Comparitive Analysis of Lic

7/29/2019 Comparitive Analysis of Lic

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A SUMM

CAMPARATI

CORP

For the partial fulfil

Forwarded by-Prof. Govindarajan chettyS.A.T.I. MBA Dept.

M

Bar

SESSION

2010-2012

R TRAINING PROJECT ON

E STUDY OF LIFE INSUR

RATION OF INDIA

SUBMITTED BY:

Rohit Bundela

ment of Master of Business Admini

GuidedArvind k.

(Developmen

SUBMITTED TO-

A Dept., S.A.T.I., vidisha

Affiliated to

atullah University, BhopalSession 2010-2012

NCE

tration

y-hare

officer)


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CONTENTS

CERTIFICATE OF COMPANY... i

ACKNOWLEDGEMENT...ii

1- E X E C U T I V E S U M M E R Y

2- INTRODUCTION

3- RESEARCH OBJECTIVE & METHODOLOGY

4- ORIGIN OF INSURANCE

5- HISTORY OF INSURANCE

6- ORIGIN OF LIC

7- HISTORY OF LIC

8- TYPES OF LIFE INSURANCE

9- OBJECTIVE OF LIC

10- MISSION & VISION

11- BENEFITS OF LIC

12- TAX & LIFE INSURANCE

13- SPECIAL INVESTMENT NORMS OF LIC

14- LIC PROFIT PLUS MATCHING BENEFITS OF

15- NEEDS OF LIFE INSURANCE

16- OVERVIEW

17- CONCLUSION

19. BIBLOGRAPHY


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DECLARATION

I hereby declare that t SamratAshok Technological Institute, Vidisha Barkatullah University, Bhopal Master of Business Administration outcome of my own

project to any universi

DECLARATION

is project report submitted toSamratAshok Technological Institute, Vidisha affiliateBarkatullah University, Bhopal in partial fulfillmeMaster of Business Administration & this project i

work & I have not submitte

y for the award of any degree.

Rohit

M.B.A.

DECLARATION

SamratAshok Technological Institute, Vidisha toBarkatullah University, Bhopal t ofMaster of Business Administration s the

this

undela

3rdSem


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ACKNOWLEDGEMENTAny accomplishmentwork is no different.as I would like to adwere part of this prounending support riconceived. In particu Prof. GovindarajanChetty for proviencouragement and v

I also wfaculty members of Department of Management, SamratAshok Technological Institute facilities for the time

ACKNOWLEDGEMENT equires the effort of many peopl

So before we get into thick of ta few heartfelt words for the pect in numerous ways. Peopleht from the stage the projectlar, I wish to thankProf. GovindarajanChetty ing me proper guidance,luable suggestion for the report.

ish to express our sincere thanksDepartment of M anagement, SamratAshok Technological Institute for extending thecompletion of the report.

Rohit

M.B.A.

ACKNOWLEDGEMENT and this

he thingsople whoho gave

dea was Prof. GovindarajanChetty constant

to all the

Department of M anagement, SamratAshok Technological Institute necessary

undela

3rdSem


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EXECUTIVE SUMMARY


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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 pl eased to know about the consumers wan ts 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 customers. 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

se rvices in the insurance sector.


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INTRODUCTION


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INTRODUCTION

Insurance is a social device where uncertain risks of individuals may

be combined in a group and thus made more certain - small per iodic

contributions by the individuals provide a found out of which those

who suffer losses may be reimbursed. In addition to being a means to

protect onesel f, the insurance Industry is an eff ic ient conduit for the

saving of people to be channeled towards economic growth. In India,

the Insurance Industry7 is more than150 years old. Today, it is

monopolized by two PSU's in their respective fields of life and

General Insurance. However, with the successful passage IRDA Bill

through both houses of parliament in December 1999 the sector has

been opened up to private players. This will provided much. Needed

impetus to the Industry and will improve the quality of service and

products and will al so increase employment opportunit ies. There are

still some issues their need to be sorted out, particularly with regard

to the status of intermediaries as envisaged by the Insurance

Regulatory Authority.


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RESEARCH OBJECTIVE & METHODOLOGY


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RESEARCH OBJECTIVE

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.


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RESEARCH METHODOLOGY

To conduct the market research first of all it is necessary to create a

research design. A research design is basically a blue print of how a

research is to be conducted, it may include;

1.Choosing the approach

2.Determining the types of data needed.

3.Locating the source of data.

4.Choosing a method of data


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RESEARCH DESIGN

Basically there are 3 types of approaches used during the any

research:

Exploratory

Descriptive

Experimental.

During this research Descriptive and Exploratory approach is taken

into consideration because of the availability of relevant information

to describe the relationships between the marketing problem and the

available information.


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TYPES OF DATA USED:

Both primary and secondary data is used in the research.

Data Collection Methods

To conduct the market research the data is collected by two sources.

SECONDARY DATA

Secondary data is one which already exists and is collected from the

publ ished sources .

The sources from which secondary data was collected are:

Newspapers and Magazines like Economic Times, Insurance Times,

and Insurance Post.

Internet

PRIMARY DATA

The primary sources of data refer to the first hand information

Primary data is collected during the survey with the help of

Questionnaires.


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ORIGIN OF INSURANCE


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ORIGIN OF INSURANCE

About 4,500 years ago, in the ancient land of Babylonia, which is today knownas Iraq, traders used to bear risk of the caravan trade by giving loans that had to

be later repaid with interest when the goods arrived safely. In 2100 BC, the

Code of Hammurabi granted legal status to the practice. That was the

beginning of Insurance. Life insurance had its origins in ancient Rome, the

capital city of Italy where citizens formed burial clubs that would meet the

funeral expenses of its members as well as help survivors by making some

payments. As European civilization progressed, its social institutions and

welfare practices also got more and more refined. With the discovery of new

lands, sea routes and the consequent growth in trade, Medieval guilds took it

upon themselves to protect their member traders from loss on account of fire,

shipwrecks and the like. Since most of the trade took place by sea, there was

also the fear of pirates. So these guilds even offered ransom for members held

captive by pirates. Burial expenses and support in times of sickness and

poverty were other services offered. Essentially, all these revolved around the

concept of insurance or risk coverage. That's how old these concepts are,

really. In 1347, in Genoa, European maritime nations entered into the earliest

known insurance contract and decided to accept marine insurance as a practice.

Insurance as we know it today owes its existence to 17th century England. In

fact, it began taking shape in 1688 at a rather interesting place called Lloyd'sCoffee House in London, where merchants, ship-owners and underwriters met

to discuss and transact business. Back to the 17th century. In 1693, astronomer

Edmond Halley constructed the first mortality table to provide a link between

the life insurance premium and the average life spans based on statistical laws

of mortality and compound interest. In 1756, Joseph Dodson reworked the


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table, linking premium rate to age. The first stock companies to get into the

business of insurance were chartered in England in 1720. The year 1735 saw

the birth of the first insurance company in the American colonies in

Charleston, SC.

In 1759, the Presbyterian Synod of Philadelphia sponsored the first life

insurance corporation in America for the benefit of ministers and their

dependents. The 19th century saw huge developments in the field of insurance,

with newer products being devised to meet the growing needs of urbanization

and industrialization. In

1835, the infamous New York fire drew people's attention to the need to

provide for sudden and large losses. Two years later, Massachusetts becamethe first state to require companies by law to maintain such reserves. The great

Chicago fire of

1871 further emphasized how fires can cause huge losses in densely populated

modern cities. The practice of reinsurance, wherein the risks are spread among

several companies, was devised specifically for such situations. There were

more offshoots of the process of industrialization. In 1897, the British

government passed the Workmen's Compensation Act, which made it

mandatory for a company to insure its employees against industrial accidents.

In the 19th century, many societies were founded to insure the life and health

of their members, while fraternal orders provided low-cost, members-only

insurance. Even today, such fraternal orders continue to provide insurance

coverage to members as do most labour organizations. Many employers

sponsor group insurance policies for their employees, providing not just life

insurance, but sickness and accident benefits and old-age pensions. Insurance

in India can be traced back to the Vedas. For instance, yogakshema, the name

of Life Insurance Corporation of India's corporate headquarters, is derived

from the Rig Veda. The term suggests that a form of "community insurance"

was prevalent around 1000 BC and practiced by the Aryans Burial societies of


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the kind found in ancient Rome were formed in the Buddhist period to help

families build houses, protect widows and children.

Bombay Mutual Assurance Society, the first Indian life assurance society, was

formed in 1870. Other companies like Oriental, Bharat and Empire of India

were also set up in the 1870-90s. It was during the swadeshi movement in the

early

20th century that insurance witnessed a big boom in India with several more

companies being set up. The Insurance Regulatory & Development Authority,

an autonomous insurance regulator set up in 2000, has extensive powers to

oversee the insurance business and regulate in a manner that will safeguard the

interests of the insured. In 1st September 1956,under the first Indian PrimeMinister Pandit Jawaharlal Nehru, the LIC(Life Insurance Corporation) the

most trusted insurance co0mpany was established


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HISTORY OF INSURENCE


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HISTORY

The origin of insurance is very old .The time when we were not even born;

man has sought some sort of protection from the unpredictable calamities ofthe nature. The basic urge in man to secure himself against any form of risk

and uncertainty led to the origin of insurance. The insurance came to India

from UK; with the establishment of the Oriental Life insurance Corporation in

1818.The Indian life insurance company act 1912 was the first statutory body

that started to regulate

the life insurance business in India. By 1956 about 154 Indian, 16 foreign and

75 provident firm sewer been established in India. Then the central

government took over these companies and as a result the LIC was formed.

Since then LIC has worked towards spreading life insurance and building a

wide network across the length and the breath of the country. After the

liberalization the entrance of foreign players has added to the competition in

the market. The General insurance business in India, on the other hand, can

trace its roots to the Triton Insurance Company Ltd., the first general insurance

company established in the year 1850 in Calcutta by the British. In 1957

General Insurance Council, a wing of the Insurance Association of India,

frames a code of conduct for ensuring fair conduct and sound business

practices. In 1972 The General Insurance Business (Nationalization) Act,

1972 nationalized the general insurance business in India with effect from 1st

January 1973. It was after this that 107 insurer amalgamated and grouped intofour companies viz. the National Insurance Company Ltd., the New India

Assurance Company Ltd., the Oriental Insurance Company Ltd. and the United

India Insurance Company Ltd. GIC incorporated as a company


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LIFE INSURANCE IN INDIA ORIGIN OF LIC


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LIFE INSURANCE IN INDIA ORIGIN OF LIC

Almost 4,500 years ago, in the ancient land of Babylonia, traders used to bear

risk of the caravan trade by giving loans that had to be later repaid with interest

when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted

legal status to the practice. Life insurance had its origins in ancient Rome,

where citizens formed burial clubs that would meet the funeral expenses of its

members as well

as help survivors by making some payments. As European civilization

progressed, its social institutions and welfare practices also got more and more

refined. With the discovery of new lands, sea routes and the consequent growth

in trade,

Medical guilds took it upon themselves to protect their member traders from

loss on account of fire, shipwrecks and the like. Since most of the trade took

place by sea, there was also the fear of pirates. So these guilds even offered

ransom for members held captive by pirates. Burial expenses and support intimes of sickness and poverty were other services offered. Essentially, all these

revolved around the concept of insurance or risk coverage. That's how old

these concepts are, really.

In 1347, in Genoa, European maritime nations entered into the earliest known

insurance contract and decided to accept marine insurance as a practice.


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The first step...

Insurance as we know it today owes its existence to 17th century England. In

fact, it began taking shape in 1688 at a rather interesting place called Lloyd'sCoffee House in London, where merchants, ship-owners and underwriters met

to discuss and transact business. By the end of the 18th century, Lloyd's had

brewed enough business to become one of the first modern insurance

companies. Back to the 17th century. In 1693, astronomer Edmond Halley

constructed the first mortality table to provide a link between the life insurance

premium and the average life spans based on statistical laws of mortality and

compound interest. In 1756, Joseph Dodson reworked the table, linking

premium rate to age. The first stock

companies to get into the business of insurance were chartered in England in

1720. The year 1735 saw the birth of the first insurance company in the

American colonies in Charleston, SC. In 1759, the Presbyterian Synod of

Philadelphia sponsored the first life insurance corporation in America for the

benefit of ministers and their dependents. However, it was after 1840 that life

insurance really took off in a big way. The trigger: reducing opposition from

religious groups. The 19th century saw huge developments in the field of

insurance, with newer products being devised to meet the growing needs of

urbanization and industrialization. In 1835, the infamous New York fire drew

people's attention to the need to provide for sudden and large losses. Two yearslater, Massachusetts became the first state to require companies by law to

maintain such reserves. The great Chicago fire of 1871 further emphasized

how fires can cause huge losses in densely populated modern cities There were

more offshoots of the process of industrialization. In 1897, the British

government passed the Workmen's Compensation Act, which made it


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mandatory for a company to insure its employees against industrial accidents.

With the advent of the automobile, public liability insurance, which first made

its appearance in the 1880s, gained importance and acceptance? In the 19th

century, many societies were founded to insure the life and health of their

members, while fraternal orders provided low- cost, members-only insurance.

Even today, such fraternal orders continue to provide insurance coverage to

members as do most labor organizations. Many employers sponsor group

insurance policies for their employees, providing not

just life insurance, but sickness and accident benefits and old-age pensions.

Employees contribute a certain percentage of the premium for these policies.

Insurance in India can be traced back to the Vedas. For instance, yogakshema,the name of Life Insurance Corporation of India's corporate headquarters, is

derived from the Rig Veda. The term suggests that a form of "community

insurance" was prevalent around 1000 BC and practiced by the Aryans.

Burial societies of the kind found in ancient Rome were formed in the

Buddhist period to help families build houses, protect widows and children.

Bombay Mutual Assurance Society, the first Indian life assurance society, was

formed in

1870. Other companies like Oriental, Bharat and Empire of India were also set

up in the 1870-90s. It was during the swadeshi movement in the early 20th

century that insurance witnessed a big boom in India with several more

companies being set up. Act of 1938 that looked into investments, expenditure

and management of these companies' funds By the mid-1950s, there were

around 170 insurance companies and 80 provident fund societies in the

country's life insurance scene. However, in the absence of regulatory systems,

scams and irregularities were almost a way of life at most of these companies.

For years thereafter, insurance remained a monopoly of the public sector. It

was only after seven years of deliberation and debate - after the RN Malhotra

Committee report of 1994 became the first serious document calling for the re-


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opening up of the insurance sector to private players -- that the sector was

finally opened up to private players in 2001.

The Insurance Regulatory & Development Authority, an autonomous

insurance regulator set up in 2000, has extensive powers to oversee the

insurance business and regulate in a manner that will safeguard the interests of

the insured.


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HISTORY OF LIC


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HISTORY OF LIC

The story of insurance is probably as old as the story of mankind. The sameinstinct that prompts modern businessmen today to secure themselves against

loss and disaster existed in primitive men also. They too sought to avert the

evil consequences of fire and flood and loss of life and were willing to make

some sort of sacrifice in order to achieve security. Though the concept of

insurance is

largely a development of the recent past, particularly after the industrial era

past few centuries yet its beginnings date back almost 6000 years. Life

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

Oriental Life Insurance Company started by Europeans in Calcutta was the

first life insurance company on Indian Soil. All the insurance companies

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

after the needs of European community and Indian natives were not being

insured by these companies.

Bharat Insurance Company (1896) was also one of such companies inspired by

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

insurance companies. The United India in Madras, National Indian and

National Insurance in Calcutta and the Co-operative Assurance at Lahore were

established in 1911. The Life Insurance Companies Act, 1912 made it

necessary that the premium rate tables and periodical valuations of companiesshould be certified by an actuary. The Insurance Act 1938 was the first

legislation governing not only life insurance but also non-life insurance to

provide strict state control over insurance business. The demand for

nationalization of life insurance industry was made repeatedly in the past but it

gathered momentum in 1944 when a bill to amend the Life Insurance Act 1938


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was introduced in the Legislative was accomplished in two stages; initially the

management of the companies was taken over by means of an Ordinance, and

later, the ownership too by means of a comprehensive bill. The

Parliament of India passed the Life Insurance Corporation Act on the 19th of

June

1956, and the Life Insurance Corporation of India was created on 1st

September,

1956, with the objective of spreading life insurance much more widely and in

particular to the rural areas with a view to reach all insurable persons in thecountry, providing them adequate financial cover at a reasonable cost. Today

LIC

functions with 2048 fully computerized branch offices, 109 divisional offices,

8 zonal offices, 992 satellite offices and the Corporate office. LICs Wide Area

Network covers 109 divisional offices and connects all the branches through a

Metro Area Network. LIC has tied up with some Banks and Service providers

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

ATM premium payment facility is an addition to customer convenience. Apart

from on- line Kiosks and IVRS, Info Centers have been commissioned at

Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi,

Pune and many other cities. With a vision of providing easy access to its

policyholders, LIC has launched its SATELLITE SAMPARK offices.

The satellite offices are smaller, leaner and closer to the customer. The

digitalized records of the satellite offices will facilitate anywhere servicing and

many other conveniences in the future. LIC continues to be the dominant life

insurer even in the liberalized scenario of Indian insurance and is moving fast

on a new growth trajectory surpassing its own past records. LIC has issued


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over one crore policies during the current year. It has crossed the milestone of

issuing 1,01,32,955 new policies by 15th Oct, 2010, posting a healthy growth

rate of 16.67% over the corresponding period of the previous year. From then

to now, LIC has crossed many milestones and has set unprecedented

performance records in various aspects of life insurance business. The same

motives which inspired our forefathers to bring insurance into existence in this

country inspire us at LIC to take this message of protection to light the lamps

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

security to their families

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 started functioning.

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

company started its business.

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

regulate the life insurance business.

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

to collect statistical information about both life and non-life insurance

businesses.

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

with the objective of protecting the interests of the insuring public.


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

the central government and nationalized.


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TYPES OF LIFE INSURANCE


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TYPES OF LIFE INSURANCE

Life insurance may be divided into two basic classes temporary and

permanent or following subclasses term, universal, whole life and

endowment life insurance.

Term Insurance:

Term assurance provides life insurance coverage for a specified term of years

in exchange for a specified premium. The policy does not accumulate cash

value. Term is generally considered "pure" insurance, where the premium buysprotection in the event of death and nothing else.

There are three key factors to be considered in term insurance: Face amount

(protection or death benefit),

Premium to be paid (cost to the insured), Length of coverage (term).

Various insurance companies sell term insurance with many different

combinations of these three parameters. The face amount can remain constant

or decline. The term can be for one or more years. The premium can remain

level or increase. Common types of term insurance include Level, Annual

Renewable and Mortgage insurance."

Level Term policy has the premium fixed for a period of time longer than a

year. These terms are commonly 5, 10, 15, 20, 25, 30 and even 35 years. Level

term is often used for long term planning and asset management because

premiums remain consistent year to year and can be budgeted long term. At the

end of the term, some policies contain a renewal or conversion option.

Guaranteed Renewal, the insurance company guarantees it will issue a policy


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of equal or lesser amount without regard to the insurability of the insured and

with a premium set for the

insured's age at that time. Annual renewable term is a one year policy but the

insurance company guarantees it will issue a policy of equal or lesser amount

without regard to the insurability of the insured and with a premium set for the

insured's age at that time.

Another common type of term insurance is mortgage insurance, which is

usually a level premium, declining face value policy. The face amount is

intended to equal the amount of the mortgage on the policy owners residence

so the mortgage will be paid if the insured dies.

A policy holder insures his life for a specified term. If he dies before that

specified term is up (with the exception of suicide see below), his estate or

named beneficiary receives a payout. If he does not die before the term is up,

he receives nothing. However, in some European countries (notably Serbia),

insurance policy is such that the policy holder receives the amount he has

insured himself to, or the amount he has paid to the insurance company in the

past years..


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Permanent Life Insurance

Permanent life insurance is life insurance that remains in force (in-line) until

the policy matures (pays out), unless the owner fails to pay the premium when

due (the policy expires OR policies lapse). The policy cannot be canceled by

the insurer for any reason except fraud in the application, and that cancellation

must occur within a period of time defined by law (usually two years).

Permanent insurance builds a cash value that reduces the amount at risk to the

insurance company and thus the insurance expense over time. This means that

a policy with a million dollar face value can be relatively expensive to a 70

year old. The owner can access the money in the cash value by withdrawingmoney, borrowing the

cash value, or surrendering the policy and receiving the surrender value.

The four basic types of permanent insurance are whole life, universal life,

limited pay and endowment.

1. Whole life coverage:

Whole life insurance provides for a level premium, and a cash value table

included in the policy guaranteed by the company. The primary advantages of

whole life are guaranteed death benefits, guaranteed cash values, fixed and

known annual premiums, and mortality and expense charges will not reduce

the cash value shown in the policy. The primary disadvantages of whole life

are premium inflexibility, and the internal rate of return in the policy may not

be competitive with other savings alternatives. The death benefit can also be

increased through

the use of policy dividends. Dividends cannot be guaranteed and may be higher

or lower than historical rates over time. Premiums are much higher than term


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insurance in the short term, but cumulative premiums are roughly equal if

policies are kept in force until average life expectancy.

Cash value can be accessed at any time through policy "loans" and are received

"income-tax free". Since these loans decrease the death benefit if not paid

back, payback is optional. Cash values support the death benefit so only the

death benefit is paid out.

Dividends can be utilized in many ways. First, if Paid up additions is elected,

dividend cash values will purchase additional death benefit which will increase

the death benefit of the policy to the named beneficiary. Another alternative isto opt in for 'reduced premiums' on some policies. This reduces the owed

premiums by the unguaranteed dividends amount. A third option allows the

owner to take the dividends as they are paid out. (Although some policies

provide other/different/less options than these - it depends on the company for

some cases)

2. Universal life coverage:

Universal life insurance (UL) is a relatively new insurance product intended to

provide permanent insurance coverage with greater flexibility in premium

payment and the potential for greater growth of cash values. There are several

types of universal life insurance policies which include "interest sensitive"

(also known as "traditional fixed universal life insurance"), variable universal

life (VUL), guaranteed death benefit, and equity indexed universal life

insurance.

A universal life insurance policy includes a cash value. Premiums increase the

cash values, but the cost of insurance (along with any other charges assessed

by the insurance company) reduces cash values. However, with the exception


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of VUL, interest is credited on cash values at a rate specified by the company

and may also increase cash values. With VUL, cash values will ebb and flow

relative to the performance of the investment subaccounts the policy owner has

chosen. The surrender value of the policy is the amount payable to the policy

owner after applicable surrender charges, if any.

Universal life insurance addresses the perceived disadvantages of whole life

namely that premiums and death benefit are fixed. With universal life, both the

premiums and death benefit are flexible. Except with regards to guaranteed

death benefit universal life, this flexibility comes at a price: reduced

guarantees.

Depending on how interest is credited, the internal rate of return can be higher

because it moves with prevailing interest rates (interest-sensitive) or the

financial markets (Equity Indexed Universal Life and Variable Universal Life).

Mortality costs and administrative charges are known. And cash value may be

considered more easily attainable because the owner can discontinue premiums

if the cash value allows it

Option A is often referred to as a level death benefit. Generally speaking, the

death benefit will remain level for the life of the insured and premiums are

expected to be lower than policies with an Option B death benefit.

Option B pays the face amount plus the cash value. If cash values grow over

time, so would the death benefit which is payable to the insured's beneficiaries.

If cash values decline, the death benefit would also decline. Presumably option

B death benefit policies require greater premium than option A policies.


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3. Limited-pay:

Another type of permanent insurance is Limited-pay life insurance, in which

all the premiums are paid over a specified period after which no additional

premiums are due to keep the policy in force. Common limited pay periods

include 10-year, 20-year, and paid-up at age 65.

4. Endowments:

Endowments are policies in which the cash value built up inside the policy,

equals the death benefit (face amount) at a certain age. The age thiscommences is

known as the endowment age. Endowments are considerably more expensive

(in terms of annual premiums) than either whole life or universal life because

the premium paying period is shortened and the endowment date is earlier.

In the United States, the Technical Corrections Act of 1988 tightened the rules

on tax shelters (creating modified endowments). These follow tax rules as

annuities and IRAs do.

Accidental Death

Accidental death is a limited life insurance that is designed to cover the insured

when they pass away due to an accident. Accidents include anything from an

injury, but do not typically cover any deaths resulting from health problems or

suicide. Because they only cover accidents, these policies are much less

expensive than other life insurances. It is also very commonly offered as

"accidental death and dismemberment insurance", also known as an AD&D

policy. In an AD&D policy, benefits are available not only for accidental

death, but also for loss of limbs or bodily functions such as sight and hearing,

etc. Accidental death and AD&D policies very rarely pay a benefit; either the


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cause of death is not covered, or the coverage is not maintained after the

accident until death occurs. To be

aware of what coverage they have, an insured should always review their

policy for what it covers and what it excludes. Often, it does not cover an

insured who puts themselves at risk in activities such as: parachuting, flying an

airplane, professional sports, or involvement in a war (military or not).

Accidental death benefits can also be added to a standard life insurance policy

as a rider. If this rider is purchased, the policy will generally pay double the

face amount if the insured dies due to an accident. This used to be commonly

referred to as double indemnity coverage. In some cases, some companies mayeven offer triple indemnity coverage

Related Life Insurance Products

Riders are modifications to the insurance policy added at the same time the

policy is issued. These riders change the basic policy to provide some feature

desired by the policy owner. A common rider is accidental death, which used

to be commonly referred to as "double indemnity", which pays twice the

amount of the policy face value if death results from accidental causes, as if

both a full coverage policy and an accidental death policy were in effect on the

insured. Another common rider is premium waiver, which waives future

premiums if the insured becomes disabled. Joint life insurance is either a term

or permanent policy insuring two or more lives with the proceeds payable on

the first death or second death. Survivorship life: is a whole life policy insuring

two lives with the proceeds payable on the second (later) death. Single

premium whole life: is a policy with only one premium which is payable at the

time the policy is issued. Modified whole life: is a whole life policy that

charges smaller premiums for a specified period of time after which the


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premiums increase for the remainder of the policy. Group life insurance: is

term insurance covering a group of people, usually employees of a company or

members of a union or association. Individual proof of insurability is not

normally a consideration in the underwriting. Rather, the underwriter considers

the size and turnover of the group, and the financial strength of the group.

Senior and preneed products: Insurance companies have in recent years

developed products to offer to niche markets, most notably targeting the senior

market to address needs of an aging population. Many companies offer policies

tailored to the needs of senior applicants. Preneed (or prepaid) insurance

policies: are whole life policies that, although available at any age, are usually

offered to older applicants as well. This type of insurance is designedspecifically to cover funeral expenses when the insured person dies. In many

cases, the applicant signs a prefunded funeral arrangement with a funeral home

at the time the policy is applied for.

Investment policies

Some policies allow the policyholder to participate in the profits of the

insurance company these are with-profits policies. Other policies have no

rights to participate in the profits of the company, these are non-profit policies.

With-profits policies are used as a form of collective investment to achieve

capital growth. Other policies offer a guaranteed return not dependent on the

company's underlying investment performance; these are often referred to as

without-profit policies which may be construed as a misnomer.


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Investment Bonds

Pensions:Pensions are a form of life assurance. However, whilst basic life assurance,

permanent health insurance and non-pensions annuity business includes anamount of mortality or morbidity risk for the insurer, for pensions there is a

longevity risk.

A pension fund will be built up throughout a person's working life. When the

person retires, the pension will become in payment, and at some stage the

pensioner will buy an annuity contract, which will guarantee a certain pay-out

each month until death.

Annuities:

An annuity is a contract with an insurance company whereby the insured pays

an initial premium or premiums into a tax-deferred account, which pays out a

sum at pre-determined intervals. There are two periods: the accumulation

(when payments are paid into the account) and the annuitization (when the

insurance company pays out). IRS rules restrict how you take money out of an

annuity. Distributions may be taxable and/or penalize


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OBJECTIVES OF LIC


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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 bestadvantage 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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MISSION &VISION


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MISSION &VISION

Mission:

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

providing products and services of aspired attributes with competitive returns,

and by rendering resources for economic development."

Vision:

"A trans-nationally competitive financial conglomerate of significance to

societies and Pride of India."


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BENEFITS WITH LIC


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BENEFITS WITH LIC

This is like a post office R.D. scheme. You can deposit yearly, half

yearly, Quarterly or Monthly (ECS) in LIC scheme.

Maturity received In LIC scheme is tax free under section 10-10D of

income tax act.

You can withdraw partial or full amount if necessary after 10 years.

The amount deposited in LIC is exempted under section 80C of income

tax act.

You can continue LIC scheme after 10 years. You cannot continue Post

Office scheme after 10 years.

In case of death 250 times monthly premium + total premium paid (1st

years premium & extra Premium paid) + LA, if any payable.

If you forget to take maturity at the end of 10 years. You can get return

beyond 10 years in LIC scheme.

LIC policy gives Maturity Benefit to the customer.

Auto-cover facility is a very good facility in these policies. LIC policy

gives you a Death Benefit with the investment. Time to time company

provide Bonus to the customers. Company gives Assured Benefit to the

customers.

LIC policies give Tax Benefits to the policy holders. It gives a good

Surrender Value to the clients.

LIC provide Accidental Death And Disability Benefit to policy holders.

LIC give Guaranteed Surrender Value in case of surrender the policy.

LIC provide Paid Up Value to the policy customers.


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TAX AND LIFE INSURANCE


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TAX AND LIFE INSURANCE

Taxation of life insurance in the United States

Premiums paid by the policy owner are normally not deductible for federal and

state income tax purposes. Proceeds paid by the insurer upon death of the

insured are not included in gross income for federal and state income tax

purposes; however, if the proceeds are included in the "estate" of the deceased,

it is likely they will be subject to federal and state estate and inheritance tax.

Cash value increases within the policy are not subject to income taxes unless

certain events occur. For this reason, insurance policies can be a legal and

legitimate tax shelter wherein savings can increase without taxation until the

owner withdraws the money from the policy. On flexible-premium policies,

large deposits of premium could cause the contract to be considered a

"Modified Endowment Contract" by the Internal Revenue Service (IRS), which

negates many of the tax advantages associated with life insurance. The

insurance company, in most cases, will inform the policy owner of this dangerbefore applying their premium. The tax ramifications of life insurance are

complex. The policy owner would be well advised to carefully consider them.

As always, the United States Congress or the state legislatures can change the

tax laws at any time.


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Taxation of life assurance in the United Kingdom

Premiums are not usually allowable against income tax or corporation tax,

however qualifying policies issued prior to 14 March 1984 does still attract

LAPR (Life Assurance Premium Relief) at 15% (with the net premium being

collected from the policyholder). Non-investment life policies do not normally

attract either income tax or capital gains tax on claim. If the policy has as

investment element such as an endowment policy, whole of life policy or an

investment bond then the tax treatment is determined by the qualifying status

of the policy.

Qualifying status is determined at the outset of the policy if the contract meetscertain criteria. Essentially, long term contracts (10 years plus) tend to be

qualifying policies and the proceeds are free from income tax and capital gains

tax. Single premium contracts and those run for a short term are subject to

income tax depending upon your marginal rate in the year you make a gain.

All (UK) insurers pay a special rate of corporation tax on the profits from their

life book; this is deemed as meeting the lower rate (20% in 201011) liability

for policyholders. Therefore a policyholder who is a higher rate taxpayer

(40% in 2010-11), or becomes one through the transaction, must pay tax on the

gain at the difference between the higher and the lower rate.

This gain is reduced by applying a calculation called top-slicing based on the

number of years the policy has been held. Although this is complicated, the

taxation of life assurance based investment contracts may be beneficial

compared to alternative equity-based collective investment schemes (unit

trusts, investment trusts and OEICs). One feature which especially favors

investment bonds is the '5% cumulative allowance' the ability to draw 5% of

the original investment amount each policy year without being subject to any

taxation on the amount withdrawn. If not used in one year, the 5% allowance


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can roll over into future years, subject to a maximum tax deferred withdrawal

of 100% of the premiums payable. The withdrawal is deemed by the HMRC

(Her Majesty's Revenue and Customs) to be a payment of capital and therefore

the tax liability is deferred until maturity or surrender of the policy. This is an

especially useful tax planning tool for higher rate taxpayers who expect to

become basic rate taxpayers at some predictable point in the future (e.g.

retirement), as at this point the deferred tax liability will not result in tax being

due. The proceeds of a life policy will be included in the estate for death duty

(in the UK, inheritance tax (IHT)) purposes, except that policies written in trust

may fall outside the estate. Trust law and taxation of trusts can be complicated,

so any individual intending to use trusts for tax planning would usually seekprofessional advice from an Independent Financial Adviser (IFA) and/or a

solicitor.

Pension Term Assurance

Although available before April 2011, from this date pension term assurance

became widely available in the UK. Most UK product providers adopted the

name "life insurance with tax relief" for the product. Pension term assurance is

effectively normal term life assurance with tax relief on the premiums. All

premiums are paid net of basic rate tax at 22%, and higher rate tax payers can

gain an extra 18% tax relief via their tax return.

Although not suitable for all, PTA briefly became one of the most common

forms of life assurance sold in the UK until the Chancellor, Gordon Brown,

announced the withdrawal of the scheme in his pre-budget announcement on 6

December

2011.


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SPECIAL INVESTMENT NORMS FOR LIC


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SPECIAL INVESTMENT NORMS FOR LIC

As per last weeks IRDA announcement, no insurance company can invest

more than 10% of its total fund size or 10% of the outstanding shares of theinvestee company (whichever is less) in any company . Since the

announcement the Insurance industry had been abuzz with discussions on how

this would impact the biggest Life Insurance player- LIC. Finance Ministry

resources said that IRDA is examining an option to exempt LIC's existing

investments from these norms and apply these only on its new investments. If

this option is not offered to LIC, it could impact a lot of blue chip companies

like Ranbaxy, ITC, Cipla, and L&T etc where LIC currently has a substantial

stake.

So watch this space to see what IRDA finally mandates the Insurance

behemoth


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LIC PROFIT PLUS: MATCHING BENEFITS

OF INVESTMENT AND INSURANCE


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LIC PROFIT PLUS: MATCHING BENEFITS OF

INVESTMENT AND INSURANCE

This is a unit linked endowment plan that provides complete protection andalso gathers benefits with your investment funds. The policyholder can choose

the level of cover within the limits, which will depend on the policy term

chosen, the amount of premium payable and whether the premium is payable

or collectible one time or regularly during the premium paying term.

The allocated premium will be utilized to purchase units as per the selected

fund type. The premiums can be paid regularly at the intervals or distances of

yearly, half-yearly, monthly. Four major type of investment funds are available

under the profit plus plan, including, short-term investment, bond fund,

secured fund, balanced fund. If the death of the policy holder occurs, higher of

the sum assured shall be available. On the life assured surviving the maturity

date of the contract, an amount equal to the policyholders fund value is

payable. The unit fund is subject to different charges and value of units may

increase or decrease, depending on the net asset value. The LIC profit plus

comprises of various features they are; partial withdrawals, switching, and

discontinuance of the premium. The partial withdrawals can be either in the

form of the fixed amount or else in the form of the fixed number of units.

Under the feature of switching, the policy holder may switch between the sorts

of funds for the integral fundvalue along the period of the policy term which is subject to some charges.

However, once surrendering this LIC profit plus policy, it is impossible to

restore the policy again. If your age is above 18, you may prefer for the

accident benefit that is equal to the amount of life covers subject to a minimum


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of Rs. 25,000/- and maximum of Rs. 50 lakh. If ever the death occurs due to an

accident, an additional sum equal to critical illness benefit shall be payable.

If your age lies between 18 and 50 years, you may opt for the critical illness

benefit that is equal to the life cover subject to a minimum of Rs.50,000 and

maximum of Rs. 5 lakh provided the policy term is 10 years and above. If

premiums are not paid within the grace period, policy will lapse. The same can

be revived within two years from the due date of unpaid premium. Under this

plan, risk will commence either after two years from the date of

commencement of policy or from the policy coinciding with or immediately

following the completion of seven years of age, whichever is later in case theage at entry of the life assured is less than or equal to ten years. There shall not

be any life cover during this period. The value of installment payable on the

date specified shall be subject to investment risk that is the NAV may go up or

down depending upon the performance of the fund. If you are not satisfied

with the terms and conditions of the policy, you may return the policy to us

within 15 days.


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NEED FOR LIFE INSURANCE


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NEED FOR LIFE INSURANCE

The need for life insurance comes from the need to safeguard our family. If

you care for your familys needs you will definitely consider insurance. Today

insurance has become even more important due to the disintegration of the

prevalent joint family system, a system in which a number of generations co-

existed in harmony, a system in which a sense of financial security was always

there as there were more earning members. Times have changed and the

nuclear family has emerged. Apart from other pitfalls of a nuclear family, a

high sense of insecurity is observed in it today besides, the family has shrunk.

Needs are increasing with time and fulfillment of these needs is a big questionmark. How will you be able to satisfy all those needs? Better lifestyle, good

education, your long desired house. But again - you just cannot fritter away all

your earnings. You need to save a part of it for the future too - a wise decision.

This is where

insurance helps you. Factors such as fewer number of earning members, stress,

pollution, increased competition, higher ambitions etc are some of the reasons

why insurance has gained importance and where insurance plays a successful

role. Insurance provides a sense of security to the income earner as also to the

family. Buying insurance frees the individual from unnecessary financial

burden that can otherwise make him spend sleepless nights. From the very

beginning of your life, to your retirement age insurance can take care of all

your needs. Your child needs good education to mould him into a good citizen.

After his schooling he need to

go for higher studies, to gain a professional edge over the others - a necessity

in this age where cut-throat competition is the rule. His career needs have to be

fulfilled. Insurance is a must also because of the uncertain future adversities of

life. Accidents, illnesses, disability etc are facts of life which can be extremely


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devastating. Other than the hospital location, medication bills these may run up

its the aftermath of the incident, the physical well being of the individual that

has to be taken into consideration. Will the individual be in a position to earn

as before? A pertinent question. But what if he is not? Disability can be taken

care of by insurance. Your family will not have to go through the grind due to

your present inability. Moreover, retirement, an age when every individual has

almost fulfilled his responsibilities and looks forward to relaxing can be

painful if not planned

properly. Have you considered the increasing inflation and taxes? Will your

investment offer you attractive returns under such circumstances? Will it take

care of your family after you? An insurance policy will definitely take care ofthese and a lot more. Insurance today has opened up new vistas for every

section of society. Even for the village farmer insurance holds a lot of

potential.

Considering how dependent our agricultural system is on the monsoon, the

farmer sees a dim future. The uncertainty of the monsoon too can be taken care

of by insurance. Looking at the advantages of an insurance policy a number of

farmers have gone in for insurance. Insurance has become a necessity today. It

provides timely financial as also rewards with bonuses.


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OVERVIEW


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OVERVIEW

Parties to contract

There is a difference between the insured and the policy owner (policy holder),

although the owner and the insured are often the same person. For example, if

Joe buys a policy on his own life, he is both the owner and the insured. But if

Jane, his wife, buys a policy on Joe's life, she is the owner and he is the

insured. The policy owner is the guarantee and he or she will be the personwho will pay for the policy. The insured is a participant in the contract, but not

necessarily a party to it. However, "insurable interest" is required to limit an

unrelated party from taking life insurance on, for example, Jane or Joe. Also,

most companies allow the Payer and Owner to be different, e. g., a grandparent

paying premiums for a policy on a child, owned by a grandchild [or vice

versa]. The beneficiary receives policy proceeds upon the insured's death. The

owner designates the beneficiary, but the beneficiary is not a party to the

policy. The owner can change the beneficiary unless the policy has an

irrevocable beneficiary designation. With an irrevocable beneficiary, that

beneficiary must agree to any beneficiary changes, policy assignments, or cash

value borrowing. In cases where the policy owner is not the insured (also

referred to as the celui qui vat or CQV), insurance companies have sought to

limit policy purchases to those with an "insurable interest" in the CQV. For life

insurance policies, close family members and business partners will usually be

found to have an insurable interest. The "insurable interest"

requirement usually demonstrates that the purchaser will actually suffer some


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kind of loss if the CQV dies. Such a requirement prevents people from

benefiting from the purchase of purely speculative policies on people they

expect to die.

With no insurable interest requirement, the risk that a purchaser would murder

the CQV for insurance proceeds would be great. In at least one case, an

insurance company which sold a policy to a purchaser with no insurable

interest (who later murdered the CQV for the proceeds), was found liable in

court for contributing to the wrongful death of the victim (Liberty National

Life v. Weldon, 267 Ala.171 (1957)).

Contract terms

Special provisions may apply, such as suicide clauses wherein the policy

becomes null if the insured commits suicide within a specified time (usually

two years after the purchase date; some states provide a statutory one-year

suicide clause). Any misrepresentations by the insured on the application arealso grounds for nullification. Most US states specify that the contestability

period cannot be longer than two years; only if the insured dies within this

period will the insurer have a legal right to contest the claim on the basis of

misrepresentation and request additional information before deciding to pay or

deny the claim. The face amount on the policy is the initial amount that the

policy will pay at the death of the insured or when the policy matures, although

the actual death benefit can provide for greater or lesser than the face amount.

The policy matures when the insured dies or reaches a specified age (such as

100 years old).


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Costs, insurability, and underwriting

The insurer (the life insurance company) calculates the policy prices with

intent to fund claims to be paid and administrative costs, and to make a profit.The cost of insurance is determined using mortality tables calculated by

actuaries. Actuaries are professionals who employ actuarial science, which is

based in mathematics (primarily probability and statistics). Mortality tables

are statistically-based tables showing expected annual mortality rates. It is

possible to derive life expectancy estimates from these mortality assumptions.

Such estimates can be important in taxation regulation. The three main

variables in a mortality table have been age, gender, and use of tobacco. More

recently in the US, preferred class specific tables were introduced. The

mortality tables provide a baseline for the cost of insurance. In practice, these

mortality tables are used in conjunction with the health and family history of

the individual applying for a policy in order to determine premiums and

insurability. Mortality tables currently in use by life insurance companies in

the United States are individually modified by each company using pooled

industry experience studies as a starting point. In the 1980s and 90's the SOA

197580 Basic Select & Ultimate tables were the typical reference points,

while the 2001 VBT and 2001 CSO tables were published more recently. The

newer tables include separate mortality tables for smokers and non- smokers

and the CSO tables include separate tables for preferred classes. Recent US

select mortality tables predict that roughly 0.35 in 1,000 non-smoking malesaged 25 will die during the first year of coverage after underwriting.

Mortality approximately doubles for every extra ten years of age so that the

mortality rate in the first year for underwritten non-smoking men is about 2.5

in 1,000 people at age 65.[6] Compare this with the US population male


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mortality rates of 1.3 per 1,000 at age 25 and 19.3 at age 65 (without regard to

health or smoking status). The mortality of underwritten persons rises much

more quickly than the general population. At the end of 10 years the mortality

of that 25 year- old, non-smoking male is 0.66/1000/year. Consequently, in a

group of one thousand 25 year old males with a $100,000 policy, all of average

health, a life insurance company would have to collect approximately $50 a

year from each of a large group to cover the relatively few expected claims.

(0.35 to 0.66 expected deaths in each year x $100,000 payout per death = $35

per policy).

Administrative and sales commissions need to be accounted for in order for

this to make business sense. A 10 year policy for a 25 year old non-smoking

male person with preferred medical history may get offers as low as $90 per

year for a $100,000 policy in the competitive US life insurance market. The

insurance company receives the premiums from the policy owner and invests

them to create a pool of money from which it can pay claims and finance the

insurance company's operations. The majority of the money that insurance

companies make comes directly from premiums paid, as money gained through

investment of premiums can never, in even the most ideal market conditions,

vest enough money per year to pay out claims.[citation needed] Rates charged

for life insurance increase with the insurer's age because, statistically, people

are more likely to die as they get older. Given that adverse selection can have a

negative impact on the insurer's financial situation, the insurer investigates

each proposed insured individual unless the policy is below a company-established minimum amount, beginning with the application process. Group

Insurance policies are an exception. This investigation and resulting evaluation

of the risk is termed underwriting. Health and lifestyle questions are asked.

Certain responses or information received may merit further investigation. Life

insurance companies in the United States support the Medical Information


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Bureau (MIB), which is a clearinghouse of information on persons who have

applied for life insurance with participating companies in the last seven years.

As part of the application, the insurer receives permission to obtain

information from the proposed insured's physicians. Underwriters will

determine the purpose of insurance. The most common is to protect the owner's

family or financial interests in the event of the insured's demise. Other

purposes include estate planning or, in the case of cash- value contracts,

investment for retirement planning. Bank loans or buy-sell provisions of

business agreements are another acceptable purpose. .

Life insurance companies are never required by law to underwrite or to provide

coverage to anyone, with the exception of Civil Rights Act compliance

requirements. Insurance companies alone determine insurability, and some

people, for their own health or lifestyle reasons, are deemed uninsurable. The

policy can be declined (turned down) or rated.[citation needed] Rating

increases the premiums to provide for additional risks relative to the particular

insured.[citation needed] Many companies use four general health categories

for those evaluated for a life insurance policy. These categories are Preferred

Best, Preferred, Standard, and Tobacco.[citation needed] Preferred Best is

reserved only for the healthiest individuals in the general population. This

means, for instance, that the proposed insured has no adverse medical history,

is not under medication for any condition, and his family (immediate and

extended) have no history of early cancer, diabetes, or other conditions.

Preferred means that the proposed insured is currently under medication for a

medical condition and has a family history of particular illnesses.[citation

needed] Most people are in the Standard category. citation needed Profession,

travel, and lifestyle factor into whether the proposed insured will be granted a

policy, and which category the insured falls. For example, a person who would


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otherwise be classified as Preferred Best may be denied a policy if he or she

travels to a high risk country. Citation needed Underwriting practices can vary

from insurer to insurer which provide for more competitive offers in certain

circumstances.

Death proceeds

Upon the insured's death, the insurer requires acceptable proof of death before

it pays the claim. The normal minimum proof required is a death certificate

and the insurer's claim form completed, signed (and typically

notarized).[citation needed] If the insured's death is suspicious and the policy

amount is large, the insurer may investigate the circumstances surrounding the

death before deciding whether it

has an obligation to pay the claim. Proceeds from the policy may be paid as a

lump sum or as an annuity, which is paid over time in regular recurring

payments for either a specified period or for a beneficiary's lifetime.[citation

needed]

Insurance vs Assurance

The specific uses of the terms "insurance" and "assurance" are sometimes

confused. In general, in jurisdictions where both terms are used, "insurance"

refers to providing coverage for an event that might happen (fire, theft, flood,

etc.), while "assurance" is the provision of coverage for an event that is certain

to happen.


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In the United States both forms of coverage are called "insurance", principally

due to many companies offering both types of policy, and rather than refer to

themselves using both insurance and assurance titles, they instead use just one.


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Conclusion


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Conclusion

Famous institution sponsoring a Cine Awards function stating that it

Was done to increase the brand awareness of LIC. That sounded

Like a big joke. It is time that the top level officials of LIC come out

Sometime in order to feel the pulse of the common man.

After Findings we can see about LIC features and his The tendency to take the

expedient approach and focus on the far right of the LIC spectrum, Peacetime

Contingency Operations and conduct training as usual, while briefing that the

LIC block has been checked, will lead us to a possibly fatal false sense of

security.

Instinctive behavior and ingrained training must be adjusted to fit new

circumstances. STXs must be developed locally or borrowed from units who

have already been through the training.

The probability of becoming involved in a LIC operation is high. The potential

to attract international attention, even with limited forces, is also great. Unit

shave demonstrated that with a balanced training focus and proper preparation,

many pitfalls outlined above can be avoided.

LIC is not conventional warfare. This is critical for the counterinsurgent to

understand. The insurgents violent and coercive strategy is applied so as toachieve political, civil, military and psychological results. Hence, the

counterinsurgent must counter all of these strategic elements individually. In

Corporation of India


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BIBLOGRAPHY


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BIBLOGRAPHY

Books

Insurance principles and practice- Mishra M.N. -S.Chand andCompany ltd

Indian Insurance- Narayanan H. -Jaico

Website www.Insurance.com

www.Insurance India. Com www.licindia.com

www.google.com

Documents

Comparitive Analysis of Lic