A

PROJECT REPORT
ON
“CAMPARATIVE STUDY OF
LIFE INSURANCE CORPORATION OF INDIA’’

SUBMITTED IN PARTIAL FULFILMENT OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

RANI DURGAVATI VISHWAVIDYALAYA, JABALPUR

UNDER THE SUPERVISION OF

PROF./DR. …………(GUIDE NAME)……………

SUBMITTED BY:

Shubham sahu

MBA III SEMESTER

ENROLLMENT NO.-R2000328470003 ROLL NO. -23135782

SESSION: 2024

BADERIA GLOBAL INSTITUTEOF

ENGINEERING AND MANAGEMENT, JABALPUR
1
INTERNSHIP CERTIFICATE

2
 BADERIA GLOBAL INSTITUTE
OF
ENGINEERING AND MANAGEMENT

(DEPARTMENT OF MANAGEMENT STUDIES)

STUDENT DECLARATION
I Shubham Sahu hereby declare that the project report entitled
“Comparative Study of Life Insurance of India” submitted in partial
fulfillment of the requirement for the degree of Master of Business
Administration to Rani Durgavati Vishwavidyalaya, Jabalpur.
This is my original work and that no part of this report has been submitted
for the award of any other Degree, Diploma, Fellowship or other similar
titles or prizes and that the work has not been published in any journals or
magazines.

Date: Name – Shubham Sahu

Roll No.- 23135782
Enrollment No.-R2000328470003
BGIEM, JABALPUR

3
 ACKNOWLEDGEMENT
Co-operation and building up of moral are the essence of success. These are two factors that go a
long way in achieving it. It is a Herculean task, which lacks these two determinants of success. This
internship was an exposure to corporate environment. It was an opportunity and great pleasure for
me to be in such an environment and having interaction with concerned people.
I am highly obliged to Mr. Arun kumar Gupta (Development officer, LIC Jabalpur DBO 374
branch) who provided me the opportunity for doing my Internship at LIC, and would like to thank
him for their guidance and help which had made it possible for me to complete my project work
successfully.
Finally, I would like to thank,…………………. my project guide at the institute, for their
enlightening and meticulous guidance for the consummation and evaluating of this project.
I extend my gratitude to the employees of LIC and all the individuals who took time to participate in
surveys, interviews, or provided information for this study. Their cooperation and willingness to
share their perspectives have been integral to the success of this project

Name of Student – Shubham sahu

Enrollment Number – R200032870003
Roll Number – 23135782

4
 BADERIA GLOBAL INSTITUTE
OF
ENGINEERING AND MANAGEMENT

(DEPARTMENT OF MANAGEMENT STUDIES)

CERTIFICATE OF GUIDE
This is to certify that the project report titled “Comparative Study of Life
Insurance of India” Submitted by Shubham Sahu (Roll No. 23135782
Enrollment No. R2000328470003 of MBA III semester) in partial
fulfillment of the requirement of the degree of Masters of Business
Administration of RDVV has worked under my supervision and guidance.
The candidate is regular student of our institution.

This report is up to the standard both in respect of its contents and literacy
presentation for being referred to all examiners.

Date: (Guide Name)

BGIEM, JABALPUR

5
 BADERIA GLOBAL INSTITUTE
OF
ENGINEERING AND MANAGEMENT

(DEPARTMENT OF MANAGEMENT STUDIES)

CERTIFICATE OF HOD
This is to certify that the project report titled “Comparative Study of Life
Insurance of India” Submitted by Shubham Sahu of MBA III semester
may be accepted towards partial fulfillment of Masters of Business
Administration with specialization in Marketing and Finance

DATE: DR. SHAILENDRA BASEDIA

HOD-MBA
BGIEM, JABALPUR

6
 INDEX

SL.NO. TITLE PAGE NO.

01 EXECUTIVE SUMMARY 08
02 OBJECTIVES OF THE STUDY 10
03 INTRODUCTION OF TOPIC 12
04 COMPANY PROFILE 14
05 DATA ANALYSIS & INTERPRETATION 21
06 FINDINGS 32
07 SUGGESTIONS 40
08 CONCLUSIONS 42
09 ANNEXURE/ QUESTIONNAIRE 45
10 WEBLIOGRAPHY AND BIBLIOGRAPHY 55

7
EXECUTIVE
SUMMARY

8
 EXECUTIVE SUMMARY

Someone has greatly said that practical knowledge is far better than classroom teaching. During this
project I fully realized this and come to know about the present real world of Insurance sector. It
includes all the activities involved in providing insurance products to the final customers. I am
pleased to know about the consumers’ wants and competitors activities in the real world of
Insurance.

The subject of my study is to analyze the present insurance sector and products offered by LIC by
applying various tools like cold calling and through direct interaction with customer’s. I have also
done research on the growth of private life insurance companies in the last five years.
The report contains first of all brief introduction about the company. Then it contains the current
status of private insurance companies and foreign insurance companies in India.

I also put forward recommendations of the consumers and conclusions that will help LIC to provide
consumer satisfactory services in the insurance sector.

9
 OBJECTIVE OF THE STUDY

The report gives the brief background of the sector and proceeds to highlight the short comings of
the existing setup and players. The benefits of liberalized sector are enumerated. The report also tries
to identify the market potential for insurance products and the strategy that can we employed to
exploit the same. The stress is also given on knowing the awareness level of general public.

To evaluate the market position of LIC in the Indian life insurance industry, and compare it
with that of its main competitors (e.g., HDFC Life, ICICI Prudential Life, SBI Life, etc.).

To analyze the product portfolio of LIC and compare it with the offerings of its competitors,
focusing on the diversity, innovation, and coverage provided by different life insurance products

To assess the financial performance of LIC in terms of revenue, profitability, assets under
management (AUM), and solvency ratio, and compare these financial metrics with leading
private insurance companies in India

To study the customer satisfaction levels associated with LIC's services, such as claim
settlement ratio, response time, policy renewal processes, and compare these factors with those of
other major insurance companies

To identify the strengths and weaknesses of LIC relative to its competitors in areas such as
customer service, digital transformation, marketing strategies, and product innovations.

To examine the growth trends of LIC in comparison to the growth of its competitors in the
Indian insurance market over the past few years

To understand the impact of regulatory changes (e.g., IRDAI regulations, taxation policies,
etc.) on LIC’s operations and compare how these changes affect LIC in relation to its competitors

10
To explore the future growth prospects of LIC in the Indian life insurance industry,
considering factors like market trends, evolving customer preferences, and technological
advancements.

To provide recommendations for LIC to maintain or improve its competitive position in the
rapidly changing insurance landscape.

To Analyze the Performance of LIC

o Examine the financial growth, market share, and operational efficiency of LIC in the
Indian insurance sector.

To Compare LIC with Private Insurance Companies

o Evaluate the competitive positioning of LIC with respect to private insurers in terms
of claim settlement ratios, product portfolios, customer service, and technological
advancements.

To Identify Challenges and Opportunities

o Highlight the challenges faced by LIC due to competition, regulatory changes, and
evolving customer preferences, while identifying potential growth opportunities.

11
INTRODUCTION OF
TOPIC

12
 INTRODUCTION OF TOPIC

The life insurance industry in India plays a pivotal role in the financial sector, offering not only
financial security to individuals but also contributing significantly to the country’s economic
development. The sector has evolved remarkably since its inception, and today it includes a mix of
both public and private players offering a wide array of insurance products. The Life Insurance
Corporation of India (LIC), established in 1956, has been the largest and most prominent player in
the Indian life insurance market for decades.

LIC, a public sector company owned by the Government of India, has enjoyed a dominant market
position in the life insurance space. With its strong brand value, a vast network of agents, and a wide
range of products, LIC has earned the trust of millions of policyholders over the years. Despite its
dominance, the rise of private insurance companies after the liberalization of the insurance sector in
2000 has led to increased competition. These private players, backed by foreign investments, have
introduced innovative products, competitive pricing, and advanced customer service models, posing
challenges to LIC's market leadership.

The comparative study of LIC and its competitors in the Indian life insurance market is a crucial
area of research, as it helps assess how LIC is coping with this growing competition. By examining
various aspects such as market share, financial performance, customer satisfaction, product
offerings, and growth strategies, the study will provide a comprehensive understanding of LIC’s
position relative to other major players in the market.

This comparative analysis also offers valuable insights into the strategic actions that LIC could take
to maintain or improve its market position. Furthermore, the study will highlight potential
opportunities for LIC to innovate and strengthen its product portfolio and customer experience in
response to the evolving needs of consumers.

The comparative study aims to answer critical questions regarding LIC’s competitive strengths and
weaknesses, how it stands against private insurers, and what strategic decisions it could make to
sustain its position in the market. Given the increasing diversification in the insurance sector,
understanding these factors is essential not only for LIC’s growth but also for the long-term
sustainability of the industry as a whole.

This study will contribute to the understanding of LIC's market dynamics and provide insights into
the strategies required for it to remain competitive in a rapidly changing industry.

13
 COMPANY PROFILE

“LIFE INSURANCE CORPORATION OF INDIA (LIC)

Life Insurance Corporation of India (LIC) was formed in September, 1956, by an Act of Parliament,
viz., Life Insurance Corporation Act, 1956, with capital contribution from the Government of India.
The then Finance Minister, Shri C.D. Deshmukh, while piloting the bill, outlined the objectives of
LIC thus to conduct the business with the utmost economy, and a spirit of trusteeship; to charge
premium no higher than warranted by strict actuarial considerations; to invest the funds for obtaining
maximum yield for the' policy holders consistent with safety of the capital; to render prompt and
efficient service to policy holders, thereby making insurance widely popular. Since nationalization,
LIC has built up a vast network of 2,048 branches, 100 divisions and 7 zonal offices spread over the
country. The Life Insurance Corporation of India also' transacts business abroad and has offices in
Fiji, Mauritius and United Kingdom. LIC is associated with joint ventures abroad in the field of
insurance, namely, Ken-India ,Assurance Company Limited, Nairobi; United Oriental Assurance
Company Limited, Kuala Lumpur and Life Insurance Corporation (International) E.C. Bahrain. The
Corporation has registered a joint venture company in 26th December, 2000 in Katmandu, Nepal by
the name of Life Insurance Corporation (Nepal) Limited in collaboration with Vishal Group Limited,
a local industrial Group. An off-shore company L.I.C. (Mauritius) Off-shore Limited has also been
set up in 2001 to tap the African insurance market.

General Insurance:

General insurance business in the country was nationalized with effect from 1st January, 1973 by the
General Insurance Business (Nationalization) Act, 1972. More than 100 non-life insurance
companies including branches of foreign companies operating within viz., the National Insurance
Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd., and
The United India Insurance Company Ltd. with head offices at Calcutta, Bombay, New Delhi and
Madras, respectively. General Insurance Corporation (GIC) which was the holding company of the
four public sector general insurance companies has since been delinked from the later and has been

14
approved as the "Indian Reinsurer" since 3rd November 2000. The share capital of GIC and that of
the four companies are held by the Government of India. All the five entities are Government
companies registered under the Companies Act, 1956. The general insurance business has grown in
spread and volume after nationalization. The four companies have 2699 branch offices, 1360
divisional offices and 92 regional offices spread all over the country. GIC and its subsidiaries have
representation either directly through branches or agencies in 16 countries and through associate
locally incorporated subsidiary companies in 14 other countries. A wholly- owned subsidiary
company of GIC, i.e. Indian International Pvt. Ltd. is operating in Singapore and there is a joint
venture company, viz. Ken-India Assurance Ltd. in Kenya. A new wholly owned subsidiary called
New India International Ltd., UK has also been registered

Insurance plans:

As individuals it is inherent to differ. Each individual’s insurance needs and requirements are
different from that of the others. LIC’s Insurance Plans are a policy that talk to you individually and
gives the most suitable options that can fit ones’ requirement.

• Jeevan Tarun
• Amrit Baal

• New Endowment
• New Jeevan Anand
• Jeevan Lakshya
• Jeevan Labh
• Bima Jyoti

15
 Micro Plan

• Micro bachat

• (New Money Back 20 year)

• Jevan Umang
• Jeevan Utsav

• New Jeevan Amar

• Yuba Term

Pension plus

• Jeevan Shanti plus

• Jeevan Akshay VII

Unit plans:
Unit plans are investment plans for those who realize the worth of hard-earned
money. These plans help you see your savings yield rich benefits and help you save

16
tax even if you don’t have consistent income.

• Index plus

• Nivesh plus

• Pension plus

Singal premium Plan

• Singal Endowment Plan

17
 OBJECTIVES OF LIC

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.

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CURRENT STANDING OF PRIVATE LIFE
INSURANCE COMPANIES IN URBAN SECTOR

Life insurance is possibly the most- retail of all financial services, and is required by
people of all segments and in all locations. At a broad level, ICICI Prudential aims to
secure the families of the middle and upper class working people in urban India. To
this end, they have pursued a pan-India distribution strategy and backed it up with a
range of products that meets the needs of a wide range of people, be they from rural or
urban areas. Today, they have branches in 74 locations and rural presence in more
than 15 states. Certainly, the majority of the business still comes from urban areas
such as metros and mini-metros. However, they have seen rural business grow
significantly and expect it to continue making greater contribution in the years to
come.

19
ROLE OF FOREIGN COMPANIES IN INDIA

Government has allowed 26% foreign equity participation in the insurance sector.
This has its limitations. While most foreign insurers planning to start their services in
India were not pleased by this condition, they reluctantly agreed that this was
expected in an opening economy and this will not change their outlook for India.
After all no insurance company can afford to ignore a market of 1bn people. But the
fact remains that they:

• Can not appoint majority directors on the company board;

• Can not have say in the day to day workings of the company;
• Can Affect Only Special Resolutions.
This cap, however, will have a great impact on the Indian counter part to raise 74% of
the funds in their joint venture. To add to this if Indian partners like State bank of
India, with over 9000 branches nationwide, will demand premium for their existing
distribution network, we will see the foreign insurance companies demand hefty
premiums for bringing in their global expertise and brand. Mr. Vaidya, Chairman of
SBI, has recently stated that all it is looking for is a good and reliable partner and the
question of a hefty premium to be charged to its foreign partner is not significant. The
monolith has finally come to business senses foreign companies are unhappy even
about laws pertaining to repatriation of funds. The Stipulated investment criteria is
also something that all players in the sector, be it Indian or foreign, are closing
watching.
The foreign players are essentially looking to tap their" global expertise in the variety
markets and use that know-how to work in the Indian scenario. Designing of products,
information systems, technical expertise, manpower planning etc is what one expects
the foreign players to have a say in.
Any venture of the joint kinds needs to be between equals. If this is not there then
there is every chance that a partner in the venture will feel increasingly uncomfortable
and would be looking to call the joint venture off.

20
 DATA ANALYSIS
AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

Analysis of data means studying the tabulated material in order to
determine inherent facts or meaning. It involves breaking down of
complex factors into simple parts and putting the parts together in new
arrangement for the purpose of interpretation. It is a careful, logical and
critical examination of the result obtained after analysis, keeping in view
of the limitations of the sample chosen and tools used for analysis.

21
 Table No: 1.1

Number of life policy holders

OPINION NUMBERS
Yes 78
No 22
Total 100

Yes
No

Interpretation: Majority of the respondents have insured their life to

avoid the risk in future. Out of this less than 13% have adopted the life
insurance as a tax saving tool. It is noted that 22% of the respondents are
not insured their life, due to their lack of awareness

22
 Table No: 1.2

Preferred Insurance provider

NAME OF POLICY NUMBERS PERCENTAGE

SBI 1 1.06
LIC 50 53.19
HDFC 15 15.95
JEEVAN REKSHA 2 2.12
IDBI FEDERAL 2 2.12
ICICI 6 6.38
AVIVA 12 12.76
TECH MAHINDRA 2 2.12
TATA 2 2.12
BAJAJ 1 1.06
STAR HEALTH 1 1.06
TOTAL 94 100

SBI
LIC
HDFC
JEEVAN REKSHA
IDBI FEDERAL
AVIVA
ICIC
TECH MAHINDRA

Interpretation: According to the analysis, most of the policy

holders preferred LIC because of trust worthiness and the
awareness. LIC is a private sector provider and very high as
compared to other company because other company have less
number of policy holders and market experience is low. So the
awareness about their products in the market is also very less.
ICICI prudential stands in the 4th position among the private sector
provider.

23
 Table No: 3.3

NUMBER OF INSURANCE POLICY OPTED

OPINION NUMBERS

ONE 78
MULTIPLE 16 ( among the 78)

One
Multiple

Interpretations: Most of the respondent’s expectation is to avoid

risk for future in life. So we choose the opted insurance policy,
more than 20% were opted multiple insurance policy and they also
have more attracted tax savings.

24
 Table No: 3.4

TIME PERIOD OF HOLDING THE POLICY

POLICY NUMBERS PERCENTAGE

PERIOD
1 - 5 YEAR 46 58.97
6-10 YEAR 22 28.20
11-15 YEAR 6 7.69
16-20 YEAR 4 5.13
TOTAL 78 100

1-5 YEAR
6-10 YEAR
11-15 YEAR
16-20 YEAR

Interpretations: The time period of holding an insurance policy has been

increasing. People prefer to have policies for a short term period. Where
as only 5.13% of people have policy for long term period.

25
 Table No: 3.5

AMOUNT INSURED

AMOUNT NUMBERS PERCENTAGE

1-5 LAKH 56 71.79

6-10 LAKH 16 20.51
11-15 LAKH 5 6.41
16-20 LAKH 0 0
21-25 LAKH 1 1.28
TOTAL 78 100

Interpretations: More number of insurance policy holders have invested

1-5 Lakh rupees in insurance. Which is almost 71.79% these people have
selected low amount of insurance due to the benefits and also they do not
prefer invest large amount in insurance premium.

26
 Table No: 3.6

EXTRA BENEFIT OBTAINED FROM INSURANCE

POLICY

OPINION NUMBERS PERCENTAGE

YES 37 47.43
NO 41 52.56
TOTAL 78 100

Interpretations: Only 47.43% of people have obtained additional

benefits from insurance policies, While 52.56% of them have not
obtained any benefits. Because lack of awareness of the insurance
policies and other benefits.

27
 Table No: 3.7

REASON FOR CHOOSING LIFE INSURANCE POLICY

OPINION NUMBERS PERCENTAGE

Sum assured 11 14.10

Scheme are good 6 7.69
Recommendation from 21 26.92
family & friends
Save tax 10 12.82
Multibenefits 30 38.46

TOTAL 78 100

Interpretations: The insurance policy holders have been choosing

insurance policies due to multiple benefits. Which constitute about
38.46% while 14.10% of insurance holders prefer to have it because the
sum assured or return of the insurance.

28
 Table No: 3.8

OPINION AFTER INVESTING IN LIFE INSURANCE.

OPINION NUMBERS PERCENTAGE

GOOD 44 56.41
AVERAGE 34 43.58
Poor 0 0
TOTAL 78 100

Interpretations: 43.58% of them have an average opinion after investing

in insurance. The general public are to be made more aware of the
benefits of investing in insurance.

29
 Table No: 3.9

IS THE POLICY HOLDER AWARE OF THE INCOME TAX ACT

1961 WHILE OPTING THE LIFE INSURANCE POLICY.

OPINION NUMBERS

YES 50
NO 28
TOTAL 78

Interpretations: 50 individuals are aware about the income tax act, 1961
while opting for life insurance policy whereas 28 respondents of the study
are unware of the act.

30
 CHIE – SQUARE TEST

OBSERVED EXPECTED ( O – E) ( O – E)2 ( O – E)2/ E

11 100 89 7921 79.21

6 100 94 8836 88.36

21 100 79 6241 62.41

10 100 90 8100 81

30 100 70 4900 49

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 FINDINGS
AND
SUGGESTIONS
32
 FINDINGS

A project report titled "Comparative Study of LIC (Life Insurance Corporation)"

typically includes findings that focus on analyzing the performance, market position,
products, services, and customer perceptions of LIC compared to other insurance
providers. Below are some common findings that could be included in such a report:

1. Market Position

• LIC holds a significant share of the Indian life insurance market due to its
legacy, trust, and extensive reach.
• Competitors like private insurers (e.g., HDFC Life, ICICI Prudential, SBI
Life) have grown rapidly in recent years, particularly in urban markets.

2. Product Portfolio

• LIC offers a diverse range of products, including traditional life insurance,

term plans, ULIPs, and pension plans.
• Private insurers may provide more innovative or customized products,
focusing on flexibility and investment benefits.

3. Customer Trust and Loyalty

• LIC has strong customer trust due to its government backing, long history, and
reputation.
• Private insurers often emphasize customer-centric services, digital
convenience, and faster claim settlement to attract tech-savvy and younger
customers.

4. Premium Pricing

• LIC's premium rates are often perceived as slightly higher compared to private
insurers, particularly for term plans, due to the benefits and bonuses provided.
• Private players tend to offer competitive pricing, sometimes with more
benefits.

5. Technology Integration

• LIC has improved its digital services but still faces challenges compared to
private insurers that have fully embraced technology for premium payments,
policy servicing, and customer interactions.
• Private insurers are leaders in using AI and data analytics to personalize
offerings and enhance customer experience.

33
6. Claim Settlement Ratio

• LIC traditionally maintains the highest claim settlement ratio, instilling trust
among policyholders.
• While private players have improved their ratios, they still trail LIC in this
metric.

7. Rural vs. Urban Penetration

• LIC has a strong presence in rural areas, leveraging its extensive agent
network.
• Private insurers dominate urban markets with targeted marketing and tech-
driven strategies.

8. Marketing and Advertising

• LIC relies on its established brand and agent network for marketing.
• Private insurers invest heavily in digital marketing, celebrity endorsements,
and campaigns tailored for millennials and Gen Z.

9. Operational Efficiency

• LIC faces challenges with its legacy systems and large workforce, which can
slow down operations.
• Private insurers operate with leaner structures and agile processes, ensuring
quicker service delivery.

10. SWOT Analysis of LIC

Strengths:

• Brand trust, extensive network, government backing.

Weaknesses:

• Outdated processes, limited innovation in product design.

Opportunities:

• Expanding digital footprint, targeting youth and underserved markets.

Threats:

• Competition from private insurers, changing customer expectations.

34
IMPORTANCE OF JOINT VENTURES
HDFC STANDARD LIFE INSURANCE COMPANY LIMITED

HDFC
Incorporated in 1977 with a share capital of Rs. 10 crores, HDFC has since emerged
as the largest residential mortgage finance institution in the country. The corporation
has had a series of share issues raising its capital to Rs. 119 crores. The net worth of
the corporation as on March 31, 2000 stood at Rs. 2,096 crores.
HDFC operates through 75 locations throughout the country with its Corporate
Headquarters in Mumbai, India. HDFC also has an international office in Dubai,
V.A.E., with service associates in Kuwait, Oman and Qatar.

Standard Life

Standard Life is Europe's largest mutual life assurance company. Standard Life, which
has been in the life insurance business for the past 175 years, is a modern company
surviving quite a few changes since selling its first policy in 1825. The company
expanded in the 19th century from its original Edinburgh premises, opening offices in
other towns and acquiring other similar businesses.

Standard Life currently has assets exceeding over £70 billion under its management
and has the distinction of being accorded "AAA" rating consequently for the past six
years by Standard & Poor.

The Joint Venture

HDFC Standard Life Insurance Company Limited was one of the first companies to
be granted license by the IRDA to operate in life insurance sector. Each of the JV
player is highly rated and been conferred with many awards. HDFC is rated 'AAA' by
both CRISIL and ICRA. Similarly, Standard Life is rated 'AAA' both by Moody's and
Standard and Poors. These reflect the efficiency with which HDFC and Standard Life
manage their asset base of Rs. 15,000 Cr and Rs. 600,000 Cr respectively.
HDFC Standard Life Insurance Company Ltd was incorporated on 14th August 2000.
HDFC is the majority stakeholder in the insurance JV with 81.4 % stake and Standard
Life has a stake of 18.6%. Mr. Deepak Satwalekar is the MD and CEO of the venture.
35
HDFC Standard Life Insurance Products

• Money Back
• Endowment
• Term Assurance Plan
• Flexible Bond
• Development Insurance Plan

36
ICICI PRUDENTIAL LIFE INSURANCE COMPANY
ICICI
ICICI Ltd. was established in 1955 by the World Bank, the Government of India and
the Indian Industry, to promote industrial development of India by providing project
and corporate finance to Indian industry.
Since inception, ICICI has grown from a development bank to a financial
conglomerate and has become one of the largest public financial institutions in India.
ICICI has thus far financed all the major sectors of the economy, covering 6,848
companies and 16,851 projects. As of March 31, 2000, ICICI had disbursed a total of
Rs. 1,13,070 crores, since inception.

Prudential plc.
Prudential policy was founded in 1848. Since then it has grown to become one of the
largest providers of a wide range of savings products for the individual including life
insurance, pensions, annuities, unit trusts and personal banking. It has a presence in
over 15 countries, and caters to the financial needs of over 10 million customers. It
manages assets of over US$ 259 billion (Rupees 11, 39,600 crores approx.) as of
December 31, 1999.
Prudential is the largest life insurance company in the United Kingdom (Source:
S&P's UK Life Financial Digest, 1998). Asia has always been an important region for
Prudential and it has had a presence in Asia for over 75 years. In fact Credential’s first
overseas operation was in India, way back in 1923 to establish Life and General
Branch agencies.

The Joint Venture

ICICI Prudential Life Insurance Company Limited was incorporated on July 20, 2000.
The authorized capital of the company is Rs.2300 Million and the paid up capital is
Rs. 1500 Million. The Company is a joint venture of ICICI (74%) and Prudential plc
UK (26%). The Company was granted Certificate of Registration for carrying out Life
Insurance business, by the Insurance Regulatory and
Development Authority on November 24, 2000. It commenced commercial operations
on December 19, 2000, becoming one of the first few private sector players to enter
the liberalized are
ICICI Pru Life Insurance Products

• ICICI Pru Forever Life

• ICICI Pru Single Premium Bond
• ICICI Save 'n' Protect
• ICICI Pru CashBack
37
• ICICI Pru Life Guard
• ICICI Pru Assure Investment
• ICICI Pru Life Link
• ICICI Pru Reassure

BIRLA SUN LIFE INSURANCE COMPANY LIMITED

The Aditya Birla Group
Aditya Birla Group is India's second largest, business house, with a turnover of over
$4.75bn and an asset base of$3.8 bn. The Group is a well diversified conglomerate
with 72,000 strong workforce spanning 40 Companies spread across 17 countries.
The flagship companies of the Group - Grasim, Hindalco, Indian Rayon and Indo
Gulf - hold leadership positions in their respective areas of business.

Sun Life Assurance

Sun Life Assurance Co. of Canada, established in 1871, is licensed in Canada, the
U.S., the Philippines, Hong Kong, and the U.K. Its major lines of business are life
insurance, annuities and mutual funds and investment services. Sun Life's rating
reflects extremely strong diversification of revenues and profitability, outstanding
capitalization, good fundamental earnings, and high-quality investments. In Canada,
the company is especially strong. in the corporate life and health insurance and
savings markets. In the U.S., the company is a top 20 player in the variable annuity
market and a significant force in the upscale individual insurance market. In the U.K.,
Sun Life is among top 20 life and health insurers.

38
 The Joint Venture

Birla Sun Life Insurance Company, the 74: 26 joint ventures between Aditya Birla
Group and Sun Life financial Services --of Canada, has an equity capital of Rs. 150
crore. Birla Sun Life has Mr. Nalli B Javeri as its CEO.
A six member Board, with equal representation from each of the JV Companies has
been constituted to run the Company. Mr. Donald A. Stewart, Chairman and CEO,
Sun Life Financial Services will head the Board. Mr. Kumar Mangalam Birla will be
a director on the board. Other directors include Mr. Douglas Henck, Executive Vice
President of Sun Life's Asian operations, Mr. Vijay Singh, Vice President India, Sun
Life Financial Services, Mr. B. N. Puranmalka, Group Vice-Chairman, and Mr. S. K.
Mitra, Group Director, Financial Services of the Aditya Birla Group.
The area of focus will be the rural segment as the company plans to leverage the
network of the Aditya Birla Centre for Community Initiative and Rural Development
in rural areas. Its multi-channel distribution set up comprises insurance advisors for
life and an expert marketing team for group products.

Birla Sun Life Insurance Products

• Money Back

• Endowment

• Whole Life

• Birla Sun Life Term Plant

39
 SUGGESTIONS

This section provides actionable recommendations based on the findings of

the comparative study of LIC and its competitors. The suggestions aim to
address challenges, leverage opportunities, and enhance LIC’s market
position.

1. Digital Transformation
• Enhance LIC's online platforms to improve customer experience, enabling
easy policy purchase, renewal, and claim processing.
• Invest in advanced technologies like AI, data analytics, and chatbots to
personalize services and improve efficiency.

2. Product Innovation
• Develop flexible, affordable, and millennial-focused insurance plans to attract
younger demographics.
• Introduce more hybrid products combining insurance and investment benefits,
similar to those offered by private insurers.

3. Improving Agent Network

• Strengthen the training programs for LIC agents to improve their sales skills,
knowledge, and ability to use digital tools.
• Equip agents with mobile applications to provide real-time updates and assist
customers effectively.

4. Customer Service
• Reduce turnaround time for claim settlements by automating processes.
• Establish dedicated helplines and service centers for faster resolution of
customer queries and grievances.

5. Marketing and Branding

• Launch targeted marketing campaigns to reposition LIC as a modern,
customer-centric insurer.
• Use digital marketing channels like social media, influencer marketing, and
video content to reach tech-savvy audiences.

40
6. Urban Market Penetration
• Focus on urban areas by introducing policies with higher returns, flexible
terms, and digital conveniences.
• Partner with FinTech platforms to increase visibility and accessibility in
metropolitan regions.

7. Retention Strategies
• Introduce loyalty rewards for long-term policyholders to enhance customer
retention.
• Regularly engage with customers through newsletters, workshops, and
personalized updates.

8. Competitive Pricing
• Review and adjust premium rates for term and ULIP policies to stay
competitive with private insurers.
• Introduce discounts or incentives for digital policy purchases.

9. Sustainability Initiatives
• Develop eco-friendly policies or green insurance options to cater to
environmentally conscious customers.
• Promote LIC’s role in sustainable and socially responsible investments.

10. Expand in Untapped Markets

• Strengthen LIC's presence in underserved rural areas by offering micro-
insurance products tailored to the needs of the rural population.
• Conduct awareness programs about the benefits of insurance in remote
regions.

41
CONCLUSION

42
 CONCLUSION

After overhauling the all situation that boosted a number of Pvt. Companies
associated with multinational in the Insurance Sector to give befitting competition to
the established behemoth LIC in public sector, we come at the conclusion that :

o There is very tough competition among the private insurance companies

on the level of new trend of advertising to lull a major part of Customers.
o LIC is not left behind in the present race of advertisement.
o The entry of the Pvt. Players in the Insurance Sector has expanded the
product segment to meet the different level of the requirement of the
customers. It has brought about greater choice to the customers.
o Private insurers have restricted reach to the customers.
o LIC has vast market and very firm grip on its traditional customers and
monopoly of life insurance products.
o Bank assurance - that allows life insurers to leverage on the risk product
through bank network, was adopted by private players. But LIC was also
not left behind as picking up majority stake in the corporation Bank and
large equity stake in the Oriental Bank of Commerce.

IRDA is also playing very comprehensive role by regulating norms mandating to

private players in this sector, that increases the confidence level of the customers to
the private players.

43
 CONCLUSIONS GOT BY THE CONSUMER

SURVEY ANALYSIS

o Now days also Insurance is most popular as more plain protection against
death and people are unaware about the other aspects of insurance.
o According to current scenario life and mater Insurance are the mast
popular ones followed by fire Insurance.
o Majority of people consider the Insurance premium paid by them as
reasonable.
o Only few counted people are unaware about the entry of private players
into. The insurance industry and a very high majority of people support
their entry.
o By the entry of private players. Consumers are expecting the premium to
down which would be the biggest blessing.

The comparative study of LIC and its competitors highlights the evolving dynamics of
the Indian insurance market. LIC, as the market leader, has built a strong foundation
based on trust, an extensive agent network, and its long-standing government backing.
These factors have allowed LIC to maintain its dominance, particularly in rural areas
and among traditional customer segments.

However, the analysis also reveals significant challenges for LIC in the face of
growing competition from private insurers. These competitors are leveraging
technology, innovative products, and customer-centric strategies to capture urban and
tech-savvy markets. LIC’s relatively slower adoption of digital transformation,
limited flexibility in product design, and operational inefficiencies may impact its
ability to maintain leadership in the long term.

To remain competitive, LIC must embrace modernization by investing in technology,

launching millennial-focused products, and enhancing its customer service.
Strengthening its urban market penetration and improving operational efficiency
through digital tools are critical to retaining and growing its customer base.

The study underscores LIC’s unique position in the insurance industry and its
potential to lead the market further by addressing emerging trends, such as InsurTech
and sustainability. By balancing its legacy strengths with forward-looking strategies,
LIC can continue to serve as a pillar of financial security for millions while thriving in
a competitive landscape.

44
ANNEXURE/
QUESTIONNAIRE

45
 ANNEXURE/QUESTIONNAIRE

QUESTIONNAIRE ANALYSIS

Respondents = 80
Respondents Responded = 60
Response Rate = 75%
Respondents are taken from private, government and business sectors.
1. According to you, which have played a major role in the field of life-
insurance companies?

Insurance Pvt. Employees Govt. Employees Business Man

LIC 10 13 10

HDFC 5 3 5

ICICI 3 3 4

Others 2 1 1

14

12
No. of Respondents

10

8 Pvt. Employees
Govt. Employees
6 Business Man

0
LIC HDFC ICICI Others

After analyzing this data it is found that from the given three respective level of Pvt.
Govt. and Business 10 out of 20 (30%), 13 out of 20 (39%) and 10 out of 20 (30%)
are in favour of LIC, while 5 out of 20 (15%), 3 out of 20 (9%) and 5 out of 20 (6%),
1 out of 20 (30%) and 1 out of 20 (30%) are in favour of other Pvt. Companies.
46
2. Which insurance companies have been successful to make strong public base by
advertisement?

Insurance Pvt. Employees Govt. Employees Business Man

LIC 12 14 12

HDFC 3 2 4

ICICI 4 3 3

Others 1 1 1

16

14

12
No. of Respondents

10
Pvt. Employees
8
Govt. Employees
6 Business Man

0
LIC HDFC ICICI Others

47
3. Which insurance company has gained massive public support in the current
fiscal year?

Insurance Pvt. Employees Govt. Employees Business Man

LIC 12 14 10

HDFC 3 2 5

ICICI 3 2 4

Others 2 2 1

16

14

12
No. of Respondents

10
Pvt. Employees
8 Govt. Employees
Business Man
6

0
LIC HDFC ICICI Others

From the above table, it is found that from the given three sector Private, Govt. and Business
12 out of 20 (36%), 14 out of 20 (42%), 10 out of 20 (30%), are in the favour of LIC 3 out of
20 (9%), 2 out of 20 (6%) and 4 out of 20 (12%) are in favour of ICICI, whereas only 2 out of
20 (6%), 2 out of 20 (6%) 1 and out of 20 (3%) favour others company.

48
4. Do you think insurance policy is in the direction of public welfare?

Pvt. Sector Govt. Sector Business Man

Yes 13 16 12

No 7 4 8

18

16

14
No. of Respondents

12

10 Yes

8 No

0
Pvt. Sector Govt. Sector Business Man

The above table shows that from private sector 13 out of 20 (30%) agree and 7 out of 20
(21%) disagree, from govt. sector 16 out of 20 (48%) think it right but 4 out of 20 (12%)
don’t thick it so and from business man 12 out of 20 (36%) are in favour of the above
statement but 8 out of 20 (24%) don’t favour it.

49
5. Is retirement bond or pension policy launched by the number of private player
as well as public sector Company in the direction of secured old age?

Pvt. Sector Govt. Sector Business Man

Yes 15 18 13

No 5 2 7

20
18
16
No. of respondents

14
12
Yes
10
No
8
6
4
2
0
Pvt. Sector Govt. Sector Business Man

It is obvious from the above table that 15 out of 20 (45%), 18 out of 20 (54%) and 13
out of 20 (39%) from the given three think retirement bend or pension policy a
legitimate step in the direction of secure old age but 5 out 20 (15%), 2 out of 20 (6%)
and 7 out 20 (21%) don’t agree with the opinion of the majority class.

50
6. Do you think that risk coverage factor included in Insurance policy attracts
general public towards the policy?

Pvt. Sector Govt. Sector Business Man

Yes 12 16 11

No 8 4 9

18

16

14
No. of respondents

12

10 Yes

8 No

0
Pvt. Sector Govt. Sector Business Man

From the above table it is found that 12 out of 20 (36%) from Private sector 16 out of
20 (48%). From Govt. sector and 11 out of 20 (33%) thinks risk coverage factor
attractive but rest 8 out of 20 (24%), 4 out of 20 (12%) and 9 out 20 (27%) from the
above them sector don’t think it so encouraging towards saving trend whereas 3 out of
20 (9%), 2 out of 20 (6%) and 4 out of 20 (12%) don’t think it so.

51
7. What according to you, the term plan that only covers risk and doesn’t cover
maturity benefit on survival at the end of the term provides security cover over
policy holders or a smart way of accumulative money from policy holders?

Pvt. Sector Govt. Sector Business Man

Security Cover 11 15 12

Accumulative Money 9 5 8

16

14

12
No. of Respondents

10

Security Cover
8
Accumulative Money
6

0
Pvt. Sector Govt. Sector Business Man

It is obvious from the above data that 11 out of 20 (33%), from the Pvt. Sector, 15 out
of 20 (45%) from Govt. sector and 12 out of 20 (36%) think term plan as a security
cover but 9 out of 20 (27%), 5 out of 20 (15%) and 8 out of 20 (24%) from the three
respective group think it as a way of accumulating money insurance company.

52
8. Do you think that the arrival of so many private companies in this insurance
sector envisage a lot of choice to policy holder?

Pvt. Sector Govt. Sector Business Man

Yes 16 18 16

No 4 2 4

20

18

16
No. of Respondents

14

12
Yes
10
No
8

0
Pvt. Sector Govt. Sector Business Man

From analyzing the above data it is found that 16 out of 20 (48%) from Pvt. Sector, 18
out of 20 (54%) from Govt. sector and 16 out of 20 (48%) think that the arrival of
private players envisage a lot of choice to policy holder. But 4 out of 20 (12%), 2 out
of 20 (6%) and 4 out of 20 (12%) don’t think it so.

53
9. Do you agree that customer-centricity and transparency are the buzzwords for
success in this evolving industry?

Pvt. Sector Govt. Sector Business Man

Yes 18 20 19

No 2 - 1

25

20
No. of Respondents

15
Yes
No
10

0
Pvt. Sector Govt. Sector Business Man

From this above data, it is found the 18 out of 20 (54%) from Pvt. Sector and 20 out
of 20 (60%) from Govt. Sector 19 out of 20 (57%) from Business men agree with this
statement whereas only 2 out of 20 (6%) from Pvt. Sector and 1 out of 20 (3%) from
Business men do not agree with this statement.

54
WEBLIOGRAPHY
& BIBLIOGRAPHY

55
 WEBLIOGRAPHY

1. Life Insurance Corporation of India Official Website

URL: https://licindia.in
Purpose: To gather information on LIC’s products, services, and corporate details.
2. Insurance Regulatory and Development Authority of India (IRDAI)
URL: https://www.irdai.gov.in
Purpose: To access reports and guidelines related to the insurance industry in India.
3. HDFC Life Official Website
URL: https://www.hdfclife.com
Purpose: To compare LIC’s products with private insurers.
4. ICICI Prudential Life Insurance Official Website
URL: https://www.iciciprulife.com
Purpose: To analyze competitive insurance offerings.
5. Economic Times – Insurance Section
URL: https://economictimes.indiatimes.com/industry/banking/finance/insurance
Purpose: To understand market trends, customer preferences, and industry challenges.
6. Livemint – Insurance News
URL: https://www.livemint.com
Purpose: For insights on the latest developments in the Indian insurance sector.
7. Statista – Insurance Market in India
URL: https://www.statista.com
Purpose: To obtain data and statistics related to LIC and its competitors.

56
 BIBLIOGRAPHY

1. Books and Journals

o Mishra, M. N. (2018). Insurance Principles and Practice. Sultan Chand & Sons.
o Gupta, P. K. (2020). Fundamentals of Insurance. Himalaya Publishing House.
o IRDA Annual Report (2022). Performance of Indian Life Insurance Sector.
o Kumar, R. (2019). Life Insurance: A Comparative Analysis. McGraw Hill.

2. Research Papers and Articles

o Sharma, R., & Singh, S. (2021). "A Comparative Study of LIC and Private
Insurers in India." Journal of Financial Research, Vol. 12(4), pp. 45-57.
o Patel, A. (2020). "Customer Perceptions of LIC Versus Private Life Insurers."
Indian Journal of Business Studies, Vol. 15(2), pp. 23-35.

3. Reports
o KPMG Report on Indian Insurance Sector (2022).
o Deloitte Insights (2023). Transforming the Indian Insurance Industry: Key
Trends and Opportunities.

57