repared 8y

Mohammed Arlf
ln18CuuC1lCn Cl LlC
W lounded ln 1936
W LargesL lnsurance co ln lndla
W Cwned by CovernmenL
W LlC offers 66 dlfferenL plans
W 8 zonal offlces
W 100 ulvlslonal offlces
W 2048 8ranch offlces
W 10021449 AgenLs
Cb[ect|ve of LIC
W pread Llfe lnsurance wldely and ln parLlcular Lo Lhe rural areas and Lo Lhe
soclally and economlcally backward classes wlLh a vlew Lo reachlng all
lnsurable persons ln Lhe counLry and provldlng Lhem adequaLe flnanclal
cover agalnsL deaLh aL a reasonable cosL
W Maxlmlze moblllzaLlon of peoples savlngs by maklng lnsurancellnked
savlngs adequaLely aLLracLlve
W ConducL buslness wlLh uLmosL economy and wlLh Lhe full reallzaLlon LhaL
Lhe moneys belong Lo Lhe pollcyholders
W AcL as LrusLees of Lhe lnsured
,|ss|on]v|s|on
W ,|ss|on
xplore and enhance Lhe quallLy of llfe of people
Lhrough flnanclal securlLy by provldlng producLs and
servlces of asplred aLLrlbuLes wlLh compeLlLlve
reLurns and by renderlng resources for economlc
developmenL
W I|s|on
A LransnaLlonally compeLlLlve flnanclal
conglomeraLe of slgnlflcance Lo socleLles and rlde of
lndla
@es of |nsurance o||c|es
W @erm |an
A LradlLlonal lnsurance plan
CheapesL plan avallable ln Lhe markeL Loday
1he sum assured ls reLurned on deaLh whlle maLurlLy beneflLs
are nll
W ndowment |an
AdvancemenL over Lhe Lerm plan
1hls plan offers maLurlLy beneflLs and deaLh beneflLs
ndowmenL plans are generally parLlclpaLlve ln naLure and pay
bonuses Lo Lhe pollcyholder aL Lhe end of Lhe pollcy Lerm g
LlC endowmenL plans offer bonuses [ 8s30/ per Lhousand
sum assured
ulLable for persons who belleve ln asseL creaLlon
@es of |nsurance o||c|es
W Money back plans
uch plans are comparaLlvely more expenslve Lhan
oLher lnsurance plans
Money back plans reLurn a cerLaln percenLage of
Lhe sum assured aL regular lnLervals
W Dn|t ||nked |nsurance |ans
1hese plans comblne markeL llnked reLurns wlLh Lhe
valuable rlsk cover
A porLlon of Lhe premlum ls lnvesLed ln markeL
lnsLrumenLs
1he oLher subsldlary companles under
LlC are
W Llfe lnsurance CorporaLlon (LlC) of lndla lnLernaLlonal A [olnL venLure
offshore company promoLed by LlC whlch commenced lLs operaLlons ln
!uly 1989 wlLh Lhe ob[ecLlve of offerlng pollcles denomlnaLed ln u $ Lo
n8ls resldlng ln Lhe Culf
W LlC nepal lormed ln 2001 ln [olnL venLure wlLh vlshal Croup of
lndusLrles nepal
W LlC Lanka lormed ln 2003 ln [olnL venLure wlLh 8arLleeL Croup of
Companles rl Lanka
W LlC Pouslng llnance sLabllshed ln 19 Lh !une1989 ln uubal wlLh Lhe
ob[ecLlve of provldlng long Lerm flnance for consLrucLlon of houses or
aparLmenLs
@-@
W Lrong and well spread neLwork of quallfled lnLermedlarles and sales
person
W Lrong caplLal and reserve base
W 1he company provldes cusLomer servlce of Lhe hlghesL order
W lndla's Lop lnsurance company and besL among ubllc secLor company
W rovlde beLLer lnfrasLrucLure Lhan any oLher ubllc company
J-
W Peavy managemenL expenses and admlnlsLraLlve cosLs
W Low cusLomer confldence on Lhe prlvaLe players
W Average walLlng Llme for Lhe cusLomer ls 13 Lo 20 mlnuLes
W no separaLe cusLomer care unlL
CC@D-I@I
W lnsurable populaLlon Accordlng Lo lnC only 10 of Lhe
populaLlon ls lnsure whlch represenLs around 30 of Lhe
lnsurable populaLlon 1hls suggesLs more Lhan 300m people
wlLh Lhe poLenLlal Lo buy lnsurance remaln unlnsured
W 1here wlll be lnflow of managerlal and flnanclal experLlse
from Lhe world's leadlng lnsurance markeLs lurLher Lhe
burden of educaLlng consumers wlll also be shared among
many players
W eLup a markeLlng cell aL Lhe local branch
W nsure LhaL pollcles are dlverslfled across several cusLomer
segmenLs
@@
W 8eorganlzaLlon of u's 1he all u's have
sLarLed Lo redeflne Lhelr servlces Lo aLLracL
cusLomer's aLLenLlon
W A few forelgn lnsurance companles have been
permlLLed Lo lncrease Lhelr number branches
and lLs enLry has Laken away some buslness of
Lhe exlsLlng companles
W CrowLh of prlvaLe players has led Lo shlfLlng
emphasls from publlc secLor companles
ulv8lllu llLu
W LlC Pouslng llnance LLd
W LlC PlL Care Pomes LLd
W LlC MuLual lund AMC LLd
W LlC enslon lund LLd
1Ax 8nll1
1)1ax 8eneflLs avallable for varlous Llfe lnsurance plans 1he aggregaLe
amounL of deducLlon under all Lhe relevanL secLlons vlz secLlon
80C secLlon 80CCC and secLlon 80CCu shall noL exceed 8s1 Lakh
2) lncome Lax exempLlon on MaLurlLy/ueaLh Clalms proceeds under
ecLlon 10(10u) All Lhe beneflLs payable under a Llfe lnsurance
pollcy are Lax free Powever ln cases Lhe premlum pald ln excess of
20 of Lhe caplLal sum assured wlLhln a year beneflLs pald excess
of premlums wlll be Laxable 1he beneflLs from a key man lnsurance
pollcy and any sum recelved under ec 80uu ubsecLlon (3) are
also Laxable
3) !eevan nldhl lan new !eevan uraksha l lan (u/s
80CCC) AmounLs pald from Lhe Laxable lncome Lo
premlums of Lhe above annulLy are deducLlble
4) ueducLlon under secLlon 80u Medlcal remlum pald for a
PealLh lnsurance pollcy Medlcal remlum pald for a PealLh
lnsurance pollcy ls deducLlble Lo Lhe exLenL of 8s 13000 for an
assessee and/or hls famlly members' pollcy/s A separaLe
exempLlon Lo Lhe exLenL of 8s 13000 for premlums pald for
an assessee's parenLs ls also avallable lf any one or boLh of
Lhe parenLs are enlor clLlzens Lhen an enhanced exempLlon
llmlL of 8s 20000 ls avallable ecLlon 80u also covers
paymenL of premlum excluslvely for CrlLlcal lllness 8lder
3) !eevan Aadhar lan (ec80uu) remlum pald for LlC's
!eevan Aadhar lan (for Lhe malnLenance of an
handlcapped dependenL) ls ellglble for deducLlon from
Lhe LoLal lncome Lo Lhe exLenL of 8s30000 and Lo Lhe
exLenL of 8s73000/ where handlcapped dependenL ls
sufferlng from speclfled severe dlsablllLy
6) xempLlon ln respecL of commuLaLlon of penslon under
!eevan uraksha !eevan nldhl lans under ecLlon
10(10A)
@reat of new entrants
2ower of su||ers
3ower of buers
4va||ab|||t of subst|tutes
SComet|t|ve r|va|r
orLers 3 lorces Analysls
orLer's llve lorces
@reat of -ew ntrants
1 1he average enLrepreneur canL come along and sLarL a
large lnsurance company 1he LhreaL of new enLranLs lles
wlLhln Lhe lnsurance lndusLry lLself ome companles have
carved ouL nlche areas ln whlch Lhey underwrlLe
lnsurance 1hese lnsurance companles are fearful of belng
squeezed ouL by Lhe blg players
2 AnoLher LhreaL for many lnsurance companles ls oLher
flnanclal servlces companles enLerlng Lhe markeL WhaL
would lL Lake for a bank or lnvesLmenL bank Lo sLarL offerlng
lnsurance producLs? ln some counLrles only regulaLlons LhaL
prevenL banks and oLher flnanclal flrms from enLerlng Lhe
lndusLry lf Lhose barrlers were ever broken down llke Lhey
were ln Lhe u wlLh Lhe CrammLeach8llley AcL of 1999
you can be sure LhaL Lhe floodgaLes wlll open
ower of u||ers
W 1he suppllers of caplLal mlghL noL pose a
blg LhreaL buL Lhe LhreaL of suppllers
lurlng away human caplLal does lf a
LalenLed lnsurance underwrlLer ls worklng
for a smaller lnsurance company (or one
ln a nlche lndusLry) Lhere ls Lhe chance
LhaL person wlll be enLlced away by larger
companles looklng Lo move lnLo a
parLlcular markeL
ower of 8uers
W 1he lndlvldual doesnL pose much of a
LhreaL Lo Lhe lnsurance lndusLry Large
corporaLe cllenLs have a loL more
bargalnlng power wlLh lnsurance
companles Large corporaLe cllenLs llke
alrllnes and pharmaceuLlcal companles
pay mllllons of dollars a year ln
premlums lnsurance companles Lry
exLremely hard Lo geL hlghmargln
corporaLe cllenLs
va||ab|||t of ubst|tutes
W 1hls one ls preLLy sLralghL forward for Lhere are
plenLy of subsLlLuLes ln Lhe lnsurance lndusLry
MosL large lnsurance companles offer slmllar
sulLes of servlces WheLher lL ls auLo home
commerclal healLh or llfe lnsurance chances are
Lhere are compeLlLors LhaL can offer slmllar
servlces ln some areas of lnsurance however
Lhe avallablllLy of subsLlLuLes are few and far
beLween Companles focuslng on nlche areas
usually have a compeLlLlve advanLage buL Lhls
advanLage depends enLlrely on Lhe slze of Lhe
nlche and on wheLher Lhere are any barrlers
prevenLlng oLher flrms from enLerlng
Comet|t|ve |va|r
11he lnsurance lndusLry ls becomlng hlghly compeLlLlve
1he dlfference beLween one lnsurance company and
anoLher ls usually noL LhaL greaL As a resulL lnsurance
has become more llke a commodlLy an area ln whlch
Lhe lnsurance company wlLh Lhe low cosL sLrucLure
greaLer efflclency and beLLer cusLomer servlce wlll beaL
ouL compeLlLors
2 lnsurance companles also use hlgher lnvesLmenL
reLurns and a varleLy of lnsurance lnvesLmenL producLs
Lo Lry Lo lure ln cusLomers ln Lhe long run were llkely
Lo see more consolldaLlon ln Lhe lnsurance lndusLry
Larger companles prefer Lo Lake over or merge wlLh
oLher companles raLher Lhan spend Lhe money Lo
markeL and adverLlse Lo people
CC-CLDIC-
W 1he producLs of LlC are no doubL very good and lL provldes
Lhe cusLomlzed soluLlon Lo lLs cusLomer Lhe producLs offerlngs
are made so very flexlble and adapLable ln order Lo geL wlLh
Lhe cusLomer requlremenLs
W All Lhe producLs and Lhe speclal offerlng aL LlC loaded wlLh loL
of beneflLs for Lhe cusLomer
W LlC ls always Lhere Lo serve lLs cusLomers wlLh greaL speed
W LlC has a wlde neLwork of branches amongsL Lhe prlvaLe
secLor lnsurance companles