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A CPP Report

On

LIFE INSURANCE CORPORATION LIMITED

For the partial fulfilment of the award of degree of BBA

Under the supervision of:-

Dr. J.K Chandel

Assistant Professor

Submitted To:-

The Director

Submitted By :

MUKESH RANI

Class: MBA 5 year 3rdsem

Roll no. : 30

Registration no. : 12UD - 58

INSTITUTE OF MANAGEMENT STUDIES

Kurukshetra University, Kurukshetra

AugustDecember 2013

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DECLARATION

I, MUKESH hereby declare that I have completed the report entitled assigned to me by the Institute

be submitted in the partial fulfillment of the MBA 5 Year Degree from Kurukshetra Univers

Further, I declared that this is original work done by me and the information provided in the study

authentic to the best of my knowledge and belief.

Signature

MUKE

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ACKNOWLEDGEMENT

In this project, I have made an honest and dedicated attempt to make the Project Report so easy

understand for a person who is willing to get knowledge about the LIFE INSURAN

CORPORATION LIMITED.

I am deeply indebted to my esteemed teacher & our chairman Prof. M.K Jain, K.U.K., beca

he gave me opportunity of making project report. I am also thankful to my lecturer as well as m

supervisor (Guide) Mr. J.K CHANDEL for their kind support & suggestion for making project repo

MUKESH SIGNATURE

MBA 3rdsem Roll No. 30

CONTENT

Chapter No. Title of the Chapter Page no.

1. Insurance Sector1.1Introduction1.2 History1.3 Players in the sector

2. Life Insurance Corpration2.1 Introduction2.2 History2.3 Product and Services2.4 Organisational Structure

3. Analysis and Interpretation3.1 Financial Analysis3.2 Marketing Analysis

4. SWOT Analysis and Conclusion

5. Learning From The Report

REFERENCES

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CHAPTER-1

INTRODUCTION

Brief Introduction of Sector

A insurance sector is a boon to a countrys economy. The sector facilitates long -term funds

infrastructure development and simultaneously strengthens the risk-taking ability of the counIndias rapid economic growth and development over the past decade is considered to be v

significant on the global canvas.

Indian insurance sector is poised to mark great progress in the years the come. Over the past few yea

many foreign insurance companies have ventured into the Indian landscape in order to harness

immense untapped latent potential of this industry. Moreover, the favourable regulatory environm

ensures stability and fair play in the entire market.

The total insurance market stood at US$ 72 billion in FY12 and is expected to touch US$ 139 bill

by 2015. Over FY03-12, life insurance premiums increased at a compound annual growth rate (CAG

of 20.1 per cent. Private players have increased their market share in the life insurance market to 2

per cent in FY12 from 2 per cent in FY03.

The rapid development in Tier II and Tier III cities and growth in new bankable households have led

the emergence of a large insurable class with an appetite for sophisticated life insurance products. L

is still the market leader, with 70.7 per cent share in FY12, followed by ICICI Prudential, with 4.9

cent share.

The Insurance Regulatory and Development Authority (IRDA) has recently allowed life insura

companies that have completed 10 years of operations to raise capital through initial public offerin

(IPOs). Insurance products are also covered under the exempt, exempt, exempt (EEE) method

taxation, which translates to an effective tax benefit of approximately 30 per cent on sel

investments.

Crop insurance market in India is the largest in the world, covering around 30 million farmers. T

Government of India plans to increase the coverage to 50 million during the 12th Five-Year Pl

Health insurance continues to be one of the most rapidly growing sectors in the Indian insuran

industry. Penetration of health insurance is expected to more than double by 2020.

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History

Insurance: Nov 2012

India is one of the fastest growing insurance markets in the world. Growing interest towards insura

among people; innovative products and distribution channels are aiding the growth of insurance sec

Increasing demand for insurance is offshoring.

The total insurance market has grown from US$ 13 billion in FY02 to US$ 70 billion in the year FY

Over FY03-11, premiums have increased at a compound annual growth rate (CAGR) of 20.5 per ce

Motor insurance forms the largest non-life segment with a share of 43 per cent followed by Hea

insurance accounting 23 per cent of the total.

The Insurance Regulatory and Development Authority (IRDA) Act, 1999, has allowed a foreign dir

investment (FDI) of up to 26 per cent in the insurance sector on automatic route subject to obtain

license from IRDA. Authorities are now considering an increase of FDI limit to 49 per cent through

Insurance Laws Amendment Bill.

IRDA recently allowed life insurance companies that have completed 10 years of operations to ra

capital through initial public offerings (IPOs). Investments from the private sector are increasing

they see a huge opportunity in the growing insurance sector of the country.

Insurance: March 2013

India is one of the fastest growing insurance markets in the world. Growing interest towards insura

among people; innovative products and distribution channels are aiding the growth of the sector.

The Indian insurance market has grown from US$ 13 billion in FY02 to US$ 70 billion in FY11 and

further expected to grow to US$ 139 billion in FY15. Over FY02-11, life insurance premiu

increased at a compound annual growth rate (CAGR) of 21.6 per cent. Motor insurance forms

largest non-life segment with a share of 41 per cent followed by health insurance accounting 23 pcent of the total in FY12.

The emergence of an affluent middle class is triggering the demand for both life and non-life perso

insurance. The Insurance Regulatory and Development Authority (IRDA) Act, 1999, has allow

foreign direct investment (FDI) of up to 26 per cent in the insurance sector on automatic route subj

to obtaining license from IRDA. The Cabinet has also approved increase of FDI limit to 49 per c

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through the Insurance Laws Amendment Bill (2008).

The opening of pension market with the passing of the Pension Fund Regulatory Developm

Authority (PFRDA) Bill 2011 will make the market more conducive for private life insurers. Furth

the rapid development in tier II and tier III cities and growth in new bankable households have led

the emergence of a large insurable class with an appetite for sophisticated life insurance products.

PLAYERS IN THE INSURANCE SECTOR

LIFE CORPORATION OF INDIA

Life Insurance Corporation (LIC) came into existence on 1st September 1956 through the

amalgamation of 154 Indian insurance companies, 16 non-Indian companies and 75 provident. The

amalgamation was achieved with the help of Life Insurance Act passed by the Parliament in the sam

year. The LIC was created with the goal of reaching all the insurable people in the country and

providing them financial coverage at a reasonable price. In the year 1956, LIC had 5 zonal offices, 3

divisional offices and 212 branch offices. With time there was a need for a branch office at every

district headquarter and many branches were opened, which raised the pace of the organization.

LIC now has 2048 fully computerized branch offices, 100 divisional offices, 7 zonal offices and the

corporate office. At present, online premium collection facility is being offered in selected cities as

LIC has tied up with some banks and service providers. For providing customer satisfaction the

organization has introduced various schemes such as ECS, ATM premium payment facility, IVRS,

Info centers which are set up in various cities including Mumbai, Bangalore, Chennai, Kolkata, New

Delhi, Pune and many more. It has also come up with SATELLITE SAMPARK offices providing ea

access to policyholders. LIC has crossed many milestones and set standards for itself fostering

unmatched performance.

Objectives

Holding the money with obligation and using it in the best possible manner in the interests

the policyholder and the community.

Bringing attractive savings plans and making them easily accessible to the policyholders.

Giving attractive returns to the people and keeping in mind national priorities.

Being trustworthy to the customers and develop the spirit of corporate social responsibility.

Spreading insurance in both rural and urban areas and covering all the insurable persons a

reasonable cost.

Bringing in plans and policies favorable to the changing environment.

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Providing efficient service and involving people in the organization for their satisfaction.

Bajaj Allianz General Insurance Company Limited

Bajaj Allianz General Insurance Company Limited is a joint venture between Bajaj Auto Limited an

AllianzAGofGermany.

Bajaj Allianz General Insurance came into existence on 2nd May 2001, when it got certification of

Registration from the Insurance and Regulatory Development Authority. Bajaj Auto has a share of

74%, whereas Allianz has the remaining 26%. In the very first year, the company made a strong

position for itself in the industry and was reckoned amongst the top private insurers. The premium

income of the company as on 31st March 2006 was Rs. 1285 crores, whereas the profit after tax mad

was Rs. 52 crores. Bajaj Allianz has a Pan India network covering over 100 towns from Jammu to

Thiruvananthapuram and aims to spread its operations in many other cities.

The vision of the organization is to be the first choice for customers, and provide job satisfaction to

employees and create shareholder value. The organization strives to excel in its products and service

providing total customer satisfaction.

Bajaj Allianz serves customers in all areas of General and Health Insurance as well as Risk

Management. It has in-depth knowledge of the local market and extensive distribution network with

expertise, stability and experience. It has a capital base of Rs. 147 crores, and is allowed to serve bot

the General and Health insurance.

It has achieved iAAA rating, by ICRA Limited and has the highest claims- paying ability and a stabl

position in the market. In a 2006 survey, Business World has rated it among the Most Respected

Companies, putting it at No.2 position in Insurance sector.

The Company provides the following products under general insurance:

Travel Insurance

Asset Insurance

Health Insurance

Corporate Insurance

ICICI Prudential Life Insurance Company

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ICICI Prudential is a joint venture between ICICI bank and Prudential plc, both having strong

operations in their respective countries. ICICI bank is one of the leading banks in India providing

quality financial services and Prudential is an international financial service provider headquartered

United Kingdom. ICICI and Prudential have respective shares of 74% and 26%. The Company start

operating in December 2000. Currently, total capital with the company is Rs. 18.15 billion.

ICICI Prudential was the first insurance company in India to receive a National Insurer FinancialStrength rating of AAA (Ind.) from Fitch ratings. It has been given the honour of being among the

Most Trusted Brands in the industry by Economic Times for 3 consecutive years. It has a network o

450 branches, over 1,50,000 insurance advisors and 18 bancassurance partners.

As the organization grows and develops, it keeps introducing new range of products and services an

enhancing the quality of plans and solutions given to the customers. The distribution network is one

the best, and is spreading across the length and breadth of the country. As on December 31, 2006, it

had made imprints in over 360 cities and towns in India. It has over 1,75,000 advisors across the

country, serving clients with full commitment. It has tied up with ICICI Bank, Bank of India, Federa

Bank, Lord Krishna Bank, some co-operative banks, NGOs, MFIs and corporates for making inroad

into the rural areas.

Products

Insurance Solutions for Individuals: ICICI Prudential Life Insurance offers several novel, customer-

centric products for customers at every stage of life. The products and services offered by the

organization are in various fields, such as:

Savings & Wealth Creation Solutions

Premier Life Gold

LifeLink Super

Invest Shield Life New

Cash Plus

Cash Bak

Life Time Super & Life Time Plus

Save 'n' Protect.

Retirement Solutions

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Life Link Super Pension

Forever Life

Immediate Annuity

Life Time Super

Child Plans

Education insurance - Smart Kid

Protection Solutions

Life Guard

Home Assure

Group Insurance Solutions

ICICI Prudential also offers Group Insurance Solutions for companies seeking to enhance benefits to

their employees.

Group Immediate Annuities

Group Term Plan

Group Superannuation Plan

Group Gratuity Plan

ICICI Lombard General Insurance

ICICI Lombard General Insurance Company Limited is a joint venture between ICICI Bank Limited

and Fairfax Financial Holdings Limited. ICICI bank is India's second largest bank; Fairfax is Canad

based, engaged in general insurance, reinsurance, insurance claims management and investment

management. ICICI Lombard General Insurance Company commenced its operations in general

insurance business in August 2001.

ICICI Lombard is India's number one private insurance company; it is also the first general insuranc

company to be given certification of ISO 9001:2000. The company provides simple and fast

documentation, fast claims settlement, online policy issuance, and comprehensive product line.

It has also been given iAAA rating by ICRA for having highest claims paying ability. In the very fir

year of operations, it was able to reach financial breakeven and achieve underwriting breakeven in th

second year. Security is provided through encryption and it is the first company to provide digitally

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signed documents. It has been honored as the most Customer Responsive Company by the Economi

Times. Times of India has designated it as the Best Housing Insurance in the Smart Living Awards b

360 degrees. It has also been awarded Gold Shield for "Excellence in Financial Reporting". It is amo

the top three companies to be awarded the "General Insurance Company of the Year" at the 10th As

Insurance Industry Awards.

Products

Business Solutions

Industrial All Risk

Fire and Special Perils

Electronic Equipment Insurance

Fidelity Insurance

Consequential Loss (Fire) Insurance

Tea Corp Insurance

Burglary Insurance

Machinery

Personal Solutions

Group Personal Accidents

Health

Health Insurance

Project Solutions

Contractors' All Risk

Contractors' Plant & Machinery

Erection All Risk

Performance Guarantee

Liability Solutions

Director's & Officers Liability

Product Liability

Workmen's Compensation

Event Insurance

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Product Liability

Travel Insurance

Senior Citizen Overseas Travel

Individual Overseas Travel

Corporate Overseas Travel

Domestic Travel

Birla Sun Life Insurance Company Limited

Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between Aditya Birla Group an

Sun Life Financial Inc. BSLI started functioning in March 2001 after getting the certificate of

registration from IRDA.

Birla Sun Life Insurance Company Limited introduced unit Linked Life Insurance Solutions in India

Within a short span of time it was able to establish itself as a leading player in the Private Life

Insurance Industry. It has been innovative and come up with customer-centric products to provide

safety and services. The company has web-enabled IT systems for better customer services and a

strong distribution channel which is easily approachable. The company shows corporate governance

and a high degree of transparency in all business practices. It has professional knowledge and global

expertise of Aditya Birla Group.

Birla Sunlife Insurance has been providing first class financial solutions to its customers and has bee

amongst the top three private sector life insurance companies.

Its mission is to be amongst the top players in the eyes of customers and the first choice of insurance

and retirement solutions to individuals and groups. These innovative solutions are linked with globa

and technical expertise and are deployed by a multi channel distribution network and enhanced

technology.

The company aims at keeping all people associated with it - customers, clients, stakeholders and

employees- happy and fully satisfied. It wants to provide value added products and services to the

customers, job satisfaction to employees and highest returns to the shareholders.

Qualities like integrity, commitment, passion, and speed are the core values of the company. The

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products offered by the company are:

Individual Life

Protection

Premium Back Term Plan

Birla Sun Life Term Plan

Saving

Simply Life

Flexi Save Plus

Supreme Life

Life Companion

Flexi Cash Flow

Prime Life

Flexi Save Plus

Children

Children's Dream Plan

Retirement

Flexi Secure Life Retirement Plan II

Riders

Critical Illness Plus Rider

Term Rider

Waiver of Premium

Critical Illness Rider

Critical Illness - Woman Rider

Accidental Death and Dismemberment Rider

TATA AIG General Insurance

Tata AIG General Insurance Company Ltd. is a joint venture between Tata Sons and American

International Group, Inc. (AIG). The Tata Group is holding 74 per cent stake and the rest 26 percent

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having a network of 19 branches, 12 agencies, 2 associate companies and 2 subsidiary companies. T

company contributes 80% of total overseas premium in India.The company has a highly qualified st

which excel in both expertise and knowledge and are trained to provide satisfaction to the customers

is the only company able to establish strong relationships overseas and has a record of successful

trading outside India. The performance has been outstanding and the company has been able to

maintain a strong position in the market.

It has been the pioneer in various fields such as:

Setting up an Aviation Insurance Department in 1946.

Handling the complete insurance requirements of the Indian Shipping Fleet.

Introduced its own Training School.

Pioneering the concept of 'Model Office Training'.

Creating department in Engineering insurance.

Satellite insurance.

The company wants to develop itself as the best general insurance company in the industry. It is

concerned about the society and community, and provides financial security at reasonable prices. Th

company gives utmost importance to customer needs and there is transparency in its operations. Som

of the policies and schemes introduced by the company are:

Public Liability Policy

Jewellers Block Policy

Pravasi Bharatiya Bima Yojana Policy

Universal Health Insurance Scheme

Fire Policy

IFFCO Tokio General Insurance

IFFCO Tokio General Insurance is a customer-centric company aiming to be easily accessible and

approachable to all sections of society. It offers products and services that provide quality at reasona

cost. The organization has the deep knowledge of IFFCO and thus developed a business plan that ha

both stability and integrity.

It has set global standards for itself and is the only private general insurance company in India to ma

5 consecutive years of experience. ITGI has been one of the few companies to show underwriting

profits within four years of operations.

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The company focuses on delivering creative solutions to its customers. IFFCO Tokio General

Insurance has 273 employees present in 68 cities, dedicated to give full satisfaction to the customers

is the first company to underwrite mega policies for a fertilizer and automobile client.

The Oriental Insurance Company Ltd.

The Oriental Insurance Company Ltd. (OICL) is one of the general insurance companies under thesupport of the General Insurance Corporation (GIC) of India. It came into existence in the year 1947

and is one of the oldest organizations in India. It caters to all sections and sectors ranging from MNC

to rural sector. The headquarters of the company are situated at Delhi and it has 21 Regional Offices

311 Divisional Offices and 635 Branch offices.

It has a team of hard working employees, having the talent to take the company to new heights. Also

the company shows concern for both the employees and customers. It provides special covers for lar

projects like power plants, steel plants and chemical plants.

It believes in actively participating in economic growth by being a dynamic organization catering to

the society with full commitment and efficiency. The main objectives of the company are to serve th

insurance needs of the entire community, provide services at reasonable cost, make optimum

utilization of the funds, maintaining global standards, minimization of losses and retention of busine

HDFC Standard Life Insurance Company Limited

HDFC Standard Life Insurance Company Limited is one of the first companies to be licensed by IRD

to operate in the Insurance sector. The company came into existence on 14th August 2000. Both Cri

and ICRA have honored it with AAA Ratings. Similarly Moody's and Standard and Poors have also

honoured it AAA ratings. HDFC holds 81.4% share in HDFC and the remaining 18.6% stake is with

Standard Life. It integrates the strong expertise and stability of Standard Life and HDFC.

It is one of the most trusted companies; it is easily accessible and approachable, offering value servi

to its customers.

The company aims to provide:

Innovative products to cater to different needs of different customers

Customer service of the highest order

Use of technology to improve service standards

Value for money for customers

Increasing market share

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Professionalism in carrying out business

CHAPTER 2

LIFE INSURANCE CORPORATION LIMITED

Introduction

Life insurance in India made its debut well over 100 years ago.

In our country, which is one of the most populated in the world, the prominence of insurance is not a

widely understood, as it ought to be. What follows is an attempt to acquaint readers with some of the

concepts of life insurance, with special reference to LIC.

It should, however, be clearly understood that the following content is by no means an exhaustive

description of the terms and conditions of an LIC policy or its benefits or privileges.

For more details, please contact our branch or divisional office. Any LIC Agent will be glad to help

you choose the life insurance plan to meet your needs and render policy servicing.

Life insurance is a contract that pledges payment of an amount to the person assured (or his nominee

on the happening of the event insured against.

The contract is valid for payment of the insured amount during:

The date of maturity, or

Specified dates at periodic intervals, or

Unfortunate death, if it occurs earlier.

Among other things, the contract also provides for the payment of premium periodically to the

Corporation by the policyholder. Life insurance is universally acknowledged to be an institution,

which eliminates 'risk', substituting certainty for uncertainty and comes to the timely aid of the famil

in the unfortunate event of death of the breadwinner.

By and large, life insurance is civilisation's partial solution to the problems caused by death. Life

insurance, in short, is concerned with two hazards that stand across the life-path of every person:

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1. That of dying prematurely leaving a dependent family to fend for itself.

2. That of living till old age without visible means of support.

Who Can Buy A Policy?

Any person who has attained majority and is eligible to enter into a valid contract can

insure himself/herself and those in whom he/she has insurable interest.

Policies can also be taken, subject to certain conditions, on the life of one's spouse or

children. While underwriting proposals, certain factors such as the policyholders state

of health, the proponent's income and other relevant factors are considered by the

Corporation.

Insurance For Women

Prior to nationalisation (1956), many private insurance companies would offer

insurance to female lives with some extra premium or on restrictive conditions.

However, after nationalisation of life insurance, the terms under which life insurance is

granted to female lives have been reviewed from time-to-time.

At present, women who work and earn an income are treated at par with men. In other

cases, a restrictive clause is imposed, only if the age of the female is up to 30 years and

if she does not have an income attracting Income Tax.

Medical And Non-Medical Schemes

Life insurance is normally offered after a medical examination of the life to be assured.

However, to facilitate greater spread of insurance and also to avoid inconvenience, LIC

has been extending insurance cover without any medical examination, subject to certain

conditions.

With Profit And Without Profit Plans

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An insurance policy can be 'with' or 'without' profit. In the former, bonuses disclosed, if

any, after periodical valuations are allotted to the policy and are payable along with the

contracted amount.

In 'without' profit plan the contracted amount is paid without any addition. The

premium rate charged for a 'with' profit policy is therefore higher than for a 'without'profit policy.

Keyman Insurance

Keyman insurance is taken by a business firm on the life of key employee(s) to protect

the firm against financial losses, which may occur due to the premature demise of the

Keyman.

OBJECTIVES OF LIC

Spread Life Insurance widely and in particular to the rural areas and to the socially

economically backward classes with a view to reaching all insurable persons in the country a

providing them adequate financial cover against death at a reasonable cost.

Maximize mobilization of people's savings by making insurance-linked savings adequatattractive.

Bear in mind, in the investment of funds, the primary obligation to its policyholders, wh

money it holds in trust, without losing sight of the interest of the community as a whole;

funds to be deployed to the best advantage of the investors as well as the community 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

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 soc

and economic environment.

Involve all people working in the Corporation to the best of their capability in furthering

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interests of the insured public by providing efficient service with courtesy.

HISTORY

Brief History Of Insurance

The story of insurance is probably as old as the story of mankind. The same instinct that prompts

modern businessmen today to secure themselves against loss and disaster existed in primitive men

also. They too sought to avert the evil consequences of fire and flood and loss of life and were willin

to make some sort of sacrifice in order to achieve security. Though the concept of insurance is largel

a development of the recent past, particularly after the industrial erapast few centuriesyet its

beginnings date back almost 6000 years.

Life Insurance in its modern form came to India from England in the year 1818. Oriental L

Insurance Company started by Europeans in Calcutta was the first life insurance company on Ind

Soil. All the insurance companies established during that period were brought up with the purpose

looking after the needs of European community and Indian natives were not being insured by th

companies. However, later with the efforts of eminent people like Babu Muttylal Seal, the foreign

insurance companies started insuring Indian lives. But Indian lives were being treated as sub-stand

lives and heavy extra premiums were being charged on them. Bombay Mutual Life Assurance Soci

heralded the birth of first Indian life insurance company in the year 1870, and covered Indian live

normal rates. Starting as Indian enterprise with highly patriotic motives, insurance companies ca

into existence to carry the message of insurance and social security through insurance to vari

sectors of society. Bharat Insurance Company (1896) was also one of such companies inspired

nationalism. The Swadeshi movement of 1905-1907 gave rise to more insurance companies. T

United India in Madras, National Indian and National Insurance in Calcutta and the Co-operat

Assurance at Lahore were established in 1906. In 1907, Hindustan Co-operative Insurance Comp

took its birth in one of the rooms of the Jorasanko, house of the great poet Rabindranath Tagore,

Calcutta. The Indian Mercantile, General Assurance and Swadeshi Life (later Bombay Life) were so

of the companies established during the same period. Prior to 1912 India had no legislation to regul

insurance business. In the year 1912, the Life Insurance Companies Act, and the Provident Fund A

were passed. The Life Insurance Companies Act, 1912 made it necessary that the premium rate tab

and periodical valuations of companies should be certified by an actuary. But the Act discrimina

between foreign and Indian companies on many accounts, putting the Indian companies a

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disadvantage.

The first two decades of the twentieth century saw lot of growth in insurance business. From

companies with total business-in-force as Rs.22.44 crore, it rose to 176 companies with total busine

in-force as Rs.298 crore in 1938. During the mushrooming of insurance companies many financia

unsound concerns were also floated which failed miserably. The Insurance Act 1938 was the flegislation governing not only life insurance but also non-life insurance to provide strict state con

over insurance business. The demand for nationalization of life insurance industry was m

repeatedly in the past but it gathered momentum in 1944 when a bill to amend the Life Insurance A

1938 was introduced in the Legislative Assembly. However, it was much later on the 19th of Janua

1956, that life insurance in India was nationalized. About 154 Indian insurance companies, 16 n

Indian companies and 75 provident were operating in India at the time of nationalizati

Nationalization was accomplished in two stages; initially the management of the companies was tak

over by means of an Ordinance, and later, the ownership too by means of a comprehensive bill. T

Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the L

Insurance Corporation of India was created on 1st September, 1956, with the objective of spread

life insurance much more widely and in particular to the rural areas with a view to reach all insura

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

the year 1956. Since life insurance contracts are long term contracts and during the currency of

policy it requires a variety of services need was felt in the later years to expand the operations

place a branch office at each district headquarter. Re-organization of LIC took place and large numb

of new branch offices were opened. As a result of re-organisation servicing functions were transfer

to the branches, and branches were made accounting units. It worked wonders with the performance

the corporation. It may be seen that from about 200.00 crores of New Business in 1957 the corporat

crossed 1000.00 crores only in the year 1969-70, and it took another 10 years for LIC to cross 2000

crore mark of new business. But with re-organisation happening in the early eighties, by 1985-86 L

had already crossed 7000.00 crore Sum Assured on new policies.

Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8 zo

offices, 992 satallite offices and the Corporate office. LICs Wide Area Network covers 109 divisio

offices and connects all the branches through a Metro Area Network. LIC has tied up with some Ban

and Service providers to offer on-line premium collection facility in selected cities. LICs ECS a

ATM premium payment facility is an addition to customer convenience. Apart from on-line Kio

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and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chenn

Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access

its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices

smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facilit

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

moving fast on a new growth trajectory surpassing its own past records. LIC has issued over one cr

policies during the current year. It has crossed the milestone of issuing 1,01,32,955 new policies

15th Oct, 2005, posting a healthy growth rate of 16.67% over the corresponding period of the previo

year.

From then to now, LIC has crossed many milestones and has set unprecedented performance record

various aspects of life insurance business. The same motives which inspired our forefathers to br

insurance into existence in this country inspire us at LIC to take this message of protection to light

lamps of security in as many homes as possible and to help the people in providing security to th

families.

Some of the important milestones in the life insurance business in India are:

1818: Oriental Life Insurance Company, the first life insurance company on Indian soil star

functioning.

1870: Bombay Mutual Life Assurance Society, the first Indian life insurance company started

business.

1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the l

insurance business.

1928: The Indian Insurance Companies Act enacted to enable the government to collect statisti

information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective

protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies are taken over by the central governm

and nationalised. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribut

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of Rs. 5 crore from the Government of India.

The General insurance business in India, on the other hand, can trace its roots to the Triton Insura

Company Ltd., the first general insurance company established in the year 1850 in Calcutta by

British.

Some of the important milestones in the general insurance business in India are:

1907: The Indian Mercantile Insurance Ltd. set up, the first company to transact all classes of gene

insurance business.

1957: General Insurance Council, a wing of the Insurance Association of India, frames a code

conduct for ensuring fair conduct and sound business practices.

1968: The Insurance Act amended to regulate investments and set minimum solvency margins and Tariff Advisory Committee set up.

1972: The General Insurance Business (Nationalisation) Act, 1972 nationalised

general insurance business in India with effect from 1st January 1973.

107 insurers amalgamated and grouped into four companies viz. the Natio

Insurance Company Ltd., the New India Assurance Company Ltd.,

Oriental Insurance Company Ltd. and the United India Insurance Comp

Ltd. GIC incorporated as a company.

Mission

"Explore and enhance the quality of life of people through financial security by providing products a

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 Indi

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PRODUCT & SERVICES

INSURANCE PLANS

As individuals it is inherent to differ. Each individual's insurance needs and requirements are differ

from that of the others. LIC's Insurance Plans are policies that talk to you individually and give you

most suitable options that can fit your requirement.

Bima Account Plans

Endowment Plans

Chlidren Plans

Plans For Handicapped Dependents

Endowment Assurance Plans

Plans For High Worth Individuals

Money Back Plans

Whole Life Plans

PENSION PLANS

Pension Plans are Individual Plans that gaze into your future and foresee financial stability during yo

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.

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.

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SPECIAL PLANS

LICs Special Plans are not plans but opportunities that knock on your door once in a lifetime. Theseplans are a perfect blend of insurance, investment and a lifetime of happiness!

Golden Jubliee Plans

Micro Insurance Plans

MICRO INSURANCE PLANS

LICs Micro Insurance Plans are not plans but opportunities that knock on your door once in a lifetim

These plans are a perfect blend of insurance, investment and a lifetime of happiness!

WITHDRAWN PLANS

HEALTH PLANS

GROUP SCHEMES

Home Loans- It provides a range of services serving various needs of individuals, NRIs

pensioners related to housing.

Corporate Loans- The company offers financial assistance to corporate for purchasing, constructi

renovating and repair of housing property.

Builders/Developers- It provides loans to builders or developers for construction of housing proje

for commercialisation.

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ORGANISATIONAL STRUCTURE

S.No Name Designation

1 D K Mehrotra Chairman

3 Sunita Sharma Managing Director

2 Nitin K Jage Company Secretary

4 Sushobhan Sarker Non Executive Director

5 Dhananjay Mungale Independent Non-Executive Director

6 S Ravi Independent Non-Executive Director

7 K Narasimha Murthy Independent Non-Executive Director

8 B N Shukla Independent Non-Executive Director

9 Jagdish Capoor Independent Non-Executive Director

10 Savita Singh Independent Non-Executive Director

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CHAPTER 3

ANALYSIS & INTERPRETATION

Table 3(a);- Profit and Loss Account:-

March13 March12 March11 March10 March0

Net sales 7575.92 6114.86 4620.09 3456.24 2880.17

Total Income 7658.88 6137.95 4639.34 3475.46 2893.33

Total Expenditure 353.18 385.75 469.29 147.53 154.33

EBIT 7298.16 5744.78 4163.42 3321.55 2734.01

EBT 1373.57 1153.72 1065.34 910.38 716.65

Profit and Loss 1023.21 837.60 745.66 661.29 524.72

Profit of the year in 2013 is increased as compare to the year 2012 because of reported profit after t

This is good for the company because company has earned profit as compare to last year... It w

improve the goodwill of the company..

Table 3(b):- Balance Sheet

March13 March12 March11 March10 March09

Net worth 6481.29 5682.21 4169.10 3387.67 2234.10

Total Liabilities 65186.47 53552.12 49331.94 38145.83 27655.75

Net Block 62.37 62.24 33.85 33.51 32.33

Total Current Assets 80313.23 64191.79 52182.25 38820.65 28221.41

TotalCurrent

Liabilities

15373.76 10880.45 4300.90 2099.14 1729.32

Net Current Assets 64939.47 53311.34 47881.36 36721.51 26492.09

The net Current Assets are increased in year 2013 as compare to year 2012. This is due to the repor

profit after tax.

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CHAPTER 4

SWOT ANALYSIS

SWOT Analysis

Strength

1. Largest state-owned life insurance company in India, and also

the country's largest investor

2. Has over 2000 branches across all parts of India and more than

10,00,000 agents.

3. With Largest fund base it is the biggest investor in India

4. Has over 115,000 employees across India

5. According to The Brand Trust Report, LIC is the 8th most

trusted brand of India

6. LIC has subsidiaries like LIC Housing Finance Limited, LIC

Cards Services Limited, LIC Nomura Mutual Fund,

LIC(Nepal)Ltd, LIC(Lanka)Ltd, LIC(International)BSC(C)

Weakness

1. It has an image of a Government agency and hence lacks

innovation

2. Being a Government agency, red tape and bureaucracy causes

problems

3. Managing a huge workforce during economic crisis meant

overburdened due to salaries

Opportunity

1. Use of Technology to provide effective services to cater to

urban population.

2. Government Schemes implementation

Threats

1. Economic crisis

2. Entry of new NBFCs in the sector

3. Varying Govt policies

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CONCLUSION

Insurance is an integral part of any personal financial plan. The type of insuran

and the amount of coverage you obtain all depends on your unique financial a

family circumstances, and must be evaluated carefully. When considering purchas

coverage, you should review all the potential risks and the financial impact of the

risks on your financial health. This will help you determine what options to look

and what questions to ask. What you need to keep in mind is that you do not want

be underinsured or overinsured, which means you have to do your homework befo

you buy. And as with any type of financial product, you must read the fine print a

consult with a competent advisor.

Today LIC functions with 2048 fully computerized branch offices, 109 divisional offices, 8 zo

offices, 992 satallite offices and the Corporate office. LICs Wide Area Network covers 109 divisiooffices and connects all the branches through a Metro Area Network. LIC has tied up with some Ban

and Service providers to offer on-line premium collection facility in selected cities. LICs ECS a

ATM premium payment facility is an addition to customer convenience. Apart from on-line Kio

and IVRS, Info Centres have been commissioned at Mumbai, Ahmedabad, Bangalore, Chenn

Hyderabad, Kolkata, New Delhi, Pune and many other cities. With a vision of providing easy access

its policyholders, LIC has launched its SATELLITE SAMPARK offices. The satellite offices

smaller, leaner and closer to the customer. The digitalized records of the satellite offices will facili

anywhere servicing and many other conveniences in the future.

Home Loans- It provides a range of services serving various needs of individuals, NRIs

pensioners related to housing.

Corporate Loans- The company offers financial assistance to corporate for purchasing, constructi

renovating and repair of housing property.

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Annexure:-

Profit & Loss - L IC L td.

Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

12Months 12Months 12Months 12Months 12Months

INCOME:

Sales Turnover 7575.92 6114.86 4620.09 3456.24 2880.17

Excise Duty .00 .00 .00 .00 .00

NET SALES 7575.92 6114.86 4620.09 3456.24 2880.17

Other Income 0 0 0 0 0

TOTAL INCOME 7658.88 6137.95 4639.34 3475.46 2893.33

EXPENDITURE:

Manufacturing Expenses .00 .00 .00 .00 .00

Material Consumed .00 .00 .00 .00 .00

Personal Expenses 90.41 72.44 68.09 48.49 44.86

Selling Expenses .00 110.85 98.80 84.35 65.04

Administrative Expenses 262.78 202.46 302.41 14.69 44.43

Expenses Capitalised .00 .00 .00 .00 .00

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Provisions Made .00 .00 .00 .00 .00

TOTAL EXPENDITURE 353.18 385.75 469.29 147.53 154.33

Operating Profit 7222.74 5729.11 4150.80 3308.71 2725.84

EBITDA 7305.70 5752.21 4170.04 3327.92 2739.00

Depreciation 7.53 7.42 6.24 6.37 4.99

Other Write-offs .00 .00 .38 .00 .00

EBIT 7298.16 5744.78 4163.42 3321.55 2734.01

Interest 5924.60 4591.07 3098.09 2411.17 2017.36

EBT 1373.57 1153.72 1065.34 910.38 716.65

Taxes 350.36 316.72 319.67 249.09 191.93

Profit and Loss for the Year 1023.21 837.00 745.66 661.29 524.72

Non Recurring Items .00 77.09 228.60 -.07 10.58

Other Non Cash Adjustments .00 .11 .23 .95 -3.69

Other Adjustments .00 .00 .00 .00 .00

REPORTED PAT 1023.21 914.20 974.49 662.18 531.62

KEY ITEMS

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Preference Dividend .00 .00 .00 .00 .00

Equity Dividend 191.77 181.68 166.13 142.40 110.41

Equity Dividend (%) 189.88 179.88 174.88 149.89 129.90

Shares in Issue (Lakhs) 5046.63 5046.63 4746.63 949.33 849.33

EPS - Annualised (Rs) 20.28 18.11 20.53 69.75 62.59

Capital Structure - LIC Housing Finance Ltd.

Period Instrument

Authorized

Capital

Issued

Capital - P A I D U P -

From To (Rs. cr) (Rs. cr)

Shares

(nos)

Face

Value

Capital

(Rs. Cr)

2012 2013 Equity Share 150.0 100.9 504663000 2.0 100.9

2011 2012 Equity Share 150.0 100.9 504663000 2.0 100.9

2010 2011 Equity Share 150.0 94.9 474663000 2.0 94.9

2009 2010 Equity Share 150.0 94.9 94932600 10.0 94.9

2008 2009 Equity Share 150.0 84.9 84932600 10.0 84.

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BalanceSheet - LIC Housing Finance Ltd.

Particulars Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Liabilities 12 Months 12 Months

12

Months

12

Months

12

Months

Share Capital 101.00 101.00 95.00 95.00 85.00

Reserves & Surplus 6380.29 5581.21 4074.11 3292.68 2149.10

Net Worth 6481.29 5682.21 4169.10 3387.67 2234.10

Secured Loan 54975.35 44614.54 40700.61 31014.98 23523.95

Unsecured Loan 3729.83 3255.37 4462.22 3743.17 1897.71

TOTAL LIABILITIES 65186.47 53552.12 49331.94 38145.83 27655.75

Assets

Gross Block 115.25 108.15 72.81 66.34 59.63

(-) Acc. Depreciation 52.88 45.92 38.96 32.83 27.30

Net Block 62.37 62.24 33.85 33.51 32.33

Capital Work in Progress .00 14.53 13.58 2.11 2.19

Investments 184.63 164.03 1403.15 1388.70 1129.15

Inventories .00 .00 .00 .00 .00

Sundry Debtors 60.63 65.08 .00 .00 .00

Cash and Bank 1465.56 279.29 435.19 267.00 135.29

Loans and Advances 78787.04 63847.42 51747.07 38553.65 28086.12

Total Current Assets 80313.23 64191.79 52182.25 38820.65 28221.41

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Current Liabilities 14389.24 9988.32 3601.35 1691.36 1338.78

Provisions 984.53 892.13 699.55 407.78 390.55

Total Current Liabilities 15373.76 10880.45 4300.90 2099.14 1729.32

NET CURRENT ASSETS 64939.47 53311.34 47881.36 36721.51 26492.09

Misc. Expenses .00 .00 .00 .00 .00

TOTAL

ASSETS(A+B+C+D+E) 65186.47 53552.12 49331.94 38145.83 27655.75

Shareholding Pattern - LIC Housing Finance Ltd.

Holder's Name No of Shares % Share Holding

Promoters 173442495 36.54%

ForeignInstitutions 190496396 40.13%

GeneralPublic 48444281 10.21%

NBanksMutualFunds 30630944 6.45%

FinancialInstitutions 13940997 2.94%

OtherCompanies 13175047 2.78%

Others 1808563 0.38%

ForeignNRI 1738098 0.37%

ForeignOcb 170294 0.04%

CentralGovt 39425 0.01%

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LEARNING FROM THE REPORT

Life Insurance in its modern form came to India from England in the year 1818. Oriental Life Insura

Company started by Europeans in Calcutta was the first life insurance company on Indian Soil. All the insura

companies established during that period were brought up with the purpose of looking after the needs

European community and Indian natives were not being insured by these companies. However, later with

efforts of eminent people like Babu Muttylal Seal, the foreign life insurance companies started insuring Ind

lives.

LIC had 5 zonal offices, 33 divisional offices and 212 branch offices, apart from its corporate office in the y

1956. Since life insurance contracts are long term contracts and during the currency of the policy it require

variety of services need was felt in the later years to expand the operations and place a branch office at e

district headquarter.

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REFERENCES

1. WWW.GOOGLE.COM2. WWW.LIC.CO.INDIA3. WWW.ECONOMICTIMES.COM4. WWW.MONEYCONTROL.COM5. WWW.SCRIBD.COM

http://www.lic.co.india/http://www.lic.co.india/http://www.economictimes.com/http://www.economictimes.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.scribd.com/http://www.scribd.com/http://www.scribd.com/http://www.moneycontrol.com/http://www.economictimes.com/http://www.lic.co.india/