A PROJECT SYNOPSIS FOR CUSTOMER SATISFACTION ON LIFE INSURANCE CORPORATION OF INDIA Submitted by BHUPENDER SHARMA (04511301710) In partial fulfillment

of requirements For the reward of the degree OF BACHELOR OF BUSSINESS ADMINISTRATION Under the supervision of MS. GUNJAN BUDHLANI

BERI INSTITUTE OF TECHNOLOGY, TRAINING AND RESEARCH TIKRI KALAN, DELHI (Affiliated to Guru Gobind Singh Indraprastha University)

ACKNOWLEDGEMENT

We would like to take this opportunity to express my deep gratitude towards all those who have in various ways helped me in the completion of this project. I like this opportunity to extend my sincere thanks to Ms. Gunjan Budhlani who provided me this great opportunity to work on a project for the company.

Once again I would like to express my sincere thanks to All Management Staff and employees of Life Insurance Corporation of India (LIC) New Delhi who encourage me and provided required helped me in completion of this project.

BHUPENDER SHARMA

CONTENTS
Page Number ACKNOWLIDGEMENT3 CHAPTER 1 INTRODUCTION......................................................................................................................5 CHAPTER 2 LITERATURE REVIEW........................................................................................................17 CHAPTER 3 RESEARCH METHODOLOGY....23 CHAPTER 4 DATA ANALYSING AND FINDINGS...26 CHAPTER 5 CONCLUSION AND SUGGESTION...37 QUESIONNAIRE..................................................................................................................41 BIBLIOGRAPHY44

INTRRODUCTION
Wherever there is uncertainty there is risk. The risk cannot be averted. The risk is uncertainty of the financial loss. We dont have any command on uncertainties. This makes it essential that we think in favour of a device that becomes instrumental in spreading the loss. It is in this context that we think about insurance. Protection against the possible chances of generating uncertain losses. It eliminates worries and miseries of losses or destruction of property and death. Life insurance is a contract between you and a life insurance company, which provided you a death during the contract term. Buying insurance is extremely useful if you are the principal earning member in the family unfortunate premature demise, your family can remain financially secure because of the life that you have purchased. The primary purpose of life insurance is therefore protection of the family in the even insurance is also seen as a tool to plan effectively for your future years. Today, the market offers insurance plans that not just cover your same time grow your wealth too. If you have dependants and financial responsibilities toward them, then you certainly need. Having a family means dependant, which in turn means financial commitments. Finance comes in the form of loans, children s education, medical expenses etc. Imagine what would happen if you were to lose your life suddenly or become disabled being insured in a situation like this is a necessity. When you insured your life, in effect what you are doing insuring your earning capacity that your dependents will be able to continue living without financial hardships even in case. Life wasnt designed to be risk free. The key is not to eliminate risk, but to estimate it accurately and manage it wisely. Insurance sector have characteristic that give can boost to the growth of any economy .it is due to the savings done at the individual level and at micro level it generates funds for infrastructure building as the cash flow is constant while the payout is differed, so that the insurance companies are becoming biggest investors in long gestation infrastructure development projects and hence have a great Importance to the developing economy like India. Insurance sector with an annual growth rate of 15-20% and the largest number of life insurance policies in force, the potential of the Indian insurance industry is huge.

OBJECTIVE OF THE STUDY:

1) To determine the present position and satisfaction of customer in Life Insurance
Corporation of India The main objective of the project was to analyses consumer satisfaction of Life Insurance Corporation of India with other services in Delhi. And also present position of the company. 2) To determine the market share of different brands. The second objective of the project was to determine the market share of different brands available in the market. There was a tough competition for the brand in the market. Therefore to get establish, company had to make its competitors analysis and need to determine where do they stand. 3) Responses of customer Responses from them were collected through survey and for the questionnaire were prepared for both of them. 4) Benefits derived by assessing consumer satisfaction are: - Feedback to organization regarding product. - Understanding customer s requirements. - Providing superior service to customer. - Strengthen the relationship with customers. - Formulating sales strategies. 5) Identify pros and cons of the brand. This was a fundamental objective of the whole research. Company wants to identify that where does the brand lack. In other words, what are the brands so that it can rectify them in order to establish the brand in the market. 6) Suggestions and recommendations. The objective of the research was not only to find out the problem but also the identification of solutions or suggestions of the problems.

INDUSTRY PROFILE
The industries, businesses and individuals are considerably by the services of insurance organization. A. The oldest form of insurance (12th century) is marine insurance. After wards in 16th century fire insurance is started in Germany. B. The first registered life office was Hand in Hand Society established in 1696. C. in India the first life insurance was started in the Bengal Presidency in 1818 knows as oriental life insurance company. D. Experiencing so many ups and downs the insurance business was found in changed shapes. Particularly after attaining independence and to the more specific after nationalizing in 1956. E. There was major change in the insurance sector after globalization in 2001. The private player in the insurance industry and ends the dominance of LIC. F. The different MNC s company of foreign country enters in the insurance industry with the joint venture with Indian companies. Today total 11 private life insurance companies are working in insurance industry.

HISTORY
1912: the Indian Life Assurance Companies Act enacted as the first stature to regulate the life insurance business. 1928: the Indian Insurance Companies Act enacted to the government to collect statistical information about both life and non life insurance businesses. 1938: Earlier legislation consolidated and amended to the insurance Act with the objective of protecting the interests of the insuring public. 1956: 245 Indian and Foreign insurers and provident societies taken over by the central government and nationalized. LIC formed by an Act of Parliament, viz. LIC Act, 1956, with a capital contribution of Rs. 5 core from the Government of India.

COMPANY PROFILE
Life Insurance Corporation of India (LIC) is an autonomous body authorized to run the life insurance business in India with its Head Office at Mumbai. About 154 Indian insurance companies, 16 non-Indian companies and 75 provident fund societies were operating in India at the time of nationalization. Nationalization was accomplished in two stages; initially the management of the companies was taken over by means of an Ordinance, and later, the ownership 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 the country, providing them adequate financial cover at a reasonable cost.

Objective of LIC
Following are the objectives of Life Insurance Corporation of India:

(i) Spreading life insurance much more widely and in particular to the rural areas and to the socially and economically backward classes, with a view to 72 introduced in late 1950s were phased out in 1980s and replaced by reach all insurable persons in the country and provide them adequate financial coverage against death at a reasonable cost,

(ii) Maximizing mobilization of people savings by making insurance linked savings adequately attractive (iii) Investing funds to the best advantage of the investors as well as the community as a whole, keeping in view national priorities and obligations of attractive return and (iv) Meeting the various life insurance needs of the community that would arise in the changing social and economic environment through its Family Schemes and Group Insurance Schemes. Under Indian conditions there are only two broad classifications of insurance companies: life and non-life insurance. The life insurance activities are solely managed by Life Insurance Corporation of India in the public sector. The Life Insurance Corporation (LIC) was established about 55 years ago with a view to provide an insurance cover against various risks in life. A monolith then, the corporation, enjoyed a monopoly status and became synonymous with life insurance. At the industry level, along with the Government and the General Insurance Corporation, it has helped establish the National Insurance Academy. It presently transacts individual life insurance businesses, group insurance businesses, social security schemes and pensions, grants housing loans through its subsidiary, markets savings and investment products through its mutual fund. It has a very wide range of business strategy all over India and abroad. LIC of India has been one of the pioneering organizations in India who introduced the leverage of Information Technology in servicing and in their business.

LITERATURE REVIEW

WHAT IS CUSTOMER SATISFACTION

Customer satisfaction, a term frequently used in marketing, is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is defined as "the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings) exceeds specified satisfaction goals." Need for measuring customer satisfaction. -By Giese and Cote

Customers are too good to lose ---------- Lets keep them happy! Customer is the king. In the era of cutthroat competition and economic recession, above axiom has more importance than ever before. Marketing starts with the customer and ends the customer . -Peter F. Drucker. So no organization, small or big ignores the customers. Earth is not the center of universe but revolves around the Sun . -Copernicus. Similarly, we have come to believe that business firm is not the center of economic universe but revolves around the customer. Build customer and not only products. Building customers is not a single step exercise but a process.

SCOPE OF THE STUDY

To find out the satisfaction level of customers towards the quality services provided by LIC

Methods of data collection

SOURCES OF DATA
The sources of data may be classified into (a) primary sources and (b) secondary sources.

Primary Sources
Primary sources are original sources from which the researcher directly collects data that have not been previously collected, e.g., collection of data directly by the researcher on brand awareness, brand preference, brand loyalty and other aspects of consumer behaviour from a sample of consumers by interviewing them.

Secondary Sources
These are sources containing data that have been collected and compiled for another purpose. The secondary sources consist of readily available compendia and already compiled statistical statements

The primary source of data collection

Through QUESTIONAIRES. The questionnaire was filled by respondents. Sample size: 50 respondents Universe : Delhi

DATA ANALYSIS AND INTERPRETATION

Personal Details of the customer Personal details Age 18-24 24-35 35-45 45-55 55-65 Respondents 4 19 16 8 1

ANALYSIS Above diagram consist five classes of different age groups. Here customer 19 customer belongs to 25-35 age groups, 16 customers fall in the age group 35-45 years. Other 8 customer comes are in the class 45-55 years the age group of 18-24 consists four customer reaming customer is in age group 55-65 years. Here majority of customer belong to the group 25-35 years.

Q2. Do you think is it essential to have Life Insurance? YES_______________________________ NO____________________________

No. of Respondents % of Respondents

Yes 45 90

No 5 10

Total 50 100

ANALYSIS To this question 45 consumers reported YES and 5 consumers reported NO.

Q3. Which are the companies you invested your money for Life Insurance?

Companies No. of Respondents Kotak Mahindra Life Insurance LIC Bajaj Allianz Tata AIG Max New York Life Insurance HDFC Life Insurance ICICI Prudential Life Insurance SBI 8 13 6 3 9 8 3 % 16 26 12 6 18 16 9

ANALYSIS From the above figure we come to know that customer is also investing money in other life insurance companies. The major player in insurance is LIC holding 26% of total sample. The second major player Kotak Mahindra Life Insurance is holding 16%. HDFC 18% and AIG are having share of 12% & the Max New York 6% & SBI are having 9%. Q4. Why did you choose Life Insurance Corporation?

ROI Peer Pressure Tax Benefit Security /safety Low Premium TOTAL

Respondents 18 15 10 2 5 50

% 36 30 20 24 10 100

ANALYSIS The above diagram shows 36% of respondents choose because of good returns, 30% because of peer pressure and remaining 24% opt. Because of tax benefit, safety and 100 premium respectively.

Q5. What kind of services you expect from insurance provides. Easy access ability to Deposit Center Time to time premium collection Respondent 16 8 % 32 16

Provision in case of Dues Bonus & other schemes TOTAL

6 20 64

12 40 100

Note. Some of customer are expecting more than single service. ANALYSIS Out of total 50 respondents 32% like to have bonus and other service as a prime concern, 16% like to have provision in case of dues and remaining 31% & 12% respondents say. They need time-to-time premium collection and easy accessibility to deposit centers as a concern before choosing insurance provider.

Q5. How will you rate the services given by Life Insurance Corporation of India? Respondents Poor Average Good 1 16 27 % Of Respondents 2 32 54

Excellent TOTAL

6 50

12 100

ANALYSIS Out of 50 respondents 54% have ratted Life Insurance Corporation of India services as good and 32% have ratted as average. And remaining 12% have ratted as Excellent. Q6. What difference you find between LIC & your previous Insurance provider. Respondents Good Returns Effective Service/liquidity Tax Planning Security/ Safety Benefit TOTAL 16 12 28 22 50 % 21 15 36 28 100

Note. Some of customers are having more than one plan more Benefit are expected in one plan. Total surveys of customers are 50.

Q7. Do have any suggestion for Life Insurance Corporation of India? YES _____________NO___________ YES 39 78 NO 11 22 TOTAL 50 100

No of Respondents % of Respondents

ANALYSIS To this question 39 consumers reported YES and 11 consumers reported NO .

Q8. In future, will you purchase policies from Life Insurance Corporation of India? YES_________ NO_________

YES No of Respondents % Of Respondents 32 64 18 36

NO 50 100

TOTAL

ANALYSIS To this question 32 consumers reported YES and 18 consumers reported NO .

RECOMMENDATIONS
1) There is scope to sale insurance policy by concentrating on age group 18-24 years here potential of customers are there.(Example. Software professional, BPO employees, and professionals) Flexi plan can be sold by concentrating on age group 35-45 years. (Example. Government employees, executives and businessman) 2) As major respondents think to have life insurance policy is very essential there is lot of scope for insurance company. 3) Life Insurance Corporation of India should try to build trust among the public by making people aware of their investment is safe, high return on investment, Tax Benefits.

4) As more respondents are investing in Life Insurance Corporation of India for getting high return on investment the company should try to provide attractive returns on investments in future. 5) Life Insurance Corporation of India should introduce attractive policies & also attractive bonus on policies to attractive more potential customers. 6) Approx 36% of respondents differ with there previous insurance provider, they field that Life Insurance Corporation of India providing good tax benefit for there investment so Life Insurance Corporation of India if possible try to provided more tax benefit customer. 7) 64% respondents are willing to purchases Life Insurance Corporation of India policies in future this benefit Life Insurance Corporation of India as mort potential customer in future.

CONCLUSION

After conducting market research for Life Insurance Company we came to know different needs of consumers, their valuable suggestions, responses to the different questions. With this information we can conclude that there is good market awareness about Life Insurance Corporation of India in the market. Customer satisfaction level of most respondents is higher for Life Insurance Corporation of India, which is provided by survey. Higher satisfaction level of life insurance Corporation of India was monthly due to LIC provides good tax benefit for the consumers also ROI, security etc. LIC plan is the best-sold plan in market by Life

Insurance Corporation of India. This conveys that the customer s is switching to retirement plan.

ANNEXURE

QUESTIONNAIRE
1. Personal detail Name: __________________________________________________ Age:18-24 25-35 35-45 45-55 55 and above Phone No. _______________________________________________ E-mail. ________________________________________________________ Office Address: ________________________________________________________ Residential Address: ________________________________________________________

2. Do you think is it essential to have Life Insurance?

YES

NO

3. Which are the companies you invested your money for Life Insurance? a) Kotak Mahindra Life Insurance b) LIC c) Bajaj Allianz d) Tata AIG e) Max New York Life Insurance f) HDFC Life Insurance g) ICICI Prudential Life Insurance h) SBI

4. Why did you choose Life Insurance Corporation of India? a) ROI b) Peer Pressure c) Tax Benefit d) Security /safety e) Low Premium 5. What kind of services you expect from insurance provides.? a) Easy access ability to Deposit Center b) Time to time premium collection c) Provision in case of Dues (Policy Lapse) d) Bonus & other schemes 6. How will you rate the services given by Life Insurance Corporation of India? a) Poor b) Average c) Good

d) Excellent 7. What difference you find between LIC & your previous Insurance provider. a) Good Returns (HIGHEST) b) Effective Service/Liquidity c) Tax Planning d) Security/ Safety Benefit & Protection on your Capital

8. Do have any suggestion for Life Insurance Corporation of India?

YES If yes please write below:

NO

............ 9. In future, will you purchase policies from Life Insurance Corporation of India?

YES

NO