train the advisors about the product and he is also a paid up
employee of the company.
VISION
62
To be the dominant Life, Health and Pensions player built on trust by

world-class people and service
VALUES
Very member of the ICICI Prudential team is committed to 5 core
values: Integrity, Customer First, Boundary less, Ownership, and
Passion. These values shine forth in all we do, and have become the
keystones of our success
Products Offered By ICICI Prudential

ICICI Prudential has a wide array of insurance plans that have been
designed with the philosophy that different individuals are bound to have
differing insurance needs.
The ideal insurance plan is one that addresses the exact insurance needs
of the individual that will depend on the age and life stage of the
individual apart from a host of other factors.
Life Insurance Plans
Under Life insurance plans, ICICI Prudential offers plans under the
following
Education Insurance Plans
62
Wealth Creation Plans

Premium Guarantee plans
Protection Plans
Pension & Retirement Solutions:

The primary objective of a pension plan is to help you provide for your
financial needs in your post retirement years. You will find a Pension
Planning Calculator on the site, meant to make your pension plan review
as simple as possible. The calculator is the first step in your Pension Plan
scheme; there are other steps towards getting the Indian pension policy
you need.
Life Stage Pension

Lifetime Super Pension
Lifeline Super Pension
Forever Life
Health Product Suite

Under Health Product Suite, ICICI Prudential offers plans under the
following major need categories:
62
Hospitalisation Plans
MediAssure
Hospital Care
Critical Illness Pans
Crisis Cover
Cancer Products
Cancer Care
Diabetes Products
Diabetes Care Active
Diabetes Assure
Retirement Solutions
ICICI PRUDENTIAL Provide a wide range of retirement plans and they
are as follows
Life Stage Pension
Lifetime Super Pension
Lifeline Super Pension
Forever Life
62
Immediate Annuity
Group Plans
ICICI Prudential offers a suite of group insurance plans that are as
follows:
Group super annuation
Group gratuity period
Annuity solution plan
Group term insurance plan
Group term insurance in lieu of EDL
LIC New Jeevan Suraksha VS ICICI Prudential Forever

life
LICs New Jeevan Suraksha I offers cool comfort to serve the

young, the middle aged and the old which has also the security and
safety backing of Government of India. It is an ideal solution for people
as it not only offers retirement benefits but also takes care of our
protection needs (with term rider option). To combat the increase in
longevity, this plan provides regular guaranteed income at old age and
62
helps in planning to meet requirements for current and future needs. This
plan provides a lot of flexibility in terms of various pension options for
you to choose from. Additionally you can also opt for an insurance cover
during the deferment period by taking the Term Rider adds on. At the
end of the deferment period when the premium ceases, this policy can, at
your option, pay you a lumpsum amountand a suitable pension for your
lifetime.
The similar product marketed by ICICI Prudential Life Insurance

Company is Forever Life, a comprehensive retirement solution that is
developed keeping in mind your capabilities and needs with respect to
your retirement planning.
The salient features of this plan are as under: A deferment pension plan
to build up your retirement benefits.
(i)
It provides regular income for life, after a stipulated date.
(ii) The amount you receive depends on the premium you pay till the
stipulated date and the option you choose.
62
(iii)
It also offers life cover during the deferment period.
(iv)
Postponement of retirement age
(v)
Health cover till age 65 through add-on benefits, not only

while Paying premium, but also while receiving pension
Innovation Strategy and IT in LIC &ICICI

Prudential
INNOVATION STARTEGY IN LIC
62
LIC has realized the importance of personal involvement and has

included it in the training program itself. Once the Agent is recruited he
needs to undergo a compulsory training program designed by LIC. The
Training
Program also explains them the importance of the smallest of the
customer .i.e. customer who is just seeking general information.
The Agents and employees are trained to Apologise to its customers even
if they are not at fault.
SO IT DOSENT TAKE MUCH OF TIME FOR THE HANDS OF
THE LIC LOGO TO COME CLOSER FOR APOLOGY.
LIC has established elaborate Grievance Redressal Machinery at
different level as per the customer requirement. There are Complaint
cells which are specially set up to listen up to each and every customers
problems. LIC gas also set up Policyholder Councils and Zonal Advisory
Boards to understand the problems of their customer situated in any part
of the city.
Offers a Fair Fix to Problem:

Customers want wrong to be set right and expects service contact
employee to be skilled, empowered and interested in setting things right.
62
This is the main reason why LIC conducts training programs for the
newly recruited Agents as well as the other Employees. In any kind of
breakdown situations LIC try to offer a rational explanation and
demonstrate sensitivity and concern to the customer rather than
defending themselves.
Offers Some Compensation for the Inconvenience:
Compensation here wouldnt mean of just monetary compensation or
some extreme measures like firing the Branch Manager Etc; but it is just
to makeup for the loss of customer satisfaction. It could be like its on
us; free service etc. The service provider should plan certain
compensation policies in advance for various types of situations and
deliver it as and when the situation is faced.
Follow Up:
This is the most important step in Service Recovery as it ensures that
whether the implemented Service Recovery was Satisfactory or not. It
would include Internal and External Follow-up. Internal Follow-up
would be to ensure that the solutions they put in motion are actually
executed and the
External part would be to get feedback from the customer whether he is
satisfy
INNOVATION STRATEGY IN ICICI

An innovation refers to any good, service, or idea. That is perceived by
someone as new. The idea may have long history, but it is an innovation
62
to the person who sees it as new. Innovation takes time to spread through
the special system.
The consumer adoption process focuses on the mental process through
which an individual passes from first hearing about an innovation to final
adoption. Adopters of new products have moved through the following
five stages.
1. Awareness: The consumer becomes aware of the innovation but lacks
information about it.
2. Interest: The consumer is stimulated to see the information about the
innovation.
3. Evaluation: The Consumer considers whether to try the innovation or
not.
4. Trial: The consumer tries the innovation to improve his estimate of its
value.
5. Adoption: The consumer decides to make full and regular use of the
innovation
IT in LIC
62
In todays world, IT is a must for any industry to keep pace with the
customers changing expectations. This is especially relevant in the
service industry. The insurance sector has to ensure that the technology it
chooses does not lag behind where customer expectations are concerned.
LIC has more than 16 crore policy holders. So it has to induct the best IT
products available and use them to cater to the needs of the customers
and deliver anywhere any time service on demand and to add value to its
new products. The trust and the goodwill of the customer gained in the
last 50 years have to be consolidated by making all activities more
customers focused.
For instance, LIC has a corporate Web site to provide information on
products, services, policy status, grievances and premium calculator.
Other facilities include touch-screen information kiosks at central
locations to provide 24 x 7 inquiry services to customers.
IT in ICICI Prudential
62
The Information technology function at ICICI Prudential is committed to

enable a business through the use of technology. It is segmented into 4
groups to enable highest level of delivery of customer. Life Asia
Solution Group that provide flexibility in designing better product
offering to end user, the solution group- Web that provide real time
information to customer and is responsible for customer relationship
management, IT Architecture & corporate solution group is in charge of
developing and marinating a blue print for the IT architecture for the
enterprise as whole. This team work as an in house R&D solution group,
exploring new technological initiatives and also caters to information
needs of corporate function in the organization. IT infrastructure group is
responsible for providing hardware, software, network service to the
whole organization. This group run at Digital nervous system of the
enterprise at the highest level of efficiency and provide robust, scalable
and highly available platform for development business application
Emerging Trend in LIC & ICICI Prudential
62
EMERGING TREND IN Life Insurance

Corporation
With the emergence of competition, LIC has implemented strategic
moves for business growth, as well as ensured quality improvement in
service standards. As on today, they have been providing service to
around 12 crore policy holders and their track has been well
acknowledged as reflected through continual up gradation of service
standards culminating into a world class performance in the area of claim
settlement operations.
LICs strength lies in:
a. Wide network of branches covering rural areas.
b. A large and well- spread agency organization.
c. An acknowledged record of performance.
d. Adequate yield with high risk cover being offered keeping the policy
holders satisfied in the existing in the economic scenario.
e. Well accepted brand equity throughout the country.
In addition to this, LIC has an established and well administered

Grievance Redressed Mechanism and with Ombudsman intervention, the
customers appear to be well attended. However, this mechanism has to
62
be restructured keeping in view the additional legal provisions laid down

by the regulator as expounded in the IRDA act.
Futuristic Approach
Till today, LIC enjoyed a monopoly. It is now that reality exists in the
are of marketing (i.e. sales and after sales service operations). It will now
have to follow a multi-faceted strategy towards customer retention and
also expanding to a new clientele. With the new face of the market,
relationship management seems to be the new mantra.
At the nucleus of this approach is the concept of Customer Relationship
management. The need is to have a comprehensive review of the
business keeping in view customer expectations
Customer Orientation
LIC, to be in the reckoning, has to have an efficient feed-back system, so
as to understand what the customer desires in terms of product design,
service procedures, relationship convenience, accessibility, responses in
terms of personalized service, attendance, core and complimentary on an
individual basis.
The new players in the market like ICICI, HDFC etc. will definitely be
very aggressive in the open market. LIC has to go ahead with their
former customers, existing customer, in a very gentle and courteous
manner, reassuring them of their better services with persona, attention.
62
ADVERTISING TRNED IN LIC

News Papers and Magazines
LIC give ads in the news papers and magazines round the year to
continue its brand image and also when new products are introduced.
Normally its ads are published in Times of India.
Television
Companies like LIC, advertise on television to make people aware of
Their products and services
Advertisement on Radio satellite channel
Advertisement about LIC are frequently been telecast on radio and
satellite channel.
EMERGING TREND IN ICICI PRUDENTIAL
In a significant move, ICICI Prudential Life Insurance a joint venture
between the ICICI group and Prudential Plc of the UK has expanded
its marketing platform for promoting life insurance products to 1,500
banks branches from 642 branches through its existing bancassurance
tie-up with seven banks.
With this, ICICI Prudential has increased the number of bank branches
(under banc assurance tie-ups) by about 130 per cent. In fiscal 20022003, the number of bank branches networked by the company grew by
270 per cent to 642 branches. Of these, 338 branches were from four new
banc assurance relationships which it had forged with Allahabad Bank,
South Indian Bank (SIB), Federal Bank and Lord Krishna Bank.
62
The remaining expansion is from earlier relationships, notably ICICI

Bank and Bank of India (BoI), ICICI Prudential chief-marketing Saugata
Gupta told FE.
ADVERTISING TREND IN ICICI
Radio:
ICICI Prudential advertises on 92.5 red Fm
Television
ICICI Prudential has been advertising in outdoor, TV and press. The
company launched a corporate television campaign Saat Phere which
took the emotions and thoughts of initial Sindoor corporate film a few
steps further
Seminars
ICICI Prudential regularly holds consumer awareness meets on =the
need for retirement planningin different cities such as Pune,
Aurangabad, Coimbatore, Nagpur, Bangalore and Mangalore.
CONCLUSION
62
Competition will surely cause the market to grow beyond current rates,
create a bigger "pie," and offer additional consumer choices through the
introduction of new products, services, and price options. Yet, at the
same time, public and private sector companies will be working together
to ensure healthy growth and development of the sector. Challenges
such as developing a common industry code of conduct, contributing to a
common catastrophe reserve fund, and chalking out agreements between
insurers to settle claims to the benefit of the consumer will require
concerted effort from both sectors.
The market is now in an evolving phase where one can expect a lot of
actions in coming days. The current impediments for foreign
participation like 26% equity cap on foreign partner, ill defined
regulatory role of IRDA
(Insurance Regulatory development Authority- the watchdog of the
industry) in pension business etc.are expected to be removed in near
future. The early-adopters will then have a clear advantage compared to
laggards in Gaining the market share and market leadership. The will
need to make sure right now that all their infrastructure is in place so that
they can reap the benefit of an "unlimited potential."
Bibliography
62
Life-Insurance, by Mc GILL
Insurance Industry by ICFAI Publication
Insurance in India
Important Website
www.icicipreduntial.com
www.licindia.com
www.scribid.com
www.google.co.in
Newspaper
Times of India
The economic times.
62

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LIC V/S PRIVATE LIFE INSURANCE COMPANIES

Present scenario of insurance industry

Trends in insurance sector

Impact of budget on insurance sector

Pvt V/S Public insurance sector

Company profile of LIC & ICICI

Innovation strategy & IT

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

Up to end of 19th century, the insurance was in the inspectional

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

"To protect the interests of the policy holders, to regulate, promote

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

Private Players in Indian Life Insurance

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

* MetLife India Insurance Company Pvt. Ltd.,

'Prevention of Loss', 'Assured Returns' and 'Long term Investment'

Most of the Indians are of the opinion that private insurance

Most of the Indians are interested in 'Money back' policies than

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

Most of them are interested in insuring for an amount of Rs. 1- 2

There is significant relationship existing between monthly

Based on the monthly household income, Indians prefer to their

Agents are mostly responsible for selling insurance products in

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

In the words of John MageeInsurance is a plan by themselves which

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

In the words of justice Tindall, Insurance is a contract in which a sum

INSURANCE INDUSTRY: CLASSIFICATION

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

According to the IRDA's Summary Reports of Motor Data of Public and

Life insurance corporation

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

State-owned Life Insurance Corporation (LIC) of India, the largest and

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

percent as foreign insurers did. Its general insurance counterpart, Indian

The government resolved to first take over the management of life

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

in 1973 to Rs 5,956 crore in 1995- 96. Yet, rigid controls hamper

Allianz Bajaj Life Insurance Co

Aviva Life Insurance

Birla Sun Life Insurance Co

HDFC Standard Life Insurance

Life Insurance Corporation of Public

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

SBI Life Insurance Co

TABLE 2. NAME OF THE PLAYER MARKET SHARE (%)

Market share (%)

BIRLA SUN LIFE

SBI LIFE INSURANCE

MAX NEW YARK

LIC V/S PRIVATE LIFE INSURANCE COMPANIES

PRESENT SCENARIO OF INSURANCE

Consumers remain the most important centre of the insurance

LIC V/S PRIVATE LIFE INSURANCE COMPANIES